BTS Group Holdings PCLbts.listedcompany.com/misc/presentation/20160420... · 4/20/2016 ·...
Transcript of BTS Group Holdings PCLbts.listedcompany.com/misc/presentation/20160420... · 4/20/2016 ·...
prepared by Investor Relations departmentBTS Group Holdings PCL
BTS Group General Presentation
BTS Group Holdings PCL
GENERAL PRESENTATIONAPRIL 2016
prepared by Investor Relations departmentBTS Group Holdings PCL
IR Contacts
2
This document has been prepared and distributed by the Investor Relations Department of BTS Group Holdings PCL (“BTSG”) solely for information purposes. Itdoes not represent or constitute an offer, invitation, recommendation or solicitation to trade shares in BTSG and should not be relied on as such. Some of the information in thisdocument has not been independently verified, and also includes information made available from public sources and other third party opinion or analyst. BTSG does not monitor orcontrol the content of third party opinion or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statements. Thus, BTSGassumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the information described herein. None of BTSG or any of its agents, orall of their respective affiliates, or representatives shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents orotherwise arising in connection with this document.
All information contained in this document is presented as of the date indicated within, and BTSG assumes no duty to confirm, revise or update the information.Certain statements in this document may be deemed to contain forward-looking statements, including the statements included or incorporated with the words "believe","anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statementsas to future performance or events. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual resultsto differ materially from historical results or those anticipated at the time the forward-looking statements are made. Thus, BTSG assumes no responsibility and makes norepresentations with respect to the accuracy and/or completeness of the forward-looking statements. BTSG undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Disclaimer
Address: BTS Group Holdings PCLIR Department15th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd.Chomphon, Chatuchak, Bangkok, Thailand 10900
Telephone: +66(0) 2273 8611-15 Fax: +66(0) 2273 8610
Email: [email protected] Website: www.btsgroup.co.th
BTS Group General Presentation
prepared by Investor Relations departmentBTS Group Holdings PCL
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
3
Contents
BTS Group General Presentation
prepared by Investor Relations departmentBTS Group Holdings PCL
4
BTS Group History
BTS Group General PresentationSection 1: BTS Group in Brief
Company established as Tanayong Co., Ltd. (TYONG) to operate in property development field
1968
TYONG listed on the Stock Exchange of Thailand under Property Development sector
1991
TYONG established a wholly-owned subsidiary, Bangkok Transit System Corporation Ltd. (BTSC), which won the SkyTrainconcession bid
1992
Commercial operation of the BTS SkyTraincommenced
1999
BTSC exit court supervised rehabilitation procedure
2008
BTSC expanded into Media business through the acquisition of 100% of VGI Global Media Co., Ltd. (VGI)
2009
TYONG acquired 94.6% of BTSC, returning Mass Transit operations to be the primary business of the Company. The Company also changed its name to BTS Group Holdings PCL (BTSG)
2010BTSC sold the future Net Fare-box Revenue under its Concession Agreement to BTS Rail Mass Transit Infrastructure Fund (BTSGIF)
APR 2013
VGI Global Media PCL, the Group’s Media subsidiary, listed on the Stock Exchange of Thailand
OCT 2012
BTSC signed a 30-year operating & maintenance (O&M) contract covering all Green Line extensions under the purview of the Bangkok Metropolitan Administration (BMA)
MAY 2012
prepared by Investor Relations departmentBTS Group Holdings PCL
Nine Square Property Co., Ltd.
100%
Nuvo Line Agency Co., Ltd.
50%
75.47%
50%
51%
Keystone Estate Co., Ltd.
100% BTS Sansiri Holding Twelve Limited
50%
BayswaterCo., Ltd.
50%
5
BTS Group Holdings PCL
BTS Group General PresentationSection 1: BTS Group in Brief
Shareholding Structureas of 31 March 2016
BTS Rail Mass Transit Growth
Infrastructure Fund (BTSGIF)
97.46%
Mak8 Co., Ltd.100% BTS Sansiri Holding
Eleven Limited50%
100% BTS Sansiri Holding Nine Limited
50%
Yongsu Co., Ltd.100% BTS Sansiri Holding
Eight Limited50%
100% BTS Sansiri Holding Seven Limited
50%
100% BTS Sansiri Holding Six Limited
50%
BTS Land Co., Ltd.100% BTS Sansiri Holding
Five Limited50%
MuangthongAssets Co., Ltd.
100% BTS Sansiri Holding Four Limited
50%
DNAL Co., Ltd.100%
BTS Sansiri Holding Three Limited
50%The Community One Co., Ltd.
100%
Siam Paging and Communication
Co., Ltd.
100%BTS Sansiri Holding
Two Limited50%Kingkaew Assets
Co., Ltd.100%
PrannaKiri Assets Co., Ltd.
100% BTS Sansiri Holding One Limited
50%Ratburana Property Co., Ltd.
100%
Bangkok Mass Transit System PCL (BTSC)
U City PCL
23.30%
MEDIA BUSINESS
41.0% Kanjanapas Family1
32.8% Institutional Investors1
26.2% Individual Investors1
35.64% 100%
PROPERTY BUSINESS
VGI Advertising Media Co., Ltd.
100%
888 Media Co., Ltd.
100%
100%
Master Ad PCL24.96%
Aero Media Group Co., Ltd.
20%
VGI Global Media PCL (VGI) 2
Point of View (POV) Media Group Co., Ltd.
Unicorn Enterprise Co., Ltd.
Tanayong Food and Beverage Co., Ltd.
Thana City Golf & Sports Club Co., Ltd.
Tanayong Property Management Co., Ltd.
33.33%
MASS TRANSIT BUSINESS
Tanayong International Ltd.100%
SERVICES BUSINESS
RabbitPay System Co., Ltd.
80%
Bangkok Payment Solutions Co., Ltd.
60%
ASK Direct Group Co., Ltd.
51%
ASK Broker Association Co., Ltd.
51%
Rabbit Internet Co., Ltd.
25%
Tanayong Hong Kong Ltd.100%
Rabbit Rewards Co., Ltd.100%
Primary Kitchen Co., Ltd.100%
BSS Holdings Co., Ltd.100%
51% ATS Rabbit Special Purpose Vehicle Co., Ltd.
Little Corner Co., Ltd.69%
Man Kitchen Co., Ltd.70%
HHT Construction Co., Ltd.51%
Absolute Hotel Services
Hong Kong Ltd.90%
12.26%
Bangkok Smartcard System Co., Ltd.
Absolute Hotel Services Co., Ltd.
1 Information based on book closure date on 26 Jan 16 with total issued shares = 11,929.3mn shares2 BTSG holds 74.3% of VGI indirectly and directly
Listed entities
Subsidiaries
Associates
LEGEND
The Community Two Co., Ltd.
100%
BTS Sansiri Holding Fourteen Limited
50%
prepared by Investor Relations departmentBTS Group Holdings PCL
6BTS Group General PresentationSection 1: BTS Group in Brief
Synergistic Business Strategyacross all our businesses
MASS TRANSIT
Sole concessionaire and operator of the BTS SkyTrain Core Network, its extensions and Bus Rapid Transit system
MEDIA
PROPERTY
SERVICES
E-money service provider for common ticketing system that can be used across
mass transit systems and retail stores
Residential and commercial property projects along rail mass transit route with a portfolio of
land bank for future real estate development
Largest Out-of-Home Media company in Thailand with
exclusive contracts to manage advertising space on the BTS
SkyTrain Core Network, its extensions and all BTS trains
prepared by Investor Relations departmentBTS Group Holdings PCL
7BTS Group General PresentationSection 1: BTS Group in Brief
Investment HighlightsPrime beneficiary from mass transit network expansion across all our businesses
≈9.5x BKK mass transit
extension coverage
≈9.5x mass transit
O&M revenue
4x expected increase in
BTS train capacity
4x expected increase in
BTS extension stations capacity
Real estate development along mass transit worth
THB 100bn in 5 years
Leading digital lifestyle & payment service company
with >10mn users
MEDIA
PROPERTY SERVICES
MASS TRANSIT
MASS TRANSIT NETWORK EXPANSION
prepared by Investor Relations departmentBTS Group Holdings PCL
121 399
548 548
FY 12/13 FY 13/14 FY 14/15 9M 15/16
1,445
2,934
1,355 725
FY 12/13 FY 13/14 FY 14/15 9M 15/16
2,795 3,121 2,926
1,578
FY 12/13 FY 13/14 FY 14/15 9M 15/16
6,016
2,077 2,274 1,834*
FY 12/13 FY 13/14 FY 14/15 9M 15/16
(1) FY ended 31 March (2) VGI discontinued operations in Modern Trade Media effective 1Q 15/16(3) Services revenue excludes revenue of HHT Construction (Thailand) Co., Ltd. as it is consolidated as cost of project under Property business
BTS Group Overview4 Business Units
MASS TRANSIT
PROPERTY
MEDIA
SERVICES
Historical operating revenues(1)
Media Revenue(2) (THB mn)
Property Revenue (THB mn)
Services Revenue(3) (THB mn)
Mass Transit Revenue (THB mn)
Revenue contribution (9M 15/16)
65%9M 15/16
63%9M 15/16
10%9M 15/16
7%9M 15/16
*O&M Revenue: THB 1,184mn; Share in BTSGIF: THB 650mn
BTS Group General PresentationSection 1: BTS Group in Brief
8
Operating EBITDA margin
39%
34%
15%
12%
prepared by Investor Relations departmentBTS Group Holdings PCL
BTSG at a Glance
PROGRESSIVE DIVIDEND POLICY
Minimum THB 21bn committed dividends over 3 years:
No less than THB 6bn in 2013/14
No less than THB 7bn in 2014/15
No less than THB 8bn in 2015/16
Not less than 50% of net profit (stand alone basis)
BTS Group General PresentationSection 1: BTS Group in Brief
HISTORICAL DIVIDEND PAYMENTS / DIVIDEND YIELD
KEY FIGURES (as of 31 Mar 2015)
EMPLOYEES (as of 31 Mar 2015)
BTS Group Holdings 72
Mass Transit 2,039
Media 466
Property 918
Services 505
Total 4,000
THB (mn) USD (mn)**
Operating revenue 7,102 218
Operating EBITDA 2,836 87
Net income*** 2,944 90
Total assets 66,811 2,053
Excess cash and liquid investments 24,088 740
Cash 10,180 313
Current investments 4,766 146
Long-term investments 7,989 245
Restricted deposits 1,154 35
Free cash flow (1,768) (54)
**Source: Bank of Thailand; based on Interbank Exchange Rate of USD 1 = THB 32.548 as of 28 May 2015***to equity holders of the parent
2,015 2,748
4,359
7,073 7,094
2010/11 2011/12 2012/13 2013/14 2014/15
4.8%
7.3% 6.2%
6.5%5.2%
Actual dividend paid (THB mn)
Dividend yield* (%)
* Calculated based on share price one day before the Board of Directors’ approval date for relevant dividend payment
Committed dividend period
9
prepared by Investor Relations departmentBTS Group Holdings PCL
Name %
1 MR. KEEREE KANJANAPAS’S GROUP 41.0%
2 THAI NVDR CO., LTD. 7.6%
3 BANGKOK BANK PUBLIC COMPANY LIMITED 4.6%
4 UOB KAY HIAN PRIVATE LIMITED 1.4%
5 HSBC (SINGAPORE) NOMINEES PTE LTD 1.1%
6 K EQUITY 70:30 LTF 0.8%
7 CHASE NOMINEES LIMITED 0.8%
8 BTS GROUP HOLDINGS PCL 0.8%
9 STATE STREET BANK EUROPE LIMITED 0.8%
10 GOVERNMENT PENSION FUND 0.7%
TOTAL TOP 10 SHAREHOLDERS 59.6%
Stock code BTS
Outstanding shares (mn shares) 11,919.3
Treasury shares (mn shares) 95.8
Market capitalisation (THB mn) 109,061.1
Market capitalisation (USD mn) 3,350.8
Average daily traded value (THB mn) 445.4
Average daily traded value (USD mn) 13.7
BTS Group Share Information
SHARE INFORMATION (as of 31 Mar 2015)
BTS Group General PresentationSection 1: BTS Group in Brief
SHARE PRICE MOVEMENT (as of 31 Mar 2015)
SHARE STRUCTURE (as of 26 Jan 2016)
Kanjanapas family 41.0%
BTS Group treasury shares 0.8%
Institutional investors 32.0%
Others 26.2%
Free float 58.2%
Foreign limit 49.0%
TOP 10 SHAREHOLDERS (as of 26 Jan 2016)
10
9.15
0
500
1,000
1,500
2,000
2,500
6.00
6.50
7.00
7.50
8.00
8.50
9.00
9.50
10.00
10.50
11.00
BTS Turnover (RHS) BTS TB
SET Index (rebased)
THB THB mn
12M ADTV = THB 444mn
prepared by Investor Relations departmentBTS Group Holdings PCL
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
Contents
BTS Group General Presentation 11
prepared by Investor Relations departmentBTS Group Holdings PCL
THB 1.5bn
> THB 14bn
2014 2020 TARGET
12.8 km
121.6 km
2014 2020 TARGET
≈9.5x
≈9.5x
BTS Group Vision 2020
“THAILAND’S LEADING MASS TRANSIT DEVELOPER AND OPERATOR”
≈9.5X BKK MASS TRANSIT EXTENSION COVERAGE
≈9.5X MASS TRANSIT O&M REVENUE
O&M = Operation and Maintenance
MASS TRANSIT RAIL LENGTH TARGETS (KM)
74.2 79.5 94.8 100.1
461.3
515.3
31.0 31.0 31.0 36.3
145.1
2010 2011 2012 2013 2019T 2020T 2029T
Target Network Length in km
BTS Target Distance in km
T = Target
*
*Source: Office of Transport and Traffic Policy and Planning
BTS Group General PresentationSection 2.1: Mass Transit Business
12
prepared by Investor Relations departmentBTS Group Holdings PCL
Role of BTS Group in Mass TransitInvestor, Operator, Developer, Concessionaire
13
OPERATOR OF CORE NETWORK EXTENSIONS DEVELOPER OF RAIL MASS TRANSIT
BTS GROUP
ROLE IN MASS TRANSIT
OPERATOR OF BTS SKYTRAIN CORE NETWORK
Underlying assets have 15-year track recordGrowth & resilience characteristicsStable and growing dividend yieldFull beneficiary of
Ridership growthFare increasesOperating leverage
until Dec 2029
Exclusive operator of BTS SkyTrainCore Network (23.5km)15 year track recordOperate at cost, but potential benefit from
incentive feeLimited CAPEX, large CAPACITYRemain legal concessionaire
Appointed to operate & maintain Green line by the Bangkok Metropolitan Administration (BMA)Track record since 200930-year contract covering Green line extensions
(12.8km) from 2012 - 2042Also covers Core Network (23.5km)
from 2029 to May 2042No ridership risk
Original developer of BTS Core SkyTrainNetworkExpertise as well as financial capability to
invest in future mass transit lines
33.3% INVESTMENT IN BTSGIF
O
O
D
I
BTS Group General PresentationSection 2.1: Mass Transit Business
prepared by Investor Relations departmentBTS Group Holdings PCL
Bangkok Rail Mass Transit Master Plan515.3 km* by 2029, 42.4% share of Mass Transit commute by 2032Sources: Office of Transport and Traffic Policy and Planning,Bangkok Metropolitan Administration
Source: United Nations Statistics Division, BTSC, BMCL, MTR Corporation Limited, SMRT Corporation Limited, official websites of rail mass transit system in major cities
Seoul 51% Hong Kong 46% Singapore 40% Tokyo 36% Guangzhou 17% Bangkok 6%
RAIL MASS TRANSITMARKET SHARE*
Hong Kong 34.7 Singapore 34.2 Tokyo 24.2 Bangkok 7.6
PERVASION(per million population)
Source: OTP, Singapore’s Land Transport Authority, Hong Kong’s TransportDepartment, MTR Corporation Limited, SMRT Corporation Limited, Japan Statistic Bureau
(rail track length per mn population)
* Percentage of people using rail mass transit over other forms of mass transit
*Includes MRTA and BMA projects
14BTS Group General PresentationSection 2.1: Mass Transit Business
prepared by Investor Relations departmentBTS Group Holdings PCL
Existing Bangkok Mass Transit NetworkImmature network, 84.8km as of 2015
LINE ROUTEDISTANCE
(KM)OPERATING
SINCE
DARK GREEN(CORE)
MO CHIT – ON NUT 17.0 DEC 99
LIGHT GREEN(CORE)
NATIONAL STADIUM –SAPHAN TAKSIN
6.5 DEC 99
BLUEBANG SUE –
HUA LAMPHONG20.0 JUL 04
LIGHT GREEN(EXTENSION)
SAPHAN TAKSIN –WONGWIAN YAI
2.2 MAY 09
AIRPORT LINK(RED LINE)
PHAYATHAI –SUVARNABHUMI
28.5 AUG 10
DARK GREEN(EXTENSION)
ON NUT – BEARING 5.3 AUG 11
LIGHT GREEN(EXTENSION)
WONGWIAN YAI – BANG WA
5.3 DEC 13
EXISTING LINES - 84.8KM; 60 STATIONS
CORE NETWORK
3 RAIL MASS TRANSIT OPERATORS
BTS: 36.3km(SkyTrain)
BEM: 20.0km(Underground)
SRT: 28.5km(Airport Rail Link)
EXTENSIONS TO OUR CURRENT CORE NETWORK
LIGHT GREENNATIONAL STADIUM –BANG WA14.0km
DARK GREENMO CHIT – BEARING22.3km
BLUEBANG SUE - HUA LAMPHONG20.0km
ARLPHAYATHAI -SUVARNABHUMI28.5km
15BTS Group General PresentationSection 2.1: Mass Transit Business
prepared by Investor Relations departmentBTS Group Holdings PCL
BTS Group: INVESTOR in BTSGIF (Core Network)Prime position to capture growth from Network Expansion
16
*See Appendix 1 for details of Concession Agreement
BTSGIF has the rights to receive the NET FAREBOX REVENUE collected by BTSC on the SkyTrain Core Network until Dec 2029
Formerly, these revenues were retained by BTSC in accordance with the terms and conditions of its Concession Agreement with the BMA on the Core Network*
In Apr 2013, BTSC SOLD THE RIGHTS TO NET FAREBOX REVENUE under its concession agreement for the BTS SKYTRAIN CORE NETWORK to BTSGIF
NO REVENUE SHARING TO BMA
BTS Group used the proceeds to purchase 1/3 units in BTSGIF which is the maximum permitted amount under SEC regulations
BTS Group is subject to a lock up of 10 years on these units
WHAT IS BTSGIF?WHAT IS THE CORE NETWORK?
23 stations, 23.5km located at the heart of Bangkok Inaugural Mass Transit route, operated since Dec 1999 NO REVENUE SHARING TO BMA
DARK GREENMO CHIT – ON NUT17.0km
LIGHT GREENNATIONAL STADIUM -SAPHAN TAKSIN6.5km
BTS Group General PresentationSection 2.1: Mass Transit Business
prepared by Investor Relations departmentBTS Group Holdings PCL
1,4
19
1,7
80
2,1
22
2,2
94
2,5
73
2,8
17
3,0
66
3,2
24
3,2
92
3,4
85
3,5
45
4,2
97
4,8
96
5,6
77
5,8
74
59
79 96
105 118
132 139 133 136 144 145
176
197 215 219
-
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180
190
200
210
220
230
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
Farebox revenue (THB mn) Ridership (mn)
BTS Group: INVESTOR in BTSGIF (Core Network) Uninterrupted revenue growth and resilient under pressure
17
Jul 04: Opening of Bangkok MRT System (Blue line) May 10:
Opening of Bangkok BRT;Thai political protests
Aug 10: Opening of Airport Rail Link
Aug 11: On Nut – Bearing extension opening
Oct – Nov 11: Floods
INITIAL GROWTHRIDERSHIP CAGR (3 YRS): 21%
STABLE GROWTHRIDERSHIP CAGR (5 YRS): 5%
FASTER GROWTHRIDERSHIP CAGR (6 YRS) 8%
Dec 99: BTS SkyTrainservice opening
Mar 07: First fare rate increase
May 09: Opening of SilomLine extension
Farebox revenue CAGR: 10.7% Ridership CAGR: 9.8%
GROWTH (14 YRS)
Nov 13: Thai political protests
Dec 13: Wongwian Yai – Bang Waextension opening
Apr 13: Sale of net farebox revenue to BTSGIF
Jun 13: Fare increase
BTS Group General PresentationSection 2.1: Mass Transit Business
prepared by Investor Relations departmentBTS Group Holdings PCL
SJT 36%AVG FARE THB 30.9
30-DAY PASS (ADULT)* 30%AVG FARE THB 23.9
PURSE (STV)* 25%AVG FARE THB 26.5
30-DAY PASS (STUDENT)* 8%AVG FARE THB 19.5
ONE-DAY PASS 1%AVG FARE THB 34.1
18
FARE ADJUSTMENT MECHANISM
Can be adjusted no more than once every 18 months by making announcement to BMA and public 30 days in advance
Must not exceed the Authorised fare
EFFECTIVE FARE
Normal situation: upon change of Bangkok’s CPI >=5%, may adjust up to 7% (No approval required)
Special situation: upon change of CPI (>= 9%), USD/THB foreign exchange rate, interest rate or electricity costs (BMA approval required)
AUTHORISED FARE
HISTORICAL AVERAGE FARE RIDERSHIP BY TICKET TYPES (FY 14/15)
DISTANCE-BASED FARE (BY NO. OF STATIONS)
THB / Trip
20.1
26.8
33.5
40.2
46.9
53.6
60.3
15.0
22.025.0
28.031.0
34.037.0
42.0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
AUTHORISED FARE
EFFECTIVE FARE
POTENTIAL FARE UPSIDE
NO. OF STATIONS
THB
* Counted as Rabbit
21
.4
22
.1 24
.2
24
.2
24
.1
24
.4
24
.4
24
.8 26
.4
26
.9
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
BTS Group General PresentationSection 2.1: Mass Transit Business
BTS Group: INVESTOR in BTSGIF (Core Network) Flexibility to increase fares
prepared by Investor Relations departmentBTS Group Holdings PCL
145
176197
215 219
57.1%
67.5% 67.8% 68.8% 69.9%
0.0 %
10. 0%
20. 0%
30. 0%
40. 0%
50. 0%
60. 0%
70. 0%
80. 0%
2010/11 2011/12 2012/13 2013/14 2014/15
100
120
140
160
180
200
220
240
260
280
300
Core BTS SkyTrain Ridership (mn) Operating EBITDA Margin (%)
Core Network Performance Efficient operation; further scope for cost efficiency
19
STRONG RIDERSHIP GROWTH ALONG WITH SUSTAINED MARGIN EXPANSION
CORE COSTS AND SG&A BREAKDOWN – FY 14/15
EBITDA MARGIN COMPARISON (CORE ONLY)
MAINTENANCE EXPENSES BREAKDOWN
MAINTENANCE, 14%
STAFF COST, 19%
UTILITIES, 8%DEPRECIATION, 50%
ADMIN, 4%
* FY ending 31 Mar 2014, 2015 ** FY ending 31 Dec 2013, 2014
68.8%
15.1%
44.3%
69.9%
17.4%
43.1%
BTS SkyTrain* Singapore MRT* Hong Kong MTR**
FY 13/14 FY 14/15
387 391 417 377 365 344 361
387
171 200
59
40 27
11 79
95
250
300
350
400
450
500
550
600
650
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15Major overhaul expenses General maintenance expense
(THB mn)OTHERS, 7%
BTS Group General PresentationSection 2.1: Mass Transit Business
prepared by Investor Relations departmentBTS Group Holdings PCL
ESTIMATED FLEET***
X7 28 +13.5% ~THB 2.0bn
70 +47.1%
TOTAL FUTURE FLEET X59 306
CURRENT FLEET NO. OF TRAINS TOTAL CARRIAGES CAPACITY INCREASE (CUMULATIVE)
INDICATIVE CAPEX (THB mn)
X35 105 FULLY PAID
X12 48
35
FULLY PAID
FULLY PAID
X5 20 FULLY PAID
TOTAL CURRENT FLEET X52 208
Rolling StockAmple capacity with limited Capex for concession period
20
SYSTEM DESIGN
CAPACITY
OF 50,000 PPHPD*
CURRENT CAPACITY
OF 24,000** PPHPD* Based on 2 assumptions: i) 6-car trains in service and ii) 2 min headway** Based on Sukhumvit Line morning peak time*** Based on existing contracts (core network and O&M contracts up to 2042)
Already operated in May 2013
Already fully operated in Feb 2014
Expect to order in 2017, expect to be delivered in 2019
Expected required by 2032
BTS Group General PresentationSection 2.1: Mass Transit Business
prepared by Investor Relations departmentBTS Group Holdings PCL
BTSC is the OPERATOR of the Core NetworkThailand’s most experienced operator
21
Reliable Operations Team with 16-year track record Impeccable safety record Strong management expertise
OPERATED & MAINTAINED THE CORE NETWORK SINCE 5 DEC 1999
REMAINS THE CORE NETWORK OPERATOR FOLLOWING
ESTABLISHMENT OF BTSGIF
BTSC operates the Core Network on behalf of BTSGIFIt deducts OPEX and CAPEX at cost (no margin)BTSC receives an incentive fee from BTSGIF
Net Farebox Revenue (transferred to BTSGIF daily)
FAREBOX REVENUE OPERATING EXPENSES
CAPITAL EXPENDITURE
Incentive Fee
All farebox revenue from passengers in the Core BTS SkyTrain system
Other revenue and compensation from any person under, arising out of or relating to concession or the farebox revenue of the Core BTS SkyTrain system
Excludes revenue from O&M business extension, media business and revenue from BTSC’s other business
Cost relevant to the Core BTS SkyTrain system such as maintenance capital expenditure, labor, electricity, etc.
New rolling stock for the Core BTS SkyTrain system to serve future ridership
net ofPAYABLE BY BTSGIF TO BTSC ONLY WHEN NET FAREBOX REVENUE EXCEEDS BUDGET
1. NO INCENTIVE FEEIf actual Net Farebox Revenue ≤ 100% of Budget
2. 10% INCENTIVE FEEOn actual amount exceeding 100% but not exceeding 125% of Budget
3. FEE FROM ITEM 2 PLUS 15% OF THE INCREMENTAL AMOUNT EXCEEDING 125%If actual amount > 125% of Budget
BTS Group General PresentationSection 2.1: Mass Transit Business
prepared by Investor Relations departmentBTS Group Holdings PCL
THB
1.5
bn
THB
3.7
bn
THB
4.6
bn
14/15
15/16
16/17
17/18
18/19
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27
27/28
28/29
29/30
30/31
31/32
32/33
33/34
34/35
35/36
36/37
37/38
38/39
39/40
40/41
41/42
42/43
Interest income O&M - Core Network O&M - Extension
BTSC: OPERATOR of Green Line Extensions12.8km of extensions already under contract
22
O&M COSTS AND SG&A BREAKDOWN - FY14/15
BTSC has operated & maintained the extensions since 2009 Agreed fee income with no ridership risk 30-year contract, covers:
11 stations/12.8km extensions (May 2012 – May 2042)
23 stations/ 23.5km Core Network (Dec 2029 – May 2042)
Existing extensions LIGHT GREEN: Saphan Taksin - Wongwian Yai
(2.2km/2 stations) DARK GREEN: On Nut – Bearing
(5.3km/5 stations) LIGHT GREEN: Wongwian Yai - Bang Wa
(5.3km/4 stations)
MAINTENANCE, 21%
STAFF COST, 39%
OTHERS, 14%
CLEANING & SECURITY GUARD, 9%
DEPRECIATION, 2%
UTILITIES, 14%
EXTENSIONSaphan Taksin – Bang Wa
EXTENSIONOn Nut - Bearing
CORE NETWORK
O&M PRE-AGREED REVENUE (Excl. VAT)
• CAGR (extension) from FY 14/15 to FY 41/42 = 5.5%• CAGR (core network) from FY 30/31 to FY 41/42 = 1.5%
BTS Group General PresentationSection 2.1: Mass Transit Business
prepared by Investor Relations departmentBTS Group Holdings PCL
With 6 distinctive advantages, we are in very good position to achieve our vision
23
Dark Green North
(Mo Chit –Saphan Mai – Khu Khot)
Dark Green South
(Bearing –Samut
Prakarn)
Pink LRT
LightGreen
(Bang Wa –Boromma
ratchachonnani)
Grey
1) The only operator who can provide seamlessservices ~15-minute interchange time saved*
2) Lower project CAPEX
3) Lower O&M OPEX~10% operating costs and 15% maintenance costs saved*
4) Proven track records• 16 years’ experience in running BTS core lines• Completed BTS core line construction in 35 mths
5) Financial strength with THB 15bn excess liquidity
6) Financial flexibility from the BTS-W3 warrants
*compared between seamless model and shuttle service model
BTS Group General PresentationSection 2.1: Mass Transit Business
prepared by Investor Relations departmentBTS Group Holdings PCL
LINE ROUTEAUTHORISING
BODYOPERATE YEAR
CONSTRUCTIONPROGRESS
DISTANCE (KM)
PURPLE BANG YAI - BANG SUE MRTA 2015 UNDER CONSTRUCTION 23.0
BLUE HUA LAMPHONG - BANG KHAE MRTA 2016 UNDER CONSTRUCTION 14.0
BLUE BANG SUE - THA PRA MRTA 2016 UNDER CONSTRUCTION 13.0
DARK RED BANG SUE - RANGSIT SRT 2017 UNDER CONSTRUCTION 26.3
DARK GREENSOUTH
BEARING - SAMUT PRAKARN BMA 2018 UNDER CONSTRUCTION 12.8
DARK GREENNORTH
MO CHIT – SAPHAN MAI – KHU KHOT BMA 2019 UNDER CONSTRUCTION 18.4
LIGHT GREEN BANG WA - BOROMMARATCHACHONNANI BMA 2019 7.0
LRT BANG NA - SUVARNABHUMI BMA 2018 18.3
GREY (PHASE I) WATCHARAPHON – THONG LO BMA 2019 16.3
PINK KHAE RAI – PAK GRED – MIN BURI MRTA 2020 – 2021 36.0
DARK GREEN SAMUT PRAKARN - BANGPU MRTA 2018 7.0
YELLOW LAD PRAO – SAM RONG MRTA 2019 30.4
ORANGE TALING CHAN – MIN BURI MRTA 2019 39.8
LIGHT RED BANG SUE - PHAYATHAI – MAKKASAN SRT 2019 9.0
LIGHT RED MAKKASAN – HUA MARK SRT 2019 10.0
DARK RED RANGSIT – THAMMASART UNIVERSITY SRT 2018 10.0
DARK RED BANG SUE - HUA LAMPHONG SRT 2018 6.5
TOTAL (KM) 297.8
297.8KM ONGOING PROJECTS PRIORITISED BY THE GOVERNMENT, 107.5KM UNDER CONSTRUCTION
CORE AND EXTENSIONS TO OUR CURRENT LINES LINES CONNECTING TO OUR LINES
108.8km
BTS Group: Potential DEVELOPER of Mass Transit extensionsFocused on 6 lines; total length of 108.8km
24
Sources: Office of Transport and Traffic Policy and Planning, National Council for Peace and Order, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, Ministry of Transport
BTS Group General PresentationSection 2.1: Mass Transit Business
prepared by Investor Relations departmentBTS Group Holdings PCL
BTS Group: Potential DEVELOPER of Mass Transit extensionsBTSG well-positioned for new contracts
25BTS Group General PresentationSection 2.1: Mass Transit Business
*See Appendix 2for details of CAPEXrequirements
PINK LINE• Khae Rai – Min Buri (36.0km)• Expected turnkey bidding: 2016• Target operation: 2020 – 2021
DARK GREEN NORTH LINE• Mo Chit – Saphan Mai – Khu Khot (18.4km)• Civil works progress: 4.7% (as of Feb 2016)• Expected O&M award: mid 2016• Target operation: 2020
GREY LINE• Watcharaphol – Rama 9 Bridge (26.0km)• Awaiting EIA approval• Expected bidding (Phase I): late 2016• Target operation (Phase I): 2019
Phase I: Watcharaphol – Thong Lo (16.3km)
LIGHT RAIL TRANSIT (LRT)• Bang Na – Suvarnabhumi (18.3km)• Expected bidding: 2016• Target operation: 2019
DARK GREEN SOUTH LINE• Bearing – Samut Prakarn (12.8km)• Civil works progress: 79.3% (as of Feb 2016)• Expected O&M award: mid 2016• Target operation: late 2019
Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand,Bangkok Metropolitan Administration, Ministry of Transport
LIGHT GREEN LINE• Bang Wa – Borommaratchachonnani (7.0km)• Expected O&M award: 2017• Target operation: 2019
prepared by Investor Relations departmentBTS Group Holdings PCL
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
Contents
26BTS Group General Presentation
prepared by Investor Relations departmentBTS Group Holdings PCL
28% 30% 30% 30% 35% 40%
44% 39% 36% 30% 32%34%
15% 15% 13%12% 9%
6%
13% 16% 20% 27% 24% 19%
FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15
Transit Billboards Street Furniture & Others In-Store
OOH MEDIA FY 14/15
1 FMCG 37.0%
2 REAL ESTATE 12.5%
3 COMMUNICATIONS 7.2%
4 MOTOR VEHICLES 5.8%
5 RETAIL SHOPS/STORES 3.0%
6 TRAVEL & TOURS 2.8%
7 BANKS 2.7%
8 LEISURE 2.5%
9 CREDIT/DEBIT CARDS 2.5%
10 FOOD OUTLETS & RESTAURANTS 2.2%
TOTAL 78.1%
OVERALL THAI MEDIA MARKET SHARE OOH MEDIA MARKET OVERVIEW
OOH MEDIA SECTOR PRIMARILY DRIVEN BY TRANSIT MEDIATransit Media continued to dominate the OOH Media market and is expected to further increase with the rail mass transit network expansion.
BTS Group General PresentationSection 2.2: Media Business
27
Thai Media Market Overview
TOTAL ADSPEND AND THAI MEDIA MARKET SHARE (FY 09/10 – FY 14/15)The transition from Traditional Media to Out-of-Home (OOH) Media was driven by urbanisation, infrastructure development and increase in number of people who spend time outdoors.
Note: Out-of-Home Media = Outdoor, Transit and In-StoreTraditional Media = Radio, Newspapers and MagazinesData excludes classified ads, house ads, digital TV, cable TV and satellite TVSource: The Nielsen Company (Thailand) Limited
TOP 10 ADSPEND FOR OOH MEDIA BY BUSINESS SEGMENTS
Note: VGI discontinued operations in Modern Trade Media effective 1Q 15/16
59% 61% 60% 61% 62% 62%
28%
26% 25% 24% 24%
23%
7%
7% 8% 9% 9%
10%5%
6% 7%
7 % 5%
4% 0%
0% 1% 1%
1% 1%
FY09/10
FY10/11
FY11/12
FY12/13
FY13/14
FY14/15
Internet
Cinema
OOH Media
Traditional Media
TV
AdSpend (THB bn)
93104 105
114 111102
(+28.5% CAGR)
(-2.4%% CAGR)
(+8.4% CAGR)
(-2.2% CAGR)
(+2.9% CAGR)
(+1.9% Industry CAGR)
prepared by Investor Relations departmentBTS Group Holdings PCL
77% 85%
23% 15%
FY 13/14 FY 14/15
Non-BTSMedia
BTS-relatedMedia
REVENUE CONTRIBUTION
FY 13/14 FY 14/15
Net profit margin (%) 36.4% 28.3%
ROA (%) 43.1% 27.8%
ROE (%) 60.7% 44.3%
Net debt to equity (times) N.A. 0.3x
HISTORICAL OPERATING PERFORMANCE
BTS Group General PresentationSection 2.2: Media Business
28
GROSS PROFIT MARGINS
Media Business: Financial PerformanceHigh margin business and low leverage
1,370
1,959
2,795 3,121 2,926
756 1,012
1,386 1,580 1,530
FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15
Operating Revenue Operating EBITDA
(THB mn)
OPERATING REVENUE AND OPERATING EBITDA
Revenue CAGR: 21%EBITDA CAGR: 19%
FY 13/14 FY 14/15
Overall 61% 59%
BTS-related Media 88% 83%
Non-BTS Media 30% 23%
GROSS PROFIT CONTRIBUTION
Note: Ratios calculated from VGI’s consolidated financial statements
FINANCIAL INFORMATION BY BUSINESS SEGMENTS
KEY FINANCIAL RATIOS
53% 61%
47% 39%
FY 13/14 FY 14/15
Non-BTSMedia
BTS-relatedMedia
prepared by Investor Relations departmentBTS Group Holdings PCL
Rights
Exclusive rights for 23 stations on Core Network, 7 stations on the BTS extension lines and all BTS trains
First right to renew contract and extend space on additional mass transit projects that BTSC is granted the rights to operate media space
Effective Period
23 Core Network stations: 18 May 2012 – 4 December 2029
7 Extension stations: 6 May 2015 – 4 December 2029
Concession Fee (payable to BTSC & BMA)
5% - 20% of total BTS-related Media revenues/year (an incremental increase of 5% every 5 years)
fixed rate for 7 extension stations
BTS-related MediaOverview
KEY CONCESSION TERMS OUR PRODUCTS
Source: The Nielsen Company (Thailand) Limited
TRANSIT MARKET SHARE
No. of Media Locations:
30 stations/52 trains
Static Media: >4,000 displays
Digital Media: 2,029 screens
Viewer Reach: >700,000 people/day
Merchandising Space:
>10,000 sq.m.
VGI66%
Others34%
14/15 Transit Media
AdSpend ofTHB 3.9bn
BTS-RELATED MEDIA PROFILE
I. Trains (46% of VGI’s FY 14/15 BTS-related Media revenue)
II. Stations (32% of VGI’s FY 14/15 BTS-related Media revenue)
III. Merchandising & Others (22% of VGI’s FY 14/15 BTS-related Media revenue)
BTS Group General PresentationSection 2.2: Media Business
29
prepared by Investor Relations departmentBTS Group Holdings PCL
543.0 636.5 756.9
580.6654.9
647.7
FY 12/13 FY 13/14 FY 14/15
Static
Digital
2015 2029E
Total rail length (km) 84.8 515.3
No. of stations 60 >320
Market share of rail mass transit commuters
6.4%42.4%
(by 2032E)
UPSIDE FROM MASS TRANSIT NETWORK EXPANSION INCREASED DIGITALISATION
DIGITAL MEDIA PENETRATION STILL RELATIVELY LOW IN THAILANDDigital Media market share is expected to increase over time as its platforms provide more capacity and are cost effective. Moreover, it proves to be more adaptable and dynamic than Traditional Media.
BTS Group General PresentationSection 2.2: Media Business
30
BTS-related MediaGrowth drivers
4X EXPECTED INCREASE IN BTS TRAIN CAPACITY IN 5 YEARS (108.8KM)
FY 14/15 FY 19/20E
Green Lines (no. of carriages)* 208 412
Other Lines (no. of carriages)** none 418
Total (no. of carriages) 208 4X 830
4X EXPECTED INCREASE IN BTS STATIONS IN 5 YEARS (108.8KM)
FY 14/15 FY 19/20E
Green Lines (no. of stations)* 34 66
Other Lines (no. of stations)** None 57
Total (no. of stations) 34 4X 123
BANGKOK RAIL MASS TRANSIT MASTER PLAN
* BTS’s existing network, Dark Green South and North extensions and Light Green Line extension** LRT, Grey Line and Pink Line
97.7% 96.4% 95.2%
2.3% 3.6% 4.8%
2012 2013 2014
Digital (online)***
Offline
*** Including Display, Search, social Media, Creative, Mobile, Facebook Ad and VideoSource: Digital Media Advertising Association (Thailand)
BTS-RELATED MEDIA REVENUE AT VGI LEVEL (STATIC VS DIGITAL MEDIA)BTS Digital Media (Platform Truss LEDs and E-posters) launched in late 2014 and still has room to grow due to increased capacity and strong recovery post economic slump.
48% 49%54%
46%51%52%
1,123.61,291.5 1,404.6(THB mn)
(6% CAGR)
(18% CAGR)
prepared by Investor Relations departmentBTS Group Holdings PCL
Office Building MediaOverview
KEY CONTRACT TERMS OUR PRODUCTS
31
OFFICE MARKET SHARE
No. of Media Locations:
123 grade A buildings in Bangkok
Multimedia: 1,091 screens
Viewer Reach: >660,000 people/day
Average time spent in an elevator:
14 mins/day
VGI87%
Others13%
141 Grade A Buildings in
Bangkok
OFFICE MEDIA PROFILE
Media inside elevators and office building areasRights
Exclusive rights to manage 123 grade A buildings in Bangkok CBD
Contract Length
3-5 years on average
Contract Fee (payable to building owners)
Approximately 20-30% revenue sharing and fixed rates
BTS Group General PresentationSection 2.2: Media Business
prepared by Investor Relations departmentBTS Group Holdings PCL
1976 79
145 149 163 146
41 41 47 5175
103123
FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 9M 15/16
Office Building Media Revenue* (THB mn) No. of buildings
OFFICE BUILDING NETWORK EXPANSION VS REVENUE* NEW OFFICE SUPPLY IN BANGKOK
424,000 SQ.M. OF NEW OFFICE SUPPLY EXPECTED IN THE NEXT 3 YEARS
BTS Group General PresentationSection 2.2: Media Business
32
Office Building MediaGrowth drivers from existing office asset base and new office supply
VGI’S EXISTING OFFICE BUILDING NETWORK IN BANGKOK (BY DISTRICT)
CONTINUOUS REVENUE GROWTH FROM NETWORK EXPANSIONOffice Building Media is set to recover post economic slump and the addition of new office buildings will drive growth in this segment.
* At VGI level
Source: CB Richard Ellis (Thailand) Co., Ltd.
Revenue CAGR (5 yrs): 59%
VGI’s office building network
Bangkok CBD
47 6
112
22
86 62
30
139 23
23
20
197
130
116
2009 2010 2011 2012 2013 2014 2015F 2016F 2017F
CBD ('000 sq.m.) Non CBD ('000 sq.m.)
prepared by Investor Relations departmentBTS Group Holdings PCL
KEY INVESTMENT AND CONTRACT DETAILS OUR PRODUCTS
33
I. Investments in MACO, AERO MEDIA & MIDAS
BTS Group General PresentationSection 2.2: Media Business
Investments
OUTDOOR MEDIA (Billboards, Street Furniture & Transit Media) 24.96% stake in Master Ad PCL (MACO; listed on SET)
AVIATION MEDIA 20% stake in Aero Media Co., Ltd. (342 screens across 13 airports)
ROADSIDE MEDIA 11.11% stake in Midas Global Media Co., Ltd. (MIDAS; non-listed)
Contracts
CHAMCHURI SQUARE (3-yr + 3-yr contract) Exclusive rights to manage media (≈127 media panels)
EMPIRE TOWER (5-yr contract) Exclusive rights to operate mega LED screens at Empire Tower
BUSES Chulalongkorn University (CU Bus): 15 buses and 15 bus stops BRT buses
Exclusive Selling Agent
ARTISTA MEDIA Manage 549 LCD screens in 219 residential buildings
THAI AIRASIA (3-yr contract with renewable rights) Manage media on 30 planes & future fleets
STREET FURNITURE (3-yr contract) Street Furniture including BTS columns and bridge columns at major
junctions across Bangkok
MEGA LEDS >200 sq.m. LEDs in Bangkok and Laos
II. Contracts and Exclusive Selling Agent
Other MediaOverview
prepared by Investor Relations departmentBTS Group Holdings PCL
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
Contents
34BTS Group General Presentation
prepared by Investor Relations departmentBTS Group Holdings PCL
35
BANGKOK CONDO LAUNCHES
63%
61%
56%
61%
50%
52%
54%
56%
58%
60%
62%
64%
66%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2012 2013 2014 2015
Take-up RateUnits
1Q 2Q 3Q 4Q Average Take-up Rate (RHS)
Total 47,339
Total 51,150
Total 50,105
Total 34,666
CONDO LAUNCH PRICES (THB/SQ.M)
LAUNCH PRICES AND TAKE-UP RATES BY DISTANCE TO BTS
63% 47%70%
76%
52% 63% 65%
64%
70% 60% 46%
58%
51% 48% 48% 78%
-
50,000
100,000
150,000
200,000
250,000
2012 2013 2014 2015
THB/sq.m 0 - 200m (CAGR +24.0%)
201 - 500m (CAGR +13.4%)
501 - 1,000m (CAGR +22.6%)
Over 1,000m (CAGR +9.8%)
28%
49%
22%
2%
13%
45%
29%
12%
0
5,000
10,000
15,000
20,000
25,000
30,000
Below THB 50,000 /sq.m
THB 50,000 -100,000 / sq.m
THB 100,001 -200,000 / sq.m
THB over 200,000sq.m
Units 2014 2015
BUYING SENTIMENT AND AVERAGE HOUSEHOLD SIZE
Thai Condo Market OverviewBuyers Willing to Pay Premium Prices for Proximity to BTS
2.29
2.24
2.19
2.14
2.09
1.95
2.00
2.05
2.10
2.15
2.20
2.25
2.30
2.35
40
50
60
70
80
90
Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15
PersonsIndexAverage Household Size Bangkok & Vicinities (RHS)
New Residence Buyer's Confidence Index
Source: Colliers International (Thailand) Source: Colliers International Thailand
Source: Colliers International (Thailand) Source: REIC, University of the Thai Chamber of Commerce
BTS Group General PresentationSection 2.3: Property Business
prepared by Investor Relations departmentBTS Group Holdings PCL
2,975 2,993 3,019 3,231 3,152 3,287
1,6111,907 2,134 2,404
1,9612,475
53.2%
63.5%
70.6%74.4%
61.9%
75.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2010 2011 2012 2013 2014 2015
OccupancyTHB/Night
ADR RevPAR Occupancy Rate
36
INTERNATIONAL TOURIST ARRIVALS
FUTURE BANGKOK HOTEL SUPPLY BY SEGMENTS
BANGKOK HOTEL PERFORMANCE METRICS
THAI BAHT PERFORMANCE TO MAJOR CURRENCIES
Thai Hospitality Industry OverviewPositive Outlook
15.9
19.222.4
26.524.8
29.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2010 2011 2012 2013 2014 2015
Mn of Visitors
Total Tourist Arrivals to Thailand China Malaysia Russia Others
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.020
0.022
0.024
0.026
0.028
0.030
0.032
0.034
0.036
Jan
-10
May
-10
Sep
-10
Jan
-11
May
-11
Sep
-11
Jan
-12
May
-12
Sep
-12
Jan
-13
May
-13
Sep
-13
Jan
-14
May
-14
Sep
-14
Jan
-15
May
-15
Sep
-15
Jan
-16
THBUSD THBEUR THBCNY (RHS)
29,235 31,806
35,028 38,139 40,355 41,961
44,872 47,015 48,255
40%
42%
44%
46%
48%
-
10,000
20,000
30,000
40,000
50,000
2010 2011 2012 2013 2014 2015 2016 2017 2018
Market ShareKeys
Economy Mid-RangeFirst-Class LuxuryMid-Range Market Share (RHS)
Source: Department of Tourism, Ministry of Sports and Tourism Source: CBRE
Source: BloombergSource: CBRE
BTS Group General PresentationSection 2.3: Property Business
prepared by Investor Relations departmentBTS Group Holdings PCL
Property Portfolio and Business StrategySubstantial Development Potential of Assets for Long-Term Value
37
PROPERTY BOOK VALUE BREAKDOWN RESIDENTIAL PROPERTY DEVELOPMENT: JV WITH SANSIRI
Owners Total Area (Rai) Total Area (sq.m)
BTS Group Plc 506.8 810,933.2
Bayswater 24.4 38,999.6
U City Plc 418.8 670,140.8
Total 950.0 1,520,073.6
•Excludes upcountry land bank from BTS of 965.8 Rai (1,545,310.8 sq.m) and U City of 139.2 Rai (222,764.0 sq.m)•Data as of 31 Dec 2015
TOTAL BOOK VALUE:
THB 15.2BN
ATTRACTIVE LAND BANK IN BANGKOK & VICINITIES
BTS Group General PresentationSection 2.3: Property Business
2.1%
23.1%
19.9%6.3%
48.7%
U CityTHB 7.4bn
CommercialTHB 3.5bn
ResidentialTHB 0.3bn
Land BankTHB 3.0bnBTS-Sansiri JV
THB 1.0bn
COMMERCIAL PROPERTY: STRATEGIC STAKE IN U CITY
Establish 50:50 joint venture companies to accommodate the development of new
residential projects for sale along mass transit lines
Target to launch THB 100bn in project value over 5 years with expected NPAT
margin ≈ 12% and equity IRR ≈ 17%
Divested 3 assets to U CITY for total consideration of THB 9.4bn in exchange for
35.64% of total issued shares of U CITY
U CITY is a separately listed vehicle for developing a portfolio of recurring
income-generating assets along mass transit routes
prepared by Investor Relations departmentBTS Group Holdings PCL
Property Business Strategy - BangkokLand: Over 1,100,000m² of Potential Near Mass Transit Lines
38BTS Group General PresentationSection 2.3: Property Business
i
a
b
c
f
d e
g h
j
Projects and Propertiesa. The Line Jatujak – Mochitb. The Line Sukhumvit 71c. The Line Ratchathewid. The Grande. The Royal Place II f. TST Tower Office Buildingg. U Sathorn Hotelh. Thana City Golf & Sports Clubi. Park Ramindra Condoj. Eastin Grand Sathorn Hotel
BTS Group Land Bank
U City Land Bank
New/Extension Lines
Inner City Area
Bayswater Land Bank
Commercial Properties (f-h)
Residential Projects & Properties(a-e)
U City Commercial Properties (j)
U City Residential Projects (i)
Residential Development: 3 JV
project condominiums, totaling
THB 11bn, sold out within the
first two days of sales
Commercial Property
Development: Solid income
generation and land value
multiplier through city life
solutions
Projects and Properties
Land Bank
prepared by Investor Relations departmentBTS Group Holdings PCL
Project Name Presale Period
Project Value
(THB mn)Units
Avg. Price per sqm
(THB)Sold Construction
Progress*Est. Transfer
Start Est. Transfer Completion
Foreign Participation
BTS-SIRI JV
THE LINE Jatujak – Mochit May 2015 5,727 841 179k 100% 16% Dec 2017 Feb 2018 14%
THE LINE Sukhumvit 71 Aug 2015 1,990 291 169k; fullyfurnished
100% 72% Nov 2016 Apr 2017 48%
THE LINE Ratchathewi Oct 2015 2,925 231 266k 100% 8% May 2018 Jul 2018 15%
Total 10,642 1,363 100% 21%
Residential PropertyProjects under Development & Development Pipeline
39BTS Group General PresentationSection 2.3: Property Business
ACTIVE RESIDENTIAL PROJECTS
TOTAL PRESALES BACKLOG
1,822
10,642 5,895
2,925
FY 16/17E FY 17/18E FY 18/19E BTS-SIRI JVPresales Backlog
(THB mn)
Calculated based on 3 launched joint venture projects
Equity method is applied to joint venture transactions
Calculated based on BTS Group’s fiscal year
* As of March 2016
2016 RESIDENTIAL PROPERTY LAUNCH PLAN
Building on our launch momentum:
• Launch 6 Projects with total project value of THB 23bn
prepared by Investor Relations departmentBTS Group Holdings PCL
40
COMMERCIAL PROPERTY REVENUE BREAKDOWN HOTEL PORTFOLIO
BTS Group General PresentationSection 2.3: Property Business
Hotel Name Number of keys Ownership
1. U Sathorn Bangkok 86 100%
2. U Chiang Mai 41 100%
3. U Inchantree Kanchanaburi 24 100%
4. Eastin Grand Sathorn 390 36%*
5. Centara Khon Kaen 195 36%*
6. Anantara Chiang Mai 84 36%*
Blended Averages 11M 2014 11M 2015
Occupancy Rate 77.0% 80.2%
ADR (THB) 2,479 2,660
RevPAR (THB) 1,930 2,159
Gross Margin (%) 49.0% 44.6%
HOTEL PERFORMANCE* BTS Group’s stake in U City
Thana City 33%
U Hotels37%
Others22%
Eastin Grand Sathorn*9%
*Sold to U City on 20 April 2015
9M 15/16 Commercial
Property Revenue:
THB 429mn
1 2 3
4 5 6
2016 COMMERCIAL PROPERTY LAUNCH PLAN
Commercial PropertyA Diversified Portfolio of Recurring Income Generating Assets
Expanding our income base with high quality assets :
• Launch at least 2 projects, including mixed-use Phayathai project
prepared by Investor Relations departmentBTS Group Holdings PCL
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
Contents
41BTS Group General Presentation
prepared by Investor Relations departmentBTS Group Holdings PCL
Services BusinessCurrent Rabbit: Offline Platform and mostly Focused in Bangkok
42
BANGKOK SMARTCARD SYSTEM (BSS)
The E-money service provider with a common ticketing system supporting
BTS and BRT. BSS system also encompass other forms of public
transportation as well as retail, service and tourism sectors.
RABBIT
Use on BTS SkyTrain & BRT
Use in retail stores
5.2mnRabbit cardsin circulation
(as of Mar 2016)
BTS Group General PresentationSection 2.4: Services Business
LARGE PARTNERS NETWORK BUILT
90brand
partners>3,000
RetailsOutlet
acceptant
AIS RABBIT SIM: exclusive NFC contract signed with AIS in Dec 2012
BBL CO-BRANDED DEBIT/CREDIT CARD: officially launched BBL Rabbit Card
and Be 1st Smart Rabbit Card in Mar 2013
AEON RABBIT CARD: launch in Feb 2015. This can be used both the Rabbit
functions (travel on the BTS SkyTrain system and purchase of products and
services at retail stores) and obtain personnel loans from AEONTS.
COMMON TICKETING SYSTEM: in Feb 2015, BTSC, as part of BVS consortium,
won the bid for design and implementation of Central Clearing House (CCH)
system for common ticketing system
KEY MILESTONES FOR THE PAST 4 YEARS
prepared by Investor Relations departmentBTS Group Holdings PCL
Services BusinessRabbit Outlook: Expand to Online Platform & Utilised Data
43BTS Group General PresentationSection 2.4: Services Business
Micro Finance & Financial
Comparison broker
THB 5bn accumulated loan portfolio expected in FY2018/19
“Aim to be the Leading Digital Lifestyle & Payment Services Company in Thailand”
Common Ticketing and Offline Payment
5.2mn Rabbit cards
15mn rabbit cards
expected in 2020
TRANSIT & RETAILS GROWTH PROSPECTS
Online Payment
2mn Rabbit Pay accounts
Targeted in FY2016/17
THB 70mn settlement
value / day expected in FY 2016/17
Online Content&
Digital Media Platform
3mn unique visitors
per month
Rabbit Reward Big Data Customer
prepared by Investor Relations departmentBTS Group Holdings PCL
Thana City Branch
Overview of Services Business
44
Premium Chinese restaurant chain managed by Man Kitchen
4 existing dine-in branches and 3 express branches
Plans underway to develop 6-9 more branches under various formats by
2015
Joint venture originally founded between BTS and HHT Construction, a
major HK contractor
Over 50 years of experience in delivering large complex construction
projects on time and to the quality demanded by discerning clients
Responsible for project management of all BTS Group property projects
Partnership between BTS and experienced management team,
whose track record include Four Seasons Samui & Chiang Rai
& JW Marriott Phuket & Bangkok
Provide hospitality and consultancy services for hotel
development across Asia
Currently manages 3 to 4 star hotels under “U Hotels & Resorts” and
“Eastin Hotels & Residences” brands
Number of hotels 60 80Number of rooms >8,900 10,000Under AHS contracts 2014/15 2015/16E
CHEFMAN RESTAURANTS ABSOLUTE HOTEL SERVICES (AHS)
Eastin Grand Sathorn Branch
Express Branch at Royal Place 2
Royal Place 2 Branch
BTS Group General PresentationSection 2.4: Services Business
prepared by Investor Relations departmentBTS Group Holdings PCL
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
Contents
45BTS Group General Presentation
prepared by Investor Relations departmentBTS Group Holdings PCL
Key financial ratios FY 14/15 FY 13/14 FY 12/13 FY 11/12Profitability ratios (%)
Gross operating profit margin 55.5% 51.4% 48.8% 47.2%SG&A to operating sales ratio 22.0% 19.5% 16.6% 15.8%Accounting EBITDA margin 51.8% 73.% 53.3% 57.8%Operating EBITDA margin(1) 39.9% 36.3% 49.0% 50.7%
Recurring net profit margin (%) 32.8% 25.4% 9.7% 13.2%Liquidity ratio
Current ratio (times) 3.83x 4.36x 5.79x 0.94x
Leverage (Times)
Total liability to total asset 0.22x 0.22x 0.25x 0.45x Total liability to total equity 0.28x 0.29x 0.33x 0.81x Interest bearing debt to equity 0.09x 0.11x 0.24x 0.71xNet debt to equity (0.11)x (0.03)x 0.17x 0.67x Net debt to operating EBITDA (1.96)x (0.65)x 1.66x 6.32x Interest coverage(3) 7.03x 4.94x 4.07x 2.73x
Per share ratios
Book value per share (THB) 4.38 5.09 5.05 4.05Dividend yield (4) 6.38% 7.37% 4.71% 6.38%
FY 14/15 REVENUE & EBITDA CONTRIBUTION BY BU
32%37%
41%
44%
19%
15%8%4%
Revenue Contribution EBITDA Contribution
(1) Operating EBITDA excludes non-recurring items but includes share of profit (loss) from BTSGIF(2) Net income attributable to equity holders of the parent(3) Operating EBITDA/finance cost(4) Interim and Final dividends, calculated on annual basis using BTS TB closing share price on the date
of the Board of Directors’ meeting approving the relevant dividend
REVENUE COMPARISON BY BUSINESS UNIT
46
(THB mn)
2,077 3,121 2,934
399
8,532
2,274 2,926
1,355 548
7,102
Mass Transit Media Property Services Total
FY 13/14 FY 14/15
Property
Mass Transit
Media
Services
Consolidated P&L (THB mn) FY 14/15 FY 13/14 FY 12/13 FY 11/12
Operating revenues 7,102 8,532 10,375 7,720
Operating expenses 3,163 4,147 5,317 4,077
Non-recurring items 520 10,971 897 1,189
EBITDA 4,937 10,334 6,186 5,344
Operating EBITDA(1) 2,836 3,100 5,081 3,913
Net income(2) 2,944 12,598 1,719 2,106
Debt Information (THB mn) 31 Mar 15 31 Mar 14 31 Mar 13 31 Mar 12
Interest bearing debt 4,556 6,655 11,961 26,047
Net debt (5,556) (2,013) 8,447 24,714
BTS Group General PresentationSection 3: Financial Summary
BTS Group Financial Performance
prepared by Investor Relations departmentBTS Group Holdings PCL
39,368 40,809
37,343 26,003
31-Mar-14 31-Mar-15
59,542 52,012
8,612 8,004
8,557 6,795
31-Mar-14 31-Mar-15
THB mn
Registered Capital (15,913.1mn shares @ THB 4.0)
63,653
Issued and paid-up (11,919.3mn shares @ THB 4.0)
47,677
Others 3,860
Retained earnings (Deficits) 475
Total Shareholders’ Equity 52,012
TypeOutstanding
warrants (mn)
Exercise ratio (warrant : share)
Exercise price (THB)Outstanding shares
reserved for warrants (mn)
% Dilution
BTS-WA 6.2 1 : 0.166* 4.220* 0.8 0.0%
BTS-WB 11.1 1 : 1 5.01 11.1 0.1%
BTS-WC 16.0 1 : 1 To be determined 16.0 0.1%
BTS-W3 3,971.6 1 : 1 12.00 3,971.6 25.0%
Total 3,999.6 25.1%
SHAREHOLDERS’ EQUITY
ASSSETS BREAKDOWN (THB MN) LIABILITIES AND EQUITY BREAKDOWN (THB MN)
76,757 66,812
Non-current assets
Current assets
as of 13 Oct 2015
Balance Sheet
47
* Adjusted under the conditions as stated in the terms and conditions of the warrants
DILUTION IMPACT
as of 31 Mar 2015
ESOP
Current liabilities
Non-current liabilities
76,757 66,812
Equity
49%
51%
39%
61%
11%
78%
11%
10%
78%
12%
BTS Group General PresentationSection 3: Financial Summary
prepared by Investor Relations departmentBTS Group Holdings PCL
2016/17 BTS Group Targets and CAPEX
48BTS Group General PresentationSection 3: Financial Summary
4,100
200
1,000
180
300
500
1,200
Mass Transit Media Property Services BTS Group
Thana City renovation
• 5-6% Ridership Growth
• 1% Average Fare Increase
• 3-4% O&M Revenue Growth
BTS GROUP CAPEX (THB mn)
FY16/17 TOTAL CAPEX** THB 7.6BN
*assumes consolidates MACO from Jun 2016 onwards **excludes real estate development cost for Property business
2016/17 BTSGIF CAPEX is expected to be approx. THB 490mn (not included in BTS Group CAPEX)
BTS GROUP TARGETS
MASS TRANSIT
MEDIA*
• 50% Revenue Growth
PROPERTY
• THB 620mn Commercial Property Revenue
• THB 60mn Residential Property Revenue
• THB (100)mn Share of Net Loss from BTS-SIRI JVs
SERVICES
• 6.5mn Rabbit Cards in circulation
• Reach to 2,000 retail shops with 4,500 readers
• 3mn Rabbit Rewards Membership
4,280
500
Rolling stocks
Outdoor
Invest in BTS-SIRI JVs
Land acquisition & others
10110
2,700
prepared by Investor Relations departmentBTS Group Holdings PCL
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
Contents
49BTS Group General Presentation
prepared by Investor Relations departmentBTS Group Holdings PCL
Appendix 1: Core Network Concession Agreement Key terms and background
50
BTS SKYTRAIN
BTSC BMA
EXCLUSIVE OPERATION RIGHT
CONCESSIONAGREEMENT
MINISTRY OF
INTERIOR
AUTHORISATION
BTS SKYTRAIN
BTSC BMA
EXCLUSIVE OPERATION RIGHT
CONCESSIONAGREEMENT
MINISTRY OF
INTERIOR
AUTHORISATION
BTSGIFNET REVENUE TRANSFER
AGREEMENT
23 STATIONS, 23.5 KM IN CBD
Connecting Bangkok’s most important business and tourist destinations, serving as the backbone to all Bangkok’s mass transit systems
ALL INVESTMENTS MADE BY BTSC
Including civil works, E&M and trains (except land acquisition) from private sector sources. BTO for civil works, BOT for electrical and mechanical works, including trains
30 YEARS CONCESSION
30 years of concession period ending 4 Dec 2029, approximately 17 years remaining
NO REVENUE SHARING OR CONCESSION FEES FOR BMA
Exclusive right to operate and retain all farebox revenues from BTS SkyTrain System during the period of the concession
SCOPEProcuring, operating and maintaining the mass transit system. BTS has the right to earn revenues from the business related to the BTS Sky Train's system including advertisement, sublicensing and fare collection for 30 years commencing from 5 Dec 1999
EXTENSIONS
BTS must inform the BMA of such intent at least 3 years (< 5 years) prior to the expiration of the Concession Agreement. The extension is subject to the prior approval of the Interior Minister. BTS is granted a ROFR for negotiations with BMA to construct and operate such network extensions or new routes, provided that BTS matches the best price offered by other potential investors.
BTS Group General PresentationAppendix 1: Core Network Concession Agreement
prepared by Investor Relations departmentBTS Group Holdings PCL
23,117 15,000 12,250
50,367
26,727
10,500 12,000
49,227
4,255 5,958 2,400
12,613
6,847
Dark Green South(Bearing - Samut
Prakarn)
Dark Green North (MoChit - Saphan Mai - Khu
Khot)
Pink Line (Kae Rai -Min Buri)
LRT (Bang Na -Suvarnabhumi)
Light Green line (BangWa - Borommaratcha-
chonnani)
Grey Line(Watcharaphon -
Thong Lo)
Gov't responsibility Rolling Stock E&M Civil works
Appendix 2: Funding Requirements (Mass Transit)BTS Pipeline
51
PROJECTED CAPEX BREAKDOWN OF 6 EXPECTED FUTURE LINES (THB mn)
KEY ASSUMPTIONS
Total CAPEX for 6 lines = THB 112.2bn
with D/E Ratio = 2.0 : 1
Total equity required by BTS Group = THB 37.4bn
Source: Office of Transport and Traffic Policy and Planning (OTP), Mass Rapid Transit Authority of Thailand (MRTA) and Company estimates
112,207
24,25025,500
56,691
12.8km 18.4km
36.0km
18.3km
7.0km
16.3km
108.8km
BTS Group General PresentationAppendix 2: Future Funding Requirements (Mass Transit)
prepared by Investor Relations departmentBTS Group Holdings PCL
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
Reimburse from gov't (civil) E&M Civil works Farebox revenue
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
Rolling stocks Investment O&M revenue
Appendix 2: Funding Requirements (Mass Transit)Economic profile of O&M Contract & PPP Net Cost
52
ECONOMIC PROFILE (O&M CONTRACT)
ECONOMIC PROFILE (PPP NET COST)
KEY ASSUMPTIONS
KEY ASSUMPTIONS
1) 30-year contract from operating date
2) O&M revenue of THB 141mn/km in FY 16/17 with growth rate of 3.5% p.a.
3) EBITDA margin of 40%YEAR
YEAR
1) 3 year investment in civil and E&M works (includes rolling stock)
2) Assume 10-year repayment from gov’t for civil works
3) Receive farebox revenue (30-year contract from operating date)
BTS Group General PresentationAppendix 2: Future Funding Requirements (Mass Transit)
prepared by Investor Relations departmentBTS Group Holdings PCL
Appendix 3: BTS-W3 Term Sheet
53
TICKER BTS-W3
TERMS 5 YEARS
ISSUE DATE 1 NOV 2013
EXPIRY DATE 1 NOV 2018
EXERCISE PERIODQUARTERLY STARTING FROM DEC 2016 TO SEP 2018 WITH THE LAST EXERCISE DATE ON 1 NOV 2018 (TOTAL 9 TIMES)
WARRANT PRICE -
ALLOCATION TO EXISTING SHAREHOLDERS AT THE RATIO OF 3 EXISTING BTS SHARES : 1 BTS-W3
NO. OF WARRANTS 3,944,626,464 UNITS
EXERCISE RATIO 1 BTS-W3 TO 1 NEW COMMON SHARE OF BTS
EXERCISE PRICE THB 12.00 PER SHARE
EXPECTED MAXIMUM
PROCEEDSTHB 47,336MN
WARRANTS TERMS AND CONDITIONS
BTS Group General PresentationAppendix 3: BTS-W3
prepared by Investor Relations departmentBTS Group Holdings PCL
Appendix 4: BTSC’s Quality Management System
54
OCCUPATIONAL HEALTH AND SAFETY ZONE CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV).
OHSAS 18001 : 2007
QUALITY MANAGEMENT SYSTEMS CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV).
ISO 9001 : 2008
LLOYDS REGISTER RAIL’S BEST PRACTICE MODEL IMPLEMENTATION.
LLOYDS REGISTER RAIL
ISO 14001: 2004
ENVIRONMENTAL MANAGEMENT SYSTEMS CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV).
BTS Group General PresentationAppendix 4: BTSC’s Quality Management System