BTS Group Holdings PCL - listed...

prepared by Investor Relations departmentBTS Group Holdings PCL

GENERAL PRESENTATIONFEBRUARY 2016

BTS Group Holdings PCL

BTS Group General Presentation


IR Contacts


This document has been prepared and distributed by the Investor Relations Department of BTS Group Holdings Plc. (“BTSG”) solely for informationpurposes. It does not represent or constitute an offer, invitation, recommendation or solicitation to trade shares in BTSG and should not be relied on as such. Some ofthe information in this document has not been independently verified, and also includes information made available from public sources and other third party opinionor analyst. BTSG does not monitor or control the content of third party opinion or statements and does not endorse or accept any responsibility for the content or theuse of any such opinion or statements. Thus, BTSG assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of theinformation described herein. None of BTSG or any of its agents, or all of their respective affiliates, or representatives shall have any liability (in negligence orotherwise) for any loss howsoever arising from any use of this document or its contents or otherwise 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 theinformation. Certain statements in this document may be deemed to contain forward-looking statements, including the statements included or incorporated with thewords "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that havebeen constructed as statements as to future performance or events. These forward-looking statements are not guarantees of future performance and involve risksand uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made.Thus, BTSG assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the forward-looking statements. BTSGundertakes 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

2


Contents


Section 1 BTS Group Holdings PCL

Section 2 Group Profile

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


BTS Group History

BTS Group General PresentationSection 1: BTS Group Holdings PCL

Company established as Tanayong Co., Ltd. to operate in property development field

Tanayong listed on The Stock Exchange of Thailand under Property Development sector

Tanayong established a wholly-owned subsidiary, Bangkok Transit System Corporation Ltd. (BTSC), which won the SkyTrainconcession bid

Commercial operation of the BTS SkyTrain began

BTSC exit court supervised rehabilitation procedure

BTSC expanded into Media business through the acquisition of 100% of VGI Global Media Co., Ltd.

Tanayong 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

1968 1991 1992 2008 20091999 2010 2012 2013

MAY: BTSC signed a 30-year operating & maintenance (O&M) contract covering all Green Line extensions under the purview of the Bangkok Metropolitan Administration (BMA)

OCT: The Group’s Media subsidiary, VGI Global Media PCL, listed on The Stock Exchange of Thailand

APR: BTSC sold the future Net Fare-box Revenue under its Concession Agreement to BTS Rail Mass Transit Infrastructure Fund (BTSGIF)

4


75%

50%

50%

50%

51%

80%

100%

100%

100%

100%

50%

50%

50%

50%

50%

100%

100%

100%

100%

100%

100%

100%

11.11%

50%

50%

50%

50%

50%

50%

100%

100%

CARROT REWARDS CO., LTD.

70%

100%

100% TANAYONG HONG KONG LTD.

LITTLE CORNER CO., LTD.

MAN KITCHEN CO., LTD.

100%

24.96%

Shareholding Structureas of 30 December 2015

1 Information based on the book closure date as at 30 Oct 15 with total issued shares = 11,929.3mn shares2 BTSG holds 74.3% of VGI indirectly and directly

OTHERS

2.5%, 407.7 mn shares

BTSGIF

33.3%

KANJANAPAS FAMILY OTHERS

BTSC

MASS TRANSIT MEDIA PROPERTY SERVICES

INSTITUTIONAL INVESTORS

23.3%2

41.0%1 34.3%1 24.7%1

BTS GROUP

97.46%

VGI GLOBAL MEDIA PCL

ABSOLUTE HOTEL SERVICES CO., LTD.

BANGKOK SMARTCARD SYSTEM CO., LTD.

90%

51.0%

VGI ADVERTISING MEDIA CO., LTD.

888 MEDIA CO., LTD.

MASTER AD PCL

100%

100%

100%

DNAL CO., LTD.

TANAYONG INTERNATIONAL LTD.

ABSOLUTE HOTEL SERVICES HONG KONG LIMITED

100%

75.47%

Listed entities

12.26%

5

AERO MEDIA GROUP CO., LTD.

POINT OF VIEW (POV) MEDIA GROUP CO., LTD.

20%

BTS LAND CO., LTD.

PRANNAKIRI ASSETS CO., LTD.

BAYSWATER CO., LTD.

HHT CONSTRUCTION CO., LTD.

BTS SANSIRI HOLDING ONE LTD.

35.64%

Subsidiaries

Associates


BTS SANSIRI HOLDING TWO LTD.

RABBITPAY SYSTEM CO., LTD.

PRIMARY KITCHEN CO., LTD.

60%

SIAM PAGING AND COMMUNICATION

CO., LTD.

MUANGTHONG ASSETS CO., LTD.

TANAYONG PROPERTY MANAGEMENT CO., LTD.

TANAYONG FOOD & BEVERAGE CO., LTD.

U CITY PCL

YONGSU CO., LTD.

MAK8 CO., LTD.

THANA CITY GOLF & SPORTS CLUB CO., LTD.MIDAS GLOBAL MEDIA

CO., LTD.

51%

BANGKOK PAYMENT SOLUTIONS CO., LTD.

BSS HOLDINGS CO., LTD.

BTS SANSIRI HOLDING THREE LTD.

BTS SANSIRI HOLDING FOUR LTD.

BTS SANSIRI HOLDING FIVE LTD.

BTS SANSIRI HOLDING SIX LTD.

BTS SANSIRI HOLDING SEVEN LTD.

NUVO LINE AGENCY CO., LTD.

UNICORN ENTERPRISE CO., LTD.

KEYSTONE ESTATE CO., LTD. BTS SANSIRI HOLDING

NINE LTD.

BTS SANSIRI HOLDING EIGHT LTD.

100%

RATBURANA PROPERTY CO., LTD.

KINGKAEW ASSETS CO., LTD.

THE COMMUNITY ONE CO., LTD.

THE COMMUNITY TWO CO., LTD.

100%

100%

100%BTS SANSIRI HOLDING

ELEVEN LTD.

BTS SANSIRI HOLDING TWELVE LTD.

ATS RABBIT SPECIAL PURPOSE VEHICLE CO., LTD.

ASK DIRECT GROUP CO., LTD.

ASK BROKER ASSOCIATION CO., LTD.

ASK HANUMAN CO., LTD.

51%

51%

25%


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

BTS Group Overview4 Business Units


MASS TRANSIT

PROPERTY

MEDIA

SERVICES

(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

Historical operating revenues(1)

Media Revenue(2) (THB mn)

Property Revenue (THB mn)

Services Revenue(3) (THB mn)

Mass Transit Revenue (THB mn)

39%

34%

15%

12%

Revenue contribution

32%

41%

19%

8%

FY 14/15 9M 15/16

FY 14/15 9M 15/16

FY 14/15 9M 15/16

FY 14/15 9M 15/16

6

*O&M Revenue: THB 1,184mn; Share in BTSGIF: THB 650mn


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

BTSG at a Glance


KEY FIGURES (as of 31 Mar 2015)

EMPLOYEES (as of 31 Mar 2015)

PROGRESSIVE DIVIDEND POLICY

SHARE INFORMATION (as of 31 Mar 2015)

STOCK CODE BTS

OUTSTANDING SHARES (MN SHARES) 11,919.3

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

*Source: Bank of Thailand, based on weighted-average Interbank Exchange Rate of USD 1 = THB 32.548 as of 28 May 2015

**to equity holders of the parent

Minimum THB 21bn committed dividends over 3 years

No less than THB 6bn in 2013/14



Not less than 50% of net profit (stand alone basis)

7

MASS TRANSIT 2,039MEDIA 466

PROPERTY 918SERVICES 505

BTS GROUP HOLDINGS 72

TOTAL 4,000


Investment Highlights


“BENEFICIARY FROM MASS TRANSIT DEVELOPMENT AND MASS TRANSIT EXPANSION ACROSS ALL OF OUR BUSINESS UNITS”

SHAREHOLDER RETURN

HIGH DIVIDEND YIELD: 3-year progressive dividend policy with minimum committed amount of THB 21bn

SECURE BUSINESS: underlying concession with advertising rights on BTS until 2029; O&M contract until 2042

OPPORTUNITIES

STRONG FINANCIAL POSITION: BTS Group has excess cash and liquid investments of THB14.66bn

FUTURE MASS TRANSIT LINES: potential developer and operator of future mass transit lines and extensions

EXPANSION OF FRANCHISE: expansion of VGI Global Media franchise to new extension lines and other markets

8


1,329

1,2351,750

2012/13 2013/14 2014/15

1,030

2,563 2,820

2012/13 2013/14 2014/15

(THB mn)

NET RECURRING PROFIT

10.0%

Key Developments 2014/15


9

CAPEX

41.7%(THB mn)

DIVIDEND YIELD / DIVIDEND PAYMENT

Dividend yield of 6.4%(THB mn)

4,359

7,073 7,095

2012/13 2013/14 2014/15

Reduction in finance costs

7.4% 6.4%

4.8%

Committed dividend payment (at least THB 21bn over 3 years)

SHARE REPURCHASE PROGRAMME

In Aug 2014, BoD approved a share repurchase programme

• not exceeding THB 6bn (or 5% of total issued shares)

• Repurchase period: 25 Aug 2014 until 24 Feb 2015

• In conclusion: the Company repurchased 0.8% of total issued shares (avg price = THB 9.65 / share), totaling THB 925.2mn


Contents









Appendices



Appendix 3: BTS-W3


10


THB 1.5bn

> THB 14bn

2014 2020 TARGET

12.8 km

121.6 km

2014 2020 TARGET

≈9.5x

≈9.5x

11

BTS Group Vision 2020

BTS Group General PresentationSection 2.1: Mass Transit Business

“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


12

Role of BTS Group in Mass TransitInvestor, Operator, Developer, Concessionaire

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 16-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)16 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



13

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 35.1 Singapore 32.4 Tokyo 24.1 Bangkok 8.0

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

13BTS Group General PresentationSection 2.1: Mass Transit Business

*Includes MRTA and BMA projects


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


BTS Group: INVESTOR in BTSGIF (Core Network)Prime position to capture growth from Network Expansion

*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

I

DARK GREENMO CHIT – ON NUT17.0km

LIGHT GREENNATIONAL STADIUM -SAPHAN TAKSIN6.5km



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

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

I

May 09: Opening of Silom Line 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


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

BTS Group: INVESTOR in BTSGIF (Core Network) Flexibility to increase fares

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)

I

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

2005/062006/072007/082008/092009/102010/112011/122012/132013/142014/15


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 (%)

18

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

Core Network Performance Efficient operation; further scope for cost efficiency


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 2014/15

Major overhaul expenses General maintenance expense

(THB mn)OTHERS, 7%


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

BTSGIF Investment Core Concession for BTS Core SkyTrain NetworkAmple capacity with limited Capex for concession period

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


BTSC is the OPERATOR of the Core NetworkThailand’s most experienced Operator

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 SkyTrainsystem 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

O



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

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)

O


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%


LINE ROUTEAUTHORISING

BODYOPERATE YEAR

CONSTRUCTIONPROGRESS

DISTANCE (KM)

PURPLE BANG YAI - BANG SUE MRTA 2016 UNDER CONSTRUCTION 23.0

BLUE HUA LAMPHONG - BANG KHAE MRTA 2017 UNDER CONSTRUCTION 14.0

BLUE BANG SUE - THA PRA MRTA 2017 UNDER CONSTRUCTION 13.0

DARK RED BANG SUE - RANGSIT SRT 2017 UNDER CONSTRUCTION 26.3

DARK GREENSOUTH

BEARING - SAMUT PRAKARN MRTA 2019 UNDER CONSTRUCTION 12.8

DARK GREENNORTH

MO CHIT – SAPHAN MAI – KHU KHOT MRTA 2020 UNDER CONSTRUCTION 18.4

LIGHT GREEN BANG WA - BOROMMARATCHACHONNANI BMA 2019 7.0

LRT BANG NA - SUVARNABHUMI BMA 2019 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

D

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: Potential DEVELOPER of Mass Transit extensionsBTSG well-positioned for new contracts

D

*See Appendix 2 for details of CAPEX requirements


BTSG is WELL-POSITIONED FOR NEW CONTRACTS

Relevant expertise Financial strength Green line advantage

New contracts are expected to be on a ‘PPP GROSS COST BASIS’

Operator to invest in E&M works with repayment from government

Operator given operation contract

Variations will be considered

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: 3.2% (as of Jan 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: 77.3% (as of Jan 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


With 6 distinctive advantages, we are in very good position to achieve our vision

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



Contents









Appendices



Appendix 3: BTS-W3


25


TV62%

Newspapers13%

Cinema4%

Radio5%

Magazines5%

Outdoor4%

Transit4%

In-Store2%

Internet1%

Source: The Nielsen Company (Thailand) Limited

Thai Media Market Overview – FY 14/15 Historical Thai Ad Expenditures (THB bn)

Top 10 Ad Spending by Segments

Industry CAGR

1.9%

OOH CAGR

8.4%

Overview of Media Business

Note: Excludes classified ads, house ads, digital and cable TV

Source: The Nielsen Company (Thailand) LimitedNote: Excludes classified ads, house ads, digital and cable TV

26BTS Group General PresentationSection 2.2: Media Business

Traditional CAGR-2.2%

Note: VGI discontinued operations in Modern Trade Media effective 1Q 15/16

89.8 92.6 103.5 105.4

114.1 110.9 101.6

08/09 09/10 10/11 11/12 12/13 13/14 14/15

27.4 26.2 26.9 26.4 27.0 26.4 23.5

6.5 6.6 7.4 8.7 10.5 10.2 9.8

08/09 09/10 10/11 11/12 12/13 13/14 14/15

Note: Out-of-Home Media = Outdoor, Transit and In-StoreTraditional Media = Radio, Newspapers and MagazinesSource: The Nielsen Company (Thailand) Limited

OVERALL MEDIA INDUSTRY

1 FMCG 40%

2 MOTOR VEHICLES 8%

3 COMMUNICATIONS 7%

4 GOVERNMENT & COMMUNITY ANNOUNCEMENT 6%

5 LEISURE 5%

6 MEDIA & MARKETING 4%

7 RETAIL SHOPS/STORES 3%

8 INSURANCE 3%

9 BANKS 2%

10 REAL ESTATE 2%

MASS TRANSIT MEDIA

1 FMCG 49%

2 COMMUNICATIONS 15%

3 BANKS 6%

4 CREDIT/DEBIT CARDS 5%

5 TRAVEL & TOUR 5%

6 MEDIA & MARKETING 5%

7 RETAIL SHOPS/STORES 4%

8 MOTOR VEHICLES 4%

9 MULTI SECTIONS ADVERTISING 3%

10 REAL ESTATE 3%

Total market value of advertisement industry = THB 101.6bn


53% 61%

47% 39%

FY 13/14 FY 14/15

27

Media Business: Financial PerformanceHigh Margins, No Leverage

Revenues by business unit

Key Financial Ratios

(THB mn)

FY 13/14 FY 14/15

OVERALL 61% 59%

BTS-RELATED MEDIA 88% 83%

OFFICE BUILDING & OTHERS 30% 23%

BTS Group General PresentationSection 2.2: Media Business

BTS-related Media

Office Buildings & Other Media

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

Gross Profit Margin

Operating revenues and Operating EBITDA

FY 13/14 FY 14/15

NET PROFIT MARGIN 36.4% 28.3%

RoA 27.8% 43.1%

RoE 44.3% 60.7%

DEBT-TO-EQUITY N.A. 0.3x

Note: Ratios taken from VGI’s consolidated financial statements


871 1,125

1,379 1,660 1,776

FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15

BTS SkyTrain MediaExclusive rights for the Core BTS SkyTrain Network

BTS Media Revenue (THB mn)

CAGR (4 years) = 19.5%

KEY CONCESSION TERMS

Exclusive rights for 23 stations on Core Network, 7 stations on BTS extension lines & all BTS trains In Trains & On-Stations Merchandising AreaFirst right to renew contract and extend space on additional mass transit projects that BTSC is granted the rights to operate media space

RIGHTS

Core Network: 18 May 2012 – 4 December 2029 7 extension stations: 6 May 2015 – 4 December 2029

EFFECTIVE PERIOD

CONCESSION FEE (PAYABLE TO BTSC)

5% - 20% of total revenues/year (an incremental increase of 5% every 5 years) fixed rate for 7 extension stations

PAST SUCCESS

DIGITAL MEDIA

STATIC MEDIA (ON BTS SKYTRAIN & PLATFORMS)

Platform Truss LED & Platform Screen Door Digital Screen inside the train

Train Body Wrap Cladding

MERCHANDISING SPACE

Merchandising Shop Merchandising Shop

28BTS Group General PresentationSection 2.2: Media Business


29

Office Buildings and Other Media

KEY CONTRACT TERMS

RIGHTS AND LENGTH OF CONTRACT

Office Buildings123 grade A buildings in CBD, 3-5 years contract (avg.)Outdoor LED (Selling Agent)4 locations in Bangkok1 year contract with renewable rightsChulalongkorn University (CU) Bus15 buses and 15 bus-stops1 year contract with renewable rights

LICENSE FEE

Revenue sharing and fixed rates

PAST SUCCESS

Changed to integrated network across all office buildings, increasing sales by 50%

Bundled Office Building Media with the Company’s other media and sold as a package, increasing occupancy and driving sales by 100%

Digital Screen in Elevators Lift Wrap

Rama 9 Junction

Bus Body Wrap Bus Shelter

Pratunam Junction

OFFICE BUILDING MEDIA

CHULALONGKORN UNIVERSITY (CU) BUS

OUTDOOR LED SCREENS



30

Outdoor Media

KEY CONTRACT TERMS

RIGHTS AND LENGTH OF CONTRACT

ACCOUNTING METHOD

Take equity method

SYNERGY

Sales synergies are created by bundling media packages with VGI’s existing network

VGI appointed as exclusive selling agents

Knowledge sharing among highly experienced management team

Billboard Street Furniture

MACO’S MEDIA

MIDAS’ MEDIA


Outdoor Media Expansion into Outdoor Media segment through holdings in

other outdoor advertising companies 24.96% stake in Master Ad PCL (MACO; listed on SET) 20.0% stake in Aero Media Co., Ltd. (Aero Media manages

advertising space across 13 airports under AOT and DCA) 12.4% holdings in Midas Global Media Company Limited (MIDAS;

non-listed)

Transit Media Made-to-Order

LED Lightboxes


Contents









Appendices



Appendix 3: BTS-W3


31


MO CHIT: LAND BANK**

SITE AREA: 25,842SQM

Property Portfolio

PROPERTY BOOK VALUE BREAKDOWN LAND FOR DEVELOPMENT ALONG MASS TRANSIT ROUTE

Location Total Area (Rai) Total Area (sqm)

Bangkok 60.9 97,368.0

Samutprakarn 376.7 602,671.6

Nakorn Ratchasima 661.4 1,058,180.0

Chiang Rai 163.1 260,992.0

Phuket 37.3 59,740.0

Other Provinces 95.2 152,372.0

Total 1,394.6 2,231,323.6

Note: Data as of 30 Sep 2015

32BTS Group General PresentationSection 2.3: Property Business

TOTAL BOOK VALUE:

THB 7.4BN

Land bank THB 2.1bn

CommercialTHB 3.5bn

Residential*THB 1.8bn

LIST OF LAND BANK

EASTIN GRAND HOTEL

PHAYATHAI: LAND BANK

SITE AREA: 10,526 SQM

THANA CITYGOLF & SPORTS CLUB

SITE AREA: 511,712SQM

**Mochit Land: 8,063 sqm was sold to BTS-SIRI JVCo1 and 17,779 sqm was sold to U City

Sold to BTS-SIRI JVCo1

Sold to U City

ABSTRACTS 66/1

ABSTRACTS PHY

*Includes assets reclassified as “held for sale” of THB 1.4bn from Nuvo Line

24.1%

48.0%

27.9%


41 41 41 41 4126 26 26 26

390 390

86

86

Jun 2008 Nov 2010 Oct 2012 Dec 2014 Apr 2015

U Sathorn

Eastin Grand Sathorn

U Inchantree Kanchanaburi

U Chiang Mai

33

Commercial and Residential Property

COMMERCIAL PROPERTY REVENUE BREAKDOWN NO. OF KEYS UNDER HOTEL GROUP

RESIDENTIAL PROPERTY

LOCATION: 250M FROM NEW BTS STATION

SITE AREA: 33,420 SQM (20-3-55 RAI)

LAND TENURE: FREEHOLD

AVERAGE SALE PRICE: THB 76,400 PER SQM

LOCATION: 250M FROM BTS UDOMSUK

SITE AREA: 3,160 SQM (1-3-90 RAI)

LAND TENURE: FREEHOLD

AVERAGE SALE PRICE: 75,000 PER SQM

ABSTRACTS PHAHONYOTHIN PARK ABSTRACTS SUKHUMVIT 66/1

# UNITS GFA(SQM) NFA(SQM)

TOWER A 1,012 62,091 42,818

TOWER B 1,012 62,091 42,818

TOWER C 1,012 62,091 42,818

TOTAL 3,036 189,273 128,455

# UNITS GFA(SQM) NFA(SQM)

THE MOON 56 4,540 2,500

THE SUN 56 4,540 2,500

TOTAL 112 9,080 5,000

TDC: THB 296MN (USD 10MN)TDC: THB 2,527MN (USD 81MN)

DebtTHB 1,697mm USD 54mn

EquityTHB 732mnUSD 24mn

Deposit & Sales proceeds

THB 196mnUSD 6mn

Deposit & Sales

proceedTHB 93mnUSD 3mn

EquityTHB203mnUSD 7mn

BTS Group General PresentationSection 2.3: Property Business

Others

13%Eastin Grand Sathorn

54%U-Hotels

11%

Thana City Golf

22%

FY 14/15 Commercial

Property Revenue:

THB 932mn

“PROJECT COMPLETED”

Total keys

4167

457

543

153

http://www.abstractscitizen.com/p-lnsprtn.php

http://www.abstractscitizen.com/p-lnsprtn.php


34

Property Update – Partnership Approach

SANSIRI TRANSACTION

BTS and SIRI entered into a “STRATEGIC ALLIANCE FRAMEWORK AGREEMENT” (SAFA)

Exclusive partnership to jointly invest and develop residential developments for sale along mass transit stations

Target THB 100bn in project value launched over 5 years

Establish 50:50 joint venture companies to accommodate the development of new residential projects for sale

Divest 3 assets to U CITY for consideration of THB9.4bn in exchange for U CITY shares representing 35.64% of total issued shares of U CITY

Transaction was concluded on 20 April 2015

U CITY is the vehicle for developing a portfolio of income-generating assets along mass transit routes

These transactions enable BTS Group to:1. Recognise gains on sale of assets to the benefit of existing BTS Group shareholders2. Partnered with real estate players with expertise in their respective sectors3. Retain a major economic stake in the development of those assets4. Use only existing assets as equity without the need for further capital investment

U CITY TRANSACTION

For detailed information on the transactions, please refer to our Strategic Partnership for City Living presentation at: http://bts.listedcompany.com/misc/presentation/20141017-bts-property-strategy.pdf


http://bts.listedcompany.com/misc/presentation/20141017-bts-property-strategy.pdf


35

Property UpdateBTS-Sansiri Projects Launched in 2015


Project NameTHE LINE

Jatujak - MochitTHE LINE

Sukhumvit 71THE LINE

Ratchathewi

Distance from mass transit station

300m from BTS Mo chit

400m from BTS Prakanong

220m from BTS Ratchathewi

Project value THB 5.7bn THB 2.0bn THB 2.9bn*

No. of units 841 (43 floors) 291 (28 floors) 231 (38 floors)

Avg. selling price per sqm THB 179k THB169k; fully furnished

THB 266k*

Land Area (Rai) 4-2-95.7 1-3-54.4 1-2-12

Intl. Roadshow / Domestic Presales

Construction Starts

Construction Completion

Aug 2015

May 2015

Jan 2017

Nov 2016

Apr 2017

Transfer Starts

Transfer Completion

Oct 2015

Jan 2016

May 2018

May 2018

Jul 2018

May 2015

Mar 2015

Jan 2018

Dec 2017

Feb 2018

Target project value revised up to THB 100bn (from THB 25-30bn) to be developed over 5 years under the “Strategic Alliance Framework Agreement”

Approximately THB 11bn in project value launched in 2015 Expected equity IRR ≈ 17% and NPAT margin ≈ 12%

*Approximate figures


Contents









Appendices



Appendix 3: BTS-W3


36


37

Overview of Services Business

BANGKOK SMARTCARD SYSTEM (BSS)

BTS Group General PresentationSection 2.4: Services Business

TOP-UP CHANNELS

BTS TicketOffices

McDonald’s

AIS Kiosks

Auto Top-up w/ Co-branded

Cards

Over-the-Air

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

>80brand

partners

• Use with mobile devices supporting NFC technology

• Use on BTS SkyTrains & BRT

• Use in retail stores

Mini Mart Food Court

BRT TicketOffices

4.9mnRabbit cardsin circulation

(as of Dec 2015)


Thana City Branch

38

Overview of Services Business

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)

BTS Group General PresentationSection 2.4: Services Business

Eastin Grand Sathorn Branch

Express Branch at Royal Place 2

Royal Place 2 Branch


Contents









Appendices



Appendix 3: BTS-W3


39


FY 14/15 REVENUE & EBITDA CONTRIBUTION BY BU

32%46%

41%

47%

19%

6%8%1%

Revenue Contribution EBITDA Contribution

BTSG Financial Performance

(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

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

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%

REVENUE COMPARISON BY BUSINESS UNIT

40BTS Group General PresentationSection 3: Financial Summary

(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

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


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 sharesreserved 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

41BTS Group General PresentationSection 3: Financial Summary

* Adjusted under the conditions as stated in the terms and conditions of the warrants

Balance Sheet

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%


2015/16 BTS Group Targets and CAPEX

BTS GROUP CAPEX (THB mn)

*excludes BTS Assets’ revenues **excludes real estate development cost for Property business

MEDIA

26% Revenue Contraction (excl. Modern Trade Media)

PROPERTY

THB 620mn Residential Property Revenue

THB 590mn* Commercial Property Revenue

MASS TRANSIT

4 – 6% Ridership Growth

2% Average Fare Increase

3% O&M Revenue Growth

2015/16 BTSGIF CAPEX is expected to be approx. THB 280mn (not included in BTS Group CAPEX)

42

BTS GROUP TARGETS

SERVICES

5.0mn Rabbit Cards in circulation

6-9 additional ChefMan branches

BTS Group General PresentationSection 3: Financial Summary

105

270

1,220

305

10

Masstransit

Media Property Services BTS Group

FY 15/16 TOTAL CAPEX**: THB 1,910MN


Contents









Appendices



Appendix 3: BTS-W3


43


Appendix 1: Core Network Concession Agreement Key terms and background

BTS Group General PresentationAppendix 1: Core Network Concession Agreement

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.

44


18,849 15,000 12,250

46,099

9,129 20,056

23,152

10,500 12,000

74,837

-

-

-

-

2,400

-

2,400

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 - Taling Chan)

Grey Line(Watcharaphon -

Rama 4)

Total

Rolling Stock E&M Civil works

Thong Lo)

Appendix 2: Future Funding Requirements (Mass Transit)BTS Pipeline

BTS Group General PresentationAppendix 2: Future Funding Requirements (Mass Transit)

PROJECTED CAPEX BREAKDOWN OF 6 EXPECTED FUTURE LINES (THB mn)

KEY ASSUMPTIONS

Total CAPEX for 6 lines = THB 123.3bn

with D/E Ratio = 1.5 : 1

Total equity required by BTS Group = THB 49.3bn

Source: Office of Transport and Traffic Policy and Planning (OTP), Mass Rapid Transit Authority of Thailand (MRTA) and Company estimates

123,336

24,25025,500

42,001

9,129

20,056

2,400

45

Borommaratcha-chonnani)

12.8km

18.4km

36.0km

18.3km

7.0km

16.3km

108.8km


(6,734)

(3,946)

(2,570) (2,581)

(395) (349) (302) (256) (209) (163) (116) (70) (23)

2,119 2,100 2,027 1,953 1,879 1,806 1,732 1,658 1,584

1 2 3 4 5 6 7 8 9 10 11 12 13

E&M Interest expense Reimburse from Gov. Interest Income from Gov.

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

Appendix 2: Future Funding Requirements (Mass Transit)PPP Gross Cost (E&M only) – Dark Green North (Mochit – Saphan Mai)

BTS Group General PresentationAppendix 2: Future Funding Requirements (Mass Transit)

THB mn

FINANCING AND REPAYMENT OF E&M

O&M REVENUE

KEY ASSUMPTIONS

1) 3 to 4-year investment period2) 10-year repayment from govt.3) Interest rate (neutral)4) D/E of 1.5x

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%4) Tax holiday of 8 years

YEAR

YEAR

1,511

46


Appendix 3: BTS-W3 Term Sheet

BTS Group General PresentationAppendix 3: BTS-W3

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

47



BTS Group General PresentationAppendix 4: BTSC’s Quality Management System

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).

48

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