BTS Group Holdings PCL

Transcription

1 General Presentation November 2016

2 IR Contact Address: IR Department 15 th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd. Chomphon, Chatuchak, Bangkok, Thailand Telephone: +66(0) Fax: +66(0) Website: Disclaimer This document has been prepared and distributed by the Investor Relations Department of ( BTSG ) solely for information purposes. 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 of the information in this document 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 or control 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, BTSG assumes 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, or all 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 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 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 statements as to future performance or events. These forward-looking statements are not guarantees of future performance and involve risks and 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. BTSG undertakes no obligation to publicly update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. 2

3 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 BTS Group in Brief Business Segment Profiles Mass Transit Business Media Business Property Business Services Business 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

4 BTS Group History 1968 Company established as Tanayong Co., Ltd. (TYONG) to operate in property development field 1992 TYONG established a wholly-owned subsidiary, Bangkok Transit System Corporation Ltd. (BTSC), which won the SkyTrain concession bid 2008 BTSC exit court supervised rehabilitation procedure 2010 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) APR 2013 BTSC sold the future Net Fare-box Revenue under its Concession Agreement to BTS Rail Mass Transit Infrastructure Fund (BTSGIF) TYONG listed on the Stock Exchange of Thailand under Property Development sector 1991 Commercial operation of the BTS SkyTrain commenced 1999 BTSC expanded into Media business through the acquisition of 100% of VGI Global Media Co., Ltd. (VGI) 2009 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 VGI Global Media PCL, the Group s Media subsidiary, listed on the Stock Exchange of Thailand OCT 2012 Section 1: BTS Group in Brief 4

5 Shareholding Structure as of 31 August Information based on book closure date on 2 Aug 16 with total issued shares = 11,934.9mn shares 2 BTSG holds 69% of VGI indirectly and directly 3 Revenue from the Company recorded under Services BU 41% Kanjanapas Family 1 34% Institutional Investors 1 25% Individual Investors 1 MASS TRANSIT BUSINESS MEDIA BUSINESS PROPERTY BUSINESS SERVICES BUSINESS 97.46% Bangkok Mass Transit System PCL (BTSC) 51% 19.30% VGI Global Media PCL (VGI) 2 U City PCL 35.64% 100% Unicorn Enterprise Co., Ltd. 100% 100% Tanayong International Ltd. Tanayong Hong Kong Ltd % BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF) LEGEND Listed entities Subsidiaries Associates JVs 100% 100% 100% 37.42% 30% VGI Advertising Media Co., Ltd. 888 Media Co., Ltd. Point of View (POV) Media Group Co., Ltd. Master Ad PCL Aero Media Group Co., Ltd. 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 51% 50% Ratburana Property Co., Ltd. Kingkaew Assets Co., Ltd. Nine Square Property Co., Ltd. Keystone Estate Co., Ltd. PrannaKiri Assets Co., Ltd % The Community One Co., Ltd. The Community Two Co., Ltd. Thana City Golf & Sports Club Co., Ltd. Yongsu Co., Ltd. Mak8 Co., Ltd. HHT Construction Co., Ltd. 3 Absolute Hotel Services Co., Ltd % 100% 100% 100% 50% Siam Paging and Communication Co., Ltd. DNAL Co., Ltd. Muangthong Assets Co., Ltd. BTS Land Co., Ltd. 100% Tanayong Food and Beverage Co., Ltd. 100% Tanayong Property Management Co., Ltd. 50% Bayswater Co., Ltd. BTS Sansiri Holding One Limited 50% BTS Sansiri Holding Two Limited 50% BTS Sansiri Holding Three Limited 50% 50% 50% 50% 50% 50% 50% 50% 50% BTS Sansiri Holding Four Limited BTS Sansiri Holding Five Limited BTS Sansiri Holding Six Limited BTS Sansiri Holding Seven Limited BTS Sansiri Holding Eight Limited BTS Sansiri Holding Nine Limited BTS Sansiri Holding Eleven Limited BTS Sansiri Holding Twelve Limited Nuvo Line Agency Co., Ltd. 100% 100% 100% Absolute Hotel Services 12.26% Hong Kong Ltd. 3 90% 50% BTS Sansiri Holding Fourteen Limited 100% 70% 80% 51% 51% 25% Rabbit Rewards Co., Ltd. Primary Kitchen Co., Ltd. BSS Holdings Co., Ltd. 50% RabbitPay System Co., Ltd. Rabbit-Line Pay Co., Ltd. 51% ATS Rabbit Special Purpose Vehicle Co., Ltd. 69% KMJ 2016 Co., Ltd.. 100% Man Food Products Co., Ltd. 60% ASK Direct Group Co., Ltd. Rabbit Insurance Broker Co., Ltd. Rabbit Internet Co., Ltd. Bangkok Payment Solutions Co., Ltd. Man Kitchen Co., Ltd. Little Corner Co., Ltd. Bangkok Smartcard System Co., Ltd. Section 1: BTS Group in Brief 5

6 Synergistic Business Strategy across all our businesses MASS TRANSIT Sole concessionaire and operator of the BTS SkyTrain Core Network, its extensions and Bus Rapid Transit system MEDIA 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 Residential and commercial property projects along rail mass transit route with a portfolio of land bank for future real estate development PROPERTY E-money service provider for common ticketing system that can be used across mass transit systems and retail stores SERVICES Section 1: BTS Group in Brief 6

7 Investment Highlights Prime beneficiary from mass transit network expansion across all our businesses 11.8x BKK mass transit extensions & new lines coverage 8.9x mass transit revenue MASS TRANSIT MEDIA 4x expected increase in BTS train capacity 4x expected increase in BTS extension stations capacity MASS TRANSIT NETWORK EXPANSION Real estate development along mass transit worth THB 100bn in 5 years PROPERTY SERVICES Leading digital lifestyle & payment service company with >10mn users Section 1: BTS Group in Brief 7

8 BTS Group Overview 4 Business Units MASS TRANSIT MEDIA PROPERTY SERVICES (1) FY ended 31 March FY 12/13 FY 13/14 FY 14/15 FY 15/16 (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 Section 1: BTS Group in Brief 6,016 1, Historical operating revenues (1) Mass Transit Revenue (THB mn) 2,077 2,274 2,441 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Media Revenue (2) (THB mn) 2,795 3,121 2,926 2, , ,069 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Property Revenue (THB mn) 896 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Services Revenue (3) (THB mn) 741 Revenue contribution (FY 15/16) 40% *O&M Revenue: THB 1,593mn; Share in BTSGIF: THB 847mn 34% 15% 12% Operating EBITDA margin FY 15/16 65% FY 15/16 64% FY 15/16 10% FY 15/16-3% 8

9 BTSG at a Glance PROGRESSIVE DIVIDEND POLICY Completed 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 Current Policy: Not less than 50% of net profit (stand alone basis) HISTORICAL DIVIDEND PAYMENTS / DIVIDEND YIELD Actual dividend paid (THB mn) Dividend yield* (%) 6.5% 2, % 4,359 7,073 7,094 8, / / / / /16 Section 1: BTS Group in Brief 7.3% Committed dividend period 6.2% 7.8% * Calculated based on share price one day before the Board of Directors approval date for relevant dividend payment KEY FIGURES (as of 31 Mar 2016) EMPLOYEES (as of 31 Mar 2016) THB (mn) BTS Group Holdings 129 Mass Transit 2,144 Media 236 Property 476 Services 767 Total 3,752 USD (mn)** Operating revenue 6, Operating EBITDA 2, Net income*** 4, Total assets 66,811 1,896 Excess cash and liquid investments 16, Cash 2, Current investments 3, Long-term investments 9, Restricted deposits 1, Free cash flow (7,815) (222) **Source: Bank of Thailand; based on Interbank Exchange Rate of USD 1 = THB as of 28 May 2015 ***to equity holders of the parent 9

10 BTS Group Share Information SHARE INFORMATION (as of 31 May 2016) Stock code BTS Outstanding shares (mn shares)* 11,833.5 Treasury shares (mn shares)* 0.0 Market capitalisation (THB mn) 108,557.1 Market capitalisation (USD mn) 3,034.9 Average daily traded value (THB mn) Average daily traded value (USD mn) 5.3 * As of 14 June 2016 SHARE PRICE MOVEMENT (as of 31 May 2016) SHARE STRUCTURE (as of 14 Jun 2016) Kanjanapas family 41.0% BTS Group treasury shares 0.8% Institutional investors 32.7% Others 25.5% Free float 57.3% Foreign limit 49.0% TOP 10 SHAREHOLDERS (as of 14 Jun 2016) THB BTS Turnover (RHS) BTS TB SET Index (rebased) 12M ADTV = THB 257mn THB mn 1,400 1,200 1, Name % 1 MR. KEEREE KANJANAPAS S GROUP 41.3% 2 THAI NVDR CO., LTD. 8.8% 3 BANGKOK BANK PUBLIC COMPANY LIMITED 4.6% 4 UOB KAY HIAN PRIVATE LIMITED 1.4% 5 HSBC (SINGAPORE) NOMINEES PTE LTD 1.2% 6 STATE STREET BANK EUROPE LIMITED 1.0% 7 K EQUITY 70:30 LTF 0.8% 8 CHASE NOMINEES LIMITED 0.8% 9 K EQUITY DIVIDEND LTF 0.7% BUALUANG LONG TERM EQUITY FUND (B-LTF) 0.7% TOTAL TOP 10 SHAREHOLDERS 61.3% Section 1: BTS Group in Brief 10

11 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 BTS Group in Brief Business Segment Profiles Mass Transit Business Media Business Property Business Services Business 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 11

12 BTS Group Vision 2021 THAILAND S LEADING MASS TRANSIT DEVELOPER AND OPERATOR 11.8X BKK RAIL MASS TRANSIT LENGTH TARGET 12.8km FY 15/ x 8.9X MASS TRANSIT REVENUE* TARGET 150.5km 2021 Target MASS TRANSIT RAIL LENGTH TARGETS (KM) Target Network Length BTS Target Distance THB 1.6bn 8.9x > THB 14bn FY 15/ Target *Revenue includes (i) O&M revenue from green south & north extensions, LRT, grey phase I and light green, a total of 72.8km and (ii) farebox revenue from pink and yellow line Section 2.1: Mass Transit Business T 2020T 2029T Source: Office of Transport and Traffic Policy and Planning 12

13 Role of BTS Group in Mass Transit Investor, Operator, Developer, Concessionaire I 33.3% INVESTMENT IN BTSGIF OPERATOR OF BTS SKYTRAIN CORE NETWORK O Underlying assets have 15-year track record Growth & resilience characteristics Stable and growing dividend yield Full beneficiary of Ridership growth Fare increases Operating leverage until Dec 2029 BTS GROUP Exclusive operator of BTS SkyTrain Core Network (23.5km) 15 year track record Operate at cost, but potential benefit from incentive fee Limited CAPEX, large CAPACITY Remain legal concessionaire O OPERATOR OF CORE NETWORK EXTENSIONS ROLE IN MASS TRANSIT DEVELOPER OF RAIL MASS TRANSIT D Appointed to operate & maintain Green line by the Bangkok Metropolitan Administration (BMA) Track record since year contract covering Green line extensions (12.8km) from Also covers Core Network (23.5km) from 2029 to May 2042 No ridership risk Original developer of BTS Core SkyTrain Network Expertise as well as financial capability to invest in future mass transit lines Section 2.1: Mass Transit Business 13

14 Bangkok Rail Mass Transit Master Plan km* by 2029, 23.8% share of Mass Transit commute by 2037 *Includes MRTA and BMA projects Sources: Office of Transport and Traffic Policy and Planning, Bangkok Metropolitan Administration RAIL MASS TRANSIT MARKET SHARE* Seoul Hong Kong Singapore Tokyo Guangzhou Bangkok 51% 46% 40% 36% 17% 6% Source: OTP, Singapore s Land Transport Authority, Hong Kong s Transport Department, MTR Corporation Limited, SMRT Corporation Limited, Japan Statistic Bureau PERVASION (per million population) (rail track length per mn population) Hong Kong Singapore Tokyo Bangkok * Percentage of people using rail mass transit over other forms of mass transit Source: United Nations Statistics Division, BTSC, BMCL, MTR Corporation Limited, SMRT Corporation Limited, official websites of rail mass transit system in major cities Section 2.1: Mass Transit Business 14

15 Existing Bangkok Mass Transit Network Immature network, 107.8km as of 2016 EXISTING LINES 107.8KM; 76 STATIONS MARKET SHARE OF RIDERSHIP (as of August 2016) (1) BTS: 36.3km (SkyTrain) BEM: 43.0km SRT: 28.5km (Airport Rail Link) 7% 27% 61, ,000 (2) PURPLE BANG YAI BANG SUE 23.0km LIGHT GREEN NATIONAL STADIUM BANG WA 14.0km (1) Based on companies disclosed information (2) Airport Rail Link ridership per day disclosed as of October 2016 Section 2.1: Mass Transit Business BLUE BANG SUE HUA LAMPHONG 20.0km ARL PHAYATHAI SUVARNABHUMI 28.5km DARK GREEN MO CHIT BEARING 22.3km 66% LINE DARK GREEN (CORE) LIGHT GREEN (CORE) 66% Average daily ridership ROUTE 685,176 1,032,676 in total DISTANCE (KM) OPERATING SINCE MO CHIT ON NUT 17.0 DEC 99 NATIONAL STADIUM SAPHAN TAKSIN 6.5 DEC 99 BLUE BANG SUE HUA LAMPHONG 20.0 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 CORE NETWORK PURPLE BANG YAI BANG SUE 23.0 AUG 16 EXTENSIONS TO OUR CURRENT CORE NETWORK 15

16 BTS Group: INVESTOR in BTSGIF (Core Network) Prime position to capture growth from Network Expansion 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 LIGHT GREEN NATIONAL STADIUM - SAPHAN TAKSIN 6.5km DARK GREEN MO CHIT ON NUT 17.0km WHAT IS BTSGIF? 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 *See Appendix 1 for details of Concession Agreement Section 2.1: Mass Transit Business 16

17 BTS Group: INVESTOR in BTSGIF (Core Network) Uninterrupted revenue growth and resilient under pressure GROWTH (15 YRS) Farebox revenue (THB mn) Ridership (mn) Farebox revenue CAGR: 10.6% Ridership CAGR: 9.6% 59 1, , , , , , ,292 3,224 3, ,545 3, , , ,677 5, , / / / / / / / / / / / / / / / /16 Dec 99: BTS SkyTrain service opening May 09: Opening of Silom Line extension Jul 04: Opening of Bangkok MRT System (Blue line) May 10: Opening of Bangkok BRT; Thai political protests Mar 07: First fare rate increase Aug 10: Opening of Airport Rail Link Aug 11: On Nut Bearing extension opening Oct Nov 11: Floods Apr 13: Sale of net farebox revenue to BTSGIF Jun 13: Fare increase Nov 13: Thai political protests Dec 13: Wongwian Yai Bang Wa extension opening INITIAL GROWTH RIDERSHIP CAGR (3 YRS): 21% STABLE GROWTH RIDERSHIP CAGR (5 YRS): 5% FASTER GROWTH RIDERSHIP CAGR (6 YRS) 8% Section 2.1: Mass Transit Business 17

18 BTS Group: INVESTOR in BTSGIF (Core Network) Flexibility to increase fares FARE ADJUSTMENT MECHANISM DISTANCE-BASED FARE (BY NO. OF STATIONS) EFFECTIVE FARE 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 AUTHORISED 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) HISTORICAL AVERAGE FARE RIDERSHIP BY TICKET TYPES (FY 15/16) THB AUTHORISED FARE EFFECTIVE FARE POTENTIAL FARE UPSIDE NO. OF STATIONS THB / Trip 30-DAY PASS (STUDENT)* 7% AVG FARE THB 20.8 ONE-DAY PASS 1% AVG FARE THB DAY PASS (ADULT)* 29% AVG FARE THB 25.8 SJT 36% AVG FARE THB / / / / / / / / / /16 Section 2.1: Mass Transit Business * Counted as Rabbit PURSE (STV)* 27% AVG FARE THB

19 72.0% 70.0% 68.0% 66.0% 64.0% 62.0% 60.0% Core Network Performance Efficient operation; further scope for cost efficiency STRONG RIDERSHIP GROWTH ALONG WITH SUSTAINED MARGIN EXPANSION 67.5% 67.8% % 69.9% % 233 EBITDA MARGIN COMPARISON (CORE ONLY) FY 14/15 FY 15/ % 72.5% 43.1% 17.4% 16.6% 42.6% 2011/ / / / /16 Core BTS SkyTrain Ridership (mn) Operating EBITDA Margin (%) CORE COSTS AND SG&A BREAKDOWN FY 15/16 OTHERS, 6% MAINTENANCE, 13% ADMIN, 4% BTS SkyTrain* Singapore MRT* Hong Kong MTR** * FY ending 31 Mar 2014, 2015 ** FY ending 31 Dec 2013, 2014 MAINTENANCE EXPENSES BREAKDOWN (THB mn) DEPRECIATION, 51% STAFF COST, 19% UTILITIES, 7% / / / / / / / /16 Major overhaul expenses General maintenance expense Section 2.1: Mass Transit Business 19

20 Rolling Stock Enlarging our fleet for future growth CURRENT FLEET NO. OF TRAINS TOTAL CARRIAGES CAPACITY INCREASE (CUMULATIVE) INDICATIVE CAPEX (THB mn) Already full operated in Oct 2011 Already operated in May 2013 Already fully operated in Feb 2014 X FULLY PAID X TOTAL CURRENT FLEET X FULLY PAID FULLY PAID X5 20 FULLY PAID FLEET EXPANSION To be delivered in FY 18/19 To be delivered in FY 19/20 TOTAL FUTURE FLEET X * Based on THB/EUR average bank selling rate on 23 May 2016 X % ~THB 10.9bn* X % SYSTEM DESIGN CAPACITY OF 50,000 PPHPD* CURRENT CAPACITY OF 24,000** PPHPD Section 2.1: Mass Transit Business 20

21 BTSC is the OPERATOR of the Core Network Thailand s most experienced operator OPERATED & MAINTAINED THE CORE NETWORK SINCE 5 DEC 1999 Reliable Operations Team with 16-year track record Impeccable safety record Strong management expertise REMAINS THE CORE NETWORK OPERATOR FOLLOWING ESTABLISHMENT OF BTSGIF BTSC operates the Core Network on behalf of BTSGIF It deducts OPEX and CAPEX at cost (no margin) BTSC receives an incentive fee from BTSGIF Net Farebox Revenue (transferred to BTSGIF daily) Incentive Fee FAREBOX REVENUE net of OPERATING EXPENSES CAPITAL EXPENDITURE PAYABLE BY BTSGIF TO BTSC ONLY WHEN NET FAREBOX REVENUE EXCEEDS BUDGET 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 1. NO INCENTIVE FEE If actual Net Farebox Revenue 100% of Budget 2. 10% INCENTIVE FEE On 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 Section 2.1: Mass Transit Business 21

22 THB 1.5bn 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 BTSC: OPERATOR of Green Line Extensions 12.8km of extensions already under our contract EXTENSION Saphan Taksin Bang Wa CORE NETWORK EXTENSION On Nut - Bearing 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&M PRE-AGREED REVENUE (Excl. VAT) O&M COSTS AND SG&A BREAKDOWN - FY15/16 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% THB 3.7bn THB 4.6bn OTHERS, 10% CLEANING & SECURITY GUARD, 9% DEPRECIATION, 3% UTILITIES, 13% MAINTENANCE, 23% STAFF COST, 41% Interest income O&M - Core Network O&M - Extension Section 2.1: Mass Transit Business 22

23 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 Yellow LRT Light Green (Bang Wa Boromma ratchachon nani) Grey The only operator who can provide seamless services Lower project CAPEX Lower O&M OPEX Proven track record 16 years experience in running BTS core lines Completed BTS core line construction in 35 mths Financial strength with THB 16bn excess liquidity Financial flexibility from the BTS-W3 warrants Section 2.1: Mass Transit Business 23

24 BTS Group: A Key Participant in Mass Transit Development Focused on 7 lines; total length of 137.7km 259.7KM ONGOING PROJECTS PRIORITISED BY THE GOVERNMENT IN 5 YRS, 84.5KM UNDER CONSTRUCTION LINE ROUTE AUTHORISING BODY TARGETED OPERATE YEAR CONSTRUCTION PROGRESS No. of station BLUE HUA LAMPHONG - BANG KHAE MRTA 2019 UNDER CONSTRUCTION BLUE BANG SUE - THA PRA MRTA 2019 UNDER CONSTRUCTION BLUE BANG KHAE - BHUDHAMONTHON 4 MRTA DARK RED BANG SUE - RANGSIT SRT 2021 UNDER CONSTRUCTION DARK RED BANG SUE HUA LUM PHONG SRT LIGHT RED BANG SUE PHAYATHAI MAKKASAN HUAMAK SRT DISTANCE (KM) DARK GREEN SOUTH DARK GREEN NORTH BEARING - SAMUT PRAKARN BMA 2018 UNDER CONSTRUCTION MO CHIT SAPHAN MAI KHU KHOT BMA 2020 UNDER CONSTRUCTION LIGHT GREEN BANG WA - BOROMMARATCHACHONNANI BMA LRT BANG NA - SUVARNABHUMI BMA km GREY (PHASE I) WATCHARAPHON THONG LO BMA PINK KHAE RAI PAK GRED MIN BURI MRTA YELLOW LAD PRAO SAM RONG MRTA DARK GREEN SAMUT PRAKARN - BANGPU MRTA DARK GREEN KHU KHOT - LUMLUKKA MRTA ORANGE EAST THAILAND CULTURAL CENTER - MIN BURI MRTA TOTAL (KM) CORE AND EXTENSIONS TO OUR CURRENT LINES LINES CONNECTING TO OUR LINES Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, State Railway of Thailand, Ministry of Transport, Bangkok Expressway and Metro Public Company Limited (BEM), BTS Group Holdings Public Company Limited (BTS) Section 2.1: Mass Transit Business 24

25 BTS Group: A Key Participant in Mass Transit Development BTSG well-positioned for new contracts PINK LINE Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, Ministry of Transport, the Company DARK GREEN NORTH LINE Khae Rai Min Buri (34.5km) Bidding submission: Nov 2016 Target operation: 2020 Mo Chit Saphan Mai Khu Khot (18.4km) Status: under construction Expected O&M award: 2016 Target operation: 2020 GREY LINE Watcharaphol Rama 9 Bridge (26.0km) Awaiting EIA approval Expected bidding (Phase I): 2017 Target operation (Phase I): 2021 Phase I: Watcharaphol Thong Lo (16.3km) YELLOW LINE Lad Prao Sam Rong (30.4km) Bidding Submission: Nov 2016 Target operation: 2020 LIGHT GREEN LINE Bang Wa Borommaratchachonnani (7.0km) Expected O&M award: 2017 Target operation: 2019 LIGHT RAIL TRANSIT (LRT) Bang Na Suvarnabhumi (18.3km) Expected bidding: 2017 Target operation: 2021 DARK GREEN SOUTH LINE Section 2.1: Mass Transit Business Bearing Samut Prakarn (12.8km) Status: under construction Expected O&M award: 2016 Target operation: Late 2018 *See Appendix 2 for details of CAPEX requirements 25

26 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 BTS Group in Brief Business Segment Profiles Mass Transit Business Media Business Property Business Services Business 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 26

27 Thai Media Market Overview Note: VGI discontinued operations in Modern Trade Media effective 1Q 15/16 OVERALL THAI MEDIA MARKET SHARE TOTAL ADSPEND AND THAI MEDIA MARKET SHARE (FY 09/10 FY 15/16) 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. 93 5% 7% 28% 59% FY 09/ % 7% 7% 8% 26% 25% 60% 59% FY 10/ FY 11/ % 6% 1% 5% 9% 9% 24% 24% 60% 61% FY 12/13 Section 2.2: Media Business FY 13/ % 4% 10% 23% 62% FY 14/15 1% 6% 10% 23% 60% FY 15/16 Note: Out-of-Home Media = Outdoor, Transit and In-Store Traditional Media = Radio, Newspapers and Magazines Data excludes classified ads, house ads, digital TV, cable TV and satellite TV Source: The Nielsen Company (Thailand) Limited 93 AdSpend (THB bn) (+0.1% Industry CAGR) Internet (+27.6% CAGR) Cinema (0.9%% CAGR) OOH Media (+6.5% CAGR) Traditional Media (-3.2% CAGR) TV (+0.3% CAGR) OOH MEDIA MARKET OVERVIEW OOH MEDIA SECTOR PRIMARILY DRIVEN BY TRANSIT MEDIA Transit Media continued to dominate the OOH Media market and is expected to further increase with the rail mass transit network expansion. Transit Outdoor In-Store 13% 16% 20% 27% 24% 19% 59% 53% 49% 43% 41% 28% 30% 30% 30% 35% 40% TOP 10 ADSPEND FOR OOH MEDIA BY BUSINESS SEGMENTS OOH MEDIA FY 15/16 1 FMCG 39.5% 2 COMMUNICATIONS 7.9% 3 REAL ESTATE 6.3% 4 RETAL SHOPS/STORES 6.2% 5 MEDIA & MARKETING 4.8% 6 TRAVEL & TOURS 3.8% 7 LEISURE 3.1% 8 FOOD OUTLETS & RESTAURANTS 2.7% 9 INSURANCE 2.6% 10 CREDIT/DEBIT CARDS 2.3% TOTAL 79.2% 40% 4% 47% 49% FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 27

28 Thai Media Market Overview Media Landscape in Thailand THE TRANSITION FROM TRADITIONAL MEDIA TO OOH MEDIA Rising in infrastructure, urbanisation and increasing number of people who spend time outdoor were driven the growth of Thailand OOH Media. 90bn 90bn 5% 7% 5% 7% 31% 28% 57% 59% 60% 101bn 105bn 6% 7% 7% 8% 27% 25% 59% 114bn 113bn 7% 5% 9% 9% 24% 24% 60% 61% 103bn 4% 10% 23% 62% 95bn 5% 10% 23% 60% ADVERTISING EXPENDITURES BY SECTOR (rebased) OOH Media proved to be the fastest growing media sector % CAGR +2.6% CAGR +1.5% CAGR +0.7% CAGR TV Traditional media OOH Media Cinema Internet TRANSIT MEDIA INCREASED ITS MARKET SHARE CONTINUOUSLY Transit is continue to dominate the OOH Media market share and expected to increase on account of improving rail mass transit infrastructure. 13% 13% 16% 19% 66% 21% 61% 54% 50% 27% 31% 31% 29% 34% 39% Section 2.2: Media Business 27% 26% 20% 44% 40% 41% 7% 45% 48% Transit Outdoor In-Store % CAGR Total Industry TV* Traditional media OOH Media Cinema * Traditional Media includes Magazines, Radio and Newspapers TOP 10 ADSPEND BY BUSINESS SEGMENT FMCG 40.7% 40.1% MOTOR VEHICLES 7.7% 7.6% COMMUNICATIONS 6.8% 6.1% GOVERNMENT & COMMUNITY ANNOUNCEMENT 5.7% 6.2% LEISURE 4.4% 4.8% MEDIA & MARKETING 3.3% 3.7% RETAIL SHOPS/STORES 3.0% 3.2% INSURANCE 2.7% 2.7% BANKS 2.4% 2.2% TRAVEL & TOURS 2.3% 2.6% TOTAL 79.0% 79.1% 28

29 Media Business: Financial Performance High margin business and low leverage HISTORICAL OPERATING PERFORMANCE OPERATING REVENUE AND OPERATING EBITDA Operating Revenue Operating EBITDA (THB mn) 3,121 2,795 Revenue CAGR: 9% EBITDA CAGR: 12% 2,926 KEY FINANCIAL RATIOS FY 14/15 FY 15/16 Net profit margin (%) 28.3% 44.7% 1, ,959 1,012 1,386 1,580 1,530 2,069 1,325 ROA (%) 27.8% 39.5% ROE (%) 44.3% 46.2% Net debt to equity (times) 0.3x 0.1x FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Note: Ratios calculated from VGI s consolidated financial statements FINANCIAL INFORMATION BY BUSINESS SEGMENTS REVENUE CONTRIBUTION GROSS PROFIT CONTRIBUTION GROSS PROFIT MARGINS 39% 61% 14% 86% Non-BTS Media 15% BTS-related Media 85% 5% 95% Non-BTS Media BTS-related Media FY 14/15 FY 15/16 Overall 59% 71% BTS-related Media 83% 79% FY 14/15 FY 15/16 FY 14/15 FY 15/16 Non-BTS Media 23% 26% Section 2.2: Media Business 29

30 BTS-related Media Overview KEY CONTRACT TERMS RIGHTS Exclusive rights for 23 stations on core network, 7 stations on BTS extension lines and all BTS trains, in-trains & On-Stations and Merchandising Area 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: 18 May December Extensions: 6 May December 2029 CONCESSION FEE (PAYABLE TO BTSC & BMA) 5% - 20% of BTS revenues/year (an increase of 5% every 5 yrs) Fixed rate for 7 extension stations OUR PRODUCTS (% OUT OF 2015/16 BTS-RELATED MEDIA REVENUE) I. TRAIN (42%) II. STATION (33%) MARKET SHARE IN TRANSIT Other, 45% FY 15/16 Transit Media AdSpend THB 4.6bn VGI, 55% Note: based on a market discount rate of 30% No. of location: 30 stations/52 trains Static Media: Digital Media: Viewer reach: > 4,000 displays 2,029 screens 720,155 people/day Merchandising > 10,000 sqm. space: Target viewer: Working people & younger generation Age Middle Income III. MERCHANDISING & OTHER (25%) Section 2.2: Media Business 30

31 BTS-related Media Growth drivers UPSIDE FROM MASS TRANSIT NETWORK EXPANSION BANGKOK RAIL MASS TRANSIT MASTER PLAN E Total rail length (km) No. of stations 60 >320 Market share of rail mass transit commuters Section 2.2: Media Business 6.4% 42.4% (by 2032E) 4X EXPECTED INCREASE IN BTS TRAIN CAPACITY IN 5 YEARS (108.8KM) FY 15/16 FY 19/20E Green Lines (no. of carriages)* 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 15/16 FY 19/20E Green Lines (no. of stations)* Other Lines (no. of stations)** None 57 Total (no. of stations) 34 4X 123 * BTS s existing network, Dark Green South and North extensions and Light Green Line extension ** LRT, Grey Line and Pink Line INCREASED DIGITALISATION DIGITAL MEDIA PENETRATION STILL RELATIVELY LOW IN THAILAND Digital 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. 2.3% 3.6% 6.0% 7.0% 97.7% 96.4% 94.0% 93.0% *** Including Display, Search, social Media, Creative, Mobile, Facebook Ad and Video Source: 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. (THB mn) 1, % 1, % 1,405 1, % % 49% 54% 2012/ / / /16 45% 55% Digital (online)*** Offline Static Digital 31

32 Office Building Media Overview KEY CONTRACT TERMS Rights OUR PRODUCTS Media inside elevators and office building areas Exclusive rights to manage 135 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 OFFICE MARKET SHARE OFFICE MEDIA PROFILE Others 37% Grade A and B Building in Bangkok 215 Buildings VGI 63% No. of Media Locations: Multimedia: 135 grade A buildings in Bangkok 1,091 screens Viewer Reach: >700,000 people/day Average time spent in an elevator: 14 mins/day Section 2.2: Media Business 32

33 Office Building Media Growth drivers from existing office asset base and new office supply OFFICE BUILDING NETWORK EXPANSION VS REVENUE* CONTINUOUS REVENUE GROWTH FROM NETWORK EXPANSION Office Building Media is set to recover post economic slump and the addition of new office buildings will drive growth in this segment. NEW OFFICE SUPPLY IN BANGKOK 318,000 SQ.M. OF NEW OFFICE SUPPLY EXPECTED IN THE NEXT 3 YEARS Office Building Media Revenue (THB mn) No. of building Revenue CAGR (6 yrs): 48% FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/ CBD ('000 sq.m.) Non CBD ('000 sq.m.) * At VGI level 191 VGI S EXISTING OFFICE BUILDING NETWORK IN BANGKOK (BY DISTRICT) VGI s office building network Bangkok CBD F 2017F 2018F Section 2.2: Media Business Source: CB Richard Ellis (Thailand) Co., Ltd. 33

34 Other Media Overview KEY INVESTMENT AND CONTRACT DETAILS Investments OUTDOOR MEDIA (Billboards, Street Furniture & Transit Media) 37.42% 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 Section 2.2: Media Business OUR PRODUCTS I. Investments in MACO, AERO MEDIA & MIDAS II. Contracts and Exclusive Selling Agent 34

35 Now presently a Nationwide Integrated Media Platform In process In process TRANSIT OFFICE OUTDOOR AVIATION RABBIT ACTIVATION 61% market share 66% market share (Grade A&B bldg.) 37.42% in MACO 30% in Aero Media ONLINE & OFFLINE TARGETED >720,000 viewers reached daily >700,000 viewers reached daily 178 mega billboards >115MN viewers reached annually 5MN card holders >360 exclusive stores Bangkok 30 BTS station 52 BTS skytrains 160 office buildings 219 residential buildings Nationwide >1,200 MACO billboards >850 Multi Sign billboards Media in 13 airports LONG TERM contracts end 2029 & X expected capacity 70% GP margin 142 office buildings 219 condominiums 70% GP margin 389 networking billboards 654 street furniture 56% GP margin 342 LCD screens 7,000 trolleys 57 jet bridges 90 offline merchants >30MN potential e-wallet members 33MN online impressions 275 brand clients 77 provinces nationwide Section 2.2: Media Business PROVEN WINNER GROWTH SPRINGBOARD GROWTH PROSPECTS 35

36 Evolving into Data Centric Media Hypermarket ROI ACTIVATION TRANSIT OFFICE OUTDOOR AVIATION ONLINE MEDIA INVENTORY & AUDIENCE REACH PROGRAMMATIC HYBRID CAMPAIGN TARGETED MEDIA INNOVATIVE MEDIA DATA ANALYTICS DATA WAREHOUSE Travel data Financial data Location data PAYMENT SERVICE ONLINE Spending data Demographic Data Section 2.2: Media Business 36

37 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 BTS Group in Brief Business Segment Profiles Mass Transit Business Media Business Property Business Services Business 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 37

38 Thai Condo Market Overview Buyers Willing to Pay Premium Prices for Proximity to BTS BANGKOK CONDO LAUNCHES Units 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Total 47,339 63% Total 51,150 61% Total 50,105 56% Take-up Rate Total 66% 34,666 64% 61% Q 2Q 3Q 4Q Average Take-up Rate (RHS) Source: Colliers International (Thailand) CONDO LAUNCH PRICES (THB/SQ.M) Units ,000 25,000 20,000 15,000 10,000 5, % 13% Below THB 50,000 / sq.m Source: Colliers International (Thailand) 49% 45% THB 50, ,000 / sq.m Section 2.3: Property Business 22% 29% THB 100, ,000 / sq.m 2% 12% THB over 200,000 sq.m 62% 60% 58% 56% 54% 52% 50% LAUNCH PRICES AND TAKE-UP RATES BY DISTANCE TO BTS THB/sq.m 0-200m (CAGR +24.0%) 250, , , ,000 50, m (CAGR +13.4%) 501-1,000m (CAGR +22.6%) 76% Over 1,000m (CAGR +9.8%) 58% 64% 63% 70% 65% 63% 52% 47% 70% 60% 46% 48% 48% 78% 51% Source: Colliers International Thailand BUYING SENTIMENT AND AVERAGE HOUSEHOLD SIZE Index Average Household Size Bangkok & Vicinities (RHS) New Residence Buyer's Confidence Index Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Source: REIC, University of the Thai Chamber of Commerce 2.09 Persons

39 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 May-16 Thai Hospitality Industry Overview Positive Outlook INTERNATIONAL TOURIST ARRIVALS Mn of Visitors FUTURE BANGKOK HOTEL SUPPLY BY SEGMENTS Total Tourist Arrivals to Thailand China Malaysia Russia Others Source: Department of Tourism, Ministry of Sports and Tourism Keys 50,000 40,000 30,000 20,000 10,000 - Source: CBRE 29,235 31,806 35,028 38,139 40,355 Market Share 44,872 47,015 48,255 48% 41, Economy Mid-Range First-Class Luxury Mid-Range Market Share (RHS) Section 2.3: Property Business 46% 44% 42% 40% BANGKOK HOTEL PERFORMANCE METRICS THB/Night 3,500 3,000 2,500 2,000 1,500 1, Source: CBRE 53.2% 63.5% 70.6% 74.4% 61.9% 2,975 2,993 3,019 3,231 3,152 3,287 1,907 2,134 2,404 2,475 1,961 1, ADR RevPAR Occupancy Rate THAI BAHT PERFORMANCE TO MAJOR CURRENCIES Source: Bloomberg THBUSD THBEUR THBCNY (RHS) Occupancy 75.3% 80% 70% 60% 50% 40% 30% 20% 10% 0%

40 Property Portfolio and Business Strategy Substantial Development Potential of Assets for Long-Term Value PROPERTY BOOK VALUE BREAKDOWN PROPERTY DEVELOPMENT APPROACH ALONG MASS TRANSIT Bayswater JV THB 4.0bn U City THB 7.3bn 38% 21% 2% TOTAL BOOK VALUE THB 19.3BN 18% Residential THB 0.3bn Commercial THB 3.5bn Residential Property: Establish 50:50 joint venture companies with Sansiri. Target to launch THB 100bn in project value of residential projects along mass transit routes over 5 years with expected NPAT margin 12% and equity IRR 17% as of 30 Sep % Land Bank THB 3.6bn Commercial Property: Divested 3 assets to U CITY for total consideration of JVs: paid-up capital and shareholder loans U City: net equity value ATTRACTIVE LAND BANK IN BANGKOK & VICINITIES Owners Total Area (Rai) Total Area (sq.m) 3% BTS-Sansiri JV THB 0.6bn THB 9.4bn in exchange for a 35.64% stake. U City aims to develop or acquire a portfolio of recurring income-generating assets A HISTORY OF UNLOCKING SOLID GAINS ON OUR ASSETS (THB mn) Book Value Price Sold 1.9x BTS Group Plc , x 14,221 Bayswater JV ,987.2 U City Plc ,056.0 Total 1, ,644, x 1.7x 1.9x 1,550 1,792 1,411 1,261 1, ,469 4,603 7,681 Excludes upcountry, non-bkk & Vicinities land bank. Data as of 30 Sep Q 12/13: Kamala Beach Resort 3Q 12/13: Land at Nana 3Q 14/15: Land at Mochit to SIRI JV 1Q 15/16: BTSA & KKP to U City Total Section 2.3: Property Business 40

41 Property Business Strategy - Bangkok Land: Over 1,500,000m² of Potential Near Mass Transit Lines Projects and Properties a. The Line Jatujak Mochit b. The Line Sukhumvit 71 c. The Line Ratchathewi d. The Line Asoke-Ratchada e. The Base Garden Rama 9 f. The Grand g. The Royal Place II h. TST Tower Office Building i. U Sathorn Hotel j. Thana City Golf & Sports Club k. Park Ramindra Condo l. Eastin Grand Sathorn Hotel h a k Projects and Properties Residential Projects & Properties (a - g) Commercial Properties (h - j) U City Residential Projects (k) U City Commercial Properties (l) d e c Land Bank BTS Group Land Bank f g i b j Bayswater Land Bank l U City Land Bank New/Extension Lines Inner City Area Section 2.3: Property Business 41

42 Residential Property Projects under Development & Development Pipeline ACTIVE RESIDENTIAL PROJECTS UNDER SIRI JV * As of Oct 2016 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 THE LINE Jatujak Mochit May , k 100% 55% Oct 2017 Dec % THE LINE Sukhumvit 71 Aug , k; fully furnished 100% 99% Oct 2016 Jan % THE LINE Ratchathewi Oct , k 100% 22% May 2018 Sep % THE LINE Asoke-Ratchada Jun , k; fully furnished 100% 0% Apr 2019 Sep % THE BASE Garden Rama 9 Sep , k 80% 4% May 2019 Sep % Total/Weighted Average 15,853 2, k 97% 26% TOTAL PRESALES BACKLOG (THB mn) 2016 RESIDENTIAL PROPERTY LAUNCH PLAN Launch 6 Projects with total project value of THB 25bn 1,055 5,702 5,795 1,800 14,352 FY 16/17E FY 17/18E FY 18/19E FY 19/20E BTS-SIRI JV Presales Equity method needs to be applied to joint venture transactions Backlog Calculated based on BTS Group s fiscal year Section 2.3: Property Business Projects Launched so far this year: 42

43 Commercial Property A Diversified Portfolio of Recurring Income Generating Assets COMMERCIAL PROPERTY REVENUE BREAKDOWN Others 23% U-Hotels 38% FY 15/16 Commercial Property Revenue: THB 594mn Launch at least 2 projects, including mixed-use THB 10bn Phayathai project. Phayathai mixed-use building will include a hotel, service apartments, office and retail space with GFA of 120,000 sqm with a skybridge connection to Phayathai BTS interchange station with Airport Link Eastin Grand Sathorn* 6% 2016 COMMERCIAL PROPERTY LAUNCH PLAN Thana City Golf 33% *Sold to U City on 20 April 2015 HOTEL PORTFOLIO Hotel Name Number of keys Ownership 1. U Sathorn Bangkok % 2. U Chiang Mai % 3. U Inchantree Kanchanaburi % 4. Eastin Grand Sathorn %* 5. Avani Khon Kaen %* 6. Anantara Chiang Mai 84 36%* HOTEL PERFORMANCE * BTS Group s stake in U City Blended Averages FY 2014 FY 2015 Occupancy Rate 72.1% 80.1% ADR (THB) 2,871 2,910 RevPAR (THB) 2,070 2,331 Gross Margin (%) 51.5% 53.7% Section 2.3: Property Business 43

44 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 BTS Group in Brief Business Segment Profiles Mass Transit Business Media Business Property Business Services Business 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 44

45 Services Business Current Rabbit: Offline Platform and mostly Focused in Bangkok BANGKOK SMARTCARD SYSTEM (BSS) RABBIT 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. Use on BTS SkyTrain & BRT Use in retail stores 6.3mn Rabbit cards in circulation (as of Sep 2016) KEY MILESTONES FOR THE PAST 4 YEARS 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 1 st Smart Rabbit Card in Mar 2013 AEON RABBIT CARD: launch in Feb 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 LARGE PARTNERS NETWORK BUILT 90 brand partners >3,000 Card readers Section 2.4: Services Business 45

46 Our Future through Rabbit We aim to become the leader of online & offline payment systems in Thailand > mn brand partners >3,000 card readers 2.0mn 33mn Powered by RABBIT FINANCE EC Digital website Content MICRO FINANCE & FINANCIAL COMPARISON BROKER ONLINE CONTENT & DIGITAL MEDIA PLATFORM Section 2.4: Services Business >15 million Rabbit Card holders card holders >6 million Rabbit Line Pay accounts active card holders >20,000 Acceptance points >4 million Line users Transactions/day >500 million Settlement value/day active line pay users Shops 1.5mn >200 THB mn Gross written insurance premium/month >4 THB bn Outstanding Balance on ATS Loan Lifestyle Publisher Digital Marketing >30 million monthly visits Biggest online marketer Digital media trading desk with more than 1 bn impression RABBIT REWARD ONLINE PAYMENT TARGET IN 2020 BIG DATA CUSTOMER COMMON TICKETING & OFFLINE PAYMENT RABBIT INTERNET RABBIT PAY RABBIT CARD EXISTING 46

47 Overview of Services Business CHEFMAN RESTAURANTS Premium Chinese restaurant chain managed by Man Kitchen As of 31 Mar 2016, 9 existing branches: 3 dine-in branches, 1 take-away branch, 4 Chairman by Chef Man (Hong Kong Café concept), 1 private dining concept under M Krub restaurant and 1 Man Kitchen buffet Eastin Grand Sathorn Branch Thana City Branch ABSOLUTE HOTEL SERVICES (AHS) 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 Royal Place 2 Branch Express Branch at Royal Place 2 Number of hotels Number of rooms >9,200 10,500 Under AHS contracts 2015/ /17E Section 2.4: Services Business 47

48 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 BTS Group in Brief Business Segment Profiles Mass Transit Business Media Business Property Business Services Business 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 48

49 BTS Group Financial Performance FY 15/16 REVENUE & EBITDA CONTRIBUTION BY BU EBITDA Contribution Revenue Contribution REVENUE COMPARISON BY BUSINESS UNIT (THB mn) 2,274 2, % 12% 15% 44% 2,926 2,069 34% 54% 40% FY 14/15 FY 15/16 1, (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 Services Property Media Mass Transit 7,102 6,148 Mass Transit Media Property Services Total CONSOLIDATED P&L (THB MN) FY 15/16 FY 14/15 FY 13/14 FY 12/13 Operating revenues 6,148 7,102 8,532 10,375 Operating expenses 2,625 3,163 4,147 5,317 Non-recurring items 2, , EBITDA 6,268 4,937 10,334 6,186 Operating EBITDA (1) 2,560 2,836 3,100 5,081 Net income (2) 4,141 2,944 12,598 1,719 DEBT INFORMATION (THB MN) 31 MAR MAR MAR MAR 13 Interest bearing debt 9,283 4,556 6,655 11,961 Net debt 6,918 (5,556) (2,013) 8,447 KEY FINANCIAL RATIOS FY 15/16 FY 14/15 FY 13/14 FY 12/13 Profitability ratios (%) Gross operating profit margin 57.3% 55.5% 51.4% 48.8% SG&A to operating sales ratio 22.9% 22.0% 19.5% 16.6% Accounting EBITDA margin 59.6% 52.0% 73.% 53.3% Operating EBITDA margin (1) 41.6% 39.9% 36.3% 49.0% Recurring net profit margin (%) 33.7% 34.7% 25.4% 9.7% Liquidity ratio Current ratio (times) 0.83x 3.96x 4.36x 5.79x Leverage (Times) Total liability to total asset 0.28x 0.22x 0.22x 0.25x Total liability to total equity 039x 0.28x 0.29x 0.33x Interest bearing debt to equity 0.20x 0.09x 0.11x 0.24x Net debt to equity 0.15x (0.11)x (0.03)x 0.17x Net debt to operating EBITDA 2.70x (1.96)x (0.65)x 1.66x Interest coverage (3) 8.84x 7.03x 4.94x 4.07x Per share ratios Book value per share (THB) Dividend yield (4) % 7.37% 4.71% Section 3: Financial Summary 49

50 Balance Sheet ASSET BREAKDOWN (THB MN) 66,811 65,169 10,285 26,002 39% 16% Cash 31 Mar 15: THB 10.18bn 31 Mar 16: THB 2.36bn Current Investments 31 Mar 15: THB 4.77bn 31 Mar 16: THB 3.27bn LIABILITIES AND EQUITY BREAKDOWN (THB MN) 66,811 65,169 6,560 10% 12,455 8,238 12% 5,796 19% 9% Gross Debt 31 Mar 15: THB 4.56bn 31 Mar 16: THB 9.28bn Net Debt 31 Mar 15: THB (5.56)bn 31 Mar 16: THB 6.92bn 54,883 84% 40,808 61% 31-Mar Mar-16 Total current assets Total non-current assets SHAREHOLDERS EQUITY Long-Term Investments 31 Mar 15: THB 7.99bn 31 Mar 16: THB 9.56bn Restricted Deposits 31 Mar 15: THB 1.15bn 31 Mar 16: THB 1.24bn DILUTION IMPACT 52,012 78% 46, Mar Mar-16 Total current liabilities Total shareholders' equity 72% Total non-current liabilities ***** Issued Ordinary Shares 31 Mar 15: 11,919.3mn 31 Mar 16: 11,929.3mn Registered Capital (15,928.9mn THB 4.0) Issued and paid-up (11,929.3mn THB 4.0) THB mn 63,716 47,717 ESOP Type Outstanding warrants (mn) Exercise ratio (warrant : share) Exercise price (THB) Outstanding shares reserved for warrants (mn) % Dilution BTS-WA : 0.166* 4.220* % BTS-WB : % Others 1,618 Retained earnings (Deficits) (2,419) Total Shareholders Equity 46,916 BTS-WC : % BTS-W3 3, : , % Total 3, % as of 31 Mar 2016 * Adjusted under the conditions as stated in the terms and conditions of the warrants as of 31 Mar 2016 Section 3: Financial Summary 50

51 2016/17 BTS Group Targets and CAPEX/Financing BTS GROUP TARGETS MASS TRANSIT 5-6% Ridership Growth 1% Average Fare Increase 3-4% O&M Revenue Growth MEDIA* 30-40% Revenue Growth PROPERTY THB 620mn Commercial Property Revenue THB 60mn Residential Property Revenue THB (200)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 BTS GROUP REVISED CAPEX/ FINANCING (THB mn) FY 2016/17 TOTAL CAPEX/FINANCING OF THB 12.8BN** 6, ,850 3,300 E&M Rolling stocks Outdoor 5, ,200 3,700 Thana City Renovation Land acquisition & others Invest in BTS-SIRI JVs (gross) Mass Transit Media Property Services BTS Group *Consolidates MACO from Jun 2016 onwards **Excludes real estate development cost for Property business 2016/17 BTSGIF CAPEX (REVISED) is expected to be approx. THB 360mn (not included in BTS Group CAPEX) Section 3: Financial Summary 51

52 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 BTS Group in Brief Business Segment Profiles Mass Transit Business Media Business Property Business Services Business 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 52

53 Appendix 1: Core Network Concession Agreement Key terms and background 23 STATIONS, 23.5 KM IN CBD ALL INVESTMENTS MADE BY BTSC Connecting Bangkok s most important business and tourist destinations, serving as the backbone to all Bangkok s mass transit systems 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 AUTHORISATION EXCLUSIVE OPERATION RIGHT MINISTRY OF INTERIOR 30 YEARS CONCESSION 30 years of concession period ending 4 Dec 2029, approximately 17 years remaining BTSC CONCESSION AGREEMENT BMA 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 BTS SKYTRAIN MINISTRY OF SCOPE Procuring, 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 AUTHORISATION EXCLUSIVE OPERATION RIGHT INTERIOR 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. BTSC BTS SKYTRAIN CONCESSION AGREEMENT NET REVENUE TRANSFER AGREEMENT BMA BTSGIF Appendix 1: Core Network Concession Agreement 53

54 Appendix 2: Mass Transit Funding Requirements BTS Pipeline PROJECTED CAPEX/FINANCING BREAKDOWN OF EXPECTED FUTURE LINES (THB mn) KEY ASSUMPTIONS Total CAPEX/financing for expected lines = THB 144bn with D/E Ratio = 2.5 : 1 Total equity required by BTS Group = THB 41bn* 137.7km 143,799 10, km 30.4km 90, km 18.4km 46,862** 46,605** 16.3km 26,727 24, km 7.0km 12,170 15,700 4,940 42,489 3,572 20,135 22,354 8,598 10,760 8,616 2,096 11,750 Dark Green South Dark Green North Pink Yellow LRT Light Green Grey Total Rolling Stock E&M Civil work *If assume 50:50 JV, equity required by BTS Group for pink and yellow lines will be THB 28bn ** Excludes approximately THB 6bn in each line for land expropriation and other costs which are the costs invested by the government Source: Office of Transport and Traffic Policy and Planning (OTP), Mass Rapid Transit Authority of Thailand (MRTA), Bangkok Metropolitan Administration (BMA) and Company estimates Appendix 2: Mass Transit Future Funding Requirements 54

55 Appendix 2: Mass Transit Economic profile O&M Contract & PPP Net Cost ECONOMIC PROFILE (O&M CONTRACT) Rolling stocks Investment O&M revenue YEAR 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% *O&M revenue includes revenue from provision of operating services and interest income under concession agreement ECONOMIC PROFILE (PPP NET COST) YEAR Reimburse from gov't (civil) E&M Civil works Farebox revenue KEY ASSUMPTIONS 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) Appendix 2: Mass Transit Economic profile 55

56 Appendix 2: Funding Requirements (Mass Transit) Procurement of 184 carriages - Thailand s Largest Train Order 23 May 2016, BTSC signed the contract with Siemens Consortium ( Siemens ) and CRRC Changchun Railway Vehicles Co., Ltd. ( CRRC ) to procure additional trains. Total of EURO 270mn (before VAT) 46 additional 4-car trains, totaling of 184 carriages to serve the increased patronage in existing network, together with green line south and north extensions Rolling stocks From Delivery Schedule 22x4 trains 7x4 trains for existing network 15x4 trains for green line south extension 24x4 trains 21x4 trains for green line north extension 3x4 trains spare trains for extensions Siemens by 2018/19 CRRC by 2019/20 Appendix 2: Future Funding Requirements (Mass Transit) 56

57 Appendix 3: BTS-W3 Term Sheet WARRANTS TERMS AND CONDITIONS TICKER BTS-W3 TERMS 5 YEARS ISSUE DATE 1 NOV 2013 EXPIRY DATE 1 NOV 2018 EXERCISE PERIOD QUARTERLY STARTING FROM DEC 2016 TO SEP 2018 WITH THE LAST EXERCISE DATE ON 1 NOV 2018 (TOTAL 9 TIMES) WARRANT PRICE - ALLOCATION NO. OF WARRANTS EXERCISE RATIO EXERCISE PRICE EXPECTED MAXIMUM PROCEEDS TO EXISTING SHAREHOLDERS AT THE RATIO OF 3 EXISTING BTS SHARES : 1 BTS-W3 3,944,626,464 UNITS 1 BTS-W3 TO 1 NEW COMMON SHARE OF BTS THB PER SHARE THB 47,336MN Appendix 3: BTS-W3 57

58 Appendix 4: BTSC s Quality Management System ISO 14001: 2004 ENVIRONMENTAL MANAGEMENT SYSTEMS CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV). OHSAS : 2007 OCCUPATIONAL HEALTH AND SAFETY ZONE CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV). LLOYDS REGISTER RAIL LLOYDS REGISTER RAIL S BEST PRACTICE MODEL IMPLEMENTATION. ISO 9001 : 2008 QUALITY MANAGEMENT SYSTEMS CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV). Appendix 4: BTSC s Quality Management System 58