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TRANSCRIPT
JULY 2018
BTS GROUP HOLDINGS PCL
INVESTOR
PRESENTATION
prepared by Investor Relations department BTS Group Holdings PCL
IR Contact
2
This document has been prepared and distributed by the Investor Relations Department of BTS Group Holdings PCL (“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 forward-looking statements, whether as a result of new information, future events or otherwise.
Disclaimer
Address: BTS Group Holdings PCL IR Department 15th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd. Chomphon, Chatuchak, Bangkok, Thailand 10900 Telephone: +66(0) 2273 8611-15 Fax: +66(0) 2273 8610 Email: [email protected] Website: www.btsgroup.co.th
BTS Group Investor Presentation
prepared by Investor Relations department BTS Group Holdings PCL
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Contents
BTS Group Investor Presentation 3
prepared by Investor Relations department BTS Group Holdings PCL
4
BTS Group History
BTS Group Investor Presentation Section 1: BTS Group in Brief
TYONG listed on the Stock Exchange of Thailand under Property Development sector
1991
TYONG established a wholly-owned subsidiary, Bangkok Transit System Corporation Ltd. (BTSC), which won the SkyTrain concession bid
1992
Commercial operation of the BTS SkyTrain commenced
1999
BTSC exit court supervised rehabilitation procedure
2008
BTSC expanded into Media business through the acquisition of 100% of VGI Global Media Co., Ltd. (VGI)
2009
TYONG acquired 94.6% of BTSC, returning Mass Transit operations to be the primary business of the Company. The Company also changed its name to BTS Group Holdings PCL (BTSG)
2010
BTSC sold the future Net Fare-box Revenue under its Concession Agreement to BTS Rail Mass Transit Infrastructure Fund (BTSGIF)
APR 2013
VGI Global Media PCL, the Group’s Media subsidiary, listed on the Stock Exchange of Thailand
OCT 2012
BTSC signed a 30-year operating & maintenance (O&M) contract covering Green Line extensions (Saphan Taksin - Wongwian Yai - Bang Wa and Onnut - Bearing) under the purview of the Bangkok Metropolitan Administration (BMA)
MAY 2012
Company established as Tanayong Co., Ltd. (TYONG) to operate in property development field
1968
BTSG completed the entire business transfer of Unicorn Enterprise Company Limited, our former subsidiary, to U City Public Company Limited, our associate
MAR 2018
Concession Contracts of the Pink (Khae Rai to Min Buri) and the Yellow Line (Lad Prao to Sam Rong), a total length of 64.9km were awarded
JUN 2017
BTSC signed the operating & maintenance (O&M) contract with KT; a wholly owned subsidiary of the BMA. The contract covers 30.8km of Green Line Northern and Southern extensions (Mo Chit – Saphan Mai – Khu Khot and Bearing – Samut Prakarn)
MAR 2017
prepared by Investor Relations department BTS Group Holdings PCL
18.09%
BTS Infrastructure
Services Co., Ltd
1 Information based on book closure date on 14 Jun 18 with total issued shares = 11,845.5mn shares 2 BTSG holds 72.4% of VGI indirectly and directly 3 Revenue from the Company recorded under Services BU
33.33%
48.59%
Bayswater Co., Ltd.
50%
5
BTS Group Holdings PCL
BTS Group Investor Presentation Section 1: BTS Group in Brief
Business Organisation and Shareholding Structure as of 31 March 2018
BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF)
97.46%
Yongsu Co., Ltd. 100%
DNAL Co., Ltd. 100%
The Community One Co., Ltd.
100%
Kingkaew Assets Co., Ltd.
100%
Bangkok Mass Transit System PCL (BTSC)
25.02%
MEDIA BUSINESS
41% Kanjanapas Family1
34% Institutional Investors1 25% Individual Investors1
38.97%
PROPERTY BUSINESS
VGI Advertising Media Co., Ltd.
100%
888 Media Co., Ltd.
100%
100%
Master Ad PCL
30.38%
Aero Media Group Co., Ltd.
30%
VGI Global Media PCL (VGI) 2
Point of View (POV) Media Group Co., Ltd.
33.33%
MASS TRANSIT BUSINESS
Tanayong International Ltd. 100%
SERVICES BUSINESS
RabbitPay System Co., Ltd. 80%
Rabbit-Line Pay Co., Ltd.
ASK Direct Group Co., Ltd. 51%
Rabbit Insurance Broker Co., Ltd.
51%
Rabbit Internet Co., Ltd. 30%
Rabbit Rewards Co., Ltd.
100%
KMJ Co., Ltd.
BSS Holdings Co., Ltd. 90%
51% ATS Rabbit Special Purpose Vehicle Co., Ltd.
Little Corner Co., Ltd. 69%
Man Food Holdings Co., Ltd. 41.18%
HHT Construction Co., Ltd.3
51%
90% Bangkok Smartcard System Co., Ltd.
The Community Two Co., Ltd.
100%
Man Kitchen Co., Ltd.
Man Food Products Co., Ltd.
Bangkok Payment Solutions Co., Ltd.
60%
Listed entities
Subsidiaries
Associates
LEGEND
JVs
40% Demo Power (Thailand) Co., Ltd.
49%
49%
100% VGI Global Media (Malaysia) Sdn Bhd
The ICON VGI Co., Ltd.
25%
100% RB Services Co., Ltd. U City PCL
Northern Bangkok
Monorail Co., Ltd.
Eastern Bangkok
Monorail Co., Ltd.
75%
75%
Primary Kitchen Co., Ltd.
51%
100%
BTS Infrastructure Development
Co., Ltd
100%
Supremo Media Co., Ltd
25%
Group Work Co., Ltd
20%
100%
100%
100%
prepared by Investor Relations department BTS Group Holdings PCL
548 492 743
449
FY 14/15 FY 15/16 FY 16/17 FY 17/18
1,355 897
617 639
FY 14/15 FY 15/16 FY 16/17 FY 17/18
2,926 2,318 3,010
3,902
FY 14/15 FY 15/16 FY 16/17 FY 17/18
2,274 2,574 4,237
9,112
FY 14/15 FY 15/16 FY 16/17 FY 17/18
(1) FY ended 31 March
BTS Group Overview 4 Business Units with Mass Transit as our Core
MASS TRANSIT
PROPERTY
MEDIA
SERVICES
Historical operating revenues(1)
Media Revenue (THB mn)
Property Revenue (THB mn)
Services Revenue (THB mn)
Mass Transit Revenue (THB mn)
FY 17/18 Operating revenue contribution
*FY 2017/18:- Services revenue from provision of E&M works & train: THB 5,795mn, O&M Revenue: THB 1,865mn, net profit from investment in BTSGIF: THB 949mn, interest income from E&M and train procurement: THB 503mn
BTS Group Investor Presentation Section 1: BTS Group in Brief
6
*FY 2017/18:- OOH Media revenue: THB 3,558mn, Digital Services business: THB 344mn
* FY 2017/18:- Commercial Property revenue : THB 616mn, Residential Property revenue: THB 23mn
* FY 2017/18:- ChefMan revenue:- THB 128mn, HHT revenue : THB 180mn, BPS and Rabbit Rewards: THB 141mn
THB 14,102mn
Mass Transit
Media
Property
Services
65% 28%
4% 3%
prepared by Investor Relations department BTS Group Holdings PCL
FY 16/17 FY 21/22
Services
Property
Media
Mass Transit
FY 16/17 FY 21/22
Others
Services
Property
Media
Mass Transit
7 BTS Group Investor Presentation Section 1: BTS Group in Brief
Strategy and 5-Year Growth Targets Target average operating revenue and recurring net profit growth of 29% per year from FY 16/17 to FY 21/22
As a mass transit led conglomerate, the company’s key focus is on securing new mass transit lines which are authorised or set by the government at both municipal and national levels.
After securing additional lines, we capture further value from opportunities which cascade down to our other independently operating business units in Media, Property and Services. We actively pursue capital market opportunities that allow us to unlock further uplift from our assets or to allow us to recycle capital to finance future expansion sustainably.
BU 5-YEAR GROWTH DRIVERS
Mass transit Organic growth: 4-5% CAGR ridership growth, inflationary fare increase on Core Network (23.5km): pre-agreed O&M fee increase to Green Line extensions (12.8km) New contracts: 95.7km (Pink, Yellow, Dark Green North & South extensions) already secured taking total to 132km Target contracts for an additional 82.9km (Gold, Green West, Orange, LRT and Grey)
Media
Out-of-Home (Organic growth) • Transit: mass transit line expansion • Office: increased building supply • Outdoor: billboard and street portfolio expansion through new licensing agreements • Airport: increasing popularity of low cost airlines Payment & Data: expansion of our payment network through our subsidiary, Rabbit Group, and partnerships with its strategic alliances New products and synergies: new stream of revenue resulting from the full integration of 3 platforms – this can create new synergies such as optimal O2O solutions for our clients
Property Commercial: 4-5% revenue CAGR growth U City: Targets revenue and net profit of THB 9,400mn and 1,360mn, respectively by 2022
5Y CAGR ≈ 29%
STRATEGY 5-YEAR OPERATING REVENUE OUTLOOK
5-YEAR RECURRING NET PROFIT (AFTER MI) OUTLOOK
THB 1.4BN
THB 5.1BN
THB 8.6BN
THB 30.3BN
5Y CAGR ≈ 29%
prepared by Investor Relations department BTS Group Holdings PCL
+40% of digital screens
Advertising Platform
>10mn payment users
Payment Platform
>2mn daily interactions
Logistics Platform
8 BTS Group Investor Presentation Section 1: BTS Group in Brief
Business Synergy and Investment Features Benefit from Rail Mass Transit Network Expansion
U City targets
20% revenue CAGR over 5 years
• The sole concessionaire and operator of the BTS SkyTrain Core Network (Green lines), its extensions and the Bus Rapid Transit (BRT) system.
• BTSG is the controlling partner in the consortium that was awarded the Pink and Yellow monorail line concessions.
• Currently operating 38.1km (35 stations), by acquiring 4 additional lines totaling 95.7km since 1H 2017, increasing length by 3.5x compared to 2016/17
MASS TRANSIT 62% ridership market share in Bangkok
66% ridership market share in bangkok1
• The largest Out-of-Home media company in Thailand.
• A multi-faceted media services company that is pioneering data-driven, targeted advertising in Thailand.
• Uniquely exclusive long-term contracts to manage advertising space on the BTS SkyTrain Network as well as future lines secured by BTSG.
• The number one provider of a fully integrated Offline-to-Online (O2O) Solutions.
MEDIA 50%1 market share by media revenue
PROPERTY 2nd largest Hotel Company in Thailand operating globally
• U City is developing or investing in residential and recurring income properties predominantly in close proximity to mass transit lines to benefit from the “mass transit premium”
• U City is Thailand’s 2nd largest listed hotel group that directly and indirectly owns, operates or manages over 19,100 keys globally*
*as measured by keys owned, leased and managed (both operating and under contract)
5 times expected increase in BTS rail length from current 38.1km to 215km in 2022/23
1 Based on listed OOH Media Company
prepared by Investor Relations department BTS Group Holdings PCL
7,073 7,094 8,048
4,716 4,876(2)
FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18
BTSG at a Glance
PROGRESSIVE DIVIDEND POLICY
Completed Minimum THB 21bn committed dividends over 3 years:
No less than THB 6bn in FY 13/14
No less than THB 7bn in FY 14/15
No less than THB 8bn in FY 15/16
Current Policy: Not less than 50% of net profit (stand alone basis)
BTS Group Investor Presentation Section 1: BTS Group in Brief
HISTORICAL DIVIDEND PAYMENTS / DIVIDEND YIELD
KEY FIGURES (as of 31 Mar 2018)
EMPLOYEES (as of 31 Mar 2018)
Mass Transit 2,372 53%
Media 495 11%
Property 548 12%
Services 955 21%
BTS Group Holdings 148 3%
Total 4,518 100%
THB (mn) USD (mn)**
Accounting revenue 16,987 532
Operating revenue 14,102 442
Operating EBITDA 4,089 128
Net income*** 4,416 132
Total assets 106,058 3,324
Excess cash and liquid investments 31,096 975
Cash 9,458 296
Current investments 5,672 178
Long-term investments 15,948 500
Restricted deposits 18 1
**Source: Bank of Thailand; based on Interbank Exchange Rate of USD 1 = THB 31.909 as of 7 June 2018 ***to equity holders of the parent
Actual dividend paid (THB mn)
Dividend yield(1) (%)
(1) Calculated based on share price one day before the Board of Directors’ approval date for relevant dividend payment (2) Final dividend of THB 0.185 per share or equivalent to the dividend payment in the amount of not exceeding THB 2,922.1mn is subject to shareholders’ approval.
6.2% 7.8%
4.0%
7.3%
3.9%
Committed dividend period
9
prepared by Investor Relations department BTS Group Holdings PCL
0
400
800
1,200
1,600
2,000
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
BTS Daily Traded Value (RHS) BTS TB Equity SET Index Name %*
1 MR. KEEREE KANJANAPAS’S GROUP 41.1%
2 THAI NVDR CO., LTD. 9.2%
3 BANGKOK BANK PUBLIC COMPANY LIMITED 4.6%
4 SOCIAL SECURITY OFFICE 2.5%
5 STATE STREET EUROPE LIMITED 2.1%
6 SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED 2.0%
7 CREDIT SUISSE FIRST BOSTON (SINGAPORE) LIMITED 1.7%
8 UOB KAY HIAN PRIVATE LIMITED 0.9%
9 GIC PRIVATE LIMITED 0.6%
10 Mr. Min Tieanworn 0.6%
TOTAL TOP 10 SHAREHOLDERS 65.3%
Stock code BTS
Outstanding shares (mn shares) 11,940.4
Treasury shares (mn shares) 95.8
Market capitalisation (THB mn) 99,702.3
Market capitalisation (USD mn) 3,197.5
Average daily traded value (THB mn) 157.7
Average daily traded value (USD mn) 5.0
Credit Rating (by TRIS) A/Stable
BTS Group Share Information
SHARE INFORMATION (as of 31 Mar 2018)
SHARE PRICE MOVEMENT (as of 31 Mar 2018)
SHARE STRUCTURE (as of 14 Jun 2018)
TOP 10 SHAREHOLDERS (as of 14 Jun 2018)
10
THB THB mn
12M ADTV = THB 183mn
Kanjanapas family*
Institutional investors*
Others*
41% 34% 25%
Free float (as of Jun 18) 58.6%
Foreign limit 49.0%
Foreign holdings (incl. NVDR) 9.2%
*Total of 11,845,222,893 shares
BTS Group Investor Presentation Section 1: BTS Group in Brief
prepared by Investor Relations department BTS Group Holdings PCL
Contents
BTS Group Investor Presentation 11
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
prepared by Investor Relations department BTS Group Holdings PCL
Bangkok Rail Mass Transit Network At 110.8km Bangkok’s Network is Immature
12 BTS Group Investor Presentation Section 2.1: Mass Transit Business
MASTER PLAN: 515.2KM IN 2029, 24% MARKET SHARE IN 2037
Seoul 51% Hong Kong 49% Tokyo 48% Singapore 46% Guangzhou 17% Bangkok 6%
RAIL MASS TRANSIT MARKET SHARE
Tokyo 42.0 Singapore 39.4 Hong Kong 34.9 Bangkok 10.2
RAIL TRACK LENGTH PERVASION (per million population)
OPERATING LINES: 110.8KM
BTS: 38.1km (SkyTrain Green Line)
BEM: 44.2km (Blue Subway & Purple)
SRT: 28.5km (Airport Rail Link)
WEEKDAY RIDERSHIP MARKET SHARE IN 2017 (JAN-DEC)
Total Average Weekday Ridership of 1,191,390 trips
BTS 743,223
62%
BEM* 378,167
32%
ARL 70,000
6% Source: OTP, Singapore’s Land Transport Authority, Hong Kong’s Transport Department, MTR Corporation Limited, SMRT Corporation Limited, Japan Statistic Bureau
Source: United Nations Statistics Division, BTSC, BMCL, MTR Corporation Limited, SMRT Corporation Limited, official websites of rail mass transit system in major cities
Sources: Office of Transport and Traffic Policy and Planning, Bangkok Metropolitan Administration
*Includes MRTA and BMA projects
*BEM ridership excludes purple line, BTS and BEM based on company’s ridership report website as of 2017, whilst ARL is based on information as of DEC 17.
110.8km 78 stations by 3 operators
prepared by Investor Relations department BTS Group Holdings PCL
BTS Lines Expanding 3.5x from 38.1km in 2017/18 to 132km in 2021/22
13 BTS Group Investor Presentation Section 2.1: Mass Transit Business
*The first station (E15, Samrong, 1.8km) of the Southern Green Line Extension from Bearing to Samutprakan began operation on 3 Apr 17. Full operation of the Southern part is targeted in 2018.
MOCHIT TO ONNUT AND NATIONAL STADIUM TO SAPHAN TAKSIN • 23.5KM & 23 STATIONS • CONCESSION CONTRACT (1999-2029) • 13YR O&M CONTRACT (2029-2042)
ONNUT TO BEARING AND SAPHAN TAKSIN TO BANG WA • 12.8KM & 11 STATIONS • 30YR O&M CONTRACT (2012-2042)
BEARING TO SAMUTPRAKARN AND MOCHIT TO KHU KHOT • 30.8KM & 25 STATIONS • 26YR O&M CONTRACT (2017-2042)
KHAE RAI TO MIN BURI AND LAD PRAO TO SAM RONG • 64.9KM & 53 STATIONS • 30YR PPP NET COST CONTRACT
BTS NETWORK: 132KM (112 STATIONS)
SAPHAN TAKSIN – BANG WA 7.5KM
ONNUT – BEARING 5.3KM
BEARING – SAMUT PRAKARN 12.6KM
LAD PRAO – SAM RONG 30.4KM
MO CHIT – ON NUT 17.0KM NATIONAL STADIUM – SAPHAN TAKSIN 6.3KM
KHAE RAI – MIN BURI 34.5KM
MO CHIT - KHU KHOT 18.2KM
CORE NETWORK
EXT. ZONE 1
EXT. ZONE 1
EXT. ZONE 2
EXT. ZONE 2 PINK
YELLOW
CORE NETWORK
ZONE 1: GREEN LINE EXTENSIONS
ZONE 2: GREEN LINE EXTENSIONS
PINK AND YELLOW LINES
prepared by Investor Relations department BTS Group Holdings PCL
1.4
2
1.7
8
2.1
2
2.2
9
2.5
7
2.8
2
3.0
7
3.2
2
3.2
9
3.4
8
3.5
4
4.3
0
4.9
0
5.6
8
5.8
7
6.4
0
6.6
4
6.8
2
59 79
96 105 118
132 139 133 136 144 145
176 197
215 219 233 238 241
Farebox revenue (THB bn)
Ridership (mn)
1.7
3.4
6
.0
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
Core Line Zone 1
BTS Operating Lines 23.5km Core Network and 12.8km Green Line Extension
14 BTS Group Investor Presentation Section 2.1: Mass Transit Business
CORE NETWORK: 23.5KM
23 stations, 23.5km located at CBD of Bangkok Inaugural Mass Transit route, operated since Dec 1999 No revenue sharing to BMA Under 30 years concession contract (net cost model) from
1999 - 2029 In Apr 2013, BTSC sold the rights to net farebox revenue
under its concession agreement for the BTS Skytrain Core Network until Dec 2029 to BTSGIF
BTS Group used the proceeds to invest 1/3 units in BTSGIF (10 years lock-up)
17Y Farebox Revenue CAGR: 9.7% 16Y Ridership CAGR: 8.6%
RESILIENCE RIDERSHIP SINCE INCEPTION (CAGR: 9.1%)
20.1
26.8
33.5
40.2
46.9
53.6
60.3
16.0 23.0
26.0 30.0
33.0 37.0 40.0
44.0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
NO. OF STATIONS
AUTHORISED FARE (APR 13)
NEW EFFECTIVE FARE (OCT 17)
PREVIOUS EFFECTIVE FARE (JUN 13)
POTENTIAL FARE UPSIDE
DISTANCE-BASED FARE (AVG = THB 28.3/TRIP)
PPP NET COST CONTRACT O&M CONTRACT
ZONE 1: 12.8KM EXTENSIONS
(unit: THB bn)
BTSC has operated & maintained the extensions since 2009
Pre agreed fee income with no ridership risk 30-Year O&M Contract signed in May 2012:
1. Current extensions (zone 1) of 11 stations, 12.8km 2. Core Network of 23 stations, 23.5km post concession expiry (Dec 2029 – May 2042)
Zone 1: CAGR (FY16/17-FY41/42) = 3.9% Core Line: CAGR (FY30/31-FY41/42) = 3.1%
CORE NETWORK MO CHIT – ON NUT 17.0KM NATIONAL STADIUM – SAPHAN TAKSIN 6.3KM
EXT. ZONE 1
ONNUT – BEARING 5.3KM
SAPHAN TAKSIN – BANG WA 7.5KM
prepared by Investor Relations department BTS Group Holdings PCL
STEC
15%
BTS Recently-Secured Lines 30.8km New Extension and 64.9km Pink & Yellow Monorail Lines
15 BTS Group Investor Presentation Section 2.1: Mass Transit Business
BTSC has the operated & maintained of the additional 30.8km of Green Line extensions on 31 Mar 17
Pre agreed fee income with no ridership risk 26-year O&M contract covers 30.8km of
Northern and Southern Green Line Extensions (Apr 17 – May 42) • SOUTHERN: Bearing – Samut Prakarn (12.6km/ 9 stations) • NORTHERN: Mo Chit – Saphan Mai – Khu Khot
(18.2km/ 16 stations)
PPP NET COST CONTRACT WITH SUBSIDY O&M CONTRACT
PINK YELLOW
Route Kae Rai – Min Buri
Lad Prao – Sam Rong
Distance / no. of stations 34.5km / 30 30.4km / 23
Required trains 42; 4-car train (168 cars )
30; 4-car train (120 cars )
Contract length 30yr operation 30yr operation
Daily ridership in Y1 199k trips 195k trips
Ridership CAGR (30Y) 5.2% 4.5%
Average fare in Y1 THB 34.7/ trip THB 30.0/ trip
EBITDA margin (%)
26% at early stages rising to 69% at Y30
34% at early stages rising to 64% at Y30
Commercial revenue 10% of farebox revenue
15% of farebox revenue
Total Project Cost THB 49.4bn THB 46.7bn
Civil Subsidy Amount THB 22.5bn THB 25.05bn
Civil Subsidy Term
Equal payment at 2.25bn p.a. for 10 years from beginning of operation
Equal payment at 2.505bn p.a. for 10 years from beginning of operation
Sharing to MRTA THB 250mn THB 250mn
Funding (D/E) 2.5x 2.5x
OWNERSHIP STRUCTURE
PR
OJE
CT
DET
AIL
S EX
PEC
TED
RID
ERSH
IP A
ND
R
EVEN
UE
PR
OJE
CT
CA
PEX
& F
INA
NC
ING
EASTERN BANGKOK MONORAIL COMPANY
LIMITED
NORTHERN BANGKOK MONORAIL COMPANY
LIMITED
PINK LINE PROJECT (INCLUDE EXTENSIONS)
YELLOW LINE PROJECT (INCLUDE EXTENSIONS)
BTS
75% RATCH
10%
ZONE 2: 30.8KM NEW EXTENSIONS PINK AND YELLOW LINE MONORAIL: 64.9KM
MO CHIT - KHU KHOT 18.2KM
BEARING – SAMUT PRAKARN* 12.6KM
YELLOW LAD PRAO – SAM RONG 30.4KM
EXT. ZONE 2
EXT. ZONE 2
KHAE RAI – MIN BURI 34.5KM
PINK
YELLOW
prepared by Investor Relations department BTS Group Holdings PCL
BTS Group Investor Presentation Section 2.1: Mass Transit Business
BTS Targeted Lines Interested in an additional 302.9km
BANG WA - TALING CHAN 7.0km
BANG NA – SUVARNABHUMI 18.3Km
WATCHARAPHON – THONG LO 16.3km
THAILAND CULTURAL CENTER - MIN BURI 22.6km
TALING CHAN - THAILAND CULTURAL CENTER 17.0km
KRUNG THON BURI – KLONG SAN 1.7km
16
WESTERN ORANGE LINE EASTERN ORANGE LINE
WESTERN GREEN LINE EXT.
GREY LINE (PHASE 1)
LRT
GOLD LINE (PHASE 1)
302.9KM FUTURE LINES IN THE NEXT 5 YEARS BTS TARGET ROUTE AUTHORITY DISTANCE
(KM) NO. OF
STATION EXPECTED
OPERATING
GOLD PHASE 1 KRUNG THON BURI – KLONG SAN BMA 1.7 3 2020
GREEN EXT. (WESTERN)
BANG WA - TALING CHAN
BMA 7.0 6 2022-2023
LRT BANG NA - SUVARNABHUMI BMA 18.3 14 2022
GREY PHASE 1 WATCHARAPHON – THONG LO BMA 16.3 15 2022
ORANGE (E) THAILAND CULTURAL CENTER - MIN BURI
MRTA 22.6 17 2023
ORANGE (W) TALING CHAN - THAILAND CULTURAL CENTER
MRTA 17.0 12 2023
HIGH SPEED RAIL
DON MUEANG – SUVARNABHUMI – U-TAPAO
SRT 220.0 9* 2024
OTHER ROUTE AUTHORITY DISTANCE (KM)
NO. OF STATION
EXPECTED OPERATING
BLUE HUA LAMPHONG - BANG KHAE
MRTA 14.0 11 2020
BLUE BANG SUE - THA PRA MRTA 13.0 9 2020
BLUE BANG KHAE – BHUDHAMONTHON 4 MRTA 8.0 4 2021
DARK RED BANG SUE - RANGSIT SRT 26.3 8 2021
DARK RED BANG SUE – HUA LUM HONG SRT 6.5 5 2020
LIGHT RED BANG SUE – PHAYATHAI – MAKKASAN – HUAMAK
SRT 19.0 9 2020
LIGHT RED BANG SUE – TALING CHAN SRT 15.0 4 2021
PURPLE (SOUTHERN)
TAO POON – RAT BURANA MRTA 23.6 17 2022
TOTAL 428.3
Under construction (including Extension Zone 2, total of 119.9km under construction) NOTE: *Excluding 6 stations in ARL
prepared by Investor Relations department BTS Group Holdings PCL
Timeline of Upcoming Lines and CAPEX Significant Upcoming Revenue Expected in the Next 5 years
BTS Group Earnings Presentation Section 2.1: Mass Transit Business
95
.7K
M A
WA
RD
ED L
INES
3
02
.9K
M B
TS T
AR
GET
ED L
INES
SOUTHERN GREEN LINE EXTENSION: 12.6KM
NORTHERN GREEN LINE EXTENSION: 18.2KM
PINK LINE: 34.5KM
YELLOW LINE: 30.4KM
WESTERN GREEN LINE EXTENSION: 7.0KM
GOLD LINE PHASE 1: 1.7KM
LRT: 18.3KM
GREY LINE PHASE 1: 16.3KM
ORANGE LINE: 39.6KM
NOTE: 1Under the terms of the contract signed on 28 June 2016 with Krungthep Thanakom (KT) - a wholly owned subsidiary of the BMA (Bangkok Metropolitan Administration). BTSC is pre-financing E&M provision and installation. KT will repay the costs of E&M works in a lump sum amount after four years after contract signing date. 2Project cost (excluding interest expenses) for the Pink and Yellow based on MRTA submission and BTS owns 75% equity stake in JV Cos. Calculation based on D/E ratio at 2.2x (equity required of THB 21bn). The JV Cos will receive civil work subsidy from the MRTA of THB 22.5bn (for the Pink Line) and THB 25.05bn (for the Yellow Line) for 10 years from beginning of operation. 3Assume O&M revenue of THB 140mn/km p.a. 4Excluding land acquisition of THB 3.6bn.
17.31
34.52 CIVIL + TRAINS + E&M
32.62
CIVIL + TRAINS + E&M
2.1
0.4
3.6
12.9 TRAINS + E&M
33.3 TRAINS + E&M
4.5 – 5.03 (Y1)
BY 2022
BY 2020
BY 2022
BY 2023
BY 2022
OCT 2021 MID 18
BY 2019
BY 2018
BY 2018
BY 2018
MID 2017 BY 2019
DEC 2018 2041/42
OCT 2021 MID 18 2051/52
MID 2020 2041/42
2051/52
EXPECTED TIMELINE
FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23
EXPECTED CAPEX (THB BN)
EXPECTED REVENUE (THB BN P.A.)
FAREBOX REVENUE
O&M REVENUE
FY 23/24
FY ended 31 March
TRAINS E&M WORKS
9.8
5.0
4.5 – 5.0 (Y1)
START CIVIL WORKS CONSTRUCTION
START FULL OPERATION CONSTRUCTION PERIOD
OPERATION YEAR, UP UNTIL EXPECTED OPEN BID/ AWARD BIDDING & CONSTRUCTION PERIOD
TOTAL CAPEX/FINANCING
THB 316.6bn
17
HIGH SPEED RAIL: 220.0KM
BY 2024 BY 2018
FY 24/25
165.14 CIVIL + TRAINS + E&M
prepared by Investor Relations department BTS Group Holdings PCL
BTS’s 5-year Target of Network Expansion Quintuple Growth from 38.1km in 2018 to 215km in 2023
BTS Group Investor Presentation Section 2.1: Mass Transit Business
18
38.1
35
48.9
43
50.7
44
68.8
62
175.3
150
215
179
Samrong (1.8km) began operation
South ext. (12.6km)
1st station of North ext. (1.8km)
North ext. (18.2km) Gold line (1.7km)
Pink line (34.5km) Yellow line (30.4km) Western Green ext. (7km) LRT (18.3km) Grey line phase1 (16.3km)
Orange line (39.6km)
FY 17/18 FY 22/23 FY 19/20 FY 20/21 FY 18/19 FY 21/22
Full operation
Partial operation
Distance (km)
No. of stations 400km Total network in 2023 from 110km currently
215km Targeted BTS network in 2023 from 38.1km currently
120km Lines under construction
prepared by Investor Relations department BTS Group Holdings PCL
Contents
BTS Group Investor Presentation 19
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
prepared by Investor Relations department BTS Group Holdings PCL
2013/14 2014/15 2015/16 2016/17 2017/18
TV Traditional media OOH media Cinema Online* Digital adspend (DAAT)**
100bn
64.8%
13.4% 13.3% 7.0% 1.5%
Focusing on the Highest Growth Media Segments OOH and Online
20 BTS Group Investor Presentation Section 2.2: Media Business
Rising in infrastructure, urbanisation and increasing number of people who spend time outdoor were driven the growth of Thailand OOH Media.
VGI GROUP’S FOCUS
• Our focus has proven to be the fastest growth media sector OOH (Out-of-Home)
• Thailand’s no. 1 transit media with 60% of market share
• The sole player in office building media with 162 Grade A&B buildings under management
• Strong nationwide footprint in outdoor media with >2,200 billboards
• Thailand’s no. 2 aviation media with 20% market share Online
• Thailand’s no. 1 activation operator with 70% market share
• The first mover in Thailand who established the integrated online and offline media platform
OOH MARKET SHARE: VGI GROUP VS PEERS
VGI controls almost half of the OOH media market share. Thanks to our continuing organic growth and participating in M&A.
ADVERTISING MARKET 5 YRS CAGR (2011/12 – 2016/17) 5 YRS HISTORICAL ADVERTISING SPENDING (THB bn)
2,838 3,149 3,678 3,021 3,537
3,352 4,082 2,715 3,223
4,297
6,189 7,231
6,393 6,244
7,834
2012/13 2013/14 2014/15 2015/16 2016/17VGI Group Revenue Peers
45.8% 43.6% 57.5% 48.4%
1
54.2% 56.4% 42.5%
51.6%
45.2%
54.8%
Coup d’etat Shutdown BKK Mourning effect
ON LINE
OOH MEDIA
The accelerated growth of online, digital and OOH media fueled by migration to mobile devices and increased consumer media exposure as people spend more time out of home.
VGI’s Focus
* Online adspend includes banner ad on 50 websites and 10 mobile sites ** based on December year-end Source: The Nielsen (Thailand) Co., Ltd. and Digital Advertising Association Thailand (DAAT)
113bn
62.3%
23.3% 9.0% 4.7% 0.8%
107bn
65.7%
16.0% 11.3% 5.5% 1.6%
120bn 1.0%
68.5%
18.0% 8.0% 4.4%
121bn 0.8%
68.0%
19.4%
3.7% 8.1%
4bn 6bn 8bn 9bn
12bn
-19.7%
-13.1%
-10.8%
-2.7%
-0.7%
9.9%
18.3%
34.8%
In-store
Traditional media**
Analogue TV
Total industry
Cinema
OOH
Online
Digital*
* Digital adspend based on December year-end reported by DAAT ** traditional media includes Radio, Newspapers, Magazines
1 terminated Modern Trade business Note: VGI’s market share is based on 35% nominal market discount rate Source: The Nielsen (Thailand) Co., Ltd
prepared by Investor Relations department BTS Group Holdings PCL
A Well-Diversified Out-of-Home Media Business
BTS Group Investor Presentation Section 2.2: Media Business
21
VGI GROUP
BKK, Thailand KL, Malaysia
BKK, Thailand Nationwide, Thailand KL, Malaysia
Nationwide, Thailand Yangon, Myanmar
Nationwide, Thailand
Nationwide, Thailand
Nationwide, Thailand
OOH Media Platform Digital Services
THB 3,559mn THB 378mn
30.4% 30.0% 40.0% 90.0% 90.0% 100.0%
TRANSIT OFFICE OUTDOOR AVIATION ACTIVATION PAYMENT SERVICES
MACO AERO MEDIA DEMO POWER BSS & BSSH VGI COMPANY SEGMENT
GEOGRAPHICAL ACTIVITY
LEADING POSITION & NETWORK
AUDIENCE REACH
KEY GROWTH AREA
SEGMENT
2017/18 REVENUE1
No. 1 in Transit media
31.0km, BKK 51.0km, Malaysia
No. 1 in Office media
174 office building 281 condominium
No. 2 in Outdoor media
>2,000 billboards
No. 2 in Aviation media
15 airports
The largest Activation services
>1,000 stores
8.9mn cardholders 2.9mn LINE pay users
>1,300mn outstanding loan
Additional inventory from BTS’s new line extensions
Grade B&C and upcountry market
To convert 10% of static billboards to digital screens
Expand to airports in South East Asia
Potential expansion in BTS stations and office buildings
Expand Rabbit card & Rabbit Line Pay network
Rabbit’s data
Expand insurance and micro loan network
1 Excluding revenue from Titanium Compass, Aero Media and Demo Power of which are recognised as equity method
40mn potential reach 16mn users
The largest micro payment platform
prepared by Investor Relations department BTS Group Holdings PCL
Digital Services: Synergy between VGI and Rabbit Rabbit Platform’s Database
22
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.
OFFLINE PAYMENT: RABBIT CARD
8.9mn Rabbit cards in circulation
(as of Mar 2018)
BTS Group Investor Presentation Section 2.2: Media Business
LARGE PARTNERS NETWORK BUILT
157 brand
partners
5,680 Card
readers
Use on BTS SkyTrain & BRT
Use in retail stores
ONLINE PAYMENT: RABBIT LINE PAY
A mobile e-wallet solution embedded in the leading chat messenger application.
SERVICES BUSINESS
JV with AEON: THB 1.3bn outstanding loans Micro loan through the joint venture with AEON
Rabbit Daily: 3mn monthly visits Online lifestyle publisher, providing social news and entertainment content and advertorials
Rabbit Insurance Broker: More than THB 16mn gross written premiums per month Insurance aggregator services on Rabbit Finance website and also a licensed broker for insurance products.
Co-branded Card: BBL co-branded card & AIS-Rabbit card Issued by financial institutions or corporations that wish to add Rabbit functionality to credit card, debit card, or other card types or devices
2.9mn users
>670 merchants
prepared by Investor Relations department BTS Group Holdings PCL
One-Stop Shop Solutions Combining offline out-of-home (OOH) media with online and data
BTS Group Investor Presentation Section 2.2: Media Business
23
ONE-STOP SHOP SOLUTIONS
OFFLINE/ OOH
• No. 1 Transit media in Bangkok
• No. 1 Office media in CBD Bangkok
• No. 2 Outdoor media nationwide
• No. 2 Aviation media
• No. 1 Activation media
Transit Office Outdoor
Aviation Activation
Full service OOH media platform
O2O SOLUTIONS
• Creating awareness through offline OOH platform
• Bridging with our database, creating engagement opportunity for targeted audience
• Activating conversion at last mile touch point
• Completing the customer journey
Integrating Offline and Online world
ONLINE/ DATA
• Partnership with No. 1 market leaders
>1mn BTS daily commuters
>45mn LINE users
>40mn AIS users
>5mn Kerry customers
Over 40mn data points
prepared by Investor Relations department BTS Group Holdings PCL
772,132 932,000
1,065,000
2016/17 2021/22
Ridership from VGI’s existing network
2017/18 2021/22 E
CORE + EXTENSION 208 236
GREEN (SOUTHERN) NONE 60
GREEN (NORTHERN) NONE 84
PINK NONE 168
YELLOW NONE 120
GREEN EXT. (WESTERN) NONE 32
LRT NONE 64
GREY (PHASE I) NONE 72
TOTAL 208 4.0X 836
TOTAL SECURED 208 3.2X 668
Solid Growth Opportunities Upside from BTS Rail Mass Transit Expansion and Monetisation of Rabbit’s Data
2MN TARGETED ADVERTISING VIEWERS
3.8X EXPECTED INCREASE IN BTS TRAIN CAPACITY 4.9X EXPECTED INCREASE IN BTS STATION CAPACITY
New extensions are expected to add more than 1 million passengers daily. Together with our existing networks, the exposure to VGI advertising is expected to increased by 2.9X.
24 BTS Group Investor Presentation Section 2.2: Media Business
2020/21 GOALS Revenue of THB 10,000mn (37% 2-Year CAGR) NPAT 42% 2-Year CAGR
2.6X increased
Ridership from New extensions
1,997,000
2017/18 2021/22 E
CORE + EXTENSION 30 34
GREEN (SOUTHERN) NONE 9
GREEN (NORTHERN) NONE 16
PINK NONE 30
YELLOW NONE 23
GREEN EXT. (WESTERN) NONE 6
LRT NONE 14
GREY (PHASE I) NONE 15
TOTAL 30 4.9X 147
TOTAL SECURED 30 3.6X 108
To create targeted media through Rabbit’s data across BTS’s existing and future media platform
Improved occupancy by monetising rabbit’s data and BTS platform
80% 95%
20% 5%
3YRS AVG. 2017/18 - 2020/21
Successful case: 11 STREET Station Sponsorship (launched in February 2017) • Innovative Rabbit Media has partnered with
11 STREET, which stimulates the 3 key senses – touch, sight and sound.
• Leveraging on the data analysis of travel behavior coupled with strategically selected VGI’s media
Occupied inventory
Unoccupied inventory
FIRST PHASE OF MONETISING RABBIT’S DATA AND PLATFORM
prepared by Investor Relations department BTS Group Holdings PCL
Contents
BTS Group Investor Presentation 25
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
prepared by Investor Relations department BTS Group Holdings PCL
47% 63% 60%
48%
70%
65% 46%
48%
76%
64% 58%
78%
75%
60%
75%
65%
0
50,000
100,000
150,000
200,000
250,000
300,000
0 - 200m(CAGR +22.4%)
201 - 500m(CAGR +10.7%)
501 - 1,000m(CAGR +19.7%)
Over 1,000m(CAGR +6.0%)
Baht/sqm
2014 2015 2016 2017
56% 61% 60% 57%
0
5,000
10,000
15,000
20,000
25,000
2014 2015 2016 2017
Units
1Q 2Q 3Q 4Q Average Take-up Rate (RHS)
34,666 50,105 39,046 58,424
26
BANGKOK CONDO LAUNCHES AVG. PRICES AND TAKE-UP RATES BY DISTANCE TO BTS
Property Business Industry Overview
Source: Colliers International (Thailand) Source: Colliers International Thailand
BTS Group Investor Presentation Section 2.3: Property Business
INTERNATIONAL TOURIST ARRIVALS IN THAILAND GLOBAL INTERNATIONAL TOURIST ARRIVALS
Source: Department of Tourism, Ministry of Sports and Tourism Source: UNWTO
19.2 22.4
26.5 24.8
29.9 32.6
35.4
2011 2012 2013 2014 2015 2016 2017
Millions of Persons
994 1,040 1,088 1,134 1,184 1,235 1,322
2011 2012 2013 2014 2015 2016 2017
prepared by Investor Relations department BTS Group Holdings PCL
2%
9%
3%
72%
15%
BTS Commercial (q)
BTS Residential (o - p)
U City Commercial (k - n)
U City Residential (a - j)
Property Portfolio and Business Strategy U City is the Dedicated Vehicle for Property Development
27
PROPERTY BOOK VALUE BREAKDOWN
BTS Group Investor Presentation Section 2.3: Property Business
OUR HOTEL PORTFOLIO UNDER U CITY
Owners Total Area (Rai) Total Area (sq.m)
BTS Group Plc 489.4 782,966.0
Bayswater JV 48.8 78,051.2
U City Plc 766.1 1,225,707.6
Total 1,304.3 2,086,724.8
Includes Upcountry, BKK & Vicinities land bank, not equity stake adjusted
ATTRACTIVE LAND BANK
Under No. of Hotels No. of Keys U City’s Stake
Directly-held 6 1,179 100%
Owned* 4 1,052 100%
Leased 2 127 100%
Vienna House 40 7,832 100%
Owned 18 2,881 100%
Leased 10 2,378 100%
Managed 12 2,573 100%
AHS 46 10,233 50%
Managed 46 10,233 50%
Grand Total 92 19,244
BTS Group Land Bank
U City Land Bank Bayswater JV Land Bank
Projects and Properties Land Bank
Projects and Properties a. The LINE Jatujak – Mochit b. The LINE Ratchathewi c. The LINE Asoke-Ratchada d. The BASE Garden Rama 9 e. The LINE Pradipat f. The LINE Sukhumvit 101 g. KHUN BY YOO h. The BASE Petkasem 29 i. The LINE Sathorn j. The LINE Wongsawang k. TST Tower Office Building l. U Sathorn Hotel m. Eastin Grand Sathorn Hotel n. The Unicorn o. The Grand p. The Royal Place II q. Thana City Golf & Sports Club
a e
k
c d
LAND: OVER 670,000M² OF OPPORTUNITY IN BANGKOK ALONE
b
o p
f
g
q l m h
Kukot 56.5 rai (9.4 ha)
Thana City 308.6 rai (49.7 ha)
Bayswater JV 48.8 rai (7.8 ha)
* Data as of 31 Dec 17
Residential THB 0.5bn
Total Book Value as of 31 Mar 18:
THB 28.2bn
U City
THB 20.2bn
Bayswater JV THB 4.3bn
* Adjusted for equity stake
Commercial THB 2.5bn
Land Bank THB 0.8bn
i
j
Ratburana & Suksawad 44.1 rai (7.6 ha)
n
*Includes financial lease hotels and hotels currently under construction
prepared by Investor Relations department BTS Group Holdings PCL
U City’s Business Overview Currently Over 19,000 Hotel Keys and 27,000 sqm of Office Space
28 BTS Group Investor Presentation Section 2.3: Property Business
RECURRING INCOME PROPERTY (as of June 2018)
33 Gracechurch Street
• Austria • Belarus • Czech Republic • France • Germany • Poland • Romania • Russia • Slovakia • United Kingdom
Interests in 10 European Countries
• Thailand • Vietnam • Indonesia • India • Oman
Interests in 5 Asian & Middle Eastern Countries
6-14 Underwood Street TST Tower
OFFICE
The Unicorn
MIXED USE EDUCATION
Verso International School
HOSPITALITY
U Chiang Mai Hotel
U Sathorn Hotel
Vienna House Hotels
Eastin Grand Sathorn Hotel
prepared by Investor Relations department BTS Group Holdings PCL
U City’s Business Overview Globally Developing and Investing in Diversified Property
29
THB 32.3bn
THB 4,453mn
FY 2017 REVENUE CONTRIBUTION
Office THB 162mn
3.6%
Others THB 423mn
9.5%
Hospitality THB 3,868mn
86.9%
DECEMBER 2017 BOOK VALUE BREAKDOWN
Office THB 3.4bn
10.5%
Hospitality THB 18.4bn
57.0%
Land bank THB 10.0bn
30.9%
RECURRING INCOME PROPERTY
RESIDENTIAL PROPERTY
LANDBANK
Hospitality 92 Hotels totaling over 19,200 keys includes a portfolio of owned, leased and managed hotels in Europe and Asia.
Office 28,500 sqm of lettable space comprising of 2 office buildings in London, UK and 1 office building in Bangkok, Thailand.
Through a 50% stake in the BTS-Sansiri JV, which develops condominiums near mass transit lines and has currently a presold condominium backlog of THB 26.1bn
U City’s land bank totals THB 7.4bn or 766.1 Rai or 1.23mn sqm of land, which is sufficient for over 5 years of development. 67% of land bank value is located adjacent to future or current mass transit lines and is therefore well-positioned to benefit from the ‘mass transit premium’
806 1,027
3,868
2015 2016 2017
0
63
162
2015 2016 2017
159
0 0
2015 2016 2017
Operating Revenue (THB mn)
Residential THB 0.5bn
1.6%
BTS Group Investor Presentation Section 2.3: Property Business
prepared by Investor Relations department BTS Group Holdings PCL
U City’s Strategy and 5-Year Target Poised for Substantial Growth Ahead
30
2,620
176 1,204
1,380
FY 2017 Hospitality Office Alternatives Residential FY 2022
5 PILLARS OF SUSTAINABLE VALUE ACCRETION
FY 2017 FY 2022
Operating Revenue
Recurring Net Profit
Operating Revenue 20% CAGR
Recurring Net Profit 15% Margin*
Key Growth Drivers
Hospitality From 8,648 Keys Operating to 19,244 Owned hotels revenue 5% CAGR
Office Full-year effect of acquisitions and rent reversion
Alternatives Share of profit from international school, The Unicorn mixed-use building
Residential Future gross development value of THB 72bn of 12 condominium projects
CAPEX / Investment 5-year aggregate of THB 14.6bn
5-YEAR TARGET – Operating Revenue of THB 9,400mn, Recurring Net Profit of 1,360mn
Operating Revenue Development (Growth 2017 - 2022)
* Note: revenue includes share of profit in BTS-Siri JV, Keystone JV and Property management services revenue
9,400
4,030
2. EFFICIENT USE OF
CAPITAL
• Recycle capital for future
investment.
• Potential for fee-based
income.
3. SUSTAINABILITY
• Respond to changes in
consumer lifestyles,
including digital disruption
• Environmental awareness
• Benefit to communities
• Enterprise Value/Return
To Shareholders
4. PARTNERSHIPS
• Access to expertise and
new business
opportunities
• Reduce development
and investment risk
• Increase long-term firm
value and synergies
1. INVESTMENT
• Diversified portfolio
• Grow through project
development and acquisition
• Enhance value through
prudent management and
value engineering
• Maximize synergy
5. MASS TRANSIT LINK
• To benefit from the
‘mass transit premium’
4,030
9,410
72% Overseas 28% Thailand
59% Overseas 41% Thailand
1,360
(127)
BTS Group Investor Presentation Section 2.3: Property Business
(THB mn) ( THB mn)
prepared by Investor Relations department BTS Group Holdings PCL
Contents
BTS Group Investor Presentation
31
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
prepared by Investor Relations department BTS Group Holdings PCL
Services Business Strategic Support and Business Incubator
32
Premium Chinese restaurant chain managed by Man Kitchen
As of 31 Mar 2018, 8 existing branches:
3 dine-in branches, 1 take-away branch, 2 Chairman by Chef Man (Hong Kong
Café concept), 1 private dining concept under M Krub restaurant and 1 Man
Kitchen buffet
Managed a loyalty and benefits programme for consumers who transact with the
Rabbit Card and/or Rabbit Line Pay
The Rabbit Points can be redeemed for vouchers across our retail partner network
and additional Rabbit Rewards partners.
In FY 2017/18, the programme had 3.2million registered members.
CHEFMAN RESTAURANTS BANGKOK PAYMENT SOLUTIONS (BPS)
Eastin Grand Sathorn Branch
BTS Group Investor Presentation Section 2.4: Services Business
Thana City Branch
In June 2017, Chef Man added a new strategic JV partner Bangkok Ranch (BR), a
listed and leading purveyor of duck meat through a capital increase. BR’s
extensive food processing expertise will enable Chef Man to scale-up its
business domestically and internationally.
41%
Man Food Holdings
41% 18%
Bangkok Ranch BTS Group Chef Man
BTSG and BR have an option to increase stake up to 42.5% in Man Food Holdings. Expected final shareholding in Man Food Holdings of 42.5% : 42.5% : 15% between BTS Group : BR : Chef Man
Joint venture between BTSG and VIX Group, a leading technology development for
Central Clearing House (CCH) and Automatic Fare Collection (AFC) services
Served as a vehicle for developing software and providing technology services for
an integrated mass transit and payment systems for Thailand
In FY 2017/18, BPS recognised revenue from sales of fully-equipped EDC machines
and revenue from software development services.
RABBIT REWARDS PROGRAMME
Joint venture between BTSG and Li Kay Engineering, a Hong Kong based
civil and foundation company
HHT CONSTRUCTION
prepared by Investor Relations department BTS Group Holdings PCL
Contents
BTS Group Investor Presentation 33
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
prepared by Investor Relations department BTS Group Holdings PCL
KEY FINANCIAL RATIOS FY 17/18 FY 16/17 FY 15/16 FY 14/15
Profitability ratios (%) Gross operating profit margin 41.0% 51.9% 60.4% 55.5% SG&A to operating sales ratio 17.3% 24.6% 24.6% 22.0% Accounting EBITDA margin 42.3% 41.2% 59.7% 52.0% Operating EBITDA margin(1) 29.0% 34.0% 42.9% 39.9%
Recurring net profit margin (%) 16.0% 15.4% 29.2% 28.2%
Liquidity ratio Current ratio (times) 0.93x 1.38x 0.81x 3.96x Leverage (Times) Total liability to total asset 0.56x 0.52x 0.28x 0.22x Total liability to total equity 1.29x 1.07x 0.39x 0.28x
Interest bearing debt to equity 1.02x 0.85x 0.20x 0.09x Adj. net debt(5) to equity 0.37x 0.13x (0.13)x (0.40)x Adj. net debt(5) to operating EBITDA 4.19x 2.07x (2.23)x (7.32)x Interest coverage(3) 3.31x 4.55x 9.30x 7.03x Per share ratios Book value per share (THB) 3.92 3.82 3.96 4.38 Dividend yield (4) 3.95% 4.00% 7.75% 6.38%
FY 17/18 OPERATING REVENUE & EBITDA CONTRIBUTION
(1) Operating EBITDA excludes non-recurring items but includes share of profit (loss) from BTSGIF (2) Net income attributable to equity holders of the parent (3) Operating EBITDA/finance cost (4) Interim and Final dividends, calculated on annual basis using BTS TB closing share price on the date
of the Board of Directors’ meeting approving the relevant dividend (5) Interest bearing debt - cash and cash equivalent and liquid investment
OPERATING REVENUE COMPARISON (YoY)
34
CONSOLIDATED P&L (THB MN) FY 17/18 FY 16/17 FY 15/16 FY 14/15
Operating revenues 14,102 8,606 6,280 7,102
Accounting revenues 16,987 9,618 10,069 8,126
Operating expenses 8,325 4,143 2,489 3,163
EBITDA 7,571 4,114 6,254 4,937
Operating EBITDA(1) 4,089 2,928 2,693 2,836
Net income(2) 4,416 2,003 4,134 2,944
DEBT INFORMATION (THB MN) 31 MAR 18 31 MAR 17 31 MAR 16 31 MAR 15
Interest bearing debt 47,124 38,310 9,283 4,556
Adj. net debt (5) 17,129 6,051 (6,012) (20,755)
BTS Group Investor Presentation Section 3: Financial Summary
BTS Group Financial Performance
Note: Revenue and EBITDA excludes equity income from Sansiri JV, U City, Bayswater JV, Keystone JV
THB 14,102mn
THB 4,089mn
Mass Transit Media Property Services
Revenue Contribution
EBITDA Contribution
8,606
14,102 4,875 893 (294)
FY16/17 Mass Transit Media Property Services FY17/18
4%
(40%)
30% 115%
(THB mn)
22
60% 42%
-0.1%
-1.6%
65% 28%
4%
3%
prepared by Investor Relations department BTS Group Holdings PCL
Balance Sheet
35 BTS Group Investor Presentation Section 3: Financial Summary
45,182 46,355
29,833 36,779
18,616 22,923
31 Mar 17 31 Mar 18
Total shareholders' equity Total non-current liabilities Total current liabilities
106,058 93,631
67,909 84,747
25,722 21,311
31 Mar 17 31 Mar 18
Total non-current assets Total current assets
106,058 93,631
Cash
31 Mar 17: THB 15.09bn
31 Mar 18: THB 9.46bn
Current Investments
31 Mar 17: THB 6.24bn
31 Mar 18: THB 5.67bn
Long-Term Investments
31 Mar 17: THB 13.52bn
31 Mar 18: THB 15.95bn
Gross Debt
31 Mar 17: THB 38.31bn
31 Mar 18: THB 47.17bn
Adjusted Net Debt*
31 Mar 17: THB 6.06bn
31 Mar 18: THB 17.13bn
*****
Issued Ordinary Shares
31 Mar 17: 11,935.0mn
31 Mar 18: 11,940.4mn
73%
27% 20%
80%
22%
44%
34%
48%
20%
32%
FY 2017/18: 1.02x FY 2016/17: 0.85x
Gross Debt to Equity
FY 2017/18: 0.37x FY 2016/17: 0.13x
Adjusted Net Debt* to Equity
FY 2017/18: 3.02x FY 2016/17: 1.72x
Adjusted Net Debt* to Recurring
Operating EBITDA
FY 2017/18: 3.31x FY 2016/17: 4.55x
Interest Coverage
FY 2017/18: 0.93x FY 2016/17: 1.38x
Current Ratio
ASSET BREAKDOWN (THB MN)
LIABILITIES AND EQUITY BREAKDOWN (THB MN)
KEY RATIOS
*Adjusted Net Debt = Interest Bearing Debt – Cash and Cash Equivalent and Liquid Investment
prepared by Investor Relations department BTS Group Holdings PCL
36
MED
IA
2018/19 BTS Group Targets and CAPEX
FY 2018/19 BTS GROUP TARGETS
THB 4.4-4.6bn Targeted Media Revenue
4-5% Core Network ridership growth
1.5-2% Core Network average fare increase
30% Train O&M revenue growth
THB 7-9bn Revenue from E&M provision for Green Line South and North extensions and train procurement for Green Line extension
THB 350mn Targeted BTS Group Property Revenue
(more details in U City presentation)
THB 20-25bn Construction revenue for Pink and Yellow Lines
THB 6-6.7bn Targeted U City Property Revenue
≥ 25% EBITDA margin (at U City level)
40-45% EBITDA margin
20-25% NPAT margin
THB 0.6-0.7bn Interest income from train procurement for Green Line extensions and construction revenue for Pink and Yellow lines
MA
SS T
RA
NSI
T
FY 2018/19 CAPEX: THB 27-34BN
THB 26-32bn (Excludes: BTSGIF CAPEX ) •THB 6-7bn E&M and rolling stocks for Green
Line South and North extensions •THB 20-25bn for Pink and Yellow
construction
THB 1.1bn
THB 0.4bn (Excludes: Real estate development cost)
PR
OP
ERTY
BTS Group Investor Presentation Section 3: Financial Summary
prepared by Investor Relations department BTS Group Holdings PCL
Contents
BTS Group Investor Presentation 37
Section 1 BTS Group in Brief
Section 2 Business Segment Profiles
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3ction 3 Financial Summary
Appendices
prepared by Investor Relations department BTS Group Holdings PCL
Apr 17: Opening of Samrong Station
1.4
2
1.7
8
2.1
2
2.2
9
2.5
7
2.8
2
3.0
7
3.2
2
3.2
9
3.4
8
3.5
4
4.3
0
4.9
0
5.6
8
5.8
7
6.4
0
6.6
4
6.8
2
59
79
96 105
118 132
139 133 136 144 145
176
197
215 219 233 238 241
00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18
Farebox revenue (THB bn) Ridership (mn)
Appendix 1: Core Network Ridership Uninterrupted Revenue Growth and Resilient Under Pressure
38
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 GROWTH (3 YRS RIDERSHIP CAGR: 21%) STABLE GROWTH (5 YRS RIDERSHIP CAGR: 5%) FASTER GROWTH (9 YRS RIDERSHIP CAGR 7%)
Dec 99: BTS SkyTrain service opening
Mar 07: First fare rate increase
May 09: Opening of Silom Line extension
Farebox revenue CAGR: 9.7% Ridership CAGR: 8.7%
GROWTH (17 YRS)
Jan-Mar 14: Bangkok
Shutdown
May 14: Martial law
Oct 16: The passing of
His Majesty King Bhumibol
Aug 16: Opening of
Bangkok MRT System (Purple line)
Oct 17: Fare Increased
Ridership +1.3% YoY
Fare +1.4% YoY
Aug 17: Opening of Tao Poon Station (Blue line ext.)
BTS Group Investor Presentation Appendix 1: Core Network Ridership
Apr 13: Sale of net farebox revenue to BTSGIF Jun 13: Fare increase
Dec 13: Wongwian Yai – Bang Wa extension opening
Nov 13: Thai political protests
prepared by Investor Relations department BTS Group Holdings PCL
15.0
22.0 25.0
28.0
31.0 34.0
37.0
42.0
20.1
26.8
33.5
40.2
46.9
53.6
60.3
16.0 23.0 26.0
30.0
33.0 37.0
40.0
44.0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
SJT 34% AVG FARE THB 31.5
30-DAY PASS (ADULT)* 28% AVG FARE THB 27.0
PURSE (STV)* 31% AVG FARE THB 27.0
30-DAY PASS (STUDENT)* 6% AVG FARE THB 21.6
ONE-DAY PASS 1% AVG FARE THB 35.8
39
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 2017/18)
THB / Trip
* Counted as Rabbit (65%)
BTS Group Investor Presentation Appendix 2: Core Network Fare Adjustment
Appendix 2: Core Network Fare Adjustment Flexibility to Increase Fares
DISTANCE-BASED FARE (BY NO. OF STATIONS)
NO. OF STATIONS
AUTHORISED FARE (APR 2013)
NEW EFFECTIVE FARE (OCT 2017)
PREVIOUS EFFECTIVE FARE (JUN 2013)
FARE PRICE (THB)
POTENTIAL FARE UPSIDE
• CAGR 5 yr (2012/13 to 2017/18) = 2.7% • CAGR 12 yr (2005/06 to 2017/18)= 2.4%
21
.4
22
.1
24
.2
24
.2
24
.1
24
.4
24
.4
24
.8
26
.4
26
.9
27
.5
27
.9
28
.3
20
05/0
6
20
06/0
7
20
07/0
8
20
08/0
9
20
09/1
0
20
10/1
1
20
11/1
2
20
12/1
3
20
13/1
4
20
14/1
5
20
15/1
6
20
16/1
7
20
17/1
8
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 2: Core Network Fare Adjustment Increased from 1 October 2017
BTS Group Investor Presentation Appendix 2: Core Network Fare Adjustment
40
15.0
22.0 25.0 28.0
31.0 34.0
37.0
42.0
20.1
26.8
33.5
40.2
46.9
53.6
60.3
16.0
23.0 26.0
30.0
33.0
37.0 40.0
44.0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
SINGLE JOURNEY TICKET (SJT): 34% OF TICKET TYPES
Number of Station
0-1 2 3 4 5 6 7 ≥ 8
Previous 15 22 25 28 31 34 37 42
1 Oct 17 16 23 26 30 33 37 40 44
RABBIT SENIOR
Number of Station
0-1 2 3 4 5 6 7 ≥ 8
Previous 7 11 13 14 16 17 19 21
1 Oct 17 8 12 13 15 17 19 20 22
• Fare of SJT, Rabbit monthly pass and Rabbit senior tickets in the Core Network will be increased from 1 October 2017 onwards • For Rabbit Purse Card (Stored Value Card: STV), the promotional prices for the effective fare were in the range of THB 15 - 43 until 31 March 2019 • Expected FY 18/19 average fare increased by 1.5-2% to THB 28.7-28.9 per trip
RABBIT MONTLY PASS ADULT: 28% OF TICKET TYPES
Present THB/Trip 1 Oct 17 @THB/Trip
15 Trips 450 30 465 31
25 Trips 700 28 725 29
40 Trips 1,040 26 1,080 27
50 Trips 1,250 25 1,300 26
RABBIT MONTLY PASS STUDENT: 6% OF TICKET TYPES
Present THB/Trip 1 Oct 17 @THB/Trip
15 Trips 345 23 360 24
25 Trips 525 21 550 22
40 Trips 760 19 800 20
50 Trips 900 18 950 19
AUTHORISED FARE (APR 2013)
NEW EFFECTIVE FARE (OCT 2017)
PREVIOUS EFFECTIVE FARE (JUN 2013)
FARE PRICE (THB)
POTENTIAL FARE UPSIDE
NO. OF STATIONS
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 3: Rolling Stocks Enlarging Our Fleet for Future Growth
41
50,000 PPHPD: SYSTEM DESIGN CAPACITY (6-CAR TRAINS & 2MIN FREQUENCY)
25,000 PPHPD: CURRENT CAPACITY (4-CAR TRAINS & 2.4MIN FREQUENCY IN SKY LINE)
BTS Group Investor Presentation Appendix 3: Rolling Stocks
98 4-CAR TRAINS (392 CARRIAGES) FOR GREEN LINE CORE NETWORK AND EXTENSION ZONE 1 & 2
72 4-CAR MONORAIL TRAINS (288 CARRIAGES) FOR PINK AND YELLOW LINES
CURRENT FLEET NO. OF TRAINS TOTAL CARRIAGES FROM
1ST BATCH 35 105 SIEMENS
2ND BATCH 12 48 CRRC
3RD BATCH 35 SIEMENS
4TH BATCH 5 20 CRRC
TOTAL 52 208
FLEET EXPANSION NO. OF TRAINS TOTAL CARRIAGES FROM
DELIVERED BY FY 18/19
22 88 SIEMENS
DELIVERED BY FY 20/21
24 96 CRRC
TOTAL 46 184
PROJECT REQUIRED TRAINS TOTAL CARRIAGES FROM
PINK 42 168 BOMBARDIER
YELLOW 30 120 BOMBARDIER
TOTAL 72 288
10,000 – 44,000 PPHPD: SERVICE CAPACITY
NOTE: PPHPD = Passengers per Hour per Direction
prepared by Investor Relations department BTS Group Holdings PCL
42
Appendix 4: Debentures & Syndicated Loan Agreement CAPEX for newly-awarded lines - secured by debt financing
BTS Group Investor Presentation Appendix 4: Debentures and Syndicated Loan for the Pink and Yellow Lines
Tenor Amount up to Coupon Rate
3-year THB 5.5bn 2.46%
5-year THB 2.2bn 2.85%
7-year THB 4.1bn 3.30%
10-year (NC5) THB 10.2bn 3.87%
Total THB 22bn 3.31% (average)
Rationale Purchase new rolling stocks and E&M for the Northern and Southern Green Line extensions
Issuance Date 10 November 2016
THB 22BN BTSC DEBENTURE:NEW GREEN EXTENSIONS THB 63.4BN SYNDICATED LOAN: PINK AND YELLOW LINES
10 October 2017: BSR JV signed the syndicated loan agreement between Bangkok Bank, Krungthai Bank and Siam Commercial Bank at a total value of up to THB 63.36bn.
Credit Facilities Total of THB 63.36bn • THB 31.68bn for Pink Line • THB 31.68bn for Yellow Line
Syndicate Banks Bangkok Bank, Krung Thai Bank, Siam Commercial Bank
Loan Term 17 years and 3 months, repayments starting from first operation date
Rationale Financing of both Pink and Yellow lines
Tenor Amount up to Coupon Rate
3-year THB 1.5bn 2.24%
5-year THB 1.5bn 2.64%
10-year THB 2.0bn 3.65%
12-year (NC5) THB 2.0bn 3.78%
Total THB 7.0bn 3.17% (average)
Rationale Repay existing debts and/or investment and/or financing the working capital of the Company
Issuance Date 26 December 2017
THB 7BN BTSG DEBENTURE
prepared by Investor Relations department BTS Group Holdings PCL
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
E&M works Civil works Repayment of gov't subsidy (civil) Farebox revenue
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
Rolling stocks Investment O&M revenue
Appendix 5: Mass Transit Economic profile O&M Contract & PPP Net Cost
ECONOMIC PROFILE (O&M CONTRACT)
ECONOMIC PROFILE (PPP NET COST WITH SUBSIDY)
KEY ASSUMPTIONS
KEY ASSUMPTIONS
1) 30-year contract from operating date
2) O&M revenue* of approx. THB 140mn/km in FY 16/17 with growth rate of 3.5% p.a.
3) EBITDA margin of 40-50% YEAR
YEAR
1) 3-4 year investment in civil and E&M works (includes rolling stocks)
2) 10-year repayment from gov’t for civil works
3) Receive farebox revenue and commercial revenue (30-year contract from operating date)
BTS Group Investor Presentation Appendix 5: Mass Transit Economic profile
*O&M revenue includes revenue from provision of operating services and interest income under concession agreement
43
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 6: Our Media Capacity reach 6.8bn from our Diversified Media Segments
44 BTS Group Investor Presentation Appendix 6: Our Media Capacity reach 6.8bn from our Diversified Media Segments
• 177 office buildings • 281 residential buildings • 1,990 digital screens
• 996 static billboards • 240 PTT posters • 35 LED screens and 250 LCD screens • 494 street furniture panels
THB 0.5bn
THB 3.0bn
• 30 BTS stations • 208 carriages • >4,000 static displays • 2,029 digital screens • 8,800 sq.m. merchandising space
THB 1.0bn
• 3,000 salespeople • 360 exclusive stores • 275 brand clients • 77 provinces nationwide
THB 0.3bn
TRANSIT
THB 0.6bn THB 1.4bn
• 14 airports in Thailand and 1 airport in Myanmar
• 343 LED screens • 2,500 trolleys • 57 jet bridges • Sale agent for 80 aircrafts
• Banner Advertising • Direct Targeted Marketing
OFFICE OUTDOOR
AVIATION ACTIVATION DIGITAL SERVICES
Media capacity of THB 6.8bn (as of December 2017)
Note: Media capacity of VGI’s standalone basis was THB 3.3bn comprising of Transit media of THB 3.0bn and Office media of THB 0.3bn.
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 7: VGI Products BTS-Related Media and Office Building & Residential Media Products
BTS Group Investor Presentation Appendix 7: VGI Products
45
TRAIN
MERCHANDISING STATION
OFFICE BUILDING INSIDE-TRAIN
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 7: VGI Products Outdoor Media and Aviation Media Products
46
BILLBOARD
STREET FURNITURE
AIRPORT LED SCREEN
AVIATION: JET BRIDGE CREATIVE PRODUCTION
BTS Group Investor Presentation Appendix 7: VGI Products
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 8: VGI & MACO Top20 Customer Profile
BTS Group Investor Presentation Appendix 8: VGI and MACO Top20 Customer Profile
47
VGI: CUSTOMER TYPE
MACO: CUSTOMER TYPE
77.4%
22.6%
Agency
Direct customer
70.0%
30.0%
VGI: TOP BRAND
MACO: TOP BRAND
Agency
Direct customer
prepared by Investor Relations department BTS Group Holdings PCL
• Hotels: Vienna House & Vienna House Easy and Eastin Grand Sathorn
• Office buildings: 33 Gracechurch and 6-14 Underwood St. UK
• Service: Vienna International Hotel Management
• Under developing: The Unicorn and Mo Chit Complex
• Roi Chak Sam • Land Bank: Sukhumvit,
Suksawad, Khukot and Bang Krachao
REMAINING KEY ASSETS AT BTSG
U CITY’S PROPERTY PORTFOLIO CONSIDERATION
• Hotels: U Sathorn, U Chiang Mai and U Kanchanaburi
• Office Building: TST Tower • Services: Absolute Hotel
Services, Thana City and Tanayong Property Management
• International School • Land Bank:
Khao Yai and Ratburana • BTS-Sansiri JVs
ASSETS TRANSFERRED FROM UE
NET GAIN OF THB 1.9BN FROM EBT
Preferred Shares from: PP: 63,882mn shares (@THB 0.034/share) with U-W3 31,941mn units
48
Appendix 9: Overview of Property Restructuring EBT of UE to U City
Loan Novation: THB 5.0bn Loan Repayment: THB 5.1bn
THB 2.2bn
Fair value of U City’s preferred shares and warrants and loans to and interest receivable from U City
THB 12.2bn
Book value Net assets of the Unicorn Group (THB 9.1bn)
Deducted deferred gain on the entire business transfer of subsidiary and Transaction costs
(THB 1.2bn)
Net gain on the entire business transfer of subsidiary
THB 1.9bn
THB 10.1bn
THB 12.2bn Total Settlement Value
BTS Group Investor Presentation Appendix 9: Overview of the Entire Business Transfer Transaction
• Thana City Golf Course and Sports Club • Par 1 (Housing Estate) • Land (e.g. Bayswater JV)
PRE EBT
Total Assets Value: THB 12.2bn
prepared by Investor Relations department BTS Group Holdings PCL
49 BTS Group Investor Presentation Appendix 10: Residential Segment Overview – BTS-Sansiri JV
Appendix 10: Residential Segment Overview - BTS-Sansiri JV
PARTNERSHIP ROADMAP
2015 (3 projects)
2016 (5 projects)
50:50 JV to develop a targeted THB 100bn worth of condominiums along current and future mass transit lines through the JV with Sansiri with an expected NPAT margin 12% and equity IRR 17%
2018
At least 3 JV projects to be launched
• The LINE Jatulak – Mo Chit Project value: THB 5,829mn Est. Transfer: Sep 2017
• The LINE Sukhumvit 71 Project value: THB 1,967mn Est. Transfer: Sep 2016
• The LINE Ratchathewi Project value: THB 3,015mn Est. Transfer: May 2018
• The LINE Asoke-Ratchada Project value: THB 3,022mn Est. Transfer: Oct 2018
• The BASE Garden Rama 9 Project value: THB 2,344mn Est. Transfer: Oct 2018
• The LINE Pradipat Project value: THB 5,892mn Est. Transfer: Jan 2020
2017 (3 projects)
• The BASE Phetkasem 29 Project value: THB 2,010mn Est. Transfer: Jan 2020
• The MONUMENT Thonglor Project value: THB 6,244mn Est. Transfer: Jul 2019
• The LINE Sathorn Project value: THB 3,919mn Est. Transfer: Apr 2021
• The LINE Sukhumvit 101 Project value: THB 4,652mn Est. Transfer: Nov 2019
• KHUN BY YOO Thonglor 12 Project value: THB 4,069mn Est. Transfer: Nov 2019
• The LINE Wongsawang Project value: THB 4,871mn Est. Transfer: Mar 2018
The LINE Wongsawang
The LINE
Sukhumvit 101 KHUM BY YOO
The LINE
Jatujak-Mo Chit The LINE Sukhumvit 71
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 11: BTS-W3 Term Sheet
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 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
PROCEEDS THB 47,336MN
WARRANTS TERMS AND CONDITIONS
BTS Group Investor Presentation Appendix 11: BTS-W3 Term Sheet
50
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 12: BTS-W4 Term Sheet
51
TICKER BTS-W4
TERMS 1 YEAR
WARRANTS PRICE NIL
NO. OF WARRANTS SCENARIO 1: UP TO 1,755,034,187 UNITS*
SCENARIO 2: UP TO 1,316,158,099 UNITS**
No. OF SHARE SCENARIO 1: UP TO 1,755,034,187 UNITS*
SCENARIO 2: UP TO 1,316,158,099 UNITS**
EXERCISE RATIO 1 BTS-W4 TO 1 NEW COMMON SHARE OF BTS
EXERCISE PRICE THB 10.50 PER SHARE
EXPECTED MAXIMUM PROCEEDS SCENARIO 1: THB 18,427,858,963.50*
SCENARIO 2: THB 13,819,660,039.50**
EXERCISE PERIOD QUARTERLY
SET LISTING BOTH BTS-W4 AND THE NEW SHARES TO BE LISTED
WARRANTS TERMS AND CONDITIONS
*Assuming all BTS-W3, BTS-WB and BTS-WC are exercised **If only BTS-WB are exercised
BTS Group Investor Presentation Appendix 12: BTS-W4 Term Sheet
prepared by Investor Relations department BTS Group Holdings PCL
OPERATING REVENUE COMPARISON (YoY)
INCOME STATEMENT (THB mn) FY 2017/18 FY 2016/17 % YoY 4Q 2017/18 4Q 2016/17 % YoY 3Q 2017/18 % QoQ
Operating Revenues1 14,102 8,606 64% 3,574 3,395 5% 4,875 (27)%
Gross operating profits 5,778 4,463 29% 1,652 1,393 19% 1,552 6%
Operating EBITDA2 4,089 2,928 40% 1,154 988 17% 1,144 1%
Recurring net profit – after MI 2,515 1,417 78% 810 288 181% 938 (14)%
Accounting EBITDA 7,571 4,114 84% 3,367 1,167 188% 1,696 99%
Net income (loss)3 4,416 2,003 120% 2,470 439 463% 889 178%
Gross operating profit margin (%) 41.0% 51.9% 46.2% 41.0% 31.8%
Accounting EBITDA margin (%) 42.3% 41.2% 56.0% 32.7% 31.0%
Recurring net profit margin (%) 16.0% 15.4% 19.6% 8.4% 17.1%
Operating EBITDA margin (%) 29.0% 34.0% 32.3% 29.1% 23.5%
P&L SNAPSHOT
65%
Mass Transit 28%
Media
4%
Property
3%
Services
FY 2017/18 OPERATING REVENUE BREAKDOWN
1 operating revenue of 4 BUs & share of net profit from BTSGIF 2 excluding non-mass transit interest income 3 to equity holders of the parent
52
Appendix 13: 4Q and FY 2017/18 Overview
8,606
14,102 4,875 893 (294)
FY16/17 Mass Transit Media Property Services FY17/18
4%
(40)%
30% 115%
(THB mn)
22
BTS Group Investor Presentation Appendix 13: 4Q and FY 17/18 Performances
prepared by Investor Relations department BTS Group Holdings PCL
15,095 (9,929)*
(1)
4,270 9,458** 23
Beginning cash(31/03/17)
CFO CFI CFF Others Ending cash(31/03/18)
* After corporate income tax of THB 624mn, interest expenses of THB 707mn and investment in E&M works and train procurement for the Southern and Northern Green Line extensions of THB 6bn and an advance payment for civil works and E&M works of the Pink and Yellow lines of THB 8.2bn ** Excluding liquid investments of THB 20.6bn
CFO • Profit before tax of THB 5,576mn, deducted
by • Non-cash reconciling items of THB 2,235mn • Changes in net working capital of THB 11.9bn
(this includes THB 6bn Green Line extensions E&M works and train procurement as well as an advance payment for civil works and E&M works of the Pink and Yellow lines of THB 8.2bn)
CFI • Cash paid for purchases of investments in associates of
THB 3,223mn • Cash paid for acquisitions of current and other long-
term investments of THB 1,242mn • Cash paid for purchases of property, plant and
equipment of THB 1,063mn • Cash received from loan to related parties of THB
5,263mn • Dividend Income of THB 1,836mn and Interest income
of THB 1,272mn
CFF • Cash received from long-term debentures and BE of THB
7bn • Cash received from STEC and RATCH (re. pink and yellow
line projects) and proceeds from VGI newly issued ordinary shares (through PP) of THB 2,250mn
• Proceeds from VGI newly issued ordinary shares of THB 2,040mn
• Increase in bills of exchange payables of THB 1,756mn • Cash paid from investment in subsidiaries (VGI & MACO)
of THB 4,074mn
Appendix 13: FY 2017/18 Cash Flow Snapshot
(THB mn)
53 BTS Group Investor Presentation Appendix 13: 4Q and FY 17/18 Performances
prepared by Investor Relations department BTS Group Holdings PCL
10%
Share in BTSGIF
HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS
Services revenue from the provision of E&M works and the train procurement service for the Southern and Northern Green Line extensions of THB 5.8bn was recorded
O&M revenue rose by 12% YoY to THB 1,865mn mainly from the existing extensions and one new additional station (Samrong: E15)
Farebox revenue of THB 6,821mn (up 2.8% YoY) with 1.3% YoY ridership growth and 1.4% YoY average fare increase
Share of net profit in BTSGIF of THB 949mn (increased 0.4% YoY) Costs rose by 194% YoY to THB 6,274mn largely due to cost of services
related to the provision of E&M works and the train procurement service for Green Line extensions
Operating EBITDA margin was 31.5% (50.4% in FY 2016/17)
OPERATING PERFORMANCE
MASS TRANSIT (THB mn)
FY 17/18 FY 16/17 %YoY 4Q 17/18 4Q 16/17 %YoY 3Q 17/18 %QoQ
Revenue 9,112 4,237 115% 2,159 2,197 (2)% 3,642 (41)%
Costs of revenue 6,274 2,131 194% 1,389 1,466 (5)% 2,808 (51)%
Gross profit 2,837 2,105 35% 770 731 5% 834 (8)%
Operating EBITDA 2,872 2,136 35% 779 740 5% 843 (8)%
Gross margin (%) 31.1% 49.7% 35.7% 33.3% 22.9%
Operating EBITDA margin (%) 31.5% 50.4% 36.1% 33.7% 23.1%
OPERATING REVENUE BREAKDOWN
20%
O&M
Services revenue from provision of E&M works & train procurement
64%
FY 2017/18 Int income from
train procurement & E&M
6%
54
Appendix 13: 4Q and FY 2017/18 Mass Transit
409 417 411 411 422 474 472 452 467 33 33 32 32 90 78 82 109 234 197 221 199 284 241 218 247 233 252
1,444 1,224
519
2,848
1,205
4Q 15/16 1Q 16/17 2Q 16/17 3Q 16/17 4Q 16/17 1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18
Services revenue from provision of E&Mworks & train procurement
Share of NP in BTSGIF
Int income from train procurement
O&M
BTS Group Investor Presentation Appendix 13: 4Q and FY 17/18 Performances
prepared by Investor Relations department BTS Group Holdings PCL
HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS
Overall Media revenue up 30% YoY to THB 3,902mn mainly from healthy performance in OOH Media
OOH Media revenue* increased 35% YoY to THB 3,559mn chiefly attributable to higher prices, synergies from the Digital Services segment, the launch of a new product (LED billboards) as well as the full year consolidation of MACO
Costs rose by 18% YoY to THB 1,234mn from higher sales and the full year consolidation of MACO
Operating EBITDA margin improved YoY to 50.6% (46.7% in FY 2016/17)
58%
BTS – Related Media
25%
Outdoor Media
MEDIA (THB mn)
FY 17/18 FY 16/17 %YoY 4Q 17/18 4Q 16/17 %YoY 3Q 17/18 %QoQ
Operating revenue 3,902 3,010 30% 1,107 845 31% 976 13%
Costs of revenue 1,234 1,043 18% 321 289 11% 310 4%
Gross profit 2,668 1,967 36% 786 556 41% 667 18%
Operating EBITDA 1,976 1,407 41% 529 392 35% 507 4%
Gross margin (%) 68.4% 65.3% 71.0% 65.8% 68.3%
Operating EBITDA margin (%)
50.6% 46.7% 47.8% 46.4% 52.0%
FY 2017/18
OPERATING PERFORMANCE
OPERATING REVENUE BREAKDOWN
55
8%
Office Buildings and Others
9%
Digital
*OOH Media includes Transit, Outdoor and Office Building and Other Media
570 542
790 754 741 753 891 894
1,020 79
104 96
79 82
87
4Q 15/16 1Q 16/17 2Q 16/17 3Q 16/17 4Q 16/17 1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18
Digital Services Media OOH
Appendix 13: 4Q and FY 2017/18 Media
BTS Group Investor Presentation Appendix 13: 4Q and FY 17/18 Performances
prepared by Investor Relations department BTS Group Holdings PCL
Residential
4%
HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS
Operating revenue was THB 639mn, increasing 4% YoY Residential property revenue reduced by THB 10mn to THB 24mn from
lower housing unit sales at Thana City Commercial property revenue rose by 5% YoY to THB 616mn mainly from
the improving overall hotel performance and Thana City Golf & Sports Club
Operating costs increased by 29mn or 8% YoY
OPERATING PERFORMANCE
PROPERTY (THB mn)
FY 17/18 FY 16/17 %YoY 4Q 17/18 4Q 16/17 %YoY 3Q 17/18 %QoQ
Operating Revenue 639 617 4% 160 186 (14.2)% 174 (8)%
Costs of revenue 413 385 8% 105 113 (7)% 105 0%
Gross profit 226 233 (3)% 54 73 (26)% 68 (20)%
Operating EBITDA (4) 3 N.A. (5.3) 17 N.A. 12 N.A.
Gross margin (%) 35.3% 37.7% 34.1% 39.4% 39.4%
Operating EBITDA margin (%)
(0.6)% 0.5% (3.3)% 9.2% 6.7%
OPERATING REVENUE BREAKDOWN
FY 2017/18
NOTE: Property operating performances exclude share of profit/(loss) from investment in BTS-SIRI JVs, U City and Bayswater.
56
171
142 142 147
186
146 159
174 160
4Q 15/16 1Q 16/17 2Q 16/17 3Q 16/17 4Q 16/17 1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18
96%
Commercial & Others
Appendix 13: 4Q and FY 2017/18 Property
BTS Group Investor Presentation Appendix 13: 4Q and FY 17/18 Performances