BTS Group Holdings PCLbts.listedcompany.com/misc/presentation/20180816-bts-am-1q201819-04.pdfAug 16, 2018 · Investment involves risk. Prospective should understand the characteristics

prepared by Investor Relations department BTS Group Holdings PCL

16 AUGUST 2018

BTS GROUP HOLDINGS PCL

1Q 2018/19 EARNINGS PRESENTATION

Disclaimer

Investment involves risk. Prospective should understand the characteristics of Securities and study information about BTS Group Holdings Public Company Limited (the “Company”) before making a decision to invest in Securities. This presentation is for information purposes only and is intended only for the initial direct attendee of the presentation. It may not be reproduced or redistributed to any other person. It shall not and does not constitute either an offer to purchase or buy or a solicitation to purchase or buy or an offer to sell or exchange or a solicitation to sell or exchange any securities of BTS Group Holdings PCL (the "Company") or any of its subsidiaries in the United States of America or in any other jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its existence, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. This presentation is not to be relied upon in any manner as legal, tax or any other advice and shall not be used in substitution for the exercise of independent judgment and each person made aware of the information set-forth hereof shall be responsible for conducting its own investigation and analysis of the information contained herein. Except where otherwise indicated, the information provided in this presentation is based on matters as they exist as of the date stated or, if no date is stated, as of the date of preparation and not as of any future date, and the information and opinions contained herein are subject to change without notice. None of the Company nor any of its subsidiaries accepts any obligation to update or otherwise revise any such information to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof. None of the Company or any of its subsidiaries or any of their respective directors, officers, employees or agents shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation and any and all such liability is expressly disclaimed. The information contained herein must be kept strictly confidential and may not be reproduced or redistributed in any format without the express written approval of the Company. Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to the Company’s corporate plans, strategies and beliefs and other statement that are not historical facts. These statement can be identified by the use of forward-looking terminology such as “may”, “will”, “expect” , “intend”, “estimate”, “continue”, “plan” or other similar words. The statements are based on the assumptions and beliefs of the Company’s management in light of the information currently available to the Company. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this Presentation is, or should be relied on as promise or representation of the Company as to the future.

BTS Group Earnings Presentation 2

Agenda

Section

1 BTSG 1Q 2018/19 FINANCIAL PERFORMANCE

Section

2 Section

3

BUSINESS UPDATES

BTSGIF 1Q 2018/19 FINANCIAL PERFORMANCE (separate presentation)

APPENDICES

BTS Group Earnings Presentation 3


1Q 2018/19 Highlights

• Operating EBITDA was THB 1,128mn, rose by THB 212mn or 23.1% YoY • Reported net profit (before MI) was THB 495mn, increasing by 13.1% YoY

mainly from higher recurring gross profit, yet partially offset with higher SG&A expenses and finance cost

• Reported net profit (after MI) was THB 387mn, dropped by 4.4% YoY • Recurring net profit (after MI) of THB 472mn, an increase of 20.4% YoY

• Balance sheet strength: THB 30.8bn cash & liquid investments* & cash to be

received from clearing house - share subscription of subsidiary • Low leverage: Adjusted net D/E at 0.39x *Cash and liquid investments include cash bal. of THB 4.7bn, current investments of THB 5.5bn, L/T investments of THB 15.4bn

Investment phase; including; • CFO: Investment in E&M works and train procurement for Southern and

Northern Green line extensions of THB 1.5bn and an advance payment for civil works and E&M works of the Pink and Yellow lines of THB 0.2bn

• CFI: Cash paid to exercise VGI-W1 of THB 5.4bn • CFF: Net cash received from bank loans (via BE and PN) of THB 2.2bn

4

PROFITABILITY

BALANCE SHEET

CASH FLOW

BTS Group Earnings Presentation Section 1: BTSG 1Q 2018/19 Financial Performance

18 Jun: BTSG bought TOR of a High Speed Rail project

29 Jun • Notice-to-Proceed (NTP) for Pink & Yellow lines was issued

for construction kick-off • VGI received proceeds from the exercise of VGI-W1 of THB

7.1bn1. Of this, BTSG and BTSC exercised its rights totaling THB 5.4bn.

5 Jul: VGI AGM approved the investment in Kerry Express Thailand, total purchase price of THB 5.9bn

WHAT’S NEW IN 1Q 2018/19

31 Jul: BTSC and KT entered into a 30-year O&M Services Agreement of the Gold Line Project Phase 1 (Krung Thonburi BTS Station – Khlong San District Office)

5 Aug: The first in a series of 22x4-carriage trains (1 train) from Siemens was successfully delivered

1 Subsequently, on 1 August 2018 (VGI-W1 final exercise date), VGI received additional cash of THB 1.4bn, making total proceeds from the exercises of VGI-W1 of THB 8.6bn, or 72%

of maximum proceeds


Facts and Figures

5 BTS Group Earnings Presentation Section 1: BTSG 1Q 2018/19 Financial Performance

KEY HIGHLIGHTS

OPERATING REVENUE

2% YoY

OPERATING EBITDA

23% YoY

RECURRING NET PROFIT (AFTER MI)

20% YoY

THB 3,049mn Operating Revenue Chiefly from (i) Mass Transit: THB 1,813mn (-9% YoY) (ii) Media: THB 1,077mn (+27% YoY)

THB 1,128mn Operating EBITDA Increased by THB 212mn or 23% YoY

37% Operating EBITDA Margin

THB 472mn Recurring Net Profit (after MI) rose 20% YoY, largely as a result of (i) Higher recurring gross profit (ii) An increase in share of net profit from associates/JVs

3,110 2,543

4,875

3,574 3,049

1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19

917 875

1,144 1,154 1,128

1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19

392 375

938 810

472

1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19

(THB mn)


OPERATING REVENUE COMPARISON (YoY)

INCOME STATEMENT (THB mn) 1Q 2018/19 1Q 2017/18 % YoY 4Q 2017/18 % QoQ

Operating Revenues1 3,049 3,110 (2)% 3,574 (15)%

Gross operating profits 1,470 1,278 15% 1,652 (11)%

Operating EBITDA2 1,128 917 23% 1,154 (2)%

Recurring net profit – after MI 472 392 20% 810 (42)%

Accounting EBITDA 1,114 1,087 (2)% 3,367 (64)%

Net income (loss)3 387 405 (4)% 2,470 (84)%

Gross operating profit margin (%) 48.2% 41.1% 46.2%

Accounting EBITDA margin (%) 33.5% 32.7% 56.0%

Recurring net profit margin (%) 15.2% 12.0% 19.6%

Operating EBITDA margin (%) 37.0% 29.5% 32.3%

P&L SNAPSHOT

59%

Mass Transit

35%

Media

3%

Property

3%

Services

1Q 2018/19 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


1Q 2018/19 Overview

3,110 3,049 (180)

228

(43)

Q1 FY17/18 Mass Transit Media Property Services Q1 FY18/19

(45)% (35)% 27% (9%) (THB mn)

(66)


CFO • Profit before tax of THB 606mn, deducted

by • Non-cash reconciling items of THB 187mn • Changes in net working capital of THB 2bn

(this includes THB 1.5bn Green Line extensions E&M works and train procurement an advance payment for civil works and E&M works of the Pink and Yellow lines of THB 0.2bn)

9,458

(2,110)*

(5,703)

2,896 4,574** 33

Beginning cash(31/3/18)

CFO CFI CFF Others Ending cash(30/6/18)

* After corporate income tax of THB 56mn, interest expenses of THB 448mn and investment in E&M works and train procurement for the Southern and Northern Green Line extensions of THB 1.5bn and an advance payment for civil works and E&M works of the Pink and Yellow lines of THB 0.2bn ** Excluding liquid investments and cash to be received from clearing house - share subscription of subsidiary of THB 26.1bn

CFI • Cash paid to exercise VGI-W1 of THB 5.4bn • Cash paid for acquisitions of current and other

long-term investments of THB 748mn • Cash paid for purchases of property, plant and

equipment of THB 138mn • Dividend Income of THB 437mn and Interest

income of THB 209mn

CFF • Net cash received from bank loans of THB 2.2bn • Net cash received mainly from sale of VGI of THB

665mn

1Q 2018/19 Cash Flow Snapshot

(THB mn)



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 0.9bn was recorded

O&M revenue rose by 4% YoY to THB 452mn mainly from the existing extensions and one new additional station (Samrong: E15)

Despite the impact of free-trip allowance to passengers from train services disruption, Farebox revenue up 1% YoY to THB 1,640mn on the back of 2.7% YoY average fare increase

Share of net profit in BTSGIF of THB 227mn (increased 4% YoY) Costs declined by THB 218mn YoY to THB 1.1bn largely from lower

recognition in cost of services related to the provision of E&M works and the train procurement service for Green Line extensions

Operating EBITDA margin was 38.7% (33.3% in 1Q 2017/18)

OPERATING PERFORMANCE

MASS TRANSIT (THB mn)

1Q 2018/19

1Q 2017/18

%YoY 4Q

2017/18 %QoQ

Revenue 1,813 1,993 (9)% 2,159 (16)%

Costs of revenue 1,120 1,338 (16)% 1,389 (19)%

Gross profit 694 655 6% 770 (10)%

Operating EBITDA 702 664 6% 779 (10)%

Gross margin (%) 38.3% 32.9% 35.7%

Operating EBITDA margin (%) 38.7% 33.3% 36.1%

OPERATING REVENUE BREAKDOWN

25%

O&M Services revenue from provision of

E&M works & train procurement

51%

1Q 2018/19

Int income from train procurement & E&M

11%

8

Mass Transit


417 411 411 422 473 472 452 468 452 33 32 32 90 78 82 109 234 193 221 199 284 241 218 247 233

252 227

1,444 1,224 519

2,848

1,205 926

14

1Q16/17

2Q16/17

3Q16/17

4Q16/17

1Q17/18

2Q17/18

3Q17/18

4Q17/18

1Q18/19

Farebox BRT

Services revenue from provision ofE&M works & train procurementShare of NP in BTSGIF

Int income from trainprocurement & E&MO&M

12%

Share in BTSGIF

1%

Farebox BRT

IR Quarterly Presentation 4Q 1213_Draft1.xlsx


HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS

Overall Media revenue surged 27% YoY to THB 1,077mn mainly from improved performance in OOH Media

OOH Media revenue* rose by 37% YoY to THB 996mn chiefly attributable to from synergies of O2O Solutions services, a higher utilisation rate, digital billboards products as well as the full quarter consolidation of Co-Mass in the Outdoor media segment

Costs increased by 5% YoY to THB 309mn primarily from costs related to the launch of 35 digital billboards and full year consolidation of Co-Mass by MACO

Operating EBITDA margin improved YoY to 54.5% (49.6% in 1Q 2017/18)

58%

BTS – Related Media

26%

Outdoor Media

MEDIA (THB mn)

1Q 2018/19

1Q 2017/18

%YoY 4Q

2017/18 %QoQ

Operating revenue 1,077 849 27% 1,107 (3)%

Costs of revenue 309 294 5% 321 (4)%

Gross profit 768 555 38% 786 (2)%

Operating EBITDA 587 421 39% 529 11%

Gross margin (%) 71.3% 65.4% 71.0%

Operating EBITDA margin (%)

54.5% 49.6% 47.8%

1Q 2018/19



9

Media

9%

Office Buildings

and Others

7%

Digital

*OOH Media includes Transit, Outdoor and Office Building and Other Media


542 790 755 741 753

891 894 1,020 996

79

104 96 79 82

87 81

1Q 16/17 2Q 16/17 3Q 16/17 4Q 16/17 1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19

Digital Services Media OOH



Residential

11%

HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS Operating revenue was THB 80mn, decreasing 45% YoY, which was

primarily attributable to the deconsolidation of the majority of BTS property business as a result of the EBT of UE to U City in prior quarter

Commercial Property revenue was THB 71mn or 89% of Property revenue, which now mainly comprises of revenue from Thana City Golf & Sports Club. The decrease of THB 70mn or 50% YoY was chiefly due to the deconsolidation of the 3 former BTS’ hotels following the EBT of UE to U City

Narrower share of net loss from investment in U City, our associate, of THB 8mn (THB 59mn loss in 1Q 2017/18) mainly from the release of deferred gain according to transfer progress of Sansiri-JVs.

Operating costs dropped in tandem with the decline in operating revenue, reducing by 28% YoY or THB 27mn to THB 68mn.


PROPERTY (THB mn)

1Q 2018/19

1Q 2017/18

%YoY 4Q

2017/18 %QoQ

Operating Revenue 80 146 (45)% 160 (50)%

Costs of revenue 68 95 (28)% 105 (36)%

Gross profit 13 52 (76)% 54 (77)%

Operating EBITDA 19 (6) N.A. (5) N.A.

Gross margin (%) 15.6% 35.3% 34.1%

Operating EBITDA margin (%)

23.0% N.A. N.A.


1Q 2018/19

NOTE: Property operating performances exclude share of profit/(loss) from investment in BTS-SIRI JVs, U City and Bayswater.

10

Property

89%

Commercial & Others


142 142 147

186

146 159

174 160

80

1Q 16/17 2Q 16/17 3Q 16/17 4Q 16/17 1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19



11

BTS Group Update Share of Income / (Loss) from Investments in JV & Associates

(THB mn)


(THB mn) 1Q 2018/19 1Q 2017/18*

Share of income/ (loss) from investments

in joint ventures

(90)

(183)

Bayswater (64) (52)

Rabbit Line Pay (24) (20)

Chefman (13) -

SPV AEON-Rabbit 9 2

Media’s JV 2 -

Sansiri JV - (113)

Share of income/ (loss) from investments

in associates

202

169

BTSGIF 227 218

Media’s associates (17) 9

U City (8)** (59)

AHS - 1

Total 111 (13)

1Q 2018/19 SHARE OF NET PROFIT/ (LOSS)

BREAKDOWN BY BU

227

(30) (73) (13)

111

Mas

sTr

ansi

t

Med

ia

Pro

per

ty

Serv

ices

Tota

l

(THB mn)

*includes performances from discontinued operation **After Purchase Price Allocation (PPA) adjustment and deferred gain


46,364 48,512

36,971 37,038

22,923 24,918

31 Mar 18 30 Jun 18

Total current liabilities Total non-current liabilities Total shareholders' equity

106,258 110,467

84,980 86,793

21,278 23,674

31 Mar 18 30 Jun 18

Total current assets Total non-current assets

110,467 106,258

Cash

31 Mar 18: THB 9.46bn

30 Jun 18: THB 4.57bn

Current Investments

31 Mar 18: THB 5.67bn

30 Jun 18: THB 5.46bn

Long-Term Investments

31 Mar 18: THB 15.95bn

30 Jun 18: THB 16.58bn

Gross Debt

31 Mar 18: THB 47.17bn

30 Jun 18: THB 49.48bn

Adjusted Net Debt*

31 Mar 18: THB 17.13bn

30 Jun 18: THB 18.69bn

*****

Issued Ordinary Shares

31 Mar 18: 11,940.4mn

30 Jun 18: 11,845.2mn

80%

20% 21%

79%

23%

44%

33%

44%

21%

35%

1Q 2018/19: 1.02x 1Q 2017/18: 0.92x

Gross Debt to Equity

1Q 2018/19: 0.39x 1Q 2017/18: 0.10x

Adjusted Net Debt* to Equity

1Q 2018/19: 4.35x 1Q 2017/18: 1.43x

Adjusted Net Debt* to Recurring

Operating EBITDA

1Q 2018/19: 3.58x 1Q 2017/18: 3.12x

Interest Coverage

1Q 2018/19: 0.95x 1Q 2017/18: 1.39x

Current Ratio

ASSET BREAKDOWN (THB MN)

LIABILITIES AND EQUITY BREAKDOWN (THB MN)

KEY RATIOS

12

Financial Position

*Adjusted Net Debt = Interest Bearing Debt – Cash and Cash Equivalent and Liquid Investment - Cash to be received from clearing house - share subscription of subsidiary


Agenda

Section


Section

2 Section

3

BUSINESS UPDATES


APPENDICES

13 BTS Group Earnings Presentation


1Q 2018/19

Ridership = 57.1mn trips, -1.5% YoY, -5.0% QoQ

Average fare = THB 29.0* per trip, +3.9% YoY, +0.8% QoQ

Average weekday ridership = 719,756 trip, -1.2% YoY

Historical average fare & % growth (YoY) Historical ridership & % growth (YoY)

14

Mass Transit Update Core Network Ridership

BTS Group Earnings Presentation Section 2: Business Update

Explanation Ridership: YoY and QoQ decreased mainly from train services

disruption during 25-27 Jun 2018. Additionally, a QoQ decrease from lower number of weekdays from several holidays in this quarter (seasonal impact).

Average fare: YoY rose from fare increase since Oct 2017 and QoQ rose from adjustment of promotional price for stored-valued card since Apr 2018

58.0

62.2

60.8 60.2

57.1

2.8%

0.8%

1.7% 0.2%

-1.5% -3.4%

7.1%

-2.2% -1.0% -5.0%

-50.0%

0.0 %

53.0

58.0

63.0

1Q 2017/18 2Q 2017/18 3Q 2017/18 4Q 2017/18 1Q 2018/19

Ridership (mn trips) Passenger Growth (YoY)Passenger Growth (QoQ)

27.9 27.8 28.7 28.8 29.0*

0.3%

-0.6%

3.2% 0.4% 0.8% -0.6%

-0.2%

3.2% 3.3% 3.9%

1Q 17/18 2Q 17/18 3Q 17/18 4Q 17/18 1Q 18/19

Average Fare (THB/trip) Average Fare Growth (% QoQ)Average Fare Growth (% YoY)

* Excluding the impact of free-trip allowance to passengers from train services disruption


15 BTS Group Earnings Presentation Section 2: Business Update

Mass Transit Update Progress of BTS Secured Lines

Source: MRTA, the Company

SOUTHERN GREEN LINE EXT. (Bearing - Samutprakarn) 12.6km/ 9 stations

NORTHERN GREEN LINE EXT. (Mochit - Khukot) 18.2km/ 16 stations

PINK LINE (Khae Rai – Min Buri) 34.5km/ 30 stations

YELLOW LINE (Ladprao - Samrong) 30.4km/ 23 stations

FY 17/18 FY 18/19 FY 19/20 FY 20/21

1 station opened:

Samrong (Apr 2017)

Targeted full

Operation (Dec 2018)

Targeted 1st station: Ladprao

(Mid 2019)

Targeted full Operation (Jul 2020)

Contract Signed

FY 21/22

Targeted operation (Oct 2021)

Targeted operation (Oct 2021)

Contract Signed

Construction Period

Construction Period

Construction Period

NTP issued 29 Jun 18

NTP issued 29 Jun 18

GOLD LINE PHASE 1 (Krung Thon Buri – Klong San) 1.7km/ 3 stations

Targeted Full operation

(Sep 2020)

O&M contract Signed (31 Jul 18)

Construction Period


16

Mass Transit Update First Batch of new Trains from Siemens Delivered in Aug 2018


In order to accommodate the increase in passengers in existing Green Line network as well as in the Southern Green Line extension which its full operation is targeted to begin commencement in December 2018 • First batch (1x4-carriage train) of total 22x4 car trains from Siemens arrived on 5 August 2018 • Minimum of 7x4-carriage trains from Siemens are targeted to arrive and ready for operation services by early December 2018


17

Mass Transit Update Start of Pink and Yellow Lines Construction since 29 Jun 2018


• Following the successfully signed contract for the Pink and Yellow Line in June 2017, the Notice-to-Proceed (NTP) for the Pink and Yellow Line was issued on 29 June 2018, marking the start of a 39-month construction period to completion.

• The operation of these two lines are expected to begin in October 2021.

Sources: https://www.facebook.com/CRSTECONPINKLINE/

https://www.facebook.com/CRSTECONPINKLINE/




ROUTE KRUNG THON BURI – KLONG SAN (PHASE I): 1.7KM 3 STATIONS

NO. OF STATIONS

3 OVERGROUND STATIONS (G1 TO G3) • G1: KRUNG THON BURI • G2: CHAROEN NAKORN • G3: KLONG SAN

TYPE MONORAIL FEEDER LINE

TRAINS THREE 2-CAR AUTOMATIC PEOPLE MOVER (APM) TRAINS

SYSTEM CAPACITY

4,000-12,000 PPHPD (5-6 MIN HEADWAY)

E&M AND O&M SERVICES PROVIDED BY BTSC

18

Source: http://www.raillynews.com


31 JUL 2018 O&M Services Agreement signed

1 SEP 2020 Targeted Commercial Operation Date (30 years operation*)

1 AUG 2018 NTP issued for E&M kick-off

9 MAR 2018 Civil work construction began

27 FEB 2018 Sale and installation of E&M works agreement signed

15 DEC 2017 KT awarded civil contract to ITD

TIMELINE

KRUNG THONBURI BTS STATION – KHLONG SAN 1.7KM

GOLD PHASE 1

*Such term can be terminated earlier if the operation and maintenance services agreement of the Bangkok Mass Transit System, in which BTSC has been engaged by Krungthep Thanakom until 2 May 2042, has not been extended.

SALE AND INSTALLATION OF E&M WORKS AGREEMENT • E&M VALUE (INCL.VAT) OF THB 765.59MN O&M SERVICES AGREEMENT • 30 YEARS FROM 1ST COMMERCIAL OPERATION DATE • O&M SERVICES INCLUDE THE OPERATION OF TRAINS,

MANAGEMENT, MAINTENANCE OF THE MASS TRANSIT SYSTEM, FARE COLLECTION AND THE PROCUREMENT OF ROLLING STOCK

• O&M VALUE (INCL.VAT) OF THB 13,520MN

Mass Transit Update Gold Line Phase 1 – Project at a Glance


19

Mass Transit Update High Speed Rail – Project at a Glance

1 Existing ARL Suvarnabhumi-Phayathai

ARL Extension Phayathai-Don Mueang

3 High Speed Rail Bangkok-U-Tapao

4 Makkasan Area Land Development

5

PROJECT

Transit Oriented Development (TOD)

2

Makkasan Area Land

Development Don Mueang

Bang Sue

Phayathai

Makkasan

Suvarnabhumi

Chachoeng- sao

Chon Buri

Si Racha

Pattaya

U-Tapao

2

1

3

4

Transit Oriented

Development

5 High Speed Rail Station Existing Maintenance Depot

New Maintenance Depot

Source: High Speed Rail’s Market Sounding

Route Don Mueang – Suvarnabhumi – U-Tapao

Distance 220km

No. of Stations 15 Stations

Maximum Design Speed • Suvarnabhumi - U-Tapao: 280 km/hr • Don Mueang -

Suvarnabhumi: same as current system

Maximum Operation Speed

• Suvarnabhumi - U-Tapao: 250 km/hr • Don Mueang -

Suvarnabhumi:160 km/hr

Contract Type PPP Net Cost with subsidy

Expected Project Cost THB 221bn

Expected Operation Year 2024

Contract Length 50 Years

Design & Construction Operation

5 years 45 years



20

Mass Transit Update HSR’s Bid Winner is Targeted to be Announced by End of 2018


18 Jun-9 Jul 2018 12 Nov 2018 13 Nov 2018 End 2018

Terms of Reference (TOR) selling period

Bid Submission Announce the bid winner

Open bidding documents

companies bought High Speed Rail TOR 31

7 companies

4 companies

1 company

14 companies

2 companies

2 companies

1 company

List of 14 Thai companies

1. BTS Group Holdings PCL. 2. Sino-Thai Engineering and

Construction PCL. 3. Ratchaburi Electricity Generating

Holding PCL. 4. Charoen Pokphand Holding Co., Ltd. 5. Italian-Thai Development PCL. 6. Unique Engineering and

Construction PCL. 7. Energy Complex Co., Ltd. 8. Bangkok Expressway and Metro PCL. 9. Ch. Karnchang PCL. 10. TPI Polene PCL. 11. Terd Dumri Co., Ltd. 12. Powerline Engineering PCL. 13. Central Pattana PCL. 14. LMT Stone Co., Ltd.



Media Update An acquisition of Kerry Express (Thailand)

SERVICE CHANNEL

B2B delivering parcels from company to various places such as financial institutions, law firm, retail shops and etc.

B2C delivering parcels from e-market place to the individual

shoppers

C2C delivering letters and parcels from online retailers to individual consumers

NETWORK AND CHANNEL

• Deliver more than 800,000 parcels per day

• 6,000 delivery vehicles

• 700 distribution centers

• >2,500 services points at alliance shops such as

POST VGI SHAREHOLDING STRUCTURE

TRANSACTION DETAILS

% of investment 23% of total shares

Total investment THB 5,901mn

Source of funds Cash from proceed from PP-1 and VGI-W1

KERRY BUSINESS

Kerry is the No. 1 private express delivery services in Thailand, with a network of more than 2,500 services points nationwide and more than 6,000 delivery vehicles.

Remark: VGI total shares = 8,556,680,098 shares, which based on shares after exercise of VGI-W1 and subscription of PP by Kerry. 1 BTS includes 45.0% of BTSC, 23.1% of BTSG and 0.6% from Kanjanapas Family 2 Kerry Express includes 1.3% of KLN Logistics, 0.1% of Siam Chao Phraya Express and Gather Excellence

BTS Public

VGI

KERRY Express (Thailand)

68.7%1 29.9% 1.4%2



Media Update

TRANSIT MEDIA

Station Sponsorship Campaign

• AIS at Siam

• Shopee at Phrom Phong and Victory Monument

• Line Mobile at Mo Chit and Sala Daeng

• Krung Thai at Ploen Chit

• AEON brand at Asok

• McDonald’s at National Stadium

• Netflix at Thong Lo

• Werk Co-working Space at Ratchadamri

OFFICE MEDIA

• Total 175 office buildings (1,350 digital screens)

OUT-OF-HOME MEDIA

DIGITAL SERVICES

OFFLINE PAYMENT

• 9.3mn cardholders

• 6,400 retail points

• 177 brand partners

ONLINE PAYMENT

• 3.4mn Rabbit LinePay members

• 991 merchants

MICRO LOAN SERVICES

• THB 1,380mn


(162) (254) (8)

1,643

148 (611)

(768)

(458)

(172)

(25) (11)

233

2Q 2017Net Loss

OperatingRevenue

OtherRevenue

OperatingCost

SG&A FinanceCost

Depr. &Amort.

Share ofProfit

Income Tax 2Q 2018Net Loss

DeferredGain &

Adjustment

1Q 2017/18Share of

Loss U City


Property Update U City Performance and Share of net Loss from U City Breakdown

FX Loss Vienna House Loans THB 221mn

Vienna House Operating Expenses THB 438mn

Vienna House SG&A THB 518mn

• Release of Deferred Gain THB 107mn (1Q 2018/19)

• One-time adjustment of PPA Vienna House THB 125mn (for 2Q 2017 -1Q 2018)

(38.9% stake)

1Q 2018/19

(THB mn)

Agenda

Section


Section

2 Section

3

BUSINESS UPDATES


APPENDICES

24 BTS Group Earnings Presentation


25

Mass Transit Update Progress of BTS Targeted Lines

Sources: MRTA, the Company

FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22

WESTERN GREEN LINE EXT. (Bang Wa – Taling Chan) 7.0km/ 6 stations



Expected open bid/ award


LRT (Bangna - Suvarnabhumi) 18.3km/ 14 stations

GREY LINE PHASE 1 (Watcharaphon - Thonglo) 16.3km/ 15 stations

ORANGE LINE (Min Buri – Taling Chan) 39.6km/ 29 stations

HIGH SPEED RAIL (Don Mueang – Suvarnabhumi – U-Tapao) 220km/ 15 stations






FY 22/23 FY 23/24 FY 24/25


Construction Period

Construction Period

Construction Period

Construction Period

Construction Period

BTS Group Earnings Presentation Appendix


26

Mass Transit Update BTS Services Disruption on 25-27 June 2018

Replaced “Motorola” radio receiver by “Moxa” 1.

Moved our signaling system to new frequency channel bandwidth 2480-2495 MHz

2.

Installed the band-pass filter 3.

Service Delays due to external radio interference

PROBLEM

SOLUTIONS

2.4 MHz 2.5 MHz

MOTOROLA

MOXA

2.48 MHz

SkyPurse1

BTS MEASURE DURING

25-27 JUN 18

(Adult, Student and Senior)

Monthly Pass2

3 Free-trips3

6 Free-trips3

MEASURE

1cards used during 25-27 Jun 2018

2monthly cards which comprise of remaining trips during the services delay (25-27 Jun 2018)

7-31 Jul 2018

7-31 Jul 2018

CLAIMABLE PERIOD CARD TYPE

3additional trips must be used within 45 days from date of issue and will be valid for 30 days from the first-use date

BANDWIDTH

completed by 30 Jun

SJT Cash refund or retain within 14 days 7-31 Jul 2018

completed by 30 Jun

completed by 5 Jul

(Adult and Student)



27

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 and train procurement for Green Line South and North extensions

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-W4 Term Sheet

28 BTS Group Earnings Presentation Appendix

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**

ALLOCATION TO EXISTING SHAREHOLDERS AT THE RATIO OF 9 EXISTING BTS SHARES : 1 BTS-W4

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

Documents

BTS Group Holdings PCLbts.listedcompany.com/misc/presentation/20180816-bts-am-1q201819-04.pdfAug 16, 2018 · Investment involves risk. Prospective should understand the characteristics