Post on 10-Mar-2020
transcript
prepared by Investor Relations department BTS Group Holdings PCL
BTS Group Holdings PCL
BTS Group General Presentation
GROUP GENERAL PRESENTATION AUGUST 2014
prepared by Investor Relations department BTS Group Holdings PCL
IR Contacts
BTS Group General Presentation
This document has been prepared and distributed by the Investor Relations Department of BTS Group Holdings Plc. (“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: ir@btsgroup.co.th Website: www.btsgroup.co.th
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prepared by Investor Relations department BTS Group Holdings PCL
Contents
BTS Group General Presentation
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
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BTS Group History
BTS Group General Presentation Section 1: BTS Group Holdings PCL
Company established as Tanayong Co., Ltd. to operate in property development field
Tanayong listed on The Stock Exchange of Thailand under Property Development sector
Tanayong established a wholly-owned subsidiary, Bangkok Transit System Corporation Ltd. (BTSC), which won the SkyTrain concession bid
Commercial operation of the BTS SkyTrain began
BTSC exit court supervised rehabilitation procedure
BTSC expanded into Media business through the acquisition of 100% of VGI Global Media Co., Ltd.
Tanayong acquired 94.6% of BTSC, returning Mass Transit operations to be the primary business of the Company. The Company also changed its name to BTS Group Holdings PCL
1968 1991 1992 2008 2009 1999 2010 2012 2013
MAY: BTSC signed a 30-year operating & maintenance (O&M) contract covering all Green Line extensions under the purview of the Bangkok Metropolitan Administration (BMA) OCT: The Group’s Media subsidiary, VGI Global Media PCL, listed on The Stock Exchange of Thailand
APR: BTSC sold the future Net Fare-box Revenue under its Concession Agreement to BTS Rail Mass Transit Infrastructure Fund (BTSGIF)
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Shareholding Structure
BTS Group General Presentation Section 1: BTS Group Holdings PCL
KANJANAPAS FAMILY OTHERS
BTSC
MEDIA2
1 Information based on the close book date as at 10 Jun 14 with total issued shares = 11,914.2mn shares 2 Major subsidiaries and associates only. Please see the full shareholding structure of the Company in Appendix 1: Shareholding Structure 3 BTSG holds 62.2% in VGI indirectly and directly
TOP INSTITUTIONAL INVESTORS
1
11.2%
41.0%1 19.1%1 39.9%1
BTS GROUP
97.5%
VGI BTS ASSETS CO., LTD. TANAYONG INTERNATIONAL LTD.
MAK8 CO., LTD.
CARROT REWARDS CO., LTD.
HHT CONSTRUCTION CO., LTD.
BANGKOK SMARTCARD SYSTEM
CO., LTD.
100%
87.5%
100%
100%
100%
51.0%
90.0%
51.0%3
THANA CITY GOLF & SPORTS CLUB CO., LTD.
BTSGIF
33.3%
MAN KITCHEN CO., LTD.
Listed entities
MASS TRANSIT2
70.0% NUVO LINE AGENCY CO., LTD.
100%
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PROPERTY2 SERVICES2
prepared by Investor Relations department BTS Group Holdings PCL
1 121
399
126
FY 11/12 FY 12/13 FY 13/14 1Q 14/15
728 1,445
2,934
319
FY 11/12 FY 12/13 FY 13/14 1Q 14/15
1,959 2,795 3,121
754
FY 11/12 FY 12/13 FY 13/14 1Q 14/15
5,177 6,016
2,312 545
FY 11/12 FY 12/13 FY 13/14 1Q 14/15
BTS Group Overview 4 Business Units
BTS Group General Presentation Section 1: BTS Group Holdings PCL
MASS TRANSIT
PROPERTY
MEDIA
SERVICES
(1) FY ended 31 March (2) Services revenue excludes revenue of HHT Construction (Thailand) Co., Ltd. as it is consolidated as cost of project under Property business
Historical operating revenues(1)
Media Revenue (THB mn)
Property Revenue (THB mn)
Services Revenue(2) (THB mn)
Mass Transit Revenue (THB mn)
31%
43%
18%
7%
Revenue contribution
26%
36%
33%
5%
FY 13/14 1Q 14/15
FY 13/14 1Q 14/15
FY 13/14 1Q 14/15
FY 13/14 1Q 14/15
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prepared by Investor Relations department BTS Group Holdings PCL
THB (mn) USD (mn)*
OPERATING REVENUE 8,767 268
OPERATING EBITDA 3,423 105
NET INCOME** 12,645 387
TOTAL ASSETS 76,757 2,350
MASS TRANSIT 2,037 MEDIA 514
PROPERTY 821 SERVICES 378
BTSG at a glance
BTS Group General Presentation Section 1: BTS Group Holdings PCL
KEY FIGURES (as of 31 Mar 2014)
EMPLOYEES (as of 31 Mar 2014)
PROGRESSIVE DIVIDEND POLICY
SHARE INFORMATION (as of 30 Jun 2014)
TOTAL 3,813
STOCK CODE BTS
OUTSTANDING SHARES (MN SHARES) 11,914.2
MARKET CAPITALISATION (THB MN) 103,058.1
MARKET CAPITALISATION (USD MN) 3,176.9
AVERAGE DAILY TRADED VALUE (THB MN) 515.4
AVERAGE DAILY TRADED VALUE (USD MN) 15.9
*Source: Bank of Thailand, based on weighted-average Interbank Exchange Rate of USD 1 = THB 32.657 as of 28 May 2014 **to equity holders of the parent
Minimum THB 21bn committed dividends over 3 years
No less than THB 6bn in 2013/14
No less than THB 7bn in 2014/15
No less than THB 8bn in 2015/16
Not less than 50% of net profit (stand alone basis)
BTS GROUP HOLDINGS 63
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prepared by Investor Relations department BTS Group Holdings PCL
Investment Highlights
BTS Group General Presentation Section 1: BTS Group Holdings PCL
GROWTH
INCREASE IN RIDERSHIP: Prime beneficiary of mass transit development and market share shift from bus to rail. Increasing ridership on Core network; increasing ‘eyeballs’ for BTS-related media
GROWING WITH RETAIL PARTNERS: automatic rights to manage advertising space in new Modern Trade branches
SHAREHOLDER RETURN
HIGH DIVIDEND YIELD: 3-year progressive dividend policy with minimum committed amount of THB 21bn SECURE BUSINESS: underlying concession with advertising rights on BTS until 2029; O&M contract until 2042
OPPORTUNITIES
STRONG FINANCIAL POSITION: BTS Group has excess cash and liquid investments of THB 31.8bn FUTURE MASS TRANSIT LINES: potential developer and operator of future mass transit lines and extensions EXPANSION OF FRANCHISE: expansion of VGI Global Media franchise to new extension lines and other
markets
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NET RECURRING PROFIT
153.5%
278
902 1,146
2011/12 2012/13 2013/14
1,047 1,030
2,612
2011/12 2012/13 2013/14
176 197 215
2011/12 2012/13 2013/14
2,748 4,359
7,073
2011/12 2012/13 2013/14
Key Developments 2013/14
BTS Group General Presentation Section 1: BTS Group Holdings PCL
Commencement of 4 stations of Silom line (Bang Wa) extension New carriages into service (all 4-car trains across the network) Organic growth and development along the lines
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RIDERSHIP
8.9% MEDIA NET PROFIT
27.1%
Increase in train capacity (35 single cars) Introduction of new digital media
Improvement in operations Reduction in finance costs
DIVIDEND PAYMENT
62.3%
Progressive dividend payment
(THB mn) (THB mn)
(THB mn) (THB mn)
prepared by Investor Relations department BTS Group Holdings PCL
Contents
BTS Group General Presentation
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
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prepared by Investor Relations department BTS Group Holdings PCL
74.2 79.5 94.8 100.1
410.0
464.0
31.0 31.0 31.0 36.3
121.8
2010 2011 2012 2013 2019T 2029T
Target Network Length in km
BTS Target Distance in km
T = Target
*
THB 1.5bn
>THB 10bn
2013 2018 TARGET
6x
36.3km
121.8km
2013 2018 TARGET
3x
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BTS Group Vision 2018
BTS Group General Presentation Section 2.1: Mass Transit Business
“TO BE THAILAND’S LEADING MASS TRANSIT DEVELOPER AND OPERATOR”
3X BKK MASS TRANSIT COVERAGE
6X MASS TRANSIT O&M REVENUE
O&M = Operation and Maintenance
MASS TRANSIT RAIL LENGTH TARGETS (KM)
*Source: Office of Transport and Traffic Policy and Planning
prepared by Investor Relations department BTS Group Holdings PCL
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Role of BTS Group in Mass Transit Investor, Operator, Developer, Concessionaire
OPERATOR OF CORE NETWORK EXTENSIONS DEVELOPER OF RAIL MASS TRANSIT
BTS GROUP
ROLE IN MASS TRANSIT
OPERATOR OF BTS SKYTRAIN CORE NETWORK
Underlying assets have 14 year track record Growth & resilience characteristics Stable and growing dividend yield Full beneficiary of
Ridership growth Fare increases Operating leverage until Dec 2029
Exclusive operator of BTS SkyTrain Core Network (23.5km) 14 year track record Operate at cost, but potential benefit from incentive fee Limited CAPEX, large CAPACITY Remain legal concessionaire
Appointed to operate & maintain Green line by the Bangkok Metropolitan Administration (BMA) Track record since 2009 30-year contract covering Green line extensions (12.8km) from 2012 - 2042 Also covers Core Network (23.5km) from 2029 to May 2042 No ridership risk
Original developer of BTS Core SkyTrain Network Expertise as well as financial capability to invest in future mass transit lines
33.3% INVESTMENT IN BTSGIF
O
O
D
I
BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
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Bangkok Rail Mass Transit Master Plan 464 km by 2029, 42.4% share of Mass Transit commute by 2032
Source: Office of Transport and Traffic Policy and Planning
Source: United Nations Statistics Division, BTSC, BMCL, MTR Corporation Limited, SMRT Corporation Limited, official websites of rail mass transit system in major cities
Seoul 51% Hong Kong 46% Singapore 40% Tokyo 36% Guangzhou 17% Bangkok 6%
RAIL MASS TRANSIT MARKET SHARE*
Hong Kong 34.7 Singapore 34.2 Tokyo 24.2 Bangkok 7.6
PERVASION (per million population)
Source: OTP, Singapore’s Land Transport Authority, Hong Kong’s Transport Department, MTR Corporation Limited, SMRT Corporation Limited, Japan Statistic Bureau
(rail track length per mn population)
* Percentage of people using rail mass transit over other forms of mass transit
13 BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
Existing Bangkok Mass Transit Network Immature network, 100.1km as of 2013
LINE ROUTE DISTANCE
(KM) OPERATING
SINCE
DARK GREEN (CORE)
MO CHIT – ON NUT 17.0 DEC 99
LIGHT GREEN (CORE)
NATIONAL STADIUM – SAPHAN TAKSIN
6.5 DEC 99
BLUE BANG SUE –
HUA LAMPHONG 20.0 JUL 04
LIGHT GREEN (EXTENSION)
SAPHAN TAKSIN – WONGWIAN YAI
2.2 MAY 09
RED LINE AIRPORT LINK
PHAYATHAI – SUVARNABHUMI
28.5 AUG 10
DARK GREEN (EXTENSION)
ON NUT – BEARING 5.3 AUG 11
SRT LINE BANG SUE –
TALING CHAN 15.3 NOV 12
LIGHT GREEN (EXTENSION)
WONGWIAN YAI – BANG WA
5.3 DEC 13
EXISTING LINES - 100.1KM; 64 STATIONS
CORE NETWORK
3 RAIL MASS TRANSIT OPERATORS
BTS: 36.3km (SkyTrain)
BMCL: 20.0km (Underground)
SRT: 43.8km (Airport Rail Link & SRT Line)
EXTENSIONS TO OUR CURRENT CORE NETWORK
14 BTS Group General Presentation Section 2.1: Mass Transit Business
LIGHT GREEN NATIONAL STADIUM – BANG WA 14.0km
DARK GREEN MO CHIT – BEARING 22.3km
BLUE BANG SUE - HUA LAMPHONG 20.0km
SRT BANG SUE – TALING CHAN 15.3km ARL
PHAYATHAI - SUVARNABHUMI 28.5km
prepared by Investor Relations department BTS Group Holdings PCL
BTS Group: INVESTOR in BTSGIF (Core Network) Prime position to capture growth from Network Expansion
BTSGIF has the rights to receive the NET FAREBOX REVENUE collected by BTSC on the SkyTrain Core Network until Dec 2029
Formerly, these revenues were retained by BTSC in accordance with the terms and conditions of its Concession Agreement with the BMA on the Core Network*
In Apr 2013, BTSC SOLD THE RIGHTS TO NET FAREBOX REVENUE under its concession agreement for the BTS SKYTRAIN CORE NETWORK to BTSGIF
NO REVENUE SHARING TO BMA
BTS Group used the proceeds to purchase 1/3 units in BTSGIF which is the maximum permitted amount under SEC regulations
BTS Group is subject to a lock up of 10 years on these units
*See Appendix 2 for details of Concession Agreement
WHAT IS BTSGIF?
WHAT IS THE CORE NETWORK?
23 stations, 23.5km located at the heart of Bangkok Inaugural Mass Transit route, operated since Dec 1999 NO REVENUE SHARING TO BMA
I
DARK GREEN MO CHIT – ON NUT 17.0km
LIGHT GREEN NATIONAL STADIUM - SAPHAN TAKSIN 6.5km
15 BTS Group General Presentation Section 2.1: Mass Transit Business
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1,4
19
1,7
80
2,1
22
2,2
94
2,5
73
2,8
17
3,0
66
3,2
24
3,2
92
3,4
85
3,5
45
4,2
97
4,8
96
5,6
77
59 79
96 105 118
132 139 133 136 144 145
176 197
215
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Farebox revenue (THB mn) Ridership (mn)
BTS Group: INVESTOR in BTSGIF (Core Network) Uninterrupted revenue growth and resilient under pressure
Jul 04: Opening of Bangkok MRT System (Blue line)
May 10: Opening of Bangkok BRT;
Thai political protests
Aug 10: Opening of Airport Rail Link
Aug 11: On Nut – Bearing extension opening
Oct – Nov 11: Floods
INITIAL GROWTH RIDERSHIP CAGR (3 YRS): 21%
STABLE GROWTH RIDERSHIP CAGR (5 YRS): 5%
FASTER GROWTH RIDERSHIP CAGR (5 YRS) 10%
Dec 99: BTS SkyTrain service opening
Mar 07: First fare rate increase
I
May 09: Opening of Silom Line extension
Farebox revenue CAGR: 11.3% Ridership CAGR: 10.5%
GROWTH (13 YRS)
16 BTS Group General Presentation Section 2.1: Mass Transit Business
Nov 13: Thai political protests
Dec 13: Wongwian Yai – Bang Wa extension opening
Apr 13: Sale of net farebox revenue to BTSGIF
Jun 13: Fare increase
prepared by Investor Relations department BTS Group Holdings PCL
SJT 40% AVG FARE THB 30.2
30-DAY PASS (STUDENT)* 8% AVG FARE THB 19.6
30-DAY PASS (ADULT)* 29% AVG FARE THB 23.6
PURSE (STV)* 22% AVG FARE THB 25.4
ONE-DAY PASS 1% AVG FARE THB 32.7
21
.4
22
.1
24
.2
24
.2
24
.1
24
.4
24
.4
24
.8
26
.4
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
BTS Group: INVESTOR in BTSGIF (Core Network) Flexibility to increase fares
FARE ADJUSTMENT MECHANISM
Can be adjusted no more than once every 18 months by making announcement to BMA and public 30 days in advance Must not exceed the Authorised fare
EFFECTIVE FARE
Normal situation: upon change of Bangkok’s CPI >=5%, may adjust up to 7% (No approval required)
Special situation: upon change of CPI (>= 9%), USD/THB foreign exchange rate, interest rate or electricity costs (BMA approval required)
AUTHORISED FARE
HISTORICAL AVERAGE FARE RIDERSHIP BY TICKET TYPES (FY 13/14)
I
DISTANCE-BASED FARE (BY NO. OF STATIONS)
THB / Trip
20.1
26.8
33.5
40.2
46.9
53.6
60.3
15.0
22.0 25.0
28.0 31.0
34.0 37.0
42.0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
AUTHORISED FARE
EFFECTIVE FARE
POTENTIAL FARE UPSIDE
NO. OF STATIONS
THB
* Counted as Rabbit
17 BTS Group General Presentation Section 2.1: Mass Transit Business
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367 387 391 417 377 365 344 336
59
171 200
59
40 27 11 79
250
300
350
400
450
500
550
600
650
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Major overhaul expenses General maintenance expense
(THB mn)
67.8%
22.6%
44.8%
69.1%
15.1%
44.3%
BTS SkyTrain* Singapore MRT* Hong Kong MTR**
FY 12/13 FY 13/14
144 145
176
197
215
54.9% 57.1%
67.5% 67.8% 69.1%
2009/10 2010/11 2011/12 2012/13 2013/14
Core BTS SkyTrain Ridership (mn) Core BTS SkyTrain Op EBITDA margin (%)
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STRONG RIDERSHIP GROWTH ALONG WITH SUSTAINED MARGIN EXPANSION
CORE COSTS AND SG&A BREAKDOWN
EBITDA MARGIN COMPARISON (CORE ONLY)
MAINTENANCE EXPENSES BREAKDOWN
I BTS Group: INVESTOR in BTSGIF (Core Network) Efficient operation; further scope for cost efficiency
BTS Group General Presentation Section 2.1: Mass Transit Business
OTHERS, 2%
ADMIN, 8%
SELLING EXPENSES, 5%
STAFF COSTS, 35%
MAINTENANCE, 26%
UTILITIES, 24%
* FY ending 31 Mar 2013, 2014 ** FY ending 31 Dec 2012, 2013
prepared by Investor Relations department BTS Group Holdings PCL
ESTIMATED FLEET***
X7 28 +54.3%
70
+100.0%
TOTAL CURRENT FLEET X59 306
CURRENT FLEET NO. OF TRAINS TOTAL CARRIAGES CAPACITY INCREASE (CUMULATIVE)
INDICATIVE CAPEX (THB mn)
X35 105 FULLY PAID
X12 48
35
+22.9%
FULLY PAID
~THB 2.3bn (paid ~THB 2.0bn)
X5 20
+35.9%
~THB 1.2bn (paid ~THB 1.1bn)
TOTAL CURRENT FLEET X52 208
BTSGIF Investment Core Concession for BTS Core SkyTrain network Ample capacity with limited Capex for concession period
SYSTEM DESIGN
CAPACITY
OF 50,000 PPHPD*
CURRENT CAPACITY
OF 24,000** PPHPD * Based on 2 assumptions: i) 6-car trains in service and ii) 2 min headway ** Based on Sukhumvit Line morning peak time *** Based on existing contracts (core network and O&M contracts up to 2042)
Already operated in May 2013
Already fully operated in Feb 2014
19 BTS Group General Presentation Section 2.1: Mass Transit Business
Expect to order in 2017, expect to be delivered in 2019
Expected required by 2032
prepared by Investor Relations department BTS Group Holdings PCL
BTSC is the OPERATOR of the Core Network Thailand’s most experienced Operator
Reliable Operations Team with 14-year track record Impeccable safety record Strong management expertise
OPERATED & MAINTAINED THE CORE NETWORK SINCE 5 DEC 1999
REMAINS THE CORE NETWORK OPERATOR FOLLOWING
ESTABLISHMENT OF BTSGIF
BTSC operates the Core Network on behalf of BTSGIF It deducts OPEX and CAPEX at cost (no margin) BTSC receives an incentive fee from BTSGIF
Net Farebox Revenue (transferred to BTSGIF daily)
FAREBOX REVENUE OPERATING EXPENSES
CAPITAL EXPENDITURE
Incentive Fee
All farebox revenue from passengers in the Core BTS SkyTrain system
Other revenue and compensation from any person under, arising out of or relating to concession or the farebox revenue of the Core BTS SkyTrain system
Excludes revenue from O&M business extension, media business and revenue from BTSC’s other business
Cost relevant to the Core BTS SkyTrain system such as maintenance capital expenditure, labor, electricity, etc.
New rolling stock for the Core BTS SkyTrain system to serve future ridership
net of PAYABLE BY BTSGIF TO BTSC ONLY WHEN NET FAREBOX REVENUE EXCEEDS BUDGET
1. NO INCENTIVE FEE If actual Net Farebox Revenue ≤ 100%
of Budget 2. 10% INCENTIVE FEE On actual amount exceeding 100% but not exceeding 125% of Budget 3. FEE FROM ITEM 2 PLUS 15% OF THE
INCREMENTAL AMOUNT EXCEEDING 125%
If actual amount > 125% of Budget
O
20 BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
BTSC: OPERATOR of Green Line Extensions 12.8km of extensions already under contract
O&M COSTS AND SG&A BREAKDOWN
BTSC has operated & maintained the extensions since 2009 Agreed fee income with no ridership risk 30-year contract now covers:
11 stations/12.8km extensions (May 2012 – May 2042) 23 stations/ 23.5km Core Network (Dec 2029 – May 2042)
Existing extensions LIGHT GREEN: Saphan Taksin - Wongwian Yai (2.2km/2 stations) DARK GREEN: On Nut – Bearing
(5.3km/5 stations) LIGHT GREEN: Wongwian Yai - Bang Wa
(5.3km/4 stations)
2012 2015* 2031
2042
THB 1,700 mn
THB 6,000 mn
O&M CORE
Year
CAGR 3.8%
CAGR 3.8% O&M EXTENSION
* Including full year effect of Wongwian Yai – Bang Wa extension
O&M figures (excluding VAT)
O
21 BTS Group General Presentation Section 2.1: Mass Transit Business
MAINTENANCE, 13%
STAFF COST, 38%
OTHERS, 11%
CLEANING & SECURITY GUARD, 8%
DEPRECIATION, 17%
UTILITIES, 13%
prepared by Investor Relations department BTS Group Holdings PCL
LINE ROUTE AUTHORISING
BODY OPERATE YEAR
CONSTRUCTION PROGRESS
DISTANCE (KM)
PURPLE BANG YAI - BANG SUE MRTA 2015* UNDER CONSTRUCTION 23.0
BLUE HUA LAMPHONG - BANG KHAE MRTA 2016* UNDER CONSTRUCTION 14.0
BLUE BANG SUE - THA PRA MRTA 2016* UNDER CONSTRUCTION 13.0
DARK RED BANG SUE - RANGSIT SRT 2017* UNDER CONSTRUCTION 26.3
DARK GREEN SOUTH
BEARING - SAMUT PRAKARN MRTA 2017** UNDER CONSTRUCTION 12.8
DARK GREEN NORTH
MO CHIT – SAPHAN MAI – KHU KHOT
MRTA 2018 - 2019** 18.4
LRT BANG NA - SUVARNABHUMI BMA 2017* 18.3
PINK LINE KHAE RAI – PAK GRED –
MIN BURI MRTA 2017* 36.0
DARK GREEN SAMUT PRAKARN - BANGPU MRTA 2018*** 7.0
LIGHT RED BANG SUE - PHAYATHAI -
MAKKASAN SRT 2017* 9.0
LIGHT RED MAKKASAN - HUA MAK SRT 2017* 10.0
DARK RED RANGSIT –
THAMMASART UNIVERSITY SRT 2017* 10.0
DARK RED BANG SUE - HUA LAMPHONG SRT 2017* 6.5
TOTAL (KM) 204.3
204.3KM ONGOING PROJECTS PRIORITISED BY THE GOVERNMENT, 89.1KM UNDER CONSTRUCTION
CORE AND EXTENSIONS TO OUR CURRENT LINES LINES CONNECTING TO OUR LINES
85.5km
BTS Group: Potential DEVELOPER of Mass Transit Extensions Focused on 4 extension lines; total length of 85.5km
D
Sources: * Office of Transport and Traffic Policy and Planning ** National Council for Peace and Order *** Mass Rapid Transit Authority of Thailand
22 BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
BTS Group: Potential DEVELOPER of Mass Transit extensions BTSG well-positioned for new contracts
BTSG is WELL-POSITIONED FOR NEW CONTRACTS
Relevant expertise Financial strength Green line advantage
New contracts are expected to be on a ‘PPP GROSS COST BASIS’
Operator to invest in civil works and E&M works with repayment from government Operator given operation contract Variations will be considered
Light Rail Transit (LRT) Bang Na – Suvarnabhumi 18.3km; completed by 2017
Dark Green South Line Bearing – Samut Prakarn 12.8 km; completed by 2017
Light Green Line National Stadium – Yodse
1.0 km; completed by 2019
Dark Green North Line Mo Chit – Saphan Mai – Khu Khot
18.4 km; completed by 2018
Pink Line Khae Rai – Min Buri 36.0 km; completed by 2017
Dark Green North Line Kukod – Lamlukka 6.5 km; completed by 2019
Dark Green South Line Samut Prakarn – Bang Pu
7.0 km; completed by 2018
D
*See Appendix 3 for details of CAPEX requirements
23 BTS Group General Presentation Section 2.1: Mass Transit Business
Sources: Office of Transport and Traffic Policy and Planning and Mass Rapid Transit Authority of Thailand
prepared by Investor Relations department BTS Group Holdings PCL
With 6 distinctive advantages, we are in very good position to achieve our vision
Dark Green North
(Mo Chit – Saphan Mai –
Khu Khot)
Dark Green South
(Bearing – Samut Prakarn)
Pink LRT
1) The only operator who can provide seamless services
~15-minute interchange time saved*
2) Lower project CAPEX
3) Lower O&M OPEX ~10% operating costs and 15% maintenance costs saved*
4) Proven track records • 14 years’ experience in running BTS core lines • Complete BTS core line construction in 35mths
5) Financial strength with THB 31bn excess liquidity
6) Financial flexibility from the new Warrant 3
*compared between seamless model and shuttle service model
24 BTS Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
25
Contents
BTS Group General Presentation
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
prepared by Investor Relations department BTS Group Holdings PCL
86.5 90.0 91.4 89.8 92.6 103.5 105.4
114.4 113.4
0.7 1.0 1.1
1.5 1.8
2.3 2.6
3.2 3.5
0.1 0.4
0.6 0.8 0.8 1.2
1.8
2.8 2.5
Total market Transit In-store
TV 60%
In-Store 2%
Radio 5%
Outdoor 4%
Newspapers 13%
Transit 3%
Magazines 5%
Cinema 7%
Internet 1%
Source: The Nielsen Company (Thailand) Limited
Total market value of advertisement industry = THB 113.4bn
Thai media market overview (2013/14)
Source: The Nielsen Company (Thailand) Limited
Historical Thai ad expenditures (THB bn)
Top 10 ad spending by segments (FY 13/14)
Industry CAGR
3.8%
Transit CAGR
21.7%
In-store CAGR
45.5%
Overview of Media Business
Note: Excludes classified and house ads.
OVERALL MEDIA INDUSTRY 1 FMCG 39% 2 Motor vehicles 9% 3 Communications 7% 4 Govt. & community announcement 6% 5 Leisure 4% 6 Retail shops/stores 3% 7 Banks 3% 8 Real estate 3% 9 Insurance 2%
10 Pharmaceuticals 2% TOP 10 78%
VGI MASS TRANSIT 1 FMCG 42% 2 Communications 10% 3 Food outlets & restaurants 5% 4 Travel & tours 4% 5 Leisure 4% 6 Banks 4% 7 Real estate 3% 8 Retail shops/stores 3% 9 Electrical products 3%
10 Photographic products 2% TOP 10 80%
VGI IN-STORE 1 FMCG 92% 2 Motor vehicle accessories 2% 3 Motor vehicles 2% 4 Communications 1% 5 Food outlets & restaurants 1% 6 Multi sections advertising 0.5% 7 Pharmaceuticals 0.5% 8 Govt. & community announcement 0.3% 9 Real estate 0.2%
10 Retail shops/stores 0.1% TOP 10 100%
Source: The Nielsen Company (Thailand) Limited Note: Excludes classified and house ads.
26 BTS Group General Presentation Section 2.2: Media Business
prepared by Investor Relations department BTS Group Holdings PCL
53.2% 49.4%
41.5% 44.7%
5.3% 5.9%
FY13/14 FY12/13
812 970
1,124 1,370
1,959
2,795 3,121
458 572 649 756 1,012
1,386 1,580
07/08 08/09 09/10 10/11 11/12 12/13 13/14
Operating Revenue Operating EBITDA
27
Media Business: Financial Performance High Margins, No Leverage
Revenues by business unit
Operating EBITDA margin
Operating revenues and Operating EBITDA
Cost (% Rev) breakdown - FY 2013/14
(THB mn)
BTS MODERN
TRADE OFFICE BUILDING
AND OTHERS TOTAL
CONCESSION N/A 53% 23% 23%
DEPRECIATION (COST)
1% 4% 2% 2%
STAFF COSTS 2% 5% 1% 3%
OTHERS 9% 13% 6% 10%
TOTAL COST 10% 76% 31% 39%
FY 13/14 FY 12/13
OVERALL 52% 51%
BTS-RELATED 78% 80%
MODERN TRADE 17% 17%
OFFICE BUILDING & OTHERS 59% 62%
BTS Group General Presentation Section 2.2: Media Business
BTS-related
Modern Trade
Office Buildings
prepared by Investor Relations department BTS Group Holdings PCL
871
1,125
1,379
1,660
2010/11 2011/12 2012/13 2013/14
BTS SkyTrain Media Exclusive rights for the Core BTS SkyTrain Network
BTS Media Revenue (THB mn)
CAGR (3 years) = 24.0%
KEY CONCESSION TERMS
Exclusive rights for 23 stations & all BTS trains In Trains & On-Stations Merchandising Area Additional areas
RIGHTS
First right to renew contract and extend space on additional mass transit projects that BTSC is granted the rights to operate media space
18 May 2012 – 4 December 2029
EFFECTIVE PERIOD
CONCESSION FEE (PAYABLE TO BTSC)
5% - 20% of total revenues/year (an incremental increase of 5% every 5 years)
PAST SUCCESS
DIGITAL MEDIA
STATIC MEDIA (ON BTS SKYTRAIN & PLATFORMS)
Platform Truss LED & Platform Screen Door Digital Screen inside the train
Train Body Wrap Cladding
MERCHANDISING SPACE
Merchandising Shop Merchandising Shop
28 BTS Group General Presentation Section 2.2: Media Business
prepared by Investor Relations department BTS Group Holdings PCL
Modern Trade Media
KEY CONCESSION TERMS
RIGHTS
Exclusive rights for existing and upcoming branches Tesco Lotus Big C (including former Carrefour)
LENGTH OF CONTRACT
3-5 years on average
LICENSE FEE
Mainly based on percentage of revenue sharing and minimum guarantee
PAST SUCCESS
Acquired exclusive rights to manage all advertising areas from Tesco Lotus and Big C, the top 2 players in the Modern Trade Retailer industry
Big surge in revenue (93% growth in FY 2011/12) mainly from sales floor areas, which account for over 70% of total Modern Trade Media revenue
Shelf Divider
Radio Media in Tesco Lotus & Big C
Shelf Frame
& Floor Sticker
Sensormatic
Health and Beauty Zone
Aisle Arch
STATIC MEDIA
Sales Floor Area Non-Sales Floor Area
Entrance Lightbox
29 BTS Group General Presentation Section 2.2: Media Business
DIGITAL MEDIA
prepared by Investor Relations department BTS Group Holdings PCL
30
Office Buildings and Other Media
KEY CONTRACT TERMS
RIGHTS AND LENGTH OF CONTRACT
Office Buildings 83 buildings in CBD, 3-5 years contract (avg.) Outdoor LED (Selling Agent) 4 locations in Bangkok 1 year contract with renewable rights Chulalongkorn University (CU) Bus 15 buses and 15 bus-stops 1 year contract with renewable rights
LICENSE FEE
Revenue sharing and fixed rates
PAST SUCCESS
Changed to integrated network across all office buildings, increasing sales by 50%
Bundled Office Building Media with the Company’s other media and sold as a package, increasing occupancy and driving sales by 100%
Digital Screen in Elevators Lift Wrap
Rama 9 Junction
Bus Body Wrap Bus Shelter
Pratunam Junction
OFFICE BUILDING MEDIA
CHULALONGKORN UNIVERSITY (CU) BUS
OUTDOOR LED SCREENS
BTS Group General Presentation Section 2.2: Media Business
prepared by Investor Relations department BTS Group Holdings PCL
Contents
BTS Group General Presentation
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
31
prepared by Investor Relations department BTS Group Holdings PCL
18.0%
48.0%
32.9%
Property portfolio
PROPERTY BOOK VALUE BREAKDOWN LAND FOR DEVELOPMENT ALONG MASS TRANSIT ROUTE
Location Total Area (Rai) Total Area (Sqm)
Bangkok 75.0 120,007.6
Samutprakarn 319.8 511,711.6
Nakorn Ratchasima 657.1 1,051,424.0
Chiang Mai and Chiang Rai 163.1 260,992.0 Phuket 37.3 59,740.0
Other Provinces 95.2 152,372.0 Total 1,347.7 2,156,247.2
Complete existing projects Open for joint-venture/divestment Opportunistic strategy
LONG-TERM VISION
EASTIN GRAND HOTEL
ABSTRACTS 66/1
PHAYATHAI: LAND BANK
SITE AREA: 5,658 SQM
MO CHIT: LAND BANK
SITE AREA: 25,862 SQM
ABSTRACTS PHY
THANA CITY GOLF & SPORTS CLUB
SITE AREA: 510,912 SQM
*as of 30 Jun 2014
32 BTS Group General Presentation Section 2.3: Property Business
TOTAL BOOK VALUE:
THB 11.1BN
Land bank THB 3.7bn
Commercial THB 5.4bn
Residential THB 2.0bn
LIST OF LAND BANK
prepared by Investor Relations department BTS Group Holdings PCL
Commercial and Residential Property
COMMERCIAL PROPERTY
RESIDENTIAL PROPERTY
LOCATION: SATHORN, BANGKOK
SITE AREA: 16-0-81 RAI
LAND TENURE: LEASEHOLD, 30 YEARS LEASE CONTRACT WITH TREASURY DEPARTMENT
SIZE: 3 FLR, 86 ROOMS
TOTAL GFA: 16,200 SQM
EXPECTED OPERATION NOV 2014
Debt THB 415mn USD 13mn
Equity THB275mn
USD 9mn
Equity THB275mn
USD 9mn
LOCATION: SATHORN, BANGKOK, DIRECT ACCESS TO BTS SURASAK
SITE AREA: 3,828 SQM (2-1-57 RAI)
LAND TENURE: FREEHOLD
SIZE: 33 FLR, 396 ROOMS
TOTAL GFA: 38,280 SQM
TOTAL NLA: 17,561 SQM
Debt THB 1.8Bn USD 57mn
Equity THB1.3Bb
USD 42mn
EASTIN GRAND SATHORN U SATHORN
LOCATION: 250M FROM NEW BTS STATION
SITE AREA: 33,420 SQM (20-3-55 RAI)
LAND TENURE: FREEHOLD
AVERAGE SALE PRICE: THB 75,000 PER SQM
LOCATION: 250M FROM BTS UDOMSUK
SITE AREA: 3,160 SQM (1-3-90 RAI)
LAND TENURE: FREEHOLD
AVERAGE SALE PRICE: 75,000 PER SQM
ABSTRACTS PHAHONYOTHIN PARK ABSTRACTS SUKHUMVIT 66/1
# UNITS GFA(SQM) NFA(SQM)
TOWER A 1,012 62,091 42,818
TOWER B 1,012 62,091 42,818
TOWER C 1,012 62,091 42,818
TOTAL 3,036 189,273 128,455
# UNITS GFA(SQM) NFA(SQM)
THE MOON 56 4,540 2,500
THE SUN 56 4,540 2,500
TOTAL 112 9,080 5,000
Deposit & Sales
proceed THB 93mn USD 3mn
Equity THB203mn USD 7mn
TDC: THB 296MN (USD 10MN) TDC: THB 2,527MN (USD 81MN)
TDC: THB 690MN (USD 22MN) TDC: THB 3.1BN (USD 99MN)
Debt THB 1,697mm USD 54mn
Equity THB 732mn USD 24mn
Deposit & Sales proceeds THB 196mn USD 6mn
33 BTS Group General Presentation Section 2.3: Property Business
prepared by Investor Relations department BTS Group Holdings PCL
Contents
BTS Group General Presentation
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
34
prepared by Investor Relations department BTS Group Holdings PCL
35
Overview of Services Business
Aim to provide common ticketing system across network >> Mass Transit – BTS, MRT, BRT, etc. >> Retail, Service and Tourism sectors
Received E-Money License from BOT Public launch on 1 May 2012
~3.5mn cards
Targeted potential rabbit cards base from BTS and MRT passengers by Mar 2015
Joint venture originally founded between BTS and HHT Construction, a major HK contractor
Over 50 years of experience in delivering large complex construction projects on time and to the quality demanded by discerning clients
Responsible for project management of all BTS Group property projects
Partnership between BTS and experienced management team, whose track record include Four Seasons Samui & Chiang Rai & JW Marriott Phuket & Bangkok
Provide hospitality and consultancy services for hotel development across Asia
Currently manages 3 to 4 star hotels under “U Hotels & Resorts” and “Eastin Hotels & Residences” brands
Number of hotels 49 80 Number of rooms 5,688 8,000 Under AHS contracts 2013/14 2014/15E
BANGKOK SMARTCARD SYSTEM ABSOLUTE HOTEL SERVICES (AHS)
BTS Group General Presentation Section 2.4: Services Business
prepared by Investor Relations department BTS Group Holdings PCL
Contents
BTS Group General Presentation
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
36
prepared by Investor Relations department BTS Group Holdings PCL
BTSG Financial Performance
(1) Operating EBITDA excludes non-recurring items but includes share of profit (loss) from BTSGIF (2) Net income attributable to equity holders of the parent (3) Operating EBITDA/finance cost (4) Interim and Final dividends, calculated on annual basis using BTS TB closing share price on the date
of the Board of Directors’ meeting approving the relevant dividend
Consolidated financials (THB mn)
FY 13/14
FY 12/13 FY 11/12
FY 10/11
Operating revenues 8,767 10,375 7,720 5,892
Operating expenses 4,110 5,317 4,077 3,358
Non-recurring items 10,973 897 1,189 641
EBITDA 18,533 6,186 5,344 3,206
Operating EBITDA(1) 3,423 5,081 3,913 2,426
Net income(2) 12,645 1,719 2,106 252
Key financial ratios FY 13/14 FY 12/13 FY 11/12 FY 10/11 Profitability ratios (%)
Gross operating profit margin 53.1% 48.8% 47.2% 43.0% SG&A to operating sales ratio 19.9% 16.6% 15.8% 21.7% Accounting EBITDA margin 76.8% 53.3% 57.8% 46.9% Operating EBITDA margin(1) 39.0% 49.0% 50.7% 41.2%
Recurring net profit margin (%) 25.6% 9.7% 13.2% n/a Liquidity ratio Current ratio (times) 4.31x 5.79x 0.94x 1.65x Leverage (Times) Total liability to total asset 0.22x 0.25x 0.45x 0.41x Total liability to total equity 0.28x 0.33x 0.81x 0.70x Net debt to equity (0.02)x 0.17x 0.67x 0.56x Net debt to operating EBITDA (0.35)x 1.66x 6.32x 8.61x Interest coverage(3) 5.43x 4.07x 2.73x 1.51x
Per share ratios (THB per share)
Book value per share 5.11 5.05 4.05 4.48 Dividend yield (4) 7.34%** 4.71% 6.38% 5.00%
REVENUE CONTRIBUTION BY BUSINESS UNIT
REVENUE COMPARISON BY BUSINESS UNIT
** Subject to shareholders’ approval of the final dividend of THB 0.21per share. Dividend yield based on share price as of date prior to Board of Directors’ approval of relevant dividend payment
37 BTS Group General Presentation Section 3: Financial Summary
33%
Property
26%
Mass Transit
36%
Media
FY 2013/14
5%
Services
6,016
2,795 1,445
121
10,376
2,312 3,121 2,934
399
8,767
Mass Transit Media Property Services Total
FY 12/13 FY 13/14(THB mn)
prepared by Investor Relations department BTS Group Holdings PCL
Type No. of outstanding
warrants (mn) Exercise ratio
(warrant : share) Exercise price (THB)
No. of shares (mn)
% Dilution
BTS-WA 11 1 : 0.16 4.375 1.8 0.0%
BTS-WB 16 1 : 1 5.01 16.0 0.1%
BTS-W3 3,971.6 1 : 1 12.00 3,971.6 25.0%
Total 3,989.4 25.1%
DILUTION IMPACT
THB mn
Registered Capital (15,913.1mn shares @ THB 4.0)
63,653
Issued and paid-up (11,914.2mn shares @ THB 4.0)
47,657
Others 8,312
Retained earnings (Deficits) 3,793
Total Shareholders’ Equity 59,762
50,501.7 59,762.3
7,767.3 8,364.6
9,021.9 8,630.2
31-Mar-13 31-Mar-14
Equity Structure
LIABILITIES AND EQUITY SHAREHOLDER’S EQUITY
as of 31 Mar 2014
67,291 76,757 (THB mn)
Equity
Current liabilities
Non-current liabilities
as of 31 Mar 2014
38 BTS Group General Presentation Section 3: Financial Summary
prepared by Investor Relations department BTS Group Holdings PCL
200
600
1,000
190
10
Masstransit
Media Property* Services BTS Group
2014/15 BTS Group Targets and CAPEX
BTS GROUP CAPEX (THB mn)
FY 14/15 TOTAL CAPEX*: THB 2,000MN
* excludes real estate development cost
MASS TRANSIT
MEDIA
5 – 8% Ridership Growth
1% Effective Fare Increase
13 – 17% Revenue Growth
PROPERTY
THB 800mn Residential Property Revenue
THB 1,000mn Commercial Property Revenue
SERVICES
3.5mn Rabbit Cards
17% O&M Revenue Growth
2014/15 BTSGIF CAPEX is expected to be approx. THB 180mn (not included in BTS Group CAPEX)
39 BTS Group General Presentation Section 3: Financial Summary
BTS GROUP TARGETS
prepared by Investor Relations department BTS Group Holdings PCL
Contents
BTS Group General Presentation
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
40
prepared by Investor Relations department BTS Group Holdings PCL
LITTLE CORNER CO., LTD.
MAN KITCHEN CO., LTD.
THANA CITY GOLF & SPORTS CLUB CO., LTD.
NUVO LINE AGENCY CO., LTD.
MAK8 CO., LTD.
TANAYONG PROPERTY MANAGERMENT CO., LTD.
TANAYONG FOOD & BEVERAGE CO., LTD.
100%
100%
30% 50%
50%
Appendix 1: Shareholding Structure
BTS Group General Presentation Appendix 1: Shareholding Structure
1 Information based on the close book date as at 10 Jun 14 with total issued shares = 11,914.2mn shares 2 BTSG holds 62.20% of VGI indirectly and directly
OTHERS
2.5% , 407.7 mn shares
BTSGIF
33.3%
YONGSU CO., LTD.
KANJANAPAS FAMILY OTHERS
BTSC
MASS TRANSIT MEDIA PROPERTY SERVICES
TOP INSTITUTIONAL INVESTORS 1
11.2%
41.0%1 19.1%1 39.9%1
BTS GROUP
97.46%
VGI GLOBAL MEDIA PCL
BTS ASSETS CO., LTD.
ABSOLUTE HOTEL SERVICES CO., LTD.
BANGKOK SMARTCARD SYSTEM CO., LTD.
100%
51%
90%
51.0%2
VGI ADVERTISING MEDIA CO., LTD.
999 MEDIA CO., LTD.
888 MEDIA CO., LTD.
VGI ADVERTISING CHINA CO., LTD.
MIDAS GLOBAL MEDIA CO., LTD.
100%
100%
100%
100%
100%
KAMKOONG PROPERTY CO., LTD.
DNAL CO., LTD.
MUANGTHONG ASSETS CO., LTD.
SIAM PAGING AND COMMUNICATION
CO., LTD.
TANAYONG INTERNATIONAL LIMITED
TANAYONG HONG KONG LIMITED
ABSOLUTE HOTEL SERVICES HONG KONG LIMITED
100%
100%
75.47%
100%
100%
100%
100%
100%
87.5%
100%
100%
100%
100%
Listed entities
70%
12.26%
41
MASTER AD PCL
POINT OF VIEW (POV) MEDIA GROUP CO., LTD.
24.89%
BANGKOK PAYMENT SOLUTIONS CO., LTD.
60%
BTS LAND CO., LTD.
PRANNAKIRI ASSETS CO., LTD.
100% BAYSWATER CO., LTD.
CARROT REWARDS CO., LTD.
HHT CONSTRUCTION CO., LTD.
50%
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 2: Core Network Concession Agreement Key terms and background
BTS Group General Presentation Appendix 2: Core Network Concession Agreement
BTS SKYTRAIN
BTSC BMA
EXCLUSIVE OPERATION RIGHT
CONCESSION AGREEMENT
MINISTRY OF
INTERIOR
AUTHORISATION
BTS SKYTRAIN
BTSC BMA
EXCLUSIVE OPERATION RIGHT
CONCESSION AGREEMENT
MINISTRY OF
INTERIOR
AUTHORISATION
BTSGIF NET REVENUE TRANSFER
AGREEMENT
23 STATIONS, 23.5 KM IN CBD
Connecting Bangkok’s most important business and tourist destinations, serving as the backbone to all Bangkok’s mass transit systems
ALL INVESTMENTS MADE BY BTSC
Including civil works, E&M and trains (except land acquisition) from private sector sources. BTO for civil works, BOT for electrical and mechanical works, including trains
30 YEARS CONCESSION
30 years of concession period ending 4 Dec 2029, approximately 17 years remaining
NO REVENUE SHARING OR CONCESSION FEES FOR BMA
Exclusive right to operate and retain all farebox revenues from BTS SkyTrain System during the period of the concession
SCOPE
Procuring, operating and maintaining the mass transit system. BTS has the right to earn revenues from the business related to the BTS Sky Train's system including advertisement, sublicensing and fare collection for 30 years commencing from 5 Dec 1999
EXTENSIONS
BTS must inform the BMA of such intent at least 3 years (< 5 years) prior to the expiration of the Concession Agreement. The extension is subject to the prior approval of the Interior Minister. BTS is granted a ROFR for negotiations with BMA to construct and operate such network extensions or new routes, provided that BTS matches the best price offered by other potential investors.
42
prepared by Investor Relations department BTS Group Holdings PCL
-
18,849 11,927 12,250
43,026
9,129 20,056
23,152
8,073 12,000
72,410
-
-
-
-
2,400
-
2,400
Dark Green South(Bearing - Samut
Prakarn)
Dark Green North(Mo Chit - Saphan
Mai - Khu Khot)
Pink Line (Kae Rai -Min Buri)
LRT (Bang Na -Suvarnabhumi)
Light Green line(Bang Wa - Taling
Chan)
Grey Line(Watcharaphon -
Rama 4)
Total
Rolling Stock E&M Civil works
Appendix 3: Future Funding Requirements (Mass Transit) BTS Pipeline
BTS Group General Presentation Appendix 3: Future Funding Requirements (Mass Transit)
PROJECTED CAPEX BREAKDOWN OF 6 EXPECTED FUTURE LINES (THB mn)
134,616 KEY ASSUMPTIONS
Total CAPEX for 6 lines = THB 117.8bn with D/E Ratio = 1.5 : 1 Total equity required by BTS Group = THB 47.1bn
Source: Office of Transport and Traffic Policy and Planning (OTP), Mass Rapid Transit Authority of Thailand (MRTA) and Company estimates
117,836
24,250 20,000
42,001
9,129
20,056
2,400
43
prepared by Investor Relations department BTS Group Holdings PCL
(6,734)
(3,946)
(2,570) (2,581)
(395) (349) (302) (256) (209) (163) (116) (70) (23)
2,119 2,100 2,027 1,953 1,879 1,806 1,732 1,658 1,584
1 2 3 4 5 6 7 8 9 10 11 12 13
E&M Interest expense Reimburse from Gov. Interest Income from Gov.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
Appendix 3: Future Funding Requirements (Mass Transit) PPP Gross Cost (E&M only) – Dark Green North (Mochit – Saphan Mai)
BTS Group General Presentation Appendix 3: Future Funding Requirements (Mass Transit)
134,616 THB mn
FINANCING AND REPAYMENT OF E&M
O&M REVENUE
KEY ASSUMPTIONS
1) 3 to 4-year investment period 2) 10-year repayment from govt. 3) Interest rate (neutral) 4) D/E of 1.5x
KEY ASSUMPTIONS
1) 30-year contract from operating date
2) O&M revenue of THB 141mn/km in FY 16/17 with growth rate of 3.5% p.a.
3) EBITDA margin of 40% 4) Tax holiday of 8 years
YEAR
YEAR
1,511
44
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 4: BTS-W3 Term Sheet
BTS Group General Presentation Appendix 4: BTS-W3
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 BTS EXISTING SHARES : 1 BTS-W3
NO. OF WARRANTS 3,971,617,378 UNITS
EXERCISE RATIO 1 BTS-W3 TO 1 NEW COMMON SHARE OF BTS
EXERCISE PRICE THB 12.00 PER SHARE
EXPECTED MAXIMUM
PROCEEDS THB 47,659MN
WARRANTS TERMS AND CONDITIONS
45
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 5: Saphan Taksin Station Removal
BTS Group General Presentation Appendix 5: Saphan Taksin Station Removal
BRIEF INFORMATION
• All costs in relation to station removal & dual track construction covered by BMA
• All costs in relation to walkway construction paid for by BMA
• Walkway construction will take approx 1 year to complete
• Station removal & dual track construction will take approx 1 year to complete
• No service interruption expected in walkway construction & station removal
• No significant impact to BTS SkyTrain core revenue and core cost expected
S5 S6
S7
SURASAK SAPHAN TAKSIN KRUNG THON BURI
46
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 6: BTSC’s Quality Management System
BTS Group General Presentation Appendix 6: BTSC’s Quality Management System
OCCUPATIONAL HEALTH AND SAFETY ZONE CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV).
OHSAS 18001 : 2007
QUALITY MANAGEMENT SYSTEMS CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV).
ISO 9001 : 2008
LLOYDS REGISTER RAIL’S BEST PRACTICE MODEL IMPLEMENTATION.
LLOYDS REGISTER RAIL
ISO 14001: 2004
ENVIRONMENTAL MANAGEMENT SYSTEMS CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV).
47
prepared by Investor Relations department BTS Group Holdings PCL
10 10 10 10 10 10 10 10
15 15 15 15 15 15
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0.0% CAGR
4.6% CAGR
Appendix 7: Fare Adjustment History – Bangkok Concession
BTS Group General Presentation Appendix 7: Fare Adjustment History – Bangkok Concession
BTS (THB) BMCL (THB)
BECL (THB) DON MUANG TOLLWAY (THB)
max
min
2004 2005 2006 2007 2008 2009 2010 2011 2012
1.2% CAGR
1.5% CAGR
max
min
30 30 30 30 30
40 40 40 40 40 40 40 40 40 40 45 45 45 45 45
2.6% CAGR 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35
60 60 60 60
3.4% CAGR
48