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prepared by Investor Relations department BTS Group Holdings PCL

BTS Group Holdings PCL

2Q 2016 /17 EARNINGS PRESENTATION 1 0 N O V E M B E R 2 0 1 6


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.

2 2Q 2016/17 earnings presentation


Agenda

Section

1 BTSG 2Q 2016/17 FINANCIAL PERFORMANCE

Section

2 Section

3

BUSINESS UPDATES

BTSGIF 2Q 2016/17 FINANCIAL PERFORMANCE (separate presentation)

APPENDICES



2Q 2016/17 Financial Highlights

• Record Farebox revenue of THB 1,717mn up 7.2% YoY • Investment in new rolling stock (THB 1.2bn) •O&M revenue rose by 4.1% YoY • The Pink and the Yellow line bid submission

4 2Q 2016/17 earnings presentation Section 1: BTSG 2Q 2016/17 Financial Performance

PROFITABILITY BALANCE SHEET 6-MONTH CASH FLOW

• Net recurring profit (before MI) was THB 445mn, rising 6% YoY from higher interest income and lower share of net loss from associates/JVs

• Reported net profit (after MI) was THB 548mn, up by 16% YoY mainly from an increase in other recurring income as well as the recognition of some non-recurring gains

• Balance sheet strength: -THB 16.1bn cash & liquid investments* -Low leverage: Net D/E ratio at 0.26x

• Company Credit rating: A / STABLE from FITCH & TRIS

• Expansionary balance sheet: THB 22bn BTSC debenture issue

*Cash and liquid investments include cash bal. of THB 2.5bn, current investments of THB 3.1bn, long term investments of THB 10.5bn

MAJOR DEVELOPMENTS

MASS TRANSIT

• Media revenue grew substantially by 33% YoY from full quarterly MACO consolidation

• Increasing buildings portfolio (to 146 buildings from 118 buildings in 2Q 15/16)

• Established footprint overseas (KL transaction)

MEDIA

• The launch of the 5th BTS-SIRI JV condo (“The Base Rama 9”); 72% sold with 24% foreign participation • JV backlog as of 30 Sep 16 of THB 14bn • Share of loss in BTS-SIRI JVs narrowed. THB 864mn

revenue recognised from the Line Sukhumvit 71

PROPERTY

Expansion of Services revenue of 20% YoY due to • Services projects of BPS • Insurance commission revenue and content

advertising revenue from Rabbit Internet Group • ChefMan restaurant

SERVICES

All 4 BUs under investment stage: •Mass Transit: Rolling stock (BTSGIF & BTSC)

and E&M work (Green line extensions)

•Media: VGI (domestic and overseas)

• Property: THB 1,462mn net loans mainly to BTS-SIRI JVs and Bayswater

• Services: THB 750mn investment in Rabbit Line Pay


OPERATING REVENUE COMPARISON (YoY)

2Q 2016/17 Overview

INCOME STATEMENT (THB mn) 2Q 2016/17 2Q 2015/16 %YoY 1Q 2016/17 % QoQ 1H 2016/17 1H 2015/16 %YoY

Operating Revenues1 1,722.3 1,704.1 1.1% 1,553.5 10.9% 3,275.8 3,276.0 0.0%

Gross operating profits 996.5 1,001.9 (0.5)% 914.2 9.0% 1,910.7 1,923.0 (0.6)%

Operating EBITDA2 623.0 740.5 (15.9)% 636.1 (2.1)% 1,259.1 1,404.9 (10.4)%

Net recurring profit – before MI 445.4 421.0 5.8% 460.8 (3.4)% 906.2 944.3 (4.0)%

Accounting EBITDA 983.6 833.9 18.0% 990.7 (0.7)% 1,974.4 5,147.5 (61.6)%

Net income (loss)3 548.1 473.8 15.7% 548.0 0.0% 1,096.2 3,490.1 (75.2)%

Gross operating profit margin (%) 57.9% 58.8% 58.8% 58.3% 58.7%

Accounting EBITDA margin (%) 45.6% 42.3% 50.5% 48.2% 72.1%

Recurring net profit margin (%) 23.6% 25.3% 26.5% 25.0% 27.8%

Operating EBITDA margin (%) 36.2% 43.5% 40.9% 38.4% 42.9%

P&L SNAPSHOT

37%

Mass Transit

41%

Media

8%

Property

14%

Services

2Q 2016/17 OPERATING REVENUE BREAKDOWN

1 operating revenue of 4 BUs & share of net profit from BTSGIF 2 excluding interest income 3 to equity holders of the parent

5 2Q 2016/17 earnings presentation Section 1: BTSG 2Q 2016/17 Financial Performance

1,704 1,722

(9) 176 (188) 40

2Q 15/16 Mass transit Media Property Services 2Q 16/17

(1)%

33%

(THB mn)

(57)%

20%


2,365 2,524**

(2,178)*

(57)

2,394

Beginning cash(31/3/16)

CFO CFI CFF Ending cash(30/9/16)

6 Months Cash Flow Snapshot

6

* After tax (THB 368.6mn) and interest expense (THB 69.9mn) ** Excluding THB 13.6bn liquid investments

Increase in loans to related parties Net cash paid for other long-term

investment Investment in Rabbit Line Pay and

BTS-SIRI JVs Decrease in current investments Release of collateral (restricted

deposits) in relation to offshore loan Dividend income

Increase in Bills of Exchange payables Cash received from sale of VGI shares Dividend payment Cash paid for loans from financial

institutions BTSC last tranche debenture repayment

Increase in advance to contractors (E&M works)

Increase in advances to purchase of assets (first payment of rolling stocks)

(THB mn)

2Q 2016/17 earnings presentation Section 1: BTSG 2Q 2016/17 Financial Performance


Mass Transit

7

HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS

O&M revenue rose by 4% YoY to THB 411mn mainly from the contractually agreed increase in operating fee of the Sukhumvit extension and Silom extension

Share of net profit in BTSGIF decreased 11% YoY to THB 199mn from higher BTSGIF’s CAPEX, mainly from the first payment of new rolling stocks (THB 195mn)

Costs rose 10% YoY to THB 227mn largely due to higher payroll expenses.

Operating EBITDA margin dropped YoY to 65.8% from (68.9% in 2Q 2015/16)

OPERATING PERFORMANCE

MASS TRANSIT (THB mn)

2Q 2016/17

2Q 2015/16

%YoY 1Q

2016/17 %QoQ

1H 2016/17

1H 2015/16

%YoY

Revenue 642.3 650.8 (1.3)% 671.1 (4.3)% 1,313.4 1,286.8 2.1%

O&M revenue 410.9 394.9 4.1% 417.3 (1.5)% 828.2 788.9 5.0%

Share in BTSGIF 199.0 222.6 (10.6)% 221.2 (10.0)% 420.3 431.0 (2.5)%

Int income from train procurement

32.3 33.3 (3.0)% 32.6 (0.9)% 64.9 66.9 (3.0)%

Costs of revenue 227.3 207.4 9.6% 219.7 3.5% 446.9 416.1 7.4%

Gross profit 415.0 443.4 (6.4)% 451.4 (8.1)% 866.5 870.8 (0.5)%

Operating EBITDA 422.3 448.3 (5.8)% 458.4 (7.9)% 880.8 880.1 0.1%

Gross margin (%) 64.6% 68.1% 67.3% 66.0% 67.7%

Operating EBITDA margin (%)

65.8% 68.9% 68.3% 67.1% 68.4%

OPERATING REVENUE BREAKDOWN

64%

O&M

Share in BTSGIF

31%

2Q 2016/17

Int income from train procurement

5%


37

9

39

2

38

6

39

2

39

4

39

5

39

5

40

9

41

7

41

1

34

34

33

34

34

33

33

33

33

32

16

6

21

7

19

4

14

7

20

8

22

3

21

9

19

7

22

1

19

9

1Q14/15

2Q14/15

3Q14/15

4Q14/15

1Q15/16

2Q15/16

3Q15/16

4Q15/16

1Q16/17

2Q16/17

Share of NP in BTSGIF (THB mn)

Int income from train procurement (THB mn)

O&M (THB mn)

IR Quarterly Presentation 4Q 1213_Draft1.xlsx


Media

8


Overall Media revenue up 33% YoY to THB 703mn mainly from the full quarter effect of the consolidation of MACO’s Outdoor media segment

BTS-related media revenue rose by 1% YoY to THB 474mn despite the slowdown of the overall advertising industry

Outdoor & Office Buildings and Other Media revenue grew THB 169mn to THB 230mn mainly from (i) the full quarter effect of the consolidation of MACO (ii) the increase in the number of office buildings, which grew to

146 buildings (118 buildings in 2Q 2015/16) Operating EBITDA margin dropped YoY to 51.0% (63.2% in 2Q

2015/16)

33%

Outdoor & Office Buildings and Others

67%

BTS - Related

MEDIA (THB mn)

2Q 2016/17

2Q 2015/16

%YoY 1Q

2016/17 %QoQ

1H 2016/17

1H 2015/16

%YoY

Operating revenue 703.0 527.4 33.3% 541.7 29.8% 1,244.7 1,066.6 16.7%

Costs of revenue 223.6 147.3 51.9% 160.4 39.5% 384.0 324.8 18.2%

Gross profit 479.4 380.2 26.1% 381.3 25.7% 860.7 741.8 16.0%

Operating EBITDA 358.4 333.2 7.6% 327.1 232.6% 685.5 650.4 5.4%

Gross margin (%) 68.2% 72.1% 70.4% 69.1% 69.5%


51.0% 63.2% 60.4% 55.1% 61.0%

2Q 2016/17




75

4

78

7

78

0

60

5

53

9

52

7

51

2

49

1

54

2

70

3

1Q14/15

2Q14/15

3Q14/15

4Q14/15

1Q15/16

2Q15/16

3Q15/16

4Q15/16

1Q16/17

2Q16/17



31

9

33

1

34

1

36

4

23

3

33

1

16

1

17

1

14

2

14

2

1,4

11

9,4

69

1Q14/15

2Q14/15

3Q14/15

4Q14/15

1Q15/16

2Q15/16

3Q15/16

4Q15/16

1Q16/17

2Q16/17

Operating revenue Proceeds from land sale

Sale of assets to U City

Property

9


Operating revenue was THB 142mn, decreasing 57% YoY from the reduction in residential property

Residential property revenue was THB 7mn, down 97% YoY mainly due to no remaining backlog of Abstracts Phahonyothin Park (Tower A) to be transferred (2Q 2015/16: transferred 62 units)

Commercial property revenue increased 14% YoY to THB 136mn mainly from an increase in revenue from U Sathorn Hotel and higher rental and services revenue

Operating costs decreased by 57% YoY to THB 89mn. Operating EBITDA margin decreased to -3.4% (13.9% in 2Q

2015/16)

Sale of Mo Chit land

5%

Residential Commercial

& Others

95%


PROPERTY (THB mn)

2Q 2016/17

2Q 2015/16

%YoY 1Q

2016/17 %QoQ

1H 2016/17

1H 2015/16

%YoY

Operating Revenue 142.3 330.7 (57.0)% 141.9 0.2% 284.2 563.8 (49.6)%

Costs of revenue 88.5 204.6 (56.8)% 90.9 (2.7)% 179.4 344.6 (47.9)%

Gross profit 53.8 126.2 (57.3)% 51.0 5.5% 104.8 219.1 (52.2)%

Operating EBITDA (4.8) 46.0 (110.5)% (2.9) 66.7% (7.7) 59.9 (112.9)%

Gross margin (%) 37.8% 38.1% 35.9% 36.9% 38.9%


(3.4)% 13.9% (2.0)% (2.7)% 10.6%


2Q 2016/17




Services

10


Revenue Revenue increased by 20% YoY to THB 235mn from (i) an increase in revenues of THB 29mn from BPS projects, (ii) an increase in revenue of THB 20mn from Rabbit Internet Group and (iii) an increase in revenue from ChefMan Restaurants of THB 16mn

Costs & SGA Costs increased by 30% YoY to THB 186mn. SG&A rose by 57% YoY to THB 82mn. Key costs and SG&A items were mainly from (i) staff costs and (ii) marketing expenses of Rabbit Internet Group and BSSH

Operating EBITDA margin decreased to -2.9% (12.1% in 2Q 2015/16)

49%

ChefMan

BSS

29%

OPERATING REVENUE BREAKDOWN OPERATING PERFORMANCE

SERVICES (THB MN)

2Q 2016/17

2Q 2015/16

%YoY 1Q

2016/17 %QoQ

1H 2016/17

1H 2015/16

%YoY

Revenue 234.8 195.1 20.3% 198.7 18.1% 433.5 358.8 20.8%

Costs of revenue 186.4 142.9 30.4% 168.4 10.7% 354.8 267.5 32.6%

Gross profit 48.3 52.2 (7.3)% 30.4 59.2% 78.7 91.3 (13.8)%

Operating EBITDA (6.8) 23.6 (128.7)% (27.6) (75.4)% (34.4) 42.4 (181.3)%

Gross margin (%) 20.6% 26.7% 15.3% 18.2% 25.4%


(2.9)% 12.1% (13.9)% (7.9)% 11.8%

2Q 2016/17 BPS

13%

Rabbit Internet Group

9%


12

6

14

4

13

8

13

9

16

4

19

5

19

0

19

3

19

9

23

5

1Q14/15

2Q14/15

3Q14/15

4Q14/15

1Q15/16

2Q15/16

3Q15/16

4Q15/16

1Q16/17

2Q16/17



46,917 45,976

5,796 6,058

12,455 17,448

31-Mar-16 30-Sep-16

Total current liabilities Total non-current liabilities

Total shareholders' equity

65,169 69,483

55,002 59,414

10,167 10,069

31-Mar-16 30-Sep-16

Total current assets

Total non-current assets

65,169 69,483 Cash

31 Mar 16: THB 2.36bn

30 Sep 16: THB 2.52bn

Current Investments

31 Mar 16: THB 3.27bn

30 Sep 16: THB 3.12bn

Long-Term Investments

31 Mar 16: THB 9.56bn

30 Sep 16: THB 10.47bn

Restricted Deposits

31 Mar 16: THB 1.24bn

30 Sep 16: -

Gross Debt

31 Mar 16: THB 9.28bn

30 Sep 16: THB 14.45bn

Net Debt

31 Mar 16: THB 6.92bn

30 Sep 16: THB 11.93bn

*****

Issued Ordinary Shares

31 Mar 16: 11,929.3mn

30 Sep 16: 11,934.9mn

Balance Sheet

84%

16% 14%

86%

25%

66%

9%

72%

19%

9%

2Q 2016/17: 0.31x 2Q 2015/16: 0.06x

Gross Debt to Equity

11

2Q 2016/17: 0.26x 2Q 2015/16: 0.03x

Net Debt to Equity

2Q 2016/17: 4.68x 2Q 2015/16: 0.59x

Net Debt to Operating EBITDA

2Q 2016/17: 6.95x 2Q 2015/16: 10.65x

Interest Coverage

2Q 2016/17: 0.58x 2Q 2015/16: 1.91x

Current Ratio

ASSET BREAKDOWN (THB MN)

LIABILITIES AND EQUITY BREAKDOWN (THB MN)

KEY RATIOS



Agenda

Section


Section

2 Section

3

BUSINESS UPDATES


APPENDICES



MASS TRANSIT UPDATE Quarterly Ridership in Core Network

13

HISTORICAL AVERAGE FARE & % GROWTH (YOY) HISTORICAL RIDERSHIP & % GROWTH (YOY)

New quarterly ridership record = 61.7mn trips, +5.5% YoY, +9.3% QoQ

Quarterly average weekday ridership = 748,459, +6.0% YoY

Quarterly average fare = THB 27.8 per trip, +1.6% YoY, -1.0% QoQ

Net farebox revenue = THB 1,717mn, 7.2% YoY, 8.2% QoQ

• Ridership: increasing 5.5% YoY, mainly from organic growth and last

year’s low base effect from the bombing at Ratchaprasong

• Fare: increasing 1.6% YoY from cancellation of promotional prices for

store-valued card since January 2016

2Q 2016/17 earnings presentation Section 2: Business Updates

58.5 59.1 59.1

56.5

61.7

7.1% 4.7% 4.8%

1.0% 5.5%

4.7% 1.0% 0.0%

-4.4%

9.3%

-50.0%

0.0 %

53.0

58.0

63.0

2Q 15/16 3Q 15/16 4Q 15/16 1Q 16/17 2Q 16/17

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

27.4

27.8 27.9 28.1

27.8

2.8% 3.5% 4.0% 4.6%

1.6%

2.0% 1.6% 0.4% 0.6% -1.0%

25. 0

2Q 15/16 3Q 15/16 4Q 15/16 1Q 16/17 2Q 16/17

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

Average Fare Growth (% QoQ)


MASS TRANSIT UPDATE Timeline and Progress: Green Line South/North Extensions

14

MAR 2012 Civil works start

MAR 2016 MOU between MRTA & BMA signed

END 2016 Expected O&M contract signed

LATE 2018 Targeted full operation

GREEN SOUTH (12.8km, 9 stations)

GREEN NORTH (18.4km, 16 stations)

MAR 2017 Expected 1st station (Samrong – E15) operation

MID 2015 Civil works start

MAR 2016 MOU between MRTA & BMA signed

END 2016 Expected O&M contract signed

2020 Targeted full operation

Source: MRTA, the Company

EARLY 2018 Expected 1st station operation

FUNDING REQUIREMENTS IN GREEN LINE EXTENSIONS

PROCUREMENT OF 184 CARRIAGES, TOTAL VALUE ≈ 10bn

98%

Green South

14%

Green North

Civil work Construction (as of September 2016)

ROLLING STOCKS FROM DELIVERY SCHEDULE

22x4 trains 7x4 trains for existing network 15x4 trains for green line

south extension

Siemens by FY 18/19

24x4 trains 21x4 trains for green line

north extension 3x4 trains – spare trains for extensions

CRRC by FY 19/20

E&M SALES & INSTALLATION, TOTAL VALUE ≈ 19BN

• On 28 Jun 2016, BTSC signed the contract with Krungthep Thanakom (KT) for Electrical & Mechanical (E&M) provision and installation

• KT will repay the costs in a lump sum after four years, although KT also has an option to defer payment to be in six years instead of four

• On 30 Jun 2016, BTSC signed the contract with Suppliers Consortium (“Bombardier” is included) for supplying and installing the E&M Systems on Green Line extensions



MASS TRANSIT UPDATE Timeline and Progress: The Pink and The Yellow Line

15

Source: MRTA, the Company, Thaigov website


6 JUL – 5 AUG 2016 RFP is available for sale

17 NOV 2016 Bid envelope opening

2020 Targeted operation year

7 NOV 2016 The tender submission

April 2017 Expect contract to be awarded and signed

• 7 November 2016: “BSR Joint Venture”, a Joint Venture between BTS Group, Sino-Thai Engineering & Construction PCL (“STEC”) and Ratchaburi Electricity Generating Holding PCL (“RATCH”), submitted a tender offer of the Pink line and the Yellow line (total project value for both lines of THB 105.5bn) • PPP net cost model (MRTA is responsible for land expropriation costs, the

winner will invest in civil work, E&M including rolling stocks and operation and maintenance services) • Concession period: 33 years and 3 months (3 years and 3 months of

construction, 30 years of operation and maintenance)

PINK (34.5 KM, 30 STATIONS) YELLOW (30.4KM, 23 STATIONS)


MEDIA UPDATE Expanding Our Transit Media Footprint in Malaysia

16 2Q 2016/17 earnings presentation Section 2: Business Updates

VGI Puncak Berlian

• Wholly-owned subsidiary of Redberry Sdn Bhd, Malaysia’s No. 2 OOH media company:-

• Diversified media portfolio (transit, in-store, cinema and outdoor)

• Largest transit advertising assets with exclusive concessionaires

Utusan Airtime Ikatan Asli

• A subsidiary of Utusan Media Sales Sdn Bhd

• Exclusive marketing agent for national broadcaster RTM

• Manages advertising for 2 national TV channels

• Manages 6 national and 26 regional radio stations

• 18 years of experience in advertising business

• Outdoor Media Specialists with key profile clients including Celcom, TM and SP Setia

• No. 1 in Transit media • Exclusive transit contract until

2029 • No. 1 in Office building media • Diversified media portfolio

(transit, office, outdoor, aviation, online)

• Highest margin OOH media company in Thailand

TITANIUM COMPASS

19% 51% 20% 10%

• To establish footprint in overseas market by using our expertise in rail mass transit media

• Total initial investment capital of THB 8.83mn (THB 1.68mn by VGI)

• VGI has option to increase stake up to 30% in Titanium Compass

• Rights to manage advertising across 31 stations and 58 trains

• 10 years contract length (Dec 2016 – Dec 2026)

• Concession agreement is expected to finalise at the end of November 2016

INVESTMENT HIGHLIGHTS PROJECT MASS RAPID TRANSIT (SBK LINE)

Expected commencement: 1st phase - end 2016, full operation: mid 2017


MEDIA UPDATE Acquisition of Rabbit

17

7 November 2016: VGI’s Extraordinary General Meeting approved the acquisition of 90% in BSS from BTSC and 90% in BSSH from BTSG.

Investment cost of THB 1,956.5mn to acquire both BSS and BSSH

90% of BSS from BTSC

Number of shares: 3,600,000 shares

Price: THB 184.39 per share

Investment cost: THB 663.8mn

90% of BSSH from BTSG

Number of shares: 10,800,000 shares

Price: THB 119.69 per share

Investment cost: THB 1,292.7mn

Source of funds: CFO and/or credit facilities

PRE COMPANY STRUCTURE POST COMPANY STRUCTURE

100%

97.5% 90% 10%

21.3% 51%

60%

51%

25%

80%

49%

49%

51%

51%

BTSG

VGI

Bangkok Bank

• 41.0% Kanjanapas Family • 59.0% BTSG’s Minorities

BSSH

BTSC BSS

ATS

BPS

Rabbit Internet

Rabbit Pay

Ask Broker

Ask Direct

• 0.5% Kanjanapas Family • 27.2% Public

BTSG

VGI

BTSC

BSSH

BSS

ATS

BPS

Rabbit Internet

Rabbit Pay

Ask Broker

Ask Direct

97.5%

21.3%

60%

90%

90%

25%

80%

51%

Bangkok Bank 10%

10%

49%

49%

51%

51%

Rabbit Line Pay 50%

TIMELINE OF ACQUISITION AND CONSOLIDATION TRANSACTION SUMMARY


22 AUG 16: VGI’s BOD approved the acquisition of 90% in BSS

and BSSH (“Rabbit”), which subject to EGM on 7 November 2016

7 NOV 16: EGM approved the acquisition transaction of Rabbit

31 MAR 17: To complete the transaction

1 APR 17: To start consolidating financial statement


MEDIA UPDATE IFA’s Estimation Valuation Summary


657.9

1,180.0 345.9

570.4

112.6 133.4 17.7

745.7

1,374.2

289.2 150.9

0

500

1,000

1,500

2,000

2,500

3,000

BSSH

Rabbit’s value (THB mn): 1,837.9 – 2,119.8 Transaction value (THB mn): 1,956.5

THB mn

UP

SID

E

BSS

MET

HO

DO

LOG

Y

DCF SOTP

BSSH RPS RI ATS BPS

Cash & cash equiv. + Current invest. + S/T loan

Book Value Price to sales DDM BV/ share – gain after tax from sale of BPS

Total BSSH BSSH

Additional value (THB mn)

Data driven media 15% of BTS’s unoccupied media and innovative media driven by Rabbit’s data ~1,100.01

BSS Extensions and new lines: Light Green, LRT, Grey, Pink, Yellow ~646.5 – 734.3

ATS 1X larger potential outstanding loan ~259.3 – 276.8

Additional upside ~2,000 1 10YRS NPV


Land Bank THB 3.6bn

Bayswater JV

THB 4.0bn

Residential

THB 0.3bn

PROPERTY UPDATE

PROPERTY BOOK VALUE BREAKDOWN

COMMERCIAL PROPERTY

COMMERCIAL PROPERTY REVENUE BREAKDOWN

HOTEL REVPAR AND OCCUPANCY

19

HISTORICAL HOTEL OCCUPANCY

Others 27%

U-Hotels 41%

Thana City Golf 32%

Commercial THB 3.5bn

2Q 2016/17 Commercial

Property Revenue:

THB 136mn

U City THB 7.3bn

Total Book Value as of 30 Sep 16:

THB 19.3bn


78.7% 75.9%

78.3% 74.4%

80.5% 81.8% 82.9%

76.3%

83.4%

2Q14/15

3Q14/15

4Q14/15

1Q15/16

2Q15/16

3Q15/16

4Q15/16

1Q16/17

2Q16/17

2,6

16

1,4

70

2,2

70

2,2

27

88.6%

79.0% 82.3% 83.4%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

-

500

1,000

1,500

2,000

2,500

3,000

U Chiang Mai U Inchantree U Sathorn Blended

RevPar (THB per night) Occupancy Rate

2%

18%

19%

3%

38%

21%

BTS-Sansiri JV THB 0.6bn


PROPERTY UPDATE BTS-Sansiri Projects Launched: The Base Garden Rama 9

Distance from mass transit station

700m from ARL Ramkamhaeng

Project value THB 2.2bn

No. of units 639 (36 floors)

Avg. selling price / sqm THB 105k

Foreign participation 24%

Land Area (Rai) 3.6

20

Intl. Roadshow / Domestic Presales

Construction Starts

Construction Completion

Transfer Starts

Transfer Completion

Sep 2016

Sep 2016

May 2019

May 2019

Sep 2019

EXPECTED TIMELINE

THE BASE GARDEN RAMA 9



1,055

14,074

5,702

5,795

1,522

FY 16/17E FY 17/18E FY 18/19E FY 19/20E BTS-SIRI JVPresalesBacklog

Project Name Presale Period

Project Value

(THB mn) Units

Avg. Price per sqm

(THB) Sold Construction

Progress*

Est. Transfer

Start

Est. Transfer

Completion

Foreign Participation

THE LINE Jatujak – Mochit May 2015 5,727 841 179k 100% 48% Oct 2017 Dec 2017 14%

THE LINE Sukhumvit 71 Aug 2015 1,990 291 169k; fully furnished

100% 96% Oct 2016 Dec 2016 48%

THE LINE Ratchathewi Oct 2015 2,925 231 266k 100% 18% May 2018 Sep 2018 15%

THE LINE Asoke-Ratchada Jun 2016 2,983 473 180k; fully furnished

100% 0% Apr 2019 Sep 2019 36%

THE BASE Garden Rama 9 Sep 2016 2,228 639 105k 72% 0% May 2019 Sep 2019 24%

Total/Weighted Average 15,853 2,475 183k 96% 24%

Residential Property Projects under Development & Development Pipeline

ACTIVE RESIDENTIAL PROJECTS UNDER SIRI JV

TOTAL PRESALES BACKLOG (THB mn)

Equity method needs to be applied to joint venture transactions

Calculated based on BTS Group’s fiscal year

* As of Sep 2016

2016 RESIDENTIAL PROPERTY LAUNCH PLAN

Launch 6 Projects with total project value of THB 25bn

Projects Launched so far this year:



3,300

300

3,700

430

2,850

200

1,200

180

550

Mass Transit Media Property Services BTS Group

440

FY 2016/17 BTS Group Targets and CAPEX (revised)

22

BTS GROUP REVISED CAPEX/ FINANCING (THB mn)

FY 2016/17 TOTAL CAPEX/FINANCING OF THB 12.8BN**

*Consolidates MACO from Jun 2016 onwards **Excludes real estate development cost for Property business

2016/17 BTSGIF CAPEX (REVISED) is expected to be approx. THB 360mn (not included in BTS Group CAPEX)

BTS GROUP TARGETS

6,330

500

Rolling stocks

Outdoor

Invest in BTS-SIRI JVs (gross)

Land acquisition & others

200

5,400

• 5-6% Ridership Growth

• 1% Average Fare Increase

• 3-4% O&M Revenue Growth

MASS TRANSIT

MEDIA*

• 30-40% Revenue Growth

PROPERTY

• THB 620mn Commercial Property Revenue

• THB 60mn Residential Property Revenue

• THB (200)mn Share of Net Loss from BTS-SIRI JVs

SERVICES

• 6.5mn Rabbit Cards in circulation • Reach to 2,000 retail shops with 4,500 readers • 3mn Rabbit Rewards Membership

E&M

Thana City Renovation

10



Agenda

Section


Section

2 Section

3

BUSINESS UPDATES


APPENDICES



Breakdown of Share of Income /(Loss) from Investments

in JVs and Associates

24 2Q 2016/17 earnings presentation Appendix: Breakdown of Share of Income (Loss) from Investments and JVs

Per Financial Statements (THB mn)

2Q 2015/16 3Q 2015/16 4Q 2015/16 1Q 2016/17 2Q 2016/17

Share of loss from investments in JVs (87.8) (70.8) (94.1) (94.3) (66.3)

Share of loss from investments in associates 168.6 199.6 225.9 193.9 175.5

Total 80.8 128.8 131.8 99.6 109.1

Share on Investments in Associates (THB mn)

2Q 2015/16 2Q 2016/17 Remarks

Absolute Hotel

Services (AHS) 2.4 1.5

BTSGIF 222.6 199.0 Advance payment of

rolling stock

MACO and Aero

Media 11.2 0.1

Full quarter of

MACO’s consolidation

U CITY (67.7) (26.6) No unrealised loss

from mark to market

trade securities

MACO’s associates - 1.5

Total 168.5 175.5

Share on Investments in Joint Ventures (THB mn)

2Q 2015/16 2Q 2016/17 Remarks

ATS (AEON-Rabbit) - 3.4

Bayswater - (32.0) Interest expense

to BTS Group

BTS-SIRI JV projects (87.8) (28.3) Transferred 128

units of The Line

Sukhumvit 71

Rabbit LINE Pay - (9.3)

Total (87.8) (66.3)


BTS Group: A Key Participant in Mass Transit Development Focused on 7 lines; total length of 137.7km

2Q 2016/17 earnings presentation Appendix: Target of New Mass Transit Lines

25

LINE ROUTE AUTHORISING

BODY TARGETED

OPERATE YEAR CONSTRUCTION

PROGRESS DISTANCE (KM)

BLUE HUA LAMPHONG - BANG KHAE MRTA 2019 UNDER CONSTRUCTION 14.0

BLUE BANG SUE - THA PRA MRTA 2019 UNDER CONSTRUCTION 13.0

DARK RED BANG SUE - RANGSIT SRT 2021 UNDER CONSTRUCTION 26.3

DARK GREEN SOUTH

BEARING - SAMUT PRAKARN BMA 2018 UNDER CONSTRUCTION 12.8

DARK GREEN NORTH

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

LIGHT GREEN BANG WA - BOROMMARATCHACHONNANI BMA 2019 7.0

LRT BANG NA - SUVARNABHUMI BMA 2021 18.3

GREY (PHASE I) WATCHARAPHON – THONG LO BMA 2021 16.3

PINK KHAE RAI – PAK GRED – MIN BURI MRTA 2020 34.5

YELLOW LAD PRAO – SAM RONG MRTA 2020 30.4

DARK GREEN SAMUT PRAKARN - BANGPU MRTA 2031 7.0

ORANGE TALING CHAN – MIN BURI MRTA 2022 39.6

LIGHT RED BANG SUE - PHAYATHAI – MAKKASAN SRT 2021 9.0

LIGHT RED MAKKASAN – HUA MARK SRT 2021 10.0

DARK RED RANGSIT – THAMMASART UNIVERSITY SRT 2026 10.0

DARK RED BANG SUE - HUA LAMPHONG SRT 2026 6.5

TOTAL (KM) 273.1

273.1KM ONGOING PROJECTS PRIORITISED BY THE GOVERNMENT, 84.5KM UNDER CONSTRUCTION

CORE AND EXTENSIONS TO OUR CURRENT LINES LINES CONNECTING TO OUR LINES

137.7km

Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, State Railway of Thailand, Ministry of Transport, Bangkok Expressway and Metro Public Company Limited (BEM), BTS Group Holdings Public Company Limited (BTS)


BTS Group: A Key Participant in Mass Transit Development BTSG well-positioned for new contracts

2Q 2016/17 earnings presentation Appendix: Target of New Mass Transit Lines

26

PINK LINE • Khae Rai – Min Buri (34.5km) • Bidding submission: Nov 2016 • Targeted contract signed: Apr 2017 • Target operation: 2020

DARK GREEN NORTH LINE • Mo Chit – Saphan Mai – Khu Khot (18.4km) • Status: under construction • Expected O&M award: 2016 • Target operation: 2020

GREY LINE • Watcharaphol – Rama 9 Bridge (26.0km) • Awaiting EIA approval • Expected bidding (Phase I): 2017 • Target operation (Phase I): 2021

Phase I: Watcharaphol – Thong Lo (16.3km)

LIGHT RAIL TRANSIT (LRT) • Bang Na – Suvarnabhumi (18.3km) • Expected bidding: 2017 • Target operation: 2021

DARK GREEN SOUTH LINE • Bearing – Samut Prakarn (12.8km) • Status: under construction • Expected O&M award: 2016 • Target operation: Late 2018

Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, Ministry of Transport, the Company

LIGHT GREEN LINE • Bang Wa – Borommaratchachonnani

(7.0km) • Expected O&M award: 2017 • Target operation: 2019

YELLOW LINE • Lad Prao– Sam Rong (30.4km) • Bidding Submission: Nov 2016 • Targeted contract signed: Apr 2017 • Target operation: 2020


Mass Transit Update LRT, Grey and Light Green Line

27 2Q 2016/17 earnings presentation Appendix: Target of New Mass Transit Lines

CURRENT STATUS:

The route already includes in the master plan and approved by CMLT/BMC Awaiting EIA approval and cabinet’s acknowledgment

2017 Expected bidding

2021 Target operation year


LRT (18.3km) GREY PHASE I (26.0km) LIGHT GREEN (7km)


2017 Expected O&M award

CURRENT STATUS:

The route already includes in the master plan and approved by CMLT Awaiting EIA approval and cabinet’s acknowledgment

2017 Expected bidding

CURRENT STATUS:

Awaiting to be included in the new master plan

Awaiting EIA approval, BMC approval (CMLT already approved in the principle)


Mass Transit Funding Requirements BTS Pipeline

28 2Q 2016/17 earnings presentation Appendix: Target of New Mass Transit Lines

20,135 22,354

42,489

8,598 10,760

26,727 24,251

8,616 11,750

90,702

3,572 4,940

2,096

10,608

Dark Green South Dark Green North Pink Yellow LRT Light Green Grey Total

Rolling Stock E&M Civil work

KEY ASSUMPTIONS

Total CAPEX/financing for expected lines = THB 144bn

with D/E Ratio = 2.5 : 1

Total equity required by BTS Group = THB 41bn*

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

143,799

46,605** 46,862** 12.8km 18.4km

34.5km 30.4km

7.0km 16.3km

137.7km

18.3km

*If assume 50:50 JV, equity required by BTS Group for pink and yellow lines will be THB 28bn ** Excludes approximately THB 6bn in each line for land expropriation and other costs which are the costs invested by the government

12,170 15,700

PROJECTED CAPEX/FINANCING BREAKDOWN OF EXPECTED FUTURE LINES (THB mn)


BTS Group Business Update BTSC Debenture Summary

29

3 November 2016: BTSC was approved by the Securities and Exchange Commission, Thailand (SEC) to issue up to THB 22,000mn senior unsecured debentures. The bonds will be issued in four tranches due in 2019, 2021, 2023, and 2026.

Amount up to THB 22bn

Tenor 3, 5, 7, 10 years (NC5)

Rating A / Stable by Fitch and TRIS

Rationale Purchase new rolling stocks and electrical and mechanical system (E&M) for the Green Line North & South extension projects

Subscription Period 7 – 9 November 2016

Issuance Date 10 November 2016

Tenor Amount up to Coupon Rate

3-year THB 5.5bn 2.46%



10-year (NC5) THB 10.2bn 3.87%

Total THB 22bn 3.31% (average)

2Q 2016/17 earnings presentation Appendix: BTSC Debenture Summary



THANK YOU

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