prepared by Investor Relations department BTS Group Holdings PCL
GENERAL PRESENTATION OCTOBER 2015
BTS Group Holdings PCL
BTS Group General Presentation
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: [email protected] Website: www.btsgroup.co.th
2
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: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
3
prepared by Investor Relations department BTS Group Holdings PCL
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)
4
prepared by Investor Relations department BTS Group Holdings PCL
100%
50%
50%
50%
50%
50%
50%
50%
100%
100%
CARROT REWARDS CO., LTD. 100%
70%
51%
100%
100%
100%
100% TANAYONG HONG KONG LTD.
LITTLE CORNER CO., LTD.
MAN KITCHEN CO., LTD.
100%
100%
24.96%
50%
Shareholding Structure as of 9 October 2015
1 Information based on the book closure date as at 12 Jun 15 with total issued shares = 11,919.3mn shares 2 BTSG holds 74.3% of VGI indirectly and directly
OTHERS
2.5%, 407.7 mn shares
BTSGIF
33.3%
KANJANAPAS FAMILY OTHERS
BTSC
MASS TRANSIT MEDIA PROPERTY SERVICES
INSTITUTIONAL INVESTORS
23.3%2
41.0%1 31.6%1 27.4%1
BTS GROUP
97.46%
VGI GLOBAL MEDIA PCL
ABSOLUTE HOTEL SERVICES CO., LTD.
BANGKOK SMARTCARD SYSTEM CO., LTD. 90%
51.0%
VGI ADVERTISING MEDIA CO., LTD.
888 MEDIA CO., LTD.
VGI ADVERTISING CHINA CO., LTD.
MASTER AD PCL
100%
100%
100%
100%
DNAL CO., LTD.
TANAYONG INTERNATIONAL LTD.
ABSOLUTE HOTEL SERVICES HONG KONG LIMITED
75.47%
100%
50%
100%
100%
100%
100%
Listed entities
12.26%
5
AERO MEDIA GROUP CO., LTD.
POINT OF VIEW (POV) MEDIA GROUP CO., LTD.
20%
BTS LAND CO., LTD.
PRANNAKIRI ASSETS CO., LTD.
100%
BAYSWATER CO., LTD.
HHT CONSTRUCTION CO., LTD.
75%
BTS SANSIRI HOLDING ONE LTD.
35.64%
Subsidiaries
Associates
BTS Group General Presentation Section 1: BTS Group Holdings PCL
BTS SANSIRI HOLDING TWO LTD.
BANGKOK PAYMENT SOLUTIONS CO., LTD.
PRIMARY KITCHEN CO., LTD.
60%
SIAM PAGING AND COMMUNICATION
CO., LTD.
MUANGTHONG ASSETS CO., LTD.
TANAYONG PROPERTY MANAGEMENT CO., LTD.
TANAYONG FOOD & BEVERAGE CO., LTD.
U CITY PCL
YONGSU CO., LTD.
MAK8 CO., LTD.
THANA CITY GOLF & SPORTS CLUB CO., LTD.
MIDAS GLOBAL MEDIA CO., LTD.
51% ATS RABBIT SPECIAL PURPOSE
VEHICLE CO., LTD.
BSS HOLDINGS CO., LTD.
18.41%
BTS SANSIRI HOLDING THREE LTD.
BTS SANSIRI HOLDING FOUR LTD.
BTS SANSIRI HOLDING FIVE LTD.
50%
BTS SANSIRI HOLDING SIX LTD.
50%
BTS SANSIRI HOLDING SEVEN LTD.
NUVO LINE AGENCY CO., LTD.
UNICORN ENTERPRISE CO., LTD.
KEYSTONE ESTATE CO., LTD.
100%
50%
BTS SANSIRI HOLDING NINE LTD.
BTS SANSIRI HOLDING EIGHT LTD.
prepared by Investor Relations department BTS Group Holdings PCL
121
399 548
164
FY 12/13 FY 13/14 FY 14/15 1Q 15/16
1,445
2,934
1,355
233
FY 12/13 FY 13/14 FY 14/15 1Q 15/16
2,795 3,121 2,926
539
FY 12/13 FY 13/14 FY 14/15 1Q 15/16
6,016
2,077 2,274 602*
FY 12/13 FY 13/14 FY 14/15 1Q 15/16
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) VGI discontinued operations in Modern Trade Media effective 1Q 15/16 (3) Services revenue excludes revenue of HHT Construction (Thailand) Co., Ltd. as it is consolidated as cost of project under Property business
Historical operating revenues(1)
Media Revenue(2) (THB mn)
Property Revenue (THB mn)
Services Revenue(3) (THB mn)
Mass Transit Revenue (THB mn)
39%
35%
15%
11%
Revenue contribution
32%
41%
19%
8%
FY 14/15 1Q 15/16
FY 14/15 1Q 15/16
FY 14/15 1Q 15/16
FY 14/15 1Q 15/16
6
*O&M Revenue: THB 394mn; Share in BTSGIF: THB 208mn
prepared by Investor Relations department BTS Group Holdings PCL
THB (mn) USD (mn)*
OPERATING REVENUE 7,102 218
OPERATING EBITDA 2,836 87
NET INCOME** 2,944 90
TOTAL ASSETS 66,811 2,053
BTSG at a Glance
BTS Group General Presentation Section 1: BTS Group Holdings PCL
KEY FIGURES (as of 31 Mar 2015)
EMPLOYEES (as of 31 Mar 2015)
PROGRESSIVE DIVIDEND POLICY
SHARE INFORMATION (as of 31 Mar 2015)
STOCK CODE BTS
OUTSTANDING SHARES (MN SHARES) 11,919.3
MARKET CAPITALISATION (THB MN) 109,061.1
MARKET CAPITALISATION (USD MN) 3,350.8
AVERAGE DAILY TRADED VALUE (THB MN) 445.4
AVERAGE DAILY TRADED VALUE (USD MN) 13.7
*Source: Bank of Thailand, based on weighted-average Interbank Exchange Rate of USD 1 = THB 32.548 as of 28 May 2015
**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)
7
MASS TRANSIT 2,039 MEDIA 466
PROPERTY 918 SERVICES 505
BTS GROUP HOLDINGS 72
TOTAL 4,000
prepared by Investor Relations department BTS Group Holdings PCL
Investment Highlights
BTS Group General Presentation Section 1: BTS Group Holdings PCL
“BENEFICIARY FROM MASS TRANSIT DEVELOPMENT AND MASS TRANSIT EXPANSION ACROSS ALL OF OUR BUSINESS UNITS”
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 23.75bn
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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prepared by Investor Relations department BTS Group Holdings PCL
1,329
1,235 1,750
2012/13 2013/14 2014/15
1,030
2,563 2,820
2012/13 2013/14 2014/15
(THB mn)
NET RECURRING PROFIT
10.0%
Key Developments 2014/15
BTS Group General Presentation Section 1: BTS Group Holdings PCL
9
CAPEX
41.7% (THB mn)
DIVIDEND YIELD / DIVIDEND PAYMENT
Dividend yield of 6.4% (THB mn)
4,359
7,073 7,095
2012/13 2013/14 2014/15
Reduction in finance costs
7.4% 6.4%
4.8%
Committed dividend payment (at least THB 21bn over 3 years)
SHARE REPURCHASE PROGRAMME
In Aug 2014, BoD approved a share repurchase programme • not exceeding THB 6bn (or 5% of total issued shares) • Repurchase period: 25 Aug 2014 until 24 Feb 2015 • In conclusion: the Company repurchased 0.8% of total
issued shares (avg price = THB 9.65 / share), totaling THB 925.2mn
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: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
10
prepared by Investor Relations department BTS Group Holdings PCL
THB 1.5bn
> THB 14bn
2014 2020 TARGET
12.8 km
121.6 km
2014 2020 TARGET
≈9.5x
≈9.5x
11
BTS Group Vision 2020
BTS Group General Presentation Section 2.1: Mass Transit Business
“THAILAND’S LEADING MASS TRANSIT DEVELOPER AND OPERATOR”
≈9.5X BKK MASS TRANSIT EXTENSION COVERAGE
≈9.5X MASS TRANSIT O&M REVENUE
O&M = Operation and Maintenance
MASS TRANSIT RAIL LENGTH TARGETS (KM)
74.2 79.5 94.8 100.1
461.3
515.3
31.0 31.0 31.0 36.3
145.1
2010 2011 2012 2013 2019T 2020T 2029T
Target Network Length in km
BTS Target Distance in km
T = Target
*
*Source: Office of Transport and Traffic Policy and Planning
prepared by Investor Relations department BTS Group Holdings PCL
12
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 15-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) 15 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
13
Bangkok Rail Mass Transit Master Plan 515.3 km* by 2029, 42.4% share of Mass Transit commute by 2032 Sources: Office of Transport and Traffic Policy and Planning, Bangkok Metropolitan Administration
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
*Includes MRTA and BMA projects
prepared by Investor Relations department BTS Group Holdings PCL
Existing Bangkok Mass Transit Network Immature network, 84.8km as of 2015
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
AIRPORT LINK (RED LINE)
PHAYATHAI – SUVARNABHUMI
28.5 AUG 10
DARK GREEN (EXTENSION)
ON NUT – BEARING 5.3 AUG 11
LIGHT GREEN (EXTENSION)
WONGWIAN YAI – BANG WA
5.3 DEC 13
EXISTING LINES - 84.8KM; 60 STATIONS
CORE NETWORK
3 RAIL MASS TRANSIT OPERATORS
BTS: 36.3km (SkyTrain)
BMCL: 20.0km (Underground)
SRT: 28.5km (Airport Rail Link)
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
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
*See Appendix 1 for details of Concession Agreement
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
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
prepared by Investor Relations department BTS Group Holdings PCL
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
5,8
74
59
79 96
105 118
132 139 133 136 144 145
176
197 215 219
-
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180
190
200
210
220
230
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 2014/15
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 (6 YRS) 8%
Dec 99: BTS SkyTrain service opening
Mar 07: First fare rate increase
I
May 09: Opening of Silom Line extension
Farebox revenue CAGR: 10.7% Ridership CAGR: 9.8%
GROWTH (14 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 36% AVG FARE THB 30.9
30-DAY PASS (ADULT)* 30% AVG FARE THB 23.9
PURSE (STV)* 25% AVG FARE THB 26.5
30-DAY PASS (STUDENT)* 8% AVG FARE THB 19.5
ONE-DAY PASS 1% AVG FARE THB 34.1
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 14/15)
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
21
.4
22
.1
24
.2
24
.2
24
.1
24
.4
24
.4
24
.8
26
.4
26
.9
2005/062006/072007/082008/092009/102010/112011/122012/132013/142014/15
prepared by Investor Relations department BTS Group Holdings PCL
145
176 197
215 219
57.1%
67.5% 67.8% 68.8% 69.9%
0.0 %
10. 0%
20. 0%
30. 0%
40. 0%
50. 0%
60. 0%
70. 0%
80. 0%
2010/11 2011/12 2012/13 2013/14 2014/15
100
120
140
160
180
200
220
240
260
280
300
Core BTS SkyTrain Ridership (mn) Operating EBITDA Margin (%)
18
STRONG RIDERSHIP GROWTH ALONG WITH SUSTAINED MARGIN EXPANSION
CORE COSTS AND SG&A BREAKDOWN – FY 14/15
EBITDA MARGIN COMPARISON (CORE ONLY)
MAINTENANCE EXPENSES BREAKDOWN
Core Network Performance Efficient operation; further scope for cost efficiency
BTS Group General Presentation Section 2.1: Mass Transit Business
MAINTENANCE, 14%
STAFF COST, 19%
UTILITIES, 8% DEPRECIATION, 50%
ADMIN, 4%
* FY ending 31 Mar 2014, 2015 ** FY ending 31 Dec 2013, 2014
68.8%
15.1%
44.3%
69.9%
17.4%
43.1%
BTS SkyTrain* Singapore MRT* Hong Kong MTR**
FY 13/14 FY 14/15
387 391 417 377 365 344 361
387
171 200
59
40 27
11 79
95
250
300
350
400
450
500
550
600
650
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
Major overhaul expenses General maintenance expense
(THB mn) OTHERS, 7%
prepared by Investor Relations department BTS Group Holdings PCL
ESTIMATED FLEET***
X7 28 +13.5% ~THB 2.0bn
70
+47.1%
TOTAL FUTURE FLEET X59 306
CURRENT FLEET NO. OF TRAINS TOTAL CARRIAGES CAPACITY INCREASE (CUMULATIVE)
INDICATIVE CAPEX (THB mn)
X35 105 FULLY PAID
X12 48
35
FULLY PAID
FULLY PAID
X5 20
FULLY PAID
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 15-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
TH
B 1
.5b
n
THB
3.7
bn
T
HB
4.6
bn
14
/15
15
/16
16
/17
17
/18
18
/19
19
/20
20
/21
21
/22
22
/23
23
/24
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/25
25
/26
26
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27
/28
28
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29
/30
30
/31
31
/32
32
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33
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34
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35
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36
/37
37
/38
38
/39
39
/40
40
/41
41
/42
42
/43
Interest income O&M - Core Network O&M - Extension
BTSC: OPERATOR of Green Line Extensions 12.8km of extensions already under contract
O&M COSTS AND SG&A BREAKDOWN - FY14/15
BTSC has operated & maintained the extensions since 2009 Agreed fee income with no ridership risk 30-year contract, covers:
11 stations/12.8km extensions (May 2012 – May 2042) 23 stations/ 23.5km Core Network (Dec 2029 – May 2042)
Existing extensions LIGHT GREEN: Saphan Taksin - Wongwian Yai (2.2km/2 stations) DARK GREEN: On Nut – Bearing
(5.3km/5 stations) LIGHT GREEN: Wongwian Yai - Bang Wa
(5.3km/4 stations)
O
21 BTS Group General Presentation Section 2.1: Mass Transit Business
MAINTENANCE, 21%
STAFF COST, 39%
OTHERS, 14%
CLEANING & SECURITY GUARD, 9%
DEPRECIATION, 2%
UTILITIES, 14%
EXTENSION Saphan Taksin – Bang Wa
EXTENSION On Nut - Bearing
CORE NETWORK
O&M PRE-AGREED REVENUE (Excl. VAT)
• CAGR (extension) from FY 14/15 to FY 41/42 = 5.5% • CAGR (core network) from FY 30/31 to FY 41/42 = 1.5%
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 2018 UNDER CONSTRUCTION 12.8
DARK GREEN NORTH
MO CHIT – SAPHAN MAI – KHU KHOT MRTA 2019 UNDER CONSTRUCTION 18.4
LIGHT GREEN BANG WA - BOROMMARATCHACHONNANI BMA 2019 7.0
LRT BANG NA - SUVARNABHUMI BMA 2018 18.3
GREY (PHASE I) WATCHARAPHON – THONG LO BMA 2019 16.3
PINK KHAE RAI – PAK GRED – MIN BURI MRTA 2020 – 2021 36.0
DARK GREEN SAMUT PRAKARN - BANGPU MRTA 2018 7.0
YELLOW LAD PRAO – SAM RONG MRTA 2019 30.4
ORANGE TALING CHAN – MIN BURI MRTA 2019 39.8
LIGHT RED BANG SUE - PHAYATHAI – MAKKASAN SRT 2019 9.0
LIGHT RED MAKKASAN – HUA MARK SRT 2019 10.0
DARK RED RANGSIT – THAMMASART UNIVERSITY SRT 2018 10.0
DARK RED BANG SUE - HUA LAMPHONG SRT 2018 6.5
TOTAL (KM) 297.8
297.8KM ONGOING PROJECTS PRIORITISED BY THE GOVERNMENT, 107.5KM UNDER CONSTRUCTION
CORE AND EXTENSIONS TO OUR CURRENT LINES LINES CONNECTING TO OUR LINES
108.8km
BTS Group: Potential DEVELOPER of Mass Transit Extensions Focused on 6 lines; total length of 108.8km
D
Sources: Office of Transport and Traffic Policy and Planning, National Council for Peace and Order, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, Ministry of Transport
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
D
*See Appendix 2 for details of CAPEX requirements
23 BTS Group General Presentation Section 2.1: Mass Transit Business
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 E&M works with repayment
from government Operator given operation
contract Variations will be considered
PINK LINE • Khae Rai – Min Buri (36.0km) • Expected turnkey bidding: 2016 • Target operation: 2020 – 2021
DARK GREEN NORTH LINE • Mo Chit – Saphan Mai – Khu Khot (18.4km) • Expected O&M award: early 2016 • Target operation: 2020
GREY LINE • Watcharaphol – Rama 9 Bridge (26.0km) • Feasibility study underway • Expected bidding (Phase I): late 2016 • Target operation (Phase I): 2019
Phase I: Watcharaphol – Thong Lo (16.3km)
LIGHT RAIL TRANSIT (LRT) • Bang Na – Suvarnabhumi (18.3km) • Awaiting EIA approval • Expected bidding: 2015 • Target operation: 2018
DARK GREEN SOUTH LINE • Bearing – Samut Prakarn (12.8km) • Civil works progress: 61.1% (as of Jul 2015) • Expected O&M award: end 2015 or early 2016 • Target operation: late 2019
Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, Ministry of Transport
LIGHT GREEN LINE • Bang Wa – Borommaratchachonnani (7.0km) • Expected O&M award: early 2017 • Target operation: 2019
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
Light Green
(Bang Wa – Boromma
ratchachonnani)
Grey
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 • 15 years’ experience in running BTS core lines • Completed BTS core line construction in 35 mths
5) Financial strength with THB 24bn excess liquidity
6) Financial flexibility from the BTS-W3 warrants
*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
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: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
25
prepared by Investor Relations department BTS Group Holdings PCL
TV 62%
Newspapers 13%
Cinema 4%
Radio 5%
Magazines 5%
Outdoor 4%
Transit 4%
In-Store 2%
Internet 1%
Source: The Nielsen Company (Thailand) Limited
Thai Media Market Overview – FY 14/15 Historical Thai Ad Expenditures (THB bn)
Top 10 Ad Spending by Segments
Industry CAGR
1.9%
OOH CAGR
8.4%
Overview of Media Business
Note: Excludes classified ads, house ads, digital and cable TV
Source: The Nielsen Company (Thailand) Limited Note: Excludes classified ads, house ads, digital and cable TV
26 BTS Group General Presentation Section 2.2: Media Business
Traditional CAGR -2.2%
Note: VGI discontinued operations in Modern Trade Media effective 1Q 15/16
89.8 92.6 103.5 105.4
114.1 110.9 101.6
08/09 09/10 10/11 11/12 12/13 13/14 14/15
27.4 26.2 26.9 26.4 27.0 26.4 23.5
6.5 6.6 7.4 8.7 10.5 10.2 9.8
08/09 09/10 10/11 11/12 12/13 13/14 14/15
Note: Out-of-Home Media = Outdoor, Transit and In-Store Traditional Media = Radio, Newspapers and Magazines Source: The Nielsen Company (Thailand) Limited
OVERALL MEDIA INDUSTRY
1 FMCG 40%
2 MOTOR VEHICLES 8%
3 COMMUNICATIONS 7%
4 GOVERNMENT & COMMUNITY ANNOUNCEMENT 6%
5 LEISURE 5%
6 MEDIA & MARKETING 4%
7 RETAIL SHOPS/STORES 3%
8 INSURANCE 3%
9 BANKS 2%
10 REAL ESTATE 2%
MASS TRANSIT MEDIA
1 FMCG 49%
2 COMMUNICATIONS 15%
3 BANKS 6%
4 CREDIT/DEBIT CARDS 5%
5 TRAVEL & TOUR 5%
6 MEDIA & MARKETING 5%
7 RETAIL SHOPS/STORES 4%
8 MOTOR VEHICLES 4%
9 MULTI SECTIONS ADVERTISING 3%
10 REAL ESTATE 3%
Total market value of advertisement industry = THB 101.6bn
prepared by Investor Relations department BTS Group Holdings PCL
53% 61%
47% 39%
FY 13/14 FY 14/15
27
Media Business: Financial Performance High Margins, No Leverage
Revenues by business unit
Key Financial Ratios
(THB mn)
FY 13/14 FY 14/15
OVERALL 61% 59%
BTS-RELATED MEDIA 88% 83%
OFFICE BUILDING & OTHERS 30% 23%
BTS Group General Presentation Section 2.2: Media Business
BTS-related Media
Office Buildings & Other Media
1,370
1,959
2,795 3,121
2,926
756 1,012
1,386 1,580 1,530
FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15
Operating Revenue Operating EBITDA
Gross Profit Margin
Operating revenues and Operating EBITDA
FY 13/14 FY 14/15
NET PROFIT MARGIN 36.4% 28.3%
RoA 27.8% 43.1%
RoE 44.3% 60.7%
DEBT-TO-EQUITY N.A. 0.3x
Note: Ratios taken from VGI’s consolidated financial statements
prepared by Investor Relations department BTS Group Holdings PCL
871 1,125
1,379 1,660 1,776
FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15
BTS SkyTrain Media Exclusive rights for the Core BTS SkyTrain Network
BTS Media Revenue (THB mn)
CAGR (4 years) = 19.5%
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
29
Office Buildings and Other Media
KEY CONTRACT TERMS
RIGHTS AND LENGTH OF CONTRACT
Office Buildings 103 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
30
Outdoor Media
KEY CONTRACT TERMS
RIGHTS AND LENGTH OF CONTRACT
ACCOUNTING METHOD
Take equity method
SYNERGY
Sales synergies are created by bundling media packages with VGI’s existing network
VGI appointed as exclusive selling agents
Knowledge sharing among highly experienced management team
Billboard Street Furniture
MACO’S MEDIA
MIDAS’ MEDIA
BTS Group General Presentation Section 2.2: Media Business
Outdoor Media Expansion into Outdoor Media segment through holdings in
other outdoor advertising companies 24.96% stake in Master Ad PCL (MACO; listed on Stock Exchange
of Thailand) 30.0% holdings in Midas Global Media Company Limited (MIDAS;
non-listed) Total network of 170 billboards and 66 lightboxes & LEDs in
Bangkok and vicinity
Transit Media Made-to-Order
LED Lightboxes
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: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
31
prepared by Investor Relations department BTS Group Holdings PCL
Property Portfolio
PROPERTY BOOK VALUE BREAKDOWN LAND FOR DEVELOPMENT ALONG MASS TRANSIT ROUTE
Location Total Area (Rai) Total Area (Sq.m.)
Bangkok 61.6 98,504.0
Samutprakarn 319.8 511,711.6
Nakorn Ratchasima 661.4 1,058,180.0
Chiang Rai 163.1 260,992.0
Phuket 37.3 59,740.0
Other Provinces 95.2 152,372.0
Total 1,338.4 2,141,499.6
*as of 30 Jun 2015
32 BTS Group General Presentation Section 2.3: Property Business
TOTAL BOOK VALUE:
THB 7.6BN
Land bank THB 2.0bn
Commercial THB 3.6bn
Residential THB 1.9bn
LIST OF LAND BANK
25.1%
48.0%
26.9%
EASTIN GRAND HOTEL
PHAYATHAI: LAND BANK
SITE AREA: 10,526 SQM
THANA CITY GOLF & SPORTS CLUB
SITE AREA: 511,712SQM
* Mochit Land: 8,063 sqm was sold to BTS-SIRI JVCo1 and 17,779 sqm was sold to U City
Sold to BTS-SIRI JVCo1
Sold to U City
MO CHIT: LAND BANK*
SITE AREA: 25,842SQM
ABSTRACTS 66/1
ABSTRACTS PHY
prepared by Investor Relations department BTS Group Holdings PCL
41 41 41 41 41 26 26 26 26
390 390
86
86
Jun 2008 Nov 2010 Oct 2012 Dec 2014 Apr 2015
U Sathorn
Eastin Grand Sathorn
U Inchantree Kanchanaburi
U Chiang Mai
33
Commercial and Residential Property
COMMERCIAL PROPERTY REVENUE BREAKDOWN NO. OF KEYS UNDER HOTEL GROUP
RESIDENTIAL PROPERTY
LOCATION: 250M FROM NEW BTS STATION
SITE AREA: 33,420 SQM (20-3-55 RAI)
LAND TENURE: FREEHOLD
AVERAGE SALE PRICE: THB 76,400 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
TDC: THB 296MN (USD 10MN) TDC: THB 2,527MN (USD 81MN)
Debt THB 1,697mm USD 54mn
Equity THB 732mn USD 24mn
Deposit & Sales proceeds THB 196mn USD 6mn
Deposit & Sales
proceed THB 93mn USD 3mn
Equity THB203mn USD 7mn
BTS Group General Presentation Section 2.3: Property Business
Others 13%
Eastin Grand Sathorn 54% U-Hotels
11%
Thana City Golf 22%
FY 14/15 Commercial
Property Revenue:
THB 932mn
“PROJECT COMPLETED”
Total keys
41 67
457
543
153
prepared by Investor Relations department BTS Group Holdings PCL
34
Property Update – Partnership Approach
SANSIRI TRANSACTION
BTS and SIRI entered into a “STRATEGIC ALLIANCE FRAMEWORK AGREEMENT” (SAFA)
Exclusive partnership to jointly invest and develop residential developments for sale along mass transit stations
Target THB 100bn in project value launched over 5 years
Establish 50:50 joint venture companies to accommodate the development of new residential projects for sale
Divest 3 assets to U CITY for consideration of THB9.4bn in exchange for U CITY shares representing 35.64% of total issued shares of U CITY
Transaction was concluded on 20 April 2015
U CITY is the vehicle for developing a portfolio of income-
generating assets along mass transit routes
These transactions enable BTS Group to: 1. Recognise gains on sale of assets to the benefit of existing BTS Group shareholders 2. Partnered with real estate players with expertise in their respective sectors 3. Retain a major economic stake in the development of those assets 4. Use only existing assets as equity without the need for further capital investment
U CITY TRANSACTION
For detailed information on the transactions, please refer to our Strategic Partnership for City Living presentation at: http://bts.listedcompany.com/misc/presentation/20141017-bts-property-strategy.pdf
BTS Group General Presentation Section 2.3: Property Business
prepared by Investor Relations department BTS Group Holdings PCL
35
Property Update BTS-Sansiri Project Launches in 2015
Project Name THE LINE
Jatujak - Mochit THE LINE
Sukhumvit 71 THE LINE
Ratchathewi THE LINE
Wongsawang THE LINE
Phahonyothin Park Project #6
Distance from mass transit station
300m from BTS Mo chit
400m from BTS Prakanong
250m from BTS Ratchathewi
50m from Wong Sawang Station
250m from BTS Ha Yak Lad Phrao
CBD
Project value THB 5.8bn THB 2.0bn THB 2.8bn* THB 5.1bn* THB 3.5bn* THB 5.1 bn*
No. of units 841 (43 floors) 291 (28 floors) 231 (38 floors) 1,287 (36 floors) 855 (33 floors) 130 (46 floors)
Avg. selling price per sqm
THB 178.9k THB159.8k; fully furnished
THB 255k* THB 120k* THB 120k* THB 231k*
Land Area (Rai) 4-2-95.7 1-3-54.4 1-2-12 6-1-97 2-0-36* 2-2-41.7*
Intl. Roadshow/ Domestic Presales
Construction Starts
Construction Completion
Aug 2015
May 2015
Nov 2016
Dec 2016
Feb 2017
Transfer Starts
Transfer Completion
Oct 2015
Jan 2016
Apr 2018
May 2019
Jul 2019
Feb 2016
Nov 2014
Oct 2017
Nov 2017
Apr 2018
Oct 2015
Mar 2016
Mar 2019
Apr 2019
Jul 2019
Nov 2015
Apr 2016
Mar 2019
Apr 2019
Jun 2019
May 2015
Mar 2015
Jan 2018
Feb 2018
Jun 2018
Target project value revised up to THB 100bn (from THB 25-30bn) to be developed over 5 years under the “Strategic Alliance Framework Agreement”
Approximately THB 25bn in project value launched in 2015 Expected equity IRR ≈ 17% and NPAT margin ≈ 12%
*Approximate figures
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: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
36
prepared by Investor Relations department BTS Group Holdings PCL
37
Overview of Services Business
BANGKOK SMARTCARD SYSTEM (BSS)
BTS Group General Presentation Section 2.4: Services Business
TOP-UP CHANNELS
BTS Ticket Offices
McDonald’s
AIS Kiosks
Auto Top-up w/ Co-branded
Cards
Over-the-Air
The E-money service provider with a common ticketing system
supporting BTS and BRT. BSS system also encompass other forms
of public transportation as well as retail, service and tourism
sectors.
RABBIT
>50 brand
partners
• Use with mobile devices supporting NFC technology
• Use on BTS SkyTrains & BRT
• Use in retail stores
Mini Mart Food Court
BRT Ticket Offices
4.0mn Rabbit cards in circulation
(as of Jul 2015)
prepared by Investor Relations department BTS Group Holdings PCL
Thana City Branch
38
Overview of Services Business
Premium Chinese restaurant chain managed by Man Kitchen
4 existing dine-in branches and 3 express branches
Plans underway to develop 6-9 more branches under various
formats by 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 60 80 Number of rooms >8,900 10,000 Under AHS contracts 2014/15 2015/16E
CHEFMAN RESTAURANTS ABSOLUTE HOTEL SERVICES (AHS)
BTS Group General Presentation Section 2.4: Services Business
Eastin Grand Sathorn Branch
Express Branch at Royal Place 2
Royal Place 2 Branch
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: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
39
prepared by Investor Relations department BTS Group Holdings PCL
FY 14/15 REVENUE & EBITDA CONTRIBUTION BY BU
32% 37%
41%
44%
19%
15% 8% 4%
Revenue Contribution EBITDA Contribution
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 FS (THB mn)
FY 14/15
FY 13/12 FY 12/11
FY 11/10
Operating revenues 7,102 8,532 10,375 7,720
Operating expenses 3,163 4,147 5,317 4,077
Non-recurring items 520 10,971 897 1,189
EBITDA 4,937 10,334 6,186 5,344
Operating EBITDA(1) 2,836 3,100 5,081 3,913
Net income(2) 2,944 12,598 1,719 2,106
Key financial ratios FY 14/15 FY 13/12 FY 12/11 FY 11/10 Profitability ratios (%)
Gross operating profit margin 55.5% 51.4% 48.8% 47.2% SG&A to operating sales ratio 22.0% 19.5% 16.6% 15.8% Accounting EBITDA margin 51.8% 73.% 53.3% 57.8% Operating EBITDA margin(1) 39.9% 36.3% 49.0% 50.7%
Recurring net profit margin (%) 32.8% 25.4% 9.7% 13.2% Liquidity ratio Current ratio (times) 3.83x 4.36x 5.79x 0.94x Leverage (Times) Total liability to total asset 0.22x 0.22x 0.25x 0.45x Total liability to total equity 0.28x 0.29x 0.33x 0.81x Net debt to equity (0.11)x (0.03)x 0.17x 0.67x Net debt to operating EBITDA (1.96)x (0.65)x 1.66x 6.32x Interest coverage(3) 7.03x 4.94x 4.07x 2.73x
Per share ratios (THB per share)
Book value per share 4.38 5.09 5.05 4.05 Dividend yield (4) 6.38% 7.37% 4.71% 6.38%
REVENUE COMPARISON BY BUSINESS UNIT
** Subject to shareholders’ approval of the final dividend of THB 0.30per share. Dividend yield based on share price as of date prior to Board of Directors’ approval of relevant dividend payment
40 BTS Group General Presentation Section 3: Financial Summary
(THB mn)
2,077 3,121 2,934
399
8,532
2,274 2,926
1,355 548
7,102
Mass Transit Media Property Services Total
FY 13/14 FY 14/15
Property
Mass Transit
Media
Services
prepared by Investor Relations department BTS Group Holdings PCL
39,368 40,809
37,343 26,003
31-Mar-14 31-Mar-15
59,542 52,012
8,612 8,004
8,557 6,795
31-Mar-14 31-Mar-15
THB mn
Registered Capital (15,913.1mn shares @ THB 4.0)
63,653
Issued and paid-up (11,919.3mn shares @ THB 4.0)
47,677
Others 3,860
Retained earnings (Deficits) 475
Total Shareholders’ Equity 52,012
Type Outstanding
warrants (mn)
Exercise ratio (warrant : share)
Exercise price (THB)
Outstanding shares reserved for warrants
(mn) % Dilution
BTS-WA 6.2 1 : 0.166* 4.220* 0.8 0.0%
BTS-WB 11.1 1 : 1 5.01 11.1 0.1%
BTS-WC 16.0 1 : 1 To be determined 16.0 0.1%
BTS-W3 3,971.6 1 : 1 12.00 3,971.6 25.0%
Total 3,999.6 25.1%
SHAREHOLDERS’ EQUITY
ASSSETS BREAKDOWN (THB MN) LIABILITIES AND EQUITY BREAKDOWN (THB MN) 76,757 66,812
Non-current assets
Current assets
as of 13 Oct 2015
41 BTS Group General Presentation Section 3: Financial Summary
* Adjusted under the conditions as stated in the terms and conditions of the warrants
Balance Sheet
DILUTION IMPACT
as of 31 Mar 2015
ESOP
Current liabilities Non-current liabilities
76,757 66,812
Equity
49%
51%
39%
61%
11%
78%
11%
10%
78%
12%
prepared by Investor Relations department BTS Group Holdings PCL
2015/16 BTS Group Targets and CAPEX
BTS GROUP CAPEX (THB mn)
*excludes BTS Assets’ revenues **excludes real estate development cost for Property business
MEDIA
26% Revenue Contraction (excl. Modern Trade Media)
PROPERTY
THB 620mn Residential Property Revenue
THB 590mn* Commercial Property Revenue
MASS TRANSIT
4 – 6% Ridership Growth
2% Average Fare Increase
3% O&M Revenue Growth
2015/16 BTSGIF CAPEX is expected to be approx. THB 280mn (not included in BTS Group CAPEX)
42
BTS GROUP TARGETS
SERVICES
5.0mn Rabbit Cards in circulation
6-9 additional ChefMan branches
BTS Group General Presentation Section 3: Financial Summary
105
270
1,220
305
10
Masstransit
Media Property Services BTS Group
FY 15/16 TOTAL CAPEX**: THB 1,910MN
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: Key Terms of the Core Network Concession Agreement
Appendix 2: Future Funding Requirements (Mass Transit)
Appendix 3: BTS-W3
Appendix 4: BTSC’s Quality Management System
43
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 1: Core Network Concession Agreement Key terms and background
BTS Group General Presentation Appendix 1: 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.
44
prepared by Investor Relations department BTS Group Holdings PCL
18,849 15,000 12,250
46,099
9,129 20,056
23,152
10,500 12,000
74,837
-
-
-
-
2,400
-
2,400
Dark Green South(Bearing - Samut
Prakarn)
Dark Green North (MoChit - Saphan Mai -
Khu Khot)
Pink Line (Kae Rai -Min Buri)
LRT (Bang Na -Suvarnabhumi)
Light Green line (BangWa - Taling Chan)
Grey Line(Watcharaphon -
Rama 4)
Total
Rolling Stock E&M Civil works
Thong Lo)
Appendix 2: Future Funding Requirements (Mass Transit) BTS Pipeline
BTS Group General Presentation Appendix 2: Future Funding Requirements (Mass Transit)
PROJECTED CAPEX BREAKDOWN OF 6 EXPECTED FUTURE LINES (THB mn)
KEY ASSUMPTIONS
Total CAPEX for 6 lines = THB 123.3bn with D/E Ratio = 1.5 : 1 Total equity required by BTS Group = THB 49.3bn
Source: Office of Transport and Traffic Policy and Planning (OTP), Mass Rapid Transit Authority of Thailand (MRTA) and Company estimates
123,336
24,250 25,500
42,001
9,129
20,056
2,400
45
Borommaratcha- chonnani)
12.8km
18.4km
36.0km
18.3km
7.0km
16.3km
108.8km
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 2: Future Funding Requirements (Mass Transit) PPP Gross Cost (E&M only) – Dark Green North (Mochit – Saphan Mai)
BTS Group General Presentation Appendix 2: 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
46
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 3: BTS-W3 Term Sheet
BTS Group General Presentation Appendix 3: 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 EXISTING BTS SHARES : 1 BTS-W3
NO. OF WARRANTS 3,944,626,464 UNITS
EXERCISE RATIO 1 BTS-W3 TO 1 NEW COMMON SHARE OF BTS
EXERCISE PRICE THB 12.00 PER SHARE
EXPECTED MAXIMUM
PROCEEDS THB 47,336MN
WARRANTS TERMS AND CONDITIONS
47
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 4: BTSC’s Quality Management System
BTS Group General Presentation Appendix 4: 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).
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