BTS Group Holdings PCL

Transcription

1 GENERAL PRESENTATION FEBRUARY 2016

2 IR Contacts Address: IR Department 15 th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd. Chomphon, Chatuchak, Bangkok, Thailand Telephone: +66(0) Fax: +66(0) Website: Disclaimer 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. 2

3 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 Group Profile Mass Transit Business Media Business Property Business Services Business 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

4 BTS Group History APR: BTSC sold the future Net Fare-box Revenue under its Concession Agreement to BTS Rail Mass Transit Infrastructure Fund (BTSGIF) Company established as Tanayong Co., Ltd. to operate in property development field Tanayong established a wholly-owned subsidiary, Bangkok Transit System Corporation Ltd. (BTSC), which won the SkyTrain concession bid BTSC exit court supervised rehabilitation procedure 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 Tanayong listed on The Stock Exchange of Thailand under Property Development sector Commercial operation of the BTS SkyTrain began BTSC expanded into Media business through the acquisition of 100% of VGI Global Media Co., Ltd. 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 Section 1: 4

5 Shareholding Structure as of 30 December 2015 OTHERS KANJANAPAS FAMILY 2.5%, mn shares INSTITUTIONAL INVESTORS OTHERS 41.0% % % 1 BTS GROUP MASS TRANSIT MEDIA PROPERTY SERVICES 33.3% BTSGIF Listed entities Subsidiaries Associates BTSC 97.46% 100% 100% 100% 24.96% 20% 11.11% 51.0% 100% 100% VGI GLOBAL MEDIA PCL VGI ADVERTISING MEDIA CO., LTD. 23.3% MEDIA CO., LTD. POINT OF VIEW (POV) MEDIA GROUP CO., LTD. MASTER AD PCL AERO MEDIA GROUP CO., LTD. MIDAS GLOBAL MEDIA CO., LTD. 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 1 Information based on the book closure date as at 30 Oct 15 with total issued shares = 11,929.3mn shares 2 BTSG holds 74.3% of VGI indirectly and directly Section 1: THE COMMUNITY ONE CO., LTD. THE COMMUNITY TWO CO., LTD % 100% 100% U CITY PCL PRANNAKIRI ASSETS CO., LTD. SIAM PAGING AND COMMUNICATION CO., LTD. DNAL CO., LTD. MUANGTHONG ASSETS CO., LTD. BTS LAND CO., LTD. TANAYONG PROPERTY MANAGEMENT CO., LTD. TANAYONG FOOD & BEVERAGE CO., LTD. YONGSU CO., LTD. THANA CITY GOLF & SPORTS CLUB CO., LTD. MAK8 CO., LTD. KEYSTONE ESTATE CO., LTD. RATBURANA PROPERTY CO., LTD. KINGKAEW ASSETS CO., LTD. 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 100% UNICORN ENTERPRISE CO., LTD. BAYSWATER CO., LTD. NUVO LINE AGENCY CO., LTD. BTS SANSIRI HOLDING ONE LTD. BTS SANSIRI HOLDING TWO LTD. BTS SANSIRI HOLDING THREE LTD. BTS SANSIRI HOLDING FOUR LTD. BTS SANSIRI HOLDING FIVE LTD. BTS SANSIRI HOLDING SIX LTD. BTS SANSIRI HOLDING SEVEN LTD. BTS SANSIRI HOLDING EIGHT LTD. BTS SANSIRI HOLDING NINE LTD. BTS SANSIRI HOLDING ELEVEN LTD. BTS SANSIRI HOLDING TWELVE LTD. 100% 100% TANAYONG HONG KONG LTD. 100% 100% 100% 70% 51% 50% 90% TANAYONG INTERNATIONAL LTD. 80% 60% 51% 51% 51% 25% CARROT REWARDS CO., LTD. PRIMARY KITCHEN CO., LTD. BSS HOLDINGS CO., LTD. MAN KITCHEN CO., LTD. 75% HHT CONSTRUCTION CO., LTD. ABSOLUTE HOTEL SERVICES CO., LTD % RABBITPAY SYSTEM CO., LTD. BANGKOK PAYMENT SOLUTIONS CO., LTD. ATS RABBIT SPECIAL PURPOSE VEHICLE CO., LTD. ASK DIRECT GROUP CO., LTD. ASK BROKER ASSOCIATION CO., LTD. ASK HANUMAN CO., LTD. BANGKOK SMARTCARD SYSTEM CO., LTD. LITTLE CORNER CO., LTD. ABSOLUTE HOTEL SERVICES HONG KONG LIMITED 12.26% 5

6 BTS Group Overview 4 Business Units MASS TRANSIT MEDIA PROPERTY SERVICES 2,795 3,121 2, (1) FY ended 31 March FY 12/13 FY 13/14 FY 14/15 9M 15/16 (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 Section 1: Historical operating revenues (1) 6,016 1,445 Mass Transit Revenue (THB mn) 2,077 2,274 1,834 * FY 12/13 FY 13/14 FY 14/15 9M 15/16 Media Revenue (2) (THB mn) 2,934 1,355 1,578 FY 12/13 FY 13/14 FY 14/15 9M 15/16 Property Revenue (THB mn) 725 FY 12/13 FY 13/14 FY 14/15 9M 15/16 Services Revenue (3) (THB mn) Revenue contribution FY 14/15 9M 15/16 32% 39% *O&M Revenue: THB 1,184mn; Share in BTSGIF: THB 650mn FY 14/15 9M 15/16 41% 19% 8% 34% FY 14/15 9M 15/16 15% FY 14/15 9M 15/16 12% 6

7 BTSG at a Glance PROGRESSIVE DIVIDEND POLICY 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) EMPLOYEES (as of 31 Mar 2015) MASS TRANSIT 2,039 MEDIA 466 PROPERTY 918 SERVICES 505 BTS GROUP HOLDINGS 72 KEY FIGURES (as of 31 Mar 2015) THB (mn) USD (mn)* OPERATING REVENUE 7, OPERATING EBITDA 2, NET INCOME** 2, TOTAL ASSETS 66,811 2,053 *Source: Bank of Thailand, based on weighted-average Interbank Exchange Rate of USD 1 = THB as of 28 May 2015 **to equity holders of the parent 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) AVERAGE DAILY TRADED VALUE (USD MN) 13.7 Section 1: TOTAL 4,000 7

8 Investment Highlights BENEFICIARY FROM MASS TRANSIT DEVELOPMENT AND MASS TRANSIT EXPANSION ACROSS ALL OF OUR BUSINESS UNITS SHAREHOLDER RETURN OPPORTUNITIES 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 STRONG FINANCIAL POSITION: BTS Group has excess cash and liquid investments of THB14.66bn 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 Section 1: 8

9 Key Developments 2014/15 NET RECURRING PROFIT (THB mn) 10.0% DIVIDEND YIELD / DIVIDEND PAYMENT Dividend yield of 6.4% (THB mn) 7.4% 6.4% 2,563 2, % 7,073 7,095 1,030 4, / / /15 Reduction in finance costs 2012/ / /15 Committed dividend payment (at least THB 21bn over 3 years) CAPEX (THB mn) 41.7% SHARE REPURCHASE PROGRAMME In Aug 2014, BoD approved a share repurchase programme not exceeding THB 6bn (or 5% of total issued shares) 1,329 1,235 1, / / /15 Section 1: 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 9

10 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 Group Profile Mass Transit Business Media Business Property Business Services Business 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

11 BTS Group Vision 2020 THAILAND S LEADING MASS TRANSIT DEVELOPER AND OPERATOR 9.5X BKK MASS TRANSIT EXTENSION COVERAGE 12.8 km 9.5x km MASS TRANSIT RAIL LENGTH TARGETS (KM) Target Network Length in km * BTS Target Distance in km T = Target TARGET 9.5X MASS TRANSIT O&M REVENUE THB 1.5bn 9.5x > THB 14bn TARGET O&M = Operation and Maintenance Section 2.1: Mass Transit Business T 2020T 2029T *Source: Office of Transport and Traffic Policy and Planning 11

12 Role of BTS Group in Mass Transit Investor, Operator, Developer, Concessionaire I 33.3% INVESTMENT IN BTSGIF OPERATOR OF BTS SKYTRAIN CORE NETWORK O Underlying assets have 16-year track record Growth & resilience characteristics Stable and growing dividend yield Full beneficiary of Ridership growth Fare increases Operating leverage until Dec 2029 BTS GROUP Exclusive operator of BTS SkyTrain Core Network (23.5km) 16 year track record Operate at cost, but potential benefit from incentive fee Limited CAPEX, large CAPACITY Remain legal concessionaire O OPERATOR OF CORE NETWORK EXTENSIONS ROLE IN MASS TRANSIT DEVELOPER OF RAIL MASS TRANSIT D Appointed to operate & maintain Green line by the Bangkok Metropolitan Administration (BMA) Track record since year contract covering Green line extensions (12.8km) from 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 Section 2.1: Mass Transit Business 12

13 Bangkok Rail Mass Transit Master Plan km* by 2029, 42.4% share of Mass Transit commute by 2032 *Includes MRTA and BMA projects Sources: Office of Transport and Traffic Policy and Planning, Bangkok Metropolitan Administration RAIL MASS TRANSIT MARKET SHARE** Seoul 51% Hong Kong 46% Singapore 40% Tokyo 36% Guangzhou 17% Bangkok 6% Source: OTP, Singapore s Land Transport Authority, Hong Kong s Transport Department, MTR Corporation Limited, SMRT Corporation Limited, Japan Statistic Bureau ** Percentage of people using rail mass transit over other forms of mass transit PERVASION (per million population) (rail track length per mn population) Hong Kong 35.1 Singapore 32.4 Tokyo 24.1 Bangkok 8.0 Section 2.1: Mass Transit Business Source: United Nations Statistics Division, BTSC, BMCL, MTR Corporation Limited, SMRT Corporation Limited, official websites of rail mass transit system in major cities 13

14 Existing Bangkok Mass Transit Network Immature network, 84.8km as of 2015 EXISTING LINES KM; 60 STATIONS LINE DARK GREEN (CORE) LIGHT GREEN (CORE) BLUE LIGHT GREEN (EXTENSION) AIRPORT LINK (RED LINE) DARK GREEN (EXTENSION) LIGHT GREEN (EXTENSION) CORE NETWORK ROUTE DISTANCE (KM) OPERATING SINCE MO CHIT ON NUT 17.0 DEC 99 NATIONAL STADIUM SAPHAN TAKSIN BANG SUE HUA LAMPHONG SAPHAN TAKSIN WONGWIAN YAI PHAYATHAI SUVARNABHUMI 6.5 DEC JUL MAY AUG 10 ON NUT BEARING 5.3 AUG 11 WONGWIAN YAI BANG WA EXTENSIONS TO OUR CURRENT CORE NETWORK 5.3 DEC 13 LIGHT GREEN NATIONAL STADIUM BANG WA 14.0km BLUE BANG SUE - HUA LAMPHONG 20.0km ARL PHAYATHAI - SUVARNABHUMI 28.5km DARK GREEN MO CHIT BEARING 22.3km 3 RAIL MASS TRANSIT OPERATORS BTS: 36.3km (SkyTrain) BEM: 20.0km (Underground) SRT: 28.5km (Airport Rail Link) Section 2.1: Mass Transit Business 14

15 I BTS Group: INVESTOR in BTSGIF (Core Network) Prime position to capture growth from Network Expansion WHAT IS THE CORE NETWORK? WHAT IS BTSGIF? 23 stations, 23.5km located at the heart of Bangkok Inaugural Mass Transit route, operated since Dec 1999 NO REVENUE SHARING TO BMA LIGHT GREEN NATIONAL STADIUM - SAPHAN TAKSIN 6.5km DARK GREEN MO CHIT ON NUT 17.0km 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 1 for details of Concession Agreement Section 2.1: Mass Transit Business 15

16 I BTS Group: INVESTOR in BTSGIF (Core Network) Uninterrupted revenue growth and resilient under pressure GROWTH (14 YRS) Farebox revenue (THB mn) Ridership (mn) Farebox revenue CAGR: 10.7% Ridership CAGR: 9.8% , , , , , , ,292 3,224 3, ,485 3,545 4,297 4,896 5,677 5, / / / / / / / / / / / / / / /15 Dec 99: BTS SkyTrain service opening Jul 04: Opening of Bangkok MRT System (Blue line) May 09: Opening of Silom Line extension May 10: Opening of Bangkok BRT; Thai political protests Mar 07: First fare rate increase Aug 10: Opening of Airport Rail Link Aug 11: On Nut Bearing extension opening Oct Nov 11: Floods Apr 13: Sale of net farebox revenue to BTSGIF Jun 13: Fare increase Nov 13: Thai political protests Dec 13: Wongwian Yai Bang Wa extension opening INITIAL GROWTH RIDERSHIP CAGR (3 YRS): 21% Section 2.1: Mass Transit Business STABLE GROWTH RIDERSHIP CAGR (5 YRS): 5% FASTER GROWTH RIDERSHIP CAGR (6 YRS) 8% 16

17 I BTS Group: INVESTOR in BTSGIF (Core Network) Flexibility to increase fares FARE ADJUSTMENT MECHANISM DISTANCE-BASED FARE (BY NO. OF STATIONS) EFFECTIVE FARE 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 AUTHORISED 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) HISTORICAL AVERAGE FARE RIDERSHIP BY TICKET TYPES (FY 14/15) THB AUTHORISED FARE EFFECTIVE FARE POTENTIAL FARE UPSIDE NO. OF STATIONS THB / Trip 30-DAY PASS (STUDENT)* 8% AVG FARE THB 19.5 ONE-DAY PASS 1% AVG FARE THB 34.1 SJT 36% AVG FARE THB DAY PASS (ADULT)* 30% AVG FARE THB /062006/072007/082008/092009/102010/112011/122012/132013/142014/15 Section 2.1: Mass Transit Business * Counted as Rabbit PURSE (STV)* 25% AVG FARE THB

18 80. 0% 70. 0% 60. 0% 50. 0% 40. 0% 30. 0% 20. 0% 10. 0% 0.0 % Core Network Performance Efficient operation; further scope for cost efficiency STRONG RIDERSHIP GROWTH ALONG WITH SUSTAINED MARGIN EXPANSION EBITDA MARGIN COMPARISON (CORE ONLY) 57.1% 67.5% 67.8% 68.8% 69.9% 68.8% 69.9% FY 13/14 FY 14/ % 17.4% 44.3% 43.1% 2010/ / / / /15 BTS SkyTrain* Singapore MRT* Hong Kong MTR** Core BTS SkyTrain Ridership (mn) Operating EBITDA Margin (%) * FY ending 31 Mar 2014, 2015 ** FY ending 31 Dec 2013, 2014 CORE COSTS AND SG&A BREAKDOWN FY 14/15 MAINTENANCE EXPENSES BREAKDOWN OTHERS, 7% MAINTENANCE, 14% (THB mn) ADMIN, 4% DEPRECIATION, 50% STAFF COST, 19% UTILITIES, 8% / / / / / / / /15 Major overhaul expenses General maintenance expense Section 2.1: Mass Transit Business 18

19 BTSGIF Investment Core Concession for BTS Core SkyTrain Network Ample capacity with limited Capex for concession period CURRENT FLEET NO. OF TRAINS TOTAL CARRIAGES CAPACITY INCREASE (CUMULATIVE) INDICATIVE CAPEX (THB mn) X FULLY PAID Already operated in May 2013 X FULLY PAID FULLY PAID Already fully operated in Feb 2014 TOTAL CURRENT FLEET X X5 20 FULLY PAID ESTIMATED FLEET*** Expect to order in 2017, expect to be delivered in 2019 Expected required by 2032 TOTAL FUTURE FLEET X * 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) Section 2.1: Mass Transit Business X % ~THB 2.0bn % SYSTEM DESIGN CAPACITY OF 50,000 PPHPD* CURRENT CAPACITY OF 24,000** PPHPD 19

20 O BTSC is the OPERATOR of the Core Network Thailand s most experienced Operator OPERATED & MAINTAINED THE CORE NETWORK SINCE 5 DEC 1999 Reliable Operations Team with 16-year track record Impeccable safety record Strong management expertise 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) Incentive Fee FAREBOX REVENUE net of OPERATING EXPENSES CAPITAL EXPENDITURE PAYABLE BY BTSGIF TO BTSC ONLY WHEN NET FAREBOX REVENUE EXCEEDS BUDGET 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 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 Section 2.1: Mass Transit Business 20

21 THB 1.5bn 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 33/34 34/35 35/36 36/37 37/38 38/39 39/40 40/41 41/42 42/43 O BTSC: OPERATOR of Green Line Extensions 12.8km of extensions already under contract EXTENSION Saphan Taksin Bang Wa CORE NETWORK EXTENSION On Nut - Bearing 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&M PRE-AGREED REVENUE (Excl. VAT) O&M COSTS AND SG&A BREAKDOWN - FY14/15 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% OTHERS, 14% MAINTENANCE, 21% THB 3.7bn THB 4.6bn CLEANING & SECURITY GUARD, 9% DEPRECIATION, 2% UTILITIES, 14% STAFF COST, 39% Interest income O&M - Core Network O&M - Extension Section 2.1: Mass Transit Business 21

22 D BTS Group: Potential DEVELOPER of Mass Transit Extensions Focused on 6 lines; total length of 108.8km 297.8KM ONGOING PROJECTS PRIORITISED BY THE GOVERNMENT, 107.5KM UNDER CONSTRUCTION LINE ROUTE AUTHORISING BODY OPERATE YEAR CONSTRUCTION PROGRESS PURPLE BANG YAI - BANG SUE MRTA 2016 UNDER CONSTRUCTION 23.0 BLUE HUA LAMPHONG - BANG KHAE MRTA 2017 UNDER CONSTRUCTION 14.0 BLUE BANG SUE - THA PRA MRTA 2017 UNDER CONSTRUCTION 13.0 DISTANCE (KM) DARK RED BANG SUE - RANGSIT SRT 2017 UNDER CONSTRUCTION 26.3 DARK GREEN SOUTH DARK GREEN NORTH BEARING - SAMUT PRAKARN MRTA 2019 UNDER CONSTRUCTION 12.8 MO CHIT SAPHAN MAI KHU KHOT MRTA 2020 UNDER CONSTRUCTION 18.4 LIGHT GREEN BANG WA - BOROMMARATCHACHONNANI BMA LRT BANG NA - SUVARNABHUMI BMA km GREY (PHASE I) WATCHARAPHON THONG LO BMA PINK KHAE RAI PAK GRED MIN BURI MRTA DARK GREEN SAMUT PRAKARN - BANGPU MRTA YELLOW LAD PRAO SAM RONG MRTA ORANGE TALING CHAN MIN BURI MRTA LIGHT RED BANG SUE - PHAYATHAI MAKKASAN SRT LIGHT RED MAKKASAN HUA MARK SRT DARK RED RANGSIT THAMMASART UNIVERSITY SRT DARK RED BANG SUE - HUA LAMPHONG SRT TOTAL (KM) CORE AND EXTENSIONS TO OUR CURRENT LINES LINES CONNECTING TO OUR LINES 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 Section 2.1: Mass Transit Business 22

23 D BTS Group: Potential DEVELOPER of Mass Transit extensions BTSG well-positioned for new contracts Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, Ministry of Transport DARK GREEN NORTH LINE Mo Chit Saphan Mai Khu Khot (18.4km) Civil works progress: 3.2% (as of Jan 2016) Expected O&M award: mid 2016 Target operation: 2020 PINK LINE Khae Rai Min Buri (36.0km) Expected turnkey bidding: 2016 Target operation: GREY LINE Watcharaphol Rama 9 Bridge (26.0km) Awaiting EIA approval Expected bidding (Phase I): late 2016 Target operation (Phase I): 2019 Phase I: Watcharaphol Thong Lo (16.3km) 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 LIGHT RAIL TRANSIT (LRT) Bang Na Suvarnabhumi (18.3km) Expected bidding: 2016 Target operation: 2019 LIGHT GREEN LINE Bang Wa Borommaratchachonnani (7.0km) Expected O&M award: 2017 Target operation: 2019 DARK GREEN SOUTH LINE Bearing Samut Prakarn (12.8km) Civil works progress: 77.3% (as of Jan 2016) Expected O&M award: mid 2016 Target operation: late 2019 *See Appendix 2 for details of CAPEX requirements Section 2.1: Mass Transit Business 23

24 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 ratchachon nani) 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 16 years experience in running BTS core lines Completed BTS core line construction in 35 mths 5) Financial strength with THB 15bn excess liquidity 6) Financial flexibility from the BTS-W3 warrants *compared between seamless model and shuttle service model Section 2.1: Mass Transit Business 24

25 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 Group Profile Mass Transit Business Media Business Property Business Services Business 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

26 Overview of Media Business Note: VGI discontinued operations in Modern Trade Media effective 1Q 15/16 Thai Media Market Overview FY 14/15 Transit Outdoor 4% 4% Magazines 5% Radio 5% Cinema 4% Newspapers 13% In-Store 2% Internet 1% Note: Excludes classified ads, house ads, digital and cable TV Source: The Nielsen Company (Thailand) Limited Top 10 Ad Spending by Segments TV 62% Total market value of advertisement industry = THB 101.6bn 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% Historical Thai Ad Expenditures (THB bn) / / / /12 12/13 13/14 14/ Industry CAGR 1.9% /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 Traditional CAGR -2.2% OOH CAGR 8.4% 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% Note: Excludes classified ads, house ads, digital and cable TV Section 2.2: Media Business Source: The Nielsen Company (Thailand) Limited 26

27 Media Business: Financial Performance High Margins, No Leverage Operating revenues and Operating EBITDA Revenues by business unit (THB mn) Operating Revenue 2,795 Operating EBITDA 3,121 2,926 Office Buildings & Other Media 47% 39% 1, ,959 1,012 1,386 1,580 1,530 BTS-related Media 53% 61% FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 13/14 FY 14/15 Gross Profit Margin Key Financial Ratios FY 13/14 FY 14/15 OVERALL 61% 59% BTS-RELATED MEDIA 88% 83% OFFICE BUILDING & OTHERS 30% 23% 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 Section 2.2: Media Business Note: Ratios taken from VGI s consolidated financial statements 27

28 BTS SkyTrain Media Exclusive rights for the Core BTS SkyTrain Network KEY CONCESSION TERMS RIGHTS Exclusive rights for 23 stations on Core Network, 7 stations on BTS extension lines & all BTS trains In Trains & On-Stations Merchandising Area First right to renew contract and extend space on additional mass transit projects that BTSC is granted the rights to operate media space EFFECTIVE PERIOD Core Network: 18 May December extension stations: 6 May December 2029 DIGITAL MEDIA Platform Truss LED & Platform Screen Door Digital Screen inside the train STATIC MEDIA (ON BTS SKYTRAIN & PLATFORMS) CONCESSION FEE (PAYABLE TO BTSC) 5% - 20% of total revenues/year (an incremental increase of 5% every 5 years) fixed rate for 7 extension stations PAST SUCCESS BTS Media Revenue (THB mn) CAGR (4 years) = 19.5% 871 1,125 1,379 1,660 1,776 Train Body Wrap MERCHANDISING SPACE Cladding FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 Section 2.2: Media Business Merchandising Shop Merchandising Shop 28

29 Office Buildings and Other Media KEY CONTRACT TERMS OFFICE BUILDING MEDIA RIGHTS AND LENGTH OF CONTRACT Office Buildings 123 grade A 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 Digital Screen in Elevators OUTDOOR LED SCREENS Lift Wrap LICENSE FEE Revenue sharing and fixed rates PAST SUCCESS Changed to integrated network across all office buildings, increasing sales by 50% Rama 9 Junction Pratunam Junction CHULALONGKORN UNIVERSITY (CU) BUS Bundled Office Building Media with the Company s other media and sold as a package, increasing occupancy and driving sales by 100% Bus Body Wrap Bus Shelter Section 2.2: Media Business 29

30 Outdoor Media KEY CONTRACT TERMS MACO S MEDIA RIGHTS AND LENGTH OF CONTRACT Outdoor Media Expansion into Outdoor Media segment through holdings in other outdoor advertising companies 24.96% stake in Master Ad PCL (MACO; listed on SET) 20.0% stake in Aero Media Co., Ltd. (Aero Media manages advertising space across 13 airports under AOT and DCA) 12.4% holdings in Midas Global Media Company Limited (MIDAS; non-listed) Billboard Street Furniture ACCOUNTING METHOD Take equity method Transit Media Made-to-Order SYNERGY Sales synergies are created by bundling media packages with VGI s existing network MIDAS MEDIA VGI appointed as exclusive selling agents Knowledge sharing among highly experienced management team Section 2.2: Media Business LED Lightboxes 30

31 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 Group Profile Mass Transit Business Media Business Property Business Services Business 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

32 Property Portfolio PROPERTY BOOK VALUE BREAKDOWN LAND FOR DEVELOPMENT ALONG MASS TRANSIT ROUTE Land bank THB 2.1bn 27.9% TOTAL BOOK VALUE: THB 7.4BN 48.0% 24.1% Residential* THB 1.8bn Commercial THB 3.5bn ABSTRACTS PHY MO CHIT: LAND BANK** SITE AREA: 25,842SQM *Includes assets reclassified as held for sale of THB 1.4bn from Nuvo Line LIST OF LAND BANK Location Total Area (Rai) Total Area (sqm) Bangkok ,368.0 Samutprakarn ,671.6 Nakorn Ratchasima ,058,180.0 Chiang Rai ,992.0 Phuket ,740.0 Other Provinces ,372.0 Total 1, ,231,323.6 Section 2.3: Property Business Note: Data as of 30 Sep 2015 PHAYATHAI: LAND BANK SITE AREA: 10,526 SQM EASTIN GRAND HOTEL Sold to BTS-SIRI JVCo1 ABSTRACTS 66/1 THANA CITY GOLF & SPORTS CLUB SITE AREA: 511,712SQM Sold to U City **Mochit Land: 8,063 sqm was sold to BTS-SIRI JVCo1 and 17,779 sqm was sold to U City 32

33 Commercial and Residential Property COMMERCIAL PROPERTY REVENUE BREAKDOWN NO. OF KEYS UNDER HOTEL GROUP Others 13% U-Hotels 11% Thana City Golf 22% RESIDENTIAL PROPERTY FY 14/15 Commercial Property Revenue: THB 932mn Eastin Grand Sathorn 54% U Sathorn 543 Eastin Grand Sathorn 457 U Inchantree Kanchanaburi 86 U Chiang Mai Total keys Jun 2008 Nov 2010 Oct 2012 Dec 2014 Apr 2015 ABSTRACTS PHAHONYOTHIN PARK ABSTRACTS SUKHUMVIT 66/1 LOCATION: 250M FROM NEW BTS STATION LOCATION: 250M FROM BTS UDOMSUK SITE AREA: 33,420 SQM ( RAI) SITE AREA: 3,160 SQM ( RAI) LAND TENURE: FREEHOLD LAND TENURE: FREEHOLD AVERAGE SALE PRICE: THB 76,400 PER SQM AVERAGE SALE PRICE: 75,000 PER SQM # 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, , ,455 Section 2.3: Property Business TDC: THB 2,527MN (USD 81MN) Equity THB 732mn USD 24mn Deposit & Sales proceeds THB 196mn USD 6mn Debt THB 1,697mm USD 54mn # 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 PROJECT COMPLETED TDC: THB 296MN (USD 10MN) Equity THB203mn USD 7mn Deposit & Sales proceed THB 93mn USD 3mn 33

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 U CITY TRANSACTION 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 incomegenerating 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 For detailed information on the transactions, please refer to our Strategic Partnership for City Living presentation at: Section 2.3: Property Business 34

35 Property Update BTS-Sansiri Projects Launched in 2015 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 11bn in project value launched in 2015 Expected equity IRR 17% and NPAT margin 12% Project Name THE LINE Jatujak - Mochit THE LINE Sukhumvit 71 THE LINE Ratchathewi Distance from mass transit station 300m from BTS Mo chit 400m from BTS Prakanong 220m from BTS Ratchathewi Project value THB 5.7bn THB 2.0bn THB 2.9bn* No. of units 841 (43 floors) 291 (28 floors) 231 (38 floors) Avg. selling price per sqm THB 179k THB169k; fully furnished THB 266k* Land Area (Rai) *Approximate figures Intl. Roadshow / Domestic Presales May 2015 Aug 2015 Oct 2015 Construction Starts Mar 2015 May 2015 Jan 2016 Construction Completion Jan 2018 Jan 2017 May 2018 Transfer Starts Dec 2017 Nov 2016 May 2018 Transfer Completion Section 2.3: Property Business Feb 2018 Apr 2017 Jul

36 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 Group Profile Mass Transit Business Media Business Property Business Services Business 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

37 Overview of Services Business BANGKOK SMARTCARD SYSTEM (BSS) RABBIT TOP-UP CHANNELS 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. BTS Ticket Offices BRT Ticket Offices Over-the-Air AIS Kiosks Use on BTS SkyTrains & BRT Use in retail stores Auto Top-up w/ Co-branded Cards McDonald s Mini Mart Food Court Use with mobile devices supporting NFC technology >80 brand partners 4.9mn Rabbit cards in circulation (as of Dec 2015) Section 2.4: Services Business 37

38 Overview of Services Business CHEFMAN RESTAURANTS 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 Eastin Grand Sathorn Branch Royal Place 2 Branch Thana City Branch Express Branch at Royal Place 2 ABSOLUTE HOTEL SERVICES (AHS) 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 Number of rooms >8,900 10,000 Under AHS contracts 2014/ /16E Section 2.4: Services Business 38

39 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 Group Profile Mass Transit Business Media Business Property Business Services Business 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

40 BTSG Financial Performance FY 14/15 REVENUE & EBITDA CONTRIBUTION BY BU 8% 19% 41% 32% Revenue Contribution 1% 6% 47% 46% EBITDA Contribution REVENUE COMPARISON BY BUSINESS UNIT (THB mn) 2,077 2,274 Services Property Media Mass Transit FY 13/14 FY 14/15 3,121 2,926 2,934 1,355 (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 Section 3: Financial Summary ,532 Mass Transit Media Property Services Total 7,102 Consolidated P&L (THB mn) FY 14/15 FY 13/14 FY 12/13 FY 11/12 Operating revenues 7,102 8,532 10,375 7,720 Operating expenses 3,163 4,147 5,317 4,077 Non-recurring items , ,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 Debt Information (THB mn) 31 Mar Mar Mar Mar 12 Interest bearing debt 4,556 6,655 11,961 26,047 Net debt (5,556) (2,013) 8,447 24,714 Key financial ratios FY 14/15 FY 13/14 FY 12/13 FY 11/12 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 Interest bearing debt to equity 0.09x 0.11x 0.24x 0.71x 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 Book value per share (THB) Dividend yield (4) 6.38% 7.37% 4.71% 6.38% 40

41 Balance Sheet ASSSETS BREAKDOWN (THB MN) 76,757 66,812 Current assets 37,343 49% 26,003 39% LIABILITIES AND EQUITY BREAKDOWN (THB MN) Current liabilities Non-current liabilities 76,757 66,812 8,557 11% 6,795 8,612 11% 8,004 10% 12% Non-current assets 39,368 51% 40,809 61% Equity 59,542 78% 52,012 78% 31-Mar Mar Mar Mar-15 SHAREHOLDERS EQUITY DILUTION IMPACT Registered Capital (15,913.1mn THB 4.0) Issued and paid-up (11,919.3mn THB 4.0) THB mn 63,653 47,677 ESOP Type Outstanding warrants (mn) Exercise ratio (warrant : share) Exercise price (THB) Outstanding shares reserved for warrants (mn) % Dilution BTS-WA : 0.166* 4.220* % BTS-WB : % Others 3,860 Retained earnings (Deficits) 475 Total Shareholders Equity 52,012 as of 31 Mar 2015 Section 3: Financial Summary BTS-WC : 1 To be determined % BTS-W3 3, : , % Total 3, % * Adjusted under the conditions as stated in the terms and conditions of the warrants as of 13 Oct

42 2015/16 BTS Group Targets and CAPEX BTS GROUP TARGETS MASS TRANSIT 4 6% Ridership Growth 2% Average Fare Increase 3% O&M Revenue Growth BTS GROUP CAPEX (THB mn) FY 15/16 TOTAL CAPEX**: THB 1,910MN 1,220 MEDIA 26% Revenue Contraction (excl. Modern Trade Media) PROPERTY THB 620mn Residential Property Revenue THB 590mn* Commercial Property Revenue 105 Mass transit Media Property Services BTS Group SERVICES 5.0mn Rabbit Cards in circulation 6-9 additional ChefMan branches Section 3: Financial Summary *excludes BTS Assets revenues **excludes real estate development cost for Property business 2015/16 BTSGIF CAPEX is expected to be approx. THB 280mn (not included in BTS Group CAPEX) 42

43 Contents Section 1 Section 2 Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 3 Group Profile Mass Transit Business Media Business Property Business Services Business 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

44 Appendix 1: Core Network Concession Agreement Key terms and background 23 STATIONS, 23.5 KM IN CBD ALL INVESTMENTS MADE BY BTSC Connecting Bangkok s most important business and tourist destinations, serving as the backbone to all Bangkok s mass transit systems 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 AUTHORISATION EXCLUSIVE OPERATION RIGHT MINISTRY OF INTERIOR 30 YEARS CONCESSION 30 years of concession period ending 4 Dec 2029, approximately 17 years remaining BTSC CONCESSION AGREEMENT BMA 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 BTS SKYTRAIN MINISTRY OF 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 AUTHORISATION EXCLUSIVE OPERATION RIGHT INTERIOR 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. Appendix 1: Core Network Concession Agreement BTSC BTS SKYTRAIN CONCESSION AGREEMENT NET REVENUE TRANSFER AGREEMENT BMA BTSGIF 44

45 Appendix 2: Future Funding Requirements (Mass Transit) BTS Pipeline 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 : km 123,336 2,400 Total equity required by BTS Group = THB 49.3bn 36.0km 74, km 9,129-9, km 20,056-20, km 16.3km 42, km 23,152 25,500 24, ,500 12,000 2,400 18,849 15,000 2,400 12,250 46,099 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 Borommaratchachonnani) Chan) Grey Line (Watcharaphon - Thong Rama Lo) 4) Total Rolling Stock E&M Civil works Source: Office of Transport and Traffic Policy and Planning (OTP), Mass Rapid Transit Authority of Thailand (MRTA) and Company estimates Appendix 2: Future Funding Requirements (Mass Transit) 45

46 Appendix 2: Future Funding Requirements (Mass Transit) PPP Gross Cost (E&M only) Dark Green North (Mochit Saphan Mai) FINANCING AND REPAYMENT OF E&M THB mn 2,119 2,100 2,027 1,953 1,879 1,806 1,732 1,658 1,584 1,511 KEY ASSUMPTIONS YEAR (395) (349) (302) (256) (209) (163) (116) (70) (23) (2,570) (2,581) (3,946) 1) 3 to 4-year investment period 2) 10-year repayment from govt. 3) Interest rate (neutral) 4) D/E of 1.5x (6,734) E&M Interest expense Reimburse from Gov. Interest Income from Gov. O&M REVENUE KEY ASSUMPTIONS YEAR ) 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 Appendix 2: Future Funding Requirements (Mass Transit) 46

47 Appendix 3: BTS-W3 Term Sheet WARRANTS TERMS AND CONDITIONS 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 NO. OF WARRANTS EXERCISE RATIO EXERCISE PRICE EXPECTED MAXIMUM PROCEEDS TO EXISTING SHAREHOLDERS AT THE RATIO OF 3 EXISTING BTS SHARES : 1 BTS-W3 3,944,626,464 UNITS 1 BTS-W3 TO 1 NEW COMMON SHARE OF BTS THB PER SHARE THB 47,336MN Appendix 3: BTS-W3 47

48 Appendix 4: BTSC s Quality Management System ISO 14001: 2004 ENVIRONMENTAL MANAGEMENT SYSTEMS CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV). OHSAS : 2007 OCCUPATIONAL HEALTH AND SAFETY ZONE CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV). LLOYDS REGISTER RAIL LLOYDS REGISTER RAIL S BEST PRACTICE MODEL IMPLEMENTATION. ISO 9001 : 2008 QUALITY MANAGEMENT SYSTEMS CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV). Appendix 4: BTSC s Quality Management System 48