BTS Group Holdings PCL

Transcription

1 14 August 2015

2 Disclaimer Investment involves risk. Prospective should understand the characteristics of Securities and study information about BTS Group Holdings Public Company Limited (the Company ) before making a decision to invest in Securities. This presentation is for information purposes only and is intended only for the initial direct attendee of the presentation. It may not be reproduced or redistributed to any other person. It shall not and does not constitute either an offer to purchase or buy or a solicitation to purchase or buy or an offer to sell or exchange or a solicitation to sell or exchange any securities of BTS Group Holding PCL (the "Company") or any of its subsidiaries in the United States of America or in any other jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its existence, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. This presentation is not to be relied upon in any manner as legal, tax or any other advice and shall not be used in substitution for the exercise of independent judgment and each person made aware of the information set-forth hereof shall be responsible for conducting its own investigation and analysis of the information contained herein. Except where otherwise indicated, the information provided in this presentation is based on matters as they exist as of the date stated or, if no date is stated, as of the date of preparation and not as of any future date, and the information and opinions contained herein are subject to change without notice. None of the Company nor any of its subsidiaries accepts any obligation to update or otherwise revise any such information to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof. None of the Company or any of its subsidiaries or any of their respective directors, officers, employees or agents shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation and any and all such liability is expressly disclaimed. The information contained herein must be kept strictly confidential and may not be reproduced or redistributed in any format without the express written approval of the Company. Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to the Company s corporate plans, strategies and beliefs and other statement that are not historical facts. These statement can be identified by the use of forward-looking terminology such as may, will, expect, intend, estimate, continue, plan or other similar words. The statements are based on the assumptions and beliefs of the Company s management in light of the information currently available to the Company. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this Presentation is, or should be relied on as promise or representation of the Company as to the future. 2

3 Agenda Section 1 BTSG 15/16 FINANCIAL PERFORMANCE Section 2 Section 3 BUSINESS UPDATES BTSGIF 15/16 FINANCIAL PERFORMANCE (separate presentation) APPENDICES 3

4 15/16 Financial Highlights IMPROVED PROFITABILITY Improved accounting net profit and net profit margin due to extraordinary gain from sale of property assets: 15/16: % YoY to THB 3,075.5mn (NPM 59.1%) Although recurring net profit (THB 507.6mn) declined 34.0% due to softened operating results and share of loss in joint ventures BALANCE SHEET STRENGTH THB 23.75bn excess cash and liquid investments* Leverage: Net debt / equity at (0.00)x GAIN (BEFORE TAX) ON SALE OF PROPERTY ASSETS TO U CITY OF THB 3,458.5MN RESILIENT MASS TRANSIT-RELATED REVENUE: Net farebox revenue +8.2% YoY O&M revenue +4.1% YoY COMMITTED MINIMUM DIVIDEND OF: THB 8BN IN FY 15/16 (equivalent to 6.7% dividend yield based on share price of THB 9.95 as of 4 Aug 2015) BTS DIVIDEND YIELD (LTM)** 6.21% >> SET50 DIVIDEND YIELD (LTM)*** 3.13% BTS DAILY TRADED VALUE (LTM) (as of 4 Aug 2015) THB 436.1mn (USD 13.3mn) * Excess cash and liquid investments exclude sinking fund and include cash balance of THB 4.63bn, current investments of THB 9.64bn, long term investments of THB 8.33bn and restricted deposits of THB 1.15bn ** Dividend yield based on share price as of date prior to Board of Directors approval of relevant dividend payment *** Sum of the gross DPS that have gone ex-dividend over the past 12 months, divided by stock price as of 4 Aug 2015 Section 1: BTSG 15/16 Financial Performance 4

5 15/16 Overview P&L SNAPSHOT Income Statement (THB mn) 15/16 % YoY 4Q % QoQ Operating Revenues 1 1,538 1,744 (12)% 1,647 (7)% Gross operating profits (6)% 952 (7)% Operating EBITDA (9)% 691 (9)% Recurring net profit before MI (34)% 780 (35)% Accounting EBITDA 3 4,244 1, % % Net income (loss) 4 3, % % Gross operating profit margin (%) 57.7% 54.2% 57.8% Accounting EBITDA margin (%) 81.6% 44.4% 39.8% Recurring net profit margin (%) 29.5% 33.7% 38.4% Operating EBITDA margin (%) 41.0% 39.5% 41.9% 1 operating revenue of 4 BUs & share of net profit from BTSGIF 2 excluding interest income 3 including profit from discontinued operation 4 to equity holders of the parent 15/16 OPERATING REVENUE BREAKDOWN OPERATING REVENUE COMPARISON (YoY) (THB mn) Mass Transit 39% Media 35% 1, (215) (86) 38 1,538 11% -28% -27% 30% Services 11% Section 1: BTSG 15/16 Financial Performance Property 15% Mass transit Media Property Services 15/16 5

6 3 Months Cash Flow Snapshot (THB mn) 10, * (5,413) Treasury management, loans to related parties (962) Increase in VGI stake 68** 4,626*** Beginning cash (31/3/15) CFO CFI CFF OTHERS Ending cash (30/6/15) * after tax (THB 32.8mn) and interest expense (THB 50.7mn) ** cash and cash equivalents of BTSA and KKP (presented as discontinued operation at the end of the year) *** excluding BTSC sinking fund and THB 19.1bn liquid investments Section 1: BTSG 15/16 Financial Performance 6

7 Mass Transit As Reported OPERATING PERFORMANCE OPERATING REVENUE BREAKDOWN Mass transit (THB mn) 15/16 YoY 4Q QoQ Revenue % % O&M revenue % % Share in BTSGIF % % Costs of revenue % % Gross profit % 369 7% Operating EBITDA % 374 6% Share in BTSGIF 35% 15/16 Gross margin (%) 65.4% 61.7% 68.5% Operating EBITDA margin (%) 66.1% 62.3% 69.4% O&M 65% HISTORICAL OPERATING REVENUE (THB mn) O&M (THB mn) Farebox (THB mn) Share of NP in BTSGIF (THB mn) 1,263 1,259 1,238 1, KEY FACTORS O&M revenue rose by 4.1% YoY to THB 394.0mn mainly from the contractually agreed increase in operating fee of the Sukhumvit extension and Silom extension Share of net profit in BTSGIF increased 25.2% YoY to THB 208.4mn from the increase in core network performance and revision of amortisation method for fund set-up cost Costs remained unchanged YoY (rose 0.1% YoY to THB 208.7mn) Operating EBITDA margin improved to 66.1% (62.3% in ) as costs remained flat YoY whilst operating revenue increased 2Q 3Q 4Q 2Q 3Q 4Q 2Q Section 1: BTSG 15/16 Financial Performance 3Q 4Q 15/16 7

8 % -40.0% -90.0% % % Mass Transit Core Network (Quarter) HISTORICAL RIDERSHIP & % GROWTH (YOY) HISTORICAL AVERAGE FARE & % GROWTH (YOY) 2.0% 2.1% 4.7% -1.2% 9.0% 6.8% 0.5% 0.4% -0.7% -0.7% Q 3Q 4Q 15/16 2Q 3Q 4Q 15/16 Ridership (mn trips) Passenger Growth (YoY), RHS Average Fare (THB/trip) Average Fare Growth (YoY), RHS Quarterly Ridership increased 9.0% YoY to 55.9mn trips Average Fare dereased 0.7% YoY to THB 26.9 per trip Section 1: BTSG 15/16 Financial Performance 8

9 Media OPERATING PERFORMANCE OPERATING REVENUE BREAKDOWN Media (THB mn) 15/16 YoY 4Q QoQ Revenue (28)% 605 (11)% Costs of revenue (43)% 216 (18)% Gross profit (18)% 389 (7)% Operating EBITDA (16)% 379 (16)% Office Buildings & Others 10% BTS - Related Modern Trade 81% 9% 15/16 Gross margin (%) 67.1% 58.8% 64.3% Operating EBITDA margin (%) 58.8% 50.2% 62.7% HISTORICAL OPERATING REVENUE (THB mn) Q 749 3Q 683 4Q Q 798 3Q 632 4Q Q Section 1: BTSG 15/16 Financial Performance 780 3Q 605 4Q /16 KEY FACTORS Overall Media revenue fell 28.5% YoY to THB 539.2mn from the discontinuation of Modern Trade Media BTS-related Media Revenue grew 1.9% YoY to THB 436.2mn from increase in occupancy of on-station (both static and digital) and digital media in-train Modern Trade Media Revenue decreased 82.4% YoY to THB 50.5mn from the termination of Modern Trade Media business Office Buildings and Other Media Revenue rose 32.2% YoY to THB 52.4mn from additional contracts Operating EBITDA margin improved to 58.8% (50.2% in ) from lower contribution of lower margin Modern Trade business 9

10 Property* * Transactions related to ChefMan Restaurants were reclassified from Property business to Services business in 4Q and applied retrospectively since 2Q OPERATING PERFORMANCE OPERATING REVENUE* BREAKDOWN Property* (THB mn) 15/16 YoY 4Q QoQ Operating Revenue (27)% 364 (36)% Costs of revenue (27)% 193 (28)% Gross profit (28)% 170 (45)% Operating EBITDA (65)% 43 (68)% Commercial & Others 69% 15/16 Residential 31% Gross margin (%) 39.9% 40.3% 46.8% Operating EBITDA margin (%) 5.9% 12.3% 11.8% HISTORICAL OPERATING REVENUE* (THB mn) 155 Operating revenue 1, Q 1, Q 710 4Q 950 Proceeds from land sale Q 686 3Q 436 4Q 319 Sale of assets to U City THB 9,469 Nana land THB 1,849 Sale of non-core land Mo Chit land Kamala THB 554 THB 1,411 THB 1, Q Section 1: BTSG 15/16 Financial Performance 1, Q 364 4Q 9, /16 KEY FACTORS Recognised net gain from U City transaction of THB 2,528.5mn Operating revenue dropped by 27.1% YoY to THB 233.0mn mainly from both Residential and Commercial Property Residential property revenue decreased by 45.0% YoY to THB 72.9mn mainly from decline in sales of Abstracts Phahonyothin Park Commercial property revenue fell 13.3% YoY to THB 160.1mn from EGS following the disposal of EGS to U City on 20 Apr 2015 Operating costs decreased by 26.5% YoY to THB 140.1mn from costs and expenses related to transferred units of Abstracts Phahonyothin Park as well as costs and expenses of EGS Operating EBITDA margin contracted to 5.9% (12.3% in ) as a result of decrease in sales of Abstracts Phahonyothin Park and the divestment of EGS to U City 10

11 Services* * Transactions related to ChefMan Restaurants were reclassified from Property business to Services business in 4Q and applied retrospectively since 2Q OPERATING PERFORMANCE OPERATING REVENUE* BREAKDOWN Services* (THB mn) 15/16 YoY 4Q QoQ Revenue % % Carrot 2% Costs of revenue % 116 7% Gross profit % 23 70% Operating EBITDA (23)% (19) (196)% Rabbit 37% 15/16 ChefMan 50% Gross margin (%) 23.9% 28.2% 16.5% Operating EBITDA margin (%) 11.4% 19.3% N/A Others 11% HISTORICAL OPERATING REVENUE* (THB mn) KEY FACTORS Q 45 3Q 46 4Q Q 107 3Q 108 4Q Q 138 3Q 139 4Q /16 Revenue Revenue increased by 30.2% YoY to THB 163.7mn from i) increase in revenue from ChefMan Restaurants of 26.6% YoY to THB 82.2mn and ii) revenue growth from BSS of 23.7% YoY to THB 60.1mn primarily from the marketing and co-promotion of Rabbit cards of THB 10.4mn Costs & SGA Costs & SGA increased by 36.7% YoY or THB 45.0mn to THB 167.6mn (cost THB 124.6mn and SG&A THB 43.1mn). Key costs and SG&A items were mainly from staff costs, food & beverage cost at ChefMan Restaurants. Section 1: BTSG 15/16 Financial Performance 11

12 Balance Sheet ASSET BREAKDOWN (THB MN) LIABILITIES AND EQUITY BREAKDOWN (THB MN) 66,811 69,801 66,811 69,801 Current assets 26,003 39% 20,555 29% Current liabilities Non-current liabilities 6,795 10% 8,581 8,004 12% 7,215 12% 10% Non-current assets 40,808 61% 49,246 71% Equity 52,012 78% 54,005 78% 31-Mar Jun Mar Jun-15 KEY RATIOS Net Debt to Equity Net Debt to Operating EBITDA Interest Coverage Current Ratio 15/16: (0.00)x : 0.01x 15/16: (0.01)x : 0.13x 15/16: 7.87x : 5.16x 15/16: 2.40x : 4.20x Section 1: BTSG 15/16 Financial Performance 12

13 Agenda Section 1 BTSG 15/16 FINANCIAL PERFORMANCE Section 2 Section 3 BUSINESS UPDATES BTSGIF 15/16 FINANCIAL PERFORMANCE (separate presentation) APPENDICES 13

14 (2.50) 14. 0% 12. 0% 10. 0% 8.0 % 6.0 % 4.0 % 2.0 % 0.0 % Mass Transit Update Jul 15 Ridership Update JUL 15 RIDERSHIP UPDATE Ridership (mn trips) % YoY ridership growth 12.4% 11.3% % 7.4% 7.0% Mar-15 Apr-15 May-15 Jun-15 Jul-15 JUL 2015: Jul 15 ridership = 20.2mn trips, +11.3% YoY, +3.9% MoM Jul 15 avg fare = THB 27.1 / trip, +1.5% YoY Avg Jul 15 weekday ridership = 723,543 trips, +11.8% YoY Section 2: Business Updates YTD (Apr Jul) 15/16: YTD fare-box revenue = +9.5% YoY YTD ridership = 76.1mn trips, +9.6% YoY YTD fare = THB / trip, +0.3% YoY* *compared to THB / trip (FY avg fare) 14

15 Mass Transit Update Dual Track Project Line Distance (km) 1. Laem Chabang-Chachoengsao (Red Line) Chachoengsao-Kaeng Khoi (Blue Line) Map Kabao-Jira Junction (Purple Line) Jira Junction-Khon Kaen (Orange Line) 185 Total 502 Section 2: Business Updates 15

16 Media Update FY 15/16 Target Revision FY 15/16 PREVIOUS TARGET GUIDANCE FY 15/16 NEW TARGET GUIDANCE 12% 9% 5% 8% THB 2,600mn BTS Office Building Others THB 2,200mn BTS Office Building Others 80% 86% GROWTH BY SEGMENTS GROWTH BY SEGMENTS -12% Total Revenue -26% Total Revenue +30% Total Revenue (excl. Modern Trade) +10% Total Revenue (excl. Modern Trade) +16% BTS-related Media +5% BTS-related Media -100% Modern Trade Media - discontinued -100% Modern Trade Media - discontinued +20% Office Building Media +30% Office Building Media +1,092% Other Media +260% Other Media Section 2: Business Updates 16

17 2, , , , % 80. 0% 75. 0% 70. 0% 65. 0% 60. 0% 55. 0% 50. 0% 45. 0% 40. 0% Property Update RESIDENTIAL PROPERTY ABSTRACTS PROJECT PHAHONYOTHIN PARK LOCATION: SITE AREA: LAND TENURE: AVERAGE SALE PRICE: TDC: COMMERCIAL PROPERTY 250M FROM NEW BTS STATION 33,420 SQM ( RAI) FREEHOLD THB 76,400 PER SQM THB 2,527MN TRANSFERRED: 92% (as of 30 Jun 15) Presold (as of 30 Jun 15): 100% 15/16 REVPAR AND OCCUPANCY COMMERCIAL PROPERTY REVENUE BREAKDOWN Others 18% 15/16 Commercial Property Revenue: THB 160mn HISTORICAL HOTEL OCCUPANCY Eastin Grand Sathorn 23% U-Hotels 29% Thana City Golf 30% 81.0% 2,308.5 RevPar (THB per Night) 80.6% 69.9% 1, ,398.7 Occupancy rate 78.9% 72.7% 1, , % 82.9% 85.0% 74.9% 63.0% 81.8% 81.7% 85.1% 78.9% U Chiang Mai U Inchantree Eastin Grand Sathorn Section 2: Business Updates U Sathorn Blended 2Q 3Q 4Q 2Q 3Q 4Q 15/16 17

18 Property Update THE LINE Presale Update Both THE LINE projects at Jatujak Mochit and Sukhumvit 71 were completely sold out within the pre-sale period Foreign participation reached 48% for The Line Sukhumvit 71, a record high for Sansiri and the Thai residential property market Both properties sold at significantly higher prices than comparable projects in the respective vicinities Pre-sale period: May 2015 Foreign participation: 14% Pre-sale period: 8-9 Aug 2015 Foreign participation: 48% Section 2: Business Updates 18

19 Property Update BTS-Sansiri Project Launches 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 25bn 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 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) * * Intl. Roadshow/ Domestic Presales May 2015 Aug 2015 Oct 2015 Feb 2016 Oct 2015 *Approximate figures Nov 2015 Construction Starts Mar 2015 May 2015 Jan 2016 Nov 2014 Mar 2016 Apr 2016 Construction Completion Jan 2018 Nov 2016 Apr 2018 Oct 2017 Mar 2019 Mar 2019 Transfer Starts Feb 2018 Dec 2016 May 2019 Nov 2017 Apr 2019 Apr 2019 Transfer Completion Jun 2018 Feb 2017 Jul 2019 Apr 2018 Jul 2019 Jun 2019 Section 2: Business Updates 19

20 Agenda Section 1 BTSG 15/16 FINANCIAL PERFORMANCE Section 2 Section 3 BUSINESS UPDATES BTSGIF 15/16 FINANCIAL PERFORMANCE (separate presentation) APPENDICES 20

21 The Rabbit Mission World To become the leading brand in digital lifestyle and payment services in Thailand Appendix 1: The Rabbit Mission 21

22 Rabbit World The 4 Pillars CARD d Common Ticketing and Offline Payment PAY Online e-wallet Payment ONLINE d Lifestyle ecommerce Portal FINANCE d Personal Finance Portal REWARD Big Data Customer Loyalty Appendix 1: Rabbit World The 4 Pillars 22

23 Rabbit Card & Rabbit Pay To become the leader of online and offline payment systems in Thailand Offline Card Online Market Penetration by M+ rabbitcard holders 3M+ rabbitpay accounts 15K+ acceptance points 2M+ Transactions/day 200M+ settlement value/day Pay Appendix 1: Rabbit Card & Rabbit Pay 23

24 Rabbit Online & Rabbit Finance To become the largest lifestyle and financial portal in Thailand LIFESTYLE MEDIA PORTAL & PRODUCTS COMPARISON Market Penetration Target: 30+ ecommerce partners Celebrities Money Beauty Motor 20 content categories Woman Men Movie Sport 10M+ visits/month (2016) 25M+ visits/month (2020) DISCOVER PRODUCTS / SERVICES E-Commerce/ Telco Partner Travel Food Calssified FINANCIAL PRODUCTS Loans Credit Cards Insurance Accumulated Portfolio by 2020: 4Bn+ insurance premium 5Bn+ loan portfolio Appendix 1: Rabbit Card & Rabbit Pay 24

25 Rabbit Reward BIG DATA with 360 DEGREE CUSTOMER DATA PROFILE CARD PAY ONLINE FINANCE SPENDING DATA SHOPPING DATA FINANCIAL DATA TARGETED ADVERTISING PERSONALIZED COMMERCE REWARD SYSTEM 8.8 Million Rabbit members by 2020 Appendix 1: Rabbit Reward 25

26 Capital Gain Calculation U City Transaction SEPARATE FS (BTSG ONLY) FV of investment in U City THB mn Remarks BTSG CONSOL FS THB mn Remarks 9,468.8 FV of investment in U City 9,468.8 Less: BV of investments in BTSA & KKP (4,754.1) BTSA & KKP BV (at cost) Less: net assets of BTSA & KK (4,095.2) BTSA & KKP NBV Capital Gain 4,714.8 Capital Gain 5,373.7 Less: tax of capital gain (930.0) 20% on agreed selling price as of 20 Apr 15 Less: Elimination (1,915.2) 35.64% in U City Net capital gain (after tax) 3,784.8 Capital Gain (after elimination) 3,458.5 Less: tax of capital gain Net capital gain (after tax) (930.0) 2,528.5 Tax from separate FS Appendix 2: Capital Gain Calculation U City Transaction 26

27 15/16 Effective Tax Rate BTSG Consolidated FS BTSG CONSOL FS WITH GAIN FROM U CITY (THB mn) WITHOUT GAIN FROM U CITY (THB mn) Earnings before tax (EBT) 4, REMARKS Excluding THB 3,458.5mn capital gain (before tax) from U City Add back: profit from discontinued operation Total earnings before tax (A) 4, Income tax expenses (B) 1, Excluding THB 930.0mn tax on capital gain from U City Effective tax rate (B) / (A) 25.5% 18.2% Appendix 3: 15/16 Effective Tax Rate 27

28 Breakdown Share of Income / (Loss) from Investments in Joint Ventures & Associates & Subsidiary Shares on Investments in Joint Ventures % Effective Holding (30 Jun 15) Amount (THB mn) Amount per FS (THB mn) MIDAS 21.59% (5.2) Share of loss from investments in joint ventures (86.9) BTS-SIRI JV projects 50.00% (81.7) Share of income from investments in associates Total (86.9) Total share of net income in JV/Asso 70.1 Shares on Investments in Associates % Effective Holding (30 Jun 15) Amount (THB mn) BTSGIF 33.33% MACO 17.96% 4.0 Shares of net income in BTSGIF (including in Mass Transit operating revenue) Shares of net loss in Associates/ JV Amount per IR Pack (THB mn) (138.3) (excluding shares in BTSGIF) U CITY 35.64% (57.2) Total share of net income in JV/Asso 70.1 AHS 50.00% 1.7 Total Shares on Investments in Subsidiary % Effective Holding (30 Jun 15) Amount (THB mn) VGI 71.97% N.A. Appendix 4: Breakdown of Share of Income (Loss) from Investments 28

29 Thank You 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: 29