BTS Group Holdings PCL

Transcription

1 BTS Group Holdings PCL 12/13 earnings presentation 15 February 2013 prepared by Investor Relations department

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. Persons who attend this presentation or view this presentation are required to make themselves aware of and adhere to any and all restrictions applicable to them. 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This presentation may only be attended by, and this presentation may only be viewed by, persons in member states of the European Economic Area who are qualified investors within the meaning of article 2(1)(e) of the prospectus directive (2003/7/ec) ( Qualified Investors ) and persons who (i) are outside the United Kingdom or (ii) are persons falling within articles 19(5) or 49(2)(a) to (d) of the financial services and markets act 2000 (financial promotion) order 2005 (all such persons (together with Qualified Investors) being referred to as Relevant Persons ). This presentation must not be acted on or relied on by persons who are not Relevant Persons and any investment or investment activity to which this presentation relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. 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 forwardlooking 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. 12/13 earnings presentation prepared by Investor Relations department 2

3 Agenda Section 1 Section 2 Financial Performance Business Update Appendices 12/13 earnings presentation prepared by Investor Relations department 3

4 12/13 Overview P&L snapshot 12/13 (THB mn) Income Statement (THB mn) 12/13 % YoY Operating Revenues 2,725 1,991 37% Gross operating profits 1, % EBITDA 1,960 1,124 74% Operating EBITDA 1,310 1,069 22% EBT 1, % Net income(loss)* 1, % Gross Operating Profit Margin (%) 46% 46% EBITDA margin (%) 56% 53% Operating EBITDA margin (%) 48% 54% Operating Net profit margin (%) 16% 13% *to equity holders of the parent 12/13 Operating revenue breakdown Operating revenue comparison (YoY) Total operating revenue grew 37% YoY 2, (THB mn) , % N/A 50% 14% Mass transit Media Property Services 12/13 9 Months Cash Flow Snapshot Mass Transit 56% Media 28% Property 16% Services 0% THB 5,428mn received from sale of investment (VGI, Kamala, and Nana) 1,333 Beginning cash (31/3/12) 3,321 4,666 (6,806) THB (6,718)mn used in debt repayment and dividend payment 2,516 CFO CFI CFF Ending cash (31/12/12) 12/13 earnings presentation prepared by Investor Relations department 4

5 12/13 Highlights Major developments by business unit in 12/13 MASS TRANSIT Revenue grew 14% YoY to THB 1,529mn New quarterly ridership record: total quarterly ridership grew 16% YoY to 50mn passengers in 12/13 New average quarterly record: passengers of 608,564 per weekday, representing 15% YoY growth and 3% QoQ MEDIA PROPERTY SERVICES Continued strong growth: revenue grew 50% YoY to THB 749mn High contribution from BTS-related business: revenue from BTS business increased 24% YoY to THB 369mn Strong increase in Modern Trade business: revenue from Modern Trade business grew 83% YoY to THB 333mn Improved margins: operating EBITDA margin improved YoY to 53% compared to 51% Operating revenue increased by THB 284mn YoY to THB 430mn due to the increased revenue from i) 55 transferred units of Abstract PHY, and ii) the opening of Eastin Grand Hotel Sathorn Received THB 1,849mn for the divestment of Kampoo Property Company Limited (Nana) Revenue increased by THB 9mn to THB 17mn QoQ driven by increased revenue from HHT construction services and rabbit card sales 12/13 earnings presentation prepared by Investor Relations department 5

6 Mass transit Operating performance Operating revenue breakdown Mass transit (THB mn) 12/13 YoY 2Q 12/13 QoQ Revenue 1,529 1,345 14% 1,507 1% Costs of revenue % % Gross Profit % % EBIT % % Operating EBITDA % 1,021-10% Gross margin (%) 43% 42% 50% EBIT margin (%) 35% 35% 42% Operating EBITDA margin (%) 60% 64% 68% Core System 82% O&M S7&S8 5% O&M E14 11% O&M BRT 2% Historical operating revenue (THB mn) /10 4Q 09/ Q 990 2Q 1,039 1,038 1,038 4Q 1Q 1,326 1,345 2Q 1,507 1,468 1,529 1,394 4Q 1Q 12/13 2Q 12/13 12/13 Revenue Key factors breakdown YoY Growth Factor: 1) Ridership increased 16% to 50mn passengers (a new record in operational history) 2) Increase in revenue from i) SKV line extension (On Nut Bearing), ii) organic growth, and iii) lower base effect in relation to flooding Cost increased 12% YoY or THB 92mn due to i) higher depreciation, and ii) employee cost EBITDA margin fell to 60% mainly due to an absence of nonrecurring other income A new record of average weekday ridership of 608,564 passengers 12/13 earnings presentation prepared by Investor Relations department 6

7 Media Operating performance Operating revenue breakdown Media (THB mn) 12/13 YoY 2Q 12/13 QoQ Revenue % 725 3% Costs of revenue % 286 4% Gross Profit % 439 3% EBIT % 351 0% Operating EBITDA % 381 4% Gross margin (%) 60% 59% 61% EBIT margin (%) 47% 45% 48% Operating EBITDA margin (%) 53% 51% 53% Office Buildings & Others 6% BTS - Related 49% Modern Trade 45% Historical operating revenue (THB mn) / Q 09/ Q 2Q Q 467 1Q Q 465 4Q 637 1Q 12/ Q 12/ /13 Key factors BTS-related Media 1) Revenue increased 24% YoY (to THB 369mn) from i) increased capacity of train body and in-train media, ii) increase in occupancy in static and digital advertising areas, and iii) price and occupancy increase in merchandising areas Modern Trade Media 1) Revenue increased 83% YoY (to THB 333mn) from i) additional contracts signed with Tesco Lotus and Big C, and ii) a lower base in relation to the flooding Office Building and Other Media 1) Revenue increased 131% YoY (to THB 47mn), driven by i) additional rights in 4 office buildings, ii) new bundling packages 12/13 earnings presentation prepared by Investor Relations department 7

8 Property Performance Revenue breakdown Property (THB mn) 12/13 YoY 2Q 12/13 QoQ Revenue 2, % 1,837 24% Costs of revenue 1, % 1,381-2% Gross Profit % % EBIT 727 (37) N/A 255 N/A Operating EBITDA 59 (12) 605% (2) N/A Gross margin (%) 41% 35% 25% EBIT margin (%) 32% -26% 14% Operating EBITDA margin (%) 3% -8% 0% * Included sales of land at Nana Historical revenue (THB mn) Proceeds from sale of Nana 80% Key factors Abstracts Projects 8% Commercial Projects 10% Thana City Projects 2% / Q 09/ Q 134 2Q Q THB 1,600 1Q 2Q Proceeds from sale of Nana THB 1,849 Proceeds from sale of Kamala Q 155 1Q 12/13 1, Q 12/13 1, /13 Property Revenue 1) Revenue increased by THB 2,133mn YoY to THB 2,279mn mainly due to divestment of Nana Operating revenue 1) Operating revenue increased by THB 284mn YoY to THB 430mn from i) 55 transferred units of Abstracts PHY, and ii) increase in revenue from newly completed Eastin Grand Hotel Sathorn SG&A 1) SG&A rose 71% YoY by THB 63mn mainly from i) expenses related to Abstract PHY units transferred, and ii) depreciation expenses of Eastin Grand Hotel 12/13 earnings presentation prepared by Investor Relations department 8

9 Services Operating performance Operating revenue breakdown Service (THB mn) 12/13 YoY 2Q 12/13 QoQ Revenue 17 0 N/A 8 110% Costs of revenue % 21 30% Gross Profit (10) - N/A (12) -22% EBIT (36) (17) 115% (32) 13% Operating EBITDA (20) (14) N/A (18) N/A Gross margin (%) -57% N/A -153% EBIT margin (%) -212% N/A -392% Operating EBITDA margin (%) -118% N/A -227% Historical operating revenue (THB mn) HHT 48% Key factors BSS 52% Revenue 1) Revenue increased by THB 9mn QoQ to THB 17mn from i) HHT construction services, and ii) the sale of rabbit cards (common ticketing cards for Bangkok s mass transit network plus retail e- payment card) SG&A 1) SG&A rose to THB 27mn in 12/13 due to the establishment of the rabbit card and Carrot Rewards programme 4Q 1Q 2Q 4Q 1Q 2Q 4Q 1Q 2Q 09/10 09/10 12/13 12/13 12/13 Reclassify Thana City Golf course from services to property in 4Q 12/13 earnings presentation prepared by Investor Relations department 9

10 12/13 Balance sheet Assets breakdown 65,289 65,563 Liability and equity breakdown 65,289 65,563 Non-current Assets 57,007 87% 57,811 88% Equity 48,303 74% 38,953 60% Current assets 8,282 13% 7,752 12% Non-current liabilities Current liabilities 17,181 17% 10,885 9% 6,101 9,429 26% 14% 31-Dec Sep Dec Sep-12 Key ratios Net Debt to Equity Net Debt to Operating EBITDA 1 Interest Coverage 2 Current Ratio 12/13: 0.21x 2Q 12/13: 0.55x 12/13 : 2.07x 2Q 12/13 : 4.54x 12/13 : 5.70x 2Q 12/13 : 3.51x 12/13 : 1.36x 2Q 12/13 : 1.00x 1 Annualised last 12 months operating EBITDA 2 Operating EBITDA divided by finance cost (period only) 12/13 earnings presentation prepared by Investor Relations department 10

11 Improved Leverage Ratios Convertible Bonds Details (as of 7 th February 2013) Principal THB 10,000mn Liability Net Debt and to Equity equity (X) breakdown 0.21 Total CBs converted THB 9,581mn (1,871 mn shares) 0.20 Outstanding CBs THB 419mn 0.19 Conversion Price THB 5.00 per share (revised on 29 Jan 13) 1 Conversion period from 1 Jan to 7 Feb All the components in equity remain unchanged from 12/13 except for issue and fully paid capital 3 Annualised last four quarters of Operating EBITDA 12/13 Based on latest conversion 1 If CBs are all converted 2 Net Debt to Operating EBITDA 3 (X) Liabilities/Equity VS Liabilities/Assets (x) /13 Based on latest conversion 1 If CBs are all converted 2 12/13 Based on latest conversion 1 If CBs are all converted 2 12/13 earnings presentation prepared by Investor Relations department 11

12 Business Update 12/13 earnings presentation prepared by Investor Relations department 12

13 Mass Transit Update Network Expansion: New lines expected to bid in 2013 (Total of 138.3km) Red Line (10.0km) (Rangsit Thammasat University) Green Line (18.4km) (Mo Chit Saphan Mai - Kukot) Pink Line (36.0km) (Khae Rai Pak Gred Min Buri) Orange Line (20.0km) (Thailand Cultural Centre Min Buri) Light Red Line (14.0km) (Salaya Taling Chan) Light Red Line (19.0km) (Bang Sue Phaya Thai Makkasan Hua Mark) SRT Red Line (6.0km) (Taling Chan Siriraj) Airport Link Red Line (7.9km) (Phaya Thai Bang Sue) Green Line (7.0km) (Samut Prakan Bang Pu) Sources: OTP & SRT 12/13 earnings presentation prepared by Investor Relations department 13

14 Mass Transit Update New Stations and New Trains in Service Silom Line: Pho Nimit: Trial Operation on 12 Jan 2013 Talat Phlu: Trail Operation on 14 Feb 2013 Sukhumvit Line: 13 new carriages already installed All trains on SKV line to be 4-car trains by FY 12/13 Sources: OTP & SRT 12/13 earnings presentation prepared by Investor Relations department 14

15 Media Update Expected Eastin 2013/14 Grand Expected Revenue Hotel Revenue Growth (13/14) Growth 2013/14 Revenue Contribution 20% BTS 40% Modern Trade 20% Off. Bldg & Others 49% FY 12/13 45% 45% FY 13/14 49% 6% 6% 30% YoY Revenue Growth BTS Modern Trade Office Bldg BTS Modern Trade Office Bldg Development on Platform Screen Doors Installation started at Siam station in Feb 2013 Expected completion (9 stations; 10 platforms) by Dec /13 earnings presentation prepared by Investor Relations department 15

16 Commercial Property Update Eastin Grand Hotel May Dec 12 Occupancy: 73% 87% 84% 85% 81% U Kanchanaburi Apr Dec 12 Occupancy: 75% 86% 78% 77% 86% 90% 64% 62% 60% 71% 62% 66% 58% 45% May Jun Jul Aug Sep Oct Nov Dec U Chiangmai Apr Dec 12 Occupancy: 70% 91% 89% 78% 71% 72% 73% 59% Apr May Jun Jul Aug Sep Oct Nov Dec Awards Eastin Grand U - Kanchanaburi 11 th best hotel in Bangkok (out of 726 hotels) rated by Trip Advisor World Travel Awards 2011 & 2012: Thailand s Leading Romantic Resort 44% 49% Apr May Jun Jul Aug Sep Oct Nov Dec U - Chiangmai Historical Architectural Conservation Hotel 2009/11 Thailand Boutique Award 2010 Outstanding in total experience category in Northern region 12/13 earnings presentation prepared by Investor Relations department 16

17 Services Update Rabbit and Carrot Update Result (as of Dec 12) Target (Dec 13) >900,000 Rabbit Cardholders >250,000 Carrot Program Member >1.5 mn Rabbit Cardholders >600,000 Carrot Program Member 12/13 New Partners Rabbit New Partners Carrot New Partners >30 Rabbit brand partners (as of Dec 12) >20 Carrot brand partners (as of Dec 12) Rabbit SIM Card Signed exclusive NFC contract with AIS in Dec Main Functions: 1) Card balance checking, 2) Card usage history, and 3) Over the air (OTA) top up Upcoming Projects Project Partner Expected Date (Calendar Year) 1 NFC AIS Co-branded debit/credit card 3 Rabbit at Express Stores & Supermarkets BBL 1Q 2013 Tesco Lotus 1Q 2013 Tops Supermarket 2Q 2013 Big C 4Q /13 earnings presentation prepared by Investor Relations department 17

18 Appendices 12/13 earnings presentation prepared by Investor Relations department 18

19 Income Statement Income Statement Income Statement 12/13 % YoY 2Q 12/13 % QoQ (THB mn) Operating revenues 2,725 1,991 37% 2,434 12% Other recurring incomes % 36 39% Total recurring revenues 2,775 2,078 34% 2,470 12% Operating costs 1,461 1,075 36% 1,179 24% Selling and Administrative expenses % % Income (loss) from investment in associates % 1 119% EBITDA 1,960 1,124 74% 1,635 20% Operating EBITDA 1,310 1,069 22% 1,329-1% Finance cost % % Non-operating gain (loss) % % EBT 1, % % Income tax % 88 14% Minority interests % % Net income(loss) to equity holders of the parent 1, % % EPS (THB per share) % % 12/13 earnings presentation prepared by Investor Relations department 19

20 Balance Sheet Balance Sheet Balance Sheet 31-Dec Mar-12 Change Change (%) (THB mn) Assets Current assets 8,282 7, % Non-current assets 57,007 59,021 (2,014) -3% Total assets 65,289 66,889 (1,599) -2% Liabilities Current liabilities 6,101 8,338 (2,237) -27% Non-current liabilities 10,885 21,619 (10,734) -50% Total liabilities 16,986 29,957 (12,970) -43% Shareholder s equity Total shareholder s equity 48,303 36,932 11,371 31% Total assets Total liabilities Total shareholder equity a decrease in assets as BTS Group used cash proceeds from land sales to repay debt a decrease in liabilities from the first tranche repayment of BTSC debenture, the continuing conversion of CB, and repayment of bank loans an increase in shareholder equity from i) increase in paid up capital mainly from the additional shares from CBs conversion, ii) gain from sale of VGI 12/13 earnings presentation prepared by Investor Relations department 20

21 Cash flow Statement Cash Flow Cash Flow (for the 9 months) ended 31-Dec Dec-11 Change Change (%) (THB mn) Beginning cash 1,333 1,825 (492) -27% Net cash provided from operating activities 3,321 1,292 2, % Net cash provided from investing activities 4,666 (2,398) 2, % Net cash used from financing activities (6,806) 654 (7,460) -1140% Cash and cash equivalent 2,516 1,375 1,142 83% Cash Flow Net cash provided from operating activities Key items i) reduction in accrued income (receipt of payment from Treasury Department ii) reduction in O&M receivables iii) improved profit Net cash provided from investing activities i) sale of investment in subsidiaries (Kamala, Nana, and VGI) Net cash used from financing activities i) debt repayment, ii) dividend payment 12/13 earnings presentation prepared by Investor Relations department 21

22 BTS Stock Dashboard BTS Data Pricing Jan-13 12/13 Price Change (%) 9.10 % 26.5 % Liquidity Daily Value (THB mn) 1, Daily Value (USD mn) Market Cap (as of 31 Jan 13) Market Cap (THB mn) 85,853.3 Market Cap (USD mn) 2,876.0 SET Data Pricing Jan-13 12/13 Index Change (%) 5.9 % 7.2 % Liquidity Daily Value (THB mn) 48, ,035.6 Daily Value (USD mn) 1, ,011.8 Market Cap (as of 31 Jan 13) Market Cap (THB bn) 12,279.8 Market Cap (USD bn) Ranking in SET 50 MARKET CAP #33 AVG DAILY TURONVER 1 #5 1 Average daily turnover of 1 month (1-31 Jan 2013) 12/13 earnings presentation prepared by Investor Relations department 22

23 Q&A 12/13 earnings presentation prepared by Investor Relations department 23