BTS Group Holdings PCL

Transcription

1 13 February 2014

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 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. 2

3 Agenda Section 1 BTSG 3Q 13/14 FINANCIAL PERFORMANCE Section 2 Section 3 BUSINESS UPDATES BTSGIF 3Q 13/14 FINANCIAL PERFORMANCE (separate presentation) APPENDICES 3

4 Financial Highlights IMPROVED PROFITABILITY YoY Recurring pre-tax profit up 60% YoY and 2.4% QoQ to THB 1.0bn Recurring net profit grew 81% YoY to THB 563.1mn Recurring net profit improvement: recurring net profit margin rose to 22.5% (11.2% in 3Q 12/13) WEAKENED PROFITABILITY QoQ One time tax charge Media business slowdown BTS GROUP VISION 2018 To be Thailand s leading Mass Transit Developer & Operator 3Q 13/14 RIDERSHIP RECORD 53.9mn TRIPS, increased 7.1% YoY STRONG RIDERSHIP GROWTH 8.9% YTD (31 Jan) - within FY TARGET 7-10% BALANCE SHEET STRENGTH THB 42.7bn excess cash / liquid investments Cash Balance of THB 11.0bn Current Investments of THB 25.4bn Long term Investments of THB 6.3bn Leverage reduced: Net debt / equity reduced to (0.07)x Section 1: BTSG 3Q 13/14 Financial Performance BTS DIVIDEND YIELD (LTM)* 7.45% >> BTS DAILY TRADED VALUE (LTM) THB 609.2mn ($19.0mn) SET50 DIVIDEND YIELD (LTM) 3.51% * Sum of the gross DPS that have gone ex-dividend over the past 12 months, divided by stock price as of 11 Feb

5 3Q 13/14 Overview P&L SNAPSHOT Income Statement (THB mn) 3Q 13/14 3Q 12/13 % YoY 2Q 13/14 % QoQ 9M 13/14 9M 12/13 % YoY Operating Revenues 1 2,116 2,725 (22.3%) 2,333 (9.3%) 6,991 7,352 (4.9%) Gross operating profits 1,179 1,264 (6.7%) 1,241 (5.0%) 3,719 3, % Operating EBITDA ,260 (30.6%) 920 (4.9%) 2,771 3,678 (24.7%) Recurring net profit before MI % 763 (26.2%) 2, % Accounting EBITDA 3 1,301 1,960 (33.6%) 1,609 (19.1%) 17,167 4, % Net income (loss) (49.9%) 959 (53.2%) 12,232 1, % Gross operating profit margin (%) 55.7% 46.4% 53.2% 53.2% 49.1% EBITDA margin (%) 54.0% 56.1% 55.6% 79.6% 55.9% Recurring net profit margin (%) 22.5% 11.2% 28.3% 34.6% 11.2% Operating EBITDA margin (%) 41.3% 46.2% 39.4% 39.6% 50.0% 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 3Q 13/14 OPERATING REVENUE BREAKDOWN Mass Transit 25% Services 2% Media 38% Property 35% Section 1: BTSG 3Q 13/14 Financial Performance OPERATING REVENUE COMPARISON (YoY) (THB mn) 2,725 (1,006) 49 (66%) 7% 74% % 2,115 3Q 12/13 Mass transit Media Property Services 3Q 13/14 5

6 9 Months Cash Flow Snapshot (THB mn) Proceeds from sale of net fare-box revenue to BTSGIF and treasury management 13,313 (8,731) Debt repayment and dividend payment Improved profit, Abstracts PHY transferred, higher interest income, and reduced interest expense 2,901 10,998 * 3,513 Beginning cash (31/3/13) CFO CFI CFF Ending cash (31/12/13) (30/9/13) * excluding THB 31.7bn liquid investments Section 1: BTSG 3Q 13/14 Financial Performance 6

7 Mass Transit (as if no BTSGIF)* OPERATING PERFORMANCE Mass transit (THB mn) 3Q 13/14 3Q 12/13 YoY 2Q 13/14 QoQ Revenue 1,811 1,530 18% 1,761 3% Fare-box revenue 1,443 1,259 15% 1,417 2% Other revenue % 344 7% Costs of revenue % 887 7% Gross profit % 874 (1%) Operating EBITDA 1, % 1,221 (3%) HISTORICAL AVG FARE AND RIDERSHIP Gross margin (%) 47.6% 43.2% 49.6% Operating EBITDA margin (%) 65.4% 59.3% 69.3% * Includes 100% of fare-box revenue and O&M HISTORICAL OPERATING REVENUE (THB mn) O&M (THB mn) , , Section 1: BTSG 3Q 13/14 Financial Performance 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 10/11 10/11 10/11 10/11 11/12 11/12 11/12 11/12 12/13 12/13 12/13 12/13 13/14 13/14 13/14 1, Farebox (THB mn) 1, , , , , , Q 11/12 1Q 12/13 KEY FACTORS 2Q 12/13 3Q 12/13 Ridership (mn trips) 4Q 12/13 1Q 13/14 2Q 13/14 Average fare (THB/trip) Quarterly Ridership increased 7.1% YoY to 53.9mn trips Average Fare increased 7.1% YoY to THB 26.8 per trip Key growth factor: i) organic growth ii) the commencement of 4 stations of the Silom line (Bang Wa) extension and iii) new carriages into service (all 4-car trains across the network) O&M revenue rose by 35.7% YoY to THB 367mn mainly from additional service income from Silom line extension (full quarter effect from Pho Nimit (S9) to Talat Phlu (S10) and partial income from Wutthakat (S11) and Bang Wa (S12) Costs & SGA increased 8.2% YoY or THB 81mn due to higher operating costs and depreciation tied to increased ridership Operating EBITDA margin rose to 65% (59% in 3Q 12/13) as costs and SG&A increased less than the revenue growth 3Q 13/14 7

8 Media OPERATING PERFORMANCE OPERATING REVENUE BREAKDOWN Media (THB mn) 3Q 13/14 3Q 12/13 YoY 2Q 13/14 QoQ Revenue % 847 (6%) Costs of revenue (3%) 315 (9%) Gross Profit % 532 (4%) Operating EBITDA % 452 (4%) Gross margin (%) 64.1% 60.3% 62.8% Operating EBITDA margin (%) 54.4% 50.9% 53.3% Office Buildings & Others 6% BTS - Related 54% Modern Trade 40% HISTORICAL OPERATING REVENUE (THB mn) Section 1: BTSG 3Q 13/14 Financial Performance 465 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 10/11 10/11 10/11 10/11 11/12 11/12 11/12 11/12 12/13 12/13 12/13 12/13 13/14 13/14 13/ KEY FACTORS BTS-related Media Revenue increased 18% YoY (to THB 435mn) from i) increase in the On-Station revenue (Platform Truss LEDs) ii) the increase in rent for long-term contracts of merchandising space and iii) the increase in occupancy of small rental shops on the stations. Modern Trade Media Revenue decreased 4% YoY and 13% QoQ (to THB 319mn) from the impact from economic slowdown and political unrest, which consequently led to delayed advertising spending. Office Building and Other Media Revenue decreased 6% YoY (to THB 44mn), driven by economic slowdown and political unrest, which consequently led to delayed advertising spending. 8

9 Property OPERATING PERFORMANCE REVENUE BREAKDOWN Property (THB mn) 3Q 13/14 3Q 12/13 YoY 2Q 13/14 QoQ Operating revenue % 917 (18%) Costs of revenue % 543 (22%) Gross Profit % 374 N/A Operating EBITDA N/A 198 N/A Gross margin (%) 43.3% 37.5% 40.8% Operating EBITDA margin (%) 21.2% 11.9% 21.6% Thanacity Golf 7% Commercial Projects 34% Residential Projects 59% HISTORICAL REVENUE (THB mn) THB 1, THB 1,849 Proceeds from sale of Kamala Proceeds from sale of non-core land THB 554 Proceeds from sale of Nana 210 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 10/11 10/11 10/11 10/1111/1211/1211/1211/1212/1312/1312/1312/1313/1413/1413/14 Section 1: BTSG 3Q 13/14 Financial Performance 155 1, , KEY FACTORS Operating Revenue Revenue increased by THB 319mn YoY to THB 749mn from i) 131 transferred units of Abstracts PHY ii) revenue from Eastin Grand Hotel Sathorn Operating costs increased by THB 156mn YoY to THB 425mn from i) transferred units of Abstracts Phahonyothin Park ii) costs related to Eastin Grand Hotel SG&A rose by THB 52mn to THB 204mn mainly from i) expenses related to Abstracts PHY units transferred ii) operating expenses related to Chef Man Restaurants Operating EBITDA margin improved to 21.2% (11.9% in 3Q 12/13) and net operating profit reached THB 105mn 9

10 Services OPERATING PERFORMANCE OPERATING REVENUE BREAKDOWN Service (THB mn) 3Q 13/14 3Q 12/13 YoY 2Q 13/14 QoQ Revenue % 50 (10%) Costs of revenue % 31 (6%) Gross Profit 16 (10) N/A 19 N/A Operating EBITDA 2 (23) N/A 11 N/A Gross margin (%) 35.2% 37.6% Operating EBITDA margin (%) 3.4% 22.0% RABBIT 75% CARROT 25% HHT 0% HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS Revenue Revenue increased by THB 28mn YoY to THB 45mn from the growth in royalty fee from the co-branded Rabbit card between the Company and business partner Costs & SGA Costs & SGA increases to THB 58mn (cost THB 29mn and SG&A THB 29mn) largely due to depreciation and staff cost Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 10/11 10/11 10/11 10/1111/1211/1211/1211/1212/1312/1312/1312/1313/1413/1413/14 Reclassify Thana City Golf course from services to property in 4Q 11/12 Section 1: BTSG 3Q 13/14 Financial Performance 10

11 3Q 13/14 Balance Sheet ASSET BREAKDOWN (THB MN) 67,291 80,511 LIABILITIES AND EQUITY BREAKDOWN (THB MN) 67,291 80,511 40, % Current assets 52, % Equity 50, % 63, % Non-current assets 15, % 40, % Current liabilities Non-current liabilities 9, % 8, , % 8, % 11% 31-Mar Dec Mar Dec-13 KEY RATIOS Net Debt to Equity Net Debt to Operating EBITDA Interest Coverage Current Ratio 3Q 13/14: (0.07)x 3Q 12/13: 0.21x 3Q 13/14: (1.04)x 3Q 12/13: 2.15x 3Q 13/14: 6.54x 3Q 12/13: 5.44x 3Q 13/14: 4.69x 3Q 12/13: 1.36x Section 1: BTSG 3Q 13/14 Financial Performance 11

12 Agenda Section 1 BTSG 3Q 13/14 FINANCIAL PERFORMANCE Section 2 Section 3 BUSINESS UPDATES BTSGIF 3Q 13/14 FINANCIAL PERFORMANCE (separate presentation) APPENDICES 12

13 Mass Transit Update GREEN LINE EXTENSIONS UPDATE WONGWIAN YAI-BANG WA: 4 stations, 5.3km Extension fully operational on 5 Dec 2013 BMA started collecting flat fare of THB on 6 January 2014 BEARING-SAMUT PRAKARN: 9 stations, 12.8km Civil works progress: >20% (as of 31 Dec 2013) Expected civil works completion: Nov 2015 Bidding for operating contract expected latest in MO CHIT-SAPHAN MAI-KU KHOT: 16 stations, 18.4km Cabinet approved civil works construction on 15 Oct 2013 Bidding for civil works on 11 Apr 2014 Expected to start construction in Nov 2014 Bidding for operating contract expected in late 2015 Section 2: Business Updates 13

14 Grey Line PROJECT DETAILS ESTIMATED TIMELINE WATCHARAPHON RAMA 9 BRIDGE Total route length of 26km Monorail Project under BMA authority WATCHARAPHON JAN 2014 MAR 2014 Project already approved by Bangkok governor Hire consultant for EIA & feasibility study to determine Phase I route 10 months JAN 2015 Feasibility report approval process by Office of National Environment Board (ส ำน กงำนคณะกรรมกำรส งแวดล อมแห งชำต ) 6 months JULY 2015 OCT 2015 OPEN FOR BIDDING (both Civil and E&M) 3 months Construction starts 2018 Operation year 2 years (at least) construction time RAMA 9 BRIDGE Section 2: Business Updates Source: Traffic and Transportation Department, BMA 14

15 New Light Green Extension PROJECT DETAILS ESTIMATED TIMELINE BANG WA TALING CHAN Total route length of 7km (6 stations) Project under BMA authority JAN 2014 (Latest 2015) MID-2014 (Mid-2015) Awaiting project approval by Bangkok governor Hire consultant for EIA & feasibility study 8 months TALING CHAN END OF 2014 (End of 2015) MID-2015 (Mid-2016) Feasibility report approval process by Office of National Environment Board (ส ำน กงำนคณะกรรมกำรส งแวดล อมแห งชำต ) 6 months Route approval process by Cabinet 6 months BANG WA Section 2: Business Updates EARLY 2016 (Early 2017) 2018 (2019) OPEN FOR BIDDING (both Civil and E&M) Operation year 2 years construction time Source: Traffic and Transportation Department, BMA 15

16 Political Situation KEY EVENTS & RIDERSHIP IMPACT RIDERSHIP IN CORE NETWORK ( 000 PASSENGERS/DAY) % RIDERSHIP CHANGE FROM FY12/13 AVG. WEEKDAY RIDERSHIP Highest record of ridership on Sunday +45.3% Highest record of weekday ridership +22.7% +24.2% +14.7% +13.5% Avg. Weekday Ridership (FY 2012/13) 1 NOV NOV DEC DEC JAN FEB 2014 House of Representatives passed amnesty bill Multiple protests around Bangkok Protestors marched to Government House House of Representatives dissolution Anti-government mass rally around Bangkok Bangkok Shutdown (6 of 7 protest sites situated near BTS SkyTrain routes) General election date Section 2: Business Updates 16

17 Beijing Subway Line 16 PROJECT DETAILS BEIJING SUBWAY LINE 16 Total route length of 50km (29 stations) Expected operation date: 2018 Consortium partner: CITIC Construction Co., Ltd. (100% subsidiary of CITIC Group Corporation) Previous experience in construction of mass transit projects: Iran Teheran Metro and Algeria East-to- West Expressway Expected bidding result announcement: May 2014 INVESTMENT DETAILS PPP INVESTMENT SCHEME Private sector to invest in E&M systems Rolling stock Signaling systems Communication systems Power supply systems Automatic Fare Collection systems Depot and Workshop equipment Platform Screen Doors Others 30-year O&M concession E&M development cost: RMB 15bn (approx. THB 82bn) TENDER INFORMATION TENDER BACKGROUND Beijing Infrastructure Investment Co., Ltd. (BII) invited 3 public investors to submit tender proposal Three parties: Beijing Mass Transit Railway Operation Corporation Limited (current operator of 10 main lines & 4 sub lines) Beijing MTR Corporation Limited (current operator of 2 lines) BTS-CITIC Consortium Section 2: Business Updates 17

18 Beijing Subway Line 16 Line 16 Section 2: Business Updates Map Source: Wikipedia 18

19 Media Update NEW CAPACITY IN BTS-RELATED MEDIA Train Capacity 16% additional train capacity in FY 14/15 Full-year effect of 35 C-car trains Full-year effect of 5x 4-car trains 13% additional train capacity in FY 19/20 Expected full-year effect of 7X 4-car trains New Products Capacity Platform Truss LEDs FULL YEAR EFFECT: FY 14/15 Platform Screen Doors FULL YEAR EFFECT: FY 14/15 E-Posters FULL YEAR EFFECT: FY 14/15 Section 2: Business Updates 19

20 Media Update VGI enters Roadside Media sector JOINT VENTURE WITH DEELIGHT MULTIMEDIA EXAT Concession (66 Lightboxes & LEDs) PROJECT DETAILS Partner: Shareholding Structure in JV: Location: Contract Length: Total Initial Investment: Section 2: Business Updates Deelight Multimedia (affiliate of Dee Lighting International) 30% VGI, 70% Deelight Bangkok 3 Years (3 years renewable) ~THB 150mn 20

21 Media Update SECURING 5-YEAR CONTRACTS WITH BIG C Extended 5Yrs Contracts with Big C until Sales Floor Non-sales Floor Radio 2018 VGI Media Coverage of Big C in Thailand* Expanded branch coverage from 309 branches to 427 branches NORTH NORTHEAST CENTRAL BKK EAST 23 No. of branches: Large Medium Small Total As of Sep As of Dec SOUTH 18 Section 2: Business Updates *Data includes only large and medium formats as of 31 Dec

22 Property Update RESIDENTIAL PROPERTY ABSTRACTS PROJECT PHAHONYOTHIN PARK LOCATION: SITE AREA: LAND TENURE: AVERAGE SALE PRICE: TDC: 250M FROM NEW BTS STATION 33,420 SQM ( RAI) FREEHOLD THB 76,400 PER SQM THB 2,527MN TRANSFERRED: 75% (as of 31 Dec 13) Presold (as of 31 Dec 13): 89% COMMERCIAL PROPERTY U SATHORN HOTEL 4 Stars LOCATION: SITE AREA: LAND TENURE: SATHORN, BANGKOK RAI LEASEHOLD, 30 YEARS LEASE CONTRACT WITH TREASURY DEPT. COMMERCIAL PROPERTY REVENUE BREAKDOWN Others 32% U-Hotels 7% Thana City Golf 16% EASTIN GRAND SATHORN 4 Stars LOCATION: SITE AREA: LAND TENURE: SATHORN, BANGKOK, DIRECT ACCESS TO BTS SURASAK 3,828 SQM ( RAI) FREEHOLD Eastin Grand Sathorn 45% 3Q 13/14 Commercial Property Revenue: THB 307mn SIZE: 3 FLR, 86 ROOMS SIZE: 33 FLR, 396 ROOMS CONSTRUCTION PROGRESS: 51% (as of 31 Dec 13) EXPECTED OPENING: NOV 2014 TDC: THB 690MN Section 2: Business Updates TYPE: TOTAL NLA: Business/Leisure Grand Hotel 17,561 SQM Opened: Oct 12 3Q 13/14 average occupancy rate: 85% 22

23 Services Update NUMBER OF RABBIT CARDS mpay RABBIT SIM million cards >1.0 Exceeded target >1.8 >1.5 >1.2 > (target) AIS mpay Rabbit SIM official launch on 1 Nov 2013 with over-the-air (OTA) top-up function Prepaid & postpaid sim Adult & Student type 2.5k users (as of 31 Dec 13) DEC 12 MAY 13 JUL 13 OCT 13 DEC 13 MAR 14 COMMON TICKETING SYSTEM MOU signed with Office of Transport and Traffic Policy and Planning (OTP), BTS, BMCL and BSS on 11 Dec 2013 to develop common ticketing system Interoperable with BTS, BMCL, MRTA, SRT-Airport Rail Link AUTO TOP-UP Automatically top-up value in BBL Rabbit Card and Be 1 st Smart Rabbit Card to preset amount when card balance is lower than the threshold Launch in Mar 2014 BSS as one of co-issuer of cards for mass rapid transit Target launch: end of 2014 Section 2: Business Updates 23

24 Agenda Section 1 BTSG 3Q 13/14 FINANCIAL PERFORMANCE Section 2 Section 3 BUSINESS UPDATES BTSGIF 3Q 13/14 FINANCIAL PERFORMANCE (separate presentation) APPENDICES 24

25 BTSC Capital Reduction Under Section 40(4)(d)of the REVENUE CODE, payment received as a result of reduction of capital of a company or juristic partnership in so far as the payment does not exceed the sum of profits and reserves of the company or partnership is considered as assessable income and therefore subject to corporate income tax. มำตรำ 40(4)(ง) แห งประมวลร ษฎากร ก ำหนดให เง นลดท นของบร ษ ทหร อห ำงห นส วนน ต บ คคลเฉพำะส วนท จ ำยไม เก นกว ำก ำไรและเง นท ก นไว รวมก น ถ อเป น เง นได พ งประเม น ซ งอย ในบ งค บต องเส ยภำษ เง นได น ต บ คคล In 3Q 13/14, BTSC reduced its capital by THB 12,050.4mn to THB 4,016.8mn while BTSC s account has THB 2,086.7 mn Legal Reserve. As a result, BTSG is required to recognise income tax expense of THB 406.7mn (20% tax rate x 97.46% shareholding x THB 2,086.7mn legal reserve) from receiving proceed of this capital reduction. BTSC FS as of 30 Jun 13 Non-listed Company Listed Company BTSC FS as of 31 Dec 13 Profit Retained Earnings THB 16,839.0mn DIVIDEND Subject to tax Tax-exempt if related shares have been held for at least 3 months before and after dividend payment date Legal Reserve THB 2,086.7mn Share Capital THB 16,067.1mn CAPITAL REDUCTION Subject to tax Tax-exempt Subject to tax Tax-exempt RE THB 973.1mn Legal Reserve THB 2,086.7mn Share Capital THB 4,016.8mn Appendix 1: BTSC Capital Reduction 25

26 3Q 13/14 Income Tax Breakdown (Unit : THB mn) Income tax from BTSC Capital Reduction Reversal of income tax from capital gain on sale of VGI shares in the prior period to present in equity (91.4) Recording Deferred Tax Asset (DTA) (100.4) Normal Income tax Total Effective tax rate 21.4% P/L Appendix 2: 3Q 13/14 Income Tax Breakdown 26

27 Capital gain on sale of NFR to BTSGIF NET GAIN ON SALE OF NFR TO BTSGIF OF THB 13,498MN (Unit : THB mn) Sale of NFR to BTSGIF considered as true sale of intangible asset TAS 37: BTSG agrees to absorb any SBT on interest payable by BTSGIF, if not waived by Revenue Department. Full provision since April Expect expense c.thb 300mn over 3 years 61,399 (39,458) TAS 18: Implicit Management Fee for Operation of Core Network. Amortise as gain over remaining concession period c.thb 36mn p/a TAS28: BTSG sold 2/3 of rights to NFR so can only recognise gain on 2/3 sold. THB 6.7bn amortised as gain over concession period (1,080) (614) (6,749) 13,498 Net cash received from sale to BTSGIF De-recognition of Core mass transit net assets* Provision for Special Business Tax (SBT) Deferred Management Fee Income Elimination of gain on sale to BTSGIF Gain on sale of future net fare-box revenues *Net of project costs allocated to Media business THB 2,371mn to be amortised over concession period. Expect amortisation of THB 95mn over next 3 years. Subsequent Measurement Method N/A N/A Revalued Quarterly Amortised as gain using straight line N/A N/A P/L Impact THB 300mn/3yrs THB 36mn/yr Appendix 3: Capital gain on sale of NFR to BTSGIF 27

28 Share of net profit from BTSGIF SHARE OF NET PROFIT FROM BTSGIF CALCULATION METHOD Less A B 1/3 net investment income from BTSGIF Amortisation of 1/3 of original project cost (THB 14,084mn) over remaining 16 years = SHARE OF NET PROFIT FROM BTSGIF EQUITY METHOD APPLIED TO PROJECT COST AMORTISATION A B Transactions (THB mn) BTSG Portion (33%) Investment in associates 14,084 Add Net investment income 44,767 Less Dividend (24,300) Less Capital reduction (20,466) Amortisation of project cost 14,084 BTSGIF (100%) 61, ,300 (72,901) (61,399) 61,399 Amortised by ridership until 0 Revalued until 0 Note: Components A and B will impact P&L Appendix 4: Share of net profit from BTSGIF 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