BTS GROUP HOLDINGS PCL - INVESTOR PRESENTATION JULY 2019
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BTS GROUP HOLDINGS PCL INVESTOR PRESENTATION JULY 2019
IR Contact
Address: BTS Group Holdings PCL
IR Department
15th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd.
Chomphon, Chatuchak, Bangkok, Thailand 10900
Telephone: +66(0) 2273 8611-15 Fax: +66(0) 2273 8610
Email: ir@btsgroup.co.th Website: www.btsgroup.co.th
Disclaimer
This document has been prepared and distributed by the Investor Relations Department of BTS Group Holdings PCL (“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.
BTS Group Investor Presentation Prepared by BTS Group IR 2
Contents
Section
1 BTS Group in Brief & Strategy & Outlook
2 Business Segment Profiles
• Mass Transit Business
• Media Business
• Property Business
• Services Business
3 Corporate Information
4 Financial Summary
5 Appendices
BTS Group Investor Presentation Prepared by BTS Group IR 3
BTS Group Overview
4 Business Units with Mass Transit as our core
BTS Group Holdings PCL (BTSG)
A privately-owned conglomerate that engages in 4 business units; Mass Transit, Media, Property and Services. Listed on the Stock
Exchange of Thailand (SET), BTSG is a constituent member of the SET50 “Bluechip” Index, MSCI Asia Pacific Index, FTSE4Good Emerging
Markets Index and Dow Jones Sustainability Indices (DJSI).
MASS TRANSIT MEDIA PROPERTY SERVICES
FY 2018/19 OPERATING REVENUE CONTRIBUTION
MEDIA
11%
MASS TRANSIT Total of PROPERTY
86% THB 47,923mn 1%
SERVICES
2%
BTS Group Investor Presentation Prepared by BTS Group IR 4
Section 1: BTS Group in Brief & Strategy & Outlook
Strategy and 5-Year Growth Targets
Mass transit led strategy : full growth phase
STRATEGY
As a mass transit led conglomerate, the company’s key focus is on securing new mass transit lines which are authorised or set by the
government at both municipal and national levels. We capture further value from opportunities which cascade down to our other
independently operating business units in Media, Property and Services.
5-YEAR OUTLOOK
Operating Revenue Net Recurring Profit (after MI) 5-Year Targeted CAPEX
31% 29% THB 131 bn
5Y CAGR 5Y CAGR
THB 31.8bn THB 5.1bn
93% or THB 123bn
THB 8.2bn THB 1.4bn spent on all existing
FY 16/17 FY 21/22E FY 16/17 FY 21/22E
and newly-secured
mass transit lines
* Operating revenue includes share of net profit (loss)
from associated companies and JVs
BTS Group Investor Presentation Prepared by BTS Group IR 5
Section 1: BTS Group in Brief & Strategy & Outlook
Bangkok Rail Mass Transit Market Overview
Aggressive rail market share growth in Bangkok
MASTER PLAN: 515.2KM IN 2029, 33% MARKET SHARE IN 2037 RAIL MASS TRANSIT MARKET SHARE1
515.2km in 2029
Singapore Tokyo
46% 48%
Hong Kong Bangkok
49% 13%
BANGKOK MASS TRANSIT MARKET SHARE
Others*
13%
79% Rail Mass Transit
Bus
* Van, Ferry and Commuter train
1. Source: OTP (http://www.otp.go.th/uploads/tiny_uploads/
Includes MRTA and BMA projects DataStatistics/2562/25611012-SumData01.pdf),
Singapore’s Land Transport Authority, Hong Kong’s Transport
Sources: Office of Traffic Policy
Department, MTR Corporation Limited, SMRT Corporation
and Planning, Bangkok MetropTransport and olitan Administration
Limited, Japan Statistic Bureau
BTS Group Investor Presentation Prepared by BTS Group IR 6
Section 1: BTS Group in Brief & Strategy & Outlook
Bangkok Rail Mass Transit Network
Immature network, 176km under construction
OPERATING LINES: 121.6KM, 85 STATIONS BY 3 OPERATORS WEEKDAY RIDERSHIP MARKET SHARE IN 2018 (JAN-DEC)
121.6km in 2018
Purple line : 23km Blue line : 21km
BTS BEM
31%
62% 1.2mn trips 371,447 trips*
741,056 trips
TOTAL AVERAGE
WEEKDAY RIDERSHIP ARL
7%
80,000 trips*
*BEM ridership excludes Purple line. BTS and BEM based on company’s ridership reported on website
as of 2018 and ARL is based on information as of DEC 18.
48.9km 44.2km 28.5km
BTS Group Investor Presentation Prepared by BTS Group IR 7
Section 1: BTS Group in Brief & Strategy & Outlook
Contents
1 BTS Group in Brief & Strategy & Outlook
Section
Business Segment Profiles
2
Mass Transit Business
3 Corporate Information
4 Financial Summary
5 Appendices
BTS Group Investor Presentation Prepared by BTS Group IR 8
BTS Lines
4 Lines - covering a total of 133.4km by 2021 (2.7 times from 48.9km in 2018)
BTS NETWORK: 133.4KM (115 STATIONS)
Line km Station Route
Core Network 23.5 23 Mo Chit – On Nut (17.0km)
EXT. ZONE 2
Northern Green Line National Stadium – Saphan
Mo Chit - Khu Khot Taksin (6.5km)
17.8km
PINK
Khae Rai – Min Buri Extension 7.5 6 Saphan Taksin – Bang Wa
OPERATING
34.5km Zone 1
48.9 KM
CORE NETWORK Extension 5.3 5 On Nut – Bearing
Mo Chit – On Nut Zone 1
17.0km
YELLOW Extension 12.6 9 Bearing – Kheha
National Stadium –
Lad Prao – Sam Rong
Saphan Taksin Zone 2 (South)
30.4km
6.5km
Extension 17.8 16 Mo Chit - Khu Khot
Zone 2 (North)
UNDER CONSTRUCTION
EXT. ZONE 1 Gold 1.8 3 Krung Thonburi BTS
84.5 KM
On Nut – Bearing Station – Khlong San
5.3km
EXT. ZONE 1
Saphan Taksin Pink 34.5 30 Khae Rai – Min Buri
– Bang Wa
7.5km
GOLD PHASE 1 Yellow 30.4 23 Lad Prao – Sam Rong
Krung Thonburi BTS
Station – Khlong EXT. ZONE 2
San 1.8km Southern Green Line Total 133.4 115
Bearing – Kheha
12.6km
BTS Group Investor Presentation Prepared by BTS Group IR 9
Section 2.1: Mass Transit Business
BTS Lines
Evolution since 1999
1999:Core Network 2012: Green Line Ext.1 2018, 2020E: Green Line Ext.2 2021E: Pink and Yellow
23.5km 12.8km 30.4km 64.5km
Routes Dark Green: Mo Chit – On Nut Dark Green: On Nut - Bearing Southern Green: : Samrong – Kheha Pink: Khae Rai – Min Buri
Light Green: National Stadium – Light Green: Saphan Taksin – Northern Green : Mo Chit - Khu Kot Yellow: Lad Prao - Samrong
Saphan Taksin Bang Wa
Length/ Stations 23.5km / 23 stations 12.8km / 11 stations 30.4km / 25 stations 64.5km / 53 stations
Authority BMA BMA BMA MRTA
Contract Type PPP Net Cost & O&M Contract O&M Contract O&M Contract PPP Net Cost with Subsidy
Contract Term • 30 Years (Dec 1999 - Dec 2029) 30 Years (2012 - 2042) 25 Years (2017 - 2042) 30 Years (2021 - 2051)
for PPP Net Cost
• 13 Years (2029-2042) for O&M
Contract
Southern: Operating /
Status Operating Operating Oct 2021E
Northern: 2020E
Commencement
Timeline 1999 2021E
2012 2018 2019 2020E
Core Network Extension Southern Expected 1st Station of Targeted Gold Line and Northern Targeted Pink and Yellow
Zone 1 Green Ext 2 Northern Green Ext. 2 Green Ext.2 full commencement full commencement
*Remarks • In Apr 2013, The rights to net farebox revenue of Core Network until 2029 was sold to BTSGIF
• BTS Group used the proceeds to invest in 1/3 units in BTSGIF
BTS Group Investor Presentation Prepared by BTS Group IR 10
Section 2.1: Mass Transit BusinessCAPEX for New Green Line Extensions and Pink & Yellow
Secured by debt financing
THB 22BN BTSC DEBENTURE THB 63.4BN SYNDICATED LOAN THB 13BN GREEN BOND
Rationale: Purchase new rolling Rationale: Financing of the Pink Rationale: For debt repayment of
stocks and E&M for the and Yellow lines Eligible Green Projects
Northern and Southern (Pink & Yellow Line)
Green Line extensions
Transaction 10 October 2017 Issuance Date: 24 May 2019
Issuance Date: 10 November 2016 Date:
Average 3.31% Credit Total of THB 63.36bn Average 3.41%
Coupon Rate: Facilities: THB 31.68bn for Pink Line Coupon Rate:
THB 31.68bn for Yellow Line
Syndicate BBL, KTB, SCB
Banks:
Loan Term: 17 years and 3 months,
repayments starting from
first operation date
Green Line Extensions Pink and Yellow Lines
BTS Group Investor Presentation Prepared by BTS Group IR 11
Section 2.1: Mass Transit BusinessBTS Targeted Lines
Interested in an additional 81.2km of rail mass transit lines
WESTERN ORANGE LINE EASTERN ORANGE LINE 81.2KM TARGETED LINES IN THE NEXT 4 YEARS
Taling Chan - Thailand Thailand Cultural Center - Min Buri
Cultural Center 22.6km BTS TARGET ROUTE AUTHORITY DISTANCE NO. OF EXPECTED
17.0km (KM) STATION OPERATING
GREEN EXT. BANG WA
BMA 7.0 6 2022-2023
(WESTERN) - TALING CHAN
LRT BANG NA - SUVARNABHUMI BMA 18.3 14 2022
GREY PHASE 1 WATCHARAPHON – THONG LO BMA 16.3 15 2022
THAILAND CULTURAL
ORANGE (E) MRTA 22.6 17 2023
CENTER - MIN BURI
TALING CHAN - THAILAND
ORANGE (W) MRTA 17.0 12 2023
CULTURAL CENTER
OTHER ROUTE AUTHORITY DISTANCE NO. OF EXPECTED
(KM) STATION OPERATING
HUA LAMPHONG
BLUE MRTA 14.0 11 2019
- BANG KHAE
BLUE BANG SUE - THA PRA MRTA 13.0 9 2020
BANG KHAE – BHUDHAMONTHON
BLUE MRTA 8.0 4 2021
4
DARK RED BANG SUE - RANGSIT SRT 26.3 8 2021
LRT DARK RED BANG SUE – HUA LUM HONG SRT 6.5 5 2020
Bang Na BANG SUE – PHAYATHAI
LIGHT RED SRT 19.0 9 2020
– Suvarnabhumi – MAKKASAN – HUAMAK
18.3km
WESTERN GREEN LINE EXT. GREY LINE (PHASE 1) LIGHT RED BANG SUE – TALING CHAN SRT 15.0 4 2021
Bang Wa - Taling Chan Watcharaphon –
7.0km Thong Lo PURPLE
TAO POON – RAT BURANA MRTA 23.6 17 2022
16.3km (SOUTHERN)
TOTAL 206.6
7 aboveground stations
Under construction (including Northern Green Line Extension Zone 2 ,Gold Line, Pink and
Yellow lines, totaling 175.7km under construction)
BTS Group Investor Presentation Prepared by BTS Group IR 12
Section 2.1: Mass Transit BusinessTimeline of Upcoming Lines and CAPEX
Significant upcoming revenue expected in the next 3-5 years
EXPECTED CAPEX EXPECTED REVENUE
EXPECTED TIMELINE
(THB BN) (THB BN P.A.)
FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FAREBOX O&M
TRAINS E&M WORKS REVENUE REVENUE
GREEN LINE EXTENSION 9.8 2020 2042/43
84.5KM AWARDED LINES
ZONE 2: CAPEX INCL. SOUTHERN
AND NORTHERN PARTS 2.53 (Y1)
NORTHERN 17.8KM1
JUL 18 OCT 2021 2051/52
34.52
PINK LINE: 34.5KM CIVIL + TRAINS + E&M
JUL 18 OCT 2021 2051/52 4.5 – 5.0 (Y1)
32.62
YELLOW LINE: 30.4KM CIVIL + TRAINS + E&M
MAR 2018 SEP 2020 2049/50
GOLD LINE PHASE 1:
0.4 0.6
1.8KM
WESTERN GREEN LINE BY 2019 BY 2022
81.2KM BTS TARGETED LINES
2.1
EXTENSION: 7.0KM
BY 2019 BY 2022
LRT: 18.3KM 3.6 5.0
BY 2019 BY 2022
GREY LINE PHASE 1: 12.9
TRAINS + E&M
16.3KM
MID 2017 BY 2019 BY 2023
33.3
ORANGE LINE: 39.6KM TRAINS + E&M EASTERN SIDE
TOTAL THB START CIVIL WORKS CONSTRUCTION NOTE: 1 In total of 30.4km, divided into Southern Green 12.6km (fully commenced on 6 Dec 18) and Northern Green (17.8km).
2 Project cost (excluding interest expenses) for the Pink and Yellow based on MRTA submission and BTS owns 75% equity stake
CONSTRUCTION PERIOD
CAPEX/FINANCING 134.8bn EXPECTED START FULL OPERATION
in JV Cos. Calculation based on D/E ratio at 2.2x (equity required of THB 21bn). The JV Cos will receive civil work subsidy from
the MRTA of THB 22.5bn (for the Pink Line) and THB 25.05bn (for the Yellow Line) for 10 years from beginning of operation.
OPERATION YEAR, UP UNTIL 3Assume O&M revenue of THB 140mn/km p.a.
EXPECTED OPEN BID/ AWARD
BIDDING & CONSTRUCTION PERIOD
BTS Group Earnings Presentation Prepared by BTS Group IR 13
Section 2.1: Mass Transit BusinessInfrastructure Project
U-Tapao international airport - project at a glance
Project Details PPP Project Scope
Plub Pla ,Ban Chang District,
Location
Rayong Province 3 Package Inclusion:
2 4 1. Passenger Terminal Building 3
Land Area Approx. 1,600 Rai
2. Commercial Gateway
Contract Type PPP Net Cost 3. Cargo Village as a Free Zone
1 4. Cargo Complex
Contract Term 50 Years
Design & Build Operation and Maintenance 5
Package Exclusion:
3 Years 47 Years
6 5. Maintenance, Repair and Overhaul
Years
Authority Royal Thai Navy Facilities
7 6. Aviation Training Center
Total Project Cost THB 91bn per market sounding 7. Passenger Terminal Building 1 and 2
Sources of Fund Debt 70 : Equity 30
3 Consortiums submitted bid of U-Tapao Timeline
(42 companies bought U-Tapao RFP)
October 2018
Thana RFP selling period
Holding
35% Grande
Asset:
Thai Air CP
Ch Karnchang 21 March 2019
BBS 80% Grand Asia: 10%
Consortium Italian Thai Bidding Submission
JV Consortium Development
45% 20% B. Grimm Joint
2019
Christiani & Venture Holding
Neilson: Expected Best Bid
10%
Announcement
Source: Company Data and Market Sounding
BTS Group Investor Presentation Prepared by BTS Group IR 14
Section 2.1: Mass Transit BusinessRail Mass Transit Project
Orange Line – project at a glance
ORANGE LINE (39.6KM, 29 STATIONS) EXPECTED TIMELINE
Western Orange MAY 2017
Civil work construction of
Route Taling Chan – Eastern Orange began
Eastern Orange Thailand Cultural
Center
Length 17km
No. of
12 (underground)
Stations
2019
Western Orange Eastern Orange Expect request for
proposal (RFP) for Civil
Route Thailand Cultural
work construction of
Center - Min Buri Western Orange & E&M,
Length 22.6km available for sale
No. of 17 (10 aboveground and
Stations 7 underground)
CAPEX Civil ~THB 90bn*
2023
E&M ~THB 30bn Targeted Commercial
Underground Stations Operation Date
Elevated Stations * Western Orange civil works CAPEX
BTS Group Investor Presentation Prepared by BTS Group IR 15
Section 2.1: Mass Transit BusinessBTS 5-year Target of Network Expansion
Quadruple growth from 48.9km in 2018 to 215km in 2023
Distance (km) BTS Lines
400km
No. of stations BTS Targeted Lines
214.6
Total network in 2023
from 121.6km currently 175.0
179
150
68.5
215km
48.9 50.7
38.1
62
43 44
35
Targeted BTS network
in 2023 from 48.9km
currently
FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23
Samrong (1.8km) South ext. 1st station North ext. Pink line (34.5km)
176km
began operation (12.6km) of North ext. (17.8km) Yellow line (30.4km)
(1.8km) Gold line BTS Targeted Lines
(1.8km)
Western Green Orange line
Lines under construction ext. (7km) (39.6km)
LRT (18.3km)
Grey line phase1
(16.3km)
BTS Group Investor Presentation Prepared by BTS Group IR 16
Section 2.1: Mass Transit BusinessContents
1 BTS Group in Brief & Strategy & Outlook
Section Business Segment Profiles
2 Media Business
3 Corporate Information
4 Financial Summary
5 Appendices
BTS Group Investor Presentation Prepared by BTS Group IR 17Media Evolution
From traditional advertising to “Offline-to-Online Solutions”
BANGKOK CENTRIC NATIONWIDE NETWORK
POV MACO Aero Media
Established and was granted
Building IPO Billboard Airport
30yrs BTS ad. concession
(100% stake) (52.1% stake) (30% stake)
1999 2009 2012 2015 2015
O2O SOLUTIONS
Demo Power Rabbit Group Kerry Express (Thailand) Tech Partners OOH Partners
Direct to consumer Payment Logistics Anymind (JV 49%), Plan B (18.6% stake),
(40% stake) (90% stake) (23% stake) iClick (JV 30%)* Ad Chaopraya (25% stake)
* Entered into JV agreement
2015 2017 2018 2019 2019
BTS Group Investor Presentation Prepared by BTS Group IR 18
Section 2.2: Media BusinessWell-Diversified Media Portfolios
Advertising, Payment and Logistics Platforms across industries
PLATFORM ADVERTISING PAYMENT LOGISTICS
100.0% 33.2% 18.6% 30.0% 40.0% 90.0% 90.0% 23.0%
HOLDING
PERCENTAGE VGI MACO PLAN B AERO MEDIA DEMO
RABBIT GROUP KERRY EXPRESS
POWER
TRANSIT BUILDING OUTDOOR OUTDOOR AIRPORT ACTIVATION PAYMENT SERVICES LOGISTICS
No. 1 No. 1 No. 2 No. 1 The largest micro payment No. 1
No.1 Outdoor Media
Transit Media Building Media Aviation Media Activation platform Parcel Delivery
Services Services
COMPANY
SEGMENT
BKK, Thailand BKK, Nationwide, Nationwide, Nationwide, Nationwide, Nationwide, BKK and
GEOGRAPHICAL Nationwide,
KL, Malaysia Thailand Thailand Thailand Thailand Thailand Thailand nationwide,
Thailand
ACTIVITY KL, Malaysia Yangon, Thailand
JKT, Indonesia Myanmar
AUDIENCE
REACH 18mn potential reach
2018/19 REVENUE1 THB 4.7bn THB 483mn
2019/20
REVENUE TARGET THB 6.0-6.2bn
1 Excluding revenue from Aero Media, Demo Power and Kerry Express Thailand of which are recognised as equity method
BTS Group Investor Presentation Prepared by BTS Group IR 19
Section 2.2: Media BusinessAdvertising: Solid Growth Opportunities
Upside from BTS rail mass transit expansion
Secured by BTS Targeted Lines Carriages Stations
836 179
150
380
ADVERTISING 208 296
62
5-6x
Increase in Train &
43 44
Station Capacity
FY 18/19
2018/19 FY2019/20
19/20 FY2020/21
20/21 FY2021/22
21/22 FY2022/23
22/23
Core Line Green South Green North Pink Line Orange Line
Extension Extension Extension Yellow Line
Western Green
Extension
LRT
Grey Line (Phase I)
BTS Group Investor Presentation Prepared by BTS Group IR 20
Section 2.2: Media BusinessPayment: Synergy between VGI and Rabbit
Upside from monetisation of Rabbit’s data
OFFLINE PAYMENT: RABBIT CARD ONLINE PAYMENT: RABBIT LINE PAY
The E-money service provider with a common ticketing system supporting BTS and BRT. A mobile e-wallet solution embedded in the leading chat messenger
BSS system also encompass other forms of public transportation as well as retail, service application
and tourism sectors.
Current 2020 Current 2020
Rabbit Cards 11.0mn > 15.0mn Line Users 45.0mn >55.0mn
Active Cards 3.5mn > 8.0mn Rabbit Line Pay
5.5mn >10.0mn
Users
Retailer
> 7,400 >10,000 Online
Points > 1,000 >1,500
Merchants
LARGE PARTNERS NETWORK BUILT SERVICES BUSINESS UNDER RABBIT
JV with AEON: THB 1.3bn outstanding loans
Micro loan through the joint venture with AEON
Rabbit Insurance Broker: More than THB 16mn gross written
premiums per month
Insurance aggregator services on Rabbit Finance website and also a
licensed broker for insurance products.
Rabbit Daily: 3mn monthly visits
Online lifestyle publisher, providing social news and entertainment
content and advertorials
Co-branded Card: BBL co-branded card & AIS-Rabbit card
Issued by financial institutions or corporations that wish to add Rabbit
functionality to credit card, debit card, or other card types or devices
BTS Group Investor Presentation Prepared by BTS Group IR 21
Section 2.2: Media BusinessLogistics: Last Miles Delivery Services
Network expansion to accommodate the rise of E-commerce
DELIVERY SERVICES PORTFOLIO SERVICES PRODUCTS
Kerry is the No. 1 parcel delivery services in Thailand,
delivering more than 1,200,000 parcels per day and has more
than 4,000 retail service points nationwide.
INVESTMENT & ACCOUNTING METHOD
Investment: 23% in Kerry Express Thailand
Accounting Method: Equity Sharing
SERVICES CHANNEL
B2B delivering parcels from company to various places such
125X
as financial institutions, law firm, retail shops and etc.
Digital Thailand – Jan.2018
B2C delivering parcels from e-market place to the individual
Population 69.11 M
shoppers
Internet users 57.00 M KERRY PARCEL DELIVERED
C2C delivering letters and parcels from online retailers to
Social media users 51.00 .M PER DAY
individual consumers
Unique mobile users 55.56 M
1,200,000
Mobile social users 46.00 M C2C
NETWORK
70%
• Deliver more than 1,000,000 parcels per day
C2C
• 975 distribution centers
65% C2C
• 695 parcel shops in Bangkok, Central and East 67%
C2C 500,000
• 5,079 retail service points at alliance shops
C2C 50%
C2C C2C
B2C 50%
50%
B2C B2C B2C
B2B 75,000 B2C
40% B2C30% 31% 26%
8,000 40,000 40%
2012 2013 2015 2017 2018
BTS Group Investor Presentation Prepared by BTS Group IR 22
Section 2.2: Media BusinessVGI’s acquisition and partnership
ACQUISITION OF 18.6% IN PLANB PARTNERSHIP WITH ANYMIND GROUP
Collaboration of the Top Players in OOH Media Segment To incorporate AI solutions in Offline and Online advertising
• Consolidate OOH media market (> 12bn of media inventory) • Leveraging AnyMind platform product including online advertising and
• Apply “unique Offline-to-Online marketing solutions” from a completed influencer marketing into VGI O2O Solutions offering to provide better
OOH journey to data optimisation with engaging entertainment content, performance for our clients
to convert on payment & loyalty platforms • Developing out-of-home programmatic media platform by using Anymind’s
• Centralise for cost savings including leverage proprietary system or technology and VGI’s digital out-of-home media assets to increase
technology. Hence, more overall cost efficient. effectiveness of out-of-home media platforms
• Improve competitive positioning in THB 100bn media industry • Leveraging AnyMind Technology platform to better organise, analyse and
mobilise Rabbit data network
% of investment 18.6% of total shares
1. 9.5% from existing shareholders
2. 9.1% from newly issued ordinary shares
Total shares 1. 368.8mn shares from existing shareholders PARTNERSHIP WITH I-CLICK INTERACTIVE ASIA GROUP
acquisition 2. 353.0mn shares from PLANB’s newly shares
To capture advertising opportunity in Chinese consumer market
Acquisition price THB 6.40 per share
• Capturing advertising opportunity in China market
Total investment THB 4,619.6mn
• Appointing VGI as a sales agent of the JVCo to become the regional
Source of fund: Cash of THB 2,900mn and Loan THB 1,700mn cross-border advertising solution distributor
• Generating cross-border marketing opportunities through mobile and
new media products, including: O2O Solutions: launching 10,000 new
Mr. Palin Dr. Pinijsorn mobile charging stations with LED display, which will be placed
Lajanagosin Luechaikajohn Public throughout VGI’s network across Thailand such as BTS SkyTrain stations
Group pan Group and Kerry Express’s distribution centers.
31.4% 6.4% 43.6% 18.6%
Chinese Game Online Instant Travel
search engine Operator messaging service service provider
BTS Group Earnings Presentation Prepared by BTS Group IR 23
Section 2: Business UpdatesContents
1 BTS Group in Brief & Strategy & Outlook
Section Business Segment Profiles
2 Property Business
3 Corporate Information
4 Financial Summary
5 Appendices
BTS Group Investor Presentation Prepared by BTS Group IR 24Property Portfolio
PROPERTY BOOK VALUE BREAKDOWN LAND: OVER 969,000M² OF OPPORTUNITY IN BANGKOK ALONE
Projects and Properties Kukot 51.7 rai (8.3 ha)
a. The LINE Jatujak – Mochit
b. The LINE Sukhumvit 71
c. The LINE Ratchathewi Mochit 11.1 rai (1.8 ha)
Residential d. The LINE Asoke-Ratchada
Total Book Value U City* e. The BASE Garden Rama 9
THB 0.5bn f. The LINE Pradipat
as of 31 Mar 19: THB 69.0bn g. The LINE Sukhumvit 101 k
h. KHUN BY YOO l
THB 82.5bn a
i. The BASE Petkasem 29
j. The LINE Sathorn f
Commercial k. The LINE Wongsawang d
Thana City Golf and l. TST Tower Office Building p
Land Bank m. U Sathorn Hotel e
Sports Club c
THB 9.6bn** n. Eastin Grand Sathorn Hotel h
THB 3.4bn o. Eastin Thana City q r b
*Adjusted for equity stake (37.56%) p. The Unicorn o s
q. The Grand j m g
**Subsequently on 17 May 19, Bayswater JV (value of THB 7.7bn) was sold to CPN n t
r. The Royal Place II i
s. Thana City Golf & Sports Club Thana City
t. Verso International School 308.6 rai
HISTORICAL LAND TRADING UNDER BTS GROUP Projects and Properties (49.4 ha)
Land Bank
(THB mn) Proceeds from land sales Net gain U City Residential
9,000 3,300 BTS Group Land Bank Ratburana &
U City Recurring Income Suksawad
48-rai land sale U City Land Bank
8,000 BTS Residential 44.1 rai
2,800 JV)
(Bayswater
Kamla Beach Resort and Hotel (7.6 ha)
7,000 BTS Commercial
THB 1.6bn (Net Gain THB
2,300
0.3bn)
6,000 5-rai land at ATTRACTIVE LAND BANK
Kampoo Property: THB 1.8bn Mo Chit
(Net Gain THB 0.7bn)
5,000 1,800
Owners Total Area (Rai) Total Area (sq.m)
4,000 1,000 Bang Pakong and 1,300
Bangna km 18
BTS Group PLC 489.4 782,966.0
3,000
800 U City PLC 906.6 1,450,635.6
2,000 379 368
Total 1,396.0 2,233,601.6
300
1,000
3,492 554 1,411 7,700 Includes Upcountry, BKK & Vicinities land bank, not equity stake adjusted Data as of 30 Jun 18
- (200)
F/Y 12/13 F/Y 13/14 F/Y 14/15 F/Y 19/20E
BTS Group Investor Presentation Prepared by BTS Group IR 25
Section 2.3: Property BusinessU City’s Property Overview
Globally developing and investing in diversified property
HOSPITALITY
95 hotels and more than 26,000* keys owned, leased or managed
U Chiang Mai Hotel Vienna House Hotels
3 office buildings and business interests spanning 15 countries globally
Presence in
10 European Countries
39 hotels, 3 buildings
• Austria
• Belarus U Sathorn Hotel
• Czech Republic Presence in
• France 5 Asian & Middle
• Germany Eastern Countries
• Poland 56 hotels, 1 building,
• Romania 14 condominiums launched
• Russia Eastin Grand Sathorn Hotel
• Thailand
• Slovakia
• Vietnam
• United Kingdom
• Indonesia
• India
• Oman
* As of 15 May, 9915 keys are under operation
OFFICE RESIDENTIAL MIXED USE EDUCATION
33 Gracechurch Street 6-14 Underwood TST Tower SANSIRI JV The Unicorn Verso International School
Street
BTS Group Investor Presentation Prepared by BTS Group IR 26
Section 2.3: Property BusinessContents
1 BTS Group in Brief & Strategy & Outlook
Section Business Segment Profiles
2 Services Business
3 Corporate Information
4 Financial Summary
5 Appendices
BTS Group Investor Presentation Prepared by BTS Group IR 27Services Business
Strategic support and business incubator
RABBIT REWARDS PROGRAMME
• A loyalty programme for consumers who transact with the Rabbit Card and/or Rabbit Line Pay.
• The Rabbit Points can be redeemed for vouchers across our retail partner network and additional Rabbit Rewards partners.
• Rabbit Rewards registration will enable us to enhance and provide marketing solutions to targeted consumers which will
synergise with our media business. In FY 2018/19, the programme had 4.2million registered members.
CHEFMAN RESTAURANTS
CHEFMAN
RESTAURANTS
• Premium Chinese restaurant chain managed by Man Food Holdings.
• In June 2017, Chef Man added a new strategic JV partner Bangkok Ranch (BR). With
SERVICES BUSINESS
BR’s extensive food processing expertise will enable Chef Man to scale-up its
business domestically and internationally.
BANGKOK PAYMENT SOLUTIONS (BPS)
• Joint venture between BTSG and VIX Group, a leading technology development for Central Clearing House (CCH) and
Automatic Fare Collection (AFC) services
• Served as a vehicle for developing software and providing technology services for an integrated mass transit and payment
systems in Thailand
HHT CONSTRUCTION
Joint venture between BTSG and Li Kay Engineering, a Hong Kong based civil and foundation company.
BTS Group Investor Presentation Prepared by BTS Group IR 28
Section 2.4: Services BusinessContents
1 BTS Group in Brief & Strategy & Outlook
2 Business Segment Profiles
• Mass Transit Business
• Media Business
• Property Business
• Services Business
Section
3 Corporate Information
4 Financial Summary
5 Appendices
BTS Group Investor Presentation Prepared by BTS Group IR 29BTS Group History
MAR 2018
BTSG completed the entire business transfer of
Unicorn Enterprise Company Limited, our
1968 1992 2008 2010 APR 2013 former subsidiary, to U City Public Company
Company established TYONG established BTSC exit court TYONG acquired 94.6% BTSC sold the future Limited, our associate
as Tanayong Co., Ltd. a wholly-owned supervised of BTSC, returning Mass Net Fare-box Revenue
subsidiary, Bangkok rehabilitation Transit operations to be under its Concession JUL 2018
(TYONG) to operate in
Transit System procedure the primary business of Agreement to BTS Rail BTSC&KT entered into a 30-year O&M Services
property development
Mass Transit Agreement of the Gold Line Project Phase 1
field Corporation Ltd. the Company. The
Infrastructure Fund (Krung Thonburi BTS Station – Khlong San District
(BTSC), which won Company also changed
Office, 1.7km and 3 stations)
the SkyTrain its name to BTS Group (BTSGIF)
concession bid Holdings PCL (BTSG) SEP 2018
The company has been officially selected
by the Dow Jones Sustainability Indices
(DJSI) Emerging Markets 2018
BTSC signed a 30-year
operating & maintenance BTSC signed the operating & maintenance
(O&M) contract covering Green (O&M) contract with KT; covers 30.8km of
Line extensions (Saphan Taksin Green Line Northern and Southern
- Wongwian Yai - Bang Wa extensions (Mo Chit – Khu Khot and Bearing
and Onnut - Bearing) under the – Samut Prakarn)
TYONG listed on the BTSC expanded into
Commercial purview of the Bangkok
Stock Exchange of Media business MAR 2017
operation of the BTS Metropolitan Administration
Thailand under through the acquisition
SkyTrain (BMA)
Property Development of 100% of VGI Global
sector commenced Media Co., Ltd. (VGI) MAY 2012
Concession Contracts of the Pink (Khae
1991 1999 2009 Rai to Min Buri) and the Yellow Line (Lad
VGI Global Media PCL, the Prao to Sam Rong), a total length of
Group’s Media subsidiary, 64.9km were awarded
listed on the Stock Exchange
of Thailand
JUN 2017
OCT 2012
BTS Group Investor Presentation Prepared by BTS Group IR 30
Section 3: Corporate InformationBusiness Organisation and Shareholding Structure
as of 31 March 2019
1 Information
41% Kanjanapas Family1
based on book closure date on 21 Jan 19 with total issued shares = 11,940.4mn shares
2 BTSG holds 69.69% of VGI indirectly and directly as of 31 January 2019 BTS Group Holdings PCL 36% Institutional Investors1
3 Revenue from the Company recorded under Services BU 22% Individual Investors1
MASS TRANSIT BUSINESS MEDIA BUSINESS PROPERTY BUSINESS SERVICES BUSINESS
25.79% 100% Turtle 23 Co., Ltd.
LEGEND 97.48% 38.99%
45.04% VGI Global Media U City PCL 100%
Listed entities Bangkok Mass Transit PCL (VGI) 2 RB Services Co., Ltd.
System PCL (BTSC) 100% Rabbit Rewards
Subsidiaries Kingkaew Assets Co., Ltd. 75%
100% VGI Advertising 100% Co., Ltd.
Associates Media Co., Ltd. 100% The Community One Co., 60% Bangkok Payment
BTS Infrastructure
JVs Services Co., Ltd Ltd. Solutions Co., Ltd.
888 Media 100% 41.18% Man Food Holdings Co.,
100% 100% The Community Two Co.,
Co., Ltd. Ltd.
BTS Infrastructure Ltd.
Development Co., Ltd Point of View (POV) 100% 100% 100% Man Food Products
Media Group Co., Ltd. Yongsu Co., Ltd.
75% Co., Ltd.
Northern Bangkok BV Media 50% 100%
DNAL Co., Ltd. 100% Primary Kitchen
Monorail Co., Ltd. Ads Limited
50% Co., Ltd.
75% Demo Power 40%
Bayswater Co., Ltd. 100% Man Kitchen Co.,
Eastern Bangkok (Thailand) Co., Ltd.
Monorail Co., Ltd. 31.65% Ltd.
33.33% 69% Little Corner Co., Ltd.
Master Ad PCL 18.09%
BTS Rail Mass Transit 51% KMJ 2016 Co., Ltd.
Growth Infrastructure VGI MACO (Singapore) 75% 51%
25% HHT Construction
Fund (BTSGIF) Private Limited VGI AnyMind
49% Co., Ltd.3
75% Technology
VGI Global Media 90% BSS Holdings Co., Ltd.
25% Co., Ltd
Employees (as of 31 Mar 2019) (Malaysia) Sdn Bhd
80%
25% Supremo Media RabbitPay System Co., Ltd.
Mass Transit 2,862 Aero Media 30% Co., Ltd 33.33%
Group Co., Ltd.
23% Kerry Express Rabbit-Line Pay Co., Ltd.
Media 727 25%
The ICON VGI (Thailand) Ltd 51% ATS Rabbit Special Purpose
Property - Co., Ltd.
20% Group Work Vehicle Co., Ltd.
Co., Ltd. 60%
Rabbit Internet Co., Ltd.
Services 497
100% ASK Direct Group Co., Ltd.
BTS Group 122 100% Rabbit Insurance
BrokerCo., Ltd.
Total 4,208
90% Bangkok Smartcard System Co., Ltd.
BTS Group Investor Presentation Prepared by BTS Group IR 31
Section 3: Corporate InformationBTS Group Share Information
Dividend and credit rating profile
DIVIDEND POLICY CREDIT RATING AND OUTLOOK
No less than 50% of net profit Issue Rating/ Outlook
from TRIS
HISTORICAL DIVIDEND PAYMENTS/ DIVIDEND YIELD AND PAYOUT BTS Group A/ Stable
BTSC A/ Stable
FY 16/17 FY 17/18 FY 18/19
THB 22bn BTSC Debenture
A/ Stable
Senior Unsecured Debenture
Actual Dividend Paid
4,026 4,145 5,153 THB 9.5bn BTSG Debenture
(THB mn)
Senior Unsecured Debenture
A/ Stable
Dividend per Share Issuance Date: 7 Sep 18
0.34 0.35 0.42
(THB) Average Coupon Rate: 3.38%
THB 7bn BTSG Debenture
Dividend Yield (1)
4.0% 3.9% 4.0% Senior Unsecured Debenture
(%) A/ Stable
Issuance Date: 26 Dec 17
Average Coupon Rate: 3.17%
Dividend Payout
180% 87% 139%
(%) THB 13bn BTSG Debenture
Unsubordinated and Unsecured
A/ Stable
(1) Calculated based on the share price of one day before the Board of Directors’ approval date for relevant dividend Green Bond
payment
Issuance Date: 24 May 19
Average Coupon Rate: 3.41%
BTS Group Investor Presentation Prepared by BTS Group IR 32
Section 3: Corporate InformationBTS Group Share Information
SHARE INFORMATION (as of 29 Mar 2019) SHAREHOLDING STRUCTURE (as of 29 Mar 2019)
Stock code BTS Retails
19.7%
Outstanding shares (mn shares) 11,845 Free Float
Market capitalisation (THB mn) 130,299.1 Kanjanapas’s (as of Jun 18)
Market capitalisation (USD mn) 4,105.6 Group 11,845mn 58%
shares Thai Funds
Average daily traded value (THB mn) 407.9 41.3%
18.9%
Average daily traded value (USD mn) 12.9 Foreign Limit
Credit Rating (by TRIS) A/Stable NVDR Foreign Funds 49%
10.9% 9.2%
SHARE PRICE MOVEMENT (as of 29 Mar 2019) TOP 10 SHAREHOLDERS (as of 29 Mar 2019)
THB THB mn
12 1,200.0 Name %*
BTS Daily Traded Value (RHS) BTS TB Equity SET Index 1 Mr. Keeree Kanjanapas 's Group 41%
11 1,000.0 2 Thai NVDR Co., Ltd. 11%
3 Bangkok Bank Public Company Limited 5%
10 800.0
4 Social Security Office 3%
9 600.0 5 SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED 2%
6 STATE STREET EUROPE LIMITED 1%
8 400.0 7 Bualuang Long-Term Equity Fund 1%
8 Bualuang Top-Ten Fund 1%
7 200.0
12M ADTV = THB 44bn 9 UOB KAY HIAN PRIVATE LIMITED 1%
10 Mr. Min Tieanworn 1%
6 -
TOTAL TOP 10 SHAREHOLDERS 67%
*Total of 11,845,369,480 shares
BTS Group Investor Presentation Prepared by BTS Group IR 33
Section 3: Corporate InformationContents
1 BTS Group in Brief & Strategy & Outlook
2 Business Segment Profiles
- Mass Transit Business
- Media Business
- Property Business
- Services Business
3 Corporate Information
Section
4 Financial Summary
5 Appendices
BTS Group Investor Presentation Prepared by BTS Group IR 34BTS Group Financial Performance
FY 18/19 OPERATING REVENUE & EBITDA CONTRIBUTION CONSOLIDATED P&L (THB MN) FY 18/19 FY 17/18 FY 16/17
Operating revenues 47,923 14,102 8,606
Accounting revenues 48,947 15,107 9,618
Revenue EBITDA
Business Units Operating expenses 40,054 8,325 4,143
Contribution (%) Contribution* (%)
EBITDA 6,876 7,571 4,114
Mass Transit 86% 65% Operating EBITDA(1) 6,106 4,089 2,928
Media 11% 34% Recurring Net Profit 3,248 2,508 1,417
Property 1% (0.3)% Net income(2) 2,873 4,416 2,003
Services 2% 0.4% DEBT INFORMATION (THB MN) 31-Mar-19 31-Mar-18 31-Mar-17
Interest bearing debt 72,474 47,169 38,310
Total (THB mn) 47,923 6,106**
Adj. net debt (5) 53,784 17,129 6,051
KEY FINANCIAL RATIOS FY 18/19 FY 17/18 FY 16/17
Note: Revenue and EBITDA excludes the equity income from Sansiri JV, U City, Bayswater JV, Keystone JV
* Calculated base on EBITDA of THB 6,835mn which excludes selling and Administrative expenses at Head- Profitability ratios (%)
Office of THB 729mn
** After selling and Administrative expenses at Head-Office of THB 729mn Gross operating profit margin 16.4% 41.0% 51.9%
SG&A to operating sales ratio 5.3% 17.3% 24.6%
Accounting EBITDA margin 13.9% 42.3% 41.2%
OPERATING REVENUE COMPARISON (YoY)
Operating EBITDA margin(1) 12.7% 29.0% 34.0%
(THB mn)
Recurring net profit margin (%) 9.8% 23.4% 25.0%
47,923 Liquidity ratio
354% 31% (44)% 148%
Current ratio (times) 0.51x 0.95x 1.38x
4,875 1,221 (279) 663 Leverage (Times)
14,102 Total liability to total asset 0.64x 0.56x 0.52x
Total liability to total equity 1.77x 1.29x 1.07x
Interest bearing debt to equity 1.39x 1.02x 0.85x
Adj. net debt(5) to equity 1.03x 0.37x 0.13x
FY17/18 Mass Transit Media Property Services FY18/19 Adj. net debt(5) to recurring EBITDA 7.43x 3.02x 1.72x
(1) Operating EBITDA excludes non-recurring items but includes share of profit (loss) from BTSGIF Interest coverage(3) 3.70x 3.31x 4.55x
(2) Net income attributable to equity holders of the parent
(3) Operating EBITDA/finance cost
Per share ratios
(4) Interim and final dividends, calculated on annual basis using BTS TB closing share price on the date Book value per share (THB) 4.40 3.91 3.82
of the Board of Directors’ meeting approving the relevant dividend
(5) Interest bearing debt - cash and cash equivalent and liquid investment Dividend yield (4) 3.98% 3.95% 4.00%
BTS Group Investor Presentation Prepared by BTS Group IR 35
Section 4: Financial SummaryOperating Revenue by Business Units
MASS TRANSIT MEDIA
41,328 5,123
3,902
3,010
2,318
9,112
2,574 4,237
FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 15/16 FY 16/17 FY 17/18 FY 18/19
FY 2018/19:- FY 2018/19:-
• Construction revenue for Pink & Yellow Lines: THB 30.7bn • OOH Media revenue: THB 3,841mn
• Services revenue from provision of E&M works & train: THB 6.1bn • Digital Services business: THB 1,282mn
• O&M Revenue: THB 2,277mn
• Share of net profit from investment in BTSGIF: THB 898mn
• Mass Transit related Interest Income: THB 1,078mn
PROPERTY SERVICES
897 1,112
617 639 743
360 492 449
FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 15/16 FY 16/17 FY 17/18 FY 18/19
FY 2018/19:- FY 2018/19:-
• Commercial Property revenue : THB 332mn • HHT revenue : THB 911mn
• Residential Property revenue: THB 28mn • BPS and Rabbit Rewards: THB 201mn
BTS Group Investor Presentation Prepared by BTS Group IR 36
Section 4: Financial SummaryFinancial Position as of 31 March 2019
ASSETS BREAKDOWN LIABILITIES AND EQUITY BREAKDOWN
(THB mn) Cash (THB mn) Gross Debt
144,315 31 Mar 18: THB 9.5bn 31 Mar 18: THB 47.2bn
144,315
31 Mar 19: THB 4.0bn 31 Mar 19: THB 72.5bn1
21,129 15%
106,258 Cash & liquid investment 106,258 41,794 29%
Adjusted Net Debt2
31 Mar 18: THB 30.1bn 31 Mar 18: THB 17.1bn
21,667 20% 31 Mar 19: THB 18.7bn 22,923 21%
31 Mar 19: THB 53.8bn
50,370 35%
123,186 85% Current Investments 36,971 35%
*****
84,591 80% 31 Mar 18: THB 5.7bn
31 Mar 19: THB 7.7bn Issued Ordinary Shares
46,364 44% 52,150 36%
31 Mar 18: 11,940.4mn
Long-Term Investments 31 Mar 19: 11,845.4mn
31 Mar 18 31 Mar 19 31 Mar 18: THB 15.9bn
31 Mar 18 31 Mar 19
31 Mar 19: THB 14.6bn
Total non-current assets Total current assets Total shareholders' equity Total non-current liabilities Total current liabilities
1 Comprised of 34% floating-rate debt and 66% fixed-rate debt, with an average cost of debt of 3.5% as of 31 Mar 19
2Adjusted Net Debt = Interest Bearing Debt – Cash and Cash Equivalent and Liquid Investment
KEY RATIOS
Gross Debt Adjusted Net Adjusted Net Debt*
Interest Coverage Current Ratio
to Equity Debt* to Equity to Recurring EBITDA
FY 2018/19: 1.39x FY 2018/19: 1.03x FY 2018/19: 7.43x FY 2018/19: 3.70x FY 2018/19: 0.51x
FY 2017/18: 1.02x FY 2017/18: 0.37x FY 2017/18: 3.02x FY 2017/18: 3.31x FY 2017/18: 0.95x
BTS Group Investor Presentation Prepared by BTS Group IR 37
Section 4: Financial Summary2019/20 BTS Group Targets and CAPEX
BTS GROUP TARGETS
MASS TRANSIT MEDIA PROPERTY
THB 23 - 27bn THB 4 - 6bn THB 6.0-6.2bn THB 350mn
Pink and Yellow Lines Revenue from E&M VGI Revenue BTS Group
Construction revenue provision and train Property Revenue
procurement for
Green Line extensions
THB 1.5 - 1.9bn 40 - 45% THB 7.2 - 7.5bn
Mass transit-related interest income VGI EBITDA margin U City Revenue
THB 3.4bn
Train O&M revenue 20 - 25% ≥ 20%
VGI NPAT margin U City EBITDA margin
4 - 5%
Core Network ridership growth
CAPEX: THB 28-34BN
THB 27 - 33bn THB 0.7bn THB 0.2bn
BTS Group Investor Presentation Prepared by BTS Group IR 38
Section 4: Financial SummaryContents
1 BTS Group in Brief & Strategy & Outlook
2 Business Segment Profiles
• Mass Transit Business
• Media Business
• Property Business
• Services Business
3 Corporate Information
4 Financial Summary
Section
5 Appendices
BTS Group Investor Presentation Prepared by BTS Group IR 39Appendix 1: Media Market Overview
OOH and Online outperformed industry spending Industry Spending = THB 121bn
Traditional Spending = THB 84bn
Economic Down Turn
Industry Spending = THB 90bn - Bangkok shutdown OOH Spending = THB 14bn
- Coup d’etat
Traditional Spending = THB 79bn Online Spending = THB 17bn
OOH Spending = THB 6.5bn
Online Spending = THB 0.3bn ONLINE CAGR1 = 58.7%
OOH CAGR1 = 8.8%
INDUSTRY CAGR1 = 3.3%
TRADITIONAL CAGR1 = 0.6%
Incl. TV, Radio, Newspaper and Magazine
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
OOH Traditional Online/ Digital Total
Improving of OOH Media
Increasing mobility Increasing urbanisation Fragmentation of other
(Digitalisation, data, planning tools,
broadcasting channels
mobile connection etc.)
Source: The Nielsen Company (Thailand) Co.Ltd. & Digital Agency Association (Thailand) 12009 – 2018 CAGR
BTS Group Investor Presentation Prepared by BTS Group IR 40
AppendicesAppendix 1: Media Market Overview
The Rise of E-Commerce Fueling Growth in E-Payment & Logistics
4X
THB bn
3,150
2,763
E-COMMERCE MARKET
2,560
2,245
2,033
744 768
2012 2013 2014 2015 2016 2017 2018
Increasing Players Increasing Increasing Demand Growth Opportunity
in E-commerce Transaction On Goods Delivery For E-Payment &
Market Through Online And Other Services Logistics
Source: Electronic Transaction Development Agency (ETDA)
BTS Group Investor Presentation Prepared by BTS Group IR 41
AppendicesAppendix 1: Property Market Overview
BANGKOK CONDO LAUNCHES AVG. PRICES AND TAKE-UP RATES BY DISTANCE TO BTS
Units
35,000 55% 2016
Total Total Total Total Total 46%
2017
25,000
50,105 34,666 39,046 58,424 66,021 70% 30,000
37% 2018
60% 25,000
20,000
35%
61% 60% 58% 50% 46%
56% 57% 20,000 42%
15,000
40%
15,000
10,000 30% 15%
20% 10,000
8%
5,000
5,000 7% 5%
10% 2% 2%
0 0% 0
2014 2015 2016 2017 2018 Below THB THB 50,000 - THB 100,001 - THB over
1Q 2Q 3Q 4Q Average Take-up Rates (%) 50,000 / sq.m 100,000 / sq.m 200,000 / sq.m 200,000 sq.m
Source: Colliers International (Thailand)
Source: Colliers International Thailand
INTERNATIONAL TOURIST ARRIVALS IN THAILAND GLOBAL INTERNATIONAL TOURIST ARRIVALS
Millions of Visitors CAGR CAGR
+10.3% +4.9%
1,401
38.3 1,322
35.4 1,184 1,235
32.6 1,088 1,134
29.9 994 1,040
26.5 24.8
22.4
19.2
2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018
Source: Department of Tourism, Ministry of Sports and Tourism Source: UNWTO
BTS Group Investor Presentation Prepared by BTS Group IR 42
AppendicesAppendix 2: BTS Network
23.5km Core Network and 12.8km Green Line Extension
CORE NETWORK: 23.5KM ZONE 1: 12.8KM EXTENSIONS
23 stations, 23.5km located at CBD of Bangkok
Inaugural Mass Transit route, operated since Dec 1999
No revenue sharing to BMA CORE NETWORK MO CHIT –
Under 30 years concession contract (net cost model) ON NUT
from 1999 - 2029 17.0KM
In Apr 2013, BTSC sold the rights to net farebox revenue ONNUT – BEARING
under its concession agreement for the BTS Skytrain NATIONAL 5.3KM
STADIUM – EXT. ZONE 1
Core Network until Dec 2029 to BTSGIF SAPHAN
BTS Group used the proceeds to invest 1/3 units in TAKSIN 6.3KM
BTSGIF (10 years lock-up)
SAPHAN TAKSIN –
BANG WA 7.5KM
BTSC has operated & maintained the
RESILIENCE RIDERSHIP SINCE INCEPTION (CAGR: 9.3%) DISTANCE-BASED FARE (AVG = THB 29.0/TRIP) extensions since 2009
AUTHORISED FARE (APR 13)
Pre-agreed fee income with no ridership risk
18Y Farebox Revenue CAGR: 9.3%
18Y Ridership CAGR: 8.2% NEW EFFECTIVE FARE (OCT 17) 30-Year O&M Contract signed in May 2012:
233 238 241 241 1. Current extensions (zone 1) of 11 stations, 12.8km
215 219 PREVIOUS EFFECTIVE FARE (JUN 13)
Farebox revenue (THB bn) 197 POTENTIAL FARE UPSIDE 2. Core Network of 23 stations, 23.5km
176 60.3 post concession expiry (Dec 2029 – May 2042)
Ridership (mn) 53.6
6.96
144 145
6.82
(unit: THB bn)
6.64
132 139 133 136
6.40
46.9 Core Line Zone 1
118
5.87
5.68
96 105 40.2
4.90
79 Zone 1: CAGR
33.5
4.30
59 44.0 (FY16/17-FY41/42) = 3.9%
26.8
37.040.0
3.54
Core Line: CAGR
3.48
3.29
6.0
3.22
3.07
(FY30/31-FY41/42) = 3.1%
2.82
33.0
2.57
20.1 30.0
2.29
1.42
2.12
1.78
26.0
23.0
3.4
16.0
16/17 1.7
12/13
15/16
16/17
10/11
13/14
09/10
01/02
17/18
00/01
02/03
03/04
06/07
14/15
05/06
08/09
18/19
07/08
04/05
11/12
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
20/21
22/23
25/26
27/28
28/29
29/30
30/31
32/33
35/36
37/38
38/39
23/24
26/27
33/34
36/37
24/25
34/35
39/40
19/20
21/22
31/32
40/41
42/43
17/18
41/42
18/19
NO. OF STATIONS
PPP NET COST CONTRACT O&M CONTRACT
BTS Group Investor Presentation Prepared by BTS Group IR 43
AppendicesAppendix 2: BTS Network
23.5km Core Network and 12.8km Green Line Extension
ZONE 2: 30.4KM NEW EXTENSIONS 64.9KM PINK AND YELLOW LINE (MONORAIL)
PINK YELLOW
NORTHERN GREEN
PINK Kae Rai – Lad Prao –
LINE Route
Min Buri Sam Rong
EXT. ZONE 2 MO CHIT - KHU KHOT
PROJECT DETAILS
Distance / no. of
17.8KM 34.5km / 30 30.4km / 23
KHAE RAI stations
– MIN 42; 4-car train 30; 4-car
BURI Required trains (168 cars ) train
YELLOW 34.5KM (120 cars )
SOUTHERN GREEN YELLOW Contract length 30yr operation 30yr operation
LINE LAD PRAO –
BEARING – KHEHA SAM RONG Daily ridership in Y1 199k trips 195k trips
EXPECTED RIDERSHIP AND
12.6KM 30.4KM Ridership CAGR (30Y) 5.2% 4.5%
Average fare in Y1 THB 34.7/ trip THB 30.0/ trip
REVENUE
26% at early 34% at early
EXT. ZONE 2
stages stages
EBITDA margin (%)
rising to 69% rising to 64%
OWNERSHIP STRUCTURE at Y30 at Y30
BTSC has the operated & maintained of the 15% of
10% of farebox
Commercial revenue farebox
additional 30.8km of Green Line extensions revenue
revenue
STEC
on 31 Mar 17
BTS 15% Total Project Cost THB 49.4bn THB 46.7bn
Pre-agreed fee income with no ridership risk
25-year O&M contract covers 30.8km of RATCH Civil Subsidy Amount THB 22.5bn THB 25.05bn
75%
PROJECT CAPEX &
10% Equal
Northern and Southern Green Line Equal payment
FINANCING
payment at
Extensions at 2.25bn p.a.
2.505bn p.a.
for 10 years
(Apr 17 – May 42) Civil Subsidy Term for 10 years
NORTHERN BANGKOK EASTERN BANGKOK from
• SOUTHERN: Bearing – Kheha MONORAIL COMPANY MONORAIL COMPANY beginning of
from
(12.6km/ 9 stations) LIMITED LIMITED
beginning of
operation
operation
• NORTHERN: Mo Chit – Saphan Mai – Khu PINK LINE PROJECT YELLOW LINE PROJECT Sharing to MRTA THB 250mn THB 250mn
Khot (17.8km/ 16 stations) (INCLUDE EXTENSIONS) (INCLUDE EXTENSIONS)
Funding (D/E) 2.5x 2.5x
O&M CONTRACT PPP NET COST CONTRACT WITH SUBSIDY
BTS Group Investor Presentation Prepared by BTS Group IR 44
AppendicesAppendix 2: Summary of BTS Mass Transit Contracts
CORE NETWORK EXTENSION ZONE 1 EXTENSION ZONE 2 PINK & YELLOW GOLD LINE PHASE 1
ROUTE • Dark Green • Dark Green • Southern Green • Pink Krung Thonburi BTS Station
Mo Chit – Onnut Onnut - Bearing Bearing - Kheha Khae Rai - Min Buri - Khlong San District Office
• Light Green • Light Green • Northern Green • Yellow
National Stadium - Saphan Taksin Saphan Taksin - BangWa Mo Chit - Khu Kot Lad Prao - Sam Rong
DISTANCE 23.5km, 23 stations 12.8km, 11 stations 30.4km, 25 stations 64.9km, 53 stations 1.8km, 3 stations
& NO. OF
STATIONS
AUTHORITY BMA BMA BMA MRTA BMA
CONTRACT 30Y Concession 13Y O&M 30Y O&M Contract 25Y O&M Contract 30Y Concession 30Y O&M Contract
TYPE Agreement (1999- Contract (2012 - 2042) (2017 - 2042) Agreement (from 1st operation date)
& CONTRACT 2042) (2029-2042) (from 1st operation
LENGTH date)
INVESTMENT PPP Net Cost O&M Contract O&M Contract O&M Contract PPP Net Cost O&M Contract
SCHEME (1999-2029) (2029-2042)
CAPEX AND Civil: Civil: x Civil: x Civil: x Civil: Civil: x
FINANCING (subsidised by gov’t)
E&M: E&M: x E&M: x E&M: x E&M: x
= BTS E&M: (hire BTS, ≈THB 0.6bn)
INVESTMENT Rolling Stock: Rolling Stock: Rolling Stock: Rolling Stock:
(≈THB (≈THB 4.9bn) (≈THB 9.8bn) Rolling Stock: Rolling Stock:
------------ 5.8bn) ------------ (≈THB 0.4bn)
Project Cost Project Cost
(≈THB 49.5bn) ≈THB 96bn
(gov’t subsidy of THB
47bn)
REMARKS:
Public-Private Partnership (PPP) Net Cost = Private obtains farebox revenue and commercial development
O&M Contract = Private receives operation and maintenance fee, while the public benefits from farebox revenues and commercial development of station areas
BTS Group Investor Presentation Prepared by BTS Group IR 45
AppendicesAppendix 3: Core Network Ridership
Uninterrupted revenue growth and resilient under pressure
Farebox revenue (THB bn) Ridership (mn)
GROWTH (18 YRS)
Farebox revenue CAGR: 9.3%
Ridership CAGR: 8.2%
238 241 241
233
215 219
197
176
6.96
6.82
6.64
Ridership
6.40
139 144 145 (0.1)%
136
5.87
132 133
5.68
YoY
118
105
4.90
96 Fare
4.30
79 +2.4%
YoY
3.54
59
3.48
3.29
3.22
3.07
2.82
2.57
2.29
2.12
1.78
1.42
00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19
Jan-Mar 14 : Apr 17 : Dec 18 :
Bangkok Aug 16 : Opening Opening of
Dec 99 : BTS SkyTrain Shutdown Opening of of Samrong Southern
Jul 04 : Mar 07 : May 09 : May 10 : Aug 11 : On Nut Station
service opening Bangkok extension
Opening of First fare Opening of Opening of – Bearing May 14 :
Martial law MRT System Aug 17 :
Bangkok MRT rate Silom Line Bangkok extension (Purple line) Opening of
System (Blue increase extension BRT; opening Apr 13 : Sale of net farebox Oct 16 :
line) Tao Poon
Thai political revenue to BTSGIF
Oct – Nov 11 : The passing of Station (Blue
protests Jun 13 :
Floods His Majesty line ext.)
Aug 10 : Fare increase King Bhumibol
Opening of Nov 13 : Thai political Oct 17 :
Airport Rail protests Fare
Link Dec 13 : Wongwian Yai – Increased
Bang Wa extension opening
INITIAL GROWTH (3 YRS RIDERSHIP CAGR: 21%) STABLE GROWTH (5 YRS RIDERSHIP CAGR: 5%) FASTER GROWTH (10 YRS RIDERSHIP CAGR 6%)
BTS Group Investor Presentation Prepared by BTS Group IR 46
AppendicesAppendix 4: Core Network Fare Adjustment
Flexibility to increase fares
FARE ADJUSTMENT MECHANISM DISTANCE-BASED FARE (BY NO. OF STATIONS)
60.3
EFFECTIVE FARE 53.6
Can be adjusted no more than once every 18 months by making 46.9
announcement to BMA and public 30 days in advance
Must not exceed the Authorised fare 40.2
44.0
33.5
40.0
37.0 42.0
FARE PRICE (THB)
AUTHORISED FARE 26.8 33.0 37.0
34.0 AUTHORISED FARE (APR 2013)
30.0
20.1 31.0 NEW EFFECTIVE FARE (OCT 2017)
Normal situation : upon change of Bangkok’s CPI >=5%, may adjust up to 23.0 26.0 28.0 PREVIOUS EFFECTIVE FARE (JUN 2013)
7% (No approval required) 16.0 25.0
Special situation : upon change of CPI (>= 9%), USD/THB foreign 22.0 POTENTIAL FARE UPSIDE
15.0
exchange rate, interest rate or electricity costs (BMA approval required)
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
NO. OF STATIONS
HISTORICAL AVERAGE FARE
• CAGR 5 yr (2013/14 to 2018/19) = 1.9%
THB / Trip
RIDERSHIP BY TICKET TYPES (FY 2018/19)
• CAGR 13 yr (2005/06 to 2018/19)= 2.4%
ONE-DAY PASS 1%
30-DAY PASS (STUDENT)* 5%
AVG FARE THB 36.8
AVG FARE THB 22.2
29.0
28.3
27.9
27.5
26.9
26.4
24.8
24.4
24.4
24.3
24.22
24.1
22.1
21.4
30-DAY PASS (ADULT)* 29%
AVG FARE THB 27.4 SJT 33%
AVG FARE THB 32.6
PURSE (STV)* 32%
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
AVG FARE THB 27.6
* Counted as Rabbit (66%)
BTS Group Investor Presentation Prepared by BTS Group IR 47
AppendicesAppendix 5: Rolling Stocks
64 trains are currently in service for green line network
98 4-CAR TRAINS (392 CARRIAGES) 72 4-CAR MONORAIL TRAINS
FOR GREEN LINE CORE NETWORK (288 CARRIAGES)
AND EXTENSION ZONE 1 & 2 FOR PINK AND YELLOW LINES
CURRENT FLEET NO. OF TRAINS TOTAL CARRIAGES FROM PROJECT REQUIRED TRAINS TOTAL CARRIAGES FROM
1ST BATCH 35 105 SIEMENS PINK 42 168 BOMBARDIER
2ND BATCH 12 48 CRRC YELLOW 30 120 BOMBARDIER
3RD BATCH 35 SIEMENS TOTAL 72 288
4TH BATCH 5 20 CRRC
10,000 – 44,000 PPHPD: SERVICE CAPACITY
TOTAL 52 208
FLEET EXPANSION NO. OF TRAINS TOTAL CARRIAGES FROM
DELIVERED BY 22 88 SIEMENS
FY 18/19
DELIVERED BY 24 96 CRRC
FY 19/20
TOTAL 46 184
50,000 PPHPD: SYSTEM DESIGN CAPACITY (6-CAR TRAINS & 2MIN FREQUENCY)
25,000 PPHPD: CURRENT CAPACITY (4-CAR TRAINS & 2.4MIN FREQUENCY)
NOTE: PPHPD = Passengers per Hour per Direction
BTS Group Investor Presentation Prepared by BTS Group IR 48
AppendicesAppendix 6: Mass Transit Economic profile
PPP Net Cost & O&M contract (PPP Gross Cost)
ECONOMIC PROFILE (O&M CONTRACT)
Rolling stocks Investment O&M revenue
KEY ASSUMPTIONS
1) 30-year contract from operating
date
2) O&M revenue* of approx. THB
140mn/km in FY 16/17 with
growth rate of 3.5% p.a.
YEAR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
3) EBITDA margin of 40-50%
*O&M revenue includes revenue from provision of operating services and interest income under concession
agreement
ECONOMIC PROFILE (PPP NET COST WITH SUBSIDY)
E&M works Civil works Repayment of gov't subsidy (civil) Farebox revenue
KEY ASSUMPTIONS
1) 3-4 year investment in civil and
E&M works (includes rolling
YEAR stocks)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
2) 10-year repayment from gov’t
for civil works
3) Receive farebox revenue and
commercial revenue (30-year
contract from operating date)
BTS Group Investor Presentation Prepared by BTS Group IR 49
AppendicesAppendix 7: Gold Line Phase 1
Project at a glance
TIMELINE
Route Krung Thon Buri – Klong San
(Phase I): 1.8km 3 stations
No. of Stations 3 overground stations (G1 to G3) 15 DEC 2017
• G1: Krung Thon Buri KT awarded civil contract
to ITD
• G2: Charoen Nakorn
• G3: Klong San 27 FEB 2018
Sale and installation of E&M
Type Monorail Feeder Line
works Agreement signed
GOLD PHASE 1 Three 2-Car Automatic People Mover (APM)
Trains
trains 9 MAR 2018
KRUNG THONBURI BTS STATION System Civil work construction began
– KHLONG SAN 1.8KM 4,000-12,000 pphpd (5-6 min headway)
Capacity
E&M AND O&M SERVICES PROVIDED BY BTSC 31 JUL 2018
O&M Services Agreement
Sale and installation of E&M works agreement signed
• E&M value (incl.VAT) of THB 765.59mn
1 AUG 2018
O&M services agreement NTP issued for E&M kick-off
• 30 years from 1st commercial operation date
• O&M services include the operation of trains, 1 SEP 2020
management, maintenance of the mass transit system, Targeted Commercial
fare collection and the procurement of rolling stock Operation Date
• O&M value (incl.VAT) of THB 13,520mn (30 years operation*)
Source: http://www.raillynews.com
*Such term can be terminated earlier if the operation and maintenance services agreement of the Bangkok Mass Transit System, in which BTSC has been engaged by Krungthep Thanakom until 2 May 2042, has not
been extended.
BTS Group Investor Presentation Prepared by BTS Group IR 50
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