A Strong Foundation for the Limitless Potential of the Future - - PowerPoint PPT Presentation

SLIDE 1

A Strong Foundation for the Limitless Potential

• f the Future Integrated Transportation System

March 2016

SLIDE 2

2

Company Overview

• Amalgamation of BECL and BMCL
• Transfer all Rights, Duties,

Assets, Liabilities, etc. to BEM

• Major shareholders (as of Dec 30, 2015)
• 1. CK

27.47%

• 2. MRTA

8.22%

• 3. KTB

6.85%

• BEM Paid-up Capital 15,285 MB.
• Market Cap apx 80,246 MB. (as of Feb 29, 2016)
• Currently in SET100, SETHD, MSCI Global
• Foreign Limit 49%
• Dividend Policy 40% of Net Profit
• First Trading day on Jan 5, 2016

99.99% 65.19% 19.57% 19.40% 7.50%

Investments as of Dec 31, 2015

SLIDE 3

3

Overview of Expressway Business

Expressway Network Distance (km) Operator

• 1. First Stage Expressway System (FES)

27.1 EXAT

• 2. Second Stage Expressway System (SES)

38.5 BEM

• 3. Northern Stage Expressway

(C+ - Bang Pa In – Pak Kret Expressway) 32.0 NECL

• 4. Don Muang Tollway (DMT)

28.0 DMT

• 5. Ramindra-Atnarong Expressway (RAE)

32.9 EXAT

• 6. Ramindra-Outer Ring Road Expressway

9.5 EXAT

• 7. Bang Pli - Suksawad Expressway

(Southern Outer Bangkok Ring Road) and Highway No. 37 (Suksawad-Bang Khun Thien Section) 42.3 EXAT

• 8. Bangna-Chonburi Expressway

56.7 EXAT

• 9. Si Rat – Outer Ring Road Expressway (SOE)

16.7 BEM Total 283.7

• BEM is the largest private expressway operator in Thailand.
• More than 1-million journeys a day in BEM toll road system.
• BEM is now an operator of
• SES (Sector A-B-C-D) under two concession agreements ending in 2020 and 2027 respectively, and
• SOE, under construction and expect to start operation in 2016
• BEM shares 40% of Toll Revenue from FES Toll road under SES Concession
• NECL, a subsidiary of BEM, is an operator of Bangpain-Pak Kret expressway (Sector C+) under a concession agreement

ending in 2026.

SLIDE 4

4

Highlights of Expressway Business

7,811 7,308 7,732 8,040 8,485 8,815 975 1,025 1,085 1,100 1,104 1,142

2010 2011 2012 2013 2014 2015

Toll Revenues (MB.) Traffic ('000 Trips/Day)

Remaining Concession Period Toll Revenues & Traffic

Financial Strength

2042 2027 2026 FES & SES (Sector A-B-C) Udonrattaya (Sector C+) SES Extension (Sector D) Sirat Outer Ring (SOE) 2016 2020

Toll Revenues Existing Projects

( FES&SES&C+)

 Reliable cash revenues  Toll revision every 5 years  Right to extend the contract for 10 years twice SOE Project  East-West Corridor linking between Bangkok city and its vicinity area  Operated by BEM Traffic  Steady traffic growth  CAGR = 3.21% (2010 - 2015)  SOE expected by 2016

• EXAT is responsible for Land acquisition matter
• 100% revenues to BEM, but sharing with EXAT

if 13.5% < FIRR ≤ 15.5%, 30% of its NCF that exceeds 13.5% in such year(s) if FIRR > 15.5%, 50% of its NCF that exceeds 15.5% in such year(s)

• Toll increased every 5 years (Fixed amount)

New Project: SOE (expect to operate in Aug 2016)

• 30-year concession (15 Dec 2012 – 2042) under BTO basis
• Project cost 25,491 MB.
• Construction Cost 22,500 MB. ( Construction period 48 months)
• 16.7 kms. with 3-dual lanes, 10 toll plazas (Inbound=6, Outbound=4)

East-West Corridor linking between Bangkok city and its vicinity Y2012 Y2013 Y2014 Y2015 Y2016 Y2017 Total CAPEX PLAN 2,325 1,889 6,469 9,168 5,580 60 25,491

2042

SLIDE 5

5

Total Traffic Volume

850.00 900.00 950.00 1,000.00 1,050.00 1,100.00 1,150.00 1,200.00 2016 1,142.40 1,179.80 1,160.48 2015 1,111.19 1,176.00 1,176.01 1,071.98 1,115.40 1,134.17 1,137.05 1,136.33 1,158.60 1,150.01 1,191.13 1,144.46 1,141.60 3.44% 2014 1,031.70 1,087.94 1,119.93 1,042.91 1,065.67 1,098.37 1,099.77 1,123.07 1,137.47 1,139.18 1,166.66 1,130.11 1,103.61 0.35% 2013 1,096.67 1,118.06 1,154.52 1,040.52 1,093.29 1,115.48 1,102.26 1,124.83 1,099.62 1,103.68 1,116.60 1,032.07 1,099.72 1.40% 2012 1,069.13 1,115.75 1,116.60 1,012.94 1,065.71 1,079.80 1,089.18 1,079.71 1,080.32 1,080.88 1,136.63 1,089.37 1,084.58 5.83% 2011 995.60 1,033.40 1,065.36 960.00 999.94 1,053.24 1,036.88 1,054.36 1,077.17 903.29 1,032.59 1,088.16 1,024.00 %YoY 16/15 2.81% 0.32% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg. % YoY

(Thousand trips / Day)

2014 2011 2012 2013 2015 2016

SLIDE 6

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Total Toll Revenue

15.00 17.00 19.00 21.00 23.00 25.00 27.00

2016 24.23 25.02 24.61 2015 23.48 24.86 24.87 22.71 23.58 23.93 24.01 24.03 24.45 24.31 25.26 24.31 24.14 3.83% 2014 21.73 22.89 23.57 21.95 22.43 23.05 23.12 23.69 23.95 24.03 24.65 23.94 23.25 5.56% 2013 21.37 21.83 22.54 20.36 21.33 21.79 21.56 22.02 23.03 23.10 23.58 21.80 22.03 4.28% 2012 20.81 21.64 21.72 19.76 20.68 20.96 21.17 21.05 21.05 21.04 22.24 21.36 21.12 5.45% 2011 22.24 23.05 20.66 18.68 19.37 20.35 20.15 20.44 20.88 17.30 16.55 20.87 20.03 %YoY 16/15 3.18% 0.66% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg. % YoY

(Million Baht / Day)

2014 2011 2012 2013 2015 2016

SLIDE 7

7

Expressway : Total Traffic Volume

YoY Feb-16 Feb-15 Change % FES

383,660 387,471

• 3,811
• 0.98%

Sector A

225,212 229,131

• 3,919
• 1.71%

Sector B

105,762 107,443

• 1,681
• 1.56%

Urban

714,634 724,045

• 9,411
• 1.30%

Sector C

196,689 191,948 4,741 2.47%

Sector D

188,876 185,476 3,400 1.83%

Sub urban

385,565 377,424 8,141 2.16%

Total BEM

1,100,202 1,101,469

• 1,267
• 0.12%

Total NECL (C+)

79,595 74,531 5,064 6.79%

Total BEM+NECL

1,179,797 1,176,000 3,797 0.32%

YTD 2M-16 2M-15 Change % FES

377,185 376,606 579 0.15%

Sector A

222,850 223,260

• 410
• 0.18%

Sector B

103,802 104,354

• 551
• 0.53%

Urban

703,837 704,220

• 382
• 0.05%

Sector C

192,965 186,022 6,944 3.73%

Sector D

185,588 179,527 6,061 3.38%

Sub urban

378,553 365,548 13,005 3.56%

Total BEM

1,082,392 1,069,768 12,624 1.18%

Total NECL (C+)

78,085 72,180 5,906 8.18%

Total BEM+NECL

1,160,477 1,141,948 18,529 1.62%

Trips/Day Trips/Day

SLIDE 8

8

Expressway : Total Traffic Volume

YoY Q4/15 Q4/14 Change % FES

378,273 378,035 238 0.06%

Sector A

222,656 223,158

• 502
• 0.22%

Sector B

102,913 103,731

• 818
• 0.79%

Urban

703,842 704,924

• 1,082
• 0.15%

Sector C

195,170 188,333 6,837 3.63%

Sector D

182,425 177,510 4,916 2.77%

Sub urban

377,595 365,842 11,753 3.21%

Total BEM

1,081,437 1,070,769 10,669 1.00%

Total NECL (C+)

80,113 74,315 5,799 7.80%

Total BEM+NECL

1,161,550 1,145,083 16,467 1.44%

Trips/Day Trips/Day YoY 2015 2014 Change % FES

374,874 364,559 10,314 2.83%

Sector A

221,119 217,361 3,758 1.73%

Sector B

101,997 100,939 1,057 1.05%

Urban

697,989 682,860 15,130 2.22%

Sector C

189,170 183,331 5,840 3.19%

Sector D

179,373 167,254 12,120 7.25%

Sub urban

368,544 350,584 17,959 5.12%

Total BEM

1,066,533 1,033,445 33,088 3.20%

Total NECL (C+)

75,078 70,161 4,918 7.01%

Total BEM+NECL

1,141,612 1,103,606 38,006 3.44%

SLIDE 9

9

Expressway : Total Toll Revenue

YoY Feb-16 Feb-15 Change % FES

7,786,002 7,872,662

• 86,660
• 1.10%

Sector A

4,420,227 4,500,623

• 80,396
• 1.79%

Sector B

2,134,986 2,167,848

• 32,862
• 1.52%

Urban

14,341,215 14,541,133

• 199,918
• 1.37%

Sector C

2,648,097 2,577,770 70,327 2.73%

Sector D

4,514,147 4,435,092 79,055 1.78%

Sub urban

7,162,244 7,012,862 149,382 2.13%

Total BEM

21,503,459 21,553,995

• 50,536
• 0.23%

Total NECL (C+)

3,516,755 3,302,083 214,672 6.50%

Total BEM+NECL

25,020,214 24,856,078 164,136 0.66%

YTD 2M-16 2M-15 Change % FES

7,653,767 7,650,559 3,208 0.04%

Sector A

4,372,996 4,383,747

• 10,750
• 0.25%

Sector B

2,094,840 2,104,706

• 9,866
• 0.47%

Urban

14,121,603 14,139,012

• 17,408
• 0.12%

Sector C

2,598,495 2,498,966 99,529 3.98%

Sector D

4,431,839 4,287,561 144,278 3.37%

Sub urban

7,030,334 6,786,527 243,807 3.59%

Total BECL

21,151,937 20,925,538 226,399 1.08%

Total NECL (C+)

3,458,938 3,207,872 251,066 7.83%

Total BEM+NECL

24,610,876 24,133,411 477,465 1.98%

(Baht / Day) (Baht / Day)

SLIDE 10

10

Expressway : Total Toll Revenue

YoY Q4/15 Q4/14 Change % FES

7,675,999 7,681,565

• 5,566
• 0.07%

Sector A

4,367,102 4,380,567

• 13,465
• 0.31%

Sector B

2,075,502 2,090,439

• 14,937
• 0.71%

Urban

14,118,603 14,152,571

• 33,968
• 0.24%

Sector C

2,625,797 2,530,208 95,589 3.78%

Sector D

4,348,804 4,233,218 115,585 2.73%

Sub urban

6,974,601 6,763,427 211,174 3.12%

Total BEM

21,093,203 20,915,998 177,205 0.85%

Total NECL (C+)

3,525,445 3,283,863 241,582 7.36%

Total BEM+NECL

24,618,649 24,199,861 418,788 1.73%

(Baht / Day) (Baht / Day) YoY 2015 2014 Change % FES

7,611,277 7,405,962 205,315 2.77%

Sector A

4,340,094 4,266,030 74,064 1.74%

Sector B

2,057,471 2,032,039 25,433 1.25%

Urban

14,008,842 13,704,031 304,811 2.22%

Sector C

2,542,910 2,465,703 77,207 3.13%

Sector D

4,282,251 3,977,222 305,029 7.67%

Sub urban

6,825,161 6,442,925 382,236 5.93%

Total BEM

20,834,003 20,146,956 687,047 3.41%

Total NECL (C+)

3,310,380 3,103,398 206,982 6.67%

Total BEM+NECL

24,144,383 23,250,354 894,029 3.85%

SLIDE 11

11

Mass Rapid Transit Master Plan 12 Lines Distance (km) Stations Red Line (Thammasat-Mahachai) 80.8 36 Light Red Line (Salaya-Hua Mak) 58.2 22 ARL Bang Sue Phaya Thai-Suvarnabhumi Airport 36.4 10 Green Line (Lamlukka-Samut Prakan) 66.5 55 Light Green (Yotse-Bang Wa) 15.5 14 Blue Line (Exsiting+Extension) (Bang Sue-Hua Lamphong - Tha Phra-Bang Khae) 55 42 Purple Line (Bang Yai-Rat Burana) 42.8 32 Orange Line (Talingchan-Min Buri) 37.5 27 Pink Line (Kae Rai-Min Buri) 36 24 Yellow Line (Lat Phrao-Samrong) 30.4 21 Grey Line (Watcharaphon- Rama IX bridge) 26 21 Light Blue Line (Din Deang- Sathorn) 9.5 9 Total (Km.) 494.6

• At present, only four mass transit systems are operational.
• BEM is granted two concession agreements to construct and operate
• Initial Blue Line (IBL) with the rights to operate commercial development, ending in 2029, and
• Purple Line, which is now under construction and expected to start operation in 2016
• BEM is expecting a negotiation with MRTA on terms of concession agreement to be an operator of Blue Line Extension (BLE).
• Substantial investment opportunities in new mass transit system due to concrete progress in project development supported

by various authorities i.e. MRTA, SRT, and BMA : BEM is the operator

Source : http://www.otp.go.th, www.mrta.co.th , www.srtet.co.th

SLIDE 12

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Metro Map

Projects Distances Km. Stations Trains Cars Status Operated (Year) Operator Blue Line (Bang Sue-Hua Lamphong) 20 18 19 57 Operating 2004 BEM Airport Rail Link 28.5 8 9 Operating 2010 SRT Green Line 34 52 208 Operating 1999 BTS

·Mochit-On nut-Bearing

22

·National Stadium-Saphan Taksin-Bang Wa

14 Total (Km.) 84.5

Existing Metro Lines

Projects Distances Km. Stations Trains Cars Status Operated (Year) Operator Purple Line Z(Bang Yai-Bang Sue) 23 16 21 63 Test-Run To be opened Aug 2016 BEM Blue Line (Extension)

·Bang Sue -Tha Phra

13 9 30 90 Constructing 2019 BEM (to be negotiated)

·HuaLamphong-Bang Khae

14 11 Constructing Red Line Bang (Sue-Rang Sit) 26.3 8

• Constructing

2019 N/A Green Line

·Baring-Samut Prakan

13 9

• Constructing

2020 N/A

·Mochit-Saphan Mai-Khu Khot

19 16

• Constructing

Total (Km.) 108.3

5 more Lines under construction

SLIDE 13

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20 20 20 20 20 23 23 23 23 27 27 27 20 20 20

10 2015 2016 2018-19F 2020-21F 2021-22F

BEM’s rail service by distance (Kms.)

Blue line (IBL) Purple line Blue line-Extensions 1 Orange line Purple line-extensions 1 Blue line-extension 2 Future Expected

1,525 1,646 1,979 2,106 2,248 2,374 211 221 253 272 291 300

2010 2011 2012 2013 2014 2015

WD Ridership (‘000)

Highlights of Mass Transit Business

Farebox Revenues & Ridership

High Potential Growth

• Under Construction
• PPP Gross Cost
• Services Revenue

(Cost + 10.5% margin)

• Operational within Aug 2016
• Concession period 30 years

(2013 - 2043)

Purple Line

Tao Poon – Bang Yai

• To be negotiated with

MRTA

• Operational within 2019

Blue Line Extension

Hua Lamphong – Bang Khae Bang Sue – Tha Phra Other projects under development, expected to open for bidding soon Orange Line Yellow Line Pink Line Purple Line Extension

Farebox revenues & Ridership  Organic ridership growth 7-10%  Fares revision every 2 years  Additional revenues from Purple line operation in 2016  Passengers fed to Initial Blue Line Expected Service by Distance  Purple line operated in Aug 2016  Blue line extension partially

• perated in 2018 (full in 2019)

Initial Blue Line

Hua Lamphong – Bang Sue

• Operated
• PPP Net Cost
• Income source : Ridership
• COD : July 3, 2004
• Concession period 25 years

(2004 - 2029)

SLIDE 14

14

Metro : Average Daily Ridership : Initial Blue Line (IBL)

140.00 160.00 180.00 200.00 220.00 240.00 260.00 280.00 300.00

2016 254 278 265 2015 245 269 269 238 239 269 266 261 275 277 273 245 260 2.79% 2014 278 293 262 233 234 247 243 241 256 264 253 237 253 6.94% 2013 222 239 239 216 225 242 238 245 243 251 257 225 237 7.53% 2012 208 223 230 194 208 224 231 222 227 233 236 206 220 16.21% 2011 178 193 204 166 173 202 200 205 215 176 157 204 189 % YOY 16/15 3.73% 3.08% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg. % YOY (Thousand trips / Day)

2014 2011 2012 2013 2015 2016

SLIDE 15

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Metro : Average Daily Revenue : Initial Blue Line (IBL)

3.00 4.00 5.00 6.00 7.00 8.00

2016 6.45 6.98 6.71 2015 6.19 6.74 6.71 6.02 5.91 6.53 6.33 6.47 6.84 6.93 6.75 5.94 6.44 5.20% 2014 6.75 7.07 6.34 5.73 5.74 5.95 5.86 5.85 6.16 6.37 6.05 5.67 6.12 6.68% 2013 5.39 5.79 5.75 5.33 5.49 5.86 5.78 5.91 5.92 6.10 6.17 5.41 5.74 19.92% 2012 4.95 5.24 5.37 4.77 4.93 6.02 5.29 5.20 5.30 5.65 5.60 4.91 4.79 5.88% 2011 4.30 4.66 4.79 4.06 4.23 4.76 4.75 4.87 5.07 4.15 3.79 4.77 4.52 %YoY 16/15 4.24% 3.66% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg. %YoY (Million Baht / Day)

2014 2011 2012 2013 2015 2016

SLIDE 16

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Overview of Commercial Development Business

Advertising Telecommunications Retail Spaces

• Retail Spaces in 11 MRT

Stations & 1 Park & Ride Building

• Current Retail Spaces

: 5 stations

• Coming up

: 2 stations

• Mobile phone Network
• High Speed Internet
• Wi-Fi Services
• Telecommunications Signal

System (2G, 3G, 4G)

• Future Internet Technology

18 Stations & 19 Trains

• Static Media
• Digital Media
• Creative & Innovative

Design New Media : DIGITAL

• 119 Screens in 18 stations

SLIDE 17

17

53% 29% 18%

Revenue Structure

(As of 2015)

Advertising Telecommunications Retail Spaces

451 501 549

2013 2014 2015

Commercial Development

CD Revenues

Unit: MB.

Highlights of Commercial Development Business More rooms to grow

Advertising  Revenue increased by eyeballs  Rooms to grow outside MRT CD revenues  CAGR = 10.33% (2013-2015)  New CD expected by 2016 Telecommuni cations  Steady CF  Long term contracts Retails  Rental rates increased by ridership's traffic  Open more locations

• Rights to Operate Commercial

Development (To be negotiated with MRTA) Blue Line Extension Hua Lamphong – Bang Khae Bang Sue – Tha Phra

Future Projects

• Rights to Operate Commercial

Development (To be negotiated with MRTA) Purple Line Tao Poon – Bang Yai CD projects outside MRT

• Advertising outside MRT, ie.

Expressway.

• Retails business
• Telecommunications

SLIDE 18

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BEM : Financial Highlights

Consolidated (Unit : MB.) 2015 2014 %CHANGE Revenue :- Toll Revenue 8,815 8,485 3.89% Fare Box Revenue 2,374 2,248 5.60% Commercial Development Revenue 549 501 9.58% Others 1,367 650 110.31% Total Revenue 13,105 11,884 10.27% Expense :- Costs of toll (1,239) (1,102) 12.43% Costs of fare box (1,445) (1,370) 5.47% Costs of commercial development (210) (186) 12.90% Amortization – expressway (3,423) (3,327) 2.89% Amortization – IBL (778) (573) 35.78% Selling (79) (54) 46.30% Administration (1,036) (869) 19.22% Profit before share of profit from investments in associates, financial cost and income tax expenses 4,895 4,403 11.17% Share of profit (loss) from investments in associates 461 546

• 15.57%

EBIT 5,356 4,949 8.22% Financial Cost (1,934) (1,437) 34.59% Income tax expenses (721) (702) 2.71% Profit for the Period 2,701 2,810

• 3.88%

Profit/(Loss) Attributable to Non-controlling interests 51 65

• 21.54%

Profit Attributable to Equity Holders of the Company 2,650 2,745

• 3.46%

EPS (Baht) 0.173 0.180

• 3.46%

BEM : Financial Ratio

• Net Profit Margin : 20.22%
• ROA : 3.65%
• ROE : 9.76%
• D/E : 1.68

SLIDE 19

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Investment Project

TTW TTW Plc. CKP (CK Power Plc.) BEM owns 19.40% in CKP (3,223 MB.) * Stated at cost

Total registered 9,240 MB./Paid up capital : 7,370 MB. Effective Equity MW : 874.5 MW

BEM also owns CKP 4.89% indirectly through TTW

XPCL Xayaburi Power Co., Ltd. SEAN

Southeast Asia Energy Co., Ltd.

BIC

Bangpa-In Cogeneration Co., Ltd.

BKC

Bangkhenchai Co., Ltd.

CRS

Changrai Solar Co., Ltd.

NRS

Nakorn Rachasima Solar Co., Ltd.

XPCL

Xayaburi Power Co., Ltd

Investment Type

TTW : BOO PTW : BOOT

TWO : Operational Agreement

Holding Company (75% in NN2) BOOT PPA

( 615 MW.)

BOO PPA

BIC1: 117.5 MW. BIC2: 120 MW.

BOO PPA

(8 MW.)

BOO PPA

(8 MW.)

BOO PPA

(6 MW.) BOOT Concession (1,285 MW.)

BOOT Concession (1,285 MW.)

% of Possession as of December 31, 2015

19.57%

(4,303 MB.)

* Stated at cost

56% 65% 100% 30% 30% 30% 7.50%

(913 MB.)

* Stated at cost

Concession date

2004 2013 BIC1: 2013 BIC2: 2017 2012 2013 2012 N/A N/A

Concession period

30 years 25 years 25 years 5 years + renewal

• ption

5 years + renewal

• ption

5 years + renewal

• ption

29 years 29 years

Customer

PWA Industrial Estates EGAT EGAT, Industrial customers PEA PEA PEA EGAT/EDL EGAT/EDL

BOI Privilege

8 years

Tax Exempt from Laos PDR Government

8 years 8 years 8 years 8 years

Tax Exempt from Laos PDR Government

Tax Exempt from Laos PDR Government

Registered capital (MB.)

3,990 6,607 2,705 234 292 222 26,861 26,861

Paid-up Capital (MB.)

3,990 6,607 1,707 234 277 188 12,175 12,175

Project Investment

SLIDE 20

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Disclaimer

The information in this presentation has been prepared by Bangkok Expressway and Metro Public Company Limited (BEM) and is general background information about BEM’s activities current as at date of this presentation. This presentation is not intended to provide the basis of any investment decision, nor to substitute your own analysis and investigation and should not be considered as a recommendation to any recipient of this presentation. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. All securities or instrument transactions 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 a promise or representation of BEM as to the future.

SLIDE 21

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Thank you

For further inquiry www.bemplc.co.th Email : ir@bemplc.co.th