BTS GROUP HOLDINGS PCL 4Q & FY 2018/19 EARNINGS PRESENTATION 30 - - PowerPoint PPT Presentation

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BTS GROUP HOLDINGS PCL 4Q & FY 2018/19 EARNINGS PRESENTATION 30 - - PowerPoint PPT Presentation

BTS GROUP HOLDINGS PCL 4Q & FY 2018/19 EARNINGS PRESENTATION 30 MAY 2019 Disclaimer Investment involves risk. Prospective should understand the characteristics of Securities and study information about BTS Group Holdings Public Company


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SLIDE 1

BTS GROUP HOLDINGS PCL

4Q & FY 2018/19 EARNINGS PRESENTATION 30 MAY 2019

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SLIDE 2

prepared by Investor Relations department BTS Group Holdings PCL

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

  • r a solicitation to sell or exchange any securities of BTS Group Holdings 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

  • r otherwise revise any such information to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof. None of the

Company or any of its subsidiaries or any of their respective directors, officers, employees or agents shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation and any and all such liability is expressly disclaimed. The information contained herein must be kept strictly confidential and may not be reproduced or redistributed in any format without the express written approval of the Company. Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to the Company’s corporate plans, strategies and beliefs and other statement that are not historical facts. These statement can be identified by the use of forward-looking terminology such as “may”, “will”, “expect” , “intend”, “estimate”, “continue”, “plan” or other similar words. The statements are based on the assumptions and beliefs of the Company’s management in light of the information currently available to the Company. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this Presentation is, or should be relied

  • n as promise or representation of the Company as to the future.

BTS Group Earnings Presentation 2

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SLIDE 3

prepared by Investor Relations department BTS Group Holdings PCL

Agenda

BTS Group Earnings Presentation 3

4Q AND FY 2018/19 FINANCIAL PERFORMANCE SECTION 1 BUSINESS UPDATES SECTION 2 APPENDICES SECTION 3

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SLIDE 4

prepared by Investor Relations department BTS Group Holdings PCL

FY 2018/19 Highlights

4 BTS Group Earnings Presentation Section 1: 4Q & FY 2018/19 Financial Performance

Strong growth in revenue and profitability Operating Revenue of THB 47.9bn +29% YoY Net Recurring Profit (after MI)

  • f 3.2bn

FINANCIAL POSITION Balance sheet Expansion and Strength Cash & Liquid Investments of THB 18.7bn Adjusted Net D/E 1.03x Low leverage despite the increase in debt Investment phase continues; Net investment in Pink & Yellow Lines of THB 24.6bn Net investment in Green Line Extensions THB 4.1bn Investment in Kerry Express Thailand THB 5.0bn P&L HIGHLIGHTS 12M CASH FLOW +240% YoY +49% YoY Operating EBITDA of 6.1bn Balance Sheet expansion by 36%

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SLIDE 5

prepared by Investor Relations department BTS Group Holdings PCL

FY 18/19 Key Milestones

5 BTS Group Earnings Presentation Section 1: 4Q & FY 2018/19 Financial Performance

2018 BTS GROUP MASS TRANSIT PROPERTY

JUN – JUL

MEDIA

Jun: Received the Notice-to- Proceed for Pink and Yellow Lines Jul: Received 30-year O&M Contract of Gold Line Phase 1 Jul: MACO acquired “Trans. Ad Group” in order to support its digital media expansion domestically and internationally

SEP – DEC

Oct: U City EGM approved (i) the capital reduction to clear its deficit in order to pay dividend in the future and (ii) reverse-stock split to facilitate U’s trading liquidity

JAN – MAR

Feb: Interim dividend of THB 0.17 per share was paid. Feb: VGI partnered with LAWSON to establish O2O ecosystem through Lawson Stores Mar: Submitted U-Tapao International Airport and Eastern City Development Project bid Sep: BTSG was selected as a member of DJSI EM 2018 Mar: VGI acquired 18.6% stake in “PlanB”, valued THB 4.6bn

APR - MAY

Apr: U City Entered into the Share Sale and Purchase Agreement to dispose ordinary shares of Mo Chit Land, to STEC, worth THB 4.3bn May: BoD approved final dividend THB 0.25 per share and the issuance of BTS-W5, exercise price at THB 14

(subject to shareholders’ approval)

May: Disposed Bayswater JV shares to CPN, worth THB 7.7bn Dec: Full operation of the Southern Green Line extension (Bearing – Kheha), totalling 12.6km, 9 stations Mar: New JV “VGI AnyMind” to incorporate AI solutions in advertising Apr: New JV “VClick” to capture advertising opportunity in Chinese consumer market May: THB 13bn first Thai Green Bond issued (avg. coupon rate 3.41%) Jul: VGI completed 23% acquisition of Kerry Express Thailand, total purchase price

  • f THB 5.9bn

2019

Oct: VGI launched new features of Rabbit Line Pay which enable RLP users to top up BTS cards through RLP Nov: BTS-W4 issued, with exercise price at THB 10.50 Sep: THB 9.5bn debenture issued (avg. coupon rate 3.38%) Apr: U City entered into share sales and purchase agreement to acquire hotels in Germany and Switzerland

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prepared by Investor Relations department BTS Group Holdings PCL

OPERATING REVENUE COMPARISON (YoY)

INCOME STATEMENT (THB mn) FY 2018/19 FY 2017/18 % YoY 4Q 2018/19 4Q 2017/18 % YoY 3Q 2018/19 %QoQ Operating Revenue1 47,923 14,102 240% 10,033 3,574 181% 19,035 (47)% Gross operating profit 7,869 5,778 36% 2,270 1,652 37% 2,305 (2)% Operating EBITDA2 6,106 4,089 49% 1,719 1,154 49% 1,858 (7)% Recurring net profit – after MI 3,248 2,508 29% 967 810 19% 980 (1)% Accounting EBITDA 6,876 7,571 (9)% 1,736 3,367 (35)% 2,345 (6)% Net income (loss)3 2,873 4,416 (35)% 628 2,472 (75)% 1,189 (47)% Gross operating profit margin (%) 16.4% 41.0% 22.6% 46.2% 12.1% Accounting EBITDA margin (%) 13.9% 42.3% 16.9% 56.0% 12.0% Recurring net profit margin – after MI(%) 6.6% 16.0% 9.3% 19.6% 5.1% Operating EBITDA margin (%) 12.7% 29.0% 17.1% 32.3% 9.8%

P&L SNAPSHOT

FY 2018/19 OPERATING REVENUE BREAKDOWN

1 operating revenue of 4 BUs & share of net profit from BTSGIF 2 excluding non-mass transit interest income 3 to equity holders of the parent

6

4Q and FY 2018/19 Overview

86% Mass Transit 11% Media 1% Property 2% Services BTS Group Earnings Presentation Section 1: 4Q & FY 2018/19 Financial Performance

14,102 47,923 32,216 1,221 (279) 663 FY17/18 Mass Transit Media Property Services FY18/19 (44)% 148% 31% 354% (THB mn)

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prepared by Investor Relations department BTS Group Holdings PCL 9,458 (15,503)1 (17,596)2 27,757 (95) 4,0213 Beginning cash (31/3/18) CFO CFI CFF Others Ending cash (31/3/19) (THB mn)

1 CFO included

  • Corporate income tax of THB 1.2bn
  • Net interest expenses of THB 1.1bn
  • Net investment for construction of the Pink and Yellow Lines of THB 10.6bn
  • Net investment for E&M works and trains procurement for the Southern and Northern Green Line extensions of THB 4.1bn

2 CFI included net investment for construction of the Pink and Yellow Lines of THB 14bn 3 Excluding liquid investments of THB 14.7bn

CFI

  • Net investment for construction of the Pink and

Yellow lines of THB 14.0bn

  • Net cash paid for purchases of investments in

associates of THB 4.6bn, mainly for an investment in Kerry Express Thailand of THB 5.0bn

  • Dividend received of THB 1.7bn and Interest

income of THB 0.9bn

  • Net cash received of THB 0.4bn from sales of

treasury investment

FY 2018/19 Cash Flow Snapshot

7 CFF

  • An increase in loans from financial institutions and

B/E of THB 15.9bn mainly for the Pink & Yellow lines

  • Net cash received of THB 9.5bn from BTS debenture
  • Cash received of THB 4.5bn from (i) STEC and RATCH

(re. Pink and Yellow line projects) of THB 3.7bn and (ii) non-controlling interests for issuances of MACO’s

  • rdinary shares via RO of THB 0.7bn
  • Net cash received from VGI’s group of THB 3.2bn

from (i) non-controlling interests from the exercise of VGI warrants and (ii) the issuance of addional VGI’s

  • rdinary shares to Kerry Express Thailand
  • Dividend payment of THB 4.2bn

BTS Group Earnings Presentation Section 1: 4Q & FY 2018/19 Financial Performance CFO

  • Profit before tax of THB 4.4bn, deducted

by

  • Non-cash reconciling items of THB 0.8bn
  • Changes in net working capital of THB

16.8bn (this includes net investment in mass transit projects of THB 14.7bn)

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prepared by Investor Relations department BTS Group Holdings PCL Share in BTSGIF 2% O&M Construction revenue for Pink and Yellow Lines 74%

Mass Transit related Interest income 3%

HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS

  • The YoY revenue growth of 32.2bn or 354% was mainly from
  • Construction revenue for the Pink and Yellow lines of THB 30.7bn
  • Interest income related to Mass Transit rose by 114% or THB 576mn

to THB 1,078mn

  • O&M revenue increased by 29% or THB 515mn to THB 2,277mn,

chiefly as a result of the full opening of Southern Green Line ext. in Dec 18 and the contractually agreed increase in the operating fee of the existing ext.

  • Cost rose by THB 30.6bn to THB 36.9bn largely from the recognition of

construction cost for the Pink and Yellow Lines

  • Operating EBITDA margin was 10.9% (31.5% in FY 2017/18)

OPERATING PERFORMANCE

MASS TRANSIT (THB mn) FY 2018/19 FY 2017/18 %YoY 4Q 2018/19 4Q 2017/18 %YoY 3Q 2018/19 %QoQ Revenue 41,328 9,112 354% 8,140 2,159 277% 17,120 (53)% Costs of revenue 36,868 6,274 488% 6,821 1,389 391% 15,750 (57)% Gross profit 4,460 2,837 57% 1,319 770 71% 1,370 (4)% Operating EBITDA 4,498 2,872 57% 1,332 779 71% 1,378 (3)% Gross margin (%) 10.8% 31.1% 16.2% 35.7% 8.0% Operating EBITDA margin (%) 10.9% 31.5% 16.4% 36.1% 8.1%

OPERATING REVENUE BREAKDOWN

FY 2018/19

8

Mass Transit

Services revenue from provision

  • f E&M works &

train procurement for Green Line ext. 15%

5%

BTS Group Earnings Presentation Section 1: 4Q & FY 2018/19 Financial Performance

468 452 452 565 807 252 228 244 239 187 234 193 242 289 354 1,205 926 1,524 2,183 1,451 11,777 13,616 5,325 14 16 228 15 4Q 17/18 1Q 18/19 2Q 18/19 3Q 18/19 4Q 18/19 Others Construction revenue for Pink and Yellow Lines Services revenue from provision of E&M works & train procurement for Green Line ext. Mass Transit related interest income Share of net profit in BTSGIF O&M * Comprised of (i) Services revenue from provision of E&M works for Gold Line and (ii) Frebox from BRT

Others* 1%

*

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prepared by Investor Relations department BTS Group Holdings PCL

HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS

  • All-time high revenue of THB 5,123mn, an increase of 31% YoY driven

by organic growth in the OOH media segment and higher revenue from Digital Services segment

  • OOH Media revenue* rose by 8% YoY to THB 3,841mn largely from

encouraging growth in all business units

  • Digital Services Business rose sharply by 273% YoY to THB

1,282mn mainly due to the eight-month consolidation of Trans.Ad Group, higher revenue from Rabbit Group and the increase in average number of policies sold

  • Costs increased by 56% YoY to THB 1,234mn primarily due to the eight-

month consolidation of Trans.Ad Group

  • Operating EBITDA margin declined YoY to 45.5% (50.6% in FY 2017/18)

46% BTS – Related Media 21% Outdoor Media MEDIA (THB mn) FY 2018/19 FY 2017/18 %YoY 4Q 2018/19 4Q 2017/18 %YoY 3Q 2018/19 %QoQ Operating revenue 5,123 3,902 31% 1,382 1,107 25% 1,460 (5)% Costs of revenue 1,919 1,234 56% 558 321 74% 596 (6)% Gross profit 3,204 2,668 20% 824 786 5% 864 (5)% Operating EBITDA 2,332 1,976 18% 575 529 9% 632 (9)% Gross margin (%) 65.5% 68.4% 59.6% 71.0% 59.2% Operating EBITDA margin (%) 45.5% 50.6% 41.6% 47.8% 43.3%

FY 2018/19

OPERATING PERFORMANCE OPERATING REVENUE BREAKDOWN

9

Media

8% Office Buildings and Others 25% Digital

*OOH Media includes Transit, Outdoor and Office Building and Other Media

BTS Group Earnings Presentation Section 1: 4Q & FY 2018/19 Financial Performance

1,020 990 909 965 1,047 87 87 296 495 335

4Q 17/18 1Q 18/19 2Q 18/19 3Q 18/19 4Q 18/19

Digital Services Media OOH

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prepared by Investor Relations department BTS Group Holdings PCL

Residential 4%

HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS

  • Operating revenue was THB 360mn, mainly from commercial property

which decreased by 46% YoY, primarily attributable to the deconsolidation of the majority of BTS property business as a result of the EBT of UE to U City in 4Q 17/18

  • Share of net loss from investment in U City, our associate, of THB 80mn

(THB 505mn loss in FY 2017/18) as U City recognised lower loss on impairment of assets, improved operating performance of hotel business in Europe and the transfer progress of Sansiri-JVs

  • Operating costs dropped in tandem with the decline in operating

revenue, reducing by 37% YoY or THB 153mn to THB 261mn.

OPERATING PERFORMANCE

PROPERTY (THB mn) FY 2018/19 FY 2017/18 %YoY 4Q 2018/19 4Q 2017/18 %YoY 3Q 2018/19 %QoQ Operating Revenue 360 639 (44)% 107 160 (33)% 85 27% Costs of revenue 261 413 (37)% 41 105 (61)% 79 (48)% Gross profit 99 226 (56)% 66 54 22% 6 977% Operating EBITDA (22) (4) 460% 23 (5) (17)% (24) (4)% Gross margin (%) 27.6% 35.3% 61.9% 34.1% 7.3% Operating EBITDA margin (%) (6.1)% (0.6)% (21.0)% (3.3)% (27.8)%

OPERATING REVENUE BREAKDOWN

FY 2018/19

NOTE: Property operating performances exclude share of profit/(loss) from investment in BTS-SIRI JVs, U City and Bayswater.

10

Property

96% Commercial & Others BTS Group Earnings Presentation Section 1: 4Q & FY 2018/19 Financial Performance

160 80 87 85 107

4Q 17/18 1Q 18/19 2Q 18/19 3Q 18/19 4Q 18/19

Operating revenue

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prepared by Investor Relations department BTS Group Holdings PCL

46,364 52,150 36,971 50,370 22,923 41,794

31 Mar 18 31 Mar 19 Total shareholders' equity Total non-current liabilities Total current liabilities

144,315 106,258 84,591 123,186 21,667 21,129

31 Mar 18 31 Mar 19 Total non-current assets Total current assets

144,315 106,258 Cash 31 Mar 18: THB 9.5bn 31 Mar 19: THB 4.0bn Current Investments 31 Mar 18: THB 5.7bn 31 Mar 19: THB 7.7bn Long-Term Investments 31 Mar 18: THB 15.9bn 31 Mar 19: THB 14.6bn 80% 20% 15% 85% 29% 36% 35% 44% 21% 35%

FY 2018/19: 1.39x FY 2017/18: 1.02x

Gross Debt to Equity

FY 2018/19: 1.03x FY 2017/18: 0.37x

Adjusted Net Debt* to Equity

FY 2018/19: 7.43x FY 2017/18: 3.02x

Adjusted Net Debt* to Recurring EBITDA

FY 2018/19: 3.70x FY 2017/18: 3.31x

Interest Coverage

FY 2018/19: 0.51x FY 2017/18: 0.95x

Current Ratio

ASSETS BREAKDOWN LIABILITIES AND EQUITY BREAKDOWN KEY RATIOS

11

Financial Position

*Adjusted Net Debt = Interest Bearing Debt – Cash and Cash Equivalent and Liquid Investment

(THB mn) (THB mn) BTS Group Earnings Presentation Section 1: 4Q & FY 2018/19 Financial Performance

Gross Debt 31 Mar 18: THB 47.2bn 31 Mar 19: THB 72.5bn Adjusted Net Debt* 31 Mar 18: THB 17.1bn 31 Mar 19: THB 53.8bn ***** Issued Ordinary Shares 31 Mar 18: 11,940.4mn 31 Mar 19: 11,845.4mn

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SLIDE 12

prepared by Investor Relations department BTS Group Holdings PCL

Agenda

12 BTS Group Earnings Presentation

FY 2018/19 FINANCIAL PERFORMANCE SECTION 1 BUSINESS UPDATES SECTION 2 APPENDICES SECTION 3

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prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit Update

FY 2018/19 Core Network Ridership

13

Historical Ridership & % Growth (YoY) Historical Average Fare & % Growth (YoY)

BTS Group Earnings Presentation Section 2: Business Updates

*Excluding the impact of free-trip allowance to passengers from train services disruption

218.7 232.5 238.0 241.2 241.0 1.9% 6.3% 2.4% 1.3%

  • 0.1%
  • 150.0%
  • 140.0%
  • 130.0%
  • 120.0%
  • 110.0%
  • 100.0%
  • 90.0%
  • 80.0%
  • 70.0%
  • 60.0%
  • 50.0%
  • 40.0%
  • 30.0%
  • 20.0%
  • 10.0%
0.0% 10.0% 20.0% 30.0%
  • 50.0
100.0 150.0 200.0 250.0 300.0 350.0

2014/15 2015/16 2016/17 2017/18 2018/19 Total Ridership (mn trips) Ridership Growth (% YoY)

26.9 27.5 27.9 28.3 29.0* 1.6% 2.4% 1.3% 1.4% 2.4%

  • 150.0%
  • 140.0%
  • 130.0%
  • 120.0%
  • 110.0%
  • 100.0%
  • 90.0%
  • 80.0%
  • 70.0%
  • 60.0%
  • 50.0%
  • 40.0%
  • 30.0%
  • 20.0%
  • 10.0%
0.0% 10.0% 20.0% 30.0% 15.0 17.0 19.0 21.0 23.0 25.0 27.0 29.0 31.0 33.0 35.0

2014/15 2015/16 2016/17 2017/18 2018/19 Average fare price (THB) % Change YoY

  • Annual ridership slightly declined 0.1% YoY to

241.0mn trips

  • Annual average weekday ridership of 744,513 trips,

+0.1% YoY

  • Farebox revenue grew 2.3% YoY to THB 7.0bn
  • Annual fare increased 2.4% YoY to THB 29.0 per trip
  • Key factor: Promotional adjustment of stored-value

card in April 2018

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SLIDE 14

prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit Update

Progress of BTS Secured Lines

14 Included in Masterplan 17 Oct 18 Included in Masterplan 17 Oct 18 NTP issued 29 Jun 18 NTP issued 29 Jun 18

*Sources: Information was from MRTA and the Company’s report as of 30 April 2019, except for E&M for Northern Green Line ext. and Gold Line which were as of 30 May 2019

NORTHERN GREEN LINE EXT. (Mochit - Khukot) 18.2km/ 16 stations PINK LINE (Khae Rai – Min Buri) 34.5km/ 30 stations YELLOW LINE (Ladprao - Samrong) 30.4km/ 23 stations

FY 17/18 FY 18/19 FY 19/20 FY 20/21

Targeted 1st station: (Aug 2019) Targeted full Operation (2020)

Contract Signed

FY 21/22

Targeted

  • peration

(Oct 2021) Targeted

  • peration

(Oct 2021)

Contract Signed

Construction Period Construction Period Construction Period

100%

PINK LINE (EXTENSION) (Sirat – Muengthong Thani) 3.0km/ 2 stations YELLOW LINE (EXTENSION) (Ratchada - Ratchayothin) 2.6km/ 2 stations GOLD LINE PHASE 1 (Krung Thon Buri – Klong San) 1.7km/ 3 stations Targeted

  • peration

(by Sep 2020) O&M contract Signed (31 Jul 18) Construction Period

34% 20% 19% 33% 34% 20%

Civil E&M Progress (%)*

BTS Group Earnings Presentation Section 2: Business Updates

27%

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prepared by Investor Relations department BTS Group Holdings PCL

Media Update

VGI’s Acquisition of 18.6% in PlanB

15 BTS Group Earnings Presentation Section 2: Business Updates

The Business Collaboration of the Top Players in Out-of-home Media Segment

TRANSACTION SUMMARY

% of investment 18.6% of total shares 1. 9.5% from existing shareholders 2. 9.1% from newly issued ordinary shares Total shares acquisition Total of 721.8mn shares 1. 368.8mn shares from existing shareholders 2. 353.0mn shares from PLANB’s newly issued ordinary shares Acquisition price THB 6.40 per share Total investment THB 4,619.6mn Source of fund: Cash of THB 2,900mn and Loan THB 1,700mn

PRE SHAREHOLDING STRUCTURE

1Includes 1) PlanB Investment Holding Limited, 2) Outdoor Media

Investment Limited and 3) PT Elang Mahkota Teknologi TBK

  • Mr. Palin

Lajanagosin Group1

  • Dr. Pinijsorn

Luechaikajohn pan Group Public 49.6% 10.3% 40.1% POST SHAREHOLDING STRUCTURE Total shares of 3,882,568,101 shares

  • Mr. Palin

Lajanagosin Group

  • Dr. Pinijsorn

Luechaikajohn pan Group Public 43.6% 6.4% 31.4% 18.6% Total shares of 3,529,607,365 shares RATIONALE

  • Consolidate OOH media market with more than 12bn of media

inventory

  • Market “unique offline-to-online marketing solutions” from a

completed OOH journey to data optimisation with engaging entertainment content, driving down to conversion on payment and loyalty platforms

  • Centralise for cost savings including leverage proprietary system or
  • technology. Hence, more overall cost efficient.
  • Improve competitive positioning in THB 100bn media industry

MANAGEMENT AND CONTROL

  • No change in Management to avoid conflict of interest
  • 1 of 9 board representative from VGI
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SLIDE 16

prepared by Investor Relations department BTS Group Holdings PCL

Media Update

VGI’s Partnership with Anymind Group

16 BTS Group Earnings Presentation Section 2: Business Updates

Opportunity to Leverage ‘Ai Technology’ and Online Platform to Deliver Highly Targeted Offline and Online Advertising

TRANSACTION SUMMARY RATIONALE AND SYNERGIES OF THE JOINT VENTURE Step 1: Investment in AnyMind Group (“AnyMind”) % of investment Invested 2.26% in Series B-1 fund raising Total investment USD 5mn (or around THB 165mn) Step 2: Establish JVCo namely “VGI AnyMind Technology Co., Ltd.” % of holding 49% by VGI and 51% by AdAsia (Thailand) Registered capital: USD 0.03mn (or THB 1mn) Source of fund: Working Capital

  • Leveraging AnyMind platform product including online advertising and

influencer marketing into VGI O2O Solutions offering to provide better performance for our clients

  • Developing out-of-home programmatic media platform by using

Anymind’s technology and VGI’s digital out-of-home media assets to increase effectiveness of out-of-home media platforms in terms of reaching the targeted customers at the right time

  • Leveraging AnyMind Technology platform to better organise, analyse

and mobilise Rabbit data network in Offline to Online campaign SHAREHOLDING STRUCTURE 99.9 % 100% 49% 51% 2.26% AnyMind Group Founders Series A & B investors AdAsia Holdings (Singapore) AdAsia (Thailand) Others entities VGI AnyMind Technology CastingAsia (Singapore) TalentMind (Singapore)

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SLIDE 17

prepared by Investor Relations department BTS Group Holdings PCL

Media Update

VGI’s Partnership with I-Click Interactive Asia Group

17 BTS Group Earnings Presentation Section 2: Business Updates

Enhance Limitless Cross Border Marketing Opportunities Through a Suite Of Mobile and New Media Products TRANSACTION SUMMARY

Establish JVCo namely “V-Click Technology Company Limited” % of holding 49% by iClick, 30% by VGI and 21% by other investors Registered capital: THB 90mn Source of fund: Working Capital 30% V-Click Technology 49%

SHAREHOLDING STRUCTURE RATIONALE AND SYNERGIES OF THE JOINT VENTURE

  • Capturing advertising opportunity in China market
  • Appointing VGI as a sale agent of the JVCo to become the regional cross

border advertising solution distributor

  • Generating cross border marketing opportunities through mobile and

new media products, including:-

  • China Solutions: helping clients to gain insights of more than

780mn Chinese consumer profiles and providing the efficient way to acquire the right consumers, especially Chinese travelers.

  • O2O Solutions: launching 10,000 new mobile charging stations

with LED display, which will be placed throughout VGI’s network across Thailand such as BTS SkyTrain stations and Kerry Express’s distribution centers.

  • Mobile Application: developing AI-powered mobile application

that generates personalised digital content based on users’ interests and preferences, allowing brands to target consumers more effectively. POTENTIAL PARTNERS

Chinese search engine Game Online Operator Travel service provider Instant messaging service

Other Investors 21%

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SLIDE 18

prepared by Investor Relations department BTS Group Holdings PCL

Media Update

VGI’s Broaden User-Base from Rabbit and Kerry Network Expansion

18 BTS Group Earnings Presentation Section 2: Business Updates

RABBIT LINEPAY

Rabbit LinePay serves more than 5.5mn users, an increase of 83.0% YTD

Partnership with AIS

2.9 3.1 3.2 3.4 3.8 4.2 4.5 4.7 4.9 5.1 5.2 5.3 5.5

Single e-wallet with BTS and Rabbit Card & Rabbit LinePay

+83.0% YTD

RABBIT CARD

Rabbit Card circulation reached 11.0mn, increased by 23.2% YTD

9.0 9.1 9.2 9.3 9.4 9.6 9.8 9.9 10.1 10.3 10.6 10.8 11.0

+23.2% YTD

KERRY PARCEL SHOP KERRY TRUCK

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SLIDE 19

prepared by Investor Relations department BTS Group Holdings PCL

Property Update

Disposal of the Investment in Bayswater JV to CPN, Worth THB 7.7bn

19

Transaction Disposal of the investment in Bayswater Co., Ltd. Rationale To generate profit and to use proceeds for other businesses, projects or working capital of the Company Seller The Company Buyer Central Pattana Public Company Limited (CPN) Value of Disposed Investment THB 7,699mn Amount of Shares to be Disposed 50,000 ordinary shares (50% of total shares) at par value of THB 100 per share Asset Details Land 48 – 3 – 12.8 Rai (78,051.2sqm) Ownership: Freehold BTS Proximity 200m from Phahon Yothin 24 Station (N10 of Northern Green Line extension)

BTS Group Earnings Presentation Section 2: Business Updates

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SLIDE 20

prepared by Investor Relations department BTS Group Holdings PCL

Property Update

U’s Disposal of the Investment in Mochit Land to STEC, Worth THB 4.3bn

Transaction Ordinary Shares Disposal of Mo Chit Land Company Limited Seller U City PLC (BTS Associates) Buyer Sino-Thai Engineering and Construction PLC (STEC) Total Price THB 4,320mn Amount of Shares to be Disposed 29,550,000 ordinary shares (100% of total shares) at par value of THB 27.25 per share Asset Details Land and commercial buildings (Shop house) in amount of 63 plots 11-0-40.7 Rai (4,440.7 Sq.Wah) Payment Terms 1st installment: 1 November 2019 THB 1,300mn (transfer date) 2nd installment: 1 November 2020 THB 1,000mn 3rd installment: 1 November 2021 THB 1,000mn 4th installment: 1 November 2022 THB 1,020mn Shares Transfer Date 1 November 2019

20 BTS Group Earnings Presentation Section 2: Business Updates

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Property Update

U’s acquisition of hotels portfolio in Germany and Switzerland

21

17 Existing operating leased hotels and 2 new hotels opened in 2020 - 2022

Transaction Acquisition of 12 companies’ ordinary shares in Germany and Switzerland

  • Signing date: 30 April 2019
  • Completion date: 31 May 2019

Purchaser Vienna House Germany II GmbH

  • Subsidiary in Germany in which the Company

indirectly holds 100 percent of shares Seller Arcona Management GmbH Asset Details Operating lease rights of: 17 existing hotels (1,792 keys)

  • Currently operate under arcona, arcona Living and

Steigenberger brands

  • The number of rooms are ranging from

47 rooms to 180 rooms 2 new projects (251 keys)

  • Expected to be completed in 2020 and 2022

Asset Current Location

  • 16 destinations in Germany
  • 1 destination in Switzerland

Total Purchase Price EUR 24.7mn (approx. THB 890.5mn1)

1Reference is made to the foreign exchange rate of EUR and Baht currency according to the Notification

  • f the Bank of Thailand as of April 30, 2019, of which EUR 1 is equivalent to Baht 36.0522.

BTS Group Earnings Presentation Section 2: Business Updates A

Hotels under Vienna House portfolio Hotels under Arcona portfolio

Berlin Leipzig Munich Dresden Amberg Bad Oeynhausen Braunschweig Castrop-Rauxel Coburg Günzburg Landsberg Limberg Neckarsulm Trier Wuppertal Rostock Wismar

A A

Stralsund Greifswald

A A A A

Potsdam

A

Bremen

A

Osnabruck

A A

Wetzlar

A

Eisenach

A Bremen

Schaffhausen

A

Baden Baden

A Stuttgart A

Mannheim

A A A A

Total acquired keys 2,043

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BTS Group Update

First Thai Green Bond Offering to Institutional & HNW Investors

22 BTS Group Earnings Presentation Section 2: Business Updates

THB 13BN GREEN BOND Rationale: Issuance Date: For debt repayment of Eligible Green Projects (Pink & Yellow Line) 24 May 2019 Average Coupon Rate: 3.41% Complied with

By ICMA

 

Climate Bonds Standard version 2.1

Verified by

Provide Second Party Opinion (SPO) to verify BTSG Greenbond Framework Aligned with GBP Certified by Climate Bonds Initiative (CBI)

Certified by THB 13.0bn Issue Size: THB 41.7bn Bidding Demand: A/ Stable rated by TRIS Credit Rating:

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SLIDE 23

prepared by Investor Relations department BTS Group Holdings PCL

BTS Group Update

BTS-W4 and BTS-W5 Term Sheets

BTS Group Earnings Presentation Section 2: Business Updates Ticker BTS-W4 Term 1 year from the issuance date Issuance date 30 November 2018 Expiry date 29 November 2019 Warrants price nil

  • No. of warrants

1,315,710,907 units Allocation To existing shareholders at the ratio of 9 existing BTS shares : 1 bts-W4 Exercise ratio1 1 BTS-W4 to 1.1 new common share of BTS Exercise price THB 10.50 per share Expected maximum proceeds THB 13.8bn Exercise period Quarterly Progress 48.8mn units exercised, generating proceeds

  • f THB 0.5bn, equivalent to 3.7% of maximum

proceeds

BTS-W4 TERMS AND CONDITIONS

23 Ticker BTS-W5 Term 1 year from the issuance date Warrants price nil

  • No. of warrants

Up to 1,319.61mn units Allocation To existing shareholders at the ratio of 10 existing BTS shares : 1 BTS-W5 Exercise ratio 1 BTS-W5 to 1 new common share of BTS Exercise price THB 14 per share Expected maximum proceeds THB 18.5bn Exercise period Quarterly

1Subject to shareholders’ approval, issuance of new warrants (BTS-W5) up to

1,319.6mn units, calculated based on the assumption that BTS-W4 Warrants (including the case of rights adjustment of BTS-W4 Warrants) and BTS-WC Warrants which are entitled to exercise are fully exercised. The number of shares with the right to receive BTS-W5 Warrants will be equivalent to 13,195.7mn shares.

BTS-W5 TERMS AND CONDITIONS

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SLIDE 24

prepared by Investor Relations department BTS Group Holdings PCL

THB 1.5 - 1.9bn

Mass-transit related interest income

THB 27 - 33bn THB 0.7bn THB 0.2bn

(Excludes: Real estate development cost)

THB 23 - 27bn

Pink and Yellow Lines Construction revenue

THB 4 - 6bn

Revenue from E&M provision and train procurement for Green Line extensions

4 - 5%

Core Network ridership growth

THB 3.4bn

Train O&M revenue

THB 6.0 - 6.2bn

VGI Revenue

40 - 45%

VGI EBITDA margin

20 - 25%

VGI NPAT margin

FY 2019/20 BTS Group Targets and CAPEX

≥ 20%

U City EBITDA margin

THB 350mn

BTS Group Property Revenue

THB 7.2 - 7.5bn

U City Revenue

BTS GROUP TARGETS CAPEX: THB 28-34BN MASS TRANSIT PROPERTY MEDIA

BTS Group Earnings Presentation Section 2: Business Updates 24

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Agenda

BTS Group Earnings Presentation 25

FY 2018/19 FINANCIAL PERFORMANCE SECTION 1 BUSINESS UPDATES SECTION 2 APPENDICES SECTION 3

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prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit Update

Progress of New Trains Delivery

26

 14 trains arrived  Another 8 trains will be completely delivered by 2019  First batch arrived in 1H 2019  The remaining will be completely delivered by 2020

BTS Group Earnings Presentation Appendices

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SLIDE 27

prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit Update

Progress of BTS Targeted Lines

Sources: MRTA, the Company

FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 WESTERN GREEN LINE EXT.

(Bang Wa – Taling Chan) 7.0km/ 6 stations Targeted Full operation Targeted Full operation Expected open bid/ award Expected open bid/ award

LRT

(Bangna - Suvarnabhumi) 18.3km/ 14 stations

GREY LINE PHASE 1

(Watcharaphon - Thonglo) 16.3km/ 15 stations

ORANGE LINE

(Min Buri – Taling Chan) 39.6km/ 29 stations Expected open bid/ award Expected open bid/ award Targeted Full operation Targeted Full operation

FY 22/23

Construction Period Construction Period Construction Period Construction Period (Civil works of Eastern Orange) BTS Group Earnings Presentation Appendices 27

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prepared by Investor Relations department BTS Group Holdings PCL

Mass Transit Update

U-Tapao International Airport - Project at a Glance

28 BTS Group Earnings Presentation Appendices

3 Consortiums submitted bid of U-Tapao

Location Plub Pla ,Ban Chang District, Rayong Province Land Area

  • Approx. 1,600 Rai

Contract Type PPP Net Cost Contract Term 50 Years Authority Royal Thai Navy Total Project Cost THB 91bn per market sounding Sources of Fund Debt 70 : Equity 30

Project Details

45% 35% 20%

3 Years 47 Years Design & Build Operation and Maintenance

BBS

JV 2 3 4 1 5 6 7

PPP Project Scope

  • 1. Passenger Terminal Building 3
  • 2. Commercial Gateway
  • 3. Cargo Village as a Free Zone
  • 4. Cargo Complex
  • 5. Maintenance, Repair and Overhaul

Facilities

  • 6. Aviation Training Center
  • 7. Passenger Terminal Building 1 and 2

Timeline

Source: Company Data and Market Sounding

21 March 2019 Bidding Submission 2019 Expected Best Bid Announcement October 2018 RFP selling period

Package Inclusion: Package Exclusion:

Grande Asset: 80% Thai Air Asia: 10% Christiani & Neilson: 10%

Grand Consortium

Thana Holding Ch Karnchang Italian Thai Development

  • B. Grimm Joint

Venture Holding

(42 companies bought U-Tapao RFP) CP Consortium

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SLIDE 29

prepared by Investor Relations department BTS Group Holdings PCL

Western Orange Eastern Orange Eastern Orange Western Orange EXPECTED TIMELINE

Mass Transit Update

Orange Line – Project at a Glance

29 2023 Targeted Commercial Operation Date MAY 2017 Civil work construction of Eastern Orange began 2019 Expect request for proposal (RFP) for Civil work construction of Western Orange & E&M, available for sale

Underground Stations Elevated Stations

ORANGE LINE (39.6KM, 29 STATIONS) CAPEX Civil ~THB 90bn* E&M ~THB 30bn Route Length

  • No. of

Station Taling Chan – Thailand Cultural Center 17km 12 (underground) Route Length

  • No. of

Station Thailand Cultural Center - Min Buri 22.6km 17 (10 aboveground and 7 underground)

* Western Orange civil works CAPEX

BTS Group Earnings Presentation Appendices

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30

Property Update

14 Projects SIRI-JV Condomimium Launched with Upcoming 3 Projects

PARTNERSHIP ROADMAP 2015 2016

50:50 JV to develop a targeted THB 100bn worth of condominiums along current and future mass transit lines through the JV with Sansiri PCL with an expected NPAT margin 12%

2018

The LINE Jatujak – Mo Chit Project value: THB 5,815mn

  • No. of units: 841

The LINE Sukhumvit 71 Project value: THB 1,967mn

  • No. of units: 291

The LINE Ratchathewi Project value: THB 2,851mn

  • No. of units: 231

The LINE Asoke-Ratchada Project value: THB 3,022mn

  • No. of units: 473

The BASE Garden Rama 9 Project value: THB 2,336mn

  • No. of units: 640

The LINE Phahon-Pradipat Project value: THB 5,890mn

  • No. of units: 981

2017

The BASE Phetkasem 29 Project value: THB 2,012mn

  • No. of units: 640

The MONUMENT Thong Lo Project value: THB 6,258mn

  • No. of units: 127

The LINE Sathorn Project value: THB 3,910mn

  • No. of units: 327

The LINE Sukhumvit 101 Project value: THB 4,653mn

  • No. of units: 778

KHUN BY YOO Project value: THB 4,069mn

  • No. of units: 148

The LINE Wongsawang Project value: THB 4,776mn

  • No. of units: 1,288

The LINE Wongsawang The LINE Sukhumvit 101 The LINE Jatujak-Mo Chit

Fully transferred

The BASE Saphanmai Project value: THB 2,921mn

  • No. of units: 820

The LINE Phahonyothin Park Project value: THB 4,961mn

  • No. of units: 880

2019

The LINE Sathorn

The BASE Ratchada-Thapra Project value: THB 3,050mn

  • No. of units: 1,037

VIA Sukhumvit 34 Project value: THB 1,345mn

  • No. of units: 82

Yak Phang Muang Project value: THB 1,842mn

  • No. of units: 315

Ready to move in New project To be transferred

BTS Group Earnings Presentation Appendices

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SLIDE 31

prepared by Investor Relations department BTS Group Holdings PCL

Property Update

U City will develop Roi Chak Sam Project, to be an Upscale Hotel

Project value Approximately THB 4.6bn Land Area 5-0-60 Rai (8,240 sqm) Location On the Chao Praya Riverside, Soi Charoenkrung 36, Bangrak, Bangkok Concept Focus on the harmony between the ancient custom house and new building Management Company Inhouse brands and management platform Status Signed the amendments to the original agreements on 24 May 2019

Project Details

A luxurious 5-star hotel project in a rare, historic, colonial- era heritage building located along magnificent Chao Praya Riverside, on Charoen Krung road.

Total Area NFA: 13,600sqm World-Class Dining Experience 5-Star Luxurious Hotel 31 BTS Group Earnings Presentation Appendices