BTS Group Holdings PCL 3Q 15/16 earnings presentation 16 February 2016 3Q 15/16 earnings presentation 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 or 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 or otherwise revise any such information to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof. None of the Company or any of its subsidiaries or any of their respective directors, officers, employees or agents shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation and any and all such liability is expressly disclaimed. The information contained herein must be kept strictly confidential and may not be reproduced or redistributed in any format without the express written approval of the Company. Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to the Company’s corporate plans, strategies and beliefs and other statement that are not historical facts. These statement can be identified by the use of 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 on as promise or representation of the Company as to the future. 3Q 15/16 earnings presentation prepared by Investor Relations department 2 BTS Group Holdings PCL
Agenda Section 1 BTSG 3Q 15/16 FINANCIAL PERFORMANCE Section 2 BUSINESS UPDATES Section 3 BTSGIF 3Q 15/16 FINANCIAL PERFORMANCE (separate presentation) APPENDICES 3Q 15/16 earnings presentation prepared by Investor Relations department 3 BTS Group Holdings PCL
3Q 15/16 Financial Highlights PROFITABILITY IMPROVED FROM TAX IMPACT NEW CORE RIDERSHIP RECORD: 59.1MN TRIPS (increased +4.7% YoY) • Net recurring profit before MI improved 13.6% YoY to THB 757.4mn from the impact of negative income tax YTD MASS TRANSIT PERFORMANCE AHEAD OF • However, reported net profit (before MI) and margin declined FY 15/16 TARGETS (as of 31 Jan 2016) : YoY: ACTUAL TARGET Net profit after MI: -38.1% YoY to THB 607.4mn Ridership: +6.6% YoY 4 - 6% Net profit margin after MI: 37.8% (vs 42.0% in 3Q 14/15) Average fare: +2.2% YoY 2% BTS DIVIDEND SET50 DIVIDEND YIELD (LTM)** BALANCE SHEET STRENGTH YIELD (LTM)*** >> 7.49% 3.91% • THB 14.66bn excess cash and liquid investments* BTS DAILY TRADED VALUE (LTM) (as of 12 Feb 2016) • Leverage: Net debt / equity at 0.06x THB 281.3mn (USD 8.2mn) * Excess cash and liquid investments exclude sinking fund and include cash balance of THB 1.83bn, current investments of THB 2.88bn, long term ** Dividend yield based on share price of THB 8.55 as of 8 Jan 2016 (one day investments of THB 8.72bn and restricted deposits of THB 1.24bn before BOD date) *** Sum of the gross DPS that have gone ex-dividend over the past 12 months, divided by stock price as of 12 Feb 2016 3Q 15/16 earnings presentation prepared by Investor Relations department 4 Section 1: BTSG 3Q 15/16 Financial Performance BTS Group Holdings PCL
3Q 15/16 Overview P&L SNAPSHOT Income Statement (THB mn) 3Q 15/16 3Q 14/15 % YoY 2Q 15/16 % QoQ 9M 15/16 9M 14/15 % YoY Operating Revenues 1 1,477 1,839 (19.7)% 1,671 (11.6)% 4,686 5,455 (14.1)% Gross operating profits 855 1,000 (14.5)% 969 (11.7)% 2,711 2,990 (9.3)% Operating EBITDA 2 626 717 (12.7)% 707 (11.5)% 1,964 2,145 (8.5)% Recurring net profit – before MI 757 667 13.6% 421 79.9% 1,702 2,197 (22.6)% Accounting EBITDA 3 807 1,549 (47.9)% 834 (3.3)% 5,954 3,929 51.5% Net income (loss) 4 607 981 (38.1)% 474 28.2% 4,098 2,265 80.9% Gross operating profit margin (%) 57.9% 54.4% 58.0% 57.9% 54.8% EBITDA margin (%) 46.5% 57.7% 42.3% 66.8% 53.4% Operating EBITDA margin (%) 42.4% 39.0% 42.3% 41.9% 39.3% Recurring net profit margin (%) 44.1% 29.8% 25.3% 33.3% 32.2% 1 operating revenue of 4 BUs & share of net profit from BTSGIF 2 excluding interest income 3 including profit from discontinued operation 4 to equity holders of the parent 3Q 15/16 OPERATING REVENUE BREAKDOWN OPERATING REVENUE COMPARISON (YoY) ( THB mn) Mass Transit (268) 34 1,839 Media (180) 42% 1,477 35% 51 6% -34% -53% 37% Services 12% Property 3Q 14/15 Mass transit Media Property Services 3Q 15/16 11% 3Q 15/16 earnings presentation prepared by Investor Relations department 5 Section 1: BTSG 3Q 15/16 Financial Performance BTS Group Holdings PCL
9 Months Cash Flow Snapshot ( THB mn) Loans to related parties Long-term investments 10,112 (293)* Cash paid for purchase of land (3,202) Dividend payment 4 th tranche of BTSC debenture Increase in VGI stake (4,858) 68** 1,827*** Beginning cash CFO CFI CFF OTHERS Ending cash (31/3/15) (31/12/15) * after tax (THB 1,997.4mn) and interest expense (THB 128.1mn) ** cash and cash equivalents of BTSA, KKP and Nuvo Line (presented as assets held for sale at beginning and ending of the year) *** excluding BTSC sinking fund and THB 12.8bn of liquid investments 3Q 15/16 earnings presentation prepared by Investor Relations department 6 Section 1: BTSG 3Q 15/16 Financial Performance BTS Group Holdings PCL
Mass Transit OPERATING PERFORMANCE OPERATING REVENUE BREAKDOWN Mass Transit (THB mn) 3Q 15/16 3Q 14/15 % YoY 2Q 15/16 % QoQ 9M 15/16 9M 14/15 % YoY Share in BTSGIF O&M Revenue 614 580 6% 617 (1)% 1,834 1,734 6% 36% O&M revenue 395 386 2% 395 0% 1,184 1,157 2% 64% Share in BTSGIF 219 194 13% 223 (2)% 650 577 13% Costs of revenue 236 231 2% 207 14% 652 645 1% 2Q 14/15 3Q 15/16 Gross profit 378 348 8% 410 (8)% 1,181 1,089 9% Operating EBITDA 383 352 9% 415 (8)% 1,196 1,099 9% Gross margin (%) 61.5% 60.1% 66.4% 64.4% 62.8% Operating EBITDA margin (%) 62.4% 60.7% 67.2% 65.2% 63.4% KEY FACTORS HISTORICAL OPERATING REVENUE (THB mn) O&M revenue rose by 2.2% YoY to THB 394.9mn mainly from the O&M (THB mn) Farebox (THB mn) Share of NP in BTSGIF (THB mn) contractually agreed increase in operating fee of the Sukhumvit extension and Silom extension 1,263 Share of net profit in BTSGIF increased 13.2% YoY to THB 219.1mn 1,259 from the increase in core network performance Costs rose 2.1% YoY to THB 236.3mn largely due to higher repair and 124 223 219 166 217 194 147 208 maintenance expenses and wages 157 174 157 Operating EBITDA margin improved YoY to 62.4% (60.7% in 3Q 208 14/15) as operating cost increased at a lower rate than the increase 392 392 394 395 395 - 379 379 386 322 308 283 288 271 in operating revenue - 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 12/13 12/13 13/14 13/14 13/14 13/14 14/15 14/15 14/15 14/15 15/16 15/16 15/16 3Q 15/16 earnings presentation prepared by Investor Relations department 7 Section 1: BTSG 3Q 15/16 Financial Performance BTS Group Holdings PCL
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