3q 13/14 earnings presentation - listed companybts.listedcompany.com/misc/presn/20140213-bts... ·...

prepared by Investor Relations department BTS Group Holdings PCL

BTS Group Holdings PCL

3Q 13/14 earnings presentation 13 February 2014

3Q 13/14 earnings presentation


Disclaimer

Investment involves risk. Prospective should understand the characteristics of Securities and study information about BTS Group Holdings Public Company Limited (the “Company”) before making a decision to invest in Securities. This presentation is for information purposes only and is intended only for the initial direct attendee of the presentation. It may not be reproduced or redistributed to any other person. It shall not and does not constitute either an offer to purchase or buy or a solicitation to purchase or buy or an offer to sell or exchange or a solicitation to sell or exchange any securities of BTS Group Holding PCL (the "Company") or any of its subsidiaries in the United States of America or in any other jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its existence, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. This presentation is not to be relied upon in any manner as legal, tax or any other advice and shall not be used in substitution for the exercise of independent judgment and each person made aware of the information set-forth hereof shall be responsible for conducting its own investigation and analysis of the information contained herein. Except where otherwise indicated, the information provided in this presentation is based on matters as they exist as of the date stated or, if no date is stated, as of the date of preparation and not as of any future date, and the information and opinions contained herein are subject to change without notice. None of the Company nor any of its subsidiaries accepts any obligation to update or otherwise revise any such information to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof. None of the Company or any of its subsidiaries or any of their respective directors, officers, employees or agents shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation and any and all such liability is expressly disclaimed. The information contained herein must be kept strictly confidential and may not be reproduced or redistributed in any format without the express written approval of the Company. Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to the Company’s corporate plans, strategies and beliefs and other statement that are not historical facts. These statement can be identified by the use of 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.

2 3Q 13/14 earnings presentation


Agenda

Section

1 BTSG 3Q 13/14 FINANCIAL PERFORMANCE

Section

2 Section

3

BUSINESS UPDATES

BTSGIF 3Q 13/14 FINANCIAL PERFORMANCE (separate presentation)

APPENDICES



BTS DIVIDEND YIELD (LTM)* 7.45%

Financial Highlights

IMPROVED PROFITABILITY YoY

WEAKENED PROFITABILITY QoQ

BALANCE SHEET STRENGTH

4 3Q 13/14 earnings presentation Section 1: BTSG 3Q 13/14 Financial Performance

• Recurring pre-tax profit up 60% YoY and 2.4% QoQ to THB 1.0bn

• Recurring net profit grew 81% YoY to THB 563.1mn • Recurring net profit improvement: recurring net profit

margin rose to 22.5% (11.2% in 3Q 12/13)

• One time tax charge • Media business slowdown

• THB 42.7bn excess cash / liquid investments Cash Balance of THB 11.0bn Current Investments of THB 25.4bn Long term Investments of THB 6.3bn

• Leverage reduced: Net debt / equity reduced to (0.07)x

STRONG RIDERSHIP GROWTH 8.9% YTD (31 Jan) - within FY TARGET 7-10%

BTS DAILY TRADED VALUE (LTM) THB 609.2mn ($19.0mn)

3Q 13/14 RIDERSHIP RECORD 53.9mn TRIPS, increased 7.1% YoY

BTS GROUP VISION 2018 To be Thailand’s leading Mass Transit Developer & Operator

SET50 DIVIDEND YIELD (LTM) 3.51% >>

* Sum of the gross DPS that have gone ex-dividend over the past 12 months, divided by stock price as of 11 Feb 2014


OPERATING REVENUE COMPARISON (YoY)

3Q 13/14 Overview

5

Income Statement (THB mn) 3Q 13/14 3Q 12/13 % YoY 2Q 13/14 % QoQ 9M 13/14 9M 12/13 % YoY

Operating Revenues1 2,116 2,725 (22.3%) 2,333 (9.3%) 6,991 7,352 (4.9%)

Gross operating profits 1,179 1,264 (6.7%) 1,241 (5.0%) 3,719 3,607 3.1%

Operating EBITDA2 875 1,260 (30.6%) 920 (4.9%) 2,771 3,678 (24.7%)

Recurring net profit – before MI 563 312 80.4% 763 (26.2%) 2,419 826 192.9%

Accounting EBITDA3 1,301 1,960 (33.6%) 1,609 (19.1%) 17,167 4,747 261.6%

Net income (loss)4 449 896 (49.9%) 959 (53.2%) 12,232 1,653 640.0%

Gross operating profit margin (%) 55.7% 46.4% 53.2% 53.2% 49.1%

EBITDA margin (%) 54.0% 56.1% 55.6% 79.6% 55.9%

Recurring net profit margin (%) 22.5% 11.2% 28.3% 34.6% 11.2%

Operating EBITDA margin (%) 41.3% 46.2% 39.4% 39.6% 50.0%

P&L SNAPSHOT

25%

Mass Transit

38%

Media

35%

Property

2%

Services

3Q 13/14 OPERATING REVENUE BREAKDOWN

1 operating revenue of 4 BUs & share of net profit from BTSGIF 2 excluding interest income 3 including profit from discontinued operation 4 to equity holders of the parent

3Q 13/14 earnings presentation Section 1: BTSG 3Q 13/14 Financial Performance

2,725

2,115

(1,006)

49 319 28

3Q 12/13 Mass transit Media Property Services 3Q 13/14

(66%) 7% 74%

(THB mn)

165%


9 Months Cash Flow Snapshot

6

3,513

10,998 *

2,901

13,313 (8,731)

Beginning cash(31/3/13)

CFO CFI CFF Ending cash(30/9/13)

(THB mn)

Proceeds from sale of net fare-box revenue to BTSGIF and treasury management

Debt repayment and dividend payment

Improved profit, Abstracts PHY transferred, higher

interest income, and reduced interest expense

(31/12/13)

* excluding THB 31.7bn liquid investments



HISTORICAL AVG FARE AND RIDERSHIP

HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS

OPERATING PERFORMANCE

Mass Transit (as if no BTSGIF)*

Quarterly Ridership increased 7.1% YoY to 53.9mn trips Average Fare increased 7.1% YoY to THB 26.8 per trip Key growth factor: i) organic growth ii) the commencement of 4

stations of the Silom line (Bang Wa) extension and iii) new carriages into service (all 4-car trains across the network)

O&M revenue rose by 35.7% YoY to THB 367mn mainly from additional service income from Silom line extension (full quarter effect from Pho Nimit (S9) to Talat Phlu (S10) and partial income from Wutthakat (S11) and Bang Wa (S12)

Costs & SGA increased 8.2% YoY or THB 81mn due to higher operating costs and depreciation tied to increased ridership

Operating EBITDA margin rose to 65% (59% in 3Q 12/13) as costs and SG&A increased less than the revenue growth

Mass transit (THB mn) 3Q 13/14 3Q 12/13 YoY 2Q 13/14 QoQ

Revenue 1,811 1,530 18% 1,761 3%

Fare-box revenue 1,443 1,259 15% 1,417 2%

Other revenue 367 271 36% 344 7%

Costs of revenue 949 868 8% 887 7%

Gross profit 862 661 30% 874 (1%)

Operating EBITDA 1,183 907 30% 1,221 (3%)

Gross margin (%) 47.6% 43.2% 49.6%

Operating EBITDA margin (%) 65.4% 59.3% 69.3%

* Includes 100% of fare-box revenue and O&M


48

.0

46

.4

49

.4

50

.3

51

.1

50

.3

53

.5

53

.9

24.5 24.5 25.1 25.0 24.7

25.3 26.5 26.8

4Q11/12

1Q12/13

2Q12/13

3Q12/13

4Q12/13

1Q13/14

2Q13/14

3Q13/14

Ridership (mn trips) Average fare (THB/trip)

77

80

79

79

82

23

8

27

0

29

1

25

8

27

0

27

1

32

2

33

9

34

4

36

7

71

7

91

0

96

0

95

9

95

6

1,0

88

1,0

76

1,1

77

1,1

35

1,2

38

1,2

59

1,2

63

1,2

73

1,4

17

1,4

43

1Q10/11

2Q10/11

3Q10/11

4Q10/11

1Q11/12

2Q11/12

3Q11/12

4Q11/12

1Q12/13

2Q12/13

3Q12/13

4Q12/13

1Q13/14

2Q13/14

3Q13/14

O&M (THB mn) Farebox (THB mn)

IR Quarterly Presentation 4Q 1213_Draft1.xlsx


54%

BTS - Related

40%

Modern Trade 6%

Office Buildings & Others

Media

OPERATING REVENUE BREAKDOWN OPERATING PERFORMANCE

HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS BTS-related Media

Revenue increased 18% YoY (to THB 435mn) from i) increase in the On-Station revenue (Platform Truss LEDs) ii) the increase in rent for long-term contracts of merchandising space and iii) the increase in occupancy of small rental shops on the stations.

Modern Trade Media Revenue decreased 4% YoY and 13% QoQ (to THB 319mn) from the impact from economic slowdown and political unrest, which consequently led to delayed advertising spending.

Office Building and Other Media Revenue decreased 6% YoY (to THB 44mn), driven by economic slowdown and political unrest, which consequently led to delayed advertising spending.

Media (THB mn) 3Q 13/14 3Q 12/13 YoY 2Q 13/14 QoQ

Revenue 798 749 7% 847 (6%)

Costs of revenue 287 297 (3%) 315 (9%)

Gross Profit 512 452 13% 532 (4%)

Operating EBITDA 435 381 14% 452 (4%)

Gross margin (%) 64.1% 60.3% 62.8%



30

0

34

5

37

0

35

5

46

7

52

3

50

3

46

5

63

7

72

5

74

9 68

3

84

3

84

7

79

8

1Q10/11

2Q10/11

3Q10/11

4Q10/11

1Q11/12

2Q11/12

3Q11/12

4Q11/12

1Q12/13

2Q12/13

3Q12/13

4Q12/13

1Q13/14

2Q13/14

3Q13/14


90

13

4

18

5

15

4

15

4

15

2

11

1

21

0

15

5 19

4

43

0

74

4

98

7

91

7 7

49

1,6

43

1,8

49

55

4

1Q10/11

2Q10/11

3Q10/11

4Q10/11

1Q11/12

2Q11/12

3Q11/12

4Q11/12

1Q12/13

2Q12/13

3Q12/13

4Q12/13

1Q13/14

2Q13/14

3Q13/14

Residential Projects

59% Commercial Projects

34%

Thanacity Golf 7%

Property

REVENUE BREAKDOWN OPERATING PERFORMANCE

HISTORICAL REVENUE (THB mn) KEY FACTORS

THB 1,643

Proceeds from sale of Kamala

THB 1,849

Proceeds from sale of Nana

Property (THB mn) 3Q 13/14 3Q 12/13 YoY 2Q 13/14 QoQ

Operating revenue 749 430 74% 917 (18%)

Costs of revenue 425 268 59% 543 (22%)

Gross Profit 324 161 101% 374 N/A

Operating EBITDA 159 51 N/A 198 N/A

Gross margin (%) 43.3% 37.5% 40.8%


Operating Revenue Revenue increased by THB 319mn YoY to THB 749mn from i) 131 transferred units of Abstracts PHY ii) revenue from Eastin Grand Hotel Sathorn Operating costs increased by THB 156mn YoY to THB 425mn from

i) transferred units of Abstracts Phahonyothin Park ii) costs related to Eastin Grand Hotel SG&A rose by THB 52mn to THB 204mn mainly from i) expenses related to Abstracts PHY units transferred ii) operating expenses related to Chef Man Restaurants Operating EBITDA margin improved to 21.2% (11.9% in 3Q 12/13) and net operating profit reached THB 105mn

9

THB 554

Proceeds from sale of non-core land



25%

CARROT

75%

RABBIT

0%

HHT

Services

Revenue Revenue increased by THB 28mn YoY to THB 45mn from the growth in royalty fee from the co-branded Rabbit card between the Company and business partner

Costs & SGA Costs & SGA increases to THB 58mn (cost THB 29mn and SG&A THB 29mn) largely due to depreciation and staff cost

Reclassify Thana City Golf course from services to property in 4Q 11/12

OPERATING REVENUE BREAKDOWN OPERATING PERFORMANCE

HISTORICAL OPERATING REVENUE (THB mn) KEY FACTORS

Service (THB mn) 3Q 13/14 3Q 12/13 YoY 2Q 13/14 QoQ

Revenue 45 17 165% 50 (10%)

Costs of revenue 29 27 7% 31 (6%)

Gross Profit 16 (10) N/A 19 N/A

Operating EBITDA 2 (23) N/A 11 N/A

Gross margin (%) 35.2% 37.6%

Operating EBITDA margin (%) 3.4% 22.0%


9

25

31

35

33

33

36

1

6 8

17

12

41

50

45

1Q10/11

2Q10/11

3Q10/11

4Q10/11

1Q11/12

2Q11/12

3Q11/12

4Q11/12

1Q12/13

2Q12/13

3Q12/13

4Q12/13

1Q13/14

2Q13/14

3Q13/14


7,767.3 8,332.9

9,021.9 8,543.0

50,501.7 63,634.6

31-Mar-13 31-Dec-13

15,072.6

40,428.6

52,218.4

40,081.9

31-Mar-13 31-Dec-13

3Q 13/14 Balance Sheet

LIABILITIES AND EQUITY BREAKDOWN (THB MN) ASSET BREAKDOWN (THB MN)

KEY RATIOS

Non-current assets

Current assets

22%

78%

50%

50%

67,291 80,511

Non-current liabilities

Current liabilities

Equity

10%

79%

11%

67,291 80,511

76%

13%

11%

3Q 13/14: (0.07)x 3Q 12/13: 0.21x

Net Debt to Equity

11

Net Debt to Operating EBITDA

3Q 13/14: (1.04)x 3Q 12/13: 2.15x

3Q 13/14: 6.54x 3Q 12/13: 5.44x

Interest Coverage

3Q 13/14: 4.69x 3Q 12/13: 1.36x

Current Ratio



Agenda

Section


Section

2 Section

3

BUSINESS UPDATES


APPENDICES



GREEN LINE EXTENSIONS UPDATE

13 3Q 13/14 earnings presentation Section 2: Business Updates

1

3

2

Mass Transit Update

1 WONGWIAN YAI-BANG WA: • 4 stations, 5.3km • Extension fully operational on 5 Dec 2013 • BMA started collecting flat fare of THB 10.00 on

6 January 2014

BEARING-SAMUT PRAKARN: • 9 stations, 12.8km • Civil works progress: >20% (as of 31 Dec 2013) • Expected civil works completion: Nov 2015 • Bidding for operating contract expected latest in

2015

2

MO CHIT-SAPHAN MAI-KU KHOT: • 16 stations, 18.4km • Cabinet approved civil works construction on

15 Oct 2013 • Bidding for civil works on 11 Apr 2014 • Expected to start construction in Nov 2014 • Bidding for operating contract expected in late

2015

3


Grey Line

14

JAN 2014 Project already approved by Bangkok governor

Hire consultant for EIA & feasibility study to determine Phase I route

MAR 2014

Feasibility report approval process by Office of National Environment Board

(ส ำนกังำนคณะกรรมกำรสิ่งแวดล้อมแหง่ชำติ)

JAN 2015

OPEN FOR BIDDING (both Civil and E&M) JULY 2015

Construction starts OCT 2015

Operation year 2018

10 months

6 months

3 months

2 years (at least) construction time

PROJECT DETAILS ESTIMATED TIMELINE

Total route length of 26km

Monorail

Project under BMA authority

WATCHARAPHON – RAMA 9 BRIDGE

Source: Traffic and Transportation Department, BMA

WATCHARAPHON

RAMA 9 BRIDGE

3Q 13/14 earnings presentation Section 2: Business Updates


New Light Green Extension

15

JAN 2014 (Latest 2015)

Awaiting project approval by Bangkok governor

Hire consultant for EIA & feasibility study MID-2014 (Mid-2015)

Feasibility report approval process by Office of National Environment Board

(ส ำนกังำนคณะกรรมกำรสิ่งแวดล้อมแหง่ชำต)ิ

END OF 2014 (End of 2015)

Route approval process by Cabinet MID-2015 (Mid-2016)

OPEN FOR BIDDING (both Civil and E&M) EARLY 2016 (Early 2017)

Operation year 2018 (2019)

8 months

6 months

6 months

2 years construction time

PROJECT DETAILS ESTIMATED TIMELINE

Total route length of 7km (6 stations)

Project under BMA authority

BANG WA – TALING CHAN

Source: Traffic and Transportation Department, BMA

TALING CHAN

BANG WA



Protestors marched to Government House

House of Representatives dissolution

692.5 685.4

740.8 749.6

877.4

1 NOV 2013 4 NOV 2013 9 DEC 2013 22 DEC 2013 13 JAN 2014

House of Representatives passed amnesty bill

Multiple protests around Bangkok

Anti-government mass rally around Bangkok

Bangkok Shutdown (6 of 7 protest sites situated near BTS SkyTrain routes)

General election date

2 FEB 2014

Highest record of ridership on Sunday

Avg. Weekday Ridership (FY 2012/13)

603.7

Highest record of weekday ridership

KEY EVENTS & RIDERSHIP IMPACT

Political Situation

+14.7% +13.5%

+22.7% +24.2%

+45.3%


16

RIDERSHIP IN CORE NETWORK (‘000 PASSENGERS/DAY)

% RIDERSHIP CHANGE FROM FY12/13 AVG. WEEKDAY RIDERSHIP


Beijing Infrastructure Investment Co., Ltd. (BII) invited 3 public investors to submit tender proposal

Three parties:

• Beijing Mass Transit Railway Operation Corporation Limited (current operator of 10 main lines & 4 sub lines)

• Beijing MTR Corporation Limited (current operator of 2 lines)

• BTS-CITIC Consortium

Beijing Subway Line 16

17

PROJECT DETAILS INVESTMENT DETAILS

Total route length of 50km (29 stations)

Expected operation date: 2018

Consortium partner: CITIC Construction Co., Ltd. (100%

subsidiary of CITIC Group Corporation)

• Previous experience in construction of mass transit

projects: Iran Teheran Metro and Algeria East-to-

West Expressway

Expected bidding result announcement: May 2014

BEIJING SUBWAY LINE 16


TENDER INFORMATION

TENDER BACKGROUND

Private sector to invest in E&M systems

• Rolling stock • Signaling systems • Communication systems • Power supply systems • Automatic Fare Collection systems • Depot and Workshop equipment • Platform Screen Doors • Others

30-year O&M concession

E&M development cost: RMB 15bn (approx. THB 82bn)

PPP INVESTMENT SCHEME


Beijing Subway Line 16

18 3Q 13/14 earnings presentation Section 2: Business Updates

Line 16

Map Source: Wikipedia


NEW CAPACITY IN BTS-RELATED MEDIA

Media Update


19

16% additional train capacity in FY 14/15 • Full-year effect of 35 C-car trains • Full-year effect of 5x 4-car trains

13% additional train capacity in FY 19/20 • Expected full-year effect of 7X 4-car trains

New Products Capacity

Platform Truss LEDs E-Posters Platform Screen Doors

FULL YEAR EFFECT:

FY 14/15

FULL YEAR EFFECT:

FY 14/15

FULL YEAR EFFECT:

FY 14/15

Train Capacity


JOINT VENTURE WITH DEELIGHT MULTIMEDIA

Media Update VGI enters ‘Roadside Media’ sector


20

PROJECT DETAILS

Partner: Deelight Multimedia (affiliate of Dee Lighting International)

Shareholding Structure in JV: 30% VGI, 70% Deelight

Location: Bangkok

Contract Length: 3 Years (3 years renewable)

Total Initial Investment: ~THB 150mn

EXAT Concession (66 Lightboxes & LEDs)


SECURING 5-YEAR CONTRACTS WITH BIG C

Media Update


21

Extended 5Yrs Contracts with Big C until 2018 • Sales Floor • Non-sales Floor • Radio

Expanded branch coverage from 309 branches to 427

branches

NORTH

NORTHEAST CENTRAL

BKK EAST

SOUTH

19

57

16

18

16

23

*Data includes only large and medium formats as of 31 Dec 2013

VGI Media Coverage of Big C in Thailand*

No. of branches: Large Medium Small Total

As of Sep 2013 118 22 169 309

As of Dec 2013 119 30 278 427


Property Update

RESIDENTIAL PROPERTY


3Q 13/14 Commercial

Property Revenue:

THB 307mn

COMMERCIAL PROPERTY

Eastin Grand Sathorn

45%

Others 32%

U-Hotels 7%

Thana City Golf 16%

Presold (as of 31 Dec 13): 89%

LOCATION: 250M FROM NEW BTS STATION

SITE AREA: 33,420 SQM (20-3-55 RAI)

LAND TENURE: FREEHOLD

AVERAGE SALE PRICE:

THB 76,400 PER SQM

TDC: THB 2,527MN

TRANSFERRED: 75% (as of 31 Dec 13)

ABSTRACTS PROJECT – PHAHONYOTHIN PARK

22

COMMERCIAL PROPERTY REVENUE BREAKDOWN

Opened: Oct 12 3Q 13/14 average occupancy rate: 85%

LOCATION: SATHORN, BANGKOK

SITE AREA: 16-0-81 RAI

LAND TENURE: LEASEHOLD, 30 YEARS LEASE CONTRACT WITH TREASURY DEPT.

SIZE: 3 FLR, 86 ROOMS

CONSTRUCTION PROGRESS:

51% (as of 31 Dec 13)

EXPECTED OPENING: NOV 2014

TDC: THB 690MN

LOCATION: SATHORN, BANGKOK, DIRECT ACCESS TO BTS SURASAK

SITE AREA: 3,828 SQM (2-1-57 RAI)

LAND TENURE: FREEHOLD

SIZE: 33 FLR, 396 ROOMS

TYPE: Business/Leisure Grand Hotel

TOTAL NLA: 17,561 SQM

EASTIN GRAND SATHORN – 4 Stars U SATHORN HOTEL – 4 Stars

http://www.abstractscitizen.com/p-lnsprtn.php


>1.0

>1.2

>1.5

>1.8

>2.0 2.0

(target)

DEC 12 MAY 13 JUL 13 OCT 13 DEC 13 MAR 14

Services Update

NUMBER OF RABBIT CARDS mPAY RABBIT SIM

COMMON TICKETING SYSTEM

23

AIS mPAY Rabbit SIM official launch on 1 Nov 2013 with over-the-air (OTA) top-up function

• Prepaid & postpaid sim • Adult & Student type

• 2.5k users (as of 31 Dec 13)

million cards Exceeded target

MOU signed with Office of Transport and Traffic Policy and Planning (OTP), BTS, BMCL and BSS on 11 Dec 2013 to develop common ticketing system

Interoperable with BTS, BMCL, MRTA, SRT-Airport Rail Link

BSS as one of co-issuer of cards for mass rapid transit

Target launch: end of 2014

AUTO TOP-UP

Automatically top-up value in BBL Rabbit Card and Be 1st Smart Rabbit Card to preset amount when card balance is lower than the threshold

Launch in Mar 2014



Agenda

Section


Section

2 Section

3

BUSINESS UPDATES


APPENDICES



BTSC Capital Reduction Under Section 40(4)(d)of the REVENUE CODE, “payment received as a result of reduction of capital of a company or juristic partnership in so far as the payment does not exceed the sum of profits and reserves of the company or partnership“ is considered as “assessable income” and therefore subject to corporate income tax.

มำตรำ 40(4)(ง) แห่งประมวลรัษฎากร ก ำหนดให้ “เงินลดทนุของบริษัทหรือห้ำงหุ้นสว่นนิติบคุคลเฉพำะสว่นท่ีจ่ำยไมเ่กินกวำ่ก ำไรและเงินท่ีกนัไว้รวมกนั” ถือเป็น ”เงินได้พงึประเมิน” ซึง่อยูใ่นบงัคบัต้องเสยีภำษีเงินได้นิติบคุคล In 3Q 13/14, BTSC reduced its capital by THB 12,050.4mn to THB 4,016.8mn while BTSC’s account has THB 2,086.7 mn Legal Reserve. As a result, BTSG is required to recognise income tax expense of THB 406.7mn (20% tax rate x 97.46% shareholding x THB 2,086.7mn legal reserve) from receiving proceed of this capital reduction.

Share Capital THB 16,067.1mn

Profit

Retained Earnings

THB 16,839.0mn

Legal Reserve THB 2,086.7mn

Non-listed Company Listed Company

Subject to tax

Subject to tax

Tax-exempt Tax-exempt

Tax-exempt if related shares have been held for at least 3 months

before and after dividend payment

date

Subject to tax

BTSC FS as of 30 Jun 13

CAPITAL REDUCTION

DIVIDEND

BTSC FS as of 31 Dec 13

25 3Q 13/14 earnings presentation Appendix 1: BTSC Capital Reduction

Share Capital THB 4,016.8mn

RE THB 973.1mn Legal Reserve

THB 2,086.7mn


3Q 13/14 Income Tax Breakdown

(Unit : THB mn)

3Q 13/14 earnings presentation Appendix 2: 3Q 13/14 Income Tax Breakdown

26

Income tax from BTSC Capital Reduction 406.7

Reversal of income tax from capital gain on sale of VGI shares in the prior period to present in equity

(91.4)

Recording Deferred Tax Asset (DTA) (100.4)

Normal Income tax 223.6

Total 438.5

31.8

P/L

Effective tax rate 21.4%


61,399 (39,458)

(1,080) (614) (6,749)

13,498

Net cash receivedfrom sale to

BTSGIF

De-recognition ofCore mass transit

net assets*

Provision forSpecial Business

Tax (SBT)

DeferredManagement Fee

Income

Elimination of gainon sale to BTSGIF

Gain on sale offuture net fare-box

revenues

NET GAIN ON SALE OF NFR TO BTSGIF OF THB 13,498MN

Capital gain on sale of NFR to BTSGIF

(Unit : THB mn)

*Net of project costs allocated to Media business THB 2,371mn to be amortised over concession period. Expect amortisation of THB 95mn over next 3 years.

Sale of NFR to BTSGIF considered as true sale of intangible asset

TAS 18: Implicit Management Fee for Operation of Core Network. Amortise as gain over remaining concession period c.THB 36mn p/a

TAS 37: BTSG agrees to absorb any SBT on interest payable by BTSGIF, if not waived by Revenue Department. Full provision since April 2013. Expect expense c.THB 300mn over 3 years

TAS28: BTSG sold 2/3 of rights to NFR so can only recognise gain on 2/3 sold. THB 6.7bn amortised as gain over concession period

Subsequent Measurement Method

N/A N/A Revalued Quarterly

Amortised as gain using straight line

N/A N/A

P/L Impact THB 300mn/3yrs THB 36mn/yr

3Q 13/14 earnings presentation Appendix 3: Capital gain on sale of NFR to BTSGIF

27


Amortisation of 1/3 of original project cost (THB 14,084mn) over remaining 16 years B

Share of net profit from BTSGIF

Transactions (THB mn) BTSG Portion (33%)

Investment in associates 14,084

Add Net investment income 44,767

Less Dividend (24,300)

Less Capital reduction (20,466)

Amortisation of project cost 14,084

28 3Q 13/14 earnings presentation Appendix 4: Share of net profit from BTSGIF

SHARE OF NET PROFIT FROM BTSGIF CALCULATION METHOD

1/3 net investment income from BTSGIF A

BTSGIF (100%)

61,399

134,300

(72,901)

(61,399)

61,399

EQUITY METHOD APPLIED TO PROJECT COST AMORTISATION

Amortised by ridership until 0 Revalued until 0

A

B

Note: Components A and B will impact P&L

= SHARE OF NET PROFIT FROM BTSGIF

Less


IR Contacts 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 Email: [email protected] Fax: +66(0) 2273 8610 Website: www.btsgroup.co.th

Thank You


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