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BTSGIF General Presentation June 2016
Disclaimer
This is not prospectus of BTS Rail Mass Transit Growth Infrastructure Fund (“BTSGIF” or “the Fund”). Investment in the Funds contains certain risk. Before investing, please carefully study the prospectus of the Funds. An investment in investment units shall not be deemed as deposit of money. The unitholders may receive an amount of any return that is more or less than the initial amount invested. Furthermore, the Fund has intention to invest in infrastructure projects which is a long-term investment; as a consequence, the investors ought to be aware of its risks from and returns on investment in investment units. This Fund invests in the future net farebox revenue from the Core BTS SkyTrain System. Its value may decrease along with elapse of the concession term, thus decreasing the value of the investment units accordingly. The unitholders will receive return of initial investment in the form of dividend and capital reduction. Once the term expires according to the Net Revenue Purchase and Transfer Agreement that the Fund has invested in, the value of the investment units may decrease to Baht zero. This document has been prepared solely for the information purpose. The information contained herein is general and does not constitute advice or opinion, and should not be regarded as a substitute for detailed advice in individual cases. None of this information in this document constitutes an offer to treat, buy or sell any security or to participate in any trading strategy. Third parties cannot derive any rights from this document. While particular attention has been paid to the contents of this document, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this document may be subject to change or update without notice. No liability (such as, but not limited to, direct, consequential, special, punitive or indirect damages) will be accepted for any loss sustained by readers as a result of using this document or basing decisions on it. Please note that the investment is not a deposit of money and may be subject to certain risks. The value of your investment may rise or fall and also past performance is not insisting of future performance and shall in no event be deemed as such.
For more information relating to the Fund, please visit www.btsgif.com or www.bblam.co.th
2 BTSGIF General Presentation
3
Page
I. Background of Infrastructure Funds (IFFs) 4
II. BTSGIF at a Glance 8
III. BTSGIF Investment Highlights 14
IV. BTSGIF Performance Summary 23
V. Conclusion 29
Appendix
Forecast of ridership, farebox revenue and net farebox revenue until FY29/30 31
Costs and additional investment projection 32
Transaction structure 33
Structure of Step-in Mechanism 34
IFFs liquidity comparison 35
BTSGIF income statement 36
BTSGIF total income from investment in NRTA 37
BTSGIF Balance Sheet 38
Initial assets and O&M business (BTSGIF’s call option) 39
Targeted lines by BTS Group 40
Contents
BTSGIF General Presentation
4
Infrastructure Funds (IFFs) Background and introduction of Infrastructure Fund
An Infrastructure Fund is an entity that raises capital
from the public to invest in 11 infrastructure assets.
Infrastructure Assets
Infrastructure Fund
Public Investors
Assets Owner
Investor
Purpose of Infrastructure Fund
Government and Capital Market Regulatory Bodies’ initiative
• To develop the country's infrastructure
• To allow access to infrastructure projects for a broader range of investors
• New financing alternative in order to speed up country’s infrastructure projects and to release public debt burden
IFF is exempted from corporate income tax in Thailand
Dividends received by individuals (Thailand and non-Thai) will be exempt from income tax for 10 years
Payout of not less than 90% of adjusted net income p.a.
• Rail mass transit
• Toll road/ Express way
• Airport
• Water supply
• Water supply management/ Irrigation
• Power plant
• Telecommunication
• Deep seaport
• Alternative energy
• Natural disaster preventive system
• Waste management
Tax efficient investment vehicle that allows public market participants (institutional and retails) access to yield generating infrastructure investments.
What is an Infrastructure Fund?
BTSGIF General Presentation Section I: Background of Infrastructure Funds (IFFs)
11 categorised assets in Infrastructure Fund
Key benefits of Infrastructure Fund
4
5
Key features of IFFs IFF is an alternative tax efficient structure and high payout vehicle
Infrastructure Fund (IFF) Property Fund (PFUND) Real Estate Investment Trust (REIT)
Permissible investment assets • 11 specified infrastructure assets and • Able to invest in green field projects
i) not exceed 30% of total assets and sell to public (>= 500 buyers, list the investment units in SET) ii) exceed 30% of total assets and sell to high net worth investors (HNW) only (>= 35 buyers, must list the investment units within 3 years after completion)
Invest in specified types of real estates under positive list (whether leasehold or freehold)
• Invest in specified real estates or • Wholly own (not less than 99% of
shares) a company established as the REIT (property holding business)
• Able to invest in green field projects (with some limitations)
Foreign Investment Allowed (but only for projects that benefits widely to public in Thailand)
Not allowed Allowed
Investment Requirement Must invest at least 75% of total asset value in infrastructure assets no later than 6 months from the fund registration date
Must invest at least 75% of NAV in real estates or the leasehold rights of real estates
Must invest at least 75% of total asset value in real estates or the leasehold rights of real estates
Minimum paid-up capital after the offering (THB mn)
THB 2,000mn THB 500mn THB 500mn
Leverage Not exceed 3 times of equity Not exceed 10% of net asset value Not exceed 35% of total asset value (given no investment credit rating) Not exceed 60% of total asset value (the REIT obtains an investment credit rating)
Dividend payout Minimum of 90% of annual adjusted net profit
Minimum of 90% of annual adjusted net profit
Minimum of 90% of annual adjusted net profit
Tax implication (investor level)
For individual (Thai & foreign): exempt tax on dividend for 10 years / no tax on capital gain For Thai corporate: 20% CIT for dividend (Exempted 50% for non-listed & 100% for listed company) / 20% CIT for capital gain For foreign corporate: N/A
For Thai individual: 10% WHT on dividend / no tax on capital gain For Thai corporate: 20% CIT for dividend (Exempted 50% for non-listed & 100% for listed company) / 20% CIT for capital gain For foreign individual & corporate: N/A
For individual (Thai & foreign): 10% WHT on dividend / no tax on capital gain For Thai corporate: 10% WHT on dividend / 20% CIT for dividend / 20% CIT for capital gain For foreign corporate: 10% WHT on dividend / N/A for capital gain
Total market capitalisation* THB 234bn (currently 5 funds in Thailand) THB 397bn (currently 60 funds/REITs in Thailand)
BTSGIF General Presentation Section I: Background of Infrastructure Funds (IFFs)
*As of 1 June 2016
6
Infrastructure Funds in Thailand Total market cap of THB 234bn*, THB 203bn raised from the public markets
BTSGIF ABPIF DIF (known as TRUEIF) JASIF EGATIF
Sector Transportation & Logistics Energy & Utilities Info & Communication Technology
Info & Communication Technology
Energy & Utilities
Sponsor Name / % of shares*
BTS Group Holding Public Co., Ltd (33.33%)
AMATA B. Grimm Power Co., Ltd (29.97%)
TRUE Corporation Public Co., Ltd (28.11%)
Jasmine international Public Co., Ltd (33.33%)
Electricity Generating Authority of Thailand (25.00%)
First-day Trade 19 Apr 2013 27 Sep 2013 27 Dec 2013 16 Feb 2015 13 Jul 2015
Size of fund Cap during IPO (THB bn)
62.5 6.3 58.1 55.0 20.9
Initial Par Value (THB) 10.80 10.50 10.00 10.00 10.00
No. of Units (mn) 5,788 600 5,808 5,500 2,085.5
Market Cap* (THB bn)
66.6 5.0 83.6 53.9 24.2
ADTV* (THB mn)
62.9 0.5 91.1 173.1 11.0
Underlying Asset Future net farebox revenue to be generated from the operation of the Core BTS SkyTrain System until the Concession Expiry Date, which is Dec 2029
Revenue Sharing Agreement with “B.Grimm 1 and
B.Grimm 2” which carry out power plant business until Sep 2019 and Sep 2022 respectively in Amata Nakorn Industrial Estate, Chonburi
Right to the rental revenues of 5,845 telecommunication towers, core fiber-optic cable grids and related transmission equipment (FOC system), according to HSPA lease agreement in which will expire on Aug 2025 and ownership of FOC, broadband network and towers (for initial assets)
Ownership of 980,000 core kilometers fiber optic network for broadband internet of Triple T Broadband plc. (TTTBB). The lease of 80% of fiber optic network will expire Feb 2026. The remaining 20%, JASIF can renew the contract every 3 years
Future Availability Revenue obtainable from North Bangkok Power Plant Block 1, a Contracted Capacity of 670 MW, which is operated and owned by EGAT, for the period of 20 years
Mgt Company BBLAM KAsset SCBAM BBLAM KTAM
IB for the listing Phatra KBank SCB BLS SCB
* Information as of 31 May 2016
BTSGIF General Presentation Section I: Background of Infrastructure Funds (IFFs)
7
Page
I. Background of Infrastructure Funds (IFFs) 4
II. BTSGIF at a Glance 8
III. BTSGIF Investment Highlights 14
IV. BTSGIF Performance Summary 23
V. Conclusion 29
Appendix
Forecast of ridership, farebox revenue and net farebox revenue until FY29/30 31
Costs and additional investment projection 32
Transaction structure 33
Structure of Step-in Mechanism 34
IFFs liquidity comparison 35
BTSGIF income statement 36
BTSGIF total income from investment in NRTA 37
BTSGIF Balance Sheet 38
Initial assets and O&M business (BTSGIF’s call option) 39
Targeted lines by BTS Group 40
Contents
BTSGIF General Presentation
8
BTSGIF At a Glance BTSGIF the big picture
BTSGIF General Presentation Section II: BTSGIF at a Glance
THB
62.5bn
Raised from IPO
Concession expiry in 2029
≈14 years
remaining
Annual passengers in core network
(FY 15/16)
≈ 233mn
trips
10.6%
CAGR
of Farebox revenue (15 yrs since inception)
of Core BTS SkyTrain (FY 15/16)
70.0%
EBITDA margin
Implied annual distributable yield
(FY 15/16)
7.1%
Yield
BTSGIF is the first Infrastructure Fund in Thailand Invest in the 23.5km of BTS Core Network with 14 years concession
remaining Position to benefit from passenger growth, fare increase and operating
leverage on Core Network Seek for new opportunities from mass transit infrastructure projects with
strong cashflow potential
Stock code BTSGIF
Outstanding shares (mn) 5,788
Market capitalisation (THB mn)* 66.6
Market capitalisation (USD mn)* 1.9
ADTV (THB mn)* 62.9
ADTV (USD mn)* 1.8
BTSGIF Stock information
*as of 31 May 2016
9
BTSGIF At a Glance Invest in 23.5km of BTS Core Network, 14 years concession remaining
Fund Name BTS Rail Mass Transit Growth Infrastructure Fund (“BTSGIF”)
Sponsors BTS Group Holdings PCL (“BTSG”) and Bangkok Mass Transit System PCL (“BTSC”)
Fund Management Company
BBL Asset Management Co., Ltd. (“BBLAM”)
Fund Supervisor Standard Chartered Bank (Thai) Pcl. (“SCBT”)
Initial Asset • Future net farebox revenue (Farebox revenue less related operating cost and CAPEX) from the Core BTS SkyTrain system (23.5km)
• Concession period ending 4 December 2029 (approximately 14 years remaining)
• Investment cost : THB 61,399mn • American Appraisal appraisal value: THB 61,000mn (Discount rate 9.0%) • fnAsia appraisal value: THB 59,400mn (Discount
rate 8.8%)(1)
Total Investment Units 5,788mn investment units
Par Value THB 10.8 per investment unit (THB 10.611 per investment unit at present)
Registered Capital THB 62,510.4mn, THB 61,416.5mn at present
Lock-up Arrangement Lock-up of BTSG’s 33.3% holding of BTSGIF units for 10 years from 2012/13 to 2022/23
(1) Discount cash flow without adjusting Mid-Year Convention
DARK GREEN MO CHIT – ON NUT 17.0km
LIGHT GREEN NATIONAL STADIUM - SAPHAN TAKSIN 6.5km
• 30-year concession (ending 4 Dec 2029) to exclusively collect ridership fare (and bear related expenses and capital expenditure)
• 23 stations over 23.5km located at the heart of Bangkok • All investments made by BTSC: Including civil works, E&M and trains
(except land acquisition) • No revenue sharing or concession fees for BMA
BTSGIF General Presentation Section II: BTSGIF at a Glance
Fund summary Initial asset: Core BTS SkyTrain system (until 2029)
10
BTSGIF At a Glance Strong governance framework: one-third investment by BTS with 10 years lock-up
BTSGIF
Fund Supervisor (Standard Chartered Bank (Thai))
Fund Management Company (BBL Asset Management Co. Ltd)
BTSC
33.3%
(lock up 10 yrs)
Public Investors
66.7%
BTSG
Infrastructure Fund Manager
• Ongoing management of BTSGIF
• Monitor BTSC’s operation
• Appointed by BBLAM
• Committees must include experts in Sky Train business
• Give investment advice on investment to fund manager
BTSC Board Controls
• Comprise of 1/3 from BTSG, 1/3 from BBLAM and 1/3 as independent directors
• Resolution on Reserved Matters requires at least 2 votes from BBLAM
Nominate Board Representatives at BTSC
• Monitor BTSC’s operation and compliance under NRTA
• Exercise veto vote on Reserved Matters
97.5%
Investment Advisory Committee
Fund Management
NRTA* between BTSC and BTSGIF
Fund Supervisor Agreement
• Supervise Fund Management Company • Make payment for fund expenses • Keep fund’s assets
* NRTA: Net Revenue Purchase and Transfer Agreement
BTSGIF General Presentation Section II: BTSGIF at a Glance
Management structure
11
BTSGIF At a Glance Secure net farebox revenue transferred to BTSGIF
I. Net farebox revenue (transferred to BTSGIF daily)
FAREBOX REVENUE OPERATING EXPENSES
CAPITAL EXPENDITURE
II. Incentive fee
All farebox revenue from passengers in the Core BTS SkyTrain system
Other revenue and compensation from any person under, arising out of or relating to concession or the farebox revenue of the Core BTS SkyTrain system
Excludes revenue from O&M business extension, media business and revenue from BTSC’s other business
Cost relevant to the Core BTS SkyTrain system such as
• maintenance expense,
• staff cost,
• electricity, etc.
New rolling stock for the Core BTS SkyTrain system to serve future ridership
net of PAYABLE BY BTSGIF TO BTSC ONLY WHEN NET FAREBOX REVENUE EXCEEDS BUDGET
1. NO INCENTIVE FEE If actual net farebox revenue ≤ 100% of Budget 2. 10% INCENTIVE FEE On actual amount exceeding 100% but not exceeding 125% of budget 3. FEE FROM ITEM 2 PLUS 15% OF THE INCREMENTAL AMOUNT EXCEEDING 125% If actual amount > 125% of budget
BTSGIF General Presentation Section II: BTSGIF at a Glance
BTSGIF revenue
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
8.00
8.50
9.00
9.50
10.00
10.50
11.00
11.50
12.00
May Jun
Jul
Au
g
Sep
Oct
No
v
De
c
Jan
Feb
Mar
Ap
r
May Jun
Jul
Au
g
Sep
Oct
No
v
De
c
Jan
Feb
Mar
Ap
r
May Jun
Jul
Au
g
Sep
Oct
No
v
De
c
Jan
Feb
Mar
Ap
r
May
Monthly ADTV - RHS Share price
12
BTSGIF At a Glance Key milestones since BTSGIF inception
2013
17 Apr 13
IPO at THB 10.8
29 Aug 13
XD for 1st dividend
(THB 0.117)
THB / unit THB mn
BTSGIF General Presentation Section II: BTSGIF at a Glance
Jun 13
Increase fare
To THB 15-42
26 Aug 14
XD for 5th dividend
(THB 0.151)
26 Aug 14
XN for 1sr capital reduction
(THB 0.077)
4 Jun 14
XD for 4th dividend
(THB 0.154)
25 Feb 14
XD for 3rd dividend
(THB 0.150)
26 Nov13
XD for 2nd dividend
(THB 0.158)
25 Nov 14
XD for 6th dividend
(THB 0.156)
24 Feb 15
XD for 7th dividend
(THB 0.161)
3 Jun 15
XD for 8th dividend
(THB 0.138)
3 Jun 15
XN for 2nd capital reduction
(THB 0.048) 19 Aug 15
XD for 9th dividend
(THB 0.168)
1 Jul 15
30-Day Cards Promotion adjustment
2014 2015
18 Nov 15
XD for 10th dividend
(THB 0.179)
19 Feb 16
XD for 11th dividend
(THB 0.178)
25 May 16
XD for 12th dividend
(THB 0.167)
25 May 16
XN for 3rd capital reduction
(THB 0.064)
2 Jan 16
Stored Value Cards Promotion Cancellation
2016
13
Page
I. Background of Infrastructure Funds (IFFs) 4
II. BTSGIF at a Glance 8
III. BTSGIF Investment Highlights 14
IV. BTSGIF Performance Summary 23
V. Conclusion 29
Appendix
Forecast of ridership, farebox revenue and net farebox revenue until FY29/30 31
Costs and additional investment projection 32
Transaction structure 33
Structure of Step-in Mechanism 34
IFFs liquidity comparison 35
BTSGIF income statement 36
BTSGIF total income from investment in NRTA 37
BTSGIF Balance Sheet 38
Initial assets and O&M business (BTSGIF’s call option) 39
Targeted lines by BTS Group 40
Contents
BTSGIF General Presentation
14
BTSGIF Investment Highlights
1 Attractive industry dynamics and strong government support • Government’s plan is to expand mass transit network from 84.8km currently to 508.4km in 2029 • Market share of mass transit is expected to increase from 6% to over 23% in 2037 • The Thai government has made explicit its policy to develop Bangkok’s infrastructure by investing in mass transit projects
4 Efficient operations with significant operating leverage • Sustainable margin from the strong operational performance and operating leverage • Good margin compared to regional mass transit peers
2 Resilient business with proven track record • Ridership has showed resilient growth, pass through several situations (CAGR 9.6% since inception)
5 Ample capacity with limited CAPEX for concession period
3 Exclusive concession with flexibility to increase fares • Able to increase fare in the core network without BMA’s or national government’s approval, in case under the authorised fare
6 BTSC’s personnel with extensive experience in the mass transit business
7 Substantial investment opportunities from accretive mass transit expansion
BTSGIF General Presentation Section III: BTSGIF Investment Highlights
• Additional 7x 4-car trains and 35x 2-car trains are required under concession period
• RoFR and call option on BTS existing contracts (30-yr O&M contracts and concession extension) as well as new mass transit lines by BTS • Also able to seek out non-BTS related infrastructure opportunities and focus on projects with strong cash flow potential
• Developer: BTS core network constructed in 35 months • Operator: 16-years’ experience in operating the SkyTrain green line network
5.5% 5.8%
23.8%
2010A 2015A 2029E 2032E
Mass transit market share
74.2 84.8
508.4 Rail length target (km)
15
BTSGIF Investment Highlights 1. Attractive industry dynamics and strong government support
DARK GREEN MO CHIT – BEARING 22.3km
RED PHAYATHAI - SUVARNABHUMI 28.5km
LIGHT GREEN NATIONAL STADIUM – BANG WA 14.0km
BLUE BANG SUE - HUA LAMPHONG 20.0km
Rail mass transit target by government
Sources: Office of Transport and Traffic Policy and Planning and Bangkok Metro Politian Administration.
*Office of Transport and Traffic Policy and Planning
BTSGIF General Presentation Section III: BTSGIF Investment Highlights
Existing network (84.8km, year 2015) Rail mass transit master plan (508.4km, year 2029E)
Rail mass transit market share (CURRENT)
• Seoul 51% • Hong Kong 46% • Singapore 40% • Tokyo 36% • Guangzhou 17%
• Bangkok 6%
Rail mass transit market share (YEAR 2032E)
• Seoul xx% • Hong Kong xx% • Singapore xx% • Tokyo xx% • Guangzhou xx%
• Bangkok 23.8%
*Office of Transport and Traffic Policy and Planning
1,4
19
1,7
80
2,1
22
2,2
94
2,5
73
2,8
17
3,0
66
3,2
24
3,2
92
3,4
85
3,5
45
4,2
97
4,8
96
5,6
77
5,8
74
6,3
97
FY00/01 FY01/02 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16
Farebox revenue (THB mn)
59
79 96
105 118
132 139 133 136 144 145
176
197 215 219
233
Ridership (mn)
16
BTSGIF Investment Highlights 2. Resilient business with proven track record
Jul 04: Opening of Bangkok MRT System (Blue line) May 10:
Opening of Bangkok BRT; Thai political protests
Aug 10: Opening of Airport Rail Link
Aug 11: On Nut – Bearing extension opening
Oct – Nov 11: Floods
INITIAL GROWTH RIDERSHIP CAGR (3 YRS): 21%
STABLE GROWTH RIDERSHIP CAGR (5 YRS): 5%
FASTER GROWTH RIDERSHIP CAGR (7 YRS) 8%
Dec 99: BTS SkyTrain service opening
Mar 07: First fare rate increase
May 09: Opening of Silom Line extension
Farebox revenue CAGR: 10.6% Ridership CAGR: 9.6%
GROWTH (15 YRS)
Nov 13: Thai political protests
Dec 13: Wongwian Yai – Bang Wa extension opening
Apr 13: Sale of net farebox revenue to BTSGIF
Jun 13: Fare increase
BTSGIF General Presentation Section III: BTSGIF Investment Highlights
Jul 15: 30-Day Cards Promotion adjustment
Jan 16: Stored Value Cards Promotion
Cancellation
PURSE (Stored Value Card)* FY15/16 AVG FARE THB 26.4
36%
30% 8%
25%
1%
36%
29% 7%
27%
1%
21
.4
22
.1
24
.2
24
.2
24
.1
24
.4
24
.4
24
.8
26
.4
26
.9
27
.5
FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16
17
Can be adjusted no more than once every 18 months by making announcement to BMA and public 30 days in advance Must not exceed the Authorised fare
EFFECTIVE FARE
Normal situation: upon change of Bangkok’s CPI >=5%, may adjust up to 7% (No approval required)
Special situation: upon change of CPI (>= 9%), USD/THB foreign exchange rate, interest rate or electricity costs (BMA approval required)
AUTHORISED FARE
THB / Trip
20.1
26.8
33.5
40.2
46.9
53.6
60.3
15.0
22.0 25.0
28.0 31.0
34.0 37.0
42.0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
AUTHORISED FARE
EFFECTIVE FARE
POTENTIAL FARE UPSIDE
NO. OF STATIONS
THB
BTSGIF Investment Highlights 3. Exclusive concession with flexibility to increase fares
BTSGIF General Presentation Section III: BTSGIF Investment Highlights
Fare adjustment mechanism Distance-based fare by number of stations
Historical average fare Ridership by ticket types
FY14/15 FY15/16
SJT FY15/16 AVG FARE THB 30.8
30-DAY PASS (ADULT)* FY15/16 AVG FARE THB 25.8
* Counted as Rabbit
30-DAY PASS (STUDENT)* FY15/16 AVG FARE THB 20.8
ONE-DAY PASS FY15/16 AVG FARE THB 35.7
35%
28% 24%
6%
4% 3%
38%
27%
23%
6%
4%
2%
54.9% 57.1%
67.5% 67.8% 69.1% 67.4% 70.0%
Core BTS SkyTrain EBITDA margin (%)
144 145
176 197
215 219 233
FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16
Core BTS SkyTrain Ridership (mn trips)
67.4%
17.4%
43.1%
70.0%
14.1%
42.6%
BTS Sky Train* Singapore MRT* Hong Kong MTR**
FY 14/15 FY 15/16
18
BTSGIF Investment Highlights 4. Efficient operations with significant operating leverage
* FY ending 31 Mar 2015, 2016 ** FY ending 31 Dec 2015, 2016
BTSGIF General Presentation Section III: BTSGIF Investment Highlights
Ridership growth with sustained margin expansion EBITDA Margin comparison with regional peers
Costs and SG&A breakdown Historical maintenance and overhaul
367 387 391 417 377 365 344 336
376 374
59
171 200
59
40 27 11 79
95 75
FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16
General maintenance expenses Major overhaul expenses(THB mn) STAFF COSTS
FY15/16 FY14/15
MAINTENANCE
UTILITIES
ADMIN
SELLING EXPENSES
OTHERS
19
BTSGIF Investment Highlights 5. Ample capacity with limited CAPEX for concession period
* Passenger per peak hour per direction; Based on 2 assumptions: i) 6-car trains in service and ii) 2 min HW ** Based on Sukhumvit Line morning peak time *** Based on existing contracts (core network and O&M contracts up to 2042). It is estimated that BTSC will add 7 new four-carriage trains (totaling 28 carriages) between FY16/17-FY19/20. Cost to be allocated to BTSGIF is estimated at THB 800mn.
Estimated Fleet***
X7 28 +13.5% ~THB 2.0bn
70
+47.1%
Total Fleet X59 306
Current Fleet NO. OF TRAINS TOTAL CARRIAGES CAPACITY INCREASE (CUMULATIVE)
INDICATIVE CAPEX (THB mn)
X35 105 FULLY PAID
X12 48
35
FULLY PAID
FULLY PAID
X5 20
FULLY PAID
Total Current Fleet X52 208
Already fully operated in Feb 2014
Expect to order in 2017, expect to be delivered in 2019
Expected required by 2032
SYSTEM DESIGN
CAPACITY
OF 50,000 PPHPD*
CURRENT
CAPACITY
OF 24,000** PPHPD
Already operated in May 2013
Already fully operated in Feb 2014
Already ordered in 2016, expect to be delivered in 2019
BTSGIF General Presentation Section III: BTSGIF Investment Highlights
20
BTSGIF Investment Highlights 6. BTSC’s personnel with extensive experience in the mass transit business
The BTSC team is composed of personnel with extensive experience in the mass transit business
Reliable operations team
• 16-year track record
• All operations conducted in-house
• Service reliability recognised globally to be of a high standard
• Maintained full service operation and suffered no major asset damage during natural disasters
Impeccable safety record
• Lloyd’s Register: Certificate of Safety Management Systems
• OHSAS 18001:2007: Certificate of Health and Safety
• ISO9000:2008
• No major system accidents in the past 16-year operation
Strong management
expertise
• Mr. Keeree Kanjanapas
Executive Chairman
• Mr. Surapong Laoha-Unya
Chief Executive Officer / (Acting) Chief Operating Officer / (Acting) Chief Administrative Officer
• Dr. Anat Arbhabhirama
Chairman of the Advisory Committee
• Mr. Kong Chi Keung
Chief Financial Officer
BTSGIF General Presentation Section III: BTSGIF Investment Highlights
21
BTSGIF Investment Highlights 7. Substantial investment opportunities from accretive mass transit expansion
LINE ROUTE OPERATE YEAR CONSTRUCTION
PROGRESS DISTANCE (KM)
PURPLE BANG YAI - BANG SUE 2016 UNDER CONSTR. 23.0
BLUE HUA LAMPHONG - BANG KHAE 2017 UNDER CONSTR. 14.0
BLUE BANG SUE - THA PRA 2017 UNDER CONSTR. 13.0
DARK RED BANG SUE - RANGSIT 2017 UNDER CONSTR. 26.3
DARK GREEN SOUTH
BEARING - SAMUT PRAKARN 2019 UNDER CONSTR. 12.8
DARK GREEN NORTH
MO CHIT – SAPHAN MAI – KHU KHOT 2020 UNDER CONSTR. 18.4
LIGHT GREEN BANG WA – BOROMMARATCHA CHONNANI
2019 7.0
LRT BANG NA - SUVARNABHUMI 2019 18.3
GREY (I) WATCHARAPHON – THONG LO 2019 16.3
PINK KHAE RAI – PAK GRED – MIN BURI 2020 – 2021 36.0
DARK GREEN SAMUT PRAKARN - BANGPU 2018 7.0
YELLOW LAD PRAO – SAM RONG 2019 30.4
ORANGE TALING CHAN – MIN BURI 2019 39.8
LIGHT RED BANG SUE - PHAYATHAI – MAKKASAN 2019 9.0
LIGHT RED MAKKASAN – HUA MARK 2019 10.0
DARK RED RANGSIT – THAMMASART UNIVERSITY
2018 10.0
DARK RED BANG SUE - HUA LAMPHONG 2018 6.5
TOTAL (KM) 297.8
BTSGIF General Presentation Section III: BTSGIF Investment Highlights
Existing BTS SkyTrain (36.3km under operating contracts) 297.8km ongoing projects prioritised by the government
(107.5km under construction, 38.2km green line extensions)
BTSC to receive pre-determined annual O&M fee for the O&M for BTS existing contracts (30-yr O&M contracts and concession extension)
I. Green line extension (30 years to 2 May 2042)
Sukhumvit Extension (On Nut – Bearing) Silom Extension (Saphan Taksin – Bang Wa) II. Core SkyTrain System after concession expires (12 years from 5 Dec 2029 to 2 May 2042)
I. SILOM EXTENSION Saphan Taksin – Bang Wa 7.5km (May 2012-2042)
I. SUKHUMVIT EXTENSION On Nut – Bearing
5.3 km (May 2012-2042)
II. CORE NETWORK (23.5km) (Dec 2029 – May 2042)
12.8km of existing extensions & 23.5km of core network (post 2029)
22
Page
I. Background of Infrastructure Funds (IFFs) 4
II. BTSGIF at a Glance 8
III. BTSGIF Investment Highlights 14
IV. BTSGIF Performance Summary 23
V. Conclusion 29
Appendix
Forecast of ridership, farebox revenue and net farebox revenue until FY29/30 31
Costs and additional investment projection 32
Transaction structure 33
Structure of Step-in Mechanism 34
IFFs liquidity comparison 35
BTSGIF income statement 36
BTSGIF total income from investment in NRTA 37
BTSGIF Balance Sheet 38
Initial assets and O&M business (BTSGIF’s call option) 39
Targeted lines by BTS Group 40
Contents
BTSGIF General Presentation
23
BTSGIF Performance Summary Financial performance summary
1
Income Statement (THB mn) FY 13/14* FY 14/15 FY 15/16
Total income 3,808.6 3,983.7 4,497.4
Income from investment in NRTA 3,773.8 3,957.2 4,475.3
Total fund expense (THB mn) (455.6) (464.0) (476.9)
Net investment income (THB mn) 3,353.0 3,519.7 4,020.5
Total distribution available to unitholders 3,706.8 3,889.7 4,391.5
Balance Sheet (THB mn)
NAV 65,104.5 65,488.4 66,783.6
Debt - - -
Available amount for capital reduction 353.8 370.0 371.0
Per unit Data (THB per unit)
NAV per unit 11.2481 11.3145 11.5382
Dividend per unit 0.579 0.606 0.692
Available amount for capital reduction per unit 0.061 0.064 0.064
Total distribution available to unitholders per unit 0.640 0.670 0.756
Capital per unit 10.800 10.723 10.675
Key ratio
Dividend yield** 5.6% 5.7% 6.5%
Implied annual distributable yield (%)*** 6.2% 6.2% 7.1%
Debt/Equity No leverage
* FY 13/14 started from 17 April 2013 to 31 March 2014 ** Dividend per unit / capital per unit *** Total distribution available to unitholders per unit / capital per unit
Through the growth in gross farebox revenue (resulted from strong ridership growth and fare increase), BTSGIF has achieved remarkable total income growth since inception. For FY 16/17E, ridership is expected to grow 5-6% YoY and annual average fare is targeted to increase 1% from previous years.
Net investment income (to be paid as dividend payment to unitholders) grew 14% from FY 14/15 as total income increased at a higher rate than the increase in total expenses.
BTSGIF paid its total distribution to unitholders in 2 forms i) dividend payment (at least 90% of adjusted net profit) ii) capital reduction from amortisation of fund issuance cost (for FY
13/14 to FY 15/16) and from a decrease in value of Investment (NAV) in the future.
1
2
3
4
2
3
4
Currently, BTSGIF has no debt. Per IFF criteria, BTSGIF is able to leverage at maximum of 3 times of equity.
4
Core network ridership and fare
FY 15/16 Ridership +6.3% YoY
FY 15/16 Fare +2.4% YoY
BTSGIF General Presentation Section IV: BTSGIF Performance Summary
214.7 218.7
232.5 26.4
26.9
27.5
FY 13/14 FY 14/15 FY 15/16
Ridership (mn trips) Fare (THB per trips)
3,706.8 3,889.7
4,391.5
FY 13/14 FY 14/15 FY 15/16
+12.9% YoY
3,773.8 3,957.2
4,475.3
FY 13/14 FY 14/15 FY 15/16
+13.1% YoY
3,353.0 3,519.7
4,020.5
FY 13/14 FY 14/15 FY 15/16
+14.2% YoY
5,469.6 5,874.1 6,397.1
FY 13/14 FY 14/15 FY 15/16
24
BTSGIF Performance Summary Key financial highlights
THB mn THB mn
THB mn THB mn
FY 13/14 started from 17 April 2013 to 31 March 2014 **Total distribution available to unitholders includes capital reduction (paid from amortisation of fund set-up cost)
+7.4% YoY
+4.9% YoY
+5.0% YoY +4.9%
YoY
BTSGIF General Presentation Section IV: BTSGIF Performance Summary
Revenue (gross farebox revenue) Income from investment in NRTA
Net investment income* Total distribution available to unitholders** FY 13/14 started from 17 April 2013 to 31 March 2014
FY 13/14 started from 17 April 2013 to 31 March 2014
FY 13/14 started from 17 April 2013 to 31 March 2014
*Income from investment in NRTA less fund expenses
+8.9% YoY
25
BTSGIF Performance Summary Operating costs and CAPEX summary
BTSGIF General Presentation Section IV: BTSGIF Performance Summary
Key costs breakdown
69.0% 67.4% 70.0% EBITDA margin (%)
THB 1,696 mn
THB 1,917 mn
THB 1,922 mn
FY 13/14 started from 17 April 2013 to 31 March 2014. *EBITDA Margin = Income from investment in NRTA / total gross farebox revenue
72.5% 66.4% 65.4%
4.9%
3.8% 3.9%
18.1%
19.0% 19.2%
4.4% 10.8% 11.4%
FY 13/14 FY 14/15 FY 15/16
Capital expenditures
Administrative expenses
Selling expenses
Cost of farebox
26
BTSGIF – Financial Performance Summary Monthly net assets value (NAV) and movement in NAV
THB per unit
Number of units (mn units)
Value per unit (THB)
Registered capital
(THB mn)
Capital balance - 31 Mar 14 5,788 10.800 62,510.4
I.Reduction of investment unit value (12 Sep 14)
- (0.077) (445.7)
Capital balance - 30 Sep 14 5,788 10.723 62,064.7
II.Reduction of investment unit value (19 Jun 15)
- (0.048) (277.8)
Capital balance - 31 Mar 16 5,788 10.675 61,786.9
BTSGIF General Presentation Section IV: BTSGIF Performance Summary
Monthly NAV per unit since BTSGIF inception
Movement in NAV A reduction in registered capital since BTSGIF inception
10.82
10.87
11.00
11.06
11.11
11.11
11.17
11.07
11.18
11.23
11.14
11.25
11.30
11.20
11.25 11.30
11.13
11.23
11.28
11.19
11.28 11.34
11.22
11.31 11.37
11.29
11.33 11.39
11.28
11.37 11.43
11.32
11.40
11.46
11.34
11.54
Ap
r-1
3
May
-13
Jun
-13
Jul-
13
Au
g-1
3
Sep
-13
Oct
-13
No
v-1
3
Dec
-13
Jan
-14
Feb
-14
Mar
-14
Ap
r-1
4
May
-14
Jun
-14
Jul-
14
Au
g-1
4
Sep
-14
Oct
-14
No
v-1
4
Dec
-14
Jan
-15
Feb
-15
Mar
-15
Ap
r-1
5
May
-15
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
Dec
-15
Jan
-16
Feb
-16
Mar
-16
11.31 0.69 0.24 (0.05) (0.66) 11.54 THB / unit
THB bn
65.49
4.02 1.39 (0.28)
66.78
(3.84)
NAV31 Mar 15
Netinvestment
income
Net gains oninvestments
Decrease inpaid-in capitalduring period
Distributionsto unitholdersduring period
NAV31 Mar 16
BTS Group 33%
Institutional - Thai 35%
Institutional - Foreign
19%
Individual - Thai 13%
Individual - Foreign
0% 0.061
0.064 0.064
FY 13/14 FY 14/15 FY 15/16
0.579 0.606 0.692
FY 13/14 FY 14/15 FY 15/16
0.1
17
0.1
58
0.1
5
0.1
54
0.1
51
0.1
56
0.1
61
0.1
38
0.1
68
0.1
79
0.1
78
0.1
67
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Capital reduction per unit (THB)3
27
BTSGIF – Financial Performance Summary Constant return to unitholders through dividend payment and capital reduction
No. of Unit % of total
1 BTS GROUP HOLDINGS PLC 1,929,000,000 33.3% 2 BANGKOK LIFE ASSURANCE PUBLIC
COMPANY LIMITED 397,813,100 6.9%
3 LITTLEDOWN NOMINEES LIMITED 200,000,000 3.5% 4 CHASE NOMINEES LIMITED 198,583,789 3.4% 5 SOCIAL SECURITY OFFICE 184,853,400 3.2% 6 HSBC FUND SERVICES DEPARTMENT 169,742,600 2.9% 7 KRUNGTHAI-AXA LIFE INSURANCE PCL 160,837,000 2.8%
8 KIATNAKIN BANK PUBLIC COMPANY LIMITED
125,098,600 2.2%
9 HSBC (SINGAPORE) NOMINEES PTE LTD 108,524,218 1.9% 10 LAND AND HOUSE BANK PCL 92,000,000 1.6%
BTSGIF General Presentation Section IV: BTSGIF Performance Summary
Dividend policy: payout of not less than 90% of adjusted net profit1 p.a. (quarterly payment)
Return of capital: the Fund has excess liquidity (cash from amortisation of fund issuance costs (non-cash expense)) and reduce its registered capital (annual payment)
Distribution to unitholders (7.1% total yield in FY 15/16 and 6.2% total yield in FY 14/15)
Top 10 unitholders (30 May 2016)
Unitholders breakdown by type (30 May 2016)
DPU (THB)
Yield 2(%)
1Adjusted net profit = BTSGIF net profit less unrealised gain from the appraisal of assets and other adjustment items to be in line with the cash-basis of BTSGIF 2Yield = distribution per unit / capital (based on par of THB 10.800 in FY 13/14, new par of THB 10.723 in FY 14/15 and new par of THB 10.675 in FY 15/16) 3Presented on quarterly basis for comparison purpose only
5.6% 5.7% 6.5%
0.0
13
0.0
16
0.0
16
0.0
16
0.0
16
0.0
16
0.0
16
0.0
16
0.0
16
0.0
16
0.0
16
0.0
16
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
0.6%
Yield 2(%)
0.6% 0.6%
28
Page
I. Background of Infrastructure Funds (IFFs) 4
II. BTSGIF at a Glance 8
III. BTSGIF Investment Highlights 14
IV. BTSGIF Performance Summary 23
V. Conclusion 29
Appendix
Forecast of ridership, farebox revenue and net farebox revenue until FY29/30 31
Costs and additional investment projection 32
Transaction structure 33
Structure of Step-in Mechanism 34
IFFs liquidity comparison 35
BTSGIF income statement 36
BTSGIF total income from investment in NRTA 37
BTSGIF Balance Sheet 38
Initial assets and O&M business (BTSGIF’s call option) 39
Targeted lines by BTS Group 40
Contents
BTSGIF General Presentation
29
BTSGIF Conclusion
BTSGIF General Presentation Section V: Conclusions
Investment highlights
Delivering on Investors expectation • Yield through dividend payment and capital reduction • Tax benefit (exempt 10% income tax from dividend receipt for 10 years for individual)
Security • Creditor step-in rights • 1/3 of BTSC board membership are nominated by the Fund • BTSG pledges all of its BTSC shares (97.5%) to guarantee BTSC’s obligations
Sponsor alignment of interest • 1/3 holding by BTS Group • 10 years lock up until 2023
Growth Opportunities • Resilience ridership and flexibility to increase fare • Acquisition growth:-
Call option and RoFR for BTS existing and future lines (36.3km under BTS’s existing operating contracts and 294.1km future lines in next 5 years) Non-BTS infrastructure projects with strong cashflow potential
Ability to leverage • Leverage up to 3 times of equity
30
Page
I. Background of Infrastructure Funds (IFFs) 4
II. BTSGIF at a Glance 8
III. BTSGIF Investment Highlight 14
IV. BTSGIF Performance Summary 23
V. Conclusion 29
Appendix
Forecast of ridership, farebox revenue and net farebox revenue until FY29/30 31
Costs and additional investment projection 32
Transaction structure 33
Structure of Step-in Mechanism 34
IFFs liquidity comparison 35
BTSGIF income statement 36
BTSGIF total income from investment in NRTA 37
BTSGIF Balance Sheet 38
Initial assets and O&M business (BTSGIF’s call option) 39
Targeted lines by BTS Group 40
Contents
BTSGIF General Presentation
4.9%
13.1%
3.5% 6.5% -1.9% 23.8%
5.7% 19.4%
9.1% 9.1% 10.2% 6.6% 6.8% 8.2% 7.9% 7.5%
Net Farebox revenue growth (YoY)
5,6
77
5,8
74
6,3
97
6,9
47
7,5
53
7,9
71
8,7
47
9,1
30
10
,42
9
11
,21
6
12
,00
3
12
,79
0
13
,57
6
14
,46
6
15
,49
2
16
,55
2
11
,96
7
3,7
74
3,9
57
4,4
75
4,6
30
4,9
30
4,8
37
5,9
90
6,3
30
7,5
61
8,2
51
9,0
04
9,9
21
10
,57
1
11
,29
2
12
,22
1
13
,18
6
9,6
27
FY13/14A FY14/15A FY15/16A FY16/17F FY17/18F FY18/19F FY19/20F FY20/21F FY21/22F FY22/23F FY23/24F FY24/25F FY25/26F FY26/27F FY27/28F FY28/29F FY29/30F
Farebox revenue (THB mn) Net farebox revenue (THB mn)
5,6
46
31
BTSGIF Appendix: Forecast of ridership, farebox revenue and net farebox revenue until FY29/30
BTSGIF General Presentation Appendix: Forecast of ridership, farebox revenue and net farebox revenue until FY29/30
PROJECTED RIDERSHIP CAGR Ridership
(FY 13/14 – FY 29/30)
4.6%
CAGR Fare
(FY 13/14 – FY 29/30)
2.6%
CAGR FB Revenue
(FY 13/14 – FY 29/30)
7.3%
CAGR Net FB Revenue
(FY 13/14 – FY 29/30)
8.6%
PROJECTED FAREBOX REVENUE AND NET FAREBOX REVENUE
NOTE: FY 2016/17 to FY 2029/30 ridership and farebox revenue is based on MVA forecast and assumptions as of Apr 2016. FY 2013/14: farebox revenue is for full year of FY 2013/14, while net farebox revenue is for 17 April 2013 to 31 March 2014.
4,5
42
21
4.7
21
8.7
23
2.5
24
4.2
25
8.4
27
3.1
28
1.9
29
4.6
31
9.7
33
6.2
35
2.7
36
9.1
38
5.6
40
0.7
41
4.0
42
6.9
43
9.7
Ridership (mn trips)
1.9% 6.3% 5.0% 5.8% 5.7%
3.2% 4.5% 8.5%
5.2% 4.9% 4.7% 4.5% 3.9% 3.3% 3.1% 3.0%
YoY Growth (%)
32
BTSGIF Appendix: Costs and additional investment projection
BTSGIF General Presentation Appendix: Costs and additional investment projection
Key costs guidance
Costs and Additional Investment Projection
Source: Estimated by the Fund based on Infra Asia forecast and assumptions as of Apr 2016.
Unit: THB mn
*Maintenance expenses mainly composed of Siemens lump-sum contract (the contract term is from 1 Jan 2015 – 4 Dec 2029), expected THB 468mn p.a. (avg on a smooth basis) and the non-Siemens lump-sum contract (in-house P&C maintenance).
Source: Estimated by the Fund based on Infra Asia forecast and assumptions as of Apr 2016.
Normalised guidance p.a. (THB mn) from FY 16/17 to FY 28/29 (13 years)
% of total
OPEX 2,503 84%
Maintenance expenses* 862 29% Staff cost 738 25% Utilities expense 391 13% Others 512 17%
CAPEX 431 15%
Others 370 13%
Rolling stocks 61 2%
Additional Investment 24 1%
Total costs and additional investment 2,958 100%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
FY13/14A FY14/15A FY15/16A FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 FY29/30
OPEX CAPEX (others) CAPEX (rolling stocks) Additional Investment
33
BTSGIF At a Glance Appendix: Transaction structure
BTSGIF General Presentation Appendix: Transaction structure
Transaction Structure
BTSC is awarded a concession from BMA
• BTSC has rights to operate the system and to receive revenue from the core 23.5 km (in full) from providing services to the public.
• At the end concession, BTSC will need to transfer assets to BMA.
• BTSC also provides O&M service to BMA to operate extension part of sky-train and is thus entitled to receive O&M fee from BMA
BTSGIF purchases all future net revenue from BTSC until the end of concession
• BTSC continues to operate the system under the concession
• BTSC will transfer net revenue to BTSGIF (i.e. revenues less operating expenses and capital expenditure)
Conceptual Framework
BTSGIF is entitled to receive farebox revenue from BTSC, net of relevant operating cost and capital
expenditure
Net Revenue Operating Assets
BTSC owns assets (including new assets invested during BTSGIF life) and some assets to be
transferred to BMA at the end of concession
BTSGIF
Public Investors
66.7%
BTSG
BTSC
SkyTrain Business
33.3%
Receive Net Future Revenue
Transfer of
Future Net Revenue
Cash payment of purchase price
Other BTSG’s Businesses
Other BTSC’s Businesses
Key Protection Mechanism for BTSGIF Investor
Right to participate in corporate governance of BTSC
and its business
Protection 1
Contractual obligations / covenants on BTSC and BTSG
Protection 2
Step-in-mechanism
Protection 3
34
BTSGIF Performance Summary Appendix: Structure of Step-in Mechanism
BTSGIF General Presentation Appendix: Structure of Step-in Mechanism
BTSGIF BTSG
Share Sales and Purchase Agreement
• BTSGIF has its right to buy BTSC’ shares
• Exercisable upon EOD under the Net Revenue Purchase and
Transfer Agreement, e.g. breach agreement by either BTSG or
BTSC
Share Pledge
• BTSG pledges shares in BTSC to BTSGIF and share certificates
will be deposited with the Trustee
• Enforceable by BTSGIF upon breach of BTSG Undertaking or
BTSG Corporate Guarantee
BTSGIF can step-in in case of default under 1 or 2
2. Sponsor Support and Guarantee Agreement
• BTSG to maintain shareholding in BTSC and not to create any encumbrances over BTSC’s shares
• To vote for person nominated by BTSGIF to be BTSC board of director
• BTSG to pledge BTSC’s shares (97.5%) to guarantee obligations
• Guarantee BTSG’s obligation under the Net Revenue Purchase and Transfer Agreement (Liability to BTSGIF limited to the transfer or value of BTSC shares)
• BTSGIF has right to purchase and right of first refusal to invest in BTSG’s assets
BTSG BTSGIF
1. Net Revenue Purchase and Transfer Agreement
• BTSC to deliver net cash from the core BTS skytrain business to BTSGIF
• BTSGIF can propose to be BTSC’s board of director for 1/3
• Reserved matters shall be approved by at least 2 director representatives from the Fund
• BTSGIF approves the operating budget
• BTSGIF has right to purchase and right of first refusal to invest in BTSC’s assets
• Criteria for new borrowing and new investment of BTSC
BTSC BTSGIF
Agr
eem
ent
Step
-in
Mec
han
ism
0.0%
0.1%
0.1%
0.2%
0.2%
0.3%
0
20
40
60
80
100
120
140
160
180
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
Dec
-15
Jan
-16
Feb
-16
Mar
-16
Ap
r-1
6
May
-16
Avg daily turnover (THB mn)% Trading (avg daily turnover / mkt cap), RHS
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
Dec
-15
Jan
-16
Feb
-16
Mar
-16
Ap
r-1
6
May
-16
Avg daily turnover (THB mn)% Trading (avg daily turnover / mkt cap), RHS
0.0%
0.1%
0.1%
0.2%
0.2%
0.3%
0
10
20
30
40
50
60
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
Dec
-15
Jan
-16
Feb
-16
Mar
-16
Ap
r-1
6
May
-16
Avg daily turnover (THB mn)
% Trading (avg daily turnover / mkt cap), RHS
0.0%
0.1%
0.1%
0.2%
0.2%
0.3%
0.3%
0.4%
0
20
40
60
80
100
120
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
Dec
-15
Jan
-16
Feb
-16
Mar
-16
Ap
r-1
6
May
-16
Avg daily turnover (THB mn)% Trading (avg daily turnover / mkt cap), RHS
0.0%
0.1%
0.2%
0.3%
0.4%
0.5%
0
50
100
150
200
250
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
Dec
-15
Jan
-16
Feb
-16
Mar
-16
Ap
r-1
6
May
-16
Avg daily turnover (THB mn)% Trading (avg daily turnover / mkt cap), RHS
35
BTSGIF Appendix: IFFs liquidity comparison
BTSGIF General Presentation Appendix: IFFs liquidity comparison
BTSGIF JASIF EGATIF
DIF ABPIF
ADTV = 55.7 ADTV = 114.6
ADTV = 11.7
ADTV = 110.4
ADTV = 0.7
36
BTSGIF Appendix: BTSGIF Income Statement
(Unit: THB mn) FY 13/14
(17 Apr 13 - 31 Mar 14)
FY 14/15 (1 Apr 14 - 31 Mar 15)
FY 15/16 (1 Apr 15 - 31 Mar 16)
Income from investment in NRTA 3,773.8 3,957.2 4,475.3
Interest income 34.8 26.5 22.1
Total Income 3,808.6 3,983.7 4,497.4
Fund management fee and expenses 74.3 82.9 82.1
Amortisation of issuance costs 353.8 370.0 371.0
Other expenses 27.5 11.1 23.8
Total Expenses 455.6 464.0 476.9
Net Investment Income 3,353.0 3,519.7 4,050.5
Total Unrealised Gain on Investments 1,701.0 910.0 1,390.0
Increase in Net Assets resulting from Operations 5,054.0 4,429.7 5,410.5
THB/Unit THB/Unit THB/Unit
Net income available to the unitholders (to be paid as dividend)
3,353.0 0.579 3,519.7 0.608 4,020.5 0.694
Add back: excess liquidity due to amortisation of issuance cost (to be paid as capital reduction in the future)
353.8 0.061 370.0 0.064 371.0 0.064
Total distribution available to unitholders 3,706.8 0.640 3,889.7 0.672 4,391.5 0.758
Implied Annual Distributable Yield (Based on par value of THB 10.80 for FY13/14, THB 10.723 for FY14/15 and THB 10.675 for 9M 15/16, # actual days)
6.2% 6.3% 7.1%
BTSGIF General Presentation Appendix: BTSGIF income statement by quarter
(Unit: THB mn) FY 13/14
(17 Apr 13 - 31 Mar 14) FY 14/15
(1 Apr 14 - 31 Mar 15) FY 15/16
(1 Apr 15- 31 Mar 16)
Farebox revenues 5,469.6 5,874.1 6,397.1
Total expenses 1,695.8 1,916.9 1,921.8
Cost of farebox revenues 1,229.5 1,273.5 1,256.9
Selling expenses 83.7 73.3 75.1
Administrative expenses 307.3 363.3 369.8
Capital expenditures 75.3 206.8 220.0
Total income from investment in NRTA 3,773.8 3,957.2 4,475.3
37
BTSGIF Appendix: BTSGIF total income from investment in NRTA
BTSGIF General Presentation Appendix: BTSGIF total income from investment in NRTA
38
BTSGIF Appendix: BTSGIF Balance Sheet
(Unit : THB mn) 31 Mar 2014 31 Mar 2015 31 Mar 2016
Investment in NRTA 63,100.0 64,010.0 65,400.0
Investment in Securities and Cash 1,323.0 1,335.2 1,412.9
Other Assets 761.4 393.9 23.0
Total Assets 65,184.4 65,739.1 66,835.9
Total Liabilities 79.9 250.7 52.3
Net Asset Value 65,104.5 65,488.4 66,783.6
Capital Received from Unitholders 62,510.4 62,064.7 61,786.9
Retained Earnings 2,594.1 3,423.7 4,996.7
NAV per Unit (THB) 11.2481 11.3145 11.5382
BTSGIF General Presentation Appendix: BTSGIF Balance Sheet
39
BTSGIF Appendix: Initial assets and O&M business (BTSGIF’s call option)
BTSGIF General Presentation Appendix: Initial assets and O&M business (BTSGIF’s call option)
30-year concession (ending 4 Dec 2029) to exclusively collect ridership fare (and bear related expenses and capital expenditure)
23 stations over 23.5 km in CBD: Connecting Bangkok’s most important business and tourist destinations
All investments made by BTSC: Including civil works, E&M and trains (except land acquisition) from private sector sources
No revenue sharing or concession fees for BMA
BTSC to receive pre-determined annual O&M fee for the operation and maintenance of the system
Green line extension (30 years to 2 May 2042)
o Sukhumvit Extension (On Nut – Bearing)
o Silom Extension (Saphan Taksin – Bang Wa)
Core SkyTrain System after concession expires
DARK GREEN MO CHIT – ON NUT 17.0km
LIGHT GREEN NATIONAL STADIUM – SAPHAN TAKSIN 6.5km
SILOM EXTENSION Saphan Taksin – Bang Wa 7.5km
SUKHUMVIT EXTENSION On Nut – Bearing
5.3 km
CORE NETWORK
Core BTS SkyTrain system (Initial asset) O&M Business (Call Option)
LINE ROUTE AUTHORISING
BODY OPERATE YEAR
CONSTRUCTION PROGRESS
DISTANCE (KM)
PURPLE BANG YAI - BANG SUE MRTA 2016 UNDER CONSTRUCTION 23.0
BLUE HUA LAMPHONG - BANG KHAE MRTA 2017 UNDER CONSTRUCTION 14.0
BLUE BANG SUE - THA PRA MRTA 2017 UNDER CONSTRUCTION 13.0
DARK RED BANG SUE - RANGSIT SRT 2017 UNDER CONSTRUCTION 26.3
DARK GREEN SOUTH
BEARING - SAMUT PRAKARN MRTA 2019 UNDER CONSTRUCTION 12.8
DARK GREEN NORTH
MO CHIT – SAPHAN MAI – KHU KHOT MRTA 2020 UNDER CONSTRUCTION 18.4
LIGHT GREEN BANG WA - BOROMMARATCHACHONNANI BMA 2019 7.0
LRT BANG NA - SUVARNABHUMI BMA 2019 18.3
GREY (PHASE I) WATCHARAPHON – THONG LO BMA 2019 16.3
PINK KHAE RAI – PAK GRED – MIN BURI MRTA 2020 – 2021 36.0
DARK GREEN SAMUT PRAKARN - BANGPU MRTA 2018 7.0
YELLOW LAD PRAO – SAM RONG MRTA 2019 30.4
ORANGE TALING CHAN – MIN BURI MRTA 2019 39.8
LIGHT RED BANG SUE - PHAYATHAI – MAKKASAN SRT 2019 9.0
LIGHT RED MAKKASAN – HUA MARK SRT 2019 10.0
DARK RED RANGSIT – THAMMASART UNIVERSITY SRT 2018 10.0
DARK RED BANG SUE - HUA LAMPHONG SRT 2018 6.5
TOTAL (KM) 297.8
40
BTSGIF Appendix: Targeted lines by BTS Group
BTSGIF General Presentation Appendix: Targeted lines by BTS Group
108.8km
108.8KM OF 6 TARGETED LINES BY BTS GROUP, 107.5KM UNDER CONSTRUCTION
CORE AND EXTENTION TO BTS CURRENT LINES LINES CONNECTING TO BTS LINES
41
BTSGIF Appendix: Targeted lines by BTS Group
BTSGIF General Presentation Appendix: Targeted lines by BTS Group
BTSG is WELL-POSITIONED FOR NEW CONTRACTS
Relevant expertise Financial strength Green line advantage
New contracts are expected to be on a ‘PPP GROSS COST BASIS’
Operator to invest in E&M works with repayment
from government Operator given operation contract Variations will be considered
PINK LINE • Khae Rai – Min Buri (36.0km) • Expected turnkey bidding: 2016 • Target operation: 2020 – 2021
DARK GREEN NORTH LINE • Mo Chit – Saphan Mai – Khu Khot (18.4km) • Civil works progress: 8% (as of May 2016) • Expected O&M award: mid 2016 • Target operation: 2020
GREY LINE • Watcharaphol – Rama 9 Bridge (26.0km) • Awaiting EIA approval • Expected bidding (Phase I): late 2016 • Target operation (Phase I): 2019
Phase I: Watcharaphol – Thong Lo (16.3km)
LIGHT RAIL TRANSIT (LRT) • Bang Na – Suvarnabhumi (18.3km) • Expected bidding: 2016 • Target operation: 2019
DARK GREEN SOUTH LINE • Bearing – Samut Prakarn (12.8km) • Civil works progress: 87% (as of May 2016) • Expected O&M award: mid 2016 • Target operation: late 2019
Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, Ministry of Transport
LIGHT GREEN LINE • Bang Wa – Borommaratchachonnani (7.0km) • Expected O&M award: 2017 • Target operation: 2019