Investor Relations Quarterly Review: Issue 11 by Phantipa Kwanmuang

Investor Relations Quarterly Review: Issue 11

BTS Group Holdings Plc st

3Q 12/13

(3 months ending 31 Dec 2012) (Ended June 2010)

AT A GLANCE

FROM THE EDITOR

Share InformationA

Dear Investment Community, 11,022.8mn sharesG 57.3% THB 4.0 / ShareF THB 85.9bn/ USD 2.88bnB THB 1,267.1mn/ USD 42.2mnB

Shares Outstanding Free FloatE Par Value Market Capitalisation YTD daily traded valueD Stock Identifiers Stock Exchange Symbol Bloomberg / Reuters Bond Identifiers

BTS BTS TB / BTS.BK ISIN XS0580087376 Gross Profit by Business UnitC

Revenue by Business Unit Services 0.6%

Property 15.8%

Property 37.5%

Mass transit 43.2%

7.3% 0.0% Media 27.5%

25.1%

67.6%

In 3Q 12/13 BTS Group achieved a net profit of THB 1,088.4mn. Group operating revenue surpassed previous records supported by a new record in quarterly ridership of 50.3mn passengers. Further, on February 8th 2013 BTS paid an interim dividend of THB 1,371.6mn (equivalent to THB 0.163 per share) which is the highest dividend that the Company has paid in its history and demonstrates the strengthening cash flows of the Group. The company has a policy to pay dividends at no less than 50% of net profit and aims to pay on a twice-yearly basis.

35.3% Mass transit Services 56.1% 0.0%

42.3%

3Q 11/12

0.0%

3Q 11/12

59.4% 3Q 12/13

3Q 12/13

Media 60.3%

Source: Company A

BTS last 12 months Share Price Performance : 9.00

3,500 BTS TURNOVER (RHS)

BTS Share Price (LHS)

SET Index (Indexed vs BTS YTD)

8.00

3,000

2,500

THB / Share

6.00 5.00

2,000

4.00

1,500

3.00 1,000

2.00 500

1.00 -

Equity MarketsH BTS TB SET Transport Index SET Index NIKKEI 225 HANG SENG FTSE 100 S&P 500 Currency MarketsH USD vs THB EUR vs THB THB vs JPY THB vs HKD THB vs SGD THB vs GBP

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3 MO

6 MO

12 MO

36.44% 26.99% 15.05% 22.64% 5.19% 7.57% 5.54%

53.33% 45.41% 25.54% 29.13% 17.71% 8.53% 7.53%

86.67% 58.08% 36.80% 25.08% 11.52% 6.44% 11.21%

3 MO

6 MO

12 MO

3.56% -2.09% -16.36% -3.45% -4.10% -4.80%

5.71% -3.13% -20.15% -5.37% -4.82% -4.51%

2.82% 0.24% -9.00% -2.76% -3.86% -5.69%

BTS Daily Turnover Value (THB mn)

7.00

The rail mass transit network expansion continues and in February, Bangkok Mass Transit System Public Company Limited (“BTSC”) and the Bangkok Metropolitan Administration (“BMA”) commenced trial operations of the Silom line extension from Wongwian Yai (S8) to Talat Phlu (S10) in January and February 2013, respectively. The remaining 2 stations namely, Wutthakat (S11) and Bang Wa (S12) are expected to be operational by end 2013. In parallel, the Group continues to advance its capacity expansion programme. Currently, BTSC has already added new 13 carriages into service on the Sukhumvit line. We expect all trains on the Sukhumvit line to be 4-car trains by end FY 12/13. For 4Q 12/13, we expect the ridership growth trend to continue and expect that we will achieve the lower end of our full year 12% 15% target range for fiscal year ridership growth in spite of a delay in the trial operating of Silom line extension due to flooding in 2011. Within our Media business, the outstanding growth in BTS-related revenue and non BTS-related revenue (including In-store and office buildings revenue) for the past three quarters puts us on track to achieve the fiscal year target of 40% media revenue growth. We have also revised upwards our FY 13/14 guidance to expect media revenue to grow by approximately 30% compared to FY 12/13E, with the growth coming from both mass transit media (additional rolling stock advertising space, increased occupancy at non-prime stations, price increases) and in-store media (increase in modern trade media occupancy and consequent increase in efficiency, expansion of 10 office buildings). During the quarter, there has been certain allegations made by the Department of Special Investigation against the executives of the BMA, Krungthep Thanakom (KT) and its executives, BTSC and certain of its executives in relation to the award of the 30 year operation and maintenance contract and the Company made an announcement via the stock exchange on this matter on January 10th, 2013 that articulates the Company firm belief that BMA and KT have followed and fulfilled all the legal requirements on this contract. The Company continues to co-operate fully with any authorities on this matter and looks forward to a speedy resolution. On December 18th 2012, the Company’s Shareholders approved the sale of future Net Farebox Revenue from the Core BTS SkyTrain network to an Infrastructure Fund (IF) subject to certain conditions. IFs are tax-exempt vehicles, part of a Government initiative to encourage the development of Thailand’s infrastructure and enable a broader investor to access to infrastructure investment. The Company believes that the successful completion of the transaction and any consequent investment in the mass transit network is in line with the Governments broader ambition to develop Bangkok’s rail mass transit network, will lead to improved service and convenience for Bangkok’s residents as well as serve to deliver improved shareholder value. Yours faithfully,

Daniel Ross Financial Director

Investor Relations Quarterly Review: Issue 11

BTS Group Holdings Plc st

3Q 12/13

(3 months ending 31 Dec 2012) (Ended June 2010)

BTS GROUP FINANCIAL SUMMARY (CONSOLIDATED) Income Statement (THB mn)

3Q 12/13

3Q 11/12

% YoY

2Q 12/13

% QoQ

2,725.1 49.7 2,774.8 1,460.7 458.8 1.9 1,959.8 1,309.6 231.4 646.0 1,271.9 99.6 83.8 1,088.4 0.1038

1,991.4 86.3 2,077.6 1,074.8 313.9 0.4 1,123.9 1,069.1 357.4 53.5 385.4 37.3 19.3 328.8 0.0359

36.8% -42.4% 33.6% 35.9% 46.2% 426.2% 74.4% 22.5% -35.3% 1107.3% 230.0% 167.0% 333.6% 231.1% 188.8%

2,434.4 35.8 2,470.2 1,178.9 395.1 0.9 1,634.7 1,328.9 378.2 300.9 819.8 87.6 41.1 691.2 0.0744

11.9% 38.8% 12.3% 23.9% 16.1% 118.6% 19.9% -1.5% -38.8% 114.7% 55.1% 13.8% 104.0% 57.5% 39.4%

Balance Sheet (THB mn)

31 Dec 12

31 Mar 12

%Change

Cash and cash equivalents Trade and other receivables Real estate development costs Other current assets Total current assets Elevated project costs Land and project under development Investment properties

2,516.5 968.1 3,737.5 1,060.3 8,282.3 44,496.2 2,816.0

1,333.2 1,106.7 3,349.1 2,078.7 7,867.7 45,144.2 2,676.3 2,461.0

88.7% -12.5% 11.6% -49.0% 5.3% -1.4% -100.0% 14.4%

Property, plant and equipment Other non-current assets Total non-current assets Total assets Short-term loan from financial institution Account Payable Current portion of long-term loan Current portion of long-term debentures Other current liabilities Total current liabilities Long-term loan - net of current portion Long-term debenture - net of current portion Convertible debentures - liability component Other non-current liabilities Total non-current liabilities Total liabilities Registered capital at Par THB 1 each Issued and fully paid capital at Par THB 0.64 each Share premium (discount) Retained earnings Other shareholders' equity Equity attributable to company's shareholders Non-controlling interest - equity attributable to minority Total shareholders' equity Total liabilities and shareholders' equity

6,378.1

6,039.2

5.6%

3,317.1 57,007.5 65,289.8 50.0 1,540.8 2,494.9 2,015.7 6,101.4 2,563.8 6,966.1 796.4 558.6 10,884.9 16,986.3 10,925.3 43,701.3 (1,989.1) (2,800.2) 7,588.6 46,500.6

2,700.5 59,021.2 66,888.9 1,941.5 1,452.4 583.4 2,495.8 1,864.9 8,338.0 2,934.0 9,443.8 8,648.3 592.5 21,618.6 29,956.6 74,815.3 36,600.5 350.7 -2,032.6 371.2 35,289.8

22.8% -3.4% -2.4% -97.4% 6.1% -100.0% 0.0% 8.1% -26.8% -12.6% -26.2% -90.8% -5.7% -49.7% -43.3% -85.4% 19.4% -667.1% N.A. 1944.6% 31.8%

1,802.8 48,303.4 65,289.8

1,642.5 36,932.3 66,888.9

9.8% 30.8% -2.4%

Operating revenue Other recurring income Total recurring revenue Operating costs Selling and Administrative expenses Income (loss) from investment in associates EBITDA Operating EBITDA Finance cost Non-operating gain (loss) 1 EBT Income tax Minority interests Net income (loss) to equity holders of the parent EPS (THB per share) 2

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NOTE: 1 Non operating gain / (loss) for 3Q 12/13 mainly related to gain from sale of Land at Nana (THB 710.7mn)

2 Calculated based on weighted average number of ordinary shares at new par value (THB 4.0 per share)

Investor Relations Quarterly Review: Issue 11

BTS Group Holdings Plc st

3Q 12/13

(3 months ending 31 Dec 2012) (Ended June 2010)

BTS GROUP FINANCIAL SUMMARY (CONSOLIDATED) Cash Flow Statement (THB mn) Income (loss) before tax Adjustment to reconcile income (loss) before tax: Depreciation and amortisation Spare parts and elevated project costs amortisation Other adjustments Decrease (Increase) in operating assets Increase (Decrease) in operating liabilities Cash paid for interest expenses Cash paid for corporate income tax Cash received for interest income Net cash from (used in) operating activities Increase in elevated rail project costs Increase (Decrease) in advances for asset acquisitions Cash paid for purchases of property, plant and equipment Cash paid for purchase of land & project awaiting development Cash paid for intangible assets Rights of claim from acquisition of debts per rehabilitation plan Cash received from disposal of land Cash received from sales of investments in subsidiaries Cash paid for purchase of investment in subsidiaries Cash paid for purchases of other long-term investments Cash received from issuance of additional shares of sub subsidiary Others Net cash used in investing activities Cash paid for short-term loan from financial institution Increase in short-term loan from financial institution Increase in long-term loans Cash paid for long-term loans Cash paid for long-term debentures Dividend paid Others Net cash from (used in) financial activities Increase in translation adjustment Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at the end of the period

Key financial ratios Profitability ratios Gross operating profit margin (%) Selling and administrative expenses to operating sales ratio (%) EBITDA margin (%)A Operating EBITDA margin (%)B Accounting net profit margin (%)A Operating net profit margin (%)B ROA (%)C ROE (%)C

3Q 12/13

3Q 11/12

% YoY

2Q 12/13

1,271.9

385.4

230.0%

819.8

55.1%

106.8 349.8 (486.9) 1,134.8 (108.0) (196.7) (196.7) 12.7 1,887.7 (75.3) (45.0) (230.9) (5.5) 5,428.1 (461.9) (200.0) 882.1 (1,594.3) 3,697.3 (2,129.3) (1,184.5) (2,500.0) (0.1) 1,816.4 (3,997.5) 1.7 1,589.1 927.4 2,516.5

72.2 308.9 370.2 (470.0) 88.7 (175.8) (41.3) 3.0 541.4 (132.7) (458.4) (201.1) (3.1) (5.3) (741.5) 35.4 (1,506.7) 441.5 542.2 (2.1) (0.0) 305.7 1,287.3 0.3 322.3 1,052.3 1,374.6

47.8% 13.3% -231.5% N.A. -221.7% N.A. N.A. 328.7% 248.7% N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. -4604.2% N.A. N.A. -582.3% -318.5% N.A. N.A. N.A. 494.2% -410.5% 421.5% 393.0% -11.9% 83.1%

95.5 341.1 88.8 320.3 (60.7) (309.4) (115.6) 6.1 1,185.9 (125.7) (122.5) (2.9) (74.6) 1,505.9 31.7 1,211.8 1,301.6 166.2 (2,354.2) (1,371.5) (277.2) (2,535.0) (0.1) (137.4) 1,064.8 927.4

11.7% 2.5% -649.2% 254.3% N.A. N.A. N.A. 106.5% 59.2% N.A. -100.0% N.A. N.A. N.A. N.A. -100.0% N.A. N.A. N.A. N.A. -5132.1% 205.1% N.A. N.A. -100.0% N.A. N.A. N.A. N.A. N.A. N.A. N.A. -12.9% 171.4%

3Q 12/13

3Q 11/12

2Q 12/13

46.4% 16.8% 56.1% 48.1% 31.2% 15.9% 4.0% 5.4%

46.0% 15.8% 52.7% 53.7% 15.4% 13.2% 2.6% 4.7%

51.6% 16.2% 59.0% 54.6% 24.9% 15.8% 2.7% 4.6%

NOTE

% QoQ

NOTE: A

Includes non-recurring items

Excludes non-recurring items

Calculated based on ‘last-12month accounting net profit (incl. MI)’ D

Calculated based on ‘last-12month operating EBITDA’ E

Operating EBITDA divided by finance cost (period only)

Leverage ratios Total liability to total asset (times) Total liability to total equity (times) Net debt to equity (times) Net debt to operating EBITDA (times)D Interest coverage (times)E

0.26x 0.35x 0.21x 2.07x 5.66x

0.43x 0.77x 0.62x 6.26x 2.99x

0.41x 0.68x 0.55x 4.54x 3.51x

Per share ratios F Earnings per share (THB) Operating cash flow per share (THB) Free cash flow per share (THB) Enterprise value per share (THB) Book value per share (THB)

0.1038 0.157 0.144 8.16 4.03

0.0359 0.059 -0.009 7.15 4.15

0.0744 0.123 0.129 8.06 4.03

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Calculated based on weighted average number of ordinary shares at new par value (THB 4.0 per share)

Investor Relations Quarterly Review: Issue 11

BTS Group Holdings Plc st

3Q 12/13

(3 months ending 31 Dec 2012) (Ended June 2010)

Financial Highlights       

Total operating revenue of THB 2,725.1mn in 3Q 12/13, representing an increase of 36.8% YoY 1 Operating EBITDA in 3Q 12/13 grew 22.5% YoY to THB 1,309.6mn Mass transit business unit revenue in 3Q 12/13 increased 13.7% YoY to THB 1,529.4mn 15.7% YoY growth in total quarterly ridership to 50.3mn passengers in 3Q 12/13 – a new quarterly record Media revenue grew 49.7% YoY, reaching THB 749.2mn in 3Q 12/13 Property revenue increased significantly YoY to THB 2,278.7mn Profit attributable to the equity holders of the Company, increasing 231.1% YoY to THB 1,088.4mn

Quarterly Performance – 3Q 12/13 BTS Group Holdings Public Company Limited (“BTSG” or the “Company”) and subsidiaries (together, the “Group”) recorded consolidated total revenue of THB 3,492.4mn in 3Q 12/13. This represented a significant increase of 63.9% (or THB 1,361.2mn) from THB 2,131.1mn in 3Q 11/12. The increase was primarily due to both stronger operating performance and a non-recurring revenue from gain on sale of investment in subsidiary (Nana). Operating revenue also grew 36.8% YoY to THB 2,725.1mn. The increase in operating revenues was on account of the improved performance from the Mass Transit, Media, and Property business sectors (see segmental performance for more details). Revenues from the Mass Transit, Media, Property and Services businesses accounted for 56.1%, 27.5%, 15.8% and 0.6% of total operating revenue, respectively. Operating 2 Revenue (THB mn) Mass Transit Media

Services TOTAL

% of Total

3Q 11/12

% Change (YoY)

2Q 12/13

% Change (QoQ)

3Q 12/13 margin

margin

3Q 11/12

1,529.4

56.1%

1,345.5

13.7%

1,507.4

1.5%

43.2%

42.3%

749.2

27.5%

500.6

49.7%

724.7

3.4%

60.3%

59.4%

429.5

15.8%

145.3

195.5%

194.2

121.2%

37.5%

35.3%

17.0

0.6%

N/A

8.1

109.6%

N/A

2,725.1

100.0%

1,991.4

36.8%

2,434.4

11.9%

46.4%

46.0%

Property

3Q 12/13

Operating EBITDA excludes non-recurring items

Total operating revenue for 3Q 12/13 excludes other income of THB 767.2mn (3Q 11/12 THB 139.8mn) from interest income, revenue from court-ordered compensation, gain on sale of investment in subsidiary, gain (loss) on exchange, and others 3

Mass Transit revenues include Fare box revenue as well as Service Income from Train Operation Management. Property includes Sales from Real Estate, Rental and Service Income, Construction & Services Businesses and Service income related to Thana City Golf & Sports Club Co,. Ltd. Note that income related to Thana City Golf & Sports Club Co., Ltd. was reclassified from Services Business to Property business in 4Q 11/12. 4

Operating gross profit margin

Although total expenses rose by 43.4% YoY to THB 1,991.1mn mainly due to cost of Abstracts Phahonyothin Park Condominium units sold and transferred, the Group demonstrated a strong operating performance with its operating gross profit margin increasing to 46.4% from 46.0% in the previous year as a result of operating leverage in the Mass Transit, Media and Property businesses. Despite the fact that SG&A expenses increased 72.0% YoY or by THB 220.5mn to THB 526.8mn (mainly due to the increase in Mass Transit, Media and Property SG&A expenses), operating EBITDA improved by 22.5% YoY to THB 1,309.6mn. Finance costs decreased YoY by 35.3% or THB 126.0mn (38.8% or THB 146.8mn decrease QoQ) to THB 231.4mn. The reduction was mainly due to debt reduction, specifically from continued conversion of BTSG convertible bonds, maturity of the first tranche of BTSC Debenture (THB 2,500.0mn in Aug 2012) as well as other debt repayment. This resulted in a healthier net recurring profit, which increased by 78.2% YoY to THB 524.3mn. All these taken into account, the Group reported consolidated profit for the 3 month period of THB 1,172.2mn (a 236.7% increase from net profit of THB 348.1mn in 3Q 11/12) and profit attributable to the equity holders of the Company at THB 1,088.4mn (an increase of THB 759.6mn compared to 3Q 11/12).

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Investor Relations Quarterly Review: Issue 11

BTS Group Holdings Plc st

3Q 12/13

(3 months ending 31 Dec 2012) (Ended June 2010)

Balance Sheet and Cash Flow Total assets as of 31 December 2012 stood at THB 65,289.8mn, a 2.4% decrease from 31 March 2012 as BTS Group used cash proceeds from land sales to repay debt. Total liabilities decreased from 31 March 2012 by 43.3% or THB 12,970.3mn to stand at THB 16,986.3mn largely due to the continuing conversion of BTSG convertible bonds (THB 7,851.9mn), the first tranche repayment of BTSC debenture (THB 2,500.0mn) in Aug 2012, as well as repayment of bank loans (THB 2,845.0mn). On the equity side, total equity increased by THB 11,371.2mn or 30.8% to THB 48,303.4mn. This increase was attributable to i) increase in paid-up capital to THB 43,701.3mn resulting from additional 1,775.2mn ordinary shares issued from the conversion of convertible bonds which brought outstanding shares to increase to 10,925.3mn shares; and ii) surplus from sale of investment in subsidiary (VGI). Note that the gain on sale of VGI shares was recorded in the consolidated balance sheet as equity under ‘surplus from the changes in the ownership interests in subsidiaries’ but not recorded in the profit & loss account, as the changes in the Company's ownership interest in a subsidiary do not result in a loss of control. For the nine-months ended 31 December 2012, net cash provided from operating activities was at THB 3,321.3mn compared to THB 1,292.1mn in the previous year. Key contributors of the increase were improved profit and a reduction in accrued income following receipt of payment from the Treasury Department and a reduction in O&M receivable. Net cash generated from investing activities stood at THB 4,665.8mn. Key items were proceeds from the sale of investment in subsidiaries (Kamala, Nana, and VGI). Net cash used in financing activities was at THB 6,805.7mn mainly from debt repayment and dividend payment. As a result, the consolidated cash flow statements showed an increase of THB 1,183.2mn in cash and cash equivalents to THB 2,516.5mn from the previous year of THB 1,333.2mn.

SEGMENTAL PERFORMANCE

MASS TRANSIT Total quarterly ridership grew 15.7% YoY to 50.3mn passengers in 3Q 12/13 (representing a new record in BTSC’s operational history) as a result of additional passengers from the Sukhumvit line extension (On nut – Bearing, opened in August 2011), continued organic growth, and a lower base in 3Q 11/12 in relation to the flooding in the Bangkok metropolitan area during October to November 2011. Quarterly ridership rose by 1.9% QoQ from the previous record of 49.4mn as organic growth was able to offset what is normally a seasonal decline. Average weekday ridership also reached a new record (608,564 passengers per weekday) in 3Q 12/13, which followed a similar trend with an increase of 14.5% YoY and 2.6% QoQ.

Total Ridership Average weekday ridership Average Fare (THB / trip)

3Q 12/13

3Q 11/12

YoY

2Q 12/13

QoQ

50,309,901

43,466,123

15.7%

49,373,095

1.9%

608,564

531,527

14.5%

593,426

2.6%

25.0

24.8

4.0%

25.1

2.4%

Historical Monthly Ridership

15.7%

17.7%

9.4%

9.6%

Percentage Change YoY

48 46

-20%

-40%

586,743

14.5%

17.7%

608,564

9.6% 593,426

581,866

531,527

Percentage Change YoY

10.4%

Passengers (millions)

19.8%

20%

Passengers / weekday

22.1%

Historical Average Weekday Ridership

-60%

-80% 3Q 11/12

4Q 11/12

Quarterly ridership

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1Q 12/13

2Q 12/13

3Q 12/13

Passenger growth (YoY) (RHS)

3Q 11/12

4Q 11/12

1Q 12/13

Average weekday ridership

2Q 12/13

3Q 12/13

Passenger growth (YoY) (RHS)

Investor Relations Quarterly Review: Issue 11

BTS Group Holdings Plc st

3Q 12/13

(3 months ending 31 Dec 2012) (Ended June 2010)

The above performance was reflected in 3Q 12/13 Mass Transit revenues, which saw 13.7% growth or THB 183.9mn YoY to THB 1,529.4mn. One of the reasons for the significant increase was from the operating performance in 3Q 11/12 which was negatively impacted by the floods. Beyond that, the increase in Mass Transit revenue was in line with the 15.7% growth in ridership. Average fare was steady at THB 25.0 (THB 24.8 per trip in 3Q 11/12). Cost of Mass transit revenue increased 11.8% or THB 91.7mn YoY in line with higher ridership and a lower base in 3Q 11/12 in relation to the flooding impact. Key cost items were higher depreciation recorded (from higher ridership, new signaling system and new trains) and employee costs which mainly rose from the indirect impact of the increased minimum wage. As a result of the lack of other recurring income from subcontract work which recorded in 3Q 11/12, the operating EBITDA margin of the Mass Transit business fell to 60.4% (64.4% in 3Q 11/12).

MEDIA The Groupâ&#x20AC;&#x2122;s Media business had another strong quarter as revenue increased 49.7% or THB 248.7mn YoY (3.4% or THB 24.5mn QoQ) to THB 749.2mn across its business segments. BTS-related media revenue was THB 369.4mn, representing growth of 23.9% or THB 71.2mn YoY. The growth in BTS-related revenue came from i) the 12 additional 4-car trains, which led to an increase in capacity of train body, in-train static and digital media; ii) the increase in occupancy in static and digital advertising areas on BTS stations; and iii) a price and occupancy increase in merchandising space. The main reason for the QoQ revenue increase of 2.1% or THB 7.4mn was due to growth of in-train digital media and a price increase of merchandising space. Revenue from Modern Trade media reached THB 333.1mn, representing growth of 82.9% or 151.0mn YoY largely due to higher revenue from additional contracts signed with Tesco Lotus and Big C in sales floor areas, and a lower base in 3Q 11/12 in relation to the aforementioned flood. Revenue improved by 7.2% or THB 22.4mn QoQ, which can be attributed to seasonality. Office Building & other media revenue reached THB 46.8mn, representing growth of 130.6% or THB 26.5mn YoY. The increase was driven by the additional rights secured for advertising media in 4 office buildings, the adjustment in sales strategy by bundling Office Building media with BTS-related media, and a new contract to advertise in Chulalongkorn Universityâ&#x20AC;&#x2122;s bus system. Cost of revenue increased 46.2% or THB 94.0mn YoY (3.9% or THB 11.1mn QoQ) to THB 297.3mn with the increase attributable to the increased cost of concession paid in the growing modern trade business. Media SG&A increased 37.7% or THB 27.1mn YoY to THB 99.0mn as a result of increased salary and marketing expenses. In 3Q 12/13, although the revenue proportion of Modern Trade media (which has lower margin) was greater than that of the same period in the previous year, an increase in efficiency, along with economies of scale across the board, caused the operating EBITDA margin of the Media business to improve from 51.3% in 3Q 11/12 to stand at 52.7%.

Contribution of Revenue (Media business) Office buildings

Modern trade 4%

36%

44%

60%

49%

3Q 12/13

3Q 11/12

Profit Margin (Media business)

BTS related revenue

3Q 12/13

43%

Operating gross profit margin 5 (overall) Operating EBITDA margin (overall)

3Q 11/12

2Q 12/13

60.3%

59.4%

60.5%

52.7%

51.3%

52.5%

50%

2Q 12/13

Operating gross profit margin excludes the cost of concession payable to BTSC

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Investor Relations Quarterly Review: Issue 11

BTS Group Holdings Plc st

3Q 12/13

(3 months ending 31 Dec 2012) (Ended June 2010)

PROPERTY AND SERVICES Property revenue increased significantly by THB 2,133.4mn YoY to THB 2,278.7mn. The increase was attributable to both non-recurring revenue from the disposal of the Group’s entire investment in Kampoo Property Company Limited (land plot next to Nana BTS SkyTrain station) for THB 1,849.2mn as well as an improvement in operating revenue. Property operating revenue increased by THB 284.2mn YoY to THB 429.5mn. The increase in operating performance was primarily driven by i) revenue in relation to 55 units transferred from Abstracts Phahonyothin Park (started transferring in Dec 2012); and ii) revenue from Eastin Grand Hotel operations at Surasak BTS SkyTrain station which had its grand opening in Oct 2012. Operating costs rose at a lower rate than operating revenues. An increase of THB 174.4mn YoY to THB 268.4mn was mainly from costs from transferred units of Abstracts Phahonyothin Park and the newly completed Eastin Grand Hotel. Property SG&A expenses increased by THB 63.4mn or 71.4% YoY mainly driven by expenses related to transfers from Abstracts Phahonyothin Park, including transfer fee, marketing expenses, sales commission and depreciation expenses of Eastin Grand Hotel. Due to the improvement in operating performances, coupled with the aforementioned sale of land at Nana, this resulted in a positive EBIT margin of 31.9% in this quarter. Presold units as of Dec 2012 (Tower A)

Project Summary Type: Mid-High End Condominium Location: Phahonyothin Road, North Bangkok. 250m from new BTS station Site area : 33,420sqm (20-3-55 rai)

Presold units 73%

#Units

Average selling price/sqm (between Oct – Dec 2012)

THB

Available units 27%

77,642

Tower A Tower B Tower C Total

Presold units as of Dec 2012

Average selling price/sqm (between Oct – Dec 2012)

THB

Presold units 84%

1,012 1,012 1,012 3,036

GFA (sqm) 62,091 62,091 62,091 189,273

NFA (sqm) 42,818 42,818 42,818 128,455

Project summary

Available units 16%

Type: Mid-High End Condominium Location : Sukhumvit Soi 66/1, East Bangkok. 250m from new BTS Udomsuk Site area: 3,160sqm. (1-3-90 rai)

#Units Bldg A Bldg B Bldg C Bldg D Total

72,536 Construction model and progress

100% Completed

28 28 28 28 112

GFA (sqm)

NFA (sqm)

2,270 2,270 2,270 2,270 9,082

1,250 1,250 1,250 1,250 5,000

Project summary Type: Four Star Hotel Location : Sathorn Road, Direct access to BTS Surasak Site area : 3,828sqm (2-1-57 rai) Construction completed: Apr 2012 Soft Opening: May 2012 Official Launch: Oct 2012

Our Services business saw 3Q 12/13 revenues increase by THB 8.9mn QoQ to THB 17.0mn. This increase was primarily due to the increase of revenue in HHT construction services, coupled with the continuance of Rabbit cards sale (common ticketing cards for Bangkok’s mass transit network and retail e-payment card). There was also THB 26.7mn cost of revenue as well as THB 26.2mn SG&A expenses related to the establishment of the Rabbit card and Carrot Rewards programme. Absolute Hotel Services Co., Ltd (AHS) continued with the acquisition of 3 new management contracts under the Eastin and U Hotels & Resorts brand regionally as follows: i) U Hang Chuoi Hanoi, Vietnam (opening in 2013); ii) U Lonavala (opening in 2013); and iii) Eastin Easy Citizen Ahmedabad (opening in 2013). HHT Construction (Thailand) continued to make good progress with its construction management work at the BTS Group’s project at Abstracts Phahonyothin Park (90% completed) as of 31 December 2012.

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Investor Relations Quarterly Review: Issue 11

BTS Group Holdings Plc st

3Q 12/13

(3 months ending 31 Dec 2012) (Ended June 2010)

BTS GROUP IN THE COMMUNITY The BTS Group is committed to improving the lives of people, through its vision of being a leading provider of mass transit services. The Group has also initiated many special Corporate Social Responsibility (CSR) projects in both Bangkok and other provinces of Thailand. Activities cover a broad spectrum of social concerns, with a focus on environmental impact. The Group continuously participates in community development in areas including religion, education, sport, public health and encourages staff involvement in all these efforts. December 2012 th The 7 Nuduan Charitable Donation for Children

15 – 17 October 2012 th

The 6 Vegetarian Food Festival with Nuduan

1 October 2012 BTSG hosts lunch for the Elderly

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Bangkok Mass Transit System Public Company Limited (BTSC) recently hosted lunch for 200 children of the Foundation for Rehabilitation and Development of Children and Family (FORDEC). The company also provided bags of rice, stationary and sports equipment.

BTS Group Holdings Public Company Limited (BTSG), in cooperation with Bangkok Metropolitan Administration (BMA) and National Scout Organization of Thailand organised the “The 6th Vegetarian Food Festival with Nuduan” from 15 to 17 October 2012 at the walkway of BTS National Stadium Station. The vegetarian food festival was held to commemorate her Majesty the Queen’s 80th birthday anniversary. The festival also promoted the benefits of eating vegetarian food. In keeping with the healthy lifestyle, 1,500 persons were served daily with vegetarian foods free of charge.

On 1 October 2012, Mr. Keeree Kanjanapas, Chairman of BTSG and management team hosted lunch for 250 senior citizens at Ban Banglamung Social Welfare Development Center for Elderly, Chonburi. The lunch paid tribute to the celebrations of her Majesty the Queen’s 80th birthday anniversary. Moreover, moon cakes from Chef Man Chinese Restaurant, Eastin Grand Sathorn Hotel and cash donation were contributed to the senior citizens.

Investor Relations Quarterly Review: Issue 11

BTS Group Holdings Plc st

3Q 12/13

(3 months ending 31 Dec 2012) (Ended June 2010)

SUMMARY COVERAGE AND ANALYST RECOMMENDATIONS Company Name

Phillip Securities Finansia Syrus Kim Eng Securities KTZMICO Securities Bualuang Securities Thanachart Securities JP Morgan Asia Plus Securities SCB Securities Krungsri Securities OSK Securities DBS Vickers Securities CIMB Securities KGI Securities

Recommenda tion

Target Price

Buy Buy Buy Buy Buy Buy Overweight Buy Buy Buy Buy Buy Buy Buy

8.60 9.00 9.10 8.70 8.90 9.30 9.50 8.60 7.80 6.10 7.50 7.65 7.20 7.20

Summary

Report Date

12-Feb-13 11-Feb-13 7-Feb-13 4-Feb-13 1-Feb-13 24-Jan-13 24-Jan-13 21-Jan-13 4-Jan-13 13-Nov-12 13-Nov-12 13-Nov-12 13-Nov-12 12-Nov-12

Target Price

Sales*

10,404 10,574 9,871 10,013 11,507 9,712 9,244 10,328 9,959 9,786 10,520 10,336 10,006 9,666

EBITDA*

Net Profit*

2012/13E (THB mn) 6,427 4,706 5,447 5,171 4,401 5,280 5,268 4,189 3,568 5,121 5,030 5,027 5,050 4,694

Sales*

EBITDA*

1,732 1,598 1,986 1,739 1,570 1,662 2,117 1,644 1,363 1,384 1,552 1,741 1,385 1,652

Analyst Name

Siam Tiyanont Amnart Ngosawang Jaroonpan Wattanawong Raenoo Bhandasukdi Suppata Srisuk Saksid Phadthananarak Avin Sony Suwat Wattanapornprom Sirima Dissara Sittidath Prasertrungruang Norfauzi Bin Narson Sombat Agekavanpattana Pathompol Laowirayasak Suchot Tirawannarat

Net Profit*

2012/13E (THB mn)

Average Max Min

8.13 9.50 6.10

10,070 11,507 9,129

4,939 6,427 3,568

1,633 2,117 1,363

*Excludes non-recurring items

Source: Broker reports, Bloomberg, SETTrade

SHAREHOLDER CONTACT AND REFERENCE INFORMATION Shareholder Services:

Investor Relations:

For any matters relating to your shareholding such as transfer of shares, change of name and address and loss of share certificates should be addressed in writing to the Registrar:

For enquiries from Institutional investors and securities analysts, please contact: Investor Relations Department, BTS Group Holdings Plc., 15F TST Tower, 21 ViphavadiRangsit Rd, Jompol, Jatujak, Bangkok 10900

The Thailand Securities Depository Co., Ltd. (TSD)

Telephone: Email:

62 The Stock Exchange of Thailand Building, Rachadapisek Road, Klongtoey, Bangkok 10110, Thailand Website: http://www.tsd.co.th Telephone: Facsimile: E-mail:

+66 2 2738525-6 ir@btsgroup.co.th

Financial Calendar: The Quarter Ahead Event End of 3Q 2012/13 3Q 2012/13 Earnings Released 3Q Earnings Review Meeting End of 4Q 2012/13 & FY 2012/13 4Q 2012/13 & FY 2012/13 Earnings Released 4Q 2012/13 & FY 2012/13 Earnings Review Meeting

+66 (02) 229 2888 +66 (02) 654 5426 tsdcallcenter@set.or.th

Date 31 December 2012 13 February 2013 15 February 2013 31 March 2013 27 May 2013 30 May 2013

Notes: A B C D

Data as of 4 Feb 2013. Source: Company and Bloomberg Based on exchange rate of 29.738 as of 4 Feb 2013 Assumes no cost of concession payable by VGI to BTSC Source: Bloomberg, data as of 4 Feb 2013

E F G H

Source: BTS Group Holding Public Co.Ltd. as of 27 Nov 2012 New par value (THB 4.0 per share) and number of new outstanding shares are effective on 7 Aug 2012 Source: BTS Group Holding Public Co.Ltd. as of 7 Feb 2013 Source: Bloomberg, data as of 4 Feb 2013

This document has been prepared and distributed by the Investor Relations Department of BTS Group Holdings Plc. (â&#x20AC;&#x153;BTSGâ&#x20AC;?) solely for information purposes. It does not represent or constitute an offer, invitation, recommendation or solicitation to trade shares in BTSG and should not be relied on as such. Some of the information in this document has not been independently verified, and also includes information made available from public sources and other third party opinion or analyst. BTSG does not monitor or control the content of third party opinion or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statements. Thus, BTSG assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the information described herein. None of BTSG or any of its agents, or all of their respective affiliates, or representatives shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. All information contained in this document is presented as of the date indicated within, and BTSG assumes no duty to confirm, revise or update the information. Certain statements in this document may be deemed to contain forward-looking statements, including the statements included or incorporated with the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. Thus, BTSG assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the forward-looking statements. BTSG undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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