20160811 bts newslrt 1q201617 en

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25

BTS GROUP HOLDINGS PCL

1Q 2016/17

(For the quarter ended 30 Jun 2016) (Ended June 2010)

AT A GLANCE

FROM THE EDITOR

SHARE INFORMATIONi Shares Outstanding Free Floatv Par Value Market Capitalisation YTD daily traded valueiv Stock Identifiers Stock Exchange Symbol Bloomberg / Reuters

Quarterly ridership on the core network continues to grow steadily at 1.0% YoY, reaching 56.5mn trips. Average fare rose 4.6% to THB 28.1 per trip.

Our mass transit business continues to benefit from fundamental driving forces of urbanisation and real estate developments along mass transit lines. July saw a number of developments that firmly signal progress in this sector. The RFP documents for the Pink, Yellow and Orange lines, totaling 106.2km were made available for purchase. We expect to be awarded O&M contracts for Dark Green North and South extensions totaling 31.2 km within the year.

BTS BTS TB / BTS.BK

GROSS PROFIT BY BUSINESS UNITiii

REVENUE BY BUSINESS UNIT

MASS TRANSIT 43%

Dear Investment Community,

11,929.3mn sharesvii 57.3% THB 4.0 / Sharevi THB 110.4bn / USD 3.2bnii THB 241.5bn / USD 6.9mnii

MEDIA 35%

MASS TRANSIT 49%

MEDIA 42%

SERVICES 13% PROPERTY 9%

SERVICES 3% PROPERTY 7%

BTS LAST 12 MONTHS SHARE PRICE PERFORMANCEi:

In our media business operating revenue increased 0.5% YoY, led mainly by the consolidation of MACO since the 1st of June and resilience in the Office and Other media segment. This was in spite of the industry continuing to be characteristically sensitive to macroeconomic headwinds and curtailed overall ad spend, which declined 7.7% YoY. Relative to this backdrop, BTS-related media segment revenues fared proportionately better, down 3.4% YoY, while Office Building and Other media grew 129.2% YoY, following the aforementioned consolidation. On the 3rd of August, our associate company MACO has signed an agreement to acquire 70% of Multi Sign for THB 439mn. This transaction will extend MACO’s leadership in the Outdoor media segment by adding considerable revenue capacity and further upside from digital media conversion.

Our property business revenue declined 39.1% YoY. The decrease is mainly due to our disposal of EGS to U City since 20 April 2015 and no remaining backlog of Abstracts Phahonyothin Park (Tower A) to be transferred compared to the previous year. Abstracts Phaholyothin Park was a project under our former subsidiary Nuvo Line, has since 3Q 2015/16 been deconsolidated as a 50% BTS-SIRI joint venture company. The drop in property revenues was partially offset by our remaining hotel portfolio continuing to see improvements in operating performance, supported by a buoyant tourism environment. The Line Asoke-Ratchada, our first of 6 projects to be launched this year - with project value of THB 3.0bn - was fully sold out with strong interest from foreign buyers, amounting to 36% of sales.

EQUITY MARKETSviii BTS TB SET Transport Index SET Index NIKKEI 225 HANG SENG FTSE 100 S&P 500 CURRENCY MARKETSviii USD vs THB EUR vs THB THB vs JPY THB vs HKD THB vs SGD THB vs GBP

Our City Our Future

3 MO

6 MO

12 MO

0.5% 8.3% 10.9% 3.4% 11.9% 11.1% 6.1%

14.2% 18.1% 18.0% -2.1% 16.6% 19.6% 17.8%

-5.1% 31.7% 7.9% -19.7% -8.4% 1.23% 5.01%

3 MO 0.74% 3.40% 5.01% -0.59% 1.04% -10.17%

6 MO 1.53% 2.49% 11.41% -0.99% 2.60% -11.00%

12 MO 2.98% 0.83% 13.99% -2.93% 2.34% -14.06%

We possess solid financing capabilities to address our long-term investment plans across all our businesses with THB 16.3bn in cash and current investments. Moreover, we received shareholder approval for the issuance of up to THB 30.0bn in “A” rated debentures from Fitch and TRIS ratings. We expect to make opportunistic acquisitions to achieve our strategic plans for our media business whilst building a significant backlog of future revenues in our property business.

Yours faithfully,

Daniel Ross Chief Investment Officer

1

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25

BTS GROUP HOLDINGS PCL

1Q 2016/17

(For the quarter ended 30 Jun 2016) (Ended June 2010)

BTS GROUP FINANCIAL SUMMARY (CONSOLIDATED) INCOME STATEMENT FOR THE QUARTER ENDED (THB mn) Operating revenue Other recurring income Total recurring revenue Operating costs Operating selling and administrative expenses EBITDA Operating EBITDA Finance cost Non-operating gain (loss) EBT Operating income tax Minority interests Net income to equity holders of the parent EPS (THB per share) STATEMENT OF FINANCIAL POSITION (THB mn) Cash and cash equivalents Current investments Trade and other receivables Real estate development costs Accrued income Other current assets Total current assets Investments in associates-net Other long-term investments-net Investment properties Property, plant and equipment Other non-current assets Total non-current assets Total assets Short-term loans from financial institutions Trade accounts payables Current portion of long-term loans Current portion of long-term debentures Other current liabilities Total current liabilities Long-term loans-net of current portion Long-term provisions-related party Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Issued and fully paid shares (mn shares) Issued and fully paid capital Share premium Retained earnings Other components of shareholders’ equity Equity attributable to company's shareholders Non-controlling interest-equity attributable to minority Total shareholders' equity Total liabilities and shareholders' equity

Our City Our Future

1Q 2016/17

1Q 2015/16

% YoY

1,553.5 183.1 1,736.6 639.3 398.8 991 636.1 88.1 167.3 777.7 149.6 80.1 548 0.0463

1,571.9 151.0 1,723.0 650.8 362.7 4,314 664.4 80.2 4,127.2 121.7 59.1 3,016 0.2551

(1.2)% 21.3% 0.8% (1.8)% 9.9% (77.0)% (4.3)% 9.8% N.A. (81.2)% 23.0% 35.4% (81.8)% (81.8)%

30 JUN 16 3,317.6 4,312.9 1,558.1 502.8 243.1 1,476.5 11,411.1 20,133.0 10,279.1 785.4 5,986.7 19,150.2 56,334.4 67,745.5 440.0 1,824.2 46.5 1,348.1 9,641.7 13,300.4 166.3 1,353.6 2,196.1 2,160.5 5,876.6 19,177.0 11,929.3 47,717.4 1,834.6 (1,871.3) (1,330.6) 46,350.2 2,218.3 48,568.5 67,745.5

31 MAR 16 2,364.7 4,666.2 1,111.3 508.5 205.6 1,310.5 10,166.7 21,019.7 9,751.4 734.0 5,673.9 17,823.0 55,002.0 65,168.7 3,750.0 1,623.0 1,095.2 1,347.5 4,639.8 12,455.4 173.0 1,324.7 2,215.9 2,082.7 5,796.4 18,251.8 11,929.3 47,717.4 1,834.6 (2,419.3) (1,675.3) 45,457.3 1,459.5 46,916.9 65,168.7

% Change 40.3% (7.6)% 40.2% (1.1)% 18.2% 12.7% 12.2% (4.2)% 5.4% 7.0% 5.5% 7.4% 2.4% 4.0% (88.3)% 12.4% (95.8)% 0.0% 108.8% 6.8% (3.8)% 2.2% (0.9)% 3.7% 1.4% 5.1% 0.0% 0.0% (0.0)% N.A. N.A. 2.0% 52.0% 3.5% 4.0%

2

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25

BTS GROUP HOLDINGS PCL

1Q 2016/17

(For the quarter ended 30 Jun 2016) (Ended June 2010)

BTS GROUP FINANCIAL SUMMARY (CONSOLIDATED) 30 JUN 16

31 MAR 16

Interest bearing debt

9,690.2

9,283.0

4.4%

Net debt

6,372.6

6,918.3

(7.9)%

1Q 2016/17

1Q 2015/16

% YoY

777.7

4,127.2

(81.2)%

392.9 (40.9) (28.9) 323.1 (423.2) 1,053.2 (0.0) 953.0 2,364.7 3,317.6

904.6 (50.7) (32.8) 821.1 (5,412.8) (961.6) 0.1 (5,553.3) 67.8 10,111.9 4,626.5

(56.6)% N.A. N.A. (60.7)% N.A. N.A. (174.2)% N.A. (100.0)% (76.6)% (28.3)%

1Q 2016/17

1Q 2015/16

4Q 2015/16

DEBT INFORMATION (THB mn)

CASH FLOW STATEMENT FOR 3 MONTHS (THB mn) EBT Cash from operating activities Cash paid for interest expenses Cash paid for corporate income tax Net cash used in operating activities Net cash from (used in) investing activities Net cash used in financing activities Increase in translation adjustment Net decrease in cash and cash equivalents Cash and cash equivalents classified as assets held for sale Cash and cash equivalents at beginning of the period Cash and cash equivalents at the end of the period

% YoY

KEY FINANCIAL RATIOS PROFITABILITY RATIOS Gross operating profit margin (%) Selling and administrative expenses to operating sales ratio (%) Operating EBITDA margin (%)A Accounting EBITDA margin (%) Recurring pre-tax profit margin (%)B Net recurring profit margin (%)B Accounting net profit margin (%)C ROA (%)D ROE (%)E

58.8% 25.7% 40.9% 50.5% 35.2% 26.5% 32.0% 2.8% 3.8%

58.6% 23.1% 42.3% 82.9% 36.5% 29.5% 59.1% 7.7% 10.0%

56.5% 22.4% 42.1% 19.3% 36.0% 34.9% 5.7% 6.7% 8.9%

LIQUIDITY RATIO Current ratio (times)

0.86x

2.40x

0.82x

LEVERAGE RATIOS Total liabilities to total assets (times) Total liabilities to total equity (times) Interest bearing debt to equity (times) Net debt to equity (times) Net debt to operating EBITDA (times) Interest coverage (times)F

0.28x 0.39x 0.20x 0.13x 2.39x 7.22x

0.23x 0.29x 0.08x (0.00)x (0.01)x 8.29x

0.28x 0.39x 0.20x 0.15x 2.57x 7.76x

PER SHARE RATIOSG Basic 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)

Our City Our Future

NOTE:

A Excludes non-operating items and interest income B Calculated based on recurring profit (before MI) / total recurring revenue C Calculated based on accounting net profit (before MI) / total accounting revenue including share of income from investments in associates D Calculated based on accounting net profit (before MI) / average total assets E Calculated based on accounting net profit (before MI) / average total shareholders’ equity F Calculated based on operating EBITDA / finance cost

0.0463 0.027 (0.001) 10.40 4.10

0.2551 0.069 0.063 10.19 4.57

0.0037 0.053 0.027 9.73 3.97

G Calculated based on weighted average number of shares at par value of THB 4.0 per share

3

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25 1Q 2016/17

BTS GROUP HOLDINGS PCL (For the quarter ended 30 Jun 2016)

(Ended June 2010)

1Q 2016/17 FINANCIAL HIGHLIGHTS      

Quarterly ridership; 56.5mn trips in 1Q 2016/17, 1.0% growth YoY. Average fare of THB 28.1 per trip, an increase of 4.6% YoY Share of net profit from investment in BTSGIF in 1Q 2016/17 increased by 6.2% YoY to THB 221.2mn The launch of the fourth condominium project: “The Line Asoke-Ratchada” under the BTS-SIRI Joint Venture in June 2016 with project value of THB 3.0bn was successfully 100% sold out with 36% foreign participation during the pre-sales period.

Services business revenue1 rose by 21.4% YoY to THB 198.7mn mainly from services projects of Bangkok Payment Solutions Co., Ltd. (“BPS”) and ChefMan restaurant Pre-tax recurring profit (before MI) was THB 610.5mn in 1Q 2016/17, decreased 3.0% YoY mainly from a reduction in operating revenue and higher SG&A expenses, partially offset with higher interest income and a decrease in share of net loss from associates/JVs Reported net profit (before MI) for 1Q 2016/17 decreased by 79.6% to THB 628.1mn mainly due to the recognition of a gain on disposal of assets to U City in 1Q 2015/16.

SIGNIFICANT EVENTS 

17 May 2016: BTS Group and BTSC were awarded “A” ratings with a “Stable” Outlook from Fitch Ratings and TRIS Rating. Both ratings agencies have assessed the Company and BTSC as having solid, stable cash flow and profitability in its mass transit and media operations.

The ratings will add flexibility to the Company to tap debt financing sources at attractive rates.



23 May 2016: BTSC signed contracts with Siemens Consortium (“Siemens”) and CRRC Changchun Railway Vehicles Co., Ltd. (“CRRC”) to procure 46 additional 4-car trains, totaling of 184 carriages (Thailand’s largest single order of trains) to serve the increased patronage in the existing network, together with Dark Green North and South line extensions.



31 May 2016: VGI acquired an additional 375mn shares (or 12.46%) of Master Ad Public Company Limited (“MACO”). VGI now currently holds 1,126 million share (or 37.42%) of MACO following its strategic plan to become a “Nationwide Integrated Media Platform” within 2 years or less. The transaction allowed VGI to consolidate MACO since 1 June 2016.



6 July 2016: BTSC bought the Request for Proposal Documents (RFP) of Pink line (Khae Rai to Min Buri; 36.0km, 30 stations) and Yellow line (Lad Prao to Sam Rong; 30.4km, 23 stations) under the Public Private Partnership (PPP) framework which was made available for purchase by the Mass Rapid Transit Authority of Thailand (MRTA). The bid envelope opening date on 17 November and the winning bidders are expected to be announced in 2017.



22 July 2016: The Annual General Meeting of Shareholders 2016 approved the issuance and offering of debentures of the Company in the principal amount not exceeding THB 30bn in order to support business expansion and operations as well as to refinance the Company’s debts. Also, the Company will pay a final dividend of up to THB 4,025.6mn or THB 0.34 per share on 16 August 2016, bringing the total annual dividend paid to THB 8,048.0mn (or THB 0.68 per share).



3 August 2016: MACO announced an agreement to acquire 70% of Multi Sign Company Limited (“Multi Sign”) with a total investment of THB 439mn. Multi Sign is an outdoor media company with a total network of 862 billboards nationwide. As a result, MACO becomes the largest outdoor media player in Thailand.



6 August 2016: Commencement of operations of the Purple line (Bang Yai to Bang Sue; 23.0km, 16 stations) for 30 years from contract signing date until 2043. BEM was awarded the concession to operate the Purple line from MRTA in September 2013. Under the agreement, BEM is responsible for investing and implementing the E&M works as well as the procurement of rolling stock, whilst the MRTA invests in the civil works.

Our City Our Future

4

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25

BTS GROUP HOLDINGS PCL

1Q 2016/17

(For the quarter ended 30 Jun 2016) (Ended June 2010)

1Q 2016/17 PERFORMANCE

The Group recorded consolidated total revenue of THB 1,863.0mn in 1Q 2016/17. This represented a decrease of 63.5% YoY or THB 3,234.5mn from THB 5,097.5mn in 1Q 2015/16. The decrease was primarily due to (1) extraordinary gains (before tax) recognised from the sale of property assets to U City Public Company Limited (“U City”) (recorded under “gain on swap of investments”) of THB 3,458.5mn in 1Q 2015/16 as well as (2) a reduction in revenue from sales of real estates of THB 62.0mn as there was no remaining backlog of Abstracts Phahonyothin Park (Tower A) under former subsidiary, Nuvo Line, which subsequently became a BTS-SIRI JV company in 3Q 2015/16. The decrease was partially offset with (3) gain from fair value measurement in MACO at the acquisition date (recorded under “gain on change in status of investment”) of THB 207.4mn.

This is attributed to the consolidation of MACO’s financial statement following the increase in our ownership stake in MACO from 24.96% to 37.42%.

Despite higher operating revenue from Mass Transit, Media and Services business, which increased by 5.5%, 0.5% and 21.4% respectively, total operating revenue2 in 1Q 2016/17 decreased by 1.2% YoY or THB 18.4mn to THB 1,553.5mn largely as a result of a decrease in Property operating revenue from a reduction in sales of real estates as well as our divestment of Eastin Grand Hotel Sathorn Bangkok (“EGS”) to U City in April 2015 (see details in Segmental Performance section). Revenues from the Mass Transit, Media, Property and Services businesses accounted for 43.2%, 34.9%, 9.1% and 12.8% of total operating revenue, respectively.

Operating Revenue and Operating Gross Profit Margin by BU Operating Revenue2 (THB mn) Mass Transit3

1Q 2016/17

% of Total2

1Q 2015/16

% of Total2

% Change (YoY)

1Q 2016/17 GP Margin5

1Q 2015/16 GP Margin5

671.1

43.2%

636.0

40.5%

5.5%

67.3%

67.2%

Media

541.7

34.9%

539.2

34.3%

0.5%

70.4%

67.1%

Property4

141.9

9.1%

233.0

14.8%

(39.1)%

35.9%

39.9%

Services1

198.7

12.8%

163.7

10.4%

21.4%

15.3%

23.9%

1,553.5

100.0%

1,571.9

100.0%

(1.2)%

58.8%

58.6%

TOTAL2

Total consolidated expenses and SG&A reached THB 1,096.8mn in 1Q 2016/17, an increase of THB 136.6mn or 14.2% YoY mainly from (1) the net increase in selling and administrative expenses of THB 114.9mn largely from the increased staff cost, SG&A expenses of MACO following the consolidation as well as SG&A of Services BU (see details in Segmental Performance section) and (2) an increase in cost of services of THB 57.9mn.

The increase was partially offset with (3) a decline in cost of sales of real estate of THB 36.1mn which was in line with the decrease in sales of real estates as aforementioned.

Operating costs decreased by 1.8% YoY to THB 639.3mn largely from a reduction in operating costs of Property and Media. As operating costs decreased at a higher rate than the decline in operating revenues, the Group operating gross profit margin5 improved to 58.8% from 58.6% in 1Q 2015/16. However, the Group operating EBITDA6 was THB 636.1mn, a decrease of THB 28.3mn or 4.3% YoY. The operating EBITDA 6 margin decreased to 40.9% in 1Q 2016/17 (versus 42.3% in 1Q 2015/16) mainly from higher SG&A expenses and higher contribution of Services business which has lower margins. Finance costs increased by 9.8% YoY or THB 7.9mn to THB 88.1mn primarily from the increase in interest expense of the bill of exchange which was issued during 1Q 2016/17.

1

Services revenue includes sales from BSS, revenue from Carrot, revenue from BPS, revenue from HHT construction, revenue from ChefMan Restaurants and revenue from Rabbit Internet Group (formerly known as ASK Hanuman group) 2

Operating revenue from the operational performances from 4 BUs + share of net profit (loss) from BTSGIF + interest income from train procurement; EXCLUDES interest income, dividend income and nonrecurring items 3

Mass Transit revenues include: i) ii)

Share of net profit (loss) from BTSGIF (included in ‘Share of profit (loss) from investments in associates’ in Statement of comprehensive income) Service Income from Train & Bus Operation Management (included in ‘Service income’ under ‘Revenues from provision of operating services’ and ‘interest income from train procurement’)

4

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.

5

Operating gross profit calculated based on the operational performances from 4 BU, share of net profit (loss) from BTSGIF and interest income from train procurement

6

Operating EBITDA calculated based on the operational performances from 4 BU, share of net profit (loss) from BTSGIF and interest income from train procurement; EXCLUDES interest income, dividend income, share of net profit (loss) from other associates (except from BTSGIF) and joint ventures, non-recurring items from sales of net fare-box revenue to BTSGIF and other non-recurring items

Our City Our Future

5

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25

BTS GROUP HOLDINGS PCL

1Q 2016/17

(For the quarter ended 30 Jun 2016) profit7

(Ended 2010)183.1mn largely from (1) the increase in interest and increased by THB 32.1mn or 21.3% YoYJune to THB

Other recurring investment income of THB 65.4mn mainly from an increase in interest income from related parties (2) the reduction in share of net loss from investments in joint ventures/associates (not including share of profit in BTSGIF) of THB 16.7mn. However, the increase was partially offset with (3) the reduction in gain on sale of investment of THB 37.0mn. Despite higher other recurring profit, pre-tax recurring profit7 for this quarter was THB 610.5mn, decreasing 3.0% YoY from THB 629.3mn in 1Q 2015/16 as a result of above-mentioned lower operating revenue, higher SG&A expenses and an increased finance cost. Net recurring profit (before MI) in 1Q 2016/17 was THB 460.8mn, decreasing 9.2% YoY from THB 507.6mn in 1Q 2015/16. Reported income tax expense was THB 149.6mn, decreasing 85.8% YoY from THB 1,051.7mn in 1Q 2015/16 primarily from tax on the capital gain on sale of property assets (U City transaction) of THB 930.0mn recognised in 1Q 2015/16.

Taking into account all the aforesaid transactions, the Group recorded a consolidated net profit of THB 628.1mn (decreasing 79.6% YoY) and profit attributable to the equity holders of the Company of THB 548.0mn (decreasing 81.8% YoY). Net profit margin8 attributable to the equity holders of the Company in 1Q 2016/17 was 27.9% (versus 58.4% in 1Q 2015/16). The decrease in net profit and net profit margin was mainly due to the recognition of gain on swap of investments with U City in the previous year.

7 Recurring profit calculated based on the operational performances from

4 BU, share of net profit (loss) from BTSGIF, interest income from train procurement and other associates and joint ventures as well as other recurring items which are interest income and other recurring items (before MI) 8 Net profit margin calculated from

net profit attributable to the equity holders of the Company / total revenue per financial statement + share of profit/ (loss) from investments in JVs and associates + gross revenue under profit / (loss) from discontinued operation for the year (if any))

SEGMENTAL PERFORMANCE MASS TRANSIT BUSINESS Total Mass Transit revenue increased 5.5% YoY to THB 671.1mn supported by an increase in share of net profit from BTSGIF and higher O&M income. O&M revenue rose by 5.9% or THB 23.3mn YoY to THB 417.3mn, mainly attributable to the contractually agreed increase in the operating fee of the Green Line – Sukhumvit extension and Silom extension.

Share of net profit from investment in BTSGIF in 1Q 2016/17 increased by THB 12.8mn or 6.2% YoY to THB 221.2mn, which resulted from improvements in underlying core network performance. Fare-box revenue of the core system rose by 5.7% YoY or THB 85.7mn to THB 1,586.7mn attributable to ridership growth and the increase in average fare. Total ridership was 56.5mn trips, up 1.0% YoY mainly from organic growth.

Average fare was THB 28.1 per trip, an increase of 4.6% YoY from the adjustment in card promotions on the monthly passes in July 2015 and the discontinuation of discounts given to stored value rabbit cards in January 2016.

Cost of Mass Transit revenue increased by THB 11.0mn or 5.3% YoY to THB 219.7mn. As operating cost increased at a lower rate than the increase in operating revenue, the operating EBITDA margin improved to 68.3% YoY in 1Q 2016/17 (versus 67.9% in 1Q 2015/16).

5-quarter Historical Ridership and % Growth 9.0%

7.1%

63.0

4.7%

4.7%

4.8%

5-quarter Historical Average Fare and % Growth

29.0

1.0%

2.8%

3.5%

2.0%

1.6%

0.0 %

1.0%

-0.9% 58.0

58.5 55.9

59.1

0.0% 59.1

4.0%

-0.7% 0.0%

0.4%

4.6% 0.6%

27.8

27.9

28.1

3Q 2015/16

4Q 2015/16

1Q 2016/17

-4.4%

27.4 26.9

56.5

53.0

48.0

-50.0%

1Q 2015/16 2Q 2015/16 3Q 2015/16 4Q 2015/16 1Q 2016/17 Ridership (mn trips) Passenger Growth (QoQ)

Our City Our Future

Passenger Growth (YoY)

24.0

1Q 2015/16

2Q 2015/16

Average Fare (THB/trip)

Average Fare Growth (YoY)

Average Fare Growth (QoQ)

6

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25

BTS GROUP HOLDINGS PCL

1Q 2016/17

(For the quarter ended 30 Jun 2016) (Ended June 2010)

MEDIA BUSINESS Advertisers and media agencies continued to be cautious on their spending as is evident in the contraction of advertising expenditures by 7.7% YoY in 1Q 2016/17, reflecting mainly the subdued economic activity. Despite a decline in the industry’s advertising expenditures, VGI revenue improved slightly by 0.5% YoY to THB 541.7mn in 1Q 2016/17. Revenue growth was largely as a result of the expansion in the Outdoor Media segment by acquiring an additional 12.46% in MACO and the resilience of the Office Building and Other media segment. This business unit recorded revenue growth of THB 67.7mn from THB 52.4mn to THB 120.1mn, mainly from the increase in the number of office buildings, which grew to 142 buildings from 103 buildings in 1Q 2015/16. However, this improved media revenue was partially affected by the Modern Trade Media business (which was terminated in 2Q 2015/16).

Thai Annual Advertising Spending VS Media Revenue*

28,756

29,270

849

853

28,950

28,893

30,873

32,208 29,243

31,509

30,774

30,784 26,822

26,404

804 641

762

795

29,079

789 616

549

537

520

500

551

Includes Modern Trade Media Revenue Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 Q1 14/15 Q2 14/15 Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16 Q4 15/16 Q1 16/17 Total Industry AdSpend (THB mn)

VGI Revenue (THB mn)*

Sources: The Nielsen Company (Thailand) Limited *Media revenue per VGI financial statement

Cost of revenue decreased by 9.7% YoY or THB 17.2mn to THB 160.4mn mainly due to the high-base effect resulting from the inclusion of costs in 1Q 2015/16 of the discontinued Modern Trade media segment. As a result of the discontinuation of this lower margin segment, the operating EBITDA margin in this year improved to 60.4% (versus 58.8% in 1Q 2015/16).

More commentary on Media business can be found in 1Q 2016/17 VGI Global Media’s management discussion and analysis http://vgi.listedcompany.com/misc/MDNA/20160803-vgi-mdna-1q20162017-en.pdf PROPERTY BUSINESS In 1Q 2016/17, the launch of the fourth condominium project (The Line Asoke-Ratchada) under the BTS-SIRI joint venture was successfully 100% sold out during the pre-sales period with project value of THB 3.0bn and 36% foreign participation. The idiosyncrasies of Thai real estate accounting practices requires the Company to record a share of loss from BTS-SIRI joint ventures of THB 59.9mn mainly from selling and marketing expenses related to The Line projects, while revenues are to be booked later upon transfer of presold units. However, the Group expects to transfer units from ‘The Line Sukhumvit 71’ project at the end of FY 2016/17, with revenue recognition of approximately THB 2.0bn.

Property operating revenue in this quarter was THB 141.9mn, decreasing 39.1% YoY from THB 233.0mn in 1Q 2015/16 due to the reduction in both Residential Property and Commercial Property revenue.

Residential Property revenue decreased by 85.7% YoY or THB 62.5mn to THB 10.4mn in 1Q 2016/17. The decrease is mainly due to no remaining backlog of Abstracts Phahonyothin Park (Tower A) to be transferred compared to the previous year (1Q 2015/16: transferred 14 units). Note that Abstracts project under Nuvo Line (our former subsidiary) which has since 3Q 2015/16 been deconsolidated as a 50% BTS-SIRI joint venture company.

Commercial Property revenue was THB 131.5mn, a reduction of 17.8% YoY or THB 28.5mn mainly as a result of our disposal of EGS to U City since 20 April 2015. However, the decrease was partially offset with the increase in revenue from U Sathorn Hotel of THB 3.7mn. In this quarter, the Company recognised a share of loss from our associate, U City, of THB 31.8mn.

Our City Our Future

7

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25

BTS GROUP HOLDINGS PCL

1Q 2016/17

(For the quarter ended 30 Jun 2016) (Ended June 2010)

Operating costs decreased by 35.1% YoY or THB 49.1mn to THB 90.9mn as there were no costs related to the transfer of units of Abstracts Phahonyothin Park (Tower A) as well as no costs related to EGS. Property SG&A expenses also reduced by 28.3% YoY or THB 29.9mn to THB 76.0mn, largely from the reduction in expenses related to Abstracts Phaholyothin Park (Tower A) and EGS. The operating EBITDA margin dropped to -2.0% in 1Q 2016/17 (5.9% in 1Q 2015/16).

RESIDENTIAL PROPERTY SUMMARY

100% SOLD OUT

100% SOLD OUT

THE LINE PROJECTS

Our City Our Future

THE LINE JATUJAK-MOCHIT

THE LINE SUKHUMVIT 71

100% SOLD OUT

100% SOLD OUT

THE LINE RATCHATHEWI

THE LINE ASOKE-RATCHADA

100% SOLD OUT

100% SOLD OUT

8

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25

BTS GROUP HOLDINGS PCL

1Q 2016/17

(For the quarter ended 30 Jun 2016) (Ended June 2010)

BACKLOG OF BTS-SIRI JV PROJECTS

2,983 7,299

NOTE:  Calculated based on 4 launched joint venture projects  Equity method is applied to joint venture transactions  Calculated based on BTS Group’s fiscal year

13,625

1,353 1,990 FY 16/17E

FY 17/18E

FY 18/19E

FY 19/20E

BTS-SIRI JV Presales Backlog

PROPERTY REVENUE BREAKDOWN

Residential 7.3%

Rentals 27.9%

Hotels 38.1%

Thana City Golf Club 34.0%

Commercial 92.7%

Total Property Revenue: THB 141.9mn

Thana City Housing 13.5%

Par 1 86.5%

Total Residential Revenue: THB 10.4mn

Total Commercial Revenue: THB 131.6mn

COMMERCIAL PROPERTY SUMMARY 1Q 2016/17 REVPAR & OCCUPANCY BY HOTEL RevPar (THB per night)

Occupancy Rate

83.6% 75.5%

1,976

1,940

U Chiang U U Sathorn Mai Inchantree

Our City Our Future

76.3%

67.4%

1,204

2,544

3,000 2,500 2,000 1,500 1,000 500 -

HISTORICAL HOTEL OCCUPANCY

Blended

90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0%

68.8%

78.7% 75.9% 78.3% 74.4% 80.5% 81.8% 82.9% 76.3%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 14/15 14/15 14/15 14/15 15/16 15/16 15/16 15/16 16/17

9

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25 1Q 2016/17

BTS GROUP HOLDINGS PCL (For the quarter ended 30 Jun 2016)

(Ended June 2010)

SERVICES BUSINESS

Services business revenue increased by THB 35.0mn or 21.4% YoY to THB 198.7mn. This increase was primarily due to (1) an increase in revenues of THB 23.2mn, mainly attributable to the development of the fare collection system and other software as well as sale of card readers system

by BPS, (2) an increase in insurance commission revenue and content advertising revenue generated by Rabbit Internet Group (formerly known as ASK Hanuman Group) of THB 12.2mn and (3) an increase in revenue from ChefMan Restaurants which increased by THB 9.4mn or 11.4% YoY to THB 91.6mn largely from new ChefMan branch ‘Buffet at Central World’ (officially opened in February 2016).

Operating costs increased by 35.2% YoY or THB 43.8mn to THB 168.4mn largely from an increase in costs of new branches of ChefMan restaurant and costs related to aforesaid BPS projects. There was also THB 85.0mn of SG&A expenses, an increase of 97.5% or THB 42.0mn YoY. Key SG&A items were mainly from staff cost and marketing expenses related to Rabbit Internet Group and BPS projects.

Share of Income / (Loss) from Investments in Joint Ventures & Associates (as of 30 June 2016)

Amount (THB mn) Share of income/ (loss) from investments in joint ventures ATS (AEON-rabbit)

4.9

Bayswater

(33.1)

BTS-SIRI JV Projects

(59.9)

Rabbit LINE Pay

(6.3)

Total

(94.3)

Share of income/ (loss) from investments in associates Absolute Hotel Services (AHS)

0.8

BTSGIF

221.2

MACO and Aero Media

3.0

U CITY

(31.8)

MACO’s associates

0.6

Total

193.9

FINANCIAL POSITION (THB mn) 65,169 10,167

67,745 11,411

Total current assets

(THB mn) 65,169

67,745

12,455

13,300

5,796

5,877

Total non-current assets 55,002

31-Mar-16

Our City Our Future

56,334

30-Jun-16

46,917

48,569

31-Mar-16

30-Jun-16

Total current liabilities Total non-current liabilities Total shareholders' equity

10

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25

BTS GROUP HOLDINGS PCL

1Q 2016/17

(For the quarter ended 30 Jun 2016)

Ended June of 2010) Total assets as of 30 June 2016 stood at THB 67,745.5mn,(an increase THB 2,576.8mn or 4.0% from 31 March 2016. Total current assets stood at THB 11,411.1mn, increasing by 12.2% or THB 1,244.4mn. The increase was primarily attributed to (1) an increase in cash and cash equivalents of THB 953.0mn (see further details in Cash Flow section), (2) an increase in trade and other receivables of THB 446.9mn. The increase was partially offset with (3) a decline in current investments of THB 353.3mn largely resulted from the reallocation from money market to other long term investments. Total non-current assets was THB 56,334.4mn, an increase of 2.4% or THB 1,332.4mn primarily attributable to (1) the consolidation of MACO’s financial statement which largely resulted in (i) an increase in unallocated costs of business acquisition of THB 880.2mn, (ii) higher intangible assets of THB 309.2mn, (iii) higher property, plant and equipment (PPE) of THB 312.8mn and (iv) a reduction in investments in associates of THB 886.7mn primarily because MACO was changed its status from our associate to our subsidiary, (2) an increase in loans to related parties of THB 605.1mn to THB 6,553.6mn mainly from loans to BTS-SIRI Joint Venture projects, (3) an increase in investment in joint venture of THB 549.7mn mainly from investments in Rabbit Line Pay, (4) an increase in other long-term investment of THB 527.7mn. The increase was partially offset with (5) a decline in restricted deposits of THB 1,152.3mn following the release of collateral in relation to an offshore loan.

Total liabilities increased from 31 March 2016 by 5.1% or THB 925.2mn to stand at THB 19,177.0mn largely due to an increase in bills of exchange payable of THB 4,772.1mn as well as an increase in trade and other payables of THB 201.2mn. However, the increase was partially offset with a repayment of net loans from financial institutions of THB 4,365.4mn.

Total equity increased by THB 1,651.6mn or 3.5% YoY to THB 48,568.5mn mainly attributable to (1) an increase in non-controlling interests of the subsidiaries of THB 758.8mn largely following the consolidation of MACO, (2) the increase in surplus from the changes in the ownership interests in subsidiaries of THB 592.6mn, which was primarily the result of the Company decreasing its shareholding in VGI from 74.3% to 72.3% and (3) a reduction in unappropriated deficits of THB 548.0mn. As of 30 June 2016, total issued and fully paid-up shares stood at 11,929.3mn shares. Return on equity for 1Q 2016/17 was 3.8%, which decreased from 10.0% in 1Q 2015/16 as a result of the decreased net profit and increased equity.

CASH FLOW For the quarter ended 30 June 2016, cash and cash equivalents reached THB 3,317.6mn, an increase of 40.3% or THB 953.0mn. Cash from operating activities was THB 392.9mn, decreasing THB 511.7mn or 56.6% primarily from lower net profit and an increase in trade and other receivables. After deducting cash paid for corporate income tax of THB 28.9mn (1Q 2015/16: THB 32.8mn) and cash paid for interest expenses of THB 40.9mn (1Q 2015/16: THB 50.7mn), net cash from operating activities was THB 323.1mn. Net cash used in investing activities was THB 423.2mn. The key components are (1) net cash paid for purchases of other long-term investments of THB 852.6mn, (2) cash paid for purchases of investments in joint ventures of THB 750.0mn (mainly from investments in Rabbit Line Pay), (3) an increase in loans to related parties of THB 731.9mn, (4) a decrease in restricted deposits of THB 1,152.3mn following the release of collateral in relation to an offshore loan, (5) dividend income of THB 470.0mn and (6) a decrease in current investments of THB 431.9mn. Net cash from financing activities was THB 1,053.2mn mainly from (1) a net increase in bills of exchange payables of THB 4,748.2mn, (2) cash received from sale of VGI of THB 633.6mn and (3) net cash paid for loans from financial institutions of THB 4,376.0mn.

Three-Months Cash Flow Snapshot (THB mn)

1,053 323* 2,365

Beginning cash (31/3/16)

CFO

3,318** (423)

CFI

CFF

Ending cash (30/6/16)

* After tax (THB 28.9mn) and interest expense (THB 40.9mn) ** Excluding BTSC sinking fund and THB 13.0bn liquid investments

Our City Our Future

11

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25

BTS GROUP HOLDINGS PCL

1Q 2016/17

(For the quarter ended 30 Jun 2016) (Ended June 2010)

BTS GROUP IN THE COMMUNITY 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 and public health and encourages staff involvement in all these efforts.

‘THE NEXT STATION-HAPPINESS’ The Next Station-Happiness is the core CSR project organised monthly by BTS Group (BTSG) and initiated by Khun Keeree Kanjanapas. This project is focused on community development to deliver happiness and assistance to people. The Company subsidises facilities development and provides basic necessities and consumable products such as rice, canned fish, fish sauce, sugar, cooking oil, clothing, medicine, etc. to people in remote areas and underprivileged provinces all over the country. Furthermore, the Company provided free physical checkups and mobile health units which were supported by Vibhavadee Hospital.

The 14th Sky Clinic by BTS Group

Developing Student Quality of Life through a BTS Group Project

On 23 May 2016, BTS Group cooperated with 15 leading hospitals in Bangkok, to organise the 14th “Sky Clinic” at BTS Bang Na Station. The 4-day activity provided free health check-ups for illnesses such as diabetes, heart, liver, eyerelated diseases, cancer, bone, joint and dental problems and the provision of traditional remedies.

On 15 July 2016, BTS Group was assigned to host related activities at Nong Wang Prachasan School in Huay Mek District, Kalasin Province, attended by a total of 186 students studying at both primary and secondary levels. As the school was lacking a library, a project was launched at a cost of THB 500,000 to construct a new 204-square metre library. Construction is expected to be completed in September 2016.

Our City Our Future

12

INVESTOR RELATIONS QUARTERLY REVIEW: ISSUE 25

BTS GROUP HOLDINGS PCL

1Q 2016/17

(For the quarter ended 30 Jun 2016) (Ended June 2010)

SUMMARY COVERAGE AND ANALYST RECOMMENDATIONS (UPDATED FROM 23 MAY 2016 – 8 AUG 2016) Company Name Phillip Securities KGI Securities RHB OSK Securities KTZMICO Securities Kasikorn Securities SCB Securities IV Global BofA Merril Lynch Bualuang Securities Credit Suisse Deutsche Bank DBS Vickers Securities Finansia Syrus Kim Eng Securities Macquarie Securities Trinity Securities

Recc

Target Price

Report Date

Sales

Accumulate

10.10

4-Aug-16

5,894

3,531

2,059

Siam Tiyanont

Outperform Buy Buy Underperform Buy Buy Buy Buy Outperform Hold Buy Hold Buy Neutral Hold

10.60 10.40 10.30 7.30 10.50 9.90 10.90 11.40 11.20 9.48 10.00 9.50 10.54 9.50 9.03

20-Jun-16 17-Jun-16 13-Jun-16 8-Jun-16 2-Jun-16 2-Jun-16 30-May-16 30-May-16 30-May-16 30-May-16 30-May-16 30-May-16 30-May-16 30-May-16 30-May-16

6,605 5,259 5,370 5,179 6,248 5,587 6,654 6,230 5,596 5,869 6,127 6,464 6,612 5,964 6,632

3,400 1,987 2,262 1,659 2,903 3,022 2,596 1,646 2,359 2,315 3,750 3,921 2,459 2,139 2,894

2,143 1,810 1,789 1,275 1,950 2,200 2,347 2,076 1,820 2,182 2,295 1,549 1,956 1,986 1,693

Parin Kitchatornpitak Naruedom Mujjalinkool Raenoo Bhandasukdi Piyachat Ratanasuvan Sirima Dissara Rattana Leenutaphong Kaseedit Choonnawat Suppata Srisuk Warayut Luangmeeakul Kris Sintusarn Sombat Agekavanpattana Jitra Amornthum Jaroonpan Wattanawong Alastair Macdonald Duladeth Bik

10.00 9.10 9.99 11.40 7.30

30-May-16 23-May-16

5,543 5,518 5,964 6,654 5,179

3,326 2,796 2,720 3,921 1,646

2,087 2,291 1,973 2,347 1,275

Anuwat Srikajornratkul Sumedh Samant

Asia Plus Securities Buy JP Morgan Neutral Average Max Min Sources: Broker reports, Bloomberg, SETTrade

EBITDA Net Profit* 2016/17E (THB mn)

Analyst Name

*Excludes non-recurring items

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 Pcl., 15F TST Tower, 21 Viphavadi-Rangsit Rd, Jompol, Jatujak, Bangkok 10900

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

Telephone: (02) 273 8611-5 Email: ir@btsgroup.co.th

93 Ratchadaphisek Road, Dindaeng, Bangkok 10400, Thailand Website: http://www.set.or.th/tsd

Financial Calendar: The Quarter Ahead Event 1Q 2016/17 Earnings Released 1Q 2016/17 Analyst Meeting End of 2Q 2016/17 2Q 2016/17 Earnings Released 2Q 2016/17 Analyst Meeting

Telephone: +66 (02) 009 9000 Facsimile: +66 (02) 009 9991 E-mail: SETContactCenter@set.or.th

Date 8 Aug 2016 11 Aug 2016 (2pm-4pm) 30 Sep 2016 11 Nov 2016 16 Nov 2016 (2pm-4pm)

Notes: i ii iii iv v

Data as of 8 Aug 2016 Sources: Company and Bloomberg Based on exchange rate of 1 USD = THB 34.85 as of 8 Aug 2016 Assumes no cost of concession payable by VGI to BTSC Source: Bloomberg, data as of 8 Aug 2016 Source: BTS Group Holdings PCL as of 31 Mar 16

vi

New par value (THB 4.0 per share) and numbers of new outstanding shares are effective since 7 Aug 2012 Source: BTS Group Holdings PCL as of 8 Aug 2016 viii Source: Bloomberg, data as of 8 Aug 2016 vii

This document has been prepared and distributed by the Investor Relations Department of BTS Group Holdings Pcl. (“BTSG”) 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.

prepared by Investor Relations department BTS Group Holdings PCL

Our City Our Future

13