Investor Relations Quarterly Review: Issue 4

Investor Relations Quarterly Review: Issue 4

BTS Group Holdings Plc st

4Q 10/11

(Full year and 3 months ending 31 March 2011)

AT A GLANCE

FROM THE EDITOR

Share Information1

Dear Investment Community,

Shares Outstanding Free Float5 Par Value Market Capitalisation Stock Identifiers Stock Exchange Symbol Bloomberg / Reuters

55,889.3mn shares 44.4% THB 0.64 / Share THB 40.8mn/ USD 1.33 bn2

Revenue by Business Unit

Gross Profit by Business Unit

FY 10/11 was one of the most momentous of years in the Company’s history. The acquisition of 94.6% of the shares of BTSC, inclusion into the SET50 Index (Thailand’s 50 largest companies by market capitalization) and the raising of approximately THB 44bn in cash from the equity and debt capital markets were just some of the key developments of the year. These events, together with a strengthened leadership team leaves the Company on a firm footing to face the challenges of the coming year and beyond.

BTS BTS TB / BTS.BK

3

Source: Company 1

BTS last 12 months Share Price Performance :

Equity Markets4 BTS TB SET Transport Index SET Index NIKKEI 225 HANG SENG FTSE 100 S&P 500 Currency Markets4 USD vs THB EUR vs THB THB vs JPY THB vs HKD THB vs SGD THB vs GBP

3 MO 2.82% 2.60% 8.96% -9.91% -0.65% -0.91% 0.29% 3 MO 0.92% -3.04% 0.20% -0.81% 2.46% 0.54%

6 MO -8.75% -16.92% 7.10% -3.68% 0.76% 7.42% 12.75% 6 MO -0.36% -10.00% 3.87% 0.19% 7.63% 6.50%

The business outlook for our core business looks very positive. In 4Q 10/11 our mass transit average weekday ridership beat new records reaching 509,106 passengers per weekday. For FY 11/12 we expect to post ridership growth of approximately 15% in FY 11/12 on account of the opening of the new Sukhumvit line extension (On nut – Bearing) which is due to open in August 2011, as well as from organic ridership growth and the full year effects of feeders such as the BRT and Airport link. Our income from train operating management should also post strong growth on account of our contract to run the Sukhumvit line extension. These are the first steps in the implementation of the Ministry of Transport’s aggressive mass transit network expansion plan and should provide the platform for exciting growth in our core business.

Our media business is also forecasting healthy growth in revenue of approximately 30% for the fiscal year. Most of the growth is expected to come from new contracts secured in the modern trade sector and our BTS-related media should have steady growth also. FY 11/12 will also be an ground-breaking year for our property division with our first condominium project Abstracts Sukhumvit 66/1 reaching completion. Our services business division will continue to develop and provide strategic support, and we expect that our common ticketing system will be launched within this year.

12 MO 21.67% 17.98% 43.45% -2.02% 17.29% 14.46% 22.18%

On July 3, we will have a general election, the 27th in Thailand’s history. In spite of last year’s political disruptions, we are nevertheless optimistic of ongoing political stability in 2011/12 and beyond. In any case, our core business has a demonstrated track record of resilience to economic and political uncertainty and we expect this to continue. Interest rates look set to rise further, but following the issue of the convertible debt in January 2011, approximately 90.0% of the Group’s debt is fixed rate at an average cost of approximately 4.3% per annum. th

On March 24 we paid an interim dividend of THB 0.129 / share, the Company’s first dividend since the Asian Financial Crisis. Going forward the company expects to maintain its minimum 50% of net profit dividend policy and aims to have a dividend yield at least in line with the SET50 Index companies

12 MO -0.85% -7.67% 1.18% 0.77% 5.17% 6.86%

Yours faithfully,

Daniel Ross Financial Director

Our City Our Future

1

Investor Relations Quarterly Review: Issue 4

BTS Group Holdings Plc st

4Q 10/11

(Full Year and 3 months ending 31 March 2011)

BTS GROUP FINANCIAL SUMMARY (CONSOLIDATED) Income Statement (THB mn) Operational revenue Other operational income Total revenue Operational costs Selling and Administrative expenses Income (loss) from investment in associates Operational EBIT Finance cost Non-operational gain (loss) 5 EBT Income tax Minority interests Net income attributable to equity holders of the parent EPS (THB per share)

Balance Sheet (THB mn) Cash and cash equivalents Account receivables Real estate development costs Other current assets Total current assets Elevated project costs Land and project under development Property, plant and equipment Other non-current assets Total non-current assets Total assets Short-term loan from financial institution Account Payable Account Payable from subsidiaries' acquisition Other current liabilities Total current liabilities Long-term loan - net of current portion Long-term debentures Convertible debentures – liability component Other non-current liabilities Total non-current liabilities Total liabilities Issued and fully paid capital at Par THB 1 Convertible debentures – equity component Share discount Retained earnings Other shareholders' equity Equity attributable to company's shareholders Non-controlling interest of subsidiaries Total shareholders' equity Total liabilities and shareholders' equity

4Q 10/11

4Q 09/10

% YoY

3Q 10/11

% QoQ

FY 10/11

FY 09/10

% YoY

1,581.6 107.2 1,688.8 889.2 311.0 1.3 489.9 473.5 (47.5) (31.1) 23.3 22.1

1,383.3 76.7 1,460.0 749.5 316.6 0.6 394.4 196.8 236.2 433.8 17.5 8.8

14.3% 39.8% 15.7% 18.6% -1.8% 142.4% 24.2% 140.6% -120.1% -107.2% 33.3% 150.0%

1,625.7 60.4 1,686.1 924.0 360.9 0.5 401.6 343.8 3.4 61.2 34.6 14.2

-2.7% 77.4% 0.2% -3.8% -13.8% 187.3% 22.0% 37.7% -1495.2% -150.8% -32.6% 54.9%

5,894.4 209.9 6,104.3 3,362.1 1,244.6 1.3 1,498.9 1,601.9 554.9 451.9 106.3 60.7

5,630.8 209.0 5,839.8 3,271.6 1,131.7 0.5 1,437.0 545.5 4,870.3 5,761.7 70.2 295.0

4.7% 0.4% 4.5% 2.8% 10.0% 133.4% 4.3% 193.7% -88.6% -92.2% 51.5% -79.4%

(76.5) (0.0014)

407.5 0.0535

-118.8% -102.6%

12.3 0.0002

-719.7% -719.7%

284.9 0.0050

5,396.5 0.7087

-94.7% -99.3%

31-Mar 2011

31-Dec 2010

%QoQ

31-Mar 2010

% YoY

1,825.4 571.9 2,956.7 939.3 6,293.3 44,443.0 4,814.1 5,349.8 2,925.9 57,532.9 63,826.2 500.0 267.5

2,665.6 543.0 2,794.2 979.4 6,982.2 44,619.4 4,405.6 5,188.9 2,250.4 56,464.4 63,446.7 900.0 242.0

-31.5% 5.3% 5.8% -4.1% -9.9% -0.4% 9.3% 3.1% 30.0% 1.9% 0.6% -44.4% 10.5%

2,477.7 527.2 2,867.7 973.1 6,845.8 43,443.0 4,427.1 4,185.6 2,376.3 54,432.0 61,277.9 1,000.0 214.8

-26.3% 8.5% 3.1% -3.5% -8.1% 2.3% 8.7% 27.8% 23.1% 5.7% 4.2% -50.0% 24.5%

2,894.3 3,661.7 1,785.3 11,906.6 8,486.8 8,613.4 22,305.2 25,967.0 35,769.1 1,356.6 (1,490.7) (874.9)

21,155.7 (18,884.2) 3,413.5 10,481.8 11,898.3 75.1 22,455.2 25,868.7 55,889.3 (16,793.6) (3,716.9) (877.7)

-100.0% N.A. 7.3% -83.0% 0.1% N.A. 11368.6% -0.7% 0.4% -36.0% N.A. N.A. N.A. N.A.

21,155.7 2,960.9 25,331.4 149.3 11,873.6 103.0 12,126.0 37,457.4 7,614.4 (735.1) (4,036.1) 18,479.0

-100.0% -2.3% -85.5% 1095.5% 0.3% N.A. 8262.6% 83.9% -30.7% 369.8% N.A. N.A. N.A. -104.7%

34,760.2 3,099.0 37,859.2 63,826.2

34,501.0 3,077.0 37,578.0 63,446.7

0.8% 0.7% 0.7% 0.6%

21,322.2 2,498.3 23,820.6 61,277.9

63.0% 24.0% 58.9% 4.2%

5

Non-operational gain (loss) items are reversal of allowance for loss on diminution in value of projects, reversal for allowance for impairment of assets, gain on debt settlement, gain on deposit as guarantee for debt settlement, gain on debt restructuring, loss on allowance for impairment, loss on exchange.

BTS GROUP FINANCIAL SUMMARY (CONSOLIDATED) Our City Our Future

2

Investor Relations Quarterly Review: Issue 4

BTS Group Holdings Plc st

4Q 10/11

(Full Year and 3 months ending 31 March 2011)

Cash Flow Statement (THB mn)

4Q 10/11

3Q 10/11

%QoQ

FY 10/11

FY 09/10

% YoY

Income (loss) before tax

(31.1)

61.2

-150.8%

451.9

5,761.7

-92.2%

70.8

69.4

2.1%

260.9

186.6

39.8%

256.5 461.8 (275.9) 558.6 (484.8) (21.4) 3.6 537.9

251.8 316.5 (114.2) 140.1 (336.4) (57.6) 5.0 335.9

1.8% 45.9% N.A. 298.6% N.A. N.A. -28.5% 60.2%

926.6 980.2 (343.9) 637.9 (1,486.2) (146.0) 11.6 1,293.0

952.6 (4,332.1) (309.3) (64.2) (563.2) (88.2) 2.3 1,546.2

-2.7% N.A. N.A. N.A. N.A. N.A. 409.3% -16.4%

(92.5) (164.1)

0.4 (906.6)

-23463.0% N.A.

(1,325.1) (1,103.9)

(1,075.7) (1.0)

N.A. N.A.

(578.7)

(572.7)

N.A.

(1,639.2)

(866.7)

N.A.

(0.1)

(0.4)

N.A.

5.8

(0.4)

N.A.

0.0 (275.9) (1,111.3)

0.0 125.2 (1,354.1)

N.A. -320.3% N.A.

(20,665.7) (66.4) (24,794.5)

(1,402.7) (471.5) (3,818.1)

N.A. N.A. N.A.

(717.6) 203.1

0.0 1,330.3

N.A. -84.7%

(717.6) (20,760.9)

(2.7)

Cash paid for long-term loans Cash received from issuance of ordinary shares Cash received from issuance of convertible debentures Others Net cash from (used in) financial activities

(8,755.5) 0.0

(1.8) 0.0

N.A. N.A.

22,541.4 12,837.5

91.5 -

N.A. N.A. 24525.6 % N.A.

10,000.0 (1,000.0) (270.0)

0.0 (6.4) 1,322.1

N.A. N.A. -120.4%

10,000.0 (1,118.1) 22,782.4

309.3 398.2

N.A. -461.5% 5622.0%

Net increase (decrease) in cash Cash at beginning of the period Cash at the end of the period

(840.2) 2,665.6 1,825.4

272.0 2,393.7 2,665.6

(652.3) 2,477.7 1,825.4

(1,873.7) 4,351.4 2,477.7

Key financial ratios

4Q 10/11

4Q 09/10

FY 10/11

FY 09/10

Profitability ratios Gross profit margin (%) Overhead expenses to sales ratio (%) Operational EBIT margin (%) EBITDA margin (%) EBT margin (%) Net profit margin (%) ROA (%) ROE (%)

43.8% 18.4% 29.0% 45.6% -1.85% -3.23% -0.09% -0.14%

45.8% 21.7% 27.0% 53.9% 25.1% 24.0% 0.68% 1.75%

43.0% 20.4% 24.55% 47.5% 6.6% 5.1% 0.54% 0.91%

41.9% 19.4% 24.61% 69.1% 53.4% 52.8% 9.29% 23.89%

Leverage ratios Total liability to total asset (times) Total liability to total equity (times) Net debt to equity (times) Interest coverage (times)

0.41x 0.69x 0.55x 0.93x

0.61x 1.57x 0.44x 3.20x

0.41x 0.69x 0.55x 1.28x

0.61x 1.57x 0.44x 11.56x

Per share ratios 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)

-0.001 0.010 -0.005 1.01 0.68

0.007 0.009 -0.003 0.96 0.43

0.006 0.024 -0.048 1.01 0.68

0.102 0.028 -0.007 0.96 0.43

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 in advances for asset acquisitions Cash paid for purchases of property, plant and equipment Cash paid for purchases of condominiums and fixtures for lease Cash paid for purchase of investment in subsidiaries Others Net cash used in investing activities Dividend paid Increase in long-term loans

Our City Our Future

3

Investor Relations Quarterly Review: Issue 4

BTS Group Holdings Plc st

4Q 10/11

(Full Year and 3 months ending 31 March 2011)

Financial Highlights Annual • • •

• •

Quarterly

Total operating revenue of THB 5,894.4mn in FY 10/11, representing growth of 4.7% YoY Operating EBIT margin remained at 24.6% in FY 10/11, compared to FY 09/10 New historic high ridership on BTS SkyTrain achieved; total annual ridership of 145.2mn passengers in FY 10/11, but growth limited to 0.5% YoY due to political demonstrations New record revenue from Media business achieved; THB 1,369.9mn in FY 10/11, 24.5% growth YoY Net income attributable to equity holders of the parent of THB 284.9mn weighed down by finance costs

• • • • •

Total operating revenue of THB 1,582mn in 4Q 10/11, representing growth of 14.3% YoY Operating EBIT margin of 29.0% in 4Q 10/11, compared to 27.0% in 4Q 09/10 Quarterly ridership of 39.3mn passengers; representing 5.6% growth YoY and 0.8% decline QoQ New average weekday ridership record of 509,106 passengers in March 2011 Net loss attributable to equity holders of the parent of THB 76.5mn, compared to net income attributable to equity holders of the parent of THB 407.5mn in 4Q 09/10 weighed down by finance costs

As the acquisition of the shares of BTSC and its subsidiaries was considered to be a business combination under common control, the Company has restated the consolidated and separate financial statements for the year ended 31 March 2010 and for the three-month and nine-month periods ended 30 December 2009, as if BTSC and its subsidiaries, acquired in May 2010, had been a subsidiary of the Company since it was established.

Annual Performance – FY 10/11 For FY 10/11, operating revenue of the Company and subsidiaries (together the “Group”) increased 4.7% to THB 5,894.4mn, with increased revenues from mass transit and media offset by a reduced performance in the property business. Revenues from mass transit, media, property and services contributed 65.5%, 23.2%, 9.5% and 1.7% of total operating revenues respectively and more details can be seen in the breakdown by business unit.

Operating Revenue (THB mn)

2

2

FY 10/11

% of Total

FY 09/10

% Change (YoY)

FY 10/11 3 margin

FY 09/10 margin

Mass Transit

3,860.8

65.5%

3,679.6

4.9%

42.5%

40.9%

Media

1,369.9

23.2%

1,100.2

24.5%

64.4%

68.0%

562.6

9.5%

849.3

-33.8%

-8.1%

12.1%

101.0

1.7%

1.7

5819.7%

52.6%

N.A.

5,894.4

100.0%

5,630.8

4.7%

42.96%

41.90%

1

Property Services TOTAL

1

1

2

1

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, and Construction & Services Businesses, but excludes Service income related to Thana City Sports & Golf Co. Ltd., which is classified as Services Business 2 Total excludes other income of THB 936.2mn (FY10/11) from interest income, revenue from rights of claim, gain on debt settlement, gain on deposits of assets as guarantee for debt settlement and others and other income of THB 5,151.2mn (FY09/10) from management income, interest income, revenue from sale of right claim, reversal of allowance for loss on diminution in value of projects, reversal of allowance for impairment of assets, gain on debt settlement, gain on deposits of assets as guarantee for debt settlement, gain on debt restructuring, interest income and others 3 Gross profit margin

Cost of sales totaled THB 3,362.1mn, a 2.8% increase YoY mainly on account of the media business where costs increased 38.7% as a result of the higher revenue from modern trade. Gross profit increased by THB 173.2mn or 7.3% to THB 2,532.3mn and gross profit margin increased correspondingly to 43.0% from 41.9%. Selling & administration expenses increased THB 112.9mn or 10.0% YoY primarily from increased marketing costs in the property business but also from higher payroll expenses.

Consequently, operational EBIT rose by 4.3% to THB 1,498.9mn; while, the corresponding EBIT margin remained at 24.6% compared to FY 09/10. Finance costs bore a heavy burden on the Group owing largely to interest expenses and fees related to the BTSC share acquisition.

Total finance costs rose by THB 1,056.4mn or 193.7% to THB 1,601.9mn. This, together with non-recurring revenue of THB 936.2mn (versus THB 5,151.2mn in FY 09/10) meant that net profit for the year was THB 345.6mn compared to THB 5,691.6mn in the previous year.

Our City Our Future

4

Investor Relations Quarterly Review: Issue 4 4Q 10/11

BTS Group Holdings Plc st

(Full Year and 3 months ending 31 March 2011)

In FY 10/11, key non-recurring items were THB 171.4mn for costs related to business combination under common control (legal and advisory fees related to the acquisition of BTSC) and THB 723.4mn of gains related to debt settlement.

Cash flow from operations increased 35.8%% to THB 2,981.0mn on account of reduced working capital requirements (higher accrued costs of construction, lengthened payables and higher other current liabilities). However, cash flow from investing activities increased considerably to THB 24,794.5mn primarily on account of the acquisition consideration for BTSC (THB 20,655.7mn) but also as the Group invested in new rolling stock and invested in its real estate business. This investing activity was supported primarily by the issuance of new shares during the course of the year (THB 12,837.5mn) but also from the issuance of long-term debt (net increase of THB 1,780.5mn) and convertible bonds (THB 10,000mn). During FY 10/11 the Company also paid a dividend of THB 717.6mn and as a result the cash reduced by THB 652.3mn to THB 1,825.4mn Total assets stood at THB 63,826.2mn, a 4.2% increase from End March 2010. The key changes in the structure of the balance sheet (such as increase in shareholders’ equity from THB 23,820.6mn to THB 37,859.2mn, decrease in ‘Ordinary shares to be issued for business combination under common control’ from THB 19,378.8mn to THB 0mn) are as a result of the re-statements of accounts in relation to the acquisition of shares in BTSC as a business combination under common control, and these are explained in more detail in the Notes to the financial statements. The Group also saw an increase in fixed assets by 4.8% or THB 2,565.7mn as a result of the investment in BRT cars, investment in signaling system, new land at Phayathai as well as construction progress on the hotel at Surasak BTS station.

Our City Our Future

5

Investor Relations Quarterly Review: Issue 4

BTS Group Holdings Plc st

4Q 10/11

(Full Year and 3 months ending 31 March 2011)

Quarterly Performance – 4Q 10/11 Operating revenue rose 14.3% YoY to THB 1,581.6mn. The increase was from improved revenue across mass transit, media and services sectors. Revenues from the Mass Transit, Media, Property and Services businesses accounted for 65.6%, 22.4%, 9.7% and 2.2% of total operating revenues respectively.

Operating Revenue (THB mn)

2

1

Mass Transit Media Property Services TOTAL

1

1

2

2

4Q 10/11

% of Total

4Q 09/10

% Change (YoY)

4Q 10/11 3 margin

4Q 09/10 margin

1,038.1

65.6%

938.8

10.6%

44.9%

41.7%

354.6

22.4%

288.6

22.9%

61.3%

60.1%

153.7

9.7%

155.0

-0.9%

-5.5%

44.1%

35.3

2.2%

0.9

3654.9%

48.4%

100.0%

1,581.6

100.0%

1,383.3

14.3%

43.8%

45.8%

1

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, and Construction & Services Businesses, but excludes Service income related to Thana City Sports & Golf Co. Ltd., which is classified as Services Business 2 Total excludes other income of THB 107.2mn (4Q 10/11) from interest income and others, revenue from rights of claim of THB 2.9mn, gain on exchange rate of THB 9.7mn

3 Gross profit margin

Total cost of sales rose by 18.6% to THB 889.2mn from THB 749.5mn in 4Q 09/10 (following an increase in operating revenue) hence the Group saw a slight decrease in its gross margin to 43.8% compared with 45.8% in the previous year. Selling and administrative expenses decreased 1.8% or by THB 5.6mn to THB 311.0mn. In addition, the group realised a gain on exchange of THB 9.7mn in 4Q 10/11 in relation to an accounting policy for the Euro component of the advance payment for new rolling stock (35 middle cars).

4

Although operational EBIT grew by 24.2% YoY to THB 489.9mn, (from THB 394.4mn in 4Q 09/10), finance costs remained a heavy burden, rising to THB 473.5mn in 4Q 10/11 (compared with THB 196.8mn in 4Q 09/10). Weighed down by this finance costs, the Group reported a net loss of THB 54.5mn (versus net profit of THB 416.3mn in 4Q 09/10); a decline of THB 470.8mn or 113.1% compared with 4Q 09/10. Net loss attributable to equity holders of the parent was THB 76.5mn. Besides operational items, the Group had non-recurring expenses which is expenses relating to business under common control THB 60.1mn.

4 operational EBIT excludes gain on revenue from sale of right of claims (THB 2.9mn in 4Q 10/11, THB 59.0mn in 4Q 09/10),gain (loss) on exchange (THB 9.7mn in 4Q 10/11, THB (10.5)mn in 4Q 09/10), reversal of allowance for loss on diminution in value of project (THB 0mn in 4Q 10/11, THB 45.6mn in 4Q 09/10), reversal of allowance for impairment of assets (THB 0mn in 4Q 10/11, THB 167.0mn in 4Q 09/10), and loss on allowance for impairment of assets (THB 0mn in 4Q 10/11, THB 24.9mn in 4Q 09/10)

Our City Our Future

6

Investor Relations Quarterly Review: Issue 4

BTS Group Holdings Plc st

4Q 10/11

(Full Year and 3 months ending 31 March 2011)

KEY BUSINESS UNIT UPDATES

MASS TRANSIT (Full year commentary)

(Quarterly Commentary)

Total revenue from our mass transit business increased by 4.9% YoY to THB 3,860.8mn. Net fare-box revenue increased 1.7% to THB 3,544.8mn with the result of 0.5% ridership growth and a 1.2% growth in the average fare. Natural YoY ridership growth of 5.6% (for the last 9 months of the year) was offset by the closure and interruption of the SkyTrain system during April and May 2010. It is estimated that revenue loss from the 8 days service closure and 19 days partial closure amounted to THB 170mn. That fare-box revenue for the year still increased is testament to the strength of our core business. Total annual ridership was 145.2mn passengers (versus 144.5mn in FY 09/10) and the average fare for the year rose slightly to THB 24.44 / trip (versus THB 24.15 in FY 09/10).

In 4Q 10/11, total quarterly ridership reached 39.3mn passengers, a 5.6% increase compared to 4Q 09/10 and a 0.83% decrease compared to 3Q 10/11 (due to fewer days in 4Q compared to 3Q).

Average weekday ridership also reached a new record (489,762 passengers per weekday) in 4Q 10/11 compared to the previous record (481,632 passengers per weekday) achieved in 3Q 10/11.

The new record weekday ridership was as a result of several factors including the introduction into full service of the new 4-car trains.

Income from train operating management also showed strong growth, rising 62.1% YoY to THB 316.0mn. This is on account of the commencement of operations of the Bus Rapid Transit (BRT) system which BTSC began to operate from May 2010.

Cost of fare box for the year decreased by 3.0% to THB 2,051.2mn.

The decrease in cost of fare box was due to reduced maintenance costs. Cost of train operating management rose 186.1% to 167.1mn due to the commencement of BRT operations.

The above performance is reflected in Q4 10/11 fare-box revenues, which grew 7.0% YoY to THB 958.7mn. O&M revenue also rose by 84.6% to THB 79.4mn YoY due to contribution from the Bus Rapid Transit (BRT) operating contracts. Despite the increase in farebox revenue YoY, cost of farebox slightly fell by 0.1% to THB 534.1mn and the gross profit margin improved to 44.9% (compared to 41.7% in 4Q 09/10 and 40.7% in 3Q 10/11). Although SG&A expenses increased by 13.5% YoY (declined 13.2% QoQ), the EBIT margin of the mass transit business improved YoY to 32.0% from 29.0% (YoY) and 25.8% (QoQ).

In March 2011, ridership reached a monthly record of 14.4 million passengers (or 509,106 passengers per weekday).

Mass transit SG&A increased 1.5% or by THB 7.6mn to THB 527.3mn.

Payroll & staff benefits increased by THB 27.6mn or 27.3% YoY on account of an increase in BRT staff. Depreciation and amortization also decreased by THB 57.8mn or 5.9% YoY to THB 972.3mn primarily due to the adjustment of ridership base used for depreciation calculation.

Total ridership Average weekday ridership Average fare price (THB) Historical Monthly Ridership

Our City Our Future

4Q 10/11 39,338,414

4Q 09/10 37,251,926

YoY 5.60%

3Q 10/11 39,669,101

QoQ -0.83%

489,762

467,420

4.78%

481,632

1.69%

24.42

24.07

1.42%

24.20

0.90%

Historical Average Weekday Ridership

7

Investor Relations Quarterly Review: Issue 4

BTS Group Holdings Plc st

4Q 10/11

(Full Year and 3 months ending 31 March 2011)

MEDIA (Full year commentary)

(Quarterly Commentary)

Media business revenue saw excellent operational results with total revenue increasing 24.5% or THB 269.7mn to THB 1,369.9mn. The primary reason for the increase was revenue from the modern trade sector which rose THB 208.7mn or 97.7% to THB 422.5mn as a result of new contracts signed and increased occupancy on existing contracts. Further, revenues related to office building media grew THB 58.9mn or 317.9% YoY on account of both the full year effect (PoV Media was acquired in October 2009) as well as synergies realised with existing sales platform. Revenue from BTS-related advertising grew slightly to THB 873.9mn.

In 4Q 10/11, the Group’s Media business revenue reached THB 354.6mn; a 22.9% or THB 66.0mn increase YoY and a 4.3% or THB 15.8mn decrease QoQ. The majority of the YoY growth is as a result of aggressive expansion in the modern trade sector (new contract for Tesco FM as well as mature occupancy for Tesco LCD and Carrefour static media) as well as the benefits from the Point-ofView (PoV) acquisition. The QoQ decline is as a result of seasonal reduction in BTS-related revenue.

Cost of sales increased 48.8% or THB 148.8mn to THB 485.4mn. Key increases relate to costs of modern trade, which saw a 69% or THB 134.5mn and costs related to Office building sales (up THB 23.3mn) both of which rose on the back of higher sales. Media SG&A decreased only 0.47% or THB 1.1mn as the business realised economies of scale. Higher sales and marketing expenses (up THB 25.1mn or 79.4% on higher sales) were offset by a reduction in other expenses (down 42.7% or THB 24.1mn due to lower unclaimed tax expense and professional fee).

The media business gross profit margin increased to 61.3% in 4Q 10/11 from 60.1% in 4Q 09/10. Also, the operational EBIT margin showed improvement to 40.6% (from 31.1% in 4Q 09/10) thanks to a considerable shrinking in selling and administrative expenses to sales ratio to 20.6% (from 29.0% in 4Q 09/10). However, selling and administrative expenses to sales ratio increased QoQ due to marketing expenses of the new products.

As a result of the increased contribution from lower margin modern trade business, the gross profit margin declined from 68.0% to 64.4% but the operating profit margin remained stable at 48.2%.

Contribution of Revenue (Media business) Annual

36%

23%

64%

77%

FY 10/11

Quarterly

38%

36%

27%

62%

64%

73%

4Q 10/11

3Q 10/11

4Q 09/10

FY 09/10

BTS related business revenue

BTS related business revenue

Non-BTS related business revenue

Non-BTS related business revenue

Gross Profit Margin (Media business) FY 2010/11 Gross profit margin (overall)

10

Gross profit margin (BTS-related)

10

Gross profit margin (non BTS-related)

10

FY 2009/10

4Q 10/11

3Q 10/11

4Q 09/10

64.6%

69.4%

61.6%

66.5%

65.2%

86.4%

86.6%

84.7%

87.0%

85.4%

26.1%

10.6%

23.9%

30.4%

11.8%

Gross profit margin (overall and BTS-related) excludes the cost of concession payable to BTSC

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Investor Relations Quarterly Review: Issue 4

BTS Group Holdings Plc st

4Q 10/11

(Full Year and 3 months ending 31 March 2011)

PROPERTY (Full year commentary)

(Quarterly Commentary)

In FY 10/11, revenue from the group’s property business declined 33.8% or THB 286.6mn to THB 562.6mn. This was primarily the result of a decline in revenue from construction services which fell THB 284.4mn or 52.1% to THB 261.8mn due to a wind-down in the number of units transferred in relation to the Baan Aur Athorn (lowcost housing) project. This was offset by sales of real estate which increased by THB 46.1mn or 45.7% as the company accelerated sales of its Thana city project.

The Group’s Property business saw revenues decrease by THB 1.3mn (or 0.86%) to THB 153.7mn in 4Q 10/11 compared with the corresponding period in the previous year. This was as a result of less revenue recognition from Bann Aur-Arthorn (THB 70.4mn in 4Q 10/11 versus THB 73.1 mn in 4Q 09/10) . However, revenue from Thanacity Project increased significantly due to a policy to accelerate sales (THB 29.7 mn in 4Q 10/11 versus THB 19.1 mn in 4Q 09/10).

There was an increase in property-related sales and administrative expenses of 6.0% (from THB 69.4mn to THB 73.5mn).

Property cost of sales fell THB 138.3mn or 18.5% as cost of construction services fell (THB 256.7mn or 49.8%) but this was offset by an increase in cost of sales of real estate which rose THB 111.5mn or 104.9% to THB 217.8mn. Property selling and administration expenses rose THB 116.7mn or 73.9% to THB 274.2mn. The increase was driven by the higher marketing expenses related to the launch of Abstracts condominium brand (THB 111.7mn in FY 10/11 compared to THB 0mn in FY 09/10).

Presold units 51%

Available units 49%

Presold units as of Mar 2011 (Tower A) Average Selling Price/Sq.m. (THB) between Jan – Mar 2011

77,166

Type: Mid-High End Condominium Location: Phahonyothin Road, North Bangkok. 250m from new BTS station

Studio room 11.16%

Two bedroom 6.03%

Tower A Tower B Tower C Total

One bedroom 82.81%

% of total presold units Presold by unit type (Tower A) # Units 1,012 1,012 1,012 3,036

GFA (sqm) NFA (sqm) 62,091 42,818 62,091 42,818 62,091 42,818 189,273 128,455

Site area : 33,420 sqm (20-3-55 rai) Project summary

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Investor Relations Quarterly Review: Issue 4

BTS Group Holdings Plc st

4Q 10/11

(Full Year and 3 months ending 31 March 2011)

Two bedroom 26% Available units 45%

Presold units 55%

One bedroom 74%

% of total presold units

Presold units as of Mar 2011 Average Selling Price/Sq.m. (THB) between Oct 2010 – Mar 2011

77,115

Presold by unit type

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

# Units 28 28 28 28 112

GFA (sqm) NFA (sqm) 2,270 1,247 2,270 1,247 2,270 1,247 2,270 1,247 9,082 4,989

HOTELS: Construction of the hotel adjacent to BTS Surasak station reached 70.0% and remains on track to open in the third calendar quarter of 2011.

Hotel at BTS-Surasak Station Type: Four Star Hotel

Construction Progress

70.0 70.0% Room model

Our City Our Future

Location : Sathorn Road, Direct access to BTS Surasak Site area : 3,928 sqm (2-1-57 rai) Expected Completion : Construction: July 2011 Soft Opening: Sep 2011 Project summary

Construction model

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Investor Relations Quarterly Review: Issue 4

BTS Group Holdings Plc st

4Q 10/11

(Full Year and 3 months ending 31 March 2011)

SERVICES (Full year commentary)

(Quarterly Commentary)

Our Services business recognised revenue of THB 101.0mn in FY 10/11 compared with THB 1.7mn in FY 09/10. The majority of the revenue contribution came from fee income from Thana City Golf course which completed renovation in November 2010.

Our Services business saw revenue rise to THB 35.3mn (compared to THB 31.1mn in 3Q 10/11 and THB 0.9mn 4Q 09/10). 4Q marks the continuation of the peak season at Thana City Golf, and the Group also benefited from marketing events investment in the previous quarter. Despite a gross profit margin decreased to 48.4% in 4Q 10/11 (from 58.8% of 3Q 10/11), selling and administrative expenses decreased to THB 16.3mn in 4Q 10/11 (from 21.4mn in 3Q 10/11) due mainly to decrease in employee benefits expense.

Absolute hotel Services Co. Ltd (AHS) announced the opening of Absolute Hotel Services Middle East. The purpose of this joint venture Company is to provide hospitality management and consultancy services for the greater Gulf region, from Oman in the south, Saudi Arabia in the west, Syria in the north and Iran in the East. AHS Middle East are aiming to operate a minimum of six properties under the U Hotels & Resorts and Eastin brands within 2011.

New contracts secured U Hotels & Resorts

Eastin Hotels / Residence and Eastin Easy

India: U Lonavala (opening 2013)

Middle East: Eastin Le Mirage Residences Doha Qatar (re-launched 2011)

Middle East: U Le Mirage Residence Doha Qatar (re-launched 2011)

Middle East: Eastin Le Mirage Suites Doha Qatar (re-launched 2011)

Vietnam: U Dalat (opening 2013)

Middle East: Easy Le Mirage Sharq Doha Qatar (re-launched 2011)

Bangkok Smart Card System Co. Ltd (BSS) BSS common ticketing system is still in the developing progress according to schedule and expects to have the trial run in July and will be available for public in Q4 this year (calendar year).

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Investor Relations Quarterly Review: Issue 4 4Q 10/11

BTS Group Holdings Plc st

(Full Year and 3 months ending 31 March 2011)

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.

January 2011: BTS Group’s Thai Elephant Conservation Project

The Management team of BTS Group, led by Khun Keeree Kanjanapas Chairman of Board of Directors, brought a group of press to present a cash donation of THB 1,499,999, to help support the operations of the Thai Elephant Conservation Centre in patronage of Her Royal Highness Princess Galayani, Lampang province. In addition, BTS Group donated educational aids and sport equipments to students of Mae Tarn Noi Primary School in Lampang province as well.

February 2011: BTS Group presents CSR Day

BTS Group Holdings Public Company Limited organised a seminar under the CSR Day Project attended by staff of all companies in BTS Group at BTSC Head Office, Phaholyothin Road. The purpose of the meeting was to educate staff on corporate social responsibility guidelines concerning the environment, society and good governance. Dr. Pipat Yodpreutikarn, director of Thaipat Institute, led the seminar.

March 2011: BTS Group launched new CSR Project

Following the great success in supporting operations of the Elephant Conservation Project of H.M. Queen Sirikit in Lampang last year. In order to continue with a sustainable CSR programme, BTS Group is planning to organize a follow-on project, entitled “2nd BTS Group Thai Elephant Conservation Project”, aimed at raising funds for the construction of a new hospital for elephants in Krabi province. This new hospital will be the centre for providing first aid treatment to injured elephants, serving 14 provinces in the south of Thailand.

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Investor Relations Quarterly Review: Issue 4

BTS Group Holdings Plc st

4Q 10/11

(Full year and 3 months ending 31 March 2011)

SUMMARY COVERAGE AND ANALYST RECOMMENDATIONS Company Name

Recommendation

KGI Securities PHATRA Securities Kim Eng Securities Bualuang Securities Asia Plus Securities Capital Nomura Securities KTZMICO Securities Phillip Securities DBS Vickers Securities

Outperform Buy Buy on weakness Buy Buy Buy Buy Buy Buy

Target Price 0.97 1.05 0.79 0.91 1.07 1.05 0.98 0.92 0.89

Report Date 19-Apr-11 12-Apr-11 17-Feb-11 17-Feb-11 17-Feb-11 7-Feb-11 15-Feb-11 5-Apr-11 17-Feb-11

2011/12 Sales Forecast (THB mn) 6,909 8,299 7443 8,683 7,427 7,019 6,972 7,459 6,738

Analyst Name Suchot Tirawannarat Paveena Chewananth Daowadee Teera-apisakkul Chaiyatorn Sricharoen Suwat Wattanapornprom Raenoo Bhandasukdi Terapatr Mathanukraw Siam Tiyanont Sombat Agekavanpattana

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 1 TST Tower, 21 Viphavadi-Rangsit Rangsit Rd, Jompol, Jatujak, Bangkok 10900

The Thailand Securities Depository Co., Ltd. (TSD) 62 The Stock Exchange of Thailand Building, Rachadapisek Road, Klongtoey, Bangkok 10110, Thailand Website: http://www.tsd.co.th Telephone: Facsimile: E-mail:

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

Telephone: Email:

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

Financial Calendar: The Quarter Ahead Event End of FY 2010/11 FY 2010/11 Earnings Released Analyst Meeting End of 1Q 2011/12 1Q 2011/12 Earnings Released

Date 31 March 2011 30 May 2011 1 June 2011 30 June 2011 15 August 2011

Notes 1

th

data as of 27 May 2011. Source: Company and Bloomberg th based on exchange rate of 30.58 as of 30 May 2011 3 Assumes no cost of concession payable by VGI to BTSC 4 Source: Bloomberg, data as of 30th May 2011 2

5

Source: BTS Group Holding Public Co.,Ltd. as of 15 March 2011

This document has been prepared and distributed by the Investor Relations Department of BTS Group Holdings Plc. (“BTSG�) solely solely for information purposes. It does not represent or constitute an n 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 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 BTSG or any of its agents, or all of their respective affiliates, or representatives shall have any liability (in negligence egligence 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 ssumes no duty to confirm, revise or update the information. Certain statements in this document may be deemed to contain forward-looking forward looking statements, including the statements included or incorporated with the words "believe", "anticipate", "estimate", "target", get", 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 looking statements are not guarantees of future performance 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 forward looking statements are made. Thus, BTSG assumes no responsibility and makes no representations represent with respect to the accuracy and/or completeness of the forward-looking forward looking statements. BTSG undertakes no obligation to publicly update or revise any forward-looking forward statements, whether as a result of new information, on, future events or otherwise.

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