bts group holdingspclbts.listedcompany.com/misc/slides/quaterlyresult... · second quarter 2010/11...

BTS Group Holdings PCL

Second quarter 2010/11 result presentation17 November 2010

Disclaimer

Investment involves risk. Prospective should understand the characteristics of Securities and study

information about BTS Group Holding Public Company Limited (the “Company”) before making a decision to

invest in Securities.

This Presentation is not intended to provide the basis for any investment decision, nor to substitute your own

analysis and investigation, and should not be considered as a recommendation to any recipient of this

Presentation. Some statements made in this presentation are forward-looking statements, which are subject

to various risks and uncertainties. These include statements with respect to the Company’s corporate plans,

strategies and beliefs and other statement that are not historical facts. These statement can be identified by

the use of forward-looking terminology such as “may”, “will”, “expect” , “intend”, “estimate”, “continue”,

Second quarter 2010/11 result presentation2

the use of forward-looking terminology such as “may”, “will”, “expect” , “intend”, “estimate”, “continue”,

“plan” or other similar words. The statements are based on the assumptions and beliefs of the Company’s

management in light of the information currently available to the Company. These assumptions involve risks

and uncertainties which may cause the actual results, performance or achievements to be materially different

from any future results, performance or achievements expressed or implied by such forward-looking

statements. Nothing in this Presentation is, or should be relied on as promise or representation of the

Company as to the future.

2Q 10/11 Overview

Operating revenue 2Q 10/11 P&L snapshot 2Q 10/11 (THB mn)

61.4%18.9%

19.7%0.0%

Mass

transit

Media

23.1%

Property

9.2%

Services

1.5%

2Q 09/10

Sales 1,495

Other income 728

Total revenue 2,223

Net profit 603


Revenue comparison (YoY) Revenue comparison (QoQ)

transit

66.2%2Q 10/11

893

275 286

0.3

990

345

137 23

Mass transit Media Property Services

2Q 09/10 2Q 10/11

794

300

90 9

990

345

137 23

Mass transit Media Property Services1Q 10/11 2Q 10/11

Net profit 603

2Q 10/11 Highlights

Mass transit

� Recovery of quarterly ridership from political disturbance (Jumped 33.0%

QoQ to 37.8 mn passengers)

� A full quarter revenue contribution from BRT

Media

� Strong growth of revenue contribution from modern trade and office

building business

Major development in 2Q 10/11


building business

� Clear positive synergy on POV acquisition

Property

� Launching of Abstracts brand (Abstracts Phahonyothin Park, Abstracts

Sukhumvit 66/1)

� Cost increase from asset impairment (Thana City) and investment in

Abstracts brand

Services

� Solid revenue growth of Thana City Golf

� Continued expansion of Hotel Management Services

Mass transit business

Revenue breakdown Revenue growth

Fare box

91.93%

O&M

S7&S8

4.47%

O&M BRT

3.60%(THB 36 mn)

(THB 44 mn)

(THB 910 mn)

893 990

794

990

+10.8% YoY +24.7% QoQ


• 2Q 10/11 average ridership grew 6.2% YoY and

23.4% QoQ to 464,259 passengers

• 2Q 10/11 average fare price remains strong at

THB 24.10 compared to THB 24.0 in 2Q 09/10.

• BRT revenue expanded 5.7% QoQ to 35.6mn in

2Q 10/11.

Gross profit margin Key factors

(THB 910 mn)2Q 09/10 2Q 10/11 1Q 10/11 2Q 10/11

43.3%

43.0%

43.8%

43.0%

2Q 09/10 2Q 10/11 1Q 10/11 2Q 10/11

Historical Ridership

4.9%6.4%

12.9%10.2%

11.5%

6.5%

-4.5%0.0%

4.8%6.2%7.7%

-10.0%

0.0%

10.0%

20.0%

350,000

400,000

450,000

500,000

pa

sse

ng

ers

/mo

nth P

asse

ng

er

4.9%9.0%

14.4%12.4%14.4%

5.3%

-9.5%

-0.2%8.4%

4.5%

6.9%

-20.0%

0.0%

20.0%

10,000,000

12,000,000

14,000,000

pa

sse

ng

ers

/mo

nth

Pa

ssen

ge

r

Average weekday ridership Total monthly ridership


-41.9%

-50.0%

-40.0%

-30.0%

-20.0%

200,000

250,000

300,000

350,000

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Previous Year Last 12 months Passenger growth (YoY) (RHS)

To

tal

pa

sse

ng

ers

/mo

nth P

asse

ng

er

gro

wth

(Yo

Y)

-40.1%

-60.0%

-40.0%

-20.0%

6,000,000

8,000,000

10,000,000

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Previous Year Last 12 months Passenger growth (YoY) (RHS)T

ota

lp

ass

en

ge

rs/m

on

th

Pa

ssen

ge

rg

row

th (Y

oY

)

Media business


275

345 300

345

+25.6% YoY +15.2% QoQ

Ads BTS

49.67%Ads non-

BTS

29.01%

Space

Rental

10.37%

Service

10.96%

(THB 38.6 mn)

(THB 36.5 mn)

(THB 102.1 mn)

(THB 174.9 mn)


• Revenues contribution of non-BTS related

business expanded to 39% of total revenue due

to increasing in revenues from modern trade

and POV (1Q 10/11: 32%, 2Q 09/10: 22%)

• Overall gross profit margin increased to 65.6%

from 64.5% in 1Q 10/11


2Q 09/10 2Q 10/11 1Q 10/11 2Q 10/11(THB 102.1 mn)

68.7%

65.6%

64.5%

65.6%

2Q 09/10 2Q 10/11 1Q 10/11 2Q 10/11

*Consolidated basis

*Non-consolidated basis*Consolidated basis

Property business


286

137

90

137

-52.1% YoY+52.7% QoQ

Baan Aur

Ar Thorn

53.2%

Thana City

property

22.2%

Rental and

services

24.6%

(THB 72.9 mn)

(THB 33.7 mn)


• Revenue increased from 1Q 10/11 because of increasing sales of Thana City condominium

• Total costs increased 440% (THB 79.5 mn) to THB 102.8 mn due to provision for impairment at the amount of THB 81.6 mn and increased sales.

• Revenues from sales of Abstracts condominium not expected to be realised until 1Q 11/12 (calendar 2Q 2011)


2Q 09/10 2Q 10/11 1Q 10/11 2Q 10/11

6.5%

-44.0%

23.9%

-44.0%

2Q 09/10 2Q 10/11 1Q 10/11 2Q 10/11

(THB 72.9 mn)(THB 30.4 mn)

Services business


0.3

23

9

23 +7913.1% YoY +149.6% QoQ

Thana City

Golf

BSS Smart

Card

0%

(THB 22.6 mn)


• Revenue from Thana City Golf and Sport Club

increased from THB 0.3 mn (2Q 09/10) to THB

22.6 mn because of the beginning of high

season and more active marketing strategy


2Q 09/10 2Q 10/11 1Q 10/11 2Q 10/11

13.3%

8.2%

13.3%

2Q 09/10 2Q 10/11 1Q 10/11 2Q 10/11

Golf

100%

Capital structure

30 June 2010 30 September 2010

11,882 8,753

1,307

Debt

Long-term

debentures

Loan

Tranche B

Other

11,890 8,753

1,300

Debt

Long-term

debentures

Loan

Tranche B

Other

Unit: THB mn Unit: THB mn


36,089 EquityEquity

37,553 Equity

Other

Equity

Net debt-to-equity ratio

0.55x 0.52x

Effective interest rate

5.8% 5.8%

Summary of income statement

Income Statement (THB mn) 2Q 10/11 2Q 09/10 % YoY 1Q 10/11 % QoQ 1H 10/11 1H 09/10 % YoY

Sales 1,495 1,454 3% 1,192 25% 2,687 2,876 -7%

Other income 728 4,571 -84% 28 2468% 757 4,623 -84%

Total revenue 2,223 6,025 -63% 1,221 82% 3,444 7,498 -54%

COGS 964 873 11% 649 49% 1,613 1,708 -6%

Overhead expenses 332 290 14% 264 26% 596 528 13%

Other expenses - - N/A 111 -100% 111 - N/A

Income (loss) from investment in associates 0 (2) -131% (1) -146% (1) (2) -71%

2Q 10/11 income statement (THB mn)

Income (loss) from investment in associates 0 (2) -131% (1) -146% (1) (2) -71%

EBIT 927 4,860 -81% 196 373% 1,123 5,260 -79%

Interest expenses 344 104 231% 441 -22% 785 155 405%

EBT 583 4,756 -88% (245) -338% 338 5,104 -93%

Income tax 30 17 78% 18 69% 48 35 38%

Minority Interests 14 260 -95% 11 31% 24 275 -91%

Net profit (loss) 603 4,492 -87% (254) -338% 349 4,826 -93%

Net profit before non-recurring items (20) (28) -28% (260) -92% (280) 279 -200%

Non-recurring items 623 4,519 -86% 6 10682% 629 4,492 -86%


*Non recurring items

- 2Q 10/11 : 1) gain on deposit of assets as guarantee for debt settlement of THB 708.5 mn 2) Loss on exchange of THB 4.0 mn and 3) provision for impairment of asset of THB 81.6mn.

- 2Q 09/10 : 1) gain on debt restructuring of THB 4,527.9 mn 2) loss on exchange of THB 8.6 mn

- 1 Q 10/11 : 1) gain on exchange of THB 5.8 mn

Summary of balance sheet

(THB mn) Variance

30 Sep 2010 31 March 10 Amount %

Fixed Assets

Tangible Fixed Assets 54,673.7 53,154.5 1,519.2 3%

Intangible Fixed Assets 692.4 1,277.6 (585.2) -46%

Total 55,366.0 54,432.0 934.0 2%

Current Assets

Real Estate Development Costs 2,816.1 2,867.7 (51.6) -2%

Trade Debtors 447.2 527.2 (80.0) -15%

Other Current Assets 1,040.8 2,477.7 (1,437.0) -58%

Cash 2,393.7 973.1 1,420.5 146%

Total 6,697.8 6,845.8 (148.0) -2%

Total Assets 62,063.8 61,277.9 786.0 1%

Long term liabilities

Lease liabilities 0.0 0.0 0.0 0%


Lease liabilities 0.0 0.0 0.0 0%

Long term Debentures 11,890.1 11,873.6 16.4 0%

Long term loan 9,153.6 149.3 9,004.2 6030%

Other long term liabilities 120.4 102.9 17.5 17%

Total 21,164.0 12,125.9 9,038.1 75%

Short term liabilities

Short Term Loans 900.0 1,000.0 (100.0) -10%

Account payable 188.6 214.8 (26.2) -12%

Other ST Liabilites 2,258.4 2,960.9 (702.5) -24%

Payable from Subsidiary acquisition 0.0 21,155.7 (21,155.7) -100%

Total 3,347.0 25,331.4 (21,984.4) -87%

Total Liabilities 24,511.1 37,457.3 (12,946.2) -35%

Equity & Reserves

Equity 42,382.0 28,956.6 13,425.4 46%

Retained Earnings (4,829.3) (5,136.1) 306.8 -6%

Total 37,552.7 23,820.6 13,732.2 58%

Total Liabilities and Equity 62,063.8 61,277.9 786.0 1%

Summary of cash flow statement

2Q 10/11 2Q 09/10 Change % Change

EBT 647.2 4,768.9 (4,121.7) -86%

Depreciation and amortisation 303.2 278.7 24.5 9%

Adjustment to reconcile income (346.8) (4,399.5) 4,052.7 -92%

Movement in Operating Assets and Liabilities

Movement in Accounts Receviable 21.9 (104.2) 126.1 -121%

Movement in Real Estate Development Costs 2.3 43.9 (41.6) -95%

Movement in Other Operating Assets 4.8 (96.3) 101.1 -105%

Movement in Account Payable (6.6) 79.4 (86.0) -108%

Movement in Other Operating Liabilities 71.5 4.4 67.1 1540%

2Q 10/11 cash flow statement (THB mn)

Movement in Other Operating Liabilities 71.5 4.4 67.1 1540%

Total 93.8 (72.9) 166.7 -229%

Cash Generated From Operations 697.4 575.2 122.1 21%

Tax Paid (31.6) 25.6 (57.2) -223%

Capex (744.6) (1,287.9) 543.3 -42%

Other adjustments in investing activities 11.7 111.3 (99.6) -89%

Cash Available for Debt Service (67.1) (575.8) 508.7 -88%

Drawdown/(Repayment) of Debt Financing 1.2 11,943.3 (11,942.0) -100%

Interest Paid (327.6) (81.7) (245.8) 301%

Equity Received/(Repaid) 807.7 (1,293.8) 2,101.5 -162%

Other financing activities 3.6 (9,986.6) 9,990.2 -100%

Financing Cash Flows 485.0 581.2 (96.2) -17%

Net Cash Flow 417.9 5.4 412.4 7604%

Opening Cash/(Overdraft) 1,976.9 3,193.3 (1,216.3) -38%

Translation adjustments (1.1)

Net Cash Flow 417.9 5.4 412.4 7604%

Closing Cash (Overdraft) 2,393.7 3,198.7 (803.9) -25%


Outlook

� 12 new 4 cars trains are expected to begin the

operation in November 2010

� New signaling system installation will be

completed by the end of this year

� On Nut – Baring extension is expected to start

the operation in August 2011

� Continued sales of Abstracts Phahonyothin Park and Abstracts Sukhumvit 66/1

� Launch of Abstracts condominiums project at JJ Park and Phayathai – expected calendar 1Q 2011.

� Construction of Four Points by Sheraton adjacent to BTS Surasak reached 39% and remains on track to open in the calendar 3Q 2011

Mass transit Property

the operation in August 2011


� Continuing exploit synergy from POV Media

Group

� Enlarging position in modern trade and office

building advertising sector with new products

and contracts

� Expanding advertisements for 12 new trains ,

new extension stations and BRT

open in the calendar 3Q 2011

� BSS Smartcard is expected to pilot test common

ticketing system in calendar 2Q 2011 and launch

in calendar 4Q 2011

� Improved sales for Thana City Golf

Media Services

Q&A

15

Q&A

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