BTS Group Holdings Public Company Limited ($BTS)

Good afternoon, analysts and fund managers, and welcome to the BTS Group and BTSGIF Analyst Meeting for Fiscal Year 2025/'26. My name is [ Kan ] from the Investor Relations team, and I will be your moderator during this presentation. For this fiscal year has been a significant year for BTS Group marked by settlement of long outstanding O&M receivable from BMA alongside continued progress across the group. In today's session, we will begin with an overview of our business updates and financial performance followed by the Q&A session. Today, we are honored to welcome all the management team, starting from Khun Surapong, CEO of MOVE Business; Khun Daniel, CIO of BTS Group; Khun Chawadee, CFO of BTS Group; Khun Siriphen, Fund Manager of BTSGIF; Khun Chitkasem, CFO of VGI; Khun Soraya, Acting CEO and CFO of Rabbit Holdings, along with other members of the management and IR team. To start, I would like to hand over to Khun Daniel to recap on the financial performance for this fiscal year.

Thanks, [ Kan ]. Good afternoon, everyone, and thank you for joining us at the full year earnings call. We appreciate your continued interest in the company. I'll walk through the key highlights before handing over to the team for a more detailed discussion. With the business highlights, actually, the business highlights are you will be familiar with already. There's not too much new this quarter, but I'll run through them for habit's sake. So within our MOVE business, Green Line O&M debt outstanding settled, as you well know, cash increasing and giving us a stronger liquidity position. About THB 36 billion was received back in October 2025. and around THB 15 billion was allocated to debt reduction. For the pink and the yellow lines, the extension commenced operations on the 17th of June. And as you know, every year, we continue to receive the subsidy payment for the pink and the yellow lines, another THB 4.8 billion this year. On non-rail, the M81 Intercity Motorway commenced full operation in January. And for U-Tapao Airport, we received the NTP. Going on to MIX, again, earlier on in the year, entered into a media management agreement and investment in Plan B. So as you know there, we have streamlined our media management to Plan B, and we also included in that we increased our shareholding, which now stands around 23% -- from a VGI point of view, the key question there is always their strong liquidity position. So the strong liquidity position, they have cash of THB 21.1 billion or around 50% of the total assets. Going on to Match divestment update. So debt continues to reduce at Rabbit Holdings. They sold shares in Diplomat Prague. We also sold -- Rabbit also sold shares in its international school project to BTSG subsidiary for about THB 1.3 billion, and all proceeds were used to repay loans at a Rabbit Holdings level. Termination of a share purchase agreement to sell Vienna House Hotel Group business. So that resulted -- again, this was an update from previous quarter where the Buyer HR Group went into insolvency, and we managed to terminate the SPA before they went into insolvency so that we could take back the operations. So you will see Rabbit's results consolidating the performances of those hotels, but there's no material impact to Rabbit's operations. ROCTEC, again, a bit of a bright spot with continued growth in revenue and net profit for the year. Operating revenue increased 11% to THB 3.4 billion, and net profit was up 40% to THB 476 million. Over to the financial highlights. Profit and loss basically, we've seen higher revenue but bottom line weakness. Operating revenue up 25%, driven mainly by Match revenue going up by 124%. Recurring EBITDA, THB 11.9 billion, up 24% year-on-year. But at a net profit level, we've seen a net loss attributable to the company shareholders of THB 1.2 billion and a net loss of the company of THB 2.5 billion for the year. On the financial position, a stronger capital structure following the repayment of BMA debt. So cash and liquid investments ends up at THB 55.2 billion versus THB 44.1 billion as of the end of last year. Adjusted net debt to equity at 1.34x. So debt is still well below the covenant levels of BTS Group. However, it has touched up during the year. Now despite the strained profit and loss, as you do know on the cash flow, we do like to point out that cash flow is relatively stronger compared to the P&L, mainly due to the pink and the yellow line subsidies as well as the green line O&M. Over the year, you'll see we generated cash flow from operations of THB 36.5 billion, cash flow used in investments of THB 45.5 billion and cash flow used in financing of THB 1.5 billion. On the full year '25-'26 overview. Total revenue was basically flat year-on-year at THB 29 billion. If you look at the operating revenue, which looks at the operational performance of the three BUs and excludes interest income and dividend income and other nonrecurring items, that increased 25%. Gross operating profit was up by a similar quantum at 35% and recurring EBITDA also 24% up at THB 11.8 billion. Again, that was mainly due to the Match consolidation, which will come into the segmental analysis, but it was also offset by a reduced interest income of around about THB 1.6 billion. Both recurring net profit and net profitable attributable to shareholders are negative and substantially so. Why? Because apart from the operating performance above, SG&A of THB 6.9 billion, finance costs of THB 7.8 billion and income tax of about THB 2.2 billion. Reducing the loss was a share of profit, which actually grew 85% to THB 1.1 billion within this year. The margins, you can see clearly, and then other than that, the operating revenue breakdown, we have Match & Move at about 40% of operating revenue and MIX at 19% -- on to the cash flow snapshot. So we started the year with THB 30.4 billion in cash and ended up with about THB 20 billion in cash, a strong cash flow from operations in the blue column. As you can see, THB 36.5 billion, admittedly primarily driven by the repayment of the BMA debt. Those funds was largely used for investments in financial assets of around about THB 32 billion. That includes mainly increased in fixed deposits of THB 23 billion, but also net cash for PP&E and investment properties at around THB 13.3 billion. There was also net interest income received of THB 1.9 billion. Cash flow from financing, you can see is basically a wash at just a source of 1.5 -- sorry, a use of cash of THB 1.5 billion. So interest payments for THB 7.4 billion, purchases of investments in subsidiary of around THB 3.4 billion, offset by net cash received from loans from financial institutions of THB 4.3 billion and net cash from debentures of THB 3.2 billion, leaving the group with THB 19.8 billion at the end of the year, excluding liquid investments of around about THB 35 billion. So now for the segmental analysis, I'll hand over to...

Thank you, Khun Daniel. Good afternoon, everyone. I am Susie, I am from BTS Group, and I will walk you through the performance of our Move, Mix and Match business for this fiscal year. Starting with Move, the overall trend remained in line with the previous quarter. Operating revenue was THB 9.7 billion, remaining largely stable year-on-year. The flat performance was primarily due to the absence of THB 0.7 billion in construction revenue following the completion of the Pink Line extension. That said, this was partly offset by stronger revenue. Farebox revenue increased by 12% year-on-year, supported by continued growth in ridership on both lines. [indiscernible] retail leadership on the yellow line grew by 14%, while the pink line saw a 9% increase. O&M Revenue also continued its steady growth, rising 5% year-on-year to THB 7.6 billion as shown in the bottom bar of the chart. Meanwhile, share of profit from BTSGIF declined 35% year-on-year to THB 276 million, mainly due to the amortization of the fund investment as the concession expire in 2029. Moving on to MIX business. Operating revenue came in at THB 4.6 billion, down 8% year-on-year, mainly due to lower revenue across all business segments. Advertising revenue decreased by 16% from last year, largely due to the absence of Street Furniture revenue. Revenue from other media, including transit and office building media remained stable year-on-year. Excluding Street Furniture, utilization improved to 52%, up from 49% last year. Digital services revenue was slightly lower, mainly due to a decline in project management and online marketing service revenue. This was partly offset by higher interest income from Cash driven by growth in outstanding loans as well as higher lead generation revenue from Cash. And the last one, distribution revenue also saw a slight decline, mainly due to weaker performance at TURTLE, particularly in its retail business. Lastly, moving on to the MATCH business. Revenue increased to THB 9.4 billion, up 124% year-on-year, mainly driven by stronger performance from RABBIT and ROCTEC, together with the full year consolidation of the result in this fiscal year. [ RABBIT ] contributed THB 4.9 billion in revenue, while real estate revenue grew 158% to THB 4.3 billion, while financial services revenue increased 50% to THB 0.7 billion. ROCTEC also continued to perform well with revenue rising 11% year-on-year to THB 3.4 billion. In addition, other revenue rose 41% year-on-year to THB 1.3 billion, mainly driven by land sales at [indiscernible]. Turning to our financial position. As of the end of March, total assets remained largely unchanged from last year. The slight decline was mainly due to lower receivable under agreement with government authorities following the repayment of O&M debt by BMA together with a decrease in cash and cash equivalents. This was partly offset by higher other financial assets, PPE and investment property. For total liability increased mainly reflecting higher loan from financial institutions and additional long-term debentures, while other liability declined. Equity decreased by [ 6 ]% year-on-year, mainly due to lower noncontrolling interest. And finally, adjusted net debt was THB 134 billion, resulting in an adjusted net debt-to-equity ratio of 1.3x. And this is all about the financial performance. Next, I would like to hand over to Khun [ Kan tan ] for more business update.

Thank you, Khun. In this slide, we would like to provide an update regarding the full settlement of the O&M debt -- in October 2025, we received 36.4 billion from the second lawsuit and the remaining O&M debt. Of this amount, THB 15 billion has been used for debt repayment, while most of the remaining are now at bank deficit ready for cash flow requirement. Again, with this substantial cash inflow for liquidity has significantly strengthened. For this fiscal year-end, our CFO stood at THB 36.5 billion, mainly driven by the early set O&M debt repayment and also supported by the subsidy of the pink and yellow lines for the first 10 years of operation as well as interest income from our investments. Moving forward, we are supposed to receive the O&M payments on schedule as shown in the chart below. The growing O&M fee will contribute to stable and predictable cash inflow for the company. For the MOVE update, start with the ridership, the Pink Line record average weekday ridership of 72,000 trips per day, up 9% year-on-year. The Yellow line recorded 51,000 trips per day, up 14% year-on-year. Both lines also received the third government subsidy payment of THB 4.8 billion during the fiscal year. Moreover, the Pink Line extension has been running since June 2025. As of now, we have already seen the ridership reach over 10,000 trips per day during major events at Impact Muang Thong Thani. For non-rail business, the key update is official commitments of the Motorway M81 Bang Yai to Kanchanaburi on 16th January 2026 after a trial in October 2025. The Motorway is operated by BGSR81 in which BTS Group holds a 40% stake under a 30-year O&M contract with the Department of Highways. In addition, we are doing the same model for motorway M6 Bang Pa-in into Nakhon Ratchasima, which is expected to commence commercial operation within 2027. Next, move to the MIX business update by Khun [ Kakana ].

Thank you, Khun [ Kan tan ]. My name is [ Kakana ] from VGI IR team. I would like to share with you the key developments of the MIX business during full year '25, '26. First of all, I will start with the advertising business, VGI launched Platform Shelter, a new media platform combining station [indiscernible] areas and large LED display at the key BTS station includes Asok, Phrom Phong, Sala Daeng, and Chong Nonsi. This new format helps brands capture high purchasing power audiences at high-traffic locations. In addition, VGI collaborated with PlanB to launch bot packages, advertising media, including BTS Max, BTS Concourse and MOVE360. These packages integrate VGI's transit and office building media with PlanB's-of-home media to provide broader reach and strengthen brand awareness through our consumer daily journeys. During the year, VGI and PlanB also there were advertising campaigns for ring brands such as Pepsi Treats, Suntory TEA+ and Samsung Galaxy S26 Ultra. Moving to Digital Services. Rabbit Care launched the Rabbit Care mobile application, which received strong response with more than 100,000 downloads. Rabbit Care also expand into high-margin insurance products, including health, life, home and pet insurance. For Rabbit Cash, the loan portfolio increased to THB 1.4 billion, growing 30% year-on-year and 5% Q-on-Q. The portfolio consisted of 68% nano loans and 32% welfare loans. Rabbit Cash also continued to expand its welfare loan through partnership with organizations such as the Provincial Electricity Authority and Thailand Post Distribution Company Limited. Turning to Distribution. As of March 2026, TURTLE operated 29 shops across the BTS Green line, MRT Yellow line and outside the BTS network. TURTLE continued to focus on promotional campaigns through membership programs such as Xtreme Savings, member price and Turtle Club Plus to stimulate spending and enhance customer engagement. For its leasing business, leasing occupancy rate improved to 61.4% compared with 60.6% in the previous year. That concludes the MIX update. Thank you, and I will now hand over to Khun [ Pirohat ] for Match update.

Thank you, Khun [ Kakana ]. My name is [ Pirohat ] from the Rabbit IR team. Rabbit is a subsidiary of BTS Group Holdings, which holds approximately 68%. Starting with Rabbit Holding financial performance of the first quarter of 2026, Rabbit Holdings reported a total revenue of THB 1,500 million, decreasing slightly by 1% year-on-year. Gross operating profit was THB 700 million. Net profit was THB 400 million. This quarter, Rabbit has announced two important business events. In the first quarter of 2026, Rabbit divested its entire ordinary shareholdings in BTS Sansiri Holdings Nineteen Company Limited, known as JV19. This entity was a joint venture between Rabbit and Sansiri Public Company Limited, with Rabbit holding a 50% proportion of the registered capital, the share was sold to Century for a total consideration of THB 82 million. Prior to the completion of the transaction, Rabbit received a full repayment of shareholders' loans, along with outstanding accrued interest totaling THB 344 million from the JV19. This transaction resulted in the dissolution of JV19 as a joint venture company. Moreover, Rabbit has announced a collaboration with BE Education to establish Wycombe Abbey International School Bangkok, which marks the first campus of the school in the Southeast Asia region. The operations are managed by WA Education Services in which Rabbit holds a 25% equity stake. The Wycombe Abbey brand originated in England and had an academic history spanning more than 130 years with a reputation for educational excellence. The institution utilizes the IGCSE and A-level curricular to prepare students for top-tier global universities. The campus is located near the Thana City project and is designed to support development across academic studies, sport and extra curricular activities. Admissions are scheduled to open for students from pre-nursery to year 13 in August 2026. Next, I would like to hand over to Khun [ Panita ], [indiscernible] IR team for further MATCH update. Thank you.

Thank you, Khun [ Pirohat ]. Hello, everyone. I'm [ Panita ], ROCTEC IR. Please allow me to walk you through ROCTEC performance. Starting from the left-hand side of this slide. In this year, we delivered quality performance with operating revenues around THB 3.4 billion, up 11% growth. The key drivers remain our ICT solutions, which now represent around 85% of total revenue, supported by strong momentum in digital display solution, continued execution in transportation solutions and steady demand in integrated technology solutions. At the same time, our advertising business remains solid performance from our street furniture assets and higher revenue share allocation. On margin, we remain resilient. For this year, gross profit increased 9% year-on-year over THB 900 million, and gross profit margin maintained strong at 27.9%, although there was some margin pressure in project mix, but overall, margin performance remained intact. This reflects our strategy to capture scale today while building a stronger base of recurring engagement. At the bottom line, NPAT increased 40% growth to THB 476 million with net profit margin at 13.9%. The growth was supported by operating leverage from larger ICT revenue base, lower SG&A expense and the absence of one-off items recorded last year. Now if I turn to the right-hand side of this slide, this highlights some key achievements over this year that show how revenue growth translate into execution progress across our ICT pillars. In Transportation Solutions, for Thailand, growth was driven by the SRT Telecom network project that value THB 1.5 billion, which represents ROCTEC's flagship entry into Thailand's government infrastructure sector and remain this segment's most significantly credible portfolio during the year. For Hong Kong, we continue to deepen our position in Hong Kong rail ecosystem through universal training platforms and passenger information display system. Moreover, ROCTEC received Gold and Silver Award at the International Award at Geneva 2026 for IR station Hotline and MTR care app solutions that reinforce our in-house R&D and smart mobility capabilities. For integrated technology solutions, we expand our capabilities in smart rail network system and IoT solution. Importantly, many of these projects are linked to mission-critical infrastructure. We strengthened our position as an integrated ICT solution provider rather than stand-alone project. In Digital Display Solutions, we deliver landmark LED and digital sign project across high-traffic urban locations. This project demonstrates our ability to combine engineering capability with creativity execution, while this segment remain a key revenue driver supported by sizable orders, strategic partners and growing demand in digital media infrastructure. Overall, this year reflect quality growth with stronger earning delivery, ROCTEC successful scale our ICT platform, maintain margin resilience and strengthen our operating leverage. This reinforced our confidence in ROCTEC' long-term ICT growth trajectory and value creation. This is the ROCTEC performance in this year, and I would like to hand over to Khun [indiscernible] about BTS guidance...

Good afternoon, everyone. So looking back to the BTS Group performance and outlook. Looking ahead in this slide outlines our financial guidance for fiscal year '26/'27 year ending March '27. Overall, we are targeting approximately THB 27 billion in operating revenue, representing around 10% growth from the year ending March '26. For MOVE, O&M revenue remains our largest and most stable revenue and earnings contributor with revenue expected to reach THB 7.8 billion. We also expect continued ridership growth on the core green line network and the recurring cash subsidies from the pink and yellow lines will continue to support our cash flow generation. For MIX, we expect VGI revenue to reach THB 5 billion to THB 5.5 billion with gross profit to improve to 35% to 40%, supported by better utilization and operating efficiency. For MATCH, both Rabbit and ROCTEC are expected to maintain positive momentum. Rabbit continues to benefit from growth across its ecosystem, while ROCTEC is targeting another year of revenue growth with healthy profitability, as Khun mentioned earlier. Looking at our investment portfolio, we expect our share of profit from investment in associates and JV of around THB 700 million, mainly driven by contribution from BTSGIF, the fund, PlanB and T&L. As a result, we are also targeting the recurring EBITDA of around THB 9 billion to THB 10 billion with approximately around 60% contributed from MOVE business. At the same time, at the CapEx side, we remain disciplined on the capital spending, focusing on our investment for the project that support long-term growth and operating efficiency. Overall, this fiscal year ending March '27 will be a year of steady execution and business optimization. Even though the operation going to continue to be impacted by the ramp-up phase for the pink and yellow line, we remain focused on standing our core business and maintaining healthy cash flow generation. Next slide, please. Before we hand over to the BTSGIF team, let me leave you with a few key messages for this fiscal year. I'll start with the macro level. While the Thai economy is expected to grow at a moderate pace, we believe BTS Group will remain well positioned to benefit from continued public investment, consumer spending and urban mobility demand. Looking at our performance, as I mentioned earlier, we are targeting around THB 27 billion in operating revenue, supported by contribution from all three business segments. Move continue to provide a stable earnings base, while MIX and MATCH are expected to deliver growth through improved operating performance. From a financial status perspective, we maintain a strong liquidity position, supported by healthy cash reserve at around THB 50 billion available credit facilities, recurring O&M cash flow, as mentioned in early page, we expect around THB 28 billion in cash flow from operating and maintenance provision for the next 3 years and annual subsidy payment from the Pink and Yellow line at THB 4.8 billion per annum. Looking ahead, the government initiatives to promote the public transport usage, including fare reforms and a unified ticketing system may provide further upside to our group by improving accessibility and commuter convenience. These measures could help support long-term ridership growth and the VGI growth in terms of the increasing eyeballs. Overall, our focus remains on disciplined execution and maintaining financial strength. With that, I'll now hand over to Khun Siriphen, BTSGIF, to walk you through their performance and outlook. Thank you.

Thank you, [ indiscernible]. Good afternoon, everybody. My name is Siriphen. Today, I will present the financial performance of BTSGIF for fiscal year 2025/'26. For 12 months of fiscal year 2025/'26. -- total income of the fund was THB 4.71 billion, increasing 3.6% year-on-year from the increase in income from investment in MRTA, which totaled THB 4.69 billion, up 3.8% year-on-year. Total expenses of the fund were THB 50 million, declining 5.5% year-on-year, driven by a decline in other expenses resulting from a decrease in unitholder book expenses and a reduction in fund management fee and expense. Profit from net investment was THB 4.66 billion, increasing 3.7% year-on-year. In fiscal year '25/'26, the fund recorded loss on investment of 4.6 -- THB 6.42 billion. This largely result from first, the shortened consistent period. Second, the decrease in forecast net revenue for fiscal year '26/'27 onwards being partially offset by the decrease in discount rate from 4.9% in March 2025 to 4.4% in March 2026. And the change in net asset resulting from operation was minus THB 1.76 billion. Next slide is the income from investment in MRTA. For the full year of fiscal year '25/'26, Farebox revenue was THB 6.7 billion, decreasing 1.5% year-on-year from the decrease in ridership by 2.7% year-on-year to 200 million tips, mainly resulting from economic slowdown, high base ridership last year and fewer week day, but was partially offset by the increase in average fare by 1.2% year-on-year due to a lower comparative baseline last year. O&M costs were THB 2 billion, decreasing 12% year-on-year, mainly from the decrease in maintenance expense for rolling stock refurbishment income from investment in MRTA was THB 4.7 billion, increasing 3.8% year-on-year. And income from investment in MRTA margin was 69.9%, increased from 66.3% last year. Next slide is the statement of financial position. As of 31st March 2026, total assets were THB 18.5 billion. The main component were investment in MRTA of THB 16.8 billion, decreased by THB 2.9 billion from 31st December 2025. Investment in security and cash of THB 1.7 billion and total liability stood at THB 152 million Net asset value as of 31st March 2026 was THB 18.3 billion, equivalent to THB 3.165 per unit. This is the core network performance. May I skip the quarterly performance and go to the annual performance. For fiscal year '25/'26, ridership was 200 million trips, decreasing 2.7% year-on-year, mainly result from economic slowdown, high base ridership from free travel day under government policy last year and fewer week day. Average weekday ridership was 619,000 trips, decreasing 1.9% year-on-year and average fare was THB 33.5 per trip, increasing 1.2% year-on-year, largely due to a lower comparative baseline last year from -- next is the distribution. The fund announced the capital reduction for the fourth quarter of THB 0.2 per unit. [indiscernible] is on 11 June 2026 and payment date is on 25th June 2026. Total distribution for fiscal year '25/'26 is THB 0.80 per unit and total distribution since inception is THB 8.596 per unit. Next is the business update. First, regarding the travel promotion for the Rabbit Reward loyalty program in which passenger can earn points from their journey. This has expired in March 2026 and BTSC didn't extend this program. However, for the Xtreme package, BTSC has introduced new under the saving program offering a more cost-efficient commuting option for passenger or the BTS green light route. First for the long distance, there is new within 7-day package. Second, for short distance, there is new package for short distance up to four stations. And therefore, Bangkok Bank [indiscernible] debit cardholder, there is special packet of within 30 days at THB 29 per [indiscernible], this is the fare for saving package. The fare for long distance land from THB 34 to THB 40 per for adult and THB 27 to THB 32 per for students and the fare for short distance land from THB 25 to THB 27 per passenger using to travel across the core line together with the extension line, the additional fare for extension are THB 17 to THB 25 per trip for adult and THB 2 to THB 17 per for students. Next slide, please. The fund has conducted a new appraisal for March 2026 valuation. This slide summarize the key factors that were shown in the valuation report among March '25, December '25 and March '26 report. Key factors that were shown in March '26 report were first impact from COVID-19. March 26 report reflect the current transportation situation after COVID-19 pandemic with new normal, while the previous report assumed slow recovery; second, lower economic growth rate. Third, lower inflation rate and fourth, discount rate increased to 4.4% from 3.7% in the December 2025 report. Next slide shows effect between current report and the previous report. The valuation as of 31st March 2026 was THB 16.8 billion, decreased from THB 19.7 billion as of 31st December 2025 by THB 2.9 billion, mainly from first, a significant decrease in value of revenue of THB 2.1 billion; second, a short period of THB 0.6 billion; and third, a decrease in valuation from an increase in discount rate of THB 0.2 billion. The following page show the projected ridership projected revenue Net cash flow and cost, you can see the detail in the slide that for [indiscernible]. Thank you.