BTS: Bts Group Holdings Public Company Limited | Annual Report 2013
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BTS GROUP HOLDINGS PUBLIC COMPANY LIMITED ANNUAL REPORT 2012/13 OUR CITY FUTURE ANNUAL REPORT BTS GROUP HOLDINGS PUBLIC COMPANY LIMITED 2012/13 14-15 Floor, TST Tower, 21 Soi Choei Phuang BTS GROUP HOLDINGS Viphavadi-Rangsit, Chomphon, Chatuchak, Bangkok 10900 PUBLIC COMPANY LIMITED Tel. +66 (0) 2273 8611-15 Fax. +66 (0) 2273 8610 www.btsgroup.co.th OUR CITY OUR FUTURE OUR AMBITION VISION MISSION To provide the community with a unique and comprehensive We aim to provide a sustainable and leading set of range of City Solutions, that significantly contributes to an City Solutions to urban communities across Asia, supporting improved way of life. critical needs in our four principal business areas; Mass Transit, Media, Property and Services. VALUES Delivering Customer Satisfaction Supporting Sustainable Growth Our success is dependent on our ability to develop long-lasting Our client base and shareholder value must be customer relationships. This will be achieved by listening, enhanced in a sustainable manner. We conduct our business understanding, and anticipating our customers’ needs and upholding sustainable practices that reduce environmental delivering products or services that satisfy those needs. We are impact compared to competing products and services. easy to do business with and always strive to be responsive and professional. Creating Shareholder Value Developing Communities We strive to deliver accretion of shareholder value We are an integral part of the communities which we operate through earnings growth and improvement in operational in. We provide City Solutions that enhance our customers’ sense effectiveness. Specifically, we aim to deliver long-term of community. We contribute revenues and resources to work shareholder returns to our investors that outperform returns from with local communities supporting education and children’s investment alternatives with a similar risk profile. welfare and we promote the health and well-being of BTS employees and their families. DRIVING YIELD BTS GROUP ANNUAL REPORT 2012/13 Thailand’s First Infrastructure Fund and Largest Private Sector Initial Public Offering THB bn 62.5Fund Size DELIVERING VALUE CONNECTING GROWTH BTS GROUP ANNUAL REPORT 2012/13 Total Ridership (mn passengers) >1,700since 5 December 1999 to May 2013 DELIVERING VALUE CREATING IMPACT BTS GROUP ANNUAL REPORT 2012/13 Media Revenue Growth % 43Year over Year DELIVERING VALUE BUILDING BRANDS BTS GROUP ANNUAL REPORT 2012/13 The Book Value of Property Assets THB 11.6bn DELIVERING VALUE COMPOSING SOLUTIONS BTS GROUP ANNUAL REPORT 2012/13 Number of rabbit cards mn >1.2as of 31 May 2013 DELIVERING VALUE 1.2 KEY FIGURES INCOME STATEMENT PROFITABILITY AND RETURN CASHFLOW BALANCE SHEET Operating revenue1 Gross operating CFO7 Cash and cash equivalents (THB mn) profit margin (%) (THB mn) (THB mn) 2012/13 10,375.5 2012/13 48.8% 2012/13 4,683.1 2012/13 3,513.3 2011/12 7,719.8 +34.4% 2011/12 47.2% +1.6% 2011/12 1,755.8 +166.7% 2011/12 1,333.2 +163.5% Operating EBITDA2 Operating EBITDA margin5 Capex8 Net debt / equity (THB mn) (%) (THB mn) (x) 2012/13 5,273.0 2012/13 50.8% 2012/13 1,964.8 2012/13 0.17x 2011/12 4,140.7 +27.3% 2011/12 53.6% -2.8% 2011/12 2,614.9 -24.9% 2011/12 0.67x -0.50x Net recurring profit3 Net recurring profit margin6 Total dividend9 Total assets (THB mn) (%) (THB mn) (THB mn) 2012/13 1,835.9 2012/13 17.7% 2012/13 4,359.1 2012/13 67,031.1 2011/12 1,048.8 +75.0% 2011/12 13.6% +4.1% 2011/12 2,747.6 +58.7% 2011/12 66,888.9 +0.2% Net profit after minority Earnings per share DSCR10 Total equity interest4 (THB mn) (THB / Share) (x) (THB mn) 2012/13 2,488.3 2012/13 0.2490 2012/13 4.23x 2012/13 50,602.7 2011/12 2,105.6 +18.2% 2011/12 0.2311 +7.8% 2011/12 2.89x +46.4% 2011/12 36,932.3 +37.0% OPERATING REVENUE1 (THB mn) OPERATING EBITDA2 (THB mn) AND GROSS OPERATING PROFIT MARGIN (%) AND OPERATING EBITDA MARGIN5 (%) 53.6% 50.8% 48.8% 45.8% 5,273.0 47.2% 10,375.5 43.3% 43.0% 41.9% 7,719.8 4,140.7 5,892.5 5,630.8 2,578.6 2,548.9 2009/10 2010/11 2011/12 2012/13 2009/10 2010/11 2011/12 2012/13 Operating revenue (THB mn) Gross operating profit margin (%) Operating EBITDA (THB mn) Operating EBITDA margin (%) NET DEBT TO EQUITY (x) TOTAL ASSETS (THB mn) 67,031.1 66,888.9 0.67x 0.56x 0.44x 63,702.6 61,277.9 0.17x 2009/10 2010/11 2011/12 2012/13 2009/10 2010/11 2011/12 2012/13 1 Operating revenues includes fare box revenue from discontinued operations which are 5 Operating EBITDA margin = Operating EBITDA / Total operating revenue separated as ‘profit from discontinued operation’ in the Financial Statements 6 Net recurring profit margin = Net recurring profit before minority interest (excluding 2 Operating EBITDA = Operating earning before interest, taxes, depreciation and amortisation non-recurring items) / Total recurring revenue (excluding non-recurring items) 7 CFO = Net cashflow from operating activities after interest and tax 3 Net recurring profit = Net recurring profit before minority interest 8 Capex = Capital expenditures 4 Net profit after minority interest = Net profit attributed to equity holders of the company 9 Subject to shareholders’ approval, please see Section 4.1 Capital Markets Review (including non-recurring items) 10 DSCR = Debt service coverage ratio (Operating EBITDA / Finance cost) 14 BTS GROUP ANNUAL REPORT 2012/13 1.3 BTS GROUP AT A GLANCE TOTAL OPERATING REVENUE (THB mn) GROSS OPERATING PROFIT (THB mn) 10,375.5 5,058.1 OPERATING REVENUE BY BUSINESS UNIT GROSS OPERATING PROFIT BY BUSINESS UNIT Services Property Property Mass Transit 14.7% 0.4% 11.0% 56.7% Media Mass Transit Media 26.9% 58.0% 32.3% 4 BUSINESS UNITS IN BTS GROUP MASS TRANSIT MEDIA PROPERTY SERVICES REVENUE (THB mn) REVENUE (THB mn) REVENUE (THB mn) REVENUE (THB mn) 2012/13 6,015.5 2012/13 2,794.7 2012/13 1,522.7 2012/13 42.6 2011/12 5,031.9 2011/12 1,958.8 2011/12 728.3 2011/12 0.7 Office Building Thana City Golf and Others Construction O&M Core Network BTS-related Course Residential Services Rabbit Card 5.9% 10.4% Projects 18.6% 81.4% 49.4% 21.6% 78.4% 48.7% Commercial Modern Trade Projects 44.7% 40.9% TOTAL EMPLOYEES 3,420 MASS TRANSIT MEDIA PROPERTY SERVICES BTS GROUP HOLDINGS EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES 1,969 475 763 150 63 15 1.4 MASS TRANSIT - OUR CORE BUSINESS “Following the Sale of Net Farebox Revenues to BTS Infrastructure Fund, Mass Transit remains the Group’s core business and is expected to contribute 35% of group EBITDA in 2013/14” The BTS Group focuses primarily on the Mass Transit business which it operates via its majority-owned subsidiary, Bangkok Mass Transit System Public. Co. Ltd. (BTSC). BTSC is the exclusive concessionaire and operator of the BTS SkyTrain Core network1 (‘Core Network’) as well as the exclusive operator of certain extensions to the Core network and the Bus Rapid Transit (BRT) system. In April 2013, BTSC sold its rights to the future net farebox2 revenues under its concession agreement (“Concession”) with the Bangkok Metropolitan Administration (BMA) to BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF) (see Section 2.3: VGI Listing and BTSGIF for more details). In spite of this, it remains the exclusive concessionaire, the exclusive operator as well as the largest economic stakeholder in revenues of the Core Network via a holding of one-third of all units of BTSGIF held via BTS Group. Further, BTS Group expects to see promising growth in its mass transit business in the coming years. The Government is pursuing an aggressive expansion of the rail mass transit system and BTS Group hopes to be a lead participant in this. Following the BTSGIF transaction the Group has readied a significant cash balance which it has earmarked to support the anticipated bids for upcoming extensions. The Core Network Extensions To The Core Network BTSC has a concession agreement (“Concession”) with the Since the completion of the Core Network, the BMA (via Bangkok Metropolitan Administration (BMA) on the Core its wholly owned subsidiary Krungthep Thanakom Company network until 4 December 2029. The 30 year Concession is Limited or “KT”) has constructed certain extensions to the Green a Build-Transfer-Operate (BTO) concession for civil works and Line. Owing to its expertise in the operation of mass transit rail Build-Operate-Transfer (BOT) concession for mechanical and systems, BTSC has been appointed by KT to operate and maintain electrical (M&E) works. Under the Concession, BTSC has the these extensions on its behalf. Whereas previously these O&M right to receive 100% of revenues it collects from farebox contracts were awarded on a short-term basis, on 3 May 2012, sales and commercial revenues (advertising and retail space the KT and BTSC signed a 30-year O&M contract, which expires management) without any revenue sharing to any third parties. on 2 May 2042. In April 2013, sold its rights to the fare-box revenues under the Concession to BTSGIF (the commercial rights for advertising This O&M revenue3 is complimentary to Company’s share of were not sold), but BTS Group retains a one-third economic income from BTSGIF, and the Company is not exposed to any entitlement via a one third holding in the units of BTSGIF.