ANNUAL REPORT 2020 Bangkok Expressway and Metro Public Company Limited With the intention of contributing to the alleviation of traffic problems in Bangkok and its vicinity, BEM is always committed to provide an efficient service of the expressway and metro with the prime aim of improving the quality of life and bringing smile of happiness to urbanites. Happy Every Moment of Your Journey Contents Financial Summary 03 Facilities for MRT Passengers 42 Message from the Chairman 07 Promotion and Campaign Activities 48 of the Board of Directors for Using the MRT System in 2020 Report of the Audit Committee 08 Company Profile PR Booths 49 Report of the Nomination 09 Corporate Social and Environmental Activities 50 and Remuneration Committee Business Policy and Overview 59 Report of the Corporate Governance 10 and Risk Management Committee Nature of Business Operations 66 The Board of Directors 11 Risk Factors 103 Management Team 18 Property Used in Business Operations 112 Organization Structure 19 Legal Disputes 118 Expressway System Map 20 General Information and Other 118 Significant Information Udon Ratthaya Expressway Map 22 Information on Securities and Shareholders 122 Si Rat - Outer Ring Road Expressway Map 23 Management Structure 130 Mass Rapid Transit 24 & Commuter Train Network Corporate Governance 144 The Opening Ceremony of the M.R.T. 26 Corporate Social Responsibility 189 “Chaloem Ratchamongkhon” (MRT Blue Line) Internal Control and Risk Management 208 Awards of Pride 2020 28 Connected Transactions 210 Measures to Prevent the Spread 30 Financial Highlights 215 of the COVID-19 of MRT Report on Responsibilities 223 Measures to Prevent the Spread 36 of the Board of Directors towards of the COVID-19 of Expressway the Financial Report First Class Expressway Services 38 Management Discussion and Analysis 224 Facilities for the Expressway Users 40 Information of Company Executives 231 MRT Safety Promotion Activities 41 Financial Statements 243 Bangkok Expressway and Metro Public Company Limited Annual Report 2020 3 Financial Summary Bangkok Expressway and Metro Public Company Limited and its Subsidiaries Financial Highlights Unit : Million Baht 2020 2019 Financial Position (As at December 31) Total assets 113,616 111,697 Total liabilities 75,582 72,874 Shareholders’ equity 38,034 38,823 Operating Results (For the year ended December 31) Revenue from expressway business 8,145 10,302 Revenue from rail business 4,520 5,022 Revenue from commercial development business 825 783 Net profit attributable to the Company 2,051 5,435 Financial Ratios Net profit margin (%) 14.60 18.66 Return on equity (%) 5.35 8.38 Return on total assets (%) 2.00 3.24 Debt to equity ratio (times) 1.76 1.62 Interest bearing debt to equity ratio (times) 1.50 1.37 Book value per share (Baht) 2.49 2.54 04 Annual Report 2020 Bangkok Expressway and Metro Public Company Limited Average Daily Toll Revenue : Chalerm Mahanakorn, Si Rat, Udon Ratthaya and Si Rat - Outer Ring Road Expressway (Million Baht/Day) 35 30 25 20 15 10 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG Daily Toll Revenue 2020 : AVG Daily Toll Revenue 2019 : 23.23 Million Baht/Day 28.23 Million Baht/Day Average Daily Traffic : Chalerm Mahanakorn, Si Rat, Udon Ratthaya and Si Rat - Outer Ring Road Expressway (Trips/Day) 1,500,000 1,300,000 1,100,000 900,000 700,000 500,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG Daily Traffic 2020 : AVG Daily Traffic 2019 : 1,049,928 Trips/Day 1,237,235 Trips/Day Bangkok Expressway and Metro Public Company Limited Annual Report 2020 05 Average Daily Fare Box Revenue : the MRT Chaloem Ratchamongkhon Line (Million Baht/Day) 15 12 9 6 3 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG Daily Fare Box Revenue 2020 : AVG Daily Fare Box Revenue 2019 : 7.14 Million Baht/Day 8.67 Million Baht/Day Average Daily Ridership : the MRT Chaloem Ratchamongkhon Line (Trips/Day) 500,000 400,000 300,000 200,000 100,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG Daily Ridership 2020 : AVG Daily Ridership 2019 : 260,471 Trips/Day 336,849 Trips/Day Bangkok Expressway and Metro Public Company Limited Annual Report 2020 07 Message from the Chairman of the Board of Directors In 2020, Bangkok Expressway and Metro Public Company Limited or BEM has already launched the full operation of all three Sections of the MRT Blue Line to the public on March 30, 2020, with the MRT Blue Line’s connected route running in a Circle Line covering the central area of Bangkok while making a connection between Bangkok and Thonburi sides. Most of all, BEM was tremendously proud that His Majesty the King and Her Majesty the Queen graciously presided over the official opening ceremony of the M.R.T. “Chaloem Ratchamongkhon” Line (MRT Blue Line), the Extension of Hua Lamphong - Bang Khae Section and Bang Sue - Tha Phra Section, on November 14, 2020. Moreover, BEM has steadily gained confidence from the government sector in the expressway management, proved by the execution of the Second Stage Expressway Agreement (Amendment) and the Bang Pa-in - Pak Kret Expressway Agreement (Amendment) In respect the operating results of 2020, BEM with the Expressway Authority of Thailand in a collaborative had the net profit in the total amount of Baht 2,051 effort to settle the disputes and extend the respective Million, a decrease from the previous year due to the concession periods until October 31, 2035. impact of COVID-19. Nonetheless, BEM reaffirmed the commitment to taking care of stakeholders, especially In the context of the business operations based shareholders, whereby the Board of Directors resolved on corporate governance in 2020, BEM was rated as a to propose that the Shareholders’ Meeting consider listed company with the “Excellent CG Scoring” or Five approving the dividend payment for 2020 at the rate of Star Rating in Corporate Governance from the Thai Baht 0.10 per share. Institute of Directors Association (IOD) and the Stock Exchange of Thailand (SET), and also, BEM was We would like to extend our gratitude to all presented with the Thailand Sustainability Investment shareholders, expressway users, MRT passengers Award for the fourth consecutive year as a listed company counterparts, public and private agencies, along with engaging in business operations by taking into account all concerned parties, for their continued support and environment, society and corporate governance, not to confidence in BEM’s business operations, as well as to mention the Thailand’s Top Corporate Brands 2020 as all executives and staff for their role as the driving force the organization with the highest brand value in the behind the delivery of the efficient services to the service transportation and logistics sector from the Faculty of users in the midst of the COVID-19 crisis. In 2021, Commerce and Accountancy Chulalongkorn University. please rest assured that BEM remains committed to operating the businesses based on the good corporate The situation of the outbreak of COVID-19 last governance principles, with social responsibility, as well year had caused a decline in the traffic volume of both as putting ahead with developing and designing new the expressway and MRT services, the Company innovations in order to enhance the quality of travel life therefore implemented the measures for cleanliness while bringing smiles of happiness to all expressway inside the MRT trains and stations for the sake of hygiene users and MRT passengers. Finally, BEM would like to and safety of all service users, and also managed and give all Thai people encouragement to get through such controlled costs to ensure they were reasonable and tough situations together at our best. correlated with the situation happened, with BEM supporting the government policies to curb the spread of COVID-19 through the “Healthy Journey with BEM” project to give away one million cloth face masks to the MRT service users, including communities and schools (Mr. Plew Trivisvavet) adjacent to the expressway and MRT routes. Acting Chairman of the Board of Directors 08 Annual Report 2020 Bangkok Expressway and Metro Public Company Limited Report of the Audit Committee The Audit Committee of Bangkok Expressway and Metro Public Company Limited, as appointed by the Board of Directors, comprises three independent directors, namely, Mr. Vitoon Tejatussanasoontorn, as Chairman of the Audit Committee, General Chetta Thanajaro, and Dr. Annop Tanlamai, as Audit Committee Members. The Chairman of the Audit Committee and Dr. Annop Tanlamai specialize in accounting and finance, and the General Manager of Internal Audit Office serves as secretary to the Audit Committee. The Audit Committee has performed its duties within the scope, duties and responsibilities as assigned by the Board of Directors in line with the requirements of the Stock Exchange of Thailand, together with the suggestions on various related matters. In 2020, the Audit Committee held five meetings for discussion and sharing of opinions with the management and internal auditor, and two meetings with the auditor without the management’s presence, for discussion on the essence of the audit plan, significant accounting matters, and accounting standards to be applicable, along with independence in performance of duties and expression of opinions of the auditor. The key performance of duties of the Audit Committee can be summarized as follows: 1. Review of Financial Report: The Audit Committee reviewed the quarterly financial statements and the financial statements for 2020 of the Company