Management Discussion & Analysis Quarter 2/2025

1. Significant Events BEM Annual Dividend Payment

   In April 2025, the Annual General Meeting of Shareholders 2025 approved dividend payment for the Company's performance of the year 2024 at Baht 0.15 per share for the total amount of Baht 2,247 million, which was subsequently paid on May 2, 2025.

   Received "Best Sustainability Bond" Award

   BEM received the Best Sustainability Bond Award in the transport sector from The Asset Triple A Awards for Sustainable Finance 2025 for the issuance of Sustainability Debentures No. 1/2024 in the amount of Baht 5,000 million in the previous year. The debentures received great interest from investors, reflecting their confidence in BEM's business profile and its strong financial position as an integrated public transportation service provider aiming for sustainable development.

   Listed in "ESG100" for the Year 2025

   BEM was selected to be included in the "ESG100" for the year 2025, recognizing outstanding performance in environmental, social, and governance practices in the transportation and logistics sector.

2. Summary of Operational Results for the Second Quarter of the Year 2025

   The overall global economic outlook remains volatile, leading to a decline in the number of international tourists visiting Thailand, particularly Chinese tourists. As a result, both traffic and ridership volume decreased compared to the same quarter of the previous year. Additionally, the more varieties and options of domestic travel routes contributed to the decline in toll revenue for this quarter. Meanwhile, farebox revenue increased due to the fare rate adjustment in accordance with the concession agreement effective since July last year. Revenue from commercial development declined due to lower income from telecommunication network services at MRT stations.

   Net Profit Attributable to Equity Holders of the Company

   Net profit attributable to equity holders of the Company in the second quarter of the year 2025 was Baht 993 million, broadly in line with the same quarter of the previous year. Total service revenues from the main businesses amounted to Baht 3,997 million, decreased by Baht 26 million or 1% due to the decline in toll revenue and commercial development revenue, while farebox revenue increased from the same quarter of the previous year. Meanwhile, cost of services including selling and administrative expenses amounted to Baht 2,643 million, similar to the same quarter of the previous year. In addition, finance cost was Baht 561 million, decreased by Baht 29 million or 5%.

   For the six-month period of the year 2025, net profit attributable to equity holders of the Company was Baht 1,864 million, representing an increase of Baht 14 million or 1% from the same period of the previous year. The increase was mainly driven by effective cost management in both cost of services and finance cost. Meanwhile, service revenues remained close to the same period of the previous year, despite being slightly impacted by the earthquake and the collapse of a concrete beam of the Rama III - Dao Khanong Expressway construction project in March 2025, coupled with a decline in the overall number of international tourists during the second quarter.

   Overview of Operational Results

   (Unit: Million Baht)

   Description	2ndQuarter	Change %	For the 6 months	Change %
   	2025 2024		2025 2024

   Service revenues	3,997	4,023	-1%	8,256	8,273	-0.2%
   Cost of services	(2,315)	(2,318)	-0.1%	(4,642)	(4,676)	-1%
   Gross profit	1,682	1,705	-1%	3,614	3,597	0.5%
   Other income	359	363	-1%	374	392	-5%
   Interest income from the MRT Purple Line Project	15	29	-48%	33	61	-46%
   Profit before expenses	2,056	2,097	-2%	4,021	4,050	-1%
   Selling and administrative expenses	(328)	(316)	4%	(622)	(607)	2%
   Operating profit	1,728	1,781	-3%	3,399	3,443	-1%
   Finance cost	(561)	(590)	-5%	(1,128)	(1,168)	-3%
   Interest expenses from the MRT Purple Line Project	(12)	(21)	-43%	(26)	(44)	-41%
   Profit before income tax expenses	1,155	1,170	-1%	2,245	2,231	1%
   Income tax expenses	(162)	(167)	-3%	(381)	(381)	0%

   Net profit attributable to Equity holders of the Company

   993 1,003

   -1%

   1,864 1,850

   1%

   Basic earnings per share (Baht)* 0.07 0.07 0.12 0.12

   * Calculated based on weighted average number of ordinary shares

   Service Revenues = Revenue from Commercial Development Business Revenue from Rail Business Revenue from Expressway Business Service Revenues

   Service revenues was Baht 3,997 million, decreased by Baht 26 million or 1% compared to the same quarter of the previous year.

   Baht

   3,997

   million

   Baht

   2,084 million Baht

   1,623 million Baht

   290

   million

   -1%
   
   

   YoY

   -1% YoY
   
   
   1% YoY
   
   
   -5%
   
   

   YoY

   Other Income

   Other income was Baht 359 million, comprising dividend income, interest income, and other income. This represents a decrease of Baht 4 million or 1% from the same quarter of the previous year due to lower interest income from deposits.

   Cost of Services

   Cost of services was Baht 2,315 million, remaining similar to the same quarter of the previous year.

   Selling and Administrative Expenses

   Selling and administrative expenses amounted to Baht 328 million, an increase of Baht 12 million or 4% from the same quarter of the previous year, primarily due to public relations expenses.

   Finance Cost

   Finance cost was Baht 561 million, a decrease of Baht 29 million or 5% from the same quarter of the previous year. This decrease resulted from the Company's effective financial cost management. Currently, the Company holds a proportion of fixed rate debts at 67% and floating rate loans at 33%.

3. Segment Performance

   (Unit: Million Baht)

   Description	Expressway Business			Rail Business			Commercial Development Business
   	Q2'25	Q2'24	+/- (%)	Q2'25	Q2'24	+/- (%)	Q2'25	Q2'24	+/- (%)

   Service revenues	2,084	2,114	-1%	1,623	1,603	1%	290	306	-5%
   Cost of services	(748)	(714)	5%	(1,461)	(1,498)	-2%	(106)	(106)	0%

   Gross profit

   1,336

   1,400

   -5%

   162

   105

   54%

   184

   200

   -8%

   Expressway Business

   Expressway business revenue was Baht 2,084 million, a decrease of Baht 30 million or 1% from the same quarter of the previous year. Average traffic volume in this quarter was 1.08 million trips per day, slightly decrease from average traffic volume in the same quarter of the previous year was

   1.10 million trips per day. This was mainly due to the impact of the earthquake at the end of the previous quarter, which led to temporary closure of certain toll plazas. In addition, the slowdown in the tourism sector and the overall economy contributed to the decline in expressway traffic volume.

   The cost of expressway business, consisting of toll cost and amortisation of the rights to operate completed expressway sectors, amounted to Baht 748 million, an increase of Baht 34 million or 5% from the same quarter of the previous year. This was mainly due to the expenses charged by contractors in the second quarter of last year being lower than estimated, resulting in higher expenses in this quarter by comparison. In addition, amortisation increased following additional investments to enhance structural safety on the expressways.

   Rail Business

   Rail business revenue was Baht 1,623 million, an increase of Baht 20 million or 1% from the same quarter of the previous year. Farebox revenue from the MRT Blue Line increased by Baht 70 million or 7%, mainly due to the fare rate adjustment effective since July 2024 in accordance with the concession agreement. In this quarter, average ridership was 385,800 trips per day and average working day ridership was 456,400 trips per day, both broadly in line with the same quarter of the previous year. Meanwhile, O&M services revenue of the MRT Purple Line decreased by Baht 50 million or 8%, in accordance with O&M service fees stipulated in the concession agreement.

   The cost of rail business, consisting of farebox cost, O&M services cost, and amortisation of intangible assets under concession agreement, amounted to Baht 1,461 million, a decrease of Baht 37 million or 2% from the same quarter of the previous year. The decrease was mainly due to reduction in annual maintenance costs, offset by the increases in amortisation of intangible assets under the concession agreement and compensation to MRTA as specified in the concession contract, which was related to the increases in revenue.

   Commercial Development Business

   Commercial development business revenue was Baht 290 million, a decrease of Baht 16 million or 5% from the same quarter of the previous year, mainly due to a decrease in telecommunication network services revenue at MRT stations. Meanwhile, the cost of commercial development business was Baht 106 million, similar to the same quarter of the previous year.

4. Financial Position

   (Unit: Million Baht)

   Total assets Total liabilities and shareholders' equity

   30,388

   30,746

   3,823

   4,182

   36,560

   34,739

   9,136

   9,423

   43,055

Receivable under the

MRT project agreements

Long-term investments

142,342 132,773

142,342 132,773

Loans

Assets under the MRT project agreements

Debentures

Assets under the Expressway

project agreements

Other assets

Other liabilities

Shareholders' equity

As of June 30, 2025, the Company and its subsidiaries had total assets of Baht 142,342 million, an increase of Baht 9,569 million or 7% compared to the end of the year 2024. The increase was primarily due to 1) an increase in MRTA receivable on civil construction costs of the MRT Orange Line project (West section), 2) M&E work in progress of the MRT Orange Line project, and

3) asset under concession agreement of the MRT Blue Line project, mostly from prepaid project remuneration to the MRTA as specified in the concession agreement.

Total liabilities were Baht 107,603 million, increased by Baht 11,390 million or 12% mainly from an increase in loan for Civil and M&E works of the MRT Orange Line project as specified in the concession agreement.

Total shareholders' equity was Baht 34,739 million, a decrease of Baht 1,821 million or 5%. The decrease was primarily attributable to the dividend payment of Baht 2,247 million and a decline in the fair value adjustment of financial assets to reflect market price in accordance with the accounting standard of Baht 1,438 million. Meanwhile, the Company recorded net profit for six-month period of Baht 1,864 million.

1. Cash Flows

   (Unit: Million Baht)

   Description	For the 6 months
   	2025 2024

   Net cash flows operating activities	(3,378)	3,899
   Net cash flows investing activities	(4,532)	(107)
   Net cash flows financing activities	7,682	(3,187)
   Net increase (decrease) in cash and cash equivalents	(228)	605
   Cash and cash equivalents at the beginning of period	1,672	1,246
   Cash and cash equivalents at the end of period	1,444	1,851

   The Company commenced works under the MRT Orange Line project concession agreement from the third quarter of 2024 onwards. For the civil works cost of the West section, MRTA will subsidize by six years, starting from the beginning of the third year following the construction commencement date. For the six-month period of this year, the civil works cost was recorded as receivable under the Public-Private Partnership contract of the MRT Orange Line project of Baht 5,989 million. As a result, net cash used in operating activities amounted to Baht 3,378 million. However, excluding this item, the Company had net cash received from operating activities of Baht 2,611 million, and excluding the annual remuneration of the MRT Blue Line project for six-month periods amounted to Baht 2,246 million, the Company has net cash received from operating activities of Baht 4,857 million.

   Net cash used in investing activities amounted to Baht 4,532 million, allocated for investments in M&E works for the MRT Orange Line project amounted to Baht 3,190 million, and investments in M&E equipment for the MRT Blue Line project and expressway maintenance of Baht 1,679 million. Meanwhile, the Company received dividend of Baht 337 million.

   Net cash from financing activities amounted to Baht 7,682 million, primarily from net loans obtained from financial institutions of Baht 14,655 million. This was partially offset by the redemption of matured debentures of Baht 3,500 million, dividend payment of Baht 2,247 million, and interest payments and financial fees totalling to Baht 1,226 million.

2. Significant Financial Ratios

The profitability ratio, ROE and ROA ratios similar to the same quarter of the previous year. D/E and Net IBD/E ratios increased from additional loan for the MRT Orange Line construction investments during the year. However, Net IBD/E ratio still lower than the threshold of 2.5 times, as specified in the loan and debenture covenant.

*

* Average ridership in January 2025 include ridership during 7-day free public transport measure (25 - 31 January 2025)