Management Discussion & Analysis Yearly 2025

MANAGEMENT DISCUSSION AND ANALYSIS FOR THE YEAR 2025

1. Overview of Business Operations

   Bangkok Expressway and Metro Public Company Limited (BEM) operates expressway and mass rapid transit (MRT), including related commercial development, under government concessions. At present, the Company and its subsidiary hold three expressway concessions with the Expressway Authority of Thailand, including the Si Rat Expressway (The Second Stage Expressway), the Prachim Ratthaya Expressway, and the Udon Ratthaya Expressway. In addition, the Company operates three rail concessions with the Mass Rapid Transit Authority of Thailand, including the MRT Chaloem Ratchamongkhon Line project (the MRT Blue Line), the MRT Chalong Ratchadham Line project (the MRT Purple Line), and the MRT Orange Line project (Bang Khun Non - Thailand Cultural Centre - Yaek Rom Klao section).

   The MRT Orange Line project is currently under construction where the Eastern section (Thailand Cultural Centre station - Yaek Rom Klao station) is scheduled to commercial operation in early 2028, and the West section (Bang Khun Non station - Thailand Cultural Centre station) is scheduled to commercial operation in 2030.

   Service revenue is the Company's primary income, accounting for 96% of total revenue which is divided into three business segments: expressway business revenue (50%), rail business revenue (39%), and commercial development business revenue (7%). The remaining revenue is other income, which mostly includes dividends and interest income.

   Overall Economics and Tourism Affecting Operations

   During 2025, the global economy faced a slowdown and volatility driven by trade wars, an international conflicts, and protectionist policies from the United States. These factors, combined with geopolitical uncertainty, led to a decrease in tourist arrivals to Thailand, resulting in a domestic economics slowdown both business and tourism sectors. However, government stimulus policy in the 4thquarter, coupled with easing international and domestic tensions, have led to a recovery in both local travel and foreign tourism and have positively impacted expressway traffic volume and MRT ridership.

2. Summary of Operational Results for the Year 2025

   The overall slowdown in the domestic economy has resulted in reduced travel behavior due to weakened purchasing power and the tourism recovery has not yet returned to the historical level. However, traffic congestion in Bangkok metropolitan remained high due to ongoing rail construction projects, and the commuting trips for work and education despite some organizations have adopted hybrid work models. Therefore, service revenue slightly decreased. However, with efficient cost management, led to an overall performance improved compared with the same period of the previous year.

   Net Profit Attributable to Equity Holders of the Company

   For the fiscal year 2025, the Company reported a net profit attributable to equity holders of Baht 3,781 million, representing an increase of Baht 13 million or 0.3% from the previous year's profit of Baht 3,768 million. Overall, service revenues from three main businesses decreased by Baht 88 million or 1% from the previous year. Expressway business revenue declined due to a decrease in traffic volume including this year had one fewer revenue-generating day compared to the previous year. The farebox revenue has increased, resulting from the fare adjustment since July last year. Although with lower tourist level, ridership remained close to the previous year. For commercial development, revenue was decreased mainly from telecommunications network services following the merger of mobile network service providers (TRUE and DTAC). However, with efficient operational and financial cost management, the overall performance was improved.

   Overview of Operational Results

   (Unit: Million Baht)

   Description

   2025 2024

   2025 vs 2024 % change

   2023

   2024 vs 2023 % change

   Service revenues	16,916	17,004	-1%	16,375	4%
   Cost of services	(9,458)	(9,497)	-0.4%	(9,311)	2%
   Gross profit	7,458	7,507	-1%	7,064	6%
   Other income	623	652	-4%	611	7%
   Interest income from the MRT Purple Line Project	52	110	-53%	153	-28%
   Profit before expenses	8,133	8,269	-2%	7,828	6%
   Selling and administrative expenses	(1,267)	(1,261)	0.5%	(1,241)	2%
   Operating profit	6,866	7,008	-2%	6,587	6%
   Finance cost	(2,236)	(2,348)	-5%	(2,243)	5%
   Interest expenses from the MRT Purple Line Project	(41)	(79)	-48%	(128)	-38%
   Profit before income tax expenses	4,589	4,581	0.2%	4,216	9%
   Income tax expenses	(808)	(813)	-1%	(737)	10%
   Net profit attributable to Equity holders of the Company	3,781 3,768		0.3%	3,479	8%
   Basic earnings per share (Baht)	0.25	0.25		0.16
   Service Revenues

   Service revenues was Baht 16,916 million, a decrease of Baht 88 million or 1% from the previous year.

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

   Baht 16,916 million

   Baht

   8,833 million Baht 6,906

   million Baht

   1,177 million

   -1%
   
   

   YoY

   -1% YoY
   
   1% YoY
   
   -5%
   
   

   YoY

   Other Income

   Other income was Baht 623 million, consisting of dividend income, interest income, and other revenue. This represents a decrease of Baht 29 million or 4% from the previous year, mainly due to lower interest income from deposits.

   Cost of Services

   Cost of services was Baht 9,458 million, a decrease of Baht 39 million or 0.4%, remained relatively consistent with the previous year, resulting from the adjustment of maintenance plan and lower electricity expenses, driven by effective electricity management and a decrease in the fuel tariff (Ft). Conversely, amortization on rights to operate expressway sectors and amortization of intangible assets under concession agreement increased, mainly from the completion of additional investment, and a revision of estimated expecting traffic volume and ridership volume.

   Selling and Administrative Expenses

   Selling and administrative expenses amounted to Baht 1,267 million which overall was consistent with the previous year. The expenses were mainly from advertising, public relations and expenses from events held in the MRT stations.

   Finance Cost

   Finance cost was Baht 2,236 million, a decrease of Baht 112 million or 5% from the previous year. This decrease resulted from the Company's effective financial cost management and a decline in domestic interest rates. Currently, the Company maintains a debt proportion of fixed interest rate at 57% and floating interest rate at 43%.

3. Segment Performance

   (Unit: Million Baht)

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

   Service revenues	8,833	8,941	-1%	6,906	6,830	1%	1,177	1,233	-5%
   Cost of services	(3,082)	(3,014)	2%	(5,942)	(6,051)	-2%	(434)	(432)	0.5%

   Gross profit

   5,751

   5,927

   -3%

   964

   779

   24%

   743

   801

   -7%

   Expressway Business

   Expressway business revenue was Baht 8,833 million, a decrease of Baht 108 million or 1% from the previous year. Average traffic volume in 2025 was 1.11 million trips per day, slightly decline from the previous year at 1.12 million trips per day. The main reasons were 1) the overall tourism and economy slowdown resulted in a reduction of the international tourism number which had a negative impact on traffic of expressway routes that link to major tourist destinations and airport 2) expressway traffic volume declined due to earthquake and a collapse of concrete beam during the construction of the Rama III-Dao-Khanong in early 2025, led to temporary toll plaza closure which forced many commuters to avoid affected routes. While some toll plazas experienced a positive impact as shifted of expressway users to alternative toll plazas 3) one fewer revenue-generating day compared to the previous year.

   The cost of expressway business, consisting of toll cost and amortization on rights to operate completed expressway sectors, was Baht 3,082 million, an increase of Baht 68 million or 2% from the previous year. This rise was mainly due to an increase in amortization from additional improvement investment on right to operate expressway sector and a revision of estimated expected traffic volume, whereas maintenance costs decreased according to the scheduled maintenance plan.

   Rail Business

   Rail business revenue was Baht 6,906 million, an increase of Baht 76 million or 1% from the previous year. Farebox revenue from the MRT Blue Line project increased by Baht 199 million or 4% due to an increase in average fare per trip. Total ridership remained comparable to the previous year when excluding the impact of 7-day free service period in late January 2025.

   Revenue from O&M services for the MRT Purple Line project decreased by Baht 123 million or 5%, in accordance with O&M service fees concession agreement.

   The cost of rail business, consisting of farebox cost, O&M services cost, and amortization on intangible assets under concession agreement, was Baht 5,942 million, a decrease of Baht 109 million or 2% from the previous year. This was mainly due to lower annual maintenance costs and reduced electricity expenses resulting from efficient energy management and a decrease in the fuel tariff (Ft). Meanwhile, amortization of intangible assets under the concession agreement increased due to additional investment in the MRT Blue line project and a revision of estimated ridership volume.

   Commercial Development Business

   Commercial development business revenue was Baht 1,177 million, a decrease of Baht 56 million or 5% from the previous year. The decrease was mainly due to a decline in telecommunication network services revenue at MRT stations by Baht 79 million from the merger of mobile network service providers (TRUE and DTAC). Meanwhile, revenues from advertising and Metro Mall grew by Baht 23 million.

   The cost of commercial development business was Baht 434 million, remained close with the previous year. Costs mainly consist of depreciation from investments in equipment and advertising media installations in commercial areas in MRT stations and in expressway areas, as well as advertising media production costs.

4. Financial Position

   (Unit: Million Baht)

   Total assets Total liabilities and shareholders' equity 160,510 132,773 112,496 160,510 132,773 112,496

   Receivable under the MRT

   project agreements

   30,791

   Long-term investments

   Assets under the MRT project agreements

   Assets under the Expressway

   project agreements

   Other assets

   10,383 85,088

   29,839

   4,409 14,853 11,480 71,512

   30,746

   4,182 4,262 11,682 61,173

   31,137

   4,242

   72,736 39,559 11,212

   37,003

   40,527 46,550 9,136

   36,560

   25,745 42,558 6,529

   37,664

   Loans

   Debentures

   Other liabilities Shareholders' equity

   2025 2024 2023 2025 2024 2023

   As of December 31, 2025, the Company and its subsidiaries had total assets of Baht 160,510 million, an increase of Baht 27,737 million or 21% compared to the end of the year 2024. The increase was primarily driven by 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 123,507 million, an increase of Baht 27,294 million or 28%, 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 37,003 million, an increase of Baht 443 million or 1%. The increase resulted from the net profit achieved for the year of Baht 3,781 million, dividend payment of Baht 2,247 million, a decline in the fair value adjustment of financial assets to reflect market price according to the accounting standard of Baht 983 million, and impact from the revaluation of employee benefit of Baht 108 million.

5. Cash Flows

   (Unit: Million Baht)

   Description

2023

2024

2025

The Company commenced work under the MRT Orange Line project concession agreement from the third quarter of 2024 onwards and the MRTA will subsidize cost of civil work of the Western section within six years, starting from the beginning of the third year following the construction commencement date. For the year 2025, the Company recorded an increase in the civil works cost as receivable under the Public-Private Partnership contract of the MRT Orange Line project of Baht 17,588 million, resulting in net cash used in operating activities of Baht 11,089 million. Excluding this item, the Company had net cash received from operating activities of Baht 6,499 million. Furthermore, if the annual remuneration payment of the MRT Blue Line project to the MRTA of Baht 4,567 million were excluded, the net cash received from operating activities would be Baht 11,066 million.

Net cash used in investing activities amounted to Baht 9,376 million, primarily for the investment in M&E works of the MRT Orange Line project of Baht 7,429 million, and investment in M&E equipment of the MRT Blue Line project and expressway maintenance of Baht 2,567 million. Meanwhile, received dividend from TTW and CKP of Baht 558 million and net cash from investment divestment of Baht 62 million.

Net cash from financing activities amounted to Baht 20,712 million, which included net loans from financial institutions of Baht 32,509 million. This was offset by the redemption of matured debentures amounted to Baht 7,000 million, dividend payment of Baht 2,247 million, and interest and financial fees payment amounted to Baht 2,550 million.

1. Sustainable development and Achievement Awards Thailand Energy Awards 2025

   BEM was honored with the Thailand Energy Awards 2025, by the Ministry of Energy, in recognition

   of its outstanding achievements in energy conservation and energy efficiency development. This national-level award honors organizations that demonstrate a strong commitment to systematic energy management, continuous improvement initiatives, and projects that enhance energy efficiency while sustainably reducing environmental impacts.

   "AAA" SET ESG Ratings 2025 for the 9thConsecutive Year

   BEM achieved the highest level "AAA" rating, in the service sector of the year 2025 SET ESG Ratings (formerly, Sustainable Stock) for the 9thconsecutive year, demonstrating a determination to drive the business toward sustainability in all dimensions. In addition, BEM continues to provide safe, convenient, and rapid transportation services, while operating accountability to the environment, social, and corporate governance.

   Sustainability Disclosure Awards 2025

   BEM received an honorary recognition at the Sustainability Disclosure Awards, from the Thaipat Institute. The award is presented to members of the Sustainability Disclosure Community (SDC) that provide transparent and comprehensive sustainability disclosures that are beneficial to stakeholders.

   ASEAN Energy Awards 2025

   BEM secured Second Runner-Up in the ASEAN Energy Efficiency and Conservation Best Practices Award 2025. This prestigious ASEAN Energy Awards (AEA) recognizes organizations that show sustainable energy development and conservation.

   "Climate Action Excellence" Award

   BEM was presented with the "Climate Action Excellence" award at the CCI Climate Change Forum 2025 organized by the Climate Change Institute (CCI) of the Federation on Thai Industries, this award honors organizations demonstrating excellent in greenhouse gas management.

   Net Zero Pioneer Recognition

   BEM received a certificate of recognition as a Net Zero Pioneer. The Company was selected as one of 22 pioneer organizations participating in the establishment of greenhouse gas reduction targets for the industrial sector to achieve Net Zero with Science Based Targets (Phase 2) method, organized by the Thailand Greenhouse Gas Management Organization (TGO).

   Listed in "ESG100" for the year 2025

   BEM has been selected by Thaipat Institute for inclusion in the "ESG100" for the year 2025, recognizing outstanding performance in Environmental, Social, and Governance ESG practices in the transportation and logistics sector.

   Outstanding CEO and Outstanding IR Awards

   BEM received the "Outstanding CEO" and "Outstanding IR" awards for the Transportation & Logistics industry at the IAA Awards for Listed Companies 2025, organized by the Investment Analysts Association (IAA). The awards reflect the excellence leader management and effectiveness of the company's Investor Relations by transparent communication which build trust and maintain long-term relationships in accordance with good governance principal.

   "Excellent" CG Scoring (5-Star Rating)

   BEM maintained consecutively received an Excellent Corporate Governance Scoring (5-Star Rating) from the assessment of the Corporate Governance Report of Thai Listed Companies 2025 (CGR), conducted by the Thai Institute of Directors Association (IOD).

   ASEAN CG Scored Recognition

   BEM was honored with the ASEAN Asset Class PLCs award based on the ASEAN Corporate Governance Scorecard (ASEAN CG Scorecard) 2025, which evaluated among 569 listed companies across six countries in ASEAN nation. Supported by the ASEAN Capital Markets Forum (ACMF) and the Asian Development Bank (ADB), the award recognizes companies that operate with transparency, social responsibility and focus on sustainable growth.

   A(tha) Credit Rating from Fitch Ratings

   Fitch Ratings assigned a National Long-Term Rating of "A(tha)" with a Stable Outlook. This reflects the Company's strong financial structure, asset quality, and long-term operational resilience.

   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. This follows the successful the issuance of Sustainability Debentures No. 1/2024 in the amount of Baht 5,000 million in the previous year. The debentures received strong investors demand, reflecting their confidence in BEM's business profile and its strong financial position as an integrated public transportation service provider dedicated to sustainable development.

2. Significant Events in 2025 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.

   The Impact of the Earthquake Incident

   Following an earthquake in Myanmar on March 28, 2025, which affected several areas in Thailand, including Bangkok. However, the infrastructure under the supervision of BEM - including the MRT Blue Line, MRT Purple Line, and three expressways, the Si Rat Expressway (The Second Stage Expressway), the Udon Ratthaya Expressway, and the Prachim Ratthaya Expressway - were designed and constructed with safety standards to withstand earthquakes. Moreover, BEM regularly conducts maintenance and inspection of systems and structures according to the scheduled plan. After the incident, BEM thoroughly inspected the operational readiness and assessed the structural of the expressways, electric train systems, and rolling stock which the assessment confirmed that all systems and structures remain intact and are safe for continue service.

   Progress update on the Orange Line Project Bang Khun Non - Min Buri (Suwinthawong)

   The project is currently in Phase 1 of implemented under a Public-Private Partnership (PPP) contract., which covers the design and construction period, and is divided into two main sections as below,

   1. For the East section (Thailand Cultural Centre station - Yaek Rom Klao station),

      The Company is responsible for the M&E systems and O&M services of the rail systems. The implementation period is 3 years and 6 months from the Notice to Proceed, which was issued on 31 July 2024. The section is expected to commence commercial operations in early 2028, further enhancing connectivity across eastern Bangkok and surrounding areas.

   2. For the West section (Bang Khun Non station - Thailand Cultural Centre station), the Company's scope of work covers both the civil works, M&E systems and O&M services. The total implementation period is 6 years from the Notice to Proceed date of 31 July 2024.

As of the end of December 2025, civil works and M&E systems progress is approximately at 23%.

The Company has engaged CH.Karnchang PCL. for the procurement of 21 additional rolling stocks and related electrical systems upgrades for the Chaloem Ratchamongkhon Line. The total investment value, inclusive of VAT, amounts to THB 7,200 million. The additional rolling stock is expected to be fully delivered and operational in 2028, in accordance with the implementation plan. This expansion aims to accommodate increasing ridership from the East section of the MRT Orange Line opening and alleviate passenger congestion and reduce waiting times during peak hours. As of the end of December 2025, overall progress of the rolling stock procurement stands approximately at 36%.

The profitability ratio and ROE ratios remained close to the same period as the previous year. The decline in ROA ratio was due to an increase in assets from work in progress of the MRT Orange Line project, which has not yet generated revenue during the year. D/E and Net IBD/E ratios increased from an increase in debt during the year. Nevertheless, Net IBD/E ratio remained lower than the threshold of 2.5 times, as specified in the loan and debenture covenant.

As the strong physical characteristic of the Company's expressway network and metro lines where the expressway is strategically located in the central business district and near key tourist attractions, and the MRT Blue line is the only circular rail line in Bangkok - the Company's core revenue remains solid and combined with efficient cost management, has consistently contributed to the Company's performance growth. However, performance is correlated with economic growth and increased economic activities, driven travel volume which directly enhances company's revenue. Moreover, given the significant debt from investments, interest expenses are substantial cost. To mitigate the risk of interest rate fluctuations, the Company manages the balance between floating and fixed interest rate debt. Regarding the Company's financial position, the Company is currently investing in the MRT Orange Line project and procuring additional rolling stocks. As a result, the Company's debt level will significantly increase, which is a typical characteristic of large-scale public infrastructure projects. However, the debt burden is expected to decline once construction is completed and the project begins operations.

For events that are significantly related to the Company's operations such as (1) the occurrence of natural disasters, which may cause damage to assets under the Company's responsibility, the collapse of structures resulting in traffic obstruction, the suspension of operations to ensure the safety of expressway users and rail passengers. (2) the outbreak pandemics, which may alter public travel behavior. (3) changes in the revenue-sharing ratio or extensions of concession periods, or the acquisition of the new transportation projects which the Company may be awarded in the future, all of which may affect the growth of the Company's operating performance.

*

* Average ridership during the 7-day free public transport measure period (25 - 31 January 2025) equals to 624.7 thousand trips/day.