Page 52 - Demo

50 Super Turtle Public Company Limited(1) Strategic RiskImplementation of Government%u2019s THB 20 Flat Fare Policy for the Entire Train NetworkIn 2024/25, the number of BTS passengers has shown continued recovery from the previous year, marked by the highest increase in January 2025 which included the period when Thai government announced its measures to tackle the worsening PM 2.5 air pollution by offering seven days of free public transportation from 25 %u2013 31 January 2025 and this period has shown the significant increase in BTS passenger numbers.From this reason, together with the government%u2019s THB 20 flat fare policy for the entire train network which will become effective by 30 September 2025, the Company expects that the number of passengers will accelerate and will have a positive impact on the revenue growth of Turtle shops and rental income on both BTS and MRT stations. The Company also plans to expand Turtle shop%u2019s branches and apply for additional permission to manage and operate leasing spaces on both BTS and MRT stations to support this business opportunity.Buying Back of Rail Concessions from Private OperatorsThe government has announced a policy to buy back all rail concessions from private sectors to make train fares cheaper, fair, more affordable and in line with its THB 20 flat fare policy.With the concession agreement for Green Line Core Network between Bangkok Mass Transit System Public Company Limited (%u201cBTSC%u201d) and Bangkok Metropolitan Administration (%u201cBMA%u201d) ending in 2029, the Company is fully aware of the risk to its primary source of income from business operations on BTS Green Line. However, the Company believes that its current management of leasing spaces and assets on BTS stations including Turtle shops and all 31 BTS stations is the strength and competitive advantage that the government will recognize and allow the Company to continue its retail and leasing businesses.To mitigate the risk from sole reliance on business operations on BTS stations, the Company (i) has expanded its business by launching a small format of shops under the name %u2018Turtle e%u2019 and managing leasing spaces on MRT Yellow Line stations and (ii) has plans to manage leasing spaces on MRT Pink Line stations too. Moreover, the Company has expanded Turtle shops outside a BTS station area by opening Turtle X at The Unicorn, Thana City at Bangna and BTS Visionary Park Building and also has plans to operate additional retail and leasing businesses in 2025/26.Introduction Nature of Business Business Performance Corporate Information Corporate Governance Financial Report Attachment