Friday, September 1, 2017 ir@buriramsugar.com AGENDA I. BRR in - PowerPoint PPT Presentation

Friday, September 1, 2017 ir@buriramsugar.com

AGENDA I. BRR in Brief II. Operating Results – Q2/2017 III. Sugar Situations IV. Investment Update V. Q&A น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field

Company Structure Buriram Sugar Public Company Limited (BRR) Sugarcane Sugar Mill Electricity I Electricity II Electricity III Fertilizer Development (BSF) (BEC) (BPC) (BPP) (KBF) (BRD) ▪ Establish on Establish in Establish in 2005, ▪ Establish in ▪ ▪ Establish in 2011, ▪ • Establish on the 2 nd electricity 1960, produce produce and sale 2011, produce 1996, with the January 23, and sale raw electricity from factory of BRR and sale mission on 2015 to and brown biomass power with capacity 9.9 fertilization with research and support future sugar both plants with MW capacity 30,000 development to third electricity capacity 9.9 MW domestic and COD on April 7, ▪ tons/year improve project. The international Since Jun 2012, ▪ 2015. Sale 8 MW sugarcane ▪ Licensed construction of with capacity BEC sale electricity to quality and production and BRR 3 rd 24,000 electricity to Provincial productivity. sale of organic tons/day electricity Provincial Electricity Agency fertilizer and factory has Its electricity Electricity Agency ▪ under FiT (Feed- organic capacity is 1 8 with maximize in Tariff) system. started since MW volume 8 MW chemical May 16, 2015. fertilizer Supporting Business By Product Main Business น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field

BRR in Brief ➢ Pioneer of sugar factory in the Northeast ➢ Exceptional sugarcane field management system ➢ Higher than average sugar yield 113.75 kg/ton cane compared to the national average of 107.91 kg/ton for 2016/17 ➢ Strong ties with 13,000 contracted sugarcane growers ➢ Bio-Energy business development with growth potential 3 น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field

BRR in Brief Cane fields within 40 km radius 2016/17A 184,831 Rai of Acreage 2,210,000 Tons of Cane Crushed 2017/18F 240,000 Rai of Acreage 2,800,000 Tons of Cane Crushed BSG 2016/17 2017/18 น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field

Business Overview Main Business Raw and brown sugar Molasses Processing in sugar mill Sugarcane 1 05 – 118 kg. 4 0 – 45 kg. By-product Business Bagasse Electricity Business 1 Ton 250 -260 kg. 111.6 - 116.1 kWh Filter Cake Fertilizer Business 30 - 35 kg. 40-50 kg. 5 น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field

AGENDA I. BRR in Brief II. Operating Results – Q2/2017 III. Sugar Situations IV. Investment Update V. Q&A น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field

P/L STATEMENT ANALYSIS Unit: Million Baht Unit: Million Baht +540% 266.09 +301% 663.67 165.43 41.54 2,001.61 4,202.63 2,708.69 1,208.86 +66% +55% 2Q16 2Q17 1H16 1H17 Net Revenue Net Profit Net Revenue Net Profit  According to the prolong drought from El Nino phenomenon in several major sugar production countries – India, China, Thailand, etc., the revenue from sugar export sale increased by 142% or 765 million Baht compared to 2Q16. Hence, the Company has recorded a revenue increase from a delivery of 75,900 ton of sugar or 39,900 tons higher than 2Q16.  The revenue from electricity sale in 2Q17 rose by 10 million Baht or equivalent to 10% compared to 2Q16 due to the increasing sale price of Buriram Energy Co., Ltd. ( “ BEC ” ) after changing the purchasing system from Adder to Feed-in Tariff (FiT).

REVENUE BREAKDOWN QoQ Cane crushed in crop year of 2016/17 = 2.21 Metric Tons 75,926 Tons 1,304.80 Export Sugar 39,895 Tons 541.70 +142% 14,467 Tons 284.28 Domestic Sugar 316.36 16,612 Tons -10% 14,467 Tons 129.73 Fertilizer 124.27 +4% 23.67 KWt 107.43 Electricity 25.85 KWt 97.75 +10% 19,978 Tons 88.20 Molasses 29,114 Tons 117.22 -25% 48.88 Others - 200.00 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00 2Q17 2Q16 Unit: Million Baht

REVENUE BY BUSINESS QoQ Others Fertilizer 3% Fertilizer 7% Electricity 10% Domestic Sugar 5% 14% Molasses Electricity Domestic Sugar 5% 8% 27% Molasses 2Q17 10% 2Q16 Export Sugar Export Sugar 45% 66%  70-85% of total revenue was from sugar  Revenue from export sugar sale was equivalent to 66% in 2Q17 or increased by 21% compare from better sale price of around 22 c/p compared to 15 – 16 c/p in 2Q16  Domestic sugar sales dropped by 13% due to lower demand during raining season  Molasses mostly sold in 1Q17 and by 5% in 2Q17.

DELIVERY BY QUARTER น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field

AGENDA I. BRR in Brief II. Operating Results – Q2/2017 III. Sugar Situations IV. Investment Update V. Q&A น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field

CONTINUOUS GROWTH  ACREAGE / CANE CROP  YIELD 240,000 3.1 250,000 13.7 2.9 2.7 189,000 200,000 184,000 13.2 178,000 13.35 2.7 168,000 12.7 2.5 150,000 12.2 2.3 12.17 100,000 2.1 2.25 11.7 2.06 1.9 11.2 1.95 50,000 1.85 1.7 11.01 10.7 10.96 10.90 1.5 0 10.2 13/14 14/15 15/16 16/17 17/18f 13/14 14/15 15/16 16/17 17/18f Yield (ton/rai) Acreage (rai) Cane (m mt) น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field

CANE YIELD DEVELOPMENT Ton/Rai 16 15 14 13.35 13 12.17 12 10.90 11 10 9.45 9.45 9.15 9 8 7 6 5 15/16 16/17 17/18 National Ave BRR BRR cane yield is above national average by 19%, 28% and 41% in three crop years respectively and expects to generate higher cane yield year over year.

BRR PRODUCTION Unit: Tons 112,000 86,337 94,013 +27.93% 79,061 75,980 +7.27% +1.39% +11.72% 87,525 +12.62% 322,000 234,626 251,696 231,408 207,138 183,928 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Sugar Molasse ▪ Though affected by drought in 2015/16 crop year, Buriram managed to increase cane volume by 100,000 MT from 1.95 M MT to 2.06 M MT. ▪ For 2016/17 crop, Buriram crushed 2.21 million tons of cane, producing 251,696 MT of sugar. ▪ 2.8 million tons of cane is expected to be crushed with the estimated 322,000 to 330,000 tons of sugar. Note : * Estimate figure น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field

BRR PRODUCTION Cane, Sugar, Molasses and Bagasse Unit: Ton Area Year Cane Sugar* Molasses* * Bagasse*** (Rai) 2015/16 190,000 2,060,649 234,686 82,425 309,097 2016/17 200,000 2,212,736 251,696 86,337 331,910 2017 / 18F 280,000 2,800,000 322,000 112,000 420,000 2018/19F 300,000 3,000,000 345,000 120,000 450,000 Remark: *Sugar Yield @ 115 kg / ton cane * *Molasses Yield @ 40 kg / ton cane *** Bagasse Yield @ 15 % of cane น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field

MARKET SHARE International Destinations Customers TRADER domestic sugar 25.5% 74.5% export sugar Domestic Modern Trade Customers Agent 100% % 100 80% 80 60% 60 40% 40 20 20% 0 0% ASIA Retails Modern OT HERS Trade น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field

Sugar Price : NY No. 11, Mar 2018 (Aug 31, 2017) Source: Barchart

Sugar Price : London No. 5, Mar 2018 (Aug 31, 2017) 18 Source: Barchart

WORLD SUGAR SITUATION (1/3) Due to the drought in late 2015 and early 2016, Thailand cane ✓ volumes in 2016/17 crop year was 92.95 million MT, 105 million MT lower than the previous year. For 2017/18, Thai ’ s cane volume is expected to rise to 105 – 110 million MT due to acreage expansion. The Indian government estimated the sugar production for 2016/17 ✓ at 22.5 million MT, 10.3% lower than the previous crop from 25.1 million MT. While some analysts expected the volume may be lower than 20 MT. Analysts believed India is to import around 1 million MT to cover 26 million MT ’ s annual consumption. So far, duty free import stays at 500,000 MT. India's ICRA forecasts sugar production in the 2017-18 marketing ✓ year (October-September) to increase to 23.5 - 24.5 million mt, a 16%-20% increase year on year, the agency said in a report. Sugar output is projected to increase based on higher production in Maharashtra and Uttar Pradesh, India's top two sugar producing states. น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field