Kaset Thai International Sugar Corporation PCL 27 August 2018 Page 1 - PowerPoint PPT Presentation

Kaset Thai International Sugar Corporation PCL 27 August 2018 Page 1 of 20

Important Notice This presentation is confidential. This presentation is not a prospectus. This presentation does not constitute or form part of any offer for sales or solicitation of any offer to buy any securities nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. This presentation has been prepared for the purpose of providing certain individuals with business, financial and other information concerning Kaset Thai International Sugar Corporation Company Limited (“KTIS”) The information contained in this presentation is intended solely for your personal reference only. If you are not an intended recipient, you must not read, disclose, copy, circulate, retain, distribute or take any action in reliance upon this material. This presentation is not intended to substitute your own analysis and investigation, and should not be considered a recommendation to any recipient of this presentation. Some statements contained herein are forward-looking statements identified by the use of forward- looking terminology such as “may” , “will” , “expect” , “anticipate”, “intend” , “estimate” , “continue”, “plan” or ot her similar words, which are subject to various risks and uncertainties. These statements include statements with respect to KTIS’s corpo rate plans, strategies and beliefs and other statements that are not historical facts. This presentation is prepared based on the assumptions and beliefs of KTIS’s management in light of the information currently available to KTIS involving risks and unce rtainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this presentation is, or shall be relied on as promise or representation of KTIS as to the future. For more information, contact : IR@ktisgroup.com Page 2 of 20

Agenda  1H-2018 Operating Results  Sugar & Bio Industrial Trends Page 3 of 20

1H-2018 Operating Results Page 4 of 20

Summary of Operating Results - 1 Total Revenues Total Expenses Net Profit (Loss) Unit: Baht million Income Tax Benefits Financial Costs Net Profit Other Income Selling & Admin. Expenses Sales & Services Revenues Cost of Sales & Services 11 11,869 869 11,736 11 736 12,005 12 005 10,762 10 762 2 46 46 182 182 336 336 185 185 184 184 1,864 864 10,000 10,000 1,512 512 11,682 11 682 11,354 11 354 973 973 9,959 959 5,000 5,000 9,067 067 0 0 1H-2017 2017 H1-2018 2018 1H-2017 2017 1H-2018 2018 -136 136 -300 1H-2017 1H-2018  Total revenues increased slightly, due to revenues from bio-business increased  Total expenses increased, due to cost of sales & services and SG&A increased  Gained net profit in 1H-2017, but net loss in 1H-2018 Page 5 of 20

Summary of Operating Results - 2 Sales & Service Revenues Gross Profit & Margin Unit: Baht million GP - Sugar GPM - Sugar 4.2% 3.7% GP - Bio GPM - Bio 7.7% Sugar 50% 5.3% 2,288 288 Paper Pulp 41 41.3% 40% 37 37.0% 2,000 1,723 723 877 877 Ethanol 1H-2017 30% Electricity 1,191 191 20% 1,000 15 15.7% Others 79.1% 10% 1,411 411 6.1% 532 532 0 0% 4.5% 1H-2017 2017 1H-2018 2018 7.1% 6.6% Sugar Paper Pulp 6.5% Ethanol 1H-2018 Electricity Others 75.3% Page 6 of 20

Sugar Revenue Sugar Revenue Sugar Sales Volume (‘ 000 Ton) & Price (Baht) Unit: Baht million Sugar - Domestic Domestic Sales Volume Domestic Selling Price * Sugar - International International Sales Volume International Selling Price 8,983 983 729 729 8,797 797 800 Molasses 19 19,708 9,000 385 385 407 407 19,000 454 454 17,788 17 600 6,000 15,630 15 6,291 291 6,031 031 400 598 598 14,000 386 386 3,000 200 10,514 10 2,567 567 143 143 2,099 099 130 130 0 9,000 0 1H-2017 2017 1H-2018 2018 1H-2017 2017 H1-2018 2018 Molasses Sales Volume (‘ 000 Ton) & Price (Baht) Production 2016/17 2017/18 Molasses Sales Volume Molasses Selling Price Thailand Cane 93.0 134.9 MMT 5,000 4,801 801 Sugar 100.3 146.7 MBg 150 4,000 Molasses 3.9 5.5 MMT 3,757 757 100 KTIS Cane 8.7 11.6 MMT 3,000 108 108 Sugar 9.4 11.8 MBg 50 80 80 0.5 MMT Molasses 0.4 0 2,000 1H-2017 2017 1H-2018 2018 Source: Office of the Cane and Sugar Board, 31 may 2018 Note: * white & refined sugar selling price only Page 7 of 20

Pulp Revenue Pulp Revenue Sales Volume (ton) & Selling Price (Baht) Pulp - Domestic Domestic Sales Volume Domestic Selling Price Unit: Baht million Pulp - International International Sales Volume International Selling Price 761 761 34 34,132 132 800 31,004 31 004 601 601 24,000 30,000 22,321 22 22 22,143 22,000 27 27,639 639 25,651 25 651 617 617 20,000 400 20,14 20 142 493 493 20,000 19 19,218 10,000 18,000 144 144 6,494 494 108 108 5,353 353 0 0 16,000 1H-2017 1H-2018 1H-2017 1H-2018  Pulp revenue increased due to both sales volume and selling price increased  Both domestic and international selling prices were higher than last year Page 8 of 20

Ethanol Revenue Ethanol Revenue Sales Volume (‘ 000 Liter) & Selling Price (Baht) Ethanol - Domestic Domestic Sales Volume Domestic Selling Price Unit: Baht million Ethanol - International International Sales Volume International Selling Price 872 872 34 34,944 944 776 776 40,000 30 32,950 32 950 800 24 24.94 94 25 23.55 23 55 20,000 400 20 0 0 15 1H-2017 1H-2018 1H-2017 1H-2018  Ethanol revenue decreased, as a result of decreases in both ethanol sales volume and average selling price Page 9 of 20

Electricity Revenue Electricity Revenue Electricity Supplied (MWH) & Selling Price (Baht) Electricity Revenue Electricity Supplied Selling Price Unit: Baht million 300,000 3.10 3.04 04 900 3.00 2.93 93 200,000 2.90 600 2.80 824 824 100,000 2.70 300 475 475 2.60 162 162,18 185 271,16 271 166 0 0 2.50 1H-2017 2017 1H-2018 2018 1H-2017 2017 1H-2018 2018  Electricity Revenue increased, as all 3 biomass power plants commercially operated  Both sales volume and per unit sales price of electricity increased Page 10 of 20

Sugar & Bio Industry Trends Page 11 of 20

Positive Factors for Sugar  Due to dry weather and focusing more heavily on ethanol production, Centre South Brazil sugar production in 2017/18 could drop below 28 million tons against 36 million tons in the previous crop.  Dry weather in Europe might reduce EU and Russia / Ukraine export availability.  Funds have rebuilt their net short position to 149,658 as of 14 th Aug ,which is approaching the record net short position of 183,000 on 30 th Jan. Then it’s not much room for funds to accumulate net short position. Page 12 of 20

Negative Factors for Sugar  World Supply / Demand balance for 2017/18 season is expected to be surplus at around 9.7 million tons, and 5.5- 6.0 million tons surplus for 2018/19 season.  Another big crop be expected in India, which will be reach 33 million tons (32.2 million tons in previous). Then more Indian export subsidies might be announced.  Sweetener tax in Thailand is stagnating industrial sugar consumption in domestic market. Page 13 of 20

World Sugar Price – 10 Years 週足 ICE SUG11 OCT8 2008/08/01 - 2018/12/21 (NYC) 価格 USc Cndl, ICE SUG11 OCT8, Trade Price 2018/08/17, 10.55, 10.55, 10.11, 10.18 Lbs 3MA, ICE SUG11 OCT8, Trade Price(Last), 14, 21, 35, 単純 2018/08/17, 11.49, 11.58, 12.42 32 30 28 26 24 22 20 18 16 14 12 自動 2009 年 2010 年 2011 年 2012 年 2013 年 2014 年 2015 年 2016 年 2017 年 2018 年 2000 年 2010 年 Source: Reuters Page 14 of 20

World Sugar Price – 5 Years 日足 ICE SUG11 OCT8 2015/08/03 - 2018/09/13 (NYC) 価格 Cndl, ICE SUG11 OCT8, Trade Price USc 2018/08/17, 10.30, 10.36, 10.11, 10.18 Lbs 3MA, ICE SUG11 OCT8, Trade Price(Last), 14, 21, 35, 単純 22 2018/08/17, 10.56, 10.72, 10.96 21 20 19 18 17 16 15 14 13 12 11 自動 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 15 Q3 15 Q4 16 Q1 16 Q2 16 Q3 16 Q4 17 Q1 17 Q2 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 Source: Reuters Page 15 of 20

Production Surplus/Deficit World Sugar Supply / Demand Balance Source: LMC Page 16 of 20

Brazilian Real / USD vs. ICE No.11 Exchange rate(R$/US$) Sugar Price (cent/lb) Source: Reuters Page 17 of 20

BRL and THB / USD (2013-2018) 40 5 4.5 4 35 3.5 3 30 2.5 2 1.5 25 USD_THB 1 USD_BRL 0.5 20 0 01-Jan-13 01-Jan-14 01-Jan-15 01-Jan-16 01-Jan-17 01-Jan-18 Source: Investing.com Page 18 of 20

Price Comparison (2013 – 2018) Eucalyptus Pulp & Bagasse Pulp 450 550 650 750 850 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Bagas Eucal Nov-13 alyptus asse Jan-14 ptus (CIF) Mar-14 e (CFR) May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Source: RISI + Company Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Page 19 of 20