Kaset Thai International Sugar Corporation PCL 1 June 2017 Page 1 - PowerPoint PPT Presentation

Kaset Thai International Sugar Corporation PCL 1 June 2017 Page 1 of 21

Agenda  Q1-2017 Operating Results  Projects in Progress  Sugar & Bio Industrial Trends Page 2 of 21

Q1-2017 Operating Results Page 3 of 21

Summary of Operating Results - 1 Total Revenues Total Expenses Net Profit Unit: Baht million Losses on Forex & Tax Expense Net Profit Income Tax Benefits Financial Costs Other Income Selling & Admin. Expenses Sales & Services Revenues Cost of Sales & Services 4,333 33 4,382 382 3,964 964 5,000 1,000 3,552 52 43 43 144 20 20 80 80 110 110 76 76 881 780 412 412 2,500 500 4,340 340 3,834 834 3,227 2,69 696 50 50 0 0 Q1-2016 1-2016 Q1-2017 1-2017 Q1 Q1-20 2016 Q1 Q1-20 2017 Q1 Q1-20 -2016 Q1 Q1-20 -2017  Total revenues decreased due to lower revenues from sugar business  Total expenses were much lower than last year  Net profit was much higher than last year Page 4 of 21

Summary of Operating Results - 2 Sales & Service Revenues Gross Profit & Margin 5.7% Unit: Baht million GP - Sugar GPM - Sugar 5.7% GP - Bio GPM - Bio Sugar 8.6% 60% Paper Pulp 4.9% 48.1 .1% Ethanol 50% Q1-2016 1,138 138 1,112 112 41.6 .6% Electricity 40% 1,000 507 507 520 520 Others 75.1% 30% 24.1 .1% 18.2 .2% 20% 593 593 630 630 7.3% 0 10% Q1-2016 1-2016 Q1-2017 1-2017 6.4% Sugar  Gross Profit increased due to 11.4% Paper Pulp better cane quality and better Q1-2017 Ethanol 6.6% Electricity sugar production efficiency Others 68.2%  Portion of revenue from Sugar business decreased Page 5 of 21

Sugar Revenue Sugar Revenue Sugar Sales Volume ( ‘ 000 Ton) & Price (Baht) Unit: Baht million Sugar - Domestic Domestic Sales Volume Domestic Selling Price * 3,259 259 Sugar - International International Sales Volume International Selling Price 227 227 17 Molasses 19,6 ,635 19,7 ,735 2,615 615 203 203 3,000 19,000 200 232 232 139 139 166 166 16,1 ,104 1,859 859 2,000 1,272 272 14,000 100 79 79 1,000 11,2 ,205 1,180 180 1,111 111 61 61 60 60 0 9,000 0 Q1-2016 1-2016 Q1-2017 1-2017 Q1-20 1-2016 16 Q1-20 1-2017 17 Molasses Sales Volume (‘000 Ton) & Price (Baht) Production 2015/16 2016/17 Molasses Sales Volume Molasses Selling Price Thailand Cane 94.0 93.0 MMT 5,000 4,624 624 Sugar 97.8 100.3 MBg 150 4,000 Molasses 4.3 3.9 MMT 3,811 811 100 KTIS Cane 7.5 8.7 MMT 3,000 Sugar 7.2 9.4 MBg 50 53 53 50 50 Molasses 0.4 0.4 MMT 0 2,000 Q1-2016 1-2016 Q1-2017 1-2017 Source: Office of the Cane and Sugar Board, 4 may 2017 Note: * white & refined sugar selling price only Page 6 of 21

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 24,7 ,790 400 24,000 20,000 254 254 13,038 038 212 212 22,000 21,6 ,631 20,2 ,233 200 8,874 874 193 193 20,000 10,000 156 156 19,2 ,246 10,052 052 6,303 303 18,000 56 56 60 60 2,987 987 2,571 571 0 0 16,000 Q1-20 Q1 -2016 Q1-20 Q1 -2017 Q1-20 Q1 -2016 Q1-20 Q1 -2017  Pulp revenue increased due to both domestic and international pulp sales volume increased  Domestic and international selling prices were lower than last year Page 7 of 21

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 17,990 990 439 439 20,000 30 16,355 355 374 374 400 25 24.3 .38 22.8 .89 10,000 200 20 0 0 15 Q1-20 Q1 -2016 Q1 Q1-20 -2017 Q1-20 Q1 -2016 Q1 Q1-20 -2017  Ethanol revenue increased due to sales volume increased and domestic selling price also increased Page 8 of 21

Electricity Revenue Electricity Revenue Electricity Supplied (MWH) & Selling Price (Baht) Electricity Revenue Electricity Supplied Selling Price Unit: Baht million 3.30 400 3.20 3.21 100,000 3.10 2.94 3.00 2.90 200 50,000 2.80 83,612 12 76,833 33 246 246 246 246 2.70 2.60 0 0 2.50 Q1-2016 1-2016 Q1-20 1-2017 17 Q1-2016 1-2016 Q1-2017 1-2017  Electricity Revenue maintained at the same level as the previous year  Per unit selling price decreased due to lower FT Page 9 of 21

Dividend Payment  AGM 2017 held on 24 April 2017 approved:  Legal Reserve of Baht 11,249,693  the dividend payment of Baht 386,000,001 = Baht 0.10 per share  Record Date is scheduled on 4 May 2017 [Closing the share register book is scheduled on 5 May 2017] [Ex-Dividend is scheduled on 2 May 2017]  Dividend payment date is scheduled on 16 May 2017 Page 10 of 21

Projects in Progress Page 11 of 21

Projects in Progress  Biomass power plant (50MW)  RPBP started commercial operation since 23 March 2017 Page 12 of 21

Sugar & Bio Industry Trends Page 13 of 21

Positive Factors for Sugar  Due to the consecutive two years supply deficit, the sugar stock level is historically low.  India announced to allocate duty-free import quota of 0.5 mil tons. And based on their supply/demand balance, more imports will be required before the end of the crop.  Brazilian government is considering to reinstate the tariff on import of ethanol to 16-20% which was stopped since April 2010. It might promote to increase ethanol production ratio  AFTA give better access and competitiveness to ASEAN countries, where is steady consumption growth and continue to be in deficit. Page 14 of 21

Negative Factors for Sugar  World Supply / Demand balance prospect for 2017/18 season is expected to return to surplus at around 2.0-4.0 million tons.  Funds reduced their long position and finally turned to net short. It seems difficult to support by funds again in short term.  Deregulation in EU sugar industry will encourage refined sugar exports from late 2017.  Lower oil prices push Brazilian gasoline down further, and it might promote to produce sugar than ethanol.  Thailand attempts to modify the current quota system to avoid being challenged by Brazil at the WTO. It has a potential to change the market environment. Page 15 of 21

World Sugar Price Source: Reuters Page 16 of 21

Production Surplus/Deficit World Sugar Supply / Demand Balance Source: LMC Page 17 of 21

Brazilian Real / USD v.s. ICE No.11 R$/US$ Exchange Rate vs. ICE No.11 ICE No.11 BRL 25.00 4.50 22.50 4.25 20.00 4.00 17.50 3.75 15.00 3.50 12.50 3.25 10.00 3.00 7.50 2.75 6/1/2015 10/1/2015 2/1/2016 6/1/2016 10/1/2016 2/1/2017 6/1/2017 Source: Reuters Page 18 of 21

Price Comparison (2013 – 2017) Eucalyptus Pulp & Bagasse Pulp 450 550 650 750 850 Jan-13 Mar-13 May-13 Jul-13 Bagasse ( Baga Euc Eucal Sep-13 alyptus Nov-13 ptus ( e (CF Jan-14 CFR) (CIF Mar-14 CIF) R) 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 Source: RISI Jan-17 Mar-17 Page 19 of 21

Ethanol Consumption Development Million Liter Per Day March’17 (MLPD) *EtOH cons. = 3.73 MLPD 4.0 3.81 1 3.73 73 3.73 3 3.67 67 3.62 2 3.61 61 3.65 5 3.57 7 3.54 4 3.50 0 2017 3.48 8 3.46 6 3.55 5 3.44 4 3.35 5 3.31 1 3.48 8 3.23 3 3.27 7 2016 3.17 7 3.42 2 3.30 0 3.28 8 2015 3.19 9 3.17 7 3.16 6 3.15 5 3.0 3.19 9 3.12 2 3.11 1 3.09 9 3.05 5 2.98 2.89 9 2.85 5 2.84 4 2.75 5 2014 2.65 5 2.56 6 2.0 Ja Jan Fe Feb Mar Apr May Jun Ju Jul Ju Aug Sep Oct Oct Nov Nov Dec Dec Ethanol Consumption Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (MLPD) 2014 2.56 2.65 2.75 2.89 2.85 2.84 2.98 3.09 3.05 3.11 3.19 3.42 2015 3.12 3.16 3.15 3.30 3.17 3.19 3.28 3.23 3.17 3.27 3.31 3.55 2016 3.35 3.48 3.44 3.65 3.50 3.46 3.57 3.73 3.54 3.48 3.62 3.81 2017 3.61 3.67 3.73 Note: * Ethanol consumption is calculated from minimum blending ratio Page 20 of 21