OPPORTUNITY DAY WEDNESDAY, JUNE 10, 2015 OPPORTUNITY DAY - PowerPoint PPT Presentation

OPPORTUNITY DAY WEDNESDAY, JUNE 10, 2015

OPPORTUNITY DAY WEDNESDAY, JUNE 10, 2015

Agenda I. BRR in Brief II. Operating Results – Q1 - 2015 III. Sugar Situation IV. Investment Update V. Q&A 2

Company Structure Buriram Sugar Public Company Limited BRR Sugarcane Sugar Mill Electricity I Electricity II Electricity III Fertilizer Development BSF BEC BPC KBF BPP BRD Establish in Establish in 2005, Establish on Establish in   Establish in 2011,    • Establish on the 2 nd electricity 1960, produce produce and sale 2011, produce 1996, with January 23, and sale raw electricity from factory of BRR and sale the mission 2015 to biomass power and brown with capacity 9.9 fertilization with on research support future sugar both plants with MW capacity 30,000 and third electricity capacity 9.9 MW domestic and COD on April 7,  tons/year development project. The international Since Jun 2012,  2015. Sale 8 MW to improve Licensed  construction of with capacity BEC sale electricity to sugarcane production and 17,000 BRR 3 rd electricity to Provincial quality and sale of organic tons/day electricity Provincial Electricity Agency productivity. fertilizer and factory has Its electricity Electricity Agency  under FiT (Feed- organic with maximize capacity is 10 in Tariff) system. started since MW volume 8 MW chemical May 16, 2015. fertilizer Main business By-product business Supporting Business 3

BRR in Brief  Pioneer of sugar factory in the Northeast.  The third highest sugar yield in Thailand (118 kg sugar/ ton cane in 2013/14 crop year and 119 kg sugar/ ton cane in 2014/15).  Exceptional sugarcane field management system.  Strong ties with 15,000 contracted sugarcane growers.  Bio-Energy business development with growth potential. 4

Cane fields 5

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 Forecast production year 2014/15 • Contract farm area 168,000 Rai • Sugar per Rai 12.34 tons per Rai 30 - 35 kg. 40-50 kg. • Sugar content 13.00 C.C.S. 6

Agenda I. BRR in Brief II. Operating Results – Q 1 - 2015 III. Sugar Situation IV. Investment Update V. Q&A 7

Net Income Analysis Unit: Baht million 140.81 85.65 Q1'2014 Q1'2015  The company profit increased from prior period by Baht 55.16 million due to the rise in sugar sale. 8

Operating Results • Total Revenue Unit : million Baht  Total revenue increased due to the Q-Q 1,387.91 company has recorded a revenue from a delivery of exported sugar 996.39 with the amount of 81,700 ton, 43,070 tons higher than the same period last year. Q1'2014 Q1'2015 • Revenue Breakdown • Gross Profit Margin Q-Q Q-Q 25% 25% 4.73% 7.65% 7.02% 8.23% 1.77% 5.46% 86.48% 78.66% Q1'2014 Q1'2015 Q1'2014 Q1'2015 Sugar Electricity Fertilizer Other 9

Sugar Business • Revenue from Sugar • Sale Volume Unit: Baht million Unit: Tons Q-Q Q-Q 880.31 73,387 40,970 422.70 38,217 31,814 213.59 159.29 161.26 150.06 11,257 8,328 Q1'2014 Q1'2015 Q1'2014 Q1'2015 Brown sugar Raw sugar Molasses Brown sugar Raw sugar Molasses  Revenue increased due to the delivery of 81,700 tons of sugar, 43,070 tons higher that the same quarter of the previous year. 10

Sugar Business (Cont ’) • Average Price Sold Unit: Baht per tons Q-Q 19,126 18,975 13,287 11,995 4,220 3,663 Q1'2014 Q1'2015 Brown sugar Raw sugar Molasses • Gross Margin • Gross profit per 1 ton of sugar %GP Unit: Baht 1,594.48 16% 16% 1,529.75 Q1'2014 Q1'2015 Q1'2014 Q1'2015 11

Fertilizer Business • Revenue • Sale Volume Unit : million Baht Unit : Ton Q-Q 7534 6364 97.37 82.25 Q1’2014 Q1’2015 Q1'2014 Q1'2015 • GP 10%  The increase was due to the 8% company has sold more 1,170 tons than prior period. Q1'2014 Q1'2015 12

Electricity Business • Revenue • Sale Volume Unit: Baht million Unit: Million unit Q-Q 16.53 15.57 54.63 51.54 Q1'2014 Q1'2015 Q1'2014 Q1'2015 • GP Q-Q 56% The revenue and GP was lower 54% due to the average selling price, FT, to EGAT was decreased from 0.48 Baht per unit to 0.41 – 0.40 Baht per unit. Q1'2014 Q1'2015 13

Agenda I. BRR in Brief II. Operating Results – Q 1 - 2015 III. Sugar Situation IV. Investment Update V. Q&A 14

BRR Production • Contract farming area and sugarcane crushed • Produced sugar volume 250,000 3 2.51 118,374 2.5 200,000 1.95 1.85 95,850 1.75 2 1.58 75,980 150,000 1.48 87,527 74,158 66,112 1.5 1.17 302,512 100,000 244,950 1 207,138 183,938 173,293 162,512 50,000 0.5 98,000 118,000 107,900 129,000 168,000 178,000 200,000 2010/11 2011/12 2012/13 2013/14 2014/15* 2015/16* 0 0 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15* 2015/16* Sugar Molasse Area (Rais) Cane crushed (million tons) • Yield per Rai  Though there was some weather 12.61 issues, sugarcane size has grown from 12.34 1.77 million tons in 2013/14 to 1.95 11.56 11.01 million tons in 2014/15. 9.73 8.94 8.68  The sugar export volume in 2015 is around 180,000 tons. 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15* 2015/16* Note : * Estimate figure 15

Buriram Performance - Total cane crushed for 2014/15 crop year is 1.951 million tons. - Total sugar production is 231,408 tons. - Sugar yield is 118.6 kg/ton cane. - Sugar Content 13.48 CCS. 16

Sugar Price – NY No. 11 (June 4, 2015) 17

Sugar No. 11 Price (June 8, 2015) Source: Barchart 18

World Sugar Situation  International Sugar Organization (ISO) recently forecasted a small global sugar surplus of 620,000 tons in 2014/15. Deficit is expected in 2015/16.  Global sugar consumption is to rise to 171.50 million tons or 1.8% in 2014/15, compare to 168.40 million tons in 2013/14.  Indian government approved export subsidy program for 1.40 million tons of raw sugar for 2014/15 marketing year on February 19, 2015. Rate of subsidy in INR 4,000 per ton or US$ 65.  The likelihood of El Nino phenomenon in 2015 resulted in higher rainfall in the South and drier weather in the North. 19

World Sugar Situation  Vietnamese authority worries about its own sugar industry after the cut in sugar tariffs to 5% under ASEAN Trade in Goods Agreement (ATIGA) in 2018.  Due to prolong dried weather, Philippines has cut its sugar export to the US. 20

World Sugar Consumption Trend 201 MT 180 MT 21

Agenda I. BRR in Brief II. Operating Results – Q 1 - 2015 III. Sugar Situation IV. Investment Update V. Q&A 22

Projects Sugar Expansion Project Sugar’s expansion project to 17,000 TCD has completed and started operate since December 2, 2014. The plan to expand to 22,000 TCD in 2015/16 crop year is underway. 23

Projects Electricity Project BPC, a second electricity plant had COD on April 7, 2015. Amount 8 MW sold to PEA with new pricing system, FiT (Feed-in Tariff). The construction of third electricity plant, Buriram Power Plus (BPP) has started since May 16, 2015 and is expected to complete in early 2016. 24

Agenda I. BRR in Brief II. Operating Results – Q 1 - 2015 III. Sugar Situation IV. Investment Update V. Q&A 25

Disclaimer The views expressed here contain some information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Buriram Sugar Public Company Limited. Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. 26