Digital Roadshow @ SET Thursday, March 15, 2018 Pattarapong Pongsawasdi Deputy Managing Director Buriram Sugar Plc. Email: pattarapong.pong@buriramsugar.com
AGENDA I. BRR in Brief II. Operating Results – 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 electricity capacity 9.9 MW domestic and COD on April 7, ▪ tons/year improve demand with international Since Jun 2012, ▪ 2015. Sale 8 MW sugarcane ▪ Licensed capacity of 9.9 with capacity BEC sale electricity to quality and production and MW. It is now 24,000 electricity to Provincial productivity. sale of organic tons/day selling Provincial Electricity Agency fertilizer and electricity to Its electricity Electricity Agency ▪ under FiT (Feed- organic capacity is 1 8 with maximize in Tariff) system. BSF. MW volume 8 MW chemical 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 ➢ The nation’s Third highest sugar yield at 120 kg/ton, national average at 106.92 (as of 14/03/18). ➢ 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 2,900,000 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 – 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 525 363% 113 5,740 4,579 Revenue Net Profit - Revenue from sugar export rose by 37 % from 2.2 billion BT to 3.1 billion BT mainly from rising world sugar price during late 2016 to early 2017. - Revenue from electricity sale rose by 28 % or 108 million BT . 7 น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field
REVENUE BREAKDOWN Unit: Million Baht 3.58% 11.14% 12.27% 2.93% 12.25% 10.32% 73.01% 74.51% 2016 2017 Sugar Electricity Fertilizer 8 น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field
Revenue from sugar Unit: Million Baht 3,122 2,283 186,227 MT 171,104 MT 1,728 1,538 60,161 MT 64,383 MT 2016 2017 Domestic Sales Foreign Sales 9 น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field
Revenue from Electricity and Fertilizer Electricity Performance 1000 250 Unit: Million Baht 815 800 230 200 529 600 150 154 400 100 200 50 0 0 2016 2017 Revenue EBIT Fertilizer Performance 740 750 120 700 100 628 99 650 80 83 600 550 60 2016 2017 Revenue EBIT 10
AGENDA I. BRR in Brief II. Operating Results – 2017 III. Sugar Situations IV. Investment Update V. Q&A น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field
CONTINUOUS GROWTH YIELD ACREAGE / CANE CROP 240,000 3.1 250,000 13.7 2.9 2.9 189,000 200,000 184,000 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 +1.39% +7.27% +11.72% 87,525 +12.62% 333,500 251,696 234,626 231,408 207,138 183,928 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18* Sugar Molasse ▪ As of March1, 2018, BRR has crushed 1.7 million MT of cane, producing 201,415 MT of sugar with the sugar yield of 118.46 kg/ton cane (The 3 rd highest in the country). 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 2,212,736 247,848 86,337 331,910 2017 / 18F 250,000 2,900,000 333,500 112,000 420,000 2018/19F 260,000 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 Export by Destinations domestic sugar 11.83% 32 % 4.70% Indonesia (96,696.60 MT) Kenya (32,823.00 MT) 5.98% China (15,205.00 MT) 68 % 8.14% 51.77% Tanzania (11,175.00 MT) export sugar Sri Lanka (8,775.00 MT) Others (22,088.70 MT) 17.57% 75.00 % 100% 80% 60% 23.48 40% % 20% 1.52% 0% A S I A Retails Modern A F R I C A O T H E R S Trade
Sugar Price : NY No. 11 (Mar 14, 2018) Source: Barchart
WORLD SUGAR SITUATION (1/2) 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 above 110 million MT, mostly from acreage expansion. The Indian Sugar Mills Association (ISMA) revised its estimate for ✓ 2017/178 sugar production to 29.5 million MT, up from its earlier estimate of 26.1 million MT. Green Pool, a consulting company, forecasts Brazilian ’ s Center South ✓ region sugar output in 2018/19 at 32.7 million MT or 3.1 million MT lower than previous year due to the prospect of mills turning more cane (57.3% of the crop) into ethanol rather than sugar. Besides, ethanol use will also be supported by RenovaBio program , which is expected to come into force by 2020 and it will create a carbon credit scheme to increase the value of biofuels based on Brazil's commitments under the Paris climate change agreement. Brazil is the Third World's largest fuel consumer, and under the COP21 it has committed that by 2025 it will decrease its carbon emissions by 37%. น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field
WORLD SUGAR SITUATION (2/2) The International Sugar Organization raised its forecast for a projected global sugar surplus in 2017/18 (October/September) to 5.15 million MT, up from a previous forecast of 5.03 million MT. The upward revision was driven by lower than previously anticipated consumption of 173.55 million MT for 2017/18, down from a prior forecast of 174.41 million MT. China ’ s 2017/18 production is expected at 10.2 million MT, rose from 9.3 million MT in 2016/17 mostly from acreage expansion. China ’ s import volume is expected around 5 million MT in 2018 and could go as high as 6.5 million MT in the next 5 years. European Union ’ s sugar production is expected to reach 20.1 million MT in 2017/18 as beet planted area has increased by 13%. After the liberalization of sugar regime starting October 1, 2017, EU will play bigger role in global sugar trade. น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field
ASEAN Economic Community (AEC) Info ASEAN Thailand Population 598 mln. 67 mln. Sugar 17 mln.tons 10 mln.tons production Sugar imports 5-6 mln.tons 0.0 mln.tons Sugar Net Net importers balance exporter 20 น ้ำตำลสร้ำงในไร่ Sugar ar Made de in the Field
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