COMPANY PRESENTATION I. BRR in Brief II. 9M19 Operating Results - - PowerPoint PPT Presentation

COMPANY PRESENTATION

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I. BRR in Brief II. 9M19 Operating Results

• III. Sugar Situations

IV . Investment Update V . Q&A

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Raw and brown sugar Main Business 105 – 118 kg. Molasses 40 – 45 kg. By-product Business Filter Cake Bagasse 250 - 260 kg. 40-50 kg. Electricity Business Fertilizer Business 111.6 - 116.1 kWh 30 - 35 kg.

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99.90% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.98%

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gar Made in the Field ld

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❖ Pioneer of sugar factory in the Northeast ❖ Exceptional sugarcane field management system ❖ The nation’s Third highest sugar yield at 119 kg/ton in 2018/19 crop year, national average at 109 kg/ton. ❖ Strong ties with 13,000 contracted sugarcane growers ❖ Potential for by-products further development

BRR

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II. 9M19 Operating Results I. BRR in Brief

• III. Sugar Situations

IV . Investment Update V . Q&A

4,460 4,144 9M-2018 9M-2019

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9M19 posed lower revenues compared to 9M18, primarily because of sugar export price and category.

Total Revenue

• 7.08% y-y

Revenue Breakdown

Unit: million baht 67.31% 68.71% 15.32% 15.23% 13.01% 12.42% 4.37% 3.64% 9M-2018 9M-2019

Sugar Electricity Fertilizer Other

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4,460 4,144 4%

• 2%
• 3%
• 2%
• 1%

0% 1% 2% 3% 4% 5% 6% 7%

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 9M-2018 9M-2019 Total Revenue Net Profit Margin

Financial Highlight

9M19 reported lower net profit margin compared to 9M18 due to higher costs and expenses especially cost of sales and services that increased almost 5% from 9M18.

Unit: million baht

75.55% 80.89% 12.75% 13.45% 6.64% 7.17% 0.63% 0.41%

4%

• 2%

9M-2018 9M-2019 %Income Tax Expenses and

• thers

%Financial Costs %Selling and Admin. Expenses %Cost of Sales and Services Net Profit Margin

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9M19 reported lower EBIT margin compared to 9M18 due to higher raw material cost for electricity business, loss in refinery production process for the 1st year production, and effects from drought on lower than expected sale of fertilizer business.

Unit: million baht Unit: million baht Unit: million baht 676 597 13.61% 12.23% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 100 200 300 400 500 600 700 800 9M-2018 9M-2019

Fertilizer Business

Intersegment Rev.

• Rev. from Ex. Customers

EBIT Margin 3,292 3,143 10.36% 3.28% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 500 1000 1500 2000 2500 3000 3500 9M-2018 9M-2019

Sugar Business

Sugar - Domestic Molasses - Domestic Sugar - International EBIT Margin 796 732 43.72% 41.12% 35.00% 37.00% 39.00% 41.00% 43.00% 45.00% 47.00% 49.00% 100 200 300 400 500 600 700 800 900 9M-2018 9M-2019

Electricity Business

Intersegment Rev.

• Rev. from Ex. Customers

EBIT Margin

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• III. Sugar Situations

I. BRR in Brief II. 9M19 Operating Results IV . Investment Update V . Q&A

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10.96 10.90 12.17 12.50 12.20 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 2014/15 2015/16 2016/17 2017/18 2018/19

Yield (Ton/Rai) ACREAGE / CANE CROP Crushing update for 2019/20

• Started from Dec 1, 2019, has crushed

138,843 tons, sugar 11,187.90 MT

129,000 168,000 178,000 190,000 200,000 240,000 240,000 200,000 1.75 1.85 85 1.95 2.06 06 2.21 21 3.15 15 2.93 2.3

0.5 1 1.5 2 2.5 3 3.5 50,000 100,000 150,000 200,000 250,000 300,000

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20*

Acreage (Rais) Cane (million tons)

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BRR cane yield is above national average by 19%, 29%, 32% and 17% in four crop years respectively due to the favorable weather as well as farm management.

9.15 9.45 9.45 10.4 10.9 12.17 12.5 12.2 2015/16 2016/17 2017/18 2018/19 Ton/Rai

National Ave BRR

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Forecasting 2019/20, BRR would crush 2.30 million ton cane, produce sugar 271,446 MT and molasses 92,000 MT, the reducing cane volume caused by effect from drought as well as lower cane price.

Unit: tons

231,408 234,686 251,696 378,186 353,349 271,446 79,016 94,013 86,337 126,236 137,443 92,000 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20*

Sugar Molasse

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DOMESTIC 20%

EXPORT 80%

Retails Modern Trade

Retails, 99% Modern Trade, 1%

53.10% 11.26% 9.28% 6.57% 9.61% 10.17%

Sugar Export Destination 2018/19

Indonesia (106,723.28 MT) China (22,638.44 MT) Tanzania (18,661.00 MT) Senegal (13,200.00 MT) South Korea (19,320.00 MT) Others (20,446.90 MT) Africa Asia Oceania USA 15.80% 83.36% 0.56% 0.29%

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Experts agreed that the preference for ethanol in Brazil should cut supply of sugar by 2 million MT, sugar production should stay around 26 - 27 million MT.

✓

The United States is facing a “frightening” sugar crisis as a result of the unstable weather that has damaged crops and forced the country to increase imports. Heavy rainfall, snow and

• ff-season cold affect sugarcane and sugar beet crops in major states this year. On

Tuesday, the US Department of Agriculture (USDA) once again cut estimates for US production: total production is forecast to fall 8% from last season to 7.5M MT. Because of problems in domestic production, the US will be forced to increase sweetener imports, and the USDA has increased its projected purchases by 22%. But getting these remittances may not be an easy task, even after the government has already intervened to secure the supply.

✓

High demand for ethanol over the past two years and prospects for growth have affected the way mills direct their raw material. In 2017/18, for example, 53.5% of sugarcane was directed to ethanol production. In the following crop, the index rose to 64.8% . And in the accumulated from 2019/20 until the first half of November, this value already reaches 65.2%. This strategic decision also affects the direction of investments in the sector.

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Due to the drought since December 2018 to April 2019 coupled with competition from

• ther crops – cassava, corn and rice, cane volumes for 2019/20 nation-wide are expected

to be around 105 +/- million tons or 21.6% lower than 2018/19.

✓

Initial projection for 2019/20 crop year: + Lower Thai production; + Lower Australian production; + Lower Pakistan export; + Possible EU and US rising import;

• India still surplus despite the possible weather problem; and

+/- Brazil’s ethanol parity to sugar.

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Bearish factors Bullish factors 1) US – China trade war 2) Geo – political instability affecting oil & currencies 3) India’s sugar stock to be exported 1 4) Big release of China domestic stocks rather than increase raw imports in 2020 1) Emerging market currencies and oil rebound 2) Ethanol surprises in India and Brazil sugar output below 22 million MT 3) India exports program disappointment 4) Asian crops shrinking further

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Unit: Million MT

2018/19 2019/20 ISO + .64

• 6.12

F.O. Licht

• .59
• 6.53

Marex

• 1.05

na Datagro

• 1.58

na Kingsman na

• 6.16

INTL FC Stone

• .7
• 7.7

Production Estimated by Countries 2018/19 & 2019/20 Countries 2018/19 2019/20

Australia 4.5 4 C/S Brazil 26.6 27 China 10.4 10.4 EU 17.1 17.3 India 33 26 - 27 Thailand 14.5 12

Unit: Million MT

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IV . Investment Update I. BRR in Brief II. 9M19 Operating Results

• III. Sugar Situations

V . Q&A

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✓ The 1,000 tons/day sugar refinery

project was already completed. This year (2019/20) has plan to improve the productivity.

✓ Products:  Refined Sugar  White Sugar

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✓ Company: Sugarcane Ecoware Co., Ltd. ✓ Project: Produce bio-degradable packages from

bagasse

✓ Estimated investment Cost: 350 Million THB ✓ Current status & timing of project: under the test

run and to commencement by February 2020

Testing run…

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V . Q&A I. BRR in Brief II. 9M19 Operating Results

• III. Sugar Situations

IV . Investment Update

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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. For more information, please contact: IR@buriramsugar.com