Disclaimer Certain forward looking statements may be made in the - - PDF document

SET OPPORTUNITY DAY 2Q18 RESULTS PRESENTATION 13 SEPTEMBER 2018

1

Disclaimer

Certain forward looking statements may be made in the course of the presentation. These forward-looking statements generally can be identified by use of statements that include words or phrases such as LST , UPOIC and UFC or we or our management “believe”, “expect”, “anticipate”, ”intend”, ”plan”, ”foresee”, ”project”, ”may”, “will”, “shall”, or other similar words or phrases. Similarly, statements that describe LST , UPOIC and UFC ’s objective, plans or goals also are forward-looking statements. These statements involve known and unknown uncertainties and risks that could differ materially from actual results, performance or events. The forward-looking statements contained in the slides are not and should not be constructed as representations of the future performance of LST , UPOIC and UFC and that such statements are an expression

• f the Company’s reviews based on its current view and certain assumptions including, but not limited to,

prevailing economic and market conditions and currently available information. The reader or the listener is cautioned to not unduly rely on these forward-looking statements. We do not undertake any duty to publish any update or revision of any forward looking statements. 2

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)
• Financial Overview (LST)
• Business Overview (UFC)
• Q&A

3

Philosophy of Lam Soon Group

Vision

“The leading food and food related company with sustainable growth and development”

Mission

• Manufacturing high quality and nutritious food product together.
• Employing advance technology.
• Building trust and confidence toward our customers.

4

Our Development

1974 1978 1996 1983 2004 2003 2008 2007 2006 2009 2011 2012 .. 2018

Corporate Milestone

1974 Bangkok Edible Oil was founded 1978 Established Vegetable Oil Refinery at Bang Poo Industrial Estate 1983 Lam Soon (Thailand) Co,. Ltd was established 1996 LST was listed on the Stock Exchange of Thailand 2003 Became a major shareholder of “UPOIC” 2004 Acquisition of “UFC” 2008

• Joined the Roundtable on Sustainable Palm Oil

(RSPO)

• Constructed Biogas power plant at Trang mill

1974 1978 1996 1983 2004 2003 2008 2007 2006 2009 2011 2012 .. 2018

Product Development

5

2006 Launched new product targeted at health conscious consumers under the brand “Naturel” 2007 Implemented Electricity power project under Clean Development Mechanism (CDM) and Carbon Credit Program 2009 “Jade” palm cooking oil was the first cooking oil awarded “Carbon Label” 2011 Launched soy milk products under the “UFC HomeSoy” 2012 UFC Launched Coconut water 2013 UFC launched “Chrysanthemum plus Lo Han Gua” 2014 LST launched the multipurpose - chocolate under “Daisy” brand 2015 LST launched Naturel 100% Coconut cooking oil and Naturel 100% Sunflower cooking oil. LST lauched Yok Extra and Naturel Rice Bran Oil Gold UFC lauched "The Asian Variants" 100% coconut water with real juice , Homesoy new flavor and Chooze new flavor. LST launchedNaturel Forte 100% Extra Virgin Coconut Oil UFC launched new flavor Homesoy , UFC velvet almond milk , Bio-Home dishwash liquid and Bio-Home kitchen cleaner & multi surface cleaner LST launched Naturel 100% Corn Oil , Organic Rice and butter blend products UFC launched 100% watermelon water , UFC velvet almond milk , UFC velvet coconut milk and UFC velvet coconut milk with coffee blend and chocolate flavor. 2016 2017 2018

Group Structure

Lam Soon (Thailand) UFC UPOIC

98.83% 69.96% 100.00% 50.00% 99.98%

Union Frost Siam Elite Palm Phansrivivat

Phansri (Concession – Chaiburi) Prachakvivat (Concession – Khiansa)

100.00% 99.99% 99.99%

6

Strong Fundamental i.e. Fully Integrated Supply Chain

Raw Material Acquisition Production Sales & Marketing Nursery Plant Oil Palm Plantation Crushing Mill Value Adding Refinery Distribution Channel Start from 2 locations in Oil palm Total Build Germinated Seeds JV with Start from nursery plant to ensure product quality 2 locations in Trang and Krabi with combined capacity 120 tons FFB / hr. Oil palm planted area Total capacity 368,650 tons /year Build Awareness and brand recognition Cost saving from integrated distribution channel

• f LST and UFC

Fully Traceability – Quality & Profitable

JV with investment arm of CIRAD to develop

• wn palm

seeds species

7

Symbols of Excellence

Our Products

Upstream

Seedling

Core Products Diversify

Germinated Seeds

Other Products

Crude Palm Oil Crude Palm Kernel Oil Electricity Power from Biogas

9

10

New Product - NATUREL

NATUREL 100% CORN OIL Phytosterols can reducing blood cholesterol level Good for your heart NATUREL Organic Riceberry High Antioxidants and organic products High Fiber and gluten free

11

No cholesterol One for all healthy menus … Good Health Join the Naturel Living. Soft and delicious One for all healthy menus … Good Health Join the Naturel Living.

New Product – ZEST

12 New Package Zest Gold Margarine Easy to Use Excellent butter aroma Omega 3 6 9 Zest Butter Blend Ingredient for all types of bakery applications

New Product - UFC

UFC Refresh 100% Watermelon Water is 100% Natural made from specially selected authentic Thai watermelons with the just-right sweetness and excellent unique aroma and taste. Contains L-Citrulline and L-Arginine, natural source of amino acids help blood vessels relax and improve circulation and antioxidants with Lycopene, very effective at protecting cells from damage and may help lower the risk of heart disease, reducing hypertension and lower the blood pressure. 13 UFC Velvet Almond Milk is a heart-healthy, low-calorie and nutritious beverage made from the quality Australian whole almonds and water. Almond milk has a pleasant, nutty flavor and creamy texture. It is added with “Aquamin” 100% natural marine plant-based calcium. Derived from the red algae Lithothamnion found in the pristine waters off the coast of Iceland. The plant-based calcium naturally absorbs trace minerals from the surrounding seawater, making it easier for your body to absorb and store the calcium.

New Product - UFC

UFC Velvet Coconut Milk is made from selected quality Thai Coconuts. It is added with “Aquamin” 100% natural marine plant-based calcium. Derived from the red algae Lithothamnion found in the pristine waters

• ff the coast of Iceland. The plant-based calcium naturally absorbs

trace minerals from the surrounding seawater, making it easier for your body to absorb and store the calcium. 14 Enjoy a delicious and velvety taste of Coconut Milk with 2 varieties ie. Coconut Milk with Coffee Blend and Coconut Milk with Chocolate Flavour. The coconut milk is a plant-based alternative to traditional dairy milk, suitable for vegans and those who are lactose intolerant or allergic to dairy milk.

Share Capital Information

Symbol LST Share Price ( 11 SEP 2018) 4.76 THB Historical price :

• 52-week high

9.55 THB

• 52-week low

4.40 THB

• No. of paid up shares :

820 Million Par value : 1 THB/Share Market Capitalization : THB 3,903 mn. Stock Information

Source: www.setsmart.com

Top 10 Shareholders (As of May 8, 2018) Percentage of Paid-up Capital (1) Lam Soon Holding Co., Ltd. 42.11 (2) Hap Seng Consolidated Berhad 20.00 (3) Lam Soon Cannery Pte Ltd. 7.48 (4) CGS-CIMB Securities (Singapore) Pte Ltd 6.47 (5) LGT Bank (Singapore) Ltd 4.65 (6) Mr. Suwit Laohapolwattana 2.28 (7) CGS-CIMB Securities (Hong Kong) Ltd 1.62 (8) Ms. Supaporn Smittinun 1.20 (9) Thai NVDR Co.,Ltd. 1.00 (10) The Hongkong and Shanghai Banking 0.71

3 years share price performance (%) Dividend Payout Policy

The Company’ s policy is to pay dividends to shareholders of an amount not less than 40% of its net earnings after tax subject to the Company’s future investment and funding requirements.

Source: www.setsmart.com Source: www.setsmart.com

15

0.47 0.34 0.25 0.17 0.29

0.20 0.20 0.15 0.10 0.18 42.6% 58.8% 60.0% 59.4% 61.4% 0.0% 20.0% 40.0% 60.0% 80.0%

• 0.20

0.40 0.60 0.80 1.00

2013 2014 2015 2016 2017

EPS (Baht/Share) DPS (Baht/Share) Dividend Payout Ratio (Based on operational year)

• 40.0%

0.0% 40.0% 80.0% 120.0% 160.0%

LST Food SET

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)
• Financial Overview (LST)
• Business Overview (UFC)
• Q&A

16

UPOIC’s Philosophy

Vision

“The leading sustainable palm oil business company with operational excellence, international best practices, and world-class competitive strengths.”

17 Mission

• Building capacity in entire palm oil business value chain from seeding, germinating, plantation, crop oil extraction and related

business so as to be competitive and recognizing in the future

• Performing the high value palm oil business by focusing in research and development of palm seed breeding of seed with

high yield and adaptable to a range of cultivation area to fulfill grower requirements as well as providing the best services.

• Employing advanced technology in production, research and development with international management system as well as

taking care of the environment, biodiversity, communities, and society.

• Always ensuring the health, safety, and welfare of all employees and building trust and confidence among our customers,

grower/suppliers and generate return to shareholders and other stakeholders appropriately.

Corporate Milestones

1978 1991 1997 1994 2003 2006

UPOIC was established Issuing new share in exchange for an 100% stake in Phansrivivat UPOIC entered into a joint venture with CIRAD to form Siam Elite Palm Co., Ltd.

2008 1978 1991 1997 1994 2003 2006

UPOIC was listed company

• n the Stock

Exchange of Thailand (SET) 1997 LST began purchasing UPOIC shares 2003 LST acquired more shares in UPOIC , and as a result became the major shareholder of UPOIC Joined the Roundtable on Sustainable Palm Oil (RSPO)

2008

18

Share Capital Information

Stock Information

Symbol UPOIC Share Price ( 11 SEP 2018) 4.28 THB Historical price :

• 52-week high

6.30 THB

• 52-week low

3.90 THB

• No. of paid up shares :

324.05 Million Par value : 1 THB/Share Market Capitalization : THB 1,387 mn. Major Shareholders (as of May 8,2018) Percentage of Paid-up Capital (1) Lam Soon (Thailand) Plc. 69.96 (2) Wattanachote Co., Ltd. 5.70 (3) Mr. Somkiat Peetakanonda 1.68 (4) Mr.Thammanoon Sahadithdamrong 1.17 (5) Wattanasophonpanich Co., Ltd. 1.12 (6) Ms.Duangkamol Thanissaranont 0.74 (7) GreenSpot Co., Ltd. 0.73 (8) Mr. Chawalit Tsao 0.71 (9) Mrs. Nancy Chalermkanjana 0.63

Source: www.setsmart.com Source: www.setsmart.com

Dividend Payout Policy

Remark : Dividend payment for year 2015 and 2017 were paid from retain earning

19

UPOIC has a policy of paying not less than 50% of net profit after tax as dividend.

3 years share price performance (%)

0.68 0.52 (0.02) 0.28 (0.06) 0.60 0.30 0.15 0.15 0.10 88% 58% 54% 0% 20% 40% 60% 80% 100% (0.2) 0.0 0.2 0.4 0.6 0.8 1.0 2013 2014 2015 2016 2017

EPS (Baht/Share) DPS (Baht/Share) Dividend Payout Ratio (Based on operational year)

• 80.0%
• 40.0%

0.0% 40.0% 80.0% UPOIC AGRI SET

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)
• Financial Overview (LST)
• Business Overview (UFC)
• Q&A

20

FFB Output in Thailand (2007 – 1H2018)

Generated from 5 million rai of harvested area, FFB output in 2018 expected to be about the same as 2017 at around 15 million MT.

‘000 MT

49.4% 32.0% 42.4% 26.2% 30.0% 40.0% 50.0% 60.0% 10,000 12,000 14,000 16,000

Source: Internal Trade Department

21

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H18 FFB Output 6,195 9,254 8,021 7,976 10,529 11,106 12,373 11,859 11,968 10,478 14,916 8,240 % Growth (5.3%) 49.4% (13.3%) (0.6%) 32.0% 5.5% 11.4% (4.2%) 0.9% (12.5%) 42.4% 26.2% (5.3%) (13.3%) (0.6%) 5.5% 11.4% (4.2%) 0.9% (12.5%) (20.0%) (10.0%) 0.0% 10.0% 20.0%

• 2,000

4,000 6,000 8,000

CPO Production in Thailand (2007 – 1H2018)

‘000 MT

CPO production in 2018 is likely to be at 2.6 - 2.7 million MT with the following usage:- 1) Consumption and Industrial use 1,100,000–1,200,000 MT; 2) Bio-diesel (B7) 1,100,000 MT ; 3) Potential export as a dummy variable.

1,544 1,832 1,891 2,135 2,001 2,068 1,804 2,626 1,473 46.9% 42.3% 45.6% 29.6% 20.0% 30.0% 40.0% 50.0% 2,000 2,500 3,000

22

1,052 1,544 1,345 1,288 1,473 (9.9%) (12.9%) (4.3%) 3.2% 12.9% (6.3%) 3.4% (12.8%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 500 1,000 1,500 Y2007 Y2008 Y2009 Y2010 Y2011 Y2012 Y2013 Y2014 Y2015 Y2016 Y2017 1H2018 CPO FOR FOOD,INDUSTRIAL USE, EXPORT CPO USED BY BIO-DIESEL % GROWTH Source: Internal Trade Department

5.77 6.14 5.49 4.89 4.78 4.32 4.24 4.10 4.21 4.09 3.98 3.37 3.44 4.06 3.69 3.16 3.45 4.29 4.00 6.00 8.00 1,500 2,000 2,500 3,000

FFB Output and FFB Price (O.E.R.18%)

Monthly FFB Output and FFB Price

‘000 MT Baht/ K.G.

FFB output in the Kingdom during 1H2018 was increased by 26% yoy , dragging FFB price down 22% due to the good weather condition and continual raining.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Output '16 538 717 1,063 1,158 1,096 908 806 876 920 834 812 750 Output '17 629 716 1,156 1,398 1,484 1,145 1,093 1,234 1,368 1,570 1,614 1,510 Output '18 1,403 1,321 1,652 1,495 1,324 1,045 Price '16 5.70 5.48 4.95 5.60 5.81 5.91 7.02 6.13 5.83 5.91 5.85 5.87 Price '17 5.77 6.14 5.49 4.89 4.78 4.32 4.24 4.10 4.21 4.09 3.98 3.37 Price '18 3.44 4.06 3.69 3.16 3.45 4.29 3.37 3.44 3.16 3.45 4.29

• 2.00

4.00

• 500

1,000 1,500

23

Source: Internal Trade Department

Monthly CPO Production and Oil Extraction Rate (O.E.R.)

O.E.R. ‘000 MT

Average OER in Thailand improved to around 18% however it was much lower than 20% as the standard level in Malaysia who targets to improve to 25% within 2020

17.0% 17.2% 17.3% 17.3% 17.6% 17.8% 17.6% 17.9% 17.9% 18.0% 17.8% 17.4% 17.6% 18.0% 17.8% 17.9% 17.9% 18.2% 8.0% 12.0% 16.0% 20.0% 200 250 300 350 400

24

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CPO 2016 96 120 176 188 168 148 145 164 168 153 146 132 CPO 2017 108 123 200 241 261 203 192 220 245 282 288 262 CPO 2018 246 237 295 267 237 191 O.E.R. '16 17.9% 16.7% 16.5% 16.2% 15.4% 16.3% 18.0% 18.7% 18.3% 18.4% 18.0% 17.7% O.E.R. '17 17.0% 17.2% 17.3% 17.3% 17.6% 17.8% 17.6% 17.9% 17.9% 18.0% 17.8% 17.4% O.E.R. '18 17.6% 18.0% 17.8% 17.9% 17.9% 18.2% 0.0% 4.0% 8.0%

• 50

100 150 Source: Internal Trade Department

Thailand CPO Stock Equivalent and CPO Price

‘000 MT Baht/ K.G.

The nationwide CPO stock at the end of June 2018 was about 379,672 MT which was still higher than the optimum

• level. It was a pressure on CPO price.

31.40 31.97 28.97 26.91 26.77 23.84 23.05 22.13 22.11 21.59 20.73 19.12 19.36 21.28 20.37 18.97 20.10 23.20 20.00 30.00 40.00 400 600 800 1,000 Source: Internal Trade Department

25

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CPO Stock 2016 261 215 195 213 220 223 217 229 259 290 297 293 CPO Stock 2017 237 221 275 359 448 454 443 427 466 520 533 485 CPO Stock 2018 423 400 439 420 403 380 CPO Price 2016 29.63 30.10 29.02 32.26 33.93 35.50 37.49 34.00 31.05 30.00 29.63 30.80 CPO Price 2017 31.40 31.97 28.97 26.91 26.77 23.84 23.05 22.13 22.11 21.59 20.73 19.12 CPO Price 2018 19.36 21.28 20.37 18.97 20.10 23.20 19.36 18.97

• 10.00
• 200

400

Malaysia Production of Crude Palm Oil

• 2018F : 19.8 million MT
• 2017 : 19.9 million MT
• 2016 : 17.3 million MT

‘000 MT 1,500 2,000 2,500 Y2016 Y2017 Y2018

Source : Malaysian Palm Oil Board

26

500 1,000 1,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Malaysia Palm Oil Stock

Palm oil stock in Malaysia was comparatively high due to weaken export.

‘000 MT

2,000 2,500 3,000 Y2016 Y2017 Y2018

27

Source : Malaysian Palm Oil Board

500 1,000 1,500 2,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Comparison of CPO Wholesale Price Between Bangkok and Malaysian Market

CPO prices in Malaysia and Thailand are now very close leading to export potential.

24.45 28.96 24.33 29.10 36.59 30.86 25.24 28.57 27.33 31.95 24.88 20.55 24.80 28.56 21.96 27.02 32.63 28.89 23.27 24.05 19.24 22.72 22.17 19.63

• 10.00

20.00 30.00 40.00 Y2007 Y2008 Y2009 Y2010 Y2011 Y2012 Y2013 Y2014 Y2015 Y2016 Y2017 1H18

THB/Kg.

CPO Wholesale Price in Bangkok market CPO Wholesale Price in Malaysian market

Source: Internal Trade Department Source: Nextview

28

CPO Wholesale Price in Bangkok market CPO Wholesale Price in Malaysian market

CPO price in Malaysia in July 2018 at 2,134 RM/MT was a two-year low.

Global consumption of vegetable oils from 1995/1996 to 2017/2018, by oil type

Palm oil contributes the highest portion at 33.3% of global consumption of vegetable oils , followed by Soybean oil.

Million MT

23.7 23.7 24.3 27.2 27.8 27.7 29.4 11.4 11.8 13.0 13.2 13.0 14.2 14.9 15.6 16.8 20.0 20.5 20.9 21.2 22.0 22.8 23.2 23.7 23.9 23.2 23.7 24.0 121.2 125.1 129.7 137.8 145.4 151.9 157.7 159.1 171.8 178.3 184.1 189.0 150.0 200.0

Source : Statista.com

29

15.8 37.7 39.4 42.1 44.5 47.6 50.2 55.0 55.5 58.5 61.0 64.0 62.9 19.7 35.6 37.5 36.0 38.3 40.7 42.2 42.6 42.7 48.0 51.5 53.2 56.0 11.2 17.6 18.3 20.1 22.4 23.3 23.7 23.7 24.3 8.6 10.3 9.4 10.6 11.4 16.4 20.0 71.7

• 50.0

100.0 Palm Oil Soybean Oil Canola Oil Sunflowerseed Oil Other

Factors affecting palm oil industry in 2019

• Thailand’s Food and Drug Administration (FDA) announced a

ban, which takes effect in January next year, on the domestic use and import of partially hydrogenated oils (PHO) leading to confusion and panic among the consumers.

Trans Fat

• The government of Indonesia launches the B20 biodiesel

program (increased from the existing B15 program) to absorb excess supply of CPO.

Indonesia's Biodiesel program (B20)

• The concern over the trade war between the United States

and China shaking demand for crude oil and other agricultural products.

• US sanctions limit Iran export support crude oil price.

Price of Petroleum

• Soybean prices in the U.S. and Brazil taken different paths

due to the trade war between the United States and China.

• Soybean price in US fell to lowest in almost a decade
• Price in Brazil increased dramatically

Price of Soybean Oil

30

Price Comparison of Major Oil Types

Low spread between Vegetable Oils and Energy support a big mandate. 31

Factors affecting palm oil industry in 2019 (cont.)

• Even EU agreed to phase out the use of palm oil in

transport fuels by 2030, the use of palm oil (not surpass 7%) would be capped at 2019 levels until 2023 and reduced to zero by 2030.

Palm oil to be phased out in EU by 2030

• India's palm oil imports are set to hit a six-year low

Hike in Import Duty of Palm •India's palm oil imports are set to hit a six-year low

following a hike in import taxes aimed at lifting local

• ilseed prices and supporting local farmers.

Hike in Import Duty of Palm Oil in India

• Mahathir says ringgit’s fair value at 3.8 , more than 7

percent stronger than its current level against the dollar at 4.1

Ringgit Currency

32

Exchange Rate During Different Global Events

During the fear of global trade tension, USD rallied against most crosses. After the US targeted more on China, USD

• stabilized. Turkish crisis dragging down EM Index

33

Source : EIC (SCB) analysis based on data from Bloomberg

Exchange Rate in The Region

34

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)
• Financial Overview (LST)
• Business Overview (UFC)
• Q&A

35

Performance Summary (Consolidated)

Reported 1H2018 net profit increased 894% YoY to THB 50.6 Million

37.0 349.1 105.1 409.5 Gross Profit Sales revenue

1H18 Financial Summary

+60 mTHB +68 mTHB

36

5.1 14.0 37.0 50.6 63.4 Net Income EBIT 1H18 1H17

+49 mTHB +45 mTHB

FFB Crop 2013 – 1H2018

61% 58% 60% 80% 100%

43% 65% 57% 61% 60% 80% 100%

37

39% 42% 0% 20% 40% 1H17 1H18 Own Estates Out-grower

35% 43% 39% 0% 20% 40% Y2015 Y2016 Y2017 Own Estates Out-grower

1H2018 Income Statement

(Million baht) 1H18 % to Sales 1H17 % to Sales Change Sales 409.53 100.0% 349.09 100.00% 17.31% Cost of sales (304.40)

• 74.3%

(312.12)

• 89.41%
• 2.48%

Gross profit 105.13 25.7% 36.97 10.59% 184.37% SG&A expense (37.00)

• 9.0%

(33.64)

• 9.64%

9.99%

Other income

8.41 2.1% 6.99 2.00% 20.36% Gain / (Loss) from change in fair value of biological assets 3.07 0.8% 9.05 2.59%

• 66.05%

Loss arising from impairment of assets (28.54)

• 7.0%

0.00% Share of profit (loss) from investment in joint venture 12.29 3.0% (5.40)

• 1.55%

127.75% Consolidated

38

Share of profit (loss) from investment in joint venture 12.29 3.0% (5.40)

• 1.55%

127.75% EBIT 63.37 15.5% 13.97 4.00% 353.66% Finance Cost (3.49)

• 0.9%

(4.06)

• 1.16%
• 14.00%

EBT 59.88 14.6% 9.91 2.84% 504.11% Tax (9.28)

• 2.3%

(4.83)

• 1.38%

92.25% Profit for the period 50.60 12.4% 5.09 1.46% 894.91% Earning per share 0.16 0.02

Statement of Financial Position as of 30 June 2018

(Million baht) 30-Jun-18 % to total assets 31-Dec-17 % to total assets Change Cash and cash equivalents 64.97 4.3% 111.73 7.4%

• 41.9%

Trade and other receivables 85.39 5.6% 51.09 3.4% 67.1% Inventories 146.86 9.7% 106.27 7.0% 38.2% Other current assets 87.95 5.8% 82.05 5.4% 7.2% Fixed assets 855.17 56.4% 878.76 57.8%

• 2.7%

Other non-current assets 274.93 18.1% 290.20 19.1%

• 5.3%

Total assets 1,515.26 100.0% 1,520.11 100.0%

• 0.3%

Consolidated 39 Total assets 1,515.26 100.0% 1,520.11 100.0%

• 0.3%

Bank overdrafts and short-term loans 370.00 24.4% 400.00 26.3%

• 7.5%

Trade and other payables 32.21 2.1% 27.43 1.8% 17.4% Other current liabilities 8.91 0.6% 6.27 0.4% 42.1% Other non-current liabilities 17.36 1.1% 17.82 1.2%

• 2.6%

Total liabilities 428.47 28.3% 451.52 29.7%

• 5.1%

Paid-up capital 324.05 21.4% 324.05 21.3% 0.0% Paid-in surplus 321.55 21.2% 321.55 21.2% 0.0% Retained earnings 441.19 29.1% 423.00 27.8% 4.3% Total liabilities and shareholders' equity 1,515.26 100.0% 1,520.11 100.0%

• 0.3%

Profitability Analysis (Consolidated)

Return on Asset (ROA)

14.7% 12.1% (0.8%) 4.7% (1.2%) 3.3% Y2013 Y2014 Y2015 Y2016 Y2017 1H18

Return on Equity (ROE) 40

Y2013 Y2014 Y2015 Y2016 Y2017 1H18 20.0% 16.8% (1.1%) 6.3% (1.7%) 4.7% Y2013 Y2014 Y2015 Y2016 Y2017 1H18

Financial Position Summary (As of 30 June 2018)

Total Asset (Million Baht)

Million Baht

268 383 273 307 351 385 938 919 976 921 879 855 295 258 332 319 290 275 1,501 1,560 1,582 1,547 1,520 1,515

• 500

1,000 1,500 2,000 Y2013 Y2014 Y2015 Y2016 Y2017 1H18 Current Asset PP&E Other Asset

Total Debt & D/E Ratio Interest Coverage Ratio (Times)

Million Baht

Times

41

232 42 9 24 7 29 Y2013 Y2014 Y2015 Y2016 Y2017 1H18 Current Asset PP&E Other Asset

399 431 520 397 452 428 0.36 0.38 0.49 0.35 0.42 0.39

• 0.20

0.40 0.60

• 200

400 600 800 Y2013 Y2014 Y2015 Y2016 Y2017 1H18 Debt (Mil.Baht) D/E Ratio (times)

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)
• Financial Overview (LST)
• Business Overview (UFC)
• Q&A

42

1H2018 Financial Summary

315 3,213 301 2,912 Gross Profit Sales revenue

LST

• 302 mTHB
• 14 mTHB

690 4,248 671 3,848 Gross Profit Sales revenue

Consolidated

• 400 mTHB
• 19 mTHB

43

141 159 193 213 Net Profit EBIT 1H18 1H17

+52 mTHB +53 mTHB

253 320 217 279 Net Profit EBIT 1H18 1H17

• 41 mTHB
• 36 mTHB

1H2018 Income Statement

(Million Baht) 1H18 % to Sales 1H17 % to Sales Change Sales 3,848.23 100.0% 4,248.43 100.00%

• 9.4%

Cost of sales (3,177.27)

• 82.6%

(3,558.48)

• 83.76%
• 10.7%

Gross profit 670.96 17.4% 689.95 16.24%

• 2.8%

SG&A expense (416.52)

• 10.8%

(418.69)

• 9.86%
• 0.5%

Other income 37.79 1.0% 44.72 1.05%

• 15.5%

Gain / (Loss) from change in fair value of biological assets 3.07 0.1% 9.05 0.21%

• 66.1%

Loss arising from impairment of assets (28.54)

• 0.7%

Share of loss from investment in joint venture 12.29 0.3% (5.40)

• 0.13%

327.8% Consolidated 44 Share of loss from investment in joint venture 12.29 0.3% (5.40)

• 0.13%

327.8% EBIT 279.06 7.3% 319.62 7.52%

• 12.7%

Finance Cost (13.36)

• 0.3%

(19.77)

• 0.47%
• 32.4%

EBT 265.70 6.9% 299.85 7.06%

• 11.4%

Tax (48.36)

• 1.3%

(46.57)

• 1.10%

3.8% Profit for the period 217.34 5.6% 253.29 5.96%

• 14.2%

Net income (Loss attribute to : Equity holder of the Company 205.29 5.3% 250.53 5.90%

• 18.1%

Non-Controlling interests of the subsidiaries 12.05 0.3% 2.76 0.07% 336.4% Earning per share 0.25 0.31

• 18.1%

Statement of Financial Position as of 30 June 2018

(Million Baht) 30-Jun-18 % to total assets 31-Dec-17 % to total assets Change Cash and cash equivalents 271.89 4.9% 414.14 6.9%

• 34.3%

Trade and other receivables 891.23 16.2% 1,105.30 18.3%

• 19.4%

Inventories 1,339.39 24.4% 1,452.46 24.0%

• 7.8%

Other current assets 115.85 2.1% 106.29 1.8% 9.0% Fixed assets 2,284.82 41.6% 2,350.50 38.9%

• 2.8%

Other non-current assets 594.53 10.8% 611.59 10.1%

• 4.1%

Total assets 5,497.71 100.0% 6,040.28 100.0%

• 9.0%

Consolidated 45 Total assets 5,497.71 100.0% 6,040.28 100.0%

• 9.0%

Bank overdrafts and short-term loans 650.00 11.8% 1,480.00 24.5%

• 56.1%

Trade and other payables 577.92 10.5% 495.37 8.2% 16.7% Current portion of long-term loans 182.05 3.3% 103.00 1.7% 76.8% Other current liabilities 82.39 1.5% 68.78 1.1% 19.8% Long-Term Borrowings 83.29 1.5% 30.51 0.5% 173.0% Other non-current liabilities 132.40 2.4% 132.72 2.2%

• 0.2%

Total liabilities 1,708.05 31.1% 2,310.38 38.2%

• 26.1%

Paid-up capital 820.00 14.9% 820.00 13.6% 0.0% Paid-in surplus 240.66 4.4% 240.66 4.0% 0.0% Retained earnings 2,391.08 43.5% 2,333.31 38.6% 2.5% Non-Controlling interests of the subsidiaries 337.92 6.1% 335.92 5.6% 0.6% Total shareholders' equity 5,497.71 100.0% 6,040.28 100.0%

• 9.0%

Profitability Analysis (Consolidated)

Return on Asset (ROA)

6.0% 8.5% 5.6% 6.0% 6.7% 3.6% Y2013 Y2014 Y2015 Y2016 Y2017 1H18

Return on Equity (ROE) 46

11.1% 14.8% 9.8% 10.6% 11.1% 5.5% Y2013 Y2014 Y2015 Y2016 Y2017 1H18

Financial Position Summary (As of 30 June 2018)

Total Asset (Million Baht)

586 591 620 655 612 595 2,181 2,085 2,425 2,413 2,351 2,285 2,396 2,448 2,826 2,880 3,078 2,618 5,163 5,124 5,871 5,948 6,040 5,498 Y2013 Y2014 Y2015 Y2016 Y2017 1H18 Other Asset PP&E Current Asset

Total Debt & D/E Ratio Interest Coverage Ratio (Times)

Million Baht Times

47

Other Asset PP&E Current Asset

2,311 2,030 2,648 2,455 2,310 1,708

0.81 0.66 0.82 0.78 0.68 0.45

• 0.20

0.40 0.60 0.80 1.00

• 1,000

2,000 3,000 4,000 Y2013 Y2014 Y2015 Y2016 Y2017 1H18 Debt (Mil.Baht) D/E Ratio (times) 13.9 16.2 14.5 17.0 18.9 29.7 Y2013 Y2014 Y2015 Y2016 Y2017 1H18

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)

48

• Financial Overview (LST)
• Business Overview (UFC)
• Q&A

Oman UAE Malaysia Singapore UK Germany Netherlands

America Asia Europe

China Japan South Korea Taiwan Hong Kong

Worldwide Customer Base

Singapore Brunei Philippines Australia New Zealand USA Canada

Australia Africa

49

Financial Summary (2015 -2017)

Sales Revenue

Million Baht

2,045 2,393 2,280 11.2% 17.0% (4.7%) (10.0%) 0.0% 10.0% 20.0% 1,000 2,000 3,000 Y2015 Y2016 Y2017 Sales Sales Growth

50

Net Profit Gross Profit

Million Baht Million Baht

Sales Sales Growth 568 647 587 27.8% 27.0% 25.8% 0.0% 10.0% 20.0% 30.0% 200 400 600 800 Y2015 Y2016 Y2017 Gross profit GP Margin

151 230 214 7.4% 9.5% 9.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 50 100 150 200 250 Y2015 Y2016 Y2017 Net profit Net profit margin

1H2018 Income Statement

(Million baht) 1H18 % to Sales 1H17 % to Sales Change Sales 1,065.76 100.0% 1,173.64 100.0%

• 9.2%

Cost of sales (786.71)

• 73.8%

(833.71)

• 71.0%
• 5.6%

Gross profit 279.05 26.2% 339.92 29.0%

• 17.9%

SG&A expense (173.36)

• 16.3%

(181.37)

• 15.5%
• 4.4%

Other income 17.65 1.7% 23.23 2.0%

• 24.0%

Consolidated

51

Other income 17.65 1.7% 23.23 2.0%

• 24.0%

EBIT 123.35 11.6% 181.78 15.5%

• 32.1%

Finance Cost (4.85)

• 0.5%

(7.38)

• 0.6%
• 34.2%

EBT 118.50 11.1% 174.40 14.9%

• 32.1%

Tax (24.10)

• 2.3%

(31.74)

• 2.7%
• 24.1%

Net income 94.39 8.9% 142.66 12.2%

• 33.8%

Statement of Financial Position as of 30 June 2018

(Million Baht) 2Q18 % to total assets 2017 % to total assets Change Cash and cash equivalents 64.77 4.1% 158.43 9.7%

• 59.1%

Trade and other receivables 263.37 16.6% 260.42 15.9% 1.1% Inventories 454.72 28.7% 424.49 25.9% 7.1% Other current assets 20.86 1.3% 15.17 0.9% 37.5% Fixed assets 714.71 45.0% 713.11 43.5% 0.2% Other non-current assets 68.52 4.3% 69.46 4.2%

• 1.4%

Total assets 1,586.95 100.0% 1,641.07 100.0%

• 3.3%

Bank overdrafts and short-term loans 180.00 11.3% 510.00 31.1%

• 64.7%

Consolidated 52 Bank overdrafts and short-term loans 180.00 11.3% 510.00 31.1%

• 64.7%

Trade and other payables 214.42 13.5% 157.63 9.6% 36.0% Current portion of long-term loans 125.04 7.9% 25.00 1.5% 400.2% Other current liabilities 51.92 3.3% 31.03 1.9% 67.3% Long-Term Borrowings 83.29 5.2% 12.50 0.8% 566.3% Other non-current liabilities 49.95 3.1% 53.97 3.3%

• 7.4%

Total liabilities 704.62 44.4% 790.13 48.1%

• 10.8%

Paid-up capital 525.00 33.1% 525.00 32.0% 0.0% Paid-in surplus 6.58

• 0.4%

6.58

• 0.4%

0.0% Retained earnings 202.48 12.8% 171.08 10.4% 18.3% Non-Controlling interests of the subsidiaries 161.43 10.2% 161.43 9.8% 0.0% Total shareholders' equity 1,586.95 100.0% 1,641.07 100.0%

• 3.3%

Financial Position Summary (As of 30 June 2017)

Total Asset (Million Baht)

90 70 94 69 69 620 643 679 713 715 732 1,076 889 858 804 1,443 1,789 1,661 1,641 1,587 Y2014 Y2015 Y2016 Y2017 1H18 Other Asset PP&E Current Asset

53

Total Debt & D/E Ratio ROA & ROE

Million Baht Times 9.6% 15.6% 17.8% 16.5% 7.6% 33.9% 37.1% 40.6% 28.5% 10.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Y2014 Y2015 Y2016 Y2017 1H18 ROA ROE 1,111 1,306 1,012 790 987 3.35 2.70 1.56 0.93 0.80

• 1.00

2.00 3.00 4.00

• 500

1,000 1,500 Y2014 Y2015 Y2016 Y2017 1H18 Debt (Mil.Baht) D/E Ratio (times)

Growth Drivers

Innovations

• Add value to our portfolio with innovations to delight

customers eg. 100% Watermelon Water, Almond Milk Drinks, Coconut Milk Drinks .

• Invest in research and innovations.

New Markets New Markets

• Strengthen leadership in key markets and expand to

new potential countries including Middle East and Russia New Channels

• Exploring new business channel eg. Online retailers

and digital marketing.

54

Q&A

Lam Soon (Thailand) Public Company Limited 64 Soi Bangna - Trad 25, Bangna Nuea, Bangna, Bangkok 10260

• Tel. +66 2361 8959/87
• Fax. (Management Dept.) +66 2361 8988/89

Thank You

For further information & enquiries, please contact us at: Anchalee Suebchantasiri Piyathida Sukchan Managing Director Executive Director Tel: +66-(0)2-361 8959/87 Tel: +66-(0)2-361 8959/87 Email: anchales@lamsoon.co.th Email: piyatida@lamsoon.co.th

• Fax. (Sales Dept.) +66 2361 8994/5

Email: secretary@lamsoon.co.th

55