Kaset Thai International Sugar Corporation PCL 22 February 2019 - - PowerPoint PPT Presentation

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Kaset Thai International Sugar Corporation PCL 22 February 2019 - - PowerPoint PPT Presentation

Kaset Thai International Sugar Corporation PCL 22 February 2019 Page 1 of 19 Important Notice This presentation is confidential. This presentation is not a prospectus. This presentation does not constitute or form part of any offer for sales or


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Kaset Thai International Sugar Corporation PCL

22 February 2019

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Important Notice

This presentation is confidential. This presentation is not a prospectus. This presentation does not constitute or form part of any offer for sales or solicitation of any offer to buy any securities nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. This presentation has been prepared for the purpose of providing certain individuals with business, financial and other information concerning Kaset Thai International Sugar Corporation Company Limited (“KTIS”) The information contained in this presentation is intended solely for your personal reference only. If you are not an intended recipient, you must not read, disclose, copy, circulate, retain, distribute or take any action in reliance upon this material. This presentation is not intended to substitute your own analysis and investigation, and should not be considered a recommendation to any recipient of this presentation. Some statements contained herein are forward-looking statements identified by the use of forward- looking terminology such as “may” , “will” , “expect” , “anticipate”, “intend” , “estimate” , “continue”, “plan” or other similar words, which are subject to various risks and uncertainties. These statements include statements with respect to KTIS’s corporate plans, strategies and beliefs and other statements that are not historical facts. This presentation is prepared based on the assumptions and beliefs of KTIS’s management in light of the information currently available to KTIS involving risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this presentation is, or shall be relied on as promise or representation of KTIS as to the future.

For more information, contact : IR@ktisgroup.com

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Agenda

  • Q1-2019 Operating Results
  • Sugar & Bio Industrial Trends
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Q1-2019 Operating Results

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Summary of Operating Results - 1

Total Revenues Total Expenses Net Profit

Unit: Baht million

Net Profit

  • Total revenues increased due to higher revenues from both sugar

business and bio business

  • Total expenses increased due to higher cost of sales & services which in

line with higher sales & services revenues

  • Net loss was less than last year

2,00 005 2,269 770 630 69 69 65 65

2,843 43 2,934 34

Q1 Q1-20

  • 2018

Q1 Q1-20

  • 2019

Financial Costs Selling & Admin. Expenses Cost of Sales & Services Income tax expenses

2,219 219 2,616 616 110 110 183 183 20 20 2,350 350 2,799 799

1,000 2,000 3,000

Q1-2018 1-2018 Q1-2019 1-2019

  • 495

495

  • 196

196

  • 500

Q1 Q1-20

  • 2018

Q1 Q1-20

  • 2019

Other Income Sales & Services Revenues Income Tax Benefits (Oct.-Dec.2017) (Oct.-Dec.2018) (Oct.-Dec.2017) (Oct.-Dec.2018) (Oct.-Dec.2017) (Oct.-Dec.2018)

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Sales & Service Revenues Gross Profit & Margin

Summary of Operating Results - 2

Unit: Baht million

GP - Sugar GP - Bio GPM - Sugar GPM - Bio

152 152 146 146 62 62 201 201 214 214 347 347

11.2 .2% 8.7% 7.2% 21.6 .6%

0% 10% 20% 30% 40% 200 400

Q1-2018 1-2018 Q1-2019 1-2019

61.1% 16.7% 17.7% 2.4% 2.1%

Sugar Paper Pulp Ethanol Electricity Others

Q1-2018

64.3% 15.1% 13.8% 3.1% 3.7%

Sugar Paper Pulp Ethanol Electricity Others

Q1-2019

(Oct.-Dec.2017) (Oct.-Dec.2018)

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Sugar Revenue

Sugar Revenue

Sugar Sales Volume (‘000 Ton) & Price (Baht)

53 53 47 47 15 15 79 79 69 69 127 127

19,5 ,507 17,5 ,565 17,3 ,383 10,1 ,147

8,000 13,000 18,000 100 200

Q1-2018 1-2018 Q1-2019 1-2019

Sugar - Domestic Sugar - International Domestic Sales Volume Domestic Selling Price * International Sales Volume International Selling Price Molasses

12 12 37 37 4,105 105 3,092 092

2,000 3,000 4,000 10 20 30 40

Q1-2018 1-2018 Q1-2019 1-2019

Molasses Sales Volume (‘000 Ton) & Price (Baht)

Molasses Sales Volume Molasses Selling Price

Note: * white & refined sugar selling price only Source: Office of the Cane and Sugar Board, 19 February 2019

Production 2017/18 2018/19 Thailand Cane 134.9 86.1 MMT Sugar 147.1 91.4 MBg Molasses 5.5 3.4 MMT KTIS Cane 11.6 6.5 MMT Sugar 11.9 6.4 MBg Molasses 0.5 0.3 MMT

1,040 040 764 764 265 265 804 804 51 51 116 116 1,356 356 1,684 684

1,000 2,000

Q1-2018 1-2018 Q1-2019 1-2019

Unit: Baht million

(Oct.-Dec.2017) (Oct.-Dec.2018)

(Oct.-Dec.2017) (Oct.-Dec.2018) (Oct.-Dec.2017) (Oct.-Dec.2018)

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Pulp Revenue

61 61 74 74 310 310 320 320 371 371 394 394

200 400

Q1 Q1-20

  • 2018

Q1 Q1-20

  • 2019

Unit: Baht million

Pulp Revenue

2,858 858 3,115 115 14,560 560 13,249 249 17,418 418 16,364 364

21,3 ,332 23,6 ,644 21,2 ,274 24,1 ,170

20,000 22,000 24,000 10,000

Q1 Q1-20

  • 2018

Q1 Q1-20

  • 2019

Sales Volume (ton) & Selling Price (Baht)

  • Pulp revenue increased as a result of higher average bagasse pulp

selling price even though lower pulp sales volume

Pulp - Domestic Pulp - International Domestic Sales Volume Domestic Selling Price International Sales Volume International Selling Price

(Oct.-Dec.2017) (Oct.-Dec.2018) (Oct.-Dec.2017) (Oct.-Dec.2018)

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Ethanol Revenue

393 393 362 362

200 400

Q1 Q1-20

  • 2018

Q1 Q1-20

  • 2019

15,301 301 15,650 650

25.6 .67 23.1 .10

15 20 25 30 10,000 20,000

Q1 Q1-20

  • 2018

Q1 Q1-20

  • 2019

Unit: Baht million

Ethanol Revenue Sales Volume (‘000 Liter) & Selling Price (Baht)

  • Ethanol revenue decreased due to lower average selling price

Ethanol - Domestic Ethanol - International Domestic Sales Volume Domestic Selling Price International Sales Volume International Selling Price

(Oct.-Dec.2017) (Oct.-Dec.2018) (Oct.-Dec.2017) (Oct.-Dec.2018)

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Electricity Revenue

53 53 81 81

100

Q1-2018 1-2018 Q1-2019 1-2019

Unit: Baht million

Electricity Revenue

17,318 18 26,980 80

3.05 3.01 01

2.70 2.80 2.90 3.00 3.10 50,000

Q1-2018 1-2018 Q1-2019 1-2019

Electricity Supplied (MWH) & Selling Price (Baht)

Electricity Supplied Selling Price

  • Revenue from electricity business increased, as a result of higher

electricity sold, despite lower average electricity selling price per unit

Electricity Revenue

(Oct.-Dec.2017) (Oct.-Dec.2018) (Oct.-Dec.2017) (Oct.-Dec.2018)

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Sugar & Bio Industry Trends

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Positive Factors for Sugar

  • The global balance will switch from surplus at around 9.8

million tons for 2017/18 season to balance in 2018/19 season, with chance to get to deficit almost 6.0 million tons in 2019/20 season, largely due to global consumption growth and a large fall in Indian production from 31.5 million tons in 2018/2019 to 26.5 million tons in 2019/2020

  • WTI crude oil has gained around 20%, recovering from a low
  • f USD 43/bbl reached at the end of Dec to USD 55/bbl.

currently

  • The Brazilian real has strengthened 6%, recovering from

BRL 3.94/USD reached at the early of Dec to BRL 3.7/USD.

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Negative Factors for Sugar

  • Another big crop be expected in India, which will still reach

30.5 - 31.5 million tons in 2018/19, although ISMA reduced their estimate. And India is expected to export 5 million tons in 2018/19.

  • Ethanol parity is around 13c/lb and will be below 13c/lb in

the middle of the year.

  • Sweetener tax in Thailand is stagnating industrial sugar

consumption in domestic market.

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World Sugar Price – 10 Years

Source: Reuters

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World Sugar Price – 5 Years

Source: Reuters

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Source: LMC

Production Surplus/Deficit

World Sugar Supply / Demand Balance

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Brazilian Real / USD vs. ICE No.11

Source: Reuters Sugar Price (cent/lb) Exchange rate(R$/US$)

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Eucalyptus Pulp & Bagasse Pulp Price Comparison (2013 – 2018)

450 550 650 750 850

Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19

Euc Eucal alyptus ptus ( (CIF CIF) Baga Bagasse ( e (CF CFR) R)

Source: RISI + Company

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Ethanol Consumption (MLPD) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

3.85 85 4.04 04 3.96 96 4.11 11 3.87 87 4.15 15 4.04 04 4.12 12 3.98 98 4.09 09 4.18 18 4.43 43 3.61 1 3.67 7 3.73 3 3.85 5 3.77 7 3.91 1 3.83 3 3.85 5 3.84 4 3.83 3 3.73 3 4.03 3 3.35 5 3.48 8 3.44 4 3.65 5 3.50 3.46 6 3.57 7 3.73 3 3.54 4 3.48 8 3.62 2 3.81 1 3.12 2 3.16 6 3.15 5 3.30 3.17 7 3.19 9 3.28 8 3.23 3 3.17 7 3.27 7 3.31 1 3.55 5

2.5 3.5 4.5

Ja Jan Fe Feb Mar Apr May Ju Jun Ju Jul Aug Sep Oct Oct Nov Nov Dec Dec Million Liter Per Day (MLPD)

2015 2016 2017

Ethanol Consumption Development

2015 2016 2017 2018 3.12 3.35 3.61 3.85 3.16 3.48 3.67 4.04 3.15 3.44 3.73 3.96 3.30 3.65 3.85 4.11 3.17 3.50 3.77 3.87 3.28 3.57 3.83 4.04 3.23 3.73 3.85 4.12 3.17 3.54 3.84 3.98 3.27 3.48 3.83 4.09 3.31 3.62 3.73 4.18 3.55 3.81 4.03 4.43 3.19 3.46 3.91 4.15

2018

Note: * Ethanol consumption is calculated from minimum blending ratio

Dec.’18 *EtOH cons. = 4.43 MLPD