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Kaset Thai International Sugar Corporation PCL 27 August 2018 Page 1 - - PowerPoint PPT Presentation
Kaset Thai International Sugar Corporation PCL 27 August 2018 Page 1 - - PowerPoint PPT Presentation
Kaset Thai International Sugar Corporation PCL 27 August 2018 Page 1 of 20 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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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
- 1H-2018 Operating Results
- Sugar & Bio Industrial Trends
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1H-2018 Operating Results
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Summary of Operating Results - 1
Total Revenues Total Expenses Net Profit (Loss)
Unit: Baht million
Net Profit
- Total revenues increased slightly, due to revenues from bio-business increased
- Total expenses increased, due to cost of sales & services and SG&A increased
- Gained net profit in 1H-2017, but net loss in 1H-2018
Financial Costs Selling & Admin. Expenses Cost of Sales & Services
11 11,354 354 11 11,682 682 336 336 185 185 46 46 2 11 11,736 736 11 11,869 869
5,000 10,000
1H-2017 2017 H1-2018 2018
Other Income Sales & Services Revenues Income Tax Benefits
9,067 067 9,959 959 1,512 512 1,864 864 184 184 182 182 10 10,762 762 12 12,005 005
5,000 10,000
1H-2017 2017 1H-2018 2018
973 973
- 136
136
- 300
1H-2017 1H-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
1,411 411 532 532 877 877 1,191 191 2,288 288 1,723 723
15 15.7% 6.1% 37 37.0% 41 41.3%
0% 10% 20% 30% 40% 50% 1,000 2,000
1H-2017 2017 1H-2018 2018
79.1% 5.3% 7.7% 4.2% 3.7%
Sugar Paper Pulp Ethanol Electricity Others
1H-2017
75.3% 6.5% 6.6% 7.1% 4.5%
Sugar Paper Pulp Ethanol Electricity Others
1H-2018
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Sugar Revenue
Sugar Revenue
Sugar Sales Volume (‘000 Ton) & Price (Baht)
143 143 130 130 386 386 598 598 454 454 729 729
19 19,708 17 17,788 15 15,630 10 10,514
9,000 14,000 19,000 200 400 600 800
1H-2017 2017 1H-2018 2018
Sugar - Domestic Sugar - International Domestic Sales Volume Domestic Selling Price * International Sales Volume International Selling Price Molasses
80 80 108 108 4,801 801 3,757 757
2,000 3,000 4,000 5,000 50 100 150
1H-2017 2017 1H-2018 2018
Molasses Sales Volume (‘000 Ton) & Price (Baht)
Molasses Sales Volume Molasses Selling Price
Note: * white & refined sugar selling price only
2,567 567 2,099 099 6,031 031 6,291 291 385 385 407 407 8,983 983 8,797 797
3,000 6,000 9,000
1H-2017 2017 H1-2018 2018
Unit: Baht million
Source: Office of the Cane and Sugar Board, 31 may 2018
Production 2016/17 2017/18 Thailand Cane 93.0 134.9 MMT Sugar 100.3 146.7 MBg Molasses 3.9 5.5 MMT KTIS Cane 8.7 11.6 MMT Sugar 9.4 11.8 MBg Molasses 0.4 0.5 MMT
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Pulp Revenue
108 108 144 144 493 493 617 617 601 601 761 761
400 800
1H-2017 1H-2018
Unit: Baht million
Pulp Revenue
5,353 353 6,494 494 25 25,651 651 27 27,639 639 31 31,004 004 34 34,132 132
20 20,14 142 22 22,143 19 19,218 22 22,321
16,000 18,000 20,000 22,000 24,000 10,000 20,000 30,000
1H-2017 1H-2018
Sales Volume (ton) & Selling Price (Baht)
- Pulp revenue increased due to both sales volume and selling price increased
- Both domestic and international selling prices were higher than last year
Pulp - Domestic Pulp - International Domestic Sales Volume Domestic Selling Price International Sales Volume International Selling Price
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Ethanol Revenue
872 872 776 776
400 800
1H-2017 1H-2018
34 34,944 944 32 32,950 950
24 24.94 94 23 23.55 55
15 20 25 30 20,000 40,000
1H-2017 1H-2018
Unit: Baht million
Ethanol Revenue Sales Volume (‘000 Liter) & Selling Price (Baht)
- Ethanol revenue decreased, as a result of decreases in both ethanol
sales volume and average selling price
Ethanol - Domestic Ethanol - International Domestic Sales Volume Domestic Selling Price International Sales Volume International Selling Price
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Electricity Revenue
475 475 824 824
300 600 900
1H-2017 2017 1H-2018 2018
Unit: Baht million
Electricity Revenue
162 162,18 185 271 271,16 166
2.93 93 3.04 04
2.50 2.60 2.70 2.80 2.90 3.00 3.10 100,000 200,000 300,000
1H-2017 2017 1H-2018 2018
Electricity Supplied (MWH) & Selling Price (Baht)
Electricity Supplied Selling Price
- Electricity Revenue increased, as all 3 biomass power plants
commercially operated
- Both sales volume and per unit sales price of electricity increased
Electricity Revenue
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Sugar & Bio Industry Trends
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Positive Factors for Sugar
- Due to dry weather and focusing more heavily on ethanol
production, Centre South Brazil sugar production in 2017/18 could drop below 28 million tons against 36 million tons in the previous crop.
- Dry weather in Europe might reduce EU and Russia /
Ukraine export availability.
- Funds have rebuilt their net short position to 149,658 as of
14th Aug ,which is approaching the record net short position
- f 183,000 on 30th Jan. Then it’s not much room for funds to
accumulate net short position.
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Negative Factors for Sugar
- World Supply / Demand balance for 2017/18 season is
expected to be surplus at around 9.7 million tons, and 5.5- 6.0 million tons surplus for 2018/19 season.
- Another big crop be expected in India, which will be reach
33 million tons (32.2 million tons in previous). Then more Indian export subsidies might be announced.
- Sweetener tax in Thailand is stagnating industrial sugar
consumption in domestic market.
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World Sugar Price – 10 Years
Source: Reuters
週足 ICE SUG11 OCT8
2008/08/01 - 2018/12/21 (NYC) Cndl, ICE SUG11 OCT8, Trade Price 2018/08/17, 10.55, 10.55, 10.11, 10.18 3MA, ICE SUG11 OCT8, Trade Price(Last), 14, 21, 35, 単純 2018/08/17, 11.49, 11.58, 12.42
価格
USc Lbs
自動
12 14 16 18 20 22 24 26 28 30 32 2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年 2017年 2018年 2000年 2010年
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World Sugar Price – 5 Years
Source: Reuters
日足 ICE SUG11 OCT8
2015/08/03 - 2018/09/13 (NYC) Cndl, ICE SUG11 OCT8, Trade Price 2018/08/17, 10.30, 10.36, 10.11, 10.18 3MA, ICE SUG11 OCT8, Trade Price(Last), 14, 21, 35, 単純 2018/08/17, 10.56, 10.72, 10.96
価格
USc Lbs
自動
11 12 13 14 15 16 17 18 19 20 21 22 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 15 Q3 15 Q4 16 Q1 16 Q2 16 Q3 16 Q4 17 Q1 17 Q2 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3
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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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BRL and THB / USD (2013-2018)
Source: Investing.com 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 20 25 30 35 40 01-Jan-13 01-Jan-14 01-Jan-15 01-Jan-16 01-Jan-17 01-Jan-18 USD_THB USD_BRL
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Eucalyptus Pulp & Bagasse Pulp Price Comparison (2013 – 2018)
450 550 650 750 850
Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18
Eucal alyptus ptus (CIF) Bagas asse e (CFR)
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 3.61 61 3.67 67 3.73 73 3.85 85 3.77 77 3.91 91 3.83 83 3.85 85 3.84 84 3.83 83 3.73 73 4.03 03 3.35 35 3.48 48 3.44 44 3.65 65 3.50 50 3.46 46 3.57 57 3.73 73 3.54 54 3.48 48 3.62 62 3.81 81 3.12 12 3.16 16 3.15 15 3.30 30 3.17 17 3.19 19 3.28 28 3.23 23 3.17 17 3.27 27 3.31 31 3.55 55
2.2 3.2 4.2
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 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 3.23 3.73 3.85 3.17 3.54 3.84 3.27 3.48 3.83 3.31 3.62 3.73 3.55 3.81 4.03 3.19 3.46 3.91 4.15
2018
Note: * Ethanol consumption is calculated from minimum blending ratio
June’18 *EtOH cons. = 4.15 MLPD