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Agenda
- H1-2016 Operating Results
- Projects in Progress
- Sugar & Bio Industrial Trends
Kaset Thai International Sugar Corporation PCL 22 August 2016 Page - - PowerPoint PPT Presentation
Kaset Thai International Sugar Corporation PCL 22 August 2016 Page - - PowerPoint PPT Presentation
Kaset Thai International Sugar Corporation PCL 22 August 2016 Page 1 of 26 Agenda H1-2016 Operating Results Projects in Progress Sugar & Bio Industrial Trends Page 2 of 26 H1-2016 Operating Results Page 3 of 26 Summary of
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H1-2016 Operating Results
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Summary of Operating Results - 1
Financial Costs
Total Revenues Total Expenses Net Profit
- Total revenues decreased due to lower revenue from sugar
- Total expenses were lower than last year
- Net profit was lower than last year
Unit: Baht million Unit: Baht million Unit: Baht million
9,211 211 8,637 637
61 61 61 61
9,272 272 8,697 697
4,000 8,000
H1-2 H1-2015 H1-2 H1-2016
Other Income Sales & Services Revenues Net Profit
6,739 739 6,553 553
1,674 1,607 198 198 174 174
8,611 611 8,335 335
4,000 8,000
H1-2 H1-2015 H1-2 H1-2016
Selling & Admin. Expenses Cost of Sales & Services
664 664 143 143
500 1,000
H1-2 H1-2015 H1-2 H1-2016
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76.9% 4.5% 9.9% 5.0% 3.7%
Sugar Paper Pulp Ethanol Electricity Others
Sales & Service Revenues Gross Profit & Margin
Summary of Operating Results - 2
Unit: Baht million
GP - Sugar GP - Bio GPM - Sugar GPM - Bio
1,163 163 1,286 286 1,309 309 797 797 2,472 472 2,083 083
17.1 .1% 19.4 .4% 54.1 .1% 39.9 .9%
10% 20% 30% 40% 50% 60% 1,000 2,000
H1-2015 1-2015 H1-20 H1-2016 16
73.7% 8.6% 9.1% 4.5% 4.0%
Sugar Paper Pulp Ethanol Electricity Others
H1-2015 H1-2016
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Sugar Revenue
Sugar Revenue
Sugar Sales Volume (‘000 Ton) & Price (Baht)
148 148 155 155 300 300 299 299 448 448 454 454
19,7 ,767 19,6 ,659 12 12,0 ,072 11,9 ,984
9,000 14,000 19,000 200 400
H1-2015 1-2015 H1-2016 1-2016
Sugar - Domestic Sugar - International Domestic Sales Volume Domestic Selling Price * International Sales Volume International Selling Price Molasses
91 91 89 89 4,237 237 4,031 031
2,000 3,000 4,000 5,000 50 100 150
H1-2015 1-2015 H1-2016 1-2016
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
Production 2014/15 2015/16 Thailand Cane 106.0 94.0 MMT Sugar 113.0 97.8 MBg Molasses 4.6 4.3 MMT KTIS Cane 9.8 7.5 MMT Sugar 9.9 7.2 MBg Molasses 0.5 0.4 MMT
2,634 634 2,680 680 3,626 626 3,584 584 388 388 358 358 144 17 6,792 792 6,640 640
3,000 6,000
H1-20 1-2015 15 H1-20 1-2016 16
Unit: Baht million
Compensation from Cane and Sugar Fund
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Pulp Revenue
186 186 107 107 606 606 285 285 792 792 391 391
400 800
H1-2 H1-2015 H1 H1-20
- 2016
Unit: Baht million
Pulp Revenue
9,512 512 4,937 937 27,201 201 11,663 663 16,600 600
19,5 ,555 21,5 ,575 22,2 ,287 24,4 ,408
16,000 18,000 20,000 22,000 24,000 10,000 20,000 30,000
H1-2 H1-2015 H1-2 H1-2016
Sales Volume (ton) & Selling Price (Baht)
- Pulp revenue decreased due to sales volume decreased
- Domestic and international selling prices were better 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
842 842 854 854
400 800
H1 H1-20
- 2015
H1-2 H1-2016
33,379 379 38,488 488
25.2 .22 22.1 .18
15 20 25 30 20,000 40,000
H1-2 H1-2015 H1-2 H1-2016
Unit: Baht million
Ethanol Revenue Sales Volume (‘000 Liter) & Selling Price (Baht)
- Ethanol revenue increased due to sales volume increased
Ethanol - Domestic Ethanol - International Domestic Sales Volume Domestic Selling Price International Sales Volume International Selling Price
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Electricity Revenue
416 416 435 435
200 400
H1-20 1-2015 15 H1-20 1-2016 16
Unit: Baht million
Electricity Revenue
123,07 075 140,22 220
3.38 3.10
2.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.40 3.50 50,000 100,000 150,000
H1-2015 1-2015 H1-20 H1-2016 16
Electricity Supplied (MWH) & Selling Price (Baht)
Electricity Supplied Selling Price
- Electricity Revenue increased in line with higher supplied volume,
specifically from KTBP and TEP
Electricity Revenue
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Projects in Progress
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Projects in Progress
- Liquid sucrose (400 MT/day) &
Super refined sugar (500 MT/day)
- Two Biomass power plants (2 x 50MW)
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Sugar & Bio Industry Trends
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Positive Factors for Sugar Price
- World Supply / Demand for 2015/16 and 2016/17 are expected to
be deficit.
- Most of the sugar producing countries in northern hemisphere
has been largely effected by the severe droughts and damage accumulated in 2016 crop.
- With steady consumption growth, ASEAN region continue to be in
deficit, which leads to competitive advantages of Thai sugar.
- Thai regulation of the profit sharing system allows the
sustainable earning for both farmers and millers, where those in
- ther countries suffer from the low world sugar price.
- AFTA give better access and competitiveness to ASEAN countries.
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Negative Factors for Sugar Price
- Many talks and discussions of FTA in many countries can change
market environment drastically.
- Import policies of Indonesia and China have been uncertain and
much slower than previous years, leading to less import.
- Wet weather in 2015 and dryness in 2016 has improved
productivities and cane quality in Brazil.
- Low oil price has been pressuring ethanol demand and price,
which would make sugar mill to make more sugar than ethanol.
- Deregulation in EU sugar industry will encourage refined sugar
exports from late 2016.
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World Sugar Price
Source: Reuters
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Source: LMC
Production Surplus/Deficit
World Sugar Supply / Demand Balance
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Brazilian Real / USD v.s. ICE No.11
Source: Reuters
2.0000 2.3000 2.6000 2.9000 3.2000 3.5000 3.8000 4.1000 10.00 11.50 13.00 14.50 16.00 17.50 19.00 20.50 8/4/2014 2/4/2015 8/4/2015 2/4/2016 8/4/2016
R$/US$ Exchange Rate vs. ICE No.11
ICE No.11 R$/US$
Sugar price ( cent/lb ) Exchange Rate ( R$/US$ )
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Eucalyptus Pulp & Bagasse Pulp Price Comparison (2013 – 2016)
450 550 650 750 850
Euc Eucal alyptus ptus ( (CIF CIF) Baga Bagasse ( e (CF CFR) R)
Source: RISI
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Ethanol Consumption (MLPD) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
3.35 35 3.48 48 3.44 44 3.65 65 3.50 3.46 46 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 2.56 6 2.65 5 2.75 5 2.89 9 2.85 5 2.84 4 2.98 3.09 9 3.05 5 3.11 1 3.19 9 3.42 2 1.95 5 2.11 1 2.25 5 2.34 4 2.33 3 2.35 5 2.40 2.50 2.36 6 2.46 6 2.57 7 2.62 2
1.5 2.5 3.5
Ja Jan Fe Feb Mar Apr May Ju Jun Ju Jul Aug Sep Oct Oct Nov Nov Dec Dec Million Liter Per Day (MLPD)
2013 2014 2015
Ethanol Consumption Development
2013 2014 2015 2016 1.95 2.56 3.12 3.35 2.11 2.65 3.16 3.48 2.25 2.75 3.15 3.44 2.34 2.89 3.30 3.65 2.33 2.85 3.17 3.50 2.40 2.98 3.28 2.50 3.09 3.23 2.36 3.05 3.17 2.46 3.11 3.27 2.57 3.19 3.31 2.62 3.42 3.55 2.35 2.84 3.19 3.46
2016
Note: * Ethanol consumption is calculated from minimum blending ratio
June’16 *EtOH cons. = 3.46 MLPD
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KTIS R&D #1
KTIS has signed MOU to enhance research and development capabilities in cane and sugar business with 4 leading universities
- Kasetsart University
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- King Mongkut's University of Technology Thonburi
KTIS R&D #2
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- Chiang Mai University
KTIS R&D #3
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- Naresuan University
KTIS R&D #4
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KTIS ขับเคลื่อนโครงการประชารัฐ “ขุดเจาะบ่อบาดาล”
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MOU โครงการประชารัฐ “เปลี่ยนนาข้าวเป็นไร่อ้อย”
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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.