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Agenda
- Q1-2017 Operating Results
- Projects in Progress
- Sugar & Bio Industrial Trends
Kaset Thai International Sugar Corporation PCL 1 June 2017 Page 1 - - PowerPoint PPT Presentation
Kaset Thai International Sugar Corporation PCL 1 June 2017 Page 1 - - PowerPoint PPT Presentation
Kaset Thai International Sugar Corporation PCL 1 June 2017 Page 1 of 21 Agenda Q1-2017 Operating Results Projects in Progress Sugar & Bio Industrial Trends Page 2 of 21 Q1-2017 Operating Results Page 3 of 21 Summary of
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Q1-2017 Operating Results
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Summary of Operating Results - 1
Total Revenues Total Expenses Net Profit
Unit: Baht million
Net Profit
- Total revenues decreased due to lower revenues from sugar business
- Total expenses were much lower than last year
- Net profit was much higher than last year
3,227 2,69 696 881 780 80 80 76 76 144
4,333 33 3,552 52
Q1 Q1-20 2016 Q1 Q1-20 2017
Financial Costs Selling & Admin. Expenses Cost of Sales & Services Losses on Forex & Tax Expense
4,340 340 3,834 834 43 43 110 110 20 20 4,382 382 3,964 964
2,500 5,000
Q1-2016 1-2016 Q1-2017 1-2017
Other Income Sales & Services Revenues Income Tax Benefits
50 50 412 412
500 1,000
Q1 Q1-20
- 2016
Q1 Q1-20
- 2017
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75.1% 4.9% 8.6% 5.7% 5.7%
Sugar Paper Pulp Ethanol Electricity Others
Q1-2016 Sales & Service Revenues Gross Profit & Margin
Summary of Operating Results - 2
- Gross Profit increased due to
better cane quality and better sugar production efficiency
Unit: Baht million
GP - Sugar GP - Bio GPM - Sugar GPM - Bio
593 593 630 630 520 520 507 507 1,112 112 1,138 138
18.2 .2% 24.1 .1% 48.1 .1% 41.6 .6%
10% 20% 30% 40% 50% 60% 1,000
Q1-2016 1-2016 Q1-2017 1-2017
- Portion of revenue from Sugar business decreased
68.2% 6.6% 11.4% 6.4% 7.3%
Sugar Paper Pulp Ethanol Electricity Others
Q1-2017
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Sugar Revenue
Sugar Revenue
Sugar Sales Volume (‘000 Ton) & Price (Baht)
61 61 60 60 166 166 79 79 227 227 139 139
19,6 ,635 19,7 ,735 11,2 ,205 16,1 ,104
9,000 14,000 19,000 100 200
Q1-2016 1-2016 Q1-2017 1-2017
Sugar - Domestic Sugar - International Domestic Sales Volume Domestic Selling Price * International Sales Volume International Selling Price Molasses
53 53 50 50 3,811 811 4,624 624
2,000 3,000 4,000 5,000 50 100 150
Q1-2016 1-2016 Q1-2017 1-2017
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, 4 may 2017
Production 2015/16 2016/17 Thailand Cane 94.0 93.0 MMT Sugar 97.8 100.3 MBg Molasses 4.3 3.9 MMT KTIS Cane 7.5 8.7 MMT Sugar 7.2 9.4 MBg Molasses 0.4 0.4 MMT
1,180 180 1,111 111 1,859 859 1,272 272 203 203 232 232 17 3,259 259 2,615 615
1,000 2,000 3,000
Q1-20 1-2016 16 Q1-20 1-2017 17
Unit: Baht million
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Pulp Revenue
56 56 60 60 156 156 193 193 212 212 254 254
200 400
Q1 Q1-20
- 2016
Q1 Q1-20
- 2017
Unit: Baht million
Pulp Revenue
2,571 571 2,987 987 6,303 303 10,052 052 8,874 874 13,038 038
21,6 ,631 20,2 ,233 24,7 ,790 19,2 ,246
16,000 18,000 20,000 22,000 24,000 10,000 20,000
Q1 Q1-20
- 2016
Q1 Q1-20
- 2017
Sales Volume (ton) & Selling Price (Baht)
- Pulp revenue increased due to both domestic and international pulp
sales volume increased
- Domestic and international selling prices were lower 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
374 374 439 439
200 400
Q1 Q1-20
- 2016
Q1 Q1-20
- 2017
16,355 355 17,990 990
22.8 .89 24.3 .38
15 20 25 30 10,000 20,000
Q1 Q1-20
- 2016
Q1 Q1-20
- 2017
Unit: Baht million
Ethanol Revenue Sales Volume (‘000 Liter) & Selling Price (Baht)
- Ethanol revenue increased due to sales volume increased and
domestic selling price also increased
Ethanol - Domestic Ethanol - International Domestic Sales Volume Domestic Selling Price International Sales Volume International Selling Price
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Electricity Revenue
246 246 246 246
200 400
Q1-2016 1-2016 Q1-20 1-2017 17
Unit: Baht million
Electricity Revenue
76,833 33 83,612 12
3.21 2.94
2.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 3.30 50,000 100,000
Q1-2016 1-2016 Q1-2017 1-2017
Electricity Supplied (MWH) & Selling Price (Baht)
Electricity Supplied Selling Price
- Electricity Revenue maintained at the same level as the previous year
- Per unit selling price decreased due to lower FT
Electricity Revenue
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Dividend Payment
- AGM 2017 held on 24 April 2017 approved:
Legal Reserve of Baht 11,249,693 the dividend payment of Baht 386,000,001 = Baht 0.10 per share Record Date is scheduled on 4 May 2017 [Closing the share register book is scheduled on 5 May 2017] [Ex-Dividend is scheduled on 2 May 2017] Dividend payment date is scheduled on 16 May 2017
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Projects in Progress
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Projects in Progress
- Biomass power plant (50MW)
RPBP started commercial operation since 23 March 2017
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Sugar & Bio Industry Trends
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Positive Factors for Sugar
- Due to the consecutive two years supply deficit, the sugar stock
level is historically low.
- India announced to allocate duty-free import quota of 0.5 mil
- tons. And based on their supply/demand balance, more imports
will be required before the end of the crop.
- Brazilian government is considering to reinstate the tariff on
import of ethanol to 16-20% which was stopped since April 2010. It might promote to increase ethanol production ratio
- AFTA give better access and competitiveness to ASEAN countries,
where is steady consumption growth and continue to be in deficit.
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Negative Factors for Sugar
- World Supply / Demand balance prospect for 2017/18 season is
expected to return to surplus at around 2.0-4.0 million tons.
- Funds reduced their long position and finally turned to net short.
It seems difficult to support by funds again in short term.
- Deregulation in EU sugar industry will encourage refined sugar
exports from late 2017.
- Lower oil prices push Brazilian gasoline down further, and it
might promote to produce sugar than ethanol.
- Thailand attempts to modify the current quota system to avoid
being challenged by Brazil at the WTO. It has a potential to change the market environment.
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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
2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 7.50 10.00 12.50 15.00 17.50 20.00 22.50 25.00 6/1/2015 10/1/2015 2/1/2016 6/1/2016 10/1/2016 2/1/2017 6/1/2017
R$/US$ Exchange Rate vs. ICE No.11
ICE No.11 BRL
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Eucalyptus Pulp & Bagasse Pulp Price Comparison (2013 – 2017)
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
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
3.61 61 3.67 67 3.73 73 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 2.56 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
2.0 3.0 4.0
Ja Jan Fe Feb Mar Apr May Ju Jun Ju Jul Aug Sep Oct Oct Nov Nov Dec Dec Million Liter Per Day (MLPD)
2014 2015 2016
Ethanol Consumption Development
2014 2015 2016 2017 2.56 3.12 3.35 3.61 2.65 3.16 3.48 3.67 2.75 3.15 3.44 3.73 2.89 3.30 3.65 2.85 3.17 3.50 2.98 3.28 3.57 3.09 3.23 3.73 3.05 3.17 3.54 3.11 3.27 3.48 3.19 3.31 3.62 3.42 3.55 3.81 2.84 3.19 3.46
2017
Note: * Ethanol consumption is calculated from minimum blending ratio
March’17 *EtOH cons. = 3.73 MLPD
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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.