[PPT] - OPPORTUNITY DAY WEDNESDAY, JUNE 10, 2015 OPPORTUNITY DAY PowerPoint Presentation

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OPPORTUNITY DAY WEDNESDAY, JUNE 10, 2015

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OPPORTUNITY DAY WEDNESDAY, JUNE 10, 2015

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Agenda

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I. BRR in Brief
II. Operating Results – Q1 - 2015
III. Sugar Situation
IV. Investment Update
V. Q&A

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Company Structure

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By-product business

Sugar Mill

BSF

Establish in

1960, produce and sale raw and brown sugar both domestic and international with capacity 17,000 tons/day

Its electricity

capacity is 10 MW Main business

Buriram Sugar Public Company Limited BRR

Establish in

1996, with the mission

n research

and development to improve sugarcane quality and productivity.

Supporting Business Sugarcane Development BRD

Establish in 2005,

produce and sale electricity from biomass power plants with capacity 9.9 MW

Since Jun 2012,

BEC sale electricity to Provincial Electricity Agency with maximize volume 8 MW

Electricity I

BEC

Establish in 2011,

the 2nd electricity factory of BRR with capacity 9.9 MW

COD on April 7,
2015. Sale 8 MW

electricity to Provincial Electricity Agency under FiT (Feed- in Tariff) system.

Electricity II

BPC

Establish on

2011, produce and sale fertilization with capacity 30,000 tons/year

Licensed

production and sale of organic fertilizer and

rganic

chemical fertilizer Fertilizer

KBF

Establish on

January 23, 2015 to support future third electricity

project. The

construction of BRR 3rd electricity factory has started since May 16, 2015. Electricity III BPP

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Pioneer of sugar factory in the Northeast.
The third highest sugar yield in Thailand (118 kg

sugar/ ton cane in 2013/14 crop year and 119 kg sugar/ ton cane in 2014/15).

Exceptional sugarcane field management system.
Strong ties with 15,000 contracted sugarcane

growers.

Bio-Energy business development with growth

potential.

BRR in Brief

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Cane fields

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Business Overview

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Sugarcane

Forecast production year 2014/15

Contract farm area

168,000 Rai

Sugar per Rai 12.34 tons

per Rai

Sugar content 13.00 C.C.S.

Processing in sugar mill 1 Ton By-product Business Filter Cake Bagasse 250 -260 kg. 40-50 kg. Raw and brown sugar Main Business 105 – 118 kg. Molasses 40 – 45 kg. Electricity Business Fertilizer Business 111.6 - 116.1 kWh 30 - 35 kg.

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Agenda

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II. Operating Results – Q 1 - 2015
I. BRR in Brief
III. Sugar Situation
IV. Investment Update
V. Q&A

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Net Income Analysis

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Unit: Baht million

The company profit increased from prior period by Baht 55.16 million due to the rise in sugar sale.

85.65 140.81 Q1'2014 Q1'2015

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Operating Results

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Total Revenue

Unit : million Baht

Revenue Breakdown

Q-Q

Total revenue increased due to the

company has recorded a revenue from a delivery of exported sugar with the amount of 81,700 ton, 43,070 tons higher than the same period last year.

Q-Q

996.39 1,387.91 Q1'2014 Q1'2015 78.66% 86.48% 5.46% 1.77% 8.23% 7.02% 7.65% 4.73% Q1'2014 Q1'2015 Sugar Electricity Fertilizer Other

Gross Profit Margin

25% 25% Q1'2014 Q1'2015

Q-Q

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Sugar Business

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Revenue from Sugar

Unit: Baht million

Sale Volume

Unit: Tons

213.59 159.29 422.70 880.31 150.06 161.26 Q1'2014 Q1'2015

Q-Q

Brown sugar Raw sugar Molasses 11,257 8,328 31,814 73,387 40,970 38,217 Q1'2014 Q1'2015

Q-Q

Brown sugar Raw sugar Molasses

Revenue increased due to the delivery of 81,700 tons of sugar, 43,070 tons

higher that the same quarter of the previous year.

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Sugar Business (Cont’)

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Average Price Sold
Gross Margin
Gross profit per 1 ton of sugar

Unit: Baht Unit: Baht per tons

18,975 19,126 13,287 11,995 3,663 4,220 Q1'2014 Q1'2015

Q-Q

Brown sugar Raw sugar Molasses 16% 16% Q1'2014 Q1'2015

%GP

1,529.75 1,594.48 Q1'2014 Q1'2015

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Fertilizer Business

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Revenue
Sale Volume
GP
The increase was due to the

company has sold more 1,170 tons than prior period.

82.25 97.37 Q1'2014 Q1'2015

Q-Q

Unit : million Baht Unit : Ton

6364 7534 8% 10% Q1'2014 Q1'2015

Q1’2014 Q1’2015

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Electricity Business

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Unit: Baht million

Revenue

The revenue and GP was lower due to the average selling price, FT, to EGAT was decreased from 0.48 Baht per unit to 0.41 – 0.40 Baht per unit.

Sale Volume
GP

54.63 51.54 Q1'2014 Q1'2015

Q-Q

15.57 16.53 Q1'2014 Q1'2015

Unit: Million unit

56% 54% Q1'2014 Q1'2015

Q-Q

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Agenda

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III. Sugar Situation
II. Operating Results – Q 1 - 2015
I. BRR in Brief
IV. Investment Update
V. Q&A

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BRR Production

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Contract farming area and sugarcane crushed
Yield per Rai

Note : * Estimate figure

Produced sugar volume

8.68 8.94 9.73 11.56 11.01 12.34 12.61 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15* 2015/16* 173,293 162,512 183,938 207,138 244,950 302,512 74,158 66,112 87,527 75,980 95,850 118,374 2010/11 2011/12 2012/13 2013/14 2014/15* 2015/16* Sugar Molasse

Though there was some weather

issues, sugarcane size has grown from 1.77 million tons in 2013/14 to 1.95 million tons in 2014/15.

The sugar export volume in 2015 is

around 180,000 tons.

98,000 118,000 107,900 129,000 168,000 178,000 200,000 1.17 1.58 1.48 1.75 1.85 1.95 2.51 0.5 1 1.5 2 2.5 3 50,000 100,000 150,000 200,000 250,000

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15* 2015/16*

Area (Rais) Cane crushed (million tons)

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Buriram Performance

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Total cane crushed for 2014/15 crop year is 1.951 million tons.
Total sugar production is 231,408 tons.
Sugar yield is 118.6 kg/ton cane.
Sugar Content 13.48 CCS.

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Sugar Price – NY No. 11 (June 4, 2015)

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Sugar No. 11 Price (June 8, 2015)

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Source: Barchart

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 International Sugar Organization (ISO) recently forecasted a small global sugar surplus of 620,000 tons in 2014/15. Deficit is expected in 2015/16.  Global sugar consumption is to rise to 171.50 million tons

r 1.8% in 2014/15, compare to 168.40 million tons in 2013/14.

 Indian government approved export subsidy program for 1.40 million tons of raw sugar for 2014/15 marketing year on February 19, 2015. Rate of subsidy in INR 4,000 per ton or US$ 65.  The likelihood of El Nino phenomenon in 2015 resulted in higher rainfall in the South and drier weather in the North.

World Sugar Situation

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 Vietnamese authority worries about its own sugar industry after the cut in sugar tariffs to 5% under ASEAN Trade in Goods Agreement (ATIGA) in 2018.  Due to prolong dried weather, Philippines has cut its sugar export to the US.

World Sugar Situation

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World Sugar Consumption Trend

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201 MT 180 MT

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Agenda

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IV. Investment Update
III. Sugar Situation
II. Operating Results – Q 1 - 2015
I. BRR in Brief
V. Q&A

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Projects

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Sugar Expansion Project

Sugar’s expansion project to 17,000 TCD has completed and started operate since December 2, 2014. The plan to expand to 22,000 TCD in 2015/16 crop year is underway.

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Projects

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Electricity Project

BPC, a second electricity plant had COD on April 7, 2015. Amount 8 MW sold to PEA with new pricing system, FiT (Feed-in Tariff). The construction

f

third electricity plant, Buriram Power Plus (BPP) has started since May 16, 2015 and is expected to complete in early 2016.

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Agenda

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IV. Investment Update
III. Sugar Situation
II. Operating Results – Q 1 - 2015
I. BRR in Brief
V. Q&A

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Disclaimer

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The views expressed here contain some information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Buriram Sugar Public Company Limited. Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.