SET OPPORTUNITY DAY 2Q16 RESULTS PRESENTATION 14 SEPTEMBER 2016 - - PowerPoint PPT Presentation

SET OPPORTUNITY DAY 2Q16 RESULTS PRESENTATION 14 SEPTEMBER 2016

Disclaimer

Certain forward looking statements may be made in the course of the presentation. These forward-looking statements generally can be identified by use of statements that include words or phrases such as LST & UPOIC

• r we or our management “believe”, “expect”, “anticipate”, ”intend”, ”plan”, ”foresee”, ”project”, ”may”,

“will”, “shall”, or other similar words or phrases. Similarly, statements that describe LST & UPOIC ’s objective, plans or goals also are forward-looking statements. These statements involve known and unknown uncertainties and risks that could differ materially from actual results, performance or events. The forward-looking statements contained in the slides are not and should not be constructed as representations of the future performance of LST & UPOIC and that such statements are an expression of the Company’s reviews based on its current view and certain assumptions including, but not limited to, prevailing economic and market conditions and currently available information. The reader or the listener is cautioned to not unduly rely on these forward-looking statements. We do not undertake any duty to publish any update or revision of any forward looking statements.

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)
• Financial Overview (LST)
• The Group’s Business Strategies
• Q&A

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)
• Financial Overview (LST)
• The Group’s Business Strategies
• Q&A

Philosophy of Lam Soon Group

Vision

“The leading food company with sustainable growth and development”

Mission

• Manufacturing high quality and nutritious food product together.
• Employing advance technology.
• Building trust and confidence toward our customers.

Our Development

1974 1978 1996 1983 2004 2003 2008 2007 2006 2009 2011 2012 .. 2016

Product Development Corporate Milestone

1974 Bangkok Edible Oil was founded 1978 Established Vegetable Oil Refinery at Bang Poo Industrial Estate 1983 Lam Soon (Thailand) Co,. Ltd was established 1996 LST was listed on the Stock Exchange of Thailand 2003 Became a major shareholder of “UPOIC” 2004 Acquisition of “UFC” 2008

• Joined the Roundtable on Sustainable Palm Oil

(RSPO)

• Constructed Biogas power plant at Trang mill

2006 Launched new product targeted at health conscious consumers under the brand “Naturel” 2007 Implemented Electricity power project under Clean Development Mechanism (CDM) and Carbon Credit Program 2009 “Jade” palm cooking oil was the first cooking oil awarded “Carbon Label” 2011 Launched soy milk products under the “UFC HomeSoy” 2012 UFC Launched Coconut water 2013 UFC launched “Chrysanthemum plus Lo Han Gua” 2014 LST launched the multipurpose - chocolate under “Daisy” brand 2015 LST launched Naturel 100% Coconut cooking oil and Naturel 100% Sunflower cooking oil. 2016 LST lauched Yok Extra and Naturel Rice Bran Oil Gold UFC lauched "The Asian Variants" 100% coconut water with real juice , Homesoy new flavor and Chooze new flavor.

Group Structure

Lam Soon (Thailand) UFC

Union Frost

UPOIC

Siam Elite Palm Phansrivivat

Phansri (Concession – Chaiburi) Prachakvivat (Concession – Khiansa)

98.83% 69.96% 97.00% 50.00% 99.98% 99.99% 99.99%

Strong Fundamental i.e. Fully Integrated Supply Chain

Raw Material Acquisition Production Sales & Marketing

Nursery Plant Oil Palm Plantation Crushing Mill

Value Adding Refinery Distribution Channel Start from nursery plant to ensure product quality 2 locations in Trang and Krabi with combined capacity 120 tons FFB / hr. Oil palm planted area

• f 32,944 rai

Total capacity 368,650 tons /year Build Awareness and brand recognition Cost saving from integrated distribution channel of LST and UFC

Fully Traceability – Quality & Profitable

Germinated Seeds

JV with CIRAD to develop

• wn palm

seeds species

Symbols of Excellence

HACCP ISO 9001 ISO 14001 GMP OHSAS / TIS 18001 HALAL FSSC 22000 ISO 28000 TLS 8001 RSPO

Our Products

Upstream

Seedling

Core Products Diversify Other Products

Crude Palm Oil Crude Palm Kernel Oil Electricity Power from Biogas Germinated Seeds

YOK EXTRA

Naturel – Rice Bran Oil Gold

NEW Flavors!!! 100% Coconut Water with Real Juice

UFC Refresh Coconut Water successfully launched “The Asian Variants” 100% Coconut Water with real juice in April 2016. There are 3 new variants (Coconut Water with Watermelon, Coconut Water with Thai Lime and Coconut Water with Matcha Green Tea) available in domestic and international market. UFC coconut water is from 100% natural coconut water and has the great taste of aromatic Thai coconut. It is a healthy beverage for natural rehydration. It contains no added sugar or other additives.

UFC HOMESOY

Homesoy with Ginger and Basil Seed Homesoy with ginger and basil seed was an innovation introduced to the ready-to-drink soy market by UFC. The new product combines Homesoy authentic soy milk flavours with health benefits ingredients making it a uniquely mouth-watering, convenient and healthy beverage. Homesoy is an appropriate and convenient beverage for health conscious, vegetarian or vegan consumers. Homesoy does not contain any preservatives, animal fats and dairy product. Homesoy with Ginger Homesoy with ginger is made from carefully selected premium soy beans from Canadian soybean combines with health benefits of the ginger. Homesoy Original Homesoy Original is made from carefully selected premium soy beans from Canadian soybean which are then put through traditional methods of extracting soy milk, preserving all the natural goodness within.

UFC CHOOZE

.

CHOOZE Watermelon Juice 55% mixed with Aloe Vera and Collagen CHOOZE Passion Fruit Juice 35% mixed with Aloe Vera and Collagen.

Products are made from 100% natural ingredients; freshly squeeze (not from concentrate) Non GMO , fresh aloe vera leaf and collagen from fish. The healthy beverage is low calories and 0% cholesterol. Deliver finest and refreshing taste from 100% natural for health conscious consumers. With its numerous benefits, it is a healthy drink for all on a daily basis.

Share Capital Information

Symbol LST Share Price ( 12 SEP 2016) 3.80 THB Historical price :

• 52-week high

4.56 THB

• 52-week low

3.76 THB

• No. of paid up shares :

820 Million Par value : 1 THB/Share Market Capitalization : THB 3,116 mm.

Stock Information 3 years share price performance (%) Dividend Payout Policy

The Company’ s policy is to pay dividends to shareholders of an amount not less than 40% of its net earnings after tax subject to the Company’s future investment and funding requirements. Source: www.setsmart.com Source: www.setsmart.com

Major Shareholders (As of May 10, 2016) Percentage of Paid-up Capital (1) Lam Soon Holding Co., Ltd. 42.11 (2) Hap Seng Consolidated Berhad 20.00 (3) CIMB Securities (Singapore) Pte Ltd 11.03 (4) Lam Soon Cannery Pte Ltd. 7.48 (5) Mr. Suwit Laohapolwattana 3.34 (6) CIMB Securities Limited 1.62 (7) Ms. Supaporn Smittinun 1.25 (8) Mrs. Pennipa Duangsittisombat 0.70 (9) The Hongkong and Shanghai Banking 0.70 Corporation Limited, Singapore Branch (10) Mr. Niti Chongsawadchai 0.65 (11) Ms. Nalin Chongsawadchai 0.65

0.16 0.39 0.47 0.34 0.25 0.08 0.20 0.20 0.20 0.15 50.0% 51.3% 42.6% 58.8% 60.0% 0.0% 20.0% 40.0% 60.0% 80.0%

• 0.20

0.40 0.60 0.80 1.00

2011 2012 2013 2014 2015

EPS (Baht/Share) DPS (Baht/Share) Dividend Payout Ratio (Based on operational year)

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)
• Financial Overview (LST)
• The Group’s Business Strategies
• Q&A

UPOIC’s Philosophy

18

Vision

“The leading sustainable palm oil business company with operational excellence, international best practices, and world-class competitive strengths.”

Mission

• Building capacity in entire palm oil business value chain from seeding, germinating, plantation, crop oil extraction and related

business so as to be competitive and recognizing in the future

• Performing the high value palm oil business by focusing in research and development of palm seed breeding of seed with

high yield and adaptable to a range of cultivation area to fulfill grower requirements as well as providing the best services.

• Employing advanced technology in production, research and development with international management system as well as

taking care of the environment, biodiversity, communities, and society.

• Always ensuring the health, safety, and welfare of all employees and building trust and confidence among our customers,

grower/suppliers and generate return to shareholders and other stakeholders appropriately.

Corporate Milestones

1978 1991 1997 1994 2003 2006

UPOIC was established UPOIC was listed company

• n the Stock

Exchange of Thailand (SET) Issuing new share in exchange for an 100% stake in Phansrivivat 1997 LST began purchasing UPOIC shares 2003 LST acquired more shares in UPOIC , and as a result became the major shareholder of UPOIC UPOIC entered into a joint venture with CIRAD to form Siam Elite Palm Co., Ltd. Joined the Roundtable on Sustainable Palm Oil (RSPO)

2008

Share Capital Information

Stock Information

Symbol UPOIC Share Price ( 12 SEP 2016) 5.60 THB Historical price :

• 52-week high

7.80 THB

• 52-week low

4.32 THB

• No. of paid up shares :

324.05 Million Par value : 1 THB/Share Market Capitalization : THB 1,814 mm.

Source: www.setsmart.com Source: www.setsmart.com

Dividend Payout Policy

Major Shareholders as of May 10,2016 Percentage

• f Paid-up

Capital (1) Lam Soon (Thailand) Plc. 69.96 (2) Wattanachote Co., Ltd. 5.70 (3) Mr. Somkiat Peetakanonda 1.68 (4) Mr.Thammanoon Sahadithdamrong 1.17 (5) Thai NVDR Co., Ltd. 1.17 (6) Wattanasophonpanich Co., Ltd. 1.12 (7) Mr. Dusadee Thanissaranont 0.74 (8) GreenSpot Co., Ltd. 0.73 (9) Mr. Chawalit Tsao 0.71 (10) Mrs. Nancy Chalermkanjana 0.63 1.20 1.01 0.68 0.52 (0.04) 1.10 0.90 0.60 0.30 0.10 91.7% 89.1% 88.2% 57.7% 0.0% 50.0% 100.0% (0.50)

• 0.50

1.00 1.50 Y2011 Y2012 Y2013 Y2014 Y2015* EPS (Baht/Share) DPS (Baht/Share) Dividend Payout Ratio (Based on operational year)

Remark : Dividend payment for year 2015 was paid from retain earning

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)
• Financial Overview (LST)
• The Group’s Business Strategies
• Q&A

FFB Output in Thailand (2006 – 1H2016)

Source: Internal Trade Department

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H16 FFB Output 6,540 6,195 9,254 8,021 7,976 10,529 11,106 12,373 11,859 11,968 5,508 % Growth 48.1%

• 5.3%

49.4%

• 13.3%
• 0.6%

32.0% 5.5% 11.4%

• 4.2%

0.9%

• 16.18%

48.1%

• 5.3%

49.4%

• 13.3%
• 0.6%

32.0% 5.5% 11.4%

• 4.2%

0.9%

• 16.18%
• 20.0%
• 10.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

• 2,000

4,000 6,000 8,000 10,000 12,000 14,000 '000 MT

Generated from 4.5 million rai of harvested area, FFB output in 2016 expected to be slightly less than in 2015 due to drought condition.

CPO Production in Thailand (2006 – 1H2016)

23

Source: Internal Trade Department ‘000 MT

1,168 1,052 1,544 1,345 1,288 1,832 1,891 2,135 2,001 2,068 897 48.9%

• 9.9%

46.9%

• 12.9%
• 4.3%

42.3% 3.2% 12.9%

• 6.3%

3.4%

• 16.73%
• 30.0%
• 20.0%
• 10.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 500 1,000 1,500 2,000 2,500 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011 Y2012 Y2013 Y2014 Y2015 1H2016 CPO FOR FOOD,INDUSTRIAL USE, EXPORT CPO USED BY BIO-DIESEL Growth

In normal circumstance, CPO production maintained at 2 million MT with the following usage:- 1) Export 60,000 MT; 2) Consumption and Industrial use 900,000–1,000,000 MT; 3) Bio-diesel 700,000-1,000,000 MT.

Monthly FFB Output and FFB Price

‘000 MT Baht/ K.G. FFB output dropped dramatically caused by El Nino phenomenon which effected FFB price in first half 2016

Source: Internal Trade Department Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Output '14 738 864 1,351 1,395 1,577 1,286 1,073 929 890 785 581 391 Output '15 451 683 1,193 1,449 1,573 1,224 1,030 947 982 989 826 623 Output '16 578 729 1,069 1,156 1,091 886 Price '14 5.73 6.09 5.18 3.91 4.20 4.51 5.09 4.79 4.50 4.70 5.37 5.87 Price '15 6.18 6.31 4.96 4.39 4.31 4.84 4.16 3.99 3.56 4.04 4.41 4.70 Price '16 5.40 5.18 4.65 5.30 5.51 5.61 5.73 6.09 5.18 3.91 4.20 4.51 5.09 4.79 4.50 4.70 5.37 5.87 5.40 5.18 4.65 5.30 5.51 5.61

• 1.00

2.00 3.00 4.00 5.00 6.00 7.00

• 500

1,000 1,500 2,000 2,500 3,000

FFB Output and FFB Price

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CPO 2014 122 138 214 220 263 218 193 162 155 145 102 69 CPO 2015 70 105 188 227 268 218 183 174 177 185 152 122 CPO 2016 96 120 176 188 168 148 O.E.R. '14 17.2% 16.7% 16.2% 16.2% 16.7% 17.2% 17.7% 17.8% 17.6% 17.6% 17.7% 17.4% O.E.R. '15 16.6% 16.0% 16.3% 16.0% 16.6% 17.5% 18.2% 18.4% 18.6% 18.7% 18.9% 18.6% O.E.R. '16 17.9% 16.7% 16.5% 16.2% 15.4% 16.3% 17.2% 16.7% 16.2% 16.2% 16.7% 17.2% 17.7% 17.8% 17.6% 17.6% 17.7% 17.4% 17.9% 16.7% 16.5% 16.2% 15.4% 16.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

• 50

100 150 200 250 300 350 400

Monthly CPO Production and Oil Extraction Rate (O.E.R.)

O.E.R. ‘000 MT Source: Internal Trade Department

Average OER (17%) in Thailand much lower than 20% as the standard level in Malaysia who targets to improve to 25% within 2020

Thailand CPO Stock Equivalent and CPO Price

Source: Internal Trade Department ‘000 MT Baht/ K.G.

The nationwide CPO stock sharply decreased from October 2015 at 394,192 MT to an average level of 195,000 – 220,000 MT in 1H2016, pushing price up to 32.26 – 35.50 THB / Kg. in Q2 2016.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CPO Stock 2014 151 154 221 257 325 345 344 335 323 319 254 168 CPO Stock 2015 117 156 203 285 385 449 450 462 448 449 394 335 CPO Stock 2016 261 215 195 213 220 223 CPO Price 2014 33.07 34.50 31.65 27.69 27.84 26.68 26.80 25.36 24.27 25.27 29.08 30.61 CPO Price 2015 35.44 36.39 28.54 26.15 26.17 27.43 26.22 25.29 21.50 23.94 24.94 26.00 CPO Price 2016 29.63 30.10 29.02 32.26 33.93 35.50 35.44 36.39 28.54 26.15 26.17 27.43 26.22 25.29 21.50 23.94 24.94 26.00 29.63 30.10 29.02 32.26 33.93 35.50

• 5.00

10.00 15.00 20.00 25.00 30.00 35.00 40.00

• 100

200 300 400 500 600 700 800 CPO Stock

Malaysia Production of Crude Palm Oil

Source : Malaysian Palm Oil Board

• 2016F : 19 million MT
• 2015 : 20 million MT
• 2014 : 19.7 million MT

Malaysia Palm Oil Stock

Source : Malaysian Palm Oil Board

Lower average stock in 2016 when compared with 2015 due to lower output caused by El Nino phenomenon.

Comparison of CPO Wholesale Price Between Bangkok and Malaysian Market

Source: Internal Trade Department

CPO price difference as high as 11 THB/kg. when compared to CPO price in global market., destroy the competitiveness in the long term.

15.77 24.45 28.96 24.33 29.10 36.59 30.86 25.24 28.57 27.33 31.74 15.73 24.80 28.56 21.96 27.02 32.63 28.89 23.27 24.05 19.24 21.97

• 10.00

20.00 30.00 40.00 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011 Y2012 Y2013 Y2014 Y2015 1H16

THB/Kg.

CPO Wholesale Price in Bangkok market CPO Wholesale Price in Malaysian market

Source: http://www.indexmundi.com

Global consumption of vegetable oils from 1995/1996 to 2015/2016, by oil type

15.8 35.3 37.7 39.4 42.1 44.5 47.6 50.2 55.0 57.3 60.7 61.5 19.7 33.6 35.6 37.5 36.0 38.3 40.7 42.2 42.6 45.4 46.8 51.2 11.2 16.9 17.6 18.3 20.1 22.4 23.3 23.7 23.7 25.6 27.0 27.1 8.6 9.8 10.3 9.4 10.6 11.4 11.8 13.0 13.2 14.6 15.2 14.6 16.4 19.8 20.0 20.5 20.9 21.2 22.0 22.8 23.2 23.5 23.6 23.0

• 20.0

40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 200.0 Palm Oil Soybean Oil Canola Oil Sunflowerseed Oil Other Million MT Source : Statista.com

Palm oil contributes the highest portion at 35% of global consumption of vegetable oils , followed by Soybean oil.

Soybean Oil vs Palm Oil Price Rate of Change Comparison

Source: http://www.indexmundi.com

Correlation coefficient 0.726677 The low price of Soybean oil caused by oversupply in global market continued in 2016 was another factor pressing down CPO price not to climb up that much

Palm Kernel Oil vs Palm Oil Price Rate of Change Comparison

Source: http://www.indexmundi.com

Correlation coefficient 0. 769389

Palm Kernel Oil vs Coconut Oil Price Rate of Change Comparison

Source: http://www.indexmundi.com

Correlation coefficient 0.843975 Lauric oil values remain strong and this trend is likely to remain for the rest of 2016 due to high demand for coconut

Price Comparison of Other Oil Types

Factors affecting world palm oil industry in 2H2016

• In China, palm oil inventory in August was at about 300,000 MT, the

lowest since 2010 while the mid-Autumn festival (Moon Cake festival ) starting on 15/9.

• Return of India’s buying interest in palm oil was seasonally due to

the upcoming Deepavali celebration.

Low level of current stock in China and India

• Led by coconut oil, lauric oil values remain strong and this trend is

likely to remain for the rest of 2016 due to high demand for coconut, put pressure on palm oil price.

Lauric oil values continue to remain high

• Market got influenced more by the weakening ringgit from the

strength of US dollars. Weaker ringgit leads to higher exports as it makes palm oil cheaper for foreign buyers.

Ringgit Currency

USDMYR:CURRENCY (1Y)

Source: Bloomberg

Factors affecting world palm oil industry in 2017

• Lower energy values due to fear of global supply and high inventory

put pressure on palm oil as the palm oil often takes price direction for Petroleum price.

Petroleum price

• High soybean production next year (US crop production in particular)

led to an expectation that global soybean oil inventory would be increased, putting pressure on soybean oil price, and then palm oil price.

Price of Soybean Oil

• Biodiesel demand is running up..
• Malaysia heading to B10 for transportation and B7 for industry
• Indonesia heading to B20
• While production may not recover as much as expectation

Biodiesel Policy

• In the L-T, slower global economic growth will be negative for palm oil

price as it could result in weaker demand growth for edible oil usage in food, oleochemicals, and biodiesel.

Slower global economic growth

US Soy oil futures daily chart

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)
• Financial Overview (LST)
• The Group’s Business Strategies
• Q&A

Performance Summary (Consolidated)

40

Reported 1H16 net profit increased 375.2%YoY to THB 80 Million Share price movement (Jan-12 Sep 16 ) +22.8%

17 34 59 635 80 102 149 559 Net Profit EBIT Gross Profit Sales revenue

1H16 Financial Summary

1H16 1H15

• 76 mTHB

+90mTHB +69 mTHB +63 mTHB

2Q16 Performance Summary

Operating Profit

THB 42.95 mn

Net Profit (after tax)

THB 33.14 mn

Sales

THB 267.02 mn

Gross Profit

THB 83.62 mn

YoY Change 2Q16 vs 1Q16

+0.36%

• 8.64%

+20.90% +28.58%

• 27.70%

+27.44%

• 15.99%

+28.93%

FFB Crop 2011 – 1H2016

42 55% 51% 53% 49% 35% 45% 49% 47% 51% 65% 0% 20% 40% 60% 80% 100% Y2011 Y2012 Y2013 Y2014 Y2015 Own Estates Out-grower 34% 44% 66% 56% 0% 20% 40% 60% 80% 100% 1H15 1H16 Own Estates Out-grower 29% 37% 46% 42% 71% 63% 54% 58% 0% 20% 40% 60% 80% 100% 1Q15 2Q15 1Q16 2Q16 Own Estates Out-grower

Revenue by Segment

43

Million Baht 84% 85% 84% 81% 83% 79% 13% 8% 10% 12% 13% 17% 3% 6% 6% 6% 4% 4% 0% 20% 40% 60% 80% 100% Y2011 Y2012 Y2013 Y2014 Y2015 1H16 CPO CPKO Others 1,472 1,536 1,352 1,154 1,260 559

• 500

1,000 1,500 2,000 2,500 Y2011 Y2012 Y2013 Y2014 Y2015 1H16 CPO CPKO Others

Sales Performance (Consolidated)

44 +0.36% YOY

• 8.64% 2Q16 vs 1Q16
• 11.99% YOY

Million Baht Million Baht 266.1 292.3 267.0 0.0 100.0 200.0 300.0 400.0 500.0 2Q15 1Q16 2Q16 CPO CPKO Others 635.5 559.3

• 100.0

200.0 300.0 400.0 500.0 600.0 700.0 1H15 1H16 CPO CPKO Others

Gross Profit (Consolidated)

45 +20.9% YOY +28.5% 2Q16 vs 1Q16 +151.9% YOY Million Baht Million Baht 69 65 84 26.0% 22.3% 31.3% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 10 20 30 40 50 60 70 80 90 2Q15 1Q16 2Q16 Gross profit GP Margin 59 149 9.3% 26.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 20 40 60 80 100 120 140 160 1H15 1H16 Gross profit GP Margin

Net Profit(Consolidated)

• The Group has net profit Baht 80 million increased by Baht 63 million or 375.2% (1H/2015:

Baht 17 million)

46

• 15.9% YOY
• 28.9% 2Q16 vs 1Q16
• 375.2% YOY

Million Baht Million Baht 17 80 2.6% 14.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 10 20 30 40 50 60 70 80 90 1H15 1H16 Net profit Net profitMargin 39 47 33 14.8% 16.0% 12.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 5 10 15 20 25 30 35 40 45 50 2Q15 1Q16 2Q16 Net profit Net profitMargin

Profitability Analysis (Consolidated)

Return on Asset (ROA) Return on Equity (ROE)

36.3% 31.4% 20.0% 12.1%

• 0.8%

4.9% Y2011 Y2012 Y2013 Y2014 Y2015 1H16 32.0% 27.9% 14.7% 16.8%

• 1.1%

6.9% Y2011 Y2012 Y2013 Y2014 Y2015 1H16

Financial Position Summary (As of June 30,2016)

Total Debt & D/E Ratio Interest Coverage Ratio (Times) Total Asset (Million Baht)

Million Baht Times

145 131 399 431 520 459 0.14 0.13 0.36 0.38 0.49 0.40

• 0.20

0.40 0.60

• 200

400 600 800 Y2011 Y2012 Y2013 Y2014 Y2015 1H16 Debt (Mil.Baht) D/E Ratio (times) 232.0 39.0 9.0 22.63 Y2013 Y2014 Y2015 1H16 12 281 295 262 272 252 768 495 938 910 976 950 433 398 268 383 335 415 1,213 1,174 1,501 1,555 1,583 1,617 Y2011 Y2012 Y2013 Y2014 Y2015 1H16 Other Asset PP&E Current Asset

2Q16 Income Statement

49 (Million baht) 2Q16 % to Sales 2Q15 % to Sales 1Q16 % to sales 2Q16/ 2Q15 Change 2Q16/ 1Q16 Change Sales 267.02 100.0% 266.06 100.0% 292.27 100.0% 0.36%

• 8.64%

Cost of sales

• 183.41
• 68.7%
• 196.90
• 74.0%
• 227.24
• 77.7%
• 6.85%
• 19.29%

Gross profit 83.62 31.3% 69.16 26.0% 65.03 22.3% 20.90% 28.58% SG&A expense

• 16.14
• 6.0%
• 21.51
• 8.1%
• 16.91
• 5.8%
• 24.95%
• 4.51%

Other income* 4.06 1.5% 11.75 4.4% 1.65 0.6%

• 65.43%

146.57% Gain / (Loss) from change in fair value of biological assets

• 28.59
• 10.7%

0.00 0.0% 9.42 3.2%

• 403.56%

EBIT 42.95 16.1% 59.40 22.3% 59.19 20.3%

• 27.70%
• 27.44%

FinanceCost

• 2.22
• 0.8%
• 2.62
• 1.0%
• 2.30
• 0.8%
• 15.32%
• 3.48%

EBT 40.73 15.3% 56.78 21.3% 56.89 19.5%

• 28.27%
• 28.41%

Tax

• 7.59
• 2.8%
• 17.33
• 6.5%
• 10.26
• 3.5%
• 56.22%
• 26.05%

Net income 33.14 12.4% 39.45 14.8% 46.63 16.0%

• 15.99%
• 28.93%

Net income (Loss attribute to : Equity holder of the Company 33.14 12.4% 39.45 14.8% 46.63 16.0%

• 15.99%
• 28.93%

Non-Controlling interests of the subsidiaries 0.0% 0.0% 0.0% Earning per share 0.10 0.12 0.14 Remark *Including share of income from investment in associates Consolidated

1H16 Income Statement

50 (Million baht) 1H16 % to Sales 1H15 % to Sales 1H16/ 1H15 Change Sales 559.29 100.00% 635.48 100.00%

• 11.99%

Cost of sales

• 410.64
• 73.42%
• 576.47
• 90.71%
• 28.77%

Gross profit 148.65 26.58% 59.01 9.29% 151.89% SG&A expense

• 33.05
• 5.91%
• 46.04
• 7.25%
• 28.23%

Other income* 5.71 1.02% 20.61 3.24%

• 72.30%

Gain / (Loss) from change in fair value of biological assets

• 19.17

0.00 EBIT 102.14 18.26% 33.58 5.28% 204.20% FinanceCost

• 4.51
• 0.81%
• 5.29
• 0.83%
• 14.70%

EBT 97.62 17.45% 28.28 4.45% 245.16% Tax

• 17.85
• 3.19%
• 11.50
• 1.81%

55.25% Net income 79.78 14.26% 16.79 2.64% 375.22% Net income (Loss attribute to : Equity holder of the Company 79.78 14.26% 16.79 2.64% 375.22% Non-Controlling interests of the subsidiaries 0.00% 0.00% #DIV/0! Earning per share 0.25 0.05 Remark *Including share of income from investment in associates Consolidated

Statement of Financial Position as of June 30, 2016

51 (Million baht) 2Q16 % to total assets 2015 % to total assets Change Cash and cash equivalents 100.24 6.20% 76.90 4.86% 0.30 Trade and other receivables 41.99 2.60% 139.86 8.84%

• 69.97%

Inventories 147.70 9.13% 43.79 2.77% 237.25% Other current assets 63.73 3.94% 35.21 2.23% 80.99% Total current assets 353.66 21.87% 295.76 18.69% 19.58% Fixed assets 950.28 58.77% 976.21 61.69%

• 2.66%

Cost of forest land rights and cost of palm planta 202.82 12.54% 201.32 12.72% 0.74% Other non-current assets 110.22 6.82% 109.22 6.90% 0.91% Total assets 1,616.98 100.00% 1,582.51 100.00% 2.18% Bank overdrafts and short-term loans 370.00 22.88% 400.00 25.28%

• 7.50%

Trade and other payables 32.01 1.98% 28.54 1.80% 12.18% Current portion of long-term loans 25.00 1.55% 75.00 4.74%

• 66.67%

Other current liabilities 21.02 1.30% 7.23 0.46% 190.95% Total current liabilities 448.04 27.71% 510.76 32.28%

• 12.28%

Long-Term Borrowings

• 0.00%
• 0.00%

Other non-current liabilities 11.27 0.70% 9.19 0.58% 22.68% Total liabilities 459.31 28.41% 519.95 32.86%

• 11.66%

Paid-up capital 324.05 20.04% 324.05 20.48% 0.00% Paid-in surplus 321.55 19.89% 321.55 20.32% 0.00% Retained earnings 512.08 31.67% 416.97 26.35% 22.81% Non-Controlling interests of the subsidiaries

• 0.00%
• 0.00%

Total shareholders' equity 1,616.98 100.00% 1,582.51 100.00% 2.18% Consolidated

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)
• Financial Overview (LST)
• The Group’s Business Strategies
• Q&A

Financial Summary - 2015

• Sales value decreased from 2014 by 8.7% due to the 6.7% decrease in CPO price and the corresponding decrease in average selling
• price. Sales volume decreased by 5.4%. Due to the average cost of CPO to the Company decreasing greater than the average

selling price, gross profit raised by 10.3 million Baht and net profit of the Company itself decreased by 76 million Baht or 27.1%. The major reason was a decrease in dividend received from a subsidiary by 90.6 million Baht when compared with the previous year. 280 331 645 6,932 204 255 655 6,329 Net Profit EBIT Gross Profit Sales revenue

LST

Y2015 Y2014 +602 mTHB +76 mTHB +76 mTHB +10 mTHB 439 582 1,360 8,435 309 452 1,282 8,197 Net Profit EBIT Gross Profit Sales revenue

Consolidated

Y2015 Y2014 +238 mTHB +78 mTHB +130 mTHB +130 mTHB

53

1H16 Financial Summary

200 281 674 4,271 189 260 685 4,080 Net Profit EBIT Gross Profit Sales revenue

1H16 Financial Summary Consolidated

1H16 1H15

• 190 mTHB

+11 mTHB

• 21 mTHB
• 11 mTHB

129 156 337 3,346 78 81 209 2,970 Net Profit EBIT Gross Profit Sales revenue

LST

1H16 1H15

• 376 mTHB
• 51 mTHB
• 75 mTHB
• 128 mTHB

54

2Q16 Performance Summary (Consolidated)

Operating Profit

THB 153.7 mn

Net Profit to Equity Holder

THB 103.6 mn

Sales

THB 2,102.9 mn

Gross Profit

THB 384.2 mn

YoY Change 2Q16 vs 1Q16

• 0.88%

+6.34%

• 2.75%

+27.88%

• 20.65%

+44.62%

• 20.26%

+69.99%

Sales Performance 2015 (Consolidated)

Million Baht 7,244 8,434 8,198

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Y2013 Y2014 Y2015

Vegetable Oil Margarine & Shortening Other palm based Products Electricity Beverages Fruits and Vegetables Sauces & Seasonings

6% 5% 6% 55% 60% 55% 8% 7% 7% 6% 5% 6% 8% 10% 15% 16% 12% 10% 2% 1% 1% Y2013 Y2014 Y2015

Cruded Palm Oil Vegetable Oil Margarine & Shortening Other palm based Products Electricity Beverages Fruits and Vegetables Sauces & Seasonings

8,434 8,198

• 566
• 19
• 2
• 150
• 1

+46 + 107 + 349 11.2% -11.2%

• 3%

26%

• 7%

41%

• 15%
• 1%
• 2.79% YOY

Sales Performance (Consolidated)

Million Baht

• 0.88% YOY

+6.34% 2Q16 vs 1Q16

• 4.46% YOY

Million Baht 4,271.0 4,080.5

• 1,000.0

2,000.0 3,000.0 4,000.0 5,000.0 6,000.0 6M/2015 6M/2016 2,121.6 1,977.6 2,102.9

• 500.00

1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 2Q15 1Q16 2Q16

Gross Profit (Consolidated)

• 2Q16 gross profit(GP) reduced to 18.3% (Q2/2015 : 18.6%). For the company itself, GP

decreased by Baht 59 million as above reason. While GP of its subsidiaries increased Baht 48 million : the GP of the Company and its subsidiaries decreased by Baht 11 million or 2.8%

• 2.8% YOY

+27.8% 2Q16 vs 1Q16 +1.61% YOY Million Baht Million Baht 395 300 384 18.6% 15.2% 18.3% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 100 200 300 400 500 600 700 800 900 1,000 2Q15 1Q16 2Q16 Gross profit GP Margin 674 685 15.8% 16.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 100 200 300 400 500 600 700 800 900 1000 1H15 1H16 Gross profit GP Margin

Net Profit (Consolidated)

• -20.26% YOY

+69.99% 2Q16 vs 1Q16

• 16.29% YOY

Million Baht Million Baht 200 189 4.7% 4.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 50 100 150 200 250 300 350 400 450 500 1H15 1H16 Net profit Net profitMargin 140 74 114 6.6% 3.7% 5.4%

• 1.0%

1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 50 100 150 200 250 300 350 400 450 500 2Q15 1Q16 2Q16 Net profit Net profitMargin

Profitability Analysis (Consolidated)

Return on Asset (ROA) Return on Equity (ROE)

5.2% 6.8% 6.0% 14.8% 9.6% 5.7% Y2011 Y2012 Y2013 Y2014 Y2015 1H16 11.0% 14.1% 11.1% 8.6% 5.3% 3.2% Y2011 Y2012 Y2013 Y2014 Y2015 1H16

Financial Position Summary (As of June 30,2016)

Total Debt & D/E Ratio Interest Coverage Ratio (Times) Total Asset (Million Baht)

Million Baht Times

9.3 10.9 13.9 16.2 14.5 11.4 Y2011 Y2012 Y2013 Y2014 Y2015 1H16 560 571 586 591 619 646 1,876 1,865 2,181 2,085 2,426 2,425 3,235 2,785 2,396 2,448 2,826 2,803 5,671 5,221 5,163 5,124 5,871 5,875 Y2011 Y2012 Y2013 Y2014 Y2015 1H16 Other Asset PP&E Current Asset

3,163 2,468 2,311 2,030 2,648 2,549 1.26 0.90 0.81 0.66 0.82 0.77

• 0.50

1.00 1.50

• 500

500 1,500 2,500 3,500 4,500 Y2011 Y2012 Y2013 Y2014 Y2015 1H16 Debt (Mil.Baht) D/E Ratio (times)

2Q16 Income Statement

(Million baht) 2Q16 % to Sales 2Q15 % to Sales 1Q16 % to sales 2Q16/ 2Q15 Change 2Q16/ 1Q16 Change Sales 2,102.92 100.0% 2,121.59 100.0% 1,977.56 100.0%

• 0.88%

6.34% Cost of sales

• 1,718.75
• 81.7%
• 1,726.54
• 81.4%
• 1,677.16
• 84.8%
• 0.45%

2.48% Gross profit 384.16 18.3% 395.05 18.6% 300.40 15.2%

• 2.75%

27.88% SG&A expense

• 217.59
• 10.3%
• 230.45
• 10.9%
• 220.18
• 11.1%
• 5.58%
• 1.17%

Other income* 15.71 0.7% 29.10 1.4% 16.63 0.8%

• 46.01%
• 5.51%

Gain / (Loss) from change in fair value of biological assets

• 28.59
• 1.4%

0.00 0.0% 9.42 0.5%

• 403.56%

EBIT 153.69 7.3% 193.70 9.1% 106.27 5.4%

• 20.65%

44.62% FinanceCost

• 11.47
• 0.5%
• 11.50
• 0.5%
• 11.25
• 0.6%
• 0.26%

1.96% EBT 142.22 6.8% 182.19 8.6% 95.02 4.8%

• 21.94%

49.67% Tax

• 27.73
• 1.3%
• 42.47
• 2.0%
• 20.90
• 1.1%
• 34.71%

32.68% Net income 114.49 5.4% 139.73 6.6% 74.12 3.7%

• 18.06%

54.46% Net income (Loss attribute to : Equity holder of the Company 103.55 4.9% 129.85 6.1% 60.91 3.1%

• 20.26%

69.99% Non-Controlling interests of the subsidiaries 10.95 0.5% 9.74 0.5% 13.21 0.7% 12.39%

• 17.14%

Earning per share 0.13 0.16 0.07 Remark *Including share of income from investment in associates Consolidated

1H16 Income Statement

(Million baht) 1H16 % to Sales 1H15 % to Sales 1H16/ 1H15 Change Sales 4,080.47 100.00% 4,270.97 100.00%

• 4.46%

Cost of sales

• 3,395.91
• 83.22%
• 3,597.24
• 84.23%
• 5.60%

Gross profit 684.57 16.78% 673.73 15.77% 1.61% SG&A expense

• 437.77
• 10.73%
• 446.30
• 10.45%
• 1.91%

Other income* 32.34 0.79% 53.36 1.25%

• 39.40%

Gain / (Loss) from change in fair value of biological assets

• 19.17

EBIT 259.96 6.37% 280.64 6.57%

• 7.37%

FinanceCost

• 22.72
• 0.56%
• 22.66
• 0.53%

0.27% EBT 237.24 5.81% 258.13 6.04%

• 8.10%

Tax

• 48.62
• 1.19%
• 58.42
• 1.37%
• 16.77%

Net income 188.61 4.62% 199.71 4.68%

• 5.56%

Net income (Loss attribute to : Equity holder of the Company 164.46 4.03% 196.46 4.60%

• 16.29%

Non-Controlling interests of the subsidiaries 24.16 0.59% 3.25 0.08% 643.32% Earning per share 0.20 0.24 Remark *Including share of income from investment in associates Consolidated

Statement of Financial Position as of 30 June 2016

(Million baht) 2Q16 % to total assets 2015 % to total assets Change Cash and cash equivalents 420.78 7.16% 479.94 8.17% 0.12

• Trade and other receivables

990.60 16.86% 1,152.26 19.63%

• 14.03%

Inventories 1,304.03 22.20% 1,127.36 19.20% 15.67% Other current assets 87.80 1.49% 66.33 1.13% 32.38% Total current assets 2,803.21 47.72% 2,825.89 48.13%

• 0.80%

Fixed assets 2,425.04 41.28% 2,425.93 41.32%

• 0.04%

Goodwill and other intangible assets 204.63 3.48% 205.65 3.50%

• 0.49%

Other non-current assets 441.77 7.52% 413.81 7.05% 6.76% Total assets 5,874.66 100.00% 5,871.28 100.00% 0.06% Bank overdrafts and short-term loans 1,473.00 25.07% 1,610.00 27.42%

• 8.51%

Trade and other payables 575.81 9.80% 494.03 8.41% 16.55% Current portion of long-term loans 128.00 2.18% 175.00 2.98%

• 26.86%

Other current liabilities 101.51 1.73% 123.90 2.11%

• 18.07%

Total current liabilities 2,278.32 38.78% 2,402.93 40.93%

• 5.19%

Long-Term Borrowings 185.01 3.15% 176.39 3.00% 4.89% Other non-current liabilities 85.22 1.45% 68.79 1.17% 23.89% Total liabilities 2,548.55 43.38% 2,648.11 45.10%

• 3.76%

Paid-up capital 820.00 13.96% 820.00 13.97% 0.00% Paid-in surplus 247.24 4.21% 247.24 4.21% 0.00% Retained earnings 1,900.32 32.35% 1,825.54 31.09% 4.10% Non-Controlling interests of the subsidiaries 358.55 6.10% 336.38 5.73% 6.59% Total shareholders' equity 5,874.66 100.00% 5,877.27 100.10%

• 0.04%

Consolidated

Agenda

• Company Overview (LST)
• Company Overview (UPOIC)
• Industry Overview
• Financial Overview (UPOIC)
• Financial Overview (LST)
• The Group’s Business Strategies
• Q&A

Moving Forward with Strategies

Vision “The leading food company with sustainable growth and development” Mission

• Manufacturing high quality and nutritious food product together.
• Employing advance technology.
• Building trust and confidence toward our customers.

Self reliant on key raw material

• Invest in Land purchase

for own plantation

Manufacturing Capabilities

• New Packing Line
• New Vacuum system

Diversified Product Portfolio

• Growing New categories
• New Product

Alternative Source of Income

• Explore Opportunity of

new investment

Strategies

Self reliant on key raw material

50% Renewed the concession land of UPOIC at Chai Buri Explore Opportunity to Invest in Land purchase for own plantation

1

50% Renewed the concession land

Manufacturing Capabilities

2

Investment of 400 million Baht to improve the productivity of Bang Poo Plant’s packing line

Increase Product Portfolio

3

New Products Launched

Alternative Source of Income

4

Bio Gas , Bio Mass Power Plant

Turning Waste to Worth

In 2015, The group generated 25 million Baht from waste in production process

Q&A

For further information & enquiries, please contact us at: Anchalee Suebchantasiri Piyathida Sukchan Managing Director Executive Director Tel: +66-(0)2-361 8959/87 Tel: +66-(0)2-361 8959/87 Email: anchales@lamsoon.co.th Email: piyatida@lamsoon.co.th Lam Soon (Thailand) Public Company Limited 64 Soi Bangna - Trad 25, Bangna, Bangkok 10260

• Tel. +66 2361 8959/87
• Fax. (Management Dept.) +66 2361 8988/89
• Fax. (Sales Dept.) +66 2361 8994/5

Email: secretary@lamsoon.co.th

Thank You

5 Year Profitability Summary (Consolidated)

72

Million Baht

Gross Profit Net Profit

Million Baht

644 442 325 299 59 43.7% 28.8% 24.0% 25.9% 4.7%

• 20.0%

0.0% 20.0% 40.0% 60.0%

• 200

400 600 800 Y2011 Y2012 Y2013 Y2014 Y2015 Gross Profit (Million Baht) Gross Profit Margin (%) 388 328 221 188

• 12

26.4% 21.3% 16.3% 16.3%

• 1.0%
• 10.0%

0.0% 10.0% 20.0% 30.0%

• 100
• 100

200 300 400 500 Y2011 Y2012 Y2013 Y2014 Y2015 Net Profit Net Profit Margin