opportunity day @ set - listed companybrr.listedcompany.com/misc/presentation/20180917-brr...น...

OPPORTUNITY DAY @ SETMONDAY, SEPTEMBER 17, 2018

น ้ำตำลสรำ้งในไร่ Sugar Made in the Field

I. BRR in Brief

II. Operating Results – Q 2/2018

III. Sugar Situations

IV. Investment Update

V. Q&A

AGENDA


COMPANY’S STRUCTURE

Buriram Sugar Public Company Limited99.99% 99.99% 99.99% 99.99% 99.99% 99.99%

Buriram Sugar Factory

Co., Ltd.

BSF

Buriram Sugarcane

Research and Development

Co., Ltd.

BRD

Key Brand FertilizerCo., Ltd.

KBF

Capacity: 9.9 MWSale : 8 MW

Buriram Energy Co., Ltd.

BEC

Buriram Power Plus Co., Ltd.

BPP

Chamni Sugar Factory Co., Ltd.

CSF

Produce and distribute bio-degradable products

SEW

BPC

99.99%

Buriram Power Co., Ltd.

- 24,000 TCD - Produce raw, VHP and refined sugar and molasse

Sugarcane and cane growersdevelopment

Produce and distribute of organic fertilizer and organic chemical fertilizer

Capacity: 9.9 MWSale : 8 MW

Capacity: 9.9 MWFeeding electricity and stream to BSF

New Sugar Mill’sLicense

Sugarcane EcowareCo., Ltd.


BRR IN BRIEF

➢ Pioneer of sugar factory in the Northeast

➢ Exceptional sugarcane field management system

➢ The nation’s Third highest sugar yield at 119 kg/ton, national average at 109 kg/ton.

➢ Strong ties with 13,000 contracted sugarcane growers

➢ Bio-energy & bio-product business development with growth potential

3


4

BRR


Cane fields within 40 km radius

BRR IN BRIEF

BSG

2016/17

2017/18


BUSINESS OVERVIEW

6

Sugarcane

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.


I. BRR in Brief

II. Operating Results – Q2 / 2018



V. Q&A

AGENDA


8

Unit: Million Baht

Gross profit decreased due to lower sugar price and weaken Baht.

FINANCIAL STATEMENT ANALYSIS


9

Unit: Million Baht

REVENUE BREAKDOWN


10

Unit: Million Baht

REVENUE FROM SUGAR


11

REVENUE FROM ELECTRICITY AND FERTILIZER Unit: Million Baht


AGENDA

I. BRR in Brief

II. Operating Results – Q2/2018



V. Q&A


CONTINUOUS GROWTH

ACREAGE / CANE CROP YIELD


CANE YIELD DEVELOPMENT

5

6

7

8

9

10

11

12

13

14

15

16

15/16 16/17 17/18

National Ave BRR

10.90

9.159.45

12.17

9.45

12.5

Ton/Rai

BRR cane yield is above national average by 19%, 28% and 41% in three crop years respectively and expects to generate higher cane yield year over year.


Note : * Estimate figure

Unit: Tons

▪ For 2017/18 crop year, BRR has crushed 3.15 million MT of cane and produced 378,185 MT of sugar.

BRR PRODUCTION


Cane, Sugar, Molasses and Bagasse

YearArea (Rai)

Cane Sugar* Molasses** Bagasse***

2015/16 190,000 2,060,649 234,686 82,425 309,097

2016/17 200,000 2,212,736 247,848 86,337 331,910

2017/18 240,000 3,154,586 378,185 126,236 465,000

2018/19F 240,000 3,200,000 380,000 130,000 465,000

Unit: Ton

Remark:*Sugar Yield @ 115 kg/ton cane

**Molasses Yield @ 40 kg/ton cane

***Bagasse Yield @ 15 %of cane

BRR PRODUCTION


MARKET SHARE

Domestic Sales33%

Foreign Sales67%

55.90%

16.40%

10.38%

8.64%

5.15%3.53%

Sugar Export Destination

Indonesia (109,939.64 MT)

Tanzania (32,250.00 MT)

Korea (20,418.00 MT)

Taiwan (17,000.00 MT)

Sri Lanka (10,125.00 MT)

Others (6,935.24 MT)

0%

20%

40%

60%

80%

100%

Retails ModernTrade

A S I AA F R I C A

O T H E R S

75.00%

23.48%

1.52%


THAI SUGAR EXPORT – Jan/Aug 2018

Thai Export

Raw: 4.12 million MT

White: 421,272 MT

Refined: 2.69 million MTTotal: 7.24 million MT

Export to Indonesia reached 2.7 million MT vs 1.8 million MT in 2017.

Source: 1) AP Commodities2) Thai Sugar Millers Corporation


Sugar Price : NY No. 11 March 19 (Sep 13, 2018)


Sugar Price : London No. 5 March 19 (Sep 13, 2018)


WORLD SUGAR SITUATION (1/2)

✓ Pleasant weather condition cum acreage expansion spurred Thai cane

from 2016/17 at 92.95 million MT to 134.88 million MT in 2017/18. In

2018/19, initial estimated for cane is around 127 – 130 million MT.

✓ UNICA, the Brazilian Sugarcane Industry Association, has approached

the Brazilian government about opening a panel at the World Trade

Organization, according to a release from the association. The release

cited sugar price declines of nearly 40% year on year and Indian export

subsidies as distorting global markets.

✓ Indian sugarcane production is estimated to reach 32.3 million mt

during the 2017-18 season, and expected to increase to 35.5 million mt

during the 2018-19 season, according to projections from the Indian

Sugar Mills Association. Domestic consumption is expected to be

around 26 million mt.

✓ On May 1st, India’s government announced INR 55/mt “special

assistance to be paid on all cane delivered in 2017/18 crop year. The

calculations are, on 280 million mt cane, that each ton of sugar

exported will have the indirect export subsidy equivalent of US$96/mt

from the Indian government.


Sugar production in south-central Brazil is expected to fall to 28 million

MT in the current 2018/19 crop, reflecting the greater targeting of

sugarcane to ethanol and drought in recent months.

China’s 2017/18 production is expected at 10.2 million MT, rose from

9.3 million MT in 2016/17 mostly from acreage expansion. China’s

import volume is expected around 5 million MT in 2018 and could go

as high as 6.5 million MT in the next 5 years.

The Green Pool consultancy last week lowered its forecast for the global

sugar surplus in the 2018/19 crop to 4.24 million MT from a previous

forecast of 6.62 million MT. "The main contributions to the fall in the

estimate of the 2018/19 surplus are the European Union (EU) and the CS

(center-south) of Brazil,“.

WORLD SUGAR SITUATION (2/2)


ASEAN SUGAR TARIFF

23

2014

Singapore 0%

Thailand 0%

Malaysia 0%

PhilippinesSensitive

• 2014 -10%, 2015 - 5%

Indonesia

Highly sentitive

• 2014 - Raw 10%, Whites – 20%

• 2015 - Raw 5%, Whites 10%

Cambodia 5%

Laos• 2014 - Raw & Whites 5%

• 2015 - Raw & Whites 0%

Myanmar

Sensitive

• 2015 - Raw & Whites 0-5%

Vietnam 5%


Retail sugar prices in ASEAN: Thailand is the lowest

24

Retail prices

Thailand 17-18 Baht

Laos 30-35 Baht

Cambodia 30-35 Baht

Vietnam 35-40 Baht

Myanmar 30-35 Baht

Indonesia 35-40 Baht

Philippines 35-40 Baht


I. BRR in Brief




V. Q&A

AGENDA


✓ Refinery Project to be completed in

2018/19 crop year.

✓ Capacity: 1,000 tons/day

✓ Estimated cost: 400 Million THB

✓ Products:

Refined Sugar

White Sugar

Refinery Project


On Going Work: Refinery Project

Modify existing machine


✓ Company: Sugarcane Ecoware Co., Ltd.

✓ Project: Produce bio-degradable packages from

bagasse

✓ Estimated investment Cost: 350 Million THB

✓ Current status & timing of project: 2018/19

Bio-Degradable Package Project


On Going Work: Bio-Degradable Project

Prepare for machinery setting.


Two New Greenfield Licenses

1) Chamni Sugar Factory Co., Ltd.

Crushing Capacity: 20,000 TCD

Tambon Nongplong, Chamni District,

Buriram Province

2) Buriram Sugar Public Company Limited

Crushing Capacity: 20,000 TCD

Tambon Nong Luang, Nonnarai District,

Surin Province

30


I. BRR in Brief




V. Q&A

AGENDA


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.

For more information, please contact: [email protected]

DISCLAIMER

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