1. business and industrial
2. energy
3. electricity

Kaset Thai International Sugar Corporation PCL
3 March 2015
Page 1 of 33
Agenda
 Y-2014 Operating Results
 Sugar & Bio Industrial Trends
 Appendix (Company Information)
Page 2 of 33
Y-2014 Operating Results
Page 3 of 33
Summary of Operating Results - 1
Total Revenues
Total Expenses
Unit: Baht million
Net Profit
Unit: Baht million
Unit: Baht million
Other Income
Financial Costs
Net Profit
Sales & Services Revenues
Selling & Admin. Expenses
Cost of Sales & Services
20,000
18,486
434
20,349
229
15,000
10,000
20,000
15,000
18,052
20,120
5,000
0
0
Y-2014
18,737
496
3,093
415
3,419
13,825
14,902
10,000
5,000
Y-2013
17,413
1,500
1,218
1,366
Y-2013
Y-2014
0
Y-2013
Y-2014
 Total revenues increased from all product sectors
 Total expenses increased in line with revenue from sales & services
 Net profit was better than last year
Page 4 of 33
Summary of Operating Results - 2
Sales & Service Revenue
Gross Profit Margin
Unit: Baht million
1.5% 2.9%
8.6%
Y-2013
78.8%
GPM - Bio
60%
2,011 44.9%
4,000
41.4% 1,585
Electricity
Others
GP - Bio
4,227
Paper Pulp
Ethanol
GPM - Sugar
5,218
Sugar
8.3%
GP - Sugar
2,000
2,642
40%
3,207
0
Sugar
7.9%
Paper Pulp
Y-2014
Ethanol
77.8%
Others
Electricity
20%
10%
Y-2013
8.6%
30%
20.5%
18.6%
3.1% 2.6%
50%
Y-2014
 Revenue from Bio business
continued to increase as per “KTIS
- More Than Sugar” strategy
 Gross profits and margins were
better than last year
Page 5 of 33
Sugar Revenue
Sugar Sales Volume (‘000 Ton) & Price (Baht)
Sugar Revenue
Unit: Baht million
15,644
15,000
14,227
636
796
Domestic Sales Volume
Domestic Selling Price
Sugar - International
International Sales Volume
International Selling Price
889
Molasses
8,216
9,742
5,000
725
13,877
5,107
19,739
19,000
592
400
5,375
1,001
19,607
800
10,000
13,443
297
14,000
276
0
0
Y-2013
*
Sugar - Domestic
9,000
Y-2013
Y-2014
Y-2014
Molasses Sales Volume (‘000 Ton) & Price (Baht)
Production
2012/13 2013/14
Thailand Cane
100.0
103.6 MMT
Sugar
100.2
112.9 MBg
Molasses
4.6
4.3 MMT
KTIS
Cane
9.9
9.9 MMT
Sugar
9.3
10.5 MBg
Molasses
0.4
0.4 MMT
Source: Office of the cane and sugar board
Molasses Sales Volume
Molasses Selling Price
5,000
4,232
150
100
50
3,732
170
188
0
4,000
3,000
2,000
Y-2013
Note: * white & refined sugar selling price only
Y-2014
Page 6 of 33
Pulp Revenue
Pulp Revenue
Sales Volume (ton) & Selling Price (Baht)
Unit: Baht million
1,496
Pulp - Domestic
Domestic Sales Volume
Domestic Selling Price
Pulp - International
International Sales Volume
International Selling Price
1,598
87,509
90,000
1,500
85,458
20,000
19,165
1,000
1,176
1,174
61,258
17,529
30,000
500
320
68,428
60,000
0
17,186
16,749
424
19,081
24,201
0
Y-2013
Y-2014
18,000
16,000
Y-2013
Y-2014
 Domestic and international selling prices were better than last year
Page 7 of 33
Ethanol Revenue
Ethanol Revenue
Sales Volume (‘000 Liter) & Selling Price (Baht)
Unit: Baht million
1,545
1,500
112
Ethanol - Domestic
Domestic Sales Volume
Domestic Selling Price
Ethanol - International
International Sales Volume
International Selling Price
1,736
0
66,059
1,000
1,433
1,736
30
6,209
60,000
45,000
68,819
0
25.23
23.95
30,000
20
500
15,000
0
18.08
59,850
68,819
0
Y-2013
25
Y-2014
15
Y-2013
Y-2014
 Domestic demand showed a strong increase, compared with last year
 Domestic selling price was better than last year
Page 8 of 33
Electricity Revenue
Electricity Revenue
Electricity Supplied (MWH) & Selling Price (Baht)
Electricity Revenue
Electricity Supplied
Selling Price
Unit: Baht million
3.52
600
150,000
400
100,000
3.50
3.45
616
200
3.40
50,000
264
3.38
77,912
0
175,111
0
Y-2013
Y-2014
3.55
3.35
3.30
Y-2013
Y-2014
 Revenue increased due to KTIS’s new power plant - KTBP
 Selling price was better than last year
Page 9 of 33
Dividend Payment
 Board of Director Meeting No.1/2015 held on 23 February 2015
approved to propose the AGM 2015 to approve:
 Legal Reserve of Baht 157,403,971
 the dividend payment for 2014 of Baht 694,800,000
= Baht 0.18 per share (or 61.54% of net profit)
 Record Date is scheduled on 6 May 2015
[Closing the share register book is scheduled on 7 May 2015]
[Ex-Dividend is scheduled on 29 April 2015]
 Dividend payment date is scheduled on 18 May 2015
Page 10 of 33
Company Information
(Future Projects)
Page 11 of 33
Future Projects
 Liquid sucrose (400 MT/day) &
Super refined sugar (500 MT/day)
 Two Biomass power plants (2 x 50MW)
 Bio fertilizer plant
 Feasibility Study of Bio Hub with PTTGC
Page 12 of 33
Sugar & Bio Industry Trends
Page 13 of 33
Positive Factors for Sugar
 World Supply / Demand for 2015 is expected to be nearly square
to deficit due to a lack of investment effected by low sugar price
 Low replanting rate due to tight financial conditions in many
mills may lead to less production and lower yield in Brazil
 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
other countries suffer from the low world sugar price
Page 14 of 33
Negative Factors for Sugar
 Weakening oil price may pressure world sugar market, through
the effects to the world ethanol price and increase of sugar
production ratio in Brazil
 Brazilian Real continues to depreciate against US Dollar more
than other sugar exporting countries’ currencies
 Indian Government has issued subsidiaries for sugar export to
solve the surplus under favorable weather that leads to good
production
 Four continuous years of world surplus lead to high stocks both
at export and import countries
Page 15 of 33
World Sugar Price
Source: Reuters
Page 16 of 33
Production Surplus/Deficit
Quarterly Production Surplus/Deficit
Source: KINGSMAN, January 2015
World Sugar Supply / Demand Balance
Source: LMC
Page 17 of 33
Brazilian Real / USD v.s. ICE No.11
R$/US$ Exchange Rate vs. ICE No.11
3
25
2.8
2.6
21
2.4
19
2.2
17
2
15
13
1/2/2013
Exchange Rate ( R$/US$ )
Sugar price ( cent/lb )
23
1.8
7/2/2013
1/2/2014
ICE No.11
7/2/2014
1/2/2015
R$/US$
Source: LMC
Page 18 of 33
Eucalyptus Pulp & Bagasse Pulp
Price Comparison ( 2013 – 2015)
800
Eucalyptus (CIF)
Bagasse (CFR)
700
600
500
Page 19 of 33
Alternative Energy Development Plan
(Year 2012-2021)
MLPD
Target
9.0 MLPD
3,285 MLPY
Now
3.77 MLPD
1,180 MLPY
3500
3000
2500
2000
1500
1000
500
ULG91
fade out
0
2008
2009
2010
2011
2012
2013
2014
2015f
2016f
2017f
2018f
2019f
2020f
2021f
Source: Department of Alternative Energy Development and Efficiency (DEDE)
Page 20 of 33
Ethanol Consumption Development
MLPD
3.77
4.0
3.0
2.82
3.14
3.13
3.28
3.41
3.37
3.43
3.52
2014
2013
2.0
2.15
1.0
2.92
3.03
3.18
2.33
2.48
2.58
2.57
2.59
2.64
2.76
2.6
2.71
2.83
2.88
2012
1.19
1.24
1.25
1.29
1.27
1.33
1.34
1.43
1.43
1.49
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
1.62
1.79
0.0
Nov
Dec
Ethanol
Consumption
(MLPD)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2012
2013
1.19
2.15
1.24
2.33
1.25
2.48
1.29
2.58
1.27
2.57
1.33
2.59
1.34
2.64
1.43
2.76
1.43
2.60
1.49
2.71
1.62
2.83
1.79
2.88
2014
2.82
2.92
3.03
3.18
3.14
3.13
3.28
3.41
3.37
3.43
3.52
3.77
Page 21 of 33
Growth in Electricity Demand
Peak load (MW)
 2030 Forecast peak demand grows 2.37 times higher than 2009
70,000
2030
60,000
50,000
2015
40,000
30,000
20,000
10,000
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
0
Source: Power Development Plan B.E. 2010 – 2030 (PDP 2010), Amendment No.3, Ministry of Energy
Page 22 of 33
Appendix
Company Information
Page 23 of 33
KTIS at a glance
 Founded in 1967 by Mr.Jaroon and Mrs.Hathai Siriviriyakul
 Possess 3 large sugar mills with a total cane crushing capacity of 88,000
tons cane per day, with one of the three is the world’s largest sugar mill
 Top 3 Group in Thai sugar industry, with 10% market share
 KTIS - More Than Sugar : expansion into the business related to byproducts from sugar production process
 Ethanol (one of Thailand’s leading ethanol manufacturers)
 Bleached bagasse pulp (the only bagasse pulp factory in Thailand)
 Electricity (60MW biomass power plant with 2 new 50MW projects coming up)
 Bio fertilizer
 Strategic partners with Sumitomo Corporation and Nissin Sugar
 SET50 & MSCI Global Small Cap
Page 24 of 33
Our factories
Uttaradit
Northern Thailand
TIS : Sugar Mill
18,000 tons of cane / day
TEP : Bio Power Plant
50 MW
Nakhon Sawan
KTIS : Sugar Mill
55,000 tons of cane / day
Nakhon Sawan
Uttaradit
KTBP : Bio Power Plant
60 MW
KTIS#3 : Sugar Mill
15,000 tons of cane / day
EPC : Ethanol Plant
230,000 liter / day
RPBP : Bio Power Plant
50 MW
Nakhon Sawan
EPPCO : Bagasse Pulp Mill
300 tons / day
KTBF : Bio Fertilizer Plant
Page 25 of 33
Our Strengths
1.1 KTIS – More Than Sugar
2.2 Strong Relationship with Cane Farmers
3.3 In-house Engineering Capability & Operational Expertise
4.4 Established Relationship with Blue-Chip Customers
5.5 Strategic Partners
Page 26 of 33
1
KTIS – More Than Sugar
 Fully-Integrated Business
 “Zero” Waste
Farmers Support Program
Cane Farmers
Electricity & Steam
Sugar Mill
Waste (Filter Cake)
Sugar
Molasses
Bagasse
Bio Fertilizer Plant
Biogas Plant
Ethanol Plant
Bagasse Pulp Mill
Bio Power Plant
Biogas
Ethanol
Bagasse Pulp
Electricity
Waste (Vinasses)
Waste (Sludge)
Waste (Bagasse Ashes)
Page 27 of 33
2
Strong Relationship with Cane Farmers
 Security of raw material
Farmers Support Programs were established as a stabilization measure for the procurement of raw materials by ensuring farmers focus on working on highly productive plantations, with :
 High “agricultural yield; and
 High “sucrose yield”
Support programs aim to educate farmers who supply to our factories on efficient sugarcane cultivation methods and technology which essentially provides a total solution to cane farmers :
(a)
Providing sugarcane cultivation technical know-how to farmers
 Farmers basic training course
 Special basic sugarcane cultivation course
 Tool training course
(e)
Provision of agricultural infrastructure for cultivation and harvesting
(f)
Farmers Financial Support for :
 Sugarcane cultivation
(b)
After-rain sugarcane cultivation
 Agricultural machinery and equipment
(c)
Maintenance of planted sugarcane
 Agricultural materials
(d)
Provision of sugarcane varieties
(e.g. Fertilizers and compost)
The Group’s sustainability and constant growth is due to our continued strong bond with our farmers
Page 28 of 33
3
In-house Engineering Capability &
Operational Expertise
Unrivalled Engineering Capacity & Farming Expertise
 Our highly skilled engineering team is a critical part of our Group as our ability to construct and maintain equipment result in significant savings
 We are one of the few players in the industry that manufactures most of its production equipment in-house
 Additionally, our 150-strong highly skilled team’s ability to provide maintenance help reduce maintenance expenditures and machine down-time
Manufacturing Machine
Agriculture Machine & Irrigation System
Our ability to construct most of the production equipment inhouse result
We also build our own agriculture machine to assist
farmers in farming process, which include :
in :
• Adjusting agriculture machine to smaller scale to suit
Thai sugarcane fields
 Significant savings via lower CapEx
 Customization of machineries to meet the Company’s
desired specifications
 Shorter delivery and lead time from installation to
commencement of operation
Example of machines constructed in-house :
• Designing new machines that can improve
efficiencies in both planting process and cultivation
process
In addition, KTIS group also developed the water
dropping irrigation system, which helps cane farmers
increase their cane yield
• Crusher machine
• Boiler machine
• Stacking machine
Our In-House Engineering Capabilities provides significant cost savings and reduces maintenance downtime and is a testament to our commitment to continuous
improvement
Page 29 of 33
4
Established Relationship with
Blue-Chip Customers
Sugar Business
Ethanol Business
Pulp Business
Electricity
Domestic Customers
Domestic Customers
Domestic Customers
Domestic Customers
Biodegradable
Packaging for
Environment
International customers
International Customers
International Customers
•
Strong and longstanding relationships with a broad base of customers - some for decades
•
Our attentiveness to client’s needs and requirements, strong responsiveness and consistent delivery of quality products is our winning formula
Page 30 of 33
5
Strategic Partners
Sumitomo Corporation and Nissin Sugar Co., Ltd joined us, as strategic partner
One of the biggest Japanese trading house
2nd biggest sugar refinery in Japan with strong retail brands
Page 31 of 33
Dividend Policy
 The Company has a policy to pay dividend for an amount of at least 50%
of its net profit of the separate financial statement, after deducting all
reserves required by the Company’s articles of association and laws
 This is provided that no necessary cause arises and the dividend payment
would not significantly impact the Company’s normal operation, based on
what the board of directors deem appropriate or suitable
 Such conduct must be carried out with the objective to maximize the
shareholders’ benefits
 The resolution of the board of directors will be proposed for further
approval from the shareholders’ meeting except for the case of interim
dividend payment, which the board of directors is authorized to approve
and then report the result of such interim dividend payment to the
shareholders’ meeting in the following meeting
Page 32 of 33
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.
For more information, contact : [email protected]
Page 33 of 33