Kaset Thai International Sugar Public : Management Discussion and Analysis Quarter 3 Ending 30 Jun 2021

IRCC 20/2564

13 August 2021

Subject Q3-2021 Operating results

To President

The Stock Exchange of Thailand

Kaset Thai International Sugar Corporation Public Company Limited ("the Company") would like to report on the Company and its subsidiaries' performance the third quarter of 2021, ended 30 June 2021, which had a net loss of Baht 422.4 million or decreased 164.5%, compared with a net profit of Baht 654.8 million in Q3-2020, ended 30 June 2020, as a result of following factors:

1. Total revenue in Q3-2021 increased Baht 133.6 million or 3.8% from Q3-2020, due to following details:

1.1 Revenue from contracts with customers in Q3-2021 increased Baht 305.4 million or 9.3% from Q3-2020, due to higher revenue from sugar business. However, lower amount of the Company's sugarcane for the 2020/2021 harvesting year, caused lower amount of raw material for bio business, thus decreases in revenues from such business. Details are as following:

• Revenue from sugar business increased 23.0%, as a result of increases in both total sugar sales volume and average sugar selling price.
• Revenue from bagasse pulp business increased 36.6%, as a result of increases in both total bagasse pulp sales volume and average bagasse pulp selling price.
• Revenue from ethanol business decreased 13.2%, as a result of lower ethanol sales volume.
• Revenue from electricity business decreased 48.4%, resulting from decreases in both electricity supplied and per unit selling price of electricity.
• Other sales and services revenues decreased 14.9%, as a result of lower revenues from agricultural machinery services and others.

1. 1.2 Other income in Q3-2021 decreased Baht 158.9 million or 77.8% from Q3-2020, as a result of lower other revenue.

2. Cost of sales in Q3-2021 increased Baht 1,243.1 million or 56.2% from Q3-2020, in line with the increase in revenue from contracts with customers.
3. Selling and administrative expenses in Q3-2021 decreased Baht 44.2 million or 9.8%, from Q3-2020, due mainly to decreases in expenses related to sugar export, human resources, transportation costs, warehouse expenses, vehicles and travelling expenses and others.
4. In Q3-2021 the Company had loss on exchange of Baht 100.0 million, compared with gain on exchange of Baht 16.8 million for the same period last year
5. Financial costs in Q3-2021 decreased Baht 10.4 million or 18.1% from Q3-2020.
6. Income tax expenses in Q3-2021 decreased Baht 6.2 million or 20.4% from Q3-2020, as a result of the Company's lower profit with higher deferred tax.

Please be informed accordingly.

Sincerely yours,

(Mr.Nathapun Siriviriyakul)

Deputy Chief Executive Officer - KTIS Group

Authorized person to sign on behalf of the company

Investor Relations & Corporate Communications Department:

Tel. [phone] ext.193 # 26, Fax. [phone]