 Backdrop  Broad Framework  Strategic Objective  Challenges - Money  Challenges - Manpower  Challenges - Material   Significant reduction in Crop Size  Reduction in both Quality and Yield  Sugarcane Farmers  Reduction in Revenue  Increasing Costs  Shortage of manpower  Harvest and Transportation  Fundamental change in Harvesting Groups  Reduction in Rail Transport Reliability  Poor Cane Access Roads  Vintage Cane Trucks  Long “Cut to Crush” Period

 Sugarcane Processing  Unreliable Machineries  Technology  Revenue Stream  Single revenue source (Raw )  Supplementary revenue from , Seasonal Electricity  Uncertainty of preferential access to EU Markets  “External” fund source to continue in Business

 Sugarcane Industry as against  Non-isolation of Industry components  3-prong approach to strategic  Good Quality Cane Yield  Efficient and Effective Processing  Maximum Revenue through Multiple Products and Multiple Customers  Commercial Viability – Reduced reliance on Government Funding. C A B Revenue from Increase in good Highly efficient multiple quality cane yield cane processing products/multiple buyers  Become a $1 billion Industry by 2020  Gross Balance Sheet in excess of $750 million (Excluding )  Debt / Equity ratio of 70 / 30  Annual Dividend of $80 to$100 million  Strategic Investments  Improvement to Raw Sugar Manufacture  Refined Sugar and Specialized Sweeteners  Cogeneration for electricity  Ethanol from Molasses

 Cash Strapped Organisation  Difficulties in meeting Cash Outflows from Income  Exposed to Foreign Currency Risks  Very Highly leveraged  Value-Driven Expenditure Processes  Over-emphasis on cost and cost reduction  Expenditure follows a Process and Not Expected Output.  Insufficient Funds  Reliance on “Top-up” Funding  Consolidating our Debts  5 Year Bonds  Government Loans  Utilisation of EXIM Bank  Drawing down Remaining Facility  Possibility of Re-Draw down  Potential for Further Borrowings  Re-engineer Financials  Foreign Exchange Management  Natural Hedges  Currency Hedging  Payment Currencies  Sugar Swaps  Arbitrage through Selling High and Buying Low  Increase Stockfeed  Approach is “Your Difficulties are Our Difficulties”  Quality Payment System  Seed Cane Nurseries  Enhanced Extension Services  Increase Revenue  Potential Refinery – New or Toll ($40 to $110m)  Ethanol from Molasses ($25 to $50m)  Electricity – Cogeneration ($50 to $90m)  Technical Competency  Ageing Experienced Staff  Ageing Industry People  Multiple Structures  External Influences  Technical Competency Up-skilling  Extensive Industry-related Training  Knowledge transfer – Tate and Lyle & Indian Coy  VSI Training  USP Management Training  Replacement of Retirees  Re-started Apprenticeship Training  Encouraging Private Further Studies  Lower Level Responsibilities and Accountabilities  Reduce External Influence  More direct Communication Channels

 Hybrid Arrangement  Old Inefficient Plant  Mainly Imported Component  High Value Stock Items  Standardizing Processes (Benchmarking)  Improvements in Interfacing  10-Year Asset Management Plan  Staged replacement of Inefficient Plant  Allocation of Investment Company-wide  Partnership with Equipment Suppliers  Suppliers to Hold Stock  Frequent Stock Reviews

 The Industry and in particular FSC unable to meet its debt commitments  Strategic Objective based on Volume and Quality Cane Supply, Efficient and Effective Processing, Revenue Maximisation.  Re-structure Company Financials so that FSC is able to meet its debt servicing and reduce Reliance on Government Funding  Improve the skill base of our People through Industry related “Classroom” and “On the Job” based Training  Staged Refurbishment as per the 10-Year Asset Management Plan

and Thank You