Sugar Business and Renewable Energy for Sustainable Growth Coupled with Community and Social Prosperity
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Annual Report 2015 Buriram Sugar Public Company Limited Message from the Board of Directors (Mr. Prachuab Chaiyasan) (Mr. Anant Tangtongwechakit) Chairman of the Board of Director Chief Executive Officer A decade of the Company operation has been In addition, at the end of 2015, Office of the focusing on increasing productivity by adhered to “Sugar Cane and Sugar Board granted the Company 2 new Made in the Field” philosophy to achieve the highest licenses to establish 2 sugar factories in Chamni quality of sugarcane and sugar production. In fact, it is district, Buriram province and Nonnarai district, Surin not just a machinery that matter, but it is actually the Province with production capacity of 20,000 tons management and development of sugarcane agronomy. cane per day for each factory. It is a major milestone The Company pays attention from start, the selection of for future business growth and it is a response to rising sugarcane varieties, soil preparing, nurturing, as well as the demand of sugar in both domestic and abroad. plan for harvesting of sugarcane at the right time. Thus, these practices enabled the Company to increase The overall the turnover for the year 2015 cane volume from 1.77 million tons in 2013/14 to 1.95 was with a net profit of 272.34 million baht which million tons in 2014/15 crop year. The sugar extracted increased 36.03 million baht or 15 percent compared rate up to almost 119 kg/ton cane from 117 kg/ton to net profit of 236.31 million baht of the year 2014. cane the year earlier which was the second highest The key of the increased turnover was due to increasing in the country. In 2015/16 crop year, cane volume sugar and molasses from sugarcane from promoting the was expected to rise to 2.2 million tons. While, the expansion of sugarcane planting to the farmers and quality factory’s crushing capacity was increased from 17,000 control of raw materials that made the Company more tons / day in 2014/15 to 23,000 tons / day in the revenue. Although, the world market price of sugar has 2015/2016 to accommodate more cane. The expansion dropped steadily and hit the lowest in 7 years but the was funded by the issuance and offering of domestic Company was able to retain the ability to make a profit. debenture. 3 Annual Report 2015 Annual Report 2015 For the biomass power business, Buriram Power Co., Ltd.’s power plant (the second power plant of the group) has started selling electricity to PEA in April 2015 and has been promoted by the Board of Investment in the operation as well. And the total turnover of this business increased. In addition, to support raw material (bagasse) increasing in 2015, the Company has established Buriram Power Plus Co., Ltd. and Buriram Super Power Co., Ltd. to run the energy and electricity business in the future, including the establishment of Buriram Agro Energy Co., Ltd. to implement ethanol project which is now under study. Additionally, for social responsibility the Company believes that business development must be carried out together with social development. Through the year 2015 the Company focused on promoting the profession to raise the well-being of people in the community, such as the hand-woven mats of Sokdoo community and the hand-woven red-footed silk of Kubon community. The Company has made the strengthening and educational activities to develop and add value to their products, as well as purchase those from the community to be made for the Company to deliver as presents in the New Year and other occasions. The Company will carry on social works to gain acceptance and trust from communities and society. Finally, on behalf of the Board of Directors, we would like to extend our sincere thanks to all cane farmers, shareholders, customers, suppliers, employees and all stakeholders for the support and being a part of the Company development to move ahead. The Company will continue adhering to the vision and mission to develop the sugar business and renewable energy for sustainable growth coupled with community and social prosperity. 4 Annual Report 2015 Buriram Sugar Public Company Limited Board of Director Mr. Prachuab Chaiyasan Mr. Anant Tangtongwechakit Chairman of the Board of Director Chief Executive Officer, Director (Independent Director) and Chairman of the Risk Management and Chairman of the Audit Committee Committee Mr. Sirichai Sombutsiri Mrs. Seenual Tasanapant Independent Director Independent Director and Audit Committee and Audit Committee 5 Annual Report 2015 Annual Report 2015 Board of Director Mrs. Wanphen Punyaniran Mrs. Jirawan Pongpichitkul Director Director, Executive Director and Risk Management Director Miss Chittima Tangtrongwechakit Director, Executive Director and Risk Management Director Mr. Sarit Tangtrongwechakij Mr. Adisak Tangtrongweachakit Director, Executive Director Director, Executive Director and Risk Management Director and Risk Management Director 6 Annual Report 2015 Buriram Sugar Public Company Limited Financial Highlights Unit : Million Baht 3,954.03 4,295.86 5,385.67 6,762.11 Total Revenue Total Assets 2014 2015 2014 2015 236.31 272.35 3,397.26 4,635.93 Net Income Total Liabilities 2014 2015 2014 2015 1.71 2.18 1,988.40 2,126.17 D/E Ratio Shareholder's Equity 2014 2015 2014 2015 Sales by Geographic 31.76% 68.24 % Domestic Export 7 Annual Report 2015 Annual Report 2015 General Information of Company Buriram Sugar Public Co., Ltd. (BRR) Buriram Sugarcane Research and Business Type : Conduct business in investment by Development Co., Ltd. (BRD) holding shares in subsidiary Business Type : Research and development to companies (Holding company) which improve efficiency of cane are sugar manufacturing and growing and caring distribution business, by product Head Office/Factory : 237 Moo.2, Hinlekfai, Kumueang, from sugar business, for example, Buriram 31190 electricity business and fertilizer Bangkok Office : 128/77 Phayathai Plaza Building business, and support business 7th Fl., Phayathai Road, which is research and development Ratchathewi, Bangkok 10400 Public Company No. : 0107556000523 Telephone : 04-465-9020, 0-2216-5820-2 Head Office/Factory : 237 Moo.2, Hinlekfai, Kumueang, Fax : 04-465-9020, 0-2216-5823 Buriram 31190 Bangkok Office : 128/77-78 Phayathai Plaza Building 7th Fl., Phayathai Road,Ratchathewi, Buriram Energy Co., Ltd. (BEC) Bangkok 10400 Business Type : Biomass power plant Telephone : 04-465-9020, 0-2216-5820-2 Head Office/Factory : 289 Moo.2, Hinlekfai, Kumueang, Fax : 04-465-9020, 0-2216-5823 Buriram 31190 Website : www.buriramsugar.com Bangkok Office : 128/77 Phayathai Plaza Building 7th Fl., Phayathai Road, Ratchathewi, Bangkok 10400 Subsidiaries Telephone : 04-466-6368, 0-2216-5820-2 Fax : 04-466-6368, 0-2216-5823 Buriram Sugar Factory Co., Ltd. (BSF) Business Type : Manufacture and distribute sugar Buriram Power Co., Ltd. (BPC) Head Office/Factory : 237 Moo.2, Hinlekfai, Kumueang, Business Type : Biomass power plant Buriram 31190 Head Office/Factory : 284 Moo.2, Hinlekfai, Kumueang, Bangkok Office : 128/77 Phayathai Plaza Building Buriram 31190 7th Fl., Phayathai Road,Ratchathewi, Bangkok Office : 128/77 Phayathai Plaza Building Bangkok 10400 7th Fl., Phayathai Road, Ratchathewi, Telephone : 04-465-9020, 0-2216-5820-2 Bangkok 10400 Fax : 04-465-9020, 0-2216-5823 Telephone : 04-466-6368, 0-2216-5820-2 Fax : 04-466-6368, 0-2216-5823 8 Annual Report 2015 Buriram Sugar Public Company Limited Buriram Power Plus Co., Ltd (BPP) Buriram Agro Energy Co., Ltd (BAE) Business Type : Biomass power plant Business Type : Produce and distribute ethanol Head Office/Factory : 317 Moo.2 Hinlekfai, Head Office/Factory : 237 Moo.2, Hinlekfai, Kumueang, Buriram 31190 Kumueang, Buriram 31190 Bangkok Office : 128/80 Phayathai Plaza Building Bangkok Office : 128/77 Phayathai Plaza Building 7th Fl., Phayathai Road, 7th Fl., Phayathai Road, Ratchathewi, Bangkok 10400 Ratchathewi, Bangkok 10400 Telephone : 04-466-6368, 0-2216-5820-2 Telephone : 04-465-9020, 0-2216-5820-2 Fax : 04-466-6368, 0-2216-5823 Fax : 04-465-9020, 0-2216-5823 Buriram Super Power Co., Ltd (BSP) Business Type : Biomass power plant Head Office/Factory : 289 Moo.2 Hinlekfai, Kumueang, Buriram 31190 Bangkok Office : 128/80 Phayathai Plaza Building 7th Fl., Phayathai Road, Ratchathewi, Bangkok 10400 Telephone : 04-466-6368, 0-2216-5820-2 Fax : 04-466-6368, 0-2216-5823 Key Brand Fertilizer Co., Ltd. (KBF) Business Type : Produce and distribute organic fertilizer Head Office/Factory : 237 Moo.2 Hinlekfai, Kumueang, Buriram 31190 Bangkok Office : 128/77 Phayathai Plaza Building 7th Fl., Phayathai Road, Ratchathewi, Bangkok 10400 Telephone : 04-465-9020, 0-2216-5820-2 Fax : 04-465-9020, 0-2216-5823 9 Annual Report 2015 Annual Report 2015 Policy and Overview of Business Operation Overview of Business Operation Byproduct business Buriram Sugar Public Co., Ltd. and its subsidiaries 1. Buriram Energy Co., Ltd. (BEC) originally are one of the sugar industry pioneers of Northeastern Buriram Ethanol Co., Ltd. was registered on 2005 with region of Thailand which Mr. Vichien Tangtongwechakit 1 million Baht registered capital and increased registered initiated cane growing practices and encouraged farmers capital to 15,600,000 Baht in August 2006 for preparation to grow cane in Buriram Province. The group has of ethanol plant construction. Due to unfavorable operated an integrated business of raw sugar and brown circumstances during that period, the Company has sugar manufacturing and distribution both for domestic postponed its construction plan up until present. In 2010, consumption and export more than 50 years. The the Company changed its name to Buriram Energy Co., Ltd. Company uses byproducts of sugar manufacturing like and raised its registered capital to 135,600,000 Baht in 2011. bagasse, molasses and filter cake (press mud) to further advance the business utterly, including biomass power plant business, organic fertilizer and ethanol business.