Our Plan for Growth

Hywel Cook, General Manager Business Development

MSF Sugar Limited – At a Glance • Operate 4 sugar mills - total crushing capacity of 4.7 million tonnes of cane.

• Sugar Production per annum - around 600,000 tonnes.

• Australia’s largest grower of sugar cane - approximately 650,000 tonnes.

• 18.1 per cent economic interest in Sugar Terminals Limited.

• Employ nearly 740 people of who around 500 are full-time.

• 630 growers supply our mills.

• Direct output into the regional Queensland economy - approximately $275 million per annum

– mostly generated in Far North Queensland.

• Wholly owned by Mitr Phol Sugar Corporation, the world’s 4th largest sugar company

Maryborough Mill Mulgrave Mill Tableland Mill South Johnstone Mill

About Mitr Phol

Bio-fertilizer

Ethanol Molasses

Bio Power

Sugarcane

Sugar and syrup products

Wood substitute material Bagasse

From Waste to Value Business Model

Mitr Phol is transforming its business - From a raw sugar producer to many products from cane

Evolving our Sugar Business More products from cane Broaden the revenue base

Less reliance on the raw sugar price

Step 1 - Sustainable cane supply

Grower Relations Real Choice in Marketing • All growers who supply

MSF Sugar have marketing choice from the 2017 season onwards

Transparent marketing

• 100% of growers have choice of either MSF Sugar or QSL

• Happening NOW

Agronomy services • Leader in the State

Irrigation Efficient systems

• $15 million in upgrades in Maryborough and Tableland

BMP irrigation

• MSF Irrigation Managers in each MSF farming region

New technology • Low pressure pivots

• Sub-surface drip

• Soil moisture monitoring

• Remote sensing and operation

Farming Methods Best Management Practice • Controlled traffic, Minimum

tillage, Trash blanketing, Legume break crops

Achievements: • MSF Sugar regions leads

the State in adoption of sustainable farming systems.

• MSF Farms is the leader in accreditation of SmartCane BMP

We employ state of the art farming systems

Step 2 - Expand cane production

More Land Private Growers • Freehold purchases

• Leasing

• Consolidation

MSF Sugar • 1,200 Ha former MIS land

• 2,500 Ha in new farms

• Leasing

• Grower loans

More water Water storage • Application for National

Water Infrastructure Funding

• Expand areas for cane at Tableland and Maryborough

Water Delivery • Local management of

Maryborough and Tablelands, irrigation schemes actively sought

Water Management Laser levelling and drainage

Step 3 - Upgrade Mills

Increase Throughput, improve reliability and efficiency Tablelands - completed • $45 million to upgrade capacity and efficiency

• Install sugar crystallisation capability South Johnstone – under way • $23 million spent so far to upgrade capacity, reliability and efficiency.

• $37 million left as part of strategy

South Johnstone and Mulgrave cane rail transport – under way • $6.7 million to upgrade and automate locomotives

Maryborough – under way • $5 million to maintain reliability and improve efficiency

Step 4 - Reduce reliance on sugar price with cogeneration Currently we export a total of 12 MW of renewable electricity from our 4 sugar mills for 6 months/year

Plan is to increase this to over 100 MW for up to 30 weeks/year by installing new cogeneration plants at each mill. • Enough power to supply 50,000 homes in Queensland

• Investment: $400 million

• Timeframe for completion:

• Tablelands 2018

• South Johnstone: 2019

• Mulgrave: 2020

• Tableland Mill project was approved in August 1016

Tableland Mill Green Power Station….May 2017 to July 2018

Project size

• $75 million project • EPC contract for the main process

• Connecting via the existing Ergon connection

Construction to start in May 2017

• Some minor site earth works starting in October 2016

• Civil work in May 2017

Project will consistent of

• Boiler

• Turbine

• Generator

• Cooling tower

• High voltage electrical

• General process equipment

The EPC contract is Thyssenkrupp Industrial Solutions.

If you are looking to supply anything for the project please contact

• Contract Martin Readford

• Email: martin.readford@thyssenkrupp.com

• Phone: (03) 9207 5761

South Johnstone Mill Green Power Station and mill upgrade

This project is still in the feasibility study stage

• Plan for capex approval in mid 2017

• Construction over 3 years

• Total capital expenditure expected in the region of $150 million

Project Scope

• 35 MW green power station

− Deliver the electricity into the Powerlink grid

• Sugar mill upgrades

− Mill energy efficiency improvement

− Upgraded process control

− Improved process and milling equipment

Project delivery Staged for construction from late 2017 to mid

2020

Combination of a number of different projects

EPC contract for the green power station

Individual process vessel purchases

Process vessel installation contracts

Electrical and process control installation upgrade

General equipment purchases

Step 5 - Expand revenue base into bio products

A large investment in high-tech manufacturing.

• Circa $400 million investment – South Johnstone Mill

• Turn cane products into pre-cursors for high value products, eg:

• Yeasts

• Food additives

• Pharmaceuticals

• Cosmetics

What does this mean for the FNQ region

Vision is to invest $600 million in the region over the next decade

Turn our mills into bio refinery making green, sustainable products

• Sugar

• Electricity

• Functional food ingredients

− Edible Oils

− Fibre products

− Other sweeteners

High Tech precinct using agriculture as the basis for the future