Backdrop

Broad Framework

Strategic Objective

Challenges - Money

Challenges - Manpower

Challenges - Material

Sugarcane 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 Sugar)

Supplementary revenue from Molasses, Seasonal Electricity

Uncertainty of preferential access to EU Markets

“External” fund source to continue in Business

Sugarcane Industry as against Sugar Industry

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.

A

Increase in good quality cane yield

B

Highly efficient cane processing

C

Revenue from multiple

products/multiple buyers

Become a $1 billion Industry by 2020 Gross Balance Sheet in excess of $750 million (Excluding

Plantation)

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

Fiji 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