2016 SunRice Update

Laurie Arthur, SunRice Chairman

Rob Gordon, SunRice CEO

6 – 9 June 2016

Agenda

• SunRice FY16 (C15)

guidance

• World markets

• Capital Restructure

• Your questions and

comments

2

FY16 Business performance

3

• FY16 (C15) results to be announced in

June 2016

• Challenging trading environment and

market conditions during the second half

of FY16

• Excellent domestic and international

consumer market sales demonstrate

SunRice’s ability to leverage brand

strength

• Subject to audit, strong financial

performance in line with last year

anticipated

• SunRice remains well positioned for the

future, but anticipates a more challenging

year in FY17

FY17 (C16) Outlook

• Challenging trading environment in world

rice markets

• Impacts in dairy industry likely to affect

domestic sales for CopRice

• Potential PNG issues continue to be closely

monitored, including:

- Exchange rate movements (Kina has

declined almost 20% against the US$

since Jan 2015)

- Government policy changes

- Overall macroeconomic outlook

• PNG Kina liquidity issues have the potential

to materially impact SunRice’s business in

PNG in FY17:

- E.G. A sudden Kina devaluation is likely

to considerably reduce trading margins

and reduce the intercompany receivable

from Trukai to SunRice

• Strong track record of accurate market

guidance for A and B Class

Shareholders

• Demonstrated ability to balance the

needs of both shareholder classes

since converting to a company in 2005

and listing on the NSX in 2007

• Between FY12 (C11) and FY15 (C14):

- 110% increase in earnings per B

Class Share and 72% dividend

appreciation

- 44% increase in paddy price paid

per tonne for Reiziq

• Board continues to pursue strategies to

increase value to all shareholders

Track record of delivery

5

6

C16 Global pricing – Medium Grain

Source: SunRice

• Japonica surpluses still exist in

China and Taiwan

• US MG prices have halved since

mid 2014

• Spot paddy cash prices continue to

trade at lowest level of the US

marketing year

• Drought-breaking rains are boosting

anticipated planted area

• US growers are also being required

to move or sell old stock by storage

sheds and banks

• April-May paddy sales pricing

estimated to be $60-75 per tonne

under the Californian

cost of production

• Egypt has switched from exporting

to importing ahead of Ramadan

$300.00

$350.00

$400.00

$450.00

$500.00

$550.00

$600.00

$650.00

7/30/2014

8/29/2014

9/28/2014

10/28/2014

11/27/2014

12/27/2014

1/26/2015

2/25/2015

3/27/2015

4/26/2015

5/26/2015

6/25/2015

7/25/2015

8/24/2015

9/23/2015

10/23/2015

11/22/2015

12/22/2015

1/21/2016

2/20/2016

3/21/2016

4/20/2016

5/20/2016

Cash Trading Date

California21-Month Cash Paddy Prices

Cash Rice Network / Cal Rice Exchange

2014 Crop USA 2015 Crop USA

2013 Crop USA

$U

SD

pe

r to

nn

e

Note: Cash price does not include storage and drying costs,

which are deducted from this amount

7

C16 Global pricing – Long Grain

• 2016 Thai rice export projections

revised from 10 to 9 million

metric tonnes due to drought

• Prices have increased due to

dwindling stockpiles and the

effects of El Niño

• 74 of the country’s 77 provinces

are drought-affected, with dry

conditions set to continue until

the monsoon season starts

• In April, paddy supplies tightened

as exporters covered a sale of

130,000 metric tonnes to China

• Bullish sentiment encouraged by

news that off-season crop

production is expected to be

reduced by up to 60%

*Creed Thai LG 100% B

*Selling prices listed are in U.S. dollars per tonne and for

Finished Product tonnes (includes costs for milling and yield

losses, packing, distribution and administrative charges)

0

100

200

300

400

500

600

2013 J

an

2013 F

eb

2013 M

ar

2013 A

pr

2013 M

ay

2013 J

un

2013 J

ul

2013 A

ug

2013 S

ep

2013 O

ct

2013 N

ov

2013 D

ec

2014 J

an

2014 F

eb

2014 M

ar

2014 A

pr

2014 M

ay

2014 J

un

2014 J

ul

2014 A

ug

2014 S

ep

2014 O

ct

2014 N

ov

2014 D

ec

2015 J

an

2015 F

eb

2015 M

ar

2015 A

pr

2015 M

ay

2015 J

un

2015 J

ul

2015 A

ug

2015 S

ep

2015 O

ct

2015 N

ov

2015 D

ec

2016 J

an

2016 F

eb

2016 M

ar

2016 A

pr

2016 M

ay

Thai Long Grain Pricing - US $ / mt

Thai Long Grain

8

World markets outlook

• A more challenging trading

environment, particularly for Medium

Grain as prices come off

• Conversely, Thailand’s drought is

driving Long Grain prices up

• Lower Riverina production has

resulted in intensified global sourcing

activities for SunRice

• Riverina paddy pricing will continue

to be impacted by global supply and

demand mechanics and SunRice’s

business needs

9

Capital Restructure update

• The Capital Restructure is designed to

equip SunRice and all growers and

shareholders for the future, enabling the

company to:

- Invest for growth;

- Better manage business risk; and

- Have greater resilience to benefit all

growers and shareholders

• Significant time and resources have been

invested to develop a structure that enables

SunRice to realise these outcomes while

preserving both:

- Existing grower shareholder control;

and

- Existing economic rights of SunRice B

Class investor shareholders

10

Capital Restructure update

• Timing is being impacted by developments with

a joint venture (JV) partner, which recently

decided SunRice’s proposed Capital

Restructure justifies its own review of JV

arrangements

• SunRice is working cooperatively on the review,

which is in no way impacting on the JV’s trading

operations

• We will be progressing with the Capital

Restructure once the JV issue is resolved

• The timetable for any vote will now also take

into account the need to re-establish the strong

support received from growers and

shareholders to date, particularly in light of

recent developments in the dairy industry

• The Board remains firmly committed to the

success of the Capital Restructure and its ability

to deliver a strong future for SunRice and all

shareholders

QUESTIONS