Slide 1: Investors Presentation 12M 2017 and Q4 2017
ROS AGRO PLC Investors Presentation 12M 2017 and Q4 2017 19 March 2018
Slide 2: Table of Contents
Table of Contents 1 12M 2017 and Q4 2017 (IFRS) Summary 3 2 Business Overview by division (IFRS) 10 3 Additional information 22 2
Slide 3: Summary Key Indicators (IFRS)
Section 1 Summary Key Indicators (IFRS) 12M 2017 and Q4 2017 vs 12M 2016 and Q4 2016
Slide 4: Net revenue, Adjusted EBITDA: Q4 2017 vs Q4 2016
Net revenue, Adjusted EBITDA: Actual Q4 2017 vs Actual Q4 2016 Comments Net revenue (IFRS) Actual Q4 2017 vs Actual Q4 2016 32,000 28,668 (4,241) Net Revenue decreased by RR 4,439 million (-15%): 27,000 (38) (2,268) 2,198 24,229 • Sugar sales decreased by RR 4,241 million (-31%) as a result of a dec
Slide 5: Net revenue, Adjusted EBITDA: 12M 2017 vs 12M 2016
Net revenue, Adjusted EBITDA: Actual 12M 2017 vs Actual 12M 2016 Comments Net revenue (IFRS) Actual 12M 2017 vs Actual 12M 2016 110,000 Net Revenue decreased by RR 5,199 million (-6%): 90,000 84,257 (6,854) (2,387) 2,661 (433) 1,814 79,058 • Sugar sales decreased by RR 6,854 million (-18%) due to su
Slide 6: Debt profile (as of 31 December 2017)
Debt profile (as of 31 December 2017) Comments Debt position and liquidity management Variance • Gross debt increased by RR 2,149 million (+5%) up to RR 46,651 million in RR million 31 December 2017 31 December 2016 • Net debt increased by RR 2,261 million (52%) to RR 6,604 million Units % • Major b
Slide 7: Statement of financial position: key changes
Statement of financial position: Key changes 31 December 2017 vs 31 December 2016 Comments Assets as of 31 December 2017 vs 31 December 2016 170,000 ASSETS • PPE & LT biological assets* increased by RR 10,999 million (RR +3,265 million in Agriculture, RR +4,731 million in Meat, 165,000 10,999 (925)
Slide 8: Cash Flows: Actual 12M 2017 vs Actual 12M 2016
Cash Flows: Actual 12M 2017 vs Actual 12M 2016 Cash Flows according to Management view (Not IFRS presentation)** RR m illion Actual Actual Variances Comments 12M 2017 12M 2016 Units % Cash flow s from operating activities In 12M 2017 cash and cash equivalents decreased by RR -1,891 million from RR 6
Slide 9: Overview of the key events and milestones of Q4 2017
Overview of the key events and milestones of Q4 2017 Overview of the key events and milestonesKeyofevents: the half year • Decline in the sugar price; Macroeconomics: • Profitability in meat-processing; • Average inflation rate in 12M 2017 was 2.52% (according to Rosstat). • Choice of Belgorod regio
Slide 10: Business Overview by division (IFRS)
Section 2 Business Overview by division (IFRS) 12M 2017 and Q4 2017 vs 12M 2016 and Q4 2016
Slide 11: Sugar: Key indicators Q4 2017 vs Q4 2016
Sugar Key indicators Actual Q4 2017 vs Actual Q4 2016 (IFRS) Comments Sugar: sales, Adjusted EBITDA and Adjusted EBITDA margin 30% Sales (RR -4,241 million, -31%): 13,634 14,000 27% • Sugar sales revenue decreased by RR 3,711 million due to sales price decreased by 27% and sales volume decreased by
Slide 12: Sugar: Key indicators 12M 2017 vs 12M 2016
Sugar Key indicators Actual 12M 2017 vs Actual 12M 2016 (IFRS) Comments Sugar: sales, Adjusted EBITDA and Adjusted EBITDA 37,240 margin 40% Sales (RR -6,854 million, -18%): 35,000 • Sugar sales revenue decreased by RR 6,667 million due to sales price decreased by 23%. Sales 30,386 volume increased b
Slide 13: Agriculture: Key indicators Q4 2017 vs Q4 2016
Agriculture Key indicators Actual Q4 2017 vs Actual Q4 2016 (IFRS) Comments Agriculture: sales, Adjusted EBITDA and Adjusted 12,976 EBITDA margin Sales (RR -2,268 million, -17%): • the major positive factor is higher sales of wheat in Q4 2017 vs 2016; 12,000 30% 35% 10,709 • the major negative facto
Slide 14: Agriculture: Key indicators 12M 2017 vs 12M 2016
Agriculture Key indicators Actual 12M 2017 vs Actual 12M 2016 (IFRS) Comments Agriculture: sales, Adjusted EBITDA and Adjusted 21,155 EBITDA margin 50% Sales (RR -2,387 million, -11%): 18,768 20,000 • The major positive factor is higher sales volume of wheat in 2017 vs 2016. 40% • The major negative
Slide 15: Agriculture: production volume, harvest yield, crops balance
Agriculture Key indicators Actual 12M 2017 vs Actual 12M 2016 (IFRS) Agriculture: production volume, harvest yield, crops balance Production volume, thousand tons Harvest yield, tn/ha Crops balance, thousand tons Actual Actual Variances Actual Actual Variances Variances Item 31 Dec 31 Dec 12M 12M 12
Slide 16: Meat: Key indicators Q4 2017 vs Q4 2016
Meat Key indicators Actual Q4 2017 vs Actual Q4 2016 (IFRS) Comments Meat: sales, Adjusted EBITDA and Adjusted EBITDA 6,000 margin 40% Sales (RR -38 million, -1%): 5,359 5,321 • a decrease in sales volume of livestock pigs by 15 ths tn or 56%, that was partly compensated by 33% 5,000 an increase in
Slide 17: Meat: Key indicators 12M 2017 vs 12M 2016
Meat Key indicators Actual 12M 2017 vs Actual 12M 2016 (IFRS) Comments Meat: sales, Adjusted EBITDA and Adjusted EBITDA margin 20,512 60% Sales (RR +2,661 million, +15%): 20,000 17,851 • an increase in sales volume of processed pork by 32 ths tn or 38%. Overall sales volume 50% increased due to an i
Slide 18: Oil & Fats: Key indicators Q4 2017 vs Q4 2016
Oil & Fats Key indicators Actual Q4 2017 vs Actual Q4 2016 (IFRS) Comments Oil & Fats: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR -91 million, -2%: EZHK RR -464 million, -16%; SAPP RR +515 million, 20%; Far East RR 20% 5,304 5,213 +178 million, +19% and Eliminations RR +710 million)
Slide 19: Oil & Fats: volumes and prices Q4
Oil & Fats Key indicators Actual Q4 2017 vs Actual Q4 2016 (IFRS) Comments Mayonnaise, margarine and bottled oil: volume and prices (excl. 30 VAT) Sales and prices in Oil & Fats: 80.2 25 79.2 • sales volume of mayonnaise decreased by 10 ths tn (-40%) with 5% increase in price; 25 79.5 thousand ruble
Slide 20: Oil & Fats: Key indicators 12M 2017 vs 12M 2016
Oil & Fats Key indicators Actual 12M 2017 vs Actual 12M 2016 (IFRS) Comments Oil & Fats: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR -433 million, -2%: EZHK RR -1,369 million, -14%; SAPP RR -1,275 million, -12%; Far East 19,864 19,430 5% RR +502 million, +17% and Eliminations RR +1,7
Slide 21: Oil & Fats: volumes and prices 12M
Oil & Fats Key indicators Actual 12M 2017 vs Actual 12M 2016 (IFRS) Comments Mayonnaise, margarine and bottled oil: volume and prices 77 (excl. VAT) 85 80 74 Sales and prices in Oil & Fats: • sales volume of mayonnaise decreased by 19 ths tn (-24%) with 5% increase in price; 70 80.5 80 59 78.1 thous
Slide 22: Additional information
Section 3 Additional information
Slide 23: Statement of Comprehensive income (IFRS)
Statement of Comprehensive income (IFRS) ROS AGRO PLC Actual 12M 2016 Variances Description Actual 12M 2017 (*) Units % Sales 79,058 84,257 (5,199) (6) Net gain/ (loss) on revaluation of biological assets and (2,976) 48 (3,024) (6,278) agricultural produce Cost of sales (58,116) (58,916) 800 1 Net g
Slide 24: Adjusted EBITDA 12M 2017 (IFRS) Breakdown by divisions
Adjusted EBITDA 12M 2017 (IFRS) Breakdown by divisions ROS AGRO PLC RR m illion 12M 2017 Sugar Meat Agriculture Oil and Fat Other Elim ination Total Sales 30,386 20,512 18,768 19,430 118 (10,156) 79,058 Net gain / (loss) on revaluation of biological assets and agricultural produce - (319) (862) - -
Slide 25: Adjusted EBITDA 12M 2016 (IFRS) Breakdown by divisions
Adjusted EBITDA 12M 2016 (IFRS) Breakdown by divisions ROS AGRO PLC RR m illion 12M 2016 Sugar Meat Agriculture Oil and Fat Other Elim ination Total Sales 37,240 17,851 21,155 19,864 95 (11,948) 84,257 Net gain/ (loss) on revaluation of biological assets and agricultural produce - 146 69 - - (167) 4
Slide 26: Statement of cash flows (IFRS)
Statement of cash flows (IFRS) ROS AGRO PLC RR m illion Actual Actual Variances 12M 2017 12M 2016 Units % Cash flow s from operating activities Profit before incom e tax 5,981 14,212 (8,231) (58) Adjustments for non-cash and non-operating (income)/expenses, net: Depreciation and amortization 7,155 5
Slide 27: Statement of cash flows (IFRS) - continuance
Statement of cash flows (IFRS) - continuance ROS AGRO PLC RR m illion Actual Actual Variances 12M 2017 12M 2016 Units % Cash flow s from investing activities Purchases of property, plant and equipment (16,685) (16,643) (42) (0) Purchases of other intangible assets (514) (275) (239) (87) Proceeds fro
Slide 28: Statement of cash flows according to Management view
Statement of cash flows according to Management view (Not IFRS presentation) ROS AGRO PLC RR m illion Actual Actual Variances 12M 2017 12M 2016 Units % Cash flow s from operating activities Profit before incom e tax 5,981 13,943 (7,962) (57) Adjustments for non-cash and non-operating (income)/expens
Slide 29: Statement of cash flows according to Management view - continuance
Statement of cash flows according to Management view (Not IFRS presentation) – continuance ROS AGRO PLC RR m illion Actual Actual Variances 12M 2017 12M 2016 Units % Cash flow s from investing activities - - (*) Including in net cash Purchases of property, plant and equipment (16,685) (16,643) (42)
Slide 30: Statement of financial position (IFRS)
Statement of financial position (IFRS) ROS AGRO PLC RR m illion 31 December 31 December Variances 2017 2016 Units % ASSETS Current assets Cash and cash equivalents 4,860 6,752 (1,891) (28) Restricted cash 0 0.04 0 8 Short-term investments 18,458 17,230 1,228 7 Trade and other receivables 3,196 4,608
Slide 31: Statement of financial position (IFRS) - continuance
Statement of financial position (IFRS) - continuance ROS AGRO PLC RR m illion 31 December 31 December Variances 2017 2016 Units % Liabilities and EQUITY Current liabilities Short-term borrow ings 8,864 11,704 (2,841) (24) Trade and other payables 6,773 6,989 (216) (3) Current income tax payable 64 9
Slide 32: Average FX rate, USD/RUR
Average FX rate, USD/RUR Ruble's exchange rate for 2016 77.93 77.33 70.42 66.68 64.56 64.31 65.84 65.22 64.94 64.34 62.09 62.62 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 USD/RUB max min trendline 32