Rusagro Group · RUS:RAGR
Rusagro — ROS Agro — FY2016 Earnings Presentation
30 slides from Rusagro's earnings presentation, Mar 13, 2017
Slide 1: ROS AGRO PLC Investor Presentation 12M 2016 and Q4 2016
ROS AGRO PLC Investor Presentation 12M 2016 and Q4 2016 13 March 2017
Slide 2: Table of Contents
Table of Contents 1 Summary Key Indicators 12M 2016 and Q4 2016 (IFRS) 3 2 Business Overview by division (IFRS) 14 3 Additional information 20 2
Slide 3: Section 1: Summary Key Indicators (IFRS)
Section 1 Summary Key Indicators (IFRS) 12M 2016 and Q4 2016 vs 12M 2015 and Q4 2015
Slide 4: Net revenue, Adjusted EBITDA: Q4 2016 vs Q4 2015
Net revenue, Adjusted EBITDA: Actual Q4 2016 vs Actual Q4 2015 Comments Net revenue (IFRS) Actual Q4 2016 vs Actual Q4 2015 32,000 3,965 105 (1,859) 28,668 Net Revenue increased by RR 6,587 million (+30%): 28,000 673 3,703 • Sugar sales increased by RR 3,703 million (+37%) as a result of higher sale
Slide 5: Net revenue, Adjusted EBITDA: 12M 2016 vs 12M 2015
Net revenue, Adjusted EBITDA: Actual 12M 2016 vs Actual 12M 2015 Comments Net revenue (IFRS) Actual 12M 2016 vs Actual 12M 2015 90,000 2,612 (1,859) 6,944 84,257 Net Revenue increased by RR 11,817 million (+16%): • Sugar sales increased by RR 4,386 million (+13%) because of 10% increase in sales 80,
Slide 6: Debt profile (as of 31 December 2016)
Debt profile (as of 31 December 2016) Comments Debt position and liquidity management • Gross debt decreased by RR 5,821 million (-12%) to RR 44,503 million Variance • Net debt decreased by RR 11,230 million to RR -4,342 million. • 68% of total gross debt is subsidized. in RR million 31 December 201
Slide 7: Statement of financial position: key changes
Statement of financial position: Key changes 31 December 2016 vs 31 December 2015 Comments Assets as of 31 December 2016 vs 31 December 2015 155,000 152,973 ASSETS 2,550 1,057 19,159 (8,420) 8,049 663 • PPE & LT biological assets* increased by RR 19,159 million (RR +6,902 million in Agriculture, RR
Slide 8: Cash Flows: Actual 12M 2016 vs Actual 12M 2015
Cash Flows: Actual 12M 2016 vs Actual 12M 2015 Cash Flows according to Management view (Not IFRS presentation)**RR m illion Actual Actual Variances Comments 12M 2016 12M 2015 Units % Cash flow s from operating activities In 12M 2016 cash and cash equivalents increased by RR 2,350 million from RR 4,4
Slide 9: Section 2: Business Overview by division (IFRS)
Section 2 Business Overview by division (IFRS) 12M 2016 and Q4 2016 vs 12M 2015 and Q4 2015
Slide 10: Sugar: Key indicators Q4 2016
Sugar Key indicators Actual Q4 2016 vs Actual Q4 2015 (IFRS) Comments Sugar: sales, Adjusted EBITDA and Adjusted EBITDA margin 40% Sales (RR +3,703 million, +37%): 36% 13,634 14,000 • an increase in sugar sales volume (106 ths tn, +47%) partly compensated by a 12% decrease in 35% sugar sale prices;
Slide 11: Sugar: Key indicators 12M 2016
Sugar Key indicators Actual 12M 2016 vs Actual 12M 2015 (IFRS) Comments Sugar: sales, Adjusted EBITDA and Adjusted EBITDA margin 40,000 37,240 40% Sales (RR +4,386 million, +13%): • Sales of sugar increased because of 11% increase in sales volume, that was partly compensated 35,000 32,853 34% by 2%
Slide 12: Meat: Key indicators Q4 2016
Meat Key indicators Actual Q4 2016 vs Actual Q4 2015 (IFRS) Comments Meat: sales, Adjusted EBITDA and Adjusted EBITDA 6,000 margin 60% Sales (RR +673 million, +14 %): 5,359 • sales volume of livestock pigs decreased by 4 ths tn (-12%) from 30 ths tn to 26 ths tn; • sales volume of processed pork ros
Slide 13: Meat: Key indicators 12M 2016
Meat Key indicators Actual 12M 2016 vs Actual 12M 2015 (IFRS) Comments Meat: sales, Adjusted EBITDA and Adjusted EBITDA 20,000 18,117 margin 60% Sales (RR -266 million, -1 %): 17,851 • sales volume of livestock pigs decreased by 66 ths tn (-46%) from 141 ths tn to 76 ths tn; 50% • sales volume of pr
Slide 14: Agriculture: Key indicators Q4 2016
Agriculture Key indicators Actual Q4 2016 vs Actual Q4 2015 (IFRS) Comments Agriculture: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR +3,965 million, +44%): 60% The major positive factors are: 14,000 50% 12,976 • an increase in sales volume of sugar beet, wheat, soy and barley 50% The
Slide 15: Agriculture: Key indicators 12M 2016
Agriculture Key indicators Actual 12M 2016 vs Actual 12M 2015 (IFRS) Comments Agriculture: sales, Adjusted EBITDA and Adjusted EBITDA margin 21,155 60% Sales (RR +6,944 million, +49%): 21,000 The major positive factor is: 55% • an increase in sales volume of all crops except for pea. 18,000 The majo
Slide 16: Oil & Fats: Key indicators Q4 2016
Oil & Fats Key indicators Actual Q4 2016 vs Actual Q4 2015 (IFRS) Comments Oil & Fats: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR +105 million, +2%: EZHK RR +398 million, +16%; SAPP RR -657 million, -20%; Far East RR +277 million, +43% and Eliminations RR +87 million). 5,199 5,304 1
Slide 17: Oil & Fats Ekaterinburg: volume and prices Q4
Oil & Fats Key indicators Actual Q4 2016 vs Actual Q4 2015 (IFRS) Oil & Fats Ekaterinburg: volume and prices Comments 25 85 21 21 Sales and prices in Ekaterinburg fat plant (EZHK): 20 79.2 thousand rubles per ton • sales volume of mayonnaise increased by 3.3 ths tn (+15%) with 2% increase in price;
Slide 18: Oil & Fats: Key indicators 12M 2016
Oil & Fats Key indicators Actual 12M 2016 vs Actual 12M 2015 (IFRS) Comments Oil & Fats: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR +2,612 million, +15%: EZHK RR +1,095 million, +13%; SAPP RR +1,000 million, 19,864 +10%; Far East RR +971 million, +49% and Eliminations RR -454 millio
Slide 19: Oil & Fats Ekaterinburg: volume and prices 12M
Oil & Fats Key indicators Actual 12M 2016 vs Actual 12M 2015 (IFRS) Oil & Fats Ekaterinburg: volume and prices 80 77 74 Comments 66 78 70 65 76.7 thousand rubles per ton Sales and prices in Ekaterinburg fat plant (EZHK): 75.6 • sales volume of mayonnaise increased by 11 ths tn (+17%) with 5% increas
Slide 20: Section 3: Additional information
Section 3 Additional information
Slide 21: Statement of Comprehensive income (IFRS)
Statement of Comprehensive income (IFRS) ROS AGRO PLC RR m illion Actual 12M 2015 Variances Description Actual 12M 2016 (*) Units % Sales 84,257 72,439 11,817 16 Net gain on revaluation of biological assets and 48 2,041 (1,993) (98) agricultural produce Cost of sales (58,916) (43,271) (15,644) (36)
Slide 22: 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 / (Net loss) on revaluation of biological assets and agricultural produce - 146 69 - - (1
Slide 23: Adjusted EBITDA 12M 2015 (IFRS) Breakdown by divisions
Adjusted EBITDA 12M 2015 (IFRS) Breakdown by divisions ROS AGRO PLC RR m illion 12M 2015 Sugar Meat Agriculture Oil and Fat Other Elim ination Total Sales 32,853 18,117 14,211 17,252 42 (10,036) 72,439 Net gain / (Net loss) on revaluation of biological assets and agricultural produce - (304) 1,191 -
Slide 24: Statement of cash flows (IFRS)
Statement of cash flows (IFRS) ROS AGRO PLC RR m illion Actual Actual Variances 12M 2016 12M 2015 Units % Cash flow s from operating activities Profit before incom e tax 13,943 25,514 (11,571) (45) Adjustments for non-cash and non-operating (income)/expenses, net: Depreciation and amortization 5,820
Slide 25: Statement of cash flows (IFRS) - continuance
Statement of cash flows (IFRS) - continuance ROS AGRO PLC RR m illion Actual Actual Variances 12M 2016 12M 2015 Units % Cash flow s from investing activities Purchases of property, plant and equipment (16,643) (11,423) (5,219) (46) Purchases of other intangible assets (275) (257) (19) (7) Proceeds f
Slide 26: 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 2016 12M 2015 Units % Cash flow s from operating activities Profit before incom e tax 13,943 25,514 (11,571) (45) Adjustments for non-cash and non-operating (income)/expe
Slide 27: 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 2016 12M 2015 Units % Cash flow s from investing activities - - Purchases of property, plant and equipment (16,643) (11,423) (5,219) (46) (*) Including in n
Slide 28: Statement of financial position (IFRS)
Statement of financial position (IFRS) ROS AGRO PLC RR m illion 31 December 31 December Variances 2016 2015 Units % ASSETS Current assets Cash and cash equivalents 6,752 4,402 2,350 53 Restricted cash 0 - 0 - Short-term investments 17,230 29,981 (12,751) (43) Trade and other receivables 4,608 3,504
Slide 29: Statement of financial position (IFRS) - continuance
Statement of financial position (IFRS) - continuance ROS AGRO PLC RR m illion 31 December 31 December Variances 2016 2015 Units % Liabilities and EQUITY Current liabilities Short-term borrow ings 11,704 25,860 (14,156) (55) Trade and other payables 6,989 3,737 3,252 87 Current income tax payable 99
Slide 30: Average FX rate, USD/RUR
Average FX rate, USD/RUR Ruble's exchange rate for 2015 66.78 69.70 65.42 65.15 65.03 64.52 60.36 63.25 57.18 54.45 53.22 50.47 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 USD/RUB max min trendline Ruble's exchange rate for 2016 77.93 77.33 70.42 66.68 64.56 6