Kernel Holding S.a. · GPW:KER
Kernel — Q1 FY2022 Earnings Presentation
25 slides from Kernel's earnings presentation, November 2021
Slide 1: Kernel Holding S.A. Q1 FY2022 results and company presentation
Kernel Holding S.A. Q1 FY2022 results and company presentation November 2021
Slide 2: Disclaimer
Disclaimer The information in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither th
Slide 3: Content
Content 1. Q1 FY2022 results and outlook 2. Kernel today 3. Mid-term strategy 4. Financials Appendices
Slide 4: 1.1 Q1 FY2022 highlights
Q1 FY2022 results and results and Mid-term outlook outlook Kernel today strategy Financials 1.1 Q1 FY2022 highlights ◼ Revenue 43% y-o-y to US$ 1,343m, driven mainly by stronger sunflower oil US$ million except EPS Q1 FY2021 Q1 FY2022 y-o-y and grains sales prices Income statement highlights Reven
Slide 5: 1.2 Segment results
Q1 FY2022 results and results and Mid-term outlook outlook Kernel today strategy Financials 1.2 Segment results Segment volumes, m tons EBITDA margin EBITDA, US$ m US$ / t of oil sold 100 Oilseed 3.1 3.2 3.4 3.2 3.0 152 Processing 67 54 109 1.4 1.6 1.5 41 1.4 1.3 77 31 56 40 FY18 FY19 FY20 FY21 LTM
Slide 6: 1.3 Segments results
Q1 FY2022 resultsand results and Mid-term outlook outlook Kernel today strategy Financials 1.3 Segments results Oilseed Processing segment Segments results Revenue, US$ m EBITDA, US$ m Volume, k t EBITDA margin, US$ / t ◼ 1 2 EBITDA margin 36% y-o-y to US$ 66 per ton of oil sold driven by Q1 Q1 Q1
Slide 7: 1.4 Outlook for FY2022
Q1 FY2022 results and results and Mid-term outlook outlook Kernel today strategy Financials 1.4 Outlook for FY2022 ◼ Record 16.8m tons harvest of sunflower seeds is expected in Ukraine this season Oilseed ◼ We target to process 3.8m tons of oilseeds in FY2022, up 18% y-o-y, accounting for Processing
Slide 8: Content
Content 1. Q1 FY2022 results and outlook 2. Kernel today 3. Mid-term strategy 4. Financials Appendices
Slide 9: 2.1 Kernel today
Q1 FY2022 results and Mid-term outlook Kernel Kernel today today strategy Financials 2.1 Kernel today Oilseed Processing segment FY2018 FY2019 FY2020 FY2021 LTM Key financials ◼ #1 sunflower oil producer (7% of global production) and EBITDA 1, US$ million Revenue US$ m 2,403 3,960 4,107 5,647 6,050
Slide 10: 2.2 What we do
Q1 FY2022 results and Mid-term outlook Kernel Kernel today today strategy Financials 2.2 What we do 6 Oilseed processing 1 Farming ◼ #1 sunflower oil producer (7% of global production) and exporter (12% ◼ #1 crop producer in Ukraine, 506k ha of of global export) in the world leasehold farmland ◼ 9 o
Slide 11: 2.3 Efficient and well-invested asset base
Q1 FY2022 results and Mid-term outlook Kernel Kernel today today strategy Financials 2.3 Efficient and well-invested asset base Sunflower seed crushing capacity, thousand tons per year Poltava Grain transshipment capacity, thousand tons per year 475 Vovchansk 356 Starokostiantyniv Prykolotne 1,000 1
Slide 12: 2.4 Oilseed Processing segment
Q1 FY2022 results and Mid-term outlook Kernel Kernel today today strategy Financials 2.4 Oilseed Processing segment LTM EBITDA Segment performance Profitability drivers and FY2022 outlook Segment volumes ◼ Lower oilseed processing volumes: million tons 1 Ukraine sunflower seed harvest – Poor 13.6m t
Slide 13: 2.5 Infrastructure and Trading segment
Q1 FY2022 results and Mid-term outlook Kernel Kernel today today strategy Financials 2.5 Infrastructure and Trading segment LTM EBITDA Segment performance Profitability drivers and FY2022 outlook Segment volumes Grain supply in Ukraine million tons ◼ Record grain export volume from Ukraine 1 million
Slide 14: 2.6 Farming segment
Q1 FY2022 results and Mid-term outlook Kernel Kernel today today strategy Financials 2.6 Farming segment LTM EBITDA Segment performance Profitability drivers and FY2022 outlook Kernel’s key crop production ◼ 499k ha harvested in FY2022 1 Ukraine corn and wheat prices US$ per ton, FOB-Black Sea 596 5
Slide 15: 2.7 Credit highlights
Q1 FY2022 results and Mid-term outlook Kernel Kernel today today strategy Financials 2.7 Credit highlights Credit portfolio as of 30 September 2021, US$ m Kernel Eurobonds mid-YTM, % Amount 2022 8.75% bond 2024 6.5% bond 2027 6.75% bond Undrawn facilities Interest rate Maturity 18% outstanding 16% 1
Slide 16: Content
Content 1. Q1 FY2022 results and outlook 2. Kernel today 3. Mid-term strategy 4. Financials Appendices
Slide 17: 3.1 Kernel's mid-term strategy
Q1 FY2022 results and Mid-term Mid-term outlook Kernel today strategy strategy Financials 3.1 Kernel’s mid-term strategy We aim to sustainably increase the scale and efficiency of our low-cost business system to export annually 20 million tons of soft commodities from Ukraine by strategic acquisitio
Slide 18: Content
Content 1. Q1 FY2022 results and outlook 2. Kernel today 3. Mid-term strategy 4. Financials Appendices
Slide 19: 4.1 Consolidated statement of profit or loss
Q1 FY2022 results and Mid-term outlook Kernel today strategy Financials Financials 4.1 Consolidated statement of profit or loss US$ million, except ratios and EPS FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 LTM Revenue 215 350 663 1,047 1,020 1,899 2,072 2,797 2,3
Slide 20: 4.2 Balance sheet
Q1 FY2022 results and Mid-term outlook Kernel today strategy Financials Financials 4.2 Balance sheet Balance sheet highlights 30 Sep US$ million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 2021 Cash & cash equivalents 6 25 89 129 59 116 83 79 65 129 60 143 132 77
Slide 21: 4.3 Cash flow statement
Q1 FY2022 results and Mid-term outlook Kernel today strategy Financials Financials 4.3 Cash flow statement US$ million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 LTM EBITDA 17 46 123 190 190 310 319 288 223 397 346 319 223 346 443 929 954 Finance cost paid (9) (1
Slide 22: IR contact and investor calendar
IR contact and investor calendar Michael Iavorskyi Investor Relations Manager ir@kernel.ua Tel.: +38 (044) 461 88 01, ex. 7275 3 Tarasa Shevchenka Lane, Kyiv Ukraine, 01001 Investor calendar Annual general shareholders’ meeting 10 December 2021 Q2 FY2022 Operations Update 21 January 2022 H1 FY2022 F
Slide 23: Content
Content 1. Q1 FY2022 results and outlook 2. Kernel today 3. Mid-term strategy 4. Financials Appendices
Slide 24: A1. Markets and business environment
A1. Markets and business environment Oilseed Processing Infrastructure and Trading Farming Global production of vegetable oils Global production and export of Global grain exports Top grain exporting countries Grain yields in MY2020/21 million tons sunflower oil million tons million tons t / ha mill
Slide 25: A2. Kernel sustainability approach
A2. Kernel sustainability approach We aim to unlock the Ukrainian food production potential to feed the growing world population in a sustainable manner Achievements Key non-financial KPIs Environment FY17 FY18 FY19 FY20 FY21 ◼ Proper set of internal policies and procedures to drive sustainable deve