Slide 1: Leveraging Ukraine's natural advantage in agriculture
Leveraging Ukraine’s natural advantage in agriculture C O M P A N Y P R E S E N T A T I O N
Slide 2: Disclaimer
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices 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, th
Slide 3: Kernel at a glance
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Kernel at a glance Sunflower oil Stock information EBITDA Exchange Warsaw Stock Exchange $178m ii #1 sunflower oil producer and exporter in Ukraine. Stock quote currency PLN ii 2.9 million to
Slide 4: Q1 FY2015 operations update
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Q1 FY2015 operations update Volume and tonnage Q1 FY2015 Q1 FY2014 y-o-y Grain sales, tons 1,220,855 884,701 38% Harvest update: ii Crop yields up 20-32% y-o-y, driven by operational improvem
Slide 5: Kernel at a glance
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Kernel at a glance 1 Own farming 2 Third party farmers 3 Origination 4 Silo storage 5 Sunflower seed processing plants 6 Grain export 7 Bottled sunflower oil 8 Export terminals www.kernel.ua Co
Slide 6: Asset map
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Asset map Kursk Voronezh Chernihiv Lutsk Sumy Belgorod Rivne Kyiv Zhytomyr Kharkiv Lviv Ternopil Poltava Cherkasy Khmelnytskyi Vinnytsia Ivano-Frankivsk Uzhhorod Volgograd Luhansk Kirovohrad
Slide 7: Sunflower Oil
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Sunflower Oil www.kernel.ua Company presentation November 2014 7
Slide 8: Our business model
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Our business model ii #1 oilseed crusher in Ukraine; total capacity of 2.9 million tons of sunflower Sunflower seed industrial Kernel’s sunflower oil export by seed per year. crushing capacit
Slide 9: FY2014 performance
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices FY2014 performance Sunflower oil sold in bulk Sunflower oil sold in bulk EBITDA Sunflower oil sold in bulk: (thousand tons) (USD/ton, %) ii Volumes down 12% y-o-y due to poor Q1 (low carry-ov
Slide 10: Grain and Infrastructure
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Grain and Infrastructure www.kernel.ua Company presentation November 2014 10
Slide 11: Our business model
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Our business model Kernel grain sales by crop Grain exports from Ukraine ii Top grain exporter from the Black Sea region, with a market share in (FY2012-FY2014) (2013/14) Ukraine of 9-12% and
Slide 12: FY2014 performance
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices FY2014 performance Grain sales Grain segment’s EBITDA Grain: (thousand tons) (USD/ton, %) ii 40% volume growth driven by an upsurge in exports from Russia (first full year 36.7 of operations
Slide 13: Farming
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Farming www.kernel.ua Company presentation November 2014 13
Slide 14: Our business model
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Our business model Kernel’s farmed acreage ii Large-scale crop production on 389,000 hectares of leasehold farmland in Ukraine. (thousand hectares) ii A crop mix based on four crops allows us
Slide 15: FY2014 performance
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices FY2014 performance Net crop yields Farming segment’s EBITDA contribution was negative (tons per hectare) in FY2014 due to: ii 8-34% y-o-y drops in crop prices. 7.1 7.2 ii Yields significantly
Slide 16: Operational improvements for FY2015
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Operational improvements for FY2015 Crop yield growth in FY2015, Key operational changes for crops in FY2015: y-o-y ii Shifting fertilizer application to autumn. ii Increasing fertilizer inte
Slide 17: Crop production cycle in Ukraine
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Crop production cycle in Ukraine FY2014 FY2015 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Corn Land preparation Fertilization Planting Pla
Slide 18: Strategy and Outlook
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Strategy and Outlook www.kernel.ua Company presentation November 2014 18
Slide 19: Strategy
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Strategy Group imperatives Strategic pillars Mid-term action plan Ultimate goal Focus on margins Consolidate the oilseed Geographic focus crushing industry in Ukraine Excellence Increase annu
Slide 20: FY2015 outlook
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices FY2015 outlook Sunflower oil ii Crush of 2.4-2.5 million tons of sunflower seed in FY2015 vs. 2.3 million tons in FY2014. ii Healthy margins. Grain and infrastructure ii Grain exports to incr
Slide 21: Financials
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Financials www.kernel.ua Company presentation November 2014 21
Slide 22: FY2014 results highlights
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices FY2014 results highlights USD million except ratios and EPS FY2014 FY2013 y-o-y Kernel’s debt vs. working capital P&L highlights (USD million) Revenue 2,393.3 2,796.8 (14.4%) 82 EBITDA(1) 223
Slide 23: Segment results summary
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Segment results summary Revenue, USD million EBITDA, USD million EBITDA margin Volumes, thousand tons FY2014 FY2013 y-o-y FY2014 FY2013 y-o-y FY2014 FY2013 FY2014 FY2013 y-o-y Sunflower oil S
Slide 24: Balance sheet
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices Balance sheet Balance sheet highlights USD million FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Invested capital Cash & cash equivalents 6.4 25.3 88.5 129.3 59.5 115.9 82.5
Slide 25: P&L and cash flow
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices P&L and cash flow P&L highlights USD million except ratios and EPS FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Revenue 215.2 350.4 663.1 1,047.1 1,020.5 1,899.1 2,071.8 2,7
Slide 26: IR contact
Kernel at Sunflower Grain and Strategy and a glance Oil Infrastructure Farming Outlook Financials Appendices IR contact Yuriy Kovalchuk Corporate Investment Director investor_relations@kernel.ua Yegor Samusenko Investor Relations Manager y.samusenko@kernel.ua Tel.: +38 044 461-88-01, ext. 70-88 3 Ta