Kernel Holding S.a. · GPW:KER
Kernel — Q1 FY2016 Earnings Presentation
27 slides from Kernel's earnings presentation, November 2015
Slide 1: Q1 FY2016 Results
KERNEL Q1 FY2016 RESULTS
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: Q1 FY2016 highlights
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Q1 FY2016 highlights Key highlights: USD million except ratios and EPS Q1 FY2016 Q1 FY2015 y-o-y ii Revenue decreased 35% y-o-y to USD 377.7 million in Q1 FY2016, as sales volumes P&L highlights declined 22-24% y-
Slide 4: Sunflower oil in Q1 FY2016
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Sunflower oil in Q1 FY2016 Sunflower oil sales in bulk Sunflower oil sold in bulk EBITDA Sunflower oil sold in bulk (thousand tons) (USD per ton) 278 ii Oilseed crush was down 17% y-o-y to 417,902 tons in Q1 FY201
Slide 5: Grain and infrastructure in Q1 FY2016
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Grain and infrastructure in Q1 FY2016 Grain segment EBITDA Grain sales (USD per ton) Grain (tons) ii Grain sales decreased 24% y-o-y to 927,446 tons in Q1 FY2016, as weak the international pricing environment and
Slide 6: Farming in Q1 FY2016
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Farming in Q1 FY2016 Farming Net crop yields (tons per hectare) ii The segment’s revenue amounted to USD 56.2 million in Q1 FY2016, with EBITDA at USD 16.0 million in Q1 FY2016, compared to USD 10.7 million a FY20
Slide 7: Q1 FY2016 segment results
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Q1 FY2016 segment results Revenue, USD million EBITDA, USD million EBITDA margin, % Volumes, thousand tons Q1 FY2016 Q1 FY2015 y-o-y Q1 FY2016 Q1 FY2015 y-o-y Q1 FY2016 Q1 FY2015 Q1 FY2016 Q1 FY2015 y-o-y Sunflowe
Slide 8: Q1 FY2016 balance sheet
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Q1 FY2016 balance sheet Balance sheet highlights USD million 30 Sep 2015 30 June 2015 30 Sep 2014 Invested capital Cash & cash equivalents 76.1 129.1 52.5 Net trade accounts receivable 57.9 56.1 72.6 Inventory 340
Slide 9: Q1 FY2016 P&L and cash flow
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Q1 FY2016 P&L and cash flow P&L highlights USD million except ratios and EPS Q1 FY2016 Q1 FY2015 Revenue 377.7 579.2 Net IAS 41 gain(1) 2.1 (1.6) Gross profit 73.5 111.5 EBITDA 55.1 80.5 EBIT 39.6 60.4 Net financi
Slide 10: FY2016 outlook
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials FY2016 outlook Sunflower oil ii The combination of a 5% capacity increase at our plants and a recent agreement to toll 200,000 tons of capacity at a third-party plant will allow us to increase our crushing volume
Slide 11: Kernel at a glance
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Kernel at a glance Sunflower oil EBITDA Stock information $213m Exchange Warsaw Stock Exchange ii #1 sunflower oil producer and exporter in Ukraine. Stock quote currency PLN ii 3.0 million tons/year sunflower seed
Slide 12: Our business model
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Our business model 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 Company presentation Nov
Slide 13: Asset map
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Asset map Kursk Voronezh Chernihiv Lutsk Sumy Belgorod Rivne Kyiv Zhytomyr Kharkiv Lviv Ternopil Poltava Cherkasy Khmelnytskyi Vinnytsia Ivano-Frankivsk Uzhhorod Volgograd Luhansk Kirovohrad Dnipropetrovsk Cherniv
Slide 14: Sunflower Oil
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Sunflower Oil www.kernel.ua Company presentation November 2015 14
Slide 15: Our business model
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Our business model ii #1 oilseed crusher in Ukraine; total capacity of 3.0 million tons of sunflower Sunflower seed industrial Kernel’s sunflower oil export by destination crushing capacity in Ukraine (FY2015) see
Slide 16: Sunflower oil in FY2015
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Sunflower oil in FY2015 Sunflower oil sold in bulk Sunflower oil sold in bulk EBITDA Sunflower oil sold in bulk (thousand tons) (USD/ton, %) ii 12% y-o-y growth in the volumes of sunflower oil sold in bulk reflect
Slide 17: Grain and Infrastructure
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Grain and Infrastructure www.kernel.ua Company presentation November 2015 17
Slide 18: Our business model
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Our business model Ukraine’s grain and oilseed production Russia’s grain and oilseed production ii Top grain exporter from the Black Sea region, with a market share in (million tons) (million tons) Ukraine of 9-12
Slide 19: Grain and infrastructure in FY2015
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Grain and infrastructure in FY2015 Grain sales Grain segment’s EBITDA Grain export: (thousand tons) (USD/ton, %) ii The combination of a 400,000-ton increase in our own grain and oilseed 37 4,744 production, and a
Slide 20: Farming
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Farming www.kernel.ua Company presentation November 2015 20
Slide 21: Our business model
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Our business model Kernel’s farmed acreage crop mix ii Large-scale crop production on 390,000 hectares of leasehold farmland in Ukraine. 8% 8% 7% ii A crop mix based on four crops allows us to focus on profits and
Slide 22: Farming in FY2015
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Farming in FY2015 Acreage harvested Farming segment EBITDA Farming: (thousand hectares) (USD/hectare, %) ii Our total grain and oilseed tonnage was up 31% y-o-y to 1.8 million in 345 FY2015, as improvements in our
Slide 23: Crop production cycle in Ukraine
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials 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 Plant protection Harvesti
Slide 24: Financials
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Financials www.kernel.ua Company presentation November 2015 24
Slide 25: Balance sheet
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials Balance sheet Balance sheet highlights USD million FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Q1 FY2016 Invested capital Cash & cash equivalents 6.4 25.3 88.5 129.3 59.5 115.9 82.5 78.8
Slide 26: P&L and cash flow
Kernel at Sunflower Grain and Q1 FY2016 a glance Oil Infrastructure Farming Financials P&L and cash flow P&L highlights USD million except ratios and EPS FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Revenue 215.2 350.4 663.1 1,047.1 1,020.5 1,899.1 2,071.8 2,796.8 2,393.3 2,
Slide 27: IR contact
IR contact Yuriy Kovalchuk Yegor Samusenko Corporate Investment Director Investor Relations Manager ir@kernel.ua y.samusenko@kernel.ua Tel.: +38 044 461-88-01, ext. 70-88 3 Tarasa Shevchenka Lane, Kyiv, Ukraine, 01001 Investor calendar ii Annual General Meeting of Shareholders 10 December 2015 ii Q2