Kernel Holding S.a. · GPW:KER
Kernel — FY2018 Earnings Presentation
27 slides from Kernel's earnings presentation, Oct 22, 2018
Slide 1: Kernel Holding S.A. FY2018 results and company presentation
Kernel Holding S.A. FY2018 results and company presentation 22 October 2018
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: 1. FY2018 results
1. FY2018 results
Slide 4: 1.1 FY2018 highlights
Balanced Financials and FY2018 results FY2018 results Kernel today growth strategy outlook 1.1 FY2018 highlights ◼ Revenue totaled US$ 2.4bn in FY2018, an 11% increase y-o-y US$ million except ratios and EPS FY2017 FY2018 y-o-y – Mostly driven by higher sales volumes of sunflower oil Income statemen
Slide 5: 1.2 Segment results FY2018
Balanced Financials and FY2018 results FY2018 results Kernel today growth strategy outlook 1.2 Segment results FY2018 Revenue, US$ m EBITDA, US$ m Volume, k t 1 EBITDA margin, US$ / t 2 FY2017 FY2018 y-o-y FY2017 FY2018 y-o-y FY2017 FY2018 y-o-y FY2017 FY2018 y-o-y Sunflower oil sold in bulk 1,068 1
Slide 6: 2. Kernel today
2. KERNEL TODAY
Slide 7: 2.1 Kernel today
Balanced Financials and FY2018 results Kernel Kernel today today growth strategy outlook 2.1 Kernel today Sunflower oil segment EBITDA 1, US$ million Key financials, US$ m1 FY14 FY15 FY16 FY17 FY18 ◼ #1 sunflower oil producer and exporter in the world Revenue 2,393 2,330 1,989 2,169 2,403 213 178 EB
Slide 8: 2.2 What we do
Balanced Financials and FY2018 results Kernel Kernel today today growth strategy outlook 2.2 What we do 1 Own farming: Kernel 6 Bottled sunflower oil: 7 Export terminals: Kernel operates 550 thousand ha of Approximately 8% of gross operates farmland in Ukraine bulk sunflower oil produced is • Deep-w
Slide 9: 2.3 Efficient and well-invested asset base
Balanced Financials and FY2018 results Kernel Kernel today today growth strategy outlook 2.3 Efficient and well-invested asset base Sunflower seed crushing capacity in thousand tons Poltava Transshipment capacity in thousand tons 429 Vovchansk 363 Prykolotne 172 Prydniprovskyi 617 Ellada 1 275 Kirov
Slide 10: 2.4 Kernel's key milestones
Balanced Financials and FY2018 results Kernel Kernel today today growth strategy outlook 2.4 Kernel’s key milestones Asset-light Acquisition of IPO & listing on Extending oilseed • Entering the Russian market by Exit of highly Acquisition of • Active export platform sunflower oil brand the Warsaw cr
Slide 11: 2.5 Sunflower oil division
Balanced Financials and FY2018 results Kernel Kernel today today growth strategy outlook 2.5 Sunflower oil division Sunflower oil sales 1,412 EBITDA margins ◼ Division’s EBITDA declined 22% y-o-y in FY2018, to US$ 77m thousand tons US$ / ton of sunflower oil sold 1,207 111 – Record sunflower seeds p
Slide 12: 2.6 Grain and infrastructure division
Balanced Financials and FY2018 results Kernel Kernel today today growth strategy outlook 2.6 Grain and infrastructure division Grain volumes traded Grain segment’s EBITDA margin Key export markets in FY2018 thousand tons 14.0 Grain: Thousand tons (excl. Avere traded volumes) 5,060 12.5 4,744 4,646 ◼
Slide 13: 2.7 Farming division
Balanced Financials and FY2018 results Kernel Kernel today today growth strategy outlook 2.7 Farming division Acreage harvested Crop yields 1 thousand hectares 596 tons per hectare, net FY2018 529 FY2017 50 8.9 FY2016 ◼ US$ 88 million EBITDA in FY2018, down 40% y-o-y 65 35 383 391 385 36 7.2 7.2 7.3
Slide 14: 3. Balanced growth strategy
3. Balanced growth strategy
Slide 15: 3.1 Kernel's mid-term strategy
Balanced Balanced Financials and FY2018 results Kernel today growth growth strategy strategy outlook 3.1 Kernel’s mid-term strategy We aim to profitably double export volumes by FY2021, providing comprehensive solutions to our clients (customers and suppliers), with balanced development of our busin
Slide 16: 3.2 Strategy 2021 serves as a solid basis for future growth
Balanced Balanced Financials and FY2018 results Kernel today growth growth strategy strategy outlook 3.2 Strategy 2021 serves as a solid basis for future growth Strategy 2021 pipeline overview: Approximate CapEx budgets, US$ m (excl. VAT) I Construction of greenfield oilseed processing plant in West
Slide 17: 4. Financials and outlook
4. FINANCIALS AND OUTLOOK
Slide 18: 4.1 Consolidated statement of profit or loss
Balanced Financials Financialsand and FY2018 results Kernel today growth strategy outlook outlook 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 Revenue 215 350 663 1,047 1,020 1,899 2,072 2,797 2,393 2
Slide 19: 4.2 Balance sheet
Balanced Financials Financialsand and FY2018 results Kernel today growth strategy outlook outlook 4.2 Balance sheet Balance sheet highlights US$ million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Cash & cash equivalents 6 25 89 129 59 116 83 79 65 129 60 143 132 Net trade accou
Slide 20: 4.3 Cash flow statement
Balanced Financials Financialsand and FY2018 results Kernel today growth strategy outlook outlook 4.3 Cash flow statement US$ million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 EBITDA 17 46 123 190 190 310 319 288 223 397 346 319 223 Finance cost paid (9) (18) (28) (32) (23) (3
Slide 21: 4.4 Outlook for FY2019
Balanced Financials Financialsand and FY2018 results Kernel today growth strategy outlook outlook 4.4 Outlook for FY2019 Sunflower Oil ◼ Improvement of crushing margin is expected as a record sunflower seed harvest of 15.5-16.0m tons in FY2019 (up 18% y-o-y) shall improve oilseed supply while the in
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 ▪ Q1 FY2019 Operations Update 22 October 2018 ▪ Q1 FY2019 Financial Report 29 November 2018 ▪ Annual general
Slide 23: Appendices
APPENDICES
Slide 24: A1. Key highlights
A1. Key highlights ◼ Kernel operates in globally competitive growing Ukrainian agri sector ◼ Integrated, resilient and simple business model built around scale & global reach ◼ Leader across all market segments supported by unparalleled world-class asset base with high barriers to entry ◼ Top standa
Slide 25: A2. Markets and business environment: sunflower oil
A2. Markets and business environment Sunflower oil Global consumption of vegetable oils Global sunflower oil exports Global edible oils market trends million tons million tons ◼ Consumption of edible oils increased by 3.6% y-o-y in marketing year 191 10.4 9.5 9.8 2017/18, versus 3.3% growth a year a
Slide 26: A2. Markets and business environment: grain and infrastructure
A2. Markets and business environment Grain and infrastructure Global grain exports Top grain exporting countries Top 5 grain exporters from Ukraine million tons million tons 2014/15 2015/16 2016/17 2017/18 429 416 429 394 377 United States Nibulon SFGCU Nibulon Nibulon 28 29 28 SFGCU Kernel Kernel K
Slide 27: A2. Low cycle of soft commodity prices
A2. Markets and business environment Low cycle of soft commodity prices Index of soft commodity prices, US$-inflation adjusted 300% 250% 200% 150% 100% 50% Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 1 3 Wheat Corn 2 Sunflower oil N