Astarta Holding PLC · GPW:AST
Astarta — Investor Presentation (April 2010)
21 slides from Astarta's investor presentation, April 2010
Slide 1: ASTARTA Holding N.V.
ASTARTA Holding N. V. Integrated agri-industrial producer April, 2010
Slide 2: ASTARTA key figures and facts
ASTARTA key figures and facts Shareholders structure Established in 1993 and expanded into sugar production and agribusiness Free float Viktor 25% Ivanchyk, Leading vertically integrated business with own CEO production assets, infrastructure, storages, and 40% logistics 5 regional business-units
Slide 3: Optimal assets location
Optimal assets location LLC «Volochysk-Agro» LLC Agricultural company «Dovzhenko» 28 th. ha of agricultural land 55 th. ha of agricultural land SP Narkevychi sugar plant Yaresky sugar plant SP LLC IPC «Poltavazernoproduct» 37 th. ha of agricultural land SP Globino sugar plant SP Veselopodilsky sugar
Slide 4: Sustainable growth of production assets
Sustainable growth of production assets 200,000 200,000 180,000 175,000 166,000 160,000 135,000 140,000 120,000 100,000 90,000 80,000 66,900 60,000 44,000 40,000 25,700 20,000 0,000 2003 2004 2005 2006 2007 2008 2009 2010F Area of agricultural land under lease, hectares (as of December 31) Sustaina
Slide 5: Synergy of ASTARTA crop rotation schema
Synergy of ASTARTA crop rotation schema ASTARTA crop rotation in 2010 High synergy & cost efficiency Progressive land quality improvement Efficient application of agricultural machinery, logistics and labor Risk mitigation 5
Slide 6: Sugar segment: beet cultivation
Sugar segment: beet cultivation Sowing areas under sugar beet Progressing productivity per hectare thousand hectares Beet with high sugar content, resilience 43 and processing adaptability 34 30 Increasing areas under sugar beet 23 16 2006 2007 2008 2009 2010E Sugar beet yield, t/ha (gross) Sugar
Slide 7: Sugar segment: processing
Sugar segment: processing Sugar production, thousand tons Gas consumption (cubic meters per ton of beet processed) 64 61 49 50 44 36 32 2007 2008 2009 2010E ASTARTA Ukrainian average High self-sufficiency of beet supplies due to vertical integration More than USD 50 mln invested into new equipment
Slide 8: Sugar sales
Sugar sales Major clients Sugar sales in 2009, clients’ shares Traders Konti 16% 21% Strong position in the B2B segment, Other supplying sugar for industrial processing industrial 23% Coca-Cola About 84% of Group’s sugar sold to big 18% industrial consumers Kraft Foods Ukraine Flexibility of the
Slide 9: Ukrainian sugar sector consolidation
Ukrainian sugar sector consolidation Ukrainian sugar market by producers’ shares Year 2007 Year 2008 Year 2009 In 2009, 56 plants operated in Ukraine (69 in 2008, and 106 in 2007). Inefficient companies are leaving the market Consolidation and reshuffle of Ukrainian sugar industry will continue 9
Slide 10: Ukrainian sugar market
Ukrainian sugar market Sugar beet acreage and sugar production Steady consumption at around 2 million tones In 2009 only 1.27 million tons produced, shortage will keep Ukrainian prices high WTO quota of 260-269 thousand tons of raw sugar cane with 2% import Sugar market by consumption, ths. tons
Slide 11: Crop production
Crop production Grain crops and oilseeds production, thousand tons In 2009 ASTARTA gross harvest of grains and oilseeds reached 376 thousand tons ASTARTA's yields in 2009 were traditionally 30- 40% above the Ukrainian averages Potential for yields upgrade at ASTARTA’s farms following sustainable
Slide 12: ASTARTA crop sales
ASTARTA crop sales The breakdown of crop sales by clients in 2009, value 27% increase in volume of crop Louis Dreyfus sales y-o-y 26% Ukrainian hryvnia depreciation became a positive incentive for Other crop exports 49% Around 40% of revenues from Kernel Trade 16% crops sales constituted export
Slide 13: ASTARTA cattle farming business
ASTARTA cattle farming business 60 50 50 44 26 22 40 33 18 28 16 30 14 21 20 10 11 20 10 8.0 6.4 10 4.9 4.5 0 2005 2006 2007 2008 2009 2010F Heads of cattle, ths. Heads of cows, ths. Milk production, ths. tons ASTARTA farming division is focused on cattle genetics’ and milk yields improvement 29 %
Slide 14: Export sales
Export sales Export Sales in 2007-2010, million USD Share of export sales in total revenues in 2009 25 12% 20 14.3 8.0 88% 2007 2008 2009 2010F Export sales in 2009 about US$ 20 million, or 12% of the total revenues ASTARTA is fully hedged on cash flow level as export revenues fully cover interest
Slide 15: Synergy of ASTARTA business segments
Synergy of ASTARTA business segments Cost, estimated revenues and EBITDA per 1 ha, (ths. UAH) Beet/sugar Vertical integration of beet/sugar production generates high revenue/EBITDA per hectare Presence of beet/sugar in products basket provides for synergy and makes business less risky 15
Slide 16: Breakdown of revenues: FY2008 to FY2009
Breakdown of revenues: FY2008 to FY2009 2008 2009 Other sales Cattle and service Other sales farming 2% Cattle and service 7% farming 3% 7% Crops Sugar 57% Sugar Crops 24% UAH 971 mln 25% UAH 1 355 mln 60% Sugar by- products Sugar by- 10% products 4% The Group’s revenues grew by 40% y-o-y in FY2009
Slide 17: Key Financials
Key Financials (thousands EUR and %) 2009 2008 2007 2006 2005 Revenues 117,718 123,382 87,747 68,051 51,783 Cost of revenues (79,584) (88,735) (63,145) (53,984) (36,403) Gross profit 38,134 34,647 24,602 14,067 15,380 Gross margin 33% 28% 28% 21% 30% EBITDA 50,085 30,893 30,820 10,272 11,916 EBITDA
Slide 18: Financial results by segment
Financial results by segment Sugar Cattle (thousands of EUR and %) production Agriculture farming Sales to external customers 77,203 29,256 8,091 Cost of revenues (50,458) (19,386) (6,951) Gross profit 26,745 9,870 1,140 Gross margin 35% 34% 14% 18
Slide 19: Key data and ratios
Key data and ratios 2009 2008 2007 2006 MARKET CAPITALIZATION (mln EUR) 243,4 65,9 223,3 111,5 ENTERPRISE VALUE (mln EUR) 329,7 156,9 277,1 146,4 ROE 25.0% -13.2% 21.7% 9.3% ROA 12.7% -4.4% 12.4% 4.8% EV / EBITDA 6.58 5.08 8.99 12.94 EV / SALES 2.80 1.27 3.16 2.15 DEBT / EQUITY 0.98 2.01 0.74 0.93 N
Slide 20: Outlook for 2010
Outlook for 2010 Improvement of crop rotation, application of high quality seeds, fertilizers Operations and plant protection agents Energy efficiency projects and up-rate of sugar plants resulting in lower energy consumption and higher daily capacity Increase of agricultural production and su
Slide 21: Disclaimer
Disclaimer Disclaimer This presentation is being provided to you solely for your information and may not be reproduced or further distributed to any other person or published, in whole or in part, for any purpose. This presentation comprises the written materials/slides for a presentation concerning