Rusagro Group · RUS:RAGR
Rusagro — Ros Agro — Q3 2023 Earnings Presentation
29 slides from Rusagro's earnings presentation, Nov 13, 2023
Slide 1: Ros Agro PLC Investors Presentation 3Q 2023 and 9M 2023
NOVEMBER 13TH, 2023 ROS AGRO PLC INVESTORS PRESENTATION 3Q 2023 AND 9M 2023
Slide 2: Ros Agro PLC at a Glance 2022
ROS AGRO PLC AT A GLANCE 2022 2 Diversified Business and Vertical Integration Leading Market Positions Financial Results 2022 Agriculture Business Sugar Business № 1 № 2 240 Sugar beet Consumer margarine Industrial fats and • Beet sugar production producer in Russia sunflower oil producer • Cultivat
Slide 3: Table of Contents
TABLE OF CONTENTS 3 1 Summary Key Indicators (IFRS) 3Q 2023 vs 3Q 2022 4 2 Business Overview by division (IFRS) 8 3 Overview of Debt profile and Cash Flows 16 4 Additional information 19
Slide 4: Section 1: Summary Key Indicators (IFRS) 3Q 2023 vs 3Q 2022
SECTION 1 SUMMARY KEY INDICATORS (IFRS) 3Q 2023 VS 3Q 2022
Slide 5: Key Events 3Q 2023
KEY EVENTS 3Q 2023 5 100% acquisition of JSC ”Biotechnologii” shares and control over the elevator The acquisition of 100% of shares and control over the grain elevator of JSC ”Biotechnologii” was underway during the third quarter. The deal was successfully closed in October. The elevator has a one-
Slide 6: Highlights 3Q 2023 vs 3Q 2022
HIGHLIGHTS 3Q 2023 VS 3Q 2022 6 +31% +171% +11 pp +1,380% -0.60* 71.7 15.0 21% 25.3 1.62 RUB bn RUB bn adj. EBITDA RUB bn Net Debt / Adj. Net Revenue adj. EBITDA margin EBITDA (LTM) Net profit +5% -5% -26% +83% +78% 208 68 303 1,608 5.4 ths tn ths tn ths tn ths tn RUB bn Sugar Sales Pork products Sa
Slide 7: Net Revenue, Adjusted EBITDA: 3Q 2023 vs 3Q 2022
NET REVENUE, ADJUSTED EBITDA: 7 3Q 2023 vs 3Q 2022 Net Revenue increased by RUB 16,878 million (+31%): Net revenue (IFRS) 3Q 2023 vs 3Q 2022 RUB million +31% • Revenue of Sugar segment increased by RUB 2,738 million (+26%) mainly due (RUB +16,878 million) to the increase in the selling price followi
Slide 8: Section 2: Business Overview by Division (IFRS)
SECTION 2 BUSINESS OVERVIEW BY DIVISION (IFRS) 3Q 2023 VS 3Q 2022
Slide 9: Sugar Key Indicators 3Q 2023 vs 3Q 2022
SUGAR 9 KEY INDICATORS 3Q 2023 VS 3Q 2022 (IFRS) Adj. EBITDA 3Q 2022 2,727 Sales (RUB +2,738 million, +26%): • Growth of sales prices due to the increase of USD exchange rate, change of sales Sales — Price factor 2,267 structure by channels and increase in sales efficiency; Sales — Volume factor 491
Slide 10: Meat Key Indicators 3Q 2023 vs 3Q 2022
MEAT 10 KEY INDICATORS 3Q 2023 VS 3Q 2022 (IFRS) Adj. EBITDA 3Q 2022 (27) Sales (RUB +1,744 million, +16%): • Increase in average sales prices for meat products and livestock; Sales — Price factor 2,426 • Decrease in production volume following African swine fever and other pigs’ diseases outbreaks
Slide 11: Agriculture Key Indicators 3Q 2023 vs 3Q 2022
AGRICULTURE 11 KEY INDICATORS 3Q 2023 VS 3Q 2022 (IFRS) Adj. EBITDA 3Q 2022 1,427 Sales (RUB +6,212 million, +103%): • Transfer of wheat sales volumes from previous quarters; Sales — Price factor 18 • Transfer of oil crops sales volumes from the previous periods due to prolongation of harvesting per
Slide 12: Oil & Fats and NMGK Key Indicators 3Q 2023 vs 3Q 2022
OIL & FATS AND NMGK 12 KEY INDICATORS 3Q 2023 VS 3Q 2022 (IFRS) Adj. EBITDA 3Q 2022 1,237 Oil & Fats Sales (RUB -5,609 million, -18%): • Decrease in sales volumes of bulk oil and meal because of the suspension of Balakovo oil Sales — Price factor (2,647) extraction plant for modernization; Sales — V
Slide 13: Agriculture Business Overview
AGRICULTURE 13 BUSINESS OVERVIEW Agricultural works calendar for 2023* 1Q 2Q 3Q 4Q Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Winter wheat Spring wheat Sugar beet Soybean Central region Soybean Far East region Sunflower Corn Sowing Growing Harwesting (*) Average terms by crops (weighted average
Slide 14: Commodity Prices
COMMODITY PRICES 14 Sugar ISCO-Krasnodar, RUB/kg excl. VAT Sunflower meal, EXW, RUB/kg excl. VAT Source: ISCO-IKAR Source: IKAR 22.2 22.2 56.7 55.5 57.7 54.8 53.8 17.0 17.6 47.8 63.5 60.7 14.0 14.6 14.8 13.6 45.6 12.9 12.3 12.8 54.8 56.8 10.6 10.5 11.2 52.0 53.6 2022 2022 48.8 49.6 14.0 45.0 45.2 45
Slide 15: Section 3: Overview of Debt Profile and Cash Flows
SECTION 3 OVERVIEW OF DEBT PROFILE AND CASH FLOWS
Slide 16: Debt Profile as of 30 September 2023
DEBT PROFILE AS OF 30 SEPTEMBER 2023 16 Debt position and liquidity management Gross debt by repayment maturity RUB million 30 September 31 December Variance RUB million 2023 2022 Units % 2 3-5 More than 1 year years years 5 years Gross debt 194 468 233 390 (38 922) (17) Short-term borrowings 133 22
Slide 17: Cash Flows: 9M 2023 vs 9M 2022
CASH FLOWS: 9M 2023 VS 9M 2022 17 Cash Flows according to Management view (not IFRS presentation)*, RUB million 9M 2023 9M 2022 Adj. EBITDA 30,633 35,371 Adjustments to EBITDA 649 (2,944) Inventories and bio assets (1,838) (5,425) AR and AP 21,799 (18,473) Other (1,155) 902 Income tax paid (2,709) (
Slide 18: Section 4: Additional Information
SECTION 4 ADDITIONAL INFORMATION
Slide 19: 9M 2023 Highlights
9M 2023 HIGHLIGHTS 19 -2% -13% -2 pp +1,666% -0.60 178.2 30.6 17% 38.5 1.62 RUB bn RUB bn adj. EBITDA RUB bn Net Debt / Adj. Net Revenue adj. EBITDA margin EBITDA (LTM) Net profit -7% +4% -15% +90% +125% 589 214 1 019 2,625 17.2 ths tn ths tn ths tn ths tn RUB bn Sugar Sales Pork products Sales Oil&
Slide 20: Net Revenue, Adjusted EBITDA: 9M 2023 vs 9M 2022
NET REVENUE, ADJUSTED EBITDA: 20 9M 2023 VS 9M 2022 Net Revenue decreased by RUB 3,803 million (-2%): Net revenue (IFRS) 9M 2023 vs 9M 2022 RUB million • Revenue of Sugar segment decreased by RUB 391 million (-1%) mainly due to the decrease in sales of other products (beet pulp, molasses, buckwheat)
Slide 21: Consolidated Statement of Comprehensive Income (IFRS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS) 21 FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2023 RUB million Varianсes Varianсes Description 9M 2023 9M 2022 3Q 2023 3Q 2022 Units % Units % Sales 178 224 182 027 (3 803) (2) 71 674 54 796 16 878 31 Net gain / (loss) on revaluation of biological as
Slide 22: Segment Information for Nine Months Ended 30 September 2023
SEGMENT INFORMATION 22 FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2023 RUB million Sugar Meat Agriculture Oil and Fat NMGK Other Elimination Total Sales 37 289 35 563 23 789 76 144 14 971 1 461 (10 994) 178 224 Net gain / (loss) on revaluation of biological assets and - 3 337 5 546 - - - (249) 8 633 agr
Slide 23: Segment Information for Nine Months Ended 30 September 2022
SEGMENT INFORMATION 23 FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2022 RUB million Sugar Meat Agriculture Oil and Fat NMGK Other Elimination Total Sales 37 679 31 795 17 123 102 366 - 913 (7 849) 182 027 Net gain/ (loss) on revaluation of biological assets and - (330) 1 385 - - - (3 142) (2 087) agricul
Slide 24: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF СASH FLOWS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2023* 24 RUB million Variance 9M 2023 9M 2022 Units % Cash flows from operating activities Profit before income tax 44 191 1 979 42 212 2 133 Adjustments for non-cash and non-operating (income)/expenses, net: Depreciation an
Slide 25: Consolidated Statement of Cash Flows (continued)
CONSOLIDATED STATEMENT OF СASH FLOWS 25 FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2023* - CONTINUANCE RUB million Variance 9M 2023 9M 2022 Units % Cash flows from investing activities Purchases of property, plant and equipment (16 990) (7 434) (9 556) (129) Purchases of other intangible assets (671) (6
Slide 26: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) 26 AS AT 30 SEPTEMBER 2023 RUB million 30 September 31 December Variances 2023 2022 Units % ASSETS 452 327 432 827 19 500 5 Current assets Cash and cash equivalents 24 496 21 473 3 023 14 Short-term investments 85 687 91 383 (5 696) (6) Trade and o
Slide 27: Consolidated Statement of Financial Position (continued)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) 27 AS AT 30 SEPTEMBER 2023 - CONTINUANCE RUB million 30 September 31 December Variances 2023 2022 Units % Liabilities and EQUITY 452 327 432 827 19 500 5 Current liabilities Short-term borrowings 133 226 172 352 (39 126) (23) Lease liabilities 824
Slide 28: Net Revenue, Adjusted EBITDA by Segment: 9M 2023 vs 9M 2022
NET REVENUE, ADJUSTED EBITDA: 28 9M 2023 VS 9M 2022 Sugar: Meat: Sales, Adjusted EBITDA and Adjusted EBITDA margin Sales, Adjusted EBITDA and Adjusted EBITDA margin 37% 31% 37,679 37,289 35,563 31,795 9% 14,055 11,381 3% 1,010 3,289 9M 2022 9M 2023 9M 2022 9M 2023 Sales, RUB million Adj. EBITDA, RUB
Slide 29: Net Finance Income/(Expense)
NET FINANCE INCOME/ (EXPENSE) 29 Comments Net finance income/ (expense) RUB million Net finance expense in 9M 2022 in the amount of Variance Variance RUB 17,378 million changed to net finance 9M 2023 9M 2022 3Q 2023 3Q 2022 Units % Units % income of RUB 11,487 million in 9M 2023 (RUB Net interest ex