Kernel Holding S.a. · GPW:KER
Kernel — H1 FY2017 Earnings Presentation
30 slides from Kernel's earnings presentation, September 2017
Slide 1: Kernel H1 FY2017 Results
KERNEL HIFY2017 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: Q2 FY2017 highlights
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Q2 FY2017 highlights Key highlights: USD million except ratios and EPS Q2 FY2017 Q2 FY2016 y-o-y H1 FY2017 H1 FY2016 y-o-y P&L highlights In Q2 FY2017 revenue increased 6% y-o-y to US
Slide 4: Segment results summary
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Segment results summary Revenue, USD million EBITDA, USD million Volume, thousand tons EBITDA margin USD million except ratios Q2 FY2017 Q2 FY2016 y-o-y Q2 FY2017 Q2 FY2016 y-o-y Q2 FY2
Slide 5: Sunflower oil in Q2 FY2017
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Sunflower oil in Q2 FY2017 Sunflower oil sold in bulk segment: Sunflower oil in bulk sales, Sunflower oil sold in bulk EBITDA, thousand tons USD per ton Oilseeds crushing volumes stoo
Slide 6: Grain and infrastructure in Q2 FY2017
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Grain and infrastructure in Q2 FY2017 Grain marketing: Grain exports, Grain exports EBITDA, thousand tons USD per ton Grain export volumes increased to a record of 1.5 million tons in
Slide 7: Farming in H1 FY2017
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Farming in H1 FY2017 Farming: Net crop yields, Tons per hectare FY2010 FY2012 FY2014 FY2016 In H1 FY2017, the segment’s revenues stood at US$ 271 million, down 21% y-o-y owing FY2011
Slide 8: Q2 FY2017 balance sheet
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Q2 FY2017 balance sheet Balance sheet highlights USD million 31 Dec 2016 30 Jun 2016 31 Dec 2015 Invested Capital Cash & cash equivalents 68.9 60.4 116.1 Net trade accounts receivable 1
Slide 9: Q2 FY2017 P&L and cash flows
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Q2 FY2017 P&L and cash flows P&L highlights USD million, except ratios and EPS Q2 FY2017 Q2 FY2016 y-o-y Revenue 659.3 620.8 6.2% Net IAS 41 gain 1.7 3.1 0.6x Gross profit 157.1 166.3 (
Slide 10: Kernel at a glance
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Kernel at a glance Sunflower oil EBITDA Stock inform ation $129m #1 sunflower oil produces and export in Ukraine Exchange Warsaw Stock Exchange 3.5 million tons/ year sunflower seed
Slide 11: Kernel's key milestones and shareholder overview
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Kernel’s key milestones and shareholder overview Entered the Russian market by acquiring Extended oilseed Russian Oils. Acquired Acquired oilseed Began with asset-light Acquired the oil
Slide 12: Kernel operates a fully integrated business model
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Kernel operates a fully integrated business model 1 Own farming/3rd party 7 Bottled sunflower oil: 8 Export terminals: Operates 2 farmers: 385,000 ha of Approximately 10 of gross 2 deep
Slide 13: Well-invested and strategic asset base representing high barrier to entry
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Kernel has a well-invested and strategic asset base representing high barrier to entry Poltava, 429 thousand tons Prikolotnoe, 172 thousand tons Volchansk, 363 thousand tons Prydniprovs
Slide 14: Kernel's mid-term strategy
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Kernel’s mid-term strategy We aim to profitably double export volumes, providing unique complex solutions to our clients: customers and suppliers, by balanced development of our busines
Slide 15: Sunflower oil
SUNFLOWER OIL
Slide 16: Our business model
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Our business model #1 oilseed crusher in Ukraine; total capacity of 3.5 million tons of Sunflower seed industrial crushing Sunflower oil sold in bulk exports by sunflower seed per yea
Slide 17: Sunflower oil in FY2016
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Sunflower oil in FY2016 Sunflower oil sold in bulk segment: Sunflower oil in bulk sales, Sunflower oil sold in bulk EBITDA, thousand tons USD per ton While the supply of sunflower see
Slide 18: Grain and infrastructure
GRAIN AND INFRASTRUCTURE
Slide 19: Our business model
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Our business model Top grain exporter from the Black Sea region, with a market share in Grain and oilseed production in Ukraine, Grain and oilseed production in Russia, Ukraine of 9-1
Slide 20: Grain and infrastructure in FY2016
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Grain and infrastructure in FY2016 Grain exports: Grain sales, Grain segment’s EBITDA, thousand tons USD per ton Grain sales volumes stood at 4.4 million tons, down 7% y-o-y, due to t
Slide 21: Infrastructure is a captive origination platform supporting growing export volumes
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Kernel’s infrastructure is a captive origination platform, supporting growing export volumes, 13% CAGR over the past three years Kernel’s grain exports, thousand tons Russia Ukraine +13
Slide 22: Farming
FARMING
Slide 23: Our business model
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Our business model Large-scale crop production on 385,000 hectares of leasehold farmland in Ukraine. Kernel’s farmed acreage crop mix 15.3% 7.6% 8.5% 7.3% 6.9% A crop mix based on f
Slide 24: Farming in FY2016
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Farming in FY2016 Farming: Acreage harvested, Farming segment’s EBITDA, thousand ha USD per ton In FY2016, our farming division contributed 38% of the Group EBITDA, thus having anothe
Slide 25: Financials and outlook
FINANCIALS AND OUTLOOK
Slide 26: Kernel has a track record of strong financial performance
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Kernel has a track record of strong financial performance Income statement highlights USD million, except multiples FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Slide 27: Balance sheet
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook Balance sheet Balance sheet highlights USD million FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Invested Capital Cash & cash equivalents 6.4 25.3 88.5 12
Slide 28: P&L and cash flow
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook P&L and cash flow P&L highlights USD million, except ratios and EPS FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Revenue 215.2 350.4 663.1 1,047.1 1,020.
Slide 29: FY2017 outlook
Kernel at a Sunflower oil Grain and Farming Financials & Q2 FY2017 glance business Infrastructure division outlook FY2017 outlook Sunflower oil: In preparation for the upcoming marketing year, our Black Sea Industries, a crushing plant located in Chornomorsk (formerly Illichevsk), underwent improv
Slide 30: IR contact
IR contact . www.kernel.ua Company presentation February 2017 29