Astarta Holding Plc · GPW:AST
Astarta — Q1 2020 Earnings Presentation
31 slides from Astarta's earnings presentation, May 21, 2020
Slide 1: ASTARTA 1Q20 operating and financial results
ASTARTA 1Q20 operating and financial results
Slide 2: 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 ASTARTA Ho
Slide 3: 1Q20 Highlights
1Q20 Highlights Summary P&L EURk 1Q19 1Q20 • In 1Q20 ASTARTA’s revenues decreased to EUR101m, down by Revenues, including 112 350 101 344 10% y-o-y, due to lower sales in the Agricultural segment which Agriculture 58 533 39 170 generated 39% of consolidated sales versus 52% a year ago Sugar producti
Slide 4: 1Q20 Highlights: Cash Flows and Balance Sheet
1Q20 Highlights Summary Cash Flows Summary Balance Sheet EURk 1Q19 1Q20 EURk 1Q19 YE19 1Q20 Pre-tax income (5 381) (15 159) Right-of-use asset (mainly land) 124 594 142 035 120 025 D&A 14 530 15 820 Biological assets (non-current) 17 205 30 011 24 676 Financial interest expenses, net 4 659 2 528 PP&
Slide 5: Agriculture
Agriculture Sales volumes of key crops Financial results kt 2017 2018 2019 1Q19 1Q20 EURk 2017 2018 2019 1Q19 1Q20 Corn 394 358 714 283 236 Revenues, including 140 918 126 765 205 712 58 533 39 170 Wheat 383 270 266 11 3 Corn 55 948 52 846 109 973 43 343 38 155 Sunseeds 55 78 103 12 - Wheat 54 003 4
Slide 6: Agriculture: Achievements and Outlook
Agriculture Key crop planting area - 2019 vs 2020, kha 66 65 • Among Top 5 agricultural land banks in Ukraine with over 50 48 230kha 41 • Harvest of grain and oilseed crops in excess of 1.0mt in 31 35 35 33 28 2018 and 2019 Achievements • The largest sugar beet grower with 1.7mt harvest in 2019 • Cr
Slide 7: Global agricultural market fundamentals
Global agricultural market fundamentals Corn global ending stocks vs stock to use Wheat global ending stocks vs stock to use mt mt Ending stocks Stock to use 350 Ending stocks Stock to use 45% 400 35% 350 300 40% 30% 35% 300 25% 250 30% 250 200 20% 25% 200 20% 15% 150 150 15% 100 10% 100 10% 50 5% 5
Slide 8: Sugar production
Sugar production Production Financial results Unit 2017 2018 2019 EURk 2017 2018 2019 1Q19 1Q20 Sugar production kt 463 352 Revenues 302 200 565 119 436 116 893 19 740 28 755 Sugar beet processed kt 3 077 Cost of sales 2 472 1 950 (130 972) (103 779) (107 637) (17 574) (24 671) Own sugar beet % 79%
Slide 9: Sugar production, consumption and exports - Ukraine
Sugar production Sugar production, consumption and exports - Ukraine mt • The domestic market has been slowly adjusting 2,5 2.3 2 000,0 to lower consumption volume by reducing sugar 2.2 2.1 2.1 2.1 1 800,0 beet planting area to 207kha in 2020 (according 2,0 1.8 1.7 1.8 1 600,0 to preliminary data by
Slide 10: Sugar production: Key achievements
Sugar production • Preserved leadership position locally with a market share of over 20% in 2019 Key achievements • According to Ukrsugar, the Top-5 Ukrainian sugar producers: ASTARTA – 20.4%, Radekhivskyi Sugar - 20.0%, Ukrprominvest – 15.5%, Svitanok – 6.0%, A’SPIK – 4.8% • Sustained high quality
Slide 11: Soybean processing
Soybean processing Production Financial results kt 2017 2018 2019 1Q19 1Q20 EURk 2017 2018 2019 1Q19 1Q20 Soybean processed 218 215 231 63 64 Revenues, including 72 713 74 290 82 718 23 810 22 348 Soybean meal 153 158 159 46 47 Soybean meal 46 512 48 081 53 975 15 518 15 020 Soybean oil 40 41 44 12
Slide 12: Cattle farming
Cattle farming Milk production, herd and productivity Financial results 2017 2018 2019 1Q19 1Q20 EURk 2017 2018 2019 1Q19 1Q20 Milk production, kt 110 106 96 27 24 Revenues 31 795 29 309 34 603 8 820 10 042 Herd, k heads 27 27 24 26 22 Cost of sales (23 355)(24 852) (27 692) (6 780) (8 224) Milk yie
Slide 13: Strategy and outlook
Strategy and outlook Financial goals • Active working capital management and capex at maintenance levels while sugar product margins remain historically low • Reduce leverage to a sound level • Wide ranging cost cutting measures to reduce fixed and variable costs across the board • Retain No 5 agric
Slide 14: Covid-19 response
Covid-19 response Personnel Finances • Intensive communication and education campaign on COVID to • ASTARTA accumulated significant financial resources up until promote prevention among employees the end of the planting season (i.e. until June 2020) • Mandating working from home for office-based emp
Slide 15: Summary Financials
(()) ASTARTA- KYIV agri-industrial holding Summary Financials
Slide 16: Last three years highlights
Last three years highlights Revenues, EURm Investments, EURm ∑51 ∑459 ∑448 60 ∑57 14% 00 5 13 14% 50 8 50 12% 12% 32 ∑372 35 7 00 73 10% 50 22 83 40 29 ∑24 00 74 39 8% 141 30 50 34 5% 6% 206 2 00 127 20 50 4% 00 201 10 21 119 117 10 2% 50 13 - - 1 0% 2017 2018 2019 2017 2018 2019 Sugar Agriculture S
Slide 17: Agriculture: FCF 2006-2019
Agriculture FCF of the agricultural segment for 2006 – 2019 2006-2019 Units Average revenue per ton of product sold EUR/t 162 EBITDA EURm 614 Capex EURm (292) FCF EURm 322 17
Slide 18: Sugar: FCF 2006-2019
Sugar FCF of the sugar segment for 2006 - 2019 2006-2019 Units Average revenue per ton of product sold EUR/t 487 EBITDA EURm 447 Capex EURm (165) FCF EURm 282 18
Slide 19: Soybean processing: FCF 2013-2019
Soybean processing FCF of the soybean processing segment for 2013 - 2019 2013-2019 Units Average revenue per ton of product sold EUR/t 390 EBITDA EURm 67 Capex EURm (29) FCF EURm 38 19
Slide 20: Cattle farming: FCF 2006-2019
Cattle farming FCF for the cattle farming segment for 2006 - 2019 2006-2019 Units Average revenue per ton of product sold EUR/t 312 EBITDA EURm 121 Capex EURm (26) FCF EURm 95 20
Slide 21: Consolidated Balance sheet
Consolidated Balance sheet EURm 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q19 1Q20 Right-of-use asset (mainly - - - - - - - - - - - - 110 142 125 120 land) Biological assets 4 6 5 13 15 20 44 45 30 19 15 22 17 30 17 25 PP&E and other 33 79 79 111 148 231 244 321 237 232
Slide 22: Consolidated statement of profit and loss
Consolidated statement of profit and loss EURm 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q19 1Q20 Revenues 68 88 123 128 219 304 353 327 352 314 369 459 372 448 112 101 Cost of revenues (55) (67) (96) (83) (128) (193) (286) (293) (268) (219) (257) (355) (324) (400) (99)
Slide 23: Consolidated Cash Flows
Consolidated Cash Flows EURm 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q19 1Q20 PBIT 6 23 (11) 30 80 90 45 21 (67) 14 85 63 (16) 1 (5) (15) Depreciation and amortization 4 5 9 8 13 17 25 27 25 22 29 37 46 63 15 16 Gain on acquisition of subsidiaries (4) (5) (9) (0) (4) (
Slide 24: Appendix
(()) ASTARTA- KYIV agri-industrial holding Appendix
Slide 25: ASTARTA - Value chain
ASTARTA - Value chain Crop growing Storage, Handling Processing & Logistics Primary agriculture Storage & Handling Sugar • Among Ukraine’s Top 5 agriproducers • 7 grain and oilseeds silos with • 20%-35% share of the local sugar market by by land bank and production storage capacity – 550kt consumpti
Slide 26: Valuation and capital structure
Valuation and capital structure EV 2017-2019 500 10,0 450 9,0 400 134 8,0 350 6.8 7,0 94 300 309 104 6,0 250 4.8 4.7 5,0 200 139 4,0 3.7 3.5 150 3,0 100 220 2,0 50 1.1 136 1,0 130 0 0,0 2017 2018 2019 Net debt Lease liabilities MCAP EV/EBITDA Net debt/EBITDA Equity Coverage Top 10 shareholders Board
Slide 27: Debt profile
Debt profile Debt breakdown by currency Debt breakdown by maturity as of 31 March 2020 as of 31 March 2020 UAH denominated loan; 4% Less than 1 USD year; 35% denominated loan; 96% More than 2 years; 54% From 1 to 2 years; 11% Debt breakdown by lenders as of 31 March 2020 Working Capital Lines IFI; 5
Slide 28: ASTARTA IT solutions
ASTARTA IT solutions • AgriChain is a proprietary integrated multi-module IT solution for agribusiness management. The core of AgriChain is a WEB-portal, consisting of eight modules Launched • AgriChain Land is the farmland management module covering land mapping, lease agreements, leaseholders’ and
Slide 29: Sustainability framework
Sustainability framework • Compliance with the regulatory requirements of Ukrainian legislation in industrial safety, labor and environmental protection • Compliance with international standards in social and environment spheres • Determination of environmental aspects and risks when planning furthe
Slide 30: Key ESG facts
Key ESG facts Energy consumption Waste by disposal method Water consumption, m3/t of s.b. Landfill Other Gas, m3/t of s.b. Disel, kg/ha 0.05% Hazardous wastes 0.90 0.18% Ecological 0.01% Recycling 32.53% 0.85 85 75 74 0.82 24 23 23 Reuse 2017 2018 2019 67.23% 2017 2018 2019 Employees by gender 32% L
Slide 31: FV of biological assets
FV of biological assets Crops calendar Mar Apr May Jun Jul Aug Sep Oct Nov Dec Assets in agriculture Sugar beets Winter crops Biological assets Agricultural produce Corn Agriculture Agriculture Sunflower Non-current Current produce produce seeds Livestock unharvested at the point of subsequent crops