Kernel Holding S.a. · GPW:KER
Kernel — Q1 FY2015 Earnings Presentation
32 slides from Kernel's earnings presentation, November 2014
Slide 1: Leveraging Ukraine's natural advantage in agriculture
Leveraging Ukraine’s natural advantage in agriculture C O M P A N Y P R E S E N T A T I O N
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: Q1 FY2015 results highlights
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Q1 FY2015 results highlights Key Highlights: USD million except ratios and EPS Q1 FY2015 Q1 FY2014 y-o-y P&L highlights ii Revenues increased 40% y-o-y to USD 579.2 million in Q1 FY201
Slide 4: Q1 FY2015 segment results summary
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Q1 FY2015 segment results summary Revenue, USD million EBITDA, USD million EBITDA margin Volumes, thousand tons Q1 FY2015 Q1 FY2014 y-o-y Q1 FY2015 Q1 FY2014 y-o-y Q1 FY2015 Q1 FY2014
Slide 5: Sunflower oil in Q1 FY2015
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Sunflower oil in Q1 FY2015 Sunflower oil sales in bulk Sunflower oil sales in bulk, Sunflower oil sold in bulk EBITDA, thousand tons USD per ton ii Sunflower seed crushing volumes incr
Slide 6: Grain and infrastructure in Q1 FY2015
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Grain and infrastructure in Q1 FY2015 Grain Grain sales, Grain segment EBITDA, thousand tons USD per ton ii Grain sales increased 38% y-o-y to 1,220,855 tons in Q1 FY2015, driven by 25
Slide 7: Farming in Q1 FY2015
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Farming in Q1 FY2015 Farming and sugar Net crop yields, tons per hectare ii 97% acreage harvesting for FY2015 was completed as of this report’s pub- lication, with crop yields up 16-29
Slide 8: Balance sheet
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Balance sheet Balance sheet highlights USD million 30 Sep 2014 30 June 2014 30 Sep 2013 Invested capital Cash & cash equivalents 52.5 65.4 77.7 Net trade accounts receivable 72.6 99.8
Slide 9: P&L and cash flow
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials P&L and cash flow P&L highlights USD million except ratios and EPS Q1 FY2015 Q1 FY2014 Revenue 579.2 412.9 Net IAS 41 gain (1.6) (9.4) Gross profit 111.5 25.8 EBITDA 80.5 3.0 EBIT 60.4
Slide 10: Kernel at a glance
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Kernel at a glance Sunflower oil Stock information EBITDA Exchange Warsaw Stock Exchange $178m ii #1 sunflower oil producer and exporter in Ukraine. Stock quote currency PLN ii 2.9 mil
Slide 11: Our business model
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Our business model 1 Own farming 2 Third party farmers 3 Origination 4 Silo storage 5 Sunflower seed processing plants 6 Grain export 7 Bottled sunflower oil 8 Export terminals www.kerne
Slide 12: Asset map
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Asset map Kursk Voronezh Chernihiv Lutsk Sumy Belgorod Rivne Kyiv Zhytomyr Kharkiv Lviv Ternopil Poltava Cherkasy Khmelnytskyi Vinnytsia Ivano-Frankivsk Uzhhorod Volgograd Luhansk Kiro
Slide 13: Sunflower Oil
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Sunflower Oil www.kernel.ua Company presentation November 2014 13
Slide 14: Our business model
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Our business model ii #1 oilseed crusher in Ukraine; total capacity of 2.9 million tons of sunflower Sunflower seed industrial Kernel’s sunflower oil export by seed per year. crushing
Slide 15: FY2014 performance
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials FY2014 performance Sunflower oil sold in bulk Sunflower oil sold in bulk EBITDA Sunflower oil sold in bulk: (thousand tons) (USD/ton, %) ii Volumes down 12% y-o-y due to poor Q1 (low c
Slide 16: Grain and Infrastructure
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Grain and Infrastructure www.kernel.ua Company presentation November 2014 16
Slide 17: Our business model
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Our business model Kernel grain sales by crop Grain exports from Ukraine ii Top grain exporter from the Black Sea region, with a market share in (FY2012-FY2014) (2013/14) Ukraine of 9-
Slide 18: FY2014 performance
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials FY2014 performance Grain sales Grain segment’s EBITDA Grain: (thousand tons) (USD/ton, %) ii 40% volume growth driven by an upsurge in exports from Russia (first full year 36.7 of oper
Slide 19: Farming
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Farming www.kernel.ua Company presentation November 2014 19
Slide 20: Our business model
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Our business model Kernel’s farmed acreage ii Large-scale crop production on 389,000 hectares of leasehold farmland in Ukraine. (thousand hectares) ii A crop mix based on four crops al
Slide 21: FY2014 performance
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials FY2014 performance Net crop yields Farming segment’s EBITDA contribution was negative (tons per hectare) in FY2014 due to: ii 8-34% y-o-y drops in crop prices. 7.1 7.2 ii Yields signif
Slide 22: Operational improvements for FY2015
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Operational improvements for FY2015 Crop yield growth in FY2015, Key operational changes for crops in FY2015: y-o-y ii Shifting fertilizer application to autumn. ii Increasing fertiliz
Slide 23: Crop production cycle in Ukraine
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Crop production cycle in Ukraine FY2014 FY2015 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Corn Land preparation Fertilization Plant
Slide 24: Strategy and Outlook
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Strategy and Outlook www.kernel.ua Company presentation November 2014 24
Slide 25: Strategy
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Strategy Group imperatives Strategic pillars Mid-term action plan Ultimate goal Focus on margins Consolidate the oilseed Geographic focus crushing industry in Ukraine Excellence Increa
Slide 26: FY2015 outlook
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials FY2015 outlook Sunflower oil ii Crush of 2.4-2.5 million tons of sunflower seed in FY2015 vs. 2.3 million tons in FY2014. ii Healthy margins. Grain and infrastructure ii Grain exports
Slide 27: Financials
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Financials www.kernel.ua Company presentation November 2014 27
Slide 28: FY2014 results highlights
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials FY2014 results highlights USD million except ratios and EPS FY2014 FY2013 y-o-y Kernel’s debt vs. working capital P&L highlights (USD million) Revenue 2,393.3 2,796.8 (14.4%) 82 EBITDA
Slide 29: Segment results summary
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Segment results summary Revenue, USD million EBITDA, USD million EBITDA margin Volumes, thousand tons FY2014 FY2013 y-o-y FY2014 FY2013 y-o-y FY2014 FY2013 FY2014 FY2013 y-o-y Sunflowe
Slide 30: Balance sheet
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials Balance sheet Balance sheet highlights USD million FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Invested capital Cash & cash equivalents 6.4 25.3 88.5 129.3 59.5 115.
Slide 31: P&L and cash flow
Q1 FY2015 Kernel at Sunflower Grain and Strategy and Results a glance Oil Infrastructure Farming Outlook Financials P&L and cash flow P&L highlights USD million except ratios and EPS FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Revenue 215.2 350.4 663.1 1,047.1 1,020.5 1,899.1 2,07
Slide 32: IR contact
IR contact Yuriy Kovalchuk Corporate Investment Director investor_relations@kernel.ua Yegor Samusenko Investor Relations Manager y.samusenko@kernel.ua Tel.: +38 044 461-88-01, ext. 70-88 3 Tarasa Shevchenka Lane, Kyiv, Ukraine, 01001 Investor calendar ii Q1 FY2015 financial report 26 November 2014 i