Astarta Holding Plc · GPW:AST
Astarta — FY2019 Earnings Presentation
36 slides from Astarta's earnings presentation, Apr 14, 2020
Slide 1: 2019 operating and financial results
ASTARTA 2019 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: 2019 Highlights
2019 Highlights Summary P&L EURk 2018 2019 • In 2019 ASTARTA’s revenues increased to EUR 448m, up by Revenues, including 372 222 448 006 20% y-o-y, on strong volume sales growth in the Agricultural Agriculture 126 765 205 712 segment which generated nearly half of total revenues Sugar 119 436 116 89
Slide 4: 2019 Highlights
2019 Highlights Summary Cash Flows Summary Balance Sheet EURk 2018 2019 EURk YE18 YE19 Pre-tax income (15 599) 822 Right-of-use asset (mainly land) 110 396 142 035 D&A 45 669 62 571 Biological assets (non-current) 17 064 30 011 Financial interest expenses, net 13 086 16 940 PP&E and other 276 701 30
Slide 5: Agriculture
Agriculture Production of key crops* Financial results kt 2017 2018 2019 EURk 2017 2018 2019 Corn 339 622 581 Revenues 140 918 126 765 205 712 Wheat 237 242 256 Cost of revenues (125 324) (111 772) (188 847) Sunseeds 73 117 90 incl lease costs (mainly land) (31 844) n/a n/a Soybeans 63 69 81 incl la
Slide 6: Agriculture achievements
Agriculture ASTARTA grain and oilseed crop yields vs average Ukrainian, t/ha 2016 2017 2018 2019 t/ha ASTARTA Ukraine ASTARTA Ukraine ASTARTA Ukraine ASTARTA Ukraine Corn 8.7 6.6 6.4 5.4 9.8 7.8 8.7 7.1 Wheat 5.8 4.2 5.0 4.1 4.7 3.7 5.1 4.2 Sunseeds 2.6 2.2 2.3 2.0 2.9 2.3 2.9 2.5 Soybeans 2.2 2.3 2
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
Sugar Production Financial results Unit 2017 2018 2019 EURm 2017 2018 2019 Sugar production kt 463 352 302 Revenues 200 565 119 436 116 893 Sugar beet processed kt 3 077 2 472 1 950 Cost of revenues (130 972) (103 779) (107 637) Own sugar beet % 79% 60% 80% Gross profit 69 593 15 657 9 256 Gross pro
Slide 9: Sugar production, consumption and exports - Ukraine
Sugar 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 and sugar beet processing 2,0 1.8 1.7 1.8 1 600,0 capacities 1.7 1,6 1.6 1.5 1 400,0 •
Slide 10: Sugar: Key achievements and outlook
Sugar Key Ukrainian sugar producers • Preserved leadership position locally with a market share of over 20% in 2019 ASTARTA Key achievements Other 20% • Sustained high quality of sugar despite adverse weather 34% conditions and suboptimal sugar beet harvest • In 2019 high quality sugar production at
Slide 11: Soybean processing
Soybean processing Production Financial results kt 2017 2018 2019 EURk 2017 2018 2019 Soybeans processed 218 215 231 Revenues 72 713 74 290 82 718 Soybean meal output 153 158 159 Cost of revenues (64 261) (64 650) (69 536) Soybean oil output 40 41 44 Gross profit 8 452 9 640 13 182 Gross profit marg
Slide 12: Dairy
Dairy Milk production, herd and productivity Financial results 2017 2018 2019 EURk 2017 2018 2019 Milk production, kt 110 106 96 Revenues 31 795 29 309 34 603 Herd, k heads 27 27 24 Cost of revenues (23 355) (24 852)(27 692) Milk yield, kg/day 20 19 20 BA revaluation 9 869 (8 989) 8 949 Gross profit
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: 1Q20 update
1Q20 update Trade update Average Average Sales volume Sales volume % realized price realized price % (kt) (kt) (EUR/t) (EUR/t) 1Q19 1Q20 % 1Q19 1Q20 % Sugar 54 78 44% 316 352 11% Wheat 11 3 (68%) 189 166 (12%) Corn 283* 236 (17%) 153 162 5% Sunflower 12 0.1 (99%) 273 284 4% Soybean oil 14 11 (22%) 5
Slide 15: Covid-19 response
Covid-19 response Industry trends Enhanced business risk monitoring • Strict quarantine measures introduced on a country-wide • ASTARTA updated the business Risk Matrix and set up a basis exclude the agricultural industry as a key sector to regular Risk Committee to formally consider risks as they a
Slide 16: Covid-19 response
Covid-19 response Personnel Operations • Intensive communication and education campaign on COVID • ASTARTA’s assets are located across eight Ukrainian regions to promote prevention among employees providing diversification against the risk of production stops for all agricultural activities, sugar a
Slide 17: Covid-19 response
Covid-19 response Supplier and Customer relationships Finances • ASTARTA has contracted volumes and prices for the entire • ASTARTA accumulated significant financial resources up until 2019 harvest of grains and oilseeds and continues to deliver the end of the planting season (i.e. until June 2020)
Slide 18: Summary Financials
(()) ASTARTA- KYIV agri-industrial holding Summary Financials
Slide 19: Last three years highlights
Last three years highlights Revenues, EURm Investments, EURm ∑51 ∑459 ∑448 60 ∑57 14% 00 5 13 ∑372 14% 50 8 50 12% 12% 32 35 7 00 73 10% 50 22 83 40 29 ∑24 00 74 39 8% 50 141 30 5% 34 6% 206 1 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 20: Agriculture
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 20
Slide 21: Sugar
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 21
Slide 22: Soybean processing
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 22
Slide 23: Dairy
Dairy FCF for the dairy 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 23
Slide 24: Consolidated Balance sheet
Consolidated Balance sheet EURm 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Right-of-use asset (mainly land) - - - - - - - - - - - - 110 142 Biological assets 4 6 5 13 15 20 44 45 30 19 15 22 17 30 PP&E and other 33 79 79 111 148 231 244 321 237 232 265 244 277 300 Non-curr
Slide 25: 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 Revenues 68 88 123 128 219 304 353 327 352 314 369 459 372 448 Cost of revenues (55) (67) (96) (83) (128) (193) (286) (293) (268) (219) (257) (355) (324) (400) Changes in FV of BA/ 1
Slide 26: Consolidated Cash Flows
Consolidated Cash Flows EURm 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 PBIT 6 23 (11) 30 80 90 45 21 (67) 14 85 63 (16) 1 Depreciation and amortization 4 5 9 8 13 17 25 27 25 22 29 37 46 63 Gain on acquisition of subsidiaries (4) (5) (9) (0) (4) (13) (2) (12) - - (1) (0)
Slide 27: Appendix
(()) ASTARTA- KYIV agri-industrial holding Appendix
Slide 28: 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 29: 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 30: Debt profile
Debt profile Debt breakdown by currency Debt breakdown by maturity as of 31 December 2019 as of 31 December 2019 UAH denominated loan; 6% Less than 1 USD year; 28% denominated loan; 94% More than 2 years; 57% From 1 to 2 years; 15% Debt breakdown by lenders as of 31 December 2019 Working Capital Lin
Slide 31: 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 32: 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 33: 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 34: ESG focus
ESG focus • Energy consumption • Effluence and waste • Water discharge • Efficient use of recourses • Waste management Agro • Sustainability food production EUR 127 mln Ecological 32% • Communications with stakeholders • Labor safety conditions • Employee engagement, diversity and inclusion • Traini
Slide 35: Corporate social responsibility
Corporate social responsibility SOCIAL ESPONSIBILITY 2019 CSR budget CSR achievements 2019 Healthcare Repaired and equipped: • 20 paramedic and obstetric stations Other • 2 healthcare projects completed 1% Education Repaired and equipped: Healthcare • 83 schools 5% Infrastructure • 27 kindergartens
Slide 36: 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