Slide 1: Kernel Holding S.A. Company Presentation
KERNEL HOLDING S.A. CO M PA N Y P R E S E N TAT I O N January 2014
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: Company Overview
COMPANY OVERVIEW January 2014
Slide 4: Kernel at a glance
Kernel at a glance SUNFLOWER OIL FY2013 EBITDA: US$ 199 Mio, 62% of total(1) Bulk oil segment #1 oilseed crusher and exporter in Ukraine 3 Mio tons/year sunflower seed crushing capacity Bottled oil segment #1 bottled sunflower oil producer and marketer in Ukraine with 32% market share GRAI
Slide 5: FY2013 contribution by operating segment
FY2013 contribution by operating segment Revenue by segment (1) EBITDA(2) (US$ Mio / % of total revenue) (US$ Mio / % of EBITDA) US$ (4.0) / -1.2% US$ 29.3 / 1.0% US$ 182.6 / 6.1% US$ 19.4 / 6.0% US$ 25.8 / 8.0% US$ 46.4 / 1.5% US$ 12.5 / 3.9% US$ 67.7 / 21.0% US$ 972.3 / 32.4% US$ 2 797 Mio US$ 1 5
Slide 6: Segmental Review
SEGMENTAL REVIEW January 2014
Slide 7: Bulk oil segment
Bulk oil segment Kernel – No1 oilseed crusher in Ukraine with 2.6 Mio tons/year sunflower seed crushing Bulk oil sales 17% capacity (tons) of international trade 1 040 332 Kernel – 1/4 of Ukraine `s total crushing capacity Main competitors: Cargill – 10%; Creative - 10% (Kernel `s 820 987 828 37
Slide 8: Bottled oil segment
Bottled oil segment Kernel – leading bottled oil producer and marketer in Ukraine Bottled oil sales Mio liters (in million litres) Consolidated bottled oil sector 131.7 140 Kernel and Bunge supply close to half of bottled 118.0 112.4 108.2 120 oil sold in Ukraine 100.9 97.8 100 Kernel and Bunge ar
Slide 9: Grain segment
Grain segment Leading grain supply chain operator in Ukraine with 12% market share of grain & oil-bearing crops export in 2012/13 season Grain: major exporters, Extensive and well-established origination base 2012/13 season Origination effected directly at farm level through Kernel `s regional U
Slide 10: Export terminals segment
Export terminals segment TransBulkTerminal (“TBT”) 2nd largest grain terminal in Ukraine, 4 Mio tons/year grain throughput capacity Key features: 200 000 tons grain storage capacity in 38 vertical bins directly alongside berth Handles all types of grain Grain & oilseeds delivery to terminal
Slide 11: Silo services segment
Silo services segment Largest private grain silo network in Ukraine with .8 Mio tons grain storage capacity 2 Strategic location of silos in key origination areas and close to Kernel `s crushing plants All silos connected to national railway network, allowing grain shipment to port by railcar
Slide 12: Farming segment
Farming segment Kernel’s farming acreage ths.ha Prime location of farms in grain and sunflower belt of Ukraine 450 390.6 400 Kernel has been active in farming since 2002 350 Farms benefit from close location to Kernel `s grain silos and processing plants Largest landbank among listed Ukrain
Slide 13: Q1 FY2014 Results Highlights
Q1 FY2014 RESULTS HIGHLIGHTS January 2014
Slide 14: Q1 FY2014 results highlights
Q1 FY2014 results highlights Key highlights EBITDA of USD 3.0 million in Q1 FY2014, down from USD 74.8 million in Q1 FY2013, Operating profit before working capital changes was USD 11.9 million in Q1 FY2014 was the result of weak performance in the bulk oil and farming segments, while versus USD
Slide 15: Q1 FY2014 financial highlights
Q1 FY2014 financial highlights Amounts in USD million, except for EPS and ratios Q1 FY2014 Q1 FY2013 % change Revenue 412.9 515.9 (20.0%) EBITDA (1) 3.0 74.8 (96.0%) Net profit attributable to equity holders of Kernel Holding S.A. (33.8) 36.8 n/m EBITDA margin 0.7% 14.5% (13.8pp) Net margin (8.2%) 7
Slide 16: Q1 FY2014 segment results summary
Q1 FY2014 segment results summary Revenue(1), USD million EBITDA, USD million EBITDA margin, % Q1 FY2014 Q1 FY2013 % change Q1 FY2014 Q1 FY2013 % change Q1 FY2014 Q1 FY2013 Bottled oil 33.4 43.6 (23.4%) 3.7 7.5 (50.0%) 11.2% 17.1% Bulk oil 116.5 291.7 (60.1%) 0.8 38.1 (98.0%) 0.7% 13.1% Export termi
Slide 17: Bulk and bottled oil segments performance
Bulk and bottled oil segments performance Bulk oil segment Sunflower seed crush, tons The below average sunflower seed harvest in 2012/13 resulted in the low availability 800 000 of sunflower seed at the end of the marketing year and downwardly affected crushing 700 000 plant utilization in the se
Slide 18: Grain, silo and export terminals segments performance
Grain, silo and export terminals segments performance Grain segment Grain sales, tons Grain sales increased 73.6% y-o-y to 884,701 tons in Q1 FY2014, a record volume for the first quarter. While Ukrainian farmers were reluctant to sell their crops at the rate that they were 1 200 000 FY2012 FY2013
Slide 19: Farming segment performance
Farming segment performance Farming segment Crop yields, t/ha(1), net First quarter sales in the farming segment consisted primarily of wheat (9% of total 8.0 FY2012 FY2013 FY2014 7.1 acreage) and minor volumes of other crops, while the company’s major crops are har- 7.0 vested mostly during the s
Slide 20: Q1 FY2014 balance sheet highlights
Q1 FY2014 balance sheet highlights Amounts in USD millions 30 September 2013 30 September 2012 Invested Capital Cash & cash equivalents 77.7 133.4 Net trade accounts receivable 139.4 149.6 Inventory 327.6 721.4 of which: readily marketable inventories 276.3 684.5 Biological assets 209.9 78.5 Other c
Slide 21: Q1 FY2014 cash flow highlights
Q1 FY2014 cash flow highlights Amounts in USD millions Q1 FY2014 Q1 FY2013 Operating profit before working capital changes 11.9 91.7 Changes in working capital (15.8) (249.6) Cash obtained from/ (used in) operating activities (3.9) (157.9) Finance costs paid (13.0) (15.4) Income tax paid (18.7) (8.9
Slide 22: Q1 FY2014 liquidity position & credit metrics
Q1 FY2014 liquidity position & credit metrics Amounts in USD millions, except ratios 30 September 2013 30 September 2012 Gross interest-bearing debt 789.5 1,046.2 Cash 77.7 133.4 Net interest-bearing debt 711.8 912.8 Readily marketable inventories 276.3 684.5 Adjusted net financial debt (1) 435.5 22
Slide 23: Financial Highlights FY2013
FINANCIAL HIGHLIGHTS FY2013 January 2014
Slide 24: FY2013 financial highlights
FY2013 financial highlights USD million except ratios and EPS FY2013 FY2012 y-o-y Income statement highlights Revenue 2 796.8 2 071.8 35.0% EBITDA 287.5 318.8 (9.8%) Net profit attributable to equity holders of Kernel Holding S.A. 111.3 206.7 (46.2%) EBITDA margin 10.3% 15.4% (4.9pp) Net margin 4.0%
Slide 25: Segmental results
Segmental results Revenue(1) EBITDA(2) EBITDA(2) margin Tonnage(3) FY2013 FY2012 y-o-y FY2013 FY2012 y-o-y FY2013 FY2012 FY2013 FY2012 y-o-y Bottled sunflower oil 182.6 203.0 (10.0%) 25.8 31.8 (19.0%) 14.1% 15.7% 108 227 131 694 (17.8%) Sunflower oil in bulk 1 527.7 1 191.6 28.2% 173.2 166.6 3.9% 11
Slide 26: Financial Highlights FY2006 – FY2013
FINANCIAL HIGHLIGHTS FY2006 – FY2013 January 2014
Slide 27: Income statement FY2006 – FY2013
Income statement FY2006 – FY2013 (1) Amounts in USD million, except for EPS and margins FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Revenue 215.2 350.4 663.1 1 047.1 1 020.5 1 899.1 2 071.8 2 796.8 EBITDA (2) 17.0 46.4 123.2 190.1 190.0 309.6 318.8 287.5 EBIT 12.0 38.6 111.6 166.6 167.5
Slide 28: Balance sheet FY2006 – FY2012
Balance sheet FY2006 – FY2012 (1) Amounts in USD million FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Invested Capital Cash & cash equivalents 6.4 25.3 88.5 129.3 59.5 115.9 82.5 78.8 Net trade accounts receivable 9.1 9.8 48.7 32.4 65.5 111.6 146.4 149.6 Inventory 32.3 40.2 144.7 99.1 147
Slide 29: Cash flow FY2006 – FY2012
Cash flow FY2006 – FY2012 (1) Amounts in USD million FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Operating profit before working capital changes 16.6 45.4 116.1 188.2 205.7 275.2 291.4 260.4 Changes in working capital (35.8) (14.7) (210.3) (25.0) (97.4) (180.1) (242.1) 156.9 Cash obtaine
Slide 30: Credit metrics FY2006 – FY2012
Credit metrics FY2006 – FY2012 (1) Amounts in USD million, except ratios FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Gross interest-bearing debt 93.3 164.3 224.8 292.6 345.1 422.0 698.3 734.2 Cash 6.4 25.3 88.5 129.3 59.5 115.9 82.5 78.8 Net interest-bearing debt 87.0 139.1 136.2 163.3 2
Slide 31: Appendices
APPENDICES KERNEL anuary 2014
Slide 32: Ukraine: market leader in production and export of sunflower oil
Ukraine: market leader in production and export of sunflower oil Major producing regions, season 2013/14 Sunflower seed yield EU - 27 Russia (t/ha), 5Y average 8.7 Mio tons 9.7 Mio tons sunflower seed production sunflower seed production 2.9 Mio tons 3.9 Mio tons sunflower oil production sunflower o
Slide 33: Ukraine: global leader in sunflower oil trade and major exporter of grain
Ukraine: global leader in sunflower oil trade and major exporter of grain Ukraine accounts for half of global sunflower oil export Ukrainian sunflower oil exports by destination, season 2012/13 Ukraine is the world’s largest exporter of sunflower oil, accounting for half of global sunflower oil ex
Slide 34: IR Contact
IR Contact • Yuriy Kovalchuk Investor Relations Director investor_relations@kernel.ua • Yegor Samusenko Investor Relations Manager y.samusenko@kernel.ua Tel.: (+38-044) 461-88-01, ext. 70-88 January 2014 34