AB Akola Group · OMXVSE:AKO1L
AB Akola — AB Linas Agro Group — Conference Presentation (November 2021)
27 slides from AB Akola's conference presentation, Nov 4, 2021
Slide 1: Overview of activities & finance for FY 2020/2021
AB Linas Agro Group Overview of activities & finance for FY 2020/2021 4th of November 2021 1
Slide 2: Today's presenter
Today‘s presenter Mažvydas Šileika Finance Director & Contact for Investors With AB Linas Agro Group since 2020 10 years professional experience including Banking & Shipping industries Master’s degree in Shipping, Trade and Finance / Cass Business School Bachelor’s degree in Management / University
Slide 3: We are an international vertically integrated agribusiness and food Group
We are international vertically integrated 1991 2010 2,102 Founded Listed employees agribusiness and food Group since 942 33.5 149 mEUR mEUR mEUR Consolidated Consolidated Market revenue EBITDA Capitalisation 340 18.3 3.16 ktons kha m tons products& agricultural grain& food Grain storage Arable land
Slide 4: Key milestones becoming the Group we are today
Key milestones becoming the Group we are today 250000 stepping in agri- 1000 innovation, development 942 mEUR of precision farming systems 900 200000 800 starting seed expanding fertiliser production… operation 700 expanding activity with agricultural machinery launching grain 592 150000 sales, seed
Slide 5: Linas Agro Group at the end of the reporting period in brief
Linas Agro Group at the end of the reporting period in brief AB „Linas Agro Group“ controlled 42 companies* in LT, LV, EE, UA Grain, feedstuff Agricultural Food Agri-machinery & and agri-inputs production agri-innovation Within FY2020/2021: - Linas Agro OU - trading company in 4X companies 7X compan
Slide 6: Key segments
Key segments Products & services Agricultural Grain & feedstuff Food for farming production handling & merchandising products Sales of seeds, plant protection A whole cycle poultry business incl. Cultivation of cereals, oilseed rape, Trade in grain, oilseeds and feedstuffs, products, fertilizers, ag
Slide 7: Financial highlights of FY 2020/21
Financial highlights of FY 2020/21 Fiscal year of the company starts on July 1st 7
Slide 8: Record high revenues of the reporting period
Record high revenues of the reporting period Dynamics of gross profitability & revenue per segment brief 9.3% 11.2% 7.9% 7.0% 7.3% 8.4% 6.2% 6.2% 6.7% 6.8% 7.2% 7.2% 6.9% 5.5% 4.2% 4.6% 5.7% 4.1% 5.4% Gross profit, % 3.9% 1000 FY 942 Q3 800 743 H1 712 645 658 634 600 526 475 476 448 449 Q1 400 325 3
Slide 9: Combination of boosted revenues & stable OPEX
Combination of boosted revenues & stable OPEX Dynamics of operating profitability brief Operating profit, % 3.9% 4.3% 2.8% 2.1% 2.6% 1.3% 1.0% 1.9% 1.5% 2.3% 2.1% 0.9% 1.2% 1.0% 1.1% 0.6% 0.7% FY 0.8% -0.2% -0.5% 38 38 40 35 35 34 35 Q3 30 27 26 27 19,6 H1 25 25 25 12,1 9,6 14,8 18 18 19 18 18 20 Q1
Slide 10: Firm Balance Sheet & thorough WC management
Firm Balance Sheet & thorough WC management in brief S/T debt & inventory proportion Total assets* 250 Net S/T lines mEUR RMI EUR 421m in total: 200 181 Intangible assets EUR 2m Fixed assets 128 Fixed assets EUR 129m 150 128 114 108 108 103 Other EUR 39m mEUR 106 Current assets 100 212 83 234 Curren
Slide 11: Creating value to shareholders
Creating value to shareholders in brief ROA, ROE, ROCE, % 7.2 • After loss making year (2018/19) the ratios are continuously rebounding and 6.5 even exceeding historical levels 5.5 5.0 5.3 • 5Y average, excluding 2018/19: − ROA 2.3% 4.3 4.8 − ROE 4.8% 2.8 2.9 3.4 − ROCE 3.8% 2.4 2.4 2.5 2.4 • High f
Slide 12: Putting aside for the "big purchase"
Putting aside for the “big purchase” Generated cash flow, mEUR & alternatives for it’s allocation 7.2 13.6 3.7x Net-Debt/EBITDA* (</= 6.5x) Improving credit (PY 5.8x) 1.1 -12.1 1 metrics 1.5x 29.4 Net-L/T-Debt/EBITDA* (</= 2.5x) (PY 2.0x) 26.4 -9.2 -3.6 Majority of accrued CF allocated 2 Investments
Slide 13: Generated returns to shareholders
Generated returns to shareholders b Historically paid dividends and pay-out ratios The share of the company Dividends paid Net profit for the year Pay-out ratio (secondary axis) 14.2 35% 14 31% Ordinary shares 158,940,398 30% 12 10 130 Market capitalisation, 25% 10 9.5 mEUR 8.4 9.19 20% 8 P/E ratio
Slide 14: Products and services for farming
Fe B Products Mg N P Zn and services Certified seed Fertilizers Plant protection Micronutrients for farming products Since 1993 Grain storage Agricultural Spare parts and Smart farming facilities and farm machinery service systems equipment 14
Slide 15: Key data and latest developments
Key data and latest developments • During FY 2020/21: a) acquisition of intelligent farming start-up GeoFace & launch of the system in Lithuania and Latvia b) seed warehouse construction (successfully finished by Sep-2021) c) upward sales trend in all the positions with strongest growth in agricultu
Slide 16: Agricultural production
Agricultural production Since 2003 Cereals growing Rapeseed Sugar beet Milk Beef cattle growing growing production rearing 16
Slide 17: Key data and latest developments
Key data and latest developments • During FY 2020/21: a) segment companies sold 30% more crop production compared to the very same period last year b) revenue from milk sales grew 5%, positively impacted by continuous gradual milk purchase price recovery (approx. 4% increase since the beginning of t
Slide 18: Grain & feedstuff handling & merchandising
Grain & feedstuff handling & Grain Oilseed Feedstuff merchandising Since 1991 Ecologic grain Grain storage and Logistic services and oilseeds preparation 18
Slide 19: Key data and latest developments
Key data and latest developments • During FY 2020/21: a) Linas Agro OU - trading company in Estonia was founded b) continuous reorganization of elevator companies (aim to achieve full consolidation of three elevator companies in LT) c) increased storage capacity at ports (+60 ktons) d) strong harves
Slide 20: Food products
Food Full manufacturing cycle products Since 2013 Feed mill plant Parents stock Chicken Broiler Poultry from locally meat products laid eggs 20
Slide 21: Key data and latest developments
Key data and latest developments • During FY 2020/21: a) continuing COVID-19 pandemic and quarantine restrictions hit hard on HORECA sector, resulting in overproduction and pushing down average price of poultry meat b) conversely – price of raw materials used for chicken feed (corn, wheat, soybeans,
Slide 22: Post acquisition Linas Agro Group
Post acquisition Linas Agro Group since 15th of July, 2021 22
Slide 23: 79 companies controlled by AB Linas Agro Group
Almost 2x more 79 companies* in LT, LV, EE, UA, BY, PL, RU, NL, controlled by AB Linas Agro Group >5,600 employees Grain, feedstuff Agricultural Agri-machinery & Food and Agro inputs production agri-innovation Other 4 + 8 7 + 0 5 + 9 3 + 0 1 + 7 X 12 companies 7X companies 14X companies 3 3 companie
Slide 24: Re-shaped LNA
Re-shaped LNA + Focused to smooth integration: mEUR Sales 942 697 1,640 • expected within 2Y • KGG financial year aligned with LNA seasonal year EBITDA 31 33 63.5 • KGG risk policies aligned with LNA practises • KGG brands to be kept capitalising on through the years built Net profit 15.6 5.9 21.5 r
Slide 25: Valuation
Valuation Merger benefiting the LNA shareholders + Market capitalisation / 152 73 225 mEUR Equity value Net Debt 108 70 224 Enterprise value 260 143 449 EBITDA 33.5 33 66.5 EV/EBITDA 7.8x 4.3x 6.8x Market capitalisation, equity value – as of 15/07/2021 LNA – financial information dated 2021.06.30; K
Slide 26: Drivers for the coming year & key developments after reporting
Drivers for the … & key developments coming year… after reporting EUR million • Obtaining synergies of post merger LNA • 12th of July, 2021 – release of initial report by Enlight Research, continuing with • Sustainability focus updates twice a year as per concluded Research Coverage Agreement – Dete
Slide 27: Thank you
Thank you 27
AB Linas Agro Group — Conference Presentation (November 2021) on 6ix