Slide 1: ASTARTA 9M19 operating and financial results
ASTARTA 9M19 operating and financial results November 2019
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: 9M19 Highlights
9M19 Highlights Summary P&L EURk 9M18 9M19 • Consolidated revenues increased by 1/3 y-o-y to EUR334m Revenues, including 253 451 333 642 in the 9M19 on back of strong growth in the agricultural Agriculture 76 101 155 454 segment (its revenues grew two-fold to EUR155m) Sugar 96 273 86 809 • Key growt
Slide 4: 9M19 Highlights: Summary Cash Flows and Balance Sheet
9M19 Highlights Summary Cash Flows Summary Balance Sheet EURk 9M18 9M19 EURk YE18 9M19 Pre-tax income 15 173 1 774 Right-of-use asset (land) 80 723 104 368 D&A 29 068 39 947 Biological assets (non-current) 17 064 23 026 Financial interest expenses, net 8 381 12 875 PP&E and other 280 815 321 049 Inv
Slide 5: Agriculture
Agriculture Production of key crops Financial results kt 2016 2017 2018 2019 EURm 2016 2017 2018 9M18 9M19 Corn 415 339 622harvesting Revenues 84 366 140 918 126 765 76 101 155 454 Wheat 313 237 242 255 Cost of revenues (67 361)(125 324) (111 772) (68 062)(144 431) Sunseeds 72 73 117 90 BA revaluati
Slide 6: Agriculture: Achievements and yields
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* 6,8* Wheat 5,8 4,2 5 4,1 4,7 3,7 5,1 4,2 Sunseeds 2,6 2,2 2,3 2 2,9 2,3 2,9 2,4 Soybeans 2,2 2,2 2,2
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 400 35% 350 40% 350 30% 300 35% 300 25% 250 30% 250 25% 20% 200 200 20% 15% 150 150 15% 100 10% 100 10% 50 5% 50 5% 0 0% 0 0% 1991 1993 1995 1997 1999 2001 2003 2005 200
Slide 8: Sugar
Sugar Production Financial results Unit 2016 2017 2018 EURm 2016 2017 2018 9M18 9M19 Sugar production kt 505 463 352 Revenues 174 519 200 565 119 436 96 273 86 809 Own sugar beet % 66% 79% 60% Cost of revenues (105 644) (130 972) (103 779) (83 618) (80 207) Sugar beet processed kt 3,443 3,077 2,472
Slide 9: Sugar market
Sugar market Sugar production, consumption and exports - Ukraine mt kt • Local sugar consumption dropped by 1/3 to an estimated 1.3mt since 2013 2,5 700 • The domestic market is slowily adjusting 600 2,0 to lower consumption volume by reducing 500 sugar beet planting area and sugar beet 1,5 1.8 400
Slide 10: Sugar: Key achievements and Outlook
Sugar • Preserved leadership position on the Ukrainian sugar market with a market share at 20-30% Key achievements • Sustained high quality of sugar despite adverse weather conditions • High quality sugar production in 2017-2018 was 87% from total volume of sugar produced compared to 71% in 2015- 20
Slide 11: Soybean processing: Key achievements & Outlook
Soybean processing Soybean products - output Financial results kt 2016 2017 2018 9M18 9M19 EURm 2016 2017 2018 9M18 9M19 Soybean meal 158 153 158 114 121 Revenues 74 951 72 713 74 290 53 425 61 545 Soybean oil 39 40 41 29 32 Cost of revenues (53 447) (64 261) (64 650) (46 553) (51 926) Gross profit
Slide 12: Dairy: Key achievements & Outlook
Dairy Financial results Milk production, herd and productivity EURm 2016 2017 2018 9M18 9M19 2016 2017 2018 9M18 9M19 Revenues 24 827 31 795 29 309 21 331 24 947 Milk production, kt 107 110 106 80 74 Cost of revenues (20 341) (23 355) (24 852) (18 307)(20 211) Herd, k heads 30 27 27 26 24 BA revalua
Slide 13: Strategy and outlook
Strategy and outlook • Release working capital and reduce capex to Financial goals stable 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 a
Slide 14: Summary Financials
(()) ASTARTA- KYIV agri-industrial holding Summary Financials
Slide 15: Last four years highlights
Last four years highlights Revenues, EURm ∑459 Investments, EURm ∑57 500 60100% ∑49 14% ∑369 13 ∑372 3 13% ∑314 32 2 12% 50 12% 400 10 23 80% 1 6 73 59% 10% 25 29 56% 40 ∑26 24 300 75 51% 60% 7% 8% 51 74 30 ∑8 1 39 36% 141 0 34 6% 200 84 40% 82 20 3% 127 17 4% 100 1 151 175 201 1020% 2% 119 5 8 13 1
Slide 16: Agriculture
Agriculture FCF of the agricultural segment for 2006 – 2018 100 000 250 80 000 200 60 000 40 000 150 20 000 100 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 50 (20 000) (40 000) - EBITDA Capex FCF Revenue per ton of grains&oilseeds sold (rhs) Average revenue per t of product so
Slide 17: Sugar
Sugar FCF of the sugar segment for 2006 - 2018 80 000 900 800 60 000 700 40 000 600 500 20 000 400 0 300 2 006 2 007 2 008 2 009 2 010 2 011 2 012 2 013 2 014 2 015 2 016 2 017 2 018 200 (20 000) 100 (40 000) - EBITDA Capex FCF Revenue per ton of sugar sold (rhs) Average revenue per ton of product s
Slide 18: Soybean processing
Soybean processing FCF of the soybean processing segment for 2013 - 2018 25 000 450 20 000 400 15 000 10 000 350 5 000 300 0 (5 000) 2013 2014 2015 2016 2017 2018 250 (10 000) 200 (15 000) 150 (20 000) (25 000) 100 EBITDA Capex FCF Revenue per ton of soya products sold Average revenue per ton of pro
Slide 19: Dairy
Dairy FCF for the dairy segment for 2006 - 2018 450 22 000 400 350 17 000 300 12 000 250 200 7 000 150 100 2 000 50 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (3 000) - EBITDA Capex FCF Revenue per ton of milk sold Average revenue per ton of product sold (rhs) 2006-2018 Units A
Slide 20: Consolidated Balance sheet
Consolidated Balance sheet EURk 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Right-of-use asset - - - - - - - - - - - - 80 723 Biological assets 3 701 6 380 5 150 12 747 14 926 20 148 43 961 45 497 30 397 19 291 15 209 22 437 17 064 PP&E and other 32 714 79 147 78 513 111 096 147
Slide 21: Consolidated statement of profit and loss
Consolidated statement of profit and loss EURk 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Revenues 68 051 87 747 123 382 128 239 219 330 303 587 352 582 327 042 351 902 313 997 368 891 458 601 372 222 Cost of revenues (55 295) (66 867) (96 262) (82 638) (128 319) (193 480) (285
Slide 22: Consolidated Cash Flows
Consolidated Cash Flows EURk 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 PBIT 5 507 22 964 (10 803) 29 874 79 626 89 996 44 849 21 223 (67 184) 14 037 85 068 62 693 (16 939) Depreciation and amortization 3 875 5 043 9 450 8 178 13 198 17 474 25 198 27 133 25 367 22 101 28 904 36
Slide 23: Appendix
(()) ASTARTA- KYIV agri-industrial holding Appendix
Slide 24: ASTARTA key assets
ASTARTA key assets Originally founded as a sugar business 26 years ago, now is one of the top Ukrainian producers and exporters of grains; one of the leading sugar beet and soybean processor, milk farming Sugar • 7 Sugar plants in Ukraine, daily KYIV capacity - 39kt of sugar beet • 1/3 of the local
Slide 25: Valuation and capital structure
Valuation and capital structure EV 9M19 versus 9M18 11,1 EV 2016-2018 500 12,0 500 10 450 10,0 7,5 400 400 8,0 350 175 114 8,0 134 300 7,7 300 307 308 6,0 5,2 250 6,0 5,6 200 3,0 3,6 4,0 200 150 4,0 295 3,4 266 100 130 2,0 100 257 2,0 146 1,0 1,1 50 0 0,0 0 0,0 9M2018 9M2019 2016 2017 2018 Net debt
Slide 26: FV of biological assets
FV of biological assets Crops calendar Mar Apr May Jul Aug Sep Oct Nov Dec Assets in agriculture Sugar beets Winter crops Biological assets Agricultural produce Corn Agriculture Agriculture Sunflower seeds Non-current Current produce produce Livestock unharvested Soybeans crops at the point of subse
Slide 27: Sustainability framework
Sustainability framework • Compliance with the regulatory requirements of Ukrainian legislation in industrial safety, labour and environmental protection • Compliance with international standards in social and environment spheres • Determination of environmental aspects and risks when ASTARTA is a m
Slide 28: ESG focus
ESG focus • Energy consumption • Effluence and waste • Water discharge • Efficient use of recourses Agro • Waste management EUR 127 mln •Sustainability food production Ecological 32% • Communications with stakeholders • Labor safety conditions • Employee engagement, diversity and inclusion • Trainin
Slide 29: Corporate social responsibility
Corporate social responsibility SOCIAL ESPONSIBILITY CSR budget Water Other Key considerations systems 1% 10% Medicine Communities 35% • Corporate social responsibility (CSR) is a top priority of ASTARTA’s sustainable 13% development • Over EUR 1.4m in CSR programs in Culture 2018 13% Education 28%