Astarta Holding Plc · GPW:AST
Astarta — 9M20 Earnings Presentation
30 slides from Astarta's earnings presentation, Nov 10, 2020
Slide 1: 9M20 operating and financial results
9M20 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: 9M20 Highlights
9M20 HIGHLIGHTS Summary P&L EURk 9M19 9M20 • ASTARTA’s consolidated revenues amounted to EUR291m in 9M20, Revenues, including 325 711 290 548 11% down y-o-y, on lower sales volumes of grains and soybean Agriculture 147 522 121 287 products Sugar production 86 809 87 093 Soybean processing 61 545 53
Slide 4: 9M20 Highlights: Cash Flows and Balance Sheet
9M20 HIGHLIGHTS Summary Сash Flows Summary Balance Sheet EURk 9M19 9M20 EURk 9M19 YE19 9M20 Pre-tax income (608) (4 739) Right-of-use asset (mainly land) 140 894 142 035 107 227 D&A 45 678 43 497 Biological assets (non-current) 23 026 30 011 23 559 Financial interest expenses, net 13 217 6 898 PP&E
Slide 5: Agriculture
AGRICULTURE Sales volumes of key crops Financial results kt 2017 2018 2019 9M19 9M20 EURk 2017 2018 2019 9M19 9M20 Corn 394 358 714 474 336 Revenues, including 140 918 126 765 205 712 147 522 121 287 Wheat 383 270 266 233 258 Corn 55 948 52 846 109 973 73 971 50 264 Sunseeds 55 78 103 51 51 Wheat 54
Slide 6: Agriculture: Achievements
AGRICULTURE Output of key crops, gross • Among Top 5 agricultural land banks in Ukraine with over kt 2018 2019 2020 230kha Corn 622 581 In progress • Harvest of grain and oilseed crops in excess of 1.0mt in Wheat 242 256 230 2018 and 2019 Achievements Sunseeds 117 90 89 • The largest sugar beet grow
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 400 Ending stocks Stock to use 35% Ending stocks Stock to use 350 50% 350 30% 300 300 40% 25% 250 250 30% 20% 200 200 15% 150 20% 150 100 10% 100 5% 10% 50 50 0 0% 0 0% 04/05
Slide 8: Sugar Production
SUGAR PRODUCTION Production Financial results Unit 2017 2018 2019 EURk 2017 2018 2019 9M19 9M20 Sugar production kt 463 352 302 Revenues 200 565 119 436 116 893 86 809 87 093 Sugar beet processed kt 3 077 2 472 1 950 Cost of sales (130 972)(103 779)(107 637) (80 207) (72 046) Own sugar beet % 79% 60
Slide 9: Sugar Production: Ukraine Market
SUGAR PRODUCTION Sugar production, consumption and exports, Ukraine • In 2020, the Ukrainian sugar production is forecast at 1.2mt with 33 running 2.3 sugar plants according to Agroportal 2,5 2 000,0 2.2 • To-date, the sector’s sugar output totaled 0.6mt (almost half of the 2019 2.1 2.1 2.1 1 800,0
Slide 10: Sugar Production: Key Achievements
SUGAR PRODUCTION • Preserved leadership position locally with a market share of over 20% in 2019 Key achievements • According to Ukrsugar, the Top-5 Ukrainian sugar producers: ASTARTA – 20.4%, Radekhivskyi Sugar - 20.0%, Ukrprominvest – 15.5%, Svitanok – 6.0%, A’SPIK – 4.8% Sustained high quality of
Slide 11: Soybean Processing
SOYBEAN PROCESSING Production Financial results kt 2017 2018 2019 9M19 9M20 EURk 2017 2018 2019 9M19 9M20 Soybean processed 218 215 231 166 144 Revenues, including 72 713 74 290 82 718 61 545 53 555 Soybean meal 153 158 159 121 104 Soybean meal 46 512 48 081 53 975 39 879 32 974 Soybean oil 40 41 44
Slide 12: Cattle Farming
CATTLE FARMING Milk production, herd and productivity Financial results 2017 2018 2019 9M19 9M20 EURk 2017 2018 2019 9M19 9M20 Milk production, kt 110 106 96 74 70 Revenues 31 795 29 309 34 603 24 947 25 043 Herd, k heads 27 27 24 24 22 Cost of sales (23 355) (24 852) (27 692) (20 211) (19 448) Milk
Slide 13: Strategy and Outlook
STRATEGY AND OUTLOOK • Active working capital management and capex at maintenance Financial goals levels while sugar product margins remain historically low and weather poses challenges for agricultural activities • Further deleveraging • Wide ranging cost cutting measures to reduce fixed and variab
Slide 14: Summary Financials
SUMMARY FINANCIALS 14
Slide 15: Last Three Years Highlights
LAST THREE YEARS HIGHLIGHTS Revenues, EURm Investments, EURm ∑459 ∑448 ∑57 ∑372 ∑51 16% 12 7 5 12% 14% 32 14% 35 7 73 23 83 12% 29 ∑24 10% 141 74 39 8% 206 34 127 2 6% 5% 4% 201 21 1 119 117 13 2% 10 0% 2017 2018 2019 2017 2018 2019 Sugar Agriculture Soybean processing Cattle farming Other Sugar Agr
Slide 16: Agriculture: FCF 2006-2019
AGRICULTURE FCF of the agricultural segment for 2006 – 2019 100 250 80 200 60 40 150 20 100 - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 - 20 50 - 40 EBITDA, EURm Capex, EURm - 60 FCF, EURm Average revenue per ton of product sold (rhs), EUR - Revenue per ton of product sol
Slide 17: Sugar: FCF 2006-2019
SUGAR FCF of the sugar segment for 2006 – 2019 80 900 800 60 700 40 600 500 20 400 - 300 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 200 -20 100 -40 EBITDA, EURm Capex, EURm 0 FCF, EURm Average revenue per ton of product sold (rhs), EUR Revenue per ton of product sold (rhs)
Slide 18: Soybean Processing: FCF 2006-2019
SOYBEAN PROCESSING FCF of the soybean processing segment for 2006 – 2019 25 450 20 400 15 10 350 5 300 - (5) 2013 2014 2015 2016 2017 2018 2019 250 (10) 200 (15) 150 (20) (25) 100 EBITDA, EURm Capex, EURm FCF, EURm Average revenue per ton of product sold (rhs), EUR Revenue per ton of product sold (r
Slide 19: Cattle Farming: FCF 2006-2019
CATTLE FARMING FCF of the cattle farming segment for 2006 – 2019 20 450 400 15 350 10 300 250 5 200 - 150 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 100 -5 50 EBITDA, EURm Capex, EURm - 10 FCF, EURm Average revenue per ton of product sold (rhs), EUR - Revenue per ton of pr
Slide 20: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET EURm 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9M19 9M20 Right-of-use asset (mainly - - - - - - - - - - - - 110 142 141 107 land) Biological assets 4 6 5 13 15 20 44 45 30 19 15 22 17 30 23 24 PP&E and other 33 79 79 111 148 231 244 321 237 232
Slide 21: 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 9M19 9M20 Revenues 68 88 123 128 219 304 353 327 352 314 369 459 372 448 326 291 Cost of sales (55) (67) (96) (83) (128) (193) (286) (293) (268) (219) (257) (355) (324) (400) (293) (2
Slide 22: Consolidated Cash Flows
CONSOLIDATED CASH FLOWS EURm 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9M19 9M20 PBIT 6 23 (11) 30 80 90 45 21 (67) 14 85 63 (16) 1 (1) (5) Depreciation and amortization 4 5 9 8 13 17 25 27 25 22 29 37 46 63 46 43 Gain on acquisition of subsidiaries (4) (5) (9) (0) (4) (1
Slide 23: Appendix
APPENDIX 23
Slide 24: ASTARTA – Value Chain
ASTARTA – VALUE CHAIN Crop growing Storage, Handling & Logistics Processing Primary agriculture Storage & Handling Sugar • Among Ukraine’s Top 5 agriproducers by land • 7 grain and oilseeds silos with • 20%-35% share of the local sugar bank and production storage capacity – 550kt market by consumpti
Slide 25: Valuation and Capital Structure
VALUATION AND CAPITAL STRUCTURE EV 2017-2019 8 6.8 7 6 4.8 4.7 5 3.7 3.5 134 4 94 3 309 104 139 2 1.1 220 136 130 1 2017 2018 2019 0 Net financial debt Lease liabilities Mcap Net debt/EBITDA EV/EBITDA Equity Coverage Top 10 shareholders Board of Directors Name Share Director Position Background IPOP
Slide 26: Debt Profile
DEBT PROFILE Debt breakdown by currency Debt breakdown by maturity as of 30 September 2020 as of 30 September 2020 contractual maturity UAH Less than 1 denominated year; 10% loans, 3% From 1 to 2 years; 7% EUR87m EUR87m USD More than denominated 2 years; loans, 97% 83% Debt breakdown by lenders Work
Slide 27: 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 28: 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 ASTARTA is a member of the ▪ Determination of environmental aspects an
Slide 29: Key ESG Facts
KEY ESG FACTS Energy consumption Waste by disposal method Water consumption, m3/t of s.b. Gas, m3/t of s.b Disel, kg/ha Other; 0.05% Ecological Reuse; Recycling; 0.9 85 67% 75 74 33% 0.85 0.82 24 23 23 2017 2018 2019 2017 2018 2019 Employees by gender Lost day rate CSR budget, EURm Social 6167 4669
Slide 30: FV of Biological Assets
FV OF BIOLOGICAL ASSETS Crops calendar Mar Apr May Jun Jul Aug Sept Oct Nov Dec Assets in agriculture Sugar beets Winter crops Biological assets Agricultural produce Corn D Agriculture Agriculture Sunflower Non-current Current produce produce at D Livestock unharvested the point subsequent seeds cro