Kernel Holding S.a. · GPW:KER
Kernel — H1 2021 Earnings Presentation
28 slides from Kernel's earnings presentation, February 2021
Slide 1: H1 FY2021 results and company presentation
Kernel Holding S.A. H1 FY2021 results and company presentation February 2021
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: Content
Content 1. Q2 FY2021 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 4: 1.1 Q2 FY2021 highlights
Q2 FY2021 results and results and Balanced outlook outlook Kernel today growth strategy Financials 1.1 Q2 FY2021 highlights US$ million except EPS Q2 FY20 Q2 FY21 y-o-y H1 FY20 H1 FY21 y-o-y ◼ Revenue 29% y-o-y to US$ 1,327m driven by Avere trading activities, and Income statement highlights growi
Slide 5: 1.2 Segment results
Q2 FY2021 results and results and Balanced outlook outlook Kernel today growth strategy Financials 1.2 Segment results Segment volumes, m tons EBITDA margin EBITDA, US$ m US$ / t of oil sold 3.4 3.5 100 Oilseed 3.1 3.2 91 152 3.0 83 145 Processing 67 109 54 100 1.6 1.6 77 1.4 1.5 1.2 FY17 FY18 FY19
Slide 6: 1.3 Segments results and harvest update
Q2 FY2021 resultsand results and Balanced outlook outlook Kernel today growth strategy Financials 1.3 Segments results and harvest update Segments results Oilseed Processing segment Revenue, US$ m EBITDA, US$ m Volume, k t EBITDA margin, US$ / t 1 2 ◼ EBITDA margin 50% y-o-y to US$ 56 per ton of o
Slide 7: 1.4 IFRS 16 impact
Q2 FY2021 resultsand results and Balanced outlook outlook Kernel today growth strategy Financials 1.4 IFRS 16 impact ◼ Starting from Q1 FY2020, Kernel introduced IFRS 16 Leases with application of retrospective approach and did not restate comparatives, as permitted under the transitional provisions
Slide 8: 1.5 Outlook for FY2021
Q2 FY2021 results and results and Balanced outlook outlook Kernel today growth strategy Financials 1.5 Outlook for FY2021 ◼ Full year EBITDA margin is expected at US$ 45-55 per ton of oil sold, not accounting for earnings from the renewable energy Oilseed business. Processing ◼ We expect to process
Slide 9: Content
Content 1. Q2 FY2021 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 10: 2.1 Kernel today
Q2 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.1 Kernel today Oilseed Processing segment Key financials FY2017 FY2018 FY2019 FY2020 LTM EBITDA 1, US$ million ◼ #1 sunflower oil producer (7% of global production) and Revenue US$ m 2,169 2,403 3,960 4,107
Slide 11: 2.2 What we do
Q2 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.2 What we do 6 Oilseed processing 1 Farming ◼ #1 sunflower oil producer (7% of global production) and exporter ◼ #1 crop producer in Ukraine, 510k ha of (15% of global export) in the world leasehold farmlan
Slide 12: 2.3 Efficient and well-invested asset base
Q2 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.3 Efficient and well-invested asset base Sunflower seed crushing capacity, thousand tons per year Poltava Grain transshipment capacity, thousand tons per year 475 Vovchansk 356 Starokostiantyniv Prykolotne
Slide 13: 2.4 Kernel's key milestones
Q2 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.4 Kernel’s key milestones Asset-light Acquisition of IPO & listing on Extending oilseed • Entering the Russian market by Exit of highly Acquisition of • Active • Divestment an export platform sunflower oil
Slide 14: 2.5 Oilseed Processing segment
Q2 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.5 Oilseed Processing segment LTM Segment performance Profitability drivers and FY2021 outlook Segment volumes million tons ◼ Record oilseed processing volumes: 1 Ukraine sunflower seed harvest million tons
Slide 15: 2.6 Infrastructure and Trading segment
Q2 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.6 Infrastructure and Trading segment LTM EBITDA Segment performance Profitability drivers and FY2021 outlook Segment volumes Grain supply in Ukraine million tons ◼ Record grain export volumes from Ukraine 1
Slide 16: 2.7 Farming segment
Q2 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.7 Farming segment LTM EBITDA Segment performance Profitability drivers and FY2021 outlook Kernel’s key crop production 596 ◼ 501k ha harvested in FY2021 1 Ukraine corn and wheat prices, 529 513 501 US$ per
Slide 17: 2.8 Credit highlights
Q2 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.8 Credit highlights Credit portfolio as of 31 December 2020, US$ m Kernel Eurobonds mid-YTM, % Amount Undrawn facilities / 2022 8.75% bond 2024 6.5% bond 2027 6.75% bond outstanding Limit Interest rate Matu
Slide 18: Content
Content 1. Q2 FY2021 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 19: 3.1 Kernel's mid-term strategy
Q2 FY2021 Balanced results and Balanced growth outlook Kernel today growth strategy strategy Financials 3.1 Kernel’s mid-term strategy We aim to profitably double export volumes by FY2021, providing comprehensive solutions to our clients (customers and suppliers), with balanced development of our bu
Slide 20: 3.2 Strategy 2021 serves as a solid basis for future growth
Q2 FY2021 Balanced results and Balanced growth outlook Kernel today growth strategy strategy Financials 3.2 Strategy 2021 serves as a solid basis for future growth across all business segments Strategy 2021 investments pipeline overview: Status Segment (as of February US$ million FY2017 FY2018 FY201
Slide 21: Content
Content 1. Q2 FY2021 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 22: 4.1 Consolidated statement of profit or loss
Q2 FY2021 results and Balanced outlook Kernel today growth strategy Financials Financials 4.1 Consolidated statement of profit or loss US$ million, except ratios and EPS FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 LTM Revenue 215 350 663 1,047 1,020 1,899 2,072 2,797 2
Slide 23: 4.2 Balance sheet
Q2 FY2021 results and Balanced outlook Kernel today growth strategy Financials Financials 4.2 Balance sheet Balance sheet highlights 31 Dec US$ million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 2020 Cash & cash equivalents 6 25 89 129 59 116 83 79 65 129 60 143 132 7
Slide 24: 4.3 Cash flow statement
Q2 FY2021 results and Balanced outlook Kernel today growth strategy Financials Financials 4.3 Cash flow statement US$ million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 LTM EBITDA 17 46 123 190 190 310 319 288 223 397 346 319 223 346 443 786 Finance cost paid (9) (18)
Slide 25: IR contact and investor calendar
IR contact and investor calendar Michael Iavorskyi Investor Relations Manager ir@kernel.ua Tel.: +38 (044) 461 88 01, ex. 7275 3 Tarasa Shevchenka Lane, Kyiv Ukraine, 01001 Investor calendar Q3 FY2021 Operations Update 23 April 2021 Q3 FY2021 Financial Report 28 May 2021 Q4 FY2021 Operations Update
Slide 26: Content
Content 1. Q2 FY2021 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 27: A1. Markets and business environment
A1. Markets and business environment Oilseed Processing Infrastructure and Trading Farming Global production of vegetable oils Global production and export of Global grain exports Top grain exporting countries Grain yields in MY2020/21 million tons sunflower oil million tons million tons t / ha mill
Slide 28: A2. Kernel sustainability approach
A2. Kernel sustainability approach We aim to unlock the Ukrainian food production potential to feed the growing world population in a sustainable manner Achievements Key non-financial KPIs Environment FY16 FY17 FY18 FY19 FY20 ◼ Proper set of internal policies and procedures to drive sustainable deve