Dn Agrar Group S.a · BVB:DN
Dn Agrar — Investor Day (June 2023)
54 slides from Dn Agrar's investor day presentation, June 2023
Slide 1: DN AGRAR Investors' Day
DN AGRAR Investors’ Day June 2023 1
Slide 2: Agenda
Agenda INTRODUCTION JOURNY OF DN AGRAR GROUP MILK PRODUCTION AGRICULTURE VISIT DN AGRAR APOLD VISIT DN AGRAR CUT LUNCH PARTNER PRESENTATIONS DN AGRAR TODAY STRATEGY AND PROJECTS QUESTIONS 2
Slide 3: Management Team
MANAGEMENT TEAM CEO Investor Relations Manager Economic Director Jan G. de Boer Peter de Boer Ștefan Gabriel Țico Tehnical Director Livestock Manager Vegetal Production Manager Chief Accountant Marian Mircea Rusu Adina Trufaș Bogdan Dan Mihaela Laura Nicula 3
Slide 4: Son of a Farmer's Family in Holland
SON OF A FARMER’s FAMILY IN HOLLAND 4
Slide 5: Meet Our CEO
MEET OUR CEO Jan de Boer Agricultural University Groningen Married with Marijke, 3 kids Farmer, 12 years together with my dad in Holland ( 35-150 cows) Biggest integrated Advisor for big First time in livestock farm in farms Romania Romania 2004 2008/2009 1999 -2006 2008 Today Start farming in Start
Slide 6: Start in Romania: Why, How, Future
START IN ROMANIA WHY HOW FUTURE 6
Slide 7: Management Team
MANAGEMENT TEAM CEO Investor Relations Manager Economic Director Jan G. de Boer Peter de Boer Ștefan Gabriel Țico Tehnical Director Livestock Manager Vegetal Production Manager Chief Accountant Marian Mircea Rusu Adina Trufaș Bogdan Dan Mihaela Laura Nicula 7
Slide 8: DN AGRAR Today
stock in the near future. Headquartered in Alba-Iulia 11,000 dairy cattle Dairy cows & young stock The objective of DN AGRAR company is toreach a number of up to 12,500 dairy cattle and young 15 companies They are part of the DN AGRAR GROUP S.A portofolio, which includes 4 farms whose main activity
Slide 9: DN AGRAR Group
DN AGRAR GROUP DN AGRAR GROUP SA 95% 96,67% 100% 95% 95% 95% 90% 90% 96,66% 99,99% 100% 96,67% 99% 100% DN DN DN DN DN DN DN DN DN PENSIU LACTO AGRAR AGRAR DN AGRAR AGRAR AGRAR AGRAR AGRAR AGRAR PRODA DN AGRAR NEA AGRAR CUT SRL SERVIC AGRAR STRAJA LOGISTIC GREENFIE TRADING APOLD CALNIC G AGRAR BIO S
Slide 10: DN AGRAR Today
DN AGRAR TODAY The largest integrated livestock farm in Romania, with Over 11,000 heads dairy cows as well as young cattle cow's milk production and vegetable production Over 7,000 hectares of land Founded by Jan G. de Boer in 2008 owned and leased The group's portfolio includes 15 companies Listed
Slide 11: Our Business Lines
OUR BUSINESS LINES Zootechnics Vegetable agricultural production Agricultural services Logistics Transport Tourism Business and management consulting services 11
Slide 12: Dynamics of Our Sector
DYNAMICS OF OUR SECTOR Decreasing trend for the heads of dairy cows Key highlights of the milk market in Romania Annual milk consumption per capita in Romania has increased by approx. 9%, from 237 liters /capita to 259 liters /capita between 2015 and 2020. Annual milk production per capita in Romani
Slide 13: Zootechnics
Zootechnics 13
Slide 14: Meet Our Zootechnics Manager
MEET OUR ZOOTECHNIS MANAGER Adina Trufaș In 2011, she joined In 2017, she Lacto Agrar as a became also In 2020, she took financial responsible for the also responsibility accounting DN Agrar Prodlact for the new DN specialist. youth farm. Agrar Cut farm. 2014 2019 2011 2017 2020 In 2014, she In 2019
Slide 15: Daily Routine at the Farm
DAILY ROUTINE AT THE FARM DAILY ROUTINE AT THE FARM Cows and young cattle love routine. We follow daily protocols. Work is carried out in three shifts of 8 hours per day, ensuring that the animals are always supervised. Our cows are checked daily by our veterinarians. 15
Slide 16: Processes in Our Farms
PROCESSES IN OUR FARMS From YOUNG CATTLE to COW In the first half-hour, the At 10 weeks, they are After 14 days, their young cattle receive weaned, and when they blood is checked for colostrum for reach 3-4 months, they antibodies/diseases. antibodies. move to the youth farm. At 13-15 months, they A
Slide 17: Daily Routine at the Farm
DAILY ROUTINE AT THE FARM 17
Slide 18: The Cow at Our Farm
THE COW AT OUR FARM THE COW The first calving occurs at an average age of 24 months. The cow is milked three times a day, every 8 hours. After 60 days from calving, she is inseminated for a new pregnancy. At 220 days of gestation, she is weaned and enters the mammary rest period. Then, the cycle rep
Slide 19: The Cow at Our Farm
THE COW AT OUR FARM 19
Slide 20: The Cow at Our Farm: Milking Cows
THE COW AT OUR FARM MILKING COWS We have two rotary milking parlors. One has 60 stalls and can milk 300 cows per hour, while the other has 72 stalls and can milk 350 cows per hour. Recently, we implemented robots for post-milking disinfection, and in the second half of the year, we will also have ro
Slide 21: The Cows at Our Farm
THE COWS AT OUR FARM ANIMAL WELFARE: Animals are always supervised by veterinary personnel; Sick cows are kept in a special group; They spend 1 year outside in pasture, where they grow in open air; Each cow has enough space, 1 animal per stall with straw or sand bedding; We monitor the animals using
Slide 22: Involvement in the Community
INVOLVEMENT IN THE COMMUNITY We sponsored the schools in the villages of the commune; We sponsored the Maria Beatrice Center; Over 5000 people benefit from the lease 22
Slide 23: Our Achievements & Plans
OUR ACHIEVEMENTS & PLANS ANIMAL STOCK: FORWARD LOOKING From 600 in 2011 to over 12,000 animals To increase milk production per cow on currently each farm and build an additional farm (3,500 cows); To produce more and higher quality feed DAILY PRODUCTION PER COW: from our cultivated lands; From 16 l
Slide 24: Vegetable Production
VEGETABLE PRODUCTION 24
Slide 25: Meet Our Vegetable Production Manager
MEET OUR VEGETABLE PRODUCTION MANAGER Dan Bogdan He graduated from USAMV Cluj Napoca in 2009. He has been a part of the DN AGRAR team since February 2011. He worked as a farm manager from 2012 to 2016. Currently, he is the manager of vegetable production. 25
Slide 26: How It All Started?
HOW IT ALL STARTED? We started with the first cultivated plots in the year 2009 - approximately 90 hectares. In the year 2010, we worked on approximately 1,500 hectares. In the year 2011, we worked on approximately 4,000 hectares. In the year 2022, we worked on approximately 8,200 hectares. Over 90%
Slide 27: The Performance Obtained
THE PERFORMANCE OBTAINED 2014: The first tractors equipped with Auto Track system Machine efficiency >40% Reduced input losses 2016: Over 90% of tractors are equipped with Auto Track 2017: Implementation of Arendis 2018: Implementation of Agrovir 2019: First agricultural drone flights 2020: Implemen
Slide 28: What We Produce
WHAT WE PRODUCE Feed base for livestock farms - Silage: •Corn silage: 60,000 tons/year •Triticale silage: 20,000 tons/year •Alfalfa silage: 20,000 tons/year Cereals: •Whole corn: over 10,000 tons/year •Wheat: 5,000 tons/year •Triticale: 3,000 tons/year •Barley for brewing: 1,000 tons/year Sunflower:
Slide 29: Structure and Cost of Crops 2022/2023
STRUCTURE AND COST OF CROPS 2022/2023 29
Slide 30: The Evolution of Cost During 2022/2023 Agriculture Year
THE EVOLUTION OF COST DURING 2022/2023 AGRICULTURE YEAR We keep real-time records of costs at the farm, crop, or plot level. It helps us make decisions regarding future investments in a crop or even a specific plot. 30
Slide 31: The Systems Used
THE SYSTEMS USED The Agromonitoring monitoring and control system We permanently know the current location of the machinery 31
Slide 32: The Systems Used
THE SYSTEMS USED We monitor the operating parameters of each machinery. Start and end time of the program, the exact route, and speed for each employee or contractor. Complete control over the performed work. 32
Slide 33: The New Technologies Tested in Our Farms
THE NEW TECHNOLOGIES TESTED IN OUR FARMS Carrying out phytosanitary treatments using agricultural drones. Testing the "minimum till" technology on cultivations of root crops 33
Slide 34: The Systems Used
THE SYSTEMS USED The application of semi-liquid manure with direct soil incorporation. After thorough research that lasted over a year, we made the acquisition in the year 2022. It distributes a large quantity of fertilizers in a short time within a radius of approximately 4 km around the lagoon. It
Slide 35: Where We Want to Be
WHERE WE WANT TO BE We want to be prepared for the agriculture of the future (Green Deal). We constantly invest in new technologies. We are constantly seeking new possibilities to maximize our profit per hectare. We aim to fully utilize manure. We reduce the use of chemical fertilizers. We reduce th
Slide 36: DN AGRAR Today
DN AGRAR TODAY The largest integrated livestock farm in Romania, with Over 11,000 heads dairy cows as well as young cattle cow's milk production and vegetable production Over 7,000 hectares of land Founded by Jan G. de Boer in 2008 owned and leased The group's portfolio includes 15 companies Listed
Slide 37: DN AGRAR Today
stock in the near future. Headquartered in Alba-Iulia 11,000 dairy cattle Dairy cows & young stock The objective of DN AGRAR company is toreach a number of up to 12,500 dairy cattle and young 15 companies They are part of the DN AGRAR GROUP S.A portofolio, which includes 4 farms whose main activity
Slide 38: DN AGRAR Group
DN AGRAR GROUP DN AGRAR GROUP SA 95% 96,67% 100% 95% 95% 95% 90% 90% 96,66% 99,99% 100% 96,67% 99% 100% DN DN DN DN DN DN DN DN DN PENSIU LACTO AGRAR AGRAR DN AGRAR AGRAR AGRAR AGRAR AGRAR AGRAR PRODA DN AGRAR NEA AGRAR CUT SRL SERVIC AGRAR STRAJA LOGISTIC GREENFIE TRADING APOLD CALNIC G AGRAR BIO S
Slide 39: Our Business Lines
OUR BUSINESS LINES Zootechnics Vegetable agricultural production Agricultural services Logistics Transport Tourism Business and management consulting services 39
Slide 40: Dynamics of Our Sector
DYNAMICS OF OUR SECTOR Decreasing trend for the heads of dairy cows Key highlights of the milk market in Romania Annual milk consumption per capita in Romania has increased by approx. 9%, from 237 liters /capita to 259 liters /capita between 2015 and 2020. Annual milk production per capita in Romani
Slide 41: Our Results
OUR RESULTS 41
Slide 42: Key Performance Indicators
KEY PERFORMANCE INDICATORS TURNOVER NET PROFIT EQUITY RON 150.79 mil. RON 13.94 mil. RON 79.66 mil. + 221.16% +56.83% +21.70% Vs 31.12.2021 Vs 31.12.2021 Vs 31.12.2021 EBITDA NET ASSET TOTAL ASSETS DN AGRAR GROUP SA RON 160.65 mil. RON 234.55 mil. RON 43.34 mil. +66.63% +59.59% +256.6% Vs 31.12.2021
Slide 43: Key Performance Indicators
KEY PERFORMANCE INDICATORS NET PROFIT EVOLUTION 2022 vs 2021 The acquisition of Lacto Agrar (realized in December 2021) and Apold (realized in April 2022) contributed to the results recorded. The results obtained at 31.12.2021 does not include the results of DN Agrar Apold. *consolidated results 43
Slide 44: Milk Production
MILK PRODUCTION DN AGRAR - Milk Quantity Delivered in 2022 vs. 2021 (liter) 5,000,000 At the level of DN AGRAR the quantity of milk delivered increased 4,500,000 by 9.4% compared to 2021. 4,000,000 The number of heads increased in 2022 3,500,000 following the investments made. 3,000,000 Jan. Feb
Slide 45: Key Operational Events in 2022
KEY OPERATIONAL EVENTS IN 2022 April June July September October December Takeover of Apold Launch of SAP solution New milking hall Start of the new Completion of the About 50 farm completed for Lacto Agrar completed at Apold lagoon for manure at modernization works million liters farm Lacto Agrar f
Slide 46: Milk Delivered in 2023
MILK DELIVERED IN 2023 DN AGRAR - Milk Quantity Delivered in 2023 vs. 2022 (liter) At the level of DN AGRAR the quantity of milk delivered in Q1 5,000,000 2023 increased by 13.35% compared to Q1 2022. 4,500,000 4,000,000 In the first 5 months of 2023 the increasing trend is maintained the 3,500,000
Slide 47: DN AGRAR Strategy
DN AGRAR STRATEGY 47
Slide 48: DN AGRAR Goals & Vision
DN AGRAR GOALS & VISION happy Sustainability cows DN happy Supply of satisfied high- Innovation cows quality healthy customers AGRAR and growth dairy milk products VISION satisfied Animal Community welfare engagement healthy milk customers 48
Slide 49: DN AGRAR Growth Pillars
DN AGRAR GROWTH PILLARS Improving Increasing Diversification of Increasing Building strong sustainability Productivity products and profitability relationships markets 49
Slide 50: Our View Towards Sustainability
OUR VIEW TOWARDS SUSTAINABILITY The DN AGRAR strategy is to promote sustainable, regenerative agriculture practices that maximize productivity, reduce environmental impact, and ensure long-term profitability. We believe that by investing in our farms, our communities, and our planet, we can build a
Slide 51: DN AGRAR Projects & Budget
DN AGRAR PROJECTS & BUDGET 51
Slide 52: 2023 Projects
2023 PROJECTS At the level of the companies in the DN AGRAR Group, we plan to continue the projects started in 2022, as well as to carry out a series of new projects. 52
Slide 53: 2023 Budget
2023 BUDGET TURNOVER NET PROFIT OPERATING INCOME RON 159.7 mil. RON 13.05 mil. RON 222.61 mil. + 5.91% -6.33% +8.37% Vs 31.12.2022 Vs 31.12.2022 Vs 31.12.2022 OPERATING INCOME FROM OPERATING EXPENSES SUBSIDIES RON 20 mil. RON 202.04 mil. +35.38% +11.27% Vs 31.12.2022 Vs 31.12.2022 *consolidated leve
Slide 54: Contact Investor Relations
CONTACT INVESTOR RELATIONS Peter de Boer, BoD Member & Investor Relations Manager investors@dn-agrar.eu , +40 258 818114 54