Kernel Holding S.a. · GPW:KER
Kernel — Investor Presentation (October 2012)
28 slides from Kernel's investor presentation, October 2012
Slide 1: Kernel Holding S.A. Company Presentation
KERNEL HOLDING S.A. CO M PA N Y P R E S E N TAT I O N October 2012
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: Company Overview
COMPANY OVERVIEW October 2012
Slide 4: Kernel – the leading agribusiness company in Ukraine and emerging player in Russia
Kernel – the leading agribusiness company in Ukraine and emerging player in Russia Ukraine Russia №1 BULK SUNFLOWER №1 BULK SUNFLOWER OIL №1 BOTTLED OIL PRODUCER LEADING GRAIN TAMAN DEEP WATER OIL EXPORTER IN UKRAINE EXPORTER IN UKRAINE AND MARKETER IN UKRAINE ORIGINATOR AND MARKETER GRAIN TERMINAL
Slide 5: Value chain management business model
Value chain management business model Kernel Farming + Sourcing + Processing + Logistics + Distribution = added value 330 000 ha(1) of farm land grain & oilseed origination 10 oilseed crushing plants 40+ grain silos providing 4.7 Mio tons of agricultural FY2012: fully cultivated from over 2 000 farm
Slide 6: Strategy
Strategy GEOGRAPHIC FOCUS ASSET BASE OPERATIONAL DISCIPLINE Become the leading exporter of soft com- Focus on developing asset base in each Limit commodity open market positions modities in the Black Sea region segment to a target VaR < US$ 5 Mio or 0.5% of total Lead the market consolidatio
Slide 7: Ukraine: undisputed world leader in production and export of sunflower oil
Ukraine: undisputed world leader in production and export of sunflower oil MAJOR PRODUCING COUNTRIES, season 11/12 EU - 27 Russia Average sunflower 8.3 Mio tons 9.6 Mio tons seed yields (t/ha) sunflower seed production sunflower seed production 2.9 Mio tons 3.6 Mio tons sunflower oil production sunf
Slide 8: Ukraine: global leader in sunflower oil trade and major exporter of grain
Ukraine: global leader in sunflower oil trade and major exporter of grain Ukraine accounts for half Ukrainian sunflower oil exports of global sunflower oil export by destination, season 2011/2012 Ukraine is the world’s largest exporter of sunflower oil, accounting for half of global sunflower oil
Slide 9: FY2012 Contribution by operating segment
FY2012 Contribution by operating segment Revenue by segment (1) EBITDA (2) (US$ Mio / % of total revenue) (US$ Mio / % of EBITDA) US$ 99.1 / 4.2% US$ 20.0 / 5.7% US$ 51.0 / 2.2% US$ 18.3 / 5.2% US$ 28.9 / 1.2% US$ 13.7 / 3.9% US$ 203.0 / 8.7% US$ 31.8 / 9.1% US$ 2 157 Mio US$ 1 191.6 / 50.9% US$ 322
Slide 10: FY2011 Contribution by operating segment
FY2011 Contribution by operating segment Revenue by segment (1) EBITDA(2) (US$ Mio / % of total revenue) (US$ Mio / % of EBITDA) US$ 9.3 / 2.8% US$ 26.6 / 1.3% US$ 17.9 / 5.5% US$ 33.0 / 1.7% US$ 26.5 / 8.1% US$ 152.1 / 7.6% US$ 1 157.9 / 58.0% US$ 175.9 / 53.7% US$ 1 899 Mio US$ 310 Mio US$ 66.4 /
Slide 11: Segmental Review
SEGMENTAL REVIEW October 2012
Slide 12: Bulk oil segment
Bulk oil segment Crushing capacity Kernel – No1 oilseed crusher in Ukraine with (% of Ukraine capacity, Kernel estimate) 2.6 Mio tons/year sunflower seed crushing capacity KERNEL 36 % Kernel – 36% estimated market share (percent of Ukraine total capacity) Other 44 % Main competitors: Cargill – 1
Slide 13: Bottled oil segment
Bottled oil segment Kernel – leading bottled oil producer Bottled oil sales and marketer in Ukraine (% of total Ukraine market, FY2012 Kernel estimate) Consolidated bottled oil sector Kernel and Bunge supply over 50% of bottled Korolivsky smak, 7% oil sold in Ukraine Other, 39% Kernel and Bunge
Slide 14: Grain segment
Grain segment Leading grain supply chain operator in Ukraine with 9% market share of grain & oil-bearing Major grain exporters in season 11/12 (1) crops export in season 11/12 Khlibinvestbud 14% Extensive and well-established origination base Nibulon 10% Origination effected directly at farm l
Slide 15: Export terminals segment
Export terminals segment TransBulkTerminal (“TBT”) 2nd largest grain terminal in Ukraine, 4 Mio tons/year grain throughput capacity Key features: 200 000 tons grain storage capacity in 38 vertical bins directly alongside berth Handles all types of grain Grain & oilseeds delivery to terminal by
Slide 16: Silo services segment
Silo services segment Largest private grain silo network in Ukraine with 2.5 Mio tons grain storage capacity Strategic location of silos in key origination areas and close to Kernel crushing plants All silos connected to national railway network, allowing grain shipment to port by railcar 160 000 to
Slide 17: Farming segment
Farming segment Kernel farming acreage(1) ths.ha 350 Kernel in farming since 2002 330.0 Prime location of farms in grain and sunflower belt of Ukraine 300 Farms benefit from close location to Kernel grain silos and 250 processing plants Largest landbank among listed Ukrainian companies 200 183.0 150
Slide 18: Sugar production & marketing
Sugar production & marketing Ukraine market suffers from shortage Kernel sugar production platform of domestically produced sugar 2nd largest sugar beet processing capacity in Ukraine: 4 sugar Average yearly sugar consumption: 1.8-2.0 Mio tons plants total 2 Mio tons/year sugar beet processing cap
Slide 19: Strategy Highlights
STRATEGY HIGHLIGHTS October 2012
Slide 20: Russia: Taman acquisition unlocks the development of Russian operations
Russia: Taman acquisition unlocks the development of Russian operations Kernel goals in Russia: FY2016 2 500 000 tons of grain transshipment (1) 2 500 000 tons of grain export volumes 1 000 000 tons of sunflower oilseed processing volumes Expected EBITDA contribution about US$120 Mio Acqui
Slide 21: Ukraine: Combination of organic and acquisitive growth strategy
Ukraine: Combination of organic and acquisitive growth strategy Organic: FY2013-2014 Full capacity utilization at crushing plants Increase transshipment volumes at Transbulkterminal Improvement of farming EBITDA through integration of acquired entities Greenfield inland silo development to e
Slide 22: Financial Highlights FY2006 – FY2012
FINANCIAL HIGHLIGHTS FY2006 – FY2012 October 2012
Slide 23: Income statement highlights FY2006 – FY2012
Income statement highlights FY2006 – FY2012 (1) Amounts in USD million, except for EPS and margins FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Revenue 215.2 350.4 663.1 1 047.1 1 020.5 1 899.1 2 157.4 EBITDA (2) 17.0 46.3 123.2 190.0 190.1 309.6 322.0 Result from operating activities (EBIT) 12.
Slide 24: Balance sheet highlights FY2006 – FY2012
Balance sheet highlights FY2006 – FY2012 (1) Amounts in USD million FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Invested Capital Cash & cash equivalent 6.4 25.3 88.5 129.3 59.5 115.9 82.5 Net trade accounts receivable 9.1 9.8 48.7 32.4 65.5 111.6 146.4 Inventory 32.3 40.2 144.7 99.1 147.8 183.7
Slide 25: Cash flow highlights FY2006 – FY2012
Cash flow highlights FY2006 – FY2012 (1) Amounts in USD million FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Operating profit before working capital changes 16.6 45.4 116.1 188.2 205.7 275.2 291.4 Changes in working capital (35.9) (14.7) (210.2) (25.0) (97.3) (180.1) (335.0) Cash obtained from/(
Slide 26: Credit metrics FY2006 – FY2012
Credit metrics FY2006 — FY2012 (1) Amounts in USD million, except ratios FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Gross interest-bearing debt 93.3 164.3 255.8 294.6 345.2 422.0 692.8 Cash 6.4 25.3 88.5 129.3 59.5 115.9 82.5 Net interest-bearing debt 86.9 139.0 167.3 165.3 285.7 306.1 610.3 R
Slide 27: Segmental Results
Segmental Results(1) Revenue(2), USD million EBITDA(3), USD million EBITDA(3) margin, % Tonnage(4) FY11 FY12 % change FY11 FY12 % change FY11 FY12 FY11 FY12 % change Bulk oil 1 157.9 1 191.6 2.9% 175.9 166.6 (5.2%) 15.2% 14.0% 820 987 828 370 0.9% Farming 54.7 171.0 212.8% 31.5 73.8 134.2% 57.6% 43.
Slide 28: IR Contact
IR Contact • Yuriy Kovalchuk Investor Relations Director investor_relations@kernel.ua • Yegor Samusenko Investor Relations Manager y.samusenko@kernel.ua Tel.: (+38-044) 461-88-03 October 2012 28
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