AB Akola Group · OMXVSE:AKO1L
AB Akola — AB Linas Agro Group — Webinar (March 2022)
23 slides from AB Akola's conference presentation, Mar 1, 2022
Slide 1: Overview of activities & finance for H1 FY 2021/2022
AB Linas Agro Group Overview of activities & finance for H1 FY 2021/2022 1st of March 2022 1
Slide 2: Disclaimer
Disclaimer This document might include directly or indirectly expressed forward-looking statements, reflecting assumptions or current view of the Company’s management. Group‘s future performance and results highly depend on the market conditions, regulations, climate changes and other various extern
Slide 3: Today's presenter
Today‘s presenter Mažvydas Šileika Finance Director & Contact for Investors With AB Linas Agro Group since 2020 10 years professional experience including Banking & Shipping industries Master’s degree in Shipping, Trade and Finance / Cass Business School Bachelor’s degree in Management / University
Slide 4: International vertically integrated agribusiness & food Group
We are international vertically integrated agribusiness & food Group 2010 152 1991 Listed 5,398 mEUR Founded since employees Market Capitalisation 856 39.2 805 28% mEUR mEUR mEUR Capital ratio 6 months data Conso revenue Conso EBITDA Conso BS (excl.IFRS16) 5 1.9 564 18 258 Key activity m tons ktons
Slide 5: Key milestones becoming the Group we are today
Key milestones becoming the Group we are today 250000 mEUR 1400 200000 1200 starting seed production… 942 1000 expanding activity with launching grain 150000 agricultural machinery sales, seeds and grain handling and storage services storage equipment 800 engaging in milk expanding fertiliser produc
Slide 6: Linas Agro Group at the end of the reporting period
Linas Agro Group at the end of the reporting period companies* in LT, LV, EE, UA, BY, PL, RU, EE 75 controlled by AB Linas Agro Group LV RU LT Agri-machinery & Agricultural Grain, feedstuff Food Other agri-innovation production and Agro inputs BY NL PL 3 + 0 7 + 0 4 + 8 5 + 12 0 + 5 33 companies 7X
Slide 7: Key segments
Key segments Products & services Agricultural Food Grain, Oilseeds, Feed Other for farming production products A whole cycle poultry business; Sales of seeds, plant protection Trade in grain, oilseeds and feedstuffs; Cultivation of cereals, oilseed rape, wholesale of flour, flour mixes, Goods and se
Slide 8: Financial highlights of FY 2021/2022
Financial highlights of FY 2021/2022 ✓ Elevated sales (+80%) and restored profitability ✓ Modified sales structure (stronger food & products for farmers positions) ✓ BS - almost doubled in size ✓ Solid capital ratio – 28% ✓ Decreased leverage – 5.49x Fiscal year of the company starts on July 1st 8
Slide 9: Record high revenues of the reporting period
Record high revenues of the reporting period Dynamics in profitability & revenue per segment brief Gross profit, % 8.4% Operating profit, % 7.3% 6.2% 6.2% 7.5% 4.2% 1.2% 2.6% 0.8% 1.0% 1.1% 2.7% 1000 H1 H1 856 50 46 800 40 30 23.2 600 475 18 18 19 18 18 20 400 325 329 317 297 10 8.5 3.7 200 2.7 3.0
Slide 10: Operating profit: before and after earnings' structure
“Before and after” earnings’ structure brief 100% 80% 7% 18% 19% • Key revenue generator remained GOF segment, however regardless of 22% 60% Sales 40% 47% higher sales, segment’s share in sales structure diminished; trade 74% 20% 60% was somewhat complicated – manoeuvring with lower yields and poor
Slide 11: Boosted Balance Sheet in brief
Boosted Balance Sheet in brief Total assets H1 2020/2021 vs H1 2021/2022 mEUR Cash, 13 Intangible assets mEUR Cash, 13 2 • Balance sheet mainly comprises of Intangible assets Current assets and S/T liabilities that 3 reflect inventory from trading activity and farmer financing 6 months data Current
Slide 12: Products and services for farming
Products ✓ ✓ Certified seed Fertilizers and services ✓ ✓ Plant protection products Micronutrients for farming ✓ Grain storage facilities and farm equipment ✓ Agricultural machinery ✓ Spare parts and service Since 1993 ✓ Smart farming system 12
Slide 13: Key data and latest developments
Key data and latest developments • During H1 2021/2022: a) intelligent farming start-up GeoFace - new functionalities installed, monetization still on hold b) new service center in Utena c) increased storage capacity for fertilizers, plant protection products (after acquisition of KGG + 97 ktons) d)
Slide 14: Agricultural production
Agricultural ✓ ✓ Cereals growing Rapeseed growing production ✓ ✓ Sugar beet growing Milk production ✓ Beef cattle rearing Since 2003 14
Slide 15: Key data and latest developments
Key data and latest developments • During H1 2021/2022: a) 19% less crops were harvested in tons (compared to corresponding period last year), biggest loss on summer plants; b) despite of a bit higher number of cows, volumes of milk produced was slightly lower, though characterized by better qualita
Slide 16: Grain, oilseeds, feed
Grain, ✓ Grain storage and preparation oilseeds, ✓ Logistic services ✓ Feedstuff feed ✓ Grain ✓ Oilseed ✓ Ecologic grain and Since 1991 oilseeds 16
Slide 17: Key data and latest developments
Key data and latest developments • During H1 2021/2022: a) Linas Agro OU - company in Estonia starts trading activity b) continuous reorganization of elevator companies (aim to achieve full consolidation of three elevator companies in LT) c) increased storage capacity – both, in own storage base and
Slide 18: Food products
✓ Full poultry manufacturing cycle: Food Feed mill plant Parent flocks products Chicken from locally laid eggs Broiler Poultry Since 2013 meat products ✓ Manufacture and wholesale of flour, flour mixes, breadcrumbs, breading mixes, instant foods 18
Slide 19: Key data and latest developments
Key data and latest developments • During H1 2021/2022: a) new profitable food additions after acquisition of KG Group (flour, breadcrumbs, instant foods) b) loss making poultry business, due to overproduction in Europe, as well as low prices of pork substitute, current poultry price does not cover
Slide 20: Other activities
Other ✓ Pests control, hygiene products, disinfection activities ✓ Pet food production and sales ✓ Veterinary pharmacy ✓ Other Since 2021 20
Slide 21: Key data and latest developments
Key data and latest developments • During H1 2021/2022: a) new activities in the Group after acquisition of KG Group b) key challenges in extruded products, pet feed category: sharp rise in commodity prices and high competition in the market led to deteriorating profitability c) the need for disinfe
Slide 22: Drivers for the 2nd half of the year and key developments after reporting
Drivers for the 2nd half of the … & key developments year… after reporting EUR million • Obtaining synergies of post merger LNA - • January 2022 – completed acquisition of the UAB Agro logistic service, strategic (agricultural inputs business to be partner of KG Group companies in the feedstuff trad
Slide 23: Thank you
Thank you 23