Astarta Holding Plc · GPW:AST
Astarta — H1 2019 Earnings Presentation
26 slides from Astarta's earnings presentation, Aug 16, 2019
Slide 1: 1H19 operating and financial results
ASTARTA 1H19 operating and financial results August 2019
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: 1H19 Highlights
1H19 Highlights Summary P&L • Consolidated revenues increased by 1/3 to EUR228m in EURk 1H18 1H19 1H19 compared to 1H18 driven by strong growth in the Revenues, including 175 115 227 964 agricultural segment (47% share in total revenues in 1H19) Agriculture 49 830 106 228 Sugar 67 487 55 322 • Astar
Slide 4: 1H19 Highlights: Summary Cash Flows and Balance Sheet
1H19 Highlights Summary Cash Flows Summary Balance Sheet Summary Cash Flows - EURk 1H18 1H19 EURk YE18 1H19 Pre-tax income 38 396 29 895 Right-of-use asset (land) 80 723 91 757 D&A 18 985 25 624 Biological assets (non-current) 17 064 18 121 Financial interest expenses, net 4 873 8 804 PP&E and other
Slide 5: Agriculture
Agriculture Production of key crops Financial results kt 2016 2017 2018 EURk 2016 2017 2018 1H18 1H19 Corn 415 339 622 Revenues 84 366 140 918 126 765 49 830 106 228 Wheat 313 237 242 Cost of Revenues (67 361)(125 324)(111 772) (45 600) (99 874) Sunseeds 72 73 117 BA revaluation 48 677 35 507 50 993
Slide 6: Agriculture Achievements and Outlook
Agriculture ASTARTA grain and oilseed crop yields vs average Ukrainian, t/ha 2016 2017 2018 t/ha ASTARTA Ukraine ASTARTA Ukraine ASTARTA Ukraine Corn 8,7 6,6 6,4 5,4 9,8 7,8 Wheat 5,8 4,2 5,0 4,1 4,7 3,7 Sunflower 2,6 2,2 2,3 2,0 2,9 2,3 Soybeans 2,2 2,2 2,2 2,0 2,9 2,6 Sugar beet 56 48 50 46 46 49
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 mt mt 400 35% 350 40% 350 30% 300 35% 300 25% 250 30% 250 25% 20% 200 200 20% 15% 150 150 15% 100 10% 100 10% 50 5% 50 5% 0 0% 0 0% 1991 1993 1995 1997 1999 2001 2003 2005 200
Slide 8: Agriculture: FCF 2006-2018
Agriculture FCF of the agricultural segment for 2006 – 2018 100 000 250 80 000 200 60 000 40 000 150 20 000 100 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 50 (20 000) (40 000) - EBITDA Capex FCF Revenue per ton of grains&oilseeds sold (rhs) 2006-2018 Units Average revenue per
Slide 9: Sugar
Sugar Production Financial results Unit 2016 2017 2018 EURk 2016 2017 2018 1H18 1H19 Sugar production kt 505 463 352 Revenues 174 519 200 565 119 436 67 487 55 322 Own sugar beet % 66% 79% 60% Cost of revenues (105 644) (130 972) (103 779) (56 978) (50 351) Sugar beet processed kt 3,443 3,077 2,472
Slide 10: Sugar market
Sugar market Sugar production, consumption and exports - Ukraine mt kt • Local sugar consumption dropped by 1/3 to an estimated 1.3mt since 2013 2,5 700 • The market is still working through the 600 2,0 0.5mt production/consumption gap since 500 2016 1,5 1.8 400 • At the same time, the Ukrainian mar
Slide 11: Sugar: Key achievements and outlook
Sugar • Preserved leadership position on the Ukrainian sugar market with market share at 25-30% Key achievements • Sustained high quality sugar despite adverse weather conditions: • High quality sugar production in 2017-2018 was 87% from total volume of sugar produced compared to 71% in 2015- 2016 •
Slide 12: Sugar: FCF 2006-2018
Sugar FCF of the sugar segment for 2006 - 2018 80 000 900 800 60 000 700 40 000 600 500 20 000 400 0 300 2 006 2 007 2 008 2 009 2 010 2 011 2 012 2 013 2 014 2 015 2 016 2 017 2 018 200 (20 000) 100 (40 000) - EBITDA Capex FCF Revenue per ton of sugar sold (rhs) 2006-2018 Units Average revenue per
Slide 13: Soybean processing
Soybean processing Soybean products - output Financial results kt 2016 2017 2018 1H18 1H19 EURk 2016 2017 2018 1H18 1H19 Soybean meal 158 153 158 89 91 Revenues 74 951 72 713 74 290 39 719 45 978 Soybean oil 39 40 41 23 24 Cost of revenues (53 447) (64 261) (64 650) (36 431) (38 565) Gross profit 21
Slide 14: Soybean processing: FCF 2013-2018
Soybean processing FCF of the soybean processing segment for 2013 - 2018 25 000 450 20 000 400 15 000 10 000 350 5 000 300 0 (5 000) 2013 2014 2015 2016 2017 2018 250 (10 000) 200 (15 000) 150 (20 000) (25 000) 100 EBITDA Capex FCF Revenue per ton of soya products sold 2013-2018 Units Average revenu
Slide 15: Dairy
Dairy Financial results Milk production, herd and productivity 2016 2017 2018 1H18 1H19 EURk 2016 2017 2018 1H18 1H19 Milk production, kt 107 110 106 55 52 Revenues 24 827 31 795 29 309 14 654 16 749 Herd, k heads 30 27 27 26 25 Cost of revenues (20 341) (23 355) (24 852) (12 169) (13 374) Milk yiel
Slide 16: Dairy: FCF 2006-2018
Dairy FCF for the dairy segment for 2006 - 2018 450 22 000 400 350 17 000 300 12 000 250 200 7 000 150 100 2 000 50 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (3 000) - EBITDA Capex FCF Revenue per ton of milk sold 2006-2018 Units Average revenue per ton of product sold EUR/t 3
Slide 17: Strategy and outlook
Strategy and outlook • Release working capital and reduce capex to Financial goals stable maintenance levels while sugar product margins remain historically low • Reduce leverage to a sound level • Wide ranging cost cutting measures to reduce fixed and variable costs across the board • Retain No 5 a
Slide 18: Summary Financials
(()) ASTARTA- KYIV agri-industrial holding Summary Financials
Slide 19: Last four years highlights
Last four years highlights Revenues, EURm ∑459 Investments, EURm ∑57 500 60100% ∑49 14% ∑369 13 ∑372 3 13% ∑314 32 2 12% 50 12% 400 10 23 80% 1 6 73 59% 10% 25 29 56% 40 ∑26 24 300 75 51% 60% 7% 8% 51 74 30 ∑8 1 39 36% 141 0 34 6% 200 84 40% 82 20 3% 127 17 4% 100 1 151 175 201 1020% 2% 119 5 8 13 1
Slide 20: Consolidated Balance sheet
Consolidated Balance sheet EURk 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Right-of-use asset - - - - - - - - - - - - 80 723 Biological assets 3 701 6 380 5 150 12 747 14 926 20 148 43 961 45 497 30 397 19 291 15 209 22 437 17 064 PP&E and other 32 714 79 147 78 513 111 096 147
Slide 21: Consolidated statement of profit and loss
Consolidated statement of profit and loss EURk 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Revenues 68 051 87 747 123 382 128 239 219 330 303 587 352 582 327 042 351 902 313 997 368 891 458 601 372 222 Cost of revenues (55 295) (66 867) (96 262) (82 638) (128 319) (193 480) (285
Slide 22: Consolidated Cash Flows
Consolidated Cash Flows EURk 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 PBIT 5 507 22 964 (10 803) 29 874 79 626 89 996 44 849 21 223 (67 184) 14 037 85 068 62 693 (16 939) Depreciation and amortization 3 875 5 043 9 450 8 178 13 198 17 474 25 198 27 133 25 367 22 101 28 904 36
Slide 23: Appendix
(()) ASTARTA- KYIV agri-industrial holding Appendix
Slide 24: Valuation and capital structure
Valuation and capital structure EV 1H19 versus 1H18 EV 2016-2018 6,6 500 10,0 500 7,0 4,9 6,0 7,5 400 400 8,0 5,0 134 144 300 307 6,0 300 191 4,3 4,0 308 5,2 200 3,0 200 3,0 3,6 4,0 2,7 2,0 295 225 257 130 100 100 1,0 1,1 2,0 1,0 146 0 0,0 0 0,0 1H18 1H19 2016 2017 2018 Net debt MCAP EV/EBITDA (LTM)
Slide 25: ASTARTA key assets
ASTARTA key assets Originally founded as a sugar business 26 years ago, now is one of the top Ukrainian producers and exporters of grains; one of the leading sugar beet and soybean processor, milk farming Sugar • 7 Sugar plants in Ukraine, daily KYIV capacity - 39kt of sugar beet • 1/3 of the local
Slide 26: FV of biological assets
FV OF BIOLOGICAL ASSETS Crops calendar Mar Apr May Jul Aug Sep Oct Nov Dec Assets in agriculture Sugar beets Winter crops Biological assets Agricultural produce Corn Agriculture Agriculture Sunflower seeds Non-current Current produce produce Livestock unharvested Soybeans crops at the point of subse