Slide 1: AgroGeneration Annual Results 2015
April 2016 AgroGeneration Annual Results 2015 AgroGeneration SA - 18, rue Pasquier 75008 Paris, FRANCE – Tel.: +33 1 56 43 68 60 1
Slide 2: Company Background
AgroGeneration Company Background
Slide 3: Company Background: Today's Position
Company Background Today’s Posi5on AgroGenera4on Today ! Operates c.a. 120,000 ha in 5 regions of Ukraine •Among the 5 largest pure crop producers and ! Grain storage capaci4es of ≈ 220,000 tons among 10 major ag players in Ukraine ! Headcount stands at about 1,400 workers •French public company, li
Slide 4: Experienced Operations and Management Team
Company Background Chaired by an Experienced Opera5ons and Management Team Michael Bleyzer Sergey Bulavin Chairman of the Board of Directors Senior Vice President Chairman & CEO of SigmaBleyzer, one of the largest and most Chief Opera7ons Officer experienced private equity investor in Eastern Europe J
Slide 5: Current Shareholders and Investors
Company Background Current Shareholders and Investors AgroGeneraKon Shareholding Structure as of December 31, 2015 Konkur Investment Limited 30,9% Konkur: investment holding company controlled by SBF Green Alliance IV (run by SigmaBleyzer), the ul7mate parent for the Group Gravita7on 58,1% Green All
Slide 6: Successful Turnaround in 2013-2015
AgroGeneration Successful Turnaround in 2013-2015
Slide 7: Key Milestones of Development
Successful Turnaround in 2013-‐2015 Key Milestones of Development 2015 Further strengthening of business efficiency and spectacular recovery of the balance sheet from the debt burden through successful comple7on of the restructuring process 2014 Successful turnaround of the Group. Significant improvem
Slide 8: Operational Management Achievements
Successful Turnaround in 2013-‐2015 Opera5onal Management Achievements ! “Clustering” concept in running the AgroGeneraKon. Clustering Structure of the Group business Representa4ve Offices ! State-‐of-‐the-‐art soil treatment and tes4ng (Paris, Kyiv) technologies are applied to keep op7mal soil We
Slide 9: Produced Crops & Crop Mix Optimization
Successful Turnaround in 2013-‐2015 Produced Crops & Crop Mix Op5miza5on 376k tons Wheat, sunflower and barley are the produced main cash producing crops 3% 4% 5% 6% 7% 1% Rapeseed (along with wheat 9% and sunflower) is one of the most profitable crops 7% 8% 2015 42% 400k tons 108k ha under 50% produc
Slide 10: Yields vs Gross Margins Balance
Successful Turnaround in 2013-‐2015 Yields vs Gross Margins Balance ! In 2015, AGG yields outperformed Ukraine averages for most of the harvested crops ! Despite strong nega7ve drivers (crop price collapse and lower yields vs 2014 affected by weather), the performance (gross margin) of crops in AGG’
Slide 11: Commercial Strategy
Successful Turnaround in 2013-‐2015 Commercial Strategy ! Direct sales to exporters and processors ! Top-‐4er purchasers: ADM, CARGILL, KERNEL, LOUIS DREYFUS ! Risk hedging through forward contracts (account for around 20% to 40% of yearly sales) ! Constantly increasing export share in total sales
Slide 12: Audited Financials: Remarkable EBITDA for the 2nd Year in a Row
Successful Turnaround in 2013-‐2015 Audited Financials: Remarkable EBITDA for the 2nd Year in a Row AgroGeneraKon. Audited Financial Results In €k 20131 2014 2015 Revenue 72,154 64,620 58,861 In 2015, the second year aoer the Change in FV of BA and finished goods (8,969) 12,732 18,921 Cost of sales
Slide 13: Consolidated Income Statement Analysis
Consolidated Income Statement Analysis 2015 vs 2014 Gross Profit Evolu5on 2015 vs 2014 Gross Profit Bridge, M EUR €2.9 €24.0 €21,7 €3.9 €0.2 €2.6 €7.8 (€9.8) (€5.3) 2014 Gross Volume Price effect Volume Cost per ton Change in Other Forex 2015 Gross Profit effect effect effect FV of BA&FG segments effect* Pr
Slide 14: Consolidated Statement of Financial Position
Successful Turnaround in 2013-‐2015 Consolidated statement of financial posi5on AgroGeneraKon. Balance Sheet €k 31.12.2014 31.12.2015 Debt restructuring Non-‐current assets 63,560 81,428 Intangible assets and leasehold rights 40,876 37,922 ! Debt restructuring conducted by AGG in 2015 Property, pla
Slide 15: Perspective
AgroGeneration Perspective
Slide 16: Ukraine Macroeconomic Performance
Ukraine Macroeconomic Performance Ukraine. 2016 Main Macroeconomic Indicators ! GDP dynamics should change its vector to a posi4ve trend Forecast Indicator 2016 F ∆ vs 2015, % ! The infla4on rate is expected to con4nue to decline GDP, $ billion $99.0 +1.0% ! Hryvnia is expected to remain rela4vely st
Slide 17: Ukrainian Agricultural Sector: The 3rd Year of Challenges
Ukrainian Agricultural Sector The 3rd Year of Challenges § Market capitaliza4on of Ukrainian public ag Challenging companies dropped significantly Debt burden of ag sector in Ukraine reached 2014 § the cri4cal point § Companies curtailed their investment plans 2014-‐2016 WIG-‐Ukraine Index Dynam
Slide 18: 2016 Season Planned Crop Mix
2016 Season Planned Crop Mix AGG. 2016 vs 2015 Planned Crop Mix, % ! Total area to be engaged under crops in 2016 is 2016P planned at approx. 110,000 ha, which is 2% higher vs 110k ha under crops 2015 8% 1% 11% 7% 1% ! Winter crops cover an area of 47,000 ha (-‐20% vs 2015) 9% 33% ! Decline in acre
Slide 19: Commodities Market Trends for 2016
Commodi5es Market Market Trends for 2016 In 2016 most commodi4es markets showed considerably S&P Agri Index Dynamics more risk to the upside than the downside from current levels Global Agriculture Markets ! Record crop harvests have led to stock building and downward pressure on prices ! China: soy
Slide 20: 2016 Crop Year Financing
2016 Crop Year Financing Expecta5ons and Forward Crop Sales Progress ! AgroGenera7on successfully renewed its crops financing for the 2015/16 crop year with Alfa Bank Ukraine for a maximum amount of $35M ! As far as market prices are at a low level, in coming 2016 crop season, AgroGenera7on is expec7
Slide 21: Development Plans: Opportunities Overview
Development Plans Opportuni5es Overview ! With strong improvement of its financial condi4on, AGG can start reviewing cau4ously expansion opportuni4es in Ukraine ! Addi4onal investments will provide growth opportuni7es to expand exis7ng business lines of AgroGenera7on and enter into new ones through v
Slide 22: Appendix
Appendix
Slide 23: SigmaBleyzer Overview
Appendix SigmaBleyzer Overview ! SigmaBleyzer Investment Group, LLC is a US private equity firm with significant infrastructure, experience and a successful track record of inves7ng in Ukraine and Eastern Europe over the past 20 years ! With its main offices in Houston, Kyiv and Kharkiv, manages approx.
Slide 24: Disclaimer
Disclaimer This presenta5on and the informa5on contained herein do not cons5tute an offer to sell or a solicita5on of an offer to buy or subscribe to shares/OSRANE AgroGenera5on in any country. In addi5on, this presenta5on may contain forward-‐looking financial items or es5mates and they do not necess