Agrogeneration Sa · EURONEXT:ALAGR
Agrogeneration Sa — Investor Presentation (May 2017)
27 slides from Agrogeneration Sa's investor presentation, May 2017
Slide 1: AgroGeneration
May 2017 AgroGeneration Invest Securities – Investor Presentation AgroGeneration SA – 3 de la Pompe Str., 75116 Paris, FRANCE – Tel.: +33 1 56 43 68 60
Slide 2: World Food Security Challenges
World Food Security Challenges
Slide 3: Food Security Challenges: Global Agricultural Demand and Supply
Food Security Challenges Global Agricultural Demand and Supply Food Security Challenges Globally… • Constrained agricultural production • Increasing demand globally • Decreasing world grain stocks Projections of World Grain Consumption and Production (Wheat and Coarse Grains, M tons) 2016E 2025F Wor
Slide 4: Food Stocks and Agricultural Prices
Food Security Challenges Food Stocks and Agricultural Prices Although food prices bottomed out in late 2016 and have been World Agricultural Prices Dynamics, USD/ton increasing since then, the current $600 Actual data Projections high level of inventories will suppress food prices during 2017 $500 a
Slide 5: Ukraine Agricultural Market Today
Ukraine Agricultural Market Today
Slide 6: Ukraine's Unique Advantages on the Global Market
Ukraine. Agricultural Market Today Ukraine’s Unique Advantages on the Global Market Ukrainian agriculture has tremendous unrealized potential: 32.5M ha of arable land with 26.8M ha cultivated Arable Land Comparison, ‘000 ha Natural endowment of high quality Hungary 4,403 fertile land UK 6,265 Italy
Slide 7: Ukraine's Unique Advantages: Investment Need and Export Potential
Ukraine. Agricultural Market Today Ukraine’s Unique Advantages on the Global Market The total need in or $5-$8 billion investments of about annually Investment in Ukraine is an opportunity $50-80 billion generated by the likely future global food security Agri Machinery techno- crisis and the need f
Slide 8: Another Record Year for a Leading Global Producer
Ukraine. Agricultural Market Today Ukraine. Another Record Year for a Leading Global Producer Ukraine, the largest sunflower oilseeds producer in the world Ukraine. Main Crops Production & Export Breakdown, M tons For four consecutive years now (2013-2016E) 2016E Share in 2016/17F Share in Crop Ukra
Slide 9: Peers Performance & Market Structure
Ukraine. Agricultural Market Today Peers Performance & Market Structure Ag market of Ukraine is still not completely developed and consolidated: Several thousand small companies and farmers work in the market today The number of companies with a land bank of over 50k ha does not exceed 40 TOP 70 com
Slide 10: Company Overview
AgroGeneration Company Overview
Slide 11: AgroGeneration: Top Crop Producer, Map of Land Assets
Among TOP 5 leading crop producing companies, of which one of the TOP 3 most effective companies Among TOP 10 largest players on the ag market of Ukraine in terms of controlled land bank French public company, listed on NYSE Alternext in Paris, with 31% free-float Strong management team with a prove
Slide 12: Milestones of 10-year Development
AgroGeneration Milestones of 10-year Development – Historical Background 2016 Further strengthening of the Group’s efficiency, continuing to consolidate operational and financial fundamentals of the business 2015 Spectacular recovery of the balance sheet from the debt burden through successful compl
Slide 13: A Solid Commercial Strategy
AgroGeneration A Solid Commercial Strategy AgroGeneration. The List of the Largest Export Direct sales to exporters and processors Purchasers in 2016, k tons Top-tier purchasers: Bunge, Cargill, COFCO, Louis Bunge 25.7 Dreyfus, Glencore, Kernel, ADM COFCO 15.0 Risk hedging through forward contracts
Slide 14: 2016 Production & Results
AgroGeneration 2016 Production & Results
Slide 15: Production Performance
2016 Production Production Performance AgroGeneration. 2014-2016 Crop Mix Dynamics(*) Wheat, sunflower, and barley are the main cash producing crops 8% 1% Wheat ~400k tons Rapeseed (along with wheat 11% 7%1% Sunflower produced and sunflower) is one of the annually 9% 33% Barley 4% 1% most profitable
Slide 16: Profit and Loss Statement - Key Financial Highlights
2016 Full-Year Results Profit and Loss Statement - Key Financial Highlights On 2016 crop year, AGG posted an excellent agronomic performance AGG’s pro-active crop management strategy, together with strict cost management, enabled the group to post an EBITDA of €19.4 million and to demonstrate for th
Slide 17: Focus on Gross Profit and EBITDA
2016 Full-Year Results Focus on Gross Profit and EBITDA Gross profit was nearly the same as the previous year's, at €23.2 million, as the Group successfully made up for its first-half lag. AgroGeneration was able to offset the impact of the decline in the change in fair value of winter crops as well
Slide 18: Strong Decrease of the Financial Expenses
2016 Full-Year Results Strong Decrease of the Financial Expenses Financial expenses declined significantly to €12.4 million versus €19.6 million in 2015 2015 2016 Financial interests 7,852 7,405 Realized forex loss 2,491 1,752 Unrealised forex loss 10,859 2,982 Other loss (gain) (1,646) 362 Net fina
Slide 19: Balance Sheet - Key Financial Highlights
2016 Full-Year Results Balance Sheet - Key Financial Highlights Simplified Balance Sheet as of 31st december 2016 Decrease of Property, Plant and Equipement mainly (in € thousands) 2015 2016 driven by depreciation and forex variation Property, Plant and Equipement 43,070 34,176 Inventories 14,251 25
Slide 20: Outlook
AgroGeneration | Outlook
Slide 21: Outlook for 2017
Outlook for 2017 Economic & politic overview Ukrainian economy was able to start recovery posting a growth of 2.2% in 2016 Ukrainian government continues to pursue a comprehensive structural reform agenda with the ultimate goal to ensure sustainable economic growth in the country 2017 crop year off
Slide 22: Mid-Term Perspectives: Opportunities Overview
Mid-Term Perspectives Opportunities Overview Additional investments will provide growth opportunities to expand existing business lines of AgroGeneration and to enter into new ones through vertical and horizontal integration Operational farms for Other agriculture related Storage basic agricultural
Slide 23: Appendices – Group Background Information
AgroGeneration Appendices – Group Background Information
Slide 24: Infrastructure & Storage Capacities
AgroGeneration Infrastructure & Storage Capacities AgroGeneration. Infrastructure Map The Company owns storage facilities of up to 240,000 tons, including both elevators and horizontal storage capacities Today AgroGeneration’s farms are quite self- sufficient in terms of securing its crop annually,
Slide 25: Assets Overview
AgroGeneration Assets Overview Around 120,000 ha of farmlands are leased by the Group 94% of lands operated by AGG have completed registration status (the other 6% are in process) The average duration of lease agreements is 10.5 years The Company has a dedicated lease management team with state-of-t
Slide 26: Chaired by an Experienced Operations and Management Team
AgroGeneration Chaired by an Experienced Operations 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 Operations Officer experienced private equity investor in Eastern Europe J
Slide 27: Current Shareholders and Investors
AgroGeneration Current Shareholders and Investors AgroGeneration Shareholding Structure as Konkur: of December 31, 2016 Majority shareholder of AgroGeneration Investment holding company 31,3% Controlled by SBF IV (run by SigmaBleyzer) 57,2% 1,2% 4,1% 6,2% Konkur Investment Limited Green Alliance Gra