Astarta Holding Plc · GPW:AST
Astarta — H1 2020 Earnings Presentation
31 slides from Astarta's earnings presentation, Aug 12, 2020
Slide 1: ASTARTA 1H20 operating and financial results
ASTARTA 1H20 operating and financial results
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: 1H20 Highlights
1H20 Highlights Summary P&L EURk 1H19 1H20 • ASTARTA’s consolidated revenues amounted to EUR172m in Revenues, including 225 183 172 129 1H20, 24% down y-o-y, as majority of the grain and oilseeds’ Agriculture 103 446 54 473 2019 harvest were sold by YE19. As a result the Agricultural Sugar productio
Slide 4: 1H20 Highlights: Cash Flows and Balance Sheet
1H20 Highlights Summary Cash Flows Summary Balance Sheet EURk 1H19 1H20 EURk 1H19 YE19 1H20 Pre-tax income 29 027 5 629 Right-of-use asset (mainly land) 126 529 142 035 120 695 D&A 29 533 30 736 Biological assets (non-current) 18 121 30 011 26 072 Financial interest expenses, net 9 117 4 790 PP&E an
Slide 5: Agriculture
Agriculture Sales volumes of key crops Financial results kt 2017 2018 2019 1H19 1H20 EURk 2017 2018 2019 1H19 1H20 Corn 394 358 714 493 335 Revenues, including 140 918 126 765 205 712 103 446 54 473 Wheat 383 270 266 17 4 Corn 55 948 52 846 109 973 75 351 52 964 Sunseeds 55 78 103 18 0.1 Wheat 54 00
Slide 6: Agriculture Achievements
Agriculture Key crop planting area - 2019 vs 2020, kha • Among Top 5 agricultural land banks in Ukraine with over 66 62 230kha • Harvest of grain and oilseed crops in excess of 1.0mt in 50 48 40 2018 and 2019 Achievements 31 35 34 33 • The largest sugar beet grower with 1.7mt harvest in 27 2019 • Cr
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 400 Ending stocks Stock to use 35% 350 Ending stocks Stock to use 45% 350 30% 300 40% 300 35% 25% 250 30% 250 20% 200 25% 200 15% 150 20% 150 15% 100 10% 100 10% 50 5% 50 5% 0
Slide 8: Sugar production
Sugar production Production Financial results Unit 2017 EURk 2018 2019 2017 2018 2019 1H19 1H20 Sugar production kt 463 352 Revenues 302 200 565 119 436 116 893 55 322 56 802 Sugar beet processed kt 3 077 Cost of sales 2 472 1 950 (130 972) (103 779) (107 637) (50 351) (47 334) Own sugar beet % 79%
Slide 9: Sugar production, consumption and exports - Ukraine
Sugar production Sugar production, consumption and exports - Ukraine 2,5 2.3 2 000,0 2.2 2.1 2.1 2.1 1 800,0 • The domestic market has been slowly adjusting 2,0 1.8 1.8 1 600,0 to lower consumption volume by reducing sugar 1.7 1.7 1.6 1.6 1.5 1 400,0 beet planting area to 209kha in 2020 (according 1
Slide 10: Sugar production key achievements
Sugar production • Preserved leadership position locally with a market share of over 20% in 2019 Key achievements • According to Ukrsugar, the Top-5 Ukrainian sugar producers: ASTARTA – 20.4%, Radekhivskyi Sugar - 20.0%, Ukrprominvest – 15.5%, Svitanok – 6.0%, A’SPIK – 4.8% • Sustained high quality
Slide 11: Soybean processing
Soybean processing Production Financial results kt 2017 2018 2019 1H19 1H20 EURk 2017 2018 2019 1H19 1H20 Soybean processed 218 215 231 125 128 Revenues, including 72 713 74 290 82 718 45 978 40 422 Soybean meal 153 158 159 92 93 Soybean meal 46 512 48 081 53 975 30 277 27 392 Soybean oil 40 41 44 2
Slide 12: Cattle farming
Cattle farming Milk production, herd and productivity Financial results 2017 2018 2019 1H19 1H20 EURk 2017 2018 2019 1H19 1H20 Milk production, kt 110 106 96 52 47 Revenues 31 795 29 309 34 603 16 749 18 080 Herd, k heads 27 27 24 25 22 Cost of sales (23 355) (24 852) (27 692) (13 374) (14 243) Milk
Slide 13: Strategy and outlook
Strategy and outlook Financial goals • Active working capital management and capex at 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 agric
Slide 14: Covid-19 response
Covid-19 response Personnel Finances • Intensive communication and education campaign on COVID to • The Company keeps close contact with its lending banks, with promote prevention among employees majority of them having financed its business for many years • Mandating working from home for office-ba
Slide 15: Summary Financials
(()) ASTARTA- KYIV agri-industrial holding Summary Financials
Slide 16: Last three years highlights
Last three years highlights Revenues, EURm Investments, EURm ∑459 ∑448 ∑57 12 ∑51 16% ∑372 7 5 12% 32 35 14% 14% 73 23 83 7 12% 29 74 ∑24 10% 141 39 206 8% 34 127 2 6% 5% 201 4% 21 1 119 117 13 2% 10 0% 2017 2018 2019 2017 2018 2019 Sugar Agriculture Soybean processing Cattle farming Other Sugar Agr
Slide 17: Agriculture FCF 2006-2019
Agriculture FCF of the agricultural segment for 2006 – 2019 100 250 80 200 60 40 150 20 100 - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 - 20 50 - 40 EBITDA, EURm Capex, EURm - 60 FCF, EURm Average revenue per ton of product sold (rhs), EUR - Revenue per ton of product sol
Slide 18: Sugar FCF 2006-2019
Sugar FCF of the sugar segment for 2006 - 2019 80 900 800 60 700 40 600 500 20 400 - 300 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 200 - 20 100 - 40 EBITDA, EURm Capex, EURm 0 FCF, EURm Average revenue per ton of product sold (rhs), EUR Revenue per ton of product sold (rh
Slide 19: Soybean processing FCF 2013-2019
Soybean processing FCF of the soybean processing segment for 2013 - 2019 25 450 20 400 15 10 350 5 300 - (5) 2013 2014 2015 2016 2017 2018 2019 250 (10) 200 (15) 150 (20) (25) 100 EBITDA, EURm Capex, EURm FCF, EURm Average revenue per ton of product sold (rhs), EUR Revenue per ton of product sold (r
Slide 20: Cattle farming FCF 2006-2019
Cattle farming FCF for the cattle farming segment for 2006 - 2019 20 450 400 15 350 10 300 250 5 200 - 150 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 100 -5 50 EBITDA, EURm Capex, EURm - 10 FCF, EURm Average revenue per ton of product sold (rhs), EUR - Revenue per ton of p
Slide 21: Consolidated Balance sheet
Consolidated Balance sheet EURm 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H19 1H20 Right-of-use asset (mainly - - - - - - - - - - - - 110 142 127 121 land) Biological assets 4 6 5 13 15 20 44 45 30 19 15 22 17 30 18 26 PP&E and other 33 79 79 111 148 231 244 321 237 232
Slide 22: Consolidated statement of profit and loss
Consolidated statement of profit and loss EURm 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H19 1H20 Revenues 68 88 123 128 219 304 353 327 352 314 369 459 372 448 225 172 Cost of sales (55) (67) (96) (83) (128) (193) (286) (293) (268) (219) (257) (355) (324) (400) (203) (1
Slide 23: Consolidated Cash Flows
Consolidated Cash Flows EURm 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H19 1H20 PBIT 6 23 (11) 30 80 90 45 21 (67) 14 85 63 (16) 1 29 6 Depreciation and amortization 4 5 9 8 13 17 25 27 25 22 29 37 46 63 30 31 Gain on acquisition of subsidiaries (4) (5) (9) (0) (4) (13)
Slide 24: Appendix
(()) ASTARTA- KYIV agri-industrial holding Appendix
Slide 25: ASTARTA - Value chain
ASTARTA - Value chain Crop growing Storage, Handling Processing & Logistics Primary agriculture Storage & Handling Sugar • Among Ukraine’s Top 5 agriproducers • 7 grain and oilseeds silos with • 20%-35% share of the local sugar market by by land bank and production storage capacity – 550kt consumpti
Slide 26: Valuation and capital structure
Valuation and capital structure EV 2017-2019 8 6.8 7 6 4.8 4.7 5 3.7 3.5 134 4 94 3 309 104 139 2 1.1 220 136 130 1 2017 2018 2019 0 Net financial debt Lease liabilities Mcap Net debt/EBITDA EV/EBITDA Equity Coverage Top 10 shareholders Board of Directors Name Share Director Position Background IPOP
Slide 27: Debt profile
Debt profile Debt breakdown by currency Debt breakdown by maturity as of 30 June 2020 as of 30 June 2020 contractual maturity UAH Less than denominated 1 year; loans, 0% 19% From 1 to 2 years; More than 7% USD 2 years; denominated 74% loans, 100% Debt breakdown by lenders Working Capital Lines Other
Slide 28: ASTARTA IT solutions
ASTARTA IT solutions • AgriChain is a proprietary integrated multi-module IT solution for agribusiness management. The core of AgriChain is a WEB-portal, consisting of eight modules Launched • AgriChain Land is the farmland management module covering land mapping, lease agreements, leaseholders’ and
Slide 29: Sustainability framework
Sustainability framework • Compliance with the regulatory requirements of Ukrainian legislation in industrial safety, labor and environmental protection • Compliance with international standards in social and environment spheres • Determination of environmental aspects and risks when planning furthe
Slide 30: Key ESG facts
Key ESG facts Energy consumption Waste by disposal method Water consumption, m3/t of s.b. Gas, m3/t of s.b Disel, kg/ha Other; 0.05% Ecological Reuse; 0.9 85 Recycling; 75 74 67% 0.85 33% 0.82 24 23 23 2017 2018 2019 2017 2018 2019 Employees by gender Lost day rate CSR budget, EURm 6167 Social 4669
Slide 31: FV of biological assets
FV of biological assets Crops calendar Mar Apr May Jun Jul Aug Sep Oct Nov Dec Assets in agriculture Sugar beets Winter crops Biological assets Agricultural produce Corn Agriculture Agriculture Sunflower Non-current Current produce produce seeds Livestock unharvested at the point of subsequent crops