Rusagro Group · RUS:RAGR
Rusagro — Ros Agro — Investor Day (November 2018)
20 slides from Rusagro's investor day presentation, Nov 20, 2018
Slide 1: Analyst Day Presentation
ANALYST DAY PRESENTATION ROS AGRO PLC 20 November 2018 20 November 2018
Slide 2: Ros Agro PLC Overview
ROS AGRO PLC OVERVIEW wZrOos acro U/ a
Slide 3: Disclaimer
DISCLAIMER IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by ROS AGRO PLC (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows the oral pre
Slide 4: Company Overview
COMPANY OVERVIEW A LEADING AGRICULTURAL COMPANY IN RUSSIA WITH A 21-YEARS HISTORY AND STRONG FINANCIAL PERFORMANCE HIGHLIGHTS KEY DRIVERS OF OUR FAST-PACED DEVELOPMENT SALES 9М 2018 EBITDA 9М 2018 1 2 3 Vertically (5%) 52 RR bn 19% 10 RR bn integrated and diversified operations with State-of-the-art
Slide 5: Business Structure
BUSINESS STRUCTURE ONE OF THE LARGEST SUGAR, MEAT, AGRI AND OIL&FATS PRODUCERS IN RUSSIA WITH TOP MARKET POSITIONS BUSINESS SEGMENT MARKET SHARE PRODUCTION VOLUMES (2017) SALES ROS AGRO PLC operates …ensuring leading positions …supported by rapid …and coupled with high operation & cost efficiency in
Slide 6: Business Model and Geographical Presence
BUSINESS MODEL AND GEOGRAPHICAL PRESENCE EFFICIENT AND STABLE CLUSTER-ORIENTED BUSINESS MODEL BENEFITING FROM SCALE, VERTICAL INTEGRATION AND DIVERSIFICATION THE COMPANY IS WELL-POSITIONED TO DRIVE INDUSTRY CONSOLIDATION GIVEN ITS SCALABLE BUSINESS MODEL Tambov and Voronezh regions Yekaterinburg 3
Slide 7: Production Results
PRODUCTION RESULTS PRODUCTION GROWTH ACROSS THE SEGMENTS OVERTOOK DOMESTIC MARKET GROWTH BUSINESS PRODUCTION 2017 HIGHLIGHTS SUGAR PRODUCTION RUSAGRO Sugar Beet sugar • Sugar beet processing capacity increased from 50.3 to 53.0 thousand tonnes tn/day (+5%) 984 • Sugar plants in Kursk have been moder
Slide 8: Brands
BRANDS 12 BRANDS WITH LEADING POSITIONS IN TARGET MARKETS PLAYING IMPORTANT ROLE IN SUPPORTING OUR STRATEGY BUSINESS SEGMENT BRANDS PRODUCTS • White and brown sugar SUGAR • Loose and pressed sugar • Shaped sugar and in sticks • Buckwheat • Rice • Large cuts MEAT • Portion cuts • Small cuts • Minced
Slide 9: Latest Results by Segment
LATEST RESULTS BY SEGMENT wZrOos acro WA PLC
Slide 10: Industry Trends
INDUSTRY TRENDS PRODUCTION CONTRACTION PUSHES PRICE UP SUPPORTING THE INDUSTRY IN 2ND HALF OF 2018 SUGAR PRODUCTION RUSSIA CROPS PRODUCTION RUSSIA PORK PRODUCTION million tonnes million tonnes million tonnes 3.7 6.6 134.1 6.1 5.8 105.1 109 3.5 3.4 48.3 48.2 42 11 3.1 3.6 4.1 10.7 9.6 2016 2017/2018
Slide 11: Overview of Consolidated Results for 9M 2018
OVERVIEW OF CONSOLIDATED RESULTS FOR 9M 2018 CONSOLIDATED FINANCIAL RESULTS NET REVENUE (IFRS) ACTUAL 9M 2018 VS ACTUAL 9M 2017 Net Revenue decreased by RR 2,636 million (-5%) to RR 52,192 million: RR million • Sugar sales decreased by RR 3,259 million (-5%) as a result of a decrease in 54,829 sales
Slide 12: Sugar Financial Results Update
FINANCIAL RESULTS UPDATE POSITIVE EBITDA MARGIN DYNAMICS BUSINESS FINANCIAL RESULTS 9M 2018 HIGHLIGHTS SUGAR SEGMENT FINANCIAL RESULTS • For 9M 2018 sales (before intersegment adjustments) Revenue in RR billion decreased by 16% to RR 17.7 billion due -13% price Average sale price, rub/kg excl. VAT d
Slide 13: Oil & Fats Financial Results Update
FINANCIAL RESULTS UPDATE POSITIVE EBITDA MARGIN DYNAMICS ON THE BACK DECREASED OPERATIONAL COSTS BUSINESS FINANCIAL RESULTS 9M 2018 HIGHLIGHTS OIL&FAT SEGMENT FINANCIAL RESULTS • For 9M 2018 revenue (before intersegment Revenue in RR billion adjustments) increased by +3% as a result of +9 pp Adj. EB
Slide 14: Strategy Overview
STRATEGY OVERVIEW wZrOos acro WA PLC 14
Slide 15: Sugar Strategy
SUGAR STRATEGY SUGAR BUSINESS WILL CONTINUE TO FOCUS ON PRODUCTION EFFICIENCY BUSINESS INVESTMENTS GOALS ONGOING EXPANSION PROJECTS CAPEX* Sugar loss decrease through the Desugarization station RR billion launch of new desugarization station 3.8 Purpose: extra sugar extraction SUGAR PRODUCTION PLAN
Slide 16: Meat Strategy
MEAT STRATEGY MEAT BUSINESS GROWTH RELY ON DELIVERING EXPANSION PROJECTS AND B2C PRODUCTS DEVELOPMENT BUSINESS INVESTMENTS GOALS CAPEX PORK PRODUCTION PLAN* 377 SALES STRUCTURE PLAN 2021 RR billion thousand tonnes thousand tonnes 317 62 296 19.0 7 Consumer 20% 121 123 products 205 118 MEAT Large cut
Slide 17: Oil & Fats and Agriculture Strategy
OIL & FATS AND AGRICULTURE STRATEGY OIL & FATS BUSINESS GROWTH WILL BE TRIGGERED BY BOTTLED OIL SALES/M&A DEALS AND AGRICULTURE BUSINESS WILL CONTINUE TO FOCUS ON PRODUCTION EFFICIENCY BUSINESS INVESTMENTS GOALS EXPANSION PROJECTS Grow bottled sunflower oil sales to B2C and industrial fats productio
Slide 18: M&A Transactions
M&A TRANSACTIONS wZrOos acro WA PLC 18
Slide 19: Solnechnye Produkty Deal Highlights
SOLNECHNYE PRODUCTY DEAL HIGHLIGHTS Rusagro acquired an option to buy 85% share in Quartlink Holding Limited, owner of Solnechnye producty. Rusagro plans to buy bank debt and restructure current legal entities. Solnechnye producty includes the following assets: • three fats plants (Moscow, Saratov,
Slide 20: Contacts
CONTACTS Svetlana Kuznetsova Head of Investment Department E-mail: SKuznetsova@rusagrogroup.ru Tel.: +7 (495) 363-1661 ext. 1703 www.rusagrogroup.ru/eng 20