Rusagro Group · RUS:RAGR

Rusagro — Ros Agro — H1 2016 Earnings Presentation

28 slides from Rusagro's earnings presentation, Aug 26, 2016

  1. Slide 1: Investor presentation 1H 2016 and Q2 2016

    ROS AGRO PLC Investor presentation 1H 2016 and Q2 2016 26 August 2016

  2. Slide 2: Table of Contents

    Table of Contents 1 Summary key indicators 1H 2016 and Q2 2016 (IFRS) 3 2 Business Overview by division (IFRS) 8 3 Additional information 19 2

  3. Slide 3: Section 1: Summary Key Indicators (IFRS)

    Section 1 Summary Key Indicators (IFRS) 1H 2016 and Q2 2016 vs 1H 2015 and Q2 2015

  4. Slide 4: Actual 1H 2016 vs Actual 1H 2015

    Net revenue, Adjusted EBITDA: Actual 1H 2016 vs Actual 1H 2015 Comments Net revenue (IFRS) Actual 1H 2016 vs Actual 1H 2015 45,000 Net Revenue increased by RR 5,621 million (+17%): 40,000 3,456 (493) 38,210 • Sugar sales increased by RR 961 million (+7%) thanks to sales price growth. • Meat sales de

  5. Slide 5: Actual Q2 2016 vs Actual Q2 2015

    Net revenue, Adjusted EBITDA: Actual Q2 2016 vs Actual Q2 2015 Comments Net revenue (IFRS) Actual Q2 2016 vs Actual Q2 2015 Net Revenue increased by RR 2,006 million (+11%): 21,000 • Sugar sales decreased by RR 117 million (-1%) due to decrease in sales volumes, 1,788 88 20,472 which was partly comp

  6. Slide 6: Debt profile (as of 30 June 2016)

    Debt profile (as of 30 June 2016) Comments Debt position and liquidity management • Gross debt decreased by RR 6,097 million (-12%) to RR 43,801 million Variance • Net debt decreased by RR 17,719 million to RR -2,573 million. 31 December in RR million 30 June 2016 • 68% of total gross debt is subsid

  7. Slide 7: Cash Flows: Actual 1H 2016 vs Actual 1H 2015

    Cash Flows: Actual 1H 2016 vs Actual 1H 2015 Comments Cash Flows according to Management view (Not IFRS presentation)**RR m illion Actual Actual Variance s In 1H 2016 cash and cash equivalents increased by RR 6,064 million from RR 4,402 million to RR 1H 2016 1H 2015 Units % 10,466 million. Cash flow

  8. Slide 8: Section 2: Business Overview by division (IFRS)

    Section 2 Business Overview by division (IFRS) 1H 2016 and Q2 2016 vs 1H 2015 and Q2 2015

  9. Slide 9: Sugar Key indicators 1H 2016 vs 1H 2015

    Sugar Key indicators Actual 1H 2016 vs Actual 1H 2015 (IFRS) Comments Sugar: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR +961 million, +7%): 17,000 40% • The increase in sales is caused by growth in sales prices from 39.6 ths rur/tn up to 42.1 15,219 15,000 14,258 ths rur/tn (excl. V

  10. Slide 10: Sugar Key indicators Q2 2016 vs Q2 2015

    Sugar Key indicators Actual Q2 2016 vs Actual Q2 2015 (IFRS) Comments Sugar: sales, Adjusted EBITDA and Adjusted EBITDA Sales (RR -117 million, -1%): margin • The main factor is a decrease in sales volume (-23 ths tn, -10% ) that was partly offset 30% by an increase in sales prices (2.9 ths rur/tn,

  11. Slide 11: Meat Key indicators 1H 2016 vs 1H 2015

    Meat Key indicators Actual 1H 2016 vs Actual 1H 2015 (IFRS) Comments Meat: sales, Adjusted EBITDA and Adjusted EBITDA Sales (RR -619 million, -7 %): 10,000 margin 60% • sales volume of livestock pigs decreased by 44 ths tn (-57%) from 78 ths tn to 34 ths tn; 8,476 • sales volume of processed pork ro

  12. Slide 12: Meat Key indicators Q2 2016 vs Q2 2015

    Meat Key indicators Actual Q2 2016 vs Actual Q2 2015 (IFRS) Comments Sales (RR -281 million, -6 %): Meat: sales, Adjusted EBITDA and Adjusted EBITDA • sales volume of livestock pigs decreased by 20 ths tn (-53%) from 38 ths tn to 18 ths tn; 6,000 margin • sales volume of processed pork rose by 17 th

  13. Slide 13: Agriculture Key indicators 1H 2016 vs 1H 2015

    Agriculture Key indicators Actual 1H 2016 vs Actual 1H 2015 (IFRS) Comments Agriculture: sales, Adjusted EBITDA and Adjusted 6,000 EBITDA margin 50% Sales (RR +2,316 million, +104%): 47% The major positive factors are: • an increase in sales volumes of soy, corn and sunflower 4,546 45% The major neg

  14. Slide 14: Agriculture Key indicators Q2 2016 vs Q2 2015

    Agriculture Key indicators Actual Q2 2016 vs Actual Q2 2015 (IFRS) Agriculture: sales, Adjusted EBITDA and Adjusted Comments EBITDA margin 46% 50% Sales (RR +528 million, +80%): The major positive factors are: 40% • an increase in sales volumes of soy and corn. The major negative factor is: 1,300 1,

  15. Slide 15: Oil & Fats Key indicators 1H 2016 vs 1H 2015

    Oil & Fats Key indicators Actual 1H 2016 vs Actual 1H 2015 (IFRS) Comments Oil & Fats: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR +3,456 million, +42%: EZHK RR +794 million, +22%; SAPP RR +2,145 million, +42%; Far East RR +835 million, +96% and Eliminations RR -319 million). 11,649

  16. Slide 16: Oil & Fats volumes and prices 1H 2016

    Oil & Fats Key indicators Actual 1H 2016 vs Actual 1H 2015 (IFRS) Comments Oil & Fats Yekaterinburg: volume and prices 40 80 Sales and prices in Yekaterinburg fat plant (EZHK): 76.4 • sales volume of mayonnaise increased by 5.8 ths tn (+21%) with 7% increase in price; 33 33 • sales volume of margari

  17. Slide 17: Oil & Fats Key indicators Q2 2016 vs Q2 2015

    Oil & Fats Key indicators Actual Q2 2016 vs Actual Q2 2015 (IFRS) Comments Oil & Fats: sales, Adjusted EBITDA and Adjusted Sales (RR +1,788 million, +43%: EZHK RR +446 million, +24%; SAPP RR +1,673 million, EBITDA margin +73%; Far East RR +147 million, +26% and Eliminations RR -478 million). 6,500 5

  18. Slide 18: Oil & Fats volumes and prices Q2 2016

    Oil & Fats Key indicators Actual Q2 2016 vs Actual Q2 2015 (IFRS) Comments Oil & Fats Yekaterinburg: volume and prices Sales and prices in Yekaterinburg fat plant (EZHK): • sales volume of mayonnaise increased by 3.6 ths tn (+24%) with 4% increase in price; 76.9 • sales volume of margarine decreased

  19. Slide 19: Section 3: Additional information

    Section 3 Additional information

  20. Slide 20: Statement of Comprehensive income (IFRS)

    Statement of Comprehensive income (IFRS) ROS AGRO PLC RR m illion Variances (*) In 2015 full-year financial statements Item Actual 1H 2016 Actual 1H 2015 (*) the Group changed the way of Units % presentation of gain/ loss on initial Sales 38,210 32,589 5,621 17 recognition of agricultural produce an

  21. Slide 21: Adjusted EBITDA 1H 2016 Breakdown by divisions

    Adjusted EBITDA 1H 2016 (IFRS) Breakdown by divisions ROS AGRO PLC RR m illion 1H 2016 Sugar Meat Agriculture Oil and Fat Other Elim ination Total Sales 15,219 7,858 4,546 11,649 50 (1,112) 38,210 Net gain / (loss) on revaluation of biological assets and agricultural produce - (472) (1,278) - - (1,6

  22. Slide 22: Adjusted EBITDA 1H 2015 Breakdown by divisions

    Adjusted EBITDA 1H 2015 (IFRS) Breakdown by divisions ROS AGRO PLC RR m illion 1H 2015 Sugar Meat Agriculture Oil and Fat Other Elim ination Total Sales 14,258 8,476 2,230 8,193 19 (588) 32,589 Net gain / (loss) on revaluation of biological assets and agricultural produce - 600 (366) - - (762) (528)

  23. Slide 23: Statement of cash flows (IFRS)

    Statement of cash flows (IFRS) ROS AGRO PLC RR m illion Actual Actual Variances 1H 2016 1H 2015 Units % Cash flow s from operating activities Profit before incom e tax 2,105 7,954 (5,849) (74) Adjustments for non-cash and non-operating (income)/expenses, net: Depreciation and amortization 1,994 1,48

  24. Slide 24: Statement of cash flows (IFRS) - continuance

    Statement of cash flows (IFRS) - continuance ROS AGRO PLC RR m illion Actual Actual Variances 1H 2016 1H 2015 Units % Cash flow s from investing activities Purchases of property, plant and equipment (3,616) (3,707) 91 2 Purchases of other intangible assets (115) (59) (56) (94) Proceeds from sales of

  25. Slide 25: Statement of cash flows according to Management view

    Statement of cash flows according to Management view (Not IFRS presentation) ROS AGRO PLC RR m illion Actual Actual Variances 1H 2016 1H 2015 Units % Cash flow s from operating activities Profit before incom e tax 2,105 7,954 (5,849) (74) Adjustments for non-cash and non-operating (income)/expenses,

  26. Slide 26: Statement of cash flows according to Management view - continuance

    Statement of cash flows according to Management view (Not IFRS presentation) – continuance ROS AGRO PLC RR m illion Actual Actual Variances 1H 2016 1H 2015 Units % Cash flow s from investing activities - - Purchases of property, plant and equipment (3,616) (3,707) 91 2 Purchases of other intangible

  27. Slide 27: Statement of financial positions (IFRS)

    Statement of financial positions (IFRS) ROS AGRO PLC RR m illion 31 December Variances 30 June 2016 2015 Units % ASSETS Current assets Cash and cash equivalents 10,466 4,402 6,064 138 Restricted cash 4 - 4 - Short-term investments 22,454 30,129 (7,675) (25) Trade and other receivables 2,344 3,504 (1

  28. Slide 28: Statement of financial positions (IFRS) - continuance

    Statement of financial positions (IFRS) - continuance ROS AGRO PLC RR m illion 31 December Variances 30 June 2016 2015 Units % Liabilities and EQUITY Current liabilities Short-term borrow ings 18,896 25,860 (6,964) (27) Trade and other payables 6,286 3,737 2,549 68 Current income tax payable 51 384

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