Kernel Holding S.a. · GPW:KER
Kernel — Investor Presentation (July 2011)
17 slides from Kernel's investor presentation, July 2011
Slide 1: Kernel Holding S.A. Company Presentation
KERNEL HOLDING S.A. C O M PA N Y P R E S E N TA T I O N
Slide 2: Disclaimer
Disclaimer The information in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of th
Slide 3: Company Overview
COMPANY OVERVIEW KERNEL
Slide 4: Kernel – leading agribusiness company in Ukraine
Kernel – leading agribusiness company in Ukraine №1 №1IN UKRAINE OILSEED CRUSHER OILSEED CRUSHER IN UKRAINE №1 BEXPORTER ULK SUNFLOWER OIL №1 IN UKRAINE №1 BULK SUNFLOWER BOTTLED OIL PRODUCER AND MARKETER IN UKRAINE OIL EXPORTER IN UKRAINE №1 LEADINGOIL BOTTLED AND GRAIN ORIGINATOR PRODU MARKETER
Slide 5: Integrated business model
Integrated business model Farming + Sourcing + Processing + Logistics + Distribution = added Kernel value 180 000 ha of farm land grain & oilseed origination 7 oilseed crushing plants 2.3 million tons grain 3.8 million tons of FY2011 guidance fully cultivated from over 2 000 farmers totalling 2.6 Mi
Slide 6: Strategy
Strategy Leadership Conservative Risk Financial Targets & Continued Growth Management & Discipline Leading positions in each Key risk management policies Sustainable segment business segment operating margins No crop financing Drive market consolidation in Ukraine “Balanced-book” policy throug
Slide 7: Ukraine: undisputed world leader in production and export of sunflower oil
Ukraine: undisputed world leader in production and export of sunflower oil USA European Union Russia World Yields (t/ha) 1.3 million tons sunflower seed production 6.7 million tons 4.7 million tons 0.3 million tons sunflower oil production sunflower seed production sunflower seed production 0.1 mill
Slide 8: Ukraine: global leader in sunflower oil trade and major exporter of grain
Ukraine: global leader in sunflower oil trade and major exporter of grain Ukraine Accounts for Half Ukrainian Sunflower Oil Exports of Global Sunflower Oil Export by Destination, season 2009/2010 Ukraine is the world’s largest producer and exporter of sunflower oil Ukraine is well positioned ove
Slide 9: FY2010 Contribution by operating segment
FY2010 Contribution by operating segment Revenue by segment (1) Operating profit by segment (2) (USD Mio / % of total revenue) (USD Mio / % of total operating profit) $112,6 / 10.2% $53,7 / 4.9% $71,8 / 39.5% $41,7 / 3.8% $24,9 / 13.7% $400,7 / 36.5% $40,1 / 22.0% $22,2 / 12.2% $24,7 / 2.2% $14,2 /
Slide 10: Segmental Review
SEGMENTAL REVIEW KERNEL
Slide 11: Bottled oil segment
Bottled oil segment Kernel – No1 bottled oil producer and marketer Bottled oil sales in Ukraine with 35% market share (% of total Ukraine market, Kernel estimate) Consolidated bottled oil sector Kernel and Bunge supply 64% of bottled oil sold in Ukraine Other 29.0 % (Kernel estimate) Kernel and
Slide 12: Bulk oil segment
Bulk oil segment Crushing capacity (% of Ukraine capacity, Kernel estimate) Kernel – No1 oilseed crusher in Ukraine with 2.6 million tons/year sunflower seed crushing capacity KERNEL 36.0 % Consolidated crushing industry in Ukraine Other 44.2 % K ernel – 36.0% estimated market share (percent of Uk
Slide 13: Export terminals segment
Export terminals segment TransBulkTerminal (“TBT”) 2nd largest grain terminal in Ukraine, 4 million tons/year grain throughput capacity (20% of total Ukrainian grain throughput capacity) Located in Illichevsk, major Black Sea port and key gateway to international grain markets Owned and operated by
Slide 14: Grain segment
Grain segment Leading grain supply chain operator in Ukraine with average 10% market share of grain and Major grain exporters in season 09/10 (1) oil-bearing crops export market KERNEL 8.6% Origination, merchandizing and export of wheat, barley, corn, rapeseed and soy N ibulon 16.7% Kernel, Glenc
Slide 15: Silo services segment
Silo services segment Largest private grain silo network in Ukraine with .3 million tons grain storage capacity 2 Strategic location of silos in key origination areas and in vicinity of Kernel crushing plants All silos connected to national railway network, allowing grain shipment to port by railcar
Slide 16: Farming segment
Farming segment Kernel in farming since 2002 Kernel farming acreage 200 000 ha Prime location of farms in grain and sunflower belt of Ukraine 150 000 Farms benefit from close location to Kernel grain silos and processing plants 100 000 2011 harvest to include sugar beet production for processing in
Slide 17: Sugar market opportunity
Sugar market opportunity Attractive development opportunity Kernel sugar production platform Ukraine market suffers from shortage of domestically pro- 2nd largest sugar beet processing capacity in Ukraine: 4 sugar duced sugar plants total 2 million tons/year sugar beet processing capacity Average