Rusagro Group · RUS:RAGR
Rusagro — Ros Agro — Q1 2018 Earnings Presentation
24 slides from Rusagro's earnings presentation, May 14, 2018
Slide 1: Investors Presentation Q1 2018
ROS AGRO PLC Investors Presentation Q1 2018 14 May 2018
Slide 2: Table of Contents
Table of Contents 1 Q1 2018 (IFRS) Summary 3 2 Business Overview by division (IFRS) 8 3 Additional information 14 2
Slide 3: Summary Key Indicators (IFRS)
Section 1 Summary Key Indicators (IFRS) Q1 2018 vs Q1 2017
Slide 4: Net revenue and Adjusted EBITDA
Net revenue, Adjusted EBITDA: Actual Q1 2018 vs Actual Q1 2017 Comments Net revenue (IFRS) Actual Q1 2018 vs Actual Q1 2017 30,000 Net Revenue decreased by RR 3,512 million (-19%): • Sugar sales decreased by RR 2,197 million (-30%) as a result of a decrease in sales prices of 18,780 (2,197) sugar an
Slide 5: Debt profile (as of 31 March 2018)
Debt profile (as of 31 March 2018) Comments Debt position and liquidity management Variance • Gross debt increased by RR 1,014 million (+2%) up to RR 47,666 million in RR million 31 March 2018 31 December 2017 • Net debt increased by RR 1,596 million (24%) to RR 8,200 million Units % • Major banks a
Slide 6: Statement of financial position: key changes
Statement of financial position: Key changes 31 March 2018 vs 31 December 2017 Comments 170,000 Assets as of 31 March 2018 vs 31 December 2017 ASSETS • PPE & LT biological assets* increased by RR 1,492 million (RR +1,798 million in Meat, RR +283 million in Oil, RR -724 million in Agriculture). Highe
Slide 7: Cash Flows: Q1 2018 vs Q1 2017
Cash Flows: Actual Q1 2018 vs Actual Q1 2017 Cash Flows according to Management view (Not IFRS presentation)** RR m illion Actual Actual Variances Comments Q1 2018 Q1 2017 Units % In Q1 2018 cash and cash equivalents decreased by RR -3,384 million from RR 4,860 million Cash flow s from operating act
Slide 8: Business Overview by division (IFRS)
Section 2 Business Overview by division (IFRS) Q1 2018 vs Q1 2017
Slide 9: Meat
Meat Key indicators Actual Q1 2018 vs Actual Q1 2017 (IFRS) Comments Meat: sales, Adjusted EBITDA and Adjusted EBITDA 6,000 margin 60% Sales (RR -405 million, -9%): • a decrease in sales volume of livestock pigs by 15 ths tn or 69%, that was partly compensated by 4,732 an increase in sales volume of
Slide 10: Sugar
Sugar Key indicators Actual Q1 2018 vs Actual Q1 2017 (IFRS) Comments Sugar: sales, Adjusted EBITDA and Adjusted EBITDA margin 10,000 40% Sales decreased(RR -2,197 million, -30%): • Sugar sales revenue decreased by RR 1,942 million due to sales price decreased by 16% and sales volume decreased by 30
Slide 11: Agriculture
Agriculture Key indicators Actual Q1 2018 vs Actual Q1 2017 (IFRS) Comments Agriculture: sales, Adjusted EBITDA and Adjusted EBITDA margin 50% Sales (RR -2,203 million, -60%): • the major positive factor is 20 ths tns (+159%) increase in sales volume of barley in Q1 2018 vs 40% 4,000 3,670 Q1 2017;
Slide 12: Oil & Fats
Oil & Fats Key indicators Actual Q1 2018 vs Actual Q1 2017 (IFRS) Comments Oil & Fats: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR +110 million, +3%: EZHK RR -412 million, -20%; SAPP RR +261 million, 13%; Far East RR +4 million and Eliminations RR +257 million). 5,000 4,368 4,478 9%
Slide 13: Oil & Fats: volumes and prices
Oil & Fats Key indicators Actual Q1 2018 vs Actual Q1 2017 (IFRS) Comments Mayonnaise, margarine and bottled oil: volume and prices 20 (excl. VAT) Sales and prices in Oil & Fats: 82 • sales volume of mayonnaise decreased by 6 ths tn (-38%) with 3% increase in price; 16 79.7 14 78.1 77.4 thousand rub
Slide 14: Additional information
Section 3 Additional information
Slide 15: Statement of Comprehensive income (IFRS)
Statement of Comprehensive income (IFRS) ROS AGRO PLC Variances Description Actual Q1 2018 Actual Q1 2017 (*) Units % Sales 15,268 18,780 (3,512) (19) Net gain/ (loss) on revaluation of biological assets and (359) (1,968) 1,610 82 agricultural produce Cost of sales (11,953) (14,397) 2,443 17 Net gai
Slide 16: Adjusted EBITDA Q1 2018 Breakdown by divisions
Adjusted EBITDA Q1 2018 (IFRS) Breakdown by divisions ROS AGRO PLC RR m illion Q1 2018 Sugar Meat Agriculture Oil and Fat Other Elim ination Total Sales 5,213 4,326 1,467 4,478 75 (291) 15,268 Net gain / (loss) on revaluation of biological assets and agricultural produce - (27) (281) - - (51) (359)
Slide 17: Adjusted EBITDA Q1 2017 Breakdown by divisions
Adjusted EBITDA Q1 2017 (IFRS) Breakdown by divisions ROS AGRO PLC RR m illion Q1 2017 Sugar Meat Agriculture Oil and Fat Other Elim ination Total Sales 7,410 4,732 3,670 4,368 16 (1,416) 18,780 Net gain/ (loss) on revaluation of biological assets and agricultural produce - (336) (1,146) - - (487) (
Slide 18: Statement of cash flows (IFRS)
Statement of cash flows (IFRS) ROS AGRO PLC RR m illion Actual Actual Variances Q1 2018 Q1 2017 Units % Cash flow s from operating activities Profit before incom e tax 233 (320) 553 - Adjustments for non-cash and non-operating (income)/expenses, net: Depreciation and amortization 1,912 1,727 186 11
Slide 19: Statement of cash flows (IFRS) - continuance
Statement of cash flows (IFRS) - continuance ROS AGRO PLC RR m illion Actual Actual Variances Q1 2018 Q1 2017 Units % Cash flow s from investing activities Purchases of property, plant and equipment (2,637) (2,875) 238 8 Purchases of other intangible assets (5) (40) 36 88 Proceeds from sales of prop
Slide 20: 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 Q1 2018 Q1 2017 Units % Cash flow s from operating activities Profit before incom e tax 233 (320) 553 - Adjustments for non-cash and non-operating (income)/expenses, net: Dep
Slide 21: Statement of cash flows, Management view - continuance
Statement of cash flows according to Management view (Not IFRS presentation) – continuance ROS AGRO PLC RR m illion (*) Including in net cash Actual Actual Variances flows on financial assets Q1 2018 Q1 2017 Units % related to financial Cash flow s from investing activities - - activities. Purchases
Slide 22: Statement of financial position (IFRS)
Statement of financial position (IFRS) ROS AGRO PLC RR m illion 31 March 31 December Variances 2018 2017 Units % ASSETS Current assets Cash and cash equivalents 1,476 4,860 (3,384) (70) Restricted cash 8 0.04 8 18,260 Short-term investments 23,425 18,458 4,967 27 Trade and other receivables 2,953 3,
Slide 23: Statement of financial position (IFRS) - continuance
Statement of financial position (IFRS) - continuance ROS AGRO PLC RR m illion 31 March 31 December Variances 2018 2017 Units % Liabilities and EQUITY Current liabilities Short-term borrow ings 7,695 8,864 (1,169) (13) Trade and other payables 6,682 6,773 (91) (1) Current income tax payable 99 64 35
Slide 24: Average FX rate, USD/RUR
Average FX rate, USD/RUR 1G RUSAGRO Ruble's exchange rate for apr. 2016 - mar. 2017 80.00 75.00 70.00 65.00 60.00 35.00 Apr-16 May-16 Jun-16 suh16 Aug 16 Sep-16 oct-16 Nov-16 Dec-16 Jan-t7 Feb-a7 Mor-17 eusn/Aus © max © min —trendline Ruble's exchange rate for apr. 2017 - mar. 2018 66.00 64,00 62.00