Rusagro Group · RUS:RAGR
Rusagro — Ros Agro — Q1 2024 Earnings Presentation
26 slides from Rusagro's earnings presentation, May 13, 2024
Slide 1: Ros Agro PLC Investors Presentation 1Q 2024
MAY 13TH, 2024 ROS AGRO PLC INVESTORS PRESENTATION 1Q 2024
Slide 2: Ros Agro PLC at a Glance 2023
ROS AGRO PLC AT A GLANCE 2023 2 Diversified Business and Vertical Integration Leading Market Positions Financial Results 2023 Agriculture Business Sugar Business № 1 № 1 277 Sugar beet Consumer margarine Sunflower oil producer • Beet sugar production and mayonnaise in Russia • Cultivation and sowing
Slide 3: Table of Contents
TABLE OF CONTENTS 3 1 Summary Key Indicators (IFRS) 1Q 2024 vs 1Q 2023 4 2 Business Overview by division (IFRS) 8 3 Overview of Debt profile and Cash Flows 15 4 Additional information 18
Slide 4: Summary Key Indicators (IFRS) 1Q 2024 vs 1Q 2023
SECTION 1 SUMMARY KEY INDICATORS (IFRS) 1Q 2024 VS 1Q 2023
Slide 5: Key Events 1Q 2024
KEY EVENTS 1Q 2024 5 Set up of a project to introduce digital platform in Oil & Fats business Rusagro-Tekh and Zhirovoy Kombinat initiated customization and implementation of digital platform (MES-systems) of IndaSoft company. Due to digital transition, enterprise management process will be optimize
Slide 6: Highlights 1Q 2024 vs 1Q 2023
HIGHLIGHTS 1Q 2024 VS 1Q 2023 6 +44% +2% -4 pp -68% -6%* -0.07* 68.3 7.3 11% 1.7 62.8 1.11 RUB bn RUB bn adj. EBITDA RUB bn RUB bn Net Debt / Adj. Net Revenue adj. EBITDA margin Net profit Net Debt EBITDA (LTM) +26% -19% +38% -67% +200% 187 58 459 204** 237 6.3 ths tn ths tn ths tn ths tn ths tn RUB
Slide 7: Net Revenue, Adjusted EBITDA: 1Q 2024 vs 1Q 2023
NET REVENUE, ADJUSTED EBITDA: 7 1Q 2024 vs 1Q 2023 Net Revenue increased by RUB 20,913 million (+44%): Net revenue (IFRS) 1Q 2024 vs 1Q 2023 RUB million • Revenue of Sugar segment increased by RUB 3,018 million (+32%) both due to higher sales volume of sugar and the increase in selling price followi
Slide 8: Business Overview by Division (IFRS)
SECTION 2 BUSINESS OVERVIEW BY DIVISION (IFRS) 1Q 2024 VS 1Q 2023
Slide 9: Sugar Key Indicators 1Q 2024 vs 1Q 2023 (IFRS)
SUGAR 9 KEY INDICATORS 1Q 2024 VS 1Q 2023 (IFRS) Adj. EBITDA 1Q 2023 2,010 Sales (RUB +3,018 million, +32%): • Growth of sales prices following the increase of market prices; Sales — Price factor 895 • Increase in sales volume following the increase in sugar beet processing volume in 2023/2024 seaso
Slide 10: Meat Key Indicators 1Q 2024 vs 1Q 2023 (IFRS)
MEAT 10 KEY INDICATORS 1Q 2024 VS 1Q 2023 (IFRS) Adj. EBITDA 1Q 2023 447 Sales (RUB -119 million, -1%): • Increase in average sales prices for meat products and livestock; Sales — Price factor 1,622 • Decrease in production volume following pigs’ diseases in FY 2023. Sales — Volume factor (1,741) Ad
Slide 11: Agriculture Key Indicators 1Q 2024 vs 1Q 2023 (IFRS)
AGRICULTURE 11 KEY INDICATORS 1Q 2024 VS 1Q 2023 (IFRS) Adj. EBITDA 1Q 2023 (116) Sales (RUB -1,590 million, -27%): • Increase in wheat sales volumes in the climate of negative dynamics of world wheat Sales — Price factor 202 prices; Sales — Volume factor (1,792) • Decrease in sugar beet sales volum
Slide 12: Oil & Fats and NMGK Key Indicators 1Q 2024 vs 1Q 2023 (IFRS)
OIL & FATS AND NMGK 12 KEY INDICATORS 1Q 2024 VS 1Q 2023 (IFRS) Oil & Fats Sales (RUB +6,499 million, +28%): Adj. EBITDA 1Q 2023 4,161 • Increase in sales volumes of bulk oil and meal due to increased processing capacity of Sales — Price factor (846) Balakovo oil extraction plant after modernization
Slide 13: Agriculture Business Overview
AGRICULTURE 13 BUSINESS OVERVIEW Agricultural works calendar for 2024* 1Q 2Q 3Q 4Q Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Winter wheat Spring wheat Sugar beet Soybean Central region Soybean Far East region Sunflower Corn Sowing Growing Harvesting (*) Average terms by crops (weighted average
Slide 14: Commodity Prices
COMMODITY PRICES 14 Sugar ISCO-Krasnodar, RUB/kg excl. VAT Sunflower meal, EXW, RUB/kg excl. VAT Source: ISCO-IKAR Source: IKAR 53.2 54.7 14.0 14.6 14.0 13.6 52.1 12.9 12.9 12.9 12.8 12.4 13.0 12.3 11.8 55.5 57.7 52.0 54.8 53.6 53.8 52.9 52.5 51.8 2023 2023 47.8 48.8 11.9 11.8 11.1 45.6 2024 2024 Ja
Slide 15: Overview of Debt Profile and Cash Flows
SECTION 3 OVERVIEW OF DEBT PROFILE AND CASH FLOWS
Slide 16: Debt Profile as of 31 March 2024
DEBT PROFILE AS OF 31 MARCH 2024 16 Debt position and liquidity management Gross debt by repayment maturity RUB million RUB million 31 March 31 December Variance 2024 2023 Units % 2 3-5 More than 1 year years years 5 years Gross debt 128,433 127,533 900 1 Short-term borrowings 66,769 68,035 (1,266)
Slide 17: Cash Flows: 3M 2024 vs 3M 2023
CASH FLOWS: 3M 2024 VS 3M 2023 17 Cash Flows according to Management view (not IFRS presentation)*, RUB million 1Q 2024 1Q 2023 Adj. EBITDA 7,303 7,139 Adjustments to EBITDA 1,102 (148) Inventories and bio assets 3,013 (7,695) AR and AP (576) 16,738 Other 985 262 Income tax paid (1,580) (292) Net ca
Slide 18: Additional Information
SECTION 4 ADDITIONAL INFORMATION
Slide 19: Consolidated Statement of Comprehensive Income (IFRS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS) 19 FOR THE THREE MONTHS ENDED 31 MARCH 2024 RUB million Varianсes Description 1Q 2024 1Q 2023 Units % Sales 68,309 47,395 20,914 44 Net gain / (loss) on revaluation of biological assets and (1,969) (547) (1,422) (260) agricultural produce Cost of
Slide 20: Segment Information for Three Months Ended 31 March 2024
SEGMENT INFORMATION 20 FOR THE THREE MONTHS ENDED 31 MARCH 2024 RUB million Sugar Meat Agriculture Oil and Fat NMGK Other Elimination Total Sales 12,429 10,607 4,306 29,856 14,520 505 (3,913) 68,309 Net gain / (loss) on revaluation of biological assets and - 956 (679) - - - (2,246) (1,969) agricultu
Slide 21: Segment Information for Three Months Ended 31 March 2023
SEGMENT INFORMATION 21 FOR THE THREE MONTHS ENDED 31 MARCH 2023 RUB million Sugar Meat Agriculture Oil and Fat NMGK Other Elimination Total Sales 9,411 10,725 5,896 23,357 - 464 (2,457) 47,395 Net gain/ (loss) on revaluation of biological assets and - 1,327 (1,415) - - - (459) (547) agricultural pro
Slide 22: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF СASH FLOWS FOR THE THREE MONTHS ENDED 31 MARCH 2024* 22 RUB million Variance 12M 2023 12M 2022 Units % Cash flows from operating activities Profit before income tax 3,111 7,159 (4,048) (57) Adjustments for non-cash and non-operating (income)/expenses, net: Depreciation and
Slide 23: Consolidated Statement of Cash Flows (continued)
CONSOLIDATED STATEMENT OF СASH FLOWS 23 FOR THE THREE MONTHS ENDED 31 MARCH 2024* - CONTINUANCE RUB million Variance 3M 2024 3M 2023 Units % Cash flows from investing activities Purchases of property, plant and equipment (6,224) (2,000) (4,225) (211) Purchases of other intangible assets (123) (289)
Slide 24: Consolidated Statement of Financial Position (IFRS)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) 24 AS AT 31 MARCH 2024 RUB million 31 March 31 December Variances 2024 2023 Units % ASSETS 409,054 410,966 (1,912) (0) Current assets Cash and cash equivalents 16,145 25,937 (9,792) (38) Short-term investments 16,602 2,289 14,313 625 Trade and othe
Slide 25: Consolidated Statement of Financial Position (continued)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) 25 AS AT 31 MARCH 2024 - CONTINUANCE RUB million 31 March 31 December Variances 2024 2023 Units % Liabilities and EQUITY 409,054 410,966 (1,912) (0) Current liabilities Short-term borrowings 66,769 68,035 (1,266) (2) Lease liabilities 1,097 1,098 (
Slide 26: Net Finance Income/(Expense)
NET FINANCE INCOME/ (EXPENSE) 26 Comments Net finance income/ (expense) RUB million Net finance income in 1Q 2023 in the amount of Variance RUB 3,498 million decreased to RUB 816 1Q 2024 1Q 2023 Units % million in 1Q 2024 (RUB -2,681 million decrease) Net interest expense (1,420) (1,925) 505 26 due