Rusagro Group · RUS:RAGR
Rusagro — Ros Agro — H1 2017 Earnings Presentation
30 slides from Rusagro's earnings presentation, Aug 14, 2017
Slide 1: Investor Presentation 1H 2017 and Q2 2017
ROS AGRO PLC Investor Presentation 1H 2017 and Q2 2017 14 August 2017
Slide 2: Table of Contents
Table of Contents 1 1H 2017 and Q2 2017 (IFRS) Summary 3 2 Business Overview by division (IFRS) 9 3 Additional information 20 2
Slide 3: Summary Key Indicators (IFRS)
Section 1 Summary Key Indicators (IFRS) 1H 2017 and Q2 2017 vs 1H 2016 and Q2 2016
Slide 4: Net revenue, Adjusted EBITDA: Q2 2017 vs Q2 2016
Net revenue, Adjusted EBITDA: Actual Q2 2017 vs Actual Q2 2016 Comments Net revenue (IFRS) Actual Q2 2017 vs Actual Q2 2016 22,000 Net Revenue decreased by RR 1,494 million (-7%): 20,472 (2,151) • Sugar sales decreased by RR 2,151 million (-23%) as a result of a decrease in both sales 20,000 1,062 1
Slide 5: Net revenue, Adjusted EBITDA: 1H 2017 vs 1H 2016
Net revenue, Adjusted EBITDA: Actual 1H 2017 vs Actual 1H 2016 Comments Net revenue (IFRS) Actual 1H 2017 vs Actual 1H 2016 50,000 Net Revenue decreased by RR 452 million (-1%): 45,000 • Sugar sales decreased by RR 618 million (-4%) because of a 20% drop in sugar sales prices that was partly compens
Slide 6: Debt profile (as of 30 June 2017)
Debt profile (as of 30 June 2017) Comments Debt position and liquidity management • Gross debt decreased by RR 2,501 million (-6%) to RR 42,001 million Variance • Net debt decreased by RR 2,913 million (-67%) to RR 1,429 million in RR million 30 June 2017 31 December 2016 Units % • Major banks and t
Slide 7: Statement of financial position: key changes
Statement of financial position: Key changes 30 June 2017 vs 31 December 2016 Comments Assets as of 30 June 2017 vs 31 December 2016 160,000 ASSETS 3,481 (446) (6,597) • PPE & LT biological assets* increased by RR 3,481 million (RR +2,674 million in Agriculture, RR +556 million in Meat, RR +264 mill
Slide 8: Cash Flows: Actual 1H 2017 vs 1H 2016
Cash Flows: Actual 1H 2017 vs Actual 1H 2016 Cash Flows according to Management view (Not IFRS presentation)**RR m illion Actual Actual Variances Comments 1H 2017 1H 2016 Units % In 1H 2017 cash and cash equivalents increased by RR 7,549 million from RR 6,752 million to Cash flow s from operating ac
Slide 9: Business Overview by division (IFRS)
Section 2 Business Overview by division (IFRS) 1 H 2017 and Q2 2017 vs 1H 2016 and Q2 2016
Slide 10: Sugar: Key indicators Q2 2017
Sugar Key indicators Actual Q2 2017 vs Actual Q2 2016 (IFRS) Comments Sugar: sales, Adjusted EBITDA and Adjusted EBITDA margin 30% Sales (RR -2,151 million, -23%): 10,000 9,342 • 16% drop in sugar sales prices; • a decrease in sugar sale volumes by 25 ths tn or 11%. 27% 8,000 EBITDA margin Adjusted
Slide 11: Sugar: Key indicators 1H 2017
Sugar Key indicators Actual 1H 2017 vs Actual 1H 2016 (IFRS) Comments Sugar: sales, Adjusted EBITDA and Adjusted EBITDA margin 17,000 40% Sales (RR -618 million, -4%): 15,219 14,601 • 20% drop in sugar sales prices; 15,000 • an increase in sugar sale volumes by 47 ths tn or 14%; • Increase in sales
Slide 12: Meat: Key indicators Q2 2017
Meat Key indicators Actual Q2 2017 vs Actual Q2 2016 (IFRS) Comments Meat: sales, Adjusted EBITDA and Adjusted EBITDA 6,000 margin 40% Sales (RR +1,062 million, +25%): 5,305 • an increase in sales volume of processed pork by 10 ths tn or 51%, that was partly offset by a decrease in sales volume of l
Slide 13: Meat: Key indicators 1H 2017
Meat Key indicators Actual 1H 2017 vs Actual 1H 2016 (IFRS) Comments Meat: sales, Adjusted EBITDA and Adjusted EBITDA 15,000 margin 60% Sales (RR +2,180 million, +28%): • an increase in sales volume of livestock pigs by 1 ths tn or 4% and in sales volume of processed pork by 12 ths tn or 30%. Overal
Slide 14: Agriculture: Key indicators Q2 2017
Agriculture Key indicators Actual Q2 2017 vs Actual Q2 2016 (IFRS) Comments Agriculture: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR +152 million, +13%): • the major positive factor is sales of 31.2 ths tn of sunflower in Q2 2017 compared to merely none 1,500 1,336 30% in Q2 2016. 1,
Slide 15: Agriculture: Key indicators 1H 2017
Agriculture Key indicators Actual 1H 2017 vs Actual 1H 2016 (IFRS) Comments Agriculture: sales, Adjusted EBITDA and Adjusted 8,000 EBITDA margin 50% Sales (RR +460 million, +10%): The major positive factors are: 36% 40% • sales of 452 ths tn of sugar beet in 1H 2017 compared to zero sales in 1H 2016
Slide 16: Oil & Fats: Key indicators Q2 2017
Oil & Fats Key indicators Actual Q2 2017 vs Actual Q2 2016 (IFRS) Comments Oil & Fats: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR -648 million, -11%: EZHK RR -419 million, -18%; SAPP RR -902 million, -23%; Far East 7,000 10% RR +166 million, +23% and Eliminations RR +507million). 5,
Slide 17: Oil & Fats Ekaterinburg: volume and prices Q2
Oil & Fats Key indicators Actual Q2 2017 vs Actual Q2 2016 (IFRS) Comments Oil & Fats Ekaterinburg: volume and prices 20 18 19 85 Sales and prices in Ekaterinburg fat plant (EZHK): 17 82.3 16 • sales volume of mayonnaise decreased by 4 ths tn (-20%) with 7% increase in price; thousand rubles per ton
Slide 18: Oil & Fats: Key indicators 1H 2017
Oil & Fats Key indicators Actual 1H 2017 vs Actual 1H 2016 (IFRS) Oil & Fats: sales, Adjusted EBITDA and Adjusted Comments EBITDA margin 10% Sales (RR -2,027 million, -17%: EZHK RR -386 million, -9%; SAPP RR -2,241 million, -31%; Far East 14,000 RR +75 million, +4% and Eliminations RR +524 million).
Slide 19: Oil & Fats Ekaterinburg: volume and prices 1H
Oil & Fats Key indicators Actual 1H 2017 vs Actual 1H 2016 (IFRS) Comments Oil & Fats Ekaterinburg: volume and prices 50 85 Sales and prices in Ekaterinburg fat plant (EZHK): • sales volume of mayonnaise decreased by 2 ths tn (-7%) with 4% increase in price; thousand rubles per ton 79.6 80 40 Lower
Slide 20: Additional information
Section 3 Additional information
Slide 21: Statement of Comprehensive income (IFRS)
Statement of Comprehensive income (IFRS) ROS AGRO PLC RR m illion Variances Description Actual 1H 2017 Actual 1H 2016 (*) Units % Sales 37,758 38,210 (452) (1) Net gain on revaluation of biological assets and (3,393) (3,351) (42) (1) agricultural produce Cost of sales (28,934) (27,078) (1,856) (7) N
Slide 22: Adjusted EBITDA 1H 2017 Breakdown by divisions
Adjusted EBITDA 1H 2017 (IFRS) Breakdown by divisions ROS AGRO PLC RR m illion 1H 2017 Sugar Meat Agriculture Oil and Fat Other Elim ination Total Sales 14,601 10,037 5,006 9,621 31 (1,540) 37,758 Net gain / (Net loss) on revaluation of biological assets and agricultural produce - (411) (1,493) - -
Slide 23: 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 / (Net loss) on revaluation of biological assets and agricultural produce - (472) (1,278) - -
Slide 24: Statement of cash flows (IFRS)
Statement of cash flows (IFRS) ROS AGRO PLC RR m illion Actual Actual Variances 1H 2017 1H 2016 Units % Cash flow s from operating activities Profit before incom e tax 107 2,105 (1,998) (95) Adjustments for non-cash and non-operating (income)/expenses, net: Depreciation and amortization 3,479 1,994
Slide 25: Statement of cash flows (IFRS) - continuance
Statement of cash flows (IFRS) - continuance ROS AGRO PLC RR m illion Actual Actual Variances 1H 2017 1H 2016 Units % Cash flow s from investing activities Purchases of property, plant and equipment (7,188) (3,616) (3,572) (99) Purchases of other intangible assets (110) (115) 5 5 Proceeds from sales
Slide 26: 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 2017 1H 2016 Units % Cash flow s from operating activities Profit before incom e tax 107 2,105 (1,998) (95) Adjustments for non-cash and non-operating (income)/expenses, n
Slide 27: 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 (*) Including in net cash 1H 2017 1H 2016 Units % flows on financial assets Cash flow s from investing activities - - related to financial Purchases of property
Slide 28: Statement of financial position (IFRS)
Statement of financial position (IFRS) ROS AGRO PLC RR m illion 31 December Variances 30 June 2017 2016 Units % ASSETS Current assets Cash and cash equivalents 14,301 6,752 7,549 112 Restricted cash 0 0.04 0 5 Short-term investments 9,463 17,230 (7,767) (45) Trade and other receivables 3,194 4,608 (
Slide 29: Statement of financial position (IFRS) - continuance
Statement of financial position (IFRS) - continuance ROS AGRO PLC RR m illion 31 December Variances 30 June 2017 2016 Units % Liabilities and EQUITY Current liabilities Short-term borrow ings 9,394 11,704 (2,310) (20) Trade and other payables 8,536 6,989 1,547 22 Current income tax payable 46 99 (54
Slide 30: Average FX rate, USD/RUR
Average FX rate, USD/RUR v7 RUSAGRD 85.00 80.00 75.00 70.00 65.00 60.00 55.00 50.00 45.00 68.00 67.00 65.00 63.00 61.00 59.00 57.00 55.00 Ruble's exchange rate for jul. 2015 - jun. 2016 ubas ‘Aug-15 Sop-15 oet-15 Nov.t5 ee-15 Jon-16 Feb-16 Mar-16 Apr-16 May-16 jun 36 eUsK/RUB —@ max —@ min —trendlin