Rusagro Group · RUS:RAGR
Rusagro — Ros Agro — Q3 2018 Earnings Presentation
26 slides from Rusagro's earnings presentation, Nov 12, 2018
Slide 1: Investor Presentation 9M 2018 and Q3 2018
ROS AGRO PLC Investor Presentation 9M2018 and Q3 2018 12 November 2018
Slide 2: Table of Contents
Table of Contents 1 Summary Key Indicators (IFRS) 3 2 Business Overview by division (IFRS) 11 3 Additional information 20 2
Slide 3: Section 1: Summary Key Indicators (IFRS)
Section 1 Summary Key Indicators (IFRS) 9M 2018 and Q3 2018 vs 9M 2017 and Q3 2017
Slide 4: Key events of Q3 2018
Key events of Q3 2018 M&A deals KapitalAgro acquisition (Meat Business) 3 Land acquisition in Tambov 1 Rusagro Group invested RR 1.8 billion in acquisition of CJSC Rusagro Group purchased of 100% stake in OOO Vozrozhdenie, KapitalAgro and LLC TD KapitalAgro. Net debt of acquired companies which cont
Slide 5: Net revenue, Adjusted EBITDA Q3 2018
Net revenue, Adjusted EBITDA: Actual Q3 2018 vs Actual Q3 2017 Net revenue (IFRS) Actual Q3 2018 vs Actual Q3 2017 Comments Net Revenue increased by RR 2,307 million (+14%): 25,000 • Sugar sales increased by RR 672 million (+11%) as a result of a decrease in sales prices of 762 42 26 19,378 sugar an
Slide 6: Net revenue, Adjusted EBITDA 9M 2018
Net revenue, Adjusted EBITDA: Actual 9M 2018 vs Actual 9M 2017 Net revenue (IFRS) Actual 9M 2018 vs Actual 9M 2017 70,000 Comments 60,000 54,829 (3,259) (1,032) 184 450 1,021 52,192 Net Revenue decreased by RR 2,636 million (-5%): 50,000 • Sugar sales decreased by RR 3,259 million (-5%) as a result
Slide 7: Statement of Comprehensive Income (IFRS)
Statement of Comprehensive income (IFRS) ROS AGRO PLC Varianсes Description Actual 9M 2018 Actual 9M 2017 Units % Sales 52,192 54,829 (2,636) (5) Net gain/ (loss) on revaluation of biological assets and 4,181 (2,555) 6,736 264 agricultural produce Cost of sales (37,419) (41,494) 4,075 10 Net gain/ (
Slide 8: Debt profile (as of 30 September 2018)
Debt profile (as of 30 September 2018) Comments Debt position and liquidity management • Gross debt increased by RR 4,771 million (+10%) up to RR 51,422 million Variance • Net debt increased by RR 8,498 million (129%) to RR 15,102 million in RR million 30 September 2018 31 December 2017 Units % • Ma
Slide 9: Statement of financial position: key changes
Statement of financial position: Key changes 30 September 2018 vs 31 December 2017 Assets as of 30 September 2018 vs 31 December 2017 Comments 180,000 ASSETS 175,000 7,525 (1,933) 88 671 172,316 • PPE & LT biological assets* increased by RR 9,860 million (RR +8,957 million in Meat, RR +595 million i
Slide 10: Cash Flows: Actual 9M 2018 vs 9M 2017
Cash Flows: Actual 9M 2018 vs Actual 9M 2017 Cash Flows according to Management view (Not IFRS presentation)* RR million Actual Actual Variances Comments 9M 2018 9M 2017 Units % Cash flows from operating activities In 9M 2018 cash and cash equivalents decreased by RR -15,430 million from RR 22,658 P
Slide 11: Section 2: Business Overview by division (IFRS)
Section 2 Business Overview by division (IFRS) 9M 2018 and Q3 2018 vs 9M 2017 and Q3 2017
Slide 12: Meat: Key indicators Q3 2018
Meat Key indicators Actual Q3 2018 vs Actual Q3 2017 (IFRS) Comments Sales (RR +804 million, +16% : Meat: sales, Adjusted EBITDA and Adjusted EBITDA margin 38% • a decrease in sales volume of livestock pigs by 6 ths tn or 55% that was partly compensated by an 40% increase in sales volume of processe
Slide 13: Meat: Key indicators 9M 2018
Meat Key indicators Actual 9M 2018 vs Actual 9M 2017 (IFRS) Comments Meat: sales, Adjusted EBITDA and Adjusted EBITDA 20,000 margin 60% Sales (RR+184 million, +1%): • a decrease in sales volume of livestock pigs by 27 ths tn or 59 %, that was partly compensated by an increase in sales volume of proc
Slide 14: Sugar: Key indicators Q3 2018
Sugar Key indicators Actual Q3 2018 vs Actual Q3 2017 (IFRS) Comments Sugar: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales increased (RR +672 million, +11%): 10,000 • Sugar sales revenue increased by RR 667 million as sales volume of sugar increased by 22% despite the fact that sales price
Slide 15: Sugar: Key indicators 9M 2018
Sugar Key indicators Actual 9M 2018 vs Actual 9M 2017 (IFRS) Sugar: sales, Adjusted EBITDA and Adjusted EBITDA Comments margin 20,993 40% Sales decreased (RR -3,259 million, -16%): 20,000 • Sugar sales revenue decreased by RR 2,962 million due to sales price decreased by 13% and 17,734 sales volume
Slide 16: Agriculture: Key indicators Q3 2018
Agriculture Key indicators Actual Q3 2018 vs Actual Q3 2017 (IFRS) Comments Agriculture: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR +762 million, +25%): 3,816 45% • Sales increased thanks to rise in sales price of all crops in Q3 2018 vs 2017. 3,500 3,054 30% Adjusted EBITDA (RR +76
Slide 17: Agriculture: Key indicators 9M 2018
Agriculture Key indicators Actual 9M 2018 vs Actual 9M 2017 (IFRS) Comments Agriculture: sales, Adjusted EBITDA and Adjusted EBITDA margin 50% Sales (RR -1,032 million, -13%): 8,060 8,000 40% • the major positive factors are a significant increase in sales volume of barley and higher sales 7,028 pri
Slide 18: Oil & Fats: Key indicators Q3 2018
Oil & Fats Key indicators Actual Q3 2018 vs Actual Q3 2017 (IFRS) Oil & Fats: sales, Adjusted EBITDA and Adjusted EBITDA margin Comments 6,000 Sales (RR +42 million, +6%: EZHK RR +1,119 million, +59%; SAPP RR +78 million, +3%; Far East 15% RR -129 million, -22% and Eliminations RR -1,025 million). 1
Slide 19: Oil & Fats: Key indicators 9M 2018
Oil & Fats Key indicators Actual 9M 2018 vs Actual 9M 2017 (IFRS) Oil & Fats: sales, Adjusted EBITDA and Adjusted Comments EBITDA margin 15% Sales (RR +450 million, +3%: EZHK RR +996 million, +17%; SAPP RR +378 million, +5%; Far East 12% RR +153 million, +6% and Eliminations RR -1,077 million). 18,0
Slide 20: Section 3: Additional information
Section 3 Additional information
Slide 21: Adjusted EBITDA 9M 2018 Breakdown by divisions
Adjusted EBITDA 9M 2018 (IFRS) Breakdown by divisions ROS AGRO PLC 9M 2018 Sugar Meat Agriculture Oil and Fat Other Elimination Total Sales 17,734 15,375 7,028 14,667 825 (3,436) 52,192 Net gain / (loss) on revaluation of biological assets and agricultural produce - (53) 4,236 - - (2) 4,181 Cost of
Slide 22: Adjusted EBITDA 9M 2017 Breakdown by divisions
Adjusted EBITDA 9M 2017 (IFRS) Breakdown by divisions ROS AGRO PLC 9M 2017 Sugar Meat Agriculture Oil and Fat Other Elimination Total Sales 14,601 10,037 5,006 9,621 31 (1,540) 37,758 Net gain/ (loss) on revaluation of biological assets and agricultural produce - (411) (1,493) - - (1,489) (3,393) Co
Slide 23: Statement of cash flows according to Management view
Statement of cash flows according to Management view (Not IFRS presentation) ROS AGRO PLC RR million Actual Actual Variances 9M 2018 9M 2017 Units % Cash flows from ope rating activ itie s Profit be fore income tax 9,074 3,067 6,006 196 Adjustments for non-cash and non-operating (income)/expenses, n
Slide 24: Statement of cash flows (continuance)
Statement of cash flows according to Management view (Not IFRS presentation) – continuance ROS AGRO PLC (*) Including in net cash flows on financial assets Actual Actual Variances related to financial activities. 9M 2018 9M 2017 Units % Cash flows from investing activities - - Purchases of property,
Slide 25: Statement of financial position (IFRS)
Statement of financial position (IFRS) ROS AGRO PLC RR million 30 September 31 December Variances 2018 2017 Units % ASSETS Current assets Cash and cash equivalents 7,229 4,860 2,368 49 Restricted cash 0.05 0.04 0 12 Short-term investments 14,284 18,458 (4,173) (23) Trade and other receivables 1,305
Slide 26: Statement of financial position (IFRS) - continuance
Statement of financial position (IFRS) - continuance ROS AGRO PLC RR million 30 September 31 December Variances 2018 2017 Units % Liabilities and EQUITY Current liabilities Short-term borrowings 8,000 8,864 (863) (10) Trade and other payables 11,687 6,773 4,914 73 Current income tax payable 75 64 11