Rusagro Group · RUS:RAGR
Rusagro — Ros Agro — Investor Presentation (June 2016)
23 slides from Rusagro's investor presentation, June 2016
Slide 1: ROS AGRO Investor presentation
ROS AGRO Investor presentation June 2016
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by ROS AGRO PLC (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows the oral pre
Slide 3: Ros Agro at a glance
Ros Agro at a glance Ros Agro – a leading vertically integrated diversified agriculture holding with exposure to highly attractive market segments in Russia and CIS Business highlights Overview of Ros Agro segments3 • #2 sugar producer in Russia with 19% market share1 • 9 sugar refineries 32,9 • #2
Slide 4: Vertically integrated and diversified with scale benefits
Vertically integrated and diversified with scale benefits Efficient and stable The company is well-positioned to drive industry consolidation given its scalable business model cluster-oriented Tambov and Voronezh regions business model 3 sugar refineries Yekaterinburg benefiting from scale, 7 pi
Slide 5: Experienced management with a proven track record
Experienced management with a proven track record Experienced management team widely recognised in the industry with solid and proven track record and a highly committed controlling shareholder Founder and the controlling shareholder CEO and a shareholder Senior management Vadim Moshkovich Maxim Bas
Slide 6: Strong financial performance
Strong financial performance Strong Top-Line Growth (RUB bn) Key Highlights Growth During 2013-15 the Company achieved strong top-line growth of ca. 41% per annum with its 62% 23% sales exceeding RUB 72bn in 2015 72.4 The growth was primarily attributable to developments in the meat and oil & fa
Slide 7: Strong Russian agri sector fundamentals: government regulation
Strong Russian agri sector fundamentals: government regulation The agri sector enjoys strong government support aimed at protecting and developing domestic producers Government support breakdown (2015) Government support of agricultural sector Food Security doctrine Ministry of Agriculture targets
Slide 8: Investment highlights
Investment highlights 8
Slide 9: Key Elements of Ros Agro's Development Strategy
Key Elements of Ros Agro’s Development Strategy Entry into new businesses • Development of new food business: Greenhouse project in Tambov region Development of a new geographical clusters • Backed by strong government support, taking advantage of the untapped resources of the Russian Far East to co
Slide 10: Growth in existing business
Growth in existing business Ros Agro continues to monitor new areas of business for the ongoing business expansion Expansion of land bank Improve crop mix in favor of the crops with higher sales potential Land bank: • Further expansion of land bank in • Corn and soybean are expected to be the key +4
Slide 11: Strong brand portfolio across products and price points
Strong brand portfolio across products and price points Ongoing development of the existing and new brands to further reach out to final customers Oil and fats brands Top-5 in Russia with 5% market share1 Top-3 in Russia with 12% market share3 Nation-wide focused brand increasing Top-1 in Ur
Slide 12: Development of new food clusters: Far East project
Development of new food clusters: Far East project Project success is expected to be driven by lack of sufficient domestic production in Primorsky Krai and high demand from Asian markets Start of the Project phase Further Commercial 1st phase full c. 27kha of construction of First pig
Slide 13: Development of new food clusters: Greenhouse project
Development of new food clusters: Greenhouse project Hi-tech greenhouse located in Tambov region (town of Michurinsk, Central Russia) Project concept Project catchment area Technologically advanced greenhouse system with supplementary lightening, automatic climate control and computer controll
Slide 14: Financial overview
Financial overview 14
Slide 15: The Group's Financial Performance
The Group’s Financial Performance Oil & Recent Financial Performance (1Q16 vs. 1Q15) Sugar Meat Agri Fats Other Net Revenue increased by RUB 3,6bn (+26%): 1Q16 vs. 1Q15 • Sugar sales increased by RUB 1,1bn (+22%) thanks to sales volume and price growth. • Meat sales decreased by RUB 337m (-9%) mainl
Slide 16: Sugar
Sugar Financial Highlights (RUB bn) Operating Highlights Production (ths. tons) Sales volume and price 32,9 39% 39% 43 44 34% 40 22,5 765 752 784 611 21% 28 87 111 125 11,1 0 4,8 4,8 5,9 2014 2015 1Q 2015 1Q 2016 2014 2015 1Q 2015 1Q 2016 1,9 2,3 Sales volume (ths. tons) Under tolling agreements Fro
Slide 17: Meat (Pork)
Meat (Pork) Financial Highlights (RUB bn) Operating Highlights Production (ths. tons) Sales volume and price 50% 45% 95,7 99,4 94,9 42% 565 579 82,4 17,8 18,1 359 246 180 172 187 195 135 41 35 73 8,8 15% 7,7 4,0 2012 2013 2014 2015 2014 2015 1Q 2015 1Q 2016 3,6 1,8 Offal 0,6 Group pork production La
Slide 18: Agriculture
Agriculture Financial Highlights (RUB bn) Operating Highlights Yields Share in Prices (RUB/kg) 47% 47% 46% Ros Agro Russia 2012-15 Ros Agro harvest* 2014 2015 1Q15 1Q16 Average 14,2 Wheat 3,6 2,5 36% Wheat 6,4 8,7 9,0 8,9 10,7 Barley 2,9 2,3 32% Barley 4,9 8,6 9,9 9,0 41% 6,6 4,4 Sunflower 2,3 1,4 1
Slide 19: Oil and Fats
Oil and Fats Financial Highlights (RUB bn) Sale Volumes and Prices Sales volume (ths. tons) Prices (RUB/kg) 18% 2014 2015 1Q15 1Q16 2014 2015 1Q15 1Q16 13% 17,3 Margarine 47 43 11 10 Margarine 55 71 69 69 14,9 10% Mayonnaise 58 66 12 14 Mayonnaise 59 73 69 76 5,74% Raw oil (ext.) 247 171 50 48 Raw o
Slide 20: Debt Overview
Debt Overview As of 31 Mar 2015 the total debt was ca. RUB 27bn (1.3x total debt/ Overview of Q1 2016 Net Debt Evolution, RUB bn EBITDA) • Gross debt decreased by RUB 3.1bn (down 6%) to RUB 46.8bn Net debt was RUB 2.0bn (0.1x net ‒ 68% of total gross debt is subsidized 15,1 14,6 debt/ EBITDA) • Net
Slide 21: ROS AGRO PLC US$250 Million Follow-On Offering
ROS AGRO PLC US$250 Million Follow-On Offering Transaction Highlights Offering Summary ■ The offering is consistent with ROS AGRO’s strategy and provides the Company with Issuer: ROS AGRO PLC greater financial flexibility in order to further support its growth including for funding of its Incorpor
Slide 22: Rusagro GDR Trading Snapshot
Rusagro GDR Trading Snapshot Trading Stats Relative Performance Since IPO(2) Relative Performance Since 2015(2) Current GDR Price, US$ 13.85 18 15 18 Nov-15 Apr-16 15 Historical GDR Prices: 8-apr-11 28-apr-16 Acquisition of SPO 17 US$375m IPO US$250m SPO 17 52w High 14 Razgulay 's debt and 14 18.7 (
Slide 23: Recap
Recap Leading Russian diversified food producer with vertically integrated operations Large, fast-growing sector with strong government support Impressive financial track record and strong balance sheet Successful track record of executing greenfield projects and acquisitions Experienced management