Rusagro Group · RUS:RAGR
Rusagro — Ros Agro — Q2 2024 Earnings Presentation
28 slides from Rusagro's earnings presentation, Aug 5, 2024
Slide 1: Ros Agro PLC Investors Presentation 2Q 2024 and 6M 2024
AUGUST 5TH, 2024 ROS AGRO PLC INVESTORS PRESENTATION 2Q 2024 AND 6M 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) 2Q 2024 vs 2Q 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) 2Q 2024 vs 2Q 2023
SECTION 1 SUMMARY KEY INDICATORS (IFRS) 2Q 2024 VS 2Q 2023
Slide 5: Key Events 2Q 2024
KEY EVENTS 2Q 2024 5 Expansion of oil and fat capacity in Saratov Region Rusagro Group plans to modernize oil extraction plant in Atkarsk in 2024-2025, capacity to increase by 50% to 2.4 thousand tonnes of raw materials processing per day. In addition, there are plans to build a new oil extraction p
Slide 6: Highlights 2Q 2024 vs 2Q 2023
HIGHLIGHTS 2Q 2024 VS 2Q 2023 6 +20% -23% -5 pp -78% -7%* -0.05* 70.7 6.5 9% 1.7 61.6 1.13 RUB bn RUB bn adj. EBITDA RUB bn RUB bn Net Debt / Adj. Net Revenue adj. EBITDA margin Net profit Net Debt EBITDA (LTM) -50% -15% +65% -21% +205% 117 63 632 244 4.6 ths tn ths tn ths tn ths tn RUB bn Sugar Sal
Slide 7: Net Revenue, Adjusted EBITDA: 2Q 2024 vs 2Q 2023
NET REVENUE, ADJUSTED EBITDA: 7 2Q 2024 vs 2Q 2023 Net Revenue increased by RUB 11,580 million (+20%): Net revenue (IFRS) 2Q 2024 vs 2Q 2023 RUB million • Revenue of Sugar segment decreased by RUB 5,613 million (-39%) due to lower +20% sales volume of sugar; (RUB +11,580 million) • Revenue of Meat s
Slide 8: Business Overview by Division (IFRS)
SECTION 2 BUSINESS OVERVIEW BY DIVISION (IFRS) 2Q 2024 VS 2Q 2023
Slide 9: Sugar Key Indicators 2Q 2024 vs 2Q 2023 (IFRS)
SUGAR 9 KEY INDICATORS 2Q 2024 VS 2Q 2023 (IFRS) Adj. EBITDA 2Q 2023 4,704 Sales (RUB -5,613 million, -39%): • Growth of sales prices following the increase of market prices; Sales — Price factor 746 • Sales volumes reduced in 2Q 2024 due to lower carryover stocks and reserving volumes of sugar for
Slide 10: Meat Key Indicators 2Q 2024 vs 2Q 2023 (IFRS)
MEAT 10 KEY INDICATORS 2Q 2024 VS 2Q 2023 (IFRS) Adj. EBITDA 2Q 2023 287 Sales (RUB +86 million, +1%): • Increase in average sales prices for meat products and livestock; Sales — Price factor 1,432 • Decrease in production volume following pigs’ diseases in FY 2023. Sales — Volume factor (1,346) Adj
Slide 11: Agriculture Key Indicators 2Q 2024 vs 2Q 2023 (IFRS)
AGRICULTURE 11 KEY INDICATORS 2Q 2024 VS 2Q 2023 (IFRS) Adj. EBITDA 2Q 2023 1,233 Sales (RUB -1,353 million, -24%): • Decrease in soybeans sales volumes due to the differences of carryover stocks; Sales — Price factor 571 • Increase in soybeans sales prices due to higher quality of 2023 harvest. Sal
Slide 12: Oil & Fats Key Indicators 2Q 2024 vs 2Q 2023 (IFRS)
OIL & FATS* 12 KEY INDICATORS 2Q 2024 VS 2Q 2023 (IFRS) Adj. EBITDA 2Q 2023 2,030 Oil & Fats Sales (RUB +18,953 million, +68%): • Increase in sales volumes due to consolidation of NMGK Group; Sales — Price factor 117 • Increase in sales volumes of bulk oil and meal due to increased processing capaci
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 54.7 54.7 55.3 56.5 14.6 52.1 53.2 14.0 14.0 14.0 13.6 13.0 12.9 12.9 12.3 12.8 12.4 11.8 55.5 57.7 52.0 54.8 53.6 53.8 52.9 52.5 51.8 2023 12.9 2023 47.8 48.8 11.9 11.8 11
Slide 15: Overview of Debt Profile and Cash Flows
SECTION 3 OVERVIEW OF DEBT PROFILE AND CASH FLOWS
Slide 16: Debt Profile as of 30 June 2024
DEBT PROFILE AS OF 30 JUNE 2024 16 Debt position and liquidity management Gross debt by repayment maturity RUB million RUB million 31 December Variance 30 June 2024 2 3-5 More than 2023 Units % 1 year years years 5 years Gross debt 111,043 127,533 (16,490) (13) Short-term borrowings 45,510 68,035 (2
Slide 17: Cash Flows: 6M 2024 vs 6M 2023
CASH FLOWS: 6M 2024 VS 6M 2023 17 Cash Flows according to Management view (not IFRS presentation)*, RUB million 6M 2024 6M 2023 Adj. EBITDA 13,802 15,606 Adjustments to EBITDA 919 72 Inventories and bio assets 4,415 (365) AR and AP (574) 18,087 Other 982 (212) Income tax paid (2,653) (611) Net cash
Slide 18: Additional Information
SECTION 4 ADDITIONAL INFORMATION
Slide 19: Highlights 6M 2024 vs 6M 2023
HIGHLIGHTS 6M 2024 VS 6M 2023 19 +30% -12% -5 pp -74% -7%* -0,05* 139.0 13.8 10% 3.5 61.6 1.13 RUB bn RUB bn adj. EBITDA RUB bn RUB bn Net Debt/ Adj. Net Revenue adj. EBITDA margin Net Debt EBITDA (LTM) Net profit -20% -17% +78% -53% +110% 304 121 1,272 481 10.9 ths tn ths tn ths tn ths tn RUB bn Oi
Slide 20: Net Revenue, Adjusted EBITDA: 6M 2024 vs 6M 2023
NET REVENUE, ADJUSTED EBITDA: 20 6M 2024 VS 6M 2023 Net revenue increased by RUB 32,494 million (+30%): Net revenue (IFRS) 6M 2024 vs 6M 2023 RUB million • Revenue of Sugar segment decreased by RUB 2,595 million (-11%) mainly due to +30% lower sales volume of sugar; (RUB 32,494 million) • Revenue of
Slide 21: Consolidated Statement of Comprehensive Income (IFRS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS) 21 FOR THE SIX MONTHS ENDED 30 JUNE 2024 RUB million Varianсes Varianсes Description 6M 2024 6M 2023 2Q 2024 2Q 2023 Units % Units % Sales 139,043 106,549 32,494 30 70,734 59,154 11,580 20 Net gain / (loss) on revaluation of biological assets and
Slide 22: Segment Information for Six Months Ended 30 June 2024
SEGMENT INFORMATION 22 FOR THE SIX MONTHS ENDED 30 JUNE 2024 RUB million Sugar Meat Agriculture Oil and Fat Other Elimination Total Sales 21,378 22,615 8,616 90,107 1,205 (4,879) 139,043 Net gain / (loss) on revaluation of biological assets and - 17 2,964 - - (3,317) (336) agricultural produce Cost
Slide 23: Segment Information for Six Months Ended 30 June 2023
SEGMENT INFORMATION 23 FOR THE SIX MONTHS ENDED 30 JUNE 2023 RUB million Sugar Meat Agriculture Oil and Fat Other Elimination Total Sales 23 974 22 649 11 559 51 399 1 005 (4 036) 106 549 Net gain/ (loss) on revaluation of biological assets and - 2 272 (2 092) - - (1 146) (966) agricultural produce
Slide 24: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF СASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2024* 24 RUB million Variance 6M 2024 6M 2023 Units % Cash flows from operating activities Profit before income tax 5,212 16,448 (11,236) (68) Adjustments for non-cash and non-operating (income)/expenses, net: Depreciation and amo
Slide 25: Consolidated Statement of Cash Flows - Continuance
CONSOLIDATED STATEMENT OF СASH FLOWS 25 FOR THE SIX MONTHS ENDED 30 JUNE 2024* - CONTINUANCE RUB million Variance 6M 2024 6M 2023 Units % Cash flows from investing activities Purchases of property, plant and equipment (10,795) (5,058) (5,736) (113) Purchases of other intangible assets (283) (451) 16
Slide 26: Consolidated Statement of Financial Position (IFRS)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) 26 AS AT 30 JUNE 2024 RUB million 30 June 31 December Variances 2024 2023 Units % ASSETS 399,275 410,966 (11,691) (3) Current assets Cash and cash equivalents 7,476 25,937 (18,460) (71) Short-term investments 9,460 2,289 7,171 313 Trade and other r
Slide 27: Consolidated Statement of Financial Position - Continuance
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) 27 AS AT 30 JUNE 2024 - CONTINUANCE RUB million 30 June 31 December Variances 2024 2023 Units % Liabilities and EQUITY 399,275 410,966 (11,691) (3) Current liabilities Short-term borrowings 45,510 68,035 (22,525) (33) Lease liabilities 1,090 1,098
Slide 28: Net Finance Income/(Expense)
NET FINANCE INCOME/ (EXPENSE) 28 Comments Net finance income/ (expense) RUB million Net finance income in 6M 2023 in the amount of Variance Variance RUB 7,439 million decreased to net finance loss 6M 2024 6M 2023 2Q 2024 2Q 2023 Units % Units % in amount of RUB -423 million in 6M 2024 (RUB Net inter