Kernel Holding S.a. · GPW:KER
Kernel — Q1 FY2021 Earnings Presentation
28 slides from Kernel's earnings presentation, Nov 27, 2020
Slide 1: Kernel Holding S.A. Q1 FY2021 results and company presentation
Kernel Holding S.A. Q1 FY2021 results and company presentation November 2020
Slide 2: Disclaimer
Disclaimer The information in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither th
Slide 3: Content
Content 1. Q1 FY2021 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 4: Q1 FY2021 highlights
Q1 FY2021 results and results and Balanced outlook outlook Kernel today growth strategy Financials 1.1 Q1 FY2021 highlights ◼ Revenue 11% y-o-y to US$ 940m driven by higher sunflower oil sales prices. US$ million except EPS Q1 FY2020 Q1 FY2021 y-o-y Income statement highlights Revenue 850 940 11%
Slide 5: Segment results
Q1 FY2021 results and results and Balanced outlook outlook Kernel today growth strategy Financials 1.2 Segment results Segment volumes, m tons EBITDA margin EBITDA, US$ m 100 106 3.4 3.5 83 Oilseed 3.0 3.1 3.2 67 152 160 Processing 54 100 109 1.4 1.6 1.5 1.5 77 1.2 FY2017 FY2018 FY2019 FY2020 LTM FY
Slide 6: Segments results and harvest update
Q1 FY2021 results and results and Balanced outlook outlook Kernel today growth strategy Financials 1.3 Segments results and harvest update Segments results Oilseed Processing segment Revenue, US$ m EBITDA, US$ m Volume, k t 1 EBITDA margin, US$ / t2 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 ◼ EBITDA margin 41% y-o-y
Slide 7: IFRS 16 impact
Q1 FY2021 results and results and Balanced outlook outlook Kernel today growth strategy Financials 1.4 IFRS 16 impact ◼ Starting from Q1 FY2020, Kernel introduced IFRS 16 Leases with application of retrospective approach and did not restate comparatives, as permitted under the transitional provision
Slide 8: Outlook for FY2021
Q1 FY2021 results and results and Balanced outlook outlook Kernel today growth strategy Financials 1.5 Outlook for FY2021 ◼ Significant risks to end up FY2021 with the crushing margin materially below US$ 100 EBITDA per ton of oil sold observed in FY2020: – Sunflower seed harvest in Ukraine in FY202
Slide 9: Content
Content 1. Q1 FY2021 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 10: Kernel today
Q1 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.1 Kernel today Oilseed Processing segment Key financials FY2017 FY2018 FY2019 FY2020 LTM EBITDA 1, US$ million ◼ #1 sunflower oil producer (7% of global production) and Revenue US$ m 2,169 2,403 3,960 4,107
Slide 11: What we do
Q1 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.2 What we do 1 Own farming: Kernel 6 Grain export: Kernel exported 8.4 million tons of grains and operates 514 thousand ha of oilseeds from Ukraine, entering into forward contracts within the leasehold farm
Slide 12: Efficient and well-invested asset base
Q1 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.3 Efficient and well-invested asset base Sunflower seed crushing capacity, thousand tons per year Poltava Grain transshipment capacity, thousand tons per year 475 Vovchansk 356 Starokostiantyniv Prykolotne
Slide 13: Kernel's key milestones
Q1 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.4 Kernel’s key milestones Asset-light Acquisition of IPO & listing on Extending oilseed • Entering the Russian market by Exit of highly Acquisition of • Active • Divestment an export platform sunflower oil
Slide 14: Oilseed Processing segment
Q1 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.5 Oilseed Processing segment LTM EBITDA Segment performance Profitability drivers and FY2021 outlook Segment volumes Sunflower oil price million tons ◼ Record oilseed processing volumes: 1 US$ per ton of un
Slide 15: Infrastructure and Trading segment
Q1 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.6 Infrastructure and Trading segment LTM EBITDA Segment performance Profitability drivers and FY2021 outlook Segments volumes Grain supply in Ukraine million tons ◼ Record grain export volumes from Ukraine
Slide 16: Farming segment
Q1 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.7 Farming segment LTM EBITDA Segment performance Profitability drivers and FY2021 outlook Kernel’s key crop production ◼ 501k ha harvested in FY2021 1 Ukraine corn and wheat prices, US$ per ton, FOB-Black S
Slide 17: Credit highlights
Q1 FY2021 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.8 Credit highlights Credit portfolio as of 30 September 2020, US$ m Kernel Eurobonds mid-YTM, % 2022 8.75% bond 2024 6.5% bond 2027 6.75% bond Amount Undrawn facilities / 17% outstanding Limit Interest rate
Slide 18: Content
Content 1. Q1 FY2021 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 19: Kernel's mid-term strategy
Q1 FY2021 Balanced results and growth Balanced outlook Kernel today strategy growth strategy Financials 3.1 Kernel’s mid-term strategy We aim to profitably double export volumes by FY2021, providing comprehensive solutions to our clients (customers and suppliers), with balanced development of our bu
Slide 20: Strategy 2021 serves as a solid basis for future growth
Q1 FY2021 Balanced results and growth Balanced outlook Kernel today strategy growth strategy Financials 3.2 Strategy 2021 serves as a solid basis for future growth across all business segments Strategy 2021 investments pipeline overview: Status Segment (as of November US$ million FY2017 FY2018 FY201
Slide 21: Content
Content 1. Q1 FY2021 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 22: Consolidated statement of profit or loss
Q1 FY2021 results and Balanced outlook Kernel today growth strategy Financials Financials 4.1 Consolidated statement of profit or loss US$ million, except ratios and EPS FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 LTM Revenue 215 350 663 1,047 1,020 1,899 2,072 2,797 2
Slide 23: Balance sheet
Q1 FY2021 results and Balanced outlook Kernel today growth strategy Financials Financials 4.2 Balance sheet Balance sheet highlights 30 Sep US$ million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 2020 Cash & cash equivalents 6 25 89 129 59 116 83 79 65 129 60 143 132 7
Slide 24: Cash flow statement
Q1 FY2021 results and Balanced outlook Kernel today growth strategy Financials Financials 4.3 Cash flow statement US$ million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 LTM EBITDA 17 46 123 190 190 310 319 288 223 397 346 319 223 346 443 626 Finance cost paid (9) (18)
Slide 25: IR contact and investor calendar
IR contact and investor calendar Michael Iavorskyi Investor Relations Manager [email protected] Tel.: +38 (044) 461 88 01, ex. 7275 3 Tarasa Shevchenka Lane, Kyiv Ukraine, 01001 Investor calendar Annual general shareholders’ meeting 10 December 2020 Q2 FY2021 Operations Update 21 January 2021 H1 FY2021 F
Slide 26: Content
Content 1. Q1 FY2021 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 27: A1. Markets and business environment
A1. Markets and business environment Oilseed Processing Infrastructure and Trading Farming Global production of vegetable oils Global production and export of Global grain exports Top grain exporting countries Grain yields in MY2019/20 million tons sunflower oil million tons million tons t / ha mill
Slide 28: A2. Kernel sustainability approach
A2. Kernel sustainability approach We aim to unlock the Ukrainian food production potential to feed the growing world population in a sustainable manner Key non-financial KPIs ◼ Proper set of internal policies and procedures to drive sustainable development: Code of Environment FY16 FY17 FY18 FY19 F