AB Akola Group · OMXVSE:AKO1L
AB Akola — AB Linas Agro Group — Webinar (December 2020)
23 slides from AB Akola's conference presentation, Dec 9, 2020
Slide 1: Overview of activities and finance for FY 2019/20 & 2020/21 Q1
AB Linas Agro Group Overview of activities and finance for FY 2019/20 & 2020/21 Q1 1
Slide 2: Today's presenter in brief
Today‘s presenter in brief Mažvydas Šileika Finance Director & Contact for Investors With Linas Agro Group since 2020 10 years professional experience including Banking & Shipping industries Master’s degree in Shipping, Trade and Finance / Cass Business School Bachelor’s degree in Management / Unive
Slide 3: We are
We are 1991 Founded 2010 Listed 2,103 employees since international vertically integrated agribusiness and food Group 658 25.9 93.8 mEUR mEUR mEUR Consolidated Consolidated Market revenue EBITDA Capitalisation 331 18.4 2.23 ktons kha m tons Grain storage Arable land Sales volume capacity in own elev
Slide 4: Key milestones in brief
Key milestones in brief stepping in agri- innovation, development starting seed expanding fertiliser of precision farming production… operation systems expanding activity with launching grain agricultural machinery handling and storage sales, seeds and grain services storage equipment engaging in mi
Slide 5: The Group we are today in brief
The Group we are today in brief AB „Linas Agro Group“ – controlling 39 q companies* in LT, LV, EE, UA. Grain, feedstuff Agricultural Agri-machinery & and Agro inputs production Poultry agri-innovation After reporting period 30/06/2020: • UAB Dotnuva Baltic acquired a startup, 4X companies 7 X compan
Slide 6: Key segments in brief
Key segments in brief Products & services Agricultural Grain & feedstuff Food for farming production handling & merchandising products Sales of seeds, plant protection A whole cycle poultry business incl. Cultivation of cereals, oilseed rape, Trade in grain, oilseeds and feedstuffs, products, fertil
Slide 7: Financial highlights
Financial highlights ’2019/20 ’2020/21 Q1 Fiscal year of the company starts on July 1st 7
Slide 8: Strong revenues and rebounding operating profit
Strong revenues and rebounding operating profit in brief Revenue per segment Operating profit per segment mEUR mEUR 743 Food products (FP) 800 645 77 658 20 15 700 634 61 74 12 10 69 2 600 Grain & feedstuff 2 15 4 handling & 500 merchandising 6 513 (GFHM) 400 415 397 419 8 4 10 3 Agricultural 300 23
Slide 9: Firm Balance Sheet
Firm Balance Sheet in brief Debt portfolio Total assets* 160 Net Debt RMI mEUR 140 143 142 139 405mEUR in total: 120 153 Intangible 100 Fixed 100 Other 80 mEUR 223 Current assets Cash & cash equivalents 60 96 90 40 80 72 20 0 • Balance sheet mainly comprises of Current assets and S/T 2016/17 2017/18
Slide 10: Creating value to shareholders
Creating value to shareholders in brief ROA, ROE, ROCE, % 5.3 5.5 • After loss making year the ratios 5.0 rebounded closer to historical figures 4.3 4.8 • 5Y average: ROA 1.4%, ROE 3.1%, ROCE 2.8%. 2.9 • High focus of management for the 2.4 2.5 2.4 return driven ratios, specific and comparable targe
Slide 11: Generating cash flow to drive value
Generating cash flow to drive valuebrief Generated cash flow & alternatives for it’s allocation 25.90 1 Improving credit metrics -5.20 2 Investments -12.086 4.4 3 Dividends -4.209 • 12.7 mEUR of investments were performed, out of which 8.5 mEUR were financed with new loans from the banks • Financial
Slide 12: Generated returns to shareholders
Generated returns to shareholders brief Historically paid dividends and pay-out ratios The share of the company Dividends paid 35% 14 31% Ordinary shares Net profit for the year 158,940,398 30% 12 Pay-out ratio (secondary axis) 10 93.8 Market capitalisation, 25% 10 9.5 mEUR 8.4 9.83 20% 8 P/E ratio
Slide 13: Products and services for farming
Products and services for farming Certified seed Fertilizers Plant protection Since 1993 Grain storage Agricultural Spare parts and facilities and farm machinery service equipment 13
Slide 14: Key data and latest developments
Key data and latest developments • New farmers service center in Ozolnieki (LV) opened • New cooperation and representation agreements with “Innvigo”, “Mandam”, “Agrisem” & “MacDon” brands (Polish, French & Canadian producers in plant protection, agri machinery/equipment); initiated distribution of
Slide 15: Agricultural production
Agricultural production Cereals growing Rapeseed growing Sugar beet growing Since 2003 Milk Beef cattle production rearing 15
Slide 16: Key data and latest developments
Key data and latest developments • Agricultural company „Nemunas“ has been acquired during the reporting period. • Milk production in agricultural company „Labūnava“ modernisation and robotisation. • During Q1 of FY 2020/21: a) 96.5 ktons of plant production harvested (+40%*), 8.8 ktons of milk prod
Slide 17: Grain & feedstuff handling and merchandising
Grain & feedstuff handling and Grain Oilseed Feedstuff merchandising Since 1991 Ecologic grain Grain storage and Logistic services and oilseeds preparation 17
Slide 18: Key data and latest developments
Key data and latest developments • Trade activity has been affected by the COVID-19 pandemic as the countries closed their borders and value of some unsold stock has declined. • Strict quarantine in Uzbekistan and Azerbaijan at the end of the season has temporarily slowed down the production of poul
Slide 19: Food products
Full manufacturing cycle Food products Parents stock Chicken from locally laid Broiler eggs Since 2013 Poultry meat products 19
Slide 20: Key data and latest developments
Key data and latest developments • Due to the COVID-19 and the quarantine introduced in various countries, poultry industry faced a production surplus and sharp fall in the price of it‘s individual parts. Adjusting to new environment, the Group reduced trade in fresh poultry meat and started produci
Slide 21: Drivers for coming year and key developments
Drivers for coming year… … & key developments EUR million • EUR 13.8m investments are planned for after reporting FY 2020/21, allocated to: – Food 5.4 mEUR • A subsidiary company LINAS AGRO OU was founded – Agri production 5.2 mEUR expanding business in EE. – Products and Services for farming • Agre
Slide 22: Linas Agro Group is considering to acquire KG Group
Linas Agro Group is considering to acquire KG Group KG Group - one of the largest privately held Baltic food & agriculture companies. The acquisition would solidify Linas Agro Group as the indisputable market leader with increased profitability listed on privately held Key business segments Grain tr
Slide 23: Thank You
Thank You 23