Astarta Holding PLC · GPW:AST
Astarta — Non-Deal Roadshow (July 2009)
24 slides from Astarta's roadshow presentation, July 2009
Slide 1: ASTARTA Holding N.V. – Leading in agricultural & sugar business
ASTARTA Holding N. V. Leading in agricultural & sugar business July, 2009
Slide 2: 16 years of growth and development
16 years of growth and development 1993 – set-up of the company 1999 – control stake of Yareskivsky Sugar plant (Poltava region) acquired 2003 – Kobelyatsky Sugar Plant (Poltava region) and Zhdanivsky Sugar Plant (Vinnitsa region) acquired 2004 – Veselopodilsky Sugar Plant (Poltava region) acquired
Slide 3: Key production assets
Key production assets 9 Area of land under long-term lease grew to over 166 thousand hectares, more than 70% “black earth” soils 9 After acquisition of the Narkevychi mill in 2008, and modernization of other sugar plants, daily processing capacity increased to above 20 thousand tones of beet per day
Slide 4: ASTARTA competitive advantages in agriculture
ASTARTA competitive advantages in agriculture 9High quality land 9Optimal crop rotation 9Opportune geographical positioning 9Modern agri-technologies & machinery 9Low cost of large scale farming 9Motivated & experienced personnel 9Implementation of ISO standards 9Potential for yields improvement 4
Slide 5: Crop rotation & agri-operations
Crop rotation & agri-operations 145 thousand hectares in 2008 159 thousand hectares in 2009 (rounded, thousand hectares) (rounded, thousand hectares) Fallow land Other Fallow land O ther 8 4 7 5 Sunflower Sunflower 12 Sugar Beet 11 Sugar Beet Corn 35 Corn 30 14 10 Soy Soy 14 14 Forage Crops 16 Wheat
Slide 6: Efficiency is our key advantage
Efficiency is our key advantage Grain crops and oilseeds production Average crop yields in 2007-2008 at ASTARTA (thousand tons) farms and Ukraine, tons per ha 400 8 7 6% 7 .4 300 4 6 A GR 6 .4 C 5 200 5 .2 4 4 ,7 3 3,7 3 .9 100 3 .4 3 ,0 2 2 .4 0 1 2003 2004 2005 2006 2007 2008 Wheat Barley Corn AST
Slide 7: Key production results in sugar sector
Key production results in sugar sector Sugar production, thousand tons 1 800 1 724 1 500 84% 71% 1 200 thousand tons 1 241 1 203 900 42% 600 684 670 31% 300 17% 79, 2 87, 5 160,6 155,5 235,6 0 2004 2005 2006 2007 2008 Sugar beet processed Sugar produced Share of sugar beet grown in-house Sugar produ
Slide 8: ASTARTA sugar sales
ASTARTA sugar sales Major consumers by sectors : Sugar sales, clients shares, 2008 9Confectioneries 9Beverage producers 9Dairy producers 9Pharmaceuticals 9Tobacco producer 2007 2008 8
Slide 9: Ukrainian sugar production by producers' shares
Ukrainian sugar production by producers’ shares Year 2007 Year 2008 Uk rros Astarta 9 ,4% 15% Astarta 8 ,4% Uk rainian F ood Uk rros Other 1 2 ,7% 8% Other 4 7 ,7% 5 1 ,3% Uk rprom- invest 7 ,3% Uk rprom- invest Evro-service 8 ,6% 6 ,0% Dakor Rise-Tsukor Rise-Tsukor 5 ,9% 6 ,4% 3 ,7% M riya Dakor 4%
Slide 10: ASTARTA's pricing power in sugar sector
ASTARTA’s pricing power in sugar sector Average prices for sugar in 2007-2009, UAH per ton, VAT excl. 10
Slide 11: ASTARTA crops sales & markets
ASTARTA crops sales & markets Average Ukrainian prices for grains Average Ukrainian prices for oilseeds in in 2007-2009, UAH per ton, VAT excl. 2007-2009, UAH per ton, VAT excl. The breakdown of crops sales by clients in 2008, value 9 High prices in the first half of 2008; then their decrease follow
Slide 12: ASTARTA cattle farming business
ASTARTA cattle farming business Cattle farming (thousand heads, tons of milk) 25 000 40 18.2 33,2 35 20 000 28,1 30 25 15 000 20,6 19,8 15.5 14.7 20 10 000 10.9 15 8.0 10 5 000 6.4 4.9 4.5 5 0 0 2005 2006 2007 2008 H eads of c attle H eads of c ows Milk produc tion 12
Slide 13: Ukrainian cattle farming
Ukrainian cattle farming Average prices for raw milk in Ukraine continue their growth on the back of decreasing herd and shrinking milk supply. 13
Slide 14: ASTARTA consolidated production results in 2007/2008
ASTARTA consolidated production results in 2007/2008 2007 2008 Production Production 2008/2007 Season, Season, % change (ths. tons) (ths. tons) Sugar 155.5 235.6 +51.5 Molasses 50.1 66.2 +32.2 Sugar beet 947.9 1562.2 +66.9 (gross) 201 393.3 +96.6 Grain and oilseed Milk 28.1 33.2 +18.1 14
Slide 15: Export sales in 2008
Export sales in 2008 Export Sales in 2008 Product Description Share of export in EUR, thousands total product sales, % Molasses 253 5.7% Grains and oilseeds 7,436 24.7% Beet pulp 1,939 81.5% Other 302 7.5% Total / share of all exports in total sales 9,930 8.0% 9 Total export sales in 2008 grew y-o-y
Slide 16: Breakdown of revenues
Breakdown of revenues 9Revenues grew by 41% y-o-y to EUR 123.4 mln. 9Breakdown of revenues has insignificantly changed compared to 2007 16
Slide 17: Key Financials
Key Financials (thousands EUR) 2008 2007 2006 2005 Revenues 123,382 87,747 68,051 51,783 Cost of revenues (88,735) (63,145) (53,984) (36,403) Gross profit 34,647 24,602 14,067 15,380 Gross margin 28% 28% 21% 30% EBITDA 30,893 30,820 10,272 11,916 EBITDA margin 25% 35% 17% 24% FX losses (33,187) (204
Slide 18: Operational Highlights 1Q2009
Operational Highlights 1Q2009 • Boosted sales of crops and sugar on the back of 30% - 50% prices recovery on major markets: 9Sugar sales increased by 10% y-o-y 9Crops sales increased by 39% y-o-y • Increase of export sales of crops and initiation of sugar exports • Grain exports amounted to about 38
Slide 19: Key Financials 1Q2009
Key Financials 1Q2009 (thousands EUR) 1Q 2009 1Q 2008 Revenues 21,618 19,923 Gross profit 983 5,053 Gross margin, % 4.5 25.4 Profit from operations 1,693 6,708 Profit before tax 271 5,040 EBITDA 3,813 8,572 EBITDA margin, % 17.6 43 Net profit 891 5,087 Net margin, % 4.1 25.1 Margins fell in 1Q2009 s
Slide 20: Outlook for 2009: management priorities
Outlook for 2009: management priorities Organization & management 9to accomplish a transformation of the organizational structure of the Group, by consolidating agri- companies and sugar plants into five integrated regional business units geographically concentrated around sugar plants 9to continue
Slide 21: Outlook for 2009: management priorities
Outlook for 2009: management priorities Financial & investment policy 9to continue restructuring of the Group’s loan portfolio by increasing the share of long-term loans and lowering accordingly the share of short-term debt 9to complete and launch on time the capacities financed from the past invest
Slide 22: Outlook for 2009: markets prospective
Outlook for 2009: markets prospective Futures for wheat as of June, 2009, EXW, US$/t Futures for corn as of June, 2009, EXW, US$/t 300 250 225,7 227,1 239,2 248,4 254,9 258,8 222,5 222,9 228,9 206,9 250 200 200 197,3 202,2 199,7 216 220 183,5 183,7 211,9 223,7 150 198,5 150 100 100 50 50 0 0 Jul-09
Slide 23: Contacts
Contacts: Viktor Ivanchyk, CEO + 380 44 585 9415 Petro Rybin, CFO & COO + 380 44 585 9417 [email protected] [email protected] To learn more visit www.astartakiev.com
Slide 24: Disclaimer
Disclaimer Disclaimer This presentation is being provided to you solely for your information and may not be reproduced or further distributed to any other person or published, in whole or in part, for any purpose. This presentation comprises the written materials/slides for a presentation concerning