Kernel Holding S.a. · GPW:KER
Kernel — Q1 FY2017 Earnings Presentation
30 slides from Kernel's earnings presentation, December 2016
Slide 1: Q1 FY2017 Results
7 WR as A KERNEL Q1FY2017 RESULTS
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 fair- ness, accuracy, completeness or correctness of the information or opinions contained herein. Neither
Slide 3: Q1 FY2017 highlights
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Q1 FY2017 highlights Key highlights: USD million except ratios and EPS Q1 FY2017 Q1 FY2016 y-o-y ii Revenues remained marginally flat, up 2% to USD 384.1 million in Q1 FY2017 stem- P&L highlights ming fr
Slide 4: Sunflower oil in Q1 FY2017
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Sunflower oil in Q1 FY2017 Sunflower oil sales in bulk Sunflower sold in bulk EBITDA Sunflower oil sold in bulk segment (thousand tons) (USD per ton) ii Lower market-wide availability of sunflower seeds
Slide 5: Grain and infrastructure in Q1 FY2017
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Grain and infrastructure in Q1 FY2017 Grain exports Grain exports EBITDA Grain marketing (thousand tons) (USD per ton) ii Grain sales increased 27% y-o-y to 1,181 thousand tons in Q1 FY2017 stem- ming fr
Slide 6: Farming in Q1 FY2017
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Farming in Q1 FY2017 Farming Net crop yields (tons per hectare) ii At the date of this report publication, 90% acreage harvesting for FY2017 was completed, with double-digit percentage growth of crop yie
Slide 7: Q1 FY2017 segment results
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Q1 FY2017 segment results Revenue, USD million EBITDA, USD million EBITDA margin, % Volumes, thousand tons Q1 FY2017 Q1 FY2016 y-o-y Q1 FY2017 Q1 FY2016 y-o-y Q1 FY2017 Q1 FY2016 Q1 FY2017 Q1 FY2016 y-o-
Slide 8: Q1 FY2017 balance sheet
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Q1 FY2017 balance sheet Balance sheet highlights USD million 30 Sep 2016 30 Jun 2016 30 Sep 2015 Invested Capital Cash & cash equivalents 93.3 60.4 76.1 Net trade accounts receivable 41.8 75.2 57.9 Inven
Slide 9: Q1 FY2017 P&L and Cash flows
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Q1 FY2017 P&L and Cash flows P&L highlights USD million except ratios and EPS Q1 FY2017 Q1 FY2016 y-o-y Revenue 384.1 377.7 1.7% Net IAS 41 gain 33.4 2.1 15.8x Gross profit 95.7 74.1 27.7% EBITDA(1) 72.4
Slide 10: Kernel at a glance
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Kernel at a glance Sunflower oil Stock information EBITDA $129m ii #1 sunflower oil producer and exporter in Ukraine. Exchange Warsaw Stock Exchange ii 3.5 million tons/year sunflower seed crushing capac
Slide 11: Kernel's key milestones and shareholder overview
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Kernel’s key milestones and shareholder overview Entered the Russian market by acquiring Russian Oils. Acquired farming companies Ukrros Exited highly volatile Began with asset-light Acquired the oil bra
Slide 12: Kernel operates a fully integrated business model
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Kernel operates a fully integrated business model 1 Own farming / third party 7 Bottled sunflower oil: Ap- 8 Export terminals: Operates 2 2 farmers: 390,000ha of prox. 10% of gross bulk sun- deepwater gr
Slide 13: Well-invested and strategic asset base representing high barriers to entry
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Kernel has a well-invested and strategic asset base representing high barriers to entry Kursk Voronezh Chernihiv Poltava, 429 thousand tons Lutsk Sumy Belgorod Prikolotnoe, Rivne 171 thousand tons Kyiv Z
Slide 14: Kernel's mid-term strategy
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Kernel’s mid-term strategy We aim to profitably double export volumes, providing unique complex solutions to our clients: customers and suppliers, by balanced develop- ment of our business segments as a
Slide 15: Sunflower Oil
Sunflower Oil
Slide 16: Our business model
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Our business model ii #1 oilseed crusher in Ukraine; total capacity of 3.5 million tons of sunflower Sunflower seed industrial crushing capacity in Sunflower oil sold in bulk exports by Ukraine (million
Slide 17: Sunflower oil in FY2016
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Sunflower oil in FY2016 Sunflower oil sold in bulk Sunflower oil sold in bulk EBITDA Sunflower oil sold in bulk (thousand tons) (USD/ton, %) ii While the supply of sunflower seed recovered to a normalize
Slide 18: Grain and Infrastructure
Grain and Infrastructure
Slide 19: Our business model
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Оutlook Our business model Grain and oilseed production in Ukraine Grain and oilseed production in Russia ii Top grain exporter from the Black Sea region, with a market share in (million tons) (million tons) Ukr
Slide 20: Grain and infrastructure in FY2016
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Оutlook Grain and infrastructure in FY2016 Grain sales Grain segment’s EBITDA Grain export: (thousand tons) (USD/ton, %) 14.0 ii Grain sales volumes stood at 4.4 million tons, down 7% y-o-y, due to the 12.7 12.5
Slide 21: Infrastructure as captive origination platform supporting growing exports
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Оutlook Kernel’s infrastructure is a captive origination platform, supporting growing export volumes, 13% CAGR over the past three years Kernel’s grain exports, thousand tons Ukraine Russia (Country of originati
Slide 22: Farming
Farming
Slide 23: Our business model
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Our business model Kernel’s farmed acreage crop mix ii Large-scale crop production on 390,000 hectares of leasehold farmland in Ukraine. 7% 9% 7% 7% ii A crop mix based on four crops allows us to focus o
Slide 24: Farming in FY2016
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Farming in FY2016 Acreage harvested Farming segment EBITDA Farming: (thousand hectares) (USD/hectare, %) ii In FY2016, our farming division contributed 38% of the Group EBITDA, 391 376 389 thus having an
Slide 25: Financials and outlook
Financials and outlook
Slide 26: Track record of strong financial performance
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Kernel has a track record of strong financial performance USD mln, except multiples FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Commentary: Income statement highlights ii
Slide 27: Balance sheet
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook Balance sheet Balance sheet highlights USD million FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Invested capital Cash & cash equivalents 6.4 25.3 88.5 129.3 59.5 115.9 82.
Slide 28: P&L and cash flow
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook P&L and cash flow P&L highlights USD million except ratios and EPS FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Revenue 215.2 350.4 663.1 1,047.1 1,020.5 1,899.1 2,071.8 2
Slide 29: FY2017 outlook
Kernel at Sunflower Grain and Financials & Q1 FY2017 a glance Oil Infrastructure Farming Outlook FY2017 outlook Sunflower oil ii In preparation for the upcoming marketing year, our Black Sea Industries, a crushing plant located in Chornomorsk (formerly Illichevsk), underwent improvements in its stor
Slide 30: IR contact
IR contact Yuriy Kovalchuk Jamil Zakaraiev Corporate Investment Director Investor Relations Manager [email protected] [email protected] Tel.: +38 044 461 88 01, ext. 70-44 3 Tarasa Shevchenka Lane, Kyiv, Ukraine, 01001 Investor calendar ii Annual general meeting of shareholders 12 December 2016 ii Q2