Astarta Holding PLC · GPW:AST
Astarta — Investor Presentation (November 2009)
26 slides from Astarta's investor presentation, November 2009
Slide 1: ASTARTA Holding N.V. Leading in agricultural & sugar business
ASTARTA Holding N. V. Leading in agricultural & sugar business November, 2009
Slide 2: Ukraine's agricultural sector potential
Ukraine’s agricultural sector potential Ukraine’s agriculture is one of the world’s most attractive targets for investments About 80% of the agricultural area is arable land (33 mln.ha) Two-thirds of the total area is covered with “Black soil” Convenient geographical position and favorable climate c
Slide 3: Ukraine: Macroeconomic situation
Ukraine: Macroeconomic situation Economic growth,% y-o-y Economy expanded in Q3 4% q-o-q in seasonally adjusted terms Real GDP will drop 12-14% y-o-y in 2009, but expected to grow 2-4% in 2010 Current account deficit shrunk y-o-y from $8,1 bln to $1 bln Stabilization of Ukrainian hryvnia exc
Slide 4: ASTARTA at a glance
ASTARTA at a glance Mission 1993 – start of the Company To produce top quality products with use of 1999 –control stake of Yaresky Sugar plant (Poltava region) the state-of-an-art acquired technologies to meet market demand 2003 –Kobelyaki Sugar Plant (Poltava region) and Zhdanivsky Sugar Plant (Vin
Slide 5: ASTARTA key figures and facts
ASTARTA key figures and facts Business Leading vertically integrated business with own production assets, infrastructure, storages, and logistics 16 years in sugar and agricultural industry 5 regional business-units geographically grouped around sugar plants Production assets Total daily processing
Slide 6: Group restructuring: streamlined
Group restructuring: streamlined Before restructuring After restructuring SP SP SP SP SP SP ASTARTA ASTARTA SP SP SP SP SP Agrifirms More than 60 agrifirms SP Sugar plant 5 regional business-units Restructuring advantages Optimal and effective use of production assets Easier to run & control busines
Slide 7: Geography of the business
Geography of the business LLC «Volochysk-Agro» LLC Agricultural company «Dovzhenko» 27 th. ha of agricultural land 50 th. ha of agricultural land Narkevychi sugar plant Yaresky sugar plant LLC IPC «Poltavazernoproduct» 37 th. ha of agricultural land Globino sugar plant Veselopodilsky sugar plant LLC
Slide 8: Key production assets
Key production assets 200,000 200,000 180,000 175,000 166,000 160,000 135,000 140,000 120,000 23,000 100,000 21,000 90,000 20,260 80,000 66,900 17,630 17,630 17,630 60,000 44,000 14,250 40,000 11,100 25,700 20,000 0,000 2003 2004 2005 2006 2007 2008 2009E 2010F Area of agricultural land under lease,
Slide 9: 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 8 4 Fallow land Other Sunflower 7 5 12 Sunflower Sugar Beet Sugar Beet 11 Corn 34 30 Corn 14 10 Soybeans Soybeans 15 14 Forage Forag
Slide 10: Sugar segment
Sugar segment Sowing areas under sugar beet Annual expanding of land under sugar beet thousand hectares cultivations 40 35 36 Growth of sugar beet yield to EU level with 30 30 34 25 use of high quality fertilizers and crop 20 23 protecting agents 15 16 10 Sugar production is vertically integrated 5
Slide 11: Sugar segment: production
Sugar segment: production Sugar production, thousand tons Gas consumption (cubic meters per ton of beet processed) 1 800 >90% 70 1 724 84% 1 500 1 500 60 64 61 71% 57 1 200 50 1 241 1 203 49 40 44 900 42% 35 30 600 684 670 31% 20 300 17% 10 235,6 220 79,2 87,5 160,6 155,5 0 0 2004 2005 2006 2007 200
Slide 12: Sugar sales
Sugar sales Major clients Sugar sales, clients’ shares Strong position in the B2B segment by supplying sugar for industrial processing 9M 2009: About 83% of Group’s sugar was sold to big industrial consumers Average prices for sugar in 2007-2009, UAH per ton, VAT excl. Flexibility of the Group’s mar
Slide 13: Ukrainian sugar sector perspectives
Ukrainian sugar sector perspectives Sugar beet acreage and sugar production 1800 5386 Advantages of Ukrainian sugar sector 1600 5000 1400 4000 Potential for further consolidation 1200 1000 2595 3000 Space for efficiency improvement 800 1607 1789 1894 1859 1551 1650 1430 1550 1573 2000 600 856 970 12
Slide 14: World sugar price performance
World sugar price performance Price performance of raw and white sugar In 2009 the world production level is 650,00 600,00 581,1 lower than consumption. The global 550,00 481,02 deficit in 2009/2010 of about 10 million 500,00 tons exceeds forecasts and is forcing the 450,00 400,00 price rally 350,00
Slide 15: Agricultural segment
Agricultural segment Grain crops and oilseeds production, The Group's total output of grains and oilseeds in thousand tons 2009 is expected to be at a level of 375 thousand 400 tons 390 375 300 ASTARTA's agricultural companies harvested 222 thousand tons of early grains on the area of 59 200 201 tho
Slide 16: ASTARTA crop sales & markets
ASTARTA crop sales & markets The breakdown of crops sales The Ukrainian hryvnia depreciation became a positive by clients in 9M 2009, value incentive for grain export Louis Dreyfus 23% More than 45% of all revenues from crops sales in 9M 2009 constituted export incomes Other International traders ab
Slide 17: ASTARTA cattle farming business
ASTARTA cattle farming business Cattle farming 30 000 60 50,8 25 000 26.5 50 25.6 42 18.2 20 000 40 28,1 33,2 15 000 30 15.5 14.7 20,6 19,8 10 000 10.9 11 20 10 8.0 5 000 6.4 10 4.9 4.5 0 0 2005 2006 2007 2008 2009E 2010F Heads of cattle, ths. heads (l.s.) Heads of cows, ths. heads (l.s.) Milk produ
Slide 18: Breakdown of revenues: 9M 2008 to 9M 2009
Breakdown of revenues: 9M 2008 to 9M 2009 9M 2008 9M 2009 Other sales Other sales and and services services 5% 6% Cattle Cattle farming farming 7% 10% Crops Crops €71.0 mln Sugar 25% €75.3 mln Sugar 25% 55% 58% Sugar by- Sugar by- products products 5% 4% The Group’s revenues growth by 6% y-o-y in 9M
Slide 19: Debt portfolio: restructured
Debt portfolio: restructured Structure of Group’s debt portfolio by share before after 7% Effective optimization of debt structure 48% 52% 93% Long-term debt Short-term debt Long-term debt Short-term debt Structure of Group’s total debt by currencies (as of November, 1, 2009) Before restructuring Af
Slide 20: 9M 2009/2008 main financials comparison
9M 2009/2008 main financials comparison Revenues up 6% to EUR 75.3 mln (in UAH terms 57% to UAH 839.8 mln) Profit from operations (EBIT) up 10% to EUR 29.2 mln (in UAH terms 61% to UAH 322.1 mln) EBIT margin up to 39% from 37% EBITDA up 8% to EUR 35.4 mln (in UAH terms 59% to UAH 390.9 mln) EBITDA m
Slide 21: Export sales
Export sales Export Sales Export Sales in 2007-2010, million USD in 9M 2008 and 9M 2009, million USD 30 14 25 12 25 12.3 20 10 8 9.3 15 18 14,7 6 10 4 5 8 2 0 0 2007 2008 2009E 2010F 9M 2008 9M 2009 Export sales in the 9M 2009 grew y-o-y by 33% to US$12,3 million. Export sales in 2009 expected to be
Slide 22: Key Financial results
Key Financial results 9M 2009 9M 2008 2008 2007 2006 2005 (unaudited) (unaudited) (audited) (audited) (audited) (audited) Revenues 75,270 71,049 123,382 87,747 68,051 51,783 Cost of revenues 51,202 48,439 (88,735) (63,145) (53,984) (36,403) Gross profit 22,793 31,526 34,647 24,602 14,067 15,380 Gros
Slide 23: 9M 2009 Financial results: margins and ratios
9M 2009 Financial results: margins and ratios Ratios 9 months 9 months 2009 2008 Margins Gross profit margin % 30% 44% EBIT margin % 39% 37% EBITDA margin % 47% 46% Net profit margin % 28% 28% Ratios ROE,% 28 16 ROA,% 11 7 Current Ratio 1.8 1.5 Quick Ratio 0.4 0.3 EV/Sales 3.1 4.1 EV/EBITDA 6.5 9 Ne
Slide 24: Outlook: 2010
Outlook: 2010 Modernization of sugar plants securing growth of daily processing capacity Operations and increase of efficiency of production Implementation of energy efficiency program at sugar plants resulting in lower gas consumption Increase of agricultural production and sugar output Revenues Gr
Slide 25: Contacts
Contacts: Viktor Ivanchyk, CEO + 380 44 585 94 15 Petro Rybin, CFO&COO + 380 44 585 94 17 Mykola Kovalski, Director on Development & IR + 380 44 585 94 71 [email protected] To learn more visit www.astartakiev.com
Slide 26: 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
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