Kernel Holding S.a. · GPW:KER
Kernel — FY2020 Earnings Presentation
28 slides from Kernel's earnings presentation, October 2020
Slide 1: Kernel Holding S.A. FY2020 results and company presentation
Kernel Holding S.A. FY2020 results and company presentation October 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. FY2020 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 4: 1.1 FY2020 highlights
FY2020 results results Balanced and outlook and outlook Kernel today growth strategy Financials 1.1 FY2020 highlights ◼ Revenue 4% y-o-y to US$ 4,107m on the back of change in physical trade US$ million except EPS FY2019 FY2020 y-o-y Income statement highlights structure of our Avere subsidiary in
Slide 5: 1.2 Segment results
FY2020 results results Balanced and outlook and outlook Kernel today growth strategy Financials 1.2 Segment results Segment volumes, m tons EBITDA margin EBITDA, US$ m Oilseed 3.4 120 152 3.0 3.1 3.2 100 129 Processing 2.7 83 109 100 67 54 77 1.4 1.6 1.5 1.1 1.2 FY2016 FY2017 FY2018 FY2019 FY2020 FY
Slide 6: 1.3 Segments results and harvest update
results FY2020 results Balanced and outlook and 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 2 EBITDA margin, US$ / t ◼ EBITDA margin 49% y-o-y to US$100 per ton of oil
Slide 7: 1.4 IFRS 16 impact
results FY2020 results Balanced and outlook and outlook Kernel today growth strategy Financials 1.4 IFRS 16 impact ◼ Starting from Q1 FY2020, Kernel introduced IFRS 16 Leases with application of retrospective approach and did not restate comparatives, as permitted under the transitional provisions o
Slide 8: 1.5 Outlook for FY2021
FY2020 results results Balanced and outlook and outlook Kernel today growth strategy Financials 1.5 Outlook for FY2021 ◼ Crushing margin in FY2021 is likely to normalize from strong US$ 100 EBITDA per ton of oil achieved in FY2020: – Sunflower seed harvest in Ukraine in FY2021 is expected to decline
Slide 9: Content: 2. Kernel today
Content 1. FY2020 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 10: 2.1 Kernel today
FY2020 results Balanced and outlook Kernel today Kernel today growth strategy Financials 2.1 Kernel today Oilseed Processing segment Key financials FY2016 FY2017 FY2018 FY2019 FY2020 EBITDA 1, US$ million ◼ #1 sunflower oil producer (7% of global production) and Revenue US$ m 1,989 2,169 2,403 3,960
Slide 11: 2.2 What we do
FY2020 results Balanced and outlook Kernel today Kernel today growth strategy Financials 2.2 What we do 1 Own farming: Kernel 6 Grain export: Kernel exported 7.9 million tons of grains and operates 514 thousand ha of 3.1 MT oilseeds from Ukraine, entering into forward contracts within the leasehold
Slide 12: 2.3 Efficient and well-invested asset base
FY2020 results Balanced and outlook Kernel today Kernel 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 1,0
Slide 13: 2.4 Kernel's key milestones
FY2020 results Balanced and outlook Kernel today Kernel 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 bra
Slide 14: 2.5 Oilseed Processing segment
FY2020 results Balanced and outlook Kernel today Kernel today growth strategy Financials 2.5 Oilseed Processing segment FY20 EBITDA Segment performance Profitability drivers and FY2021 outlook Sunflower oil price Segment volumes million tons ◼ Record oilseed processing volumes: 1 US$ per ton of unre
Slide 15: 2.6 Infrastructure and Trading segment
FY2020 results Balanced and outlook Kernel today Kernel today growth strategy Financials 2.6 Infrastructure and Trading segment FY20 EBITDA Segment performance Profitability drivers and FY2021 outlook Segments volumes Grain supply in Ukraine million tons ◼ Record grain export volumes from Ukraine 1
Slide 16: 2.7 Farming segment
FY2020 results Balanced and outlook Kernel today Kernel today growth strategy Financials 2.7 Farming segment FY20 EBITDA Segment performance Profitability drivers and FY2021 outlook Kernel’s key crop production ◼ 513k ha harvested in FY2020, reaching 1 Ukraine corn and wheat prices, 596 529 513 US$
Slide 17: 2.8 Credit highlights
FY2020 results Balanced and outlook Kernel today Kernel today growth strategy Financials 2.8 Credit highlights Credit portfolio as of 30 June 2020, US$ m Kernel Eurobonds mid-YTM Amount Undrawn facilities / 18% 2022 8.75% bond Mid YTM, % 2024 6.5% bond Mid YTM, % 16% outstanding Limit Interest rate
Slide 18: Content: 3. Balanced growth strategy
Content 1. FY2020 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 19: 3.1 Kernel's mid-term strategy
Balanced FY2020 results growth Balanced and 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 busin
Slide 20: 3.2 Strategy 2021 serves as a solid basis for future growth
Balanced FY2020 results growth Balanced and 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 September US$ million FY2017 FY2018 FY2019
Slide 21: Content: 4. Financials
Content 1. FY2020 results and outlook 2. Kernel today 3. Balanced growth strategy 4. Financials Appendices
Slide 22: 4.1 Consolidated statement of profit or loss
FY2020 results Balanced and 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 Revenue 215 350 663 1,047 1,020 1,899 2,072 2,797 2,393 2,
Slide 23: 4.2 Balance sheet
FY2020 results Balanced and outlook Kernel today growth strategy Financials Financials 4.2 Balance sheet Balance sheet highlights US$ million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Cash & cash equivalents 6 25 89 129 59 116 83 79 65 129 60 143 132 77 369 Net trade
Slide 24: 4.3 Cash flow statement
FY2020 results Balanced and 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 EBITDA 17 46 123 190 190 310 319 288 223 397 346 319 223 346 443 Finance cost paid (9) (18) (28) (32)
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 Q1 FY2021 Operations Update 26 October 2020 Q1 FY2021 Financial Report 27 November 2020 Annual general shareh
Slide 26: Appendices
Content 1. FY2020 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