Kernel Holding S.a. · GPW:KER
Kernel — Q1 FY2019 Earnings Presentation
28 slides from Kernel's earnings presentation, Nov 29, 2018
Slide 1: Kernel Holding S.A. Q1 FY2019 results and company presentation
Kernel Holding S.A. Q1 FY2019 results and company presentation 29 November 2018
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: 1. Q1 FY2019 results and outlook
1. Q1 FY2019 results and outlook
Slide 4: 1.1 Q1 FY2019 highlights
Q1 FY2019 FY2019 results and results and Balanced outlook outlook Kernel today growth strategy Financials 1.1 Q1 FY2019 highlights Q1 Q1 Revenue for the period doubled y-o-y to US$ 1.1 bn, driven by strong grain export US$ million except ratios and EPS FY2018 FY2019 y-o-y volumes and growing physi
Slide 5: 1.2 Segment results Q1 FY2019
Q1 FY2019 FY2019 results and results and Balanced outlook outlook Kernel today growth strategy Financials 1.2 Segment results Q1 FY2019 Segments results (new format) Starting from Q1 FY2019 company moved to three segment disclosure instead of six Revenue, US$ m EBITDA, US$ m segment: Q1 Q1 Q1 Q1 y
Slide 6: 1.3 Harvest update and segments volumes
Q1 FY2019 FY2019 results and results and Balanced outlook outlook Kernel today growth strategy Financials 1.3 Harvest update and segments volumes Harvest update Record-breaking yields in key crops owing to: Acreage Net yield Net tonnage – Supportive weather conditions; thousand hectares tons / ha
Slide 7: 1.4 Outlook for FY2019
Q1 FY2019 FY2019 results and results and Balanced outlook outlook Kernel today growth strategy Financials 1.4 Outlook for FY2019 Oilseed Processing Improvement of crushing margin is expected as a record sunflower seed harvest of around 16m tons in FY2019 (up 18% y-o-y) shall improve oilseed supply
Slide 8: 2. Kernel today
2. KERNEL TODAY
Slide 9: 2.1 Kernel today
Q1 FY2019 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.1 Kernel today Oilseed processing segment EBITDA 1, US$ million Key financials, US$ m1 FY15 FY16 FY17 FY18 LTM #1 sunflower oil producer and exporter in the world 213 Revenue 2,330 1,989 2,169 2,403 3,007
Slide 10: 2.2 What we do
Q1 FY2019 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.2 What we do 1 Own farming: Kernel 6 Bottled sunflower oil: 7 Export terminals: Kernel operates 550 thousand ha of Approximately 8% of gross operates farmland in Ukraine bulk sunflower oil produced is • Dee
Slide 11: 2.3 Efficient and well-invested asset base
Q1 FY2019 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.3 Efficient and well-invested asset base Sunflower seed crushing capacity in thousand tons Poltava Transshipment capacity in thousand tons 429 Vovchansk 363 Prykolotne 172 Prydniprovskyi 617 Ellada1 275 Kir
Slide 12: 2.4 Kernel's key milestones
Q1 FY2019 results and Balanced outlook Kernel Kernel today 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 export platform sunflower oil brand the Warsaw
Slide 13: 2.5 Oilseeds Processing segment
Q1 FY2019 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.5 Oilseeds Processing segment Sunflower oil sales EBITDA margins Segment’s EBITDA on the LTM basis down 34% y-o-y, to US$ 72m thousand tons US$ / ton of sunflower oil sold – Weaker crushing and sales volu
Slide 14: 2.6 Infrastructure and Trading segment
Q1 FY2019 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.6 Infrastructure and Trading segment Key segment volumes Operational highlights Key export markets in FY2018 Trading volumes 4.5m tons exported from Ukraine on the LTM basis, 16% up y-o-y Thousand tons (e
Slide 15: 2.7 Farming segment
Q1 FY2019 results and Balanced outlook Kernel Kernel today today growth strategy Financials 2.7 Farming segment Acreage harvested Crop yields 1 FY2019E thousand hectares 596 tons per hectare, net FY2018 529 9.8 FY2017 50 8.9 LTM EBITDA of US$ 125m, 9% up y-o-y 65 35 FY2016 383 391 385 36 7.2 7.3 F
Slide 16: 3. Balanced growth strategy
3. Balanced growth strategy
Slide 17: 3.1 Kernel's mid-term strategy
Q1 FY2019 Balanced results and Balanced growth 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 bu
Slide 18: 3.2 Strategy 2021 serves as a solid basis for future growth
Q1 FY2019 Balanced results and Balanced growth outlook Kernel today strategy growth strategy Financials 3.2 Strategy 2021 serves as a solid basis for future growth Strategy 2021 pipeline overview: Approximate CapEx budgets, US$ m (excl. VAT) I Construction of greenfield oilseed processing plant in W
Slide 19: 4. Financials
4. FINANCIALS
Slide 20: 4.1 Consolidated statement of profit or loss
Q1 FY2019 results and Balanced 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 LTM Revenue 215 350 663 1,047 1,020 1,899 2,072 2,797 2,393 2,330
Slide 21: 4.2 Balance sheet
Q1 FY2019 results and Balanced outlook Kernel today growth strategy Financials Financials 4.2 Balance sheet Balance sheet highlights 30 Sep US$ million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 2018 Cash & cash equivalents 6 25 89 129 59 116 83 79 65 129 60 143 132 112 Net tra
Slide 22: 4.3 Cash flow statement
Q1 FY2019 results and Balanced 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 LTM EBITDA 17 46 123 190 190 310 319 288 223 397 346 319 223 277 Finance cost paid (9) (18) (28) (32) (23) (3
Slide 23: 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 FY2019 Financial Report 29 November 2018 Annual general shareholders’ meeting 10 December 2018 Q2 FY
Slide 24: Appendices
APPENDICES
Slide 25: A1. Key highlights
A1. Key highlights Kernel operates in globally competitive growing Ukrainian agri sector Integrated, resilient and simple business model built around scale & global reach Leader across all market segments supported by unparalleled world-class asset base with high barriers to entry Top standa
Slide 26: A2. Markets and business environment: Sunflower oil
A2. Markets and business environment Sunflower oil Global consumption of vegetable oils Global sunflower oil exports Global edible oils market trends million tons million tons Consumption of edible oils increased by 4.0% y-o-y in marketing year 191 10.4 2017/18, versus 3.3% growth a year ago, reac
Slide 27: A2. Markets and business environment: Infrastructure and Trading
A2. Markets and business environment Infrastructure and Trading Global grain exports Top grain exporting countries Top 5 grain exporters from Ukraine million tons million tons 2014/15 2015/16 2016/17 2017/18 429 415 429 United States Nibulon SFGCU Nibulon Nibulon 394 377 SFGCU Kernel Kernel Kernel 2
Slide 28: A2. Low cycle of soft commodity prices
A2. Markets and business environment Low cycle of soft commodity prices Index of soft commodity prices, US$-inflation adjusted 300% 250% 200% 150% 100% 50% Nov‐03 Nov‐04 Nov‐05 Nov‐06 Nov‐07 Nov‐08 Nov‐09 Nov‐10 Nov‐11 Nov‐12 Nov‐13 Nov‐14 Nov‐15 Nov‐16 Nov‐17 Nov‐18 1 2 3 Wheat Corn Sunflower oil N