Rusagro Group · RUS:RAGR
Rusagro — Ros Agro — Investor Presentation (April 2020)
23 slides from Rusagro's investor presentation, April 2020
Slide 1: Investors Presentation
INVESTORS PRESENTATION ROS AGRO PLC April 2020 20 November 2018
Slide 2: Ros Agro Overview
ROS AGRO OVERVIEW wZros acro VA PLC
Slide 3: Disclaimer
DISCLAIMER IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by ROS AGRO PLC (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows the oral pre
Slide 4: Company Overview
COMPANY OVERVIEW A LEADING AGRICULTURAL COMPANY IN RUSSIA WITH A 25-YEARS HISTORY AND CONTINUED GROWTH HIGHLIGHTS 2019 KEY GROWTH DRIVERS SALES Adj. EBITDA 1 2 3 Vertically 20 State-of-the-art Strong brand 67% 138 RUB bn 24% RUB bn integrated and diversified operations with facilities with strategic
Slide 5: Business Model
BUSINESS MODEL EFFICIENT AND STABLE CLUSTER-ORIENTED BUSINESS MODEL BENEFITING FROM SCALE, VERTICAL INTEGRATION AND DIVERSIFICATION MEAT SEGMENT OIL&FAT SEGMENT SUGAR SEGMENT MILK PRODUCTS B2B B2C B2B B2C B2B B2C B2B B2C Select clients Select clients Select clients #11 • Dehydrated IN RUSSIA AND ABR
Slide 6: Geographical Presence
GEOGRAPHICAL PRESENCE ASSETS OF THE COMPANY ARE LOCATED IN 14 CONSTITUENT ENTITIES OF THE RUSSIAN FEDERATION 6
Slide 7: Returns and Capex Structure by Segment
RETURNS AND CAPEX STRUCTURE BY SEGMENT IN 2019, OIL&FAT SEGMENT GENERATED 42% OF TOTAL SALES, WHILE AGRICULTURE SEGMENT BROUGHT 33% OF EBITDA. CAPACITY EXPANSION PROJECTS IN MEAT SEGMENT REQUIRED THE HIGHEST LEVEL OF INVESTMENTS. CONSOLIDATED SALES CONSOLIDATED ADJ. EBITDA RUSAGRO’S CAPEX RUB billio
Slide 8: Segments Overview 2019
SEGMENTS OVERVIEW 2019 ONE OF THE LARGEST SUGAR, MEAT, AGRI AND OIL&FATS PRODUCERS IN RUSSIA WITH TOP MARKET POSITIONS BUSINESS SEGMENT* SHARE IN PRODUCTION PRODUCTION, THS TONNES SALES VOLUMES Sugar, ths t Processing capacity, ths t/day 984 №3 SUGAR PRODUCER IN 110 0 97. 0 100 0 881 89. 0 • Beet su
Slide 9: Rusagro by Segment
RUSAGRO BY SEGMENT wZrOos acro WA PLC
Slide 10: Meat Russian Market Overview
MEAT RUSSIAN MARKET OVERVIEW CONTINUED PORK PRODUCTION GROWTH AND LIMITED EXPORT PUT PRESSURE ON LOCAL PRICES IN 2019 PORK PRODUCTION PORK TRADE IN RUSSIA Slaughtered weight, million tonnes Thousand tonnes • In 2019, Russia increased production of pork by 5% Farms enterprises & private farms Export
Slide 11: Meat Segment Results
MEAT SEGMENT RESULTS SALES VOLUMES GROWTH TRIGGERED BY PRODUCTION EXPANSION LED TO SALES RISE, BUT HIGHER GRAIN COSTS PUSHED EBITDA DOWN OPERATIONAL RESULTS Sale volumes of processed pork, ths t Sale price of livestock pigs, RUB/kg excl. VAT • In 2019, following the production growth of 19% Sale vol
Slide 12: Meat Segment Strategy
MEAT SEGMENT STRATEGY PRODUCTION EXPANSION AND FURTHER INCREASE OF PROCESSED PORK SALES ARE KEY GROWTH TRIGGERS MID-TERM GOALS PORK PRODUCTION PIGS LIVESTOCK Pork in live weight, Thousand pigs thousand tonnes Number of animals slaughtered • Ongoing projects will continue to push • TIMELY LAUNCH OF O
Slide 13: Oil&Fat Russian Market
OIL&FAT RUSSIAN MARKET HIGH YIELDS INCREASED OIL PRODUCTION IN RUSSIA AND ALLOWED EXPORT GROWTH, WHILE CHANGES ON LOCAL MARKET REGULATIONS LED TO PALM OIL IMPORT RISE CRUDE VEGETABLE OIL PRODUCTION CRUDE VEGETABLE OIL TRADE IN RUSSIA Million tonnes Million tonnes Export Import • In the 2018/2019 sea
Slide 14: Oil&Fat Russian Market – Key Players
OIL&FAT RUSSIAN MARKET – KEY PLAYERS IN 2019 RUSAGRO IMPROVED ITS POSITIONS ACROSS ITS ALL OIL-AND-FAT PRODUCTS AND ACHIEVED LEADING POSITIONS IN FOUR OUT OF FIVE PRODUCT CATEGORIES CRUDE SUNFLOWER OIL PRODUCERS INDUSTRIAL FATS PRODUCERS IN RUSSIA IN 2018/2019 SEASON IN RUSSIA IN 2019 % of crude sun
Slide 15: Oil&Fat Segment Operational and Financial Results
OIL&FAT SEGMENT OPERATIONAL AND FINANCIAL RESULTS SALE VOLUMES GROWTH TRIGGERED SALS AND ADJ. EBITDA INCREASE OF THE SEGMENT, WHILE MARGINS YET TO REACH THEIR POTENTIAL DUE TO THE USE OF TOLLING SHEME IN THE 1H 2019 OPERATIONAL RESULTS B2C PRODUCTS SALES VOLUME, THOUSAND TONNES B2B PRODUCTS SALES VO
Slide 16: Oil&Fat Segment Strategy
OIL&FAT SEGMENT STRATEGY PRODUCTION EXPANSION VIA RENTING SOLPRO ASSETS DURING FULL YEAR IS THE KEY GROWTH DRIVER MID-TERM GOALS RUSAGRO’S PRODUCTION VOLUMES, THOUSAND TONNES • STRENGTHEN POSITIONS AMONG Meal Crude oil Industrial fats Total LEADING OIL-AND-FAT PRODUCTS Consumer margarine +103% PRODU
Slide 17: Sugar Russian Market
SUGAR RUSSIAN MARKET HIGH STOCKS LEVEL AND EXPECTED SUGAR PRODUCTION GROWTH PUSHED PRICES DOWN TO RECORD LOW LEVEL SUGAR PRODUCTION SUGAR TRADE IN RUSSIA Million tonnes Thousand tonnes Processed sugar beet volumes, million t • In 2019, the gross yield of sugar beets in Russia Export Import increased
Slide 18: Sugar Segment Results
SUGAR SEGMENT RESULTS LOW SUGAR SALE PRICE RESULTED IN DROP OF EBITDA AND MARGINS OPERATIONAL RESULTS Sugar sales volume, thousand tonnes Sugar sale price, RUB/kg excl. VAT • In 2019, sugar sales increased by 46% (+319 ths t) — 40 39 up to 1,022 ths t. During the first 9M 2019, Rusagro 31 31 sold 29
Slide 19: Sugar Segment Strategy
SUGAR SEGMENT STRATEGY INCREASE OF EXTRACTED SUGAR LEVEL, IMPROVED SUGAR BEETS STORAGE AND AUTOMOTISATION WILL BE THE KEY GROWTH DRIVERS MID-TERM GOALS KEY AUTOMATION AND INNOVATIONS INNIATIVES • SUGAR LOSS DECREASE THROUGH The Long-term Storage Programme The Raw Materials Management System THE LAUN
Slide 20: Agriculture Russian Market Overview
AGRICULTURE RUSSIAN MARKET OVERVIEW INCREASE OF CULTIVATED LAND AREA AND YIELD PER HECTARE OF ALL CROP TYPES LED TO GROSS YIELD GROWTH WHILE HIGH GRAIN DOMESTIC PRICES REDUCED EXPORT VOLUMES TOP-4 LANDHOLDERS, 2018 CROPS HARVEST GRAINS AND OIL CROPS EXPORT Thousand hectares Million tonnes Million to
Slide 21: Agriculture Segment Results
AGRICULTURE SEGMENT RESULTS HIGH SALES VOLUMES AND PRICE OF GRAINS TRIGGERED SALES AND EBITDA GROWTH, WHICH WAS YET LIMITED DUE TO RECORD LOW SUGAR BEET SALE PRICE OPERATIONAL RESULTS GRAIN AND OIL CROPS SALES VOLUME, THOUSAND TONNES • In 2019, sales volume of crops rose by 24% to 5.4 mn t Grains Oi
Slide 22: Agriculture Segment Strategy
AGRICULTURE SEGMENT STRATEGY GROWTH OF HIGHLY-EFFICIENT ARABLE LAND, IMPROVED SUGAR BEET HYBRIDS AND PRECISE FIELD MANAGEMENT SYSTEMS ARE THE KEY GROWTH DRIVERS MID-TERM GOALS KEY AUTOMATION AND INNOVATIONS INNIATIVES Sugar Beet Genetic Selection Centre In order to digitalise the strategic • OPTIMIS
Slide 23: Contacts
CONTACTS Svetlana Kuznetsova Head of Investment Department E-mail: [email protected] Tel.: +7 (495) 363-1661 www.rusagrogroup.ru/eng 23