Rusagro Group · RUS:RAGR
Rusagro — ROS Agro — Q3 2016 Earnings Presentation
29 slides from Rusagro's earnings presentation, Nov 21, 2016
Slide 1: ROS AGRO PLC Investor Presentation 9M 2016 and Q3 2016
ROS AGRO PLC Investor Presentation 9M 2016 and Q3 2016 21 November 2016
Slide 2: Table of Contents
Table of Contents 1 Business Overview by division (IFRS) 3 2 9M 2016 and Q3 2016 (IFRS) Summary 14 3 Additional information 20 2
Slide 3: Business Overview by division (IFRS)
Section 1 Business Overview by division (IFRS) 9M 2016 and Q3 2016 vs 9M 2015 and Q3 2015
Slide 4: Sugar: Q3 2016 key indicators
Sugar Key indicators Actual Q3 2016 vs Actual Q3 2015 (IFRS) Comments Sugar: sales, Adjusted EBITDA and Adjusted EBITDA Sales (RR -278 million, -3%): • The major negative factor is a decrease in sugar sales volume (-14 ths tn, -7%) due to planned margin 40% decrease of cane sugar sales (-18 ths tn,
Slide 5: Sugar: 9M 2016 key indicators
Sugar Key indicators Actual 9M 2016 vs Actual 9M 2015 (IFRS) Comments Sales (RR +683 million, +3%): Sugar: sales, Adjusted EBITDA and Adjusted EBITDA • Sales of sugar slightly decreased because of 4% decrease in sales volume, that was partly margin compensated by 4% of an increase in sales price. 25
Slide 6: Meat: Q3 2016 key indicators
Meat Key indicators Actual Q3 2016 vs Actual Q3 2015 (IFRS) Comments Meat: sales, Adjusted EBITDA and Adjusted EBITDA 6,000 margin 60% Sales (RR -320 million, -6 %): • sales volume of livestock pigs decreased by 18 ths tn (-53%) from 34 ths tn to 16 ths tn; 4,956 50% • sales volume of processed pork
Slide 7: Meat: 9M 2016 key indicators
Meat Key indicators Actual 9M 2016 vs Actual 9M 2015 (IFRS) Comments Meat: sales, Adjusted EBITDA and Adjusted EBITDA 15,000 margin 60% Sales (RR -939 million, -7 %): 13,432 • sales volume of livestock pigs decreased by 62 ths tn (-56%) from 111 ths tn to 49 ths tn; 48% 12,493 • sales volume of proc
Slide 8: Agriculture: Q3 2016 key indicators
Agriculture Key indicators Actual Q3 2016 vs Actual Q3 2015 (IFRS) Comments Agriculture: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR +664 million, +22%): 4,000 50% The major positive factors are: 3,632 • an increase in sales volume of barley, sugar beet, wheat and soy. 40% The major
Slide 9: Agriculture: 9M 2016 key indicators
Agriculture Key indicators Actual 9M 2016 vs Actual 9M 2015 (IFRS) Comments Agriculture: sales, Adjusted EBITDA and Adjusted 9,000 EBITDA margin 50% 8,179 Sales (RR +2,979 million, +57%): The major positive factors are: • an increase in sales volume of sugar beet, soy, barley, sunflower and corn; 45
Slide 10: Oil & Fats: Q3 2016 key indicators
Oil & Fats Key indicators Actual Q3 2016 vs Actual Q3 2015 (IFRS) Comments Oil & Fats: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR -949 million, -25%: EZHK RR -98 million, -4%; SAPP RR -489 million, 15% -31%; Far East RR -140 million, -30% and Eliminations RR -222 million). 4,500 3,8
Slide 11: Oil & Fats: Q3 volumes and prices
Oil & Fats Key indicators Actual Q3 2016 vs Actual Q3 2015 (IFRS) Comments Oil & Fats Ekaterinburg: volume and prices Sales and prices in Yekaterinburg fat plant (EZHK): • sales volume of mayonnaise increased by 1.9 ths tn (+11%) with 7% increase in price; 20 thousand rubles per ton 20 18 18 19 85 •
Slide 12: Oil & Fats: 9M 2016 key indicators
Oil & Fats Key indicators Actual 9M 2016 vs Actual 9M 2015 (IFRS) Comments Oil & Fats: sales, Adjusted EBITDA and Adjusted EBITDA margin Sales (RR +2,507 million, +21%: EZHK RR +697 million, +11%; SAPP RR +1,656 million, +25%; Far East RR +694 million, +52% and Eliminations RR -540 million). 14,560
Slide 13: Oil & Fats: 9M volumes and prices
Oil & Fats Key indicators Actual 9M 2016 vs Actual 9M 2015 (IFRS) Oil & Fats Ekaterinburg: volume and prices Comments 52 52 50 45 45 77.1 78 Sales and prices in Yekaterinburg fat plant (EZHK): thousand rubles per ton • sales volume of mayonnaise increased by 7.7 ths tn (+17%) with 7% increase in pri
Slide 14: Summary Key Indicators (IFRS)
Section 2 Summary Key Indicators (IFRS) 9M 2016 and Q3 2016 vs 9M 2015 and Q3 2015
Slide 15: Net revenue, Adjusted EBITDA: Q3 2016
Net revenue, Adjusted EBITDA: Actual Q3 2016 vs Actual Q3 2015 Comments Net revenue (IFRS) Actual Q3 2016 vs Actual Q3 2015 19,000 Net Revenue decreased by RR 391 million (-2%): 17,769 (278) 664 (949) • Sugar sales decreased by RR 278 million (-3%) due to a decrease in sales volumes 493 and price. (
Slide 16: Net revenue, Adjusted EBITDA: 9M 2016
Net revenue, Adjusted EBITDA: Actual 9M 2016 vs Actual 9M 2015 Comments Net revenue (IFRS) Actual 9M 2016 vs Actual 9M 2015 60,000 Net Revenue increased by RR 5,230 million (+10%): 2,507 55,588 55,000 • Sugar sales increased by RR 683 million (+3%) thanks to sales price growth and sales 2,979 of ric
Slide 17: Debt profile (as of 30 September 2016)
Debt profile (as of 30 September 2016) Debt position and liquidity management Comments 30 September 31 December Variance • Gross debt decreased by RR 4,801 million (-10%) to RR 45,097 million in RR million 2016 2015 Units % • Net debt decreased by RR 19,803 million to RR -4,657 million. • 68% of tot
Slide 18: Statement of financial position: key changes
Statement of financial position: Key changes 30 September 2016 vs 31 December 2015 Assets as of 30 September 2016 vs 31 December 2015 Comments 155,000 3,283 149,618 ASSETS • PPE & LT biological assets* increased by RR 5,571 million (RR +3,586 million in Agriculture, RR +2,016 million 936 in Sugar, R
Slide 19: Cash Flows: Actual 9M 2016 vs 9M 2015
Cash Flows: Actual 9M 2016 vs Actual 9M 2015 Comments Cash Flows according to Management view (Not IFRS presentation)**RR m illion Actual Actual Variances In 9M 2016 cash and cash equivalents increased by RR 9,168 million from RR 4,402 million to RR 9M 2016 9M 2015 Units % 13,569 million. Cash flow
Slide 20: Additional information
Section 3 Additional information
Slide 21: Statement of Comprehensive income (IFRS)
Statement of Comprehensive income (IFRS) ROS AGRO PLC RR m illion Variances (*) In 2015 full-year financial statements Item Actual 9M 2016 Actual 9M 2015 (*) the Group changed the way of Units % presentation of gain/ loss on initial Sales 55,588 50,358 5,230 10 recognition of agricultural produce an
Slide 22: Adjusted EBITDA 9M 2016 breakdown by divisions
Adjusted EBITDA 9M 2016 (IFRS) Breakdown by divisions ROS AGRO PLC RR m illion 9M 2016 Sugar Meat Agriculture Oil and Fat Other Elim ination Total Sales 23,605 12,493 8,179 14,560 76 (3,325) 55,588 Net gain / (Net loss) on revaluation of biological assets and agricultural produce - 126 4,118 - - (1,
Slide 23: Adjusted EBITDA 9M 2015 breakdown by divisions
Adjusted EBITDA 9M 2015 (IFRS) Breakdown by divisions ROS AGRO PLC RR m illion 9M 2015 Sugar Meat Agriculture Oil and Fat Other Elim ination Total Sales 22,922 13,432 5,199 12,053 28 (3,277) 50,358 Net gain / (Net loss) on revaluation of biological assets and agricultural produce - (31) 3,104 - - (5
Slide 24: Statement of cash flows (IFRS)
Statement of cash flows (IFRS) ROS AGRO PLC RR m illion Actual Actual Variances 9M 2016 9M 2015 Units % Cash flow s from operating activities Profit before incom e tax 11,348 19,459 (8,112) (42) Adjustments for non-cash and non-operating (income)/expenses, net: Depreciation and amortization 3,246 2,
Slide 25: Statement of cash flows (IFRS) - continuance
Statement of cash flows (IFRS) - continuance ROS AGRO PLC RR m illion Actual Actual Variances 9M 2016 9M 2015 Units % Cash flow s from investing activities Purchases of property, plant and equipment (6,417) (9,694) 3,277 34 Purchases of other intangible assets (187) (103) (85) (83) Proceeds from sal
Slide 26: Statement of cash flows according to Management view
Statement of cash flows according to Management view (Not IFRS presentation) ROS AGRO PLC RR m illion Actual Actual Variances 9M 2016 9M 2015 Units % Cash flow s from operating activities Profit before incom e tax 11,348 19,459 (8,112) (42) Adjustments for non-cash and non-operating (income)/expense
Slide 27: Statement of cash flows according to Management view - continuance
Statement of cash flows according to Management view (Not IFRS presentation) – continuance ROS AGRO PLC RR m illion Actual Actual Variances 9M 2016 9M 2015 Units % Cash flow s from investing activities - - Purchases of property, plant and equipment (6,417) (9,694) 3,277 34 Purchases of other intangi
Slide 28: Statement of financial positions (IFRS)
Statement of financial positions (IFRS) ROS AGRO PLC RR m illion 30 September 31 December Variances 2016 2015 Units % ASSETS Current assets Cash and cash equivalents 13,569 4,402 9,168 208 Restricted cash 1 - 1 - Short-term investments 21,020 30,129 (9,109) (30) Trade and other receivables 3,892 3,5
Slide 29: Statement of financial positions (IFRS) - continuance
Statement of financial positions (IFRS) - continuance ROS AGRO PLC RR m illion 30 September 31 December Variances 2016 2015 Units % Liabilities and EQUITY Current liabilities Short-term borrow ings 18,826 25,860 (7,035) (27) Trade and other payables 8,769 3,737 5,032 135 Current income tax payable 2