Industrial Milk : IMC about financial results of 2015 year

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WITH RESPECT TO PEOPLE AND LAND

Kyiv, April 15, 2016

IMC about financial results of 2015 year

IMC has reached its financial forecast for 2015 on Revenue and EBITDA (Revenue at the level of 2014 and EBITDA growth up to 10%). According to the published consolidated financial statements of IMC for 2015 Revenue amounted to $140.4 million (+2% y-o-y), EBITDA amounted to $66.5 million (+16% y-o-y).

Net profit in 2015 amounted to $14.0 million (Net loss of $47.3 million in 2014). A significant decrease of foreign currency exchange loss ($30.0 mln in 2015 compared to $73.5 million in 2014) contributed to the return to net profit in 2015. F/X loss decrease was the result of reducing of the company's debt by $28.7 million (Total debt as of the end of 2015 - $98.7 mln), as well as lower rates of devaluation of the national currency (hryvnia) in 2015.

Net cash flow from operating activities rose by 36.5% to $34.4 million in 2015. Net cash flow from investing activities amounted to $3.0 million in 2015.

96% of revenue ($135.1 mln) was obtained in crop farming (+4% y-o-y), 3.4% of revenue ($4.8 mln) was obtained in dairy farming (-39% y-o-y).

Export revenue in 2015 amounted to 74% of the total revenue of the company.

As of 31.12.2015 IMC revalued its fixed assets to reflect their current market value in the balance sheet of the company (due to the significant devaluation of the national currency in 2014-2015 fixed assets of the company formally devalued in dollar terms). As a result of the revaluation of the company's fixed assets the Equity of IMC in the consolidated balance sheet grew by more than 2-fold vs. 2014 to $60.0 million. It should be noted that the result of the revaluation of fixed assets was affected by the difficult economic and political situation in Ukraine, and in case of its improvement, the real market value of the company's fixed assets will grow.

"IMC has once again proved its ability to plan and achieve planned results, even in such a difficult time for companies doing business in Ukraine. In 2015, we have fully managed our priority to reduce the company's debt, we got excellent operating results in growing of our focus crop - soybean, we have made significant progress in the implementation of the project on the optimization of dairy farming. All these results were reflected in a significant improvement of financial performance of IMC in 2015.

We are also optimistic regarding the current year. Now we have been working on the financial forecast for 2016 and we plan to publish it at the beginning of the third quarter", - noted Alex Lissitsa, CEO of IMC.

For more information about IMC please visit our web-site: www.imcagro.com.ua