Mriya Agro Public : Financial Results H2 2015

I I

M'P'I

A r P O X O Jl ,A H H r

H2 2015
EBITDA*, $ thousand	18,253
EBITDA margin, %	28%
Gross margin, %	42%
Total principal amount debt including guarantees, $ thousand	1,133,053

Financial Highlights

*EBITDA before administrative costs relating to debt restructuring

H2 2015
Net cash generated from operating activities	13,581
Net cash used in investing activities	(3,764)
Net cash used in financing activities	(20,103)
Effect of exchange rate fluctuations on cash and cash equivalents	(2,486)
Cash and cash equivalents at 1 July 2015	27,401
Cash and cash equivalents at 31 December 2015	14,629

Cash Flow Highlights, $ thousand Comments P&L Highlights, $ thousand

H2 2015
Revenue	65,816
Costs of sales	(53,465)
Changes in fair value of biological assets	15,356
Gross profit	27,707
Results from operating activities before restructuring costs	18,253
Results from operating activities	13,626
Finance income	50
Finance costs	(257,803)
Income tax benefit	396
Loss for the period	(243,731)
Foreign currency translation differences	82,342
Total comprehensive loss	(161,389)

The 6 months financials are the first comprehensive Mriya financials under the new management, appointed by the creditors when they gained control over the group in January 2015.

Due to the fact that Mriya Agro Holding PLС (the ultimate parent company of the group) is under liquidation, financials are presented under the IFRS 5, which are applicable to companies in liquidation.

The main feature of IFRS 5 is that all items of property, plant and equipment are measured at lower of cost or net realizable value and are not depreciated.

As debt restructuring hasn't been agreed among creditors, financial statements include all debt at nominal value and accruals of all contractual interest, penalties and costs under existing defaulted credit agreements.

Harvested area per crop, kha Sown area per crop as of 31 Dec 2015, kha

Winter wheat Winter rapeseed Soybean Sunflower

Corn

Other

18,9

12,3

18,6

7,8

120,2

20,8

41,8

Winter wheat Winter rapeseed

12,1

73,5

61,4

Comments

In H2 2015, the company harvested crops on 120 kha and subleased 47 kha of land.

Mriya's yields in 2015 suffered from the challenges related to the control takeover and subsequent management challenges. The company's estimates for 2016 yields are low due to late arrival of Working Capital needed for purchase of chemicals and fertilizers.

Crop yield (net), mt/ha

35,0

30,0

25,0

20,0

15,0

10,0

5,0

0,0

Ukraine actual* 2015 yield Mriya actual 2015 yield Mriya forecast 2016 yield

*Source: State Statistics Service of Ukraine

Potatoes Winter wheat

Winter rapeseed

Soybean Sunflower Corn

Sales breakdown per destination Sales per crop, mt

Domestic Export France Thailand Israel Iran Spain

42%

6%

8%

58% 6%

9% 4%

3%

Rapeseed Wheat Sunflower Corn

Soybean

54 395

19 056 5596

312 756

29 532

Lebanon Portugal Indonesia South Korea Pakistan Other

10%

3%

5% 2%2%

Other

38 843

165 334

Comments

In H2 2015, the company exported corn, rapeseed, soybean and wheat with the total volume of 182 kmt, while sunflower seeds, wheat and other small crops were sold domestically with the total volume of 131 kmt. The main export destinations were France, Thailand and Israel.