ROS AGRO PLC INVESTORS PRESENTATION
ROS AGRO PLC
October 2020
20 November 2018
1
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 presentation (collectively, the "Information"). In accessing the Information, you agree to be bound by the following terms and conditions.
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2
CONTENT
ROS AGRO OVERVIEW…………….…..…..4
ROS AGRO BY SEGMENT….………….…10
ADDITIONAL INFORMATION…………..27
CONTACTS………………………………….….40
3
ROS AGRO OVERVIEW
4
COMPANY OVERVIEW
RUSAGRO IS 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 |
RUB | RUB | |||
Vertically | State-of-the-art | Strong brand | ||
138billion | 20 billion | |||
integrated and | facilities with | portfolio across | ||
diversified | strategically | products and | ||
Adj. EBITDA | operations with | important | price points | |
scale benefits | locations | |||
MARGIN | CAPEX | |||
15% | 17 billionRUB | 4 | 5 | 6 |
EMPLOYEES DIVISIONS
19,700 Five
Favorable Russian | Strong balance sheet | Experienced |
agriculture sector | which enables | management |
fundamentals and | company to make | with proven |
government | acquisitions and | track record |
support | grow |
KEY PERFORMANCE INDICATORS 1
CONSOLIDATED SALES | ADJ. EBITDA & NET PROFIT | LEVERAGE PROFILE | |||||||||||||||||
RUB billion | RUB billion | RUB billion | |||||||||||||||||
+2x | Adj. EBITDA margin | ||||||||||||||||||
34% | 22% | 18% | 19% | 15% | 12% | 17% | |||||||||||||
+67% | 3.36 | 3.08 | |||||||||||||||||
Net profit margin | |||||||||||||||||||
138.2 | 33% | 17% | 7% | 15% | 7% | 4% | 11% | 2.3 | |||||||||||
+9% | -18% | 0.64 | 2.13 | ||||||||||||||||
0.24 | 61.7 | ||||||||||||||||||
0.47 | |||||||||||||||||||
84.3 | +24% | 54.3 | |||||||||||||||||
79.1 | 83.0 | 24.4 | 51.6 | ||||||||||||||||
72.4 | |||||||||||||||||||
65.3 | 71.2 | 23.7 | 18.2 | 16.2 | 20.0 | +56% | 44.2 | ||||||||||||
14.0 | |||||||||||||||||||
13.7 | |||||||||||||||||||
12.8 | 9.7 | 12.1 | |||||||||||||||||
15.6 | |||||||||||||||||||
5.6 | 7.8 | 8.0 | |||||||||||||||||
6.6 | |||||||||||||||||||
2.6 | 4.3 | ||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 6M '19 6M '20 | 2015 | 2016 | 2017 | 2018 | 2019 | 6M '19 | 6M '20 | 2015 | 2016 | 2017 | 2018 | 2019 | 6M '19 6M '20 |
EBITDA adj. | Net profit | Net debt | Net debt/adj. EBITDA (LTM) |
1 in accordance with IFRS financials, FY audited by PwC | 5 |
BUSINESS SEGMENTS
RUSAGRO IS REPRESENTED BY FIVE BUSINESS DIVISIONS WITH TOP POSITIONS AMONG RUSSIAN PRODUCERS AND WELL-RECOGNIZED BRAND PORTFOLIO
BUSINESS SEGMENT | POSITION IN RUSSIA | PRODUCTS | BRANDS | ||||||
sunflower oil | consumer | • | Vegetable oil | ||||||
№1 producer in | №1 margarine | • | Meal | ||||||
Russia | producer in Russia | ||||||||
12% | share in Russian | 50% | share in Russian | • | Industrial fats | ||||
production | production | • | Bottled oil | ||||||
№2 | mayonnaise | №2 | industrial fats | • | Mayonnaise | ||||
producer in | producer in | • | Consumer margarine | ||||||
Russia | Russia | ||||||||
21% | |||||||||
18% | share in Russian | share in Russian | |||||||
production | production | ||||||||
№3
12%
sugar producer | • | Beet sugar |
• | ||
in Russia | Beet pulp | |
share in Russian | • | Betaine |
production |
№4
5%
pork producer | • | Cuts |
in Russia | • | Carcasses |
share in Russian | • | Offal |
production | • | Pigs |
agricultural land | • | Sugar beet |
№3 holder in Russia | • Grains: wheat, barley, corn | |
• | Oil crops: sunflower seeds, soy |
№13
2%
cheese & its | • | Cheese & cheese analogues |
analogues | • | Butter & spread |
production in Russia | • | Cream |
share in Russian | ||
• | Dry mixes | |
production | ||
6
COMPANY BY SEGMENT
IN 2020 OIL&FAT BUSINESS CONTINUED TO GROW ITS SHARE IN RUSAGRO'S SALES AND EBITDA REACHING 46% AND 34% RESPECTIVELY, WHILE MEAT, AGRICULTURE AND SUGAR SEGMENTS SHARING THE REST OF THE RETURNS
SALES STRUCTURE | AVERAGE EMPLOYEE HEADCOUNT | ||||||||||||||||||||||||||
as % of total before intersegment adjustments and excluding other segment | Thousands people | ||||||||||||||||||||||||||
Oil & Fats Segment | Agriculture Segment | Oil & Fats Segment | Agriculture Segment | ||||||||||||||||||||||||
Sugar Segment | Dairy Products Segment | Sugar Segment | Dairy Products Segment | ||||||||||||||||||||||||
Meat Segment | Meat Segment | ||||||||||||||||||||||||||
0% | 0% | 0% | 1% | 3% | 3% | 3% | 3% | 2% | +88% | ||||||||||||||||||
17% | 22% | 21% | 22% | 17% | 14% | 11% | 14% | 13% | +29% | ||||||||||||||||||
20% | 19.7 | ||||||||||||||||||||||||||
21% | 23% | 22% | 19% | ||||||||||||||||||||||||
40% | 34% | 26% | 15.2 | 1.0 | |||||||||||||||||||||||
39% | 19% | 20% | 13.4 | 14.0 | |||||||||||||||||||||||
17% | 17% | 18% | 1.0 | 3.0 | |||||||||||||||||||||||
10.4 | 1.0 | 1.0 | 4.3 | ||||||||||||||||||||||||
24% | 3.1 | ||||||||||||||||||||||||||
22% | 23% | 0.9 | 3.1 | 3.2 | 4.4 | ||||||||||||||||||||||
19% | 2.2 | 4.3 | 4.5 | 5.6 | |||||||||||||||||||||||
43% | 48% | 46% | |||||||||||||||||||||||||
28% | 42% | 43% | 3.4 | 2.0 | 2.0 | 2.0 | |||||||||||||||||||||
21% | 21% | 22% | 1.9 | 5.3 | 5.9 | ||||||||||||||||||||||
3.8 | 4.2 | ||||||||||||||||||||||||||
2.8 | |||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 6M '19 | 6M '20 | 9M '19 | 9M '20 | 2015 | 2016 | 2017 | 2018 | 2019 |
ADJ. EBITDA STRUCTURE | CAPEX | ||||||||||||||||||||||||||
as % of total before intersegment adjustments and excluding other segment | RUB billion | Oil & Fats Segment | Agriculture Segment | ||||||||||||||||||||||||
Oil & Fats Segment | Agriculture Segment | Sugar Segment | Meat Segment | ||||||||||||||||||||||||
Sugar Segment | Dairy Products Segment | ||||||||||||||||||||||||||
Meat Segment | +45% | ||||||||||||||||||||||||||
0% | 1%0 | 0% | 0% | 0% | 17.5 | +7% | |||||||||||||||||||||
16.7 | 16.8 | ||||||||||||||||||||||||||
17% | 15.7 | ||||||||||||||||||||||||||
25% | 32% | 25% | 33% | 37% | 1.0 | 1.6 | 0.5 | ||||||||||||||||||||
1.2 | -25% | ||||||||||||||||||||||||||
50% | 21% | 11.6 | 2.5 | 3.4 | 3.4 | ||||||||||||||||||||||
28% | 21% | 3.1 | |||||||||||||||||||||||||
35% | 0.6 | 2.0 | |||||||||||||||||||||||||
26% | 27% | 5.1 | 2.0 | ||||||||||||||||||||||||
28% | 2.9 | 6.2 | 6.4 | ||||||||||||||||||||||||
4.8 | |||||||||||||||||||||||||||
2.9 | 0.1 | ||||||||||||||||||||||||||
44% | 21% | 10.9 | 0.6 | ||||||||||||||||||||||||
41% | 49% | 25% | 9.4 | 1.7 | |||||||||||||||||||||||
31% | 8.1 | ||||||||||||||||||||||||||
0.9 | |||||||||||||||||||||||||||
34% | 5.2 | 6.3 | 0.8 | ||||||||||||||||||||||||
15% | 20% | 3.8 | 1.2 | ||||||||||||||||||||||||
6% | 5% | 5% | 2.1 | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 6M '19 | 6M '20 | 2015 | 2016 | 2017 | 2018 | 2019 | 6M '19 | 6M '20 | ||||||||||||||
7 |
BUSINESS MODEL
RUSAGRO'S BUSINESS IS BASED ON EFFICIENT AND STABLE CLUSTER-ORIENTED BUSINESS MODEL BENEFITING FROM SCALE, VERTICAL INTEGRATION AND DIVERSIFICATION
MEAT SEGMENT | SUGAR SEGMENT |
8
GEOGRAPHICAL PRESENCE
ASSETS OF THE COMPANY ARE LOCATED IN 14 CONSTITUENT ENTITIES OF THE RUSSIAN FEDERATION WITH SUGAR, MEAT AND AGRICULTURE DIVISIONS PRIMARILY LOCATED IN THE CENTRAL RUSSIA AND OIL&FAT DIVISION - IN URAL
9
ROS AGRO BY SEGMENT
10
MEAT RUSSIAN MARKET OVERVIEW
PORK PRODUCTION | PORK TRADE IN RUSSIA |
Slaughtered weight, million tonnes | Thousand tonnes | ||||||||||||||||||||||
Export | Import | ||||||||||||||||||||||
Per capita consumption, kg | 91 | 106 | |||||||||||||||||||||
23.5 | 23.3 | 25.0 | 26.1 | 26.6 | 68 | ||||||||||||||||||
Sale price, RUB/kg excl. VAT | 17 | 51 | |||||||||||||||||||||
100 | 91 | 93 | 96 | 88 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||
3.3 | 3.5 | 3.7 | 3.9 | 300 | 98 | ||||||||||||||||||
3.1 | 0.6 | 0.5 | |||||||||||||||||||||
0.6 | |||||||||||||||||||||||
0.6 | |||||||||||||||||||||||
0.7 | |||||||||||||||||||||||
2.4 | 2.7 | 2.9 | 3.2 | 3.4 | |||||||||||||||||||
284 | |||||||||||||||||||||||
281 | |||||||||||||||||||||||
440
- In 2019, Russia increased production of pork by 5% to 3.9 million tonnes in slaughtered weight. Output of farms enterprises and private farms continued to drop (-7%y-o-y), while agricultural companies kept expanding (+7%). Hence, all seven key players increased pork production in 2019.
- In 2019, exports of pork products from Russia continued the upward trend and reached 106 ths t (+16%). The main destination was Hong Kong, where 35% of all exported pork was sold. Another import buyers of Russian pork are Ukraine (26%), Belarus (18%) and Vietnam (13%).
- In 2019, pork imports to Russia decreased by 3% (−3 thousand tonnes) to 83 ths t, 52% of which were imported from Brazil, 27% from Chile and 13% from Argentina.
2015 2016 2017 2018 2019
PORK PRODUCERS IN RUSSIA IN 2019 | MONTHLY PORK PRICES IN RUSSIA |
% of pork produced in Russia | Livestock in live weight, RUB/kg excl. VAT | • | ||||||||||||
№ | PRODUCER | 2019 | 2020 | |||||||||||
IN RUSSIA IN 2019 | ||||||||||||||
9.8% | 102 | 101 103 | ||||||||||||
6.3% | Miratorg | 96 | 95 | 96 | ||||||||||
93 | ||||||||||||||
6.1% | Cherkizovo | 88 | 90 | 98 | ||||||||||
87 | • | |||||||||||||
5.6% | Velikoluksky | 82 | 84 | |||||||||||
Ros Agro | 79 | |||||||||||||
61.1% | 5.6% | Agro Group | 75 | 75 | 86 | 85 | 72 | |||||||
Agro-Belogorye | ||||||||||||||
5.5% | 82 | 81 | ||||||||||||
Other | • | |||||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
In 2019, Rusagro produced 243 ths t of pork in live weight (+19%) and secured it's position as fourth largest pork producer in Russia with 5.6% share in total Russian pork production (+0.3 p.p.). The growth was achieved by the launch of new three pig farms and acquisition of KapitalAgro.
In 2019, as a result of growth of domestic pork and poultry supply, the average market price for live pigs went down by 9% and stood at RUB 88/kg, excl. of VAT.
In 2020, average livestock price for 1H reached RUB 81/kg, excl. of VAT, which is 13% lower than in 1H 2019 with RUB 85/kg, excl. of VAT in first half of June. In the second half of the year pork prices showed growth.
Source: Company data, National Union of Pig Breeders, APK-inform, Global monitoring, Federal Customs Service of Russia | 11 |
MEAT SEGMENT OPERATIONAL RESULTS
IN 9M 2020 BOTH LIVESTOCK AND MEAT PRODUCTS SALES VOLUME INCREASED AS A RESULT OF PRODUCTION GROWTH, FACING WITH PRICE IMPROVEMENT IN 3Q 2020
LIVESTOCK SALES
Pigs sales volume, ths t in live weight | Sales price of pigs, RR/kg, excl. of VAT | ||||||||||
100 | 92 | 95 | 86 | 75 | 70.7 | 76.1 | 81.3 | 72.5 | 91.6 | 73.2 -6% 68.6 | |
66.7 | 70.2 | ||||||||||
-77% |
141
-16% | |||||||
76 | +20% | +30% | |||||
57 | +43% |
27 | 33 | ||||||||
10 | 14 | 11 | |||||||
4 | 4 | 5 | 6 | 8 | 8 |
77.6 +1% 78.5
+5%
18 19
In 3Q 2020 volume of pork in live weight sold to third parties decreased by 16% y-o-y and reached 8 ths tonnes. Animals sold to third parties consisted of both culled pigs and pigs of market quality. Price of live pigs rose by 13% to up to 91.6 RR/kg, excl. of VAT.
Given higher y-o-y levels of livestock sales in 1H 2020 (+30%) caused by the launch of 3rd stage on Tambov Bacon in 3Q19 and better productivity, sales volume for 9M 2020 showed rise by 5% y-o-y to up to 19 ths tonnes.
2015 | 2016 | 2017 | 2018 | 2019 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 3Q'20 | 6M '19 | 6M '20 | 9M '19 | 9M '20 |
MEAT PRODUCTS SALES
Cuts, ths t | Price of cuts, RR/kg, excl. of VAT | Average meat products price, |
Carcass, ths t | Price of carcass, RR/kg, excl. of VAT | RR/kg, excl. of VAT |
Other pork cutting products, ths t | Price of other pork cutting products, RR/kg, excl. of VAT | |
Sales volume of meat products in 3Q 2020 in comparison to 3Q 2019 increased by 21% and reached 53 ths
127.9 131.8 132.5 144.6 137.6
127.1 | 125.2 | 124.9 | 135.1 | 131.3 |
147.3 | 149.2 | 151.3 | 165.1 | 157.7 |
50.6 | 51.2 | 51.5 | 56.0 | 49.7 |
+446% | ||||
+25% |
133.0 136.4 145.0 135.2 124.1 129.0 151.2
150.3 | 156.6 | 165.0 | 157.9 | 172.0 | |
142.8 | 145.6 | ||||
131.0 | 141.0 | 136.8 | 147.0 | ||
120.4 | 120.8 | 124.1 | |||
44.2 | 44.1 | 55.0 | 54.5 | 47.8 | 51.9 | 58.0 |
134.8 | -6% | 126.6 | 138.5 | -3% | 134.8 |
153.6 | 157.6 | -3% | 153.6 | ||
144.3 | |||||
136.8 | 122.4 | 136.5 | -4% 130.5 | ||
44.2 | +13% | 49.8 | 47.8 | +10% | 52.5 |
tonnes. All three key meat products categories rose in sales volume and price.
Sales volume of carcass and cuts surged by 38% and 16% to 12 and 34 ths tonnes respectively. Their prices showed growth
169
135 24
113 17 32
80 13 28
6 31
31 | 32 | 89 | 113 | |
1 | 69 | |||
42 | ||||
24 | ||||
6 |
36 | 41 |
5 | 6 |
7 | |
6 | |
25 | 28 |
+21% | ||||
-1% | ||||
43 | 47 | 52 | 53 | 53 |
7 | 7 | 7 | ||
6 | 7 | |||
13 | 11 | 12 | ||
9 | 10 | |||
29 | 30 | 32 | 35 | 34 |
+30% | |||||||
+35% | |||||||
121 | 158 | ||||||
105 | |||||||
78 | 21 | ||||||
1 | |||||||
17 | 36 | ||||||
1 | 2 | ||||||
4 | 22 | ||||||
1 | 4 | ||||||
1 | 10 | ||||||
6 | |||||||
3 | |||||||
5 | 7 | 83 | 1 | ||||
3 | |||||||
by 7% and 4% and reached 147.0 and 172.0 RR/kg, excl. of VAT.
In 9M 2020 meat products sales volume showed y-o-y rise by 30% to up to 158 ths tonnes, which was accompanied by average meat products sale price reduction by 3%.
2015 | 2016 | 2017 | 2018 | 2019 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 3Q'20 | 6M '19 | 6M '20 | 9M '19 | 9M '20 |
12
MEAT SEGMENT FINANCIAL RESULTS
FOLLOWING RISING SALES MEAT DIVISION INCREASED ITS ADJ. EBITDA FOR 6M 2020 BY 36% Y-O-Y
SALES
Billion roubles
+42%
+15% | +23% |
+25% |
In 3Q 2020 in comparison to the same period of 2019 sales of Meat segment increased by 23% to up to RUB 8.8
25.8 | ||||||||||||||||||||
18.1 | 17.9 | 20.5 | 22.4 | +21% | ||||||||||||||||
5.2 | 6.0 | 7.1 | 7.5 | 6.8 | 7.3 | 8.8 | ||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 3Q'20 |
+26% | |
14.1 | |
11.2 | |
6M '19 | 6M '20 |
22.8 | |||||
18.3 | |||||
9M '19 | 9M '20 |
billion. The growth is attributable to the rise both in sales volume of all key product categories and their prices.
In 1H 2020 sales grew by 25% to up to RUB 14.1 billion thanks to higher sales volume of meat products caused by livestock production augment. In 9M 2020 sales increased by 25% to up to RUB 22.8 billion.
ADJ. EBITDA
Billion roubles
Adj. EBITDA margin, %
42 | 22 | 31 | 31 | 19 | 22 | 24 | 19 | 17 | 21 | 18 | 19 | |
13 | ||||||||||||
-36% | ||||||||||||
-30% | ||||||||||||
7.7 | 7.0 | |||||||||||
6.3 | +18% | +36% | ||||||||||
4.9 | ||||||||||||
4.0 | +31% | 2.7 | ||||||||||
2.0 | ||||||||||||
0.7 | 1.3 | 1.6 | 1.3 | 1.2 | 1.5 | |||||||
In 2Q 2020 in comparison to the same period of 2019 adj. EBITDA increased by
18% to up to RUB 1.5 billion mainly due
to organic growth, driven by increased sales volume, compensated by price decrease. Slight decrease in EBITDA margin (from 22 to 21%) due to increased marketing expenses.
In 1H 2020 adj. EBITDA grew by 36% y- o-y to up to RUB 2.7 billion as a result of higher sales. Margin showed positive trend and reached 19%.
2015 | 2016 | 2017 | 2018 | 2019 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 6M '19 | 6M '20 |
13
MEAT SEGMENT STRATEGY
REACHING FULL CAPACITY ON RECENTLY LAUNCHED PIG FARMS AND OPENING THE RUSSIAN FAR EAST PORK CLUSTER WITH FURTHER INCREASE OF PORK PRODUCTS SALES ARE KEY GROWTH TRIGGERS
MID-TERM GOALS | PORK PRODUCTION | PIGS LIVESTOCK |
- TIMELY LAUNCH OF ONGOING EXPANSION PROJECTS;
- SLAUGHTERHOUSE EXPANSION;
- RETAIL SALES DEVELOPMENT;
- INCREASE PRODUCTIVITY GAINS OF LIVE PIGS.
Pork in live weight, thousand tonnes | Thousand pigs | |||||||||||||||||||
Number of animals slaughtered | ||||||||||||||||||||
Number of animals deboned | ||||||||||||||||||||
+30% | 1 809 | |||||||||||||||||||
1 193 1 460 | ||||||||||||||||||||
+19% | ||||||||||||||||||||
+32% | 231 | 843 | 1 485 | |||||||||||||||||
243 | 919 | 1 131 | ||||||||||||||||||
207 | 222 | |||||||||||||||||||
204 | 567 | |||||||||||||||||||
187 | 190 | 169 | 84 | 2 081 | ||||||||||||||||
1 590 | 1 825 | 1 773 | 1 821 | |||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 9M | 9M | 2015 | 2016 | 2017 | 2018 | 2019 |
'19 | '20 |
Launching new projects Rusagro continuously pushed pork production volumes up. With the opening of The Russian Far East Cluster in 2023 (c. 75 ths t) the volumes can reach c. 350 ths t (+44% in comparison with 2019).
In 2019 number of slaughtered pigs augmented by 24 % to 1.8 mn animals and deboned pigs by 31% to 1.5 mn animals. The growth was due to acquired slaughterhouse in Belgorod Region (KapitalAgro) and production efficiency improvement at Tambov Region's site. Rusagro is planning to further drive consumer sales up.
CAPEX PROGRAM | KEY PROJECTS |
Capital investments in Meat Segment, billion RUB
Key ongoing project requiring further financing is the Far East pork cluster to be launched in 2023
Meat processing expansion
Status: launched
Purpose: increase B2C sales
Capacity: +33% deboning capacity
The Far East pork cluster
Status: under construction
Purpose: region diversification, export to Asia
Capacity: 75 thousand tons
8.1
+16%
10.9
9.4
Location: Tambov
Project cost: RUB 2 bn
-45%Launch: 2019Location: Ussuriysk
Project cost: RUB 32 bn
Assets: 6 pig farms, 1 breeding farms,
5.26.3
Full capacity: 2Q 2020
3.8
2.1
1 compound feed mill, 1 slaughterhouse Launch: 2021
Full capacity: mid-2023
2015 | 2016 | 2017 | 2018 | 2019 | 6M '19 | 6M '20 |
14
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 | • In the 2018/2019 season, the production of vegetable | |||||||||||||||||||||||||||||||||||||||||||
Sunflower oil | Soy oil | Other oil | Export | Import | |||||||||||||||||||||||||||||||||||||||||
oil increased by 8% to 6.3 mn t, 80% of which was | |||||||||||||||||||||||||||||||||||||||||||||
3.5 | sunflower oil. As a result of a larger sunflower seeds | ||||||||||||||||||||||||||||||||||||||||||||
3.3 | yield in 2018, sunflower oil production reached 4.9 | ||||||||||||||||||||||||||||||||||||||||||||
6.8 | |||||||||||||||||||||||||||||||||||||||||||||
6.3 | 2.4 | 2.8 | mn t (+9%). Due to high yields results in 2019, | ||||||||||||||||||||||||||||||||||||||||||
5.7 | 5.8 | 0.6 | 2.0 | sunflower oil production can continue to grow. | |||||||||||||||||||||||||||||||||||||||||
4.9 | 0.2 | 0.5 | 0.6 | 0.6 | • | Production rise led in the 2018/2019 season to oil | |||||||||||||||||||||||||||||||||||||||
0.7 | export growth of 17% y-o-y to 3.5 mn t, 64% of which | ||||||||||||||||||||||||||||||||||||||||||||
0.3 | 0.8 | 0.8 | |||||||||||||||||||||||||||||||||||||||||||
was sunflower oil (2,1 mn t) that increased by | |||||||||||||||||||||||||||||||||||||||||||||
0.7 | |||||||||||||||||||||||||||||||||||||||||||||
15%.Key export destinations were Iran (31%), Turkey | |||||||||||||||||||||||||||||||||||||||||||||
4.7 | 4.5 | 4.9 | 5.6 | • | (21%), Egypt (12%) and China (11%). | ||||||||||||||||||||||||||||||||||||||||
3.9 | 15/'16 | 16/'17 | 17/'18 | 18/'19 | 19/'20F | Oil import volumes rose by 19% to 1.4 mn t mainly | |||||||||||||||||||||||||||||||||||||||
0.8 | due to higher palm oil import (+11%), which increased | ||||||||||||||||||||||||||||||||||||||||||||
0.9 | 0.9 | 1.1 | as the result of changes in the formulation standards | ||||||||||||||||||||||||||||||||||||||||||
0.9 | |||||||||||||||||||||||||||||||||||||||||||||
for the production of margarines and fats. Key palm | |||||||||||||||||||||||||||||||||||||||||||||
15/'16 | 16/'17 | 17/'18 | 18/'19 | 19/'20F | |||||||||||||||||||||||||||||||||||||||||
oil importing country is Indonesia (72%). |
CRUDE SUNFLOWER OIL PRICES IN RUSSIA
RUB/kg excl. VAT | • In 2019, the average annual price for crude sunflower | |||
2019 | 2020 | oil in Russia stood at RUB 39.6 ths/t, excl. of VAT, which | ||
is 2% below the level of 2018. The y-o-y decrease was | ||||
64 | due to lower global prices at the end of 2018 as a result |
of high global palm oil stocks. | |
57 | • The average cost of sunflower seeds in Russia in 2019 | |||||||||||
47 | 47 | 48 | 49 | 50 | amounted to RUB 18.0 ths/t, down 3% y-o-y. Seed | |||||||
prices changed following oil prices dynamics and in | ||||||||||||
41 | 41 | 41 | 40 | 40 | 40 | anticipation of gross yield rise in 2019. They ranged | ||||||
38 | 38 | 39 | 39 | 39 | 39 | from RUB 15.8 ths/t to RUB 18.9 ths/t. | ||||||
39 | 39 | 39 | • In 2020, average crude sunflower oil price for 1H | |||||||||
increased by 15% y-o-y and reached c. RUB 44.2 ths/t, | ||||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
excl. of VAT, with RUB 47.5 ths/t in first half of June. | ||||||||||||
Source: Company data, Russian Oil and Fats Union, APK-inform, Federal Custom Service of Russia, Russian Federal Service for Statistics | 15 |
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 sunflower oil produced in Russia | % of industrial fats produced in Russia | |||
№ | PRODUCER | № | PRODUCER | |
IN RUSSIA | IN RUSSIA | |||
IN 2019 | IN 2019 | |||
12% | 25% | |||
Rusagro | ||||
10% | EFKO | 45% | EFKO | |
Yug Rusi | ||||
9% | NMZhK | 9% | Rusagro | |
Blago | ||||
57% | ||||
Others | Kargill | |||
6% | ||||
6% | 21% | Others | ||
- In 2019, Rusagro dramatically increased its production volumes, which led to strengthening of Company's positions across all five oil-and-fat products categories.
- According to estimates based on available data, Rusagro became number one producer of crude sunflower oil and strengthened its position as number one producer of consumer margarine in Russia. It also became number two producer of industrial fats and mayonnaise and also a number five among bottled vegetable oil producers.
BOTTLED VEGETABLE OIL PRODUCERS | CONSUMER MARGARINE PRODUCERS | MAYONNAISE PRODUCERS IN RUSSIA | ||||||
IN RUSSIA IN 2019 | IN RUSSIA IN 2019 | IN 2019 | ||||||
% of vegetable bottled oil produced in Russia | % of consumer margarine produced in Russia | % of mayonnaise produced in Russia | ||||||
№ | PRODUCER | № | PRODUCER | № | PRODUCER | |||
IN RUSSIA | IN RUSSIA | IN RUSSIA | ||||||
IN 2019 | IN 2019 | IN 2019 | ||||||
Yug Rusi | Rusagro | 25% | 18% | Essen | ||||
23% | 27% | Rusagro | ||||||
Blago | ||||||||
EFKO | ||||||||
NMZhK | ||||||||
EFKO | ||||||||
42% | NMZhK | |||||||
Bunge | Yanta | |||||||
50% | 18% | Nefis | ||||||
Rusagro | 11% | |||||||
12% | 4% | Others | Others | |||||
Others | ||||||||
9% | 19% | 13% | 15% | |||||
8% | ||||||||
6% | ||||||||
Source: Rusagro's estimates based on the data of Russian Oil and Fats Union, Federal Custom Service of Russia, AC Nielsen, BusinesStat | 16 |
OIL&FAT SEGMENT OPERATIONAL RESULTS
IN 9M 2020 BOTH B2C AND B2B OIL-AND-FAT PRODUCTS INCREASED IN SALES VOLUME AND ALL EXCEPT MEAL EXPERIENCED HIGHER AVERAGE PRICES
B2C PRODUCTS SALES
Margarine, ths t
Mayonnaise, ths t Bottled oil, ths t
Price of margarine, RR/kg, excl. of VAT
Price of mayonnaise, RR/kg, excl. of VAT
Price of bottled oil, RR/kg, excl. of VAT
91.1 |
In 3Q 2020 sales of consumer oil-and-fat products rose due to the positive price
72.7 76.7 80.5
75.6 | 78.1 |
70.7 | |
71.9 | 58.8 |
61.4 | |
+183% |
83.1 | 80.3 |
81.3 | 80.1 |
55.7 | 53.7 |
81.3 | 80.7 | 80.4 | 80.7 | 80.6 |
79.4 | 80.2 | 79.9 | 79.1 | 80.4 |
54.7 | 52.7 | 54.1 | 53.3 | 54.9 |
86.2 | |
85.4 | 85.6 |
61.6 | 65.4 |
trend in all categories with bottled oil price increasing the most (+21% or 11.3 RR/kg). Meanwhile, rise in revenues was limited by 6% volumes drop.
+87% |
-6%
-11%
In the reporting period sales volume of Oil & Fat segment's B2C products
328 | ||||
45 | ||||
132 | 175 | 136 | ||
116 | 114 | 29 | ||
43 | 37 | 36 | 48 | 147 |
77 | ||||
65 | 59 | 97 | ||
8 | 18 | 20 | ||
2015 | 2016 | 2017 | 2018 | 2019 |
82 | 85 | 100 | 77 | 90 | 80 | |
60 | 14 | |||||
10 | 11 | 10 | 10 | 10 | ||
43 | ||||||
9 | 37 | 37 | 31 | 33 | 38 | |
20 | 36 | 37 | 43 | 36 | 47 | |
31 | 32 | |||||
1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 3Q'20 |
81.0 | 83.3 | 80.8 | 85.9 |
84.0 | |||
79.9 | |||
79.9 | 83.1 | ||
53.8 | 60.6 | ||
58.7 | |||
53.6 | |||
+9% |
+18%
227 | 247 | |||
142 | 167 | 30 | 30 | |
20 | ||||
19 | 93 | 102 | ||
64 | ||||
57 | ||||
67 | 83 | 104 | 115 | |
6M '19 | 6M '20 | 9M '19 | 9M '20 |
reduced to 80 ths tonnes as a result of bottled oil's and margarine's sales
volumes decrease by 14% and 11% respectively, which was partially compensated by mayonnaise's sales augment by 3% to up to 38 ths tonnes.
B2B PRODUCTS SALES
Industrial fats, ths t | Price of industrial fats, RR/kg, excl. of VAT |
Crude oil, ths t | Price of crude oil, RR/kg, excl. of VAT |
Meal, ths t | Price of meal, RR/kg, excl. of VAT |
Revenue from B2B Oil & Fat segment also increased in 3Q 2020 due to prices
43.7 | 53.0 | 42.2 | 48.4 | 53.4 |
44.4 | 45.7 | |||
17.1 | 18.2 | 16.0 | 14.2 | 17.2 |
+338% | ||||
+170% |
1 296
243 | ||||
480 | 406 | |||
296 | 316 | 403 | ||
10 | ||||
- | ||||
- | - | 168 | 647 | |
150 | ||||
100 | 116 | 253 | 302 | |
196 | 200 | |||
2015 | 2016 | 2017 | 2018 | 2019 |
51.3 | 48.9 | 49.0 | 53.1 | 57.2 | 57.1 | |
45.4 | 54.4 | |||||
45.9 | 48.7 | |||||
43.3 | 44.4 | 45.8 | 44.5 | |||
15.8 | 14.1 | 15.1 | 12.2 | 12.4 | 14.5 | 16.3 |
-1%
-10%
306 326 299 365 339 327 296
30 | 62 | 70 | 81 | 77 | 57 | 99 |
107 | ||||||
111 | 96 | 100 | 115 | |||
92 | ||||||
165 | 168 | 178 | 162 | 155 | 71 | |
136 | 126 |
1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20
47.8 | 55.8 | |
49.7 | 54.9 | |
43.8 | 44.4 | 49.1 |
47.4 | ||
15.0 | 14.2 |
14.9 13.4
+3% | ||||||||
+5% | ||||||||
930 | 962 | |||||||
632 | 666 | 162 | 232 | |||||
91 | 134 | 299 | 287 | |||||
207 | 216 | |||||||
333 | 317 | 470 | 443 | |||||
6M '19 | 6M '20 | 9M '19 | 9M '20 |
rise across all categories and surge in industrial fats sales volumes by 41%.
Sales volume of B2B products in 3Q
2020 decreased y-o-y by 1% to up to 296 ths tonnes as a result of crude oil and meal sales volume reduction by 23% (- 21 ths tonnes) and 8% (-10ths tonnes) respectively. This drop was compensated by augment in sales of industrial fats - both volumes (by 41% to up to 99 ths tonnes) and price (by 26% to up to 57.1 RR/kg excl. of VAT).
17
OIL&FAT SEGMENT FINANCIAL RESULTS
SALES VOLUMES GROWTH TRIGGERED SALES AND ADJ. EBITDA INCREASE WITH MARGINS IMPROVING SINCE ALL SOLPRO ASSETS WERE RENTED AND GENERATED EBITDA FOR THE BUSINESS
SALES
Billion roubles
+262% | |||||||||||||
+137% | |||||||||||||
62.4 | +19% | ||||||||||||
+12% | 34.4 | ||||||||||||
28.9 | |||||||||||||
-4% | |||||||||||||
19.9 | 19.4 | 26.3 | |||||||||||
17.3 | 13.4 | 15.5 | 15.6 | 17.8 | 16.1 | 18.3 | 17.5 | ||||||
2015 | 2016 | 2017 | 2018 | 2019 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 3Q'20 | 6M '19 | 6M '20 |
+17% | |
44.6 | 52.0 |
9M '19 | 9M '20 |
In 3Q 2020 in comparison to the same period of 2019 sales of Oil & Fat segment increased by 12% to up to RUB 17.5 billion. Both B2C and B2B sales showed growth (+7% and 22% respectively) with industrial fats experiencing the strongest rise (77%).
In 1H 2020 sales grew by 17% to up to RUB 52.0 billion thanks to higher sales and improved sale prices of consumer oil-and-fat products and industrial fats.
ADJ. EBITDA
Billion roubles | Adj. EBITDA margin, % |
10 | -2 | 4 | 11 | 6 | 2 | 2 | 7 | 11 | 12 | 13 | 2 | 13 |
+120% | ||||||||||||
+971% | ||||||||||||
+27% | ||||||||||||
4.4 | ||||||||||||
3.7 | +2170% | |||||||||||
2.9 | +16% | |||||||||||
1.7 | 2.0 | 2.0 | 2.3 | |||||||||
0.7 | 1.1 | 0.6 | ||||||||||
0.3 | ||||||||||||
0.1 | ||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 6M '19 | 6M '20 |
-0.4 |
In 2Q 2020 in comparison to the same period of 2019 adj. EBITDA increased from 0.1 to up to RUB 2.3 billion due to sales growth by 18% and that in 2020 all SolPro plants are rented by Rusagro and margin is reflected in Rusagro's EBITDA.
In 1H 2020 adj. EBITDA grew by 971% y- o-y to up to RUB 4.4 billion Margin showed positive trend and reached
13%.
18
OIL&FAT SEGMENT STRATEGY
AFTER CAPACITIES EXPANSION THROUGH THE RENT OF SOLPRO ASSETS, RUSAGRO IS AIMED AT INCREASING CAPACITY UTILIZATYION AND SECURING TOP-MARKET POSITIONS
MID-TERM GOALS | RUSAGRO'S PRODUCTION VOLUMES, THOUSAND TONNES |
- STRENGTHEN POSITIONS AMONG LEADING OIL-AND-FAT PRODUCTS PRODUCERS
- MARKET SHARE POSITIONS IMPROVEMENT
- FURTHER INCREASE OUTPUT LEVEL THROUGH RENT OF SOLPRO ASSETS
Meal | Crude oil | Industrial fats | |||||||||||||||||||
+2275% | |||||||||||||||||||||
+115% | |||||||||||||||||||||
1 260 | +4% | ||||||||||||||||||||
285 | |||||||||||||||||||||
624 | 896 | 934 | |||||||||||||||||||
435 | 587 | 439 | 502 | ||||||||||||||||||
360 | |||||||||||||||||||||
320 | 269 | ||||||||||||||||||||
1 | 192 | 636 | |||||||||||||||||||
162 | 457 | 432 | |||||||||||||||||||
157 | 243 | 318 | 3 | 12 | |||||||||||||||||
163 | 198 | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 9M '19 9M '20 | 2017 | 2018 | 2019 |
Bottled oil
Consumer margarine | +103% |
Total
331 | ||||
42 | ||||
163 | 143 | |||
111 | 126 | 112 | 29 | |
37 | ||||
43 | 36 | 101 | ||
12 | 146 | |||
3 | 20 | |||
78 | ||||
65 | 56 | 48 | ||
2015 | 2016 | 2017 | 2018 | 2019 |
CAPEX PROGRAM | CAPACITY EXPANSION |
Capital investments in Oil&Fat Segment, billion RUB
Capacities growth was the result of launched in 2018 line of bottled oil production and the rent of SolPro assets since 3Q19
-55% | |||||||||||||
1.6 | +548% | ||||||||||||
1.0 | 1.2 | ||||||||||||
0.6 | 0.5 | 0.6 | |||||||||||
0.1 | |||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 6M '19 6M '20 |
SUNFLOWER SEEDS | INDUSTRIAL FATS |
PROCESSING CAPACITY | PRODUCTION CAPACITY |
Tonnes/day | Thousand tonnes/year |
4 610 |
182 | ||||||||||||
1 216 | 1 229 | 1 244 | 1 225 | |||||||||
28 | 31 | |||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2017 | 2018 | 2019 |
B2C PRODUCTS
PRODUCTION CAPACITY
Thousand tonnes/year
Total | |
Consumer margarine | |
Bottled oil | 591 |
70 |
394 | ||||
251 | 45 | 260 | ||
224 | 224 | |||
41 | 190 | |||
66 | 66 | |||
67 | ||||
31 | 31 | 261 | ||
143 | 159 | |||
127 | 127 | |||
2015 | 2016 | 2017 | 2018 | 2019 |
Note: production capacity of industrial fats and B2C products includes capacities owned by Rusagro and capacities rented by the Company since 3Q 2019 | 19 |
(only for the half of the year) |
SUGAR RUSSIAN MARKET
HIGH STOCKS LEVEL AND SUGAR OUTPUT IN 2019 DROVE THE PRICES TO ITS HISTORICAL LOWS, WHILE IN 2020 LOWER SUGAR PRODUCTION LEVEL IS EXPECTED WHICH PUSHES THE PRICES UP
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 by 21% y-o-y to 51 mn t. As a result, 46 mn t | ||||||||||||||||||||||||
Sugar content | of beets (+16%) were processed over the calendar year, | |||||||||||||||||||||||||
17.8% | 16.0% | 16.9% | 17.9% | 18.0% | and 50 mn t - during the 2019/2020 season (+30% | |||||||||||||||||||||
season-on-season). Sugar production reached 7.1 mn t | ||||||||||||||||||||||||||
628 | ||||||||||||||||||||||||||
46 | 46 | 580 | (+19% or +1.1 mn t) in 2019. During the 2019/2020 | |||||||||||||||||||||||
45 | 40 | 375 | season, 7.6 mn t of sugar were produced (+29% season- | |||||||||||||||||||||||
on-season). | ||||||||||||||||||||||||||
34 | ||||||||||||||||||||||||||
6.1 | 6.5 | 7.1 | • As a result in 2019 exports grew by 67% (+262 ths t) - | |||||||||||||||||||||||
5.7 | 5.9 | 8 | 101 | up to 628 ths t. The main buyer of Russian sugar was | ||||||||||||||||||||||
Kazakhstan, which imported 36% of the total volume. | ||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | • Meanwhile, sugar imports to Russia decreased by 17% | |||||||||||||||||||||
and reached 253 ths t. Most of the sugar imported into | ||||||||||||||||||||||||||
247 | 253 | Russia (85%) was supplied by Belarus. | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 316 | 304 | ||||||||||||||||||||
352 | ||||||||||||||||||||||||||
SUGAR PRODUCERS IN RUSSIA IN 2019 | SUGAR PRICES IN RUSSIA | |||||||||||||||||||||||||
% of sugar produced in Russia | ISCO-Krasnodar basis, RUB/kg excl. VAT | ||
№ | PRODUCER | 2019 | 2020 |
IN RUSSIA | |||
IN 2019 |
22% | 33 31 31 | 30 | 33 | ||||||
27 | 28 | ||||||||
Prodimex | 25 | ||||||||
24 | |||||||||
40% | Dominant | 2221 | |||||||
19 | 19 | ||||||||
Rusagro | 26 | 17 | |||||||
23 23 23 24 | |||||||||
15% | Agrocomplex | ||||||||
Sucden | 18 18 |
5% | Others |
6% | |
12% |
- In 2019, the annual average price of sugar decreased by 14% y-o-y to RUB 24.8/kg, exclusive of VAT. Downward trend is explained by the high level of sugar stocks and record sugar production volumes in Russia.
- In 2020, average sugar price price for 1H decreased by 27% y-o-y and reached c. RUB 22/kg, excl. of VAT, with RUB 24/kg in first half of June. In June prices started to grow and reached RUB 33/kg in October in anticipation of lower sugar output in the current season and demand growth triggered by the implications of the COVID-19 pandemic.
1 2 3 4 5 6 7 8 9 10 11 12
Source: Soyuzrossakhar, Federal Custom Service of Russia, IKAR | 20 |
SUGAR SEGMENT RESULTS
ADJ. EBITDA FOR 6M 2020 INCREASED DESPITE SALES DROP DUE TO CHEAPER SUGAR BEET USED FOR PRODUCTION OF SOLD SUGAR
SUGAR SALES
Sales volume, ths t | Sales price, RR/kg, excl. of VAT | ||||||||||||||
40.0 | 39.4 | 30.6 | 30.1 | 36.5 | 30.3 | 26.5 | 24.9 | 26.9 | 30.1 | 31.8 | 26.2 | 29.8 | 27.4 | ||
27.5 | 21.9 | ||||||||||||||
+30% | -25% | ||||||||||||||
+46% | +3% | -8% | |||||||||||||
-31% | |||||||||||||||
784 | 866 | 900 | 702 | 1 022 | 348 | 453 | 466 | 727 | 670 | ||||||
274 | 295 | 297 | |||||||||||||
205 | |||||||||||||||
169 | |||||||||||||||
104 | |||||||||||||||
Sugar sales volumes in 3Q 2020 reduced by 25% y-o-y to up to 205 ths tonnes. Due to market expectations of lower sugar production in Russia this year, Rusagro's sugar sales price rose both y-o-
- and q-o-q by 14% and 12% respectively to 30.1 RR/kg, excl. of VAT.
2015 | 2016 | 2017 | 2018 | 2019 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 3Q'20 | 6M '19 | 6M '20 | 9M '19 | 9M '20 |
SALES
Billion roubles
-5% | ||||||||||||||||||||||||||||||
+29% | -10% | -9% | ||||||||||||||||||||||||||||
37.2 | -9% | |||||||||||||||||||||||||||||
32.9 | 31.1 | -25% | ||||||||||||||||||||||||||||
30.3 | 24.1 | 11.1 | 8.0 | 9.0 | 15.7 | 14.3 | 23.2 | 21.1 | ||||||||||||||||||||||
4.5 | 7.6 | 6.8 | ||||||||||||||||||||||||||||
5.2 | ||||||||||||||||||||||||||||||
In 3Q 2020 sales of Sugar segment reduced by 10% y-o-y to up to RUB
6.8 billion. The decrease is attributable to sugar sales volume drop, partially compensated by the price improvement.
2015 | 2016 | 2017 | 2018 | 2019 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 3Q'20 | 6M '19 | 6M '20 | 9M '19 | 9M '20 |
ADJ. EBITDA
Billion roubles | Adj. EBITDA margin, % | |||||||||
34 | 26 | 18 | 20 | 13 | 22 | 18 | 28 | 25 | ||
12 | 19 | 15 | ||||||||
2 | ||||||||||
-64% | +97% | |||||||||
-18% | +54% | |||||||||
+148% | ||||||||||
11.1 | ||||||||||
9.6 | ||||||||||
5.5 | 4.9 | 4.0 | 2.5 | 2.3 | 3.6 | |||||
1.3 | 1.4 | |||||||||
1.0 | 1.0 | |||||||||
0.2 |
In 2Q 2020 in comparison to the same period of 2019 adj. EBITDA increased by 97% to up to RUB 2.5 billion despite sales drop by 19% as sugar beet purchase prices' decrease significantly exceeded sugar sales prices drop.
In 1H 2020 adj. EBITDA grew by 54% y- o-y to up to RUB 3.6 billion Margin showed positive trend and reached
25%.
2015 | 2016 | 2017 | 2018 | 2019 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 6M '19 | 6M '20 |
21
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 LAUNCH OF NEW DESUGARIZATION STATION
- INCREASE SUGAR BEET STORAGE TERM
- INTEGRATION OF THE LEADING TECHNOLOGY SOLUTIONS
The Long-term Storage Programme focuses on testing new ways to extend the processing period of a plant by storing beets for at least 90 days through active ventilation system. To evaluate quality of sugar beet supplied by long-termstorage computer vision module is used.
The Smart Production Programme
aims to reduce the losses on work sites through the automotisation of the production facilities and the use of artificial intelligence.
The Raw Materials Management System focuses on the reduction of losses occurring during storage through automatization of planning based on parameters measured by the thermal monitoring system built on IOT-platform.To evaluate the quality of management of sugar beet reception the Company experiments with measuring sugar beet stocks by UAVs.
CAPEX PROGRAM | SUGAR PRODUCTION |
Capital investments in Sugar Segment, billion RUB
thousand tonnes
Sugar beet processing capacity, ths t/day
Desugarization station
+10%
50.3
53.0
54.0 54.0
Purpose: molasses deep processing for extra-grade sugar production
34.6 | +14% | |||||||||||||
3.4 | 3.1 | 3.4 | 984 | 881 | ||||||||||
2.9 | -45% | 810 | ||||||||||||
2.5 | ||||||||||||||
766 | 773 | |||||||||||||
1.7 | ||||||||||||||
0.9 | ||||||||||||||
Capacity p.a.: 70 ths t of sugar and 20 ths t of betaine
Location: Belgorod region
Project cost: RUB 5.7 bn
Launch: Q4 2019
2015 | 2016 | 2017 | 2018 | 2019 | 6M '19 | 6M '20 | 2015 | 2016 | 2017 | 2018 | 2019 |
Source: Soyuzrossakhar, Federal Custom Service of Russia, IKAR | 22 |
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
№ | LANDHOLDER |
IN RUSSIA | |
In 2019
1,000
865
650 | 649 |
Agrocomplex
Tkachev's
Million tonnes | ||||||||||
Grains | Sugar beet | Oil crops | ||||||||
Gross yield growth (+13%) was | ||||||||||
triggered by both cultivated area | ||||||||||
(+4%) and yields per hectare increase. | ||||||||||
+13% | ||||||||||
182 | ||||||||||
167 | 158 | 179 | ||||||||
144 | 14 | 19 | ||||||||
14 | 17 | |||||||||
12 | 48 | |||||||||
48 | 41 | 51 | ||||||||
39 | ||||||||||
93 | 105 | 120 | 100 | 109 | ||||||
2015 | 2016 | 2017 | 2018 | 2019 |
Million tonnes
Russia mostly exports grains (41 mn t in 2019) with Turkey and Egypt as its main destinations, but also has been gradually increasing oil crops export (1 mn t in 2019). Russia imported only 2 mn t of crops in 2019, mostly oil crops
-8% | ||||
44 | 46 | 42 | ||
31 | 34 | |||
2015 | 2016 | 2017 | 2018 | 2019 |
CROP PRICES IN RUSSIA* | ||||||||||||||||||||||||
GRAINS SALE PRICE | OIL CROPS SALE PRICE | • In 2019, the average annual market prices for grain crops in | ||||||||||||||||||||||
RUB/kg excl. VAT | 2020 | 2019 | RUB/kg excl. VAT | 2019 | 2018 | Russia went up by 7%, whereas those for oil crops went down | ||||||||||||||||||
by 17% y-o-y. | ||||||||||||||||||||||||
14 | 25 | 25 | • Domestic wheat prices increased to RUB 10.8 ths/t (+10%) due | |||||||||||||||||||||
14 | to growing demand for cereal grain and animal feeding grain. | |||||||||||||||||||||||
13 | 24 | 24 | 24 | 24 | ||||||||||||||||||||
13 | 13 | Maize prices grew by 9% due to higher output of maize | ||||||||||||||||||||||
12 | 12 | 23 | 23 | 23 | 22 | 23 | ||||||||||||||||||
22 | 22 | processed into to alcohol, starch, and malt. | ||||||||||||||||||||||
11 | 22 | 21 | ||||||||||||||||||||||
11 | 12 | 13 | 13 | 10 | 10 | 11 | 20 | 21 | 22 | 21 | • As a result of high yield, the prices for sunflower seeds and | |||||||||||||
12 | 9 | 10 | 19 | 20 | 19 | |||||||||||||||||||
19 | soybeans fell by 13 and 22% to RUB 22.3 ths and RUB 17.3 | |||||||||||||||||||||||
ths/t, respectively. | ||||||||||||||||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | • In 2020, average grain price for 1H remained at the level close |
to 1H 2019 -RUB 12.7/kg in 2020 vs. RUB 12.6/kg in 2019. | ||||||||||||||||||||||||
Source: APK-Inform | 23 |
* Grain prices are calculated as an average of 3rd, 4th wheat and forage wheat. Oil crops prices are calculated as an average of sunflower seeds and |
soybeans EXW Central Russian Federal District, and soybeans EXW Far East Federal Districts.
AGRICULTURE SEGMENT OPERATIONAL RESULTS
GRAIN CROPS SALES
Corn, ths t | Price of corn, RR/kg, excl. of VAT | |||||||||||||||
Barley, ths t | Price of barley, RR/kg, excl. of VAT | |||||||||||||||
Wheat, ths t | 12.6 | Price of wheat, RR/kg, excl. of VAT | 15.0 | |||||||||||||
13.9 | ||||||||||||||||
13.0 | 14.6 | |||||||||||||||
10.1 | 12.8 | 12.9 | 12.9 | |||||||||||||
8.7 | 10.4 | 12.2 | 14.8 | |||||||||||||
8.1 | 7.9 | 9.7 | 12.7 | 11.6 | 11.7 | 12.8 | 12.6 | 11.6 | ||||||||
8.6 | 10.9 | |||||||||||||||
10.2 | 12.6 | 11.0 | ||||||||||||||
7.6 | 7.4 | 6.2 | 8.9 | 9.5 | 12.6 | 11.2 | ||||||||||
6.1 | 11.5 | 9.5 | ||||||||||||||
7.2 | 11.0 | 10.3 | 9.8 | |||||||||||||
10.1 | 9.9 | 11.2 | ||||||||||||||
+88% | 9.5 | 9.8 | ||||||||||||||
8.8 | 8.6 | |||||||||||||||
+64% | -47% | |||||||||||||||
1 264 | -61% | |||||||||||||||
-28% | 859 | |||||||||||||||
1 007 | 156 | 508 | ||||||||||||||
881 | +106% | 137 | ||||||||||||||
105 | 771 | 278 | 406 | |||||||||||||
672 | 91 | 351 | 452 | |||||||||||||
193 | 109 | 314 | 19 | 252 | 125 | 248 | ||||||||||
77 | ||||||||||||||||
377 | 152 | 194 | 12 | 30 | 199 | 92 | ||||||||||
85 | ||||||||||||||||
310 | 831 | 127 | 123 | 26 | 2 | 92 | ||||||||||
710 | 49 | 40 | 357 | 77 | 41 | |||||||||||
510 | 59 | 2 | 67 | |||||||||||||
285 | 413 | 179 | 72 | 212 | 8 | 186 | 1 | 474 | ||||||||
83 | 23 | 28 | 51 | 268 | ||||||||||||
46 | 36 | 6 | 82 | |||||||||||||
2015 | 2015 | 2017 | 2018 | 2019 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 3Q'20 | 6M2'19 | 6M '20 | 9M '19 | 9M '20 |
In 3Q 2020 sales volume of grains dropped by 28% to up to 252 ths tonnes, which was partially compensated by price rise across all grain crops sold by Rusagro.
Sales volume of wheat and barley dropped by 12% and 68% to up to 186 and 41 ths tonnes respectively, while corn increased in sales volume by 122% and reached 26 ths tonnes.
Sale price of wheat, barley and corn experienced positive trend. Wheat price grew the most - it increased by 33% y-o-y to up to 11.7 RR/kg, excl. of VAT.
OIL CROP SALES
Sunflower seeds, ths t | Price of sunflower seeds, RR/kg, excl. of VAT | |||||||||||
Soy, ths t | Price of soy, RR/kg, excl. of VAT | |||||||||||
28.6 | ||||||||||||
23.3 | 23.5 | 24.9 | 26.9 | 25.5 | 26.3 | |||||||
22.8 | ||||||||||||
21.2 | 20.0 | 20.5 | 19.2 | 19.2 | 22.0 | 25.9 | 20.3 | 20.0 | ||||
21.7 | ||||||||||||
21.1 | 19.9 | 22.8 | 18.8 | 20.1 | 20.2 | |||||||
18.6 | 17.1 | 17.3 | 18.7 | 18.8 | 17.0 | 18.5 | ||||||
17.2 | ||||||||||||
+796% | ||||||||||||||||||||||||||
+37% | ||||||||||||||||||||||||||
+21% | +43% | |||||||||||||||||||||||||
252 | ||||||||||||||||||||||||||
305 | ||||||||||||||||||||||||||
232 | 253 | 197 | 184 | 18 | ||||||||||||||||||||||
80 | +19% | |||||||||||||||||||||||||
18 | ||||||||||||||||||||||||||
50 | 84 | 138 | 10 | |||||||||||||||||||||||
144 | -5% | |||||||||||||||||||||||||
138 | 8 | |||||||||||||||||||||||||
121 | ||||||||||||||||||||||||||
54 | 225 | 99 | 17 | 58 | 234 | |||||||||||||||||||||
34 | 182 | 169 | 39 | 8 | 46 | 70 | 56 | 179 | 174 | |||||||||||||||||
121 | 130 | |||||||||||||||||||||||||
91 | 0 | 91 | 2 | 1 | 0 | |||||||||||||||||||||
22 | 51 | 57 | 55 | |||||||||||||||||||||||
38 | 45 | |||||||||||||||||||||||||
12 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 3Q'20 | 6M '19 | 6M '20 | 9M '19 | 9M '20 | |||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 |
Sales volume of oil crops in 3Q 2020 experienced growth by 19% from 46 to 56 ths tonnes due to the rise of soy sales volume by 23%.
Price of both crops - soy and sunflower
- surged by 49% and 52% respectively to 28.6 and 25.9 RR/kg, excl. of VAT.
SUGAR BEET SALES
Sales volume of sugar beet in 3Q 2020 reached 769 ths tonnes, which is 19% less than in 3Q 2019. Sales price
augmented to 3.2 RR/kg, excl. of VAT (+79% y-o-y).
24
AGRICULTURE SEGMENT FINANCIAL RESULTS
SALES AND ADJ. EBITDA DECREASED IN 6M 2020 AS A RESULT OF LOWER SALES VOLUMES IN COMPARISON TO 1H 2019, WHEN SALES VOLUME WERE HIGH DUE TO HIGH YEAR-END STOCKS
SALES
Billion roubles | |||||||||||||||
+85% | |||||||||||||||
+24% | |||||||||||||||
25.8 | |||||||||||||||
21.2 | 18.8 | 20.8 | -16% | -2% | |||||||||||
+20% | |||||||||||||||
15.0 | |||||||||||||||
14.2 | 14.8 | ||||||||||||||
+118% | 9.2 | ||||||||||||||
10.8 | 7.7 | ||||||||||||||
5.4 | 3.8 | 5.9 | 4.4 | 7.1 | |||||||||||
3.2 | |||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 3Q'20 | 6M '19 | 6M '20 | 9M '19 | 9M '20 |
In 3Q 2020 in comparison to the same period of 2019 sales of Agriculture segment jumped by 20% to up to RUB 7.1 billion due to surge in sales prices of both grain and oil crops.
In 1H 2020 sales decreased by 16% to up to RUB 7.7 billion due to lower sales volumes of wheat, barley and corn and lower sales prices of wheat and barley.
ADJ. EBITDA
Billion roubles | Adj. EBITDA margin, % | |||||||||||
47 | 29 | 24 | 24 | 35 | 30 | |||||||
0 | 26 | 25 | 24 | 30 | ||||||||
18 | 27 | |||||||||||
-8% | ||||||||||||
+23% | ||||||||||||
6.6 | 6.2 | 6.1 | -23% | |||||||||
5.0 | 2.7 | |||||||||||
-40% | 2.1 | |||||||||||
-40% | ||||||||||||
1.4 | 1.3 | 1.4 | 1.9 | 1.3 | ||||||||
0.8 | ||||||||||||
0.1 | ||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19 | 1Q'20 | 2Q'20 | 6M '19 | 6M '20 |
In 2Q 2020 in comparison to the same period of 2019 adj. EBITDA dropped by 40% to up to RUB 0.8 billion. Decrease in EBITDA was the result of lower sales of wheat, barley and soybean in 2Q20 vs 2Q19, which is attributed to lower level of crops in stock at the end of 2019 compared to 2018
In 1H 2020 adj. EBITDA reduced by 23% y-o-y to up to RUB 2.1 billion. Margin showed drop from 30% to
25%.
25
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 |
- OPTIMISATION OF THE LAND BABK
- IMPROVED FIELD CONTROL THROUGH AUTOMATISATION
- INCREASE OF THE YEILDS PER HECTARE AND HARVEST QUALITY
Sugar Beet Genetic Selection Centre launched in 2017 in partnership with Shelkovo Agrochem was officially opened in 2019. It focuses on creating new sugar beet hybrids with disease resistance and improved yields. The first hybrids were registered in 2019, and their sales are scheduled for 2020.
In order to digitalise the strategic planning process, an algorithm for integrated business planning and simulation is being under development to determine the optimal crop rotation based on the individual characteristics of fields and crops.
The following key projects are also under implementation:
- Automated recording of the harvesting jobs with wireless identification of vehicles;
- Design of optimal schedule of sugar beet digging, piling, and delivery;
- Differential application of crop-protecting agents and fertilisers.
CAPEX PROGRAM | LAND BANK |
Capital investments in Agri Segment, billion RUB
6.2 | ||||
5.1 | ||||
+3% | ||||
2.9 | ||||
+41% | ||||
thousand hectares
Arable land | Other land | • To optimize the land bank Rusagro did not prolong | ||||||
lease contracts for ineffective land, withdrew grazing | ||||||||
Cultivated land area, ths ha | ||||||||
land, sold low-productive land, and adjusted field | ||||||||
595 | ||||||||
boundaries. At the end of 2019, land bank dropped by | ||||||||
564 | 567 | 562 | ||||||
2% and arable land area - by 3%. However, cultivated | ||||||||
410 | -2% | land rose by 5% due to the lease of 46 ths ha in the | ||||||
Saratov Region from February to November. | ||||||||
665 | 675 | |||||||
652 | 641 | |||||||
• In 2019 c. RUB 1 bn was invested in land acquisition | ||||||||
2.0 2.0
0.8
1.2
504 | 114 | 108 | 70 | 78 | (incl. of rented lands - the share of owned land rose |
by 3 p.p. to 54%) and equipment purchase. | |||||
94 | 551 | 567 | 582 | 562 | • In 2019, Rusagro achieved 15% growth of sugar beet |
410 | |||||
yields per ha to 45 t/ha. | |||||
2015 | 2016 | 2017 | 2018 | 2019 | 6M '19 | 6M '20 |
2015 | 2016 | 2017 | 2018 | 2019 |
26
ADDITIONAL INFORMATION
27
NET REVENUE, ADJUSTED EBITDA: 2Q 2020 VS 2Q 2019
COMMENTS
Net Revenue increased by RR 952 million (+3%):
- Revenue of Sugar segment decreased by RR 2,121 million (- 19%) due to volume reduction and price drop
- Revenue of Meat segment growth by 1,287 million (+22%) is attributed to the increase in meat products sales volume, which was partially offset by the price drop
- Agriculture sales decreased by RR 1,036 million (-24%) as a result of high sales volume in 1H 2019, when Rusagro transferred part of the volumes from 4Q 2018.
- Oil & Fats sales increased by RR 2,778 million (+18%) due to rise in prices across all key product categories and sales volume growth of bulk and bottled oil
- Revenue of Dairy products segment decreased by RR 140 million (-15%) due to higher sales volume of cheaper products
Adjusted EBITDA margin increased from 10% in Q2 2019 to 18% in Q2 2020
Adjusted EBITDA increased by RR 3,138 million or 82%
NET REVENUE (IFRS) AND ADJ. EBITDA
Net revenue (IFRS) Q2 2020 vs Q2 2019
2 778 | 184 | 38 302 | |||||||||||||||||||||
38 000 | 37 350 | (140) | |||||||||||||||||||||
million | 1 287 | ||||||||||||||||||||||
RR | 36 000 | ||||||||||||||||||||||
(2 121) | (1 036) | +3% | |||||||||||||||||||||
(RR 952 million) | |||||||||||||||||||||||
34 000 | |||||||||||||||||||||||
Revenue Sugar | Meat Agriculture Oil&Fats | Milk | Eliminations | Revenue | |||||||||||||||||||
Q2 2019 | products | & other | Q2 2020 |
Adjusted EBITDA Q2 2020 vs Q2 2019
8 000 | 2 235 | 6 963 | 23% | ||||||||||||||||
(23) | |||||||||||||||||||
millionRR | (322) | marginEBITDA | |||||||||||||||||
6 000 | 1 250 | 236 | |||||||||||||||||
(238) | 18% | ||||||||||||||||||
4 000 | 3 825 | +82% | |||||||||||||||||
10% | (RR +3,138 million) | ||||||||||||||||||
2 000 | 8% | ||||||||||||||||||
Meat | Oil&Fats | ||||||||||||||||||
EBITDA Q2 | 2019 | Eliminations & other |
28
NET REVENUE, ADJUSTED EBITDA: 6M 2020 vs 6M 2019
COMMENTS
Net Revenue increased by RR 5,916 million (9%):
- Sugar sales decreased by RR 1,405 million (-9%) due to sale price drop, compensated by sales volumes increase
- Meat sales increased by RR 2,910 million (+26%) due to an increase in sales volume of processed pork as a result of launch of 3rd stage on Tambov Bacon
- Agriculture sales decreased by RR 1,487 million (-16%) due to lower sales volumes of wheat, barley and corn and lower sales prices of wheat and barley, compensated by growth in sales volume and prices of soybean
- Oil & Fats sales increased by RR 5,503 million (+19%) due to increase of sales volume and prices across all products except for meal
- Dairy products sales reached RR 1,819 million in 6M 2020
Adjusted EBITDA margin increased from 12% in 6M 2019 to 17% in 6M 2020
Adjusted EBITDA increased by RR 4,344 million or 56%
NET REVENUE (IFRS) AND ADJ. EBITDA
Net revenue (IFRS) Actual 6M 2020 vs Actual 6M 2019
72 000 | 5 503 | 408 | 71 236 | ||||||||||||||||||||||||||
69 000 | (13) | ||||||||||||||||||||||||||||
million | |||||||||||||||||||||||||||||
2 910 | |||||||||||||||||||||||||||||
RR | 66 000 | 65 320 | |||||||||||||||||||||||||||
(1 487) | |||||||||||||||||||||||||||||
63 000 | (1 405) | +9% | |||||||||||||||||||||||||||
(RR 5,916 million) | |||||||||||||||||||||||||||||
60 000 | |||||||||||||||||||||||||||||
Revenue | Sugar | Meat Agriculture Oil&Fats | Dairy | Eliminations | Revenue | ||||||||||||||||||||||||
6M 2019 | products | & other | 6M 2020 |
Adjusted EBITDA Actual 6M 2020 vs Actual 6M 2019
15 000 | 3 944 | 30% | |||||||||
12 125 | |||||||||||
12 000 | (19) | (1 057) | EBITDA margin | ||||||||
717 | |||||||||||
1 252 | 20% | ||||||||||
RR million | 9 000 | ||||||||||
7 781 | (493) | ||||||||||
6 000 | 17% | ||||||||||
+56% | 10% | ||||||||||
12% | |||||||||||
(RR 4,344 million) | |||||||||||
3 000 | |||||||||||
0 | EBITDA 6M | Sugar | Meat | Agriculture | Oil&Fats | Dairy | Eliminations EBITDA 6M | 0% | |||
2019 | products | & other | 2020 | ||||||||
29 |
STATEMENT OF COMPREHENSIVE INCOME (IFRS) ROS AGRO PLC
RR million | |||||||||||||
Description | Actual 6M 2020 | Actual 6M 2019 | Varianсes | Q2 2020 | Q2 2019 | Varianсes | |||||||
Units | % | Units | % | ||||||||||
Sales | 71,236 | 65,320 | 5,916 | 9 | 38,302 | 37,349 | 953 | 3 | |||||
Net gain / (loss) on revaluation of biological assets and | (381) | (3,911) | 3,530 | 90 | (467) | (1,952) | 1,485 | 76 | |||||
agricultural produce | |||||||||||||
Cost of sales | (55,449) | (52,261) | (3,188) | (6) | (29,595) | (30,717) | 1,122 | 4 | |||||
Net gain / (loss) from trading derivatives | 11 | (6) | 16 | 281 | 11 | (3) | 13 | 519 | |||||
Gross profit | 15,416 | 9,143 | 6,273 | 69 | 8,251 | 4,677 | 3,573 | 76 | |||||
Distribution and selling expenses | (4,316) | (4,918) | 603 | 12 | (2,213) | (2,599) | 387 | 15 | |||||
General and administrative expenses | (3,682) | (3,456) | (226) | (7) | (1,673) | (1,577) | (96) | (6) | |||||
Other operating income/(expenses), net | (173) | (376) | 203 | 54 | (84) | (344) | 260 | 76 | |||||
Other non-operating income/(expenses), net | 1,617 | 1,059 | 557 | 53 | 827 | 992 | (165) | (17) | |||||
Operating profit / (loss) | 8,862 | 1,452 | 7,410 | 510 | 5,108 | 1,149 | 3,959 | 345 | |||||
Interest expense | (2,582) | (2,701) | 119 | 4 | (1,235) | (1,134) | (101) | (9) | |||||
Interest income | 3,572 | 3,996 | (424) | (11) | 1,801 | 993 | 809 | 81 | |||||
Net gain / (loss) from bonds held for trading | (17) | (23) | 6 | 24 | (16) | (19) | 3 | 15 | |||||
Other financial income/ (expenses), net | (1,351) | (82) | (1,269) | (1,546) | (211) | 113 | (324) | (287) | |||||
Share of results of associates | - | - | - | - | - | - | - | - | |||||
Profit / (loss) before taxation | 8,483 | 2,643 | 5,841 | 221 | 5,447 | 1,102 | 4,346 | 394 | |||||
Income tax expense | (483) | (75) | (408) | (546) | (645) | (186) | (459) | (246) | |||||
Profit / (loss) for the period | 8,000 | 2,568 | 5,432 | 212 | 4,802 | 915 | 3,887 | 425 | |||||
Change in value of available-for-sale financial assets | - | - | - | - | - | - | - | - | |||||
Net change in fair value of available-for-sale financial assets | - | - | - | - | - | - | - | - | |||||
transferred to profit or loss | |||||||||||||
Income tax relating to other comprehensive income | - | - | - | - | - | - | - | - | |||||
Income tax relating to other comprehensive income | - | - | - | - | - | - | - | - | |||||
transferred to profit or loss | |||||||||||||
Total comprehensive income / (loss) for the period | 8,000 | 2,568 | 5,432 | 212 | 4,802 | 915 | 3,887 | 425 | |||||
Profit / (loss) is attributable to: | |||||||||||||
Owners of ROS AGRO PLC | 8,035 | 2,590 | 5,444 | 210 | 4,810 | 1,614 | 3,196 | 198 | |||||
Non-controlling interest | (35) | (23) | (12) | (54) | (8) | (14) | 6 | 43 | |||||
Profit / (loss) for the period | 8,000 | 2,568 | 5,432 | 212 | 4,802 | 1,601 | 3,202 | 200 | |||||
Total comprehensive income / (loss) is attributable to: | |||||||||||||
Owners of ROS AGRO PLC | 8,035 | 2,590 | 5,444 | 210 | 4,810 | 929 | 3,881 | 418 | |||||
Non-controlling interest | (35) | (23) | (12) | (54) | (8) | (14) | 6 | 43 | |||||
Total comprehensive income / (loss) for the period | 8,000 | 2,568 | 5,432 | 212 | 4,802 | 915 | 3,887 | 425 |
30
DEBT PROFILE (AS OF 30 2020)
COMMENTS | DEBT POSITION, LIQUIDITY MANAGEMENT AND FINANCE INCOME |
Gross debt decreased by RR 9,067 million (-9%) up to RR 88,809 million
- Net debt decreased by RR 10,120 million (-16%) to RR 51,620 million as a result of repayment of loans and borrowings received by Ros Agro China Limited - RR 4,507, Limeniko Trade and Invest Limited - RR 3,472 mln, LLC Tambovsky Bacon - RR 1,065 mln and as a result of increase in cash balances and short-term bank deposits
- Major banks and their ratio in the Group's credit portfolio (excl. non-bank loans): Alfa bank (41%), Rosselhozbank (24%), Vnesheconombank (16%), Gazprombank (11%), Sberbank (5%). The shares are calculated taken into account the fair value adjustments made according to IFRS requirements for the purpose of financial statements
Net finance income in 6M19 in the amount of RR 1,190 million decreased to net finance expense in amount of RR 379 million in the 6M20 (RR 1,569 million decrease) due to:
-
RR -1,226 million of negative dynamics in forex losses in 6M20 vs. 6M19, which were compensated by export foreign currency revenue growth (reflected above
EBITDA) - RR - 421 million of decrease in interest income as a result of accrual of interest on rights to claims SolPro entities and interest receivable on bonds
- RR +134 million of savings in net interest expense as a result of lower average interest rates
Net debt / LTM EBITDA
4.0х | 3.36 | ||||||||
3.5х | |||||||||
3.08 | |||||||||
3.0х | 2.73 | ||||||||
2.5х | 2.15 | 2.13 | |||||||
2.0х | |||||||||
1.5х | |||||||||
1.0х | 0.64 | 0.47 | |||||||
0.5х | 0.20 | 0.24 | |||||||
0.0х | 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Mar | 30 Jun |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2020 |
Debt position and liquidity management
tda | 30 June 2020 | 31 December 2019 | Variance | ||
Units | % | ||||
Gross debt | 88 809 | 97 876 | (9 067) | (9) | |
Short-term borrowings | 25 102 | 31 835 | (6 733) | (21) | |
Long-term borrowings | 63 707 | 66 041 | (2 334) | (4) | |
Cash and cash equivalents, bank deposits | (37 189) | (36 136) | (1 053) | (3) | |
and bonds | |||||
Short-term cash, deposits and bonds | (3 225) | (2 171) | (1 054) | (49) | |
Long-term cash, deposits and bonds | (33 964) | (33 965) | 1 | 0 | |
Net debt | 51 620 | 61 740 | (10 120) | (16) | |
Short-term borrowings, net | 21 877 | 29 664 | (7 787) | (26) | |
Long-term borrowings, net | 29 743 | 32 076 | (2 333) | (7) | |
Adjusted EBITDA (LTM) | 23 793 | 19 448 | 4 345 | 22 | |
Net debt/ Adjusted EBITDA (LTM) | 2.17 | 3.17 | (1.0) | ||
Adjusted EBITDA (LTM)* w ithout other | 24 186 | 20 045 | 4 141 | 21 | |
operating income/expenses | |||||
Net debt/ Adjusted EBITDA (LTM)* w ithout | 2.13 | 3.08 | (0.9) | ||
other operating income/expenses | |||||
Net finance income/ (expense)
Variance | Three months | Variance | ||||||
ended | ||||||||
in RR million | 6M 2020 | 6M 2019 | ||||||
Units | % | 30 June | 30 June | Units | % | |||
2020 | 2019 | |||||||
Net interest expense | (2,582) | (2,701) | 119 | 4 | (1,235) | (1,134) | (101) | (9) |
Gross interest expense | (3,357) | (3,341) | (15) | (0) | (1,655) | (1,531) | (124) | (8) |
Reimbursement of interest expense | 775 | 640 | 134 | 21 | 420 | 397 | 23 | 6 |
Interest income | 3,572 | 3,996 | (424) | (11) | 1,801 | 993 | 809 | 81 |
Net gain / (loss) from bonds held for | (17) | (23) | 6 | 24 | (16) | (19) | 3 | 15 |
trading | ||||||||
Other financial income / (expenses), net | (1,351) | (82) | (1,269) | (1,546) | (211) | 113 | (324) | - |
Net foreign exchange gain / (loss) | (1,215) | 11 | (1,226) | - | (138) | 69 | (207) | - |
Other financial income / (expenses), net | (137) | (93) | (43) | (47) | (73) | 44 | (117) | - |
Total net finance income / (expenses) | (379) | 1,190 | (1,569) | - | 339 | (47) | 386 | - |
31
STATEMENT OF FINANCIAL POSITION:
KEY CHANGES 30 JUNE 2020 VS 31 DECEMBER 2019
COMMENTS
ASSETS
- PPE & LT biological assets* increased by RR 762 million (RR +1,236 million in Meat, RR -622 million in Sugar, RR -190 million in Agriculture, RR +334 million in Oil & Fats and RR +29 million in Other). Increase is represented by large construction projects in Meat (Far East).
- Cash & Investments** increased by RR 1,003 million. For cash flow details please refer to the next slide.
- Inventories & ST biological assets decreased by RR 4,363 million (RR -5,626 million in Sugar, RR -3,246 million in Oil & Fats, RR -804 million in Meat, RR +4,637 million in Agriculture). Decrease of balance in Sugar division is resulted by sales of sugar in stock accumulated as at 31 December 2019. Inventory level in Oil & Fats decreased mainly due to sunflower seeds used in the production. Inventories in Meat division decreased by RR 2,172 million as fodder collected in the previous period was used in the production process, and short-term biological assets are higher by RR 1,368 million mainly as a result of an increase in production volume and the market price of livestock. Significant increase of inventories in Agricultural division includes decrease in the balance of finished produce as last year crops were sold during 1H20 and higher value of biological assets represented by the current year harvest being grown.
- Receivables & Prepayments decreased by RR 1,495 million mainly as a result of settlement of trade receivables in Agricultural division.
- Taxes decreased by RR 61 million as a result of lower VAT receivables by RR 968 million (RR - 900 million in Sugar, RR -574 million in Meat, RR -194 million in Oil & Fats and RR +594 million in Agriculture) and higher deferred income tax assets by RR 758 million.
LIABILITIES & EQUITY
- Equity (excl. RE) is lower by RR 38 million as the result of NCI.
- Borrowings decreased by RR 9,067 million incl. RR -6,733 million of ST borrowings and RR - 2,334 million of LT borrowings for details please see Net Debt slide
- Payables are lower by RR 113 million (RR +1,445 million in Agricultural division, RR -262 million in Sugar, RR -121 million in Meat and RR -1,176 million in Oil & Fats). An increase in payables in Agricultural division is attributed to purchases fertilizers and crop protection agents.
- Right of use Liability decreased by RR 111 million (RR +362 million in Other and RR -466 million in Agriculture).
- Taxes increased by RR 281 million mainly as a result of CIT increase by RR 165 million, VAT payable decrease by RR 723 million and deferred tax liability increase by RR 777 million.
ASSETS AND LIABILITES & EQUITITY
Assets as of 30 June 2020 vs 31 December 2019
245 000 | 762 | 1 003 | |||||||||||||||||||||
239 495 | |||||||||||||||||||||||
-2% | |||||||||||||||||||||||
million | |||||||||||||||||||||||
(RR -4,192 million) | |||||||||||||||||||||||
RR | (4 363) | 235 303 | |||||||||||||||||||||
(1 495) | (61) | (16) | (21) | ||||||||||||||||||||
230 000 | |||||||||||||||||||||||
Assets 31 | PPE & LT | Cash & | Inventories & Receivables & | Taxes | Intangible | RouA | Assets 30 | ||||||||||||||||
December | biological | investments | ST biological prepayments | assets | June 2020 | ||||||||||||||||||
2019 | assets | assets |
Liabilities & Equity as of 30 June 2020 vs 31 December 2019
245 000 | 239 495 | (38) | 4 821 | -2% | |||||||||||||||||||
(RR -4,192 million) | |||||||||||||||||||||||
million | |||||||||||||||||||||||
34 | 281 | 235 303 | |||||||||||||||||||||
RR | (9 067) | (113) | (111) | ||||||||||||||||||||
230 000 | |||||||||||||||||||||||
Liabilities & | Equity | RE | Borrowings | Payables Government | RouL | Taxes | Liabilities & | ||||||||||||||||
Equity 31 | excl. RE | grants | Equity 30 June | ||||||||||||||||||||
December | 2020 | ||||||||||||||||||||||
2019 |
32
CASH FLOWS:
6M 2020 vs 6M 2019
CASH FLOWS ACCORDING TO MANAGEMENT VIEW | |
COMMENTS | (NOT IFRS PRESENTATION)** |
RR million
Main variances in cash flow statement line items between 6M20 and 6M19:
Net cash from operating activities:
Increase of Adjusted EBITDA (RR + 4,344 million) was compensated by the decrease of changes in working capital (RR -3,800 million) as the result variation in trade and other payables (RR -6,508 million), trade and other receivables including prepayments (RR +3,460 million) as well as inventories and biological assets (RR -631 million).
Net cash from investing activities:
- RR +1,580 million decrease in purchases of PPE and inventory intended for construction mainly related to finalizing of 3rd stage of Tambov Bacon in 3Q 2019 and second line of desugarisation in the end of 2019 (see breakdown by segment in the chart below);
- RR +187 million dividends received from Agro-Belogorie 22,5% investment acquired in 3Q 2019;
- RR -479 million proceeds from sales of subsidiary Kolyshleiskiy Elevator in 2019
- RR +277 million due to outflow of restricted cash during 6M 2019, no movements occurred during 6M 2020
- RR -191 million increase of intangible assets purchases mainly by Agricultural segment
Net cash from financing activities:
- RR +4,113 million net changes in borrowings due to lower repayment/proceeds ratio during 6M 2020;
- RR -2,595 million due to change in bank deposits. No deposits were placed or withdrawn during 6M 2020 vs. cash inflow from deposits during 6M 2019;
- RR -2,324 million proceeds from sales of bonds of RSHB and Evrokhim during 6M 2019, no cash flows in 2020;
- RR -933 million less loans repaid mainly related to SolPro deal
CAPEX* 6M 2020 vs 6M 2019, RR million | ||
6M 2020 | 6M 2019 | |
Oil&Fats, 648 | Oil&Fats, 100 | |
Sugar, | ||
1 672 | ||
Sugar, 913 | Meat, | |
2 083 | ||
Meat, | ||
Agro, 838 | ||
3 795 |
Agro, 1 181
Actual | Actual | Variances | ||
6M 2020 | 6M 2019 | Units | % | |
Cash flows from operating activities | ||||
Profit before income tax | 8,483 | 2,643 | 5,841 | 221 |
Adjustments for non-cash and non-operating | 4,381 | 6,022 | (1,641) | (27) |
(income)/expenses, net | ||||
Operating cash flow before working capital changes | 12,864 | 8,665 | 4,200 | 48 |
Change in trade and other receivables and prepayments | 1,308 | (2,152) | 3,460 | - |
Change in other taxes receivable | 984 | 632 | 352 | 56 |
Change in inventories and biological assets | 3,978 | 4,609 | (631) | (14) |
Change in trade and other payables | 619 | 7,127 | (6,508) | (91) |
Change in other taxes payable | (441) | 32 | (473) | - |
Cash generated from operations | 19,313 | 18,913 | 400 | 2 |
Income tax paid | (260) | (90) | (170) | (188) |
Net cash from operating activities | 19,053 | 18,823 | 230 | 1 |
Cash flows from investing activities | ||||
Purchases of property, plant and equipment and inventories | (4,825) | (6,405) | 1,580 | 25 |
intended for construction | ||||
Movement in restricted cash | - | (277) | 277 | - |
Purchases of associates | (35) | - | (35) | - |
Purchases of other intangible assets | (238) | (47) | (191) | (405) |
Proceeds from sale of subsidiaries, net of cash disposed | - | 479 | (479) | - |
Dividends received | 187 | - | 187 | - |
Other investing activities | 146 | 142 | 4 | 2 |
Net cash from investing activities | (4,765) | (6,108) | 1,343 | 22 |
Cash flows from financing activities | ||||
Net cash flow s on borrow ings, incl. interest paid on | (13,989) | (18,102) | 4,113 | 23 |
borrow ings and lease | ||||
Net cash flow s on financial assets related to financial activities, | 3,324 | 9,203 | (5,879) | (64) |
incl. interest received* | ||||
Proceeds from government grants | 545 | 770 | (226) | (29) |
Purchases of non-controlling interest | - | - | - | - |
Dividends paid to ow ners Ros Agro PLC | (3,217) | (3,402) | 185 | 5 |
(Repayment)/proceeds of lease liabilities-principal | (70) | (121) | 51 | 42 |
Net cash from financing activities | (13,407) | (11,651) | (1,756) | (15) |
Net effect of exchange rate changes on cash and cash | 173 | (114) | 287 | - |
equivalents | ||||
Net increase/ (decrease) in cash and cash equivalents | 1,054 | 949 | 104 | 11 |
Cash and cash equivalents at the beginning of the period | 2,171 | 1,728 | 442 | 26 |
Cash and cash equivalents at the end of the period | 3,224 | 2,678 | 547 | 20 |
(*) For detail see slide "Statement of cash flow according to Management view" in appendix
- For the purpose of conformity with the methodology of the Group's net debt calculation, cash flows on financial assets related to financial activities (bank deposits, bonds, promissory notes, loans given) are reclassified to Cash flows from financing activities in the Group's management accounts.
(*) CAPEX figures include cash outflows for purchases of property, plant | 33 |
and equipment and inventories intended for construction (excl. intersegment purchases). |
ADJUSTED EBITDA 6M 2020 (IFRS) BREAKDOWN BY DIVISIONS ROS AGRO PLC
RR million | |||||||
Six months ended 30 June 2020 | Sugar | Meat | Agriculture | Oil and Fat | Other | Elimination | Total |
Sales | 14 269 | 14 079 | 7 670 | 34 444 | 2 108 | -1 334 | 71 236 |
Net gain / (loss) on revaluation of biological assets and agricultural | 0 | 320 | -1 006 | 0 | 0 | 305 | -381 |
produce | |||||||
Cost of sales | -10 398 | -11 882 | -4 850 | -27 579 | -1 852 | 1 111 | -55 449 |
incl. depreciation | -1 317 | -1 671 | -823 | -234 | -6 | -9 | -4 060 |
Net gain / (loss) from trading derivatives | 11 | 0 | 0 | 0 | 0 | 0 | 11 |
Gross profit / (loss) | 3 882 | 2 518 | 1 813 | 6 865 | 256 | 82 | 15 416 |
General and administrative expenses, Distribution and selling | -1 777 | -1 339 | -1 597 | -2 793 | -932 | 441 | -7 998 |
expenses | |||||||
General and administrative expenses | -686 | -781 | -619 | -985 | -784 | 173 | -3 682 |
Distribution and selling expenses | -1 090 | -559 | -978 | -1 808 | -148 | 268 | -4 316 |
incl. depreciation | -38 | -110 | -134 | -78 | -88 | 9 | -439 |
Dep in General and administrative expenses | -37 | -106 | -107 | -54 | -87 | 0 | -391 |
Dep in Distribution and selling expenses | -1 | -4 | -27 | -23 | -1 | 9 | -48 |
Other operating (expenses)/ income, net | 95 | 51 | -76 | -34 | -51 | -157 | -173 |
incl. Reimbursement of operating costs (government grants) | 72 | 0 | 61 | 87 | 0 | 0 | 219 |
Other non-operating income/ (expenses), net | 468 | 204 | 115 | -176 | 5 635 | -4 628 | 1 617 |
incl. reimbursement of non-operating costs (government grants) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operating profit / (loss) | 2 667 | 1 433 | 255 | 3 861 | 4 907 | -4 263 | 8 862 |
Adjustments: | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Depreciation included in Operating Profit | 1 354 | 1 781 | 958 | 312 | 94 | 0 | 4 499 |
Other non-operating (income) /expenses, net | -468 | -204 | -115 | 176 | -5 635 | 4 628 | -1 617 |
Net gain / (loss) on revaluation of biological assets and agricultural | 0 | -320 | 1 006 | 0 | 0 | -305 | 381 |
produce | |||||||
Adjusted EBITDA | 3 554 | 2 690 | 2 104 | 4 350 | -634 | 61 | 12 125 |
34
ADJUSTED EBITDA 6M 2019 (IFRS) BREAKDOWN BY DIVISIONS ROS AGRO PLC
RR million | |||||||
Six months ended 30 June 2019 | Sugar | Meat | Agriculture | Oil and Fat | Other | Elimination | Total |
Sales | 15 674 | 11 169 | 9 157 | 28 941 | 1 987 | -1 608 | 65 320 |
Net gain/ (loss) on revaluation of biological assets and agricultural | 0 | -256 | -2 795 | 0 | 0 | -861 | -3 911 |
produce | |||||||
Cost of sales | -12 831 | -9 481 | -5 090 | -25 897 | -1 724 | 2 762 | -52 261 |
incl. depreciation | -972 | -1 272 | -658 | -237 | -6 | -6 | -3 150 |
Net gain/ (loss) from trading derivatives | -6 | 0 | 0 | 0 | 0 | 0 | -6 |
Gross profit | 2 837 | 1 433 | 1 271 | 3 044 | 263 | 294 | 9 143 |
General and administrative expenses, Distribution and selling | -1 565 | -966 | -2 183 | -2 759 | -1 062 | 160 | -8 374 |
expenses | |||||||
Distribution and selling expenses | -842 | -368 | -1 592 | -2 017 | -107 | 8 | -4 918 |
General and administrative expenses | -723 | -598 | -591 | -742 | -955 | 153 | -3 456 |
incl. depreciation | -40 | -62 | -120 | -74 | -36 | 6 | -326 |
Dep in Distribution and selling expenses | -2 | -4 | -24 | -37 | -13 | 6 | -75 |
Dep in General and administrative expenses | -38 | -57 | -96 | -37 | -23 | 0 | -252 |
Other operating income/ (expenses), net | 17 | -83 | -65 | -190 | -55 | 0 | -376 |
incl. reimbursement of operating costs (government grants) | 0 | 2 | 72 | 0 | 0 | 0 | 73 |
Other non-operating income/ (expenses), net | 406 | 125 | -43 | -19 | 10 944 | -10 354 | 1 059 |
incl. reimbursement of non-operating costs (government grants) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operating profit | 1 696 | 510 | -1 019 | 76 | 10 090 | -9 900 | 1 452 |
Adjustments: | |||||||
Depreciation included in operating profit | 1 012 | 1 333 | 778 | 311 | 42 | 0 | 3 477 |
Other non-operating (income) /expenses, net | -406 | -125 | 43 | 19 | -10 944 | 10 354 | -1 059 |
Net gain/ (loss) on revaluation of biological assets and agricultural | 0 | 256 | 2 795 | 0 | 0 | 861 | 3 911 |
produce | |||||||
Adjusted EBITDA | 2 302 | 1 973 | 2 597 | 406 | -812 | 1 315 | 7 781 |
35
STATEMENT OF CASH FLOWS ACCORDING TO MANAGEMENT VIEW (NOT IFRS PRESENTATION) ROS AGRO PLC
RR million | ||||||
Actual | Actual | Variances | ||||
Units | % | |||||
6M 2020 | 6M 2019 | |||||
Cash flows from operating activities Profit before income tax
Adjustments for non-cash and non-operating (income)/expenses, net:
Depreciation and amortization Interest expense Government grants
Interest income
Loss/ (gain) on disposal of property, plant and
Net (gain) / loss on revaluation of biological assets and agricultural produce
Lease financial expense Realised deferred day-one gain
Change in provision for net realisable value of inventory
Change in provision for impairment of receivables and prepayments
Foreign exchange (gain) / loss, net Lost / (reversal of) harvest write-off
Net (gain) / loss from bonds held for trading Change in provision for impairment of advances paid for property, plant and equipment
Dividend income
Loss / (gain) on disposal of subsidiaries, net Loss / (gain) on other investments
Other non-cash and non-operating expenses, net
Operating cash flow before working capital changes
Change in trade and other receivables and prepayments
Change in other taxes receivable
Change in inventories and biological assets Change in trade and other payables Change in other taxes payable
Cash generated from operations
Income tax paid
Net cash from operating activities
8,483 | 2,643 | 5,841 | 221 |
4,499 | 3,477 | 1,022 | 29 |
3,357 | 3,319 | 38 | 1 |
(1,307) | (950) | (357) | (38) |
(3,572) | (3,996) | 424 | 11 |
(51) | 93 | (144) | - |
381 | 3,911 | (3,530) | (90) |
130 | 108 | 22 | 20 |
(824) | (359) | (465) | (129) |
366 | 273 | 93 | 34 |
(4) | 72 | (76) | - |
1,361 | 20 | 1,342 | 6,750 |
180 | 83 | 97 | 117 |
17 | 23 | (6) | (24) |
113 | 29 | 84 | 287 |
(187) | - | (187) | - |
- | (365) | 365 | - |
- | 1 | (1) | - |
(79) | 284 | (363) | - |
12,864 | 8,665 | 4,200 | 48 |
1,308 | (2,152) | 3,460 | - |
984 | 632 | 352 | 56 |
3,978 | 4,609 | (631) | (14) |
619 | 7,127 | (6,508) | (91) |
(441) | 32 | (473) | - |
19,313 | 18,913 | 400 | 2 |
(260) | (90) | (170) | (188) |
19,053 | 18,823 | 230 | 1 |
36
STATEMENT OF CASH FLOWS ACCORDING TO MANAGEMENT VIEW (NOT IFRS PRESENTATION) - CONTINUANCE ROS AGRO PLC
RR million | ||||
Actual | Actual | Variances | ||
6M 2020 | 6M 2019 | Units | % | |
Cash flows from investing activities | - | |||
Purchases of property, plant and equipment | (4,016) | (5,644) | 1,628 | 29 |
Purchases of other intangible assets | (238) | (47) | (191) | (405) |
Proceeds from sales of property, plant and | 80 | 142 | (63) | (44) |
equipment | ||||
Purchases of inventories intended for construction | (809) | (761) | (48) | (6) |
Purchases of associates | (35) | - | (35) | 100 |
Movement in restricted cash | - | (277) | 277 | - |
Dividends received | 187 | - | 187 | - |
Proceeds from sale of subsidiaries, net of cash | - | 479 | (479) | - |
disposed | ||||
Other investing activities | 66 | - | 66 | - |
Net cash from investing activities | (4,765) | (6,108) | 1,343 | 22 |
Cash flows from financing activities | ||||
Proceeds from borrowings | 31,110 | 19,753 | 11,357 | 57 |
Repayment of borrowings | (42,937) | (34,814) | (8,123) | (23) |
Interest and other finance cost paid | (2,162) | (3,041) | 879 | 29 |
Dividends paid to owners Ros Agro PLC | (3,217) | (3,402) | 185 | 5 |
Change in cash on bank deposits* | - | 2,595 | (2,595) | - |
Proceeds from sales of bonds with maturity over | - | 2,324 | (2,324) | - |
three months* | ||||
Purchases of loan issued* | (2) | (87) | 85 | 98 |
Loans repaid* | 697 | 1,630 | (933) | (57) |
Interest received* | 2,629 | 2,742 | (113) | (4) |
Proceeds from government grants | 545 | 770 | (226) | (29) |
(Repayment)/proceeds of lease liabilities-principal | (70) | (121) | 51 | 42 |
Net cash from financing activities | (13,407) | (11,651) | (1,756) | (15) |
Net effect of exchange rate changes on cash and | 173 | (114) | 287 | - |
cash equivalents | ||||
Net increase/ (decrease) in cash and cash | 1,054 | 949 | 104 | 11 |
equivalents | ||||
Cash and cash equivalents at the beginning of the | 2,171 | 1,728 | 442 | 26 |
period | ||||
Cash and cash equivalents at the end of the | 3,224 | 2,678 | 547 | 20 |
period | ||||
- Including in net cash flows on financial assets related to financial activities.
37
STATEMENT OF FINANCIAL POSITION (IFRS) ROS AGRO PLC
RR million
30 June 2020 | 31 December | Variances | |||
2019 | Units | % | |||
ASSETS | 235,303 | 239,495 | (4,192) | -2 | |
Current assets | |||||
Cash and cash equivalents | 3,224 | 2,171 | 1,054 | 49 | |
Restricted cash | 0 | 0 | 0 | 13 | |
Short-term investments | 23,499 | 23,457 | 42 | 0 | |
Trade and other receivables | 7,106 | 8,068 | (962) | (12) | |
Prepayments | 2,486 | 3,019 | (533) | (18) | |
Current income tax receivable | 390 | 225 | 165 | 73 | |
Other taxes receivable | 3,365 | 4,349 | (984) | (23) | |
Inventories and short-term biological assets | 45,024 | 49,387 | (4,363) | (9) | |
Total current assets | 85,095 | 90,676 | (5,581) | (6) |
Non-current assets
Property, plant and equipment Inventories intended for construction Right-of-use assets
Goodw ill
Advances paid for property, plant and equipment Long-term biological assets
Long-term investments and receivables Investments in associates
Deferred income tax assets Other intangible assets Other non-current assets Non-current assets held for sale
83,030 | 80,629 | 2,400 | 3 |
3,566 | 3,157 | 409 | 13 |
6,209 | 6,231 | (21) | (0) |
2,365 | 2,365 | - | - |
6,646 | 8,721 | (2,075) | (24) |
2,307 | 2,279 | 27 | 1 |
42,633 | 42,636 | (3) | (0) |
200 | 165 | 35 | 21 |
2,611 | 1,853 | 758 | 41 |
593 | 609 | (16) | (3) |
47 | 173 | (126) | (73) |
- | - | - | - |
Total non-current assets | 150,208 | 148,819 | 1,389 | 1 |
Total assets | 235,303 | 239,495 | (4,192) | (2) |
38
STATEMENT OF FINANCIAL POSITION (IFRS) - CONTINUANCE ROS AGRO PLC
RR million
30 June 2020 | 31 December | Variances | |||
2019 | Units | % | |||
Liabilities and EQUITY | 235,303 | 239,495 | (4,192) | (2) | |
Current liabilities | |||||
Short-term borrow ings | 25,102 | 31,835 | (6,733) | (21) | |
Lease liabilities | 841 | 917 | (75) | (8) | |
Trade and other payables | 17,380 | 17,493 | (113) | (1) | |
Current income tax payable | 289 | 124 | 165 | 133 | |
Other taxes payable | 2,807 | 3,468 | (661) | (19) | |
Total current liabilities | 46,419 | 53,836 | (7,417) | (14) | |
Non-current liabilities | |||||
Long-term borrow ings | 63,707 | 66,041 | (2,334) | (4) | |
Government grants | 8,341 | 8,307 | 34 | 0 | |
Lease liabilities | 3,954 | 3,990 | (36) | (1) | |
Deferred income tax liability | 1,272 | 495 | 777 | 157 | |
Total non-current liabilities | 77,274 | 78,832 | (1,558) | (2) | |
Total liabilities | 123,693 | 132,668 | (8,975) | (7) | |
Equity | |||||
Share capital | 12 | 12 | - | - | |
Treasury shares | (491) | (491) | - | - | |
Additional paid-in capital | 26,964 | 26,964 | (0) | (0) | |
Other reserves | 1,314 | 1,314 | - | - | |
Retained earnings | 83,782 | 78,961 | 4,821 | 6 | |
PLC | 111,582 | 106,761 | 4,821 | 5 | |
Non-controlling interest | 28 | 66 | (38) | (57) | |
Total equity | 111,610 | 106,827 | 4,784 | 4 | |
Total liabilities and equity | 235,303 | 239,495 | (4,192) | (2) |
39
CONTACTS
Svetlana Kuznetsova
Head of Investment Department
E-mail: IR@rusagrogroup.ru
Tel.: +7 (495) 363-1661
www.rusagrogroup.ru/eng
40
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Rusagro plc published this content on 29 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2020 15:09:07 UTC
