ALLSEEDS GROUP Januar y 2016 www.allseeds.com
Agenda EXECUTIVE SUMMARY COMPANY, STRUCTURE, MANAGEMENT TRADING TERMINAL AND MULTICRUSHER TARGETED MARKETS AND COMPETITORS IN UKRAINE GROUP FINANCIALS 2
Group Overview ALLSEEDS GROUP is engaged in vegetable oil transshipment and trade, sunflower seeds, rapeseeds, soybean crushing. Main assets of the Group, Multiseed Crusher with processing capacity: 2 400 MT/day of sunflower (760 KT per year); 1 800 MT/day of rapeseed (570 KT per year); 1 440 MT/day of soybean (460 KT per year), and Terminal, is located in port Yuzhny. Port Yuzhny is the most deep sea port in Ukraine 17 m depth with possible deepening up to 21 m. The future development of the Group consists of: Construction of Second Line: 2 400 MT/day of sunflower; 1 800 MT/day of rapeseed; 1 440MT/day of soybean (760 KT, 570 KT, 460 KT respectively per year) Third Soybean Crushing Line: 5 000 MT/day of soybean (1.600 KT per year) Construction of Grain Terminal with total transshipment 8 000 000 MT grain per year Construction of 2 berths Construction of the own railway station Increasing of Group trading of grain and oil trade up to 9 mn ton 3
Picture of Oil Terminal and First Line of Multicrusher September 2015 4
Agenda EXECUTIVE SUMMARY COMPANY, STRUCTURE, MANAGEMENT TRADING TERMINAL AND MULTICRUSHER TARGETED MARKETS AND COMPETITORS IN UKRAINE GROUP FINANCIALS 5
Management Viacheslav Petryshche - CEO/Strategy/Investments More than 25 years of experience in agricultural sector. Previous places of work: Euromill Ukraine, Ilta Trade, Allseeds Group LLC Kees Vrins - Trading/Logistics/Operations Rest of the World More than 20 years of experience in oil trade and logistic. Previous places of work: Sanofi SA, Dratec SA, Allseeds Group LLC Vladymyr Slabovsky COO/Trading & Logistic in Ukraine More than 20 years of experience in grain trade and logistic. Previous place of work: TIS Holding Igor Frantskevych CFO/Legal/IT/Operations in Ukraine More than 18 years of banking experience. Previous place of work: Raiffeisenbank Ukraine, Index Bank. 6
Group Commitment Holding with transparent Legal, Tax & Finance structure IPO-able Independent audit from a top-audit firm Baker Tilly Organization, operations & corporate governance in accordance with the world standards Environmental awareness and social responsibility Mission Statement Independent trading, logistics and processing company with the focus on bringing Ukrainian agricultural products to the world markets 7
Building Up Success 2010-2011 Establishing trading company with strong market presence Trading volumes of 250,000MT, the largest independent sunflower oil trader in Ukraine in first year of operations. 2011-2012 Processing under tolling agreements Crushing operations under tolling agreements with independent producers in Ukraine. 2012-2013 Construction of own port logistics Completed construction of Oil Transshipment Terminal and railway connection in Port Yuzhny. Transshipment of 300,000MT of oil during first three quarters since the start of Terminal operations. 2013-2015 Construction of multiseed crushing plant Obtained bank financing for the construction of the plant. Construction in progress according to schedule. Operations started on mid July 2015. 8
Legal Structure Group Consolidated Al Petri Ltd (BVI) Freight/Chartering 100% Allseeds S.A. (Luxemburg)/ Holding 100% Allseeds Switzerland SA Trading/Logistics 100% Allseeds Ukraine LLC Management 100% Allseeds Industrial SA (Luxemburg)/Industrial 99,653% Grand Terra LLC Export/ Tolling 0,343% 1% Allseeds Logistic LLC Logistic Projects 99% 100% Hangar18 LLC Land Ownership 0,004% Allseeds Invest Ukraine LLC Investments / Real Estate 1% 100% 1% Allseeds Energy LLC Cogeneration Plant Construction 99% 99% Project Pivdennyi LLC Land Ownership 1% 10% Allseeds Group Ukraine LLC Dormant 89% 1% Allseeds Trans Balk LLC Trans Balk Construction 99% 99% Allseeds Black Sea LLC Terminal, Factory Construction 1% Allseeds Grain Terminal LLC Grain Terminal Construction 99% Branch LLC Allseeds Black Sea Vegetable Oil Terminal Oil transshipment Branch LLC Allseeds Black Sea Oilextracting factory Tolling 9
Agenda EXECUTIVE SUMMARY COMPANY, STRUCTURE, MANAGEMENT TRADING TERMINAL AND MULTICRUSHER TARGETED MARKETS AND COMPETITORS IN UKRAINE GROUP FINANCIALS 10
Sunflower Oil Shipment Shipment Volumes, thousands MT 2010-2014 Trading Overview Start of operations: 2010 Shipments volumes increased from 124 KT in 2010 to 392 KT in 2014 CPT Purchases increased from 65 KT to 121 KT in 2014 compared to 2013 FOB Purchases increased from 112 KT to 280 KT in 2014 compared to 2013 11
Major Clients for Sunflower Oil The Major Clients for Sunflower Oil are Alfa Group/Wilmar, Kaluseewari, Glencore, Bunge, Tampieri, Noble, Lipidos Distribution of Turnover per major Clients for Oil 2010 2011 2012 2013 2014 10 Major Clients 73% 70% 48% 89% 84% 5 Major Clients 52% 51% 48% 67% 62% Total Nbr Clients 22 34 35 17 23 Total Tonnage, MT 123 972 263 608 278 779 176 327 391 800 12
Agenda EXECUTIVE SUMMARY COMPANY, STRUCTURE, MANAGEMENT TRADING TERMINAL AND MULTICRUSHER TARGETED MARKETS AND COMPETITORS IN UKRAINE GROUP FINANCIALS 13
Location: Ukraine-Odessa-Yuzhny Odessa 14
Port Yuzhny as the Best Option Sea Ports Advantages Disadvantages Yuzhny the most deep water port in Ukraine Odessa / Illychovsk Located outside of the city Good logistics access Access for vessels up to 100k, draft 15m Access for large vessels up to 50k, draft 12,5m Comparatively longer transport distance for seeds Too busy port Located in city center Nikolaev More centrally located in growing region No ring road : Access via town only Shortage of land plots with easy access to existing berths Channel depth limits vessel access to 20k Kherson / Mariupol / Berdyansk Access limited to vessels of 6 7k Located in city centre 15
Oil Transshipment Terminal Start of operations: June 2013 Transshipment capacity: 700 000 MT/year Connection to berth: own pipeline, with option for multiple pipes Independent laboratory & Surveyor: Nofalab / Dr Buschmeyer 16
Terminal Technical Characteristics Storage tanks 4 tanks 5 000 m 3 8 tanks 3 000 m 3 3 tanks 300 m 3 Shipment capacity Speed of loading 800 MT/hour Berth draft 14.6m Vessel length 250 m Vessel size up to 100 000 MT Discharging capacity Trucks up to 4 000 MT/day Weight bridge 2 bridges of 21 meters/80 MT Railcars up to 4 000 MT/day 17
Terminal Operational Activity Transshipment Volumes, MT (Vessel loading) 2013/2014 MY 1H 2014/2015 MY the Group 121 405 24 020 3d Parties 176 094 117 713 TOTAL 297 499 141 733 18
Multiseed Crushing Plant Line I (1) Start of Construction: Q1 2014 Start of operations: July 2015 Forecasted processing capacity: 2 400 MT/day of sunflower; 1 800 MT/day of rapeseed; 1 440 MT/day of soybean Silo storage capacity: 50 000 MT of SFS seeds 19
Multiseed Crushing Plant Line I (2) Supplier of production line: Andreotti Impianti (Italy), Buhler (Germany), Westfalia (Germany), Harburg Freudenberger (Germany) Supplier of boiler equipment: Vyncke (Belgium), Bosch (Germany) Supplier of silo equipment: Muyang (China) Construction surveyor: Tebodin (Netherlands) 20
Multiseed Crushing Plant Line II & III (3) Processing capacity for Line II: 2 400 MT/day of sunflower; 1 800 MT/day of rapeseed; 1 440 MT/day of soybean Processing capacity for Line III: 5 000MT/day of soybean Silo storage capacity: 120 000MT Supplier of production line: Andreotti Impianti (Italy), Buhler (Germany), Westfalia (Germany), Harburg Freudenberger (Germany) Supplier of boiler equipment: Vyncke (Belgium)) Supplier of silo equipment: To be appointed Technical consulting: Tebodin (Netherlands) 21
Railway & Trucks Delivery Total length of 980m Three branches with planned expansion to nine branches Own station at the territory of the plant built in 2013 Annual capacity limits agreed with Ukrzaliznytsa: 10 000 000 MT Railway and station built from own funds Convenient access roads for trucks 22
Existing pipeline Pipeline to Berth Pipeline passes to Berth through the territory of TIS The length of pipeline is 3,7 km Transaction and Lease Agreement with TIS for pipeline transit is signed for 49 years Railway Multiseed crusher 23
Agenda EXECUTIVE SUMMARY COMPANY, STRUCTURE, MANAGEMENT TRADING TERMINAL AND MULTICRUSHER TARGETED MARKETS AND COMPETITORS IN UKRAINE GROUP FINANCIALS 24
Sunflower Seed Harvest: 2013/2014 Sunflower Seed Harvest, M tons Sunflower Seed Area, M ha 7,2 7,7 9,4 9,0 11,5 4,4 4,5 4,9 5,2 5,4 5,9 5,9 08\09MY 09\10MY 10\11MY 11\12MY 12\13MY 13\14MY Sunflower Seed Yield, tons per ha 1,8 1,7 1,6 1,6 1,4 2,0 08\09MY 09\10MY 10\11MY 11\12MY 12\13MY 13\14MY Sunflower Seed Key Growing Area, M ha 2013 3,0 4,9 0,8 1,9 0,6 2008 3,1 1,9 0,6 08\09MY 09\10MY 10\11MY 11\12MY 12\13MY 13\14MY East Center South North West 25
Sunflower Seed Crushing: 2013/2014 Sunflower Seed Balance, M tons 11,5 0,1 11,1 Sunflower Seed Crushing Capacities, M tons 2,5 Kernel Creative 5,5 1,1 Cargill MHP 5,4 4,9 4,4 3,9 3,4 2,9 2,4 Harvest Export Crushing Ending stocks 45,0% Sunflower Seed Crushing Results, M tons 42,3% 40,0% 37,7% 35,0% 30,0% 4,7 4,2 25,0% 20,0% 0,3 Vioil 1,0 Privat 0,8 0,7 0,7 Others Share of Top-6 crushers, % 55% 52% 48% 43% 40% 45% 48% 52% 57% 60% 35% 65% 1,9 Sunflower oil Output Crushing Ratio Sunflower meal 15,0% 2008 2009 2010 2011 2012 2013 Top 6 Others 26
Sunflower Oil Performance: 2013/2014 Sunflower Oil Balance, M tons Key Export Destinations, % 4,7 0,5 4,2 3% 5% 21% 4,2m tons 37% India EU China Egypt 7% MENA Oil produced Consumed within Ukraine Exported Sunflower Oil Export Dynamics, M tons 4,2 Turkey 12% 15% Others Export to China, K tons 504 3,2 3,0 2,0 2,3 2,5 196 40 08\09MY 09\10MY 10\11MY 11\12MY 12\13MY 13\14MY 11\12MY 12\13MY 13\14MY 27
Ukrainian Companies Dominate Global Sunflower Oil Trade Market Over last 7 years Ukrainian companies increased share in global sunflower oil trade. Ukraine now is undisputable market leader with 56% global market share Top Ukrainian Sunflower Oil Exports, K tons 2006/2007 2010/2011 2013/2014 Kernel Kernel 484 1077 844 Creative Creative 28 2051 1296 2.3 M tons 1600 3.1 M tons 4.2 M tons Cargill Cargill 148 433 432 MHP 375 MHP 76 423 176 217 Others Others Kernel Creative Cargill MHP Others Top-5 Ukrainian sunflower seed crushers held 30% of global sunflower oil export supply in 2013/2014 market year 28
Sunflower Seed Supply/Demand Balance in 2014/2015MY Crushing Capacities, M tons Sunflower Seed Supply, M tons 1,3 12,3 11,0 11,5 11,1 10,0 10,3 Crushing capacities, 13/14MY Capacities reduction, Donbas conflict Crushing capacities, 14/15MY 13/14MY harvest 13/14MY crushing 0,3 13/14 MY residuals 14/15 harvest 14/15 total supply 29
Sunflower Seed Balance in the Crushing Industry: 2014/2015 MY Crushing Capacity by Type vs Sunflower Seed Supply, M tons 1,2 3,0 10,3 VS. 11,0 6,8 Sunflower seed supply Companies with financing Companies without financing Old press plants Total crushing capacities 30
Soybean Market Soybean Harvest, Crushing & Export, K tons Soybean Seeds Balance 2014/2015 vs 2015/2016, K tons 31
Soybean Oil & Meal Market Soybean Oil, K tons Soybean Meal, K tons 174 880 142 115 140 703 650 750 2013/2014 2013/2014 2014/2015 2014/2015 29 31 14 17 130 86 81 83 Crushing Consumption Export Ending Stock Top Soybean Producers 2014/2015 MY, % Crushing Consumption Export Ending Stock 36% 27% 5% 5% 6% 21% Globyno Crushing Plant Protein production Tegra Ukraine LLC 32 Dnyprovsky Olyjar Other
The Largest Grain Terminals in Sea Ports of Ukraine Company Port Owner Capacity, kt Transshipment 2013/2014, kt Storage, kt 1 TIS-Grain Yuzhnyi Private 6 500 6 293 370 2 Nibulon Mykolayiv Private 5 000 4 541 627 3 Olympex Coupe Odesa Private 3 200 2 670 255 4 Illichivskyi Grain Terminal Illichivsk Glencore 4 000 2 540 220 5 Ukrelevatorprom Odesa Alfred C. Toepfer (ADM) 2 500 2 347 210 6 Nika Tera Mykolayiv Private 3 000 2 210 210 7 Greentour-Ex Mykolayiv Bunge 4 000 2 171 134 8 Transbulkterminal Illichivsk Kernel 4 000 2 169 190 9 Borivage Yuzhnyi Privat Group 2 000 1 970 126 10 Odesa Port Silo Odesa State Food Grain Corp 1 380 1 000 98 11 Mykolayiv Port Silo Mykolayiv State Food Grain Corp 1 000 795 69 The cost of grain handling in ports of Ukraine varies from $15 to $20 per 1 ton. 12 Brooklyn-Kiev Odesa Private 1 000 700 66 TOP 12 37 580 29 406 2575 Others 8 394 Total 37 800 Source: transhipment - Ukrainian Agrarian Confederation 33
Agenda EXECUTIVE SUMMARY COMPANY, STRUCTURE, MANAGEMENT TRADING TERMINAL AND MULTICRUSHER TARGETED MARKETS AND COMPETITORS IN UKRAINE GROUP FINANCIALS 34
Group Financials (1) In USD 31 March 2015 30 June 2013 30 June 2014 (9 months) Sales 164 304 000 241 203 000 220 489 333 Gross Sales Margin 6 642 000 15 723 000 12 516 092 EBIT 1 072 000 3 523 000 2 009 729 Other financial income (expenses), net - 122 000-1 109 000-3 065 138 Foreign currency reveluatiohn related to Operating activities 134 000-481 000-576 527 Foreign currency reveluatiohn related to Construction(*) - - - 2 488 611 Profit before taxes 950 000 2 414 000-1 733 738 Profit/(Loss) for the period 1 043 000 2 045 000-1 845 958 (*) Major portion of foreign currency revaluation loss resulting from timing gap between accrual of VAT receivable and VAT refund of amounts nominated in UAH and related to construction activities. EBITDA disclosure In USD 30 June 2013 30 June 2014 01/07/2014-31/03/2015 EBITDA disclosure NET Profit 1 043 000 2 045 000-1 845 958 Tax expenses/(benefits) - 93 000 369 000 112 220 Depreciation&Amortization 46 000 783 000 577 595 Finance costs/(income) 122 000 1 109 000 3 588 947 EBITDA - 578 000 3 902 000 2 587 324 EBITDA disclosure shows positive cash flow from operational activity. 35
Group Financials (2) ALLSEEDS S.A. Consolidated Balance Sheet as at 31 March 2015 (9 months) In USD 2 015 2 014 ASSETS Current Assets, total 23 510 926 35 488 963 Fixed Assets 31 897 207 25 323 199 Construction in progress 48 963 947 2 920 999 Prepayment for PPE 2 821 311 679 707 Long-term loans 655 500 1 388 401 Non-Current Assets, total 83 297 208 34 271 448 TOTAL ASSETS 106 808 134 69 760 411 LIABILITIES & EQUITY Short Term Liabilities, total 12 626 284 24 933 206 Long-term loans from banks 56 246 165 8 218 233 Long-term subordinated loans (related parties) 15 000 000 15 000 000 Long Term Liabilities, total 72 996 912 23 632 118 Total Equity 21 184 939 21 195 087 Total Capital Basis (Equity plus Subordinated Loan) 36 184 939 36 195 087 TOTAL LIABILITIES AND EQUITY 106 808 134 69 760 411 36