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Transcript of ALLSEEDS GROUPallseeds.com/sites/default/files/allseeds_group_presentation_11_01... · Allseeds...
ALLSEEDS GROUPJanuar y 2016
www.a l l s eeds. com
Agenda
EXECUTIVE SUMMARY
COMPANY, STRUCTURE, MANAGEMENT
TRADING
TERMINAL AND MULTICRUSHER
TARGETED MARKETS AND COMPETITORS IN UKRAINE
GROUP FINANCIALS
2
Group OverviewALLSEEDS 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
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4
Picture of Oil Terminal and First Line of Multicrusher – September 2015
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.
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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 Ukrainianagricultural products to the world markets
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Building Up Success
2010-2011 Establishing trading company with strong market presenceTrading 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 logisticsCompleted 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 plantObtained bank financing for the construction of the plant. Construction in progress according to schedule. Operations started on mid July 2015.
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Legal Structure – Group ConsolidatedAllseeds S.A.
(Luxemburg)/ Holding
100%
Allseeds Ukraine LLCManagement
100%
Al Petri Ltd (BVI)Freight/Chartering
Allseeds Industrial SA(Luxemburg)/Industrial
Allseeds Switzerland SATrading/Logistics
Allseeds Group Ukraine LLCDormant
Allseeds Invest Ukraine LLCInvestments / Real Estate
Grand Terra LLCExport/ Tolling
100%
Hangar18 LLCLand Ownership
Allseeds Black Sea LLCTerminal, Factory Construction
Project Pivdennyi LLCLand Ownership
Allseeds Grain Terminal LLCGrain Terminal Construction
Allseeds Trans Balk LLCTrans Balk Construction
Allseeds Energy LLCCogeneration Plant Construction
Allseeds Logistic LLC
Logistic Projects
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100%
Branch “LLC
“Allseeds Black
Sea” Vegetable
Oil Terminal”
Oil transshipment
Branch “LLC “Allseeds
Black Sea” Oil-
extracting factory”
Tolling
100%
0,343%
89%
1%
1%
1%
99,653%
0,004%
1%
10%
1%
100%99%
99%
99%
99%
99%99%
1%
Agenda
EXECUTIVE SUMMARY
COMPANY, STRUCTURE, MANAGEMENT
TRADING
TERMINAL AND MULTICRUSHER
TARGETED MARKETS AND COMPETITORS IN UKRAINE
GROUP FINANCIALS
10
Sunflower Oil ShipmentShipment 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
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Major Clients for Sunflower OilThe 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
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Agenda
EXECUTIVE SUMMARY
COMPANY, STRUCTURE, MANAGEMENT
TRADING
TERMINAL AND MULTICRUSHER
TARGETED MARKETS AND COMPETITORS IN UKRAINE
GROUP FINANCIALS
13
Location: Ukraine-Odessa-Yuzhny
Odessa
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Port Yuzhny as the Best Option
Sea Ports Advantages Disadvantages
Yuzhny – the most
deep water port in
Ukraine
Located outside of the city
Good logistics access
Access for vessels up to 100k, draft 15m
Comparatively longer transport distance for
seeds
Odessa / Illychovsk Access for large vessels up to 50k, draft
12,5m
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
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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
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Terminal Technical Characteristics
Storage tanks 4 tanks – 5 000 m3
8 tanks – 3 000 m3
3 tanks – 300 m3
Discharging capacityTrucks – up to 4 000 MT/day
Weight bridge – 2 bridges of 21 meters/80 MT
Railcars – up to 4 000 MT/day
Shipment capacitySpeed of loading – 800 MT/hour
Berth draft – 14.6m
Vessel length – 250 m
Vessel size – up to 100 000 MT
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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
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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
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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)
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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)
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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
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Pipeline to Berth
Existing pipeline
Multiseed
crusher
Railway
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
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Agenda
EXECUTIVE SUMMARY
COMPANY, STRUCTURE, MANAGEMENT
TRADING
TERMINAL AND MULTICRUSHER
TARGETED MARKETS AND COMPETITORS IN UKRAINE
GROUP FINANCIALS
24
Sunflower Seed Harvest: 2013/2014
5,9
7,27,7
9,4 9,0
11,5
08\09MY 09\10MY 10\11MY 11\12MY 12\13MY 13\14MY
Sunflower Seed Harvest, M tons Sunflower Seed Area, M ha
4,44,5
4,95,2
5,4
5,9
08\09MY 09\10MY 10\11MY 11\12MY 12\13MY 13\14MY
Sunflower Seed Yield, tons per ha
1,4
1,6 1,6
1,81,7
2,0
08\09MY 09\10MY 10\11MY 11\12MY 12\13MY 13\14MY
Sunflower Seed Key Growing Area, M ha
3,1
3,0
1,9
4,9
0,6
0,8 1,9 0,6
2008
2013
East Center South North West
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Sunflower Seed Crushing: 2013/2014Sunflower Seed Balance, M tons
11,50,1
11,1
0,3
Harvest Export Crushing Ending stocks
Sunflower Seed Crushing Capacities, M tons
2,5
1,1
1,0
0,80,70,7
5,5
Kernel
Creative
Cargill
MHP
Vioil
Privat
Others
Sunflower Seed Crushing Results, M tons
4,7
4,2
42,3%
37,7%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
1,9
2,4
2,9
3,4
3,9
4,4
4,9
5,4
Sunflower oil Sunflower meal
Output Crushing Ratio
Share of Top-6 crushers, %
45% 48% 52% 57% 60% 65%
55% 52% 48% 43% 40% 35%
2008 2009 2010 2011 2012 2013
Top 6 Others
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Sunflower Oil Performance: 2013/2014Sunflower Oil Balance, M tons
4,7 0,5
4,2
Oil produced Consumed within Ukraine Exported
Key Export Destinations, %
37%
15%12%
7%
5%
3%
21%India
EU
China
Egypt
MENA
Turkey
Others
4,2m tons
Sunflower Oil Export Dynamics, M tons
2,0
2,32,5
3,23,0
4,2
08\09MY 09\10MY 10\11MY 11\12MY 12\13MY 13\14MY
Export to China, K tons
40
196
504
11\12MY 12\13MY 13\14MY
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Ukrainian Companies Dominate Global Sunflower Oil Trade MarketOver 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
484
28
433
76
1296
Kernel
Creative
Cargill
MHP
Others
844
148
375
176
1600
Kernel
Creative
Cargill
MHP
Others
1077
432
423217
2051
Kernel
Creative
Cargill
MHP
Others
Top-5 Ukrainian sunflower seed crushers held 30% of global sunflower oil export supply in 2013/2014
market year
2006/2007 2010/2011 2013/2014
2.3 M tons 3.1 M tons 4.2 M tons
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Sunflower Seed Supply/Demand Balance in 2014/2015MYCrushing Capacities, M tons
12,3
1,3
11,0
Crushingcapacities,13/14MY
Capacitiesreduction, Donbas
conflict
Crushingcapacities,14/15MY
Sunflower Seed Supply, M tons
11,5 11,1
0,3
10,0 10,3
13/14MYharvest
13/14MYcrushing
13/14 MYresiduals
14/15harvest
14/15 totalsupply
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Sunflower Seed Balance in the Crushing Industry: 2014/2015 MY
10,3
6,8
3,0
1,2
11,0
Sunflower seed supply Companies with financing Companies without financing Old press plants Total crushing capacities
VS.
Crushing Capacity by Type vs Sunflower Seed Supply, M tons
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Soybean Market
Soybean Harvest, Crushing & Export, K tons Soybean Seeds Balance 2014/2015 vs 2015/2016, K tons
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Soybean Oil & Meal MarketSoybean Oil, K tons Soybean Meal, K tons
142
29
115
14
174
31
140
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Crushing Consumption Export Ending Stock
2013/2014
2014/2015
703650
86 81
880
750
13083
Crushing Consumption Export Ending Stock
2013/2014
2014/2015
Top Soybean Producers 2014/2015 MY, %
27%
21%
6%5%
5%
36%
Globyno Crushing Plant Protein production Tegra Ukraine LLC
Dnyprovsky Olyjar Other32
The Largest Grain Terminals inSea Ports of Ukraine
The cost of grain handling in ports of Ukraine varies from $15 to $20 per 1 ton.
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№ 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
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
Agenda
EXECUTIVE SUMMARY
COMPANY, STRUCTURE, MANAGEMENT
TRADING
TERMINAL AND MULTICRUSHER
TARGETED MARKETS AND COMPETITORS IN UKRAINE
GROUP FINANCIALS
34
Group Financials (1)(*) 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 shows positive
cash flow from operational activity.
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In USD30 June 2013 30 June 2014
31 March 2015
(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-
EBITDA disclosure
In USD30 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
Group Financials (2)
36
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