IMC S.A.

listed on the Warsaw

Stock Exchange

March 2020

1

Table of contents

2

Company overview 3-23

Plans for 2020 24-26

Appendixes 27-32

COMPANY OVERVIEW

3

- Self sufficiency with storage capacities for own crop

farming segment - 554 ths tonnes of own storage

capacities

- Minor storage services for third parties

IMC - integrated agricultural business

IMC operates 123.9 ths hectares of land located in the prime fertile

farming regions of Ukraine (Poltava, Chernihiv, Sumy)

Crop farming

Dairy farming

Storage

Major crops: corn, sunflower, wheat, soybean

The number of cattle – 1,274 including 788 cows

(as of 01.02.2020)

4

Business segments’ contribution

Revenue breakdown, 2018

Total: USD 131.6 mln

Crop farming revenue breakdown, 2018

Total: USD 128.9 mln

5

Crop farming98,0%

Dairy farming1,1%

Storage service0,9%

Corn63,3%

Sunflower18,9%

Wheat8,3%

Soybeans7,6%

Other2,0%

2007-2011

Establishment & IPO Landbank & Storage

expansion

Business processes

improvement & KPIsDividend payments

2007-2009

- Establishment of IMC with

acquisition of agricultural

companies and storage facilities in

Poltava and Chernihiv regions of

Ukraine.

- Development and implementation of

modern management information

systems and operational controls.

2010

- Proven highly efficient platform

(with 37.9 ths ha of land and 172

ths t of storages) ready for further

expansion.

2011

- IPO on Warsaw Stock Exchange

with $24,4 mln raised to finance

further development.

- Establishment of new cluster in

Sumy region of Ukraine.

2012-2014 2015-2016 2017-2019

2012-2013

- Massive expansion of landbank

(up to 136.6 ths ha) and storage

capacities (up to 554 ths

tonnes) in Chernihiv region of

Ukraine via acquisition of

agricultural enterprises and

storage facilities as well as

construction of own new silo in

Sumy region. Establishment of

two new clusters.

2014

- IMC attracted a $30 million long-

term loan from IFC, a member

of the World Bank Group.

- Participation in “Sustainable

Development of Medium and

Small-Scale Farmers in

Ukraine” project initiated by IFC.

- Business processes efficiency

improvement programs were

implemented.

- KPI system for production

personnel was developed and

introduced.

- Dairy farming optimization

project was initiated.

- $20 million loan was raised

from the European Bank for

Reconstruction and

Development (EBRD).

- First dividend payment of

EUR 1.66 mln (2% yield) in

2017; then EUR11.28 mln

(12% yield) in 2018 and EUR

14.93 mln in 2019 (12% yield)

- Update of Strategy for 2016-

2020 with focus on:

Operational efficiency

improvement

Debt reduction

Payment of dividends to

shareholders

Milestones of development

6

Development track record

7

LAND BANK, ths ha

GRAIN & OILSEEDS STORAGE CAPACITY, ths t

REVENUE, mln USD

EBITDA, mln USD

34,0 35,8 35,7 37,9

59,6 64,2

82,7

120,7

136,6 136,6 136,6 136,6129,6 123,9

24,9 20,234,8 29,1

75,2

114,8

138,3 140,4

124,7 126,8 131,6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

4,09,0

19,525,7

32,0

49,5

57,4

66,5

59,0

39,1

50,8

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

72

172 172 172211 223

338

554 554 554 554 554 554

• 123.9 ths hectares in prime fertile farming regions of Ukraine.

• High concentration of land plots within the clusters (average

distance between fields up to 20 km).

• Developed and self-sufficient farming infrastructure:

own storage capacities for grain and oilseeds

logistic infrastructure

own machinery park.

# Cluster

Land under

management,

ths ha

Grain and

oilseeds

storage,

ths t

Cattle

(01.02.2020)

1 Chernihiv 27.4 102 1002

2 Nosivka 30.1 115 -

3 Pryluky 19.9 160 272

4 Poltava 22.6 87 -

5 Sumy 23.9 90 -

123.9 554 1274

1

25

3

4

Kyiv

U K R A I N E

8

Favorable land bank location and

infrastructure

Black Sea Azov Sea

High capacity machinery park

About 750 units of own machinery

• Seeders: Horsch, Great Plains, Kinze

• Tractors: Case, John Deere, New Holland, Fendt

• Combines: Case, New Holland, John Deere

Cultivators and harrows: Horsch, John Deere,

Lemken

• Trucks

9

Self-sufficient storage capacities for

crop farming segment

10

• Strategic location of silos in key farming

areas and close to IMC operations

• All silos are linked to national railway

network and allow grain shipments to ports

by railcar

• Self-sufficiency in storage capacity allows

IMC to control product quality and to

enhance its flexibility to sell its crop at a time

of its preference, reducing sales at harvest

when prices are suffering from crop pressure

Crop production dynamics

Ths tonnes

56

127154

117172

301

555

706

638

717674

856

795

0 2 4 6 15 25 21 20 16 21 23

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

grain & oilseeds potato

11

Crop yields

Source: Company data, State Statistics Service of Ukraine

12

7,1

8,1

7,3

9,1 9,1

11,1

9,7

4,9 5,2 5,0 4,8

5,7 5,5

6,3

2,6 2,6 2,83,2 2,9

3,5 3,7

1,9 1,7

2,6

3,4

2,33,0

2,6

201

3

201

4

201

5

201

6

201

7

201

8

201

9

201

3

201

4

201

5

201

6

201

7

201

8

201

9

201

3

201

4

201

5

201

6

201

7

201

8

201

9

201

3

201

4

201

5

201

6

201

7

201

8

201

9

Corn Wheat Sunflower Soybean

Gross Crop Yields, t/ha

IMC Ukraine

Strong export orientation in sales

58%48%

57% 52% 47%

68%74% 70% 73% 74%

80%

0%

20%

40%

60%

80%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

IMC: Share of Export Revenue

Asia

E X P O R T E D C R O P S :

Middle EastNorthern AfricaEU

EXPORT DESTINATIONS

wheatcorn soybean

13

Raw milk production, ths t

Annual Yields per cow, tonnes

Dairy farming optimization project

has been nearing completion

IMC milk price, USD/t

14

5,0 5,1 5,2 5,3 5,3 5,4 5,5 5,6 6,0 6,1 6,4

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

304241

354 377321

430306

202 209270 278 313

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

12,9 15,6 16,1 18,1 20,823,7 22,5

19,215,0

5,8 5,0 5,3

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

14

Taking into account low and unstable profitability of the dairy

farming, in 2015 IMC launched Dairy farming optimization

project:

13 unviable farms were closed down and the most productive

animals were relocated to Chernihiv cluster of IMC.

Currently IMC has 2 dairy farms in Chernihiv region.

In 2019 IMC completed the reconstruction of dairy farm in

Velykyi Zliyiv village (Chernihiv cluster) and currently have a

closed cycle of production at this farm (from heifer to milk

cow).

Milk yields and quality have gradually been growing in line

with the targets of the project.

The constant flow of innovations

introduced

Modern IT-solutions are widely used at IMC, that help to have real-

time control of:

In particular

Decision-making process,

internal business-processes

Operational on-site activities,

field & crops conditions

Utilization of resources &

field operation control

Land bank control

& management

15

IMC e-portal

all internal documents – transformed

into e-form

quick approval and response of

everyone involved

40% shorter time for resolving internal

issues & questions

access from everywhere (PC, tablet,

phone)

16

MAg – Mobile Agronomist

operative e-mapping of all field

operations

real-time distant control of crops

quality

real-time reporting on

agronomists’ work

database of field operations

& vegetation stages history

17

PreAgri – IMC Geoportal

all IMC geodata – at one place

with 24/7 access

NDVI maps – tracking field

conditions

weather stations data

drones routes, photo & video

seeding rate

yield maps

soil analyses

18

Wialon – GPS monitoring

all machinery & cars tracked

speed control (safety; field

operations accuracy)

precise field works calculations

proper logistics & planning

19

Panorama – land bank control

more than 30 000 land plots digitalized

proper land management

all data on land plots owners at one place

unified register of all land lease

agreements

20

Precision Agriculture Dept.

created in 2017

crops seeded with autopilot

own RTK stations installed – high-quality signal

for GPS-controlled operations obtained

section control on seeders (avoiding overlaps)

soil analyses done – differential fertilizers

application

soil cultivation with autopilot (-5% fuel

consumption, +7% productivity)

21

Strategy 2016-2020

Debt reduction

Operational efficiency improvement

No land bank expansion before the introduction of

agricultural land market in Ukraine

Export-oriented crops growing

(with focus on corn)

Storage capacity modernization

Continuous search and introduction of

innovations in agriculture

Payment of dividends to shareholders

22

Dividend policy

September

2017

September

2018

August

2019

Dividend

paid

1.66

mln EUR

11.28

mln EUR

14.93

mln EUR

Dividend

yield 2% 12% 12%

23

PLANS FOR 2020

24

Crop mix – 2020F

25

Corn56%

Sunflower21%

Wheat17%

Fodder crops0,6%

Fallow5,6%

CAPEX – 2020F $ 4.9 mln

including:

Agricultural machinery $ 4.4 mln

Storages repairs $ 0.5 mln

Total Debt, $ mln Debt Structure as of 31 December 2019, $47.0 mln

26

Financial plans - 2020

22,0

80,6

140,0

163,8

129,9

104,383,6

64,5 58,847,0

35,0

Total debt maximum,

1 February, 2014

IFC; 12,9

CREDIT AGRICOLE BANK; 10,5

UKRSIBBANK (BNP Paribas

Group); 12

Raiffeisen Bank AVAL;

11,6

APPENDIXES

27

Selected Financials

28

Income Statement1

$ mln 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenue 34,8 29,1 75,2 114,8 138,3 140,4 124,7 126,8 131,6

Normalised EBITDA 19,5 25,7 32,0 49,5 57,4 65,3 59,0 39,1 50,8

Normalised EBIT 16,0 20,6 24,6 38,4 47,1 59,7 47,8 30,1 38,3

Normalised Net profit 16,3 18,7 19,5 26,6 25,9 44,7 35,8 24,1 32,6

Cash Flow Statement1

$ mln 2010 2011 2012 2013 2014 2015 2016 2017 2018

Net Cash flows from

operating activities 12,3 -9,7 10,6 4,2 25,2 34,4 29,3 32,4 28,2

Net Cash flows from

investing activities 2,1 -17,7 -58,3 -19,8 -25,8 -3,0 -5,0 -4,9 -4,5

Net Cash flow from

financing activities -12,5 30,3 44,8 30,3 11,9 -23,4 -21,8 -23,9 -22,1

Net change in cash 1,9 3,0 -3,0 14,7 11,3 8,0 2,5 3,5 1,5

Balance Sheet1

$ mln 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Assets 87,4 138,7 244,5 361,9 183,8 174,6 158,9 180,1 198,2

Inventories & biological

assets 23,8 60,8 113,0 171,8 100,1 73,6 74,7 79,8 111,4

Total Borrowings 12,2 22,0 80,6 140,0 129,9 104,3 83,6 64,5 58,8

Cash 2,0 4,6 1,8 16,4 3,0 6,7 4,2 6,1 3,9

Net Borrowings 10,2 17,4 78,9 123,6 126,9 97,6 79,4 58,4 54,9

Equity 67,2 109,0 128,0 153,9 25,7 54,9 65,1 104,0 120,7

1. Financials are

audited by

Baker Tilly

(2010, 2011,

2012, 2013,

2014, 2015)

and by HRT

REVISION /

BDO (2016,

2017, 2018)

2. Normalisation

adjustments to

EBITDA, EBIT

and Net Profit

excludes

effects of non-

recurring

expenditure

from operating

segments such

as income from

the exchange

of property

certificates,

write off of

PP&E, loss on

revaluation of

other PP&E

resulting from

an isolated,

non-recurring

event

Key Ratios

29

2010 2011 2012 2013 2014 2015 2016 2017 2018

Current ratio 3.4 5.1 1.7 1.3 1.2 1.2 2.4 2.0 2.1

Net Borrowings/Equity 0.2 0.2 0.6 0.8 4.9 1.8 1.2 0.6 0.5

Net Borrowings/EBITDA 0.5 0.7 2.5 2.5 2.2 1.5 1.3 1.5 1.1

Interest coverage 8.6 10.9 4.4 3.0 2.3 4.0 3.9 5.0 7.7

Equity/Assets 0.8 0.8 0.5 0.4 0.1 0.3 0.4 0.6 0.6

Board of Directors &

Shareholder structure

30

Board of Directors

Oleksandr Petrov

Chairman of the Board

• Alex Lissitsa

Executive Director, CEO

• Dmytro Martyniuk

Executive Director, CFO

• Alfons Balmann

Non-Executive Director

Shareholder Structure

• Kamil Gaworecki

Non-Executive Director

IMC S.A. has been listed on the Warsaw Stock Exchange

since May 2011

Oleksandr Petrov; 74,16%

Free float; 25,84%

• Oleksandr Verzhykhovskyi

Executive Director, COO

• Olena Krysenko

Executive Director, Commercial Director

• Sergii Klimishyn

Executive Director, Legal Director

31

Winter

cropsSpring

crops

Measurement of biological

assets and agriculture

produce

In accordance with IAS 41 “Agriculture”

of IFRS:

current and non-current biological

assets are measured on initial

recognition and at the end of each

reporting period at their fair value less

costs to sell;

agricultural produce harvested from

biological assets is measured at its fair

value less costs to sell at the point of

harvest.

Net changes in fair value of biological

assets and agriculture produce are

recognized in statement of

comprehensive income.

Biological assets of crop

farming

(31 March / 30 June / 30

September / 31 December)

Fair value of biological assets of crop

farming is estimated using DCF model

based on the following assumptions:

expected crop yield is based on the

past crop yield adjusted on weather

conditions;

prices for grains are obtained from

external verifiable sources or are the

contractually agreed prices (in cases

when the Company has signed

agreements with customers for material

volume of agricultural products);

cultivation and production costs are

projected based on actual and

historical information;

the discount rate

Agriculture produce

Agriculture produce is measured at the

date of harvest using:

current market prices less costs to

sell or the contractually agreed prices

less costs to sell (in cases when the

Company has signed agreements with

customers for material volume of

agricultural products)

At each reporting date agriculture

products in inventory are tested for

impairment. The measurement of

impairment is based on the analysis of

market prices for similar agriculture

products, available at the reporting date

and published in official sources, and

the estimated costs necessary to make

the sale.

Fair value methodology for biological assets of

crop farming and agriculture produce

September-

October

December -

March - June

July-August

April –

May

June -

August

September-

November

Biological transformation

Biological assets are booked at fair value

Harvesting

Agriculture produce is booked at fair value

Sowing

Biological assets are booked at cost

119х Lobanovskyi Valerii Avenue, business center “DemievSky”,

Kyiv, 03039, Ukraine

www.imcagro.com.ua

IR contact Yulia Andrushkina, y.andrushkina@imcagro.com.ua

Adr.

32

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