November 2015
ROS AGRO
Presentation for Investors
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Disclaimer
• This presentation was prepared using the information available to ROS AGRO PLC and its subsidiaries (the “Group”) at
the time of its preparation. Some of the statements in this presentation regarding the Group's business activities,
economic indicators, financial position, business and operating performance, plans, projects and expected results, as
well as price trends, costs, anticipated expenses, development prospects, industry and market forecasts, individual
projects and other factors are forward-looking statements, i.e. they are not established facts. The forward-looking
statements which the Group may make from time to time (but which are not included in this document) may also contain
planned or expected data on revenue, profits (losses), dividends and other financial indicators and ratios. The words
«intends», «aims», «projects», «expects», «estimates», «plans», «believes», «assumes», «may», «should», «will»,
«will continue» and similar expressions usually indicate forward-looking statements. However, this is not the only way to
denote the forward-looking character of information
• Due to their specific nature, forward-looking statements are associated with inherent risk and uncertainty, both general
and specific, and there is the danger that assumptions, forecasts and other forward-looking statements will not actually
come to pass. In light of these risks, uncertainties and assumptions, the Group cautions that, owing to the influence of a
wide range of material factors, actual results may differ from those indicated, directly or indirectly, in the forward-looking
statements, which are only valid as at the time of preparation of this presentation. ROS AGRO PLC neither affirms nor
guarantees that the performance results set forth in the forward-looking statements will be achieved
• The Group accepts no liability for losses which may be incurred by individuals or legal entities who act on the basis of
the forward-looking statements. In each particular case, the forward-looking statements represent only one of many
possible development scenarios, and should not be seen as the most probable. Except in those cases directly
stipulated by applicable legislation and the Listing Rules of the UK Listing Authority, the Group assumes no obligation to
publish updates and amendments to the forward-looking statements to reflect new information or subsequent events
2
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Table of Contents
3
1 Introduction to Ros Agro 4
2 Investment highlights 9
3 Strategy and business development 31
Financial performance 37 4
Appendix 5 46
Introduction to Ros Agro
Section 1
4
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Ros Agro – The leader of the Russian agricultural sector
5
Business highlights
2014 Revenue and EBITDA breakdown by segment3
2014 Key operational figures
Highly recognized customer brands
• #2 sugar producer in Russia with 15% market share1
• #2 pork producer in Russia with 6% market share1
• #1 margarine producer in Russia with 49% market share1
• 500 ths. ha land bank primarily in the Black Earth region of Russia2
• Vertically integrated business model:
‒ Ros Agro operates a leading agricultural business with crop yields
significantly higher than Russia’s average
‒ Meat business is secured by grain segment providing fodder
‒ Sugar segment’s raw material supply is secured by own sugar beet
crop
‒ Vertically-integrated business delivers best-in-class margins and a
hedge against commodity price fluctuations
Ros Agro Group – A leading vertically integrated agriculture company with exposure to highly attractive market segments in Russia and CIS
Agricultural land bank2 500 ths. ha
Vegetable oil production 188 ths. tons
Sugar production 717 ths. tons
Pork production 187 ths. tons
Margarine production 47 ths. tons
Mayonnaise production 58 ths. tons
Meal production 171 ths. tons
Brauni Chaikofsky Russkii Sakhar Mechta Khozyaiki EZHK Gotovim doma Provansal EZHK Schedroe Leto
Source: Company data
Source: Company data 1 Based on volumes in 2014; 2 As of 1H 2015, including land in Primorsky Krai (30 ths. ha); 3 Breakdown is based on figures before adjustments for other revenue and eliminations. Total Revenue and EBITDA figures converted to US$
using official average CBR exchange rate for 2014 (37.97 RUB per USD)
Mon Café
34%
27%
16%
23%
RUB 59.1bn
US$ 1.5bn
Sugar
Meat
Agriculture
Oil & Fats
24%
44%
22%
9%
Revenue EBITDA
RUB 18.1bn
US$ 0.5bn
Oil and Fats Sugar
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716 779
1,020
1,351
1,096 1,144
1,532
565 14%
21%
26%
13%
26%
19%
31% 33%
Revenue EBITDA margin
Ros Agro demonstrated a solid track record of resilient performance
6
Resilient growth trend in revenue2
Average EBITDA margin1
(2012-2014)
Revenue CAGR1
(2012-2014)
2009 2010 2011 2012 2013 2014
• Construction
of breeding
complex in
Belgorod
launched
• 2 sugar plants
in Belgorod
and Tambov
were acquired
• Construction
of breeding
complex in
Belgorod was
completed
• Construction
of breeding
complex in
Tambov began
• Land bank
increased to
380 ths. ha
• 75% stake in
Samara oil
plant was
acquired
• Samara region
plant reached
its full capacity
of 1,050 tons
per day
• Record
harvest – over
497 ths. tons
• IPO on LSE
• Construction
work at
Tambov
Bacon led to
the launch of
22 production
sites
• Shidlovsky
Plant was
launched and
reached its full
capacity in a
year
• Sugar beet
processing
capacity
expanded from
5 ths. tons to
5.5 ths. tons a
day at the
Zherdevskiy
plant
• Construction
of Tambov
Bacon was
completed
• Equipment
upgrades at
sugar plants
• Modernization
of technology
and equipment
in agriculture
division
• Modernization
of equipment
at Fats Plant
1H2015
• Launch of the
slaughterhouse
with an annual
capacity of 2m
heads in
Tambov region
• The Company
entered new
markets of
large cuts,
chilled
processed
products, meat
and bone meal
and industrial
fat
33%
25%
18%
17%
12%
7%
5%
MHP
Ros Agro
Cherkizovo
Illovo Sugar
BRF
JBS
Tyson foods
18%
15%
9%
7%
(1)%
(4)%
(4)%
Ros Agro
JBS
Tyson foods
Cherkizovo
MHP
BRF
Illovo Sugar
2008
Source: Companies data 1 Calendarized to Dec YE, except for Illovo Sugar (Mar YE), all figures converted to US$ at average exchange rates for respective periods; 2 Data for 2008-2010 converted from RUB using historical CBR average exchange rates (RUB per US$): 2008 – 24.81, 2009 – 31.68, 2010 – 30.36
US$ m
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Yekaterinburg Samara
Belgorod Tambov
Belgorod Tambov
Ros Agro’s diversified asset base
7
Ros Agro assets by business segment Location of the assets on the map of Russia
Agriculture
Oil and
Fats
Sugar
Meat
Capacities (annual)
• 6 sugar refineries with total
capacity of c. 35.1 ths. tons
per day
• 13 pig farms, 3 breeding
facilities with total
production capacity of 205
ths. tons
• Total land bank2 of c. 500
ths. ha including c. 380 ths.
ha of arable land
• Margarine: 57.9 ths. tons
• Mayonnaise: 112 ths. tons
• Sunflower seeds: c. 420 ths. tons
• Meal: c. 180 ths. tons
• Oil: c. 190 ths. tons
Source: Company data as of 1H 2015 1 Capacity breakdown for sugar and meat; arable land bank as of 1H 2015 for agriculture segment; 2014 revenue breakdown for oil and fats segment; 2 Including land in Primorsky Krai (30 ths. ha); 3 EZhK – Yekaterinburg Fats Plant,
SAPP – Samaraagroprompererabotka oil extraction plant
BELGOROD
SAMARA TAMBOV
• Oil & fats plant
(EZhK3)
• Oil extraction
plant (SAPP3)
• 3 sugar refineries
• 7 pig farms
• 2 breeding facilities
• 1 compound feed plant
• 1 slaughterhouse
• 3 sugar refineries
• 6 pig farms
• 1 breeding facility
• 1 compound feed plant
SAMARA
YEKATERINBURG
BELGOROD
TAMBOV
Moscow
R U S S I A
YEKATERINBURG
PRIMORSKY KRAI
• Pork production
complex project
• 30 ths. ha of land
bank
• Controlling stake
in soy production
Split by region1
56%
44%
56%
44%
96%
4%
Belgorod & Tambov Far East
58%
42%
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Ros Agro’s footprint across the globe
8
Russia
Denmark
Germany
Azerbaijan
Egypt
Belarus
Moldova
Turkey
Oman
UAE
Iran Afghanistan
China
Mongolia Kazakhstan
Japan
South
Korea
Hong Kong
Vietnam
Thailand
Kyrgyzstan
Tajikistan
Turkmenistan
Uzbekistan
Israel
Russian market Promising markets Existing export markets
The group’s products are sold in more than 80 regions of Russia and are exported to 14 countries
Source: Company data
Investment highlights
Section 2
9
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
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Ros Agro – Key investment highlights
10
• Ros Agro holds market leadership positions across all its businesses…
• …operating a vertically integrated business model
Ros Agro is the most prominent integrated agribusiness company in Russia
• Russia is one of the largest consumers of sugar globally…
• …with Ros Agro being the 2nd largest sugar producer in the country...
• ...operating 6 sugar refineries strategically located near sugar beet farms…
• …and owning a strong branded product line covering different price categories
Second largest sugar producer in Russia
• Russia is the fifth largest pork consumer globally in per capita terms…
• …with Ros Agro being the 2nd largest pork producer in the country…
• …operating state-of-the-art facilities in Belgorod and Tambov regions
Second largest pork producer in Russia
• Russia is the largest consumer of mayonnaise and sunflower oil in the world…
• …with Ros Agro operating as one of the leading players in the market…
• …with a strong portfolio of brands…
• …and manufacturing footprint situated in close proximity to agricultural farmlands
Leading Russian oil and fats producer with a strong portfolio of brands
• Russia accounts for 9% of the world’s arable land…
• … with Ros Agro as one of the largest agricultural companies in the country…
• … with 500 thousand hectares of land under control…
• …providing above market yields across majority of its key crops
One of the largest agricultural companies in Russia
• Ros Agro is led by its best-in-class senior management…
• …supported by a strong management bench
Highly experienced management team
1
2
3
4
5
6
Government support 7
• Consistent government support program
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
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Ros Agro holds leading positions across all its businesses… 1
11
Sugar Meat
Ke
y h
igh
lig
hts
(2
01
4)
Key p
rod
uc
tio
n
me
tric
s (
20
14
)
• Sugar cube producer in
Russia #1
• Market share (by volume) in
sugar cube segment 43%
• Market share in sugar in
Russia 15%
• Sugar producer in Russia #2
• Commercial pork production #2
• Market share in commercial
pork production 6.3%
• Total pork capacity (ths. tons
per year) 205
• Beet sugar production:
• 497,800 tons
• Cane sugar production:
218,800 tons
• Pork production:
• 186,800 tons
• Compound feed production:
565,100 tons
Key f
ina
nc
ials
(2
01
4) RUB 22,464m
(+17.8%)
Reven
ue
(CA
GR
12A
-14A
)
EB
ITD
A
(% m
arg
in)
RUB 4,809m
(21.4%)
RUB 17,751m
(+77.6%)
RUB 8,829m
(49.7%)
Oil & Fats
• Margarine production #1
• Market share in margarine
production 49%
• Market share in mayonnaise
production 9%
• Mayonnaise production #5
• Vegetable oil production:
• 188,400 tons
• Mayonnaise production:
• 57,700 tons
• Margarine production:
• 47,100 tons
RUB 14,920m
(+27.3%)
RUB 1,882m
(12.6%)
Agriculture
• Land bank (in ths. ha) 500
• Arable land (in ths. ha) 380
Crop harvest:
• 3,197,000 tons
RUB 10,710m
(+10.1%)
RUB 4,375m
(40.8%)
• Land owned 42%
2014
1H 2015 data:
Land bank
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
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…operating a vertically integrated business model 1
12
Oil and fats
Sugar Meat
• Completed slaugterhouse in
Tambov region with a capacity
of 2mm heads per year
• Constructing pig farms with
capacity of 300 ths. tons of
pork, fodder plant and
slaughterhouse in Primorsky
Krai
• Construction of the first
phase (capacity of c.100
ths. tons) is scheduled to
start in spring 2016
• 6 sugar plants
In Belgorod and Tambov
regions
• 35.1 ths. tons/day
Maximum processing
capacity for sugar beet
• 2 pork production facilities
In Tambov and Belgorod
regions:
• 13 commercial pig farms
• 3 breeding facilities
• 2 fodder production plants
Granulated and refined sugar
brands
Chaikofsky
Russkii
Sakhar
Brauni
Mon Café
Agriculture
• 6 elevators
For sunflower seed storage (Samara
region, Orenburg region and Far East)
• SAPP oil extraction plant (Samara region) • Surplus meal and oil are exported to other
countries
• EZhK Fats Plant (Yekaterinburg)
• The ingredients are sourced from the local third party
suppliers
Oil and fats product brands
Gotovim doma! Mechta Khozyayki
Provansal Shchedroye leto
Sugar
Provides the Sugar
segment with c.
70% of its raw
material
Meat
Provides the Meat segment with majority
of the raw material used in fodder
production1
Elevators with capacity to store up to 415 ths. tons of grain and 320 ths. tons of outdoor storage 4
1 Share of in-house produced raw material used in fodder production is subject to market environment (prices)
Agriculture
Surplus grain is sold to third
parties
Agriculture
• The Company
also sells its
products in
other regions of
Russia or to
exporters
Oil and fats
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
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5.4 5.5 5.6 5.7
7.1
5.3 4.9 5.2
2011 2012 2013 2014
Total consumption Total production
13
Russia is one of the largest consumers of sugar globally…
• Russia boasts of the highest annual per capita sugar
consumption in the world (42.4 kg per capita vs. 36.5 kg for Brazil,
35.8 kg for UK and 34.0 kg for the US)
• Russian sugar market is stable with annual demand ranging from
5.5m tons to 6.0m tons
• In recent years, Russian Government policy has been aimed at
protecting and developing the domestic beet sugar industry
‒ In 2014, almost 86% of the sugar in Russia was produced from
sugar beet
• High import duties on cane sugar makes it less profitable than sugar
beet
‒ This also explains the low share of sugar produced from imported
cane sugar in the country
Market overview Russia has the highest per capita sugar consumption...
…with stable domestic consumption and production of sugar
4.4
0.7
Beet sugar Raw sugar
5.4
5.9
10.7
11.3
16.2
25.8
Indonesia
Russia
United States
Brazil
China
India
11.6
20.3
21.4
33.2
41.7
55.7
China
India
Indonesia
United States
Russia
Brazil
Annual per capita sugar consumption1, kg
Beet vs Raw sugar (2014)
Source: Rosstat, Soyuzrossakhar - January 2015, Helgilibrary
Source: BMI
42.4
36.5 35.8 34.0 30.3
28.1
6.2
Russia Brazil UK Germany South Africa USA China
2
1 Based on 2011 data
m tons
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
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14
…with Ros Agro being the 2nd largest sugar producer in the country...
Business overview Ros Agro has been consistently increasing its market share
• Ros Agro is the second largest sugar producer with a 15% market share
(2014)
‒ Ros Agro accounted for 33% of the total amount of cane sugar produced
in Russia in 2014 (compared to 23% in 2013)
• Sugar production structure has transformed significantly in the last few
years
‒ In 2011, beet sugar accounted for 41% of sugar production whereas by
2014 beet sugar’s contribution increased to 69%
‒ This transformation also facilitated to significant increase in the EBITDA
margin of sugar segment, i.e. from 5.6% in 2011 to 21.4% in 2014
Ros Agro’s sugar production structure has transformed overtime... ...with beet sugar commanding the majority share in production
2011 2014
56% 41%
3%
From raw cane sugar
From sugar beet
Under tolling agreements
31%
69%
248 270 299 216
463 547 502 498
383 359 353 478
627
57 109 219
83 52 54 62
37
10
714 681 706 756
1,127
614 611
717
2007 2008 2009 2010 2011 2012 2013 2014
From sugar beet From raw cane sugar Under tolling agreements
22%
15% 13%
9% 7%
Pro
dim
ex
Ros A
gro
Dom
inan
t
Su
cd
en
Razg
ula
y
12% 13%
15%
2012 2013 2014
Source: Soyuzrossakhar - January 2015, Company data
ths. tons
EBITDA
margin: 5.6%
EBITDA
margin: 21.4%
Market share in 2014
2
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
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15
...operating 6 sugar refineries strategically located near sugar beet farms…
Belgorod region can process 15,600 tons of sugar beet per day and Tambov region can process 19,500 tons of sugar beet per day
Belgorod
Regional center
Sugar plant
Land bank
30 km radius
60 km radius
Nika
Valuikisakhar
Chernyansky Tambov
Znamensky
Zherdevsky
Nikiforovsky Capacity
Sugar Beet 4,900 t/d
Raw Cane 720 t/d
Capacity
Sugar Beet 5,200 t/d
Raw Cane 720 t/d
Capacity
Sugar Beet 5,500 t/d
Raw Cane 750 t/d
Capacity
Sugar Beet 7,000 t/d
Raw Cane 1,100 t/d
Capacity
Sugar Beet 6,500 t/d
Raw Cane 850 t/d
Capacity
Sugar Beet 6,000 t/d
Raw Cane 720 t/d
Note: t/d refers to tons/day
2
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
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16
…and owning a strong branded product line covering different price categories
Key takeaways Russkii Sakhar and Chaikofsky lead against competitors in
customer ratings
• Product line is represented in the sugar cube and packaged sugar
segments across all of the popular package sizes
• Undisputed leader on the Russian sugar market in the B2C segment
‒ #2 sugar producer in Russia with 15% market share1
‒ Ros Agro has a 43% market share in the sugar cube segment1
Chaikofsky
Extra grade sugar:
• White sugar cubes
• White crystals
Mon Cafe
• Extra grade
• Shaped refined sugar
cubes
Russkii Sakhar
• White sugar cubes
• White sugar crystals
Brauni
• Brown granulated cane
sugar
• Brown cane cubes
Brands Spontaneous
brand recognition
Brand recognition
with prompt
Purchased at
some time
Russkii Sakhar 27 87 74
Chaikofsky 22 46 28
Competitor 1 10 39 20
Competitor 2 10 37 19
Source: Comcon Synovate, monitoring of sugar brand health conducted for Ros Agro in December 2014
2
Source: Soyuzrossakhar - January 2015, Company data
1 Based on volumes in 2014
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
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17
Russia is the fifth largest pork consumer globally in per capita terms…
Market overview Russia in the global pork market
• Russia is the fifth largest pork producer globally (2014)
‒ The country’s per capita pork consumption reaches 20.5kg, lagging
behind only Germany, Poland, Czech Republic and China
• Total pork consumption in Russia declined by 10.5% to 3.4m tons in
2014 compared to 2013 primarily due to the increase in prices in the
domestic market caused by various trade restrictions on imports
• Whereas, pork production in Russia grew on average by 7.7%
each year in 2011-2014 to 3.0m tons, narrowing the gap between
local demand and supply
• Top 20 pork producers in Russia held 59.6%2 of the market in 2014
(compared to 54.2% in 2013), indicating market movement towards
consolidation
Domestic pork consumption and production
3.6 3.8 3.8
3.4
2.4 2.6
2.8 3.0
2011 2012 2013 2014
Domestic pork consumption Production
2.5
2.8
3.1
4.4
8.8
57.0
Japan
Brazil
Russia
Germany
United States
China
Total pork consumption (2014, mm tons)
13.7
20.0
21.8
27.3
40.9
52.6
Brazil
Japan
Russia
United States
China
Germany
Per capita pork consumption (2014, kg)
Source: BMI
Source: OECD, AHDB, Rosstat 1 Based on 2014 data; 2 National Pork Producers Union
Annual per capita pork consumption1, kg
53.9 53.3
43.1
31.5
20.5
Germany Poland Czech Republic China Russia
3
m tons
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
Work
ing A
rea
18
…with Ros Agro being the 2nd largest pork producer in the country…
Ros Agro has a strong foothold in the Russian pork market… …positioned 2nd after Miratorg with a 6.3% market share…
12.7%
6.3% 6.1% 5.6%
3.1% 2.8% 1.6%
Miratorg Ros Agro Cherkizovo Agro-Belogorie
AgrarnayaGruppa
Kopitaniya ProdoManagement
• Ros Agro has been one of the top 5 companies on the Russian
pork market since 2010
‒ It is the second largest pork producer with a market share of 6.3%
(2014)
• In 2014, the Group increased pork production by 38.0% to 187 ths.
tons and compound feed production by 57.4% to 565 ths. tons
• The Group currently caters to demand from businesses and
organisations in 29 regions and plans to expand its geographic
footprint following the launch of the rendering plant and
slaughterhouse
• Group’s agriculture division supplies feed ingredients to the pork
division hence protecting from the unfavourable price changes for
a substantial portion of raw materials
…having witnessed a production CAGR (2008-14A) of 56.5%
13
39 62 64 73
135
187
2008 2009 2010 2011 2012 2013 2014
Pork production by Ros Agro
Source: National Pork Producers Union, “Rating of Largest Pork Producers in Russia in 2014”, January 2015
ths. tons
3
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
Work
ing A
rea
19
…operating state-of-the-art facilities in Belgorod and Tambov regions R
eg
ion
al p
rese
nc
e
• 6 commercial pig farms for 5,100 sows each
• 1 breeding facility for 2,500 sows
• 1 compound feed plant with capacity of 40 tons/hour
• Total sow population of 36 ths. and the overall herd exceeds 400 ths. head
• Total capacity to produce 90 ths. tons of pork per year
Co
mm
en
tary
• 7 commercial pig farms for 4,800 sows each
• 2 breeding facilities for 1,200 and 1,700 sows
• 1 compound feed plant with capacity of 50 tons/hour
• Slaughterhouse (launched in June 2015) with capacity of 1.95m head per year
• Total capacity to produce 115 ths. tons of pork per year
Belgorod region Tambov region
Belgorod
Regional center Pig farm Feed plant
3
Tambov
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
Work
ing A
rea
Russia is the largest consumer of mayonnaise and sunflower oil in the world…
20
Market overview
2.1
3.6
3.1
3.9
2.1 2.1 2.1 2.2
2011 2012 2013 2014
Production Domestic consumption
Stable demand and supply of sunflower oil in the Russian market
• Russia is the largest consumer of mayonnaise and sunflower oil
‒ Per capita consumption of mayonnaise in Russia reached c. 4.4 kg
• Although the consumption of margarine in Russia has been declining
in recent years, growing demand in Central Asia offers a good
additional market for Russian products
• Sunflower oil is the undisputed market leader in Russia followed
by soybean oil
m tons
Russian margarine producers1 (2014) Russian mayonnaise producers1 (2014) Russian sunflower oil processing (2014)
Ros Agro
49%
NMZhK
18%
Solnechniye
produkty
18%
Evdakovsky MZhK
10%
Other
5%
Essen
23%
EFKO
20%
NMZhK
22%
Solnechniye
produkty
16%
Ros Agro 9%
Unilever 4%
Irkutsky MZhK
4%
Other
2% Yug Rusi
23.8%
Solnechniye
produkty
12.6%
Aston 7.1%
EFKO 4.7%
Nefis
Cosmetics
3.1%
Other
28.2%
Bunge 5.6%
Kernel 3.8% NMZhK 7.2%
Ros Agro 3.9%
4
1 Includes only companies in the Oils and Fats Union of Russia
Source: Company data, Oils and Fats Union of Russia, Rosstat
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
Work
ing A
rea
…with Ros Agro operating as one of the leading players in the market…
21
• Ros Agro is the largest producer of margarine and fifth largest producer of mayonnaise in Russia
‒ In 2014, the company strengthened its position on the margarine market by 12% points reaching 49% market share1
‒ Ros Agro has retained a strong market position in mayonnaise (the most popular sauce product in Russia) with 9% market share1
• Ros Agro is the eighth largest processor of sunflower seeds with a market share of 3.9%
‒ In 2014, the company increased its vegetable oil production by 71.3% to 188 ths. tons
Production overview
35 36 41
47
2011 2012 2013 2014
57 55 56
58
2011 2012 2013 2014
67
152
110
188
2011 2012 2013 2014
Margarine (ths. tons)
(‘000 tons)
Vegetable oil (ths. tons)
1 Includes only companies in the Oils and Fats Union of Russia
Source: Company data, Oils and Fats Union of Russia
Business overview Production overview
35 36 41 47 57 55 56 58
67
152
110
188
2011 2012 2013 2014
Margarine
Mayonnaise
Vegetable oil
CAGR 12-14
14.3%
2.7%
11.2%
Mayonnaise (ths. tons)
4
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
Work
ing A
rea
…with a strong portfolio of brands…
22
Mustard
Ketchup
Margarine Mayonnaise Mayonnaise
Margarine Ketchup
Spreads Mayonnaise
Top 15 ketchup brand in
Russia
#1 ketchup brand in Ural
region
Top 20 position in Russian
mustard market
#1 in mustard market for Ural
region
Top 10 mayonnaise brand in
Russia
6% market share in Russia
53% market share in Ural
region
Well developed leading
distribution platform in Ural
region
Leading margarine and
spreads brand in Russia and
Ural region
>50% market share in
margarine market in
Uzbekistan and Tajikistan
Top 3 brand in CIS countries
Leading position in markets
in Azeribaijan and Moldova
Markets mayonnaise,
prepared sauces, spreads,
mustard and vegetable oil
under the brand
4
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
Work
ing A
rea
Yekaterinburg
(EZhK)
Ussuriysk (Primorskaya soya)
…and manufacturing footprint situated in close proximity to agricultural farmlands
23
• Leading plant in the processing industry
in Far East
• Plant produces vegetable oil, mayonnaise,
margarine, toilet and laundry soap, and
soybean meal
• Ros Agro owns 75% stake in Ussuriysky oil
and fat factory "Primorskaya soya"
• 1.25 ths. tons per day capacity for
processing of sunflower seeds
• Main products include unrefined sunflower
oil (pressed and extracted) and high-protein
granulated sunflower seed meal
• Only second Russian plant to receive
international GMP+2 B Good Manufacturing
Practice certificate
• One of the five largest Russian enterprises in the industry and a leader on the CIS market
• More than 50 products manufactured including margarines, mayonnaise, ketchup, mustard and
sunflower oil
• Capacity to produce 57.9 ths. tons of margarine and 112 ths. tons of mayonnaise per year
4
Samara
(SAPP)
Top10 regions by sunflower seeds production
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
Work
ing A
rea
24
Russia accounts for 9% of the world’s arable land…
Market overview
Domestic production and consumption of grains
Source: Rosstat, Food and Agriculture Organization of the United Nations 1 2013 data
• Russia’s population of c. 140m provides a vast market for
agricultural products
• Furthermore, Russia’s geographic position gives an inherent
advantage of catering to the growing demand for agricultural products
in both Asia and the Middle East
• The country’s ban on agricultural inputs from certain countries has
supported growth in the domestic market as domestic producers take
advantage of the lack of competitive imports
• For the last two years, total production of grains in Russia has been
exceeding demand in the domestic market
• Rouble devaluation incentivized exports in 2014 leading to the growth
in net exports to 29 m tons
m tons
5
World’s arable land by country1
11% 11%
9% 8%
5%
India USA Russia China Brazil
52 59 43
52 60
94 68
1 18
71 64
1 21
92 65
1 18
105
68
1 29
2010 ProductionConsumption Losses Net exports 2011 ProductionConsumption Losses Net exports 2012 ProductionConsumption Losses Net exports 2013 ProductionConsumption Losses Net exports 2014Production
Consumption
Losses
Net exports
Grain
inventory
2010YE
Production
Consumption
Losses
Net exports
Grain
inventory
2011YE
Production
Consumption
Losses
Net exports
Grain
inventory
2012YE
Production
Consumption
Losses
Net exports
Grain
inventory
2013YE
Grain
inventory
2014YE
Area harvested (in m ha) #
56.1 56.6 55.7 56.1 55.3
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
Work
ing A
rea
… with Ros Agro as one of the largest agricultural companies in the country…
25
Business overview
• Ros Agro’s farmland is located mainly in the Belgorod and
Tambov regions, in close proximity to the company’s processing
facilities
• Crops cultivated include sugar beet, wheat, barley, peas, soybean,
sunflower and corn
Top 10 holders of agricultural land in Russia1
570 550 500 495
381 353 350 350
320 286
Prodimeks Ros Agro Miratorg Krasniy Vostok Agro GK Dominant
Ros Agro's total and arable land bank
5
Source: Company data, BEFL report on the land lords as of April 2015
1 Ros Agro figure based on Company data as of 1H 2015
Arable land structure (1H 2015)
Barley
25%
Wheat
23%
Soy
19%
Sugar beet
19%
Sunflower
6%
Other
3%
ths. ha
Prodimeks Ivolga
holding Ros Agro AK Bars Miratorg
Avangard-
Agro
Krasniy
Vostok Razgulay Dominant ASB
ths. ha
379 376 412 380
73 87 83 120
452 463 495 500
2012 2013 2014 1H 2015
Arable land Other land
Corn
5%
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
Work
ing A
rea
… with 500 thousand hectares of land under control…
26
Owned
32%
Leased
68%
Owned
42%
Leased
58%
Land ownership structure (2012) Land ownership structure (1H 2015)
Overview of the assets Key regions of operations
• Ros Agro’s key assets include 500 ths. ha of land, 4 elevators with
415 ths. tons of grain capacity and 320 ths. tons of outdoor
storage in sleeves
• Crop farming in the Belgorod region is geared primarily towards
meeting the feed needs of the livestock farming sector
• Ros Agro is the market leader in this region accounting for 25% of
wheat, 21% of barley, 44% of peas and 14% of sunflower seed
production
• Crop farming in Tambov region is favored by black earth soil
• The cultivated land in Primorsky Krai in 2015 was planted with
soybean (79%) and corn (21%)
5
Regional center
Regions of Ros Agro operations
Tambov
region Belgorod
region
Voronezh
region Primorsky
Krai
Voronezh
Tambov
Belgorod
Vladivostok
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
Work
ing A
rea
…providing above market yields across majority of its key crops
27
Operating highlights
5
Source: Rosstat
4.7
3.6 3.5
1.9
1.4
2.5
4.4
2.3
1.4 1.7
Wheat Corn Barley Sunflower Peas
Ros Agro Russia's average
5.9
4.0
6.2
9.8
8.2
6.4
4.9 4.9
15.8
9.0
Wheat Corn Barley Sunflower Peas
2013 2014
Yields 2014 (tons per ha) Prices (RUB/kg)
43%
Source: Company data, Rosstat
5% 33% 8% 3%
x% Share in Ros Agro’s harvest (excluding sugar beet)
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
Work
ing A
rea
Ros Agro is led by its best-in-class senior management…
28
Vadim Moshkovich
Founder, Chairman of the Board of Directors
Vadim Moshkovich
Maxim Basov
Chief Executive Officer
Maxim Basov
• In July 2009, Mr. Basov joined Ros Agro as the General
Director
• From 2006 to 2009, he was the General Director of
Metalloinvest Group as well as the General Director of various
holding companies of the group (including Metalloinvest,
Gasmetal and CK Metalloinvest)
• From 2004 to 2006, he served as the first Deputy Chairman of
the board of directors in Interpipe Limited
• From 2000 to 2003, he held several management positions at
Severstal
• In 1999-2000, he worked at McKinsey & Company
• Mr. Basov graduated from New York University in 1996
• In May 2015, Mr. Moshkovich was appointed the Chairman of
Ros Agro’s Board of Directors
• From 2006 to 2014, he was a member of the Council of
Federation (upper chamber of the parliament of the Russian
Federation) on behalf of the Belgorod region
• In 2001, Mr. Moshkovich became Member of the Board of
Directors of Sobinbank
• In 1999, he became Director General (until 2006) and co-
owner of the group of companies consolidated into Ros Agro
in 2003
• In 1995, Mr. Moshkovich started working in the agribusiness,
first as Head of Shugarimpeks ZAO and then as Head of
Shugarimpeks Trading Company till 1999
• From 1994 to 1995, he served as a Head of Bely Orel (vodka
importing company)
• From 1991 to 1992, he worked at the Moscow Commodity
Exchange
• Mr. Moshkovich graduated from Moscow Institute of Radio
Engineering, Electronics and Automation in 1992
6
218, 231, 197
254, 231, 185
194, 217, 224
240, 190, 198
251, 207, 188
216, 216, 216
Tier: 4
231, 239, 217
254, 239, 210
209, 226, 231
246, 218, 223
253, 230, 219
226, 226, 226
Tier: 5
133, 174, 62
252,175, 23
13, 103, 133
204, 40, 65
241, 97, 34
127, 127, 127
Tier:1
176, 202, 129
253, 203, 104
97, 156, 176
222, 115, 131
246, 152, 111
172, 172, 172
Tier: 3
155, 194, 86
252, 185, 50
16, 125, 164
217, 63, 85
243, 119, 63
144, 144, 144
Tier: 2
Work
ing A
rea
…supported by a strong management bench
29
• Has served as Investment Director, Director for M&A, capital markets, investor relations since
February 2015
• Joined Ros Agro in 2009
• Previously worked at the Investment Bank Renaissance Capital in analytical department
Sergey Tribunsky Investment Director,
Director for M&A, capital
markets, investor relations
Name Title Biography
• Has served as the Chief Financial Officer since January 2015
• Vast experience as a Chief Financial Officer in various companies including Rasstal, Rusal,
Pepsi Co and Wimm Bill Dann
Nailya
Mukhamedzanova Chief Financial Officer
• Served as the Deputy CEO for Legal and Corporate Affairs
• Previously served as the head of the law departments in various companies including
Russian Alcohol Group and Danone
Sergey Koltunov Deputy CEO for Legal and
Corporate Affairs
• Has served as the Head of Human Resources since October 2012
• Previously served as HR Director in Corporation Interpipe Scientific Production Investment
Group (Ukraine)
Aurika Dmitrieva Head of Human
Resources
• Has served as the Head of Internal Audit since October 2010
• Previously served as the Head of Internal Audit in agricultural investment company AGRICO,
and AntantaPioglobal
Dmitry Brekhov Head of Internal Audit
6
Work
ing A
rea
43%
16%
14%
14%
12% Interest rate subsidies
Land development
Crop growing (indirect support)
Animal breeding
Other
RUB 193bn
USD 3.4bn1
16%
15%
14%
12%
12%
32%
Dairy cattle breeding
Finance-payment system
Animal breeding
Agriculture
Infrastructure
Other
RUB 617bn
USD 11.0bn1
Consistent government support program
30
Government support breakdown (2014) Government support by target sector (2015-2020)
Pork sector Sugar sector
Source: Ministry of Agriculture of the Russian Federation Source: Ministry of Agriculture of the Russian Federation
• Nearly all support to sugar producers in the Russian Federation is provided in
the form of market price support (MPS) through import tariff measures, as
opposed to agricultural input or outputs subsidies
• The government introduced the current tariff regime in 2004
• The system is primarily designed to support domestic producers when world
prices are low and price competition with imports is high
• However, when the prices are high and the country relies on imports, a
decrease in tariffs allows consumers to benefit from lower prices
‒ Tariffs range between USD 140 and USD 270 per ton
• The tariff on white sugar imports is set at USD 340 per ton
• Pork sector support employs two major protection mechanisms:
‒ Annual import quota (430 kt of pork)
‒ High import duties for out of quota import
• Import was banned due to veterinary rulings (2012 ban on live pigs from EU,
2013 ban on import of meat from US), and as counter-sanctions measures in
2014:
‒ Ban on pork meat
‒ Ban on processed meat products
1 Converted from RUB using official CBR exchange rate as of 31 December 2014 – 56.26
7
Strategy and business development
Section 3
31
Work
ing A
rea
Expanding
presence in all
business areas
• Ros Agro invested more than RUB 52bn in development of production in 2010-2014
• Ros Agro keeps considering acquiring new assets and investing in projects to expand
existing capacity to maintain leading positions in the Russian sugar, oil and meat
markets
Further
development of
consumer brands
• Ros Agro sees the B2C market as a promising area of the business expansion and
actively invests in the brand lines development
• As a next significant step, the Company plans to increase the level of vertical integration
of its meat segment by producing branded processed meat products and selling them to
final customers
Far East project
• Ros Agro began implementing large-scale investment projects in 2014 intended to create
a major agribusiness cluster in Primorsky Krai, in the Russian Far East
• The Primorsky Krai market has strong potential, because about 50% of the products
currently sold in the region are imported
• Primorsky Krai is also well situated geographically, on the border with China, one of the
biggest food markets in the world
Key pillars of Ros Agro’s development strategy
32 Source: Company data
1
2
3
Work
ing A
rea
36 41 47 55 57 58
2012 2013 2014
Ekaterinburg fat plant (EZhK)
Margarine Mayonnaise
Expanding presence in all business areas (1/2) 1
33
Meat production development Sugar production development1
73
135
187
2012 2013 2014
ths. tons
• In 2014 company increased production in an attempt to benefit from favourable pricing
• Ros Agro has also doubled production of cane sugar becoming the biggest importer and
refiner of raw cane sugar
Land bank development
• Expansion of the land bank is one of the most important strategic goals of Ros Agro
• Company aims to maintain the highest possible share of arable land
379 376 412
73 87 83
452 463 495
2012 2013 2014
Arable land Other land
ths. ha
Sales growth in Oil and Fats segment2
• Company has been steadily increasing sales of its Oil & Fats segment and currently it is the
largest producer of margarine in Russia
• Ros Agro holds #5 position on the Russian mayonnaise market, with Essen, EFKO and NMZhK
being the TOP 3 players
• Group has dramatically increased its pork production capacity over the last couple of years
547 502 498
57 109 219 604 611
717
2012 2013 2014
From sugar beet From raw cane sugar
ths. tons
ths.
tons
Source: Company data 1 Excluding production on tolling agreements 2 Excluding internal sales
136 121
239
99 74
199
2012 2013 2014
Samara oil plant (SAPP)
Meal Raw oil
Work
ing A
rea
Expanding presence in all business areas (2/2) 1
Source: Company data 1 Based on plans for 2015
Expansion to new export markets
Continuous expansion of land bank Introduction of a new oil plant
• The Company plans to further expand sugar beet processing capacity at the
plants in Tambov region
• Installation a pressing line at the Znamensky plant with an annual capacity
of 12 ths. tons
• Expansion of product line. With the launch of the slaughterhouse, the
company entered the new markets of large cuts, chilled processed products,
meat and bone meal and industrial fat
• Construction of pig farming complexes in Tambov Region (RUB c.17bn,
planned start of production in August 2017)
‒ Production at Tambov Bacon will increase by 148 ths. tons of pork in
live weight and slaughterhouse productivity will increase from 350 to 600
head/hour
• Ros Agro plans to produce 200 ths. tons of pork in live weight
• Further expansion land bank in Tambov Region by 30 ths. ha
• Increase in storage capacity for Company’s own products by 60 ths. tons
• The Group is working on the designs of a plant to refine, deodorize and
bottle sunflower oil with a design capacity of 49 ths. tons per year
34
Ongoing projects and plans for the future
• Constructing pig farms with
capacity of 300 ths. tons of
pork, fodder plant and
slaughterhouse in Primorsky
Krai
• Construction of the first phase
(capacity of c.100 ths. tons) is
scheduled to start in spring
2016
Construction
launch:
2016
Construction of pig farming complexes in Primorsky Krai
• Company will continue
expansion to new export
markets
• The markets Ros Agro
considers promising:
Afghanistan, Hong Kong,
Thailand, Vietnam, China,
Japan, South Korea, Iran, UAE,
Oman
Current
export
markets:
14 countries
Promising
markets:
10 countries
• Further expansion of land
bank in Tambov Region
Land bank:
+30 ths. ha1
Storage
capacity:
+60 ths. ha1
• The Group is working on
the designs of a plant to
refine, deodorize and
bottle sunflower oil
Capacity of
new oil plant:
100 ths. tons
per year
• Increase in storage capacity
for Company’s own products
Work
ing A
rea Cost:
RUB 36m
Further development of consumer brands
35
Ongoing projects and plans for the future
• Expand presence in all segments of
sugar cube and packaged sugar market
• The Company plans to begin production
of single-portion
sugar sticks under
the Chaikofsky brand
Completion
date:
December
2015
• Development of Mechta Khozyaiki into a
national brand
• Aim to increase turnover of Mechta
Khozyaiki mayonnaise per point of sale to a
target of 22.8 kg
• The Company plans to launch Mechta
Khozyaiki ketchups
Completion
date:
2016
• Following the launch of
the slaughterhouse, the
Company intends to
bring production of meat
products in the B2C
segment up to design
capacity as quickly as
possible
• Ros Agro plans to
create a brand for
chilled processed
products to ensure long-
term demand for
products in the B2C
segment
Completion
date:
2015
Source: Company data 1 Annualized based on actual figure for 1H 2015; 2 Yekaterinburg fats plant (EZhK) sales only
322 334 318 360
180
2012 2013 2014 2015E
5.0 5.6
6.8 7.1
3.6
2012 2013 2014 2015E
Branded sugar volume development Branded margarine & mayonnaise revenue
development2
Further expansion of presence in all segments of the sugar market
Further development of Mechta Khozyaiki brand Development of B2C brands in the
meat segment
ths. tons RUB bn
2
1 1
Work
ing A
rea
Far East development cluster
36
Overview Exclusive location between major export markets
Current status Medium-term goals
Agriculture
Other
Land
Meat
(Pork)
• In 2014 acquired ca. 26.5 ths.
ha of land
• Received government support
in form of interest rate
subsidy
• Design and feasibility study in
progress
Current crop mix:
• 79% - soybeans
• 21% - corn
• Plans to substantially
increase the land bank
• Begin construction of 100 ths.
tons livestock pork facility in
spring 2016
• To add 100 ths. tons of
capacity in each next 2 years
to reach 300 ths. tons capacity
• Primarily soybeans and corn
• Controlling stake in soy
production facility
• Build a feed factory
• Build a slaughter house
Pork production project in
Primorsky Krai:
• Total investments: ca. USD 1bn
• Capacity: 300 ths. tons
• Export: significant share North China:
• Population: 300 m
South Korea:
• Population: 51 m
Japan:
• Population: 127 m
RUSSIAN FEDERATION
Commercial production launched Projected capacity reached Pig farms open
2018
3
2019
Financial performance
Section 4
37
Work
ing A
rea
Ros Agro summary income statement
38
Income statement based on audited IFRS Commentary
RUB m 2012 2013 2014 1H 2014 1H 2015
Sales 34,064 36,490 59,112 26,645 32,589
Revaluation gain 2,983 3,489 12,244 4,608 4,179
Cost of sales1 (26,364) (31,121) (47,274) (22,195) (24,155)
Gross profit 10,682 8,858 24,082 9,058 12,612
Gross margin 31% 24% 41% 34% 39%
Distribution & selling expenses (2,785) (2,993) (4,472) (1,938) (2,271)
General & administrative expenses (2,490) (2,624) (2,991) (1,141) (2,074)
Other expenses (374) (295) 218 110 417
EBITDA 8,781 6,784 18,069 6,503 10,697
EBITDA margin 26% 19% 31% 24% 33%
D&A (2,600) (3,271) (3,497) (1,476) (1,489)
EBIT 6,182 3,513 14,572 5,027 9,209
EBIT margin 18% 10% 25% 19% 28%
Net income 4,305 3,202 20,177 6,015 7,220
Net margin 13% 9% 34% 24% 22%
Source: Company data
1 Incl. net gain on sugar derivatives
• In 1H 2015 company significantly
increased its revenue and EBITDA
margin mainly due to increased sales
and profitability of sugar, meat and
agriculture segments
• Most prices for Ros Agro products
increased significantly YoY due to
Rouble depreciation and its effect on
import-driven prices for sugar and
pork and export driven prices for
grains and oil
• The sugar segment was the biggest
contributor to revenue and EBITDA
growth in 1H 2015 YoY, mostly due
to significantly increased sale prices
(+46%) associated with Rouble
depreciation
• Ongoing focus on cost control
provided for EBITDA margin increase
to historically high 33% in 1H 2015
despite some gross margin dilution
Work
ing A
rea
EBITDA development overview
39
2013 – 2014 EBITDA development
1H 2014 – 1H 2015 EBITDA development
6 784
3 089
7 1032 014 857 (1 778)
18 069
PPS: pull this data on the chart RUB m
RUB m
6,784
18,069
3,089
7,103 2,014 857
(1,778)
FY 2013 Sugar Meat Agriculture Oil & Fats Eliminations &Other
FY 2014
6,503
10,697
2,712 823
546 67 46
1H 2014 Sugar Meat Agriculture Oil & Fats Eliminations &Other
1H 2015
24%
- EBITDA margin
33%
31%
19%
XX%
- EBITDA margin XX%
Work
ing A
rea
611 717
226 183
2013 2014 1H 2014 1H 2015
From raw cane sugar
From sugar beet
Sugar segment performance
40
Financial performance
Performance highlights
Operating performance
1H 2015 vs. 1H 2014:
Sales (up RUB 3.4bn, +32%)
• The increase in sales was caused by the 46% rise in the sale prices to 39.6 RUB/kg (excl. VAT), primarily owing to
Rouble depreciation
Adjusted EBITDA (up RUB 2.7bn, +156%, margin +15%)
• Substantial growth of EBITDA and EBITDA margin was mainly driven by a surge in the sale prices, yet was partly
offset by an increase in cost per unit as a result of higher prices for raw cane sugar
2013 vs. 2014:
Sales (up RUB 5.5bn, +32%)
• Sales volumes growth was primarily driven by the doubled production from raw cane sugar (the Company became
the biggest importer and refiner of raw cane sugar with 33% market share)
• Increase in sale prices was caused by an increase in the production costs of sugar beet and sugar, a decrease in
sugar beet production after a record harvest in 2013 and Rouble depreciation
Adjusted EBITDA (up RUB 3.1bn, +180%, margin +11%)
• Positive changes in sales volumes and sale prices
• While production of beet sugar has remained almost unchanged since 2013, sugar yield grew to 15.3% relatively
reducing production costs
Transformation of sugar production structure
Source: Company data
2011 2014
17.0
22.5
10.8
14.3
1.7
4.8
1.7
4.5
10%
21% 16%
31%
2013 2014 1H 2014 1H 2015
Revenue EBITDA EBITDA margin
653 752
389 353
24.6 28.4 27.1
39.6
2013 2014 1H 2014 1H 2015
Sales volume (ths. tons)
Sales price (RUB/kg)
31%
69%
From raw cane sugar
From sugar beet
56%
41%
3%
From raw cane sugar
From sugar beet
Under tolling agreements
RUB bn
ths. tons
Production Sales volumes and price
Source: Company data
Work
ing A
rea
135
187
89 92
2013 2014 1H 2014 1H 2015
Group pork production
Meat segment performance
41
Financial performance
Performance highlights
Operating performance
1H 2015 vs. 1H 2014:
Sales (up RUB 1.3bn, +17%)
• The increase in sales was caused by further rise in the sale prices still impacted by ban on imports of live pigs
from Europe, United States and Canada
• Sales volumes (incl. livestock pigs and processed pork) rose by 4% to 83 ths. tons in an attempt to benefit from
the favorable pricing environment
Adjusted EBITDA (up RUB 0.8bn, +26%, margin +3%)
• On the gross profit side, growth was mainly driven by surged sale prices accompanied by an increase in volumes
yet was partly offset by the increase in feed costs
• Increase in general and administrative costs was mainly driven by an increase in payroll costs associated with
slaughter house construction project
2013 vs. 2014:
Sales (up RUB 10.3bn, +139%)
• Production growth was primarily driven by the company’s aggressive expansion of production capacity and ban on
imports of live pigs. Increase in sale prices was caused by the decline in the supply of meat on the domestic
market (due to imports ban) and Rouble depreciation
Adjusted EBITDA (up RUB 7.1bn, +412%, margin +26%)
• An increase in sale prices was accompanied by an increase in volumes and a decrease in feed costs
• Despite the growth of prices for feed ingredients, veterinary drugs and energy resources compared to 2013, the
Group managed to reduce production costs by about 2%. Thanks to its own agriculture division, the Group is
protected from unfavourable price changes for a substantial portion of raw materials
• The Group’s meat business is comprised of 13 pig farms and 3 breeding facilities in Central
Russia: the Belgorod and Tambov regions
Production capacity
Production Sales volumes and price
Belgorod
Tambov
Number of
farms
6
7
Production
capacity (tons pa)
90,000
115,000
Farms capacity
(sows)
30,600
33,600
Note: as of June, 2015
7.4
17.8
7.2 8.5
1.7
8.8
3.1 4.0
23%
50% 43% 47%
2013 2014 1H 2014 1H 2015
Revenue EBITDA EBITDA margin
115
182
80 83
63.6
95.9 87.3
100.9
2013 2014 1H 2014 1H 2015
Sales volume (ths. tons)
Sales price (RUB/kg)
RUB bn
ths. tons
Source: Company data
Work
ing A
rea
32%
68%
Owned
Leased
Agriculture segment performance
42
Financial performance
Performance highlights
Operating performance
1H 2015 vs. 1H 2014:
Sales (up RUB 0.6bn, +38%)
• Revenue growth was driven by a significant increase in sales volumes of wheat (+126%) and increased sale
prices of all crops
• Main negative factor was a decrease in sales volumes of barley (-6%), sunflower seeds (-97%) and corn (-62%)
Adjusted EBITDA (up RUB 0.5bn, +110%, margin +16%)
• Growth was mainly driven by an increase in sale prices but was partly offset by increased transportation and
payroll costs mainly as result of transported sales volumes increase
2013 vs. 2014:
Sales (up RUB 2.2bn, +26%)
• A decline in sales volumes was primarily driven by sugar beet (-20.6% YoY) due to lower harvest volumes in
comparison with 2013
• Sales were mainly driven by an increase in prices of sugar, sunflower seeds and other products on the back of
Rouble depreciation
Adjusted EBITDA (up RUB 2.0bn, +85%, margin +13%):
• The most profitable crop in the reporting period was sunflower, which saw strong demand and a substantial
increase in prices on the domestic market. Margins were high on wheat, for which demand remains strong on the
domestic market and among exporters, as well as on sugar beet thanks to the increase in yield
• The key assets of the Group’s agriculture division are located in the Belgorod and Tambov
regions and include:
‒ Land bank: 500 ths. ha (380 ths. ha arable)2
‒ Elevators: capacity of 415 ths. tons of grain and 320 ths. tons of outdoor storage in sleeves
Land bank
Ownership structure (2012YE) Ownership structure (1H 2015)
Prices (RUB/kg)
2013 2014 1H14 1H15
Sugar
beet 1.5 2.1 1.6 -
Wheat 5.9 6.4 5.7 8.4
Barley 6.2 4.9 5.5 9.3
Sunflower
seeds 9.8 15.8 12.8 20.9
Peas 8.2 9.0 8.2 11.1
Corn 4.0 4.9 5.0 7.0
Source: Company data as of 1H 2015 1 Including land in Primorsky Krai (30 ths. ha total)
8.5
10.7
1.6 2.2 2.4 4.4
0.5 1.0
28%
41% 31%
47%
2013 2014 1H 2014 1H 2015
Revenue EBITDA EBITDA margin
42% 58%
Owned
Leased
2012:
2013:
2014:
RUB bn
2013 2014 1H14 1H15
Sugar
beet 2,935 2,330 12 -
Wheat 408 299 57 129
Barley 123 249 95 89
Sunflower
seeds 35 99 32 1
Peas 19 34 6 5
Corn 42 41 16 6
Sales volumes (ths. tons)
Work
ing A
rea
1H 2015 vs. 1H 2014:
Sales (up RUB 0.2bn, +3%)
• EZhK2: sale prices of margarine increased by 29% which was partly offset by 3% sales volumes decrease, while
sale prices of mayonnaise increased by 25% on the back of 9% sales volumes growth
• SAPP2: sales volumes of sunflower oil and meal decreased by 56% and 39% respectively due to the trading
operations and tolling of sunflower seeds on the related party’s production facilities in 1H 2014 that was not the
case in 1H 2015. This was compensated by a significant increase in sale prices of all main products of the
segment and acquisition of the Far East plant (engaged in buying and processing of soya beans)
Adjusted EBITDA (up RUB 0.1bn, +7%, margin +0.5%)
• EZhK2: increase in sale prices was offset by 59% increase in cost of raw oil
• SAPP2: a significant increase in costs of sunflower seeds (+75%) was compensated by a significant increase in
sale prices
2013 vs. 2014:
Sales (up RUB 6.0bn, +67%)
• EZhK2: sales volumes of margarine and mayonnaise increased by 16% and 1% accompanied by the prices
increase of 11% and 3% respectively
• SAPP2: a significant increase in sales volumes of raw oil (+107%) and meal (+98%) was due to the trading
operations and tolling of own sunflower seeds on the related party’s production facilities
Adjusted EBITDA (up RUB 0.9bn, +84%, margin +1%)
• EZhK2: an increase in sale prices and volume; cost of raw oil decreased by 19%, partly offset by increase in
advertising expenses by RUB 266m
• SAPP2: 71% growth in raw oil production volume and 61% growth in meal production volume; cost of sunflower
seeds decreased by 7%
Oil and Fats segment performance
43
Financial performance1
Performance highlights
3.3
8.1
4.9 3.8
0.6 1.4 0.8 0.8
19% 17% 17% 21%
2013 2014 1H 2014 1H 2015
Revenue EBITDA EBITDA margin
Key product sales
57 58 25 27
56.8 59.0 57.5 71.5
2013 2014 1H 2014 1H 2015
Sales volume (ths. tons)
Sale price (RUB/kg)
74 199 133
58
31.5 29.5 27.9 45.1
2013 2014 1H 2014 1H 2015
Sales volume (ths. tons)
Sale price (RUB/kg)
121 239 142
87
7.8 9.0 8.5 13.1
2013 2014 1H 2014 1H 2015
Sales volume (ths. tons)
Sale price (RUB/kg)
Margarine
Mayonnaise
Oil3
Meal
41 47 20 20
50.8 54.5 51.1
66.2
2013 2014 1H 2014 1H 2015
Sales volume (ths. tons)
Sale price (RUB/kg)
RUB bn
Source: Company data 1 In 1H 2015 and 1H 2014 intra-segment elimination adjustments allocated to Samara oil plant
2 EZhK – Yekaterinburg Fats Plant, SAPP – Samaraagroprompererabotka oil extraction plant
3 Sales to third parties
5.6 6.8
3.1 3.6
0.4 0.5 0.1 0.2
7% 7% 5%
6%
2013 2014 1H 2014 1H 2015
Samara oil plant (SAPP) Yekaterinburg fats plant (EZhK)
Work
ing A
rea
Ros Agro debt portfolio overview
44
• Gross debt increased by RUB 2.7bn (up 12%) to RUB 25bn
‒ 97% of total gross debt is subsidized
‒ Effective average interest rate of 2.6%
‒ All debt is RUB denominated
• Since 2014YE net debt has decreased further by 58% to RUB 1.5bn
• In 1H 2015 the company continued to benefit from the state agriculture subsidies program
‒ RUB 616m of subsidies received covered 37% of gross interest expense
• Net other financial income/(expenses) increased by RUB 589m compared to 1H 2014
‒ RUB 813m of financial FOREX loss in 1H 2015 compared to RUB 232m loss in 1H 2014
Total debt breakdown
Conservative leverage Cheap financing and abundant cash available
Secure coverage of interest payments
14.6
3.6 1.5
2.1x
0.2x 0.1x
2013YE 2014YE 30 June 2015
Net debt Net debt/LTM EBITDA
RUB bn
1,380 154 41 1,034
2,244
2,134
1,171
616
5x
117x 159x
10x
2013 2014 1H 2014 1H 2015
Net interest expense Interest expense reimbursed
EBITDA/Net interest expense
RUB m By Maturity By Lender
3,624
1,212
68%
32%
Short-term Long-term
RUB
25bn 54% 44%
2%
1%
Alfa-bank Sberbank Locko-bank VTB
2,288
Source: Company data as of 30 June, 2015
1,650
RUB
25bn
Note: as of 30 June 2015
Work
ing A
rea
Ros Agro working capital and CAPEX overview
45
Net working capital dynamics Commentary
4,249 5,208
2,222
3,707
11.6% 8.8% 8.3%
11.4%
2013 2014 1H 2014 1H 2015
CAPEX CAPEX/Sales
CAPEX3 development Commentary
• Net working capital changes are mainly driven by
seasonality factor of operations
• In 2014 c.53% of trade and other receivables were
denominated in US dollars and Euros while 97% of
trade and other payables were denominated in
Roubles
• In 1H 2015 CAPEX primarily comprised of:
‒ Purchases of machinery and equipment in
agricultural segment in the amount of RUB
1.4bn (+65% YoY)
‒ Modernization of sugar plants in the amount of
RUB 1.3bn (+105% YoY)
‒ Construction of a slaughter house in Tambov
region in the amount of RUB 0.7bn (-2% YoY)
RUB m 2013 2014 1H 20152
Trade and other receivables 1,771 2,348 2,815
Receivable days 17.7 14.5 15.8
+
Inventories 13,865 15,509 10,585
Inventory days 162.6 119.7 78.5
-
Trade and other payables 2,353 2,772 6,628
Payable days 27.6 21.4 49.1
Net working capital 13,284 15,084 6,772
Cash cycle days1 152.7 112.8 45.1
RUB m
Source: Company data
Note: 1 Cash cycle days calculated as follows:
a) Receivable days calculated for each period by dividing the respective working capital item from balance sheet by total revenue and then multiplying it by number
of days in the year
b) Inventory days calculated as an inventory line item divided by COGS and then multiplied by number of days in the year
c) Payable days calculated as the respective working capital item from balance sheet divided by COGS and multiplied by number of days in the year 2 Calculated on the basis of LTM Sales & COGS
3 CAPEX figures include cash outflows for purchases of property, plant and equipment and inventories intended for construction
Appendix
Section 5
46
Work
ing A
rea
Ros Agro balance sheet and cash flow statement
47
Cash flow statement1 Balance sheet
RUB m FY13 FY14 1H 2015
Current assets 38,146 43,910 51,115
Cash and cash equivalents 2,673 10,316 5,318
Short-term investments 15,267 8,864 18,065
Trade and other receivables 1,771 2,348 2,815
Inventories 13,865 15,509 10,585
Other 4,570 6,873 14,332
Non-current assets 34,984 37,596 40,586
Property, plant and equipment 28,365 29,520 32,818
Other 6,619 8,076 7,768
Current liabilities 22,171 17,454 25,617
Short-term borrowings 18,144 12,500 16,873
Trade and other payables 2,353 2,772 6,628
Taxes 1,674 2,182 2,115
Non-current liabilities 16,394 12,233 10,152
Long-term borrowings 14,369 9,806 8,110
Government grants 1,735 1,963 1,792
Taxes 290 464 250
Equity 34,565 51,819 55,932
Share capital 11,342 11,353 11,355
Retained earnings 23,214 40,160 44,564
Non-controlling interest 8 307 14.31
RUB m FY13 FY14 1H 2014 1H 2015
Cash flows from operating activities
Profit before taxation 3,533 20,892 6,278 7,954
Depreciation and amortization 3,271 3,497 1,476 1,489
Interest expense 3,624 2,288 1,208 1,650
Government grants (2,918) (2,822) (1,420) (1,096)
Interest income (2,023) (1,011) (462) (466)
Revaluation of biological assets, net (504) (1,808) (1,721) (598)
Changes in working capital (1,042) (823) 1,643 741
Income tax paid (124) (1,054) (617) (1,213)
Other 964 (3,484) 1,072 1,302
Net cash from operating activities 4,780 15,677 7,457 9,762
Cash flows from investing activities
Purchases of property, plant and
equipment (4,233) (5,206) (2,221) (3,707)
Purchases of other intangible assets (97) (152) (58) (59)
Change in cash on bank deposits 13,999 12,464 8,805 (16,353)
Purchases of bonds - (5,244) (5,244) -
Cash from promissory notes, net 168 1,100 - -
Cash from loans, net (215) (608) (384) (587)
Interest received 2,153 1,240 599 297
Other 148 (713) (42) (59)
Net cash from investing activities 11,924 2,881 1,455 (20,468)
Cash flows from financing activities
Repayment of borrowings, net (15,733) (11,293) (7,911) 2,686
Interest paid (4,127) (2,296) (1,127) (1,427)
Dividends paid (0) (3,207) (1,000) (2,760)
Other 3,788 3,004 1,234 8,478
Net cash used in financing activities (16,072) (13,791) (8,803) 6,977
Net effect of exchange rate changes 21 2,878 (155) (1,269)
Net increase in cash and cash
equivalents 653 7,644 (46) (4,998)
Cash and cash equivalents at the
beginning of the year 2,020 2,673 2,673 10,316
Cash and cash equivalents at the end
of the year 2,673 10,316 2,627 5,318
Source: Company data
1 Change in cash on bank deposits, purchases of bonds, interest received and cash from loans classified as cash flows from investing activities
Work
ing A
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Trading Multiples of Comparable Companies
48
Sector Company Country Market Cap
(US$ m)
EV / EBITDA P / E
Div. Yield1
2015E 2016E 2015E 2016E
Ros Agro Russia 1,121 3.1x 3.0x 4.1x 4.1x 7.4%2
Core peers
Cherkizovo Russia 600 4.8x 4.0x 6.1x 5.2x 12.8%
MHP Ukraine 967 4.4x 4.4x 6.1x 4.1x 5.0%
Kernel Ukraine 1,072 3.5x 3.9x 6.8x 5.0x 1.8%
Average 4.2x 4.1x 6.3x 4.7x 6.6%
Deve
lop
ing
ma
rke
ts p
ee
rs
Oil producers
KLK Berhad Malaysia 5,637 16.6x 14.4x 27.0x 22.9x 2.4%
IOI Group Malaysia 6,181 18.0x 17.4x 25.1x 25.1x 2.1%
Wilmar International Singapore 14,039 13.8x 12.4x 12.2x 11.0x 2.6%
Golden Agri-Resources Singapore 3,536 12.6x 10.4x 19.6x 14.5x 1.5%
Average 15.2x 13.7x 21.0x 18.4x 2.1%
Sugar producers
Illovo Sugar South Africa 579 5.6x 7.4x 9.4x 14.7x 5.1%
Cosan Brazil 2,471 4.9x 4.4x 26.5x 13.5x 3.2%
Average 5.2x 5.9x 17.9x 14.1x 4.1%
Meat producers
Industrias Bachoco Mexico 2,816 5.5x 7.1x 10.7x 14.3x 1.9%
Charoen Pokphand Thailand 4,489 16.4x 13.7x 31.4x 17.0x 3.6%
BRF – Brasil foods Brazil 15,000 11.8x 10.5x 21.4x 17.0x 1.6%
JBS Brazil 10,791 5.5x 4.8x 8.9x 9.4x 1.1%
Average 9.8x 9.0x 18.1x 14.5x 2.1%
Developed market
peers
Bunge USA 10,658 7.2x 6.7x 13.0x 10.8x 1.9%
Noble Group Hong Kong 2,420 7.3x 6.7x 5.9x 5.1x 9.6%
Average 7.3x 6.7x 9.5x 8.0x 5.8%
Source: Bloomberg as of 29 October 2015 1 Sum of the dividends over the last 12 months divided by current market capitalization 2 Ros Agro dividend policy assumes 25% NI payout ratio (IFRS basis) twice a year – after 1H and FY results