ROS AGRO PLC · "NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN AUSTRALIA, CANADA, THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA, JAPAN, SOUTH AFRICA,

"NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN AUSTRALIA, CANADA, THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA, JAPAN, SOUTH AFRICA, THE RUSSIAN FEDERATION OR THE UNITED STATES."

ROS AGRO PLC

Presentation for Investors

27 November 2014

9M 2014 and Q3 2014


2

Table of contents

1. ROS AGRO PLC – summary key indicators 9M 2014 and Q3 2014(IFRS)

2. Business Overview by divisions (IFRS)

3. Additional information


Summary Key indicators

(IFRS)

9M 2014 vs. 9M 2013

Q3 2014 vs. Q3 2013

3


2,967

2,299

5,316 228

919 (485) 11,245

13%

27%

0%

5%

10%

15%

20%

25%

30%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

EBITDA Actual

9M 2013

Sugar

Meat

Agriculture

Oil&Fats

Adjustments &

other

EBITDA Actual

9M 2014

EBITDA m

argin

RR m

illion

Adjusted EBITDA Actual 9M 2014 vs Actual 9M 2013

23,120

4,682

8,235 640

6,186 (1,476) 41,386

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Reve

nue

Actu

al 9M

201

3

Su

ga

r

Me

at

Ag

ricu

ltu

re

Oil&

Fa

ts

Ad

justm

en

t

s &

oth

er

Reve

nue

Actu

al 9M

201

4

RR

millio

n

Net revenue (IFRS) Actual 9M 2014 vs. Actual 9M 2013

4

Summary key indicators (IFRS)Net revenue, Adjusted EBITDA (Actual 9M 2014 vs Actual 9M 2013)

Net Revenue increased by RR 18,266 million (+79%) due to:

• Sugar sales increased by RR 4,682 million (+39%) due to sales volume and price

growth.

• Meat sales increased by RR 8,235 million (+182%) due to a significant increase both

in sales volume and prices of pork.

• Agriculture sales increased by RR 640 million (+22%) as a result of an increase in

sugar beet, barley, corn and sunflower seeds sales volume and an increase in sugar

beet sale prices that was partly offset by a decrease in grain sale prices and a

decrease in wheat sales volume.

• Oil&Fats sales increased by RR 6,186 million (+120%) mainly due to a significant

increase in 3rd parties sales volumes of raw oil and meal, which was partially offset

by lower sales prices of raw oil and meal.

Adjusted EBITDA margin increased from 13% in 9M 2013 up to 27% in 9M 2014.

Adjusted EBITDA increased by RR 8,277 million or 279%.

All divisions showed an increase in Adjusted EBITDA.

For more details, look “Business overview by divisions (IFRS)” section

Comments

+79%

(RR +18,266 million)

+279%

(RR +8,277 million)


1,387

851

2,633 111 177 (417)

4,742

16%

32%

0%

5%

10%

15%

20%

25%

30%

35%

0

1,000

2,000

3,000

4,000

5,000

6,000

EBITDA Actual

3Q 2013

Sugar

Meat

Agriculture

Oil&Fats

Adjustments &

other

EBITDA Actual

3Q 2014

EBITDA m

argin

RR

m

illio

n

Adjusted EBITDA Actual 3Q 2014 vs Actual 3Q 2013

8,776

1,222

3,518 222

1,745 (743) 14,741

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Reve

nue

Actu

al 3Q

2013

Suga

r

Me

at

Agriculture

Oil&

Fats

Adju

stm

ents

& o

ther

Reve

nue

Actu

al 3Q

2014

RR

m

illion

Net revenue (IFRS) Actual 3Q 2014 vs. Actual 3Q 2013

5

Summary key indicators (IFRS)Net revenue, Adjusted EBITDA (Actual Q3 2014 vs Actual Q3 2013)

Net Revenue increased by RR 5,965 million (+68%) due to:

• Sugar sales increased by RR 1,222 million (+27%) due to an increase in sales

volume and growth in sales prices.

• Meat sales increased by RR 3,518 million (+175%) due to a significant increase in

sales volume and prices.

• Agriculture sales increased by RR 222 million (+13%) mainly due to increased

sales volumes of grains (excluding wheat) and sugar beets and an increase in

sugar beets sale prices, that was partially offset with a decrease in sales prices of

barley and corn and sales volume of wheat.

• Oil&Fats sales increased by RR 1,745 million (+108%) mainly due to an increase

in sales volumes of raw oil and meal.

Adjusted EBITDA margin increased from 16% in Q3 2013 up to 32% in Q3 2014.

Adjusted EBITDA increased by RR 3,355 million or 242%.

All divisions showed an increase in Adjusted EBITDA.

For more details, look “Business overview by divisions (IFRS)” section

Comments

+68%

(RR +5,965 million)

+242%

(RR +3,355 million)


RR million

Business division Actual 9M 2014 Actual 9M 2013 Units %

Sugar 1,126 633 493 78

Meat 961 1,063 (102) (10)

Agro 1,689 661 1,028 156

Oil & Fats 148 154 (6) (4)

Others 4 1 3 170

Total: 3,928 2,513 1,415 56

Variances

2.02.1

0.3

0.0х

1.0х

2.0х

3.0х

31 Dec 2012 31 Dec 2013 30 September 2014

Net debt / LTM EBITDA

6

Summary key indicators (IFRS)Debt profile (as of 30 September 2014)

• Gross debt decreased by RR 11,863 million (-36%) to RR 20,650 million.

• Net debt decreased by RR 10,640 million (-73%).

• In 9M 2014 Company continued to enjoy benefits from the state

agriculture subsidies program. RR 1,672 million of subsidies received

covered 96% of gross interest expense. Interest income decreased by

52% to RR 771 million.

• 87% of total gross debt is subsidized.

• The company maintained healthy debt structure, 88% of net debt relates

to amounts with more than 3 years maturity.

• Major banks and their shares in the Group’s credit portfolio (excl. non-

bank loans and state budget loans): Sberbank (67%), Alfa bank (19%),

Rosselkhozbank (12%), Locko-bank (2%).

Comments

Debt position and liquidity management

Net finance expense

CAPEX program 9M 2014 vs. 9M 2013*

* CAPEX figures include cash outflows for purchases of property, plant and equipment and inventories intended for construction.

Units %

Gross debt 20,650 32,513 (11,863) (36)

Short term borrowings 10,015 18,144 (8,130) (45)

Long term borrowings 10,635 14,369 (3,733) (26)

Net debt 3,936 14,576 (10,640) (73)

Short term borrowings, net (307) 904 (1,211) -

Long term borrowings, net 4,243 13,672 (9,429) (69)

Adjusted EBITDA (LTM) 15,061 6,784 8,277 122

Net debt/ Adjusted EBITDA (LTM) 0.3 2.1 -1.9

in RR million30 September

2014

31 December

2013

Variance

30 September

2014

30 September

2013Units %

Net interest expense (68) (1,453) 1,385 95

Gross interest expense (1,740) (2,718) 978 36

Reimbursement of interest expense 1,672 1,265 407 32

Interest income 771 1,604 (833) (52)

Other financial expenses, net 406 (59) 465 -

Total net finance expense 1,109 92 1,017 1,105

in RR million

VarianceNine months ended


Business Overview by division

(IFRS)

9M 2014 vs. 9M 2013

Q3 2014 vs. Q3 2013

7


Comments

Sugar

Key indicators Actual 9M 2014 vs Actual 9M 2013 (IFRS)

8

Sales (RR +4,682 million, +39%):

The increase in sales is caused by significant growth of sales volume from 467

ths tn to 586 ths tn (+26%) and 13% increase in sales price from 24.4 ths rur/tn

to 27.4 ths rur/tn (excl. VAT).

Adjusted EBITDA (RR +2,299 million, +429%, margin +13%):

• Positive changes in sales volume and sale prices.

• An increase in profit from the economic hedge of raw sugar (RR +170

million).

8

11,896

536

16,578

2,8355%

17%

0%

5%

10%

15%

20%

25%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Sales EBITDA Sales EBITDA

Actual 9M 2013 Actual 9M 2014

EB

ITD

A m

arg

in

RR

mil

lio

n

Sugar: sales, Adjusted EBITDA and Adjusted EBITDA

margin

259

390

467

586

24.36

27.42

22.50

23.00

23.50

24.00

24.50

25.00

25.50

26.00

26.50

27.00

27.50

28.00

0

100

200

300

400

500

600

700


tho

us

an

d r

ub

les

pe

r to

n

tho

us

an

d t

on

s

Sugar: volumes and prices

Production volume Sales volume Prices (excl. VAT)


Comments

Sugar

Key indicators Actual Q3 2014 vs Actual Q3 2013 (IFRS)

9


• An increase in sales volumes of sugar by 21 ths tn (+12%).

• A 13% increase in sales price from 24.9 ths rur/tn to 28.1 ths rur/tn (excl.

VAT).

Adjusted EBITDA (RR +851 million, +349%, margin +14%):

• Increase in sales volume and sale prices.

• An increase in profit from the economic hedge of raw sugar (RR +38

million).

9

4,522

244

5,744

1,095

5%

19%

0%

5%

10%

15%

20%

25%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000


Actual 3Q 2013 Actual 3Q 2014

EB

ITD

A m

arg

in

RR

mil

lio

n

Sugar: sales, Adjusted EBITDA and Adjusted EBITDA

margin

117

164

176

197

24.87

28.12

23.00

24.00

25.00

26.00

27.00

28.00

29.00

0

50

100

150

200

250

Actual Q3 2013 Actual Q3 2014

tho

us

an

d r

ub

les

pe

r to

n

tho

us

an

d t

on

s

Sugar: volumes and prices

Production volume Sales volume Prices (excl. VAT)


3,333

1,185

5,620

7,133

1,005

(108)

2,775

3,438

30%

49%48%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Belgorod Meat Tambov Meat Belgorod Meat Tambov Meat


EB

ITD

A m

arg

in

RR

mil

lio

n

Meat: sales and Adjusted EBITDA in Belgorod and Tambov

Sales to 3rd parties and other segments Adjusted EBITDA Adjusted EBITDA margin

10

Meat



• sales volume of livestock pigs rose by 58 ths tn (+79%) from 73 ths tn to 130 ths

tn as a result of the launch of the new pig breeding facilities in 2013;

• pork sale price increased by 34.2 ths rur/tn (+55%) from 61.7 ths rur/tn to 95.9

ths rur/tn (excl. VAT).

Adjusted EBITDA (RR +5,316 million, +593%, margin +29%) mainly due to:

• an increase in gross profit RR +5,427 million (excl. revaluation of pigs and

depreciation) as a result of an increase in sales prices accompanied by an

increase in volumes and a decrease in feed costs;

• a decrease by RR 76 million in government grants for partial reimbursement of

operating costs (RR 172 million in 9M 2014 compared to RR 248 million in 9M

2013).

Comments

4,518

897

12,753

6,213

20%

49%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000



EB

ITD

A m

arg

in

RR

mil

lio

n

Meat: sales, Adjusted EBITDA and Adjusted EBITDA

margin

93

73

137130

61.7

95.9

20

30

40

50

60

70

80

90

100

0

20

40

60

80

100

120

140

160

Production

volume

Sales volume Production

volume

Sales volume


tho

us

an

d r

ub

les

pe

r to

n

tho

us

an

d t

on

s

Meat: volume and prices of livestock pigs

Livestock pigs volume Livestock pigs price (excl. VAT)


1,320

691

2,271

3,257

384

58

1,225

1,849

29%

8%

54%57%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Belgorod Meat Tambov Meat Belgorod Meat Tambov Meat


EB

ITD

A m

arg

in

RR

mil

lio

n

Meat: sales and Adjusted EBITDA in Belgorod and Tambov


11

Meat

Key indicators Actual Q3 2014 vs. Actual Q3 2013 (IFRS)


• sales volume of livestock pigs rose by 22 ths tn (+75%);

• pork sale price increased by 40.0 ths rur/tn (+57%) from 69.6 ths rur/tn to 109.5 ths

rur/tn (excl. VAT).

Adjusted EBITDA (RR +2,633 million, +596%, margin +34%) mainly due to:

• an increase in gross profit RR +2,517 million (excl. revaluation of pigs and depreciation)

as a result of an increase in sales prices accompanied by an increase in volumes and a

decrease in feed costs;

• RR 146 million of subsidies for partial compensation of feed costs received in Tambov

in Q3 2014 (Q3 2013: nil).

Comments

2,010

442

5,528

3,075

22%

56%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

0

1,000

2,000

3,000

4,000

5,000

6,000



EB

ITD

A m

arg

in

RR

mil

lio

n

Meat: sales, Adjusted EBITDA and Adjusted EBITDA

margin

39

29

4850

69.6

109.5

0

20

40

60

80

100

120

0

10

20

30

40

50

60

Production

volume


volume

Sales volume


tho

us

an

d r

ub

les

pe

r to

n

tho

us

an

d t

on

s

Meat: volume and prices of livestock pigs

Livestock pigs Livestock pigs price (excl. VAT)


Sugar beet;

16%

Wheat; 21%

Barley; 22%

Sunflower;

10%

Pea; 5%

Corn; 4%

Soy; 9%

Fallow; 11%

Other; 3%

9M 2014: arable land structure

Comments

Agriculture


12

Sales (RR +640 million, +22%):

The major positive factors are:

• an increase in sales volumes of sugar beet, barley, corn and sunflower seeds;

• a 19% increase in sales price of sugar beet.

The major negative factors are:

• a decrease in sales prices of crop production (-27% in barley, -31% in corn, -13% in

sunflower seeds, -2% in wheat, -3% in peas sale prices as compared to 9M 2013);

• a significant decrease in sales volumes of wheat (-41%).


• SG&A expenses decreased by RR 231 million. The main decrease is attributed to payroll

costs within general and administrative expenses – decrease by RR 124 million from RR

283 million in 9M 2013 to RR 159 million in 9M 2014 (Changes in the organization

structure led to reclassification of costs from administrative expenses into costs of

production).

12

Agriculture: sales volume and prices breakdown by products

*according to the information as at 30.09.2014 and

30.09.2013 respectively

2,963

907

3,603

1,135

31%

32%

25%

26%

27%

28%

29%

30%

31%

32%

33%

34%

35%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000



EB

ITD

A m

arg

in

RR

mil

lio

n

Agriculture: sales, Adjusted EBITDA and Adjusted

EBITDA margin

379 387

81 88

0

100

200

300

400

500


tho

us

an

d h

a

Total and cultivated land resources*

Cultivated land Other land

Actual Actual Actual Actual

9M 2014 9M 2013 Units % 9M 2014 9M 2013 Units %

Total 1,176 1,017 159 16 - - - -

livestock products 8 10 (2) (23) -

meat 0.6 1.1 (0.4) (40) 49.8 48.1 1.7 4

milk 7 9 (2) (21) 22.0 16.6 5.4 32

crops 1,168 1,006 162 16 -

sugar beet 895 771 124 16 1.8 1.5 0.3 19

wheat 97 165 (68) (41) 5.7 5.8 (0.1) (2)

barley 99 61 38 61 5.4 7.4 (2.0) (27)

sunflower 32.4 0.1 32.3 n/a 12.8 14.7 (1.9) (13)

pea 8 3 6 196 8.2 8.5 (0.2) (3)

corn 20.8 0.2 20.6 n/a 5.0 7.3 (2.3) (31)

soy 0.3 1 (1) (69) 14.1 15.4 (1.3) (8)

other 15 4 11 243 4.5 5.4 (1.0) (18)

VariancesItem

Sales volume, thousand tons Average price (excl. VAT), ths rur/tn

Variances


Comments

Agriculture


13

Sales (RR +222 million, +13%):

The major positive factors are:

• an increase in sales volumes of sugar beet, barley, corn and peas;

• an increase in sales prices of sugar beet, wheat and peas.

The major negative factors are a decrease in sales volume of wheat and sales prices of barley

and corn.


• An increase in gross profit by RR 49 million (excl. revaluation of crops and depreciation).

• Distribution and selling expenses decreased by RR 21 million, General and Administrative

expenses decreased by RR 74 million;

13

Agriculture: sales volume and prices breakdown by products

1,762

527

1,984

638

30%

32%

25%

26%

27%

28%

29%

30%

31%

32%

33%

34%

35%

0

500

1,000

1,500

2,000

2,500



EB

ITD

A m

arg

in

RR

mil

lio

n

Agriculture: sales, Adjusted EBITDA and Adjusted

EBITDA margin

Units % Units %

Total 945 824 121 15 - - - -

livestock products 3 3 (1) (18) -

meat 0.3 0.1 0.1 139 57.2 34.9 22.3 64

milk 2 3 (1) (23) 19.7 17.5 2.2 12

crops 942 821 121 15 -

sugar beet 883 696 188 27 1.8 1.4 0.4 25

wheat 40 122 (82) (67) 5.6 5.0 0.6 13

barley 4.4 0.1 4.2 n/a 4.8 7.0 (2.3) (32)

sunflower 0.7 0.1 0.6 485 12.8 14.7 (1.9) (13)

pea 2.1 0.0 2.1 n/a 8.3 7.4 0.9 12

corn 4.9 0.2 4.7 n/a 4.9 7.3 (2.4) (33)

soy 0.03 0.14 (0.11) (76) 7.3 15.3 (7.9) (52)

other 7 3 4 148 5.4 5.0 0.5 10

Average price (excl. VAT), ths rur/tn

Actual

Q3 2014

Actual

Q3 2013

Variances Actual

Q3 2014

Actual

Q3 2013

VariancesItem

Sales volume, thousand tons


14

Oil & Fats


Sales (RR +6,186 million, +120%: EZHK RR +946 million, +25% and SAPP RR +5,239 million, +394%).

Sales increase is mainly attributed to an increase in sales volume of raw oil and meal of Samara oil plant, that

was partly offset by a decrease in the sales prices of oil and meal.

Sales and prices in Samara oil plant:

• sales volume of sunflower oil to 3rd parties and other segments increased by 182 ths tn (+703%) from 26

ths tn to 208 ths tn (oil sales to EZHK increased by 65% from 22 ths tn to 37 ths tn);

• price of sunflower oil to 3rd parties decreased by 16% to 28.0 ths rur/tn (excl. VAT);

• sales volume of meal increased by 148 ths tn (+297%) from 50 ths tn to 199 ths tn;

• meal’s price decreased by 3% from 9.1 to 8.7 ths rur/tn (excl. VAT).

Sales and prices in Oil & Fats Yekaterinburg:

• sales volume of margarine increased by 4 ths tn (+17%) from 27 ths tn to 31 ths tn with a slight increase in

price from 50.8 ths rur/tn to 51.7 ths rur/tn (excl. VAT);

• sales volume of mayonnaise decreased slightly by 2% from 40.9 ths tn to 40.0 ths tn with an increase in

price of 3% from 56.2 ths rur/tn to 57.8 ths rur/tn (excl. VAT).

Adjusted EBITDA (RR +919 million, +251%, margin +4%: EZHK RR -79 million, -25%; and SAPP RR +998

million, +1999%):

• SAPP: 174% growth in oil production volume and 136% growth in meal production volume; cost of sunflower

seeds decreased by 29%.

• EZHK: growth (RR +518 million) of distribution and selling expenses (mainly attributed to advertising (RR

+242 million), payroll costs (RR +104 million), transportation costs (RR +87 million)) was partially

compensated by the positive effect of the decrease of the cost of raw oil by 23%.

Comments

5,151

366

11,337

1,285

7%

11%

0%

5%

10%

15%

20%

0

2,000

4,000

6,000

8,000

10,000

12,000



EB

ITD

A m

arg

in

RR

mil

lio

n

Oil & Fats: sales, Adjusted EBITDA and Adjusted

EBITDA margin

3,820

1,331

4,766

6,570

316

50237

1,048

8%

2%

5%

14%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

EZHK SAPP EZHK SAPP


EB

ITD

A m

arg

in

RR

mil

lio

n

Oil & Fats: sales and Adjusted EBITDA EZHK and SAPP


51

26

140

208

53

50

126

199

22

37

33.2

28.0

9.1

8.7

0

5

10

15

20

25

30

35

0

50

100

150

200

250

Production

volume


volume

Sales volume


tho

usa

nd

ru

ble

s p

er

ton

tho

us

an

d t

on

s

Oil & Fats Samara: volume and prices

Sunflower oil Meal Oil sales to EZHK Sunflower oil price (excl. VAT) Meal price (excl. VAT)

40.7 40.9 40.6 40.0

27.1 26.6

31.0 31.1

56.2

57.8

50.8 51.7

0

10

20

30

40

50

60

0

5

10

15

20

25

30

35

40

45

Production

volume


volume

Sales volume


tho

us

an

d r

ub

les

pe

r to

n

tho

us

an

d t

on

s

Oil & Fats Yekaterinburg: volume and prices

Mayonnaise Margarine Mayonnaise price (excl. VAT) Margarine price (excl. VAT)


12

4

37

51

14

11

34

56

3

12

30.2

27.4

8.8 9.5

0

5

10

15

20

25

30

35

0

10

20

30

40

50

60

Production

volume


volume

Sales volume


tho

us

an

d r

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r to

n

tho

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an

d t

on

s

Oil & Fats Samara: volume and prices

Sunflower oil Meal Oil sales to EZHK Sunflower oil price (excl. VAT) Meal price (excl. VAT)

1,616

117

3,361

294

7%

9%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500



EB

ITD

A m

arg

in

RR

mil

lio

n

Oil & Fats: sales, Adjusted EBITDA and Adjusted

EBITDA margin

1,372

244

1,7061,655

97

21

95 199

7.0%

6.2%

5.6%

10.0%

0%

2%

4%

6%

8%

10%

12%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

EZHK SAPP EZHK SAPP


EB

ITD

A m

arg

in

RR

mil

lio

n

Oil & Fats: sales and Adjusted EBITDA EZHK and SAPP


15

Oil & Fats


Sales (RR +1,745 million, +108%: EZHK RR +334 million +24% and SAPP RR +1,411 million

+578%).

Sales increase is attributed to an increase in sales volume of Samara oil plant and consumer

margarine at Yekaterinburg fat plant.

Sales and prices in Samara oil plant:

• sales volume of sunflower oil to 3rd parties increased by 47 ths tn (+1056%) from 4 ths tn to 51

ths tn (sales of oil to EZHK increased by 349% from 2.7 ths tn to 12.2 ths tn);

• price of sunflower oil to 3rd parties decreased by 9% from 30.2 to 27.4 ths rur/tn (excl. VAT);

• sales volume of meal increased by 45 ths tn (+401%) from 11 ths tn to 56 ths tn;

• meal’s price increased by 0.7 ths rur/tn (+7%) from 8.8 to 9.5 ths rur/tn (excl. VAT).

Sales and prices in Yekaterinburg fat plant:

• sales volume of margarine increased by 1.6 ths tn (+17%) from 9.2 ths tn to 10.7 ths tn with price

increased from 51.5 ths rur/tn to 52.8 ths rur/tn (excl. VAT);

• sales volume of mayonnaise decreased slightly by 0.4 ths tn (-2%) from 15.2 ths tn to 14.9 ths tn

with growth in price from 56.7 ths rur/tn to 58.2 ths rur/tn (excl. VAT).

Adjusted EBITDA (RR +177 million, +151%, margin +1%: EZHK RR -2 million, -2%;

and SAPP RR +179 million, +862%):

• SAPP: significant increase in sales volume; 5% decrease of sunflower seed cost.

• EZHK: growth of advertising expenses by RR 94 million, that was partially compensated by the

positive effect of the decrease of the cost of raw oil by 26%.

Comments

15.1 15.2 15.414.9

9.79.2

11.210.7

56.7

58.2

51.5

52.8

48

50

52

54

56

58

60

0

2

4

6

8

10

12

14

16

18

Production

volume


volume

Sales volume


tho

us

an

d r

ub

les

pe

r to

n

tho

us

an

d t

on

s

Oil & Fats Yekaterinburg: volume and prices

Mayonnaise Margarine Mayonnaise price (excl. VAT) Margarine price (excl. VAT)


Additional information

16


Statement of Comprehensive income (IFRS)

ROS AGRO PLC

1717

RR million

Units %

Sales 41,386 23,120 18,266 79

Gain on revaluation of biological assets and

agriculture produce 9,393 2,379 7,014 295

Cost of sales (34,641) (19,817) (14,824) -75

Gains less losses from trading sugar derivatives 294 124 170 136

Gross profit 16,432 5,805 10,627 183

Distribution and selling expenses (2,917) (2,005) (913) -46

General and administrative expenses (1,868) (1,899) 31 2

Share-based remuneration (53) (152) 99 65

Other operating income, net 323 74 249 337

Operating profit 11,916 1,823 10,092 553

Interest expense (69) (1,453) 1,385 95

Interest income 771 1,604 (832) -52

Other financial expenses, net 406 (59) 464 790

Share of profit of investments accounted for using

the equity method 0.5 - 0.5 -

Profit before taxation 13,025 1,915 11,109 580

Income tax expense (407) (39) (369) -957

Profit for the period 12,617 1,877 10,741 572

Other comprehensive income:

Items that may be subsequently reclassified to

profit and loss

Change in value of available-for-sale financial

assets (123) - (123) 0

Total comprehensive income for the period 12,494 1,877 10,617 566

Profit is attributable to:

Owners of ROS AGRO PLC 12,619 1,875 10,744 573

Non-controlling interest (1) 2 (3) -182

Profit for the period 12,617 1,877 10,741 572

Total comprehensive income is attributable to:

Owners of ROS AGRO PLC 12,496 1,875 10,621 566

Non-controlling interest (1) 2 (3) -182

Total comprehensive income for the period 12,494 1,877 10,617 566

Item Actual 9M 2013Actual 9M 2014Variances


18

Breakdown by divisions

Adjusted EBITDA 9M 2014 (IFRS)

ROS AGRO PLC

18

RR million

9M 2014 Sugar Meat Agriculture Oil Other Elimination Total

Sales 16,578 12,753 3,603 11,337 37 (2,921) 41,386

Gain on revaluation of biological assets and agricultural

produce - 7,670 1,723 - - - 9,393

Cost of sales (12,997) (12,881) (3,094) (8,299) - 2,630 (34,641)

incl. Depreciation (559) (1,072) (303) (180) - (26) (2,141)

Gains less losses from trading sugar derivatives 294 - - - - - 294

Gross profit 3,874 7,542 2,232 3,038 37 (291) 16,432

Distribution and Selling, General and administrative

expenses (1,678) (328) (574) (2,035) (465) 295 (4,785)

General and administrative expenses (552) (296) (297) (301) (464) 42 (1,868)

Distribution and selling expenses (1,127) (32) (278) (1,734) (1) 254 (2,917)

incl. Depreciation (79) (10) (28) (102) (18) 9 (228)

Dep in General and administrative expenses (9) (10) (14) (17) (18) - (69)

Dep in Distribution and selling expenses (70) (0) (14) (85) - 9 (160)

Share-based remuneration - - - - (53) - (53)

Other operating income/(expenses), net (20) 224 87 4 3,462 (3,434) 323

incl. Reimbursement of operating costs (government

grants) - 172 154 - - - 326

Operating profit 2,176 7,437 1,745 1,007 2,980 (3,429) 11,916

Adjustments:

Depreciation included in Operating Profit 639 1,082 331 282 18 17 2,369

Other operating (income) /expenses, net 20 (224) (87) (4) (3,462) 3,434 (323)

Share-based remuneration - - - - 53 - 53

Reimbursement of operating costs (government grants) - 172 154 - - - 326


produce - (7,670) (1,723) - - - (9,393)

Gain on initial recognition of agricultural produce

attributable to realised agricultural produce - - 718 - - 166 884

Revaluation of biological assets attrubitable to realised

biological assets and included in cost of sales - 5,415 (4) - - - 5,412

Adjusted EBITDA 2,835 6,213 1,135 1,285 (410) 187 11,245


19

Breakdown by divisions

Adjusted EBITDA 9M 2013 (IFRS)

ROS AGRO PLC

19

RR million

9M 2013 Sugar Meat Agriculture Oil Other Elimination Total

Sales 11,896 4,518 2,963 5,151 99 (1,507) 23,120


produce - 272 2,106 - - - 2,379

Cost of sales (10,542) (4,327) (2,451) (3,922) (0) 1,425 (19,817)

incl. Depreciation (546) (687) (257) (165) - (28) (1,683)

Gains less losses from trading sugar derivatives 124 - - - - - 124

Gross profit 1,479 463 2,618 1,229 99 (82) 5,805

Distribution and Selling, General and administrative

expenses (1,543) (294) (805) (1,086) (376) 201 (3,904)

General and administrative expenses (554) (267) (479) (274) (376) 50 (1,899)

Distribution and selling expenses (988) (27) (326) (813) (0) 150 (2,005)

incl. Depreciation (84) (10) (26) (59) (15) 2 (191)

Dep in General and administrative expenses (7) (8) (15) (16) (15) - (60)

Dep in Distribution and selling expenses (77) (2) (11) (43) - 2 (131)

Share-based remuneration - - - - (152) - (152)

Other operating income/(expenses), net (60) 184 (27) (21) 1,003 (1,006) 74

incl. Reimbursement of operating costs (government

grants) - 248 179 - - - 427

Operating profit (124) 353 1,785 122 574 (888) 1,823

Adjustments:

Depreciation included in Operating Profit 630 697 282 224 15 26 1,874

Other operating (income) /expenses, net 60 (184) 27 21 (1,003) 1,006 (74)

Share-based remuneration - - - - 152 - 152

Reimbursement of operating costs (government grants) - 248 179 - - - 427


produce - (272) (2,106) - - - (2,379)

Gain on initial recognition of agricultural produce

attributable to realised agricultural produce - - 716 - - 379 1,094

Revaluation of biological assets attrubitable to realised

biological assets and included in cost of sales - 55 21 - - - 76

Provision/ (Reversal) for net realisable value costs (30) - 3 - - - (27)

Adjusted EBITDA 536 897 907 366 (262) 523 2,967


Statement of cash flows (IFRS)

ROS AGRO PLC

2020

mln. rur

Units %

Cash flows from operating activities

(Loss)/ profit before taxation 13,025 1,915 11,109 580

Adjustments for: (1,899) 539 (2,438) 0

Depreciation of property, plant and equipment 2,369 1,874 495 26

Interest expense 1,740 2,718 (978) -36

Government grants (2,109) (1,767) (342) -19

Interest income (771) (1,604) 832 52

Loss/ (gain) on initial recognition of agricultural produce, net (413) (1,012) 599 59

Change in provision for net realisable value of inventory 311 (17) 328 0

Share of profit of investments accounted for using the equity

method (0.5) - (0.5) 0

Revaluation of biological assets, net (2,685) (196) (2,488) -1,266

Change in provision for impairment of receivables and

prepayments42 186 (144) -78

Foreign exchange (gain) / loss (407) (24) (383) -1,586

Share based remuneration 53 152 (99) -65

Lost harvest w rite-off 5 22 (17) -76

Change in provision for impairment of advances paid for

property, plant and equipment3 65 (62) -95

Loss on impairment of investments - 151 (151) 0

Other non-cash and non-operating expenses, net (38) (9) (29) -328

Operating cash flow before working capital changes 11,125 2,454 8,671 353

Change in trade and other receivables and prepayments 233 (374) 607 0

Change in other taxes receivable 116 1,601 (1,485) -93

Change in inventories 1,880 4,555 (2,674) -59

Change in biological assets (805) (3,013) 2,209 73

Change in trade and other payables 2,153 925 1,228 133

Change in other taxes payable 12 (397) 409 0

Cash generated from operations 14,716 5,751 8,965 156

Income tax paid (792) (70) (722) -1,029

Net cash from operating activities 13,924 5,681 8,244 145

Actual

9M 2014

Actual

9M 2013

Variances


Statement of cash flows (IFRS) - continuance

ROS AGRO PLC

2121

(*) For the purpose of conformity with the methodology of the Group's net debt calculation, investments in

financial assets related to financial activities are presented in Cash flows from financing activities in the

Group's management accounts.

mln. rur

Units %

Cash flows from investing activities - 0

Purchases of property, plant and equipment (3,926) (2,496) (1,431) -57

Purchases of other intangible assets (87) (36) (51) -143

Proceeds from sales of property, plant and equipment 32 51 (19) -37

Purchases of inventories intended for construction (2) (17) 15 89

Purchases of associates and investments in subsidiaries, net

of cash acquired(50) - (50) 0

Change in promissory notes* 1,100 9 1,091 12,122

Change in cash on bank deposits* 5,236 9,721 (4,485) -46

Purchases of bonds* (5,244) - (5,244) 0

Loans given (1,021) (237) (784) -330

Loans repaid 1,184 235 949 403

Interest received* 903 1,587 (685) -43

Movement in restricted cash (20) 85 (106) 0

Other investing activities 1 3 (2) -64

Net cash from/ (used in) investing activities (1,895) 8,905 (10,801) 0

Cash flows from financing activities

Proceeds from borrow ings 8,837 7,514 1,323 18

Repayment of borrow ings (21,098) (20,971) (126) -1

Interest paid (1,600) (3,058) 1,458 48

Dividends paid (1,000) (0) (1,000) 0

Sale of non-controlling interest 7 - 7 0

Purchases of non-controlling interest (7) (261) 254 97

Proceeds from government grants 2,118 1,959 159 8

Purchases of treasury shares (44) - (44) 0

Net cash (used in)/ from financing activities (12,786) (14,817) 2,030 14

Net effect of exchange rate changes on cash and cash

equivalents175 15 160 1,101

Net increase/ (decrease) in cash and cash equivalents (583) (216) (366) -169

Cash and cash equivalents at the beginning of the period 2,673 2,020 653 32

Cash and cash equivalents at the end of the period 2,090 1,804 287 16

Actual

9M 2014

Actual

9M 2013

Variances


Statement of cash flows according to Management view (Not IFRS presentation)

ROS AGRO PLC

2222

mln. rur

Units %

Cash flows from operating activities

(Loss)/ profit before taxation 13,025 1,915 11,109 580

Adjustments for: (1,899) 539 (2,438) 0

Depreciation of property, plant and equipment 2,369 1,874 495 26

Interest expense 1,740 2,718 (978) -36

Government grants (2,109) (1,767) (342) -19

Interest income (771) (1,604) 832 52

Loss/ (gain) on initial recognition of agricultural produce, net (413) (1,012) 599 59

Change in provision for net realisable value of inventory 311 (17) 328 0

Share of profit of investments accounted for using the equity

method (0.5) - (0.5) 0

Revaluation of biological assets, net (2,685) (196) (2,488) -1,266

Change in provision for impairment of receivables and

prepayments42 186 (144) -78

Foreign exchange (gain) / loss (407) (24) (383) -1,586

Share based remuneration 53 152 (99) -65

Lost harvest w rite-off 5 22 (17) -76

Change in provision for impairment of advances paid for

property, plant and equipment3 65 (62) -95

Loss on impairment of investments - 151 (151) 0

Other non-cash and non-operating expenses, net (38) (9) (29) -328

Operating cash flow before working capital changes 11,125 2,454 8,671 353

Change in trade and other receivables and prepayments 233 (374) 607 0

Change in other taxes receivable 116 1,601 (1,485) -93

Change in inventories 1,880 4,555 (2,674) -59

Change in biological assets (805) (3,013) 2,209 73

Change in trade and other payables 2,153 925 1,228 133

Change in other taxes payable 12 (397) 409 0

Cash generated from operations 14,716 5,751 8,965 156

Income tax paid (792) (70) (722) -1,029

Net cash from operating activities 13,924 5,681 8,244 145

Actual

9M 2014

Actual

9M 2013

Variances


Statement of cash flows according to Management view (Not IFRS presentation) - continuance

ROS AGRO PLC

2323

mln. rur

Units %

Cash flows from investing activities - 0

Purchases of property, plant and equipment (3,926) (2,496) (1,431) -57

Purchases of other intangible assets (87) (36) (51) -143

Proceeds from sales of property, plant and equipment 32 51 (19) -37

Purchases of inventories intended for construction (2) (17) 15 89

Purchases of associates and investments in subsidiaries, net

of cash acquired (50) - (50) 0

Loans given (1,021) (237) (784) -330

Loans repaid 1,184 235 949 403

Movement in restricted cash (20) 85 (106) 0

Other investing activities 1 3 (2) -64

Net cash from/ (used in) investing activities (3,890) (2,412) (1,478) -61

Cash flows from financing activities

Proceeds from borrow ings 8,837 7,514 1,323 18

Repayment of borrow ings (21,098) (20,971) (126) -1

Interest paid (1,600) (3,058) 1,458 48

Dividends paid (1,000) (0) (1,000) 0

Change in promissory notes* 1,100 9 1,091 12,122

Change in cash on bank deposits* 5,236 9,721 (4,485) -46

Purchases of bonds* (5,244) - (5,244) 0

Interest received* 903 1,587 (685) -43

Sale of non-controlling interest 7 - 7 0

Purchases of non-controlling interest (7) (261) 254 97

Purchases of treasury shares (44) - (44) 0

Proceeds from government grants 2,118 1,959 159 8

Net cash (used in)/ from financing activities (10,792) (3,500) (7,292) -208

Net effect of exchange rate changes on cash and cash

equivalents 175 15 160 1,101

Net increase/ (decrease) in cash and cash

equivalents (583) (216) (366) -169

Cash and cash equivalents at the beginning of the period 2,673 2,020 653 32

Cash and cash equivalents at the end of the period 2,090 1,804 287 16

Actual

9M 2013

Actual

9M 2014

Variances


Statement of financial positions (IFRS)

ROS AGRO PLC

2424

RR million

Units %

ASSETS

Current assets

Cash and cash equivalents 2,090 2,673 (583) -22

Short-term investments 8,677 15,267 (6,590) -43

Trade and other receivables 1,778 1,771 7 0

Prepayments 453 825 (372) -45

Current income tax receivable 119 45 74 163

Other taxes receivable 1,362 1,487 (125) -8

Inventories 12,595 13,865 (1,271) -9

Short-term biological assets 5,737 2,213 3,524 159

Total current assets 32,811 38,146 (5,335) -14

Non-current assets

Property, plant and equipment 29,493 28,365 1,128 4

Inventories intended for construction 38 37 2 5

Goodw ill 1,231 1,176 56 5

Advances paid for property, plant and equipment 2,249 2,335 (85) -4

Advances paid for intangible assets - 3 (3) -100

Long-term biological assets 1,522 1,554 (31) -2

Long-term investments 6,608 871 5,737 659

Investments in associates 41 - 41 0

Deferred income tax assets 530 354 176 50

Other intangible assets 296 289 7 3

Restricted cash 23 2 20 849

Total non-current assets 42,033 34,984 7,049 20

Total assets 74,845 73,130 1,714 2

31 December 201330 September 2014Variances


Statement of financial positions (IFRS) - continuance

ROS AGRO PLC

2525

RR million

Units %

Liabilities and EQUITY

Current liabilities

Short-term borrow ings 10,015 18,144 (8,130) -45

Trade and other payables 4,562 2,353 2,209 94

Current income tax payable 19 347 (328) -94

Other taxes payable 1,275 1,327 (52) -4

Total current liabilities 15,871 22,171 (6,300) -28

Non-current liabilities

Long-term borrow ings 10,635 14,369 (3,733) -26

Government grants 1,744 1,735 9 1

Deferred income tax liability 484 290 194 67

Total non-current liabilities 12,864 16,394 (3,530) -22

Total liabilities 28,735 38,565 (9,830) -25

Equity

Share capital 10 10 (0) 0

Treasury shares (506) (462) (44) -10

Additional paid-in capital 10,558 10,558 - 0

Other reserves 1,290 1,237 53 4

Retained earnings 34,521 23,214 11,307 49

Equity attributable to owners of ROS AGRO PLC 45,872 34,557 11,316 33

Non-controlling interest 237 8 228 2,702

Total equity 46,109 34,565 11,544 33

Total liabilities and equity 74,845 73,130 1,714 2

31 December 201330 September 2014Variances

Documents

ROS AGRO PLC · "NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN AUSTRALIA, CANADA, THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA, JAPAN, SOUTH AFRICA,