Rusagro overview

Rusagro is a leading vertically integrated agriholdings in Russia, present on five key markets: sugar, pork, oil and fats, dairy products and agricultural crops markets. The assets of the Company are located in 12 constituent entities of the Russian Federation and its products are sold across 62 countries to B2B and B2C clients under 23 retail brands.

+15 % 159 RUB bn
Sales
-2 % 19.3 ths people
Average headcount

Key business
divisions

4

Regions
of presence

12

Export
countries

61


Brands

23

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Strategic Report

The strategic goal of Rusagro is to increase returns for shareholders through expansion, added value products, innovations and high quality human capital. The business model is based on vertical integration across all key business segments and offers advantages of economies of scale, diversification and value chain control.

-16 % 14.1 RUB bn
Capital investments
+65 % 32 RUB bn
Adj. EBITDA
+6 p.p 20%
Adj. EBITDA margin
2.12
Net Debt/adj. EBITDA (LTM)
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Company’s business

Rusagro business comprises of four key divisions: Agriculture, Oil and Fats, Meat and Sugar Segment. Plus, in 4Q 2018 it established Dairy Products Segment, which will be joined to Oil and Fats Segment in 2021. Today, Company is the largest in Russia producer of unrefined sunflower oil and consumer margarine, second largest producer of industrial fats and mayonnaise, and third largest sugar and pork producer, and agriculture land holder.

+157 % 15.2 RUB bn
Adj. EBITDA of Agriculture Business
+177 % 9.4 RUB bn
Adj. EBITDA of Oil and Fats Business
+34 % 6.5
Adj. EBITDA of Meat Business
+59 % 6.4
Adj. EBITDA of Sugar Business
Corporate Governance

Rusagro has been a publicly traded company since 2011. Global depository receipts for ordinary shares of ROS AGRO PLC are listed on the London and Moscow Stock Exchanges. The public status of the Company requires high standards of corporate governance, since effective corporate governance system is crucial for the long-term stability of the business and the rise in shareholder’s value. The shareholders’ right to participate in Rusagro’s profits is exercised through the Dividend Policy, approved in 2013.

20%
Free-float of Rusagro’s GDRs
50%
Net Profit for 2020 to be distributed as dividends
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ESG Report

Adhering to its mission Making the life of people longer and better, Rusagro aims to achieve long-term growth and use responsible business practice, considering its stakeholders’ diverse interests. To support its sustainable development Rusagro focuses on three key priorities which are human capital development, environment protection and high quality corporate governance.

-2 % 19.3 ths people
Average headcount
+6 p.p 72% ths people
Engagement rate
x7 242.0 RUB mn
Investments in social programmes
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Amid the development of prices on global markets and the depreciation of the rouble, the Agriculture Business’s income hit a record high in 2020. The sales went up by 33% and reached RUB 34.3 billion (+RUB 8.5 billion) despite falling-off in total sales volume (-21%). With the production cost standing at more or less 2019 level, the Business’s profit margin reached 44% with the earnings before interest, taxation, depreciation & amortisation (EBITDA) of RUB 15.2 billion, posting an increase of 157% (+RUB 9.3 billion).

33% 34.3 RUB bn
Sales
157% 15.2 RUB bn
Adj. EBITDA
21 p.p. 44%
Adj. EBITDA margin
RUSAGRO’S AGRICULTURE BUSINESS RESULTS
IN 2020
-1% 637 ths ha
Farming land area
No. 4
By the size of the agricultural land bank in Russia
-21% 4.3 mn tonnes
Sales volumes of agricultural crops
ADJ.EBITDA OF RUSAGRO’S AGRICULTURE BUSINESS, RUB bn
33% 34.3 RUB bn
Sales
157% 15.2 RUB bn
Adj. EBITDA
21 p.p. 44%
Adj. EBITDA margin

In 2020, the sales Oil and Fats segment grew by 22% (+RUB 13.8 billion) — to RUB 76.2 billion on the back of advancing selling prices for all products and a larger sales volume of industrial fats, bottled oil, and the mayonnaises. Thanks to the high share of sell products was made from cheaper sunflower seeds of the 2019 the earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 177% and reached RUB 9.4 billion, and the adjusted EBITDA margin — by 7 p.p. from 5 to 12%.

22% 76.2 RUB bn
Sales
177% 9.4 RUB bn
Adj. EBITDA
7 p.p. 12%
Adj. EBITDA margin
RUSAGRO’S OIL AND FATS BUSINESS RESULTS
IN 2020
7% 1.5 million tonnes
Sunflower seeds processed
8% 672 ths tonnes
Unrefined sunflower oil production
-9% 384 ths tonnes
Sales of unrefined vegetable oil
7% 592 ths tonnes
Sales of meal
29% 313 ths tonnes
Sales of industrial fats
4% 341 ths tonnes
Sales of consumer oil and fat products
ADJUSTED EBITDA RUB bn
22% 76.2 RUB bn
Sales
177% 9.4 RUB bn
Adj. EBITDA
7 p.p. 12%
Adj. EBITDA margin

In 2020, the Meat Business’s posted major increase in revenues (+6.6 RUB billion, or +26%) driven by higher sales of meat products against the backdrop of reaching full capacity of the pig farms built in 2019 in the Tambov Region, an increase in the productivity of slaughterhouses and deboning shops, as well as export development. Despite the rise in the price of the compound feed component of the live pork cost, profit margin improved by 1 p.p. — up to 20%, fuelling the growth of adjusted EBITDA by 34% — up to RUB 6.5 billion (+RUB 1.7 billion).

26% 32.4 RUB bn
Sales of Meat Business
34% 6.5 RUB bn
Adj. EBITDA
1 p.p. 20%
Adj. EBITDA margin
RESULTS OF RUSAGRO’S MEAT SEGMENT IN 2020
7% 104 ths sows
Pig stock
26% 308 ths tonnes
Pork production in live weight
22% 254 ths tonnes
Sales volume
ADJ. EBITDA OF RUSAGRO’S MEAT BUSINESS, RUB bn
26% 32.4 RUB bn
Sales of Meat Business
34% 6.5 RUB bn
Adj. EBITDA
1 p.p. 20%
Adj. EBITDA margin

In 2020, the Sugar Business’s showed a decrease in sales as a result of a reduction in sugar sales volume (-21%, or 212 thousand tonnes) due to lower sugar production resulted from poorer yield of the sugar beet in Russia; on the other hand, lower cost of goods noticeably improved the adj. EBITDA (+59%, or RUB 2.4 billion) and margin from 13 to 23%.

-10% 28.1 RUB bn
Sales
59% 6.4 RUB bn
Adj. EBITDA
10 p.p. 23%
Adj. EBITDA margin
SUGAR BUSINESS IN 2020
-13% 764 ths tonnes
Sugar production volume
No. 2
Sugar producer in Russia
-21% 811 ths tonnes
Sales of sugar
ADJUSTED EBITDA OF RUSAGRO’S SUGAR BUSINESS, RUB bn
-10% 28.1 RUB bn
Sales
59% 6.4 RUB bn
Adj. EBITDA
10 p.p. 23%
Adj. EBITDA margin

ROSAGRO’S DAIRY
PRODUCTS BUSINESS
RESULTS IN 2020:

2% 28 tns tonnes
Dairy products sales
-2% 3.8 RUB bn
Sales