Astarta Holding PLC

Good afternoon everyone, it's Marcin Dąsacz from PECAO. I'm happy to welcome you to today's call. We will discuss ASTARTUS 2019 results. The company is represented today by Mr. Wiktor Iwanczyk, CEO, Mr. Wiktor Glacki, CFO, and Mrs. Julia Berezchenko, Business Development and IR Director. There is presentation for annual results available at ASTARTUS investor relations website. We will start with presentation and then there will be time for your questions. Now, let me hand over to the company for presentation. Thank you.

Thank you, Marcin. Everyone received the link to our presentation. So, I would like to turn straight to slide number three where we provide an overview of our PML results for 2019. and compare them to 2018. The company led to increases revenue significantly due to strong harvest in 2019 and that reflected in the strong volume sales growth in agricultural segments which also contributed about half of the total revenue. The sugar segments were basically flat as the prices for sugar were slightly up, but the volumes were slightly down. The soybean and dairy segments demonstrated good performance with 18 and 18% revenue growth. More than half of our revenues are generated by sales to overseas markets. and out of 253 million euro exports, 150 is done through the EU market. The gross profit margin went down from 26 to 20%, although there is always an impact from I have 41 standards related to the changes in fair value of biological assets in agricultural produce. If we exclude those and you have a look at the lower right hand corner, there is a table which shows our growth and EBDA margin excluding the impact of the biological assets. The EBDA increased on some results from the dairy segment, from higher margin in the soybean processing, and the bottom line turned from negative 18 million euros to nearly 2 million euros. Now moving on to the cash flows and our balance sheet. As we highlighted in our last results, In 2019, we focused on maximizing our operating cash flows. We started selling our 2019 harvest on a much higher pace compared to the previous year. We managed our working capital much better and we reduced our days of inventory turnover as well as receivables turnover and that allowed us to generate 170 million euro of operating cash flows compared to just 16 in 2008. Since our margins in the sugar segment remain very low, we preserve our cash by also managing our copies. So our copies were limited just to 20 2 million euro of which significant amount is related to finalizing these storage facility copies which is now totally completed Since we were in brief in our provenance.

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