Kernel Holding S.A.

FY2019 results and company presentation September 2019

 Disclaimer

The information in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy,
completeness or correctness of the information or opinions contained herein. Neither the Company (as defined below) or any of its affiliates shall have any liability whatsoever (in negligence or otherwise)
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“Company”). It is not intended to form the basis upon which any investment decision or any decision to purchase any interest in the Company is made. Information in this document relating to the price at
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Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

www.kernel.ua Company presentation September 2019 1

 Content

1. FY2019 results and FY2020 outlook

2. Kernel today

3. Balanced growth strategy

4. Financials

Appendices

Farming cluster “Druzhba-Nova” (Northern Ukraine)

184 thousand hectares of leasehold farmland under operations
 FY2019 results
results
and FY2020
and FY2020 Balanced
outlook
outlook Kernel today growth strategy Financials

1.1 FY2019 highlights

US$ million except EPS FY2018 FY2019 y-o-y
◼ Revenue at US$ 4.0bn, up 66% y-o-y driven by stronger sales of grain and Income statement highlights
sunflower oil and Avere operations. Revenue 2,403 3,992 66%
EBITDA 1 223 346 55%
Net profit attributable to equity holders 52 189 3.6x
◼ EBITDA at US$ 346m, 55% up y-o-y:
– Oilseeds Processing EBITDA at US$ 109m (up 42% y-o-y) driven by EBITDA margin 9.3% 8.7% (0.6pp)
stronger sales volumes and recovery in margins; Net margin 2.2% 4.7% 2.6pp
– Infrastructure and Trading EBITDA at US$ 106m, up 5% y-o-y on EPS 2, US$ 0.64 2.31 3.6x
stronger volumes across al business lines and contribution from railcars
operations; Cash flow highlights
Operating profit before working capital changes 183 368 2.0x
– Farming EBITDA at US$ 182m (2.0x growth y-o-y) driven by crop yields Change in working capital (31) (94) 3.0x
recovery and proper price hedging policy applied. Finance costs paid, net (64) (72) 12%
Income tax paid (5) (3) (36%)
Net cash generated by operating activities 82 199 2.4x
◼ Net profit attributable to shareholders at US$ 189m in FY2019 (vs. US$ 52m Net cash used in investing activities (156) (241) 55.1%
in FY2018).
Financial year ends 30 June
Note 1 Hereinafter, EBITDA is calculated as the sum of the profit from operating activities plus amortization and depreciation.
Note 2 EPS is measured in US Dollars per share based on 81.9 million shares for FY2019 and FY2018.
◼ Net cash inflow from operating activities at US$ 199m (up 2.4x y-o-y).
Credit metrics
US$ million, except ratios 30 June 2018 30 June 2019 y-o-y
◼ 11% net debt increase over FY2019 to US$ 694m driven by CapEx program. Short-term debt 246 203 (17%)
Long-term debt 498 560 12%
Obligations under finance lease 11 8 (30%)
◼ Net-debt-to-EBITDA at 2.0x as of 30 June 2019 (measured on 12 months
Debt liabilities 754 770 2%
trailing basis) vs. 2.8x a year ago. EBITDA-to-interest ratio improved to 4.2x Cash and cash equivalents 132 77 (42%)
as of 30 June 2019 (measured on 12 months trailing basis) vs. 3.4x a year ago. Net debt 622 694 11%
Readily marketable inventories 3 325 293 (10%)
of which sunflower oil and meal 218 125 (43%)
Sunflower seeds 58 104 80%
Grains and other RMIs 50 65 31%
Adjusted net debt 297 400 35%
Shareholders’ equity 1,171 1,351 15%

Net debt / EBITDA 4 2.8x 2.0x (0.3x)

Adjusted net debt / EBITDA 4 1.3x 1.2x (0.1x)
EBITDA / Interest 5 3.4x 4.2x 0.2x
Note 3 Commodity-type inventories that could easily be converted into cash.
Note 4 Calculated based on 12-month trailing EBITDA.
Note 5 Calculated based on 12-month trailing EBITDA and net finance costs.

www.kernel.ua Company presentation September 2019 3

 FY2019 results
results
and FY2020
and FY2020 Balanced
outlook
outlook Kernel today growth strategy Financials

1.2 Segment results

Segment volumes, m tons EBITDA margin EBITDA, US$ m

◼ Highest ever processing and sales volumes;
213
3.0 3.1 3.2 190 ◼ EBITDA margin recovery:
Oilseed 2.7
2.5
Processing – 15.2m t harvest of sunflower seeds in Ukraine (up
120 129
100 109 13% y-o-y) pushed margin up but…
1.6 83
1.4 67 77
1.1 1.1 1.2 54 – …subdued global sunflower oil prices prevented
margin from further increase.

FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
Oilseeds processed US$ / t of oil sold
Sunflower oil sales

◼ #1 grain exporter from Ukraine, driven by:

6.1
– Record crop yields of our farming segment;
5.1 26
4.7 24 24
22 – Highest ever 3.5m t volumes procured from 3rd-
4.4 4.6
Infrastructure 4.0 17
114
party farmers;
107 110 101 106
& Trading 4.5 – Full capacity utilization of our infrastructure;
4.1 4.3
3.7
3.6 – Usage of a 3rd-party export terminal.
3.3 3.3
2.8 ◼ US$ 17 per ton EBITDA margin on grain exported ,
2.5
FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 diluted by increasing share of low-margin trading
Grain export volumes (ex. Avere) US$ / t of grain exported (ex. Avere) operations and Avere negative result.
Export terminal throughput (Ukraine)
Inland silos in-take volumes

◼ Divestment of suboptimal plots decreased the

3.3
farmland acreage,
2.5 374 378 ◼ The largest crop of 3.3m t was harvested driven by
344 182
Farming 1.8 1.9
2.1
record yields for late crops supported by:
256 146 146
596
529
98 – Favorable weather conditions;
383 391 385 149 89
– Quick and successful integration of farming
business acquired in 2017; and
– Continued productivity gains.
FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
◼ Effective hedging strategy and strong crop yields
Acreage harvested, k ha US$ / ha
Key crops production, m tons resulted in EBITDA margin growth to US$ 344 per
hectare, up 2.3x y-o-y.

www.kernel.ua Company presentation September 2019 4

 FY2019 results
results
and FY2020
and FY2020 Balanced
outlook
outlook Kernel today growth strategy Financials

1.3 Segment results FY2019 – transition to three segments disclosure

Segments results (new presentation layout)

◼ Since FY2019 company moved to three
Revenue, US$ m EBITDA, US$ m Volume, k t 1 EBITDA margin, US$ / t 2 segment disclosure replacing initial six
segment disclosure:
FY2018 FY2019 y-o-y FY2018 FY2019 y-o-y FY2018 FY2019 y-o-y FY2018 FY2019 y-o-y
– Sunflower oil sold in bulk and
Oilseed Processing 1,393 1,493 7% 77 109 43% 1,413 1,619 15% 54.3 67.3 24% Bottled sunflower oil combined
Infrastructure and Trading 1,025 3,140 3.1x 101 106 4.9% 3,953 6,094 54% 25.5 17.4 (32%) into Oilseed Processing segment,
Farming 470 602 28% 89 182 2.0x 2,594 3,294 27% 148.9 343.7 2.3x as fundamentals driving the
Unallocated corporate expenses (44) (51) 17% performance of two segments are
Reconciliation (486) (1,243) 2.6x quite similar;
Total 2,403 3,992 1.7x 223 346 55%
– Grain trading, Export terminals
Note 1 Physical grain volumes exported from Ukraine for Infrastructure and Trading
Note 2 US$ per ton of oil sold for Oilseeds Processing; US$ per ton of grain exported (ex. Avere volumes) for Infrastructure & Trading; US$ per hectare for Farming. and Silo services segments
combined into Infrastructure and
Trading segment, as we look at the
margin through the whole value
Segments results (old presentation layout) chain rather than profitability of each
separate business, eliminating the
Revenue, US$ m EBITDA, US$ m Volume, k t 3 EBITDA margin, US$ / t 4 need to account for a large number
FY2018 FY2019 y-o-y FY2018 FY2019 y-o-y FY2018 FY2019 y-o-y FY2018 FY2019 y-o-y of intragroup transactions among
Sunflower oil sold in bulk 1,264 1,353 7.1% 63 93 47% 1,301 1,496 15% 48.7 62.2 28%
Bottled sunflower oil 130 140 7.9% 13 16 19% 119 131 10% 112.6 121.6 8%
our grain, silo and terminal
Sunflower oil division 1,393 1,493 7.2% 77 109 42% businesses.
◼ Operational volumes will be reported as
Grain trading 951 3,077 3.2x 17 31 80% 4,646 10,444 2.2x 3.8 3.0 (20%) before in our standard quarterly
Export terminals (Ukraine) 53 49 (7.1%) 39 36 (7.9%) 4,112 4,606 12% 9.5 7.8 (18%) operations updates.
Silo services 72 71 (2.3%) 44 38 (13%) 3,292 4,276 30% 13.4 9.0 (33%)
Grain & infrastructure division 1,077 3,197 3.0x 101 106 4.9% ◼ We believe the proposed changes shall
simplify the understanding of the
Farming division 470 602 28% 89 182 2.0x 2,594 3,294 27% 148.9 343.7 2.3x company business by its stakeholders.
◼ For transparency and facilitation
Unallocated corporate expenses (44) (51) 17%
Reconciliation (538) (1,300) 2.4x - - purposes, we continued to report six
Total 2,403 3,992 1.7x 223 346 55% segments in MD&A section throughout
FY2019.
Note 3 Million liters for bottled sunflower oil; grain trading volumes include physical trading volumes reported by Avere, a subsidiary of Kernel involved in physical and proprietary trading.
Note 4 US$ per thousand of liters for bottled sunflower oil; US$ per hectare for farming.
Differences are possible due to rounding.

www.kernel.ua Company presentation September 2019 5

 FY2019 results
results
and FY2020
and FY2020 Balanced
outlook
outlook Kernel today growth strategy Financials

1.4 Recent transactions highlights

Acquisitions Debt raising

Acquisition of 100% interest in RTK-Ukraine (Feb 2019) Loan from European Investment Bank (Dec 2018)
◼ Assets acquired: 2,949 grain railcars (#1 private fleet of grain hopper ◼ US$ 250m project financing from the EIB
wagons in Ukraine). ◼ The funds will be used to finance the construction of:
◼ Consideration: US$ 65m − Greenfield oil-extraction plant in Western Ukraine;
− US$ 49m paid at completion, the remaining to be paid upon the US$ 250 − Co-generation heat and power plants;
achievement of certain conditions. million − Inland grain storage facilities;
◼ Rationale: − Grain export terminal in the port of Chornomorsk;
− Estimated EBITDA contribution of up to US$ 35m in FY2020; ◼ Flexibility to draw tranches in line with the CapEx
− Natural hedge against ever rising logistic costs; needs.
− Assurance for smooth and efficient flow of grains from inland silos to the ◼ 10-year maturity with a 2 year grace period
ports as Company’s export volumes increase following the
commissioning of TransGrainTerminal in the port of Chornomorsk.
◼ 13% Kernel market share (2,949 acquired and 500 own new grain railcars).

State monopoly grain railcars rental rates Grain railcars market structure
US$ per railcar per day thousand grain railcars
State monopoly
50 Kernel Financing arranged by EBRD (Feb 2019)
45 Other private ◼ US$ 56m financing facility (US$ 48m loan from EBRD
40 11.2 11.4
43% 44%
and US$ 8m loan from Clean Technology Fund);
35 26.0 ◼ The funds will be used to finance the construction of
30
25
UAH UAH UAH UAH biomass co-generation heat and power plants
UAH 655 856 1,055 1,117 1,136 3.4 integrated into existing crushing facilities of Kernel ;
20
Feb 18 Jun 18 Oct 18 Feb 19 Jun 19 Oct 19 13%
◼ 8-year maturity with 2-year grace period.
Source Ukrainian Railways, Kernel calculation. Source Ukrainian Railways, September 2019. US$ 56
million
Acquisition of 5.85% interest in ViOil (Feb 2019)
◼ Kernel acquired 5.85% interest in ViOil Holding Ltd and entered into a The start of long-term cooperation with reputable international financial
customary shareholder agreement in relation to ViOil with other shareholders institutions demonstrates Kernel transparency and high standards of
of ViOil. corporate governance.
◼ ViOil assets: two multi-seed oil-extraction plants with annual crushing
capacity of 1.1 million tons of sunflower seeds and a network of silos in
Western Ukraine.
◼ Rationale: initial step towards a possible future consolidation of major
Western Ukraine competitor in crushing business.

www.kernel.ua Company presentation September 2019 6

 FY2019 results
results
and FY2020
and FY2020 Balanced
outlook
outlook Kernel today growth strategy Financials

1.5 Outlook for FY2020

◼ FY2020 sunflower seed acreage remained relatively the same as y-o-y as temporary weakness in global sunflower oil prices observed throughout
FY2019 discouraged farmers to further increase planting areas;
Oilseed ◼ The most recent field data make us expect sunflower seed harvest in Ukraine at 15.2 million tons in FY2020, flat y-o-y, securing strong supply of
Processing seeds in the market;
◼ Competitive landscape is not expected to change. Low margin environment prohibits further investments in the sector keeping the aggregate oilseed
processing capacities at 18.5 million tons in Ukraine;
◼ Global sunflower oil prices recovered at the beginning of the FY2020 season, creating a momentum for the improvement of crushing margins;
◼ We expect over US$ 6m EBITDA contribution from cogeneration heat and power plants to be commissioned in FY2020.

◼ Grain harvest in Ukraine is envisaged to reach 75 million tons compared to 70 million tons last year, assuring robust supply of feedstock;
◼ We expect to originate over 11 million tons of grain and oilseed in FY2020, up 20% y-o-y-y (including crops harvested by our farming business) and
export over 8 million tons of grain and oilseeds from Ukraine in FY2020 as a result of:
Infrastructure
& Trading – Commissioning of our brand-new TransGrainTerminal in the port of Chornomorsk with aggregate 4 million tons of annual transshipment
capacity, with over 7 million tons of grains throughput targeted in FY2020 by TransBulkTerminal and TransGrainTerminal facilities;
– Commissioning of two new silos and upgrade of several other silos, completed at the end of FY2019;
– Full-season use of grain railcar fleet acquired in February 2019. We expect to transport 6.7 million tons of cargo (grains, oilseeds, sunflower
meal) in FY2020 by our wagons.
◼ Profitability-wise, we expect flat margins in grain export operations and infrastructure businesses.

◼ Farming segment, is expected to face headwinds in FY2020 as

Farming
– normalization of crop yields combined with nearly 7% cost base inflation and further drop in global soft commodity prices should take their toll;
– another distinctive element of this season is that we remain naturally long now which shall add both upside and downside risk to our Farming
segment earnings potential this season.

www.kernel.ua Company presentation September 2019 7

 Content

1. FY2019 results and FY2020 outlook

2. Kernel today
3. Balanced growth strategy

4. Financials

Appendices

Export terminal in the Chornomorsk Port

4.8 million tons annual transshipment capacity
 FY2019 results
and FY2020 Balanced
outlook Kernel
Kernel today
today growth strategy Financials

2.1 Kernel today

Oilseed Processing segment Key financials FY2015 FY2016 FY2017 FY2018 FY2019
EBITDA 1, US$ million
◼ #1 sunflower oil producer (8% of global production) and Revenue US$ m 2,330 1,989 2,169 2,403 3,992
exporter (15% of global export) in the world 213 EBITDA US$ m 397 346 319 223 346
◼ Leading bottled sunflower oil producer and marketer in Net profit1 US$ m 107 225 176 52 189
Ukraine EBITDA
129 % 17.0% 17.4% 14.7% 9.3% 8.7%
109 margin
◼ 8 oilseed processing plants located across the 100 Net margin % 4.6% 11.3% 8.1% 2.2% 4.7%
sunflower seed belt in Ukraine 77
EPS US$ 1.34 2.83 2.19 0.64 2.31
◼ 3.5 million tons annual sunflower seed processing 1. Net profit attributable to equity holders of Kernel Holding S.A.
capacity
◼ Export-oriented business model with limited reliance on FY2015 FY2016 FY2017 FY2018 FY2019 Stock information Shareholder structure
local economy Exchange Warsaw Stock
Exchange
Infrastructure and Trading segment EBITDA, US$ million Stock quote currency PLN 39.9%

◼ #1 grain exporter from Ukraine with 12% of country’s total Issued shares 81,941,230
Bloomberg ticker KER PW 81.9m
grain exports in FY2019 shares
Reuters ticker KERN.WA
◼ Export terminal in Ukraine with 4.8 million tons annual 114 107 110 106
101 ISIN code LU0327357389 60.1%
grain transshipment capacity
– Similar facility in Russia (50/50 JV with Glencore)
◼ #1 private inland grain silo network in Ukraine with 2.5 Namsen LTD / Andrey Other
million tons of storage capacity Verevskyy

◼ #1 private grain railcars fleet in Ukraine (3.4k hoppers) FY2015 FY2016 FY2017 FY2018 FY2019 Market capitalization, US$ bn
2.5
Farming segment EBITDA, US$ million
182 2.0
◼ #1 crop producer in Ukraine operating 530 thousand
hectares of leasehold farmland 146 146 1.5
◼ Modern large-scale operations, sustainable agronomic 1.0
98 89
practices, cluster management system and export-
oriented crop mix 0.5
◼ Nearly 100% of sales volumes flows through our grain -
and infrastructure and oilseed processing segments,

May 13

Feb 16
Jul 10

Jul 17
Jun 08

Nov 09

Dec 11

Jan 14

Jun 15
Apr 11

Aug 12

Oct 14

Nov 16

Dec 18
Aug 19
Mar 09

Mar 18
earning incremental profits
FY2015 FY2016 FY2017 FY2018 FY2019

Note 1 Hereinafter, segment EBITDA is presented prior to certain unallocated G&A costs and net of discontinued operations and assets held for sale

www.kernel.ua Company presentation September 2019 9

 FY2019 results
and FY2020 Balanced
outlook Kernel
Kernel today
today growth strategy Financials

2.2 What we do
Volumes for FY2019
1 Own farming: Kernel 6 Grain export: Kernel exported 6.1 million tons of grains and
operates 530 thousand ha of oilseeds from Ukraine, entering into forward contracts within the
leasehold farmland in Ukraine same time frame that its origination team buys grains and oilseeds
producing 3.3 million tons of from farmers (hedged against price swings). 3.4 thousand own
grains and oilseeds in railcars fleet secure the smooth and efficient flow of grains from
1 3.3 MT
FY2019 that flow via its other inland silos to the ports.
(34%)
business divisions.

131 million litres 7 Export terminals: Kernel

2 operates
Procurement: Kernel 5
3 • Deep-water grain terminal
sourced ca. 2.9 million tons
in Chornomorsk (4.8
of sunflower seeds and ca.
million tons annual
3.5 million tons of grains from
transshipment capacity)
over 4,000 farmers in Ukraine
6.4 MT 4 • Deep-water grain export
in FY2019.
(66%) terminal in Taman, owned
via 50/50 JV (2.0 million
3 Silo network: Kernel 2 tons annual
operates 2.5 million tons of transshipment capacity
grain silo storage capacity allocated to Kernel).
across various regions of 6
Ukraine.

1.5 MT sunflower oil

4 Oilseed processing: 5 Bottled sunflower oil:
1.2 MT sunflower meal
Kernel’s 8 oilseed crushing Up to 10% of sunflower 7
plants1 have a processing oil produced is further
capacity of 3.5 million tons refined, bottled and sold
of sunflower seeds crushed domestically and abroad. 8 Avere research, knowledge
per year. 1,000kg of and trading platform:
sunflower seeds yields, on • Sale of Kernel’s sunflower
average, 440kg of sunflower oil.
oil, 390kg of sunflower meal • Help with hedging of
and 160kg of sunseed husk. 6.1 MT of grains
Kernel’s grain.
• Proprietary trading.

Kernel bridges Ukrainian farmers with the global marketplace using its
efficient, scalable and integrated resources and processes
Note 1 Including one plant operated under tolling agreement (274 thousand tons of sunflower seed annual crushing capacity).

www.kernel.ua Company presentation September 2019 10

 FY2019 results
and FY2020 Balanced
outlook Kernel
Kernel today
today growth strategy Financials

2.3 Efficient and well-invested asset base

Sunflower seed crushing capacity, thousand tons per year Poltava

Grain transshipment capacity, thousand tons per year 462
Vovchansk
356

Starokostiantyniv Prykolotne
1,000 149
Prydniprovskyi
617
Ellada1
274

Kropyvnytskyi
432

Bandurka
558
Black Sea Industries
620

Oilseed processing plants

Grain silos
TransBulkTerminal
Leasehold farmland bank 4,800
Export terminals
Refining and bottling facilities
Co-generation heat and power plants TransGrainTerminal
(renewable energy) 4,000
Taman (50/50 JV)
Assets under construction
4,000
50 km

Diversified and strategically located world-class asset base provides significant competitive advantages
Note 1 Operated under tolling agreement

www.kernel.ua Company presentation September 2019 11

 FY2019 results
and FY2020 Balanced
outlook Kernel
Kernel today
today growth strategy Financials

2.4 Kernel’s key milestones

Asset-light Acquisition of IPO & listing on Extending oilseed • Entering the Russian market by Exit of highly Acquisition of • Active
export platform sunflower oil brand the Warsaw crushing capacity in acquisition of Russian Oils volatile and local oilseed crushing construction
involved in Schedry Dar, Stock Ukraine by concluding • Acquisition of farming currency-exposed plant in Kirovograd phase under
origination and together with Exchange, 216,000 tons of companies Ukrros and Enselco, sugar business, region in Ukraine Strategy 2021
export of crushing, refining raising US$ 161 crushing tolling expanding farming, storage and divesting two (+560,000 tons of • Start of Avere
Ukrainian grain and bottling facilities million of fresh agreement with Black sugar production capacity sugar plants in crushing operations
and oilseeds in Eastern Ukraine capital Sea Industries • Issued US$ 140 million of equity Ukraine capacities)

1995 2004 2007 2009 2011 2013 2016 2018

2002 2006 2008 2010 2012 2014 2017 2019

Evolution to a Doubling in size • Acquisition of • Purchase of Allseeds’ • Creation of 50/50 JV with Commissioning • Completion of a hallmark • Acquisition of a railcar
processor of soft by acquiring Transbulkterminal, production assets (+ Glencore to acquire 100% of 200,000 tons transaction issuing US$ 500 business in Ukraine
commodities by Evrotek, a Ukraine’s 2nd largest 565,000 tons of interest in a deep-water of greenfield silo million Eurobond with 3 thousand grain
acquiring a crushing and grain terminal sunflower seed grain export terminal in storage capacity • Expansion of farmland bank hoppers
sunflower seed farming • Acquisition of 50,000 crushing capacity) Taman port, Russia in different to over 600,000 ha, and • Acquisition of the
crushing plant in business in ha of farmland • Issuance of US$ 80 • Purchase of Black Sea regions of storage capacities to 2.8 5.85% interest in ViOil
Poltava, Ukraine Western • Issuance of US$ 84 million of additional Industries (+270,000 tons Ukraine million tons via acquisitions of (oilseeds processing
Ukraine million of new equity equity of crushing capacity) UAI and Agro-Invest Ukraine business)

Asset growth through M&A

Unparalleled track record of continuous development

www.kernel.ua Company presentation September 2019 12

 FY2019 results
and FY2020 Balanced
outlook Kernel
Kernel today
today growth strategy Financials

2.5 Oilseed Processing segment FY19 FY19

Sales EBITDA

Sunflower oil sales EBITDA and EBITDA margin Key market factors
million tons 3.2 determining segment performance
3.1 190
3.0
2.5
2.7 Sunflower oil price
1.6 120 US$ per ton of unrefined oil sold in bulk, FOB-Chornomorsk
213
1.4 83
1.2 10% Other 67 850
1.1 8% China 54
1.1 FY2019
18% Europe 129
100 109 800
27% Iraq 77
750
37% India
700
FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
Sunflower oil sales volume Oilseed processing volumes US$ m US$ / t of oil sold
650

◼ The record 3.2m t of sunflower seeds processed in ◼ Margin recovered to US$ 67 per ton, as: 600
Jul 16 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19
performance

FY2019 – Strong 15.2m t sunflower seeds harvest in Ukraine Source: Bloomberg

FY2019

◼ The record 1.6m t sales of sunflower oil in FY2019 reduced the gap between installed crushing ◼ determines the combined profitability of farmers and
capacities and seeds supply in Ukraine , but… sunflower seed processors in Ukraine.
– … Subdued global sunflower oil prices kept
margins under pressure
Supply & demand for sunflower seeds in Ukraine
◼ Consequently, segment EBITDA increased 43% y-o-y, million tons
to US$ 109m 18.5
17.4 18.0
5% MHP
◼ Strong 15.2m t harvest of sunflower seeds expected in ◼ Margin is expected to improve driven by strong supply
outlook
FY2020

15.2 15.2
190 14 13.5 19% Kernel
176
Ukraine (flat y-o-y) with country crushing capacities of sunflower seeds and recovery in global sunflower 175
11 12
13
12
remaining unchanged → we plan to process 3.3m t of oil prices 9
9
10 20% Multinationals

sunflower seeds 120

◼ Additionally, over US$ 6m EBITDA contribution is 24% Local big

expected from our co-generation heat and power 83

67
54 32% Local small
plants to be commissioned in FY2020
FY13 FY14 FY15 FY16 FY17 FY18 FY19
Sunflower seed harvest
Industrial sunflower seed processing capacities
Kernel's EBITDA, US$ per ton of oil sold
Source: USDA, Kernel’s estimates

◼ defined allocation of profit between farmers and

oilseed processors.
Note 1 Operated under tolling agreement

www.kernel.ua Company presentation September 2019 13

 FY2019 results
and FY2020 Balanced
outlook Kernel
Kernel today
today growth strategy Financials

2.6 Infrastructure and Trading segment FY19 FY19

Sales EBITDA

Segments volumes EBITDA and EBITDA margin Key market factors

million tons 6.1
7% Other
determining segment performance
5.1 26
4.7 14% Middle 24 24
4.4 4.5 4.6 East 22 Grain production in Ukraine
4.1 4.0 4.3
million tons
3.6 3.7 17 66 70 75
3.3 3.3 21% Asia 61 61
114 107 110 9
2.8 101 10 8
2.5 106 9 9
25 29
27 27 27
58% EU
28 36 37
23 24
MY15/16 MY16/17 MY17/18 MY18/19 MY19/20E
Corn Wheat Barley Other
FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
Silo intake volumes ◼ Important for high capacity utilization of grain
US$ m US$ / t of grain exported (ex. Avere)
Export terminal's throughput (Ukraine) export infrastructure in Ukraine Source: USDA
Grain export volumes (ex. Avere)
Competition among grain traders in Ukraine
◼ Record volumes in all business lines: ◼ EBITDA margin per ton of grain exported through our
– 6.1m t of grain exported (#1 in Ukraine); Top grain exporters from Ukraine in FY2019
performance

value chain reduced to US$ 17, diluted by increasing

% of total grain export
– 4.6m t transshipped through our terminals in Ukraine; scale of our low-margin trading operations and Avere
FY2019

Kernel 12%
– 4.3m t of intake by our silo network. negative performance, while keeping contribution from
Nibulon 10%
◼ These achievements were driven by: our high-margin infrastructure businesses limited.
COFCO 9%
– Record crop yields of our farming segment in FY2019; ◼ As a result, total segment EBITDA in FY2019 added Cargill 8%
– Full capacity utilization of our infrastructure; US$ 5m as compared to the previous year, to US$ ADM 8%
– Usage of a 3rd-party export terminal. 106m Bunge 6%
Louis Dreyfus 6%
Glencore 5% Source: Stark

◼ Target to originated over 11m t of grain and oilseeds in ◼ We expect flat margins y-o-y in grain export Competition among grain infrastructure assets
outlook
FY2020

Ukraine in FY2020, up 20% y-o-y (including the crop of operations and infrastructure businesses. Top export terminals in Ukraine in FY2019
our farming business), and export over 8m t of grain : million tons of grain throughput
– Commissioning of our brand-new TIS 7.4
TransGrainTerminal in the port of Chornomorsk with Nika-Tera 4.5
4m t annual throughput capacity; TBT (Kernel) 4.2
– Commissioning of two new silos and upgrade of Glecore 4.2
several other silos, completed at the of FY2019; COFCO 3.6
– Full-season use of grain railcar fleet acquired in Bunge 2.8
Nibulon 2.7
February 2019, with 6.7m t expected cargo by our
ADM 2.3
fleet in FY2020. Source: Stark

www.kernel.ua Company presentation September 2019 14

 FY2019 results
and FY2020 Balanced
outlook Kernel
Kernel today
today growth strategy Financials

2.7 Farming segment FY19 FY19

Sales EBITDA

Kernel’s key crop production EBITDA and EBITDA margin Key market factors
3.3 374 378 determining segment performance
2.5 344
2.1 Ukraine corn price, FOB-Black Sea
1.8 1.9 256 182 US$ per ton
596
529 146 146 220
149 FY2019
383 391 385 13% Other
98 200
19% Wheat 89
25% Sunflower 180

42% Corn 160

FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 140
Acreage harvested, k ha Crops production, m t Oct 16 May 17 Dec 17 Jul 18 Feb 19 Sep 19
US$ m US$ / ha
◼ Being in naturally long position, performance of our
The record 3.3m t harvest driven by historical high crop ◼ Strong US$ 344 per ha EBITDA margin as farming business strongly depends on global prices
– Record crop yields
performance

yields:
◼ Favorable weather conditions; – Effective hedging strategy applied to secure crop
FY2019

Consumer price index and UAH/US$ exchange rate

◼ Quick and successful integration of farming business sales at price peaks 35 200%
acquired in 2017; ◼ The record US$ 182m segment EBITDA generated
◼ Constant operations productivity improvements 25 130%

UAH
◼ Acreage harvested to reduce to 513k ha as we divested ◼ Farming segment to face headwinds in FY2020 as 15 60%
outlook
FY2020

remotely located and inefficient farmland normalization of crop yields combined with nearly 7% FX (UAH per 1 US$) (LHS)
Cumulative CPI (RHS)
◼ Stronger outlook for wheat and sunflower crop yields but cost base inflation and further drop in global soft 5 -10%
'13 '14 '15 '16 '17 '18 '19
decline of corn yields is expected on less supportive commodity prices should take their toll;
weather. ◼ As of September, we remain naturally long with both ◼ Substantial part of segment costs (salary, land
upside and downside risks embedded. lease, logistics etc.) is linked to UAH → exposure
Kernel crop yields Kernel’s farm-gate prices to inflation and FX risks
FY2014
Key performance

tons per hectare, net US$ per ton, excl. VAT

FY2015
9.9 FY2015 Other factors:
FY2016

347

338
8.9 FY2016 ◼ Weather in Ukraine

321
314
drivers

309
FY2017
7.2 7.2 FY2017 ◼ Energy costs (fertilizers, fuel)
7.3 FY2018
FY2018
5.8 FY2019
5.5 5.4 5.1 5.4 5.1 FY2019
4.3 Ukraine
173

155

3.0 2.73.2
150

148
146

2.8
145
140

140

138

2.1 2.5
132

Corn Wheat Sunflower Corn Wheat Sunflower

www.kernel.ua Company presentation September 2019 15

 FY2019 results
and FY2020 Balanced
outlook Kernel
Kernel today
today growth strategy Financials

2.8 Credit highlights

Credit portfolio as of 30 June 2019, US$ m Kernel-2022 Eurobonds mid-YTM

Amount outstanding 12% 10.6%
as of 30 June 2019 Interest rate Maturity
10%
8.5%
Eurobonds 496.1 8.75% Jan 2022 8%
6%

Libor + 1.44% + 4%
62.1 / 250 limit Dec 2028
CoF 2%
0%
Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19
/ CTF - / 56 limit Libor + 4.5% / 1% Feb 2027

Credit ratings
1 Libor + 4.2% Rating / Outlook Date
Oil PXF 32.9 / 390 limit Aug 2021
Libor + 3.95% B+ / Stable 12 Oct 2018
B+ / Stable 12 Feb 2017
Grain PXF 15.0 / 300 limit
1
Libor + 4% June 2021 B / Stable 31 Oct 2018
B / Stable 20 Feb 2017
Mostly
Other bank debt, obligations under
164.2 short-term Working capital1 and debt position
finance lease and accrued interest
debt US$ m

Total 770.3 1,200

1,000
800
600
“ 400
200
-
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2015 FY2016 FY2017 FY2018 FY2019
Working Capital Net Debt Readily marketable inventories

Note 1 Defined as current assets (excluding cash and cash equivalents, and assets classified as
Note 1 In September 2019, the Oil PXF limit was extended to US$ 390m from US$ 290m as of 30 June 2019, and
held for sale) less current liabilities (excluding short-term borrowings, current portion of long-term
Grain PXF was extended to US$ 300m from US$ 100m as of 30 June 2019.
borrowings, current portion of obligations under finance lease and interest on bonds issued)

www.kernel.ua Company presentation September 2019 16

 Content

1. FY2019 results and FY2020 outlook

2. Kernel today

3. Balanced growth strategy

4. Financials

Appendices

Silo in Balyn, Khmelnytskyi region

One-time storage capacity: 142 thousand tons of grain
 FY2019 results Balanced
and FY2020 growth
Balanced
outlook Kernel today strategy
growth strategy Financials

3.1 Kernel’s mid-term strategy

We aim to profitably double export volumes by FY2021, providing comprehensive solutions to our clients (customers and suppliers), with balanced
development of our businesses by the efficient use of our asset base, investment in technology and innovation, strategic acquisitions, continuous
development of our employees and strengthening of our operations.
Imperatives Strategic pillars Targets Ultimate goal

Consolidate the oilseed

Financial stability/ Geographic focus crushing industry
Strong balance sheet
Maximize
Double grain exports from
Integrity Strong asset base FY2016 levels shareholders’
value
Professional team of
leaders Achieve sustainable cost
Operational discipline
leadership in crop production

Grain and
Sunflower oil infrastructure Farming

◼ Construction of 1-million-ton per year greenfield ◼ Double grain exports in FY2021 through greenfield ◼ Achieve sustainable cost-efficient crop production
Mid-term crushing plant in western Ukraine construction of 4.0-million-ton deep-water transshipment via investment in technology
targets in ◼ Substantial upgrade of the remaining crushing facility in Ukraine ◼ Smooth integration of recently acquired assets to
detail plants to drive efficiency ◼ Expand and streamline silo network to serve growing in- lift operational efficiency and productivity levels to
house production and export volumes Kernel’s high standard

◼ Start of full-speed construction phase of our ◼ Commissioned 1st stage (grain intake and storage ◼ Generated the record EBITDA
Key processing plant in western Ukraine and co- capacities) of our new TransGrainTerminal, a 4-million-ton ◼ Kernel sets the standard for highly productive crop
deliverables generation heat and power units adjacent to our deep-water grain transshipment facility in Chornomorsk port growing operations in Ukraine
in FY2019 crushing plants ◼ Commissioned two silos and upgraded two other silos
◼ Acquisition of 5.85% interest in ViOil (one of the ◼ Became #1 private grain railcar fleet in Ukraine following the
largest independent local sunflower oil producers) acquisition of RTK-Ukraine LLC, investing US$ 65m and
reducing risks for Strategy 2021 execution
◼ Became #1 grain exporter from Ukraine with the record
6.1m t shipped in FY2019 (+58% y-o-y)

www.kernel.ua Company presentation September 2019 18

 FY2019 results Balanced
and FY2020 growth
Balanced
outlook Kernel today strategy
growth strategy Financials

3.2 Strategy 2021 serves as a solid basis for future growth across all
business segments

Strategy 2021 investments pipeline overview: Status Segment

US$ million FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Total (as of Sep 2019)

I Leasehold farmland bank expansion (+ 200k ha) 152 47 - - - - 198 Farming

Construction of greenfield oilseed processing plant in Western

Ukraine with co-generation heat and power unit Oilseed
II - 52 10 66 52 - 180
◼ Annual sunflower seed processing capacity: 1 million tons Processing
◼ Expected commissioning date: January-March 2021
Construction of co-generation heat and power units (renewable Oilseed
III 0 12 30 90 18 - 150
energy) on 6 our plants throughout (FY2019-2020) Processing
Construction of new grain export terminal in the port of
Chornomorsk Infrastructure
IV 1 3 46 58 19 - 127 and Trading
◼ Annual throughput capacity: 4 million tons of grain
◼ Commissioning in FY2020

V Grain railcars investments (500 brand-new + 2,949 used) - 16 65 9 - - 90 Infrastructure

and Trading

VI Construction and upgrade of silo facilities (FY2019-2020) - 19 36 10 - - 65 Infrastructure

and Trading
Total key expansion investments 153 149 187 232 89 - 810

Maintenance and other CapEx 35 62 65 68 64 65

Total investments 188 211 251 300 153 65

◼ The major portion of FY2020-FY2021 investments will be financed by debt attracted from international financial institutions (European Investment
Bank and EBRD)

www.kernel.ua Company presentation September 2019 19

 Content

1. FY2019 results and FY2020 outlook

2. Kernel today

3. Balanced growth strategy

4. Financials
Appendices

Bandurka oil extraction plant

Annual sunflower seed processing capacity: 558 thousand tons
 FY2019 results
and FY2020 Balanced
outlook Kernel today growth strategy Financials
Financials

4.1 Consolidated statement of profit or loss

US$ million, except ratios and EPS FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Revenue 215 350 663 1,047 1,020 1,899 2,072 2,797 2,393 2,330 1,989 2,169 2,403 3,992
Net IAS 41 gain / (loss) - - - - - - - 15 (17) (7) 20 (3) 19 9
Cost of sales (194) (306) (557) (874) (844) (1,610) (1,814) (2,599) (2,231) (2,009) (1,707) (1,882) (2,261) (3,654)
Gross profit 21 44 106 174 177 289 258 213 145 314 302 284 160 348
Other operating income 1 8 25 17 18 26 66 67 60 83 45 41 59 28
G&A expenses (11) (13) (20) (24) (27) (38) (67) (78) (77) (68) (59) (60) (80) (107)
Profit from operating activities 12 39 112 167 167 277 257 201 129 328 287 265 140 269
Financial costs, net (9) (19) (28) (32) (23) (42) (63) (75) (72) (69) (57) (62) (65) (82)
FX gain(loss), net (1) (1) 3 (3) 11 2 5 3 (99) (153) 30 (3) 5 13
Other non-operating items (2) (2) 5 (4) (4) (28) (3) (8) (48) (5) (13) (3) (30) (10)
Income tax 0 2 (9) 5 0 18 9 (6) (11) (0) (4) (19) 6 (12)
Net profit from continuing operations 0 19 82 132 152 226 206 115 (102) 101 244 179 56 178
Profit / (loss) from discontinued operations - - - - - - 5 (10) (6) (5) (17) - - -
Net profit 0 19 82 132 152 226 211 105 (107) 96 227 179 56 178
Net profit/(loss) attributable to shareholders 1 20 83 136 152 226 207 112 (98) 107 225 176 52 189

EPS, US$ - 2.1 2.0 2.2 3.0 2.6 1.4 (1.2) 1.3 2.8 2.2 0.6 2.3
ROE 1 37% 36% 36% 32% 29% 19% 9% (8%) 11% 24% 16% 5% 16%
ROIC 2 21% 25% 26% 22% 23% 17% 9% (1%) 11% 21% 15% 10% 13%
Net Income / Invested Capital 14% 36% 21% 23% 24% 15% 6% (5%) 6% 17% 13% 4% 9%

EBITDA, incl. 17 46 123 190 190 310 319 288 223 397 346 319 223 346
Oilseeds Processing - - 81 89 101 202 198 199 178 213 129 100 77 109
Infrastructure and Trading - - 40 112 80 94 59 59 126 114 107 110 101 106
Farming - - 20 7 23 32 74 67 (44) 98 146 146 89 182
Unallocated expenses and other - - (18) (18) (14) (18) (12) (38) (36) (29) (36) (36) (44) (51)

Gross margin 10% 13% 16% 17% 17% 15% 12% 8% 6% 13% 15% 13% 7% 9%
EBITDA margin 8% 13% 19% 18% 19% 16% 15% 10% 9% 17% 17% 15% 9% 9%
Net margin 1% 6% 13% 13% 15% 12% 10% 4% (4%) 5% 11% 8% 2% 5%

◼ Change in accounting policy relating to the classification of distribution expenses charged to its customers starting from 1 July 2018: carriage and freight, storage and dispatch
costs and other distribution expenses have been previously presented cumulative as distribution costs, but starting from 1 July 2018 Group decided to present distribution costs
within Cost of sales. For the purposes of this presentation, the distribution costs are included in Cost of sales retrospectively.

Note 1 Net profit attributable to shareholders divided by average equity attributable to shareholders over the period
Note 2 Sum of net profit attributable to shareholders and financial costs, divided by average over the period sum of the debt and equity

www.kernel.ua Company presentation September 2019 21

 FY2019 results
and FY2020 Balanced
outlook Kernel today growth strategy Financials
Financials

4.2 Balance sheet

Balance sheet highlights
US$ million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Cash & cash equivalents 6 25 89 129 59 116 83 79 65 129 60 143 132 77
Net trade accounts receivable 9 10 49 32 65 112 146 151 100 56 75 87 92 183
Prepayments to suppliers & other current assets 7 9 30 26 94 81 90 110 57 61 53 83 113 130
Prepaid taxes 9 22 23 73 206 221 236 210 156 105 138 143 122 127
Inventory 32 40 145 99 148 184 410 270 300 159 200 387 368 358
of which: readily marketable inventories 29 38 139 91 143 141 336 157 243 140 184 354 325 293
Biological assets 3 10 42 19 26 96 153 247 183 147 190 256 289 309
Other current assets - - - - - - - 23 12 2 4 21 87 73

Intangible assets and goodwill 10 28 103 81 118 152 228 321 233 172.0 159 219 208 223
Net property, plant & equipment 72 128 232 222 379 503 728 763 643 535 539 570 588 765
Other non-current assets 5 3 43 19 29 109 41 187 170 99.9 91 100 210 220
Total assets 156 275 756 700 1,125 1,573 2,116 2,362 1,919 1,466 1,509 2,009 2,211 2,464

Trade accounts payable 1 6 6 8 11 27 25 47 33 27 42 53 74 136

Advances from customers & other current liabilities 5 9 22 26 131 102 155 202 80 63 77 89 105 105
Interest-bearing debt 93 157 256 295 345 422 693 725 743 463 339 655 751 768
Short-term debt 29 44 127 160 210 266 266 450 483 367 254 152 246 203
Long-term debt 54 102 98 133 135 156 427 276 260 95 84 8 11 69
Corporate bonds issued 10 10 31 2 - - - - - - - 494 495 496
Other liabilities 9 18 32 14 32 24 33 35 32 21 55 56 104 109
Total liabilities 108 190 315 342 520 575 906 1,009 888 575 512 851 1,033 1,118
Total equity 48 85 440 357 605 997 1,211 1,352 1,031 891 997 1,158 1,178 1,346

Debt / equity ratio 2.0x 1.8x 0.6x 0.8x 0.6x 0.4x 0.6x 0.5x 0.7x 0.5x 0.3x 0.6x 0.6x 0.6x
Debt / assets ratio 60% 57% 34% 42% 31% 27% 33% 31% 39% 32% 22% 33% 34% 31%

Liquidity position and credit metrics

Debt liabilities 94 158 259 300 350 428 698 734 749 469 343 657 754 770
Cash 6 25 89 129 59 116 83 79 65 129 60 143 132 77
Net debt 88 133 170 170 291 312 616 655 684 339 283 514 622 694
Readily marketable inventories 29 38 139 91 143 141 336 157 243 140 184 354 325 293
Adjusted net debt 58 95 32 79 148 170 280 498 441 199 99 160 297 400

Net debt / EBITDA 5.2x 2.9x 1.4x 0.9x 1.5x 1.0x 1.9x 2.3x 3.1x 0.9x 0.8x 1.6x 2.8x 2.0x
Adjusted net debt / EBITDA 3.4x 2.0x 0.3x 0.4x 0.8x 0.5x 0.9x 1.7x 2.0x 0.5x 0.3x 0.5x 1.3x 1.2x
EBITDA / Interest 1.8x 2.5x 4.4x 5.9x 8.3x 7.3x 5.1x 3.8x 3.1x 5.8x 6.1x 5.1x 3.4x 4.2x
Note: financial year ends 30 June.

www.kernel.ua Company presentation September 2019 22

 FY2019 results
and FY2020 Balanced
outlook Kernel today growth strategy Financials
Financials

4.3 Cash flow statement

US$ million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
EBITDA 17 46 123 190 190 310 319 288 223 397 346 319 223 346
Finance cost paid (9) (18) (28) (32) (23) (36) (67) (76) (72) (68) (58) (35) (64) (72)
Income tax paid (0) (1) (3) (2) (1) (3) (7) (43) (40) (13) (3) (6) (5) (3)
Non-cash adjustments and non-operating items (0) (1) 7 (32) 12 (36) (27) 1 (41) (70) (18) 5 (40) 23
Operating Cash Flow before Working Capital changes 7 26 99 124 179 235 218 169 70 245 268 283 113 293
Change in working capital (36) (15) (210) (25) (97) (180) (242) 135 (1) 147 (136) (206) (31) (94)
Acquisition of subsidiaries and JVs, net - (60) (97) (5) (70) (11) (136) (152) (41) 2 (36) (146) (22) (45)
Net purchase of PP&E (6) 2 (24) (89) (56) (48) (93) (91) (42) (23) (30) (40) (140) (157)
Other investments 1 0 (49) (1) 1 (66) (0) (23) (1) (4) 6 (37) 6 (39)
Free cash flow to the Firm (34) (46) (281) 4 (44) (71) (253) 38 (14) 369 71 (146) (74) (43)

Debt financing 32 62 81 36 (77) (18) 220 (45) 7 (289) (115) 178 98 50

Equity financing (1) 3 235 - 81 141 5 (2) - (1) - 15 - -
Dividends paid - - - - - - - - - (20) (20) (20) (20) (20)
Financing cash flow 31 64 315 36 4 124 225 (48) 7 (310) (134) 173 77 30

Cash at the year end 6 25 59 98 58 110 83 73 65 124 60 87 90 76

Cash conversion cycle n/a 66 86 79 117 91 117 90 85 67 63 84 83 49

Payment period, days n/a (4) (4) (3) (4) (4) (5) (5) (7) (6) (7) (9) (10) (10)
Inventories processing, days n/a 43 61 51 53 38 60 48 47 42 38 57 61 36
Receivables collection, days n/a 10 16 14 18 17 23 19 19 12 12 14 14 13
VAT receivables, days n/a 17 13 17 50 41 40 28 26 18 20 22 19 11

Sources and uses of cash in FY2019, US$ million

(72)
(3) 23
Finance cost, Non-cash (94)
Income tax adjustments Net purchase
net
346 W/C (45) of PP&E
293 changes Net acquisition
of subsidiaries (157) Dividends
Other Debt
paid financing
investments
(39) (43) (14)
EBITDA Operating 50
(20) Cash
Cash Flow Free cash balance
before W/C flows to decrease
Differences are possible due to rounding changes the firm

www.kernel.ua Company presentation September 2019 23

IR contact and investor calendar

Michael Iavorskyi
Investor Relations Manager
[email protected]
Tel.: +38 (044) 461 88 01, ex. 7275
3 Tarasa Shevchenka Lane,
Kyiv Ukraine, 01001

Investor calendar
▪ Q1 FY2020 Operations Update 22 October 2019
▪ Q1 FY2020 Financial Report 27 November 2019
▪ Annual general shareholders’ meeting 10 December 2019
▪ Q2 FY2020 Operations Update 21 January 2020
▪ H1 FY2020 Financial Report 28 February 2020
▪ Q3 FY2020 Operations Update 20 April 2020
▪ Q3 FY2020 Financial Report 29 May 2020
▪ Q4 FY2020 Operations Update 20 July 2020
▪ FY2020 Financial Report 30 October 2020

www.kernel.ua Company presentation September 2019 24

 Content

1. FY2019 results and FY2020 outlook

2. Kernel today

3. Balanced growth strategy

4. Financials

Appendices

Poltava sunflower oil refining and bottling facility

558 thousand tons per year processing capacity
A1. Key highlights

◼ Kernel operates in globally competitive growing Ukrainian agri sector

◼ Integrated, resilient and simple business model built around scale & global reach

◼ Leader across all market segments supported by unparalleled world-class asset base with high barriers to entry

◼ Top standard of corporate governance

◼ Solid financial performance and position

◼ Clear 2021 strategy reinforced with unmatched track record

◼ Reversion of low commodity price cycle and forthcoming farmland market reform in Ukraine are free options imbedded into Kernel’s
business model

www.kernel.ua Company presentation September 2019 26

 A2. Markets and business environment

Oilseed Processing Infrastructure and Trading Farming

Global production of vegetable oils Global production and export of Global grain exports Top grain exporting countries Grain yields in MY2018/19
million tons sunflower oil million tons million tons t / ha
million tons 19.7 430 415 425 431
200 18.2 18.4 430 415 425 431
26 377 Ukraine
377 11.1 EU
28 3.4 28 25 28
3.0 3.3 28 Argentina
150 47 45 45
Global

1.4 31 47 139 132 126 125 8.4 USA

1.3 1.3 40 123 7.8 7.8
56 10.3 3.7 10.6
3.3 9.7 3.8 161 170 36
100 149 176 36 32 32 5.4 4.5
0.9 0.9 120 48 37 44 45
16 1.0 4.9 0.7 53 4.2 4.2
4.2 0.6 4.2 0.7 35 43 51 3.7
12 74 2.4 2.6 37 52 3.23.2 3.0
50 2.3 35
24 45 40 49 54
173 183 182 173 181 39
19 6.4 5.3 5.9 5.8 6.4 5.9
9 20 82 97 95 83 84
-
08/09
98/99
00/01
02/03
04/05
06/07

10/11
12/13
14/15
16/17
18/19

Prod. Exp. Prod. Exp. Prod. Exp. 15/16 16/17 17/18 18/19 19/20E Corn Wheat Barley
15/16 16/17 17/18 18/19 19/20E
17/18 18/19 19/20E
Ukraine Russia EU Argentina Other USA Ukraine Argentina
Sunflower Palm Soybean Wheat Corn Rice Barley Other Russia EU Other
Rapeseed Other
Sunflower seed balance in Ukraine Ukraine grain production and export Top grain exporters from Grain yields in Ukraine
Destinations of Ukrainian million tons million tons Ukraine in FY2019 t / ha
sunflower oil in FY2019 70 75 7.8
66 % of total grain export 7.4
million tons 17.4 18.0 18.5 18.5 61 61
15.2 15.2 15.2 9 6.6
14.2 8 54 Kernel 12%
13.5 10 49 5.7
India 11.7 9 45 9 5.4
39 40 29 5
21% China 25 4 Nibulon 10%
27 5 20 4.2 4.1 4.1
36% Netherlands 27 27 4 16 3.8 3.7
4
Iraq 18 COFCO 9%
6% 17 18
Spain 36 36
7% 28 24 30 30 3.2 3.3 3.4
Italy 23 21 18 Cargill 8% 2.9 3.0
15/16 16/17 17/18 18/19 19/20E 17
7%
10% 13% Other Sunflower seed harvest 15/16 16/17 17/18 18/19 19/20E
Ukraine

Prod. Exp. Prod. Exp. Prod. Exp. Prod. Exp. Prod. Exp. ADM 8%
Industrial sunflower seed processing capacities 15/16 16/17 17/18 18/19 19/20E Corn Wheat Barley
Corn Wheat Barley Other
Industrial sunflower seed processing capacities in Ukraine in FY2020 Top 5 grain transshipment terminals in Ukraine in FY2019 Top 5 private silo networks in Top 5 agricultural holdings in Ukraine
million tons of sunflower seeds per year Ukraine thousand ha
1.0 3.8 4.4 5.9 storage capacities, million tons
To be 10.0
constructed in TIS 7.4 Kernel 2.5 Kernel 530
FY2021 5.2
Small local Nika-Tera 5.2 ULF 1.9 ULF 500
Multi-
4.8 4.0
Kernel nationals Big local Kernel 4.6
Nibulon 1.9 AP Group 396
4.2
IGT 4.2
MHP 1.2 MHP 370
3.6
3.5 MHP DSSC 3.6
1.0 Optimus Agro 1.1 Astarta 250
19% of market Transhipment capacity, m t
Able to survive in low- Highly levered Inefficient players Grains and meals transhipment volumes, m t
capacities, modern and
margin environment
well-invested facilities Sources: USDA, Stark Research, Agrochart, Elevatorist, Latifundist, Kernel analysis

www.kernel.ua Company presentation September 2019 27

A3. Markets and business environment
Low cycle of soft commodity prices
Index of soft commodity prices, US$-inflation adjusted
30 June 2004 = 100%

300%

250%

200%

150%

100%

50%
Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10
1 Jun-11 2
Jun-12 Jun-13 Jun-14
3 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19

Note Wheat Corn Sunflower oil

1. Wheat: No.1 Hard Red Winter, ordinary protein, FOB Gulf of Mexico, US$ per metric ton
2. Corn: U.S. No. 2 Yellow, FOB Gulf of Mexico, U.S. price, US$ per metric ton
3. Sunflower oil: crude, bid, FOB Black Sea, Ukraine, US$ per metric ton

Source: USDA, APK-inform

◼ Soft commodity prices (inflation adjusted) continue to be depressed for the 5th consecutive year

Kernel, with substantial portion of its EBITDA being generated by the farming (upstream) business, is best positioned to
benefit from the global recovery of soft commodity prices

www.kernel.ua Company presentation September 2019 28

A4. Environmental, social and corporate governance (ESG)

Kernel's global goal in the field of sustainable development and social responsibility is the development of society through the voluntary contribution of
business to the social, economic and environmental spheres related to the activities and achievement of the company's strategic goals.

Environmental Social Governance

Maximization of energy efficiency, minimization of adverse Developing people's potential, ensuring safety and health The Company constantly strives to maintain a high level of
environmental impact, greenhouse gas reduction, processing security, creating conditions for self-realization and gender, education, age, and professional experience diversity
Goals

and minimization of waste, preservation of the property of the professional development of employees, contributing to the within its governing bodies, understanding the vital role of the
earth to self-restoration. solution of important social issues and the development of diversity in maximizing shareholders’ value.
communities in the presence regions

◼ Environmental protection and preservation of land ◼ Good neighborliness, improvement of life quality and well- ◼ 3 Independent directors
Principles & Initiatives

resources. being of the population and social support in the presence ◼ Compliance with international standards, Compliance
◼ Responsible rational use of resources and production regions of the Company Code, internal Kernel Policies
◼ Renewable energy project to reduce GHG emission ◼ Competitive remuneration ◼ Zero tolerance to fraud and corruption
◼ Ensuring safe and decent working conditions, the priority ◼ Responsible leadership and ethical practices
of preserving the life and health in relation to the results of
◼ Effective and experienced management team
production activities
◼ Transparent disclosure and reporting
◼ Numerous training and education programs for all our
business units and professions.

Total energy consumption Rate of recordable work-related injuries Governance structure

thousand gigajoules accidents / million worked hours General meeting of shareholders
6,499 6,977 6,857
6,000 0.66 0.60
5,095 0.53 0.55 Nomination and
0.45
Audit Committee Board of Directors Remuneration
Committee
FY2019 results

Executive Management Team

FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY2019

Total direct (Scope 1) GHG emission Total social spending Composition of the Board of Directors
thousand tons of CO2 equivalent US$ thousand
260 2,616 13%
236 232 234 2,440 2,300 25% 25%
198 1,919 38%
1,668
Gender Age 50% Tenure
63%
25%
63%
FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY2019 Male Female 30-40 40-50 50+ >5y 5-10y >10y

www.kernel.ua Company presentation September 2019 29