AO KSK April 2015
Content 1 KSK Overview 2 KSK History 3 Location and Infrastructure of KSK terminal 4 Overview of KSK Grain Reception Capacities 5 Overview of KSK Ro-Ro operations 6 Overview of KSK Completed Investment Projects 7 Key Operating and Financial Results 9 Contact Information 2
«_V1.YG.pptx\12 DEC 2013\7:59 PM\4 KSK Overview AO KSK is one of the largest grain terminal in the Russian Black Sea region, in 2012 incorporated by DELOPORTS LIMITED a holding company that consolidates DELO-GROUP stevedore assets. KSK operates as a grain transshipment terminal since 2006, when DELO-GROUP acquired the terminal land area and consolidated it with the berth rental rights into a single entity. By 2010 DELO-GROUP developed the project documentation and launched the capacity upgrade project, which was completed in 2013 by constructing the world class brand new grain terminal with total capacity of 3.5 mln tons. The terminal is able to serve Supramax and Panamax vessels with deadweight of up to 55,000 tons. Operates 6 berths and total land area of 12.4 ha of which 4 berths are owned and the others - leased from the federal and municipal government under long term lease agreements. KSK launched Ro-Ro transshipment operations in 2013. KSK terminal serves largest grain traders, operating in the Black Sea region. KSK Ownership Structure KSK Terminal Capacities Cargill 25% Grain transshipment capacity - 3.5 mln tons. Ro-Ro complex capacity - 50 thous. cars per year. Rail capacity - 1,600 tph. Auto capacity - 300-350 trucks per day. DELOPORTS 75% Grain storage capacity - 116 thous. tons. Ro-Ro storage area capacity - 1,565 cars simultaneously. 3
«_V1.YG.pptx\12 DEC 2013\7:59 PM\5 KSK History 2006 2010 DELO-GROUP acquired KSK terminal area and consolidated it with the berth rental rights into a single entity. Launch of the grain transshipment operations at KSK. Development of the project documentation for brand new 3.5 mln. tons grain transshipment terminal at KSK. 2010 Launch of investment program aimed at expansion of grain transshipment capacity, increase of storage capacity and construction of rail link. 2011 3 silos with storage capacities of 3,300 tons each and band conveyor to berths put into operation increasing capacity to 2 mln. tons of grain per year. 2012 KSK among other DELO-GROUP stevedore assets was consolidated into a holding company DELOPORTS LIMITED. 2013 Introduction of additional storage capacity of 105,700 tons. Completed construction of the railroad link which increased the transshipment capacity to 3.5 mln. Tons Launch of the new Ro-Ro cargo handling complex. A specialized berth and storage area were constructed, capable of storing 1 565 cars simultaneously. Throughput capacity 50 thous. cars per year. DELOPORTS LIMITED sold 25% plus one share in OJSC «Kombinat «Stroykomplekt» (KSK) to Cargill leading producer and supplier of foods, agriculture, industrial and financial products and services. 2014 KSK sets a record by handling 2.8 million tonsof grain. Development programme of the terminal approved: the project is expected to increase the throughput capacity of KSK up to 5.0 million tons. KSK today Strategically positioned to supply the major grain markets. Unique infrastructure asset offering an integrated logistical solution. Established diversified operations with strong track record. Experienced management team with proven track record. 4
«_V1.YG.pptx\12 DEC 2013\7:59 PM\6 Location and Infrastructure of KSK terminal KSK is a unique infrastructure asset offering an integrated logistical solution. KSK has the most modern equipment and technological solutions among the Russian Black Sea grain terminals Dedicated access to railroad transportation via a newly built and owned rail link provides for cost-efficient logistics for the grain suppliers. Auto parking area Capacity: 50 trucks Dedicated and direct access to the federal highway Don, provides for the most cost-efficient auto logistics for local grain suppliers. Operates modern world class equipment, supplied by the leading international producers (NEUERO, Sukup etc) providing seamless operations flow from grain reception and quality tests to grain transshipment to the vessels. NUTEP 800 tph 1,600 tph RUSSIA Moscow KSK Terminal Area Railroad UKRAINE Azov Sea Black Sea TURKEY Novorossiysk KAZAKHSTAN Ro-Ro Parking Lots Rail Grain Reception Points Auto Grain Reception Points Auto road Silos Loading Equipment Entry and exit gates NUTEP DELOPORTS Container Terminal 5
«_V1.YG.pptx\12 DEC 2013\7:59 PM\8 Overview of KSK Grain Reception Capacities Grain Complex KSK has world class brand new storage equipment, constructed in 2011-2013, with best in class wind and seismic-resistance solutions. 115,600 tons of simultaneous storage capacity is among the highest on the Russian Black Sea. Allows to store up to 12 types of grain simultaneously. Rail Delivery Facilities KSK has dedicated access to the railroad network from Novorossiysk rail hub to the grain terminal. Rail link has been constructed in 2013 and is owned by DELOPORTS which gives the Company a competitive advantage of having dedicated usage of the rail link and being able to control its condition. Two of three rail lines located in the KSK area are connected with the grain reception points which are able to process 4 railcars simultaneously, while the third line is used for maneuvering operations. Throughput capacity of the railway reception is 1,600 tones per hour. Auto Delivery Facilities KSK is the only grain terminal in Novorossiysk with a direct access to the federal highway M-4 Don, KSK terminal area is adjacent to the highway. KSK uses efficient logistics and collaborates with parking terminals, offering more attractive terms for truck transportation. KSK has the highest automotive throughput capacity in Novorossiysk, being able to serve 300-350 trucks per day, which is equivalent to 800 tonnes of grain per hour. The terminal has an organized parking area for approximately 50 trucks and 2 grain reception points with automated grain laboratory, allowing to do express quality tests of the grain received. 6
«_V1.YG.pptx\12 DEC 2013\7:59 PM\9 Overview of KSK Ro-Ro operations Overview of the Main Ro-Ro Operations In June 2013 KSK reached an agreement with Rolf Logistics on launching the RORO transshipment of imported cars starting September 2013. In August 2013 after carrying out land restoration works, the Group put into operation an auto handling complex on vacant territory of KSK. A special berth for Ro-Ro cargo and storage area, able to handle 1 565 cars simultaneously, were constructed. Ro-Ro complex throughput capacity exceeds 50 thous. cars per year. In September the new Ro-Ro complex was put into operation according to project schedule. Transshipment of imported cars (in partnership with Rolf Logistics) was launched 7
«_V1.YG.pptx\12 DEC 2013\7:59 PM\10 Overview of KSK Completed Investment Projects In 2013 KSK completed its investment program KSK launched grain transshipment operations in 2006, by transshipping grain to smaller vessels via direct loading incoming trucks with annual transshipment capacity of approximately 0.5 mln. tones. By 2010 DELO-GROUP developed the project documentation and originated the capacity upgrade project, which was completed in 2013 by constructing the world class brand new grain terminal with total capacity of 3.5 mln. tones. Grain cargo transshipment complex construction The investment program included the followings steps: November 2011: introduction of 3 silos with storage capacities of 3,300 tons each and band conveyor to berths increasing the transshipment capacity to 2 mln. tons, while the operations were still somewhat hindered by relatively low storage capacity. January 2013: introduction of additional storage capacity of 105,700 tons increasing the transshipment capacity to full 2 mln. tons. May 2013: completed construction of the railroad link which increased the transshipment capacity to 3.5 mln. tons. Railway complex construction Rail link has been constructed in 2013 for grain and container terminals. 5 track: railway-yard with effective length of rail tracks up to 500 m. Total effective lenght of 4,346 meters. Two of three rail links located in KSK are connected with the grain reception points which are able to process 4 railcars simultaneously and have unloading capacity of 1,600 tonnes per hour, while the third line is used for maneuvering operations. It allows simultaneous reception of 2 block trains. Cars handling complex construction In September of 2013 the largest car handling complex on the Russian Black Sea coast was put in operation at KSK terminal: Special berth for rolling cargo (Ro-Ro). Storage area can handle 1 565 cars simultaneously. The complex capacity is 50 thous. cars per year. 8
«_V1.YG.pptx\12 DEC 2013\7:59 PM\11 Key Operating and Financial Results KSK Operating Results Grain throughput, 2010 2014 (thous. tons) Key Financials 3 500 3 500 2 846 2 000 1 000 1 000 985 1 277 510 708 2010 2011 2012 2013 2014 IFRS, mln rub. 2010 2011 2012 2013 2014 Revenue 257 539 705 1,004 2,554 EBITDA 60 355 459 679 2,032 Net profit 22 182 342 175 1,045 Growth for the period 2011 2012 2013 2014 Turnover 39% 39% 30% 123% Revenue 110% 31% 42% 154% EBITDA 492% 29% 48% 199% Net profit 727% 88% (49%) 497% KSK Throughput Structure unit 2012 2013 2014 Grain 000 tons 985 1,277 2,846 Ro-Ro and other cargo 000 tons 75 122 39 including Ro-Ro 000 cars - 10 27
«_V1.YG.pptx\12 DEC 2013\7:59 PM\12 Contact Information AO KSK 353902, Russia, Novorossiysk, Sukhumskoe shosse, 21 Tel./fax: +7 (8617) 27-78-19 Web-site: www.gt-ksk.com E-mail: sekretar@gt-ksk.com 10