increase in ag investments through m&a bohdan chomiak, ukragroconsult
TRANSCRIPT
Increase in ag investments through M&A
Bohdan Chomiak, UkrAgroConsult
Global Trends
Global Trends
12.7%
9.1%
11.9%
8.8%
8.0%
29.2%
8.1%
2.5%2.9%
2.2%3.4%
1.3%GLOBAL M&A SECTOR
BREAKDOWN YTDValue
Industrials & Chemicals
Financial Services
TMT
Consumer
Business Services
Energy, Mining & Utitlities
Pharma, Miedical & Biotech
Leisure
Construction
Transportation
Real Estate
Agriculture
SOURCE: MERRILL CORPORATION
Global Trends
21.2%
8.5%
15.5%
13.7%
11.2%
9.3%
7.2%
3.6%3.4%
3.1%2.1%
1.0% GLOBAL M&A SECTORBREAKDOWN YTD 2012
Volume
Industrials & ChemicalsFinancial ServicesTMTConsumerBusiness ServicesEnergy, Mining & UtitlitiesPharma, Miedical & BiotechLeisureConstructionTransportationReal EstateAgriculture
SOURCE: MERRILL CORPORATION
Global Trends
Ernst & Young Q3 2012 update indicates that total deals had fallen to 165 and value fell to $24 Billion
Global Trends
Global Trends
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 2010 2011 2012
0
20
40
60
80
100
120
140
160
180
DEAL VALUE $B
DEAL VALUE $BLinear (DEAL VALUE $B)
SOURCE: DEALLOGIC
Euro-Denominated Corporate IG Volume: This chart shows the number of deals and the volume in USD billions for Euro-denominated corporate IG bonds from the 1st quarter of 2008 up to and including the 3rd quarter of 2012.
Ukraine – The Dark Side
31.10.2012 Buy Sell O/N 35 46 1W 36.75 47.5 2W 37 48.25 1M 35.25 43
Overnight Cost of Money %
SOURCE: NBU
SOURCE: NBU
01.01.2008 01.01.2009 01.01.2010 01.01.2011 01.01.2012 01.10.2012Return on assets, %
1.5 1.03 -4.38 -1.45 -0.76 0.34
Return on equity, %
12.67 8.51 -32.52 -10.19 -5.27 2.32
Credit growth % 71% 74% 0% 1% 9% 1%
Commercial Bank Performance
Month over Month Change in Reserves $BN
SOURCE: NBU
1991 2005 2008 2009 2010 2011
Total 86,8 63,5 71,3 70 68,9 82,6
Crop Production 83,3 78,7 93,7 89,3 85,6 111,6
Animal Production 90,5 47,4 47,6 49,6 51,2 51,9
0
20
40
60
80
100
120
% Grow
th
1990=100 percent
Agriculture – Grows Economy - Crawls
SOURCE: STATE STATISTICS COMMITTEE SOURCE: STATE STATISTICS COMMITTEE
Ukraine – Goes with the Force
1991 2005 2008 2009 20100.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Ukraine GDP 1990 = 100%
Ukraine GDP
Ukraine – Key Growth Drivers
2000 2005 2008 2009 2010 2011-5000
0
5000
10000
15000
20000
25000
-121.41253.2
5462.17120
12750
19926
Proit, Loss (-) Million UAH
Proit, Loss (-)
● Equity Offerings to June 2011 - $1.5 billion● Debt – Corporate Bonds and Borrowings - $3.5 billion
THE PRIMARY DRIVER IS PROFIT
Ukraine – Use of Funds
Ukraine – Investment Impact
Growth of labor productivity1990 = 100%
TOTALCROP PRODUCTIONANIMAL PRODUCTION
Ukraine – Investment Impact
Creation of Global Competitors
Hatchery
Breeder Farm
Grain StorageFacility
Farms for Young Laying Hens
Feed Mill
Egg Processing
Plant
Farms Laying Hens Retail Chains
Branded Points of Sale
Wholesale
Export
Direct Sales
Export
Sunflower Seed
CrushingQuality Cold Pressed Oil (B2B)
Heating Fuel
Ukraine – Two Jeddai Knights
MERGER MASTER
ACQUISTION MASTER
Ukraine - Merger and Acquisition Opportunity
Pork SectorKyiv – 20% of Ukraine’s Total ConsumptionNo dominant player
Ukraine – Merger and Acquisition or COOPERATION
3. Invest into logistical capability(Elevators, Port facility etc)
2. I consolidation stage - up to 300 th. ha.(mid sized farms [25-75 th. ha. each])
5.Leading international
agro company
5-STEP STRATEGY
1. Create and lead first agricultural Co-op
4. II consolidation stage to boost total land bank up to 500-1,000 th. ha.
(small farms and leading farms [<25 th. ha. & >75 th. ha.])
Absolute leader producer of agricultural commodities in Ukraine and CIS
Source: Lapersa vision
Small- and midsized farmers can gain access to modern and efficient agricultural machinery, EU know-how , infrastructure (including storage and port facilities) and better margins by simply Co-operating.
Office 5, Timoshenko Str. 29- V, 04205, Kyiv, Ukraine Tel/Fax: +380 44 451 46 34 (multi-channel)
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