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Rusagro Ar 2014 Eng.Pdf , Or Scan the QR Code 2014 REPORT ANNUAL Contents 4 ABOUT ROS AGRO GROUP 20 MANAGEMENT REPORT 6 Vertically integrated business model 20 Statement of responsibility 8 Expanding markets 20 Investment policy 10 Ambitious investment programme 28 Operating results 12 Record results in 2014 28 Sugar business 34 Meat business 16 LETTER FROM THE CHAIRMAN 42 Agriculture business 50 Oil and fats business 18 LETTER FROM THE CEO 58 FINANCIAL RESULTS 4 16 28 34 42 50 58 78 157 72 CORPORATE SOCIAL RESPONSIBILITY 86 Risk management 72 Human resources management 86 Internal control and audit 75 Occupational health and safety 87 Share capital 77 Environmental protection 88 Information for shareholders 89 Dividend policy 78 CORPORATE GOVERNANCE 78 Corporate governance system 90 ROS AGRO PLC INTERNATIONAL FINANCIAL 79 General shareholder meeting REPORTING STANDARDS CONSOLIDATED 80 Board of directors FINANCIAL STATEMENTS FOR THE 82 Board committees YEAR ENDED 31 DECEMBER 2014 AND 82 Management INDEPENDENT AUDITOR’S REPORT 84 Management of LLC Rusagro Group of Companies Divisions 157 CONTACT INFORMATION 86 Key management remuneration // 1 CONTENTS Forward-looking statements This annual report was written using the information forecasts and other forward-looking statements will not available to ROS AGRO PLC and its subsidiaries (hereinafter actually come to pass. In light of these risks, uncertainties also “the Group”) at the time of its preparation. Some of and assumptions, the Group cautions that, owing to the the statements in this Annual Report regarding the Group’s influence of a wide range of material factors, actual results business activities, economic indicators, financial position, may differ from those indicated, directly or indirectly, in the business and operating performance, plans, projects and forward-looking statements, which are only valid as at the expected results, as well as tariff trends, costs, anticipated time of preparation of this Annual Report. ROS AGRO PLC expenses, development prospects, industry and market neither affirms nor guarantees that the performance results forecasts, individual projects and other factors are forward- set forth in the forward-looking statements will be achieved. looking statements, i.e. they are not established facts. The Group accepts no liability for losses which may be The forward-looking statements which the Group may incurred by individuals or legal entities who act on the make from time to time (but which are not included in basis of the forward-looking statements. In each particular this document) may also contain planned or expected data case, the forward-looking statements represent only one of on revenue, profits (losses), dividends and other financial many possible development scenarios, and should not be indicators and ratios. The words “intends”, “aims”, “projects”, seen as the most probable. Except in those cases directly “expects”, “estimates”, “plans”, “believes”, “assumes”, “may”, stipulated by applicable legislation and the Listing Rules of “should”, “will”, “will continue” and similar expressions the UK Listing Authority, the Group assumes no obligation usually indicate forward-looking statements. However, this to publish updates and amendments to the forward-looking is not the only way to denote the forward-looking character statements to reflect new information or subsequent events. of information. Due to their specific nature, forward-looking statements are associated with inherent risk and uncertainty, both general and specific, and there is the danger that assumptions, // 2 I ROS AGRO PLC Annual report 2014 I Sources for operating data and certain financial indicators The operating data and certain financial indicators used in given for that column. In addition, certain percentages this Annual Report are based on management accounting presented in the tables and charts in this document reflect data, which is subject to management estimates, judgment calculations based upon the underlying information prior and presentation. to rounding, and, accordingly, may not conform exactly The financial information presented in a series of tables to the percentages that would be derived if the relevant in this document has been rounded to the nearest integer calculations were based upon the rounded number. or decimal place. Therefore, the sum of the numbers in a column may not conform exactly to the total figure To view the interactive version of the Annual Report please click the link http://www.rusagrogroup.ru/ fileadmin/files/reports/ru/pdf/rusagro_ar_2014_eng.pdf , or scan the QR code. // 3 I ABOUT ROS AGRO GROUP I CONTENTS 1. About ROS AGRO Group ROS AGRO Group is one of the largest vertically integrated agribusiness groups in Russia. The company has four main businesses: See р. 28 See р. 34 Sugar business Meat business 1st 2nd 2nd Sugar cube Sugar Pork production production producer (43%) (15%) (6,3 %) Products Products Sugar cubes Pork Packaged sugar Half-bulk Commercial sugar Large cuts Molasses Consumer products Beet pulp // 4 I ROS AGRO PLC Annual report 2014 I ROS AGRO – one of Russia’s leading agribusiness groups. See р. 42 See р. 50 Agriculture business Oil and fats business 1st 5th Margarine Mayonnaise production production (49%) (9%) Products Products Grains Vegetable oil Sugar beet Margarine Sunflower Spreads Soybean and other crops Mayonnaise Ketchup Mustard // 5 I ABOUT ROS AGRO GROUP I CONTENTS Vertically integrated business model Distribution Brands: Processing and production Sugar business sugar 6 plants Fertilizer (beet sugar production waste) Ingredients production Agriculture business Sugar beet (share of in-house production – 71%) Land bank: thousand thousand 468.2 ha 26.5 ha Tambov and Belgorod Primorsky Krai, regions, including including 23,800 ha 388,400 ha of arable of arable land land // 6 I ROS AGRO PLC Annual report 2014 I The close economic ties between its business divisions enable ROS AGRO Group to optimize the use of resources, reduce logistical and other costs, and more efficiently meet the challenges of purchasing raw materials and selling finished products. Brands: Entry into consumer market for processed meat products planned for 2015 Meat business Oil and fats business commercial commercial Fats plant pork production pig farms 2 companies 16 1 Meal Vegetable oil (share of in-house (share of in-house Compound feed production – 100%) production – 100%) (share of in-house production – 88%) compound feed Organic oil extraction 2 plants fertilizer 1 plant elevators with capacity to store 5 193,000 tonnes of sunflower seeds Grains (share of in-house production – 100%) 4 elevators 1 with capacity to store up to commercial dairy 401,800 tonnes of grain and outdoor farm storage in sleeves for 300,000 tonnes // 7 I ABOUT ROS AGRO GROUP I CONTENTS Expanding markets The Group’s products are sold in more than 80 regions of Russia and exported to 14 countries. St. Petersburg St. Petersburg European Russia European Russia Moscow Moscow 1 Ural federal districts 3 Volga federal districts 1 2 3 Ural federal districts 2 Volga federal districts 4 Yekaterinburg Siberian federal districts 4 Yekaterinburg Siberian federal districts Primorsky Krai Primorsky Krai RegionsRegions with with company company RegionalRegional Export Export PromisingPromising presencepresence marketsmarkets marketsmarkets markets markets BelgorodBelgorod Region Region (1) (1) MoscowMoscow KazakhstanKazakhstan (13) (13) AfghanistanAfghanistan (27) (27) VoronezhVoronezh Region Region (2) (2) St. PetersburgSt. Petersburg KyrgyzstanKyrgyzstan (14) (14) Hong KongHong Kong TambovTambov Region Region (3) (3) EuropeanEuropean Russia Russia UzbekistanUzbekistan (15) (15) Thailand Thailand(28) (28) SamaraSamara Region Region (4) (4) Ural federalUral federal districts districts TajikistanTajikistan (16) (16) Vietnam (29)Vietnam (29) Yekaterinburg Volga federal districts Turkmenistan (17) China (30) Yekaterinburg Volga federal districts Turkmenistan (17) China (30) Primorsky Krai Siberian federal districts Azerbaijan (18) Japan (31) Primorsky Krai Siberian federal districts Azerbaijan (18) Japan (31) Moldova (19) South Korea (32) BelarusMoldova (20) (19) Iran (33) South Korea (32) MongoliaBelarus (21) (20) UAE (34)Iran (33) Israel (22)Mongolia (21) Oman (35)UAE (34) GermanyIsrael (23) (22) Oman (35) DenmarkGermany (24) (23) Turkey Denmark(25) (24) Egypt (26)Turkey (25) Egypt (26) // 8 I ROS AGRO PLC Annual report 2014 I constituent entities of the Russian 80Federation countries St. Petersburg 14 European Russia Moscow 1 3 Ural federal districts 2 Volga federal districts 4 Yekaterinburg Siberian federal districts 24 Primorsky Krai 20 23 19 13 21 18 15 32 25 17 14 30 27 16 31 22 33 26 Regions with company Regional Export Promising 35 Hong Kong presence markets markets markets 28 29 Belgorod Region (1) Moscow Kazakhstan (13) Afghanistan (27) Voronezh Region (2) St. Petersburg Kyrgyzstan (14) Hong Kong Tambov Region (3) European Russia Uzbekistan (15) Thailand (28) Samara Region (4) Ural federal districts Tajikistan (16) Vietnam (29) Yekaterinburg Volga federal districts Turkmenistan (17) China (30) Primorsky Krai Siberian federal districts Azerbaijan (18) Japan (31) Moldova (19) South Korea (32) Belarus (20) Iran (33) Mongolia (21) UAE (34) Israel (22) Oman (35) Germany (23) Denmark (24) Turkey (25) Egypt (26) // 9 I ABOUT ROS AGRO GROUP I CONTENTS Ambitious investment programme ROS AGRO Group Strategic Goal – TO BECOME ONE OF THE LEADING FOOD PRODUCERS IN THE CIS Production Expansion of production capacity, Modernization
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