AGROGENERATION : Status of the 2017 harvesting campaign

Paris, 28 December 2017

AgroGeneration, a Ukraine-based grain and oilseed producer, published its most recent estimates for the 2017 harvesting campaign.

Harvesting campaign production estimates

2016 (actual)
2017 (estimated *)

Crop
Hectares
Production (tons)
Yield (t/ha)
Hectares
Production (tons)
Yield (t/ha)

Wheat
36 479
159 091
4.4
29 640
152 663
5.2

Barley
11 228
46 472
4.1
8 589
33 948
4.0

Rapeseed
4 876
9 874
2.0
4 086
10 472
2.6

Soya
8 354
16 132
1.9
6 586
12 517
1.9

Sunflower
29 988
77 843
2.6
30 275
55 880
1.8

Corn
5 794
38 948
6.7
9 280
51 910
5.6

Pea
10 520
32 891
3.1
13 361
32 819
2.5

Others
1 747
5 952

3 617
6 468

TOTAL
108 986
387 203

105 433
356 677

* estimated at 15 December 2017

This season, the Group cultivated around 105,000 hectares. The results for winter crops were favourable overall, in particular for wheat and rapeseed.

Conversely, as announced in the previous press release, weather conditions in Ukraine have been particularly difficult starting this past summer with a significant drought, notably in the East and Centre of the country.

While the performance of Agrogeneration remains well above Ukrainian averages in term of yields for key crops, its harvest of sunflower, and to a lesser extent corn, are particularly hard hit.

Comparison of gross yields (State Statistics as of December 1^st 2017)

Crop
AGG vs. Ukraine

Wheat
+28%

Barley
+26%

Corn
+40%

As a result of those weather hardships, the value of production is expected to decrease compared to last year by approximately €9.4 million. This will directly affect the Group's results; EBITDA should nevertheless remain well into positive territory.

2018 Outlook

The exceptional weather conditions in 2017 do not call the Group's overall strategy into question.

The 2018 growing season has started favourably. Of the 105,000 hectares to be planted, 48,000 have already been sown with winter crops. Financing for the new farming season appears to be appropriately secured.

Furthermore, at the end of the autumn, the Group launched a plan to optimise next season's production costs (in particular, more moderate use of inputs) and fixed costs. It aims to save around €4.2 million in cash expenses with a full-year effect in 2018. These measures should also soften the impact of any unfavourable weather without hurting the Group's earning potential. The Group aims to return to its recent years' EBITDA performance in 2018.

Breakdown of winter sowings as of 15 December 2017

Crops
Hectares

Wheat
38,700

Rapeseed
6,687

Barley
2,901

Next press release: Full-year results on 23 April 2018

AgroGeneration on Euronext Growth

SHARES

Code ISIN FR0010641449

Mnémonique ALAGR

OSRANES

Code ISIN FR0012600872

Mnémonique YAGRO

About AGROGENERATION

Founded in 2007, AgroGeneration is a global producer of grain and oilseed. Following its merger with Harmelia, the new group has become one of the top five producers of grain and oilseed in Ukraine, with close to 120,000 hectares of farmland. Through the high-potential farmland it leases, the group's ambition is to meet the food challenges of tomorrow as global consumption doubles in scale between now and 2050.

Find all information on AgroGeenration on our website: www.AgroGeneration.com

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AgroGeneration

+33 (0)1 56 43 68 60

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www.AgroGeneration.com
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+33 (0)1 53 67 36 72

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