Obligation Ekosem-Agricole 7.5% ( DE000A2YNR08 ) en EUR

Ekosem-Agricole

100 % ▲

Allemagne

DE000A2YNR08 ( en EUR )

7.5% par an ( paiement annuel )

31/07/2024 - Obligation échue

Prospectus brochure de l'obligation Ekosem-Agrar DE000A2YNR08 en EUR 7.5%, échue

1 000 EUR

100 000 000 EUR

Ekosem-Agrar est une société russe spécialisée dans la production et la transformation de produits agricoles biologiques, notamment de céréales, de légumineuses et d'huiles végétales.

L'Obligation émise par Ekosem-Agricole ( Allemagne ) , en EUR, avec le code ISIN DE000A2YNR08, paye un coupon de 7.5% par an.
Le paiement des coupons est annuel et la maturité de l'Obligation est le 31/07/2024

KFM barometer for SME bonds
KFM barometer for SME bonds The "7.50% Ekosem-Agrar AG bond" (update)
7.50% Ekosem-Agrar AG bond still rated "averagely attractive (positive outlook)" (3.5 out of 5 possible stars)
Düsseldorf, 2 February 2021
In its current KFM barometer for SME bonds
on the 7.50% Ekosem-Agrar AG bond
maturing in 2024 (WKN A2YNR0), KFM
Deutsche
Mittelstand
AG
confirms
its
previous assessment of "averagely attractive
(positive outlook)" (3.5 out of 5 possible
stars).
Headquartered in Walldorf, Germany, Ekosem-
Agrar AG is the German holding company of
Russian milk producer EkoNiva Group, one of the
largest Russian agricultural companies and, in
volume terms, the largest producer of raw milk in
Russia and Europe1. As of the end of September
20incl , udthee Gr1o0up0,0's0 r0 ougdhly air2y 0,0co wsc, atlepr, owhiducceh d
approximately 2,500 tons of raw milk6 per day in
nine regions in Russia covering a total area of around 631,000 hectares (approx. 50% owned by the Group)2. Raw milk
output in 2019 amounted to 759,000 tons3. The company itself currently only processes a small portion of the raw milk it
produces, while the vast majority of the output is (still) destined for third-party dairies3. Construction of the
dairies is being pushed ahead1. A dairy with a daily processing capacity of more than 1,100 tons of ra
cw ommpilk anis y'ds oue wnfor
completion in the Novosibirsk region in late 2021, set to produce not only conventional finished dairy products but also
cheese for the Russian market and for export, mainly to China and East-Asian countries1. In our opinion, these activities are
primarily targeted at the Asian market. According to management, initial activities are already underway to build up a sales
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aim to gain experience in the Chinese market.
Fed for the herd ispredominantly supplied through the company's own agricultural cultivation of arble and2. Besides the
production of 1.8 million tons of lucerne and maize silage, approximately 0.57 million tons of grain were also produced in
2019, which will ensure the feed supply of the herd until beyond the upcoming harvest season and will also partly be sold3.
Apart from further increasing the production of milk, management believes that the main strategic focus will remain on the
ongo"EkoinNg iveax" panumsbiorenl aof brtahend 5c. omAcpcaorndy'sin g otwno m manilk ageprmoecnte, sseinvge n opdaeriray tioconsw , fawitciliht iedsa irarye pcrourrdeucnttlsy toun dbeer mcoanrsketrteucdt iounn. deAsr othe f 30
September 2020, the Group employed more than 14,000 people2.
Strong growth, expansion of market leadership in Europe and increase in key performance indicators for many
years
The Ekosem Group has been growing steadily for years, is opening new production facilities with strategic considerations
in6 m2 cinodm, apandn ieiss)t3o. daIn yl Eurine opwiteh 'st lahe rsgteesat dmilk ily grporodwinucg enr wiumtbh era ogf rlowinivestgo cnumk anbde arr oef sas ubsuniddeiar rcieults inivatRusion,s tia (he afis noaf 31nc iaDl
performance indicators previously planned for 2019 and 2020 were clearly exceeded2. Even the global COVID- ec
19 . 2019:
pandemic had little impact on the business model and, after a temporary drop in milk prices in Q2 2020, only slightly
slowed the sustained growth until Q3 20202.
In our opinion, the future growth of the Ekosem Group in Russia, especially in the milk processing segment, will be
supported by the existing sanctions in Russia, as they shield the Russian market from European competition. In our
opinion, the Ekosem business model, which focuses on the production of milk and dairy products, is strongly supported by
the Russian government. This is not least reflected in the fact that the Russian operating subsidiary was included in the
government's list of strategicaly relvant companies in Russia8. Furthermore, the Russian government grants subsidies in
the triple-digit million euro range per year. In the audited consolidated financial statements for 2019, government grants
totaling EUR 364.5 million (previous year: EUR 202.7 million) were recognized as liabilities3. In our opinion, these Russian
government grants in the form of direct cash subsidies and low-interest loans have a very strong equity character and, if
partially allocated to equity, would increase the equity ratio of 14.4% in the balance sheet for the period ended 31
December 2019. In addition to the cash amounts deferred on the liabilities side and recognized directly in equity, the
Russian government also grants non-repayable subsidies for the purchase of breeding animals as well as operating grants,
which directly increase equity through profit/loss3.
Themill Gioron)up2, 'as nfidn ain coiaur l oiapbinilitioin,e st inhecroeamspedn tyo'sEURcap 8ita4lr.9e qmuiillreiomne anst so f 31will rDeecmamin behirg 2h 01in 9t (hep refutvioureus a sy ieta cr:o EURntin 7ue8s 5t.o9 grow. As
of 31 December 2019, consolidated operating cash flow increased to EUR 23.3 million (previous year: EUR -15.7 million),
consolidated cash flow from investment activities declined to EUR 343.6 million (previous year: EUR 391.7 million) and

consolidated cash flow from financing activities decreased to EUR 310.1 million (previous year: EUR 406.2 million).
Management plans to refinance a EUR 50 million bond due for repayment on 23 March 2021 (outstanding volume: EUR
36.6 million1) (Bond No. 1 (2012/2021)) by a mix of various measures2.
Consolidated sales revenues increased to EUR 402.7 million as of 31 December 2019 (previous year: EUR 244.9 million),
while the Group's toal output also rose sharply to EUR 586.1 million, up from EUR 377.6 million in the previous year3.
Consolidated EBITDA climbed to EUR 188.6 million as of 31 December 2019 (previous year: EUR 117.1 million)3.
Consolidated EBIT and EAT also improved significantly, with EBIT growing from EUR 75.2 million to EUR 114.1 million
and EAT rising from EUR 19.7 million to EUR 36.0 million3
adjustments are made in the consolidated statement of co . Aft
mpr eer t
he he
ns itivee m in"EA
co T
me " (aegaarn
insint gts
he a ftbeacr ktagrxo), a
un nd um
of t be
he r oinf ternational
activities and the different country-
that is partly unrelated to the actua sl poecpifericat ac
ing oaun
ct tin
ivit g iesst aanndd atrd
huss, whi
ma ch
ke t in
he o iur
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uc inh iomno areff eccot m he
ple Gx rtoo up
as 'sse esqs uithtye
creditworthiness.
ina way
Group equity rose to EUR 316.5 million as of 31 December 2019 (previous year: EUR 174.3 million)3
assets increased to EUR 2,200.8 million (previous year: EUR 1,355.2), the consolidated equity ratio .c lAs
im tbhe
ed Gtro oup
onl 'sy t1o4. a4l %
(previous year: 12.9%)3. The reported consolidated equity includes items which, in our opinion, are not entirely
attributable to the operating activities. In our opinion, this applies, in particular, to the foreign currency translation
reserve as of 31 December 2019 in the amount of EUR -97.1 million (previous year: EUR -135.9 million)3 due to the
translation of the ruble, the functional curency of the Group's ubsidiaries, which are almost exclusively ocated inRussia,
into euros, the reporting currency of the German parent company, Ekosem-Agrar AG, at exchange rates that fluctuate on
the respective reporting dates. Moreover, a revaluation of all land and buildings, which is required under International
Financial Reporting Standards (IFRS) every three years, was carried out as of 30 September 2019 and led to an increase in
the Group's revaluation resrve toEUR 214.0 million (previous year: EUR 152.6 million)3.
In the separate financial statements for the period ended 31 December 2019 of the German parent company, which acts as
the financing and management holding company, equity of EUR 3.1 million (previous year: EUR 8.1 million) and total
assets of EUR 183.2 million (previous year: EUR 150.0 million) led to a deterioration in the equity ratio to 1.7% (previous
year: 5.4%)3. In response to a negative equity situation which occurred in the separate financial statements of the holding
company in the course of the year and was announced in an ad-hoc release in May 2020, management reorganized the
equity capital by disclosing hidden reserves of the subsidiaries and recognizing them in equity capital in the balance sheet
in the holding company's eparte fina cial staements2. According to management, this reorganization was completed in
consultation with a renowned German auditing firm. In our opinion it is safe to assume that against the background of
the value potential at the level of the Group and the subsidiaries outlined above the equity position in the holding
company's eparte fina cial statements for the period ended 31 December 2020 has improved materially.
In our opinion, the revenue and earnings figures in the financial year 2020, for the first nine months of which the Group
published the unaudited figures in December, showed a positive trend. According to these figures, the Group generated
revenues of EUR 338.7 million and achieved a total output of EUR 477.7 million as of 30 September 20202. EBITDA and
EBIT are reported at EUR 171.7 million and EUR 107.9 million, respectively2.
Management plans for the Group to produce a total of 900,000 to 940,000 tons of raw milk in 2020, to generate EUR 480
to 500 million in revenues from this output, and to achieve EBITDA of between EUR 165 and 185 million and EBIT of
between EUR 85 and 105 million2.
Sustainability rating by imug | rating*
The sustainability contribution of Ekosem-
criteria defined by KFM Deutsche Mittelst Ag
an rd a
AGAG
. S ois farra, ted
Ek oasse "n
m-eut
Ag rraalr". T
AGhe h acso m
ge pnaenryat deod eos nnloy tv veio
ry l altoe w he
re veexnclus
ues iofrno m
products/services with a positive sustainability impact. While efforts are being made within the company to consider ESG
aspects, the latter have not been implemented systematically to date.
7.50% Ekosem-Agrar AG bond maturing in 2024
The non-subordinated and unsecured Ekosem-Agrar AG bond with a fixed term from 1 August 2019 to 31 July 2024 and a
volume of up to EUR 100 million carries a coupon rate of 7.50% p.a. (interest date annually on 1 August)7. The issuer
undertakes to publish consolidated annual and semi-annual financial statements and to bar distribution7. The terms and
conditions also include a change-of-control clause and negative pledge clause7.
The terms and conditions of the bond provide for early redemption by the issuer at 103% of the nominal value from 1
August 2021, 102% from 1 August 2022 and 100% from 1 August 20237. The bonds have a denomination of EUR 1,000
and are traded on the OTC market of the Stuttgart Stock Exchange7.
Conclusion: Still rated as averagely attractive with positive outlook
In summary, our assessment is as follows: The European sanctions imposed on Russia do not affect the company, as they
apply only to certain industries and regions. The Russian counter-sanctions (ban on the import of food from certain
countries) likewise have no significant effects as, on the one hand, major milk exporters like New Zealand are not affected
and, on the other hand, exports oRussia take place xtensively via Belarus. "EkoNiva" has become awel-known brand in
Russia's retail and hospitality sectors. The risk of currency restrictions on the part of Russia is considered to be low, as
Russia recognizes the importance of international payment flows for investment in the country. Despite its size, the
Ekosem Group held only close to 5% of the Russian raw milk market in 2019, which shows that this market is still highly
fragmented. Further growth opportunities arise in the nearby Asian market. Agricultural commodities are increasingly in
the focus of international capital anyway with a view to efficiently feeding the global population. In our opinion, the
repstrucentuariniogn of ef tquihe tyhol indtheg choomldpinangy 'csomepanryt'se fienpanrcatiael fistnaecmiaeln statfoerm 2e0n2ts0. haIn sc inocnjreaunsctedio tn he cwitrh etdhite woretrtuhirn noesf 7. a5ft0er% p.a.
(on the basis of the issue price of 100% on the Frankfurt Stock Exchange on 1 February 2021, calculated to maturity on 31
July 2024), the Ekosem-
possible stars).
About this KFM baro Ag
met ra
er AG 7.50% bond continues to be rated "averagely at ractive (positive outlo k)" (3.5 out of 5
Analysts: Christian Wagner, Corporate Analyst, and Sabine Knee, Securities Analyst, on behalf of KFM Deutsche Mittelstand
AG. Prepared on 2 February 2021, 07:40 h on the basis of an analysis of the fundamental data based on the 2019 annual

financial statements and the securities prospectus dated 26 June 2019 of Ekosem-Agrar AG. The KFM barometer
assessment is based on the KFM Scoring method developed by KFM Deutsche Mittelstand AG, which takes into account not
only company-specific balance sheet ratios but also the peculiarities of the bond terms for interest-bearing securities
issued by SMEs.
The present KFM barometer updates the KFM barometer dated 4 July 2019, in which the bond also scored 3.5 out of 5
possible stars. All statements made in this KFM barometer refer to the time of its preparation. While it is generally planned
to issue an update of the KFM barometer with regard to the bond analyzed within the next twelve months, it is not yet certain
at the time of publication whether an update will take place within that period or at all.
Sources: 1https://www.ekosem-agrar.de; 2Press release dated 10 December 2020 on the reporting date 30 September
2020; 3financial statements 2019 ; 4unaudited interim financial statements 2020; 5Press release dated 22 May 2020: 61
liter of milk is equivalent to approx. 1.02 kg of milk; 7Securities prospectus dated 26 June 2019; 8government list of
strategically relevant companies in Russia; 9the qualitative sustainability assessment prepared by imug | rating
complements the KFM barometer with material ESG (Environment, Social, Governance) aspects that may have an impact
on the issuer's fina cial performance
About KFM Deutsche Mittelstand AG
KFM Deutsche Mittelstand AG, headquartered in Düsseldorf, is an expert for SME bonds and initiator of the Deutscher
Mittelstandsanleihen FONDS (WKN A1W5T2) and the Europäischer Mittelstandsanleihen FONDS (WKN A2PF0P). At the
2016 Grand Prix for Small and Medium-Sized Enterprises, KFM Deutsche Mittelstand AG was recognized as a prize winner
for the KFM Scoring analysis procedure. KFM Deutsche Mittelstand AG was awarded the Transparent Bull 2020 by Rödl &
Partner and Finanzen Verlag for its investor-friendly transparency and information policy.
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product-specific information on the Deutscher Mittelstandsanleihen FONDS, please refer to the current full sales prospectus,
the Key Investor Information Document as well as the annual report and, if available, the semi-annual report. These
documents constitute the sole binding basis for the purchase of investment units. They are available free of charge at the
registered office of the management company (FINEXIS SA, 25A, boulevard Royal L-2449 Luxembourg) and at the paying
and information agents (DZ PRIVATBANK S.A., 4, rue Thomas Edison, L-1445 Strassen, Luxembourg or at the Erste Bank der
österreichischen Sparkassen AG, Graben 21, A-1010 Vienna), and on the Deutscher Mittelstandsanleihen FONDS website at
www.dma-fonds.de. For detailed product-specific information on the Europäischer Mittelstandsanleihen FONDS, please
refer to the current full sales prospectus, the Key Investor Information Document as well as the annual report and, if
available, the semi-annual report. These documents constitute the sole binding basis for the purchase of investment units.
They are available free of charge at the registered office of the management company (Monega KAG, Stolkgasse 25-45, 50667
Köln, www.monega.de) as well as from the paying and information agents (DZ Bank AG Deutsche Zentral-
Genossenschaftsbank, Platz der Republik, 60325 Frankfurt am Main), and on the Europäischer Mittelstandsanleihen FONDS
website at http://www.ema-fonds.de. The reliability of the information sources used for the analysis has not been verified,
which means that ultimately doubts about the reliability of all information sources mentioned could not be dispelled. The
management companies and KFM Deutsche Mittelstand AG assume no liability for damages that arise or have arisen in
connection with the use and/or distribution of this preparation.
*The information and opinions expresed by "imug |rating" do not reflct he opinion of KFM Deutsche Mittelstand AG, so
that the latter assumes no liability or guarantee for the up-to-dateness, correctness, completeness or quality of the
information.

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