A/S Trigon Agri: January – June 2010 Interim Report

Copenhagen, 31 August, 2010

Despite extreme weather conditions this year, Trigon Agri (the ‘Group’) expects a total tonnage harvest for 2010 which is broadly in line with the results achieved last year. The Group’s management feels this is a very good result, especially given that a substantially higher share of crops harvested in 2010 are oil-crops (47% from total area in 2010 compared to only 21% in 2009). Oil-crops carry a lower production yield but due to their higher market value are typically substantially higher profit margin crops.

Taking into account winterkills and re-seedings reported in Q1 2010 report, the final harvested area of the Group for 2010 stands at 85 thousand hectares (82 thousand hectares in 2009). Latest estimated gross harvest stands at 189 thousand tonnes (195 thousand tonnes in 2009). Please note that as the late crops harvest of sunflower, soya and corn is still ongoing the total harvest figure is currently an estimate and is subject to changes depending on weather conditions during the harvest period in September and October.

All cereals production clusters of the Group showed an EBITDA positive result for 1H 2010 with the exception of Penza and Samara regions which were hit by a very severe drought. The rainfall during the main growing period from April to July in Penza stood at 26mm against a 10-year average of 217mm. The comparable number in Samara stood at 60mm against a 10-year average of 171mm. Milk production operations of the Group were strongly EBITDA positive, with continued significant increases in milk productivity per cow and higher milk prices achieved.

Total revenue and fair value adjustments in 1H 2010 amounted to EUR 36,889 thousand (EUR 29,847 thousand in 1H 2009) constituting a 24% increase year-on-year. This total figure consisted of Total revenue for the reporting period of EUR 16,608 thousand (EUR 17,684 thousand in 1H 2009); Other income of EUR 3,030 thousand (EUR 2,174 thousand in 1H 2009) and Gains arising from changes in fair value less estimated point-of-sale costs of biological assets of EUR 17,251 thousand (EUR 9,989 thousand in 1H 2009).

EBITDA in 1H 2010 amounted to a profit of EUR 2,026 thousand (loss of EUR 862 thousand in 1H 2009). The Ukrainian and Stavropol (Russia) cereals production clusters showed an EBITDA positive result for 1H 2010 of EUR 4,005 thousand (profit of EUR 1,624 thousand in 1H 2009). The Penza and Samara production clusters in Russia which were severely hit by drought showed an EBITDA loss for 1H 2010 of EUR 2,356 thousand (loss of EUR 2,370 thousand in 1H 2009). Milk production operations of the Group in Estonia and next to St Petersburg (Russia) showed an EBITDA positive result for 1H 2010 of EUR 1,001 thousand (EUR 77 thousand in 1H 2009). Sales and trading and storage operations of the Group clusters showed an EBITDA loss for 1H 2010 of EUR 624 thousand (loss of EUR 193 thousand in 1H 2009), explained by lower volumes of commodities handled.

Net profit/loss for the reporting period amounted to a loss of EUR 3,240 thousand (loss of EUR 2,835 thousand in 1H 2009). Earnings per share amounted to a loss of EUR 0.02 per share (loss of EUR 0.02 in 1H 2009). The net profit for the period was influenced by higher depreciation charges due to the ongoing investment program in the Group’s production locations, and an income tax provision. Please note that this provision is largely the result of an unrelated Danish Court ruling, it is precautionary and it is not final. The management of the Group is currently working with tax advisors in order to find a structure that would avoid such income tax uncertainty in the future reporting periods.

The consolidated assets of the Group as of June 30, 2010 amounted to EUR 184,318 thousand (EUR 155,392 thousand at December 31, 2009), with the increase driven by the sale of treasury shares by the Group during the reporting period and positive currency translation differences (both the Russian rouble and Ukrainian hryvna in which most of the Group’s fixed assets are recorded appreciated against the Euro during the reporting period). The net debt of the Group as of June 30, 2010 amounted to EUR 7,235 thousand (EUR 61 thousand at December 31, 2009).

Please note that the Group’s auditors have not yet issued a review report on the current financial statements. The review by auditors is being finalised in connection with the preparation for the main market listing of the shares of Trigon Agri and the current financial statements will be replaced with reviewed financial statements once audit work is completed.

Trigon Agri 1H 2010 Interim Report


Investor enquiries:
Mr Ülo Adamson, President of Trigon Agri A/S
Tel: +3726679200
E-mail: mail@trigonagri.com

The Company’s Certified Advisor is SEB Enskilda.


About Trigon Agri
Trigon Agri is a leading integrated soft commodities production, storage and trading company with operations in Ukraine, Russia and Estonia. Trigon Agri’s shares are traded on the First North stock exchange in Stockholm, an alternative market place of the OMX Nordic Exchange. Trigon Agri is managed under a management agreement by Trigon Capital, a leading Central and Eastern European operational management firm with around USD 1 billion of assets under management.

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