Good afternoon, and welcome to MHP Second Quarter 2022 Results Conference Call. We are joined by Anastasiya and Viktoria. I will now hand over to Anastasiya to begin the presentation. Hello. Thank you very much, Tim. Dear stakeholders, good afternoon and good morning. Thank you for joining us today at MHP's conference call. I'm Anastasiya Sobotyuk, Director of Investor Relations and International Communications. Together with Viktoria Kapelyushna, CEO of MHP, we will discuss MHP's financial and operational results for the second quarter and six months of 2022, as well as current operational environment and expectations for 2022, taking into account that war in Ukraine continues. Today's call is based on information released earlier today. However, during our call, we will discuss our projections and plans based on our assumptions, domestic and international trends. Please take it into account. We are now moving to the slide number three of the presentation. I hope you all received the presentation. Let me start on the general overview of the second quarter of 2022. The war situation in Ukraine has stabilized to some extent, although the situation remains highly fluid, and the outlook is subject to extraordinary uncertainty. Macroeconomic situation is completely in red zone with negative trends across all spheres. GDP, another significant drop of around 37% year-on-year in the second quarter after a drop in the first quarter of the year. CPI accelerated to 24% year-on-year in August, and foreign exchange rate continued to devalue, showing 34% devaluation since January 2022. There are a few positive changes, though, due to the arrangement signed on 22nd July by Ukraine, the Russian Federation, Turkey, and the United Nations to resume grain exports. Agricultural companies are now able to export from Ukraine, and more than 100 ships have delivered animal feed grain and vegetable oil to a number of MENA and EU countries. MHP is planning to use this route to export grains later this year. The Ukrainian army is pushing Russian terrorist forces out of Ukraine slowly but surely, which means that Ukraine still requires international support not to spread the disease across the continent. Although MHP continues to face complex challenges and disruptions in operations, sales, and logistics, the company has now been able to restore poultry production in its Ukrainian facilities to almost 100% of the capacity. Let me now proceed with the company's results for the second quarter of the year. We move to the slide number five. Sorry, my computer is a little bit slow. I'm moving the slides now. And we're here now. Good. Let me start with operational highlights for the third half of 2022. Driven by decrease in capacity utilization in Ukraine, poultry sales decreased by 12% and reached around 300,000 tons of chicken meat. Facing significant challenges in logistics, poultry export from Ukraine decreased by 17% to around 158,000 tons, with significant share of ton shipment made through the territory of the EU to the MENA and African countries. Total share of exports out of total poultry sales volumes decreased to 53% from 67% in the first half of 2022. Financial results for the first half of 2022 are following. Group's revenue increased by 16% and reached almost $1.1 billion, with export revenue representing 56% of the total revenue, which was 51% in the first half of 2021, mainly driven by high export prices for poultry meat, partially offset by lower volumes. Adjusted EBITDA decreased by 54% to $154 million as a result of war disruptions in operations, which led to lower volumes in production and sales, as well as significant increase in logistic costs and challenging logistics in general. Net debt to LTM EBITDA ratio increased to 0.75x. Please take into account the first time in MHP's history we report on war expenses, which were at around $50 million in the first half of 2022, mainly related to community support donations like food and goods, cease of operations at meat processing facility in Donetsk since March, write-offs of inventories, loss of produce in stores during March, and biological assets. As well as salaries to the mobilized employees of MHP, who will continue to support and ensure the victory of Ukraine in this horrific war. Let's go to slide number six of the presentation. Group's revenue increased by 10%, as you can see from the slide, and reached around $595 million, with export revenue representing 56%. Adjusted EBITDA increased by 60% year-on-year to around $111 million, with a EBITDA margin of 19%, which is significantly down year-on-year because of war deductions and accelerations. And now go to slide number seven of the presentation, which shows our financial results by segment for the first six months of the year. And we start from poultry operations. Poultry operations, as you know and see now, remained our key segment as usual, and during the first six months of the year, the group generated the majority of total revenue, 70%, and around 65% of the company's revenue EBITDA. Grain segment generated 5% of total revenue and about 22% of company's EBITDA. As you know, majority of grains produced, we use internally to produce feed mill for chicken. Meat processing and other agricultural operations generated about 5% of consolidated revenue, with zero contribution to EBITDA. Viktoria will comment on main drivers of this segment later during the presentation. The European operation segment generated approximately 20% of the total revenue and 23% of the company's EBITDA. Let's have a close look at each business segment, and I want to pass my word to Viktoria to continue. Thank you, Anastasiya. Good afternoon, everyone. Before I start presentation, I would like to highlight that I will talk and walk you through the second quarter results of this year and compare them with the second quarter last year, mainly so you can see how the current environment and war in Ukraine have impacted MHP's operational and financial results. Let's go to the slide number eight. Let's start from the result in poultry division. During the second quarter, poultry production volume slightly decreased, as MHP has been working at around 85% capacity utilization. Overall revenue of division increased by 10% year-on-year. Mainly revenue in poultry remained relatively stable year-on-year, whereas the revenue from vegetable oils increased substantially, driving overall increase of result year-on-year. During the second quarter, MHP average export sales price for poultry meat increased by more than 55% in dollar terms, mainly driven by product mix optimization as well as substantial international price increase across all markets, higher price in Europe and MENA, small bird price in MENA region. Export volume decreased by more than 35% due to the challenges and difficult logistics because of the war. Price on domestic market in the second quarter decreased by 7% year-on-year in hryvnia terms, mainly driven by lower shares in sales of chilled meat as well as product mix structure change. At the same time, volumes remained relatively stable. Poultry production cost in the second quarter remained almost at the same level in the first quarter, but significantly increased compared to year-over-year, more than 30%. Gross profit in Q2 substantially decreased by 21%, mainly due to the problem with logistics and much lower sales volume than expected in ongoing war. While in the first half of 2022, gross profit increased by 6% due to the exceptionally low result in the first quarter 2021. Adjusted EBITDA before the IAS 41 effects per one kilo in Q2 was 16% lower year-over-year as a result of war-related expenses mentioned earlier by Anastasiya. Let's move to slide number nine. This year, harvest is expected to be good for all agricultural producers. Despite difficult sowing campaign in spring and challenging agricultural operation in summer, taking into account good weather conditions in Ukraine for rapeseed and corn, the company has good yield for these crops this year. Yield for wheat, corn, and sunflower are lower than expected and low compared to the last year. At the same time, low grain price in 2022 season in Ukraine compared to the same period last year is mostly affected by disruptive and expensive logistics from Ukraine, despite high international prices as well as higher production costs resulted in significant decrease in EBITDA in H1 by 80% lower in 2022 compared to the same period last year. Slide number 10. Meat processing and other agricultural operations segment. Just to remind, at the beginning of April, MHP has decided to temporarily suspend the operation of Vinnytsia plant, partially relocate equipment to other MHP production facility. As of today, MHP continues to produce meat processing products, mainly operating with subcontractors. Production volume decreased substantially, so the sales volume decreased by 70% year-on-year to around 2,000 tons in Q2. As a result, the segment EBITDA in Q2 decreased to nil from $7 million, mainly due to effects of war and significant disruption in demand for poultry segment. Please let's go to the slide 11. Following the strategy of poultry production growth and increase in several facility capacity utilization in Serbia, in Croatia, poultry production volume of European operating segment in the second quarter increased by 60% year-on-year. Average poultry price increased by more than 40%. Average price for meat processing products increased more than 10%. Their trends are absolutely in line with international poultry prices. At the same time, revenue were higher year-over-year by 16% and EBITDA remain approximately at the same level, $22 million. Please go to the slide number 12. It is crucial to draw your attention to cash flow of company in challenging times for Ukraine. Net cash used in operation activity amount $8 million this year in H1 compared to the almost $50 million the same period last year, mainly due to significant investment in working capital. In the first half of the year, we invest in working capital $144 million dollars more compared to the same period last year. It is mostly related to, first of all, increase in trade receivables for exports in flour, oil and poultry meat due to the longer logistics. Secondly, high amount of chicken meat in stock due to disruptive logistics, the same problem. Third, the change in condition in trade account payable. And increase in VAT receivable balance. General capital CapEx in H1 amount $36 million, mainly related, some maintenance CapEx and some improvement in Cherkasy poultry production facility. Some our projects regarding the new product development. Some words about MHP debt and our liquidity position. As you know, around 90% of MHP total debt are Eurobond. At the end of June, MHP liquidity position was $220 million in cash, mostly in dollars. Because of the war in Ukraine, MHP is facing significant challenges to attract new credit line. At the same time, the minimum liquidity position the company sees appropriate to continue its business as usual is a minimum $120 million-$130 million. With the current situation, despite certain restrictions set by National Bank of Ukraine and general uncertainty in Ukraine because of the war, MHP expects to pay its forthcoming semiannual bond coupon in full and on time. Now I give the floor to Anastasiya to provide you the outlook. Thank you, Viktoria. Definitely, first half of the year was full of challenges, instability and disruptions, which the company managed to overcome with support from our responsible partners in different parts of the world, our strong, brave and ambitious employees and management team. Looking forward, the company understands that although the situation in Ukraine will remain fluid and highly uncertain while the war is ongoing, the group's Ukrainian operations and assets to continue to return gradually towards its normal level of activity. Results in the second half of the year should be influenced primarily by customary market practices. When it comes to poultry business, we expect some further downward correction in global poultry prices in the coming months. Although these may be influenced by varying market factors in different regions, such as avian influenza related supply constraints in the region, but possible excess supply to some Middle East markets. While MHP's vertically integrated supply chain has protected it to some extent from global inflationary pressures, increased logistics costs are expected to continue into 2023. Grain markets remain volatile. Grain prices are likely to remain high at least into 2023 internationally, reflecting ongoing global supply constraints due to climate change effects. As Viktoria highlighted earlier, this year's harvest in Ukraine is going to be good despite all difficulties of the war. However, we do not expect significant development in grain price growth, especially in Ukraine, as long as logistics costs remain high and there is rather fragile stability in grain exports. At the same time, our retail story will continue its further development in the Balkans, supported by favorable market environment. And finally, what I would like to say, and as Viktoria mentioned, MHP expects to pay its forthcoming semiannual bond coupons in full and on time. Taking into account the uncertainties of the war, it should be noted that any potential further actions by the nation of Ukraine could affect MHP's future bonds coupon payments. Thank you very much. We are ready for questions. To ensure that all participants on today's call have equal opportunities, please follow the rule, one participant, three questions. Thank you very much for cooperation in advance. Team, we are ready for questions. Perfect. Thanks, Anastasiya. We'll now move to the question and answer section. If you would like to ask a question, please press star two on your phone and wait to be prompted. If you're dialed in by the web, you can either type your question in the box provided or request to ask a voice question. Our first question comes from Robert Jones from Insight Investment Management. Please go ahead. Hello, can you hear me? Yes, we can hear you, Robert. Please go ahead. Yes. Thank you. Sorry. Yeah. I just wouldn't stand on the coupon payments. Obviously you deferred the spring payment, but you're saying you can make the autumn payment. Does that mean you intend also to make the spring payment within the 270 days of the standstill that you have? Sorry, please repeat your question. Because your connection is not so good. Yeah. I just wanted to understand the coupon that you have deferred. Do you intend to make that payment within the 270 days of standstill that you have? Also, as well as the coupon that is coming due. Sorry. Did you catch question? Nice. Yes. I caught the question. The question is. Can you hear me? Yeah. Yes. Can you hear me? Okay. The question was about the coupon payments, which we deferred 270 days. Right. I understand the question is, what is our plan with regard to this coupon payment? Yes. Thank you. Your question about the next payment. Not about the payment, coupon payment, autumn. September, November. Your question about our winter payment. Based on current situation, we would like to continue to pay coupon. At the same time, we have some restrictions from National Bank. Because now National Bank allows us to pay only interest payments, not just MHP, for all companies from Ukraine. Only interest payments until the 10th of August. I hope the National Bank will continue and reload same normative. We hope that this situation will continue. Unfortunately, we cannot guarantee. You understand that we're living during the war, and for us it's very difficult to guarantee what we will have in terms of this. Hello? Okay. All right. I might follow up with [audio distortion]. Thank you very much. Thank you. Our next question comes from James Barry from Gramercy Funds Management. Please go ahead. Hi, can you hear me? Yes, we can. Yes. Okay. I just want to follow up on that, on the previous question. The two H coupons, your intention is to remain current on those, but the one H coupons, what would be the rationale to delay paying? You know, I think it's promising from the set of numbers that you have $223 million in cash. Why not simply just pay those coupons now? And what would be the rationale to delay? I understand you say that there is NBU regulation that would prevent that, but that's not necessarily the case for other Ukrainian corporates that have paid coupons and have been current on their obligations. Yeah. Can I ask a clarification question? Sorry, can I clarify on the question? So you are asking about the default coupon payment, and you are asking? Sorry, I'm not clear what the question was. Yes, the question. I understand. Now we have. As I told you in presentation, in current situation, we have a lot of problem with new credit lines. You understand. To be honest, it's completely impossible to attract new credit line, not just for MHP, even for MHP. Our minimum liquidity position must be at minimum $130 million. We don't know what will happen and potentially a tragedy happens with our assets and with our facilities. That is why it is minimum we need to keep. In nearest future, during the month we will pay $50 million, that was our coupon. Right now we don't have a lot of money to pay all coupons. You understand. You understand how we pay coupons, the coupon, yeah? Or maybe I did not catch your question. Yeah, I don't think that $200 million is so big liquidity for MHP with current situation when we cannot attract any credit, any loan. The CapEx intensity is, as you say, it's without the two harvests, right? If the autumn harvest has now been complete or is in the process of being complete, then you have reasonably strong visibility on what you can pay, you know, in the next three months. It's just the grace period obviously clearly is the end of December, so why not pay sooner? We should have, you know, reasonable visibility from here. Viktoria. Yes. I'm so sorry I have to translate, Viktoria, because the connection was not that good. [audio distortion] First of all, data of current situation and how now we see that our profile for next 12 months, we understand that we will pay next winter coupon. But what my worry, biggest worries because I maybe because we live during the war, and potentially it can be changed at any time. This is why we don't have that. And as you know, we've had the harvest, but what you need to understand, the biggest part of the harvest we consume internally, and we will consume not in the fourth quarter. Sunflower seeds, corn, we will consume internally. It convert in money during the fourth quarter and nine months next year. Because we, yeah, we sell mostly only grain which we sell usually only rye and corn and part of wheat. This is why, yeah, this is my worry. Yeah, you understand. Do you remain confident that you will pay the winter coupons prior to the end of the grace period or at, on the date of the grace period? Thank you. Viktoria, [audio distortion] Yeah, very important question. Based on current situation, yes. Yeah, I would like to repeat a lot of times, but nobody knows what will be tomorrow, not in one month. Sure. Yeah, that's helpful. Thank you very much. Thank you. Our next question comes from Erica Ive from MetLife Investment. Please go ahead. Good afternoon. Can you hear me well? Yes, we can. Excellent. Yes, we can. Basically, I got a question on cash of $252 million. How much of this is held at the Slovenian subsidiary level? And can this cash be moved to the parent company if needed? Approximately. Total cash in Perutnina is around $100 million. Slightly, yes, very similar. Maybe slightly low. We can send some amount, but not so significant because at the same time, Perutnina has restrictions. This is why this amount only maybe $20 million. Excuse me. Can you repeat? So how much, what are the restrictions in place and how much can you send up to? Up to 20. Up to $20 million. $20 million. Yeah. Yeah. That is how that is established? Is it basically a fifth should be 20% of what is usually held on the Perutnina Ptuj level or million is a hard figure? Yeah. How calculated figure, yeah? Is it hard and fast amount that you apply always or is just a proportion of how much cash is held at the subsidiary level? [audio distortion] Yeah. 20, yeah. To retain the 20% reserves, the 20% and $20 million equivalent is the same, it's around $20 million. Because, yeah, because, Perutnina Ptuj has some restrictions for payment because Perutnina Ptuj has loans. Yeah, syndicated loans, and, has some restrictions to payment to parent company. That is why this is approximate amount which we can take from Perutnina Ptuj around $20 million. Excellent. Thank you. In terms of the $24 million EBRD loan, do you expect this still to be drawn in October? No. EBRD loan we received in August. Yeah. We received some liquidity. Yeah. Sorry. Shall I repeat? Basically, have you already drawn down the liquidity? Have you already used the liquidity or it's still there, the loan? No. We took this loan for liquidity position. Yeah. Have you used it or not yet? Not yet. The liquidity. We took this loan, and no, it's not yet. [audio distortion] Yes. No, we took this loan from EBRD, and now we use it for some of our grain operations. Basically, you've already used it? Yes. Okay. I thought actually that you would have used it in October in conjunction with the harvesting campaign or the sowing campaign, the new sowing campaign. Because sowing. We started in August to buy some fertilizers. Fertilizers and plant protection materials. No, no, not plant protection. Just fertilizers. Basically, you're telling me that. Fertilizers and- Sorry. Please go on. Yeah. We bought. Yeah, yeah, you understand. The price of, I don't remember is the Fertilizers. Fertilizers. Sorry. Fertilizers. You understand. The price for fertilizer increased significantly, and in August, in September at the beginning, even by the end of July, we bought fertilizer. Yeah, fertilizer. We used this loan for purchasing fertilizer. Okay, thank you. Last one is before you mentioned the minimum liquidity position, if I understood correctly, is it estimated at $140 million in total? Was my understanding correct? Sorry, please repeat. How much? Excuse me. What is it? $130. $130. Yes, yes. Yes, yes, you said. Okay. $130. Okay. That includes how much to be held in Perutnina? No, no. [audio distortion] Yes. Maybe my mistake. You're completely right. We need to say the opposite. We need to say that, you know, not jointly, separately. Yeah. For MHP, for Ukrainian MHP, we need to have a minimum of $120 million. Liquidity position. We started today. Yeah. Okay. MHP in parentheses, and then we have Yes. For MHP, Ukrainian company. Yes. Yeah. Okay. Brilliant. Thank you very much. Very helpful. Thanks. Yeah. Thank you. Our next question comes from Antonio Luiz Gomes from Ninety One. Please go ahead. Hi. Thank you for your time. I was wondering if you could probably give us an update on the harvest so far and how, you know, whether or not you've been able to export any of the grains that you harvested to date. In your last update, you mentioned that your spring crops had already been harvested. It'd be good to kind of get some color on, you know, how that's gone and whether you're generating cash from grain as well as poultry at this point. Thank you for the question. Regarding our winter crops, yes, correctly, we gathered winter crops, rapeseed and wheat. Yield is not so great, even it's not regarding rapeseed. We are now exporting rapeseed, but very, very slowly. Yeah. Not because, you know, the problem with export grain. And we suppose that we will export rapeseed until by the end of this year. Regarding wheat. No. Yeah, we will export, yeah, in the fourth quarter. Yeah. The small part. Maybe the price now is not so good, especially for wheat. Maybe part of them. No, but part of them will we use internally. Yeah. We try to export in fourth quarter and maybe some rest of them, some part of them, we will export next year. But anyway, we understand how important money for company. We try to export these winter crops this year. Okay. That cash, are you gonna be able to get it out of the Ukraine, or is it gonna have to be via the Ukraine and hence be restricted? No, no. We will receive cash out of Ukraine, but at the same time, we have obligation to send cash in Ukraine. You understand that we have obligation to send this cash in Ukraine. We cannot keep all cash out. No, we can keep for some period of the time, but anyway, we must return cash in Ukraine because we export from Ukraine. Okay. Is it 100% or less? Almost 100%, because you understand that transfer pricing, yeah, is very powerful, is very important in different country and almost for all products. It's good, very minimal. Okay. My other question was on your cash flow. First on your CapEx, you know, you did about $35 million in this quarter. That gets you to about $55 million year to date. What are you budgeting towards the end of the year? Is it gonna slow down in the second half? No, a little bit maybe slow down, but not significant because you understand that we have the very big part of our CapEx is the maintenance CapEx. We wanted to cannot stop and not invest money in maintenance. Because you understand this issue. We have some project in Perutnina for improving farmer efficiency. We hire after this. Okay. My final question is on your working capital position. You know, your trade receivables extended because of the longer supply lines, as you mentioned. Has your working capital position now stabilized at the level that it reached at the end of the second quarter? Or do you expect, you know, receivables to increase or any other working capital lines to stay quite high relative to history? No. Regarding what is our investment in working capital, yeah. I think that, yeah, we invest more in the second quarter. Yeah. I don't expect to make this small investment in working capital in the second half of the year. You're right. Okay. Perfect. Thank you very much. Thank you. We've had a few text questions just asking for some additional clarity on the liquidity. I know you've discussed this already, but do you want to maybe say something else? For example, one caller is asking- Tim? Sorry, go on. Tim, I think I can take a text question separately, and I will reply via email if it's online. Yes. No problem at all. We've got another voice question from Thank you. From Dragon Capital. Caller, please go ahead. Good afternoon. [audio distortion] Thank you very much for the presentation. I have a follow-up question on the working capital. If I've understood correctly, that company does not expect to invest more in working capital in the second half of this year. Yeah, you're right. Yeah. Thank you very much. Another question would be, if it's possible to ask what is company's current liquidity? Thank you. Our current liquidity position around $250. Perfect. Thank you very much. Thank you. We have a question from Daniel Janiszewski from Barclays. Please go ahead. Hi. Thanks so much for the call. I mean, you mentioned that you have increased production back towards 100% capacity utilization. Do you think you will be able to also increase exports? We'll see more of a recovery in exports through the second half of the year. Just another question on the working capital, just to clarify on the trade receivables, the increase in trade receivables, that's purely due to the change in the nature of your sales and the logistics around it rather than difficulties with payments from customers. Thanks very much. Yes, yeah, you are correct, you are right. Yeah, if you speak about the situation regarding how our investment in working capital and trade receivables, I suppose that we invest this. Second, by the end of Q1, we invest, yeah, in trade receivables enough amount. Yeah. Regarding completely the third situation about exports. Yes. Yeah. Regarding our export, maybe a question about how about increase our meat export. Yeah? The question about export meat. Yeah? Yes. Just whether you think the logistics are now improving? Yeah. Do you still have difficulties? Anyway, it's difficult, but at the same time, we try to increase our exports. Yeah, and if you speak of our export in the third quarter compared with the second quarter, our export in the third quarter is high because especially in April in the fourth quarter, you understand April, it was. Our export is higher than the average export of the second quarter. We try every month to increase our export. Okay. Thank you. Thank you. Next question comes from Kyle Kneisly at Knighthead Capital. Please go ahead. Thank you. I wanted to confirm on the NBU approval. If I heard correctly, you have approval until August 10th, but I'm confused as to how you can pay coupons after August 10th. Do we need NBU approval? Thank you very much for your question. I will try to explain our situation. It is not just some special influence from NBU only for MHP. The NBU, it seems to me two weeks ago, adopted new document which allows to all residents, all companies from Ukraine to pay interest payments abroad, which this company must pay from the 24th of February until 8th-10th of August. You understand this point, yeah? We can pay this amount of interest rate only due 20% every month. Based on current situation or base of documentation and normative rate, yeah, we don't understand, yeah, how not MHP, all companies in Ukraine can pay, yeah, just following interest payments. You understand, yes, our point? That is why I told you we have some restrictions, and some has totally in this issue. Because only companies can pay interest, yeah, which company must pay before the tenth of August. Okay. For the coupon on September 19h, will you be able to pay that with the current- Yes. NBU approval? Yes. Okay. No. The same is true for all three bonds. You will be able to pay the next coupon via the NBU approval. I understand your question. This coupon. Yeah, I understand. We will pay from our cash, which we keep, not in Ukraine. Understood. You under- Yes. Okay. You understand. I will explain just what NBU allow to us, but at the same time this coupon we will pay right now not from Ukraine. Okay. You understand our big obligation we have before our bondholders. Okay. Future coupon payments with cash from Ukraine will require NBU approval. Yes. Yeah. Not just for MHP. This time show us that our National Bank of Ukraine will not give them some permission for different companies. I understand that our National Bank of Ukraine will see situation with current trade balance on total balance and will issue some new documentation which allow to pay. Yeah. Understood. Can you clarify the 20% per month element? You mentioned 20% per month. Yeah. What does that mean? Yeah. Based off current documentation, a company cannot pay in one month full amount, only 20% of all amount. Of the cash? Yeah. Okay. So Ukrainian cash, you can only use 20% of it on a monthly basis to pay interest. Yes. Yes. It's impossible to pay 100% during the five months. Yeah. How much of the $215 million current cash balance is in Ukraine? No, approximately 20%. Yeah, 20%. 20%. Yeah. About $40 million. At the same time, 40% of them in Cyprus, yeah, it's in other restrictions. Yeah. Okay. 20% of 200. $40 million is in Ukraine, $40 million is in Slovenia, and the remainder is in Cyprus. No, $100 million in Slovenia. Yes. Well, rest in Ukraine and rest in both. Yeah. Okay. And my last question on the working capital. You've made a significant investment through June. For the second half of the year, how do you forecast cash flow? And will there be a release? Will working capital be a positive cash figure for the back half of the year? I understand your question, but last year we understand that you have a lot of our total only. At the same time, yes, you're right. I suppose that in the second half of the year we will have great investment in working capital. It's minimum $50 million. At the same time, it would depend on a lot of different issues. One of the biggest issues is the issue regarding logistics. Yeah. Okay. So we have a $180 million investment made in the first half, and that should come in as cash in the second half? Yeah. These are the investments of $150. Yeah. Okay. Thank you. That's all my questions. Thank you. We also have a question from Konstantin Fastovets from Adamant Capital. Please go ahead. Hi. Hi. Thank you for the call. I have two technical questions and then one larger one. Maybe let's just go one by one. The first one, I've noticed that over the past three quarters, there is a difference between export sales volumes. If we sum export sales volumes and domestic sales volumes, we don't get the sales volumes to third parties. There's like a 2%-3% difference. Can you say what this is due to? Sorry. I did not catch. Please repeat what is different. What different? Давайте по-українськи. Дивіться, питання таке: якщо взяти експорт, тобто обсяги, які йдуть на експорт, плюс обсяги, які продаються всередині країни, скласти їх разом, то виходить — у мене тут виходить цифра — ось ці 140 тисяч тонн, вона там трохи менша. Це приблизно така тенденція триває квартали поспіль вже. Цікаво, чому так? I will explain. If I understood you correctly, you think that our total sales less than our production. This your issue, yeah? Нет, нет, нет. Нет, нет, нет. Export sales плюс Export sales плюс domestic sales. Они разом должны давать total sales по логике. Нет, да. Не, не складываются они у них. То есть там разница почти в два раза выходит. Кулинарные продукты... А, мне отвечают, что ли? Мают быть примерно так. Константин, we так. Константин, we will explain you, yeah, correctly all figures, yeah? Окей, окей, that's nice. Yeah, there's some technical issue, yeah. We will explain you. Yeah, I was wondering about that. Another sort of technical question, but I guess less so. Украинский или английский вопрос? Я на английском. If we look at the EBITDA margin in the second quarter for the grain growing operation, but excluding IAS 41, it's basically a cash EBITDA, right? I get a really, really high EBITDA margin in cash terms for this quarter. It's like 90% almost or something. That seems abnormally high to me. Could you comment? Konstantin, I understand the English. Yeah, no problem. We need to calculate. I think that we need to organize a special conference call with you, because all our EBITDA in second quarter mostly consists of IAS 41 standard, and 41 standard non-cash. No, that's clear. Like if you I understand in the second quarter, we sold some grain, it seems to me, for $20 million in revenue. We can explain what we got from this. I understand that in second quarter we sold for export $20 million, our grain for $20 million. It's fine. We can do it either a call or email. Okay. Then just finally, one sort of an outlook question. Could you maybe give a bit more of an outlook of where you see prices for poultry growing domestically and abroad? And also, where do you see costs? Do you see costs more or less stable in the coming few quarters? Or do you see some sort of an increase? Regarding, I will explain. Yes, thank you for the Yes, thank you for the question. Regarding to this cost, I think that this cost will be the same level, because we understand the price of that increase, utility increase. But at the same time, you know, I think that price of some protein will be maybe slightly lower, maybe the same. Okay, we will see. Our expectation about price, about costs will be slightly, maybe maximum higher, but not so significant in dollar term, because the cost of dollars in Ukraine now is higher than in the first half of the year. That is why in dollar term, we expect that costs will be the same level. In hryvnia may be higher by 10%, by those. Regarding price, what we see right now, this price, export market now decrease everywhere. Everywhere. Fillet in EU, small chicken in MENA. Unfortunately, price of meat decrease. It's minimum decrease compared to the second quarter. It's minimum by 10. So it depends of month, depends of region, minimum by 10%. If you think about Ukraine, in hryvnia term, price compared to the second quarter slightly increase, but only in hryvnia term. You understand, if you calculate in dollars, and you will see, because dollars increase by appreciation, yeah. Hryvnia devalued by additional, almost 20%. In dollars, unfortunately, price decrease in Ukraine. That's clear. The number kilo is gonna go down over the next few quarters for sure. No, yes. Yeah. No, depends. Because I now think about the trends what we see in September and in first quarter. In July, yeah, obviously, situation was slightly better, more close to the second quarter. If you think about the first quarter, yes. Okay, cool. Thank you. Thank you. We have a question from Ksenia Michankina from Lumis. Please go ahead. Ksenia, can you hear us? Let's move on to another question. We have a question from Rahul Chopra from Caspian Capital. Please go ahead. Yes, hi. Can you please confirm if the current cash number is $215 million or $250 million? It was hard to hear. Yeah, [audio distortion] Got it. So and of that, we have 40 in Ukraine? Yes. 100 in Slovenia? Yeah. The rest in Cyprus. Abroad. Abroad. Got it. Okay. Thanks, Viktoria. Appreciate it. Thank you. We have a follow-up question from Robert Jones at Insight Investment Management. Please go ahead. No, my question has been answered. Okay, no problem. Thanks, Robert. We also have a question from Konstantin Karchinov from Veld Capital. Please go ahead. Hi. Could you please clarify what was your energy bill for 2021? Sort of when we think about energy costs for 2022, for the first, let's say, eight months, how much they are up year to date, and do you have any sort of hedging in place at the moment? No. If you talk about the price of energy, speaking of natural gas, yeah, prices increased more compared to the more than 50%, 60%. Yeah. Like, I not share exactly the figures, but increase significant, yeah. What was the dollar amount of energy costs that you paid in 2021? Dollar amount would be maybe part of cost of production or price? [audio distortion] I could see fuel costs in the agenda, but what I can't see is the cost of fuel in the cost of production. If you could confirm that would be helpful. Your question about fuel or about gas, electricity? It's both. All energy costs. All energy costs, approximately 18% of total our costs. Approximately speaking about figures, maybe approximately, you know, $0.20. It is very approximately. Sorry, could you $0.20 per kilo. What you would like to see the total our cost? Yeah. $0.20 per kilo. 20% of all your costs energy No, approximately, yeah. Okay. Those 20% are up 60% year to date, right? No. When I talk about 20%, I talk about our current situation, which approximately now energy cost approximately 20% per kilo. This year, yeah, last year, ago, it was around 14, 15 approximately. Because if you think about electricity, price of electricity year-over-year increased also significant, especially if you compare the price of electricity H1 to H2 the same period last year. We can increase price on gas and fuel. Got it. For me to get the dollar amount is, I have to basically take EBITDA, deduct revenue, so I get the cost load. Then you're saying that at the moment, 20% of that cost load is energy related, right? Is that correct? Approximately, yeah. Got it. I have to say exactly, yeah. Approximately, yeah. Yeah. Got it. You're not doing any hedging at the moment? No, I cannot even imagine hedging in Ukraine. No. Got it. And then in terms of access to internally generated energy, do you have any or you're reliant on third parties only? No, we have internal generation of gas. Yeah, internally. Approximately maybe I cannot say maybe 15%, 17% of total our energy we generate internally. We produce by ourselves. Yeah. Got it. 85% comes from the third parties, right? Yeah. Got it. And then how do you think about sort of access to electricity and for the energy at the moment? Do you see any disruptions in that or it's business as usual? Until today is not a lot of disruption. Potentially, maybe we expect a lot. We are not good enough. Yeah. Do you have any sort of contingency plans in place in case of disruptions? Because your business model is really dependent on the continuous access to electricity or gas. No, yeah. How should we think about it? Do we have to think about it at all? Something that you care about? Thank you for your question. We're not just thinking, and we provide some projects and we try. One of our most important tasks to decrease consumption of energy, especially and electricity. Our targets today includes. The biggest part of our targets, if you think about different projects, is the projects which related to improve our energy efficiency. It is not just this year. It's not just current this year. Got it. Okay. Thank you. Thank you. We have, I think, one final question from Dmitry Ivanov from Jefferies. Please go ahead. Hello. Can you hear me? Yes, we can hear you. Yes. Yes. Yeah. Thank you for the presentation. I have like three questions. Apologies if some of them are kind of elaboration or clarification. The first one is on debt maturity profile. I think in February 2023, you have to repay $140 million in bank loans, and it looks like it won't happen given this current FX restrictions. Maybe if you give us any color on the kind of situation with bank lenders. Have you started, like, any negotiations with regards to the prolongation of this credit? Because again, it looks like you won't repay this $140 million in February 2023. That's my first question. I'll ask question by question. Thank you. Thank you for your question. You're completely right. You know our debt profile very well. Yes, exactly. In February, you're completely right, we must repay $140 million. Now, we provide different negotiations with our bank. Until today, we did not close this amount. Understand. You will come to, you will get this, you will get that closer to the maturity, I guess, right? Yeah. Okay. You're completely right. Yeah. Understood. The second question actually on this Grain Deal, and apologies, if like someone already asked this question. Your winter campaign is already done, and you have certain inventories, crops, and as we discussed with you previously, there's certain limitations on the capacity of vessels and et cetera. Given this inventory is in place and given the current pace of exports from Ukraine of crops, how long will it take the company to export the current winter crops inventories? Are we talking about several months, or kind of? I know this kind of very huge equation because this Grain Deal is due to be renewed soon. But in what period of time you expect to export the current inventories from the winter crops outside of Ukraine given what you observe now with the Grain Deal? Okay. Thank you. Yeah. Thank you for your question about the winter crops. I would like to emphasize that winter crops, it is, it seems to me around 20%, but maybe less of total area of total our grain, because only rapeseed, only rye and wheat. Based on current situation and logistics problems, I think that, right, we will export. We start, what is good, we have started exports, right? I think that we will export maybe until mid-end of this year. The same situation with wheat. Maybe in some parts of wheat, we postponed, and maybe 20% or 25% of wheat or maybe even 30%-35% we will export next year. In terms of the volumes, it's like I'm talking about, like, is it possible to quantify it by 500,000 tons in crops, in inventories? Yeah, yeah. I will explain. Okay. Mm-hmm. Now, we just paid approximately 80,000 tons. Anastasiya, help me please. Regarding wheat is the 150. Yes? Yes. As with wheat. But w hat is very important, yeah. Part of wheat we consume it, we use internal for barley. Approximately around 40% we consume internal. Just We will complete the nine months more during the fourth quarter and nine months next year. Sorry. Just to make it clear, you have like approximately 240,000 tons of inventories like crops, and approximately 40% expected to be consumed internally and 60%. No. Huh? No, no. We speak now, we speak about just winter crop. Winter crop is rye and wheat. Okay. I talk about only wheat Wheat project. Wheat, we produce internally. Understood. Last question on this National Bank of Ukraine policy that explicitly asks you just to repatriate cash back into Ukraine or from exports, right? You mentioned like approximately $40 million in cash in Ukraine, 100 million hryvnia, 30%, and the rest offshore abroad. How much of this cash which is abroad offshore you have to repatriate back into Ukraine according to this NBU regulation? Like, how much of it like has to be sent back into the country of this like cash that you mentioned? Approximately 90%. 90%, 92%. Yeah. 90%. Yeah. More than 90%. 90% of cash that you mentioned, which is either as [audio distortion] or, No, no. [audio distortion] is a separate story. It's not the same. Okay. It's a separate story. Yeah. Okay. We have some restrictions. Regarding, we speak about $100 million, 90% we must repatriate it in Ukraine. It's like, Because right now, you understand. Right now it's in three-five. There's no kind of definition of. There are no deadlines and et cetera, so it's like it's just NBU regulation just asks you to repatriate it back, so without any kind of precise deadlines. Now, we have the time, which, yeah. Yeah. You're questioning about how many days? Yeah. What time we need to repatriate, yeah? Yeah. How many days you have to repatriate it back, like, it's like a month? Since the 180 from the export date. Understood. Yeah. From export data from Ukraine. Q1 180 days. Thank you very much. Appreciate it. Thank you. Thank you. There are no more voice questions. Just a reminder, all text questions will be forwarded to the MHP team following the call. I'll now hand back to Anastasiya and Viktoria for closing remarks. Victoria, I'm looking to have one more close. Is there something you'd like everybody to think of please? Yeah. Thank you very much for everybody. Yeah. Goodbye, everybody. If you have any questions, please send to Anastasiya and to me. We are here for you. Thank you. Bye. That concludes the call for today. Thank you very much, and have a nice day.