Ladies and gentlemen, thank you for standing by, and I'd like to welcome you to MHP's Q2 and Six Months 2025 Results Conference Call on the 12th of September 2025. At this time, all participant lines are in listen-only mode. The format of the call today is a presentation, which will be followed by a question-and-answer session. Without further ado, I would like to pass the line to Anastasiya Sobotyuk, Director of Investor Relations. Please go ahead. Thank you very much. Dear stakeholders, good day to you. Thank you for joining us for MHP's conference call dedicated to our second quarter and semi-annual results. My name is Anastasiya. I'm IR Director. I'm joined today by Viktoria Kapelyushnaya, Chief Financial Officer of MHP. Together, we will present and discuss the company's financial and operational performance for the reporting period. Please note that today's discussion is based on the press release, investor presentation, and financial statements released earlier today. In addition, during our discussion, we will share our outlook and strategic plans, which reflect current assumptions as well as domestic and international market trends. We kindly ask you to take this context into account during the call. We move to slide number three of the presentation. A few words, first of all, about the macro environment in the first half of 2025. Despite a challenging environment, including ongoing missile attacks on critical infrastructure, Ukraine's economy demonstrated notable resilience in the first half of the year. According to official data, Ukraine's real GDP grew by an estimated 1.3%- 1.5% year-on-year, driven by recovery in industry and construction, but constrained by war-related disruptions, energy shortages, and labor challenges. Looking ahead, the National Bank of Ukraine projects further recovery, with GDP expected to grow by approximately 2% this year. Inflation trends have also shown some moderation. The Central Bank currently forecasts anticipated inflation for the full year to reach approximately 10%. Since October 3, 2023, the National Bank has adopted a managed exchange rate regime, introducing more flexibility into the foreign exchange market, which remains in place today. The exchange rate remains highly sensitive to global geopolitical developments, including shifts in international trade and tariff policies. In 2025, Ukraine is expected to harvest over 23 million hectares of agricultural land, with roughly half allocated to grain crops and nearly 40% to oil seeds. Recent public forecasts suggest that after the 2024 harvest of about 71 milliont- 75 million tons of grains and oil seeds, Ukraine's 2025 harvest is likely to decline modestly under many scenarios, mainly projecting 73 million- 74 million tons, though more optimistic outlooks see the potential to reach 83 million tons if conditions improve. In summary, all these macro indicators collectively highlight both the resilience and the potential of Ukraine's economy as it continues to navigate a complex and evolving environment. Let's move on to slide number four of the presentation. Returning now to our financial performance for the first half of 2025, the main points are the following: revenue growth, around $1.6 billion, with a 10% increase year-on-year. We have stronger performance in poultry, agriculture, and European segments drove revenue growth in both Q2 and Six Months 2025, offsetting the decline in vegetable oil sales. Vegetable oil weakness continued. This segment continued to underperform, dragging down profitability, but its impact was offset by growth in other core segments, as mentioned. Gross profit stability, approximately $368 million in the first half of 2025. While vegetable oil margins declined, this was largely balanced by stable or improved results in poultry and agriculture, resulting in broadly stable Q2 or slightly lower Six Months gross profit. EBITDA and operating profit declined. EBITDA, net of IFRS 16, decreased by 11% to approximately $236 million, and operating profit decreased by 89% to $136 million, mainly due to higher payroll-related SG&A expenses, increased depreciation, and additional war-related costs. Net profit growth, despite operational decline, net profit increased in both periods by 67% to $75 million in the first half of 2025, thanks to foreign exchange gain, reserving a significant FX loss in the prior year caused by grid depreciation. Let's move to slide number five of the presentation. Here we have financial results by segment, and in the first half of 2025, the poultry-related operations segment remained the largest contributor to the company's performance, accounting for 55% of total revenue and 70% of total EBITDA. This was primarily driven by an increase in poultry prices. The main trigger for adjusted EBITDA in 6 months 2025 were actually triggers. We have a few. Were growth in poultry prices, however, partially offset by higher production costs and lower sales volumes for exports. Significantly higher production costs of sunflower oil, driven by higher prices of sunflower and increased SG&A costs. Let us now take a closer look at the performance of each business segment, and I will pass my word to Viktoria. Thank you, Anastasiya. Good afternoon, everyone. Let's have a look at the poultry and related operations segment performance, slide number six. Despite ongoing challenges of the war in Ukraine, MHP delivered strong performance in Q2 and H1 2024, exceeding the results of the same period last year. This was driven by stronger poultry and processed meat prices, together with effective cost management, demonstrating the company's resilience and efficiency in operations. Poultry costs continue to increase in H1, primarily due to the higher grain prices and regular salary review, and it is market-adjusted in spring. Looking ahead, we expect additional pressure from energy, payroll expenses, and broader inflation impacts on production inputs in Ukraine. Poultry prices continue to rise in Q2 and H1, both on the export and domestic markets, up 16% year-on-year, compensating growth of poultry production costs. Volatility in commodity prices remains a key challenge for MHP. To mitigate this impact, MHP strategically continues growing its share of non-commodity products, both in Ukraine and export markets. In H1, we further prioritize the sale of processed meat products, with a focus on delivering the strongest returns. A few words about our vegetable oil segment, slide number seven. Performance in this segment remains weak, with revenue decreases in Q2 by 13% year-on-year and 12% quarter on quarter, driven by a substantial decrease in sunflower oil sales year-on-year. EBITDA for both H1 and Q2 declined year-on-year; however, results stabilized quarter on quarter, supported by slightly better margins. To mitigate the negative effects on group results, we have already adjusted our order received, shifting substantially from sunflower to soy cake. This resulted in higher soybean oil output, while sunflower oil production continued decreasing correspondingly. This pressure on profitability mainly reflected higher sunflower and soybean prices, which are not fully offset by oil prices' change. This was driven by a lower harvest year in 2024 and an increased number of crushing capacity in Ukraine. As a result, we expect the segment to deliver lower profitability this year. Let's move to slide number eight, Agricultural Operations. Slightly higher segment revenue in H1 was a result from increased prices, partially offset by the lower volume of grains sold to external customers from the last year's harvest. EBITDA of Agricultural Operations segment remained almost unchanged. The result was mainly the offset of higher prices, with mixed yields and slightly increased production costs. Spring crops harvesting has already started and is progressing well. As of today, we anticipate the yield of spring crops to be comparable to last year. I would like to mention that only harvest of wheat was higher, over 7 tons per hectare, while the rapeseed yield was slightly lower than the prior year, with 3.3 tons per hectare. The 2025 harvest is expected to be between 1.2 and 2.5 million tons of crops. Let's proceed to slide number nine. Several words about the European operating segment. EBITDA of the European operating segment was broadly stable year-on-year in both in H1 and Q2, however, improved compared to the previous quarter. This growth was supported by high sales of poultry meat in Slovenia, in Croatia as well, and other export markets, along with modest price increases in Q2. Slide number ten. A few words about the cash flow and liquidity position. Cash from operations before changes in working capital amounted to $180 million in H1 and $80 million in Q2, broadly in line with last year. Investment in working capital amounted to $19 million during the first half of the year, pretty stable year-on-year, primarily due to the increase in trade account receivables, driven by high meat prices and changing inventories. Agricultural produce and biological assets were largely seasonal and tended to offset each other. CAPEX, $134 million in H1, remained stable year-on-year and was directed to several key areas, including extensive maintenance and modernization of existing facilities, plus cost optimization projects, also expansion and improving of the Pirutinapo production facility, and construction on new Bergy production facilities. As you already know, on the 31st of July, subsequent to the reporting date, the group finalized the acquisition of 92% of the first capital of EVESA Group, one of the leading Spanish producers of poultry meat and animal feed. The total consideration for the transaction amounted to EUR 171 million. Approximately 70% of this amount was financed through debt facilities from private European banks, while the remainder was funded from the group's own resources. EVESA Group is one of the leaders in the food industry in Spain and one of the leading poultry producers in Spain. The group operates 4 feed mills, 1 hatchery, 4 poultry slaughter house, and two pork farms. Besides the 2024 results, the group produced over 150,000 tons of poultry and over 70,000 tons of pork, generating over EUR 600 million of revenue. Regarding debt position, at the end of the period, the company's total debt was nearly $1.7 billion and net debt about $1.2 billion. The liquidity position at the end was $330 million in cash, $154 million of which was held by the group's subsidiaries outside Ukraine. As 30 June 2025, the group's leverage ratio was 2.3x. Regarding $550 million notes due in April 2026, this is a top priority for us, and we fully understand its importance to investors. As of 30th June, there are notes that have been reclassified from long-term to short-term debt. There have been no material changes in Ukrainian capital control or liquidity regulation, which requires that foreign currency proceeds from exports originated in Ukraine be repatriated with 180 days. This, in practice, limits our ability to use offshore cash for debt repayment. While MHP can service its existing loan portfolio and bonds from Ukraine, principal repayments from offshore remain restricted. We continue to operate under uncertainty and challenges due to the ongoing war. With the notes maturing in approximately 7 months, we are actively evaluating all available options and remain confident in our ability to implement an effective repayment strategy. We certainly appreciate the support from our investors since February 2022 and look forward to continuing our constructive cooperation. Now, I give the floor to Anastasiya. Thank you, Viktoria. Let me conclude the presentation before we start our Q&A session. Despite a highly uncertain and volatile operating environment marked by ongoing war in Ukraine, fluctuating export market conditions for poultry, instability in grain and vegetable oil prices, MHP continues to demonstrate operational resilience. The company not only sustains core business activities under persistent disruptions but also pursues strategic growth, as reflected in the acquisition of Uverse Group. As the company approaches the bond 2026 refinancing milestone, it remains focused on prudent financial management, given that capital controls by the IBU remain unchanged. In a landscape lacking clarity on ceasefire or peace negotiations, MHP adapts, innovates, and positions itself to navigate near-term headwinds while building for long-term strength. Let us take your questions now, dear stakeholders. Thank you. Operator. Thank you very much. We'll now be moving to the Q&A part of the call. If you'd like to ask a question, please press star two on your phone. That is star two. If you're connected from the web, you can also ask a voice question. We'll wait a few moments for the questions to come in. Our first question is from Stella Cridge from Barclays. Your line is now open. Please go ahead. Hi there. Afternoon. Many thanks for all the updates there. If it'd be possible to ask in two areas, please. The first is on the Spanish acquisition. Thanks for the detail on the financing of that. Could you just give us an idea of what the maturity profile would be of the debt associated with that and what your pro forma leverage would roughly be post-acquisition? That would be great. The second, you know, thanks for obviously running through thoughts on the 2026 bonds. I was just wondering what your, you know, options might be available. I mean, would you consider, you know, a full extension of the bond into new maturity? Could it be kind of part cash, part extension, or maybe some new funding? Just to kind of get a sense of what the options might be in practice, that would be great, please. Thank you for your question. Regarding our debt portfolio after acquisition, as I told during the presentation, our acquisition cost of our acquisition was EUR 271 million, approximately more than $300 million. We adjust for this acquisition, acquisition finance is a debt from a private European bank, around EUR 200 million, long-term debt. After this acquisition, our current position, our leverage is approximately 2.7 current our leverage position. Regarding, together with, yeah, if you calculate together with EBITDA of U.S. consolidated and consolidate debt of U.S. Regarding the second question about options for 2026, you know that during all our history, yeah, we have never done any restructuring, even in 2014. At the time, MHP was only 1 institution from Ukraine who repaired Eurobond, and for us, the market approach is to issue new Eurobond and from this money repair previous Eurobond. Nobody knows if the market allowed us to do it. Unfortunately, just 2 months ago, 3 months ago, we thought that it would be maybe realistic. A chance of that, we estimated 10%, 20%. Now we believe in some miracles, maybe something changes on the market. First of all, this war in Ukraine, and maybe the market will allow us to issue Euro report. Maybe we will be very happy with this. If not, we are considering different possibilities, and we understand that maybe MHP is one of the most reliable partners for all creditors in Ukraine, outside of Ukraine. I think that I suppose that we can achieve some compromise anyways. Thank you. Thank you very much. Our next question is from Erica Ive from MetLife Investments. Your line is now open. Please go ahead. Hello. Thank you for taking my questions. I got a couple only. About EVESA acquisition, could you indicate how much EBITDA do you expect from the company? In terms of a notice, you put aside $43 million of funds in short-term deposits to secure bank guarantees. Should I assume that these funds have been released in July? Could you provide, please, for some color? I think you have a question about this. As I told, the revenue of IBSA Group is approximately EUR 600 million, EBITDA approximately EUR 50 million. Regarding guarantee, yes, you're completely right. It was a release. Thank you. Just a reminder, if you'd like to ask a question, it's star two on your phone, and you can also ask a voice question from the web. Our next question is from Dmitry Ivanov from JFS International. Your line is now open. Please go ahead. Hello, Viktoria. Anastasiya, can you hear me? We can hear you. Thank you very much for the presentation. Just a few questions from my side, if I may. Apologies again for this premature acquisition. Just to confirm, apart from this EUR 200 million acquisition-related debt that you attracted to finance the deal, does the asset have another separate debt, like in your working capital term loan specialty? We are talking about only EUR 200 million acquisition debt that you will assume as a part of this acquisition. Just to confirm this number, if I may. Sorry. Maybe we did not catch, yeah, regarding acquisition. Does the asset have a debt on the balance sheet? In debt on the balance sheet in the U.S., around EUR 60 million. EUR 60 million debt on the balance sheet for basically. Euros. Euros. Basically, it will be like EUR 200 million. Net debt acquisition, yeah, and EUR 60 million, yeah. Okay. Got it. Are there any kind of contingent deferred payments for this asset, or are you already like EUR 270 million equity? As I told, we bought 92% of this company. 92%. Okay. Got it. Thank you. Absolutely. Can you also share with us the latest cash position after the acquisition? You disclosed EUR 330 million as of June. What is the latest cash position after the acquisition? Yeah, now our current position of cash is around EUR 300 million. EUR 300 million after. Current position after acquisition, because now in September, we closed our deal by the end of July. Our current position is around EUR 300 million. Got it. How much of it is? What I would like, yeah, Dmitry, what I would like to emphasize is very important. With the current situation, the minimum of cash which we must have in our account due to the current situation is minimum $200 million is our cardinal policy, is very important. Okay, got it. $ 200 minimum, $300 the current after the acquisition, basically. Finally, to confirm, 2.7 net leverage is pro forma expected by the end of the year with the asset fully consolidated, right? Just what you mentioned, 2.7 pro forma net leverage. Approximately 1.75%, yeah, approximately. 2.7. Okay, got it. Okay, thank you very much. Thank you. Our next question is from Nandini Bommakanthi from JPMorgan. Your line is now open. Please go ahead. Hi. Thanks for taking my questions. I have three right now. The first one is the debt which is raised at [IBSA] for the funding. Could you please provide, like, the cost of this debt? Are there any amortization payments, or do you expect it to be a bulletary payment? The question about the condition of our acquisition finance, financial debt? Yes, that's right. Yeah, it is a loan for seven years with a two-year grace period. Two-year grace period. After that, it's enduring the seven years. After the two-year grace period, what's the annual amortization? Yes, with quarter, yeah, quarter amortization. Yeah, after 2 years. After 2 years' grace period, quarter amortization. Okay. 25% per year. Sorry, if I could go to my question on the next question, what is the cost of this debt? No, sorry. It is commercial. Yeah, believe me, it's very attractive. Yeah. Understood. Also, could you please provide the full-year EBITDA guidance now that we are halfway through the operations? Based off current situation, because you understand, we hope that every ticket would be booked. Based on current situation, our expectation is EBITDA for the full year is $550 million together with U.S. Together with U.S. for 6 months, I think. Got it. What is the full-year CapEx guidance? CapEx guidance without U.S., without our acquisition, approximately $280 million. $280, including U.S.. Got it. My last question. Excluding U.S. Excluding U.S. Okay. My last question is about the European operating segment. Can you please remind what's the net debt at this entity, and how much more additional debt capacity that entity has currently? You understand that we attract our acquisition finance for our European segment of our European company, and current our position of net debt of Perutnina around $380 million. $380 is the net debt. Got it. Do the covenants, loan covenants, allow you to take additional debt over there? Yeah, because it is current covenant with U.S. because Perutina bought U.S., and our current covenant is 2.9. No, not covenant. Our current net debt ratio is 2.9. It's very close to the maximum. Okay, thank you. Thank you. Just a reminder, if you have a voice question, it's star two on the phone. You can also ask a voice question if you're connected from the web. We'll wait a few more moments. Okay, it looks like we have no further voice questions. Anastasiya, do you have any final comments? Thank you very much. Thank you very much, Louis. Thank you for assisting us. Dear stakeholders, I can see that there are a few more questions in the chat. If you don't mind, can you hear me, Louis? Yes, I can hear you. There was some background noise, but now I can hear you. Thank you very much. If you don't mind, if you have any questions, and if you can share those questions with me by email, please forward those questions directly. Thank you very much. With many of you, I think we will see you next week at the JPMorgan conference. Thank you. Bye-bye. That concludes the call for today. Thank you and have a nice day.