KSG Agro S.A.

Earnings Release • Aug 3, 2022

The Board of KSG Agro S.A. headquartered in Luxembourg("the Company") hereby informs that on August 1, 2022 the ratingcommittee of RA Expert-Rating made a decision to confirm its creditrating at the level ua_#1040;+ according to the national scale (the ratingaccording to the Agency's international scale is at the level _#1042;_#1042;_#1042;).Theborrower or the particular debt instrument with such rating ischaracterized by a high creditworthiness compared to other Ukrainianborrowers or debt instruments._#160;TheAgency updated the credit rating after the analysis of data of theconsolidated statements of KSG Agro S.A for the first quarter of 2022.Among other factors confirming the high credit rating was the growth ofthe Company's equity capital for the period from 31.03.2021 to31.03.2022 by 3.74 times - up to USD 23.42 million, reduction ofliabilities by 21.43% - to USD 45.31 million and, as a result, anincrease in the ratio between equity and liabilities of KSG Agro by40.84 percentage points to 51.70%. In addition, it is important that thepredominant share in the structure of long-term liabilities of KSG Agroas at 31.03.2022 was occupied by long-term loans, the volume of which inthe analyzed period increased by 5.78% - to USD 25.97 million.The volumeof sales of the Company's products in the analyzed period still showedgrowth. In particular, sales revenue for the first quarter of 2022compared to the first quarter of 2021 increased by 0.54% and amounted to$3.54 million. At the same time, KSG Agro's net profit at the end of thefirst quarter of 2022 increased by 2.45 times compared to the sameperiod in 2021 to USD 1.84 million. A significant increase in thefinancial results of KSG Agro had a positive effect on the profitabilityof sales and profitability of the Company's assets, which in theanalyzed period showed significant growth. Analysis of KSG Agroconsolidated financial statements showed that EBITDA for the firstquarter of 2022 compared to the first quarter of 2021 increased by 9.96%to USD 1.52 million, and the ratio between the amount of EBITDA for thefirst quarter of 2022 and the volume of loans as at 31.03.2022 increasedcompared to last year's figure by 0.29 percentage points to 5.36%, whichis positively assessed by RA Expert-Rating.Theagency notes that, since the beginning of the Russian invasion, therehave been no hostilities in the immediate vicinity of the holding'sassets, KSG Agro S.A. has no customers from Russia, and the pricedynamics of goods produced by the agricultural holding is favorable.Besides, despite Russia's military aggression against Ukraine, KSG Agroreceived from TASCombank in the first quarter USD 1.33 million of creditfunds for the sowing campaign._#160;Thus,the agency has noted a significant increase in the level of equitycoverage of liabilities, an increase in financial results, highperformance indicators of the Company, as well as an increase in theratio between EBITDA and loans.