Sanwil Holding S.A. — Earnings Release 2016

Apr 20, 2016

KERNEL HOLDING S.A.

OPERATIONS UPDATE FOR THREE MONTHS ENDED 31 MARCH 2016

Volume and tonnage	Q3 FY2016	Q3 FY2015	y-o-y	9M FY2016	9M FY2015	y-o-y
Grain sales, tons	1,414,879	1,331,704	6%	3,665,187	3,955,509	(7%)
Sunflower oil sales in bulk, tons	319,940	249,226	28%	775,138	729,917	6%
Bottled sunflower oil sales, '000 liters	28,553	23,790	20%	77,272	80,780	(4%)
Oilseed crush, tons	704,144	704,102	0%	2,037,423	1,910,876	7%
Export terminals throughput, tons(1)	1,471,521	1,222,043	20%	4,334,917	3,872,138	12%

(1) Including 271,202 tons transshipped through Taman port in Q3 FY2016 vs. 137,592 tons in Q3 FY2015 (1,402,345 tons in 9M FY2015 vs. 1,084,245 tons in 9M FY2015), which represents 50% of the total throughput volume of the Taman facility. Kernel Holding S.A. owns a 50% stake in the Taman grain transshipment facility. Note: Financial year ends 30 June.

Key highlights:

• Grain sales reached a record 1,414,879 tons in Q3 FY2016, an increase of 6% compared to a year ago, as capacity improvements at our grain transshipment facility in Ukraine increased our grain export speed while both our own and third-party farming sales accelerated following the reinstatement of VAT refunds on grain exports since 1 January 2016.
• Export terminals utilization was up 20% y-o-y to 1,471,521 tons in Q3 FY2016 as a result of a debottlenecking project completed at our Ukrainian grain transshipment facility that reached a historical high monthly utilization of 435,000 tons in March 2016.
• Sunflower oil sales in bulk were up 28% y-o-y to a notable 319,940 tons in Q3 FY2016, with the growth driven by strong production in the preceding quarter. Oilseed crush was unchanged y-o-y in Q3 FY2016.
• Bottled oil sales increased 20% y-o-y to 28.6 million liters in Q3 FY2016 as the roll-out of export sales to new markets compensated for sluggish domestic demand.

Other highlights:

• Starting 1 January 2016, VAT refunds on grain exports were reinstated in Ukraine, a change that is beneficial for the company's farming and grain segments.
• On 25 February 2016, Kernel entered into binding documentation to acquire the assets, through an assignment agreement with a Ukrainian bank, of an oilseed crushing plant for USD 95.8 million, payable in arrears over five years. Commissioned in 2012, the world-class multi-seed facility has an installed crushing capacity of 560,000 tons of sunflower seed per year. The production plant, where Kernel currently operates through a tolling agreement, is located in Kirovohrad region of Ukraine and fits well into Kernel's existing origination and marketing platform.
• On 15 April 2016, Kernel reported it had divested two small oilseed crushing plants located in southern Russia for RUB 800 million paid in cash by the buyer. The plants have a total crushing capacity of 200,000 tons of sunflower seed per year.

The condensed consolidated interim financial statements for the three months ended 31 March 2016 will be published before market opening on 30 May 2016.

Appendix

Q3 FY2016 vs. Q2 FY2016

Volume and tonnage	Q3 FY2016	Q2 FY2016	q-o-q
Grain sales, tons	1,414,879	1,322,862	7%
Sunflower oil sales in bulk, tons	319,940	297,048	8%
Bottled oil sales, '000 liters	28,553	31,036	(8%)
Oilseed crush, tons	704,144	915,377	(23%)
Export terminals throughput, tons(1)	1,471,521	1,695,699	(13%)

Note: Financial year ends 30 June.

(1) Including 271,202 tons transshipped through Taman port in Q2 FY2016 and 558,268 tons in Q2 FY2016, which represents 50% of the total throughput volume of the Taman facility (Kernel Holding S.A. owns 50% of the Taman grain transshipment facility).

For further information, please contact:

Investor relations:

Yegor Samusenko, IR Manager

+38 044 461 88 01, ext. 70-88 y.samusenko@kernel.ua

Yuriy Kovalchuk, Corporate Investment Director

+38 044 461 88 01 ir@kernel.ua

The information in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither the Company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this document, or its contents, or otherwise arising in connection with this document. This document does not constitute or form part of any offer or invitation to sell or purchase, or any solicitation of any offer to sell or purchase any shares or securities in Kernel Holding S.A. It is not intended to form the basis upon which any investment decision or any decision to purchase any interest in Kernel Holding S.A. is made. Information in this document relating to the price at which investments have been bought or sold in the past or the yield on investments cannot be relied upon as a guide to future performance.

Certain statements in this document are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties or assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the date of this announcement. Except as required by law, the Company is under no obligation to update or keep current the forward-looking statements contained in this document or to correct any inaccuracies which may become apparent in such forward-looking statements.