Mhp Reg S Regulatory News (MHPC)

18 November 2021, Limassol, Cyprus

MHP SE

Financial Results for the Third Quarter and Nine Months Ended 30 September 2021

MHP SE (LSE:MHPC), the parent company of a leading international agro-industrial group with headquarters in Ukraine, today announces its results for the third quarter and nine months ended 30 September 2021. Hereinafter, MHP SE and its subsidiaries are referred to as "MHP", "The Company" or "The Group".

Starting from the publication of its financial results for Q1 2021, MHP shows relevant comparisons of results not only year-on-year, but also to the preceding period. Accordingly, Q3 2021 results in Poultry, Meat Processing and European Operating segments are compared not only with Q3 2020, but also with Q2 2021. For Grain Growing Operations, where results are driven by seasonality effects, this comparison is not relevant.

OPERATIONAL HIGHLIGHTS

Q3 2021

· Poultry production volume in Ukraine increased by 7% year-on-year to 194,199 tonnes (Q3 2020: 181,661 tonnes). Poultry production volumes of the European Operating Segment (Perutnina Ptuj or PP) increased by 8% to 29,812 tonnes (Q3 2020: 27,615 tonnes).

· The average chicken meat price increased by 32% year-on-year to US$ 1.79 per kg (Q3 2020: US$ 1.36 per kg) (excluding VAT). The average price of poultry meat produced by PP during Q3 2021 was EUR 2.65 per kg (Q3 2020: EUR 2.48 per kg).

· Chicken meat exports totaled 108,963 tonnes, almost unchanged compared from 108,472 tonnes in Q3 2020.

9M 2021

· Poultry production volume in Ukraine slightly increased by 2% to 551,729 tonnes (9M 2020: 541,592 tonnes). Poultry production volumes of PP increased by 8% to 83,930 tonnes (9M 2020: 77,574 tonnes).

· The average chicken meat price increased by 22% year-on-year to US$ 1.64 per kg (9M 2020: US$ 1.34 per kg) (excluding VAT). The average price of poultry meat produced by PP was EUR 2.56 per kg (9M 2020: EUR 2.52 per kg).

· Chicken meat exports increased by 8% to 300,278 tonnes compared to 279,025 tonnes in 9M 2020.

FINANCIAL HIGHLIGHTS

Q3 2021

· Revenue of US$ 658 million, up by 20% year-on-year (Q3 2020: US$ 547 million).

· Export revenue increased to US$ 341 million, 11% higher year-on-year, representing 52% of total revenue (Q3 2020: US$ 309 million, 56% of total revenue).

· Operating profit increased to US$ 161 million up 188% year-on-year (Q3 2020: US$ 56 million); operating margin more than doubled to 24% (Q3 2020: 10%).

· Adjusted EBITDA (net of IFRS 16) increased by 115% to US$ 186 million; adjusted EBITDA margin (net of IFRS 16) increased from 16% to 28%.

· Net profit increased to US$ 145 million, compared to a loss US$ 47 million in Q3 2020, including non-cash foreign exchange gains of US$ 24 million (Q3 2020: US$ 61 million loss). Net profit before foreign exchange differences amounted to US$ 120 million compared to US$ 14 million in Q3 2020.

9M 2021

· Revenue increased to US$ 1,647 million, up by 16% year-on-year (9M 2020: US$ 1,414 million).

· Export revenue increased to US$ 843 million, 11% higher year-on-year, representing 51% of total revenue (9M 2020: US$ 761 million, 54% of total revenue).

· Operating profit increased to US$ 416 million, up by 114% year-on-year and operating margin increased from 14% to 25%.

· Adjusted EBITDA (net of IFRS 16) increased by 72% to US$ 519 million; adjusted EBITDA margin (net of IFRS 16) increased from 21% to 32%.

· Net profit increased to US$ 377 million, compared to a loss US$ 109 million in 9M 2020, primarily reflecting a US$ 75 million non-cash foreign exchange gain in 9M 2021 compared with a US$ 191 million foreign exchange loss in 9M 2020. Net profit before foreign exchange differences amounted to US$ 302 million compared to US$ 81 million in 9M 2020.

FINANCIAL OVERVIEW

1) pps - percentage points

Average official FX rate for Q3 2021 UAH/US$ 26.91 and for Q3 2020 UAH/US$ 27.60

Average official FX rate for 9M 2021 UAH/US$ 27.49 and for 9M 2020 UAH/US$ 26.53

DIVIDENDS

On 28 April 2021, shareholders of MHP at the AGM approved payment of an annual dividend of US$ 0.2803 per share, equivalent to US$ 30 million, to shareholders on the register as of 07 May 2021. The Board of Directors approved that no dividend will be paid on the Company's shares held in treasury. As of 30 September 2021, dividends were fully paid to shareholders.

At its meeting on 17 November, in recognition of the Company's exceptional performance in 2021, the Board of Directors approved the payment of a one-off special dividend of US$ 0.2803 per share, equivalent to US$ 30 million. Details of payment, which is expected to be made in December 2021, will be announced later this month. The Board will consider payment of its customary annual dividend in March 2022.  

In order to follow the presentation together with the management, please follow the link:

https://mm.closir.com/slides?id=645982

For Investor Relations enquiries, please contact:

Anastasia Sobotiuk (Kyiv) +38 044 207 99 58

Segment Performance

Poultry and Related Operations Segment

1) pps - percentage points

Chicken meat prices

The total volume of chicken meat sold to third parties in 9M 2021 remained the same and constituted 521,538 tonnes (9M 2020: 523,759 tonnes). In Q3 2021 domestic sales decreased by 12% to 76,401 tonnes, compared to Q3 2020 (by 5% higher compared to Q2 2021), mainly due to decreased sales of frozen chicken: whole chicken, fillet and quarters. Poultry exports remained relatively stable both y/y and q/q.

Poultry export price in Q3 2021 increased by 25% year-on-year, and by 5% quarter-on-quarter, mainly driven by strong prices on breast and fillet in Europe as well as positive price trends for quarters and small chicken in the MENA region.

Poultry prices on the domestic market in Q3 2021 increased by 39% year-on-year mainly affected by a substantial poultry production cost increase since Q4 2020 and upward price trends for all proteins.

Vegetable oil

In Q3 2021, sunflower oil sales volume amounted to 36,620 tonnes, down 57% year-on-year. In 9M 2021 MHP's sales of sunflower oil decreased by 49% compared to 9M 2020 to 127,760 tonnes, mainly due to decrease in production as a result of a decreased share of sunflower cake in fodder (due to change in the fodder recipe).

Sales of soybean oil amounted to 12,571 tonnes in Q3 2021, 9% higher year-on-year, and 35,587 tonnes in 9M 2021, 7% higher year-on-year, mainly as a result of raising production to support the increased share of soybean cake in fodder and increased third party sales. 

1) pps - percentage points

Revenue increased by 18% in 9M 2021 compared to 9M 2020 mainly as a result of increased prices of chicken meat.

IAS 41 standard loss in Q3 2021 amounted to US$ 11 million (compared with a US$ 17 million loss in Q3 2020) mainly as a result of an increase in cost of chicken meat.

Gross profit in Q3 2021 increased by 31% year-on-year to US$ 76 million. This was mainly due to the increases in chicken meat prices. Poultry production costs in Q3 2021 increased compared to Q2 2021 reflecting higher cost of fodder.

Adjusted EBITDA in 9M 2021 increased by 17%, as a result of an increase in gross profit partly offset by an increase in administration, sales and distribution expenses.

Grain Growing Operations Segment

In 2021, the Company is to harvest around 355,000 hectares of land.

As of the date of this report, the Company's harvesting campaign is almost complete. All spring crop (corn, soybeans and sunflower) yields are expected to be good and are in line with the Company's expectations taking into account weather conditions.

Crops current yields are as follows:

1) Ukraine - bunker weight, MHP: corn, sunflower, soya - bunker weight. 2) MHP: wheat, rapeseed - net yields. 3) MHP and Ukraine - net yields.

Revenue in 9M 2021 amounted to US$ 79 million compared to US$ 90 million in 9M 2020. The decrease was mainly attributable to the lower amount of crops in stock designated for sale as of 31 December 2020, compared to stock for sale as of 31 December 2019, mainly as a result of lower yields in 2020.

IAS 41 standard gain in 9M 2021 amounted to US$ 165 million compared to US$ 39 million in 9M 2020. The gain mainly represents the result of the revaluation of crops in fields (biological assets) at the reporting date, due to increases in grain prices and yields.

Meat Processing and Other Agricultural Operations segment

Sales volume of meat processing products remained almost unchanged year-on-year and amounted to 25,447 tonnes in 9M 2021. The average processed meat price increased by 13% year-on-year to UAH 80.02 per kg in 9M 2021 driven mainly by an increase in raw material price (poultry meat).

Sales volumes of convenience food in 9M 2021 remained stable and amounted to 14,107 tonnes. The average price in 9M 2021 increased by 17% to UAH 47.29 per kg (excluding VAT), due to increased sales of more expensive SKUs and expansion of cooperation with large HoReCa channels such as McDonalds Ukraine and KFC (since Q2 2021) with more marginal products sales increase.

1)pps - percentage points

2)includes milk, cattle, and feed grains.

Revenue in 9M 2021 increased by 19% year-on-year to US$ 126 million due to increase in price of meat processing products. Adjusted EBITDA decreased to US$ 11 million due to lower meat processing results driven mainly by an increase in cost.

European Operating Segment

Poultry sales in Q3 2021 increased by 15% to 19,367 tonnes (Q3 2021: 16,804 tonnes) and decreased by 1% quarter-on-quarter. This was facilitated by increased production of chicken meat following expansion of facilities in Croatia and Serbia. Average prices showed positive to stable trends year-on-year and constituted EUR 2.65 in Q3 2021.

1) includes sausages and convenience foods

Meat processing product sales were up 8% year-on-year and amounted to 11,030 tonnes in Q3 2021 (Q3 2020: 10,218 tonnes) and 12% quarter-on-quarter. Average prices in Q3 2021 increased by 3% to EUR 2.76, remained relatively stable in 9M 2021 year-on-year.

1) pps - percentage points.

Revenue increased by 21% to US$ 301 million in 9M 2021, mainly as a result of an increase in poultry sales volume. Adjusted EBITDA (net of IFRS 16) reached US$ 18 million and US$ 50 million in Q3 2021 and 9M 2021 respectively. An increase in Adjusted EBITDA in Q3 2021 year-on-year was mainly attributable to higher volumes sold and higher operational efficiencies that allowed PP to offset growing cost of raw materials.

Current Group Cash Flow

1)Calculated as cash used for Purchases of property, plant and equipment plus cash used for purchases of other non-current assets

2)Calculated as Net Cash from operating activities plus Cash used in investing activities plus Total financial activities

Cash flow from operations before changes in working capital in 9M 2021 amounted to US$ 278 million (9M 2020: US$ 196 million).

Use of funds in working capital during 9M 2021 was mostly related to investments in crops in the fields to be harvested in 2021. The difference compared to 9M 2020 was mainly attributable to lower investments in inventory during 9M 2021 (sunflower and soya) designated for internal consumption.

In 9M 2021 total CAPEX amounted to US$ 92 million mainly related to modernization projects, new products development, maintenance and further improvements at Perutnina Ptuj production facilities.

Debt Structure and Liquidity

1) Net of IFRS 16 adjustments: as if any lease that would have been treated as an operating lease under IAS 17 as was in effect before the 1 January 2019, is treated as an operating lease for purposes of this calculation. In accordance with covenants in MHP's bond and loan agreements, these data exclude the effects of IFRS 16 on accounting for operating leases.

2) Indebtedness under trade credit facilities that is required to be repaid within 12 months of drawdown should be excluded for purposes of this calculation.

As of 30 September 2021, the share of long-term debt in the total outstanding debt remained at 99%. The weighted average interest rate was below 7%.

As of 30 September 2021, MHP's cash and cash equivalents amounted to US$ 287 million. Net debt decreased to US$ 1,163 million, compared to US$ 1,244 million as at 31 December 2020.

The Net Debt / LTM adjusted EBITDA (net of IFRS 16) ratio was 2.09 as of 30 September 2021, lower than the limit of 3.0 defined in the Eurobond agreement.

As a hedge for currency risks, revenue from the export of grain, sunflower and soybean oil, sunflower husks, and chicken meat are denominated in US Dollars and Euros, sufficient for covering debt service expenses. Export revenue for 9M 2021 amounted to US$ 843 million or 51% of total revenue (US$ 761 million or 54% of total sales in 9M 2020).

SUBSEQUENT EVENTS/CHANGES IN THE BOARD

The Company announces today that Mr. Yuriy Melnyk, taking into consideration the length of his service as an Executive Director of MHP SE and Chief Operational Officer of MHP SE and the significance of rotation of executive directors, resigned from the Board of MHP SE with effect from 16 November 2021. Mr. Melnyk will continue to serve the Company as First Deputy CEO. Executive Chairman, Dr John Rich commented: "On behalf of the Board, I would like to express my appreciation and thanks to Yuriy Melnyk for the enormous contribution he has made to the success and development of MHP over the last 11 years. We are delighted that he will continue to serve the company as First Deputy CEO."

Outlook

The powerful combination of positive price and weather trends reported at the time of our half-year results in September has continued unabated through the harvesting season, which is now substantially completed with record crop yields. The combination of high global grain prices and actions the Company has taken to lock in forward sales give us confidence that results for the full year will be at the top end of our earlier expectations, with EBITDA in excess of US$ 600 million.

Looking ahead to 2022, some of these trends are expected to soften, and this will be compounded by further substantial cost increases, particularly in fertilizer, fodder and utilities, which we are already experiencing in the fourth quarter of this year. As a result, next year's results are expected to revert to more customary levels after MHP's exceptional performance in 2021.   Notes to Editors:

About MHP

MHP is the leading producer of poultry products not only in Ukraine , but also in the Balkans (Perutnina Ptuj Group) and in the EU.

Ukraine: MHP has the greatest market share (around 57% of industrial production) and highest brand recognition for its products. MHP owns and operates each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching and grow out to processing, marketing, distribution and sales (including through MHP's franchise outlets). Vertical integration reduces MHP's dependence on suppliers and its exposure to increases in raw material prices. In addition to cost efficiency, vertical integration also allows MHP to maintain strict biosecurity and to control the quality of its inputs and the resulting quality and consistency of its products through to the point of sale. To support its sales, MHP maintains a distribution network consisting of 15 distribution and logistical centres, within major Ukrainian cities. MHP uses its trucks for the distribution of its products, which Management believes reduces overall transportation costs and delivery times.

MHP also has a leading grain cultivation business growing corn to support the vertical integration of its chicken production and increasingly other grains, such as wheat and rape, for sale to third parties. MHP leases agricultural land located primarily in the highly fertile black soil regions of Ukraine.

The Balkans: Perutnina Ptuj is a leading poultry and meat-processing producer in the Balkans, has production assets in four Balkan countries: Slovenia, Croatia, Serbia, Bosnia and Herzegovina; owns distribution companies in Austria, Macedonia and Romania and supply products to 15 countries in Europe. Perutnina Ptuj is a vertically integrated company across all states of chicken meat production - feed, hatching eggs production and hatching, breeding, slaughtering, sausages and further poultry processing production.

Since May 15, 2008, MHP has traded on the London Stock Exchange under the ticker symbol MHPC.

Forward-Looking Statements

This press release might contain forward-looking statements that refer to future events or forecast financial indicators for MHP SE. Such statements do not guarantee that these are actions to be taken by MHP SE in the future, and estimates can be inaccurate and uncertain. Actual final indicators and results can considerably differ from those declared in any forward-looking statements. MHP SE does not intend to change these statements to reflect actual results.

MHP SE AND ITS SUBSIDIARIES

Interim condensed consolidated Financial Statements

As of and for the nine-month period ended 30 September 2021

CONTENTS

STATEMENT OF MEMBERS OF THE BOARD OF DIRECTORS................................................................. 3

MANAGEMENT REPORT........................................................................................................................ 4

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2021

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME.............................................................................................................................................................. 6

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION..................................... 8

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY..................................... 9

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS............................................... 11

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.............................. 13

1. Corporate information..................................................................................................................... 13

2. Basis of preparation and accounting policies................................................................................... 14

3. Changes in the group structure........................................................................................................ 15

4. Segment information...................................................................................................................... 16

5. Revenue........................................................................................................................................ 19

6. Profit for the period........................................................................................................................ 19

7. Deferred income............................................................................................................................ 20

8. Property, plant and equipment........................................................................................................ 20

9. Inventories and agricultural produce................................................................................................ 20

10. Biological assets......................................................................................................................... 20

11. Share capital............................................................................................................................... 20

12. Bank borrowings.......................................................................................................................... 21

13. Bonds issued.............................................................................................................................. 22

14. Related party balances and transactions....................................................................................... 24

15. Contingencies and contractual commitments................................................................................. 25

16. Fair value of financial instruments................................................................................................. 27

17. Risk management policy.............................................................................................................. 28

18. Dividends.................................................................................................................................... 29

19. Subsequent events...................................................................................................................... 29

20. Authorization of the interim condensed consolidated financial statements....................................... 29

STATEMENT OF MEMBERS OF THE BOARD OF DIRECTORS

In accordance with Article 10 of the Transparency Requirements (Securities for Trading on Regulated Market) Law 190(l)/2007 ("Law"), as amended, we the members of the Board of Directors of MHP SE confirm that to the best of our knowledge:

(a) The interim condensed consolidated financial statements for the period from 1 January 2021 to30 September 2021 that are presented on pages 6 to 29:

i. were prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union and in accordance with the provisions of Article 10 (4) of the Law, and

ii. give a true and fair view of the assets and liabilities, the financial position and the profits of MHP SE and the businesses that are included in the interim condensed consolidated financial statements as a whole, and

(b) the interim management report gives a fair review of the information required under Article 10 (6) of the Law.

17 November 2021

Members of the Board of Directors:

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoriia Kapeliushna

Director John Grant

Director John Clifford Rich

Director Philip J Wilkinson

Director Christakis Taoushanis

MANAGEMENT REPORT

Key financial highlights

During the nine-month period ended 30 September 2021 consolidated revenue increased by 16% and amounted to USD 1,646,586 thousand, compared to USD 1,414,017 thousand for the nine-month period ended 30 September 2020. The increase in revenue was mainly attributable to increase in the export and domestic price as well as growth in export volume of chicken meat sold. Export sales for the nine-month period ended 30 September 2021 constituted 51% of total revenue and amounted to USD 842,948 thousand, compared to USD 761,244 thousand, and 54% of total revenue for the nine-month period ended 30 September 2020. The increase in export revenue was mainly attributable to increase in the price and volume of chicken meat sold.

Gross profit increased by 78% and amounted to USD 572,991 thousand for the nine-month period ended30 September 2021 compared to USD 322,399 thousand for the nine-month period ended 30 September 2020. The increase was driven mainly by higher returns earned by the grain growing and poultry and related operations segments due to increase in grain and poultry meat prices respectively.

Operating profit increased by 114% and amounted to USD 416,153 thousand for the nine-month period ended 30 September 2021 compared to USD 194,410 thousand for the nine-month period ended 30 September 2020, mainly as a result of an increase in gross profit.

Profit from continuing operations for the nine-month period ended 30 September 2021 amounted to USD 376,847 thousand, compared to loss of USD 107,617 thousand for the nine-month period ended 30 September 2020. The growth is mainly due to increase in operating profit as well as appreciation of Ukrainian Hryvnia against US Dollar and EURO, which resulted in foreign exchange gain of USD 74,680 thousand for the nine-month period ended 30 September 2021 compared to loss of USD 190,500 thousand for the nine-month period ended 30 September 2020.

Having regard to the activities of the Group, management believes that the above measures are frequently used by investors, analysts and stakeholders to evaluate the efficiency of the Group's operations. For further information on the above measures, please refer to page 6 of the interim condensed consolidated financial statements for the nine-month period ended 30 September 2021.

Related parties

During the nine-month periods ended 30 September 2021 and 30 September 2020 the Group entered into transactions with related parties that are under common control of the Principal Shareholder of the Group (Note 1) in the ordinary course of business. Detailed information on operations with related parties is disclosed in Note 14.

Dividends

At the extraordinary general meeting, which was held on 28 April 2021, the Shareholders of MHP SE have approved payment of an annual dividend of USD 0.2803 per share, equivalent to USD 30,000 thousand to shareholders on the register as of 7 May 2021. As at 30 September 2021 dividends were fully paid to shareholders.

At its meeting on 17 November, in recognition of the Company's exceptional performance in 2021, the Board of Directors approved the payment of a one-off special dividend of US$ 0.2803 per share, equivalent to USD 30,000 thousand. Details of payment, which is expected to be made in December 2021, will be announced later this month. The Board will consider payment of its customary annual dividend in March 2022.

Risks and uncertainties

There are a number of potential risks and uncertainties, which could have a material impact on the Group's performance over the remaining three months of the financial year and could cause actual results to differ materially from expected and historical results. The directors do not consider that the principal risks and uncertainties have changed since the publication of the annual report for the year ended 31 December 2020. A detailed explanation of the risks, and how the Group seeks to mitigate the risks, can be found on pages 154 to 157 of the annual report which is available at www.mhp.com.cy.

COVID-19

In 2020 a new coronavirus disease (COVID-19) spread rapidly all over the world resulting in the announcement of pandemic status by the World Health Organization in March 2020.

The world economy entered a period of unprecedented health care crisis that has already caused considerable global disruption in business activities and everyday life.

Risks and uncertainties (continued)

COVID-19

COVID-19 had an adverse impact on 2020 earnings, mainly because of the impact on prices and exported volumes as many global competitors were experiencing reduced demand and resulting excess capacity. At the end of 2020 and in 9M 2021 the situation stabilized temporarily, although it still could negatively impact the remainder of 2021. These challenges could increase our operating costs and negatively impact our volumes. Management cannot currently predict the ultimate impact that COVID-19 will have on short and long-term demand, as it will depend on, among other things, the severity and duration of the COVID-19 crisis.

Management has concluded that the event does not have an immediate material impact on the business operations. The Company's liquidity is expected to be adequate to continue to run operations and meet obligations as they become due in the foreseeable future.

17 November 2021

On behalf of the Board: 

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoriia Kapeliushna

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

for the nine-month period ended 30 September 2021

(in thousands of US dollars, unless otherwise indicated)

The accompanying notes on the pages 13 to 29 form an integral part of these interim condensed consolidated financial statements

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (continued)

for the nine-month period ended 30 September 2021

(in thousands of US dollars, unless otherwise indicated)

On behalf of the Board: 

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoriia Kapeliushna

The accompanying notes on the pages 13 to 29 form an integral part of these interim condensed consolidated financial statements

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as of 30 September 2021

(in thousands of US dollars, unless otherwise indicated)

On behalf of the Board:

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoriia Kapeliushna

The accompanying notes on the pages 13 to 29 form an integral part of these interim condensed consolidated financial statements

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the nine-month period ended 30 September 2021

(in thousands of US dollars, unless otherwise indicated)

On behalf of the Board:

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoriia Kapeliushna

The accompanying notes on the pages 13 to 29 form an integral part of these interim condensed consolidated financial statements

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the nine-month period ended 30 September 2020

(in thousands of US dollars, unless otherwise indicated)