Mhp Reg S Regulatory News (MHPC)

16 November 2022, Limassol, Cyprus

MHP SE

Financial Results for the Third Quarter and Nine Months ended 30 September 2022

MHP SE (LSE:MHPC), the parent company of a leading international food & agrotech group with headquarters in Ukraine, today announces its unaudited results for the third quarter ended 30 September 2022. Hereinafter, MHP SE and its subsidiaries are referred to as "MHP", "The Company" or "The Group".

WAR IN UKRAINE - UPDATE

Since the last update (September 2022) the war in Ukraine has escalated. Since October, the Kremlin has been conducting massive missile strikes on the territory of Ukraine, fiercely attacking the county's energy infrastructure. This has led to the complete destruction of around 40% of Ukraine's energy infrastructure. Although the recent recovery of Kherson has been encouraging, the overall situation remains highly fluid and the outlook is subject to extraordinary uncertainty.

MHP faced complex challenges and disruptions to operations in the middle of October, when a number of the country's electricity generation stations were hit by missile attacks. Operations at some MHP facilities had to shut down for a short period of time after these missile hits. As of today, MHP is again operating close to full capacity, using a combination of state grids, electricity generated at MHP's biogas stations and diesel generators. However, events have shown that the situation can deteriorate seriously, quickly and without notice. 

Frequent and prolonged disruptions in electricity supply continue to have a severe detrimental effect both on business operations and the lives of all employees based in Ukraine. Management is taking every possible step to ease the impact of the disruptions.

The UN-brokered grain deal remains in place, despite some challenging discussions which took place at the end of October. Agricultural companies continue to export from Ukraine animal feed, grain and vegetable oils to a number of African, MENA and EU countries. So far, according to the UN's Black Sea Grain Initiative's (BSGI) joint coordination center, 10.1 million tonnes of agricultural produce have been shipped on 482 vessels.

The Group has incurred substantial war-related costs since the Russian invasion on 24 February. For the period ended 30 September 2022 these amounted to almost US$ 45 million, including community support donations, write-off of inventories and biological assets, and other war-related expenses. Working with volunteers, the Group has provided humanitarian aid, including the free supply of 13,000 tonnes of poultry products to the population of Ukraine since the beginning of the war.

MHP Team would like to thank the Defense Forces of Ukraine, which, since February 2022, have de-occupied a total of 52.5% of the territories captured by the Russian Federation - almost 78,000 square kilometers.

OPERATIONAL HIGHLIGHTS

Q3 2022

· Poultry production volume in Ukraine was down 13% at 169,448 tonnes (Q3 2021: 194,199 tonnes). Poultry production volumes of the European Operating Segment (Perutnina Ptuj, or PP) increased by 11% to 33,084 tonnes (Q3 2021: 29,812 tonnes).

· MHP average chicken meat price increased by 12% to US$ 2.00 per kg (Q3 2021: US$ 1.79 per kg) excluding VAT. The average price of chicken meat produced by PP increased by 26% to EUR 3.34 per kg (Q3 2021: EUR 2.65 per kg).

· Chicken meat exports from Ukraine declined by 9% to 99,250 tonnes (Q3 2021 - 108,963 tonnes).

9M 2022

· Poultry production volume in Ukraine decreased by 7% to 515,488  tonnes (9M 2021: 551,729  tonnes). Poultry production volumes of PP increased by 11% to 92,892 tonnes (9M 2021: 83,930 tonnes).

· MHP average chicken meat price increased by 20% y/y to US$ 1.97 per kg (9M 2021: US$ 1.64 per kg) excluding VAT. The average price of poultry meat produced by PP increased by 25% to EUR 3.19 per kg (9M 2021: EUR 2.56 per kg).

· Chicken meat exports from Ukraine declined by 14% to 257,250 tonnes (9M 2021: 300,278 tonnes).

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FINANCIAL HIGHLIGHTS

Q3 2022

· Revenue of US$ 727 million, increased by 10% y/y (Q3 2021: US$ 658 million).

· Export revenue of US$ 470 million, 65% of total revenue (Q3 2021: US$  341 million, 52% of total revenue).

· Operating profit of US$ 100 million, decreased by 37% y/y; operating margin decreased to 14% (Q3 2021: 24%).

· Adjusted EBITDA (net of IFRS 16) decreased to US$  121 million from US$ 186 million; adjusted EBITDA margin (net of IFRS 16) decreased to 17% from 28%.

· Net loss amounted to US$ 181 million, compared to a profit of US$ 145 million in Q3 2021, primarily reflecting US$ 275 million of non-cash foreign exchange translation loss in Q3 2022 compared to gain of US$ 24 million in Q3 2021.

9M 2022

· Revenue increased to US$ 1,876 million, up by 14% y/y (9M 2021: US$ 1,647 million).

· Export revenue increased to US$ 1,110 million, 32% higher y/y, representing 59% of total revenue (9M 2021: US$ 843 million, 51% of total revenue).

· Operating profit decreased to US$ 176 million, down by 57% y/y (9M 2021: US$ 413 million) and operating margin decreased from 25% to 9%.

· Adjusted EBITDA (net of IFRS 16) decreased by 47% to US$ 275 million (9M 2021: US$ 519 million); adjusted EBITDA margin (net of IFRS 16) decreased from 32% to 15%.

· Net loss amounted to US$ 269 million, compared to a profit of US$ 377 million in 9M 2021, primarily reflecting a US$ 367 million non-cash foreign exchange loss in 9M 2022 compared with a US$ 75 million foreign exchange gain in 9M 2021.

FINANCIAL OVERVIEW

1) pps - percentage points

Average official FX rate for Q3: UAH/US$ 34.98 in 2022 and UAH/US$ 26.91 in 2021.

Average official FX rate for 9M 2022 UAH/US$ 30.95 and for 9M 2021 UAH/US$ 27.49.

DIAL-IN DETAILS

MHP's management will host a conference call for investors and analysts followed by Q&A on the day of the results.

The dial-in details are:

Time: 14.00 London / 16.00 Kyiv / 09.00 New York

Title: Financial results for Q3 and H3 2022

UK: +44 203 984 9844

Ukraine: +380 89 324 0624

USA: +1 718 866 4614

PIN code: 645982

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

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

For Investor Relations enquiries, please contact:

Anastasia Sobotiuk (Kyiv) +38 050 339 29 99

+357 99 76 71 26 a.sobotyuk@mhp.com.ua

Segment Performance

Poultry and related operations segment

1) Total poultry sales include domestic sales, export sales and sales of culinary products; data for 2021 has been adjusted accordingly to this approach

2) pps - percentage points

Chicken meat

The total volume of chicken meat sold to third parties in 9M 2022 decreased by 9% to 477,068 tonnes (9M 2021: 521,538 tonnes) mainly as a result of logistical challenges for export sales and lower demand in Ukraine due to the effects of the war.

Poultry export prices in Q3 2022 increased by 41% y/y, while decreased by 5% q/q, mainly driven by product mix optimization as well as by substantial international price increases across all markets (particularly fillet prices in the EU and MENA and small bird prices in the MENA region).

Driven by war-related news and challenges as well as seasonality, in Q2 2022, poultry prices increased significantly. Towards the end of Q3 2022, as a result of a change in the economic environment in the EU and UK and increased competition in the MENA region, export price trends have changed to negative. Poultry prices across all export markets (MENA, EU and CIS) from September 2022 started to go down sharply, with current prices being substantially lower than in Q3 2022. Moreover, MHP has been facing a triple increase in its logistic costs y/y since March 2022, while our competitors from worldwide have experienced considerably lower logistics cost increases.

In Q3 2022 poultry prices on the domestic market in USD terms decreased by 25% y/y, and by 6% q/q, predominantly driven by significant depreciation of currency. In UAH terms, in Q3 2022, poultry prices remained stable y/y. However, prices increased by 13% q/q driven mainly by increased share of fresh chicken meat sales compared with Q2 2022.

Vegetable oil

In Q3 2022, sunflower oil sales volume amounted to 95,436 tonnes, up 161% y/y. In 9M 2022 MHP's sales of sunflower oil increased by 38% compared to 9M 2021 to 176,912 tonnes, mainly driven by an increase in production of sunflower cake (change in the recipe), which was substantially lower in Q3 2021 (when the fodder recipe was based more on soyabean cake) as well as a positive change (higher ships' turnover) in logistics.

Sales of soybean oil amounted to 7,716 tonnes in Q3 2022, 39% lower y/y, and 27,263 tonnes in 9M 2022, 23% lower y/y, mainly as a result of lower production volume of soyabean cake required for the fodder recipe substituted by sunflower cake (since Q2 2022) and challenges associated with export logistics because of the war in Ukraine.

Financial result and trends

1) pps - percentage points

In 9M 2022, revenue increased by 18% y/y as a result of price increase on export markets which was offset by lower sales volume of meat. An increase of revenue by 26% q/q was primary attributable to a substantial increase in sales volume of vegetable oil due to change in fodder recipe.

IAS 41 standard gain in Q3 2022 amounted to US$ 9 million mainly as a result of an increase in quantity of chicken meat held on stock abroad.

Gross profit in 9M 2022 increased by 15% y/y to US$ 252 million. The increase was mainly driven by increase in price of chicken meat and higher sales volume of sunflower oil.

In 9M 2022, adjusted EBITDA decreased by 12%, mainly as a result of war-related expenses (including donations, damages and assets write-offs).

Grain growing operations

In 2022 the Company expects to harvest around 345,000 hectares of land.

As of today, MHP's harvesting campaign of sunflower is almost complete, corn harvesting is 60% complete and soya harvesting is around 85% complete.

Sowing campaign of winter crops is almost 90% complete on around 74,300 ha of land (around 55% of land is under winter wheat, around 45% of land is under winter rapeseed).

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.

Financial result and trends

Grain growing segment's revenue in 9M 2022 amounted to US$ 86 million compared to US$ 79 million in 9M 2021. The increase was mainly attributable to the higher volume of crops in stock designated for sale as of 31 December 2021, compared to stock for sale as of 31 December 2020, mainly as a result of higher yields in 2021.

IAS 41 standard loss in 9M 2022 amounted to US$ 147 million compared to a gain of US$ 165 million in 9M 2021. The loss represents the net change in the effect of revaluation of agricultural produce (sunflower, corn, wheat and soya) as well as a fall in revaluation of crops in fields due to lower expected yields and prices from spring crops.

Meat processing and other agricultural operations segment

Sales volume of meat processing products decreased by 55% y/y to 11,412 tonnes in 9M 2022 driven by war-related challenges that resulted in temporary suspension of production facilities of the "Ukrainian Bacon" in the Donetsk region and subsequent partial redeployment of its operations in Central Ukraine. The average price increased by 16% y/y to UAH 92.86 per kg in 9M 2022, driven mainly by an increase in raw material price (poultry meat).

Sales volumes of convenience food in 9M 2022 decreased by 9% to 12,831 tonnes, mainly driven by significant disruptions in HoReCa (both KFC and McDonalds had to cease operations in Ukraine because of the war). The average price in 9M 2022 increased by 24% to UAH 58.52 per kg (excluding VAT) mainly driven by raw material price increase as well as focus on more marginal products sales increase.

Financial result and trends

1) pps - percentage points;

2) includes milk, cattle and feed grains.

The segment's revenue in 9M 2022 decreased by 25% to US$ 95 million. Adjusted EBITDA in 9M 2022 was US$ 4 million compared to US$ 11 million in 9M 2021 mainly due to the effects of the war and significant disruptions in demand for HoReCa segment.

European operating segment (PP)

In Q3 2022, poultry sales of the European operating segment increased by 10% y/y to 21,263 tonnes, while increasing by 8% compared with Q2. This was driven by an increased production of chicken meat following expansion of facilities in Croatia and Serbia. Average price increased by 26% in Q3 2022 to EUR 3.34 (Q3 2021: EUR 2.65).

1) includes sausages and convenience foods

Meat processing product sales were up by 8% y/y to 11,960 tonnes in Q3 2022 (Q3 2021: 11,030 tonnes), at the same time increased by 17% compared with Q2. Average price in Q3 2022 increased by 13% to EUR 3.11.

Financial result and trends

1) pps - percentage points.

European operating segment's revenue in 9M 2022 increased by 15% to US$ 345 million (9M 2021: US$ 301 million), mainly as a result of the increase in poultry sales volume and price.

Adjusted EBITDA (net of IFRS 16) amounted to US$ 56 million for 9M 2022 compared with US$ 50 million for 9M 2021. Adjusted EBITDA margin (net of IFRS 16) remains almost on the same level at 16%.

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 Cash used in financing activities

Cash obtained from operations in 9M 2022 was mainly invested in working capital, mostly related to:

· An increase in trade accounts receivable for sunflower oil due to longer settlement periods as a result of increased delivery periods;

· An increase of VAT receivables;

· A fall in trade accounts payable for plant protection products and seeds and an increase in advances made for fuel to be used in the forthcoming harvesting and sowing campaigns;

· Higher amounts of chicken meat as at the end of 9M 2022 designated for sale and;

· An increase in investments in biological assets during the crop sowing campaign, due to higher cost per ha comparing to previous year;

· Higher investments in energy supplies and fertilizers as well as higher amount of sunflower oil in inventories as at the end reporting period.

Due to unfavorable weather conditions that led to a shift of the harvesting campaign, MHP made lower investments in sunflower seeds as of 30 September 2022 compared to the same period last year. This will result in more substantial investment requirements in sunflower seeds in Q4 2022.

In 9M 2022 total CAPEX amounted to US$ 106 million mainly related to modernization projects, new products development and the maintenance and improvement of 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 2022, the share of long-term debt in the total outstanding debt remained unchanged at 98%. The weighted average interest rate is unchanged at around 7%.

As of 30 September 2022, MHP's cash and cash equivalents amounted to US$ 317 million. Net debt decreased to US$ 1,186 million, compared to US$ 1,230 million as at 31 December 2021, but was almost unchanged compared to US$ 1,164 as at 30 September 2021.

The Net Debt / LTM adjusted EBITDA (net of IFRS 16) ratio was 2.94 as of 30 September 2022, lower than the limit of 3.0 defined in the Eurobond agreement.

As a hedge for currency risks, revenue from the exports of grain, sunflower and soybean oil, sunflower husks and chicken meat, which are denominated in US Dollars and Euros, are more than sufficient to cover debt service expenses. Export revenue for 9M 2022 amounted to US$ 1,110 million or 59% of total revenue (US$ 843 million or 51% of total sales in 9M 2021).

Outlook

Although the recent recovery of Kherson has been encouraging, the overall situation in Ukraine remains highly fluid and the outlook continues to be subject to extraordinary uncertainty. Nonetheless, MHP has been successful in maintaining operations at close to full capacity and, barring unexpected developments, expects to be able to continue to do so.As far as normal trading is concerned, prices in several export markets (including the Middle East and EU) have softened substantially, and are expected to remain weak, due to excess supply and increased competition. The significant incremental costs incurred in recent months due to global inflationary pressures as well as increased logistics costs are expected to continue into 2023.

Grain and vegetable oil prices are likely to remain stable and high at least into 2023, reflecting ongoing global supply constraints, compounded by the ongoing effects of the war in Ukraine.

Following the strong support demonstrated in March 2022 by holders of our Eurobonds and our bankers, the Group expects to pay in full and on time all bond coupons deferred from March-May 2022.

Notes to Editors:

About MHP

MHP SE is the parent company of a leading international food & agrotech group with headquarters in Ukraine and also in the Balkans (Perutnina Ptuj Group).

Ukraine: MHP has the greatest market share and the 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 9 distribution and logistical centers, 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.

MHP trades 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 2022

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 2022

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...................................................................................................... 18

4. Segment information...................................................................................................................... 19

5. Revenue........................................................................................................................................ 22

6. Profit for the period........................................................................................................................ 22

7. Property, plant and equipment........................................................................................................ 23

8. Agricultural produce....................................................................................................................... 23

9. Biological assets............................................................................................................................ 23

10.  Share capital............................................................................................................................... 23

11.  Bank borrowings.......................................................................................................................... 24

12.  Bonds issued.............................................................................................................................. 25

13.  Related party balances and transactions....................................................................................... 28

14.  Operating environment................................................................................................................. 29

15.  Contingencies and contractual commitments................................................................................. 30

16.  Fair value of financial instruments................................................................................................. 31

17.  Risk management policy.............................................................................................................. 32

18.  Dividends.................................................................................................................................... 33

19.  Subsequent events...................................................................................................................... 33

20.  Authorization of the interim condensed consolidated financial statements....................................... 34

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 2022 to30 September 2022 that are presented on pages 6 to 34:

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.

15 November 2022

Members of the Board of Directors:

Chief Executive Officer   Yuriy Kosyuk

Chief Financial Officer Viktoria Kapelyushnaya

Director John Grant

Director John Clifford Rich

Director Philip J Wilkinson

Director Andriy Bulakh

Director Christakis Taoushanis

MANAGEMENT REPORT

Key financial highlights

During the nine-month period ended 30 September 2022 consolidated revenue increased by 14% to USD 1,876,118 thousand, compared to USD 1,646,586 thousand for the nine-month period ended 30 September 2021. Export sales for the nine-month period ended 30 September 2022 constituted 59% of total revenue at USD 1,109,912 thousand, compared to USD 842,948 thousand, and 51% of total revenue for the nine-month period ended 30 September 2021. The increase in revenue was mainly attributable to higher price and quantity of sunflower oil exported as a result of change in fodder recipe, as well as an increase in chicken export prices partly offset by a fall volumes adversely effected by difficult and disrupted logistics caused by the War from 24 February 2022.

Gross profit decreased by 30% to USD 398,478 thousand for the nine-month period ended30 September 2022 compared to USD 572,991 thousand for the nine-month period ended 30 September 2021. The decrease was driven mainly by lower gross profit of the grain growing segment due to higher costs of production and lower grain prices, which resulted in a lower valuation of biological assets.

Operating profit decreased by 57% to USD 175,550 thousand for the nine-month period ended 30 September 2022 compared to USD 412,927 thousand for the nine-month period ended 30 September 2021, mainly as a result of the reduction in gross profit and a significant increase in write-offs of inventories and biological assets, impairment of property, plant and equipment and other war-related expenses such as donations to Ukrainian communities affected by the Russian invasion (Note 14).

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 9 of the interim condensed consolidated financial statements for the nine-month period ended 30 September 2022.

Dividends

In view of the uncertainties created by the Russian invasion, the Directors have decided not to declare a final dividend for the 2021 financial year. No interim dividend has been declared for the nine-month period ended 30 September 2022.

At the annual general meeting held on 28 April 2021, the Shareholders of MHP SE approved payment of an annual dividend from profits of 2020 of USD 0.2803 per share, equivalent to USD 30,000 thousand. As at 30 September 2021 dividends were fully paid to shareholders.

Risks and uncertainties

Russian invasion

On February 24, 2022, Russian forces began a military invasion of Ukraine resulting in a full-scale war across the Ukrainian State (the "War"). Since that time, focused on the continuity and sustainability of its business and the preservation of value for all stakeholders, the Group has concentrated on two key priorities: the safety of its employees and the food security Ukraine by prioritizing a continuous supply of food to the population.

As a result of the War, MHP has experienced a number of significant disruptions and operational issues within its business, which are described in detail in Note 2 Basis of preparation and accounting policies and Note 14 Operating environment.

Management believes that the Group has adequate resources to continue in operational existence for the foreseeable future. However, due to the currently unpredictable effects of the ongoing War on the significant assumptions underlying management forecasts, Management has concluded that a material uncertainty exists, which may cast significant doubt on the Group's ability to continue as a going concern and, therefore, on its ability to realize its assets and discharge its liabilities in the normal course of business.

Risks and uncertainties (continued)

Other 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. Apart from the War, 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 2021. A detailed explanation of the risks, and how the Group seeks to mitigate the risks, can be found on pages 156 to 159 of the annual report which is available at mhp.com.cy.

15 November 2022

On behalf of the Board:

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoria Kapelyushnaya

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

for the nine-month period ended 30 September 2022

(in thousands of US dollars, unless otherwise indicated)

The accompanying notes on the pages 16 to 37 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 2022

(in thousands of US dollars, unless otherwise indicated)

On behalf of the Board:

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoria Kapelyushnaya

The accompanying notes on the pages 13 to 34 form an integral part of these interim condensed consolidated financial statements

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as of 30 September 2022

(in thousands of US dollars, unless otherwise indicated)