Kernel reports 73.7% yoy increase in grain sales in Q1 FY2014

Kernel Holding S.A. is pleased to publish the Operations Update for the three months ended 30 September 2013. 49.3% yoy decrease in crushing volumes due to (1) lower carry-over stocks of sunflower seed from the previous season, as below average sunflower see d harvest in 2012/13 resulted in the low availability of sunflower seed at the end of the marketing year and downwardly affected crushing plants utilization in Q4 FY2013 and Q1 FY2014, and (2) the rainy weather in September 2013 which delayed the supply of seed for the new season.

50.4% yoy decrease in bulk oil sales due to a combination of (1) lower crushing and (2) lower bulk oil stocks as of 30 June 2013 compared to 30 June 2012.

73.7% yoy increase in grain sales driven by the ramp up of grain expo

rts from the Russian Federation through the Taman port, while the pace of exports from Ukraine is comparably slower due to: (1) lagging autumn crop harvesting, (2) farmers’ unwillingness to accept low grain prices, and (3) the anticipation of the VAT reimbursement on grain exports to begin on January 1, 2014.

5.1% yoy increase in export terminal throughput, with addition of Ta

Corporate:  On July 18, 2013, the board of directors of Kernel Holding S.A. announced the approval of the dividend policy, adopting the dividend per share approach (DPS). Starting from the FY 2014 results announcement, Kernel Holding S.A. intends to maintain a sustainable annual dividend of USD 0.25 per share. The proposed dividend will be declared and paid in US dollars and will be subject to shareholder approval at the general meeting of the shareholders. In September 2013, Kernel Holding S.A. sold, via its subsidiaries, the Orzhytsa sugar plant property.man port throughput in the Russian Federation largely offset by the lower pace of grain exports from Ukraine.

In October 2013, Kernel Holding S.A., in accordance with the previously announced strategy to divest remotely located farmland, completed, via its subsidiary, the sale of the farming operations located in southern Ukraine for a total consideration of USD 7.0 million.