Grain and Oilseed Milling (3112) - 2011

T r e n d s
o f
Y o u r
B u s i n e s s
E x c l u s i v e l y
d i s t r i b u t e d
b y
Romania, 2011
Grain and Oilseed Milling
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Grain and O ils eed M illing
Contents
1. Macroeconomic Scenario 2. Analysis of Investment Attractiveness - Attractiveness Indicators - Driving Forces of Attractiveness - Risk-Profitability Maps 3. Concentration in the Sector 4. Analysis of Financial Ratios - Distributions of Financials - General Indicators - Profitability Ratios - Liquidity Ratios - Financial Cycles - Financial Leverage Ratios - Production Factors - Costs - Structure of Current Assets - DuPonts Pyramid 5. Companies from the Sector - Top Players from the Sector - Listed Companies from the Sector - Mergers and Acquisitions 6. Key Concepts - Definitions of Indices - Definitions of Selected Concepts
Page
-4 -5 - 5 - 5 - 7 -9 - 10 - 10 - 11 - 14 - 16 - 18 - 19 - 21 - 24 - 26 - 28 - 29 - 29 - 30 - 31 - 32 - 32 - 34
! This report has been compiled to the best of the authors knowledge, using information originating from verified sources. The authors of the report take no responsibility for the consequences of any decisions and actions taken as a result of the use of this report. This report refers to the Romanian economy.
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EconTrends for Romania is the unique tool for analyzing various Romanian industries. It contains description of macroeconomic environment, analysis of investment attractiveness, detailed analysis of revenue as well as in-depth analysis of a wide scope of financial ratios. The report covers not the full sector but only its major part, since it is build on the bottom-up aggregated financial data from C reditinfo Romania and C C IR (C hamber of C ommerce and Industry). The Short-Term Investment Attractiveness Ranking developed for Romania under the EconTrends methodology is based on the so called Profitability Index, that shows forecasted dynamics of EBIT. It serves as a proxy for dynamics of dirty cash flows in enterprises from a given industry. Fundamental components of the Profitability Index like net sales and EBIT margin, are forecasted using econometric models. The behavior over time of all these categories is illustrated using appropriate pictograms in the Map of Forces. Profitability of a given industry is evaluated on the basis of average forecasted dynamics of EBIT in two following years. Every industry has a granted profitability mark that ranges from 1 up to 5, which reflects its profitability versus other industries. Higher mark indicates higher profitability. Risk of an industry in turn is measured by the standard deviation of forecasted Profitability Index. Every industry has also an assigned risk mark that ranges from 1 up to 5, which reflects its risk versus other industries. Higher mark means here lower risk. Each industry is at the end characterized by the following two parameters its profitability and risk. They are used for evaluation of the short term investment attractiveness, that reflects preferences of investors seeking to maximize their rates of return and to minimize the risk they face. The final Short-Term Investment Attractiveness Ranking of an analyzed industry explains its relative attractiveness comparing to other sectors. The lower a position within the ranking the higher is attractiveness of an industry. C hanges in this position replicate either changes in profitability or in risk. Additionally like in the case of profitability and risk measurement the final attractiveness is graded from 1 to 5, where the highest grade means the highest attractiveness. Lower grade means worse investment-weather conditions, so either lower profitability or higher risk. The Short-Term Investment Attractiveness Ranking is presented according to the structure of the North American Industry C lassification System (NAIC S). However the used system of industry classification is not fully compatible with the Romanian C lassification of Activities due to Romanian statistics - specific factors.
Analysed sector:
Class
There are no subclasses in analysed class. Grain and Oilseed Milling
Only the subclasses marked by an arrow are covered by EconTrends reports.

-3-
Macroeconomic Scenario
Period Nominal GDP Growth Real GDP Growth Inflation (C PI) Inflation (PPI) USD/RON exchange rate
Datasource: ISI, EMIS, CEIC
2009 97.4 93.4 105.6 101.9 3.05
2010 104.3 98.3 106.1 106.3 3.18
2011 110.7 102.5 105.8 108.9 3.05
2012 106.5 100.9 103.3 106.2 3.47
2013 103.8 101.8 103.3 104.5 3.35
Nominal GDP Growth

140
120
100
-> expected fall of GDP nominal growth in 2013 -> expected slight fall of GDP real growth in 2013 -> expected slight fall of C PI inflation in 2013 -> expected slight fall of PPI inflation in 2013 -> expected weakening of USD/RON exchange rate in 2013
Growth
80
60
40
20
Period
Inflation (CPI)
114 112 110
108
Growth
106 104 102 100

98
Period
Inflation (PPI)
125
120 115 110 105 100 95 90
Growth
Period
Forecast
Forecast
Forecast
-4-
Analysis of Investment Attractiveness

Attractiveness Indicators
5
0 1 1 1 1 0 0 1 1 1
0 1 5
Current Attractiveness
Profitability
5 4 3 2 1
0 1 1 1 1 0 0 0 1 1
0 1 5
Forecasted Attractiveness
4 3 2 1
Forecasted Attractiveness
Current Attractiveness
5 4
5 4
expected stabilisation of attractiveness in the sector -> expected stabilisation of profitability -> expected rise of risk (expected fall in risk mark shown on the chart)
Risk
Profitability
3 2 1
Risk
3 2 1
Driving Forces of Attractiveness

- Profitability Index - y/y dynamics - Net Revenue per C ompany - y/y dynamics - EBIT Margin - y/y dynamics
Map of forces for the sector
Current situation Forecasted situation Net revenue - Y/Y dynamics EBIT margin - Y/Y dynamics Profitability index - Y/Y dynamics
b e
Symbol's colour
Dynamics of profit Positive impact on profits dynamics Negative impact on profits dynamics Neutral impact on profits dynamics
e b
e b
"+" "-" "o"
Symbols sign
Positive dynamics of "driving force" Negative dynamics of "driving force" Close to zero dynamics of "driving force"
Symbols orientation
Rise of dynamics comparing to previous year Fall of dynamics comparing to previous year Stabilisation of dynamics comparing to previous year
Net revenue per company - Y/Y dynamics

40%
Forecast
50%
expected rise in dynamics of net revenue in 2012 expected rise in dynamics of net revenue in 2013
40%
Net revenue per company - Y/Y dynamics
30% 20% 20%

10%
10%
0%
Profitability index - Y/Y dynamics
30%
0%
-10% -20%
-10%
-30%
-20% -40%
Period
Net revenue per company - Y/Y dynamics Profitability index - Y/Y dynamics
-5-
EBIT Margin - Y/Y dynamics

40%
Forecast
50%
40%
expected fall in dynamics of EBIT margin in 2012 expected fall in dynamics of EBIT margin in 2013
EBIT Margin - Y/Y dynamics
30%
20% 20%
10%
10% 0%
-10%
0%
-10% -20% -20%

-30%
-30%
-40%
Period
EBIT Margin - Y/Y dynamics Profitability index - Y/Y dynamics
Profitability index - Y/Y dynamics
30%
-6-
Risk-Profitability Maps
Risk - Profitability Map (current situation)
4.5
4.0
risk - profitability map (current situation)
3.5 3.0
2.5
Profitability
2.0
1.5
1.0 0.5
0.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0
-0.5
-1.0
Risk
All sectors Most efficient sectors
subclasses belonging to selected class Investors' utility function
Selected sector (Class): Grain and Oilseed Milling
Risk - Profitability Map (current situation) Zoom

0.2
0.1
0.1
0.1
Profitability
0.1
0.1
0.0
0.0
0.0 0.0 0.1 0.1 0.2 0.2 0.3 0.3 0.4 0.4 0.5
Risk
All sectors subclasses belonging to selected class Investors' utility function
Most efficient sectors Selected sector (Class): Grain and Oilseed Milling
-7-
Risk - Profitability Map (forecasted situation)

2.5
risk - profitability map (forecasted situation)
2.0
1.5
Profitability
1.0
0.5
0.0 0.0 0.5 1.0 1.5 2.0 2.5
-0.5
Risk
All sectors Most efficient sectors
subclasses belonging to selected class Investors' utility function
Selected sector (Class): Grain and Oilseed Milling
Risk - Profitability Map (forecasted situation) Zoom

0.1
0.1
0.1
Profitability
0.1
0.1
0.1
0.1
0.0
0.1
0.1
0.2
Risk
0.2
0.3
0.3
0.4
All sectors subclasses belonging to selected class Investors' utility function
Most efficient sectors Selected sector (Class): Grain and Oilseed Milling
-8-
Concentration in the Sector

Distribution of net revenues in the sector (2011)
100%
90%
80%
Perfect Equality Line
70%
60%
50%
Gini Coefficient 86.09%
40%
30%
20%
Lorenz Curve
10%
Perfect Inequality Line
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0% 100%
Cumulative share of companies from lower market share
Market share of top companies in the sector

Year Number of analysed companies The Herfindahl-Hirschman Index Top 1 company Top 2 companies Top 3 companies Top 4 companies Top 5 companies 2011 237 434 12.80% 20.82% 26.36% 31.50% 35.84%
Cumulative market share
Market power concentration measured by HerfindahlHirschman Index was weak in 2011 Net sales of top five companies in the sector reached the market share of 35.84% in 2011
-9-
Analysis of Financial Ratios

Distributions of Financials
Average value for the sector in 2010 0 210 25.83% 25.89% 24.71% 11.55% -539.65% 48.70% -318.30% 60.09% 4.51% 1.69% 4.65% 1.70% 10.59% 72.86% 105.73% 53.98% 8.51% 45.44% -4 71 81 156 45.70% 36.67% 16.76% 60.64% 10.74 27 166.83 7.72% 90.62 7.37% 58.95% 100.81% 191.71% 15.46 6.09% 1.62% 8.00% 61.74% 0.46% 2011 0
DIST RIBUT ION OF PA RA ME T E RS (The distribution of financial indicators in the sector)

20% 40% 60% 80%
II
III
IV
General Indicators
N umber of c ompanies Y /Y dynamic s of net revenue per c ompany [% ] Y /Y dynamic s of total operating c os t per c ompany [% ] Y /Y dynamic s of operating profit per c ompany [% ] Y /Y dynamic s of operating profit per profit- making c ompany [% ] Y /Y dynamic s of gros s profit per c ompany [% ] Y /Y dynamic s of gros s profit per profit- making c ompany [% ] Y /Y dynamic s of net profit per c ompany [% ] Y /Y dynamic s of net profit per profit- making c ompany [% ]
237 8.92% 9.84% -10.58% 39.18% 16.36% 88.89% 3.38% 84.27% 3.72% 1.62% 5.26% 1.76% 11.64% 62.45% 107.17% 51.09% 5.68% 45.33% 3 64 81 142 58.74% 33.41% 19.62% 64.15% 8.56 72 415.09 6.52% 195.39 6.28% 62.49% 109.58% 211.91% 26.07 5.13% 1.39% 7.48% 64.89% 0.39% 49.85% 21.40% 0.40% 14.30% -110 17 19 50 0.00% -2.86% 0.00% 35.42% 4.0 7 57.60 2.89% 33.01 3.84% 25.46% 15.56% 38.07% 10.31 2.28% 0.61% 2.33% 11.68% 0.21% 90.07% 42.50% 1.86% 34.80% -23 39 36 86 0.00% 19.78% 0.64% 60.03% 10.0 16 104.18 5.74% 50.80 6.86% 54.69% 68.14% 128.09% 12.53 4.54% 1.26% 3.87% 45.17% 0.47% 130.83% 75.56% 5.22% 60.25% 22 69 62 151 9.26% 36.41% 18.58% 74.43% 14.5 30 210.64 10.37% 101.63 11.65% 68.12% 121.84% 228.06% 15.13 8.15% 2.27% 7.21% 65.44% 0.78% 224.69% 136.24% 16.40% 107.94% 62 139 136 332 113.14% 63.35% 43.57% 101.46% 30.4 73 409.04 19.58% 272.43 21.39% 82.44% 186.78% 403.06% 24.14 15.27% 4.09% 12.46% 83.22% 1.86% -12.42% -12.80% -74.08% -42.84% -88.24% -67.13% -91.18% -60.71% -2.62% -4.84% 0.00% -3.87% 14.48% 8.87% 10.46% -26.33% -18.89% -40.28% -28.12% -39.42% -24.23% 1.64% 0.23% 1.59% 0.04% 16.10% 28.71% 29.22% 17.22% 17.96% 12.91% 13.08% 26.99% 28.00% 3.71% 1.40% 7.97% 0.87% 17.49% 53.28% 52.37% 103.73% 122.68% 106.24% 128.76% 137.57% 272.50% 7.68% 4.14% 25.25% 5.25% 25.95%
Profitability Ratios
O perating Sales M argin [% ] N et Sales M argin [% ] Return on E quity [% ] Return on A s s ets [% ] E ffec tive tax rate [% ] Share of profit- making c ompanies [% ]
Liquidity Ratios
C urrent ratio [% ] Q uic k ratio [% ] Super quic k ratio [% ] Rec eivables to liabilities ratio [% ]
Financial Cycles
D ays of c overage for C as h & E quivalent [days ] D ays of c overage for rec eivables [days ] D ays of c overage for inventories [days ] D ays of c overage for s hort term liabilities [days ]
Financial Leverage Ratios

D ebt to E quity ratio [% ] E quity to total as s ets ratio [% ] L ong- term liabilities to total liabilities ratio [% ] D ebt ratio [% ] O perating profit c overage [years ]
Production Factors
A verage employment per c ompany [pers on] L abour produc tivity [thou. RO N /pers on] L abour c os t as the s hare in total operating c os ts [% ] Fixed as s ets per employee [thou. RO N /pers on] L abour intens ity of produc tion [% ] M aterial & energy intens ity of produc tion [% ] T otal as s ets turnover [% ] Fixed as s ets produc tivity [% ] L abour c os t per employee [thou. RO N /pers on]
Costs
Share of wages in total operating c os ts [% ] Share of s oc ial c ontributions in total operating c os ts [% ] Share of external s ervic es in total operating c os t [% ] Share of material & energy us ed in total operating c os ts [% ] Share of taxes & fees in total operating c os ts [% ]
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General Indicators
Number of companies
P eriod Value Y /Y inc reas e 2008 211 -2 2009 197 -1 4 2010 210 13 2011 237 27
rise of number of companies covered by database in 2011 comparing to the value in 2010
Net revenue per company [thou RON]

P eriod Value [thou RON] Y /Y dynamic s [% ] 2008 22 472.52 3 0 .2 6 % 2009 18 795.58 -1 6 .3 6 % 2010 23 651.15 2 5 .8 3 % 2011 25 760.92 8 .9 2 %
fall of Y/Y dynamics of net revenue per company in 2011 comparing to the value in 2010
Total operating cost per company [thou RON]

P eriod Value [thou RON] Y /Y dynamic s [% ] 2008 21 135.21 3 0 .7 1 % 2009 17 940.10 -1 5 .1 2 % 2010 22 584.24 2 5 .8 9 % 2011 24 806.93 9 .8 4 %
fall of Y/Y dynamics of total operating cost per company in 2011 comparing to the value in 2010
Net revenue & total operating costs per company

30 000 25 000
[thou RON]
20 000 15 000 10 000 5 000 0
Net revenue per company [thou RON]
Total operating cost per company [thou RON]
Operating profit per company [thou RON]

P eriod Value [thou RON] Y /Y dynamic s [% ] 2008 1 337.30 2 3 .5 4 % 2009 855.48 -3 6 .0 3 % 2010 1 066.91 2 4 .7 1 % 2011 954.00 -1 0 .5 8 %
fall of Y/Y dynamics of operating profit per company in 2011 comparing to the value in 2010
Operating profit per company [thou RON]

1 600 400%
1 400
350% 300%
1 200 250%
[thou RON]
1 000
200% 150% 100% 50%
800
600
400 0% 200 -50%
-100%
Period
Operating profit per company [thou RON] Y/Y dynamics of operating profit per company [%]
Y/Y dynamics of operating profit per company [%]
-11-
Operating profit per profit-making company [thou RON]

P eriod Value [thou RON] Y /Y dynamic s [% ] 2008 2 130.01 3 8 .0 1 % 2009 1 419.65 -3 3 .3 5 % 2010 1 583.59 1 1 .5 5 % 2011 2 204.09 3 9 .1 8 %
fall of Y/Y dynamics of operating profit per company in 2011 comparing to the value in 2010

2 500 160% 140% 2 000 120% 100% 80% 60% 40% 1 000 20% 0%
500 -20% -40% 0 -60%
[thou RON]
1 500
Period
Y/Y dynamics of operating profit per profit-making company [%]
Gross profit per company [thou RON]

P eriod Value [thou RON] Y /Y dynamic s [% ] 2008 -190.98 -1 3 3 .7 5 % 2009 -108.94 -4 2 .9 6 % 2010 478.94 -5 3 9 .6 5 % 2011 557.30 1 6 .3 6 %
Y/Y dynamics of operating profit per profit-making company [%]
Gross profit per company [thou RON]

700 600 500 400 300% 200%
100% 0%
rise of Y/Y dynamics of operating profit per profit-making company in 2011 comparing to the value in 2010
[thou RON]
300 200 100 0

-100 -200 -300
-100% -200% -300% -400% -500% -600%
Period
Gross profit per company [thou RON] Y/Y dynamics of gross profit per company [%]
Y/Y dynamics of gross profit per company [%]
-12-
Gross profit per profit-making company [thou RON]

P eriod Value [thou RON] Y /Y dynamic s [% ] 2008 948.56 -5 .6 0 % 2009 652.77 -3 1 .1 8 % 2010 970.67 4 8 .7 0 % 2011 1 833.50 8 8 .8 9 %
rise of Y/Y dynamics of gross profit per company in 2011 comparing to the value in 2010

2 000 1 800 1 600 80% 1 400 120%
100%
[thou RON]
1 200 1 000 800 600
60%
40%
20%
0% 400 200 0 -20%
-40%
Period
Y/Y dynamics of gross profit per profit-making company [%]
Net profit per company [thou RON]

P eriod Value [thou RON] Y /Y dynamic s [% ] 2008 -293.33 -1 6 2 .0 3 % 2009 -183.21 -3 7 .5 4 % 2010 399.93 -3 1 8 .3 0 % 2011 413.44 3 .3 8 %
rise of Y/Y dynamics of gross profit per profit-making company in 2011 comparing to the value in 2010
Net profit per company [thou RON]

600 500 300%
400 300 100%
[thou RON]
200 100 0 -100 -200 -300 -400
0%
-100%
-200%
-300%
-400%
Period
Net profit per company [thou RON] Y/Y dynamics of net profit per company [%]
Y/Y dynamics of net profit per company [%]
200%
Y/Y dynamics of gross profit per profit-making company [%]
-13-
Net profit per profit-making company [thou RON]

P eriod Value [thou RON] Y /Y dynamic s [% ] 2008 821.75 -6 .2 4 % 2009 549.16 -3 3 .1 7 % 2010 879.15 6 0 .0 9 % 2011 1 620.04 8 4 .2 7 %
rise of Y/Y dynamics of net profit per company in 2011 comparing to the value in 2010
Net profit per profit-making company [thou RON]

1 800 120%
1 600 1 400
1 200
100% 80%
60%
1 000 800
600
40% 20%
0%
400
200
-20%
-40%
-60%
Period
Net profit per profit-making company [thou RON] Y/Y dynamics of net profit per profit-making company [%]
Profitability Ratios
Share of profit-making companies [%]
P eriod Value [%] Y /Y inc reas e [% ] 2008 68.25% -4 .0 5 % 2009 70.05% 1 .8 0 % 2010 72.86% 2 .8 1 % 2011 62.45% -1 0 .4 1 %
fall of share of profitmaking companies in 2011 comparing to the value in 2010

74% 72%
70% 68% 66%

64%
62% 60% 58%

56%
Period
Y/Y dynamics of net profit per profit-making company [%]
[thou RON]
-14-
Operating Sales Margin [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 5.96% -0 .3 2 % 2009 4.56% -1 .4 0 % 2010 4.51% -0 .0 5 % 2011 3.72% -0 .7 9 %
fall of operating sales margin in 2011 comparing to the value in 2010

7% 6% 5% 4% 3%
2%
1% 0%
Period
Net Sales Margin [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 -1.30% -4 .0 5 % 2009 -0.97% 0 .3 3 % 2010 1.69% 2 .6 6 % 2011 1.62% -0 .0 7 %
fall of net sales margin in 2011 comparing to the value in 2010

3% 3%
2%
2% 1% 1% 0% -1% -1% -2% -2%
Period
Return on Equity [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 -4.77% -1 3 .1 4 % 2009 -2.35% 2 .4 2 % 2010 4.65% 7 .0 0 % 2011 5.26% 0 .6 2 %
rise of return on equity in 2011 comparing to the value in 2010

10%
8%
6% 4% 2% 0% -2% -4% -6%
Period
-15-
Return on Assets [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 -1.40% -4 .0 5 % 2009 -0.90% 0 .5 0 % 2010 1.70% 2 .6 0 % 2011 1.76% 0 .0 5 %
rise of return on assets in 2011 comparing to the value in 2010

3% 3% 2% 2% 1% 1%
0% -1% -1% -2%
-2%
Period
Effective tax rate [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 13.37% 0 .5 9 % 2009 15.87% 2 .5 0 % 2010 10.59% -5 .2 8 % 2011 11.64% 1 .0 5 %
rise of effective tax rate in 2011 comparing to the value in 2010

18% 16%
14%
12% 10% 8% 6%
4%
2% 0%
Period
Liquidity Ratios
Current ratio [%]
P eriod Value [%] Y /Y inc reas e [% ] 2008 82.92% -5 .6 1 % 2009 94.76% 1 1 .8 4 % 2010 105.73% 1 0 .9 6 % 2011 107.17% 1 .4 4 %
rise of current ratio in 2011 comparing to the value in 2010
Current ratio [%]

120% 100% 80% 60% 40% 20% 0%
Period
-16-
Quick ratio [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 43.08% 0 .6 4 % 2009 52.40% 9 .3 2 % 2010 53.98% 1 .5 8 % 2011 51.09% -2 .8 9 %
fall of quick ratio in 2011 comparing to the value in 2010
Quick ratio [%]

60% 50% 40% 30% 20% 10% 0%
Period
Super quick ratio [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 7.64% 2 .3 1 % 2009 6.79% -0 .8 5 % 2010 8.51% 1 .7 2 % 2011 5.68% -2 .8 3 %
fall of super quick ratio in 2011 comparing to the value in 2010

9%
8% 7% 6% 5%
4%
3% 2% 1% 0%
Period
Receivables to liabilities ratio [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 38.07% 1 .1 6 % 2009 45.38% 7 .3 1 % 2010 45.44% 0 .0 6 % 2011 45.33% -0 .1 1 %
fall of receivables to liabilities ratio in 2011 comparing to the value in 2010

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
Period
-17-
Financial Cycles
Days of coverage for Cash & Equivalent [days]
P eriod Value [days] Y /Y inc reas e [days ] 2008 -37 -4 2009 -20 17 2010 -4 16 2011 3 7
rise of days of coverage for cash & equivalent in 2011 comparing to the value in 2010

5 0 -5 -10
-15
-20 -25 -30 -35 -40
Period
Days of coverage for receivables [days]

P eriod Value [days] Y /Y inc reas e [days ] 2008 64 -8 2009 75 11 2010 71 -4 2011 64 -7
fall of days of coverage for receivables in 2011 comparing to the value in 2010

76 74 72 70
68
66 64 62 60 58
Period
Days of coverage for inventories [days]

P eriod Value [days] Y /Y inc reas e [days ] 2008 67 -2 2 2009 70 3 2010 81 11 2011 81 0
stabilisation of days of coverage for inventories in 2011 comparing to the value in 2010

100
90 80 70 60 50 40 30 20 10 0
Period
-18-
Days of coverage for short term liabilities [days]

P eriod Value [days] Y /Y inc reas e [days ] 2008 168 -2 5 2009 165 -3 2010 156 -8 2011 142 -1 4
fall of days of coverage for short term liabilities in 2011 comparing to the value in 2010

250
200
150
100
50
Period
Financial Leverage Ratios

Debt to Equity ratio [%]
P eriod Value [%] Y /Y inc reas e [% ] 2008 53.91% 1 0 .2 2 % 2009 44.15% -9 .7 6 % 2010 45.70% 1 .5 5 % 2011 58.74% 1 3 .0 4 %
rise of debt to equity ratio in 2011 comparing to the value in 2010

70% 60% 50% 40% 30% 20% 10% 0%
Period
Equity to total assets ratio [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 29.26% -2 .4 9 % 2009 38.20% 8 .9 4 % 2010 36.67% -1 .5 2 % 2011 33.41% -3 .2 6 %
fall of equity to total assets ratio in 2011 comparing to the value in 2010

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
Period
-19-
Long-term liabilities to total liabilities ratio [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 15.78% 1 .9 0 % 2009 16.87% 1 .0 9 % 2010 16.76% -0 .1 1 % 2011 19.62% 2 .8 6 %
rise of long-term liabilities to total liabilities ratio in 2011 comparing to the value in 2010

25%
20%
15%
10%
5%
0%
Period
Debt ratio [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 65.77% -0 .2 4 % 2009 59.03% -6 .7 3 % 2010 60.64% 1 .6 0 % 2011 64.15% 3 .5 1 %
rise of debt ratio in 2011 comparing to the value in 2010
Debt ratio [%]

68%
66% 64% 62% 60%

58%
56% 54%
Period
Operating profit coverage [years]

P eriod Value [year] Y /Y inc reas e [year] 2008 7.03 -2 .0 1 2009 8.05 1 .0 2 2010 10.74 2 .7 0 2011 8.56 -2 .1 9
fall of operating profit coverage in 2011 comparing to the value in 2010
Operating profit coverage [years]

12.0 10.0 8.0 6.0 4.0 2.0 0.0
Period
-20-
Production Factors
Average employment per company [person]
P eriod Value [person] Y /Y dynamic s [% ] 2008 75 -1 1 .8 2 % 2009 78 3 .4 3 % 2010 27 -6 5 .4 9 % 2011 72 1 6 8 .4 0 %
rise of average employment per company in 2011 comparing to the value in 2010

90 80 70 60 200% 150% 100% 50% 0% -50% -100%
50 40 30 20 10 0
Y/Y dynamics of average employment per company [%]
Labour productivity [thou. RON/person]

P eriod Value [thou RON/person] Y /Y dynamic s [% ] 2008 297.99 4 2 .1 4 % 2009 256.72 -1 3 .8 5 % 2010 166.83 -3 5 .0 1 % 2011 415.09 1 4 8 .8 1 %
Y/Y dynamics of average employment per company [%]
[person]
rise of labour productivity in 2011 comparing to the value in 2010

450 400 200%
[thou RON/person]
350 300 250 200

150
150%
100%
50%
100 50 0
0%
-50%
Y/Y dynamics of labour productivity [%]
Labour cost as the share in total operating costs [%]

Y/Y dynamics of labour productivity [%]

12% 10% 8% 6% 4% 2%
fall of labour cost as the share in total operating costs in 2011 comparing to the value in 2010
0%
-21-
Fixed assets per employee [thou. RON/person]

P eriod Value [thou RON/person] Y /Y dynamic s [% ] 2008 158.73 3 8 .5 0 % 2009 163.01 2 .7 0 % 2010 90.62 -4 4 .4 1 % 2011 195.39 1 1 5 .6 2 %
rise of fixed assets per employee in 2011 comparing to the value in 2010

250 140% 120%
[thou RON/person]
200
100%
80%
150
60% 40%
100
20% 0%
50
-20% -40%
-60%
Y/Y dynamics of fixed assets per employee [%]
Labour intensity of production [%]

Y/Y dynamics of fixed assets per employee [%]
fall of labour intensity of production in 2011 comparing to the value in 2010

10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
Period
Material & energy intensity of production [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 58.17% -2 .1 8 % 2009 58.79% 0 .6 2 % 2010 58.95% 0 .1 7 % 2011 62.49% 3 .5 3 %
rise of material & energy intensity of production in 2011 comparing to the value in 2010

63% 62% 61% 60% 59% 58% 57% 56%
Period
-22-
Total assets turnover [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 106.99% 1 0 .0 7 % 2009 92.14% -1 4 .8 5 % 2010 100.81% 8 .6 7 % 2011 109.58% 8 .7 8 %
rise of total assets turnover in 2011 comparing to the value in 2010

115% 110% 105% 100% 95% 90% 85% 80%
Period
Fixed assets productivity [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 184.44% 1 .8 1 % 2009 157.15% -2 7 .3 0 % 2010 191.71% 3 4 .5 7 % 2011 211.91% 2 0 .2 0 %
rise of fixed assets productivity in 2011 comparing to the value in 2010

250%
200%
150%
100%
50%
0%
Period
Labour cost per employee [thou. RON/person]

P eriod Value [thou RON/person] Y /Y dynamic s [% ] 2008 21.64 2 2 .6 3 % 2009 24.01 1 0 .9 3 % 2010 15.46 -3 5 .6 0 % 2011 26.07 6 8 .6 3 %
rise of labour cost per employee in 2011 comparing to the value in 2010

30 80% 60% 40%
20%
25
20
15 0% 10 -20%
-40%
-60%
Y/Y dynamics of labour cost per employee [%]
Y/Y dynamics of labour cost per employee [%]
[thou RON/person]
-23-
Costs
Share of wages in total operating costs [%]
fall of share of wages in total operating costs in 2011 comparing to the value in 2010

9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
Period
Share of social contributions in total operating costs [%]

fall of share of social contributions in total operating costs in 2011 comparing to the value in 2010

3%
2%
2%
1%
1%
0%
Period
Share of external services in total operating cost [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 8.38% 0 .0 7 % 2009 9.75% 1 .3 7 % 2010 8.00% -1 .7 5 % 2011 7.48% -0 .5 2 %
fall of share of external services in total operating cost in 2011 comparing to the value in 2010

12%
10% 8%
6%
4% 2%
0%
Period
-24-
Share of material & energy used in total operating costs [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 60.86% -2 .2 8 % 2009 61.59% 0 .7 3 % 2010 61.74% 0 .1 5 % 2011 64.89% 3 .1 5 %

66% 65% 64% 63% 62% 61% 60% 59% 58%
rise of share of material & energy used in total operating costs in 2011 comparing to the value in 2010
Period
Share of taxes & fees in total operating costs [%]

P eriod Value [%] Y /Y inc reas e [% ] 2008 0.56% 0 .0 0 % 2009 0.62% 0 .0 6 % 2010 0.46% -0 .1 6 % 2011 0.39% -0 .0 7 %
fall of share of taxes & fees in total operating costs in 2011 comparing to the value in 2010

1% 1% 1% 0% 0% 0% 0% 0%
Period
Costs structure [%] Period

Wages [% ] Soc ial c ontributions [% ] C os t of external s ervic es [% ] M aterial and energy c os ts [% ] T axes and fees [% ] O ther c os ts [% ] 2009 7 .7 2 % 2 .0 8 % 9 .7 5 % 6 1 .5 9 % 0 .6 2 % 1 8 .2 5 % 2010 6 .0 9 % 1 .6 2 % 8 .0 0 % 6 1 .7 4 % 0 .4 6 % 2 2 .0 9 % 2011 5 .1 3 % 1 .3 9 % 7 .4 8 % 6 4 .8 9 % 0 .3 9 % 2 0 .7 2 %
material and energy costs dominate in the cost structure
-25-
Costs structure [%]

100%
80%
60%
40%
20%
0%
2009
2010 Period
2011
Wages [%] Material and energy costs [%]
Social contributions [%] Taxes and fees [%]
Cost of external services [%] Other costs [%]
Costs structure [%] (2011)
1.4% 20.7% 0.4% 5.1% 7.5%
64.9%
Wages [%] Material and energy costs [%]
Social contributions [%] Taxes and fees [%]
Cost of external services [%] Other costs [%]
Structure of Current Assets

Current assets structure [%] Period
I nventories [% ] Short-term rec eivables [% ] C as h and equivalent [% ] O ther c urrent as s ets [% ] 2009 4 4 .6 7 % 4 7 .9 3 % 7 .1 6 % 0 .2 4 % 2010 4 8 .9 5 % 4 2 .9 8 % 8 .0 5 % 0 .0 3 % 2011 5 2 .3 2 % 4 2 .3 0 % 5 .3 0 % 0 .0 7 %
inventories dominate in the current assets structure
-26-
Current assets structure [%]

100%
80%
60%
40%
20%
0%
2009
2010 Period
2011
Inventories [%]
Short-term receivables [%]
Cash and equivalent [%]
Other current assets [%]
Current assets structure [%] (2011)
0.1% 5.3%
42.3%
52.3%
Inventories [%]
Short-term receivables [%]
Cash and equivalent [%]
Other current assets [%]
-27-
DuPonts Pyramid
Return on equity ROE = ROA * leverage ROE
2008
2009
2010
2011
-4.8%
-2.4%
4.6%
5.3%
Return on assets ROA = ROS * TAT company 2008 2009 2010 2011 ROA
leverage = Assets per
*
3.42 2.62 2.73 2.99
company / Equity per Leverage
2008
2009
2010
2011
-1.4%
-0.9%
1.7%
1.8%
Return on net sales TAT = Net revenue per company / Assets per company 2008 2009 2010 2011 TAT
Assets turnover
ROS = Net profit per company
ROS
/ Net revenue per company
*
1.07 0.92 1.01 1.10
2008
2009
2010
2011
-1.3%
-1.0%
1.7%
1.6%
Net revenue per company 2009 2010 2011 [thou RON]
Net Assets per company (**) [thou RON]
Net profit per company (*)
profit
Net revenue per company (*)
Assets per company 2008 2009 2010 2011
Equity per company (**) [thou RON]
Equity per company 2008 2009 2010 2011
[thou RON]
per
company
/
18 796 23 651 25 761
/
21 004 20 399 23 462 23 508
2008
2009
2010
2011
2008
-293
-183
400
413
22 473
6 146
7 792
8 605
7 854
(*) Net profit per company or net revenue per company from a given year
(**) Value of assets per company or equity per company from the end of year
-28-
Companies from the Sector
Top Players from the Sector

Main indicators
Effective Net Profit [mn RON] of net profit ent of revenue dynamics [mn RON] [mn RON] Equity ROE leverage ROA TAT ROS Assets Employm increase Y/Y tax rate cost cutting leverage increase improve of tax shield
Data from 2011

DuPont pyramid
Public
Strategic conclusions Potential for:
com-
pany
*)
Market
Net
Y/Y
share
Revenue
dynamics
Share of net revenues of top 10 companies in the sector 54.11%

106.98 1798.96% 345.43 811.55 473 30.97% 2.35 13.18% 0.96 13.69% 7.26%
[mn RON]
of net
revenues
Expur
12.80%
781.21
20.44%
++ +
o +
+ o
o ++
Prutul
2.36 -58.87% 67.93 358.68 416 3.48% 5.28 0.66% 1.37 0.48%
8.03%
489.98
39.35%
31.05%
Titan SA (PANTELIMON)
8.29 2282.62% 137.14 364.09 872 6.04% 2.65 2.28% 0.93
5.54%
338.27
29.47%
2.45%
15.49%
++
-0.91%
+ o ++
+ +
Cargill Oils
-2.84 -331.25% 49.44 122.16 277 -5.74% 2.47 -2.32%
5.14%
313.66
30.27%
2.57
Boromir Ind
4.97 13.40% 39.49 141.98 827 12.59% 3.59
4.34%
264.81
22.49%
3.50%
1.87
1.88%
17.54%
+
1.93 3.43% 16.81%
+ o o
o ++
+ +
Argus (CONSTANTA)
7.93 -44.60% 98.54 119.56 291 8.05% 1.21
3.78%
231.04
6.24%
6.63%

0.20 -36.81% 57.14 82.55 495 0.35% 1.44 0.24% 2.80 0.09% 71.48%
Sapte Spice
3.78%
230.83
20.19%
o
2.02 -2.01% 1.16 -1.73%
++ + ++
++ +
++
Dobrogea Grup
-3.98 -181.20% 98.17 198.63 845
3.77%
229.89
6.79%
-4.06%
Ardealul (CAREI)
29.74 3.00% 173.49 230.23
3.64%
222.34
47.32%
282
17.14%
1.33
12.92%
0.97
13.38%
15.84%
+
149 4.04% 5.70 0.71% 0.69 1.03% 30.42%
o ++ +
++ o
o ++
Sam Mills
2.09 54.71% 51.61
3.31%
201.78
46.05%
294.44
15.57 349.99% 111.84 272.39 493 7.29% 2.81 3.58% 1.52 3.38% 25.74%
Average
5.41%
330.38
26.86%
+
In duPont Pyramid stock variables are not averaged over time for calculation purposes due to lack of these data
o
++ + o
+
High potential Medium potential Low potential
The data for 2010 and 2011 are from Creditinfo Romania and CCIR. Hence, the quality of presented data is strictly limited by the quality of data in Creditinfo Romania & CCIR. *) Public companies represents only these PLC that are listed on 1st and 2nd tier of BVB or Rasdaq
-29-
Listed companies from the sector (BVB/Rasdaq; 1st and 2nd tier)
Financial Indicators (2011) Market Indicators (31/12/2012)
Average daily Effective Book Value [mn RON] RON] (y/y) ROE leverage ROA TAT ROS [thou P P/E P/BV [mn RON] %P L tax rate value Liquidity last year volume s market U L U Company'
Data from 2011

DuPont's pyramid Price Beta () Market multipliers
Main indicators
Required return rate
Market
Market
Net
share
Revenue
Net Profit
[mn RON]
[mn RON]
Titan SA (PANTELIMON)
137.14 6.04% 2.655 2.28% 0.929 2.45% 15.49%
BVB
6.81%
338.27
8.29
Argus (CONSTANTA)
98.54 8.05% 1.213 6.63% 1.932 3.43% 16.81%
RASDAQ
4.65%
231.04
7.93
BOROMIR PROD
128.79 0.91% 1.231 0.74% 0.938 0.79% 44.45%
BVB
2.99%
148.72
1.18
Moara Cibin
51.27 4.19% 1.731 2.42% 1.159 2.09% 16.54%
RASDAQ
2.07%
102.86
2.15
Morarit Panificatie Roman

4.99 7.10% 1.578 4.50% 1.391 3.23% 22.12%
RASDAQ
0.22%
10.94
0.35
Spicul (CONSTANTA)
-0.17 35.85% -0.889 -40.31% 1.223 -32.97%
RASDAQ
0.00%
0.19
-0.06

+++ ++ + - high liquidity - average liquidity - low liquidity
Morarit - Service
0.20 -70.24% 2.000 -35.11% 0.036 -964.08%
RASDAQ
0.00%
0.01
-0.14
1.360 -8.41% 1.087 -140.72% 23.08%
Average
60.11 -1.16%
2.39%
118.86
2.81
-30-
Mergers and Acquisitions

Last mergers
Seller's Name Buyer's Name Transaction date Taken over company Taking over company
The largest buy/sell offers
Value of a deal [mn USD] Status of a deal Alimenta Group Sofiproteol May-08,2012 Prio Extractie SRL Bunge Ltd
Transaction date
Target Company
105.52
Sep-30,2010
Expur Urziceni
65.13
May-08,2012
Prio Extractie SRL Prio Foods Bunge Ltd
Sep-30,2010
Expur Urziceni
Sofiproteol
46.49 (completed) Loulis Mills S.A.
Apr-04,2007
Titan SA (formerly Loulis SA) Apr-29,2010 Leipnik-Lundenburger Invest Beteiligungs AG
East Point Holdings Limited
Darby Overseas Investments Ltd, Reconstruction Capital II (RC2) Inedit Food Dr Oetker
Dec-07,2007 (completed)
Apr-04,2007 (completed)
Titan SA (formerly Loulis SA)
Leipnik-Lundenburger Invest Beteiligungs AG
The largest buy/sell offers refer to the transactions affecting analysed sector. The data source is ISI Dealwatch
The last mergers refer to the transactions affecting analysed sector. The data source is ISI Dealwatch
-31-
Key Concepts
Definitions of Indices
Definition of index
Number of companies
Number of reporting companies Net revenue ----------------------------------------Number of companies Total operating costs --------------------------------------Number of companies Operating profit - Operating loss --------------------------------------Number of companies Operating profit --------------------------------------------Number of profit-making companies Gross profit - Gross loss --------------------------------------Number of companies Gross profit --------------------------------------------Number of profit-making companies Net profit - Net loss --------------------------------------Number of companies Net profit --------------------------------------------Number of profit-making companies Operating profit - Operating loss ------------------------------------Net revenue Net profit - Net loss -----------------------------------Net revenue Net profit - Net loss -----------------------------------Equity Net profit - Net loss -----------------------------------Total assets Gross profit - (Net profit - Net loss) ------------------------------------------Gross profit Number of profit making companies --------------------------------------------Number of companies Current assets -----------------------Short-term liabilities Current assets - Inventory ------------------------------Short-term liabilities Cash & Equivalent -----------------------------------Short-term liabilities Receivables -----------------------Short-term liabilities (Receivables + Inventories - Short term liabilities) * 360 -----------------------------------------------------------------Net revenue of goods and services Receivables * 360 -----------------------------------Net revenue of goods and services Inventories * 360 -------------------------------------Net revenue of goods and services Short term liabilities * 360 -------------------------------------Net revenue of goods and services Long-term liabilities ----------------------Equity Equity -------------Total assets Long-term liabilities ----------------------Total assets Total liabilities ----------------Total assets V V --V V --V V --V V --V V --V V --V V --V V --V V --V V --V V --V V --V V --V V ----V V --V V --V V --V V --V V --V V --V V --V V --V V --V V --V V --V V --V V ----V
Net revenue per company [mn RON] Total operating cost per company [mn RON] (including depreciation and amortization)
General indices Profitability ratios Liquidity ratios Financial cycles Financial leverage ratios
Operating profit (EBIT) per company [mn RON]
Operating profit (EBIT) per profit-making company [mn RON]
Gross profit per company [mn RON]
Gross profit per profit-making company [mn RON]
Net profit per company [mn RON]
Net profit per profit-making company [mn RON]
Current ratio [%]
Quick ratio [%]
Debt ratio [%]
Total liabilities Operating profit coverage [years] ---------------------------------------ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-09-25 08:49:24 EDT. DownloadPDF. Operating profit - Operating loss
by ro-kpmg6 VDownloaded - Value for a given year from 62.217.241.204 at 2013-09-25 08:49:24 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited.
-32-
Definition of index
Number of employees -------------------------Number of companies Net revenue --------------Employment Wages + Social insurance & other contributions to employees ---------------------------------------------------------------------Total operating costs Fixed assets -----------------Employment Wages + Social insurance & other contributions to employees ---------------------------------------------------------------------Net revenue Material & energy costs ---------------------------Net revenue Net revenue -----------------Total assets Net revenue -----------------Fixed assets Wages + Social insurance & other contributions to employees ---------------------------------------------------------------------Employment Wages ------------------------Total operating costs Social insurance and other contributions to employees -------------------------------------------------------------Total operating costs External services ------------------------Total operating costs Material & energy costs ----------------------------Total operating costs Taxes & fees ------------------------Total operating costs V --V V --V V --V V --V V --V V --V V --V V --V V ----V V --V V --V V --V V --V V --V
Production factors Costs

V - Value for a given year
-33-
Definitions of Selected Concepts

EconTrends for Romania are based to large extent on the structure of the North American Industry Classification System (NAICS). Analyses made for respective industry divisions and groups are consistent with this classification. However the used system of industry classification is not fully compatible with the Romanian Classification of Activities due to Romanian statistics - specific factors. Moreover the reports are based on the bottom-up aggregation of individual companies financial data from the Creditinfo Romania and CCIR (Chamber of Commerce and Industry), which provides the financials not for all, but for all major companies from the sector. Hence the report covers not the full sector but only its major part.
Forecasting models
Forecasting models used in EconTrends have a hierarchical structure. The first layer consists of models that transmit behavior of macroeconomic variables like nominal GDP growth, increases in prices to the behaviors of financial parameters like net sales per company and EBIT margin in all analyzed economic divisions. EBIT margin should be understood as earnings before interest and taxes. The next layer of models translates the behavior of the above parameters in economic divisions into the groups within them, than into classess within groups and subclassess within classess. The econometric models that are used in respective layers have a linear structure and belong to a well known group of regression models.
Risk-profitability maps
Risk-profitability maps show the location of sectors depending on the value of profitability and risk they achieve. Sectors singled out by being encircled by a red ring are most useful efficient for investors, due to the relatively highest return at the lowest variability of profit (relatively high value of the Sharps index). On the basis of the coordinate values of efficient sectors, the preferences of investors on the market are shown by a grey dotted line visible on the graphs this is a level line of the linear function of utility for investors (Investors Utility Function). The level line shows preferences of the majority of investors with regard to achieved profitability at a given risk. Sectors, which are placed above the linear function of usefulness are preferred by investors due to the possibility of achieving a high profitability, at a particular level of risk. Sectors lying below the level line are not as attractive for investors, due to the relatively high variability in profit as against their profitability.
The forces map
The forces map shows decompositions of the profitability index into particular driving forces. The idea of the strengths map is to show the effect of particular variables on the dynamics of profit both in current and forecasted situation.
Concentration measures Several concentration measures are used to examine the degree of the market power concentration within the analyzed sectors. The are Herfindahl-Hirschman Index (known HHI), is apower measure of the size Several concentration measures used to examine the degree of as the market concentration of firms in relationship to the industry and an indicator of the amount of competition among them. It is within the analyzed sectors. defined as the sum of the squares of the market shares of each individual firm: ie the average market Herfindahl-Hirschman Index share, weighted by market share. As such, it can range from 0 to 10,000 moving from a very large amount of very small firms to (known a single producer. Decreases in the Herfindahl to index The Herfindahl-Hirschman Index as monopolistic HHI), is a measure of the size of firms in relationship the generally indicate a loss of powerof and an increase in competition, whereas imply industry and an indicator ofmarket the amount competition among them. It is defined increases as the sum of the the opposite. inof turn, isindividual a graph showing theaverage proportion of the distribution assumed by squares ofThe the Lorenz market curve shares each firm: ie the market share, weighted by market the bottom % market It 10,000 is used moving to represent shares distribution, it shows share. As such, it can share range values. from 0 to from amarket very large amount of very where small firms to a for themonopolistic bottom x% of companies in the sector, percentage of the indicate market share have. single producer. Decreases in the what Herfindahl index y% generally a lossthey of market The percentage of companies is plotted on the x-axis, the percentage of market share on the y-axis. power and an increase in competition, whereas increases imply the opposite. It is considered it to be a measure of inequality of the market shares within the given sector. The Gini coefficient is a measure of statistical dispersion in the market shares defined as the field between the Lorenz Curve diagonal and the Lorentz curve. It is defined as a ratio with values between 0 and 1. A low Gini The Lorenz indicates curve in turn, a graph showing the proportion of Gini the distribution theunequal bottom coefficient moreisequal market shares, while a high coefficient assumed indicates by more % market share values. It is used to represent market shares distribution, where it shows the distribution. 0 corresponds to perfect equality (all companies having exactly the same market for share) bottom x% of companies in the sector, what percentage y% of the market share they have. The and 1 corresponds to perfect inequality (where one monopolist has all the market share, while percentage of has companies is plotted on the x-axis, the percentage of market share on the y-axis. It is everyone else zero share in the market). considered it to be a measure of inequality of the market shares within the given sector.
-34-
Gini coefficient
The Gini coefficient is a measure of statistical dispersion in the market shares defined as the field between the diagonal and the Lorentz curve. It is defined as a ratio with values between 0 and 1. A low Gini coefficient indicates more equal market shares, while a high Gini coefficient indicates more unequal distribution. 0 corresponds to perfect equality (all companies having exactly the same market share) and 1 corresponds to perfect inequality (where one monopolist has all the market share, while everyone else has zero share in the market).
Y/Y Increase, Y/Y Dynamics
Y/Y Increase, Y/Y Dynamics. Increases are calculated as absolute differences with respect to the preceding year (Y/Y). Dynamics are calculated as relative [%] differences with respect to the preceding year (Y/Y). Forecasts Forecasts presented in EconTrends for Romania relate to a period of two years ahead in relation to the end of the time period for which statistical data are available.
Distributions of Financials
Distributions of Financials present critical values of the distributions of various financials in the analyzed sector. The presented critical values represent quartiles of the empirical distribution i.e. they are calculated for 20%, 40%, 60% and 80% of the total population of companies from the given sector. These distributions make possible easy comparison of an analyzed company to other companies in the sector, looking at it from various financial angles.
DuPont Pyramid
DuPont Pyramid is a very useful tool to decompose Return on Equity (ROA) into various ratios like: Return on Assets (ROA), Return on Sales (ROS) and Total Assets Turnover (TAT). It enables easy drawing of conclusions about the efficiency of an analyzed company in various areas of its activity.
Market multiples (P/E, P/BV)
Market multiples (P/E, P/BV) - are widely used for the valuation purposes. Price to Earnings (P/E) is calculated by dividing closury company's capitalisation in the year after analysed year by the earnings (net profits) from the last year. For the calculation of Price to Book Value (P/BV) the ending year book value is taken.
Betas and Required Rates of Return
Betas and Required Rates of Return - are calculated for listed companies under CAPM model.
L
U
Cov R i , R M Var R M
- Leveraged Beta,
L
1 1 D E
- Unleveraged Beta, - Required Rate of Return, where:
Ri R f RM R f
R i
Ri
- rate of return from investments in shares of an analysed company,
R M - 5Y expected rate of return of the stock market index (BET), R f - risk-free rate of return (of 12-month average Bucharest Interbank Bid Rate), D - debt to equity ratio, E
- effective tax rate.
- required (by investors) rate of return from investments in the shares of an analysed company; i.e. the expected rate of return when the market stays in equilibrium under CAPM assumptions, M - 5Y rate of return of a stock market index (BET),
Liquidity
Liquidity (of public company) - ranked accordingly to the averaged daily shares' turnover from the last year
-35-

Grain and Oilseed Milling (3112) - 2011

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Grain and Oilseed Milling (3112) - 2011

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Grain and Oilseed Milling

ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-09-25 08:49:24 EDT. DownloadPDF.

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Grain and O ils eed M illing

Grain and O ils eed M illing

Only the subclasses marked by an arrow are covered by EconTrends reports.

Grain and O ils eed M illing

2009 97.4 93.4 105.6 101.9 3.05

2010 104.3 98.3 106.1 106.3 3.18

2011 110.7 102.5 105.8 108.9 3.05

2012 106.5 100.9 103.3 106.2 3.47

2013 103.8 101.8 103.3 104.5 3.35

Nominal GDP Growth

106 104 102 100

120 115 110 105 100 95 90

Grain and O ils eed M illing

Analysis of Investment Attractiveness

Driving Forces of Attractiveness

"+" "-" "o"

Net revenue per company - Y/Y dynamics

Net revenue per company - Y/Y dynamics

30% 20% 20%

Profitability index - Y/Y dynamics

Grain and O ils eed M illing

EBIT Margin - Y/Y dynamics

EBIT Margin - Y/Y dynamics

-10% -20% -20%

Profitability index - Y/Y dynamics

Grain and O ils eed M illing

risk - profitability map (current situation)

subclasses belonging to selected class Investors' utility function

Selected sector (Class): Grain and Oilseed Milling

Risk - Profitability Map (current situation) Zoom

All sectors subclasses belonging to selected class Investors' utility function

Grain and O ils eed M illing

Risk - Profitability Map (forecasted situation)

risk - profitability map (forecasted situation)

0.0 0.0 0.5 1.0 1.5 2.0 2.5

subclasses belonging to selected class Investors' utility function

Selected sector (Class): Grain and Oilseed Milling

Risk - Profitability Map (forecasted situation) Zoom

All sectors subclasses belonging to selected class Investors' utility function

Grain and O ils eed M illing

Concentration in the Sector

Perfect Equality Line

Gini Coefficient 86.09%

Perfect Inequality Line

Cumulative share of companies from lower market share

Market share of top companies in the sector

Cumulative market share

Grain and O ils eed M illing

Analysis of Financial Ratios

DIST RIBUT ION OF PA RA ME T E RS (The distribution of financial indicators in the sector)

Financial Leverage Ratios

Grain and O ils eed M illing

Net revenue per company [thou RON]

Total operating cost per company [thou RON]

Net revenue & total operating costs per company

20 000 15 000 10 000 5 000 0

Net revenue per company [thou RON]

Total operating cost per company [thou RON]

Operating profit per company [thou RON]

Operating profit per company [thou RON]