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Trigon Agri: Trigon Agri A/S: 4Q 2016 Interim Report

2016 Highlights

· Sale of 10% Trigon Agri stake in Trigon Dairy Farming Estonia for

· Restructuring of the senior management team, and cancelation of
management fee

· Sale of 100% Rostov farming cluster for the price of €13.3m,
results in repaid debt and finances Bond interest

· Rostov sale results in a one-off loss of €23.5m, mostly due to
exchange rate differences

· Harvest completed with reasonable winter crop yields and strong
summer crop results

· Russian Dairy land bank revalued, one-off loss of €5.5m included
in the income statement

· Strong EBITDA in Ukraine €10.1m, as a result of a good harvest,
despite a low commodity price environment and changes in the Ukraine
VAT regime

Q4 Highlights

· Full Bond Debt for Equity swap completed in December 2016
· Overall borrowings at year end reduced to €10.1m against €62.3m at
the end of 2015

· Ukrainian banks agree provision of working capital loans for the
2017 cropping year

· Trigon Agri ends the year with a strong positive equity position
€30.4m against €0.5m at the end of 2015

· 32 thousand hectares of Winter crops sown, to date in good

CEO Comments

2016 has been a turning point for the company. Restructuring of the
management, the debt, and sales of non-core assets have had the
accumulated result of putting the company in a strong position
financially to move forward and focus on achieving solid production
and financial results. It has also substantially lowered the overall
cost base of the company and we now have a smaller but more effective

The 2016 result is inevitably overshadowed by the large losses that
have been taken as a result of the divestment program and revaluation
of the Russian Dairy land bank. Partly due to substantial currency
translation losses, relating to the Rostov transaction and part due
to revaluing Dairy landbank. This lead to several one-off losses
which have severely reduced the overall financial result, which masks
the stable profitable EBITDA result of €10.1m from the Ukrainian
farming businesses.

The debt to equity swap of the SEK 350 million Bonds has been pivotal
in the survival of the company and this was completed in December,
further strengthening the balance sheet. The previous bond holders
are now our major shareholders and are taking an active interest in
the development of the company, by assisting the company via the
provision of a standby credit facility, which greatly helps with the
situation still active in Ukraine with regards to Capital controls.
As reported, warrants were offered to the original shareholders, and
95% of all warrants have been subscribed for.

Looking forward to 2017, we established 32 thousand hectares of winter
crops, namely Wheat, Barley and Oilseed Rape, to date these are in a
good condition. Snow cover at the time of writing is excellent with
up to a meter deep in the Kharkov region, this giving a good
protection against the winter conditions.

The Estonian milk price has during 2016 remained well below the cost
of production at or around the 20 eurocent / litre. Positive news is
that due to a now European shortage of raw milk, caused primarily
through cow numbers falling as producers left the industry, there has
been a dramatic increase in the price to circa 35 eurocent / litre,
this above the cost of production.

Telephone conference details:

A telephone conference will be held today, on 28th February, 2017 at
10:00 CET.


Simon Boughton, the CEO, and Konstantin Kotivnenko, the Executive
Board member, will present and comment upon the results. There will
be an opportunity to ask questions.

To participate in the telephone conference, please call one of the
following numbers:

DK: +45 35 445 575
FI: +358 981 710 493
UK: +442 030 089 808
NO: +47 23 500 254
SE: +46 856 642 690

The presentation material will be available on
( before
the telephone conference starts. A recording of the telephone
conference will be available afterwards on

Investor enquiries

Mr. Simon Boughton, CEO of Trigon Agri A/S

Tel: +372 6191 500, E-mail:

About Trigon Agri A/S

Trigon Agri A/S is an integrated soft commodities production, storage
and trading company with operations in Ukraine, Russia and Estonia.
Trigon Agri A/S shares are traded on the main market of Nasdaq

For subscription to Company announcements please contact us:

If you do not want to receive Trigon Agri A/S press releases
automatically in the future, please send an e-mail to the following

This information is information that Trigon Agri A/S is obliged to
make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of the
contact person set out above, at 08:00 CET on 28th February 2017.


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