VITAL FORCE

ANNUAL REPORT

This ROS AGRO PLC Annual Report 2021 (the "Report") contains information about the performance
of Rusagro Group (the "Company" or "Rusagro") for the reporting period from 1 January 2021 to
31December 2021. This Report is published on an annual basis, the last one being prepared in March
2021. The Report is a part of Rusagro's Integrated Annual Report 2021, which consists of the Company's
Annual Report and ESG Report.
Material subjects
The Report contains information on
Rusagro's progress on its medium-term strategy,
the operating and financial performance of its
business segments, as well as the status and
changes in the Company's corporate governance
and capital structure.
Non-financial results are presented in the
context of social, environmental and corporate
governance factors under the Company's ESG
Report.
Boundaries
The operating and financial performance of ROS AGRO PLC (parent
company) and its subsidiaries, together referred to as Rusagro Group, is pre-
sented in the Report in line with International Financial Reporting Standards
(IFRS) consolidated financial statements.
Standards
The Report was modified from the management accounts of Rusagro and
the consolidated financial statements for 2021. The consolidated finan-
cial statements of the Company are IFRS-compliant, as adopted by the
European Union and the requirements of Section 113 of the Companies Law
of the Republic of Cyprus.
The Report was aligned with the requirements of the following documents:
• The London Stock Exchange Listing Rules;
• The UK Listing Authority's Disclosure and Transparency Rules;
• The Moscow Exchange Listing Rules.
Audit
The IFRS consolidated financial statements of ROS AGRO PLC for 2021 was
audited by KPMG Limited Chartered Accountants.
Approval of the Report
This Report was pre-approved by the Board of Directors of ROS AGRO PLC
on 25 February 2022 and then approved by the General Meeting of Share-
holders of ROS AGRO PLC on 1 April 2022.
About the Report
Disclaimer
The Report contains estimations or forward-looking statements regarding
operating, financial, economic, social, environmental and other Rusagro's
performance indicators. Actual events or results presented in the subse-
quent reports may vary materially from those expressed in the estimations
and forward-looking statements due to various reasons, in particular the
changing market situation and other direct risks to ROS AGRO PLC and
its subsidiaries. The Company assumes no responsibility or liability for any
losses or damages incurred by individuals or entities through their reliance
on the forward-looking statements. Any of such statements represent one of
the many possible scenarios and should not be viewed as the most probable
scenario.
In addition to the official information on the activities of Rusagro, the
Report contains data obtained from third parties and sources that Rusagro
considers to be trustworthy. This being said, the Company does not guaran-
tee the accuracy of such information, since it may be abridged or incomplete.
Presentation of numerical data
Since some indicators and percentages in the tables, figures and texts of the
Report were rounded to the nearest whole number or the nearest decimal
place, the sum of the rounded values may not fully match the totals. Further,
some percentages contained in the tables and figures, as well as in the
texts of the Report were derived from on the pre-rounded indicators and
may therefore not fully match the percentages calculated with the rounded
values.
Previous annual reports are
available on the Company's website
The Company's ESG Report
for 2021 is available on the
Company's website
Questions and requests from interested
parties can be sent to ir@rusagroroup.ru
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

Content
Interactive
version
3
ABOUT RUSAGRO
4 Rusagro’s history
6 Highlights of 2021
12 Key results for 2021
18 Business model
20 Geographic footprint
22 Sales geography
24 Sustainable development
26 IT and innovations
28 Corporate governance
29 Legal structure
141
APPENDICES
142 ROS AGRO PLC International Financial
Reporting Standards Consolidated
Financial Statements and Independent
Auditors’ Report 31 December 2021
185 Contact information
30
STRATEGIC REPORT
31 Statement by the Chairman of the Board
ofDirectors ofROS AGRO PLC
33 Statement bythe CEO of Rusagro Group
ofCompanies
35 Development strategy
43
REVIEW OF RUSAGRO'S BUSINESS
RESULTS FOR2021
AGRICULTURE BUSINESS
45 Overview of the Russian
agricultural market in2021
51 Rusagro's Agriculture Business
results in 2021
OIL AND FATS BUSINESS
61 Overview of the Russian oil and
fats products market in 2021
71 Results of Rusagro’s Oil and Fats
Business in 2021
MEAT BUSINESS
82 Overview of the Russian pork
market in 2021
86 Results of Rusagro’s Meat
Business in 2021
SUGAR BUSINESS
96 Overview of the Russian sugar
market in 2021
100 Results of Rusagro’s Sugar
Business in 2021
108
CONSOLIDATED FINANCIAL
RESULTS
109 Financial results review
121
CORPORATE GOVERNANCE
122 Corporate governance system
131 Share capital and securities
133 Shareholder and investor relations
138 Risk management
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

FRESH ACHIEVEMENTS

01
ABOUT
RUSAGRO
ANNUAL REPORT 2021
STRATEGIC
REPORT
02
REVIEW OF RUSAGRO'S
BUSINESS RESULTS FOR 2021
03
CONSOLIDATED
FINANCIAL RESULTS
04
CORPORATE
GOVERNANCE
05
APPENDICES
06
4 Rusagro’s history
6 Highlights of 2021
12 Key results for 2021
18 Business model
20 Geographic footprint
22 Sales geography
24 Sustainable development
26 IT and innovations
28 Corporate governance
29 Legal structure
RUSAGROGROUP.RU/EN

‘97
‘98 ‘99 ‘00 ‘01 ‘02
‘03
‘04 ‘05 ‘06 ‘07
‘08
‘09
Rusagro’s history
The history of Rusagro began in 1995 with sugar imports to Russia. Over time,
theCompany acquired several sugar and fat-and-oil plants, elevators, and also put
together its own land bank. LLC Rusagro Group of Companies was established in 2005.
1997-2002
Launching the Sugar
and Agriculture Businesses
Acquiring the first sugar plants and
launching the sugar production line
intheBelgorod Region.
Establishing Rusagro Group
ofCompanies in 2005.
Expanding the Sugar Segment
by acquiring two sugar plants
in the Belgorod and Tambov
Regions.
Launching the first retail sugar
brand – Chaikofsky.
Launching the Mon Cafe
andBrauni sugar brands.
Purchasing the fisrt oil and
fats production asset in
Yekaterinburg.
Expanding the land bank
to 380 ths ha.
Opening the pork production
inthe Belgorod Region.
Establishing our own land bank
fortheproduction of sugar beets
andgraincrops.
Purchasing elevators for storage
andtradeofgrains.
2003-2007
Launching the Oil and Fats Business
and introducing thefirst retail brand
2008-2010
Launching
theMeat Business
and expanding
theSugar Business
Rusagro
Sugar Business
Agriculture Business
Oil and Fats Business
Meat Business
Dairy Products Business
4
About Rusagro / HISTORY
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

‘10
‘11
‘12 ‘13
‘14
‘15
‘16
‘17
‘18
‘19 ‘20
Conducting an initial
public offering (IPO) of
GDRs ontheLondon Stock
Exchange(LSE) and raising
USD300mn in 2011.
Listing the
Company's
global depositary
receipts (GDRs)
ontheMICEX
in2014.
Conducting
asecondary public
offering (SPO)
ofGDRs on the
LSE and raising
USD250mn in 2016.
Including GDRs in the MSCI
Russia Small Cap Index in 2020.
Approving the dividend policy. Modernising
sugar plants
andincreasing
thecapacity
of pulp drying
facilities.
Acquiring three sugar
plants in the Kursk
and Orel Regions,
a cereal processing
plant, and a land
bank from Razgulay.
Exporting products to 29 countries.
Making the first deliveries of pulp
and resuming sales of consumer
margarine to China.
Putting a new packaging line
into production and launching
the Russkii Sakhar brand.
Expanding the land
bank to 504 ths ha.
Launching
thefirst molasses
desugarisation
facility.
Launching the second molasses
desugarisation facility in 2019.
Expanding the land bank
to 463 ths ha.
Modernising the oil
extraction plant.
Expanding the land
bank to 665 ths ha.
Exporting products
to 34 countries.
Acquiring an oil extraction
plant in the Samara Region
in2011.
Launching
aslaughterhouse
inthe Tambov
Region in 2015.
Launching the first
retail meat products
brand – Slovo
Myasnika (Butcher’s
Word) in 2016.
Exporting products
to11countries. Making
thefirst shipments of maize
andsoybeans to China.
Acquiring a right to purchase the
majority interest of the company that
owns Solnechnye Produkty (Solar
Products) holding in 2018.
Launching a packaged vegetable
oil plant in the Samara Region
andlaunching a mayonnaise plant
inAtkarsk.
Acquiring 100% of KapitalAgro
in 2018 and 22.5% in Agro-
Belogorie Group in 2019 –
producers of pork products in the
Belgorod Region.
Completing the construction
of a grain elevator and starting
deliveries of sows to a breeding
farm in the Primorye Territory.
Exporting products
to 10 countries.
Launching the Dairy Products
Business for the production
of cheeses, butter, and whey
powder in 2018.
Making the first delivery of whey
powder to China.
Launching pig farms
intheTambov Region in 2013.
2011-2013
Initial Public Offering
(IPO) and purchasing
ofthe first oil
extraction plant
2014-2015
Starting floating
on the Moscow
Stock Exchange
and launching
a slaughtering
sector
2016-2017
Closing
theRazgulay
deal
andSecondary
Public Offering
(SPO)
2018-2020
Expanding
business segments
and developing exports
5
About Rusagro / HISTORY
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

Highlights
Share capital
Acquiring Company's GDRs by a member of
ROS AGRO PLC Board of Directors
Maxim Basov, a member of the Board of
Directors of ROS AGRO PLC and CEO of
Rusagro Group LLC, bought 58,000 GDRs
of ROS AGRO PLC in March 2021. As a
result, his stake increased from 7.50% to
7.54% excluding treasury shares.
Publishing the first online version of the
annual report
Rusagro published an online version of the
2020 Annual Report in April 2021. The new
report format is meant to improve the user
experience.
01
02
COMPANY-WIDE EVENTS
Including ROS AGRO PLC GDRs in MVIS
Russia Small-Cap Index
In September 2021, MVIS Indices provider
announced the results of another quarterly
review of the country indices. ROS AGRO
PLC Global Depositary Receipts were
included in the MVIS Russia Small-Cap
Index.
Increasing the minimum dividend
payout to 50%
On 13 September 2021, the Board of
Directors of ROS AGRO PLC increased the
Company's minimum dividend payout from
25% to 50% of IFRS net profit.
03
04
ROS AGRO PLC's secondary offering
of GDRs by the Company's majority
shareholder
On 30 September 2021, Vadim Moshkovich,
majority shareholder and Chairman of the
Board of Directors of ROS AGRO PLC,
sold 19,800,000 GDRs worth USD 275
mn on the secondary security market.
The transaction resulted in the following
changes in the share capital structure:
• Vadim Moshkovich's stake fell from
70.83% to 57.12%, excluding treasury
shares;
05
January February March April May June July August September October November December
1718
19 20
21 22 23 24 2526 2728
29 30
01 02 03 04 0506 07 0809 10 11 1213 14
15 16
COMPANY-WIDE EVENTS
SUGAR BUSINESS
AGRICULTURE BUSINESS
OIL AND FATS BUSINESS
MEAT BUSINESS
• Maxim Basov, a member of the Board of
Directors of ROS AGRO PLC and CEO
of LLC Rusagro Group of Companies,
acquired 250,000 GDRs. His stake
increased from 7.54% to 7.73% excluding
treasury shares;
• Maxim Vorobiev, a minority shareholder
in the Company, acquired 8,260,543
GDRs. His stake increased from 4.00% to
10.14% excluding treasury shares;
• The free float rose from 20.60% to
24.99%, excluding treasury shares.
of 2021
6
About Rusagro / HIGHLIGHTS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

Sustainable development
Launching a project to develop a
sustainable development strategy
In order to support sustainable growth,
create additional value and enhance
thetransparency of disclosure of non-
financial information, it was decided
tolaunch a project to develop Rusagro’s
ESG strategy andtransition to international
non-financial reporting standards.
Including Rusagro in the RAEX-Europe
ESG ranking
On 15 April 2021, the independent credit
rating agency – RAEX-Europe included
anagricultural company, Rusagro, in its ESG
ranking of Russian companies for the first
time. The Company was ranked 51st out
of110 companies.
Upgrading the sustainability rating
oftheExpert magazine
On 6 December 2021, Expert magazine
published its 2020 Sustainability Scorecard
for Russian companies. Rusagro moved up
from 50th place last year to sixth place with
a rating score of 66%.
Winning in the Best Employer category
ofthe Star of the Far East Award
On 9 December 2021, a special public and
business award ceremony, The Star of the
Far East, was held in Moscow during the
Days of the Far East. Rusagro Group of
Companies won the Best Employer award.
09
10
11
12
Corporate governance
Appointing a new Chief Financial Officer
(CFO) of LLC Rusagro Group of Companie
In January 2021, Rusagro appointed Boris
Chernicher to the position of Chief Financial
Officer of the Company, who headed the
Controlling, Investments and Reporting
Department and Acting as Chief Financial
Officer of Rusagro's Oil and Fats Business
since 2019.
Appointing a Chief Investor Relations
& ESG Officer of Rusagro Group
ofCompanies
Rusagro appointed Svetlana Kuznetsova,
Chief Investor Relations & ESG Officer,
who has headed the Company's External
Investment Department since 2016, to
manage thesustainability issues.
Expiring contract of Maxim Basov,
CEOofRusagro Group of Companies
Maxim Basov decided not to renew his
contract, which expired on 31 December
2021. He will continue to be a shareholder
and member of the Board of Directors of
ROS AGRO PLC.
06
07
08
Technologies
Winning gold in the SAP Value Award
forthe HR digitalisation project
In October 2021, Rusagro's HR digital
transformation project won gold in the
People are the Most Valuable Capital
category. The goal of the SAP SF project is
to consolidate more than 40 HR services
on a single platform. The system facilitated
a painless transition to telecommutitng
during the pandemic.
Transiting to a digital interface
forsuppliers management
Rusagro launched the Digital Farmer
application to automate raw material
suppliers relationship management.
More than 1,500 agricultural producers
inthe three regions where the Oil and
Fats Business operates are already using
theapp. Over time the app will be rolled
out toother Rusagro regions and offered
tothird-party users.
Rusagro Tech Challenge innovation
competition
Rusagro, together with the Skolkovo
Fund, held a large-scale competition for
technological projects inthe Agriculture,
Meat, Oil and Fats and Sugar Business
segments. As a result, 5projects
were selected as pilots totalling up
toRUB100mn.
Winning a grant, in association with
AssistAgro, for a project of implementing
artificial intelligence for fields assistance
LLC Rusagro-Invest and LLC AssistAgro
won a grant to implement and refine
artificial intelligence in crop production
from the Skolkovo Fund under ofthe federal
Artificial Intelligence project oftheDigital
Economy national programme.
13
14
15
16
Events after the reporting date
Changes in the capital structure
On 7 March 2022, Granada Capital CY
Limited completed the sale of 1,973,599
shares of the Company, representing 7.22%
of the issued share capital of ROS AGRO
PLC, to Yury Zhuravlev, a citizen of the
Russian Federation. Given that Granada
Capital CY Limited is under indirect control
of Vadim Moshkovich, he reduced his
effective interest in the Company below
50%.
Withdrawal of Vadim Moshkovich
andRichard Smythe from the management
bodies of the Company
On 10 March 2022, Vadim Moshkovich
and Richard Smyth resigned from the
Board of Directors of the Company. Vadim
Moshkovich's term of office as Chairman
of the Board of Directors of the Company,
member of the Management Board and
other governing bodies of of Rusagro Group
companies were also terminated. Maxim
Basov was appointed as Chairman of the
Board of Directors.
7
About Rusagro / HIGHLIGHTS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

Sustainable development
Certifying the Znamensky Sugar Plant
fororganic sugar production
The National Union of Producers and
Consumers of Organic Products, "Organic
Product", and the organic production certi-
fication body, LLC "Organic Expert", issued
a certificate to Znamensky Sugar Plant con-
firming that the quality of the sugar under
the Chaikofsky brand complies with the
national organic standard GOST 33980.
17
For key highlights
of the Segment
see p. 17
SUGAR
BUSINESS
January February March April May June July August September October November December
1817
19 20
21 22 23 24 2526 2728
29 30
01 02 03 04 0506 07 0809 10 11 1213 14
15 16
COMPANY-WIDE EVENTS
SUGAR BUSINESS
AGRICULTURE BUSINESS
OIL AND FATS BUSINESS
MEAT BUSINESS
Exports
Sending the first pulp train to China
On 27 November 2021, Rusagro sent its first
container train of dried granulated beet pulp
to China. The railway service will reduce the
cost and time of transport. The Company
has started exporting pulp to China since
2020, where it is used as cattle feed.
18
8
About Rusagro / HIGHLIGHTS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

Business dealings
Leasing 49 ths hectares of farming lands
inthe Saratov Region
On 15 June 2021, Rusagro Group of Com-
panies leased 49 ths hectares of farming
lands in the Saratov Region to grow wheat
andsunflower.
19
Selling dairy assets
in the Belgorod Region
Rusagro sold the dairy farm in the Belgorod
Region and stopped producing cow's milk.
20
For key highlights
of the Segment
see p. 14
AGRICULTURE
BUSINESS
January February March April May June July August September October November December
19 20
1718
21 22 23 24 2526 2728
29 30
01 02 03 04 0506 07 0809 10 11 1213 14
15 16
COMPANY-WIDE EVENTS
SUGAR BUSINESS
AGRICULTURE BUSINESS
OIL AND FATS BUSINESS
MEAT BUSINESS
9
About Rusagro / HIGHLIGHTS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

Dispatching a train with bottled sunflower
oil to China
On 11 November 2021, Rusagro sent
afirst train full of bottled sunflower oil
toChina under the Schedroe Leto, Ya
lublu gotovit, BONISSIMO and Leto
Krasno (红色夏日) brands. The products hit
theshelves ofleading retail chains, online
retailers oftop marketplaces and were also
shipped tomajor distributors in China.
Receiving the Agribusiness Exporter of the
Year Award
JSC Zhirovoy Kombinat won first place
in the Agribusiness Exporter of the Year
nomination in the Large Business category
of the Exporter of the 2021 Year federal
competition hosted by the Russian Export
Center.
24
25
of Things Co.Ltd to supply sunflower
oil under the Leto Krasno trademark
totheHema chain owned by Alibaba
Group Holding Limited. Also, a specialised
Hangzhou Rusagro shop was opened
ontheJD.com marketplace to promote
online sales.
Launching Moscovsky Provansal Ya lublu
gotovit (I love cooking) mayonnaise
ontheJD.com marketplace
At early September 2021, Moscovsky
Provansal Ya lublu gotovit mayonnaise
was launched on the JD.com marketplace
inChina.
23
Exports
Signing a contract for the supply
ofsunflower oil to the retail network
inChina
In February 2021, the Chinese division
ofRusagro signed an agreement
for the supply of bottled sunflower
oil under theLeto Krasno (Beautiful
Summer) trademark to the Century Mart
hypermarket chain in China. This is the first
straightforward agreement with a Chinese
network.
Signing a contract for the supply
ofsunflower oil to Hema retail chain
inChina and opening a shop on JD.com
marketplace
In August 2021, Hangzhou Rusagro signed
an agreement with Shanghai Hema Internet
21
22
January February March April May June July August September October November December
21 22 23 24 2526 2728
1718
19
20
29 30
01 02 03 04 0506 07 0809 10 11 1213 14
15 16
For key highlights
of the Segment
see p. 15
OIL AND FATS
BUSINESS
Sales
Launching prepackaged cream and curd
cheeses under the Ya lublu gotovit brand»
Rusagro started selling cream and curd
cheeses under the Ya lublu gotovit brand.
The range of products includes 10%, 20%
and 33% cream and curd cheeses creamy-,
Italian herb- and mushroom-flavoured.
There is a QR code on each pack to view the
available recipes.
Rusagro became Russia's No. 1 supplier
offrying oils to HoReCa
Rusagro won tenders to supply liquid frying
fats to several leading international clients
in the HoReCa segment in 2022. This made
the Company the Russia's largest supplier
of deep frying oils in this segment.
Business dealings
Rusagro announces buyout of 25% stake in
LLC Primorskaya Soya
Rusagro acquired a 25% stake in Primorskaya
Soya, consolidating 100% of the company
shares in its ownership. Primorskaya Soya
processes soybeans and produces vegetable
oil and meal.
26
27
28
COMPANY-WIDE EVENTS
SUGAR BUSINESS
AGRICULTURE BUSINESS
OIL AND FATS BUSINESS
MEAT BUSINESS
10
About Rusagro / HIGHLIGHTS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

Events after the reporting date Production
Launching the Rusagro-Primorye
compound feed mill at the EEF
On 2 September 2021, at the Eastern
Economic Forum in Vladivostok, Russian
President Vladimir Putin gave the go-ahead
for a new compound feed complex at
Rusagro-Primorye LLC in the Mikhailovsky
district of the Primorye Territory. The project
was presented to the Russian Leader by
the Chairman of the Board of Directors
of Rusagro Group of Companies, Vadim
Moshkovich.
MEAT
BUSINESS
Launching recycling utilisation and meat
processing plants byLLCRusagro-
Primorye
In October, Rusagro-Primorye's uti-
lisation and meat processing plant
intheMikhailovsky district, Primorye
Territory, began operating in raw material
pre-commissioning mode, thus launching
the full cycle production chain of Rusagro's
vertically integrated pig-breeding cluster
inthe Far East.
January February March April May June July August September October November December
29 30
1718
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21 22 23 24 2526 2728
01 02 03 04 0506 07 0809 10 11 1213 14
15 16
29
30
For key highlights
of the Segment
see p.16
Acquiring a pig farm in the Belgorod
Region
In January 2022, Rusagro acquired the
property of a 2,500-sow pig farm in the
Belgorod Region. The target capacity
for commercial pork production is
10thstonnes per year. This deal will
not in any way affect pork production
volumes in 2022.
COMPANY-WIDE EVENTS
SUGAR BUSINESS
AGRICULTURE BUSINESS
OIL AND FATS BUSINESS
MEAT BUSINESS
11
About Rusagro / HIGHLIGHTS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

Key results
Rusagro is one of the largest vertically integrated
agriholdings in Russia. The Company covers a significant
share of domestic production of pork, sugar, agricultural
and oil and fats products. Based on the results of 2021,
the Company’s average headcount totalled 20thspeople,
and the turnover – RUB 223 bn (+40%).
REVENUES
1
RUB bn
CAPITAL INVESTMENTS
RUB bn
ADJUSTED EBITDA
1
RUB bn
HEADCOUNT
ths people
2
‘17
‘18
79.1
51%
83.0
138.2
159.0
14.0
16.2
20.0
32.0
17.5
15.7
16.8
14.2
14.7
15.9
20.5
20.2
17%
16%
15%
48%
26%
18%
12%
58%
19%
15%
7%
36%
26%
19%
15%
4%
‘19 ‘20
‘21
‘17
‘18 ‘19 ‘20
‘21
‘17
‘18 ‘19 ‘20
‘21
‘17
‘18 ‘19 ‘20
‘21
1.
Revenues and adjusted EBITDA calculation exclude
the corporate centre and before intersegment
eliminations.
2.
Headcount as of the year-end.
Sugar Segment
Agriculture Segment Oil and Fats Segment Meat Segment Corporate Centre and Unified Service Centres
↑40%
222.9
RUB bn
↓2%
13.8
RUB bn
↑5%
20.3
ths people
↑50%
48.1
RUB bn
for 2021
12
About Rusagro / KEY RESULTS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

BRANDS
SUGAR SEGMENT
OIL AND FATS SEGMENT
24
brands
MEAT SEGMENT
13
About Rusagro / KEY RESULTS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

41.9
Positions in Russia Production
highlights
Financial
results
Sales
indicators
RUB bn
REVENUES
No.
4
LAND HOLDER
IN RUSSIA
689
ths ha
604
ths ha
the land bank
of arable lands
AGRICULTURE
SEGMENT
Average headcount
ofemployees
↑26%
3.6
mn tonnes
OF SUGAR BEET
↓26%
0.9
mn tonnes
OF GRAIN CROPS
↑19%
0.4
mn tonnes
OF OIL CROPS
↓5%
3.9
ths people
↑53%
23.3
RUB bn
ADJUSTED EBITDA
↑12 p.p.
56
EBITDA MARGIN
3 589
ths tonnes
of sugar beet
↑22%
768
ths tonnes
of wheat
↑17%
330
ths tonnes
of soybean
0%
71
ths tonnes
of maize
↓52%
59
ths tonnes
of sunflower
↓24%
21
ths tonnes
of other crops
↓84%
↑22%
14
About Rusagro / KEY RESULTS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

125.2
Positions in Russia Production
highlights
Financial
results
Sales
indicators
133
ths tonnes
of mayonnaise
↓4%
RUB bn
REVENUES
No.
1
No.
1
No.
2
No.
2
SUNFLOWER OIL
PRODUCER IN RUSSIA
CONSUMER MARGARINE
PRODUCER IN RUSSIA
INDUSTRIAL FATS
PRODUCER IN RUSSIA
MAYONNAISE
PRODUCER IN RUSSIA
13
%
52
%
22
%
16
%
share in sunflower oil
production in Russia
share in consumer marga-
rine production in Russia
share in industrial fats
production in Russia
share in mayonnaise
production in Russia
OIL AND FATS
SEGMENT

1
Average headcount
of employees
↓3%
649
ths tonnes
OF CRUDE
VEGETABLE OIL
↑3%
5.2
ths people
35
ths tonnes
of consumer
margarine
↓18%
↑36%
12.8
RUB bn
ADJUSTED EBITDA
↓2 p.p.
10
EBITDA MARGIN
1.
Including results obtained from assets managed by Rusagro on a leasehold basis.
157
ths tonnes
of bottled oil
↓2%
335
ths tonnes
of industrial fats
↑8%
391
ths tonnes
of crude oil
↑2%
582
ths tonnes
of meal
↓1%
↑57%
15
About Rusagro / KEY RESULTS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

39.6
Positions in Russia
Average headcount
of employees
Production
highlights
Financial
results
Sales
indicators
29
ths tonnes
of offal
↑1%
29
ths tonnes
of semi-finished
products
↑24%
103
ths tonnes
of large cuts
↓9%
58
ths tonnes
of half-carcasses
31
ths tonnes
of live pigs
↓9%
RUB bn
REVENUES
No.
4
COMMERCIAL PORK
PRODUCER IN RUSSIA
6
%
share in commercial pork
production in Russia
MEAT
SEGMENT
0%
309
ths tonne
OF PORK
IN LIVE WEIGHT
↑1%
895
ths tonne
OF COMPOUND
FEED
↓9%
5.9
RUB bn
ADJUSTED EBITDA
↓5 p.p.
15
EBITDA MARGIN
↑3%
7.4
ths people
↑22%
↑18%
16
About Rusagro / KEY RESULTS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

36.4
Positions in Russia
Average headcount
ofemployees
Production
highlights
Financial
results
Sales
indicators
180
ths tonnes
of pulp
769
ths tonnes
of sugar
↓5%
RUB bn
REVENUES
No.
1
No.
3
CUBE SUGAR PRODUCER
IN RUSSIA
SUGAR PRODUCER
INRUSSIA
48
%
15
%
share in the Russian white
cube sugar market
share of sugar
production in Russia
SUGAR
SEGMENT
↑4%
791
ths tonnes
OF SUGAR
↑41%
9.0
RUB bn
ADJUSTED EBITDA
↑2 p.p.
25
EBITDA MARGIN
↑3%
3.1
ths people
↑29%
↓24%
25
ths tonnes
of betaine
↓7%
17
About Rusagro / KEY RESULTS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

Business
model
Rusagro has a vertically integrated business
model. The Sugar, Meat, and Oil and Fats
Businesses have in place fully integrated
production systems, with raw materials
supplied by the Agriculture Business.
With the vertically integrated structure,
the business can exploit advantages of
diversification, guarantee the supply of raw
materials with minimum transportation
costs, and effectively manage all elements of
the value chain.
A high level of vertical integration both
within each of the businesses and between
the segments gives Rusagro a competitive
edge in the markets, ensures superior
production efficiency and financial stability.
In order to gain maximum benefits of each
business, the Company adopted a flexible
commercial policy that does not restrict the
sales of products to third-party companies.
AGRICULTURE
BUSINESS
MEAT BUSINESS
OIL AND FATS BUSINESS
SUGAR BUSINESS
For Business
details
see p. 44
Cultivation
and sowing campaign
Cultural treatment
and top dressing
Harvesting
and storage
Sales
of products
Beet sugar
production
Extract sugar
production
Production
of cereals
Marketing
and sales
Compound feed
production
Livestock
breeding
Slaughtering
and deboning
Slaughterhouse
refuse recycling
Marketing
and sales
Oil
extraction
Production of industrial fats
and whey powder
Production of consumer oil&fats
and dairy products
Marketing
and sales
Oil crops
Grain
crops
Lime
Manure
Meal
Sugar
beet
The Agriculture Business
supplies sugar beet for
theSugar Segment, sells
grain to the Meat Business
for subsequent coum-
pound feed production, and
supplies the Oil and Fats
Business with soybeans
and sunflower seeds when
needed.
Interactive
version
18
About Rusagro / IBUSINESS MODEL
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

MEAT BUSINESS
OIL AND FATS BUSINESS
SUGAR BUSINESS
For Business
details
see p. 96
For Business
details
see p. 83
For Business
details
see p. 62
Consumer segment
Large cuts, portion cuts, small cuts, chop
meat, kupati, barbecue cuts, marinated
meat
Industrial segment
Live-weight pork, half-carcasses,
industrial cuts, by-products, meat and
bone meal, fat, blood meal
Consumer segment
White and brown bulk
and lump sugar, cereals
Industrial segment
Sugar, betaine, molasses, pulp
Consumer segment
Packaged vegetable oil, margarine
andspreads, mayonnaise and sauces,
soaps, cheeses, butter and spreads, dairy
cream
Industrial segment
Vegetable oil, meal, whey powder
industrialblends
All of the home-harvested beets are used by the Sugar Business. The
beets come from the nearby territories, which minimises transporta-
tion costs. Pulp, molasses, refined sugar, betaine, and sugar beet lime
are sugar processing co-products. Pulp is exported, and sugar beet
lime is used as soil amendment.
Two molasses desugarisation facilities recover sucrose extract to
produce additional sugar, and betaine is exported. Sugar and cereals
are sold under six brands.
Grain is supplied to compound feed mills of the Meat Business. The
breeding farm raises young pigs and improves pig breeds. The sow
farm grows piglets for fattening and young animals for breeding re-
placements. The meat processing plant produces finished products,
including those sold under own private brand. Refuse is reduced
further for the production of compound feed, thereby closing the
production cycle.
The Agriculture Business sells soybeans and sometimes sunflower
seeds to the Oil and Fats Business to produce oil. The oil is sold to
third-party companies and used by the in-house oil and fats plants
to make products under 11 brands.
Part of the meal is worked into feed for pigs in the Meat Business.
Industrial fats are used to make spreads and cheese products.
.
VITAL FORCE
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

39
30
20
10
53
38
43
23
14
7
7
Tambov Region
Belgorod Region
Kursk Region
Orel Region
Belgorod Region
Tambov
and Voronezh Regions
Primorye Territory
Orel Region
Saratov Region
Kursk Region
Belgorod Region
Tambov Region
Primorye Territory
4
9
Geographic
The Company's assets are located in 11
regions of the Russian Federation: Belgorod,
Tambov, Voronezh, Kursk, Orel, Sverdlovsk,
Samara, Ulyanovsk, Saratov, and Orenburg
Regions andPrimorye Territory. The Company
is headquartered in the Tambov Region, with
aseparate division inMoscow.
1.
Not including the capacity of the two molasses desugarisation facilities.
0%
53.9
ths tonnes/day
↑6%
110
ths sows
↑8%
604
ths ha
STRUCTURE OF ASSETS
BY REGIONS IN 2021
CAPACITY
OF SUGAR
PLANTS
BY REGIONS, %
1
BREEDING SOWS
BYREGIONS, %
ARABLE LAND
BYREGION, %
Rusagro's oil extraction facilities are located in
the Saratov Region, the Samara Region and Pri-
morye Territory, while oil and fats production fa-
cilities are in the Saratov and Sverdlovsk Regions.
footprint
20
About Rusagro / GEOGRAPHIC FOOTPRINT
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

TAMBOV
AND VORONEZH
REGIONS
3 sugar plants
1 cereal processing plant
10 pig farms
3 breeding farms
1 compound feed mill
1 slaughterhouse and meat
processing plant
2 elevators
152 ths ha of arable land
OREL
REGION
1 sugar plant
43 ths ha of arable land
KURSK
REGION
↓4%
0.6
ths employees
↓9%
0.5
ths employees
2 sugar plants
27 ths ha of arable land
SVERDLOVSK
REGION
1 oil and fats plant
BELGOROD
REGION
3 sugar plants
9 pig farms
1 breeding farm
2 compound feed mills
1 slaughterhouse and meat
processing plant
2 elevators
257 ths ha of arable land
ORENBURG REGION
2 elevators
SAMARA
REGION
1 oil extraction plant
1 butter- and cheesemaking
plant
2 elevators
ULYANOVSK
REGION
1 dairy plant
PRIMORYE
TERRITORY
SARATOV
REGION
↓3%
5.1
ths employees
↑3%
6.6
ths employees
↑26%
1.8
ths employees
↑42%
0.9
ths employees
↑12%
3.0
ths employees
↑3%
0.8
ths employees
Sugar Business
Agriculture Business
Oil and Fats Business
Meat Business
1 oil and fats plant
2 oil extraction plants
39 ths ha of arable land
4 pig farms (two more pig
farms will be launched in 2022)
1 breeding farm
1 compound feed mill
1 slaughterhouse and meat
processing plant
1 oil extraction
and oil & fats plan
86 ths ha of arable land
21
About Rusagro / GEOGRAPHIC FOOTPRINT
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

65.6
REVENUES
FROM PRODUCTS
SALES
In 2021, Rusagro exported products to50
countries. The main trading partners
are South-West Asia and CIS countries.
TheCompany also continued to develop
exports to East Asian countries, particularly
China and Vietnam.
Rusagro's export revenues in 2021 totalled RUB 65.6 bn – up 28% year-on-year.
The key driver of this growth was an increase in export revenues from the Oil and
Fats segment to RUB 54.6 bn (+59%) and the Meat segment to RUB 6.1 bn (+47%).
Restrictive trade measures being in effect in Russia in 2021 and the declining grain
harvest (–26%) made the revenues in the Agriculture segment drop considerably,
amounting to RUB 1.1 bn against RUB 6.7 bn the year earlier.
EXPORT REVENUE BY SEGMENT
97%
3%
44%
56%
15%
85%
10%
90%
MEAT
BUSINESS
OIL AND FATS
BUSINESS
SUGAR
BUSINESS
AGRICULTURE
BUSINESS
Share of export revenues
Share of revenue
from domestic sales
Share of export revenues
Share of revenue
from domestic sales
Share of export revenues
Share of revenue
from domestic sales
Share of export revenues
Share of revenue
from domestic sales
↓83%
1.1
RUB bn
↑47%
6.1
RUB bn
↑59%
54.6
RUB bn
↓34%
3.7
RUB bn
71
IN RUSSIA
↓3 p.p.
29
EXPORT
RUB bn
EXPORT REVENUES
↑28%
geography
Sales
22
About Rusagro / SALES GEOGRAPHY
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

DJIBOUTI
SERBIA
SINGAPORE
TAJIKISTAN
TURKEY
UKRAINE
FINLAND
SWITZERLAND
SWEDEN
JAPAN
KAZAKHSTAN
KYRGYZSTAN
CHINA
ANGOLA
COTE D'IVOIRE
VIETNAM
HONG KONG
MONGOLIA
ISRAEL
NORWAY
SPAIN
GUINEA
UAE
IRAN AFGHANISTAN
BELARUS
ESTONIA
LITHUANIA
MOLDAVIA
LATVIA
POLAND
BELGIUM
GERMANY
DENMARK
NETHERLANDS
IRELAND
Sugar Business
Agricultural Business
Oil and Fats Business
Meat Business
50
SALES OF RUSAGRO'S
PRODUCTS
countries
USA
MEXICO REPUBLIC OF HAITI
TOGO
BENIN
ABKHAZIA
SOUTH OSSETIA
GEORGIA
ARMENIA
AZERBAIJAN
UZBEKISTAN
TURKMENISTAN
AUSTRIA
23
About Rusagro / SALES GEOGRAPHY
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

CARING FOR
THEENVIRONMENT
SOCIAL
DEVELOPMENT
CORPORATE
GOVERNANCE
Consumer care
• Promotion of healthy diets and sus-
tainable consumption
• Organic farming
Sustainable business practices
• Transparent ownership structure
• Better corporate governance prac-
tices
• Fair remuneration for top managers
• Upholding of shareholders’ rights and
interests
• Sustainable supply chain
• Animal welfare
Sustainable
development
Rusagro is a systemic enterprise
in Russia, providing local food
producers with raw materials
and the domestic households
with key foodstuffs. The
Company's business continuity
is essential for national food
security. In pursuance of
"Making People's Lives Longer
and Better", Rusagro recognises
its responsibility to future
generations and places a strong
emphasis on ethical business
practices.
Climate change
• Achieving climate neutrality
• Higher energy efficiency
• Climate change adaptation
Impact on the ecosystem
• Soil health
• Waste management
• Reduction of pollutant emissions
• Water management
• Biosecurity and veterinary safety
• Resilient packaging
Care for employees
• Talent acquisition and retention
• Training and career advancement
• Employee health and safety
• Equal rights and opportunities
Support of local communities
• Charity
• Corporate volunteering
• Agricultural commodity producers
management
24
About Rusagro / SUSTAINABLE DEVELOPMENT
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

KEY ESG
OUTCOMES IN 2021
INDEPENDENT ASSESSMENT
OF RUSAGRO'S PROGRESS
IN IMPLEMENTING THE ESG AGENDA
In 2021, Rusagro became the first agricultural company
to be included in RAEX-Europe ESG ranking
Rusagro's place in Expert magazine's sustainability ranking
for2020 – the Company moved up from 50th place within a
year
Rusagro won the Star of the Far East award
in the Best Employer category
Life stages
of Rusagro's
ESG agenda
Appointing
aperson in charge
of formulation
andimplemention
oftheESG agenda
Release of the first
ESG report according
to international GRI
standards
Laying out an action
plan to navigate
theESG agenda
Approval of the first
ESG strategy
Analysing
ofthematurity
ofESG practices
intheCompany
Appointment of ESG
Curator on the Board
of Directors
Obtaining S&P CSA
and CDP ratings
(Carbon Disclosure
Project)
Implemented
in 2021
Scheduled
for 2022
48
LOCAL RESIDENTS AMONG
THE TOP MANAGEMENT
38.8
RUB mn
ALLOCATED TO SUPPORT
LOCAL COMMUNITIES
↑1 p.p.
37
WOMEN IN
MANAGEMENT
↓17%
20.9
mn cu.m
WATER CONSUMPTION
3.9
mn tonnes
WASTE REDUCTION
13
UN SDGs
COVERED BY RUSAGO'S
ESG STRATEGY
63
INTERNAL
RECRUITMENT
↑5%
20
ths employees
HEADCOUNT
↑85%
17
RUB mn
EMPLOYEES TRAINING
AND DEVELOPMENT COSTS
ПРЕМИЯ
ЗВЕЗДА
ДАЛЬНЕГО
ВОСТОКА
25
About Rusagro / SUSTAINABLE DEVELOPMENT
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

IT and
innovations
Rusagro is working towards
technological leadership
in agriculture and food
production. Over the past
few years, the Company
has noticeably intensify
efforts in digital business
transformation, research
and innovation, which
allow forimprovements
inproduction efficiency
and better management
ofclimate risks and changing
customer needs.
In doing so, Rusagro believes that the
services and products it develops will not
only benefit the company itself, but also
third-party agricultural goods producers,
thereby increasing the sustainability
ofthe national agribusiness industry as
awhole.
RUSAGRO-
TECHNOLOGY
MATHEMATICAL
SIMULATION SERVICE
GOLD IN THE SAP
VALUE AWARD
Established in August 2021 to reor-
ganise IT services in order to move
towards a centralised implementation
of the Company's digital transformation
strategy. Received IT company status in
December.
Agricultural producers in three regions
sell sunflowers through the Digital
Farmer app developed by Rusagro.
Key R&D projects under consideration
or underway in the Company at the end
of 2021.
Received by Rusagro at the Rusagro
Tech Challenge held jointly with the
Skolkovo Foundation in 2021.
Established in 2021 to support the
Company's digital development and
enablement objectives in working with
technologies such as computer vision.
At the end of the year, there were 10
people in the team and 22 projects in the
pipeline.
Received by Rusagro in 2021 for its HR
digitisation project to implement the
SAP SF system, which enabled the inte-
gration of more than forty HR services
on a single platform and a painless
transition to telecommuting.
>
1,500
producers
>
10
projects
300
applications for innovative
projects
26
About Rusagro /
INFORMATION TECHNOLOGIES AND INNOVATIONS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

PROMOTION OF INNOVATIONS
DIGITAL TRANSFORMATION
BIOTECHNOLOGIES
PRECISION FARMING
TECHNOLOGIES
BEST BREEDING PRACTICES
IN CROP PRODUCTION
ARTIFICIAL
INTELLIGENCE
INNOVATIVE PRODUCT
DEVELOPMENT
PROCESS
AUTOMATION
YIELD AND SOIL FERTILITY
ENHANCEMENT
ALGORITHMISATION
OF DECISION-MAKING
SUSTAINABLE
DEVELOPMENT
INCREASED PRODUCTIVITY
AND REDUCED COSTS
27
About Rusagro /
INFORMATION TECHNOLOGIES AND INNOVATIONS
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

Corporate
governance
Rusagro has been a publicly traded company since 2011. The global
depositary receipts (GDRs) issued for the Company’s shares are
listed on London and Moscow stock exchanges. At the end of 2021,
the Company had 24.6% of free float.
+
4 p. p.
8.75 RUB bn
≥
50
Increase in the Company's free float as
a result of a secondary public offering of
ROS AGRO PLC GDRs by the Company's
majority shareholder in 2021.
Paid out in dividends from 2021 profits –
a record high of the Company.
For the first time in Rusagro's history,
minimum dividend payout is set at no
less than 50% of Rusagro Group's IFRS
net profit.
In September 2021, the majority
shareholder of ROS AGRO PLC,
Vadim Moshkovich, carried out
a secondary public offering
of GDRs, which reduced his
share in the Company to
56.2% including treasury
shares.
56.2
VADIM MOSHKOVICH
Maksim Basov participated
inthetransaction
andincreased his stake
to7.6% including treasury
shares.
7.6
MAKSIM BASOV
24.6
FREE-FLOAT
1.6
ROS AGRO PLC
Maksim Vorobiev
participated
inthetransaction
andincreased his
stake to 10.0%
including treasury
shares.
10
MAKSIM VOROBIEV
SPO
DIVIDENDS
NEW DIVIDEND POLICY
SHARE CAPITAL STRUCTURE
AT THE END OF 2021
28
About Rusagro / CORPORATE GOVERNANCE
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

Legal structure
ROS AGRO PLC
Cyprus
JSC RUSAGRO GROUP
Tambov
ROS AGRO TRADING LIMITED LIMITED
Hong Kong
LLC RUSAGRO GROUP OF COMPNIES
Tambov
OTHERS SUGAR BUSINESS OIL AND FATS BUSINESSAGRICULTURE BUSINESS
ROS AGRO CHINA LIMITED
Hong Kong
LLC SOUYZSEMSVEKLA JSC ZHIROVOY KOMBINAT
LLC OTIASSKOYE JSC SAMARAAGROPROMPERERABOTKA
LLC PRIMORSKAYA ZEMLYA LLC PRIMORSKAYA SOYA
LLC RUSAGROENERGOSBYT LLC RUSAGRO-SARATOV
LLC RUSAGRO TECH LLC RUSAGRO-ATKARSK
LLC TSIFROVOY FERMER
(DIGITAL FARMER)
LLC RUSAGRO-BALAKOVO
TEMAN TERMINAL LIMITED
LLC MOLOCHNYE PRODUCTY RUSAGRO
LLC MOSCOVSKY PROVANSAL
LLC AGRO-BELOGORIE
GROUP OF COMPANIES
LLC RUSAGRO-ZAKUPKI
LLC RUSAGRO-ALTAI
杭州俄 农贸 易有限 责任
HANGZHOU RUSAGRO TRADING LIMITED
JSC OTRADINSKY SAKHARNYI
KOMBINAT
Voronezh Region Ekaterinburg
Tambov Samara
Ussuriysk Ussuriysk
Tambov Saratov
Moscow Saratov Region
Moscow
Saratov Region
Cyprus
Samara
Moscow
Belgorod
Saratov Region
Altai
China, Hangzhou
Orel
LLC RUSAGRO-CENTRE LLC RUSAGRO-INVEST LLC KSHENAGRO
LLC RUSAGRO-SAKHAR LLC AGROTECHNOLOGII LLC VOZROZHDENIYE
LLC RUSAGRO-BELGOROD JSC PRIMAGRO LLC OTRADAAGROINVEST
LLC RUSAGRO-TAMBOV LLC RUSAGRO-MOLOKO LLC RUSAGRO-NPK
OJSC KRIVETS-SAKHAR LLC ARMADA-LAND LLC AGROMELIORANT
JSC GERKULES GEORITM
JSC KSHENSKIY
SAKHARNYI ZAVOD
LLC LANDLORD
Moscow Belgorod Kursk
Tambov Tambov Tambov
Belgorod Ussuriysk Orel
Tambov Belgorod Saratov
Kursk Primorye Territory Primorye Territory
Voronezh Primorye Territory
Kursk
Primorye Territory
Assets in the process of winding up.
50%
100%
100% 100% 100% 100%
100% 100% 100% 100%
100% 100% 100% 100%
100%
100% 100% 100% 100% 100%
100% 100% 100% 100% 100%
100%
100%
100%
100%
100% 100% 100%
100% 100%
100%
99.9%
100%
100%
100%
89.7%
50%
22.5%
MEAT BUSINESS
LLC TAMBOVSKY BEKON
LLC RUSAGRO-PRIMORYE
LLC REGIONSTROY
俄农畜牧
ROSAGRO MEAT PRODUCT CO ., LTD
Tambov
Ussuriysk
Ussuriysk
China, PingduPingdu
100%
100%
100%
100%
100%
29
About Rusagro / LEGAL STRUCTURE
ABOUT RUSAGRO
RUSAGROGROUP.RU/EN

02
STRATEGIC
REPORT
ANNUAL REPORT 2021
ABOUT RUSAGRO
01
REVIEW OF RUSAGRO'S
BUSINESS RESULTS FOR 2021
03
CONSOLIDATED
FINANCIAL RESULTS
04
CORPORATE
GOVERNANCE
05
APPENDICES
06
31 Statement by the Chairman
of the Board ofDirectors
ofROS AGRO PLC
33 Statement bythe CEO
of Rusagro Group ofCompanies
35 Development strategy
STRATEGIC REPORT
RUSAGROGROUP.RU/EN

Interactive
version
Statement by
the Chairman
of the Board
of Directors
Dear Shareholders,
The Board of Directors commends Rusagro's
performance in 2021. Despite trade restrictions
and retail price regulation in Russia, the
Company achieved its highest ever revenue and
earnings before interest, tax, depreciation and
amortisation, resulting in a 71% increase in net profit
toRUB41.4bn.
Rusagro's senior management demonstrated excellent performance
in achieving the Company's strategic goals in 2021. During the year,
Rusagro consolidated its status as the largest vertically integrated
and diversified Russian agricultural holding, launched a pig-breeding
cluster in the Primorye Territory, boosted exports of a range of product
categories, retained its position in the retail market, upgraded its
human capital assets and significantly advanced the automation and
digitalisation of all business processes. During the reporting period,
Rusagro issued its first ESG report after international standards and
started the work on its first sustainability strategy.
Today Rusagro is the largest national producer of sunflower oil and
consumer margarine, second largest producer of industrial fats
and mayonnaise, third largest producer of sugar and fourth largest
producer of pork (with a very small difference with the third largest
company of 0.6 ths tonnes). Rusagro also ranks fourth among Russia's
top landholders in terms of its agricultural land bank size.
The Company is a successful player not only in the industrial goods
market, but also in the retail segment. For example, Rusagro's sugar
brands (Russkii Sakhar, Chaikofsky, Khoroshiy and Mon Café) account
for 48% of the Russian white cube sugar market, while the Brauni brand
holds 28% of the brown cube sugar market. The brands of oil and fats
products occupy a significant share of local markets: in the Urals, the
No.1 mayonnaise brand with a 42% share is Provansal EZhK , and the
No.1 margarine brand with a 59% share is Schedroe Leto (Generous
Summer). The Slovo Myasnika (Butcher's Word) brand is still only fifth
in the Russian market, but is increasing its share every year (9% in
2021).
In order to gain its competitive edge, Rusagro commits significant
resources to deliver on a digital transformation strategy and to find
high-end innovative solutions. For better management of these
resources, the Company established Rusagro-Technology and a unified
Mathematical Simulation Service in 2021 to centralise its IT services.
In pursuit of innovative solutions the Company held a Rusagro Tech
Challenge competition together with the Skolkovo Foundation. As
results, five projects were selected to launch joint pilots.
of ROS AGRO PLC
31
Strategic report /
STATEMENT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS
STRATEGIC REPORT
RUSAGROGROUP.RU/EN

With well-targeted increase in investments into the development of
human capital (from RUB 2.6m to RUB 17.1m over the past five years),
Rusagro enjoyed successful results in this essential for business
continuity component in 2021. The investments covered various
projects aimed at the improvement of staff training and development
system and at its automation. For example, the number of man-courses
taken doubled and more employees were recruited as mentors and
internal instructors in the last year.
In an effort to share Rusagro's success, the Board of Directors
recommended record dividends of RUB 8.8 bn (USD 119.7 mn) for
1H 2021 (USD 119.7 mn), or RUB 65.0 per GDR (USD 0.89 per GDR).
In September 2021, the Board of Directors also resolved to increase
the minimum level of dividend payments from 25% to 50% of the
Company's net profit.
HISTORICAL RECORDS
OFRUSAGRO'S NET PROFIT
RUB bn
24.3
'20
9.7
'19
12.8
'18
5.6
'17
13.9
'16
23.7
'15
20.2
'14
3.2
'13
4.3
'12
2.4
'11
5.1
'10
41.4
'21
↑ 5 times
8.8
RUB bn
DIVIDENDS FOR 1H 2021
↑ 71%
41.4
RUB bn
NET PROFIT IN 2021
Vadim
Moshkovich
Chairman of the Board of Directors
of ROS AGRO PLC until 10 March 2022
32
Strategic report /
STATEMENT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS
STRATEGIC REPORT
RUSAGROGROUP.RU/EN

Interactive
version
Statement
by the CEO
Rusagro's core business segments recorded the following adjusted
earnings before interest, taxes, depreciation and amortisation (EBITDA) in
the reporting period.
• The year-end results showed that the Agriculture Business was the
most profitable business, generating 48% of Rusagro's EBITDA before
intersegment eliminations and other operating income and reaching
RUB 23.3 bn (+53% from 2020). Revenue growth of 22% (to RUB 41.9
bn) against relatively stable production costs enabled the Group to
achieve a profit margin of 56% year-on-year (44% in 2020). The positive
changes in market prices for agricultural products and increased sales
volumes of sugar beet and wheat were the key revenue drivers.
• The Oil and Fats Business, the Company's largest business by revenue
size (51% of Rusagro's revenue before intersegment eliminations and
other operating income), posted a 36% increase in EBITDA to RUB 12.8
bn. This was favoured by a 57% rise in revenues (to RUB 125.2 bn) from
the sale of bulk oil, industrial fats and dairy products, the positive effect
of which was partially offset by a higher growth rate in raw material
costs. Adjusted EBITDA margin decreased by 2 p.p. and stood at 10%.
• After a period of declining earnings from 2017 to 2019, the Sugar
Business showed a recovery in this indicator for the second consecutive
year. EBITDA rose by 41% in 2021 to RUB 9.0 bn thanks to a 29%
increase in revenue (to RUB 36.4 bn) and a 2 p.p. improvement in
EBITDA margin (to 25%) on the back of slower rise in sugar beet
procurement cost as compared to revenue growth.
• The Meat Business was the only business of the Company to experience
a decline in profits in 2021. This was mainly due to higher feed and
veterinary costs and the cost of launching the pig-breeding cluster in
the Primorye Territory, which would only reach full production capacity
in the next few years. As a result, despite revenue growth of 22% (to
RUB 39.6 bn), EBITDA fell by 9% (to RUB 5.9 bn) and EBITDA margin —
by 5 p.p. (to 15%).
Dear Shareholders,
Rusagro's financial results hit a new record in2021.
The revenue rose by 40% year-on-year and stood
atRUB 222.9 bn, and adjusted earnings before
interest, tax, depreciation and amortisation (EBITDA)
grew by 50% and reached RUB 48.1 bn. This growth
was achieved through successful implementation
of our strategic priorities, better adaptation
tonew market conditions, developed export sales
andfavourable pricing environment in the global
agri-food market.
of Rusagro Group
ofCompanies
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Strategic report /
STATEMENT BY THE CEO OF RUSAGRO GROUP OF COMPANIES
STRATEGIC REPORT
RUSAGROGROUP.RU/EN

In 2021, Rusagro continued the expansion of its export areas, generating
RUB 65.6 bn in export revenues, but was forced to reduce the share
ofrevenues from export operations from 32% to 29%. This had to do
with export restrictions on agricultural products and sunflower oil during
the year, as well as high local demand for sugar and its by-products due
toreduced sugar production in Russia. As a result, export revenues from
the Agriculture Business went down by 83% (to RUB 1.1 bn) and those from
the Sugar Business— by 34% (to RUB 3.7 bn). Meanwhile, the Company
managed to increase export revenues from the Oil and Fats Business and
Meat Business by 59% and 47%, respectively. Despite export quotas for
crude sunflower oil and lower demand for consumer oil products in key
purchasing countries, the Oil and Fats Segment again accounted for the
highest share of export revenue among the Company's other businesses
(44%).
Rusagro invested RUB 13.8 bn to implement its growth strategy and
maintain its existing business in 2021. With no new major projects, capital
expenditure was down 2% year-on-year. More than half of the allocated
funds (58%) were absorbed by the Meat Business, where the Company
continued to invest in the construction of a pork production cluster in the
Primorye Territory, with facilities launched during 2021. Investments in the
Agricultural Business totalled RUB 2.7 bn, the bulk of which was spent
for the purchase of machinery and vehicles to work on a new land plot in
the Saratov Region and to deliver a batching plant project in the Central
Region. Investments in the Oil and Fats Business and Sugar Business
amounted to RUB 2.1 bn and RUB 1.0 bn, respectively.
To deliver on our strategic priorities and business development, we
projected an increase in capital expenditure in 2022 to cover the further
construction of a pig-breeding cluster in the Primorye Territory, expand
the capacity of our oil extraction plants and increase our agricultural
fleet. However, at the end of February 2022, Russia faced unprecedented
sanctions, the effects of which necessitated a review of the Company's
further investment programme and strategic plans.
HISTORIC RECORDS
OFRUSAGRO'S ADJUSTED
EBITDA
RUB bn
32.0
'20
19.4
'19
16.2
'18
14.0
'17
18.2
'16
24.4
'15
18.1
'14
6.8
'13
8.8
'12
5.2
'11
7.9
'10
48.1
'21
Maxim
Basov
CEO of LLC Rusagro Group of Companies
until 31December 2021, Chairman of the Board
of Directors of ROS AGRO PLC since 10 March 2022
34
Strategic report /
STATEMENT BY THE CEO OF RUSAGRO GROUP OF COMPANIES
STRATEGIC REPORT
RUSAGROGROUP.RU/EN

Interactive
version
Development
strategy
The strategic business goal of Rusagro is to increase
returns for shareholders while adhering to the mission
of "Making people’s lives better and longer". In order
to achieve this goal in 2008, the Board of Directors
approved a strategic concept "From Field to Shelf",
which implementation is based on the Company's
vertically integrated business model in the area of food
production.
The strategy of the Company and its business units covers a period of five years and is annually
reviewed by the Board of Directors to redirect the efforts in order to address the changes
intheexternal environment and to effectively manage financial and human resources. The success
oftheCompany’s strategy rests upon a careful selection of long-term priorities and the exceptional
quality of the investment process that ensures a high return on equity.
In 2021, Rusagro decided to develop a sustainable development strategy, which aims towards
maintaining stable growth, adding more value for all stakeholders and enhancing the transparency
of non-financial information about the Company's activities. The Company plans to complete this
strategy in 2022, and consequently extend the list of its strategic priorities and tailor the corporate
governance system accordingly for their successful accomplishment.
Rusagro's strategy is a classified document, and its targets are exempt from public disclosure,
asthis entails significant risks and may prejudice the Company's success. For the demonstration
oftheCompany's success in implementing key priorities, the Annual Report contains an assessment
oftheresults over a five-year strategic planning period.
The Company's mission:
"Let's make
people's lives longer
andbetter"
↑ 50%
48.1
RUB bn
ADJUSTED EBITDA
↑ 2 p.p.
22
ADJUSTED EBITDA MARGIN
↑ 5%
20.3
ths employees
HEADCOUNT AS AT
THE YEAR-END
↑ 2times
17.1
RUB mn
INVESTMENTS
IN STAFF TRAINING
↑ 40%
222.9
RUB bn
REVENUE
↓2%
13.8
RUB bn
CAPITAL
INVESTMENTS
35
Strategic report /
DEVELOPMENT STRATEGY
STRATEGIC REPORT
RUSAGROGROUP.RU/EN

KEY PRIORITIES OF RUSAGRO’S
GROWTH STRATEGY
BUSINESS EXPANSION
Rusagro aims to ramp up the production
and expand its regional presence across
all four business segments in order to
maintain the market leadership. Below
are the ways to achievethis aim:
Organic growth — building new
production facilities, expanding
the land bank, modernising
andexpanding the existing assets;
Inorganic growth — acquiring
additional companies and assets,
inparticular in previously unexplored
business areas;
Increasing the share in the current
regions of presence and expanding
to new regions of Russia and tonew
countries through the export
development.
INCREASING SALES
OFRETAIL PRODUCTS
ANDBRANDS
Sticking by "From Field to shelf" concept,
Rusagro strives to develop its retail
products through:
Deeper processing of products;
Wider product mix;
Better representation in retail
channels;
Stronger private brands andtheir
promotion on the consumer
market.
DIGITAL
TRANSFORMATION
ANDINNOVATION
In an era of technological revolution,
the development and introduction of
innovative solutions in IT, automation,
and biotechnologies are becoming
increasingly important in the terms
of costs reduction, product quality
improvement and additional revenue
generation. The key areas of the
Company’s activities related to this
strategic priority include as follows:
introduction of precision farming
technology;
automation of business-
processes;
use of advanced biotechnology
methods;
higher yields and soil fertility.
DEVELOPMENT
OF HUMAN CAPITAL
Development of human capital
isacrucial instrument in ensuring
theCompany’s sustainable growth.
Themain goals in this area are:
Labour efficiency and
productivity management;
Strengthening of the employer
brand appeal;
Faster and better recruitment;
Improved quality of staff
andincreased internal hiring.
36
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STRATEGIC REPORT
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STRATEGY ACHIEVEMENTS
FOR2017–2021
Agriculture Business
In 2021, Rusagro reached a record 689 ths hectares of agricultural land.
The key objectives of the business expansion priority over the past five
years, in addition to the direct expansion of the land bank, have been to
preserve efficient arable land and reduce land unsuitable for cultivation.
Arable land accounted for 88% of Rusagro's land in 2021, compared to
84% in 2017.
‘17 ‘21
675
689
84%
88%
Land
area
2%
4 p. p.
Share
of arable
land
RUSAGRO'S AGRICULTURAL LAND
ths ha
BUSINESS EXPANSION
↑2%
689
ths ha
AREA OF FARMING LANDS
In 2021, Rusagro invested RUB 13.8 bn in achieving the desired goals – the projects to maintain and
to develop existing assets. The volume of investment dipped marginally – by 2% year-on-year. The
largest share of funds (58%, or RUB 8.1 bn) in the reporting period was allocated to the Meat Business,
which still continued the construction of a cluster in the Primorye Territory. Rusagro invested 19% of
the total budget (RUB 2.7 bn) in the Agriculture Business – down RUB 0.7 bn from the year earlier as
the expansion of the land bank necessitated the purchase of additional equipment and vehicles. The
reporting period also recorded higher investments in the Oil and Fats Segment – from RUB 1.8 bn to
RUB 2.1 bn – due to the projects for the relocation and expansion of oil extraction capacities. As all
major investment projects in the Sugar Business were completed, the investment to this segment was
cut by 33% and stood at RUB 1.0 bn.
1.
Including investments for development and maintenance of the Dairy Products Business,
which was merged with the Oil and Fats Business in 2021.
RUSAGRO’S CAPITAL INVESTMENTS
RUB bn
–2%
‘17 ‘18 ‘19
‘20 ‘21
17.5
16.2
16.8
14.1
13.8
RUSAGRO'S CAPITAL INVESTMENT
STRUCTURE BY BUSINESS IN 2021
%
58
19
Meat
Sugar
Oil and Fats
1
15
Agriculture
7
INVESTMENTS
37
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DEVELOPMENT STRATEGY
STRATEGIC REPORT
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STRATEGY ACHIEVEMENTS
FOR2017–2021
Oil and Fats Business
Over the past five years, Rusagro has
significantly expanded its oil and fats
production capacity and has occupied leading
positions in Russia. In 2019, the Company leased
and gradually bought out two oil extraction
plants and one oil and fats plant owned by
Solnechnye Produkty, thus stepping up the
output of vegetable oil four-fold, industrial fats
– thirteen-fold, and bottled oil and mayonnaise
– ten-fold.
RUSAGRO'S SUNFLOWER
PROCESSING CAPACITY
ths tonnes per day
RUSAGRO'S BOTTLED OIL
PRODUCTION CAPACITY
ths tonnes
‘17 ‘21
30
320
by 11 times
‘17 ‘21
1.2
4.6
by 4 times
RUSAGRO'S INDUSTRIAL FAT
PRODUCTION CAPACITY
ths tonnes
RUSAGRO'S MAYONNAISE AND
MAYONNAISE-BASED SAUCES
PRODUCTION CAPACITY
ths tonnes
‘17 ‘21
130
300
by 2 times
‘17 ‘21
30
400
by 13 times
↑4times
4.6
ths tonnes / day
SUNFLOWER
PROCESSING
CAPACITY
↑13times
400
ths tonnes
INDUSTRIAL FAT
PRODUCTION
CAPACITY
↑11times
320
ths tonnes
BOTTLED
OIL PRODUCTION
CAPACITY
↑2times
300
ths tonnes
MAYONNAISE
AND MAYONNAISE-BASED
SAUCES PRODUCTION CAPACITY
38
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DEVELOPMENT STRATEGY
STRATEGIC REPORT
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Sugar Business
STRATEGY ACHIEVEMENTS
FOR2017–2021
RUSAGRO'S SUGAR PRODUCTION
CAPACITY
ths tonnes
‘17 ‘21
920
1,080
17%
DEVELOPMENT OF RETAIL SALES AND BRANDS
No.
1
ON THE MAYONNAISE
MARKET IN THE URALS
Position of Rusagro's oil and fats brands
in the Russian market
No.
1
ON THE CONSUMER
MARGARINE MARKET
INTHE URALS
No.
2
ON THE MAYONNAISE
MARKET IN MOSCOW
No.
2
ON THE CONSUMER
MARGARINE MARKET
INRUSSIA AND
THEVOLGA REGION
Oil and Fats Business
Source: AC Nielsen for January–December 2021
Meat Business
RUSAGRO’S PORK PRODUCTION
ths tonnes
‘17 ‘21
207
309
49%
↑49%
309
ths tonnes
PORK PRODUCTION
↑17%
1,080
ths tonnes
SUGAR PRODUCTION
CAPACITY
Seeking out to maintain market share in a
growing market and to lay the groundwork
for the promotion of pork products exports,
between 2017–2021 Rusagro invested in the
expansion of pork production in the Tambov
Region, the creation of a vertically integrated
cluster in Primorye Territory and the acquisition
of the Kapital-Agro assets in the Belgorod
Region. This drove up live-weight pork
production by 49% – from 207 ths to 309 ths
tonnes.
Amid limited opportunities to expand its Sugar
Business over the past five years, Rusagro has
focused on improving the productivity of its
plants and reducing sugar losses. 2018 saw
the upgrade of two sugar plants, resulting in a
8% increase in their capacity. In 2017 and 2019,
Rusagro launched two molasses desugarisation
facilities, which allowed an extra sugar
production of over 100 ths tonnes from the
same volume of beet.
The main objectives of Rusagro's Oil and Fats Business are to maintain leading brand positions in
home regions. In 2021 in the Urals, the Provansal EZhK brand ranked first in the mayonnaise market
and the Schedroe Leto (Generous Summer) brand – in the consumer margarine market. In Moscow,
second place in the mayonnaise market went to the Moscovsky Provansal brand, which appeared in
Rusagro's brand portfolio in 2019.
39
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DEVELOPMENT STRATEGY
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STRATEGY ACHIEVEMENTS
FOR2017–2021
Meat Business
1.
Based on results for January to December 2021, according to AC Nielsen research.
2.
Based on results for November 2021, according to AC Nielsen research.
No.
5
ON THE CHILLED SEMI-FINISHED
PORK PRODUCTS
Position of the Slovo Myasnika
brand in the Russian market
‘17 ‘21
3
23
by 7 times
VOLUME OF RUSAGRO’S OWN-
BRANDED PORK SALES
ths tonnes
Sugar Business
No.
1
IN THE WHITE CUBE
SUGAR MARKET
Share of Rusagro’s sugar
product brands
in the Russian market
Source: AC Nielsen for January–December 2021
No.
2
IN THE WHITE CUBE
SUGAR MARKET
No.
1
IN THE CANE CUBE
SUGAR MARKET
↑7times
23
ths tonnes
VOLUME SALES
OF BRANDED PRODUCTS
After the launch of its own brand at the end of 2016, Rusagro has been steadily upping the production
of its own-branded consumer pork products. Based on the 2021 results, sales volume of chilled semi-
finished products under the Slovo Myasnika (Butcher's Word) brand have risen from 3 ths to 23 ths
tonnes over the last five years, and the market share of semi-finished pork products (including those
with the addition of other meats) – from 2% to 9%
1
.
Rusagro has been dominating the Russian retail sugar market for many years. The Russkii Sakhar and
Chaikofsky brands rank first and second in the white cube sugar market, while Brauni captured first
place in the brown cube sugar market. The brands have a combined market share of 48% in the white
cube sugar market, while Brauni holds a 28% share in the brown cube sugar market
2
.
9
MARKET SHARE OF CHILLED
SEMI-FINISHED PORK PRODUCTS
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DEVELOPMENT STRATEGY
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DIGITAL TRANSFORMATION AND INNOVATIONS
Rusagro approved the digital transformation
strategy to introduce automation systems
and develop innovative solutions for process
optimisation in each business segment. This
strategy is an integral part of the overall
development strategy of each business. Higher
profits from cost reductions, improved risk
control and enhanced productivity against
lower human errors and better decision-
making are the shared objectives of the digital
transformation strategy for all of the Company's
business segments.
For the next phases of the strategies to be
successfully implemented in 2021, it was
decided to centralise the IT service and create
a company called Rusagro-Technology. A
Mathematical Simulation Service was also set
up to support the Company's objectives in
working with technologies such as computer
vision – at the end of the year there were 10
people in the team with 22 projects in the
pipeline.
Rusagro's key digital projects
STRATEGY ACHIEVEMENTS
FOR2017–2021
Optimum routing of vehicles on the field
Lower influence of human error in determining the vehicles
direction of travel in the field, POL savings and higher
productivity on the back of optimised distances travelled
Planning algorithm for own and hired trucks
Better turnaround and optimised logistics services
20222021
20222021
AGRICULTURE BUSINESS
Intelligent management system for raw material
procurement and delivery
Reduced costs by optimising the sunflower transport cost and
timing, as well as its storage and processing locations
20222021
Integrated business planning for sales
Lower production costs by reducing overstocked producer
goods and improving the accuracy of sales forecasting
20222020
OIL AND FATS BUSINESS
Logistics optimisation project team
Reduced logistics costs for feed, livestock, personnel, and
improved logistics services
20232020
Video analytics and mobile application projects team
Improved production performance in livestock production
against prompter and more accurate management data
20232021
MEAT BUSINESS
Instrumental condition monitoring of equipment
Obtaining objective digital information on ongoing processes
20232021
Introduction of machine learning, computer vision
and artificial intelligence tools
Higher labour productivity
20272023
SUGAR BUSINESS
41
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DEVELOPMENT STRATEGY
STRATEGIC REPORT
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DEVELOPMENT
OF HUMAN
CAPITAL
Human capital development is central to
the sustainable growth of all Rusagro's
business segments. Between 2017 and
2021, the Company increased investments
in training and development seven-fold,
from RUB 2.6 mn to RUB 17.1 mn, having
built an effective system to support
employees at all levels and positions every
step of their way.
The institute of internal instructors
established in 2017 already had 585
employees in 2021 (+13% from 2020), and
the number of mentors grew to 1,133 (+23%
from 2020). The distance learning system
enabled Rusagro to markedly improve
its training performance: the number of
employees trained almost tripled over
the past five years – from 7,581 to 19,673.
Moreover, there was a significant increase
in the number of man-courses after the
launch of the SAP SuccessFactors platform
in 2020. For example, in 2017 this figure
stood at only 5,214 man-courses, whereas
in 2020 it was already at 42,808. In 2021,
we hit a record high of 87,344 man-courses
completed.
KEY BLOCKS OF THE TRAINING AND DEVELOPMENT SYSTEM
‘17 ‘18 ‘19 ‘20
5,214
9,717
10,314
42,808
7,581
13,715
15,561
18,293
Number
of man-courses taken
Number
of employees trained
‘21
19,673
87,344
‘17 ‘18 ‘19
‘20 ‘21
2.6
3.8
7. 5
9.3
17.1
STAFF TRAINING
RESULTS
STAFF TRAINING INVESTMENTS
RUB mn
1
Transfer ofbest
practices
andaffirmation
frommentors
MENTORING
INSTITUTE
2
INTERNAL
INSTRUCTOR
INSTITUTE
Training and sharing
of best practices
between employees
3
DISTANCE
LEARNING SYSTEM
Electronic
information
educational
environment
4
EXTERNAL
TRAINING
Academic training
and short-time
courses
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03
REVIEW OF RUSAGRO'S
BUSINESS RESULTS
FOR2021
ANNUAL REPORT 2021
ABOUT RUSAGRO
01
STRATEGIC
REPORT
02
CONSOLIDATED
FINANCIAL RESULTS
04
CORPORATE
GOVERNANCE
05
APPENDICES
06
AGRICULTURE BUSINESS
45 Overview of the Russian agricultural
market in2021
51 Rusagro's Agriculture Business
results in 2021
OIL AND FATS BUSINESS
61 Overview of the Russian oil
and fats products market in 2021
71 Results of Rusagro’s Oil
and Fats Business in 2021
MEAT BUSINESS
82 Overview of the Russian
pork market in 2021
86 Results of Rusagro’s
Meat Business in 2021
SUGAR BUSINESS
96 Overview of the Russian
sugar market in 2021
100 Results of Rusagro’s
Sugar Business in 2021
REVIEW OF RUSAGRO'S BUSINESS RESULTS
RUSAGROGROUP.RU/EN

Agriculture
In 2021, Rusagro farmed 604 ths
hectares and grew 5 mn tonnes
ofagricultural products: sugar beets,
grains and oilseeds.
BUSINESS

Overview
Due to weather conditions in 2021, Russian agricultural
agricultural producers came against the need to reseed
winter crops. This led to a decrease in the wheat and barley
yields by 13.0 mn tonnes (–12%) and a 9.4 mn tonnes (–21%)
reduction in exports of these crops. The latter was also
added up by the imposition of duties. Market prices rose
for the second consecutive year for all the major crops,
including maize, sunflower, soybeans and sugar beet.
↑15%
14.4
ths RUB/t, excl. VAT
AVERAGE PRICE
OF WHEAT IN RUSSIA
↓12%
76
mn tonnes
HARVEST OF WHEAT
IN RUSSIA
↑14%
39
mn tonnes
HARVEST OF SUGAR
BEET IN RUSSIA
↑1%
16
mn tonnes
HARVEST
OFSUNFLOWER
INRUSSIA
No.
4
RUSAGRO AMONG
RUSSIA'S LARGEST
AGRICULTURAL LAND HOLDERS
↓21%
31
mn tonnes
WHEAT EXPORTS
FROM RUSSIA
Interactive
version
of the Russian
agricultural market
in2021
45
Company's Business / AGRICULTURE BUSINESS
REVIEW OF RUSAGRO'S BUSINESS RESULTS
RUSAGROGROUP.RU/EN

PRODUCTION
Rosstat's preliminary figures indicate that the
production of wheat, barley and maize in the
2021/2022 season was set at 108.6 mn tonnes,
10% (–12.1 mn tonnes) below the season earlier.
Such drop was caused by a decline in lower
wheat and barley harvest after a particularly
productive previous season, by 12% (–10.0 mn
tonnes) to 75.9 mn tonnes and by 14% (–3.0 mn
tonnes) to 18.0 mn tonnes, respectively.
Furthermore, both the area sown with these
crops and their yields decreased due to the
difficult wintering conditions, which led to a
high percentage of winter crops dying and
being reseeded by spring crops, mainly oilseeds.
Maize demonstrated a positive trend, with a 6%
increase in harvest (+0.8 mn tonnes), and stood
at 14.6 mn tonnes.
Comment:
This market review covers fewer than all
crops grown in Russia and includes the
crops holding a significant share of the
gross yield of Russian producers, including
Rusagro. Thus, the Report addresses sugar
beet, as well as wheat, barley and maize as
grain crops, and sunflower and soybeans as
oilseeds. Data for other crops can be found
on the Rosstat website.
↓12%
76
mn tonnes
WHEAT HARVEST
INRUSSIA IN 2021
↓14%
18
mn tonnes
BARLEY HARVEST
INRUSSIA IN 2021
↑6%
15
mn tonnes
MAIZE HARVEST
INRUSSIA IN 2021
Source: Rosstat (Russian Federal Service for State Statistics) (preliminary data)
GROSS YIELD OF GRAIN CROPS
INRUSSIA
mn tonnes
AREA UNDER GRAIN CROPS
IN RUSSIA
mn ha
GRAIN CROPS YIELDS
IN RUSSIA
tonnes/ha
‘21/‘22‘20/‘21‘19/‘20‘18/‘19‘17/‘18
Wheat
Barley
Maize
119.8
100.5
109.2
120.7
−10%
108.6
86.0
72.1
74,5
85.9
75.9
(−12%)
20.6
17.0
20,5
20.9
18.0
(−14%)
13.2
11.4
14,3
13.9
14.6
(+6%)
‘21/‘22‘20/‘21‘19/‘20‘18/‘19‘17/‘18
39.0
38.0
39.5
40.8
−2 %
39.9
27.9
27.3
28.1
29.4
28.8
(−2%)
8.0
8.3
8.8
8.5
8.2
(−4%)
3.0
2.5
2.6
2.9
3.0
(+3%)
Wheat
Barley
Maize
‘21/‘22‘20/‘21‘19/‘20‘18/‘19‘17/‘18
4.9
4.8
5.7
5.1
5.2
(−9%)
2.6
2.2
2.4
2.5
2.3 (+3%)
3.1
2.7 2.7
3.0
2.7
(−9%)
Wheat
Barley
Maize
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PRODUCTION
Preliminary sunflower and soybean harvest
data for the 2021/2022 season indicate a 15%
increase of (up 2.7 mn tonnes) in the aggregate,
which totalled 20.3 mn tonnes. The sunflower
output posted a considerable rise of 17% (up 2.2
mn tonnes) and reached 15.5 mn tonnes, fuelled
by the growing area under this crop (+14%) due
to the reseeding of dead winter crops.
GROSS YIELD OF OIL CROPS
INRUSSIA
mn tonnes
AREA UNDER OIL CROPS
IN RUSSIA
mn ha
YIELD OF OIL CROPS
IN RUSSIA
tonnes/ha
↑17%
16
mn tonnes
SUNFLOWER SEEDS
HARVEST IN RUSSIA IN 2021
‘17/‘18
14.1
16.8
19.7
17.6
+15%
20.3
Sunflower seeds
‘18/‘19 ‘19/‘20 ‘20/‘21 ‘21/‘22
10.5
12.8
15.4
13.3
15.5
(+17%)
3.6
4.0
4.4
4.3
4.8
(+10%)
Soybeans
‘17/‘18
10.6
11.1
11.7
11.4
+12%
12.8
‘18/‘19 ‘19/‘20 ‘20/‘21 ‘21/‘22
8.0
8.2
8.6
8.5
9.7
(+14%)
2.6
2.9
3.1
2.9
3.1
(+7%)
Sunflower seeds Soybeans
1.5
1.6
1.8
1.6
1.6
(+3%)
1.4
1.5
1.6
1.6
1.6
(0%)
‘17/‘18 ‘18/‘19 ‘19/‘20
‘20/‘21 ‘21/‘22
Sunflower seeds Soybeans
After a five-year record low harvest in the
2020/2021 season, when agricultural produc-
ers encountered adverse weather conditions,
the sugar beet crop showed a 14% increase (up
4.8 mn tonnes) in gross output and stood at to
38.7 mn tonnes. The increase covered both crop
yields (+10%, up to 40.6 t/ha) and cropped area
(+8%), helped by the more stable sugar prices in
Russia.
GROSS YIELD OF SUGAR BEET
IN RUSSIA
mn tonnes
AREA UNDER SUGAR BEET
IN RUSSIA
mn ha
YIELD OF SUGAR BEET
IN RUSSIA
tonnes/ha
‘17/‘18
1.20
1.13
1.14
0.93
+8 %
1.00
‘18/‘19 ‘19/‘20 ‘20/‘21 ‘21/‘22
+10 %
44.2
38.1
48.0
37.0
40.6
‘17/‘18 ‘18/‘19 ‘19/‘20
‘20/‘21 ‘21/‘22
↑14%
39
mn tonnes
SUGAR BEET HARVEST
IN RUSSIA IN 2021
‘17/‘18
51.9
42.1
54.4
33.9
+14 %
38.7
‘18/‘19 ‘19/‘20 ‘20/‘21 ‘21/‘22
Source: Rosstat (Russian Federal Service for State Statistics) (preliminary data)
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KEY PLAYERS
According to BEFL – accounting and consulting
company, five largest farmland owners
controlled 3.8 mn ha of agricultural lands as of
May 2021. During the year, they increased their
land bank by 32 ths ha (+1%). Russia's largest
meat producer, Miratorg, tops the list with an
estimated land bank of 1,047 ths ha. Rusagro
ranked fourth with a land bank of 637 ths ha. As
of the end of 2021, the Company had 689 ths ha
of land under management, and this figure will
be taken into account in the May 2022 ranking.
Source: BEFL, May 2021
No.
4
RUSAGRO’S PLACE
BYTHEAGRICULTURAL LAND BANK
SIZE IN RUSSIA AS OF MAY 2021
No.
4
1.
Including Agrokultura.
1,047
Miratorg
865
Prodimex
1
660
Agrocomplex
630
EkoNiva-APK
Russia's top 5
landowners as
of May 2021, ths ha
637
Rusagro
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In 2021, exports of the main crops considered
herein sat at 39.9 mn tonnes, down 22% (down
11.2 mn tonnes) from 2020. For example, ship-
ments of wheat, barley and maize fell by 9.4mn
tonnes (–20%) and those of sunflower and
soybean – by 1.8 mn tonnes (–63%). Exports
ofwheat dropped the most (down 8.1mn
tonnes, or –21%) as a result of lower yields
and government restrictions, as did sunflower
exports (down 1.3 mn tonnes, or –96%).
In 2021, Turkey, with a 21% share, topped the list
of Russia's biggest grain importers. Volume of
shipments thereto totalled 8.0 mn tonnes (+1%).
Even with purchase volume reduced by24%,
Egypt was the second significant buyer, pur-
chasing 5.1 mn tonnes of grain crops in there-
porting period.
The main crop imported in Russia is soybeans –
1.8 mn tonnes of this crop were imported in2021,
down 11% (–0.2 mn tonnes) from ayear earlier.
The downward trend is driven bythehigh level
of domestic oilseed production, the postponed
commissioning of new oil-extraction capacities,
and the simplied import procedure of geneti-
cally modified meal into Russia. The main im-
porters of soybeans are Brazil (46% of supplies)
and Paraguay (40%). The volume of all crops
imported into Russia was 2.1 mn tonnes (–13%).
Governmental restrictions
In 2021, Russia imposed a number of export
restrictions on grains and oilseeds. In addi-
tion to the quota of 17.5 mn tonnes for grain
exports, there were duties on wheat, corn
and barley. Duties on sunflower, soybean
and rapeseed were in effect in 2021 and will
continue to be so until August 2022.
EXPORTS AND IMPORTS
RUSSIAN EXPORT VOLUME
OF GRAIN CROPS
mn tonnes
BREAKDOWN
OF GRAIN EXPORTS
BYDESTINATION IN 2021
%
‘17
42.8
54.2
39.0
48.4
−20%
38.9
‘18 ‘19
‘20 ‘21
33.0
44.0
31.9
38.6
30.5
(−21%)
4.6
5.5
4.0
6.0
4.7
(−21%)
5.2
4,8
3.1
3.8
3.7
(−2%)
Wheat
Barley Maize
21 (+4 p. p.)
13
(−1 p. p.)
3 (0 p. p.)
2 (−2 p. p.)
Turkey
Egypt
Others
Azerbaijan
Bangladesh
62 (−1 p. p.)
Source: Federal Customs Service of Russia
(preliminary data)
RUSSIAN EXPORT VOLUME
OF OIL CROPS
mn tonnes
‘17
0.8
1.1
1.6
−63%
‘18 ‘19
‘20 ‘21
0.3
0.1
0.7
1.4
0.1
(−96%)
0.5
1.0
0.9
1.4
1.0
(−31%)
Sunflower seeds
Soybeans
1.0
2.8
↓21%
31
mn tonnes
WHEAT EXPORTS
FROM RUSSIA IN 2021
↓11%
2
mn tonnes
SOYBEAN IMPORTS
TO RUSSIA IN 2021
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PRICES
In 2021, the average annual price of agricultural
products in Russia kept rising for the second
year in a row. Thus, prices for wheat, barley and
maize rose by 15% (to 14.4 ths RUB/t), 28% (to
12.8 ths RUB/t) and 20% (to 14.4 ths RUB/t)
respectively. The key contributors to this trend
were a poor wheat and barley harvest in the
2021/2022 season and higher world prices
resulting from lower production due to adverse
weather conditions, with the latter being partly
offset by grain export duties.
Source: Rosstat (Russian Federal Service
forState Statistics) (preliminary data
Source: APK-Inform
PRICES FOR GRAIN CROPS
IN RUSSIA
ths RUB/t, excl. VAT
7.2
9.7
9.8
10.0
12.8
(+28%)
8.0
9.8
10.8
12.5
14.4
(+15%)
‘17 ‘18 ‘19
‘20 ‘21
Wheat Barley Maize
7.8
9.3
10.1
12.0
14.4
(+20%)
PRICES FOR OIL CROPS
IN RUSSIA
ths RUB/t, excl. VAT
PRICES FOR SUGAR BEAT
IN RUSSIA
ths RUB/t, excl. VAT
23.4
25.7
22.3
26.9
43.7
(+63%)
17.4
22.1
17.3
23.9
41.4
(+73%)
‘17 ‘18 ‘19
‘20 ‘21
Sunflower seeds Soybeans
2.2
2.6
1.9
2.3
3.3
‘17 ‘18 ‘19
‘20 ‘21
+48%
Oil crops showed an even higher rate of price
escalation year-on-year. Domestic sun-
flower prices went up by 73% and reached
41.4thsRUB/t, while soybean prices rose by
63% and stood at 43.7 ths RUB/t. That also
related the global market situation, involving
higher palm oil prices, growing demand in China
due to the gradual recovery of pork production
and the loss of the rapeseed crop in Canada due
to bad weather conditions.
Meanwhile, after a record low in sugar beet
prices in 2019, the prices were trending upwards
for the past two years, following a decline in
crop volumes amid adverse weather conditions
in 2020 and a subsequent rise in sugar prices.
In 2021, prices witnessed their highest level in
five years. According to preliminary data from
Rosstat, the price of sugar beet spiked by 48%
over the year and sat at 3.3 ths RUB/t annual
average.
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Rusagro's
Operating results
Financial results
Rising market prices and improved sugar beet harvest caused Rusagro's Agriculture Business
to post record high revenues in 2021. Revenues increased by 22% and amounted to RUB41.9bn
(up RUB 7.5bn) and adjusted EBITDA went up by 53% (up RUB 8.1 bn) and stood at RUB 23.3 bn.
Driven by the sales of 2020 products, business profit margin reached 56% (+11 p.p.).
↑8%
689
ths ha
FARMING
LAND AREA
No.
4
BY THE SIZE
OF RUSSIAN LAND BANK
↑13%
4.8
mn tonnes
SALES VOLUMES
OFAGRICULTURAL CROPS
15.2
'20
6.1
'19
5.0
'18
0.1
'17
ADJUSTED EBITDA
RUB bn
23.3
'21
↑22%
41.9
RUB bn
REVENUES
↑11p.p.
56
ADJUSTED EBITDA MARGIN
↑53%
23.3
RUB bn
ADJUSTED EBITDA
Agriculture Business
results in 2021
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BUSINESS OVERVIEW
‘17
665
675
652
687
+8%
689
‘18 ‘19 ‘20 ‘21
551
567
582
608
604
(+8%)
114
108
70
78
86 (+10%)
Arable land Other land
In 2021, the total area of land under Rusagro’s management by the end of
the year amassed 689 ths ha, increasing by 52 ths ha (+8%) due to a land
lease agreement in the Saratov Region. The share of arable land is 88%. The
expansion of the land bank was mainly hindered by the major increase in
land prices in Russia against the background of high prices for agricultural
products and the availability of spare capital in the country.
The total storage capacity, including four elevators and five grain storage
sites, totalled 997 ths tonnes (+0%).
Note: Arable land includes fallow
land and layland
↑8%
604
ths ha
AREA OF RUSAGRO’S
ARABLE LAND IN 2021
CULTIVATION
AND SOWING
CAMPAIGN
CULTURAL TREATMENT
AND TOP DRESSING
HARVESTING
AND STORAGE
SALES
PRODUCTS
LEGAL STRUCTURE OF LANDS
Rusagro's agricultural land ownership structure changed in 2021. As at the
end of 2021, Rusagro owned half (50%) of all the Company's agricultural
land. With short-term land leases in the Saratov Region, the proportion of
land owned by the Company shrank from 54% to 50%. Other reasons for
the change in the lease share were the renunciation of leasehold rights on
several inefficient land plots and the acquisition of ownership in a number
of leasehold land plots with common ownership.
LEGAL STRUCTURE
OF RUSAGRO’S LAND BANK
%
RUSAGRO’S
LAND BANK AREA
ths ha
‘21‘20‘19‘18‘17
44
42
40
40
37
(−3 p. p.
)
7
7
6
6
13
(−4 p. p.)
49
51
54
54
50
(−7 p.p.
)
Ownership
Long-term
lease
Short-term
lease
Read more about the environmental impact
of the Agriculture Business and relevant mitigation
measures in ESG Report
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PRIMORYE
TERRITORY
BUSINESS OVERVIEW
REGIONAL STRUCTURE OF ARABLE LANDS
TAMBOV
REGION
BELGOROD
REGION
VORONEZH
REGION
SARATOV
REGION
OREL
REGION
KURSK
REGION
23
Tambov
Region
43
Belgorod
Region
14
Primorye Territory
4
Kursk Region
7
Saratov Region
2
Voronezh Region
Most of Rusagro's agricultural land is located in
the Central Black Earth Region of Russia, mainly
characterised by highly fertile chernozem black
soils. The largest areas of arable land are in Bel-
gorod and Tambov Regions – 257 ths ha (+1%, or
3 ths ha) and 139 ths ha respectively by the end
of 2021. The Company's Agriculture Business
has 86 ths ha (+2%, or 2 ths ha) of arable land
in the Primorye Territory under management. In
2021, the Company leased land in the Saratov
Region (39 ths ha of arable land).
REGIONAL ARABLE LAND
STRUCTURE IN 2021
%
7
Orel Region
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INVESTMENTS
The major investment projects
RUSAGRO’S INVESTMENTS
IN AGRICULTURE BUSINESS
RUB bn
‘17
5.1
6.2
2.0
2.0
+31%
2.7
‘18 ‘19
‘20 ‘21
↑31%
2.7
RUB bn
RUSAGRO'S INVESTMENTS
INAGRICULTURE BUSINESS
Project
ACQUISITION
OFMACHINERY
FOR 44 THS HA
OF ARABLE LAND
IN THE SARATOV
REGION
Project
BATCHING PLANT
CONSTRUCTION
Investment volume
in2021:
0.6 RUB bn, excl. VAT
Investment volume
in2021:
0.3 RUB bn, excl. VAT
Purpose:
procurement of necessary ma-
chinery for the new arable land
to enable cultivation of crops,
compliance with the agronomic
time requirements and crop
rotation
Purpose:
mitigation of risks of poor
quality crop treatment through
technology-related errors
Implementation period:
June 2021
to December 2022
Implementation period:
October 2020
to May 2022
Project cost:
1.6 RUB bn, excl. VAT
Project cost:
0.4 RUB bn, excl. VAT
Comment:
The change in the crop rotation pattern
in2021 was brought about by the aban-
donment of barley cultivation due to its
low profit margin relative to other crops
(3%ofthe sown area in 2020), the reseeding
of some amount of wheat with sunflower
and the increase in fallow areas as new land
plots were leased in the Saratov Region.
STRUCTURE OF RUSAGRO’S SEEDS
%
Sugar beet
15 (
0 p. p.)
Sunflower
seeds
5 (+1 п. п.)
Soybeans
33 (+4 p. p.)
Grain crops
34 (−10 p. p.)
Other crops
1 (+0 p. p.)
Wheat
29 (−6 p. p.)
Maize
5 (−0 p. p.)
Layland
8 (+4 p. p.)
Fallow land
4 (+0 p. p.)
Oilseeds
38
(+4 p. p.)
Rusagro's 2021 investments in development and
maintenance of the Agriculture Business to-
talled RUB 2.7 bn, up 31% year-on-year. Higher
investments in business development were
related to the purchase of machinery to work
on a new land area in the Saratov Region and
the implementation of a batching plant project
in the Central Region. Meanwhile, the mainte-
nance required more funds given the need to
renew soil preparation and fertiliser equipment,
as well as to renovate passenger and light car
fleet. According to the year-end results, 66% of
investments were absorbed by development
projects.
BUSINESS OVERVIEW
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IT AND INNOVATIONS
In 2017–2018, the Rusagro's Agriculture Business
developed a digital management transformation
strategy for 2018–2022 to increase efficiency along
the entire production chain. In 2021, the strategy's
goals were accomplished through the development
and implementation of five key planning algorithms
for business operations, which are an integral part
ofthe overall smart farming system of the Company.
CROP ROTATION
PLANNING
Strategic planning
and budgeting algorithm
Profit maximisation by choosing the best sequence of
crops
20222021
Automation of batching plants
Minimisation of errors in mother liquor technology
andmisappropriation of crop protection agents (CPA)
20222020
FIELD PREPARATION
AND HANDLING
Planning algorithm
for process operations
Increased yields as a result of precise and timely adher-
ence to process operations
20222021
HARVESTING
Planning algorithm
for harvesting operations
Increased gross yields through precise harvest timing
20222021
CROP LOGISTICS
Planning algorithm
for own and hired trucks
Finished goods transportation time and cost opti-
misation by increasing the transport turnover rate
andstreamlining the logistics service
20222021
PLACEMENT AND SALE
OF FINISHED PRODUCTS
Planning algorithm for the placement
and sales of finished products
Higher revenues through better rotation of storage
locations and planning of the sales schedule, as well as
logistics costs optimisation
20232022
Digital fields
Rusagro's field management automation
function is realised through digital field
twins containing information on electron-
ic field boundaries, crop history, handling
operations and nutritional characteris-
tics of the soil in the fields. Operational
field monitoring tasks are addressed by
analysing the satellite image-based NDVI
index and field scouting by agriscientists.
This optimises the use of machinery and
vehicles, crop area, fertiliser and CPA
quantities and application zones, and
allows for better control over the timing
sowing and harvesting.
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IT AND INNOVATIONS
Soil fertility recovery project
In 2021, Rusagro initiated a project to improve soil fertility based on fertility models generated for
each field in the study area with a view to increase the yield of cultivated crops. Such models will
represent the set of agronomically relevant soil properties and regimes which allow for most efficient
use of land resources and maximise yields without loss of quality. The first models were generated
following the year-end results – Rusagro will start the roll-out under these models from the beginning
of the 2022 field season. Model generation is expected to cover more fields in 2022.
AssistAgro is a machine vision technology for
agronomic decision-making
AssistAgro
1
was established in 2021 to develop crop management
technologies at Rusagro and to offer these technologies to the market.
AssistAgro mainly deals with the development of an automatic open
field plant diagnostic system based on photo analysis, yield forecasting,
recommendations for increasing returns per hectare and robot-assisted
operations management. With remote diagnostics and precision farming
tools, agricultural companies will also be able to improve control over
their carbon footprint and impact on soil fertility.
In 2021, the Company received Skolkovo resident status and
accreditation from the Ministry of Digital Development, Communications
and Mass Media of the Russian Federation as an IT company. In
December 2021, AssistAgro, together with Rusagro-Invest, won a
grant to implement and refine artificial intelligence in crop production
from the Skolkovo Foundation (VEB.RF Group) under the federal
Artificial Intelligence project of the Digital Economy of the Russian
Federation national programme. AssistAgro's project to introduce a
weed identification and crop density counting solution received a highly
positive evaluation by the competition members.
AssistAgro's first product, an automated field scouting and digital
agri-service management system, is now available to the market. The
second product – an advisory system with yield and profit forecasts for
different technology scenarios – is planned to be presented by the end
of next year, and an automated machinery and vehicles control solution
– in another year.
SoyuzSemSvekla genetics and breeding centre on accelerated creation of
advanced sugar beet hybrids
Together with Schelkovo Agrochem, Rusagro has been involved in the development of yield-
enhancing sugar beet hybrids since 2017. SoyuzSemSvekla, a genetics and breeding centre,
was opened in the Voronezh Region in 2019. The Centre focuses on creating new high-yielding,
disease-resistant sugar beet hybrids that are equal in basic biological and morphological
characteristics. The sugar beet hybrids of our own breeding are registered in the National Register
of Breeding Achievements Approved for Use in Russia. SoyuzSemSeekla has been selling the
seeds of its hybrids in all key beet-growing regions since 2021.
SoyuzSemSvekla genetics and breeding centre works in the framework of the Federal Scientific
and Technical Programme for the Development of Agriculture for 2017–2025, the Sub-programme
for the Development of Selection and Seed Production of Sugar Beets in the Russian Federation
according to the designed comprehensive scientific and technical project “Development of
Highly Competitive Sugar Beet Hybrids of Domestic Breeding and the Organisation of their
Seed Production System”. In 2019, a commission of the Russian Ministry of Agriculture qualified
this project for governmental support, which was received in 2020–2021. SoyuzSemSvekla was
granted Skolkovo resident status in 2021.
A video clip about the AssitAgro project
can be watched on YouTube
1.
AssistAgro LLC is not included in the Group's legal structure; the company's
founders are Vadim Moshkovich and Maxim Basov.
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OPERATING RESULTS
PRODUCTION
The gross grain harvest suffered a decline upon
the refusal to sow barley (18 ths ha in 2020)
and unfavourable weather conditions for winter
crops: due to extreme wintering conditions, as
well as low moisture levels and high tempera-
tures during the grain filling period, wheat yields
fell from 5.1 to 4.1 t/ha. As a result, the wheat
production totalled 713 ths tonnes (–29%)
and barley – 2 ths tonnes (–98%). However,
the Company still boosted the gross harvest
ofmaize by 51% (to 163 ths tonnes) byreducting
its sowing period and optimising its harvesting
time.
Another positive development was associated
with higher gross yield of oil crops, which was
attained through the expansion of planting
area. Thus, the soybean output rose by 21% (+60
ths tonnes) and the sunflower output – by 7%
(+5 ths tonnes) owing to the 22% (+35 ths ha)
and 26% (+6 ths ha) increase, respectively, in
planting areas under these crops. The growth of
the soybean crop was restrained by high tem-
peratures and lack of rainfall during the soybean
blossom period, and that of sunflower – by its
use as a crop to reseed winter wheat die-off
without basic autumn tillage. This reduced
soybean yield by 2% to 1.7 t/ha and sunflower
yield by 15% to 2.5 t/ha.
RUSAGRO'S SUGAR BEET HARVEST
ths tonnes
‘17
3,509
3,487
3,932
2,889
+26%
3,637
‘18 ‘19 ‘20 ‘21
39.1
45.1
45.1
34.6
40.5
(+17%)
Yield, t/ha
‘17 ‘18 ‘19 ‘20 ‘21
Soybean
yield
Sunflower
yield
2.6
2.3
2.3
2.9
2.5
(−15%)
1.8
1.7 1.7
1.8
1.7
(−2%)
‘17
224
329
379
349
+19%
414
Gross harvest
of soybean
‘18 ‘19 ‘20 ‘21
184
267
291
282
341 (+21%)
40
62
88
67
72 (+7%)
Gross harvest
of sunflower
‘17
1,150
1,062
1,003
1,193
877
‘18 ‘19 ‘20 ‘21
731
675
712
1,005
713
(−29%)
122
186
104
108
163
(+51%)
297
202
187
81
2
(−98%)
Gross
harvest
of wheat
Gross
harvest
of maize
Gross
harvest
of barley
−26%
RUSAGRO’S HARVEST
OF OIL CROPS
ths tonnes
GROSS HARVEST
OF OIL CROPS
t/ha
RUSAGRO’S HARVEST
OF GRAIN CROPS
ths tonnes
GROSS HARVEST
OF GRAIN CROPS
t/ha
‘17 ‘18 ‘19 ‘20 ‘21
Wheat
yield
Maize
yield
4.0
4.1
4.1
5.1
4.1
(−20%)
6.7
5.2
3.7
5.3
(+46%)
5.2
Rusagro's 2021 total output was 4,956 ths
tonnes, up 494 ths tonnes (+11%) from a
year earlier. The higher figures were largely
attributed to the increased gross sugar beet
yield, amounting to 3,637 ths tonnes, up 748 ths
tonnes (+26%) year-on-year. Such results were
achieved through rising crop yield to 40.5 t/ha
(+17%) thanks to wind erosion control activities
and record yields in recent years on irrigated
land. The area under sugar beet expanded by
8% (+6 ths ha) and amassed 90 ths ha.
57
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OPERATING RESULTS
SALES
RUSAGRO’S
SALES VOLUME
mn tonnes
‘17
5.2
4.4
5.4
4.3
+13%
4.8
‘18 ‘19
‘20 ‘21
4.0
3.5
3.9
3.0
3,6 (+22%)
1.0
0.8
1.3
0.9
0.8 (−8%)
0.3
0.1
0.3
0.4
0.4 (−5%)
Sugar beet
Grain crops
Oilseeds
710
105
193
Wheat
Maize Barley
510
831
653
768 (+17%)
109
156
149
71 (−52%)
152
278
122
10
(−91%)
‘17 ‘18 ‘19 ‘20 ‘21
−8%
1,008
771
1,265
925
849
169
84
Soybeans
Sunflower seeds
91
225
331
330 (0%)
54
80
78
59 (−24%)
‘17 ‘18 ‘19 ‘20 ‘21
−5%
253
144
305
409
390
RUSAGRO’S SALES VOLUME
OF GRAIN CROPS
ths tonnes
RUSAGRO’S SALES VOLUME
OF OIL CROPS
ths tonnes
In 2021, sales volumes of Rusagro's Agriculture
Business climbed by 13% and reached to 4,838
ths tonnes compared to 2020. The positive
dynamics is associated with the growth of the
sugar beet harvest and a higher level of wheat
carry-over at the end of 2020. Sales of sugar
beet went up by 22% (+637 ths tonnes) and
wheat – by 17% (+114 ths tonnes) year-on-year.
Grain sales, which fell by a total of 8% (–76
ths tonnes), were affected by the abandon-
ment of barley cultivation as a relatively
low-margin crop and the transfer of some
maize volumes to 2022 in expectation of
better prices. Barley sales fell by 91% (–112
ths tonnes) and maize – by 52% (down 78 ths
tonnes) compared to the previous year.
Oil crops sales also declined (–5%, down 19
ths tonnes). Sunflower sales volumes dropped
by 24% (down 18 ths tonnes) year-on-year
due to lower sunflower carry-overs at the end
of 2020 and the transfer of some volumes to
2022 due to the expectation of higher prices.
The level of soybean sales remained roughly
at the previous year's level.
All sugar beet (100%) of the Agriculture Busi-
ness is sold to Rusagro's sugar plants. Part
of the grain crops goes to the Meat Business
for feed production – in 2021, the share of
internal sales slipped down from 37% to 18%
due to heightened third-party demand. The
share of oilseeds supplied to Rusagro's plant
spiked from 3% to 15% upon launching an oil
extraction plant to process soybeans in the
Primorye Territory.
Domestic sales became more profitable
against the backdrop of export restrictions,
while export shipments of agricultural prod-
ucts fell by 63% (down 174 ths tonnes). For
example, 87 ths tonnes of grain and 14 ths
tonnes of oilseeds were sold outside Russia –
down 26% and 91% respectively from the year
earlier. All the grain crops were sold to Asian
countries – Japan, China, and Korea.
EXPORT VOLUME OF RUSAGRO'S
AGRICULTURAL PRODUCTS,
ths tonnes
‘17
56
203
288
275
−63%
101
‘18 ‘19
‘20 ‘21
56
203
259
118
87 (−26%)
29
157
14 (−91%)
Grain crops
Oil crops
58
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FINANCIAL RESULTS
Rusagro's agricultural business posted record
financial performance in 2021. Due to favourable
pricing conditions – market prices for agri-
cultural commodity prices were trending
upwards for the second consecutive year – and
a bumper sugar beet harvest, revenues stood
at RUB41.9bn, up 22% (up RUB 7.5 bn) above
the previous year. The Company increased its
EBITDA margin from 44% to 56% by selling
asignificant volume of products at 2020
production cost. As a result, adjusted earnings
before interest, taxes, depreciation, and amorti-
sation (EBITDA) went up by53% (up RUB 8.1 bn)
to RUB 23.3 bn.
↑22%
41.9
RUB bn
REVENUES OF RUSAGRO’S
AGRICULTURE BUSINESS
IN2021
↑53%
23.3
RUB bn
ADJUSTED EBITDA OF
RUSAGRO’S AGRICULTURE
BUSINESS IN 2021
↑11 p.p.
56
ADJUSTED EBITDA
MARGING OF RUSAGRO’S
AGRICULTURE BUSINESS
IN2021
‘17
18.8
20.8
25.8
34.3
+22%
41.9
‘18 ‘19
‘20 ‘21
24
24
44
56 (+11 p.p.)
‘17
0.1
5.0
6.1
15.2
+53%
23.3
‘18 ‘19
‘20 ‘21
Adjusted EBITDA margin, %
REVENUES OF RUSAGRO’S
AGRICULTURE BUSINESS
RUB bn
ADJUSTED EBITDA OF RUSAGRO’S
AGRICULTURE BUSINESS
RUB bn
59
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Oil
and Fats
BUSINESS
In 2021, Rusagor’s Oil and Fats
Business processed 1.4 mn tonnes
ofsunflower seeds cultivated bylocal
agricultural producers.

Overview
A lower sunflower harvest in 2020 (–13% compared to 2019)
drove the sunflower oil production in the 2020/2021 season down
by9%. This, together with strong global demand for vegetable
oils as thefinal carry-overs run out, improved domestic sunflower
oil pricing. Russia imposed restrictive measures on the export
ofsunflower seeds and sunflower oil and froze maximum retail
prices to curb the price development.
↓9%
5.3
mn tonnes
PRODUCTION
OF CRUDE SUNFLOWER
OIL IN RUSSIA
IN 2020/2021 SEASON
↑6%
1.3
mn tonnes
PRODUCTION
OF INDUSTRIAL FATS
IN RUSSIA IN 2021
↑2%
1.9
mn tonnes
PRODUCTION
OF PACKAGED
VEGETABLE OIL
IN RUSSIA IN 2021
↓19%
2.7
mn tonnes
EXPORTS OF CRUDE
SUNFLOWER OIL
IN RUSSIA
IN 2020/2021 SEASON
13
RUSAGRO'S SHARE
OF SUNFLOWER OIL
PRODUCTION IN RUSSIA
IN 2020/2021 SEASON
22
RUSAGRO'S SHARE
OF INDUSTRIAL FATS
PRODUCTION
IN RUSSIA IN 2021
49
RUSAGRO’S SHARE
IN CONSUMER
MARGARINE
PRODUCTION
IN RUSSIA IN 2021
↑60%
89.1
ths RUB/t
AVERAGE PRICE
OF CRUDE SUNFLOWER
OIL IN RUSSIA IN 2021
of the Russian oil and fats
products market in 2021
61
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CRUDE VEGETABLE OIL INDUSTRIAL FATS
PRODUCTION
PRODUCTION OF CRUDE
SUNFLOWER OIL IN RUSSIA
1
mn tonnes
↓9%
5.3
mn tonnes
PRODUCTION OF CRUDE
SUNFLOWER OIL
IN RUSSIA
IN 2020/2021 SEASON
↑6%
1.3
mn tonnes
PRODUCTION
OF INDUSTRIAL FATS
IN RUSSIA IN 2021
Source: expert assessment based on data
from the All-Russian Union of Oils and Fats
and the Federal Customs Service of Russia
PRODUCTION OF INDUSTRIAL FATS
IN RUSSIA
mn tonnes
‘17
1.2 1.2
1.3 1.3
+6%
1.3
‘18 ‘19 ‘20 ‘21
Milk fat
substitutes
35% 28%
25%
7%
5%
Frying
fats
Universal
and confectionery fats
Universal
margarines²
Cocoa butter
analogues
1.
Including sunflower oil fractions.
2.
Including those for puff pastry and special margarines.
Source: APK-Inform
‘21/‘22‘20/‘21‘19/‘20‘18/‘19‘17/‘18
5.7
5.8
6.3
7. 3
−7%
6.8
4.7
4.5
4.9
5.8
5.3
(−9%)
0.8
0.8
0.7
0.8
0.8
(−3%)
0.2
0.5
0.6
0.7
0.7
(+6%)
Sunflower oil Soybean oil
Others
Vegetable oil production in the 2020/2021 season fell by 7%, reaching 6.8 mn tonnes. Sunflower oil
was the core driver of the decline as its output dropped by 9% and stood at 5.3 mn tonnes due to a
lower sunflower harvest in 2020 (–13% from 2019 level). For 2021 calendar year, Russia produced 5.0
mn tonnes of sunflower oil, down 14% year-on-year. This downturn was partly contained by export
duties on sunflowers. With a 17% increase in the sunflower harvest in 2021, sunflower oil production in
the 2021/2022 season can yet rise to 5.9 mn tonnes (+10%).
Higher demand against stagnant household incomes in 2021 caused production of industrial fats in
Russia to rise by 6%, amounting to 1.3 mn tonnes. This growth mainly concerned universal fats (+8%,
or 28 ths tonnes), cocoa butter analogues (+31%, or 15 ths tonnes) and confectionery fats (+19%, or
12 ths tonnes). The output mix of the different categories of industrial fats is determined by strong
demand from the domestic confectionery and dairy industries and shows a slight year-to-year
variation.
62
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PRODUCTION
Source: Rusagro’s estimate based on the data from the Russian Federal Service
for State Statistics (Rosstat), Federal State Statistics Service, BusinesStat
CONSUMER PRODUCTS
↑2%
1.9
mn tonnes
PRODUCTION OF PACKAGED
VEGETABLE OIL IN RUSSIA IN 2021
‘17
–4%
‘18 ‘19
‘20 ‘21
0.2 0.2 0.2 0.2 0.2
‘17
+2%
‘18 ‘19
‘20 ‘21
0.8
0.9
0.8
0.9 0.9
‘17
+2%
‘18 ‘19
‘20 ‘21
1.8
1.9 1.9 1.9 1.9
PRODUCTION OF PACKAGED
VEGETABLE OIL IN RUSSIA
mn tonnes
PRODUCTION OF MAYONNAISE
AND MAYONNAISE-BASED SAUCES
IN RUSSIA
mn tonnes
PRODUCTION OF PACKAGED
MARGARINE AND SPREADS IN
RUSSIA
mn tonnes
Production of the main categories of consumer
oil products in Russia in 2021 remained at about
the same level as in the previous year. There
was a mild increase in the output of packaged
vegetable oil and mayonnaise (+2%) – up to 1.9
and 0.9 mn tonnes respectively (+35, and 16 ths
tonnes). Following an occasional upswing in
demand for these products due to quarantine
measures related to the COVID-19 pandemic,
production of packaged margarines and spreads
still decreased by 4% (down 8 ths tonnes) to
2019 levels (0.2 mn tonnes). The output of
cheese and cheese products in 2021 amounted
to 0.8 mn tonnes, + 4% (up 31 ths tonnes) year-
on-year, while output of butter dropped to 276
ths tonnes (–2%, or 6 ths tonnes).
↑2%
0.9
mn tonnes
PRODUCTION OF MAYONNAISE
AND MAYONNAISE-BASED
SAUCES IN 2021
↓4%
0.2
mn tonnes
PRODUCTION OF PACKAGED
MARGARINE AND SPREADS IN 2021
63
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Source: the All-Russian Union of Oils and Fats and Rusagro estimate
KEY
PLAYERS
CRUDE VEGETABLE OIL
The 2020/2021 season witnessed seven players,
jointly holding 57% of the total domestic
production of crude sunflower oil. With a 13%
share (+1.0 p.p. against the 2019/2020 season)
and crude sunflower oil output of 664 ths
tonnes in the 2020/2021 season, Rusagro
topped the major producer list, according to
the All-Russian Union of Oils and Fats and
Company's estimates. Estimates showed that
Yug Rusi (South of Russia) could account for
around 11.7% (+0.6 p.p.) of the total national
sunflower oil output and EFKO – for 8% (+1 p.p.).
No.
1
RUSAGRO'S PLACE AMONG RUSSIAN
SUNFLOWER OIL PRODUCERS
INTHE 2020/2021 SEASON
No.
1
43
Others
Major producers
of sunflower oil
in Russia in 2020/2021 season, %
13
Rusagro
8
EFKO
6
Sigma
6
Blago
6
Aston
6
NMZhK
12
Yug Rusi
1.
Data on the actual sunflower oil production by Rusagro, NMZhK, Blago – estimated by the All-Russian Union of Oils and Fats; data
onEFKO – estimated by the All-Russian Union of Oils and Fats plus the volumes of Elite Maslo (Elite Oil) and EFKO Taman branch esti-
mated by the Company; Yug Rusi – the Company’s estimate based on the proportional change to the vegetable oil production in Russia.
64
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INDUSTRIAL FATS
Source: All-Russian Union of Oils and Fats
and expert assessment based on the data
from the Federal Customs Service of Russia
MAJOR PLAYERS
IN THE INDUSTRIAL FATS MARKET
IN RUSSIA IN 2021
%
PACKAGED VEGETABLE OIL
Source: All-Russian Union of Oils and Fats,
expert assessment
1
MAJOR PRODUCERS
OF PACKAGED VEGETABLE OIL
IN RUSSIA IN 2021
%
KEY
PLAYERS
1.
Data on the actual sunflower oil production
by Rusagro, NMZhK, Blago – estimated by the
All-Russian Union of Oils and Fats; data on EFKO
– estimated by the All-Russian Union of Oils and
Fats plus the volumes of Elite Maslo (Elite Oil) and
EFKO Taman branch estimated by the Company;
Yug Rusi – the Company’s estimate based on the
proportional change to the vegetable oil produc-
tion in Russia.
48
22
11
5
14
EFKO
Others
NMZhK
Rusagro
Cargill
22
11
9
9
Yug Rusi
Others
EFKO
Rusagro
BUNGE
6
Blago
44
No.
2
RUSAGRO'S PLACE AMONG
PRODUCERS OF INDUSTRIAL FATS
IN RUSSIA IN 2021
No.
5
RUSAGROS’ PLACE AMONG
PRODUCERS OF PACKAGED
VEGETABLE OIL IN RUSSIA IN 2021
The Russian industrial fats market in 2021
featured three major players, with a combined
share of 81%. The market leader is EFKO – in
2021 the company claimed 48% (+0.9 p.p.) of
the domestic industrial fats market. Rusagro
secured its second place and a 22% share. Cargill
is traditionally in third place – its share rose up
by 1.5 p.p. and stood at 11%.
Five players account for more than half of
national packaged vegetable oil output
(56%). The largest of these is Yug Rusi. As this
company does not belong within the Russian Oil
and Fats Union, Rusagro expertly estimated its
production volumes at 420 ths tonnes, and its
share in Russian production at 22% (+0.3 p.p.).
With a share of 6% (–1.2 p.p.), Rusagro may go
after the fifth place in the ranking.
65
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CONSUMER MARGARINE
MAJOR CONSUMER MARGARINE
PRODUCERS IN RUSSIA IN 2021
%
MAYONNAISE
Source: All-Russian Union of Oils and Fats,
expert assessment
2
MAJOR MAYONNAISE PRODUCERS
IN RUSSIA IN 2021
%
KEY
PLAYERS
1.
Data on the actual volume of bottled oil produc-
tion by Rusagro, Blago, EFKO, BUNGE – estimat-
ed by the All-Russian Union of Oils and Fats; data
on Yug Rusi and other players – the Company's
estimate based on the data from the Federal
Customs Service of Russia and AC Nielsen.
2.
Data on the actual margarine production by
Rusagro, EFKO, NMZhK, Yanta – estimated by the
All-Russian Union of Oils and Fats; data on other
players – the Company's estimate based on the
data from the Federal Customs Service of Russia,
AC Nielsen and BusinesStat.
49
19
4
3
Rusagro
Others
Yanta
EFKO
25
NMZhK
18
16
15
12
Essen
Others
Nefis
9
NMZhK
Rusagro
EFKO
30
Source: All-Russian Union of Oils and Fats,
expert assessment
1
No.
1
RUSAGRO'S PLACE AMONG
CONSUMER MARGARINE
PRODUCERS IN RUSSIA IN 2021
No.
2
RUSAGRO'S PLACE AMONG
MAYONNAISE PRODUCERS
IN RUSSIA IN 2021
For many years Rusagro has been leading
the way in Russian market among consumer
margarine producers. Rusagro's share of this
product category in 2021 is estimated at 49%
(–3.5 p.p.). The second place with a share of 19%
(+1.5 p.p.) is occupied by NMZhK – its consumer
margarine output is estimated at 14 ths tonnes.
The top five producers account for 70% of
Russian mayonnaise output. In 2021, Essen
ranked first with a share of 18%. Rusagro was
again in the second place with a share of 16%.
66
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EXPORTS AND IMPORTS
CRUDE VEGETABLE OIL
Governmental restraints
On 1 September 2021, Russia introduced
a floating export duty on sunflower oil
exported outside the EEU and will have it
place until 31 August 2022. This duty is 70%
of the difference between the benchmark
price (USD 1,000/t) and the indicative price
(arithmetic average of monthly market
prices), minus the adjustment factor
(USD50/t). In 2021, the export duty on sun-
flower oil hardly weighed on export volumes,
but still it curtailed the influence of soaring
world prices on domestic prices.
CRUDE VEGETABLE
OIL EXPORTS
mn tonnes
‘16/‘17
–14%
‘17/‘18 ‘18/‘19
‘19/‘20 ‘20/‘21
1.6
1.8
2.1
3.3
2.7 (–19%)
0.5
0.6
0.6
0.6
0.6 (–12%)
0.2
0.3
0.6
0.7
0.8 (+13%)
Sunflower oil
Rape oil Soybean oil
2.8
3.3
4.7
4.0
2.4
STRUCTURE OF CRUDE SUNFLOWER
OIL EXPORTS BY DESTINATION
IN 2020/2021 SEASON
%
28 (+8 p. p.)
27
(+14 p. p.)
16
(–6 p. p.)
10
(–6 p. p.)
Turkey
Others
Egypt
5 (–2 p. p.)
India
Iran
China
14 (–7 p. p.)
↓19%
2.7
mn tonnes
EXPORTS OF CRUDE
SUNFLOWER OIL IN RUSSIA
IN 2020/2021 SEASON
Source: Federal State Statistics Service Source: APK-Inform
Driven by a recovering demand for palm oil from
the confectionery and dairy industries, imports
of crude vegetable oil in 2020/2021 rose to
1.4 mn tonnes (+4%). Imports of this product
jumped by 34% and reached 1.1 mn tonnes.
Indonesia remained the main importer of palm
oil in 2021, accounting for 97% of the total
import volume in the 2020/2021 season.
CRUDE VEGETABLE OIL IMPORTS
mn tonnes
‘16/’17
0.9
1.2
1.4 1.4
+4%
1.4
‘17/‘18 ‘18/‘19
‘19/‘20 ‘20/‘21
0.8
1.0
1.1
0.8
1.1 (+34%)
0.2
0.2
0.3
0.6
0.3 (+13%)
Palm oil
Others
Source: Federal State Statistics Service
Contracting domestic production of vegetable oil in the 2020/2021 season pushed exports down
by 14% season-on-season. This has to do with smaller amount of crude sunflower oil shipments,
which totalled 2.7 mn tonnes as of season-end (–19% from the season earlier). Export volumes are
anticipated to increase in the new season as there are projections of output growth in January–August
2022 on the back of a higher sunflower harvest in 2021.
Turkey, Iran, China and Egypt have been the main buyers of Russian crude sunflower oil for the past
few years. In the 2020/2021 season, Turkey and Iran accounted for 28% (+8 p.p.) and 27% (+14 p.p.) of
all Russian exports, respectively. As Turkey has zero duties on sunflower oil imports, supplies to this
country increased by 12%, totalling 757 ths tonnes. Sales to Iran amounted to 731 ths tonnes, posting
a noticeable increase (+61%) on the back of growing demand and a lower spread for sunflower oil
compared to soybean and palm oil.
67
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EXPORTS AND IMPORTS
INDUSTRIAL FATS
STRUCTURE OF INDUSTRIAL FATS
EXPORTS BY DESTINATIONS IN 2021
%
EXPORTS AND IMPORTS OF
INDUSTRIAL FATS IN RUSSIA
ths tonnes
54 (+32.8 p. p.)
10
(+0.4 p. p.)
9
(–1.4 p. p.)
6 (–0.1 p. p.)
Uzbekistan
Georgia
Others
Tajikistan
Mongolia
5 (–0.9 p. p.)
Ukraine
15 (–30.8 p. p.)
STRUCTURE OF INDUSTRIAL FATS
EXPORTS IN 2021
%
50
22
21
6
Milk fat substitutes
Frying fats
Cocoa butter
analogues
Universal
margarines,
margarines
for puff pastry
and special
margarines
Universal
and confectionery fats
2
Source: Federal Customs Service of Russia
Source: APK-Inform
‘21‘20‘19‘18‘17
57
68
73
95
127
142
156
174
134
114
+33%
–15%
Exports Imports
In 2021, Russia exported 127 ths tonnes of industrial fats, up 33% (up 32
ths tonnes) above the 2020 level. The upward trend was spurred by a 135%
increase in supplies of universal fats (up to 55 ths tonnes), which accounted
for 43% of the total export volume on the year-on-year basis. More than
half of Russia's supplies of industrial fats (54%) were sold to Uzbekistan (69
ths tonnes).
Imports of industrial fats were trending down for the second year in a row
(–23% in 2020 and –15% in 2021) and amounted to 114 ths tonnes in 2021,
including 53 ths tonnes (–10%) of universal fats and 45 ths tonnes (–18%) of
cocoa butter analogues. Over half (66%) of the volumes were received from
Indonesia (44 ths tonnes, –14%) and Malaysia (33 ths tonnes, –20%).
↑33%
127
ths tonnes
EXPORT OF INDUSTRIAL FATS
FROM RUSSIA IN 2021
50
OF INDUSTRIAL FATS
EXPORTS IN 2021 IS
COVERED BY UNIVERSAL
ANDCONFECTIONERY FATS
54
OF INDUSTRIAL FATS WAS
EXPORTED TO UZBEKISTAN
IN 2021
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EXPORTS AND IMPORTS
CONSUMER OIL AND FATS PRODUCTS
STRUCTURE OF EXPORTS
OFCONSUMER OIL AND FATS
PRODUCTS BY DESTINATIONS IN 2021
%
25 (+0.7 p. p.) 15
(+1.8 p. p.)
12
(+2.9 p. p.)
7
(+0.8 p. p.)
Uzbekistan
Others
Kazakhstan
Tajikistan
Georgia
6
(+0.2 p. p.)
Belarus
35 (–6.4 p. p.)
RUSAGRO’S EXPORTS OF CONSUMER
OIL AND FATS PRODUCTS
ths tonnes
IMPORTS OF CONSUMER OIL
AND FATS PRODUCTS
ths tonnes
‘17
625
610
709
838
–25%
625
‘18 ‘19
‘20 ‘21
475
456
536
656
446
(–32%)
77
80
89
91
94
(+3%)
74
74
85
92
85
(–7%)
Packaged
vegetable oil
Margarine
and spreads
Mayonnaise and
mayonnaise-based
sauces
Source: Federal Customs Service of Russia, Eurasian Economic
Community Customs Union, BusinessStat
↓32%
446
ths tonnes
EXPORTS OF BOTTLED OIL
FROM RUSSIA IN 2021
Uzbekistan had traditionally been the world's
largest importer of major categories of Russian
consumer oil and fats products, being the main
buyer of packaged vegetable oil. 2021 exports
to this country amounted to 134 ths tonnes
(–27%), or 30% of Russia's total exports of the
said products. Kazakhstan is the second largest
buyer of consumer oil and fat products, being
the largest importer of Russian mayonnaise and
mayonnaise-based sauces (30% of exports in
this category) and margarines and spreads (26%
of exports in this category).
Packaged
vegetable oil
Margarine
and
spreads
Mayonnaise and
mayonnaise-based
sauces
‘17
33
37
38
36
–5%
36
‘18 ‘19
‘20 ‘21
19
22 22
24
25
(+1%)
4
5
9
7
6
(–3%)
10
9
7
5
3
(–37%)
Russia imports a small amount of consumer oil
products – mainly olive oil from Spain and Italy.
Vegetable oil imports in 2021 were 25 ths tonnes
(+1%), including 10 ths tonnes from each of
these two countries. Imports of mayonnaise and
mayonnaise-based sauces continued to decline
(–37%, or 2 ths tonnes year-on-year), influenced
by stagnating imports of popular in Russia
Korean sauces and lower imports in the Far East.
In 2021, Russia cut down exports of the major
categories of consumer oil products by 25%
(down 213 ths tonnes year-on-year). Due to
more favourable conditions for exporting oil in
bulk, bottled vegetable oil shipments recorded
the most significant drop, by 32%, or 210 ths
tonnes, and footed up 446 ths tonnes. Exports
of consumer margarine and spreads fell by 7%
(down 7 ths tonnes) and stood at 85 ths tonnes.
Supplies of mayonnaises and mayonnaise-
based sauces showed a 3% increase and
amounted to 94 ths tonnes.
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PRICES
CRUDE SUNFLOWER OIL CONSUMER OIL AND FATS PRODUCTS
AVERAGE MARKET PRICES
FOR CRUDE SUNFLOWER OIL
IN RUSSIA
ths RUB/t excl. VAT
AVERAGE GLOBAL CRUDE PALM OIL
MARKET PRICES
USD/t
AVERAGE PRICES FOR CONSUMER
FAT AND OIL PRODUCTS IN RUSSIA
RUB/kg excl. VAT
+60%
‘17 ‘18 ‘19
‘20 ‘21
39.1
40.6
39.6
55.6
89.1
+31%
‘17 ‘18 ‘19
‘20 ‘21
688
587
550
701
1,140
110
115
122
130
144
(+11%)
73
72
73
75
97
(+29%)
‘17 ‘18 ‘19
‘20 ‘21
Spreads
Packaged
margarine
Packaged
vegetable oil
Mayonnaise and
mayonnaise-based
sauces
50
53
52
57
88
(+54%)
52
50
51
51
66
(+23%)
Governmental restraints
A price cap on retail bottled sunflower
oil was in effect from 20 December 2020
through to 1 October 2021 to protect
Russian consumers. Thus, producers agreed
to keep an ex-works price for this product
not higher than 95 RUB/l incl. VAT and
retailers – to keep retail pricenot higher
than110RUB/l incl. VAT.
Source: APK-Inform Source: APK-Inform
Source: BusinesStat
The average annual price for sunflower oil in Russia rose by 60% in 2021 compared to the 2020
average, reaching 89.1 ths RUB/t, excl. VAT. The escalation of market prices during the year was
driven by strong global demand for vegetable oils on the back of declining final carry-overs and
lower oil production in Russia for the 2020/2021 season. Most of the growth was recorded between
January and May, while starting from June prices began the adjustment trend inspired by the
expectations of high sunflower production in the 2021/2022 season, both in Russia and in other
counties across the world. Domestic prices were also constrained by current export duties on
sunflower and sunflower crude oil.
Higher inflation and vegetable oil prices in 2021 fuelled up the producer prices for the major categories
of consumer oil and fats products. Thus, the market prices for packaged sunflower oil rose by 54% – to
88.2 RUB/kg excl. VAT, and for mayonnaise and margarine – by 29 and 23% (to 97.0 and 66.3 RUB/kg
excl. VAT), respectively. The price of spreads went up by 11% and came out at 144.1 RUB/kg, excl. VAT.
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9.4
'20
3.4
'19
2.9
'18
0.7
'17
ADJUSTED EBITDA
RUB bn
12.8
'21
Oil and Fats Business revenues grew by 57% (up RUB 45.5 bn) in 2021 and reached
RUB125.2bn, driven by favourable global pricing environment. However, rising vegetable oil
prices increased the cost of production and thus pushed down the profit margin from 12%
to10%. As a result, the Company managed to increase adjusted earnings before interest, tax
and depreciation (EBITDA) by 36% (up RUB 3.4 bn) to record RUB 12.8 bn.
Results
↓3%
649
ths tonnes
RUSAGRO’S CRUDE SUNFLOWER
OIL PRODUCTION
↑2%
391
ths tonnes
RUSAGRO’S SALES OF CRUDE
VEGETABLE OIL
↑8%
335
ths tonnes
RUSAGRO’S SALES
OF INDUSTRIAL FATS
↓5%
325
ths tonnes
RUSAGRO’S SALES
OF CONSUMER OIL AND FATS
PRODUCTS
↑57%
125.2
RUB bn
RUSAGRO’S OIL AND FATS
BUSINESS REVENUES IN 2021
↓2p.p.
10
ADJUSTED EBITDA MARGIN
↑36%
12.8
RUB bn
ADJUSTED EBITDA
OF RUSAGRO’S OIL AND FATS
BUSINESS
Operating results
Financial results
of Rusagro’s Oil and Fats Business
in 2021
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OIL
EXTRACTION
MARKETING
AND SALES
OIL EXTRACTION
STORAGE AND CONDITIONING
Rusagro’s Oil and Fats Business owns five elevators with a storage capacity
of 183 ths tonnes of sunflower seeds. Besides, the Company utilises the
capacities of ten third-party elevators with a storage capacity of 260
ths tonnes of sunflower on a leasehold basis. The elevators can also
accommodate grain crops.
PRODUCTION OF OIL
AND FATS PRODUCTS
In 2021, Rusagro's total annual production capacity for industrial fats
approximated 400 ths tonnes, and for consumer products – 700 ths tonne
(+5% against 2020 capacity), including around 320 ths tonnes of bottled oil
(+5%), 300 ths tonnes of mayonnaise and mayonnaise-based sauces (+8%)
and 80 ths tonnes of consumer margarine and spreads. The maximum
possible output of finished products was slightly increased due to changes
in the mix of production formats, the addition of new packaging lines or
improved capacity of existing lines.
DAIRY PRODUCTS
PRODUCTION
Rusagro's designed milk processing capacity at the
butter and cheese plant is 270 tonnes of milk per
day. The total production capacity of dry industrial
mixes is 17 ths tonnes. Milk is purchased from private
farms in the Ulyanovsk and Samara Regions and
in Tatarstan. The product line includes cheese and
cheese products, butter and spreads, cream and
dry mixes. The plant specialises in the production of
cheese and cheese products of the rennet type; by-
products of this process include butter and cream, as
well as cheese whey-based dry mixes.
OVERVIEW OF ASSETS
RUSAGRO'S SUNFLOWER SEED
EXTRACTION CAPACITY
tonnes per day
‘17
1,244
1,225
4,610
4,610
4,610
‘18 ‘19 ‘20 ‘21
PRODUCTION
OF CONSUMER
OIL&FATS AND DAIRY
PRODUCTS
PRODUCTION
OFINDUSTRIAL
FATS AND WHEY
POWDER
For more details on the environmental impact of the
Business and relevant mitigation measures, see the
ESG Report section
Rusagro's total sunflower processing capacity in 2021 did not change, being
4.6 ths tonnes of sunflower seeds per day or about 1.6 mn tonnes per year.
Given the level of oil content of raw materials and the capacity of the plant,
this allows for the production of around 660 ths tonnes of crude oil and
600 ths tonnes of meal. In addition, Rusagro owns a soybean processing
plant in the Far East with a maximum annual capacity of around16 ths
tonnes of soybean oil and 74 ths tonnes of soybean meal.
72
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OVERVIEW
OF ASSETS
4
plants for processing
oil crops into oil
andmeal
2
plants for theproduction
ofindustrial fats
andconsumer oil
andfats products
2
dairy plants
SAMARA
REGION
SARATOV
REGION
ULYANOVSK
REGION
BEZENCHUK
OIL EXTRACTION PLANT
ZAVOLZHSKY DAIRY PLANT
ATKARSKY
OIL EXTRACTION PLANT
BALAKOVSKY
OIL EXTRACTION PLANT
In 2021, the Atkarsky
Oil Extraction Plant
implemented a project
to reduce by 37% the
time required to change
over from the production
of traditional refined
deodorised winterized oil to
high-oleic oil.
In 2021, the Saratovsky Fat and Oils Plant
started producing and shipping products
with European quality standards – low
3-MCPD (3-monochloropropan-diol) and
GE (glycidol esters).
In 2021, the Bezenchuk Oil
Extraction Plant mastered the
commercial production of blended
sunflower and rapeseed oil and
applied it for all packaging lines.
SARATOVSKY
FAT AND OILS PLANT
KOSHKINSKY BUTTER
AND CHEESE PLANT
SVERDLOVSK
REGION
YEKATERINBURGSKY
OIL AND FATS PLANT
In 2021, the Yekaterinburgsky Oil
and Fats Plant produced a blended
oil under the Bonissimo brand
specially for China and products
with additional bottle labels.
PRIMORYE
TERRITORY
PRIMORSKAYA SOYA
In 2021, Rusagro acquired a 25%
stake in Primorskaya Soya LLC,
consolidating 100% of the company
shares in its ownership.
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BRANDS
OVERVIEW OF ASSETS
Rusagro's Oil and Fats Business has a product
portfolio in four segments: sauces, liquid oils,
solid fats and soaps, and dairy products. The
key brands of sauces are Ya lublu gotovit,
Mechta Khozyaiki (Dream of the Housewife),
Provansal EZhK and the brands of margarine
– Schedroe Leto (Generous Summer) and
Chudesnitsa (Mischievous Lady). Yet, Ya lublu
gotovit (I love cooking) is an umbrella brand
that unites three local brands of mayonnaise
(Moscovsky Provansal, Saratovsky Provansal
and Novosibirsky Provansal).
Other brands include Rossiyanka, BENEFITTO,
Maslava and Leto Krasno (butter), Saratovsky
(margarine), Zhar Pechka and Buterbrodnoye
Leto (Sandwich Morning) (spreads), Oliviez
(mayonnaise), Melie and Syrnaya Kultura
(Cheese Culture) Cheese Culture (cheeses).
According to AC Nielsen research, the
Company's margarine brands captured
34% of the consumer margarine market and
mayonnaise brands – 13% of the mayonnaise
market in Russia in 2021. In the Central Russia,
the most recognizable brand is Moscovsky
Provansal, in the Urals – Provansal EZhK and
Schedroe Leto. The latter is also the number one
brand in exports from the Russian Federation
and dominates the markets of Uzbekistan,
Tajikistan, and Turkmenistan. Mechta Khozyaiki
is the market leader in Moldova and Azerbaijan,
Oliviez – in Uzbekistan. To the Chinese market
the products are supplied under the Leto Krasno
brand.
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INVESTMENTS
RUSAGRO'S INVESTMENT
IN THE OIL AND FATS BUSINESS
RUB bn
‘17
1.6
1.2
0.5
1.8
+15%
2.1
‘18 ‘19 ‘20 ‘21
Project
RELOCATING
THEPRODUCTION
CAPACITIES TO THE
ATKARSKY OIL EXTRACTION
PLANT
Project
IMPROVING THE EFFICIENCY
OF THE BALAKOVSKY OIL
EXTRACTION PLANT
Project
IMPROVING THE EFFICIENCY
OF THE ATKARSKY OIL
EXTRACTION PLANT
Project
ACQUIRING A MARGARINE
PRODUCTION LINE FOR PUFF
PASTRY
Major investment projects of the Oil and Fats Business
OVERVIEW OF ASSETS
Investment volume
in2021:
0.7 RUB bn, excl. VAT
Investment volume
in2021:
0.3 RUB bn, excl. VAT
Investment volume
in2021:
0.02 RUB bn, excl. VAT
Investment volume
in2021:
0.1 RUB bn, excl. VAT
Project cost:
1.9 RUB bn,
excl. VAT
Project cost:
1.2 RUB bn,
excl. VAT
Project cost:
0.8 RUB bn,
excl. VAT
Project cost:
0.6 RUB bn,
excl. VAT
Goal:
relocation of mayonnaise
production line from
Moscow Oil and Fat Plant
due to expiry of lease and
abandonment of the site
Goal:
increase in sunflower
processing capacity from
1.5 ths to 1.8 ths tonnes
per day
Goal:
increase in sunflower
processing capacity from
1.5 ths to 1.8 ths tonnes
per day
Goal:
doubling the production
capacity of puff pastry
margarine
Location:
Saratov
Region
Location:
Saratov
Region
Location:
Saratov
Region
Location:
Saratov
Region
Implementation
period:
2020–2022
Implementation
period:
2020–2022
Implementation
period:
2021–2023
Implementation
period:
2021–2022
In 2021, Rusagro invested RUB 2.1 bn into
development and maintenance of the Oil and
Fats Business, The 15% year-on-year increase
in investments was attributable to the costs
of a project to relocate oil and fats production
capacities between sites and to increase the
capacities of the Balakovsky Oil Extraction
Plant.
Note: Data for 2020 include investments
inthe "Dairy Products" Business
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IT AND INNOVATIONS
In 2020, Rusagro's Oil and Fats
Business approved a 2021–2026
digital transformation strategy aimed
at optimising costs and improving
productivity through advanced
automation systems. The greatest
focus in 2021 was on automation
ofsunflower procurement
management, output and storage of
finished oil andfats products.
OIL EXTRACTION
Digital twins of oil extraction plants
and raw material management models
based on theDigital Farmer platform
andtransportation management systems
(TMS) and yard management systems (YMS)
Optimisation of the sunflower transportation cost
andtiming, and its storage and processing locations
20222021
Digital Farmer – transfer to a digital interface for
interaction with suppliers
In 2021, Rusagro successfully launched a desktop and mobile
application, Digital Farmer, to automate work with raw material
suppliers. More than 1,500 agricultural producers in the three
regions where the Oil and Fats Business operates were already
using the app as at the end of the year. In good time, we expect to
roll out the app to other Rusagro regions as well. The Company
also expressed a willingness to provide access to the app to non-
competitors of Rusagro.
In users' opinion, this additional method of interaction saves time
and simplifies the agricultural produce selling procedure. With
the digital service on offer, suppliers have the opportunity to use
transport ordering, digitally signed purchase and sale options,
exchange information on deliveries and professional advices, and
receive up-to-date analytics..
PRODUCTION OF OIL
AND FATS PRODUCTS
System for optimised planning of oil
and fats products with the creation
of a digital twin
Increased quantity of output and lower production costs
20222020
PRODUCT STORAGE
AND LOGISTICS
Enterprise Warehouse Management System
(WMS) and Yard Management System (YMS)
Faster and more accurate warehouse operations
20232020
Product innovations
In addition to technology-related projects, Rusagro's Oil and Fats
Business is interested in using advanced technologies to create
innovative products with improved consumer properties. For
example, since 2021 the Company has been involved in a project to
produce compound fats from micro-organisms for use in various
sectors of the food industry. Also, the Company is looking into
unique alternatives to existing cocoa butter substitutes on the
market.
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OPERATING RESULTS
PRODUCTION
RUSAGRO’S PRODUCTION OF
INDUSTRIAL OIL AND FATS
PRODUCTS
ths tonnes
‘17
+1%
‘18 ‘19 ‘20 ‘21
Meal Crude oil Industrial fats
243
234
634
592
594
(0%)
192
279
624
672 649
(–3%)
3
10
283
328 364
(+11%)
438
524
1,541
1,592
1,607
–12%
20
88
143
150
120
(–20%)
56
48
146
144
139
(–4%)
36
29
42
45
39
(–13%)
112
163
331
338
297
‘17 ‘18 ‘19 ‘20 ‘21
Bottled
oil
Mayonnaise and
mayonnaise-based
sauces
Consumer
margarine and
spreads
↓3%
649
ths tonnes
RUSAGRO’S CRUDE
SUNFLOWER OIL
PRODUCTION IN 2021
↓12%
297
ths tonnes
RUSAGRO’S PRODUCTION
OF CONSUMER OIL
AND FATS PRODUCTS IN 2021
↑11%
364
ths tonnes
RUSAGRO’S PRODUCTION
OF INDUSTRIAL FATS IN 2021
Following a turndown in demand for finished
products on domestic and global markets and
a simultaneous increase in demand for crude
oil, Rusagro's output of consumer oil products
in 2021 declined by 12% and stood at 297 ths
tonnes (down 41 ths tonnes). The production of
bottled oil fell by 20% (down 30 ths tons) and
amounted to 120 ths tonnes, mayonnaise and
mayonnaise-based sauces – by 4% (down 5
ths tonnes) to 139 ths tonnes, margarines and
spreads – by 13% (down 6 ths tonnes).
Rusagro's crude vegetable oil production in 2021 decreased by 3% (down 23 ths tonnes) and amounted
to 649 ths tonnes. Due to weakening crop, the Company processed 1.4 mn tonnes of sunflowers, 6%
less than a year earlier. This led to a 5% drop (down 33 ths tonnes) in oil output, standing at 639 ths
tonnes. In addition to sunflower oil, 58 ths tonnes of soybean oil were processed and 10 ths tonnes of
soybean oil were produced (there was no soybean oil production in 2020). The production of meal was
maintained at last year's level due to the processing of soybeans, which have a higher meal yield than
sunflowers. Production volume was 594 ths tonnes.
Rusagro produces all the main types of industrial fats, except cocoa butter analogues. The bulk of
the products mix is represented by universal margarines and fats that are the most in-demand at the
domestic market. In 2021, the Company stepped up its production of industrial fats by 11%, totalling
364 ths tonnes, through the launch of an additional line in July 2020 for filling industrial fats into tank
trucks and the increase in productivity of the puff pastry margarine production line.
RUSAGRO’S PRODUCTION
OF CONSUMER OIL AND FATS
PRODUCTS
ths tonnes
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SALES
OPERATING RESULTS
RUSAGRO’S SALES OF INDUSTRIAL
OIL AND FATS PRODUCTS
ths tonnes
RUSAGRO’S SALES OF CONSUMER
OIL AND FATS PRODUCTS
ths tonnes
RUSAGRO’S DAIRY
PRODUCTS SALES
ths tonnes
↓5%
325
ths tonnes
RUSAGRO’S SALES OF
CONSUMER OIL AND FATS
PRODUCTS IN 2021
↑8%
340
ths tonnes
RUSAGRO’S SALES OF
INDUSTRIAL FATS IN 2021
↑2%
391
ths tonnes
RUSAGRO’S SALES OF CRUDE
VEGETABLE OIL IN 2021
+2%
Meal Crude oil Industrial fats
253
302
647
589
582 (–1%)
150
168
516
384
391 (+2%)
3
10
258
310
335 (+8%)
406
481
1,296
1,284
1,308
‘17 ‘18 ‘19 ‘20 ‘21
–5%
Bottled
oil
Mayonnaise and
mayonnaise-based
sauces
Consumer
margarine and
spreads
20
97
147
160
157
(–2%)
59
48
136
138
133
(–4%)
36
29
45
43
35
(–18%)
115
175
328
341
325
‘17 ‘18 ‘19 ‘20 ‘21
+7%
‘19
’20
‘21
Industrial
dry mixes
Consumer
products
15 15 15 (+6%)
12
13
14
(+9%)
27
28
30
Sales of dairy products amounted to 30 ths
tonnes – 7% higher than in 2020 (up 2 ths
tonnes). Sales of whey powder mixes used
as ingredients for instant products, as cream
powder for instant coffee and as additives for
meat and confectionery products rose by 6%
and totalled 15 ths tonnes. Sales volume of
consumer dairy products grew by 9% as sales of
cheese and butter increased.
Sales of consumer oil products fell by 5%
(down 17 ths tonnes) to 325 ths tonnes. All
categories posted negative growth during
the reporting period. Margarines and spreads
(–18%, or down 8 ths tonnes) saw the biggest
drop, mainly due to high product stocks in key
export countries. Bottled oil and mayonnaise
and mayonnaise-based sauces (48% and
41% of total sales of consumer oil and fats
products) decreased by 2% and 4%, to 157 ths
and 133 ths tonnes, respectively.
In 2021, Rusagro's industrial oil and fats sales
volume increased by 2% (up 25 ths tonnes) and
totalled 1,308 ths tonnes. The upward trend was
contributed to by higher sales of industrial fats,
which rose by 8% (up 25 ths tonnes to 335 ths
tonnes) compared to 2020, when quarantine
measures dampered demand for this type of
products. Sales grew to 391 ths tonnes (+2%,
or up 6 ths tonnes) on the back of an attractive
crude oil price environment.
In 2021, Rusagro won ten-
ders to supply liquid frying
fats to several leading inter-
national companies in the
HoReCa segment in 2022.
As a result, the Company
became Russia's largest
supplier of deep frying oils in
this segment.
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OPERATING RESULTS
Exports
In the reporting period, 41% of all oil and fats
products sold by the Rusagro were destined
for export, its total volume amounting to 882
ths tonnes – down 4% year-on-year. Industrial
exports remained more or less consistent with
the previous year (575 ths tonnes): exports of
meal decreased (–17%, or 33 ths tonnes), but
supplies of crude oil (+7%, or 23 ths tonnes) and
industrial fats (+32%, or 12 ths tonnes) increased.
More than half (51%, or 185 ths tonnes) of the
crude oil was sold to Turkey.
RUSAGRO’S EXPORTS
OF INDUSTRIAL OIL
AND FATS PRODUCTS
ths tonnes
‘17
‘18
‘19
‘20 ‘21
Meal Crude oil Industrial fats
43
95
227
197
164
(–17%)
100
61
296
339
361
(+7%)
23
37
49
(+32%)
143
156
546
573
574
0%
↑7%
361
ths tonnes
RUSAGRO’S EXPORTS
OF CRUDE VEGETABLE OIL
IN 2021
↓23%
107
ths tonnes
RUSAGRO’S EXPORTS
OF CONSUMER OIL AND FATS
PRODUCTS IN 2021
RUSAGRO’S EXPORTS
OF CONSUMER OIL
AND FATS PRODUCTS
ths tonnes
‘17
–23%
‘18 ‘19
‘20 ‘21
11
34
72
85
54
(–37%)
29
24
29
32
29
(–7%)
9
11
21
49
69
122
140
107
22
24
(+6%)
Bottled oil
Mayonnaise
and sauces
Consumer margarine
and spreads
Export volumes of consumer oil and fats
products shrank by 23% (down 32 ths tonnes
– to 107 ths tonnes) as a result of a 37% (down
31 ths tonnes) drop in bottled oil shipments,
reaching 54 ths tonnes, which was due to more
beneficial conditions for exporting oil in bulk.
Uzbekistan is the largest buyer of bottled oil
and margarines from Rusagro; totalling 29 ths
tonnes of bottled oil (54% of exports) and 10 ths
tonnes of consumer margarines (41% of exports)
in 2021. Mayonnaise sales outside Russia rose
by 6% and amounted to 24 ths tonnes, 25% of
which was sold to Kazakhstan and Azerbaijan.
JSC Zhirovoy Kombinat (Fats Plant), part of the
Rusagro Oil and Fats Business, won first place in the
"Agribusiness Exporter of the Year" nomination in
the "Large Business" category of the "Exporter of the
2021 Year" federal competition hosted by the Russian
Export Center. The awards ceremony was held on 10
December in Moscow at the Made in Russia forum.
The ceremony was attended by Vladimir Aleksandrov,
General Director of Rusagro's Oil and Fats Business.
Rusagro was pressing forward the sales of consumer
oil and fats products in China in 2021. For example, the
Company supplied sunflower oil under the Leto Krasno
brand to the Hema network (Alibaba Group Holding
Limited) for the first time in August. With a view to
develop online sales, a speciality store of oil and fats
products called Hangzhou Rusagro was opened on the
JD.com marketplace, featuring both bottled oil under
Leto Krasno brand and mayonnaise under the Ya lublu
gotovit brand – Moscovsky Provansal. In November,
the Company successfully sent to China a whole train
of bottled sunflower oil of the Schedroe Leto, Ya lublu
gotovit, BONISSIMO, and Leto Krasno brands.
SALES OF CONSUMER OIL AND FATS
PRODUCTS IN CHINA
2021 BEST EXPORTER
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OPERATING
RESULTS
Brands
In 2021, 42% (+2 p.p.) of oil and fats products
sales and 60% (–3 p.p.) of Rusagro's Oil and
Fats Business revenue came from the consumer
segment. Rusagro’s oil and fat products
traditionally occupy leading positions in the
home regions. Thus, according to AC Nielsen
data for 2021, Provansal EZhK mayonnaise
ranked first in the Urals with a 42% share, while
Moskovsky Provansal was number two in the
Central Russian with a 22% market share. As
of the year-end, the Schedroe Leto consumer
margarine brand is the number one on the Urals
market with a share of 59%, and the Saratovsky
Provansal brand is in second place on the Volga
Region market with a share of 28%. These two
brands also hold prominent positions in the
Russian market – they are in third and second
place respectively (each with 12% share).
FINANCIAL RESULTS
In 2021, Rusagro's Oil and Fats Business
generated RUB 125.2 bn in revenue, which grew
by 57% (+ RUB 45.5 bn) due to higher market
prices for industrial and consumer oil and fats
products on the back of strong global demand
for vegetable oils. The production cost of sell
goods climbed up more slowly than selling
prices, however driving the profit margin down
from 12% to 10%. As a result, adjusted earnings
before interest, tax and depreciation (EBITDA)
posted less growth than revenues (+36%) and
stood at RUB 12.8 bn.
↑57%
125.2
RUB bn
REVENUES OF RUSAGRO’S OIL
AND FATS BUSINESS IN 2021
↑36%
12.8
RUB bn
ADJUSTED EBITDA
OF RUSAGRO’S OIL
AND FATS BUSINESS IN 2021
REVENUES OF RUSAGRO’S
OIL AND FATS BUSINESS
RUB bn
ADJUSTED EBITDA OF RUSAGRO’S
OIL AND FATS BUSINESS
RUB bn
‘17
+57%
‘18 ‘19
‘20 ‘21
19.4
26.3
62.4
79.7
125.2
4
11
5
12
‘17
0.7
2.9
3.7
9.4
+36%
12.8
‘18 ‘19
‘20 ‘21
Adjusted EBITDA margin, %
10
(–2 p. p.)
↓2p.p.
10
ADJUSTED EBITDA MARGIN OF
RUSAGRO’S OIL
AND FATS BUSINESS
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Meat
Rusagro's Meat Business
purchased 660 ths tonnes of
grain for feeding pigs in 2021,
including 190 ths tonnes from
the Company's Agriculture
Business.
BUSINESS

The unfavourable epizootic situation in 2021 dampened the growth
of pork production in Russia – it remained almost level with
theprevious year. Average market prices for livestock went up
by 26% year-on-year, spurred by rising poultry prices and higher
pig growing costs. Meanwhile, Russian producers achieved a 34%
increase in exports to Vietnam, partially offsetting lower demand
from Hong Kong.
Interactive
version
0%
4.3
mn tonnes
PORK PRODUCTION
IN RUSSIA
0 p.p.
5.6
RUSAGRO'S SHARE IN PORK
PRODUCTION IN RUSSIA
↓7%
203
ths tonnes
PORK EXPORTS
FROM RUSSIA
↑7%
15
ths tonnes
IMPORTS OF PORK
PRODUCTS INTO RUSSIA
Overview
of the Russian pork market
in 2021
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KEY
PLAYERS
No.
4
5.6
Velikoluksky
pig-breeding
complex
6.7
Sibagro
10.1
Miratorg
The largest
pork producers
in Russia in 2021, %
4.5
AgroPromkomplektatsiya
4.6
Agro-Belogorie
4.4
Cherkizovo
5.6
Rusagro
58.5
Others
In 2021, six largest pork producers accounted
for 41% of total production in Russia.
Themarket leader is Miratorg Agribusiness
Holding with a share of 10.1% (+0.6 p.p.).
As a result of mergers and acquisitions,
JCS Sibagro took second place – its
share rose from 4.3% to 6.7%, relegating
LLCVelikoluksky Pig-Breeding Complex
to third place with a share of 5.6% (0 p.p.).
Rusagro came in fourth with a share of 5.6%
and adifference of 0.6 ths tonnes.
0 p. p.
5.6
RUSAGRO’S SHARE IN PORK
PRODUCTION IN RUSSIA IN 2021
Source: Rusagro's calculations
based on data from
theNational Union of Swine
Breeders and Cherkizovo
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In 2021, pork production stayed at more or less
the same level, amounting to 4.3 mn tonnes
of pork in slaughter weight (–21 ths tonnes)
1
.
Agricultural organisations recorded a slight
increase in their production volumes (up 10 ths
tonnes), while production of farm enterprises
and private farm households sank by 6%
down 30 ths tonnes). The key drivers of this
situation were outbreaks of African swine fever
(ASF), which also affected large enterprises,
such as Miratorg Agribusiness Holding,
LLCKorall, LLCAgropromkomplektatsiya and
GCCherkizovo. The year-end results showed
that the volume of output was sufficient to
cover the domestic demand for pork.
PRODUCTION
PORK PRODUCTION IN RUSSIA
IN SLAUGHTER WEIGHT
2
mn tonnes
‘17
0%
Agricultural
enterprises
‘18 ‘19
‘20 ‘21
2.9
3.2
3.4
3.8 3.8 (+0%)
0.6
0.6
0.5
0.5 0.5 (–6%)
3.5
3.7
3.9
4.3 4.3
Farm enterprises
and private farm households
1.
Equivalent to about 5.5
mn tonnes of pork in live
weight.
2.
Excluding the pork
produced in the Republic
of Crimea.
Source: Federal State Statistics Service
EXPORTS AND IMPORTS
In 2021, exports of pork (half-carcasses, large
cuts, industrial cuts and semi-finished products)
and pork offal from Russia showed a 7% year-
on-year decrease and amounted to 203 ths
tonnes (down 14 ths tonnes). This mainly covered
the reduced offal deliveries (–24%, or –20 ths
tonnes), which was partially compensated for by
a 4% increase in pork exports (up 5 ths tonnes).
The negative growth in pork offal deliveries was
mainly caused by lower deliveries to Hong Kong
(–59%, or –23 ths tonnes). Due to high demand
on the domestic market, the pork exports
experienced just a light decline.
‘17
–7%
Pork
‘18 ‘19
‘20 ‘21
25
31
49
134 140
43
61
58
83
63
68
91
106
217
203
Pig offal
EXPORTS OF POR AND PIG OFFAL
ths tonnes
Sources: Federal Customs Service of Russia,
Customs Union data
44
(1 p. p.) 21
(4 p. p.)
17
(5 p. p.)
8
(– 10 p. p.)
10
(1 p. p.)
Vietnam
Ukraine
Hong Kong
Belarus
Others
PATTERN OF PORK AND PORK
OFFAL EXPORTS IN 2021
BYDESTINATIONS
%
Comment: Pork
includes carcass,
large cut, bulk
products and
ready-to-cook
foods.
The main export destinations for Russian pork products are Vietnam,
Ukraine, Belarus, and Hong Kong, accounting for 90% of the 2021 total.
Vietnam was the biggest buyer of Russian pork and pork offal, accounting
for 44% of Russian exports (+1 p.p.). In 2021, Russia supplied 89 ths tonnes
of pork products thereto, down 5% (down 5 ths tonnes) below the previous
year level. Vietnam remains a key export destination for fat cuts from
Russia, and Russia is still Vietnam's largest supplier of pork and second
largest supplier of pork offal. In contrast, the share of products sold to
Hong Kong fell from 18% to 8%, resulting from the lower buying interest in
China on the back of a gradual recovery of domestic production and tighter
controls on imports from Hong Kong.
Source: Federal State Statistics Service
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PRICES
In 2021, the average market price for live pigs
went up by 26% and reached 110.8 RUB/kg, excl.
VAT. The year-on-year increase was due to the
epizootic situation in the pork market and a rise
in poultry prices on the back of avian influenza,
a shortage of hatchery eggs resulting from the
reduced supplies from Europe and growth in
exports (+11% year-on-year). The price escalation
was also influenced by the appreciation of
production facilities and fodder resources as
a result of the rising cost of cereals and meal.
In addition to the above, traditional seasonal
factors had a bearing on prices during the year.
‘17
93.6
97. 5
90.3
87.9
+26%
110.8
‘18 ‘19
‘20 ‘21
AVERAGE MARKET PRICES
FOR PORK IN LIVE WEIGHT
IN RUSSIA IN THE CENTRAL
FEDERAL DISTRICT
RUB/kg, excl. VAT
EXPORTS AND IMPORTS
↑7%
15
ths tonnes
IMPORTS OF PORK AND PORK OFFAL TO
RUSSIA IN 2021
Pork imports to Russia in 2021 increased by 7%
year-on-year and reached 15 ths tonnes (+7%, or
up 1 ths tonnes). This situation was attributable
to the replacement of the pork tariff quota with
a flat scale of 25% in 2020. The main suppliers
of pork to Russia are Chile, Brazil, Belarus, and
Argentina.
‘17
292
86
83
14
+7%
15
‘18 ‘19
‘20 ‘21
IMPORTS OF PORK AND PIG OFFAL,
THS TONNES
ths tonnes
Comment: Pork includes carcass, large cut,
bulk products and ready-to-cook foods.
Source: Federal Customs Service of Russia Source: Globa lMonitoring
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Results
Operating results
Financial results
In 2021, the Meat Business reported a 22% (up RUB 7.2 bn) increase in revenues as aresult
of higher market prices for meat products and increased sales volumes (+2%) – despite
the difficult epizootic situation in the country, the Company managed to avoid adecline
inlivestock output. Forced down by higher production costs and expenses for the new pork
cluster in the Primorye Territory, the Business profit margin decreased by 5 p.p., leading
tosmaller EBITDA of RUB 5.9 bn (–9%).
↑0.3%
309
ths tonnes
PORK PRODUCTION
IN LIVE WEIGHT
↑2%
260
ths tonnes
SALES OF PIG
PRODUCTS
↑22%
39.6
RUB bn
REVENUES
↓5 p. p.
15
ADJUSTED EBITDA MARGIN
↓9%
5.9
RUB bn
ADJUSTED EBITDA
6.5
'20
5.9
'19
7.0
'18
6.3
'17
ADJUSTED EBITDA
RUB bn
5.9
'21

No.
4
LIVE PIG PRODUCTION
IN RUSSIA
of Rusagro’s Meat Business
in 2021
86
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BUSINESS OVERVIEW
Rusagro's Meat Business is represented by three vertically integrated
clusters: two clusters in Central Russia – in the Tambov and Belgorod
Regions, and one in the Russian Far East – in the Primorye Territory.
The cluster in the Primorye Territory was launched in 2021. Each
cluster comprises in-house breeding farms, livestock breeding
sites, a feed mill, a slaughterhouse and meat processing plant, and
aslaughterhouse refuse recycling plant.
LIVESTOCK BREEDING
Rusagro operates 23 commercial pig farms and
five herd breeding farms (the launch of two more
sites in Primorye Territory is scheduled for 2022).
In 2023, following completion of the remaining
two pig farms and full occupancy of all pig farms
in Primorye Territory, the Company's maximum
breeding sow herd size will be approximately 120 ths
sows. Depending on production figures, this size of
pig stock could produce around 390 ths tonnes of
live-weight pork for slaughter each year.
The Company's pig farms operate to international
standards and use the latest science and technology
in pig breeding and feeding. These pig farms are
modern highly-automated environmentally safe
production facilities, giving close attention to the
observance of biosecurity requirements and having a
manure removal and waste handling system in place.
COMPOUND FEED
PRODUCTION
LIVESTOCK
BREEDING
MARKETING
AND SALES
BREAKDOWN OF RUSAGRO'S HERD
OF BREEDABLE SOWS BY REGION
IN 2021,
%
53
389
Tambov
Region
Primorye
Territory
Belgorod
Region
SLAUGHTERHOUSE
REFUSE RECYCLING
Read more about the environmental impact
of the Meat Business and relevant measures
in Rusagro's ESG Report
SLAUGHTERING
AND DEBONING
PRODUCTION
OF CHILLED
SEMI-FINISHED PRODUCTS
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BUSINESS OVERVIEW
COMPOUND FEED PRODUCTION
BREAKDOWN OF RUSAGRO’S
COMPOUND FEED PRODUCTION
CAPACITIES BY REGION IN 2021
%
SLAUGHTERHOUSE AND MEAT PROCESSING PLANT
BREAKDOWN OF RUSAGRO’S
SLAUGHTERING CAPACITIES
BYREGION IN 2021
%
BREAKDOWN OF RUSAGRO’S
DEBONING CAPACITIES
BYREGION IN 2021
%
1.
The maximum annual slaughter and deboning capacity
depends on the labour efficiency and the number of shifts,
which may vary with the in-house and market supply of live
pork and the demand for finished products.
38
32
29
Tambov
Region
Primorye
Territory
Belgorod
Region
66
15
20
Tambov
Region
Primorye
Territory
Belgorod
Region
82
18
Tambov Region
Belgorod Region
Slaughtering and meat processing plants of
the Company cover all stages of processing
and production of finished goods: slaughter
line, deboning shop, chilled small and large cuts
shop, offal production shop, and slaughterhouse
refuse recycling shop. In 2021, the slaughtering
capacity was 680 heads per hour, including 130
heads per hour at the slaughterhouse in the
Primorye Territory, and 440 heads per hour at
the deboning shop (the launch of the deboning
shop in the Primorye Territory is scheduled for
2022)
1
. The main categories of products include
half-carcasses, large and small cuts, chilled
semi-finished products and offal. The Meat
Business has the Food Safety Management
System in place to drive out risks at all
production stages and adheres to the principle
of compliance with the Technical Regulation
on Meat Safety. All animals for slaughter come
from the Company's own pig farms.
The slaughterhouse refuse recycling shop
ensures deep processing of slaughter and
deboning waste. Blood is used to produce blood
meal; dead animal carcasses, scraps, bones and
rejected products are used to produce meat and
bone meal and fodder or technical fat. Some of
the products are formulated into feed, and some
are sold to other companies.
The livestock's feed requirements are fully
covered by the Company's three feed mills with
an annual production capacity of approximately
1.4 mn tonnes (+47% year-on-year), including
about 1 mn tonnes in Central Russia and 0.4
mn tonnes in the Primorye Territory. The mills
have granulated animal feed production lines in
place for all processing cycles. The production
technology laboratories offer chemical,
technical and bacteriological analyses with a
high degree of accuracy.
The storage capacity of the elevator in 2021
totalled 280 ths tonnes, including 120 ths
tonnes in the Primorye Territory. Moreover, the
Meat Business has grain crops storing sleeves
with a simultaneous storage capacity of 410
ths tonnes. With in-house storage facilities, the
Company can purchase ingredients at the most
optimal time during periods of low prices.
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BUSINESS OVERVIEW
75
ths tonnes
CAPACITY OF PORK
PRODUCTION IN LIVE WEIGHT
IN THE PRIMORYE CLUSTER
PRIMORYE
TERRITORY
6 pig farms
1 breeding farm
1 compound feed mills
1 slaughterhouse and meat
processing plant
TAMBOV
REGION
BELGOROD
REGION
9 pig farms
1 breeding farm
2 compound feed mills
1 slaughterhouse and meat
processing plant
9 pig farms
1 breeding farm
1 compound feed mills
1 slaughterhouse and meat
processing plant
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BUSINESS OVERVIEW
BRANDS
The Company has been selling the meat products under own trademark
– Slovo Myasnika (Butcher's Word) since 2016. Over the past five years,
the Company has achieved high levels of brand recognition and ensured
steady growth in market share in its category and consumer loyalty. The
brand's extensive product range is regularly reviewed to meet changing
market needs. For example, a range of meat products with a high vegetable
content and alternative meat without animal ingredients is going to be
launched in 2022. The products are sold in major federal retail chains and to
non-network retailers.
INVESTMENTS
RUSAGRO'S INVESTMENTS
IN THE MEAT BUSINESS
RUB bn
‘17
6.3
9.4
10.9
8.8
–8%
8.1
‘18 ‘19
‘20 ‘21
Project
OF CONSTRUCTION OF NEW PIG
FARMS IN THE PRIMORYE TERRITORY
Status as of 2021: four pig farms and one breeding farm, elevator
complex and feed mill, slaughter and deboning plant, and
slaughterhouse refuse recycling plant were launched
Plan for 2022: launch of two pig farms, one deboning line
Where: Primorye Territory, Mikhailovsky territory of priority
development
Facilities:
6pig farms for 18 ths sows
1 breeding farm for three ths purebred sow
1 seed production workshop
1 compound feed mill with an annual capacity of 300 ths
tonnes, one elevator with a storage capacity of 120 ths tonne,
as well as a capacity to store 200 ths tonnes in "sleeves"
1 slaughterhouse and deboning shop with a capacity
of680ths heads per year
1 slaughterhouse refuse recycling plant
Production capacity: 75 ths tonnes of pork in live weight
Cost: 37.5 RUB bn, excl. VAT
Construction time: 2016–2022
First production: mid-2021
Time to full production: mid-2023
In 2021, Rusagro's investments in the Meat
Business totalled RUB 8.1 bn, down 8% against
the previous year. The bulk of the funds (88%)
were allocated to business development,
mostly related to the launch of the vertically
integrated cluster project in the Primorye
Territory. Rescheduling this project was the
main contributor to the Company's year-on-
year increase in capital expenditure in the Meat
Business.
The Company spent 12% of its budget to
support the current capacities of the Meat
Business. Funds were used to overhaul a
number of the sites, to restore the integrity of
the buildings and improve the safety of the
livestock against the outside environment at
production sites, as well as to replace the tractor
fleet to ensure timely and quality application
of the liquid fraction of manure and removal of
fallen animals.
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AUTOMATION
AND INNOVATION
In 2019, the Meat Business approved a strategy
toupgrade the digital maturity of the business until
2025, which consists of three waves: "Certainty"
(2019–2021), "Digital Transformation in Action"
(2021–2024), and "Digital Company" (2024–
2025). In 2021, we mainly focused on five groups
ofprojects aimed at automation of key stages
ofthebusiness chain.
LIVESTOCK BREEDING
Automation of livestock breeding planning
processes using video analytics and machine
learning tools
Enhanced planning accuracy and improved production
performance
20222021
Product innovations
Apart from technology-related projects,
Rusagro's Meat Business is also weighing
options to generate additional profit
from processing by-products generated
at different stages of the production
chain. Thus, in 2021 the Segment decided
to explore the potential of insects
and algae in advanced processing of
manure and in additional production, for
instance, fodder protein, organic fertiliser
and chitin. This opportunities may
have the additional benefit of reducing
methane emissions from lagoon slurry
sedimentation.
COMPOUND FEED PRODUCTION
Automated process control system
Reduced downtime and improved equipment efficiency
20232021
STORAGE AND LOGISTICS
Multi-agent planning, traffic monitoring and
warehouse management systems (WMS)
Reduced logistics costs and upgraded performance
offinished goods warehouses
20222021
MEAT PROCESSING
AND SLAUGHTERHOUSE
WASTE UTILIZATION
Robotisation of packaging processes
Reduced staff costs
20232021
PROCUREMENTS
Automation of procurement processes
Streamlining and ensuring an end-to-end procurement
process to improve efficiency
20222021
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OPERATING RESULTS
PRODUCTION
65
78
86
88
89
‘17
1,773
1,821
2,081
2,563
+2%
2,621
‘18 ‘19 ‘20 ‘21
Commercial pig
stock
Share of own commercial pig
stock for slaughter, %
‘17
207
204
243
308
+0.3%
309
‘18 ‘19 ‘20 ‘21
‘17
603
567
751
886
+1%
895
‘18 ‘19 ‘20 ‘21
RUSAGRO'S ACTUAL COMMERCIAL
PIG STOCK
ths heads
RUSAGRO’S PORK PRODUCTION
IN LIVE WEIGHT FOR SLAUGHTER
ths tonnes
RUSAGRO’S COMPOUND FEED
PRODUCTION VOLUME
ths tonnes
↑0.3%
309
ths tonnes
RUSAGRO’S PORK PRODUCTION
IN LIVE WEIGHT IN 2021
↑1p.p.
89
ths tonnes
SHARE OF OWN COMMERCIAL
LIVESTOCK FOR SLAUGHTER
IN 2021
In the reporting period, the size of the commercial slaughter livestock rose
by 2% (up 51 ths head) due to increased capacity and improved productivity
of the slaughterhouse by upgrading the butchers' skills and reducing
thedowntime. However, new outbreaks of COVID-19, delays in equipment
deliveries and a rescheduled launch of the deboning line in the Primorye
Territory resulted in a 3% reduction in the size of the deboned livestock
(down 50 ths heads).
Compound feed production in 2021 increased by 1% (up 9 ths tonnes) to 895
ths tonnes through the improved labour productivity. In order to enhance
the quality of its products, the Company re-equipped its production
laboratories and upgraded its equipment.
In 2021, Rusagro's commercial herds grew by 2% and totalled 2.6 mn
heads. Commercial pork production was 309 ths tonnes, 0.9 ths tonnes
(+0.3%) higher than in the previous year. Despite the high number
ofAfrican swine fever (ASF) outbreaks, the abnormal summer heat
and issues with the quality of feed ingredients, the Company managed
toachieve positive results. That was made possible by prompt measures
to prevent the introduction of the virus to the sites, increased livestock
security and the establishment of a fodder quality control department
with thehelp of international experts. Moreover, the reporting period
saw thelaunch ofaproject in the Primorye Territory, where the first 5 ths
tonnes oflivestock were produced, as well as the increased productivity
ofthemain herd at Central Russia's sites.
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SALES
↑2%
260
ths tonnes
RUSAGRO’S PORK PRODUCTS
SALES IN 2021
RUSAGRO’S SALES VOLUMES OF PORK PRODUCTS IN RUSSIA
ths tonnes
Large cuts
and industrial cuts
Live pork
Slaughter-
house refuse
products
‘17
176
169
208
254
+2%
260
‘18 ‘19
‘20 ‘21
40 (–5 p. p.) 22 (3 p. p.)
12
(–2 p. p.)
11
(0 p. p.)
11 (2 p. p.)
Half-carcass
Offal
Semi-finished
products
4 (2 p. p.)
OPERATING RESULTS
Consumer products
In 2021, 22% of Rusagro's Meat Business sales and 30% of its revenues
came from the consumer segment (excluding export sales). The year-
on-year decrease of 3 and 6 p.p., respectively, is attributable to a more
favourable pricing environment in the industrial customer channel.
As part of its retail market penetration strategy, Rusagro continued to
refine the position of its own brand of meat products, Slovo Myasnika
(Butcher's Word), in the Russian market despite rising market prices.
Sales of own-brand products went up by 16% and stood at 23 ths tonnes.
According to the retail audit, in the Modern Retail channel conducted
by international agency – AC Nielsen, the market share of the Slovo
Myasnika (Butcher's Word) brand grew by 0.5 p.p and stood at 8.6%
1
in 2021. Brand awareness (prompted) in the Central Federal District,
according to Millward Brown, upgraded to 85% (+11 p.p.), and across
Russia – to 73% (+15 p.p.).
‘17
3
11
13
20
+15%
23
‘18
‘19
‘20 ‘21
SALES VOLUME OF MEAT
BRANDED PRODUCTS
ths tonnes
Following the slight expansion of production, Rusagro has been racking up the sales of meat products.
In 2021, the Meat Business sold 260 ths tonnes of pork products (+2%), including 230 ths tonnes of
meat processing products (+4%) and 31 ths tonnes of livestock (–9%). Sales of half-carcasses (+18%,
or 9 ths tonnes) and half-finished products (+24%, or 6 ths tonnes) soared due to the rise in prices of
half-carcasses and the accomplishment of targets for the development of the half-finished products
category. Sales to the refuse recycling shop almost doubled (+91%, or 5 ths tonnes) as a result of
reduced shipments of non-commercial livestock to mitigate epizootic risks.
1.
Including the sales under the Myasnaya Liga (Meat League) brand.
93
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OPERATING RESULTS
Exports
In 2021, Rusagro increased its exports of
meat products by 19% to 37 ths tonnes (up 6
ths tonnes), representing 16% (+2 p.p.) of the
Company's meat products sales. The key driver
of this growth was a vastly improved customer
base in 2020, a rapid review of output products
and a reorientation of supplies between open
markets. Almost half of the exported volume
(46%) fell within the "large cuts and industrial
cuts" category, which experienced the largest
growth (46% (+5 ths tonnes) during the
reporting period. The remaining 38% and 16%
were exports of half-carcasses and by-products,
respectively.
47
(10 p. p.)
32
(5 p. p.)
16
(11 p. p.)
3
(–8 p. p.)
Ukraine
Vietnam
Belarus
Hong Kong
1
(0 p. p.)
Others
EXPORTS OF RUSAGRO’S
MEAT BUSINESS PRODUCTS
ths tonnes
‘17
4
11
15
31
+19%
37
‘18
‘19
‘20 ‘21
EXPORT DESTINATIONS
OF RUSAGRO’S MEAT PRODUCTS
IN2021
%
Rusagro accounts for 36% of deliveries to near-
abroad countries and 6% of deliveries to far-
abroad countries. The main export destinations
for Rusagro's meat products are Ukraine
and Belarus – 47% and 32% of all exports,
respectively. Opening a representative office
in Vietnam helped to double its share over the
past year, from 8% to 16%. All three destinations
showed an increase in supplies, partly due to
lower exports to Hong Kong as a result of the
port closure.
FINANCIAL RESULTS
The higher market prices for pork products
in 2021 increased Rusagro's meat segment
revenues by 22% and reached RUB 39.6 bn (up
RUB 7.2 bn). However, adjusted earnings before
interest, tax, depreciation and amortisation
(EBITDA) margin still dropped from 20% to
15% due to increased costs. Thus, expenditure
on feed ingredients, such as cereals and meal,
amino acids, vitamin and mineral supplements,
grew. The costs of the sites launched in 2021
in the Primorye Territory also had a large
bearing as the stage of their production cycle
had not yet allowed compensating for the
costs of raising livestock. As a result, adjusted
EBITDA showed a year-on-year decrease of 9%,
amounting to RUB 5.9 bn.
‘17
20.5
22.4
25.8
32.4
+22%
39.6
‘18 ‘19
‘20 ‘21
31 31
23
20
15 (−5 p.p.)
‘17
6.3
7.0
5.9
6.5
−9%
5.9
‘18 ‘19
‘20 ‘21
Adjusted EBITDA margin, %
REVENUES OF RUSAGRO’S
MEAT BUSINESS
RUB bn
ADJUSTED EBITDA OF RUSAGRO’S
MEAT BUSINESS
RUB bn
↑22%
39.6
RUB bn
REVENUES OF RUSAGRO’S
MEAT BUSINESS IN 2021
94
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Sugar
For sugar production in 2021, Rusagro
processed 4.6 mn tones of sugar beet,
with 75% of this volume grown
on the Company’s fields.
BUSINESS

Overview
Though sugar production in the 2021/2022 season showed a slight
recovery (+8%, or +348 ths tonnes) from a five-year record low
of5.0 mn tonnes in the 2020/2021 season, the domestic market
in2021 was still under pressure. As a result, exports slowed down
visibly (–62%, or –755 ths tonnes) and the market prices revived.
↑2%
5.6
mn tonnes
SUGAR PRODUCTION
IN RUSSIA
↑1.4p.p.
15
RUSAGRO'S SHARE IN SUGAR
PRODUCTION IN RUSSIA
↓62%
454
ths tonnes
SUGAR EXPORTS
FROM RUSSIA
↓12%
158
ths tonnes
SUGAR IMPORTS
TO RUSSIA
Interactive
version
of the Russian sugar market
in 2021
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PRODUCTION
Comment:
sugar output data include sugar produced
from molasses.
Source:
Soyuzrossahar
According to the Union of Russian Sugar Producers (Soyuzrossakhar),
sugar production for 2021 calendar year fell marginally (–2%), reaching 5.6
mn tonnes. The 1H production (in the 2020/2021 season) amounted to 0.4
mn tonnes, and the 2H production (in the 2021/2022 season) – to 5.2 mn
tonnes. About 0.3 mn tonnes more could be produced in 2022 before the
end of the 2021/2022 season.
The sugar output decline is attributable to decline of sugar content of sugar
beet to 17.3% (–2 p.p.) in 2021/2022 season, with concurrent increase in
beet processing volumes amid better crop results. Thus, in 2021 the plants
processed 37.7 mn tonnes of beet (+7% in 2020), and in the 2021/2022
season they processed 39.0 mn tonnes, which is 25% more than in the
previous season.
With annual sugar consumption at 5.8–6.0 mn tonnes in Russia, domestic
demand during the reporting period was covered by the 2020-end high
carry-overs (5.3 mn tonnes).
VOLUME OF SUGAR BEET
PROCESSED FOR THE CALENDAR
YEAR
mn tonnes
SUGAR PRODUCTION IN RUSSIA
FOR THE CALENDAR YEAR
mn tonnes
VOLUME OF SUGAR BEET
PROCESSED FOR THE SEASON
mn tonnes
SUGAR PRODUCTION VOLUME
FOR THE SEASON
mn tonnes
‘21/‘22‘20/‘21‘19/‘20‘18/‘19‘17/‘18
6.6
6.0
7.8
5.2
+7%
5.6
‘21/‘22‘20/‘21‘19/‘20‘18/‘19‘17/‘18
46.5
40.9
46.4
35.1
37.7
+7%
‘21/‘22‘20/‘21‘19/‘20‘18/‘19‘17/‘18
6.6
6.2
7. 2
5.7
–2%
5.6
‘21/‘22‘20/‘21‘19/‘20‘18/‘19‘17/‘18
17.9
18.0
19.2
17.3
16.9
46.2
38.5
50.4
31.3
+25%
39.0
Sugar content of sugar beet, %
97
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KEY
PLAYERS
By the end of 2021, five companies accounted
for 68% of Russia's sugar production. Prodimex
leads the market with a 19% share (–1.6 p.p.).
With a 15% share (+1.4 p.p.), Rusagro ranks third.
The variance in companies' share of total sugar
output in the reporting period is explained
bythe different size of the sugar beet harvested
inthe regions where the companies' sugar
plants operate.
↑1 .4 p. p.
15
RUSAGRO'S SHARE
IN SUGAR PRODUCTION
IN RUSSIA IN 2021
Comment:
sugar output data include sugar produced
from molasses.
Source:
Soyuzrossahar
No.
3
15
Rusagro
19
Prodimex
12
Sucden
+ TRIO
7
Agrocomplex
32
Others
16
Dominant
The largest
sugar
producers
in Russia in 2021,%
98
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EXPORTS AND IMPORTS
In 2021, white sugar exports from Russia fell by 62% (down 755 ths tonnes) and amounted to 454 ths
tonnes. Reduced domestic sugar output drove down supplies to near-abroad countries, in particular
year-on-year exports to CIS countries dropped by 65% (down 594 ths tonnes). Supplies to far-abroad
countries totalled 2 ths tonnes (down 84 ths tonnes), returning to pre-2020 levels.
Belarus, which has traditionally been the largest supplier, ramped down the sugar production and thus
their imports of white sugar to Russia continued the downward trend for the third consecutive year. In
2021, this figure dropped by 12% year-on-year and reached 158 ths tonnes.
SUGAR EXPORT BREAKDOWN
BY DESTINATION IN 2021
%
EXPORTS AND IMPORTS
OF WHITE SUGAR
ths tonnes
PRICES
The year-average price of sugar in Krasnodar in
2021 amounted to 39.9 RUB/kg, excl. VAT. The
positive price trend is due to the poor sugar beet
harvest in the last two seasons after a record
high harvest in the 2019/2020 season, which
led to prices falling to their lowest level in 10
years. The recovery in market prices were also
influenced by the dollar and rising global prices
– Sugar#11 contact prices are up 39% according
to the ICE.
AVERAGE SUGAR PRICES IN RUSSIA
BASED ON THE PRICE INDEX
IN KRASNODAR
RUB/kg excl. VAT
‘21‘20‘19‘18‘17
28.7
24.8
27. 5
39.9
28.1
+45%
‘21‘20‘19‘18‘17
582
378
687
1,208
454
–62%
–12%
Exports Imports
258
322
242
166
158
Kazakhstan
Ukraine
Kyrgyzstan
Others
Tajikistan
Armenia
63
16
9
4
3
4
Source:
railway traffic data
and the Federal Customs Service data
Source:
Institute for Agricultural Market Studies
(IKAR)
State tariff regulation
A price cap on retail sugar was in effect from
20 December 2020 to 1 October 2021 to
protect Russian consumers. Thus, sugar pro-
ducers agreed to keep ex-works sugar price
(for 50-kg bag) not higher than 36 RUB/kg
incl. VAT and retailers – to keep retail price
not higher than 46 RUB/kg incl. VAT.
99
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Operating results
Financial results
Rising sugar market prices in 2021 pushed the revenues of Rusagro's Sugar Segment up by29%,
which totalled RUB 36.4 bn (up RUB 8.2 bn). Coupled with a 2 p.p. improvement in EBITDA
margin, this led to a 41% increase in adjusted EBITDA (up RUB 2.6 bn) – up to RUB 9.0 bn.

No.
3
SUGAR PRODUCER
IN RUSSIA
↑4%
791
ths tonnes
SUGAR OUTPUT
VOLUME
↓5%
769
ths tonnes
SUGAR SALES
VOLUMES
↑29%
36.4
RUB bn
REVENUES
↑2p.p.
25
ADJUSTED EBITDA MARGIN
↑41%
9.0
RUB bn
ADJUSTED EBITDA
6.4
'20
4.0
'19
4.9
'18
5.5
'17
9.0
'21
ADJUSTED EBITDA
RUB bn
Results
of Rusagro’s Sugar Business
in 2021
100
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ASSETS OVERVIEW
SUGAR PLANTS
In 2021, maximum sugar beets processing capacity of Rusagro’s plants
remained flat with the previous year – 53,850 tonnes of beets per day. The
maximum production capacity of the Company during the season time
(from August to July) is about 900 ths tonnes of beet sugar, excluding
sugar from molasses
1
.
Rusagro's sugar beet processing plants produce two main by-products –
pulp and molasses. The plants pelletise the pulp and sell it to third parties,
while the molasses is used for additional sugar production and betaine
production. The Company operates two desugarisation facilities at the
Znamensky and Chernyansky sugar plants, with a total processing capacity
of 310 ths tonnes of molasses per season. This enables the Company to
produce an additional 120 ths tonnes of sugar and 30 ths tonnes of betaine
per year, making Rusagro one of the world leaders in the production of this
amino acid.
CAPACITY OF RUSAGRO’S SUGAR
PROCESSING PLANTS
ths tonnes/day
1.
The estimate of Rusagro's maximum sugar output is based on a beet processing capacity of 53,850 tonnes per day, 115 plants' working days
and a sugar yield of 14.5%. The number of working days and sugar yield can vary with a number of parameters, including the market supply
of beets and their sugar content level.
BEET SUGAR
PRODUCTION
EXTRACT SUGAR
PRODUCTION
PRODUCTION
OF CEREALS
MARKETING
AND SALES
CEREAL PRODUCTION
The Company's assets include JSC Gerkules cereal plant, a grain-processing
facility with its own packaging line. The plant produces buckwheat and
crushed buckwheat for the B2B channel and packaged buckwheat and rice
for the B2C channel.
~1.0
mn tonnes
RUSAGRO'S SUGAR
PRODUCTION CAPACITY,
INCLUDING SUGAR FROM
MOLASSES
‘21‘20‘19‘18‘17
53.0
53.9 53.9 53.9 53.9
Read more about the environmental impact
of the Meat Business and relevant measures
in Rusagro's ESG Report
101
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39
Tambov
Region
30
Belgorod
Region
20
Kursk
Region
10
Orel
Region
TAMBOV
REGION
BELGOROD
REGION
KURSK
REGION
OREL
REGION
OTRADINSKY
KRIVETSKY
CHERNYANSKY
NIKA
VALUYSKY
ZHERDEVSKY
ZNAMENSKY
NIKIFOROVSKY
KSHENSKY
CAPACITY OF RUSAGRO’S SUGAR
PLANTS BY REGIONS IN 2021,
%
9
sugar plants
2
desugarisation
facilities
Rusagro’s Sugar Business is represented by nine
sugar plants located in the Tambov, Belgorod,
Kursk, and Orel Regions in close proximity to the
sugar beet cultivation areas of the Company’s
Agriculture Business. In the Tambov Region, the
Company runs the Znamensky, Nikiforovsky and
Zherdevsky sugar plants, in the Belgorod Region
– Chernyansky, Nika and Valuysky plants, in the
Kursk Region – Krivetsky and Kshensky plants,
in the Orel Region – Otradinsky plant.
ASSETS OVERVIEW
102
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BRANDS
RUSAGRO'S INVESTMENT
IN THE SUGAR BUSINESS
RUB bn
↓33%
1.0
RUB bn
RUSAGRO'S
INVESTMENTS
IN THE SUGAR
BUSINESS IN 2021
INVESTMENTS
ASSETS OVERVIEW
‘21‘20‘19‘18‘17
3.4
3.8
3.4
1.5
1.0
–33%
The Company's product portfolio includes five sugar brands of different price brackets: Russkii Sakhar,
Chaikofsky, Brauni, Mon Café and Khoroshiy, as well as the Tyoplye Traditsii brand. Over years, the
Company lead the way in the consumer sugar market, and the Russkii Sakhar, Chaikofsky, Brauni and
Mon Cafe brands hold the first positions in their relevant segments. The Company's sugar brands are
also the most sought-after brands among Russian consumers – Russkii Sakhar and Chaikofsky brands
enjoy consistently high recognition and loyalty.
Due to the lack of new capital-intensive projects in 2021, Rusagro's
investments in development and maintenance of the Sugar Business
posted the negative growth (down 33% year-on-year) and amounted to
RUB 1.0 bn. About half (45%) of the investments in the reporting period
were allocated to maintain the existing facilities of the Sugar Business
– automation, replacement of equipment, reconstruction of production
facilities and augmentation of the operational reliability. The development
projects included final works on the desugarisation station in the Belgorod
Region and expansion of pulp granulation capacities.
103
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AUTOMATION
AND INNOVATION
The strategic goal of Rusagro's Sugar
Business is to reduce sugar losses
in all sugar beet production cycles,
and Industry 4.0's best practices
andsolutions – from physical devices
to bio-engineering solutions – are
being used to achieve this goal. The
most active work is focused in three
key areas, which include raw material
management, production, and
storage and logistics of products.
Product innovations
In addition to technology-related projects, Rusagro's Sugar Business
is exploring innovative products as alternatives to traditional sugar.
In 2021, for example, the Company decided to launch long-term
projects in 2022 to produce a new generation of zero-glycaemic
index sweeteners to replace fructose and synthetic sweeteners
indiabetic and dietary products, and to produce sweet proteins from
micro-organisms for use in various food industries.
PROCUREMENT
OF RAW MATERIALS
Automated beet procurement and plant
logistics management system
Reducing losses and higher accuracy of sugar beet
residue management
20222021
SUGAR PRODUCTION
Sugar production monitoring system with
elements of artificial intelligence (AI)
Unbiased production data and reduced losses in sugar
beet processing
20212019
STORAGE AND LOGISTICS
Automation of outgoing inventory
and introduction of a transportation
management system (TMS) based on unique
mathematical algorithms
Reduced cost of sales delivery by devising optimal routes
2022
104
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OPERATING RESULTS
PRODUCTION
The beet processing volume in 2021 totalled 4.6 mn tonnes (+13%) and
in the 2021/2022 season – 4.7 mn tonnes (+27%). Similar to the last year,
75% of the beets were purchased from Rusagro's Agriculture Business. In
the reporting season, the plants worked for 74 to 131 days (74 to 100 days
in the 2020/2021 season), from 1 September 2020 to 16 January 2021.
The average sugar content of beets at a time of reception was 19.0% (not
including sugar recovered from molasses), down 1 p.p. against the previous
season figure.
For the last year, Rusagro produced 791 ths tonnes of sugar, +4% year-on-
year (up 27 ths tonnes). This figure includes 84 ths tonnes (–20%) of sugar
that was recovered from molasses processed of beets harvested in the
2020/2021 season, and 12 ths tonnes of sugar from sugar beets from tolling
arrangements. The total sugar output in the 2021/2022 season was 733
ths tonnes, +18% season-on-season (up 31 ths tonnes), excluding molasses
sugar.
RUSAGRO’S
SUGAR PRODUCTION
ths tonnes
↓5%
769
ths tonnes
RUSAGRO’S SUGAR
SALES IN 2021
SALES VOLUMES OF KEY PRODUCTS
FROM RUSAGRO'S SUGAR PLANTS
ths tonnes
SALES
In 2021, sugar sales amounted to 769 ths
tonnes, down 5% year-on-year (down 43 ths
tonnes). The negative growth was caused
bylower sugar carry-overs at the end of
2020 due to cut-back in sugar production as
compared to 2019. In addition to sugar, we sold
180 ths tonnes of pulp (–24%), 25 ths tonnes
of betaine (–7%) and 11 ths tonnes of cereals
(–40%). Thesales of pulp and betaine were
driven down by the decline in beet processing
volume in the 2020/2021 season. In the
reporting year, around 76% of all products sold
were in theB2B segment and 24% – in the B2C
segment.
↑4%
791
ths tonnes
RUSAGRO’S SUGAR
PRODUCTION IN 2021
‘21‘20‘19‘18‘17
984
773
881
764
+4%
791
‘21‘20‘19‘18‘17
1,108
905
1,201
1,075
−9%
973
900
702
1,022
812
769 (−5%)
201
192
171
236
180 (−24%)
7
10
8
27
25 (–7%)
Sugar Pulp
Betaine
105
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Consumer segment
In 2021, 30% of sugar sales (+8 p.p.) fall on the consumer segment. Sugar
sales of the own branded products amounted to 146 ths tonnes, 4% below
the 2020 level. During the reporting period, Russkii Sakhar and Chaikofsky
brands retained theire leading positions in the Russian white cube sugar
market, while Brauni led the way in the brown cube sugar market.
According to AC Nielsen's survey for November 2021, the combined market
share of Rusagro's four sugar brands – Russkii Sakhar, Chaikofsky, Mon
Cafe and Khoroshiy – was 48% (+2 p.p.) on the cube white sugar market:
Russkii Sakhar gained 33% market share (+1 p.p.) and Chaikofsky – 14% (+3
p.p.). Brauni accounted for 28% (–1 p.p.) of the brown cube sugar market in
Russia.
According to Tiburon data, in 2021 Russkii Sakhar and Chaikofsky brands
again showed a high level of brand recognition – for Russkii Sakhar it was
86%, for Chaikofsky – it stood at 61%.
↓21%
202
ths tonnes
EXPORTS OF RUSAGRO’S
SUGAR BUSINESS IN 2021
↑2 p.p.
48
SHARE OF RUSAGRO’S
BRANDS ON THE WHITE
CUBE SUGAR MARKET
IN 2021
EXPORTS OF RUSAGRO’S
SUGAR BUSINESS
ths tonnes
OPERATING RESULTS
Exports
In 2021, Rusagro exported 202 ths tonnes of products, down 21% year-on-
year. The key export product for the Sugar Business in terms of volume of
supplies is pulp; its exports in the reporting period totalled 167 ths tonnes
(–18%). The top pulp purchasers were Ireland (51 ths tonnes, +283% year-
on-year), Norway (24 ths tonnes, –20%), and China (23 ths tonnes, –45%).
Exports of betaine amounted to 23 ths tonnes (–15%), including 9 ths
tonnes (+79%) destined for Belgium. Due to insignificant growth in Russian
sugar output in 2021, sugar exports almost halved in that period (–48%)
and reached 12 ths tonnes.
‘21‘20‘19‘18‘17
Sugar Pulp
Betaine
199
196
192
255
−21%
202
143
145
157
204
167
(−18%)
7
10
8
27
23
(−15%)
49
41
27
24
12
(−48%)
106
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FINANCIAL RESULTS
In 2021, Rusagro's Sugar Segment revenues rose by 29% to RUB 36.4 bn
(up RUB 8.2 bn), despite declining sales volumes (–5%) on the back of lower
sugar production in the 2020/2021 season. As some of the sugar sold in
the reporting period was produced in the previous season with a lower
production cost, the growth rate of sugar sales revenue was higher than
the growth of sugar beet procurement costs. This resulted in an increase in
adjusted EBITDA margin by 2 p.p. to 25% and in adjusted EBITDA by 41% to
RUB 9.0 bn (up RUB 2.6 bn).
↑29%
36.4
RUB bn
REVENUES OF RUSAGRO’S
SUGAR BUSINESS IN 2021
↑41%
9.0
RUB bn
ADJUSTED EBITDA OF
RUSAGRO’S SUGAR BUSINESS
IN 2021
↑2 p.p.
25
ADJUSTED EBITDA MARGIN
OF RUSAGRO’S
SUGAR BUSINESS
REVENUES OF RUSAGRO’S
SUGAR BUSINESS
RUB bn
ADJUSTED EBITDA OF RUSAGRO’S
SUGAR BUSINESS
RUB bn
‘21‘20‘19‘18‘17
30.4
24.1
31.2
28.1
+29%
36.4
‘21‘20‘19‘18‘17
20
13
23
25
(+2 p. p.)
18
5.5
4.9
4.0
6.4
+41%
9.0
Adjusted EBITDA margin, %
107
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04
CONSOLIDATED
FINANCIAL
RESULTS
ANNUAL REPORT 2021
ABOUT RUSAGRO
01
STRATEGIC
REPORT
02
REVIEW OF RUSAGRO'S
BUSINESS RESULTS FOR 2021
03
CORPORATE
GOVERNANCE
05
APPENDICES
06
109 Financial results review
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

Financial
results
review
Rusagro annually prepares Consolidated and Parent
Company IFRS financial statements published together with
Independent Auditor’s Report. In 2021, the Company replaced
PricewaterhouseCoopers Limited with KPMG Limited Chartered
Accountants as an auditor.
According to the Auditor, the prepared consolidated financial
statements gave a true and fair view of the consolidated financial
position of ROS AGRO PLC and its subsidiaries as of 31 December
2021, and of its consolidated financial performance and its
consolidated cash flows for the year ended in accordance with IFRS
as adopted by the European Union and the requirements of the
Cyprus Companies Law, Cap 113.
Interactive
version
Full version of the Audited Consolidated Statements of ROS AGRO PLC for
2021 and the Audited Parent Company Statements of ROS AGRO PLC for
2021 is available at the official web page of the Company.
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as of 31 December 2021, thousands of Russian roubles
31.12.2021 31.12.2020
ASSETS
Current assets
Cash and cash equivalents 46,462,179 11,866,798
Restricted cash 47 143,637
Short-term investments 21,001,760 19,583,523
Trade and other receivables 12,558,401 9,512,286
Prepayments 5,414,032 2,941,224
Current income tax receivable 1,532,726 646,162
Other taxes receivable 8,321,193 5,506,675
Inventories 69,756,363 63,266,389
Short-term biological assets 7,752,670 5,734,979
Total current assets 172,799,371 119,201,673
Non-current assets
Property, plant and equipment 119,159,412 87,519,088
Inventories intended for construction 1,604,570 3,353,330
Right-of-use assets 7,346,538 6,934,567
Goodwill 2,364,942 2,364,942
Advances paid for property, plant and equipment 7,355,467 6,905,003
Long-term biological assets 2,744,863 2,528,128
Long-term investments 42,527,657 42,692,320
Investments in associates 359,782 257,782
Deferred income tax assets 4,835,268 3,566,168
Intangible assets 1,144,057 619,793
Other non-current assets 79,125 205,793
Total non-current assets 189,521,681 156,946,914
TOTAL ASSETS 362,321,052 276,148,587
110
Consolidated financial results / FINANCIAL RESULTS REVIEW
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

31.12.2021 31.12.2020
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings 108,748,840 51,753,475
Lease liabilities 1,130,831 943,859
Trade and other payables 15,440,635 16,016,138
Current income tax payable 464,471 69,546
Other taxes payable 7,454,558 4,096,199
Provisions for other liabilities and charges 494,709 179,796
Total current liabilities 133,734,044 73,059,013
Non-current liabilities
Long-term borrowings 63,975,025 63,175,720
Government grants 9,325,530 8,536,899
Lease liabilities 5,535,014 4,855,508
Deferred income tax liabilities 1,876,244 487,049
Total non-current liabilities 80,711,813 77,055,176
TOTAL LIABILITIES 214,445,857 150,114,189
EQUITY
Share capital 12,269 12,269
Treasury shares (490,607) (490,607)
Share premium 26,964,479 26,964,479
Share-based payment reserve 1,313,691 1,313,691
Fair value reserve 49,486 49,486
Retained earnings 120,080,307 98,185,038
Equity attributable to owners of ROS AGRO PLC 147,929,625 126,034,356
Non-controlling interest (54,430) 42
TOTAL EQUITY 147,875,195 126,034,398
TOTAL LIABILITIES AND EQUITY 362,321,052 276,148,587
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as of 31 December 2021, thousands of Russian roubles
111
Consolidated financial results / FINANCIAL RESULTS REVIEW
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR
ended 31 December 2021, thousands of Russian rouble (unless otherwise stated)
31.12.2021 31.12.2020
Sales 222,932,439 158,971,035
Net gain on revaluation of biological assets and agricultural produce 3,409,309 5,890,447
Cost of sales (169,248,281) (121,132,658)
Net (loss)/gain from trading derivatives (5) 10,552
Gross profit 57,093,462 43,739,376
Distribution and selling expenses (10,475,137) (9,760,841)
General and administrative expenses (10,975,898) (7,377,449)
Reversal of provision/(provision) for impairment of loans issued 4,574,481 (5,070,598)
Other operating income/(expenses), net 2,334,177 2,293,017
Operating profit 42,551,085 23,823,505
Interest expense (5,498,991) (4,804,995)
Interest income calculated using the effective interest method 6,511,247 5,122,640
Other similar interest income 2,099,641 2,042,176
Net loss from bonds held for trading (1,630) (15,698)
Other financial income/(expenses), net (705,356) (1,844,130)
Profit before income tax 44,955,996 24,323,498
Income tax expense (3,522,144) (26,771)
Profit for the year 41,433,852 24,296,727
112
Consolidated financial results / FINANCIAL RESULTS REVIEW
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

31.12.2021 31.12.2020
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Gains less losses on investments in equity securities at fair value through other comprehensive
income
– 56,556
Income tax relating to other comprehensive income – (7,070)
Total comprehensive income for the year 41,433,852 24,346,213
Profit/(loss)is attributable to:
- Owners of ROS AGRO PLC 41,477,865 24,359,786
- Non-controlling interest (44,013) (63,059)
Profit for the year 41,433,852 24,296,727
Total comprehensive income/(loss) is attributable to:
- Owners of ROS AGRO PLC 41,477,865 24,409,272
- Non-controlling interest (44,013) (63,059)
Total comprehensive income for the year 41,433,852 24,346,213
Earnings per ordinary share for profit attributable to the owners of ROS AGRO PLC,
basic and diluted (in RR per share)
1,541.57 905.39
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR
ended 31 December 2021, thousands of Russian rouble (unless otherwise stated)
113
Consolidated financial results / FINANCIAL RESULTS REVIEW
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR
ended 31 December 2021, thousands of Russian rouble
31.12.2021 31.12.2020
Cash flows from operating activities
Profit before income tax 44,955,996 24,323,498
Adjustments for:
Depreciation and amortization 13,945,546 10,794,046
Interest expense 10,566,994 6,448,154
Government grants (7,846,960) (3,216,290)
Interest income (8,610,888) (7,164,816)
Net loss/(gain) on disposal of property, plant and equipment 4,424 (335,640)
Net gain on revaluation of biological assets and agricultural produce (3,409,309) (5,890,447)
Change in provision for impairment of loans issued (4,574,481) 5,070,598
Change in provision for net realizable value of inventory 1,240,531 732,238
Interest expense on leases 591,558 580,276
The result from early repayment of the loan - 131,363
Change in provision for impairment of receivables and prepayments 824,151 13,592
Foreign exchange loss /(gain), net (59,354) 1,698,846
Lost harvest write-off 272,407 188,536
Net loss from bonds held for trading 1,630 15,698
Change in provision for impairment of advances paid for property, plant and equipment 26,084 (29,620)
Change in other provisions 314,918 179,796
Gain on other investments (754,538) (560,568)
Realized deferred day-one gain (552,748) (993,558)
Loss on disposal of other assets 256,144 -
Gain on SolPro loans redemption (605,233) -
Other non-cash and non-operating expenses/(income), net 234,325 (87,031)
Operating cash flows before working capital changes 46,821,197 31,898,671
114
Consolidated financial results / FINANCIAL RESULTS REVIEW
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

31.12.2021 31.12.2020
Change in trade and other receivables and prepayments (6,377,712) (1,920,133)
Change in other taxes receivable (2,814,518) (1,157,275)
Change in inventories (4,236,443) (13,280,552)
Change in biological assets (2,340,945) (1,888,960)
Change in trade and other payables 82,068 (209,572)
Change in other taxes payable 3,278,845 708,164
Cash generated from operations 34,412,492 14,150,343
Income taxes paid (3,679,541) (2,033,327)
Net cash from operating activities 30,732,951 12,117,016
Cash flows from investing activities
Purchases of property, plant and equipment (42,029,048) (12,405,295)
Purchases of intangible assets (1,042,618) (418,808)
Purchases of land lease rights (68,772) (86,729)
Proceeds from sales of property, plant and equipment 896,286 687,757
Purchases of inventories intended for construction (476,322) (1,660,923)
Change in cash on bank deposits (18,000,000) -
Purchases of associates (102,000) (92,712)
Purchases of bonds with maturity over three months - (197,523)
Proceeds from sales of bonds with maturity over three months 220,282 -
Purchases of loan issued (2,256,313) (13,829)
Loans repaid 22,959,494 1,012,854
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR
ended 31 December 2021, thousands of Russian rouble
115
Consolidated financial results / FINANCIAL RESULTS REVIEW
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

31.12.2021 31.12.2020
Movement in restricted cash 140,894 (143,454)
Interest received 8,786,038 4,808,803
Dividends received 754,600 560,568
Purchases of other investments (19,083) -
Proceeds from sales of other investments 18,000 -
Proceeds from sales of other assets 217,591 -
Proceeds from sales of other investments 434,632 65,938
Net cash used in investing activities (29,566,339) (7,883,353)
Cash flows from financing activities
Proceeds from borrowings 107,856,022 77,932,773
Repayment of borrowings (52,668,951) (65,389,365)
Interest and other finance cost paid (4,591,935) (4,196,451)
Purchases of non-controlling interest (66,000) -
Dividends paid to owners of ROS AGRO PLC (19,417,565) (5,134,426)
Proceeds from government grants 2,879,218 2,192,483
Repayment of lease liabilities-principal (335,167) (123,044)
Other financial activities 21,631 -
Net cash from financing activities 33,677,253 5,281,970
Effect of exchange rate changes on cash and cash equivalents (248,484) 180,386
Net increase in cash and cash equivalents 34,595,381 9,696,019
Cash and cash equivalents at the beginning of the year 11,866,798 2,170,779
Cash and cash equivalents at the end of the year 46,462,179 11,866,798
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR
ended 31 December 2021, thousands of Russian rouble
116
Consolidated financial results / FINANCIAL RESULTS REVIEW
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

2021 Sugar Meat Agriculture Oil and Fat Other Eliminations Total
Sales 36,360,566 39,628,064 41,881,010 125,236,601 719,452 (20,893,254) 222,932,439
Net (loss) / gain on revaluation
ofbiological assets and agricultural
produce
– (370,486) 2,609,949 – – 1,169,846 3,409,309
Cost of sales (26,850,141) (33,744,934) (18,773,771) (108,855,523) (371,867) 19,347,955 (169,248,281)
incl. Depreciation (2,766,162) (3,965,508) (2,547,072) (2,877,234) (9,186) (85,607) (12,250,769)
Net loss from trading derivatives – (5) – – – – (5)
Gross profit 9,510,425 5,512,639 25,717,188 16,381,078 347,585 (375,453) 57,093,462
Distribution and Selling, General
andadministrative expenses
(3,958,396) (5,728,548) (3,396,730) (7,463,073) (2,646,176) 1,741,888 (21,451,035)
incl. Depreciation and amortisation (72,862) (910,976) (357,854) (348,591) (90,102) 85,607 (1,694,778)
Other operating income/(expenses), net 677,174 1,353,391 598,467 (726,058) 27,175,376 (26,744,173) 2,334,177
incl. Reimbursement of operating costs
(government grants)
576,559 516,862 546,424 495,720 – – 2,135,565
Incl. Non-recurring other operating
adjustment
105,924 489,812 (37,563) (1,368,049) 27,067,942 (25,805,013) 453,053
Reversal of provision for impairment
ofloans issued
– – – – 4,574,481 – 4,574,481
Operating profit 6,229,203 1,137,482 22,918,925 8,191,947 29,451,266 (25,377,738) 42,551,085
Adjustments:
Depreciation and amortization included
in Operating Profit
2,839,024 4,876,484 2,904,926 3,225,825 99,288 – 13,945,547
Non-recurring other operating
adjustment
(105,924) (489,812) 37,563 1,368,049 (27,067,942) 25,805,013 (453,053)
Net (loss)/ gain on revaluation of biological
assets and agricultural produce
– 370,486 (2,609,949) – – (1,169,846) (3,409,309)
Reversal of provision for impairment
ofloans issued
– – – – (4,574,481) – (4,574,481)
Adjusted EBITDA
1
8,962,303 5,894,640 23,251,465 12,785,821 (2,091,869) (742,571) 48,059,789
ADJUSTED EBITDA INFORMATION BY SEGMENT
as of 31 December 2
1.
Not an IFRS
measure.
117
Consolidated financial results / FINANCIAL RESULTS REVIEW
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

ADJUSTED EBITDA INFORMATION BY SEGMENT
as of 31 December 2020
1.
Not an IFRS
measure.
2020 Sugar Meat Agriculture Oil and Fat Other Eliminations Total
Sales 28,112,519 32,434,214 34,347,506 79,726,251 631,108 (16,280,563) 158,971,035
Net (loss)/ gain on revaluation of biologi-
cal assets and agricultural produce
– (681,302) 3,582,520 – – 2,989,229 5,890,447
Cost of sales (21,238,160) (27,375,635) (19,059,850) (64,547,430) (477,625) 11,566,042 (121,132,658)
incl. Depreciation (2,605,853) (3,716,132) (2,861,216) (542,826) (10,639) (75,387) (9,812,053)
Net gain from trading derivatives 10,552 – – – – – 10,552
Gross profit 6,884,911 4,377,277 18,870,176 15,178,821 153,483 (1,725,292) 43,739,376
Distribution and Selling, General
and administrative expenses
(3,399,788) (2,713,324) (3,732,770) (6,730,675) (1,704,354) 1,142,621 (17,138,290)
incl. Depreciation and amortisation (83,738) (218,146) (386,864) (184,327) (184,305) 75,387 (981,993)
Other operating income/(expenses), net 602,466 653,934 459,868 (533,103) 15,582,175 (14,472,323) 2,293,017
incl. Reimbursement of operating costs
(government grants)
179,564 104,836 299,020 347,210 – – 930,630
incl. Non-recurring other operating
adjustment)
425,102 459,983 71,372 (732,371) 15,526,199 (13,936,656) 1,813,629
Provision for impairment of loans issued – – – – (5,070,598) – (5,070,598)
Operating profit 4,087,589 2,317,887 15,597,274 7,915,043 8,960,706 (15,054,994) 23,823,505
Adjustments:
Depreciation and amortisation included
in Operating Profit
2,689,591 3,934,278 3,248,080 727,153 194,944 – 10,794,046
Non-recurring other operating adjust-
ment
(425,102) (459,983) (71,372) 732,371 (15,526,199) 13,936,656 (1,813,629)
Net (loss)/ gain on revaluation of biologi-
cal assets and agricultural produce
– 681,302 (3,582,520) – – (2,989,229) (5,890,447)
Provision for impairment of loans issued – – – – 5,070,598 – 5,070,598
Adjusted EBITDA
1
6,352,078 6,473,484 15,191,462 9,374,567 (1,299,951) (4,107,567) 31,984,073
118
Consolidated financial results / FINANCIAL RESULTS REVIEW
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

SHORT-TERM BORROWINGS
31.12.2021 31.12.2020
Bank loans 90,806,471 32,762,452
Loans received from third parties 16,600 16,600
Interest accrued on borrowings from third parties 246 615
Current portion of long-term borrowings 17,925,523 18,973,808
Total 108,748,840 51,753,475
All short-term borrowings are at fixed interest rate. The above borrowings are denominated
in the following currencies:
Interest rate 31.12.2021 Interest rate 31.12.2020
Russian Roubles 1.0–11.14% 108,748,840 1.0–11.14% 51,753,475
Total 108,748,840 51,753,475
LONG-TERM BORROWINGS
31.12.2021 31.12.2020
Bank loans 81,900,548 82,149,528
Less current portion
of long-term borrowings from:
Bank loans (17,925,523) (18,973,808)
Total 63,975,025 63,175,720
Interest rate 31.12.2021 Interest rate 31.12.2020
Russian Roubles 1.0%-12.5% 63,975,025 1.0%-12.5% 63,175,720
Total 63,975,025 63,175,720
All long-term borrowings are at fixed interest rate. The above borrowings are denominated
in the following currencies:
119
Consolidated financial results / FINANCIAL RESULTS REVIEW
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

NET DEBT
31.12.2021 31.12.2020
Long-term borrowings 63,975,025 63,175,720
Short-term borrowings 108,748,840 51,753,475
Cash and cash equivalents (46,462,179) (11,866,798)
Bank deposits within long-term investments (14 071 101) (13,900,000)
Bank deposits within short-term investments (18,519,392) –
Long-term bonds held for collect (19,900,000) (19,900,000)
Long-term bonds held for trading – (165,129)
Short-term bonds held for collect (362,475) (197,523)
Net debt
1
73,408,718 68,899,745
including long-term Net debt 30,003,924 29,210,591
including short-term Net debt 43,404,794 39,689,154
Adjusted EBITDA 48,059,789 31,984,073
Net debt/ Adjusted EBITDA
1
1.53 2.15
1.
Not an IFRS
measure.
120
Consolidated financial results / FINANCIAL RESULTS REVIEW
CONSOLIDATED FINANCIAL RESULTS
RUSAGROGROUP.RU/EN

05
CORPORATE
GOVERNANCE
ANNUAL REPORT 2021
ABOUT RUSAGRO
01
STRATEGIC
REPORT
02
REVIEW OF RUSAGRO'S
BUSINESS RESULTS FOR 2021
03
CONSOLIDATED
FINANCIAL RESULTS
04
APPENDICES
06
122 Corporate governance system
131 Share capital and securities
133 Shareholder and investor relations
138 Risk management
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

Corporate
governance
system
Rusagro recognises the extent to which the quality of its corporate governance
system affects its investment appeal, the confidence of the investment commu-
nity and its business reputation, and aims to continuously improve and compre-
hensively develop its corporate governance system.
Increased requirements for the quality of corporate governance stem from the
Company's public status. The global depositary receipts (GDRs) issued for the
Company’s shares are listed on London and Moscow stock exchanges.
Rusagro is committed to upholding the Russian
and international standards and best practices
in corporate governance. Rusagro's major
shareholders and directors are convinced that an
effective corporate governance system ensures
the Company's successful development and is
key to more stable business, stronger investment
appeal and higher shareholder value.
The Company’s fundamental documents
on corporate governance are listed below.:
DOCUMENTS
Regulations
Regulation on the Board of Directors
Regulation on the Audit Committee
of the Company’s board of directors
Codes
Code of Business Conduct and Ethics
Code of Conduct for the Prevention of Insider
Trading
Articles of Association
The Articles of Association
of ROS AGRO PLC are available
onthe Company's website
122
Corporate governance /
CORPORATE GOVERNANCE SYSTEM
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

CODE OF BUSINESS CONDUCT
AND ETHICS
A new version of 2014 Code of Business Conduct and Ethics (hereinafter
– the Code) was approved in 2017. The Code encompasses as follows:
• basic rules, principles and values of the Company and its employees;
• standards of business and social conduct;
• ethical standards for internal and external corporate relations;
• principles of social commitment towards employees, shareholders, busi-
ness partners, the state and society.
The Code is modelled on generally accepted rules of corporate ethics and
business conduct, international laws and documents that define best
corporate governance practice. It is a valuable instrument for creating a
strong corporate culture and a well-defined system of corporate values that
determine and shape the Company’s reputation, its competitive perfor-
mance and effectiveness.
The Code applies to all Rusagro Group companies. Its provisions cover, and
apply to, members of the Board of Directors, senior executives, and all other
employees of the Company.
In addition to complying with the code, all employees must obey
international anti-corruption acts, such as:
• The UK Bribery Act;
• The US Foreign Corrupt Practices Act (FCPA);
• The Company’s anti-corruption regulations and other current anti-
bribery laws that are applicable to the Company and its employees.
THE COMPANY’S CODE OF CONDUCT
FOR THE PREVENTION OF INSIDER TRADING
As a public company, Rusagro has extensive
responsibilities on establishing and observing a special
procedure for the disclosure of information that can
materially affect the value of the Company’s securities.
In 2011, the Company adopted, and since then has in place,
a Code of Conduct for the Prevention of Insider Trading
(Rev. 2) that applies to all of its employees and members
of the Board of Directors.
The Company uses the relevant global best practices to
ensure that all securities market participants have equal
access to sensitive information in an effort to prevent
misuse of insider information – information that could
affect the value of the Company's securities.
Other than understanding and observing the Company's
Code of Conduct for the Prevention of Insider Trading, the
employees must adhere to international acts on the use
and disclosure of insider information, such as:
• Cyprus Market Abuse Law (2016);
• Market Abuse Regulation EU directive (596/2014);
• UK Financial Services and Markets Act (FSMA) (2000);
• Disclosure and Transparency Rules (DTR) of the UK
Financial Services Authority;
• UK Criminal Justice Act (1993) and other applicable
laws and/or the improvement notices of the regulatory
authorities.
On 12 November 2021, the Company's Board of
Directors resolved to amend the Code of Conduct
for the Prevention of Insider Trading by reducing the
time frames to start the Annual Blackout period for
Securities transactions from 60 to 30 calendar days.
The Code of Business Conduct and Ethics
is available on the Company's website
The Code of Conduct for the Prevention
of Insider is available
on the Company's website
The resolution to amend the Code of Con-
duct for the prevention of insider trading
is available on the Company's website
123
Corporate governance /
CORPORATE GOVERNANCE SYSTEM
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

STRUCTURE OF MANAGEMENT
AND CONTROL BODIES
As dictated by the Articles of Association, the Company's governing body
system consists of the following levels:
• Meeting of Shareholders;
• Board of Directors;
• Audit Committee of the Board of Directors;
• Managing Director.
GOVERNANCE AND CONTROL SYSTEM
OF THE COMPANY
The Meeting of Shareholders is the Company’s supreme man-
agement body. The Annual Meeting of Shareholders shall be
held once a year. Any meetings of shareholders other than the
Annual Meeting shall be deemed extraordinary. The venue of
the Meeting of Shareholders shall be 25 Aphrodite Street, 3rd
floor, office 300, 1 060 Nicosia, Cyprus. Should the necessity
arise to change the venue the Meeting of Shareholders, the
Company’s Board of Directors shall appoint the date and
venue of the Annual Meeting and extraordinary meetings.
The Meeting of Shareholders holds the following exclusive
authorities:
• to announce the payment of dividends on the Company’s
securities;
• to decide upon the issue of shares and other issuable
securities of the Company;
• to decide upon the acquisition of the shares previously
issued by the Company;
• to approve financial (accounting) statements of the
Company;
• to review the reports of the auditors and the Board of
Directors;
• to approve the Company’s Annual Report;
• to elect members to the Board of Directors;
• to elect an auditor for the Company and determine its
remuneration;
• to approve the purchase of the Company’s shares by the
members of the Board of Directors;
• to decide upon the winding-up of the Company.
MEETING OF SHAREHOLDERS
BOARD OF DIRECTORS
EXTERNAL INDEPENDENT
AUDITOR
SUBSIDIARIES
Appointment
Recommendations
Supervision Reporting
Auditor’s
report
Election
Audit Committee
Minutes of the Meetings of Shareholders
are available on the Company's website
MEETING OF SHAREHOLDERS
The Company held three Meetings of Shareholders in 2021:
on 16 April (Annual Meeting), 10 September and 26 November
(extraordinary meetings).
The Annual Meeting of of Shareholders in April 2021 approved
as follows:
• 2020 Audited Consolidated Financial Statements;
• 2020 Audited Separate Financial Statements;
• 2020 Independent Auditor’s Report;
• 2020 Directors’ report;
• 2020 Annual Report;
• dividend payout at the year-end 2020;
• other matters, including the re-election of members of the
Board of Directors and approval of their remuneration.
The extraordinary Meeting of Shareholders held in September
2021 approved the decision on the payment of 2021 interim
dividends.
The extraordinary Meeting of Shareholders held in Novem-
ber 2021 decided to change the Group's auditor from PwC to
KPMG starting from 2021.
124
Corporate governance /
CORPORATE GOVERNANCE SYSTEM
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

BOARD OF DIRECTORS
STRUCTURE OF MANAGEMENT
AND CONTROL BODIES
STRUCTURE OF THE BOARD OF DIRECTORS IN 2021
membership
2
1
2
Managing
Directors
Independent
Directors
Non-managing
Directors
The Board of Directors
ofROSAGROPLC is chaired
by the majority shareholder
ofthe Company, who is not
themanaging director. One
of the managing directors is
awoman.
Vadim
Moshkovich
Chairman of the Board of Directors of ROSAGROPLC
from May 2015 to 10 March 2022
Born in 1967;
In 1992 – graduated from Moscow State Institute
of Radio Engineering, Electronics and Automation
(currently known as Moscow Technological
University);
In agribusiness since 1995; originally headed Sugar
Impex Trading CJSC and Sugar Impex Trading
Company;
From 1999 to 2006 – CEO and co-owner of a
group of companies that were consolidated into
LLC Rusagro Group of Companies in 2003;
From 2006 to 2014 – a member of the Federation
Council of the Federal Assembly of the Russian
Federation: a representative of the Belgorod
Region and a member of the Committee on
Economic Policy;
From May 2015 to 10 March 2022 – Chairman of
the Board of ROS AGRO PLC;
Shareholding of 56.2% (expressed in GDRs) as of 31
December 2021.
Together with his family, he holds 56.2% of the
Company as at 31 December 2021.
Maxim
Basov
Chairman of the Board of Directors of ROS AGRO PLC
from 10 March 2022, Member of the Board of Directors of
ROS AGRO PLC from 2011, CEO of JSC Rusagro Group and
LLC Rusagro Group of Companies until 31 December 2021
Born in 1975; in 1996 – graduated from New
York University, majoring in Economics and
Finance, International Business, and Philosophy;
Senior management positions at OJSC Sev-
erstal, OJSC Kuzbassugol, OJSC Severstal
Resource, and Interpipe Research, Industries
and Investment Group;
From 2006 to 2009 – head of Metalloinvest;
From 2011 – member of the Board Directors,
ROS AGRO PLC;
From 2003 to 31 December 2021 – General
Director of JSC Rusagro Group;
From 2009 to 31 December 2021 – CEO of LLC
Rusagro Group of Companies;
Shareholding of 7.6% (expressed in GDRs)
as of 31 December 2021.
Composition of the Board of Directors
The Annual Meeting of Shareholders held on 16 April 2021 elected the following members
to sit on the Board of Directors.
The Board of Directors is the Company’s collective governance body responsible for
overall management of the Company’s business, except for issues within the exclusive
authority of the Meeting of Shareholders. The Board of Directors is collectively responsible
for the Company’s performance.
The Board sets out strategic objectives, mobilises financial and human resources needed
to achieve them, and measures the performance of the Company’s management team. The
Board of Directors also determines the values and standards of corporate governance and
makes sure that the Company meets its obligations to shareholders.
As specified by the Company’s Articles of Association, the Board of Directors shall have at
least two and no more than five directors, with minimum two of them being non-executive
directors. The Company has no formalised rules on cultural and gender diversity on the
Board of Directors. Including representatives of different genders and nationalities on the
Board of Directors helps Rusagro in effective decision-making.
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Corporate governance /
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STRUCTURE OF MANAGEMENT
AND CONTROL BODIES
Televantides
Tassos
Member of the Board of Directors of ROS
AGRO PLC, Independent Director from 2011
to 1 April 2022
Born in 1948;
From 1994 to 1998 – a member of the ICPAC
Board of Directors;
From 2002 to 2008 – Honorary Treasurer
of the Limassol Chamber of Commerce and
Industry;
From 2008 – chairman of the Management
Board at CyproDirectLimited;
From 2009 – chairman of the Board of
Directors at Limassol Bishopric;
For more than 20 years – a partner at
Pricewaterhouse Coopers Cyprus; Held
directorships in a Canadian pharmaceuticals
group, Norwegian construction and drilling
company, Gazprombank Financial Services
(UK) Limited, and Olivant Investments;
A licensed auditor of the highest category;
From November 2011 – a member of the
Board of Director and chairman of the Audit
Committee at ROS AGRO PLC;
Shareholding of 0.01% (expressed in GDRs)
as of 31 December 2021.
Richard Andrew
Smyth
Member of the Board of Directors of ROS
AGRO PLC from 2011 to 10 March 2022,
Independent Director
Born in 1962;
In 1984 – graduated from Oxford
University;
From 2003 to 2009 – General Manager
at LLC Mars;
From January 2009 – Regional President
of MARS Central Europe and CIS;
From February 2011 to May 2015 –
Chairman of the Board of Directors at
ROS AGRO PLC;
Shareholding of 0.02% (expressed
inGDRs) as of 31 December 2021.
Anna
Khomenko
Member of the Board, Managing Director and Compliance Officer of ROS AGRO PLC
Born in 1977;
Studied international law at Institute of International Relations of Taras Shevchenko National
University in Kyiv, Ukraine; continued her studies at Keele University in the UK and received a double
BA degree in Law and International Politics in 1999; in 2000 – completed a Legal Practice Course at
University of Law, Chester, UK;
Until 2007 – Head of the Corporate Department of Excel Service (Cyprus), a service provider;
From 2007 to 2009 – CEO of IFG Trust (Cyprus) Limited specialising in financial and corporate services
for businesses and individuals;
In 2009 – founded and headed Fiduciana Trust (Cyprus) Limited, a corporate services company;
Has long track record in tax, compliance, corporate trust and fiduciary services. With over 20 years in
the industry, she is a well-recognised expert and advises on all aspects of corporate law and excels
at establishment and supporting of Cyprus and international tax planning structures, management
and corporate trust services for all types of cross-border corporate structures; currently – Managing
Partner at Fiduciana Trust (Cyprus) Limited;
From 2011 – a member of the Board of Directors at ROS AGRO PLC;
No shareholding.
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CORPORATE GOVERNANCE
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The Board of Directors held four meetings in 2021 – on 14 March, 12 May,
13 August and 12 November. All the above meetings were chaired by Anna
Khomenko. The quorum present met the requirements of the Company’s
Articles of Association.
The Board of Directors reviewed and approved the following issues in
March 2021:
• 4Q and 12M 2020 financial and operational results;
• Press-release on 12M 2020 financial results;
• Report of the Audit Committee meeting held on 4 March 2021, which
recommended the audited consolidated financial statements for
approval as at 31 December 2020;
• 2020 Annual Report;
• Recommendations on the amount of dividends as envisaged in the
Company's Dividend Policy;
• Approval of the Auditor for 2021 and its remuneration;
• Remuneration for the Company’s senior management and scheduled
changes in the management team, stock option plan;
• 2021 business plan;
• CAPEX forecast for 2021;
• Major technology projects;
• Presentation on M&A opportunities for Rusagro in 2021;
• Amendments to the Code of Conduct for the Prevention of Insider
Trading;
• Selected issues related to the activities of the Cyprus office;
• Setting of a date for the Annual General Meeting of Shareholders.
The Board of Directors reviewed and approved the following issues
inMay 2021:
• 1Q 2021 financial and operational results;
• Press-release on 1Q 2021 financial results;
• CAPEX forecast for 2021;
• Report of the Audit Committee meeting held on 4 May 2021;
• Presentation on M&A opportunities for Rusagro in 2021;
• Strategic overview of potential opportunities.
STRUCTURE OF MANAGEMENT
AND CONTROL BODIES
Meetings of the Board of Directors
AUDIT COMMITTEE UNDER
THE BOARD OF DIRECTORS
The Audit Committee was established to enhance
the performance efficiency of the Board of
Directors. The Audit Committee is governed by
theCharter of the Audit Committee adopted by
the Board of Directors as required by the laws
ofthe Republic of Cyprus, the Company’s Articles
of Association, the Regulation on the Board ofDi-
rectors, and decisions of the Board of Directors.
The main responsibilities of the Audit Committee
are as follows:
• to assist the Board in making decisions related
to reporting and auditing;
• to raise the effectiveness of Board's control
over the financial and economic activities of
theCompany by preliminary reviewing and
preparing recommendations for the Board
onmatters within the Board’s competence;
• to introduce effective controls over the financial
and economic activities of the Company and
ensure the Board’s participation in their en-
forcement.
The members of the Audit Committee are elected
by the Board of Directors of the Company.
TheAudit Committee may only be chaired by anin-
dependent director.
The Audit Committee had the following mem-
bership in 2021:
• Tassos Televantides (Chairman);
• Richard Andrew Smyth;
• Anna Khomenko.
Four in-person meetings of the Audit Commit-
tee of the Board of Directors were held in 2021:
on4March, 4 May, 3 August and 2 November.
Minutes of the Board of Directors
are available on the Company's website
The Board of Directors reviewed and approved the following issues
inAugust 2021::
• 2Q 2021 financial and operational results;
• Press-release on 2Q 2021 financial results;
• Updated Capex information;
• Convening of an extraordinary General Meeting of Shareholders;
• Recommendations for the dividend payout for 1H 2020 as envisaged in
the Company’s Dividend Policy;
• Report of the Audit Committee meeting held on 3 August 2021;
• Recommendation to change the independent auditor to provide a fresh
perspective;
• Capacity to develop projects in Japan;
• Announcement of a change in the Group's management team in 2021;
• Strategic overview of potential opportunities.
The Board of Directors reviewed and approved the following issues
inNovember 2021:
• 3Q and 9M 2021 financial and operational results;
• Estimate of FY 2021 financial results;
• Year-end 2021 press release;
• Report of the Audit Committee meeting held on 2 November 2020;
• Change of CEO, Maxim Basov;
• Presentation of the CAPEX report;
• Status update of M&A projects and related opportunities;
• Capacity to develop projects in China;
• Amendments to the Code of Conduct for the Prevention of Insider
Trading;
• Change in the date of the General Meeting of Shareholders;
• Strategic overview of potential opportunities.
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Corporate governance /
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MANAGEMENT
AND THEIR REMUNERATION
CORPORATE GOVERNMENT
Maxim
Basov
Chairman of the Board of Directors
of ROS AGRO PLC from 10 March 2022, Member of theBoard
of Directors of ROS AGRO PLC from 2011, CEO of JSC Rusagro
Group and LLC Rusagro Group of Companies
until 31 December 2021
For Mr. Basov’s curriculum vitae, please see the Board
of Directors section.
Boris
Chernicher
Chief Financial Officer,
LLC Rusagro Group of Companies
Born in 1986; Graduated with honours from
Moscow State University of Economics, Statistics
and Informatics, majoring in Economics and
Mathematics; From 2015 – a member of the
Association of Chartered Certified Accountants;
Prior to joining Rusagro – over 10-year experience
in economics and finance; from 2012 – head of the
reporting and budgeting departments at Home
Credit & Finance Bank and Beeline;
From 2019 – Head of Controlling, Investment and
Reporting at Rusagro, and from July to December
2020 – acting CFO of Rusagro's Oil and Fats
Business;
From January 2021 – CFO of LLC Rusagro Group
of Companies.
Sergey
Koltunov
Director of Legal and Corporate Affairs,
LLC Rusagro Group of Companies
Born in 1980; In 2003 – graduated from Lobachevsky
State University of Nizhny Novgorod, Law Faculty;
In 2004 – received the second higher education,
majoring in Economics and Management; In 2011 –
completed a management training course at Russian
Presidential Academy of National Economy and
Public Service;
Before joining Rusagro – head of legal departments
and senior management positions at Russky
Alkohol Group of companies and Danone Group of
companies;
From 2013 – Legal and Corporate Affairs Director at
LLC Rusagro Group of Companies;
2013–2020 – repeatedly featured in the "Top 1,000
Russian Managers" ranking conducted by the
Managers Association and Kommersant Publishing
House, and The Legal 500 GC Powerlist: Russia.
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MANAGEMENT
AND THEIR REMUNERATION
In 2021, Rusagro's management was rec-
ognised in the Top 1,000 Russian Managers
ranking by the Association of Managers of
Russia and Kommersant Publishing House
in the following agriculture categories:
• Maxim Basov – first place in the
CEO category
• Olga Fedorova – first place in the
HR Director category
• Svetlana Kuznetsova – first place
in the Investor Relations Direc-
tors category
• Boris Chernicher – fourth place in
the CFO category
РЕЙТИНГ РОССИЙСКИХ МЕНЕДЖЕРОВ
ANNUAL RANKING
OF THE ASSOCIATION
OF MANAGERS
Svetlana
Kuznetsova
Chief Investor Relations & ESG Officer,
LLC Rusagro Group of Companies
Born in 1989; in 2011 – graduated from National
Research University Higher School of Economics,
majoring in Global Economics and International
Business;
From 2012 to 2015 – head of Funds & Investment
Services Department of Europe Finance Ltd;
In 2016 – senior analyst at Skolkovo Institute
of Science and Technology under National
Technology Initiative to develop the FoodNet
roadmap for innovations in the agro-industry;
In June 2016 – Marketing Manager of LLC Rusagro-
Ovoschi to develop an investment project for
launching a vegetable business;
From October 2016 to January 2021 – Head of
Investments at LLC Rusagro Group of Companies
and in charge of M&A transactions and investor
relations;
From 1 February 2021 – a Chief Investor Relations &
ESG Officer at LLC Rusagro Group of Companies.
Dmitry
Brekhov
Head of Internal Audit,
LLC Rusagro Group of Companies
Born in 1971; in 1997 – graduated from
the Faculty of Economics of Lomonosov
Moscow State University, majoring in
Accounting and Audit;
Before joining the Company – head of
the Internal Audit function at AGRICO
Agricultural Investment Company and
Antanta Pioglobal Investment Group;
Holds an ACCA DipIFR diploma and a
general audit certificate from the Ministry
of Finance of the Russian Federation;
From October 2010 – Head of Internal
Audit at LLC Rusagro Group of
Companies.
Olga
Fedorova
HR Director, LLC Rusagro Group of Companies
Born in 1979; In 2000 – graduated from
Technological Department of State
University of Non-Ferrous Metals and Gold,
majoring in Metallurgy; In 2006 – graduated
from Russian University of Economics
named after G.V. Plekhanov, majoring in
Economics and Management;
Before joining Rusagro – HR management
at Russian Aluminium; From 2006 to
2018 – senior HR management positions
at Rusagro's Sugar Business, particularly –
Head of Human Resources;
From January 2019 – HR Director at LLC
Rusagro Group of Companies;
A holder of the international certificate
in Global Remuneration (GRP) from
WorldatWork (USA), Chartered Institute of
Personnel Development (UK) professional
certificate in HR and ICF international
coaching certificate.
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MANAGEMENT
AND THEIR REMUNERATION
DIVISIONS MANAGEMENT
Remuneration of key
management personnel
In 2021, the list of key
management personnel of
Rusagro included 12 people
(12 people in 2020): CEO, CFO
and Legal Director of LLC
Rusagro Group of Companies,
general directors of five
Businesses and four members
of the Board of Directors. In
2021, their total remuneration,
which covers salaries and
bonuses, increased by 33%
(RUB 397 mn) to RUB1,609 mn,
including RUB235 mn (+124%,
or RUB130 mn) payable to the
State Pension Fund. Members
of the Board of Directors
received RUB 1,188 mn (+48%,
or RUB 384 mn) of the total
remuneration. Board members
also received dividends of
RUB1,478 mn (+286% or
RUB1,095 mn). The main
reason for better remuneration
was an increase in its variable
component generated by the
Company's higher profits in
2021.
Dmitry
Laburtsev
Head of the Agriculture Business
Born in 1977; Holds a law degree
from Volgograd Public Service
Academy and a master's degree
in Agronomy from Saratov State
Agrarian University;
From 2010 to 2017, prior to joining
Rusagro – head of LLC Volgograd
Agro-Industrial Company;
From 2017 to 2019 – head
oftheagricultural business at
Solnechnye Produkty Holding;
From 2019 to 2020 – General
Director of LLC Agrotechnologies;
From January to September
2021 – Chief Operating Officer
ofRusagro's Agriculture Business;
Since September 2021 – Head
ofRusagro's Agriculture Business.
Vladimir
Alexandrov
Head of the Oil and Fats Business
Born in 1979; Graduated from
Financial Academy under the
Government of the Russian
Federation, majoring in Finance
and Credit; In 2006 – received
MBA from Harvard Business
School;
Before joining Rusagro – 19 years
in the international consulting
company – McKinsey & Company,
where he worked his way up from a
business analyst to the partner; run
the CIS mining and chemical client
practice, as well as major capital
projects;
From September 2020 – Head of
the Oil and Fats Business.
Evgeny
Sluchevsky
Head of the Meat Business
Born in 1987; In 2009 – graduated
from Tyumen Industrial University,
majoring in Information Technology
and Management Systems;
in 2011 – received a Master’s
degree in System Analysis from
Moscow Institute of Physics and
Technology;
From 2010 to 2011 – a
management consultant at KPMG;
From 2011 to 2016 – a consultant
at McKinsey & Company – an
international consulting company,
where he gained diverse functional
and industry-specific experience;
From 2016 to 2019 – head of one
of the leading companies in the
sausage market (the top 10 of
thenational ranking);
From October 2019 – Head of the
Meat Business.
Pavel
Permyakov
Head of the Sugar Business
Born in 1986; in 2007 – graduated
from Moscow State University of
International Relations (MGIMO),
majoring in Economics;
From 2010 to 2015, before joining
Rusagro – project manager at
McKinsey&Co, specialising in the
telecommunications and banking
sectors; From 2015 – Commercial
Director at Utair – Passenger
Airlines, and from 2017 to January
2021 – President of the same
company; From 2018 to December
2020 – member of the Board of
PJSC UTair Aviation;
From July 2021 – Head of the
Sugar Business.
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Corporate governance /
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CORPORATE GOVERNANCE
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SHARE CAPITAL
STRUCTURE
At the end of 2021, the Company’s authorised capital was divided into 60,000,000
declared ordinary shares and 27,333,333 issued ordinary shares with a par value of EUR
0.01 each, where 10,965,500 shares (8,333,333 in 2020) are listed on the London and
Moscow stock exchanges in the form of 54,827,500 GDRs (five receipts for one share).
According to the year-end results, the main owner of the Company is Vadim Moshkovich
(through Granada Capital CY Limited) with a 56.2% share (in 2020, 70.7%) in the
Company's share capital including treasury shares – he holds 15,367,829 shares. The
Company's largest minority shareholder with 10.0% is Maxim Vorobiev (directly or
through affiliates), who holds 2,727,814 shares in the form of receipts. Maxim Basov
(via Rigpa Limited), CEO of Rusagro Group LLC and member of the Board of Directors
of ROS AGRO PLC, owns 7.6% (in 2020 – 7.2%) and holds 2,078,562 shares (including
1,000,000 shares acquired before the IPO and 1,078,562 shares as receipts acquired
in 2011–2021). Other members of the Board of Directors own 8,225 shares in the form
of receipts. There is a free float of 24.6% of the issued ordinary shares in the form of
receipts. Treasury securities account for 1.6%, or 427,063 shares in the form of receipts
(2,135,313 GDRs).
Share capital
and securities
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Corporate governance /
SHARE CAPITAL AND SECURITIES
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

SHARE CAPITAL
STRUCTURE
Rusagro is not aware of any other share-
holdings in the form of receipts in excess
offive per cent other than those already
disclosed. In March 2022, the stake in-
directly held by Vadim Moshkovich was
reduced to 49.0% by the sale of 7.2%
ofROSAGROPLC to Yury Zhuravlev.
CHANGES IN THE SHARE CAPITAL STRUCTURE FOLLOWING
SPO OF ROS AGRO PLC GDRS BY THE COMPANY'S MAJORITY
SHAREHOLDER
On 30 September 2021, Vadim Moshkovich, majority shareholder and Chairman of the Board
of Directors of ROS AGRO PLC, sold 19,800,000 GDRs worth USD 275 mn on the secondary
security market. The transaction resulted in the following changes in the share capital struc-
ture:
• Vadim Moshkovich's stake decreased from 70.8% to 57.1% excluding treasury shares
(from 70.7% to 56.2% including treasury shares);
• Maxim Basov, a member of the Board of Directors of ROS AGRO PLC and CEO
ofLLCRusagro Group of Companies, acquired 250,000 GDRs. His stake increased
from 7.5% to 7.7% excluding treasury shares (from 7.4% to 7.6% including treasury
shares);
• Maxim Vorobiev, a minority shareholder in the Company, acquired 8,260,543 GDRs.
His stake increased from 4.2% to 10.1% excluding treasury shares (from 4.2% to 10.0%
including treasury shares);
• The free float grew from 20.6% to 25.0% excluding treasury shares (from 20.3%
to24.6% including treasury shares
.
1.
Directly and through affiliates.
2.
There are two tickers for ROS AGRO PLC
securities in the Bloomberg terminal:
AGROLIEquity – for listed shares (8,333,333
shares with 41,666,665 GDRs) and 3191226Z CY
Equity – for not-listed shares (19,000,000 shares).
Rusagro has been a public market company since 2011. GDRs for ROS AGRO PLC ordinary shares are
listed on the London and Moscow stock exchanges. Rusagro's GDRs are included in Level 1 quotation
list of the Moscow Exchange. The depository bank is the Bank of New York Mellon Corporation (BNY
MELLON). Five GDRs are equivalent to one ordinary share of Rusagro.
DATA
ON SECURITIES
56.2
10.0
7.6
Vadim Moshkovich and his family
(Granada Capital CY Limited)
Independent members
of the Board of Directors
Company
(ROS AGRO PLC)
1.6
Maxim Basov
(Rigpa Limited)
Maxim
Vorobiev
1
Free float
0.03
24.6
SHARE CAPITAL STRUCTURE
AT THE END OF 2021,
%
RECOMMENDATIONS OF ANALYSTS
AS AT 31 DECEMBER 2021
6
1
Hold
Buy
Security tickers
• ISIN US7496552057
• LSE – AGRO;
• MOEX – AGRO
• Reuters – AGRORq.L
• Bloomberg – AGRO LI Equity, 3191226Z
CY Equity
2
Index
In 2021, the Company's receipts were included
in three indice:
• Moscow Exchange Index
consumer sector
• Moscow Exchange Index of mid-and
small-capitalisation
• MSCI Russia Small Index
Seven investment banks provided analytical coverage for the Company in 2021: VTB Capital,
Renaissance Capital, SOVA Capital, Sberbank CIB, J.P. Morgan, Gazprombank, and Alfa Bank.
According to Bloomberg data available at the end of the year, six banks recommended to "buy"
and one – to "hold".
132
Corporate governance /
SHARE CAPITAL AND SECURITIES
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

GENERAL PRINCIPLES
Rusagro is committed to serving the interests of its shareholders, protecting
their rights and maintaining a relationship of trust with them. The Company is
engaged in a direct dialogue with the shareholders and investors and guided by
the current legislation and best global practices. The main standards of external
corporate conduct and ethics to be applied in the relations with shareholders and
investors are outlined in the Company's Code of Business Conduct and Ethics.
The Company seeks to minimise the actual risks to the investors, and therefore
appropriately discloses the information on its activities and refrains from actions
that could mislead the investors. The Company makes every effort to increase
shareholder value, prevent inter-company conflicts and ensure a high quality of
corporate governance.
Rusagro equally respects the rights of all shareholders, regardless of the number
of shares or GDRs they hold. The Company guarantees all of its shareholders
the security of all rights established by applicable law and arising from the
Company's obligations in connection with the trading of its securities on stock
exchanges. In doing so, the Company constantly works towards making the
exercise of shareholders' rights easier, more accessible and effective, and yet less
costly.
INFORMATION
FOR SHAREHOLDERS
AND INVESTORS
Shareholder
and investor
relations
133
Corporate governance /
SHAREHOLDER AND INVESTOR RELATIONS
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

INFORMATION POLICY
Efficient and effective operations lie at the core of Rusagro's investment
appeal; however positive investment decisions are also heavily weighed by
performance and corporate governance matters, especially how open and
transparent the Company’s business is..
In its desire to ensure a level of transparency in line with international best
practice, the Company communicates to the investment community in a
timely manner all information that could have a material effect on the value
of the Company's securities:
• Annual and quarterly reporting on the financial and operating results;
• Information on all material events pertaining to the Company's business;
• Specialised information and analytical materials for investors.
In doing so, Rusagro ensures that all members of the investment communi-
ty have equal access to information about the Company and takes care to
foreclose exclusive access to this information by certain groups of investors.
To this end, the Company aims to ensure timely publication of information
in Russian and English.
Any information that may have an impact on the Company's share price
is posted on the official website of LLC Rusagro Group of Companies,
RNS LSE and Interfax portals in accordance with established information
disclosure requirements. The 2021 Annual Report was also the first to be
disclosed through the National Storage Mechanism FCA system.
INFORMATION FOR SHAREHOLDERS
AND INVESTORS
Disclosure of the 2021 Annual Report
in digital format
Rusagro's News and
Publications are available
onthe Company's website
inthe Investor Relations section
For the disclosure of Rusagro's 2021 Annual Report in the National
Storage Mechanism FCA, the Company released its reports in the
new iXBRL (iXBRL – Extensible Business Reporting Language)
format for the first time. This is an XHTML-based digital financial
reporting format, enriched with additional data, which allows
specialised information systems to automatically process
corporate financial statements and data.
From the 2021 reporting period on, this format is mandatory for
all issuers of securities admitted to public trading on European
regulated markets and obliged to submit annual financial
statements. This is a requirement of the European Single Electronic
Format (ESEF) developed by the European Securities and Markets
Authority (ESMA) to implement the European Transparency
Directive.
The publication of digital reporting should increase transparency
and make the Company more accessible, analysable and
comparable for a wide range of stakeholders, including regulators,
investors and analysts. It will facilitate the rapid and reliable
dissemination of reporting information and minimisation of errors.
Prompt feedback
Prompt feedback
Rusagro is committed to constantly
improve the quality of our
engagement with the investment
community and open for comments
and suggestions on development.
We have highest regard for our
shareholders and investors and will
continue our efforts to better meet
their need for reliable, complete
and timely information. Rusagro's
Shareholder and Investor Relations
Department can be contacted at
ir@rusagrogroup.ru
134
Corporate governance /
SHAREHOLDER AND INVESTOR RELATIONS
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

Activities
To promote a unified interpretation of results
and events, Rusagro holds regular meetings
of the Company's management and key
managers with representatives of the media
and the investment community, as well as
maintains constant communication via the
internet and telecommunications networks.
As soon as the quarterly and annual financial
results are available, the Company makes
video calls to share the results and provide
further explanations that are required to
assess the financial standing of the Group.
The speeches are given in Russian with
simultaneous translation into English, and the
recordings of the presentations are posted
on the Company's website in the Investor
Relations section in both languages.
Rusagro is an active participant of shareholder
and investor conferences held by major
Russian and international investment banks.
In 2021, the Company participated in five
major conferences and hosted a number
of one-to-one meetings with Russian and
international investors, supported by VTB
Capital and J.P. Morgan. For better access
of retail investors to quality and reliable
information about the Company, Rusagro also
joined three events organised specifically for
this group of investors.
INFORMATION FOR SHAREHOLDERS
AND INVESTORS
SBER CIB – Russia: The Inside Track
THE BIGGEST INVESTOR
CONFERENCES OF 2021
CAPITAL
MARKETS
DAY
held by Rusagro on 14 September 2021
via videoconference in Russian with
simultaneous interpretation into English
Rusagro's publication dates
and corporate events can
befollowed on the corporate
website in the Calendar section
Renaissance Capital – 25th Annual
Russia Investor Conference
Alfa-Bank Investors Conference
Sova Capital Small-Mid Cap Conference
Moscow Exchange International
Investment Forum
2021 EVENTS
FOR RETAIL INVESTORS
Gazprombank Telegram Broadcast
VTB Investor School, March
VTB Investor School, September
135
Corporate governance /
SHAREHOLDER AND INVESTOR RELATIONS
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

The shareholders' right to participate in Rusagro's profits is exercised
through the dividend policy. In August 2013, the Meeting of Shareholders
approved the dividend policy providing for annual payments of at least
25% of the Company's net profit. In 2021, a decision was taken to raise
the minimum payment threshold to 50% of the Company's net profit.
Payment is made twice a year based on the financial results for the first
half and second half of the year. Securities owned by the Company do not
participate in the payment of dividends.
Rusagro's Annual Meeting of Shareholders on 17 April 2021 approved a
record dividend for 2020 set at USD 1.23 per GDR (USD 6.15 per share). The
total dividend payout amounted to USD 165.5 mn. This is equivalent to
RUB12.6 bn, or 50% of the Company's net profit for 2020.
Dividends for the first half of 2021 worth RUB 8.75 bn (USD 119.7 mn) were
paid on 14 September 2021. No securities held by the Company, which
amounted to 2,135,313 GDRs, were included in the dividend payment. As a
result, payments per GDR stood at USD 0.89 (USD 4.45 per share).
DIVIDEND
POLICY
DIVIDEND PAYOUT DATE
1
Payment
year
As of the end of Payment date
2017
2H 2016 19.04.2017
1H 2017 18.09.2017
2018
2H 2017 18.04.2018
1H 2018 18.09.2018
2019
2H 2018 16.05.2019
1H 2019 15.10.2019
2020
2H 2019 27.04.2020
1H 2020 21.09.2020
2021
2H 2020 20.04.2021
1H 2021 14.09.2021
1.
Dividend payments in rouble terms correspond to the amounts actually paid by the Company and may differ from the amounts declared in
dividend declarations published by the Company due to changes in the currency exchange rate on the date of payment.
Conditions affecting the amount of the share
of net profit payable to shareholders:
availability and amount of net profit
under IFRS;
achievement of the target level of
equity capital adequacy by 2021 and
its maintenance on a mid-term horizon;
capital requirements for the
implementation of the Development
Strategy and targeted market M&A
transactions;
economic conditions and other internal
and external changes that have or
may have an adverse effect on the
Company's operations;
striking of a balance between the
Company and its shareholders with
a view to enhance the investment
attractiveness and uphold rights of the
Company's shareholders.
For the first time in Rusagro's history, minimum dividend payout
isset at no less than 50% of Rusagro Group's IFRS net profit
NEW DIVIDEND POLICY
136
Corporate governance /
SHAREHOLDER AND INVESTOR RELATIONS
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

DIVIDEND
POLICY
PAYOUTS PER SHARE
USD
‘17 ‘18 ‘19
‘20 ‘21
1.15
0.60
0.95 0.95
4.45
1.45
1.95
1.60
5.20
2.60
2.55 2.55
6.15
1-st payment 2-nd payment
PAYOUTS PER GDR
RUB
‘17 ‘18 ‘19
‘20 ‘21
13.23
8.18
12.23
14.25
65.04
17.73 25.29
23.91
79.29
30.096
33.48
36.14
93.54
1-st payment 2-nd payment
PAYOUTS PER GDR
USD
‘17 ‘18 ‘19
‘20 ‘21
0.23
0.12
0.19 0.19
0.89
0.29
0.39
0.32
1.04
0.52 0.51
0.51
1.23
1-st payment 2-nd payment
‘17 ‘18 ‘19
‘20 ‘21
66.16
40.91
61.15
71.26
325.2
88.66
126.47
119.55
396.45
154.82
167.38
180.69
467.71
1-st payment 2-nd payment
PAYOUTS PER SHARE
RUB
RUSAGRO’S DIVIDEND PAYOUT FOR THE YEAR
1
TOTAL PAYMENTS
RUB bn
‘17 ‘18 ‘19
‘20 ‘21
1-st payment 2-nd payment
1.8 1.1 1.6
1.9
8.8
2.4
3.4
3.2
10.7
4.2
4.5
4.9
12.6
71%
35%
47%
50% 50%
Dividend payout ratio
2
, % of net profit
‘17 ‘18 ‘19
‘20
‘21
30.9
16.1
25.6 25.6
119.7
39.0
52.5
43.1
139.9
69.9
68.6
68.6
165.5
1-st payment 2-nd payment
1.
Dividend payments in rouble terms correspond to
the amounts actually paid by the Company and
may differ from the amounts declared in dividend
declarations published by the Company due to
changes in the currency exchange rate on the
date of payment.
2.
Calculated from the dollar exchange rate on the
date of the Board of Directors' meeting, which
proposed the dividend payout for the stated
period.
TOTAL PAYMENTS
USD bn
5
times
HIGHER DIVIDEND PAYMENTS
FOR 1H 2021 COMPARED TO PAYMENTS
FOR 1H 2020
137
Corporate governance /
SHAREHOLDER AND INVESTOR RELATIONS
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

Risk
management
Rusagro devotes significant resources to identifying,
assessing and recognising risks in its business decision-
making process. The Company is committed to observing the
national and international standards in risk management: its
going concern is to monitor the risks and to update its risk
management toolkit in order to maximise the Company’s
value and reduce the risk impact severity. The Company
identifies seven main types of risks having the greatest
impact on the business performance. The 2020–2021
assessment also covered the impact of the COVID-19
pandemic on the Company's performance.
At the time of reporting, risks were being reassessed
and revised on the back of the dramatically changed
macroeconomic situation in March 2022.
138
Corporate governance / RISK MANAGEMENT
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

Description Management
Political risks
Changes in state policy relating to price control, as well as export-import and tax regulation
Changes in the state policy as pertaining to control over prices for
products sold by Rusagro, as well as to export-import and tax regu-
lation, could exert negative influence on the Company's performance.
Thus, touching the price ceiling and introducing tariffs and quotas
for the export of agro-food products impedes the ability to maximise
revenue, and higher taxes translate into lower net profit.
• The Company monitors any changes in the state policy and re-
sponds accordingly, promptly re-tailoring Rusagro's strategy.
• The Company takes a proactive position and negotiates with
government officials, whenever possible, the introduction of restric-
tive measures and their impact on business
Market risks
Reduction in product prices
The Company's financial performance is linked to price levels for sugar,
pork, agricultural crops, vegetable oils and products thereof. The price
level depends on a number of factors which the Company cannot
fully control. The key reasons for possible price reductions could be as
follows:
• Higher competitive supply or competitive struggle;
• Erosion in household purchasing power;
• Slumping global prices.
• Diversification of the Company’s product portfolio by extending the
product range and developing retail brands;
• Development of the sales channels, contracting with major
industrial partners and retail chains;
• Development of export sales and expansion into new markets;
• Maintenance of ample stocks of finished products intended for sale
during seasonal price hikes;
• Continuous monitoring of the market situation to obtain a true and
fair view of the prevailing trends and to ensure a sound basis for
forecasting the market developments
Operational risks
Reduced revenues as a result of lower yields due to climate change and weather anomalies
Extreme weather such as drought, frost, excessive moisture, strong
winds, hail, damping-off may lead to reduced yield, which affects the
revenue of the Agriculture, Meat, Sugar, and Oil and Fats Businesses.
• An integrated approach to weather forecasting based on weather
station data.
• Monitoring of the crops on a regular basis;
• Digitalisation of strategic planning and operational processes in the
Agriculture Business;
• Automation of the optimal scheduling of sugar beet digging, piling
and delivery, as well as harvesting and exporting of grains and
pulses;
• Automated quality control of handling operations;
• Development of sprinkling and irrigation systems;
• Climate-driven selection
Significance
(score from 1 to 5)
KEY RISKS
139
Corporate governance / RISK MANAGEMENT
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

Description Management
Animal and plant diseases
Climatic changes and evolution cause new dangerous diseases of the
livestock and plants to emerge that can adversely affect the produc-
tion results of the Agriculture, Sugar, Meat Businesses of the Company.
The most hazardous diseases are sugar beet diseases, pests, highly
dangerous virus and infectious diseases of pigs, such as ASF, por-
cine reproductive and respiratory syndrome, swine foot-and-mouth
disease, and atypical pneumonia.
• Transport and inventory flow control and decontamination;
• Prevention of physical contact of farm-bred pigs with wild animals;
• Health monitoring of pigs reared at the Company's production
facilities;
• Monitoring of ASF disease incidents in Russia;
• Pest control by treating plants and seeds with insecticides and
fungicides
Epidemics and pandemics
The occurrence of epidemics and pandemics in Russia (in particular
COVID-19) could have a negative impact on the Company's profits as
a result of restrictions on the business activities of the Company and
its counterparties. In particular, there are risks of plant shutdowns,
loss of productivity when switching to work from home, delays in the
execution and implementation of commercial contracts, freezing of
construction and repair jobs.
• Establishment of a prompt response headquarters to develop an-
ti-crisis measures and monitor their implementation;
• Restricted movements of employees between the Company's offices
and production sites, as well as less travel to other regions and
countries;
• Distribution of additional personal protective equipment and anti-
septics, additional disinfection measures;
• Comprehensive communication programme to keep employees
informed, launch of dedicated hotlines for employees;
• Support for employees to carry out regular testing and vaccinations
Process-related errors
Human errors in the planning and implementation of technological
operations can have negative consequences on production results and
production costs. Agronomic errors are detrimental to the results of
the Agriculture and Sugar Businesses, and poor technology at a meat
processing plants – to the the results of the Meat Business.
• Monitoring and better management of the personnel, including
through the development of effective motivation systems;
• Development of standards, regulations and instructions for the im-
plementation of process-related operations and their enforcement;
• Automation and digitalisation of planning processes, management
of production activities
Losses due to higher cost of meat business project in the Primorye Territory and its delayed launch
The risk of higher costs for a pig farming project in the Primorye Terri-
tory is associated with the remoteness of the construction region from
industrial centres, the lack of qualified engineering and labour person-
nel in the region and weather conditions. This can lead to higher costs
and longer delivery times for construction materials, cash flow gaps
due to failure to submit supporting construction documents on time,
and additional costs to deal with excessive rainfall and the effects of
typhoons.
• The Company scheduled and is currently implementing the
measures to protect its areas against natural phenomena common
for the Primorye Territory, including the construction of additional
surface water collection and drainage systems;
• The construction contracted large-scale companies with their own
logistics network both in Russia and abroad, in-house engineering
and operation personnel. This increases the cost of project imple-
mentation, but mitigates the risk of longer timelines
1
KEY RISKS
Significance
(score from 1 to 5)
1.
The launch of
theproject in 2021
reduced the risk.
140
Corporate governance / RISK MANAGEMENT
CORPORATE GOVERNANCE
RUSAGROGROUP.RU/EN

06
APPENDICES
ANNUAL REPORT 2021
ABOUT RUSAGRO
01
STRATEGIC
REPORT
02
REVIEW OF RUSAGRO'S
BUSINESS RESULTS FOR 2021
03
CONSOLIDATED
FINANCIAL RESULTS
04
05
CORPORATE
GOVERNANCE
142 ROS AGRO PLC International Financial
Reporting Standards Consolidated
Financial Statements and Independent
Auditors’ Report 31 December 2021
185 Contact information
APPENDIX
RUSAGROGROUP.RU/EN

Contents
BOARD OF DIRECTORS AND OTHER OFFICERS
CONSOLIDATED MANAGEMENT REPORT
DIRECTORS’ RESPONSIBILITY STATEMENT
INDEPENDENT AUDITORS’ REPORT
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Statement of Financial Position ...........................................................................................
Consolidated Statement of Profit or Loss and Other Comprehensive Income .........................................
Consolidated Statement of Changes in Equity ..........................................................................................
Consolidated Statement of Cash Flows ....................................................................................................
Notes to the Consolidated Financial Statements
1.
Background .....................................................................................................................................
2.
Summary of significant accounting policies ....................................................................................
3.
Cash and cash equivalents .............................................................................................................
4.
Short-term investments ...................................................................................................................
5.
Trade and other receivables ...........................................................................................................
6.
Prepayments ...................................................................................................................................
7.
Other taxes receivable ....................................................................................................................
8.
Inventories .......................................................................................................................................
9.
Biological assets .............................................................................................................................
10.
Long-term investments ....................................................................................................................
11.
Property, plant and equipment ........................................................................................................
12.
Right-of-use assets and lease liabilities ..........................................................................................
13.
Intangible assets .............................................................................................................................
14.
Share capital, share premium and transactions with non-controlling interests ...............................
15.
Borrowings ......................................................................................................................................
16.
Trade and other payables ...............................................................................................................
17.
Other taxes payable ........................................................................................................................
18. Government grants .........................................................................................................................
19.
Sales ...............................................................................................................................................
20.
Cost of sales ...................................................................................................................................
21.
Distribution and selling expenses ...................................................................................................
22.
General and administrative expenses .............................................................................................
23. Other operating income, net............................................................................................................
24. Interest expense and other finance income/ (costs), net ................................................................
25.
Goodwill...........................................................................................................................................
26.
Income tax .......................................................................................................................................
27.
Related party transactions ..............................................................................................................
28.
Earnings per share ..........................................................................................................................
29. Segment information .......................................................................................................................
30.
Financial risk management .............................................................................................................
31.
Contingencies .................................................................................................................................
32.
Commitments ..................................................................................................................................
33.
Subsequent events ..........................................................................................................................
149
149
150
151
151
152
162
163
163
164
164
164
164
165
166
166
167
167
168
170
170
170
171
172
172
172
172
173
173
173
174
175
176
180
184
184
185
ROS AGRO PLC
International Financial
Reporting Standards
Consolidated Financial Statements
and Independent Auditors’ Report
31 December 2021
142
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
BOARD OF DIRECTORS AND OTHER OFFICERS
Board of Directors
Mr. Vadim Moshkovich
Chairman of the Board of Directors
President of LLC Rusagro Group of Companies
Mr. Anastassios Televantides
Chairman of the Audit Committee
Independent Director
Mr. Richard Andrew Smyth
Member of the Audit Committee
Independent Director
Mrs. Ganna Khomenko
Member of the Audit Committee
Managing Director
Mr. Maxim Basov
Executive Director
Board Support
The Company Secretary is available to advise all Directors to ensure compliance with the Board
procedures.
Company Secretary
Fiduciana Secretaries Limited
8 Mykinon
CY-1065, Nicosia
Cyprus
Registered office
25 Aphrodite Street
3rd floor, Office 300
CY-1060, Nicosia
Cyprus
ROS AGRO PLC
CONSOLIDATED MANAGEMENT REPORT
The Board of Directors presents its report together with the audited consolidated financial statements
of ROS AGRO PLC (the “Company”) and its subsidiaries (collectively the “Group”) for the year ended
31 December 2021. The Group’s consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”) and the
requirements of the Cyprus Companies Law, Cap. 113.
Principal activities
The principal activities of the Group are the agricultural production (cultivation of sugar beet, grain
and other agricultural crops), cultivation of pigs, processing of raw sugar and production of sugar
from sugar beet, vegetable oil production and processing.
Review of developments, position and performance of the Group’s business
In 2021 revenue increased by RR 63,961,404 thousand or 40%. All segments demonstrated an increase
in revenue. The major contributor to the sales increase was the Oil and Fat segment where turnover was
higher by RR 45,510,350 thousand or 57% comparing to the previous year. Revenue in Sugar segment
/increased by 29%, in the Agricultural and in Meat segments increased by 22%.
In 2021 Adjusted EBITDA increased by RR 16,075,715 thousand or 50% with positive dynamics in all
segments except Meat. The highest increase demonstrated the Agriculture and Oil and Fat divisions due
to the increase in gross profits. EBITDA in the Agricultural division was higher by RR 8,060,003 thousand
or 53% and in the Oil and Fat division by RR 3,411,254 thousand or 36% growth. EBITDA in the Sugar
segment increased by 41% and in the Meat segment decreased by 9%.
In 2021 the Group investments in property, plant and equipment and inventories intended for construction
amounted to RR 42,505,370 thousand on a cash basis. Investments in the Oil and Fat division amounted
to RR 30,792,485 thousand, including SolPro assets acquisition amounted to RR 28,735,087 thousand.
Investments of RR 8,052,382 thousand were made in the Meat segment and were mainly related to pig
farm construction in Primorsky Krai. The Agricultural segment invested RR 2,660,291 thousand in
acquisition of land, new agricultural machinery and equipment. The Sugar segment invested RR 1,000,212
thousand in modernization of the sugar plants.
Changes in the Group’s structure
The following company was liquidated during the year:
 LLC Primorskaya Niva on 28 October 2021
The Group obtained 100.00% of ownership interest in the newly incorporated companies:
 LLC Rusagro-Zakupki on 12 March 2021
 LLC Rusagro-NPK on 27 May 2021
 LLC Agromeliorant on 23 August 2021
 LLC RusagroTechnologii on 6 August 2021
 LLC Rusagro-Altai on 25 October 2021
The Group acquired 100.00% of ownership interest in the company:
 LLC Tsyfrovoi Fermer on 22 November 2021
On 22 October 2021 the Group acquired 25% additional shares in LLC Primorskaya Soya, thereby
increasing its shares in the share capital of LLC Primorskaya Soya to 100% (2020: 75%).
For more details regarding the Group structure refer to Note 1 and Note 29 of the consolidated financial
statements.
Principal risks and uncertainties
The Group’s critical estimates and judgments and financial risk management are disclosed in Notes 2
and 30 to the consolidated financial statements. The Group’s operating environment is disclosed
in Note 1 to the consolidated financial statements.
143
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
CONSOLIDATED MANAGEMENT REPORT
The Group’s contingencies are disclosed in Note 31 to the consolidated financial statements.
Future developments
In 2021 and beyond, the Group plans to continue modernization and expansion of its production and
storage facilities in all business segments. The Group plans to make further developments in the Far East
region in agricultural and meat businesses.
Results
The Group’s results for the year are set out on page 2 of the consolidated financial statements.
Human resources management and environmental protection
The Group offers its employees opportunities to realize their professional potential, improve their knowledge
and skills, work on interesting innovative projects and be part of a cohesive team. Group management
believes that one of the keys to a successful business is maintaining a balance between the high quality
and efficient work of all employees who share common values and principles on one hand, and the
Company’s commitment to providing opportunities for career growth on the other. Group business divisions
annually prepare and implement employee training and development plans based on the business’s
strategic and current objectives, as well as needs identified by comprehensive assessment. Based on the
results of a comprehensive assessment, every employee draws up an individual development plan for a
period of one to two years that lists all training and development activities that are intended to advance the
employee’s skills or pass on the knowledge they have gained.
The Group is committed to protecting the environment and minimizing the environmental impact of its
operations in regions where it has a presence. All of the Group’s divisions constantly monitor wastewater
runoff and air quality, and are equipped with treatment facilities that meet all the standards of applicable
environmental legislation. The Group has implemented guidelines for maximum allowable emissions and
guidelines for waste generation and established sanitary buffer zones for warehouses storing crop
protection agents. The Group also returns packaging from crop protection agents and fertilizer to
counterparties and performs soil deacidification efforts on farmland.
The composition and diversity information of the Board of Directors of the Group
The authority and responsibilities of the Board of Directors are described in the Internal Rules of the Board
of Directors.
On behalf of all shareholders and on the proposal or advice of the Management Board, the Board of
Directors lays down the strategy and general policy of the Group. It also sets the Group’s standards and
monitors the implementation of that strategy.
It controls and gives direction to the management of the company and the Group and provides monitoring
of risks.
It also ensures that the principles of good governance are respected.
The Board’s acts are guided solely by a concern for the interests of the Company in relation to its
shareholders, its customers and staff.
The Board of Directors is the decision-making body of our Group. Its role is to define the Group's strategic
vision, assisted by a specialized committee (the Audit Committee). It is composed of 5 Directors, including
2 independent Directors and 1 managing Director. The Board offers a diverse and synergistic range of
experience, nationalities and cultures and enables us to consider the interests of all our shareholders.
The Board has determined that, as a whole, it has the appropriate skills and experience necessary to
discharge its functions. Executive and independent Directors have the experience required to contribute
meaningfully to the Board’s deliberations and resolutions. Independent Directors assist the Board by
constructively challenging and helping develop strategy proposals.
ROS AGRO PLC
CONSOLIDATED MANAGEMENT REPORT
Dividends
Pursuant to its Articles of Association the Company may pay dividends out of its profits. In August 2013 the
Board of Directors has approved a new dividend policy with payout ratio of at least 25% of the Group’s
profit for the year applicable starting from the year ended 31 December 2013. On 13 September 2021 the
Board of Directors has approved a new dividend policy with increased payout ratio to at least 50% of the
Group’s profit for the year. To the extent that the Company declares and pays dividends, owners of Global
Depositary Receipts (hereafter also referred as “GDRs”) on the relevant record date will be entitled to
receive dividends payable in respect of Ordinary Shares underlying the GDRs, subject to the terms of the
Deposit Agreement.
The Company is a holding company and thus its ability to pay dividends depends on the ability of its
subsidiaries to pay dividends to the Company in accordance with the relevant legislation and contractual
restrictions. The payment of such dividends by its subsidiaries is contingent upon the sufficiency of their
earnings, cash flows and distributable reserves. The maximum dividend payable by the Company`s
subsidiaries is restricted to the total accumulated retained earnings of the relevant subsidiary, determined
according to the Russian law.
In 2021 the Company distributed RR 10,770,584 thousand of remaining dividends for 2020 and
RR 8,755,947 thousand of interim dividends for 2021. The remaining dividends for 2020 amounted to
RR 400.30 per share and interim dividends for 2021 amounted to RR 325.42 per share.
Subsequent to the year ended 31 December 2021, the Board of Directors recommends the payment of
additional dividends out of the profits for 2021 in the amount of RR 11,928,542 thousand. Given that the
Company has already paid interim dividends for the 2021 in the amount of RR 8,755,947 thousand, the
total dividend out of the profits for 2021 and prior years' undistributed reserves amounts to RR 20,684,489
thousand.
The proposed dividend is subject to approval by the shareholders at the Annual General Meeting. These
consolidated financial statements do not reflect the dividends that have not been approved on the reporting
date.
Share capital
There were no changes in the share capital of the Company during 2020 and 2021.
The role of the Board of Directors
The Company is governed by its Board of Directors (hereafter also referred as the “Board”) which is
collectively responsible to the shareholders for the successful performance of the Group.
The Board sets corporate strategic objectives, ensuring that the necessary financial and human resources
are in place for the Group to meet its objectives and reviewing management performance.
The Board of Directors sets the Group’s values and standards and ensures all obligations
to shareholders are understood and met. The Board believes it maintains a sound system of internal control
to safeguard the Group’s assets and shareholders’ investments in the Group.
Significant direct/indirect holdings
For the significant direct and indirect shareholdings held by the Company, please refer to Note 1 of the
consolidated financial statements.
Members of the Board of Directors
The members of the Board of Directors at 31 December 2021 and at the date of this report are shown in
the beginning of these consolidated financial statements. All of them were members of the Board throughout
the year ended 31 December 2021.
In accordance with the Company’s Articles of Association, one third of the Directors shall retire by rotation
and seek re-election at each Annual General Meeting.
The Company’s Directors’ remuneration is disclosed in Note 27. There were no any significant changes to
the Directors’ remuneration during the year ended 31 December 2021.
144
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
CONSOLIDATED MANAGEMENT REPORT
Directors’ Interests
The Directors Mr. Vadim Moshkovich, Mr. Maxim Basov, Mr. Richard Andrew Smyth and Mr. Anastassios
Televantides held interest in the Company as at 31 December 2021 and 31 December 2020.
Mr. Vadim Moshkovich had no direct interest in the Company as at 31 December 2021 and 31 December
2020. The number of shares held indirectly through a company controlled by him as at 31 December 2021
is 15,367,829 (31 December 2020: 19,327,829).
The number of shares and GDRs held directly by Mr. Maxim Basov as at 31 December 2021 is
1,000,000 and 5,392,809 (equivalent of 1,078,562 shares), respectively (31 December 2020:
1,000,000 shares and 5,084,809 GDRs equivalent to 1,016,962 shares).
The number of GDRs held directly by Mr. Richard Andrew Smyth as at 31 December 2021 and
31 December 2020 is 31,125 (equivalent of 6,225 shares).
The number of GDRs held directly by Mr. Anastassios Televantides as at 31 December 2021 and
31 December 2020 is 10,000 (equivalent of 2,000 shares).
Audit Committee
The Board of Directors has established an Audit Committee. The Audit Committee is primarily responsible
for (i) ensuring the integrity of our consolidated financial statements, (ii) ensuring our compliance with legal
and regulatory requirements, (iii) evaluating our internal control and risk management procedures,
(iv) assuring the qualification and independence of our independent auditors and overseeing the audit
process and (v) resolving matters arising during the course of audits and coordinating internal audit
functions. The Audit Committee consists of three members appointed by the Board of Directors.
The current members are Mr. Anastassios Televantides (Chairman), Mr. Richard Andrew Smyth
and Mrs. Ganna Khomenko.
Internal control and risk management systems in relation to the financial reporting process
The internal control and risk management systems relating to financial reporting are designed to provide
reasonable assurance regarding the reliability of financial reporting and to ensure compliance with
applicable laws and regulations. The Audit Committee of the Board of directors of the Company reviews
high-risk areas at least once a quarter. Reporting from various Group entities to the central office is
supervised on an ongoing basis and procedures have been established for control and checking of such
reporting. With each acquisition the Group seeks to adapt and incorporate the financial reporting system of
the acquired operations quickly and efficiently.
Corporate Governance
Since 2011, the Company adopted the following codes: Code of Conduct on insider information and Code
of Business Conduct and Ethics. In addition, since May 2014 the Company together with its subsidiaries
and affiliates adopted a new edition of the Codes for mandatory compliance by all employees. In 2017 the
Company adopted a new Code of Conduct and Business Ethics.
Non-Financial and Diversity Information
The Group publishes its non -financial information and Diversity Statement together with the Annual report
on the Company’s website, www.rusagrogroup.ru.
Events after the balance sheet date
The material events after the consolidated balance sheet date are disclosed in Note 1 and 33 to the
consolidated financial statements. The Board considered the effects of the circumstances disclosed in Note
1 and concluded that no significant impact is expected to affect the Group’s operations.
Branches
The Company operated through its branches in the United Arab Emirates and Hong Kong during the
year.
ROS AGRO PLC
CONSOLIDATED MANAGEMENT REPORT
Treasury shares
On 25 August 2011 the Board unanimously resolved that it is in the best interest of the Company to buy
back GDRs from the market for the total amount of up to USD 10 million increased to up to USD 30 million
via subsequent Board's decision on 17 July 2012.
At 31 December 2021 and 2020, the Company held 2,135,113 of its own GDRs (approximately 427,063
shares) that is equivalent to RR 490,607 thousand, representing 1.6% of its issued share capital. The GDRs
are held as ‘treasury shares’.
In 2020, the Company transfer 31,000 of its own GDRs (approximately 6,200 shares) from those held as
treasury shares to employees of the Group representing 0.02% of the issued share capital. No GDRs were
transferred to the employees under the share option incentive scheme during 2021.
During 2021 and 2020 the Company did not buy back any of its own GDRs from the market.
Research and development activities
The Group is not engaged in research and development activities.
Going Concern
Directors have access to all information necessary to exercise their duties. The Directors continue
to adopt the going concern basis in preparing the consolidated financial statements based on the fact that,
after making enquiries and following a review of the Group’s budget for 2022, including cash flows and
borrowing facilities, the Directors consider that the Group has adequate resources to continue in operation
for the foreseeable future.
Independent Auditors
On 13 August 2021 it was agreed by the board that rotation of the auditors would take place every 5 years
for the purpose of getting objective and fresh view over Company’s performance and business processes,
especially in terms of rapid growth. On 26 November 2021 EGM approved replacement of the independent
auditor from PricewaterhouseCoopers Limited to KPMG Limited Chartered Accountants.
By Order of the Board
___________________________
Vadim Moshkovich
Chairman of the Board of Directors
Larnaca
25 February 2022
145
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APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
DIRECTORS’ RESPONSIBILITY STATEMENT
The Company's Board of Directors is responsible for the preparation of the consolidated financial
statements that give a true and fair view in accordance with International Financial Reporting Standards as
adopted by the European Union and the requirements of the Cyprus Companies Law, Cap.113, and for
such internal control as the Board of Directors determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error. This responsibility
includes selecting appropriate accounting policies and applying them consistently; and making accounting
estimates and judgements that are reasonable in the circumstances.
In preparing the consolidated financial statements, the Board of Directors is also responsible for assessing
the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Board of Directors either intends to
liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Each of the Directors confirms to the best of his or her knowledge that the consolidated financial statements,
which are presented on pages 1 to 68, have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union and the requirements of the Cyprus Companies
Law, Cap.113, give a true and fair view of the assets, liabilities, financial position and profit or loss of the
Company.
Further, the Board of Directors confirms that, to the best of its knowledge:
(i) adequate accounting records have been maintained which disclose with reasonable accuracy the
financial position of the Company and explain its transactions;
(ii) all information of which it is aware that is relevant to the preparation of the consolidated financial
statements, such as accounting records and all other relevant records and documentation, has been
made available to the Company’s auditors;
(iii) the consolidated financial statements disclose the information required by the Cyprus Companies
Law, Cap.113 in the manner so required;
(iv) the Management Report has been prepared in accordance with the requirements of the Cyprus
Companies Law, Cap.113, and the information given therein is consistent with the consolidated
financial statements;
(v) the information included in the corporate governance statement in accordance with the requirements
of subparagraphs (iv) and (v) of paragraph 2(a) of Article 151 of the Cyprus Companies Law, Cap.
113, and which is included as a specific section of the Management Report, have been prepared in
accordance with the requirements of the Cyprus Companies Law, Cap, 113, and is consistent with
the consolidated financial statements; and
(vi) the corporate governance statement includes all information referred to in subparagraphs (i), (ii), (iii),
(vi) and (vii) of paragraph 2(a) of Article 151 of the Cyprus Companies Law, Cap. 113.
By Order of the Board
___________________________
Vadim Moshkovich
Chairman of the Board of Directors
Larnaca
25 February 2022
�
KPMG Limited
Chartered Accountants
14 Esperidon Street, 1087 Nicosia, Cyprus
Р.О. Вох 21121, 1502 Nicosia, Cyprus
Т: +357 22 209000, F: +357 22 678200
INDEPENDENT AUDIТORS' REPORT ТО ТНЕ MEMBERS
OF
ROSAGROPLC
Report оп the audit of the consolidated financial statements
Opinion
We have audited the accompanying consolidated financial statements of ROS AGRO
PLC (the "Company') and its subsidiaries (the "Group'), which are presented on pages
1 to 68 and comprise the consolidated statement of financial position as at 31 December
2021, and the consolidated statements of profit or loss and other comprehensive
income, changes in equity and cash flows for the year then ended, and notes to the
consolidated financial statements, including а summary of significant accounting
policies.
In our opinion, the accompanying consolidated financial statements give а true and fair
view of the consolidated financial position of the Group as at 31 December 2021, and
of its consolidated financial performance and its consolidated cash flows for the year
then ended in accordance with International Financial Reporting Standards as adopted
Ьу the European Union (''IFRS-EU') and the requirements of the Cyprus Companies
Law, Сар. 113, as amended from time to time (the "Companies Law, Сар.113').
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing ("ISAs").
Our responsibilities under those standards are further described in the ''Auditors'
responsibllities for the audit of the consolidated financial statements" section of our
report. We are independent of the Group in accordance with the International Code of
Ethics (Including lnternational Independence Standards) for Professional Accountants of
the lnternational Ethics Standards Board for Accountants (''IESBA Code') together with
the ethical requirements in Cyprus that are relevant to our audit of the financial
statements, and we have fulfilled our other ethical responsibllities in accordance with
these requirements and the IESBA Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide а basis for our opinion.
146
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APPENDIX
RUSAGROGROUP.RU/EN

Кеу audit matters
Кеу audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the consolidated financial statements of the current period. These matters were addressed in the context of
our audit of the consolidated financial statements as а whole, and in forming our opinion thereon, and we do
not provide а separate opinion on these matters.
Assessment of fair value of investment in 1,1,С GK Agro - Belogorie
Please refer to the Note 10 in the financial statements.
The key audit matter
This issue has become а key focus area
for our audit due to the significance of the
amounts and the subjective nature of the
valuation of investment in LLC GK Agro
Belogorie.
How the matter was addressed in our audit
We involved our own valuation specialists to assist us in evaluating the
assumptions and methodologies used Ьу the Company.
Among others, our audit procedures included:
At 31 December 2021, the carrying
amount of investment in LLC GK Agro
-
-
Belogorie at fair value through other
comprehensive income amounted to RUB
-
8 556 556 thousand.
evaluating the principles and the integrity of the Company's
discounted cash flow model
assessing the reasonaЫeness of the Company's assumptions
including projected ЕВIТDА margins and discount rates
assessing the accuracy of the Company's historic financial
information to support evaluation of forecasts incorporated in the
The fair value of this investment was
measured using а discounted cash flow
model based prirnarily on unobservaЫe
inputs and involving significant
management judgment.
discounted cash flow model
We also considered the adequacy of the Company's disclosures with
regard to fair value measurement of this investment.
Acquisition of Assets frorn Solnechnye producty
Please refer to the Note 4 and Note 15 in the financial statements.
The key audit matter
During 2018, the Group entered into а
transaction involving the acquisition of
secured deЬt from а third
-
party group of
companies Solnechnye Producty
(SolPro), which were classified as short
term and long-term investments and
initially recognized at fair value.
During 2021 the Group purchased assets
of SolPro in the amount of RUB 28 202
943 thousand and recognised а reversal of
expected credit loss allowance for the
loans receivaЫe from SolPro in the
amount of RUB 4 804 688 thousand due
to settlement of the debts in the excess of
the carrying amount recognised.
At 31 December 2021, the carrying
amount of investment
ш SolPro
recognised at amortised cost amounted to
RUB 1591 805 thousand
How the matter was addressed in our audit
We assessed whether the assets acquired Ьу the Group from SolPro meet
definition of business under IFRS 3 Ьу analysing whether elements of
definition of the business are present.
We assessed whether the Group might have obtained control over SolPro
assets before acquisition of those assets Ьу analysing the rights of the
Group as the main creditor over the relevant activities of SolPro during
the bankruptcy process.
We also considered the adequacy of the Group's disclosures with regard
to this transaction.
Given the overall complexity of the
transaction and the judgements applied in
this calculation we consider this to Ье а
key audit matter.
Other information
The Board of Directors is responsiЫe for the other information. The other information comprises the
consolidated management report, which we oЬtained prior to the date of this report, and the Company's Annual
Report, other than the consolidated financial statements and our auditors' report thereon, which is expected to
Ье made availaЫe to us after that date.
Ош opinion оп the consolidated financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon, except as required Ьу the Companies Law, Сар.113.
In connection with our audit of the consolidated financial statements, our responsiЬility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears to Ье materially
misstated. If, based оп the work we have performed, we conclude that there is а material misstatement of this
other information, we are required to report thatfact.
With regards to the consolidated management report, our report in this regard is presented in the
"Report оп
other Legal requirements"
section.
When we read the Company's Annual Report, if we conclude that there is а material misstatement therein, we
are required to communicate the matter to those charged with governance and if not corrected, we will bring
the matter to the attention of the members of the Company at the Company's Annual General Meeting and we
will take such other action as may Ье required.
Responsibllities of the Board of Directors and those charged with governance for the consolidated financial
statements
The Board of Directors is responsiЫe for the preparation of consolidated financial statements that give а true
and fair view in accordance with IFRS-EU and the requirements of the Companies Law, Сар. 113, and for such
internal control as the Board of Directors determines is necessary to еnаЫе the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsiЫe for assessing the
Group's aЬility to continue as а going concern, disclosing, as applicaЫe, matters related to going concern and
using the going concern basis of accounting, unless there is an intention to either liquidate the
Group or to cease
operations, or there is по realistic alternative but to do so.
The Board of Directors and those charged with governance are responsiЫe for overseeing the Group's financial
reporting process.
147
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APPENDIX
RUSAGROGROUP.RU/EN

Auditors'
responsiЬilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonaЫe assurance about whether the consolidated financial statements as а whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes
our opinion. ReasonaЫe assurance is а high level of assurance but is not а guarantee that an audit conducted in
accordance with ISAs will always detect а material misstatement when it exists. Misstatements сап arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonaЫy Ье expected
to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
•
•
•
•
•
•
Identify and assess the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide а basis for our opinion. The risk of not detecting
а material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonaЫeness of accounting estimates
and related disclosures made Ьу the Board ofDirectors.
Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting
and, based on the audit evidence oЬtained, whether а material uncertainty exists related to events or
conditions that may cast significant doubt on the Group's aЬility to continue as а going concern. If we
conclude that а material uncertainty exists, we are required to draw attention in our auditors' report to
the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence oЬtained up to the date of our
auditors' report. However, future events or conditions may cause the Group to cease to continue as а
going concern.
Evaluate the overall presentation,
structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in а manner that achieves а true and fairview.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities of the Group to express an opinion on the consolidated financial statements. We are
responsiЫe for the direction, supervision and performance of the Group audit. We remain solely
responsiЫe for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the consolidated financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditors' report.
Report оп other legal requirements
Pursuaпt to the additioпal requirements of the Auditors Law 2017, L.53(1)/2017, as amended from time to time
("Law L.53(1)/2017'), and based оп the work undertaken in the course of our audit, we report the following:
•
In our opinion, the consolidated management report, the preparation of which is the responsibility of
the Board of Directors, has been prepared in accordance with the requirements of the Companies Law,
Сар 113, and the information given is consistent with the consolidated financial statements.
•
In the light of the knowledge and understanding of the business and the Group's environment oЬtained
in the course of the audit, we have not identified material misstatements in the consolidated management
report.
Other Matters
Reporting responsibilities
This report, including the opinion, has been prepared for and only for the Company's members as а body in
accordance with Sectioп 69 of Law L.53(1)/2017 and for по other purpose. We do not, in giving this opinion,
accept or assume responsibllity for any other purpose or to any other person to whose knowledge this report
may
соте to.
Comparative figures
The consolidated financial statements of the Group for the year ended 31 December 2020 were audited Ьу another
auditor who expressed аn unmodified opinion оп those consolidated financial statements on 14 March 2021.
The engagement partner on the audit resulting in this independent auditors' report is Antonis I. Shiammoutis.
�ntonis I. Shiammoutis
Certified PuЫic Accountant and Registered Auditor
for and оп behalf of
КРМG Limited
Certified PuЫic Accountants and Registered Auditors
14 Esperidon Street
1087 Nicosia
Cyprus
25 February 2022
148
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
The accompanying notes on pages 151 to 185 are an integral part of these consolidated financial statements.
Note
31 December 2021
31 December 2020
ASSETS
Current assets
Cash and cash equivalents
3
46,462,179
11,866,798
Restricted cash
47
143,637
Short-term investments
4
21,001,760
19,583,523
Trade and other receivables
5
12,558,401
9,512,286
Prepayments
6
5,414,032
2,941,224
Current income tax receivable
1,532,726
646,162
Other taxes receivable
7
8,321,193
5,506,675
Inventories
8
69,756,363
63,266,389
Short-term biological assets
9
7,752,670
5,734,979
Total current assets
172,799,371
119,201,673
Non-current assets
Property, plant and equipment
11
119,159,412
87,519,088
Inventories intended for construction
11
1,604,570
3,353,330
Right-of-use assets
12
7,346,538
6,934,567
Goodwill
25
2,364,942
2,364,942
Advances paid for property, plant and equipment
6
7,355,467
6,905,003
Long-term biological assets
9
2,744,863
2,528,128
Long-term investments
10
42,527,657
42,692,320
Investments in associates
359,782
257,782
Deferred income tax assets
26
4,835,268
3,566,168
Intangible assets
13
1,144,057
619,793
Other non-current assets
79,125
205,793
Total non-current assets
189,521,681
156,946,914
TOTAL ASSETS
362,321,052
276,148,587
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings
15
108,748,840
51,753,475
Lease liabilities
12
1,130,831
943,859
Trade and other payables
16
15,440,635
16,016,138
Current income tax payable
464,471
69,546
Other taxes payable
17
7,454,558
4,096,199
Provisions for other liabilities and charges
494,709
179,796
Total current liabilities
133,734,044
73,059,013
Non-current liabilities
Long-term borrowings
15
63,975,025
63,175,720
Government grants
18
9,325,530
8,536,899
Lease liabilities
12
5,535,014
4,855,508
Deferred income tax liabilities
26
1,876,244
487,049
Total non-current liabilities
80,711,813
77,055,176
TOTAL LIABILITIES
214,445,857
150,114,189
EQUITY
Share capital
14
12,269
12,269
Treasury shares
14
(490,607)
(490,607)
Share premium
14
26,964,479
26,964,479
Share-based payment reserve
27
1,313,691
1,313,691
Fair value reserve
49,486
49,486
Retained earnings
120,080,307
98,185,038
Equity attributable to owners of ROS AGRO PLC
126,034,356
Non-controlling interest
(54,430)
42
TOTAL EQUITY
147,875,195
126,034,398
TOTAL LIABILITIES AND EQUITY
362,321,052
276,148,587
___________________________________
Ganna Khomenko
Director of ROS AGRO PLC
___________________________________
Vadim Moshkovich
Chairman of the Board of Directors
Approved for issue and signed on behalf of the Board of Directors on 25 February 2022.
147,929,625
ROS AGRO PLC
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
The accompanying notes on pages 151 to 185 are an integral part of these consolidated financial statements.
Note
Year ended
31 December 202
1
Year ended
31 December 20
20
Sales 19 222,932,439 158,971,035
Net gain on revaluation of biological assets and
agricultural produce 9 3,409,309
5,890,447
Cost of sales 20 (169,248,281) (121,132,658)
Net (loss)/gain from trading derivatives 29 (5) 10,552
Gross profit
57,093,462
43,739,376
Distribution and selling expenses 21 (10,475,137) (9,760,841)
General and administrative expenses 22 (10,975,898) (7,377,449)
Reversal of provision/(provision) for impairment of loans
issued
15 4,574,481
(5,070,598)
Other operating income/(expenses), net 23 2,334,177 2,293,017
Operating profit
42,551,085
23,823,505
Interest expense 24 (5,498,991) (4,804,995)
Interest income calculated using the effective interest method 6,511,247 5,122,640
Other similar interest income 2,099,641 2,042,176
Net loss from bonds held for trading (1,630) (15,698)
Other financial income/(expenses), net 24 (705,356) (1,844,130)
Profit before income tax
44,955,996
24,323,498
Income tax expense 26 (3,522,144) (26,771)
Profit for the year
41,433,852
24,296,727
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Gains less losses on investments in equity securities at fair
value through other comprehensive income -
56,556
Income tax relating to other comprehensive income - (7,070)
Total comprehensive income for the year
41,433,852
24,346,213
Profit/(loss)is attributable to:
- Owners of ROS AGRO PLC 41,477,865 24,359,786
- Non-controlling interest (44,013) (63,059)
Profit for the year
41,433,852
24,296,727
Total comprehensive income/(loss) is attributable to:
- Owners of ROS AGRO PLC 41,477,865
24,409,272
- Non-controlling interest (44,013) (63,059)
Total comprehensive income for the year
41,433,852
24,346,213
Earnings per ordinary share for profit attributable to the
owners of ROS AGRO PLC, basic and diluted
(in RR per share) 28 1 541.57
905.39
149
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APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
The accompanying notes on pages 151 to 185 are an integral part of these consolidated financial statements.
Equity attributable to owners of ROS AGRO PLC
Notes
Share
Capital
Treasury
shares
Share
premium
Share-based
payment
reserve
Fair value
reserve
Retained
earnings*
Total Non-
controlling
interest
Total
equity
Balance at 1
January 2020
12,269
(490,607)
26,964,479
1,313,691
-
78,960,843
106,760,675
65,893
106,826,568
Total comprehensive income
for the year:
- - - - 49,486 24,359,786 24,409,272 (63,059) 24,346,213
Profit for the year - - - - - 24,359,786 24,359,786 (63,059) 24,296,727
Other comprehensive income for
the year
-
- - - 49,486 - 49,486 - 49,486
Dividends 14 - - - - - (5,138,383) (5,138,383) - (5,138,383)
Disposal of non-controlling interest 14 - - - - - 2,792 2,792 (2,792) -
Balance at 31
December 2020
12,269
(490,607)
26,964,479
1,313,691
49,486
98,185,038
126,034,356
42
126,034,398
Balance at 1
January 202
1
12,269
(490,607)
26,964,479
1,313,691
49,486
98,185,038
126,034,356
42
126,034,398
Total comprehensive income
for the year:
- - - - - 41,477,865 41,477,865 (44,013) 41,433,852
Profit for the year - - - - - 41,477,865 41,477,865 (44,013) 41,433,852
Dividends 14 - - - - - (19,526,532) (19,526,532) - (19,526,532)
Dividends to non-controlling interest
shareholders
-
- - - - (523) (523) - (523)
Acquisition of non-controlling
interest
14
-
- - - - (55,541) (55,541) (10,459) (66,000)
Balance at 31
December 202
1
12,269
(490,607)
26,964,479
1,313,691
49,486
120,080,307
147,929,625
(54,430)
147,875,195
*Retained earnings and Fair value reserve in the separate financial statements of the Company are the only reserves that are available for distribution in the form of dividends.
150
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APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
The accompanying notes on pages 151 to 185 are an integral part of these consolidated financial statements.
Note
Year ended
31 December 202
1
Year ended
31 December 20
20
Cash flows from operating activities
Profit before income tax
44,955,996
24,323,498
Adjustments for:
Depreciation and amortization
20, 21, 22
13,945,546
10,794,046
Interest expense
24
10,566,994
6,448,154
Government grants
23,24
(7,846,960)
(3,216,290)
Interest income
(8,610,888)
(7,164,816)
Net
loss
/
(gain) on disposal of
property, plant and equipment
23
4,424
(335,640)
Net gain
on revaluation of biological assets and agricultural produce
9
(3,409,309)
(5,890,447)
Change in provision for impairment of loans issued
(4,574,481)
5,070,598
Change in
provision for net realizable value of inventory
1,240,531
732,238
Interest expense on leases
12
591,558
580,276
The result from early repayment of the loan
23
-
131,363
Change in provision for impairment of receivables and
prepayments
824,151
13,592
Foreign exchange loss /(gain), net
23, 24
(59,354)
1,698,846
Lost harvest write
-
off
23
272,407
188,536
Net loss from bonds held for trading
1,630
15,698
Change in provision for impairment of advances paid for property, plant and
equipment
26,084
(29,620)
Change in other provisions
23
314,918
179,796
Gain on other investments
23
(754,538)
(560,568)
Realized deferred day
-
one gain
23
(552,748)
(993,558)
Loss on disposal of
other assets
23
256,144
-
Gain on SolPro loans redemption
23
(605,233)
-
Other non
-
cash and non
-
operating
expenses/
(income), net
234,325
(87,031)
Operating cash flows before working capital changes
46,821,197
31,898,671
Change in trade and other receivables and prepayments
(6,377,712)
(1,920,133)
Change in other taxes receivable
(2,814,518)
(1,157,275)
Change in inventories
(4,236,443)
(13,280,552)
Change in biological assets
(2,340,945)
(1,888,960)
Change in trade and other payables
82,068
(209,572)
Change in other taxes payable
3,278,845
708,164
Cash generated from operations
34,412,492
14,150,343
Income taxes paid
(3,679,541)
(2,033,327)
Net cash from operating activities
30,732,951
12,117,016
Cash flows from investing activities
Purchases of property, plant and equipment
(42,029,048)
(12,405,295)
Purchases of intangible assets
(
1,042,618
)
(418,808)
Purchases of land lease rights
(68,772)
(86,729)
Proceeds from sales of property, plant and equipment
896,286
687,757
Purchases of inventories intended for construction
(476,322)
(1,660,923)
Change in cash on bank
deposits
(18,000,000)
-
Purchases of associates
(102,000)
(92,712)
Purchases of bonds with maturity over three months
4
-
(197,523)
Proceeds from sales of bonds with maturity over three months
220,282
-
Purchases of loan issued
(2,256,313)
(13,829)
Loans repaid
22,959,494
1,012,854
Movement in restricted cash
140,894
(143,454)
Interest received
8,786,038
4,808,803
Dividends received
23
754,600
560,568
Purchases of other investments
(19,083)
-
Proceeds from sales of other investments
18,000
-
Proceeds from sales of other assets
217,591
-
Proceeds from sales of other investments
434,632
65,938
Net cash used in investing activities
( 29,566,339)
(7,883,353)
Cash flows from financing activities
Proceeds from borrowings
15
107,856,022
77,932,773
Repayment of borrowings
15
(52,668,951)
(65,389,365)
Interest and other finance cost paid
15
(4,591,935)
(4,196,451)
Purchases of non
-
controlling interest
(66,000)
-
Dividends paid to owners of ROS AGRO PLC
(19,417,565)
(5,134,426)
Proceeds from government grants
2,879,218
2,192,483
Repayment of lease liabilities
-
principal
15
(335,167)
(123,044)
Other financial activities
21,631
-
Net cash from financing activities
33,677,253
5,281,970
Effect of exchange rate changes on cash and cash equivalents
(248,484)
180,386
Net increase in cash and cash
equivalents
34,595,381
9,696,019
Cash and cash equivalents at the beginning of the year
3
11,866,798
2,170,779
Cash and cash equivalents at the end of the year
3
46,462,179
11,866,798
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
1. Background
Description of the business
These consolidated financial statements were prepared for ROS AGRO PLC (hereinafter the “Company”)
and its subsidiaries (hereinafter collectively with the Company, the “Group”). The Group is ultimately
controlled by Mr. Vadim Moshkovich (hereinafter the “Owner”), who controls 56.2% of the issued shares
in ROS AGRO PLC as at 31 December 2021 (31 December 2020: 70.7%).
The principal activities of the Group are:
 agricultural production (cultivation of sugar-beet, grain and other agricultural crops);
 cultivation of pigs and meat processing;
 processing of raw sugar and production of sugar from sugar-beet;
 vegetable oil extraction and processing.
The registered office of ROS AGRO PLC is at 25 Aphrodite Street, CY-1060, Nicosia, Cyprus.
The Group mainly operates in the Russian Federation except for goods trading activity. The subsidiaries of
the Group was incorporated and is domiciled in the Russian Federation except for Ros Agro Trading Limited
and Ros Agro China Limited which are incorporated in Hong Kong.
Principal subsidiaries of the Group included into these consolidated financial statements are listed below.
The Group’s ownership share is the same as the voting share.
Entity
Principal activity
Group’s share in the share capital,
%
31 December 20
2
1
31 December 20
20
JSC Rusagro Group Investment holding, financing 100 100
LLC Group of Companies Rusagro
Investment holding, financing
100
100
Ros Agro Trading Limited
Trading operations with goods for all
principal segments 100 100
LLC RusagroTechnologii
IT services
100
*
-
*
Sugar segment
LLC Rusagro-Sakhar
Sugar division trading company,
sales operations 100 100
LLC Rusagro
-
Belgorod
Beet and raw sugar processing
100
100
LLC Rusagro-Tambov Beet and raw sugar processing 100 100
JSC Krivets
-
Sakhar
Beet and raw sugar processing
100
100
JSC Kshenskiy Sugar Plant
Beet and raw sugar processing
100
100
JSC Otradinskiy Sugar Plant Beet and raw sugar processing 100 100
JSC Hercules
Buckwheat processing plant
100
100
Oil and Fat segment
JSC Fats and Oil Integrated Works
Oil processing
100
100
JSC Samaraagroprompererabotka Oil extraction 100 100
LLC Primorskaya Soya
Oil extraction and processing
100**
75**
LLC Rusagro-Saratov Oil processing 100 100
LLC Rusagro
-
Atkarsk
Oil extraction
100
100
LLC Rusagro
-
Balakovo
Oil extraction
100
100
LLC Rusagro
-
Zakupki
Oil and Fat raw materials
procurement
100*
-
*
Meat segment
LLC Tambovsky Bacon
Cultivation of pigs
100
100
LLC Rusagro-Primorie Cultivation of pigs 100 100
LLC Regionstroy
Construction for cultivation of pigs
100
100
Agriculture segment
LLC Rusagro
-
Invest
Agriculture
100
100
LLC Agrotehnology
Agriculture
100
100
JSC Primagro Agriculture 100 100
LLC
Kshenagro
Agriculture
100
100
LLC Otradaagroinvest Agriculture 100 100
LLC Vozrozhdenie
Agriculture
100
100
LLC Agromeliorant Production of fertilizers 100* -*
* Newly incorporated companies in 2021.
** The Group increased ownership interest in the company LLC Primorskaya Soya to 100% by acquiring remaining 25% stake on
22 October 2021.
151
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APPENDIX
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ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
1. Background (continued)
Russian Federation. The Russian Federation displays certain characteristics of an emerging market. Its
economy is particularly sensitive to oil and gas prices. The legal, tax and regulatory frameworks continue
to develop and are subject to frequent changes and varying interpretations (Note 31) which contribute
together with other legal and fiscal impediments to the challenges faced by entities operating in the Russian
Federation. The Russian economy continues to be negatively impacted by ongoing political tension in the
region and international sanctions against certain Russian companies and individuals.
Starting in 2014, the United States of America, the European Union and some other countries have imposed
and gradually expanded economic sanctions against a number of Russian individuals and legal entities.
The imposition of the sanctions has led to increased economic uncertainty, including more volatile equity
markets, a depreciation of the Russian rouble, a reduction in both local and foreign direct investment inflows
and a significant tightening in the availability of credit. As a result, some Russian entities may experience
difficulties accessing the international equity and debt markets and may become increasingly dependent
on state support for their operations. The longer-term effects of the imposed and possible additional
sanctions are difficult to determine.
In February 2022, following the recognition of self-proclaimed republics of Donetsk and Lugansk and the
commencement of military operations in Ukraine by the Russian Federation, additional sanctions were
introduced by the United States of America, the European Union and some other countries against Russia.
Moreover, there is an increased risk that even further sanctions may be introduced. This may have
significant adverse impact on Russia’s economy. These events have led to depreciation of the Russian
rouble, increased volatility of financial markets and significantly increased the level of economic uncertainty
in the Russian business environment. Also, the COVID-19 coronavirus pandemic has continued to create
additional uncertainty in the business environment. Management is taking necessary measures to ensure
sustainability of the Group’s operations and support its customers and employees. However, the future
effects of the current economic situation and the above measures are difficult to predict, and management’s
current expectations and estimates could differ from actual results.
Although the COVID-19 pandemic had no significant impact on business activity, the Group is taking actions
to reduce COVID-19 exposure and support its personnel. The specifics of the Group's business does not
allow transferring all personnel to distance work. However, the Group did utmost to increase the share of
employees handling their duties remotely. All employees were provided with personal protective equipment
and antiseptics, and all surfaces and common areas at offices and enterprises were given additional
disinfection. Maintaining business processes and additional focusing on occupational safety helped the
Group to demonstrate strong operating and financial results in 2021.
The consolidated financial statements reflect management’s assessment of the impact of the Russian
business environment on the operations and the financial position of the Group. The future business
environment may differ from management’s assessment.
2. Summary of significant accounting policies
2.1 Basis of preparation
These consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union (EU) and the requirements of the Cyprus
Companies Law, Cap.113. The consolidated financial statements have been prepared under the historical
cost convention, as modified by the initial recognition of financial instruments based on fair value, financial
instruments categorized at fair value through profit or loss and at fair value through other comprehensive
income, biological assets that are presented at fair value less point-of-sale costs and agricultural produce
which is measured at fair value less point-of-sale costs at the point of harvest. The Group entities registered
in Russia keep their accounting records in Russian Roubles in accordance with Russian accounting
regulations (RAR). These consolidated financial statements significantly differ from the financial statements
prepared for statutory purposes under RAR in that they reflect certain adjustments, which are necessary to
present the Group’s consolidated financial position, results of operations, and cash flows in accordance
with IFRS as adopted by the EU.
The principal accounting policies applied in the preparation of these consolidated financial statements are
set out below. These policies have been consistently applied to all the periods presented unless otherwise
stated.
The preparation of consolidated financial statements in conformity with IFRS as adopted by the EU requires
the use of certain critical accounting estimates. It also requires management to exercise its judgement in
the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.1 Basis of preparation (continued)
or complexity, or areas where assumptions and estimates are significant to the consolidated financial
statements are disclosed below in Note 2.2.
2.2 Critical Accounting Estimates and Judgements in Applying Accounting Policies
The Group makes estimates and assumptions that affect the amounts recognised in the consolidated
financial statements and the carrying amounts of assets and liabilities within the next financial year.
Estimates and judgements are continually evaluated and are based on management’s experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances. Management also makes certain judgements, apart from those involving estimations, in the
process of applying the accounting policies. Judgements that have the most significant effect on the
amounts recognised in the consolidated financial statements and estimates that can cause a significant
adjustment to the carrying amount of assets and liabilities within the next financial year include:
Useful lives of property, plant and equipment
The estimation of the useful lives of items of property, plant and equipment is a matter of judgement based
on the experience with similar assets. The future economic benefits embodied in the assets are consumed
principally through use. However, other factors, such as technical or commercial obsolescence and wear
and tear, often result in the diminution of the economic benefits embodied in the assets. Management
assesses the remaining useful lives in accordance with the current technical conditions of the assets and
estimated period during which the assets are expected to earn benefits for the Group. The following primary
factors are considered: (a) expected usage of the assets; (b) expected physical wear and tear, which
depends on operational factors and maintenance programme; and (c) technical or commercial
obsolescence arising from changes in market conditions.
Were the estimated useful lives to differ by 10% from management’s estimates, the impact on depreciation
for the year ended 31 December 2021 would be to increase it by RR 1,201,860 or decrease it by
RR 1,468,940 (2020: increase by RR 894,928 or decrease by RR 1,093,800).
Fair value of livestock and agricultural produce
The fair value less estimated point-of-sale costs of livestock at the end of each reporting period is
determined using the physiological characteristics of the animals, management expectations concerning
the potential productivity and market prices of animals with similar characteristics. The fair value of the
Group’s bearer livestock is determined by using valuation techniques, as there were no observable market
prices near the reporting date for pigs and cows of the same physical conditions, such as weight and age.
The fair value of the bearer livestock was determined based on the expected quantity of remaining farrows
and calves for pigs and cows, respectively, and the market prices of the young animals. The fair value of
mature animals is determined based on the expected cash flow from the sale of the animals at the end of
the production usage. The cash flow was calculated based on the actual prices of sales of culled animals
from the Group’s entities to independent processing enterprises taking place near the reporting date, and
the expected weight of the animals. Future cash flows were discounted to the reporting date at a current
market-determined pre-tax rate. In the fair value calculation of the immature animals of bearer livestock
management considered the expected culling rate.
Key inputs used in the fair value measurement of bearer livestock of the Group were as follows:
31 December 202
1
31 December 20
20
Cows Pigs
(sows)
Pigs
(boars)
Cows Pigs
(sows)
Pigs
(boars)
Length of production usage in calves / farrows -* 6 - 5 5 -
Market prices for comparable bearer livestock in the
same region (in Russian Roubles/kg, excl. VAT) -*
217 715 184 197 453
* Cows were bred for the purpose of production of milk and in 2021 were sold to external party.
152
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APPENDIX
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ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.2 Critical Accounting Estimates and Judgements in Applying Accounting Policies (continued)
Should the key assumptions used in determination of fair value of bearer livestock have been
10% higher/lower with all other variables held constant, the fair value of the bearer livestock as at the
reporting dates would be higher or lower by the following amounts:
31 December
202
1
31 December 20
20
10%
increase
10%
d
ecrease
10%
increase
10%
decrease
Cows
Length of production usage in calves -* -* 2,489 (3,026)
Market prices for comparable bearer livestock in the same region -* -* 10,252 (10,252)
Pigs
Length of production usage in farrows 66,079 (51,082)
50,090 (26,316)
Market prices for comparable bearer livestock in the same region 212,238 (212,238) 153,003 (153,003)
* Cows were bred for the purpose of production of milk and in 2021 were sold to external party.
The fair value of consumable livestock (pigs) is determined based on the market prices multiplied by
the livestock weight at the end of each reporting period, adjusted for the expected culling rates.
The average market price of consumable pigs being the key input used in the fair value measurement was
101.7 Russian Roubles per kilogram, excluding VAT, as at 31 December 2021 (31 December 2020:
88.7 Russian Roubles per kilogram, excluding VAT).
Should the market prices used in determination of fair value of consumable livestock have been 10%
higher/lower with all other variables held constant, the fair value of the consumable livestock
as at 31 December 2021 would be higher/lower by RR 583,222 (31 December 2020: RR 465,891).
The fair value less estimated point-of-sale costs for agricultural produce at the time of harvesting was
calculated based on quantities of crops harvested and the prices on deals that took place in the region
of location on or about the moment of harvesting and was adjusted for estimated point-of-sale costs
at the time of harvesting.
The average market prices (Russian Roubles/tonne, excluding VAT) used for fair value measurement
of harvested crops were as follows:
2021
2020
Sugar beet 3,677 3,512
Wheat 12,907 10,995
Barley 11,262 9,100
Sunflower 37,211 29,726
Corn 14,984 13,302
Soya bean 47,078 32,797
Rapeseed 46,375 -
Should the market prices used in determination of fair value of harvested crops have been 10% higher/lower
with all other variables held constant, the fair value of the crops harvested in 2021 would be higher/lower
by RR 4,041,059 (2020: RR 3,237,356).
The fair value less estimated point-of-sale costs for unharvested crops as at 31 December 2021 was
calculated based on expected yield, degree of readiness for each crop and the forward market prices. As
at 31 December 2020 unharvested crops were carried at the accumulated costs incurred, which
approximated the fair value.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.2 Critical Accounting Estimates and Judgements in Applying Accounting Policies (continued)
The average forward market prices (Russian Roubles/tonne, excluding VAT) used for fair value
measurement of unharvested crops at 31 December 2021 were as follows:
20
21
Winter wheat 13,001
Winter rapeseed 45,568
Should the forward market prices used in determination of fair value of growing crops have been 10%
higher/lower with all other variables held constant, the fair value of the crops as of 31 December 2021 would
be higher/lower by RR 181,700.
Fair value of investment in LLC GK Agro-Belogorie
Key inputs and assumptions used in the fair value measurement of investment in LLC GK Agro-Belogorie
are disclosed in Note 10 and Note 30. Change in fair value of investment in LLC GK Agro-Belogorie is
accounted within Fair value reserve line of Statement of financial position.
Estimated impairment of goodwill
The Group tests goodwill for impairment at least annually. The recoverable amounts of cash-generating
units (“CGUs”) have been determined based on value-in-use calculations. These calculations require the
use of estimates as further detailed in Note 25.
D eferred income tax asset recognition
The recognised deferred income tax asset represents income taxes recoverable through future deductions
from taxable profits and is recorded in the consolidated statement of financial position. Deferred income tax
assets are recorded to the extent that realisation of the related tax benefit is probable and in relation to
losses carried forward it is also based on management judgement about deductibility of expenses included
in the related profit tax base. The future taxable profits and the amount of tax benefits that are probable in
the future are based on a medium-term business plan prepared by management and extrapolated results
thereafter. The business plan is based on management expectations that are believed to be reasonable
under the circumstances. The key assumptions in the business plan are EBITDA margin and pre-tax
discount rate (Notes 25, 26).
Tax legislation
Russian tax, currency and customs legislation is subject to varying interpretations (Note 31).
Assessment of existence of control over the Group of companies Solnechnye producty
Management assessed the existence of control over Group of companies Solnechnye producty (hereinafter
– “Solnechnye producty”) in terms of control criteria set out in IFRS 10. The Group’s rights in relation to
Solnechnye producty being in the stage of bankruptcy are by nature protective and do not result in power
over investee. Additionally, the Group has no ability to exercise its rights in order to influence variable
returns from Solnechnye producty, meaning that at least two essential control existence criteria are not
met. Thus, management of the Group believes that control over Solnechnye producty does not exist.
Estimated credit loss measurement of loans issued to Solnechnye producty
Key inputs and assumptions used in the estimated credit loss measurement of loans issued to Solnechnye
producty are disclosed in Note 15.
Depreciation of right-of-use assets
Extension and termination options. In determining the lease term, management considers all facts and
circumstances that create an economic incentive to exercise an extension option, or not exercise a
153
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APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.2 Critical Accounting Estimates and Judgements in Applying Accounting Policies (continued)
termination option. Extension options (or periods after termination options) are only included in the lease
term if the lease is reasonably certain to be extended (or not terminated). For leases of buildings,
machinery, equipment and vehicles, the following factors are normally the most relevant:
 If there are significant penalties to terminate (or not extend), the Group is typically reasonably certain
to extend (or not terminate) the lease.
 If any leasehold improvements are expected to have a significant remaining value, the Group is
typically reasonably certain to extend (or not terminate) the lease.
Otherwise, the Group considers other factors including historical lease durations and the costs and
business disruption required to replace the leased asset.
As for the land leases historical lease durations were used in determining the terms of right-of-use assets
depreciation. Based on the management assessment and previous experience, lease term was set as
10 years as a minimum for the contracts with prolongation option.
Discount rates used for determination of lease liabilities
The Group uses its incremental borrowing rate as a base for calculation of the discount rate because the
interest rate implicit in the lease cannot be readily determined. The Group’s incremental borrowing rate is
the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value
to the right-of-use asset in a similar economic environment with similar terms, collateral and conditions.
10% increase in discount rate at 31 December 2021 would result in a decrease in lease liabilities of
RR 271,024 (31 December 2020: RR 253,307). 10% decrease in discount rate at 31 December 2021 would
result in an increase in lease liabilities of RR 299,321 (31 December 2020: RR 283,833).
2.3 Foreign currency and translation methodology
Functional and presentation currency
The functional currency of the Group’s consolidated entities is the Russian Rouble (RR), which is
the currency of the primary economic environment in which the Group operates. The Russian Rouble has
been chosen as the presentation currency for these consolidated financial statements.
Translation of foreign currency items into functional currency
Transactions in foreign currencies are translated to Russian Roubles at the official exchange rate
of the Central Bank of the Russian Federation (CBRF) at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into
the functional currency at the exchange rate ruling at that date. Foreign exchange gains and losses resulting
from the settlement of the transactions and from the translation of monetary assets and liabilities at year-
end exchange rates are recognised in profit or loss.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented
in the consolidated statement of profit or loss and other comprehensive income within ‘finance income or
costs’. All other foreign exchange gains and losses are presented in the consolidated statement of profit or
loss and other comprehensive income within ‘Other operating income/(expenses), net’. Translation at year-
end rates does not apply to non-monetary items that are measured at historical cost. Non-monetary items
measured at fair value in a foreign currency, including equity investments, are translated using the
exchange rates at the date when the fair value was determined. Effects of exchange rate changes on non-
monetary items measured at fair value in a foreign currency are recorded as part of the fair value gain or
loss.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.4 Group accounting
Consolidation
Subsidiaries are those investees, including structured entities, that the Group controls because the Group
(i) has power to direct relevant activities of the investees that significantly affect their returns, (ii) has
exposure, or rights, to variable returns from its involvement with the investees, and (iii) has the ability to
use its power over the investees to affect the amount of investor’s returns. The existence and effect of
substantive rights, including substantive potential voting rights, are considered when assessing whether
the Group has power over another entity. For a right to be substantive, the holder must have practical ability
to exercise that right when decisions about the direction of the relevant activities of the investee need to be
made. The Group may have power over an investee even when it holds less than majority of voting power
in an investee. In such a case, the Group assesses the size of its voting rights relative to the size
and dispersion of holdings of the other vote holders to determine if it has de-facto power over the investee.
Protective rights of other investors, such as those that relate to fundamental changes of investee’s activities
or apply only in exceptional circumstances, do not prevent the Group from controlling an investee.
Subsidiaries are consolidated from the date on which control is transferred to the Group (acquisition date)
and are deconsolidated from the date on which control ceases.
The acquisition method of accounting is used to account for the acquisition of subsidiaries other than those
acquired from parties under common control. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured at their fair values at the acquisition date,
irrespective of the extent of any non-controlling interest. The Group measures non-controlling interest on a
transaction by transaction basis, either at: (a) fair value, or (b) the non-controlling interest's proportionate
share of net assets of the acquiree.
Goodwill is measured by deducting the fair value of net assets of the acquiree from the aggregate
of the fair value of the consideration transferred for the acquiree, the amount of non-controlling interest
in the acquiree and fair value of an interest in the acquiree held immediately before the acquisition date.
Any negative amount (“negative goodwill, bargain purchase”) is recognised in profit or loss, after
management reassesses whether it identified all the assets acquired and all liabilities and contingent
liabilities assumed and reviews appropriateness of their measurement. The consideration transferred for
the acquiree is measured at the fair value of the assets given up, equity instruments issued and liabilities
incurred or assumed, including fair value of assets or liabilities from contingent consideration arrangements
but excludes acquisition related costs such as advisory, legal, valuation and similar professional services.
Transaction costs related to the acquisition and incurred for issuing equity instruments are deducted from
equity; transaction costs incurred for issuing debt as part of the business combination are deducted from
the carrying amount of the debt and all other transaction costs associated with the acquisition are expensed.
Intercompany transactions, balances and unrealised gains on transactions between group companies are
eliminated; unrealised losses are also eliminated unless the cost cannot be recovered. The Company
and all of its subsidiaries use uniform accounting policies consistent with the Group’s policies.
Non-controlling interest is that part of the net results and of the equity of a subsidiary attributable to interests
which are not owned, directly or indirectly, by the Company. Non-controlling interest forms a separate
component of the Group’s equity.
Associates
Associates are entities over which the Group has significant influence (directly or indirectly), but not control,
generally accompanying a shareholding of between 20 and 50 percent of the voting rights. Investments in
associates are accounted for using the equity method of accounting and are initially recognised at cost,
and the carrying amount is increased or decreased to recognise the investor’s share of changes in net
asset of investee after the date of acquisition. Dividends received from associates reduce the carrying value
of the investment in associates. Other post-acquisition changes in the Group’s share of net assets of an
associate are recognised as follows: (i) the Group’s share of profits or losses of associates is recorded
154
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APPENDIX
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ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.4 Group accounting (continued)
in the consolidated profit or loss for the year as the share of results of associates, (ii) the Group’s share of
other comprehensive income is recognised in other comprehensive income and presented separately,
(iii) all other changes in the Group’s share of the carrying value of net assets of associates are recognised
in profit or loss within the share of results of associates.
However, when the Group’s share of losses in an associate is equal or exceeds its interest in the associate,
including any other unsecured receivables, the Group does not recognise further losses, unless it has
incurred obligations or made payments on behalf of the associate.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent
of the Group’s interest in the associates; unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred.
Purchases of non-controlling interest
The Group applies the economic entity model to account for transactions with owners of non-controlling
interest. The difference, if any, between the carrying amount of a non-controlling interest acquired and the
purchase consideration is recorded as capital transaction in the consolidated statements of changes in equity.
Purchases of subsidiaries from parties under common control
Business combinations involving entities under common control (ultimately controlled by the same party,
before and after the business combination, and that control is not transitory) are accounted for using
the predecessor basis of accounting. Under this method the consolidated financial statements
of the acquiree are included in the consolidated financial statements from the beginning of the earliest
period presented or, if later, the date when common control was established. The assets and liabilities of
the subsidiary transferred under common control are accounted for at the predecessor entity’s IFRS
carrying amounts using uniform accounting policies on the assumption that the Group was in existence
from the date when common control was established. Any difference between the carrying amount of net
assets, including the predecessor entity's goodwill, and the consideration for the acquisition is accounted
for in these consolidated financial statements as an adjustment to retained earnings within equity.
Disposals of subsidiaries and associates
When the Group ceases to have control or significant influence, any retained interest in the entity is
remeasured to its fair value at the date when control is lost, with the change in carrying amount recognised
in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for
the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously
recognised in other comprehensive income in respect of that entity, are accounted for as if the Group had
directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in
other comprehensive income are reclassified to profit or loss.
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate
share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss
where appropriate.
2.5 Property, plant and equipment
Property, plant and equipment are carried at cost less accumulated depreciation and provision for
impairment, if any.
Assets under construction are accounted for at purchase cost less provision for impairment, if required.
Costs of minor repairs and maintenance are expensed when incurred. Cost of replacing a major part or
component of property, plant and equipment items is capitalized and the replaced part is retired.
Upon sale or retirement, the cost and related accumulated depreciation are eliminated from the
consolidated financial statements. Gains and losses on disposals are determined by comparing proceeds
with the carrying amount and are included in operating profit or loss for the year within other operating
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.5 Property, plant and equipment (continued)
income and expenses.
2.6 Depreciation
Depreciation on property, plant and equipment other than land and assets under construction is calculated
using the straight-line method to allocate their cost to the residual values over their estimated useful lives:
Asset category
Useful life, years
Buildings
15
-
50
Constructions
5
-
50
Machinery, vehicles and equipment
2
-
20
Other
4
-
6
Assets are depreciated on a straight-line basis from the month following the date they are ready for use.
The residual value of an asset is the estimated amount that the Group would currently obtain
from disposal of the asset less the estimated costs of disposal, if the asset were already of the age and in
the condition expected at the end of its useful life. The residual value of an asset is nil if the Group expects
to use the asset until the end of its physical life. The assets’ residual values and useful lives are reviewed,
and adjusted if appropriate, at each reporting date.
2.7 Biological assets and agricultural produce
Biological assets of the Group consist of unharvested crops (grain crops, sugar beets and other plant crops)
and pigs livestock.
Livestock is measured at their fair value less estimated point-of-sale costs. Fair value at initial recognition
is assumed to be approximated by the purchase price incurred. Point-of-sale costs include all costs that
would be necessary to sell the assets. All the gains or losses arising from initial recognition of biological
assets and from changes in fair-value-less-cost-to-sell of biological assets less the amounts of these gains
or losses related to the realised biological assets are included in a separate line “Net gain/ (loss)
on revaluation of biological assets and agricultural produce” above the gross profit line.
At the year-end unharvested crops are measured at fair value less estimated point-of-sale costs. A gain
or loss from the changes in the fair value less estimated point-of-sale costs of unharvested crops less the
amount of such gain or loss related to the realisation of agricultural products is included as a separate line
“Net gain/ (loss) on revaluation of biological assets and agricultural produce" above the gross profit line.
Upon harvest, grain crops, sugar beets and other plant crops are included into inventory for further
processing or for sale and are initially measured at their fair value less estimated point-of-sale costs at the
time of harvesting. A gain or loss arising on initial recognition of agricultural produce at fair value less
estimated point-of-sale costs of unharvested crops less the amount of such gain or loss related to the
realisation of agricultural products is recognised in profit or loss in the period in which it arises.
Bearer livestock is classified as non-current assets; consumable livestock and unharvested crops are
classified as current assets in the consolidated statement of financial position.
2.8 Goodwill
Goodwill on acquisitions of subsidiaries is presented separately in the consolidated statement of financial
position. Goodwill is carried at cost less accumulated impairment losses, if any. The Group tests goodwill
for impairment at least annually and whenever there are indications that goodwill may be impaired. Goodwill
is allocated to the cash-generating units, or groups of cash-generating units, that are expected to benefit
from the synergies of the business combination. Such units or groups of units represent the lowest level at
which the Group monitors goodwill and are not larger than an operating segment. Gains or losses on
disposal of an operation within a cash-generating unit to which goodwill has been allocated include the
carrying amount of goodwill associated with the operation disposed of, generally measured on the basis of
the relative values of the operation disposed of and the portion of the cash-generating unit which is retained.
155
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APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.9 Intangible assets
The Group’s intangible assets other than goodwill have definite useful lives and primarily include capitalised
computer software, patents, trademarks and licences. Acquired computer software licences, patents and
trademarks are capitalised on the basis of the costs incurred to acquire and bring them to use.
Intangible assets are amortised using the straight-line method over their useful lives:
Asset category
Useful life, years
Trademarks 5-12
Software licences 1-3
Capitalised internal software development costs 3-5
Other licences 1-3
If impaired, the carrying amount of intangible assets is written down to the higher of value in use and fair
value less costs to sell.
2.10 Impairment of non-current assets
The Group’s non-current assets except for deferred income tax, biological assets and financial assets are
tested for impairment in accordance with the provisions of IAS 36, Impairment of Assets. The Group makes
an assessment whether there is any indication that an asset may be impaired at each reporting date, except
for goodwill which is tested at least annually regardless of whether there are any indications
of impairment. If any such indication exists, an estimate of the recoverable amount of the asset is made.
IAS 36 requires an impairment loss to be recognised whenever the carrying amount of an asset exceeds
its recoverable amount. The recoverable amount of an asset is the higher of the asset’s fair value less costs
to sell and its value in use. Value in use is the present value of estimated future cash flows expected to
arise from the continuing use of an asset and from its disposal at the end of its life.
2.11 Financial instruments
Financial instruments – key measurement terms
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The best evidence of fair value is the
price in an active market. An active market is one in which transactions for the asset or liability take place
with sufficient frequency and volume to provide pricing information on an ongoing basis.
Fair value of financial instruments traded in an active market is measured as the product of the quoted price
for the individual asset or liability and the number of instruments held by the entity. This is the case even if
a market’s normal daily trading volume is not sufficient to absorb the quantity held and placing orders to
sell the position in a single transaction might affect the quoted price.
Valuation techniques such as discounted cash flow models or models based on recent arm’s length
transactions or consideration of financial data of the investees are used to measure fair value of certain
financial instruments for which external market pricing information is not available. Fair value
measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements
at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements
are valuations techniques with all material inputs observable for the asset or liability, either directly (that is,
as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not
based on solely observable market data (that is, the measurement requires significant unobservable
inputs). Transfers between levels of the fair value hierarchy are deemed to have occurred at the end of the
reporting period.
Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of
a financial instrument. An incremental cost is one that would not have been incurred if the transaction had
not taken place. Transaction costs include fees and commissions paid to agents (including employees
acting as selling agents), advisors, brokers and dealers, levies by regulatory agencies and securities
exchanges, and transfer taxes and duties. Transaction costs do not include debt premiums or discounts,
financing costs or internal administrative or holding costs.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.11 Financial instruments (continued)
Amortised cost (“AC”) is the amount at which the financial instrument was recognised at initial recognition
less any principal repayments, plus accrued interest, and for financial assets less any allowance for
expected credit losses (“ECL”). Accrued interest includes amortisation of transaction costs deferred at initial
recognition and of any premium or discount to the maturity amount using the effective interest method.
Accrued interest income and accrued interest expense, including both accrued coupon and amortised
discount or premium (including fees deferred at origination, if any), are not presented separately and are
included in the carrying values of the related items in the consolidated statement of financial position.
The effective interest method is a method of allocating interest income or interest expense over the relevant
period, so as to achieve a constant periodic rate of interest (effective interest rate) on the carrying amount.
The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts
(excluding future credit losses) through the expected life of the financial instrument or a shorter period, if
appropriate, to the gross carrying amount of the financial instrument. The effective interest rate discounts
cash flows of variable interest instruments to the next interest repricing date, except for the premium or
discount which reflects the credit spread over the floating rate specified in the instrument, or other variables
that are not reset to market rates. Such premiums or discounts are amortised over the whole expected life
of the instrument. The present value calculation includes all fees paid or received between parties to the
contract that are an integral part of the effective interest rate. For assets that are purchased or originated
credit impaired (“POCI”) at initial recognition, the effective interest rate is adjusted for credit risk, i.e. it is
calculated based on the expected cash flows on initial recognition instead of contractual payments.
Initial recognition and measurement of financial instruments
A financial instrument is recognised when the Group becomes a party to the contractual provisions
of the instrument. The Group’s financial assets and liabilities are initially recorded at fair value. Fair value
at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only
recorded if there is a difference between fair value and transaction price which can be evidenced by other
observable current market transactions in the same instrument or by a valuation technique whose inputs
include only data from observable markets. After the initial recognition, an expected credit loss allowance
is recognised for financial assets measured at amortised cost, resulting in an immediate accounting loss.
All purchases and sales of financial assets that require delivery within the time frame established by
regulation or market convention (“regular way” purchases and sales) are recorded at trade date, which is
the date on which the Group commits to deliver a financial asset. All other purchases are recognised when
the Group becomes a party to the contractual provisions of the instrument.
Financial assets – classification and subsequent measurement – measurement categories
The Group classifies financial assets in the following measurement categories: fair value through profit and
loss, fair value through other comprehensive income and amortised cost. The classification and subsequent
measurement of debt financial assets depends on: (i) the Group’s business model for managing the related
assets portfolio and (ii) the cash flow characteristics of the asset. Equity investments at fair value through
other comprehensive income are subsequently measured at fair value. Dividends are recognised as income
in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other
net gains and losses are recognised in other comprehensive income and are never reclassified to profit or
loss.
Financial assets – classification and subsequent measurement – business model
The business model reflects how the Group manages the assets in order to generate cash flows – whether
the Group’s objective is: (i) solely to collect the contractual cash flows from the assets (“hold to collect
contractual cash flows”,) or (ii) to collect both the contractual cash flows and the cash flows arising from the
sale of assets (“hold to collect contractual cash flows and sell”) or, if neither of (i) and (ii) is applicable, the
financial assets are classified as part of “other” business model and measured at fair value through profit
and loss.
Business model is determined for a group of assets (on a portfolio level) based on all relevant evidence
about the activities that the Group undertakes to achieve the objective set out for the portfolio available at
the date of the assessment. Factors considered by the Group in determining the business model include
the purpose and composition of a portfolio, past experience on how the cash flows for the respective assets
were collected, how risks are assessed and managed, how the assets’ performance is assessed and how
managers are compensated.
156
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APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.11 Financial instruments (continued)
Financial assets – classification and subsequent measurement – cash flow characteristics
Where the business model is to hold assets to collect contractual cash flows or to hold contractual cash
flows and sell, the Group assesses whether the cash flows represent solely payments of principal and
interest (SPPI). Financial assets with embedded derivatives are considered in their entirety when
determining whether their cash flows are consistent with the SPPI feature. In making this assessment, the
Group considers whether the contractual cash flows are consistent with a basic lending arrangement, i.e.
interest includes only consideration for credit risk, time value of money, other basic lending risks and profit
margin.
Where the contractual terms introduce exposure to risk or volatility that is inconsistent with a basic lending
arrangement, the financial asset is classified and measured at fair value through profit and loss. The SPPI
assessment is performed on initial recognition of an asset and it is not subsequently reassessed.
All financial instruments except those that are measured at fair value meet the SPPI criteria and are
recognised at amortised cost. The Group has some instruments that meet SPPI and are held for trading
and to collect,those that are recognised at fair value through profit and loss and at fair value through other
comprehensive income.
Financial assets – reclassification
Financial instruments are reclassified only when the business model for managing the portfolio as a whole
changes. The reclassification has a prospective effect and takes place from the beginning of the first
reporting period that follows after the change in the business model.
Financial assets impairment – credit loss allowance for expected credit loss
The Group assesses, on a forward-looking basis, the expected credit loss for debt instruments measured
at amortised cost and fair value through other comprehensive income and for the exposures arising from
loan commitments and financial guarantee contracts, for contract assets. The Group measures expected
credit loss and recognises Net impairment losses on financial and contract assets at each reporting date.
The measurement of expected credit loss reflects: (i) an unbiased and probability weighted amount that is
determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and
supportable information that is available without undue cost and effort at the end of each reporting period
about past events, current conditions and forecasts of future conditions.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.11 Financial instruments (continued)
Debt instruments measured at amortised cost and contract assets are presented in the consolidated
statement of financial position net of the allowance for expected credit loss. For loan commitments and
financial guarantees, a separate provision for expected credit loss is recognised as a liability in the
consolidated statement of financial position. For debt instruments at fair value through other comprehensive
income, changes in amortised cost, net of allowance for expected credit loss, are recognised in profit or
loss and other changes in carrying value are recognised in other comprehensive income as gains less
losses on debt instruments at fair value through other comprehensive income.
The Group applies a three-stage model for impairment, based on changes in credit quality since initial
recognition. A financial instrument that is not credit-impaired on initial recognition is classified in Stage 1.
Financial assets in Stage 1 have their expected credit loss measured at an amount equal to the portion of
lifetime expected credit loss that results from default events possible within the next 12 months or until
contractual maturity, if shorter. If the Group identifies a significant increase in credit risk since initial
recognition, the asset is transferred to Stage 2 and its expected credit loss is measured based on expected
credit loss on a lifetime basis, that is, up until contractual maturity but considering expected prepayments,
if any. Refer to Note 30 for a description of how the Group determines when a significant increase in credit
risk has occurred. If the Group determines that a financial asset is credit-impaired, the asset is transferred
to Stage 3 and its expected credit loss is measured as a Lifetime expected credit loss. The Group’s
definition of credit impaired assets and definition of default is explained in Note 30. For financial assets that
are purchased or originated credit-impaired, the expected credit loss is always measured as a Lifetime
expected credit loss. Note 30 provides information about inputs, assumptions and estimation techniques
used in measuring expected credit loss, including an explanation of how the Group incorporates forward-
looking information in the expected credit loss models.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a
lifetime expected loss allowance for all trade and other receivables.
To measure the expected credit losses, trade and other receivables have been grouped based on shared
credit risk characteristics and the days past due.
The expected loss rates are based on the payment profiles of sales over a period of 36 month before each
balance sheet date and the corresponding historical credit losses experienced within this period. The
historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic
factors affecting the ability of the customers to settle the receivables. The Group has identified the GDP
and the unemployment rate of the countries in which it sells its goods and services to be the most relevant
factors, and accordingly adjusts the historical loss rates based on expected changes in these factors.
Financial assets – write-off. Financial assets are written-off, in whole or in part, when the Group
exhausted all practical recovery efforts and has concluded that there is no reasonable expectation of
recovery. The write-off represents a derecognition event. The Group may write-off financial assets that are
still subject to enforcement activity when the Group seeks to recover amounts that are contractually due,
however, there is no reasonable expectation of recovery.
Financial assets – derecognition
The Group derecognises financial assets when (a) the assets are redeemed or the rights to cash flows from
the assets otherwise expire or (b) the Group has transferred the rights to the cash flows from the financial
assets or entered into a qualifying pass-through arrangement whilst (i) also transferring substantially all the
risks and rewards of ownership of the assets or (ii) neither transferring nor retaining substantially all the
risks and rewards of ownership but not retaining control.
Control is retained if the counterparty does not have the practical ability to sell the asset in its entirety to
an unrelated third party without needing to impose additional restrictions on the sale.
157
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APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.11 Financial instruments (continued)
Financial assets – modification. The Group sometimes renegotiates or otherwise modifies the contractual
terms of the financial assets. The Group assesses whether the modification of contractual cash flows is
substantial considering, among other, the following factors: any new contractual terms that substantially
affect the risk profile of the asset, significant change in interest rate, change in the currency denomination,
new collateral or credit enhancement that significantly affects the credit risk associated with the asset or a
significant extension of a loan when the borrower is not in financial difficulties.
If the modified terms are substantially different, the rights to cash flows from the original asset expire and
the Group derecognises the original financial asset and recognises a new asset at its fair value. The date
of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation
purposes, including determining whether a SICR has occurred. The Group also assesses whether the new
loan or debt instrument meets the SPPI criterion. Any difference between the carrying amount of the original
asset derecognised and fair value of the new substantially modified asset is recognised in profit or loss,
unless the substance of the difference is attributed to a capital transaction with owners.
In a situation where the renegotiation was driven by financial difficulties of the counterparty and inability to
make the originally agreed payments, the Group compares the original and revised expected cash flows to
assets whether the risks and rewards of the asset are substantially different as a result of the contractual
modification. If the risks and rewards do not change, the modified asset is not substantially different from
the original asset and the modification does not result in derecognition. The Group recalculates the gross
carrying amount by discounting the modified contractual cash flows by the original effective interest rate (or
credit-adjusted effective interest rate for POCI financial assets), and recognises a modification gain or loss
in profit or loss.
Financial liabilities – measurement categories
Financial liabilities are classified as subsequently measured at amortised cost, except for (i) financial
liabilities at fair value through profit and loss: this classification is applied to derivatives, financial liabilities
held for trading (e.g. short positions in securities), contingent consideration recognised by an acquirer in a
business combination and other financial liabilities designated as such at initial recognition and (ii) financial
guarantee contracts and loan commitments.
Financial liabilities designated at fair value through profit and loss
The Group may designate certain liabilities at fair value through profit and loss at initial recognition. Gains
and losses on such liabilities are presented in profit or loss except for the amount of change in the fair value
that is attributable to changes in the credit risk of that liability (determined as the amount that is not
attributable to changes in market conditions that give rise to market risk), which is recorded in other
comprehensive income and is not subsequently reclassified to profit or loss. This is unless such a
presentation would create, or enlarge, an accounting mismatch, in which case the gains and losses
attributable to changes in credit risk of the liability are also presented in profit or loss.
Financial liabilities – derecognition
Financial liabilities are derecognised when they are extinguished (i.e. when the obligation specified in the
contract is discharged, cancelled or expires).
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the consolidated statements of
financial position only when there is a legally enforceable right to offset the recognised amounts, and there
is an intention to either settle on a net basis, or to realise the asset and settle the liability simultaneously.
Such a right of set off (a) must not be contingent on a future event and (b) must be legally enforceable in
all of the following circumstances: (i) in the normal course of business, (ii) in the event of default and (iii) in
the event of insolvency or bankruptcy. There were no offsets of financial assets and liabilities as at
31 December 2021.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.11 Financial instruments (continued)
Presentation of results from sugar trading derivatives
The Group was engaged in raw sugar derivative trading transactions through an agent on ICE Futures US
primarily in order to manage the raw sugar purchase price risk (Note 30). As such transactions are directly
related to the core activity of the Group, their results are presented above gross profit as 'Net gain from
trading derivatives' in the consolidated statement of profit or loss and other comprehensive income.
Management believes that the presentation above gross profit line appropriately reflects the nature of
derivative operations of the Group.
2.12 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, cash held on demand with banks, bank deposits with
original maturity of less than three months, other short-term highly liquid investments with original maturities
of three months or less. Cash and cash equivalents are carried at amortised cost because: (i) they are held
for collection of contractual cash flows and those cash flows represent SPPI, and (ii) they are not designated
at fair value through profit and loss. Features mandated solely by legislation, such as the bail-in legislation
in certain countries, do not have an impact on the SPPI test, unless they are included in contractual terms
such that the feature would apply even if the legislation is subsequently changed.
Restricted balances are excluded from cash and cash equivalents for the purposes of the consolidated
statement of cash flows. Balances restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period are included in non-current assets.
2.13 Investments
Bank deposits with original maturities of more than three months and less than twelve months are classified
as short-term investments and are carried at amortised cost using the effective interest method.
Bank deposits with original maturity of more than twelve months are classified as long-term and are carried
at amortised cost.
Bond held for trading are securities which are acquired solely to generate a profit from short-term
fluctuations in price or trader’s margin or are included in a portfolio in which a pattern of short-term trading
exists. These financial assets are classified as part of “other” business model and measured at fair value
through profit and loss. Business model is determined for a group of assets (on a portfolio level) based on
all relevant evidence about the activities that the Group undertakes to achieve the objective set out for the
portfolio available at the date of the assessment. Factors considered by the Group in determining the
business model include the purpose and composition of a portfolio, past experience on how the cash flows
for the respective assets were collected, how risks are assessed and managed, how the assets’
performance is assessed and how managers are compensated.
2.14 Prepayments
Prepayments classified as current assets represent advance payments to suppliers for goods and services.
Prepayments for construction or acquisition of property, plant and equipment and prepayments for
intangible assets are classified as non-current assets. Prepayments are carried at cost less provisions for
impairment, if any. If there is an indication that the assets, goods or services relating to a prepayment will
not be received, the carrying value of the prepayment is written down accordingly and a corresponding
impairment loss is recognised in profit or loss for the year.
2.15 Inventories
Inventories are stated at the lower of cost or net realisable value. Cost is determined on the weighted
average basis. The cost of finished goods and work in progress comprises raw materials, direct labour,
other direct costs and related production overheads (based on normal operating capacity) but excludes
borrowing costs. Net realisable value is the estimated selling price in the ordinary course of business, less
selling expenses.
158
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APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.15 Inventories (continued)
Raw materials intended for the operating activities of the Group, finished goods and work in progress are
classified as current assets. Materials intended for construction are classified as non-current assets as
“Inventories intended for construction”.
2.16 Borrowings
Borrowings are recognised initially at their fair value, net of transaction costs incurred. In subsequent
periods, borrowings are stated at amortised cost using the effective interest method; any difference
between the amount at initial recognition and the redemption amount is recognised as interest expense
over the period of the borrowings.
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily
take a substantial time to get ready for intended use or sale (qualifying assets) are capitalised as part of
the costs of those assets.
Capitalisation of borrowing costs continues up to the date when the assets are substantially ready
for their use or sale.
The Group capitalises borrowing costs that could have been avoided if it had not made capital expenditure
on qualifying assets. Borrowing costs capitalised are calculated at the Group’s average funding cost (the
weighted average interest cost is applied to the expenditures on the qualifying assets), except to the extent
that funds are borrowed specifically for the purpose of obtaining a qualifying asset. Where this occurs,
actual borrowing costs incurred less any investment income on the temporary investment of those
borrowings are capitalised.
2.17 Trade and other payables
Trade and other payables are recognised when the counterparty has performed its obligations under
the contract, and are carried at amortised cost using the effective interest method.
2.18 Value added tax
Output value added tax related to sales is payable to tax authorities on the earlier of (a) collection of the
receivables from customers or (b) delivery of the goods or services to customers. Input VAT is generally
recoverable against output VAT upon receipt of the VAT invoice. The tax authorities permit the settlement
of VAT on a net basis. VAT related to purchases where all the specified conditions for recovery have not
been met yet is recognised in the consolidated statements of financial position and disclosed separately
within other taxes receivable, while input VAT that has been claimed is netted off with the output VAT
payable. Where provision has been made for impairment of receivables, impairment loss is recorded for
the gross amount of the debtor, including VAT.
2.19 Other taxes payable
Other taxes payable comprises liabilities for taxes other than on income outstanding at the reporting date,
accrued in accordance with legislation enacted or substantively enacted by the end of the reporting period.
2.20 Income tax
Income taxes have been provided for in the consolidated financial statements in accordance with legislation
enacted or substantively enacted by the end of the reporting period. The income tax charge or credit
comprises current tax and deferred income tax and is recognised in profit or loss for the year.
Current tax
Current tax is the amount expected to be paid to or recovered from the taxation authorities in respect
of taxable profits or losses for the current and prior periods.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.20 Income tax (continued)
Deferred income tax
Deferred income tax is provided in full, using the balance sheet liability method, on tax losses carry forward
and temporary differences arising between the tax bases of assets and liabilities and their carrying amounts
in the consolidated financial statements. In accordance with the initial recognition exemption, deferred
income taxes are not recorded for temporary differences on initial recognition of an asset or a liability in a
transaction other than a business combination if the transaction, when initially recorded, affects neither
accounting nor taxable profit. Deferred income tax balances are measured at tax rates enacted or
substantively enacted at the end of the reporting period, which are expected to apply to the period when
the temporary differences will reverse or the tax loss carry forwards will be utilised.
Deferred income tax assets for deductible temporary differences and tax loss carry forwards are recorded
only to the extent that it is probable that the temporary difference will reverse in the future and there is
sufficient future taxable profit available against which the deductions can be utilised.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries
and associates, except where the timing of the reversal of the temporary difference is controlled by
the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to
income taxes levied by the same taxation authority on either the same taxable entity or different taxable
entities where there is an intention to settle the balances on a net basis. Deferred income tax assets and
liabilities are netted only within the individual companies of the Group.
The Group's uncertain tax positions are reassessed by management at the end of each reporting period.
Liabilities are recorded for income tax positions that are determined by management as more likely than
not to result in additional taxes being levied if the positions were to be challenged by the tax authorities.
The assessment is based on the interpretation of tax laws that have been enacted or substantively enacted
by the end of the reporting period and any known court or other rulings on such issues. Liabilities for
penalties, interest and taxes other than on income are recognised based on management’s best estimate
of the expenditure required to settle the obligations at the end of the reporting period.
2.21 Employee benefits
Payroll costs and related contributions
Wages, salaries, contributions to the Russian Federation state pension and social insurance funds, paid
annual leave and sick leave, bonuses, and non-monetary benefits are accrued in the year, in which
the associated services are rendered by the employees of the Group.
Pension costs
The Group contributes to the Russian Federation state pension fund on behalf of its employees and has no
obligation beyond the payments made. The contribution was approximately 21.1% (2020: 21.2%) of the
employees’ gross pay and is expensed in the same period as the related salaries and wages.
The Group does not have any other legal or constructive obligation to make pension or other similar benefit
payments to its employees.
Share-based payment transactions
The Group accounts for share-based compensation in accordance with IFRS 2, Share-based Payment.
The fair value of the employee services received in exchange for the grant of the equity instruments is
recognized as an expense. The total amount to be expensed over the vesting period is determined
by reference to the fair value of the instruments granted measured at the grant date. For share-based
compensation made to employees by shareholders, an increase to share-based payment reserve in equity
is recorded equal to the associated compensation expense each period.
159
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.22 Provisions for liabilities and charges
Provisions for liabilities and charges are non-financial liabilities of uncertain timing or amount. They are
accrued when the Group has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation,
and a reliable estimate of the amount of the obligation can be made. Provisions are measured at the present
value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the obligation. The increase
in the provision due to the passage of time is recognised as an interest expense within finance costs. Where
the Group expects a provision to be reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain.
2.23 Revenue recognition
Revenue is income arising in the course of the Group’s ordinary activities. Revenue is recognised in the
amount of transaction price. Transaction price is the amount of consideration to which the Group expects
to be entitled in exchange for transferring control over promised goods or services to a customer, excluding
the amounts collected on behalf of third parties. Revenue is recognised net of discounts and value added
taxes.
Sales of goods. Sales are recognised when control of the good has transferred, being when the goods are
delivered to the customer, the customer has full discretion over the goods, and there is no unfulfilled
obligation that could affect the customer’s acceptance of the goods. Delivery occurs when the goods have
been shipped to the specific location, the risks of obsolescence and loss have been transferred to the
customer, and either the customer has accepted the goods in accordance with the contract, the acceptance
provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been
satisfied.
Revenue from the sales with discounts is recognised based on the price specified in the contract, net of the
estimated discounts. Accumulated experience is used to estimate and provide for the discounts, using the
expected value method, and revenue is only recognised to the extent that it is highly probable that a
significant reversal will not occur.
A receivable is recognised when the goods are delivered as this is the point in time that the consideration
is unconditional because only the passage of time is required before the payment is due.
If the Group provides any additional services to the customer after control over goods has passed, revenue
from such services is considered to be a separate performance obligation and is recognised over the time
of the service rendering.
Contract assets and liabilities are not separately presented in the consolidated statement of financial
position as they are not material.
Commodity loans. The Group provides and obtains commodity loans from other grain traders at the point
of transhipment by entering into sales and purchase agreements. Commodity loans are usually returned
within several months by reverse transactions between the same parties on identical terms.
These transactions are in substance commodity loans, rather than sale and purchase transactions.
Therefore, revenue and cost of sales attributable to these transactions are eliminated from the consolidated
statement of profit or loss and other comprehensive income.
No commodity loans were obtained/provided in 2021.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.23 Revenue recognition (continued)
Sales of transportation services.
Revenue from providing transportation services is recognised in the accounting period in which these
services are rendered. For fixed-price contracts, revenue is recognised based on the actual service
provided to the end of the reporting period as a proportion of the total services to be provided because the
customer receives and uses the benefits simultaneously.
Where the contracts include multiple performance obligations, the transaction price is allocated to each
separate performance obligation based on the stand-alone selling prices. Where these are not directly
observable, they are estimated based on expected cost-plus margin.
Interest income. Interest income is recorded for all debt instruments, other than those at fair value through
profit and loss on an accrual basis using the effective interest method. This method defers, as part of
interest income, all fee received between the parties to the contract that are an integral part of the effective
interest rate. Interest income on debt instruments at fair value through profit and loss calculated at nominal
interest rate is presented within ‘finance income’ line in profit or loss.
2.24 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided
to the Group’s chief operating decision maker. Segments whose revenue, result or assets are ten percent
or more of all the segments are reported separately.
2.25 Government grants
Government grants comprise compensation of interest expense under bank loans and government grants
relating to costs and property, plant and equipment.
Government grants relating to property, plant and equipment are included in non-current liabilities
as deferred government grants and are credited to profit or loss on a straight-line basis over the expected
lives of the related assets. Government grants relating to costs are deferred and recognised in profit
or loss as other operating income over the period necessary to match them with the costs that they are
intended to compensate.
Compensation of interest expense under bank loans is credited to profit or loss over the periods
of the related interest expense unless this interest was capitalised into the carrying value of assets
in which case it is included in non-current liabilities as government grants and credited to profit or loss
on a straight-line basis over the expected lives of the related assets.
The benefit of a government loan at a below-market rate of interest is treated as a government grant.
The loan is recognised and measured in accordance with IFRS 9 Financial Instruments: Recognition
and Measurement. The benefit of the below-market rate of interest is measured as the difference between
the initial carrying value of the loan determined in accordance with IFRS 9 and the proceeds received.
The differences between nominal and market interest rate is recognized as interest expenses and
government grants in the consolidated statement of profit or loss and other comprehensive income or in
the consolidated statement of financial position.
Government grants are recognized at their fair value when there is reasonable assurance that the grant will
be received, and the Group will comply with all attached conditions.
Government grants cash inflows are presented in the financing activities section of the consolidated
statement of cash flows.
160
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.26 Dividends
Dividends are recorded as a liability and deducted from equity in the period in which they are declared and
approved, appropriately authorised and are no longer at the discretion of the Group. Any dividends declared
after the reporting period and before the consolidated financial statements are authorised for issue are
disclosed in the subsequent events note.
2.27 Share capital and share premium
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
are shown in equity as a deduction, net of tax, from the proceeds. Any excess of the fair value of
consideration receivable over the par value of shares issued is recorded as share premium in equity. Share
premium can only be resorted to for limited purposes, which do not include the distribution of dividends,
and is otherwise subject to the provisions of the Cyprus Companies Law on reduction of share capital.
2.28 Treasury shares
Where the Company or its subsidiaries purchase the Company’s equity instruments, the consideration paid,
including any directly attributable incremental costs, net of income taxes, is deducted from equity
attributable to the Company’s owners until the equity instruments are cancelled, reissued or disposed of.
Where such equity instruments are subsequently sold or reissued, any consideration received, net of any
directly attributable incremental transaction costs and the related income tax effects, is included in equity
attributable to the Company’s owners.
2.29 Amendments of the consolidated financial statements after issue
Any changes to these consolidated financial statements after issue require approval of the Group’s
management and the Board of Directors who authorised these consolidated financial statements for issue.
2.30 Right-of-use assets
The Group leases various land, buildings, machinery, equipment and vehicles. Assets arising from a lease
are initially measured on a present value basis.
Right-of-use assets are measured at cost comprising the following:
 the amount of the initial measurement of lease liability,
 any lease payments made at or before the commencement date less any lease incentives received,
 any initial direct costs.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term
on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use
asset is depreciated over the underlying assets’ useful lives. Useful lives of right-of-use of land is limited by
contract terms but are not less than 10 years for contracts with prolongation option (Note 12). Depreciation
on the items of the right-of-use assets is calculated using the straight-line method over their estimated
useful lives as follows:
Useful lives in years
Land 1 to 50
Buildings 1 to 20
Machinery and equipment 1 to 7
Vehicles 1 to 5
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.31 Lease liabilities
Liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the
net present value of the following lease payments:
 fixed payments (including in-substance fixed payments), less any lease incentives receivable,
 variable lease payment that are based on an index or a rate, initially measured using the index or
rate as at the commencement date,
 the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and
 payments of penalties for terminating the lease, if the lease term reflects the Group exercising that
option.
Extension and termination options are included in a number of land plots, buildings, machinery, equipment
and vehicles across the Group. These terms are used to maximise operational flexibility in terms of
managing the assets used in the Group’s operations. The majority of extension and termination options
held are exercisable only by the Group and not by the respective lessor. Extension options (or period after
termination options) are only included in the lease term if the lease is reasonably certain to be extended (or
not terminated). Lease payments to be made under reasonably certain extension options are also included
in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases of the Group, the Group’s incremental borrowing rate is used,
being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar
value to the right-of-use asset in a similar economic environment with similar terms, collateral and conditions.
To determine the incremental borrowing rate, the Group:
 where possible, uses recent third-party financing received by the individual lessee as a starting point,
adjusted to reflect changes in financing conditions since third party financing was received,
 makes adjustments specific to the lease, e.g. term, country, currency and collateral.
The Group is exposed to potential future increases in variable lease payments based on an index or rate,
which are not included in the lease liability until they take effect. When adjustments to lease payments
based on an index or rate take place, the lease liability is reassessed and adjusted against the right-of-use
asset.
Lease payments are allocated between principal and finance costs. The finance costs are charged to profit
or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance
of the liability for each period.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets
are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a
lease term of 12 months or less. Low-value assets comprise IT equipment and small items of office furniture
with value of RR 300 or less.
2.32 Adoption of new or revised standards and interpretations
During the current year the Group adopted all the new and revised International Financial Reporting
Standards (IFRS) that are relevant to its operations and are effective for accounting periods beginning on
1 January 2021.
161
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.32 Adoption of new or revised standards and interpretations (continued)
The following amended standard became effective from 1 January 2021, but did not have any material
impact on the Group:
The Group has initially adopted Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9,
IAS 39, IFRS 7, IFRS 4 and IFRS 16) from 1 January 2021.
The Group applied the Phase 2 amendments retrospectively. Since the Group had no transactions for which
the benchmark rate had been replaced with an alternative benchmark rate as at 31 December 2020, there
is no impact on opening equity balances as a result of retrospective application.
The following amended standard became effective from 1 April 2021, but did not have any material impact
on the Group:
The Group has adopted COVID-19-Related Rent Concessions beyond 30 June 2021 – Amendment to
IFRS 16 issued in March 2021. Prior to this amendment IFRS 16 introduced an optional practical expedient
with limited applicability period for leases in which the Group is a lessee – i.e. for leases to which the Group
applies the practical expedient, the Group is not required to assess whether eligible rent concessions that
are a direct consequence of the COVID-19 coronavirus pandemic are lease modifications. The amendment
in 2021 extended the availability of the practical expedient by one year. The Group has applied the
amendment retrospectively. The amendment has no impact on retained earnings at 1 January 2021
New standards and interpretations not yet adopted
A number of new standards are effective for annual periods beginning after 1 January 2021 and earlier
application is permitted; however, the Group has not early adopted the new or amended standards in
preparing these consolidated financial statements.
Onerous contracts – Cost of Fulfilling a Contract (Amendments to IAS 37)
The amendments specify which costs an entity includes in determining the cost of fulfilling a contract for
the purpose of assessing whether the contract is onerous. The amendments apply for annual reporting
periods beginning on or after 1 January 2022 to contracts existing at the date when the amendments are
first applied. At the date of initial application, the cumulative effect of applying the amendments is
recognised as an opening balance adjustment to retained earnings or other components of equity, as
appropriate. The comparatives are not restated. The Group has determined that there will be no
uncompleted contracts before the amendments become effective.
Deferred Income Tax related to Assets and Liabilities arising from a Single Transaction
(Amendments to IAS 12)
The amendments narrow the scope of the initial recognition exemption to exclude transactions that give
rise to equal and offsetting temporary differences – e.g. leases and decommissioning liabilities. The
amendments apply for annual reporting periods beginning on or after 1 January 2023. For leases and
decommissioning liabilities, the associated deferred income tax asset and liabilities will need to be
recognised from the beginning of the earliest comparative period presented, with any cumulative effect
recognised as an adjustment to retained earnings or other components of equity at that date. For all other
transactions, the amendments apply to transactions that occur after the beginning of the earliest period
presented.
The Group accounts for deferred income tax on leases applying the ‘integrally linked’ approach, resulting
in a similar outcome to the amendments, except that the deferred income tax impacts are presented net in
the consolidated statement of financial position. Under the amendments, the Group will recognise a
separate deferred income tax asset and a deferred income tax liability. As at 31 December 2021, the taxable
temporary difference in relation to the right-of-use asset is RR 7,346,538 (Note 12) and the deductible
temporary difference in relation to the lease liability is RR 6,665,845 (Note 12), resulting in a net deferred
income tax liability of RR 50,718 (Note 26). Under the amendments, the Group will present a separate
deferred income tax liability of RR 394,803 and a deferred income tax asset of RR 344,085. There will be
no impact on retained earnings on adoption of the amendments.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
2. Summary of significant accounting policies (continued)
2.32 Adoption of new or revised standards and interpretations (continued)
Other standards
The following new and amended standards are not expected to have a significant impact on the Group’s
consolidated financial statements.
— Annual Improvements to IFRS Standards 2018–2020.
— Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16).
— Reference to Conceptual Framework (Amendments to IFRS 3).
— Classification of Liabilities as Current or Non-current (Amendments to IAS 1).
— IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts.
— Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2).
— Definition of Accounting Estimates (Amendments to IAS 8).
The Group’s Board of Directors assesses the impact of new standards and interpretations at the point when
these are endorsed by the European Union. The new standards and interpretations are not expected to
affect significantly the Group’s consolidated financial statements.
3. Cash and cash equivalents
31 December 2021 31 December 2020
Bank balances receivable on demand 456,816 2,597,065
Cash in transit - 234,798
Bank deposits with original maturity of less than three months 46,004,535 9,034,370
Cash in hand 828 565
Total cash and cash equivalents 46,462,179 11,866,798
The Group had the following currency positions:
31 December 2021 31 December 2020
Russian Roubles
46,318,693
11,290,200
Euro 91,844 24,413
US Dollars 51,496 552,065
Other 146 120
Total 46,462,179 11,866,798
The weighted average interest rate on cash at bank balances in Russian Roubles presented within cash
and cash equivalents was 9.38% at 31 December 2021 (31 December 2020: 5.15%).
162
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
4. Short-term investments
31 December 202
1
31 December 20
20
Bank deposits with original maturity over three months 18,519,392 -
Loans issued to third parties (Note 15) 2,119,893 19,137,343
Interest receivable on long-term bonds held to collect (Note 10) 221,734 218,057
Bonds held to collect 140,741 197,523
Interest receivable on bonds held for trading (Note 10) - 7,908
Other short-term investments - 22,692
Total
21,001,760
19,583,523
As at 31 December 2021 the bank deposits within short-term investments are denominated in Russian
Roubles.
As at 31 December 2021 the interest rates on bank deposit denominated in Russian Roubles within
short-term investments vary between 6.5% and 7.75%. As at 31 December 2021 the weighted average
interest rate on the bank deposits equals 6.92%.
As at 31 December 2021, the Group has bonds held to collect. The table below shows the rating and
balances of bonds held to collect at 31 December 2021:
31 December
202
1
31 December
20
20
Rating agency
Rating
Balance
Rating
Balance
PJSC VTB Bank S&P bbb 25,308
PJSC Magnit S&P bb 136,662
PJSC MegaFon Fitch Ratings bb+ 35,553
PJSC Vimpelcom Fitch Ratings bbb-
140,741
- -
Total bonds to collect
140,741
197,523
5. Trade and other receivables
31 December 202
1
31 December 20
20
Trade receivables 12,294,677 8,508,956
Other 548,016 469,167
Less: credit loss allowance (Note 30) (842,375) (148,322)
Total financial assets within trade and other receivables
12,
000
,
318
8,829,801
Deferred charges 558,083 682,485
Total trade and other receivables
12
,
558
,
401
9,512,286
The above financial assets within trade and other receivables are denominated in the following currencies:
31 December 202
1
31 December 20
20
Russian Roubles 8,996,307 7,273,692
US dollars 2,717,063 1,501,230
Euro 286,948 54,879
Total
12,
000
,
318
8,829,801
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
5. Trade and other receivables (continued)
The credit loss allowance for trade and other receivables is determined according to the provision matrix
presented in the table below. The provision matrix is based the number of days that an asset is past due.
31 December 20
2
1
31 December
20
20
Loss
rate
Gross
carrying
amount
Lifetime
expected
credit loss
Gross
carrying
amount
Lifetime
expected
credit loss
Trade receivables
- current
- 10,009,400 6,656,734 -
- less than 90 days overdue 2% 1,054,217 24,000 685,795 22,742
- 91 to 180 days overdue 100% 31,516 31,516 1,553 1,553
- 181 to 360 days overdue 100% 12,834 12,834 27,592 27,592
- over 360 days overdue 100% 678,821 678,821 24,958 24,958
Total trade receivables (gross
carrying amount)
1
1
,
7
86
,
788
747,171
7,396,632
76,845
Credit loss allowance 747,171 76,845
Total trade receivables from contracts
with customers (carrying amount)
11,
0
39
,
617
7,319,787
Other receivables
- current - 452,811 - 387,983 -
- less than 90 days overdue 100% 59,245 59,244 35,612 25,905
- 91 to 180 days overdue 100% 919 919 5,729 5,729
- 181 to 360 days overdue 100% 4,263 4,263 5,039 5,039
- over 360 days overdue 100% 30,778 30,778 34,804 34,804
Total other receivables
548
,
016
95,20
4
469,167
71,477
Credit loss allowance 95,204 71,477
Total other receivables (carrying
amount)
452
,
812
397,690
The Group did not recognise any expected credit loss allowance for trade receivables in the amount
of RR 507,889 because of excess of collateral value over the gross carrying value of these receivables as
at 31 December 2021 (Note 15) (31 December 2020: RR 1,112,324).
The following table explains the changes in the credit loss allowance for trade and other receivables under
the simplified expected credit loss model between the beginning and the end of the annual period:
Trade receivables
Other receivables
As at 1
January 2021
76,845
71,477
Accrued
670,589
31,848
Utilised
(263)
(8,121)
As at 31 December 2021 (
Note 30
)
747,171
95,20
4
Trade receivables
Other receivables
As at 1 January 2020
239,248
112,014
(Reversed) (13,285) (12,023)
Utilised (149,118) (28,514)
As at 31 December 2020 (
Note 30
)
76,845
71,477
The majority of the Group’s trade debtors are proven counterparties with whom the Group has long-lasting
sustainable relationships.
163
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
6. Prepayments
Prepayments classified as current assets represent the following advance payments:
31 December 202
1
31 December 2020
Prepayments for other materials 1,338,778 554,650
Prepayments for transportation services 1,038,156
677,737
Prepayments to customs 794,204
6,245
Prepayments for fuel and energy 775,258
361,373
Prepayments for raw material 757,701
574,698
Prepayments under insurance contracts 339,334
299,138
Prepayments for advertising expenses 146,974
130,272
Prepayments for rent 89,471
127,639
Prepayments for animals 44,915
70,634
Other prepayments 276,884
207,803
Less: provision for impairment (187,643)
(68,965)
Total
5,
41
4
,
032
2,941,224
Reconciliation of movements in the prepayments’ impairment provision:
202
1
20
20
As at 1
January
68,965
34,936
Accrued 121,714 38,900
Utilised (3,036) (4,871)
As at 31 December
187,643
68,965
As at 31 December 2021 prepayments classified as non-current assets and included in the “Advances paid
for property, plant and equipment” line in the consolidated statement of financial position in the amount of
RR 7,355,467 (31 December 2020: RR 6,905,003) and represent advance payments for construction works
and purchases of production equipment.
7. Other taxes receivable
31 December 202
1
31 December 20
20
Value added tax receivable 8,290,440 5,463,711
Other taxes receivable 30,753 42,964
Total
8,3
21
,
193
5,506,675
8. Inventories
31 December 202
1
31 December 20
20
Finished goods 39,281,443 30,298,732
Raw materials 26,874,508 30,337,027
Work in progress 4,764,294 3,041,868
Less: provision for write-down to net realisable value (1,163,882) (411,238)
Total
69,756,36
3
63,266,389
As at 31 December 2021 the value of finished goods increased mainly as a result of higher cost of Oil and
Fats products and higher fair value of harvested crops. Effect on inventory was partially offset by lower raw
materials due to decrease of sunflower seeds stocks.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
9. Biological assets
The fair value of biological assets belongs to level 3 measurements in the fair value hierarchy. Pricing model
is used as a valuation technique for biological assets fair value measurement. There were no changes in
the valuation technique during the years ended 31 December 2021 and 2020. The reconciliation of changes
in biological assets between the beginning and the end of the year can be presented as follows:
Short-term biological assets
Consumable
livestock, pigs
Unharvested
crops
Total
As at 1 January 2020
3,809,318
1,016,531
4,825,849
Increase due to purchases and gain arising from cost
inputs 24,243,682
17,939,612 42,183,294
Gain on initial recognition of agricultural produce - 14,279,563 14,279,563
Lost harvest written-off (Note 23) - (188,536) (188,536)
Decrease due to harvest and sales of the assets (23,971,389) (32,185,021) (56,156,410)
Gain arising from changes in fair value less estimated
point-of-sale costs 791,219
- 791,219
As at 31 December 2020
4,872,830
862,149
5,734,979
Increase due to purchases and gain arising from cost
inputs 31,347,531
19,423,838 50,771,369
Gain on initial recognition of agricultural produce - 21,756,917 21,756,917
Lost harvest written-off (Note 23) - (272,407) (272,407)
Decrease due to harvest and sales of the assets (30,070,060) (40,138,183) (70,208,243)
Loss arising from changes in fair value less estimated
point-of-sale costs (29,945)
- (29,945)
As at 31 December 2021
6,120,356
1,632,314
7,752,670
Long-term biological assets
Bearer livestock
Pigs
Cows
Total
As at 1 January 2020
2,154,000
125,335
2,279,335
Increases due to purchases and breeding costs of
growing livestock 1,635,760
30,496 1,666,256
Decreases due to sales (535,120) (40,313) (575,433)
Loss arising from changes in fair value less estimated
point-of-sale costs (839,406)
(2,624) (842,030)
As at 31 December 2020
2,415,234
112,894
2,528,128
Increases due to purchases and breeding costs of
growing livestock 572,677
40,097 612,774
Decreases due to sales (359,228) (145,264) (504,492)
Gain/(Loss) arising from changes in fair value less
estimated point-of-sale costs 116,180
(7,727)
108,453
As at 31 December 2021
2,744,86
3
-
2,744,86
3
In 2021 the aggregate gain on initial recognition of agricultural produce and from the change in fair value
less estimated point-of-sale costs of biological assets amounted to RR 21,835,425 (2020: RR 14,228,752).
Included in the above amounts there are gains related to realised biological assets and agricultural produce
amounting to RR 18,426,116 (2020: RR 8,338,305).
164
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
9. Biological assets (continued)
Livestock population were as follows:
31 December 202
1
31 December 20
20
Cows (heads) - 2,032
Pigs within bearer livestock (heads) 135,545 130,229
Pigs within consumable livestock (tonnes) 64,068 59,016
Cows were bred for the purpose of production of milk, in 2021 they were sold to external party. In 2021
the milk produced amounted to 3,569 tonnes (2020: 7,080 tonnes).
In 2021 total area of arable land amounted to 604 thousand ha (2020: 559 thousand ha).
The main crops of the Group’s agricultural production and output were as follows (in thousands
of tonnes):
202
1
2020
Sugar beet 3,637 2,889
Wheat 713 1,007
Barley 2 78
Sunflower 72 67
Corn 163 110
Soya bean 341 284
Key inputs in the fair value measurement of the livestock and the agricultural crops harvested together with
sensitivity to reasonably possible changes in those inputs are disclosed in Note 2.2.
As at 31 December 2021 biological assets with a carrying value of RR 417,669 (2020: RR 1,397,922) were
pledged as collateral for the Group’s borrowings (Note 15).
The Group is exposed to financial risks arising from changes in meat and crops prices. The Group does
not anticipate that crops and meat prices will decline significantly in the foreseeable future except some
seasonal fluctuations and, therefore, has not entered into derivative or other contracts to manage the risk
of a decline in respective prices. The Group reviews its outlook for meat and crops prices regularly in
considering the need for active financial risk management.
10. Long-term investments
31 December 202
1
31 December 20
20
Bonds held to collect (Note 15) 19,900,000 19,900,000
Bank deposits with maturity over twelve months 14,071,101 14,070,635
Investments in third parties 8,556,556 8,556,556
Bonds held for trading (Note 15) - 165,129
Total
42,527,657
42,692,320
The above long-term investments are denominated in Russian Roubles. Interest receivable on bonds to
collect is disclosed in Note 4.
As at 31 December 2021 bank deposits in the amount of RR 13,900,000 (31 December 2020:
RR 13,900,000) were pledged as collateral for the Group’s borrowings.
Bank deposits include a restricted deposit in Vnesheconombank in the amount of RR 13,900,000 which
could not be withdrawn till 27 November 2028 (Note 15).
Bonds held to collect include restricted bonds in Rosselkhozbank in the amount of RR 19,900,000 which
could not be withdrawn till 22 November 2038 (Note 15).
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
10. Long-term investments (continued)
On 20 August 2019 the Group acquired 22.5% of ownership interest in LLC GK Agro-Belogorie, one of the
largest pork producers in Russia and a large landholder in Belgorod region. Total cash consideration
transferred under the deal amounted to RR 8,500,000.
Key business areas of investee include industrial pig farming and meat processing, milk livestock, crop and
feed production.
Investment in LLC GK Agro-Belogorie is classified as investment at fair value through other comprehensive
income. The management considers that the Group does not have significant influence over
LLC GK Agro-Belogorie due the following:
 The Group has no power to appoint the members of the board of directors or equivalent governing
body of LLC GK Agro-Belogorie;
 Group management does not participate in the policy-making processes, including decisions about
dividends or other distributions;
 There were no material transactions or interchange of managerial personnel between the Group and
LLC GK Agro-Belogorie since the share acquisition date;
 No essential technical information was interchanged between the Group and LLC GK Agro-
Belogorie.
The fair value of the investment determined applying the level 3 valuation model amounted to RR 8,500,000
at acquisition date.
Subsequent to the initial recognition this investment is measured at fair value through other comprehensive
income. As at 31 December 2021 the fair value of the acquired investment amounted to RR 8,556,556
(31 December 2020: RR 8,556,556). The fair value of the investment has not changed significantly since
2020.
The fair value of the investment has been determined based on discounted cash flow calculation using the
actual financial data and budgets of LLC GK Agro-Belogorie covering a five-year period and the expected
market prices for the key products for the same period according to leading industry publications. Cash
flows beyond the five-year period were projected with a long-term growth rate of 1.8% per annum (2020:
1.8% per annum).
The assumptions used for calculation and sensitivity of fair value measurement are presented in Note 30.
Bonds held to collect were denominated in Russian Roubles and mature in 2038. Nominal interest rate on
bonds equals 10.5%. Bonds held for trading were acquired with the intention of generating a profit from
short-term price fluctuations and for the purpose of these consolidated financial statements were classified
as trading investments with measurement at fair value through profit or loss.
The table below shows the rating and balances of bonds held for trading and bonds held to collect:
31 December
202
1
31 December
20
20
Rating agency
Rating
Balance
Rating
Balance
Rosselkhozbank Fitch Ratings bbb- 19,900,000 bbb- 19,900,000
VimpelCom Ltd Fitch Ratings - bbb- 142,205
LLC Lenta Fitch Ratings - bb+ 22,924
Total bonds (Note 10)
19,900,000
20,065,
129
165
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
11. Property, plant and equipment
Movements in the carrying amount of property, plant and equipment were as follows:
Land Machinery,
vehicles and
equipment
Buildings
and
constructions
Assets under
construction
Other Total
Cost (
Note 2.5
)
As at 1 January 2020 8,340,021 57,947,352 42,134,202 18,776,155 238,571 127,436,301
Additions 412,553 2,180,363 247,729 14,262,182 29,416 17,132,243
Transfers - 3,596,649 12,554,965 (16,163,200) 11,586 -
Disposals (21,624) (664,621) (175,781) (167,736) (17,508) (1,047,270)
As at 31 December 2020
8,730,950
63,059,743
54,761,115
16,707,401
262,065
143,521,274
Accumulated
depreciation (
Note 2.6
)
As at 1 January 2020 - (33,894,623) (12,727,333) - (184,862) (46,806,818)
Charge for the year - (6,667,902) (3,138,494) - (37,807) (9,844,203)
Disposals - 590,912 41,526 - 16,397 648,835
As at 31 December 2020
-
(39,971,613)
(15,824,301)
-
(206,272)
(56,002,186)
Net book value
as at 31 December 2020
8,730,950
23,088,130
38,936,814
16,707,401
55,793
87,519,088
Land Machinery,
vehicles and
equipment
Buildings
and
constructions
Assets under
construction
Other Total
Cost (
Note 2.5
)
As at 1 January 2021 8,730,950 63,059,743 54,761,115 16,707,401 262,065 143,521,274
Additions 1,021,851 19,772,434 9,484,566 15,768,265 68,545
46,115,661
Transfers - 2,692,253 1,288,521 (4,003,480) 22,706 -
Disposals (254,764) (1,566,586) (161,710) (656,053)
19,625
(2,619,488)
As at 31 December
2021
9,498,037
83,957,844
65,372,492
27,816,133
372,941
187,017,447
Accumulated
depreciation (
Note 2.6
)
As at 1 January 2021 - (39,971,613) (15,824,301) - (206,272) (56,002,186)
Charge for the year - (9,052,685) (4,129,984) - (36,591) (13,219,260)
Disposals - 1,281,129 62,657 - 19,625 1,363,411
As at 31 December
2021
-
(47,743,169)
(19,891,628)
-
(223,
238
)
(67,858,035)
Net book value
as at 31 December
2021
9,498,037
36,214,675
45,480,864
27,816,133
149,703
119,159,412
As at 31 December 2021 property, plant and equipment with a net book value of RR 40,384,880
(31 December 2020 RR 25,920,704) was pledged as collateral for the Group’s borrowings (Note 15).
As at 31 December 2021 and 2020 the assets under construction related mainly to the pig farm construction
in the Tambov region and Primorsky Krai. During the reporting period, the Group capitalised borrowing
costs within assets under construction in the amount of RR 1,922,627 (2020: RR 1,537,052). The average
capitalisation rate in 2021 was 7.34% (2020: 7.27%).
At 31 December 2021 and 2020, inventories intended for construction related mainly to the inventories
which will be used for the pig farm construction in the Primorsky Krai.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
11. Property, plant and equipment (continued)
Movements in the carrying amount of inventories intended for construction were as follows:
As at 1 January 2020
3,157,369
Additions 3,504,176
Disposals (3,308,215)
As at 31 December 2020
3,353,330
As at 1 January 2021 3,353,330
Additions 468,839
Disposals (2,217,599)
As at 31
December 2021
1,604,570
12. Right-of-use assets and lease liabilities
The Group leases various lands, buildings, machinery, equipment and vehicles. Rental contracts are
typically made for fixed periods of 12 months to 49 years but may have extension options as described
below.
Leases are recognised as a right-of-use asset and a corresponding liability from the date when the leased
asset becomes available for use by the Group.
As for the land lease, contracts include monetary agreements in which payments do not depend on an
index or a rate and non-monetary agreements based on a fixed volume of harvested crops. Based on
management’s assessment and previous experience, the lease term was set as 10 years as a minimum
for contracts with prolongation option. This term is justified by payback period of particular investment
projects, which depend on the time to analyse composition of the land and the roll-out and purchase price
of necessary fertilizers and equipment.
Extension and termination options are included in a number of property and equipment leases across the
Group. These are used to maximise operational flexibility in terms of managing the assets used in the
Group’s operations. The majority of extension and termination options held are exercisable only by the
Group and not by the respective lessor. For not tacitly renewable leases with contractual terms less than
12 months the lease term (and lease enforceability) is not considered to go beyond initial contract term.
The Group applies the exemption for short-term leases for such agreements.
The Group recognised right-of-use asset as follows:
Land
Buildings
Equipment
Other
Total
Carrying amount at 1
January 2020
4,801,618
1,335,643
88,445
5,001
6,230,707
Additions and modifications 1,620,103 468,444 8,217 - 2,096,764
Disposals (663,379) (8,507) - - (671,886)
Depreciation charge (Note 20,21,22) (463,976) (223,095) (32,855) (1,092) (721,018)
Carrying amount at 31 December
2020
5,294,366
1,572,485
63,807
3,909
6,934,567
Land
Buildings
Equipment
Other
Total
Carrying amount at 1
January 2021
5,294,366
1,572,485
63,807
3,909
6,934,567
Additions and modifications
1,518,128 158,803 7,898 - 1,684,829
Disposals (478,338
)
- - - (478,338
)
Depreciation charge (Note 20,21,22) (564,934) (200,960) (27,535) (1,091) (794,520)
Carrying amount at 31 December
2021
5,769,222 1,530,328 44,170 2,818 7,346,538
Interest expense included in finance costs for 2021 was RR 591,558 (2020: RR 580,276) (Note 24).
As at 31 December 2021, future cash outflows of RR 2,192,694 (undiscounted) (31 December 2020:
RR 1,830,868) to which the Group is potentially exposed to during the lease term have not been included
in the lease liability because they include variable lease payments that are linked to cadastral value.
166
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
12. Right-of-use assets and lease liabilities (continued)
Variable lease payments that depend on cadastral value are recognised in profit or loss in the period in
which the condition that triggers those payments occurs.
Expenses relating to short-term leases (included in cost of sales and general and administrative expenses):
202
1
20
20
Expenses related to contracts in which variable payments do not
depend on an index or a rate
227,872
145,923
Expenses relating to short-term leases 395,774 528,716
Total outflow for leases in 2021 was RR 1,098,167 (2020: RR 1,057,899), including RR 302,739 (2020:
RR 439,157) settled in agricultural products.
The reconciliation of lease liabilities and the movements is presented in Note 15.
13. Intangible assets
Trademarks Software
licenses
Internally
developed
software
Other Total
Cost (Note 2.9)
As at 1 January 2020 156,971 902,077 49,712 365,644 1,474,404
Additions 4,903 336,653 122 77,130 418,808
Disposals (1,333) (238,403) (14,362) (265) (254,363)
As at 31 December 20
20
160,541
1,000,327
35,472
442,509
1,638,849
Accumulated amortisation
(Note 2.9)
As at 1 January 2020 (74,987) (554,672) (39,997) (196,113) (865,769)
Charge for the year (6,354) (325,279) (3,782) (56,756) (392,171)
Disposals 1,333 223,310 14,098 143 238,884
As at 31 December 20
20
(80,008)
(656,641)
(29,681)
(252,726)
(1,019,056)
Net book value
as at 31 December 2020
80,533
343,686
5,791
189,783
619,793
Trademarks Software
licenses
Internally
developed
software
Other Total
Cost (Note 2.9)
As at 1 January 2021 160,541 1,000,327 35,472 442,509 1,638,849
Additions 37,305 771,018 12,771 221,524 1,042,618
Acquisitions through business
combinations
- 32,132 -
- 32,132
Disposals (814) (394,399) (1,658) (97,248) (494,119)
As at 31 December 2021
197,032
1,409,078
46,
58
5
566,785
2,
219,48
0
Accumulated amortisation
(Note 2.9)
As at 1 January 2021 (80,008) (656,641) (29,681) (252,726) (1,019,056)
Charge for the year (58,982) (375,231) (3,443) (40,789) (478,445)
Disposals 761 394,303 59 26,955 422,078
As at 31 December 2021
(138,229)
(637,569)
(33,06
5
)
(266,56
0
)
(1,075,42
3
)
Net book value
as at 31 December 2021
58,80
3
771,509
13,520
300,22
5
1,144,057
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
14. Share capital, share premium and transactions with non-controlling interests
Share capital and share premium
At 31 December 2021 the issued and paid share capital consisted of 27,333,333 ordinary shares
(31 December 20120: 27,333,333 ordinary shares) with par value of EUR 0.01 each.
At 31 December 2021 and 2020, the authorised share capital consisted of 60,000,000 ordinary shares with
par value of EUR 0.01 each.
Treasury shares
At 31 December 2021 the Group held 2,135,313 of its own GDRs (31 December 2020: 2,135,313 own
GDRs) that is equivalent of approximately 427,063 shares (31 December 2020: 427,063 shares). The
GDRs are held as treasury shares. In 2021 and 2020 there were no acquisitions of treasury shares.
In 2020 31,000 GDRs were transferred to the employees under the share option incentive arrangements.
No GDRs were transferred to the employees under the share option incentive schemes during 2021.
Dividends
In 2021 the Company distributed RR 10,770,584 of dividends for the second half of 2020 and RR 8,755,947
thousand of interim dividends for the first half of 2021. The dividends for the second half of 2020 amounted
to RR 400.30 per share and interim dividends for 2021 amounted to RR 325.42 per share.
In 2020 the Company distributed RR 3,216,350 of dividends for the second half of 2019 and RR 1,922,033
of interim dividends for the first half of 2020. The dividends for the second half of 2019 amounted to
RR 119.54 per share and interim dividends for 2020 amounted to RR 71.43 per share. All dividends
declared were paid in 2020.
Purchases of non-controlling interest
2021
On 22 October 2021 the Group acquired 25% additional shares in LLC Primorskaya Soya, thereby
increasing its share in the share capital to 100% (2020: 75%). The total excess of consideration paid over
the Group’s share of identifiable net assets acquired in the amount of RR 55, 541 was recorded as a
capital transaction in the consolidated statement of changes in equity.
On 28 October 2021 the Group’s subsidiary LLC Primorskaya Niva was liquidated. The Group held 75%
share in the share capital of LLC Primorskaya Niva at the date of liquidation, corresponding non-controlling
interest disposal in the amount of RR 0 was recorded as a capital transaction in the consolidated statement
of changes in equity.
2020
On 3 March 2020 the Group’s subsidiary OJSC Pugachevskiy Elevator was liquidated. The Group held
84.95% share in the share capital of OJSC Pugachevskiy Elevator at the date of liquidation, corresponding
non-controlling interest disposal in the amount of RR 2,792 was recorded as a capital transaction in the
consolidated statement of changes in equity.
167
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
15. Borrowings
Short-term borrowings
31 December 202
1
31 December 20
20
Bank loans 90,806,471 32,762,452
Loans received from third parties 16,600 16,600
Interest accrued on borrowings from third parties 246 615
Current portion of long-term borrowings 17,925,523 18,973,808
Total
108,748,840
51,753,475
All short-term borrowings are at fixed interest rate. The above borrowings are denominated in the following
currencies:
Interest rate
31 December 2021
Interest rate
31 December 2020
Russian Roubles 1.0%-11.14% 108,748,840 1.0%-11.14% 51,753,475
Total
108,748,840
51,753,475
Long-term borrowings
31 December 2021
31 December 2020
Bank loans 81,900,548 82,149,528
Less current portion of long-term borrowings from:
Bank loans (17,925,523)
(18,973,808)
Total
63,975,025
63,175,720
The above borrowings are denominated in the following currencies:
Interest rate
31 December 2021
Interest rate
31 December 2020
Russian Roubles 1.0%-12.5% 63,975,025 1.0%-12.5% 63,175,720
Total
63,975,025
63,175,720
In November 2018 the Group entered into a transaction with JSС Rosselkhozbank (hereinafter – “RSHB”)
for the acquisition of debt of Group of companies Solnechnye producty and its subsidiaries and related
companies. The gross value of total consideration for this acquisition amounted to RR 34,810,446 and the
payment will be made by the Group in cash in accordance with the payment schedule deferred over
20 years.
The deferred liability due to RSHB is presented within bank loans. The fair value of this liability at inception
date was RR 19,897,813 determined using the effective interest rate of 10.7% (applying level 2 valuation
model). The liability is subsequently measured at amortized cost with an effective interest rate of 10.7%.
The liability is collateralised by the 20-year bonds of RSHB in the amount of RR 19,900,000 at the interest
rate of 10.5% per annum purchased by the Group.
The fair value of the loans acquired in this transaction determined applying the level 3 valuation model
amounted to RR 23,410,231.
The fair value of the acquired loans has been determined based on the fair value of the collateral. The
collateral fair value is represented by the fair value of the underlying rights of claim determined with
reference to the assets pledged and other assets of the borrower / guarantors, taking into account
bankruptcy procedure period and discount rate, applicable to distressed assets. The fair value of the
production companies as a part of the assets pledged was determined based on discounted cash flow
calculations.
The difference of RR 3,412,418 between the fair value of the consideration and the fair value of loans
acquired represented day-one gain was initially deferred for the period of 5 years being the average term
of the acquired loans.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
15.
Borrowings (continued)
As at 31 December 2019 the bankruptcy procedure expected to be finalised by the end of 2020. In 2020
COVID-19 pandemic caused the overall slowdown of bankruptcy procedures leading to the shift of expected
finalization to the end of 2021. As at 31 December 2020 the acquired loans amounted to RR 18,580,203
(including RR 4,875,725 of interest receivable on these loans) and recognised within Short-term
investments (Note 4).
In 2020 part of loans issued was repaid and the Group started to participate in auctions to buy some of the
assets of Solnechnye producty. An expected credit loss allowance for loans receivable in the amount of RR
4,804,688 was recognized because of the excess of gross carrying value of these loans as at 31 December
2020 over their collateral fair value mainly driven by the bankruptcy procedures terms’ increase. The
collateral fair value is represented by the fair value of the underlying rights of claim determined with
reference to the assets pledged and other assets of the borrower / guarantors, taking into account
bankruptcy procedure period and discount rate, applicable to distressed assets. The fair value of the
production companies as part of the assets pledged was determined based on discounted cash flow
calculations using the actual financial data and budgets of pledged Solnechnye producty production units
covering a five-year period and the expected market prices for the key products for the same period
according to the leading industry publications.
The assumptions used for the calculations to which the fair value is most sensitive were:
 WACC after-tax discount rate of 12.3%;
 Discount rate applicable to distressed assets of 20.3%.
If the revised estimated WACC after-tax discount rate applied to the discounted cash flows used in the
valuation models of the loans acquired and discount rate applicable to distressed assets had been 1.0%
higher than management’s estimates, with all other assumptions held constant, the Group would need to
increase the credit loss allowance by RR 1,990,099.
During the year ended 31 December 2021 the Group acquired on a public auction the key production assets
of two oil extraction plants: OJSC Atkarskiy MEZ and LLC Volzhskiy Terminal and fat plant JSC Zirovoj
kombinat, subsidiaries of Solnechnye Producty, for total consideration of RR 28,202,943 (Note 11). These
assets were pledged as a collateral for loans issued to Solnechnye Producty. After these asset acquisitions
major part of corresponding loans issued were repaid. We assessed whether the assets acquired by the
Group from Solnechnye Producty meet the definition of a business under IFRS 3. The Group acquired no
processes or outputs in the transaction and, therefore the Group accounted for it as an acquisition of assets
rather than a business combination.
As at 31 December 2021 the expected credit loss allowance for loans receivable in the amount of RR
4,804,688 recognized as at 31 December 2020 was reversed in full amount.
As at 31 December 2021 the acquired loans amounted to RR 1,591,805 (including RR 417,713 of interest
receivable on these loans) and are recognised within Short-term investments (Note 4). Redemption of
remaining loans issued is expected to be finalized by 30 June 2022.
As at 31 December 2020 the day-one gain amounted to RR 552,748 and is recognised within Trade and
other payables (Note 16). As at 31 December 2021 the day-one gain was fully realised.
In November 2015 the Group entered into a transaction with VEB for the acquisition of debt (loans and
bonds) of PJSC Group Razguliay and its subsidiaries (hereinafter – “Razguliay Group”). The total
consideration for this acquisition amounted to RR 33,914,546 and was paid by the Group in cash. As at
31 December 2021 the debts were fully repaid.
For the purpose of financing of this transaction, the Group raised a thirteen-year loan from VEB
in the amount of RR 33,914,546 at 1% per annum. The fair value of this loan at inception date was
RR 13,900,000 determined using the effective interest rate of 13.23%. The loan is measured at amortized
cost with an effective interest rate of 13.23%. The loan is secured by a thirteen-year deposit placed by the
Group with VEB in the amount of RR 13,900,000 (Note 10) at the interest rate of 12.84% per annum.
168
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
15. Borrowings (continued)
Maturity of long-term borrowings
31 December 202
1
31 December 20
20
Fixed interest rate borrowings:
2 years 9,963,539 16,867,579
3-5 years 26,737,172 21,662,876
More than 5 years 27,274,314 24,645,265
Total
63,975,025
63,175,720
For details of property, plant and equipment and biological assets pledged as collateral for the above
borrowings see Note 9 and Note 11. For details of bank deposits pledged as collateral for the above
borrowings refer to Notes 10.
Shares of several companies of the Group are pledged as collateral for the bank borrowings, as follows:
Pledged shares,
%
31 December
202
1
31 December
20
20
LLC Rusagro-Primorie 100.0 100.0
LLC Rusagro-Tambov 51.0 51.0
Reconciliation of liabilities arising from financing activities
The table below sets out an analysis of liabilities from financing activities and the movements in the Group’s
liabilities from financing activities for each of the periods presented. The items of these liabilities are those
that are reported as financing in the consolidated statement of cash flows:
Borrowings Lease liabilities Total liabilities from
financing activities
As at 1 January 2020
97,875,483
4,906,592
102,782,075
Cash flows
Proceeds from borrowings 77,932,773 - 77,932,773
Repayment of borrowings (65,389,365) (123,044) (65,512,409)
Interest payments (3,700,753) (495,698) (4,196,451)
Non
-
cash changes
Foreign exchange adjustments 1,366,375 24,502 1,390,877
Other non-cash movements 6,844,682 1,487,015 8,331,697
As at 31 December 2020
114,929,195
5,799,367
120,728,562
Cash flows
Proceeds from borrowings 107,856,022 - 107,859,742
Repayment of borrowings (52,668,951) (335,167) (53,004,118)
Interest payments (4,131,675) (460,260) (4,591,935)
Non
-
cash changes
Foreign exchange adjustments (661) (5,144) (5,805)
Other non-cash movements 6,739,935 1,667,049 8,403,264
As at 31 December 202
1
172,723,865
6,665,845
179,389,710
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
15. Borrowings (continued)
For the purpose of conformity with the methodology of the Group's Net Debt calculation, cash flows
from investing and financing activities in the Group management accounts are presented as follows:
Year ended 31 December 2021
According to
IFRS
Reclassifications
Management
accounts
Cash flows from investing activities
Purchases of property, plant and equipment
(42 029 048)
-
(42 029
048)
Purchases of inventories intended for construction
(476,322)
-
(476,322)
Change in cash on bank deposits
(18,000,000)
18,000,000
-
Proceeds from sales of bonds with maturity over three
months
220,282
(220,282)
-
Purchases of associates
(102,000)
-
(102,000)
Purchases of other investments
(19,083)
-
(19,083)
Purchases of loans issued
(2,256,313)
2,256,313
-
Loans repaid
22,959,494
(22,959,494)
-
Interest received
8,786,038
(8,786,038)
-
Proceeds from sales of other assets
217,591
-
217,591
Other cash flows in investing activities
1,133,022
-
1,133,022
Net cash used in investing activities
(29 566
339)
(11,709,501)
(41 275
840)
Cash flows from financing activities
Proceeds from borrowings
107,856,022
-
107,856,022
Repayment of borrowings
(52,668,951)
-
(52,668,951)
Change in cash on bank deposits
-
(18,000,000)
(18,000,000)
Purchases of bonds with maturity over three months
-
220,282
220,282
Purchases of loans issued
-
(2,256,313)
(2,256,313)
Loans repaid*
-
22,959,494
22,959,494
Dividends paid to owners Ros Agro PLC
(19,417,565)
-
(19,417,565)
Interest and other finance cost paid
(4,591,935)
-
(4,591,935)
Interest received
-
8,786,038
8,786,038
Proceeds from government grants
2,879,218
-
2,879,218
Repayment of lease liabilities
-
principal
(335,167)
-
(335,167)
Other
cash flows in financing activities
(44,369)
-
(44,369)
Net cash used in financing activities
33,677,253
11,709,501
45,386,754
Year ended 31 December 2020
According to
IFRS
Reclassifications
Management
accounts
Cash
flows from investing activities
Purchases of property, plant and equipment
(12,
405,295
)
-
(12,405,295)
Purchases of inventories intended for construction
(1,660,923)
-
(1,660,923)
Purchases of bonds with maturity over three months
(197,523)
197,523
-
Purchases of associates
(92,712)
-
(92,712)
Purchases of loans issued
(13,829)
13,829
-
Loans repaid
1,012,854
(1,012,854)
-
Interest received
4,808,803
(4,808,803)
-
Other cash flows in investing activities
665,272
-
665,272
Net cash
used in investing activities
(7,883,353)
(5,610,305)
(13,493,658)
Cash flows from financing activities
Proceeds from borrowings
77,932,773
-
77,932,773
Repayment of borrowings
(65,389,365)
-
(65,389,365)
Purchases of bonds with maturity over
three months
-
(197,523)
(197,523)
Purchases of loans issued
-
(13,829)
(13,829)
Loans repaid*
-
1,012,854
1,012,854
Interest and other finance cost paid
(4,
196,451
)
-
(4,
196,451
)
Interest received*
-
4,808,803
4,808,803
Proceeds from
government grants
2,192,
483
-
2,192,
483
Repayment of lease liabilities
-
principal
(
123,
044
)
-
(
123,
044
)
Other cash flows in financing activities
(5,134,426)
-
(5,134,426)
Net cash used in financing activities
5,281,970
5,610,305
10,892,275
169
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
15. Borrowings (continued)
Net Debt*
As part of liquidity risk management, the Group Treasury analyses its net debt position. The Group
management determines the Net Debt of the Group as outstanding long-term borrowings and short-term
borrowings less cash and cash equivalents, all bank deposits, bonds held for trading and banks’ promissory
notes. The Group management compares net debt figure with Adjusted EBITDA (Note 29).
As at 31 December 2021 and 2020 the net debt of the Group was as follows:
31 December 2
02
1
31 December 20
20
Long-term borrowings 63,975,025 63,175,720
Short-term borrowings 108,748,840 51,753,475
Cash and cash equivalents (Note 3) (46,462,179) (11,866,798)
Bank deposits within long-term investments (Note 10) (14 071 101) (13,900,000)
Bank deposits within short-term investments (Note 4) (18,519,392) -
Long-term bonds held for collect (Note 10) (19,900,000) (19,900,000)
Long-term bonds held for trading (Note 10) - (165,129)
Short-term bonds held for collect (Note 4) (362,475) (197,523)
Net debt*
73,408,718
68,899,745
including long-term Net debt 30,003,924 29,210,591
including short-term Net debt 43,404,794 39,689,154
Adjusted EBITDA* (
Note 29
)
48,059,
78
9
31,984,073
Net debt/ Adjusted EBITDA
*
1.53
2
.
15
* not an IFRS measure.
16. Trade and other payables
31 December 202
1
31 December 20
20
Trade accounts payable 9,940,834 10,075,172
Payables for property, plant and equipment 992,962 983,481
Other payables 289,123 33,388
Total financial
liabilities within trade and other payables
11,
222,919
11,092,041
Payables to employees 2,297,560 1,597,491
Advances received 1,920,156 2,773,858
Other payables (Note 15) - 552,748
Total trade and other payables
15,
440,635
16,016,138
Financial liabilities within trade and other payables of RR 283,332 (31 December 2020: RR 177,222) are
denominated in US Dollars, financial liabilities within trade and other payables of RR 452,470 (31 December
2020: RR 646,121) are denominated in Euros. All other financial liabilities within trade and other payables
are denominated in Russian Roubles.
17. Other taxes payable
31 December 202
1
31 December 20
20
Value added tax 6,813,191 3,711,148
Social contributions 323,299 243,035
Property tax 200,701 92,776
Personal income tax 74,732 14,371
Transport tax 5,936 5,345
Other 36,699 29,524
Total
7,454,558
4,096,199
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
18. Government grants
During 2020-2021 the Group received government grants from the Tambov and Belgorod regional
governments and the Federal government in form of partial compensation of the investments into
acquisition of equipment for agricultural business and sugar processing and the investments into
reconstruction and modernisation of the pig-breeding farms and the slaughter house. The receipts of these
grants in 2021 amounted to RR 94,896 (2020: RR 291,966). These grants are deferred and amortised on
a straight-line basis over the expected lives of the related assets.
In 2020-2021 the Group obtained government grants for reimbursement of interest expenses on bank loans
received for construction of the pig-breeding farms in the Far East and Tambov. The government grants
related to interest expenses capitalised into the carrying value of assets, were similarly deferred and
amortised on a straight-line basis over the expected lives of the related assets. The deferred government
grants, related to capitalised interest expense, amounted to RR 1,337,153 (2020: RR 995,874).
The movements in deferred government grants in the consolidated statement of financial position were as
follows:
202
1
20
20
As at 1 January 8,536,899
8,306,779
Government grants received 1,432,023 1,287,840
Amortization of deferred income to match related depreciation (Note 23) (643,392) (642,501)
Write-off due to early repayment of the loan - (415,219)
As at 31 December
9,325,530
8,536,899
Other bank loan interests, which had been refunded by the state, were credited to the consolidated
statement of profit or loss and other comprehensive income and netted with the interest expense (Note 24).
Other government grants received are included in Note 23.
170
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
19. Sales
Disaggregation of revenue for 2021 by category:
Sugar
Meat
Agriculture
Oil and Fat
Other
Elimination
Total
Type of goods and services
Sales of goods 35,264,205 39,546,509 41,357,971 122,792,170 184,673 (20,180,780) 218,964,748
Transportation services 478,926 81,555 82,989 2,320,078 -
- 2,963,548
Other services 617,435 - 440,050 124,353 534,779 (712,474)
1,004,143
Total revenue from
contracts with customers
36,360,566
39,628,064
41,881,010
125,236,601
719,452
(20,893,254)
222,932,439
Geographical market
Russian Federation 32,669,135 33,564,924 40,733,440 70,665,620 576,872 (20,893,254) 157,316,737
Foreign countries 3,691,431 6,063,140 1,147,570 54,570,981 142,580 - 65,615,702
Total revenue from contracts with customers
36,360,566
39,628,064
41,881,010
125,236,601
719,452
(20,893,254)
222,932,439
Timing of revenue recognition
Goods transferred at a point of time 35,264,205 39,546,509 41,357,971 122,792,170 184,673 (20,180,780) 218,964,748
Services transferred over time 1,096,361 81,555 523,039 2,444,431 534,779 (712,474)
3,967,691
Total revenue from contracts with customers
36,360,566
39,628,064
41,881,010
125,236,601
719,452
(20,893,254)
222,932,439
Disaggregation of revenue for 2020 by category under revenue recognition guidance:
Sugar
Meat
Agriculture
Oil and Fat
Other
Elimination
Total
Type of goods and services
Sales of goods 27,272,132 32,391,964 33,973,009 77,230,964 326,357 (15,811,891) 155,382,535
Transportation services 761,798 42,250 82,138 2,312,951 -
- 3,199,137
Other services 78,589 - 292,359 182,336 304,751 (468,672)
389,363
Total revenue from contracts with customers
28,112,519
32,434,214
34,347,506
79,726,251
631,108
(16,280,563)
158,971,035
Geographical market
Russian Federation 22,552,664 28,303,697 27,669,655 45,398,977 32,874 (16,280,563)
107,677,304
Foreign countries 5,559,855 4,130,517 6,677,851 34,327,274 598,234 - 51,293,731
Total revenue from contracts with customers
28,112,519
32,434,214
34,347,506
79,726,251
631,108
(16,280,563)
158,971,035
Timing of revenue
recognition
Goods transferred at a point of time 27,272,132 32,391,964 33,973,009 77,230,964 326,357 (15,811,891) 155,382,535
Services transferred over time 840,387 42,250 374,497 2,495,287 304,751 (468,672)
3,588,500
Total revenue from contracts with customers
28,112,519
32,434,214
34,347,506
79,726,251
631,108
(16,280,563)
158,971,035
The transportation expenses related to Revenue from transportation services in the amount of RR 2,963,548 were recognised within Cost of sales (2020:
RR 3,199,137).
171
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
20. Cost of sales
202
1
20
20
Raw materials and consumables used 142,726,706 103,510,553
Services 14,267,005 12,175,874
Depreciation 12,181,199 9,441,374
Payroll 10,859,254 8,963,448
Purchases of goods for resale 3,129,999 1,361,672
Other 4,881,272 1,614,609
Provision for net realisable value 1,043,295 621,090
Depreciation of right-of-use assets 616,248 534,025
Purchase of biological assets 129,779 1,241,577
Change in work in progress, finished goods and goods for resale,
biological assets (20,586,476)
(18,331,564)
Total
169,248,281
121,132,658
“Change in work in progress, finished goods and goods for resale, biological assets” line above includes
changes in balances of goods produced and goods purchased for resale, changes in work in progress and
changes in biological assets excluding the effect of revaluation adjustments. This line also includes change
in depreciation as included in work in progress, finished goods and biological assets in the amount of
RR (546,679) (2020: RR (163,346)).
Payroll costs include salaries of RR 8,437,218 (2020: RR 6,841,137) and statutory pension contributions
of RR 1,847,658 (2020: RR 1,571,441).
The average number of employees employed by the Group during the year ended 31 December 2021 was
19,030 (19,344 for the year ended 31 December 2020).
21. Distribution and selling expenses
202
1
20
20
Transportation and loading services 3,857,111 4,055,104
Advertising 1,960,769 1,742,131
Payroll 1,718,304 1,701,474
Other services 773,172 725,053
Customs duties 550,318 17,291
Depreciation and amortization 219,171
163,534
Rent 172,035 172,732
Materials 162,713 158,811
Fuel and energy 130,437 135,763
Depreciation of right-of-use assets 34,847 27,062
Provision for impairment of receivables 25,226 13,592
Other 863,744 638,725
Change in selling and distribution expenses attributable to goods not sold 7,290 209,569
Total
10,475,137
9,760,841
Payroll costs include salaries of RR 1,364,609 (2020: RR 1,346,603) and statutory pension contributions
of RR 353,695 (2020: RR 354,871).
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
22. General and administrative expenses
202
1
20
20
Payroll 4,897,196 4,155,047
Depreciation 1,297,335 631,466
Services of professional organisations 1,263,971 523,805
Materials 760,384 106,362
Taxes, excluding income tax 627,768 457,069
Fuel and energy 257,048 104,290
Security 193,286 211,219
Rent 174,270
289,418
Depreciation of right-of-use assets 143,425 159,931
Bank services 135,729 170,517
Repair and maintenance 114,228 68,517
Insurance 92,674 57,890
Travelling expenses 90,071 145,379
Communication 40,884 44,023
Statutory audit fees 3,590 3,537
Other 884,039 248,979
Total
10,975,898
7,377,449
Payroll costs above include salaries of RR 4,065,961 (2020: RR 3,443,030) and statutory pension
contributions of RR 831,235 (2020: RR 712,017).
The total fees charged by the Company’s statutory auditor for the statutory audit of the annual financial
statements of the Company for the year ended 31 December 2021 amounted to RR 3,590 (2020:
RR 3,537). No fees charged by the Company’s statutory auditor for the year ended 31 December 2021 for
tax advisory services (2020: RR 607).
23. Other operating income, net
202
1
20
20
Reimbursement of operating expenses (government grants) 2,135,565 930,630
Realised deferred day-one gain (Note 15) 552,748 993,558
Operating foreign exchange gain/(loss), net 170,355 (465,210)
Amortization of deferred income to match related depreciation
(Note 18)
643,392
642,501
(Loss)/gain on disposal of property, plant and equipment (4,424) 335,640
Charitable donations and social costs (918,181) (411,179)
Gain on other investments 754,538 560,568
Fines and penalties receivable 60,238 450,000
The result from early repayment of the loan - (131,363)
Provisions for receivables, other liabilities and charges (1,082,407)
(179,796)
Gain on SolPro loans redemption 605,233
-
Loss on disposal of other assets (256,144) -
Loss on sale of goods and materials, except for main products (160,907) (24,314)
Lost harvest write-off (Note 9) (272,407) (188,536)
Loss on implementation of work, services (27,209) (118,230)
Payroll 11,941 (53,671)
Other shortages and losses 28,742 (146,916)
Other 93,104 99,335
Total
2,
33
4
,
177
2,293,017
Gain on other investments in 2021 is comprised out of dividends received from LLC GK Agro-Belogorie in
the amount of RR 754,538 (2020: RR 560,568).
172
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
23. Other operating income, net (continued)
The Group management excludes the following components of Other operating income/(expenses) from
Adjusted EBITDA calculation as non-recurring items (Note 29):
Non-recurring other operating adjustment
202
1
20
20
Realised deferred day-one gain (Note 15) 552,748 993,558
Amortization of deferred income to match related depreciation (Note 18) 643,392 642,501
Operating foreign exchange gain/(loss), net 170,355 (465,210)
(Loss)/ gain on disposal of property, plant and equipment (4,424) 335,640
Charitable donations and social costs (918,181) (411,179)
Gain on other investments 754,538 560,568
Fines and penalties receivable 60,238 450,000
The result from early repayment of the loan - (131,363)
Gain on SolPro loans redemption 605,233
-
Loss on disposal of other assets (256,144) -
Provisions for receivables, other liabilities and charges (1,082,407) (179,796)
Other (72,295) 18,910
Total
453,053
1,813,629
24. Interest expense and other finance income/ (costs), net
Interest expense comprised of the following:
202
1
20
20
Interest expense 10,566,994 6,448,154
Reimbursement of interest expense (government grants) (5,068,003) (1,643,159)
Interest expense, net
5,498,99
1
4,804,995
Other finance income/ (costs), net comprised of the following items:
202
1
20
20
Financial foreign exchange differences (loss)/ gain, net (111,001) (1,233,636)
Interest expense on leases (Note 12) (591,558) (580,276)
Other finance costs, net (2,797) (30,218)
Other financ
e
costs
, net
(705,356)
(1,844,130)
25. Goodwill
202
1
20
20
Carrying amount at 1 January
2,364,942
2,364,942
Acquisitions - -
Carrying amount at 31 December
2,364,942
2,364,942
The carrying amount of goodwill is allocated to the following CGUs:
31 December 202
1
31 December 20
20
Meat CGU 538,684 538,684
Oil Samara CGU 899,401 899,401
Agriculture Center CGU 199,276 199,276
Sugar CGU 502,083 502,083
Agriculture Primorie CGU 225,498 225,498
Total
2,364,942
2,364,942
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
25. Goodwill (continued)
Goodwill Impairment Test
The carrying amount of goodwill as at 31 December 2021 and 2020 was tested for impairment.
The recoverable amount of the Group’s cash-generating units has been determined based on a value-in-
use calculation using cash flow projections based on financial budgets approved by the Group management
covering a five-year period and the expected market prices for the Group’s key products for the same period
according to leading industry publications. Cash flows beyond the five-year period are projected with a long-
term growth rate of 4% per annum (31 December 2020: 3.5% per annum).
The assumptions used for value-in-use calculations to which the recoverable amount is most sensitive
were:
EBITDA margin*
Pre
-
tax discount rate
202
1
20
20
202
1
20
20
Oil Samara CGU 10.7%-12.9% 8.8%-13.5% 20,58% 12.45%
Agriculture Center CGU 33.9%-44.5% 31.8%-36.7% 11.91% 9.87%
Sugar CGU 30.5%-32.7% 20.5%-22.2% 12.18% 12.08%
Agriculture Primorie CGU 26.2%-32.8% 31.1%-34.5% 11.90% 10.15%
Meat CGU 9.1%-20.1% 26.0%-30.0% 9.36% 10.15%
* EBITDA margin is calculated as the sum of operating cash flows before income tax and changes in working capital divided by the
amount of cash flow received from trade customers.
2021 and 2020
As a result of the testing, no impairment losses were recognised for the goodwill allocated to each CGU.
26. Income tax
202
1
20
20
Current income tax charge 3,397,411 1,755,669
Deferred income tax charge / (credit) 124,733 (1,728,898)
Income tax expense
3,522,144
26,771
The Group companies domiciled in Russia were subject to an income tax rate of 20% (2020: 20%) of
taxable profits, except for profit on sales of agricultural produce taxable at 0% (2020: 0%).
Group entities operating in other tax jurisdictions were taxed at 0% and 12.5% (2020: 0% and 12.5%).
The current income tax charge represents a tax accrual based on statutory taxable profits. A reconciliation
between the expected and the actual taxation charge is as follows:
202
1
20
20
Profit before income tax: 44,955,996 24,323,498
- taxable at 0% 36,439,999 25,640,390
- taxable at 12.5% 911,511 1,575,368
- taxable at 20% 7,604,486 (2,892,260)
Theoretical income tax (credit)/charge calculated at the applicable tax rate of
20% and 12.5% (2020: 20% and 12.5%)
1,634,836
(381,531)
- non-taxable income (228,223) (533,881)
- non-deductible expenses 582,857 322,321
Deferred income tax charge in respect of withholding income tax on dividends
to be distributed
186,170
-
Withholding income tax on dividends distributed 262,599 599,940
Adjustments of income tax in respect of prior years and tax penalties 1,182,454 16,611
Other (98,549) 3,311
Income tax expense
3,522,144
26,771
173
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
26. Income tax (continued)
Differences between IFRS as adopted by the EU and local statutory taxation regulations give rise
to certain temporary differences between the carrying value of certain assets and liabilities for financial
reporting purposes and their tax bases. Deferred income taxes are attributable to the following:
1 January
2021
Deferred
income tax
assets/
(liabilities)
acquisition/
disposal
Deferred
income tax
credited/
(charged) to
other
comprehensi
ve
income
Deferred
income tax
credited/
(charged) to
profit or loss
31 December
2021
Tax effects of deductible/ (taxable)
temporary differences:
Property, plant and equipment (1,434,441) (213) - (960,000) (2,394,654)
Impairment of receivables (545,708) - - 714,493 168,785
Payables 188,089 - - (65,819) 122,270
Financial assets 478,645 - - (1,255,477) (776,832)
Inventory and biological assets 852,997 - - 276,826 1,129,823
Borrowings (2,301,061) - - 399,076 (1,901,985)
Tax loss carried-forwards 5,185,956 4,851 - 711,287 5,902,094
Lease liability 361,487 - - (17,402) 344,085
Right-of-use assets (380,062) - - (14,741) (394,803)
Withholding income tax on dividends
to be distributed
-
- -
(186,170) (186,170)
Other 673,217 - - 273,194 946,411
Net deferred income tax
asset/(liability)
3,079,119
4,638
-
(124,733) 2,959,024
Recognised deferred income tax
assets
3,566,168
4,835,268
Recognised deferred income tax
liabilities
(487,049)
(1,876,244)
1 January
2020
Deferred
income tax
assets/
(liabilities)
acquisition/
disposal
Deferred
income tax
credited/
(charged) to
other
comprehensi
ve
income
Deferred
income tax
credited/
(charged) to
profit or loss
31 December
2020
Tax effects of deductible/ (taxable)
temporary differences:
Property, plant and equipment (1,188,904) - - (245,537) (1,434,441)
Impairment of receivables (465,199) - - (80,509) (545,708)
Payables (180,134) - - 368,223 188,089
Financial assets 210,604 - (7,070) 275,111 478,645
Inventory and biological assets 268,649 - - 584,348 852,997
Borrowings (2,826,526) - - 525,465 (2,301,061)
Tax loss carried-forwards 5,020,048 (734) - 166,642 5,185,956
Lease liability 298,317 - - 63,170 361,487
Right-of-use assets (288,440) - - (91,622) (380,062)
Other 509,591 19 - 163,607 673,217
Net deferred income tax
asset/(liability)
1,358,006
(715)
(7,070)
1,728,898
3,079,119
Recognised deferred income tax
assets 1,852,983
3,566,168
Recognised deferred income tax
liabilities (494,977)
(487,049)
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
26. Income tax (continued)
Starting from 1 January 2017 the amendments to the Russian tax legislation became effective in respect
of tax loss carry-forwards. The amendments affect tax losses incurred and accumulated since 2007 that
have not been utilised. The 10-year expiry period for tax loss carry-forwards no longer applies. The
amendments also set limitation on utilisation of tax loss carry forwards that will apply during the period from
2017 to 2020, later this period was prolonged to 2024. The amount of losses that can be utilised each year
during that period is limited to 50% of annual taxable profit.
In the context of the Group’s current structure tax losses and current income tax assets of different
companies may not be set off against taxable profits and current income tax liabilities of other companies
and, accordingly, taxes may accrue even where there is a net consolidated tax loss. Therefore, deferred
income tax assets and liabilities are offset only when they relate to the same taxable entity.
31 December
202
1
31 December
20
20
Deferred
income
tax assets:
- Deferred income tax assets to be recovered after more than 12
months
2,657,466
2,576,008
- Deferred income tax assets to be recovered within 12 months 2,177,802 990,160
4,835,268
3,566,168
Deferred
income
tax liabilities:
- Deferred income tax liabilities to be settled after more than 12 months (1,649,258) (275,985)
- Deferred income tax liabilities to be settled within 12 months (226,986) (211,064)
(1,876,244)
(487,049)
Total net deferred
income
tax asset
2,959,024
3,079,119
Temporary differences associated with undistributed earnings of subsidiaries totalled RR 185,184,106
(2020: RR 105,199,322). No deferred income tax liability was recognised as the Group is able to control
the timing of reversal of those temporary differences and it is probable that they will not reverse in the
foreseeable future. For those temporary differences that will reverse in the foreseeable future
correspondent deferred income tax liabilities was recognized in the amount of RR 186,170 (2020: nil)
On 13 September 2021 the Board of Directors has approved a new dividend policy and increased minimal
payout ratio of dividends of the Company from 25% to 50%. As the dividends will be distributed from net
income of the reporting periods, they will be subject to current withholding income tax at the applicable rate.
Refer to Note 31 “Contingencies” for description of tax risks and uncertainties.
27. Related party transactions
Parties are generally considered to be related if the parties are under common control or if one party has
the ability to control the other party or can exercise significant influence or joint control over the other party
in making financial and operational decisions. In considering each possible related party relationship,
attention is directed to the substance of the relationship, not merely the legal form.
The Company is controlled by GRANADA CAPITAL CY LIMITED, incorporated in Cyprus, which owns
56.2% of the Company's shares. The parent entity which prepares consolidated financial statements of the
largest and smallest body of undertakings of which the Company forms part as a subsidiary undertaking,
is GRANADA CAPITAL CY LIMITED, which is incorporated in Cyprus with registered office at 205
Archiepiskopou Makariou, Victory House, Flat/Office 211 A, CY-3030, Limassol, Cyprus.
As at 31 December 2021 and 2020, the ultimate controlling party of the Company is Mr. Vadim Moshkovich
(the “Owner”), who ultimately controls 56.2% of the total issued shares as at 31 December 2021 (2020:
70.7%).
Key management personnel
Share option incentive scheme
In 2017 the Group initiated a share option incentive scheme for its top-management. Under this scheme
174
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
27. Related party transactions (continued)
the employees were granted GDRs of the Company provided they remained in their position up to a specific
date in the future. The amount of GDRs granted were dependent on the average market prices of GDRs
for the period preceding this date. Vesting period of the scheme ended by 31 December 2019. No expenses
or gains were recognized under the scheme for the years ended 31 December 2021 and 2020, no GDRs
of the Company were transferred to the employees under the scheme in 2021 (2020: 31,000 GDRs
amounting to RR 0).
As at 31 December 2021, the share-based payment reserve accumulated in equity as a result of the share-
based payment transactions amounted to RR 1,313,691 (2020: RR 1,313,691).
Other remuneration to key management personnel
Remuneration to 12 (2020: 12) representatives of key management personnel, included in payroll costs,
comprised short-term remuneration such as salaries, discretionary bonuses and other short-term benefits
totalling RR 1,608,744 including RR 235,239 payable to the State Pension Fund (2020: RR 1,211,653 and
RR 104,895 respectively).
The Company Directors’ remuneration
Included in the share-based compensation and other remuneration to Company Directors disclosed above,
are the Company Directors' fees, salaries and other short-term benefits totalling RR 1,187,689 including
RR 156,339 payable to the State Pension Fund (2020: RR 803,673 and RR 68,761 respectively) for the
year ended 31 December 2021.
Dividends paid to the Company Directors
During the year ended 31 December 2021 the dividends paid to the Company Directors amounted to
RR 1,478,145 (2020: RR 383,216).
Loan agreements with the Key management personnel
Balances and transactions under loan agreements with Key management personnel consist of the
following:
Transactions
31 December 202
1
31 December 20
20
Operating foreign exchange differences gain/ (loss), net (987) -
Balances
31 December 2021
31 December 2020
Trade accounts payable to related parties - 45
Entities controlled by the Owner
Dividends paid to entities controlled by the Owner
During the year ended 31 December 2021 the dividends paid to entities controlled by the Owner amounted
RR 14,026,673 (2020: RR 3,691,102).
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
27. Related party transactions (continued)
Balances and transactions with entities controlled by the Owner are presented in the table below:
31 December 202
1
31 December 20
20
Transactions
Sales of goods and services 2,840 198
Purchases of services 4,022 3,060
Charitable donations and social costs 7,088 208,762
Repayment of lease liabilities 168,681 156,047
Short-term loans repaid - 4,066,495
Interest expenses - 5,898
Interest paid - 13,249
31 December 202
1
31 December 20
20
Balances
Trade receivables from related parties, gross 24 24
Other receivables from related parties, gross 1,138 402
Prepayments to related parties, gross 82,435 76,209
Lease liabilities (1,331,054) (1,288,163)
Lease liabilities relate to the rent of Moscow office premises from a related party for an expected lease period of
20 years. Liability at 31 December 2021 and 31 December 2020 is accounted for in accordance with IFRS 16.
Associates
Balances and transactions with associates are presented in the table below:
31 December
202
1
31 December
20
20
Transactions
Purchases of services 559 370
Purchases of goods 18,409 -
31 December 202
1
31 December 20
20
Balances
Other receivables from related parties, gross 51,513 51,513
Trade receivables from related parties, gross 509 49
Provision for impairment of trade receivables from related parties (509) (49)
Trade and other payables (110) (63)
28. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the
weighted average number of ordinary shares in issue during the year excluding the effect of GDRs purchased
by the Company and held as treasury shares.
The Company has no significant dilutive potential ordinary shares; therefore, the diluted earnings per share
equals the basic earnings per share.
2021
2020
Profit for the year attributable to the Company’s equity holders 41,477,865 24,359,786
Weighted average number of ordinary shares in issue 26,906,270
26,905,237
Basic and diluted earnings per share (RR per share)
1
541.
57
905.
39
175
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
29. Segment information
Operating segments are components that engage in business activities that may earn revenues or incur
expenses, whose operating results are regularly reviewed by the chief operating decision maker (CODM)
and for which discrete financial information is available. The CODM is a person or a group of persons who
allocates resources and assesses the performance of the Group. The functions of CODM are performed
by the Board of Directors of ROS AGRO PLC.
Description of products and services from which each reportable segment derives its revenue
The Group is organised on the basis of four main business segments:
 Sugar – processing of raw sugar and production of sugar from sugar-beet;
 Meat – cultivation of pigs and meat processing;
 Agriculture – agricultural production (cultivation of sugar-beet, grain and other agricultural crops);
 Oil and Fat – vegetable oil extraction and processing.
Certain of the Group's businesses are not included within the reportable operating segments, as they are
not included in the reports provided to the CODM. The results of these operations are included in “Other”
caption. The Company, JSC Rusagro Group and LLC Group of Companies Rusagro that represent
the Group's head office and investment holding functions and earn revenue considered incidental
to the Group's activities are included in "Other" caption.
There were no changes in approach to the identification and measurement of operating segment profit or
loss, assets and liabilities.
Factors that management used to identify the reportable segments
The Group’s segments are strategic business units that focus on different customers. They are managed
separately because of the differences in the production processes, the nature of products produced and
required marketing strategies.
Financial information reviewed by the CODM includes:
 Quarterly reports containing information about income and expenses by business units (segments)
based on IFRS numbers, that may be adjusted to present the segments results as if the segments
operated as independent business units and not as the division within the Group;
 Quarterly reports with a breakdown of separate material lines of IFRS consolidated statement
of financial positions and IFRS consolidated statement of cash flows;
 In addition to the main financial indicators, operating data (such as yield, production volumes, cost
per unit, staff costs) and revenue data (volumes per type of product, market share) are also reviewed
by the CODM on a quarterly basis.
Measurement of operating segment profit or loss, assets and liabilities
The CODM assesses the performance of the operating segments based on the Adjusted EBITDA figure for
the period. Adjusted EBITDA figure is not an IFRS measure. Adjusted EBITDA is reconciled to IFRS
operating profit in this Note.
In 2020 the Group updated its EBITDA calculation within Other operating income/(expenses) outlining non-
recurring items in order to reflect more precisely the operating activities of the Company. Adjusted EBITDA
is defined as operating profit before taking into account:
 depreciation and amortisation;
 non-recurring other operating adjustment (Note 23);
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
29. Segment information (continued)
 the difference between the gain on revaluation of biological assets and agricultural produce
recognised in the year and the gain on initial recognition of agricultural produce attributable
to realised agricultural produce for the year and revaluation of biological assets attributable
to realised biological assets and included in cost of sales;
 share-basetion;
 provision/ (reversal of provision) for net realisable value of agricultural products in stocks
 provision / (reversal of provision) for impairment of loans issued.
Transactions between operating segments are accounted for based on financial information of individual
segments that represent separate legal entities.
Analysis of revenues by products and services
Each business segment except for the “Agriculture” and “Oil & Fat” segments is engaged in the production
and sales of similar or related products (see above in this note). The “Agriculture” segment in addition to its
main activity of growing and harvesting agricultural crops, was engaged in the cultivation of dairy cattle
livestock until October, 2021 when assets of Rusagro-Moloko were sold to a third party. Related revenue
from sales of milk and other livestock products was RR 116,611 (2020: RR 205,997). The “Oil and Fat”
segment in additional to its main activity of vegetable oil extraction and processing is engaged in the
production of milk products, including dry milk textures and cheese products. Related revenue from milk
products was RR 4,866,075 (2020: RR 3,787,225). Dairy Products segment are included in Oil and Fat
segment in 2021 financial year, 2020 financial year results were corrected accordingly.
For the amount of revenue from services, which comprise mainly grain elevator services and processing of
sugar beet for third party agricultural enterprises, see Note 19.
Geographical areas of operations
All the Group’s assets are located in the Russian Federation. Distribution of the Group’s sales between
countries on the basis of the customers’ country of domicile was as follows:
2021 2020
Russian Federation 157,316,736 107,677,304
Foreign countries 65,615,703 51,293,731
Total 222,932,439 158,971,035
Among key customers from foreign countries are Turkey, CIS countries, Switzerland, China, Japan.
Major customers
The Group has no customer or group of customers under common control who would account for more
than 10% of the Group’s consolidated revenue.
176
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
29. Segment information (continued)
Information about reportable segment adjusted EBITDA, assets and liabilities
Segment information for the reportable segments’ assets and liabilities as at 31 December 2021 and 2020 is set out below:
202
1
Sugar
Meat
Agriculture
Oil and Fat
Other
Eliminations
Total
Assets 110,264,224 86,800,384 68,869,840 127,096,588 255,378,779 (286,088,763) 362,321,052
Liabilities 89,631,913 56,471,863 40,321,089 85,525,732 135,978,028 (193,482,768) 214,445,857
Additions to non-current assets* 1,040,334 13,423,203 3,605,236 31,300,649 671,984 - 50,041,406
20
20
Sugar
Meat
Agriculture
Oil and Fat
**
Other
**
Eliminations
Total
Assets 58,114,485 77,953,893 59,110,299 52,514,406 176,044,412 (147,588,908) 276,148,587
Liabilities 41,201,441 51,419,029 34,167,859 50,459,015 58,684,587 (85,817,742) 150,114,189
Additions to non-current assets* 1,309,376 14,356,807 3,783,597 1,927,505 496,309 - 21,873,594
* Additions to non-current assets exclude additions to financial instruments, assets held for sale, goodwill and restricted cash.
** Dairy Products segment was included in Oil and Fat segment in 2021 financial year (Other segment in 2020), 2020 financial year results were corrected accordingly.
177
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
29. Segment information (continued)
Segment information for the reportable segments’ adjusted EBITDA for the years ended 31 December 2021 and 2020 is set out below:
20
2
1
Sugar
Meat
Agriculture
Oil and Fat
Other
Eliminations
Total
Sales (Note 19) 36,360,566 39,628,064 41,881,010 125,236,601 719,452 (20,893,254) 222,932,439
Net (loss) / gain on revaluation of biological assets and
agricultural produce (Note 9)
-
(370,486) 2,609,949 - - 1,169,846 3,409,309
Cost of sales (Note 20) (26,850,141) (33,744,934) (18,773,771) (108,855,523) (371,867) 19,347,955 (169,248,281)
incl. Depreciation
(2
,
766
,
162)
(3
,
965
,
508)
(2
,
547
,
072)
(2
,
877
,
234)
(9
,
186)
(85
,
607)
(12
,
250
,
769)
Net loss from trading derivatives - (5) - - - - (5)
Gross profit
9
,
510
,
425
5
,
512
,
639
25
,
717
,
188
16
,
381
,
078
347
,
585
(375
,
453)
57
,
093
,
462
Distribution and Selling, General and administrative
expenses (Notes 21, 22)
(3,958,396)
(5,728,548) (3,396,730) (7,463,073) (2,646,176) 1,741,888 (21,451,035)
incl. Depreciation and amortisation (72,862) (910,976) (357,854) (348,591) (90,102) 85,607 (1,694,778)
Other operating income/(expenses), net
(Note 23)
677,174
1,353,391 598,467 (726,058) 27,175,376 (26,744,173) 2,334,177
incl. Reimbursement of operating costs (government
grants)
576,559
516,862 546,424 495,720 - - 2,135,565
Incl. Non
-
recurring other operating adjustment)
(Note 23)
105
,
924
489
,
812
(37
,
563)
(1
,
368
,
049)
27
,
067
,
942
(25
,
805
,
013)
453
,
053
Reversal of provision for impairment of loans issued - - - - 4,574,481 - 4,574,481
Operating profit
6
,
229
,
203
1
,
137
,
482
22
,
918
,
925
8
,
191
,
947
29
,
451
,
266
(25
,
377
,
738)
42
,
551
,
085
Adjustments:
Depreciation and amortization included in Operating Profit 2,839,024 4,876,484 2,904,926 3,225,825 99,288 - 13,945,547
Non-recurring other operating adjustment (Note 23) (105,924) (489,812) 37,563 1,368,049 (27,067,942) 25,805,013 (453,053)
Net (loss)/ gain on revaluation of biological assets and
agricultural produce
-
370,486 (2,609,949) - - (1,169,846) (3,409,309)
Reversal of provision for impairment of loans issued - - - - (4,574,481) - (4,574,481)
Adjusted EBITDA*
8
,
962
,
303
5
,
894
,
640
23
,
251
,
465
12
,
785
,
821
(2
,
091
,
8
69
)
(742
,
571)
48
,
059
,
78
9
* Non-IFRS measure
178
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
29 Segment information (continued)
20
20
Sugar
Meat
Agriculture
Oil and Fat
**
Other
**
Eliminations
Total
Sales (Note 19) 28,112,519 32,434,214 34,347,506 79,726,251 631,108 (16,280,563) 158,971,035
Net (loss)/ gain on revaluation of biological assets and
agricultural produce (Note 9)
- (681,302) 3,582,520 - - 2,989,229 5,890,447
Cost of sales (Note 20) (21,238,160) (27,375,635) (19,059,850) (64,547,430) (477,625) 11,566,042 (121,132,658)
incl.
Depreciation
(2,605,853)
(3,716,132)
(2,861,216)
(542
,
826
)
(
10
,
639
)
(75,387)
(9,812,053)
Net gain from trading derivatives 10,552 - - - - - 10,552
Gross profit
6,884,911
4,377,277
18,870,176
1
5
,
178
,
821
153
,
483
(1,7
25
,
292
)
43,739,376
Distribution and Selling, General and administrative
expenses (Notes 21, 22) (3,399,788)
(2,713,324) (3,732,770) (6,730,675) (1,704,354) 1,142,621 (17,138,290)
incl. Depreciation and amortisation (83,738) (218,146) (386,864) (184,327) (184,305) 75,387 (981,993)
Other operating income/(expenses), net
(Note 23) 602,466
653,934 459,868 (533,103) 15,582,175 (14,472,323) 2,293,017
incl. Reimbursement of operating costs (government
grants) 179,564
104,836 299,020 347,210 - - 930,630
incl. Non
-
recurring other operating adjustment)
(Note 23)
425,102
459,983
71,372
(732
,
371
)
1
5,526
,
199
(13,936,656)
1,813,629
Provision for impairment of loans issued - - - - (5,070,598) - (5,070,598)
Operating profit
4,087,589
2,317,887
15,597,274
7
,
915
,
043
8
,960
,
706
(15,05
4
,
994
)
23,823,505
Adjustments:
Depreciation and amortisation included in Operating Profit 2,689,591 3,934,278 3,248,080 727,153 194,944 - 10,794,046
Non-recurring other operating adjustment
(Note 23) (425,102)
(459,983) (71,372) 732,371 (15,526,199) 13,936,656 (1,813,629)
Net (loss)/ gain on revaluation of biological assets and
agricultural produce -
681,302 (3,582,520) - - (2,989,229) (5,890,447)
Provision for impairment of loans issued - - - - 5,070,598 - 5,070,598
Adjusted EBITDA*
6,352,078
6,473,484
15,191,462
9,374
,
567
(1,
299
,
951
)
(
4,107
,
567
)
31,984,073
* Non-IFRS measure
** Dairy Products segment was included in Oil and Fat segment in 2021 financial year (Other segment in 2020), 2020 financial year results were corrected accordingly.
179
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
30. Financial risk management
Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk (including commodity price risk,
foreign exchange risk, cash flow interest rate risk and fair value interest rate risk), credit risk and liquidity
risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets
and seeks to minimise potential adverse effects on the Group’s financial performance. The Group does not
use derivative financial instruments to hedge its risk exposure, except in 2020 for raw sugar commodity
price risk management as described below.
Operating risk management is carried out on the level of the finance function of the Group’s business
segments with overall monitoring and control by management of the Group. The management is
implementing principles for overall risk management, as well as policies covering specific areas, such as
foreign exchange risk, interest-rate risk, credit risk, use of non-derivative financial instruments, and
investing excess liquidity.
Credit risk
The credit risk represents the risk of losses for the Group owing to default of counterparties on obligations
to transfer to the Group cash and cash equivalents and other financial assets.
Activities of the Group that give rise to credit risk include granting loans, making sales to customers on
credit terms, placing deposits with banks and performing other transactions with counterparties giving rise
to financial assets.
The Group’s maximum exposure to credit risk at the reporting date without taking account of any collateral
held is as follows:
31 December 202
1
31 December 20
20
Long
-
term financial
assets
Bonds held to collect (Note 10) 19,900,000 19,900,000
Bank deposits (Note 10) 14,071,101 14,070,635
Investments in third parties (Note 10) 8,556,556 8,556,556
Bonds held for trading (Note 10) - 165,129
Total long
-
term financial assets
42,527,657
42,692,320
Short
-
term financial assets
Cash and cash equivalents (Note 3) 46,462,179 11,866,798
Bank deposits (Note 4) 18,519,392 -
Financial assets within trade and other receivables (Note 5) 12,000,318 8,829,801
Loans issued (Note 4) 2,119,893 19,137,343
Interest receivable on long-term bonds held to collect (Note 4) 221,734 218,057
Bonds held to collect (Note 4) 140,741 197,523
Short-term restricted cash 47 143,637
Other short-term investments (Note 4) - 22,692
Interest receivable on bonds held for trading (Note 4) - 7,908
Total short
-
term financial assets
79,464,304
40,423,759
Total
121,991,961
83,116,079
As at 31 December 2021 the Group has collateral against RR 56,176 of its trade receivables (31 December
2020: RR 46,887). The Group has geographical concentration of credit risk in the Russian market since the
majority of the Group’s customers conduct their business in the Russian Federation.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
30. Financial risk management (continued)
Credit risk grading system. For measuring credit risk and grading financial instruments by the amount of
credit risk, the Group applies two approaches – an Internal Risk-Based (IRB) rating system or risk grades
estimated by external international rating agencies (Standard & Poor’s – “S&P”, Fitch, Moody’s). Internal
and external credit ratings are mapped on an internally defined master scale with a specified range of
probabilities of default as disclosed in the table below:
Master scale credit risk grade Corresponding internal
ratings
Corresponding ratings of
external international rating
agencies
Corresponding
PD interval
Excellent 1 – 6 AAA to BB+ 0.01% - 0.05%
Good 7 – 14 BB to B+ 0.06% - 1%
Satisfactory 15 – 21 B, B- 1% - 5%
Special monitoring 22 – 25 CCC+ to CC- 6% - 99.9%
Default 26 – 30 C, D-I, D-II 100%
Each master scale credit risk grade is assigned a specific degree of creditworthiness:
 Excellent – strong credit quality with low expected credit risk;
 Good – adequate credit quality with a moderate credit risk;
 Satisfactory – moderate credit quality with a satisfactory credit risk;
 Special monitoring – facilities that require closer monitoring and remedial management; and
 Default – facilities in which a default has occurred.
The IRB system is designed internally, and ratings are estimated by management. Various credit-risk
estimation techniques are used by the Group depending on the class of the asset. There are three
commonly used types of such systems:
 Model-based – In this system, credit risk ratings are assigned by internally developed statistical
models with the limited involvement of credit officers. Statistical models include qualitative and
quantitative information that shows the best predictive power based on historical data on defaults.
 Expert judgement-based – In this system, credit risk ratings are assigned subjectively by experienced
credit officers based on internally developed methodology and different qualitative and quantitative
factors. This approach is based on expert methodology and judgements rather than on sophisticated
statistical models.
 Hybrid – This rating system is a combination of the two systems above. It is developed by using
historical data combined with expert input.
The Group applies IRB systems for measuring credit risk for the following financial assets: cash and cash
equivalents, bank deposits, bonds held for trading.
The table below discloses the credit quality of cash and cash equivalents balances and bank deposits
based on credit risk grades at 31 December 2021.
Cash and cash
equivalents
Bank
deposits
Total
- Excellent 46,444,018 32,590,493 79,034,511
- Good 18,161 - 18,161
Total cash and cash equivalents, excluding cash on
hand
46,462,179
32,590,493
79,052,672
180
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
30. Financial risk management (continued)
The table below discloses the credit quality of cash and cash equivalents balances and bank deposits
based on credit risk grades at 31 December 2020.
Cash and cash
equivalents
Bank
deposits
Total
- Excellent 11,808,294 14,070,635 25,878,929
- Good 58,504 - 58,504
Total cash and cash equivalents, excluding cash on
hand
11,866,798
14,070,635 25,937,433
The credit quality of cash and cash equivalents, bank deposits and restricted cash balances may be
summarised as:
31 December 20
2
1
31 December 20
20
Rating agency
Rating
Balance
Rating
Balance
Alfa Bank Fitch Ratings bbb- 34,216,104 bb+ 10,243,340
Bank GPB S&P bbb- 18,623,438 bb+ 149
Vnesheconombank S&P bbb- 14,071,107 bbb 14,070,658
Rosselkhozbank Moody's Ba1 9,090,345 Ba1 38,392
Sberbank Fitch Ratings bbb 3,014,725 bbb 670,168
Credit Suisse Fitch Ratings a- 16,821 a- 1,575
Bank NCC Fitch Ratings bbb 1,113 bbb 1,002,633
Rosbank Fitch Ratings bbb 858 bbb 2,275
Other - - 18,208 - 51,880
Total cash at bank, bank deposits (Note 3,10) and
restricted cash
79,052,719
26,
08
1
,
070
Expected credit loss measurement. Expected credit loss is a probability-weighted estimate of the present
value of future cash shortfalls. An expected credit loss measurement is unbiased and is determined by
evaluating a range of possible outcomes. Expected credit loss measurement is based on four components
used by the Group: Probability of Default, Exposure at Default, Loss Given Default and Discount Rate.
Exposure at Default is an estimate of exposure at a future default date, taking into account expected
changes in the exposure after the reporting period, including repayments of principal and interest, and
expected drawdowns on committed facilities.
 the borrower is more than 90 days past due on its contractual payments;
 international rating agencies have classified the borrower in the default rating class;
 the borrower meets the unlikeliness-to-pay criteria listed below:
- the borrower is deceased;
- the borrower is insolvent;
- it is becoming likely that the borrower will enter bankruptcy.
Forward-looking information incorporated in the ECL models. The Group identified certain key
economic variables that correlate with developments in credit risk and ECLs. As with any economic
forecast, the projections and likelihoods of occurrence are subject to a high degree of inherent uncertainty,
and therefore the actual outcomes may be significantly different to those projected. The Group considers
these forecasts to represent its best estimate of the possible outcomes and has analysed the non-linearities
and asymmetries within the Group's different portfolios to establish that the chosen scenarios are
appropriately representative of the range of possible scenarios. The Group regularly reviews its
methodology and assumptions to reduce any difference between the estimates and the actual loss of credit.
Such backtesting is performed at least once a year.
The results of backtesting the ECL measurement methodology are communicated to Group Management and
further steps for tuning models and assumptions are defined after discussions between authorised persons.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
30. Financial risk management (continued)
The Group did not recognise any expected credit loss allowance in respect of loans issued because of
significant excess of its collateral value over the gross carrying value of these loans.
Neither past due nor impaired trade receivables relate to the customers who have a long-standing
relationship with the Group and a sound trading history.
Concentrations of trade receivables by type of customer are as follows:
31 December 202
1
31 December 20
20
Distribution and retail outlets 7,248,772
5,095,469
Manufacturers (candy, juice and other) 4,258,210 3,213,548
Other not categorised 40,524 123,094
Total trade receivables
11,547,506
8,432,111
The majority of the customers do not have independent ratings. To minimize the risk of default on payment
of amounts due by counterparties for supplied goods or rendered services the Group regularly revises the
maximum amount of credit and grace periods for each significant customer.
Financial assets that are impaired as at the reporting date
The table below shows the analysis of impaired financial assets:
31 December
202
1
31 December 20
20
Nominal value
Impairment
Nominal Value
Impairment
Impaired receivables (Note 5):
- trade receivables 1,777,388 (747,171) 1,141,874 (76,845)
- other receivables 95,204 (95,204) 81,184 (71,477)
Total
1,872,592
(842,375)
1,223,058
(148,322)
Financial assets are impaired when there is evidence that the Group will not receive the full amount due or
receive the full amount later than contracted. Factors to consider include whether the receivable is past
due, the age of the receivable and past experience with the counterparty.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through
an adequate amount of committed credit facilities. Due to the dynamic nature of the underlying businesses,
Group Treasury aims to maintain flexibility in funding by keeping committed credit lines available. The
Group Treasury analyses the net debt position as disclosed in Note 15.
The table below analyses the Group’s financial liabilities into relevant maturity groupings based
on the remaining period at the reporting date to the contractual maturity date:
Carrying
value
Contractual undiscounted cash flows
At 31 December 20
2
1
Total
202
2
202
3
202
4
-
202
6
After
202
6
Borrowings and loans
(Note 15)
- principal amount 170,527,920 194,961,620 107,310,675 9,003,566 25,788,953 52,858,426
- interest 2,195,945 25,505,128 3,620,333 2,472,856 4,397,629 15,014,310
Lease liabilities (Note 12) 6,665,845 7,643,740 611,369 569,575 1,557,975 4,904,821
Financial liabilities within
trade and other payables
(Note 16)
11,222,919 11,222,919 11,222,919
Total
190,612,
62
9
239,333,
40
7
122,765,29
6
12,045,997
31,744,557
72,777,557
181
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
30. Financial risk management (continued)
Carrying
value
Contractual undiscounted cash flows
At 31 December 20
20
Total
202
1
202
2
202
3
-
202
5
After
202
5
Borrowings and loans
(Note 15)
- principal amount 113,357,741 139,770,853 50,404,705 16,133,646 20,723,547 52,508,955
- interest 1,571,454 28,810,356 3,798,805 2,589,672 5,954,667 16,467,212
Lease liabilities (Note 12) 5,799,367 11,329,467 976,982 917,680 2,380,704 7,054,101
Financial liabilities within
trade and other payables
(Note 16)
11,092,041 11,092,041 11,092,041 - - -
Total
131,820,603
191,002,717
66,272,533
19,640,998
29,058,918
76,030,268
The exchange rates used for calculating payments for bank borrowings denominated in currencies other
than Russian Roubles:
31 December 202
1
31 December 20
20
US Dollar 74.2926 73.8757
Euro 84.0695 90.6824
In addition, the Group has commitments as disclosed in Note 32.
Market risk
Market risk, associated with financial instruments, is the risk of change of fair value of financial instruments
or the future cash flows expected on a financial instrument, owing to change in interest rates, exchange
rates, prices for the commodities or other market indicators. From the risks listed above
the Group is essentially exposed to the risks associated with changes in interest rates, exchange rates and
commodity prices.
Cash flow and fair value interest rate risk
The Group’s income and operating cash flows are exposed to changes in market interest rates.
The Group’s interest rate risk arises from short-term and long-term borrowings. Borrowings at variable rates
expose the Group to cash flow interest rate risk. Borrowings at fixed rates expose the Group to fair value
interest rate risk. The Group’s policy is to maintain most of its borrowings in fixed rate instruments. The
Group does not have formal policies and procedures in place for management of fair value interest rate
risk.
Interest rates under most of the Group’s borrowings are fixed. However, the terms of the contracts stipulate
the right of the creditor for a unilateral change of the interest rate (both increase and decrease), which can
be based, among other triggers, on a decision of the CBRF to change the refinancing rate.
Bank deposits and loans issued bear fixed interest rate and therefore are not exposed to cash flow interest
rate risk.
The Group analyses its interest rate exposure on a continuous basis. Various scenarios are considered
taking into consideration refinancing, renewal of existing positions and alternative financing. Based on these
scenarios, the Group calculates the impact on profit and loss of a defined interest rate shift.
For each scenario, the same interest rate shift is used for all currencies. The scenarios are run only for
liabilities that represent the major interest-bearing positions.
During the year ended 31 December 2021 and 31 December 2020 the Group was not exposed to the cash
flow interest rate risk as all of the Group’s borrowings had fixed rates.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
30. Financial risk management (continued)
Foreign exchange risk
As at 31 December 2021 and 2020, foreign exchange risk arises on cash in banks, short-term investments,
trade and other receivables, borrowings and trade and other payables denominated in foreign currency
(Notes 3, 4, 5, 15 and 16).
At 31 December 2021, if the Russian Rouble had weakened/strengthened by 30% (31 December 2020:
30%) against the US dollar with all other variables held constant, the Group’s profit before taxation and
equity would have been RR 732,838 (2020: RR 562,822) higher/lower.
At 31 December 2021 if the Russian Rouble had weakened/strengthened by 30% (31 December 2020:
30%) against the Euro with all other variables held constant, the Group’s profit before taxation and equity
would have been RR 20,922 (2020: RR 170,149) lower/higher.
Purchase price risk
The Group is exposed to equity securities price risk arising on investments held by the Group and classified
in the consolidated statement of financial position at fair value through other comprehensive income (Note
10). The Group does not manage its price risk arising from investments in equity securities.
Sales price risk
Changes in white sugar prices are closely related to changes in world raw sugar prices. The storage
facilities of own sugar plants permit to build up stocks of white sugar to defer sales to more favourable price
periods.
The Group is exposed to financial risks arising from changes in meat and crops prices (Note 9).
Fair value estimation
The estimated fair values of financial instruments have been determined by the Group using available
market information, where it exists, and appropriate valuation methodologies. However, judgement is
necessarily required to interpret market data to determine the estimated fair value. The Russian Federation
continues to display some characteristics of an emerging market and economic conditions continue to limit
the volume of activity in the financial markets. Market quotations may be outdated or reflect distress sale
transactions and therefore not represent fair values of financial instruments. Management has used all
available market information in estimating the fair value of financial instruments.
Financial assets carried at amortised cost
The fair value of floating rate instruments is normally their carrying amount. The estimated fair value
of fixed interest rate instruments is based on estimated future cash flows expected to be received
discounted at current interest rates for new instruments with similar credit risk and remaining maturity.
Discount rates used depend on credit risk of the counterparty.
Liabilities carried at amortised cost
The fair value of floating rate instruments is normally their carrying amount. The estimated fair value
of fixed interest rate instruments with stated maturity was estimated based on expected cash flows
discounted at current interest rates for new instruments with similar credit risk and remaining maturity.
182
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
30. Financial risk management (continued)
Financial instruments by measurement categories and fair values as at 31 December 2021
Amortised
cost
At fair value
through other
comprehen-
sive income
At fair value
through
profit or loss
Total
carrying
amount
Fair value
Financial assets
Cash and cash equivalents (Note 3) 46,462,179 - - 46,462,179 46,462,179
Short-term restricted cash 47 - - 47 47
Short-term loans issued (Note 4) 2,119,893 - - 2,119,893 2,119,893
Interest receivable on bonds held to
collect (Note 4)
221,734
- - 221,734 173,397
Bank deposits (Note 4) 18,519,392 - - 18,519,392 18,519,392
Bonds held to collect (Note 4) 140,741 - - 140,741 140,741
Financial assets within trade and
other receivables (Note 5)
12,000,318
- - 12,000,318 12,000,318
Total
short
-
term financial assets
79,464,304
-
-
79,464,304
79,415,967
Investments in third parties (Note 10) - 8,556,556 - 8,556,556 8,556,556
Bonds held to collect (Note 10) 19,900,000 - - 19,900,000 19,900,000
Bank deposits (Note 10) 14,071,101 - - 14,071,101 14,002,700
Total long
-
term financial assets
33,971,101
8,556,556
-
42,527,657
42,459,256
Total financial assets
113,435,405
8,556,556
-
121,991,961
121,875,223
Financial liabilities
Short-term borrowings (Note 15) 108,748,840 - - 108,748,840 108,748,840
Financial liabilities within trade and
other payables (Note 16)
11,222,919
- - 11,222,919 11,222,919
Total short
-
term financial liabilities
119,
971,759
-
-
119,
971,759
119,
971,759
Long-term borrowings (Note 15) 63,975,025 - - 63,975,025 63,975,025
Total long
-
term financial liabilities
63,975,025
-
-
63,975,025
63,975,025
Total financial liabilities
183,
946,784
-
-
183,
946,784
183,
946,784
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
30. Financial risk management (continued)
Financial instruments by measurement categories and fair values as at 31 December 2020
Amortised
cost
At fair value
through other
comprehen-
sive income
At fair value
through
profit or loss
Total
carrying
amount
Fair value
Financial assets
Cash and cash equivalents (Note 3) 11,866,798 - - 11,866,798 11,866,798
Short-term restricted cash 143,637 - - 143,637 143,637
Short-term loans issued (Note 4) 19,137,343 - - 19,137,343 19,214,704
Interest receivable on bonds held to
collect (Note 4) 218,057
- - 218,057 135,320
Interest receivable on bonds held for
trading (Note 4) -
- 7,908 7,908 7,908
Bonds held to collect (Note 4) 197,523 - - 197,523 197,523
Other short-term investments (Note
4) - 22,692 22,692 22,692
Financial assets within trade and
other receivables (Note 5) 8,829,801
- - 8,829,801 8,829,801
Total short
-
term financial assets
40,393,159
-
30,600
40,423,759
40,418,383
Bonds held for trading (Note 10) - - 165,129 165,129 165,129
Investments in third parties (Note 10) - 8,556,556 - 8,556,556 8,556,556
Bonds held to collect (Note 10) 19,900,000 - - 19,900,000 19,900,000
Bank deposits (Note 10) 14,070,635 - - 14,070,635 13,961,012
Total long
-
term financial assets
33,970,635
8,556,556
165,129
42,692,320
42,582,697
Total financial assets
74,363,794
8,556,556
195,729
83,116,079
83,001,080
Financial liabilities
Short-term borrowings (Note 15) 51,753,475 - - 51,753,475 51,753,475
Financial liabilities within trade and
other payables (Note 16) 11,092,041
- - 11,092,041 11,092,041
Total short
-
term financial liabilities
62,845,516
-
-
62,845,516
62,845,516
Long-term borrowings (Note 15) 63,175,720 - - 63,175,720 63,175,720
Total long
-
term financial
liabilities
63,175,720
-
-
63,175,720
63,175,720
Total financial liabilities
126,021,236
-
-
126,021,236
126,021,236
For the purposes of measurement, IFRS 9 “Financial Instruments” classifies bonds held to collect, loans
issued, long-term borrowings to Level 2 of the fair value hierarchy. Other financial instruments except bonds
held for trading are classified to level 3 of the fair value hierarchy.
Fair value of bonds held-for trading is derived from open active markets and is within level 1 of the fair value
hierarchy.
The fair values in level 2 and level 3 of the fair value hierarchy were estimated using the discounted cash
flows valuation technique. The fair value is based on discounting of cash flows using 10.7-15.6% (2020:
9.9-20.3%) discount rate.
The valuation technique, inputs used in the fair value measurement for level 3 measurements and related
sensitivity to reasonably possible changes in those inputs in relation to the investment at fair value
through other comprehensive income (Note 10) are as follows at 31 December 2021:
Inputs used
Range of inputs
(weighted average)
Reasonable
change
Sensitivity
of fair value
measurement
Investment at FV through OCI
EBITDA Margin 17 – 24% ± 1% ± 462,808
Terminal growth
rate
1.8% ± 0.5% ± 120,515
WACC 15.6% ± 0.5% ± 225,302
183
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
30. Financial risk management (continued)
The valuation technique, inputs used in the fair value measurement for level 3 measurements and related
sensitivity to reasonably possible changes in those inputs in relation to the investment at fair value through
other comprehensive income (Note 10) are as follows at 31 December 2020:
Inputs used
Range of inputs
(weighted average)
Reasonable
change
Sensitivity
of fair value
measurement
Investment at FV through OCI
EBITDA Margin 16 – 22% ± 1% ± 523,765
Terminal growth
rate
1.8% ± 0.5% ± 161,302
WACC 12.0% ± 0.5% ± 274,518
Sensitivity of fair value to valuation inputs for financial assets and financial liabilities, if changing one or
more of the unobservable inputs to reflect reasonably possible alternative assumptions would not be
significant. For this purpose, significance was judged with respect to profit or loss, and total assets or total
liabilities, or, when changes in fair value are recognised in other comprehensive income, total equity.
There were no changes in the valuation technique for level 3 recurring fair value measurements during the
year ended 31 December 2021 (2020: none).
Capital management
The primary objective of the Group’s capital management is to maximize participants’ return while
sustaining a reasonable level of financial risks. The Group does not have a quantified target level
of participants’ return or capital ratios. To fulfil capital management objectives while providing for external
financing of regular business operations and investment projects, the Group management compares
expected return of these operations and projects with the costs of debt and maintains prudent financial risk
management as described above.
The Group companies complied with all externally imposed capital requirements throughout 2021 and
2020.
31. Contingencies
Tax legislation
Russian tax and customs legislation which was enacted or substantively enacted at the end of the reporting
period, is subject to varying interpretations when being applied to the transactions and activities of the
Group. Consequently, tax positions taken by management and the formal documentation supporting the
tax positions may be challenged tax authorities. Russian tax administration is gradually strengthening,
including the fact that there is a higher risk of review of tax transactions without a clear business purpose
or with tax incompliant counterparties. Fiscal periods remain open to review by the authorities in respect of
taxes for three calendar years preceding the year when decisions about the review was made. Under
certain circumstances reviews may cover longer periods.
Russian transfer pricing legislation is generally aligned with the international transfer pricing principles
developed by the Organisation for Economic Cooperation and Development (OECD), with certain specific
features. Transfer pricing legislation provides for the possibility of additional tax assessment for controlled
transactions (transactions between related parties and certain transactions between unrelated parties) if
such transactions are not on an arm’s length basis. Management has implemented internal controls to be
in compliance with current transfer pricing legislation.
Tax liabilities arising from controlled transactions are determined based on their actual transaction prices.
It is possible, with the evolution of the interpretation of the transfer pricing rules, that such prices could be
challenged. The impact of any such challenge cannot be reliably estimated; however, it may be significant
to the financial position and/or the Group’s operations.
ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
31. Contingencies (continued)
Starting from 2015 new rules were put in place establishing when foreign entities can be viewed as managed
from Russia and consequently can be deemed Russian tax residents. Russian tax residency means that such
legal entity’s worldwide income will be taxed in Russia.
The tax liabilities of the Group were determined on the assumption that the foreign companies of the Group were
not subject to applicable Russian taxes, because they did not have a permanent establishment in Russia and
were not Russian profit tax residents by way of application of the new tax residency rules. However, the Russian
tax authorities may challenge this interpretation of relevant legislation in regard to the foreign companies of the
Group. The impact of any such challenge cannot be reliably estimated currently; however, it may be significant
to the financial position and/or the overall operations of the Group.
The Group’s Management believes that its interpretation of the relevant legislation is appropriate, and the
Group’s tax and customs positions will be sustained. Accordingly, at 31 December 2021 no provision for potential
tax liabilities had been recorded (2020: no provision). Management will vigorously defend the Group's positions
and interpretations that were applied in determining taxes recognised in these consolidated financial statements
if these are challenged by the authorities.
Social obligations
Some production companies of the Group have collective agreements signed with the employees. Based on
these contracts the companies make social payments to the employees. The amounts payable are determined
in each case separately and depend primarily on performance of the company. These payments do not satisfy
the liability recognition criteria listed in IAS 19, “Employee Benefits”. Therefore, no liability for social obligations
was recognised in these consolidated financial statements.
Legal proceedings
From time to time and in the normal course of business, claims against the Group may be received. On the basis
of its own estimates, management is of the opinion that no material losses will be incurred in respect of claims.
There are no current legal proceedings or other claims outstanding which could have a material effect on the
results of operations and financial position of the Group.
Operating environment of the Group
The uncertainties related to the operating environment of the Group are described in Note 1.
32. Commitments
Contractual capital expenditure commitments
As at 31 December 2021 the Group had outstanding contractual commitments in respect of purchases
or construction of property, plant and equipment in the amount of RR 6,705,623 (31 December 2020
RR: 6,974,843).
33. Subsequent events
Dividends. Subsequent to the year ended 31 December 2021, the Board of Directors recommends the payment
of additional dividends out of the profits for the year 2021 to the amount of RR 11,928,542. Given that the
Company has already paid interim dividends for 2021 to the amount of RR 8,755,947, the total dividend out of
the profits for 2021 would amount to RR 20,684,489. The dividend per share will be fixed at the dividend record
date set on 1 April 2022. The proposed dividend is subject to approval by the shareholders at the Annual General
Meeting. These consolidated financial statements do not reflect the dividends that have not been approved on
the reporting date.
184
Appendix
APPENDIX
RUSAGROGROUP.RU/EN

ROS AGRO PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(IN THOUSANDS OF RUSSIAN ROUBLES, UNLESS NOTED OTHERWISE)
33. Subsequent events (continued)
From 1 January 2022, Timur Lipatov became Rusagro’s Chief Executive Director. Contract of Maxim Basov,
previous CEO, expired on 31 December 2021.
As part of bankruptcy procedures the Group transferred back to the insolvency estate the interest on loans
paid by Solnechnye Producty during 2021 in the amount of RR 2,354,811. Cash is expected to be received
back until 30 June 2022.
CONTACT INFORMATION
Full corporate name
Public Company Limited by Shares
ROS AGRO PLC
Abbreviated name
ROS AGRO PLC
Full corporate name in Russian
РОС АГРО ПЛС
Legal address
ROS AGRO PLC
25 Aphrodite Street, 3rd floor, Office 300,
CY–1060 Nicosia, Cyprus
LLC Rusagro Group of Companies
Studenetskaya Naberezhnaya street 20V.,
office 303, Tambov
Contact for shareholders and investors
Svetlana Kuznetsova
Tel.: +7 495 363 16 61
Email: ir@rusagrogroup.ru
Independent auditors in Russian Federation
JSC KPMG
10 Presnenskaya Nab., Moscow, Russia, 123112
Independent auditors in Cyprus
KPMG Limited
Chartered Accountants
14 Esperidon Street, 1087 Nicosia, Cyprus
Depository
The Bank of New York Mellon
One Wall Street, New York, New York 10286,
United States of America
Company website
Russian: www.rusagrogroup.ru
English: www.rusagrogroup.ru/en
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Appendix
APPENDIX
RUSAGROGROUP.RU/EN