IMC S A : Half yearly fcial & audit reports / ltd reviews - EN

Interim report

For the six months ended 30 June 2022

Interim report 2Q2022

CONTENTS
Single management report
War in Ukraine	3
Financial and operational results	10
Alternative performance measures	16
Selected Financial Data	17
Condensed consolidated interim financial statements
Management responsibility statement	39
Condensed consolidated interim statement of comprehensive income	46
Condensed consolidated interim statement of financial position	47
Condensed consolidated interim statement of changes in equity	48
Condensed consolidated interim statement of cash flows	49
Notes to the Condensed consolidated interim financial statements	51

2

Interim report 2Q2022

Single management report

War in Ukraine

Single management report

War in Ukraine

On 24 February 2022 Russian troops invaded Ukraine and Russia has started a full-scale war against Ukraine.

Production sites and lands cultivated by enterprises of IMC S.A. are located in Chernihiv, Sumy and Poltava regions of Ukraine, where active hostilities were underway. Part of Chernihiv and Sumy regions were occupied, but the Armed Forces of Ukraine managed to liberate these regions. As of the date of publication of this Report all the Group's assets are located in the de-occupied territories.

As a result, the Group's business activities have been affected as follows:

• None of the Group's critical facilities or infrastructure has suffered any significant damage.
• All of the Group's inventories are in good condition and are in safe storage.
• As of today all the Group's assets are located in the de-occupied territories.
• The Group does not have a labor shortage and has managed to retain its staff. The Group's key personnel and top managers continue working. Most of the staff at the enterprises returned to work in the office or in production.
• The Group's companies continue to pay all taxes required by law and to comply with all business rules, regardless of martial law.
• The Group provides comprehensive assistance and support in the fight against the occupier. IMC provides all available material resources of the company, which are necessary for the protection of our Motherland and the people of Ukraine. 86 employees of IMC enterprises defend Ukraine in the ranks of the Armed Forces of Ukraine.
• Till August 2022 Black Sea ports in Ukraine remained blocked for export activities. Alternative logistics chains for grain exports through seaports of other neighboring countries were developed by IMC team, but such logistics is very challenging, with numerous bottlenecks along the road making it impossible to recover any sizable export volumes, as well as with vast amount of capital expenditures required to establish the efficient logistics infrastructure on new export routes. It results in low export volumes of grain since 24 February 2022.
• On 15 May 2022 the most difficult spring sowing in the entire 15-year history of IMC company was completed. A total of 19.2 thousand hectares of sunflower and 50.2 thousand hectares of corn were sown. Given the 18.4 thousand hectares of winter wheat sown in the fall of 2021, as of today 73% of the Company's land bank is sown. The rest of the lands in the Chernihiv region were under active hostilities, this area was inspected for explosives (mines, blind artillery and mortar shells, missile remnants, etc) and we plan to return these lands to production in the fall.
• On 21 August 2022 IMC completed the harvesting of winter wheat. Crop was harvested from an area of 18.3 thousand hectares with an average yield of 6.7 t/ha, which is a record result for all years of the company's economic activity, and is 18% higher than wheat yield in IMC in 2021.

Management has identified the following specific risks to the Group's activities due to the war:

• Destruction of fixed assets;
• Loss of stocks of inventories;
• Loss of access to the assets in case of occupation of territories;
• Employee-relatedrisks;
• Disruption of logistics routes in Ukraine;
• Inability to conduct export activities;
• Potential cyber attack.

The Group has no influence on most factors, but the Management has taken possible precautionary measures:

• Part of the mobile machineries was moved from the northern branches to other regions of the Group, as there is a risk of re-occupation.
• Training work was carried out with the staff on behavior and personal safety in wartime, certain work processes were reconfigured to ensure the safety of employees in the performance of their duties, the number of fire protection equipment and first aid kits at workplaces was increased.
• Cyber attack response plans have been developed.

3

Interim report 2Q2022

Single management report

Financial and operational results

Financial and operational results

Financial and operational results

The following table sets forth the Company's results of operations derived from the Consolidated financial statements:

(in thousand USD)

CONTINUING OPERATIONS

Revenue

Gain from changes in fair value of biological assets and agricultural produce, net

Cost of sales

GROSS PROFIT

Administrative expenses

Selling and distribution expenses

Other operating income

Other operating expenses

Write-offs of property, plant and equipment

OPERATING PROFIT/(LOSS)

Financial expenses, net

Effect of lease of right-of-use assets

Foreign currency exchange (loss)/gain, net

PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS

Income tax expenses, net

NET PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS

For the six	For the six
months ended	months ended	Changes, %
30 June 2022	30 June 2021
44 526	84 781	-47%
30 331	77 700	-61%
(44 902)	(71 357)	-37%
29 955	91 124	-67%
(4 923)	(5 130)	-4%
(5 561)	(7 725)	-28%
516	3 206	-84%
(1 970)	(1 326)	49%
(14)	(56)	-74%
18 003	80 093	-78%
(49)	(490)	-90%
(3 516)	(3 295)	7%
(2 547)	2 106	-221%
11 891	78 414	-85%
(555)	(1 016)	-45%
11 336	77 398	-85%

Normalised EBITDA	28 977	91 925	-68%

Company's Normalised EBITDA decreased in 1H2022 in comparison with 1H2021 due to decrease in sales volume and prices used in valuation of biological assets and agricultural produce under fair value.

Revenue

The Company's revenue from sales of finished products decreased by 47% in 1H2022 in comparison with previous period.

The following table sets forth the Company's sales revenue by products indicated:

	For the six	For the six
(in thousand USD)	months ended	months ended	Changes, %
	30 June 2022	30 June 2021
Corn	43 351	83 111	-48%
Sunflower	40	117	-66%
Wheat	201	67	200%
Milk	286	738	-61%
Cattle	286	104	175%
Other	281	514	-45%
	44 445	84 651	-47%

4

Interim report 2Q2022

Single management report

Financial and operational results

The most significant portion of the Company's revenue comes from selling corn, which represented 97,5% in 1H2022 and 98,2% in 1H2021 of total revenue.

The following table sets forth the volume of the Company's main crops and revenues generated from the sales of such crops:

(in thousand USD)

Corn

Sales of produced corn (in tonnes)

Realization price (U.S. $ per ton)

Revenue from produced corn (U.S. $ in thousands)

Sunflower

Sales of produced sunflower (in tonnes) Realization price (U.S. $ per ton)

Revenue from produced sunflower (U.S. $ in thousands)

Wheat

Sales of produced wheat (in tonnes) Realization price (U.S. $ per ton)

Revenue from produced wheat (U.S. $ in thousands)

Other (produced only) Total sales volume (in tonnes)

Total revenues (U.S. $ in thousands)

Total sales volume (in tonnes)

Total revenue from sale of crops (U.S. $ in thousands)

Decrease in sales volume in 1H2022 has led to a decrease in revenue.

Cost of sales

For the six	For the six
months ended	months ended
30 June 2022	30 June 2021
208 853	405 742
208	205
43 351	83 111
93	185
426	630
40	117
645	280
312	241
201	67
3 850	3 328
281	514
213 441	409 535
43 873	83 809

The Company's cost of sales changed to USD 44,9 million in current period from USD 71,4 million in previous period. The following table sets forth the principal components of the Company's cost of sales for the periods indicated:

(in thousand USD)

Raw materials

Change in inventories and work-in-progress Depreciation and amortization

Wages and salaries of operating personnel and related charges Fuel and energy supply

Third parties' services Rent

Repairs and maintenance

Taxes and other statutory charges Other expenses

For the six	For the six
months ended	months ended	Changes, %
30 June 2022	30 June 2021
(48 733)	(59 563)	-18%
23 600	8 403	181%
(10 476)	(10 857)	-4%
(5 021)	(5 365)	-6%
(3 059)	(2 484)	23%
(461)	(599)	-23%
(244)	(221)	10%
(263)	(372)	-29%
(201)	(244)	-18%
(44)	(55)	-20%
(44 902)	(71 357)	-37%

A 37% decrease in cost of sales in 1H2022 is consistent with a decrease in sales volume.

5