Kernel S A : Operations Update for the three months ended 30 September 2021

Operations Update

Q1 FY2022

22 OCTOBER 2021

KERNEL HOLDING S.A.

OPERATIONS UPDATE FOR THE THREE MONTHS ENDED

30 SEPTEMBER 2021

Segment volumes
metric tons	Q1 FY2021	Q1 FY2022	y-o-y
Oilseeds processed	662,613	482,266	(27%)
Edible oil sales 1	296,241	220,708	(25%)
Grain and oilseeds received in inland silos	1,254,649	1,019,184	(19%)
Export terminal's throughput (Ukraine)	1,868,593	2,206,913	18%
Grain export from Ukraine 2	2,125,650	2,226,755	5%

Note 1 Includes sales of sunflower oil and rapeseed oil in bulk, and bottled sunflower oil.

Note 2 Excluding physical trading volumes reported by Avere, a subsidiary of Kernel involved in physical and proprietary trading. Preliminary figures; financial year ends 30 June.

Differences are possible due to rounding.

Key highlights:

• Kernel oil-extraction plants processed 482 thousand tons of oilseeds in Q1 FY2022, down 27% y-o-y. With 373 thousand tons of sunflower seeds crushing volume, the business suffered from insufficient supply of sunflower seeds on the market at the end of the sunflower seed processing season (September-August) following the poor harvest of sunflower seeds in autumn 2020. To maintain capacities utilization, two Kernel plants switched to rapeseed crush, processing in total 109 thousand tons of rapeseed of new 2021 harvest.
• Edible oil sales volume in Q1 FY2022 totaled at 221 thousand tons, a 25% decrease y-o-y, largely in line with production pattern. Of that, sunflower oil sales constituted 192 thousand tons (including 30 thousand tons of bottled sunflower oil), and the remaining was rapeseed oil.
• Grain export volume from Ukraine in July-September 2021 increased by 5% y-o-y, to 2.2 million tons, of which 86% was grain originated from external suppliers and the remaining was produced by Group's Farming segment.
• Export terminals throughput volume in Ukraine amounted to 2.2 million tons, up 18% y-o-y, reflecting the growth in the transshipment of grain and sunflower meal.
• Company's silo in-takevolume decreased by 19% y-o-y, to 1.0 million tons, due to delayed harvesting campaign for corn and sunflower.

Harvesting update:

• Crop yields in company's farming segment are expected to increase for all three major crops: corn, sunflower, and wheat.

	Acreage, thousand hectares			Net yield 1, tons / hectare
	FY2021	FY2022	y-o-y		FY2021	FY2022	y-o-y
Corn	255.4	254.2	(0.5%)	8.0	8.5	6.5%
Sunflower	148.5	154.3	3.9%	3.0	3.0	0.9%
Wheat	73.1	64.6	(11.6%)	4.9	6.2	26.2%
Other 2	23.9	25.7	7.4%
Total	501.0	498.8	(0.4%)

Note 1 Net crop yields are projections based on 20.8% of corn, 92.9% of sunflower, and 100% of wheat acreage harvested as of 19 October 2021. Note 2 Includes rapeseed, soybean, barley, rye, oats, forage crops and other minor crops, as well as fallow land.

Preliminary figures; differences are possible due to rounding.

For further information, please contact:	Michael Iavorskyi, IR Manager
	[phone], ext. 72-75
	[e-mail]

The information in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither the Company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this document, or its contents, or otherwise arising in connection with this document. This document does not constitute or form part of any offer or invitation to sell or purchase, or any solicitation of any offer to sell or purchase any shares or securities in Kernel Holding S.A. It is not intended to form the basis upon which any investment decision or any decision to purchase any interest in Kernel Holding S.A. is made. Information in this document relating to the price at which investments have been bought or sold in the past or the yield on investments cannot be relied upon as a guide to future performance.

Certain statements in this document are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties or assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the date of this announcement. Except as required by law, the Company is under no obligation to update or keep current the forward-looking statements contained in this document or to correct any inaccuracies which may become apparent in such forward- looking statements.