Südzucker Group€¦ · Income from operations (EBIT) 150 104 93 Investments 58 62 166 ... sugar...
Transcript of Südzucker Group€¦ · Income from operations (EBIT) 150 104 93 Investments 58 62 166 ... sugar...
Südzucker GroupThomas Kölbl (CFO)
Cheuvreux – German Corporate Conference Frankfurt, January 17-19, 2011
FINANCIAL TRANSPARENCY
Südzucker Group, page 2
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 13
CropEnergies page 21
Fruit page 25
3. Financial Highlights 9M 2010/11 page 28
4. Outlook 2010/11 page 40
5. Appendix
Annual Financial Statement 2009/10 page 43
Long-term development and key figures page 61
Additional information page 68
FINANCIAL TRANSPARENCY
Südzucker Group, page 3
Südzucker Group at a glanceGroup revenues 5.7 bn € *
Global food company with headquarters and stock quotation in Germany (MDAX, MSCI; Market Cap ~ 4 bn €)
Approx. 70 % of revenues generated outside Germany
Defensive, non-cyclical business model
Development of new growth markets (e.g. Russia, China, Brazil)
Early market entry into growing business platforms with BENEO (Functional Food) and Fruit Preparations
Long-term growth option Bioethanol triggered
Special Products
(25%)
Sugar(55%)
Fruit(14%)
Starch**(36%)
Freiberger(32%)
BENEO(24%)
PortionPack(8%)
CropEnergies (6%)
* FY 2009/10** includes AGRANA bioethanol activities
FINANCIAL TRANSPARENCY
Südzucker Group, page 4
Südzucker Group: Market Position and Strategic Objectives
Segment/Division Market Position Strategy / Main Drivers
Sugar
BENEO
Freiberger
Starch
PortionPack
FruitPreparationsFruit JuiceConcentrates
CropEnergies
Take full benefit of global increase in demand for healthy food and upmarket products e.g. yoghurt drinks, wellness products, convenience food
Usage of integrated platform to raise synergiesin combined global sourcing and distribution
#1 in Europe Further enhancement of leading market
position in Europe; especially in deficit markets Internal efficiency gains
#1 worldwide
#1 in Europe
#1 worldwide in Isomaltand Oligofructose
#1 in Europe in frozenPizza (private label)
#1 in Europe in portion packs
One of the leadingplayers in Europe
Leverage strength of core products intoproduct innovations
External growth only via small add-ons feasible
Full exploitation of implemented capacity build-up
FINANCIAL TRANSPARENCY
Südzucker Group, page 5
about500 mn €
Back on track after successful transformation
74%
26%
30%
70%
Sugar Special Products FruitCropEnergies
Pre-Reform2003/04
Transition Period(sugar market regime)
Post-Transition Period2010/11e
6.0 bn €4.6 bn €
Rev
enue
sO
p. P
rofit
479 mn €
5.9 bn € - 08/09
233 mn € - 07/08
FINANCIAL TRANSPARENCY
Südzucker Group, page 6
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 13
CropEnergies page 21
Fruit page 25
3. Financial Highlights 9M 2010/11 page 28
4. Outlook 2010/11 page 40
5. Appendix
Annual Financial Statement 2009/10 page 43
Long-term development and key figures page 61
Additional information page 68
FINANCIAL TRANSPARENCY
Südzucker Group, page 7
Segment Sugar: Key Figures
(mn €) 2009/10 2008/09 2007/08
Revenues 3.154 3.320 3.464EBITDA 331 255 213EBITDA-Margin 10,5% 7,7% 6,1%Operating profit 217 137 60Operating Margin 6,9% 4,1% 1,7%Restructuring and special items -16 102 -20Income from operations (EBIT) 201 239 40
Investments 115 150 195Fixed Assets 107 124 139Financial Assets 9 26 53
Capital Employed 2.890 2.736 2.785RoCE 7,5% 5,0% 2,2%
FINANCIAL TRANSPARENCY
Südzucker Group, page 8
o/w SZ: Mauritius ~0.4 mn t Raw sugar imports for raffination through SZ ~0.3 mn t
o/w SZ ~25%
EU sugar market* - supply and demand
EU Production EU Demand World MarketWorld Market
~13 mn t
~16-17 mn t
o/w SZ3.2 mn t
~2-3 mn t
„Quota sugar“
„Non-quota sugar“
Production** 168 mn t
3-4 mn t
up to 0.4 mn t
max. ~1.4 mn t
Demand** 166 mn t
*Simplified, excl. isoglucose**F.O. Licht estimate for 2010/11, November 2010
~3-4 mn t
FINANCIAL TRANSPARENCY
Südzucker Group, page 9
EU quota sugar production - sugar marketing year* 2009/10
France
Germany
Belgium
Poland
Austria
Rumania
Moldova
20
72
40
25
25
100
39
35Hungary100
CzechRepublic
Slovakia
Bosnia-Hercegowina
Italy
Bulgaria
GreeceSpain
Portugal
Great Britain
* Sugar marketing year: Oct. – Sep.** Südzucker estimates
Südzucker Group(24 %)
Nordzucker(15 %)
All others(32 %)
British Sugar(12 %)
Tereos (10 %)
Pfeifer & Langen
(7 %)
Südzucker quota share per country (in %)Market share** EU quota sugar production
Non-EU productionSüdzucker distribution activity
FINANCIAL TRANSPARENCY
Südzucker Group, page 10
Cooperation with Mauritius strengthens distribution power
Mauritius
400,000 tonnessugar
Exclusive distributor of ~ 400,000 tonnes p.a. sugar contingent from Mauritius into the EU until 2015
Imported sugar volume… …leverages European distribution platform
…supports core regions
…supports market position in European deficit markets
Distribution power of Südzucker Group builds on approximately 4.5 million tonnes sugar (consisting of production of quota sugar, industrial sugar and refined sugar as well as imported sugar from Mauritius)
FINANCIAL TRANSPARENCY
Südzucker Group, page 11
Segment Sugar: Outlook 2010/11
Revenues Sales revenue reduction as of 1st of October 2009 takes effect
on full financial year basis for the first time
Higher volume of imported Mauritian sugar
Higher quota sugar volumes
Operating Profit
End of the restructuring phase in the EU sugar market and the elimination of temporary charges associated with sugar market reform (e.g. restructuring levy)
Non-quota sugar exports with one-time positive effect, especially in first quarter
Further and sustainable increase in operating profit
Overall leading to a slight increase in revenues
FINANCIAL TRANSPARENCY
Südzucker Group, page 12
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 13
CropEnergies page 21
Fruit page 25
3. Financial Highlights 9M 2010/11 page 28
4. Outlook 2010/11 page 40
5. Appendix
Annual Financial Statement 2009/10 page 43
Long-term development and key figures page 61
Additional information page 68
FINANCIAL TRANSPARENCY
Südzucker Group, page 13
(mn €) 2009/10 2008/09 2007/08
Revenues 1.396 1.427 1.283EBITDA 209 172 164EBITDA-Margin 14,9% 12,1% 12,8%Operating profit 138 108 107Operating Margin 9,8% 7,6% 8,3%Restructuring and special items 12 -4 -14Income from operations (EBIT) 150 104 93
Investments 58 62 166Fixed Assets 50 60 166Financial Assets 8 2 0
Capital Employed 1.309 1.287 1.217RoCE 10,5% 8,4% 8,8%
Segment Special Products: Key Figures
*adjusted for CropEnergies 2007/08
*
FINANCIAL TRANSPARENCY
Südzucker Group, page 14
Segment Special Products: strong positions in all divisions
BENEO: World market leader with premium food ingredients like Isomalt, Inulin, Oligofructose or rice starch
Freiberger: Private-label chilled and deep frozen convenience food (Pizza, Pasta, Baguettes)
Starch: Starch, starch niche products for food and non-food industry, isoglucose and AGRANA bioethanolactivities
PortionPack: Various portioned products; wide range of products of food and non-food articles
Revenues (mn €)
* incorporates AGRANA bioethanol and starch activities
Revenue split 2009/10
Freiberger32%
BENEO (Functional Food)
24%
PortionPack8%
Starch*36%
1,396mn €
1,427
1,283
1,1611,079
1,396
2005/06 2006/07 2007/08 2008/09 2009/10
CAGR 2005/06-2009/10: ~7 %
FINANCIAL TRANSPARENCY
Südzucker Group, page 15
Segment Special Products: Division BENEO
BENEO Group bundles Functional Food-operations
Worldwide unchanging growing demand for Functional Food ingredients in view of increasing competition
Increase in awareness for healthy food and growing per-capita income (emerging markets)
BENEO-Orafti (prebiotic fibres from chicory roots): Core products Inulin and Oligofructose; distribution of CropEnergies by-product BeneoPro W
BENEO-Palatinit (functional carbohydrates): Global leadership with Isomalt. Successful positioning of product innovations Palatinose™ and galenIQ™
BENEO-Remy (rice starches): e.g. rice starches, rice flours, rice bran, rice concentrates, …
Exploitation of growth potential of our core products
Development of new markets via innovations
Ingredientsfrom
naturalsource
Ingredientsfrom
naturalsource
processtechnologyprocess
technologyingredient processingingredient processing
regulatory support
regulatory support
nutritional science
nutritional science
PremiumproductsPremiumproducts
nutritional communication
nutritional communication
applicationtechnologyapplicationtechnology
world wide academic network
world wide academic network
specialty ingredient
sales
specialty ingredient
salesfood
marketing intelligence
food marketing intelligence
patent supportpatent support
marketing of health benefits
marketing of health benefits
consumerresearchconsumerresearch
food texturising
food texturising
passionateteam
passionateteam
FINANCIAL TRANSPARENCY
Südzucker Group, page 16
Segment Special Products: Division Starch*
… for Food Industry (e.g. Baby Food)
…for Food Industry (e.g. Soft Drinks)
…for Food Industry (e.g. Confectionery Products)
… for Foodstuffs, Paper, Textiles, Pharmaceuticals
End Product UseVALUE
VOLUME
Commodities (Potato / Maize Starch)
Glucose Syrups
Isoglucose
Maltodextrins
Derivatives, Ethers and Esters … for Textile / Construction / Cosmetic Industry
Focus
Well established player as manufacturer of specialty starches for the paper, textile, cosmetics, pharmaceutical and construction industries
Principal focus on organic and GM-free starches for the food industry
Niche strategy allows for differenciation against competition and leverages in-house research and development infrastructure
Full utilization of bioethanol plant in Pischelsdorf (Austria)
Full availability of upgraded capacity in Hungary
* incorporates AGRANA bioethanol and starch activities
FINANCIAL TRANSPARENCY
Südzucker Group, page 17
Segment Special Products: Division Freiberger
Freiberger produces and markets chilled and frozen pizzas as well as frozen pasta and baguettes
Solutions are specifically geared toward the strategies of its business partners: retail industry, caterers and food service operators
December 2008: Acquisition of further pizza production facility in Osterweddingen (Saxony-Anhalt)
Reconception of site in Westhoughton
Unrivalled European market leader for own label/private lable frozen pizzas
Berlin
Osterweddingen
Westhoughton
Muggensturm
Oberhofen
Production facility
FINANCIAL TRANSPARENCY
Südzucker Group, page 18
Landgraaf (NL)
Barcelona
Prague
Production facility
Herentals (B)Oud-Beijerland (NL) Bodegraven (NL)
Telford
European market leader in individually packaged portions for the food and non-food sectors in Central Europe
In addition to conventional sugar packets, product range includes a wide spectrum of other food portion packs such as baked-goods, chocolate and sandwich spreads
Besides to the out-of-home market (retaurants, hotels, caterers) and food retailers, PortionPack Europe also services industry (contract packing) and the advertising/promotion sectors
December 2008: Expansion into Spain via acquisition of sugar portion pack manufacturer SAES, Barcelona
October 2009: Expansion into UK via acquisition of portion pack market leader Single Source Ltd., Telford
Segment Special Products: Division PortionPack Europe
FINANCIAL TRANSPARENCY
Südzucker Group, page 19
Segment Special Products: Outlook 2010/11
Volume increase in all divisionsRevenues
Operating Profit
Slighly lower operating profit against prior year
Overall increase in revenues
Earnings development in all divisions less affected by difficult economic market environment
FINANCIAL TRANSPARENCY
Südzucker Group, page 20
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 13
CropEnergies page 21
Fruit page 25
3. Financial Highlights 9M 2010/11 page 28
4. Outlook 2010/11 page 40
5. Appendix
Annual Financial Statement 2009/10 page 43
Long-term development and key figures page 61
Additional information page 68
FINANCIAL TRANSPARENCY
Südzucker Group, page 21
(mn €) 2009/10 2008/09 2007/08
Revenues 362 319 180EBITDA 33 29 31EBITDA-Margin 9,2% 9,0% 17,2%Operating profit 12 18 22Operating Margin 3,3% 5,7% 12,2%Restructuring and special items -2 -11 -5Income from operations (EBIT) 10 7 17
Investments 34 171 147Fixed Assets 34 170 147Financial Assets 0 1 0
Capital Employed 525 221 221RoCE 2,3% 8,2% 10,0%
Segment CropEnergies: Key Figures
*since 2008/09 reported as separate segment
*
FINANCIAL TRANSPARENCY
Südzucker Group, page 22
Segment CropEnergies: Overview
Improvement of political framework EU: Renewable Energies Directive has
been in force since June 2009
Germany: E10 introduced since January 1, 2011
Increased capacity utilisation in Wanze Economies of scale
Successful launch of Gluten andProtiWanze®
Start-up of the CO2 liquefaction plant CT Biocarbonic GmbH (joint venture) Partner: Tyczka Energie GmbH
Annual capacity of 100,000 tonnes of
biogenic CO2
First customers already suppliedSource: EU Member States Reports, F.O. Licht, CropEnergies
Quarterly development (2010/11) – Op. profit (mn €)
EU demand/potential and production (bioethanol)
2.3
15.0 14.6
Q1 Q2 Q3
FINANCIAL TRANSPARENCY
Südzucker Group, page 23
Segment CropEnergies: Outlook 2010/11
Increase in utilization at BioWanze leads to higher production leveland increase in volumes of bioethanol as well as by-productsRevenues
Operating Profit
Despite maintenance shutdown phase in Q1, production facilities in Zeitz and Wanze …
…with positive earnings development on full year basis through higher utilization of capacities for bioethanol and by-product production
Operating profit to exceed 40 (12) million €
Increase in revenues
FINANCIAL TRANSPARENCY
Südzucker Group, page 24
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 13
CropEnergies page 21
Fruit page 25
3. Financial Highlights 9M 2010/11 page 28
4. Outlook 2010/11 page 40
5. Appendix
Annual Financial Statement 2009/10 page 43
Long-term development and key figures page 61
Additional information page 68
FINANCIAL TRANSPARENCY
Südzucker Group, page 25
Segment Fruit: Key Figures
(mn €) 2009/10 2008/09 2007/08
Revenues 806 805 853EBITDA 72 33 81EBITDA-Margin 8,9% 4,0% 9,5%Operating profit 36 -5 44Operating Margin 4,4% neg. 5,1%Restructuring and special items -3 0 -5Income from operations (EBIT) 32 -5 39
Investments 26 42 43Fixed Assets 26 31 43Financial Assets 0 12 0
Capital Employed 650 679 781RoCE 5,5% neg. 5,6%
FINANCIAL TRANSPARENCY
Südzucker Group, page 26
Segment Fruit: Outlook 2010/11
Revenues Impulse via innovation and development of new markets in both
divisions
Market recovery facilitates volume increase in division fruitpreparations
Recovering sales revenues in fruit juice concentrate during courseof the year due to weather-driven lower apple harvest
Operating Profit
Further improvement in operating profit mainly supported byvolume increase in fruit preparation as well as normalizedmargins in fruit juice contentrate divisions
Revenues above previous year
FINANCIAL TRANSPARENCY
Südzucker Group, page 27
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 13
CropEnergies page 21
Fruit page 25
3. Financial Highlights 9M 2010/11 page 28
4. Outlook 2010/11 page 40
5. Appendix
Annual Financial Statement 2009/10 page 43
Long-term development and key figures page 61
Additional information page 68
FINANCIAL TRANSPARENCY
Südzucker Group, page 28
Group income statement *
* This presentation includes percentage and number rounding
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 1,599 1,503 6.4% 4,667 4,438 5.2%EBITDA 236 229 3.4% 613 490 25.1%
EBITDA margin 14.8% 15.2% 13.1% 11.0%Depreciation -102 -99 3.0% -197 -181 8.5%Operating profit 134 129 3.6% 416 308 34.8%
Operating margin 8.4% 8.6% 8.9% 6.9%Restructuring costs and special items 0 -3 - -20 2 -Income from operations 134 127 5.7% 396 311 27.5%Net earnings for the period attributable to Südzucker shareholders 66 57 15.7% 188 159 18.1%Earnings per share (€) (undiluted) 0.34 0.30 13.9% 0.99 0.84 18.1%Cash flow 228 176 29.6% 497 419 18.7%Investments in fixed assets 48 50 -3.1% 159 151 5.4%Net financial debt (as of reporting date) 704 893 -21.2%Average number of employees 18,052 17,756 1.7%
3rd quarter 1st - 3rd quarter
FINANCIAL TRANSPARENCY
Südzucker Group, page 29
Financial Highlights 9M 2010/11 *
9M 2009/10 9M 2010/11
Revenues 4,438 mn € 4,667 mn €
Operating Profit 308 mn € 416 mn €
893 mn € 704 mn €
Cash flow
Earnings per share
419 mn €
0.84 €
497 mn €
0.99 €
Net Financial Debt
* 9M group revenues and group operating profit reported on 17 December 2010
FINANCIAL TRANSPARENCY
Südzucker Group, page 30
Segment Sugar: Sugar production 2010 *
Due to alternating weather and growing conditions across Europe, previous year‘sextraordinary high group sugar yield of 12.3 t/ha was unreproducible and reached 11.4 t/ha.
As a consequence, preliminary campaign estimates show a reduction in sugar productionof approximately 9 % against previous year‘s high level.
* Sugar production (incl. refining) campaign 2010 (preliminary)
1,000 tonnes 2010 2009 Change abs. Change %Germany 1,494 1,822 -328 -18.0France 939 962 -23 -2.4Belgium 485 616 -131 -21.3Austria 453 414 39 9.4Poland 374 410 -36 -8.8Romania 136 157 -21 -13.4Czech Republic 135 139 -4 -2.9Hungary 117 108 9 8.3Moldova 75 33 42 > 100,0Bosnia 63 50 13 26.0Slovakia 62 58 4 6.9Total 4,333 4,769 -436 -9.1
FINANCIAL TRANSPARENCY
Südzucker Group, page 31
Segment Sugar: Development 9M 2010/11
Revenues: Stable revenue development in Q3 following H1 which was marked by an increase in non-quota sugar exports and lower quota sugar sales revenues.
Operating profit: Lower costs compensating for the lower sales revenues since 1st of October2009, have fully materialized in Q3. Furthermore the increase in operatingprofit was strongly supported by the significant increase in quota sugarvolumes in H1 and especially by the higher non-quota sugar exports in Q1.
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 865 852 1.6% 2,537 2,507 1.2%EBITDA 138 135 1.7% 328 264 24.2%
EBITDA margin 15.9% 15.9% 12.9% 10.5%Depreciation -67 -68 -1.5% -92 -91 1.9%Operating profit 71 67 4.9% 236 174 35.8%
Operating margin 8.2% 7.9% 9.3% 6.9%
3rd quarter 1st - 3rd quarter
FINANCIAL TRANSPARENCY
Südzucker Group, page 32
Segment Special Products: Development 9M 2010/11
Revenues: In light of higher volumes, all divisions contributed to the increase in revenues.
Operating profit: Despite the expected lower earnings contribution in Q3, 9M performancestill shows an increase in operating profit against previous year‘s level. In division starch, the ongoing volume uplift and most recent salesrevenue increase were enough to compensate for the increase in rawmaterial prices.
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 404 363 11.5% 1,166 1,051 11.0%EBITDA 54 61 -10.9% 168 158 6.5%
EBITDA margin 13.3% 16.7% 14.4% 15.0%Depreciation -19 -18 5.1% -55 -52 6.5%Operating profit 35 43 -17.5% 112 106 6.6%
Operating margin 8.7% 11.8% 9.6% 10.0%
3rd quarter 1st - 3rd quarter
FINANCIAL TRANSPARENCY
Südzucker Group, page 33
Segment CropEnergies: Development 9M 2010/11 *
Revenues: The increase in revenues was mainly driven by higher volumes atthe production facility in Wanze.
Operating profit: In light of the higher volume in ethanol and respective by-products, operating profit has been strongly lifted. The spread betweenethanol and grain prices was nearly unchanged.
* CropEnergies has reported 9M revenues and operating profit on 17 December 2010
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 125 92 35.9% 325 272 19.3%EBITDA 22 9 > 100.0% 55 17 > 100.0%
EBITDA margin 17.8% 10.2% 16.8% 6.2%Depreciation -8 -5 52.0% -23 -13 70.1%Operating profit 15 4 > 100.0% 32 4 > 100.0%
Operating margin 11.7% 4.8% 9.9% 1.3%
3rd quarter 1st - 3rd quarter
FINANCIAL TRANSPARENCY
Südzucker Group, page 34
Segment Fruit: Development 9M 2010/11
Revenues: Higher volumes in H1 overcompensated the sales revenue declinein the first nine months.
Operating profit: Though 9M earnings still show a significant improvement againstprevious year‘s level, higher sales revenues were not enough tocompensate for the lower volumes in Q3 leading to a reduction in earnings in the quarter.
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 205 197 4.4% 640 608 5.3%EBITDA 23 23 -3.2% 62 51 21.5%
EBITDA margin 11.0% 11.9% 9.7% 8.4%Depreciation -9 -9 5.7% -27 -26 3.9%Operating profit 14 15 -8.3% 35 25 39.2%
Operating margin 6.7% 7.6% 5.5% 4.2%
3rd quarter 1st - 3rd quarter
FINANCIAL TRANSPARENCY
Südzucker Group, page 35
Income statement (I)
Restructuring costs and special items: Unchanged in comparison to H1 level.
Income from associated companies: The result reflects mainly the company‘s share of earnings from our joint ventures sales
organizations. Financial result:
The deterioration is mainly attributable to two non-recurring effects; positive currencyeffects of the prior year and the discounting of the EU restructuring assistance receivable. Due to a reduction in average net debt, financial expenses were reduced from 122 million€ to 95 million €.
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 1,599 1,503 6.4% 4,667 4,438 5.2%Operating profit 134 129 3.6% 416 308 34.8%Restructuring costs and special items 0 -3 - -20 2 -Income from operations 134 127 5.7% 396 311 27.5%Income from associated companies 0 0 - 2 1 52.8%Financial result -24 -27 -10.9% -70 -35 > 100.0%Earnings before income taxes 111 100 10.5% 328 277 18.5%
3rd quarter 1st - 3rd quarter
FINANCIAL TRANSPARENCY
Südzucker Group, page 36
Income statement (II)
Taxes on income: The tax rate came in at 21 %.
Minority interests: The co-owners of the AGRANA Group account for most of the other minority interests‘
share of the net earnings. Earnings per share:
EPS increased by 18 % to 0.99 €.
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Earnings before income taxes 111 100 10,5% 328 277 18,5%Taxes on income -17 -22 -24,2% -69 -60 15,1%Net earnings for the year 94 78 20,2% 259 217 19,5%of which attributable to Südzucker shareholders 65 57 15,7% 188 159 18,1%of which attributable to hybrid capital 7 7 -1,5% 20 20 -0,5%of which attributable to minority interests 22 15 47,3% 51 38 35,9%
Earnings per share (€) 0,34 0,30 13,9% 0,99 0,84 18,1%
3rd quarter 1st - 3rd quarter
FINANCIAL TRANSPARENCY
Südzucker Group, page 37
Cash flow statement
Cash flow: The improvement follows the development in operating profit. The decline in working capital was substantially lower than last year, because in June 2009, the company received the EU restructuring payment of 446 million €.
Investments: Continued disciplined capex program with overall investments close tomaintenance level.
(mn €) 2010/11 2009/10 ∆Cash flow 497 419 18.7%Decrease (+) in working capital 165 554 -70.2%Investments in fixed assets
Sugar segment 88 79 10.7%Special products segment 39 34 15.3%CropEnergies segment 19 24 -22.8%Fruit segment 13 13 0.0%
Total investments in fixed assets 159 151 5.4%Investments in financial assets 6 22 -74.0%
Dividends paid -143 -133 7.3%
1st - 3rd quarter
FINANCIAL TRANSPARENCY
Südzucker Group, page 38
Balance sheet
Reduction in current liabilities leading to reduction in net financial debt: The reduction in current liabilities is driven by the redemption of the 300 million € bond in
June 2010. Further improvement in financial ratios:
The equity ratio has seen a further improvement to 48%. The improvement in gearing reflects both, the further reduced net financial debt level and
the increase in equity.
(mn €) 30.11.2010 30.11.2009 ∆AssetsNon-current assets 4,050 4,072 -0.5%Current assets 3,516 3,570 -1.5%Total assets 7,566 7,642 -1.0%Liabilities and shareholders' equityShareholders' equity 3,653 3,416 7.0%Non-current liabilities 1,931 1,946 -0.8%Current liabilities 1,982 2,280 -13.1%Total liabilities and shareholders' equity 7,566 7,642 -1.0%Net financial debt 704 893 -21.2%Equity ratio 48% 45%Net financial debt in percent of equity (gearing) 19% 26%
FINANCIAL TRANSPARENCY
Südzucker Group, page 39
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 13
CropEnergies page 21
Fruit page 25
3. Financial Highlights 9M 2010/11 page 28
4. Outlook 2010/11 page 40
5. Appendix
Annual Financial Statement 2009/10 page 43
Long-term development and key figures page 61
Additional information page 68
FINANCIAL TRANSPARENCY
Südzucker Group, page 40
Normalisation of NFD trend continues in 2010/11
Three years with high payments to the EU restructuring fund led to temporary distortion of normal seasonal NFD pattern
In 2009/10 the EU restructuring assistance (received by end of June 2009) has essentially contributed to a reduction in NFD and a seasonal normalisation
Basis for additional reduction in NFD going forward
* Payments to restructuring fund (overall -1.5 bn € )** Südzucker received EU restructuring assistance of 446 mn € in June 2009
-586 mn € * -551 mn € * -363 mn € *+446 mn € **
FINANCIAL TRANSPARENCY
Südzucker Group, page 41
Operating Profit2009/10 2010/11e
Group: Outlook 2010/11
Sugar
Revenues2009/10 2010/11e
Special Products
CropEnergies
Fruit
Group 1) 5.7 bn € 6.0 bn € 403 mn € about 500 mn €
Investments 2)
Net Financial Debt 1) Revised upwards following preliminary announcement on 17 December 2010
2) excl. investments in financial assets
~ 250 mn €
~ 900 – 1,000 mn €
3.2 bn €
1.4 bn €
362 mn €
806 mn €
217 mn €
138 mn €
12 mn €
36 mn €
> 40 mn €
FINANCIAL TRANSPARENCY
Südzucker Group, page 42
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 13
CropEnergies page 21
Fruit page 25
3. Financial Highlights 9M 2010/11 page 28
4. Outlook 2010/11 page 40
5. Appendix
Annual Financial Statement 2009/10 page 43
Long-term development and key figures page 61
Additional information page 68
FINANCIAL TRANSPARENCY
Südzucker Group, page 43
Financial Highlights 2009/10 (I)
Group revenues decline by 3% to 5.7 (5.9) bn €
Group operating profit increase by 56% to 403 (258) mn €
Segment sugar shows further significant earnings improvement to 217 (137) mn € in light of cost reductions and reduced charges from the restructuring phase of the EU sugar market
Segment special products generates substantially higher profit due to improvements at the BENEO and starch divisions: 138 (108) mn €
Segment CropEnergies profits lower due to ramp-up of bioethanol plant operations in Wanze/Belgium: 12 (18) mn €
Segment fruit profits explicitly recovered to 36 (-5) mn € due to omission of prior year‘s inventory write-down
Increase of group net profit to 276 (183) mn €, EPS 1.06 (0.86) €
Cashflow 553 (504) mn € on high level
Increase in dividend to 0.45 (0.40) € per share
Massive reduction in net financial debt by 35% to 1,065 (1,633) mn €
Successful placement of promissory note in April 2009 (150 mn €; coupon 5.90%; maturity 2014) and convertible bond in June 2009 (283 mn €, coupon 2.5%; maturity 2016)
FINANCIAL TRANSPARENCY
Südzucker Group, page 44
Financial Highlights 2009/10 (II)
2008/09 2009/10
Revenues 5.9 bn € 5.7 bn €
Operating Profit 258 mn € 403 mn €
0.40 € 0.45 €
Net profit
Earnings per share
183 mn €
0.86 €
276 mn €
1.06 €
Dividend per share
FINANCIAL TRANSPARENCY
Südzucker Group, page 45
Financial Highlights 2009/10 (III)
Sugar
Fruit
Special Products
CropEnergies
137 mn €
108 mn €
18 mn €
-5 mn €
217 mn €
138 mn €
12 mn €
36 mn €Ope
ratin
g Pr
ofit
2008/09 2009/10
Group 258 mn € 403 mn €
FINANCIAL TRANSPARENCY
Südzucker Group, page 46
Successful placement of Promissory Note (150 mn €) Convertible bond (283 mn €),
Coupon 2,5%; Maturity 2016)
Financial Highlights 2009/10 (IV)
2008/09 2009/10
Investments* 384 mn € 216 mn €
Cashflow 504 mn € 553 mn €
Net Financial Debt
Liquidity
1,633 mn €
~1.7 bn €
1,065 mn €
~2.5 bn €
Financing
* excl. investments in financial assets
FINANCIAL TRANSPARENCY
Südzucker Group, page 47
(mn €) 2009/10 2008/09 2007/08
Revenues 5.718 5.871 5.780EBITDA 645 489 489EBITDA-Margin 11,3% 8,3% 8,5%Operating profit 403 258 233Operating Margin 7,0% 4,4% 4,0%Restructuring and special items -10 87 -44Income from operations (EBIT) 392 345 189
Cashflow 553 504 498Net Financial Debt 1.065 1.633 1.508Equity Ratio 47,3% 41,9% 41,7%
Capital Employed 5.374 4.923 5.005RoCE 7,5% 5,2% 4,7%
Earnings per share (€) 1,06 0,86 0,10Cashflow per share (€) 2,92 2,66 2,63Dividend per share (€) 0,45 0,40 0,40
Group – Key Figures
FINANCIAL TRANSPARENCY
Südzucker Group, page 48
Revenue development(mn €)
2008/09 2009/10
5,871
5,718
5400
5450
5500
5550
5600
5650
5700
5750
5800
5850
5900
-166
-301 43Sugar
Special Products
Fruit Crop Energies
FINANCIAL TRANSPARENCY
Südzucker Group, page 49
Operating profit development(mn €)
2008/09 2009/10
403
258
100
150
200
250
300
350
400
450
81
3042
-6
Sugar
Special Products
Fruit
Crop Energies
FINANCIAL TRANSPARENCY
Südzucker Group, page 50
Result from restructuring and special items
The restructuring result is essentially influenced by charges in the sugar segment which include expenses for restructuring programs and revaluation of default risks. These were largely offset by income from insurance settlements the special products segment received for claims associated with a fire damage at the Freiberger pizza plant in Skelmersdale, Great Britain.
(mn €) 2009/10 2008/09 ∆
Operating profit 403 258 145
Restructuring & special items -10 87 -97
thereof Sugar -16 102 -119
thereof Special Products 12 -4 16
thereof CropEnergies -2 -11 9
thereof Fruit -4 0 -4
Income from operations (EBIT) 392 345 47
FINANCIAL TRANSPARENCY
Südzucker Group, page 51
Earnings before income taxes
Income from associated companies mainly includes the company‘s share of earnings from joint-venture sales organizations. The prior year‘s numbers had still included a large sum resulting from the Eastern Sugar B.V. settlement.
The financial result improved by 89 mn € compared to the same period a year earlier. Among other things, the improvement is attributable to lower average debt together with the strengthening of the prior year‘s accruals for currency devaluations for euro-denominated group financing. Discounted receivables from the EU restructuring assistance paid to Südzucker in June 2009 had an ultimately positive impact on interest income.
(mn €) 2009/10 2008/09
Income from operations (EBIT) 392 345 47Income from associated companies 2 22 -20Financial expense -46 -135 89Earnings before income taxes 348 232 116
∆
FINANCIAL TRANSPARENCY
Südzucker Group, page 52
Earnings per share
Group tax rate again came in at 21%.
Other minority interests consist mainly of minority shareholders of the AGRANA Group, which contributed to the annual results of the AGRANA Group.
Earnings per share came in at 1.06 €. The prior year‘s earnings per share included a one-time impact of 0.48 € per share from the EU restructuring assistance income associated with the second wave quota returns minus the cost of the factory closures.
Dividend increase to 0.45 (0.40) € per share.
(mn €) 2009/10 2008/09
Earnings before income taxes 348 232 116Taxes on income -72 -49 -23Consolidated net earnings 276 183 93
thereof Südzucker AG shareholders 200 162 38thereof hybrid capital 26 26 0thereof other minority interest 50 -5 55
Earnings per share (€) 1,06 0,86 0,20
∆
FINANCIAL TRANSPARENCY
Südzucker Group, page 53
Investments and depreciation
Investments in segment sugar on, special products and fruit significantly below depreciation level. Segment CropEnergies with significant reduction. Ramp-up phase of bioethanol plant in Wanze marks end of investment phase.
Group: Projected reduction in fixed asset investments below 250 mn € more than achieved. Total investments reduced by 45%.
(mn €) 2009/10 2008/09 2009/10
Fixed Assets 216 384 -168 Depreciation 243Sugar 107 124 -17 Sugar 114Special Products 50 60 -10 Special Products 71CropEnergies 34 170 -136 CropEnergies 21Fruit 26 31 -4 Fruit 37
Financial Assets 17 40 -23Sugar 9 26 -18Special Products 8 2 6CropEnergies 0 1 -1Fruit 0 12 -12
Südzucker Group 233 424 -192
∆
FINANCIAL TRANSPARENCY
Südzucker Group, page 54
1.508
1.065
1.633Cash Flow
Working Capital Investments
Net Financial Debt reduction due to …(mn €)
274 -233
54
Dividends-133
Disposal of assets
Maintenance capex in established capacities
Cash inflow EU restructuring assistance 446 mn € (June 2009)
Payment to EU restructuring fund -363 (-551) mn €
553
NFD 29.02.2008
NFD 28.02.2009
NFD 28.02.2010
52
Cap. increase through
convertible bond
2009/2016
1,508 1,633
1,065
FINANCIAL TRANSPARENCY
Südzucker Group, page 55
Balance sheet ratios
(mn €) 28.02.2010 28.02.2009 29.02.2008
Total assets 7.398 7.709 7.917Equity 3.500 3.229 3.300Equity ratio 47,3% 41,9% 41,7%
Net Financial Debt (NFD) 1.065 1.633 1.508Gearing (NFD/Equity) 30,4% 50,6% 45,7%Cashflow 553 504 498NFD/Cashflow 1,9x 3,2x 3,0x
Goodwill 1.132 1.124 1.104Property, plant, equipment 2.609 2.626 2.596Working Capital 1.512 1.323 1.431
Capital Employed 5.374 4.923 5.005RoCE 7,5% 5,2% 4,7%
* Adjustment segment fruit: Goodwill book value redirected to participation level of parent company
*
FINANCIAL TRANSPARENCY
Südzucker Group, page 56
Liquidity profile
Südzucker received EU restructuring assistance of 446 mn € in June 2009 for sugar quota return
(mn €) 2008/09 2009/10Net financial debt -1.633 -1.065Cash & cash equivalents / securities 413 695
Gross financial debt -2.046 -1.760
Long-term financial debt -1.154 -1.120
Short-term financial debt -892 -640
Bank credit lines: 1.421 1.234undrawn 511 558
Syndicated loan facility (July 2012) 600 600undrawn 330 600
Commercial paper program 600 600undrawn 486 600
Total liquidity reserves 1.740 2.452
FINANCIAL TRANSPARENCY
Südzucker Group, page 57
2.3%8.2%10.0%
2009/102008/092007/08
4,923 mn €
7.5%
5,374 mn €
403 mn €258 mn €
5.2%
5,005 mn €
233 mn €
4.7%
CropEnergies
Return on Capital Empoyed (RoCE)
Fruit
Capital Employed
Operating Profit
Segm
ents
Gro
up
RoCE
Special Prod.
Sugar 2.2% 5.0% 7.5%
9.0% 8.4% 10.5%
5.6% neg. 5.5%
2010/11e
FINANCIAL TRANSPARENCY
Südzucker Group, page 58
Breakdown of Capital Employed (2009/10)
Breakdown by assets Breakdown by segments
5,374 mn € 5,374 mn €
23%
28%
49%
Goodwill Working Capital Fixed assets
54%
24%
10%
12%
Sugar Special ProductsCropEnergies Fruit
FINANCIAL TRANSPARENCY
Südzucker Group, page 59
Outlook 2009/10 Reported 2009/10
Performance versus Outlook 2009/10 targets achieved
Revenues
Net Financial Debt
Operating Profit
Investments*
prior year‘s level
~400 mn €
~250 mn €
~1.1 – 1.2 bn €
5.7 bn €
403 mn €
216 mn €
deutliche Ergebniserholung1,065 mn €
* excl. investments in financial assets
FINANCIAL TRANSPARENCY
Südzucker Group, page 60
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 13
CropEnergies page 21
Fruit page 25
3. Financial Highlights 9M 2010/11 page 28
4. Outlook 2010/11 page 40
5. Appendix
Annual Financial Statement 2009/10 page 43
Long-term development and key figures page 61
Additional information page 68
FINANCIAL TRANSPARENCY
Südzucker Group, page 61
Pre-Reform Post-Transition PeriodActual Actual Actual Actual Actual Actual Actual Outlook
(mn €) 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11e
Revenues 4.575 4.827 5.347 5.765 5.780 5.871 5.718 6.000EBITDA 677 723 672 682 489 489 645
EBITDA-Margin 14,8% 15,0% 12,6% 11,8% 8,5% 8,3% 11,3%Operating profit 479 523 450 419 233 258 403 ~ 500
Operating Margin 10,5% 10,8% 8,4% 7,3% 4,0% 4,4% 7,0%Income from operations (EBIT) 446 491 397 -129 189 345 392Earnings before income taxes (EBT) 394 457 328 -227 120 232 348Net earnings 307 358 304 -246 100 183 276
thereof to SZ AG shareholders 255 297 242 -326 19 162 200
Earnings per share (€) 1,48 1,67 1,36 -1,72 0,10 0,86 1,06Dividend per share (€) 0,50 0,55 0,55 0,55 0,40 0,40 0,45
Cashflow 522 553 527 554 498 504 553Investments total 488 1.090 642 599 550 424 233 ~ 250
Capital Employed 4.091 4.646 5.221 4.767 5.005 4.923 5.374RoCE 11,7% 11,3% 8,6% 8,8% 4,7% 5,2% 7,5%
Total Assets 6.038 7.195 7.926 7.932 7.917 7.709 7.398Equity 2.386 2.738 3.733 3.362 3.300 3.229 3.500Equity Ratio 39,5% 38,1% 47,1% 42,4% 41,7% 41,9% 47,3%Net Financial Debt (NFD) 1.008 1.672 1.177 811 1.508 1.633 1.065 ~ 900 - 1.000Gearing (NFD/Equity) 42,2% 61,1% 31,5% 24,1% 45,7% 50,6% 30,4%
Transition Period
Long-term development
*
**
* Extraordinary impact from Goodwill impairment loss** Does not include Cash inflow of 446 mn € from EU effective June 2009*** Capex (excluding investments in financial assets)
***
FINANCIAL TRANSPARENCY
Südzucker Group, page 62
2009/10 2008/09 2009/10(mn €) RoCE RoCE Op. Profit Cap. Employed
Südzucker Group 7,5% 5,2% 403 5.374Sugar 7,5% 5,0% 217 2.890Special Products 10,5% 8,4% 138 1.309CropEnergies 2,3% 8,2% 12 525Fruit 5,5% neg. 36 650
Return on Capital Employed (RoCE)
Sugar: Significant increase in light of strong earnings improvement, despite slight increase in capital employed.
Special Products: Increase with stable capital employed and significant profit uplift.
CropEnergies: Ramp-up of bioethanol plant in Wanze increases capital employed significanlty. Additional operating burden within ramp-up phase.
Fruit: RoCE-development reflects mainly profit recovery after prior year‘s inventory write-down in apple juice concentrates.
Group: Earnings increase in segments sugar, special products and fruit compensate for temporary weak development in segment CropEnergies
* Adjustment segment fruit: Goodwill book value redirected to participation level of parent company
*
FINANCIAL TRANSPARENCY
Südzucker Group, page 63
Liquidity profile end of period
Südzucker received EU restructuring assistance of 446 mn € in June 2009 for sugar quota return
(mn €) Q3 2009/10 Q4 2009/10 Q1 2010/11 Q2 2010/11 Q3 2010/11
Net financial debt -893 -1,065 -1,065 -776 -704
Cash & cash equivalents / securities 900 695 699 637 721
Gross financial debt -1,793 -1,760 -1,764 -1,413 -1,425
Long-term financial debt -1,186 -1,120 -1,113 -1,083 -1,123
Short-term financial debt -607 -640 -651 -330 -302
Bank credit lines: 1,276 1,234 1,177 1,133 1,062
undrawn 569 558 515 532 445Syndicated loan facility (July 2012) 600 600 600 600 600
undrawn 600 600 600 600 600Commercial paper program 600 600 600 600 600
undrawn 600 600 600 600 600
Bank credit lines (undrawn) 569 558 515 532 445+ Cash & cash equivalents / securities 900 695 699 637 721+ Syndicated loan (undrawn) 600 600 600 600 600+ Commercial paper (undrawn) 600 600 600 600 600= Total liquidity reserves 2,669 2,452 2,414 2,368 2,366
FINANCIAL TRANSPARENCY
Südzucker Group, page 64
Financing maturity profile further enhanced*
6.25% Bond 2000/2010, 300 mn €
5.75% Bond 2002/2012, 500 mn €
Syndicated loan, 600 mn €, no covenantsmargin max. 35 bp, short-term borrowing facility 1 week < 1 year volume 2010/11 Q3: 0 mn €
5.25% Hybrid Bond 2005/2015, 700 mn € Perpetual; first issuer call right June 2015
Commercial Paper-Program, 600 mn € Drawn lines 2010/11 Q3: 0 mn €
June 2010
February 2012
July 2012
June 2015
Perpetual
5.90% German promissory note, 150 mn €April 2014(Placement April 2009)
June 2016(Placement June 2009)
2.50% Convertible Bond 2009/2016, 283 mn € Issuer Call after 4 years; Investor Put after 5 years
* as of February 28th, 2010
FINANCIAL TRANSPARENCY
Südzucker Group, page 65
Group balance sheet(mn €)
Other current assets
Inventories
Non-current assets
Assets28.02.2009 28.02.2010
7,709
1,641(21.3 %)
1,997(25.9 %)
4,071(52.8 %)
7,398
1,536(20.7 %)
1,751(23.7 %)
4,111(55.6 %)
Current liabilities
Non-current liabilities
Equity
Total
Liabilities28.02.2009 28.02.2010
7,709
2,539(32.9 %)
1,940(25.2 %)
3,229(41.9 %)
7,398
1,976(26.7 %)
1,922(26.0 %)
3,500(47.3 %)
Total
FINANCIAL TRANSPARENCY
Südzucker Group, page 66
Group balance sheet
(mn €) 28.02.2010 28.02.2009
Intangible assets 1.189 16,1% 1.181 15,3%Property, plant, equipement 2.552 34,5% 2.569 33,3%Shares in associated companies 19 0,3% 76 1,0%Other investments and loans 29 0,4% 23 0,3%Securities 146 2,0% 105 1,4%Receivables and other assets 13 0,2% 8 0,1%Deferred tax assets 164 2,2% 108 1,4%Non-current assets 4.111 55,6% 4.071 52,8%
Inventories 1.751 23,7% 1.997 25,9%Trade receivables and other assets 962 13,0% 1.301 16,9%Current tax receivables 25 0,3% 33 0,4%Securities 191 2,6% 144 1,9%Cash and cash equivalents 357 4,8% 164 2,1%Current assets 3.287 44,4% 3.638 47,2%
Total assets 7.398 100,0% 7.709 100,0%
(mn €) 28.02.2010 28.02.2009
Equity attributable to shareholders of SZ AG 2.271 30,7% 2.047 26,5%Hybrid capital 684 9,2% 684 8,9%Other minority interest 546 7,4% 499 6,5%Shareholder's equity 3.500 47,3% 3.229 41,9%Provisions for pensions and similar obligations 409 5,5% 405 5,2%Other provisions 188 2,5% 201 2,6%Non-current financial liabilities 1.119 15,1% 1.154 15,0%Other liabilities 15 0,2% 15 0,2%Deferred tax liabilities 191 2,6% 165 2,1%Non-current liabilities 1.922 26,0% 1.940 25,2%Other provisions 104 1,4% 117 1,5%Current financial liabilities 641 8,7% 891 11,6%Trade and other payables 1.193 16,1% 1.498 19,4%Current tax liabilities 37 0,5% 33 0,4%Current liabilities 1.975 26,7% 2.539 32,9%Total liabilities and shareholders' equity 7.398 100,0% 7.709 100,0%
FINANCIAL TRANSPARENCY
Südzucker Group, page 67
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 13
CropEnergies page 21
Fruit page 25
3. Financial Highlights 9M 2010/11 page 28
4. Outlook 2010/11 page 40
5. Appendix
Annual Financial Statement 2009/10 page 43
Long-term development and key figures page 61
Additional information page 68
FINANCIAL TRANSPARENCY
Südzucker Group, page 68
Revenue by region 2009/10
Germany (29.9 %)
EU 15(48.9 %)
Rest of world(8.3 %)
5,718 mn €EU 12(12.9 %)
FINANCIAL TRANSPARENCY
Südzucker Group, page 69
Segment Sugar: Campaign SMY 2009/10
Beet growers: 46,000 (47,600)
Beet acreage: 401,000 (370,000) ha
Sugar factories (incl. refineries): 32 (33)
Beet processing: 28.4 (25.0) mn tons
Sugar production: 4.8 (4.2) mn tons thereof from beets: 4.4 (3.9) mn tons
thereof raw sugar raffination: 0.4 (0.3) Mio. t
FINANCIAL TRANSPARENCY
Südzucker Group, page 70
Südzucker well positioned in „Beet Belt“
Poland
Slovakia
Hungary
Austria
Germany
FranceRomania
Moldova
Czech RepublicBelgium
FINANCIAL TRANSPARENCY
Südzucker Group, page 71
Segment Sugar: Factory structure and cost savings
16
47
76
137 142
02468101214161820222426283032343638404244464850525456586062646668707274767880828486889092949698100102104106108110112114116118120122124126128130132134136138140142144146148150
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11e
** beet sugar factories and refineries
* including reductions in the context of factory closures
Factory structure Cost savings (in mn €)
8,1008,2188,59810,043
10,88511,67812,001
13,812
46 45 42 4133 32 32
52
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11e-100
-80
-60
-40
-20
0
20
40
Employees * Factories **
FINANCIAL TRANSPARENCY
Südzucker Group, page 72
Price development for raw and white sugar (NYMEX, LIFFE, EU)
150
250
350
450
550
650
750
13.0
1.20
09
13.0
3.20
09
13.0
5.20
09
13.0
7.20
09
13.0
9.20
09
13.1
1.20
09
13.0
1.20
10
13.0
3.20
10
13.0
5.20
10
13.0
7.20
10
13.0
9.20
10
13.1
1.20
10
13.0
1.20
11
Quo
tatio
n fo
r sug
ar in
€/ t
on
White sugar contract No. 5 LIFFE London (Future contract switching upon expiry)
Raw sugar contract No.11 NYMEX New York (Future contract switching upon expiry)
FINANCIAL TRANSPARENCY
Südzucker Group, page 73
Bioethanol: Further EU support fuels potential
0
500
1,000
1,500
2,000
FRA GER ESP UK POL SWE HUN AUT ITA Others
,000
m3
2008 2009
Source: BAFA
Source: F.O. Licht
Development EU bioethanol production
Fuel ethanol volume in Germany
0
500
1,000
1,500
2007 2008 2009
,000
m3
Bioethanol in ETBE Direct blending Bioethanol in E85
79.7% 58.7%22.4%
76.8%40.2%
19.2%1.1%
1.1%
0.8%
EU: Renewable Energies Directive Mandatory blending rate for renewable
energies of 10% in 2020 in transport sector
Introduction of sustainability criteria (i.e. reduction of greenhouse gas emissions by at least 35%)
Amendment of the Fuel Quality Directive Technical basis for EU-wide
introduction of E10
EU: demand for bioethanol to more than
triple by 2020*
Germany: Introduction of E10 from January 1, 2011 90% of all petrol-engine vehicles can use
E10 fuel without any problems
German market to grow up to 50%
* based on 2009 demand of 4.4 million m3
FINANCIAL TRANSPARENCY
Südzucker Group, page 74
Bioethanol: The alternative fuel
Convenient handling, comparable to fossil fuel Liquid; using existing tanks and station infrastructure Easy filling under atmospheric pressure with existing security systems
Established vehicle technology 10% (low blends): no modifications required High blends (E85): FFV modifications cheap with cost of up to 400 €/car
Non toxic, non hazardous, environmental friendly, sustainable CO2 Balance – sustainable production
Plant in Wanze: more than 60% greenhouse gas reduction Planz in Zeitz: more than 35% greenhouse gas reduction (excluding CO2 plant) Certification according to REDcert (Renewable Energy Directive certification)
Co-Products Natural hedge versus increasing input cost High-grade protein food and animal feed reduce imports (i.e. soybeans)
FINANCIAL TRANSPARENCY
Südzucker Group, page 75
Price development wheat and maize (Euronext, LIFFE)
110
120
130
140
150
160
170
180
190
200
210
220
230
240
250
260
13.1
1.20
09
13.1
2.20
09
13.0
1.20
10
13.0
2.20
10
13.0
3.20
10
13.0
4.20
10
13.0
5.20
10
13.0
6.20
10
13.0
7.20
10
13.0
8.20
10
13.0
9.20
10
13.1
0.20
10
13.1
1.20
10
13.1
2.20
10
13.0
1.20
11
€/ t
on
Wheat price (Future contract March 2011)
Price for maize (Future Contract March 2011)
FINANCIAL TRANSPARENCY
Südzucker Group, page 76
Segment Fruit – with leading positions in both divisions
Overview Division Fruit preparations: World market leader
Customers: dairy, baking and ice cream industry
Division Fruit juice concentrates: Leading European producer (market leader in apple juice concentrates)
Core competences Upgrading of agricultural raw material into
premium preliminary products for food industry
Global sourcing and distribution of fruit ingredients
Positioning & Strategy Shared customer base with segments/divisions sugar,
BENEO and starch
Accelerated organic growth Emphasis on expansion into attractive growth regions
(e.g. Brazil, Russia, China) Growth drivers:
Especially yogurt drinks rank among the fastest growing food products globally
Increase in awareness for healthy food and growing per-capita income (emerging markets)
Synergies / Production cost optimisation
780
AGRANA J&F Holding GmbH, Vienna
AGRANA Juice GmbH, Gleisdorf
AGRANA Fruit S.A. Paris
Fruit preparations
80% of segment revenues~35% world market share25 facilities on the globe
Fruit juice concentrates
20% of segment revenues~20% European market share10 facilities worldwide
Revenues (in mn €)
541
780 853 805 806
2005/06 2006/07 2007/08 2008/09 2009/10
12 months 915*
* Financial year adjustment
FINANCIAL TRANSPARENCY
Südzucker Group, page 77
Segment Fruit: Production facilities
FINANCIAL TRANSPARENCY
Südzucker Group, page 78
ContactHead of Investor RelationsNikolai Baltruschat Tel.: +49 (621) 421 - [email protected]
DisclaimerThis presentation contains forward looking statements based on assumptions and estimates made by the executive board of Südzucker AG. Although the executive board may be convinced that these assumptions and estimates are reasonable the future actual developments and future actual results may vary considerably from the assumptions and estimates due to many external andinternal factors. For example, matters to be mentioned in this connection include negotiations relating to the world trade agreement (WTA), changes to the overall economic situation, changes to EU sugar policies, consumer behavior and state food and energy policies. Südzucker AG assumes no responsibility and accepts no liability for future developments and future actual results achieved being the same as the assumptions and estimates included in this presentation.
Financial calenderPress and analysts‘ conference for 2010/11 May 18, 2011Q1 – 1st quarter report 2011/12 July 14, 2011Annual general meeting for fiscal 2010/11 July 21, 2011Q2 – 2nd quarter report 2011/12 October 13, 2011Q3 – 3rd quarter report 2011/12 January 12, 2012