Südzucker Group€¦ · Südzucker Group: Market Position ... Freiberger produces and markets...

Südzucker GroupThomas Kölbl (CFO)

HSBC – Zurich Investors ConferenceZurich, November 27, 2012

FINANCIAL TRANSPARENCY

Südzucker Group, page 2

Agenda

1. Overview and strategic objectives page 3

2. Development of Segments

� Sugar page 8

� Special Products page 16

� CropEnergies page 24

� Fruit page 30

3. Financial Highlights H1 2012/13 page 35

4. Outlook 2012/13 page 49

5. Appendix

� Long-term development and key figures page 52

� Additional information page 57



Südzucker Group at a glance

� Global operating German food group with long-standing corporate history:

� 1837: Foundation of first sugar company

� 1926: Foundation of SüddeutscheZucker-AG

� Production facilities: ~ 100

� Employees: ~17.500

� Beneficiary of mega trends within food, animal feed and energy area

� Operating profit: 751 mn €

� Stock exchange listing in Germany

� Market capitalisation ~ 6 bn €

� Free float 38%

� MDAX-member

� Trading volume: ~ 1 mn shares/day

Special

products

(26%)

Sugar

(53%)

Fruit

(13%)

CropEnergies

(8%)

Revenues 7.0 bn €



Südzucker Group: Market Position and Strategic Objectives

Segment/Division Market Position Strategy / Main Drivers

Sugar

BENEO

Freiberger

Starch

PortionPack

FruitPreparations

Fruit 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

� Merger with Ybbstaler to enhance growth and profitability

#1 in Europe� Further enhancement of leading market

position in Europe; especially in deficit markets

� Expedite internationalization; partnership with ED&F Man

#1 worldwide

#1 in Europe

#1 worldwide in Isomalt

and Oligofructose

#1 in Europe in frozen

Pizza (private label)

#1 in Europe in portion packs

One of the leading

players in Europe

� Leverage strength of core products into

product innovations

� Further internal and external growth

� Focus on specialty starches

� Development of product portfolio and regions

� Full exploitation of implemented capacity build-up

� Consolidation of the leading position

� Assessment of new production and regions



Südzucker portfolio benefits from megatrends

2.000

4.000

6.000

8.000

mn

Source: United Nations

population growth worldwide

0

2.000

4.000

6.000

8.000

USD

per capita income

Source: ERS International Macroeconomic Data Set

emerging markets

worldwide

0

20

40

60

80

100

120

0

20

40

60

80

100

USD / barrelmnbarrel / day

Source: BP

oil consumption

crude oil price200

400

600

800

mn t

Source: USDA

global animal feed production



Return on Capital Employed (RoCE)

Capital

Employed

Operating

Profit

Se

gm

en

tsG

rou

p

RoCE

CropEnergies

Fruit

Special Prod.

Sugar

2007/08

5,005 mn €

233 mn €

4.7%

10.0%

2.2%

8.8%

5.6%

2008/09

4,923 mn €

258 mn €

5.2%

8.2%

5.0%

8.4%

neg.

2009/10

7.5%

5,374 mn €

403 mn €

2.3%

7.5%

10.5%

5.5%

2010/11

9.8%

5,314 mn €

521 mn €

8.7%

10.4%

10.8%

6.7%

2012/13e2011/12

13.2%

5,707 mn €

751 mn €

10.2%

17.1%

10.7%

4.7%



Agenda



� Sugar page 8



� Fruit page 30



5. Appendix





Segment Sugar

(mn €) 2011/12 2010/11 2009/10 2008/09

Revenues 3.728 3.279 3.154 3.320

EBITDA 626 399 331 255

EBITDA-Margin 16,8% 12,2% 10,5% 7,7%

Operating profit 511 285 217 137

Operating Margin 13,7% 8,7% 6,9% 4,1%

Restructuring and special items 14 -3 -16 102

Income from operations (EBIT) 525 282 201 239

Investments 148 130 115 149

Fixed Assets 145 125 106 123

Financial Assets 3 5 9 26

Capital Employed 2.984 2.748 2.890 2.736

RoCE 17,1% 10,4% 7,5% 5,0%



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**

178 mn t

3-4 mn t

up to 0.4 mn t

max. ~1.4 mn t

Demand**

165 mn t

*Simplified, excl. isoglucose

**F.O. Licht estimate for 2011/12, July 2012

~3-4 mn t

CAGR 2-3%



EU quota sugar production - sugar marketing year* 2012/13

France

Germany

Belgium

Poland

Austria

Rumania

Moldova

20

72

40

25

25

100

39

35Hungary

100

CzechRepublic

Slovakia

Bosnia-

Hercegowina

Italy

Bulgaria

Greece

Spain

Portugal

Great Britain

* Sugar marketing year: Oct. – Sep.

** Südzucker estimates

Südzucker

Group

(24 %)

Nordzucker

(15 %)

All others

(17 %)

British Sugar

(11 %)

Tereos

(11 %)

Pfeifer &

Langen

(8 %)

Südzucker quota share per country (in %)Market share** EU quota sugar production

Non-EU productionSüdzucker distribution entities

Cristal

Union

(8 %)

Royal

Cosun

(7 %)



Mauritius cooperation strengthens distribution power in the EU

Mauritius

400,000 tonnes

sugar

� Exclusive distributor of ~ 400,000 tonnes p.a.

sugar contingent from Mauritius into the EU

until 2015

� Imported sugar volumeM

� Mleverages European distribution platform

� Msupports core regions

� Msupports 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)



Participation in ED&F Man at a glance

� Total sales 14.5 mn t

� Revenues 10 bn USD

� Profit from ordinary activities

192 mn USD

� Net Profit 76 mn USD

� Equity 683 mn USD

� Purchase 25% - 1 share via capital

increase

� Purchase price 255 mn USD

� At equity accounting

� Pro rata earnings contribution in

2012/13 - closing May 22, 2012

Key Figures 2010/11* Transaction overview

*Financial Year ended 30.09.2011



� Private, employee owned company

� Long-standing corporate history: founded 1783

� > 3,400 employees in 60 countries

� Headquarter: London

� Operations:

� Sugar:

� 8.8 mn t trading volume with signifivant presence in Central and South America,

Far East, South East Asia and Africa

� Participations in production and refining capacities amongst others in Russia, the

Ukraine, Mexico,Chile and Venezuela

� Marketing of coffee and molasses

� Trading in biofuels, edible oils as well as shipping and financial services

Sugar only

Liquid Products only

Coffee only

Multiple businesses

Participation in ED&F Man offers a global footprint



Segment Sugar: Outlook 2012/13

Revenues� Higher non-quota sugar volume in light of strong campaign 2011

� Possibility to market non-quota sugar of campaign 2011 in EU

food market again

Operating

Profit

� Stable EU price environment under precondition of ongoing

balanced market and high world market prices

� Besides stable quota sugar business increase in non-quota sugar

volume in light of strong campaign 2011

� Significant increase in operating profit

� Significant increase in revenues



Agenda



� Sugar page 8



� Fruit page 30



5. Appendix





Segment Special Products

(mn €) 2011/12 2010/11 2009/10 2008/09

Revenues 1.806 1.575 1.396 1.427

EBITDA 231 218 209 172

EBITDA-Margin 12,8% 13,8% 14,9% 12,1%



Restructuring and special items -4 -6 12 -4



Fixed Assets 74 67 50 60


Capital Employed 1.392 1.335 1.309 1.287

RoCE 10,7% 10,8% 10,5% 8,4%



Segment Special Products

�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 bioethanol

activities

�PortionPack: Various portioned

products; wide range of products of

food and non-food articles

Revenues (mn €)

* incorporates AGRANA bioethanol and starch activities

Revenue split 2011/12

Freiberger

29%

BENEO

(Functional Food)

21%

PortionPack

8%

Starch*

42%

1,806

mn €

1,161

1,283

1,427 1,396

1,575

1,806

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

CAGR 2006/07-2011/12: ~9 %



Segment Special Products: Division BENEO

� BENEO Group bundles Functional Food-operations

� Worldwide unchanging growing demand for FunctionalFood ingredients in view of increasing competition

� Increase in awareness for healthy food and growing per-capita income (emerging markets)

� Market leadership in main product categories

� 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 productinnovations Palatinose™ and galenIQ™

� BENEO-Remy (rice starches): e.g. rice starches, riceflours, rice bran, rice concentrates, M

� Exploitation of growth potential of our core products

� Development of new markets via innovations Offstein

�

��

�

Sales OfficesRegional Centers

� Production facility



Segment Special Products: Division Starch*

� 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

� New starch factory for production of wheat starch and gluten at the site of bioethanol plant in

Pischelsdorf. Investment 65 mn € (until 2013). Operations to start at the end of 2013.

* incorporates AGRANA bioethanol and starch activities

Pischelsdorf

Production starch

Gmünd (A)

Pischelsdorf (A)Aschach (A)

Szabadegyhaza (HU)

Tandarei (RO)

Production bioethanol



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

� Unrivalled European market leader for own label/private lable frozen pizzas

� Successful reconception of site in Westhoughton, UK

� Distribution center USA

Berlin

Osterweddingen

Westhoughton

Muggensturm

OberhofenProduction facilityMuggensturm



� 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 (restaurants, hotels, caterers) and food retailers, PortionPack

Europe also services industry (contract packing) and the advertising/promotion sectors

Segment Special Products: Division PortionPack Europe

Landgraaf (NL)

Barcelona

Prague

facility

Herentals (B)

Oud-Beijerland (NL)

Nuremberg

Telford

Prague

Krakow



Segment Special Products: Outlook 2012/13

� Revenue increase supported by all divisions.Revenues

Operating

Profit

� Operating profit on prior year’s level

� Moderate increase in revenues

� Based on the strong profit growth in the first half year, we

continue to expect that operating profit will build on the last

year‘s level despite distortions in the commodity markets

and the extremely competitive environment.



Agenda



� Sugar page 8



� Fruit page 30



5. Appendix





(mn €) 2011/12 2010/11 2009/10 2008/09

Revenues 529 437 362 319

EBITDA 84 76 33 29

EBITDA-Margin 15,9% 17,5% 9,2% 9,0%



Restructuring and special items -1 1 -2 -11





Capital Employed 519 530 525 221

RoCE 10,2% 8,7% 2,3% 8,2%

Segment CropEnergies



Segment CropEnergies: at a glance (I)

Revenues (mn €)

180

319362

437

529

2007/08 2008/09 2009/10 2010/11 2011/12

CAGR 2007/08-2011/12: ~31 %

� One of the leading producers in the

European bioethanol market and the

largest bioethanol producer in Germany

and Belgium

� Focus on bioethanol and food and animal

feed products from the bioethanol

production

� Production capacity

� > 700,000 m³ of bioethanol per year

� > 500,000 t of food and animal feed

products per year

� 100,000 t of liquefied CO2 per year

� Efficient production and logistic network

� Production sites in Zeitz, Wanze, and

Loon-Plage

� Tank storage in Duisburg and

Rotterdam

� Trading offices in Brazil and the USA Production facility Tank storage Trading

Houston

São Paulo

DuisburgRotterdam

ZeitzWanze

Loon-Plage



feed grain, sugar

Segment CropEnergies: at a glance (II)

Raw Material Input

Ou

tpu

t C

ap

acity

Fuel

Ethanol

Traditional

Alcohol

DDGS,

Gluten

Liquid Protein

(dry subst.)

Liquid CO2

(JV)

feed grain, sugar raw alcohol

360,000 m3 < 300,000 m3 100,000 m3

-

80,000 m3

260,000 t 55,000 t

90,000 t -

-

- -

-

100,000 t

Zeitz - Germany Wanze - Belgium Loon-Plage - France

-



75

3

7

13

22 2322

21

2

0

33

16 10 15

5 4 26 8

18 19 17

0

10

20

30

40

50

60

Wheat Maize Sugar Beet Sugar Cane

Palm fruit Soybean Sunflower Rapeseed

gC

O2E

q/M

J

Annual carbon release from palm extension on peat lands

Annual carbon release from forest biomass

Annual carbon release from carbon mineral soil

Ethanol Feedstock

Biodiesel Feedstock

Political environment: EU

Source: IFPRI (2011)

Crop specific LUC emission

� Implementation of the European climate and energy package progresses

� EU Commission approved 4 more certification systems in July 2012 including REDcert-EU

� Now 12 certification systems altogether are applicable throughout the EU

� EU Commission discusses draft directive to take indirect land use changes (iLUC) into account

� Cap of 5% on crop-based biofuels

� Increase of GHG threshold to 60% for new installations

� Introduction of iLUC emission values

� Quadruple counting of certain waste-based biofuels

� Setback in EU energy and climate policy

� Anti-dumping and anti-subsidy proceedings

� Damage to EU producers acknowledged

� No provisional countervailing duties but decision to register bioethanol imports from the USA

Source: Evaluation of EU member states national action plans

EU consumption of Fuel Ethanol

0

5

10

15

20

2010 2012 2014 2016 2018 2020

mil

lio

n m

3

France Germany Italy Poland

Spain Sweden UK Others

5.7

8.19.2

10.6

12.6

14.5



Segment CropEnergies: Outlook 2012/13

� Higher production and sales volume of bioethanolRevenues

Operating

Profit

� Despite higher raw material costs, earnings will improve

substantially

� Increase in operating profit to 62 - 68 million €

� Further increase in revenues



Agenda



� Sugar page 8



� Fruit page 30



5. Appendix





Segment Fruit

(mn €) 2011/12 2010/11 2009/10 2008/09

Revenues 929 870 806 805

EBITDA 74 81 72 33

EBITDA-Margin 7,9% 9,4% 8,9% 4,0%

Operating profit 38 46 36 -5

Operating Margin 4,1% 5,4% 4,4% neg.

Restructuring and special items -1 0 -4 0

Income from operations (EBIT) 37 46 32 -5




Capital Employed 812 702 650 679

RoCE 4,7% 6,7% 5,5% neg.



Production facility

Segment Fruit – with leading positions in both divisions

� Overview

� Division Fruit preparations: World market leaderCustomers: 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)

� Further growth via fruit juice concentrates merger

� Reorganisation measures in division fruit preparations

AGRANA J&F Holding GmbH

YBBSTALER

AGRANA JUICE

GmbH

AGRANA Fruit S.A.S.

Fruit preparations

~70% of segment revenues

⅓ of world market

27 facilities worldwide

Fruit juice concentrates

~30% of segment revenues

European market leader

14 facilities worldwide



Joint venture Ybbstaler Agrana Juice GmbH at a glance

� Production and distribution of fruit

juice concentrates

� 14 production facilities

� Cumulative revenues

approx. 350 mn € p.a.

� Leading European market position

� Improved coverage of raw material

areas with production facilities

� Balance between own production

and merchandise

� AGRANA participated in JV with

50,01 %

� Fully consolidated by AGRANA

� Pro rata earnings contribution in

2012/13 - closing June 1, 2012

Key data Transaction overview



Segment Fruit: Outlook 2012/13

Revenues� Revenue increase in division fruit preparations as well as in division

fruit juice concentrates

Operating

Profit

� Improvement in operating profit

� Increase in revenues

� Operating profit in the first half of fiscal 2012/13 was higher than in

the second half of 2011/12

� For fruit preparations, the recovery will continue to be driven by

further volume increases

� Profit contributions from Ybbstaler are expected to stabilize

operating profit for fruit juice concentrates at last year‘s level



Agenda



� Sugar page 8



� Fruit page 30



5. Appendix





Group income statement

(mn €) 2012/13 2011/12 +/- in % 2012/13 2011/12 +/- in %

Revenues 2.031 1.699 19,6 3.917 3.338 17,4

EBITDA 351 211 66,3 663 442 49,9

EBITDA margin 17,3% 12,4% 16,9% 13,2%

Depreciation -52 -48 9,2 -101 -95 6,3

Operating profit 299 163 83,0 562 347 61,8

Operating margin 14,7% 9,6% 14,3% 10,4%

Restructuring costs and special items 2 -10 - 2 -10 -

Income from operations 301 153 96,4 564 337 67,2

Net earnings for the period attributable to Südzucker

shareholders 174 52 > 100 395 145 > 100

Earnings per share (€) (undiluted) 0,92 0,28 > 100 2,09 0,76 > 100

Cash flow 295 158 86,5 547 349 56,7

Investments in fixed assets 95 65 45,6 153 114 34,4

Net financial debt (as of reporting date) 816 768 6,2

Average number of employees 17.826 17.492 1,9

2nd quarter 1st half year



Financial Highlights – H1 2012/13

� Group revenues up 17 % to 3,917 (3,338) million €

� Operating profit increased 62 % to 562 (347) million €

� Cash flow up 57 % to 547 (349) million €

� Earnings per share rises to 2.09 (0.76) € (incl. one-off

positive tax effect of 0.40 €)

� Net financial debt slightly increased by 48 million €

to 816 (768) million €

Q2 group revenues and group operating profit reported on 25 September 2012



Segment Sugar: Development 1st half year 2012/13

� Revenues: The significant increase was driven mainly by higher sugar sales revenues

resulting from higher world market prices. The improved harvest in 2011 and

the available export quotas also led to more exports.

� Operating profit: The increase in operating profit is mainly driven by higher sugar revenues.

Commodity costs were also up sharply. While last year only price level in

Eastern Europe tracked world market prices on account of various contracts

terms, in fall of 2011 sales revenues in Western Europe catched up.

(mn €) 2012/13 2011/12 +/- in % 2012/13 2011/12 +/- in %

Revenues 1.120 899 24,5 2.117 1.728 22,6

EBITDA 237 121 95,8 444 245 80,6

EBITDA margin 21,3% 13,5% 21,0% 14,2%

Depreciation -13 -13 5,4 -27 -25 4,7

Operating profit 224 108 > 100 417 220 89,6


1st half year 2nd quarter



Segment Special Products: Development 1st half year 2012/13

� Revenues: Higher revenues in H1 mainly due to higher sales revenues.

� Operating profit: The operating profit development exceeded our expectations. The

starch division's operating profit was higher than last year, driven by

higher prices for sweeteners and isoglucose, especially in Q2. Together,

the BENEO, Freiberger and PortionPack divisions also contributed to the

higher profits. Higher commodity costs were partly offset by higher sales

revenues driven by a favorable currency exchange rate.

(mn €) 2012/13 2011/12 +/- in % 2012/13 2011/12 +/- in %

Revenues 466 446 4,6 927 896 3,4

EBITDA 61 46 31,9 124 105 18,1

EBITDA margin 13,0% 10,3% 13,3% 11,7%

Depreciation -21 -19 11,2 -41 -38 8,5






Segment CropEnergies: Development 1st half year 2012/13

� Revenues: Strong increase in revenues is mainly due to higher bioethanol volumes, and

now also higher sales revenues.

� Operating profit: The CropEnergies segment's operating profit in the second quarter was up

sharply. The negative impact of higher commodity prices was more than

offset by higher sales revenues from food and animal feed, improved

capacity utilization and the associated volume growth and now also higher

ethanol sales revenues.

(mn €) 2012/13 2011/12 +/- in % 2012/13 2011/12 +/- in %

Revenues 147 130 13,7 300 253 18,6

EBITDA 30 22 41,4 53 45 19,6

EBITDA margin 20,6% 16,6% 17,7% 17,6%

Depreciation -8 -8 3,9 -16 -16 2,6






Segment Fruit: Development 1st half year 2012/13

� Revenues: Volume and sales revenues were higher than the year prior. The joint

venture company YBBSTALER AGRANA JUICE GmbH has been fully

consolidated since the second quarter.

� Operating profit: On the heels of the negative developments in prior quarters, fruit

segment was able to extend growth in operating profit that started in

the first quarter into the second quarter approaching the prior year's

results. But volume growth and higher sales revenues, as well as the profit

contribution from the now joint venture company Ybbstaler fully

consolidated since second quarter, were not enough to fully offset

significantly higher costs.

(mn €) 2012/13 2011/12 +/- in % 2012/13 2011/12 +/- in %

Revenues 298 224 33,1 573 461 24,3

EBITDA 23 22 0,0 42 47 -11,2

EBITDA margin 7,4% 9,9% 7,3% 10,3%

Depreciation -10 -8 15,7 -17 -16 7,5

Operating profit 13 14 -9,4 25 31 -21,0





Income statement (I)

� Income from companies consolidated at equity:

� Result includes the company's share of earnings from a joint-venture distributor and those

of ED&F Man, which impacted the second quarter for the first time.

� Financial result:

� The financial result improved by 26 million €. Net interest expense was down sharply by

13 million €, in spite of an increase in average debt compared to last year of about

170 million €. Campaign financing using short-term commercial papers with low 1 – 3

month Euribor interest rates had a positive impact. The cost of other financing activities

improved by 13 million €. The driving factor here was the strengthening of Eastern

European currencies against the euro. Last year, the results included currency exchange

losses related to euro financing of Eastern European subsidiaries.

(mn €) 2012/13 2011/12 +/- in % 2012/13 2011/12 +/- in %

Revenues 2.031 1.699 19,6 3.917 3.338 17,4


Restructuring costs and special items 2 -10 - 2 -10 -

Income from operations 301 153 96,4 564 337 67,2

Income from companies consolidated at equity 6 -1 - 7 0 > 100

Financial result -8 -40 -80,0 -33 -59 -44,1

Earnings before income taxes 299 112 > 100 538 278 93,5




Income statement (II)

� Taxes on income:

� Lower tax result due to a one-time deferred tax income of 76 million € in Q1.

� Minority interests:

� The co-owners of the AGRANA and CropEnergies Groups account for most of the other

minority interests' share of net earnings.

� Earnings per share:

� EPS increased to 2.09 € per share, incl. one-off positive tax effect of 0.40 €.

(mn €) 2012/13 2011/12 +/- in % 2012/13 2011/12 +/- in %

Earnings before income taxes 299 112 > 100 538 278 93,5

Taxes on income -79 -27 > 100 -55 -63 -12,6

Net earnings for the year 220 85 > 100 483 215 > 100

of which attributable to Südzucker shareholders 174 52 > 100 395 145 > 100

of which attributable to hybrid capital 7 7 0,0 13 13 0,0

of which attributable to minority interests 39 26 52,2 75 57 30,5

Earnings per share (€) 0,92 0,28 > 100 2,09 0,76 > 100




Cash flow statement

� Cash flow: The increase is due to the growth in operating profit. Final installments of

monies owing for beets from last year's campaign in March 2012 were covered by

income from the disposal of sugar inventories between March 1, 2012 and

August 31, 2012. This is reflected in the change in working capital, which remained

almost constant.

� Investments: Investments in fixed assets were mainly for replacements and, among other things,

for the construction of a wheat starch factory.

(mn €) 2012/13 2011/12 +/- in % 2012/13 2011/12 +/- in %

Cash flow 295 158 86,5 547 349 56,7

Increase (-)/ Decrease (+)

in working capital 422 256 64,9 -9 38 -

Investments in fixed assets

Sugar segment 66 35 89,9 98 59 67,4

Special products segment 17 18 -9,8 33 30 9,5

CropEnergies segment 3 4 -13,9 8 9 -15,2

Fruit segment 9 8 7,3 14 16 -10,0

Total investments in fixed assets 95 65 45,6 153 114 34,4

Investments in financial assets/acquisitions 0 7 -100,0 181 9 > 100

Dividends paid -208 -167 24,2 -208 -167 24,1




Balance sheet

� Increase in current and non-current assets:

� The increase in current assets is largely due to the price and volume-driven increase in inventories. The

increase in non-current assets is mainly due to the acquisition of an interest in ED&F Man.

� Increase in non-current and in current liabilities:

� Non-current liabilities rose primarily in light of higher provisions for pensions and similar obligations due to

valuation adjustments. The decrease of current liabilities is primarily the result of repaying the € 500 million

2002/2012 bond in February 2012.

(mn €) 31.08.2012 31.08.2011 +/- in %

Assets

Non-current assets 4.325 4.043 7,0

Current assets 3.524 3.400 3,7

Total assets 7.849 7.443 5,5

Liabilities and shareholders' equity

Shareholders' equity 4.305 3.722 15,6

Non-current liabilities 1.915 1.647 16,3

Current liabilities 1.629 2.074 -21,4

Total liabilities and shareholders' equity 7.849 7.443 5,5

Net financial debt 816 768 6,2

Equity ratio 55% 50%

Net financial debt in percent of equity (gearing) 19% 21%



Liquidity profile end of period

(mn €) Q2 2012/13 Q1 2012/13 Q4 2011/12 Q3 2011/12 Q2 2011/12

Net financial debt -816 -1.223 -791 -690 -768

Cash & cash equivalents / securities 641 489 715 1.057 1.117

Gross financial debt -1.456 -1.713 -1.506 -1.747 -1.885

Long-term financial debt -1.003 -980 -931 -855 -824

Short-term financial debt -453 -732 -574 -892 -1.060

Bank credit lines: 1.159 1.068 1.103 1.102 1.007

undrawn 600 523 410 499 368

Syndicated loan facility (July 2012) 600 600 600 600 600

undrawn 600 600 600 600 600

Commercial paper program 600 600 600 600 600

undrawn 500 230 450 600 600

Bank credit lines (undrawn) 600 523 410 499 368

+ Cash & cash equivalents / securities 641 489 715 1.057 1.117

+ Syndicated loan (undrawn) 600 600 600 600 600

+ Commercial paper (undrawn) 500 230 450 600 600

= Total liquidity reserves 2.340 1.842 2.175 2.756 2.685

� Ad-hoc release November 21, 2012: Buy back of outstanding convertible bonds (repurchase amount 490 mn €) and capital increase (gross proceeds 451 mn €)



283

45 45 58

700

500

400

2012 2013 2014 2015 2016 2017 2018 2019

EUR-Bond

Hybrid

Promissory Note

Convertible Bond

February

Financing maturity profile (I) *(mn €) as of August 31, 2012

600 mn € Commercial Paper Programm (perpetual)

600 mn € Syndicated Loan

* Displayed to 2019; 10-year tranche of Agrana promissory note in the amount of 7 mn € due in 2022;

** Ad-hoc release November 21, 2012: Buy back of outstanding convertible bonds (aggregate principal amount 268.55 mn €)

**



Financing maturity profile (II) (as of August 31, 2012)

5.25% Hybrid Bond 2005/2015, 700 mn €

� Perpetual; first issuer call right June 2015June 2015

2.50% Convertible Bond 2009/2016, 283 mn €

� Issuer Call after 4 years; Investor Put after 5 yearsJune 2016 *

Syndicated loan, 600 mn €, no covenants

� Margin 60 bp, short-term borrowing facility 1 week < 1 yearJune 2016

4.125% Bond 2011/2018, 400 mn €March 2018

Commercial Paper-Program, 600 mn €

� Drawn lines 2012/13 Q2: 100 mn €Perpetual

Agrana promissory note, 110 mn €April 2017/19/22(Placement April 2012)

5.75% Bond 2002/2012, 500 mn €February 2012

5.90% Südzucker promissory note, 45 mn €April 2014

* Ad-hoc release November 21, 2012: Buy back of outstanding convertible bonds (aggregate principal amount 268.55 mn €)



Agenda



� Sugar page 8



� Fruit page 30



5. Appendix





Outlook 2012/13 (I)

Operating Profit2011/12 2012/13e

Sugar

Revenues2011/12 2012/13e

Special

Products

CropEnergies

Fruit

Group 7.0 bn € > 7.5 bn € 751 mn € > 900 mn €

3.7 bn €

1.8 bn €

529 mn €

929 mn €

511 mn €

149 mn €

53 mn €

38 mn €

62-68 mn €



* incl. ED&F Man; excl. positive effect from buy back of outstanding convertible bonds (approx. 260 mn €)

EBITDA 1,015 mn €

Outlook 2012/13 (II)

Investments

Fixed Assets276 mn €

Net Financial

Debt791 mn €

Investments

Finan. Assets10 mn €

RoCE 13.2 %

212/13e

2012/13e2011/12

~ 400 mn €

~ 800– 900 mn € *

ED&F Man

255 mn USD



Agenda



� Sugar page 8



� Fruit page 30



5. Appendix





Südzucker with strong capital market presence

* as of February 29, 2012 incl. hybrid bond

** Ad-hoc release November 21, 2012: Buy back of outstanding convertible bonds (aggregate principal amount 268.55 mn €)

*** Capital increase on November 21, 2012: Number of shares adjusted from 189.3 mn shares, gross proceeds 451 mn €

**** first issuer call right by Südzucker as of June 2015

Südzucker ShareSüdzucker Bonds

(mn €) Due date Coupon Nominal value

Convertible bond 30.06.2016 2,50% 283,5

Bond 2011/18 29.03.2018 4,125% 400,0

Hybrid bond 2005/15 ** 5,25% 700,0

**

52%38%

10%

SZVG Free Float Zucker Invest GmbH

204.0 mn shares***

31%

7%

62%

Liabilities to banks Others Bonds

Financialliabilities*

****



Rating ratios improved

Rating agency Long-term rating Short-term rating

BBB+ *

Stable outlook

Baa 1 **

Positive outlook ***

A – 2

P – 2

Net Financial Debt/

Cash flow

2008/09 2009/10 2010/11 2011/12

3.2x 1.9x 1.4x 1.0x

* since June 2012

** since January 2012

*** since August 2012



Pre-Reform

Actual Actual Actual Actual Actual Actual Actual Actual Actual Outlook

(mn €) 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13e

Revenues 4.575 4.827 5.347 5.765 5.780 5.871 5.718 6.161 6.992 > 7.500

EBITDA 677 724 669 682 489 489 645 775 1.015

EBITDA-Margin 14,8% 15,0% 12,5% 11,8% 8,5% 8,3% 11,3% 12,6% 14,5%

Operating profit 479 523 450 419 233 258 403 521 751 > 900

Operating Margin 10,5% 10,8% 8,4% 7,3% 4,0% 4,4% 7,0% 8,5% 10,7%

Income from operations (EBIT) 446 491 397 -129 189 345 392 513 759

Earnings before income taxes (EBT) 394 457 328 -227 120 232 348 443 660

Net earnings 307 358 305 -246 100 183 276 346 515

thereof to SZ AG shareholders 255 297 242 -326 19 162 200 252 377

Market capitalization 2.718 2.828 4.206 3.024 2.746 2.587 3.230 3.768 4.117

Closing price on February 28/29 15,55 16,18 22,21 15,97 14,50 13,66 17,06 19,90 21,75

Earnings per share (€) 1,48 1,67 1,36 -1,72 0,10 0,86 1,06 1,33 1,99

Dividend per share (€) 0,50 0,55 0,55 0,55 0,40 0,40 0,45 0,55 0,70

Cash flow 522 550 527 554 498 504 553 606 823

Investments in fixed assets 307 500 426 537 497 384 216 245 276 ~ 400

Investments in financial assets/acquisitions 181 590 216 62 53 40 17 6 10 ~ 181

Total investments 488 1.090 642 599 550 424 233 251 286

Capital Employed 4.091 4.646 5.221 4.767 5.005 4.923 5.374 5.314 5.707

RoCE 11,7% 11,3% 8,6% 8,8% 4,7% 5,2% 7,5% 9,8% 13,2%

Total Assets 6.038 7.195 7.926 7.932 7.917 7.709 7.398 7.260 8.289

Equity 2.386 2.738 3.733 3.362 3.299 3.230 3.443 3.687 3.969

Equity Ratio 39,5% 38,1% 47,1% 42,4% 41,7% 41,9% 46,5% 50,8% 47,9%

Net Financial Debt (NFD) 1.100 1.672 1.177 811 1.508 1.632 1.065 854 791 ~ 800 - 900

Gearing (NFD/Equity) 46,1% 61,1% 31,5% 24,1% 45,7% 50,5% 30,9% 23,2% 19,9%

Transition Period Post-Transition Period

Long-term development (I)

*

* Extraordinary impact from Goodwill impairment loss

** Investment in ED&F Man

*** incl. investment in ED&F Man; excl. positive effect from buy back of outstanding convertible bonds (approx. 260 mn €)

**

***



Long-term development (II)

Sugar Special Products FruitCropEnergies

522 550 527 554498 504

553606

Cash flow (mn €)823

Revenues (bn €)

4.64.8

5.3 5.8 5.8 5.9 5.76.2

7.0 >7.5

Operating Profit (mn €)

479523

450 419

233 258

403

521

751

>900

1,100

1,672

1,177

811

1,5081,632

1,065

854 791

Net Financial Debt (mn €)

NFD/CF 2.1x 3.0x 2.2x 1.5x 3.0x 3.2x 1.9x 1.4x 1.0x

800-900

* incl. investment in ED&F Man; excl. positive effect from buy back of

outstanding convertible bonds (approx. 260 mn €)

*



Agenda



� Sugar page 8



� Fruit page 30



5. Appendix





Revenue by region 2011/12

Germany

(25 %)

EU 15

(41 %)

Rest of world

(17 %)

6,992 mn €

EU 12

(17 %)



Segment Sugar: Campaign SMY 2011/12

� Beet growers: 43,000 (44,600)

� Beet acreage: 412,000 (388,000) ha

� Sugar factories (incl. refineries): 32 (32)

� Beet processing: 31.3 (26.1) mn tons

� Sugar production: 5.4 (4.2) mn tons

� thereof from beets: 4.9 (3.9) mn tons

� thereof raw sugar raffination: 0.5 (0.3) Mio. t



Südzucker well positioned in „Beet Belt“

Poland

Slovakia

Hungary

Austria

Germany

France

Romania

Moldova

Czech Republic

Belgium



Price development for raw and white sugar (NYMEX, LIFFE, EU)

100

200

300

400

500

600

700

Ja

n-1

1

Fe

b-1

1

Ma

r-1

1

Ap

r-11

Ma

y-1

1

Ju

n-1

1

Jul-

11

Au

g-1

1

Se

p-1

1

Oc

t-11

No

v-1

1

Dec

-11

Ja

n-1

2

Fe

b-1

2

Ma

r-1

2

Ap

r-12

Ma

y-1

2

Ju

n-1

2

Jul-

12

Au

g-1

2

Se

p-1

2

Oc

t-12

No

v-1

2

Qu

ota

tio

n f

or

su

gar

in €

/ to

n

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)

100

200

300

400

500

600

700

No

v-0

8

No

v-0

9

No

v-1

0

No

v-1

1

No

v-1

2

Qu

ota

tio

n f

or

su

gar

in €

/ to

n



0

50

100

150

200

250

Jul 11 Sep 11 Nov 11 Jan 12 Mar 12 May 12 Jul 12

,00

0 t

France Germany

Developments in the EU bioethanol market

� EU bioethanol consumption expected to increase by 7.3% to 5.9 million m3

� Bioethanol consumption increased in Germany from Jan. to July 2012 by 7.6% to 925,000 m³

� Direct blending amounted to 87% and remained the main use of bioethanol

� Bioethanol for ETBE amounted to 12%

� Petrol quota at 4.3% in July

� Stable E10 consumption despite controversial media discussion

� E10 sales from January to July 2012 amounted to 1.49 million t (906,000 t)

� In July 2012, the E10 market share was 14.7% of the German petrol market

Source: BAFA

Bioethanol Consumption in Germany

E10 Sales in France and Germany

Source: BAFA, SNPAA

4,4% 4,2% 4,3%4,1% 4,3%

4,5% 4,3%

0%

2%

4%

6%

0

50

100

150

Jul 11 Sep 11 Nov 11 Jan 12 Mar 12 May 12 Jul 12

,000 m

3

Direct blending Bioethanol in ETBE Bioethanol in E85 Petrol quota



Regarding EU mobility, ethanol has still biggest potential

Raw material

availability EU

(279 mn t)

Vehicle fleet

Germany (as of January 1,

2012 (KBA))

Versatility of

ethanol

applications

� 4% vs. 7% “greening” set-aside plans EU

Electric drive 4,541 0.0%

Hybrid system 47,642 0.1%

Internal combustion engine 42,875,464 99.9%

Gasoline 30,452,019 70.9%

CNG 74,843 0.2%

Total 42,927,647

� Low blend (E5, E10, E20)

� Octane (RON) booster ETBE

� High blend E85 for FFV cars

EU harvest projection 2012/13

60%

24%

3,6%2%

12%

Cattle Feeding

Food

Bioethanol

Net export incl. D stocks

Others

279 mn t

∆



Price development wheat and maize (Euronext, LIFFE)

100

120

140

160

180

200

220

240

260

280

300

Ja

n-1

1

Fe

b-1

1

Ma

r-1

1

Ap

r-11

May-1

1

Ju

n-1

1

Jul-

11

Au

g-1

1

Se

p-1

1

Oc

t-11

No

v-1

1

De

c-1

1

Ja

n-1

2

Fe

b-1

2

Ma

r-1

2

Ap

r-12

May-1

2

Ju

n-1

2

Jul-

12

Au

g-1

2

Se

p-1

2

Oc

t-12

No

v-1

2

€/

ton

Wheat price (Future contract switching upon expiry) Price for maize (Future contract switching upon expiry)

100

120

140

160

180

200

220

240

260

280

300

No

v-0

8

No

v-0

9

No

v-1

0

No

v-1

1

No

v-1

2

€/

ton



Contact

Head of Investor Relations

Nikolai Baltruschat

Tel.: +49 (621) 421 - 240

[email protected]

Disclaimer

This 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 and

internal 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.

This presentation includes percentage and number rounding.

Financial calender

Q3 – 3rd quarter report 2012/13 January 10, 2013

Press and analysts‘ conference fiscal 2012/13 May 16, 2013

Q1 – 1st quarter report 2013/14 July 11, 2013

Annual general meeting for fiscal 2012/13 August 1, 2013

Q2 – 1st half year report 2013/14 October 10, 2013

Q3 – 3rd quarter report 2013/14 January 13, 2014

Südzucker Group€¦ · Südzucker Group: Market Position ... Freiberger produces and markets...

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Transcript of Südzucker Group€¦ · Südzucker Group: Market Position ... Freiberger produces and markets...