International Strategy of AGRANA
CEO DI Johann Marihart, AGRANA Beteiligungs-AG
Market position
SUGAR
Leading sugar manufacturer in Central, Eastern and
Southeastern Europe
STARCH
FRUIT
Major manufacturer of custom starch products in Europe and
largest producer of bioethanol in Austria and Hungary
World market leader in the production of fruit preparations
One of the largest producers of fruit juice concentrates in
Europe (new JV with Ybbstaler)
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Int. Production Meets Int. Customers
53 production sites worldwide
fruit
starch
sugar
7 sugar beet plants
4 starch plants
27 Fruit preparation plants
2 raw sugar refineries
2 Bioethanol facilities
11 Fruit juice concentrate plants
Countries with production sites
main markets
Starch plant
Bioethanol site
Czech Rep.
Slovakia
Austria
Hungary
Romania
BosniaHerzegovina
Countries with plants
Other markets
Bulgaria
Beet sugar plant
Raw sugar refinery
Distribution Center
Countries with production sites
Potential growth regions
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AGRANA − At a glance
AGRANA products you meet everyday
SUGAR.
STARCH.
FRUIT.
• Sugar is sold
- to consumers via the food
trade (20%) and
- to manufacturers: e.g. soft drinks
industry, confectionery industry,
fermentation industry, other food
and beverage industries (80%).
• AGRANA produces starch and special
starch products.
• Starch is a complex carbohydrate which
is insoluble in water. Starch is used in
food processing e.g. as thickener and
for technical purposes e.g. in the paper
manufacturing process.
• Bioethanol is part of our starch
business.
• Fruit juice concentrates customers are
fruit juice and beverage bottlers and
fillers.
• Fruit preparations are special
customized products for
- the dairy industry,
- the baked products industry,
- the ice-cream industry.
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AGRANA’s Revenue by Segment
€m
+20.2%
1,624.4
Fruit
Sugar
+5.3 %
673,4
639,7
+38.4 %
587,5
424,6
+23.4 %
560,1
Q1-3 2010|11
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Starch
1,952.2
691,4
Q1-3 2011|12
Q1-3 2010|11
Q1-3 2011|12
34.5
%
35.4
%
39.4
%
26.1
%
34.5
%
30.1
%
AGRANA’s Operating Profit by Segment*
Operating margin
Fruit
Starch
Sugar
€m
198.7
+89.6%
104.8
35.4
43.5
26.0
Q1-3 2010|11
+2.3%
36.2
68.2
+56.8%
94.3
4.6%
24.8
%
13.6%
33.7
%
>+100%
5.5%
Q1-3 2011|12
41.5
%
10.2%
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Q1-3 2011|12
Q1-3 2010|11
18.2
%
5.4%
47.5
%
34.3
%
11.6%
* Operating Profit before exceptional items
AGRANA − Volume Split
Inbound 9 Mio. tons raw material…
…Outbound 4 Mio. t finished products
Part of total
fruit 15 %
Products
5%
Raw Material
10 %
Raw Material
44 %
Products
11 %
Part of total
starch 27 %
Raw Material
16 %
Part of total
sugar 58 %
Products
14 %
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Which Volumes Have To Be Handled…
• AGRANA moves ~ 13 mio tons p.y. worldwide
o Would be ~ 520.000 trucks p.y. or > 1.400 trucks/day
o Transport costs of apx. € 150 mio p.y.  ~ 8% or our total costs
o Wide range of transport types are used
- railways
- vessels
- trucks
- multimodal solutions
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AGRANA´s Vision and Mission
• Vision and Mission
At AGRANA, we all share one vision - to be the world quality leader
in refining agricultural raw materials into sugar, starch and processed fruits.
Our passion for quality and efficiency makes AGRANA the natural choice of
food companies and for technical applications worldwide.
AGRANA – The natural upgrade.
• AGRANA is a multinational enterprise based in Austria. AGRANA’s Sugar
segment and Starch segment operate in Europe. Its Fruit segment has global
presence. In these markets, AGRANA’s goal is to be a leader in the industrial
refining of agricultural raw materials.
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Status of Enterprises
Growth
Maturity
Turnaround
Turnaround – crisis
Growth – humble
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Pace / Speed
Common Sense
Experience (prejudice)
Clarity
Results
Low Risk
Liquidity
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Quality
Analysis
Creativity
Consensus
Methodical Approach
Opportunity
Profitability
Maturity – pride
•
•
•
•
•
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Pedantry
Paralysis
Imagination runs wild
Coalition
Rituals
Game
Megalomania
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AGRANA´s History and Growth Strategy
• AGRANA is a local acting company in 1988
o 1988: AGRANA Holding is founded as a result of the consolidation of Austria´s sugar
and starch industries
• 1st Stage: Internationalisation „more of the same“
o 1990 – 2001: dynamic expansion into the sugar and starch markets of CEE
o 1991: IPO
• 2nd Stage: Growth by Diversification
o 2003: Diversification and start of the fruit business
o 2005: SPO
o 2006: Start of bioethanol activities. Sites in Pischelsdorf/NÖ and Hungrana/H
o 2008: first JV for apple juice concentrate in Xianyang/China
Acting proactive vs. Reacting!
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AGRANA’s Shareholder Structure
• Shares outstanding: 14,202.040
• Market capitalization (as of 10 April 2012): ~ 1,120.0 ~m€
10.5%
Raiffeisen Bank Coop.
Lower Austria
ZBG
~ 80%
Free Float
24.5%
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Südzucker
~ 50%
~ 50%
Z&S
Zucker und Stärke
Holding AG
75.5%
AGRANA´s Core Competences
• Sourcing agricultural raw materials
• Handle a global raw material flow and be specialized in big
quantities
• Manage production processes in a lean way, but with highest
quality standards, from commodities up to tailor made products
• Serve industrial customer markets with high customer
satisfaction
• Develop innovative processes, methods and products
• Manage and administrate small and mid size operations
worldwide
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AGRANA − Strategy = Synergy
Investor and customer value from:
•
Balance of risk
•
Exchange of know-how
•
Cost savings through synergies
The strategic goals
SUGAR:
Customer- and market-oriented growth
in CEE and Southeastern Europe.
STARCH:
Organic growth, and adding value by tailormade products.
Sugar
Central,
Eastern and
FRUIT:
Customer- and market-oriented global growth.
Starch
Fruit
Europe
Global
Southeastern
Europe
Refining of agricultural raw materials
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SYNERGIES:
Use synergies between business segments to
position the Group optimally for the
increasingly volatile operating environment in
the segments.
CAPITAL MARKET:
A long-term asset for shareholders.
AGRANA − Strategic Position
The beginning is always
soil...
AGRANA refines
agricultural raw
materials...
AGRANA is preferred
supplier for int. brands...
We all consume AGRANA
products every day...
Industrial pre-products
„B2B“
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Key Strategic Choices
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Consolidation of the local business
Growth in the core business
Going public
Partnership (if you can‘t beat them, join them)
Diversification
Internationalisation
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AGRANA‘s Competency Wheel
Strategic Orientation
Teamleadership &
Cooperation
Profitize
Management
Competencies
Market &
Customer
Orientation
Common
Values
Growth
Competitiveness
Challenge
Change
Achievement
Orientation
Commitment
Innovation &
Change
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How effectiv is our Organisation?
Marketing Manager
Human Resources
Manager
Logistic Manager
Security Manager
IT Manager
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More than Management
“Leaders do the right things,
while managers do things right.”
Warren G. Bennis
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I was guided by Peter Drucker
• Investigate thoroughly (Due diligence)
• Don‘t pay too much (resist your will to succeed, don‘t pay silly
prices, let your competitor do the nonsense)
• Integrate quickly (not hesitating in structuring …)
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The practice of International Management
Management-Tools used
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Cash pooling
Net financial debts report
P&L monthly
Forecasts every quarter
„Quick report“
Sales reports monthly
Production reports daily
Performance indicator
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Leadership competencies in AGRANA
• Making complex decisions
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• Open minded attitude towards
people and change
•
• Personal commitment
•
• Goal-orientated work style
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• Evaluate employees
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• Market and customer orientation
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Task-and result-orientated
approach
Strategic orientation
Handling complex relationships
Inspire others
Foster innovation and be open
for change
People’s skills
• Professional competences as prerequisites
• Focus on Soft Skills:
o
o
o
o
o
o
Empathy
Orientation on the employee
Personal development
Team building
Positive and encouraging work atmosphere
Social responsibility
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AGRANA − Strategy
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•
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Sugar
Segment
• Energy/CO2-optimization
• adopt organisational structures
to given frameworks
• refinement
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find and manage synergies
standardize best practice
R&D know-how transfer
evaluate potential acquisitions
provide services for divisions
Starch
Segment
• focus on speciality strategy
• extend bioethanol capacities
• entering wheat-starch production
Fruit
Segment
• organic growth
• diversification of customer portfolio
• Added Value -> system supplier
“Don’t react – anticipate and act.”
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Challenges of our Business Areas
• Increase of volatility of agricultural raw materials (soft commodities) driven
by weather impacts, growing demand and high speculation
• Customer consolidation process leads to higher pricing pressure
• Regulatory changes (opening markets, WTO regulations, increasing tightening
of traceability and labeling etc.)
• Increasing competition from global suppliers (from Brazil, China etc.)
• Increasing quality requirements from costumers (without willingness to
compensate the costs)
• A period of slowing global market growth ahead
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Conclusion
• AGRANA has become an international company
• Focus on our strengths -> more of the same, world wide role out
• Lean cost structure
• Being the branch leader in quality and service
• Specialization where appropriate
• Providing solutions for our customers
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„Future challenges“
• The climate change
• The population growth and its nutrition
• Bioenergy
• Food safety (organic, GMO)
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