1. finance
2. personal finance
3. financial planning

Investor Roadshow
Lugano, 4 November 2014
Nikolai Baltruschat (Head of Investor Relations)
Südzucker Group, page 1
FINANCIAL TRANSPARENCY
Disclaimer
This presentation contains forward looking statements. The statements are based on current assumptions and
estimates made by the executive board and information currently available to its members. The forward
looking statements are not to be viewed as guarantees of the future developments and results presented
therein. Future developments and results are in fact dependent on a variety of factors and are subject to
various risks and imponderables. They are based on assumptions that could in fact prove to be invalid. The risk
management report in the 2013/14 annual report on pages 99 to 110 presents an overview of the risks. We
assume no obligation to update the forward-looking statements made in this presentation.
This presentation includes percentage and number rounding. IFRS 11 application as of financial year 2013/14.
Written and visual value statements are standardized as follows:
± 1%
stable
Südzucker Group, page 2
/
± 1-4%
slight
/
± 4-10%
moderate
/
>/< 10%
significant
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives
page 4
2. Financing
page 11
3. Development of Segments
Sugar
page 16
Special Products
page 30
CropEnergies
page 38
Fruit
page 43
4. Financial Highlights Q1 2014/15
page 48
5. Outlook 2014/15
page 59
6. Appendix
Long-term development and key figures
page 69
Additional information
page 79
Südzucker Group, page 3
FINANCIAL TRANSPARENCY
Südzucker Group at a glance
Global operating German food
group with long-standing
corporate history:
Market Cap and Shareholder Structure*
1837: Foundation of first sugar
company
Zucker
Invest GmbH
(10%)
1926:Foundation of
Süddeutsche Zucker-AG
Revenues: 7,533 bn €
Free float
(38%)
Südzucker
~2.2 bn €
1
Südzucker
indirect via
Z&S (43%)
Operating profit: 622 € 1
SZVG** (52%)
Production facilities: ~ 100
Employees: ~18.200 1
Beneficiary of mega trends within
food, animal feed and energy area
Stock exchange listing in Germany
MDAX-member
Trading volume: ~ 1.2 mn
shares/day
1
IFRS 11 adjusted
Südzucker Group, page 4
Südzucker direct
(~7%)
Agrana
~1.0 bn €
Z&S*** (86%)
Free float
(7%)
SZVG*
(7%)
Südzucker
(69%)
Crop
Energies
~360 mn €
Free float
(24%)
* Oct. 2014
** Süddeutsche Zuckerrübenverwertungs-Genossenschaft eG
*** Z&S Zucker und Stärke Holding AG (~50% Südzucker, ~50% ZBG (ZuckerBeteiligungsgesellschaft m.b.H.))
FINANCIAL TRANSPARENCY
Group – Key Figures remain on high level
2010/11
2011/12
2012/13
2013/14*
Revenues
EBITDA
6.161
775
6.992
1.015
7.879
1.246
7.533
889
EBITDA-Margin
12,6%
14,5%
15,8%
11,8%
521
751
972
622
8,5%
10,7%
12,3%
8,3%
-8
513
8
759
-17
955
-115
554
Cash flow
Net Financial Debt
Equity Ratio
606
854
50,8%
823
791
47,9%
996
464
53,7%
697
536
53,8%
Total investments
Capital Employed
RoCE
251
5.314
9,8%
286
5.707
13,2%
521
5.950
16,3%
399
5.874
10,6%
1,33
2,92
0,55
1,99
3,20
0,70
3,08
4,88
0,90
(mn €)
Operating profit
Operating Margin
Restructuring and special items
Income from operations (EBIT)
Earnings per share (€)
Cashflow per share (€)
Dividend per share (€)
* IFRS 11 adjusted
** incl. one-off positive tax effect of 0.40 €
Südzucker Group, page 5
**
1,38
3,41
0,50
FINANCIAL TRANSPARENCY
Key Figures 2013/14*
(mn €)
Sugar
Special Prod.
CropEnergies
Fruit
Group
Revenues
EBITDA
3.901
559
1.740
156
720
69
1.172
106
7.533
889
EBITDA-Margin
14,3%
9,0%
9,5%
9,0%
11,8%
Depreciation
Operating profit
-12
438
-71
85
-34
35
-41
65
-267
622
11,2%
4,9%
4,9%
5,5%
8,3%
Operating Margin
Cash flow
Investments in fixed assets
Capital Employed
RoCE (incl. Goodwill)
RoCE (excl. Goodwill)
197
110
18
52
697
377
3.187
13,7%
18,1%
1.343
6,3%
8,0%
544
6,4%
6,4%
801
8,1%
9,2%
5.874
10,6%
13,2%
Equity Ratio
Gearing (NFD/Equity)
53,8%
11,5%
Earnings per share (€)
Dividend per share (€)
1,38
0,50
* IFRS 11 adjusted; 2013/14 RoCE (incl. Goodwill) unadjusted: Group 11.0%, sugar 13.6%, special products 8.7%, CropEnergies 6,3%, fruit 8.1%
Südzucker Group, page 6
FINANCIAL TRANSPARENCY
Group
Segments
Return on Capital Employed (RoCE)
RoCE)
2009/10
2010/11
2011/12
2012/13
2013/14*
Sugar
7.5%
10.4%
17.1%
22.4%
13.7%
Special Prod.
Prod.
10.5%
10.8%
10.7%
9.5%
6.3%
CropEnergies
2.3%
8.7%
10.2%
17.3%
6.4%
Fruit
5.5%
6.7%
4.7%
5.0%
8.1%
RoCE
7.5%
9.8%
13.2%
16.3%
10.6%
Operating
Profit
403 mn €
521 mn €
751 mn €
972 mn €
622 mn €
Capital
Employed
5,374 mn €
5,314 mn €
5,707 mn €
5,950 mn €
5,874 mn €
* IFRS 11 adjusted; 2013/14 unadjusted: Group 11.0%, sugar 13.6%, special products 8.7%, CropEnergies 6,3%, fruit 8.1%
Südzucker Group, page 7
FINANCIAL TRANSPARENCY
Leading Market Positions and clear Strategic Objectives
Segment/Division
Market Position
Strategy / Main Drivers
Sugar
#1 in Europe
Further enhancement of leading market
position in Europe; especially in deficit markets
Expedite internationalization; partnership with ED&F Man
BENEO
#1 worldwide in Isomalt
and Oligofructose
Leverage strength of core products into
product innovations
#1 in Europe in frozen
Pizza (private label)
Further internal and external growth
Freiberger
Starch
PortionPack
CropEnergies
Fruit
Preparations
Fruit Juice
Concentrates
Südzucker Group, page 8
#1 in Europe in portion
packs
One of the leading
bioethanol players in Europe
#1 worldwide
#1 in Europe
Focus on specialty starches
Market share expansion through new facilities
Development of product portfolio and regions
Full exploitation of implemented capacity build-up
Consolidation of the leading position
Integration of Ensus
Take full benefit of global increase in demand
for healthy food and upmarket products through new
facilities (e.g. USA)
Usage of integrated platform to raise synergies
in combined global sourcing and distribution
New platform with Austria Juice supports growth and
profitability
FINANCIAL TRANSPARENCY
Portfolio benefits from megatrends
mn
t
8,000
sugar consumption
worldwide
6,000
USD
211,000
8,000
171,000
6,000
per capita income
worldwide
131,000
4,000
91,000
4,000
2,000
population growth
worldwide
51,000
emerging markets
11,000
Sources: United Nations, F.O. Licht
mn
barrel / day
100
2,000
,0
Source: ERS International Macroeconomic Data Set
USD / barrel
oil consumption
120
mn t
800
100
80
80
600
60
global
animal feed production
60
40
40
20
0
Source: BP
Südzucker Group, page 9
400
20
crude oil price
0
200
Source: USDA
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives
page 4
2. Financing
page 11
3. Development of Segments
Sugar
page 16
Special Products
page 30
CropEnergies
page 38
Fruit
page 43
4. Financial Highlights Q1 2014/15
page 48
5. Outlook 2014/15
page 59
6. Appendix
Long-term development and key figures
page 69
Additional information
page 79
Südzucker Group, page 10
FINANCIAL TRANSPARENCY
Rating
Rating agency
*
since 20 June 2014
** since 27 March 2014
*** since 17 June 2014
**** since 28 November 2013
Südzucker Group, page 11
LongLong-term rating
ShortShort-term rating
BBB *
Stable Outlook **
A–2
Baa 2 ***
Stable Outlook ****
P–2
FINANCIAL TRANSPARENCY
Comfortable liquidity position
28.02.2014*
28.02.2011
28.02.2012
28.02.2013
- 854
- 791
- 464
- 536
506
715
631
648
- 1.360
- 1.506
- 1.096
- 1.183
Long- t erm financ ial debt
- 548
- 931
- 808
- 681
Short- t erm financ ial debt
- 812
- 574
- 288
- 502
1.029
1.103
958
759
478
410
427
313
600
600
600
600
600
600
600
600
0
0
450
450
0
0
440
373
600
600
600
600
600
450
600
510
2.184
2.175
2.698
2.444
(mn €)
N et financ ial debt
Cas h & Cas h equivalents /
s ec urit ies
Gros s financ ial debt
Bank c redit lines :
undrawn
Syndic ated loan f ac ility
undrawn
Syndic ated loan f ac ility Agrana
undrawn
Commerc ial paper program
undrawn
= Total liquidity reserv es
* IFRS 11 adjusted
Südzucker Group, page 12
FINANCIAL TRANSPARENCY
Financing maturity profile*
profile*
(mn €) as of August 31, 2014
400
EUR-Bond
Promissory
45**
2014
58
45
2015
2016
2017
2018
2019
Südzucker Syndicated loan 2013/2018 600 mn € (back-up facility)
Agrana Syndicated loan 2014/2019
300 mn €
Commercial Paper Programm 600 mn € (perpetual)
Hybrid Bond 700 mn € (perpetual)
5.25 % before June 2015 / since June 2015 3M-Euribor + 310 bp margin
* Displayedto 2019; 10-year tranche of Agrana promissory note in the amount of 7 mn € due in 2022
** in Q1 2014/15 redeemed
Südzucker Group, page 13
Note
FINANCIAL TRANSPARENCY
Hybrid bond 2005 / cash flow covenant
(mn €)
Revenues
Cash flow
Cash flow / Revenues
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14* 2014/15e
5.347
5.765
5.780
5.871
5.718
6.161
6.992
7.879
7.533
~ 7.000
527
554
498
504
553
606
823
996
697
> 450
9,9%
9,6%
8,6%
8,6%
9,7%
9,8%
11,8%
12,6%
9,3%
> 6,5%
* IFRS 11 adjusted
Cash flow covenant (cash flow / revenues >5 %) so far significantly exceeded
Cash flow covenant fulfillment also expected in 2014/15
Options for hybrid bond (depending on continuous financial planning):
Open market tender at any time (§ 6 (7))
First time call possibility June 2015 (§ 6 (5) & (6)); condition: Comparable instrument
replacement within 12m period before
No action: Variable coupon based on 3M-Euribor + 310 bp margin
Currently preferred option „no action“
Südzucker Group, page 14
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives
page 4
2. Financing
page 11
3. Development of Segments
Sugar
page 16
Special Products
page 30
CropEnergies
page 38
Fruit
page 43
4. Financial Highlights Q1 2014/15
page 48
5. Outlook 2014/15
page 59
6. Appendix
Long-term development and key figures
page 69
Additional information
page 79
Südzucker Group, page 15
FINANCIAL TRANSPARENCY
Segment Sugar: Key figures
(mn €)
*
2010/11
2011/12
2012/13
2013/14
Revenues
EBITDA
3.279
399
3.728
626
4.232
830
3.901
559
EBITDA-Margin
12,2%
16,8%
19,6%
14,3%
285
511
708
438
8,7%
13,7%
16,7%
11,2%
Restructuring and special
Income from operations (EBIT)
-3
282
13
524
6
714
-110
345
Investments
130
148
384
219
Fixed Assets
Financial Assets
125
5
145
3
203
181
197
22
Capital Employed
RoCE
2.748
10,4%
2.984
17,1%
3.158
22,4%
3.187
13,7%
Operating profit
Operating Margin
* IFRS 11 adjusted
Südzucker Group, page 16
FINANCIAL TRANSPARENCY
EU sugar market*
market* - supply and demand
World Market
EU Production
EU Demand
World Market
„Quota sugar“
sugar“
~16~16-17 mn t
3-4 mn t
~13 mn t
CAGR 22-3%
o/w SZ:
Mauritius ~0.4 mn t
Raw sugar imports for
raffination through SZ
~0.3 mn t
Demand**
176 mn t
Production**
Production**
181 mn t
o/w SZ
3.2 mn t
o/w SZ ~25%
up to 0.4 mn t
~2~2-3 mn t
max. ~1.4 mn t
~3~3-4 mn t
„Non„Non-quota sugar“
sugar“
Südzucker Group, page 17
*Simplified, excl. isoglucose
**F.O. Licht estimate for 2013/14, June 2014
FINANCIAL TRANSPARENCY
Segment Sugar – Market environment (I): World market
World Sugar Balance (mn t)
184.6
174.9
168.1
165.5 162.4
181.2
172.4
Sugar world market price (€/t)
175.6
550
500
White sugar
450
76.1
73.0
400
64.7
58.6
350
300
2010/11
36.1% *
Production
2011/12
38.5% *
Consumption
2012/13
42.3% *
2013/14e
43.3% *
Sep-12
Mar-13
Sep-13
Mar-14
Ending stock * Ending stock in % of consumption
World sugar market well supplied
Südzucker Group, page 18
250
Low sugar world market price
Sep-14
FINANCIAL TRANSPARENCY
Segment Sugar – Market environment (II):
(II): EU
EU quota sugar inventory (mn t)
Influence of low world market price via
imports
Still high EU quota sugar inventories through
EU commission measures (+1.2 mn t)
Tougher competition for contracts.
Decreasing shares of annual contracts, higher
share of short term contracts respectively
supply via spot market
3.0
2.5
2.2
Sept.'07
Significantly lower EU sugar pricing
Sept.'08
Sept.'09
2.1
1.6
1.6
1.0
1.1
Sept.'10
Sept.'11
Sept.'12
Sept.'13
Sept.'14e
Price reporting EU-KOM (€/t)
750
700
Increasingly more difficult market
environment
Full effect in FY 2015/16
650
600
550
500
Apr-13
Südzucker Group, page 19
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
FINANCIAL TRANSPARENCY
EU quota sugar production - sugar marketing year*
year* 2013/14
Market share**
share** EU quota sugar production
Südzucker Group
(24 %)
Südzucker quota share per country (in %)
Great Britain
Nordzucker
(15 %)
Poland
25
Germany
Tereos
(11 %)
Belgium 72
25
Czech
Slovakia
Republic 39
40
Moldova
100
20
British Sugar
(11 %)
All others
(16 %)
Royal
Cosun
(7 %)
Cristal
Union (8
%)
* Sugar marketing year: Oct. – Sep.
** Südzucker estimates
Südzucker Group, page 20
Pfeifer &
Langen (8
%)
Austria
100
Hungary
France
Portugal
BosniaBosniaHercegowina
35
Rumania
Bulgaria
Italy
Greece
Spain
Südzucker distribution entities
NonNon-EU production
FINANCIAL TRANSPARENCY
Mauritius cooperation strengthens distribution power in the EU
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
400,000 tonnes
sugar
Distribution power of Südzucker Group builds
on ~ 5.0 million tonnes sugar (consisting of
production of quota sugar, industrial sugar
and refined sugar as well as imported sugar
from Mauritius)
Südzucker Group, page 21
Mauritius
FINANCIAL TRANSPARENCY
Participation in ED&F Man offers a global footprint
Private, employee owned company, founded 1783
~ 3,400 employees in 60 countries
Revenues: 9 bn USD
Profit from ordinary activities: 299 mn USD
Operations:
Sugar only
Sugar:
Liquid Products only
Coffee only
Multiple businesses
Approx. 9 mn t trading volume with significant 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
Südzucker Group, page 22
FINANCIAL TRANSPARENCY
EU sugar and agriculturial policy road map
2006
2010
2014
2013
26 June 2013:
Decision about CAP and
EU sugar policy
2017
2020
Common Agricultural Policy (CAP)
2014 - 2020
19.03.2014: GAP
ratification in accordance
with EU-Council of
Ministers
Transition
Period into...
… new EU
sugar policy
Quota reduction
Run-time: until
30 September 2015
Südzucker Group, page 23
EU sugar policy: Extension to
30 September 2017
New market framework
1 October 2017
Extension for sugar and
isoglucose quota
No quota for sugar or isoglucose
Confirmation of overall
framework
…but EU border protection still in
place
Liberalised EU sugar market…
FINANCIAL TRANSPARENCY
Segment Sugar: Mid term Outlook (I)
EU sugar policy
New market framework
until 30 September 2017
1 October 2017
Extension sugar and isoglucose quota
Elimination of sugar and isoglucose quota
Quota sugar: Minimum beet price
No minimum beet price
Contractual duty between industry and farmer
Contractual duty between industry and farmer
Specification of “EU-Toolbox”:
Temporary options:
Market withdrawals, convertion of nonquota into quota sugar, import tender
Exports limited to about 1.4 mn t p.a.
Private storage
No export restrictions
Further measures (e.g. “security net”) require
resolution
Border Protection: unchanged
Import duty 419 €/t (white sugar) resp. 339 €/t (raw sugar) from non-preferential countries
Preferential agreements with LDC-/ACP- and Andean countries: unchanged
Südzucker Group, page 24
FINANCIAL TRANSPARENCY
Segment Sugar: Mid term Outlook (II)
EU sugar demand currently
EU sugar demand as of October 1, 2017
served by
served by
EU beet sugar
70 %
EU
EU
sugar
demand
b eet
sug ar
19 mn t
10 %
EU
sugar
demand
19 mn t
Imports
16 %
EU isoglucose
4%
Quota
Non-Quota
Max. Export Volume (WTO): about 1.4 mn t
Südzucker Group, page 25
No export restrictions
FINANCIAL TRANSPARENCY
Segment Sugar: Implications for Südzucker
Opportunities
Südzucker is in good starting position as
largest producer with focus on best growing
regions
Only limited effort needed to increase and
extend current production level (with high
entry barrier at the same time)
Utilization of current European logistic
network to optimize sugar distribution and
development of new markets
Investment program to exploit future
market potential (e.g. starch)
Strengthening and extension of
cooperations (e.g. ED&F Man, LDC/ACP
producer)
Südzucker Group, page 26
Challenges
Stronger competition, possibly also from
Isoglucose
Further EU free trade agreements with third
party countries
Raw material security in increasingly more
volatile market environment
Volatility in world market price and volume
with stronger influence on EU market
FINANCIAL TRANSPARENCY
Segment Sugar: Outlook 2014/15
Sales revenue decrease with full year effect
Revenues
Increased trend towards spot business
Significant revenue decrease (Previous year*: 3,901 mn €)
Operating
Profit
Decreasing price level in light of increasingly worsening
economic environment in EU sugar market
Burden from increase in fixed costs per tonne due to once again
shorter campaign 2013
Significant decrease to about 30-70 mn €
(Previous year*: 436 mn €)
* 2013/14 adjusted for IFRS 11 effects
Südzucker Group, page 27
FINANCIAL TRANSPARENCY
Segment Sugar: Mid term Outlook
Global demand trend of ~ 2% p.a. growth intact
(population growth, increase in per-capita income…)
Recovery of world market price
Operating Profit Perspective
Temporary EU market distortion in transition period
~ 250 mn €
Strong market position in combination with strong
foothold in best growing area in the centre of demand
Necessary efficiency improvements
Increase in production ~120 days (fixed cost
degression)
Omission of EU minimum beet price / flexible beet
price payment
~ 30 to
70 mn €
Cost savings program
Capex
Maintenance
Administration (further centralization)
No restrictions on exports anymore (partnership with
ED&F Man)
Südzucker Group, page 28
2014/15
mid term
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives
page 4
2. Financing
page 11
3. Development of Segments
Sugar
page 16
Special Products
page 30
CropEnergies
page 38
Fruit
page 43
4. Financial Highlights Q1 2014/15
page 48
5. Outlook 2014/15
page 59
6. Appendix
Long-term development and key figures
page 69
Additional information
page 79
Südzucker Group, page 29
FINANCIAL TRANSPARENCY
Segment Special Products: Key figures
(mn €)
*
2010/11
2011/12
2012/13
2013/14
Revenues
EBITDA
1.575
218
1.806
231
1.862
214
1.740
156
EBITDA-Margin
13,8%
12,8%
11,5%
9,0%
144
149
132
85
9,1%
8,3%
7,1%
4,9%
-6
138
-3
146
-4
128
3
118
68
74
91
110
Fixed Assets
Financial Assets
67
1
74
0
89
2
110
0
Capital Employed
RoCE
1.335
10,8%
1.392
10,7%
1.390
9,5%
1.343
6,3%
Operating profit
Operating Margin
items
Income from operations (EBIT)
Investments
* IFRS 11 adjusted
Südzucker Group, page 30
FINANCIAL TRANSPARENCY
Segment Special Products
Revenues (mn €)
BENEO: World market leader with
premium food ingredients like Isomalt,
Inulin, Oligofructose or rice starch
1,575
1,740
1,396
1,283
Freiberger: Private-label chilled and deep
frozen convenience food (Pizza, Pasta,
Baguettes)
1,806
1,427
2 008/09 2 009/10 2010/11 2011/12 2012/13 2013/14*
Revenue split 2013/14*
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 nonfood articles
PortionPack
8%
Freiberger
29%
Starch*
40%
1,740
mn €
BENEO
(Functional Food)
23%
* IFRS 11 adjusted
** incorporates AGRANA bioethanol and starch activities
Südzucker Group, page 31
FINANCIAL TRANSPARENCY
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)
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
product innovations Palatinose™ and galenIQ™
Sales Offices
Regional Centers
Production facility
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
Offstein
Südzucker Group, page 32
FINANCIAL TRANSPARENCY
Segment Special Products: Division Starch*
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
Commisioning of new Agrana starch factory for production of wheat starch and gluten at the
site of bioethanol plant in Pischelsdorf (June 2013). Investment of 70 mn €. Capacity for
107,000 t wheat starch, 23,500 t wheat gluten, 55,000 t wheat bran and 70,000 t of
material substitutes („B+C starch“) for bioethanol.
New modular concept with new Südzucker starch factory planned at the site of bioethanol
plant in Zeitz. Comissioning planned in 2015. Investment of 125 mn €. Capacity for up to
140,000 t wheat starch products.
Gmünd (A)
Aschach (A)
Pischelsdorf (A)
Szabadegyhaza (HU)
Tandarei (RO)
Production starch
Production bioethanol
* incorporates AGRANA bioethanol and starch activities
Südzucker Group, page 33
Pischelsdorf
FINANCIAL TRANSPARENCY
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
Westhoughton
Berlin
Osterweddingen
Muggensturm
Production facility
Südzucker Group, page 34
Oberhofen
Muggensturm
FINANCIAL TRANSPARENCY
Segment Special Products: Division PortionPack Europe
European market leader in individually packaged portions for the food and non-food sectors
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 and the advertising/promotion sectors
Telford
OudOud-Beijerland (NL)
Herentals (B)
Landgraaf (NL)
Nuremberg
Barcelona
Krakow
Prague
facility
Prague
Südzucker Group, page 35
FINANCIAL TRANSPARENCY
Segment Special Products: Outlook 2014/15
Revenues
Divisions Freiberger, Beneo and PortionPack overall performance
to be stable
Division starch with slight decrease
Slight decrease in revenues (Previous year*: 1,740 mn €)
Operating
Profit
Significant increase in operating profit supported by all
divisions
Significant increase in operating profit (Previous year*: 85 mn €)
* 2013/14 adjusted for IFRS 11 effects
Südzucker Group, page 36
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives
page 4
2. Financing
page 11
3. Development of Segments
Sugar
page 16
Special Products
page 30
CropEnergies
page 38
Fruit
page 43
4. Financial Highlights Q1 2014/15
page 48
5. Outlook 2014/15
page 59
6. Appendix
Long-term development and key figures
page 69
Additional information
page 79
Südzucker Group, page 37
FINANCIAL TRANSPARENCY
Segment CropEnergies:
CropEnergies: Key figures
2010/11
2011/12
2012/13
2013/14*
437
76
529
84
645
119
720
69
17,5%
15,9%
18,5%
9,5%
46
53
87
35
10,5%
10,0%
13,5%
4,9%
Restructuring and special
Income from operations (EBIT)
1
47
-1
52
0
87
-7
28
Investments
22
14
11
18
Fixed Assets
Financial Assets
22
0
14
0
11
0
18
0
Capital Employed
RoCE
530
8,7%
519
502
17,3%
544
6,4%
(mn €)
Revenues
EBITDA
EBITDA-Margin
Operating profit
Operating Margin
* IFRS 11 adjusted
Südzucker Group, page 38
10,2%
FINANCIAL TRANSPARENCY
Segment CropEnergies:
CropEnergies: Development 2013/14 (II)
Quotation: Platts fuel-EtOH T2 €/m3
Market development:
700
Only moderate decreasing grain prices
Decrease in fuel demand
600
EU decides that US bioethanol imports via
Norway have to face anti-dumping taxes
500
Strong ethanol price decrease since autumn
2013
Acquisition Ensus:
400
Oct-13
Dec-13
Feb-14
Boost of nominal capacity by 400,000 m3 p.a.
to ~1.2 mn m3 p.a. bioethanol and production
of food and animal feed to
~1 mn t p.a.
Capex program 60 mn €; efficiency gains and
increase in purchase and sales flexibility
Jun-14
Aug-14
Wilton
Rotterdam
Duisburg
LoonLoon-Plage
Wanze
Houston
Santiago
de Chile
Zeitz
São Paulo
Production facility
Südzucker Group, page 39
Apr-14
Tank storage
Trading
Oct-14
FINANCIAL TRANSPARENCY
EU biofuels market and policy
Amendment of “Renewable Energies
Directive” and “Fuel Quality Directive”
European council agreement in
June 2014 prepares for second
reading in EU Parliament
15,000
12,500
(in 1,000 m3)
In light of current discussions member
states do not increase blending quotas
at this point in time
EU: Market potential and market reality
Market
NAP
10,000
7,500
5,000
2,500
,0
2010 2011 2012 2013 2014 2016 2018 2020
Source: National action plans of EU Member States (2010); F.O. Licht (2014)
Politics
Germany: Adjustment towards green house gas reduction targets in 2015
Belgium: New program for biofuel usage
Great Britain: Reluctance for E10 introduction in light of ongoing EU debate
Südzucker Group, page 40
FINANCIAL TRANSPARENCY
Segment CropEnergies:
CropEnergies: Outlook 2014/15
Revenues
Increase in production and sales of bioethanol, food and animal
feed via new production site Ensus and further optimization in
production facilities
Revenue increase of 5-10 % to above 750 mn €
(Previous year*: 720 mn €)
Operating
Profit
High volatility in bioethanol and raw material pricing impede
forecast
High price sensitivity; 10 € price change per cubicmeter
bioethanol leads to about 10 mn € earnings impact
Operating profit is expected in a range of -20 to 0 mn €
(Previous year*: 36 mn €)
EBITDA in range of +20 to +40 mn €
(Previous year*: 69 mn €)
* 2013/14 adjusted for IFRS 11 effects
Südzucker Group, page 41
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives
page 4
2. Financing
page 11
3. Development of Segments
Sugar
page 16
Special Products
page 30
CropEnergies
page 38
Fruit
page 43
4. Financial Highlights Q1 2014/15
page 48
5. Outlook 2014/15
page 59
6. Appendix
Long-term development and key figures
page 69
Additional information
page 79
Südzucker Group, page 42
FINANCIAL TRANSPARENCY
Segment Fruit:
Fruit: Key figures
(mn €)
*
2010/11
2011/12
2012/13
2013/14
870
81
929
74
1.140
83
1.172
106
9,4%
7,9%
7,3%
9,0%
46
38
45
65
5,4%
4,1%
4,0%
5,5%
Restructuring and special
items
Income from operations (EBIT)
0
46
-1
37
-19
26
-1
64
Investments
31
50
35
52
Fixed Assets
Financial Assets
31
0
43
7
35
0
52
0
Capital Employed
RoCE
702
812
4,7%
900
5,0%
801
8,1%
Revenues
EBITDA
EBITDA-Margin
Operating profit
Operating Margin
* IFRS 11 adjusted
Südzucker Group, page 43
6,7%
FINANCIAL TRANSPARENCY
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
Production facility
Shared customer base with segments/divisions sugar,
BENEO and starch
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 in
Central Europe
New US facility for fruit preparations
Total investments 30 mn €
Production capacity 45,000 tonnes annually
Südzucker Group, page 44
AGRANA J&F Holding GmbH
AGRANA Fruit S.A.S.
Fruit preparations
AUSTRIA JUICE GmbH
Fruit juice concentrates
~75% of segment revenues
~25% of segment revenues
⅓ of world market
European market leader
26 facilities worldwide
14 facilities worldwide
FINANCIAL TRANSPARENCY
Division Fruit Preparations:
Preparations: Fourth production site USA
US market offers average annual growth of
about 6 % – in contrast to the flat European
market –, particularly in view of the trend
toward fruit yoghurts containing a high
proportion of fruit preparation.
Expanding market presence in North
America by constructing a fruit preparation
plant in Lysander, NY (Northeastern region
of the US). Production started
31 March 2014
New facility will serve as a response to
rising customer demand in Canada and the
Northeastern Region of the US
New production capacity of 45,000 t p.a.
Total investment amounts to around
€ 30 million
Production facility
Südzucker Group, page 45
FINANCIAL TRANSPARENCY
Segment Fruit:
Fruit: Outlook 2014/15
Revenues
Significantly lower revenues in division fruit juice concentrates
no fully compensated by higher volumes in division fruit
preparations
Revenues on prior year‘s level (Previous year: 1,172 mn €)
Operating
Profit
Stable earnings in division fruit preparations despite start-up
losses of new US plant
Slightly lower earnings in division fruit juice concentrates
Operating profit on prior year‘s level (Previous year: 65 mn €)
Südzucker Group, page 46
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives
page 4
2. Financing
page 11
3. Development of Segments
Sugar
page 16
Special Products
page 30
CropEnergies
page 38
Fruit
page 43
4. Financial Highlights Q1 2014/15
page 48
5. Outlook 2014/15
page 59
6. Appendix
Long-term development and key figures
page 69
Additional information
page 79
Südzucker Group, page 47
FINANCIAL TRANSPARENCY
Group income statement
nd
2
(mn €)
Revenues
EBITDA
EBITDA margin
Depreciation
Operating profit
Operating margin
Restructuring costs/special items
Income from companies consolidated at equity
Income from operations
Net earnings for the period attributable to
Südzucker shareholders
Earnings per share (€) (undiluted)
Cash flow
Investments in fixed assets*
Net financial debt (as of reporting date)
Average number of employees
* Including intangible assets
Südzucker Group, page 48
2014/15
1.709
102
quarter
2013/14
1.958
237
6,0%
12,1%
-51
51
-50
187
3,0%
9,6%
7
9
67
-3
15
199
26
0,13
94
102
115
0,57
204
103
st
+/- in %
-12,7
-56,8
1 half year
2014/15
2013/14
3.482
3.937
249
506
+/- in %
-11,6
-50,9
7,1%
12,9%
-102
147
-99
407
4,2%
10,3%
-37,7
-66,6
7
19
173
-1
26
432
-26,8
-60,0
-77,2
-77,2
-53,8
-1,5
75
0,37
247
168
422
18.477
247
1,21
454
166
276
18.100
-69,6
-69,4
-45,7
1,1
52,8
2,1
2,2
-72,6
2,9
-63,9
FINANCIAL TRANSPARENCY
Financial Highlights – H1 2014/15
Group revenues decline by 12 % to 3,482 (3,937) million €
Operating profit decreased 64 % to 147 (407) million €
Cash flow declined 46 % to 247 (454) million €
Earnings per share decreased to 0.37 (1.21) €
Net financial debt increased by 146 million € to 422 (276) million €
Net financial debt as % of equity increased to 9 (6) %
Equity ratio still on high level at 57 (59) %
Südzucker Group, page 49
FINANCIAL TRANSPARENCY
Segment Sugar: Development H1 2014/15
nd
2
(mn €)
Revenues
EBITDA
EBITDA margin
Depreciation
Operating profit
Operating margin
2014/15
835
38
quarter
2013/14
1.050
159
4,5%
15,2%
-15
23
-15
144
2,8%
13,8%
st
+/- in %
-20,5
-76,2
-2,0
-83,8
1 half year
2014/15
2013/14
1.699
2.085
97
333
5,7%
16,0%
-29
68
-29
304
4,0%
14,5%
+/- in %
-18,6
-70,7
-1,4
-77,5
Revenues:
Revenues decreased mainly driven by the decline in quota
sugar sales revenues. Quota sugar volumes increased. World
market prices for non-quota sugar below last year’s level drove
export prices down.
Operating profit:
Decrease primarily due to significantly lower quota sugar sales
revenues, especially in Southern and Eastern European markets.
Harvest expectations: Beet yield expected to reach 76 (67) t/ha, strongly above five
year average.
Südzucker Group, page 50
FINANCIAL TRANSPARENCY
Segment Special Products: Development H1 2014/15
nd
2
(mn €)
Revenues
EBITDA
EBITDA margin
Depreciation
Operating profit
Operating margin
2014/15
422
38
quarter
2013/14
435
31
9,1%
7,2%
-18
20
-18
13
4,7%
3,0%
st
+/- in %
-3,2
22,7
0,0
55,0
1 half year
2014/15
2013/14
855
883
82
70
9,5%
7,9%
-37
45
-36
34
5,2%
3,9%
+/- in %
-3,1
16,3
3,1
30,0
Revenues:
Slightly down from last year mainly due to lower sales
revenues.
Operating profit:
Despite lower sales revenues, increase thanks to lower costs
and stable volume development.
Investments to support future development:
Biomass boiler at the site in Pemuco, Chile, to improve energy use
Construction of wheat starch factory at the site in Zeitz, Germany
Südzucker Group, page 51
FINANCIAL TRANSPARENCY
Segment CropEnergies:
CropEnergies: Development H1 2014/15
nd
2
(mn €)
Revenues
EBITDA
EBITDA margin
Depreciation
Operating profit
Operating margin
2014/15
181
0
quarter
2013/14
171
19
0,0%
10,9%
-9
-9
-8
11
-
6,2%
st
+/- in %
5,9
-100,0
12,7
-
1 half year
2014/15
2013/14
372
341
14
42
3,6%
12,3%
-18
-4
-16
26
-
7,7%
+/- in %
9,1
-67,9
12,6
-
Revenues:
Increase despite significantly lower ethanol sales revenues
thanks to considerably higher bioethanol and food/feed
volumes, which were largely attributable to Ensus.
Operating profit:
Lower net raw material costs and higher volumes were not
enough to fully offset the sharp drop in ethanol sales
revenues.
Südzucker Group, page 52
FINANCIAL TRANSPARENCY
Segment Fruit:
Fruit: Development H1 2014/15
nd
2
(mn €)
Revenues
EBITDA
EBITDA margin
Depreciation
Operating profit
Operating margin
2014/15
271
26
quarter
2013/14
302
28
9,7%
9,3%
-9
17
-9
19
6,2%
6,4%
st
+/- in %
-10,2
-7,1
4,5
-12,4
1 half year
2014/15
2013/14
556
628
56
61
10,1%
9,7%
-18
38
-18
43
6,9%
6,9%
+/- in %
-11,4
-8,0
1,1
-11,8
Revenues:
Volumes unchanged in fruit preparations; however, foreign
currency effects due to a stronger euro led to decline in
revenues. Lower revenues in fruit juice concentrates due to
lower volumes as well as lower selling prices for apple juice
concentrate.
Operating profit:
Lower profit, but stable operating margin for fruit preparations
and fruit juice concentrates, which confirms that the measures
to cut material and structural costs have been successfully
implemented.
Restructuring:
Closing of fruit preparation line in Kröllendorf and focus on
production site Gleisdorf.
Südzucker Group, page 53
FINANCIAL TRANSPARENCY
Income statement (I)
nd
2
(mn €)
Rev enues
Operating profit
Restructuring costs/special items
Income from companies consolidated at equity
Inc ome from operati ons
Financial result
Earni ngs before i nc ome taxes
2014/15
1.709
51
7
9
67
-22
54
quarter
2013/14
1.958
187
-3
15
199
-29
185
st
+/- in %
- 12,7
-72,6
-37,7
- 66,6
-24,1
- 71,0
2014/15
3.482
147
7
19
173
-21
152
1 half year
2013/14
3.937
407
-1
26
432
-29
403
+/- in %
- 11,6
-63,9
-26,8
- 60,0
-27,6
- 62,2
Income from companies consolidated at equity:
Income from companies consolidated at equity were 19 (26) million €. Sugar segment’s
result of 5 (12) million € relates mainly to its share of earnings from ED&F Man, Studen
Group and a joint-venture distribution company. Special products segment's result of
14 (14) million € includes its earnings share from Hungrana Group's starch business.
Financial result:
Financial result improved to -21 (-29) million €. Average debt slightly higher than the
year prior and net interest expense of -21 (-20) million €. Other financing was 0 (-9)
million €. The year prior this item included currency exchange losses attributable to the
financing of subsidiaries in Eastern Europe, as well as South and Central America.
Südzucker Group, page 54
FINANCIAL TRANSPARENCY
Income statement (II)
nd
2
(mn €)
Earni ngs before i nc ome taxes
Taxes on income
N et earnings f or the year
of which attributable to Südzucker AG shareholders
of which attributable to hybrid capital
of which attributable to minority interests
Earni ngs per s hare (€)
st
2014/15
54
-12
42
26
7
9
quarter
2013/14
185
-41
144
115
7
22
+/- in %
- 71,0
-72,1
- 70,7
-77,2
0,0
-57,5
0,13
0,57
- 77,2
2014/15
152
-33
119
75
13
31
1 half year
2013/14
403
-91
312
247
13
52
+/- in %
- 62,2
-63,7
- 61,8
-69,6
0,0
-40,5
0,37
1,21
- 69,4
Taxes on income:
Tax rate was 22 % (23) %.
Minority interests:
The co-owners of AGRANA and CropEnergies account for most of the other minority
interests‘ share of net earnings.
Earnings per share (EPS):
Decreased to 0.37 € (1.21 €).
Südzucker Group, page 55
FINANCIAL TRANSPARENCY
Cash flow statement
nd
(mn €)
Cas h fl ow
Inc reas e (- )/ Dec reas e (+)
in worki ng c api tal
Inves tments in fixed as s ets
Sugar segment
Special products segment
CropEnergies segment
Fruit segment
Total inves tments in fi xed as s ets
Inves tments in financ i al
as s ets /ac qui s itions
Total inves tments
Inc reas es i n s takes hel d i n
s ubs idiaries
Capi tal inc reas e/dec reas e
Divi dends paid
st
2014/15
94
quarter
2013/14
204
+/- in %
- 53,8
430
490
- 12,1
237
156
52,5
52
30
9
11
102
62
28
4
9
103
-15,0
6,4
> 100
14,9
- 1,5
81
55
11
21
168
95
49
7
15
166
-15,9
13,8
62,9
39,6
1,1
0
102
0
103
- 1,0
0
168
0
166
- 100,0
1,0
0
0
0
0
- 100,0
30
0
0
0
- 100,0
- 168
- 260
- 35,3
- 172
- 260
- 34,0
2
1 half year
2014/15
2013/14
247
454
+/- in %
- 45,7
Cash flow:
Cash flow mainly tracked EBIT and came in below the previous year’s level.
Working Capital:
Cash flow from working capital resulted mainly from a reduction in inventories during the first half of the
fiscal year, during which time it was higher than liability payments to beet farmers.
Investments:
Sugar: Mainly replacement spending and investments to improve energy efficiency. Special products:
Primarily due to the construction of starch factory in Zeitz and biomass boiler at the BENEO site, Chile.
CropEnergies: Optimization of production systems. Fruit: Mainly in the fruit preparations area.
Südzucker Group, page 56
FINANCIAL TRANSPARENCY
Balance sheet
(mn €)
As s ets
Non-current assets
Current assets
Total as s ets
Liabilities and s hareholders ' equity
Shareholders' equity
Non-current liabilities
Current liabilities
Total liabilities and s hareholders ' equity
Net financial debt
Equity ratio
Net financial debt in percent of equity (gearing)
31.08.2014 31.08.2013
+/- in %
4.525
3.398
7.923
4.419
3.612
8.031
2,4
-5,9
- 1,3
4.547
1.741
1.635
7.923
422
57%
9%
4.768
1.741
1.522
8.031
276
59%
6%
-4,6
0,0
7,5
- 1,3
52,8
Current assets:
assets:
Decline of 214 million €. Main reason is the price and volume-driven reduction in inventories,
especially in the sugar segment. In addition, trade receivables were lower due to weaker prices.
Net financial debt:
debt:
Net financial debt rose 146 million € to 422 (276) million €. The ratio of net financial debt to
equity was 9 (6) %.
Südzucker Group, page 57
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives
page 4
2. Financing
page 11
3. Development of Segments
Sugar
page 16
Special Products
page 30
CropEnergies
page 38
Fruit
page 43
4. Financial Highlights Q1 2014/15
page 48
5. Outlook 2014/15
page 59
6. Appendix
Long-term development and key figures
page 69
Additional information
page 79
Südzucker Group, page 58
FINANCIAL TRANSPARENCY
Bridge (I) – Income statement
figures
adjusted
mn €
Revenues
accounting
changes due
to IFRS 11
2013/14
Affected joint ventures
figures
presented
2013/14
7.533
-202
7.735
889
-44
933
-267
8
-275
622
-36
658
-116
0
-116
48
48
---
554
12
543
Income from companies consolidated at
equity
---
-20
20
Financial result
-60
1
-61
Earnings before income taxes
494
-8
502
-105
8
-112
390
0
390
EBITDA
Depreciation
Operating profit
Result from restructuring and special items
Income from companies consolidated at
equity
Income from operations
Taxes on income
Net earnings
Südzucker Group, page 59
Studen
(Segment sugar)
Hungrana
(Segment special
products)
CT Biocarbonic
(Segment CropEnergies)
At-equity instead of
pro-rata consolidation
since 01.03.2014
FINANCIAL TRANSPARENCY
Bridge IFRS (II) – Segment data
figures
adjusted
Group
Revenues
Operating profit
7.533
622
-202
-36
7.735
658
Sugar
Revenues
Operating profit
3.901
436
-60
0
3.961
436
Special P.
2013/14
Revenues
Operating profit
1.740
85
-142
-37
1.882
122
CropEn.
2013/14
figures
presented
Revenues
Operating profit
720
36
0
1
720
35
Fruit
mn €
accounting
changes due
to IFRS 11
Revenues
Operating profit
1.172
65
0
0
1.172
65
Südzucker Group, page 60
FINANCIAL TRANSPARENCY
Outlook 2014/15 (I)
Revenues
2013/14*
2014/15e
Operating Profit
2013/14*
2014/15e
~30 to
70 mn €
Sugar
3.9 bn €
438 mn €
Special
Products
1.7 bn €
85 mn €
CropEnergies
720 mn €
Fruit
1.2 bn €
65 mn €
Group
7.5 bn €
~ 7.0 bn € 622 mn €
* IFRS 11 adjusted
Südzucker Group, page 61
>750 mn €
35 mn €
-20 to
0 mn €
~ 200 mn €
FINANCIAL TRANSPARENCY
Outlook 2014/15 (II)
2013/14*
212/13e
2014/15e
EBITDA
889 mn €
~ 500 mn €
Investments
Fixed Assets
377 mn €
~ 450-500 mn €
22 mn €
-
Investments
Finan.
Finan. Assets
StepStep-up
subsidiaries
RoCE
* IFRS 11 adjusted, RoCE unadjusted 11.0%
** Purchase Agrana bioethanol minorities
Südzucker Group, page 62
193 mn €
10.6 %
~ 30 mn € **
FINANCIAL TRANSPARENCY
Outlook 2014/15 (III)
2013/14*
212/13e
2014/15e
Net Financial
Debt
536 mn €
~ 650-750 mn €
Cash flow
697 mn €
>450 mn €
9.3 %
>6.5 %
Cash flow /
Revenues
Equity ratio
* IFRS 11 adjusted
Südzucker Group, page 63
53.8 %
~ 53 %
FINANCIAL TRANSPARENCY
Summary (I): Financial year 2014/15
Burden mainly from temporary difficult market environment in sugar and
ethanol markets lead to significant operating profit decrease on group level
Due to sugar segment development, group operating profit target of
~ 200 million € more ambitious
Peak in capex level secures future development
New starch and neutral alcohol plants to enlarge Zeitz site
Biomass boiler, Chile
Launch of fourth fruit preparations plant to enforce market presence in
USA
Ongoing very solid balance sheet figures
Comfortable liquidity position
Südzucker Group, page 64
FINANCIAL TRANSPARENCY
Summary (II): Midterm Outlook
Financial year 2015/16 is going to be another difficult year for the sugar
business, but segments special products, CropEnergies and fruit to show
earnings improvements
We stick to our midterm guidance
Group operating profit: ~ 550 million €
o/w sugar ~ 250 million €
Group EBITDA: ~ 850 million €
Capex to match depreciation level
Südzucker Group, page 65
FINANCIAL TRANSPARENCY
Mid term Outlook (I)
(I) – Group Operating Profit
Fruit
Crop
Energies
Special
Products
Sugar
~ 200
mn €
2014/15
Launch USA
Volume growth parallel
to market growth
~ 550
mn €
Ensus: Utilization and
efficiency gains
Normalisation ethanol pricing
Utilization Pischelsdorf
Launch Zeitz
Biomass boiler Chile
Recovery wm price
Market equilibrium
Cost savings
Mid term
Megatrends intact (population growth, increase in per-capita income ...)
Südzucker Group, page 66
FINANCIAL TRANSPARENCY
Mid term Outlook (II) – Group EBITDA and Capex
~ 450 – 500
mn €
~ 850
mn €
Room for
manoeuvre
Growth
~ 500
mn €
MainMaintenance
~250
mn €
MainMaintenance
Capex
EBITDA
2014/15
Südzucker Group, page 67
Capex
EBITDA
mid term
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives
page 4
2. Financing
page 11
3. Development of Segments
Sugar
page 16
Special Products
page 30
CropEnergies
page 38
Fruit
page 43
4. Financial Highlights Q1 2014/15
page 48
5. Outlook 2014/15
page 59
6. Appendix
Long-term development and key figures
page 69
Additional information
page 79
Südzucker Group, page 68
FINANCIAL TRANSPARENCY
LongLong-term development (I)
Pre-Reform
Transition Period
Post-Transition Period
Actual
2004/05
Actual
2005/06
Actual
2006/07
Actual
2007/08
Actual
2008/09
Actual
2009/10
Actual
2010/11
Actual
2011/12
Actual
2012/13
4.827
724
5.347
669
5.765
682
5.780
489
5.871
489
5.718
645
6.161
775
6.992
1.015
7.879
1.246
7.533
889
EBITDA-Margin
15,0%
12,5%
11,8%
8,5%
8,3%
11,3%
12,6%
14,5%
15,8%
11,8%
Operating profit
523
450
419
233
258
403
521
751
972
622
10,8%
8,4%
7,3%
4,0%
4,4%
7,0%
8,5%
10,7%
12,3%
8,3%
491
457
358
297
397
328
305
242
-129**
-227
-246
-326
189
120
100
19
345
232
183
162
392
348
276
200
513
443
346
252
759
660
515
377
955
866
734
592
554
494
390
282
Market capitalization
Closing price on February 28/29
Earnings per share (€)
Dividend per share (€)
2.828
16,18
1,67
0,55
4.206
22,21
1,36
0,55
3.024
15,97
-1,72
0,55
2.746
14,50
0,10
0,40
2.587
13,66
0,86
0,40
3.230
17,06
1,06
0,45
3.768
19,90
1,33
0,55
4.117
21,75
1,99
0,70
6.850
33,55
3,08
0,90
4.114
20,15
1,38
0,50
Cash flow
Investments total
550
1.090
527
642
554
599
498
550
504
424
553
233
606
251
823
286
996
521
697
399
Capital Employed
RoCE
4.646
11,3%
5.221
8,6%
4.767
8,8%
5.005
4,7%
4.923
5,2%
5.374
7,5%
5.314
9,8%
5.707
13,2%
5.950
16,3%
5.874
10,6%
Total Assets
Equity
Equity Ratio
Net Financial Debt (NFD)
Gearing (NFD/Equity)
7.195
2.738
38,1%
1.672
61,1%
7.926
3.733
47,1%
1.177
31,5%
7.932
3.362
42,4%
811
24,1%
7.917
3.299
41,7%
1.508
45,7%
7.709
3.230
41,9%
1.632
50,5%
7.398
3.443
46,5%
1.065
30,9%
7.260
3.687
50,8%
854
23,2%
8.289
3.969
47,9%
791
19,9%
8.806
4.731
53,7%
464
9,8%
8.665
4.663
53,8%
536
11,5%
(mn €)
Revenues
EBITDA
Operating Margin
Income from operations (EBIT)
Earnings before income taxes (EBT)
Net earnings
thereof to SZ AG shareholders
* IFRS 11 adjusted
** Extraordinary impact from Goodwill impairment loss.
*** Capex (excluding investments in financial assets).
Südzucker Group, page 69
Actual
2013/14*
Outlook
2014/15e
~ 7,000
~ 500
~ 200
> 450 ***
~ 450 - 500
~ 53%
~ 650 - 750
FINANCIAL TRANSPARENCY
LongLong-term development (II)
Cash flow (mn €)
Revenues (bn € )
996
823
527
554
498
504
553
7.9
7.0
697*
606
5.8
5.3
Operating Profit (mn € )
972
751
1,065
854
811
791
464
2.2x
~7.0
6.2
1,632
1,177
NFD/CF
5.7
> 450
Net Financial Debt (mn € )
1,508
5.8
5.9
1.5x
3.0x
* IFRS 11 adjusted
Südzucker Group, page 70
3.2x
7.5*
1.9x
1.4x
1.0x
0.5x
~650-750
536*
450
622*
521
419
403
233
258
~200
0.8x
Sugar
Special Products
CropEnergies
Fruit
FINANCIAL TRANSPARENCY
Group
Segments
Return on Capital Employed (RoCE)
RoCE)
2009/10
2010/11
2011/12
2012/13
2013/14*
Sugar
7.5%
10.4%
17.1%
22.4%
13.7%
Special Prod.
Prod.
10.5%
10.8%
10.7%
9.5%
6.3%
CropEnergies
2.3%
8.7%
10.2%
17.3%
6.4%
Fruit
5.5%
6.7%
4.7%
5.0%
8.1%
RoCE
7.5%
9.8%
13.2%
16.3%
10.6%
Operating
Profit
403 mn €
521 mn €
751 mn €
972 mn €
622 mn €
Capital
Employed
2014/15
e
~200 mn €
5,374 mn € 5,314 mn € 5,707 mn € 5,950 mn € 5,874 mn €
* IFRS 11 adjusted; 2013/14 unadjusted: Group 11.0%, sugar 13.6%, special products 8.7%, CropEnergies 6,3%, fruit 8.1%
Südzucker Group, page 71
FINANCIAL TRANSPARENCY
Breakdown of Capital Employed (2013/14)*
Breakdown by assets
Breakdown by segments
14%
21%
9%
46%
5,874 mn €
5,874 mn €
23%
33%
Goodwill
* IFRS 11 adjusted
Südzucker Group, page 72
Working Capital
54%
Fixed assets
Sugar
Special Products
CropEnergies
Fruit
FINANCIAL TRANSPARENCY
Südzucker with strong capital market presence
Südzucker Bonds
Südzucker Share
36%
10%
7%
52%
Financial
liabilities*
liabilities*
204.2 mn
shares
38%
57%
Liabilities to banks
( mn €)
€)
Bond 2011/18
Hybrid bond
2005/15
Due date
Others
SZVG
Bonds
Coupon Nominal value
Zucker Invest GmbH
Free Float
Key figures as of 31 August 2014
29.03.2018
4,125%
400,0
Market capitalization: ~ 2.77 bn € (MDAX rank 28)
**
5,25%
700,0
Free-float market cap.: ~ 1.05 bn € (MDAX rank 43)
Cum. share-turnover (12 months): 3.7 bn € (rank 5)
* as of February 28, 2014 incl. hybrid bond
** first issuer call right by Südzucker as of 30 June 2015
Südzucker Group, page 73
∅-trading volume/day (12 months): ~1.8 mn shares
FINANCIAL TRANSPARENCY
Financing maturity profile
(as of August 31, 2014)
April 2014
(in Q1 2014/15 redeemed)
redeemed)
June 2019 +1 +1
Nov 2018 +1+1
5.90% Südzucker promissory note, 45 mn €
Syndicated loan AGRANA, 300 mn €,
Margin 90 bp, short-term borrowing facility 1-6 months
Syndicated loan, 600 mn €,
Margin 50 bp at Baa2/BBB, short-term borrowing facility 1 month < 1 year
April 2017/19/22
Agrana promissory note, 110 mn €
March 2018
4.125% Bond 2011/2018, 400 mn €
5.25% Hybrid Bond 2005/perpetual, 700 mn €
Perpetual
Perpetual
Südzucker Group, page 74
Issuer call June 30 June 2015 at the earliest. Pursuant to § 6 (5) and (6) of bond documentation
the exercise of the call right is subject to having issued, within the twelve month preceding the
redemption becoming effective, replacement capital (parity and/or junior securities and/or
shares) against issue proceeds at least equal to the amounts payable upon redemption.
Commercial Paper-Program, perpetual, 600 mn €
Drawn lines: 200 mn €
FINANCIAL TRANSPARENCY
Liquidity profile end of period*
period*
Q2 2014/15
Q1 2014/15
Q4 2013/14
Q3 2013/14
Q2 2013/14
- 422
- 670
- 536
- 63
- 276
788
729
648
988
791
- 1.209
- 1.399
- 1.183
- 1.052
- 1.067
Long- t erm financ ial debt
- 671
- 674
- 681
- 682
- 748
Short- t erm financ ial debt
- 538
- 725
- 502
- 369
- 319
692
735
759
805
837
(mn €)
N et financ ial debt
Cas h & Cas h equivalents / s ec urities
Gros s financ ial debt
Bank c redit lines
undrawn
Syndic ated loan
undrawn
Syndic ated loan Agrana
undrawn
Commerc ial paper program
undrawn
Bank c redit lines (undrawn)
+
+
+
=
Cas h & cash equivalents / securities
Syndic ated loan (undrawn)
Commercial paper (undrawn)
Total liquidity reserv es
* IFRS 11 adjusted
Südzucker Group, page 75
268
293
313
369
391
600
600
600
600
600
600
600
600
600
600
450
450
450
450
450
387
333
373
391
389
600
600
600
600
600
400
278
510
600
600
268
788
987
400
293
729
933
278
314
648
973
510
370
988
991
600
391
791
989
600
2.443
2.232
2.444
2.949
2.772
FINANCIAL TRANSPARENCY
Group balance sheet
(mn€
mn €)
Assets
28.02.2014 *
28.02.2013
1,924
(21.8 % )
2,568
Other current
assets
Inventories
(29.2 % )
4,314
(49.0 % )
8,806
* IFRS 11 adjusted
Südzucker Group, page 76
Liabilities
Non-current
assets
Total
28.02.2014 *
28.02.2013
1,897
2,292
(21.9 %)
(26.0 % )
2,360
1,783
(27.2 %)
(20.3 % )
4,408
4,731
(50.9 %)
(53.7 % )
8,665
8,806
Current liabilities
2,384
(27.5 % )
Non-current
liabilities
Equity
Total
1,618
(18.7 % )
4,663
(53.8 % )
8,665
FINANCIAL TRANSPARENCY
Group balance sheet
(mn €)
28.02.2014*
28.02.2013
Intangible assets
1.189
Fixed assets
2.656
Shares in companies consolidated at equity
285
Other investments and loans
24
Securities
105
Receivables and other assets
28
Deferred tax assets
123
Non-current assets
4.408
13,7%
30,7%
3,3%
0,3%
1,2%
0,3%
1,4%
50,9%
1.189
2.633
190
30
106
44
122
4.314
13,5%
29,9%
2,2%
0,3%
1,2%
0,5%
1,4%
49,0%
Inventories
Trade receivables and other assets
Current tax receivables
Securities
Cash and cash equivalents
Current assets
2.360
1.290
64
41
502
4.256
27,2%
14,9%
0,7%
0,5%
5,8%
49,1%
2.568
1.307
91
42
484
4.492
29,2%
14,8%
1,0%
0,5%
5,5%
51,0%
Total assets
8.665 100,0%
* IFRS 11 adjusted
Südzucker Group, page 77
8.806 100,0%
(mn €)
28.02.2014 *
28.02.2013
Equity attributable to shareholders of SZ AG 3.305
Hybrid capital
684
Other minority interest
674
Shareholder's equity
4.663
38,1%
7,9%
7,8%
53,4%
3.264
684
783
4.731
37,1%
7,8%
8,9%
53,7%
Provisions for pensions and similar obligations 658
Other provisions
82
Non-current financial liabilities
681
Other liabilities
18
Tax liabilities
75
Deferred tax liabilities
104
Non-current liabilities
1.618
7,6%
0,9%
7,9%
0,2%
0,9%
1,2%
18,7%
688
87
808
16
94
89
1.783
7,8%
1,0%
9,2%
0,2%
1,1%
1,0%
20,2%
Other provisions
Current financial liabilities
Trade payables and other liabilities
Current tax liabilities
Current liabilities
2,2%
5,8%
18,6%
1,0%
27,5%
189
287
1.730
87
2.292
2,1%
3,3%
19,6%
1,0%
26,0%
190
502
1.610
83
2.384
Total liabilities and shareholders' equity 8.665 100,0%
8.806 100,0%
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives
page 4
2. Financing
page 11
3. Development of Segments
Sugar
page 16
Special Products
page 30
CropEnergies
page 38
Fruit
page 43
4. Financial Highlights Q1 2014/15
page 48
5. Outlook 2014/15
page 59
6. Appendix
Long-term development and key figures
page 69
Additional information
page 79
Südzucker Group, page 78
FINANCIAL TRANSPARENCY
Revenue by region 2013/14*
Germany
(26 %)
Rest of world
(16 %)
7,735 mn €
EU 13
(14 %)
* IFRS 11 adjusted
Südzucker Group, page 79
EU 15
(44 %)
FINANCIAL TRANSPARENCY
Segment Sugar: Campaign SMY 2013/14
Beet growers 42,100 (42,600)
Beet acreage: 396,000 (422,000) ha
Sugar factories (incl. refineries): 32 (32)
Beet processing: 27.2 (28.7) mn tons
Sugar production: 4.7 (4.9) mn tons
thereof from beets: 4.3 (4.5) mn tons
thereof raw sugar raffination: 0.5 (0.4) mn tons
Südzucker Group, page 80
FINANCIAL TRANSPARENCY
Südzucker well positioned in „Beet Belt“
Poland
Germany
Belgium
Czech Republic
Slovakia
France
Austria
Hungary
Südzucker Group, page 81
Moldova
Romania
FINANCIAL TRANSPARENCY
700
600
600
500
500
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)
Südzucker Group, page 82
Feb-14
Sep-14
Jul-14
May-14
Mar-14
Jan-14
Nov-13
Sep-13
100
Jul-13
100
May-13
200
Mar-13
200
Feb-13
300
Feb-12
300
400
Feb-11
400
Feb-10
Quotation for sugar in € / ton
700
Jan-13
Quo tation for s ugar in € / t on
Price development for raw and white sugar (NYMEX, LIFFE, EU)
FINANCIAL TRANSPARENCY
EU: Production and consumption of bioethanol
Production
Consumption
2013e: 6.6 million m3 (+0%)
2013e: 7.9 million m3 (-3.0%)
Fuel: 4.6 million m3 (+0.9%)
Production increase e. g. in
Germany, Poland, Spain, the UK
and Hungary
Fuel: 5.5 million m3 (-4.3%)
EU-wide decrease of fuel ethanol with
the exception of the UK (+5.8%)
E10 continues to be only available in
Germany, Finland and France
2014e: 6.8 million m3 (+3.3%)
2014e: 7.8 million m3 (-1.6%)
Production of bioethanol
0.8
Production and consumption of fuel ethanol
2,000
Alcohol for traditional applications
Bioethanol for fuel application
1,500
(in 1,000 m3)
0.4
2012
2013
1,000
,500
2009
2010
2011
2012
2013e
2014e
Source: F.O.Licht
Südzucker Group, page 83
GER
FRA
GBR
ESP
SWE
POL
Consumption
Production
Consumption
Production
Consumption
Production
Consumption
Production
Consumption
Production
Consumption
Production
0.0
Consumption
,0
0.2
Production
(in million m3)
0.6
Others
Source: F.O.Licht
FINANCIAL TRANSPARENCY
Bioethanol sales in Germany in 2013
Bioethanol consumption in Germany
m3
Approx. 86% or 1.3 million
bioethanol
are directly blended to petrol
150
Blending quota in petrol sector: 4.2%
4.5%
4.0%
4.2%
4.1%
3.9%
3,8%
4,0%
5%
4%
3%
60
2%
30
1%
0
0%
EtOH in ETBE
Direct blending
EtOH in E85
blending rate
Source: BAFA
E10 sales in Germany and France
Slight increase of E10 sales
300
Germany
France
250
(in 1,000 t)
January to April 2014 further increase by
5.4% to 917,000 tonnes
4.4%
4.1%
90
January to April 2014: Increase of
consumption by 0.5% to 470,000 m3
Increase by 5.4% to 2.8 million tonnes
despite declining petrol sales
6%
120
(in 1,000 m3)
Consumption of fuel ethanol in Germany
declines by 3.4% to 1.5 million m3
180
200
150
100
50
0
Source: BAFA, SNPAA
Südzucker Group, page 84
FINANCIAL TRANSPARENCY
300
280
280
260
260
240
240
220
220
Wheat price (Future contract switching upon expiry)
Price for maize (Future contract switching upon expiry)
Südzucker Group, page 85
Feb-14
Feb-13
Sep-14
100
Jul-14
100
May-14
120
Mar-14
120
Jan-14
140
Nov-13
140
Sep-13
160
Jul-13
160
May-13
180
Mar-13
180
Feb-12
200
Feb-11
200
Feb-10
€ / ton
300
Jan-13
€ / ton
Price development wheat and maize (Euronext, LIFFE)
FINANCIAL TRANSPARENCY
Investor Relations
Financial calender
Contact
13 January 2015
Q3 – 1st to 3rd quarter report 2014/15
Nikolai Baltruschat
Head of Investor Relations
Tel.: +49 (621) 421 – 843
[email protected]
21 May 2015
Press and analysts‘ conference fiscal 2014/15
9 July 2015
Q1 – 1st quarter report 2015/16
16 July 2015
Annual general meeting for fiscal 2014/15
8 October 2015
Q2 – 1st half year report 2015/16
13 January 2016
Q3 – 1st to 3rd quarter report 2015/16
Südzucker Group, page 86
Bernhard Juretzek
Manager Investor Relations
Tel.: +49 (621) 421 – 530
[email protected]
Katrin Weber
Assistant
Tel.: +49 (621) 421 – 240
[email protected]
Südzucker AG Mannheim/Ochsenfurt
Theodor-Heuss-Anlage 12
68165 Mannheim, Germany
[email protected]