Südzucker Group European Investor Roadshow. Thomas Kölbl (CFO) June 2008

Transcription

1 Südzucker Group European Investor Roadshow Thomas Kölbl (CFO) June 2008

2 Overview 1. Overview and strategic objectives page 3 2. Financial Highlights 2007/08 page 7 3. Development of Segments page 11 Sugar page 11 Special Products page 21 Fruit page Outlook page Appendix page 35 Annual Financial Statement 2007/08 page 35 Additional information page 47 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 2

3 Südzucker Group at a glance Single global food company with headquarters and stock quotation in Germany (MDAX, MarketCap 2.7 bn **) Approx. 70 % of revenues generated outside Germany Strong presence in growing region Eastern Europe Development of new growth markets (e.g. Russia, China, Brazil) Early market entry into growing business platforms (e.g. BENEO (Functional Food), Fruit Preparations) Tremendous growth option Bioethanol triggered Clear strategy of market leadership in all business areas / segments Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 3 Group revenues 5.8 bn * PortionPack (7 %) Freiberger (30 %) Sugar (60 %) Fruit (15 %) Special Products (25 %) BENEO (22 %) Bioethanol (20 %) Starch (21 %) * FY 2007/08 ** Feb. 29 th, 2008

4 Südzucker Group: Strategic Objectives Segment/Division Market Position Strategy / Main Drivers Sugar Bioethanol BENEO Starch Freiberger #1 in Europe Objective: #1 in Europe by 2010 #1 worldwide in Isomalt and Oligofructose #1 in Europe Taking advantage of transition period within the sugar industry via further enhancement of leading market position in Europe internal efficiency gains Full exploitation of implemented capacity build-up Leverage strength of core products into product innovations External growth only via small add-ons feasible Fruit Preparations Fruit Juice Concentrates #1 worldwide #1 in Europe 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 synergies in combined global sourcing and distribution Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 4

5 Südzucker Group revenues: Past Present Future 2002/ / /10e 21% 15% 16% 79% 25% 60% 34% 50% Sugar Special Products Fruit Diversification via significant investments into segments Special Products (BENEO, Bioethanol, Starch) and Fruit Until end of 2008/09 completion of capacity upgrades Bioethanol Past investments and expansion program Bioethanol will increase revenue and earnings contributions of Special Products and Fruit to ~ 50% by 2009/10e Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 5

6 Overview 1. Overview and strategic objectives page 3 2. Financial Highlights 2007/08 page 7 3. Development of Segments page 11 Sugar page 11 Special Products page 21 Fruit page Outlook page Appendix page 35 Annual Financial Statement 2007/08 page 35 Additional information page 47 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 6

7 Financial Highlights 2007/08 Group revenues comparable to last year at 5.8 bn Decrease of group operating profit to 233 (419) mn Cashflow maintained at high level of 498 (554) mn Segment Sugar with lower operating profit of 61 (259) mn in light of structural and temporary charges within the transition period following the implementation of the sugar market reform Segment Special Products with double digit revenue increase and disproportionate increase in operating profit to 129 (115) mn Segment Fruit with increase in revenues and operating profit by 9% and 8% respectively on adjusted basis Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 7

8 Key figures Südzucker Group (in mn ) 2007/ /07 Δ Revenues ,3% EBITDA ,3% EBITDA-Margin 8,5% 11,8% Operating profit ,4% Operating Margin 4,0% 7,3% Restructuring and special items Goodwill impairment loss Income from operations (EBIT) Cashflow ,1% Net Financial Debt Equity Ratio 41,7% 42,4% Capital Employed ,0% RoCE 4,7% 8,8% Earnings per share ( ) 0,10-1,72 1,82 Cashflow per share ( ) 2,63 2,93-0,30-10,1% Dividend per share ( ) 0,40 0,55-0,15-27,3% 1) 1) Proposal Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 8

9 Conclusion: Annual Financial Statement 2007/08 Diversification can compensate for temporary charges within Sugar Segment on revenue, but not on profit level Segment Special Products shows significant increase in revenues and profits Segment Fruit* with continued revenue and profit growth Advanced extension of growth drivers Special Products and Fruit Cash flow maintained on high level despite high structural and temporary charges of transition period of sugar market reform * Adjusted for alignment of business year ending in prior year Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 9

10 Overview 1. Overview and strategic objectives page 3 2. Financial Highlights 2007/08 page 7 3. Development of Segments page 11 Sugar page 11 Special Products page 21 Fruit page Outlook page Appendix page 35 Annual Financial Statement 2007/08 page 35 Additional information page 47 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 10

11 Strong position within challenging EU environment Successful reform of sugar market regime In light of improved incentives EUmanufacturers renounced an additional volume of 3.4 mn t of quota Tereos (10 %) Nordzucker (9 %) British Sugar (9 %) In total, EU goal of 6 mn t quota renouncement with 5,6 mn t of renouncement by sugar marketing year 2008/09 - with already 90% achieved Südzucker via 0,87 mn t quota renouncements has participated in the reform of the reform Sector experienced successful approach to... Südzucker- Group (24 %) EU-Quota SMY 2008/09e: 13.5 mn t Danisco (7 %) Pfeifer & Langen (6 %) Ebro Puleva (4 %) Target Market Equilibrium in Europe All others (31 %) SMY: Sugar marketing year Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 11

12 further developed Südzucker exploits new market opportunities Südzucker quota share - sugar marketing year 2008/09 Systematic entry into new import markets and EU member states Rumania and Bulgaria: Production and distribution businesses in Rumania Formation of distribution and joint venture in Bulgaria Deficit markets Italy and Greece: Extension of market share via distribution co-operations Balkans region: Installation raw sugar refinery in Bosnia (capacity 150,000 t) Emphasis on industrial sugar production Belgium 20 % France 72 % Germany 40 % 100 % Austria Italy Poland 25 % Czech Republic 100 % Hungary 25 % 39 % Bosnia- Hercegowina Slovakia 35 % 56 % Greece Moldova Romania Bulgaria Moldova: market share Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 12

13 Segment Sugar: Development 2007/08 (I) (in mn ) 2007/ /07 Δ Revenues ,2% EBITDA ,4% EBITDA-Margin 6,1% 11,6% Operating profit ,7% Operating Margin 1,7% 7,3% Restructuring and special items Goodwill impairment loss Income from operations (EBIT) Investments ,9% Fixed Assets ) -160 Financial Assets Capital Employed ,8% RoCE 2,2% 9,6% 1) Including purchase of new sugar quota Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 13

14 Segment Sugar: Development 2007/08 (II) Burden from continued 4-step decline of factory margin Revenues (in mn ) Industrial sugar business not yet able to offset for omission of c-sugar business (06/07 last year of c-sugar export contingency) Missing withdrawal in October 2007: Write-down of inventory: EU-volume of sugar produced in 2007 with respective beet cost to be sold only after next decline in reference price in October 2008 Burden due to market distortion within restructuring phase despite increase in volume Balance of other positions No restructuring levy on amount of withdrawal in light of quota renouncement Continued cost reduction 2003/ / / / / / /10e 259 Operating Profit (in mn ) 2006/ /08 61 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 14

15 Segment Sugar: Quota renouncements Südzucker- Restructuring Accounting Quota aid Special items Cashflow k t mn Financial year Quota before renouncement st wave (until ) / /10 2nd wave (until ) / /10 Total Quota after renouncement Südzucker participated within European quota renouncement process with 872,000 t, i.e. 21% of company specific quota Income stream from restructuring aid is shown in result from restructuring and special items in year of effective quota renouncement in amount of respective net present value Cash inflow of 446 mn effective in FY 2009/10 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 15

16 Segment Sugar: Special items 2007/ Operating Profit Income from operations (EBIT) Restructuring aid (net present value) from 1 st wave Restructuring measures sugar Continuation of Marseille refinery Disposal of sugar quotas Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 16

17 Segment Sugar: Restructuring 2006/ /09e in light of quota renouncement of 21% (872,000 t) (in mn ) 42 Depreciation fixed assets Disposal sugar quotas (2nd wave) % 45% 305 (1st wave) ~ Dismantling/ Earlyretirementmisation Opti- Restruct.- Recultivation cost beet logistic total Writedown fixed assets Disposal sugar quotas casheffective Socialplans 33% Income from restructuring amount 88 (by 09/10) 47 (by 07/08) Sustainable cost savings p.a. (fully effective by 2009/10) Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 17

18 Segment Sugar: Outlook 2008/09 Revenues Decline in revenues due to quota renouncement of 0.87 mn t Operating Profit Reduction in temporary burden induced by market reform, e.g. Missing withdrawal in October 2007 Normalisation of European sugar market in the course of sugar marketing year 2008/09 Burden via further reduction in factory margin and increasing energy cost Continued cost reduction Significant increase in operating profit Operating profit does not include income from restructuring aid 2 nd wave of 141 mn and respective restructuring expenses in FY 2008/09 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 18

19 Segment Sugar: Main drivers 2009/10 End of restructuring phase No restructuring levy to be paid anymore Healthy supply and demand situation within European sugar market Challenge to compensate reduction of factory margin 253 /t *) to 202 /t **) via further cost reduction and efficiency gains whilst energy costs are rising Lower revenues due to reduced reference price until 2010/11, but margin recovery in light of enforced market equilibrium and further improvement in cost structure *) Sugar marketing year 2006/07: started Oct **) Sugar marketing year 2009/10: starting Oct % > 22% Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 19

20 Overview 1. Overview and strategic objectives page 3 2. Financial Highlights 2007/08 page 7 3. Development of Segments page 11 Sugar page 11 Special Products page 21 Fruit page Outlook page Appendix page 35 Annual Financial Statement 2007/08 page 35 Additional information page 47 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 20

21 Segment Special Products: Development 2007/08 (I) (in mn ) 2007/ /07 Δ Revenues ,9% EBITDA ,0% EBITDA-Margin 13,4% 13,8% Operating profit ,8% Operating Margin 8,8% 8,8% Restructuring and special items Goodwill impairment loss Income from operations (EBIT) ,9% Investments ,1% Fixed Assets Financial Assets Capital Employed ,0% RoCE 9,0% 8,4% Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 21

22 Segment Special Products: Development 2007/08 (II) Starch Successful specialization strategy Robust volume growth Increase in raw material costs not yet with full impact Partial transfer of higher raw material costs Bioethanol: Volume growth Sales increase Increase in raw material costs not yet with full impact due to early hedging Increase in use of beet syrups 1,045 1,088 Revenues (mn ) 1,139 1,308 1,463 Operating Profit (mn ) Others Starch Freiberger Bioethanol Beneo 2, / / / / / / /10 Others: Profit imrovement in all other Divisions, mainly supported by BENEO / /08 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 22

23 Bioethanol: Completion of capacity build-up in 2008/ / /10e Zeitz (260,000 m³) Zeitz (300,000 m³) Zeitz Annex (60,000 m³) Loon-Plage (100,000 m³) Wanze (300,000 m³) Pischelsdorf (240,000 m³) Hungrana ( m³) * Hungrana (80,000 m³) * CropEnergies AG AGRANA (* Joint-Venture-Share) Completion of capacity build-up in December 2008 Installation of plant in Pischelsdorf June 2008, Wanze end of CY2008 Division commands about 1 mn m³ production capacity in 2009/10 (EU market share > 10%) Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 23

24 Division Bioethanol: Comfirmation of growth path Economics 2007/08: Significant increase in revenues from 61 to 307 mn over period of 2 years Revenue development (mn ) CAGR: ~77 % ~600 Operating margin 8.7% (CropEnergies 11.8%) Midterm perspective: Revenues of 600 mn (09/10e) in light of capacity build-up Higher wheat and stable ethanol prices lead to lower operating profit in 2008/09e Future margin depended on wheat/corn prices Market potential: / / / /10e CropEnergies SZ Bioethanol Market potential Bioethanol (mn m³) (Production in mn m³) CAGR: ~72 ~72 % ~7,9 EU 5.75% mandatory blending generates market potential of ~7.9 mn m 3 until 2010 Südzucker market share > 10% confirms revenue target of 600 mn ~1,5 1,8 ~0,9 0,1 0,3 0,4 ~1,0 2005/ / / /10e SZ Bioethanol EU market for Bioethanol (fuel applications) Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 24

25 Segment Special Products: Outlook 2008/09 Revenues Continued dynamic growth of Bioethanol Division Installation of plant in Pischelsdorf/Austria June 2008 Installation of plant in Wanze/Belgium end of CY 2008 Significant increase in revenues in Starch Division (e.g. via newly installed capacities at Hungrana) Division BENEO should raise revenues Operating Profit Significant decline in operating profit in light of substantial increase in raw material prices (especially in Divisions Bioethanol and Starch) Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 25

26 Overview 1. Overview and strategic objectives page 3 2. Financial Highlights 2007/08 page 7 3. Development of Segments page 11 Sugar page 11 Special Products page 21 Fruit page Outlook page Appendix page 35 Annual Financial Statement 2007/08 page 35 Additional information page 47 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 26

27 Segment Fruit: Development 2007/08 (I) 1) (in mn ) 2007/ /07 Δ Revenues ,8% EBITDA ,9% EBITDA-Margin 9,5% 9,7% Operating profit ,6% Operating Margin 5,1% 5,0% Restructuring and special items Income from operations (EBIT) ,7% Investments ,5% Fixed Assets Financial Assets Capital Employed ,5% RoCE 5,6% 5,9% 1) 14 months Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 27

28 Segment Fruit: Development 2007/08 (II) Segment Fruit Adjusted for alignment of business year ending in prior year (14 months), revenue and profit increase Fruit preparations (share of revenue 80%) Stable volume growth Time lag in transfer of raw material price increases Fruit juice concentrates (share of revenue 20%) Successful start of 1 st joint venture in China first time full year contribution Bad European apple harvest leads to dramatic jump in raw material prices for European apple juice concentrates Considerable delay in sale of volumes from new harvest period following partial transfer of dramatic raw matieral price increases Sound development in red berry juices despite extensice raw material prices increases Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page Months Revenues (mn ) Months / / / / / / /10e Operating Profit (mn ) Fruit Fruit 46 juice preparations 44 concentrates 2006/ /08

29 Segment Fruit: Outlook 2008/09 Revenues Division Fruit Preparations: Continued stable volume growth Division Fruit Juice Concentrates: Improvement in availability of raw material leads to increase in production Segment Fruit: Continued increase in volumes and revenues Operating Profit Division Fruit Preparations: Margin improvement in light of higher capacity utilization and synergies Division Fruit Juice Concentrates: Normalisation of raw material prices, but prior year s inventory burdened by high production costs Segment Fruit: Profit on pre-year level Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 29

30 Overview 1. Overview and strategic objectives page 3 2. Financial Highlights 2007/08 page 7 3. Development of Segments page 11 Sugar page 11 Special Products page 21 Fruit page Outlook page Appendix page 35 Annual Financial Statement 2007/08 page 35 Additional information page 47 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 30

31 Südzucker Group: Outlook 2008/09 Revenues Operating Profit Capex Segment Sugar: Decline in light of quota renouncement (sugar marketing year 2008/09) Continued organic growth path within Special Products and Fruit Segments Südzucker Group: ~ bn Segment Sugar with significant profit increase Segment Special Products with significant profit decline Segment Fruit on pre-year level Südzucker Group: ~ mn Positive special-item-result of ~ Mio. driven by quota renouncement 2nd wave and not reflected in operating profit Südzucker Group: < 400 mn (fixed assets) thereof short of 50 % in Bioethanol Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 31

32 Südzucker Group: Outlook 2009/10 Revenues Special Products and Fruit Segments with continued growth (share of group revenues of approx. 50%) Südzucker Group: ~ 5.8 bn Operating Profit > 400 mn Capex < 300 mn (fixed assets) Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 32

33 Executive Summary Revenues As Segments Special Products and Fruit are expected to continue their sound growth path, we do not expect a revenue decline on group level until 2009/10 - despite lower revenue contribution from the Segment Sugar induced by necessary quota renouncements and a stepwise reduction of reference prices for quota sugar in the EU Operating Profit We continue to forecast a significant increase of profits until 2009/10 despite our adjusted assumptions in light of a considerable increase in volatility of raw material prices and energy costs Each of the three Segments will contribute to this increase in comparison to years 2007/08 and 2008/09. Though, the Sugar Segment will contribute disproportionately Significant increase in visibility after transition period (particularly beyond end of temporary impacts within sugar segment) and balanced earnings structure Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 33

34 Overview 1. Overview and strategic objectives page 3 2. Financial Highlights 2007/08 page 7 3. Development of Segments page 11 Sugar page 11 Special Products page 21 Fruit page Outlook page Appendix page 35 Annual Financial Statement 2007/08 page 35 Additional information page 47 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 34

35 Revenues by segment (in mn ) 2007/ /07 Δ Südzucker Group ,3% Sugar ,2% Special Products ,9% Fruit ,8% Sugar: Higher quota sugar sales and increase in the industrial sugar business cannot compensate for high amount of missing c-sugar exports (06/07 was last year of c-sugar export contingency) Special Products: Division Bioethanol and Starch show significant increase in revenues led by a dynamic increase in volumes and sales Fruit: Adjusted for the alignment of business year endings, revenues increased by 9% Südzucker Group: Segment Special Products with jump in revenues compensates decline in other Segments Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 35

36 Revenue growth Special Products Doubling of revenues (adjusted) between 2004/05 and 2009/10 from 1 to 2 bn Approx. 80 % of growth generated in Division Bioethanol and Starch Robust growth in Division BENEO and Freiberger Revenue Development (mn ) (adjusted for disposal of inulin fructose business) / / / / /10e 2004/ / /10e 22% 11% 27% 21% 7% 22% 5% 20% 18% 40% 20% 30% 33% 24% BENEO Bioethanol Freiberger Starch Others Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 36

37 Revenues by region 2007/08 Approx. 70% of revenues generated abroad Eastern Europe shows growth above average New markets with dynamic growth Segment Sugar: Supply of deficit markets Italy and Greece Raw sugar refinery in Bosnia to supply Balkans region Distribution partnerships in Bulgaria and Rumania Segment Fruit: Fruit preparations plant Brasil (start of operation May 2007); Extension of business with Russia Extension of apple juice concentrate business in China via a second joint venture Germany (31.0 %) EU 15 (48.0 %) Revenues 5,780 mn Rest of world (7.6 %) EU 12 (13.4 %) Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 37

38 Operating profit by segment (in mn ) 2007/ /07 Δ Südzucker Group ,4% Sugar ,7% Special Products ,8% Fruit ,6% Sugar: Phase of restructuring within European sugar market leads to structural effects, temporary high charges and market distortion Special Products: Profit uplift in all Divisions through dynamic growth in volumes; dramatic raw material hike not yet with full impact Frucht: Adjusted for the alignment of business year endings operating profit grew by 8% Südzucker Group: Strong profit performance of Special Product Segment does limit the temporary collapse of profits within the Sugar Segment Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 38

39 Earnings before income taxes (in mn ) 2007/ /07 Δ Operating income Restructuring and special items Goodwill impairment loss Income from operations (EBIT) Income from associated companies Financial expense Earnings before income taxes Result from restructuring and special items mainly influenced by quota renouncement of 615,000 t within 1 st wave Segment Sugar -20 (-109) mn : Restructuring aid (305 mn ) is almost compensated by expenses for the sugar quota disposal and closure of factories Income from associated companies mainly contains pro-rata result from liquidation of Eastern Sugar business Improvement of financial expenses due to capital gains on sold securities Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 39

40 Earnings per share (in mn ) 2007/ /07 Δ Earnings before income taxes Taxes on income Consolidated net earnings thereof Südzucker AG shareholders thereof hybrid capital thereof other minority interest Earnings per share ( ) 0,10-1,72 1,82 Taxes on income marked by German tax reform 2007 Rate of taxation for Südzucker AG declines from approx. 38% to 29% Revaluation of German deferred taxes led to a one time tax yield of 15 million Consolidated net earnings Lower tax shield on financing of payout for hybrid capital (700 mn nominal) due to reform of German corporate income tax Other minorities interests: Mainly co-owners of AGRANA Group and CropEnergies Group Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 40

41 Investments (in mn ) 2007/ /07 Δ Capex % Sugar % Special Products % Fruit % Financial Assets % Sugar Special Products Fruit Subtotal % Purchase new sugar quota Südzucker Group % Sugar: Reduction in maintenance capex; Construction of Raw sugar refinery in Bosnia to increase market penetration in Balkans region; Purchase of minority stake in Poland Special Products: According to schedule Bioethanol-Invesment-Program to install new plants in Belgium and Austria Fruit: Completion of plant in Brasil; Extension of storage capacity in China Südzucker Group: Lowering of overall investments by 8% Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 41

42 Development of net financial debt due to (in mn ) Temporary charges of transition period within the EU sugar market regime (inventory build-up Segment Sugar) High level of investments driven by extension in Division Bioethanol High raw material costs in Special Products and Fruit Segments Payments to the EU restructuring fund (500 mn ) and for the purchase of additional quota from the EU in FY 2006/07 and 2007/08 (180 mn ) Dividends Disposal of sugar quotas Other NFD NFD Cashflow -261 Inventories Working Capital Investments NFD Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 42

43 Return on Capital Employed (RoCE) 2007/ / /08 (in mn ) RoCE RoCE Op. Profit Cap. Employed Südzucker Group 4,7% 8,8% Sugar 2,2% 9,6% Special Products 9,0% 8,4% Fruit 5,6% 5,9% Sugar: Expected drop in RoCE through interaction of Decline in factory margin according to market regime Write-down of inventory in light of missing second withdrawal in sugar marketing year 2007/08 by EU temporary inventory build-up Special Products: Strong increase in profits (+13%) superposes effects from inventory build-up Fruit: RoCE-development reflects price and volume driven inventory build-up Südzucker Group: Profit development in Segment Sugar as main driver for Group-RoCE Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 43

44 Balance sheet ratios (in mn ) Total assets Equity Equity ratio 41.7% 42.4% Net Financial Debt (NFD) Gearing (NFD/Equity) 45,7% 24,1% Cashflow NFD / Cashflow 3,0x 1,5x Goodwill Property, plant, equipment Working Capital Capital Employed RoCE 4.7% 8.8% * * Adjustment Segment Fruit 06/07: Book value of Goodwill assigned to parent company on dedicated holding level Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 44

45 Balance Sheet Structure (in mn ) Intangible assets ,7% ,9% Property, plant, equipement ,1% ,5% Shares in associated companies 64 0,8% 69 0,9% Other investments and loans 115 1,5% 132 1,7% Securities 20 0,2% 28 0,4% Receivables and other assets 304 3,8% 8 0,1% Deferred tax assets 60 0,8% 30 0,4% Non-current assets ,8% ,8% Inventories ,0% ,3% Trade receivables and other assets ,2% ,3% Current tax receivables 17 0,2% 59 0,7% Securities 158 2,0% 108 1,4% Cash and cash equivalents 217 2,7% ,5% Current assets ,2% ,2% Total assets ,0% ,0% (in mn ) Equity attributable to shareholders of SZ AG ,8% ,6% Hybrid capital 684 8,6% 684 8,6% Other minority interest 575 7,3% 571 7,2% Shareholder's equity ,7% ,4% Provisions for pensions and similar obligations 402 5,1% 399 5,0% Other provisions 211 2,7% 177 2,2% Non-current financial liabilities ,6% ,1% Other liabilities 21 0,3% 21 0,3% Deferred tax liabilities 165 2,1% 249 3,1% Non-current liabilities ,7% ,8% Other provisions 182 2,3% 152 1,9% Current financial liabilities 669 8,4% 259 3,3% Trade and other payables ,7% ,3% Current tax liabilities 19 0,2% 27 0,3% Current liabilities ,7% ,8% Total liabilities and shareholders' equity ,0% ,0% Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 45

46 Overview 1. Overview and strategic objectives page 3 2. Financial Highlights 2007/08 page 7 3. Development of Segments page 11 Sugar page 11 Special Products page 21 Fruit page Outlook page Appendix page 35 Annual Financial Statement 2007/08 page 35 Additional information page 47 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 46

47 Segment Sugar: Campaign 2007/08 Beet growers: 59,200 Beet acreage: 438,500 ha Sugar factories: 41 (incl. refineries) Beet processing: 28.2 mn tons Sugar production: 4.6 mn tons thereof from beets: 4.3 mn tons thereof raw sugar raffination: 0.3 mn tons Beet acreage 2008/09 reflects quota renouncement and competition to other crops Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 47

48 FINANCIAL TRANSPARENCY Segment Sugar: Factory Located in Beet Belt Poland Germany Belgium Czech Republic Moldova Slovakia Austria France Romania Hungary White sugar yield in the EU 2006/07 t white sugar /ha Südzucker EU sugar production Ø EU-15 11,8 8,5 Ø EU-12 7,7 6,2 Ø EU-27 9,7 7,4 Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 48

49 EU sugar market regime: Development of factory margin Sugar marketing year 2005/ /07* 2007/08* 2008/09** 2009/10** Δ cum. I. Reference price, Restructuring levy, Margin Reference price (consumer level) /t S % Restructuring levy /t S Reference price (producer level) /t S % Basic beet price /t B % Beet cost /t S % Producer's margin /t S % II. Refund o/w manufacturer's share /t S - < 657 < , one-off payment for = 13% quota surrender*** 173,5 o/w farmer's share /t S - >73 >73 62, one-off payment for any quota surrender 237,5 Total /t S Total + one-off payments /t S *** 13% represents individual Südzucker Group level * Old regulation ** New regulation (decided 26th Sept 07) > 22% Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 49

50 Development of EU quota renouncements (in mn t) Sluggish quota renouncements: Temporary withdrawal of 2 mn t EU incentive scheme works: As of March, 31st mn t of quota are renounced Last possibilty for compensated voluntary quota renouncements Final, uncompensated quota cut by EU for accomplishment of EU 6 mn t target Overall target of 6 mn t already achieved to an extent of 90% in sugar marketing year 2008/09 Quota renouncement to fund (accumulated) Temporary withdrawal / / / / /11 1st and 2nd phase Sugar marketing year Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 50

51 Segment Sugar: Adaption of factory structure ,812 12,001 11,678 10,885 10,043 9, Employees * Factories ** * including reductions in the context of factory closures ** beet sugar factories and refineries Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 51

52 Segment Sugar: Cost reduction measures (in mn ) Measures Cost Savings p.a. cash non cash Total fully effective Factory closures Austria: Hohenau /08 Slovakia: Sobota /10 Germany: Groß Gerau, Regensburg Belgium: Brugelette France: Guignicourt Poland: Lubna, Chybie, Raciborz, Wroblin, Wroclaw Hungary: Petöhaza Administration / others Renegotiation beet contracts /08 Optimisation beet freights /10 Reduction administration cost Reduction maintenance expense Centralisation administration Poland Early- / Partial retirement Partial retirement program Germany Early retirement program Belgium longterm Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 52

53 Division Bioethanol: Sound political environment EU admits unlimited support of biofuels: EU mandatory blending of 5.75% until 2010, directive suggests increase to 10% in 2020 Introduction of sustainability criteria Competition for crop land: EU-Commission expects for 2020 in case of 10%-mandatory blending a net grain production surplus Long-term incfluence of Bioethanol on grain price developemnt seen as marginal Germany: Unchanged biofuel-law suggests mandatory blending of Bioethanol to increase from current level of 2% to 3.6% in 2010 EU-Commission estimate Development of grain volumes Grain 2020e in mn t Production 317 Consumption 312 thereof Bioenergy 59 Share in % 19% Imports 11 Exports 17 Source: EU Commission Südzucker s investment program is based on current EU mandatory blending scheme of 5.75% and will be completed consistently Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 53

54 Precondition for acceptance of biofuels or: Advantage for bioethanol as a fuel Convenient handling, comparable to fossil fuel Liquid; using existing tanks and station infrastructure Easy filling under atmospheric pressure with existing security systems Established vehicle technology Up to 10% (low blends) no modifications required High blends (E85): FFV modifications cheap with cost of up to 400 /car Non toxic, non hazardous, environmental friendly, sustainable CO 2 Balance CO 2 neutral photosynthesis: energy plants absorb CO 2 (emmetting oxygen); when burned, oxygen is absorbed (emmetting CO 2 ) Each litre of Bioethanol saves kg CO 2 vs. Petrol (Source: LAB) Energy Balance Net energy balance 3.2 : 1 (efficiency CEAG factory Zeitz) (Source: CropEnergies) Net energy balance 2.1 : 1 (well to wheel) Net energy balance of petrol 0.8 : 1 (Source: Worldwatch) Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 54

55 Division Bioethanol with anchor investment CropEnergies is well positioned in the European Bioethanol market has strong brands uses various European grains + sugar thick juice as raw material (multi feedstock) hedges 30 % of grain exposure with its by-product ProtiGrain mainly operates own power station and is independent from external utilities is big enough to benefit from cost degression has access to R&D for further business development has secured financing for its expansion to become the leading EU bioethanol producer in 2009/10 ProtiGrain Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 55

56 Segment Fruit: Production sites Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 56

57 Thank you for your attention Contact Head of Investor Relations Nikolai Baltruschat Phone: +49 (621) Disclaimer This presentation contains forward-looking statements that reflect managements current views with respect to future events. The forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made. Südzucker Group European Investor Roadshow June 2008 Thomas Kölbl (CFO), page 57