Analyst Conference May 15, Dr. Wolfgang Heer (CEO), Thomas Kölbl (CFO)

Transcription

1 Analyst Conference May 15, 2012 Dr. Wolfgang Heer (CEO), Thomas Kölbl (CFO)

2 Analyst Conference May 15, 2012 Dr. Wolfgang Heer (CEO)

3 Agenda 1. Overview and strategic objectives page 4 2. Financial Highlights page Annual Financial Statement 2011/12 page Development of Segments Sugar page 36 Special Products page 41 CropEnergies page 45 Fruit page Outlook page Appendix Long-term development and key figures page 58 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 3

4 Financial Year 2011/12: Overview New revenues record of 7.0 (6.2) bn Significant increase in operating profit by 44 % to 751 mn, mainly driven by segment sugar Further reduction in net financial debt to 791 (854) mn Revenues mn 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0,000 Operating Profit mn ROCE 13.2 (9.8) % Revenues Operating Profit Proposal: Increase in dividend from 55 to 70 eurocent/share Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 4

5 Segment Sugar About 15% of European sugar demand has to be covered by imports Sugar world market price temporarily above European price level EU-Commission takes action to secure supply within EU Price adjustment for industrial and retail customers Segmental revenues and earnings take benefit of higher price level: Revenues: 3.7 (3.3) bn Operating Profit: 511 (285) mn Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 5

6 Segment Sugar: Record Campaign 2011/12 Campaign start September 6, 2011 in Belgium; processing in Silesia until Feburary 5, 2012 Campaign length ( ): 123 (103) days 29 sugar factories, 3 refineries Beet processing: 31.3 (26.1) mn t Sugar production (incl. refining): 5.4 (4.2) mn t Close meshed logistic network throughout the EU enables reliable and flexible delivery Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 6

7 Segment Sugar: ED&F Man Transaction: Purchase of 25 % - 1 share (Kapitalerhöhung) EU-merger control procedure > 3,400 employees in 60 countries Private, employee owned company Revenues 2010/11: 10 bn USD Operations: Sugar: 8.8 mn t trading volume as well as participations in production and refining capacities Marketing of coffee and molasses Trading in biofuels, edible oils as well as shipping and financial services Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 7

8 Segment Sugar: EU sugar policy European sugar policy beyond 2015 under discussion Necessity of adequate EU self-supply Requirement: Retention of sustainable beet and sugar production in the EU Continuation of current political sugar instruments until 2020 Ongoing negotiations between EU agricultural council, Commission and EU parliament No result expected till mid of 2013 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 8

9 Segment Special Products: Division BENEO Production and marketing of food ingredients with nutritional physiological and technological advantages as well as ingredients for pet nutrition Successful claim of market position EFSA confirms health claims for Isomalt and Palatinose TM Prebiotic reward for Inulin und Oligofructose no longer valid Ongoing strong demand for rice starches Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 9

10 Segment Special Products: Division Freiberger International producer of deep frozen and chilled pizza, pasta and snacks Business development strongly influenced by strong increase in raw material costs Extension of market position within British market through newly conceived site in Westhoughton (UK) US market addressed via distribution business in the USA expected enlargement of private label market share Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 10

11 Segment Special Products: Division PortionPack Development, packaging and marketing of portion packs, especially in the food service industry Financial Year 2011/12 influenced by high raw material costs and increased competition Successful integration of pre-year acquisition Union Edel Chocolade within PortionPack-Group Implementation of measures to optimize factory structure Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 11

12 Segment Special Products : Division Starch Bundling of starch and bioethanol activities in Austria, Hungary and Romania Higher selling prices lead to significant increase in revenues and earnings Optimziation of bioethanol production in light of planned E10 introduction in Austria in autumn 2012 Installation of wheat starch factory in Pischelsdorf as add-on to bioethanol site to enlarge starch product range Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 12

13 Segment CropEnergies (I) Production of sustainably produced bioethanol in Europe, food and animal feed as well as liquid CO 2 Production capacity: 700,000 m³ bioethanol p. a. 500,000 t food and animal feed p. a t CO 2 in food quality p.a. Significant increase in revenues to 529 (437) mn Operating profit reaches record level with 53 (46) mn Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 13

14 Segment CropEnergies (II) Marketing focus: Promotion of market introduction of E10 Developoment of Belgian bioethanol market Consolidation of Eastern European market position Establishment of US distribution business Ongoing optimization of current production technics and development of innovative concepts for bioethanol factories Exploration of alternative usage of bioethanol to exploit new markets Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 14

15 Segment Fruit World market leader in fruit preparations in diary, baking and ice cream industry Volume decrease driven by competition Raw material price increase not fully passed on Launch of two new factories in Egypt and South Africa Higher efficiency and higher ultilization targeted European market leader in fruit juice concentrates Divestiture of Chinese JV contracts Complete buyout of Xianyang factory in globally largest apple cultivation area Significant increase in revenues despite decrease in volume Foundation of JV with Ybbstaler to strengthen power in this division Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 15

16 Strategic Positioning The four segments of Südzucker Group build a solid and stable fundament Quick and flexible reaction to changing environment Alignment to traditional values: Sugar Special Products Crop Energies Fruit Reliability Consistency Südzucker-Group Face challenges with flexibility Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 16

17 Analyst Conference May 15, 2012 Thomas Kölbl (CFO)

18 Agenda 1. Overview and strategic objectives page 4 2. Financial Highlights page Annual Financial Statement 2011/12 page Development of Segments Sugar page 36 Special Products page 41 CropEnergies page 45 Fruit page Outlook page Appendix Long-term development and key figures page 58 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 18

19 Targets achieved again 2010/ /12 Revenues 6.2 bn 7.0 bn Operating Profit 521 mn 751 mn Net profit 346 mn 515 mn Earnings per share Dividend per share * * Proposal Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 19

20 Growth driver sugar segment 2010/ /12 Sugar 285 mn 511 mn Operating Profit Special Products CropEnergies Fruit 144 mn 46 mn 46 mn 149 mn 53 mn 38 mn Group 521 mn 751 mn Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 20

21 Cash flow strength widens financial headroom 2010/ /12 Investments* 245 mn 276 mn Cash flow 606 mn 823 mn Net Financial Debt 854 mn 791 mn Liquidity ~2.2 bn ~2.2 bn *excl. investments in financial assets Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 21

22 Group Key Figures further improved (mn ) 2011/ / / /09 Revenues EBITDA EBITDA-Margin 14,5% 12,6% 11,3% 8,3% Operating profit Operating Margin 10,7% 8,5% 7,0% 4,4% Restructuring and special items Income from operations (EBIT) Cash flow Net Financial Debt Equity Ratio 47,9% 50,8% 46,5% 41,9% Investments Capital Employed RoCE 13,2% 9,8% 7,5% 5,2% Earnings per share ( ) 1,99 1,33 1,06 0,86 Cashflow per share ( ) 4,35 3,20 2,92 2,66 Dividend per share ( ) * 0,70 0,55 0,45 0,40 * Proposal Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 22

23 Agenda 1. Overview and strategic objectives page 4 2. Financial Highlights page Annual Financial Statement 2011/12 page Development of Segments Sugar page 36 Special Products page 41 CropEnergies page 45 Fruit page Outlook page Appendix Long-term development and key figures page 58 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 23

24 Dynamic revenue development (mn ) +831 mn (+14%) +449 (+14%) +231 (+15%) Special Products +92 (+21%) Crop Energies +59 (+7%) Fruit 6, Sugar , / / Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 24

25 Overproportionate operating profit development (mn ) +230 mn (+44%) +5 (+4%) +7 (+16%) -8 (-18%) Special Products Crop Energies Fruit (+79%) 600 Sugar / / Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 25

26 Earnings before income taxes (mn ) 2011/ /11 Operating profit Restructuring & special items Income from operations (EBIT) Income from companies consolidated at equity Financial result Earnings before income taxes Financial result: Increase in interest expenses was mainly due to an increase in gross financial debt following the placement of the 400 mn bond 2011/18 in March 2011, the purpose of which was an early refinancing of the 500 mn bond 2002/12 maturing in February Other financial expense went from -1 mn to -19 mn. This decline was primarily due to lower market values of interest-rate derivatives and the termination of interest-rate swaps due to the early repayment of the variable portion of the promissory note. Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 26

27 Earnings per share follows good operating development (mn ) 2011/ /11 Earnings before income taxes Taxes on income Consolidated net earnings thereof Südzucker AG shareholders thereof hybrid capital thereof other minority interest Earnings per share ( ) 1,99 1,33 0,66 Group tax rate again came in at 22 %. Other minority interests of 112 mn relate mainly to minority shareholders of the AGRANA Group and CropEnergies. Dividend proposal: 0.70 (0.50) /share Amount distributed: 133 (104) mn Payout ratio: 35 (41) % Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 27

28 Investments still on depreciation level (mn ) 2011/ / /12 Fixed Assets Depreciation 264 Sugar Sugar 115 Special Products Special Products 82 CropEnergies CropEnergies 31 Fruit Fruit 36 Financial Assets Sugar Special Products CropEnergies Fruit Südzucker Group Projected fixed asset investments of ~ 300 mn achieved. Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 28

29 Further reduction in Net Financial Debt (mn ) Mainly due to volume and price driven increase of inventories especially in segment sugar Maintenance capex in established capacities 1,632 1, Working Capital -286 Investments -168 Dividends 823 Cash flow NFD NFD NFD NFD Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 29

30 Solid balance sheet ratios (mn ) Total assets Equity Equity ratio 47,9% 50,8% 46,5% 41,9% Net Financial Debt (NFD) Gearing (NFD/Equity) 19,9% 23,2% 30,9% 50,5% Cash flow NFD/Cash flow 1,0x 1,4x 1,9x 3,2x Goodwill Fixed assets* Working Capital ** Capital Employed RoCE 13,2% 9,8% 7,5% 5,2% * Including intangible assets **Adjustment segment fruit: Goodwill book value redirected to participation level of parent company Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 30

31 Comfortable liquidity position (mn ) Net financial debt Cash & cash equivalents / securities Gross financial debt Long-term financial debt Short-term financial debt Bank credit lines: undrawn Syndicated loan facility (July 2012) undrawn Commercial paper program undrawn = Total liquidity reserves Successful placement of Agrana promissory note in April 2012; 110 mn, maturity 5, 7 and 10 years Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 31

32 Financing maturity profile further improved* (mn ) February EUR-Bond Hybrid mn Commercial Paper Programm (perpetual) Promissory Note Convertible Bond 600 mn Syndicated Loan * Displayed to 2019; 10-year tranche of Agrana promissory note in the amount of 7 mn due in 2022 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 32

33 Rating ratios improved Rating agency Long-term rating Short-term rating BBB * Stable outlook** A 2* *** Baa 1 Stable outlook P / / / /12 Net Financial Debt/ Cash flow 3.2x 1.9x 1.4x 1.0x * since May 2007 ** since September 30, 2010 *** since January 31, 2012 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 33

34 Targets achieved again in 2011/12 Outlook 2011/12 Reported 2011/12 Revenues ~6.8 bn 7.0 bn Operating Profit ~750 mn 751 mn Investments* ~300 mn 276 mn Net Financial Debt ~ mn ** deutliche 791 mn Ergebniserholung * excl. investments in financial assets ** original target incl. participation in ED&F Man Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 34

35 Agenda 1. Overview and strategic objectives page 4 2. Financial Highlights page Annual Financial Statement 2011/12 page Development of Segments Sugar page 36 Special Products page 41 CropEnergies page 45 Fruit page Outlook page Appendix Long-term development and key figures page 58 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 35

36 Segment Sugar: Development 2011/12 (I) (mn ) 2011/ / / /09 Revenues EBITDA EBITDA-Margin 16,8% 12,2% 10,5% 7,7% Operating profit Operating Margin 13,7% 8,7% 6,9% 4,1% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 17,1% 10,4% 7,5% 5,0% Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 36

37 Segment Sugar: Development 2011/12 (II) Revenues (mn ) Operating profit (mn ) 3,279 3, / / / /12 Increase in revenues due to world market price driven higher sales revenues for quota and non-quota sugar Volume below prior year level World market price driven increase in quota sugar sales revenues higher than raw material cost hike World market price driven increase in nonquota sugar sales revenues compensates for lower volumes Others Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 37

38 Participation in ED&F Man at a glance Key Figures 2010/11* Transaction overview Total sales 14.5 mn t Revenues 10 bn USD Profit from ordinary activities 192 mn USD Net Profit 76 mn USD Equity 683 mn USD > 3,400 employees in around 60 countries Private, employee owned company Purchase 25% - 1 share via capital increase Purchase price 255 mn USD At equity accounting Pro rata earnings contribution in 2012/13 dependent on closing date *Financial Year ended Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 38

39 Segment Sugar: Outlook 2012/13 Revenues Higher non-quota sugar volume in light of strong campaign 2011 Possibility to market non-quota sugar of campaign 2011 in EU food market again Increase in revenues Operating Profit Stable EU price environment under precondition of ongoing balanced market and high world market prices Besides stable quota sugar business increase in non-quota sugar volume in light of strong campaign 2011 Further increase in operating profit Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 39

40 Agenda 1. Overview and strategic objectives page 4 2. Financial Highlights page Annual Financial Statement 2011/12 page Development of Segments Sugar page 36 Special Products page 41 CropEnergies page 45 Fruit page Outlook page Appendix Long-term development and key figures page 58 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 40

41 Segment Special Products: Development 2011/12 (I) (mn ) 2011/ / / /09 Revenues EBITDA EBITDA-Margin 12,8% 13,8% 14,9% 12,1% Operating profit Operating Margin 8,3% 9,1% 9,8% 7,6% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,7% 10,8% 10,5% 8,4% Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 41

42 Segment Special Products: Development 2011/12 (II) Revenues (mn ) Operating profit (mn ) 1, , / / / /12 High volume level reached Revenue increase due to pass on of raw material price hike Starch (incl. AGRANA bioethanol) Significant increase in earnings due to sales revenues increase exceeding raw material cost increase High volume level Others: Limited market pass on of raw material cost increase High volume level Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 42

43 Segment Special Products: Outlook 2012/13 Revenues Division starch with slightly lower revenue contribution, all other divisions with revenue increase Moderate increase in revenues Operating Profit Confirmation of high pre-year level. Volume increase at divisions Freiberger, Beneo and PortionPack to partially compensate for realized raw material price increase. Following an exceptional strong year, division starch expected with lower earnings contribution Operating profit on prior year s level Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 43

44 Agenda 1. Overview and strategic objectives page 4 2. Financial Highlights page Annual Financial Statement 2011/12 page Development of Segments Sugar page 36 Special Products page 41 CropEnergies page 45 Fruit page Outlook page Appendix Long-term development and key figures page 58 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 44

45 Segment CropEnergies: Development 2011/12 (I) (mn ) 2011/ / / /09 Revenues EBITDA EBITDA-Margin 15,9% 17,5% 9,2% 9,0% Operating profit Operating Margin 10,0% 10,5% 3,3% 5,7% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,2% 8,7% 2,3% 8,2% Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 45

46 Segment CropEnergies: Development 2011/12 (II) Revenues (mn ) Operating profit (mn ) / / / /12 Higher ethanol sales revenues Food and animal feed revenue increase due to higher volume and sales revenues Ethanol sales revenue increase higher than significant raw material cost hike Others Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 46

47 Segment CropEnergies: Outlook 2012/13 Revenues Higher production and sales volume of bioethanol as well as food and animal feed Further increase in revenues Operating Profit Recovery of European ethanol sales revenues expected following the clearance of subsidised ethanol imports from the US Earnings to tie with prior year s record level following a weaker start into the year Operating profit of more than 50 mn expected Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 47

48 Agenda 1. Overview and strategic objectives page 4 2. Financial Highlights page Annual Financial Statement 2011/12 page Development of Segments Sugar page 36 Special Products page 41 CropEnergies page 45 Fruit page Outlook page Appendix Long-term development and key figures page 58 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 48

49 Segment Fruit: Development 2011/12 (I) (mn ) 2011/ / / /09 Revenues EBITDA EBITDA-Margin 7,9% 9,4% 8,9% 4,0% Operating profit Operating Margin 4,1% 5,4% 4,4% neg. Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 4,7% 6,7% 5,5% neg. Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 49

50 Segment Fruit: Development 2011/12 (II) Revenues (mn ) Operating profit (mn ) / /12 Despite volume decrease, higher revenues mainly due to sales revenue uplift Fruit preparations (revenue share ~ 80%) Lower volumes Higher sales revenues not able to fully compensate for higher costs Fruit juice concentrates (revenue share ~ 20%) Lower volumes 2010/ /12 Sales revenues more than compensate for higher costs Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 50

51 Joint venture Ybbstaler Agrana Juice GmbH at a glance Key data Transaction overview Production and distribution of fruit juice concentrates 14 production facilities Cumulative revenues approx. 350 mn p.a. AGRANA participated in JV with 50,01 % Fully consolidated by AGRANA Closing in Q2 of fiscal year 2012/13 expected Leading European market position Improved coverage of raw material areas with production facilities Balance between own production and merchandise Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 51

52 Segment Fruit: Outlook 2012/13 Revenues Revenue increase in division fruit preparations as well as in division fruit juice concentrates Increase in revenues Operating Profit Stabilization of achieved level in fruit juice concentrates and recovery of recent weak volume trend in fruit preparations during the course of the year Slight improvement in operating profit Ybbstaler The planned merger of division fruit juice concentrates with Ybbstaler Fruit Austria GmbH will lead to additional growth; execution is expected in the second quarter 2012/13 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 52

53 Agenda 1. Overview and strategic objectives page 4 2. Financial Highlights page Annual Financial Statement 2011/12 page Development of Segments Sugar page 36 Special Products page 41 CropEnergies page 45 Fruit page Outlook page Appendix Long-term development and key figures page 58 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 53

54 Outlook 2012/13 (I) Revenues 2011/ /13e Operating Profit 2011/ /13e Sugar 3.7 bn 511 mn Special Products 1.8 bn 149 mn CropEnergies 529 mn 53 mn > 50 mn Fruit 929 mn 38 mn Group 7.0 bn > 7.0 bn 751 mn > 800 mn Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 54

55 Outlook 2012/13 (II) 2011/ /13e 212/13e EBITDA 1,015 mn Investments Fixed Assets 276 mn Investments Finan. Assets 1) 10 mn ~ 400 mn ED&F Man 255 mn USD Net Financial Debt 791 mn ~ mn 2) RoCE 13.2 % 1) Closing dependent on approval of anti-trust authorities; deadline May 22, ) incl. ED&F Man; net financial debt in Q1 significantly above previous year s level Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 55

56 Summary Umsatz Financial Year 2011/12 Targets achieved again RoCE above 13% (9,8%) Further improvement in balance sheet and financing structure Significant increase in dividend from 55 to 70 eurocent/share Financial Year 2012/13 Further increase in revenues and earnings expected Net financial debt in Q1 significantly above prior year s level Consolidation of Ybbstaler in Q2 Increase in flexibility based on 25%-participation in ED&F Man Merger division fruit juice concentrates with Ybbstaler Wheat starch plant alongside existing bioethanol plant Solid investment grade rating Comfortable liquidity position Well balanced maturity profile Strong balance sheet ratios Significant higher cash flow level Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 56

57 Agenda 1. Overview and strategic objectives page 4 2. Financial Highlights page Annual Financial Statement 2011/12 page Development of Segments Sugar page 36 Special Products page 41 CropEnergies page 45 Fruit page Outlook page Appendix Long-term development and key figures page 58 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 57

58 Long-term development (I) Pre-Reform Transition Period Post-Transition Period Actual Actual Actual Actual Actual Actual Actual Actual Actual Outlook (mn ) 2003/ / / / / / / / / /13e Revenues > EBITDA EBITDA-Margin 14,8% 15,0% 12,5% 11,8% 8,5% 8,3% 11,3% 12,6% 14,5% Operating profit > 800 Operating Margin 10,5% 10,8% 8,4% 7,3% 4,0% 4,4% 7,0% 8,5% 10,7% Income from operations (EBIT) * Earnings before income taxes (EBT) Net earnings thereof to SZ AG shareholders Market capitalization Closing price on February 28/29 15,55 16,18 22,21 15,97 14,50 13,66 17,06 19,90 21,75 Earnings per share ( ) 1,48 1,67 1,36-1,72 0,10 0,86 1,06 1,33 1,99 Dividend per share ( ) 0,50 0,55 0,55 0,55 0,40 0,40 0,45 0,55 0,70** Cash flow Investments total ~ 400*** Capital Employed RoCE 11,7% 11,3% 8,6% 8,8% 4,7% 5,2% 7,5% 9,8% 13,2% Total Assets Equity Equity Ratio 39,5% 38,1% 47,1% 42,4% 41,7% 41,9% 46,5% 50,8% 47,9% Net Financial Debt (NFD) ~ **** Gearing (NFD/Equity) 46,1% 61,1% 31,5% 24,1% 45,7% 50,5% 30,9% 23,2% 19,9% * Extraordinary impact from Goodwill impairment loss ** Proposal *** Capex (excluding investments in financial assets) **** incl. investment in ED&F Man Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 58

59 Long-term development (II) Cash flow (mn ) Revenues (bn ) >7.0 Net Financial Debt (mn ) Operating Profit (mn ) 1,672 1,508 1,632 1,100 1,177 1, NFD/CF 2.1x 3.0x 2.2x 1.5x 3.0x 3.2x 1.9x 1.4x 1.0x >800 Sugar Special Products CropEnergies Fruit Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 59

60 Return on Capital Employed (RoCE) 2011/ / /12 (mn ) RoCE RoCE Op. Profit Cap. Employed Südzucker Group 13,2% 9,8% Sugar 17,1% 10,4% Special Products 10,7% 10,8% CropEnergies 10,2% 8,7% Fruit* 4,7% 6,7% * Adjustment segment fruit: Goodwill book value redirected to participation level of parent company Sugar: Significant increase despite increase in capital employed as earnings show significant uplift Special Products: Confirmation of prior year s level with stable capital employed CropEnergies: Further improvement due to significant earnings hike with stable capital employed Fruit: Decrease due to higher capital employed and lower earnings contribution Group: Despite higher capital employed RoCE improves significantly mainly driven by segment sugar Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 60

61 Return on Capital Employed (RoCE) 2007/ / / / / /13e Sugar 2.2% 5.0% 7.5% 10.4% 17.1% Segments Special Prod. CropEnergies 8.8% 10.0% 8.4% 8.2% 10.5% 2.3% 10.8% 8.7% 10.7% 10.2% Fruit 5.6% neg. 5.5% 6.7% 4.7% RoCE 4.7% 5.2% 7.5% 9.8% 13.2% Group Operating Profit 233 mn 258 mn 403 mn 521 mn 751 mn Capital Employed 5,005 mn 4,923 mn 5,374 mn 5,314 mn 5,707 mn Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 61

62 Breakdown of Capital Employed (2011/12) Breakdown by assets Breakdown by segments 23% 14% 45% mn mn 52% 9% 32% 25% Goodwill Working Capital Fixed assets Sugar CropEnergies Special Products Fruit Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 62

63 Liquidity profile end of period (mn ) Q4 2011/12 Q3 2011/12 Q2 2011/12 Q1 2011/12 Q4 2010/11 Net financial debt Cash & cash equivalents / securities Gross financial debt Long-term financial debt Short-term financial debt Bank credit lines: undrawn Syndicated loan facility (July 2012) undrawn Commercial paper program undrawn Bank credit lines (undrawn) Cash & cash equivalents / securities Syndicated loan (undrawn) Commercial paper (undrawn) = Total liquidity reserves Successful placement of Agrana promissory note in April 2012; 110 mn, maturity 5, 7 and 10 years Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 63

64 Group balance sheet (mn ) 1,504 (20.7 %) Assets Other current assets 1,928 (23.3 %) 2,211 (30.5 %) Liabilities Current liabilities 2,515 (30.3 %) 1,709 (23.5 %) Inventories 2,324 (28.0 %) 1,362 (18.8 %) Non-current liabilities 1,805 (21.8 %) 4,046 (55.7 %) Non-current assets 4,037 (48.7 %) 3,687 (50.8 %) Equity 3,969 (47.9 %) Total 7,260 8,289 Total 7,260 8,289 Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 64

65 Group balance sheet (mn ) (mn ) Intangible assets ,4% ,4% Fixed assets ,8% ,2% Shares in companies consolidated at equity 12 0,1% 11 0,2% Other investments and loans 34 0,4% 32 0,4% Securities 105 1,3% 105 1,5% Receivables and other assets 9 0,1% 29 0,4% Deferred tax assets 131 1,6% 125 1,7% Non-current assets ,7% ,7% Inventories ,0% ,5% Trade receivables and other assets ,7% ,9% Current tax receivables 16 0,2% 24 0,3% Securities 108 1,3% 151 2,1% Cash and cash equivalents 502 6,1% 250 3,4% Current assets ,3% ,3% Equity attributable to shareholders of SZ AG ,6% ,2% Hybrid capital 684 8,3% 684 9,4% Other minority interest 669 8,1% 591 8,1% Shareholder's equity ,9% ,8% Provisions for pensions and similar obligations 546 6,6% 477 6,6% Other provisions 174 2,1% 168 2,3% Non-current financial liabilities ,2% 548 7,5% Other liabilities 13 0,2% 14 0,2% Deferred tax liabilities 141 1,7% 155 2,1% Non-current liabilities ,8% ,8% Other provisions 184 2,2% 188 2,6% Current financial liabilities 574 6,9% ,2% Trade payables and other liabilities ,2% ,2% Current tax liabilities 85 1,0% 32 0,4% Current liabilities ,3% ,5% Total assets ,0% ,0% Total liabilities and shareholders' equity ,0% ,0% Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 65

66 Financial calender Q1 1 st quarter report 2012/13 July 12, 2012 Annual general meeting for fiscal 2011/12 July 19, 2012 Q2 2 nd quarter report 2012/13 October 11, 2012 Q3 3 rd quarter report 2012/13 January 10, 2013 Press and analysts conference for 2012/13 May 16, 2013 Q1 1 st quarter report 2013/14 July 11, 2013 Annual general meeting for fiscal 2012/13 August 1, 2013 Contact Head of Investor Relations Nikolai Baltruschat Tel.: +49 (621) investor.relations@suedzucker.de Disclaimer This presentation contains forward looking statements based on assumptions and estimates made by the executive board of Südzucker AG. Although the executive board may be convinced that these assumptions and estimates are reasonable the future actual developments and future actual results may vary considerably from the assumptions and estimates due to many external and internal factors. For example, matters to be mentioned in this connection include negotiations relating to the world trade agreement (WTA), changes to the overall economic situation, changes to EU sugar policies, consumer behavior and state food and energy policies. Südzucker AG assumes no responsibility and accepts no liability for future developments and future actual results achieved being the same as the assumptions and estimates included in this presentation. This presentation includes percentage and number rounding. Südzucker Analyst Conference May 15, 2012, Dr. Wolfgang Heer / Thomas Kölbl, page 66