Nordzucker AG Interim Report Financial Year 2009/2010

Transcription

1 Nordzucker AG Interim Report Financial Year 2009/2010 1st Half-year March 1 August 31, 2009

2 Group figures and ratios Operating business H1 2009/2010 H1 2008/2009 Change absolute Revenues EUR m Total revenues EUR m Gross income EUR m EBITDA EUR m EBIT EUR m Net profit EUR m Cash flow from operating activities EUR m Investments in property, plant and equipment EUR m Investments in financial assets EUR m Balance sheet ratios as of 31/08 H1 2009/2010 H1 2008/2009 Change absolute Balance sheet total EUR m 2,107 1, Equity EUR m Equity ratio % Debt capital EUR m 1, Financial liabilities EUR m Cash and cash equivalents EUR m Net debt EUR m (Cash and cash equivalents less financial liabilities) Structure figures H1 2009/2010 H1 2008/2009 Change absolute Number of plants (total) Number of plants abroad

3 Nordzucker markets and trends Highlights of the first half-year 2009/2010 Contents Letter from the Management Board 4 Management Report 6 Financial and earnings situation 6 Revenues and earnings 6 Balance sheet and cash flow Campaign 8 New members added to the Nordzucker Management Board The increased size of the Company and the rising challenges in the market have made it necessary for Nordzucker to reorganise the Group. This included the enlargement of the Management Board. The Management Board now has five areas of responsibility. Dr Michael Noth has been Chief Financial Officer since 16 August Mats Liljestam took charge of the newly created Management Board responsibility of Sales & Marketing on 23 June As the new Chief Agricultural Officer, Dr Niels Pörksen took over the post of the retired Dr Henrik Einfeld on 1 October 2009 and became responsible for Agriculture and Raw Material Procurement. Outlook 8 Income statement 9 Cash flow statement 10 Balance sheet 11 Statement of changes in shareholders equity 13 Financial calendar 14 Campaign underway in all three regions All Nordzucker factories began to process sugar beet in the course of September. Good weather conditions lead us to expect above-average harvests, particularly in Central Europe but also in most other regions. Nordzucker Half-Year Report 2009/2010 3

4 Dear Shareholders, It has now been a good six months since the acquisition of Nordic Sugar. During this period we have been working intensively on integrating and establishing a powerful new Group structure. The new structure has been in place since 1 August. We have organised operations into three regions. The countries in which Nordic Sugar operates plants, i.e. Denmark, Sweden, Finland and Lithuania, make up the region of Northern Europe. The region of Central Europe covers the business in Germany. We also combined our Eastern European activities in the region of Eastern Europe. This encompasses the production facilities in Poland, Slovakia and Serbia, as well as a distribution facility in Hungary. Integration forges ahead In order for acquisitions and mergers to be successful, the different companies must be integrated quickly and smoothly. Nordzucker and Nordic Sugar are excellently positioned for joining forces: they have corresponding cultures, a similar tradition and an identical technological base. In the past months we have cooperated in laying the foundations for our work together. Integration is proceeding quickly, for example in the areas of Information Technology and Finance. We had put the integration process in the hands of executives in charge of operations before the campaign even began, allowing us to reach our milestones. We are also prioritising Group-wide networking: We work in international teams in order to learn from one another and synchronise processes, improving these together and making them more efficient. Focus on cost-effectiveness The market for imported sugar from developing countries has been opened up further since 1 October. At the same time the reference price for sugar was reduced again. We also need to address the expiration of the current sugar market regime in We have already prepared our Company for this. We are developing the Group sustainably on the basis of our new organisational structure. For this to be possible, it is essential to increase cost-effectiveness and thus in particular to improve competitiveness across the entire Company. Our thanks go to all our staff for their commitment, and to you, our shareholders, for the trust you place in Nordzucker, even in times of significant changes. Yours sincerely, Nordzucker AG The Management Board Hans-Gerd Birlenberg Mats Liljestam Dr Michael Noth Dr Niels Pörksen Dr Martin Wienkenhöver Nordzucker Half-Year Report 2009/2010 4

5 Nordzucker locations in Europe Headquarters Nordzucker D 1 Braunschweig Head office Nordic Sugar DK 2 Copenhagen Sugar factories D 3 Clauen 4 Nordstemmen 5 Uelzen 6 Klein Wanzleben 7 Schladen DK 8 Nakskov 9 Nyköbing S 10 Örtofta FIN 11 Säkylä LT 12 Kedainiai PL 13 Opalenica 14 Chelmza SK 15 Trencianska Tepla SRB 16 Bac 17 Vrbas 18 Pecinci 19 Kovacica D 20 Liquid sugar factory Groß Munzel 21 Liquid sugar factory Nordstemmen Refineries S 22 Arlöv FIN 23 Porkkala Sugar factories non-consolidated minority stake CZ 24 Dobrovice 25 Ceske Mezirici Other locations D 26 fuel Hübner-Medopharm DK 28 Maribo Seed HU 29 Hatvan Nordzucker Half-Year Report 2009/2010 5

6 Management Report Financial and earnings situation The half-year financial report of the Nordzucker Group as of 31 August 2009 has been prepared in accordance with the International Financial Reporting Standards (IFRS) adopted and published by the International Accounting Standards Board (IASB). Supplementary provisions of German commercial law have been taken into account. The financial statements comply fully with IFRS. They give a true and fair view of the financial and earnings situation of Nordzucker AG and its associated companies, consolidated subsidiaries and joint ventures. Nordzucker AG and the companies of Nordic Sugar have been included in the consolidated financial statements of Nordzucker with their financial reports as of 31 August Due to their varying reporting dates, all other companies have been included with their financial reports as of 30 June. No changes have been made to the accounting methods used for the preparation of the consolidated annual financial statements as of 28 February For more information please see the Notes section of the 2008/2009 Annual Report. The production of sugar is a seasonal business. The production stage, from the middle of September until the start of January, is entirely in the second half of the financial year. This should be taken into consideration when interpreting the results of the first half-year. Revenues and earnings As a result of the first-time inclusion of Nordic Sugar, which was acquired on 2 March 2009, revenues rose significantly in the first half-year compared with the same period in the previous year from EUR million to EUR million. The new subsidiaries accounted for around 43 per cent of revenues in this period. While revenues in Germany remained slightly higher for the first six months than in the previous year, revenues in Eastern Europe showed a slight corresponding fall. This was largely due to the end of sugar production in Hungary. Other operating income fell from around EUR million to EUR 15.7 million. In the previous year this item included the restructuring aid for Germany and Hungary from the quota return in the second wave. The cost of materials and services primarily comprised consumables and supplies, as well as expenses for related merchandise, and increased again as a result of the acquisition completed significantly by EUR million to EUR million. In Central and Eastern Europe the cost of materials and services was down slightly on the previous year. This was also the case for personnel expenses, which increased overall to EUR 87.0 million (previous year: EUR 48.1 million). Depreciation, amortisation and impairment rose to EUR 54.6 million due to the acquisition of Nordic Sugar, compared to EUR 35.1 million in the previous year s period. Consolidated revenues in EUR m H1 2008/2009 H1 2009/2010 EBIT consolidated in EUR m H1 2008/2009 H1 2009/2010 Nordzucker Half-Year Report 2009/2010 6

7 Management Report Other operating expenses of EUR 86.8 million include in particular the increased administrative expenses as a result of the Nordic Sugar acquisition. The Group s operating result (EBIT) was EUR 30.3 million (43.5) in the first half of the 2009/2010 financial year. It should be noted that the figure for the previous year was highly affected by the positive influence of entitlement to EU restructuring aid as part of the quota return in the second wave. The clear increase in interest expense from EUR 14.7 million to EUR 37.1 million is attributable to debt financing for the Nordic Sugar transaction. Other net financial income came from currency adjustments and resulted in earnings before taxes of EUR 13.2 million. Following the deduction of taxes, there was consolidated net income for the period of EUR 4.5 million, down from EUR 20.9 million in the previous year. Balance sheet and cash flow The cash flow from operating activities was EUR million, up from EUR million in the previous year. This positive development was primarily due to the reduction in the portfolio of finished goods and works in progress as well as a downturn in other inventories, trade receivables and other assets not attributable to investing or financing activities. EUR 26.6 million was invested in property, plant and equipment in the reporting period (34.6). A payment of EUR million (23.6) was also made for the acquisition of consolidated companies and other business units. This payment was due to the acquisition of Nordic Sugar. The cash flow from investing activities totalled EUR million (23.9). After raising and repaying bank loans, cash flow from financing activities came to EUR 1.0 million (86.2). This resulted in cash and cash equivalents of EUR million (42.0) as of 31 August The Nordzucker Group s balance sheet total was EUR 2,106.8 million (1,533.9) at the end of the quarter. The reason for this increase was the first-time inclusion of Nordic Sugar. All assets showed a clear increase as a result of this. Fixed assets rose from EUR million in the previous year to EUR billion. Intangible assets in particular rose sharply to EUR million (66.4). These financial statements include a provisional allocation of the purchasing price to assets and liabilities in accordance with IFRS 3. Equity rose slightly in comparison with the previous year s period. It amounted to EUR million, up from EUR million in the previous year s period. The equity ratio fell in particular as a result of an increase in financial liabilities to 36.2 per cent (46.2). It continues however to be clearly above our target of 30 per cent. The increase in non-current financial liabilities as a result of financing for the Nordic Sugar acquisition, together with current financial liabilities and cash and cash equivalents, led to net debt of EUR million (313.3). As much as EUR 256 million of the financing sum for the acquisition of Nordic Sugar was paid back in the second quarter. Consolidated net income in EUR m 21 H1 2008/2009 H1 2009/2010 Balance sheet structure as of August 31, 2009 consolidated figures in EUR m Non-current assets Inventories Other current assets 5 2,107 2,107 62% 19% 19% Assets 36% 44% 20% Equity & liabilities Shareholders equity Non-current liabilities Current liabilities Nordzucker Half-Year Report 2009/2010 7

8 2009 Campaign and Outlook 2009 campaign We expect an unusually good beet harvest in The sugar yields per hectare are above the previous year s figure in nearly every region and are also much higher than the average of the past five years. Particularly high yields are anticipated in Denmark, Slovakia and Germany. Total rainfall in July and August was low in comparison to the long-term average. However, rain always fell in time to prevent long-term drought damage to the beet crop, with the exception of Serbia and some regions in Germany. The dry, warm weather also resulted in sugar being highly concentrated in the beets. Only in Serbia did the beets suffer due to the ongoing dry weather. The first results from the campaign in Serbia are lower than the estimates from early summer. Outlook The first-time inclusion of Nordic Sugar in the Group is expected to increase revenues by around 40 per cent in the current 2009/2010 financial year. However, a fall in the reference price as well as quota returns will lead to a decrease in revenues in the individual companies. At the same time, the initiatives de veloped in 2009/2010 to integrate the Company with Nordic Sugar will take effect and indeed evidence of these can already be seen in earnings developments. We believe that our market strength positions us excellently in the European sugar market. In addition, our measures to increase cost-effectiveness in all areas of the Company will lead to a lasting improvement in results. For the years ahead we therefore expect earnings development to be positive. Nordzucker Half-Year Report 2009/2010 8

9 Consolidated half-year financial statements Consolidated half-year financial statements Consolidated income statement for the period from March 1 August 31, 2009, Nordzucker AG, Braunschweig 1/3/ /8/2009 1/3/ /8/2008 Change Revenues 904, , ,676 Decrease in finished goods and work in progress 465, ,549 62,197 Own work capitalised 1, Total revenues 440, , ,462 Other operating income 15, ,225-95,531 Cost of materials and services 197,165 82, ,911 Personnel expenses 87,038 48,101 38,937 Depreciation, amortisation and impairment of intangible assets and property, plant and equipment 54,649 35,107 19,542 Appreciation of intangible assets and property, plant and equipment Other operating expenses 86,791 59,876 26,915 Operating result (EBIT) 30,320 43,510-13,190 Net interest a) Interest income and similar income 5,419 5, b) Interest expenses and similar expenses 37,129 14,749 22,380-31,710-9,074-22,636 Net income/loss from investments a) Net income/loss from associated companies and joint ventures accounted for under the equity method b) Other net income from investments ,034 Other financial expenses 13, ,611 Net financial loss -17,168-9,177-7,991 Earnings before taxes 13,152 34,333-21,181 Income taxes 8,631 13,420-4,789 Consolidated net income 4,521 20,913-16,392 Minority interests 1,962 1, Consolidated net income attributable to shareholders of the parent company 2,559 19,851-17,292 Nordzucker Half-Year Report 2009/2010 9

10 Consolidated half-year financial statements Consolidated cash flow statement for the period from March 1 August 31, 2009, Nordzucker AG, Braunschweig 1/3/ /8/2009 in EUR m 1/3/ /8/2008 in EUR m Consolidated net income Net depreciation, amortisation and impairment on non-current assets Depreciation, appreciation on financial investments - - Changes in non-current provisions Other non-cash expenses Changes in finished goods and work in progress Changes in current provisions Proceeds on disposal of non-current assets NZ- Changes in inventories, trade receivables and other assets not attributable to investing or financing activities Changes in trade payables and other liabilities not attributable to investing or financing activities Cash flow from/for operating activities Proceeds on disposal of property, plant and equipment Payments for investments in property, plant and equipment Proceeds on disposal of intangible assets - - Payments for investments in intangible assets Proceeds on disposal of financial assets Payments for investments in financial assets Payments for the acquisition of consolidated companies and other business units Cash flow for investing activities Payments to shareholders (dividends) Proceeds from borrowing Loan repayments Cash flow from financing activities Changes in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents from the acquisition of consolidated companies and other business units Effect of foreign exchange rate changes Cash and cash equivalents at the end of the period Nordzucker Half-Year Report 2009/

11 Consolidated half-year financial statements Consolidated balance sheet as of August 31, 2009, Nordzucker AG, Braunschweig Assets 28/2/ /8/ /8/2008 Change Non-current assets Fixed assets Intangible assets 43, ,220 66, ,847 Property, plant and equipment 629,943 1,068, , ,862 Investment property 6,429 7,396 6, Financial investments Shares in associated companies and joint ventures accounted for under the equity method 10,299 10,231 3,950 6,281 Other financial investments 21,189 21,248 33,683-12,435 31,488 31,479 37,633-6, ,595 1, , ,991 Receivables and other assets Financial assets Other assets 13,728 2,162 92,777-90,615 14,312 2,770 93,548-90,778 Deferred taxes 8,362 15,133 37,254-22, ,269 1,301, , ,092 Current assets Inventories Raw materials, consumables and supplies 24,285 57,204 66,259-9,055 Work in progress 48, ,539 38, Finished goods and merchandise 445, , ,680 79, , , , ,947 Receivables and other assets Trade receivables from external companies 57, ,217 57, ,450 Receivables from related parties 76,673 67,823 92,669-24,846 Current income tax receivables 2,159 2,100 1, Financial assets 15,923 11,493 10,403 1,090 Other current assets 271,912 51, , , , , ,479-29,005 Cash and cash equivalents 201, ,921 42,008 76,913 1,142, , , ,855 Assets held-for-sale 1, ,676-1,047 1,144, , , ,808 1,878,600 2,106,839 1,533, ,900 Nordzucker Half-Year Report 2009/

12 Consolidated half-year financial statements Consolidated balance sheet as of August 31, 2009, Nordzucker AG, Braunschweig Shareholders equity and liabilities 28/2/ /8/ /8/2008 Change Shareholders equity Subscribed capital 123, , ,651 0 Capital reserves 127, , ,035 0 Retained earnings 407, , ,112 26,332 Other comprehensive income 6,072 15,068 39,316-24,248 Equity attributable to shareholders of the parent company 664, , ,114 2,084 Minority interests 53,498 86,279 64,265 22, , , ,379 24,098 Non-current provisions and liabilities Provisions for pensions and similar obligations 101, , ,381 31,512 Other provisions 21,391 23,228 27,347-4,119 Financial liabilities 233, , , ,468 Other financial liabilities 0 1, ,100 Other liabilities 27, ,069 19,960 80,109 Deferred taxes 54, ,974 82,436 83, , , , ,608 Current provisions and liabilities Provisions for pensions and similar obligations 5,108 5,108 4, Other provisions 38,599 68,005 19,941 48,064 Financial liabilities 262,924 87, , ,681 Current income tax liabilities 8,597 8,568 14,814-6,246 Trade payables 216,375 95, ,888-10,816 Liabilities towards related parties 8,257 77,431 17,493 59,938 Other financial liabilities 6,508 17,762 27,851-10,089 Other liabilities 175,664 69,054 18,260 50, , , ,593 3,194 1,878,600 2,106,839 1,533, ,900 Nordzucker Half-Year Report 2009/

13 Consolidated half-year financial statements Consolidated statement of changes in shareholders equity as of August 31, 2009, Nordzucker AG, Braunschweig Equity attributable to Other shareholders Subscribed Capital Retained comprehensive of the parent Minority capital reserves earnings income company interests Total equity TEUR TEUR TEUR TEUR TEUR TEUR TEUR As of 29/2/ , , ,446 28, ,198 65, ,442 Currency effects ,008 10, ,008 Fair value adjustment ,242 1, ,242 Total earnings recognised directly in equity ,250 11, ,250 Net income , ,850 1,062 20,912 Consolidated net income ,850 11,250 31,100 1,062 32,162 Dividend payment , , ,185 Others ,041-2,040 As of 31/8/ , , ,112 39, ,114 64, ,379 As of 28/2/ , , ,885 6, ,643 53, ,141 Currency effects ,877 4, ,877 Fair value adjustment ,119 4, ,119 Total earnings recognised directly in equity ,996 8, ,996 Net income 0 0 2, ,559 1,962 4,521 Consolidated net income 0 0 2,559 8,996 11,555 1,962 13,517 Dividend payment Others ,819 30,819 As of 31/8/ , , ,444 15, ,198 86, ,477 Shareholders structure Nordzucker AG EUR 123.7m share capital Nordzucker Holding Aktiengesellschaft: %, EUR 94.3m Union-Zucker Südhannover GmbH: %, EUR 13.4m Nordharzer Zucker AG: 7.83 %, EUR 9.7m Direct shareholders : 5.12 %, EUR 6.3m Nordzucker Half-Year Report 2009/

14 Financial calendar Financial calendar Publications October 30, 2009 Half-year Report 2009/2010 January 29, 2010 Nine-month Report 2009/2010 Online publications The following publications can be downloaded from Annual Report Interim Reports Declaration of compliance Sustainability Report Nordzucker Half-Year Report 2009/

15 Nordzucker AG Küchenstrasse 9 D Braunschweig Telephone: +49 (0) Fax: +49 (0) info@nordzucker.de Corporate communications Telephone: +49 (0) Investor relations Bianca Deppe-Leickel Telephone: +49 (0) ir@nordzucker.de Shares register Wilhelm Just Telephone: +49 (0) aktien@nordzucker.de Printed copies of this interim report for the Nordzucker Group are also available in German. Alternatively, the report can be downloaded in German or English from the internet under from the download center as a PDF.