Nordzucker AG Interim Report- Financial Year 2011/2012

Transcription

1 Nordzucker AG Interim Report- Financial Year 2011/2012 First Half-Year March 1 August 31, 2011

2 Nordzucker Half-Year Report 2011/2012 Group figures and ratios 2 Group figures and ratios first half-year 2011/2012 Operating business H1 2011/2012 H1 2010/2011 Change absolute Revenues EUR m Total revenues EUR m Gross income EUR m EBITDA EUR m EBIT EUR m Net income EUR m Cash flow from operating activities EUR m Investments in property, plant and equipment and intangible assets EUR m Balance sheet as of August 31 H1 2011/2012 H1 2010/2011 Change absolute Balance sheet total EUR m 1,689 1, Equity EUR m Equity ratio % Debt capital EUR m 834 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 2011/2012 H1 2010/2011 Change absolute Northern Europe Sugar factories 5 5 Sugar refineries 2 2 Central Europe Sugar factories 5 5 Liquid sugar factories 2 2 Bioethanol plants 1 1 Eastern Europe Sugar factories 3 3 Sugar refineries 1 1

3 Nordzucker Half-Year Report 2011/2012 Facts and trends 3 Nordzucker facts and trends Contents The Management Team 4 Letter from the Management Board 5 Sites in Europe 6 Management Report 7 Earnings, net assets and financial position 7 Revenues and earnings 7 Balance sheet and cash flow 8 Sugar beet developments 9 Supplementary report 9 Outlook 9 Income statement 10 Statement of comprehensive income 10 Cash flow statement 11 Balance sheet 12 Statement of changes in shareholders equity 14 Good result for the half-year In the first half of the 2011/2012 financial year, Nordzucker achieved revenues of EUR million. Although less sugar was available than in the previous year, revenues were only slightly down on the first half of 2010/2011. Net income for the first half came in at EUR 72.6 million more than twice the figure for the first six months of the previous period. Financial calendar 15 Campaign starts successfully This year s processing phase started on 7 September some two weeks earlier than in As large quantities of beet are anticipated, processing is expected to last until the middle of January throughout the Group, with the exception of Finland. The weather was good for beet growth and sugar content this year. In terms of sugar yields per hectare, we expect the harvest to far exceed the average seen in recent years, especially in Central Europe, Eastern Europe and Denmark.

4 Nordzucker Half-Year Report 2011/2012 The Management Team 4 A Starkes strong team Team at an the der top: Spitze: Mats Liljestam (born in 1959) Dr Michael Noth (born in 1962) Hartwig Fuchs (born in 1959) Dr Niels Pörksen (born in 1963) Axel Aumüller (born in 1957) Chief Marketing and Sales Officer at Nordzucker AG Chief Financial Officer at Nordzucker AG Chief Executive Officer at Nordzucker AG Chief Agricultural Officer at Nordzucker AG Chief Operating Officer at Nordzucker AG

5 Nordzucker Half-Year Report 2011/2012 Letter from the Management Board 5 Dear Shareholders, We finished the first half of the 2011/2012 financial year with a significant increase in earnings compared with the same period of the previous year. This was thanks to both good market conditions and the successful implementation of various cost-cutting measures at our factories and offices. The acquisition of Nordic Sugar is paying off, the optimisation of our investment portfolio has eliminated a number of expenses, and we have succeeded in significantly reducing our level of debt. On top of all that, we expect the beet harvest to be exceptionally good and produce a large amount of sugar this year and the campaign should last well into January. All in all, the prospects are extremely promising. Nevertheless, we still face some major challenges including those arising from the consolidation of the European sugar market. Meanwhile, discussions are well under way within the EU s decision-making bodies regarding the extension of the sugar market regime post-2014/2015. Although we currently expect the regime to remain in place and also will actively lobby for this, we must be prepared for forthcoming and possible changes in the sugar market. We must not allow ourselves to become complacent in the light of our achievements: the consolidation of the sugar market is already continuing apace. One of our prime objectives is to keep safeguarding and strengthening our independence and our market position as the second strongest on the market. To achieve this, we will keep consistently pursuing our initiative to enhance profitability over the next few years. We will also step up our joint efforts to integrate and internationalise our company. Yours sincerely, Nordzucker AG The Executive Board Hartwig Fuchs Axel Aumüller Mats Liljestam Dr Michael Noth Dr Niels Pörksen

6 Nordzucker Half-Year Report 2011/2012 Sites in Europe 6 Sites in Europe Headquarters Nordzucker D 1 Braunschweig Head Office A 2 Nordzucker Eastern Europe GmbH, Vienna DK 3 Nordic Sugar, Køpenhavn Sugar factories D 4 Clauen 5 Nordstemmen 6 Uelzen 7 Klein Wanzleben 8 Schladen DK 9 Nakskov 10 Nykøbing S 11 Örtofta FIN 12 Säkylä LT 13 Kèdainiai PL 14 Opalenica 15 Chełmża SK 16 Trenčianska Teplá D 17 Liquid sugar factory Groß Munzel 18 Liquid sugar factory Nordstemmen Northern Europe Refineries S 19 Arlöv FIN 20 Porkkala PL 21 Chełmża Sugar factories non-consolidated minority stake CZ 22 Dobrovice 23 České Meziříčí Other locations D 24 fuel 21, Klein Wanzleben Central Europe Eastern Europe

7 Nordzucker Half-Year Report 2011/2012 Management report 7 Earnings, net assets and financial position Consolidated revenues in EUR m H1 2010/11 H1 2011/12 The half-year financial report of the Nordzucker Group as of 31 August 2011 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 and give a true and fair view of the net assets, financial and earnings position of Nordzucker AG and its consolidated subsidiaries as well as its associated companies and joint ventures. The consolidated financial statements of Nordzucker AG include all subsidiaries with their financial statements as of 31 August 2011, the only exception being Norddeutsche Flüssigzucker GmbH & Co. KG due to its different financial year, which ends as of 30 June No changes have been made to the accounting methods used for the preparation of the consolidated financial statements as of 28 February Consolidated EBIT in EUR m For more information please see the Notes section of the 2010/2011 Annual Report. The production of sugar is a seasonal business. The production stage, from the beginning of September until the middle 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. H1 2010/11 H1 2011/12 In the 2010/2011 financial year, the company also disposed of its investments in the Hübner Group (December 2010) and the seeds business (September 2010). Earnings in the first half of the previous year were negatively affected by one-off expenses caused by Hübner. Revenues and earnings In the first half of the 2011/2012 financial year, the Nordzucker Group generated revenues of EUR million, which was only slightly lower than the previous year s total (EUR million). Prices were higher than in the previous year, which almost compensated for the fall in sales volumes. Overall, compared to the previous year, more sugar was imported and less of our own sugar sold. This drove up the cost of materials and services from EUR million to EUR million, while the reduction in stocks was comparably lower at EUR million (previous year: EUR million). At EUR 81.2 million, personnel expenses remained roughly the same as in the previous year (EUR 81.4 million). Depreciation, amortisation and impairment totalled EUR 43.1 million, compared to EUR 48.9 million in the previous year; other operating expenses fell from EUR million to EUR 80.3 million. The Hübner Group and the Hungarian subsidiary impacted on both items in the previous year.

8 Nordzucker Half-Year Report 2011/2012 Management report 8 Consolidated net income in EUR m 73 The operating result (EBIT) of the Nordzucker Group totalled EUR million in the first half of the 2011/2012 financial year, compared to EUR 83.1 million in the first half of the previous year. 34 H1 2010/11 H1 2011/12 Interest expense fell slightly, coming in below the previous year s EUR 26.9 million at EUR 25.5 million. A new loan agreement with much better terms was signed in June This initially led to negative one-off effects of approximately EUR 12.9 million. However, interest expense will fall significantly in the second half of the current financial year due to both the new loan agreement and the repayment of the financial liabilities entered into for the purchase of Nordic Sugar. Consolidated balance sheet structure as of August 31, 2011 in EUR m 1,689 1,689 65% 17% 18% Assets Non-current assets Inventories Other current assets 51% 31% 18% Equity & liabilities Consolidated net debt In EUR m 251 Equity Non-current liabilities Current liabilities Overall, consolidated net income for the period more than doubled, amounting to EUR 72.6 million, compared to EUR 33.8 million in the same period of the previous year. Cash flow and balance sheet The cash flow from operating activities totalled EUR million in the first half of the 2011/2012 financial year, compared to EUR million in the same period of 2010/2011. The reduction in stock was considerably lower than in the previous year, which was the main reason for this development. Investment in property, plant and equipment remained almost unchanged at EUR 29.5 million, having stood at EUR 30.2 million in the previous year. Cash flow from investing activities totalled EUR million, primarily as a result of the payment of the final instalment for the purchase of Nordic Sugar (EUR 73.6 million including interest), compared to a positive cash flow of EUR 14.9 million in the same period of the previous year, due first and foremost to the sale of the Serbian investments. Cash flow from financing activities amounted to EUR million, compared to EUR million in the previous year. At the end of the first half, the Nordzucker Group had cash and cash equivalents of EUR 73.6 million. The Nordzucker Group s consolidated balance sheet total fell from EUR 1,907.0 million in the same period in 2010/2011 to EUR 1,688.5 million on the reporting date. This primarily resulted from the optimisation of the investment portfolio and the repayment of the financial liabilities entered into for the purchase of Nordic Sugar. 148 The positive business developments prompted a rise in equity to EUR million, compared to EUR million in the previous first half. Together with the reduction in total assets, this increase led to an equity ratio of 50.6 per cent (previous year: 38.7 per cent). H1 2010/11 H1 2011/12 The company was able to considerably reduce its net debt. It amounted to EUR million, down from EUR million one year earlier.

9 Nordzucker Half-Year Report 2011/2012 Management report 9 The weather in 2011 has been perfect for beet growth and sugar formation. Plenty of sun in the spring followed by rainy summer months accelerated the beets early development and mass growth. Supplementary report There have been no significant changes to the situation of the company for the current year since the reporting date of the interim financial statements. Outlook The company recorded a pleasing result for the first half of 2011/2012 thanks to favourable market conditions. Falling sales volumes were offset by price increases in the quota sugar business. In light of the good market environment, the Group still anticipates that revenues will develop well in the current financial year. The price increases achieved on the market for the new sugar marketing year lead us to expect revenues will outstrip the previous year s figure. However, it is likely that both European and global sugar markets will cool down in the medium term. Lower interest payments and savings from the efficiency programme Profitability plus are having a positive impact on results. It is therefore currently to be expected that we will far exceed the previous year s result and post outstanding figures.

10 Nordzucker Half-Year Report 2011/2012 Consolidated half-year financial statements 10 Consolidated half-year financial statements Consolidated income statement for the period from March 1 to August 31, 2010, Nordzucker AG, Braunschweig 1/3/ /8/2011 1/3/ /8/2010 Change Revenues 900, ,967-13,651 Decrease in finished goods and work in progress 317, , ,363 Own work capitalised 1,406 1, Total revenues 584, , ,253 Other operating income 10,576 14,450-3,874 Cost of materials and services 278, , ,563 Personnel expenses 81,182 81, Depreciation of property, plant and equipment, amortisation and impairment of intangible assets 43,143 48,908-5,765 Appreciation of intangible assets and property, plant and equipment Other operating expenses 80, ,735-20,434 Operating result (EBIT) 112,048 83,133 28,915 Net interest a) Interest income and similar income 1, b) Interest expenses and similar expenses 25,496 26,877-1,381-24,279-26,334 2,055 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 3,779 1,684 2,095 3,779 1,684 2,095 Other net financial income/loss a) Other financial income 3,637 12,223-8,586 b) Other financial expenses 3,268 16,003-12, ,780 4,149 Net financial income/loss -20,131-28,430 8,299 Earnings before taxes 91,917 54,703 37,214 Income taxes 19,308 21,155-1,847 Result shutdown/sale of operations Consolidated net income 72,609 33,795 38,814 Consolidated net income attributable to minority interests 2,234 2, Consolidated net income attributable to shareholders of the parent company 70,375 31, Statement of comprehensive income Consolidated net income 72,609 33,795 38,814 Currency conversion for foreign operations -12,925 13,218-26,143 Net result of cash flow hedges -1,976-1, Income taxes Other net income/loss after taxes -1,312-1, Total net income/loss after taxes 58,372 45,854 12,518 Attributable to minority shareholders 2,234 1, Attributable to shareholders of the parent company 56,138 43,857 12,281

11 Nordzucker Half-Year Report 2011/2012 Consolidated half-year financial statements 11 Consolidated cash flow statement for the period from March 1 to August 31, 2011, Nordzucker AG, Braunschweig 1/3/ /8/2011 1/3/ /8/2010 Change Earnings before taxes 91,917 54,702 37,215 Interest and similar income -1, Interest and similar expenses 25,496 26,877-1,381 Net depreciation, amortisation and impairment on non-current assets 43,143 48,737-5,594 Depreciation, appreciation on financial investments Changes in non-current provisions 12,202-7,163 19,365 Other non-cash expenses Net loss/income from associated companies Earnings from discontinued operations Changes in finished goods and work in progress 317, , ,363 Changes in current provisions -18,094 18,054-36,148 Proceeds on disposal of non-current assets ,370 Changes in inventories, trade receivables and other assets not attributable to investing or financing activities -33,160-53,255 20,095 Changes in trade payables and other liabilities not attributable to investing or financing activities -126, ,601-9,474 Interest received in the financial year 1, Interest paid in the financial year -9,566-24,092 14,526 Taxes paid in the financial year -11, ,306 Cash flow from operating activities 291, , ,682 Proceeds on disposal of property, plant and equipment 3,290 2, Payments for investments in property, plant and equipment -29,457-30, Proceeds on disposal of intangible assetss 0 3,889-3,889 Payments for investments in intangible assets -2,327-5,952 3,625 Proceeds on disposal of financial assets 4 4,590-4,586 Payments for investments in financial assets Proceeds from the sale of consolidated companies and other business unit ,000-39,166 Payments for the acquisition of consolidated companies and other business units -73, ,637 Cash flow for investing activities -101,296 14, ,187 Payments to shareholders (dividends) -22,879-1,342-21,537 Proceeds from borrowing 40,552 22,625 17,927 Loan repayments -184, , ,800 Cash flow from financing activities -166, , ,190 Changes in cash and cash equivalents 23,834 66,513-42,679 Cash and cash equivalents at the beginning of the period 50, ,942-63,653 Cash from the acquisition of consolidated companies and other business units Additions through mergers/other changes Cash and cash equivalents at the end of the period 73, , ,645

12 Nordzucker Half-Year Report 2011/2012 Consolidated half-year financial statements 12 Consolidated balance sheet as of August 31, 2011, Nordzucker AG, Braunschweig Assets 28/2/ /8/ /8/2010 Non-current assets Fixed assets Intangible assets 179, , ,177 Property, plant and equipment 906, , ,247 Investment property 8,516 8,022 8,713 Financial investments Shares in associated companies and joint ventures accounted for under the equity method 3,838 3,838 8,409 Other financial investments 20,477 20,474 18,088 24,315 24,312 26,497 1,118,784 1,094,261 1,133,634 Receivables and other assets Financial assets Other assets 1,530 1,442 1,676 1,562 1,442 2,304 Deferred taxes 5,383 4,283 8,448 1,125,729 1,099,986 1,144,386 Current assets Inventories Raw materials, consumables and supplies 40,836 60,864 48,241 Work in progress 17,981 82,588 75,859 Finished goods and merchandise 533, , , , , ,911 Receivables and other assets Trade receivables from external companies 155, , ,689 Receivables from related parties Current income tax receivables 39 1,501 14,711 Financial assets 21,061 9,035 19,759 Other current assets 35,730 36,056 26, , , ,563 Cash and cash equivalents 50,289 73, , , , ,745 Assets held for sale , , , ,637 1,981,621 1,688,511 1,907,023

13 Nordzucker Half-Year Report 2011/2012 Consolidated half-year financial statements 13 Consolidated balance sheet as of August 31, 2011, Nordzucker AG, Braunschweig Shareholders equity and liabilities 28/2/ /8/ /8/2010 Shareholders equity Subscribed capital 123, , ,651 Capital reserves 127, , ,035 Retained earnings 471, , ,583 Other comprehensive income 54,983 40,747 31,586 Equity attributable to shareholders of the parent company 777, , ,855 Minority interests 41,497 43,066 39, , , ,758 Non-current provisions and liabilities Provisions for pensions and similar obligations 134, , ,509 Other provisions 19,218 30,723 33,819 Financial liabilities 275, , ,664 Liabilities towards related parties 5,500 5,500 5,500 Other financial liabilities 1,447 1,362 1,783 Other liabilities 23,763 22,179 25,162 Deferred taxes 160, , , , , ,587 Current provisions and liabilities Provisions for pensions and similar obligations 5,277 5,277 5,268 Other provisions 53,051 34,868 52,222 Financial liabilities 87,880 32,667 22,698 Current income tax liabilities 27,444 35,609 28,437 Trade payables 215, , ,996 Liabilities towards related parties 12,313 12,689 11,056 Other financial liabilities 87,457 12,900 84,560 Other liabilities 54,325 60,548 70, , , ,185 Liabilities from discontinued operations ,493 1,981,621 1,688,511 1,907,023

14 Nordzucker Half-Year Report 2011/2012 Consolidated half-year financial statements 14 Consolidated statement of changes in shareholders equity for the consolidated quarterly financial statements as of August 31, 2011, Nordzucker AG, Braunschweig Equity attributable to Other shareholders Subscribed Capital Retained comprehensive of the parent Minority capital reserves earnings income company interests Total equity As of 01/3/ , , ,294 19, ,501 89, ,999 Currency effects , ,793 2,002 33,795 Fair value adjustment ,064 12, ,059 Total earnings recognised directly in equity ,793 12,064 43,857 1,997 45,854 Dividend payment ,346-1,346 Others ,246-49,749 As of 31/8/ , , ,583 31, ,855 39, ,758 As of 01/3/ , , ,569 54, ,238 41, ,735 Currency effects , ,375 2,234 72,609 Fair value adjustment ,237-14, ,237 Total earnings recognised directly in equity ,375-14,237 56,138 2,234 58,372 Dividend payment , , ,005 Others As of 31/8/ , , ,077 40, ,510 43, ,576 Shareholders structure Nordzucker AG EUR 123.7m share capital Nordzucker Holding Aktiengesellschaft 76.2 %, EUR 94.3m Union-Zucker Südhannover GmbH 10.8 %, EUR 13.4m Nordharzer Zucker AG 7.8 %, EUR 9.7m Direktaktionäre 5.2 %, EUR 6.3m

15 Important dates Financial calendar Publications 14 October 2011 Publication of the Q2 Interim Report 2011/ January 2012 Publication of the Q3 Interim Report 2011/ July 2012 Annual General Meeting of Nordharzer Zucker Aktiengesellschaft 11 July 2012 Annual General Meeting of Nordzucker Holding AG 12 July 2012 Annual General Meeting of Nordzucker AG Online publications The following publications can be downloaded from Annual Report Interim reports Statement of compliance Sustainability Report

16 Nordzucker AG Küchenstraße Braunschweig Germany Telephone: +49 (0) Fax: +49 (0) info@nordzucker.de Corporate Communications Klaus Schumacher Telephone: +49 (0) pr@nordzucker.de Investor Relations Bianca Deppe-Leickel Telephone: +49 (0) ir@nordzucker.de Shares register Claus-Friso Gellermann 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.