Nordzucker AG Interim Report- Financial Year 2011/2012

Transcription

1 Nordzucker AG Interim Report- Financial Year 2011/2012 First Quarter March 1 May 31, 2011

2 Nordzucker Q1-Report 2011/2012 Group figures and ratios 2 Group figures and ratios first quarter 2011/12 Operating business Q1 2011/2012 Q1 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 May 31 Q1 2011/2012 Q1 2010/2011 Change absolute Balance sheet total EUR m 1,810 1, Equity EUR m Equity ratio % Debt capital EUR m 959 1, Financial liabilities EUR m Cash and cash equivalents EUR m Net debt EUR m (Cash and cash equivalents less financial liabilities) Structure figures Q1 2011/2012 Q1 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 Q1-Report 2011/2012 Facts and trends 3 Nordzucker facts and trends Highlights of the first quarter 2011/2012 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 Cash flow statement 11 Balance sheet 12 Revenues and results at a high level In the first quarter of the 2011/2012 financial year, Nordzucker achieved revenues of EUR million, thus almost reaching the previous year s high level. The positive market conditions led to results doubling over the same quarter in the previous year at EUR 34.5 million. Statement of changes in shareholders equity 14 Financial calendar 15 EU reacts to sugar shortage In reaction to the sugar shortage in the EU, the European Commission decided in late March to license initially 500,000 tonnes of non-quota sugar for use in foodstuffs. In addition, it opened an import quota of 300,000 tonnes free of customs duty, which was increased again in June by a further 200,000 tonnes. Further imports are possible within the framework of a tendering procedure. Good prospects for a high-yield campaign Early sugar beet sowing and good initial conditions lay the foundations for high yields and above-average beet quality. Everything is pointing to 2011 generating extraordinarily high yields.

4 Nordzucker Q1-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 Q1-Report 2011/2012 Letter from the Management Board 5 Dear Shareholders, Good market and sales conditions in the first quarter of 2011/2012 led to a very positive result. All regions profited from higher prices and strong demand. In addition, we also have successes to report with regard to costs. The savings measures implemented from the efficiency programme Profitability plus are now bearing fruit. Furthermore, the repayment of loans has also led to a reduced interest burden on the consolidated result. We can be very pleased with this development. Over the last few months, however, we have had to learn how great the price fluctuations on the sugar market have become and how the global market is increasingly impacting on the EU internal market. Consequently, forecasts are becoming more difficult, and the market will be a greater challenge for us going forward. We must be prepared for this. That is why it is even more important to drive forward the projects we have launched. This includes our efficiency project Profitability plus, with which we intend to achieve annual savings totalling EUR 67 million by 2014/2015, and our initiative targeting a long-term increase in competitiveness and yields in sugar beet cultivation through the year In the past financial year we created a solid basis for the future development of Nordzucker AG. Consequently, we are now in a good starting position for further growth and internationalisation in our core business. Yours sincerely, Nordzucker AG The Executive Board Hartwig Fuchs Axel Aumüller Mats Liljestam Dr Michael Noth Dr Niels Pörksen

6 Nordzucker Q1-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 Q1-Report 2011/2012 Management report 7 Earnings, net assets and financial position Consolidated revenues In EUR m Q1 2010/2011 Q1 2011/2012 The quarterly financial report of the Nordzucker Group as of 31 May 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 include all subsidiaries with their financial statements as of 31 May 2011, the only exception being Norddeutsche Flüssig - zucker GmbH & Co. KG due to its different financial year, which ends as of 31 March No changes have been made to the accounting methods used for the preparation of the consolidated financial statements as of 28 February 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 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 first quarter results. Revenues and earnings In the first quarter of the 2011/2012 financial year, Nordzucker earned revenues of EUR million, which was only slightly lower than the previous year s total (EUR million). Falling sales volumes were almost entirely offset by higher prices. Compared to the previous year, more sugar was imported and less of our own sugar sold. As a result, the cost of materials and services increased from EUR 89.6 million to EUR million, while the reduction in stock was considerably smaller. Personnel expenses at EUR 41.6 million remained roughly the same as in the previous year (EUR 41.1 million). Depreciation, amortisation and impairment also remained nearly constant and totalled EUR 21.8 million, as compared with EUR 21.2 million. By contrast, other operating expenses fell from EUR 50.2 million to EUR 37.7 million.

8 Nordzucker Q1-Report 2011/2012 Management report 8 The operating result (EBIT) of the Nordzucker Group totalled EUR 43.7 million in the first quarter of the 2011/2012 financial year, compared to EUR 38.6 million in the previous year. Compared with the same period of the previous year, the interest expense fell from EUR 12.8 million to EUR 7.3 million. The overall interest burden was reduced significantly by the repayment of the financial liabilities entered into for the purchase of Nordic Sugar. Overall, consolidated net income for the period almost doubled, coming in at EUR 34.5 million, compared to EUR 17.4 million in the same period of the previous year. Consolidated balance sheet structure as of May 31, 2011 In EUR m 1,810 1,810 62% 24% 14% Assets Non-current assets Inventories Other current assets 47% 31% 22% Equity & liabilities Equity Non-current liabilities Current liabilities Cash flow and balance sheet Cash flow from operating activities came to EUR 77.6 million, after EUR million in the same period of the previous year. Investment in property, plant and equipment remained almost unchanged at EUR 10.5 million, compared to EUR 10.8 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 34.2 million in the same period of the previous year primarily due to the sale of the Serbian equity investments. Cash flow from financing activities amounted to EUR million, compared to EUR million in the previous year. As of the end of the quarter, the Nordzucker Group had cash and cash equivalents of EUR 15.7 million. As a result of the investment structure optimisation and reduced inventories, the consolidated assets of the Nordzucker Group fell compared to as of the reporting date for the same period in the previous year. As of 31 May 2011 they totalled EUR 1,809.6 million, compared with EUR 1,995.3 million in the first quarter of the pre - vious year. Equity increased significantly as a result of the positive business development, rising from EUR million to EUR million. Together with the reduction in total assets, this increase lead to an equity ratio of 47.0 per cent (previous year: 36.4 per cent). Net debt was reduced considerably compared to the previous year, totalling EUR million after EUR million in the previous year.

9 Nordzucker Q1-Report 2011/2012 Management report 9 Sugar beet development After early sowing, large amounts of precipitation ensured quick sugar beet germination. As a consequence, we have seen high plant density virtually across the board. These are prime conditions for high yield and above-average quality for the coming beet harvest. While other crops such as rapeseed and wheat suffered severely from the lack of water, the young beet continued to develop extremely well, however. However, from the start of April onwards, there was a constant lack of rain in many parts of Central Europe. Combined with unusually high temperatures, this meant that the soil dried out very quickly. Some farms experienced wind erosion and minor plant losses right through to May as a result. While other crops such as rapeseed and wheat suffered severely from the lack of water, the young beet continued to develop extremely well, however. These weather conditions helped to stimulate the formation of a deep root system in the beet. From early June, rain had a very positive impact on the further sugar beet growth. As of late June, overall the beet development in Central and Eastern Europe, including Denmark, suggests 2011 will be a good beet year. Crops are currently developing at an average rate in Sweden, Finland and Lithuania. 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 development of sales in the current financial year will be largely dependent on the 2010 campaign, which resulted in considerably lower yields than the 2009 campaign. Our sugar sales in 2011/2012 will be correspondingly lower and will lead to smaller revenues. At the same time, however, the higher prices should increase revenues. In addition, further cost reductions from our Profitability plus programme will have a positive impact on our results. As a result of the much larger price fluctuations on agricultural markets, making forecasts has become more difficult. Overall, if business develops as expected, we expect net income for 2011/2012 to exceed the level of 2010/2011.

10 Nordzucker Q1-Report 2011/2012 Consolidated quarterly financial statements 10 Consolidated quarterly financial statements Consolidated income statement for the period from March 1 to May 31, 2010, Nordzucker AG, Braunschweig 1/3/ /5/2011 1/3/ /5/2010 Revenues 460, ,126 Decrease in finished goods and work in progress 185, ,168 Own work capitalised Total revenues 275, ,616 Other operating income 4,566 5,936 Cost of materials and services 135,290 89,594 Personnel expenses 41,590 41,097 Depreciation of property, plant and equipment, amortisation and impairment of intangible assets 21,767 21,157 Appreciation of intangible assets and property, plant and equipment 0 0 Other operating expenses 37,722 50, , ,404 Operating result (EBIT) 43,701 38,554 Net interest a) Interest income and similar income b) Interest expenses and similar expenses 7,255 12,800-6,295-12,712 Net income/loss from investments a) Net income/loss from associated companies and joint ventures accounted for under the equity method 0 0 b) Other net income from investments 3,764 1,669 3,764 1,669 Other net financial income/loss a) Other financial income 2,317 8,181 b) Other financial expenses 1,281 10,297 1,036-2,116 Net financial income/loss -1,495-13,159 Earnings before taxes 42,206 25,395 Income taxes 7,692 8,036 Consolidated net income 34,514 17,359 Consolidated net income attributable to minority interests 1,150 1,005 Consolidated net income attributable to shareholders of the parent company 33,364 16,354 Statement of comprehensive income Consolidated net income 34,514 17,359 Currency conversion for foreign operations -3,880 14,102 Net result of cash flow hedges 1,277 1,204 Income taxes Other net income/loss after taxes -2,794 14,957 Total net income/loss after taxes 31,720 32,316 Attributable to minority interests 1,150 1,000 Attributable to shareholders of the parent company 30,570 31,316

11 Nordzucker Q1-Report 2011/2012 Consolidated quarterly financial statements 11 Consolidated cash flow statement for the period from March 1 to May 31, 2011, Nordzucker AG, Braunschweig 1/3/ /5/2011 1/3/ /5/2010 Earnings before taxes 42,205 25,587 Interest and similar income Interest and similar expenses 7,256 12,800 Net depreciation, amortisation and impairment on non-current assets 21,767 21,157 Depreciation, appreciation on financial investments 0 0 Changes in non-current provisions 3,761-1,806 Other non-cash expenses 0-2 Net loss/income from associated companies 0 0 Earnings from discontinued operations Changes in finished goods and work in progress 185, ,168 Changes in current provisions 12,943 7,747 Proceeds on disposal of non-current assets Changes in inventories, trade receivables and other assets not attributable to investing or financing activities -63,859 3,160 Changes in trade payables and other liabilities not attributable to investing or financing activities -122, ,480 Interest received in the financial year Interest paid in the financial year -5,750-11,718 Taxes paid in the financial year -3,999-18,582 Cash flow from operating activities 77, ,331 Proceeds on disposal of property, plant and equipment 145 1,945 Payments for investments in property, plant and equipment -10,451-10,773 Proceeds on disposal of intangible assets Payments for investments in intangible assets Proceeds on disposal of financial assets 2 3,260 Payments for investments in financial assets Proceeds from the sale of consolidated companies and other business units ,000 Payments for the acquisition of consolidated companies and other business units -73,634 0 Cash flow for investing activities -83,906 34,238 Payments to shareholders (dividends) -5 0 Proceeds from borrowing 33,539 15,767 Loan repayments -63, ,952 Cash flow from financing activities -29, ,185 Changes in cash and cash equivalents -36,181-51,616 Cash and cash equivalents at the beginning of the period 50, ,942 Cash from the acquisition of consolidated companies and other business units 0 0 Additions through mergers/other changes 1, Cash and cash equivalents at the end of the period 15,728 62,406

12 Nordzucker Q1-Report 2011/2012 Consolidated quarterly financial statements 12 Consolidated balance sheet as of May 31, 2011, Nordzucker AG, Braunschweig Assets 28/2/ /5/ /5/2010 Non-current assets Fixed assets Intangible assets 179, , ,090 Property, plant and equipment 906, , ,546 Investment property 8,516 8,921 8,575 Financial investments Shares in associated companies and joint ventures accounted for under the equity method 3,838 3,838 7,189 Other financial investments 20,477 20,476 20, ,314 27,853 Receivables and other assets Financial assets Other assets 1,530 1,442 2,338 1,562 1,480 2,977 Deferred taxes 5,383 9,057 13,508 1,125,729 1,116,057 1,156,549 Current assets Inventories Raw materials, consumables and supplies 40,836 53,531 30,815 Work in progress 17,981 40,929 63,977 Finished goods and merchandise 533, , , , , ,299 Receivables and other assets Trade receivables from external companies 155, , ,835 Receivables from related parties ,670 Current income tax receivables ,049 Financial assets 21,061 17,683 19,108 Other current assets 35,730 35,439 23, , , ,525 Cash and cash equivalents 50,289 15,728 62, , , ,229 Assets held for sale , , , ,742 1,981,621 1,809,631 1,995,291

13 Nordzucker Q1-Report 2011/2012 Consolidated quarterly financial statements 13 Consolidated balance sheet as of May 31, 2011, Nordzucker AG, Braunschweig Shareholders equity and liabilities 28/2/ /5/ /5/2010 Shareholders equity Subscribed capital 123, , ,651 Capital reserves 127, , ,035 Retained earnings 471, , ,113 Other comprehensive income 54,983 52,342 34,484 Equity attributable to shareholders of the parent company 777, , ,283 Minority interests 41,497 42,766 40, , ,734 Non-current provisions and liabilities Provisions for pensions and similar obligations 134, , ,553 Other provisions 19,218 22,659 39,341 Financial liabilities 275, , ,547 Liabilities towards related parties 5,500 5,500 6,029 Other financial liabilities 1,447 1,342 1,843 Other liabilities 23,763 22,782 28,472 Deferred taxes 160, , , , , ,288 Current provisions and liabilities Provisions for pensions and similar obligations 5,277 5,277 5,268 Other provisions 53,051 61,083 42,189 Financial liabilities 87, , ,753 Current income tax liabilities 27,444 34,870 25,182 Trade payables 215,187 95, ,133 Liabilities towards related parties 12,313 12,305 7,806 Other financial liabilities 87,457 13,348 89,470 Other liabilities 54,325 59,401 17, , , ,019 Liabilities from discontinued operations ,250 1,981,621 1,809,631 1,995,291

14 Nordzucker Q1-Report 2011/2012 Consolidated quarterly financial statements 14 Consolidated statement of changes in shareholders equity for the consolidated quarterly financial statements as of May 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 28/2/ , , ,294 19, ,501 89, ,999 Currency effects ,107 14, ,102 Fair value adjustment Total earnings recognised directly in equity ,962 14, ,957 Consolidated net income , ,354 1,005 17,359 Total net income ,354 14,962 31,316 1,000 32,316 Dividend payment Others ,047-49,581 As of 31/5/ , , ,113 34, ,283 40, ,734 As of 28/2/ , , ,569 54, ,238 41, ,735 Currency effects ,804-3, ,804 Fair value adjustment ,086 1, ,086 Total earnings recognised directly in equity ,718-2, ,718 Consolidated net income , ,364 1,150 34,514 Total net income ,364-2,718 30,646 1,150 31,796 Dividend payment Others As of 31/5/ , , ,918 52, ,946 42, ,712 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 Direct shareholders 5.2 %, EUR 6.3m

15 Important dates Financial calendar Publications July 13, 2011 Release Q1 Interim Report 2011/2012 October 14, 2011 Release HY Interim Report 2011/2012 January 13, 2012 Release Q3/9M Interim Report 2011/2012 Online publications The following publications can be downloaded from Annual Report Interim Reports Declaration 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.