Südzucker. Group Thomas Kölbl (CFO) Investor Roadshow Zurich 18 th June 2009

Transcription

1 Südzucker Group Thomas Kölbl (CFO) Investor Roadshow Zurich 18 th June 2009

2 Agenda 1. Overview and strategic objectives page 3 2. Financial Highlights page 7 3. Annual Financial Statement 2008/09 page Development of Segments Sugar page 22 Special Products page 32 CropEnergies page 41 Fruit page Outlook page Appendix Long-term development of key figures page 54 Additional information page 58 Südzucker Group June 2009, page 2

3 Südzucker Group at a glance Single global food company with headquarters and stock quotation in Germany (MDAX, MSCI; Market Cap 2.7 bn ) Approx. 70 % of revenues generated outside Germany Defensive, non-cyclical business model Development of new growth markets (e.g. Russia, China, Brazil) Early market entry into growing business platforms with BENEO (Functional Food) and Fruit Preparations Growth option Bioethanol triggered CropEnergies (6%) Group revenues 5.9 bn * PortionPack (7%) Freiberger (32%) Sugar (56%) Special Products (24%) BENEO (22%) Starch** (39%) Fruit (14%) * FY 2008/09 ** includes AGRANA bioethanol activities Südzucker Group June 2009, page 3

4 Südzucker Group: Market Position and Strategic Objectives Segment/Division Market Position Strategy / Main Drivers Sugar BENEO Starch Freiberger CropEnergies Fruit Preparations Fruit Juice Concentrates #1 in Europe #1 worldwide in Isomalt and Oligofructose #1 in Europe in frozen pizza Objective: #1 in Europe by 2010 #1 worldwide #1 in Europe Taking advantage of transition period within the sugar industry via further enhancement of leading market position in Europe internal efficiency gains Leverage strength of core products into product innovations External growth only via small add-ons feasible Full exploitation of implemented capacity build-up Take full benefit of global increase in demand for healthy food and upmarket products e.g. yoghurt drinks, wellness products, convenience food Usage of integrated platform to raise synergies in combined global sourcing and distribution Südzucker Group June 2009, page 4

5 Südzucker was and is a high-growth company 2002/ /09 6% 21% 14% 4.4 bn 79% 24% 5.9 bn 56% Proven track record of growth; CAGR 2002/ /09 > 5% on group level and 18% for nonsugar activities Diversification via significant investments into segments special products (BENEO and starch), CropEnergies and fruit Capacity upgrades bioethanol have been completed by end of FY 2008/09 Past investments will increase revenue and earnings contributions of special products, CropEnergies and fruit in midterm to approx. 50% Südzucker Group June 2009, page 5 Sugar Special Products CropEnergies Fruit

6 Agenda 1. Overview and strategic objectives page 3 2. Financial Highlights page 7 3. Annual Financial Statement 2008/09 page Development of Segments Sugar page 22 Special Products page 32 CropEnergies page 41 Fruit page Outlook page Appendix Long-term development of key figures page 54 Additional information page 58 Südzucker Group May 2009, page 6

7 Financial Highlights 2008/09 Group revenues up 2% to 5.9 (5.8) bn Operating profit rises 11% to 258 (233) mn Segment sugar generates higher profits at 137 (60) mn thanks to reduced charges from the restructuring phase of the EU sugar market regulation Special products segment growth remains robust, business unit reaches prior year s profit level at 108 (107) mn despite substantial commodity price fluctuations CropEnergies segment again generates significantly higher revenues. Profit decline driven by higher cost of raw material mitigated by volume growth and lower costs Fruit segment revenues decline. Profit significantly impacted by fruit juice concentrates inventory write-down during the second quarter Group net profit rises to 183 (100) mn, EPS 0.86 (0.10) Cashflow at 504 (498) mn retained on high level Successful placement of promissory note in April 2009 (150 mn ; coupon 5.90%; maturity 2014) Südzucker Group May 2009, page 7

8 Südzucker Group: Key Figures (in mn ) 2008/ /08 Δ Revenues ,6% EBITDA EBITDA-Margin 8,3% 8,5% Operating profit ,6% Operating Margin 4,4% 4,0% Restructuring and special items Income from operations (EBIT) ,4% Cashflow ,2% Net Financial Debt ,3% Equity Ratio 41,9% 41,7% Capital Employed ,6% RoCE 5,2% 4,7% Earnings per share ( ) 0,86 0,10 0,76 Cashflow per share ( ) 2,66 2,63 0,03 1,2% Dividend per share ( ) 1) 0,40 0, ) Proposal Südzucker Group June 2009, page 8

9 Agenda 1. Overview and strategic objectives page 3 2. Financial Highlights page 7 3. Annual Financial Statement 2008/09 page Development of Segments Sugar page 22 Special Products page 32 CropEnergies page 41 Fruit page Outlook page Appendix Long-term development of key figures page 54 Additional information page 58 Südzucker Group June 2009, page 9

10 Revenues by segment (in mn ) 2008/ /08 Δ Südzucker Group ,6% Sugar ,2% Special Products ,2% CropEnergies ,8% Fruit ,6% Sugar: In H1 sale of higher quota sugar production of 2007 campaign. Since H2 gradual decrease of quantity following the quota return of 0.9 mn t, effective since sugar marketing year (SMY) 2008/09. Special Products: Growth mainly driven by production start of bioethanol facility in Pischelsdorf (Austria) and enlargement of starch business. CropEnergies: Organic growth (+48%) driven by sales increase. Additionally, acquisition of Ryssen Alcools (France) as of 30th of June Fruit: Decrease caused by lower sales of apple juice concentrates and weakening of demand for fruit preparations in light of economic downturn. Südzucker Group: Declining momentum of sugar and fruit segments overcompensated by ongoing dynamic growth of special products and CropEnergies segments Südzucker Group June 2009, page 10

11 Operating profit by segment (in mn ) 2008/ /08 Δ Südzucker Group ,6% Sugar > 100 % Special Products ,7% CropEnergies ,3% Fruit Sugar: Start of recovery mainly due to decline of burden from restructuring phase of EU sugar market regulation (SMR). Special Products: Higher sales in starch, Freiberger and BENEO in contrast to higher energy and fixed costs as well as start-up costs in Pischelsdorf. CropEnergies: Limited impact of higher raw material and lower ethanol prices due to volume increase and usage of existing cost advantages. Fruit: Decline mainly caused by significant decrease in prices for apple juice concentrates and subsequent write-down of inventory from pre-year harvest. Südzucker Group: Negative temporary earnings impact of segment fruit clearly overcompensated by earnings improvement in sugar segment Südzucker Group June 2009, page 11

12 Result from restructuring and special items (mn. ) 2008/ /08 Δ Sales ,6% Operating Profit ,6% Restructuring & special items thereof Sugar thereof Special products thereof CropEnergies thereof Fruit Income from operations (EBIT) ,1% Result from restructuring and special items mainly influenced by quota renouncement of 0,26 mn t within 2. wave (EU-restructuring assistance 141 mn ). Expenses for 4 factory closures in Poland and the closedown of the beet receiving area in Hollogne (Belgium). Start-up costs of the bioethanol plants in Wanze (Belgium) and Pischelsdorf (Austria). Südzucker Group June 2009, page 12

13 Earnings before income taxes (in mn ) 2008/ /08 Δ Operating income Restructuring and special items Income from operations (EBIT) Income from associated companies Financial expense Earnings before income taxes Income from associated companies exclusively attributable to the sugar segment largely comprises income from the phaseout of Eastern Sugar B.V. and the prorated income from the sales joint venture Maxi S.R.L., Bolzano, Italy. The financial result worsened year-over-year which, in addition to a higher interest expense as a result of a higher average net debt, is also attributable to largely measurement-related, non cash-relevant foreign exchange losses (-39 mn ) from the group financing of our Eastern European companies in euros. Südzucker Group June 2009, page 13

14 Earnings per share (in mn ) 2008/ /08 Δ Earnings before income taxes Taxes on income Consolidated net earnings thereof Südzucker AG shareholders thereof hybrid capital thereof other minority interest Earnings per share ( ) 0,86 0,10 0,76 Group tax expense of 21%. Previous year s tax rate (17%) contained a positive one-off effect in light of the German tax reform in Other minority interests consist mainly of minority shareholders of the AGRANA Group, which contributed to the annual results of the AGRANA subgroup. Earnings per share include the one-off income out of the EU restructuring assistance in light of the quota renouncement of March Südzucker Group June 2009, page 14

15 Investments (in mn ) 2008/ /08 Δ Capex ,2% Sugar ,0% Special Products ,7% CropEnergies ,0% Fruit ,7% Financial Assets ,3% Sugar Special Products CropEnergies Fruit Subtotal ,4% Purchase new sugar quota 3-3 Südzucker Group ,8% Sugar: Reduction of maintenance capex; Completion of raw sugar refinery in Bosnia to strengthen penetration of Balkans region Special Products: Extension of bioethanol and starch capacities at HUNGRANA (Hungary) CropEnergies: =44% of total investments: Completion of Wanze; Extension of Zeitz to 360,000 m 3 p.a. Fruit: New production line in Brasil Südzucker Group: Reduction of total investments by 23% Südzucker Group June 2009, page 15

16 Development of net financial debt due to (in mn ) Temporary charges of transition period within the EU sugar market regime (Segment sugar) Payments to the EU restructuring fund -549 (-507) mn High level of investments for the last time completion of capacity enlargement CropEnergies Cashflow Working Capital -424 Investments Dividends Disposal of sugar quotas NFD NFD NFD NFD as of 28th 2009 does not include cash inflow of 446 mn from EU restructuring assistance (June 2009) Südzucker Group June 2009, page 16

17 Balance sheet ratios (in mn ) Total assets Equity Equity ratio 41,9% 41,7% Net Financial Debt (NFD) Gearing (NFD/Equity) 50,5% 45,7% Cashflow NFD / Cashflow 3,2x 3,0x Goodwill Property, plant, equipment Working Capital Capital Employed RoCE 5,2% 4,7% Südzucker Group June 2009, page 17

18 Südzucker-Group: Liquidity profile 2007/08 Q1 2008/09 Q2 2008/09 Q3 2008/ /09 (mn ) 29th Febr st May st August th Nov th Febr 2009 Net financial debt Cash & cash equivalents Gross financial debt Long-term financial debt Short-term financial debt Credit lines: Cash & cash equivalents Bank credit lines undrawn Syndicated loan facility (July 2012) undrawn Commercial paper programm undrawn Liquidity reserves: + Cash & cash equivalents Bank credit lines (undrawn) Syndicated loan facility (undrawn) Commercial paper (undrawn) Liquidity reserves total: Südzucker receives EU restructuring assistance of 446 mn in June 2009 for sugar quota return Südzucker Group June 2009, page 18

19 Return on Capital Employed (RoCE) 2008/ / /09 (in mn ) RoCE RoCE Op. Ergebnis Cap. Employed Südzucker Group 5,2% 4,7% Sugar 5,0% 2,2% Special Products 8,4% 9,0% CropEnergies 8,2% 10,0% Fruit * neg. 5,6% * Adjustment segment fruit: Goodwill book value redirected to participation level of parent company Sugar: Increase as a result of lower capital commitment and significant earnings uplift Special Products: Decline due to capacity extension whilst earnings are stable CropEnergies: Decrease in light of reduced earnings and stable capital employed level Fruit: RoCE reflects special development of operating profit, especially due to the write-down of inventory in division fruit juice concentrates Südzucker Group: Earnings increase in segment sugar leads to RoCE improvement on group level Südzucker Group June 2009, page 19

20 Conclusion: Annual Financial Statement 2008/09 Südzucker again obtain targets in volatile energy and commodity markets set at the beginning of the fiscal year, despite a significant deterioration of the economic environment in light of the financial and economic crises in the meanwhile. Unchallenged growth path of the group, despite first time impact from quota renouncement and a significant weakening of the whole economy. Group operating profit rises, despite substantial distortion in commodity markets and a significant negative one-off impact in segment fruit. Further extension of growth segments special products and CropEnergies. Despite high temporary structural burden of transition phase of the sugar market reform, cash flow is retained on a high level. Südzucker Group June 2009, page 20

21 Agenda 1. Overview and strategic objectives page 3 2. Financial Highlights page 7 3. Annual Financial Statement 2008/09 page Development of Segments Sugar page 22 Special Products page 32 CropEnergies page 41 Fruit page Outlook page Appendix Long-term development of key figures page 54 Additional information page 58 Südzucker Group June 2009, page 21

22 Successful reform process leads to market equilibrium* (mn t) Successful reform process Sugar quota reduction**: EU overall -28%, Südzucker -21% SMY 2006/07 Südzucker Group June 2009, page 22 SMY 2005/06 SMY 2006/07 SMY 2007/08 EU sugar exports EU sugar quota for sugar marketing year (SMY***) Quota renouncements Mainly imports from ACP / LDC countries (expected) EU quota sugar demand (expected) SMY 2008/09 SMY 2009/10e (and going forward) * Simplified and rounded view ** excl. renouncement of isoglucose and inulinfructose quota *** Sugar marketing year: Oct. Sep.

23 Strong position within challenging EU environment Successful reform of sugar market regime After 2 years of transition with slow momentum in quota renouncements leading to high economic pressure in the whole industry, sugar marketing year 2008/09 clearly marks the turning point In total, EU goal of 6 mn t quota renouncement with 5.8 mn t by sugar marketing year 2009/10 with already more than 96% achieved Südzucker has participated in reform process via 0.87 mn t quota renouncements Südzucker- Group (24 %) Nordzucker / Danisco (15 %) EU-Quota SMY 2008/09 British Sugar / Ebro Sugar (12 %) Tereos (11 %) Pfeifer & Langen (6 %) All others (32 %) Südzucker Group June 2009, page 23 SMY: Sugar marketing year

24 offers opportunities in Europe as a future import market Südzucker exploits new market opportunities Systematic entry into new import markets and EU member states Romania and Bulgaria: Production and distribution businesses in Romania Formation of distribution and joint venture in Bulgaria Extension of market share in deficit regions Greece, Italy and Spain Balkans region: Raw sugar refinery in Bosnia (capacity 150,000 t p.a.) Emphasis on industrial sugar production Südzucker quota share - sugar marketing year 2008/09 Belgium 72 % 20 % France Germany 40 % 100 % Austria Italy Poland 25 % Czech Republic 25 % 100 % Hungary Moldova 39 % Slovakia 56 % Bosnia- Hercegowina 35 % Greece Romania Bulgaria Moldova: market share Südzucker Group June 2009, page 24

25 Cooperation with Mauritius strengthens distribution power Exclusive distributor of ~ 400,000 tonnes p.a. sugar contingent from Mauritius into the EU from 2009 to 2015 Imported sugar volume leverages European distribution platform supports core production regions supports targeted market share increase in future European deficit markets which are already partially addressed via jv agreements 400,000 tonnes sugar Future distribution power of Südzucker Group builds on approximately 4.5 million tonnes sugar (consisting of production of quota sugar, industrial sugar and refined sugar as well as imported sugar from Mauritius) Mauritius Südzucker Group June 2009, page 25

26 Segment Sugar: Development 2008/09 (I) (in mn ) 2008/ /08 Δ Revenues ,2% EBITDA ,0% EBITDA-Margin 7,7% 6,1% Operating profit > 100 % Operating Margin 4,1% 1,7% Restructuring and special items Income from operations (EBIT) > 100 % Investments ,1% Fixed Assets ,0% Financial Assets ,6% Capital Employed ,8% RoCE 5,0% 2,2% Südzucker Group June 2009, page 26

27 Segment Sugar: Development 2008/09 (II) Revenues (mn ) Burden from continued 4-step decline of factory margin and prices Reduced charges (inventory write-down of previous year) from the restructuring phase of the EU sugar market regulation ~ / / / / / / /10e Others (production levy new, higher energy costs, cost savings, etc) Operating profit (mn ) / /09 Südzucker Group June 2009, page 27

28 Segment Sugar: Quota renouncements Südzucker- Restructuring Accounting Quota aid Special items Cashflow k t mn Financial year Quota before renouncement st wave (until ) / /10 2nd wave (until ) / /10 Total Quota after renouncement Südzucker participated within European quota renouncement process with ~871,000 t, i.e. 21% of company specific quota Income stream from restructuring aid is shown in result from restructuring and special items in year of effective quota renouncement in amount of respective net present value Cash inflow of 446 mn effective in June 2009 Südzucker Group June 2009, page 28

29 Segment Sugar: Restructuring 2006/ /09 in light of quota renouncement of 21% (~871,000 t) (in mn ) Depreciation fixed assets Disposal sugar quotas (2nd wave) % 45% 305 (1st wave) ~142 (p.a.) Dismantling/ Earlyretirementmisation Opti- Restruct.- Recultivation cost beet logistic total Writedown fixed assets Disposal sugar quotas casheffective Socialplans 31% Income from restructuring amount 88 ~ 76 (by 09/10) (by 08/09) 47 (by 07/08) Sustainable cost savings p.a. (fully effective by 2010/11) Südzucker Group June 2009, page 29

30 Segment Sugar: Outlook 2009/10 Revenues Quota renouncement in spring 2008 and subsequent lower quota sugar production in campaign autumn 2008 lead to lower sugar sales Cooperation with Mauritius will start running mid of business year, increasing the European distribution power Overall leading to another reduction in revenues Operating Profit End of the restructuring phase in the EU sugar market and the elimination of the temporary charges associated with market regulation reforms (e.g. restructuring levy) Charges through further reduction of the factory margin have to be seen alongside further cost savings Another significant profit increase Südzucker Group June 2009, page 30

31 Agenda 1. Overview and strategic objectives page 3 2. Financial Highlights page 7 3. Annual Financial Statement 2008/09 page Development of Segments Sugar page 22 Special Products page 32 CropEnergies page 41 Fruit page Outlook page Appendix Long-term development of key figures page 54 Additional information page 58 Südzucker Group June 2009, page 31

32 * Segment Special Products: Development 2008/09 (I) * (in mn ) 2008/ /08 Δ Revenues ,2% EBITDA ,6% EBITDA-Margin 12,1% 12,8% Operating profit ,8% Operating Margin 7,6% 8,3% Restructuring and special items Income from operations (EBIT) ,6% Investments ,6% Fixed Assets ,8% Financial Assets Capital Employed ,7% RoCE 8,4% 8,8% * Adjusted for CropEnergies 2007/08 Südzucker Group June 2009, page 32

33 Segment Special Products: Development 2008/09 (II) Starch (incl. AGRANA bioethanol) Sales increase of starch products High raw material costs in H1 have been passed on to a large extend Low raw material costs in H2 Bioethanol: Start-up costs and high raw material costs CAGR: ~9 % Revenues (mn ) ~ / / / / /10e Others: Sales increase BENEO BENEO price increase compensates for higher costs Sales growth Freiberger Operating profit (mn ) / /09 Südzucker Group June 2009, page 33

34 Segment Special Products: Development 2008/09 (III) Most important changes in 2008/09 New segmental order since Q4 2008/09: CropEnergies as separate segment Combination of AGRANA bioethanol and starch business within division Starch as a part of the segment Special products Division Starch Opening Pischelsdorf plant (Austria) July 2008 Capacity: 240,000 m 3 bioethanol p.a. Strong market leader in Austria Mandatory blending rule Austria: 5.75 % since 2008 HUNGRANA plant (Hungary): Capacity extension Capacity: 187,000 m 3 bioethanol p.a. Capacity: 220,000 t isoglucose p.a. Largest European plant for production of isoglucose Starch* 39% Revenue split 2008/09 PortionPack 7% 1,427 mn BENEO (Functional Food) 22% Freiberger 32% Divsion PortionPack: Division Freiberger: Market entry into important Spanish gastronomy market via acquisition of SAES, Barcelona Acquisition of another pizza plant in Osterweddingen * incorporates AGRANA bioethanol and starch activities Südzucker Group June 2009, page 34

35 Special Products: Division BENEO at a glance BENEO Group bundles Functional Food-operations Worldwide unchanging growing demand for Functional Food ingredients in view of increasing competition BENEO-Orafti (prebiotic fibres from chicory roots): Double-digit growth rates with core products Inulin and Oligofructose BENEO-Palatinit (functional carbohydrates): Global leadership with Isomalt. Successful positioning of product innovations Palatinose and galeniq BENEO-Remy (rice starches): Double-digit growth; expansion of the factories in Italy and Belgium; challenging situation concerning the procurement of rice regulatory support nutritional science nutritional communication application technology ingredient processing process technology Ingredients from natural source passionate team food texturising consumer research Premium products Exploitation of growth potential of our core products world wide academic network specialty ingredient sales food marketing intelligence patent support marketing of health benefits Development of new markets via innovations Südzucker Group June 2009, page 35

36 Special Products: Division Starch* at a glance Well established player as manufacturer of specialty starches for the paper, textile, cosmetics, pharmaceutical and construction industries Principal focus on organic and GM-free starches for the food industry Niche strategy allows for differenciation against competition and leverages in-house research and development infrastructure Opening of bioethanol plant in Pischelsdorf (Austria) in July 2008 Upgrading of capacities in Hungary Focus VALUE Derivatives, Ethers and Esters Maltodextrins End Product Use for Textile / Construction / Cosmetic Industry for Food Industry (e.g. Baby Food) Isoglucose Glucose Syrups Commodities (Potato / Maize Starch) VOLUME for Food Industry (e.g. Soft Drinks) for Food Industry (e.g. Confectionery Products) for Foodstuffs, Paper, Textiles, Pharmaceuticals * incorporates AGRANA bioethanol and starch activities Südzucker Group June 2009, page 36

37 Special Products: Division Freiberger at a glance Freiberger produces and markets chilled and frozen pizzas as well as frozen pasta and baguettes Solutions are specifically geared toward the strategies of its business partners: retail industry, caterers and food service operators December 2008: Acquisition of further pizza production facility in Osterweddingen (Saxony-Anhalt) Unrivalled European market leader for own label/private lable frozen pizzas Westhoughton Berlin Osterweddingen Muggensturm Oberhofen Production facility Südzucker Group June 2009, page 37

38 Special Products: Division PortionPack Europe at a glance European market leader in individually packaged portions for the food and non-food sectors in Central Europe In addition to conventional sugar packets, product range includes a wide spectrum of other food portion packs such as baked-goods, chocolate and sandwich spreads Besides to the out-of-home market (retaurants, hotels, caterers) and food retailers, PortionPack Europe also services industry (contract packing) and the advertising/promotion sectors Oud-Beijerland (NL) Herentals (B) Bodegraven (NL) Landgraaf (NL) Prague Krakow December 2008: Expansion into Spain via acquisition of sugar portion pack manufacturer SAES, Barcelona Barcelona Production facility Südzucker Group June 2009, page 38

39 Segment Special Products: Outlook 2009/10 Revenues Continued sales increase within segment Starch with reduction in revenues due to price decrease as a result of decline in raw material prices Overall moderate increase expected Operating Profit High charges associated with commissioning of the Pischelsdorf bioethanol plant (2008/09) will not recur Volatile raw material and energy prices will have impact on all divisions Further increase in operating profit Südzucker Group June 2009, page 39

40 Agenda 1. Overview and strategic objectives page 3 2. Financial Highlights page 7 3. Annual Financial Statement 2008/09 page Development of Segments Sugar page 22 Special Products page 32 CropEnergies page 41 Fruit page Outlook page Appendix Long-term development of key figures page 54 Additional information page 58 Südzucker Group June 2009, page 40

41 Segment CropEnergies: Development 2008/09 (I) (in mn ) 2008/ /08 Δ Revenues ,8% EBITDA ,4% EBITDA-Margin 9,0% 17,2% Operating profit ,3% Operating Margin 5,7% 12,2% Restructuring and special items Income from operations (EBIT) ,6% Investments ,1% Fixed Assets ,7% Financial Assets Capital Employed ,1% RoCE 8,2% 10,0% Südzucker Group June 2009, page 41

42 Segment CropEnergies: Development 2008/09 (II) Revenues (mn ) Sales increase Capacity extension Zeitz Acquisition of Ryssen Alcools CAGR: 60% 319 > 400 Decline in ethanol prices Higher grain costs Start-up Biowanze Others / / / / /10e Operating profit (mn ) / /09 Südzucker Group June 2009, page 42

43 Segment CropEnergies: Development 2008/09 (III) One of the leading European biofuel producers Focussed on bioethanol only Biggest European plant (360,000 m 3 /year) Expansion program Increase of production capacities from 229,000 m³ (2006/07) to >700,000 m 3 (2009/10) Superior business model through superior systems engineering flexible input of various feedstock (e.g. wheat, corn, sugar thick juice) significant reduction of input costs via sale of byproducts as animal feed (ProtiGrain ) mainly operating own power stations feeding of excess-power into the public power grid logistical advantages (260) Zeitz Capacity upgrading (nominal) (in k m 3 ) 2005/ / (+100) Expansion Zeitz 2.7 (+100) Loon Plage 9.0 (+300) Installation Wanze 12.0 (>700) Demand and capacity projection EU * (Bioethanol in mn m 3 ) e 2020e Production Capacity (incl. in construction) Demand * demand calculated on basis of 5.75% (energy) on EU fuel demand (excl. diesel) for 2010 and 10% (energy) for 2020 / Capacity projection based on Südzucker Group June 2009, page 43

44 Segment CropEnergies: Outlook 2009/10 Revenues General framework: Financial crisis and low energy prices Utilization of extended capacity: increase in production above 600,000 m³ p.a. Positive impulse through market entry France and increase of European bioethanol demand Revenue increase above 400 mn Operating Profit Revenue increase, efficiency improvement and omission of start-up costs Wanze in the course of the year will lead to overall profit increase against previous year but in Q1 operating charges prevail Südzucker Group June 2009, page 44

45 Agenda 1. Overview and strategic objectives page 3 2. Financial Highlights page 7 3. Annual Financial Statement 2008/09 page Development of Segments Sugar page 22 Special Products page 32 CropEnergies page 41 Fruit page Outlook page Appendix Long-term development of key figures page 54 Additional information page 58 Südzucker Group June 2009, page 45

46 Segment Fruit: Development 2008/09 (I) (in mn ) 2008/ /08 Δ Revenues ,6% EBITDA ,7% EBITDA-Margin 4,0% 9,5% Operating profit Operating Margin neg. 5,1% Restructuring and special items Income from operations (EBIT) Investments ,6% Fixed Assets ,8% Financial Assets Capital Employed ,1% RoCE neg. 5,6% Südzucker Group June 2009, page 46

47 Segment Fruit: Development 2008/09 (II) Fruit preparations (share of revenues 80%) Decrease in sales in light of economic crisis and intensified competition Pass-through of significantly increase raw material costs Revenues (mn ) months > 800 Fruit juice concentrates (share of revenues 20%) Bad European apple harvest led to drastic increase in raw material costs for European apple juice concentrates in 2007 Dramatic price decline in early summer 2008 in light of expected normal harvest in autmn 2008 Revenues reduced below production cost of harvest 2007 Sale of harvest 2007 at a loss Comprehensive profitability improvement program initiated / / / / / / /10e Operating profit (mn ) Inventory write-down -5 apple juice 2007/08 concentrates other 2008/09 Südzucker Group June 2009, page 47

48 Segment Fruit: Outlook 2009/10 Revenues Division fruit preparations: Lower sales in light of economic crisis Division fruit juice concentrates: Increase in production and volume due to improvement in availability of raw material, but further pricing pressure Moderate increase in revenues Operating Profit Division fruit preparations: Burden through intensified competition and sluggish consumer spending as a result of the current economic environment Division fruit juice concentrates: Significant recovery due to omission of one-off inventory write- down of apple juice concentrates out of former harvest period Significant recovery in profits Südzucker Group June 2009, page 48

49 Agenda 1. Overview and strategic objectives page 3 2. Financial Highlights page 7 3. Annual Financial Statement 2008/09 page Development of Segments Sugar page 22 Special Products page 32 CropEnergies page 41 Fruit page Outlook page Appendix Long-term development of key figures page 54 Additional information page 58 Südzucker Group June 2009, page 49

50 Normalisation of seasonal NFD pattern from 2009/10-2,300-2,100 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY 2005/06 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10p mn -1,900-1,700-1,500-1,300-1,100-1,854-1,672-1,295-1,177-1,191-1,103-1,508-1,920-1,618-1,592-1,633-1, mn Cash in restructuring aid NFD End of Period NFD Year-ø (End of Period) ~ -1,100-1, mn * -551 mn * -363 mn * Three years with high payments to the EU restructuring fund led to temporary distortion of normal saisonal NFD pattern. From 2009/10 EU restructuring assistance will essentially contribute to a reduction in NFD and a seasonal normalisation. * Payments to restructuring fund (overall -1.5 bn ) Südzucker Group June 2009, page 50

51 Südzucker Group: Outlook 2009/10 Revenues Operating Profit Segment sugar with further decline due to lower sugar quota since sugar marketing year 2008/09 Continued dynamic growth of segment CropEnergies Moderate increase of special products and fruit segments Südzucker Group: On previous year level Sugar with further significant profit increase Special products shows increase CropEnergies above previous year level Fruit with significant profit recovery Südzucker Group: about 400 mn Investments Südzucker Group: about 250 mn (Fixed assets) Net Financial Debt Substantial reduction to ~ (1.6) bn mainly driven by cash inflow from EU restructuring assistance of 446 mn in June 2009 Südzucker Group June 2009, page 51

52 Executive summary Umsatz Milestones in 2007/08 and 2008/09 reached, despite heavy distortion in EU sugar market and outbreak of the financial and economic crisis End of EU sugar market restructuring phase increases visibility Completion of investment phase sets cornerstone for further growth thus significantly reducing need for investments in the upcoming years Strong reduction of net financial debt in 2009/10 mainly through receipt of EU restructuring assistance payment The defensive, non-cyclical business model in combination with a strong balance sheet, comfortable liquidity and sound maturity profile of capital market instruments, offers capital market access even now in times of the financial and economic crisis. Südzucker Group June 2009, page 52

53 Agenda 1. Overview and strategic objectives page 3 2. Financial Highlights page 7 3. Annual Financial Statement 2008/09 page Development of Segments Sugar page 22 Special Products page 32 CropEnergies page 41 Fruit page Outlook page Appendix Long-term development of key figures page 54 Additional information page 58 Südzucker Group June 2009, page 53

54 Südzucker Group: Long-term development of key figures Pre-Reform Transition period Actual Actual Actual Actual Actual Actual Outlook (in mn ) 2003/ / / / / / /10e Revenues ~ EBITDA EBITDA-Margin 14,8% 15,0% 12,6% 11,8% 8,5% 8,3% Operating profit ~ 400 Operating Margin 10,5% 10,8% 8,4% 7,3% 4,0% 4,4% Income from operations (EBIT) * Earnings before income taxes (EBT) Net earnings thereof to SZ AG shareholders Earnings per share ( ) 1,48 1,67 1,36-1,72 0,10 0,86 Dividend per share ( ) 0,50 0,55 0,55 0,55 0,40 0,40 Cashflow Investments total ~ 250 *** Capital Employed RoCE 11,7% 11,3% 8,6% 8,8% 4,7% 5,2% Total Assets Equity Equity Ratio 39,5% 38,1% 47,1% 42,4% 41,7% 41,9% Net Financial Debt (NFD) ** ~ Gearing (NFD/Equity) 42,2% 61,1% 31,5% 24,1% 45,7% 50,5% * Extraordinary impact from Goodwill impairment loss ** Does not include Cash inflow of 446 mn from EU which will be effective in June 2009 *** Capex (excluding investments in financial assets) Südzucker Group June 2009, page 54

55 Maturity Profile of capital markets instruments June % Bond 2000/2010, 300 mn February % Bond 2002/2012, 500 mn July 2012 Syndicated Loan, 600 mn, no covenants margin max. 35 bp, short-term borrowing facility 1 week < 1 year volume 2008/09 Q4: 270 mn April % German promissory note, 150 mn June 2015 Perpetual 5.25% Hybrid Bond 2005/2015, 700 mn perpetual; first issuer call right June 2015 Commercial Paper-Program, 600 mn volume 2008/09 Q4: 115 mn Südzucker Group June 2009, page 55

56 Balance Sheet Structure (in mn ) Intangible assets ,3% ,7% Property, plant, equipement ,3% ,1% Shares in associated companies 76 1,0% 64 0,8% Other investments and loans 23 0,3% 115 1,5% Securities 105 1,4% 20 0,2% Receivables and other assets 8 0,1% 304 3,8% Deferred tax assets 108 1,4% 60 0,8% Non-current assets ,8% ,8% Inventories ,9% ,0% Trade receivables and other assets ,9% ,2% Current tax receivables 33 0,4% 17 0,2% Securities 144 1,9% 158 2,0% Cash and cash equivalents 164 2,1% 217 2,7% Current assets ,2% ,2% Total assets ,0% ,0% (in mn ) Equity attributable to shareholders of SZ AG ,5% ,8% Hybrid capital 684 8,9% 684 8,6% Other minority interest 499 6,5% 575 7,3% Shareholder's equity ,9% ,7% Provisions for pensions and similar obligations 405 5,2% 402 5,1% Other provisions 201 2,6% 211 2,7% Non-current financial liabilities ,0% ,6% Other liabilities 15 0,2% 21 0,3% Deferred tax liabilities 165 2,1% 165 2,1% Non-current liabilities ,2% ,7% Other provisions 117 1,5% 182 2,3% Current financial liabilities ,6% 669 8,4% Trade and other payables ,4% ,7% Current tax liabilities 33 0,4% 19 0,2% Current liabilities ,9% ,7% Total liabilities and shareholders' equity ,0% ,0% Südzucker Group June 2009, page 56

57 Agenda 1. Overview and strategic objectives page 3 2. Financial Highlights page 7 3. Annual Financial Statement 2008/09 page Development of Segments Sugar page 22 Special Products page 32 CropEnergies page 41 Fruit page Outlook page Appendix Long-term development of key figures page 54 Additional information page 58 Südzucker Group June 2009, page 57

58 Revenues by region 2008/09 Approx. 93 % of revenues are generated within EU Neu facilities generate overproportinate growth in Central and Sout Eastern Europe Distribution into growth regions: Segment sugar: Distribution into deficit markets Italy, Greece and Spain Raw sugar refinery in Bosnia to serve the Balkans region Distribution partnership in Bulgaria and Rumania Segment special products: Start of bioethanol production in Pischelsdorf Hungary: Start of largest European plant for maize starches and isoglucose Segment CropEnergies: Start of bioethanol production in Belgium Delivery of region Amsterdam-Rotterdam-Antwerp Segment Fruit: New production line in Brazil Germany (32.1 %) EU 15 (46.4 %) Revenues 5,871 mn Rest of world (7.3 %) EU 12 (14.2 %) Südzucker Group June 2009, page 58

59 Segment Sugar: Key Figures (in mn ) 2008/ / /07 Revenues EBITDA EBITDA-Margin 7,7% 6,1% 11,6% Operating profit Operating Margin 4,1% 1,7% 7,3% Restructuring and special items Goodwill impairment loss Income from operations (EBIT) Investments Fixed Assets Financial Assets *) Capital Employed RoCE 5,0% 2,2% 9,6% Employees *) Excluding purchase of new sugar quota with a total volume of 162 mn (thereof 159 mn in 06/07, 3 mn in 07/08) Südzucker Group June 2009, page 59

60 Segment Sugar: Campaign SMY 2008/09 Beet growers: 47,800 (59,200) Beet acreage: 370,100 (438,500) ha Sugar factories (incl. refineries): 33 (41) Beet processing: 25.0 (28.2) mn tons Sugar production: 4.2 (4.6) mn tons thereof from beets: 3.9 (4.3) mn tons thereof raw sugar raffination: 0.3 (0.3) Mio. t Südzucker Group June 2009, page 60

61 FINANCIAL TRANSPARENCY Südzucker well positioned in Beet Belt Poland Germany Belgium Czech Republic Moldova Slovakia France Austria Hungary Südzucker Group June 2009, page 61 Romania

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

63 Development of EU quota renouncements (in mn t) Sluggish quota renouncements: Temporary withdrawal of 2 mn t EU incentive scheme works: As of March, 31st mn t of quota were renounced 4.2 As of January, 31st mn t of quota were renounced Final, uncompensated quota cut by EU for accomplishment of EU 6 mn t target 1.9 Overall target of 6 mn t already achieved to 90% in sugar marketing year 2008/09 and to more than 96% in SMY 2009/10 Quota renouncement to fund (accumulated) Temporary withdrawal / / / / /11e 1st and 2nd phase Sugar marketing year Südzucker Group June 2009, page 63

64 Segment Sugar: Adaptation of factory structures / / / / / / /10e Employees * Factories ** / / / / /10e 2010/11p Cost savings (mn ) * including reductions in the context of factory closures ** beet sugar factories and refineries Südzucker Group June 2009, page 64

65 Segment Sugar: Cost reduction measures (in mn ) Measures Cost Savings p.a. cash non cash Total fully effective Factory closures Austria: Hohenau /08 Slovakia: Sobota /10 Germany: Groß Gerau, Regensburg /11 Belgium: Brugelette; Hollogne France: Guignicourt Poland: Lubna, Chybie, Raciborz, Wroblin, Wroclaw, Otmuchow Hungary: Petöhaza Administration / others Renegotiation beet contracts /08 Optimisation beet freights /10 Reduction administration cost Reduction maintenance expense Centralisation administration Poland Early- / Partial retirement Partial retirement program Germany Early retirement program Belgium longterm Südzucker Group June 2009, page 65

66 Price development for raw and white sugar (NYMEX, LIFFE) Successful EU restructuring process leads EU into no.2 position as sugar importer behind Russia Additionally, India changed from an important export into an important import market On the one hand there is a global reduction in production of 5.6% to 157 mn t, on the other hand demand is growing about 1.5% to 161 mn t Decline of global sugar inventory level to 74 mn t or 46% of annual consumption leads to increase in world market prices Quotation for sugar in / ton White sugar contract No. 5 LIFFE London (Future contract Nov. 2009) Raw sugar contract No. 11 NYMEX New York (Future contract Nov. 2009) Südzucker Group June 2009, page 66

67 Segment Special Products: Key Figures * (in mn ) 2008/ / /07 Revenues EBITDA EBITDA-Margin 12,1% 12,8% 13,1% Operating profit Operating Margin 7,6% 8,3% 8,1% Restructuring and special items Goodwill impairment loss Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 8,4% 8,8% 8,1% Employees * Adjusted for CropEnergies 2007/08, 2006/07 Südzucker Group June 2009, page 67

68 Segment CropEnergies: Key Figures (in mn ) 2008/ / /07 Revenues EBITDA EBITDA-Margin 9.0% 17.2% 19.7% Operating profit Operating Margin 5.7% 12.2% 14.3% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 8.2% 10.0% 10.1% Employees Südzucker Group June 2009, page 68

69 Bioethanol: EU promotes potential EU mandatory blending: 5.75% (energy) until 2010 Manadatory blending of 5.75% within EU member states Germany: Biofuel quota law: increase of 5.25% (2009) to 6.25% (2010) Austria: 5.75% from 2008 Hungary: 4.4% from 2008 France: up to 7% until % (energy) until 2020 Manadatory blending of 10% renewable energy within transport sector Introduction of social and environmental standards: 35% greenhouse gas (GHG) - savings vs fossil fuels from % GHG-savings vs fossil fuels from 2017 GHG-savings potential * of bioethanol out of wheat and sugar beets 3x higher than Bioethanol out of sugar cane Bioethanol from 2nd generation * Study of IFEU-Institute Heidelberg; Adviser of the German Federal Government EU-Commission estimate Development of grain volumes Grain 2020e in mn t Production 317 Consumption 312 thereof Bioenergy 59 Share in % 19% Imports 11 Exports 17 Source: EU Commission EU-Commission expects for 2020 in case of 10%-mandatory blending a net grain production surplus Long-term incfluence of Bioethanol on grain price development seen as marginal Südzucker Group June 2009, page 69

70 Bioethanol: The alternative fuel Convenient handling, comparable to fossil fuel Liquid; using existing tanks and station infrastructure Easy filling under atmospheric pressure with existing security systems Established vehicle technology Up to 10% (low blends) no modifications required High blends (E85): FFV modifications cheap with cost of up to 400 /car Non toxic, non hazardous, environmental friendly, sustainable CO 2 Balance CO 2 neutral photosynthesis: energy plants absorb CO 2 (emmetting oxygen); when burned, oxygen is absorbed (emmetting CO 2 ) Each litre of Bioethanol saves kg CO 2 vs. Petrol (Source: LAB) Energy Balance Net energy balance 3.2 : 1 (efficiency CEAG factory Zeitz) (Source: CropEnergies) Net energy balance 2.1 : 1 (well to wheel) Net energy balance of petrol 0.8 : 1 (Source: Worldwatch) Südzucker Group June 2009, page 70

71 Price development of wheat and maize (MATIF, Paris) Strong demand of emerging countries 260 Decrease of global inventory levels 240 Hedge fund speculation 220 Generated hyperinflation in agricultural raw material beginning of Record harvest Heavy distortion in capital and raw material markets Massive price correction during / ton Wheat price MATIF (Future contract Aug. 2009) Price for maize MATIF (Future contract Aug. 2009) Südzucker Group June 2009, page 71

72 Segment Fruit: Key Figures (in mn ) 2008/ / /07 Revenues EBITDA EBITDA-Margin 4,0% 9,5% 9,7% Operating profit Operating Margin neg. 5,1% 5,0% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE neg. 5,6% 5,9% Employees Südzucker Group June 2009, page 72

73 Segment Fruit The only global producer Overview Division Fruit preparations: World market leader Customers: dairy, baking and ice cream industry Division Fruit juice concentrates: Leading European producer (market leader in apple juice concentrates) Core competences Upgrading of agricultural raw material into premium preliminary products for food industry Global sourcing and distribution of fruit ingredients Positioning & Strategy Shared customer base with segments/divisions sugar, BENEO and starch Accelerated organic growth Emphasis on expansion into attractive growth regions (e.g. Brazil, Russia, China) Growth drivers: Especially yogurt drinks rank among the fastest growing food products globally Increase in awareness for healthy food and growing per-capita income (emerging markets) Synergies / Production cost optimisation Revenues (mn ) 12 months AGRANA J&F Holding GmbH, Vienna AGRANA Fruit S.A. Paris > / / / / / / /10e Fruit preparations 80% of segment revenues ~35% world market share 25 facilities on the globe AGRANA Juice GmbH, Gleisdorf Fruit juice concentrates 20% of segment revenues ~14% European market share 10 facilities worldwide Südzucker Group June 2009, page 73

74 Segment Fruit: Production facilities Südzucker Group June 2009, page 74

75 Thank you for your attention Contact Investor Relations Nikolai Baltruschat Tel.: +49 (621) Disclaimer This presentation contains forward-looking statements that reflect managements current views with respect to future events. The forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made. Südzucker Group June 2009, page 75