Südzucker Group Thomas Kölbl (CFO) Interim Report Q1 FY 2013/14 Conference Call Presentation, July 11, 2013

Transcription

1 Südzucker Group Thomas Kölbl (CFO) Interim Report Q1 FY 2013/14 Conference Call Presentation, July 11, 2013

2 Agenda 1. Financial Highlights Q1 2013/14 page 3 2. Development of Segments page 6 3. Group income statement page Cash flow statement page Balance sheet page Outlook 2013/14 page Appendix page 23 Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 2

3 Group income statement 1 st quarter (mn ) 2013/ /13 +/- in % Revenues ,6 EBITDA ,0 EBITDA margin 13,8% 16,5% Depreciation ,3 Operating profit ,5 Operating margin 11,3% 13,9% Restructuring costs and special items 1 0 > 100 Income from operations ,3 Net earnings for the period attributable to Südzucker shareholders ,4 Earnings per share ( ) (undiluted) 0,64 1,17-45,3 Cash flow ,5 Investments in fixed assets* ,3 Net financial debt (as of reporting date) ,6 Average number of employees ,2 * Including intangible assets Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 3

4 Financial Highlights Q1 2013/14 Group revenues up 8 % to2,030 (1,887) million Operating profit decreased 12 % to 230 (263) million Cash flow reached 243 (252) million Earnings per share decreased to0.64 (1.17 ; 0.77 excl. prior year one-off positive tax effect of 0.40 ) Net financial debt significantly decreased by 582 million to 641 (1,223) million Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 4

5 Agenda 1. Financial Highlights Q1 2013/14 page 3 2. Development of Segments page 6 3. Group income statement page Cash flow statement page Balance sheet page Outlook 2013/14 page Appendix page 23 Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 5

6 Segment Sugar: Development Q1 2013/14 1 st quarter (mn ) 2013/ /13 +/- in % Revenues ,9 EBITDA ,5 EBITDA margin 16,6% 20,7% Depreciation ,5 Operating profit ,5 Operating margin 15,2% 19,3% Revenues: Operating profit: The increase was driven especially by higher quota sugar volumes. As expected operating profit significantly below last year's high level. The decline was mostly the result of the again higher commodity prices during the 2012 campaign, and the shorter campaign due to the lower harvest yield in Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 6

7 Segment Special Products: Development Q1 2013/14 1 st quarter (mn ) 2013/ /13 +/- in % Revenues ,7 EBITDA ,3 EBITDA margin 10,3% 13,7% Depreciation ,5 Operating profit ,8 Operating margin 6,5% 9,3% Revenues: Operating profit: Segment was again able to increase revenues primarily driven by higher volumes and sales revenues from the starch division's animal feed products. Operating profitasexpectedbelowthe previous year quarter's strong results, mainly due to higher commodity costs compared to last year, many of which the segment was unable to pass on to the market. Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 7

8 Segment CropEnergies: Development Q1 2013/14 1 st quarter (mn ) 2013/ /13 +/- in % Revenues ,8 EBITDA ,5 EBITDA margin 13,8% 14,9% Depreciation ,3 Operating profit ,7 Operating margin 9,1% 9,7% Revenues: Operating profit: Increasedriven by higher sales revenues from ethanol, food and animal feed. Ethanol production and volumes rose slightly. Operatingprofit slightly above previous year s level. Raw material prices rose again and offset most of the higher sales revenues from ethanol, food and animal feed. Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 8

9 Segment Fruit: Development Q1 2013/14 1 st quarter (mn ) 2013/ /13 +/- in % Revenues ,2 EBITDA ,0 EBITDA margin 10,1% 7,3% Depreciation ,0 Operating profit ,9 Operating margin 7,4% 4,5% Revenues: Operating profit: Significantincreasewas driven by higher volumes, among other things because the YBBSTALER companies were not fully consolidated under AUSTRIA JUICE GmbH until the second quarter of last year. Operating profitalmostdoubled, driven by strong volume growth for fruit preparations in the regions outside Central Europe, as well as significantly higher volumes for fruit juice concentrates. Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 9

10 Agenda 1. Financial Highlights Q1 2013/14 page 3 2. Development of Segments page 6 3. Group income statement page Cash flow statement page Balance sheet page Outlook 2013/14 page Appendix page 23 Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 10

11 Income statement (I) 1 st quarter (mn ) 2013/ /13 +/- in % Revenues ,6 Operating profit ,5 Restructuring costs and special items 1 0 > 100 Income from operations ,3 Income from companies consolidated at equity 4 1 > 100 Financial result ,3 Earnings before income taxes ,8 Income from companies consolidated at equity: Includes the company's share of earnings from a joint-venture distributor and the earnings contribution from ED&F Man since the second quarter of 2012/13. Financial result: Financial resultimprovedby11 million. Interest expensesdeclinedsharplyby7 million. Other interestexpensesimprovedby5 million andsimilarto last year at thesame time, was significantlyimpactedbylossesresultingfromeurofinancingof Eastern European subsidiaries. Following the redemption of the 2009/2016 convertible bond in fiscal year 2012/13, thereisnooptionpremiumexpensein the currentyear. Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 11

12 Income statement (II) 1 st quarter (mn ) 2013/ /13 +/- in % Earnings before income taxes ,8 Taxes on income Net earnings for the year ,0 of which attributable to Südzucker AG shareholders ,4 of which attributable to hybrid capital 7 7 0,0 of which attributable to minority interests ,0 Earnings per share ( ) 0,64 1,17-45,3 Taxeson income: Tax rate 24%. Without the one-time positive tax effect in Q1 2012/13, the comparable tax rate in the prior year was 21%. Minority interests: The co-owners of AGRANA and CropEnergies Groups account for most of the other minority interests share of the net earnings. Earningsper share: EPS decreasedto0.64, excl. Q1 one-off positive tax effect prioryears EPS was Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 12

13 Agenda 1. Financial Highlights Q1 2013/14 page 3 2. Development of Segments page 6 3. Group income statement page Cash flow statement page Balance sheet page Outlook 2013/14 page Appendix page 23 Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 13

14 Cash flow statement 1 st quarter (mn ) 2013/ /13 +/- in % Cash flow ,5 Increase (-)/ Decrease (+) in working capital ,3 Investments in fixed assets Sugar segment ,9 Special products segment ,7 CropEnergies segment ,4 Fruit segment 6 6-1,8 Total investments in fixed assets ,3 Investments in financial assets/acquisitions ,9 Capital increase/decrease ,0 Dividends paid ,0 Cash flow: Investments: Cash flowis almost the same as last year. The one-time tax income contained in the net income in the first quarter of 2012/13 had no impact on cash flow and the item was thus adjusted by this amount. The sugar segment's investments and the special products segment s investments were allocated for replacements, projects to improve energy efficiency and the wheat starch facility in Pischelsdorf, Austria. The CropEnergiessegment invested to further optimize its production systems. The fruit segment invested mainly in the fruit preparations area. Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 14

15 Agenda 1. Financial Highlights Q1 2013/14 page 3 2. Development of Segments page 6 3. Group income statement page Cash flow statement page Balance sheet page Outlook 2013/14 page Appendix page 23 Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 15

16 Balance sheet (mn ) /- in % Assets Non-current assets ,8 Current assets ,7 Total assets ,3 Liabilities and shareholders' equity Shareholders' equity ,7 Non-current liabilities ,9 Current liabilities ,7 Total liabilities and shareholders' equity ,3 Net financial debt ,6 Equity ratio 57% 53% Net financial debt in percent of equity (gearing) 13% 29% Increase in current assets: The increase in current assets of 505 million is largely due to the volume and price-driven increase of 238 million in inventories and an increase in cash and cash equivalents and securities. Increase in equity capital: Shareholders' equity rose 696 million; despite higher total assets, the equity ratio was higher than last year at 57 (53) %. The increase is in part due to the cash inflow from capital increases related to the redemption of the 2009/2016 convertible bond in November The higher shareholders' equity also reflects the positive earnings development. Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 16

17 Agenda 1. Financial Highlights Q1 2013/14 page 3 2. Development of Segments page 6 3. Group income statement page Cash flow statement page Balance sheet page Outlook 2013/14 page Appendix page 23 Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 17

18 Outlook 2013/14 (I): Ongoing high profit level Operating profit(mn ) ~ / / / / / / / / / /14e Pre-reform Transition period into new EU-sugar policy Post-transition period Normalisation 2004/05 as peak-yearin pre-reform era Restructuring charges Market consolidation Price pressure/ volume surplus Market recovery Low cost base following restructuring phase Increase in world market price Confirmation of high level sequent to transition period Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 18

19 Outlook 2013/14 (II) Revenues 2012/ /14e Operating Profit 2012/ /14e Sugar 4.2 bn 710 mn Special Products 1.9 bn 132 mn CropEnergies 645 mn 87 mn mn Fruit 1.1 bn 45 mn Group 7.9 bn ~ 8.0 bn 974 mn ~ 825 mn Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 19

20 Outlook 2013/14 (III) 2012/ /14e 212/13e EBITDA 1,248 mn ~ 1,100 mn Investments Fixed Assets Investments Finan. Assets Net Financial Debt 338 mn 183 mn 464 mn * ~ 450 mn ~ mn - RoCE 16.4 % > 12 % *contain ED&F Man participation of 181 million Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 20

21 Summary Umsatz Financial Year 2012/13 Targets achieved again RoCEabove16% (13%) Further improvement in balance sheet and financing structure Significant increase in dividend from 70 to 90 eurocent/share Financial Year 2013/14 Stable revenues and lower earnings following record year RoCE> 12 % Further reduction of net financial debt Increase in flexibility based on E 25%-participation in ED&F Man Commissioning of wheat starch factory at current bioethanol site in Pischelsdorf, Austria Enlargementof sitein Zeitz with newstarchfactoryandneutral alcohol factory Enforcementof marketpresencein USA with newfruit preparation factory Very solid investment grade rating OngoinghighEBITDA andcash flowlevel Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 21

22 Agenda 1. Financial Highlights Q1 2013/14 page 3 2. Development of Segments page 6 3. Group income statement page Cash flow statement page Balance sheet page Outlook 2013/14 page Appendix page 23 Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 22

23 Segment Sugar 1 st quarter (mn ) 2013/ /13 +/- in % Gross revenues 1.108, ,4 4,1 Consolidation -61,3-66,5-7,8 Revenues 1.047,1 997,9 4,9 EBITDA 174,1 206,1-15,5 EBITDA margin 16,6% 20,7% Depreciation -15,1-13,3 13,5 Operating profit 159,0 192,8-17,5 Operating margin 15,2% 19,3% Restructuring costs and special items -0,3-0,1 > 100 Income from operations 158,7 192,8-17,7 Investments in fixed assets* 34,4 31,3 9,9 Investments in financial assets/acquisitions 0,2 180,5-99,9 Total investments 34,6 211,8-83,7 Capital employed 3.500, ,8 3,2 Average number of employees ,7 * Including intangible assets Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 23

24 Segment Special Products 1 st quarter (mn ) 2013/ /13 +/- in % Gross revenues 499,5 469,0 6,5 Consolidation -12,9-8,7 48,3 Revenues 486,6 460,3 5,7 EBITDA 50,2 63,0-20,3 EBITDA margin 10,3% 13,7% Depreciation -18,8-20,1-6,5 Operating profit 31,4 42,9-26,8 Operating margin 6,5% 9,3% Restructuring costs and special items 1,0 0,3 > 100 Income from operations 32,4 43,1-24,8 Investments in fixed assets* 22,3 16,8 32,7 Investments in financial assets/acquisitions 0,0 0,0 - Total investments 22,3 16,8 32,7 Capital employed 1.397, ,3 1,2 Average number of employees ,0 * Including intangible assets Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 24

25 Segment CropEnergies 1 st quarter (mn ) 2013/ /13 +/- in % Gross revenues 186,0 160,5 15,9 Consolidation -15,0-7,6 97,4 Revenues 171,0 152,9 11,8 EBITDA 23,6 22,8 3,5 EBITDA margin 13,8% 14,9% Depreciation -8,0-7,9 1,3 Operating profit 15,6 14,9 4,7 Operating margin 9,1% 9,7% Restructuring costs and special items 0,0 0,0 - Income from operations 15,6 14,9 4,7 Investments in fixed assets* 2,8 4,7-40,4 Investments in financial assets/acquisitions 0,0 0,0 - Total investments 2,8 4,7-40,4 Capital employed 481,9 498,2-3,3 Average number of employees ,8 * Including intangible assets Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 25

26 Segment Fruit 1 st quarter (mn ) 2013/ /13 +/- in % Gross revenues 325,7 275,9 18,1 Consolidation -0,1-0,4-75,0 Revenues 325,6 275,5 18,2 EBITDA 32,8 20,0 64,0 EBITDA margin 10,1% 7,3% Depreciation -8,7-7,7 13,0 Operating profit 24,1 12,3 95,9 Operating margin 7,4% 4,5% Restructuring costs and special items 0,0 0,0 - Income from operations 24,1 12,3 95,9 Investments in fixed assets* 5,5 5,6-1,8 Investments in financial assets/acquisitions 0,0 0,0 - Total investments 5,5 5,6-1,8 Capital employed 880,6 822,2 7,1 Average number of employees ,7 * Including intangible assets Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 26

27 Liquidity profile end of period (mn ) Q1 2013/14 Q4 2012/13 Q3 2012/13 Q2 2012/13 Q1 2012/13 Net financial debt Cash & cash equivalents / securities Gross financial debt Long-term financial debt Short-term financial debt Bank credit lines: undrawn Syndicated loan facility undrawn Syndicated loan facility Agrana undrawn Commercial paper program undrawn Bank credit lines (undrawn) Cash & cash equivalents / securities Syndicated loan (undrawn) Commercial paper (undrawn) = Total liquidity reserves Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 27

28 Financing maturity profile* (mn ) as of May 31, EUR-Bond Hybrid (Issuer Call June 2015) Promissory Note mn Commercial Paper Programm (perpetual) Convertible Bond 600 mn Südzucker RCF 2011/2016 (back-up facility) 450 mn AgranaRCF 2012/2015 * Displayed to2019; 10-year trancheof Agranapromissory notein theamountof 7 mn due in 2022; Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 28

29 Financing maturity profile (II) (as of May 31, 2013) April 2014 June 2015 December 2015 June 2016 April 2017/19/ % Südzucker promissory note, 45 mn 5.25% Hybrid Bond 2005/perpetual, 700 mn Issuercall June 2015 attheearliestaccordingtocallconditions 6 (6) of bond documentation Syndicated loan AGRANA, 450 mn, financial covenants: NFD/EBITDA, equity-ratio Margin 90 bp, short-term borrowing facility 1-6 months Syndicated loan, 600 Mio., no financial covenants Margin 50 bpat Baa1/BBB+, short-termborrowing facility 1 week < 1 year Agrana promissory note, 110 mn March 2018 Perpetual 4.125% Bond 2011/2018, 400 mn Commercial Paper-Program, perpetual, 600 mn Drawnlines 2013/14 Q1: 120 mn Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 29

30 Financial calender Annual general meeting for fiscal 2012/13 August 1, 2013 Q2 1 st half year report 2013/14 October 10, 2013 Q3 3 rd quarter report 2013/14 January 13, 2014 Press and analysts conference fiscal 2013/14 May 15, 2014 Q1 1 st quarter report 2014/15 July 10, 2014 Annual general meeting for fiscal 2013/14 July 17, 2014 Contact Head of Investor Relations Nikolai Baltruschat Tel.: +49 (621) investor.relations@suedzucker.de Disclaimer This presentation contains forward looking statements based on assumptions and estimates made by the executive board of Südzucker AG. Although the executive board may be convinced that these assumptions and estimates are reasonable the future actual developments and future actual results may vary considerably from the assumptions and estimates due to many external and internal factors. For example, matters to be mentioned in this connection include negotiations relating to the world trade agreement (WTA), changes to the overall economic situation, changes to EU sugar policies, consumer behaviorand state food and energy policies. Südzucker AG assumes no responsibility and accepts no liability for future developments and future actual results achieved being the same as the assumptions and estimates included in this presentation. This presentation includes percentage and number rounding. Südzucker Group Conference Call Presentation Q1 2013/14, Thomas Kölbl (CFO), page 30