Südzucker Group Nikolai Baltruschat (Head of Investor Relations) Deutsche Bank 9 th German Corporate Conference Tokyo, August 27-28, 2012

Transcription

1 Südzucker Group Nikolai Baltruschat (Head of Investor Relations) Deutsche Bank 9 th German Corporate Conference Tokyo, August 27-28, 2012

2 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 15 CropEnergies page 23 Fruit page Financial Highlights Q1 2012/13 page Outlook 2012/13 page Appendix Annual Financial Statement 2011/12 page 51 Long-term development and key figures page 68 Additional information page 73 Südzucker Group, page 2

3 Südzucker Group at a glance Global operating German food group with long-standing corporate history: 1837: Foundation of first sugar company 1926: Foundation of Süddeutsche Zucker-AG Production facilities: ~ 100 Employees: ~ Beneficiary of mega trends within food, animal feed and energy area Operating profit: 751 mn Stock exchange listing in Germany Market capitalisation > 5 bn Free float 34% MDAX-member Trading volume: ~ 1 mn shares/day CropEnergies (8%) Revenues 7.0 bn Sugar (53%) Special products (26%) Fruit (13%) Südzucker Group, page 3

4 Südzucker Group: Market Position and Strategic Objectives Segment/Division Market Position Strategy / Main Drivers Sugar BENEO Freiberger Starch PortionPack CropEnergies Fruit Preparations Fruit Juice Concentrates #1 in Europe #1 worldwide in Isomalt and Oligofructose #1 in Europe in frozen Pizza (private label) #1 in Europe in portion packs One of the leading players in Europe #1 worldwide #1 in Europe Further enhancement of leading market position in Europe; especially in deficit markets Expedite internationalization; partnership with ED&F Man Leverage strength of core products into product innovations Further internal and external growth Focus on specialty starches Development of product portfolio and regions Full exploitation of implemented capacity build-up Consolidation of the leading position Assessment of new production and regions 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 Merger with Ybbstaler to enhance growth and profitability Südzucker Group, page 4

5 Megatrends confirm longterm Südzucker strategy population growth worldwide per capita income in in USD Source: United Nations population worldwide Source: ERS International Macroeconomic Data Set emerging markets worldwide 100 oil consumption / crude oil price global animal feed production barrel / day USD / barrel in mn t Source: BP oil consumption (worldwide) crude oil price Source: USDA animal feed production Südzucker Group, page 5

6 Return on Capital Employed (RoCE) 2007/ / / / / /13e Sugar 2.2% 5.0% 7.5% 10.4% 17.1% Segments Special Prod. CropEnergies 8.8% 10.0% 8.4% 8.2% 10.5% 2.3% 10.8% 8.7% 10.7% 10.2% Fruit 5.6% neg. 5.5% 6.7% 4.7% RoCE 4.7% 5.2% 7.5% 9.8% 13.2% Group Operating Profit 233 mn 258 mn 403 mn 521 mn 751 mn Capital Employed 5,005 mn 4,923 mn 5,374 mn 5,314 mn 5,707 mn Südzucker Group, page 6

7 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 15 CropEnergies page 23 Fruit page Financial Highlights Q1 2012/13 page Outlook 2012/13 page Appendix Annual Financial Statement 2011/12 page 51 Long-term development and key figures page 68 Additional information page 73 Südzucker Group, page 7

8 Segment Sugar (mn ) 2011/ / / /09 Revenues EBITDA EBITDA-Margin 16,8% 12,2% 10,5% 7,7% Operating profit Operating Margin 13,7% 8,7% 6,9% 4,1% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 17,1% 10,4% 7,5% 5,0% Südzucker Group, page 8

9 EU sugar market* - supply and demand World Market EU Production EU Demand World Market Quota sugar ~16-17 mn t CAGR 2-3% Demand** 165 mn t ~13 mn t o/w SZ 3.2 mn t 3-4 mn t o/w SZ: Mauritius ~0.4 mn t Raw sugar imports for raffination through SZ ~0.3 mn t Production** 178 mn t o/w SZ ~25% up to 0.4 mn t max. ~1.4 mn t ~3-4 mn t ~2-3 mn t Non-quota sugar *Simplified, excl. isoglucose **F.O. Licht estimate for 2011/12, July 2012 Südzucker Group, page 9

10 Mauritius cooperation strengthens distribution power in the EU Exclusive distributor of ~ 400,000 tonnes p.a. sugar contingent from Mauritius into the EU until 2015 Imported sugar volume leverages European distribution platform supports core regions supports market position in European deficit markets 400,000 tonnes sugar 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, page 10

11 Participation in ED&F Man at a glance Key Figures 2010/11* Transaction overview Total sales 14.5 mn t Revenues 10 bn USD Profit from ordinary activities 192 mn USD Net Profit 76 mn USD Equity 683 mn USD Private, employee owned company Purchase 25% - 1 share via capital increase Purchase price 255 mn USD At equity accounting Pro rata earnings contribution in 2012/13 - closing May 22, 2012 *Financial Year ended Südzucker Group, page 11

12 Participation in ED&F Man offers a global footprint Private, employee owned company Long-standing corporate history: founded 1783 > 3,400 employees in 60 countries Headquarter: London Operations: Sugar: 8.8 mn t trading volume with signifivant presence in Central and South America, Far East, South East Asia and Africa Participations in production and refining capacities amongst others in Russia, the Ukraine, Mexico,Chile and Venezuela Marketing of coffee and molasses Trading in biofuels, edible oils as well as shipping and financial services Südzucker Group, page 12

13 Segment Sugar: Outlook 2012/13 Revenues Higher non-quota sugar volume in light of strong campaign 2011 Possibility to market non-quota sugar of campaign 2011 in EU food market again Significant increase in revenues Operating Profit Stable EU price environment under precondition of ongoing balanced market and high world market prices Besides stable quota sugar business increase in non-quota sugar volume in light of strong campaign 2011 Significant increase in operating profit Südzucker Group, page 13

14 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 15 CropEnergies page 23 Fruit page Financial Highlights Q1 2012/13 page Outlook 2012/13 page Appendix Annual Financial Statement 2011/12 page 51 Long-term development and key figures page 68 Additional information page 73 Südzucker Group, page 14

15 Segment Special Products (mn ) 2011/ / / /09 Revenues EBITDA EBITDA-Margin 12,8% 13,8% 14,9% 12,1% Operating profit Operating Margin 8,3% 9,1% 9,8% 7,6% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,7% 10,8% 10,5% 8,4% Südzucker Group, page 15

16 Segment Special Products BENEO: World market leader with premium food ingredients like Isomalt, Inulin, Oligofructose or rice starch Freiberger: Private-label chilled and deep frozen convenience food (Pizza, Pasta, Baguettes) Starch: Starch, starch niche products for food and non-food industry, isoglucose and AGRANA bioethanol activities PortionPack: Various portioned products; wide range of products of food and non-food articles Revenues (mn ) CAGR 2006/ /12: ~9 % 1,161 Starch* 42% 1,283 1,427 Revenue split 2011/12 PortionPack 8% 1,806 mn 1,396 1,575 Freiberger 29% BENEO (Functional Food) 21% * incorporates AGRANA bioethanol and starch activities 1, / / / / / /12 Südzucker Group, page 16

17 Segment Special Products: Division BENEO BENEO Group bundles Functional Food-operations Worldwide unchanging growing demand for Functional Food ingredients in view of increasing competition Increase in awareness for healthy food and growing percapita income (emerging markets) Market leadership in main product categories BENEO-Orafti (prebiotic fibres from chicory roots): Core products Inulin and Oligofructose; distribution of CropEnergies by-product BeneoPro W BENEO-Palatinit (functional carbohydrates): Global leadership with Isomalt. Successful positioning of product innovations Palatinose and galeniq BENEO-Remy (rice starches): e.g. rice starches, rice flours, rice bran, rice concentrates, Sales Offices Regional Centers Production facility Exploitation of growth potential of our core products Development of new markets via innovations Offstein Südzucker Group, page 17

18 Segment Special Products: Division Starch* 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 New starch factory for production of wheat starch and gluten at the site of bioethanol plant in Pischelsdorf. Investment 65 mn (until 2013). Operations to start at the end of Aschach Gmünd Pischelsdorf Szabadegyhaza Tandarei Production facility Pischelsdorf * incorporates AGRANA bioethanol and starch activities Südzucker Group, page 18

19 Segment Special Products: Division Freiberger 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 Unrivalled European market leader for own label/private lable frozen pizzas Successful reconception of site in Westhoughton, UK Distribution center USA Westhoughton Berlin Osterweddingen Production facility Muggensturm Oberhofen Muggensturm Südzucker Group, page 19

20 Segment Special Products: Division PortionPack Europe 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 (restaurants, hotels, caterers) and food retailers, PortionPack Europe also services industry (contract packing) and the advertising/promotion sectors Telford Oud-Beijerland (NL) Herentals (B) Bodegraven (NL) Landgraaf (NL) Prague Barcelona Production facility Prague Südzucker Group, page 20

21 Segment Special Products: Outlook 2012/13 Revenues Division starch with slightly lower revenue contribution, all other divisions with revenue increase Moderate increase in revenues Operating Profit Volume increase at divisions Freiberger, Beneo and PortionPack to partially compensate for realized raw material price increase. Following an exceptional strong year and despite good start into 2012/13, division starch expected with lower earnings contribution Operating profit on prior year s level Südzucker Group, page 21

22 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 15 CropEnergies page 23 Fruit page Financial Highlights Q1 2012/13 page Outlook 2012/13 page Appendix Annual Financial Statement 2011/12 page 51 Long-term development and key figures page 68 Additional information page 73 Südzucker Group, page 22

23 Segment CropEnergies (mn ) 2011/ / / /09 Revenues EBITDA EBITDA-Margin 15,9% 17,5% 9,2% 9,0% Operating profit Operating Margin 10,0% 10,5% 3,3% 5,7% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,2% 8,7% 2,3% 8,2% Südzucker Group, page 23

24 Segment CropEnergies: at a glance (I) One of the leading producers in the European bioethanol market and the largest bioethanol producer in Germany and Belgium Focus on bioethanol and food and animal feed products from the bioethanol production Production capacity > 700,000 m³ of bioethanol per year > 500,000 t of food and animal feed products per year 100,000 t of liquefied CO 2 per year Efficient production and logistic network Production sites in Zeitz, Wanze, and Loon-Plage Tank storage in Duisburg and Rotterdam Trading offices in Brazil and the USA million m 3 EU consumption of Fuel Ethanol France Germany Italy Poland Spain Sweden UK Others Source: Evaluation of EU member states national action plans Revenues (mn ) CAGR 2007/ /12: ~31 % / / / / /12 Südzucker Group, page 24

25 Segment CropEnergies: at a glance (II) Production 2011/12: Bioethanol: 692,000 m 3 (+1%) Dried food and animal feed: 328,000 t (+8%) Sales 2011/12: Bioethanol: 700,000 m 3 (-1%) Dried food and animal feed: 332,000 t (+11%) Increase in E85 sales by 46% in 2011/12 Gluten is marketed in the food sector Higher revenues for ProtiGrain and ProtiWanze Production facilities: 760,000 m 3 Zeitz Wanze Loon-Plage 360,000 m 3 300,000 m 3 100,000 m 3 Loon-Plage Rotterdam Wanze Production facility Duisburg Zeitz Tank storage Südzucker Group, page 25

26 Segment CropEnergies: Outlook 2012/13 Revenues Higher production and sales volume of bioethanol Further increase in revenues Operating Profit Despite higher raw material costs, earnings to tie with prior year s record level Operating profit of more than 50 mn expected Südzucker Group, page 26

27 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 15 CropEnergies page 23 Fruit page Financial Highlights Q1 2012/13 page Outlook 2012/13 page Appendix Annual Financial Statement 2011/12 page 51 Long-term development and key figures page 68 Additional information page 73 Südzucker Group, page 27

28 Segment Fruit (mn ) 2011/ / / /09 Revenues EBITDA EBITDA-Margin 7,9% 9,4% 8,9% 4,0% Operating profit Operating Margin 4,1% 5,4% 4,4% neg. Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 4,7% 6,7% 5,5% neg. Südzucker Group, page 28

29 Segment Fruit with leading positions in both divisions 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 Production facility 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) Further growth via fruit juice concentrates merger AGRANA Fruit S.A.S. Fruit preparations ~70% of segment revenues ⅓ of world market 27 facilities worldwide AGRANA J&F Holding GmbH YBBSTALER AGRANA JUICE GmbH Fruit juice concentrates ~30% of segment revenues European market leader 14 facilities worldwide Südzucker Group, page 29

30 Joint venture Ybbstaler Agrana Juice GmbH at a glance Key data Transaction overview Production and distribution of fruit juice concentrates 14 production facilities Cumulative revenues approx. 350 mn p.a. Leading European market position AGRANA participated in JV with 50,01 % Fully consolidated by AGRANA Pro rata earnings contribution in 2012/13 - closing June 1, 2012 Improved coverage of raw material areas with production facilities Balance between own production and merchandise Südzucker Group, page 30

31 Segment Fruit: Outlook 2012/13 Revenues Revenue increase in division fruit preparations as well as in division fruit juice concentrates Increase in revenues Operating Profit In comparison to prior quarters, positive development in Q1 2012/13 Throughout 2012/13 continued positive trend expected against significant earnings deterioration in prior year Further recovery in fruit preparation volumes expected Improvement in operating profit Südzucker Group, page 31

32 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 15 CropEnergies page 23 Fruit page Financial Highlights Q1 2012/13 page Outlook 2012/13 page Appendix Annual Financial Statement 2011/12 page 51 Long-term development and key figures page 68 Additional information page 73 Südzucker Group, page 32

33 Group income statement 1 st quarter (mn ) 2012/ /12 +/- in % Revenues ,1 EBITDA ,8 EBITDA margin 16,5% 14,1% Depreciation ,4 Operating profit ,0 Operating margin 13,9% 11,2% Restructuring costs and special items ,3 Income from operations ,8 Net earnings for the period attributable to Südzucker shareholders > 100 Earnings per share ( ) (undiluted) 1,17 0,48 > 100 Cash flow ,0 Investments in fixed assets ,4 Net financial debt (as of reporting date) ,3 Average number of employees ,1 Südzucker Group, page 33

34 Financial Highlights Q1 2012/13 Group revenues up 15 % to 1,887 (1,639) million Operating profit increased 43 % to 263 (184) million Cash flow up 32 % to 252 (191) million Earnings per share rises to 1.17 (0.48) (incl. one-off positive tax effect of 0.40 ) Net financial debt increased by 291 million to 1,223 (932) million Closing of 25 % minus 1 share participation in ED&F Man Q1 group revenues and group operating profit reported on 25 June 2012 Südzucker Group, page 34

35 Segment Sugar: Development Q1 2012/13 1 st quarter (mn ) 2012/ /12 +/- in % Revenues ,5 EBITDA ,8 EBITDA margin 20,7% 15,0% Depreciation ,9 Operating profit ,2 Operating margin 19,3% 13,4% Revenues: Operating profit: Others: The increase was driven mainly by higher sugar sales revenues resulting from higher world market prices. The improved harvest in 2011 and the available export quotas also led to more exports. Mainly driven by higher sugar revenues. Commodity costs were also up sharply. While last year only the price level in Eastern Europe tracked world market prices on account of the terms of various contracts, in fall of 2011 revenues in Western Europe began to catch up. Closing of 25 % minus 1 share participation in ED&F Man Südzucker Group, page 35

36 Segment Special Products: Development Q1 2012/13 1 st quarter (mn ) 2012/ /12 +/- in % Revenues ,3 EBITDA ,3 EBITDA margin 13,7% 13,0% Depreciation ,8 Operating profit ,1 Operating margin 9,3% 8,8% Revenues: The higher revenues in Q1 were mainly the result of higher sales revenues accompanied by a steady volume development. Operating profit: The operating profit development in Q1 exceeded our expectations. The starch division's operating profit was higher than last year, driven by higher prices for sweeteners and isoglucose. Together, the BENEO, Freiberger and PortionPack divisions also contributed to the higher profits. The divisions were able to pass on higher commodity costs to the market by raising prices. Südzucker Group, page 36

37 Segment CropEnergies: Development Q1 2012/13 1 st quarter (mn ) 2012/ /12 +/- in % Revenues ,7 EBITDA ,9 EBITDA margin 14,9% 18,6% Depreciation ,3 Operating profit ,6 Operating margin 9,7% 12,4% Revenues: Operating profit: Strong increase in revenues is mainly due to higher bioethanol volumes. Confirmation of prior year s earnings level. The negative impact of higher commodity prices was offset by improved capacity utilization and the associated volume growth. Südzucker Group, page 37

38 Segment Fruit: Development Q1 2012/13 1 st quarter (mn ) 2012/ /12 +/- in % Revenues ,0 EBITDA ,9 EBITDA margin 7,3% 10,7% Depreciation ,3 Operating profit ,1 Operating margin 4,5% 7,4% Revenues: Operating profit: The strong increase in revenues was driven by higher volumes and higher sales revenues. The fruit segment was able to reverse the trend of the past few quarters. Despite an increase in earnings against prior quarters performance, higher volume and sales revenues were not enough to offset sharply higher costs. Therefore, operating profit was not able to match the high level of Q1 2011/12. Others: Closing of Ybbstaler transaction, 1 st of June 2012 Südzucker Group, page 38

39 Income statement (I) 1 st quarter (mn ) 2012/ /12 +/- in % Revenues ,1 Operating profit ,0 Restructuring costs and special items ,3 Income from operations ,8 Income from companies consolidated at equity ,1 Financial result ,0 Earnings before income taxes ,1 Income from companies consolidated at equity: Result includes the company's share of earnings from a joint-venture distributor, so far. Going forward it will also include the result from our participation in ED&F Man, which has been closed by the end of May Financial result: Despite higher average debt, net interest expense improved significantly, going from -22 million to -17 million, because of lower short-term interest rates on commercial papers to refinance the 500 million bond redeemed in February 2012 and the March 2012 installments for beets. Income/loss from financing activities went from 2 million to -9 million, mainly because of unrealized non-cash currency exchange losses related to euro financing of the Eastern European subsidiaries. Südzucker Group, page 39

40 Income statement (II) 1 st quarter (mn ) 2012/ /12 +/- in % Earnings before income taxes ,1 Taxes on income Net earnings for the year > 100 of which attributable to Südzucker AG shareholders > 100 of which attributable to hybrid capital 7 7 0,0 of which attributable to minority interests ,0 Earnings per share ( ) 1,17 0,48 > 100 Taxes on income: Positive tax result due to a one-time deferred tax income of 76 million. Minority interests: The co-owners of the AGRANA and CropEnergies Groups account for most of the other minority interests' share of the net earnings. Earnings per share*: EPS increased to 1.17, incl. one-off positive tax effect of 0.40 * Positive one-off tax effect guided in ad-hoc release dated 25 th of June 2012 Südzucker Group, page 40

41 Cash flow statement 1 st quarter (mn ) 2012/ /12 +/- in % Cash flow ,0 Increase (-) in working capital ,7 Investments in fixed assets Sugar segment ,8 Special products segment ,8 CropEnergies segment ,1 Fruit segment ,2 Total investments in fixed assets ,4 Investments in financial assets/acquisitions > 100 Dividends paid ,0 Cash flow: Investments: The increase is due to the excellent growth in operating profit. As expected, the increase in working capital caused committed capital to rise. The resulting increased financing requirements compared to last year are attributable to the significantly higher final installments for beets for the 2011 campaign in March and April, driven by higher prices and volumes. Investments in fixed assets were mainly for replacements and, among other things, on the construction of a wheat starch factory. Investment in financial assets were for the acquisition of a 25 % stake minus one share in the British trading company ED&F Man, London. Südzucker Group, page 41

42 Balance sheet (mn ) /- in % Assets Non-current assets ,0 Current assets ,8 Total assets ,2 Liabilities and shareholders' equity Shareholders' equity ,3 Non-current liabilities ,4 Current liabilities ,5 Total liabilities and shareholders' equity ,2 Net financial debt ,3 Equity ratio 53% 52% Net financial debt in percent of equity (gearing) 29% 24% Increase in current and non-current assets: The increase in current assets is largely due to the price and volume-driven increase in inventories. The increase in non-current assets is mainly due to the acquisition of an interest in ED&F Man. Increase in non-current and in current liabilities: Non-current liabilities rose primarily in light of higher provisions for pensions and similar obligations due to valuation adjustments. The increase in current liabilities is a result of an increase in current tax liabilities. Südzucker Group, page 42

43 Liquidity profile end of period (mn ) Q1 2012/13 Q4 2011/12 Q3 2011/12 Q2 2011/12 Q1 2011/12 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 Commercial paper program undrawn Bank credit lines (undrawn) Cash & cash equivalents / securities Syndicated loan (undrawn) Commercial paper (undrawn) = Total liquidity reserves Successful placement of Agrana promissory note in April 2012; 110 mn, maturity 5, 7 and 10 years Südzucker Group, page 43

44 Financing maturity profile (I) * (mn ) as of May 31, February EUR-Bond Hybrid mn Commercial Paper Programm (perpetual) Promissory Note Convertible Bond 600 mn Syndicated Loan * Displayed to 2019; 10-year tranche of Agrana promissory note in the amount of 7 mn due in 2022 Südzucker Group, page 44

45 Financing maturity profile (II) February 2012 April 2014 June 2015 June 2016 June 2016 April 2017/19/22 (Placement April 2012) March 2018 Perpetual 5.75% Bond 2002/2012, 500 mn 5.90% Südzucker promissory note, 45 mn 5.25% Hybrid Bond 2005/2015, 700 mn Perpetual; first issuer call right June % Convertible Bond 2009/2016, 283 mn Issuer Call after 4 years; Investor Put after 5 years Syndicated loan, 600 mn, no covenants Margin 50 bp, short-term borrowing facility 1 week < 1 year Agrana promissory note, 110 mn 4.125% Bond 2011/2018, 400 mn Commercial Paper-Program, 600 mn Drawn lines 2012/13 Q1: 370 mn Südzucker Group, page 45

46 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 15 CropEnergies page 23 Fruit page Financial Highlights Q1 2012/13 page Outlook 2012/13 page Appendix Annual Financial Statement 2011/12 page 51 Long-term development and key figures page 68 Additional information page 73 Südzucker Group, page 46

47 Outlook 2012/13 (I) Revenues 2011/ /13e Operating Profit 2011/ /13e Sugar 3.7 bn 511 mn Special Products 1.8 bn 149 mn CropEnergies 529 mn 53 mn > 50 mn Fruit 929 mn 38 mn Group 7.0 bn > 7.0 bn 751 mn > 800 mn Südzucker Group, page 47

48 Outlook 2012/13 (II) 2011/ /13e 212/13e EBITDA 1,015 mn Investments Fixed Assets Investments Finan. Assets Net Financial Debt 276 mn 10 mn 791 mn ~ 400 mn ED&F Man 255 mn USD ~ mn 1) RoCE 13.2 % 1) incl. ED&F Man Südzucker Group, page 48

49 Summary Umsatz Financial Year 2011/12 Targets achieved again RoCE above 13% (9,8%) Further improvement in balance sheet and financing structure Significant increase in dividend from 55 to 70 eurocent/share Financial Year 2012/13 Further increase in revenues and earnings expected Net financial debt in Q1 significantly above prior year s level Consolidation of Ybbstaler in Q2 Increase in flexibility based on 25%-participation in ED&F Man Merger division fruit juice concentrates with Ybbstaler Wheat starch plant alongside existing bioethanol plant Solid investment grade rating Comfortable liquidity position Well balanced maturity profile Strong balance sheet ratios Significant higher cash flow level Südzucker Group, page 49

50 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 15 CropEnergies page 23 Fruit page Financial Highlights Q1 2012/13 page Outlook 2012/13 page Appendix Annual Financial Statement 2011/12 page 51 Long-term development and key figures page 68 Additional information page 73 Südzucker Group, page 50

51 Group Key Figures further improved (mn ) 2011/ / / /09 Revenues EBITDA EBITDA-Margin 14,5% 12,6% 11,3% 8,3% Operating profit Operating Margin 10,7% 8,5% 7,0% 4,4% Restructuring and special items Income from operations (EBIT) Cash flow Net Financial Debt Equity Ratio 47,9% 50,8% 46,5% 41,9% Investments Capital Employed RoCE 13,2% 9,8% 7,5% 5,2% Earnings per share ( ) 1,99 1,33 1,06 0,86 Cashflow per share ( ) 4,35 3,20 2,92 2,66 Dividend per share ( ) 0,70 0,55 0,45 0,40 Südzucker Group, page 51

52 Targets achieved again 2010/ /12 Revenues 6.2 bn 7.0 bn Operating Profit 521 mn 751 mn Net profit 346 mn 515 mn Earnings per share Dividend per share Südzucker Group, page 52

53 Cash flow strength widens financial headroom 2010/ /12 Investments* 245 mn 276 mn Cash flow 606 mn 823 mn Net Financial Debt 854 mn 791 mn Liquidity ~2.2 bn ~2.2 bn *excl. investments in financial assets Südzucker Group, page 53

54 Targets achieved again in 2011/12 Outlook 2011/12 Reported 2011/12 Revenues ~6.8 bn 7.0 bn Operating Profit ~750 mn 751 mn Investments* ~300 mn 276 mn Net Financial Debt ~ mn ** deutliche 791 mn Ergebniserholung * excl. investments in financial assets ** original target incl. participation in ED&F Man Südzucker Group, page 54

55 Dynamic revenue development (mn ) +831 mn (+14%) +449 (+14%) +231 (+15%) Special Products +92 (+21%) Crop Energies +59 (+7%) Fruit 6, ,161 Sugar / / Südzucker Group, page 55

56 Overproportionate operating profit development (mn ) +230 mn (+44%) +5 (+4%) +7 (+16%) -8 (-18%) Special Products Crop Energies Fruit (+79%) 600 Sugar / / Südzucker Group, page 56

57 Earnings before income taxes (mn ) 2011/ /11 Operating profit Restructuring & special items Income from operations (EBIT) Income from companies consolidated at equity Financial result Earnings before income taxes Financial result: Increase in interest expenses was mainly due to an increase in gross financial debt following the placement of the 400 mn bond 2011/18 in March 2011, the purpose of which was an early refinancing of the 500 mn bond 2002/12 maturing in February Other financial expense went from -1 mn to -19 mn. This decline was primarily due to lower market values of interest-rate derivatives and the termination of interest-rate swaps due to the early repayment of the variable portion of the promissory note. Südzucker Group, page 57

58 Earnings per share follows good operating development (mn ) 2011/ /11 Earnings before income taxes Taxes on income Consolidated net earnings thereof Südzucker AG shareholders thereof hybrid capital thereof other minority interest Earnings per share ( ) 1,99 1,33 0,66 Group tax rate again came in at 22 %. Other minority interests of 112 mn relate mainly to minority shareholders of the AGRANA Group and CropEnergies. Dividend: 0.70 (0.50) /share Amount distributed: 133 (104) mn Payout ratio: 35 (41) % Südzucker Group, page 58

59 Investments still on depreciation level (mn ) 2011/ / /12 Fixed Assets Depreciation 264 Sugar Sugar 115 Special Products Special Products 82 CropEnergies CropEnergies 31 Fruit Fruit 36 Financial Assets Sugar Special Products CropEnergies Fruit Südzucker Group Projected fixed asset investments of ~ 300 mn achieved. Südzucker Group, page 59

60 Further reduction in Net Financial Debt (mn ) Mainly due to volume and price driven increase of inventories especially in segment sugar Maintenance capex in established capacities 1,632 1, Working Capital -286 Investments -168 Dividends 823 Cash flow NFD NFD NFD NFD Südzucker Group, page 60

61 Return on Capital Employed (RoCE) 2011/ / /12 (mn ) RoCE RoCE Op. Profit Cap. Employed Südzucker Group 13,2% 9,8% Sugar 17,1% 10,4% Special Products 10,7% 10,8% CropEnergies 10,2% 8,7% Fruit* 4,7% 6,7% * Adjustment segment fruit: Goodwill book value redirected to participation level of parent company Sugar: Special Products: CropEnergies: Fruit: Group: Significant increase despite increase in capital employed as earnings show significant uplift Confirmation of prior year s level with stable capital employed Further improvement due to significant earnings hike with stable capital employed Decrease due to higher capital employed and lower earnings contribution Despite higher capital employed RoCE improves significantly mainly driven by segment sugar Südzucker Group, page 61

62 Breakdown of Capital Employed (2011/12) Breakdown by assets Breakdown by segments 23% 14% 45% mn mn 52% 9% 32% 25% Goodwill Working Capital Fixed assets Sugar CropEnergies Special Products Fruit Südzucker Group, page 62

63 Solid balance sheet ratios (mn ) Total assets Equity Equity ratio 47,9% 50,8% 46,5% 41,9% Net Financial Debt (NFD) Gearing (NFD/Equity) 19,9% 23,2% 30,9% 50,5% Cash flow NFD/Cash flow 1,0x 1,4x 1,9x 3,2x Goodwill Fixed assets* Working Capital ** Capital Employed RoCE 13,2% 9,8% 7,5% 5,2% * Including intangible assets **Adjustment segment fruit: Goodwill book value redirected to participation level of parent company Südzucker Group, page 63

64 Comfortable liquidity position (mn ) 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 (July 2012) undrawn Commercial paper program undrawn = Total liquidity reserves Successful placement of Agrana promissory note in April 2012; 110 mn, maturity 5, 7 and 10 years Südzucker Group, page 64

65 Group balance sheet (mn ) 1,504 (20.7 %) Assets Other current assets 1,928 (23.3 %) 2,211 (30.5 %) Liabilities Current liabilities 2,515 (30.3 %) 1,709 (23.5 %) Inventories 2,324 (28.0 %) 1,362 (18.8 %) Non-current liabilities 1,805 (21.8 %) 4,046 (55.7 %) Non-current assets 4,037 (48.7 %) 3,687 (50.8 %) Equity 3,969 (47.9 %) Total 7,260 8,289 Total 7,260 8,289 Südzucker Group, page 65

66 Group balance sheet (mn ) (mn ) Intangible assets ,4% ,4% Fixed assets ,8% ,2% Shares in companies consolidated at equity 12 0,1% 11 0,2% Other investments and loans 34 0,4% 32 0,4% Securities 105 1,3% 105 1,5% Receivables and other assets 9 0,1% 29 0,4% Deferred tax assets 131 1,6% 125 1,7% Non-current assets ,7% ,7% Inventories ,0% ,5% Trade receivables and other assets ,7% ,9% Current tax receivables 16 0,2% 24 0,3% Securities 108 1,3% 151 2,1% Cash and cash equivalents 502 6,1% 250 3,4% Current assets ,3% ,3% Equity attributable to shareholders of SZ AG ,6% ,2% Hybrid capital 684 8,3% 684 9,4% Other minority interest 669 8,1% 591 8,1% Shareholder's equity ,9% ,8% Provisions for pensions and similar obligations 546 6,6% 477 6,6% Other provisions 174 2,1% 168 2,3% Non-current financial liabilities ,2% 548 7,5% Other liabilities 13 0,2% 14 0,2% Deferred tax liabilities 141 1,7% 155 2,1% Non-current liabilities ,8% ,8% Other provisions 184 2,2% 188 2,6% Current financial liabilities 574 6,9% ,2% Trade payables and other liabilities ,2% ,2% Current tax liabilities 85 1,0% 32 0,4% Current liabilities ,3% ,5% Total assets ,0% ,0% Total liabilities and shareholders' equity ,0% ,0% Südzucker Group, page 66

67 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 15 CropEnergies page 23 Fruit page Financial Highlights Q1 2012/13 page Outlook 2012/13 page Appendix Annual Financial Statement 2011/12 page 51 Long-term development and key figures page 68 Additional information page 73 Südzucker Group, page 67

68 Südzucker with strong capital market presence Südzucker Share* Südzucker Bonds 31% 56% mn shares 34% Financial liabilities* 7% 10% 62% (mn ) 2011/12 Cashflow per share ( ) 4,35 Earnings per share ( ) 1,99 Dividend per share ( ) 0,70 Dividend yield 3,22% Closing price XETRA (balance sheet date) 21,75 Average trading volume/day 0,9 mn shares Market capitalisation (balance sheet date) Number of shares issued * as of February 29, 2012 SZVG Free Float Zucker Invest GmbH Liabilities to banks Others Bonds (mn ) Due date Coupon Nominal value Convertible bond ,50% 283,5 Bond 2011/ ,125% 400,0 Hybrid bond 2005/15 ** 5,25% 700,0 * as of February 29, 2012 incl. hybrid bond ** first issuer call right by Südzucker as of June 2015 Südzucker Group, page 68

69 Rating ratios improved Rating agency Long-term rating Short-term rating BBB+ * Stable outlook A 2 Baa 1 ** Positive outlook *** P / / / /12 Net Financial Debt/ Cash flow 3.2x 1.9x 1.4x 1.0x Südzucker Group, page 69 * since June 2012 ** since January 2012 *** since August 2012

70 Long-term development (I) Pre-Reform Transition Period Post-Transition Period Actual Actual Actual Actual Actual Actual Actual Actual Actual Outlook (mn ) 2003/ / / / / / / / / /13e Revenues > EBITDA EBITDA-Margin 14,8% 15,0% 12,5% 11,8% 8,5% 8,3% 11,3% 12,6% 14,5% Operating profit > 800 Operating Margin 10,5% 10,8% 8,4% 7,3% 4,0% 4,4% 7,0% 8,5% 10,7% Income from operations (EBIT) * Earnings before income taxes (EBT) Net earnings thereof to SZ AG shareholders Market capitalization Closing price on February 28/29 15,55 16,18 22,21 15,97 14,50 13,66 17,06 19,90 21,75 Earnings per share ( ) 1,48 1,67 1,36-1,72 0,10 0,86 1,06 1,33 1,99 Dividend per share ( ) 0,50 0,55 0,55 0,55 0,40 0,40 0,45 0,55 0,70 Cash flow Investments total ~ 400** Capital Employed RoCE 11,7% 11,3% 8,6% 8,8% 4,7% 5,2% 7,5% 9,8% 13,2% Total Assets Equity Equity Ratio 39,5% 38,1% 47,1% 42,4% 41,7% 41,9% 46,5% 50,8% 47,9% Net Financial Debt (NFD) ~ *** Gearing (NFD/Equity) 46,1% 61,1% 31,5% 24,1% 45,7% 50,5% 30,9% 23,2% 19,9% * Extraordinary impact from Goodwill impairment loss ** Capex (excluding investments in financial assets) *** incl. investment in ED&F Man Südzucker Group, page 70

71 Long-term development (II) Cash flow (mn ) Revenues (bn ) >7.0 Net Financial Debt (mn ) Operating Profit (mn ) 1,672 1,508 1,632 1,100 1,177 1, NFD/CF 2.1x 3.0x 2.2x 1.5x 3.0x 3.2x 1.9x 1.4x 1.0x >800 Sugar Special Products CropEnergies Fruit Südzucker Group, page 71

72 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 15 CropEnergies page 23 Fruit page Financial Highlights Q1 2012/13 page Outlook 2012/13 page Appendix Annual Financial Statement 2011/12 page 51 Long-term development and key figures page 68 Additional information page 73 Südzucker Group, page 72

73 Revenue by region 2011/12 Rest of world (17 %) Germany (25 %) 6,992 mn EU 12 (17 %) EU 15 (41 %) Südzucker Group, page 73

74 Segment Sugar: Campaign SMY 2011/12 Beet growers: 43,000 (44,600) Beet acreage: 412,000 (388,000) ha Sugar factories (incl. refineries): 32 (32) Beet processing: 31.3 (26.1) mn tons Sugar production: 5.4 (4.2) mn tons thereof from beets: 4.9 (3.9) mn tons thereof raw sugar raffination: 0.5 (0.3) Mio. t Südzucker Group, page 74

75 Südzucker well positioned in Beet Belt Germany Poland Belgium Czech Republic Slovakia Moldova France Austria Hungary Romania Südzucker Group, page 75

76 EU quota sugar production - sugar marketing year* 2012/13 Market share** EU quota sugar production Südzucker quota share per country (in %) Südzucker Group (24 %) Nordzucker (15 %) Great Britain Poland British Sugar (11 %) Belgium72 Germany Czech Republic 39 Slovakia Moldova All others (32 %) Royal Cosun (7 %) Cristal Union (8 %) Tereos (11 %) Pfeifer & Langen (8 %) Portugal Spain 20 France 100 Austria Italy 100 Hungary Bosnia- Hercegowina 35 Greece Rumania Bulgaria * Sugar marketing year: Oct. Sep. ** Südzucker estimates Südzucker Group, page 76 Südzucker distribution activity Non-EU production

77 Price development for raw and white sugar (NYMEX, LIFFE, EU) Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 Quotation for sugar in / ton Quotation for sugar in / ton White sugar contract No. 5 LIFFE London (Future contract switching upon expiry) Raw sugar contract No. 11 NYMEX New York (Future contract switching upon expiry) Südzucker Group, page 77

78 Political environment: EU Implementation of the European climate and energy package Sustainability regulations are being codified into law in several member states Approval of certification systems which are valid in the whole EU accelerates implementation process EU Commission introduced anti-dumping and anti-subsidy proceedings against bioethanol imports from the USA On 25 November 2011, EU Commission launches an investigation of US trading practices on the initiative of the European bioethanol association epure Assessment of compensatory measures to be completed by 24 August 2012 at the latest EU27: Renewable Energies in the Transport Sector mn t toe Other Renewables Bioethanol Source: Evaluation of EU member states national action plans.000 m Development EU bioethanol production 0 FRA GER ESP UK POL SWE HUN AUT Others Source: F.O. Licht Südzucker Group, page 78

79 Political environment: Germany Biofuel quotas Individual quota for petrol: 2.8% Total quota for biofuels as from 2012 et seqq.: 6.25% Conversion of biofuel quotas to greenhouse gas savings potential from : 3 wt.-%, 2017: 4.5 wt.-%, 2020: 7 wt.-% Advantage for bioethanol compared to other biofuels Biofuel Sustainability Regulation Source: BAFA Bioethanol Consumption in Germany 3,7% 3,7% Obligation to produce proof of energetically used biomass from 1 January 2011 Biofuels Sustainability Regulation implements the stipulations of the EU regarding sustainable production of biofuels Implementation guarantees reduction of greenhouse gases with the blending of biofuels e.g. bioethanol made from wheat and sugar beet,000 m ,2% 3,8% 4,4% 4,2% 4,3% 4,1% 4,1% 4% 0 0% Oct 10 Dec 10 Feb 11 Apr 11 Jun 11 Aug 11 Oct 11 Dec 11 Feb 12 Direct blending Bioethanol in ETBE Bioethanol in E85 Petrol quota 6% 2% Südzucker Group, page 79

80 Price development wheat and maize (Euronext, LIFFE) Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Aug-08 Aug-09 Aug-10 / ton Aug-11 / ton Aug-12 Wheat price (Future contract switching upon expiry) Price for maize (Future contract switching upon expiry) Südzucker Group, page 80

81 Financial calender Q2 1 st half year report 2012/13 October 11, 2012 Q3 3 rd quarter report 2012/13 January 10, 2013 Press and analysts conference fiscal 2012/13 May 16, 2013 Q1 1 st quarter report 2013/14 July 11, 2013 Annual general meeting for fiscal 2012/13 August 1, 2013 Q2 1 st half year report 2013/14 October 10, 2013 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 behavior and 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, page 81