Investor Roadshow Cologne/Düsseldorf, 28 July 2016

Transcription

1 Investor Roadshow Cologne/Düsseldorf, 28 July 2016 Nikolai Baltruschat (Head of Investor Relations) Südzucker Group, page 1

2 Disclaimer This presentation contains forward looking statements. The statements are based on current assumptions and estimates made by the executive board and information currently available to its members. The forward looking statements are not to be viewed as guarantees of the future developments and results presented therein. Future developments and results are in fact dependent on a variety of factors and are subject to various risks and imponderables. They are based on assumptions that could in fact prove to be invalid. The risk management report in the 2015/16 annual report on pages 94 to 109 presents an overview of the risks. We assume no obligation to update the forward-looking statements made in this presentation. This presentation includes percentage and number rounding. Typing and printing errors reserved. IFRS 11 application as of financial year 2013/14. Written and visual value statements are standardized as follows: ±1% stable / ±1-4% slight / ±4-10% moderate / >/< 10% significant Südzucker Group, page 2

3 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights Q1 2016/17 page Outlook 2016/17 page Appendix Long-term development and key figures page 65 Additional information page 77 Südzucker Group, page 3

4 Südzucker Group at a glance Global operating German food group with long-standing corporate history: Südzucker Group, page :Foundation of first sugar company 1926:Foundation of Süddeutsche Zucker-AG Revenues: 6,387 mn Operating profit: 241mn Production facilities: ~100 Employees: ~ Beneficiary of mega trends within food, animal feed and energy area Stock exchangelisting in Germany MDAX-member Trading volume: ~ 1.1 mn shares/day Market Cap and Shareholder Structure* Zucker Invest GmbH (10%) Südzucker indirect via Z&S (43%) Agrana ~1.4 bn Z&S*** (86%) Free float (34%) Südzucker ~4.5 bn SZVG** (56%) Südzucker direct (~7%) Free float (7%) SZVG** (7%) Südzucker (69%) Crop Energies ~463 mn Free float (24%) * July2016 ** Süddeutsche Zuckerrübenverwertungs-Genossenschaft eg *** Z&S Zucker und Stärke Holding AG (~50% Südzucker, ~50% ZBG (Zucker- Beteiligungsgesellschaft m.b.h.))

5 Key figures 2015/16 (mn ) Sugar Special Prod. CropEnergies Fruit Group Revenues EBITDA EBITDA-Margin 1,7% 13,7% 18,5% 9,4% 8,1% Depreciation Operating profit Operating Margin -2,7% 9,5% 13,2% 5,7% 3,8% Cash flow 480 Investments in fixed assets Capital Employed RoCE (incl. Goodwill) -2,6% 11,9% 17,7% 7,5% 4,2% RoCE (excl. Goodwill) -3,5% 14,8% 17,7% 8,5% 5,2% Equity Ratio 55,0% Gearing (NFD/Equity) 12,4% Earnings per share ( ) 0,53 Dividend per share ( ) 0,30 Südzucker Group, page 5

6 LeadingMarket Positions and clearstrategic 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 bioethanol 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 Market share expansion through new facilities Development of product portfolio and regions Full exploitation of implemented capacity build-up Consolidation of the leading position Take full benefit of global increase in demand for healthy food and upmarket products through new facilities (e.g. USA) Usage of integrated platform to raise synergies in combined global sourcing and distribution Platform with Austria Juice supports growth and profitability Südzucker Group, page 6

7 Portfolio benefits from long-term megatrends 8,000 6,000 mn sugarconsumption worldwide t 218, , ,000 USD 12,000 8,000 per capita income worldwide 4,000 2,000 population growth worldwide 98,000 58,000 18,000 4,000,0 emerging markets Sources: United Nations, F.O. Licht Source: ERS InternationalMacroeconomic DataSet mn barrel / day oil consumption USD / barrel crude oil price,200 0 mn t 1,000,800,600,400 global animal feed production Source: BP, EIA Source: USDA Südzucker Group, page 7

8 Return on Capital Employed(RoCE RoCE)* Capital Employed 5,707 5,950 5,873 5,877 5,791 5,840 (mn ) Group RoCE (%) 13, % 16, % 10, % 3,1 3.1 % 4,1 4.2 % 9,5 9.5 % 2011/ / / / /16 16 Ø 5 years Sugar 17.1% 22.4% 13.7% 0.2% -2.6% ~10.2% RoCE Special Products 10.7% 9.5% 6.3% 8.7% 11.9% ~9.4% CropEnergies 10.2% 17.3% 6.4% -2.2% 17.7% ~9.9% Fruit 4.7% 5.0% 8.1% 8.4% 7.5% ~6.7% Südzucker Group, page 8 * IFRS 11 adjusted since 2013/14

9 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights Q1 2016/17 page Outlook 2016/17 page Appendix Long-term development and key figures page 65 Additional information page 77 Südzucker Group, page 9

10 Rating Rating agency Long-term rating Short-term term rating BBB-* Positive Outlook ** A 3 * Baa2 *** StableOutlook **** P 2 * since 15 June 2015 ** since21 June 2016 *** since17 June 2014 ****since20 May 2016 Südzucker Group, page 10

11 Unchanged comfortable liquidity position* (mn ) without IFRS 11 with IFRS 11 with IFRS 11 with IFRS 11 Net financial debt Cash & Cash equivalents / securities es Gross financial debt Long-term financial al debt Short- term financ ial debt Bank credit lines: undrawn Syndic ated loan fac ility undrawn Syndic ated loan fac ility Agrana undrawn Commercial paper program undrawn = Total liquidi ty reserves * IFRS 11 adjustedsince28 February2014 Südzucker Group, page 11

12 Favourable financing maturity profile* (mn mn ) asof 31 May EUR-Bond Promissory Note Syndicated loan 1,050 mn Commercial Paper Programm 600 mn (perpetual) Hybrid Bond 700 mn (perpetual) 5.25 % p.a. beforejune 2015 payoutannually/ since June variable M-Euribor bp payout quarterly * Displayedto2021; Agrana promissorynote: 7 mn tranchedue in 2022 Südzucker Group, page 12

13 Hybrid bond: 2015/16 cash flow covenant* safely achieved (mn ) 2006/ / / / / / / / / / /17e Revenues Cash flow >prev. year Cash flow / Revenues 9,6% 8,6% 8,6% 9,7% 9,8% 11,8% 12,6% 9,3% 5,7% 7,5% * IFRS 11 adjusted since 2013/14 7,5% >prev. year Cash flowcovenant(cash flow/ revenues>5 %) so farsignificantlyexceeded Cash flow covenant fulfillment also expected in 2016/17 Options forhybrid bond2005 (depending dependingon continuous financial planning): Since30 June 2015: quarterlyvariable interestpayment, 3M Euriborplus 3.10 % p.a. Periodfrom30 June 2016 to30 September 2016 (excl.), rate of remunerationfixedat % p.a. Since 30 June 2015, bond can be called and redeemed on quarterly basis at nominal value (according to 6 (5) & (6)) Precondition to use issuer call right is replacement through new hybrid or equity capital A bondrepurchase also partially ispossibleat anytime Still preferred option: No call of hybrid bond Südzucker Group, page 13

14 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights Q1 2016/17 page Outlook 2016/17 page Appendix Long-term development and key figures page 65 Additional information page 77 Südzucker Group, page 14

15 Segment Sugar (mn ) 2015/ /15 Revenues ,6% EBITDA ,0% EBITDA-Margin 1,7% 4,1% Operating Result Operating Margin -2,7% 0,2% Restructuring and special items Income from companies consolidated at equity Income from operations (EBIT) Investments ,9% Fixed Assets ,9% Financial Assets Capital Employed ,9% RoCE -2,6% 0,2% Südzucker Group, page 15

16 Segment Sugar: World market environment* World Sugar Balance (mn t) Sugar world market price(usd/t) 184,2 181,4 181,2 174,3 176,3 171,6 175,8 179,0 181,3 183, White sugar 74,1 78,8 80,0 70,4 63, / / /15e 2015/16e 2016/17e 43,2% * 44,8% * 44,7% * 38,8% * 34,7% * Production Consumption Ending Stock *Endingstock in % of consumption 2015/16: Significant inventory reduction first time since 6 years 2016/17: Further inventory reduction leads to low inventory level Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Following low in September, since October recovery world market price(high volatility) Now: World market price > EU-price (against latest price reporting EU-COM, April 2016) Südzucker Group, page 16 * Simplified

17 Segment Sugar: EU market environment* EU-COM quota sugar inventory (mn t) Price reporting EU-COM ( /t) Südzucker Group, page Sept.'08 Sept.'09 Sept.'10 Sept.'11 Sept.'12 Sept.'13 Sept.'14 Sept.'15 Sept.'16e Imports Stable situation in SMY 2013/14 following multi-year increase Decrease of imports SMY 2014/15; further reduction in SMY 2015/16 expected Inventory level quota sugar EU measures lead to massive increase Decrease in SMY 2013/14 and 2014/15 Further reduction in SMY 2015/16 expected Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Pricing quota sugar Massive reduction until December 2014 Current bottoming out with slightly increasing trend Upside opportunity in course of SMY 2015/16 and 2016/17 * Simplified

18 EU sugar market* -supply and demand until 2017 World Market EU Production EU Demand World Market Quota sugar ~ mnt CAGR 2-3% ~13 mnt 3-4 mnt o/w SZ: Rawsugarimportsfor raffinationthroughsz ~0.3 mnt Demand** mnt Production** mnt o/w SZ 3.2 mnt o/w SZ ~25% upto to0.4 mnt max. ~1.4 mnt ~3-4 mnt ~2-3 mnt Non-quota sugar *Simplified, excl. isoglucose **F.O. Licht estimate for 2015/16, May 2016 Südzucker Group, page 18

19 Segment Sugar: Europe European market leader(24%) Pan-European sales and logistic strategy Sustainable production in highest beet-yield areas in Europe Cost savings throughout entire value chain Great Britain Poland Germany Belgium 7 Czech Republic Slovakia Austria France Hungary Moldova Romania Keeping and strengthening competitiveness Exploiting growth opportunities outside Europe Portugal Spain Italy Bosnia- Hercegovina Bulgaria Greece Exports fromeu Acquisitions Distribution activities Beet sugar factories Sugar refineries Südzucker Group, page 19

20 EU quota sugar production- sugar marketing year* 2015/16 Market share** EU quota sugar production Südzucker quota shareper country(in %) Südzucker Group (24 %) Nordzucker (15 %) Great Britain Poland Tereos (11 %) Belgium 72 Germany Czech Republic 39 Slovakia Moldova British Sugar (11 %) 20 France 100 Austria 100 Hungary 35 Rumania All others (16 %) Royal Cosun (7 %) Cristal Union (8 %) Pfeifer & Langen (8 %) Portugal Spain Italy Bosnia- Hercegowina Bulgaria Greece * Sugar marketingyear: Oct. Sep. ** Südzucker estimates Südzucker Group, page 20 Südzucker distribution entities Non-EU production

21 Participationin in ED&F Man offersa global footprint Long standing successful history(founded 1783) Truely global footprint(~3,400 employees in 60 countries) Beneficiaryoflong-term growthin global sugar demand Approx. 9 mnt global sugartradingvolume; oneof thelargestsugartraderwithsignificantpresencein Central and South America, Far East, South East Asia and Africa Sugar only Liquid Products only Coffee only Multiple businesses Participationsin sugarproductionandrefiningcapacitiesamongstothersin the Ukraine, Mexico, Chile and India Well positioned in further complementary key product categories Trading of coffee(incl. roasting) and molasses(man liquid products) Further business activities in divisions shipping and financial services Südzucker Group, page 21

22 Segment Sugar: Outlook 2016/17 Revenues Annual average sales revenues increase compensates for missingrevenuescontributionfromclosedrefineryin Marseille and end of cooperation with Mauritius Stable revenues(prev. year: 2,855 mn ) Operating Result Expected sales revenues increase throughout the year leads to positive operating result Higher sugar factory utilisation in camapign 2016 contributes positively in H2 Execution of cost savings as planned Positive operating result (prev. year: -79 mn ) Südzucker Group, page 22

23 EU Sugar Market: Mid term Outlook (I) EU sugar policy until 30 September 2017 Sugar and isoglucose quota Quota sugar: Minimum beet price Contractual obligation between industry and farmer Specification of EU-Toolbox : Market withdrawals, conversion of nonquota into quota sugar, import tender Exports limited to about 1.4 mnt p.a. New market framework 1 October 2017 Elimination of sugar and isoglucose quota No minimum beet price Contractual obligation between industry and farmer Further measures/security net (e.g. private storage) require resolution No export restrictions Border Protection: unchanged Import duty 419 /t (white sugar) resp. 339 /t (raw sugar) from non-preferential countries Preferential agreements with LDC-/ACP- and Andean countries: unchanged Südzucker Group, page 23

24 EU Sugar Market: Mid term Outlook (II) EU sugar demand currently served by EU sugar demand asof October 1, 2017 served by EU beet sugar 70 % EU sugar demand 19 mn t EU beet sugar 10 % EU sugar demand 19 mn t Imports 16 % Quota EU isoglucose 4 % Non-Quota Max. Export Volume (WTO): about 1.4 mn t No export restrictions Südzucker Group, page 24

25 EU Sugar Market: Mid term Outlook (III) Opportunities Südzuckerwell positioned as largest producer with focus on best growing regions Only limited effort needed to increase and extend current production level (with high entry barrier at the same time) Utilization of current European logistic network to optimize sugar distribution and development of new markets Investment program to exploit future market potential (e.g. starch) Strengthening and extension of cooperations(e.g. ED&F Man, LDC/ACP producers) Challenges Stronger competition, also from Isoglucose Further EU free trade agreements with third party countries Raw material security in increasingly more volatile market environment Volatility in world market price and volume with even stronger influence on EU market Südzucker Group, page 25

26 Segment Sugar: Mid term Outlook 2019/20e Global demand trend of ~ 2% p.a. growth intact (population growth, increase in per-capita income ) Midterm recovery of world market price Operating Result Perspective Temporary EU market distortion in transition period Stop of EU market restrictions, e.g. minimum beet price, ~ 250 mn Strong market position in combination with strong foothold in best growing area in the centreof demand Necessary efficiency improvements Increase production to ~120days (fixed cost degression) Omission of EU minimum beet price / flexible beet price payment -79 mn Cost savings program Capex Maintenance Administration (further centralization) 2015/ /20e No restrictions on exports anymore (partnership with ED&F Man) Südzucker Group, page 26

27 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights Q1 2016/17 page Outlook 2016/17 page Appendix Long-term development and key figures page 65 Additional information page 77 Südzucker Group, page 27

28 Segment Special Products (mn ) 2015/ /15 Revenues ,9% EBITDA ,5% EBITDA-Margin 13,7% 11,2% Operating Result ,9% Operating Margin 9,5% 7,0% Restructuring and special items Income from companies consolidated at equity ,0% Income from operations (EBIT) ,3% Investments ,5% Fixed Assets ,1% Financial Assets Capital Employed ,3% RoCE 11,9% 8,7% Südzucker Group, page 28

29 Segment Special Products: Overview Segment specialproductsshowsverysolid fundamental development and record result* Growth based on intact mega trends: Unchanged trend to alternative and functional food ingredients Further growing demand for convenience products Unchanged global demand growth for aminal feed(e.g. gluten) New capacitiestotakebenefitof market growth(e.g. pizza and starch) Productioncostreductionvia alternative energy concepts(biomass boiler Chile) Efficiency gains via distribution synergies * with respect to IFRS 11 regrouping Hungrana in 2013/14 from operating profit to income from companies consolidated at equity 1,575 Starch*** 39% Revenues(mn )** 1,806 1,862 Revenue split 2015/16 PortionPack 7% 1,791 mn 1,7400 1,724 1, / / / / / /16 Freiberger 31% BENEO (Functional Food) 23% ** IFRS 11 adjusted since 2013/14 *** incorporates AGRANA bioethanol and starch activities Südzucker Group, page 29

30 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 per-capita income (emerging markets) Market leadership in main product categories BENEO-Orafti(prebioticfibresfromchicoryroots): Core productsinulin andoligofructose; distributionof CropEnergies by-product BeneoPro W BENEO-Palatinit (functionalcarbohydrates): Global leadershipwithisomalt. Successfulpositioningof 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 Exploitationof of growthpotential of our core products Development of new marketsvia innovations Offstein Südzucker Group, page 30

31 Segment Special Products: Division Starch* Well establishedplayerasmanufacturerofspecialtystarchesforthepaper, textile, cosmetics, pharmaceutical and construction industries Principal focus on organic and GM-free starches for the food industry Agrana starch factory for production of wheat starch and gluten at the site of bioethanol plant in Pischelsdorf(June 2013). Investment of 70 mn. Capacity for 107,000 t wheat starch, 23,500 t wheat gluten, 55,000 t wheat bran and 70,000 t of material substitutes ( B+C starch ) for bioethanol. New modular concept with new Südzuckerstarch factory at the site of bioethanol plant in Zeitz. ComissioningH1 FY 2016/17. Investment of 125 mn. Capacity for up to 140,000 t wheat starch products. Zeitz (DE, new plant) Gmünd (A) Aschach(A) Pischelsdorf(A) Production starch Szabadegyhaza(HU) Tandarei(RO) Production bioethanol * incorporates AGRANA bioethanol and starch activities Zeitz Südzucker Group, page 31

32 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 32

33 Segment Special Products: Division PortionPack Europe European market leader in individually packaged portions for the food and non-food sectors 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 and the advertising/promotion sectors Telford Oud-Beijerland Beijerland(NL) Krakow Herentals(B) Landgraaf(NL) Nuremberg Prague Barcelona Südzucker Group, page 33 facility Prague

34 Segment Special Products: Outlook 2016/17 Revenues Divisions Freiberger, Beneo, starch and PortionPack overall performance with slight increase Slight revenue increase (prev. year: 1,791 mn ) Operating Result High charges related to commissioning of new starch plant in Zeitz(commissioning H1 2016/17) Significantly lower operating result (prev. year: 171 mn ) Südzucker Group, page 34

35 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights Q1 2016/17 page Outlook 2016/17 page Appendix Long-term development and key figures page 65 Additional information page 77 Südzucker Group, page 35

36 Segment CropEnergies (mn ) 2015/ /15 Revenues ,8% EBITDA >100% EBITDA-Margin 18,5% 3,3% Operating Result Operating Margin 13,2% -1,5% Restructuring and special items Income from companies consolidated at equity Income from operations (EBIT) Investments ,3% Fixed Assets ,3% Financial Assets Capital Employed ,4% RoCE 17,7% -2,2% Südzucker Group, page 36

37 Segment CropEnergies: Market environment 2015/16 Market- and price development bioethanol High volatility Südzucker Group, page 37 Significant increase in 2015 from all-time low at 417 /m 3 on 14 Jan above 600 /m 3 in Dec EU prices decline again to 500 /m 3 end of February 2016; average 460 /m 3 in April; increase in May and June 2016 Market development grain Global 2015/16e: production of 1,994 million t and graininventorytoincreaseby5.6 % to484 milliont EU 2015/16e: grainharvesttodecreaseby5.5%, but 310 milliont arestill aboveaverage EU grainprice: dipto150 /t byend of February2016 CropEnergies capacity utilization Zeitz, Wanze, Loon-Plage with high ultilisation Ensus: temporarystandstill in 2015/16; testphaseat thelatestin July2016 Bioethanol production 2015/16 decreased as expected to 837,000 (1,056,000) m³ ( /m 3 ) Quotation: Wheat /t / Ethanol /m 3 Houston Santiago de Chile Production facility NYMEX Fuel EtOH T2 FOB Rdm. Euronext Paris Wheat No. 2 Nettorohertrag für Weizen-EtOH São Paulo Rotterdam Loon-Plage Wilton Wanze Tank storage Duisburg Zeitz Trading ( /t)

38 EU: agreement on framework for 2020 ( iluc directive ) Amendment published on 15 Sept 2015 Share of renewable energies in transport of 10% in 2020 (unchanged) Share of conventional biofuels: up to 7% Subtargetfor biofuels from waste and residues: 0.5% EU: market size and market potential (in 1,000 toe *) 30,000 25,000 EtOH 27,000 FAME** Double counting of advanced biofuels and multiple counting of renewable electricity 20,000 18,900 ~19,300 Reporting of estimated iluc emissions 15,000 ~14,200 ~5,300 Assessment and outlook Agreement ends discussion and insecurity after 3 years transfer in national law until Sept ,000 5,000 ~2,700 ~11,500 ~14,000 E10 from EU ethanol (plus protein byproducts) offers a clean, safe, strong solution to decarbonize transport Stable framworkfor sustainable biofuels beyond 2020 needed 0,000 Actual (2015) 10 cal.-% (2020) * tonne of oil equivalent ** fatty acid methyl esther 7 cal.-% B7/E10 (2020) (2015) Source: EUROBSERV ER, EU, CE Südzucker Group, page 38

39 Segment CropEnergies: Outlook 2016/17 Umsatz Revenues Revenuesexpectedat 565 to625 mn (prev. year: 658 mn ) Operating Result Operating resultexpectedat 50 to80 mn (prev. year: 87 mn ) Restructuring Temporary special charges during shutdown of Ensus plant up to 16 mn Ensus On 17 May 2016, CropEnergiesannounced that it would restart the bioethanol plant in Wilton, Great Britain, in July The factory has been shut down since February How long the plant operates and the result it generates will also impact revenues and earnings. However, the corresponding impact on the forecast has not yet been considered. Südzucker Group, page 39

40 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights Q1 2016/17 page Outlook 2016/17 page Appendix Long-term development and key figures page 65 Additional information page 77 Südzucker Group, page 40

41 Segment Fruit (mn ) 2015/ /15 Revenues ,0% EBITDA ,8% EBITDA-Margin 9,4% 9,8% Operating Result ,2% Operating Margin 5,7% 6,1% Restructuring and special items Income from companies consolidated at equity Income from operations (EBIT) ,3% Investments ,0% Fixed Assets ,0% Financial Assets Capital Employed ,3% RoCE 7,5% 8,4% Südzucker Group, page 41

42 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: Largest manufacturing fruit juice concentrates in Europe (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 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 Reorganisation measures in division fruit preparations in Central Europe Production facility AGRANA FruitS.A.S. Fruit preparations ~75% of segment revenues ⅓of worldmarket AGRANA Internationale Verwaltungs- und Asset-Management GmbH 24 facilities worldwide AUSTRIA JUICE GmbH Fruit juice concentrates ~25% of segment revenues Largest manufacturing fruit juice concentrates in Europe 14 facilities worldwide Südzucker Group, page 42

43 Segment Fruit: Outlook 2016/17 Revenues Division fruitpreparationswithhigherrevenuesvia increasein sales volume Division fruitjuiceconcentrateswithrevenuesincreasevia sales revenues increase Significant increase in revenues(prev. year: 1,083 mn ) Operating Result Division fruit preparations with stable earnings Division fruit juice concentrates with earnings increase due to positive price development Operating result above previous year (prev. year: 62 mn ) Südzucker Group, page 43

44 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights Q1 2016/17 page Outlook 2016/17 page Appendix Long-term development and key figures page 65 Additional information page 77 Südzucker Group, page 44

45 Group income statement 1 st quarter (mn ) 2016/ /16 +/- in % Revenues ,3 EBITDA ,1 EBITDA margin 9,9% 6,6% Depreciation ,2 Operating result ,1 Operating margin 6,8% 3,5% Restructuring costs/special items ,5 Result from companies consolidated at equity ,3 Result from operations ,8 Net earnings for the period attributable to Südzucker shareholders > 100 Earnings per share ( ) 0,26 0,10 > 100 Cash flow ,4 Investments in fixed assets* ,6 Net financial debt ,5 Employees ,1 * Including intangible assets Südzucker Group, page 45

46 Financial Highlights Q1 2016/17 Group revenuesdeclinesby1 % to1,608 (1,629) million Operating resultincreases93 % to110 (57) million Cash flowincreases23 % to125 (102) million Earningsper shareincreasesto0.26 (0.10) Net financialdebtdecreasesby87 million to742 (829) million Net financialdebtas% of equitydecreasesto16 (18) % Equity ratiostill on high levelat 57 (55) % Südzucker Group, page 46

47 Segment Sugar: Development Q1 2016/17 1 st quarter (mn ) 2016/ /16 +/- in % Revenues ,4 EBITDA 35 0 > 100 EBITDA margin 5,0% 0,1% Depreciation ,0 Operating result Operating margin 3,1% -1,8% Revenues: Operating result: Sunoko: (ad-hoc release ) Südzucker Group, page 47 Revenue declinemainly driven by lower non-quota sugar volumes due to the reduced harvest in Quota sugar sales revenues moderately higher than last year. Mainlydriven by moderate increase in quota sugar prices at the beginning of the SMY 2015/16 in October 2015 and further reinforced since the beginning of the year by an overall positive marketing environment and still higher spot market quota sugar prices. Largest beet sugar producer in Serbia and Balkan region with tonnes of sugar. Strategic partnership via majority participation planned. Term sheet signed. Due diligence and board approval pending.

48 Segment Special Products: Development Q1 2016/17 1 st quarter (mn ) 2016/ /16 +/- in % Revenues ,6 EBITDA ,0 EBITDA margin 14,1% 12,7% Depreciation ,7 Operating result ,7 Operating margin 10,1% 8,4% Revenues: Revenue increaseattributable to continuing positive volume developments, although overall sales revenues were weaker. Operating result: Extended positivetrend from second half of previous fiscal year. Rising volumes in all divisions and steady low raw material costs more than offset lower sales revenues. Südzucker Group, page 48

49 Segment CropEnergies: Development Q1 2016/17 1 st quarter (mn ) 2016/ /16 +/- in % Revenues ,6 EBITDA ,0 EBITDA margin 18,9% 12,3% Depreciation ,2 Operating result ,6 Operating margin 13,0% 7,6% Revenues: Revenue decrease due to decrease in ethanol sales revenues andmissingvolumesfromensus. Operating result: On the one hand decrease in ethanol sales revenues and on the other hand lower net raw material and energy costs. Last year s first quarter burdened by scheduled maintenance at the Wanze/Belgium factory. Südzucker Group, page 49

50 Segment Fruit: Development Q1 2016/17 1 st quarter (mn ) 2016/ /16 +/- in % Revenues ,8 EBITDA ,4 EBITDA margin 10,3% 9,5% Depreciation ,3 Operating result ,1 Operating margin 7,5% 6,5% Revenues: Increase due to recovery of fruit juice concentrates sales revenues and extended positive volume trend in fruit preparations. Operating result: Sales revenues development leads to margin recovery in fruit juice concentrates. Fruit preparations with decline in sales revenues, but earnings improvement due to lower costs and volume increase. Südzucker Group, page 50

51 Income statement (I) 1 st quarter (mn ) 2016/ /16 +/- in % Revenues ,3 Operating result ,1 Restructuring costs/special items ,5 Result from companies consolidated at equity ,3 Result f rom operations ,8 Financial result > 100,0 Earnings before income taxes ,1 Restructuring costs/special items: Segment specialproducts: Expensesrelatedtothe test phase and/or trial runs of various components at wheat starch plant in Zeitz. Segment CropEnergies: Same aslast year, expensesforfixedcostsoftemporarilyclosedbioethanolfactoryat British site in Wilton. Income from companies consolidated at equity: Income from companies consolidated at equity contains the sugar segment's total of 5 (3) million which relates mainly to its share of earnings from British trading company ED&F Man Holdings Ltd., StudenGroup and joint-venture distributor Maxi S.r.l. The special products segment's total includes 6 (6) million for its share of earnings from HungranaGroup's starch and bioethanol businesses. Financial result: Financial result decreased to -12 (-5) million. Net interest expense was reported at -6 (-8) million. The other financing activities item was negative at -6 (3) million mainly due to depreciation of a current financial asset at AGRANA Fruit in Ukraine. Südzucker Group, page 51

52 Income statement(ii) 1 st quarter (mn ) 2016/ /16 +/- in % Earnings bef ore income taxes ,1 Taxes on income ,4 Net earnings for the year ,0 of which attributable to Südzucker AG shareholders > 100 of which attributable to hybrid capital ,7 of which attributable to minority interests ,2 Earnings per share ( ) 0,26 0,10 > 100 Taxeson income: Tax rate was 25 % (27) % Minority interests: The co-owners of AGRANA and CropEnergies account for most of the other minority interests share of net earnings Earningsper share(eps): Increasesto0.26 (0.10) Südzucker Group, page 52

53 Cash flow statement 1 st quarter (mn ) 2016/ /16 +/- in % Cash h flow ,4 Increase (-)/ Decrease (+) in working capital ,6 Investments in fixed ass ets Sugar segment ,4 Special products segment ,8 CropEnergies segment ,9 Fruit segment ,9 Total investments in fixed assets ,6 Investments in financial assets/acquisitionss acquisitions Total inves tments ,8 Increases in stakes held in s ubsidiaries Capital increas e/ decreas e Dividends paid Cashflow: Cashflow reaches 7.8 (6.3) % of revenues. Working Capital: Cash outflow of -253 million from working capital mainly attributable to beet payment related liabilities from the 2015/16 campaign. Only partly covered by the sale of sugar inventories. Investments: Sugar: Südzucker Group, page 53 Investments in improvements of logistics efficiency. Special products:mainly construction of wheat starch factory in Zeitz and expanding capacity of starch plant in Aschach. CropEnergies: Optimization of production facilities. Fruit: Mainly in fruit preparations area.

54 Balance sheet (mn ) 31 May May /- in % Ass ets Non-current assets ,5 Current assets ,9 Total assetss ,9 Liabilities and sharehol ders' equity Shareholders' equity ,6 Non-current liabilities ,1 Current liabilities ,1 Total liabilities and s hareholders' equity ,9 Net financial debt ,5 Equity ratio 57% 55% Net financial debt in percent of equity (gearing) 16% 18% Current assets: Reduction of 254 million. Main reason is reduction in inventories in segment sugar. Net financial debt: Reductionof87 million. This represents16 (18) % ofequitycapital. Südzucker Group, page 54

55 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights Q1 2016/17 page Outlook 2016/17 page Appendix Long-term development and key figures page 65 Additional information page 77 Südzucker Group, page 55

56 Cost savings and other measures* Capex(mn mn ) Cost savings(mn mn ) ~120 ~100 ~35 ~70 ~ <300 ~40 ~10 ~25 ~70 ~85 ~30 ~ / / /17e 2017/18e 2014/ / /17e 2017/18e Segment sugar Other segments * Current status of the continuous process of cost savings and other measures Südzucker Group, page 56

57 Outlook 2016/17 (I) Revenues 2015/ /17e Operating Result 2015/ /17e Sugar 2.9 bn -79 mn positive Special Products 1.8 bn 171 mn CropEnergies* 658 mn mn 87 mn mn Fruit 1.1 bn 62mn > prev. year Group bn bn 241 mn mn Südzucker Group, page 57 * Re-start ofensusnot yetincludedin outlook

58 Outlook 2016/17 (II) : Other key figures 2015/ /17e EBITDA EBITDA 518 mn mn Capex Net Financial Debt RoCE 371 mn 555 mn 4.2 % mn mn > prev. year Cash flow 480 mn > prev. year Cash flow/ Revenues 7.5 % > prev. year Equity ratio 55.0 % > prev. year Südzucker Group, page 58

59 Outlook 2016/17 (III)*: Further improvement of financial key figures 1,632 Net Financial Debt Cash Flow 1, mn > prev. year 2008/ / / / / / / / /17e NFD/CF 3.2x 1.9x 1.4x 1.0x 0.5x 0.8x 1.5x 1.2x x Liquidity (mn mn ) 1,740 2,452 2,184 2,175 2,648 2,444 2,417 2,451 ~2,400 * IFRS 11 adjusted since 2013/14 Südzucker Group, page 59

60 Summary: Financial Year 2016/17e Sugar Special Products CropEnergies Fruit EU framework reduces latitude until 2017, e.g. volume limit, minimum beet price, export restrictions Improvement of market environment in 2016/17 Positive earnings for 2016/17 expected Expectation of difficult transition period into the post-2017-era remains Decrease in earnings level, but still high profit level despite startup losses of new starch factory Zeitz Decrease in earnings level, but still high profit level despite ongoing volatile ethanol sales revenues. Effects of Ensus re-start not yet included Revenues and earnings increase due to positive sales volume and sales revenues development Group Well diversified portfolio Increasing profitability Strong financial ratios Südzucker Group, page 60

61 Midterm Outlook (I): Group Operating Result Fruit Special Products Crop Energies Volume growth parallel to market growth Cost savings Market growth Further potential via Ensus ~ 550 mn mn Sugar Commissioning Zeitz Market growth Cost savings 2016/17e Stopof marketrestrictionsfrom 2017, e.g. volume limits, minimum beet prices, exports Full capacity utilization/cost savings Market equilibrium 2019/20e Megatrends intact (population growth, increase in per-capita income,..) Südzucker Group, page 61

62 Midterm outlook(ii): Increasein excess cash Capex(mn ) EBITDA (mn ( mn ) ~850 Room for manoeuvre ~ < Main- tenance < / / /17e 2019/20e ~ / / /17e 2019/20e 2019/20e Capex(mn ) End of investment cycle and increase in EBITDA/Cash flow generate rising excess cash and room to manoeuvre Südzucker Group, page 62

63 Executive Summary Diversifiedbusinessmodelsupportsgroupin ongoingvolatile environment Turnaround in segment sugar Solid development in segments special products, CropEnergies and fruit Largely completed capacity build-up as well as capacity reserves are basis for further volume increase Increasing excess cash improve room to manouevre Continuation of solid financing policy Maturity Balance sheet ratios Liquidity Financial ratios Investment Grade Rating Südzucker Group, page 63

64 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights Q1 2016/17 page Outlook 2016/17 page Appendix Long-term development and key figures page 65 Additional information page 77 Südzucker Group, page 64

65 Financing maturity profile (as asof 31 May 2016) April 2017/19/21/22 Agrana promissory note, 126 mn March % Bond 2011/2018, 400 mn 2018/20/21 Syndicated loan, mn Perpetual Hybrid Bond 2005/perpetual, 700 mn Issuer call right since 30 June 2015 at the earliest. Pursuant to 6 (5) and (6) of conditions of issue the exercise of the call right is subject to having issued, within the twelve month precedingthe redemption becoming effective, replacement capital (parity and/or junior securities and/or shares) against issue proceeds at least equal to the amounts payable upon redemption. Perpetual Commercial Paper-Program, perpetual, 600 mn Drawnlines: 219 mn Südzucker Group, page 65

66 Südzucker withstrong capital market presence (mn ) Bonds 33% 7% Financial liabilities* 60% Liabilities to banks Others Bonds Due date Coupon Nominal value Z&S** (86%) Zucker Invest GmbH (10%) Südzucker indirectvia Z&S (43%) Agrana Share Südzucker SZVG* (56%) Südzucker direct(~7%) Free float (7%) SZVG* (7%) Free float (34%) Crop Energies Südzucker (69%) Free float (24%) * Süddeutsche Zuckerrübenverwertungs-Genossenschaft eg ** Z&S Zucker und Stärke Holding AG (~50% Südzucker, ~50% ZBG (Zucker-Beteiligungsgesellschaft m.b.h.)) Key figures asof 22 July 2016 Bond 2011/ ,125% 400 Hybrid bond 2005/perpetual ** *** 700 * as of 29 February 2016 incl. hybrid bond ** Since30 June 2015: bondcanbecalledandredeemedquarterlyat nominal value *** Since 30 June 2015: quarterly variable interest payment, 3M Euribor plus 3.10 % p.a. Market capitalization: 4.46 bn (MDAX rank 25) Free-float market cap.: 1.96 bn (MDAX rank 27) Share-turnover(12 m Jun 2016):2.1 bn (MDAX rank 34) -trading volume/day(12 months): ~1.1 mn shares Südzucker Group, page 66

67 Long-term development(i)*: Group (mn ) 2006/ / / / / / / / / / /17e Revenues EBITDA EBITDA-Margin 11,8% 8,5% 8,3% 11,3% 12,6% 14,5% 15,8% 11,8% 6,7% 8,1% Operating Result Operating Margin 7,3% 4,0% 4,4% 7,0% 8,5% 10,7% 12,3% 8,3% 2,7% 3,8% Income from operations (EBIT) -129** Earnings before income taxes (EBT) Net earnings thereof to SZ AG shareholders Market capitalization Closing price on February 28/29 15,97 14,50 13,66 17,06 19,90 21,75 33,55 20,15 13,63 13,88 Earnings per share ( ) -1,72 0,10 0,86 1,06 1,33 1,99 3,08 1,37 0,10 0,53 Dividend per share ( ) 0,55 0,40 0,40 0,45 0,55 0,70 0,90 0,50 0,25 0,30 Cash flow >prev. Year Investments total Capital Employed >prev. Year RoCE 8,8% 4,7% 5,2% 7,5% 9,8% 13,2% 16,3% 10,6% 3,1% 4,2% >prev. Year Total Assets Equity Equity Ratio 42,4% 41,7% 41,9% 46,5% 50,8% 47,9% 53,7% 53,4% 52,6% 55,0% >prev. Year Net Financial Debt (NFD) Gearing (NFD/Equity) 24,1% 45,7% 50,5% 30,9% 23,2% 19,9% 9,8% 11,6% 13,3% 12,4% NFD/Cash flow 1,5x 3,0x 3,2x 1,9x 1,4x 1,0x 0,5x 0,8x 1,5x 1,2x 0,8-1,0x *** **** * IFRS 11 adjusted; since 2013/14 income from companies consolidated at equity included in EBIT ** Extraordinary impact from Goodwill impairment loss *** Proposal **** Capex (excluding investments in financial assets) Südzucker Group, page 67

68 Long-term development(ii)*: Segments Segment Sugar (mn ) 2011/ / / / /16 Revenues EBITDA EBITDA-Margin 16,8% 19,6% 14,3% 4,1% 1,7% Operating Result Operating Margin 13,7% 16,7% 11,2% 0,2% -2,7% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 17,1% 22,4% 13,7% 0,2% -2,6% Segment Special Products (mn ) 2011/ / / / /16 Revenues EBITDA EBITDA-Margin 12,8% 11,5% 9,0% 11,2% 13,7% Operating Result Operating Margin 8,3% 7,1% 4,9% 7,0% 9,5% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,7% 9,5% 6,3% 8,7% 11,9% Segment CropEnergies (mn ) 2011/ / / / /16 Revenues EBITDA EBITDA-Margin 15,9% 18,5% 9,5% 3,3% 18,5% Operating Result Operating Margin 10,0% 13,5% 4,9% -1,5% 13,2% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,2% 17,3% 6,4% -2,2% 17,7% Segment Fruit (mn ) 2011/ / / / /16 Revenues EBITDA EBITDA-Margin 7,9% 7,3% 9,0% 9,8% 9,4% Operating Result Operating Margin 4,1% 4,0% 5,5% 6,1% 5,7% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 4,7% 5,0% 8,1% 8,4% 7,5% * IFRS 11 adjusted; since 2013/14 income from companies consolidated at equity included in EBIT Südzucker Group, page 68

69 Long-term development(iii)* Cash flow (mn ) Revenues (bn ) > prev. year Net Financial Debt (mn ) Operating Result (mn ) NFD/CF 3,0x 1,508 1,632 1, ,0x 3,2x 1,9x 1,4x 1,0x 0,5x 0,8x 1,5x 1,2x x * IFRS 11 adjusted since 2013/14 Sugar Special Products CropEnergies Fruit Südzucker Group, page 69

70 Return on Capital Employed(RoCE RoCE) 2015/ /15 (mn ) RoCE RoCE Op. Result Cap. Employed Südzucker Group 4,2% 3,1% Sugar -2,6% 0,2% Special Products 11,9% 8,7% CropEnergies 17,7% -2,2% Fruit* 7,5% 8,4% * Adjustment segment fruit: Goodwill book value redirected to participation level of parent company Sugar: Significant decrease follows earnings decrease Special products: Significant increase follows earnings increase CropEnergies: Fruit: Group: Increase solely based on earnings increase Decrease due to higher capital employed and earnings deacrease Significant increasein earnings and stable capital employed generates significant increasein RoCE Südzucker Group, page 70

71 Return on Capital Employed(RoCE RoCE)* Capital Employed (mn ) 5,707 5,950 5,873 5,877 5,791 > prev. year Group RoCE (%) 13.2 % 16.3 % 10.6 % 3.1 % 4.2 % >prev. year 2011/ / / / / /17e Sugar 17.1% 22.4% 13.7% 0.2% -2.6% > prev. year RoCE Special Products 10.7% 9.5% 6.3% 8.7% 11.9% < prev. Year CropEnergies 10.2% 17.3% 6.4% -2.2% 17.7% < prev. Year Fruit 4.7% 5.0% 8.1% 8.4% 7.5% > prev. year Südzucker Group, page 71 * IFRS 11 adjusted since 2013/14

72 Breakdown of Capital Employed(2015/16) Breakdown by assets Breakdown by segments 22% 14% 8% 49% 5,791 mn 5,791 mn 53% 29% 25% Goodwill Working Capital Fixed assets Sugar CropEnergies Special Products Fruit Südzucker Group, page 72

73 Liquidity profileend end of period* (mn ) Q1 2016/17 Q4 2015/16 Q3 2015/16 Q2 2015/16 Q1 2015/16 Net financial debt Cash & Cash equivalents / securities Gross financial debt Long-term financial ial debt Short-term financial debt Bank credit lines undrawn Syndicated loan undrawn Syndicated loan Agrana undrawn Commercial paper program undrawn Bank credit lines i (undrawn) Cash & cash equivalents / securities urities Syndic ated loan (undrawn) Commercial al paper (undrawn) = Total liquidity reserves * IFRS 11 adjusted Südzucker Group, page 73

74 Group balance sheet (mn mn ) 1,837 (21.7 %) Assets Other current assets 1,702 (20.9 %) 2,128 (25.1 %) Liabilities Current liabilities 1,850 (22.7 %) 2,128 (25.1 %) Inventories 1,897 (23.3 %) 1,885 (22.3 %) Non-current liabilities 1,811 (22.3 %) 4,510 (53.2 %) Non-current assets 4,534 (55.8 %) 4,461 (52.6 %) Equity 4,473 (55.0 %) Total 8,474 8,133 Total 8,474 8,133 Südzucker Group, page 74

75 Group balance sheet (mn ) (mn ) Intangible assets ,6% ,0% Fixed assets ,7% ,9% Shares in companies consolidated at equity 333 4,1% 333 3,9% Other investments and loans 22 0,3% 22 0,3% Securities 19 0,2% 20 0,2% Receivables and other assets 14 0,2% 25 0,3% Deferred tax assets 133 1,6% 133 1,6% Non-current assets ,7% ,2% Inventories ,3% ,1% Trade receivables and other assets ,3% ,4% Current tax receivables 36 0,4% 39 0,5% Securities 126 1,5% 126 1,5% Cash and cash equivalents 459 5,6% 536 6,3% Current assets ,3% ,8% Equity attributable to shareholders of SZ AG ,8% ,9% Hybrid capital 653 8,0% 684 8,1% Other minority interest 661 8,1% 652 7,7% Shareholder's equity ,4% ,6% Provisions for pensions and similar obligations 798 9,8% 826 9,7% Other provisions 103 1,3% 109 1,3% Non-current financial liabilities 734 9,0% 774 9,1% Other liabilities 16 0,2% 18 0,2% Tax liabilities 99 1,2% 79 0,9% Deferred tax liabilities 62 0,8% 79 0,9% Non-current liabilities ,3% ,2% Other provisions 209 2,6% 230 2,7% Current financial liabilities 425 5,2% 500 5,9% Trade payables and other liabilities ,2% ,3% Current tax liabilities 61 0,7% 99 1,2% Current liabilities ,7% ,1% Total assets ,0% ,0% Total liabilities and shareholders' equity ,0% ,0% Südzucker Group, page 75

76 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights Q1 2016/17 page Outlook 2016/17 page Appendix Long-term development and key figures page 65 Additional information page 77 Südzucker Group, page 76

77 Revenue by region 2015/16 Rest of world (18 %) Germany (24 %) 6,387 mn EU 13 (14 %) EU 15 (44 %) Südzucker Group, page 77

78 Segment Sugar: CampaignSMY 2015/16 Beet growers 40,300 (41,300) Beet acreage: 350,000 (405,000) ha Sugar factories(incl. refineries): 31 (32) Beet processing: 23.7 (34.0) mn tons Sugar production: 4.1 (5.3) mn tons thereof from beets: 3.8 (5.0) mntons thereof raw sugar raffination: 0.4 (0.3) mn tons Südzucker Group, page 78

79 Südzucker well positioned in Beet Belt Germany Poland Belgium Czech Republic Slovakia Moldova France Austria Hungary Romania Südzucker Group, page 79