Südzucker Group Company Presentation

Transcription

1 Südzucker Group Company Presentation Hanau, 25 October 2018 Bernhard Juretzek (Manager Investor Relations) Südzucker Group, page 1

2 Südzucker Group at a glance Global operating German food group with long-standing corporate history and diversified business model: Group Revenues 7.0 bn * 1837: Foundation of first sugar company 1926: Foundation of Süddeutsche Zucker-AG ~ 100 production facilities* ~ 18,500 employees, worldwide* Majority shareholder / Key shareholders: Sugar (43%) Fruit (17%) Süddeutsche Zuckerrübenverwertungs-Genossenschaft eg: 57 % Zucker Invest GmbH: 10 % Stock exchange listing in Germany since 1926 SDAX-member Trading volume*: ~ 1.2 mn shares/day Sustainable investment grade rating CropEnergies (11%) Special Products (29%) * Financial year 2017/18 Südzucker Group, page 2

3 Südzucker Group: Key ratios 2017/18 Revenues EBITDA Operating Result 7.0 bn prev. year: 6.5 bn 757 mn prev. year: 709 mn 445 mn prev. year: 426 mn Net Financial Debt/ Cash flow 1.22x prev. year: 0.65x Cash flow 693 mn prev. year: 634 mn Cash flow/revenues 9.9 % prev. year: 9.8 % Südzucker Group, page 3

4 Diversification segments gain in importance Revenues (in mn ) 4,000 3,000 2,000 1,000,0 2001/ / / / /18 Operating Result (in mn ) Südzucker Group, page 4 Sugar Non-Sugar

5 Südzucker products share your everyday life Groceries / Ingredients Other applications Südzucker Group, page 5

6 Strong market positions in all business areas Sugar # 1 in Europe Specialty starches and Isoglucose One of the leading producers in Europe Fruit preparations # 1 worldwide Portion packs # 1 in Europe Fruit juice concentrates # 1 in Europe Bioethanol # 1 in Europe Frozen pizza # 1 in Europe and USA (private label) Functional Food # 1 globally for functional Chicoree-/Riceproducts, Isomalt/Palatinose Südzucker Group, page 6

7 Portfolio benefits from long term megatrends mn t USD 8, ,000 12,000 per capita income 6,000 population growth worldwide 178, ,000 8,000 worldwide 4,000 sugar consumption worldwide 98,000 58,000 4,000 emerging markets 2,000 18,000,0 Sources: United Nations, F.O. Licht, ERS International Macroeconomic Data Set Source: ERS International Macroeconomic Data Set mn barrel / day USD / barrel mn t oil consumption crude oil price ,000,800,600,400,200 global animal feed production Source: BP, EIA Südzucker Group, page 7 Source: USDA

8 under volatile and cyclical market conditions 700 White sugar ( /t) 350 Wheat / Maize ( /t) Brent (USD/barrel) 800 Ethanol ( /m³) Südzucker Group, page 8 and within specific political frameworks

9 Segment Sugar Financial year 2017/18: Revenues: 3.0 bn EBITDA: 278 mn Op. Result: 139 mn Employees: 7,034 Factories: 31 ~52% Südzucker Group, page 9

10 The way into the new sugar world After 50 years Sugar market regime expired on 30 Sept No quotas, no sugar beet minium prices No more export limitations Import tariffs remain in place Difficult transition years as communicated Higher competition intensity at the beginning Price- and volume volatility of world market with even higher impact on EU market Südzucker well positioned Largest producer with focus on best beet areas Efficient, pan-european logistics structure Strong cooperations (e.g. ED&F Man) Südzucker Group, page 10

11 Supply and demand as main drivers Sugar price development ( /t) World market price* EU price ex works Δ EU vs. World market price * World market price ex works: without transportation and other costs EU and world market: 2015/16: significant inventory decline first time since 6 years 2016/17: further inventory decrease leads to low inventory level 2017/18e: inventory increase Production: EU +3.6 mn t following end of quota system India mn t following draught in prev. year Thailand +4.7 mn t Brasil mn t via higher ethanol share and lower cane yields 2018/19e: slight production decrease, but further inventory increase expected Production: EU: ~ -2.1 mn t Thailand: ~ -0.5 mn t India: ~ +2.4 mn t Brasil: ~ -0.3 mn t Südzucker Group, page 11

12 Strategy Segment Sugar Defend and extend EU market position Cost savings across the whole value chain Further centralization of administration Maximum utilization Factory capacity Sugar Extend production and distribution volumes Usage of ED&F Man participation potential Advance internationalization/ open up new markets Südzucker Group, page 12

13 Segment Special Products Financial year 2017/18: Revenues: 2.0 bn EBITDA: 255 mn Op. Result: 158 mn Employees: 5,697 Factories: 26 Südzucker Group, page 13

14 Segment Special Products: Overview Leading market positions in all four divisions Sustainable high cash flow quality Very sound fundamental development Growth based on global megatrends: unchanged trend to alternative and functional food ingredients further increase in demand for convenience products Starch* 38 % Revenue split 2017/18 PortionPack 6 % 1,997 mn Freiberger 32 % BENEO (Functional Food) 24 % unbroken global demand growth for animal feed (e.g. Gluten) Continuous capacity adjustment follows market growth Operating Result 2017/ * incorporates AGRANA bioethanol and starch activities 2013/ / / / /18 Südzucker Group, page 14

15 Division Freiberger: Market entry USA (I) USA largest frozen pizza market (5.2 bn USD) worldwide with further growth potential Private label share EU >50 % Private label share USA ~16 % Acquisition of Richelieu Foods: Market leader in private label pizza segment ( B2B ) USA Main product categories: frozen and chilled pizza and pourables Revenues: ~ 300 mn (2017) 5 production sites across the USA; distribution across the USA ~ 900 employees Wheeling, Illinois Südzucker Group, page 15

16 Division Freiberger: Market entry USA (II) Market leader private label pizza market in Europe and USA 11 production sites in EU (6) and in USA (5) Employees: ~ 3,500 Pizzas per day: ~ 3.5 mn Revenues: ~ 1 bn # 1 Europe # 1 USA Strong platform for further growth Production facility Public Warehouses Pizza Public Warehouses Pourables Südzucker Group, page 16

17 Division Starch* as further investment focus 6 production sites and distribution within EU Leading market position in main product categories Ongoing growth for speciality starches Worldwide strongly growing demand for animal feed Mandatory ethanol blending within EU High investment volume (~ 400 mn ) in current cycle: New starch factory Pischelsdorf (2013) New starch factory Zeitz (2016) Extension starch factory Aschach (2017) Extension starch factory Pischelsdorf (2020) Aschach (A) Production Starch Zeitz (DE) Gmünd (A) Pischelsdorf (A) Szabadegyhaza (HU) Production Bioethanol Tandarei (RO) * incorporates AGRANA bioethanol and starch activities Südzucker Group, page 17 Zeitz

18 Strategy Segment Special Products BENEO Usage of global platform, open up new markets; product innovations Portion Pack Europe Extension of EU No. 1 position; expansion of product portfolio Special Products Starch Extension of successful niche strategy; increase market share via continuous capacity increase Freiberger Further internal and external growth; e.g. Richelieu Foods Südzucker Group, page 18

19 Segment CropEnergies Financial year 2017/18: Revenues: 808 mn EBITDA: 111 mn Op. Result: 72 mn Employees: 414 Factories: 4 Südzucker Group, page 19

20 Segment CropEnergies: Overview 4 production sites in EU; distribution sites in EU, North and South America Main product categories: Bioethanol as fuel and traditional applications (1.3 mn m³ p.a.) Food and animal feed (>1 mn t p.a.) Megatrend renewable energy EU target transport: 2020: 10 % from renewable energy sources 2030: at least 14 % renewable energies Reduction of greenhouse gas emissions Higher independency from imported oil Sustainable raw materials from European agriculture and complete utilization Houston Santiago de Chile São Paulo Wilton Rotterdam Amsterdam Loon-Plage Wanze Zeitz Production facility Tank storage Distribution Südzucker Group, page 20

21 Strategy Segment CropEnergies Further efficiency gains Strengthen leading market position Expand multi-site approach CropEnergies Full usage of production capacities Expand diversification Enforce R & D activities Südzucker Group, page 21

22 Synergy example: Zeitz site five composite factories Starch factory CO 2 - Liquefaction Sugar factory Neutral alcohol factory Bioethanol factory Südzucker Group, page 22

23 Segment Fruit Financial year 2017/18: Revenues: 1.2 bn EBITDA: 113 mn Op. Result: 76 mn Employees: 5,370 Factories: 42 Südzucker Group, page 23

24 Segment Fruit: Overview Division fruit preparations 29 production sites globally; distribution in more than 80 countries Global market leader for fruit preparations (market share >30 %) Division fruit juice concentrates 13 production sites in Europe and one in China European market leader for fruit juice concentrates Trend towards fruit juices and bio-products unchanged Fruit preparations (AGRANA Fruit S.A.S) Fruit juice concentrates (AUSTRIA JUICE GmbH) Südzucker Group, page 24

25 Strategy Segment Fruit Further usage of global growth trends Usage of internal/external growth options Exploitation of shared group customer base Fruit Development of innovations Further cost saving measures Market entry India / second factory China Südzucker Group, page 25

26 Outlook 2018/19 Revenues (in ) 2017/ /19e Operating Result (in ) 2017/ /19e Sugar 3.0 bn 139 mn -150 to -250 mn Special Products 2.0 bn 158 mn ~ prev. year CropEnergies 808 mn 670 to 700 mn* 72 mn 15 to 35 mn* Fruit 1.2 bn 76 mn Group 7.0 bn 6.6 to 6.9 bn 445 mn 25 to 125 mn * Guidance adaptation from CropEnergies AG on 22 October 2018 Südzucker Group, page 26

27 Südzucker: Value-driven, long term growth Attractive dividend return Strong balance sheet and financial ratios Leading market positions in all business areas High cash flow generation At least 2 difficult transition years following sugar market liberalisation Südzucker sustainably will benefit from megatrends Südzucker Group, page 27

28 Thank you for your attention! Südzucker Group, page 28

29 Investor Relations Financial calender 10 January 2019 Q3 Quarterly Statement 2018/19 24 April 2019 Preliminary figures financial year 2018/19 16 May 2019 Press and analysts conference fiscal 2018/19 11 July 2019 Q1 Quarterly Statement 2019/20 18 July 2019 Annual general meeting for fiscal 2018/19 10 October 2019 Q2 Half-year financial report 2019/20 14 January 2020 Q3 Quarterly Statement 2019/20 Contact Nikolai Baltruschat Head of Investor Relations Tel.: +49 (621) Bernhard Juretzek Manager Investor Relations Tel.: +49 (621) Sandra Kochner Assistant Tel.: +49 (621) Südzucker AG Maximilianstrasse Mannheim, Germany Südzucker Group, page 29

30 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 2017/18 annual report on pages 83 to 94 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 30

31 Südzucker Group, page 31