Südzucker Group Nikolai Baltruschat (Head of Investor Relations) Investor Roadshow Helsinki / Copenhagen November 29, 2011

Transcription

1 Südzucker Group Nikolai Baltruschat (Head of Investor Relations) Investor Roadshow Helsinki / Copenhagen November 29, 2011

2 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 17 CropEnergies page 25 Fruit page Financial Highlights H1 2011/12 page Outlook 2011/12 page Appendix Long-term development and key figures page 50 Additional information page 52 Südzucker Group, page 2

3 Südzucker Group at a glance* Global operating German food group Production facilities: ~ 100 Employees: Revenues: 6.2 bn (70 % generated outside Germany) Operating profit: 519 mn Stock exchange listing in Germany Market capitalisation ~ 4 bn Free float 34% MDAX-member Trading volume: ~ 1 mn shares/day Revenues 6.2 bn Sugar (53%) Special products (26%) Fruit (14%) CropEnergies (7%) *basis FY 2010/11 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 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 Planned merger with Ybbstaler to enhance growth and profitability Südzucker Group, page 4

5 Back on track after successful transformation Pre-Reform 2003/04 Transition period EU sugar policy 2006/ /10 Diversification Non-sugar activities 2003/ / /12e * Revenues 26% 4.6 bn 74% ~6.8 bn Op. Profit 30% 479 mn 70% ~750 mn * Revised upwards: ad-hoc-release on November 22, 2011 Südzucker Group, page 5 Sugar Special Products Fruit CropEnergies

6 Return on Capital Employed (RoCE) 2007/ / / / /12e Sugar 2.2% 5.0% 7.5% 10.3% Segments Special Prod. CropEnergies 9.0% 8.4% 10.5% 10.0% 8.2% 2.3% 10.8% 8.7% Fruit 5.6% neg. 5.5% 6.7% RoCE 4.7% 5,2% 7.5% 9.8% Group Operating Profit 233 mn 258 mn 403 mn 519 mn Capital Employed 5,005 mn 4,923 mn 5,374 mn 5,314 mn Südzucker Group, page 6

7 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 17 CropEnergies page 25 Fruit page Financial Highlights H1 2011/12 page Outlook 2011/12 page Appendix Long-term development and key figures page 50 Additional information page 52 Südzucker Group, page 7

8 Segment Sugar (mn ) 2010/ / / /08 Revenues EBITDA EBITDA-Margin 12,1% 10,5% 7,7% 6,1% Operating profit Operating Margin 8,6% 6,9% 4,1% 1,7% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,3% 7,5% 5,0% 2,2% Südzucker Group, page 8

9 Sugar market* World Market EU Production EU Demand World Market Quota sugar ~16-17 mn t CAGR 2-3% Demand** 159 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** 167 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 2010/11, July 2011 Südzucker Group, page 9

10 EU quota sugar production - sugar marketing year* 2010/11 Market share** EU quota sugar production Südzucker quota share per country (in %) Südzucker Group (24 %) Nordzucker (15 %) Great Britain Poland Germany 25 British Sugar (11 %) Belgium Czech Republic 39 Slovakia Moldova Tereos (11 %) 20 France 100 Austria 100 Hungary 35 Rumania All others (32 %) Pfeifer & Langen (8 %) Portugal Italy Bosnia- Hercegowina Greece Bulgaria Spain * Sugar marketing year: Oct. Sep. ** Südzucker estimates Südzucker Group, page 10 Südzucker distribution activity Non-EU production

11 Südzucker: 32 factories well positioned in Beet Belt Germany Poland Belgium Czech Republic Slovakia Moldova France Austria Hungary Romania Südzucker Group, page 11

12 Mauritius cooperation strengthens distribution power in Europe 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 12

13 Participation in ED&F Man (I): at a glance Key Figures 2009/10* Transaction overview Total sales 13.6 mn t Revenues 7.9 bn USD Profit from ordinary activities 122 mn USD Net Profit 30 mn USD Equity 625 mn USD > 3,500 employees in 61 countries Private, employee owned company Purchase 25% - 1 share via capital increase Purchase price 255 mn USD At equity accounting Pro rata earnings contribution in 2011/12 dependent on closing date *Financial Year ending Südzucker Group, page 13

14 Participation in ED&F Man (II): global footprint Sugar: Second largest trader handled 8.5 mn t in 2009/10 In addition participations in production and refining capacities Coffee: global sourcing and trading with high quality coffee blends Liquid Products: Molasses trading, storage and logistic services Others: tropical oils, bio fuels, shipping, trading advisory and hedging services Transaction as platform to generate synergies and for further international growth Südzucker Group, page 14

15 Segment Sugar: Outlook 2011/12 Revenues Higher sales revenues expected Non-quota sugar of campaign 2010 to limited extent marketable in EU food market Lower non-quota sugar exports, especially in H1 Revenues above prior year s level Operating Profit Omission of additional earnings from extra non-quota sugar exports in Q1 2010/11 already compensated in H1 2011/12 Positive impulse from first time opportunity to market non-quota sugar to a limited extend within EU food market Significant increase in operating profit Südzucker Group, page 15

16 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 17 CropEnergies page 25 Fruit page Financial Highlights H1 2011/12 page Outlook 2011/12 page Appendix Long-term development and key figures page 50 Additional information page 52 Südzucker Group, page 16

17 Segment Special Products (mn ) 2010/ / / /08 Revenues EBITDA EBITDA-Margin 13,8% 14,9% 12,1% 12,8% Operating profit Operating Margin 9,1% 9,8% 7,6% 8,3% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,8% 10,5% 8,4% 8,8% Südzucker Group, page 17

18 Segment Special Products: at a glance 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/ /11: ~8 % 1,161 Starch* 37% 1,283 1,427 Revenue split 2010/11 PortionPack 9% 1,575 mn 1,396 1, / / / / / /12e Freiberger 30% BENEO (Functional Food) 24% * incorporates AGRANA bioethanol and starch activities Südzucker Group, page 18

19 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 19

20 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 56 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 20

21 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 established Westhoughton Berlin Osterweddingen Production facility Muggensturm Oberhofen Muggensturm Südzucker Group, page 21

22 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 22

23 Segment Special Products: Outlook 2011/12 Revenues Revenue increase in all divisions Significant increase in revenues Operating Profit Increase in volumes will not be enough to compensate for full year effect of raw material cost increase Prior year s operating profit level not achievable Südzucker Group, page 23

24 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 17 CropEnergies page 25 Fruit page Financial Highlights H1 2011/12 page Outlook 2011/12 page Appendix Long-term development and key figures page 50 Additional information page 52 Südzucker Group, page 24

25 Segment CropEnergies * (mn ) 2010/ / / /08 Revenues EBITDA EBITDA-Margin 17,4% 9,2% 9,0% 17,2% Operating profit Operating Margin 10,5% 3,3% 5,7% 12,2% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 8,7% 2,3% 8,2% 10,0% *since 2008/09 reported as separate segment Südzucker Group, page 25

26 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 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 Tank storage Duisburg Zeitz Südzucker Group, page 26

27 Segment CropEnergies: at a glance (II) Improvement of political framework European climate and energy package is being implemented Germany: Feasible solutions for implementation of the Biofuel Sustainability Regulation Volume increase of 17% to 705,000 (601,000) m 3 Successful launch of Gluten and ProtiWanze Germany s largest plant for the liquefaction of biogenic CO 2 on stream Increase in profitability and reduction in green house gas emissions at the same time CO 2 is marketed amongst other sectors in the food industry million m3 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/ /11: ~34 % / / / / /12e Südzucker Group, page 27

28 Segment CropEnergies: Outlook 2011/12 Revenues Higher capacity utilization Increase in sales revenues Increase in production and sales volumes Significant increase in revenues Operating Profit Provided that increase in raw material costs is compensated by higher sales revenues significant increase in operating profit Südzucker Group, page 28

29 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 17 CropEnergies page 25 Fruit page Financial Highlights H1 2011/12 page Outlook 2011/12 page Appendix Long-term development and key figures page 50 Additional information page 52 Südzucker Group, page 29

30 Segment Fruit (mn ) 2010/ / / /08 Revenues EBITDA EBITDA-Margin 9,4% 8,9% 4,0% 9,5% Operating profit Operating Margin 5,4% 4,4% neg. 5,1% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 6,7% 5,5% neg. 5,6% Südzucker Group, page 30

31 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) Synergies / Production cost optimisation AGRANA J&F Holding GmbH, Vienna AGRANA Fruit S.A.S. Paris Fruit preparations ~80% of segment revenues ~35% world market share 25 facilities on the globe AGRANA Juice Holding GmbH, Gleisdorf Fruit juice concentrates ~20% of segment revenues ~20% European market share 12 facilities worldwide Südzucker Group, page 31

32 Segment Fruit: Outlook 2011/12 Revenues Fruit preparations and fruit juice concentrates with higher sales revenues Additional growth potential through planned merger of division fruit juice concentrates with Ybbstaler Revenues above previous year Operating Profit Substantial operating profit increase driven by higher sales revenues in fruit juice concentrates division will be offset by declining operating profit in fruit preparations division due to lower volumes and higher commodity costs. Operating profit on prior year s level Südzucker Group, page 32

33 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 17 CropEnergies page 25 Fruit page Financial Highlights H1 2011/12 page Outlook 2011/12 page Appendix Long-term development and key figures page 50 Additional information page 52 Südzucker Group, page 33

34 Group income statement 2 nd quarter 1 st half year (mn ) 2011/ /11 +/- in % 2011/ /11 +/- in % Revenues , ,8 EBITDA , ,5 EBITDA margin 12,4% 11,8% 13,2% 12,3% Depreciation , ,3 Operating profit , ,3 Operating margin 9,6% 8,7% 10,4% 9,2% Restructuring costs and special items , ,0 Income from operations , ,7 Net earnings for the period attributable to Südzucker shareholders , ,0 Earnings per share ( ) (undiluted) 0,28 0,27 3,7 0,76 0,65 16,9 Cash flow , ,6 Investments in fixed assets , ,0 Net financial debt (as of reporting date) ,1 Average number of employees ,2 Südzucker Group, page 34

35 Financial Highlights H1 2011/12 * Group revenues up 9 % to 3,338 (3,068) million Operating profit increased 23 % to 347 (282) million Cash flow up 30 % to 349 (269) million Earnings per share rises 17 % to 0.76 (0.65) Net financial debt on prior year s level at 768 (777) million * H1 group revenues and group operating profit reported on 27 September 2011 Südzucker Group, page 35

36 Segment Sugar: Development 1 st half year 2011/12 2 nd quarter 1 st half year (mn ) 2011/ /11 +/- in % 2011/ /11 +/- in % Revenues , ,3 EBITDA , ,0 EBITDA margin 13,5% 10,2% 14,2% 11,4% Depreciation , ,6 Operating profit , ,1 Operating margin 12,1% 8,7% 12,7% 9,9% Revenues: Operating profit: The increase is primarily due to higher sugar sales in the Eastern European markets. In the first quarter, the increase was masked by the fact that exports did not match the prior year's unusually high volume. The increase was driven mainly by higher sugar sales revenues, especially in the Eastern European markets, as well as higher sales revenues from industrial non-food sugar and exports. Because the EU is a net importer, the significant increase in the world market price is impacting the European market price level. Südzucker Group, page 36

37 Segment Special Products: Development 1 st half year 2011/12 2 nd quarter 1 st half year (mn ) 2011/ /11 +/- in % 2011/ /11 +/- in % Revenues , ,6 EBITDA , ,3 EBITDA margin 10,3% 14,4% 11,7% 15,0% Depreciation , ,4 Operating profit , ,4 Operating margin 6,1% 9,6% 7,5% 10,1% Revenues: Operating profit: The higher revenues were mainly the result of the high sales revenues driven by elevated commodity prices together with excellent volume growth overall, especially in the starch division. Continuing commodity price increases began to have an impact in the second quarter. As expected, not all divisions have as yet been able to fully pass the increases on to the market. Südzucker Group, page 37

38 Segment CropEnergies: Development 1 st half year 2011/12 2 nd quarter 1 st half year (mn ) 2011/ /11 +/- in % 2011/ /11 +/- in % Revenues , ,7 EBITDA , ,3 EBITDA margin 16,6% 20,4% 17,6% 16,2% Depreciation , ,3 Operating profit , ,7 Operating margin 10,6% 13,5% 11,5% 8,7% Revenues: Operating profit: The growth was driven by higher ethanol and byproduct sales revenues as well as higher volumes. While extensive maintenance and optimization work had been undertaken during the prior year's first quarter at both the Wanze and Zeitz factory, routine maintenance was distributed across the first and second quarter during the current financial year. This is why the significant profit rise in the first quarter was offset by a year-over-year profit decline during the second quarter. Significantly higher commodity costs were offset by higher ethanol and byproduct sales revenues. Südzucker Group, page 38

39 Segment Fruit: Development 1 st half year 2011/12 2 nd quarter 1 st half year (mn ) 2011/ /11 +/- in % 2011/ /11 +/- in % Revenues , ,1 EBITDA , ,6 EBITDA margin 9,9% 8,4% 10,3% 9,0% Depreciation , ,5 Operating profit , ,7 Operating margin 6,2% 4,2% 6,8% 5,0% Revenues: Operating profit: The growth was driven primarily by higher sales revenues, which were up as a result of higher commodity prices. However, volumes were lower than the high prior year's levels. Sharply higher profit than the year prior driven mainly by improved margins for fruit juice concentrates. Südzucker Group, page 39

40 Income statement (I) 2 nd quarter 1 st half year (mn ) 2011/ /11 +/- in % 2011/ /11 +/- in % Revenues , ,8 Operating profit , ,3 Restructuring costs and special items , ,0 Income from operations , ,7 Income from companies consolidated at equity ,3 Financial result > ,1 Earnings before income taxes , ,7 Income from companies consolidated at equity: Result includes the company's share of earnings from a joint-venture distributor. Financial result: The deterioration is primarily driven by unrealized currency exchange losses, particularly as a result of the weakening of Poland's zloty, together with lower security valuations. The net interest result improved. Südzucker Group, page 40

41 Income statement (II) 2 nd quarter 1 st half year (mn ) 2011/ /11 +/- in % 2011/ /11 +/- in % Earnings before income taxes , ,7 Taxes on income , ,6 Net earnings for the year , ,3 of which attributable to Südzucker shareholders , ,0 of which attributable to hybrid capital 7 7 0, ,0 of which attributable to minority interests , ,5 Earnings per share ( ) 0,28 0,27 3,7 0,76 0,65 16,9 Taxes on income: The tax rate came in at 23 %. 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 by 17 % to 0,76. Südzucker Group, page 41

42 Cash flow statement 2 nd quarter 1 st half year (mn ) 2011/ /11 +/- in % 2011/ /11 +/- in % Cash flow , ,6 Change in working capital , ,7 Investments in fixed assets Sugar segment , ,2 Special products segment , ,7 CropEnergies segment , ,3 Fruit segment , ,0 Total investments in fixed assets , ,0 Investments in financial assets 7 2 > ,9 Dividends paid , ,6 Cash flow: Investments: The cash flow increase is due to the excellent growth in operating profit. The improved cash availability resulting from the seasonal reduction in working capital was significantly below last year's level. This is primarily due to a slower decline in inventories, higher raw material inventories due to higher prices and an increase in trade receivables in the sugar segment. Continued disciplined capex program with overall investments close to maintenance level. Südzucker Group, page 42

43 Balance sheet (mn ) /- in % Assets Non-current assets ,1 Current assets ,4 Total assets ,2 Liabilities and shareholders' equity Shareholders' equity ,6 Non-current liabilities ,4 Current liabilities ,7 Total liabilities and shareholders' equity ,2 Net financial debt ,1 Equity ratio 51% 53% Net financial debt in percent of equity (gearing) 20% 22% Increase in current assets: Besides an increase in inventories and trade receivables, the 400 mn bond placement in March 2011 has led to a higher cash position. Reduction in non-current and increase in current liabilities: Effects from reclassification of 500 mn bond due in February 2012 and placement of 400 mn bond in March In addition, current bank liabilities rose, of which 105 million is attributable to the reclassification of the variable interest-bearing component of the promissory note, which Südzucker called as per October 17, Südzucker Group, page 43

44 Liquidity profile end of period (mn ) Q2 2011/12 Q1 2011/12 Q4 2010/11 Q3 2010/11 Q2 2010/11 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 Bond placement March 2011: 400 mn ; coupon 4.125%; maturity 2018 Replacement of syndicated loan (maturing in July 2012) by new syndicated loan facility signed in June 2011; 600 mn, maturity 2016 Südzucker Group, page 44

45 Financing maturity profile (I) (as of August 31, 2011) EUR-Bond Hybrid Promissory Note* Convertible Bond mn Commercial Paper Program 600 mn Syndicated Loan (June 2011/16) * Termination of tranche (105 mn ) as of 17th of October Südzucker Group, page 45

46 Financing maturity profile (II) (as of August 31, 2011) February 2012 April 2014* (Placement April 2009) June 2015 June 2016 (Placement June 2009) June 2016 March 2018 (Placement March 2011) Perpetual 5.75% Bond 2002/2012, 500 mn 5.90% German promissory note, 150 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 60 bp, short-term borrowing facility 1 week < 1 year 4.125% Bond 2011/2018, 400 mn Commercial Paper-Program, 600 mn Drawn lines 2011/12 Q2: 0 mn * Termination of tranche (105 mn ) as of 17th of October Südzucker Group, page 46

47 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 17 CropEnergies page 25 Fruit page Financial Highlights H1 2011/12 page Outlook 2011/12 page Appendix Long-term development and key figures page 50 Additional information page 52 Südzucker Group, page 47

48 Group: Outlook 2011/12 Sugar Special Products CropEnergies Revenues 2010/ /12e 3.3 bn 1.6 bn 437 mn Operating Profit 2010/ /12e 282 mn 144 mn 46 mn Fruit 870 mn 47 mn Group 1) 6.2 bn ~ 6.8 bn 519 mn ~ 750 mn Südzucker Group, page 48 Investments 2) Net Financial Debt 3) ~ 300 mn ~ mn 1) Revised upwards: ad-hoc-release on November 22, ) excl. investments in financial assets ED&F Man 255 mn USD closing dependent on approval of anti-trust authorities 2) incl. investment in ED&F Man; excl. Ybbstaler

49 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 17 CropEnergies page 25 Fruit page Financial Highlights H1 2011/12 page Outlook 2011/12 page Appendix Long-term development and key figures page 50 Additional information page 52 Südzucker Group, page 49

50 Long-term development (I) Pre-Reform Transition Period Post-Transition Period Actual Actual Actual Actual Actual Actual Actual Actual Outlook (mn ) 2003/ / / / / / / / /12e Revenues ~ 6.800* EBITDA EBITDA-Margin 14,8% 15,0% 12,6% 11,8% 8,5% 8,3% 11,3% 12,5% Operating profit ~ 750* Operating Margin 10,5% 10,8% 8,4% 7,3% 4,0% 4,4% 7,0% 8,4% Income from operations (EBIT) ** Earnings before income taxes (EBT) Net earnings thereof to SZ AG shareholders Earnings per share ( ) 1,48 1,67 1,36-1,72 0,10 0,86 1,06 1,32 Dividend per share ( ) 0,50 0,55 0,55 0,55 0,40 0,40 0,45 0,55 Cashflow Investments total ~ 300*** Capital Employed RoCE 11,7% 11,3% 8,6% 8,8% 4,7% 5,2% 7,5% 9,8% Total Assets Equity Equity Ratio 39,5% 38,1% 47,1% 42,4% 41,7% 41,9% 47,3% 51,6% Net Financial Debt (NFD) ~ **** Gearing (NFD/Equity) 42,2% 61,1% 31,5% 24,1% 45,7% 50,6% 30,4% 22,8% * Revised upwards: ad-hoc-release on November 22, 2011 ** Extraordinary impact from Goodwill impairment loss *** Capex (excluding investments in financial assets) **** Incl. investment in ED&F Man; excl. Ybbstaler Südzucker Group, page 50

51 Long-term development (II) Cash flow (mn ) Revenues (bn ) ,2 ~ 6.8 ** Net Financial Debt (mn ) Operating Profit (mn ) ~ 750** 1,100 1,672 1, ,508 1,632 1, ~ * NFD/CF 2,1x 3,0x 2,2x 1,5x 3,0x 3,2x 1,9x 1,4x * Incl. investment in ED&F Man ** Revised upwards: ad-hoc-release on November 22, 2011 Sugar Special Products CropEnergies Fruit Südzucker Group, page 51

52 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 17 CropEnergies page 25 Fruit page Financial Highlights H1 2011/12 page Outlook 2011/12 page Appendix Long-term development and key figures page 50 Additional information page 52 Südzucker Group, page 52

53 Revenue by region 2010/11 Rest of world (9.1 %) Germany (29.1 %) EU 12 (11.8 %) 6,161 mn EU 15 (50.1 %) Südzucker Group, page 53

54 Segment Sugar: Campaign SMY 2010/11 Beet growers: 44,600 (46,000) Beet acreage: 388,000 (401,000) ha Sugar factories (incl. refineries): 32 (32) Beet processing: 26.1 (28.4) mn tons Sugar production: 4.2 (4.8) mn tons thereof from beets: 3.9 (4.4) mn tons thereof raw sugar raffination: 0.3 (0.4) Mio. t Südzucker Group, page 54

55 Segment Sugar: Factory structure , ,001 11, ,885 10, ,598 8,218 7, / / / / / / / /11 Employees * Factories ** * including reductions in the context of factory closures -100 ** beet sugar factories and refineries Südzucker Group, page 55

56 Price development for raw and white sugar (NYMEX, LIFFE, EU) 750 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 56

57 Political framework: EU European climate and energy package is being implemented Mandatory blending target of 10% for renewable energies in 2020 Use of bioethanol to increase to at least 14.5 million m³ by 2020 Open issues on EU level Different progress in the implementation of sustainability criteria within the EU Approval of EU-wide certification systems for fast and consistent implementation of sustainability criteria ILUC Commission report will be released in July 2011 at the latest Consequence: Favorable conditions for strong growth of EU market for sustainably produced bioethanol EU27: Renewable Energies in the Transport Sector ,3 6,3 20 5,3 4,1 4,6 2,9 25, ,3 12,5 14,9 15, Other Renewables Bioethanol Source: Evaluation of EU member states national action plans,000 m 3 million toe Development EU bioethanol production 0 FRA GER ESP UK POL SWE HUN AUT Others Source: F.O. Licht Südzucker Group, page 57

58 Political framework: Germany Biofuel quota Specific quota for petrol: 2.8% Overall quota in 2010 and beyond: 6.25% Transition to GHG reduction quotas in 2015 Measure offers additional marketing chances for bioethanol due to its high GHG reduction potential However, higher GHG reduction quotas than defined are necessary to ensure that the EU 10% target will be met,000 m Source: BAFA Fuel ethanol volume in Germany 0.9% 0.8% 88.3% 1.1% 1.1% 76.8% 40.2% 19.2% 79.7% 58.7% 22.4% 10.8% Bioethanol in ETBE Direct blending Bioethanol in E85 Biofuel Sustainability Regulation Proof of sustainability for biomass used for energy production mandatory since 1 January 2011 Transitional rules make implementation easier, e.g. one-time extension of mass balance period to 12 months until 30 June 2011 EU sustainability requirements for the production of biofuels have been implemented in due time. Practical experiences show the need for further clarifications. Südzucker Group, page 58

59 Price development wheat and maize (Euronext, LIFFE) Wheat price (Future contract March 2012) Price for maize (Future contract March 2012) / ton Südzucker Group, page 59

60 Financial calender Q3 1 st to 3 rd quarter report 2011/12 January 12, 2012 Press and analysts conference fiscal 2011/12 May 15, 2012 Q1 1 st quarter report 2012/13 July 12, 2012 Annual general meeting for fiscal 2011/12 July 19, 2012 Q2 1 st half year report 2012/13 October 11, 2012 Q3 1 st to 3 rd quarter report 2012/13 January 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 60