Südzucker Group Thomas Kölbl (CFO) Investor Roadshow October/ November 2012

Transcription

1 Südzucker Group Thomas Kölbl (CFO) Investor Roadshow October/ November 2012

2 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 16 CropEnergies page 24 Fruit page30 3. Financial Highlights H1 2012/13 page Outlook 2012/13 page Appendix Long-term development and key figures page 52 Additional information page 57 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 exchangelistingin Germany Market capitalisation > 5 bn Free float 34% MDAX-member Trading volume: ~ 1 mnshares/day CropEnergies (8%) Revenues7.0 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 Südzucker portfolio benefits from megatrends mn USD per capita income worldwide population growth worldwide emerging markets Source: United Nations Source: ERS International Macroeconomic Data Set mn barrel / day oil consumption USD / barrel mn t global animal feed production 20 0 crude oil price Source: BP Source: USDA 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 16 CropEnergies page 24 Fruit page30 3. Financial Highlights H1 2012/13 page Outlook 2012/13 page Appendix Long-term development and key figures page 52 Additional information page 57 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 sugarmarket* -supplyanddemand World Market EU Production EU Demand World Market Quota sugar ~16-17 mnt CAGR 2-3% Demand** 165 mnt ~13 mnt 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 mnt o/w SZ ~25% up to 0.4 mn t max. ~1.4 mnt ~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 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 Tereos (11 %) 20 France 100 Austria 100 Hungary 35 Rumania All others (17 %) Royal Cosun (7 %) Cristal Union (8 %) Pfeifer & Langen (8 %) Portugal Spain Italy Bosnia- Hercegowina Greece Bulgaria * Sugar marketing year: Oct. Sep. ** Südzucker estimates Südzucker Group, page 10 Südzucker distribution entities Non-EU production

11 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 volumen Nleverages European distribution platform Nsupports core regions Nsupports 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 11

12 Participation in ED&F Man at a glance Key Figures 2010/11* Transaction overview Total sales14.5 mn t Revenues 10 bnusd Profit from ordinary activities 192 mnusd Net Profit 76 mn USD Equity 683 mnusd Purchase25% -1 sharevia capital increase Purchaseprice255 mn USD At equity accounting Pro rata earnings contributionin 2012/13 -closingmay 22, 2012 *Financial Year ended Südzucker Group, page 12

13 Participation in ED&F Man offers a global footprint Private, employee owned company Long-standing corporate history: founded 1783 > 3,400 employeesin 60 countries Headquarter: London Operations: Sugar: Sugar only Liquid Products only Coffee only Multiple businesses 8.8 mnt tradingvolumewith signifivantpresencein Central andsouth America, FarEast, South East AsiaandAfrica 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 13

14 Segment Sugar: Outlook 2012/13 Revenues Higher non-quota sugar volume in light of strong campaign 2011 Possibilitytomarketnon-quotasugarofcampaign2011 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 14

15 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 16 CropEnergies page 24 Fruit page30 3. Financial Highlights H1 2012/13 page Outlook 2012/13 page Appendix Long-term development and key figures page 52 Additional information page 57 Südzucker Group, page 15

16 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 16

17 Segment Special Products BENEO: World market leader with premium food ingredients like Isomalt, Inulin, Oligofructoseor 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 17

18 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(prebioticfibresfromchicoryroots): Core productsinulin andoligofructose; distributionof CropEnergies by-product BeneoPro W BENEO-Palatinit (functionalcarbohydrates): 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, N Sales Offices Regional Centers Production facility Exploitation of growth potential of our core products Development of new markets via innovations Offstein Südzucker Group, page 18

19 Segment Special Products: Division Starch* Well establishedplayer asmanufacturerof specialtystarchesforthe 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 factoryforproductionof wheat starch andgluten at the siteof bioethanolplant in Pischelsdorf. Investment 65 mn (until 2013). Operations to start at the end of Gmünd (A) Aschach(A) Pischelsdorf(A) Production starch Szabadegyhaza(HU) Tandarei(RO) Production bioethanol Pischelsdorf * incorporates AGRANA bioethanol and starch activities Südzucker Group, page 19

20 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 20

21 Segment Special Products: Division PortionPack Europe European marketleader 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) Nuremberg Landgraaf (NL) Prague Krakow Barcelona facility Prague Südzucker Group, page 21

22 Segment Special Products: Outlook 2012/13 Revenues Revenue increase supported by all divisions. Moderate increase in revenues Operating Profit Basedon thestrong profitgrowthin thefirsthalf year, we continueto expectthatoperatingprofitwill buildon thelast year s level despite distortions in the commodity markets and the extremely competitive environment. Operating profit on prior year s level Südzucker Group, page 22

23 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 16 CropEnergies page 24 Fruit page30 3. Financial Highlights H1 2012/13 page Outlook 2012/13 page Appendix Long-term development and key figures page 52 Additional information page 57 Südzucker Group, page 23

24 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 24

25 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 180 Revenues(mn ) CAGR 2007/ /12: ~31 % / / / / /12 Houston São Paulo Rotterdam Loon-Plage Wanze Duisburg Trading offices in Brazil and the USA Production facility Tank storage Trading Zeitz Südzucker Group, page 25

26 Segment CropEnergies: at a glance(ii) Zeitz - Germany Wanze - Belgium Loon-Plage - France Raw Material Input feed grain, sugar feed grain, sugar raw alcohol Fuel Ethanol 360,000 m 3 < 300,000 m 3 100,000 m 3 Output Capacity Traditional Alcohol DDGS, Gluten Liquid Protein (dry subst.) Liquid CO 2 (JV) ,000 m 3 260,000 t 55,000 t ,000 t - 100,000 t - - Südzucker Group, page 26

27 Political environment: EU Implementation of the European climate and energy package progresses EU Commission approved 4 more certification systems in July 2012 including REDcert-EU Now 12 certification systems altogether are applicable throughout the EU EU Commission discusses draft directive to take indirect land use changes (iluc) into account Cap of 5% on crop-based biofuels Increase of GHG threshold to 60% for new installations Introduction of iluc emission values Quadruple counting of certain waste-based biofuels Setback in EU energy and climate policy Anti-dumping and anti-subsidy proceedings Damage to EU producers acknowledged No provisional countervailing duties but decision to register bioethanol imports from the USA gco2eq/mj million m Source: IFPRI (2011) EU consumption of Fuel Ethanol Source: Evaluation of EU member states national action plans Crop specific LUC emission Annual carbon release from palm extension on peat lands Annual carbon release from forest biomass Annual carbon release from carbon mineral soil Ethanol Feedstock France Germany Italy Poland Spain Sweden UK Others 14.5 Biodiesel Feedstock Wheat Maize Sugar Beet Sugar Palm fruit Soybean Sunflower Rapeseed Cane 22 Südzucker Group, page 27

28 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 will improve substantially Increasein operatingprofitto62-68 million Südzucker Group, page 28

29 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 16 CropEnergies page 24 Fruit page30 3. Financial Highlights H1 2012/13 page Outlook 2012/13 page Appendix Long-term development and key figures page 52 Additional information page 57 Südzucker Group, page 29

30 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 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) Further growth via fruit juice concentrates merger Reorganisation measures in division fruit preparations AGRANA FruitS.A.S. Fruit preparations ~70% of segment revenues ⅓ of worldmarket 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 31

32 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% FullyconsolidatedbyAGRANA Pro rataearningscontributionin 2012/13 -closingjune 1, 2012 Improvedcoverage of rawmaterial areas with production facilities Balance between own production and merchandise Südzucker Group, page 32

33 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 Operating profitin thefirsthalf offiscal2012/13 was higherthanin the second half of 2011/12 For fruit preparations, the recovery will continue to be driven by further volume increases Profit contributions from Ybbstaler are expected to stabilize operating profit for fruit juice concentrates at last year s level Improvement in operating profit Südzucker Group, page 33

34 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 16 CropEnergies page 24 Fruit page30 3. Financial Highlights H1 2012/13 page Outlook 2012/13 page Appendix Long-term development and key figures page 52 Additional information page 57 Südzucker Group, page 34

35 Group income statement 2 nd quarter 1 st half year (mn ) 2012/ /12 +/- in % 2012/ /12 +/- in % Revenues , ,4 EBITDA , ,9 EBITDA margin 17,3% 12,4% 16,9% 13,2% Depreciation , ,3 Operating profit , ,8 Operating margin 14,7% 9,6% 14,3% 10,4% Restructuring costs and special items Income from operations , ,2 Net earnings for the period attributable to Südzucker shareholders > > 100 Earnings per share ( ) (undiluted) 0,92 0,28 > 100 2,09 0,76 > 100 Cash flow , ,7 Investments in fixed assets , ,4 Net financial debt (as of reporting date) ,2 Average number of employees ,9 Südzucker Group, page 35

36 Financial Highlights H1 2012/13 Group revenues up 17 % to 3,917 (3,338) million Operating profit increased 62 % to 562 (347) million Cash flow up 57 % to 547 (349) million Earnings per share rises to 2.09 (0.76) (incl. one-off positive tax effect of 0.40 ) Net financial debt slightly increased by 48 million to816 (768) million Q2 group revenues and group operating profit reported on 25 September 2012 Südzucker Group, page 36

37 Segment Sugar: Development 1 st half year2012/13 2 nd quarter 1 st half year (mn ) 2012/ /12 +/- in % 2012/ /12 +/- in % Revenues , ,6 EBITDA , ,6 EBITDA margin 21,3% 13,5% 21,0% 14,2% Depreciation , ,7 Operating profit > ,6 Operating margin 20,1% 12,1% 19,7% 12,7% Revenues: Operating profit: The significant 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. The increasein operatingprofitismainlydriven by higher sugar revenues. Commodity costs were also up sharply. While last year only price level in Eastern Europe tracked world market prices on account of various contracts terms, in fall of 2011 sales revenues in Western Europe catched up. Südzucker Group, page 37

38 Segment Special Products: Development 1 st half year2012/13 2 nd quarter 1 st half year (mn ) 2012/ /12 +/- in % 2012/ /12 +/- in % Revenues , ,4 EBITDA , ,1 EBITDA margin 13,0% 10,3% 13,3% 11,7% Depreciation , ,5 Operating profit , ,5 Operating margin 8,5% 6,1% 8,9% 7,5% Revenues: Higher revenues in H1 mainly due to higher sales revenues. Operating profit: The operatingprofitdevelopmentexceededour expectations. The starch division's operating profit was higher than last year, driven by higher prices for sweeteners and isoglucose, especially in Q2. Together, the BENEO, Freibergerand PortionPackdivisions also contributed to the higher profits. Higher commodity costs were partly offset by higher sales revenues driven by a favorable currency exchange rate. Südzucker Group, page 38

39 Segment CropEnergies: Development 1 st half year2012/13 2 nd quarter 1 st half year (mn ) 2012/ /12 +/- in % 2012/ /12 +/- in % Revenues , ,6 EBITDA , ,6 EBITDA margin 20,6% 16,6% 17,7% 17,6% Depreciation , ,6 Operating profit , ,3 Operating margin 15,1% 10,6% 12,4% 11,5% Revenues: Operating profit: Strong increasein revenues is mainly due to higher bioethanolvolumes, and now also higher sales revenues. The CropEnergiessegment's operating profit in the second quarter was up sharply. The negative impact of higher commodity prices was more than offset by higher sales revenues from food and animal feed, improved capacity utilization and the associated volume growth and now also higher ethanol sales revenues. Südzucker Group, page 39

40 Segment Fruit: Development 1 st half year2012/13 2 nd quarter 1 st half year (mn ) 2012/ /12 +/- in % 2012/ /12 +/- in % Revenues , ,3 EBITDA , ,2 EBITDA margin 7,4% 9,9% 7,3% 10,3% Depreciation , ,5 Operating profit , ,0 Operating margin 4,2% 6,2% 4,3% 6,8% Revenues: Operating profit: Volumeand sales revenues were higher than the year prior. The joint venture company YBBSTALER AGRANA JUICE GmbH has been fully consolidated since the second quarter. On the heels of the negative developments in prior quarters, fruit segment was able to extend growth in operating profit that started in the first quarter into the second quarter approaching the prior year's results. But volume growth and higher sales revenues, as well as the profit contribution from the now joint venture company Ybbstalerfully consolidated since second quarter, were not enough to fully offset significantly higher costs. Südzucker Group, page 40

41 Income statement (I) 2 nd quarter 1 st half year (mn ) 2012/ /12 +/- in % 2012/ /12 +/- in % Revenues , ,4 Operating profit , ,8 Restructuring costs and special items Income from operations , ,2 Income from companies consolidated at equity > 100 Financial result , ,1 Earnings before income taxes > ,5 Income from companies consolidated at equity: Resultincludes the company's share of earnings from a joint-venture distributor and those of ED&F Man, which impacted the second quarter for the first time. Financial result: The financial result improved by 26 million. Net interest expense was down sharply by 13 million, in spite of an increase in average debt compared to last year of about 170 million. Campaign financing using short-term commercial papers with low 1 3 month Euriborinterest rates had a positive impact. The cost of other financing activities improved by 13 million. The driving factor here was the strengthening of Eastern European currencies against the euro. Last year, the results included currency exchange losses related to euro financing of Eastern European subsidiaries. Südzucker Group, page 41

42 Income statement(ii) 2 nd quarter 1 st half year (mn ) 2012/ /12 +/- in % 2012/ /12 +/- in % Earnings before income taxes > ,5 Taxes on income > ,6 Net earnings for the year > > 100 of which attributable to Südzucker shareholders > > 100 of which attributable to hybrid capital 7 7 0, ,0 of which attributable to minority interests , ,5 Earnings per share ( ) 0,92 0,28 > 100 2,09 0,76 > 100 Taxeson income: Lowertax resultdue to a one-time deferredtax incomeof 76 million in Q1. Minority interests: The co-owners of the AGRANA and CropEnergiesGroups account for most of the other minority interests' share of net earnings. Earningsper share: EPS increasedto 2.09 per share, incl. one-off positive tax effect of Südzucker Group, page 42

43 Cash flow statement 2 nd quarter 1 st half year (mn ) 2012/ /12 +/- in % 2012/ /12 +/- in % Cash flow , ,7 Increase (-)/ Decrease (+) in working capital , Investments in fixed assets Sugar segment , ,4 Special products segment , ,5 CropEnergies segment , ,2 Fruit segment 9 8 7, ,0 Total investments in fixed assets , ,4 Investments in financial assets/acquisitions , > 100 Dividends paid , ,1 Cash flow: Investments: The increase is due to the growth in operating profit. Final installments of monies owing for beets from last year's campaign in March 2012 were covered by income from the disposal of sugar inventories between March 1, 2012 and August31, This is reflected in the change in working capital, which remained almost constant. Investments in fixedassetswere mainlyfor replacementsand, amongother things, for the construction of a wheat starch factory. Südzucker Group, page 43

44 Balance sheet (mn ) /- in % Assets Non-current assets ,0 Current assets ,7 Total assets ,5 Liabilities and shareholders' equity Shareholders' equity ,6 Non-current liabilities ,3 Current liabilities ,4 Total liabilities and shareholders' equity ,5 Net financial debt ,2 Equity ratio 55% 50% Net financial debt in percent of equity (gearing) 19% 21% Increasein currentandnon-currentassets: The increasein currentassetsislargely 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 valuationadjustments. The decrease of current liabilities is primarily the result of repaying the 500 million 2002/2012 bond in February Südzucker Group, page 44

45 Liquidity profile end of period (mn ) Q2 2012/13 Q1 2012/13 Q4 2011/12 Q3 2011/12 Q2 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 (July 2012) undrawn Commercial paper program undrawn Bank credit lines (undrawn) Cash & cash equivalents / securities Syndicated loan (undrawn) Commercial paper (undrawn) = Total liquidity reserves Südzucker Group, page 45

46 Financing maturity profile(i) * (mn ) asof August 31, February EUR-Bond Hybrid mn Commercial Paper Programm (perpetual) Promissory Note Convertible Bond 600 mn SyndicatedLoan * Displayed to2019; 10-year trancheof Agranapromissorynotein theamountof 7 mn due in 2022 Südzucker Group, page 46

47 Financing maturity profile(ii) (asof August 31, 2012) 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 IssuerCall after 4 years; Investor Put after 5 years Syndicated loan, 600 mn, no covenants Margin 60 bp, short-termborrowing 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 Q2: 100 mn Südzucker Group, page 47

48 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 16 CropEnergies page 24 Fruit page30 3. Financial Highlights H1 2012/13 page Outlook 2012/13 page Appendix Long-term development and key figures page 52 Additional information page 57 Südzucker Group, page 48

49 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 mn Fruit 929 mn 38 mn Group 7.0 bn > 7.5bn 751 mn >900mn Südzucker Group, page 49

50 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 mnusd ~ mn 1) RoCE 13.2 % 1) incl. ED&F Man Südzucker Group, page 50

51 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 16 CropEnergies page 24 Fruit page30 3. Financial Highlights H1 2012/13 page Outlook 2012/13 page Appendix Long-term development and key figures page 52 Additional information page 57 Südzucker Group, page 51

52 Südzucker with strong capital market presence Südzucker Share Südzucker Bonds 31% 56% mn shares 34% Financial liabilities* 7% 10% 62% SZVG Free Float Zucker Invest GmbH (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 Number of shares issued Market capitalisation (October 11, 2012) 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 * asof February29, 2012 incl. hybrid bond ** firstissuercallrightbysüdzucker asof June 2015 Südzucker Group, page 52

53 Rating ratios improved Rating agency Long-term rating Short-term rating BBB+ * Stable outlook A 2 Baa1 ** Positive outlook*** P / / / /12 Net Financial Debt/ Cash flow 3.2x 1.9x 1.4x 1.0x Südzucker Group, page 53 * sincejune 2012 ** since January 2012 *** since August 2012

54 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 > 900 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 in fixed assets ~ 400 Investments in financial assets/acquisitions ~ 181** Total investments 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 ** Investment in ED&F Man *** incl. investment in ED&F Man Südzucker Group, page 54

55 Long-term development(ii) Cash flow (mn ) Revenues (bn ) >7.5 Net Financial Debt (mn ) Operating Profit (mn ) 1,672 1,508 1, >900 1,100 1, , NFD/CF 2.1x 3.0x 2.2x 1.5x 3.0x 3.2x 1.9x 1.4x 1.0x Sugar Special Products CropEnergies Fruit Südzucker Group, page 55

56 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 8 Special Products page 16 CropEnergies page 24 Fruit page30 3. Financial Highlights H1 2012/13 page Outlook 2012/13 page Appendix Long-term development and key figures page 52 Additional information page 57 Südzucker Group, page 56

57 Revenue by region 2011/12 Rest of world (17 %) Germany (25 %) 6,992 mn EU 12 (17 %) EU 15 (41 %) Südzucker Group, page 57

58 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 thereoffrombeets: 4.9 (3.9) mntons thereof raw sugar raffination: 0.5 (0.3) Mio. t Südzucker Group, page 58

59 Südzucker well positioned in Beet Belt Germany Poland Belgium Czech Republic Slovakia Moldova France Austria Hungary Romania Südzucker Group, page 59

60 Price developmentforrawandwhitesugar(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 Sep-12 Oct-12 Oct-08 Oct-09 Oct-10 Oct-11 Oct-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 60

61 Developments in the EU bioethanol market EU bioethanolconsumption expected to increase by 7.3% to 5.9 million m3 Bioethanolconsumption increased in Germany from Jan. to July 2012 by 7.6% to 925,000 m³ Direct blending amounted to 87% and remained the main use of bioethanol Bioethanol for ETBE amounted to 12% Petrol quota at 4.3% in July Stable E10 consumption despite controversial media discussion E10 sales from January to July 2012 amounted to 1.49 million t (906,000 t) In July 2012, the E10 market share was 14.7% of the German petrol market,000 m 3,000 t 0 0% Jul 11 Sep 11 Nov 11 Jan 12 Mar 12 May 12 Jul 12 Direct blending Bioethanol in ETBE Bioethanol in E85 Petrol quota Source: BAFA Bioethanol Consumption in Germany 150 6% 4,4% 4,2% 4,3% 4,5% 4,1% 4,3% 4,3% 100 4% 50 2% E10 Sales in France and Germany 0 Jul 11 Sep 11 Nov 11 Jan 12 Mar 12 May 12 Jul 12 Source: BAFA, SNPAA France Germany Südzucker Group, page 61

62 Regarding EU mobility, ethanol has still biggest potential Rawmaterial availabilityeu (279 mn t) 4% vs. 7% greening set-aside plans EU EU harvest projection 2012/13 24% Vehicle fleet Germany (asof January 1, 2012 (KBA)) Electric drive 4, % Hybrid system 47, % Internal combustion engine 42,875, % Gasoline 30,452, % CNG 74, % Total 42,927,647 60% 279 mn t 2% 12% 3,6% Cattle Feeding Food Versatilityof ethanol applications Low blend (E5, E10, E20) Octane (RON) booster ETBE High blend E85 for FFV cars Bioethanol Net export incl. D stocks Others Südzucker Group, page 62

63 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 Sep-12 Oct-12 Oct-08 Oct-09 Oct-10 / ton Oct-11 / ton Oct-12 Wheat price (Future contract switching upon expiry) Price for maize (Future contract switching upon expiry) Südzucker Group, page 63

64 Financial calender Q3 3 rd quarterreport2012/13 January10, 2013 Press and analysts conference fiscal 2012/13 May 16, 2013 Q1 1 st quarterreport2013/14 July11, 2013 Annual general meeting for fiscal 2012/13 August 1, 2013 Q2 1 st half yearreport2013/14 October10, 2013 Q3 3 rd quarterreport2013/14 January13, 2014 Contact Head of Investor Relations Nikolai Baltruschat Tel.: +49 (621) investor.relations@suedzucker.de Disclaimer This presentation contains forward looking statements based on assumptions and estimates made by the executive board of Südzucker AG. Although the executive board may be convinced that these assumptions and estimates are reasonable the future actual developments and future actual results may vary considerably from the assumptions and estimates due to many external and internal factors. For example, matters to be mentioned in this connection include negotiations relating to the world trade agreement (WTA), changes to the overall economic situation, changes to EU sugar policies, consumer 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 64