Südzucker Group Thomas Kölbl (CFO) Investor Update Fixed Income March 2011

Transcription

1 Südzucker Group Thomas Kölbl (CFO) Investor Update Fixed Income March 2011

2 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 7 Special Products page 15 CropEnergies page 20 Fruit page Outlook 2010/11 page Finance Strategy page Funding Strategy page Appendix Financial Highlights 9M 2010/11 page 42 Long-term development and key figures page 53 Additional information page 59 Südzucker Group Investor Update Fixed Income March 2011, page 2

3 Südzucker Group at a glance* Global operating German food group Production facilities: 100 Employees: Revenues: 5.7 bn (70 % generated outside Germany) Operating profit: 403 mn Stock exchange listing in Germany Market capitalisation ~ 3.5 bn Free float 35% MDAX-member Trading volume: ~ 1 mn shares/day CropEnergies (6%) Revenues 5.7 bn Sugar (55%) Special products (25%) Fruit (14%) *basis FY 2009/10 Südzucker Group Investor Update Fixed Income March 2011, 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 Internal efficiency gains 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 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 Südzucker Group Investor Update Fixed Income March 2011, page 4

5 Back on track after successful transformation Pre-Reform 2003/04 Transition Period (sugar market regime) Post-Transition Period 2010/11e Revenues 26% 4.6 bn 74% 6.0 bn Op. Profit 30% 479 mn 70% about 500 mn 233 mn - 07/08 Sugar Special Products Fruit CropEnergies Südzucker Group Investor Update Fixed Income March 2011, page 5

6 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 7 Special Products page 15 CropEnergies page 20 Fruit page Outlook 2010/11 page Finance Strategy page Funding Strategy page Appendix Financial Highlights 9M 2010/11 page 42 Long-term development and key figures page 53 Additional information page 59 Südzucker Group Investor Update Fixed Income March 2011, page 6

7 Segment Sugar: Key Figures * (mn ) 2009/ / /08 Revenues EBITDA EBITDA-Margin 10,5% 7,7% 6,1% Operating profit Operating Margin 6,9% 4,1% 1,7% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 7,5% 5,0% 2,2% * This presentation includes percentage and number rounding Südzucker Group Investor Update Fixed Income March 2011, page 7

8 EU sugar market* - supply and demand World Market EU Production EU Demand World Market Quota sugar ~16-17 mn t ~13 mn t 3-4 mn t Demand** 166 mn t o/w SZ: Mauritius ~0.4 mn t Raw sugar imports for raffination through SZ ~0.3 mn t Production** 168 mn t o/w SZ 3.2 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, November 2010 Südzucker Group Investor Update Fixed Income March 2011, page 8

9 EU quota sugar production - sugar marketing year* 2009/10 Market share** EU quota sugar production Südzucker quota share per country (in %) Südzucker Group (24 %) Nordzucker (15 %) Great Britain Poland Germany 25 British Sugar (12 %) Belgium Czech Republic 39 Slovakia Moldova Tereos (10 %) 20 France 100 Austria 100 Hungary 35 Rumania All others (32 %) Pfeifer & Langen (7 %) Portugal Italy Bosnia- Hercegowina Greece Bulgaria Spain * Sugar marketing year: Oct. Sep. ** Südzucker estimates Südzucker Group Investor Update Fixed Income March 2011, page 9 Südzucker distribution activity Non-EU production

10 Cooperation with Mauritius strengthens distribution power 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 Investor Update Fixed Income March 2011, page 10

11 Segment Sugar: Sugar production 2010 * 1,000 tonnes Change abs. Change % Germany 1,494 1, France Belgium Austria Poland Romania Czech Republic Hungary Moldova > 100,0 Bosnia Slovakia Total 4,333 4, * Sugar production (incl. refining) campaign 2010 (preliminary) Due to alternating weather and growing conditions across Europe, previous year s extraordinary high group sugar yield of 12.3 t/ha was unreproducible and reached 11.4 t/ha. As a consequence, preliminary campaign estimates show a reduction in sugar production of approximately 9 % against previous year s high level. Südzucker Group Investor Update Fixed Income March 2011, page 11

12 Segment Sugar: Development 9M 2010/11 3 rd quarter 1 st - 3 rd quarter (mn ) 2010/ / / /10 Revenues % 2,537 2, % EBITDA % % EBITDA margin 15.9% 15.9% 12.9% 10.5% Depreciation % % Operating profit % % Operating margin 8.2% 7.9% 9.3% 6.9% Revenues: Operating profit: Stable revenue development in Q3 following H1 which was marked by an increase in non-quota sugar exports and lower quota sugar sales revenues. Lower costs compensating for the lower sales revenues since 1 st of October 2009, have fully materialized in Q3. Furthermore the increase in operating profit was strongly supported by the significant increase in quota sugar volumes in H1 and especially by the higher non-quota sugar exports in Q1. Südzucker Group Investor Update Fixed Income March 2011, page 12

13 Segment Sugar: Outlook 2010/11 Revenues Sales revenue reduction as of 1 st of October 2009 takes effect on full financial year basis for the first time Higher volume of imported Mauritian sugar Higher quota sugar volumes Overall leading to a slight increase in revenues Operating Profit End of the restructuring phase in the EU sugar market and the elimination of temporary charges associated with sugar market reform (e.g. restructuring levy) Non-quota sugar exports with one-time positive effect, especially in first quarter Further and sustainable increase in operating profit Südzucker Group Investor Update Fixed Income March 2011, page 13

14 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 7 Special Products page 15 CropEnergies page 20 Fruit page Outlook 2010/11 page Finance Strategy page Funding Strategy page Appendix Financial Highlights 9M 2010/11 page 42 Long-term development and key figures page 53 Additional information page 59 Südzucker Group Investor Update Fixed Income March 2011, page 14

15 Segment Special Products: Key Figures (mn ) 2009/ / /08 Revenues EBITDA EBITDA-Margin 14,9% 12,1% 12,8% Operating profit Operating Margin 9,8% 7,6% 8,3% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,5% 8,4% 8,8% * *adjusted for CropEnergies 2007/08 Südzucker Group Investor Update Fixed Income March 2011, page 15

16 Segment Special Products: strong positions in all divisions 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 2005/ /10: ~7 % 1,079 Starch* 36% 1,161 Revenue split 2009/10 PortionPack 8% 1,283 1,396 mn 1,427 Freiberger 32% BENEO (Functional Food) 24% * incorporates AGRANA bioethanol and starch activities 1, / / / / /10 Südzucker Group Investor Update Fixed Income March 2011, page 16

17 Segment Special Products: Development 9M 2010/11 3 rd quarter 1 st - 3 rd quarter (mn ) 2010/ / / /10 Revenues % 1,166 1, % EBITDA % % EBITDA margin 13.3% 16.7% 14.4% 15.0% Depreciation % % Operating profit % % Operating margin 8.7% 11.8% 9.6% 10.0% Revenues: Operating profit: In light of higher volumes, all divisions contributed to the increase in revenues. Despite the expected lower earnings contribution in Q3, 9M performance still shows an increase in operating profit against previous year s level. In division starch, the ongoing volume uplift and most recent sales revenue increase were enough to compensate for the increase in raw material prices. Südzucker Group Investor Update Fixed Income March 2011, page 17

18 Segment Special Products: Outlook 2010/11 Revenues Volume increase in all divisions Overall increase in revenues Operating Profit Earnings development in all divisions less affected by difficult market environment Slighly lower operating profit against prior year Südzucker Group Investor Update Fixed Income March 2011, page 18

19 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 7 Special Products page 15 CropEnergies page 20 Fruit page Outlook 2010/11 page Finance Strategy page Funding Strategy page Appendix Financial Highlights 9M 2010/11 page 42 Long-term development and key figures page 53 Additional information page 59 Südzucker Group Investor Update Fixed Income March 2011, page 19

20 Segment CropEnergies: Key Figures * (mn ) 2009/ / /08 Revenues EBITDA EBITDA-Margin 9,2% 9,0% 17,2% Operating profit Operating Margin 3,3% 5,7% 12,2% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 2,3% 8,2% 10,0% *since 2008/09 reported as separate segment Südzucker Group Investor Update Fixed Income March 2011, page 20

21 Segment CropEnergies: Overview Improvement of political framework EU: Renewable Energies Directive has been in force since June 2009 Germany: E10 introduced since January 1, 2011 Increased capacity utilisation in Wanze Economies of scale Successful launch of Gluten and ProtiWanze Start-up of the CO 2 liquefaction plant CT Biocarbonic GmbH (joint venture) Partner: Tyczka Energie GmbH Annual capacity of 100,000 tonnes of biogenic CO 2 First customers already supplied Flexible input of various feedstock (e.g. wheat, corn, sugar thick juice) Production facilities: 760,000 m 3 Zeitz Wanze Loon-Plage 360,000 m 3 300,000 m 3 100,000 m 3 EU demand/potential and production (bioethanol) 1.0% % % ,7% 5,3 4,5 Source: EU Member States Reports, F.O. Licht, CropEnergies 10% e Production (mn m 3 ) Demand/Potential (mn m 3 ) Petrol quota ~15 Südzucker Group Investor Update Fixed Income March 2011, page 21

22 Segment CropEnergies: Development 9M 2010/11 * 3 rd quarter 1 st - 3 rd quarter (mn ) 2010/ / / /10 Revenues % % EBITDA 22 9 > 100.0% > 100.0% EBITDA margin 17.8% 10.2% 16.8% 6.2% Depreciation % % Operating profit 15 4 > 100.0% 32 4 > 100.0% Operating margin 11.7% 4.8% 9.9% 1.3% Revenues: Operating profit: The increase in revenues was mainly driven by higher volumes at the production facility in Wanze. In light of the higher volume in ethanol and respective by-products, operating profit has been strongly lifted. The spread between ethanol and grain prices was nearly unchanged. * CropEnergies has reported 9M revenues and operating profit on 17 December 2010 Südzucker Group Investor Update Fixed Income March 2011, page 22

23 Segment CropEnergies: Outlook 2010/11 Revenues Increase in utilization at BioWanze leads to higher production level and increase in volumes of bioethanol as well as by-products Significant increase in revenues Operating Profit Despite maintenance shutdown phase in Q1, production facilities in Zeitz and Wanze with positive earnings development on full year basis through higher utilization of capacities for bioethanol and by-product production Operating profit to exceed 40 (12) million Südzucker Group Investor Update Fixed Income March 2011, page 23

24 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 7 Special Products page 15 CropEnergies page 20 Fruit page Outlook 2010/11 page Finance Strategy page Funding Strategy page Appendix Financial Highlights 9M 2010/11 page 42 Long-term development and key figures page 53 Additional information page 59 Südzucker Group Investor Update Fixed Income March 2011, page 24

25 Segment Fruit: Key Figures (mn ) 2009/ / /08 Revenues EBITDA EBITDA-Margin 8,9% 4,0% 9,5% Operating profit Operating Margin 4,4% neg. 5,1% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 5,5% neg. 5,6% Südzucker Group Investor Update Fixed Income March 2011, page 25

26 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 Revenues (in mn ) * Financial year adjustment 12 months 915* / / / / /10 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. Paris Fruit preparations 80% of segment revenues ~35% world market share 25 facilities on the globe AGRANA Juice GmbH, Gleisdorf Fruit juice concentrates 20% of segment revenues ~20% European market share 10 facilities worldwide Südzucker Group Investor Update Fixed Income March 2011, page 26

27 Segment Fruit: Development 9M 2010/11 3 rd quarter 1 st - 3 rd quarter (mn ) 2010/ / / /10 Revenues % % EBITDA % % EBITDA margin 11.0% 11.9% 9.7% 8.4% Depreciation % % Operating profit % % Operating margin 6.7% 7.6% 5.5% 4.2% Revenues: Operating profit: Higher volumes in H1 overcompensated the sales revenue decline in the first nine months. Though 9M earnings still show a significant improvement against previous year s level, higher sales revenues were not enough to compensate for the lower volumes in Q3 leading to a reduction in earnings in the quarter. Südzucker Group Investor Update Fixed Income March 2011, page 27

28 Segment Fruit: Outlook 2010/11 Revenues Impulse via innovation and development of new markets in both divisions Market recovery facilitates volume increase in division fruit preparations Recovering sales revenues in fruit juice concentrate during course of the year due to weather-driven lower apple harvest Revenues above previous year Operating Profit Further improvement in operating profit mainly supported by volume increase in fruit preparation as well as normalized margins in fruit juice contentrate divisions Südzucker Group Investor Update Fixed Income March 2011, page 28

29 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 7 Special Products page 15 CropEnergies page 20 Fruit page Outlook 2010/11 page Finance Strategy page Funding Strategy page Appendix Financial Highlights 9M 2010/11 page 42 Long-term development and key figures page 53 Additional information page 59 Südzucker Group Investor Update Fixed Income March 2011, page 29

30 Group: Outlook 2010/11 Sugar Special Products Revenues 2009/ /11e 3.2 bn 1.4 bn Operating Profit 2009/ /11e 217 mn 138 mn CropEnergies 362 mn 12 mn > 40 mn Fruit 806 mn 36 mn Group 1) 5.7 bn 6.0 bn 403 mn about 500 mn Investments 2) ~ 250 mn Net Financial ~ 900 1,000 mn Debt 1) Revised upwards following preliminary announcement on 17 December ) excl. investments in financial assets Südzucker Group Investor Update Fixed Income March 2011, page 30

31 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 7 Special Products page 15 CropEnergies page 20 Fruit page Outlook 2010/11 page Finance Strategy page Funding Strategy page Appendix Financial Highlights 9M 2010/11 page 42 Long-term development and key figures page 53 Additional information page 59 Südzucker Group Investor Update Fixed Income March 2011, page 31

32 Major Elements of Südzucker s finance strategy Südzucker commits itself to an investment grade rating. Clear target to secure current BBB/Baa2 rating. Südzucker s main steering measures are Debt-Multiple (=NetDebt/Cashflow) Return on Capital Employed (RoCE) Finance Strategy Dividend policy: Continuity and cash flow based assessment are key elements. Following the phase of expansion in Bioethanol, Beneo and Fruit and the transition period of the European sugar market, Südzucker s focus is on a further deleverage. Südzucker Group Investor Update Fixed Income March 2011, page 32

33 Südzucker Rating Rating Agency Long-term Rating Short-term Rating BBB Stable outlook A - 2 Baa 2 Stable outlook P - 2 Südzucker Group Investor Update Fixed Income March 2011, page 33

34 Südzucker s proven access to capital markets Hybrid Bonds Eurobonds Convertible Bonds Commercial Paper Instrument and market mix to diversify our investor base and ensure demand Promissory Notes Syndicated Loans Südzucker has established access to all major transaction types Südzucker Group Investor Update Fixed Income March 2011, page 34

35 Financing maturity profile 600 July 500 mn Bond due February mn Syndicated loan due June June 500 February Synloan EUR-Bond Hybrid Promissory Note Convertible Bond mn Commercial Paper Program Südzucker Group Investor Update Fixed Income March 2011, page 35

36 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 7 Special Products page 15 CropEnergies page 20 Fruit page Outlook 2010/11 page Finance Strategy page Funding Strategy page Appendix Financial Highlights 9M 2010/11 page 42 Long-term development and key figures page 53 Additional information page 59 Südzucker Group Investor Update Fixed Income March 2011, page 36

37 Net debt development since 2006/07 (in mn. ) Transition Period (sugar market regime) Post-Transition Period 2010/11e ~900 to ~ / / / / /11e Net debt on balance Cashflow Südzucker Group Investor Update Fixed Income March 2011, page 37

38 Normalisation of NFD* trend continues in 2010/11 Three years with high payments to the EU restructuring fund led to temporary distortion of normal seasonal NFD pattern In 2009/10 the EU restructuring assistance (received by end of June 2009) has essentially contributed to a reduction in NFD and a seasonal normalisation Basis for additional reduction in NFD going forward -586 mn ** -551 mn ** -363 mn ** +446 mn *** * Net Financial Debt ** Payments to restructuring fund (overall -1.5 bn ) *** Südzucker received EU restructuring assistance of 446 mn in June 2009 Südzucker Group Investor Update Fixed Income March 2011, page 38

39 Liquidity profile end of period (mn ) Q3 2009/10 Q4 2009/10 Q1 2010/11 Q2 2010/11 Q3 2010/11 Net financial debt ,065-1, Cash & cash equivalents / securities Gross financial debt -1,793-1,760-1,764-1,413-1,425 Long-term financial debt -1,186-1,120-1,113-1,083-1,123 Short-term financial debt Bank credit lines: 1,276 1,234 1,177 1,133 1,062 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 2,669 2,452 2,414 2,368 2,366 Südzucker Group Investor Update Fixed Income March 2011, page 39

40 Summary Market leading positions in all business areas Südzucker sustainably will benefit from mega-trends Future growth financed already before economic crisis and secured via capacity expansions Strong balance sheet figures High cashflow generation Management committed to secure investment grade rating (mn ) e Total assets Equity Equity ratio 41,9% 47,3% Net Financial Debt (NFD) Gearing (NFD/Equity) ~ ,6% 30,4% Cashflow NFD/Cashflow 3,2x 1,9x Südzucker Group Investor Update Fixed Income March 2011, page 40

41 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 7 Special Products page 15 CropEnergies page 20 Fruit page Outlook 2010/11 page Finance Strategy page Funding Strategy page Appendix Financial Highlights 9M 2010/11 page 42 Long-term development and key figures page 53 Additional information page 59 Südzucker Group Investor Update Fixed Income March 2011, page 41

42 Group income statement 3 rd quarter 1 st - 3 rd quarter (mn ) 2010/ / / /10 Revenues 1,599 1, % 4,667 4, % EBITDA % % EBITDA margin 14.8% 15.2% 13.1% 11.0% Depreciation % % Operating profit % % Operating margin 8.4% 8.6% 8.9% 6.9% Restructuring costs and special items Income from operations % % Net earnings for the period attributable to Südzucker shareholders % % Earnings per share ( ) (undiluted) % % Cash flow % % Investments in fixed assets % % Net financial debt (as of reporting date) % Average number of employees 18,052 17, % Südzucker Group Investor Update Fixed Income March 2011, page 42

43 Financial Highlights 9M 2010/11 * 9M 2009/10 9M 2010/11 Revenues 4,438 mn 4,667 mn Operating Profit 308 mn 416 mn Cash flow 419 mn 497 mn Earnings per share Net Financial Debt 893 mn 704 mn * 9M group revenues and group operating profit reported on 17 December 2010 Südzucker Group Investor Update Fixed Income March 2011, page 43

44 Segment Sugar 3 rd quarter 1 st - 3 rd quarter (mn ) 2010/ / / /10 Gross revenues % 2, , % Consolidation % % Revenues % 2, , % EBITDA % % EBITDA margin 15.9% 15.9% 12.9% 10.5% Depreciation % % Operating profit % % Operating margin 8.2% 7.9% 9.3% 6.9% Restructuring costs and special items % % Income from operations % % Investments in fixed assets % % Capital Employed 2, , % Average number of employees 8,065 8, % Südzucker Group Investor Update Fixed Income March 2011, page 44

45 Segment Special Products 3 rd quarter 1 st - 3 rd quarter (mn ) 2010/ / / /10 Gross revenues % 1, , % Consolidation % % Revenues % 1, , % EBITDA % % EBITDA margin 13.3% 16.7% 14.4% 15.0% Depreciation % % Operating profit % % Operating margin 8.7% 11.8% 9.6% 10.0% Restructuring costs and special items % Income from operations % % Investments in fixed assets % % Capital Employed 1, , % Average number of employees 4,282 4, % Südzucker Group Investor Update Fixed Income March 2011, page 45

46 Segment CropEnergies 3 rd quarter 1 st - 3 rd quarter (mn ) 2010/ / / /10 Gross revenues % % Consolidation > 100.0% > 100,0% Revenues % % EBITDA > 100.0% > 100.0% EBITDA margin 17.8% 10.2% 16.8% 6.2% Depreciation % % Operating profit > 100.0% > 100.0% Operating margin 11.7% 4.8% 9.9% 1.3% Restructuring costs and special items Income from operations > 100.0% > 100.0% Investments in fixed assets % % Capital Employed % Average number of employees % Südzucker Group Investor Update Fixed Income March 2011, page 46

47 Segment Fruit 3 rd quarter 1 st - 3 rd quarter (mn ) 2010/ / / /10 Gross revenues % % Consolidation Revenues % % EBITDA % % EBITDA margin 11.0% 11.9% 9.7% 8.4% Depreciation % % Operating profit % % Operating margin 6.7% 7.6% 5.5% 4.2% Restructuring costs and special items Income from operations % % Investments in fixed assets % % Capital Employed % Average number of employees 5,399 4, % Südzucker Group Investor Update Fixed Income March 2011, page 47

48 Income statement (I) 3 rd quarter 1 st - 3 rd quarter (mn ) 2010/ / / /10 Revenues 1,599 1, % 4,667 4, % Operating profit % % Restructuring costs and special items Income from operations % % Income from associated companies % Financial result % > 100.0% Earnings before income taxes % % Restructuring costs and special items: Unchanged in comparison to H1 level. Income from associated companies: The result reflects mainly the company s share of earnings from our joint ventures sales organizations. Financial result: The deterioration is mainly attributable to two non-recurring effects; positive currency effects of the prior year and the discounting of the EU restructuring assistance receivable. Due to a reduction in average net debt, financial expenses were reduced from 122 million to 95 million. Südzucker Group Investor Update Fixed Income March 2011, page 48

49 Income statement (II) 3 rd quarter 1 st - 3 rd quarter (mn ) 2010/ / / /10 Earnings before income taxes ,5% ,5% Taxes on income ,2% ,1% Net earnings for the year ,2% ,5% of which attributable to Südzucker shareholders ,7% ,1% of which attributable to hybrid capital 7 7-1,5% ,5% of which attributable to minority interests ,3% ,9% Earnings per share ( ) 0,34 0,30 13,9% 0,99 0,84 18,1% Taxes on income: The tax rate came in at 21 %. Minority interests: The co-owners of the AGRANA Group account for most of the other minority interests share of the net earnings. Earnings per share: EPS increased by 18 % to Südzucker Group Investor Update Fixed Income March 2011, page 49

50 Cash flow statement 1 st - 3 rd quarter (mn ) 2010/ /10 Cash flow % Decrease (+) in working capital % Investments in fixed assets Sugar segment % Special products segment % CropEnergies segment % Fruit segment % Total investments in fixed assets % Investments in financial assets % Dividends paid % Cash flow: Investments: The improvement follows the development in operating profit. The decline in working capital was substantially lower than last year, because in June 2009, the company received the EU restructuring payment of 446 million. Continued disciplined capex program with overall investments close to maintenance level. Südzucker Group Investor Update Fixed Income March 2011, page 50

51 Balance sheet (mn ) Assets Non-current assets 4,050 4, % Current assets 3,516 3, % Total assets 7,566 7, % Liabilities and shareholders' equity Shareholders' equity 3,653 3, % Non-current liabilities 1,931 1, % Current liabilities 1,982 2, % Total liabilities and shareholders' equity 7,566 7, % Net financial debt % Equity ratio 48% 45% Net financial debt in percent of equity (gearing) 19% 26% Reduction in current liabilities leading to reduction in net financial debt: The reduction in current liabilities is driven by the redemption of the 300 million bond in June Further improvement in financial ratios: The equity ratio has seen a further improvement to 48%. The improvement in gearing reflects both, the further reduced net financial debt level and the increase in equity. Südzucker Group Investor Update Fixed Income March 2011, page 51

52 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 7 Special Products page 15 CropEnergies page 20 Fruit page Outlook 2010/11 page Finance Strategy page Funding Strategy page Appendix Financial Highlights 9M 2010/11 page 42 Long-term development and key figures page 53 Additional information page 59 Südzucker Group Investor Update Fixed Income March 2011, page 52

53 Long-term development Pre-Reform Transition Period Post-Transition Period Actual Actual Actual Actual Actual Actual Actual Outlook (mn ) 2003/ / / / / / / /11e Revenues EBITDA EBITDA-Margin 14,8% 15,0% 12,6% 11,8% 8,5% 8,3% 11,3% Operating profit ~ 500 Operating Margin 10,5% 10,8% 8,4% 7,3% 4,0% 4,4% 7,0% 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 Dividend per share ( ) 0,50 0,55 0,55 0,55 0,40 0,40 0,45 Cashflow Investments total ~ 250*** Capital Employed RoCE 11,7% 11,3% 8,6% 8,8% 4,7% 5,2% 7,5% Total Assets Equity Equity Ratio 39,5% 38,1% 47,1% 42,4% 41,7% 41,9% 47,3% Net Financial Debt (NFD) ** ~ Gearing (NFD/Equity) 42,2% 61,1% 31,5% 24,1% 45,7% 50,6% 30,4% * Extraordinary impact from Goodwill impairment loss ** Does not include Cash inflow of 446 mn from EU effective June 2009 *** Capex (excluding investments in financial assets) Südzucker Group Investor Update Fixed Income March 2011, page 53

54 Return on Capital Empoyed (RoCE) 2007/ / / /11e Sugar 2.2% 5.0% 7.5% Segments Special Prod. CropEnergies 9.0% 8.4% 10.5% 10.0% 8.2% 2.3% Fruit 5.6% neg. 5.5% RoCE 4.7% 5.2% 7.5% Group Operating Profit 233 mn 258 mn 403 mn Capital Employed 5,005 mn 4,923 mn 5,374 mn Südzucker Group Investor Update Fixed Income March 2011, page 54

55 Breakdown of Capital Employed (2009/10) Breakdown by assets Breakdown by segments 23% 10% 12% 49% 5,374 mn 5,374 mn 54% 28% 24% Goodwill Working Capital Fixed assets Sugar CropEnergies Special Products Fruit Südzucker Group Investor Update Fixed Income March 2011, page 55

56 Group balance sheet (mn ) Assets ,641 (21.3 %) Other current assets 1,536 (20.7 %) Liabilities ,539 (32.9 %) Current liabilities 1,976 (26.7 %) 1,997 (25.9 %) Inventories 1,751 (23.7 %) 1,940 (25.2 %) Non-current liabilities 1,922 (26.0 %) 4,071 (52.8 %) Non-current assets 4,111 (55.6 %) 3,229 (41.9 %) Equity 3,500 (47.3 %) 7,709 Total 7,398 7,709 Total 7,398 Südzucker Group Investor Update Fixed Income March 2011, page 56

57 Group balance sheet (mn ) Intangible assets ,1% ,3% Property, plant, equipement ,5% ,3% Shares in associated companies 19 0,3% 76 1,0% Other investments and loans 29 0,4% 23 0,3% Securities 146 2,0% 105 1,4% Receivables and other assets 13 0,2% 8 0,1% Deferred tax assets 164 2,2% 108 1,4% Non-current assets ,6% ,8% Inventories ,7% ,9% Trade receivables and other assets ,0% ,9% Current tax receivables 25 0,3% 33 0,4% Securities 191 2,6% 144 1,9% Cash and cash equivalents 357 4,8% 164 2,1% Current assets ,4% ,2% Total assets ,0% ,0% (mn ) Equity attributable to shareholders of SZ AG ,7% ,5% Hybrid capital 684 9,2% 684 8,9% Other minority interest 546 7,4% 499 6,5% Shareholder's equity ,3% ,9% Provisions for pensions and similar obligations 409 5,5% 405 5,2% Other provisions 188 2,5% 201 2,6% Non-current financial liabilities ,1% ,0% Other liabilities 15 0,2% 15 0,2% Deferred tax liabilities 191 2,6% 165 2,1% Non-current liabilities ,0% ,2% Other provisions 104 1,4% 117 1,5% Current financial liabilities 641 8,7% ,6% Trade and other payables ,1% ,4% Current tax liabilities 37 0,5% 33 0,4% Current liabilities ,7% ,9% Total liabilities and shareholders' equity ,0% ,0% Südzucker Group Investor Update Fixed Income March 2011, page 57

58 Agenda 1. Overview and strategic objectives page 3 2. Development of Segments Sugar page 7 Special Products page 15 CropEnergies page 20 Fruit page Outlook 2010/11 page Finance Strategy page Funding Strategy page Appendix Financial Highlights 9M 2010/11 page 42 Long-term development and key figures page 53 Additional information page 59 Südzucker Group Investor Update Fixed Income March 2011, page 58

59 Südzucker well positioned in Beet Belt Germany Poland Belgium Czech Republic Slovakia Moldova France Austria Hungary Romania Südzucker Group Investor Update Fixed Income March 2011, page 59

60 Segment Sugar: Factory structure and cost savings Factory structure Cost savings (in mn ) ,812 12,001 11,678 10,885 10,043 8,598 8,218 8, / / / / / / / /11e Employees * Factories ** / / / / / /11e * including reductions in the context of factory closures ** beet sugar factories and refineries Südzucker Group Investor Update Fixed Income March 2011, page 60

61 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 Investor Update Fixed Income March 2011, page 61

62 Segment CropEnergies Production facilities: 760,000 m 3 (~200 million gallons) Capacity ethanol Zeitz Europe s most efficient plant 360,000 m³ (95 mn G) Wanze Europe s most innovative plant up to 300,000 m³ (79 mn G) Loon-Plage Europe s most flexible plant 100,000 m³ (26 mn G) 80,000 m³ (21 mn G) traditional Co-Products DDGS: 260,000 tons Biogenic CO 2 : 100,000 tons CDS > 200,000 tons Gluten: approx. 55,000 tons None Energy concept Central CHP-energy installation Multiple-shift use of energy Biomass boiler Gas Raw materials Grain and sugar syrups Wheat and sugar syrups Raw alcohol Highlight Unrivalled efficiency (CHP) Feedstock flexibility CO 2 -optimised production process using biomass as energy source Individual solutions Dunkirk port area Südzucker Group Investor Update Fixed Income March 2011, page 62

63 Bioethanol: Further EU support fuels potential EU: Renewable Energies Directive Mandatory blending rate for renewable energies of 10% in 2020 in transport sector Introduction of sustainability criteria (i.e. reduction of greenhouse gas emissions by at least 35%) Amendment of the Fuel Quality Directive Technical basis for EU-wide introduction of E10 EU: demand for bioethanol to more than,000 m 3 Development EU bioethanol production 2,000 1,500 1, FRA GER ESP UK POL SWE HUN AUT ITA Others Source: F.O. Licht Fuel ethanol volume in Germany triple by 2020 * Germany: Introduction of E10 from January 1, % of all petrol-engine vehicles can use E10 fuel without any problems German market to grow up to 50% * based on 2009 demand of 4.4 million m 3 Südzucker Group Investor Update Fixed Income March 2011, page 63,000 m 3 1,500 1, Source: BAFA 0.8% 1.1% 1.1% 76.8% 40.2% 19.2% 79.7% 58.7% 22.4% Bioethanol in ETBE Direct blending Bioethanol in E85

64 Bioethanol: The alternative fuel Convenient handling, comparable to fossil fuel Liquid; using existing tanks and station infrastructure Easy filling under atmospheric pressure with existing security systems Established vehicle technology 10% (low blends): no modifications required High blends (E85): FFV modifications cheap with cost of up to 400 /car Non toxic, non hazardous, environmental friendly, sustainable CO 2 Balance sustainable production Plant in Wanze: more than 60% greenhouse gas reduction Planz in Zeitz: more than 35% greenhouse gas reduction (excluding CO 2 plant) Certification according to REDcert (Renewable Energy Directive certification) Co-Products Natural hedge versus increasing input cost High-grade protein food and animal feed reduce imports (i.e. soybeans) Südzucker Group Investor Update Fixed Income March 2011, page 64

65 Price development wheat and maize (Euronext, LIFFE) Wheat price (Future contract August 2011) Price for maize (Future Contract August 2011) / ton Südzucker Group Investor Update Fixed Income March 2011, page 65

66 Segment Fruit: Production facilities Südzucker Group Investor Update Fixed Income March 2011, page 66

67 Financial calender Press and analysts conference for 2010/11 May 18, 2011 Q1 1 st quarter report 2011/12 July 14, 2011 Annual general meeting for fiscal 2010/11 July 21, 2011 Q2 2 nd quarter report 2011/12 October 13, 2011 Q3 3 rd quarter report 2011/12 January 12, 2012 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. Südzucker Group Investor Update Fixed Income March 2011, page 67