Key figures nine months 2015/2016

Transcription

1 FINANCIAL YEAR 215/216 9 m o n t h s / 1 M A R C H TO 3 N o v e m b e r 2 1 5

2 2 Key figures nine months 215/216 O p e r at i n g b u s i n e s s 1/3/215 3/11/215 1/3/214 3/11/214 Change Revenues 1,24 1, EBIT Net income Cash flow from operating activities Investment in property, plant and equipment and intangible assets Bal ance sheet figures 3/11/215 3/11/214 Change Total assets 2,137 2, Shareholders equity 73 1,288 1,361 Equity ratio % 6 6 Debt capital Financial liabilities Cash and cash equivalents Net debt (Cash and cash equivalents less financial liabilities) /3/215 3/11/215 1/3/214 3/11/214 Change Sugar refineries 3 3 Liquid sugar plants 2 2 Bioethanol plants 1 1 Structure figures Sugar plants

3 Content Highlights of the first nine months 215/216 5 Letter from the executive Board 7 Earnings and financial position and net assets 1 C o n s o l i dat e d i n c o m e s tat e m e n t 1 C o n s o l i dat e d s tat e m e n t o f comprehensive income 11 C o n s o l i dat e d c a s h f lo w s tat e m e n t 12 C o n s o l i dat e d b a l a n c e s h e e t 14 C o n s o l i dat e d s tat e m e n t of changes in shareholders equity 15 Financial c alendar Revenues and earnings down In the first nine months of the 215/216 financial year, Nordzucker generated revenues of EUR 1,24.2 million. This was again well below the revenues of EUR 1,457.6 million for the same period in the previous year. In particular, steep declines in prices for quota sugar meant that net income for the period fell from EUR 74.4 million to EUR.4 million. It was possible to avert a loss, however. C a m pa i g n c o m p l e t e d i n a n a v e r a g e o f 8 8 d a y s The Nordzucker Group ended the 215/216 beet campaign on 1 January 216 with average sugar yields albeit with large regional variation. The 13 plants were operating for an average of 88 days, which was considerably shorter than in the previous years. In order to counter market pressure due to oversupply, the acreage for the cultivation of sugar beet was reduced significantly in all of Nordzucker s growing regions in 215. Across the Group, some 12.5 million tonnes of beet were processed in the 13 plants (previous year: 18.3 million tonnes). Clauen in Germany was the last plant to finish the campaign after almost 12 days. 3

4 4 Dr Lars Gorissen Hartwig Fuchs (Chief Executive Officer) Dr Michael Noth Axel Aumüller The E xecu ti v e Boa rd of Nordzucker ag

5 Dear shareholders, The first nine months of the financial year 215/216 were very challenging for Nordzucker. The tense situation on the sugar market had a significant impact on our business. However, we were able to avoid the expected loss thanks to comprehensive cost-cutting measures and the slowly emerging recovery of sugar prices. Altogether the figures are better than expected. In the first nine months, the Nordzucker Group generated revenues of EUR 1,24 million. This is around 17 per cent less than in the previous year. The drop in revenues was the result of the sharp fall in prices for quota sugar and lower sales volumes of non-quota sugar. The operating result (EBIT) amounted to EUR.1 million, compared with EUR 95.4 million in the same period of the previous year. Net income for the period was EUR.4 million, having been at EUR 74.4 million in the same period of the previous year. Overall, we were able to avoid a loss in the first nine months of the financial year. For the full year, the aim is now to continue doing everything possible to avoid slipping into the red on an operational level. However, we still have to assume that this goal will be hard to achieve. Our comprehensive FORCE efficiency programme, which we launched at the beginning of the 215 calendar year, has already delivered initial cost savings and will make a substantial contribution to improving our performance in the years ahead. Our aim is to achieve annual savings of at least EUR 5 million. The focus is on reducing costs in purchasing, production and all administrative areas. However, we are well aware that a mere savings programme is not enough to prepare for the new demands of the market when the quota system expires. We have to ensure that the company is oriented to both customers and the market. To do so, we intend to optimize many of our workflows, not only to make them faster and more cost-effective, but also to improve the quality of our products and services. The campaign that has just been completed was characterized by a stable processing output at all of the plants. This was the result of targeted maintenance and of preparation for longer campaigns intended to run as smoothly as possible. This year s campaign clearly bears the hallmark of the market and demonstrates that we can do both: extremely long campaigns as in the previous year, but also relatively short ones, such as this year. We are able to deal with fluctu ations in the market flexibly, because we have the appropriate technologies at our disposal. In the long-term, we are in a very strong position both technically, financially and in terms of our market strength, and we are therefore confident that we will soon return to profitability. Nordzucker will remain a strong company in the European sugar market after 217. We are counting on your support and your confidence in our company and its development. Yours sincerely, Nordzucker AG The Executive Board Hartwig Fuchs Axel Aumüller Dr Lars Gorissen Dr Michael Noth 5

6 6 Sites in Europe Group H e a d q u a rter s D 1 Braunschweig R egi o n a l H e a d O f f ice DK 2 Copenhagen S u g a r P l a nt s a n d re f inerie s D DK S FIN 3 Clauen 4 Nordstemmen 5 Uelzen 6 Klein Wanzleben 7 Schladen 8 Nakskov 9 Nykøbing 1 Arlöv 11 Örtofta 12 Porkkala 13 Säkylä LT 14 Kèdainiai PL 15 Chełmża 16 Opalenica SK 17 Trenč ianska Teplá D 18 Liquid sugar plant Groß Munzel 19 Liquid sugar plant Nordstemmen s u g a r p l a nts n o n - c o ns o lid a ted M in o rit y s t a k e CZ 2 Dobrovice 21 Ceské Meziříčí o ther l o c a ti o n s D 22 Bioethanol plant, Klein Wanzleben S 23 Köpingebro (Fibrex) DK 24 NP Sweet, Copenhagen B 25 Office Brussels s a l e s o f f ice s LV 26 Riga LT 27 Vilnius EE 28 Tallinn IS 29 Reykjavik NO 3 Oslo IE 31 Dublin GR 32 Athens 32

7 Earnings and financial position and net assets General remarks Revenues and earnings The interim financial statements as of 3 November 215 for Nordzucker AG (Küchenstrasse 9, 381 Braunschweig, Germany) have been prepared in accordance with the International Financial Reporting Standards (IFRS) adopted and published by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee (IFRS IC) as applicable in the European Union (EU-IFRS). The financial statements comply fully with EU-IFRS and give a true and fair view of the net assets, financial and earnings position of Nordzucker AG and its consolidated subsidiaries, joint ventures and associated companies (hereinafter known as Nordzucker Group or Group ). In the first nine months of the 215/216 financial year, the Nordzucker Group generated revenues of EUR 1,24.2 million, approximately 17 per cent less than in the previous year. The fall in revenues was mainly due to much lower prices for quota sugar, but also partly to declining sales volumes of non-quota sugar. Revenues from animal feed were down slightly on the previous year, but higher sales volumes here almost made up for the fall in prices. Bioethanol revenues were up on the same period of the previous year thanks to a significant increase in prices. No changes have been made to the accounting policies used for the preparation of the annual IFRS consolidated financial statements as of 28 February 215. These can be found in the Annual Report 214/215 ( Seasonal sugar production The production of sugar is a seasonal business. The production phase, from the beginning of September until January, is entirely in the second half of the financial year. This should be taken into consideration accordingly when interpreting the results of the first nine months. Production costs came to EUR 1,28.6 million, compared with the figure of EUR 1,188.1 million in the same period of the previous year. Sales in the first nine months of the current financial year were mainly of sugar from the 214/215 campaign. This sugar from the outstanding harvest in 214/215 was measured at comparatively low production costs due to the fall in beet costs. However, this reduction was only able to partly compensate for the drop in revenues. Sales costs decreased slightly due to somewhat lower sales volumes to EUR million (prior-year period: EUR million). Administrative expenses came to EUR 58.8 million, or EUR 3.3 million less than the previous year; this is largely thanks to particularly strict cost controls. Other income decreased to EUR 24.2 million (prior-year period: EUR 33.8 million). Other expenses came to EUR 21.5 million (prior-year period: EUR 24.4 million). Co n s o lidated R ev en ues Co n s olidated EBIT in in 1,5 1, ,24 1,25 1 1, months 214/15 9 months 215/ months 214/15 9 months 215/16 7

8 8 At EUR million, personnel expenses were down significantly on last year (EUR million). Depreciation, amortization and impairment were also much lower than last year (EUR 55.2 million compared with EUR 59.6 million). The operating result (EBIT) of the Nordzucker Group totalled EUR.1 million in the first nine months of the 215/216 financial year, compared with EUR 95.4 million in the same period of the previous year. Financial income of EUR 6.4 million was somewhat below the previous year s figure of EUR 6.8 million. Financial expenses of EUR 5.9 million were down on the previous year s figure of EUR 6.9 million. Overall, consolidated net income for the period fell sharply compared with the same period of the 214/215 financial year to EUR.4 million before minority interests (prior-year period: EUR 74.4 million). A loss for the first nine months of the financial year was therefore avoided. Group bal ance sheet s tructure as of 3 november 215 in 2,5 2,25 2,137 2,137 2, 1,75 1,5 1,25 42 % 6 % 39 % 16 % 19 % 24 % 1, Assets Equity & liabilities Non-current assets Equity Inventories Non-current liabilities Other current assets Current liabilities Co n s o lidated N et debt in Consolidated net income 25 for the period in months 214/15 9 months 215/ /11/214 3/11/215 C ash flow and bal ance sheet Cash flow from operating activities of EUR million in the first nine months of the financial year 215/216 was lower than the previous year s figure (EUR million). This decline was largely due to a fall of EUR 94.8 million in pre-tax earnings against the previous year. This drop in earnings was partly offset by a sharper reduction in working capital in the reporting period and by significantly lower tax payments. Net cash flow from investing activities came to EUR 46.4 million compared with EUR 61.1 million for the same period last year. Lower cash outflows were largely due to lower capital expenditure on items of property, plant and equipment (EUR 4. million compared with EUR 6.1 million), although in 215/216 there were higher payments for investments in financial assets (EUR 5.4 million compared with EUR.5 million). In the 215/216 financial year, Nord zucker acquired a stake of 25 per cent in August Töpfer Zuckerhandels gesellschaft mbh & Co. KG, Hamburg. Cash flow from financing activities came to EUR 6.8 million, and was primarily due to the payment of the dividend for the previous year (previous year: EUR 66.9 million). Cash and cash equivalents rose by EUR 3.8 million, from EUR million in the previous year to EUR million at the end of the first nine months of the financial year 215/216.

9 Total consolidated assets came to EUR 2,137.3 million as of the reporting date of 3 November 215 (3 November 214: EUR 2,267.3 million). Non-current assets fell by EUR 46.3 million to EUR million, primarily due to the impairment losses recognized at the end of the last financial year on intangible assets from the acquisition of the Nordic Sugar Group. Inventories declined by EUR 47. million to EUR 828. million. Receivables and other assets also contributed to the decline in total assets. They fell by EUR 31.1 million to EUR million. The decline in total assets was mirrored on the liabilities side by a fall of EUR 5.9 million in trade payables to EUR million. Shareholders equity came to EUR 1,287.8 million as of the reporting date of 3 November 215, which was EUR 72.9 million less than in the previous year s period (3 November 214: EUR 1,36.7 million), primarily as a result of the reduced value of the business or company after the acquisition of the Nordic Sugar Group in the previous financial year. The fall in the balance sheet total increased the equity ratio from 6. per cent to 6.3 per cent. Cash and cash equivalents exceeded financial liabilities by EUR 16.7 million at the end of the reporting period as of 3 November 215. At the end of the same period in the previous year (3 November 214), the excess amount was EUR 158. million. S u p p l e m e n ta r y r e p o r t There have been no significant changes to the situation of the company for the current year since the end of the reporting period covered by these interim financial statements. Outlook A number of factors are depressing the European sugar markets in the current 215/216 financial year. Global market prices may have recovered somewhat now, but from a longterm perspective, they remain very low. Sugar stocks in the EU were high at the start of the financial year 215/216 and the reduction of land under cultivation by almost all European sugar producers will only have an effect over the course of the current financial year. All producers are fighting hard for market share in order to secure the best possible position for themselves when the sugar market regime expires in 217. Sugar prices have stabilized over the course of the year, however, and bioethanol prices have risen significantly. Nordzucker is still working to strengthen the company. A new efficiency drive was launched at the beginning of the calendar year 215, which should make a substantial contribution to greater performance in the years ahead. The aim is to make yearly savings of at least EUR 5 million. Although sugar prices are still very low, the lost income cannot be passed on to beet suppliers, because until 217, the sugar market regime defines minimum prices for beet. Although the outlook has now improved slightly, we assume that it will be difficult for Nordzucker to close the current financial year 215/216 without reporting a loss. We continue to expect the global and European sugar markets to recover again in the medium term. A further rise in demand for sugar, combined with a flat supply, will ultimately result in higher sugar prices again. Prices for new contracts indeed seem to have reached a floor and customers are becoming more interested in longer-term contracts. Prices for quota sugar rose slightly in the last two quarters and those for bioethanol were up sharply. Nordzucker is adhering to its strategy of examining growth opportunities inside and outside Europe and of maintaining a substantial level of capital expenditure in its European core business. These projects will not have any significant effect on revenues and income in the current financial year 215/216, but may result in additional capital expenditure. Nordzucker is financially very well positioned and so has the ability to make these kinds of investments in the future. 9

10 1 C o n s o l i dat e d f i n a n c i a l s tat e m e n t s N o r d z u ck e r AG C o n s o l i dat e d i n c o m e s tat e m e n t Nordzucker AG, Braunschweig, Germany, for the period from 1 March 215 to 3 November 215 in EUR thousands Revenues Production costs 1/3/215 3/11/215 1/3/214 3/11/214 Change 1,24,229 1,457,55 253,321 1,28,645 1,188, ,467 Gross profit 175, ,438 93,854 Sales costs 119, ,419 1,956 58,769 62,76 3,37 24,24 33,88 9,568 21,539 24,4 2, ,351 95,298 6,353 6, ,887 6,899 1, ,38 94, ,671 2, ,367 73,992 Administrative expenses Other income Other expenses Operating result (EBIT) Financial income Financial expenses Result from companies accounted for using the equity method Earnings before taxes Income taxes Consolidated net income of which attributable to non-controlling interests of which attributable to shareholders of the parent company 343 3,56 2, ,311 71,279 C o n s o l i d at e d s tat e m e n t o f c o m p r e h e n s i v e i n c o m e 1/3/215 3/11/215 1/3/214 3/11/214 Change ,367 73,992 Remeasurement of defined benefit plans 28,655 3,655 59,31 Deferred taxes on items of other comprehensive income not reclassified to the income statement 8,491 9,196 17,687 Other comprehensive income from items not reclassified to the income statement in EUR thousands Consolidated net income 2,164 21,459 41,623 Exchange differences on translating foreign operations 1,75 7,19 8,814 Net result of cash flow hedges 1, Deferred taxes on items of other comprehensive income reclassified to the income statement ,45 6,969 9,419 22,989 45,939 22,95 Other comprehensive income from items reclassified to the income statement Consolidated comprehensive income after taxes of which attributable to non-controlling interests of which attributable to shareholders of the parent company 342 3,8 2,738 22,647 42,859 2,212

11 11 C o n s o l i dat e d c a s h f lo w s tat e m e n t Nordzucker AG, Braunschweig, Germany, for the period from 1 March 215 to 3 November 215 1/3/215 3/11/215 1/3/214 3/11/214 Change 28 95,38 94,758 Interest and similar income 395 1, Interest and similar expenses 4,642 5, ,122 59,444 4,322 Changes in non-current provisions ,919 33,631 Other non-cash expenses/income ,59 Net income from joint ventures ,416 5,418 3, ,618 18,596 61,978 1,347 94,21 95, , Interest paid in the financial year 1,552 1,66 54 Taxes paid in the financial year 1,284 4,46 38, , ,24 57, ,1 6,118 2,117 1,335 2, , ,883 46,432 61,69 14, ,76 68,919 62,159 in EUR thousands Earnings before taxes Depreciation, amortization and impairment/reversals of impairment of non-current assets Changes in current provisions Proceeds on disposal of non-current assets Changes in inventories, trade receivables and other assets not attributable to investing or financing activities Changes in trade payables and other liabilities not attributable to investing or financing activities Interest received in the financial year Cash flow from operating activities Proceeds on disposal of property, plant and equipment Payments for investments in property, plant and equipment Payments for investments in intangible assets Proceeds on disposal of financial assets Payments for investments in financial assets Cash flow for/from investing activities Inflows and outflows arising from changes in equity Payments to shareholders (dividends) Loan repayments 2 2 2,3 2,3 Cash flow from financing activities 6,762 66,896 6,134 Changes in cash and cash equivalents 123,364 16,239 17,125 44,989 58,339 13,35 Proceeds from finance leases Cash and cash equivalents at the beginning of the period Effect of foreign exchange rate changes Cash and cash equivalents at the end of the period , ,48 3,82

12 12 C o n s o l i dat e d b a l a n c e s h e e t as of 3 November 215, Nordzucker AG, Braunschweig, Germany ASSETS in EUR thousands 28/2/215 3/11/215 3/11/214 Non-current assets Fixed assets Intangible assets Property, plant and equipment Investment property 25,323 22,718 6,56 848, ,77 85,444 3,521 2,982 3,715 Financial investments Shares in companies accounted for using the equity method Other financial investments 2,568 7,712 2,788 23,931 23,927 23,81 26,499 31,639 26,589 94, ,46 941,38 Receivables and other assets Financial assets Other assets Deferred taxes 4,792 5,318 14,443 98,989 9,41 955,756 Raw materials, consumables and supplies 53,512 67,734 74,284 Work in progress 47,175 33,354 27, , , , , ,24 874, , , , , ,82 2,832 17,9 Financial assets 13,197 11,62 6,92 Other assets 42,742 45,13 61,289 21, ,73 27,179 Current assets Inventories Finished goods and merchandise Receivables and other assets Trade receivables Receivables from related parties Current income tax receivables Cash and cash equivalents Current Assets Assets held for sale 44, , ,48 1,232,82 1,235,379 1,39,646 1,73 1,5 1,926 1,234,523 1,236,879 1,311,572 2,143,512 2,137,28 2,267,328

13 Equit y and liabilities in EUR thousands 28/2/215 3/11/215 3/11/ , , ,651 Shareholders equity Subscribed capital Capital reserves Retained earnings Other comprehensive income Equity attributable to shareholders of the parent company Non-controlling interests 127,35 127,35 127,35 1,35,64 1,3,86 1,83,634 56,383 33,766 19,924 1,229,97 1,247,726 1,314,396 41,636 4,46 46,31 1,271,543 1,287,772 1,36,76 Non-current provisions and liabilities Provisions for pensions and similar obligations 219, , ,251 Other provisions 33,63 34,29 28,48 Financial liabilities 7,47 7,325 6,385 Liabilities towards related parties 5,5 5,5 5, ,22 8,489 1,473 Other financial liabilities Other liabilities Deferred taxes 83,955 92, , ,37 342, ,572 Provisions for pensions and similar obligations 11,38 11,213 11,241 Other provisions 66,845 64,551 72, ,269 11,887 6, , ,84 382,666 39,777 33,722 39,658 6,35 8,298 3,971 45,12 45,585 48, ,932 57,31 565,5 2,143,512 2,137,28 2,267,328 Current provisions and liabilities Financial liabilities Current income tax liabilities Trade payables Liabilities towards related parties Other financial liabilities Other liabilities 13

14 14 C o n s o l i dat e d s tat e m e n t o f c h a n g e s in shareholders equity Nordzucker AG, Braunschweig, Germany in EUR thousands Subscribed capital As of 1/3/ ,651 Net income Retained earnings Other comprehensive income 127,35 1,77,9 8,528 Capital reserves 71,311 Other comprehensive income 28,452 Consolidated comprehensive income 71,311 Dividend payment 28,452 62,792 Other 1,894 NonEquity attributable to shareholders of controlling interests the parent company Total equity 1,336,223 49,595 71,311 3,56 1,385,818 74,367 28, ,428 42,859 3,8 45,939 62,792 6,128 68,92 1, ,131 As of 3/11/ , ,35 1,83,634 19,924 1,314,396 46,31 1,36,76 As of 1/3/ , ,35 1,35,64 56,383 1,229,97 41,636 1,271, ,617 22, ,614 22,617 22, ,989 4,83 1,93 6,76 1,247,726 4,46 1,287,772 Net income 32 Other comprehensive income Consolidated comprehensive income 32 Dividend payment As of 3/11/215 4,83 123, ,35 1,3,86 33,766

15 Financial c alendar 24 May 216 Publication of the Annual Report 215/16 o n l i n e p u b l i c at i o n s The following publications can be downloaded from > Annual Reports and Interim Reports > Declaration of compliance > Letter to shareholders Subscribe to the Interim Report at 15

16 Nordzucker AG Küchenstrasse Braunschweig Germany Telephone: +49 () Fax: +49 () info@nordzucker.de Corporate Communications Christian Kionka Telephone: +49 () pr@nordzucker.de Investor Relations Bianca Deppe-Leickel Telephone: +49 () ir@nordzucker.de Shares register Nicole Riedel-Elias Telephone: +49 () aktien@nordzucker.de Printed copies of this interim Report for the Nordzucker Group are also available in German. Alternatively, the report is available online in German or English and can be downloaded as a PDF at from the Download Centre.