SüdzuckerGroup Nikolai Baltruschat (Head of Investor Relations) quirin bank AG Sales Force Briefing Frankfurt, July24, 2014

Transcription

1 SüdzuckerGroup Nikolai Baltruschat (Head of Investor Relations) quirin bank AG Sales Force Briefing Frankfurt, July24, 2014

2 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, 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. IFRS 11 application as of financial year 2013/14. Written and visual value statements are standardized as follows: ±1% stable / ±1-4% slight / ±4-10% moderate / >/< 10% significant Südzucker Group, page 2

3 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 30 CropEnergies page 38 Fruit page43 4. Financial Highlights Q1 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 68 Additional information page 78 Südzucker Group, page 3

4 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 Revenues: 7,533 bn 1 Operating profit: Production facilities: ~ 100 Employees: ~ Beneficiary of mega trends within food, animal feed and energy area Stock exchangelistingin Germany MDAX-member Trading volume: ~ 1.2 mn shares/day 1 IFRS 11 adjusted Market Cap and Shareholder Structure* Zucker Invest GmbH (10%) Südzucker indirect via Z&S (43%) Agrana ~1.2 bn Free float (38%) Südzucker ~3.2 bn SZVG** (52%) Südzucker direct (~7%) Free float (7%) Südzucker (69%) Crop Energies ~400 mn Z&S*** (86%) SZVG* Free float (7%) (24%) * May 2014 ** Süddeutsche Zuckerrübenverwertungs-Genossenschaft eg *** Z&S Zucker und Stärke Holding AG (~50% Südzucker, ~50% ZBG (Zucker- Beteiligungsgesellschaft m.b.h.)) Südzucker Group, page 4

5 Group Key Figuresremainon high level (mn ) 2010/ / / /14 Revenues EBITDA EBITDA-Margin 12,6% 14,5% 15,8% 11,8% Operating profit Operating Margin 8,5% 10,7% 12,3% 8,3% Restructuring and special items Income from operations (EBIT) Cash flow Net Financial Debt Equity Ratio 50,8% 47,9% 53,7% 53,8% Total investments Capital Employed RoCE 9,8% 13,2% 16,3% 10,6% Earnings per share ( ) 1,33 1,99 3,08 1,38 Cashflow per share ( ) 2,92 3,20 4,88 3,41 Dividend per share ( ) 0,55 0,70 0,90 0,50 ** * * IFRS 11 adjusted ** incl. one-off positive tax effectof 0.40 Südzucker Group, page 5

6 Key Figures 2013/14* (mn ) Sugar Special Prod. CropEnergies Fruit Group Revenues EBITDA EBITDA-Margin 14,3% 9,0% 9,5% 9,0% 11,8% Depreciation Operating profit Operating Margin 11,2% 4,9% 4,9% 5,5% 8,3% Cash flow 697 Investments in fixed assets Capital Employed RoCE (incl. Goodwill) 13,7% 6,3% 6,4% 8,1% 10,6% RoCE (excl. Goodwill) 18,1% 8,0% 6,4% 9,2% 13,2% Equity Ratio 53,8% Gearing (NFD/Equity) 11,5% Earnings per share ( ) 1,38 Dividend per share ( ) 0,50 * IFRS 11 adjusted Südzucker Group, page 6

7 Return on Capital Employed(RoCE) 2009/ / / / /14* Sugar 7.5% 10.4% 17.1% 22.4% 13.7% Segments Special Prod. CropEnergies 10.5% 2.3% 10.8% 8.7% 10.7% 10.2% 9.5% 17.3% 6.3% 6.4% Fruit 5.5% 6.7% 4.7% 5.0% 8.1% RoCE 7.5% 9.8% 13.2% 16.3% 10.6% Group Operating Profit 403 mn 521 mn 751 mn 972 mn 622 mn Capital Employed 5,374 mn 5,314 mn 5,707 mn 5,950 mn 5,874 mn * IFRS 11 adjusted Südzucker Group, page 7

8 Leading Market Positions and clear 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 bioethanol 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 Market share expansion through new facilities Development of product portfolio and regions Full exploitation of implemented capacity build-up Consolidation of the leading position Integration of Ensus Take full benefit of global increase in demand for healthy food and upmarket products through new facilities (e.g. USA) Usage of integrated platform to raise synergies in combined global sourcing and distribution New platform with Austria Juice supports growth and profitability Südzucker Group, page 8

9 Portfolio benefits from megatrends mn t USD 8,000 6,000 4,000 2,000 sugarconsumption worldwide population growth worldwide 211, , ,000 91,000 51,000 11,000 8,000 6,000 4,000 2,000,0 per capita income worldwide emerging markets Sources: United Nations, F.O. Licht Source: ERS International Macroeconomic Data Set mn barrel / day USD / barrel mn t 100 oil consumption global animal feed production 20 0 crude oil price Source: BP Source: USDA Südzucker Group, page 9

10 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 30 CropEnergies page 38 Fruit page43 4. Financial Highlights Q1 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 68 Additional information page 78 Südzucker Group, page 10

11 Rating Rating agency Long-term rating Short-term rating BBB * Stable Outlook ** A 2 Baa2*** StableOutlook **** P 2 * since 20 June 2014 ** since 27 March 2014 *** since17 June 2014 **** since 28 November 2013 Südzucker Group, page 11

12 Comfortable liquidity position (mn ) * Net financial debt Cash & Cash equivalents / securities Gross financial debt Long-term financial debt Short-term financial debt Bank credit lines: undrawn Syndicated loan facility undrawn Syndicated loan facility Agrana undrawn Commercial paper program undrawn = Total liquidity reserves * IFRS 11 adjusted Südzucker Group, page 12

13 Financingmaturityprofile* (mn ) asof May 31, ** EUR-Bond Promissory Note Südzucker Syndicated loan 2013/ mn (back-up facility) Agrana Syndicated loan 2014/ mn Commercial Paper Programm 600 mn (perpetual) Hybrid Bond 700 mn (perpetual) 5.25 % before June 2015 / since June M-Euribor bp margin * Displayedto2019; 10-year trancheof Agrana promissorynotein theamountof 7 mn due in 2022 ** in Q1 2014/15 redeemed Südzucker Group, page 13

14 Hybrid bond 2005 / cash flow covenant (mn ) 2005/ / / / / / / / / /15e Revenues ~ Cash flow > 450 Cash flow / Revenues 9,9% 9,6% 8,6% 8,6% 9,7% 9,8% 11,8% 12,6% 9,3% > 6,5% * IFRS 11 adjusted * Cash flowcovenant(cash flow/ revenues>5 %) so farsignificantlyexceeded Cash flow covenant fulfillment also expected in 2014/15 Options for hybrid bond(depending on continuous financial planning): Open market tenderat anytime ( 6 (7)) First time callpossibilityjune 2015 ( 6 (5) & (6)); condition: Instrument replacementin 12m period before No action: Variable coupon based on 3M-Euribor bp margin Currently preferred option no action Südzucker Group, page 14

15 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 30 CropEnergies page 38 Fruit page43 4. Financial Highlights Q1 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 68 Additional information page 78 Südzucker Group, page 15

16 Segment Sugar: Key figures (mn ) 2010/ / / /14 Revenues EBITDA EBITDA-Margin 12,2% 16,8% 19,6% 14,3% Operating profit Operating Margin 8,7% 13,7% 16,7% 11,2% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,4% 17,1% 22,4% 13,7% * * IFRS 11 adjusted Südzucker Group, page 16

17 EU sugarmarket* -supplyanddemand World Market EU Production EU Demand World Market Quota sugar ~16-17 mn t CAGR 2-3% Demand** 176 mn t ~13 mn t o/w SZ 3.2 mn t 3-4 mn t o/w SZ: Mauritius ~0.4 mn t Raw sugar imports for raffination through SZ ~0.3 mn t Production** 181 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 2013/14, June 2014 Südzucker Group, page 17

18 Segment Sugar Market environment(i): World market World Sugar Balance (mn t) Sugar world market price( /t) White sugar / / / /14e 36.1% * 38.5% * 42.3% * 43.3% * Production Consumption Endng stock *Endingstock in % of consumption World sugar market well supplied 250 May-12 Nov-12 May-13 Nov-13 May-14 Low sugarworldmarketprice Südzucker Group, page 18

19 Segment Sugar Market environment(ii): EU Influenceoflowworldmarketpricevia imports High EU quota sugar inventories through EU commission measures(1.2 mn t) Decreasingsharesofannualcontracts, higher share of short term contracts respectively supply via spot market Significantly lower EU sugar pricing EU quota sugar inventory(mn t) Sept.'07 Sept.'08 Sept.'09 Sept.'10 Sept.'11 Sept.'12 Sept.'13 Price reporting EU-KOM ( /t) 750 Increasingly more difficult market environment Fulleffectin FY 2014/15 andlater Jul-13 Oct-13 Jan-14 Apr-14 Südzucker Group, page 19

20 EU quota sugar production- sugar marketing year* 2013/14 Market share** EU quota sugar production Südzucker quota share per country(in %) Südzucker Group (24 %) Nordzucker (15 %) Great Britain Poland Tereos (11 %) Belgium72 Germany Czech Republic 39 Slovakia Moldova British Sugar (11 %) 20 France 100 Austria 100 Hungary 35 Rumania All others (16 %) 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 20 Südzucker distribution entities Non-EU production

21 Mauritius cooperation strengthens distribution power in the EU Exclusivedistributorof ~ 400,000 tonnesp.a. sugarcontingentfrommauritius intotheeu until 2015 Imported sugar volumew Wleverages European distribution platform Wsupports core regions Wsupports marketposition in European deficit markets 400,000 tonnes sugar Distribution power of Südzucker Group builds on ~ 5.0 milliontonnessugar(consistingof production of quota sugar, industrial sugar and refined sugar as well as imported sugar from Mauritius) Mauritius Südzucker Group, page 21

22 Participation in ED&F Man offers a global footprint Private, employee owned company, founded 1783 ~ 3,400 employeesin 60 countries Revenues: 9 bnusd Profit from ordinary activities: 299 mn USD Operations: Sugar: Approx. 9 mnt tradingvolumewith significantpresencein Central and South America, Far East, South East Asia and Africa Sugar only Liquid Products only Coffee only Multiple businesses 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 22

23 EU sugar and agriculturial policy road map June 2013: Decision about CAP and EU sugar policy Common Agricultural Policy (CAP) : GAP ratification in accordance witheu-council of Ministers Transition Period into... A new EU sugar policy EU sugar policy: Extension to 30 September 2017 New market framework 1 October 2017 Quota reduction Run-time: until 30 September 2015 Extension for sugar and isoglucose quota Confirmation of overall framework Noquotaforsugarorisoglucose Liberalised EU sugar marketw Wbut EU borderprotectionstill in place Südzucker Group, page 23

24 Segment Sugar: Mid term Outlook (I) EU sugar policy until 30 September 2017 Extension sugar and isoglucose quota Quota sugar: Minimum beet price Contractual duty between industry and farmer Specification of EU-Toolbox : Market withdrawals, convertion of nonquota into quota sugar, import tender Exports limited to about 1.4 mnt p.a. New market framework 1 October 2017 Elimination of sugar and isoglucose quota No minimum beet price Contractual duty between industry and farmer Temporary options: Private storage No export restrictions Further measures (e.g. security net ) require resolution Border Protection: unchanged Import duty 419 /t (white sugar) resp. 339 /t (raw sugar) from non-preferential countries Preferential agreements with LDC-/ACP- and Andean countries: unchanged Südzucker Group, page 24

25 Segment Sugar: Mid term Outlook (II) EU sugar demand currently served by EU sugardemandasof October1, 2017 served by EU beet sugar 70 % EU sugar demand 19 mn t EU beet sugar 10 % EU sugar demand 19 mn t Imports 16 % Quota EU isoglucose 4 % Non-Quota Max. Export Volume (WTO): about 1.4 mn t No export restrictions Südzucker Group, page 25

26 Segment Sugar: Implications for Südzucker Opportunities Südzucker is in good starting position as largest producer with focus on best growing regions Only limited effort needed to increase and extend current production level (with high entry barrier at the same time) Utilization of current European logistic network to optimize sugar distribution and development of new markets Investment program to exploit future market potential (e.g. starch) Strengthening and extension of cooperations (e.g. ED&F Man, LDC/ACP producer) Challenges Stronger competition, possibly also from Isoglucose Further EU free trade agreements with third party countries Raw material security in increasingly more volatile market environment Volatility in world market price and volume with stronger influence on EU market Südzucker Group, page 26

27 Segment Sugar: Outlook 2014/15 Revenues Price reduction with all-the year effect Increased trend towards spot business Significant revenue decrease(previous year*: 3,901 mn ) Operating Profit Decreasing price level in light of increasingly worsening economic environment in EU sugar market Burdenfromincreasein fixedcostsper tonne due toonceagain shorter campaign 2013 Significant decrease to about 100 mn (Previous year*: 436 mn ) * 2013/14 adjusted for IFRS 11 effects Südzucker Group, page 27

28 Segment Sugar: Mid term Outlook Global demand trend of ~ 2% p.a. growth intact (population growth, increase in per-capita incomew) Recovery of world market price Temporary EU market distortion in transition period Strong marketposition in combination with strong foothold in bestgrowing area in the centre of demand Necessary efficiency improvements Increase in production ~120 days (fixed cost degression) Omission of EU minimum beet price/ flexible beet price payment Cost savings program Capex Maintenance Administration (further centralization) No restrictions on exports anymore (partnership with ED&F Man) Operating Profit Perspective ~ 250 mn ~ 100 mn 2014/15 mid term Südzucker Group, page 28

29 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 30 CropEnergies page 38 Fruit page43 4. Financial Highlights Q1 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 68 Additional information page 78 Südzucker Group, page 29

30 Segment Special Products: Key figures (mn ) 2010/ / / /14 Revenues EBITDA EBITDA-Margin 13,8% 12,8% 11,5% 9,0% Operating profit Operating Margin 9,1% 8,3% 7,1% 4,9% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,8% 10,7% 9,5% 6,3% * * IFRS 11 adjusted Südzucker Group, page 30

31 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 1,283 Starch* 40% 1,427 Revenues (mn ) 1,396 Revenue split 2013/14* PortionPack 8% 1,740 mn 1,575 1,806 Freiberger 29% BENEO (Functional Food) 23% * IFRS 11 adjusted ** incorporates AGRANA bioethanol and starch activities 1, / / / / / /14 * Südzucker Group, page 31

32 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, W Sales Offices Regional Centers Production facility Exploitation of growth potential of our core products Development of new markets via innovations Offstein Südzucker Group, page 32

33 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 Commisioning of new Agrana starch factory for production of wheat starch and gluten at the site of bioethanolplant in Pischelsdorf(June 2013). Investment of 70 mn. Capacityfor107,000 t wheat starch, 23,500 t wheat gluten, 55,000 t wheat bran and 70,000 t of material substitutes ( B+C starch ) for bioethanol. New modular concept with new Südzuckerstarch factory planned at the site of bioethanolplant in Zeitz. Comissioningplanned in Investment of 125 mn. Capacity for up to 140,000 t wheat starch products. Gmünd (A) Aschach (A) Pischelsdorf (A) Szabadegyhaza(HU) Tandarei (RO) Production starch Production bioethanol * incorporates AGRANA bioethanol and starch activities Pischelsdorf Südzucker Group, page 33

34 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 34

35 Segment Special Products: Division PortionPack Europe European market leader in individually packaged portions for the food and non-food sectors 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 and the advertising/promotion sectors Telford Oud-Beijerland (NL) Herentals (B) Nuremberg Landgraaf (NL) Prague Krakow Barcelona facility Prague Südzucker Group, page 35

36 Segment Special Products: Outlook 2014/15 Revenues Divisions Freiberger, Beneo and PortionPack overall performance tobestable Division starch with slight decrease Slight decrease in revenues (Previous year*: 1,740 mn ) Operating Profit Divisions Freiberger, Beneoand PortionPackoverall performance to be stable Division starch: Lower prices to burden ethanol business Omission of start-up losses of wheat starch plant Moderate decrease in operating profit (Previous year*: 85 mn ) * 2013/14 adjusted for IFRS 11 effects Südzucker Group, page 36

37 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 30 CropEnergies page 38 Fruit page43 4. Financial Highlights Q1 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 68 Additional information page 78 Südzucker Group, page 37

38 Segment CropEnergies: Key figures (mn ) 2010/ / / /14 Revenues EBITDA EBITDA-Margin 17,5% 15,9% 18,5% 9,5% Operating profit Operating Margin 10,5% 10,0% 13,5% 4,9% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 8,7% 10,2% 17,3% 6,4% * * IFRS 11 adjusted Südzucker Group, page 38

39 Segment CropEnergies: Development 2013/14 (II) Market development: Only moderate decreasing grain prices Decrease in fuel demand EU announces stop of temporary tax-free preferentialimportsandus importsvia Norwayby-passingcurrent tax ruling. Strong ethanol price decrease since autumn 2013 Acquisition Ensus: Boost of nominal capacity by 400,000 m 3 p.a. to ~1.2 mnm 3 p.a. bioethanol and production of food and animal feed to ~1 mnt p.a. Capexprogram60 mn ; efficiencygains and increase in purchase and sales flexibility Quotation: Platts fuel-etoht2 /m Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Wilton Houston Rotterdam Loon-Plage Wanze Duisburg Zeitz São Paulo Production facility Tank storage Trading Südzucker Group, page 39

40 EU biofuels market and policy Amendment of Renewable Energies Directive and Fuel Quality Directive In light of current discussions member states do not increase blending quotas at this point in time European council agreement in June 2014 prepares for second reading in EU Parliament (in 1,000 m 3 ) EU: Market potential and market reality 15,000 12,500 Market NAP 10,000 7,500 5,000 2,500, Source: National action plans of EU Member States (2010); F.O. Licht (2014) Politics Germany: Adjustment towards green house gas reduction targets in 2015 Belgium: New program for biofuel usage Great Britain: Reluctance for E10 introduction in light of ongoing EU debate Südzucker Group, page 40

41 Segment CropEnergies: Outlook 2014/15 Revenues Increase in production and sales of bioethanol, food and animal feed via new production site Ensus and further optimization in production facilities Revenue increasetoabove800 mn (Previousyear*: 720 mn ) Operating Profit High volatility in bioethanoland raw material pricing impede forecast High price sensitivity; 10 price change per cubicmeter bioethanol leads to about 10 mn earnings impact Operating profitisexpectedin a rangeof-30 to +20 mn (Previous year*: 36 mn ) EBITDA in rangeof+10 to+60 mn (Previousyear*: 69 mn ) * 2013/14 adjusted for IFRS 11 effects Südzucker Group, page 41

42 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 30 CropEnergies page 38 Fruit page43 4. Financial Highlights Q1 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 68 Additional information page 78 Südzucker Group, page 42

43 Segment Fruit: Key figures (mn ) 2010/ / / /14 Revenues EBITDA EBITDA-Margin 9,4% 7,9% 7,3% 9,0% Operating profit Operating Margin 5,4% 4,1% 4,0% 5,5% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 6,7% 4,7% 5,0% 8,1% * * IFRS 11 adjusted Südzucker Group, page 43

44 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 Shared customer base with segments/divisions sugar, BENEO and starch 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 in Central Europe New US facility for fruit preparations Total investments 30 mn Production capacity 45,000 tonnes annually Production facility AGRANA FruitS.A.S. Fruit preparations ~75% of segment revenues ⅓ of worldmarket 26 facilities worldwide AGRANA J&F Holding GmbH AUSTRIA JUICE GmbH Fruit juice concentrates ~25% of segment revenues European market leader 14 facilities worldwide Südzucker Group, page 44

45 Division Fruit Preparations: Fourth production site USA US market offers average annual growth of about 6 % in contrast to the flat European market, particularly in view of the trend toward fruit yoghurts containing a high proportion of fruit preparation. Expanding market presence in North America by constructing a fruit preparation plant in Lysander, NY(Northeastern region of the US). Production started 31 March 2014 New facility will serve as a response to rising customer demandin Canada and the Northeastern Region of the US New production capacity of 45,000 t p.a. Total investment amounts to around 30 million Production facility Südzucker Group, page 45

46 Segment Fruit: Outlook 2014/15 Revenues Slightly lower revenues in division fruit juice concentrates compensatedbyhighervolumesin divisionfruitpreparationsin all main regions Revenues on prior year s level(previous year: 1,172 mn ) Operating Profit Earnings improvement in division fruit preparations despite start-up lossesofnewus plant Slightly lower earnings in division fruit juice concentrates Operating profit on prior year s level(previous year: 65 mn ) Südzucker Group, page 46

47 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 30 CropEnergies page 38 Fruit page43 4. Financial Highlights Q1 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 68 Additional information page 78 Südzucker Group, page 47

48 Group income statement 1 st quarter (mn ) 2014/ /14 +/- in % Revenues ,4 EBITDA ,7 EBITDA margin 8,2% 13,6% Depreciation ,7 Operating profit ,6 Operating margin 5,4% 11,1% Restructuring costs and special items 0 0 0,0 Income from companies consolidated at equity ,0 Income from operations ,2 Net earnings for the period attributable to Südzucker shareholders ,8 Earnings per share ( ) (undiluted) 0,24 0,64-62,5 Cash flow ,1 Investments in fixed assets* ,2 Net financial debt (as of reporting date) ,8 Average number of employees ,2 * Including intangible assets Südzucker Group, page 48

49 Financial Highlights Q1 2014/15 Group revenues reached 1,773 (1,979) million Operating profit decreased57 % to96 (220) million Cash flow declined 39 % to152 (250) million Earnings per sharedecreased to0.24 (0.64) Net financial debtincreased by 59 million to670 (611) million Südzucker Group, page 49

50 Segment Sugar: Development Q1 2014/15 1 st quarter (mn ) 2014/ /14 +/- in % Revenues ,7 EBITDA ,6 EBITDA margin 6,9% 16,8% Depreciation ,7 Operating profit ,7 Operating margin 5,2% 15,3% Revenues: Operating profit: Revenues decreased mainly driven by the decline in quota sugar sales revenues. Quota sugar volumes increased. World market prices for non-quota sugar below last year s level drove export prices down. Decreaseprimarily due to significantly lower quota sugar sales revenues, especially in Southern and Eastern European markets. Beet cultivation and harvestexpectations:südzuckergroup s beet cultivation area for 2014 expanded by 1%. Harvest expected to reach average of last 5 years. Südzucker Group, page 50

51 Segment Special Products: Development Q1 2014/15 1 st quarter (mn ) 2014/ /14 +/- in % Revenues ,1 EBITDA ,1 EBITDA margin 9,9% 8,6% Depreciation ,4 Operating profit ,0 Operating margin 5,7% 4,8% Revenues: Operating profit: Slightly down from last year due mainly to lower sales revenues. Increase thanks to lower costs and stable volume development. Südzucker Group, page 51

52 Segment CropEnergies: Development Q1 2014/15 1 st quarter (mn ) 2014/ /14 +/- in % Revenues ,4 EBITDA ,8 EBITDA margin 7,0% 13,8% Depreciation ,5 Operating profit ,2 Operating margin 2,3% 9,1% Revenues: Operating profit: Increasedespite significantly lower ethanol sales revenues thanks to considerably higher bioethanol and feed/food volumes, which werelargely attributable to Ensus. Lowernet raw material costs and higher volumes were not enough to fully offset the sharp drop in ethanol sales revenues. Südzucker Group, page 52

53 Segment Fruit: Development Q1 2014/15 1 st quarter (mn ) 2014/ /14 +/- in % Revenues ,5 EBITDA ,8 EBITDA margin 10,5% 10,1% Depreciation ,3 Operating profit ,2 Operating margin 7,5% 7,4% Revenues: Operating profit: Restructuring: Volumes unchanged in fruit preparations; however, foreign currency effects due to a stronger euro led to decline in revenues. Lower revenues in fruit juice concentrates due to lower volumes as well as lower selling prices for apple juice concentrate. Stableoperatingmarginforfruit preparations and fruit juice concentrates, which, among other things, confirms that the measures initiated in previous years to cut material and structural costs have been successfully implemented. Closing of fruit preparation factory Kröllendorfand focus on the production site Gleisdorf. Südzucker Group, page 53

54 Income statement (I) 1 st quarter (mn ) 2014/ /14 +/- in % Revenues ,4 Operating profit ,6 Restructuring costs and special items Income from companies consolidated at equity ,0 Income from operations ,2 Financial result ,0 Earnings before income taxes ,8 Income from companies consolidated at equity: Comprise mainly the share of earnings from trading company ED&F Man, StudenGroup and a joint-venture segment distributor, plus the share of earnings from the starch business of Hungrana Group. Financial result: Net interest expense was -11 (-10) million with slightly higher average debt. Other financial result of 4 (-4) million ; the financing of subsidiaries and euro/us dollar exchange rate trends in emerging countries significantly contributed to this in both the current and prior year. Südzucker Group, page 54

55 Income statement (II) 1 st quarter (mn ) 2014/ /14 +/- in % Earnings before income taxes ,8 Taxes on income ,7 Net earnings for the year ,2 of which attributable to Südzucker AG shareholders ,8 of which attributable to hybrid capital 7 7 0,0 of which attributable to minority interests ,0 Earnings per share ( ) 0,24 0,64-62,5 Taxeson income: Tax rate was 22 % (23) %. Minority interests: The co-owners of AGRANA and CropEnergies account for most of the other minority interests share of net earnings. Earningsper share(eps): Decreasedto 0.24 (0.64 ). Südzucker Group, page 55

56 Cash flow statement 1 st quarter (mn ) 2014/ /14 +/- in % Cash flow ,1 Increase (-)/ Decrease (+) in working capital ,2 Investments in fixed assets Sugar segment ,5 Special products segment ,0 CropEnergies segment 3 3-3,6 Fruit segment ,8 Total investments in fixed assets ,2 Investments in financial assets/acquisitions ,0 Total investments ,1 Increases in stakes held in subsidiaries Capital increase/decrease Dividends paid Cash flow: Cash flow mainly tracked EBIT and came in below the previous year s level. Working capital: Lower funds lockup through minor increase in working capital is due to price and volume-related lower inventories and trade receivables. Investments: Sugar: Mainly allocated toward replacement spending and investments to improve energy efficiency. Special products: Primarily due to the construction of the starch factory in Zeitzand a biomass boiler at the BENEO site in Permuco, Chile. CropEnergies: Optimization of production systems. Fruit: mainly in the fruit preparations area. Südzucker Group, page 56

57 Balance sheet (mn ) /- in % Assets Non-current assets ,1 Current assets ,7 Total assets ,7 Liabilities and shareholders' equity Shareholders' equity ,3 Non-current liabilities ,4 Current liabilities ,1 Total liabilities and shareholders' equity ,7 Net financial debt ,8 Equity ratio 57% 58% Net financial debt in percent of equity (gearing) 14% 13% Currentassets: Decline of 279 million. The main reason for this is the price and volume-driven reduction in inventories, especially in the sugar segment. In addition, trade receivables were lower due to weaker prices. Net financial debt: Net financial debt rose 59 million to 670 (611) million. The ratio of net financial debt to equity was 14 (13) %. Südzucker Group, page 57

58 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 30 CropEnergies page 38 Fruit page43 4. Financial Highlights Q1 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 68 Additional information page 78 Südzucker Group, page 58

59 Bridge (I) Income statement figures adjusted accounting changes due to IFRS 11 figures presented mn 2013/ /14 Revenues EBITDA Depreciation Operating profit Result from restructuring and special items Income from companies consolidated at equity Income from operations Income from companies consolidated at equity Financial result Earnings before income taxes Taxes on income Net earnings Affected joint ventures Studen (Segment sugar) Hungrana (Segment special products) CT Biocarbonic (Segment CropEnergies) At-equity instead of prorata consolidation since Südzucker Group, page 59

60 Bridge IFRS (II) Segment data figures adjusted accounting changes due to IFRS 11 figures presented mn 2013/ /14 Fruit CropEn. Special Pr. Sugar Group Revenues Operating profit Revenues Operating profit Revenues Operating profit Revenues Operating profit Revenues Operating profit Südzucker Group, page 60

61 Outlook 2014/15 (I) Revenues 2013/14* 2014/15e Operating Profit 2013/14* 2014/15e Sugar 3.9 bn 438 mn ~100 mn Special Products 1.7 bn 85 mn CropEnergies 720 mn >800 mn 35 mn -30 to +20 mn Fruit 1.2 bn 65 mn Group 7.5 bn ~ 7.0bn 622 mn ~ 200mn * IFRS 11 adjusted Südzucker Group, page 61

62 Outlook 2014/15 (II) 2013/14* 2014/15e 212/13e EBITDA 889 mn ~ 500 mn Investments Fixed Assets Investments Finan. Assets Step-up subsidiaries 377 mn 22 mn 193 mn ~ mn - ~ 30 mn ** RoCE 10.6 % * IFRS 11 adjusted ** Purchase Agrana bioethanol minorities Südzucker Group, page 62

63 Outlook 2014/15 (III) 2013/14* 2014/15e 212/13e Net Financial Debt 536 mn ~ mn Cash flow 697 mn >450 mn Cash flow / Revenues 9.3 % >6.5 % Equity ratio 53.8 % ~ 53 % * IFRS 11 adjusted Südzucker Group, page 63

64 Summary Financial Year 2014/15 Burden mainly from temporary difficult market environment in sugar and ethanol markets lead to significant operating profit decrease on group level Continuation of high capex level to secure future growth New starch and neutral alcohol plants to enlarge Zeitz site Launch of fourth fruit preparations plant to enforce market presence in USA Ongoing very solid balance sheet figures Comfortable liquidity position Südzucker Group, page 64

65 Mid term Outlook (I) Group Operating Profit Fruit Special Products Crop Energies Launch USA Volume growth parallel to market growth Ensus: Utilization and efficiency gains Normalisation ethanol pricing ~ 550 mn ~ 200 mn 2014/15 Sugar Recovery wm price Market equilibrium Cost savings Utilization Pischelsdorf Launch Zeitz Biomass boiler Chile Mid term Megatrends intact (population growth, increase in per-capita income...) Südzucker Group, page 65

66 Mid termoutlook (II) Group EBITDA andcapex ~ mn ~ 850 mn Room for manoeuvre Growth ~ 500 mn Maintenance Maintenance ~250 mn EBITDA Capex EBITDA Capex 2014/15 mid term Südzucker Group, page 66

67 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 30 CropEnergies page 38 Fruit page43 4. Financial Highlights Q1 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 68 Additional information page 78 Südzucker Group, page 67

68 Long-term development (I) Pre-Reform Transition Period Post-Transition Period Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Outlook (mn ) 2004/ / / / / / / / / / /14e Revenues ~ 7,000 EBITDA ~ 500 EBITDA-Margin 15,0% 12,5% 11,8% 8,5% 8,3% 11,3% 12,6% 14,5% 15,8% 11,8% Operating profit ~ 200 Operating Margin 10,8% 8,4% 7,3% 4,0% 4,4% 7,0% 8,5% 10,7% 12,3% 8,3% Income from operations (EBIT) ** Earnings before income taxes (EBT) Net earnings thereof to SZ AG shareholders Market capitalization Closing price on February 28/29 16,18 22,21 15,97 14,50 13,66 17,06 19,90 21,75 33,55 20,15 Earnings per share ( ) 1,67 1,36-1,72 0,10 0,86 1,06 1,33 1,99 3,08 1,38 Dividend per share ( ) 0,55 0,55 0,55 0,40 0,40 0,45 0,55 0,70 0,90 0,50 Cash flow > 450 Investments total ~ Capital Employed RoCE 11,3% 8,6% 8,8% 4,7% 5,2% 7,5% 9,8% 13,2% 16,3% 10,6% Total Assets Equity Equity Ratio 38,1% 47,1% 42,4% 41,7% 41,9% 46,5% 50,8% 47,9% 53,7% 53,8% ~ 53% Net Financial Debt (NFD) ~ Gearing (NFD/Equity) 61,1% 31,5% 24,1% 45,7% 50,5% 30,9% 23,2% 19,9% 9,8% 11,5% * *** * IFRS 11 adjusted ** Extraordinary impact from Goodwill impairment loss. *** Capex(excluding investments in financial assets). Südzucker Group, page 68

69 Long-term development (II) Cash flow (mn ) Revenues (bn ) * > * ~7.0 Net Financial Debt (mn ) 1,508 1,632 1,177 1, ~ * 450 Operating Profit (mn ) * ~200 NFD/CF 2.2x 1.5x 3.0x 3.2x 1.9x 1.4x 1.0x 0.5x 0.8x * IFRS 11 adjusted Sugar Special Products CropEnergies Fruit Südzucker Group, page 69

70 Return on Capital Employed(RoCE) 2009/ / / / /14* 2014/15e Sugar 7.5% 10.4% 17.1% 22.4% 13.7% Segments Special Prod. CropEnergies 10.5% 2.3% 10.8% 8.7% 10.7% 10.2% 9.5% 17.3% 6.3% 6.4% Fruit 5.5% 6.7% 4.7% 5.0% 8.1% RoCE 7.5% 9.8% 13.2% 16.3% 10.6% Group Operating Profit 403 mn 521 mn 751 mn 972 mn 622 mn ~200 mn Capital Employed 5,374 mn 5,314 mn 5,707 mn 5,950 mn 5,874 mn * IFRS 11 adjusted Südzucker Group, page 70

71 Breakdown of Capital Employed (2013/14)* Breakdown by assets Breakdown by segments 21% 14% 9% 46% 5,874 mn 5,874mn 54% 33% 23% Goodwill Working Capital Fixed assets Sugar CropEnergies Special Products Fruit * IFRS 11 adjusted Südzucker Group, page 71

72 Südzucker with strong capital market presence Südzucker Bonds Südzucker Share 36% 7% 10% Financial liabilities* 52% mn shares 38% 57% (mn ) Liabilities to banks Others Bonds Due date Coupon Nominal value SZVG Zucker Invest GmbH Free Float Key figures as of 31 May 2014 Bond 2011/ ,125% 400,0 Hybrid bond 2005/15 * asof February28, 2014 incl. hybrid bond ** firstissuercallrightbysüdzucker asof 30 June 2015 ** 5,25% 700,0 Market capitalization: ~ 3.0 bn (MDAX rank 26) Free-floatmarketcap.: ~ 1.2 bn (MDAX rank 42) Cum. share-turnover (12 months): 3.8 bn (rank 6) -trading volume/day: ~1.6 mn units Südzucker Group, page 72

73 Financing maturity profile (asof May 31, 2014) April 2014 (in Q1 2014/15 redeemed) June 2015 June Nov April 2017/19/ % Südzucker promissory note, 45 mn 5.25% Hybrid Bond 2005/perpetual, 700 mn Issuer call June 30 June 2015 at the earliest. Pursuant to 6 (5) and (6) of bond documentation the exercise of the call right is subject to having issued, within the twelve month precedingthe redemption becoming effective, replacement capital (parity and/or junior securities and/or shares) against issue proceeds at least equal to the amounts payable upon redemption. Syndicated loan AGRANA, 300 mn, Margin 90 bp, short-term borrowing facility 1-6 months Syndicated loan, 600 mn, Margin 50 bp at Baa2/BBB, short-term borrowing facility 1 month < 1 year Agrana promissory note, 110 mn March 2018 Perpetual 4.125% Bond 2011/2018, 400 mn Commercial Paper-Program, perpetual, 600 mn Drawn lines: 322 mn Südzucker Group, page 73

74 Liquidity profile end of period* (mn ) Q1 2014/15 Q4 2013/14 Q3 2013/14 Q2 2013/14 Q1 2013/14 Net financial debt Cash & Cash equivalents / securities Gross financial debt Long-term financial debt Short-term financial debt Bank credit lines undrawn Syndicated loan undrawn Syndicated loan Agrana undrawn Commercial paper program undrawn Bank credit lines (undrawn) Cash & cash equivalents / securities Syndicated loan (undrawn) Commercial paper (undrawn) = Total liquidity reserves * IFRS 11 adjusted Südzucker Group, page 74

75 Group balance sheet (mn ) Assets Liabilities * * 1,924 (21.8 %) Other current assets 1,897 (21.9 %) 2,292 (26.0 %) Current liabilities 2,384 (27.5 %) 2,568 (29.2 %) Inventories 2,360 (27.2 %) 1,783 (20.3 %) Non-current liabilities 1,618 (18.7 %) 4,314 (49.0 %) Non-current assets 4,408 (50.9 %) 4,731 (53.7 %) Equity 4,663 (53.8 %) Total 8,806 8,665 Total 8,806 8,665 * IFRS 11 adjusted Südzucker Group, page 75

76 Group balance sheet (mn ) Intangible assets ,7% ,5% Fixed assets ,7% ,9% Shares in companies consolidated at equity 285 3,3% 190 2,2% Other investments and loans 24 0,3% 30 0,3% Securities 105 1,2% 106 1,2% Receivables and other assets 28 0,3% 44 0,5% Deferred tax assets 123 1,4% 122 1,4% Non-current assets ,9% ,0% Inventories ,2% ,2% Trade receivables and other assets ,9% ,8% Current tax receivables 64 0,7% 91 1,0% Securities 41 0,5% 42 0,5% Cash and cash equivalents 502 5,8% 484 5,5% Current assets ,1% ,0% * (mn ) * Equity attributable to shareholders of SZ AG ,1% ,1% Hybrid capital 684 7,9% 684 7,8% Other minority interest 674 7,8% 783 8,9% Shareholder's equity ,4% ,7% Provisions for pensions and similar obligations 658 7,6% 688 7,8% Other provisions 82 0,9% 87 1,0% Non-current financial liabilities 681 7,9% 808 9,2% Other liabilities 18 0,2% 16 0,2% Tax liabilities 75 0,9% 94 1,1% Deferred tax liabilities 104 1,2% 89 1,0% Non-current liabilities ,7% ,2% Other provisions 190 2,2% 189 2,1% Current financial liabilities 502 5,8% 287 3,3% Trade payables and other liabilities ,6% ,6% Current tax liabilities 83 1,0% 87 1,0% Current liabilities ,5% ,0% Total assets ,0% ,0% Total liabilities and shareholders' equity ,0% ,0% * IFRS 11 adjusted Südzucker Group, page 76

77 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 30 CropEnergies page 38 Fruit page43 4. Financial Highlights Q1 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 68 Additional information page 78 Südzucker Group, page 77

78 Revenue by region 2013/14* Rest of world (16 %) Germany (26 %) 7,735 mn EU 13 (14 %) EU 15 (44 %) * IFRS 11 adjusted Südzucker Group, page 78

79 Segment Sugar: Campaign SMY 2013/14 Beet growers 42,100 (42,600) Beet acreage: 396,000 (422,000) ha Sugar factories(incl. refineries): 32 (32) Beet processing: 27.2 (28.7) mn tons Sugar production: 4.7 (4.9) mn tons thereoffrombeets: 4.3 (4.5) mntons thereof raw sugar raffination: 0.5 (0.4) mn tons Südzucker Group, page 79

80 Südzucker well positioned in Beet Belt Germany Poland Belgium Czech Republic Slovakia Moldova France Austria Hungary Romania Südzucker Group, page 80

81 Price developmentforrawandwhitesugar (NYMEX, LIFFE, EU) Quotation for sugar in / ton Quotation for sugar in / ton Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 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 81

82 EU: Production and consumption of bioethanol Production 2013e: 6.6 million m 3 (+0%) Fuel: 4.6 million m 3 (+0.9%) Production increase e. g. in Germany, Poland, Spain, the UK and Hungary 2014e: 6.8 million m 3 (+3.3%) Consumption 2013e: 7.9 million m 3 (-3.0%) Fuel: 5.5 million m 3 (-4.3%) EU-wide decrease of fuel ethanol with the exception of the UK (+5.8%) E10 continues to be only available in Germany, Finland and France 2014e: 7.8 million m 3 (-1.6%) (in million m 3 ) Production of bioethanol Alcohol for traditional applications Bioethanol for fuel application (in 1,000 m 3 ) 2,000 1,500 1,000,500,0 Production and consumption of fuel ethanol e 2014e Source: F.O.Licht Production Consumption Production Consumption Production Consumption Production Consumption Production Consumption Production Consumption Production Consumption GER FRA GBR ESP SWE POL Others Source: F.O.Licht Südzucker Group, page 82

83 Bioethanol sales in Germany in 2013 Consumption of fuel ethanol in Germany declines by 3.4% to 1.5 million m 3 Approx. 86% or 1.3 million m 3 bioethanol are directly blended to petrol Blending quota in petrol sector: 4.2% January to April 2014: Increase of consumption by 0.5% to 470,000 m 3 Slight increase of E10 sales Increase by 5.4% to 2.8 million tonnes despite declining petrol sales January to April 2014 further increase by 5.4% to 917,000 tonnes (in 1,000 m 3 ) (in 1,000 t) Bioethanol consumption in Germany E10 sales in Germany and France Germany France 6% 4.4% 4.5% 5% 4.1% 4.0% 4.2% 4.1% 3.9% 3.5% 4% 3% 2% 1% 0% EtOH in ETBE Direct blending EtOH in E85 blending rate Source: BAFA 0 Source: BAFA, SNPAA Südzucker Group, page 83

84 Price development wheat and maize (Euronext, LIFFE) Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Feb-10 Feb-11 Feb-12 Feb-13 / ton / ton Feb Wheat price (Future contract switching upon expiry) Price for maize (Future contract switching upon expiry) Südzucker Group, page 84