Investor Roadshow USA/Canada, March 2015

Transcription

1 Investor Roadshow USA/Canada, March 2015 Nikolai Baltruschat (Head of Investor Relations) Südzucker Group, page 1

2 Disclaimer This presentation contains forward looking statements. The statements are based on current assumptions and estimates made by the executive board and information currently available to its members. The forward looking statements are not to be viewed as guarantees of the future developments and results presented therein. Future developments and results are in fact dependent on a variety of factors and are subject to various risks and imponderables. They are based on assumptions that could in fact prove to be invalid. The risk management report in the 2013/14 annual report on pages 99 to 110 presents an overview of the risks. We assume no obligation to update the forward-looking statements made in this presentation. This presentation includes percentage and number rounding. Typing and printing errors reserved. 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 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 67 Additional information page 77 Südzucker Group, page 3

4 Südzucker Group at a glance Global operating German food group with long-standing corporate history: Südzucker Group, page :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 exchangelisting in Germany MDAX-member Trading volume: ~ 1.9 mn shares/day 1 IFRS 11 adjusted Market Cap and Shareholder Structure* Zucker Invest GmbH (10%) Südzucker indirect via Z&S (43%) Agrana ~1.1 bn Z&S*** (86%) Free float (34%) Südzucker ~2.7 bn SZVG** (56%) Südzucker direct (~7%) Free float (7%) SZVG* (7%) Südzucker (69%) Crop Energies ~250 mn Free float (24%) * March 2015 ** Süddeutsche Zuckerrübenverwertungs-Genossenschaft eg *** Z&S Zucker und Stärke Holding AG (~50% Südzucker, ~50% ZBG (Zucker- Beteiligungsgesellschaft m.b.h.))

5 Group Key Figures (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; since 2013/14 income from companies consolidated at equity included in EBIT ** 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; 2013/14 RoCE(incl. Goodwill) unadjusted: Group 11.0%, sugar 13.6%, special products 8.7%, CropEnergies 6,3%, fruit 8.1% Südzucker Group, page 6

7 Return on Capital Employed(RoCE 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 Südzucker Group, page 7 * IFRS 11 adjusted; 2013/14 unadjusted: Group 11.0%, sugar 13.6%, special products 8.7%, CropEnergies 6,3%, fruit 8.1%

8 LeadingMarket Positions and clearstrategic Objectives Segment/Division Market Position Strategy / Main Drivers Sugar BENEO Freiberger Starch PortionPack CropEnergies Fruit Preparations Fruit Juice Concentrates Südzucker Group, page 8 #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

9 Portfolio benefits from long-term megatrends 8,000 6,000 mn sugarconsumption worldwide t 218, , ,000 USD 12,000 8,000 per capita income worldwide 4,000 2,000 population growth worldwide 98,000 58,000 18,000 4,000,0 emerging markets Sources: United Nations, F.O. Licht Source: ERS InternationalMacroeconomic DataSet mn barrel / day oil consumption USD / barrel crude oil price,200 0 mn t 1,000,800,600,400 global animal feed production Source: BP, EIA 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 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 67 Additional information page 77 Südzucker Group, page 10

11 Rating Rating agency Long-term rating Short-term term rating BBB * Negative Outlook ** A 2 Baa2 *** Negative Outlook **** P 2 * since 20 June 2014 ** since16 January 2015 *** since17 June 2014 **** since 23 January 2015 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 reserv es * * IFRS 11 adjusted Südzucker Group, page 12

13 Financing maturity profile* (mn mn ) asof 30 November EUR-Bond 45 ** Promissory Note Südzucker Syndicated loan 2013/ mn (back-up facility) Agrana Syndicated loan2014/ mn Commercial Paper Programm 600 mn (perpetual) Hybrid Bond 700 mn (perpetual) 5.25 % beforejune 2015 / sincejune M-Euribor bpmargin * Displayedto2019; Agrana promissorynote: 14 mn tranchedue in 2021, 7 mn tranchedue in 2022 ** in Q1 2014/15 redeemed Südzucker Group, page 13

14 Hybrid bond2005 / cash flow covenant (mn ) 2005/ / / / / / / / /14* 2014/15e 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 markettenderat anytime ( 6 (7)) First time call possibility June 2015 ( 6 (5) & (6)); condition: Comparable instrument replacement within 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 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 67 Additional information page 77 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; since 2013/14 income from companies consolidated at equity included in EBIT Südzucker Group, page 16

17 EU sugar market* -supply and demand until 2017 World Market EU Production EU Demand World Market Quota sugar ~ mnt CAGR 2-3% ~13 mnt 3-4 mnt Demand** mnt o/w SZ: Mauritius ~0.4 mnt Rawsugarimportsfor raffinationthroughsz ~0.3 mnt Production** mnt o/w SZ 3.2 mnt o/w SZ ~25% upto to0.4 mnt max. ~1.4 mnt ~3-4 mnt ~2-3 mnt Non-quota sugar *Simplified, excl. isoglucose **F.O. Licht estimate for 2014/15, February 2015 Südzucker Group, page 17

18 EU Sugar Market: Mid term Outlook (I) EU sugar policy until 30 September 2017 Sugar and isoglucose quota Quota sugar: Minimum beet price Contractual obligation 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 Elimination of sugar and isoglucose quota No minimum beet price Contractual obligation between industry and farmer Temporary options: Private storage 1 October 2017 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 18

19 EU Sugar Market: Mid term Outlook (II) EU sugar demand currently served by EU sugar demand asof October 1, 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 19

20 EU Sugar Market: Mid term Outlook (III) Opportunities Südzuckerwell positioned 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, 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 even stronger influence on EU market Südzucker Group, page 20

21 Segment Sugar: Europe European market leader(24%) Pan-European sales and logistic strategy Sustainable production in highest beet-yield areas in Europe Cost savings throughout entire value chain Great Britain Poland Germany Belgium 7 Czech Republic Slovakia Austria France Hungary Moldova Romania Keeping and strengthening competitiveness Exploiting growth opportunities outside Europe Portugal Spain Italy Bosnia- Hercegovina Bulgaria Greece Exports fromeu Acquisitions Distribution activities Beet sugar factories Sugar refineries Südzucker Group, page 21

22 Participationin in ED&F Man offersa global footprint Long standing successful history(founded 1783) Truely global footprint(~3,400 employees in 60 countries) Beneficiaryoflong-term growthin global sugar demand Approx. 9 mnt global sugartradingvolume; second largestsugartraderwithsignificantpresencein Central and South America, Far East, South East Asia and Africa Sugar only Liquid Products only Coffee only Multiple businesses Participationsin sugarproductionandrefiningcapacitiesamongstothersin Russia, the Ukraine, Mexico, Chile and Venezuela Well positioned in further complementary key product categories Marketing of coffee and molasses Trading in biofuels, edible oils as well as shipping and financial services Südzucker Group, page 22

23 Market environment(i): World market World Sugar Balance (mn t) Sugar world market price( /t) White sugar / / / /15e 38.6% * 42.2% * 44.1% * 42.1% * Production Consumption Ending stock*endingstock in % of consumption World sugar market well supplied 250 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Low sugarworldmarketprice Südzucker Group, page 23

24 Market environment(ii (II): EU Further influence of low world market price via imports Further reduction of EU quota sugar inventories expected Ongoing tough competition for contracts. Decreasing shares of annual contracts, higher share of short term contracts and purchase from spot markets EU quota sugar inventory(mn t) Sept.'07 Sept.'08 Sept.'09 Sept.'10 Sept.'11 Sept.'12 Sept.'13 Sept.'14e Stabilisation of EU sugar price since beginningof sugarmarketingyear2014/15 on lowlevel Extremly difficult market environment Full effectin FY 2015/16 Südzucker Group, page Price reporting EU-KOM ( /t) Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14

25 Segment Sugar: Outlook 2014/15 Revenues Increase in quota sugar sales volume Decrease in quota and non-quota sales revenues Significant revenue decrease(previous year*: 3,901 mn ) Operating Profit 2015/16 Drop mainly caused by significant decline in quota sugar sales revenues. In the first half of the fiscal year, the drop was already noticeable in Southern and Eastern Europe. Since the third quarter also in Western and Central European markets. Significant decrease to about mn (Previous year*: 436 mn ) Further difficultyearin light of sugarmarketingyear2014/15 contracts and sluggish inventory improvement; operating loss highly likely * 2013/14 adjusted for IFRS 11 effects Südzucker Group, page 25

26 Segment Sugar: Mid term Outlook Global demand trend of ~ 2% p.a. growth intact (population growth, increase in per-capita income ) Recovery of world market price Temporary EU market distortion in transition period Strong market position in combination with strong foothold in best growing area in the centreof demand Necessary efficiency improvements Increase in production ~120days (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 ~ 10 to 40 mn 2014/15 mid term Südzucker Group, page 26

27 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 67 Additional information page 77 Südzucker Group, page 27

28 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; since 2013/14 income from companies consolidated at equity included in EBIT Südzucker Group, page 28

29 Segment Special Products Revenues(mn ) 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 nonfood articles 1,427 Starch* 40% 1,396 1,575 Revenue split 2013/14* PortionPack 8% 1,740 mn 1,806 1,862 1, / / / / / /14 * Freiberger 29% BENEO (Functional Food) 23% * IFRS 11 adjusted ** incorporates AGRANA bioethanol and starch activities Südzucker Group, page 29

30 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 per-capita 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 leadershipwithisomalt. Successfulpositioningof product innovations Palatinose and galeniq BENEO-Remy (rice starches): e.g. rice starches, rice flours, rice bran, rice concentrates, Sales Offices Regional Centers Production facility Exploitationof of growthpotential of our core products Development of new marketsvia innovations Offstein Südzucker Group, page 30

31 Segment Special Products: Division Starch* Well establishedplayerasmanufacturerofspecialtystarchesforthepaper, 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 bioethanol plant in Pischelsdorf(June 2013). Investment of 70 mn. Capacity for 107,000 t wheatstarch, 23,500 t wheatgluten, 55,000 t wheatbranand70,000 t of material substitutes( B+C starch ) for bioethanol. New modular concept with new Südzucker starch factory planned at the site of bioethanol plant in Zeitz. Comissioningplanned end of FY 2015/16. Investment of 125 mn. Capacity for up to 140,000 t wheat starch products. Zeitz (DE, new plant) Gmünd (A) Aschach(A) Pischelsdorf(A) Production starch Szabadegyhaza(HU) Tandarei(RO) Production bioethanol * incorporates AGRANA bioethanol and starch activities Pischelsdorf Südzucker Group, page 31

32 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 32

33 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 Beijerland(NL) Krakow Herentals(B) Landgraaf(NL) Nuremberg Prague Barcelona Südzucker Group, page 33 facility Prague

34 Segment Special Products: Outlook 2014/15 Revenues Divisions Freiberger, Beneo and PortionPack overall performance tobestable Division starch with slight decrease Stable revenue development (Previous year*: 1,740 mn ) Operating Profit Significant increase in operating profit supported by all divisions Significant increase in operating profit above 100 mn (Previous year*: 85 mn ) * 2013/14 adjusted for IFRS 11 effects Südzucker Group, page 34

35 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 67 Additional information page 77 Südzucker Group, page 35

36 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; since 2013/14 income from companies consolidated at equity included in EBIT Südzucker Group, page 36

37 Segment CropEnergies: Development Market development: Grainpricesat ~ 200 /t despitegood harvest expectations USA: Grainstockstoincreaseby~ 7 % EU: Grainstockstoincreaseby~ 40 % Russian export duties and weak Euro/USD exchangerate supporteu price level EU ethanolpricestill lowat ~ 450 /m 3 Acquisition Ensus, England: Increase 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. Quotation: Ethanol /m Nov-12 Mar-13 Jul-13 Nov-13 Mar-14 Jul-14 Nov-14 Mar-15 Wilton Rotterdam Duisburg Houston Loon-Plage Wanze Zeitz Santiago de Chile São Paulo Production facility Tank storage Trading Südzucker Group, page 37

38 EU biofuels market and policy EU: Draft directive to amend the Renewable Energies Directive and the Fuel Quality Directive Common Position of the European Council was formally adopted on 9 December 2014 Transmission to European Parliament in January 2015 effectively initiates 2 nd reading Legislative procedure expected to be finalized with vote in spring of 2015 (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) Südzucker Group, page 38

39 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 increaseof 5-10 % to above 750 mn (Previous year*: 720 mn ) Operating Profit Ongoing high volatility in bioethanol and raw material pricing High price sensitivity; 10 price change per cubicmeter bioethanol unfolds about 10 mn earnings impact Operating profit isexpected in a range of -20 to0 mn (Previous year*: 35 mn ) EBITDA in range of +20 to+40 mn (Previous year*: 69 mn ) Restructuring One-off costsof upto40 mn due totemporarypause of production at Ensus * 2013/14 adjusted for IFRS 11 effects Südzucker Group, page 39

40 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 67 Additional information page 77 Südzucker Group, page 40

41 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; since 2013/14 income from companies consolidated at equity included in EBIT Südzucker Group, page 41

42 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 J&F Holding GmbH AGRANA FruitS.A.S. AUSTRIA JUICE GmbH Fruit preparations Fruit juice concentrates ~75% of segment revenues ~25% of segment revenues ⅓of worldmarket European market leader 26 facilities worldwide 14 facilities worldwide Südzucker Group, page 42

43 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 43

44 Segment Fruit: Outlook 2014/15 Revenues Operating Profit Significantly lower revenues driven by lower prices in division fruit juice concentrates not to be compensated by division fruit preparations Revenues slightly below prior year s level (Previous year: 1,172 mn ) Stable earnings 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 44

45 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 67 Additional information page 77 Südzucker Group, page 45

46 Group income statement 3 rd quarter 1 st -3 rd quarter (mn ) 2014/ /14 +/- in % 2014/ /14 +/- in % Revenues , ,9 EBITDA , ,9 EBITDA margin 7,1% 13,9% 7,1% 13,2% Depreciation , ,2 Operating profit , ,9 Operating margin 1,6% 8,9% 3,3% 9,9% Restructuring costs/special items , Income from companies consolidated at equity ,8 Income from operations , ,4 Net earnings for the period attributable to Südzucker shareholders ,3 Earnings per share ( ) (undiluted) -0,04 0,55-0,33 1,76-81,3 Cash flow , ,1 Investments in fixed assets* , ,2 Net financial debt (as of reporting date) > 100 Average number of employees ,4 * Including intangible assets Südzucker Group, page 46

47 Financial Highlights 9M 2014/15 Group revenuesdeclineby11 % to5,233 (5,871) million Operating profitdecreased70 % to174 (579) million Cash flowdeclined45 % to385 (700) million Earningsper sharedecreasedto0.33 (1.76) Net financialdebtincreasedby204 million to267 (63) million Net financialdebtas% of equityincreasedto6 (1)% Equity ratiostill on high levelat 53 (54) % Südzucker Group, page 47

48 Segment Sugar: Development 9M 2014/15 3 rd quarter 1 st -3 rd quarter (mn ) 2014/ /14 +/- in % 2014/ /14 +/- in % Revenues , ,4 EBITDA , ,1 EBITDA margin 4,1% 17,2% 5,2% 16,4% Depreciation , ,1 Operating profit ,6 Operating margin -2,9% 11,4% 1,7% 13,5% Revenues: Operating profit: Revenues decreased mainly driven by the decline in quota sugar sales revenues. Quota sugar volumes increased. Export prices for non-quota sugar below last year s level. Dropmainly caused by significant decline in quota sugar sales revenues. In the first half of the fiscal year, the drop was already noticeable in Southern and Eastern Europe. Since the third quarter also in Western and Central European markets. Campaign2014/15: Beet yieldat 83 t/ha, 20 % abovefiveyearaverage. Average campaign length expected to reach 124 (102) days. Südzucker Group, page 48

49 Segment Special Products: Development 9M 2014/15 3 rd quarter 1 st -3 rd quarter (mn ) 2014/ /14 +/- in % 2014/ /14 +/- in % Revenues , ,9 EBITDA , ,8 EBITDA margin 12,4% 10,3% 10,5% 8,7% Depreciation , ,9 Operating profit , ,6 Operating margin 8,3% 6,2% 6,3% 4,7% Revenues: Slightly down after nine months mainly due to lower sales revenues. Stabilization in Q3. Operating profit: Decrease in sales revenues more than compensated through decrease in costs. Investments to support future development: Biomassboilerat thesitein Pemuco, Chile, toimproveenergyuse Construction of wheat starch factory at the site in Zeitz, Germany Südzucker Group, page 49

50 Segment CropEnergies: Development 9M 2014/15 3 rd quarter 1 st -3 rd quarter (mn ) 2014/ /14 +/- in % 2014/ /14 +/- in % Revenues , ,4 EBITDA , ,5 EBITDA margin 3,6% 10,8% 3,6% 11,8% Depreciation , ,2 Operating profit Operating margin -0,8% 6,2% -1,1% 7,2% Revenues: Increasedespite significantly lower ethanol sales revenues thanks to considerably higher bioethanol and food/feed volumes, which were largely attributable to Ensus. Operating profit: Lowernet raw material costs and higher volumes were not enough to fully offset the sharp drop in ethanol sales revenues. Südzucker Group, page 50

51 Segment Fruit: Development 9M 2014/15 3 rd quarter 1 st -3 rd quarter (mn ) 2014/ /14 +/- in % 2014/ /14 +/- in % Revenues , ,0 EBITDA , ,1 EBITDA margin 10,6% 9,8% 10,3% 9,7% Depreciation , ,3 Operating profit , ,5 Operating margin 6,2% 5,5% 6,7% 6,5% Revenues: Decreasemainly due to lower sales revenues and volumes of apple juice concentrates. Also pressure from lower sales revenues in division fruit preparations. Operating profit: Lowersales revenues and sales volumes had a negative impact, but falling raw material costs and cost-cutting measures partly offset the decline. Operating profit in the third quarter was higher than last year, which reduced the year-over-year decline. Südzucker Group, page 51

52 Income statement (I) 3 rd quarter 1 st -3 rd quarter (mn ) 2014/ /14 +/- in % 2014/ /14 +/- in % Rev enues , ,9 Operating profit , ,9 Restructuring costs/special items , Income from companies consolidated at equity ,8 Income from operationsons , ,4 Financial result , ,2 Earnings before income taxes , ,5 Restructuring costs/special items: Contains income in segment sugar from closed cases in Italy and Belgium as well as costs in segment fruit in relation to restructuring measures and costs in segment sugar due to an early retirement program in Belgium. Income from companies consolidated at equity: Income from companies consolidated at equity were 15 (43) million. Sugar segment s result of -7 (21) million relates mainly to its share of earnings from ED&F Man, StudenGroup and a jointventure distribution company. Special products segment's result of 22 (23) million includes its earnings share from Hungrana Group's starch business. Financial result: Südzucker Group, page 52 Financial result improved to -31 (-42) million. Average debt higher than the year prior and net interest expense of -29 (-31) million. Other financing result was -2 (-11) million. The year prior this item included currency exchange losses attributable to the financing of subsidiaries in Eastern Europe, as well as South and Central America.

53 Income statement(ii) 3 rd quarter 1 st -3 rd quarter (mn ) 2014/ /14 +/- in % 2014/ /14 +/- in % Earnings before income taxes , ,5 Taxes on income , ,5 Net earnings for the year , ,8 of which attributable to Südzucker AG shareholders ,3 of which attributable to hybrid capital 7 7 0, ,0 of which attributable to minority interests , ,7 Earnings per share ( ) -0,04 0,55-0,33 1,76-81,3 Taxeson income: Tax rate was 22 % (21) % Minority interests: The co-owners of AGRANA and CropEnergies account for most of the other minority interests share of net earnings Earningsper share(eps): Decreasedto0.33 (1.76 ) Südzucker Group, page 53

54 Cash flow statement 3 rd quarter 1 st -3 rd quarter (mn ) 2014/ /14 +/- in % 2014/ /14 +/- in % Cash flow , ,1 Increase (-)/ Decrease (+) in working capital , ,2 Investments in fixed assets Sugar segment , ,5 Special products segment , ,5 CropEnergies segment , ,1 Fruit segment , ,9 Total investments in fixed assetssets , ,2 Investments in financial assets/acquisitions ac itions 1 1 0, ,0 Total investments , ,2 Increases in stakes held in subsidiaries Capital increase/dec reas e ,0 Dividends paid , ,8 Cash flow: Cash flow mainly tracked EBIT and came in at 7.4 (11.9) % of revenues. Working Capital: Cash flow from working capital resulted mainly from a reduction in inventories until the beginning of the new campaign; the build up in sugar stocks to 30 November is juxtaposed by a concurrent increase in liabilities toward beet farmers. Investments: Sugar: Mainly replacement spending and investments to improve energy efficiency. Special products: Primarily due to the construction of starch factory in Zeitzand biomass boiler at the BENEO site, Chile. CropEnergies: Optimization of production systems. Fruit: Mainly in the fruit preparations area. Südzucker Group, page 54

55 Balance sheet (mn ) /- in % Assets Non-current assets ,4 Current assets ,1 Total assetss ,6 Liabilities and s hareholders' equity Shareholders' equity ,6 Non-current liabilities ,0 Current liabilities ,0 Total liabilities and s hareholders' equity ,6 Net financial debt > 100 Equity ratio 53% 54% Net financial debt in percent of equity (gearing) 6% 1% Current assets: Decline of 614 million. Main reason is the price and volume-driven reduction in inventories, especially in segments sugar and fruit. In addition, trade receivables were lower due to lower prices. Net financial debt: Net financial debt rose 204 million to 267 (63) million. The ratio of net financial debt to equity was 6 (1) %. Südzucker Group, page 55

56 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 67 Additional information page 77 Südzucker Group, page 56

57 Bridge IFRS (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 pro-rata consolidation since Südzucker Group, page 57

58 Bridge IFRS (II) Segment data figures adjusted accounting changes due to IFRS 11 figures presented mn 2013/ /14 Group Sugar Special P. CropEn. Fruit Revenues Operating profit Revenues Operating profit Revenues Operating profit Revenues Operating profit Revenues Operating profit Südzucker Group, page 58

59 Outlook 2014/15 (I) Revenues 2013/14* 2014/15e Operating Profit 2013/14* 2014/15e Sugar 3.9 bn 438 mn ~10 to 40 mn Special Products 1.7 bn 85 mn >100 Mio. CropEnergies 720 mn >750 mn 35 mn -20 to 0 mn Fruit 1.2 bn 65 mn Group bn ~ 7.0bn bn 622 mn ~ 200mn mn Südzucker Group, page 59 * IFRS 11 adjusted

60 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 % Südzucker Group, page 60 * IFRS 11 adjusted ** Purchase Agrana bioethanol minorities

61 Outlook 2014/15 (III) 2013/14* 2014/15e 212/13e Net Financial Debt Cash flow 536 mn 697 mn ~ mn >450 mn Cash flow/ Revenues 9.3 % >6.5 % Equity ratio 53.8 % ~ 53 % Südzucker Group, page 61 * IFRS 11 adjusted

62 Summary (I): 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 Due to sugar segment development, group operating profit target of 200 million remains ambitious Peak in capex level secures future development New starch and food-grade alcohol plant to enlarge Zeitz site Biomassboiler, Chile Launch of fourth fruit preparations plant to enforce market presence in USA Ongoing very solid balance sheet figures Comfortable liquidity position Südzucker Group, page 62

63 Summary (II): Midterm Outlook Financial Year 2015/16: Sugar segment: Ongoingstronglyburdenedbydifficultmarketenvironment; high likelihood for operating loss CropEnergies segment: Especiallyfirsthalfyearpressuredbydifficultmarketenvironment; operatinglosscan not beruledout Special products and fruit segments: Further earnings increase Midterm outlook Group operatingprofit: ~ 550 mn thereofsugar~ 250 mn Group-EBITDA: ~ 850 mn Investments on depreciation level Südzucker Group, page 63

64 Mid term Outlook (I) Group Operating Profit Fruit Special Products Crop Energies Commissioning USA Volume growth parallel to market growth Ensus: Exploitation 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 64

65 Mid termoutlook (II) Group EBITDA and Capex ~ mn ~ 850 mn Room for manoeuvre Growth ~ 500 mn Main- tenance Main- tenance ~250 mn EBITDA Capex EBITDA Capex 2014/15 mid term Südzucker Group, page 65

66 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 67 Additional information page 77 Südzucker Group, page 66

67 Long-term development(i) Pre-Reform Transition Period Post-Transition Period Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Outlook (mn ) 2004/ / / / / / / / / /14* 2014/15e 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; since 2013/14 income from companies consolidated at equity included in EBIT ** Extraordinary impact from Goodwill impairment loss. *** Capex(excluding investments in financial assets). Südzucker Group, page 67

68 Long-term development(ii) Cash flow (mn ) Revenues (bn ) * > * ~7.0 Net Financial Debt (mn ) 1,508 1,632 1,177 1, ~ * Operating Profit (mn ) * ~200 NFD/CF 2.2x 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 68

69 Return on Capital Employed(RoCE RoCE) 2009/ / / / /14* 2014/15 e 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 Südzucker Group, page 69 * IFRS 11 adjusted; 2013/14 unadjusted: Group 11.0%, sugar 13.6%, special products 8.7%, CropEnergies 6,3%, fruit 8.1%

70 Breakdown of Capital Employed(2013/14)* Breakdown by assets Breakdown by segments 21% 14% 9% 46% 5,874 mn 5,874 mn 54% 33% 23% Goodwill Working Capital Fixed assets Sugar CropEnergies Special Products Fruit * IFRS 11 adjusted Südzucker Group, page 70

71 Südzucker withstrong capital market presence Südzucker Bonds Südzucker Share 36% Financial liabilities* 7% 56% mn shares 10% 57% 34% Liabilities to banks Others Bonds SZVG Zucker Invest GmbH Free Float (mn ) Due date Coupon Nominal value Key figures asof 30 November 2014 Bond 2011/ ,125% 400,0 Hybrid bond 2005/15 ** 5,25% 700,0 * asof February28, 2014 incl. hybrid bond ** firstissuercallrightbysüdzucker asof 30 June 2015 Market capitalization: ~ 2.55 bn (MDAX rank40) Free-floatmarketcap.: ~ 0.97 bn (MDAX rank 44) Cum. share-turnover(12 months):3.49 bn (rank 6) -trading volume/day(12 months): ~1.9 mn shares Südzucker Group, page 71

72 Financing maturity profile (as of 30 November 2014) April 2014 (in Q1 2014/15 redeemed) April 2017/19/21/22 March 2018 June Nov Perpetual Perpetual 5.90% Südzucker promissory note, 45 mn Agrana promissory note, 126 mn 4.125% Bond 2011/2018, 400 mn Syndicated loan AGRANA, 300 mn, Margin 90 bp, short-term borrowing facility 1-6 months Syndicated loan, 600 mn, Margin 50 bpat Baa2/BBB, short-term borrowingfacility1 month< 1 year 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. Commercial Paper-Program, perpetual, 600 mn Drawnlines: 105 mn Südzucker Group, page 72

73 Liquidity profileend end of period* (mn ) Q3 2014/15 Q2 2014/15 Q1 2014/15 Q4 2013/14 Q3 2013/14 Net financial debt Cash & Cash equivalents / securities Gross financial debt Long-term financial debt Short-term financial debt Bank credit lines undrawn Syndic ated loan undrawn Syndic ated loan Agrana undrawn Commercial paper program undrawn Bank c redit lines (undrawn) Cash & cash equivalents / securities Syndicated loan (undrawn) Commercial paper (undrawn) = Total liquidity reserves * IFRS 11 adjusted Südzucker Group, page 73

74 Group balance sheet (mn 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 74

75 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 75

76 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 16 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2014/15 page Outlook 2014/15 page Appendix Long-term development and key figures page 67 Additional information page 77 Südzucker Group, page 76

77 Revenue by region 2013/14* Rest of world (16 %) Germany (26 %) 7,533 mn EU 13 (14 %) EU 15 (44 %) * IFRS 11 adjusted Südzucker Group, page 77

78 Segment Sugar: Campaign SMY 2014/15 (preliminary preliminary) Beet growers 41,300 (42,100) Beet acreage: 405,000 (396,000) ha Sugar factories(incl. refineries): 32 (32) Beet processing: 33.6 (27.2) mn tons Sugar production: 5.0 (4.7) mn tons Südzucker Group, page 78

79 EU quota sugar production- sugar marketing year* 2013/14 Market share** EU quota sugar production Südzucker quota shareper country(in %) Südzucker Group (24 %) Nordzucker (15 %) Great Britain Poland Tereos (11 %) Belgium 72 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 Bulgaria Greece * Sugar marketingyear: Oct. Sep. ** Südzucker estimates Südzucker Group, page 79 Südzucker distribution entities Non-EU production

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