Suedzucker AG · XETR:SZU
Suedzucker — Südzucker — dbAccess German, Swiss & Austrian Conference 2016
86 slides from Suedzucker's conference presentation, Jun 8, 2016
Slide 1: dbAccess German, Swiss & Austrian Conference
dbAccess German, Swiss & Austrian Conference Berlin, 8 June 2016 Nikolai Baltruschat (Head of Investor Relations) Südzucker Group, page 1
Slide 2: Disclaimer
FINANCIAL TRANSPARENCY 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
Slide 3: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 10 3. Development of Segments Sugar page 24 Special Products page 38 CropEnergies page 47 Fruit page 53 4. Outlook 2016/17 page 58 5. Appendix Long-term development and key figures page 68 Additional informat
Slide 4: Südzucker Group at a glance
FINANCIAL TRANSPARENCY Südzucker Group at a glance Global operating German food group with long-standing Market Cap and Shareholder Structure* corporate history: 1837: Foundation of first sugar Zucker Free float company Invest GmbH (34%) (10%) 1926:Foundation of Südzucker Süddeutsche Zucker-AG ~3.6
Slide 5: Key figures 2015/16
FINANCIAL TRANSPARENCY Key figures 2015/16 (mn €) Sugar Special Prod. CropEnergies Fruit Group Revenues 2.855 1.791 658 1.083 6.387 EBITDA 48 246 122 102 518 EBITDA-Margin 1,7% 13,7% 18,5% 9,4% 8,1% Depreciation -127 -75 -35 -40 -277 Operating profit -79 171 87 62 241 Operating Margin -2,7% 9,5% 13,
Slide 6: Leading Market Positions and clear Strategic Objectives
FINANCIAL TRANSPARENCY Leading Market Positions and clear Strategic Objectives Segment/Division Market Position Strategy / Main Drivers Further enhancement of leading market Sugar #1 in Europe position in Europe; especially in deficit markets Expedite internationalization; partnership with ED&F Man
Slide 7: Portfolio benefits from long-term megatrends
FINANCIAL TRANSPARENCY Portfolio benefits from long- long-term megatrends mn USD t 12,000 8,000 218,000 per capita income sugar consumption worldwide 178,000 8,000 worldwide 6,000 138,000 98,000 4,000 4,000 population growth worldwide 58,000 emerging markets 2,000 18,000 ,0 Source: ERS International
Slide 8: Return on Capital Employed (RoCE)
FINANCIAL TRANSPARENCY Return on Capital Employed (RoCE)* RoCE)* 5,950 5,873 5,877 5,840 Capital 5,791 Employed 5,707 (mn €) Group RoCE (%) 13,2 % 13.2 16,3 % 16.3 10,6 % 10.6 3,1 % 3.1 4,1 % 4.2 9,5 % 9.5 2011/12 2012/ 13 2013/14 2014/15 2015/ 16 Ø 5 y ears Sugar 17.1% 22.4% 13.7% 0.2% -2.6% ~10.2%
Slide 9: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 10 3. Development of Segments Sugar page 24 Special Products page 38 CropEnergies page 47 Fruit page 53 4. Outlook 2016/17 page 58 5. Appendix Long-term development and key figures page 68 Additional informat
Slide 10: Key figures (I)
FINANCIAL TRANSPARENCY Key figures (I) 2014/15 2015/16 Revenues 6.8 mn € 6.4 mn € Operating 181 mn € 241 mn € Result Net profit 74 mn € 181 mn € Earnings per 0.10 € 0.53 € share** share** Dividend per 0.25 € 0.30 €* share* share* * Proposal ** excl. non-recurring negative items: 0.63 € in 2014/15 an
Slide 11: Key figures (II)
FINANCIAL TRANSPARENCY Key figures (II) 2014/15 2015/16 Cash flow 389 mn € 480 mn € Capex 386 mn € 371 mn € Net Financial 593 mn € 555 mn € Debt Liquidity ~2.4 bn € ~2.5 bn € Equity ratio 52.6 % 55.0 % Südzucker Group, page 11
Slide 12: Segmental development
FINANCIAL TRANSPARENCY Segmental development Segment sugar (mn €) 2015/16 2014/15 ∆ significant decline in Gr o up Revenues 6.387 6.778 -391 -5,8% quota sugar sales revenues Operating Result 241 181 60 33,0% EU framework limits Revenues 2.855 3.228 -373 -11,6% flexibility until 2017 Sug ar Operating
Slide 13: Income from operations
FINANCIAL TRANSPARENCY Income from operations (mn €) 2015/16 2014/15 ∆ Revenues 6.387 6.778 -391 Operating result 241 181 60 Restructuring costs/special items -19 -44 25 Income from companies consolidated at equity 55 22 33 Income from operations (EBIT) 277 159 118 Result from restructuring and spec
Slide 14: Net earnings
FINANCIAL TRANSPARENCY Net earnings (mn €) 2015/16 2014/15 ∆ Income from operations (EBIT) 277 159 118 Financial result -50 -32 -18 Earnings before income taxes taxe s 227 127 100 Taxes on income -46 -53 7 Net earnings 181 74 107 Financial result: Net interest result improved from -34 to -27 mn € Re
Slide 15: Earnings per share
FINANCIAL TRANSPARENCY Earnings per share (mn €) 2015/16 2014/15 ∆ Consolidated net earnings 181 74 107 thereof Südzucker AG shareholders 109 20 89 thereof hybrid capital 18 26 -8 of which attributable to other non-controlling interests 54 28 26 Earnings per share (€) 0,53 0,10 0,43 Other minority i
Slide 16: Investments and depreciations
FINANCIAL TRANSPARENCY Investments and depreciations (mn €) 2015/16 2014/15 ∆ 2015/16 Fixed Assets 371 386 -15 Depreciation 277 Sugar 181 186 -5 Sugar 127 Special Products 131 125 6 Special Products 75 CropEnergies 17 32 -15 CropEnergies 35 Fruit 42 43 -1 Fruit 40 Financial Assets 0 1 -1 Total inves
Slide 17: Net financial debt reduction
FINANCIAL TRANSPARENCY Net financial debt reduction (mn €) 27 Dividends Others 129 29 Capex 480 Partial 593 Hybrid 555 capital 371 buyback Working Capital Cash flow 114 NFD NFD 28.02.2015 29.02.2016 1.5x Net Financial Debt/Cash flow 1.2x 13.3% Net Financial Debt/Equity 12.4% Südzucker Group, page 17
Slide 18: Targets 2015/16 again achieved or exceeded
FINANCIAL TRANSPARENCY Targets 2015/16 again achieved or exceeded Outlook 2015/16 Reported 2015/16 Revenues 6.3-6.5 bn € 6.4 bn € Operating 200-240 mn € 241 mn € Result Capex ~ 400 mn € 371 mn € Net Financial deutliche ~ 650 – 750 mn € 555 mn € Debt Ergebniserholung Südzucker Group, page 18
Slide 19: Rating
FINANCIAL TRANSPARENCY Rating Rating agency Long- Long-term rating Short- Short-term rating BBB- BBB- * A–3* Stable Outlook * Baa 2 ** P–2 Stable Outlook *** * since 15 June 2015 ** since 17 June 2014 *** since 20 May 2016 Südzucker Group, page 19
Slide 20: Liquidity profile end of period
FINANCIAL TRANSPARENCY Liquidity profile end of period (mn €) Q4 2015/16 Q3 2015/16 Q2 2015/16 Q1 2015/16 Q4 2014/15 N et f inanci al debt - 555 - 417 - 539 - 829 - 593 Cas h & Cas h equival ents / s ec urities 604 605 611 624 681 Gros s f inanc ial debt - 1.158 - 1.021 - 1.150 - 1.452 - 1.274 Long-
Slide 21: Favourable financing maturity profile
FINANCIAL TRANSPARENCY Favourable financing maturity profile* profile* (mn €) as of 29 February 2016 EUR-Bond 400 Promissory 12 12 14 Note 2016 2017 2018 2019 2020 2021 Syndicated loan 1,050 mn € Commercial Paper Programm 600 mn € (perpetual) Hybrid Bond 700 mn € (perpetual) 5.25 % p.a. before June
Slide 22: Hybrid bond: 2015/16 cash flow covenant safely achieved
FINANCIAL TRANSPARENCY Hybrid bond: bond: 2015/16 cash flow covenant* covenant* safely achieved (mn €) 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17e Re ve nue s 5.765 5.780 5.871 5.718 6.161 6.992 7.879 7.533 6.778 6.387 6.4-6.6 Cash flow 554 498 504 553 60
Slide 23: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 10 3. Development of Segments Sugar page 24 Special Products page 38 CropEnergies page 47 Fruit page 53 4. Outlook 2016/17 page 58 5. Appendix Long-term development and key figures page 68 Additional informat
Slide 24: Segment Sugar
FINANCIAL TRANSPARENCY Segment Sugar (mn €) 2015/16 2014/15 ∆ Revenues 2.855 3.228 -373 -11,6% EBITDA 48 133 -85 63,0% EBITDA-Margin 1,7% 4,1% Operating Result -79 7 -86 Operating Margin -2,7% 0,2% Restructuring and special items 4 -7 11 Income from companies consolidated at equity 32 -5 37 Income f
Slide 25: Segment Sugar: Development 2015/16
FINANCIAL TRANSPARENCY Segment Sugar: Development 2015/16 Revenues (mn €) Operating Result (mn €) 3,228 2,855 7 - 79 2014/15 2015/16 2014/15 2015/16 Further decrease in quota sugar sales revenues Decrease in non-quota sales revenues Further decrease in quota sugar sales revenues Decrease in export v
Slide 26: Segment Sugar: World market environment 2015/16
FINANCIAL TRANSPARENCY Segment Sugar: World market environment 2015/16* World Sugar Balance (mn t) Sugar world market price (USD/t) 184,2 181,4 181,6 178,3 181,1 183,4 177,6 172,3 175,9 172,8 600 550 500 White sugar 77,9 80,0 73,2 70,4 64,4 450 400 350 300 2012/13 2013/14 2014/15 2015/16e 2016/17e J
Slide 27: Segment Sugar: Development 2015/16
FINANCIAL TRANSPARENCY Segment Sugar: Development 2015/16* EU-COM quota sugar inventory (mn t) Price reporting EU-COM (€/t) 750 700 650 2.5 600 2.2 2.0 550 1.6 1.6 1.3 500 1.0 1.1 0.7 450 400 Sept.'08 Sept.'09 Sept.'10 Sept.'11 Sept.'12 Sept.'13 Sept.'14 Sept.'15 Sept.'16e Apr-13 Jul-13 Oct-13 Jan-1
Slide 28: EU sugar market - supply and demand until 2017
FINANCIAL TRANSPARENCY EU sugar market* market* - supply and demand until 2017 World Market EU Production EU Demand World Market „Quota sugar“ sugar“ ~16- ~16-17 mn t ~13 mn t 3-4 mn t CAGR 2- 2-3% o/w SZ: Raw sugar imports for raffination through SZ ~0.3 mn t Demand** Production** 183.4 mn t 177.6
Slide 29: Segment Sugar: Europe
FINANCIAL TRANSPARENCY Segment Sugar: Europe European market leader (24%) Great Britain Pan-European sales and logistic strategy Poland Germany Sustainable production in highest Belgium 7 beet-yield areas in Europe Czech Republic Slovakia Moldova Cost savings throughout entire Austria value chain Hu
Slide 30: EU quota sugar production - sugar marketing year 2015/16
FINANCIAL TRANSPARENCY EU quota sugar production - sugar marketing year* year* 2015/16 Market share** share** EU quota sugar production Südzucker quota share per country (in %) Great Britain Südzucker Group Nordzucker (24 %) (15 %) Poland Germany 25 Tereos Belgium 72 25 (11 %) Czech Slovakia 40 Repu
Slide 31: Participation in ED&F Man offers a global footprint
FINANCIAL TRANSPARENCY Participation in ED&F Man offers a global footprint Long standing successful history (founded 1783) Truely global footprint (~3,400 employees in 60 countries) Beneficiary of long-term growth in global sugar demand Approx. 9 mn t global sugar trading volume; one of the largest
Slide 32: Segment Sugar: Outlook 2016/17
FINANCIAL TRANSPARENCY Segment Sugar: Outlook 2016/17 Annual average sales revenues increase compensates for Revenues missing revenues contribution from closed refinery in Marseille and end of cooperation with Mauritius Stable revenues (prev. year: 2,855 mn €) Operating Expected sales revenues incre
Slide 33: EU Sugar Market: Mid term Outlook (I)
FINANCIAL TRANSPARENCY EU Sugar Market: Mid term Outlook (I) EU sugar policy New market framework until 30 September 2017 1 October 2017 Sugar and isoglucose quota Elimination of sugar and isoglucose quota Quota sugar: Minimum beet price No minimum beet price Contractual obligation between industry
Slide 34: EU Sugar Market: Mid term Outlook (II)
FINANCIAL TRANSPARENCY EU Sugar Market: Mid term Outlook (II) EU sugar demand currently EU sugar demand as of October 1, 2017 served by served by EU beet sugar 70 % EU EU EU sugar b eet sugar demand sug ar demand 19 mn t 10 % 19 mn t Imports 16 % EU isoglucose 4% Quota Non-Quota Max. Export Volume (
Slide 35: EU Sugar Market: Mid term Outlook (III)
FINANCIAL TRANSPARENCY EU Sugar Market: Mid term Outlook (III) (III) Opportunities Challenges Südzucker well positioned as largest Stronger competition, also from Isoglucose producer with focus on best growing Further EU free trade agreements with third regions party countries Only limited effort ne
Slide 36: Segment Sugar: Mid term Outlook 2019/20e
FINANCIAL TRANSPARENCY Segment Sugar: Mid term Outlook 2019/20e Global demand trend of ~ 2% p.a. growth intact (population growth, increase in per-capita income…) Operating Result Perspective Midterm recovery of world market price Temporary EU market distortion in transition period ~ 250 mn € Stop o
Slide 37: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 10 3. Development of Segments Sugar page 24 Special Products page 38 CropEnergies page 47 Fruit page 53 4. Outlook 2016/17 page 58 5. Appendix Long-term development and key figures page 68 Additional informat
Slide 38: Segment Special Products
FINANCIAL TRANSPARENCY Segment Special Products (mn €) 2015/16 2014/15 ∆ Revenues 1.791 1.724 67 3,9% EBITDA 246 192 54 27,5% EBITDA-Margin 13,7% 11,2% Operating Result 171 120 51 41,9% Operating Margin 9,5% 7,0% Restructuring and special items -2 -3 1 Income from companies consolidated at equity 23
Slide 39: Segment Special Products: Development 2015/16 (II)
FINANCIAL TRANSPARENCY Segment Special Products: Development 2015/16 (II) Revenues (mn €) Operating Result (mn €) 171 120 1,791 1,724 2014/15 2015/16 2014/15 2015/16 Increase in sales volumes in all Increase in sales volumes divisions Lower raw material costs Overall higher sales revenues Increase i
Slide 40: Segment Special Products: Overview
FINANCIAL TRANSPARENCY Segment Special Products: Overview Segment special products shows very solid Revenues (mn €)** fundamental development and record result* 1,862 1,806 1,791 1,74 0 1,724 Growth based on intact mega trends: 1,575 Unchanged trend to alternative and functional food ingredients Fur
Slide 41: Segment Special Products: Division BENEO
FINANCIAL TRANSPARENCY 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)
Slide 42: Segment Special Products: Division Starch
FINANCIAL TRANSPARENCY Segment Special Products: Division Starch* Starch* Well established player as manufacturer of specialty starches for the paper, textile, cosmetics, pharmaceutical and construction industries Principal focus on organic and GM-free starches for the food industry Agrana starch fa
Slide 43: Segment Special Products: Division Freiberger
FINANCIAL TRANSPARENCY 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
Slide 44: Segment Special Products: Division PortionPack Europe
FINANCIAL TRANSPARENCY 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, c
Slide 45: Segment Special Products: Outlook 2016/17
FINANCIAL TRANSPARENCY Segment Special Products: Outlook 2016/17 Divisions Freiberger, Beneo, starch and PortionPack overall Revenues performance with slight increase Slight revenue increase (prev. year: 1,791 mn €) Operating High charges related to commissioning of new starch plant in Result Zeitz
Slide 46: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 10 3. Development of Segments Sugar page 24 Special Products page 38 CropEnergies page 47 Fruit page 53 4. Outlook 2016/17 page 58 5. Appendix Long-term development and key figures page 68 Additional informat
Slide 47: Segment CropEnergies
FINANCIAL TRANSPARENCY Segment CropEnergies (mn €) 2015/16 2014/15 ∆ Revenues 658 764 -106 -13,8% EBITDA 122 25 97 >100% EBITDA-Margin 18,5% 3,3% Operating Result 87 -11 98 Operating Margin 13,2% -1,5% Restructuring and special items -18 -28 10 Income from companies consolidated at equity 0 0 0 Inco
Slide 48: Segment CropEnergies: Development 2015/16 (III)
FINANCIAL TRANSPARENCY Segment CropEnergies: CropEnergies: Development 2015/16 (III) Revenues (mn €) Operating Result (mn €) 87 764 658 2014/15 2015/16 -11 2014/15 2015/16 Lower ethanol, food and animal Significant increase in sales revenues feed sales due to temporary Decrease net raw material cost
Slide 49: Segment CropEnergies: Market environment 2015/16
FINANCIAL TRANSPARENCY Segment CropEnergies: CropEnergies: Market environment 2015/16 Market- and price development bioethanol Quotation: Wheat €/t / Ethanol €/m3 High volatility 700 350 Significant increase in 2015 from all-time low at 417 NYMEX Fuel EtOH T2 FOB Rdm. 600 300 €/m3 on 14 Jan. 2015 ab
Slide 50: EU: agreement on framework for 2020 (iLUC directive)
FINANCIAL TRANSPARENCY EU: EU: agreement on framework for 2020 (“iLUC (“iLUC directive”) Amendment published on 15 Sept 2015 EU: market size and market potential (in 1,000 toe*) Share of renewable energies in transport of 10% in 2020 (unchanged) 30,000 Share of conventional biofuels: up to 7% 27,000
Slide 51: Segment CropEnergies: Outlook 2016/17
FINANCIAL TRANSPARENCY Segment CropEnergies: CropEnergies: Outlook 2016/17 as at 25 April 2016: Revenues Umsatz Revenues expected at 550 to 625 mn € (prev. year: 658 mn €) Operating Operating result expected at 30 to 70 mn € Result (prev. year: 87 mn €) Restructuring Temporary special charges during
Slide 52: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 10 3. Development of Segments Sugar page 24 Special Products page 38 CropEnergies page 47 Fruit page 53 4. Outlook 2016/17 page 58 5. Appendix Long-term development and key figures page 68 Additional informat
Slide 53: Segment Fruit
FINANCIAL TRANSPARENCY Segment Fruit (mn €) 2015/16 2014/15 ∆ Revenues 1.083 1.062 21 2,0% EBITDA 102 103 -1 -1,8% EBITDA-Margin 9,4% 9,8% Operating Result 62 65 -3 -5,2% Operating Margin 5,7% 6,1% Restructuring and special items -3 -6 3 Income from companies consolidated at equity 0 0 0 Income from
Slide 54: Segment Fruit: Development 2015/16
FINANCIAL TRANSPARENCY Segment Fruit: Fruit: Development 2015/16 Revenues (mn €) Operating Result (mn €) 65 62 1,062 1,083 2014/15 2015/16 2014/15 2015/16 Fruit preparations Fruit preparations Increase in sales volumes Increase in sales volumes Higher sales revenues Sales revenues increase more than
Slide 55: Segment Fruit – with leading positions in both divisions
FINANCIAL TRANSPARENCY 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: Largest manufacturing fruit juice concentrates in Europe (market leader in appl
Slide 56: Segment Fruit: Outlook 2016/17
FINANCIAL TRANSPARENCY Segment Fruit: Fruit: Outlook 2016/17 Division fruit preparations with higher revenues via increase in Revenues sales volume Division fruit juice concentrates with revenues increase via sales volume and sales revenues increase Significant increase in revenues (prev. year: 1,08
Slide 57: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 10 3. Development of Segments Sugar page 24 Special Products page 38 CropEnergies page 47 Fruit page 53 4. Outlook 2016/17 page 58 5. Appendix Long-term development and key figures page 68 Additional informat
Slide 58: Cost savings and other measures
FINANCIAL TRANSPARENCY Cost savings and other measures* measures* Capex (mn €) Cost savings (mn €) ~120 ~100 ~35 ~30 ~70 ~40 ~25 386 371 300 - 350 <300 ~85 ~10 ~70 ~45 ~30 2014/15 2015/16 2016/17e 2017/18e 2014/15 2015/16 2016/17e 2017/18e Segment sugar Other segments * Current status of the continu
Slide 59: Outlook 2016/17 (I)
FINANCIAL TRANSPARENCY Outlook 2016/17 (I) Revenues Operating Result 2015/16 2016/17e 2015/16 2016/17e Sugar 2.9 bn € -79 mn € positive Special 1.8 bn € 171 mn € Products CropEnergies 658 mn € 550 - 625 mn € 87 mn € 30 - 70 mn € Fruit 1.1 bn € 62 mn € > prev. year Group 6.4 bn € 6.4- 6.4-6.6 bn € 24
Slide 60: Outlook 2016/17 (II): Other key figures
FINANCIAL TRANSPARENCY Outlook 2016/17 (II) (II) : Other key figures 2015/16 2016/17e EBITDA 518 mn € 530 - 630 mn € Capex 371 mn € 300 - 350 mn € Net Financial 555 mn € 450 - 550 mn € Debt RoCE 4.2 % > prev. year Cash flow 480 mn € > prev. year Cash flow / 7.5 % > prev. year Revenues Equity ratio 5
Slide 61: Outlook 2016/17 (III): Further improvement of financial key figures
FINANCIAL TRANSPARENCY Outlook 2016/17 (III)*: (III)*: Further improvement of financial key figures 1,632 Net Financial Debt Cash Flow 1,065 996 mn € 854 791 823 697 606 593 > 553 555 504 464 536 480 450 year. prev. prev - 389 550 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/
Slide 62: Summary (I): Financial Year 2015/16
FINANCIAL TRANSPARENCY Summary (I): Financial Year 2015/16 Despite temporary burden – especially due to the difficult environment in the sugar market and extremely volatile environment in the ethanol market – April 2015 targets have been signficantly exceeded Reduction in net financial debt despite
Slide 63: Summary (II): Financial Year 2016/17e
FINANCIAL TRANSPARENCY Summary (II): Financial Year 2016/17e EU framework reduces latitude until 2017, e.g. volume limit, minimum Sugar beet price, export restrictions… Improvement of market environment in 2016/17 Positive earnings for 2016/17 expected Special Decrease in earnings level, but still h
Slide 64: Midterm Outlook (I): Group Operating Result
FINANCIAL TRANSPARENCY Midterm Outlook (I): (I): Group Operating Result Fruit Volume growth parallel Crop to market growth Energies Cost savings ~ 550 mn € Market growth Special Further potential via Ensus Products Commissioning Zeitz 250- 250-350 Sugar Market growth mn € Cost savings Stop of market
Slide 65: Midterm outlook (II): Increase in excess cash
FINANCIAL TRANSPARENCY Midterm outlook (II): Increase in excess cash Capex (mn €) EBITDA (mn (mn €) ~850 Room for manoeuvre ~ 550 530 - 630 518 453 386 371 300 - Main- Main- 350 <300 tenance <300 2014/15 2015/16 2016/17e 2019/20e 2014/15 2015/16 2016/17e 2019/20e 2019/20e ~ 300 Capex (mn €) End of i
Slide 66: Executive Summary
FINANCIAL TRANSPARENCY Executive Summary Diversified business model supports group in ongoing volatile environment Turnaround in segment sugar Solid development in segments special products, CropEnergies and fruit Largely completed capacity build-up as well as capacity reserves are basis for further
Slide 67: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 10 3. Development of Segments Sugar page 24 Special Products page 38 CropEnergies page 47 Fruit page 53 4. Outlook 2016/17 page 58 5. Appendix Long-term development and key figures page 68 Additional informat
Slide 68: Long-term development (I): Group
FINANCIAL TRANSPARENCY Long- Long-term development (I)*: Group (mn €) 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17e Revenues 5.765 5.780 5.871 5.718 6.161 6.992 7.879 7.533 6.778 6.387 6.4 - 6.6 EBITDA 682 489 489 645 775 1.015 1.246 889 453 518 530-630 EBI
Slide 69: Long-term development (II): Segments
FINANCIAL TRANSPARENCY Long- Long-term development (II)*: Segments Segment Sugar Segment Special Products (mn €) 2011/12 2012/13 2013/14 2014/15 2015/16 (mn €) 2011/12 2012/13 2013/14 2014/15 2015/16 Revenues 3.728 4.232 3.901 3.228 2.855 Revenues 1.806 1.862 1.740 1.724 1.791 EBITDA 626 830 558 133
Slide 70: Long-term development (III)
FINANCIAL TRANSPARENCY Long- Long-term development (III)* Cash flow (mn € ) Revenues (bn € ) 996 7.9 7.5 6.4 823 697 7.0 6.8 - 6.2 6.4 6.6 > 5.8 5.9 5.7 606 prev. 554 498 553 480 year 504 389 Net Financial Debt (mn € ) Operating Result (mn € ) 1,632 972 1,508 751 622 1,065 854 521 791 250 450 403 -
Slide 71: Return on Capital Employed (RoCE)
FINANCIAL TRANSPARENCY Return on Capital Employed (RoCE) RoCE) 2015/16 2014/15 (mn €) RoCE RoCE Op. Result Cap. Employed Südzucker Group 4,2% 3,1% 241 5.791 Sugar -2,6% 0,2% -79 3.041 Special Products 11,9% 8,7% 171 1.436 CropEnergies 17,7% -2,2% 87 490 Fruit* 7,5% 8,4% 62 823 * Adjustment segment f
Slide 72: Return on Capital Employed (RoCE)
FINANCIAL TRANSPARENCY Return on Capital Employed (RoCE)* RoCE)* 5,950 5,873 5,877 Capital 5,791 > Employed 5,707 prev. year (mn €) Group RoCE (%) 13.2 % 16.3 % 10.6 % 3.1 % 4.2 % >pr ev. year 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17e Sugar 17.1% 22.4% 13.7% 0.2% -2.6% > prev. year Special Pr
Slide 73: Breakdown of Capital Employed (2015/16)
FINANCIAL TRANSPARENCY Breakdown of Capital Employed (2015/16) Breakdown by assets Breakdown by segments 14% 22% 8% 49% 5,791 mn € 5,791 mn € 53% 29% 25% Sugar Special Products Goodwill Working Capital Fixed assets CropEnergies Fruit Südzucker Group, page 73
Slide 74: Unchanged comfortable liquidity position
FINANCIAL TRANSPARENCY Unchanged comfortable liquidity position* position* (mn €) 28.02.2013 28.02.2014 28.02.2015 29.02.2016 without IFRS 11 with IFRS 11 with IFRS 11 with IFRS 11 N et f inanci al debt - 444 - 536 - 593 - 555 Cash & Cas h equiv alents / s ecuriti es 613 648 681 604 Gros s fi nancia
Slide 75: Financing maturity profile
FINANCIAL TRANSPARENCY Financing maturity profile (as of 29 February 2016) April Agrana promissory note, 126 mn € 2017/19/21/22 March 2018 4.125% Bond 2011/2018, 400 mn € 2018/20 Syndicated loan, 1.050 mn € Hybrid Bond 2005/perpetual, 700 mn € Issuer call right since 30 June 2015 at the earliest. Pu
Slide 76: Südzucker with strong capital market presence
FINANCIAL TRANSPARENCY Südzucker with strong capital market presence Bonds Share Zucker Invest Free float GmbH (10%) (34%) 33% 7% Süd- Südzucker zucker indirect via SZVG* (56%) Südzucker Financial Z&S (43%) (69%) liabilities* liabilities* Südzucker direct (~7%) Crop Agrana Energies Free float 60% (7
Slide 77: Group balance sheet
FINANCIAL TRANSPARENCY Group balance sheet (mn€ mn €) Assets Liabilities 28.02.2015 29.02.2016 28.02.2015 29.02.2016 1,837 Other current 1,702 2,128 1,850 (20.9 %) Current liabilities (21.7 % ) assets (25.1 %) (22.7 %) 2,128 1,897 1,811 Inventories 1,885 Non-current (25.1 % ) (23.3 %) (22.3 %) (22.3
Slide 78: Group balance sheet
FINANCIAL TRANSPARENCY Group balance sheet (mn €) 29.02.2016 28.02.2015 (mn €) 29.02.2016 28.02.2015 Intangible assets 1.189 14,6% 1.187 14,0% Equity attributable to shareholders of SZ AG 3.158 38,8% 3.125 36,9% Fixed assets 2.825 34,7% 2.790 32,9% Hybrid capital 653 8,0% 684 8,1% Shares in companie
Slide 79: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 10 3. Development of Segments Sugar page 24 Special Products page 38 CropEnergies page 47 Fruit page 53 4. Outlook 2016/17 page 58 5. Appendix Long-term development and key figures page 68 Additional informat
Slide 80: Revenue by region 2015/16
FINANCIAL TRANSPARENCY Revenue by region 2015/16 Rest of world Germany (18 %) (24 %) 6,387 mn € EU 13 EU 15 (14 %) (44 %) Südzucker Group, page 80
Slide 81: Segment Sugar: Campaign SMY 2015/16 (preliminary)
FINANCIAL TRANSPARENCY Segment Sugar: Campaign SMY 2015/16 (preliminary) preliminary) Beet growers 40,300 (41,300) Beet acreage: 350,000 (405,000) ha Sugar factories (incl. refineries): 31 (32) Beet processing: 23.7 (34.0) mn tons Sugar production: 4.1 (5.3) mn tons thereof from beets: 3.8 (5.0) mn
Slide 82: Südzucker well positioned in Beet Belt
FINANCIAL TRANSPARENCY Südzucker well positioned in „Beet Belt“ Poland Germany Belgium Czech Republic Moldova Slovakia Austria France Hungary Romania Südzucker Group, page 82
Slide 83: Price development for raw and white sugar
FINANCIAL TRANSPARENCY Price development for raw and white sugar (ICE US, LIFFE) 700 700 600 600 500 500 Quotation for sugar i n € / t on Quot ation for s ugar in € / t on 400 400 300 300 200 200 100 100 Jan-14 May-14 Nov-14 Jan-15 May-15 Nov-15 Jan-16 May-16 Jul-14 Jul-15 Mar-14 Sep-14 Mar-15 Sep-1
Slide 84: Production and consumption of bioethanol
FINANCIAL TRANSPARENCY Production and consumption of bioethanol EU production Bioethanol production in the EU 10 2015: 7.1 million m3 (-1.2%) Fuel ethanol Non-fuel ethanol Fuel: 5.0 million m3 (-4.2%) 8 (in million m³) 2016: 7.2 million m3 (-0.1%) 6 Fuel: 5.1 million m3 (+1.7%) 4 EU consumption 2 20
Slide 85: Price development wheat and maize
FINANCIAL TRANSPARENCY Price development wheat and maize (Euronext, LIFFE) 300 300 280 280 260 260 240 240 220 220 € / ton € / ton 200 200 180 180 160 160 140 140 120 120 100 100 May-14 May-15 May-16 Jan-14 Jul-14 Nov-14 Jan-15 Jul-15 Nov-15 Jan-16 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Feb-11 Feb-12 Fe
Slide 86: Investor Relations
FINANCIAL TRANSPARENCY Investor Relations Financial calender Contact Nikolai Baltruschat 7 July 2016 Head of Investor Relations Q1 – 1st quarter report 2016/17 Tel.: +49 (621) 421 – 843 14 July 2016 nikolai.baltruschat@suedzucker.de Annual general meeting for fiscal 2015/16 Bernhard Juretzek 13 Octo
Südzucker — dbAccess German, Swiss & Austrian Conference 2016 on 6ix