AGRANA Beteiligungs-AG · VIE:AGR
AGRANA Beteiligungs-AG — H1 2020|21 Earnings Presentation
33 slides from AGRANA Beteiligungs-AG's earnings presentation, Oct 8, 2020
Slide 1: Results for the first half of 2020|21
ZU FRUCK I TE R STTAÄRC KEH FSR UUGCAHT R Der The natürliche natural upgrade Mehrwert AGRANA Beteiligungs-AG Results for the first half of 2020|21 Presentation for investors and analysts Vienna, 8 October 2020
Slide 2: H1 2020|21 Overview
H1 2020|21 OVERVIEW ▪ Revenue: € 1,309.3 m (prior year: € 1,250.0 m) ▪ EBIT: € 55.8 m (prior year: € 51.7 m) ▪ EBIT margin: 4.3% (prior year: 4.1%) Wo ▪ COVID-19 pandemic continued to be a World market leader in the production of defining issue for AGRANA in the financial FRUIT second quarter PREPAR
Slide 3: Revenue by Segment
H1 2020|21 VS PRIOR YEAR REVENUE BY SEGMENT €m 1,309.3 H1 2020|21 1,250.0 22.9% +1.0% 601.8 46.0% 595.6 Fruit 31.1% Starch -0.1% 407.2 Sugar 407.8 H1 2019|20 19.7% GROUP 246.6 300.3 H1 2019|20 H1 2020|21 47.7% 32.6% AGRANA Results for H1 2020|21, 8 October 2020 3
Slide 4: EBIT by Segment
H1 2020|21 VS PRIOR YEAR EBIT BY SEGMENT €m GROUP EBIT margin Fruit Starch Sugar EBIT margin H1 2019|20 H1 2020|21 36.1 30.1 5.0% 6.1% 34.3 +1.2% 34.7 8.5% 8.4% (7.6%) (9.0) (18.7) (3.0%) H1 2019|20 H1 2020|21 4.1% 51.7 55.8 4.3% AGRANA Results for H1 2020|21, 8 October 2020 4
Slide 5: Investment Overview
MOST IMPORTANT PROJECTS IN THE GROUP INVESTMENT OVERVIEW €m H1 2020|21 68.1 FRUIT • Wastewater treatment in Jacona, Mexico • Expansion of warehouse for finished product in Chung-Buk, 22.3 South Korea • Additional production line in Lysander, USA • Additional production line in Central Mangrove, Aust
Slide 6: Manufacture of Crystalline Betaine
BIGGEST PROJECT IN FY 2020|21 MANUFACTURE OF CRYSTALLINE BETAINE ▪ New betaine plant was successfully commissioned in August 2020 and the market launch of the crystalline product has begun ▪ JV between AGRANA and The Amalgamated Sugar Company (Boise, Idaho|USA) ▪ Investment: approx. € 40 million (AG
Slide 7: Investment Plan
OUTLOOK FOR 2020|21 INVESTMENT PLAN ▪ Total investment across the three business segments in the 2020|21 financial year, at approximately € 73 million ▪ Significantly below both the 2019|20 capital expenditure (€ ~150 m) and this year’s budgeted depreciation € 120 m Investment split 2020|21 ▪ Implem
Slide 8: Fruit
#HELLO TOMORROW Ready for the future.
Slide 9: Fruit Segment: Market Environment in H1 2020|21
MARKET ENVIRONMENT IN H1 2020|21 FRUIT SEGMENT Fruit preparations ▪ Main target market, fruit yoghurt, is being slightly negatively influenced by the COVID-19 pandemic ▪ Current forecasts by Euromonitor show global growth rate for yoghurt of 1.8% in the calendar year 2020 (0.5 percentage points belo
Slide 10: Fruit Segment: Financial Results for H1 2020|21
FINANCIAL RESULTS FOR H1 2020|21 FRUIT SEGMENT REVENUE REVENUE somewhat above year-earlier level €m ▪ In the fruit preparations business, revenue 595.6 +1.0% 601.8 remained stable despite slightly lower sales volumes ▪ In the fruit juice concentrate activities, revenue was up from a year ago; higher
Slide 11: Starch
#HHELLO STARCH TOMORROW Ready for the future.
Slide 12: Starch Segment: Market Environment in H1 2020|21
MARKET ENVIRONMENT IN H1 2020|21 STARCH SEGMENT ▪ Effects of the lockdown and the associated global changes in consumer behaviour were evident in almost all Starch sales markets ▪ Significant demand declines in the food sector, especially in the starch saccharification business ▪ In technical starch
Slide 13: Ethanol and Petrol Prices
1 JANUARY 2017 – 5 OCTOBER 2020 (EUR) ETHANOL AND PETROL PRICES 2020|21 FY 900 Average daily ethanol price in EUR/m³ (Ethanol T2 FOB Rdam EUR/cm Platts) Average daily petrol price in EUR/m³ (PREM UNL-10ppm/FOB RDAM BARG Platts) 800 700 600 500 400 300 200 5 October 2020: Ethanol: 770.5 EUR/m3 100 Pe
Slide 14: Starch Segment: Financial Results for H1 2020|21
FINANCIAL RESULTS FOR H1 2020|21 STARCH SEGMENT REVENUE REVENUE in line with the year-earlier level €m ▪ With full operation of the new, second wheat starch plant, 407.8 -0.1% 407.2 sales volumes and revenues of the products manufactured in-house rose significantly yoy ▪ Decline in revenues from mer
Slide 15: Sugar
#HELLO TOMORROW Ready for the future.
Slide 16: Sugar Segment: Market Environment in H1 2020|21
MARKET ENVIRONMENT IN H1 2020|21 SUGAR SEGMENT ▪ World sugar market ▪ Shaken confidence amid the COVID-19 pandemic, and historic drop in oil prices -> world market sugar quotations moved in parallel with oil prices and remained at low absolute levels during the reporting period ▪ Brazil has increase
Slide 17: Sugar Quotation: Raw Sugar & White Sugar
RAW SUGAR & WHITE SUGAR SUGAR QUOTATION 2020|21 FY 1 January 2006 – 6/7 October 2020 (USD) White sugar (LIFFE) 6 Oct. 2020: 378.9 USD/t = 322.2 EUR/t Raw sugar (ICE) 7 Oct. 2020: 304.7 USD/t = 258.7 EUR/t 1/1/2010 10-years-low: 10-years-low: White sugar, 15/7/2019: 294.0 USD/t Raw sugar, 27/4/2020:
Slide 18: Sugar Price Reporting: Monthly EU Average Prices
SUGAR PRICE REPORTING MONTHLY EU AVERAGE PRICES (OCTOBER 2011 TO OCTOBER 2020; € PER TONNE) 2020|21 FY Source: European Commission (as of 28 September 2020) and SugarOnline (as of 6 October 2020) AGRANA Results for H1 2020|21, 8 October 2020 18
Slide 19: Sugar Segment: Financial Results for H1 2020|21
FINANCIAL RESULTS FOR H1 2020|21 SUGAR SEGMENT REVENUE REVENUE up to € 300.3 million €m ▪ This was significantly up from one year earlier ▪ Both higher sugar selling prices and increased sugar 300.3 246.6 sales volumes led to this growth, especially with resellers (retail) H1 2019|20 H1 2020|21 EBIT
Slide 20: Consolidated Financial Statements (Condensed)
H1 2020|21 CONSOLIDATED FINANCIAL STATEMENTS (CONDENSED) 20
Slide 21: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT €m (condensed) H1 H1 Q2 Q2 2020|21 2019|20 2020|21 2019|20 Revenue 1,309.3 1,250.0 656.7 611.6 EBITDA1 101.1 90.8 46.4 39.3 Operating profit before except. items and results of equity-accounted JV 47.4 44.0 19.3 16.5 Share of results of equity-accounted JV 8.9 7.7 5.0 4
Slide 22: Analysis of Net Financial Items
ANALYSIS OF NET FINANCIAL ITEMS H1 H1 €m 2020|21 2019|20 Change Net interest expense (4.0) (3.5) -14.3% Currency translation differences (3.4) (3.3) -3.0% Other financial items (1.7) (1.1) -54.5% Total (9.1) (7.9) -15.2% AGRANA Results for H1 2020|21, 8 October 2020 22
Slide 23: Tax Rate
TAX RATE H1 H1 €m Change 2020|21 2019|20 Profit before tax 46.7 43.8 +6.6% Income tax expense (12.3) (14.9) +17.4% Tax rate 26.3% 34.0% -7.7pp AGRANA Results for H1 2020|21, 8 October 2020 23
Slide 24: Consolidated Cash Flow Statement
CONSOLIDATED CASH FLOW STATEMENT €m (condensed) H1 2020|21 H1 2019|20 Change Operating cash flow before changes in working capital 112.8 81.8 +37.9% Changes in working capital (28.1) (9.3) > -100% Total of interest paid/received and tax paid, net (13.2) (12.8) -3.1% Net cash from operating activitie
Slide 25: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET €m (condensed) 31 Aug. 2020 29 Feb. 2020 Change Non-current assets 1,289.5 1,331.9 -3.2% Current assets 1,121.1 1,217.5 -7.9% Total assets 2,410.6 2,549.4 -5.4% Equity 1,329.9 1,387.1 -4.1% Non-current liabilities 561.4 565.3 -0.7% Current liabilities 519.3 597.0 -13.0% To
Slide 26: News and Outlook 2020|21
2020|21 NEWS AND OUTLOOK 26
Slide 27: Closure Factory Leopoldsdorf, Austria
SUGAR SEGMENT CLOSURE FACTORY LEOPOLDSDORF|AUSTRIA ▪ Current sugar beet growing area necessitates streamlining sugar production in Austria ▪ On 25 August 2020, the Supervisory Board of AGRANA Beteiligungs-AG approved the closure of the sugar factory at Leopoldsdorf, Austria, site in December 2020 af
Slide 28: Outlook 2020|21: AGRANA Group
OUTLOOK 2020|21 AGRANA GROUP ▪ Based on adjusted internal planning that best reflects the potential economic and financial impact of the COVID-19 pandemic ▪ AGRANA expects Group EBIT for the full 2020|21 financial year to at least match the prior-year level ▪ Group revenue is projected to show sligh
Slide 29: Outlook 2020|21: Fruit Segment
OUTLOOK 2020|21 FRUIT SEGMENT 2019|20 2020|21 FORECAST €m ACTUAL including COVID-19 effects Revenue 1,185.4 Slight increase > +1% to +5% EBIT 55.9 Steady ➔ 0% to +1% ▪ Fruit preparations business ▪ Projecting stable revenue, which despite negative COVID-19 effects is to be achieved through full ut
Slide 30: Outlook 2020|21: Starch Segment
OUTLOOK 2020|21 STARCH SEGMENT 2019|20 2020|21 FORECAST €m ACTUAL including COVID-19 effects Revenue 807.0 Slight increase > +1% to +5% EBIT 75.2 Moderate reduction > -1% to -5% ▪ Sales prices for native starches and wheat gluten are expected to be reduced as a result of increased supply in the
Slide 31: Outlook 2020|21: Sugar Segment
OUTLOOK 2020|21 SUGAR SEGMENT 2019|20 2020|21 FORECAST €m ACTUAL including COVID-19 effects Revenue 488.3 Significant increase > +10% to +50% EBIT (44.0) Significant improvement > +10% to +50% ▪ AGRANA expects a continual improvement in conditions in the EU sugar market ▪ On the distribution s
Slide 32: Financial Calendar
2020|21 FINANCIAL CALENDAR 14 January 2021 Results for first three quarters of 2020|21 11 May 2021 Results for full year 2020|21 (annual results press conference) 19 June 2021 Record date for Annual General Meeting participation 29 June 2021 Annual General Meeting in respect of 2020|21 2 July 2021 E
Slide 33: Disclaimer
DISCLAIMER This presentation is being provided to you solely for your information and may not be reproduced or further distributed to any other person or published, in whole or in part, for any purpose. This presentation comprises the written materials/slides for a presentation concerning AGRANA Bet
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