Suedzucker Ag · XETR:SZU
Suedzucker — Südzucker Group — Non-Deal Roadshow (June 2014)
90 slides from Suedzucker's roadshow presentation, June 2014
Slide 1: Südzucker Group Investor Roadshow – June 2014
Südzucker Group Thomas Kölbl (CFO) Investor Roadshow – June 2014
Slide 2: Disclaimer
FINANCIAL TRANSPARENCY 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 fu
Slide 3: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 11 3. Development of Segments Sugar page 16 Special Products page 31 CropEnergies page 40 Fruit page 46 4. Outlook 2014/15 page 52 5. Appendix Annual Financial Statement 2013/14 page 62 Long-term development
Slide 4: Südzucker Group at a glance
FINANCIAL TRANSPARENCY Südzucker Group at a glance Global operating German food group with long-standing corporate Market Cap and Shareholder Structure* history: 1837: Foundation of first sugar Zucker Free float company Invest GmbH (38%) (10%) 1926: Foundation of Südzucker Süddeutsche Zucker-AG ~3.2
Slide 5: Group – Key Figures remain on high level
FINANCIAL TRANSPARENCY Group – Key Figures remain on high level (mn €) 2010/11 2011/12 2012/13 2013/14 Revenues 6.161 6.992 7.879 7.735 EBITDA 775 1.015 1.246 933 EBITDA-Margin 12,6% 14,5% 15,8% 12,1% Operating profit 521 751 972 658 Operating Margin 8,5% 10,7% 12,3% 8,5% Restructuring and special i
Slide 6: Key Figures 2013/14
FINANCIAL TRANSPARENCY Key Figures 2013/14 (mn €) Sugar Special Prod. CropEnergies Fruit Group Revenues 3.961 1.882 720 1.172 7.735 EBITDA 559 199 69 106 933 EBITDA-Margin 14,1% 10,6% 9,5% 9,0% 12,1% Depreciation -123 -77 -34 -41 -275 Operating profit 436 122 35 65 658 Operating Margin 11,0% 6,5% 4,
Slide 7: Segments: Return on Capital Employed (RoCE)
FINANCIAL TRANSPARENCY Return on Capital Employed (RoCE) 2009/10 2010/11 2011/12 2012/13 2013/14 ∅ 5 years Sugar 7.5% 10.4% 17.1% 22.4% 13.6% 14.2% Special Prod. 10.5% 10.8% 10.7% 9.5% 8.7% 10.0% Segments CropEnergies 2.3% 8.7% 10.2% 17.3% 6.3% 9.0% Fruit 5.5% 6.7% 4.7% 5.0% 8.1% 6.0% RoCE 7.5% 9.8%
Slide 8: 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 9: Portfolio benefits from megatrends
FINANCIAL TRANSPARENCY Portfolio benefits from megatrends mn t USD 8,000 211,000 8,000 per capita income sugar consumption worldwide 171,000 6,000 worldwide 6,000 131,000 4,000 91,000 4,000 2,000 population growth 51,000 worldwide emerging markets 2,000 11,000 ,0 Sources: United Nations, F.O. Licht
Slide 10: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 11 3. Development of Segments Sugar page 16 Special Products page 31 CropEnergies page 40 Fruit page 46 4. Outlook 2014/15 page 52 5. Appendix Annual Financial Statement 2013/14 page 62 Long-term development
Slide 11: Rating
FINANCIAL TRANSPARENCY Rating Rating agency Long-term rating Short-term rating BBB+ * A–2 Stable Outlook ** Baa 1 *** P–2 Stable Outlook **** Since April 15, 2014: * Credit watch negative ** Credit watch negative *** Review for downgrade **** Review for downgrade Südzucker Group, page 11
Slide 12: Comfortable liquidity position
FINANCIAL TRANSPARENCY Comfortable liquidity position (mn €) 28.02.2011 28.02.2012 28.02.2013 28.02.2014 Net financial debt -854 -791 -464 -561 Cash & Cash equivalents / securities 506 715 631 657 Gross financial debt -1.360 -1.506 -1.096 -1.218 Long-term financial debt -548 -931 -808 -687 Short-ter
Slide 13: Financing maturity profile
FINANCIAL TRANSPARENCY Financing maturity profile* (mn €) as of February 28, 2014 400 EUR-Bond 45 45 58 Promissory Note 2013 2014 2015 2016 2017 2018 2019 Südzucker Syndicated loan 2013/2018 600 mn € (back-up facility) Agrana Syndicated loan 2012/2015 450 mn € Commercial Paper Programm 600 mn € (per
Slide 14: Hybrid bond 2005 / cash flow covenant
FINANCIAL TRANSPARENCY Hybrid bond 2005 / cash flow covenant (mn €) 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15e Revenues (IFRS) 5.347 5.765 5.780 5.871 5.718 6.161 6.992 7.879 7.735 ~ 7.000 Cash flow (IFRS) 527 554 498 504 553 606 823 996 689 > 450 Cash flow / Re
Slide 15: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 11 3. Development of Segments Sugar page 16 Special Products page 31 CropEnergies page 40 Fruit page 46 4. Outlook 2014/15 page 52 5. Appendix Annual Financial Statement 2013/14 page 62 Long-term development
Slide 16: Segment Sugar: Key figures
FINANCIAL TRANSPARENCY Segment Sugar: Key figures (mn €) 2010/11 2011/12 2012/13 2013/14 Revenues 3.279 3.728 4.232 3.961 EBITDA 399 626 830 559 EBITDA-Margin 12,2% 16,8% 19,6% 14,1% Operating profit 285 511 708 436 Operating Margin 8,7% 13,7% 16,7% 11,0% Restructuring and special items -3 13 6 -110
Slide 17: Segment Sugar: Development 2013/14
FINANCIAL TRANSPARENCY Segment Sugar: Development 2013/14 Revenues (mn €) Operating profit (mn €) 708 4,232 3,961 436 2012/13 2013/14 2012/13 2013/14 Significant quota sugar price reduction Significant quota sugar price reduction Decrease non-quota sugar sales Increase in quota sugar production cost
Slide 18: EU sugar market - supply and demand
FINANCIAL TRANSPARENCY EU sugar market* - supply and demand World Market EU Production EU Demand World Market „Quota sugar“ ~16-17 mn t 3-4 mn t CAGR 2-3% ~13 mn t o/w SZ: Mauritius ~0.4 mn t Raw sugar imports for raffination through SZ ~0.3 mn t Demand** Production** 176 mn t 181 mn t o/w SZ 3.2 mn
Slide 19: Segment Sugar – Market environment (I): World market
FINANCIAL TRANSPARENCY Segment Sugar – Market environment (I): World market World Sugar Balance (mn t) Sugar world market price (€/t) 184.0 181.0 174.9 172.3 175.8 550 165.4 162.3 167.8 500 White sugar 450 400 72.6 76.2 64.9 58.7 350 300 250 2010/11 2011/12 2012/13 2013/14e May-12 Nov-12 May-13 Nov-
Slide 20: Segment Sugar – Market environment (II): EU
FINANCIAL TRANSPARENCY Segment Sugar – Market environment (II): EU EU quota sugar inventory (mn t) Influence of low world market price via imports High EU quota sugar inventories through EU commission measures (1.2 mn t) 3.0 Decreasing shares of annual contracts, 2.5 2.2 higher share of short term c
Slide 21: EU quota sugar production - marketing year 2013/14
FINANCIAL TRANSPARENCY EU quota sugar production - sugar marketing year* 2013/14 Market share** EU quota sugar production Südzucker quota share per country (in %) Great Britain Südzucker Nordzucker Group (15 %) (24 %) Poland Germany 25 Tereos 72 Belgium 25 (11 %) Czech Slovakia 40 Republic 39 Moldov
Slide 22: Mauritius cooperation strengthens distribution power in the EU
FINANCIAL TRANSPARENCY Mauritius cooperation strengthens distribution power in the EU Exclusive distributor of ~ 400,000 tonnes p.a. sugar contingent from Mauritius into the EU until 2015 Imported sugar volumeW Wleverages European distribution platform Wsupports core regions Wsupports market positio
Slide 23: Participation in ED&F Man offers a global footprint
FINANCIAL TRANSPARENCY Participation in ED&F Man offers a global footprint Private, employee owned company, founded 1783 ~ 3,400 employees in 60 countries Revenues: 9 bn USD Profit from ordinary activities: 299 mn USD Operations: Sugar only Sugar: Liquid Products only Coffee only Multiple businesses
Slide 24: EU sugar and agricultural policy road map
FINANCIAL TRANSPARENCY EU sugar and agriculturial policy road map 2006 2010 2013 2014 2017 2020 26 June 2013: Common Agricultural Policy (CAP) Decision about CAP and 2014 - 2020 EU sugar policy Autumn/Winter 2013: Ratification CAP and EU sugar policy by EU Parliament and EU Council Transition @ new
Slide 25: Segment Sugar: Mid term Outlook (I)
FINANCIAL TRANSPARENCY Segment Sugar: Mid term Outlook (I) EU sugar policy New market framework until 30 September 2017 1 October 2017 Extension sugar and isoglucose quota Elimination of sugar and isoglucose quota Quota sugar: Minimum beet price No minimum beet price Contractual duty between industr
Slide 26: Segment Sugar: Mid term Outlook (II)
FINANCIAL TRANSPARENCY Segment Sugar: 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 beet sugar demand sugar demand 19 mn t 10 % 19 mn t Imports 16 % EU isoglucose 4% Quota Non-Quota Max. Export Volume (WTO)
Slide 27: Segment Sugar: Implications for Südzucker
FINANCIAL TRANSPARENCY Segment Sugar: Implications for Südzucker Opportunities Challenges Südzucker is in good starting position as Stronger competition, possibly also from largest producer with focus on best growing Isoglucose regions Further EU free trade agreements with third Only limited effort
Slide 28: Segment Sugar: Outlook 2014/15
FINANCIAL TRANSPARENCY Segment Sugar: Outlook 2014/15 Price reduction with all-the year effect Revenues Increased trend towards spot business Significant revenue decrease (Previous year*: 3,901 mn €) Operating Decreasing price level in light of increasingly worsening economic Profit environment in E
Slide 29: Segment Sugar: Mid term Outlook
FINANCIAL TRANSPARENCY Segment Sugar: Mid term Outlook Global demand trend of ~ 2% p.a. growth intact Operating Profit Perspective (population growth, increase in per-capita incomeW) Recovery of world market price Temporary EU market distortion in transition period ~ 250 mn € Strong market position
Slide 30: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 11 3. Development of Segments Sugar page 16 Special Products page 31 CropEnergies page 40 Fruit page 46 4. Outlook 2014/15 page 52 5. Appendix Annual Financial Statement 2013/14 page 62 Long-term development
Slide 31: Segment Special Products: Key figures
FINANCIAL TRANSPARENCY Segment Special Products: Key figures (mn €) 2010/11 2011/12 2012/13 2013/14 Revenues 1.575 1.806 1.862 1.882 EBITDA 218 231 214 199 EBITDA-Margin 13,8% 12,8% 11,5% 10,6% Operating profit 144 149 132 122 Operating Margin 9,1% 8,3% 7,1% 6,5% Restructuring and special items -6 -
Slide 32: Segment Special Products: Development 2013/14
FINANCIAL TRANSPARENCY Segment Special Products: Development 2013/14 Revenues (mn €) Operating profit (mn €) 132 1,882 122 1,862 2012/13 2013/14 2012/13 2013/14 Increase in volume sold Starch (incl. AGRANA bioethanol) Lower pricing in division starch Decrease pricing stronger than decrease in raw ma
Slide 33: Segment Special Products
FINANCIAL TRANSPARENCY Segment Special Products BENEO: World market leader with Revenues (mn €) premium food ingredients like CAGR 2008/09-2013/14: ~6 % Isomalt, Inulin, Oligofructose or rice 1,806 1,862 1,575 starch 1,396 Freiberger: Private-label chilled and 1,283 1,427 deep frozen convenience foo
Slide 34: 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 35: Segment Special Products: Division Starch
FINANCIAL TRANSPARENCY Segment Special Products: Division 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 Commisioning of new Agra
Slide 36: 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 37: 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 38: Segment Special Products: Outlook 2014/15
FINANCIAL TRANSPARENCY Segment Special Products: Outlook 2014/15 Divisions Freiberger, Beneo and PortionPack overall performance Revenues to be stable Division starch with slight decrease Slight decrease in revenues (Previous year*: 1,740 mn €) Operating Divisions Freiberger, Beneo and PortionPack o
Slide 39: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 11 3. Development of Segments Sugar page 16 Special Products page 31 CropEnergies page 40 Fruit page 46 4. Outlook 2014/15 page 52 5. Appendix Annual Financial Statement 2013/14 page 62 Long-term development
Slide 40: Segment CropEnergies: Key figures
FINANCIAL TRANSPARENCY Segment CropEnergies: Key figures (mn €) 2010/11 2011/12 2012/13 2013/14 Revenues 437 529 645 720 EBITDA 76 84 119 69 EBITDA-Margin 17,5% 15,9% 18,5% 9,5% Operating profit 46 53 87 35 Operating Margin 10,5% 10,0% 13,5% 4,8% Restructuring and special items 1 -1 0 -7 Income from
Slide 41: Segment CropEnergies: Development 2013/14 (I)
FINANCIAL TRANSPARENCY Segment CropEnergies: Development 2013/14 (I) Revenues (mn €) Operating profit (mn €) 87 720 645 35 2012/13 2013/14 2012/13 2013/14 Significantly higher ethanol sales Significantly lower ethanol pricing Increased price level for animal feed Start-up costs Ensus and food produc
Slide 42: Segment CropEnergies: Development 2013/14 (II)
FINANCIAL TRANSPARENCY Segment CropEnergies: Development 2013/14 (II) Market development: Quotation: Platts fuel-EtOH T2 €/m3 700 Increase grain prices Decrease in fuel demand 600 Higher imports from duty-free preferential sources and from USA via Norway avoiding 500 current duty regulation Strong e
Slide 43: EU biofuels market and policy
FINANCIAL TRANSPARENCY EU biofuels market and policy Amendment of “Renewable Energies EU: Market potential and market reality 15,000 Directive” and “Fuel Quality Directive” 12,500 European Parliament and Council Market NAP (in 1,000 m3) 10,000 demand higher blending quotas 7,500 Discussion to be con
Slide 44: Segment CropEnergies: Outlook 2014/15
FINANCIAL TRANSPARENCY Segment CropEnergies: Outlook 2014/15 Increase in production and sales of bioethanol, food and animal feed Revenues via new production site Ensus and further optimization in production facilities Revenue increase to above 800 mn € (Previous year*: 720 mn €) Operating High vola
Slide 45: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 11 3. Development of Segments Sugar page 16 Special Products page 31 CropEnergies page 40 Fruit page 46 4. Outlook 2014/15 page 52 5. Appendix Annual Financial Statement 2013/14 page 62 Long-term development
Slide 46: Segment Fruit: Key figures
FINANCIAL TRANSPARENCY Segment Fruit: Key figures (mn €) 2010/11 2011/12 2012/13 2013/14 Revenues 870 929 1.140 1.172 EBITDA 81 74 83 106 EBITDA-Margin 9,4% 7,9% 7,3% 9,0% Operating profit 46 38 45 65 Operating Margin 5,4% 4,1% 4,0% 5,5% Restructuring and special items 0 -1 -19 -1 Income from operat
Slide 47: Segment Fruit: Development 2013/14
FINANCIAL TRANSPARENCY Segment Fruit: Development 2013/14 Revenues (mn €) Operating profit (mn €) 65 1,172 45 1,140 2012/13 2013/14 2012/13 2013/14 Fruit preparations (revenue share ~ 75%) Increase in revenues due to higher volumes despite lower prices in H2 Higher volumes Full year consolidation of
Slide 48: 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: Leading European producer (market leader in apple juice concentrates) Core comp
Slide 49: Division Fruit Preparations: Fourth production site USA
FINANCIAL TRANSPARENCY 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
Slide 50: Segment Fruit: Outlook 2014/15
FINANCIAL TRANSPARENCY Segment Fruit: Outlook 2014/15 Slightly lower revenues in division fruit juice concentrates Revenues compensated by higher volumes in division fruit preparations in all main regions Revenues on prior year‘s level (Previous year: 1,172 mn €) Operating Earnings improvement in di
Slide 51: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 11 3. Development of Segments Sugar page 16 Special Products page 31 CropEnergies page 40 Fruit page 46 4. Outlook 2014/15 page 52 5. Appendix Annual Financial Statement 2013/14 page 62 Long-term development
Slide 52: Bridge (I) – Income statement
FINANCIAL TRANSPARENCY Bridge (I) – Income statement figures accounting figures Affected joint ventures changes due adjusted presented Studen to IFRS 11 (Segment sugar) mn € 2013/14 2013/14 Revenues 7.533 -202 7.735 Hungrana EBITDA 889 -44 933 (Segment special Depreciation -267 8 -275 products) Oper
Slide 53: Bridge IFRS (II) – Segment data
FINANCIAL TRANSPARENCY Bridge IFRS (II) – Segment data accounting figures figures changes due adjusted presented to IFRS 11 mn € 2013/14 2013/14 Group Revenues 7.533 -202 7.735 Operating profit 622 -36 658 Sugar Revenues 3.901 -60 3.961 Operating profit 436 0 436 Special Pr. Revenues 1.740 -142 1.88
Slide 54: Outlook 2014/15 (I)
FINANCIAL TRANSPARENCY Outlook 2014/15 (I) Revenues Operating Profit 2013/14* 2014/15e 2013/14* 2014/15e Sugar 3.9 bn € 436 mn € ~100 mn € Special 1.7 bn € 85 mn € Products -30 to CropEnergies 720 mn € >800 mn € 36 mn € +20 mn € Fruit 1.2 bn € 65 mn € Group 7.5 bn € ~ 7.0 mn € 622 mn € ~ 200 mn € *
Slide 55: Outlook 2014/15 (II)
FINANCIAL TRANSPARENCY Outlook 2014/15 (II) 212/13e 2013/14* 2014/15e EBITDA 933 mn € ~ 500 mn € Investments 383 mn € ~ 450-500 mn € Fixed Assets Investments 22 mn € - Finan. Assets Step-up 193 mn € ~ 30 mn € ** subsidiaries RoCE 11.0 % * Not adjusted for IFRS 11 ** Purchase Agrana bioethanol minori
Slide 56: Outlook 2014/15 (III)
FINANCIAL TRANSPARENCY Outlook 2014/15 (III) 212/13e 2013/14* 2014/15e Net Financial 561 mn € ~ 650-750 mn € Debt Cash flow 689 mn € >450 mn € Cash flow / 8.9 % >6.5 % Revenues Equity ratio 53.4 % ~ 53 % * Not adjusted for IFRS 11 Südzucker Group, page 56
Slide 57: Summary (I)
FINANCIAL TRANSPARENCY Summary (I) Despite significant decrease in operating profit following record year 2012/13, third best operating Financial Year 2013/14 profit of corporate history Adjusted targets achieved RoCE > 10 % Despite higher capex level, antitrust fine and increase in Agrana sharehold
Slide 58: Summary (II)
FINANCIAL TRANSPARENCY Summary (II) Burden mainly from temporary difficult market environment in sugar and ethanol markets lead to Financial Year 2014/15 significant operating profit decrease on group level Continuation of high capex level to secure future growth New starch and neutral alcohol plant
Slide 59: Mid term Outlook (I) – Operating Profit
FINANCIAL TRANSPARENCY Mid term Outlook (I) – Operating Profit Fruit Launch USA Crop Volume growth parallel Energies to market growth ~ 550 Ensus: Utilization and mn € efficiency gains Special Normalisation ethanol pricing Products Utilization Pischelsdorf Launch Zeitz Sugar Biomass boiler Chile ~ 2
Slide 60: Mid term Outlook (II) – EBITDA and Capex
FINANCIAL TRANSPARENCY Mid term Outlook (II) – EBITDA and Capex ~ 850 Room for ~ 450 – 500 mn € manoeuvre mn € Growth ~ 500 mn € Main- Main- tenance tenance ~250 mn € EBITDA Capex EBITDA Capex 2014/15 mid term Südzucker Group, page 60
Slide 61: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 11 3. Development of Segments Sugar page 16 Special Products page 31 CropEnergies page 40 Fruit page 46 4. Outlook 2014/15 page 52 5. Appendix Annual Financial Statement 2013/14 page 62 Long-term development
Slide 62: Revenue development
FINANCIAL TRANSPARENCY Revenue development (mn €) -144 mn € (-2%) +32 (+3%) -271 (-6%) +75 (+12%) +20 (+1%) Fruit Sugar Special Crop Products Energies 7,879 7,735 2012/13 2013/14 Südzucker Group, page 62
Slide 63: Operating profit development
FINANCIAL TRANSPARENCY Operating profit development (mn €) -314 mn € (-32%) -272 (-38%) 972 -10 (-8%) -52 (-60%) Sugar +20 (+43%) Special Products Crop Fruit Energies 658 2012/13 2013/14 Südzucker Group, page 63
Slide 64: Earnings before income taxes
FINANCIAL TRANSPARENCY Earnings before income taxes (mn €) 2013/14 2012/13 ∆ Operating profit 658 972 -314 Restructuring & special items -115 -17 -98 Income from operations (EBIT) 543 955 -412 Income from companies consolidated at equity 20 13 7 Financial result -61 -102 41 Earnings before income ta
Slide 65: Earnings per share
FINANCIAL TRANSPARENCY Earnings per share (mn €) 2013/14 2012/13 ∆ Earnings before income taxes 502 866 -364 Taxes on income -112 -132 20 Consolidated net earnings 390 734 -344 thereof Südzucker AG shareholders 282 592 -310 thereof hybrid capital 26 26 0 thereof other minority interest 82 116 -34 Ea
Slide 66: Investments and depreciations
FINANCIAL TRANSPARENCY Investments and depreciations (mn €) 2013/14 2012/13 ∆ 2013/14 Fixed Assets 383 338 45 Depreciation 275 Sugar 197 203 -6 Sugar 123 Special Products 116 89 27 Special Products 77 CropEnergies 18 11 7 CropEnergies 34 Fruit 52 35 17 Fruit 41 Financial Assets 22 183 -161 Sugar 22
Slide 67: Net Financial Debt remains on low level despite one-off payments
FINANCIAL TRANSPARENCY Net Financial Debt remains on low level despite one-off payments (mn €) -259 Dividends -193 689 -22 Earn-out Acquisition ED&F Man Agrana 24 62 -383 Cash flow Working Capital Capital increase subsidiaries Investments 561 464 NFD NFD 28.02.2013 28.02.2014 Südzucker Group, page 6
Slide 68: Financial headroom remains high
FINANCIAL TRANSPARENCY Financial headroom remains high 1750 NFS 1500 Cash flow 1250 1000 mn € 750 500 250 0 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 NFD/CF 3.2x 1.9x 1.4x 1.0x 0.5x 0.8x Südzucker Group, page 68
Slide 69: Very solid balance sheet ratios
FINANCIAL TRANSPARENCY Very solid balance sheet ratios (mn €) 28.02.2011 29.02.2012 28.02.2013 28.02.2014 Total assets 7.260 8.289 8.806 8.728 Equity 3.687 3.969 4.731 4.663 Equity ratio 50,8% 47,9% 53,7% 53,4% Net Financial Debt (NFD) 854 791 464 561 Gearing (NFD/Equity) 23,2% 19,9% 9,8% 12,0% Cash
Slide 70: Adjusted targets 2013/14 achieved
FINANCIAL TRANSPARENCY Adjusted targets 2013/14 achieved Outlook 2013/14 Reported 2013/14 Revenues ~ 7.6 bn € 7.7 bn € Operating Profit ~ 650 mn € 658 mn € Investments* ~ 450 mn € 383 mn € Net Financial deutliche ~ 500 – 650 mn € 561 mn € Debt Ergebniserholung * excl. investments in financial assets
Slide 71: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 11 3. Development of Segments Sugar page 16 Special Products page 31 CropEnergies page 40 Fruit page 46 4. Outlook 2014/15 page 52 5. Appendix Annual Financial Statement 2013/14 page 62 Long-term development
Slide 72: Long-term development (I)
FINANCIAL TRANSPARENCY Long-term development (I) Pre-Reform Transition Period Post-Transition Period Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Outlook (mn €) 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2013/14e Revenues 4.827 5.347 5.76
Slide 73: Long-term development (II)
FINANCIAL TRANSPARENCY Long-term development (II) Cash flow (mn €) Revenues (bn €) 996 7.9 7.7 823 7.0 ~7.0 689 5.8 5.8 5.9 5.7 6.2 5.3 527 554 553 606 498 504 > 450 Net Financial Debt (mn €) Operating Profit (mn €) 972 1,632 1,508 751 1,177 658 1,065 521 811 854 791 450 419 403 ~650-750 561 258 464
Slide 74: Segments: Return on Capital Employed (RoCE)
FINANCIAL TRANSPARENCY Return on Capital Employed (RoCE) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15e Sugar 7.5% 10.4% 17.1% 22.4% 13.6% Special Prod. 10.5% 10.8% 10.7% 9.5% 8.7% Segments CropEnergies 2.3% 8.7% 10.2% 17.3% 6.3% Fruit 5.5% 6.7% 4.7% 5.0% 8.1% RoCE 7.5% 9.8% 13.2% 16.3% 11.0% Grou
Slide 75: Return on Capital Employed (RoCE)
FINANCIAL TRANSPARENCY Return on Capital Employed (RoCE) 2013/14 2012/13 (mn €) RoCE RoCE Op. Profit Cap. Employed Südzucker Group 11,0% 16,3% 658 5.975 Sugar 13,6% 22,4% 436 3.222 Special Products 8,7% 9,5% 122 1.403 CropEnergies 6,3% 17,3% 35 549 Fruit* 8,1% 5,0% 65 801 * Adjustment segment fruit:
Slide 76: Breakdown of Capital Employed (2013/14)
FINANCIAL TRANSPARENCY Breakdown of Capital Employed (2013/14) Breakdown by assets Breakdown by segments 13% 21% 9% 46% 5,975 mn € 5,975 mn € 54% 24% 33% Sugar Special Products Goodwill Working Capital Fixed assets CropEnergies Fruit Südzucker Group, page 76
Slide 77: Südzucker with strong capital market presence
FINANCIAL TRANSPARENCY Südzucker with strong capital market presence Südzucker Bonds Südzucker Share 36% 10% 7% Financial 52% 204.2 mn liabilities* shares 38% 57% Liabilities to banks Others Bonds SZVG Zucker Invest GmbH Free Float (mn €) Due date Coupon Nominal value Key figures as of February 28,
Slide 78: Financing maturity profile
FINANCIAL TRANSPARENCY Financing maturity profile (as of February 28, 2014) April 2014 5.90% 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 June 2015 the exercise of the ca
Slide 79: Liquidity profile end of period
FINANCIAL TRANSPARENCY Liquidity profile end of period (mn €) Q4 2013/14 Q3 2013/14 Q2 2013/14 Q1 2013/14 Q4 2012/13 Net financial debt -561 -79 -303 -641 -464 Cash & Cash equivalents / securities 657 1.002 796 737 631 Gross financial debt -1.218 -1.081 -1.100 -1.378 -1.096 Long-term financial debt
Slide 80: Group balance sheet
FINANCIAL TRANSPARENCY Group balance sheet (mn €) Assets Liabilities 29.02.2012 28.02.2013 29.02.2012 28.02.2013 1,924 Other current 1,914 2,292 (21.8 %) (21.9 %) Current liabilities 2,439 assets (26.0 %) (27.9 %) 2,568 Inventories 2,387 1,783 Non-current 1,627 (29.2 %) (27.4 %) (20.3 %) (18.7 %) li
Slide 81: Group balance sheet
FINANCIAL TRANSPARENCY Group balance sheet (mn €) 28.02.2014 28.02.2013 (mn €) 28.02.2014 28.02.2013 Intangible assets 1.193 13,7% 1.189 13,5% Equity attributable to shareholders of SZ AG 3.305 37,9% 3.264 37,1% Fixed assets 2.729 31,3% 2.633 29,9% Hybrid capital 684 7,8% 684 7,8% Shares in companie
Slide 82: Agenda
FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Financing page 11 3. Development of Segments Sugar page 16 Special Products page 31 CropEnergies page 40 Fruit page 46 4. Outlook 2014/15 page 52 5. Appendix Annual Financial Statement 2013/14 page 62 Long-term development
Slide 83: Revenue by region 2013/14
FINANCIAL TRANSPARENCY Revenue by region 2013/14 Rest of world Germany (16 %) (26 %) 7,735 mn € EU 13 EU 15 (15 %) (43 %) Südzucker Group, page 83
Slide 84: Segment Sugar: Campaign SMY 2013/14
FINANCIAL TRANSPARENCY 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 thereof from beets: 4.3 (4.5) mn tons thereof raw sugar raff
Slide 85: 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 85
Slide 86: Price development for raw and white sugar
FINANCIAL TRANSPARENCY Price development for raw and white sugar (NYMEX, LIFFE, EU) 700 700 600 600 500 500 Quotation for sugar in € / ton Quotation for sugar in € / ton 400 400 300 300 200 200 100 100 Jan-13 May-13 Jun-13 Jan-14 May-14 Feb-13 Mar-13 Apr-13 Jul-13 Oct-13 Feb-14 Mar-14 Apr-14 Aug-13
Slide 87: EU: Production and consumption of bioethanol in 2013
FINANCIAL TRANSPARENCY EU: Production and consumption of bioethanol in 2013 Production Consumption 2013e: 6.6 million m3 (+0%) 2013e: 7.9 million m3 (-3.0%) Fuel: 4.6 million m3 (+0.9%) Fuel: 5.5 million m3 (-4.3%) Production increase e. g. in Germany, EU-wide decrease of fuel ethanol with the Polan
Slide 88: Bioethanol sales in Germany in 2013
FINANCIAL TRANSPARENCY Bioethanol sales in Germany in 2013 Bioethanol consumption in Germany 180 6% Consumption of fuel ethanol in Germany 150 4,1% 4,1% 4,4% 4,0% 4,2% 4,1% 5% 3,8% declines by 3.4% to 1.5 million m3 120 4% (in 1,000 m3) 90 3% Approx. 86% or 1.3 million m3 bioethanol 60 2% are direct
Slide 89: 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 Jan-13 May-13 Jun-13 Jan-14 May-14 Feb-13 Mar-13 Apr-13 Jul-13 Oct-13 Feb-14 Mar-14 Apr-14 Aug-13 Sep-13 Nov-13 Dec-13 Fe
Slide 90: Investor Relations
FINANCIAL TRANSPARENCY Investor Relations Financial calender Contact July 10, 2014 Nikolai Baltruschat Q1 – 1st quarter report 2014/15 Head of Investor Relations Tel.: +49 (621) 421 – 843 July 17, 2014 nikolai.baltruschat@suedzucker.de Annual general meeting for fiscal 2013/14 Bernhard Juretzek Octo