AGRANA Beteiligungs-AG · VIE:AGR
AGRANA Beteiligungs-AG — Erste Group CEE Equity Conference 2021
58 slides from AGRANA Beteiligungs-AG's conference presentation, Oct 4, 2021
Slide 1: AGRANA CEE Equity Conference, Erste Group, 4 October 2021
ZU FRUCK I TE R STTAÄRC KEH FSR UUGCAHT R Der The natürliche natural upgrade Mehrwert AGRANA Beteiligungs-AG CEE Equity Conference Erste Group 4 October 2021
Slide 2: Contents
CONTENTS 1 Introduction & Business overview 2 Strategy, Management, COVID-19 3 Focus on ESG 4 Segment overview: Fruit, Starch and Sugar 5 Financials (Q1 2021|22) 6 Outlook 2021|22 AGRANA | CEE Conference | 4 October 2021 2
Slide 3: Introduction & Business Overview
AGRANA GROUP INTRODUCTION & BUSINESS OVERVIEW 3
Slide 4: Everyone knows Wiener Zucker
AGRANA GROUP EVERYONE KNOWS „WIENER ZUCKER“… AGRANA | CEE Conference | 4 October 2021 4
Slide 5: We all consume AGRANA (products)
STRATEGIC POSITIONING B2B WE ALL CONSUME AGRANA (PRODUCTS) At the beginning there AGRANA supplies is always agriculture… the Big Names... We all consume AGRANA refines agrarian AGRANA every day raw materials... without noticing it... confectionery, beverage, fermentation industries, food retailers;
Slide 6: AGRANA products in daily life: at a glance
AGRANA PRODUCTS IN DAILY LIFE AT A GLANCE FRUIT STARCH SUGAR ▪ Fruit juice concentrates customers are ▪ AGRANA produces starch and special Sugar is sold fruit juice and beverage bottlers and starch products ▪ to consumers via the food trade and fillers ▪ Starch is a complex carbohydrate ▪ to manufac
Slide 7: Segmentation by segment
55 PRODUCTION SITES WORLDWIDE SEGMENTATION BY SEGMENT FRUIT STARCH SUGAR 26 fruit preparations plants and 5 starch plants 7 sugar beet plants 14 fruit juice concentrate plants (incl. 2 bioethanol plants) 2 raw sugar refineries (& Instantina) Czech Rep. Slovakia Austria Hungary* Romania* Bosnia- Herz
Slide 8: Volumes processed and sold
AGRANA GROUP VOLUMES - PROCESSED AND SOLD Sales: 5.4 million tonnes Raw materials processed: 8.6 million tonnes 0.3 Total share 0.8 Fruit 14% Fruit Total share Sugar 36% 0.8 Sugar in million tonnes 1.9 2.6 4.8 Starch 2.7 Total share Starch 50% 0.1 Beet Raw Sugar Grain Potato Fruits AGRANA | CEE Conf
Slide 9: Focus on food: revenue by product group
REVENUE BY PRODUCT GROUP (2020|21) FOCUS ON FOOD FRUIT STARCH SUGAR € 1,166.6 m € 821.9 m € 558.5 m AGRANA | CEE Conference | 4 October 2021 9
Slide 10: History - milestones
AGRANA GROUP HISTORY - MILESTONES ACQUISITION of the American organic distribution EXPANSION company EXPANSION Of market position in Asia Marroquin of the company‘s through the acquisition of Organic presence in the area the Indian fruit processing International of fruit preparations plant SAIKRUPA
Slide 11: Shareholder structure
CURRENT STATUS SHAREHOLDER STRUCTURE TOTAL: 62,488,976 shares ~30% Rübenproduzenten Beteiligungs-GmbH ~50% (less one share -> AZ) ZBG ~70% AGRANA Raiffeisen-Holding NÖ-Wien Zucker, Stärke und 78.34% Frucht Holding AG ~10% ~50% Südzucker 2.74%1 18.92% FREE FLOAT 1 Directly held by Südzucker AGRANA |
Slide 12: Management, Strategy, COVID-19
AGRANA GROUP MANAGEMENT STRATEGY COVID-19 12
Slide 13: New Management Board
AGRANA GROUP NEW MANAGEMENT BOARD CEO Markus Mühleisen Ingrid-Helen Arnold • Strategy and economic • Internal Auditing policy CFO Stephan Büttner • Quality management • Finance • Sales • Human Resources CTO Norbert Harringer • IT • Public Relations and • Production / • Mergers & Communications Inves
Slide 14: Strategy for the future: our approach
STRATEGY FOR THE FUTURE OUR APPROACH With its diversified business model and sound balance sheet, AGRANA considers itself well positioned for the future. Execute properly and utilise growth projects (e.g. wheat starch plant II, China FP II, Japan) Working capital improvements -> to get financial res
Slide 15: Build on what exists and innovate
BUILD ON WHAT EXISTS AND INNOVATE Organisational change Customer and Value-added market focus orientation FRUIT STARCH SUGAR Profitable Doing business growth sustainably AGRANA | CEE Conference | 4 October 2021 15
Slide 16: AGRANA - part of critical infrastructure
CORONAVIRUS CRISIS AGRANA – PART OF CRITICAL INFRASTRUCTURE ▪ As a food producer, AGRANA is regarded as being a part of “critical infrastructure” ▪ The continuation of AGRANAs production activities safeguards supplying the population with food and feed products (and also jobs) ▪ By coordinating futu
Slide 17: Revenue split food vs non-food
FOCUS ON FOOD (REVENUE IN 2020|21) REVENUE SPLIT FOOD VS NON-FOOD GROUP FRUIT 3% 7% 17% 76% 97% Food Non-Food Animal Feed Food Non-Food STARCH SUGAR 15% 20% 39% 41% 85% Food Non-Food Animal Feed Food Non-Food AGRANA | CEE Conference | 4 October 2021 17
Slide 18: Q1 2021|22 overview
Q1 2021|22 OVERVIEW Revenue: € 705.8 m EBIT: € 20.9 m (Q1 2020|21: € 652.6 m) Q1 2020|21: € 32.0 m) EBIT margin: 3.0% Profit for the period: € 12.1 m (Q1 2020|21: 4.9%) (Q1 2020|21: € 19.2 m) Equity ratio: 54.5% Gearing ratio: 38.8% (28 Feb. 2021: 53.8%) (28 Feb. 2021: 33.4%) 56 ~8,562 Production si
Slide 19: Focus on ESG
AGRANA FOCUS ON ESG 19
Slide 20: AGRANA's understanding of sustainability
AGRANA‘S UNDERSTANDING OF SUSTAINABILITY Balance of economic, environmental and social responsibility AT AGRANA, WE … ▪ utilise almost 100% of the raw materials employed and use low- emission technologies to minimise impacts on the environment ▪ respect all our stakeholders and the communities where
Slide 21: Decarbonisation (1)
CLIMATE STRATEGY DECARBONISATION (1) AGRANA is committed to decarbonising its value chain by 2050 and works on a staged approach to reach this target. AGRANA target by 2040: CO2-neutral production (scope 1+2) Investment of approx. € 400 million AGRANA target by 2050: CO2-neutrality (scope 1+2+3) AGR
Slide 22: Decarbonisation (2)
CLIMATE STRATEGY DECARBONISATION (2) Intermediate target: 25% CO2 reduction by 2025|26 (base line: 2019|20) Annual investment of approx. € 10 million Measures: ▪ Use of electricity from renewable sources ▪ Phase-out of coal as an energy source at the last two coal-fired sugar production sites in Ser
Slide 23: Decarbonisation (3)
CLIMATE STRATEGY DECARBONISATION (3) From 2026|27 onwards, focus on energy recovery from low-protein raw material residues Example: AGRANA’s sugar factory in Kaposvár|HU, could cover approx. 70 % of primary energy consumption in the beet sugar campaign with biogas produced from beet pulp and other b
Slide 24: Fruit segment
S EG M EN T FRUIT 24
Slide 25: Fruit segment - business model
FRUIT SEGMENT - BUSINESS MODEL FRUIT PREPARATIONS FRUIT JUICE CONCENTRATES ▪ Based on mostly frozen fruits ▪ Based on fresh fruits ▪ Tailor-made customer products ▪ Production in the growing area of (several thousand recipes the fruits (water content and worldwide) quality of the fruits don't allow
Slide 26: Fruit preparation - what is it about?
FRUIT PREPARATION – WHAT IS IT ABOUT? FRUIT SUGAR FRUIT PREPARATIONS + = … most important ingredient of … sweetens and supports taste and optional flavors and colours fruit preparations durability for an even fruitier taste and ▪ Frozen (IQF or block) ▪ Crystal sugar an intense colour ▪ Aseptic ▪ Li
Slide 27: Fruit segment market position
FRUIT SEGMENT MARKET POSITION FRUIT PREPARATIONS Fruit preparations 26 FRUIT PREPARATION PLANTS & 14 FRUIT JUICE CONCENTRATE PLANTS ▪ World Market Leader in Fruit preparations global market share > 35% ▪ The emerging markets are overall showing good market growth rates, while the market’s sales volu
Slide 28: AGRANA starts production of fruit preparations in Japan
FRUIT SEGMENT AGRANA STARTS PRODUCTION OF FRUIT PREPARATIONS IN JAPAN ▪ Acquisition of the fruit preparations business of the local food producer Taiyo Kagaku Co. Ltd ▪ AGRANA Fruit Japan Ltd. has started production of fruit preparations on 1 April 2021 ▪ Now 6 sites in 4 Asian countries: China, Ind
Slide 29: Fruit segment market environment in Q1 2021|22
MARKET ENVIRONMENT IN Q1 2021|22 FRUIT SEGMENT Fruit preparations ▪ Top trends: naturalness, health, pleasure, convenience and sustainability ▪ Covid-19 pandemic is having a pronounced impact on many of these consumer trends ▪ Global economic impacts of the coronavirus crisis are driving a trend tow
Slide 30: Starch segment
S EG M EN T STARCH 30
Slide 31: Starch segment market position
STARCH SEGMENT MARKET POSITION ▪ Austrian production sites: STARCH ▪ Potato starch factory in Gmünd 5 starch plants ▪ Corn starch plant in Aschach (incl. 2 bioethanol plants) ▪ Wheat starch & bioethanol plant in Pischelsdorf ▪ Operational management and coordination of international holdings in Hung
Slide 32: Starch segment specialisation strategy
STARCH SEGMENT SPECIALISATION STRATEGY FOOD Focus of Growth in products from special VALUE END PRODUCT ▪ AGRANA raw materials (market Textile industry, construction leadership) DERIVATIVES, ETHERS AND ESTERS industry, cosmetic industry ▪ Growth in starch derivatives for fruit preparations MALTODEXTR
Slide 33: Starch segment market environment in Q1 2021|22
MARKET ENVIRONMENT IN Q1 2021|22 STARCH SEGMENT ▪ Covid-19 pandemic remained a factor in almost all sales markets for starch products ▪ In saccharification products, the market structure continues to be defined by high price pressure ▪ Packaging paper industry recently reported full order books agai
Slide 34: Commodity prices: wheat & corn
WHEAT & CORN (EURONEXT, PARIS) COMMODITY PRICES 1 January 2006 – 27 September 2021 (EUR) 2021|22 Wheat (Paris) 27 Sept. 2021: 253.0 EUR/t Corn (Paris) 27 Sept. 2021: 223.3 EUR/t AGRANA | CEE Conference | 4 October 2021 34
Slide 35: Ethanol and petrol prices
1 JANUARY 2017 – 20 SEPTEMBER 2021 (EUR) ETHANOL AND PETROL PRICES 2021|22 900 Average daily ethanol price in EUR/m³ (Ethanol T2 FOB Rdam EUR/cm Platts) 800 700 600 500 400 300 200 20 September 2021: Ethanol: 783.3 EUR/m3 100 Petrol: 449.8 EUR/m3 0 AGRANA | CEE Conference | 4 October 2021 35
Slide 36: AGRANA bioethanol activities
AGRANA BIOETHANOL ACTIVITIES PISCHELSDORF (Austria) ▪ Total investment: € 125 million ▪ Capacity: up to 240,000m³ (= 190,000 tonnes) ▪ Production start: June 2008 ▪ Raw material base: wheat, corn and sugar beet thick juice* ▪ By-products: up to 190,000 tonnes of ActiProt© (animal feed) HUNGRANA (Hun
Slide 37: Sugar segment
S EG M EN T SUGAR 37
Slide 38: AGRANA sugar since the end of quotas
BENEFIT FROM THE STRONG MARKET POSITION IN CEE AND SEE AGRANA SUGAR SINCE THE END OF QUOTAS ▪ CEE area will continue to be a “sugar deficit region” (AGRANA is located in these main deficit areas) ▪ Complexity in logistics and costs from Western Europe are somehow a protection of intra-EU imports ▪ D
Slide 39: Sugar segment market environment in Q1 2021|22
MARKET ENVIRONMENT IN Q1 2021|22 SUGAR SEGMENT ▪ World sugar market ▪ Since the outbreak of the coronavirus pandemic and a plunge in world sugar quotations in March/April 2020, sugar prices have risen steadily, due partly to the expectations for the world sugar balance ▪ During the period under revi
Slide 40: World sugar production & consumption
WORLD SUGAR PRODUCTION & CONSUMPTION Million tonnes 200 194.3 184.1 183.3 184.7182.4 185.7185.3 181.5 180.6179.0 179.9 179.4180,6 180.4181.1 178.7181.3 176.3 180 172.2 174.2 160 140 120 100 77.9 78.9 76.1 76.6 80 73.6 69.7 72.9 66.9 68.7 68.2 60 40 20 0 2012|13 2013|14 2014|15 2015|16 2016|17 2017|1
Slide 41: Sugar quotation: raw sugar & white sugar
RAW SUGAR & WHITE SUGAR SUGAR QUOTATION 2021|22 1 January 2006 – 27 September 2021 (USD) White sugar (LIFFE) 27 Sept. 2021: 505.9 USD/t = 431.6 EUR/t Raw sugar (ICE) 27 Sept. 2021: 423.1 USD/t = 361.0 EUR/t 1/1/2011 Lowest in 10 years: Lowest in 10 years: White sugar, 15/7/2019: 294.0 USD/t Raw suga
Slide 42: Monthly EU average prices
SUGAR PRICE REPORTING MONTHLY EU AVERAGE PRICES (JUNE 2012 TO JUNE 2021; € PER TONNE) 750 SMY 2020|21 650 550 June 2021 450 397 €/t 404 €/t 350 June 2021: 377.82 €/t 250 EU Average Price for White Sugar EU Reference Price London °5 Source: European Commission (as of 4 August 2021) and IEG Vantage (a
Slide 43: Financials
AGRANA InveSaa ‘Reh WWW. agrane
Slide 44: Revenue by segment
Q1 2021|22 VS PRIOR YEAR REVENUE BY SEGMENT €m 705.8 652.6 FRUIT ▪ In fruit preparations, revenue showed growth, due largely to higher sales volume 320.7 ▪ Revenue in the fruit juice concentrate activities saw a slight, 303.7 price-related decline STARCH ▪ Signs of recovery in the starch markets, wi
Slide 45: EBIT by segment
2021|22 VS PRIOR YEAR EBIT BY SEGMENT €m FRUIT GROUP ▪ Earnings result in fruit preparations was significantly above the year-ago level Fruit Starch Sugar ▪ Improvement mainly due to a positive performance in the Europe and Russia regions as well as in Dirafrost’s frozen fruit solutions business EBI
Slide 46: Consolidated income statement
CONSOLIDATED INCOME STATEMENT €m (condensed) Q1 2021|22 Q1 2020|21 Change Revenue 705.8 652.6 +8.2% EBITDA1 44.8 54.7 -18.1% Operating profit before except. items and results of equity-accounted JV 18.7 28.1 -33.5% Share of results of equity-accounted JV 2.2 3.9 -43.6% EBIT 20.9 32.0 -34.7% EBIT mar
Slide 47: Consolidated cash flow statement
CONSOLIDATED CASH FLOW STATEMENT €m (condensed) Q1 2021|22 Q1 2020|21 Change Operating cash flow before changes in working capital 44.5 56.0 -20.5% Changes in working capital (97.9) (48.9) >-100% Interest received and paid and income tax paid, net (7.1) (4.5) -58.2% Net cash (used in)/from operating
Slide 48: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET €m (condensed) 31 May 2021 28 Feb. 2021 Change Non-current assets 1,235.4 1,232.0 +0.3% Current assets 1,245.6 1,240.7 +0.4% Total assets 2,481.0 2,472.7 +0.3% Equity 1,353.3 1,329.1 +1.8% Non-current liabilities 586.6 597.4 -1.8% Current liabilities 541.1 546.2 -0.9% Tota
Slide 49: Dividend and earnings per share
DIVIDEND AND EARNINGS PER SHARE € 3 300% Dividend for 2020|21: 2.63 € 0.85 per share 3 244% 250% 2.24 2 200% 1.85 171% 1.78 2 1.46 150% 1.43 1.125 1 1.00 1.00 1.00 0.96 100% 0.90 0.90 0.90 0.85 0.77 1 0.45 89% 50% 63% 69% 50% 0.41 49% 56% 34% 0 0% 2012|13 2013|14 2014|15 2015|16 2016|17 2017|18 2018
Slide 50: Investment overview
MOST IMPORTANT PROJECTS IN THE GROUP INVESTMENT OVERVIEW €m Q1 2021|22 14.3 FRUIT • Mitry-Mory, France (new 11.1 5.0 filling plant) • Dachang, China (new laboratory) 5.0 4.4 STARCH • Aschach, Austria (corn processing) 5.0 • Gmünd, Austria 4.9 (wastewater) 1.1 SUGAR Q1 2020|21 Q1 2021|22 • Sered‘, Sl
Slide 51: Capex evolution
INVESTMENT FOR SUSTAINABLE GROWTH CAPEX EVOLUTION €m Sugar Starch Fruit Deprec. GROUP 183.8 € 1.2 billion investment between 149.8 2010|11 and 2019|20 149.7 140.9 130.0 116.0 114.7 97.1 91.2 ~90 72.3 55.9 AGRANA | CEE Conference | 4 October 2021 51
Slide 52: Financing structure
2020|21 FINANCING STRUCTURE 28 Feb. Due within Due after more 29 Feb. €m 2021 1 year than 1 year 2020 Borrowings 573.9 80.3 493.6 577.0 Securities and cash (130.4) (113.0) (equivalents) Net debt 443.5 464.0 Credit lines 999.9 116.4 883.5 1,003.2 AGRANA | CEE Conference | 4 October 2021 52
Slide 53: Outlook
IN DEMS ‘ND i ‘TOM a WW :
Slide 54: Outlook for 2021|22
AGRANA GROUP OUTLOOK FOR 2021|22 EBIT 2021|22 Revenue 2021|22 Given the ongoing Covid-19 crisis and the associated strong volatility in all business segments, the forecast for the full year is subject to very high uncertainty. EBIT in the second quarter of the current 2021|22 financial year is
Slide 55: Outlook for 2021|22 by segment
AGRANA SEGMENTS OUTLOOK FOR 2021|22 FRUIT STARCH SUGAR Revenue Revenue Revenue EBIT EBIT EBIT AGRANA | CEE Conference | 4 October 2021 55
Slide 56: Investment plan
OUTLOOK FOR 2021|22 INVESTMENT PLAN ▪ Total investment across the three business segments in the 2021|22 financial year, at approximately € 90 million ▪ Significantly below budgeted depreciation (€ ~121 million) Investment split 2021|22 ▪ Continuation of implementation (€ ~90 million) phase after co
Slide 57: Financial calendar
2021|22 FINANCIAL CALENDAR 14 October 2021 Results for first half of 2021|22 13 January 2022 Results for first three quarters of 2021|22 AGRANA | CEE Conference | 4 October 2021 57
Slide 58: 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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