AGRANA Beteiligungs-AG · VIE:AGR
AGRANA Beteiligungs-AG — H1 2018|19 Earnings Presentation
33 slides from AGRANA Beteiligungs-AG's earnings presentation, Oct 11, 2018
Slide 1: AGRANA Results for the first half of 2018|19
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 2018|19 Presentation for investors and analysts Vienna, 11 October 2018
Slide 2: H1 2018|19 Overview
H1 2018|19 OVERVIEW Revenue: € 1,261.0 m (H1 prior year: € 1,362.1 m) EBIT: € 63.0 m (H1 prior year: € 130.6 m) Wo EBIT margin: 5.0% (H1 prior year: 9.6%) World market leader in the production of Also Q2 EBIT was significantly below the very good level of the same period one year earlier FRU
Slide 3: Revenue by Segment
H1 2018|19 VS PRIOR YEAR REVENUE BY SEGMENT €m 1,362.1 1,261.0 H1 2018|19 48.5% 22.0% 599.9 611.6 Fruit 29.5% 385.5 Starch 372.0 Sugar H1 2017|18 GROUP 376.7 27.7% 277.4 44.0% H1 2017|18 H1 2018|19 28.3% AGRANA | Results for H1 2018|19 | 11 October 2018 3
Slide 4: EBIT by Segment
H1 2018|19 VS PRIOR YEAR EBIT BY SEGMENT €m GROUP Fruit EBIT margin Starch H1 17|18 Sugar 9.6% 130.6 EBIT 7.3% 43.5 margin H1 18|19 63.0 5.0% 13.1% 50.5 46.8 7.7% 9.7% 36.6 20.3 5.5% (4.1) (1.5%) H1 2017|18 H1 2018|19 AGRANA | Results for H1 2018|19 | 11 October 2018 4
Slide 5: Investment Overview
MOST IMPORTANT PROJECTS IN THE GROUP INVESTMENT OVERVIEW H1 2018|19 €m FRUIT 82.7 • Various projects across all 44 production sites; key projects: construction of the new, second fruit preparations plant in 20.7 China and a new carrot juice concentrate production line in Hungary 58.1 STARCH 15.3 • I
Slide 6: Fruit Segment
S EG M EN T FRUIT 6
Slide 7: Fruit Segment: Market Environment in H1 2018|19
MARKET ENVIRONMENT IN H1 2018|19 FRUIT SEGMENT Fruit preparations Market-dominating global consumer trends continue to be naturalness, sustainability and transparency, enjoyment and health Launch of products with a strong focus on animal welfare Vegan milk alternatives (e.g. soybean) continue
Slide 8: Fruit Segment: Financial Results for H1 2018|19
FINANCIAL RESULTS FOR H1 2018|19 FRUIT SEGMENT REVENUE REVENUE slightly up to € 611.6 million €m Fruit preparations: revenue remained constant despite an 599.9 611.6 increase in sales volumes -> negative currency translation effects Fruit juice concentrate business: revenue rose as a result of t
Slide 9: Starch Segment
S EG M EN T STARCH 9
Slide 10: Starch Segment: Market Environment in H1 2018|19
MARKET ENVIRONMENT IN H1 2018|19 STARCH SEGMENT Difficult market setting for sugar -> huge impact on starch sweetener products low sugar prices with direct downward price pressure on isoglucose customers also had very little incentive to use additional quantities of starch sweetener products
Slide 11: World Cereal Production & Consumption
WORLD CEREAL PRODUCTION & CONSUMPTION million tonnes 2500 2,137.7 2,129.1 2,055.7 2,079.0 2,092.1 2,107.3 2,062.7 2,011.1 2,011.8 2,015.6 1,986.0 2000 1,859.6 1,854.4 1,931.0 1,759.0 1,787.1 1,803.7 1,814.4 1500 1000 Stock-to-use ratio: 25,3% 619.6 604.4 531.4 561.0 538.1 487.4 500 412.8 418.0 407.3
Slide 12: Commodity Prices: Wheat & Corn
WHEAT & CORN (EURONEXT, PARIS) COMMODITY PRICES 1 January 2006 – 9 October 2018 (EUR) 2018|19 FY Wheat (Paris) 9 Oct. 2018: 203.3 EUR/t Corn (Paris) 9 Oct. 2018: 173.8 EUR/t AGRANA | Results for H1 2018|19 | 11 October 2018 12
Slide 13: Ethanol and Petrol Prices
1 JANUARY 2008 – 8 OCTOBER 2018 (EUR) ETHANOL AND PETROL PRICES 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 8 October 2018: Ethanol: 482.0 EUR/m3 100 Petrol: 464.2
Slide 14: Starch Segment: Financial Results for H1 2018|19
FINANCIAL RESULTS FOR H1 2018|19 STARCH SEGMENT REVENUE REVENUE at € 372.0 m slightly below prior year €m Reduction was caused mainly by price-related lower 385.5 revenue from bioethanol -> Platts quotations during the 372.0 reporting period down significantly from a year ago Revenue also declin
Slide 15: Sugar Segment
S EG M EN T SUGAR 15
Slide 16: Sugar Segment: Market Environment in H1 2018|19
MARKET ENVIRONMENT IN H1 2018|19 SUGAR SEGMENT World sugar market For SMY 2018|19, F.O. Licht is projecting again a production surplus; stocks up to 84.6 million tonnes (SMY 2017|18: 76.3 million tonnes) As of the beginning of the 2018|19 FY, world market prices remain persistently low, mainly
Slide 17: World Sugar Production & Consumption
WORLD SUGAR PRODUCTION & CONSUMPTION Million tonnes 200 193.2 194.2 184.2 183.0 185.7 181.5 180.7 178.6 179.9 179.5 180.5 174.4 176.1 174.1 180 171.7 165.2 168.1 162.3 162.6 158.5 160 140 120 100 84.6 79.1 80.7 80 74.5 76.3 71.4 68.4 64.2 56.1 57.5 60 40 20 0 2009|10 2010|11 2011|12 2012|13 2013|14
Slide 18: Sugar Quotation: Raw Sugar & White Sugar
RAW SUGAR & WHITE SUGAR SUGAR QUOTATION 1 January 2006 – 9 October 2018 (USD) 2018|19 FY White sugar (LIFFE) 9 Oct. 2018: 353.6 USD/t = 307.7 EUR/t Raw sugar (ICE) 9 Oct. 2018: 285.5 USD/t = 248.4 EUR/t 1/1/2009 10-years-low: 9-years-low: Raw sugar, 27/9/18: 216.7 USD/t White sugar, 20/8/18: 303.7 U
Slide 19: Sugar Price Reporting: Monthly EU Average Prices
SUGAR PRICE REPORTING MONTHLY EU AVERAGE PRICES (SEPTEMBER 2009 TO SEPTEMBER 2018; € PER TONNE) Decline in October 2017 to € 420 (September 2017: € 490) -> start of the new SMY 2017|18 (without quotas and minimum beet prices) July 2018 346 €/t € 346 is the lowest average price since the start of the
Slide 20: Sugar Segment: Financial Results for H1 2018|19
FINANCIAL RESULTS FOR H1 2018|19 SUGAR SEGMENT REVENUE REVENUE down to € 277.4 million €m Downward change was caused by a significant year-on- 376.7 year reduction in sugar sales prices 277.4 Also lower sugar sales volumes (mainly in export and non-food sectors) H1 2017|18 H1 2018|19 EBIT Negati
Slide 21: Consolidated Financial Statements (Condensed)
H1 2018|19 CONSOLIDATED FINANCIAL STATEMENTS (CONDENSED) 21
Slide 22: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT €m (condensed) H1 H1 Q2 Q2 2018|19 2017|18 2018|19 2017|18 Revenue 1,261.0 1,362.1 630.7 677.9 EBITDA1 97.0 149.6 43.5 72.0 Operating profit before except. items and results of equity-accounted JV 57.2 113.4 23.4 53.7 Share of results of equity-accounted JV 6.6 20.0 3.3
Slide 23: Analysis of Net Financial Items
ANALYSIS OF NET FINANCIAL ITEMS H1 H1 €m 2018|19 2017|18 Change Net interest expense (2.5) (4.8) +47.9% Currency translation differences (7.7) (2.6) > -100% Other financial items (0.7) (1.5) +53.3% Total (10.9) (8.9) -22.5% AGRANA | Results for H1 2018|19 | 11 October 2018 23
Slide 24: Consolidated Cash Flow Statement
CONSOLIDATED CASH FLOW STATEMENT €m (condensed) H1 2018|19 H1 2017|18 Change Operating cash flow before changes in working capital 108.7 176.5 -38.4% Changes in working capital 34.1 46.3 -26.3% Total of interest paid/received and tax paid, net (15.2) (29.3) +48.1% Net cash from operating activities
Slide 25: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET €m (condensed) 31 Aug. 2018 28 Feb. 2018 Change Non-current assets 1,198.4 1,161.0 +3.2% Current assets 1,066.0 1,195.4 -10.8% Total assets 2,264.4 2,356.4 -3.9% Equity 1,398.7 1,454.0 -3.8% Non-current liabilities 374.4 419.4 -10.7% Current liabilities 491.3 483.0 +1.7% T
Slide 26: Share Split 1:4
AGRANA SHARE SPLIT 1:4 At the 31st ordinary AGM, on 6 July 2018, a resolution was passed pertaining to a 1:4 share split Share split was executed end of July 2018 The corresponding amendment to the articles of association in the register of companies was made on 24 July 2018 Trading in the n
Slide 27: Projects and Outlook 2018|19
2018|19 PROJECTS AND OUTLOOK 27
Slide 28: Projects in the Fruit Segment: China and Algeria
PROJECTS IN THE FRUIT SEGMENT CHINA AND ALGERIA Construction of the second fruit preparations plant in China, Changzhou (Shanghai region), is on schedule Start of production expected end of 2018 CY Total investment: € 22 million Production capacity: 30,000 tonnes China is the world's large
Slide 29: Projects in the Starch Segment: Potato and Wheat Starch
PROJECTS IN THE STARCH SEGMENT POTATO AND WHEAT STARCH Investment at the potato starch factory in Gmünd|Austria: Construction of a new potato starch dryer Expansion of daily processing capacity from 1,600 to 2,000 tonnes Refining of potato pulp to a food ingredient, water binder and fiber In
Slide 30: Outlook for 2018|19: AGRANA Segments
AGRANA SEGMENTS OUTLOOK FOR 2018|19 Fruit segment: AGRANA expects 2018|19 FY year to bring moderate growth in FRUIT revenue and a significant improvement in EBIT Revenue Fruit preparations: revenue is predicted to increase, driven by rising sales volumes in EBIT all areas (particularly in n
Slide 31: Outlook for 2018|19: AGRANA Group
AGRANA GROUP OUTLOOK FOR 2018|19 AGRANA Group EBIT Guidance confirmed As a result of the current challenges, especially in the Sugar segment, the Group's EBIT is expected to decrease significantly in the 2018|19 financial year; revenue is projected to be slightly below the year before Total inve
Slide 32: Financial Calendar 2019|20
2019|20 FINANCIAL CALENDAR 10 January 2019 Results for first three quarters of 2018|19 13 May 2019 Results for full year 2018|19 (annual results press conference) 25 June 2019 Record date for Annual General Meeting participation 5 July 2019 Annual General Meeting in respect of 2018|19 10 July 2019 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
AGRANA Beteiligungs-AG — H1 2018|19 Earnings Presentation on 6ix