Agrana Beteiligungs-ag · VIE:AGR
Agrana Beteiligungs-ag — H1 2014|15 Earnings Presentation
33 slides from Agrana Beteiligungs-ag's earnings presentation, Oct 9, 2014
Slide 1: Results for the first half of 2014|15
AGRANA Beteiligungs-AG Results for the first half of 2014|15 1 March – 31 August 2014 Vienna, 9 October 2014 Results for the first half of 2014|15, 9 October 2014
Slide 2: Overview H1 2014|15
Overview H1 2014|15 • Price pressure in the Sugar segment and non-recurring structural effects in Fruit (expenses for planned closure) led to reduction in revenue and EBIT €m 900 800.0 9% 800 765.6 8% 693.8 700 647.2 638.0 7% 582.3 EBIT-margin 600 6% Revenue 500 5% 400 4% 300 3% 200 2% 100 1% 0 0% Q
Slide 3: Overview H1 2014|15 results
Overview H1 2014|15 results €m H1 H1 Q2 Q2 2014|15 2013|141 % 2014|15 2013|141 % Revenue 1,285.2 1,565.6 -17.9 638.0 765.6 -16.7 Exceptional items (4.1) 0.0 n/a (4.1) 0.0 n/a EBIT 87.0 104.2 -16.5 34.1 44.6 -23.5 EBIT margin (%) 6.8 % 6.7 % 1.71 5.3 % 5.8 % -8.3 Profit for the period 60.9 69.2 -
Slide 4: Revenue by segment
Revenue by segment H1 2014|15 €m H1 2014|15 1,565.6 -17.9% 1,285.2 29.4% 627.6 -11.4% 43.3% 555.9 27.3% -3.8% 365.1 351.2 H1 2013|14* 572.9 -34.0% 378.1 36.6% 40,1% H1 2013|14* H1 2014|15 Sugar Starch Fruit 23.3% 4 | Results for the first half of 2014|15, 9 October 2014 * Restated according to IAS 8
Slide 5: EBIT by segment
EBIT* by segment H1 2014|15 €m H1 2014|15 7.4% 6.1% -16.5% 104.2 32.3% 38.7% 87.0 -22.4% 43.4 33.7 29.0% 7.2% +11.0% 22.7 EBIT margin 25.2 H1 2013|14** 38.1 -26.3% 28.1 6.7% 36.6% H1 2013|14** H1 2014|15 41.6% Sugar Starch Fruit 6.9% 21.8% 6.2% * Operating profit after exc. items and results from JV
Slide 6: Investment overview
Investment overview H1 2014|15 €m 120 --- Depreciation Most important projects in the Group: 100 ~ 96 • Expansion of molasses desugaring plant in Tulln, Austria (SUGAR) 80 • Erection of packaging centre in Kaposvar, Hungary (SUGAR) 60 56 • Capacity expansion of waxy corn derivative production in Asc
Slide 7: SUGAR
SUGAR 7 | Results for the first half of 2014|15, 9 October 2014
Slide 8: SUGAR segment: financial results H1 2014|15
Share of total revenue SUGAR segment 29.4 % Financial results H1 2014|15 Revenue €m -34.0% Revenue fell to € 378.1 million 572.9 • The reason was a continued reduction in sales prices 378.1 • To a lesser extent caused by a decrease in quantities sold into the sugar-using industry and to resellers H1
Slide 9: SUGAR segment: market environment
SUGAR segment Market environment H1 2013|14 • Supply will continue to exceed demand, making greater pressure on prices likely • Amid considerable volatility during the first half of the year due to continually changing crop forecasts, especially for the main Brazilian production regions, the world m
Slide 10: Quotation: raw sugar & white sugar
Quotation Raw sugar & white sugar January 2006 – October 2014 (USD) 2014|15 FY White sugar (LSE) 6 Oct. 2014: 434.4 USD/to = 347.1 EUR/to Raw sugar (NYSE) 6 Oct. 2014: 374.3 USD/to = 299.1 EUR/to 10 | Results for the first half of 2014|15, 9 October 2014
Slide 11: STARCH
STARCH 11 | Results for the first half of 2014|15, 9 October 2014
Slide 12: STARCH segment: financial results H1 2014|15
Share of total revenue STARCH segment 27,3 % Financial results H1 2014|15 Revenue -3.8% Revenue slightly down to € 351.2 million €m 356.1 351.2 • The decline was caused primarily by lower selling prices for bioethanol, native corn (maize) starch and starch saccharification products • The positive ef
Slide 13: STARCH segment: market environment
STARCH segment Market environment H1 2014|15 • World grain production in the 2014|15 grain marketing year is estimated by the International Grains Council at 1.98 billion tonnes (prior year: 1.99 billion tonnes), somewhat above the expected level of consumption • Global wheat production is forecast
Slide 14: Price development of cereals
Price development of cereals Wheat & corn (Paris) January 2006 – October 2014 (EUR) 2014|15 FY WHEAT Quotation (Paris) 6 Oct. 2014: 160.3 EUR/to CORN Quotation (Paris) 6 Oct. 2014: 144.0 EUR/to 14 | Results for the first half of 2014|15, 9 October 2014
Slide 15: Development of ethanol prices
EUR 0 100 200 300 400 500 600 700 800 900 2012-01-01 2012-02-01 2012-03-01 2012-04-01 2012-05-01 2012-06-01 2012-07-01 2012-08-01 2012-09-01 2012-10-01 2012-11-01 2012-12-01 2013-01-01 2013-02-01 2013-03-01 15 | Results for the first half of 2014|15, 9 October 2014 1 July 2012 – 6 October 2014 2013-
Slide 16: FRUIT
FRUIT 16 | Results for the first half of 2014|15, 9 October 2014
Slide 17: FRUIT segment: financial results H1 2014|15
Share of total revenue FRUIT segment 43,3 % Financial results H1 2014|15 Revenue Revenue down to € 555.9 million -11.4% €m 627.6 • In fruit preparations, sales quantities were held 555.9 nearly at the prior-year level • But foreign exchange effects from the stronger euro led to a revenue decline of
Slide 18: FRUIT segment: market environment
FRUIT segment Market environment H1 2014|15 Fruit preparations: • For fruit preparations, there is continuing growth in the non- European markets and a slight demand decline within the EU • Specifically, current market data for the last 52 weeks show a 2% decrease in Europe, while Russia saw growth
Slide 19: IFRS 11 Transition Consolidated Financial Statements H1 2014|15
IFRS 11 TRANSITION CONSOLIDATED FINANCIAL STATEMENTS H1 2014|15 19 | Results for the first half of 2014|15, 9 October 2014
Slide 20: Changes resulting from use of equity accounting from 2014|15 FY
Changes resulting from use of equity accounting from 2014|15 FY A quick reminder… The application of IFRS 11 (Joint Arrangements) is mandatory from the new 2014|15 financial year As a result, the companies of the HUNGRANA group (in the Starch segment) and of the West Balkans group (in the Sugar
Slide 21: Changes resulting from use of equity accounting for H1 2013|14
Changes resulting from use of equity accounting for H1 2013|14 The table below give the values published in the first half of the prior year (2013|14), the amount of their restatement for the transition to the equity method, and the values after the transition: AGRANA Group H1 2013|14 IFRS 11 H1 201
Slide 22: Consolidated income statement
Consolidated income statement €m (condensed) H1 H1 Q2 Q2 2014|15 2013|141 2014|15 2013|141 Revenue 1,285.2 1,565.6 638.0 765.6 Operating profit before exc. items & JV 78.2 90.6 31.7 38.9 Exceptional items (4.1) 0.0 (4.1) 0.0 Share of results of equity-accounted JV 12.9 13.6 6.5 5.8 EBIT 87.0 104.2 3
Slide 23: Analysis of net financial items
Analysis of net financial items €m H1 H1 2014|15 2013|141 Net interest expense (7.6) (7.4) Currency translation differences 2.9 (7.8) Other financial items (2.4) 0.0 Total of net financial items (7.1) (15.2) * Restated according to IAS 8 (-> IFRS 11) 23 | Results for the first half of 2014|15, 9 Oct
Slide 24: Consolidated cash flow statement
Consolidated cash flow statement €m (condensed) H1 2014|15 H1 2013|141 Operating cash flow before change in working capital 93.3 92.0 (Gains) on disposal of non-current assets (0.5) (0.6) Change in working capital 127.4 119.1 Net cash from operating activities 220.2 210.5 Net cash (used in) investin
Slide 25: Consolidated balance sheet
Consolidated balance sheet €m (condensed) 31 August 28 February 2014 20141 Non-current assets 1,121.3 1,103.9 Current assets 1,166.4 1,287.7 Total assets 2,287.7 2,391.6 Equity 1,192.7 1,192.7 Non-current liabilities 390.3 411.0 Current liabilities 704.7 787.9 Total equity and liabilities 2,287.7 2,
Slide 26: News Update & Outlook
Sugar. Starch. Fruit. NEWS UPDATE & OUTLOOK 26 | Results for the first half of 2014|15, 9 October 2014
Slide 27: Special activities in the FRUIT segment
“Special activities” in the FRUIT segment Market growth in North America • Start of the 4th US fruit preparations plant in Lysander|NY was successful • Total investment: € 30 million • New production capacity of 45,000 tonnes annually • New facility will serve as a response to rising customer demand
Slide 28: AGRANA Research & Innovation Center
AGRANA Research & Innovation Center Investment for the future • Opening of the new AGRANA Research & Innovation Center (ARIC) in Tulln, Austria, in September signals the beginning of a new chapter for AGRANA research • With these new premises, AGRANA has combined all research and innovation activiti
Slide 29: Outlook 2014|15 FY
Outlook 2014|15 FY Quantitative definitions of selected common modifying words used To help ensure that our financial communications are clear and easy to understand: Modifier Visualisation Numerical rate of change Steady +/- 0% up to 1% Slight(ly) or +/- more than 1% and up to 5% Moderate(ly)
Slide 30: Segment outlook 2014|15 FY
Segment outlook 2014|15 FY On the basis of using equity accounting to restate the 2013|14 comparative data • AGRANA predicts a significant revenue contraction in Sugar (2013|14: € 962.9 million) as a consequence of the decline in sugar SUGAR Revenue selling prices that is continuing in the second
Slide 31: Outlook AGRANA Group for 2014|15 FY
Outlook AGRANA Group for 2014|15 FY On the basis of using equity accounting to restate the 2013|14 comparative data AGRANA Group Revenue 2014|15 FY EBIT 2014|15 FY • For the 2014|15 financial year as a whole, AGRANA expects a significant decrease in Group revenue (2013|14: € 2,841.7 million),
Slide 32: Financial calendar for 2014|15
Financial calendar for 2014|15 13 January 2015 Results for the first three quarters of 2014|15 13 May 2015 Annual results for 2014|15 (Press conference) 3 July 2015 Annual General Meeting for 2014|15 8 July 2015 Ex-dividend date and dividend payment 32 | Results for the first half of 2014|15, 9 Octo
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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