Agrana Beteiligungs-ag · VIE:AGR

Agrana Beteiligungs-ag — German Corporate Conference 2018

60 slides from Agrana Beteiligungs-ag's conference presentation, Jan 16, 2018

Slide 1: German Corporate Conference 2018
ZU S UC GKAERR ST ÄRC TA KE H FRUC I THT Der The natürliche natural upgrade Mehrwert AGRANA Beteiligungs-AG German Corporate Conference 2018 UniCredit & Kepler Cheuvreux Frankfurt | 16 January 2018
Slide 2: Contents
CONTENTS 1 Introduction & Business overview 2 AGRANA share 3 (Financial) Highlights & Segment overview Q1-3 2017|18 4 Financial statements Q1-3 2017|18 5 Projects & Outlook 2017|18 FY AGRANA | GCC 2018 | 16 January 2018 2
Slide 3: Introduction & Business Overview
( F I N ANCIAL ) HI G HL I GHTS Q1 - 3 2 0 1 7 | 1 8 INTRODUCTION & BUSINESS OVERVIEW 3
Slide 4: Everyone knows Wiener Zucker
AGRANA GROUP EVERYONE KNOWS „WIENER ZUCKER“… AGRANA | GCC 2018 | 16 January 2018 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: At a glance
AGRANA PRODUCTS IN DAILY LIFE AT A GLANCE SUGAR STARCH FRUIT Sugar is sold  AGRANA produces starch and special  Fruit juice concentrates customers are  to consumers via the food trade and starch products fruit juice and beverage bottlers and  Starch is a complex carbohydrate fillers  to manufac
Slide 7: Revenue by product group (2016|17)
AGRANA PRODUCTS IN DAILY LIFE REVENUE BY PRODUCT GROUP (2016|17) SUGAR STARCH FRUIT € 671.9 m € 733.9 m € 1,155.5 m AGRANA | GCC 2018 | 16 January 2018 7
Slide 8: Q1-3 2017|18 overview
Q1-3 2017|18 OVERVIEW  Significant improvement in Group EBIT, with all segments going up  But EBIT in Q3 2017|18 (3 months) went down by 13.3% year-on-year Leading SUGAR  Revenue: € 2,010.6 m (up 2.2%; Q1-3 prior SUPPLIER year: € 1,967.5 m) in Central, Eastern & Southeastern Europe  EBIT: € 171.
Slide 9: Segmentation by segment
57 PRODUCTION SITES WORLDWIDE SEGMENTATION BY SEGMENT SUGAR STARCH FRUIT 7 sugar beet plants 5 starch plants 28 fruit preparation plants and 2 raw sugar refineries & Instantina plant (incl. 2 bioethanol plants) 14 fruit concentrate plants Czech Rep. Slovakia Austria Hungary* Romania Bosnia- Herzegov
Slide 10: Growth by strategy
GROWTH BY STRATEGY Customer- and market- oriented growth in CEE and SUGAR Synergies CENTRAL- & EASTERN EUROPE Use synergies between Southeastern Europe business segments to position the Group Organic growth, and adding STARCH optimally for the value by tailor-made products increasingly volatile EURO
Slide 11: Our history
AGRANA GROUP OUR HISTORY EXPANSION of the company‘s presence DEVELOPMENT in the area of fruit EXPANSION of the third business preparations in the Middle Of market position in segment, Fruit, with the East and Africa with plants Asia through the 50% ACQUISITION acquisition of the In the Hungarian cor
Slide 12: Solid economic growth since 1988
SINCE 1988 SOLID ECONOMIC GROWTH €m Revenue EBIT CAGR: Revenue: 7.0 % EBIT: 6.9 % 2,841.7 2,561.3 2,026.3 866.4 684.6 166.9 172.4 467.6 76.8 355.8 42.2 15.0 24.7 34.6 AGRANA | GCC 2018 | 16 January 2018 12
Slide 13: Shareholder structure
CURRENT STATUS SHAREHOLDER STRUCTURE TOTAL: 15,622,244 shares ~30% Rübenproduzenten Beteiligungs-GmbH ~50% (less one share -> AZ) ZBG ~70% Z&S Raiffeisen-Holding NÖ-Wien Zucker und Stärke 78.34% Holding AG ~10% ~50% Südzucker 2.74%1 18.92% FREE FLOAT 1 directly held by Südzucker AGRANA | GCC 2018 |
Slide 14: AGRANA share & capital increase
CY 2017 & Q1-3 2017|18 AGRANA SHARE & CAPITAL INCREASE 14
Slide 15: AGRANA share
Q1-3 2017|18 AGRANA SHARE AGRANA SHARE DATA Q1-3 Q1-3 2017|18 2016|17 Closing price (30 November) € 100.95 109.10 High € 115.80 111.00 Low € 92.32 78.80 Book value per share € 88.78 83.12 Number of shares 000 15,622.2 14,202.0 Performance (1/3/2017 – 30/11/2017): Closing market capitalisation €m 1,5
Slide 16: Capital increase in February 2017
POSITIVE IMPACT FOR THE FREE FLOAT CAPITAL INCREASE IN FEBRUARY 2017  Towards the end of the 2016|17 financial year AGRANA completed a capital increase from authorised capital, resulting in an expansion of free float  AGRANA intends to use the net proceeds from the issue of the new shares for purp
Slide 17: Change in shareholder structure
CAPITAL INCREASE 2017 CHANGE IN SHAREHOLDER STRUCTURE Shareholders BEFORE Shareholders AFTER 14,202,040 shares 15,622,244 shares 928,429; 428,429; 1,034,839; 2,955,043; 6.54% 2.74% 7.29% 18.92% 12,238,772; 12,238,772; 86.18% 78.34% Z&S Free float SZ (directly) Z&S Free float SZ (directly) Market cap
Slide 18: Steady dividend policy
€ 20 40 60 80 100 120 140 0 1991-07-10 1991-12-18 1992-06-09 1992-11-17 1993-05-05 1993-10-14 1994-03-30 1994-09-13 1995-02-27 1995-08-11 1996-01-29 1996-07-12 1996-12-20 1997-06-13 1997-11-20 AGRANA | GCC 2018 | 16 January 2018 1998-05-13 1998-11-03 1999-04-23 Dividend for 2016|17: € 4.00 per share
Slide 19: Segment overview
Q1 - 3 2 0 1 7 | 1 8 SEGMENT OVERVIEW 19
Slide 20: Revenue by segment
Q1-3 2017|18 VS PRIOR YEAR REVENUE BY SEGMENT €m 1,967.5 2,010.6 Q1-3 2017|18 +0.1% 884.0 44.0% 27.4% 883.1 Fruit 28.6% Starch 551.9 576.0 Sugar Q1-3 2016|17 GROUP 532.5 550.6 27.1% 44.9% Q1-3 2016|17 Q1-3 2017|18 28.0% AGRANA | GCC 2018 | 16 January 2018 20
Slide 21: EBIT by segment
Q1-3 2017|18 VS PRIOR YEAR EBIT BY SEGMENT Q1-3 2017|18 24.5% 7.6% €m 171.6 34.5% 6.7% 137.7 59.1 Fruit 56.6 41.0% Starch 12.2% Sugar 70.4 Q1-3 2016|17 GROUP 58.0 EBIT 16.8% margin 4.3% 42.1 23.1 Q1-3 2016|17 Q1-3 2017|18 41.1% 42.1% 7.0% 8.5% 6.4% 10.5% AGRANA | GCC 2018 | 16 January 2018 21
Slide 22: Investment overview
MOST IMPORTANT PROJECTS IN THE GROUP INVESTMENT OVERVIEW Q1-3 2017|18 €m 95.5 FRUIT • Various projects across all 42 production sites (including construction of the new, second fruit preparations plant 28.9 in China and a new carrot concentrate production line in 69.6 Hungary) 15.6 STARCH • Expansio
Slide 23: Sugar segment
SEGMENT SUGAR r Ae — eu ito most, itis bree 'segments..:\/ Ser topline!
Slide 24: EU sugar market: market structure since October 2017
EU SUGAR MARKET MARKET STRUCTURE SINCE OCTOBER 2017 October 2017 October 2018 SMY 2016|17 SMY 2017|18 SMY 2018|19 (October - September) (October - September) (October - September)  Quotas for sugar and isoglucose  Quota sugar: minimum beet  Elimination of sugar and isoglucose quotas price  No mi
Slide 25: AGRANA Sugar after the end of quotas
BENEFIT FROM THE STRONG MARKET POSITION IN CEE AND SEE AGRANA SUGAR AFTER 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 26: Sugar segment financial results Q1-3 2017|18
FINANCIAL RESULTS FOR Q1-3 2017|18 SUGAR SEGMENT REVENUE REVENUE slightly up at € 550.6 million €m  Sugar segment's revenue was 3.4% up compared to the 550.6 year-ago period 532.5  Positive effects came from an increase in sugar sales prices relative to the first nine months of the prior year, and
Slide 27: Sugar segment market environment
MARKET ENVIRONMENT IN Q1-3 2017|18 SUGAR SEGMENT  World sugar market  After two deficit years a production surplus is forecasted for SMY 2017|18  Sugar quotations at commodity exchanges follow a bearish trend mainly driven by a surplus in the world sugar balance linked to positive harvest outlook
Slide 28: Sugar quotation
RAW SUGAR & WHITE SUGAR SUGAR QUOTATION 1 January 2006 – 9 January 2018 (USD) 2017|18 FY 4-years-high: Raw sugar, 5/10/16: 524.9 USD/t White sugar, 28/9/16: 612.0 USD/t White sugar (LIFFE) 9 Jan. 2018: 386.8 USD/t = 322.5 EUR/t Raw sugar (ICE) 9 Jan. 2018: 322.8 USD/t = 269.1 EUR/t 1/1/2009 7-years-
Slide 29: World sugar production & consumption
WORLD SUGAR PRODUCTION & CONSUMPTION Million tonnes 200 191.4 184.2 181.5 184.2 180.7 178.7 180.3 178.4 180.2 180 174.3 175.8 174.2 171.7 165.2 168.0 162.3 162.6 158.4 160 140 120 100 79.3 80.4 80 74.3 71.5 73.2 64.2 67.9 56.2 57.5 60 40 20 0 2009|10 2010|11 2011|12 2012|13 2013|14 2014|15 2015|16 2
Slide 30: Monthly average prices
SUGAR IN THE EU MONTHLY AVERAGE PRICES (DECEMBER 2008 TO DECEMBER 2017; € PER TONNE) Recent decline in October 2017 -> first month of the new SMY 2017|18 (without quotas and minimum beet prices) QS - Min: 414 € per tonne (February, June and July 2015) QS - Max: 738 € per tonne (January 2013) Source:
Slide 32: 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 33: 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 34: Starch segment financial results Q1-3 2017|18
FINANCIAL RESULTS FOR Q1-3 2017|18 STARCH SEGMENT REVENUE REVENUE at € 576.0 m slightly above prior year €m  Growth of 4.4% compared to the previous year period 576.0 551.9  Key positive drivers were higher sales volumes of starches and saccharification products and higher bioethanol prices than i
Slide 35: Starch segment market environment
MARKET ENVIRONMENT IN Q1-3 2017|18 STARCH SEGMENT  Food starch segment was steady in terms of sales quantities; prices for native and modified starch products moved upward  Principal upside driver in non-food starches was the demand from the paper and corrugated board industry -> steady growth of
Slide 36: Commodity prices: wheat & corn
WHEAT & CORN (EURONEXT, PARIS) COMMODITY PRICES 1 January 2006 – 9 January 2018 (EUR) 2017|18 FY Wheat (Paris) 9 Jan. 2018: 161.0 EUR/t Corn (Paris) 9 Jan. 2018: 158.5 EUR/t AGRANA | GCC 2018 | 16 January 2018 36
Slide 37: Isoglucose market in the EU
ISOGLUCOSE MARKET IN THE EU As of 1st of October 2017 also the quotas for isoglucose were abolished, which means new growth potential for AGRANA. Before, AGRANA held 125,000 tonnes (->> HUNGRANA: 250,000 tonnes). Former isoglucose quota of the EU-28 ~< 5% of sugar consumption 35% 65% 720,000 tonnes
Slide 38: 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 (Hung
Slide 39: Development of ethanol prices
1 JANUARY 2008 – 8 JANUARY 2018 (EUR) DEVELOPMENT OF ETHANOL PRICES Average daily ethanol price in EUR/m³ (Ethanol T2 FOB Rdam EUR/cm Platts) 900 Average daily petrol price in EUR/m³ (PREM UNL-10ppm/FOB RDAM BARG Platts) 800 700 600 500 400 300 200 8 January 2018: Ethanol: 479.5 EUR/m3 100 Petrol: 3
Slide 40: Fruit segment
SEGMENT FRUIT r Ae — eu ito most, itis bree 'segments..:\/ Ser topline!
Slide 41: 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 42: 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 flavours and colours fruit preparations durability for an even fruitier taste and  Frozen (IQF or block)  Crystal sugar an intense colour  Aseptic  L
Slide 43: Fruit segment market position
FRUIT SEGMENT MARKET POSITION FRUIT PREPARATIONS Fruit preparations 28 FRUIT PREPARATION PLANTS & 14 FRUIT JUICE CONCENTRATE PLANTS  World Market Leader in Fruit preparations global market share > 30%  The non-European regions are overall showing good market growth rates, while the market’s sales
Slide 44: Fruit segment financial results Q1-3 2017|18
FINANCIAL RESULTS FOR Q1-3 2017|18 FRUIT SEGMENT REVENUE REVENUE stable at € 884.0 million €m  Fruit preparations: small increase in sales volumes and 883.1 +0.1% 884.0 somewhat higher selling prices added up to slight revenue growth  Fruit juice concentrates: revenue decreased as a result of lowe
Slide 45: Fruit segment market environment
MARKET ENVIRONMENT IN Q1-3 2017|18 FRUIT SEGMENT Fruit preparations  Global market for spoonable fruit yoghurts is expected to grow at about 1% in the 2017 calendar year(1)  Major markets such as Europe and North America are saturated  Expanding markets in the Middle East & Africa (growth of 5.1%
Slide 46: Consolidated financial statements
Q1-3 2017|18 CONSOLIDATED FINANCIAL STATEMENTS 46
Slide 47: Consolidated income statement
CONSOLIDATED INCOME STATEMENT Q1-3 Q1-3 Q3 Q3 €m (condensed) 2017|18 2016|17 2017|18 2016|17 Revenue 2,010.6 1,967.5 648.5 647.2 EBITDA1 213.8 183.9 64.2 69.7 Operating profit before except. items and results of equity-accounted JV 149.4 121.6 36.0 43.3 Share of results of equity-accounted JV 25.8 2
Slide 48: Analysis of net financial items
ANALYSIS OF NET FINANCIAL ITEMS Q1-3 Q1-3 €m 2017|18 2016|17 Change Net interest expense (6.0) (6.9) +13.0% Currency translation differences (2.7) (0.7) >-100% Other financial items (2.3) (5.7) +59.7% Total (11.0) (13.3) +17.3%  Net interest expense: lower amount of net debt + lower interest rates
Slide 49: Consolidated cash flow statement
CONSOLIDATED CASH FLOW STATEMENT Q1-3 Q1-3 €m (condensed) 2017|18 2016|17 Change Operating cash flow before changes in working capital 243.2 186.8 +30.2% Changes in working capital (6.7) (7.9) +15.2% Total of interest paid/received and tax paid (38.9) (25.8) -50.8% Net cash from operating activities
Slide 50: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET €m (condensed) 30 Nov. 2017 28 Feb. 2017 Change Non-current assets 1,173.9 1,135.3 +3.4% Current assets 1,279.3 1,346.1 -5.0% Total assets 2,453.2 2,481.4 -1.1% Equity 1,444.4 1,411.9 +2.3% Non-current liabilities 324.5 296.6 +9.4% Current liabilities 684.3 772.9 -11.5% To
Slide 51: Dividend payout approved at the AGM
DIVIDEND PAYOUT APPROVED AT THE AGM € 12 10.73 10.52 Dividend per share 10 Dividend for 2016|17: € 4.00 per share 8 7.40 7.13* 15,622,244 participating ordinary shares -> 5.98 5.82 6 5.70 distribution of € 62.5 m 5.08 4 Dividend payout ratio 2 3.60 3.60 3.60 3.60 4.00 4.00 56.1% 1.95 2.40 0 2009|10
Slide 52: Projects & Outlook 2017|18
2017|18 PROJECTS & OUTLOOK 52
Slide 53: Argentina & India
PROJECTS IN THE FRUIT SEGMENT ARGENTINA & INDIA  Fruit expansion and integration process in Argentina on track  Acquisition will expand the market presence in South America and raise global synergies in the Fruit segment  Further sales potential in the area of quick-service restaurants (such as f
Slide 54: New production site in China
PROJECTS IN THE FRUIT SEGMENT NEW PRODUCTION SITE IN CHINA  Ground-breaking ceremony for second Chinese fruit preparation plant near Shanghai  Start of production expected in November 2018  Total investment: € 22 million  Planned production capacity: 30,000 tonnes  China with 3.7 million tonnes
Slide 55: Corn starch capacity increase
PROJECTS IN THE STARCH SEGMENT CORN STARCH CAPACITY INCREASE  Expansion project in Aschach|Austria completed successfully  Expansion in the fields of wet corn grinding processes, waxy corn derivative production and spraying capacities for maltodextrin production  Total investment: € 80 million 
Slide 56: Wheat starch capacity increase
PROJECTS IN THE STARCH SEGMENT WHEAT STARCH CAPACITY INCREASE  Double the production capacity of the wheat starch factory in Pischelsdorf|Austria  Total investment: € 92 million  Intention to start construction work in early 2018 and to commission the new facility at the beginning of 2020  Impor
Slide 57: Outlook for 2017|18
AGRANA GROUP OUTLOOK FOR 2017|18 AGRANA Group Revenue 2017|18  EBIT Guidance confirmed EBIT 2017|18   For the full 2017|18 financial year, AGRANA expects Group revenue to rise slightly and EBIT to increase significantly  Total investment across the three business segments in the financial year,
Slide 58: Outlook for 2017|18 by segment
AGRANA SEGMENTS OUTLOOK FOR 2017|18  Sugar segment: in anticipation of stable sales volumes, AGRANA is projecting SUGAR revenue slightly below that of the prior year Revenue   Despite a continued challenging market environment in the 4th quarter of the current EBIT  FY -> significant increase i
Slide 59: Financial calendar 2018|19
2018|19 FINANCIAL CALENDAR 8 May 2018 Results for full year 2017|18 (annual results press conference) 26 June 2018 Record date for Annual General Meeting participation 6 July 2018 Annual General Meeting in respect of 2017|18 11 July 2018 Ex-dividend date 12 July 2018 Results for first quarter of 201
Slide 60: 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 — German Corporate Conference 2018 on 6ix

Agrana Beteiligungs-ag — German Corporate Conference 2018

Slide 1: German Corporate Conference 2018

Slide 2: Contents

Slide 3: Introduction & Business Overview

Slide 4: Everyone knows Wiener Zucker

Slide 5: We all consume AGRANA (products)

Slide 6: At a glance

Slide 7: Revenue by product group (2016|17)

Slide 8: Q1-3 2017|18 overview

Slide 9: Segmentation by segment

Slide 10: Growth by strategy

Slide 11: Our history

Slide 12: Solid economic growth since 1988

Slide 13: Shareholder structure

Slide 14: AGRANA share & capital increase

Slide 15: AGRANA share

Slide 16: Capital increase in February 2017

Slide 17: Change in shareholder structure

Slide 18: Steady dividend policy

Slide 19: Segment overview

Slide 20: Revenue by segment

Slide 21: EBIT by segment

Slide 22: Investment overview

Slide 23: Sugar segment

Slide 24: EU sugar market: market structure since October 2017

Slide 25: AGRANA Sugar after the end of quotas

Slide 26: Sugar segment financial results Q1-3 2017|18

Slide 27: Sugar segment market environment

Slide 28: Sugar quotation

Slide 29: World sugar production & consumption

Slide 30: Monthly average prices

Slide 31: Starch segment

Slide 32: Starch segment market position

Slide 33: Specialisation strategy

Slide 34: Starch segment financial results Q1-3 2017|18

Slide 35: Starch segment market environment

Slide 36: Commodity prices: wheat & corn

Slide 37: Isoglucose market in the EU

Slide 38: AGRANA bioethanol activities

Slide 39: Development of ethanol prices

Slide 40: Fruit segment

Slide 41: Fruit segment business model

Slide 42: Fruit preparation: what is it about?

Slide 43: Fruit segment market position

Slide 44: Fruit segment financial results Q1-3 2017|18

Slide 45: Fruit segment market environment

Slide 46: Consolidated financial statements

Slide 47: Consolidated income statement

Slide 48: Analysis of net financial items

Slide 49: Consolidated cash flow statement

Slide 50: Consolidated balance sheet

Slide 51: Dividend payout approved at the AGM

Slide 52: Projects & Outlook 2017|18

Slide 53: Argentina & India

Slide 54: New production site in China

Slide 55: Corn starch capacity increase

Slide 56: Wheat starch capacity increase

Slide 57: Outlook for 2017|18

Slide 58: Outlook for 2017|18 by segment

Slide 59: Financial calendar 2018|19

Slide 60: Disclaimer