Agrana Beteiligungs-ag · VIE:AGR
Agrana Beteiligungs-ag — Non-Deal Roadshow (October 2024)
76 slides from Agrana Beteiligungs-ag's roadshow presentation, Oct 16, 2024
Slide 1: US Roadshow
THE NATURAL UPGRADE US Roadshow 16 – 17 October 2024 AGRANA Beteiligungs-AG AGRANA Report on the 1st half of 2024|25: www.agrana.com/en/ir/publications AGRANA | US Roadshow | 16–17 October 2024 1
Slide 2: Contents
Contents 1 Introduction & business overview 2 Strategy “Next Level“ – work in progress 3 FOCUS on ESG 4 Segment overview: Fruit, Starch and Sugar 5 Ukraine | Russia 6 Financials H1 2024|25 7 Outlook 2024|25 AGRANA | US Roadshow | 16–17 October 2024 2
Slide 3: Introduction & business overview
THE NATURAL UPGRADE Introduction & business overview AGRANA Group AGRANA | US Roadshow | 16–17 October 2024 3
Slide 4: Everyone knows Wiener Zucker
Everyone knows “Wiener Zucker“ AGRANA | US Roadshow | 16–17 October 2024 4
Slide 5: We all consume AGRANA (products)
Strategic positioning B2B We all consume AGRANA (products) At the beginning AGRANA refines AGRANA supplies We all consume AGRANA there is always agricultural raw the Big Names... every day without agriculture… materials... noticing it... confectione r y, bevera ge, fermenta tion industries , f
Slide 6: At a glance
AGRANA products in daily life At a glance FRUIT STARCH SUGAR • Fruit juice concentrates • AGRANA produces starch and Sugar is sold to customers are fruit juice and special starch products • consumers via the food trade beverage bottlers and fillers • Starch is a complex carbohydrate and • Fruit prep
Slide 7: Segmentation by segment
55 Production sites worldwide Segmentation by segment FRUIT STARCH SUGAR 7 sugar beet plants 26 fruit preparation plants and 5 starch plants 2 raw sugar refineries & 14 fruit concentrate plants (incl. 2 bioethanol plants) 1 Instantina plant Czech Rep. Slovakia Austria Hungary* Romania* Bosnia- Herze
Slide 8: Agricultural raw materials processed: 9.0 million tonnes
2023|24 financial year Agricultural raw materials processed: 9.0 million tonnes 2% 9% Beet 5.7 million tonnes Raw sugar 0.3 million tonnes 22% Grain 2.0 million tonnes 3 Mio. t 6 Mio. t Potato 0.2 million tonnes 64% Fruits 0.8 million tonnes 3% AGRANA | US Roadshow | 16–17 October 2024 8
Slide 9: FOCUS on Food
Revenue by product group (2023|24) FOCUS on Food FRUIT STARCH SUGAR € 1,566.9 m € 1,148.7 m € 1,071.3 m AGRANA | US Roadshow | 16–17 October 2024 9
Slide 10: Our History
AGRANA Group ACQUISITION of the American Our History organic distribution company EXPANSION Marroquin EXPANSION Of market position in Asia Organic of the company‘s through the acquisition of the International presence in the area Indian fruit processing plant of fruit preparations SAIKRUPA Fruit Pro
Slide 11: Shareholder structure
Current status Shareholder structure ~30% Rübenproduzenten Beteiligungs-GmbH ~50% ZBG ~70% Raiffeisen-Holding AGRANA NÖ-Wien Zucker, Stärke und Frucht Holding AG ~78.4% ~10% ~50% Südzucker ~2.7%1 Total: 62,488,976 shares ~18.9% 1 directly held by Südzucker AGRANA | US Roadshow | 16–17 October 2024 1
Slide 12: Strategy Next Level (work in progress)
THE NATURAL UPGRADE Strategy “Next Level“ (work in progress) AGRANA | US Roadshow | 16–17 October 2024 12
Slide 13: Management Board since 1 March 2024
AGRANA Group Management Board since 1 March 2024 CEO Stephan Büttner CTO Norbert Harringer CAO Stephan Meeder • Finance (CFO) • Production & Investment • Internal Audit • Compliance • Quality Management • Corporate Secretariat (line • Raw Materials authority) • Research and Development • Human Resou
Slide 14: Next Level – work in progress
Update as of 10 October 2024 (half-year results publication) “Next Level“ – work in progress ▪ We are continuing to work hard on our “Next Level” strategy ▪ We have already taken the first steps and, among other things, launched a comprehensive cost reduction program at both the holding and segment
Slide 15: Current trends with high relevance to AGRANA
Current trends with high relevance to AGRANA Changes in consumer behavior and nutrition trends Market and Geopolitical shifts and crises surroundings Climate change and sustainability regulations High cyclicality of raw material supply Volatility in procurement Energy crisis / energy revolution AGRA
Slide 16: Challenges necessitate a clear Group strategy
Challenges necessitate a clear Group strategy Increase in turnover mainly due to rising prices Concentration in (Central) Europe with low market growth Growth Customers from the food and retail industries with low growth rates High commodity share*: Susceptibility to agricultural cycles and market d
Slide 17: AGRANA can build on a number of strengths
AGRANA can build on a number of strengths Customer Access to raw First Solution Resilience portfolio materials transformation competence Comprehensive Access to high- Expertise in Innovation and co- Risk diversification global and regional quality and processing of very creation of “value- through p
Slide 18: AGRANA has three segments with own administration
AGRANA has three segments with own administration AGRANA Holding Admin Starch Sugar Fruit Admin Admin Admin Admin Commodities Commodities Commodities ▪ Starch ▪ Sugar ▪ Fruit juice Solutions ▪ Ethanol concentrates ▪ Fruit-Prep Specialties Specialties Specialties ▪ Sauces ▪ Technical starches ▪ Betai
Slide 19: Commodities division with core competencies in raw materials management
Commodities division with core competencies in raw materials management and in the first transformation Agricultural Commodities and Specialties Target Operating Model Raw materials Core competencies along the value chain Products / Specialties Potatoes First Second Commodity products: Raw materials
Slide 20: Customer-centric solutions division with a focus on product development
Customer-centric solutions division with a focus on product development Food and beverage solutions target operating model Customer groups Core competencies along the value chain Solutions First Second Customer Fruit prep (dairy/non-dairy), Food Raw materials transformation/ transformation/ consulti
Slide 21: AGRANA – Next Level
AGRANA – Next Level Creating value with nature Strategic Holding Strategic development and control vertical synergies Innovation impulses Raw material-centered/ Customer-centered processing expertise Agricultural Food and /formulation expertise Commodities Beverage Regional footprint – Global footpr
Slide 22: AGRANA Next Level – optimal alignment for profitable growth
AGRANA “Next Level” – optimal alignment for profitable growth; long-term transformation required Today AGRANA – Next Level Challenges Trends + Strategic Strengths Holding Agricultural Food and Commodities and Beverage Specialties Solutions AGRANA AGRANA Holding Holding Regional Global Admin Starch S
Slide 23: Implementation priorities for the current business year
Implementation priorities for the current business year Initiatives (selection) Pursuit of divisional strategies – profitable growth Divisions Realization of portfolio potential Fruit Starch / Sugar synergy potential (especially cost optimization) Design of the strategic holding structure (cost Hold
Slide 24: FOCUS on ESG
THE NATURAL UPGRADE FOCUS on ESG AGRANA-Climate Strategy AGRANA | US Roadshow | 16–17 October 2024 24
Slide 25: AGRANA's understanding of sustainability
AGRANA‘s understandig of sustainability At AGRANA, we… • utilise almost 100% of the agricultural raw materials employed, and use low- Ecology emission technologies in industrial processing to reduce or avoid impacts on the environment, • respect all stakeholders and the communities where we operate,
Slide 26: AGRANA's material topics along the value chain
AGRANA‘s material topics along the value chain RAW MATERIAL ECO-EFFICIENCY OUR EMPLOYEES PRODUCT COMPLIANCE PROCUREMENT OF OUR RESPONSIBILITY PRODUCTION Environmental and social criteria in the Product Labour practices and Compliance and business sourcing of Environmental and responsibility and cond
Slide 27: AGRANA climate strategy
AGRANA Sustainabilty AGRANA climate strategy Targets: 1) Net-zero emissions (scope 1+2) by 2040 2) Net-zero emissions (scope 3) by 2050 at the latest ▪ Verification of emission reduction targets by 2030 through recognised Science Based Targets Initiative (SBTi) in September 2023 Near-term targets by
Slide 28: SBTi emission reduction targets
AGRANA climate strategy SCIENCE BASED TARGETS initiative (SBTi) AGRANA emission reduction targets by 2030 successfully verified by SBTi in September 2023! SCOPE 1 SCOPE 2 SCOPE 3 NEAR- 2030 (from 2019|20 base year) TERM 2030 50% abs. reduction approx. 34% abs. reduction of GHG emissions LONG-TERM Ne
Slide 29: Focus Area @ AGRANA – Scope 1+2
Scope 1+2 Focus Area @ AGRANA • Long-term commitment by 2040 (not SBTi validated) − Switch to 100% renewable energy (scope 1+2) and net-zero emissions • Near-term target by 2030|31 (SBTi validated) on track ▪ - 50 % of emissions from 2019|20 base year of 928.000 t CO 2 through the following measures
Slide 30: Major emission reduction projects per division 2024 to 2030|31
ESG Outlook Major emission reduction projects per division 2024 to 2030|31 ▪ In total, > 400 emission reduction projects were modelled until 2040 to achieve net-zero scope 1+2 emissions. ▪ Concrete projects, which have already been included in the medium-term planning up to 2027 and beyond up to 203
Slide 31: Segment overview
THE NATURAL UPGRADE Segment overview AGRANA | US Roadshow | 16–17 October 2024 31
Slide 32: Fruit segment
THE NATURAL UPGRADE Fruit segment AGRANA | US Roadshow | 16–17 October 2024 32
Slide 33: 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 (several thousand recipes area of the fruits (water worldwide) content and quality of the • Customers: dairy, b
Slide 34: Fruit preparation – what is it about?
Fruit segment Fruit preparation – what is it about? FRUIT FRUIT SUGAR PREPARATIONS + = … most important … sweetens and … optional flavors ingredient of fruit supports taste and and colours for an preparations durability even fruitier taste • Frozen (IQF or • Crystal sugar and an intense block) • Liq
Slide 35: 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 ~40% • Most emerging markets are showing good market growth rates, while the market’s sales volumes of f
Slide 36: Market environment – Highlights
H1 2024|25 Market environment – Highlights Fruit segment: • Fruit preparations: market situation remains volatile as a result of high inflation in many places, lower consumer spending and elevated geopolitical, climatic and supply chain risks • Fruit juice concentrate: level of customer call-offs fo
Slide 37: Raw materials and production – Highlights
H1 2024|25 Raw materials and production – Highlights Fruit segment: ▪ Fruit preparations: in the H1 2024|25, about 185,000 tonnes of raw materials were purchased; harvest of strawberry (principal fruit) was completed in July in all relevant procurement markets; average purchase prices were above the
Slide 38: Starch segment
THE NATURAL UPGRADE Starch segment AGRANA | US Roadshow | 16–17 October 2024 38
Slide 39: 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 40: Specialisation strategy
Starch segment Specialisation strategy FOOD • Growth in products from VALUE END PRODUCT special raw materials (market leadership) • Growth in starch Textile industry, construction derivatives for fruit DERIVATIVES, ETHERS AND ESTERS industry, cosmetic industry preparations • Growth in „high care“- F
Slide 41: AGRANA bioethanol activities
Starch segment AGRANA bioethanol activities PISCHELSDORF (Austria) • Total investment: € 125 million • Capacity: up to 240,000 m³ (= 190,000 tonnes) • Production start: June 2008 • Raw material base: wheat, corn and sugar beet thick juice* • Raw material base: wheat, corn, B+C starch slurry HUNGRANA
Slide 42: E10 available in Austria since end of March 2023
Starch segment E10 • AVAILABLE IN AUSTRIA SINCE THE END OF MARCH 2023 • AGRANA has been producing enough bioethanol for a 10% blend (E10) in Austria since 2008 • Before E10 introduction, 40% of production used for E5 blending; 60% exported, resulting in a loss of nearly 200,000 t GHG savings for Aus
Slide 43: Market environment – Highlights
H1 2024|25 Market environment – Highlights Starch segment: • From the beginning of this FY, market demand was firmer again; however, markets relevant for AGRANA exhibit high competitive pressure that is directly felt in declining sales prices • In the ethanol business, sustained high import pressure
Slide 44: Ethanol and petrol prices
Ethanol and petrol prices FY 2024|25 1 January 2008 – 8 October 2024 Ethanol (Platts T2 spec.) | Fuel (PU-10PP-ARA) (EUR per m 3 ) H1 2023|24 H1 2024|25 8 Oct 2024 Ethanol avg. price: ~794 EUR/m3 ~697 EUR/m3 655.00 EUR/m3 AGRANA | US Roadshow | 16–17 October 2024 44
Slide 45: Raw materials and production – Highlights
H1 2024|25 Raw materials and production – Highlights Starch segment: ▪ Wheat prices on the Euronext Paris commodity derivative exchange fell considerably with the 2024 harvest; corn quotations followed this trend ▪ In the last third of August 2024, potato starch factory in Gmünd, Austria, began rece
Slide 46: Commodity prices
Wheat & Corn (Euronext, Paris) Commodity prices 1 January 2006 – 8 October 2024 FY 2024|25 Wheat | Corn (EUR per tonne) Q2 Closing / 30 Aug 2024 Wheat 205.8 EUR/t Corn 199.3 EUR/t Whea t (Pa ris) 8 Oct 2024: 229.8 E UR /t Corn (Pa ris) 8 Oct 2024: 214.0 E UR /t AGRANA | US Roadshow | 16–17 October 2
Slide 47: Sugar segment
THE NATURAL UPGRADE Sugar segment AGRANA | US Roadshow | 16–17 October 2024 47
Slide 48: 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 7 Sugar Plants and region” (AGRANA is located in these main deficit 2 Raw Sugar Refineries areas) • Complexity in logistics and costs from Western Europe are so
Slide 49: Market environment – Highlights
H1 2024|25 Market environment – Highlights Sugar segment: • Significant drop in sugar prices during the last months, triggered by good harvest expectations in the EU and high import volumes from Ukraine • Due to the weak general market environment situation will remain challenging in the coming mont
Slide 50: EU vs sugar world market prices
Sugar price reporting EU vs sugar world market prices € Source: Sugar Market situation; European Commission, published on 27 September 2024 AGRANA | US Roadshow | 16–17 October 2024 50
Slide 51: Raw materials and production – Highlights
H1 2024|25 Raw materials and production – Highlights Sugar segment: ▪ Area contracted by AGRANA with its growers for sugar beet production in the 2024 crop year was about 99,000 hectares (2023 crop year: around 86,000 hectares) ▪ Austria (AGRANA's most important sugar production country): average yi
Slide 52: War in Ukraine
THE NATURAL UPGRADE War in Ukraine AGRANA | US Roadshow | 16–17 October 2024 52
Slide 53: War in Ukraine
AGRANA Group War in Ukraine • AGRANA in Ukraine since 1997 / 778 employees* • Two sites in Vinnitsa (300 km SW of Kiev) for production of fruit preparations and fruit juice concentrates • Agricultural production plant in Luka • Product sales largely in Ukraine Current situation • Current situation o
Slide 54: AGRANA Fruit Russia
AGRANA Group AGRANA Fruit Russia • AGRANA's presence in Russia is exclusively in the Fruit segment • Production of fruit preparations in Serpuchov, about 100 km south of Moscow • 292 employees* • Sales of products in Russia and other CIS countries • Task as supplier of essential staple foods and obl
Slide 55: Financial exposure in Ukraine and Russia
War in Ukraine Financial exposure in Ukraine and Russia €000 Revenue % of Total % of FTEs % of Group assets Group Group Ukraine 2023|24 32,983 0.9% 30,443 1.1% 737 8.3% Russia 2023|24 83,834 2.2% 57,306 2.0% 304 3.4% Ukraine & Russia 2023|24 116,817 3.1% 87,749 3.0% 1,041 11.7% Ukraine 2022|23 24,65
Slide 56: Financials H1 2024|25
THE NATURAL UPGRADE Financials H1 2024|25 AGRANA | US Roadshow | 16–17 October 2024 56
Slide 57: Overview - Highlights
H1 2024|25 Overview - Highlights ▪ As projected, Q2 2024|25 was significantly weaker than in the previous year ▪ While the fruit segment delivered a very strong performance in the first six months, the earnings trend in the starch and sugar segments was weighed down heavily by general market develop
Slide 58: Overview – Key figures
H1 2024|25 Overview – Key figures Revenue: € 1,861.7 m EBITDA 1 : € 107.6 m -5.0% -34.3% (H1 2023|24: € 1,959.5 m) (H1 2023|24: € 163.7 m) Operating profit 2 : € 55.3 m EBIT: € 56.6 m -50.9% -49.0% (H1 2023|24: € 112.7 m) (H1 2023|24: € 110.9 m) Earnings per share: € 0.35 -63.9% (H1 2023|24: € 0.97)
Slide 59: Revenue by segment
H1 2024|25 vs H1 prior year Revenue by segment Fruit segment: Group ▪ Fruit preparations: revenue rose for volume €m reasons; increase in fruit juice concentrate 1,959.5 1,861.7 revenue: driven by volume and prices Starch segment: 791.1 ▪ Owing to the decline in raw material and energy 824.5 prices,
Slide 60: EBIT by segment
H1 2024|25 vs H1 prior year EBIT by segment Fruit segment: EBIT margin ▪ Fruit preparations: EBIT was significantly above the year - €m ago level; improvement was attributable especially to a H1 2023|24 positive business performance in the Europe region EBIT margin (including Ukraine), in Mexico and
Slide 61: Consolidated income statement
Consolidated income statement H1 H1 Q2 Q2 €m (condensed) 2024|25 2023|24 2024|25 2023|24 Revenue 1,861.7 1,959.5 917.4 993.4 EBITDA 1 107.6 163.7 51.8 73.1 Operating profit before except. items and results of equity-accounted JV 55.3 112.7 25.3 47.8 Share of results of equity-accounted JV 3.2 (2.2)
Slide 62: Energy costs and mix
Energy costs and mix Energy mix of the group in Energy costs of the group FY 2023|24 €m 357.0 41.9 300.1 47.7 214.6 165.5 31.4 139.0 116.2 87.7 23.2 149.6 58.6 113.4 95.5 34.4 2020|21 2021|22 2022|23 2023|24 Fruit Starch Sugar AGRANA | US Roadshow | 16–17 October 2024 62
Slide 63: Net financial items | Tax Rate
Net financial items | Tax Rate €m H1 2024|25 H1 2023|24 Change Net interest expense (14.1) (15.0) +6.0% Currency translation differences (4.6) (7.5) +38.7% Other financial items (0.7) (1.8) +61.1% Total (19.4) (24.3) +20.2% €m H1 2024|25 H1 2023|24 Change Profit before tax 37.2 86.6 -57.0% Income ta
Slide 64: Consolidated cashflow statement
Consolidated cashflow statement H1 H1 €m (condensed) 2024|25 2023|24 Change Operating cash flow before changes in working capital 125.8 180.1 -30.1% Changes in working capital 11.0 (142.7) +107.7% Total in interest paid/received and tax paid (18.5) (25.7) +28.0% Net cash from operating activities 11
Slide 65: Consolidated balance sheet
Consolidated balance sheet €m (condensed) 31 Aug 2024 29 Feb 2024 Change Non-current assets 1,034.7 1,031.2 +0.3% Current assets 1,600.2 1,858.2 -13.9% Total assets 2,634.9 2,889.4 -8.8% Total equity and liabilities 1,220.5 1,248.4 -2.2% Non-current liabilities 621.2 628.7 -1.2% Current liabilities
Slide 66: Financial structure
Financial structure Due within Due after more €m 29 Feb 2024 1 year than 1 year 28 Feb 2023 Borrowings 742.4 218.8 523.6 820.6 Securities and cash (equivalents) (106.3) (135.7) Net debt 636.1 684.9 Credit lines 1,174.8 420.8 754.0 1,152.4 Average effective interest rate 3.92% 2.78% AGRANA | US Roads
Slide 67: Dividend and EPS development
AGRANA Group Dividend and EPS development 3 Dividend for 2023|24: 2.63 € 0.90 per share 3 2.24 EPS adj. 1.78 2 1.85 1.69 1.46 EPS adj. 2 1.43 EPS adj. 1.52 0.96 0.96 1.00 1.04 1 0.77 1.13 0.90 0.90 0.90 0.90 0.90 0.90 1.00 1.00 0.75 0.85 1 0.45 0.41 0.25 0 (0.20) -1 2012|13 2013|14 2014|15 2015|16 2
Slide 68: Financial Outlook 2024|25
THE NATURAL UPGRADE Financial Outlook 2024|25 AGRANA | US Roadshow | 16–17 October 2024 68
Slide 69: Outlook for 2024|25
AGRANA Group Outlook for 2024|25 EBIT 2024|25 Revenue 2024|25 ▪ At Group level for the full 2024|25 financial year, AGRANA expects a significant reduction in EBIT ▪ Group revenue is projected to show a moderate decrease Foreca st uncerta i n t y a nd a ssumption s The war in Ukraine underway si
Slide 70: Outlook for 2024|25 by segment
AGRANA Segments Outlook for 2024|25 FRUIT STARCH Revenue Slight increase* Revenue Moderate reduction* EBIT Significant increase* EBIT Significant reduction* SUGAR Revenue Significant reduction* EBIT Very significant reduction* * The se qua ntita ti ve te rms a s used in this Outlook
Slide 71: Outlook for third quarter of 2024|25
AGRANA Group Outlook for third quarter of 2024|25 Q3 2023|24 (3 months) EBIT: € 38.5 million Q3 2024|25 EBIT for the third quarter of this financial year is expected to be EBIT very significantly below the year- earlier figure AGRANA | US Roadshow | 16–17 October 2024 71
Slide 72: Investment plan
Outlook for 2024|2025 Investment plan • Total investment across the three business Investment split 2024|25 segments in the 2024|25 financial year, at (total ~ € 120 million) approximately € 120 million • Is expected to be moderately below the 2023|24 25% value and thus only in line with the budgete
Slide 73: Capex evolution
Investment over the last 15 years Capex evolution GROUP Fruit Starch Sugar Deprec. €m 183.8 149.8 149.7 140.9 130.0 127.3 116.0 114.7 ~120 97.1 102.9 91.2 82.4 72.3 55.9 AGRANA | US Roadshow | 16–17 October 2024 73
Slide 74: Financial calendar
FY 2024|25 and FY 2025|26 Financial calendar 14 January 2025 14 July 2025 Results for first three quarters of 2024|25 Dividend payment date 9 May 2025 9 October 2025 Results for full year 2024|25 (annual results press conference) Results for first half of 2025|26 24 June 2025 13 January 2026 Record
Slide 75: Contacts
Contacts Investor Relations Mr. Hannes Haider Phone: +43-1-211 37-12905 Email: investor.relations@agrana.com AGRANA Beteiligungs-AG Friedrich-Wilhelm-Raiffeisen-Platz 1 1020 Vienna, Austria www.agrana.com/en AGRANA Investor Relations: www.agrana.com/en/ir AGRANA | US Roadshow | 16–17 October 2024 75
Slide 76: Disclaimer
Disclaimer This presenta tion is be ing provide d to you solely for your informa tion a nd ma y not be reproduced or further distributed to a n y other person or published, in whole or in pa rt, for a ny purpose. This presenta tio n comprises the written ma teria ls/slides for a presenta tion concer
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