AGRANA Beteiligungs-AG · VIE:AGR

AGRANA Beteiligungs-AG — FY2016|17 Earnings Presentation

39 slides from AGRANA Beteiligungs-AG's earnings presentation, May 12, 2017

  1. Slide 1: Annual Results for 2016|17

    ZU S UC GKAERR STTA ÄRK CE H FRUC I THT Der The natürliche natural upgrade Mehrwert AGRANA Beteiligungs-AG Annual Results for 2016|17 Presentation for investors and analysts Vienna, 12 May 2017

  2. Slide 2: Sugar, Fruit, Starch

    Sugar Fruit Starch AGRANA Annual Results for 2016|17, 12 May 2017 2

  3. Slide 3: 2016|17 Overview

    2016|17 OVERVIEW  All segments contributed to the significant improvement in operating profit  Successful increase in share capital and free float  Acquisition of Argentine fruit preparations Leading manufacturer Main Process S.A. SUGAR SUPPLIER in Central, Eastern &  Revenue: € 2,561.3 m (prior

  4. Slide 4: Revenue by Segment

    2016|17 VS PRIOR YEAR REVENUE BY SEGMENT €m 2,561.3 2016|17 2,477.6 26.2% 45.1% 1,083.4 1,155.5 Fruit 28.7% 721.6 733.9 Starch Sugar 2015|16 GROUP 672.6 -0,1% 671.9 27.2% 43.7% 2015|16 2016|17 29.1% AGRANA Annual Results for 2016|17, 12 May 2017 4

  5. Slide 5: EBIT by Segment

    2016|17 VS PRIOR YEAR EBIT BY SEGMENT 2016|17 Fruit GROUP 14.2% Starch EBIT 3.6% margin Sugar 41.6% 6.2% €m 172.4 44.2% 10.4% 129.0 71.8 2015|16 58.8 3.3% 76.2 0.6% 65.9 24.4 51.1% 4.3 9.1% 2015|16 2016|17 45.6% 5.4% AGRANA Annual Results for 2016|17, 12 May 2017 5

  6. Slide 6: Investment Overview

    MOST IMPORTANT PROJECTS IN THE GROUP INVESTMENT OVERVIEW €m 2016|17 116.0 114.7 SUGAR • General overhaul of the high-bay warehouse in Tulln, 33.8 Austria 41.7 • Renewal of the fresh water treatment plant in Tulln • Construction of the pelleted dried beet bagging station in Leopoldsdorf, Austria 28.2

  7. Slide 7: Sugar Segment

    SEGMENT SUGAR r Ae — eu ito most, itis bree 'segments..:\/ Ser topline!

  8. Slide 8: Sugar Segment: Market Environment in 2016|17

    MARKET ENVIRONMENT IN 2016|17 SUGAR SEGMENT  World sugar market  World market prices for sugar remained highly volatile in the 2016|17 financial year  By the end of the 2016|17 SMY, F.O. Licht forecasts a continuing significant deficit of 5.5 million tonnes in the global supply/demand balance (en

  9. Slide 9: Sugar Segment: Financial Results for 2016|17

    FINANCIAL RESULTS FOR 2016|17 SUGAR SEGMENT REVENUE REVENUE stable at € 671.9 m €m  Sugar sales quantities were lower (particularly with food -0.1% 672.6 671.9 retailers and in non-quota sugar sales to the chemical industry) but mitigated by positive market developments  Sugar prices went up  Rev

  10. Slide 10: World Sugar Production & Consumption

    WORLD SUGAR PRODUCTION & CONSUMPTION Million tonnes 200 184.2 181.5 180.8 174.3 175.8 178.7 174.8 179.6 177.6180.6 180 171.6 165.2 168.2 162.4 162.7 158.4 160 140 120 100 79.0 80.0 80 74.1 71.9 64.0 66.4 56.1 57.4 60 40 20 0 2009|10 2010|11 2011|12 2012|13 2013|14 2014|15 2015|16e* 2016|17e* Sugar p

  11. Slide 11: Sugar Quotation: Raw Sugar & White Sugar

    RAW SUGAR & WHITE SUGAR SUGAR QUOTATION 2016|17 FY 1 January 2006 – 10 May 2017 (USD) 4-years-high: Raw sugar, 5/10/16: 524.9 USD/t White sugar, 28/9/16: 612.0 USD/t White sugar (LIFFE) 10 May 2017: 453.5 USD/t = 415.8 EUR/t Raw sugar (ICE) 10 May 2017: 349.2 USD/t = 320.2 EUR/t 1/1/2009 7-years-low

  12. Slide 12: Sugar Monthly Average Prices

    SUGAR MONTHLY AVERAGE PRICES (APRIL 2008 TO APRIL 2017; € PER TONNE) QS - Min: 414 € per tonne (February, June and July 2015) QS - Max: 738 € per tonne (January 2013) Source: European Commission: Sugar Price Reporting (version as of April 2017) and SugarOnline (as of 4 May 2017) AGRANA Annual Result

  13. Slide 13: Starch Segment

    SEGMENT STARCH d A oy © most, it 1s bree segments cis Ser ote tal

  14. Slide 14: Starch Segment: Market Environment in 2016|17

    MARKET ENVIRONMENT IN 2016|17 STARCH SEGMENT  The starch market was characterised by very stable demand overall  Booming paper and corrugated board industry drives high demand for native corn and wheat starch  Sales volume growth in the international markets for construction starches  Sugar pric

  15. Slide 15: Starch Segment: Financial Results for 2016|17

    FINANCIAL RESULTS FOR 2016|17 STARCH SEGMENT REVENUE REVENUE at € 733.9 m slightly above prior year level €m  Through productivity increases, higher quantities of 721.6 733.9 starches (particularly from potatoes) and of ethanol were produced and sold  Average sales price of bioethanol eased from t

  16. Slide 16: Commodity Prices: Wheat & Corn

    WHEAT & CORN (EURONEXT, PARIS) COMMODITY PRICES 1 January 2006 – 11 May 2017 (EUR) 2016|17 FY Corn (Paris) 10 May 2017: 174.3 EUR/t Wheat (Paris) 11 May 2017: 169.8 EUR/t AGRANA Annual Results for 2016|17, 12 May 2017 16

  17. Slide 17: Development of Ethanol Prices

    1 JANUARY 2008 – 8 MAY 2017 (EUR) DEVELOPMENT OF ETHANOL PRICES 8 May March 2017: Ethanol: 576.0 EUR/m3 900 Petrol: 338.4 EUR/m3 800 700 600 500 500 EUR 400 300 200 100 0 Average daily ethanol price in EUR/m³ (Ethanol T2 FOB Rdam EUR/cm Platts) Average daily petrol price in EUR/m³ (PREM UNL-10ppm/FO

  18. Slide 18: Fruit Segment

    SEGMENT FRUIT r Ae — eu ito most, itis bree 'segments..:\/ Ser topline!

  19. Slide 19: Fruit Segment: Market Environment in 2016|17

    MARKET ENVIRONMENT IN 2016|17 FRUIT SEGMENT Fruit preparations  Markets outside Europe grew – especially Asia and the Middle East  In the EU and the USA, there is a trend towards increasing consumption of plain yoghurt (natural yoghurts), however per capita consumption remains high  Growth in the

  20. Slide 20: Fruit Segment: Financial Results for 2016|17

    FINANCIAL RESULTS FOR 2016|17 FRUIT SEGMENT REVENUE REVENUE moderately up to € 1.155.5 million €m  In the fruit preparations business, both sales quantities 1,083.4 1,155.5 and prices showed a positive trend  Counteracted by FX effects -> only slight revenue growth  In the fruit juice concentrate

  21. Slide 21: Consolidated Financial Statements 2016|17

    2016|17 CONSOLIDATED FINANCIAL STATEMENTS 21

  22. Slide 22: Consolidated Income Statement

    CONSOLIDATED INCOME STATEMENT €m (condensed) 2016|17 2015|16 Change Revenue 2,561.3 2,477.6 +3.4% EBITDA1 235.2 192.0 +22.5% Operating profit before except. items and results of equity-accounted JV 150.8 107.5 +40.3% Share of results of equity-accounted JV 30.6 24.5 +24.9% Exceptional items (9.0) (3

  23. Slide 23: Exceptional Items

    EXCEPTIONAL ITEMS Sugar segment (expense of € 9.0 million): • Tax liabilities of € 11.5 million in connection with a tax audit in Romania • Provision of € 1.5 million for a legal dispute in Romania • Release of a € 4.0 million provision for a settled legal dispute concerning land use rights in the C

  24. Slide 24: Analysis of Net Financial Items

    ANALYSIS OF NET FINANCIAL ITEMS €m 2016|17 2015|16 Change Net interest expense (10.2) (8.4) -21.4% Currency translation differences (1.2) (13.5) +91.1% Share of results of non-consolidated subsidiaries and outside companies 0.6 0.03 >+100% Other financial items (7.1) (2.6) >-100% Total (17.9) (24.5)

  25. Slide 25: Tax Rate

    TAX RATE €m 2016|17 2015|16 Change Profit before tax 154.5 104.4 +48.0% Income tax expense (36.6) (23.5) -55.7% Tax rate 23.7% 22.5% +1.2pp AGRANA Annual Results for 2016|17, 12 May 2017 25

  26. Slide 26: Consolidated Cash Flow Statement

    CONSOLIDATED CASH FLOW STATEMENT €m (condensed) 2016|17 2015|16 Change Operating cash flow before changes in working capital 258.0 225.9 +14.2% Changes in working capital 31.8 (73.7) >+100.0% Total of interest paid/received and tax paid (34.0) (50.3) +32.4% Net cash from operating activities 255.8 1

  27. Slide 27: Consolidated Balance Sheet

    CONSOLIDATED BALANCE SHEET €m (condensed) 28 Feb. 2017 29 Feb. 2016 Change Non-current assets 1,135.3 1,027.7 +10.5% Current assets 1,346.1 1,213.9 +10.9% Non-current assets held for sale 0.0 1.6 -100.0% Total assets 2,481.4 2,243.2 +10.6% Equity 1,411.9 1,200.1 +17.6% Non-current liabilities 296.6

  28. Slide 28: Dividend and Earnings per Share

    DIVIDEND AND EARNINGS PER SHARE € 12 10.73 10.52 Dividend per share 10 Dividend proposal* for 2016|17: € 4.00 per share 8 7.40 7.13** On 15,622,244 participating ordinary shares that would be a 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

  29. Slide 29: AGRANA Share & Capital Increase

    2016|17 AGRANA SHARE & CAPITAL INCREASE 29

  30. Slide 30: AGRANA Share Price Development

    2016|17 AGRANA SHARE PRICE DEVELOPMENT 1 Based on the new number of shares outstanding at the balance sheet date of 28 February 2017. AGRANA Annual Results for 2016|17, 12 May 2017 30

  31. Slide 31: Capital Increase in February 2017

    2016|17 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  About 1.42 million new shares as well as 500,000 existing AGRANA shares from the direct shareholding of Süd

  32. Slide 32: 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

  33. Slide 33: M&A Activities, Outlook 2017|18

    2016|17 M&A ACTIVITIES 2017|18 OUTLOOK 33

  34. Slide 34: M&A Activities (1)

    2016|17 M&A ACTIVITIES (1) Fruit expansion in Argentina • Purchase of the Argentine company Main Process S.A., Buenos Aires, Argentina, closed on 1 December 2016 • New subsidiary is included in the consolidated financial statements of AGRANA Beteiligungs-AG by full consolidation • Manufacturer of fr

  35. Slide 35: M&A Activities (2)

    2016|17 M&A ACTIVITIES (2) Fruit expansion in India • Acquisition of a site in the Indian state of Maharashtra as nucleus for future own production in connection with the local market entry strategies of AGRANA’s customers • Foundation of AGRANA Fruit India Private Limited, New Delhi, India • After

  36. Slide 36: Outlook for 2017|18: AGRANA Group

    AGRANA GROUP OUTLOOK FOR 2017|18 AGRANA Group Revenue 2017|18  EBIT 2017|18   AGRANA currently expects both Group revenue and EBIT to increase moderately for the 2017|18 financial year  Total investment across the three business segments, at approximately € 140 million, will significantly exceed

  37. Slide 37: Outlook for 2017|18: Segments

    AGRANA SEGMENTS OUTLOOK FOR 2017|18  Sugar segment: AGRANA expects revenue to be in line with the previous SUGAR year anticipating stable sales volumes Revenue   Improved margins and the cost reduction programme initiated in summer 2015 EBIT  -> significant increase in EBIT in 2017|18 compared

  38. Slide 38: Financial Calendar

    2017|18 FINANCIAL CALENDAR 7 July 2017 Annual General Meeting in respect of 2016|17 27 June 2017 Record date for Annual General Meeting participation 7 July 2017 Annual General Meeting in respect of 2016|17 12 July 2017 Ex-dividend date 13 July 2017 Results for first quarter of 2017|18 13 July 2017

  39. Slide 39: 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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