südzucker group capital market forum 2014 - startseite€¦ · 26/11/2014 · südzucker group...

Südzucker Group, page 1

Südzucker Group Capital Market Forum 2014 Mannheim, 26 November 2014

Thomas Kölbl (CFO)


FINANCIAL TRANSPARENCY

This presentation contains forward looking statements. The statements are based on current assumptions and estimates made by the executive board and information currently available to its members. The forward looking statements are not to be viewed as guarantees of the future developments and results presented therein. Future developments and results are in fact dependent on a variety of factors and are subject to various risks and imponderables. They are based on assumptions that could in fact prove to be invalid. The risk management report in the 2013/14 annual report on pages 99 to 110 presents an overview of the risks. We assume no obligation to update the forward-looking statements made in this presentation. This presentation includes percentage and number rounding. IFRS 11 application as of financial year 2013/14. Written and visual value statements are standardized as follows:

Disclaimer

± 1% stable

/ ± 4-10% moderate

/ >/< 10% significant

/ ± 1-4% slight



Südzucker Group at a glance

Revenues 7,533 bn € (2013/14) Global operating food group with

long-standing corporate history:

1837: Foundation of first sugar company

1926: Fusion to Süddeutsche Zucker-AG

Production facilities: ~ 100

Employees: ~ 18.200

Beneficiary of mega trends within food, animal feed and energy area

Stock exchange listing in Germany (MDAX)

Market capitalisation: ~ 2.6 bn €

Free float ~ 38%

Trading volume: ~ 1.8 mn shares/day

Special Products

(23%)

Sugar (52%)

Fruit (15%)

CropEnergies (10%)



Südzucker products share your everyday life …

Grocery / Ingredients Other appliances



Strong market position in all business areas

# 1 in Europe

# 1 globally for Isomalt and Oligofructose

Functional Food

# 1 worldwide

Fruit preparations

# 1 in Europe

Fruit juice concentrates

Bioethanol

Portion packs

# 1 in Europe Sugar

# 1 in Europe (private label)

Frozen pizza

One of the leading producers in Europe

Specialty starches and Isoglucose

One of the leading producers in

Europe



Business areas benefit long-term from megatrends…

200

400

600

800

mn t

Source: USDA

global animal feed production

11,000

51,000

91,000

131,000

171,000

211,000

2,000

4,000

6,000

8,000

tmn

Sources: United Nations, F.O. Licht

population growth worldwide

sugar consumption worldwide

,0

2,000

4,000

6,000

8,000

USD

per capita income

Source: ERS International Macroeconomic Data Set

emerging markets

worldwide

0

20

40

60

80

100

120

0

20

40

60

80

100

USD / barrelmn

barrel / day

Source: BP

oil consumption

crude oil price



… in an environment of volatility and cyclicity

0

100

200

300

400

500

600

700

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

€/t

White sugar price

50

100

150

200

250

300

350

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

€ / t

Wheat price

400

450

500

550

600

650

700

750

800

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

€ / m³

Ethanol price

50

100

150

200

250

300

350

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

€ / t

Maize price



Segment Sugar: Overview

Financial Year 2013/14:

Revenues: ~3.9 bn €

Employees: 8,050

Factories: 32



EU sugar policy past 2017(I)

Sugar and isoglucose quota

Quota sugar: Minimum beet price

Contractual obligation between industry and farmer

Exports limited to about 1.4 mn t p.a.

Elimination of sugar and isoglucose quota

No minimum beet price

Contractual obligation between industry and farmer

No export restrictions

New market framework 1 October 2017

EU sugar policy until 30 September 2017

Border Protection: unchanged

Import duty 419 €/t (white sugar) resp. 339 €/t (raw sugar) from non-preferential countries

Preferential agreements with LDC-/ACP- and Andean countries: unchanged



EU sugar policy past 2017(II)

Südzucker well positioned as largest producer with focus on best growing regions

Only limited effort needed to increase and extend current production level (with high entry barriers at the same time)

Utilization of current European logistic network to optimize sugar distribution and development of new markets

Investment program to exploit future market potential (e.g. starch)

Strengthening and extension of cooperations (e.g. ED&F Man, LDC/ACP producer)

Stronger competition, also from Isoglucose

Further EU free trade agreements with third party countries

Raw material security in increasingly more volatile market environment

Volatility in world market price and volume with even stronger influence on EU market

Challenges Opportunities



Segment Sugar: Europe

European market leader (24%)

Pan-European sales and logistics strategy

Sustainable production in highest beet-yield areas in Europe

Cost savings throughout entire value chain

Keeping and strengthening competitiveness

Exploiting growth opportunities outside Europe

Exports from EU

Acquisitions

France

Germany Belgium

Poland

Austria

Romania

Moldova

7

Hungary

Czech Republic

Slovakia

Bosnia-Hercegovina

Italy

Bulgaria

Greece

Spain

Portugal

Great Britain

Distribution activities

Beet sugar factories

Sugar refineries



75

100

125

150

175

200

mn t

Source: F.O. Licht

Traditional London-based agricultural trading company (Foundation 1783)

Revenues: 9 bn USD; > 3,400 employees in 60 countries

Sugar operations:

Approx. 9 mn t global sugar trading volume; second largest sugar trader with significant presence in

Central and South America, Far East, South East Asia and Africa

Participations in sugar production and refining capacities amongst others in Russia, the Ukraine, Mexico,

Chile and Venezuela

Sugar operations Molasses Multiple businesses

Coffee trading

Sugar consumption worldwide

Participation in ED&F Man offers a global footprint



Influence of low world market price via

imports

Still high EU quota sugar inventories through

EU commission measures (+1.2 mn t)

Tougher competition for contracts.

Decreasing share of annual contracts, higher

share of short term contracts and purchase

from spot markets

Significantly lower EU sugar pricing

Increasingly more difficult market

environment

Full effect in FY 2015/16

Expectation of mid-term price increase

Segment Sugar: current market environment EU

EU quota sugar inventories (mn t)

Price reporting EU-KOM (€/t)

500

550

600

650

700

750

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14

3.0

2.2

1.6

1.0 1.1

1.6

2.52.1

Sept.'07 Sept.'08 Sept.'09 Sept.'10 Sept.'11 Sept.'12 Sept.'13 Sept.'14e



Segment Special Products: Overview



Employees: 4,335

Factories: 21

Freiberger

BENEO

PortionPack

Starch

Revenue split by divisions



Segment Special Products:

Sales offices Subsidiaries

Production sites

Functional Food ingredients from natural raw materials (chicory root, beet sugar, rice)

Revenues: > 400 mn €

World market leader in core products

5 facilities in EU and Chile; global distribution

Numerous food-physiological benefits like:

Sugar-, fat- and calory-reduction

Dietary fibre enrichment, prebiotic

„Prolonged energy“

Lactose- and gluten free




Berlin

Osterweddingen

Westhoughton

Muggensturm

Oberhofen Production sites

Production of 2.5 mn packages daily

Frozen / chilled pizza

Frozen pasta

Frozen baguettes

Revenues: > 500 mn €

5 production sites in Germany, Austria, Great Britain

Private labels for nearly all leading food retailers in Europe

Exploit growth opportunities outside Europe (Distribution center USA)




Starch and specialty starch products for

Food industry

Paper- and paper processing industry

Textile industry

Construction industry

Pharma- and cosmetics industry

Revenues: ~ 700 mn €

Bioethanol production in Austria and Hungary

Commissioning of wheat-starch plant at bioethanol site Austria (Investment: 70 mn €)

New wheat starch factory at multi-site Zeitz (Investment: 125 mn €)

Production starch

Gmünd (A)

Pischelsdorf (A) Aschach (A)

Szabadegyhaza (HU)

Tandarei (RO)

Production bioethanol

Zeitz (DE, new plant)




Landgraaf (NL)

Barcelona

Prague

Production sites

Herentals (B)

Oud-Beijerland (NL)

Nuremberg

Telford

Krakow

Development, production and marketing of portion packs

Food (sugar, spreads, bakery products, confectionery etc.)

Nonfood (shower gel, shampoo, refreshing tissues etc.)

Revenues: ~ 150 mn €

Major markets

Gastronomy / large consumers (hotels, caterers, restaurants, cafeterias, airlines)

Industry

Retailers

Advertising material & promotion



Segment CropEnergies: Overview


Revenues: ~720 mn €

Employees: 430

Factories: 4



Segment CropEnergies (I) Megatrend: Renewable Energies

EU-Target 2020 traffic: 10% from renewable

energy sources

Reduction of greenhouse gas emissions

Rising independency from oil imports

Sustainable raw materials: Grain and

sugar syrups from European farming

Refining of all raw materials for food,

tank and feeder

Carbohydrates into bioethanol Motor fuels (E5, E10, E85 for Otto motor engines)

Technical appliances (Perfums, cleaning)

Proteins into food and animal feed

Gluten (Proteinproduct for food and animal feed)

ProtiGrain® (high value protein animal feed)

ProtiWanze® (liquid protein animal feed )

Liquefaction of biogenic CO2 (e.g. for the beverage industry)

20



400

450

500

550

600

650

700

Nov-12 Mar-13 Jul-13 Nov-13 Mar-14 Jul-14 Nov-14

Segment CropEnergies: (II)

Quotation: Ethanol €/m3 Currently challenging market environment:

Only moderate decreasing grain prices

Decrease in fuel demand

Strong ethanol price decrease since autumn 2013

Acquisition Ensus, England:

Boost of nominal capacity by 400,000 m3 to ~1.2 mn m3 p.a. bioethanol

Capacity enlargement of food and animal feed production to ~1 mn t p.a.

Efficiency gains and increase in purchase and sales flexibility

Neutral alcohol plant at multi-site Zeitz

Commissioning middle of 2015

Production facility Tank storage Trading

Houston

São Paulo

Duisburg Rotterdam

Zeitz Wanze

Loon-Plage

Wilton

Santiago de Chile



Segment Fruit: Overview

Production sites



Employees: 5,371

Factories: 40



Segment Fruit

Refining of agri-raw-materials into

highvalue ingredients for food processors,

especially in beverage-, dairy-, bakery-

and ice cream industry

40 production sites on 5 continents

Global market leader with fruit preparations

and largest producer of fruit juice

concentrates in Europe

Synergies with other group businesses

Commissioning of fourth fruit preparation

plant USA

Emerging markets Canada, USA (northeast)

Investment: 30 mn €, capacity 45,000 t p.a.



Outlook 2014/15

Operating Profit 2013/14 2014/15e

Sugar

Revenues 2013/14 2014/15e

Special Products

CropEnergies

Fruit

Group 7.5 bn € ~ 7.0 bn € 622 mn € ~ 200 mn €

3.9 bn €

1.7 bn €

720 mn €

1.2 bn €

438 mn €

85 mn €

35 mn €

65 mn €

-20 to 0 mn €

>750 mn €

~30 to 70 mn €



Mid term Outlook – Group Operating Profit

~ 200 mn €

2014/15

~ 550 mn €

Commissioning USA Volume growth parallel

to market growth

Fruit

Recovery wm price Market equilibrium Cost savings

Sugar

Utilization Pischelsdorf Launch Zeitz Biomass boiler Chile

Special Products

Ensus: Exploitation and efficiency gains

Normalisation ethanol pricing

Crop Energies

Mid term

Megatrends intact (population growth, increase in per-capita income ...)



Südzucker: Value-driven growth…

Leading market positions

in all business areas

Attractive dividend

yield

High cash flow

generation

Strong balance sheet and financial

ratios

Südzucker sustainably will

benefit from megatrends



Thank you for your attention !

südzucker group capital market forum 2014 - startseite€¦ · 26/11/2014 · südzucker group...

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