Südzucker GroupThomas Kölbl (CFO)
Investor Roadshow October/November 2010
FINANCIAL TRANSPARENCY
2Südzucker Group, page
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 14
CropEnergies page 23
Fruit page 28
3. Financial Highlights H1 2010/11 page 32
4. Outlook 2010/11 page 43
5. Appendix
Annual Financial Statement 2009/10 page 46
Long-term development and key figures page 63
Additional information page 70
FINANCIAL TRANSPARENCY
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Südzucker Group at a glanceGroup revenues 5.7 bn € *
Global food company with headquarters and stock quotation in Germany (MDAX, MSCI; Market Cap ~ 3 bn €)
Approx. 70 % of revenues generated outside Germany
Defensive, non-cyclical business model
Development of new growth markets (e.g. Russia, China, Brazil)
Early market entry into growing business platforms with BENEO (Functional Food) and Fruit Preparations
Long-term growth option Bioethanol triggered
Special Products
(25%)
Sugar(55%)
Fruit(14%)
Starch**(36%)
Freiberger(32%)
BENEO(24%)
PortionPack(8%)
CropEnergies (6%)
* FY 2009/10** includes AGRANA bioethanol activities
FINANCIAL TRANSPARENCY
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Südzucker Group: Market Position and Strategic Objectives
Segment/Division Market Position Strategy / Main Drivers
Sugar
BENEOStarchFreiberger
FruitPreparations
Fruit JuiceConcentrates
CropEnergies
Take full benefit of global increase in demand for healthy food and upmarket products e.g. yoghurt drinks, wellness products, convenience food
Usage of integrated platform to raise synergiesin combined global sourcing and distribution
#1 in Europe
Taking advantage of transition period within the sugar industry via … … further enhancement of leading market
position in Europe; especially in deficit markets … internal efficiency gains
#1 worldwide
#1 in Europe
#1 worldwide in Isomalt and Oligofructose
#1 in Europe in frozen pizza
One of the leading players in Europe
Leverage strength of core products into productinnovations
External growth only via small add-ons feasible
Full exploitation of implemented capacity build-up
FINANCIAL TRANSPARENCY
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>450 mn €
Back on track after successful transformation
74%
26%
30%
70%
Sugar Special Products FruitCropEnergies
Pre-Reform2003/04
Transition Period(sugar market regime)
Post-Transition Period2010/11e
about5.8 bn €
4.6 bn €
Rev
enue
sO
p. P
rofit
479 mn €
5.9 bn € - 08/09
233 mn € - 07/08
FINANCIAL TRANSPARENCY
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Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 14
CropEnergies page 23
Fruit page 28
3. Financial Highlights H1 2010/11 page 32
4. Outlook 2010/11 page 43
5. Appendix
Annual Financial Statement 2009/10 page 46
Long-term development and key figures page 63
Additional information page 70
FINANCIAL TRANSPARENCY
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Segment Sugar: Development 2009/10 (I)
(mn €) 2009/10 2008/09 2007/08
Revenues 3.154 3.320 3.464EBITDA 331 255 213EBITDA-Margin 10,5% 7,7% 6,1%Operating profit 217 137 60Operating Margin 6,9% 4,1% 1,7%Restructuring and special items -16 102 -20Income from operations (EBIT) 201 239 40
Investments 115 150 195Fixed Assets 107 124 139Financial Assets 9 26 53
Capital Employed 2.890 2.736 2.785RoCE 7,5% 5,0% 2,2%
FINANCIAL TRANSPARENCY
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Segment Sugar: Development 2009/10 (II)
Revenues (mn €)
Operating profit (mn €)
Cost savings through factory closures and other measures take effect on 12-month-basis
Export opportunity extends markets for non-quota sugar
Others 137217
2008/09 2009/10
2008/09 2009/10
3,320 3,154
Temporarily higher non-quota sugar exports were not enough to compensate for the lower quota sugar sales revenues.
FINANCIAL TRANSPARENCY
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o/w SZ: Mauritius ~0.4 mn t Raw sugar imports for raffination through SZ ~0.3 mn t
o/w SZ ~25%
EU sugar market* - supply and demand
EU Production EU Demand World MarketWorld Market
~13 mn t
~16-17 mn t
o/w SZ3.2 mn t
~2-3 mn t
„Quota sugar“
„Non-quota sugar“
Production** 157 mn t
3-4 mn t
up to 0.4 mn t
max. ~1.4 mn t
Demand** 163 mn t
*Simplified, excl. isoglucose**F.O. Licht estimate for 2009/10, August 2010
~3-4 mn t
FINANCIAL TRANSPARENCY
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EU quota sugar production - sugar marketing year* 2009/10
France
Germany
Belgium
Poland
Austria
Rumania
Moldova
20
72
40
25
25
100
39
35Hungary100
CzechRepublic
Slovakia
Bosnia-Hercegowina
Italy
Bulgaria
GreeceSpain
Portugal
Great Britain
* Sugar marketing year: Oct. – Sep.** Südzucker estimates
Südzucker Group(24 %)
Nordzucker(15 %)
All others(32 %)
British Sugar(12 %)
Tereos (10 %)
Pfeifer & Langen
(7 %)
Südzucker quota share per country (in %)Market share** EU quota sugar production
Non-EU productionSüdzucker distribution activity
FINANCIAL TRANSPARENCY
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Cooperation with Mauritius strengthens distribution power
Mauritius
400,000 tonnessugar
Exclusive distributor of ~ 400,000 tonnes p.a. sugar contingent from Mauritius into the EU until 2015
Imported sugar volume… …leverages European distribution platform
…supports core regions
…supports market position in European deficit markets
Distribution power of Südzucker Group builds on approximately 4.5 million tonnes sugar (consisting of production of quota sugar, industrial sugar and refined sugar as well as imported sugar from Mauritius)
FINANCIAL TRANSPARENCY
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Segment Sugar: Outlook 2010/11
Revenues Sales revenue reduction as of 1st of October 2009 takes effect
on full financial year basis for the first time
Higher volume of imported Mauritian sugar
Operating Profit
End of the restructuring phase in the EU sugar market and the elimination of temporary charges associated with sugar market reform (e.g. restructuring levy)
Non-quota sugar exports with one-time positive effect, especially in first quarter
Further and sustainable increase in operating profit
Overall leading to a slight reduction in revenues
FINANCIAL TRANSPARENCY
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Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 14
CropEnergies page 23
Fruit page 28
3. Financial Highlights H1 2010/11 page 32
4. Outlook 2010/11 page 43
5. Appendix
Annual Financial Statement 2009/10 page 46
Long-term development and key figures page 63
Additional information page 70
FINANCIAL TRANSPARENCY
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(mn €) 2009/10 2008/09 2007/08
Revenues 1.396 1.427 1.283EBITDA 209 172 164EBITDA-Margin 14,9% 12,1% 12,8%Operating profit 138 108 107Operating Margin 9,8% 7,6% 8,3%Restructuring and special items 12 -4 -14Income from operations (EBIT) 150 104 93
Investments 58 62 166Fixed Assets 50 60 166Financial Assets 8 2 0
Capital Employed 1.309 1.287 1.217RoCE 10,5% 8,4% 8,8%
Segment Special Products: Development 2009/10 (I)
*adjusted for CropEnergies 2007/08
*
FINANCIAL TRANSPARENCY
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Revenues (mn €)
Segment Special Products: Development 2009/10 (II)
Operating profit (mn €)
108138
2008/09 2009/10
Starch (incl. AGRANA bioethanol) Bioethanol: significant earnings improvement
through omission of start-up losses in Pischelsdorf Raw marterial costs below prior year‘s level Sales revenue decline in H2
Others: Full year effect of BENEO price increases for cost
inflation compensation BENEO volume development impacted by
economic crisis
2008/09 2009/10
1,427 1,396
Lower sales revenues as a result of lower raw material prices - in division starch - as main driver for revenue decline. Despite difficult economic environment, all other divisions on prior year‘s level.
FINANCIAL TRANSPARENCY
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Segment Special Products: Development 2009/10 (III)
BENEO: World market leader with Premium food ingredients like Isomalt, Inulin, Oligofructose or rice starch
Freiberger: Private-label chilled and deep frozen convenience food (Pizza, Pasta, Baguettes)
Starch: Starch, starch niche products with food and non-food industry, isoglucose and AGRANA bioethanol activities
PortionPack: Various portioned products; wide range of products of food and non-food articles
Revenues (mn €)
* incorporates AGRANA bioethanol and starch activities
Revenue split 2009/10
Freiberger32%
BENEO (Functional Food)
24%
PortionPack8%
Starch*36%
1,396mn €
1,427
1,283
1,1611,079
1,396
2005/06 2006/07 2007/08 2008/09 2009/10
CAGR 2005/06-2009/10: ~7 %
FINANCIAL TRANSPARENCY
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Segment Special Products: Division BENEO
BENEO Group bundles Functional Food-operations
Worldwide unchanging growing demand for Functional Food ingredients in view of increasing competition
Increase in awareness for healthy food and growing per-capita income (emerging markets)
BENEO-Orafti (prebiotic fibres from chicory roots): Core products Inulin and Oligofructose; distribution of CropEnergies by-product BeneoPro W
BENEO-Palatinit (functional carbohydrates): Global leadership with Isomalt. Successful positioning of product innovations Palatinose™ and galenIQ™
BENEO-Remy (rice starches): e.g. rice starches, rice flours, rice bran, rice concentrates, …
Exploitation of growth potential of our core products
Development of new markets via innovations
Ingredientsfrom
naturalsource
Ingredientsfrom
naturalsource
processtechnologyprocess
technologyingredient processingingredient processing
regulatory support
regulatory support
nutritional science
nutritional science
PremiumproductsPremiumproducts
nutritional communication
nutritional communication
applicationtechnologyapplicationtechnology
world wide academic network
world wide academic network
specialty ingredient
sales
specialty ingredient
salesfood
marketing intelligence
food marketing intelligence
patent supportpatent support
marketing of health benefits
marketing of health benefits
consumerresearchconsumerresearch
food texturising
food texturising
passionateteam
passionateteam
FINANCIAL TRANSPARENCY
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Segment Special Products: Division Starch*
… for Food Industry (e.g. Baby Food)
…for Food Industry (e.g. Soft Drinks)
…for Food Industry (e.g. Confectionery Products)
… for Foodstuffs, Paper, Textiles, Pharmaceuticals
End Product UseVALUE
VOLUME
Commodities (Potato / Maize Starch)
Glucose Syrups
Isoglucose
Maltodextrins
Derivatives, Ethers and Esters … for Textile / Construction / Cosmetic Industry
Focus
Well established player as manufacturer of specialty starches for the paper, textile, cosmetics, pharmaceutical and construction industries
Principal focus on organic and GM-free starches for the food industry
Niche strategy allows for differenciation against competition and leverages in-house research and development infrastructure
Full utilization of bioethanol plant in Pischelsdorf (Austria)
Full availability of upgraded capacity in Hungary
* incorporates AGRANA bioethanol and starch activities
FINANCIAL TRANSPARENCY
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Segment Special Products: Division Freiberger
Freiberger produces and markets chilled and frozen pizzas as well as frozen pasta and baguettes
Solutions are specifically geared toward the strategies of its business partners: retail industry, caterers and food service operators
December 2008: Acquisition of further pizza production facility in Osterweddingen (Saxony-Anhalt)
Reconception of site in Westhoughton
Unrivalled European market leader for own label/private lable frozen pizzas
Berlin
Osterweddingen
Westhoughton
Muggensturm
Oberhofen
Production facility
FINANCIAL TRANSPARENCY
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Landgraaf (NL)
Barcelona
Prague
Production facility
Herentals (B)Oud-Beijerland (NL) Bodegraven (NL)
Telford
European market leader in individually packaged portions for the food and non-food sectors in Central Europe
In addition to conventional sugar packets, product range includes a wide spectrum of other food portion packs such as baked-goods, chocolate and sandwich spreads
Besides to the out-of-home market (retaurants, hotels, caterers) and food retailers, PortionPack Europe also services industry (contract packing) and the advertising/promotion sectors
December 2008: Expansion into Spain via acquisition of sugar portion pack manufacturer SAES, Barcelona
October 2009: Expansion into UK via acquisition of portion pack market leader Single Source Ltd., Telford
Segment Special Products: Division PortionPack Europe
FINANCIAL TRANSPARENCY
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Segment Special Products: Outlook 2010/11
Volume increase in all divisionsRevenues
Operating Profit
Slighly lower operating profit against prior year
Overall increase in revenues
Earnings development in all divisions less affected by difficult economic market environment
FINANCIAL TRANSPARENCY
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Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 14
CropEnergies page 23
Fruit page 28
3. Financial Highlights H1 2010/11 page 32
4. Outlook 2010/11 page 43
5. Appendix
Annual Financial Statement 2009/10 page 46
Long-term development and key figures page 63
Additional information page 70
FINANCIAL TRANSPARENCY
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(mn €) 2009/10 2008/09 2007/08
Revenues 362 319 180EBITDA 33 29 31EBITDA-Margin 9,2% 9,0% 17,2%Operating profit 12 18 22Operating Margin 3,3% 5,7% 12,2%Restructuring and special items -2 -11 -5Income from operations (EBIT) 10 7 17
Investments 34 171 147Fixed Assets 34 170 147Financial Assets 0 1 0
Capital Employed 525 221 221RoCE 2,3% 8,2% 10,0%
Segment CropEnergies: Development 2009/10 (I)
*since 2008/09 reported as separate segment
*
FINANCIAL TRANSPARENCY
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1218
Segment CropEnergies: Development 2009/10 (II)
Revenues (mn €)
Operating profit (mn €)
Increase in volume / Change in contribution margin
Higher depreciations (ramp-up BioWanze)
2008/09 2009/10
2008/09 2009/10
319 362
Organic growth through extension of production in Zeitz and ramp-up of bioethanol plant in Wanze.
FINANCIAL TRANSPARENCY
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Segment CropEnergies: Development 2009/10 (III)
8.3
4.4
2.4
-3.2
Q1 Q2 Q3 Q4
Improvement of political framework EU: Renewable Energies Directive has
been in force since June 2009
Germany: Federal government wants to introduce E10 to the market
Volume increase of 25% to 601,000 (482,000) m3
Successful launch of Gluten and ProtiWanze®
Founding of the joint venture CT Biocarbonic GmbH Partner: Tyczka Energie GmbH
Beginning of the construction of Germany‘s largest plant for the liquefaction of biogenic CO2 in Zeitz
Source: EU Member States Reports, F.O. Licht, CropEnergies
Quarterly development – Operating profit (mn €)
EU demand/potential and production (bioethanol)
3.92.8
1.8
4.53.5
2.2
19.52.3%1.7%
1.0%
10%
2007 2008 2009e 2020e
Production (mn ) Demand/Potential (mn ) Petrol quotam3 m3
FINANCIAL TRANSPARENCY
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Segment CropEnergies: Outlook 2010/11
Increase in utilization at BioWanze leads to about 10% higher production level
Despite volatile pricing environment …
Revenues
Operating Profit
Despite maintenance shutdown phase in Q1, production facilities in Zeitz and Wanze …
…with positive earnings development on full year basis through higher utilization of capacities for bioethanol and by-product production
Operating profit to exceed 30 (12) million €
… further increase in revenues
FINANCIAL TRANSPARENCY
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Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 14
CropEnergies page 23
Fruit page 28
3. Financial Highlights H1 2010/11 page 32
4. Outlook 2010/11 page 43
5. Appendix
Annual Financial Statement 2009/10 page 46
Long-term development and key figures page 63
Additional information page 70
FINANCIAL TRANSPARENCY
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Segment Fruit: Development 2009/10 (I)
(mn €) 2009/10 2008/09 2007/08
Revenues 806 805 853EBITDA 72 33 81EBITDA-Margin 8,9% 4,0% 9,5%Operating profit 36 -5 44Operating Margin 4,4% neg. 5,1%Restructuring and special items -3 0 -5Income from operations (EBIT) 32 -5 39
Investments 26 42 43Fixed Assets 26 31 43Financial Assets 0 12 0
Capital Employed 650 679 781RoCE 5,5% neg. 5,6%
FINANCIAL TRANSPARENCY
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Segment Fruit: Development 2009/10 (II)
Revenues (mn €)
Operating profit (mn €)
Fruit preparations (revenue share 80%) Slightly higher volumes despite economic crisis
and stronger competition
Cost inflation not fully forwarded into market
Fruit juice concentrates (revenue share 20%) Omission of prior year‘s inventory write-down in
apple juice concentrates
Significant volume increase
Omission of apple juice concentrate write-down
-5
36
2008/09 2009/10Others
2008/09 2009/10
805 806
Substantially lower sales revenues for apple juice concentrate were offset by significantly higher volumes. Volumes in fruit preparations were slightly higher than last year.
FINANCIAL TRANSPARENCY
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Segment Fruit: Outlook 2010/11
Revenues Impulse via innovation and development of new markets in both
divisions
Market recovery facilitates volume increase in division fruit preparations
Recovering sales revenues in fruit juice concentrate expected during course of the year due to weather-driven lower apple harvest
Operating Profit
Further improvement in operating profit mainly supported by volume increase in fruit preparation as well as in fruit juice contentrate divisions
Revenues above previous year
FINANCIAL TRANSPARENCY
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Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 14
CropEnergies page 23
Fruit page 28
3. Financial Highlights H1 2010/11 page 32
4. Outlook 2010/11 page 43
5. Appendix
Annual Financial Statement 2009/10 page 46
Long-term development and key figures page 63
Additional information page 70
FINANCIAL TRANSPARENCY
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Group income statement *
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 1.535 1.524 0,7% 3.068 2.935 4,5%EBITDA 181 132 36,4% 376 261 44,1%
EBITDA margin 11,8% 8,7% 12,3% 8,9%Depreciation -48 -42 14,4% -95 -82 15,1%Operating profit 133 91 46,5% 282 179 57,4%
Operating margin 8,7% 6,0% 9,2% 6,1%Restructuring costs and special items -19 6 - -19 5 -Income from operations 114 97 17,7% 262 184 42,6%Net earnings for the period attributable to Südzucker shareholders 50 55 -9,0% 123 103 19,4%Earnings per share (€) (undiluted) 0,27 0,29 -8,9% 0,65 0,54 19,4%Cash flow 135 128 5,1% 270 243 10,9%Investments in fixed assets 64 65 -0,5% 111 101 9,6%Net financial debt (as of reporting date) 776 962 -19,3%Average number of employees 18.062 17.598 2,6%
2nd quarter 1st half year
* This presentation includes percentage and number rounding
FINANCIAL TRANSPARENCY
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Financial Highlights – 1st half year 2010/11 *
Group revenues up 5 % to 3,068 (2,935) million €
Operating profit increased 57 % to 282 (179) million €
Cash flow up 11 % to 270 (243) million €
Earnings per share rises 19 % to 0.65 (0.54) €
Net financial debt decreased 19 %, i.e. 186 million €to 776 (962) million €
* H1 group revenues and group operating profit reported on 20 September 2010
FINANCIAL TRANSPARENCY
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Segment Sugar: Development 1st half year 2010/11
Revenues: Slight increase in revenues reflects higher quota sales volume and non-recurring non-quota export. In Feburary 2010 the EU has significantly increased the non-quota sugar export contingent. Südzucker has taken benefit of this increase - especially in Q1 2010/11.
Operating profit: Increase was driven by lower costs and good volume development for quota sugar, compensating for the lower sales revenues since 1st of October 2009. Furthermore the increase in operating profit was strongly supported by the Q1 non-quota sugar exports.
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 828 887 -6,7% 1.672 1.655 1,0%EBITDA 85 63 34,7% 191 129 47,8%
EBITDA margin 10,2% 7,1% 11,4% 7,8%Depreciation -13 -11 10,0% -25 -23 12,0%Operating profit 72 51 40,2% 165 107 55,3%
Operating margin 8,7% 5,8% 9,9% 6,4%
2nd quarter 1st half year
FINANCIAL TRANSPARENCY
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Segment Special Products: Development 1st half year 2010/11
Revenues: Main driver for the increase in revenues were significantly higher volumes, especially in divisions starch and BENEO.
Operating profit: The continued good performance in operating profit has exceeded our expectations in H1. It was mainly driven by the starch division. A strong volume development as well as lower energy costs were able to offset the significantly lower sales revenues. All other divisions have shown a positive development.
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 385 339 13,8% 762 688 10,7%EBITDA 56 49 13,8% 114 97 17,4%
EBITDA margin 14,4% 14,4% 14,9% 14,1%Depreciation -19 -17 6,9% -37 -34 7,2%Operating profit 37 31 17,5% 77 63 23,0%
Operating margin 9,6% 9,3% 10,1% 9,1%
2nd quarter 1st half year
FINANCIAL TRANSPARENCY
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Segment CropEnergies: Development 1st half year 2010/11 *
Revenues: Following the extensive inspection and optimization works in factories Zeitz and Wanze in Q1, Wanze has commenced normal operations leading to a significantly higher volume in Q2.
Operating profit: In light of the higher volume in ethanol and respective by-products, operating profit has been strongly lifted. In H1 CropEnergies has taken benefit from low raw material costs. The meanwhile increase in wheat prices has not yet materially impacted H1 numbers.
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 111 93 19,8% 200 180 10,9%EBITDA 23 7 > 100,0% 32 8 > 100,0%
EBITDA margin 20,3% 7,3% 16,2% 4,2%Depreciation -8 -4 72,7% -15 -8 80,8%Operating profit 15 2 > 100,0% 17 -1 -
Operating margin 13,5% 2,6% 8,7% -
2nd quarter 1st half year
* CropEnergies has reported H1 revenues and operating profit on 20 September 2010
FINANCIAL TRANSPARENCY
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Segment Fruit: Development 1st half year 2010/11
Revenues: Despite lower sales revenues, overall revenues for the segment have been increased through higher volumes in fruit preparations as well as in fruit juice concentrates.
Operating profit: The positive earnings trend in Q1 has been resumed in Q2. The positive volume development offsets the lower sales revenues.
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 211 206 2,3% 435 411 5,7%EBITDA 18 14 27,3% 39 28 42,4%
EBITDA margin 8,4% 6,8% 9,0% 6,7%Depreciation -9 -8 5,5% -18 -17 3,1%Operating profit 9 6 60,8% 22 11 > 100,0%
Operating margin 4,2% 2,7% 5,0% 2,6%
2nd quarter 1st half year
FINANCIAL TRANSPARENCY
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Income statement (I)
Restructuring costs and special items: The result reflects mainly expenses in segment sugar which are attributable to a sales tax
supplementary payment for the year‘s 1994 to 1997 in Italy. Income from associated companies:
The result reflects mainly the company‘s share of earnings from our joint ventures sales organizations.
Financial result: The deterioration is mainly attributable to two non-recurring effects; positive currency
effects of the prior year and the discounting of the EU restructuring assistance receivable.
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 1.535 1.524 0,7% 3.068 2.935 4,5%Operating profit 133 91 46,5% 282 179 57,4%Restructuring costs and special items -19 6 - -19 5 -Income from operations 114 97 17,7% 262 184 42,6%Income from associated companies 0 1 -81,1% 1 1 7,0%Financial result -19 -1 > 100,0% -46 -8 > 100,0%Earnings before income taxes 95 96 -1,5% 218 177 23,1%
2nd quarter 1st half year
FINANCIAL TRANSPARENCY
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Income statement (II)
Taxes on income: The tax rate came in at 24 %.
Minority interest: The co-owners of the AGRANA Group account for most of the other minority interests‘
share of the net earnings. Earnings per share:
EPS increased by 19 % to 0.65 €.
(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Earnings before income taxes 95 96 -1,5% 218 177 23,1%Taxes on income -23 -23 -0,1% -53 -38 37,8%Net earnings for the year 72 74 -2,0% 165 139 19,0%of which attributable to Südzucker shareholders 50 55 -9,0% 123 103 19,4%of which attributable to hybrid capital 7 7 0,0% 13 13 0,0%of which attributable to minority interest 16 12 27,9% 29 23 28,5%
Earnings per share (€) 0,27 0,29 -8,9% 0,65 0,54 19,4%
2nd quarter 1st half year
FINANCIAL TRANSPARENCY
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Cash flow statement
Cash flow: The improvement follows the increase in net profit. The decline in working capital was substantially lower than last year, because in June 2009, the company received the EU restructuring payment of € 446 million.
Investments: Continued disciplined capex program with overall investments close to maintenance level.
(mn €) 2010/11 2009/10 ∆Cash flow 270 243 10,9%Decrease (+) in working capital 267 584 -54,3%Investments in fixed assets
Sugar segment 64 51 24,4%Special products segment 28 22 24,7%CropEnergies segment 11 20 -43,2%Fruit segment 8 8 5,4%
Total investments in fixed assets 111 101 9,6%Investments in financial assets 6 4 38,4%
Dividends paid -142 -133 7,0%
1st half year
FINANCIAL TRANSPARENCY
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Balance sheet
Reduction in current assets, non-current and current liabilities leading to reduction in net financial debt:
The reduction in current assets is mainly driven by lower cash requirements following the termination of payments to the EU restructuring fund.
The reduction in current liabilities is driven by the redemption of the 300 million € bond in June 2010. Due to redemption of long term bank loans non-current liabilities have been reduced, too.
(mn €) 31.08.2010 31.08.2009 ∆AssetsNon-current assets 4.089 4.059 0,7%Current assets 2.607 2.872 -9,2%Total assets 6.696 6.931 -3,4%Liabilities and shareholders' equityShareholders' equity 3.578 3.334 7,3%Non-current liabilities 1.859 2.036 -8,7%Current liabilities 1.259 1.561 -19,3%Total liabilities and shareholders' equity 6.696 6.931 -3,4%Net financial debt 776 962 -19,3%Equity ratio 53% 48%Net financial debt in percent of equity (gearing) 22% 29%
FINANCIAL TRANSPARENCY
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Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 14
CropEnergies page 23
Fruit page 28
3. Financial Highlights H1 2010/11 page 32
4. Outlook 2010/11 page 43
5. Appendix
Annual Financial Statement 2009/10 page 46
Long-term development and key figures page 63
Additional information page 70
FINANCIAL TRANSPARENCY
43
-811
-1.191
-971
-1.103
-1.508
-1.920
-1.592
-1.618-1.633
-1.858
-962
-893
-1.065-1.065
-776
-2.300
-2.100
-1.900
-1.700
-1.500
-1.300
-1.100
-900
-700
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
mn
€
NFD End of PeriodNFD Year-ø (End of Period)
FY 2007/08
~ -900--1,000
FY 2008/09 FY 2009/10 FY 2010/11e
Südzucker Group, page
Normalisation of NFD trend continues in 2010/11
Three years with high payments to the EU restructuring fund led to temporary distortion of normal seasonal NFD pattern
In 2009/10 the EU restructuring assistance (received by end of June 2009) has essentially contributed to a reduction in NFD and a seasonal normalisation
Basis for additional reduction in NFD going forward
* Payments to restructuring fund (overall -1.5 bn € )** Südzucker received EU restructuring assistance of 446 mn € in June 2009
-586 mn € * -551 mn € * -363 mn € *+446 mn € **
FINANCIAL TRANSPARENCY
44
Operating Profit2009/10 2010/11e
Group: Outlook 2010/11
Sugar
Revenues2009/10 2010/11e
Special Products
CropEnergies
Fruit
Group 1) 5.7 bn € about 5.8 bn € 403 mn € > 450 mn €
Investments 2)
Net Financial Debt 1) Revised upwards following preliminary announcement on 20 September 2010
2) excl. investments in financial assets
~ 250 mn €
~ 900 – 1,000 mn €
3.2 bn €
1.4 bn €
362 mn €
806 mn €
217 mn €
138 mn €
12 mn €
36 mn €
> 30 mn €
Südzucker Group, page
FINANCIAL TRANSPARENCY
45Südzucker Group, page
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 14
CropEnergies page 23
Fruit page 28
3. Financial Highlights H1 2010/11 page 32
4. Outlook 2010/11 page 43
5. Appendix
Annual Financial Statement 2009/10 page 46
Long-term development and key figures page 63
Additional information page 70
FINANCIAL TRANSPARENCY
46Südzucker Group, page
Financial Highlights 2009/10 (I)
Group revenues decline by 3% to 5.7 (5.9) bn €
Group operating profit increase by 56% to 403 (258) mn €
Segment sugar shows further significant earnings improvement to 217 (137) mn € in light of cost reductions and reduced charges from the restructuring phase of the EU sugar market
Segment special products generates substantially higher profit due to improvements at the BENEO and starch divisions: 138 (108) mn €
Segment CropEnergies profits lower due to ramp-up of bioethanol plant operations in Wanze/Belgium: 12 (18) mn €
Segment fruit profits explicitly recovered to 36 (-5) mn € due to omission of prior year‘s inventory write-down
Increase of group net profit to 276 (183) mn €, EPS 1.06 (0.86) €
Cashflow 553 (504) mn € on high level
Increase in dividend to 0.45 (0.40) € per share
Massive reduction in net financial debt by 35% to 1,065 (1,633) mn €
Successful placement of promissory note in April 2009 (150 mn €; coupon 5.90%; maturity 2014) and convertible bond in June 2009 (283 mn €, coupon 2.5%; maturity 2016)
FINANCIAL TRANSPARENCY
47Südzucker Group, page
Financial Highlights 2009/10 (II)
2008/09 2009/10
Revenues 5.9 bn € 5.7 bn €
Operating Profit 258 mn € 403 mn €
0.40 € 0.45 €
Net profit
Earnings per share
183 mn €
0.86 €
276 mn €
1.06 €
Dividend per share
FINANCIAL TRANSPARENCY
48Südzucker Group, page
Financial Highlights 2009/10 (III)
Sugar
Fruit
Special Products
CropEnergies
137 mn €
108 mn €
18 mn €
-5 mn €
217 mn €
138 mn €
12 mn €
36 mn €Ope
ratin
g Pr
ofit
2008/09 2009/10
Group 258 mn € 403 mn €
FINANCIAL TRANSPARENCY
49Südzucker Group, page
Successful placement of Promissory Note (150 mn €) Convertible bond (283 mn €),
Coupon 2,5%; Maturity 2016)
Financial Highlights 2009/10 (IV)
2008/09 2009/10
Investments* 384 mn € 216 mn €
Cashflow 504 mn € 553 mn €
Net Financial Debt
Liquidity
1,633 mn €
~1.7 bn €
1,065 mn €
~2.5 bn €
Financing
* excl. investments in financial assets
FINANCIAL TRANSPARENCY
50Südzucker Group, page
(mn €) 2009/10 2008/09 2007/08
Revenues 5.718 5.871 5.780EBITDA 645 489 489EBITDA-Margin 11,3% 8,3% 8,5%Operating profit 403 258 233Operating Margin 7,0% 4,4% 4,0%Restructuring and special items -10 87 -44Income from operations (EBIT) 392 345 189
Cashflow 553 504 498Net Financial Debt 1.065 1.633 1.508Equity Ratio 47,3% 41,9% 41,7%
Capital Employed 5.374 4.923 5.005RoCE 7,5% 5,2% 4,7%
Earnings per share (€) 1,06 0,86 0,10Cashflow per share (€) 2,92 2,66 2,63Dividend per share (€) 0,45 0,40 0,40
Group – Key Figures
FINANCIAL TRANSPARENCY
51Südzucker Group, page
Revenue development(mn €)
2008/09 2009/10
5,871
5,718
5400
5450
5500
5550
5600
5650
5700
5750
5800
5850
5900
-166
-301 43Sugar
Special Products
Fruit Crop Energies
FINANCIAL TRANSPARENCY
52Südzucker Group, page
Operating profit development(mn €)
2008/09 2009/10
403
258
100
150
200
250
300
350
400
450
81
3042
-6
Sugar
Special Products
Fruit
Crop Energies
FINANCIAL TRANSPARENCY
53Südzucker Group, page
Result from restructuring and special items
The restructuring result is essentially influenced by charges in the sugar segment which include expenses for restructuring programs and revaluation of default risks. These were largely offset by income from insurance settlements the special products segment received for claims associated with a fire damage at the Freiberger pizza plant in Skelmersdale, Great Britain.
(mn €) 2009/10 2008/09 ∆
Operating profit 403 258 145
Restructuring & special items -10 87 -97
thereof Sugar -16 102 -119
thereof Special Products 12 -4 16
thereof CropEnergies -2 -11 9
thereof Fruit -4 0 -4
Income from operations (EBIT) 392 345 47
FINANCIAL TRANSPARENCY
54Südzucker Group, page
Earnings before income taxes
Income from associated companies mainly includes the company‘s share of earnings from joint-venture sales organizations. The prior year‘s numbers had still included a large sum resulting from the Eastern Sugar B.V. settlement.
The financial result improved by 89 mn € compared to the same period a year earlier. Among other things, the improvement is attributable to lower average debt together with the strengthening of the prior year‘s accruals for currency devaluations for euro-denominated group financing. Discounted receivables from the EU restructuring assistance paid to Südzucker in June 2009 had an ultimately positive impact on interest income.
(mn €) 2009/10 2008/09
Income from operations (EBIT) 392 345 47Income from associated companies 2 22 -20Financial expense -46 -135 89Earnings before income taxes 348 232 116
∆
FINANCIAL TRANSPARENCY
55Südzucker Group, page
Earnings per share
Group tax rate again came in at 21%.
Other minority interests consist mainly of minority shareholders of the AGRANA Group, which contributed to the annual results of the AGRANA Group.
Earnings per share came in at 1.06 €. The prior year‘s earnings per share included a one-time impact of 0.48 € per share from the EU restructuring assistance income associated with the second wave quota returns minus the cost of the factory closures.
Dividend increase to 0.45 (0.40) € per share.
(mn €) 2009/10 2008/09
Earnings before income taxes 348 232 116Taxes on income -72 -49 -23Consolidated net earnings 276 183 93
thereof Südzucker AG shareholders 200 162 38thereof hybrid capital 26 26 0thereof other minority interest 50 -5 55
Earnings per share (€) 1,06 0,86 0,20
∆
FINANCIAL TRANSPARENCY
56Südzucker Group, page
Investments and depreciation
Investments in segment sugar on, special products and fruit significantly below depreciation level. Segment CropEnergies with significant reduction. Ramp-up phase of bioethanol plant in Wanze marks end of investment phase.
Group: Projected reduction in fixed asset investments below 250 mn € more than achieved. Total investments reduced by 45%.
(mn €) 2009/10 2008/09 2009/10
Fixed Assets 216 384 -168 Depreciation 243Sugar 107 124 -17 Sugar 114Special Products 50 60 -10 Special Products 71CropEnergies 34 170 -136 CropEnergies 21Fruit 26 31 -4 Fruit 37
Financial Assets 17 40 -23Sugar 9 26 -18Special Products 8 2 6CropEnergies 0 1 -1Fruit 0 12 -12
Südzucker Group 233 424 -192
∆
FINANCIAL TRANSPARENCY
57Südzucker Group, page
1.508
1.065
1.633Cash Flow
Working Capital Investments
Net Financial Debt reduction due to …(mn €)
274 -233
54
Dividends-133
Disposal of assets
Maintenance capex in established capacities
Cash inflow EU restructuring assistance 446 mn € (June 2009)
Payment to EU restructuring fund -363 (-551) mn €
553
NFD 29.02.2008
NFD 28.02.2009
NFD 28.02.2010
52
Cap. increase through
convertible bond
2009/2016
1,508 1,633
1,065
FINANCIAL TRANSPARENCY
58Südzucker Group, page
Balance sheet ratios
(mn €) 28.02.2010 28.02.2009 29.02.2008
Total assets 7.398 7.709 7.917Equity 3.500 3.229 3.300Equity ratio 47,3% 41,9% 41,7%
Net Financial Debt (NFD) 1.065 1.633 1.508Gearing (NFD/Equity) 30,4% 50,6% 45,7%Cashflow 553 504 498NFD/Cashflow 1,9x 3,2x 3,0x
Goodwill 1.132 1.124 1.104Property, plant, equipment 2.609 2.626 2.596Working Capital 1.512 1.323 1.431
Capital Employed 5.374 4.923 5.005RoCE 7,5% 5,2% 4,7%
FINANCIAL TRANSPARENCY
59Südzucker Group, page
Liquidity profile
Südzucker received EU restructuring assistance of 446 mn € in June 2009 for sugar quota return
(mn €) 2008/09 2009/10Net financial debt -1.633 -1.065Cash & cash equivalents / securities 413 695
Gross financial debt -2.046 -1.760
Long-term financial debt -1.154 -1.120
Short-term financial debt -892 -640
Bank credit lines: 1.421 1.234undrawn 511 558
Syndicated loan facility (July 2012) 600 600undrawn 330 600
Commercial paper program 600 600undrawn 486 600
Total liquidity reserves 1.740 2.452
FINANCIAL TRANSPARENCY
60Südzucker Group, page
2.3%8.2%10.0%
2009/102008/092007/08
4,923 mn €
7.5%
5,374 mn €
403 mn €258 mn €
5.2%
5,005 mn €
233 mn €
4.7%
CropEnergies
Return on Capital Employed (RoCE)
Fruit
Capital Employed
Operating Profit
Segm
ents
Gro
up
RoCE
Special Prod.
Sugar 2.2% 5.0% 7.5%
9.0% 8.4% 10.5%
5.6% neg. 5.5%
FINANCIAL TRANSPARENCY
61Südzucker Group, page
Performance versus Outlook 2009/10 targets achieved
Revenues
Net Financial Debt
Operating Profit
Investments*
prior year‘s level
~400 mn €
~250 mn €
~1.1 – 1.2 bn €
Outlook 2009/10
deutliche Ergebniserholung
Reported 2009/10
5.7 bn €
403 mn €
216 mn €
1,065 mn €
* excl. investments in financial assets
FINANCIAL TRANSPARENCY
62Südzucker Group, page
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 14
CropEnergies page 23
Fruit page 28
3. Financial Highlights H1 2010/11 page 32
4. Outlook 2010/11 page 43
5. Appendix
Annual Financial Statement 2009/10 page 46
Long-term development and key figures page 63
Additional information page 70
FINANCIAL TRANSPARENCY
63
Pre-Reform Post-Transition PeriodActual Actual Actual Actual Actual Actual Actual Outlook
(mn €) 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11e
Revenues 4.575 4.827 5.347 5.765 5.780 5.871 5.718 ~ 5.800EBITDA 677 723 672 682 489 489 645
EBITDA-Margin 14,8% 15,0% 12,6% 11,8% 8,5% 8,3% 11,3%Operating profit 479 523 450 419 233 258 403 > 450
Operating Margin 10,5% 10,8% 8,4% 7,3% 4,0% 4,4% 7,0%Income from operations (EBIT) 446 491 397 -129 189 345 392Earnings before income taxes (EBT) 394 457 328 -227 120 232 348Net earnings 307 358 304 -246 100 183 276
thereof to SZ AG shareholders 255 297 242 -326 19 162 200
Earnings per share (€) 1,48 1,67 1,36 -1,72 0,10 0,86 1,06Dividend per share (€) 0,50 0,55 0,55 0,55 0,40 0,40 0,45
Cashflow 522 553 527 554 498 504 553Investments total 488 1.090 642 599 550 424 233 ~ 250
Capital Employed 4.091 4.646 5.221 4.767 5.005 4.923 5.374RoCE 11,7% 11,3% 8,6% 8,8% 4,7% 5,2% 7,5%
Total Assets 6.038 7.195 7.926 7.932 7.917 7.709 7.398Equity 2.386 2.738 3.733 3.362 3.300 3.229 3.500Equity Ratio 39,5% 38,1% 47,1% 42,4% 41,7% 41,9% 47,3%Net Financial Debt (NFD) 1.008 1.672 1.177 811 1.508 1.633 1.065 ~ 900 - 1.000Gearing (NFD/Equity) 42,2% 61,1% 31,5% 24,1% 45,7% 50,6% 30,4%
Transition Period
Südzucker Group, page
Long-term development
*
**
* Extraordinary impact from Goodwill impairment loss** Does not include Cash inflow of 446 mn € from EU effective June 2009*** Capex (excluding investments in financial assets)
***
FINANCIAL TRANSPARENCY
64Südzucker Group, page
2009/10 2008/09 2009/10(mn €) RoCE RoCE Op. Profit Cap. Employed
Südzucker Group 7,5% 5,2% 403 5.374Sugar 7,5% 5,0% 217 2.890Special Products 10,5% 8,4% 138 1.309CropEnergies 2,3% 8,2% 12 525Fruit 5,5% neg. 36 650
Return on Capital Employed (RoCE)
Sugar: Significant increase in light of strong earnings improvement, despite slight increase in capital employed.
Special Products: Increase with stable capital employed and significant profit uplift.
CropEnergies: Ramp-up of bioethanol plant in Wanze increases capital employed significanlty. Additional operating burden within ramp-up phase.
Fruit: RoCE-development reflects mainly profit recovery after prior year‘s inventory write-down in apple juice concentrates.
Group: Earnings increase in segments sugar, special products and fruit compensate for temporary weak development in segment CropEnergies
* Adjustment segment fruit: Goodwill book value redirected to participation level of parent company
*
FINANCIAL TRANSPARENCY
65Südzucker Group, page
Liquidity profile end of period
Südzucker received EU restructuring assistance of 446 mn € in June 2009 for sugar quota return
(mn €) Q2 2009/10 Q3 2009/10 Q4 2009/10 Q1 2010/11 Q2 2010/11
Net financial debt -962 -893 -1.065 -1.065 -776
Cash & cash equivalents / securities 872 900 695 699 637
Gross financial debt -1.834 -1.793 -1.760 -1.764 -1.413
Long-term financial debt -1.245 -1.186 -1.120 -1.113 -1.083
Short-term financial debt -589 -607 -640 -651 -330
Bank credit lines: 1.322 1.276 1.234 1.177 1.133
undrawn 581 569 558 515 532Syndicated loan facility (July 2012) 600 600 600 600 600
undrawn 600 600 600 600 600Commercial paper program 600 600 600 600 600
undrawn 600 600 600 600 600
Bank credit lines (undrawn) 581 569 558 515 532+ Cash & cash equivalents / securities 872 900 695 699 637+ Syndicated loan (undrawn) 600 600 600 600 600+ Commercial paper (undrawn) 600 600 600 600 600= Total liquidity reserves 2.653 2.669 2.452 2.414 2.368
FINANCIAL TRANSPARENCY
66Südzucker Group, page
Financing maturity profile further enhanced
6.25% Bond 2000/2010, 300 mn €
5.75% Bond 2002/2012, 500 mn €
Syndicated loan, 600 mn €, no covenantsmargin max. 35 bp, short-term borrowing facility 1 week < 1 year volume 2010/11 Q2: 0 mn €
5.25% Hybrid Bond 2005/2015, 700 mn € Perpetual; first issuer call right June 2015
Commercial Paper-Program, 600 mn € Drawn lines 2010/11 Q2: 0 mn €
June 2010
February 2012
July 2012
June 2015
Perpetual
5.90% German promissory note, 150 mn €April 2014(Placement April 2009)
June 2016(Placement June 2009)
2.50% Convertible Bond 2009/2016, 283 mn € Issuer Call after 4 years; Investor Put after 5 years
FINANCIAL TRANSPARENCY
67Südzucker Group, page
Group balance sheet(mn €)
Other current assets
Inventories
Non-current assets
Assets28.02.2009 28.02.2010
7,709
1,641(21.3 %)
1,997(25.9 %)
4,071(52.8 %)
7,398
1,536(20.7 %)
1,751(23.7 %)
4,111(55.6 %)
Current liabilities
Non-current liabilities
Equity
Total
Liabilities28.02.2009 28.02.2010
7,709
2,539(32.9 %)
1,940(25.2 %)
3,229(41.9 %)
7,398
1,976(26.7 %)
1,922(26.0 %)
3,500(47.3 %)
Total
FINANCIAL TRANSPARENCY
68Südzucker Group, page
Group balance sheet
(mn €) 28.02.2010 28.02.2009
Intangible assets 1.189 16,1% 1.181 15,3%Property, plant, equipement 2.552 34,5% 2.569 33,3%Shares in associated companies 19 0,3% 76 1,0%Other investments and loans 29 0,4% 23 0,3%Securities 146 2,0% 105 1,4%Receivables and other assets 13 0,2% 8 0,1%Deferred tax assets 164 2,2% 108 1,4%Non-current assets 4.111 55,6% 4.071 52,8%
Inventories 1.751 23,7% 1.997 25,9%Trade receivables and other assets 962 13,0% 1.301 16,9%Current tax receivables 25 0,3% 33 0,4%Securities 191 2,6% 144 1,9%Cash and cash equivalents 357 4,8% 164 2,1%Current assets 3.287 44,4% 3.638 47,2%
Total assets 7.398 100,0% 7.709 100,0%
(mn €) 28.02.2010 28.02.2009
Equity attributable to shareholders of SZ AG 2.271 30,7% 2.047 26,5%Hybrid capital 684 9,2% 684 8,9%Other minority interest 546 7,4% 499 6,5%Shareholder's equity 3.500 47,3% 3.229 41,9%Provisions for pensions and similar obligations 409 5,5% 405 5,2%Other provisions 188 2,5% 201 2,6%Non-current financial liabilities 1.119 15,1% 1.154 15,0%Other liabilities 15 0,2% 15 0,2%Deferred tax liabilities 191 2,6% 165 2,1%Non-current liabilities 1.922 26,0% 1.940 25,2%Other provisions 104 1,4% 117 1,5%Current financial liabilities 641 8,7% 891 11,6%Trade and other payables 1.193 16,1% 1.498 19,4%Current tax liabilities 37 0,5% 33 0,4%Current liabilities 1.975 26,7% 2.539 32,9%Total liabilities and shareholders' equity 7.398 100,0% 7.709 100,0%
FINANCIAL TRANSPARENCY
69Südzucker Group, page
Agenda
1. Overview and strategic objectives page 3
2. Development of Segments
Sugar page 7
Special Products page 14
CropEnergies page 23
Fruit page 28
3. Financial Highlights H1 2010/11 page 32
4. Outlook 2010/11 page 43
5. Appendix
Annual Financial Statement 2009/10 page 46
Long-term development and key figures page 63
Additional information page 70
FINANCIAL TRANSPARENCY
70Südzucker Group, page
Revenue by region 2009/10
Germany (29.9 %)
EU 15(48.9 %)
Rest of world(8.3 %)
5,718 mn €EU 12(12.9 %)
FINANCIAL TRANSPARENCY
71Südzucker Group, page
Segment Sugar: Campaign SMY 2009/10
Beet growers: 46,000 (47,600)
Beet acreage: 401,000 (370,000) ha
Sugar factories (incl. refineries): 32 (33)
Beet processing: 28.4 (25.0) mn tons
Sugar production: 4.8 (4.2) mn tons thereof from beets: 4.4 (3.9) mn tons
thereof raw sugar raffination: 0.4 (0.3) Mio. t
FINANCIAL TRANSPARENCY
72Südzucker Group, page
Südzucker well positioned in „Beet Belt“
Poland
Slovakia
Hungary
Austria
Germany
FranceRomania
Moldova
BelgiumCzech Republic
FINANCIAL TRANSPARENCY
73Südzucker Group, page
Segment Sugar: Factory structure and cost savings
16
47
76
137 142
02468101214161820222426283032343638404244464850525456586062646668707274767880828486889092949698100102104106108110112114116118120122124126128130132134136138140142144146148150
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11e
** beet sugar factories and refineries
* including reductions in the context of factory closures
Factory structure Cost savings (in mn €)
8,1008,2188,59810,043
10,88511,67812,001
13,812
46 45 42 4133 32 32
52
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11e-100
-80
-60
-40
-20
0
20
40
Employees * Factories **
FINANCIAL TRANSPARENCY
74Südzucker Group, page
Price development for raw and white sugar (NYMEX, LIFFE, EU)
150
200
250
300
350
400
450
500
550
600
12.0
2.20
09
12.0
3.20
09
12.0
4.20
09
12.0
5.20
09
12.0
6.20
09
12.0
7.20
09
12.0
8.20
09
12.0
9.20
09
12.1
0.20
09
12.1
1.20
09
12.1
2.20
09
12.0
1.20
10
12.0
2.20
10
12.0
3.20
10
12.0
4.20
10
12.0
5.20
10
12.0
6.20
10
12.0
7.20
10
12.0
8.20
10
12.0
9.20
10
12.1
0.20
10
Quo
tatio
n fo
r sug
ar in
€/ t
on
White sugar contract No. 5 LIFFE London (Future contract switching upon expiry)
Raw sugar contract No. 11 NYMEX New York (Future contract switching upon expiry)
FINANCIAL TRANSPARENCY
75Südzucker Group, page
Bioethanol: Further EU support fuels potential
Renewable Energies Directive Mandatory blending rate for
renewable energies of 10% in 2020
Introduction of sustainability criteria (e. g. reduction of greenhouse gas emissions by at least 35%)
Amendment of the Fuel Quality Directive Technical basis for EU-wide
introduction of E10
Decarbonisation of the transport sector Reduction of greenhouse gas emissions
caused by fossil fuels by 10% by 2020
Average greenhouse gas emissions of new cars of 95 g CO2/km by 2020
Consequence: Market for sustainably produced bioethanol in EU is growing
0
500
1,000
1,500
2,000
FRA GER ESP UK POL SWE HUN AUT ITA Others
,000
m3
2008 2009
Source: BAFA
Source: F.O. Licht
Development EU bioethanol production
Fuel ethanol volume in Germany
0
500
1,000
1,500
2007 2008 2009
,000
m3
Bioethanol in ETBE Direct blending Bioethanol in E85
79.7% 58.7%22.4%
76.8%40.2%
19.2%1.1%
1.1%
0.8%
FINANCIAL TRANSPARENCY
76Südzucker Group, page
Bioethanol: The alternative fuel
Convenient handling, comparable to fossil fuel Liquid; using existing tanks and station infrastructure Easy filling under atmospheric pressure with existing security systems
Established vehicle technology Up to 10% (low blends) no modifications required High blends (E85): FFV modifications cheap with cost of up to 400 €/car
Non toxic, non hazardous, environmental friendly, sustainable CO2 Balance
CO2 neutral photosynthesis: energy plants absorb CO2 (emmetting oxygen);when burned, oxygen is absorbed (emmetting CO2)
Each litre of Bioethanol saves 0.8 – 2.2 kg CO2 vs. Petrol (Source: LAB)
Energy Balance Net energy balance 3.2 : 1 (efficiency CEAG factory Zeitz) (Source: CropEnergies)
Net energy balance 2.1 : 1 (well to wheel) Net energy balance of petrol 0.8 : 1 (Source: Worldwatch)
FINANCIAL TRANSPARENCY
77Südzucker Group, page
Price development wheat and maize (Euronext, LIFFE)
110
120
130
140
150
160
170
180
190
200
210
220
230
240
12.1
1.20
09
12.1
2.20
09
12.0
1.20
10
12.0
2.20
10
12.0
3.20
10
12.0
4.20
10
12.0
5.20
10
12.0
6.20
10
12.0
7.20
10
12.0
8.20
10
12.0
9.20
10
12.1
0.20
10
€/ t
on
Wheat price (Future contract March 2011) Price for maize (Future contract March 2011)
FINANCIAL TRANSPARENCY
78Südzucker Group, page
Segment Fruit – with leading positions in both divisions
Overview Division Fruit preparations: World market leader
Customers: dairy, baking and ice cream industry
Division Fruit juice concentrates: Leading European producer (market leader in apple juice concentrates)
Core competences Upgrading of agricultural raw material into
premium preliminary products for food industry
Global sourcing and distribution of fruit ingredients
Positioning & Strategy Shared customer base with segments/divisions sugar,
BENEO and starch
Accelerated organic growth Emphasis on expansion into attractive growth regions
(e.g. Brazil, Russia, China) Growth drivers:
Especially yogurt drinks rank among the fastest growing food products globally
Increase in awareness for healthy food and growing per-capita income (emerging markets)
Synergies / Production cost optimisation
780
AGRANA J&F Holding GmbH, Vienna
AGRANA Juice GmbH, Gleisdorf
AGRANA Fruit S.A. Paris
Fruit preparations
80% of segment revenues ~37% world market share 25 facilities on the globe
Fruit juice concentrates
20% of segment revenues~15% European market share 10 facilities worldwide
Revenues (in mn €)
541
780 853 805 806
2005/06 2006/07 2007/08 2008/09 2009/10
12 months 915*
* Financial year adjustment
FINANCIAL TRANSPARENCY
79Südzucker Group, page
Segment Fruit: Production facilities
FINANCIAL TRANSPARENCY
80Südzucker Group, page
ContactHead of Investor RelationsNikolai Baltruschat Tel.: +49 (621) 421 - [email protected]
DisclaimerThis presentation contains forward looking statements based on assumptions and estimates made by the executive board of Südzucker AG. Although the executive board may be convinced that these assumptions and estimates are reasonable the future actual developments and future actual results may vary considerably from the assumptions and estimates due to many external andinternal factors. For example, matters to be mentioned in this connection include negotiations relating to the world trade agreement (WTA), changes to the overall economic situation, changes to EU sugar policies, consumer behavior and state food and energy policies. Südzucker AG assumes no responsibility and accepts no liability for future developments and future actual results achieved being the same as the assumptions and estimates included in this presentation.
Financial calenderQ3 – 3rd quarter report 2010/11 January 13, 2011Press and analysts‘ conference for 2010/11 May 18, 2011Q1 – 1st quarter report 2011/12 July 14, 2011Annual general meeting for fiscal 2010/11 July 21, 2011Q2 – 2nd quarter report 2011/12 October 13, 2011Q3 – 3rd quarter report 2011/12 January 12, 2012