Investor Roadshow Stockholm/Helsinki, 7-8 March 2016

Transcription

1 Investor Roadshow Stockholm/Helsinki, 7-8 March 2016 Bernhard Juretzek (Manager Investor Relations) Südzucker Group, page 1

2 Disclaimer 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 2014/15 annual report on pages 80 to 91 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. Typing and printing errors reserved. IFRS 11 application as of financial year 2013/14. Written and visual value statements are standardized as follows: ± 1% stable / ± 1-4% slight / ± 4-10% moderate / >/< 10% significant Südzucker Group, page 2

3 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2015/16 page Outlook 2015/16 page Appendix Long-term development and key figures page 69 Additional information page 80 Südzucker Group, page 3

4 Südzucker Group at a glance Global operating German food group with long-standing corporate history: Südzucker Group, page :Foundation of first sugar company 1926:Foundation of Süddeutsche Zucker-AG Revenues: 6,778 bn Operating profit: 181mn Production facilities: ~100 Employees: ~ Beneficiary of mega trends within food, animal feed and energy area Stock exchange listing in Germany MDAX-member Trading volume: ~ 1.5 mn shares/day Market Cap and Shareholder Structure* Zucker Invest GmbH (10%) Südzucker indirect via Z&S (43%) Agrana ~1.1 bn Z&S*** (86%) Free float (34%) Südzucker ~2.8 bn SZVG** (56%) Südzucker direct (~7%) Free float (7%) SZVG** (7%) Südzucker (69%) Crop Energies ~332 mn Free float (24%) * 29 Feb ** Süddeutsche Zuckerrübenverwertungs-Genossenschaft eg *** Z&S Zucker und Stärke Holding AG (~50% Südzucker, ~50% ZBG (Zucker- Beteiligungsgesellschaft m.b.h.))

5 Key figures 2014/15 (mn ) Sugar Special Prod. CropEnergies Fruit Group Revenues EBITDA EBITDA-Margin 4,1% 11,2% 3,3% 9,8% 6,7% Depreciation Operating profit Operating Margin 0,2% 7,0% -1,5% 6,1% 2,7% Cash flow 389 Investments in fixed assets Capital Employed RoCE (incl. Goodwill) 0,2% 8,7% -2,2% 8,4% 3,1% RoCE (excl. Goodwill) 0,3% 11,0% -2,2% 9,4% 3,8% Equity Ratio 52,6% Gearing (NFD/Equity) 13,3% Earnings per share ( ) 0,10 Dividend per share ( ) 0,25 Südzucker Group, page 5

6 LeadingMarket Positions and clearstrategic Objectives Segment/Division Market Position Strategy / Main Drivers Sugar BENEO Freiberger Starch PortionPack CropEnergies Fruit Preparations Fruit Juice Concentrates #1 in Europe #1 worldwide in Isomalt and Oligofructose #1 in Europe in frozen Pizza (private label) #1 in Europe in portion packs One of the leading bioethanol players in Europe #1 worldwide #1 in Europe Further enhancement of leading market position in Europe; especially in deficit markets Expedite internationalization; partnership with ED&F Man Leverage strength of core products into product innovations Further internal and external growth Focus on specialty starches Market share expansion through new facilities Development of product portfolio and regions Full exploitation of implemented capacity build-up Consolidation of the leading position Take full benefit of global increase in demand for healthy food and upmarket products through new facilities (e.g. USA) Usage of integrated platform to raise synergies in combined global sourcing and distribution Platform with Austria Juice supports growth and profitability Südzucker Group, page 6

7 Portfolio benefits from long-term megatrends 8,000 6,000 mn sugarconsumption worldwide t 218, , ,000 USD 12,000 8,000 per capita income worldwide 4,000 2,000 population growth worldwide 98,000 58,000 18,000 4,000,0 emerging markets Sources: United Nations, F.O. Licht Source: ERS InternationalMacroeconomic DataSet mn barrel / day oil consumption USD / barrel crude oil price,200 0 mn t 1,000,800,600,400 global animal feed production Source: BP, EIA Source: USDA Südzucker Group, page 7

8 Return on Capital Employed(RoCE RoCE) 2010/ / / /14* 2014/15 5 years Sugar 10.4% 17.1% 22.4% 13.7% 0.2% ~13% Segments Special Prod. CropEnergies 10.8% 8.7% 10.7% 10.2% 9.5% 17.3% 6.3% 6.4% 8.7% -2.2% ~9% ~8% Fruit 6.7% 4.7% 5.0% 8.1% 8.4% ~7% RoCE 9.8% 13.2% 16.3% 10.6% 3.1% ~11% Group Operating Profit 521 mn 751 mn 972 mn 622 mn 181 mn ~600 mn Capital Employed 5,314 mn 5,707 mn 5,950 mn 5,873 mn 5,877 mn ~5,700 mn Südzucker Group, page 8 * IFRS 11 adjusted since 2013/14

9 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2015/16 page Outlook 2015/16 page Appendix Long-term development and key figures page 69 Additional information page 80 Südzucker Group, page 9

10 Rating Rating agency Long-term rating Short-term term rating BBB-* Stable Outlook * A 3 * Baa2 ** Negative Outlook *** P 2 * since 15 June 2015 ** since 17 June 2014 *** since 23 January 2015 Südzucker Group, page 10

11 Unchanged comfortable liquidity position* (mn ) Net financial ial debt Cash & Cash equivalents / securities Gross financial debt Long-term financial debt Short-term financial debt Bank credit lines: undrawn Syndicated loan facility undrawn Syndicated loan facility Agrana undrawn Commercial paper program undrawn = Total liquidity ty reserveserves * IFRS 11 adjusted since28 February2014 Südzucker Group, page 11

12 Financing maturity profile* (mn mn ) asof of30 November EUR-Bond Promissory Note Syndicated loan 1,050 mn Commercial Paper Programm 600 mn (perpetual) Hybrid Bond 700 mn (perpetual) 5.25 % beforejune 2015 payoutannually/ from June M-Euribor bp payout quarterly * Displayedto2020; Agrana promissorynote: 14 mn tranchedue in 2021, 7 mn tranchedue in 2022 Südzucker Group, page 12

13 Hybrid bond2005 / cash flow covenant* (mn ) 2005/ / / / / / / / / /15 Reve nues Cash flow Cash flow / Revenues 9,9% 9,6% 8,6% 8,6% 9,7% 9,8% 11,8% 12,6% 9,3% 5,7% * IFRS 11 adjusted since 2013/14 Cash flowcovenant(cash flow/ revenues>5 %) so farsignificantlyexceeded Cash flow covenant fulfillment also expected in 2015/16 Options forhybrid bond(depending dependingon continuous financial planning): Since30 June 2015: quarterlyvariable interestpayment, 3M Euriborplus 3.10 % p.a. Periodfrom31 December2015 to31 March 2016, rate of remunerationfixedat % p.a. Since 30 June 2015, bond can be called and redeemed on quarterly basis at nominal value (according to 6 (5) & (6)) Precondition to use issuer call right is replacement through new hybrid or equity capital A bondrepurchase also partially ispossibleat anytime Still preferred option: No call of hybrid bond Südzucker Group, page 13

14 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2015/16 page Outlook 2015/16 page Appendix Long-term development and key figures page 69 Additional information page 80 Südzucker Group, page 14

15 Segment Sugar: Key figures* (mn ) 2011/ / / /15 Revenues EBITDA EBITDA-Margin 16,8% 19,6% 14,3% 4,1% Operating profit Operating Margin 13,7% 16,7% 11,2% 0,2% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 17,1% 22,4% 13,7% 0,2% * IFRS 11 adjusted; since 2013/14 income from companies consolidated at equity included in EBIT Südzucker Group, page 15

16 Segment Sugar: Market environment(i)* World market Inventories After 4 years in a row no further increase since October 2014 Expectation of decrease in global inventories from October 2015 Exchange rates Massive depreciation of Brazilian real vs. USD since autumn 2014 Pricing First recovery following several years of decreasing world market prices World Sugar Balance (mn t) / / /15e 2015/16e * * * * 42.2% 44.0% 43.8% 39.6% Production Consumption Ending stock *Ending stock in % of consumption Sugar world market price(usd/t) White sugar * Simplified 300 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Südzucker Group, page 16

17 Segment Sugar: Market environment(ii (II)* EU EU-COM quota sugar inventory(mn t) Imports Stablesituation in SMY 2013/14 following multi-year increase Decrease of imports SMY 2014/15 Inventory level quota sugar EU measures lead to massive increase Decrease in SMY 2013/14 Further massive decrease expected in SMY 2014/15 and 2015/16 Pricing quota sugar Massive decrease until December 2014 Current bottoming out Upside opportunity in the course of SMY 2015/16 * Simplified Sept.'08 Sept.'09 Sept.'10 Sept.'11 Sept.'12 Sept.'13 Sept.'14 Sept.'15e Sept.'16e Price reporting EU-COM ( /t) Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Südzucker Group, page 17

18 EU sugar market* -supply and demand until 2017 World Market EU Production EU Demand World Market Quota sugar ~ mnt CAGR 2-3% ~13 mnt 3-4 mnt o/w SZ: Rawsugarimportsfor raffinationthroughsz ~0.3 mnt Demand** mnt Production** mnt o/w SZ 3.2 mnt o/w SZ ~25% upto to0.4 mnt max. ~1.4 mnt ~3-4 mnt ~2-3 mnt Non-quota sugar *Simplified, excl. isoglucose **F.O. Licht estimate for 2015/16, February 2016 Südzucker Group, page 18

19 Segment Sugar: Europe European market leader(24%) Pan-European sales and logistic strategy Sustainable production in highest beet-yield areas in Europe Cost savings throughout entire value chain Great Britain Poland Germany Belgium 7 Czech Republic Slovakia Austria France Hungary Moldova Romania Keeping and strengthening competitiveness Exploiting growth opportunities outside Europe Portugal Spain Italy Bosnia- Hercegovina Bulgaria Greece Exports fromeu Acquisitions Distribution activities Beet sugar factories Sugar refineries Südzucker Group, page 19

20 EU quota sugar production- sugar marketing year* 2014/15 Market share** EU quota sugar production Südzucker quota shareper country(in %) Südzucker Group (24 %) Nordzucker (15 %) Great Britain Poland Tereos (11 %) Belgium 72 Germany Czech Republic 39 Slovakia Moldova British Sugar (11 %) 20 France 100 Austria 100 Hungary 35 Rumania All others (16 %) Royal Cosun (7 %) Cristal Union (8 %) Pfeifer & Langen (8 %) Portugal Spain Italy Bosnia- Hercegowina Bulgaria Greece * Sugar marketingyear: Oct. Sep. ** Südzucker estimates Südzucker Group, page 20 Südzucker distribution entities Non-EU production

21 Participationin in ED&F Man offersa global footprint Long standing successful history(founded 1783) Truely global footprint(~3,400 employees in 60 countries) Beneficiaryoflong-term growthin global sugar demand Approx. 9 mnt global sugartradingvolume; oneof thelargestsugartraderwithsignificantpresencein Central and South America, Far East, South East Asia and Africa Sugar only Liquid Products only Coffee only Multiple businesses Participationsin sugarproductionandrefiningcapacitiesamongstothersin the Ukraine, Mexico, Chile and India Well positioned in further complementary key product categories Trading of coffee(incl. roasting) and molasses(man liquid products) Further business activities in divisions shipping and financial services Südzucker Group, page 21

22 Segment Sugar: Outlook 2015/16 Revenues Operating Result Decrease in quota sugar prices with full year impact Significant revenue decrease(previous year: 3,228 mn ) Since prices have again declined since the beginning of the 2014/15 sugar marketing year on 1 October 2014, this will now impact the entire fiscal year. Shortfall from further declining prices can no longer be offset by lower raw material costs. While lower fixed unit costs will have a mitigating impact due to the longer campaign in 2014, because of the reduced planting required for 2015, there will be a shorter campaign, which means that fixed unit costs will likely rise again. Step by step impact of introduced cost reduction measures, but will only be enough to partly offset the declining prices. Operating loss in range of 60 to 80 mn (Previous year: 7 mn ) but positive EBITDA Südzucker Group, page 22

23 EU Sugar Market: Mid term Outlook (I) EU sugar policy until 30 September 2017 Sugar and isoglucose quota Quota sugar: Minimum beet price Contractual obligation between industry and farmer Specification of EU-Toolbox : Market withdrawals, conversion of nonquota into quota sugar, import tender Exports limited to about 1.4 mnt p.a. New market framework 1 October 2017 Elimination of sugar and isoglucose quota No minimum beet price Contractual obligation between industry and farmer Further measures/security net (e.g. private storage) require resolution No export restrictions 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 Südzucker Group, page 23

24 EU Sugar Market: Mid term Outlook (II) EU sugar demand currently served by EU sugar demand asof October 1, 2017 served by EU beet sugar 70 % EU sugar demand 19 mn t EU beet sugar 10 % EU sugar demand 19 mn t Imports 16 % Quota EU isoglucose 4 % Non-Quota Max. Export Volume (WTO): about 1.4 mn t No export restrictions Südzucker Group, page 24

25 EU Sugar Market: Mid term Outlook (III) Opportunities Südzuckerwell positioned as largest producer with focus on best growing regions Only limited effort needed to increase and extend current production level (with high entry barrier 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 producers) Challenges 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 Südzucker Group, page 25

26 Segment Sugar: Mid termoutlook Global demand trend of ~ 2% p.a. growth intact (population growth, increase in per-capita income ) Recovery of world market price Temporary EU market distortion in transition period Stop of EU market restrictions, e.g. minimum beet price, Strong market position in combination with strong foothold in best growing area in the centreof demand Necessary efficiency improvements Increase production ~120 days (fixed cost degression) Omission of EU minimum beet price / flexible beet price payment Cost savings program Capex Maintenance Administration (further centralization) No restrictions on exports anymore (partnership with ED&F Man) Operating Profit Perspective ~ 250 mn -60 to -80 mn 2015/16e mid term Südzucker Group, page 26

27 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2015/16 page Outlook 2015/16 page Appendix Long-term development and key figures page 69 Additional information page 80 Südzucker Group, page 27

28 Segment Special Products: Key figures* (mn ) 2011/ / / /15 Revenues EBITDA EBITDA-Margin 12,8% 11,5% 9,0% 11,2% Operating profit Operating Margin 8,3% 7,1% 4,9% 7,0% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,7% 9,5% 6,3% 8,7% * IFRS 11 adjusted; since 2013/14 income from companies consolidated at equity included in EBIT Südzucker Group, page 28

29 Segment Special Products: Overview Segment specialproductsshowssolid fundamental development and record result* Growth based on intact mega trends: Unchanged trend to alternative and functional food ingredients Further growing demand for convenience products Unchanged global demand growth for aminal feed(e.g. gluten) New capacitiestotakebenefitof market growth Productioncostreductionvia alternative energy concepts(biomass boiler Chile) Efficiency gains via distribution synergies * with respect to IFRS 11 regrouping Hungrana in 2013/14 from operating profit to income from companies consolidated at equity 1,396 Starch*** 40% Revenues(mn )** 1,575 1,806 Revenue split 2014/15 PortionPack 7% 1,724 mn 1,862 1,740 1, / / / / / /15 Freiberger 30% BENEO (Functional Food) 23% ** IFRS 11 adjusted since 2013/14 *** incorporates AGRANA bioethanol and starch activities Südzucker Group, page 29

30 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) Market leadership in main product categories BENEO-Orafti(prebioticfibresfromchicoryroots): Core productsinulin andoligofructose; distributionof CropEnergies by-product BeneoPro W BENEO-Palatinit (functionalcarbohydrates): Global leadershipwithisomalt. Successfulpositioningof product innovations Palatinose and galeniq BENEO-Remy (rice starches): e.g. rice starches, rice flours, rice bran, rice concentrates, Sales Offices Regional Centers Production facility Exploitationof of growthpotential of our core products Development of new marketsvia innovations Offstein Südzucker Group, page 30

31 Segment Special Products: Division Starch* Well establishedplayerasmanufacturerofspecialtystarchesforthepaper, textile, cosmetics, pharmaceutical and construction industries Principal focus on organic and GM-free starches for the food industry Commisioning of new Agrana starch factory for production of wheat starch and gluten at the site of bioethanol plant in Pischelsdorf(June 2013). Investment of 70 mn. Capacity for 107,000 t wheatstarch, 23,500 t wheatgluten, 55,000 t wheatbranand70,000 t of material substitutes( B+C starch ) for bioethanol. New modular concept with new Südzucker starch factory planned at the site of bioethanol plant in Zeitz. Comissioningplanned Q1 of FY 2016/17. Investment of 125 mn. Capacity for up to 140,000 t wheat starch products. Zeitz (DE, new plant) Gmünd (A) Aschach(A) Pischelsdorf(A) Production starch Szabadegyhaza(HU) Tandarei(RO) Production bioethanol * incorporates AGRANA bioethanol and starch activities Pischelsdorf Südzucker Group, page 31

32 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 Unrivalled European market leader for own label/private lable frozen pizzas Successful reconception of site in Westhoughton, UK Distribution center USA Westhoughton Berlin Osterweddingen Production facility Muggensturm Oberhofen Muggensturm Südzucker Group, page 32

33 Segment Special Products: Division PortionPack Europe European market leader in individually packaged portions for the food and non-food sectors 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(restaurants, hotels, caterers) and food retailers, PortionPack Europe also services industry and the advertising/promotion sectors Telford Oud-Beijerland Beijerland(NL) Krakow Herentals(B) Landgraaf(NL) Nuremberg Prague Barcelona Südzucker Group, page 33 facility Prague

34 Segment Special Products: Outlook 2015/16 Revenues Divisions Freiberger, Beneo, starch and PortionPack overall performance with slight increase Supportive ethanol price development Slight revenue increase (Previous year: 1,724 mn ) Operating Result Positive impulse through realized ethanol price level Charges related to ramp-up of new starch plant in Zeitznot until beginning of fiscal 2016/17 when plant is installed Operating result above 145 mn (Previous year: 120 mn ) Südzucker Group, page 34

35 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2015/16 page Outlook 2015/16 page Appendix Long-term development and key figures page 69 Additional information page 80 Südzucker Group, page 35

36 Segment CropEnergies: Key figures* (mn ) 2011/ / / /15 Revenues EBITDA EBITDA-Margin 15,9% 18,5% 9,5% 3,3% Operating profit Operating Margin 10,0% 13,5% 4,9% -1,5% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 10,2% 17,3% 6,4% -2,2% * IFRS 11 adjusted; since 2013/14 income from companies consolidated at equity included in EBIT Südzucker Group, page 36

37 Segment CropEnergies: Market environment 2015/16 Market development grain Global 2015/16e: production of 2,003 million t and graininventorytoincreaseby5% to477 milliont EU 2015/16e: grainharvesttodecreaseby6.5%, but 308 milliont arestill aboveaverage EU grainprice: dipto 160 /t byend of August 2015 Market development bioethanol EU: high volatility of bioethanol prices Dramatic drop to all-time low at 417 /m 3 on 14 Jan 2015 EU prices recovered during the last months, reaching > 640 /m 3 by end of November 2015 CropEnergies capacity utilization Zeitz, Wanze, Loon-Plage: producingat high capacity Wilton: temporary standstill Bioethanol production 9M 2015/16: 618 (777),000 m³ ( /m 3 ) Quotation: Wheat /t / Ethanol /m 3 Houston Santiago de Chile NYMEX Fuel EtOH T2 FOB Rdm. Euronext Paris Wheat No. 2 Nettorohertrag für Weizen-EtOH São Paulo Rotterdam Loon-Plage Wilton Wanze Duisburg Zeitz ( /t) Production facility Tank storage Trading Südzucker Group, page 37

38 EU: agreement on framework for 2020 ( iluc directive ) Amendment published on 15 Sept 2015 Share of renewable energies in transport of 10% in 2020 (unchanged) Share of conventional biofuels: up to 7% Subtargetfor biofuels from waste and residues: 0.5% EU: market size and market potential (in 1,000 toe *) 30,000 25,000 EtOH 27,000 FAME** Double counting of advanced biofuels and multiple counting of renewable electricity 20,000 18,900 18,987 Reporting of estimated iluc emissions 15,000 13,487 5,238 Assessment and outlook Agreement ends discussion and insecurity after 3 years Transformation in national law to come 10,000 5,000 2,669 10,819 13,749 E10 from EU ethanol (plus protein byproducts) offers a clean, safe, strong solution to decarbonize transport 0,000 Actual (2014) 10 cal.-% (2020) 7 cal.-% (2020) B7/E10 (2014) * tonne of oil equivalent ** fatty acid methyl esther Source: EUROBSERV ER, EU, CE Südzucker Group, page 38

39 Segment CropEnergies: Outlook 2015/16 Revenues Operating Result Restructuring Temporaryshutdownproductionat sitewilton, UK, leadstodecreasein production of bioethanol, food and animal feed Corresponding revenue decrease to above 600 mn (Previous year: 764 mn ) Current ethanol price level above full year expectation. Ongoing high volatility expected High price sensitivity; 10 price change per cubicmeter bioethanol unfolds about 7 mn earnings impact (excl. capacity Ensus) Temporary shutdown site Wilton reduces risk profile Operating result is expected in a range of 70 to 90 mn (Previous year: -11 mn ) EBITDA in rangeof 105 to 125 mn (Previous year: 25 mn ) 2016/17: Current forwardprice level suggests 30 to 70 mn operating result Temporary special charges during shutdown of Wilton plant up to 20 mn Südzucker Group, page 39

40 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2015/16 page Outlook 2015/16 page Appendix Long-term development and key figures page 69 Additional information page 80 Südzucker Group, page 40

41 Segment Fruit: Key figures* (mn ) 2011/ / / /15 Revenues EBITDA EBITDA-Margin 7,9% 7,3% 9,0% 9,8% Operating profit Operating Margin 4,1% 4,0% 5,5% 6,1% Restructuring and special items Income from operations (EBIT) Investments Fixed Assets Financial Assets Capital Employed RoCE 4,7% 5,0% 8,1% 8,4% * IFRS 11 adjusted; since 2013/14 income from companies consolidated at equity included in EBIT Südzucker Group, page 41

42 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: Largest manufacturing fruit juice concentrates in Europe (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 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) Further growth via fruit juice concentrates merger Reorganisation measures in division fruit preparations in Central Europe Fourth US facility for fruit preparations started operation in FY 2014/15 Total investments 30 mn Production capacity 45,000 tonnes annually Production facility AGRANA FruitS.A.S. Fruit preparations ~75% of segment revenues ⅓of worldmarket AGRANA Internationale Verwaltungs- und Asset-Management GmbH 25 facilities worldwide AUSTRIA JUICE GmbH Fruit juice concentrates ~25% of segment revenues Largest manufacturing fruit juice concentrates in Europe 14 facilities worldwide Südzucker Group, page 42

43 Segment Fruit: Production facilities USA* Europe** Herk-De-Stad, Belgium Austria Fourth production site in Lysander since March 2014 Market growth leads to higher utilization * Fruit preparations ** Fruit preparations and fruit juice concentrates Südzucker Group, page 43 European factory structure optimization Restructuring project of DirafrostFFI N.V., Herk-De-Stad, Belgium Streamlining of location structure in Austria

44 Segment Fruit: Outlook 2015/16 Revenues Division fruit juice concentrates: revenue decline Division fruit preparations: Higher volumes and revenue increase Revenues at least on prior year s level (Previous year: 1,062 mn ) Operating Result Division fruit juice concentrates: lower earnings contribution Division fruit preparations: Higher earnings as volumes grow Operating result below prior year s level (Previousyear: 65 mn ) Südzucker Group, page 44

45 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2015/16 page Outlook 2015/16 page Appendix Long-term development and key figures page 69 Additional information page 80 Südzucker Group, page 45

46 Group income statement 3 rd quarter 1 st -3 rd quarter (mn ) 2015/ /15 +/- in % 2015/ /15 +/- in % Revenues , ,4 EBITDA , ,7 EBITDA margin 10,7% 7,1% 8,3% 7,1% Depreciation , ,2 Operating result > ,6 Operating margin 3,9% 1,6% 4,0% 3,3% Restructuring costs/special items -4-1 > Result from companies consolidated at equity > 100 Result from operations > ,2 Net earnings for the period attributable to Südzucker shareholders ,5 Earnings per share ( ) 0,23-0,04-0,45 0,33 36,4 Cash flow , ,1 Investments in fixed assets* , ,2 Net financial debt ,1 Employees ,6 * Including intangible assets Südzucker Group, page 46

47 Financial Highlights 9M 2015/16 Group revenuesdeclinedby5 % to4,949 (5,233) million Operating resultincreased14 % to198 (174) million Cash flowdeclined11 % to342 (385) million Earningsper shareincreasedto0.45 (0.33) Net financialdebtincreasedby150 million to417 (267) million Net financialdebtas% of equity9 (6) % Equity ratiostill on high levelat 54 (53) % Südzucker Group, page 47

48 Segment Sugar: Development 9M 2015/16 3 rd quarter 1 st -3 rd quarter (mn ) 2015/ /15 +/- in % 2015/ /15 +/- in % Revenues , ,7 EBITDA , ,3 EBITDA margin 5,7% 4,1% 2,6% 5,2% Depreciation , ,8 Operating result , Operating margin -3,7% -2,9% -1,7% 1,7% Revenues: At the beginning of the 2014/15 sugar marketing year in October 2014, quota sugar sales revenues in the EU again fell significantly. This decline is now reflected in the year-over-year comparison. Export prices for non-quota sugar were lower than last year, too. Sugar volume lower due to lower export volumes. Operating result: As expected, operating result was negative at -39 (44) million. Even though quota sugar sales revenues have now stabilized, they are still sharply lower than last year, which is the main reason for the earnings decline. Südzucker Group, page 48

49 Segment Special Products: Development 9M 2015/16 3 rd quarter 1 st -3 rd quarter (mn ) 2015/ /15 +/- in % 2015/ /15 +/- in % Revenues , ,8 EBITDA , ,3 EBITDA margin 15,3% 12,4% 13,6% 10,5% Depreciation , ,0 Operating result , ,5 Operating margin 11,2% 8,3% 9,4% 6,3% Revenues: Growthdriven by positive volumes development in all divisons. Additional contribution from devaluation of euro. Operating result: Sharply higher with all divisions contributing to the increase. The operating result growth was driven by higher volumes, lower raw material costs and recovery of bioethanol prices. Südzucker Group, page 49

50 Segment CropEnergies: Development 9M 2015/16 3 rd quarter 1 st -3 rd quarter (mn ) 2015/ /15 +/- in % 2015/ /15 +/- in % Revenues , ,2 EBITDA 33 7 > > 100 EBITDA margin 21,4% 3,6% 17,6% 3,6% Depreciation , ,8 Operating result Operating margin 15,8% -0,8% 12,5% -1,1% Revenues: Revenues down in spite of the recovery in ethanol sales revenues. This was driven especially by lower production and sales volumes resulting from the plant overhaul in Wanze, Belgium and the temporary shutdown of the plant in Wilton, Great Britain. Operating result: Significantearningsrebound. Reduced volumes were offset by lower net raw material cost, as well as the recovery in ethanol sales revenues. The temporary shutdown of the plant in Wilton, Great Britain, generated cost savings and improved the operating cost structure. Südzucker Group, page 50

51 Segment Fruit: Development 9M 2015/16 3 rd quarter 1 st -3 rd quarter (mn ) 2015/ /15 +/- in % 2015/ /15 +/- in % Revenues , ,0 EBITDA , ,3 EBITDA margin 10,7% 10,6% 9,4% 10,3% Depreciation , ,8 Operating result , ,2 Operating margin 5,7% 6,2% 5,7% 6,7% Revenues: Lowersales revenues and volumes from apple juice concentrates against last year more than offset by sales revenues and volumes growth in the fruit preparations division. Operating result: Significantdecrease.Ongoing positive revenue development in the fruit preparations division more than offset by the sales revenue driven decrease in the fruit juice concentrates margin. Südzucker Group, page 51

52 Income statement(i) 3 rd quarter 1 st -3 rd quarter (mn ) 2015/ /15 +/- in % 2015/ /15 +/- in % Rev enues , ,4 Operating result > ,6 Restructuring costs/special items -4-1 > Result from companies consolidated at equity > 100 Result from operations > ,2 Financial result , ,4 Earnings before income taxes > ,4 Restructuring costs/special items: Mainly driven by segment CropEnergies; mainly relates to the 9M fixed costs of the temporarily closed bioethanol factory in Wilton, Great Britain. Result from companies consolidated at equity: Result from companies consolidated at equity contains the sugar segment's total of 30 (-7) million which relates mainly to its share of earnings from British trading company ED&F Man Holdings Ltd., StudenGroup and joint-venture distributor Maxi S.r.l. The special products segment's total includes 18 (22) million for its share of earnings from Hungrana Group's starch and bioethanol businesses. Financial result: Financial result at -37 (-31) million. Improved net interest result of -24 (-29) million. Other financial result at -13 (-2) million, especially burdened by valuation-related exchange losses related to financing of Central and South American subsidiaries. Südzucker Group, page 52

53 Income statement(ii) 3 rd quarter 1 st -3 rd quarter (mn ) 2015/ /15 +/- in % 2015/ /15 +/- in % Earnings before income taxes > ,4 Taxes on income > ,6 Net earnings for the year 66 9 > ,1 of which attributable to Südzucker AG shareholders ,5 of which attributable to hybrid capital , ,0 of which attributable to minority interests , ,9 Earnings ngs per share ( ) 0,23-0,04-0,45 0,33 36,4 Taxeson income: Tax rate was 22 % (22) % Minority interests: The co-owners of AGRANA and CropEnergies account for most of the other minority interests share of net earnings Earningsper share(eps): Decreasedto0.45 (0.33 ) Südzucker Group, page 53

54 Cash flow statement 3 rd quarter 1 st -3 rd quarter (mn ) 2015/ /15 +/- in % 2015/ /15 +/- in % Cash flow , ,1 Increase (-)/ Decrease (+) in working capital , ,6 Investments in fixed assets Sugar segment , ,9 Special products segment , ,9 CropEnergies segment , ,4 Fruit segment , ,4 Total investments in fixed assetssets * , ,2 Investments in financial assets/acquisitions ac itions ,5 Total investments , ,5 Increases in stakes held in subsidiaries ,0 Capital increase/dec reas e Dividends paid -7-1 > ,1 * Including intangible assets Cash flow: Cash flow at 342 (385) million and came in at 6.9 (7.4) % of revenues. Working Capital: Cash inflow of 254 million came primarily from sale of inventories from the 2014 campaign. The buildup of sugar inventories from the new 2015 campaign was offset by a simultaneous increase in liabilities toward beet farmers as of 30 November Investments: Sugar: Mainly replacement spending and investments to improve energy efficiency. Special products: Primarily due to construction of starch factory in Zeitzand commissioning of biomass boiler at the BENEO site, Chile. CropEnergies: Optimization of production systems. Fruit: Mainly in fruit preparations area. Südzucker Group, page 54

55 Balance sheet (mn ) /- in % Assets Non-current assets ,6 Current assets ,7 Total assetss ,4 Liabilities and s hareholders' equity Shareholders' equity ,0 Non-current liabilities ,4 Current liabilities ,7 Total liabilities and s hareholders' equity ,4 Net financial debt ,1 Equity ratio 54% 53% Net financial debt in percent of equity (gearing) 9% 6% Current assets: Reduction of 235 million. Main reason is reduction in inventories, especially in segment sugar. Net financial debt: Reduction of 176 million to 417 million since beginning of business year. During the same period last year, net financial debt was reduced by 269 million from 536 million on 28 February 2014 to 267 million on 30 November The reasons for the larger debt repayment last year were the higher cash flow of 385 million, and especially the larger seasonal cash inflow of 351 million from working capital. Südzucker Group, page 55

56 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2015/16 page Outlook 2015/16 page Appendix Long-term development and key figures page 69 Additional information page 80 Südzucker Group, page 56

57 Cost savings and other measures (I)* Organization Factory structure Portfolio Simplification of processes and rationalization of management structures Adjustment to new market environment Optimization Process review of entire value chain and identification of redundancies Centralization of administrative tasks Optimization factory structure Increase in Utilization Extraction of inter segmental synergies Identification of new profitable business areas Internationalisation Phase of high capex largely fulfilled Reduction of administration costs Reduction fix and maintenance costs Capex reduction Südzucker Group, page 57 * Preliminary status of the continuous process of cost savings and other measures

58 Cost savings and other measures (II)* Organization Factory structure Portfolio Trimming of sugar administration Belgium Centralization global sugar sales Optimization logistic structures sugar Bundling animal feed sales Bundling groupwide gluten sales at BENEO Promotion new pricing model CropEnergies Fruit: Trimming European management structure Review IT-structure Closure raw sugar refinery Marseille Closure sugar packaging Regensburg PortionPack: Restructuring Belgium/Netherlands BENEO: Optimization energy concept Synergies multi-site Zeitz CropE: Mothballing Ensus Fruit preparations: Consolidation factory structure Europe Value chain improvement Extension sugar exports from 1 Oct Construction starch factory Zeitz Freiberger distribution activities USA Commissioning neutral alcohol plant Zeitz Commissioning fourth fruit preparations plant USA Südzucker Group, page 58 * Preliminary status of the continuous process of cost savings and other measures

59 Cost savings and other measures (III)* Capex(mn mn ) Cost savings(mn mn ) ~120 ~100 ~35 ~70 ~30 ~400 ~400 ~40 ~25 ~300 <300 ~10 ~70 ~85 ~30 ~ / /16e 2016/17e 2017/18e 2014/ /16e 2016/17e 2017/18e Segment sugar Other segments * Preliminary status of the continuous process of cost savings and other measures Südzucker Group, page 59

60 Outlook 2015/16 (I) Revenues 2014/ /16e Operating Result 2014/ /16e Sugar 3.2 bn 7 mn -60 to-80 mn Special Products 1.7 bn 120 mn >145 mn CropEnergies 764 mn > 600 mn -11 mn 70 to90 mn Fruit 1.1 bn min. prev. year 65 mn < 65 mn Group bn bn 181 mn mn Südzucker Group, page 60

61 Outlook 2015/16 (II) 2014/ /16e 212/13e EBITDA 453 mn ~ mn Investments Fixed Assets Step-up subsidiaries 386 mn 33 mn * ~ 400 mn - RoCE 3.1 % Südzucker Group, page 61 * Purchase Agrana bioethanol minorities

62 Outlook 2015/16 (III) 2014/ /16e 212/13e Net Financial Debt Cash flow 593 mn 389 mn mn > 450 mn Cash flow / Revenues 5.7 % > 6 % Equity ratio ~ 53 % > 53 % Südzucker Group, page 62

63 Outlook 2015/16 (IV)* 1,632 Net Financial Debt Cash Flow 1, mn > / / / / / / / /16e NFD/CF 3.2x 1.9x 1.4x 1.0x 0.5x 0.8x 1.5x ~ x 1.6x Liquidity (mn mn ) 1,740 2,452 2,184 2,175 2,648 2,444 2,417 ~2,400 * IFRS 11 adjusted since 2013/14 Südzucker Group, page 63

64 Summary: Financial Year 2015/16e Sugar Special Products CropEnergies EU framework reduces latitude until 2017, e.g. volume limit, minimum beet price, export restrictions Ongoing burdened by difficult market environment, only slight increase in yearly contracts realized Expectation of earnings increase against excellent previous year. Capacity extension starch at Zeitz site expected to start in 2016/17 (start-up loss) Positive signalling from EU blending decision; improved ethanol price level leads to strong 9M earnings and confirmation of full year outlook Fruit Lower fruit juice concentrates sales revenues leads to earnings decrease Stable net debt, cost saving measures, investmentsin future growth, form basis to achieve mid term targets Südzucker Group, page 64

65 Mid term Outlook (I) Group Operating Result Fruit Special Products Crop Energies Volume growth parallel to market growth Cost savings Market growth Normalisation ethanol pricing Restart Ensus in conjunction with efficiency gains ~ 550 mn mn Sugar Commissioning Zeitz Market growth Cost savings 2015/16e Stopof market restrictions from 2017, e.g. volume limits, minimum beet prices, exports Full capacity utilization/cost savings Market equilibrium Mid term Megatrends intact (population growth, increase in per-capita income...) Südzucker Group, page 65

66 Mid termoutlook (II) Group EBITDA and Capex ~ 400 mn ~ 850 mn Room for manoeuvre ~ mn Growth Main- tenance Main- tenance ~250 mn EBITDA Capex EBITDA Capex 2015/16e mid term Südzucker Group, page 66

67 Executive Summary Challenging year segment sugar Segments special products and fruit as reliable earnings contributor Segment CropEnergies with earnings increase due to ethanol price improvement Successful establishment of basis to exploit future opportunities: Positioning for time beyond abolishment of sugar market order Adjustment of cost and risk structure Investment in new capacities/ future growth Continuatation of solid financing policy(duration, balance sheet key ratios, liquidity) Südzucker Group, page 67

68 Agenda 1. Overview and strategic objectives page 4 2. Financing page Development of Segments Sugar page 15 Special Products page 28 CropEnergies page 36 Fruit page41 4. Financial Highlights 9M 2015/16 page Outlook 2015/16 page Appendix Long-term development and key figures page 69 Additional information page 80 Südzucker Group, page 68

69 Financing maturity profile (as asof 30 November 2015) April 2017/19/21/22 Agrana promissory note, 126 mn March % Bond 2011/2018, 400 mn 2018/20 Syndicated loan, mn Perpetual Hybrid Bond 2005/perpetual, 700 mn Issuer call right 30 June 2015 at the earliest. Pursuant to 6 (5) and (6) of conditions of issue the exercise of the call right is subject to having issued, within the twelve month precedingthe redemption becoming effective, replacement capital (parity and/or junior securities and/or shares) against issue proceeds at least equal to the amounts payable upon redemption. Perpetual Commercial Paper-Program, perpetual, 600 mn Drawnlines: 0mn Südzucker Group, page 69

70 Südzucker withstrong capital market presence Bonds 8% 27% Financial liabilities* 65% Liabilities to banks Others Bonds Z&S** (86%) Zucker Invest GmbH (10%) Südzucker indirectvia Z&S (43%) Agrana Share Südzucker SZVG* (56%) Südzucker direct(~7%) Free float (7%) SZVG* (7%) Free float (34%) Crop Energies Südzucker (69%) Free float (24%) * Süddeutsche Zuckerrübenverwertungs-Genossenschaft eg ** Z&S Zucker und Stärke Holding AG (~50% Südzucker, ~50% ZBG (Zucker-Beteiligungsgesellschaft m.b.h.)) (mn mn ) Due date Coupon Nominal value Key figures asof 29 February 2016 Bond 2011/ % 400 Hybrid bond 2005/perpetual ** *** 700 * as of 30 November 2015 incl. hybrid bond ** Since30 June 2015: bondcanbecalledandredeemedquarterlyat nominal value *** Since 30 June 2015: quarterly variable interest payment, 3M Euribor plus 3.10 % p.a. Market capitalization: 2.83 bn (MDAX rank 32) Free-float market cap.: 0.96 bn (MDAX rank 44) Share-turnover(12 m Jan 2016):2.63 bn (rank 25) -trading volume/day(12 months): ~1.4 mn shares Südzucker Group, page 70

71 Long-term development(i)* (mn ) 2004/ / / / / / / / / / / /16e Revenues EBITDA EBITDA-Margin 15,0% 12,5% 11,8% 8,5% 8,3% 11,3% 12,6% 14,5% 15,8% 11,8% 6,7% Operating profit Operating Margin 10,8% 8,4% 7,3% 4,0% 4,4% 7,0% 8,5% 10,7% 12,3% 8,3% 2,7% Income from operations (EBIT) ** Earnings before income taxes (EBT) Net earnings thereof to SZ AG shareholders Market capitalization Closing price on February 28/29 16,18 22,21 15,97 14,50 13,66 17,06 19,90 21,75 33,55 20,15 13,63 Earnings per share ( ) 1,67 1,36-1,72 0,10 0,86 1,06 1,33 1,99 3,08 1,37 0,10 Dividend per share ( ) 0,55 0,55 0,55 0,40 0,40 0,45 0,55 0,70 0,90 0,50 0,25 Cash flow > 450 Investments total ~ 400 Capital Employed RoCE 11,3% 8,6% 8,8% 4,7% 5,2% 7,5% 9,8% 13,2% 16,3% 10,6% 3,1% Total Assets Equity Equity Ratio 38,1% 47,1% 42,4% 41,7% 41,9% 46,5% 50,8% 47,9% 53,7% 53,4% 52,6% > 53% Net Financial Debt (NFD) Gearing (NFD/Equity) 61,1% 31,5% 24,1% 45,7% 50,5% 30,9% 23,2% 19,9% 9,8% 11,6% 13,3% *** * IFRS 11 adjusted; since 2013/14 income from companies consolidated at equity included in EBIT ** Extraordinary impact from Goodwill impairment loss *** Capex (excluding investments in financial assets) Südzucker Group, page 71

72 Long-term development(ii)* Cash flow (mn ) Revenues (bn ) > Net Financial Debt (mn ) Operating Profit (mn ) 811 1,508 1,632 1, NFD/CF 1,5x 1,5x 3,0x 3,2x 1,9x 1,4x 1,0x 0,5x 0,8x 1,5x * IFRS 11 adjusted since 2013/14 Sugar Special Products CropEnergies Fruit Südzucker Group, page 72

73 Return on Capital Employed(RoCE RoCE) 2014/ /14 (mn ) RoCE RoCE Op. Profit Cap. Employed Südzucker Group 3,1% 10,6% Sugar 0,2% 13,7% Special Products 8,7% 6,3% CropEnergies -2,2% 6,4% Fruit* 8,4% 8,1% * Adjustment segment fruit: Goodwill book value redirected to participation level of parent company Sugar: Significant reduction exclusively earnings driven Special Products: Significant increase exclusively earnings driven CropEnergies: Fruit: Group: Decrease due to lower earnings despite reduction in capital employed Further improvement via slight reduction in capital employed Significant earnings reduction and stable capital employed lead to significant decreasein RoCE Südzucker Group, page 73

74 Return on Capital Employed(RoCE RoCE) 2010/ / / /14* 2014/ /16e Sugar 10.4% 17.1% 22.4% 13.7% 0.2% Segments Special Prod. CropEnergies 10.8% 8.7% 10.7% 10.2% 9.5% 17.3% 6.3% 6.4% 8.7% -2.2% Fruit 6.7% 4.7% 5.0% 8.1% 8.4% RoCE 9.8% 13.2% 16.3% 10.6% 3.1% Group Operating Profit 521 mn 751 mn 972 mn 622 mn 181 mn mn Capital Employed 5,314 mn 5,707 mn 5,950 mn 5,873 mn 5,877 mn Südzucker Group, page 74 * IFRS 11 adjusted since 2013/14

75 Breakdown of Capital Employed(2014/15) Breakdown by assets Breakdown by segments 21% 13% 9% 48% 5,877 mn 5,877 mn 55% 31% 23% Goodwill Working Capital Fixed assets Sugar CropEnergies Special Products Fruit Südzucker Group, page 75

76 Liquidity profileend end of period* (mn ) Q3 2015/16 Q2 2015/16 Q1 2015/16 Q4 2014/15 Q3 2014/15 Net financial f debt Cash & Cash equivalents / securities Gross financial debt Long-term financial debt Short-term f inancial debt Bank credit lines undrawn Syndicated l oan undrawn Syndicated l oan Agrana undrawn Commercial paper program undrawn Bank credit lines (undrawn) Cash & cash equivalents / securities Syndicated loan (undrawn) Commerci al paper (undrawn) = Total liquidity res erves * IFRS 11 adjusted Südzucker Group, page 76