Südzucker Group€¦ · Income from operations (EBIT) 150 104 93 Investments 58 62 166 ... sugar...

Südzucker GroupThomas Kölbl (CFO)

Cheuvreux – German Corporate Conference Frankfurt, January 17-19, 2011

FINANCIAL TRANSPARENCY

Südzucker Group, page 2

Agenda

1. Overview and strategic objectives page 3

2. Development of Segments

Sugar page 7

Special Products page 13

CropEnergies page 21

Fruit page 25

3. Financial Highlights 9M 2010/11 page 28

4. Outlook 2010/11 page 40

5. Appendix

Annual Financial Statement 2009/10 page 43

Long-term development and key figures page 61

Additional information page 68



Südzucker Group at a glanceGroup revenues 5.7 bn € *

Global food company with headquarters and stock quotation in Germany (MDAX, MSCI; Market Cap ~ 4 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



Südzucker Group: Market Position and Strategic Objectives

Segment/Division Market Position Strategy / Main Drivers

Sugar

BENEO

Freiberger

Starch

PortionPack

FruitPreparationsFruit 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 Further enhancement of leading market

position in Europe; especially in deficit markets Internal efficiency gains

#1 worldwide

#1 in Europe

#1 worldwide in Isomaltand Oligofructose

#1 in Europe in frozenPizza (private label)

#1 in Europe in portion packs

One of the leadingplayers in Europe

Leverage strength of core products intoproduct innovations

External growth only via small add-ons feasible

Full exploitation of implemented capacity build-up



about500 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

6.0 bn €4.6 bn €

Rev

enue

sO

p. P

rofit

479 mn €

5.9 bn € - 08/09

233 mn € - 07/08



Agenda



Sugar page 7



Fruit page 25



5. Appendix






Segment Sugar: Key Figures

(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%



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** 168 mn t

3-4 mn t

up to 0.4 mn t

max. ~1.4 mn t

Demand** 166 mn t

*Simplified, excl. isoglucose**F.O. Licht estimate for 2010/11, November 2010

~3-4 mn t



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



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)



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

Higher quota sugar volumes

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 increase in revenues



Agenda



Sugar page 7



Fruit page 25



5. Appendix






(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



Segment Special Products: Key Figures

*adjusted for CropEnergies 2007/08

*



Segment Special Products: strong positions in all divisions

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 for food and non-food industry, isoglucose and AGRANA bioethanolactivities

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 %



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



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



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



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



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



Agenda



Sugar page 7



Fruit page 25



5. Appendix






(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


Capital Employed 525 221 221RoCE 2,3% 8,2% 10,0%

Segment CropEnergies: Key Figures

*since 2008/09 reported as separate segment

*



Segment CropEnergies: Overview

Improvement of political framework EU: Renewable Energies Directive has

been in force since June 2009

Germany: E10 introduced since January 1, 2011

Increased capacity utilisation in Wanze Economies of scale

Successful launch of Gluten andProtiWanze®

Start-up of the CO2 liquefaction plant CT Biocarbonic GmbH (joint venture) Partner: Tyczka Energie GmbH

Annual capacity of 100,000 tonnes of

biogenic CO2

First customers already suppliedSource: EU Member States Reports, F.O. Licht, CropEnergies

Quarterly development (2010/11) – Op. profit (mn €)

EU demand/potential and production (bioethanol)

2.3

15.0 14.6

Q1 Q2 Q3



Segment CropEnergies: Outlook 2010/11

Increase in utilization at BioWanze leads to higher production leveland increase in volumes of bioethanol as well as by-productsRevenues

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 40 (12) million €

Increase in revenues



Agenda



Sugar page 7



Fruit page 25



5. Appendix






Segment Fruit: Key Figures

(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


Capital Employed 650 679 781RoCE 5,5% neg. 5,6%



Segment Fruit: Outlook 2010/11

Revenues Impulse via innovation and development of new markets in both

divisions

Market recovery facilitates volume increase in division fruitpreparations

Recovering sales revenues in fruit juice concentrate during courseof the year due to weather-driven lower apple harvest

Operating Profit

Further improvement in operating profit mainly supported byvolume increase in fruit preparation as well as normalizedmargins in fruit juice contentrate divisions

Revenues above previous year



Agenda



Sugar page 7



Fruit page 25



5. Appendix






Group income statement *

* This presentation includes percentage and number rounding

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 1,599 1,503 6.4% 4,667 4,438 5.2%EBITDA 236 229 3.4% 613 490 25.1%

EBITDA margin 14.8% 15.2% 13.1% 11.0%Depreciation -102 -99 3.0% -197 -181 8.5%Operating profit 134 129 3.6% 416 308 34.8%

Operating margin 8.4% 8.6% 8.9% 6.9%Restructuring costs and special items 0 -3 - -20 2 -Income from operations 134 127 5.7% 396 311 27.5%Net earnings for the period attributable to Südzucker shareholders 66 57 15.7% 188 159 18.1%Earnings per share (€) (undiluted) 0.34 0.30 13.9% 0.99 0.84 18.1%Cash flow 228 176 29.6% 497 419 18.7%Investments in fixed assets 48 50 -3.1% 159 151 5.4%Net financial debt (as of reporting date) 704 893 -21.2%Average number of employees 18,052 17,756 1.7%

3rd quarter 1st - 3rd quarter



Financial Highlights 9M 2010/11 *

9M 2009/10 9M 2010/11

Revenues 4,438 mn € 4,667 mn €

Operating Profit 308 mn € 416 mn €

893 mn € 704 mn €

Cash flow

Earnings per share

419 mn €

0.84 €

497 mn €

0.99 €

Net Financial Debt

* 9M group revenues and group operating profit reported on 17 December 2010



Segment Sugar: Sugar production 2010 *

Due to alternating weather and growing conditions across Europe, previous year‘sextraordinary high group sugar yield of 12.3 t/ha was unreproducible and reached 11.4 t/ha.

As a consequence, preliminary campaign estimates show a reduction in sugar productionof approximately 9 % against previous year‘s high level.

* Sugar production (incl. refining) campaign 2010 (preliminary)

1,000 tonnes 2010 2009 Change abs. Change %Germany 1,494 1,822 -328 -18.0France 939 962 -23 -2.4Belgium 485 616 -131 -21.3Austria 453 414 39 9.4Poland 374 410 -36 -8.8Romania 136 157 -21 -13.4Czech Republic 135 139 -4 -2.9Hungary 117 108 9 8.3Moldova 75 33 42 > 100,0Bosnia 63 50 13 26.0Slovakia 62 58 4 6.9Total 4,333 4,769 -436 -9.1



Segment Sugar: Development 9M 2010/11

Revenues: Stable revenue development in Q3 following H1 which was marked by an increase in non-quota sugar exports and lower quota sugar sales revenues.

Operating profit: Lower costs compensating for the lower sales revenues since 1st of October2009, have fully materialized in Q3. Furthermore the increase in operatingprofit was strongly supported by the significant increase in quota sugarvolumes in H1 and especially by the higher non-quota sugar exports in Q1.

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 865 852 1.6% 2,537 2,507 1.2%EBITDA 138 135 1.7% 328 264 24.2%

EBITDA margin 15.9% 15.9% 12.9% 10.5%Depreciation -67 -68 -1.5% -92 -91 1.9%Operating profit 71 67 4.9% 236 174 35.8%

Operating margin 8.2% 7.9% 9.3% 6.9%




Segment Special Products: Development 9M 2010/11

Revenues: In light of higher volumes, all divisions contributed to the increase in revenues.

Operating profit: Despite the expected lower earnings contribution in Q3, 9M performancestill shows an increase in operating profit against previous year‘s level. In division starch, the ongoing volume uplift and most recent salesrevenue increase were enough to compensate for the increase in rawmaterial prices.

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 404 363 11.5% 1,166 1,051 11.0%EBITDA 54 61 -10.9% 168 158 6.5%

EBITDA margin 13.3% 16.7% 14.4% 15.0%Depreciation -19 -18 5.1% -55 -52 6.5%Operating profit 35 43 -17.5% 112 106 6.6%





Segment CropEnergies: Development 9M 2010/11 *

Revenues: The increase in revenues was mainly driven by higher volumes atthe production facility in Wanze.

Operating profit: In light of the higher volume in ethanol and respective by-products, operating profit has been strongly lifted. The spread betweenethanol and grain prices was nearly unchanged.

* CropEnergies has reported 9M revenues and operating profit on 17 December 2010

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 125 92 35.9% 325 272 19.3%EBITDA 22 9 > 100.0% 55 17 > 100.0%

EBITDA margin 17.8% 10.2% 16.8% 6.2%Depreciation -8 -5 52.0% -23 -13 70.1%Operating profit 15 4 > 100.0% 32 4 > 100.0%





Segment Fruit: Development 9M 2010/11

Revenues: Higher volumes in H1 overcompensated the sales revenue declinein the first nine months.

Operating profit: Though 9M earnings still show a significant improvement againstprevious year‘s level, higher sales revenues were not enough tocompensate for the lower volumes in Q3 leading to a reduction in earnings in the quarter.

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 205 197 4.4% 640 608 5.3%EBITDA 23 23 -3.2% 62 51 21.5%

EBITDA margin 11.0% 11.9% 9.7% 8.4%Depreciation -9 -9 5.7% -27 -26 3.9%Operating profit 14 15 -8.3% 35 25 39.2%





Income statement (I)

Restructuring costs and special items: Unchanged in comparison to H1 level.

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 currencyeffects of the prior year and the discounting of the EU restructuring assistance receivable. Due to a reduction in average net debt, financial expenses were reduced from 122 million€ to 95 million €.

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 1,599 1,503 6.4% 4,667 4,438 5.2%Operating profit 134 129 3.6% 416 308 34.8%Restructuring costs and special items 0 -3 - -20 2 -Income from operations 134 127 5.7% 396 311 27.5%Income from associated companies 0 0 - 2 1 52.8%Financial result -24 -27 -10.9% -70 -35 > 100.0%Earnings before income taxes 111 100 10.5% 328 277 18.5%




Income statement (II)

Taxes on income: The tax rate came in at 21 %.

Minority interests: 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 18 % to 0.99 €.

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Earnings before income taxes 111 100 10,5% 328 277 18,5%Taxes on income -17 -22 -24,2% -69 -60 15,1%Net earnings for the year 94 78 20,2% 259 217 19,5%of which attributable to Südzucker shareholders 65 57 15,7% 188 159 18,1%of which attributable to hybrid capital 7 7 -1,5% 20 20 -0,5%of which attributable to minority interests 22 15 47,3% 51 38 35,9%

Earnings per share (€) 0,34 0,30 13,9% 0,99 0,84 18,1%




Cash flow statement

Cash flow: The improvement follows the development in operating 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 tomaintenance level.

(mn €) 2010/11 2009/10 ∆Cash flow 497 419 18.7%Decrease (+) in working capital 165 554 -70.2%Investments in fixed assets

Sugar segment 88 79 10.7%Special products segment 39 34 15.3%CropEnergies segment 19 24 -22.8%Fruit segment 13 13 0.0%

Total investments in fixed assets 159 151 5.4%Investments in financial assets 6 22 -74.0%

Dividends paid -143 -133 7.3%

1st - 3rd quarter



Balance sheet

Reduction in current liabilities leading to reduction in net financial debt: The reduction in current liabilities is driven by the redemption of the 300 million € bond in

June 2010. Further improvement in financial ratios:

The equity ratio has seen a further improvement to 48%. The improvement in gearing reflects both, the further reduced net financial debt level and

the increase in equity.

(mn €) 30.11.2010 30.11.2009 ∆AssetsNon-current assets 4,050 4,072 -0.5%Current assets 3,516 3,570 -1.5%Total assets 7,566 7,642 -1.0%Liabilities and shareholders' equityShareholders' equity 3,653 3,416 7.0%Non-current liabilities 1,931 1,946 -0.8%Current liabilities 1,982 2,280 -13.1%Total liabilities and shareholders' equity 7,566 7,642 -1.0%Net financial debt 704 893 -21.2%Equity ratio 48% 45%Net financial debt in percent of equity (gearing) 19% 26%



Agenda



Sugar page 7



Fruit page 25



5. Appendix






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 € **



Operating Profit2009/10 2010/11e

Group: Outlook 2010/11

Sugar

Revenues2009/10 2010/11e

Special Products

CropEnergies

Fruit

Group 1) 5.7 bn € 6.0 bn € 403 mn € about 500 mn €

Investments 2)

Net Financial Debt 1) Revised upwards following preliminary announcement on 17 December 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 €

> 40 mn €



Agenda



Sugar page 7



Fruit page 25



5. Appendix






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 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 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 €



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



(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%


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



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



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



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



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

∆



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

∆



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

∆



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



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


* Adjustment segment fruit: Goodwill book value redirected to participation level of parent company

*



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



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 Empoyed (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%

2010/11e



Breakdown of Capital Employed (2009/10)

Breakdown by assets Breakdown by segments

5,374 mn € 5,374 mn €

23%

28%

49%

Goodwill Working Capital Fixed assets

54%

24%

10%

12%

Sugar Special ProductsCropEnergies Fruit



Outlook 2009/10 Reported 2009/10

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 €

5.7 bn €

403 mn €

216 mn €

deutliche Ergebniserholung1,065 mn €

* excl. investments in financial assets



Agenda



Sugar page 7



Fruit page 25



5. Appendix






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 6.000EBITDA 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 ~ 500

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

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)

***



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

*



Liquidity profile end of period

Südzucker received EU restructuring assistance of 446 mn € in June 2009 for sugar quota return

(mn €) Q3 2009/10 Q4 2009/10 Q1 2010/11 Q2 2010/11 Q3 2010/11

Net financial debt -893 -1,065 -1,065 -776 -704

Cash & cash equivalents / securities 900 695 699 637 721

Gross financial debt -1,793 -1,760 -1,764 -1,413 -1,425

Long-term financial debt -1,186 -1,120 -1,113 -1,083 -1,123

Short-term financial debt -607 -640 -651 -330 -302

Bank credit lines: 1,276 1,234 1,177 1,133 1,062

undrawn 569 558 515 532 445Syndicated 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) 569 558 515 532 445+ Cash & cash equivalents / securities 900 695 699 637 721+ Syndicated loan (undrawn) 600 600 600 600 600+ Commercial paper (undrawn) 600 600 600 600 600= Total liquidity reserves 2,669 2,452 2,414 2,368 2,366



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 Q3: 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 Q3: 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

* as of February 28th, 2010



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



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%



Agenda



Sugar page 7



Fruit page 25



5. Appendix






Revenue by region 2009/10

Germany (29.9 %)

EU 15(48.9 %)

Rest of world(8.3 %)

5,718 mn €EU 12(12.9 %)



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



Südzucker well positioned in „Beet Belt“

Poland

Slovakia

Hungary

Austria

Germany

FranceRomania

Moldova

Czech RepublicBelgium



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 **



Price development for raw and white sugar (NYMEX, LIFFE, EU)

150

250

350

450

550

650

750

13.0

1.20

09

13.0

3.20

09

13.0

5.20

09

13.0

7.20

09

13.0

9.20

09

13.1

1.20

09

13.0

1.20

10

13.0

3.20

10

13.0

5.20

10

13.0

7.20

10

13.0

9.20

10

13.1

1.20

10

13.0

1.20

11

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)



Bioethanol: Further EU support fuels potential

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%

EU: Renewable Energies Directive Mandatory blending rate for renewable

energies of 10% in 2020 in transport sector

Introduction of sustainability criteria (i.e. reduction of greenhouse gas emissions by at least 35%)

Amendment of the Fuel Quality Directive Technical basis for EU-wide

introduction of E10

EU: demand for bioethanol to more than

triple by 2020*

Germany: Introduction of E10 from January 1, 2011 90% of all petrol-engine vehicles can use

E10 fuel without any problems

German market to grow up to 50%

* based on 2009 demand of 4.4 million m3



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 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 – sustainable production

Plant in Wanze: more than 60% greenhouse gas reduction Planz in Zeitz: more than 35% greenhouse gas reduction (excluding CO2 plant) Certification according to REDcert (Renewable Energy Directive certification)

Co-Products Natural hedge versus increasing input cost High-grade protein food and animal feed reduce imports (i.e. soybeans)



Price development wheat and maize (Euronext, LIFFE)

110

120

130

140

150

160

170

180

190

200

210

220

230

240

250

260

13.1

1.20

09

13.1

2.20

09

13.0

1.20

10

13.0

2.20

10

13.0

3.20

10

13.0

4.20

10

13.0

5.20

10

13.0

6.20

10

13.0

7.20

10

13.0

8.20

10

13.0

9.20

10

13.1

0.20

10

13.1

1.20

10

13.1

2.20

10

13.0

1.20

11

€/ t

on

Wheat price (Future contract March 2011)

Price for maize (Future Contract March 2011)



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~35% world market share25 facilities on the globe

Fruit juice concentrates

20% of segment revenues~20% European market share10 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



Segment Fruit: Production facilities



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 calenderPress 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

Südzucker Group€¦ · Income from operations (EBIT) 150 104 93 Investments 58 62 166 ... sugar...

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