Suedzucker Ag · XETR:SZU

Suedzucker — Südzucker Group — Debt Investor Presentation (November 2016)

30 slides from Suedzucker's debt investor presentation, Nov 21, 2016

  1. Slide 1: Südzucker Group Investor Update Fixed Income, November 2016

    Südzucker Group Thomas Kölbl (CFO) Investor Update Fixed Income, November 2016 Südzucker Group, page 1

  2. Slide 2: Disclaimer

    FINANCIAL TRANSPARENCY 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

  3. Slide 3: Agenda

    FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Brief segmental overview page 9 3. Financial Highlights H1 2016/17 page 20 4. Financing and Liquidity page 23 Südzucker Group, page 3

  4. Slide 4: Südzucker Group at a glance

    FINANCIAL TRANSPARENCY Südzucker Group at a glance  Global operating German food Group Revenues 6.4* bn € group with long-standing corporate history:  1837: Foundation of first sugar company  1926:Foundation of Sugar Süddeutsche Zucker-AG (45%)  Revenues: 6,387 mn €  Operating result: 241mn € F

  5. Slide 5: Leading Market Positions and clear Strategic Objectives

    FINANCIAL TRANSPARENCY Leading Market Positions and clear Strategic Objectives Segment/Division Market Position Strategy / Main Drivers  Further enhancement of leading market Sugar #1 in Europe position in Europe; especially in deficit markets  Expedite internationalization; partnership with ED&F

  6. Slide 6: Portfolio benefits from long-term global megatrends

    FINANCIAL TRANSPARENCY Portfolio benefits from long-term global megatrends mn USD t 12,000 8,000 218,000 per capita income sugar consumption worldwide 178,000 8,000 worldwide 6,000 138,000 98,000 4,000 4,000 population growth worldwide 58,000 emerging markets 2,000 18,000 ,0 Sources: United Nations,

  7. Slide 7: Advantage of a diversified portfolio in changing markets

    FINANCIAL TRANSPARENCY Advantage of a diversified portfolio in changing markets Operating Result in mn € 1.000 800 600 400 200 Sugar Special Products CropEnergies Fruit 0 Südzucker Group, page 7

  8. Slide 8: Agenda

    FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Brief segmental overview page 9 3. Financial Highlights H1 2016/17 page 20 4. Financing and Liquidity page 23 Südzucker Group, page 8

  9. Slide 9: Segment Sugar

    FINANCIAL TRANSPARENCY Segment Sugar (mn €) 2015/16 2014/15 Δ Revenues 2.855 3.228 -373 -11,6% EBITDA 48 133 -85 63,0% EBITDA-Margin 1,7% 4,1% Operating Result -79 7 -86 Operating Margin -2,7% 0,2% Restructuring and special items 4 -7 11 Result from companies consolidated at equity 32 -5 37 Result f

  10. Slide 10: Segment Sugar: Europe

    FINANCIAL TRANSPARENCY Segment Sugar: Europe  European market leader Great Britain  Pan-European sales and logistic strategy Poland Germany  Sustainable production in highest Belgium beet-yield areas in Europe 7 Czech Republic Slovakia Moldova  Cost savings throughout entire Austria value chain

  11. Slide 11: EU Sugar Market

    FINANCIAL TRANSPARENCY EU Sugar Market EU sugar policy New market framework until 30 September 2017 1 October 2017  Sugar and isoglucose quota  Elimination of sugar and isoglucose quota  Quota sugar: Minimum beet price  No minimum beet price  Contractual obligation between industry and  Contra

  12. Slide 12: Participation in ED&F Man offers a global footprint

    FINANCIAL TRANSPARENCY Participation in ED&F Man offers a global footprint  Long standing successful history (founded 1783)  Truely global footprint (~6,500 employees in 60 countries)  Beneficiary of long-term growth in global sugar demand  Approx. 10 mn t global sugar trading volume; one of the

  13. Slide 13: Segment Special Products

    FINANCIAL TRANSPARENCY Segment Special Products (mn €) 2015/16 2014/15 Δ Revenues 1.791 1.724 67 3,9% EBITDA 246 192 54 27,5% EBITDA-Margin 13,7% 11,2% Operating Result 171 120 51 41,9% Operating Margin 9,5% 7,0% Restructuring and special items -2 -3 1 Result from companies consolidated at equity 23

  14. Slide 14: Segment Special Products: Overview

    FINANCIAL TRANSPARENCY Segment Special Products: Overview  Segment special products shows very solid Revenues (mn €)** fundamental development and record result* 1,862 1,806 1,791  Growth based on intact mega trends: 1,740 1,724 1,575  Unchanged trend to alternative and functional food ingredient

  15. Slide 15: Segment CropEnergies

    FINANCIAL TRANSPARENCY Segment CropEnergies (mn €) 2015/16 2014/15 Δ Revenues 658 764 -106 -13,8% EBITDA 122 25 97 >100% EBITDA-Margin 18,5% 3,3% Operating Result 87 -11 98 Operating Margin 13,2% -1,5% Restructuring and special items -18 -28 10 Result from companies consolidated at equity 0 0 0 Resu

  16. Slide 16: Segment CropEnergies

    FINANCIAL TRANSPARENCY Segment CropEnergies  Start build-up of business area 2004  One of the leading bioethanol producers in Europe Wilton  Capacities: Rotterdam Duisburg  1.3 mn m³ p.a. fuel bioethanol Loon-Plage Zeitz Houston Wanze  150,000 m³ p.a. bioethanol for technical and traditional ap

  17. Slide 17: Segment Fruit

    FINANCIAL TRANSPARENCY Segment Fruit (mn €) 2015/16 2014/15 Δ Revenues 1.083 1.062 21 2,0% EBITDA 102 103 -1 -1,8% EBITDA-Margin 9,4% 9,8% Operating Result 62 65 -3 -5,2% Operating Margin 5,7% 6,1% Restructuring and special items -3 -6 3 Result from companies consolidated at equity 0 0 0 Result from

  18. Slide 18: Segment Fruit – with leading positions in both divisions

    FINANCIAL TRANSPARENCY 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 manufacturer of fruit juice concentrates in Europe (market leader

  19. Slide 19: Agenda

    FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Brief segmental overview page 9 3. Financial Highlights H1 2016/17 page 20 4. Financing and Liquidity page 23 Südzucker Group, page 19

  20. Slide 20: Financial Highlights – H1 2016/17

    FINANCIAL TRANSPARENCY Financial Highlights – H1 2016/17  Group revenues decline by 4 % to 3,205 (3,331) million €  EBITDA increased 31% to 310 (236) million €  Operating result increased 56 % to 209 (134) million €  Cash flow increased 24 % to 268 (216) million €  Earnings per share increased

  21. Slide 21: Summary segments H1 2016/17

    FINANCIAL TRANSPARENCY Summary segments H12016/17 Südzucker Group, page 21

  22. Slide 22: Agenda

    FINANCIAL TRANSPARENCY Agenda 1. Overview and strategic objectives page 4 2. Brief segmental overview page 9 3. Financial Highlights H1 2016/17 page 20 4. Financing and Liquidity page 23 Südzucker Group, page 22

  23. Slide 23: Several capital market anchors

    FINANCIAL TRANSPARENCY Several capital market „anchors“ Market Cap and Shareholder Structure* Zucker Free float Invest GmbH (34%) (10%) Südzucker ~ 4.3 bn € Südzucker indirect via Z&S (43%) SZVG** (56%) Südzucker Südzucker direct (69%) (~7%) Crop Agrana Energies ~ 1.5 bn € Free float ~ 414 mn € (7%)

  24. Slide 24: Rating

    FINANCIAL TRANSPARENCY Rating Rating agency Long-term rating Short-term rating BBB- * A–3* Positive Outlook ** Baa 2 *** P–2 Stable Outlook **** * since 15 June 2015 ** since 21 June 2016 *** since 17 June 2014 **** since 20 May 2016 Südzucker Group, page 24

  25. Slide 25: Strong debt reduction despite high capex volume

    FINANCIAL TRANSPARENCY Strong debt reduction despite high capex volume 1,632 Net Financial Debt Cash Flow 1,065 996 854 mn € 791 823 697 606 593 550 > 553 555 - 504 536 480 650 prev. year 464 389 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17e NFD/CF 3.2x 1.9x 1.4x 1.0x 0.5x

  26. Slide 26: Favorable financing maturity profile

    FINANCIAL TRANSPARENCY Favorable financing maturity profile* (mn €) as of 31 August 2016 EUR-Bond 400 Promissory 12 94 14 Note 2016 2017 2018 2019 2020 2021 Syndicated loan 1,050 mn € Commercial Paper Programm 600 mn € (perpetual) Hybrid Bond 700 mn € (perpetual) 5.25 % p.a. fixed before June 2015 p

  27. Slide 27: Unchanged comfortable liquidity position

    FINANCIAL TRANSPARENCY Unchanged comfortable liquidity position* (mn €) 28.02.2013 28.02.2014 28.02.2015 29.02.2016 without IFRS 11 with IFRS 11 with IFRS 11 with IFRS 11 N et financ ial debt - 444 - 536 - 593 - 555 Cas h & Cas h equivalents / s ec uriti es 613 648 681 604 Gros s financ i al debt -

  28. Slide 28: New Issue: Fixed Rate Euro Denominated Notes

    FINANCIAL TRANSPARENCY New Issue: Fixed Rate Euro Denominated Notes  Issuer: Südzucker International Finance B.V., NL  Guarantor: Südzucker AG  Guarantor Rating: BBB- (positive) / Baa2 (stable) S&P/Moody’s  Format: Senior, Unsecured  Status: Bearer Notes  Size: EUR 250 million, sub benchmark 

  29. Slide 29: Executive Summary

    FINANCIAL TRANSPARENCY Executive Summary  Diversified business model supports group in ongoing volatile environment  World market price driven turnaround in segment sugar, but difficult transition period into post-2017-era expected  Solid development in segments special products, CropEnergies and

  30. Slide 30: Investor Relations

    FINANCIAL TRANSPARENCY Investor Relations Financial calender Contact Nikolai Baltruschat 12 January 2017 Head of Investor Relations Q3 – 1st to 3rd quarter report 2016/17 Tel.: +49 (621) 421 – 843 [email protected] 18 May 2017 Press and analysts‘ conference fiscal 2016/17 Bernhard Ju

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