Suedzucker Ag · XETR:SZU

Suedzucker — Südzucker Group — Non-Deal Roadshow (November 2008)

71 slides from Suedzucker's roadshow presentation, Nov 10, 2008

  1. Slide 1: Südzucker Group Investor Roadshow – London

    Südzucker Group Thomas Kölbl (CFO) Investor Roadshow – London November 10-11th, 2008

  2. Slide 2: Overview

    FINANCIAL TRANSPARENCY Overview 1. Südzucker group at a glance and strategic objectives page 3 2. Development of Segments page 7 „ Sugar page 7 „ Special Products page 18 „ Fruit page 28 3. Financial Highlights H1 2008/09 page 32 4. Outlook page 39 5. Appendix page 43 „ Annual Financial Statement 20

  3. Slide 3: Südzucker Group at a glance

    FINANCIAL TRANSPARENCY Südzucker Group at a glance Group revenues 5.8 bn € * „ Single global food company with headquarters and stock quotation in Germany Sugar (MDAX) (60 %) „ Approx. 70 % of revenues generated outside Fruit (15 %) Germany Special „ Strong presence in growing region Eastern Europe

  4. Slide 4: Market Position and Strategic Objectives

    FINANCIAL TRANSPARENCY Südzucker Group: Market Position and Strategic Objectives Segment/Division Market Position Strategy / Main Drivers Taking advantage of transition period within the sugar industry via … Sugar #1 in Europe „ … further enhancement of leading market position in Europe „ … internal

  5. Slide 5: Südzucker Group revenues: Past – Present – Future

    FINANCIAL TRANSPARENCY Südzucker Group revenues: Past – Present – Future 2002/03 2007/08 2009/10e 15% 15% 21% 4.4 bn € 5.8 bn € ~ 6.0 bn € 52% 25% 60% 33% 79% Sugar Special Products Fruit „ Proven growth path with CAGR 2002/03 – 2009/10 of > 5% „ Diversification via significant investments into segm

  6. Slide 6: Overview

    FINANCIAL TRANSPARENCY Overview 1. Südzucker group at a glance and strategic objectives page 3 2. Development of Segments page 7 „ Sugar page 7 „ Special Products page 18 „ Fruit page 28 3. Financial Highlights H1 2008/09 page 32 4. Outlook page 39 5. Appendix page 43 „ Annual Financial Statement 20

  7. Slide 7: Segment Sugar: Key Figures

    FINANCIAL TRANSPARENCY Segment Sugar: Key Figures (in mn €) 2007/08 2006/07 2005/06 Revenues 3.464 3.543 3.666 EBITDA 213 413 444 EBITDA-Margin 6,1% 11,6% 12,1% Operating profit 61 259 313 Operating Margin 1,7% 7,3% 8,5% Restructuring and special items -21 -109 -39 Goodwill impairment loss 0 -482 0

  8. Slide 8: Successful reform process leads to market equilibrium

    FINANCIAL TRANSPARENCY Successful reform process leads to market equilibrium* (mn t) Successful reform process Quota reduction: EU overall -30%, Südzucker -22% -2 2 - 1.5 - 0.7 -2 - 3.4 - 0.4 4.0 16 16 18 17 16 14 16 13 12 SMY SMY SMY SMY SMY SMY 2006/07 2005/06 2006/07 2007/08 2008/09 2009/10e (and

  9. Slide 9: Strong position within challenging EU environment

    FINANCIAL TRANSPARENCY Strong position within challenging EU environment … Successful reform of sugar market regime Nordzucker Tereos (9 %) (10 %) British „ After 2 years of transition with slow Sugar momentum in quota renouncements (9 %) leading to high economic pressure Danisco in the whole indust

  10. Slide 10: Offers opportunities in Europe as a future import market

    FINANCIAL TRANSPARENCY … offers opportunities in Europe as a future import market Südzucker exploits new Südzucker quota share - sugar marketing year 2008/09 market opportunities … „ Systematic entry into new import markets and EU member states Poland „ Romania and Bulgaria: Germany 25 % z Productio

  11. Slide 11: Südzucker well positioned in Beet Belt

    FINANCIAL TRANSPARENCY Südzucker well positioned in „Beet Belt“ Poland Germany Belgium Czech Republic Moldova Slovakia Austria France Romania Hungary White sugar yield in the EU 2006/07 t white sugar /ha Südzucker EU sugar production Ø EU-15 11,8 8,5 Ø EU-12 7,7 6,2 Ø EU-27 9,7 7,4 Südzucker Group:

  12. Slide 12: Cooperation with Mauritius strengthens distribution power

    FINANCIAL TRANSPARENCY Cooperation with Mauritius strengthens distribution power „ Exclusive distributor of 400,000 tonnes p.a. white sugar contingent from Mauritius into the EU from 2009 to 2015 „ Imported sugar volume… z …leverages European distribution platform z …protects core production regions

  13. Slide 13: Segment Sugar: Quota renouncements

    FINANCIAL TRANSPARENCY Segment Sugar: Quota renouncements Südzucker- Restructuring Accounting Quota aid Special items Cash inflow kt mn € Financial year Quota before renouncement 4.091 1st wave (until 31.01.2008) 615 305 2007/08 2009/10 2nd wave (until 31.03.2008) 257 141 2008/09 2009/10 Total 872 4

  14. Slide 14: Segment Sugar: Restructuring 2006/07 - 2008/09e

    FINANCIAL TRANSPARENCY Segment Sugar: Restructuring 2006/07 - 2008/09e in light of quota renouncement of 21% (872,000 t) (in mn €) 446 Depreciation 20 10 fixed assets 141 Disposal sugar (2nd 42 quotas wave) 64 22% 45% 406 305 181 (1st wave) ~135 33% 88 (by 09/10) 90 cash- 47 effective (by 07/08) Inc

  15. Slide 15: Segment Sugar: Outlook 2008/09

    FINANCIAL TRANSPARENCY Segment Sugar: Outlook 2008/09 „ Slight decline in revenues due to quota renouncement of Revenues 0.87 mn t „ Reduction in temporary burden induced by market reform, e.g. Operating Profit missing withdrawal in October 2007 „ Normalisation of European sugar market in the course

  16. Slide 16: Segment Sugar: Main drivers 2009/10

    FINANCIAL TRANSPARENCY Segment Sugar: Main drivers 2009/10 „ End of restructuring phase „ No restructuring levy to be paid anymore „ Healthy supply and demand situation within European sugar market „ Challenge to compensate reduction of factory margin 253 €/t *) to 202 €/t **) via further cost reduc

  17. Slide 17: Overview

    FINANCIAL TRANSPARENCY Overview 1. Südzucker group at a glance and strategic objectives page 3 2. Development of Segments page 7 „ Sugar page 7 „ Special Products page 18 „ Fruit page 28 3. Financial Highlights H1 2008/09 page 32 4. Outlook page 39 5. Appendix page 43 „ Annual Financial Statement 20

  18. Slide 18: Segment Special Products: Key Figures

    FINANCIAL TRANSPARENCY Segment Special Products: Key Figures (in mn €) 2007/08 2006/07 2005/06 Revenues 1.463 1.308 1.139 EBITDA 195 181 167 EBITDA-Margin 13,3% 13,8% 14,6% Operating profit 129 115 109 Operating Margin 8,8% 8,8% 9,6% Restructuring and special items -19 141 -13 Goodwill impairment lo

  19. Slide 19: Segment Special Products – strong positions in each division

    FINANCIAL TRANSPARENCY Segment Special Products – strong positions in each division „ Bioethanol for fuel sector Revenues (mn €) z Leading European manufacturer CAGR: ~12 % z Backbone: Europe‘s largest bioethanol plant (Zeitz) 2.000 z Mandatory blending requirement for bioethanol 1.463 1.308 „ Beneo

  20. Slide 20: Special Products: Division Bioethanol

    FINANCIAL TRANSPARENCY Special Products: Division Bioethanol Revenue development (mn €) „ Economics 2007/08: CAGR: ~77 % ~600 z Significant increase in revenues from 61 to 307 mn € over period of 2 years z Operating margin 8.7% (CropEnergies 11.8%) 307 „ Midterm perspective: 206 61 z Revenues of 600

  21. Slide 21: Special Products: Division Bioethanol capacities

    FINANCIAL TRANSPARENCY Special Products: Division Bioethanol (Capacities in k m3) Completion of capacity build-up 2008/09 (+ up to 300) (>300) Installation (+240) Wanze HUNGRANA (25) * (+55) * Installation (+100) Expansion (>700) Pischelsdorf Loon-Plage (100) Expansion HUNGRANA Zeitz Zeitz (260) 200

  22. Slide 22: Special Products: Division Beneo at a glance

    FINANCIAL TRANSPARENCY Special Products: Division Beneo at a glance „ BENEO Group bundles Functional Food-operations 2007/08 „ Worldwide unchanging growing demand for Functional Revenues (mn €) 320 Food ingredients in view of increasing competition Production sites 5 „ BENEO-Orafti (fat replacers):

  23. Slide 23: Special Products: Division Starch at a glance

    FINANCIAL TRANSPARENCY Special Products: Divison Starch at a glance „ Well established player as manufacturer of specialty 2007/08 starches for the paper, textile, cosmetics, Revenues (mn €) 288 pharmaceutical and construction industries Production sites 5 „ Principal focus on organic and GM-free st

  24. Slide 24: Special Products: Division Freiberger at a glance

    FINANCIAL TRANSPARENCY Special Products: Division Freiberger at a glance „ Freiberger produces and sells chilled and frozen 2007/08 pizzas as well as frozen pasta and baguettes Revenues (mn €) 446 „ It is the unchallenged European market leader for Production sites 5 own label/private lable frozen p

  25. Slide 25: Special Products: Division PortionPack Europe at a glance

    FINANCIAL TRANSPARENCY Special Products: Divison PortionPack Europe at a glance „ PortionPack Europe is the European leader in 2007/08 individually packaged portions for the food and Revenues (mn €) 108 non-food sectors in Central Europe Production sites 6 „ In addition to conventional sugar packets

  26. Slide 26: Segment Special Products: Outlook 2008/09

    FINANCIAL TRANSPARENCY Segment Special Products: Outlook 2008/09 „ Continued dynamic growth of Bioethanol Division Revenues z Installation of plant in Pischelsdorf/Austria June 2008 z Installation of plant in Wanze/Belgium end of CY 2008 „ Significant increase in revenues in Starch Division (e.g. vi

  27. Slide 27: Overview

    FINANCIAL TRANSPARENCY Overview 1. Südzucker group at a glance and strategic objectives page 3 2. Development of Segments page 7 „ Sugar page 7 „ Special Products page 18 „ Fruit page 28 3. Financial Highlights H1 2008/09 page 32 4. Outlook page 39 5. Appendix page 43 „ Annual Financial Statement 20

  28. Slide 28: Segment Fruit: Key Figures

    FINANCIAL TRANSPARENCY Segment Fruit: Key Figures (in mn €) 2007/08 2006/07 *) 2005/06 Revenues 853 915 541 EBITDA 81 89 58 EBITDA-Margin 9,5% 9,7% 10,7% Operating profit 44 46 27 Operating Margin 5,1% 5,0% 5,0% Restructuring and special items -5 0 0 Income from operations (EBIT) 39 46 27 Investment

  29. Slide 29: Segment Fruit – with leading positions in both divisions

    FINANCIAL TRANSPARENCY Segment Fruit – with leading positions in both divisions „ Overview Revenues (mn €) z Division Fruit preparations: World market leader 915 Customers: dairy, baking and ice cream industry z Division Fruit juice concentrates: Leading European producer 12 Months (market leader in

  30. Slide 30: Segment Fruit: Outlook 2008/09

    FINANCIAL TRANSPARENCY Segment Fruit: Outlook 2008/09 „ Division Fruit Preparations: Continued stable volume growth Revenues „ Division Fruit Juice Concentrates: Improvement in availability of raw material leads to increase in production, but overall lower selling prices result in revenue decrease „

  31. Slide 31: Overview

    FINANCIAL TRANSPARENCY Overview 1. Südzucker group at a glance and strategic objectives page 3 2. Development of Segments page 7 „ Sugar page 7 „ Special Products page 18 „ Fruit page 28 3. Financial Highlights H1 2008/09 page 32 4. Outlook page 39 5. Appendix page 43 „ Annual Financial Statement 20

  32. Slide 32: Financial Highlights H1 2008/09

    FINANCIAL TRANSPARENCY Financial Highlights H1 2008/09 „ Revenues climb 6% to 3.0 (2.8) bn € driven by dynamic growth in Special Products (+21%) „ Operating profit to 81 (120) mn € after write-down of harvest 2007 apple juice concentrate stocks „ Segment Sugar: increase of operating profit to 48 (32

  33. Slide 33: Südzucker Group: Development H1 2008/09

    FINANCIAL TRANSPARENCY Südzucker Group: Development H1 2008/09 2nd quarter 1st half year (in mn €) 2008/09 2007/08 Δ 2008/09 2007/08 Δ Revenues 1.528 1.484 3% 2.997 2.822 6% EBITDA 59 107 -45% 162 198 -18% EBITDA-Margin 3,9% 7,2% 5,4% 7,0% Depreciation -41 -40 2% -81 -78 4% Operating profit 18 67 -7

  34. Slide 34: Südzucker Group: Development H1 2008/09 (earnings)

    FINANCIAL TRANSPARENCY Südzucker Group: Development H1 2008/09 2nd quarter 1st half year (in mn €) 2008/09 2007/08 Δ 2008/09 2007/08 Δ Income from operations (EBIT) 13 62 -79% 195 93 > 100 % Income from associated companies 15 4 > 100 % 18 20 -14% Financial result -26 -19 40% -48 -34 42% Earnings be

  35. Slide 35: Segment Sugar: Development H1 2008/09

    FINANCIAL TRANSPARENCY Segment Sugar: Development H1 2008/09 2nd quarter 1st half year (in mn €) 2008/09 2007/08 Δ 2008/09 2007/08 Δ Revenues 881 897 -2% 1.731 1.679 3% EBITDA 34 36 -4% 74 57 30% EBITDA-Margin 3,9% 4,0% 4,3% 3,4% Depreciation -12 -13 -8% -26 -25 3% Operating profit 22 23 -4% 48 32 5

  36. Slide 36: Segment Special Products: Development H1 2008/09

    FINANCIAL TRANSPARENCY Segment Special Products: Development H1 2008/09 2nd quarter 1st half year (in mn €) 2008/09 2007/08 Δ 2008/09 2007/08 Δ Revenues 448 368 22% 858 708 21% EBITDA 45 51 -12% 91 103 -12% EBITDA-Margin 10% 14% 11% 15% Depreciation -19 -17 9% -37 -33 10% Operating profit 26 34 -23%

  37. Slide 37: Segment Fruit: Development H1 2008/09

    FINANCIAL TRANSPARENCY Segment Fruit: Development H1 2008/09 2nd quarter 1st half year (in mn €) 2008/09 2007/08 Δ 2008/09 2007/08 Δ Revenues 199 218 -9% 408 435 -6% EBITDA -20 20 - -2 38 - EBITDA-Margin - 9,2% - 8,6% Depreciation -10 -9 -0,5% -19 -19 -0,5% Operating profit -30 11 - -21 19 - Operati

  38. Slide 38: Overview

    FINANCIAL TRANSPARENCY Overview 1. Südzucker group at a glance and strategic objectives page 3 2. Development of Segments page 7 „ Sugar page 7 „ Special Products page 18 „ Fruit page 28 3. Financial Highlights H1 2008/09 page 32 4. Outlook page 39 5. Appendix page 43 „ Annual Financial Statement 20

  39. Slide 39: Südzucker Group: Outlook 2008/09

    FINANCIAL TRANSPARENCY Südzucker Group: Outlook 2008/09 „ Segment Sugar: Slight decline in light of quota renouncement Revenues (sugar marketing year 2008/09) „ Continued organic growth path within Special Products segment „ Fruit segment on pre-year level  Südzucker Group: ~ 5.8 – 6.0 bn € „ Segme

  40. Slide 40: Südzucker Group: Outlook 2009/10

    FINANCIAL TRANSPARENCY Südzucker Group: Outlook 2009/10 „ Special Products and Fruit Segments with continued growth Revenues (share of group revenues of approx. 50%)  Südzucker Group: ~ 6.0 bn € Operating „ > 400 mn € Profit Capex „ < 300 mn € (fixed assets) Cash inflow „ 446 mn € EU payment for qu

  41. Slide 41: Executive Summary

    FINANCIAL TRANSPARENCY Executive Summary Revenues As Segments Special Products and Fruit are expected to continue their sound growth path, we do expect further revenue increases on group level until 2009/10 - despite lower revenue contribution from the Segment Sugar induced by necessary quota renoun

  42. Slide 42: Overview

    FINANCIAL TRANSPARENCY Overview 1. Südzucker group at a glance and strategic objectives page 3 2. Development of Segments page 7 „ Sugar page 7 „ Special Products page 18 „ Fruit page 28 3. Financial Highlights H1 2008/09 page 32 4. Outlook page 39 5. Appendix page 43 „ Annual Financial Statement 20

  43. Slide 43: Financial Highlights 2007/08

    FINANCIAL TRANSPARENCY Financial Highlights 2007/08 „ Group revenues comparable to last year at 5.8 bn € „ Decrease of group operating profit to 233 (419) mn € „ Cashflow maintained at high level of 498 (554) mn € „ Segment Sugar with lower operating profit of 61 (259) mn € in light of structural an

  44. Slide 44: Key figures Südzucker Group

    FINANCIAL TRANSPARENCY Key figures Südzucker Group (in mn €) 2007/08 2006/07 2005/06 Revenues 5.780 5.765 5.347 EBITDA 489 682 672 EBITDA-Margin 8,5% 11,8% 12,6% Operating profit 233 419 450 Operating Margin 4,0% 7,3% 8,4% Restructuring and special items -44 32 -53 Goodwill impairment loss 0 -580 0

  45. Slide 45: Revenues by segment

    FINANCIAL TRANSPARENCY Revenues by segment (in mn €) 2007/08 2006/07 Δ Südzucker Group 5.780 5.765 15 0,3% Sugar 3.464 3.542 -78 -2,2% Special Products 1.463 1.308 155 11,8% Fruit 853 915 -62 -6,8% „ Sugar: Higher quota sugar sales and increase in the industrial sugar business cannot compensate for

  46. Slide 46: Revenue growth Special Products

    FINANCIAL TRANSPARENCY Revenue growth Special Products (mn €; adjusted for disposal of inulin fructose business) 2.000 5% 20% 1.463 1.308 7% 1.088 1.139 21% 33% 11% 20% 22% 24% 30% 40% 27% 22% 18% 2004/05 2005/06 2006/07 2007/08 2009/10e BENEO Bioethanol Freiberger Starch Others „ Doubling of revenu

  47. Slide 47: Revenues by region 2007/08

    FINANCIAL TRANSPARENCY Revenues by region 2007/08 „ Approx. 70% of revenues generated abroad EU 15 „ South Eastern Europe shows growth above (48.0 %) average „ New markets with dynamic growth z Segment Sugar: ¾ Supply of deficit markets Italy and Greece ¾ Raw sugar refinery in Bosnia to supply Balka

  48. Slide 48: Operating profit by segment

    FINANCIAL TRANSPARENCY Operating profit by segment (in mn €) 2007/08 2006/07 Δ Südzucker Group 233 419 -186 -44,4% Sugar 61 259 -198 -76,7% Special Products 129 115 14 12,2% Fruit 43 45 -2 -4,4% „ Sugar: Phase of restructuring within European sugar market leads to structural effects, temporary high

  49. Slide 49: Earnings before income taxes

    FINANCIAL TRANSPARENCY Earnings before income taxes (in mn €) 2007/08 2006/07 Δ Operating income 233 419 -186 Restructuring and special items -44 32 -76 Goodwill impairment loss 0 -580 580 Income from operations (EBIT) 189 -129 318 Income from associated companies 23 1 22 Financial expense -92 -99 7

  50. Slide 50: Earnings per share

    FINANCIAL TRANSPARENCY Earnings per share (in mn €) 2007/08 2006/07 Δ Earnings before income taxes 120 -227 347 Taxes on income -20 -19 -1 Consolidated net earnings 100 -246 346 thereof Südzucker AG shareholders 20 -327 347 thereof hybrid capital 26 23 3 thereof other minority interest 54 58 -4 Earn

  51. Slide 51: Investments

    FINANCIAL TRANSPARENCY Investments (in mn €) 2007/08 2006/07 Δ Capex 494 378 116 30,4% Sugar 139 139 -1 -0,5% Special Products 312 191 121 63,4% Fruit 43 48 -5 -10,6% Financial Assets 53 62 -9 -15,1% Sugar 53 5 48 Special Products 0 28 -28 Fruit 0 29 -29 Subtotal 547 440 107 24,2% Purchase new sugar

  52. Slide 52: Development of net financial debt

    FINANCIAL TRANSPARENCY Development of net financial debt due to … (in mn €) „ Temporary charges of transition period within the „ High level of investments EU sugar market regime (inventory build-up driven by extension in Segment Sugar) Division Bioethanol „ High raw material costs in Special Produc

  53. Slide 53: Return on Capital Employed (RoCE)

    FINANCIAL TRANSPARENCY Return on Capital Employed (RoCE) 2007/08 2006/07 2007/08 (in mn €) RoCE RoCE Op. Profit Cap. Employed Südzucker Group 4,7% 8,8% 233 5.005 Sugar 2,2% 9,6% 61 2.785 Special Products 9,0% 8,4% 129 1.439 Fruit 5,5% 5,9% 43 781 „ Sugar: Expected drop in RoCE through interaction of

  54. Slide 54: Balance sheet ratios

    FINANCIAL TRANSPARENCY Balance sheet ratios (in mn €) 29.02.2008 28.02.2007 Total assets 7.917 7.932 Equity 3.300 3.362 Equity ratio 41.7% 42.4% Net Financial Debt (NFD) 1.508 811 Gearing (NFD/Equity) 45,7% 24,1% Cashflow 498 554 NFD / Cashflow 3,0x 1,5x Goodwill 1.104 1.109 * Property, plant, equip

  55. Slide 55: Balance Sheet Structure

    FINANCIAL TRANSPARENCY Balance Sheet Structure (in mn €) 29.02.2008 28.02.2007 (in mn €) 29.02.2008 28.02.2007 Intangible assets 1.162 14,7% 1.340 16,9% Equity attributable to shareholders of SZ AG 2.041 25,8% 2.107 26,6% Property, plant, equipement 2.538 32,1% 2.344 29,5% Hybrid capital 684 8,6% 68

  56. Slide 56: Conclusion: Annual Financial Statement 2007/08

    FINANCIAL TRANSPARENCY Conclusion: Annual Financial Statement 2007/08 „ Diversification can compensate for temporary charges within Sugar Segment on revenue, but not on profit level „ Segment Special Products shows significant increase in revenues and profits „ Segment Fruit* with continued revenue

  57. Slide 57: Overview

    FINANCIAL TRANSPARENCY Overview 1. Südzucker group at a glance and strategic objectives page 3 2. Development of Segments page 7 „ Sugar page 7 „ Special Products page 18 „ Fruit page 28 3. Financial Highlights H1 2008/09 page 32 4. Outlook page 39 5. Appendix page 43 „ Annual Financial Statement 20

  58. Slide 58: Südzucker Group: Long-term development of key figures

    FINANCIAL TRANSPARENCY Südzucker Group: Long-term development of key figures Pre-Reform Transition period Actual Actual Actual Actual Actual Outlook Outlook (in mn €) 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09e 2009/10e Revenues 4.575 4.827 5.347 5.765 5.780 5.800-6.000 ~ 6.000 EBITDA 677 723 6

  59. Slide 59: Overview

    FINANCIAL TRANSPARENCY Overview 1. Südzucker group at a glance and strategic objectives page 3 2. Development of Segments page 7 „ Sugar page 7 „ Special Products page 18 „ Fruit page 28 3. Financial Highlights H1 2008/09 page 32 4. Outlook page 39 5. Appendix page 43 „ Annual Financial Statement 20

  60. Slide 60: Südzucker Group: Liquidity overview

    FINANCIAL TRANSPARENCY Südzucker Group: Liquidity overview Actual Actual Actual Estimate 2007/08 Q1 2008/09 Q2 2008/09 2008/09 (mn €) 29th. Febr 2008 31st. May 2008 31st. August 2008 28th. Febr 2009e Net financial debt -1.508 -1.920 -1.592 -1.600 to -1.700 Cash & cash equivalents / securities SZ Gro

  61. Slide 61: Overview

    FINANCIAL TRANSPARENCY Overview 1. Südzucker group at a glance and strategic objectives page 3 2. Development of Segments page 7 „ Sugar page 7 „ Special Products page 18 „ Fruit page 28 3. Financial Highlights H1 2008/09 page 32 4. Outlook page 39 5. Appendix page 43 „ Annual Financial Statement 20

  62. Slide 62: Segment Sugar: Campaign 2007/08

    FINANCIAL TRANSPARENCY Segment Sugar: Campaign 2007/08 „ Beet growers: 59,200 „ Beet acreage: 438,500 ha „ Sugar factories: 41 (incl. refineries) „ Beet processing: 28.2 mn tons „ Sugar production: 4.6 mn tons z thereof from beets: 4.3 mn tons z thereof raw sugar raffination: 0.3 mn tons „ Beet acre

  63. Slide 63: EU sugar market regime: Development of factory margin

    FINANCIAL TRANSPARENCY EU sugar market regime: Development of factory margin Sugar marketing year (Oct. - Sep) 2005/06 2006/07* 2007/08* 2008/09** 2009/10** Δ cum. I. Reference price, Restructuring levy, Margin Reference price (consumer level) €/t S 632 632 632 542 404 -228 -36% Restructuring levy €

  64. Slide 64: Development of EU quota renouncements

    FINANCIAL TRANSPARENCY Development of EU quota renouncements (in mn t) n Sluggish quota renouncements: 6.0 5.6 Temporary withdrawal of 2 mn t o EU incentive scheme works: 4.2 As of March, 31st 2008 5.6 mn t of quota are renounced p Last possibility for compensated voluntary quota 3.4 renouncements 2

  65. Slide 65: Segment Sugar: Adaption of factory structure

    FINANCIAL TRANSPARENCY Segment Sugar: Adaption of factory structure 52 46 45 14,000 42 41 33 40 12,000 20 10,000 0 8,000 13,812 -20 6,000 12,001 11,678 -40 10,885 10,043 9,450 4,000 -60 2,000 -80 0,000 -100 2003 2004 2005 2006 2007 2008 Employees * Factories ** * including reductions in the context

  66. Slide 66: Segment Sugar: Cost reduction measures

    FINANCIAL TRANSPARENCY Segment Sugar: Cost reduction measures (in mn €) Measures Cost Savings p.a. cash non cash Total fully effective „ Factory closures -112 -93 -204 64 „ Austria: Hohenau 18 2007/08 „ Slovakia: Sobota 46 2009/10 „ Germany: Groß Gerau, Regensburg „ Belgium: Brugelette „ France: Gui

  67. Slide 67: Division Bioethanol: Sound political environment

    FINANCIAL TRANSPARENCY Division Bioethanol: Sound political environment „ EU admits unlimited support of biofuels: EU-Commission estimate Development of grain volumes z EU mandatory blending of 5.75% until 2010, directive suggests increase to 10% in Grain 2020e 2020 in mn t z Introduction of sustain

  68. Slide 68: Advantage for bioethanol as a fuel

    FINANCIAL TRANSPARENCY Precondition for acceptance of biofuels or: Advantage for bioethanol as a fuel „ Convenient handling, comparable to fossil fuel z Liquid; using existing tanks and station infrastructure 9 z Easy filling under atmospheric pressure with existing security systems „ Established ve

  69. Slide 69: Division Bioethanol with anchor investment CropEnergies

    FINANCIAL TRANSPARENCY Division Bioethanol with anchor investment CropEnergies … „ …is well positioned in the European Bioethanol market „ …has strong brands „ …uses various European grains + sugar thick juice as raw material (multi feedstock) „ …hedges 30 % of grain exposure with its by-product Pro

  70. Slide 70: Segment Fruit: Production facilities

    FINANCIAL TRANSPARENCY Segment Fruit: Production facilities Südzucker Group: Page 70

  71. Slide 71: Thank you for your attention

    FINANCIAL TRANSPARENCY Thank you for your attention … Contact Disclaimer Investor Relations This presentation contains forward-looking statements that reflect managements current views with respect to future events. The forward-looking statements involve certain risks and Nikolai Baltruschat uncerta

Südzucker Group — Non-Deal Roadshow (November 2008) on 6ix