Suedzucker Ag · XETR:SZU
Suedzucker — Südzucker — Investor Presentation (2013)
65 slides from Suedzucker's investor presentation, Jun 26, 2013
Slide 1: Profile 2013
Profile 2013 ee i SUDZUCKER ___
Slide 2: Contents
Contents 1. Südzucker Group 3.7 Südzucker Polska/Moldova 5.4 BioWanze SA 1.1 Overview 3.8 Raffinerie Tirlemontoise 5.5 Ryssen Alcools SAS 1.2 Corporate strategy and 3.9 Saint Louis Sucre 5.6 CT Biocarbonic guiding principles 3.10 AGRANA 3.11 Mauritius Sugar Syndicate 6. Fruit segment 1.3 Segment ove
Slide 3: Links
Links Südzucker Group Special products segment www.suedzucker.de www.beneo-group.com www.facebook.com/suedzuckerkarriere www.beneo-orafti.com www.twitter.com/suedzucker_jobs www.beneo-palatinit.com www.xing.com/companies/südzuckerag www.beneo-remy.com www.kununu.com/de/all/de/nm/suedzucker Sugar seg
Slide 4: 1.1 Südzucker Group: Overview
1.1 Südzucker Group: Overview Global operating German food group Segments sugar, special products, CropEnergies and fruit 17,900 employees 7.9 billion annual revenues Sugar production: 4.9 million tonnes Leader in the European sugar market Member of the German MDAX
Slide 5: 1.2 Corporate strategy and guiding principles
1.2 Corporate strategy and guiding principles Südzucker is Europe's leading supplier of sugar products and is well positioned in the special products, CropEnergies and fruit segments. Our goal as a European corporation is to work in concert with our partners on responsibly shaping the future, based
Slide 6: 1.3 Südzucker Group: Segment overview
1.3 Südzucker Group: Segment overview 29 sugar factories and BENEO Bioethanol Fruit preparations 3 refineries in Freiberger 3 production sites Fruit juice concentrates Austria, Belgium, PortionPack Europe in Germany, 41 production sites Bosnia-Herzegovina, Starch Belgium and France worldwide the Cze
Slide 7: 1.4 Südzucker Group: Figures
1.4 Südzucker Group: Figures 2012/13 2011/12 Revenues million 7,879 6,992 EBITDA million 1,248 1,015 Depreciation of fixed assets and intangible assets million -274 -264 Operating profit million 974 751 Restructuring costs and special items million -17 8 Income from operations million 95
Slide 8: 1.5 Südzucker Group: Segment figures
1.5 Südzucker Group: Segment figures Revenues % million 2012/13 2011/12 54 Sugar segment 4,232 3,728 24 Special products segment 1,862 1,806 8 CropEnergies segment 645 529 14 Fruit segment 1,140 929 Group 7,879 6,992 Operating profit % million 2012/13 2011/12 72 Sugar segment 710 511 14 Special
Slide 9: 1.6 Südzucker Group: Employees
1.6 Südzucker Group: Employees Employees by segments % 2012/13 2011/12 44 Sugar 8,034 7,976 25 Special products 4,401 4,381 2 CropEnergies 321 310 29 Fruit 5,184 4,822 17,940 17,489 Employees by region % 2012/13 2011/12 52 Other EU countries 9,410 9,147 23 Germany 4,099 4,032 25 None EU/other 4,431
Slide 10: 1.7 Executive board of the Südzucker AG
1.7 Executive board of the Südzucker AG Dr. Wolfgang Heer Dr. Thomas Kirchberg Prof. Dr. Markwart Kunz (CEO) Agricultural commodities To August 1, 2013 Sales Animal feed/by-products Research/development/services Corporate development Farms/commodity markets Functional food Compliance Agricultural re
Slide 11: 1.8 Supervisory board of the Südzucker AG
1.8 Supervisory board of the Südzucker AG Chairman: Dr. Hans-Jörg Gebhard 2 Deputy chairmen: Dr. Christian Konrad Franz-Josef Möllenberg 8 further shareholders' representatives 9 further employees' representatives Südzucker largely complies with the recommendations of the government commission Germa
Slide 12: 175 years of tradition
175 years of tradition 1837 Formation of the first sugar company of the later Südzucker 1926 First merger: Süddeutsche Zucker-AG, Mannheim 1951 Formation of Zuckerfabrik Franken GmbH 1988 Second merger: Südzucker AG Mannheim/Ochsenfurt 1989 Investment in AGRANA Beteiligungs-AG, Vienna 1989 Investmen
Slide 13: 1.9 175 years of tradition
1.9 175 years of tradition 2004 Start of construction of the bioethanol plant in Zeitz 2004 Worldwide expansion of fruit division 2005 Start of bioethanol production in Zeitz 2006 BENEO-Orafti factory in Chile starts production 2006 IPO for the Südzucker subsidiary CropEnergies (bioethanol) 2006 Eur
Slide 14: 1.9 175 years of tradition
1.9 175 years of tradition 2008 Bioethanol plant in Wanze, Belgium with an annual capacity of 300,000 m³ starts production 2008 Bioethanol plant in Pischelsdorf, Austria with an annual capacity of 240,000 m³ starts production 2009 Freiberger takes over the pizza production site in Osterweddingen 201
Slide 15: 2.1 Südzucker share: Overview
2.1 Südzucker share: Overview 2012/13 2011/12 Dividend per share 1) 0.90 0.70 Dividend yield % 2.68 3.22 Average share price 27.39 22.39 High for the year 33.55 26.11 Low for the year 21.84 18.61 Closing price XETRA® (record date) 33.55 21.75 Average trading volume/day 2) thousands of shar
Slide 16: 2.2 Südzucker share: Share price movement
2.2 Südzucker share: Share price movement 34 29 24 19 March April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2013 2013 2013 The current share price movement can be found here: www.suedzucker.de/en/Investor-Relations/Aktie/Aktueller-Akt
Slide 17: 2.3 Südzucker share: Long-term increase of value
2.3 Südzucker share: Long-term increase of value (assuming reinvestment of dividends* and rights) 179,600 Value in thousands 150 130 110 90 70 50 30 10 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2013 * excluding tax credit.
Slide 18: 2.4 Shareholder structure
2.4 Shareholder structure Sugar beet growers' associations Verband Süddeutscher Zuckerrübenanbauer Regional associations: Baden-Württemberg, Bavaria, Franconia, Hesse-Palatinate, Kassel, Wetterau, Saxonia-Thuringia Co-operative societies' headquarters BayWa, ZG, RWZ, DZ BANK SZVG Zucker Invest GmbH
Slide 19: 3.1 Sugar segment: Overview
3.1 Sugar segment: Overview To the sugar segment belongs: Sugar production sites of Mauritius Sugar Syndicate Südzucker AG Germany ED&F Man Südzucker Polska Poland Agriculture/commodity markets Südzucker Moldova Moldova Animal Feed Raffinerie Tirlemontoise Belgium Bodengesundheitsdienst Sain
Slide 20: 3.2 Sugar segment: Figures
3.2 Sugar segment: Figures 2012/13 2011/12 Revenues million 4,232 3,728 EBITDA million 832 626 Depreciation of fixed assets and intangible assets million -122 -115 Operating profit million 710 511 Restructuring costs and special items million 6 13 Income from operations million 716 524 E
Slide 21: 3.3 Sugar segment: Campaign 2012
3.3 Sugar segment: Campaign 2012 Group 29 sugar factories all over Europe, 3 refineries Cultivated area: 422,000 hectares Beet processing: 28.7 million tonnes Sugar production: 4.9 million tonnes (including raw sugar refining) Germany 9 sugar factories France 4 sugar factories und 1 refinery Belgium
Slide 22: 3.4 Sites of the sugar factories/refineries
3.4 Sites of the sugar factories/refineries Südzucker Raffinerie Tirlemontoise Saint Louis Sucre Germany Poland AGRANA Warburg Brottewitz Wabern Strzyzów Zeitz Belgium Swidnica Strzelin Tienen Cerekiew Roye Ropczyce Wanze Offstein Eppeville Ochsenfurt Czech Offenau Republic Opava Etrépagny Hrusovany
Slide 23: 3.5 Beet processing/sugar production
3.5 Beet processing/sugar production Million tonnes Beet processing 35 Sugar production* 31.3 30 28.7 26.1 25 20 15 10 5.4 4.9 4.2 5 0 2012/13 2011/12 2010/11 * Group, incl. raw sugar refinery.
Slide 24: 3.6 Südzucker AG
3.6 Südzucker AG Founded 1925 9 sugar factories in Germany Processing capacity of the sugar factories: about 100,000 tonnes per day Products: wide assortment of sugar types for households and for the processing industry
Slide 25: 3.6.1 Südzucker: Assortment for households
3.6.1 Südzucker: Assortment for households Extra white sugar Icing sugar Rock candy (fine granulate) Icing sugar (mill) Tea sugar Extra white sugar Nibs sugar Fructose (finest granulate) Brown sugar Arometti fine sugar aromatized Extra white sugar with amaretto, vanilla, caramel Sugar cubes extra fi
Slide 26: 3.6.2 Südzucker: Assortment for processing industries
3.6.2 Südzucker: Assortment for processing industries Crystal Liquid Specialities Crystal sugar Liquid sugar Fondant Extra white sugar Invert sugar syrup Organic fondant Icing sugar Organic invert sugar syrup Glazes Brown sugar Mixed syrups Nibs sugar Farin sugar Fructose syrup Compri sugar Raw cane
Slide 27: 3.7 Südzucker Polska/Südzucker Moldova
3.7 Südzucker Polska/Südzucker Moldova Südzucker Group established a foothold in Poland and Moldova in the mid-90s. The company now operates five sugar factories in Silesia and southeast Poland and two sugar factories in Moldova.
Slide 28: 3.8 Raffinerie Tirlemontoise
3.8 Raffinerie Tirlemontoise Raffinerie Tirlemontoise has been affiliated with Südzucker Group since 1989. The entity operates two sugar factories.
Slide 29: 3.9 Saint Louis Sucre France
3.9 Saint Louis Sucre France Saint Louis Sucre in France has been affiliated with Südzucker Group since 2001. The entity operates four sugar factories, four packaging lines and one cane sugar refinery.
Slide 30: 3.10 AGRANA
3.10 AGRANA AGRANA Zucker GmbH is the management company of the Austrian sugar division and also serves as a holding company for the subsidiaries in Bosnia-Herzegovina, Bulgaria, the Czech Republic, Hungary, Romania and Slovakia.
Slide 31: 3.11 Mauritius Sugar Syndicate
3.11 Mauritius Sugar Syndicate The Mauritius Sugar Syndicate is the sole sales and marketing organization of Mauritian sugar producers. Südzucker has signed an exclusive partnership agreement with the Mauritius Sugar Syndicate to market up to 400,000 tonnes of high-quality white sugar per annum in t
Slide 32: 3.12 ED&F Man Holdings Ltd.
3.12 ED&F Man Holdings Ltd. Founded 1783 Over 3,400 employees in 60 countries Headquarters in London Operations: Sugar: Trading as well as participations in production and refining capacities Marketing of coffee and molasses Trading in biofuels, edible oils as well as shipping and financial services
Slide 33: 3.13 Division agriculture/commodity markets
3.13 Division agriculture/commodity markets Manage lands in Südzucker's territory Satisfying the new demands concerning the cultivation of plants (e.g. organic beets) by carrying out tests and further developing cultivation methods, production engineering, soil cultivation, etc. Creating agricultura
Slide 34: 3.14 Bodengesundheitsdienst, animal feed, Agrar und Umwelt AG
3.14 Bodengesundheitsdienst, animal feed, Agrar und Umwelt AG BGD Bodengesundheitsdienst GmbH Soil testing Fertilisation advice Comparison of plant nutrients Virus analyses Animal feed Marketing of by-products of sugar and bioethanol production Agrar und Umwelt AG Loberaue Zschortau, organic divisio
Slide 35: 4.1 Special products segment: Overview
4.1 Special products segment: Overview 4.3 4.5 Functional ingredients for food, feed, Portion pack articles pharmaceuticals and non-food applications 5 production locations in Europe 5 production locations worldwide 4.6 4.4 Deep-frozen and chilled pizza, as well as Starch and special starch products
Slide 36: 4.2 Special products segment: Figures
4.2 Special products segment: Figures 2012/13 2011/12 Revenues million 1,862 1,806 EBITDA million 214 231 Depreciation of fixed assets and intangible assets million -82 -82 Operating profit million 132 149 Restructuring costs and special items million -4 -3 Income from operations million
Slide 37: 4.3 BENEO Connecting nutrition & health
4.3 BENEO Connecting nutrition & health BENEO produces and markets functional ingredients with technological advantages and nutritional benefits uniting the business of BENEO-Orafti, BENEO-Palatinit and BENEO-Remy. Market segments: food, feed Through a unique chain of expertise, BENEO actively sup
Slide 38: 4.3.1 BENEO: Markets and services
4.3.1 BENEO: Markets and services BENEO has subsidiaries in the United States, Asia, South America and Europe and teams of experts at its BENEO Institute and BENEO Technology Center. Together, these entities help international customers successfully develop and market the products that use BENEO ing
Slide 39: 4.3.2 BENEO: Products
4.3.2 BENEO: Products BENEO produces and sells functional ingredients, primarily for the food industry. These ingredients are increasingly also being added to animal feed due to their nutritional benefits. Inulin and oligofructose: natural fibres from chicory Isomalt and Palatinose: Functional carb
Slide 40: 4.3.3 BENEO: Benefits
4.3.3 BENEO: Benefits BENEO offers industry functional ingredients that add technological and dietary value to food and animal feed. Technological advantages Nutritional benefits Sugar replacement Sugar, fat and calorie reduction Fat replacement Prebiotic and fibre claims Delicate textures (crispy,
Slide 41: 4.4 Freiberger
4.4 Freiberger One of the largest manufacturers of frozen and chilled pizza in Europe Market share frozen pizza: 20.0 % Market share chilled pizza: 13.5 % Products: Frozen and chilled pizza as well as deep frozen pasta dishes and snacks Production locations: Berlin, Muggensturm, Osterweddingen, Ober
Slide 42: 4.5 PortionPack Europe
4.5 PortionPack Europe Production and sales of portion packed products Product range: Food (sugar portions, toppings, pastries, snacks, sweets, etc.) Non-food (shower gel, shampoo, refreshing towels, etc.) European market leader Major markets: Out-of-home-market (hotels, catering, restaurants and ca
Slide 43: 4.6 Starch
4.6 Starch 5 production sites in Austria, Hungary and Romania Raw materials: Potatoes, wheat and maize Starch and special starch products for the Food and beverage industries Baby food industries Paper and paper converting industries Textile industry Construction chemicals industry Pharmaceutical an
Slide 44: 5.1 CropEnergies segment: Overview
5.1 CropEnergies segment: Overview The CropEnergies Group is one of the 3 production sites in Germany, leading European producers of bioethanol Belgium and France with an for the fuel sector annual production capacity of about The CropEnergies Group includes: 800,000 m³ bioethanol CropEnergies Bioet
Slide 45: 5.2 CropEnergies segment: Figures
5.2 CropEnergies segment: Figures 2012/13 2011/12 Revenues million 645 529 EBITDA million 119 84 Depreciation of fixed assets and intangible assets million -32 -31 Operating profit million 87 53 Restructuring costs and special items million 0 -1 Income from operations million 87 52 EBITD
Slide 46: 5.3 CropEnergies Bioethanol GmbH
5.3 CropEnergies Bioethanol GmbH One of Europes biggest bioethanol plants with an annual capacity of 360,000 m³ bioethanol for the fuel sector and 260,000 tonnes ProtiGrain® (protein animal feed) in Zeitz, Saxony-Anhalt Quality fuel from CropEnergies: CropPower85 (about 85 % bioethanol, about 15 % p
Slide 47: 5.4 BioWanze SA
5.4 BioWanze SA Since December 2008 BioWanze operates a plant in Wanze/Belgium producing bioethanol, ProtiWanze® (protein animal feed) and gluten Innovative production process: Through the use of biomass as primary energy source instead of fossil fuel 70 % CO2 will be saved Raw materials: wheat and
Slide 48: 5.5 Ryssen Alcools SAS
5.5 Ryssen Alcools SAS Production site in Loon-Plage/France Part of the CropEnergies Group since June 2008 Annual capacity: Dehydration of 100,000 m³ bioethanol for fuel applications Rectification of 80,000 m³ bioethanol for traditional and technical applications Ryssen Alcools SAS specializes in fl
Slide 49: 5.6 CT Biocarbonic
5.6 CT Biocarbonic Joint venture to liquefy the CO2 generated at the bioethanol facility Partner: Tyczka Energie GmbH Largest biogenic CO2 liquefication plant in Germany CO2 marketed for use in the beverage industry, in the food industry as a cooling and freezing agent and to produce dry ice used fo
Slide 50: 6.1 Fruit segment: Overview
6.1 Fruit segment: Overview Segment with a global reach and 41 production facilities Global market leader in fruit preparations (AGRANA Fruit) Leading producer of fruit juice concentrates (Austria Juice) in Europe Refining agricultural raw materials to high-value intermediate products for the food i
Slide 51: 6.2 Fruit segment: Figures
6.2 Fruit segment: Figures 2012/13 2011/12 Revenues million 1,140 929 EBITDA million 83 74 Depreciation of fixed assets and intangible assets million -38 -36 Operating profit million 45 38 Restructuring costs and special items million -19 -1 Income from operations million 26 37 EBITDA ma
Slide 52: 6.3 Fruit preparations (AGRANA Fruit)
6.3 Fruit preparations (AGRANA Fruit) Global market leader in fruit preparations 26 production sites in Austria, Germany, France, Belgium, Poland, Ukraine, Serbia, Turkey, Russia; Argentina, Australia, Brazil, China, Egypt, Fiji, Mexico, Morocco, South Africa, South Korea and the USA Bundling all bu
Slide 53: 6.4 Fruit juice concentrates (Austria Juice)
6.4 Fruit juice concentrates (Austria Juice) Biggest producer of fruit juice concentrates in Europe Production and marketing of high-value apple juice and berry juice concentrates, direct juices and purees 15 production locations in Austria, China, Denmark, Hungary, Poland, Romania, Ukraine Bundling
Slide 54: 7. Research and development
7. Research and development Main focus: Assignments: Development of new products and Sugar technology and sugar specialities, product variants functional food ingredients (Isomalt, Application technology in the food PalatinoseTM, rice derivatives, inulin and and non-food areas oligofructose, protein
Slide 55: 8.1 Sustainability: Basis for success
8.1 Sustainability: Basis for success In the long run, sustainability is for the Südzucker Group the only promising way of operating economically. Integrated consideration of economic, ecological and social questions from raw material to consumer is the basis for our corporate decision-making an
Slide 56: 8.2 Sustainability: Examplary initiatives I
8.2 Sustainability: Examplary initiatives I Environmentally-friendly methods in the field such as: reducing erosion by planting catch crops, mulch seeding, using soil conserving agricultural machinery optimizing fertilization as per EUF tests reducing soil adherence by properly maintaining beet stor
Slide 57: 8.2 Sustainability: Examplary initiatives II
8.2 Sustainability: Examplary initiatives II Resource-conserving business practices e.g.: using energy frugally and efficiently by employing modern processes (e.g., co-generation) using any by-products generated e.g. as animal feed fertilizer avoiding waste e.g. by using less packaging material and
Slide 58: 8.2 Sustainability: Examplary initiatives III
8.2 Sustainability: Examplary initiatives III Eliminating/reducing environmental pollution e.g.: logistics planning for raw material deliveries and product shipments taking steps to reduce noise optimizing water usage in production facilities Development of new sustainable production methods and pro
Slide 59: 8.2 Sustainability: Examplary initiatives IV
8.2 Sustainability: Examplary initiatives IV Training and continuing education advanced education in various occupational fields systematic employee training Career development prospects internal job postings employee retention programs (including retirement benefits) Trust and respect when interact
Slide 60: 9.1 German sugar market
9.1 German sugar market 2012/13 2011/12 Number of sugar factories 20 20 Number of beet growers 31,300 31,900 Area under beet cultivation hectares 345,300 357,000 Sugar production million tonnes 4.00 4.27 Domestic sugar sales million tonnes 3.00* 3.22 ** Source: WVZ. *2011/12 **2010/11
Slide 61: 9.2 German sugar sales
9.2 German sugar sales 7.4 % Chemical and Households 15.3 % pharmaceutical products Bakeries 1.1 % 21.9 % Other Jam, preserved fruit 4.7 % Milk products, ice cream 6.0 % Biscuits 8.0 % 18.3 % Candies Beverages 17.3 % Processing sugar 84.7 % (total) Source: WVZ; 2011/12
Slide 62: 9.3 EU sugar policy
9.3 EU sugar policy Objectives: Ensure the EU's beet sugar industry remains competitive Ensure highly reliable supplies for consumers Planning reliability to end of September 2015 Recommendations regarding EU sugar market regulations after the 2015/16 sugar marketing year: EU Commission: Let existin
Slide 63: 9.4 National quotas in the EU
9.4 National quotas in the EU 0,1 % Portugal * ** France 25,8 % 0,6 % Finland 0,7 % Lithuania 0,8 % Hungary 0,8 % Slovakia 0,8 % Romania Germany 21,7 % 1,2 % Greece 2,2 % Sweden 2,6 % Austria 2,8 % Denmark Poland 10,5 % 2,8 % Czech Republic 3,7 % Spain Great Britain 7,9 % 3,8 % Italy 5,1 % Belgium N
Slide 64: 9.5 Global sugar production and consumption
9.5 Global sugar production and consumption Mio. t Sugar consumption Beet sugar production Stocks Cane sugar production 200 150 145 136 134 100 50 38 39 31 0 2012/13 2011/12 2010/11 Source: F. O. Licht
Slide 65: 10. Sugar production diagram
10. Sugar production diagram Further Information: Movie: From beets to sugar Beet slices CO2 Slicer Water/condensate Juice Lime milk Steam Massecuite Sugar Cosette Filter thickener Beet storage mixer Liming Carbonation Filtering Lime kiln Washing Unloading Extraction tower Molasses Completely purifi