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Südzucker Group, page 1
Investor RoadshowWarsaw, 3 March 2020
Nikolai Baltruschat (Head of Investor Relations)
Südzucker Group, page 2
FINANCIAL TRANSPARENCY
Agenda1. Overview and strategy page 3
2. Current highlights page 12
3. Capital Market and Financing page 14
4. Development non-sugar-segments page 20
5. Development segment sugar page 44
6. Financial Highlights Q3 2019/20 page 55
7. Outlook 2019/20 page 67
8. Appendix Long-term development and key figures page 73 Additional information page 80
Südzucker Group, page 3
FINANCIAL TRANSPARENCY
Südzucker Group at a glance
Global operating German food group with long-standing corporate history and diversified business model: 1837: Foundation of first sugar company 1926: Foundation of Süddeutsche Zucker-AG ~ 100 production facilities ~ 19.200 employees, worldwide
Majority shareholder / Key shareholders: SZVG: 58 % Zucker Invest GmbH: 10 %
Stock exchange listing in Germany SDAX-member Trading volume*: ~ 0.9 mn shares/day
Sustainable investment grade rating
* Financial year 2018/19
Sugar(38%) Fruit
(18 %)
Group Revenues 6.8 bn €*
Sugar(38 %)
Non-Sugar (62 %)
Special Products (34 %)
Fruit(18 %)
CropEnergies(10 %)
Südzucker Group, page 4
FINANCIAL TRANSPARENCY
Revenues 6.8 bn €
EBITDA 353 mn €
Op. 24 mn €Result
Restructuring and special items
Südzucker Group: Key ratios 2018/19
Cash flow 377 mn €
Net Financial Debt
1,129 mn €
Equity ratio 49 %
Sugar: 2.6 bn €Non-Sugar: 4.2 bn €
Sugar: -102 mn €Non-Sugar: 455 mn €
Sugar: -239 mn €Non-Sugar: 266 mn €
Goodwill-Impairment: -673 mn €Restructuring expense: -147 mn €
Südzucker Group, page 5
FINANCIAL TRANSPARENCY
Return on Capital Employed (RoCE)*
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Ø 7 years
Sugar 22.4 % 13.7 % 0.2 % -2.6 % 2.3 % 4.2 % -9.0 % ~4.5 % Non-sugar 9,5 % 6,9 % 6,4 % 11,6 % 12,4 % 9,1 % 7,8 % ~9,1 % Special Products 9.5 % 6.3 % 8.7 % 11.9 % 12.2 % 7.7 % 7.3 % ~9.1 % CropEnergies 17.3 % 6.4 % -2.2 % 17.7 % 20.4 % 15.9 % 7.2 % ~11.8 % Fruit 5.0 % 8.1 % 8.4 % 7.5 % 8.3 % 9.0 % 9.3 % ~7.9 %
RoC
EG
roup
5,9505,873 5,877
5,791
6,012
6,650
6,072 6,032
10.6 % 3.1 % 4.2 % 7.1 % 6.7 % 0.4 % 6.9 %16.3 %
Capital Employed
(mn €)
RoCE (%)
* Capital Employed decrease mainly driven by goodwill impairment segment sugar FY 2018/19
Südzucker Group, page 6
FINANCIAL TRANSPARENCY
Group strategy
take benefit of megatrends
support and stipulateemployees
focus on core competences
advancediversificationsynergy usage strengthen
market position
continue solid financingstrategy / target value-oriented investments
increaseshareholder value
act sustainable
Südzucker Group, page 7
FINANCIAL TRANSPARENCY
Synergy example: Zeitz site- five composite factories
CO2-Liquefaction
Starchfactory
Bioethanolfactory
Sugar factoryNeutral alcohol
factory
Südzucker Group, page 8
FINANCIAL TRANSPARENCY
Portfolio benefits from long-term megatrends
18,000
58,000
98,000
138,000
178,000
218,000
2,000
4,000
6,000
8,000
tmn
Sources: United Nations, F.O. Licht, ERS International Macroeconomic Data Set
population growth worldwide
sugar consumption worldwide
,0
4,000
8,000
12,000
USD
per capita income
Source: ERS International Macroeconomic Data Set
emerging markets
worldwide
0
20
40
60
80
100
120
0
20
40
60
80
100
120
USD / barrelmn barrel / day
Source: BP, EIA
oil consumption
crude oil price,200
,400
,600
,800
1,000
mn t
Source: USDA
global animal feed production
Südzucker Group, page 9
FINANCIAL TRANSPARENCY
… with volatile and cyclical market conditions and …
400
450
500
550
600
650
700
750
800Ethanol (€ / m³)
0
50
100
150
Brent (USD/barrel)
1,00
1,10
1,20
1,30
1,40
1,50
1,60
1,70EUR/USD
-1,0
0,0
1,0
2,0
3,0
4,0
5,0
6,0 3M-Euribor (%)
50
100
150
200
250
300
350Wheat / Maize (€/t)
150
250
350
450
550
650White sugar (€/t)
Südzucker Group, page 10
FINANCIAL TRANSPARENCY
…environment influenced by political decisions
Brasil Change of government
RenovaBio program
Currency development
EU Coupled payment
for beet growing Prohibition of
Neonicotinoids RED II (renewable
energy directive) Brexit
Global trade WTO
NAFTA
CETA
TTIP
Mercosur
…
Südzucker Group, page 11
FINANCIAL TRANSPARENCY
Agenda1. Overview and strategy page 3
2. Current highlights page 12
3. Capital Market and Financing page 14
4. Development non-sugar-segments page 20
5. Development segment sugar page 44
6. Financial Highlights Q3 2019/20 page 55
7. Outlook 2019/20 page 67
8. Appendix Long-term development and key figures page 73 Additional information page 80
Südzucker Group, page 12
FINANCIAL TRANSPARENCY
Current highlights
Global sugar balance for SMY 20/21: Deficit of 3.0 mn t expected Global sugar balance for SMY 19/20: Deficit of 11.1 mn t expected EU sugar market 18/19 and 19/20: Increase spot price in light of inventory
reduction via drought 2018 and acreage reduction in 2019 Execution of decided restructuring plan
Confirmation of full year forecast in light of weak third quarter
Ethanol price stabilization on high level … …supports full year guidance
Ethanol price stabilization on high level Forecast range operating result adjusted in December:
~ 100 (so far 70 to 90) mn €
SugarSpecial
Products
CropEnergies
Fruit
Operating result outlook adjustment (18 December 2019)70 to 130 (so far 50 to 130) mn €
FY 19/20: Preliminary figures 23 April 2020Group
Südzucker Group, page 13
FINANCIAL TRANSPARENCY
Agenda1. Overview and strategy page 3
2. Current highlights page 12
3. Capital Market and Financing page 14
4. Development non-sugar-segments page 20
5. Development segment sugar page 44
6. Financial Highlights Q3 2019/20 page 55
7. Outlook 2019/20 page 67
8. Appendix Long-term development and key figures page 73 Additional information page 80
Südzucker Group, page 14
FINANCIAL TRANSPARENCY
Three strong anchors in the capital market
* Süddeutsche Zuckerrübenverwertungs-Genossenschaft eG** Z&S Zucker und Stärke Holding AG (~50% Südzucker, ~50% ZBG (Zucker-Beteiligungsgesellschaft m.b.H.))
Market Cap
3.1 bn €
SZVG* (6%)
Freefloat (32%)
SZVG* (58%)
Zucker Invest GmbH (10%)
Südzucker (69%)
Freefloat (25%)
Südzucker direct (3%)
Z&S** (78%)
Freefloat (19%)
Südzucker indirectvia Z&S** (39%)
Market Cap
1.2 bn €
Market Cap
0.9 bn €
Südzucker AG
CropEnergies AGAGRANA Beteiligungs-AG
Südzucker Group, page 15
FINANCIAL TRANSPARENCY
Investment Grade Rating
Rating agency Long-term rating Short-term rating
BBB- *Negative Outlook **
Baa3 ***Negative Outlook ****
A – 3 *
P – 3 ***
* since 18 January 2019** since 24 May 2019
*** since 12 December 2018**** since 5 April 2018
Südzucker Group, page 16
FINANCIAL TRANSPARENCY
Continued high liquidity
(mn €) 29.02.2016 28.02.2017 28.02.2018 28.02.2019
Net financial debt -555 -413 -843 -1.129
Cash & Cash equivalents / securities 604 725 730 499
Gross financial debt -1.158 -1.138 -1.573 -1.627
Long-term financial debt -731 -914 -1.117 -1.126
Short-term financial debt -427 -224 -456 -501
Bank credit l ines: 798 786 814 849undrawn 433 464 470 350
Syndicated loan facil ity 600 600 600 600undrawn 600 600 600 600
Syndicated loan facil ity Agrana 450 450 450 450undrawn 339 450 450 375
Commercial paper program 600 600 600 600undrawn 475 600 600 370
= Total l iquidity reserves 2.451 2.839 2.850 2.195
Südzucker Group, page 17
FINANCIAL TRANSPARENCY
111 83
500300
100
80
40
2020 2021 2022 2023 2024 2025 2026
Bulletloans
EUR-Bond1.25 %
EUR-Bond1.00 %
AGRANApromissorynotesCommercial Paper Programm 600 mn € (permanent)
Maturity profile of main financial liabilities(mn € as of 30 November 2019)
Syndicated loans 1,050 mn € *
Hybrid Bond 700 mn € (perpetual)variable coupon: 3M-Euribor + 310 bp;
2.71 % p.a. for 31.12.2019 – 31.03.2020 (excluded); payout quarterly
* Maturity: June 2021/300 mn €, August 2022/150 mn €, July 2024/600 mn €
Südzucker Group, page 18
FINANCIAL TRANSPARENCY
NFD/CF 3.2x 1.9x 1.4x 1.0x 1.5x 1.2x 0.7x 1.2x 0.7x 1.2x 3.0x
Equity Ratio 42 % 47 % 51 % 48 % 54 % 53 % 53 % 55 % 56 % 54 % 49 %
1,632
1,065
854791
464536 593 555
413
843
1,129
504 553 606
823
996
697
389480
634693
377
mn
€
Net Financial Debt
Cash flow
Financial key figures
Südzucker Group, page 19
FINANCIAL TRANSPARENCY
Agenda1. Overview and strategy page 3
2. Current highlights page 12
3. Capital Market and Financing page 14
4. Development non-sugar-segments page 20
5. Development segment sugar page 44
6. Financial Highlights Q3 2019/20 page 55
7. Outlook 2019/20 page 67
8. Appendix Long-term development and key figures page 73 Additional information page 80
Südzucker Group, page 20
FINANCIAL TRANSPARENCY
Non-sugar-activities* (I): Strong market position in growing business areas…
Functional FoodRevenues >600 mn €
Global megatrend functional food; ongoing above average growth potential
Positioning as world market leader in main product categories
PortionPackRevenues >100 mn €
European market leader in food and non-food portion packs Growth options outside of Europe
StarchRevenues >900 mn €
Successful growth strategy in specialty starches Growth opportunities secured via investment program
FruitRevenues >1 bn €
World market leader in fruit preparations Sustainable growth and stable margins
PizzaRevenues ~1 bn €
Market leader in Europe and USA in private label business High potential in USA private label business
Bioethanol(mainly CropEnergies)Revenues ~1 bn €
Market leader in Europe Further market potential secured in EU until 2030 (RED II)
Midterm revenues of 5 bn € and EBITDA of 600 mn € * based on 2021/22
Südzucker Group, page 21
FINANCIAL TRANSPARENCY
Non-sugar-activities* (II): …growth secured via projects
Functional FoodRevenues >600 mn €
Capacity extension, respectively preparation at all BENEO sites Enlargement of product range
PortionPackRevenues >100 mn €
Acquisition CustomPack, UK Market entry South Africa
StarchRevenues >900 mn €
Investment program 2013 to 2020 in amount of 400 mn €at sites Aschach, Gmünd, Pischeldorf and Zeitz through new and extended facilities
FruitRevenues >1 bn €
Market entry India Second fruit preparation factory China Participation in fruit preparation producer in Algeria
PizzaRevenues ~1 bn €
Acquisition Richelieu Foods, USA, high market potentialvia development of private label share
Bioethanol(mainly CropEnergies)Revenues ~1 bn €
Further factory optimization and capacity flexibility leads to higher yearly average production volume
Midterm revenues of 5 bn € and EBITDA of 600 mn € * based on 2021/22
Südzucker Group, page 22
FINANCIAL TRANSPARENCY
Segment Special Products
(mn €) 2018/19 2017/18Revenues 2.294 1.997 297 15 %EBITDA 268 255 13 5 %EBITDA-Margin 11,7% 12,8%Depreciation -112 -97 -15 14 %Operating Result 156 158 -2 -1 %Operating Margin 6,8% 7,9%Restructuring and special items -51 -3 -48 > 100Result from companies consolidated at equity 17 30 -13 -46 %Result from operations 122 185 -63 -34 %
Investments 172 551 -379 -69 %Fixed Assets 165 121 44 36 %Financial Assets / Acquisitions 7 430 -423 -98 %
Capital Employed 2.133 2.055 78 4 %RoCE 7,3% 7,7%
Δ
Südzucker Group, page 23
FINANCIAL TRANSPARENCY
Special Products segment: Overview
* incorporates AGRANA bioethanol and starch activities
Pizza39 %
Functional Food22 %
PortionPack5 %
Starch*34 % 2,294
mn €
Leading market positions in all four divisions Sustainably high cash flow quality High depreciation level in light of
internal/external growth Very sound fundamental development Growth based on global megatrends:
unchanged trend to alternative andfunctional food ingredients
further increase in demand forconvenience products
unbroken global demand growth foranimal feed (e.g. Gluten)
Continuous capacity adjustment followsmarket growth 120
171 184158 156
2014/15 2015/16 2016/17 2017/18 2018/19
Revenue split 2018/19
Operating Result (mn €)
Südzucker Group, page 24
FINANCIAL TRANSPARENCY
Special Products segment: Division Functional Food
Offstein
Sales OfficesRegional CentersProduction facility
BENEO bundles functional food activities 5 production sites globally and international
distribution network Main product categories:
Prebiotic fibres from chicory roots: Core productsInulin and Oligofructose
Functional carbohydrates from sugar beet: Core products Isomalt (sole sugar replacer made out of sugar) and Palatinose™ (functional sugar withprolonged energy allocation)
Functional ingredients from rice: e.g. ricestarches, rice flours and rice proteins
Distribution of functional wheat protein (Gluten), produced in Südzucker Group
World market leader for functional chicory- and rice products as well as for Isomalt/Palatinose™
Ongoing global increase in demand for functionalfood ingredients
Increasing awareness for healthy nutrition and growing per-capita income (emerging markets)
Südzucker Group, page 25
FINANCIAL TRANSPARENCY
6 production sites and distribution within EU Main product categories:
Starch products: Specialty starches for paper, textile-, cosmetics-, pharmaceutical andconstruction industries; focus on organic and GM-free starches for food industries
Bioethanol production: Bioethanol production fromgrain and production of by-products (food andanimal feed)
Leading market position in main product categories Ongoing growth for speciality starches Worldwide strongly growing demand for animal feed Mandatory ethanol blending within EU
High investment volume (~ 400 mn €) in current cycle: New starch factory Pischelsdorf (2013) New starch factory Zeitz (2016) Extension starch factory Aschach (2017) Extension starch factory Pischelsdorf (2020)
Special Products segment: Division Starch*
Zeitz
* incorporates AGRANA bioethanol and starch activities
Production starch
Gmünd (A)Pischelsdorf (A)Aschach (A)
Szabadegyhaza (HU)Tandarei (RO)
Production bioethanol
Zeitz (DE)
Südzucker Group, page 26
FINANCIAL TRANSPARENCY
Special Products segment: Division Pizza
11 production sites in EU (6) and in USA (5); distribution in EU and USA
Main product categories: Deep frozen and chilled pizza
Pasta dishes
Snacks & baguettes
Pourables
Mostly private label business forfood retailing („B2B“)
Market leader private label pizza market in Europe and USA Employees: ~ 3,500 Pizzas per day: ~ 3.5 mn Revenues: ~ 1 bn €
Strong platform for further growth
# 1 Europe
# 1 USA
Public Warehouses – PourablesPublic Warehouses – PizzaProduction facility
Südzucker Group, page 27
FINANCIAL TRANSPARENCY
Special Products segment: Division PortionPack
Oud Beijerland (NL)
Landgraaf (NL)
La Llagosta
PragueHerentals (B)
Oud-Beijerland (NL)
Nuremberg
Telford
Vienna
Production facility Trading companies
6 production sites in EU; distribution in EU Main product categories:
Coffee supplies (sugar, milk…)
Biscuits
Chocolates
Breakfast
Seasoning
Sweets & Snacks
Fruit purees
Other unit packed products (e.g. for hotels, etc.)
European market leader for portion packs for foodindustry
Unchanged trend for unit packed products and„out-of-home“ consumption
September 2018, Acquisition CustomPack, Telford/Great Britain
Südzucker Group, page 28
FINANCIAL TRANSPARENCY
Special Products segment: Strategy
Functional FoodUsage of global
platform, open up newmarkets; product
innovations
PortionPackExtension of EU No. 1 position; expansion of
product portfolio
Special Products
StarchExtension of successfulniche strategy; increase
market share via continuous capacity
increase
PizzaKeep market position
EU/extend USA; increase profitability; clear
differentiation against competitors
Südzucker Group, page 29
FINANCIAL TRANSPARENCY
Special Products segment: Outlook 2019/20
Increase in production and sales volumes in all divisions Positive trend in ethanol market continues Support through improved sugar market environment
Revenues
Operating Result
Significant increase in operating result (prev. year: 156 mn €)
Moderate increase in revenues(prev. year: 2,294 mn €)
Südzucker Group, page 30
FINANCIAL TRANSPARENCY
Segment CropEnergies
(mn €) 2018/19 2017/18Revenues 693 808 -115 -14 %EBITDA 72 111 -39 -35 %EBITDA-Margin 10,4% 13,7%Depreciation -39 -39 0 0 %Operating Result 33 72 -39 -54 %Operating Margin 4,7% 8,9%Restructuring and special items 10 -1 11 -Result from companies consolidated at equity 0 0 0 -Result from operations 43 71 -28 -39 %
Investments 13 20 -7 -32 %Fixed Assets 13 20 -7 -32 %Financial Assets / Acquisitions 0 0 0 -
Capital Employed 456 452 5 1 %RoCE 7,2% 15,9%
Δ
Südzucker Group, page 31
FINANCIAL TRANSPARENCY
São Paulo
AmsterdamRotterdam
ZeitzWanzeLoon-Plage
Wilton
Santiago de Chile
CropEnergies segment: Overview
Production facility Tank storage Distribution
4 production sites in EU; offices/distribution sites in EU and South America
Main product categories: Bioethanol as fuel and traditional applications
(1.3 mn m³ p.a.) Food and animal feed (>1 mn t p.a.)
EU market leader Megatrend renewable energies
More renewable energy in transport in 2030(RED II: 14 % (max. 7 % 1G)
Reduction of greenhouse gas emissions Higher independency from imported oil
Sustainable raw materials from European agricultureand complete utilization
Südzucker Group, page 32
FINANCIAL TRANSPARENCY
CropEnergies segment: Market environment (I)
Wanze
Higher ethanol and lower raw material prices in 1st-3rd quarter Ethanol*: 605 (475) €/m³ Grain**: 178 (187) €/t
Feedstock supply 2019/20 Unchanged EU biomass situation:
starch long, protein short Net imports protein sources: 42 mn t,
net exports starch sources: 16 mn t
Stagnating/shrinking farm acreage in the EU
EU grain harvest: 316 mn t (+9 %) Exceeds demand of 290 mn t by 9 %
Increase of ending stocks by 21 % to 57 mn t
World grain harvest***: 2,162 mn t (+1 %) 1 % below demand of 2,188 mn t
Ending stocks 594 mn t (-4 %)
* Ethanol T2 FOB Rdam ** Wheat (Euronext Paris), next date of expiry *** all varieties, except rice
100
150
200
250
300
350
200
300
400
500
600
700
800
(€/t
)
(€/m
3 )
Euronext Paris Wheat No. 2
Nettorohertrag für Weizen‐EtOH
NYMEX Fuel EtOH T2 FOB Rdm.
Quotation: Wheat €/t / Ethanol €/m3
Südzucker Group, page 33
2.3 2.5 2.7
1.5 1.5 1.50.9 0.9 0.90.8 0.7 0.8
0
2
4
6
2018 2019e 2020e
Other EU Germany France UK EU ethanol market 2020e (mn m3)
Production: 5.3 +2 % (add. 2.4 non-fuel) Consumption: 5.9 +6 % (add. 2.6 non-fuel)
Increasing blending obligations in EU countries in 2020
6 % GHG-target 2020 requires more non-fossil alternatives
RED II: 1G max 7 %, but not more than 2020 +1 %
E10 available in more European countries In the Netherlands since 1 Oct 2019 Slovakia, Hungary and Denmark as of
1 Jan 2020 2020 plans: Austria, Lithuania, Latvia
CropEnergies segment: Market environment (II)
EU sales fuel ethanol (mn m³)
E10 availability across Europe – Sept. 2019Source: F.O. Licht
Source: ePure
Südzucker Group, page 34
FINANCIAL TRANSPARENCY
Ethanol… as direct blend to petrol
(e.g. E5, E10, E85)
as component in ETBE (octane booster)
E10 reduces CO2, NOx and particulate matter WLTP* benchmark, label in tank flap of
all new cars Potential savings (EU): >20 Mt CO2eq.
(8 million less cars on the road)
Potential for 20 % ethanol blending (Super E20) Potential savings: >40 Mt CO2eq.
(16 million less cars on the road) Successful racing results
(Porsche/Nürburgring)
Renewable ethanol – advantages
Source: bdbe
* worldwide harmonized light-duty vehicle test
Super (E5) Reference
Super E10 Measurement: particulate matter
Super E10 Measurement: Nitrogen Oxide
Reduction by
Ø 71 %
Ø 25 %
Reduction by
BlendingEthanol
Petrol
E5 E10 E20 E85
Südzucker Group, page 35
FINANCIAL TRANSPARENCY
CropEnergies segment: Strategy
EnforceR&D activities
Full usageof production
capacities
Further efficiency gains
CropEnergies
Expanddiversification
Strengthen leadingmarket position
Targeted facilitydevelopment
Südzucker Group, page 36
FINANCIAL TRANSPARENCY
CropEnergies segment: Outlook 2019/20
Operating result of approximately 100 mn € expected(prev. year: 33 mn €)
Revenues of approximately 810 mn € expected(prev. year: 693 mn €)
Still robust demand for climate-friendly alternatives to fossil fuels … … paired with sales revenues for renewable ethanol from European value
creation far exceeding previous year‘s level
Revenues
Operating Result
Südzucker Group, page 37
FINANCIAL TRANSPARENCY
Segment Fruit
(mn €) 2018/19 2017/18Revenues 1.179 1.161 18 2 %EBITDA 115 114 1 2 %EBITDA-Margin 9,8% 9,7%Depreciation -38 -38 0 0 %Operating Result 77 76 1 2 %Operating Margin 6,6% 6,5%Restructuring and special items 0 0 0 -Result from companies consolidated at equity 0 0 0 -Result from operations 77 76 1 2 %
Investments 62 49 13 26 %Fixed Assets 56 49 7 14 %Financial Assets / Acquisitions 6 0 6 -
Capital Employed 830 844 -14 -2 %RoCE 9,3% 9,0%
Δ
Südzucker Group, page 38
FINANCIAL TRANSPARENCY
28 production sites globally; distribution in more than80 countries
World market leader in fruit preparations (market share >30 %)
Main customer groups: Dairy companies Ice cream producers Bakeries Food service industry
Unique global structure for sourcing, production and distribution
Fruit segment: Fruit preparations
Production facility
Südzucker Group, page 39
FINANCIAL TRANSPARENCY
14 production sites in Europe and one in China
Main product categories: Fruit juice concentrates Beverage compounds Fruit wines Flavouring NFC-Juices
European market leader for fruit juice concentrates
Trend towards fruit juices and bio-products unchanged
Fruit segment: Fruit juice concentrates
Production facility
Südzucker Group, page 40
FINANCIAL TRANSPARENCY
Fruit segment: Strategy
Development of innovations
Usage of internal/externalgrowth options
Develop newmarkets togetherwith customers
Further costsaving measures
Further usageof global
growth trends
Fruit
Enhance regional diversification
Südzucker Group, page 41
FINANCIAL TRANSPARENCY
Significant earnings decrease in division fruit preparations Significantly lower earnings in division fruit juice
concentrates due to lower capacity utilisation and loweravailability of apples
Fruit segment: Outlook 2019/20
Revenues
Operating Result
Division fruit preparations with slightly rising salesvolumes and stagnating revenues
Stable revenues in division fruit juice concentrates
Revenues on previous year‘s level(prev. year: 1,179 mn €)
Operating result significantly below previous year‘s levelexpected (prev. year: 77 mn €)
Südzucker Group, page 42
FINANCIAL TRANSPARENCY
Summary non-sugar-segments
Revenues
EBITDA
Operating Result
2018/19 2019/20e 2021/22e
4.2 bn €
455 mn €
266 mn €
~5.0 bn €
~600 mn €
~400 mn €
Sound earnings level, despite low ethanol and sugar prices Basis for further revenues and earnings growth secured via investments
Südzucker Group, page 43
FINANCIAL TRANSPARENCY
Agenda1. Overview and strategy page 3
2. Current highlights page 12
3. Capital Market and Financing page 14
4. Development non-sugar-segments page 20
5. Development segment sugar page 44
6. Financial Highlights Q3 2019/20 page 55
7. Outlook 2019/20 page 67
8. Appendix Long-term development and key figures page 73 Additional information page 80
Südzucker Group, page 44
FINANCIAL TRANSPARENCY
Segment Sugar
(mn €) 2018/19 2017/18Revenues 2.588 3.017 -429 -14 %EBITDA -102 278 -380 -EBITDA-Margin -3,9% 9,2%Depreciation -137 -139 2 -1 %Operating Result -239 139 -378 -Operating Margin -9,2% 4,6%Restructuring and special items -769 24 -793 -Result from companies consolidated at equity 5 -28 33 -Result from operations -1.003 135 -1.138 -
Investments 147 173 -26 -15 %Fixed Assets 145 171 -26 -15 %Financial Assets / Acquisitions 2 2 0 -10 %
Capital Employed 2.653 3.299 -647 -20 %RoCE -9,0% 4,2%
Δ
Südzucker Group, page 45
FINANCIAL TRANSPARENCY
Sugar segment: Restructuring plan parameters
Focus on EU market, opportunistic world market exports 5.1 4.4 mn tSugar
production*
Closures of 5 sugar factories in Germany, France and Poland 29 24Number of
sugar factories
Reduction of employees in productionand administration, further centralization
~7,000 ~6,300 FTEEmployees
* Based on 125 days campaign norm
Südzucker Group, page 46
FINANCIAL TRANSPARENCY
Sugar segment: Restructuring plan measures
Kürzung Erweiterungs-investitionen
Organization Simplification processes and management structures■ Cutting-back administration Belgium, Germany, France and Poland■Workplace reduction in administration in relation
to closure of locations■ Adjustment of global sugar sales organization
Factory structure Improvement of production costs and supply chain■ Reduction of Ø-sugar production about 0.7 mn t/p.a.■ Structural campain length at least 125 days per factory■ Closure of sugar factories Germany (2) and France (2)
following campaign 2019 as well as Poland (1) before campaign 2019■Optimization sugar logistic structure (Assortment and storage sites)
Administration cost reduction
Reduction of fixed costs, maintenance and capex
Südzucker Group, page 47
FINANCIAL TRANSPARENCY
Impact from restructuring and special items
2018/19 2019/20e 2020/21e 2021/22e 2022/23e
p&l
cash impacton NFD
~150 mn €prov. social plan; depreciationsfixed assets, contracts
673 mn €goodwill-impairmentsugar
~100 mn €cost savings dependent on sugar worldmarket price and further restructuringexpenses
~40 mn € (cash out)mainly social plan
~150 mn € (cash in)working capital release via volume reduction
Südzucker Group, page 48
FINANCIAL TRANSPARENCY
Sugar balance world*
* F.O. Licht estimates, February 2020
2018/19: Balanced market; significant decrease in production
2019/20e: Market in significant deficit(-11.1 mn t); further reduction in production below further growingconsumption EU slightly below previous year‘s level
Brasil: Currently high ethanol production India: High inventory level to burden world
market Continued export subsidy program
2020/21e: Market with further deficit(-3 mn t); despite expected increase in production, further decrease in endingstock
174,0 179,6
194,2 185,0174,5
184,2179,6 180,3 182,7 183,4 184,9 186,6
71,2 69,178,6 79,1
68,0 65,0
2015/16 2016/17 2017/18 2018/19 2019/20e 2020/21e
39,6%* 38,3%* 43,0%* 43,1%* 36,8%* 34,8%*
Production Consumption Ending Stock * Stocks to use ratio
Südzucker Group, page 49
FINANCIAL TRANSPARENCY
Sugar price development: Supply and demand as main drivers
* World market price ex works: without transportation and other costs
0
100
200
300
400
500
600
700
800
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
World market price* EU price ex works
€/t
Südzucker Group, page 50
FINANCIAL TRANSPARENCY
Sugar balance EU* (in mn t)
* EU-Commission on basis SMY∎ Prod. (from beet) ∎ Prod. (from maize) ∎ Import ∎ Consumption ∎ Export ∎ Ending stocks
20.2 19.3 18.5 19.6 19.0 19.0
1.51.4
1.4
3.41.7 1.2
0
5
10
15
20
25
19.5
14.916.8
21.3
17.6 17.3
0.8
0.8
0.8
0.6
0.6 0.6
2.8
2.9
2.5
1.3
1.9 2.0
4.01.9 2.2 2.5 1.8 1.6
SMY 2017/18 Record harvest led to high
export surplus Increasing price pressure
during year burdenedannual contracts 2018/19
SMY 2018/19 Drought related lower
harvest leads to decrease in exports and lower inventory level
Spot price increase to import parity level
SMY 2019/20e Cultivation restriction leads
to almost stable production and balanced market
Price increase for open annual contracts 2019/20
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20e
Südzucker Group, page 51
FINANCIAL TRANSPARENCY
250
300
350
400
450
500
550
600
Average EU sugar price to increase gradually
EU Spot PricesEU Price Reporting
Campaign 2017: Abolition of quota system Extension of acreage Record yield Record sugar production ~ 21 mn t High exports, inventory increase Price pressure
Campaign 2019: Restricted cultivation area Sugar production 17-18 mn t Low exports Gradual price increase EU net importer since Jan 2019
Campaign 2018: Drought, bad harvest Sugar production ~ 17 mn t Low exports, inventory decrease Price increase spot market Too late for contractual market
Südzucker Group, page 52
FINANCIAL TRANSPARENCY
Reduction world market exports and stronger
focus on EU sales
Sugar segment: Strategy
Maximum utilization of
factory capacity
Capacityadjustment
to new market environment
Further centralization of administration
Cost savings across the whole
value chain
Defend and extendleading EU
market position
Sugar EU
Südzucker Group, page 53
FINANCIAL TRANSPARENCY
Decrease in sales volumes and reduced harvest expectation In average higher sales revenues
Sugar segment: Outlook 2019/20
Since start SMY 2019/20 (October 2019) earningsimprovement against H2 2018/19 via price increase
Earnings improvement potential not fully exploited as not all sugar contracts were up for negotiation and due to decline in sales volumes
Significantly higher production costs due to higher rawmaterial costs and raw material secure premium
Operating result expected in range -200 to -260 mn € (prev. year: -239 mn €)
Significant decrease in revenues (prev. year: 2,588 mn €)Revenues
Operating Result
Südzucker Group, page 54
FINANCIAL TRANSPARENCY
Agenda1. Overview and strategy page 3
2. Current highlights page 12
3. Capital Market and Financing page 14
4. Development non-sugar-segments page 20
5. Development segment sugar page 44
6. Financial Highlights Q3 2019/20 page 55
7. Outlook 2019/20 page 67
8. Appendix Long-term development and key figures page 73 Additional information page 80
Südzucker Group, page 55
FINANCIAL TRANSPARENCY
(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %Revenues 1.713 1.717 -0,2 5.028 5.192 -3,2EBITDA 158 85 87,4 373 345 8,2
EBITDA margin 9,2% 4,9% 7,4% 6,6%Depreciation -119 -108 10,9 -260 -229 13,6Operating result 39 -23 - 113 116 -2,5
Operating margin 2,3% -1,4% 2,2% 2,2%Restructuring costs/special items -7 8 - -12 7 -Result from companies consolidated at equity -60 5 - -58 16 -EBIT -28 -10 > 100 43 139 -69,1Net earnings attributable to shareholders -73 -31 > 100 -87 -3 > 100Earnings per share (€) -0,35 -0,15 > 100 -0,42 -0,01 > 100Cash flow 107 66 62,1 283 293 -3,5Investments in fixed assets* 74 87 -15,3 224 254 -11,7Net financial debt 1.359 781 74,1Employees 19.947 20.129 -0,9
3rd quarter 1st-3rd quarter
Group income statement
* Including intangible assets
Südzucker Group, page 56
FINANCIAL TRANSPARENCY
Financial Highlights – 9M 2019/20
Revenues
EBITDA
Operating Result
Cash flow
Earnings per share
Net financial debt
-3 % to 5,028 (5,192) mn €
+8 % to 373 (345) mn €
-3 % to 113 (116) mn €
Sugar: 1,739 (2,060) mn €
Non-Sugar: 3,289 (3,132) mn €
-4 % to 283 (293) mn €
-0.42 (-0.01) €
1,359 (781) mn €
Sugar: -37 (5) mn €
Non-Sugar: 410 (340) mn €
Sugar: -146 (-83) mn €
Non-Sugar: 259 (199) mn €
Südzucker Group, page 57
FINANCIAL TRANSPARENCY
Overview segments 9M 2019/20
Sugar
SpecialProducts
CropEnergies
Fruit
Group
(mn €) 2019/20 2018/19 abs. % 2019/20 2018/19 abs. %3rd quarter 1st-3rd quarter
Revenues 616 671 -55 -8,1 1.739 2.060 -321 -15,6EBITDA 13 -26 39 - -37 5 -42 -Operating result -54 -85 31 -37,5 -146 -83 -63 75,5
Revenues 604 584 20 3,4 1.796 1.710 86 5,0EBITDA 86 70 16 21,2 230 202 28 13,7Operating result 56 42 14 31,6 143 118 25 21,0
Revenues 199 183 16 8,7 604 532 72 13,5EBITDA 37 15 22 > 100 102 48 54 > 100Operating result 27 5 22 > 100 70 19 51 > 100
Revenues 294 279 15 5,4 889 890 -1 -0,1EBITDA 22 26 -4 -15,6 78 90 -12 -13,5Operating result 10 15 -5 -35,5 46 62 -16 -26,0
Revenues 1.713 1.717 -4 -0,2 5.028 5.192 -164 -3,2EBITDA 158 85 73 87,4 373 345 28 8,2Operating result 39 -23 62 - 113 116 -3 -2,5
Südzucker Group, page 58
FINANCIAL TRANSPARENCY
Segment Sugar: Development 9M 2019/20
Revenues: Decline slowed during 3rd quarter. Reduction driven by lower sales revenues and significantly lower sales volumes following below average 2018 and 2019 harvests caused by dry weather.
Operating result: Expected operating loss caused by EU sugar market price level not covering costs and drought driven lower harvests 2018 and 2019 leading to sharply lower sales volumes, especially exports. Result disburdened by inventory write-down already booked in financial year 2018/19.
(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %
Revenues 616 671 -8,1 1.739 2.060 -15,6EBITDA 13 -26 - -37 5 -
EBITDA margin 2,2% -4,0% -2,1% 0,2%Depreciation -67 -59 14,1 -109 -88 24,9Operating result -54 -85 -37,5 -146 -83 75,5
Operating margin -8,7% -12,8% -8,4% -4,0%
3rd quarter 1st-3rd quarter
Südzucker Group, page 59
FINANCIAL TRANSPARENCY
Segment Special Products: Development 9M 2019/20
Revenues: Revenue increase due to higher volumes, especially for starch and sweetener products, growth primarily driven by increased ethanol sales revenues.
Operating result: Accordingly, operating result improvement. Rising raw materials and fixed costs were more than compensated by the sustained positive revenue development.
(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %
Revenues 604 584 3,4 1.796 1.710 5,0EBITDA 86 70 21,2 230 202 13,7
EBITDA margin 14,1% 12,0% 12,8% 11,8%Depreciation -30 -28 5,4 -87 -84 3,6Operating result 56 42 31,6 143 118 21,0
Operating margin 9,2% 7,3% 7,9% 6,9%
3rd quarter 1st-3rd quarter
Südzucker Group, page 60
FINANCIAL TRANSPARENCY
Segment CropEnergies: Development 9M 2019/20
Revenues: Revenue increase due to significantly higher ethanol salesrevenues.
Operating result: Earnings more than tripled in first nine months. Higher net raw material costs were more than offset by significantly better ethanol sales revenues.
(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %
Revenues 199 183 8,7 604 532 13,5EBITDA 37 15 > 100 102 48 > 100
EBITDA margin 18,6% 8,0% 16,9% 9,1%Depreciation -10 -10 6,1 -32 -29 7,8Operating result 27 5 > 100 70 19 > 100
Operating margin 13,3% 2,7% 11,6% 3,6%
3rd quarter 1st-3rd quarter
Südzucker Group, page 61
FINANCIAL TRANSPARENCY
Segment Fruit: Development 9M 2019/20
Revenues: Fruit preparations division’s revenues slightly increased, with slightly higher sales volumes. Fruit juice concentrates division’s significantly higher volumes were not enough to completely offset declining sales revenues.
Operating result: Significant earnings reduction. Slightly higher sales volumes were not enough to offset higher costs in the fruit preparations division. The fruit juice concentrates division’s declining sales revenues could not be fully compensated by higher volumes and lower raw material costs.
(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %
Revenues 294 279 5,4 889 890 -0,1EBITDA 22 26 -15,6 78 90 -13,5
EBITDA margin 7,5% 9,4% 8,7% 10,1%Depreciation -12 -11 11,8 -32 -28 14,5Operating result 10 15 -35,5 46 62 -26,0
Operating margin 3,3% 5,5% 5,2% 7,0%
3rd quarter 1st-3rd quarter
Südzucker Group, page 62
FINANCIAL TRANSPARENCY
Income statement (I)
Result from companies consolidated at equity: Sugar segment -69 (2) mn € mainly related to its share in ED&F Man, Studen Group and
the joint-venture distributor Maxi. Special products segment posted 11 (14) mn € for its share of earnings from Hungrana Group's starch and bioethanol businesses.
Financial result: Financial result -31 (-22) mn €; comprises net interest result of -19 (-16) mn € and
other financial result of -12 (-6) mn €.
(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %
Revenues 1.713 1.717 -0,2 5.028 5.192 -3,2Operating result 39 -23 - 113 116 -2,5Restructuring costs/special items -7 8 - -12 7 0,0Result from companies consolidated at equity -60 5 - -58 16 -Result from operations -28 -10 > 100 43 139 -69,1Financial result -14 -4 > 100,0 -31 -22 40,9Earnings before income taxes -42 -14 > 100 12 117 -89,9
3rd quarter 1st-3rd quarter
Südzucker Group, page 63
FINANCIAL TRANSPARENCY
Income statement (II)
Taxes on income: -47 (-81) mn €. Especially effect of losses in segment sugar for which there was no
recognition of deferred taxes. Minority interests:
Mainly attributable to the co-owners of AGRANA Group and CropEnergies Group Earnings per share (EPS):
-0.42 € (-0.01 €)
(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %
Earnings before income taxes -42 -14 > 100 12 117 -89,9Taxes on income -14 -14 1,5 -47 -81 -41,7Net earnings for the year -56 -28 98,9 -35 36 -of which attributable to Südzucker AG shareholders -73 -31 > 100 -87 -3 > 100of which attributable to hybrid capital 3 3 -3,0 10 10 -1,0of which attributable to minority interests 14 0 - 42 29 44,1
Earnings per share (€) -0,35 -0,15 > 100 -0,42 -0,01 > 100
3rd quarter 1st-3rd quarter
Südzucker Group, page 64
FINANCIAL TRANSPARENCY
(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %Cash flow 107 66 62,1 283 293 -3,5Increase (-)/ Decrease (+) in working capital -160 4 - -41 195 -Investments in f ixed assetsSugar segment -24 -40 -40,6 -73 -103 -29,3Special products segment -34 -30 11,6 -101 -109 -6,6CropEnergies segment -7 -4 81,6 -20 -9 > 100Fruit segment -9 -13 -27,0 -30 -33 -9,6Total investments in f ixed assets -74 -87 -15,3 -224 -254 -11,7Investments in f inancial assets/acquisitions -4 -6 -37,3 -10 -15 -32,0Total investments* -78 -93 -16,1 -234 -269 -12,8
Dividends paid -6 -6 -3,5 -97 -156 -37,7
3rd quarter 1st-3r d quarter
Cash flow statement
* incl. investments in intangible assets
Cash flow: Cash flow at 283 (293) mn € and came in at 5.6 (5.6) % of revenues.
Working Capital: Cash outflow from the increase in working capital of – 41 mn € – following cash inflow of 195 mn € in the
previous period – resulted primarily from increase in inventory book values in sugar, special products and fruit segments along with higher trade receivables. Development partly offset by concurrent increase in liabilities to beet growers.
Investments in fixed assets: Continuation of already communicated projects
Südzucker Group, page 65
FINANCIAL TRANSPARENCY
Balance sheet
Non-current assets: Decrease of 740 mn € mainly due to goodwill impairment in segment sugar in 2018/19
Net financial debt: Increase by 578 mn € against previous year. Increase by 230 mn € against 28 February 2019. First-time
application of IFRS 16 (leases) on 1 March 2019 resulted in recognition of leasing liabilities of 136 mn € in current and non-current financial liabilities.
(mn €) 30 November 2019 30 November 2018 +/- in %
AssetsNon-current assets 4.496 5.236 -14,1Current assets 3.907 3.716 5,1Total assets 8.403 8.952 -6,1
Liabil ities and shareholders' equityShareholders' equity 3.764 4.911 -23,4Non-current liabilities 2.781 2.314 20,2Current liabilities 1.858 1.727 7,5Total liabil ities and shareholders' equity 8.403 8.952 -6,1
Net financial debt 1.359 781 74,1Equity ratio 44,8% 54,9%Net financial debt in percent of equity (gearing) 36,1% 15,9%
Südzucker Group, page 66
FINANCIAL TRANSPARENCY
Agenda1. Overview and strategy page 3
2. Current highlights page 12
3. Capital Market and Financing page 14
4. Development non-sugar-segments page 20
5. Development segment sugar page 44
6. Financial Highlights Q3 2019/20 page 55
7. Outlook 2019/20 page 67
8. Appendix Long-term development and key figures page 73 Additional information page 80
Südzucker Group, page 67
FINANCIAL TRANSPARENCY
Outlook 2019/20 (I): Revenues and Operating result
Sugar
Revenues (€)
2018/19Operating result (€)
2019/20e
Special Products
CropEnergies
Fruit
Group
2018/19 2019/20e
2.6 bn -239 mn -200 to -260 mn
2.3 bn
693 mn
1.2 bn
6.8 bn
~810 mn
6.7 to 7.0 bn
156 mn
33 mn
77 mn
27 mn
~100 mn
70 to 130 mn
Südzucker Group, page 68
FINANCIAL TRANSPARENCY
Outlook 2019/20 (II): Other key figures
EBITDA
2018/19 2019/20e
Depreciation*
InvestmentsFixed Assets
Net Financial Debt
353 mn € 430 to 490 mn €
326 mn € > prev. year
379 mn € < prev. year
1,129 mn € > prev. year
* 2019/20 incl. adjustment for application of IFRS 16
Südzucker Group, page 69
FINANCIAL TRANSPARENCY
Outlook 2019/20 (III): Other key figures
RoCE
2018/19 2019/20e
Cash flow/ Revenues
Equity ratio
0.4 % up to 2 %
5.6 % > 5 %
49.1 % < prev. year
Südzucker Group, page 70
FINANCIAL TRANSPARENCY
Summary
Expectation of at least two difficult transition years realized Expectation H2 with earnings improvement against H2 2018/19 in light of
price increase since October 2019 FY 2019/20e: Operating result -200 to -260 mn € (prev. year: -239 mn €)
FY 2019/20e: Revenues on previous year‘s level andsignificant earnings decrease (operating result prev. year: 77 mn €)
Increase in production and sales volumes in all divisions FY 2019/20e: Significant increase in operating result (prev. year: 156 mn €);
still high cash flow quality
Continuous higher ethanol price level leads to significant earnings increase FY 2019/20e: Operating result of approximately 100 mn € (prev. year: 33 mn €)
Well diversified portfolio High cash flow quality and solid financial key figures, despite temporary
burden in segment sugar Foresighted financing and strong balance sheet ratios
Sugar
Special Products
CropEnergies
Fruit
Group
Südzucker Group, page 71
FINANCIAL TRANSPARENCY
-102
455353
~600
≤350
-150
-50
50
150
250
350
450
550
650
750
850
Sugar
Non-Sugar
Group
Capex
Group outlook midterm EBITDA and capex(in mn €)
EBITDA 2021/22eEBITDA 2018/19 Ø Capex19/20e - 21/22e
Südzucker Group, page 72
FINANCIAL TRANSPARENCY
Agenda1. Overview and strategy page 3
2. Current highlights page 12
3. Capital Market and Financing page 14
4. Development non-sugar-segments page 20
5. Development segment sugar page 44
6. Financial Highlights Q3 2019/20 page 55
7. Outlook 2019/20 page 67
8. Appendix Long-term development and key figures page 73 Additional information page 80
Südzucker Group, page 73
FINANCIAL TRANSPARENCY
(mn €) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20e
Revenues 5.718 6.161 6.992 7.879 7.533 6.778 6.387 6.476 6.983 6.754 6.7-7.0 bnEBITDA 645 775 1.015 1.246 889 453 518 709 758 353 430-490
EBITDA-Margin 11,3% 12,6% 14,5% 15,8% 11,8% 6,7% 8,1% 10,9% 10,8% 5,2%Operating Result 403 521 751 972 622 181 241 426 445 27 70-130
Operating Margin 7,0% 8,5% 10,7% 12,3% 8,3% 2,7% 3,8% 6,6% 6,4% 0,4%Income from operations (EBIT) 392 513 759 955 955 955 554 277 467 -761Earnings before income taxes (EBT) 348 443 660 866 866 866 491 227 426 -784Net earnings 276 346 515 734 734 734 387 181 312 -805
thereof to SZ AG shareholders 200 252 377 592 592 592 280 109 205 -844
Market capitalization 3.230 3.768 4.117 6.850 4.114 2.782 3.834 4.921 3.014 2.625Closing price on February 28/29 17,06 19,90 21,75 33,55 20,15 13,63 13,88 24,10 14,76 12,86Earnings per share (€) 1,06 1,33 1,99 3,08 1,37 0,10 0,53 1,05 1,00 -4,14Dividend per share (€) 0,45 0,55 0,70 0,90 0,50 0,25 0,30 0,45 0,45 0,20
Cash flow 553 606 823 996 697 389 480 634 693 377Investments total 233 251 286 521 399 387 371 493 793 394 < prev. year
Capital Employed 5.374 5.314 5.707 5.950 5.873 5.877 5.791 6.012 6.650 6.072 > prev. yearRoCE 7,5% 9,8% 13,2% 16,3% 10,6% 3,1% 4,2% 7,1% 6,7% 0,4% up to 2 %
Total Assets 7.398 7.260 8.289 8.806 8.663 8.474 8.133 8.736 9.334 8.188Equity 3.443 3.687 3.970 4.731 4.625 4.461 4.473 4.888 5.024 4.018Equity Ratio 46,5% 50,8% 47,9% 53,7% 53,4% 52,6% 55,0% 56,0% 53,8% 49,1% < prev. yearNet Financial Debt (NFD) 1.065 854 791 464 536 593 555 413 843 1.129 > prev. yearGearing (NFD/Equity) 30,9% 23,2% 19,9% 9,8% 11,6% 13,3% 12,4% 8,4% 16,8% 28,1%NFD/Cash flow 1,9x 1,4x 1,0x 0,5x 0,8x 1,5x 1,2x 0,7x 1,2x 3,0x
Long-term development (I): Group
* Investments in Fixed Assets
*
Südzucker Group, page 74
FINANCIAL TRANSPARENCY
Long-term development (II): SegmentsSugar segment
(mn €) 2014/15 2015/16 2016/17 2017/18 2018/19Revenues 3.228 2.855 2.776 3.017 2.588EBITDA 133 48 201 278 -102EBITDA-Margin 4,1% 1,7% 7,3% 9,2% -3,9%Depreciation -126 -127 -129 -139 -137Operating Result 7 -79 72 139 -239Operating Margin 0,2% -2,7% 2,6% 4,6% -9,2%Restructuring and special items -7 4 -12 24 -769Income from operations (EBIT) -5 -43 67 135 -1003
Investments 186 181 271 173 147Fixed Assets 186 181 153 171 145Financial Assets 0 0 118 2 2
Capital Employed 3.199 3.041 3.169 3.299 2.653RoCE 0,2% -2,6% 2,3% 4,2% -9,0%
Special Products segment
(mn €) 2014/15 2015/16 2016/17 2017/18 2018/19Revenues 1.724 1.791 1.819 1.997 2.294EBITDA 192 246 263 255 268EBITDA-Margin 11,2% 13,7% 14,4% 12,8% 11,7%Depreciation -72 -75 -79 -97 -112Operating Result 120 171 184 158 156Operating Margin 7,0% 9,5% 10,1% 7,9% 6,8%Restructuring and special items -3 -2 -4 -3 -51Income from operations (EBIT) 144 192 208 185 122
Investments 126 131 126 551 172Fixed Assets 125 131 126 121 165Financial Assets 1 0 0 430 7
Capital Employed 1.377 1.436 1.499 2.055 2.133RoCE 8,7% 11,9% 12,2% 7,7% 7,3%
CropEnergies segment
(mn €) 2014/15 2015/16 2016/17 2017/18 2018/19Revenues 764 658 726 808 693EBITDA 25 122 135 111 72EBITDA-Margin 3,3% 18,5% 18,6% 13,7% 10,4%Depreciation -36 -35 -37 -39 -39Operating Result -11 87 98 72 33Operating Margin -1,5% 13,2% 13,4% 8,9% 4,7%Restructuring and special items -28 -18 -4 -1 10Income from operations (EBIT) -39 69 94 71 43
Investments 32 17 16 20 13Fixed Assets 32 17 16 20 13Financial Assets 0 0 0 0 0
Capital Employed 518 490 479 452 456RoCE -2,2% 17,7% 20,4% 15,9% 7,2%
Fruit segment
(mn €) 2014/15 2015/16 2016/17 2017/18 2018/19Revenues 1.062 1.083 1.155 1.161 1.179EBITDA 103 102 110 114 115EBITDA-Margin 9,8% 9,4% 9,5% 9,7% 9,8%Depreciation -38 -40 -38 -38 -38Operating Result 65 62 72 76 77Operating Margin 6,1% 5,7% 6,2% 6,5% 6,6%Restructuring and special items -6 -3 0 0 0Income from operations (EBIT) 59 59 72 76 77
Investments 43 42 80 49 62Fixed Assets 43 42 34 49 56Financial Assets 0 0 46 0 6
Capital Employed 782 823 866 844 830RoCE 8,4% 7,5% 8,3% 9,0% 9,3%
Südzucker Group, page 75
FINANCIAL TRANSPARENCY
Maturity profile of main financial liabilities(asof30 November 2019)
Hybrid Bond 2005/perpetual, 700 mn € Issuer call right since 30 June 2015 at the earliest. Pursuant to § 6 (5) and (6) of conditions of issue
the exercise of the call right is subject to having issued, within the twelve months preceding the redemption becoming effective, replacement capital (parity and/or junior securities and/or shares) against issue proceeds at least equal to the amounts payable upon redemption.
Perpetual
Commercial Paper-Program, permanent, 600 mn € Drawn lines: 240 mn €
Bullet loans, 220 mn €
1.25 % Bond 2016/2023, 300 mn €
AGRANA promissory notes, 200 mn €
1.00 % Bond 2017/2025, 500 mn €
Syndicated loans, 1.050 mn € Drawn lines: 45 mn €2021/22/24
Nov. 2022/25/26
Nov 2023
2024/26/29
Nov 2025
Perpetual
Perpetual
Südzucker Group, page 76
FINANCIAL TRANSPARENCY
Hybrid bond: 2018/19 cash flow covenant
Options for hybrid bond 2005 (depending on continuous financial planning): Since 30 June 2015: quarterly variable interest payment, 3M Euribor plus 3.10 % p.a. Period from 31 Dec 2019 to 31 March 2020 (excl.), rate of remuneration fixed at 2.71 % p.a. Since 30 June 2015, bond can be called and redeemed on quarterly basis at nominal value
(according to § 6 (5) & (6) of the terms and conditions) Precondition to use issuer call right is replacement through new hybrid or equity capital
within 12 months A bond repurchase – also partially – is possible at any time Still preferred option: No call of hybrid bond
(mn €) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20e
Revenues 5,718 6,161 6,992 7,879 7,533 6,778 6,387 6,476 6,983 6,754 6.7-7.0 bn
Cash flow / Revenues 9.7% 9.8% 11.8% 12.6% 9,3% 5.7% 7.5% 9.8% 9,9% 5.6% > 5 %
Südzucker Group, page 77
FINANCIAL TRANSPARENCY
Liquidity profile end of period(mn €) Q3 2019/20 Q2 2019/20 Q1 2019/20 Q4 2018/19 Q3 2018/19
Net financial debt -1.359 -1.226 -1.240 -1.129 -781
Cash & Cash equivalents / securities 511 557 552 499 612
Gross financial debt -1.870 -1.783 -1.791 -1.627 -1.393
Long-term financial debt -1.344 -1.310 -1.121 -1.126 -1.138
Short-term financial debt -402 -344 -539 -501 -254
Leasing -124 -130 0 0 0
Bank credit l ines 752 751 811 849 849undrawn 323 305 298 351 301
Syndicated loan 600 600 600 600 600undrawn 600 600 600 600 600
Syndicated loan Agrana 450 450 450 450 450undrawn 405 385 340 375 430
Commercial paper program 600 600 600 600 600undrawn 360 470 370 370 600
Bank credit l ines (undrawn) 323 305 298 351 301+ Cash & cash equivalents / securities 511 557 552 499 612+ Syndicated loan (undrawn) 1.005 985 940 975 1.030+ Commercial paper (undrawn) 360 470 370 370 600= Total l iquidity reserves 2.200 2.317 2.160 2.195 2.543
Südzucker Group, page 78
FINANCIAL TRANSPARENCY
Group balance sheet
(mn €)Intangible assets 1.001 12,2% 1.659 17,8%Fixed assets 2.951 36,0% 2.991 32,0%Shares in companies consolidated at equity 390 4,8% 370 4,0%Other investments and loans 23 0,3% 23 0,2%Securities 19 0,2% 19 0,2%Receivables and other assets 13 0,2% 12 0,1%Deferred tax assets 75 0,9% 80 0,9%Non-current assets 4.471 54,6% 5.153 55,2%
Inventories 1.977 24,1% 2.119 22,7%Trade receivables and other assets 1.230 15,0% 1.319 14,1%Current tax receivables 31 0,4% 33 0,4%Securities 126 1,5% 126 1,3%Cash and cash equivalents 354 4,3% 585 6,3%Current assets 3.717 45,4% 4.181 44,8%
Total assets 8.188 100,0% 9.334 100,0%
28.02.2019 28.02.2018 (mn €)Equity attributable to shareholders of SZ AG 2.476 30,2% 3.456 37,0%Hybrid capital 654 8,0% 654 7,0%Other minority interest 889 10,9% 915 9,8%Shareholder's equity 4.018 49,1% 5.024 53,8%
Provisions for pensions and similar obligations 832 10,2% 781 8,4%Other provisions 246 3,0% 125 1,3%Non-current financial liabilities 1.126 13,8% 1.117 12,0%Other liabilities 14 0,2% 16 0,2%Tax liabilities 23 0,3% 49 0,5%Deferred tax liabilities 159 1,9% 164 1,8%Non-current liabilities 2.398 29,3% 2.251 24,1%
Other provisions 148 1,8% 250 2,7%Current financial liabilities 501 6,1% 456 4,9%Trade payables and other liabilities 1.104 13,5% 1.329 14,2%Current tax liabilities 18 0,2% 25 0,3%Current liabilities 1.771 21,6% 2.060 22,1%
Total liabilities and shareholders' equity 8.188 100,0% 9.334 100,0%
28.02.2019 28.02.2018
Südzucker Group, page 79
FINANCIAL TRANSPARENCY
Agenda1. Overview and strategy page 3
2. Current highlights page 12
3. Capital Market and Financing page 14
4. Development non-sugar-segments page 20
5. Development segment sugar page 44
6. Financial Highlights Q3 2019/20 page 55
7. Outlook 2019/20 page 67
8. Appendix Long-term development and key figures page 73 Additional information page 80
Südzucker Group, page 80
FINANCIAL TRANSPARENCY
Revenues by region 2018/19Germany
(23 %)
EU 28(52 %)
Rest of world(25 %)
6,754 mn €
Revenues share financial year 2018/19 by region in %:EU 28: EU-members (excl. Germany, incl. Great Britain)Rest of the world: Europe (outside EU), America, Africa, Asia, Oceania
Südzucker Group, page 81
FINANCIAL TRANSPARENCY
‐15
‐10
‐5
0
5
10
15
0
50
100
150
200
250
Surplus/Defict (right scale) Total Production (left scale) Consumption (left scale)
World sugar market – unchanged sustainable growth*
* Source: F.O. Licht
Südzucker Group, page 82
Global sugar market: Supply and demand
Egypt-1.35
Brazil+22.22
Canada-1.09
USA-2.96
Mexico+1.27
Guatemala+2.00
Colombia+0.67
Surplus areas/countries
Deficit areas/countries
Morocco-0.71
Swaziland+0.70
Nigeria-1.73
Australia+3.63
Sudan-1.16
Japan-1.22
S. Korea-1.55
Algeria-1.93
Syria-0.58
Saudi Arabia-1.35
Thailand+10.58
Bangladesh-2.40
Malaysia-1.86
Indonesia-5.00
China-5.00
Israel-0.64
Only countries with deficits/surpluses above 500k tonnes are marked (2019/20e)
Taiwan-0.62
India+3.50
Nicaragua+0.51
Kuba+1.00
Spain-1.06
France+2.65
U.K.-0.75
Germany+1.09
Poland+0.63
Italy-1.70
Kenia-0.63
Source: F.O. Licht
Südzucker Group, page 83
FINANCIAL TRANSPARENCY
EU sugar balance
mn t 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 Ø 10years 19/20e
Production EU 18.2 16.2 19.4 18.1 17.6 20.3 15.7 17.6 21.9 18.2 18.3 17.9
• from beet 17.5 15.4 18.7 17.4 16.8 19.5 14.9 16.8 21.3 17.6 17.6 17.3
• from maize 0.7 0.7 0.7 0.7 0.7 0.8 0.8 0.8 0.6 0.6 0.7 0.6
Import 2.5 3.6 3.5 3.7 3.2 2.8 2.9 2.5 1.3 1.9 2.8 2.0
• Import whitesugar 0.6 1.1 0.8 1.0 0.8 0.7 0.7 0.8 0.3 0.6 0.7 n.a.
• EU refining ofimported rawsugar
1.9 2.5 2.7 2.7 2.4 2.1 2.2 1.7 1.0 1.3 2.1 n.a.
Export 2.2 0.8 2.1 1.4 1.4 1.5 1.4 1.4 3.4 1.7 1.7 1.2
Consumption 18.9 19.4 19.6 19.6 20.0 20.2 19.3 18.5 19.6 19.0 19.4 19.0
Ending stock 1.6 1.2 2.4 3.2 2.6 4.0 1.9 2.2 2.5 1.8 2.3 1.6
Source: EU-Commission
Südzucker Group, page 84
FINANCIAL TRANSPARENCY
Ranking global sugar market (I)
Top-producer 2019/20ein mn t
2019/20ein %
∅ 10 years in mn t Top-consumer 2019/20e
in mn t2019/20e
in %∅ 10 years
in mn t
Brazil 34.5 18.4 37.1 India 28.8 15.3 26.4
India 32.0 17.1 29.2 EU 18.5 9.9 18.9
EU 18.8 10.0 18.0 China 16.8 9.0 16.3
Thailand 13.0 7.0 11.7 Brazil 11.8 6.3 12.0
China 11.5 6.1 11.8 USA 11.1 5.9 10.9
USA 8.2 4.4 8.0 Indonesia 7.9 4.2 6.8
Russia 6.4 3.4 5.6 Pakistan 6.6 3.5 5.4
Mexico 6.3 3.4 6.2 Russia 6.4 3.4 6.1
Pakistan 6.0 3.2 5.9 Mexico 5.0 2.7 4.7
Australia 4.9 2.6 4.6 Egypt 4.2 2.2 3.6
Others 45.5 24.3 42.8 Others 70.5 37.6 66.3
Total 187.0 100 180.8 Total 187.7 100 177.4
Source: F.O. Licht
Südzucker Group, page 85
FINANCIAL TRANSPARENCY
Ranking global sugar market (II)
Top-net-exporter 2019/20ein mn t
2019/20ein %
∅ 10 years in mn t Top-net-importer 2019/20e
in mn t2019/20e
in %∅ 10 years
in mn t
Brazil 22.2 44.8 25.1 China 5.0 10.4 4.4
Thailand 10.6 21.4 8.1 Indonesia 5.0 10.4 4.2
Australia 3.6 7.3 3.2 USA 3.0 6.3 2.9
India 3.5 7.1 1.6 Bangladesh 2.4 5.0 2.1
Guatemala 2.0 4.0 1.9 Algeria 1.9 4.0 1.5
Mexico 1.3 2.6 1.4 Malaysia 1.9 4.0 1.7
Cuba 1.0 2.0 0.9 Nigeria 1.7 3.5 1.6
Swaziland 0.7 1.4 0.7 Korea, South 1.5 3.1 1.5
Colombia 0.7 1.4 0.6 Saudi Arabia 1.4 2.9 1.2
EU 0.4 0.8 -1.2 Egypt 1.4 2.9 1.3
Others 3.5 7.1 - Others 22.8 47.5 -
Total 49.5 100 - Total 48.0 100 -
Duty free access into EUSource: F.O. Licht
Südzucker Group, page 86
FINANCIAL TRANSPARENCY
Sugar segment: Production and Distribution*
* Display financial year2018/19
Distribution activitiesBeet sugar factoriesSugar refineries
Poland
France
Germany
Spain
Portugal
Greece
Italy
Autstria
CzechRepublic
RomaniaHungary
SlovakiaMoldova
Bulgaria
Ireland
Great Britain
Bosnia/Herze-govina
Nether-lands
Belgium
Israel
Südzucker Group, page 87
FINANCIAL TRANSPARENCY
Participation in ED&F Man offers a global footprint
Sugar only
Liquid Products onlyCoffee only
Multiple businesses
Participation ~ 35 % Long standing successful history (founded 1783) Truely global footprint (~ 7,000 employees
in more than 60 countries) Beneficiary of long-term growth in global
sugar demand Approx. 10 mn t global sugar trading volume; one of
the largest sugar trader with significant presence in Central and South America, Far East, South East Asiaand Africa
Global agribusiness with leadership positions in the merchanting of sugar, coffee, molasses, animal feed and special crops
Supply chain manager, providing sourcing, processing, logistics, shipping and marketing of agricultural products, including transportation and delivery of products to industrial and commercial clients
Südzucker Group, page 88
FINANCIAL TRANSPARENCY
Segment Sugar: Campaign09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20e
Beet growers 46,000 44,600 43,000 42,600 42,100 41,300 40,300 39,000 37,900 36,700 n.a.
Beet acreage 401,000 388,000 412,000 422,000 396,000 405,000 350,000 385,000 445,000 434,000 392,000
Sugar factories (incl. refineries) 32 32 32 32 32 32 31 31** 31** 31** 30**
Beet processing* 28.4 26.1 31.3 28.7 27.2 34.0 23.7 28.6 36.0 29.3 28.5
Campaignduration 116 103 123 112 102 127 89 107 133 115 112
Sugar production* 4.8 4.2 5.4 4.9 4.7 5.3 4.1 4.7 5.9 4.7 4.5
thereof from beets* 4.4 3.9 4.9 4.5 4.3 5.0 3.8 4.4 5.7 4.6 4.3
thereof raw sugar raffination*
0.4 0.3 0.5 0.4 0.5 0.3 0.4 0.2 0.2 0.1 0.2
*in mn t**incl. 2 refineries
Südzucker Group, page 89
FINANCIAL TRANSPARENCY
Price development for raw and white sugar (ICE US, LIFFE)
100
200
300
400
500
600
700
Jan-
14M
ar-1
4M
ay-1
4Ju
l-14
Sep-
14N
ov-1
4Ja
n-15
Mar
-15
May
-15
Jul-
15Se
p-15
Nov
-15
Jan-
16M
ar-1
6M
ay-1
6Ju
l-16
Sep-
16N
ov-1
6Ja
n-17
Mar
-17
May
-17
Jul-
17Se
p-17
Nov
-17
Jan-
18M
ar-1
8M
ay-1
8Ju
l-18
Sep-
18N
ov-1
8Ja
n-19
Mar
-19
May
-19
Jul-
19Se
p-19
Nov
-19
Jan-
20
Quo
tatio
n fo
r sug
ar in
€ /
ton
White sugar contract No. 5 LIFFE London (Future contract switching upon expiry)
Raw sugar contract No. 11 ICE US (Future contract switching upon expiry)
100
200
300
400
500
600
700
Feb-
11
Feb-
12
Feb-
13
Feb-
14
Feb-
15
Feb-
16
Feb-
17
Feb-
18
Feb-
19
Feb-
20
Quo
tatio
n fo
r sug
ar in
€ /
ton
Südzucker Group, page 90
FINANCIAL TRANSPARENCY
Price development wheat and maize (Euronext)
100
120
140
160
180
200
220
240
260
280
300
Jan-
14M
ar-1
4M
ay-1
4Ju
l-14
Sep-
14N
ov-1
4Ja
n-15
Mar
-15
May
-15
Jul-
15Se
p-15
Nov
-15
Jan-
16M
ar-1
6M
ay-1
6Ju
l-16
Sep-
16N
ov-1
6Ja
n-17
Mar
-17
May
-17
Jul-
17Se
p-17
Nov
-17
Jan-
18M
ar-1
8M
ay-1
8Ju
l-18
Sep-
18N
ov-1
8Ja
n-19
Mar
-19
May
-19
Jul-
19Se
p-19
Nov
-19
Jan-
20
€ /
ton
Wheat price (Future contract switching upon expiry)Price for maize (Future contract switching upon expiry)
100
120
140
160
180
200
220
240
260
280
300
Feb-
11
Feb-
12
Feb-
13
Feb-
14
Feb-
15
Feb-
16
Feb-
17
Feb-
18
Feb-
19
Feb-
20
€ /
ton
Südzucker Group, page 91
FINANCIAL TRANSPARENCY
This presentation contains forward looking statements. The statements are based on current assumptions and estimates made by the executive board and information currently available to its members. The forward looking statements are not to be viewed as guarantees of the future developments and results presented therein. Future developments and results are in fact dependent on a variety of factors and are subject to various risks and imponderables. They are based on assumptions that could in fact prove to be invalid. The risk management report in the 2018/19 annual report on pages 84 to 96 presents an overview of the risks. We assume no obligation to update the forward-looking statements made in this presentation.
This presentation includes percentage and number rounding. Typing and printing errors reserved.
Written and visual value statements are standardized as follows:
Disclaimer
± 1%stable
/± 4-10%moderate
/> ± 10%significant
/± 1-4%slight
Südzucker Group, page 92
FINANCIAL TRANSPARENCY
Contact
Nikolai BaltruschatHead of Investor RelationsTel.: +49 (621) 421 – [email protected]
Bernhard JuretzekManager Investor RelationsTel.: +49 (621) 421 – [email protected]
Sandra KochnerAssistantTel.: +49 (621) 421 – [email protected]
Südzucker AGMaximilianstrasse 1068165 Mannheim, [email protected]
Financial calender
22 April 2020Preliminary figures financial year 2019/20
14 May 2020Press and analysts‘ conference fiscal 2019/20
9 July 2020Q1 – Quarterly Statement 2020/21
16 July 2020Annual general meeting for fiscal 2019/20
8 October 2020Q2 – 1st half year report 2020/21
14 January 2021Q3 – Quarterly Statement 2020/21
Investor Relations