Südzucker Group€¦ · Südzucker Group: Market Position and ... Income from operations (EBIT) 150 104 93 Investments 58 62 166. ... sugar portion pack manufacturer SAES, Barcelona

Südzucker GroupThomas Kölbl (CFO)

Investor Roadshow October/November 2010

FINANCIAL TRANSPARENCY

2Südzucker Group, page

Agenda

1. Overview and strategic objectives page 3

2. Development of Segments

Sugar page 7

Special Products page 14

CropEnergies page 23

Fruit page 28

3. Financial Highlights H1 2010/11 page 32

4. Outlook 2010/11 page 43

5. Appendix

Annual Financial Statement 2009/10 page 46

Long-term development and key figures page 63

Additional information page 70



Südzucker Group at a glanceGroup revenues 5.7 bn € *

Global food company with headquarters and stock quotation in Germany (MDAX, MSCI; Market Cap ~ 3 bn €)

Approx. 70 % of revenues generated outside Germany

Defensive, non-cyclical business model

Development of new growth markets (e.g. Russia, China, Brazil)

Early market entry into growing business platforms with BENEO (Functional Food) and Fruit Preparations

Long-term growth option Bioethanol triggered

Special Products

(25%)

Sugar(55%)

Fruit(14%)

Starch**(36%)

Freiberger(32%)

BENEO(24%)

PortionPack(8%)

CropEnergies (6%)

* FY 2009/10** includes AGRANA bioethanol activities



Südzucker Group: Market Position and Strategic Objectives

Segment/Division Market Position Strategy / Main Drivers

Sugar

BENEOStarchFreiberger

FruitPreparations

Fruit JuiceConcentrates

CropEnergies

Take full benefit of global increase in demand for healthy food and upmarket products e.g. yoghurt drinks, wellness products, convenience food

Usage of integrated platform to raise synergiesin combined global sourcing and distribution

#1 in Europe

Taking advantage of transition period within the sugar industry via … … further enhancement of leading market

position in Europe; especially in deficit markets … internal efficiency gains

#1 worldwide

#1 in Europe

#1 worldwide in Isomalt and Oligofructose

#1 in Europe in frozen pizza

One of the leading players in Europe

Leverage strength of core products into productinnovations

External growth only via small add-ons feasible

Full exploitation of implemented capacity build-up



>450 mn €

Back on track after successful transformation

74%

26%

30%

70%

Sugar Special Products FruitCropEnergies

Pre-Reform2003/04

Transition Period(sugar market regime)

Post-Transition Period2010/11e

about5.8 bn €

4.6 bn €

Rev

enue

sO

p. P

rofit

479 mn €

5.9 bn € - 08/09

233 mn € - 07/08



Agenda



Sugar page 7



Fruit page 28



5. Appendix






Segment Sugar: Development 2009/10 (I)

(mn €) 2009/10 2008/09 2007/08

Revenues 3.154 3.320 3.464EBITDA 331 255 213EBITDA-Margin 10,5% 7,7% 6,1%Operating profit 217 137 60Operating Margin 6,9% 4,1% 1,7%Restructuring and special items -16 102 -20Income from operations (EBIT) 201 239 40

Investments 115 150 195Fixed Assets 107 124 139Financial Assets 9 26 53

Capital Employed 2.890 2.736 2.785RoCE 7,5% 5,0% 2,2%



Segment Sugar: Development 2009/10 (II)

Revenues (mn €)

Operating profit (mn €)

Cost savings through factory closures and other measures take effect on 12-month-basis

Export opportunity extends markets for non-quota sugar

Others 137217

2008/09 2009/10

2008/09 2009/10

3,320 3,154

Temporarily higher non-quota sugar exports were not enough to compensate for the lower quota sugar sales revenues.



o/w SZ: Mauritius ~0.4 mn t Raw sugar imports for raffination through SZ ~0.3 mn t

o/w SZ ~25%

EU sugar market* - supply and demand

EU Production EU Demand World MarketWorld Market

~13 mn t

~16-17 mn t

o/w SZ3.2 mn t

~2-3 mn t

„Quota sugar“

„Non-quota sugar“

Production** 157 mn t

3-4 mn t

up to 0.4 mn t

max. ~1.4 mn t

Demand** 163 mn t

*Simplified, excl. isoglucose**F.O. Licht estimate for 2009/10, August 2010

~3-4 mn t



EU quota sugar production - sugar marketing year* 2009/10

France

Germany

Belgium

Poland

Austria

Rumania

Moldova

20

72

40

25

25

100

39

35Hungary100

CzechRepublic

Slovakia

Bosnia-Hercegowina

Italy

Bulgaria

GreeceSpain

Portugal

Great Britain

* Sugar marketing year: Oct. – Sep.** Südzucker estimates

Südzucker Group(24 %)

Nordzucker(15 %)

All others(32 %)

British Sugar(12 %)

Tereos (10 %)

Pfeifer & Langen

(7 %)

Südzucker quota share per country (in %)Market share** EU quota sugar production

Non-EU productionSüdzucker distribution activity



Cooperation with Mauritius strengthens distribution power

Mauritius

400,000 tonnessugar

Exclusive distributor of ~ 400,000 tonnes p.a. sugar contingent from Mauritius into the EU until 2015

Imported sugar volume… …leverages European distribution platform

…supports core regions

…supports market position in European deficit markets

Distribution power of Südzucker Group builds on approximately 4.5 million tonnes sugar (consisting of production of quota sugar, industrial sugar and refined sugar as well as imported sugar from Mauritius)



Segment Sugar: Outlook 2010/11

Revenues Sales revenue reduction as of 1st of October 2009 takes effect

on full financial year basis for the first time

Higher volume of imported Mauritian sugar

Operating Profit

End of the restructuring phase in the EU sugar market and the elimination of temporary charges associated with sugar market reform (e.g. restructuring levy)

Non-quota sugar exports with one-time positive effect, especially in first quarter

Further and sustainable increase in operating profit

Overall leading to a slight reduction in revenues



Agenda



Sugar page 7



Fruit page 28



5. Appendix






(mn €) 2009/10 2008/09 2007/08

Revenues 1.396 1.427 1.283EBITDA 209 172 164EBITDA-Margin 14,9% 12,1% 12,8%Operating profit 138 108 107Operating Margin 9,8% 7,6% 8,3%Restructuring and special items 12 -4 -14Income from operations (EBIT) 150 104 93



Segment Special Products: Development 2009/10 (I)

*adjusted for CropEnergies 2007/08

*



Revenues (mn €)

Segment Special Products: Development 2009/10 (II)


108138

2008/09 2009/10

Starch (incl. AGRANA bioethanol) Bioethanol: significant earnings improvement

through omission of start-up losses in Pischelsdorf Raw marterial costs below prior year‘s level Sales revenue decline in H2

Others: Full year effect of BENEO price increases for cost

inflation compensation BENEO volume development impacted by

economic crisis

2008/09 2009/10

1,427 1,396

Lower sales revenues as a result of lower raw material prices - in division starch - as main driver for revenue decline. Despite difficult economic environment, all other divisions on prior year‘s level.



Segment Special Products: Development 2009/10 (III)

BENEO: World market leader with Premium food ingredients like Isomalt, Inulin, Oligofructose or rice starch

Freiberger: Private-label chilled and deep frozen convenience food (Pizza, Pasta, Baguettes)

Starch: Starch, starch niche products with food and non-food industry, isoglucose and AGRANA bioethanol activities

PortionPack: Various portioned products; wide range of products of food and non-food articles

Revenues (mn €)

* incorporates AGRANA bioethanol and starch activities

Revenue split 2009/10

Freiberger32%

BENEO (Functional Food)

24%

PortionPack8%

Starch*36%

1,396mn €

1,427

1,283

1,1611,079

1,396

2005/06 2006/07 2007/08 2008/09 2009/10

CAGR 2005/06-2009/10: ~7 %



Segment Special Products: Division BENEO

BENEO Group bundles Functional Food-operations

Worldwide unchanging growing demand for Functional Food ingredients in view of increasing competition

Increase in awareness for healthy food and growing per-capita income (emerging markets)

BENEO-Orafti (prebiotic fibres from chicory roots): Core products Inulin and Oligofructose; distribution of CropEnergies by-product BeneoPro W

BENEO-Palatinit (functional carbohydrates): Global leadership with Isomalt. Successful positioning of product innovations Palatinose™ and galenIQ™

BENEO-Remy (rice starches): e.g. rice starches, rice flours, rice bran, rice concentrates, …

Exploitation of growth potential of our core products

Development of new markets via innovations

Ingredientsfrom

naturalsource

Ingredientsfrom

naturalsource

processtechnologyprocess

technologyingredient processingingredient processing

regulatory support

regulatory support

nutritional science

nutritional science

PremiumproductsPremiumproducts

nutritional communication

nutritional communication

applicationtechnologyapplicationtechnology

world wide academic network

world wide academic network

specialty ingredient

sales

specialty ingredient

salesfood

marketing intelligence

food marketing intelligence

patent supportpatent support

marketing of health benefits

marketing of health benefits

consumerresearchconsumerresearch

food texturising

food texturising

passionateteam

passionateteam



Segment Special Products: Division Starch*

… for Food Industry (e.g. Baby Food)

…for Food Industry (e.g. Soft Drinks)

…for Food Industry (e.g. Confectionery Products)

… for Foodstuffs, Paper, Textiles, Pharmaceuticals

End Product UseVALUE

VOLUME

Commodities (Potato / Maize Starch)

Glucose Syrups

Isoglucose

Maltodextrins

Derivatives, Ethers and Esters … for Textile / Construction / Cosmetic Industry

Focus

Well established player as manufacturer of specialty starches for the paper, textile, cosmetics, pharmaceutical and construction industries

Principal focus on organic and GM-free starches for the food industry

Niche strategy allows for differenciation against competition and leverages in-house research and development infrastructure

Full utilization of bioethanol plant in Pischelsdorf (Austria)

Full availability of upgraded capacity in Hungary

* incorporates AGRANA bioethanol and starch activities



Segment Special Products: Division Freiberger

Freiberger produces and markets chilled and frozen pizzas as well as frozen pasta and baguettes

Solutions are specifically geared toward the strategies of its business partners: retail industry, caterers and food service operators

December 2008: Acquisition of further pizza production facility in Osterweddingen (Saxony-Anhalt)

Reconception of site in Westhoughton

Unrivalled European market leader for own label/private lable frozen pizzas

Berlin

Osterweddingen

Westhoughton

Muggensturm

Oberhofen

Production facility



Landgraaf (NL)

Barcelona

Prague

Production facility

Herentals (B)Oud-Beijerland (NL) Bodegraven (NL)

Telford

European market leader in individually packaged portions for the food and non-food sectors in Central Europe

In addition to conventional sugar packets, product range includes a wide spectrum of other food portion packs such as baked-goods, chocolate and sandwich spreads

Besides to the out-of-home market (retaurants, hotels, caterers) and food retailers, PortionPack Europe also services industry (contract packing) and the advertising/promotion sectors

December 2008: Expansion into Spain via acquisition of sugar portion pack manufacturer SAES, Barcelona

October 2009: Expansion into UK via acquisition of portion pack market leader Single Source Ltd., Telford

Segment Special Products: Division PortionPack Europe



Segment Special Products: Outlook 2010/11

Volume increase in all divisionsRevenues

Operating Profit

Slighly lower operating profit against prior year

Overall increase in revenues

Earnings development in all divisions less affected by difficult economic market environment



Agenda



Sugar page 7



Fruit page 28



5. Appendix






(mn €) 2009/10 2008/09 2007/08

Revenues 362 319 180EBITDA 33 29 31EBITDA-Margin 9,2% 9,0% 17,2%Operating profit 12 18 22Operating Margin 3,3% 5,7% 12,2%Restructuring and special items -2 -11 -5Income from operations (EBIT) 10 7 17


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

Segment CropEnergies: Development 2009/10 (I)

*since 2008/09 reported as separate segment

*



1218

Segment CropEnergies: Development 2009/10 (II)

Revenues (mn €)


Increase in volume / Change in contribution margin

Higher depreciations (ramp-up BioWanze)

2008/09 2009/10

2008/09 2009/10

319 362

Organic growth through extension of production in Zeitz and ramp-up of bioethanol plant in Wanze.



Segment CropEnergies: Development 2009/10 (III)

8.3

4.4

2.4

-3.2

Q1 Q2 Q3 Q4

Improvement of political framework EU: Renewable Energies Directive has

been in force since June 2009

Germany: Federal government wants to introduce E10 to the market

Volume increase of 25% to 601,000 (482,000) m3

Successful launch of Gluten and ProtiWanze®

Founding of the joint venture CT Biocarbonic GmbH Partner: Tyczka Energie GmbH

Beginning of the construction of Germany‘s largest plant for the liquefaction of biogenic CO2 in Zeitz

Source: EU Member States Reports, F.O. Licht, CropEnergies

Quarterly development – Operating profit (mn €)

EU demand/potential and production (bioethanol)

3.92.8

1.8

4.53.5

2.2

19.52.3%1.7%

1.0%

10%

2007 2008 2009e 2020e

Production (mn ) Demand/Potential (mn ) Petrol quotam3 m3



Segment CropEnergies: Outlook 2010/11

Increase in utilization at BioWanze leads to about 10% higher production level

Despite volatile pricing environment …

Revenues

Operating Profit

Despite maintenance shutdown phase in Q1, production facilities in Zeitz and Wanze …

…with positive earnings development on full year basis through higher utilization of capacities for bioethanol and by-product production

Operating profit to exceed 30 (12) million €

… further increase in revenues



Agenda



Sugar page 7



Fruit page 28



5. Appendix






Segment Fruit: Development 2009/10 (I)

(mn €) 2009/10 2008/09 2007/08

Revenues 806 805 853EBITDA 72 33 81EBITDA-Margin 8,9% 4,0% 9,5%Operating profit 36 -5 44Operating Margin 4,4% neg. 5,1%Restructuring and special items -3 0 -5Income from operations (EBIT) 32 -5 39


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



Segment Fruit: Development 2009/10 (II)

Revenues (mn €)


Fruit preparations (revenue share 80%) Slightly higher volumes despite economic crisis

and stronger competition

Cost inflation not fully forwarded into market

Fruit juice concentrates (revenue share 20%) Omission of prior year‘s inventory write-down in

apple juice concentrates

Significant volume increase

Omission of apple juice concentrate write-down

-5

36

2008/09 2009/10Others

2008/09 2009/10

805 806

Substantially lower sales revenues for apple juice concentrate were offset by significantly higher volumes. Volumes in fruit preparations were slightly higher than last year.



Segment Fruit: Outlook 2010/11

Revenues Impulse via innovation and development of new markets in both

divisions

Market recovery facilitates volume increase in division fruit preparations

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

Operating Profit

Further improvement in operating profit mainly supported by volume increase in fruit preparation as well as in fruit juice contentrate divisions

Revenues above previous year



Agenda



Sugar page 7



Fruit page 28



5. Appendix






Group income statement *

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 1.535 1.524 0,7% 3.068 2.935 4,5%EBITDA 181 132 36,4% 376 261 44,1%

EBITDA margin 11,8% 8,7% 12,3% 8,9%Depreciation -48 -42 14,4% -95 -82 15,1%Operating profit 133 91 46,5% 282 179 57,4%

Operating margin 8,7% 6,0% 9,2% 6,1%Restructuring costs and special items -19 6 - -19 5 -Income from operations 114 97 17,7% 262 184 42,6%Net earnings for the period attributable to Südzucker shareholders 50 55 -9,0% 123 103 19,4%Earnings per share (€) (undiluted) 0,27 0,29 -8,9% 0,65 0,54 19,4%Cash flow 135 128 5,1% 270 243 10,9%Investments in fixed assets 64 65 -0,5% 111 101 9,6%Net financial debt (as of reporting date) 776 962 -19,3%Average number of employees 18.062 17.598 2,6%

2nd quarter 1st half year

* This presentation includes percentage and number rounding



Financial Highlights – 1st half year 2010/11 *

Group revenues up 5 % to 3,068 (2,935) million €

Operating profit increased 57 % to 282 (179) million €

Cash flow up 11 % to 270 (243) million €

Earnings per share rises 19 % to 0.65 (0.54) €

Net financial debt decreased 19 %, i.e. 186 million €to 776 (962) million €

* H1 group revenues and group operating profit reported on 20 September 2010



Segment Sugar: Development 1st half year 2010/11

Revenues: Slight increase in revenues reflects higher quota sales volume and non-recurring non-quota export. In Feburary 2010 the EU has significantly increased the non-quota sugar export contingent. Südzucker has taken benefit of this increase - especially in Q1 2010/11.

Operating profit: Increase was driven by lower costs and good volume development for quota sugar, compensating for the lower sales revenues since 1st of October 2009. Furthermore the increase in operating profit was strongly supported by the Q1 non-quota sugar exports.

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 828 887 -6,7% 1.672 1.655 1,0%EBITDA 85 63 34,7% 191 129 47,8%


Operating margin 8,7% 5,8% 9,9% 6,4%




Segment Special Products: Development 1st half year 2010/11

Revenues: Main driver for the increase in revenues were significantly higher volumes, especially in divisions starch and BENEO.

Operating profit: The continued good performance in operating profit has exceeded our expectations in H1. It was mainly driven by the starch division. A strong volume development as well as lower energy costs were able to offset the significantly lower sales revenues. All other divisions have shown a positive development.

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 385 339 13,8% 762 688 10,7%EBITDA 56 49 13,8% 114 97 17,4%






Segment CropEnergies: Development 1st half year 2010/11 *

Revenues: Following the extensive inspection and optimization works in factories Zeitz and Wanze in Q1, Wanze has commenced normal operations leading to a significantly higher volume in Q2.

Operating profit: In light of the higher volume in ethanol and respective by-products, operating profit has been strongly lifted. In H1 CropEnergies has taken benefit from low raw material costs. The meanwhile increase in wheat prices has not yet materially impacted H1 numbers.

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 111 93 19,8% 200 180 10,9%EBITDA 23 7 > 100,0% 32 8 > 100,0%

EBITDA margin 20,3% 7,3% 16,2% 4,2%Depreciation -8 -4 72,7% -15 -8 80,8%Operating profit 15 2 > 100,0% 17 -1 -

Operating margin 13,5% 2,6% 8,7% -


* CropEnergies has reported H1 revenues and operating profit on 20 September 2010



Segment Fruit: Development 1st half year 2010/11

Revenues: Despite lower sales revenues, overall revenues for the segment have been increased through higher volumes in fruit preparations as well as in fruit juice concentrates.

Operating profit: The positive earnings trend in Q1 has been resumed in Q2. The positive volume development offsets the lower sales revenues.

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 211 206 2,3% 435 411 5,7%EBITDA 18 14 27,3% 39 28 42,4%

EBITDA margin 8,4% 6,8% 9,0% 6,7%Depreciation -9 -8 5,5% -18 -17 3,1%Operating profit 9 6 60,8% 22 11 > 100,0%





Income statement (I)

Restructuring costs and special items: The result reflects mainly expenses in segment sugar which are attributable to a sales tax

supplementary payment for the year‘s 1994 to 1997 in Italy. Income from associated companies:

The result reflects mainly the company‘s share of earnings from our joint ventures sales organizations.

Financial result: The deterioration is mainly attributable to two non-recurring effects; positive currency

effects of the prior year and the discounting of the EU restructuring assistance receivable.

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Revenues 1.535 1.524 0,7% 3.068 2.935 4,5%Operating profit 133 91 46,5% 282 179 57,4%Restructuring costs and special items -19 6 - -19 5 -Income from operations 114 97 17,7% 262 184 42,6%Income from associated companies 0 1 -81,1% 1 1 7,0%Financial result -19 -1 > 100,0% -46 -8 > 100,0%Earnings before income taxes 95 96 -1,5% 218 177 23,1%




Income statement (II)

Taxes on income: The tax rate came in at 24 %.

Minority interest: The co-owners of the AGRANA Group account for most of the other minority interests‘

share of the net earnings. Earnings per share:

EPS increased by 19 % to 0.65 €.

(mn €) 2010/11 2009/10 ∆ 2010/11 2009/10 ∆Earnings before income taxes 95 96 -1,5% 218 177 23,1%Taxes on income -23 -23 -0,1% -53 -38 37,8%Net earnings for the year 72 74 -2,0% 165 139 19,0%of which attributable to Südzucker shareholders 50 55 -9,0% 123 103 19,4%of which attributable to hybrid capital 7 7 0,0% 13 13 0,0%of which attributable to minority interest 16 12 27,9% 29 23 28,5%

Earnings per share (€) 0,27 0,29 -8,9% 0,65 0,54 19,4%




Cash flow statement

Cash flow: The improvement follows the increase in net profit. The decline in working capital was substantially lower than last year, because in June 2009, the company received the EU restructuring payment of € 446 million.

Investments: Continued disciplined capex program with overall investments close to maintenance level.

(mn €) 2010/11 2009/10 ∆Cash flow 270 243 10,9%Decrease (+) in working capital 267 584 -54,3%Investments in fixed assets

Sugar segment 64 51 24,4%Special products segment 28 22 24,7%CropEnergies segment 11 20 -43,2%Fruit segment 8 8 5,4%

Total investments in fixed assets 111 101 9,6%Investments in financial assets 6 4 38,4%

Dividends paid -142 -133 7,0%

1st half year



Balance sheet

Reduction in current assets, non-current and current liabilities leading to reduction in net financial debt:

The reduction in current assets is mainly driven by lower cash requirements following the termination of payments to the EU restructuring fund.

The reduction in current liabilities is driven by the redemption of the 300 million € bond in June 2010. Due to redemption of long term bank loans non-current liabilities have been reduced, too.

(mn €) 31.08.2010 31.08.2009 ∆AssetsNon-current assets 4.089 4.059 0,7%Current assets 2.607 2.872 -9,2%Total assets 6.696 6.931 -3,4%Liabilities and shareholders' equityShareholders' equity 3.578 3.334 7,3%Non-current liabilities 1.859 2.036 -8,7%Current liabilities 1.259 1.561 -19,3%Total liabilities and shareholders' equity 6.696 6.931 -3,4%Net financial debt 776 962 -19,3%Equity ratio 53% 48%Net financial debt in percent of equity (gearing) 22% 29%



Agenda



Sugar page 7



Fruit page 28



5. Appendix





43

-811

-1.191

-971

-1.103

-1.508

-1.920

-1.592

-1.618-1.633

-1.858

-962

-893

-1.065-1.065

-776

-2.300

-2.100

-1.900

-1.700

-1.500

-1.300

-1.100

-900

-700

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

mn

€

NFD End of PeriodNFD Year-ø (End of Period)

FY 2007/08

~ -900--1,000

FY 2008/09 FY 2009/10 FY 2010/11e

Südzucker Group, page

Normalisation of NFD trend continues in 2010/11

Three years with high payments to the EU restructuring fund led to temporary distortion of normal seasonal NFD pattern

In 2009/10 the EU restructuring assistance (received by end of June 2009) has essentially contributed to a reduction in NFD and a seasonal normalisation

Basis for additional reduction in NFD going forward

* Payments to restructuring fund (overall -1.5 bn € )** Südzucker received EU restructuring assistance of 446 mn € in June 2009

-586 mn € * -551 mn € * -363 mn € *+446 mn € **


44

Operating Profit2009/10 2010/11e

Group: Outlook 2010/11

Sugar

Revenues2009/10 2010/11e

Special Products

CropEnergies

Fruit

Group 1) 5.7 bn € about 5.8 bn € 403 mn € > 450 mn €

Investments 2)

Net Financial Debt 1) Revised upwards following preliminary announcement on 20 September 2010

2) excl. investments in financial assets

~ 250 mn €

~ 900 – 1,000 mn €

3.2 bn €

1.4 bn €

362 mn €

806 mn €

217 mn €

138 mn €

12 mn €

36 mn €

> 30 mn €




Agenda



Sugar page 7



Fruit page 28



5. Appendix






Financial Highlights 2009/10 (I)

Group revenues decline by 3% to 5.7 (5.9) bn €

Group operating profit increase by 56% to 403 (258) mn €

Segment sugar shows further significant earnings improvement to 217 (137) mn € in light of cost reductions and reduced charges from the restructuring phase of the EU sugar market

Segment special products generates substantially higher profit due to improvements at the BENEO and starch divisions: 138 (108) mn €

Segment CropEnergies profits lower due to ramp-up of bioethanol plant operations in Wanze/Belgium: 12 (18) mn €

Segment fruit profits explicitly recovered to 36 (-5) mn € due to omission of prior year‘s inventory write-down

Increase of group net profit to 276 (183) mn €, EPS 1.06 (0.86) €

Cashflow 553 (504) mn € on high level

Increase in dividend to 0.45 (0.40) € per share

Massive reduction in net financial debt by 35% to 1,065 (1,633) mn €

Successful placement of promissory note in April 2009 (150 mn €; coupon 5.90%; maturity 2014) and convertible bond in June 2009 (283 mn €, coupon 2.5%; maturity 2016)



Financial Highlights 2009/10 (II)

2008/09 2009/10

Revenues 5.9 bn € 5.7 bn €

Operating Profit 258 mn € 403 mn €

0.40 € 0.45 €

Net profit

Earnings per share

183 mn €

0.86 €

276 mn €

1.06 €

Dividend per share



Financial Highlights 2009/10 (III)

Sugar

Fruit

Special Products

CropEnergies

137 mn €

108 mn €

18 mn €

-5 mn €

217 mn €

138 mn €

12 mn €

36 mn €Ope

ratin

g Pr

ofit

2008/09 2009/10

Group 258 mn € 403 mn €



Successful placement of Promissory Note (150 mn €) Convertible bond (283 mn €),

Coupon 2,5%; Maturity 2016)

Financial Highlights 2009/10 (IV)

2008/09 2009/10

Investments* 384 mn € 216 mn €

Cashflow 504 mn € 553 mn €

Net Financial Debt

Liquidity

1,633 mn €

~1.7 bn €

1,065 mn €

~2.5 bn €

Financing

* excl. investments in financial assets



(mn €) 2009/10 2008/09 2007/08

Revenues 5.718 5.871 5.780EBITDA 645 489 489EBITDA-Margin 11,3% 8,3% 8,5%Operating profit 403 258 233Operating Margin 7,0% 4,4% 4,0%Restructuring and special items -10 87 -44Income from operations (EBIT) 392 345 189

Cashflow 553 504 498Net Financial Debt 1.065 1.633 1.508Equity Ratio 47,3% 41,9% 41,7%


Earnings per share (€) 1,06 0,86 0,10Cashflow per share (€) 2,92 2,66 2,63Dividend per share (€) 0,45 0,40 0,40

Group – Key Figures



Revenue development(mn €)

2008/09 2009/10

5,871

5,718

5400

5450

5500

5550

5600

5650

5700

5750

5800

5850

5900

-166

-301 43Sugar

Special Products

Fruit Crop Energies



Operating profit development(mn €)

2008/09 2009/10

403

258

100

150

200

250

300

350

400

450

81

3042

-6

Sugar

Special Products

Fruit

Crop Energies



Result from restructuring and special items

The restructuring result is essentially influenced by charges in the sugar segment which include expenses for restructuring programs and revaluation of default risks. These were largely offset by income from insurance settlements the special products segment received for claims associated with a fire damage at the Freiberger pizza plant in Skelmersdale, Great Britain.

(mn €) 2009/10 2008/09 ∆

Operating profit 403 258 145

Restructuring & special items -10 87 -97

thereof Sugar -16 102 -119

thereof Special Products 12 -4 16

thereof CropEnergies -2 -11 9

thereof Fruit -4 0 -4

Income from operations (EBIT) 392 345 47



Earnings before income taxes

Income from associated companies mainly includes the company‘s share of earnings from joint-venture sales organizations. The prior year‘s numbers had still included a large sum resulting from the Eastern Sugar B.V. settlement.

The financial result improved by 89 mn € compared to the same period a year earlier. Among other things, the improvement is attributable to lower average debt together with the strengthening of the prior year‘s accruals for currency devaluations for euro-denominated group financing. Discounted receivables from the EU restructuring assistance paid to Südzucker in June 2009 had an ultimately positive impact on interest income.

(mn €) 2009/10 2008/09

Income from operations (EBIT) 392 345 47Income from associated companies 2 22 -20Financial expense -46 -135 89Earnings before income taxes 348 232 116

∆



Earnings per share

Group tax rate again came in at 21%.

Other minority interests consist mainly of minority shareholders of the AGRANA Group, which contributed to the annual results of the AGRANA Group.

Earnings per share came in at 1.06 €. The prior year‘s earnings per share included a one-time impact of 0.48 € per share from the EU restructuring assistance income associated with the second wave quota returns minus the cost of the factory closures.

Dividend increase to 0.45 (0.40) € per share.

(mn €) 2009/10 2008/09

Earnings before income taxes 348 232 116Taxes on income -72 -49 -23Consolidated net earnings 276 183 93

thereof Südzucker AG shareholders 200 162 38thereof hybrid capital 26 26 0thereof other minority interest 50 -5 55

Earnings per share (€) 1,06 0,86 0,20

∆



Investments and depreciation

Investments in segment sugar on, special products and fruit significantly below depreciation level. Segment CropEnergies with significant reduction. Ramp-up phase of bioethanol plant in Wanze marks end of investment phase.

Group: Projected reduction in fixed asset investments below 250 mn € more than achieved. Total investments reduced by 45%.

(mn €) 2009/10 2008/09 2009/10

Fixed Assets 216 384 -168 Depreciation 243Sugar 107 124 -17 Sugar 114Special Products 50 60 -10 Special Products 71CropEnergies 34 170 -136 CropEnergies 21Fruit 26 31 -4 Fruit 37

Financial Assets 17 40 -23Sugar 9 26 -18Special Products 8 2 6CropEnergies 0 1 -1Fruit 0 12 -12

Südzucker Group 233 424 -192

∆



1.508

1.065

1.633Cash Flow

Working Capital Investments

Net Financial Debt reduction due to …(mn €)

274 -233

54

Dividends-133

Disposal of assets

Maintenance capex in established capacities

Cash inflow EU restructuring assistance 446 mn € (June 2009)

Payment to EU restructuring fund -363 (-551) mn €

553

NFD 29.02.2008

NFD 28.02.2009

NFD 28.02.2010

52

Cap. increase through

convertible bond

2009/2016

1,508 1,633

1,065



Balance sheet ratios

(mn €) 28.02.2010 28.02.2009 29.02.2008

Total assets 7.398 7.709 7.917Equity 3.500 3.229 3.300Equity ratio 47,3% 41,9% 41,7%

Net Financial Debt (NFD) 1.065 1.633 1.508Gearing (NFD/Equity) 30,4% 50,6% 45,7%Cashflow 553 504 498NFD/Cashflow 1,9x 3,2x 3,0x

Goodwill 1.132 1.124 1.104Property, plant, equipment 2.609 2.626 2.596Working Capital 1.512 1.323 1.431




Liquidity profile

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

(mn €) 2008/09 2009/10Net financial debt -1.633 -1.065Cash & cash equivalents / securities 413 695

Gross financial debt -2.046 -1.760

Long-term financial debt -1.154 -1.120

Short-term financial debt -892 -640

Bank credit lines: 1.421 1.234undrawn 511 558

Syndicated loan facility (July 2012) 600 600undrawn 330 600

Commercial paper program 600 600undrawn 486 600

Total liquidity reserves 1.740 2.452



2.3%8.2%10.0%

2009/102008/092007/08

4,923 mn €

7.5%

5,374 mn €

403 mn €258 mn €

5.2%

5,005 mn €

233 mn €

4.7%

CropEnergies

Return on Capital Employed (RoCE)

Fruit

Capital Employed

Operating Profit

Segm

ents

Gro

up

RoCE

Special Prod.

Sugar 2.2% 5.0% 7.5%

9.0% 8.4% 10.5%

5.6% neg. 5.5%



Performance versus Outlook 2009/10 targets achieved

Revenues

Net Financial Debt

Operating Profit

Investments*

prior year‘s level

~400 mn €

~250 mn €

~1.1 – 1.2 bn €

Outlook 2009/10

deutliche Ergebniserholung

Reported 2009/10

5.7 bn €

403 mn €

216 mn €

1,065 mn €

* excl. investments in financial assets



Agenda



Sugar page 7



Fruit page 28



5. Appendix





63

Pre-Reform Post-Transition PeriodActual Actual Actual Actual Actual Actual Actual Outlook

(mn €) 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11e

Revenues 4.575 4.827 5.347 5.765 5.780 5.871 5.718 ~ 5.800EBITDA 677 723 672 682 489 489 645

EBITDA-Margin 14,8% 15,0% 12,6% 11,8% 8,5% 8,3% 11,3%Operating profit 479 523 450 419 233 258 403 > 450

Operating Margin 10,5% 10,8% 8,4% 7,3% 4,0% 4,4% 7,0%Income from operations (EBIT) 446 491 397 -129 189 345 392Earnings before income taxes (EBT) 394 457 328 -227 120 232 348Net earnings 307 358 304 -246 100 183 276

thereof to SZ AG shareholders 255 297 242 -326 19 162 200

Earnings per share (€) 1,48 1,67 1,36 -1,72 0,10 0,86 1,06Dividend per share (€) 0,50 0,55 0,55 0,55 0,40 0,40 0,45

Cashflow 522 553 527 554 498 504 553Investments total 488 1.090 642 599 550 424 233 ~ 250

Capital Employed 4.091 4.646 5.221 4.767 5.005 4.923 5.374RoCE 11,7% 11,3% 8,6% 8,8% 4,7% 5,2% 7,5%

Total Assets 6.038 7.195 7.926 7.932 7.917 7.709 7.398Equity 2.386 2.738 3.733 3.362 3.300 3.229 3.500Equity Ratio 39,5% 38,1% 47,1% 42,4% 41,7% 41,9% 47,3%Net Financial Debt (NFD) 1.008 1.672 1.177 811 1.508 1.633 1.065 ~ 900 - 1.000Gearing (NFD/Equity) 42,2% 61,1% 31,5% 24,1% 45,7% 50,6% 30,4%

Transition Period


Long-term development

*

**

* Extraordinary impact from Goodwill impairment loss** Does not include Cash inflow of 446 mn € from EU effective June 2009*** Capex (excluding investments in financial assets)

***



2009/10 2008/09 2009/10(mn €) RoCE RoCE Op. Profit Cap. Employed

Südzucker Group 7,5% 5,2% 403 5.374Sugar 7,5% 5,0% 217 2.890Special Products 10,5% 8,4% 138 1.309CropEnergies 2,3% 8,2% 12 525Fruit 5,5% neg. 36 650

Return on Capital Employed (RoCE)

Sugar: Significant increase in light of strong earnings improvement, despite slight increase in capital employed.

Special Products: Increase with stable capital employed and significant profit uplift.

CropEnergies: Ramp-up of bioethanol plant in Wanze increases capital employed significanlty. Additional operating burden within ramp-up phase.

Fruit: RoCE-development reflects mainly profit recovery after prior year‘s inventory write-down in apple juice concentrates.

Group: Earnings increase in segments sugar, special products and fruit compensate for temporary weak development in segment CropEnergies

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

*



Liquidity profile end of period

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

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

Net financial debt -962 -893 -1.065 -1.065 -776

Cash & cash equivalents / securities 872 900 695 699 637

Gross financial debt -1.834 -1.793 -1.760 -1.764 -1.413

Long-term financial debt -1.245 -1.186 -1.120 -1.113 -1.083

Short-term financial debt -589 -607 -640 -651 -330

Bank credit lines: 1.322 1.276 1.234 1.177 1.133

undrawn 581 569 558 515 532Syndicated loan facility (July 2012) 600 600 600 600 600

undrawn 600 600 600 600 600Commercial paper program 600 600 600 600 600

undrawn 600 600 600 600 600

Bank credit lines (undrawn) 581 569 558 515 532+ Cash & cash equivalents / securities 872 900 695 699 637+ Syndicated loan (undrawn) 600 600 600 600 600+ Commercial paper (undrawn) 600 600 600 600 600= Total liquidity reserves 2.653 2.669 2.452 2.414 2.368



Financing maturity profile further enhanced

6.25% Bond 2000/2010, 300 mn €

5.75% Bond 2002/2012, 500 mn €

Syndicated loan, 600 mn €, no covenantsmargin max. 35 bp, short-term borrowing facility 1 week < 1 year volume 2010/11 Q2: 0 mn €

5.25% Hybrid Bond 2005/2015, 700 mn € Perpetual; first issuer call right June 2015

Commercial Paper-Program, 600 mn € Drawn lines 2010/11 Q2: 0 mn €

June 2010

February 2012

July 2012

June 2015

Perpetual

5.90% German promissory note, 150 mn €April 2014(Placement April 2009)

June 2016(Placement June 2009)

2.50% Convertible Bond 2009/2016, 283 mn € Issuer Call after 4 years; Investor Put after 5 years



Group balance sheet(mn €)

Other current assets

Inventories

Non-current assets

Assets28.02.2009 28.02.2010

7,709

1,641(21.3 %)

1,997(25.9 %)

4,071(52.8 %)

7,398

1,536(20.7 %)

1,751(23.7 %)

4,111(55.6 %)

Current liabilities

Non-current liabilities

Equity

Total

Liabilities28.02.2009 28.02.2010

7,709

2,539(32.9 %)

1,940(25.2 %)

3,229(41.9 %)

7,398

1,976(26.7 %)

1,922(26.0 %)

3,500(47.3 %)

Total



Group balance sheet

(mn €) 28.02.2010 28.02.2009

Intangible assets 1.189 16,1% 1.181 15,3%Property, plant, equipement 2.552 34,5% 2.569 33,3%Shares in associated companies 19 0,3% 76 1,0%Other investments and loans 29 0,4% 23 0,3%Securities 146 2,0% 105 1,4%Receivables and other assets 13 0,2% 8 0,1%Deferred tax assets 164 2,2% 108 1,4%Non-current assets 4.111 55,6% 4.071 52,8%

Inventories 1.751 23,7% 1.997 25,9%Trade receivables and other assets 962 13,0% 1.301 16,9%Current tax receivables 25 0,3% 33 0,4%Securities 191 2,6% 144 1,9%Cash and cash equivalents 357 4,8% 164 2,1%Current assets 3.287 44,4% 3.638 47,2%

Total assets 7.398 100,0% 7.709 100,0%

(mn €) 28.02.2010 28.02.2009

Equity attributable to shareholders of SZ AG 2.271 30,7% 2.047 26,5%Hybrid capital 684 9,2% 684 8,9%Other minority interest 546 7,4% 499 6,5%Shareholder's equity 3.500 47,3% 3.229 41,9%Provisions for pensions and similar obligations 409 5,5% 405 5,2%Other provisions 188 2,5% 201 2,6%Non-current financial liabilities 1.119 15,1% 1.154 15,0%Other liabilities 15 0,2% 15 0,2%Deferred tax liabilities 191 2,6% 165 2,1%Non-current liabilities 1.922 26,0% 1.940 25,2%Other provisions 104 1,4% 117 1,5%Current financial liabilities 641 8,7% 891 11,6%Trade and other payables 1.193 16,1% 1.498 19,4%Current tax liabilities 37 0,5% 33 0,4%Current liabilities 1.975 26,7% 2.539 32,9%Total liabilities and shareholders' equity 7.398 100,0% 7.709 100,0%



Agenda



Sugar page 7



Fruit page 28



5. Appendix






Revenue by region 2009/10

Germany (29.9 %)

EU 15(48.9 %)

Rest of world(8.3 %)

5,718 mn €EU 12(12.9 %)



Segment Sugar: Campaign SMY 2009/10

Beet growers: 46,000 (47,600)

Beet acreage: 401,000 (370,000) ha

Sugar factories (incl. refineries): 32 (33)

Beet processing: 28.4 (25.0) mn tons

Sugar production: 4.8 (4.2) mn tons thereof from beets: 4.4 (3.9) mn tons

thereof raw sugar raffination: 0.4 (0.3) Mio. t



Südzucker well positioned in „Beet Belt“

Poland

Slovakia

Hungary

Austria

Germany

FranceRomania

Moldova

BelgiumCzech Republic



Segment Sugar: Factory structure and cost savings

16

47

76

137 142

02468101214161820222426283032343638404244464850525456586062646668707274767880828486889092949698100102104106108110112114116118120122124126128130132134136138140142144146148150

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11e

** beet sugar factories and refineries

* including reductions in the context of factory closures

Factory structure Cost savings (in mn €)

8,1008,2188,59810,043

10,88511,67812,001

13,812

46 45 42 4133 32 32

52

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11e-100

-80

-60

-40

-20

0

20

40

Employees * Factories **



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

150

200

250

300

350

400

450

500

550

600

12.0

2.20

09

12.0

3.20

09

12.0

4.20

09

12.0

5.20

09

12.0

6.20

09

12.0

7.20

09

12.0

8.20

09

12.0

9.20

09

12.1

0.20

09

12.1

1.20

09

12.1

2.20

09

12.0

1.20

10

12.0

2.20

10

12.0

3.20

10

12.0

4.20

10

12.0

5.20

10

12.0

6.20

10

12.0

7.20

10

12.0

8.20

10

12.0

9.20

10

12.1

0.20

10

Quo

tatio

n fo

r sug

ar in

€/ t

on

White sugar contract No. 5 LIFFE London (Future contract switching upon expiry)

Raw sugar contract No. 11 NYMEX New York (Future contract switching upon expiry)



Bioethanol: Further EU support fuels potential

Renewable Energies Directive Mandatory blending rate for

renewable energies of 10% in 2020

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

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

introduction of E10

Decarbonisation of the transport sector Reduction of greenhouse gas emissions

caused by fossil fuels by 10% by 2020

Average greenhouse gas emissions of new cars of 95 g CO2/km by 2020

Consequence: Market for sustainably produced bioethanol in EU is growing

0

500

1,000

1,500

2,000

FRA GER ESP UK POL SWE HUN AUT ITA Others

,000

m3

2008 2009

Source: BAFA

Source: F.O. Licht

Development EU bioethanol production

Fuel ethanol volume in Germany

0

500

1,000

1,500

2007 2008 2009

,000

m3

Bioethanol in ETBE Direct blending Bioethanol in E85

79.7% 58.7%22.4%

76.8%40.2%

19.2%1.1%

1.1%

0.8%



Bioethanol: The alternative fuel

Convenient handling, comparable to fossil fuel Liquid; using existing tanks and station infrastructure Easy filling under atmospheric pressure with existing security systems

Established vehicle technology Up to 10% (low blends) no modifications required High blends (E85): FFV modifications cheap with cost of up to 400 €/car

Non toxic, non hazardous, environmental friendly, sustainable CO2 Balance

CO2 neutral photosynthesis: energy plants absorb CO2 (emmetting oxygen);when burned, oxygen is absorbed (emmetting CO2)

Each litre of Bioethanol saves 0.8 – 2.2 kg CO2 vs. Petrol (Source: LAB)

Energy Balance Net energy balance 3.2 : 1 (efficiency CEAG factory Zeitz) (Source: CropEnergies)

Net energy balance 2.1 : 1 (well to wheel) Net energy balance of petrol 0.8 : 1 (Source: Worldwatch)



Price development wheat and maize (Euronext, LIFFE)

110

120

130

140

150

160

170

180

190

200

210

220

230

240

12.1

1.20

09

12.1

2.20

09

12.0

1.20

10

12.0

2.20

10

12.0

3.20

10

12.0

4.20

10

12.0

5.20

10

12.0

6.20

10

12.0

7.20

10

12.0

8.20

10

12.0

9.20

10

12.1

0.20

10

€/ t

on

Wheat price (Future contract March 2011) Price for maize (Future contract March 2011)



Segment Fruit – with leading positions in both divisions

Overview Division Fruit preparations: World market leader

Customers: dairy, baking and ice cream industry

Division Fruit juice concentrates: Leading European producer (market leader in apple juice concentrates)

Core competences Upgrading of agricultural raw material into

premium preliminary products for food industry

Global sourcing and distribution of fruit ingredients

Positioning & Strategy Shared customer base with segments/divisions sugar,

BENEO and starch

Accelerated organic growth Emphasis on expansion into attractive growth regions

(e.g. Brazil, Russia, China) Growth drivers:

Especially yogurt drinks rank among the fastest growing food products globally

Increase in awareness for healthy food and growing per-capita income (emerging markets)

Synergies / Production cost optimisation

780

AGRANA J&F Holding GmbH, Vienna

AGRANA Juice GmbH, Gleisdorf

AGRANA Fruit S.A. Paris

Fruit preparations

80% of segment revenues ~37% world market share 25 facilities on the globe

Fruit juice concentrates

20% of segment revenues~15% European market share 10 facilities worldwide

Revenues (in mn €)

541

780 853 805 806

2005/06 2006/07 2007/08 2008/09 2009/10

12 months 915*

* Financial year adjustment



Segment Fruit: Production facilities



ContactHead of Investor RelationsNikolai Baltruschat Tel.: +49 (621) 421 - [email protected]

DisclaimerThis presentation contains forward looking statements based on assumptions and estimates made by the executive board of Südzucker AG. Although the executive board may be convinced that these assumptions and estimates are reasonable the future actual developments and future actual results may vary considerably from the assumptions and estimates due to many external andinternal factors. For example, matters to be mentioned in this connection include negotiations relating to the world trade agreement (WTA), changes to the overall economic situation, changes to EU sugar policies, consumer behavior and state food and energy policies. Südzucker AG assumes no responsibility and accepts no liability for future developments and future actual results achieved being the same as the assumptions and estimates included in this presentation.

Financial calenderQ3 – 3rd quarter report 2010/11 January 13, 2011Press and analysts‘ conference for 2010/11 May 18, 2011Q1 – 1st quarter report 2011/12 July 14, 2011Annual general meeting for fiscal 2010/11 July 21, 2011Q2 – 2nd quarter report 2011/12 October 13, 2011Q3 – 3rd quarter report 2011/12 January 12, 2012

Documents

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