2016-11-21-investor update fixed income-en - südzucker · investor update fixed income, november...

Südzucker Group, page 1

Südzucker GroupThomas Kölbl (CFO)

Investor Update Fixed Income, November 2016


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 2015/16 annual report on pages 94 to 109 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. IFRS 11 application as of financial year 2013/14.

Written and visual value statements are standardized as follows:

Disclaimer

± 1%stable

/± 4-10%moderate

/>/< 10%significant

/± 1-4%slight



Agenda

1. Overview and strategic objectives page 4

2. Brief segmental overview page 9

3. Financial Highlights H1 2016/17 page 20

4. Financing and Liquidity page 23



Südzucker Group at a glance

Special Products

(28%)

Sugar(45%)

Fruit(17%)

CropEnergies (10%)

Group Revenues 6.4 bn € Global operating German food group with long-standing corporate history: 1837:Foundation of first sugar

company 1926:Foundation of

Süddeutsche Zucker-AG Revenues: 6,387 mn € Operating result: 241mn € Production facilities: ~100 Employees: ~16.500 Beneficiary of mega trends within

food, animal feed and energy area Stock exchange listing in Germany MDAX-member Trading volume: ~ 1.0 mn

shares/day* rounded

*



Leading Market Positions and clear Strategic Objectives

Segment/Division Market Position Strategy / Main Drivers

Sugar

BENEOFreibergerStarchPortionPack

FruitPreparations

Fruit JuiceConcentrates

CropEnergies

Take full benefit of global increase in demand for healthy food and upmarket products through new facilities (e.g. USA)

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

Platform with Austria Juice supports growth and profitability

#1 in Europe Further enhancement of leading market

position in Europe; especially in deficit markets Expedite internationalization; partnership with ED&F Man

#1 worldwide

#1 in Europe

#1 worldwide in Isomaltand Oligofructose

#1 in Europe in frozenPizza (private label)

#1 in Europe in portionpacks

One of the leading bioethanol players in Europe

Leverage strength of core products intoproduct innovations

Further internal and external growth

Focus on specialty starches Market share expansion through new facilities

Development of product portfolio and regions

Full exploitation of implemented capacity build-up Consolidation of the leading position

Source: Südzucker



,0

4,000

8,000

12,000USD

per capita income

Source: ERS International Macroeconomic Data Set

emerging markets

worldwide

Portfolio benefits from long-term global 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

population growth worldwide

sugar consumption worldwide

0

20

40

60

80

100

120

0

20

40

60

80

100

USD / barrelmn barrel / day

Source: BP, EIA

oil consumption

crude oil price ,200

,400

,600

,800

1,000mn t

Source: USDA

global animal feed production



0

200

400

600

800

1.000

Sugar

Advantage of a diversified portfolio in changing marketsOperating Result in mn €

Special Products CropEnergies Fruit



Agenda







Segment Sugar

(mn €) 2015/16 2014/15 ΔRevenues 2.855 3.228 -373 -11,6%EBITDA 48 133 -85 63,0%EBITDA-Margin 1,7% 4,1%Operating Result -79 7 -86Operating Margin -2,7% 0,2%Restructuring and special items 4 -7 11Result from companies consolidated at equity 32 -5 37Result from operations -43 -5 -38

Investments 181 186 -5 -2,9%Fixed Assets 181 186 -5 -2,9%Financial Assets / Acquisitions 0 0 0

Capital Employed 3.041 3.199 -158 -4,9%RoCE -2,6% 0,2%



Segment Sugar: Europe

European market leader

Pan-European sales and logisticstrategy

Sustainable production in highest beet-yield areas in Europe

Cost savings throughout entirevalue chain

Keeping and strengtheningcompetitiveness

Exploiting growth opportunitiesoutside Europe Exports from EU Acquisitions

France

GermanyBelgium

Poland

Austria

Romania

Moldova

7

Hungary

CzechRepublic

Slovakia

Bosnia-Hercegovina

Italy

Bulgaria

GreeceSpain

Portugal

Great Britain

Distribution activitiesBeet sugar factoriesSugar refineries



EU Sugar Market

Sugar and isoglucose quota Quota sugar: Minimum beet price Contractual obligation between industry and

farmer Specification of “EU-Toolbox”:

Market withdrawals, conversion of non-quota into quota sugar, import tender

Exports limited to about 1.4 mn t p.a.

Elimination of sugar and isoglucose quota No minimum beet price Contractual obligation between industry and

farmer Further measures/security net (e.g. private

storage) require resolution

No export restrictions

Border Protection: unchanged Import duty 419 €/t (white sugar) resp. 339 €/t (raw sugar) from non-preferential countries

Preferential agreements with LDC-/ACP- and other countries: unchanged

New market framework1 October 2017

EU sugar policyuntil 30 September 2017



Participation in ED&F Man offers a global footprint

Sugar onlyLiquid Products only

Coffee only

Multiple businesses

Long standing successful history (founded 1783) Truely global footprint (~6,500 employees

in 60 countries) Beneficiary of long-term growth in global

sugar demand Approx. 10 mn t global sugar trading volume; one of

the largest sugar trader with significant presence in Central and South America, Far East, South East Asiaand Africa

Participations in sugar production and refining capacities amongst others in the Ukraine, Mexico, Chile and India

Well positioned in further complementary key product categories Trading of coffee (incl. roasting) and molasses (Man liquid products) Further business activities in divisions shipping and financial services



Segment Special Products

(mn €) 2015/16 2014/15 ΔRevenues 1.791 1.724 67 3,9%EBITDA 246 192 54 27,5%EBITDA-Margin 13,7% 11,2%Operating Result 171 120 51 41,9%Operating Margin 9,5% 7,0%Restructuring and special items -2 -3 1Result from companies consolidated at equity 23 27 -4 -14,0%Result from operations 192 144 48 33,3%

Investments 131 126 5 4,5%Fixed Assets 131 125 6 5,1%Financial Assets / Acquisitions 0 1 -1

Capital Employed 1.436 1.377 59 4,3%RoCE 11,9% 8,7%



Segment Special Products: Overview

Revenues (mn €)**

** IFRS 11 adjusted since 2013/14*** incorporates AGRANA bioethanol and starch activities

Revenue split 2015/16

Freiberger31%

BENEO (Functional Food)

23%

PortionPack7%

Starch***39%

1,791mn €

Segment special products shows very solid fundamental development and recordresult*

Growth based on intact mega trends: Unchanged trend to alternative and

functional food ingredients Further growing demand for convenience

products Unchanged global demand growth for

aminal feed (e.g. gluten) New capacities to take benefit of market

growth (e.g. pizza and starch) Production cost reduction via alternative

energy concepts (biomass boiler Chile) Efficiency gains via distribution synergies

* with respect to IFRS 11 regrouping Hungrana in 2013/14 from operating profit toincome from companies consolidated at equity

1,575

1,8061,862

1,740 1,7241,791

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16



Segment CropEnergies

(mn €) 2015/16 2014/15 ΔRevenues 658 764 -106 -13,8%EBITDA 122 25 97 >100%EBITDA-Margin 18,5% 3,3%Operating Result 87 -11 98Operating Margin 13,2% -1,5%Restructuring and special items -18 -28 10Result from companies consolidated at equity 0 0 0Result from operations 69 -39 108


Capital Employed 490 518 -28 -5,4%RoCE 17,7% -2,2%



Houston

São Paulo

DuisburgRotterdam

ZeitzWanzeLoon-Plage

Production facility Tank storage Trading

Wilton

Santiago de Chile

Segment CropEnergies Start build-up of business area 2004 One of the leading bioethanol producers in Europe Capacities:

1.3 mn m³ p.a. fuel bioethanol 150,000 m³ p.a. bioethanol for technical and

traditional applications 1.2 mn t p.a. food- and animal feed

Megatrend: Renewable Energy EU target 2020 transport sector:

10 % from renewable energy sources Reduction of CO2 emissions Stronger independency against oil imports

Sustainable raw material from European agriculture entirely used

Flexiblility of usage of raw material grain and sugar syrup Wanze



Segment Fruit

(mn €) 2015/16 2014/15 ΔRevenues 1.083 1.062 21 2,0%EBITDA 102 103 -1 -1,8%EBITDA-Margin 9,4% 9,8%Operating Result 62 65 -3 -5,2%Operating Margin 5,7% 6,1%Restructuring and special items -3 -6 3Result from companies consolidated at equity 0 0 0Result from operations 59 59 0 0,3%


Capital Employed 823 782 41 5,3%RoCE 7,5% 8,4%



Overview Division Fruit preparations: World market leader

Customers: dairy, baking and ice cream industry Division Fruit juice concentrates: Largest

manufacturer of fruit juice concentrates in Europe (market leader 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

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)

Further growth via fruit juice concentrates merger Reorganisation measures in division fruit

preparations in Central Europe

Segment Fruit – with leading positions in both divisions

AUSTRIA JUICE GmbHAGRANA Fruit S.A.S.

Fruit preparations

~75% of segment revenues⅓ of world market24 facilities worldwide

Fruit juice concentrates

~25% of segment revenuesLargest manufacturer of fruit juice concentrates in Europe14 facilities worldwide

AGRANA Internationale Verwaltungs-und Asset-Management GmbH

Production facility



Agenda







Group revenues decline by 4 % to 3,205 (3,331) million €

EBITDA increased 31% to 310 (236) million €

Operating result increased 56 % to 209 (134) million €

Cash flow increased 24 % to 268 (216) million €

Earnings per share increased to 0.53 (0.22) €

Net financial debt decreased by 47 million € to 492 (539) million €

Net financial debt as % of equity 11 (12) %

Equity ratio still on high level at 57 (58) %

Financial Highlights – H1 2016/17



Summary segments H12016/17







Agenda



Several capital market „anchors“

Market Cap and Shareholder Structure*Market Cap and Shareholder Structure*

Südzucker (69%)

Agrana~ 1.5 bn €

CropEnergies

~ 414 mn €

Südzucker~ 4.3 bn €

Südzucker direct(~7%)

Z&S*** (86%) SZVG** (7%)

Free float(24%)

Free float(7%)

Free float(34%)

SZVG** (56%)

Zucker Invest GmbH

(10%)

Südzucker indirect via Z&S (43%)

* November 2016** Süddeutsche Zuckerrübenverwertungs-Genossenschaft eG*** Z&S Zucker und Stärke Holding AG (~50% Südzucker, ~50% ZBG (Zucker-Beteiligungsgesellschaft m.b.H.))



Rating

Rating agency Long-term rating Short-term rating

BBB- *Positive Outlook **

Baa 2 ***Stable Outlook ****

A – 3 *

P – 2

* since 15 June 2015** since 21 June 2016*** since 17 June 2014**** since 20 May 2016



Strong debt reduction despite high capex volume

* IFRS 11 adjusted since 2013/14

1,632

1,065

854 791

464536 593 555504 553 606

823

996

697

389480

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17e

mn

€

Net Financial Debt

Cash Flow

550 -650>

prev. year

3.2x 1.0x 0.5x 0.8x 1.5xNFD/CF 1.9x 1.4x 1.2x 1.0-1.2x

2,4511,740 2,175 2,648 2,444 2,417Liquidity(mn €)

2,452 2,184 ~2,400



12 94 14

400

2016 2017 2018 2019 2020 2021

EUR-Bond

PromissoryNote

Commercial Paper Programm 600 mn € (perpetual)

Favorable financing maturity profile* (mn €) as of 31 August 2016

* Displayed to 2021; Agrana promissory note: 7 mn € tranche due in 2022

Syndicated loan 1,050 mn €

Hybrid Bond 700 mn € (perpetual)5.25 % p.a. fixed before June 2015 payout annually /

since June 2015 variable 3M-Euribor + 310 bp payout quarterly



Unchanged comfortable liquidity position*

* IFRS 11 adjusted since 28 February 2014

(mn €) 28.02.2013 28.02.2014 28.02.2015 29.02.2016without IFRS 11 with IFRS 11 with IFRS 11 with IFRS 11

Net financial debt -444 -536 -593 -555

Cash & Cash equivalents / securities 613 648 681 604

Gross financial debt -1.057 -1.183 -1.274 -1.158

Long-term financial debt -801 -681 -774 -731

Short-term financial debt -256 -502 -500 -427

Bank credit l ines: 887 759 807 798undrawn 395 313 364 433

Syndicated loan facility 600 600 600 600undrawn 600 600 600 600

Syndicated loan facility Agrana 450 450 450 450undrawn 440 373 371 339

Commercial paper program 600 600 600 600undrawn 600 510 400 475

= Total l iquidity reserves 2.648 2.444 2.417 2.451



Issuer: Südzucker International Finance B.V., NL Guarantor: Südzucker AG Guarantor Rating: BBB- (positive) / Baa2 (stable) S&P/Moody’s

Format: Senior, Unsecured Status: Bearer Notes

Size: EUR 250 million, sub benchmark Maturity: 7 years, November 2023 Coupon: Fixed, payable annually

Use of Procceds: For purposes of general business including the refinancing of existing debt and for financing affiliated companies of the Südzucker Group

Docs/Law: Stand-alone / German Law Denominations: EUR 1,000 and multiples thereof Listing: Regulated market of the Luxembourg Stock Exchange

New Issue: Fixed Rate Euro Denominated Notes



Executive Summary

Diversified business model supports group in ongoing volatile environment World market price driven turnaround in segment sugar, but difficult

transition period into post-2017-era expected Solid development in segments special products, CropEnergies and fruit

Largely completed capacity build-up as well as capacity reserves arebasis for further volume increase

Increasing excess cash improve room to manouevre Continuation of solid financing policy

Maturity Balance sheet ratios Liquidity Financial ratios

Investment Grade Rating



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

12 January 2017Q3 – 1st to 3rd quarter report 2016/17

18 May 2017Press and analysts‘ conference fiscal 2016/17

13 July 2017Q1 – 1st quarter report 2017/18

20 July 2017Annual general meeting for fiscal 2016/17

12 October 2017Q2 – 1st half year report 2017/18

11 January 2018Q3 – 1st to 3rd quarter report 2017/18

Investor Relations

2016-11-21-investor update fixed income-en - südzucker · investor update fixed income, november...

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