Corporate presentation 2015
S U G A RS TA R C HF R U I TThe natura l upgrade
Corporate presentation 2015AGRANA Beteiligungs-AG
Corporate presentation 2015 2
OVERVIEW
About us
AGRANA-products in daily life
Strategy
Production sites
Group- & ownership structure
Strategy
History
Financials
Segment SUGAR
Segment STARCH
Segment FRUIT
Research & Development
Sustainability
Business figures 2014|15
Outlook
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2
3
4
5
6
7
8
9
10
11
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15
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We refine agricultural raw materials, turning them into a range of different industrial products to supply local producers as well as large multinational companies active in the food processing industry, in particular
We also serve the end-consumer market in the Sugar segment with country-specific brands such as „Wiener Zucker“ in Austria
ABOUT US
AGRANA FACTS
8,700employees
54production
sites€ 2.5 €bn
revenue
Leading
SUGARSUPPLIERIn Central, Eastern & South-Eastern Europe
Major manufacturer of customer-specific
STARCHPRODUCTS
World market leaderin the production of
FRUITPREPARATIONS
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AT A GLANCEAGRANA-PRODUCTS IN DAILY LIFE
SUGAR STARCH FRUIT
for consumers: „Wiener Zucker“ (20%) for food producers:
e.g. for pastries, confectionery, dairy products, preserves, drinks etc. (80 %)
as food ingredients, e.g. forsauces, potato products etc. as child and infant food for cosmetic products for technical applications,
e.g. for paper finishing as animal feeds for bioethanol
fruit preparations in dairyproducts, ice-cream, in bakedgoods or as fruit decoration
fruit juice concentrates in soft drinks and alcoholicbeverages
Corporate presentation 2015 5
STRATEGYREFINING OF AGRICULTURAL RAW MATERIALS
SUGARCENTRAL & EASTERN EUROPE
FRUITGLOBAL
STARCHEUROPE
SynergiesUse synergies between business segments to position the Group optimally for the increasingly volatile operating environment in the segments
Customer- and market-oriented growth in CEE
and Southeastern Europe
Organic growth, and adding value by tailor-
made products
Customer- and market-oriented global growth
Capital marketA long-term asset for shareholders
Investors & Customers Balance of risk, exchange of know-how between the segments, cost savings through synergies
Corporate presentation 2015
INT. PRODUCTION MEETS INT. CUSTOMERS54 PRODUCTION SITES WORLDWIDE
Austria
Czech Rep.
Hungary*Romania
Slovakia
Bosnia-Herzegovina Bulgaria
SUGAR7 sugar beet plants2 raw sugar refineries & Instantina plant
Countries with production sitesMain marketsStarch plantsBioethanol plants
STARCH5 starch plants (incl. 2 bioethanol plants)
Beet sugar plantsRaw sugar refinery
Countries with plants
Other markets
* Also with refiningactivities
FRUIT25 fruit preparation plants and14 fruit concentrate plants
Distribution centre Potential Growth RegionsCountries with production sites
Corporate presentation 2015 7
GROUP STRUCTURE
AGRANA Stärke GmbHAGRANA Zucker GmbH
39 sites5,519 employees1,062.3 €m revenue
10 sites2,326 employees731.1 €m revenue
5 sites863 employees700.1 €m revenue
54 sites8,708 employees2.5 €bn revenue
FRUITSUGAR STARCH
AGRANA Beteiligungs-AG
AGRANA Internationale Verwaltungs-& Asset Management GmbH
Corporate presentation 2015
~86,2%1
8
OWNERSHIP STRUCTURE
TOTAL: 14.202.040 shares
Z & SZucker und Stärke
Holding AG
ZBG
Südzucker
RübenproduzentenBeteiligungs-GmbH
Raiffeisen-HoldingNÖ-Wien
FREE FLOAT
Intention to increase the effective free float
~50%
~70%
~30%
~10% ~50%
~6,5%2
~7,3%
1 without call option exercisable on AGRANA shares held directly by Südzucker2 directly held by Südzucker; 4.9% to be placed in the market
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HISTORYOUR
1988 1989 1990 1991 2012 201320082003 2010 - 2011 2014
FOUNDINGof AGRANA Beteiligungs-AG
PARTNER-SHIPwith Germany‘sSüdzucker AG
INITIAL PUBLIC OFFERING (IPO)of AGRANA Beteiligungs-AG
OPENINGOf the bioethanolfacility in Pischelsdorf|Austria
MERGERof AGRANA JuiceHolding GmbH andYbbstaler Juice AustriaGmbH and thelaunch of the newbrand AUSTRIA JUICE
OPENINGof the new AGRANAResearch & Innovation Center (ARIC) in Tulln|Austria
50% ACQUISITIONIn the Hungarian cornstarch und Isoglucosemill HUNGRANA
DEVELOPMENTof the third businesssegment, Fruit, withthe areas of fruitpreparations andfruit juiceconcentrates
OPENINGof the wheat starch plant in Pischelsdorf|Austria
EXPANSIONof the company‘spresence in the area offruit preparations in theMiddle East and Africawith plants in Cairo|Egypt andJohannesburg|SouthAfrica
EXPANSION of the Sugar andStarch segments by means ofacquisitions in Bosnia-Herzegovina, Bulgaria, Romania, Slovakia, Czech Republic andHungary
EXPANSIONof the company‘s presence in the area of fruit
preparations with a fourth US-plant in Lysander|USA
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REVENUE AND OPERATING PROFIT1988-2015
355.8 500.7580.9
875.7
1,989.2 2,493.5
24.7 12.629.1
80.5 91.9
102.0
0
500
1.000
1.500
2.000
2.500
3.000
3.500
100
200
300
400
€m r
even
ue
€m o
pera
ting
prof
it
REVENUEOPERATING PROFIT
Corporate presentation 2015
1,989.22,165.9
2,577.6
3,065.92,841.7
86.9
128.6
231.0 217.9
166.9121.7
2,493.5
11
REVENUE-, EBIT- AND MARGIN DEVELOPMENT
4.4 %
9.0 %7.1 %
5.9 %4.9 %
€m
5.9 %
REVENUE
EBIT-MARGEEBIT
*The prior-year data have been restated under IAS 8.
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REVENUE BY SEGMENT2014|15 VS PRIOR YEAR
962.9706.7
1,172.1
2,841.7
731.1 700.11,062.3
2,493.5
0
1000
2000
3000
€m
2013|14*2014|15 2013|14* 2014|15 2013|14* 2014|15 2013|14* 2014|15
29.3%
28.1%
42.6%
2014|15
*The prior-year data have been restated under IAS 8.
33.9%
24.9%
41.2%
2013/14*SUGARSTARCHFRUITGROUP
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EBIT BY SEGMENT2014|15 VS PRIOR YEAR
49.2 53.9 63.8
166.9
9.054.1 58.6
121.7
0
50
100
150
200
€m
2013|14* 2014|15 2013|14* 2014|15 2013|14* 2014|15 2013|14* 2014|15
7.4%
44.5%
48.1%
2014|15
29.5%
32.3%
38.2%
2013/14*SUGARSTARCHFRUITGROUP
*The prior-year data have been restated under IAS 8.
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INVESTMENT DEVELOPMENT
16.0 25.355.9
43.1 34.59.1
29.3
59.1
35.0
13.730.8
42.5
34,80
51.8
43.0
0
20
40
60
80
100
120
140
160
2010|11 2011|12 2012|13 2013|14 2014|15*
€m
55.9
149.8
97.1
130.0
91.2
SUGARSTARCHFRUITGROUP
*equity-method
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INVESTMENT DETAILS2014|15
SUGAR
FRUIT
STARCH
Expansion of the molasses desugaring plant in Tulln|AUT Erection of the packaging centre in Kaposvár|HU: finished by the 2015|16
campaign Pulp press replacement in Hrušovany and Opava|CZ, and Sered’|SK
Capacity expansion of waxy corn derivative production in Aschach|AUT Increase of spray drying capacity in Gmünd|AUT Capital expenditures in the wet derivatives plant in Gmünd|AUT Expansion of ActiProt® DDGS storage in Pischelsdorf|AUT
Completion & production start of the US fruit preparations plant in Lysander|New York
Completion of a third production line at the fruit preparations plant in Brazil Expansion of cold storage facility in Morocco
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SUGAR SEGMENT
Sugar: is obtained from sugar beet without any
additives pure, natural product
is a natural provicer of energy as part of a balanced diet
AGRANA: market leader in Austria and top provider in Eastern and South-Eastern Europe
Close partnerships with sugar beet growers: AGRANA offers wide range of advice on growing sugar beet
End-consumer-market is served with country-specific brands
Europe’s largest producer of organic sugar: ‘Wiener Bio Kristallzucker’: sugar made from
organically grown Austrian beet
Corporate presentation 2015
AGRANA SUGARBENEFIT FROM THE STRONG MARKET POSITION IN CEE AND SEE
(1) AGRANA beet quota for 2014|15 Sugar Marketing Year (SMY)(2) Refined raw sugar production (2014|15)
7 SUGAR PLANTS AND2 RAW SUGAR REFINERIES
Austria
Czech Rep.
Hungary*Romania
Slovakia
Bosnia-Herzegovina Bulgaria
Beet sugar plantsRaw sugar refinery
Countries with plants
Other markets
* Also with refining activities
Distribution centre
1,000 TONNESEU-
QUOTA
AGRANA SUGAR BEET
QUOTA(1) MARKET
POSITIONAustria 351 351 #1Hungary 105 105 #1Czech Republic 372 94 #2Slovakia 112 44 #2Romania 105 24 n.a.Total 1,045 618Refining activities in total (incl. Bosnia-H.) 278(2) n.a.
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STARCH SEGMENT
Processing and refinement of top-quality corn, wheat and potatoes to create a variety of different, highly refined starch products
Manufacture of products made of valuable raw materials at the highest quality level, using modern, environmentally friendly methods
Starch and special starch products (eg. organic and GMO free starch) to numerous industrial sectors: food and beverage industries baby food industry paper and paper processing industry textile industry construction chemicals industry pharmaceutical and cosmetic industries
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MARKET POSITIONSTARCH SEGMENT
Austrian production sites: potato starch factory in Gmünd|AUT corn starch plant in Aschach|AUT Bioethanol & wheat starch plant in
Pischelsdorf|AUT
AGRANA Stärke GmbH: operational management and coordination of international holdings in Hungary and Romania
Bioethanol business: part of the Starch segment
Focus on highly refined speciality products Innovative, customer-driven products
supported by application advice Leading position in organic and in GMO-
free starches for the food industry
5 STARCH PLANTS INCL. 2 BIOETHANOL FACILITIES
Countries with production sitesMain marketsStarch plantsBioethanol plants
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FRUIT SEGMENT
processing of fruit in the gentlest way possible, applying state-of-the-art production processes. Refinement of fruit into top quality fruit preparations and fruit juice concentrates
fruit juice concentrate business: operated by AUSTRIA JUICE (formerly Ybbstaler) as a joint venture between AGRANA and RWA (Raiffeisen Ware Austria AG)
AGRANA Fruit … is the global market leader in producing fruit
preparations for the dairy, baking and ice-cream industries
is a leading producer of fruit juice concentrates in Europe and
has established a global presence based on its production facilities and international sales activities
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MARKET POSITIONFRUIT SEGMENT
World Market Leader in Fruit preparations: global market share > 30%
Currently: Europe: stagnating market’s sales volumes of
fruit preparations in Europe at a high absolute level
good market growth rates in the Americas and the Asia-Pacific region
Largest producer of fruit juice concentrates in Europe(AUSTRIA JUICE)
Additional customer portfolio and new markets Optimisation measures taken in previous years
show their positive effects
FRUIT PREPARATIONS
FRUIT JUICE CONCENTRATES
25 FRUIT PREPARATION PLANTS &14 FRUIT JUICE CONCENTRATE PLANTS
Potential Growth Regions
Countries with production sites
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FRUIT PREPARATION – WHAT IS IT ABOUT?
+ =
… most important ingredient of fruit preparations Frozen (IQF or block) Aseptic Purees Concentrates
… sweetens and supportstaste and durability Crystal sugar Liquid sugar (syrup) Other sweeteners
create a good mouth-feel and prevent emulsions Pectins Starch Guar, Xanthan, …
THICKENERS
optional flavors and colours for an even fruitier taste and a nice colour
FRUIT SUGAR FRUIT PREPARATIONS
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RESEARCH & DEVELOPMENTAGRANA RESEARCH & INNOVATION CENTER TULLN|AUT
Bundling of all R&D activities in Tulln
Synergies in crossdivisional research topics:Clean Label / Nutrition / Sweeteners / Flavors
Networking with other research institutions
Aim: to secure and actively shape the company’s success in the future through innovations: product innovations innovations related to our processes and
production technology
State-accredited testing unit for yield and quality evaluation of sugar beets
Specialised R&D expertise is also made available to third parties
AGRANA Research & Innovation Center (ARIC)
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SUSTAINABILITY AT AGRANA
Sustainability = a harmonious balance of economic, environmental and social responsibility
AGRANAs six subject areas in terms of sustainability: Environmental and social criteria in the sourcing of agricultural raw materials Environmental and energy aspects of production Labor practices and human rights of employees Product responsibility and sustainable products Compliance and business conduct Social engagement
AGRANA formulated three principles that sum up its concept of sustainability more concretely and reflect the six core subjects most significant for the Group:
Utilise almost 100% of our raw materials and employ low-emission technologies to protect the environment
Respect all our stakeholders and the communities where we operate Engage in long-term partnerships
At AGRANA we …
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SUSTAINABILITY AT AGRANAMEASURES IN THE CORE BUSINESS
Reduced emissions by low-temperature dryers in Tulln and Leopoldsdorf|AUT Since its introduction in FY 11|12 around
95,000 tonnes of CO2-eq. saved Project was awarded climate protection
award from Austria Environment Ministry Kaposvár|HU: operation of third fermenter
enabled in FY 13|14 about 70% of primary energy needs to be met from biogas produced on site
Certification of Austrian production sites in accordance with ISO 50001 since 2014
ENERGY EFFICIENCY
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SUSTAINABILITY AT AGRANAMEASURES IN THE CORE BUSINESS
Almost complete (98.6 to 99.9%) of raw materials use in all segments through the efficient use of raw materials technical innovations and product development (main & by-products)
Biorefinery Pischelsdorf|AUT: Integration of 2013 opened wheat starch plant and the bioethanol facility 100% grain utilization resource
efficiency
„ZERO-WASTE“-PRINCIPLE
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BIOREFINERY PISCHELSDORF
WHEAT STARCHBIOETHANOL
ActiProt® High-purity CO2
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WITH ONE RAW MATERIAL TO FOUR PRODUCTS" ONE RAW MATERIAL = FOUR PRODUCTS"
WHEAT
WHEAT + CORN
roller-mill
starch-factory
fermenterhammer-mill
ethanol-plant
WHEAT BRAN
A-WHEAT STARCH
WHEAT GLUTEN
BIOETHANOL
ACTIPROT®
BIOGENIC CO2
B+C -Starch
wheat starch products1
2
3
4
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FOUR PRODUCTS AT PISCHELSDORF SITE
Wheat starch, bran and gluten
Bioethanol: Capacity: processing of around 500,000 tonnes of cereals p.a. to approx. 240,000 m³
bioethanol p.a. Sales of bioethanol:
50 %: domestic 50 %: export > loss of 190,000 tonnes of greenhouse gas emission savings for
Austria! Ecological added value:
Saving of greenhouse gas emissions compared to petrol(life cycle analysis performed by Joanneum Research)
GMO-free protein-rich animal feed (ActiProt®): Production volume: approx. 180,000 to p.a. Ecological added value: substitution of around 1/3 of Austria’s soya-protein animal feed
imports from South America
Biogenic carbonic acid (processed by Air Liquide to make high-purity carbonic acid) Liquification of biogenic CO2 previously bound in plants Used in particular for carbonised beverages This substitutes fossil-based CO2
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KEY FINANCIALS
€m 2014|15 2013|14* Change %
Revenue 2,493.5 2,841.7 (12.3)
EBITDA 181.9 214.3 (15.1)
Operating profit (EBIT) 121.7 166.9 (27.1)
Operating profit before except. items (5.7) 3.9 (245.7)
Operating Margin % 4.9 5.9 (1.0) pp
Profit for the period 84.6 107.0 (20.9)
Dividend 3.60 3.60 0.0
Investments 91.2 130.0 (29.8)
Earnings per share 5.70 7.40 (23.0)
Employee, average 8,708 8,505 2.4
*The prior-year data have been restated under IAS 8.
Corporate presentation 2015 35
CONSOLIDATED BALANCE SHEET
€m (condensed) 2014|15 2013|14* Change €m/pp
Non-current assets 1,136.6 1,104.5 32.1
Current assets 1,270.3 1,287.7 -17.4
Total assets 2,406.9 2,392.2 14.7
Equity 1,194.4 1,191.0 3.4
Non-current liabilities 418.1 412.5 5.6
Current liabilities 794.4 788.7 5.7
Total equity and liabilities 2,406.9 2,392.2 14.7
Equity ratio 49.6% 49.8% -0.2pp
Net debt 330.3 386.8 -56.5
Gearing ratio 27.7% 32.5% -4.8pp
*The prior-year data have been restated under IAS 8.
Corporate presentation 2015 36
CONSOLIDATED CASHFLOW STATEMENT
€m (condensed) 2014|15 2013|14* Change %
Operating cash flow before change in working capital
168.6 186.1 -9.4
Losses/(gains) on disposal of non-current assets 0.1 (1.0) 110.0
Change in working capital 58.6 98.8 -40.6
Net cash from operating activities 227.3 283.9 -19.9
Net cash (used in) investing activities (87.1) (126.5) 31.1
Net cash (used in) financing activities (78.4) (139.1) 43.6
Net increase in cash and cash equivalents 61.8 18.3 237.7
*The prior-year data have been restated under IAS 8.
Corporate presentation 2015 37
ANALYSIS OF NET FINANCIAL ITEMS
€m 2014|15 2013|14* Change %
Net interest expense (10.2) (13.4) 23.9
Currency translation differences 8.7 (16.9) 151.5
Share of results of non-consolidated subsidiaries and outside companies
0.8 1.1 -27.3
Other financial items (4.5) (1.0) 350.0
Total of net financial items (5.2) (30.2) 82.8
*The prior-year data have been restated under IAS 8.
Corporate presentation 2015 39
Group revenue: expected to remain steady EBIT: slight increase projected
Sugar: persistent strong general downward pressure on prices
Starch: competitive pressure in saccharificationproducts, but improved margin projection for bioethanol
Fruit: revenue and EBIT growth Total investment in the three business segments in
2015|16 at about € 112 million thus exceeding depreciation of just under € 90 million
OUTLOOK
2015|16
Corporate presentation 2015 40
DISCLAIMER
This presentation is being provided to you solely for your information and may not be reproduced or further distributed to any other person or published, in whole or in part, for any purpose. This presentation comprises the written materials/slides for a presentation concerning AGRANA Beteiligungs-AG (“Company”) and its business.
This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offerto purchase or subscribe for, any shares in the Company, nor shall it or any part of it form the basis of, or be relied on inconnection with, any contract or investment decision.
This presentation includes forward-looking statements, i.e. statements that are not historical facts, including statements about the Company's beliefs and expectations and the Company's targets for future performance are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore investors should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events.
Although care has been taken to ensure that the facts stated in the presentation are accurate, and that the opinions expressed are fair and reasonable, the contents of this presentation have not been verified by the Company no representation or warranty, express or implied, is given by or on behalf of the Company any of its respective directors, or any other person as to the accuracy or completeness of the information or opinions contained in this presentation. Neither the Company nor any of its respective members, organs, representatives or employees or any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising inconnection therewith.