Transcript

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

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4

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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

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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

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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

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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

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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

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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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SEGMENT

SUGAR

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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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SEGMENT

STARCH

19

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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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SEGMENT

FRUIT

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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

Corporate presentation 2015

BUSINESS FIGURES2014|15

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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.

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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

OUTLOOKAGRANA

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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

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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.


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