investor roadshow - südzucker · 3/3/2020 · successful growth strategy in specialty starches...

Südzucker Group, page 1

Investor RoadshowWarsaw, 3 March 2020

Nikolai Baltruschat (Head of Investor Relations)


FINANCIAL TRANSPARENCY

Agenda1. Overview and strategy page 3

2. Current highlights page 12

3. Capital Market and Financing page 14

4. Development non-sugar-segments page 20

5. Development segment sugar page 44

6. Financial Highlights Q3 2019/20 page 55

7. Outlook 2019/20 page 67

8. Appendix Long-term development and key figures page 73 Additional information page 80



Südzucker Group at a glance

Global operating German food group with long-standing corporate history and diversified business model: 1837: Foundation of first sugar company 1926: Foundation of Süddeutsche Zucker-AG ~ 100 production facilities ~ 19.200 employees, worldwide

Majority shareholder / Key shareholders: SZVG: 58 % Zucker Invest GmbH: 10 %

Stock exchange listing in Germany SDAX-member Trading volume*: ~ 0.9 mn shares/day

Sustainable investment grade rating

* Financial year 2018/19

Sugar(38%) Fruit

(18 %)

Group Revenues 6.8 bn €*

Sugar(38 %)

Non-Sugar (62 %)

Special Products (34 %)

Fruit(18 %)

CropEnergies(10 %)



Revenues 6.8 bn €

EBITDA 353 mn €

Op. 24 mn €Result

Restructuring and special items

Südzucker Group: Key ratios 2018/19

Cash flow 377 mn €

Net Financial Debt

1,129 mn €

Equity ratio 49 %

Sugar: 2.6 bn €Non-Sugar: 4.2 bn €

Sugar: -102 mn €Non-Sugar: 455 mn €

Sugar: -239 mn €Non-Sugar: 266 mn €

Goodwill-Impairment: -673 mn €Restructuring expense: -147 mn €



Return on Capital Employed (RoCE)*

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Ø 7 years

Sugar 22.4 % 13.7 % 0.2 % -2.6 % 2.3 % 4.2 % -9.0 % ~4.5 % Non-sugar 9,5 % 6,9 % 6,4 % 11,6 % 12,4 % 9,1 % 7,8 % ~9,1 % Special Products 9.5 % 6.3 % 8.7 % 11.9 % 12.2 % 7.7 % 7.3 % ~9.1 % CropEnergies 17.3 % 6.4 % -2.2 % 17.7 % 20.4 % 15.9 % 7.2 % ~11.8 % Fruit 5.0 % 8.1 % 8.4 % 7.5 % 8.3 % 9.0 % 9.3 % ~7.9 %

RoC

EG

roup

5,9505,873 5,877

5,791

6,012

6,650

6,072 6,032

10.6 % 3.1 % 4.2 % 7.1 % 6.7 % 0.4 % 6.9 %16.3 %

Capital Employed

(mn €)

RoCE (%)

* Capital Employed decrease mainly driven by goodwill impairment segment sugar FY 2018/19



Group strategy

take benefit of megatrends

support and stipulateemployees

focus on core competences

advancediversificationsynergy usage strengthen

market position

continue solid financingstrategy / target value-oriented investments

increaseshareholder value

act sustainable



Synergy example: Zeitz site- five composite factories

CO2-Liquefaction

Starchfactory

Bioethanolfactory

Sugar factoryNeutral alcohol

factory



Portfolio benefits from long-term megatrends

18,000

58,000

98,000

138,000

178,000

218,000

2,000

4,000

6,000

8,000

tmn

Sources: United Nations, F.O. Licht, ERS International Macroeconomic Data Set

population growth worldwide

sugar consumption worldwide

,0

4,000

8,000

12,000

USD

per capita income

Source: ERS International Macroeconomic Data Set

emerging markets

worldwide

0

20

40

60

80

100

120

0

20

40

60

80

100

120

USD / barrelmn barrel / day

Source: BP, EIA

oil consumption

crude oil price,200

,400

,600

,800

1,000

mn t

Source: USDA

global animal feed production



… with volatile and cyclical market conditions and …

400

450

500

550

600

650

700

750

800Ethanol (€ / m³)

0

50

100

150

Brent (USD/barrel)

1,00

1,10

1,20

1,30

1,40

1,50

1,60

1,70EUR/USD

-1,0

0,0

1,0

2,0

3,0

4,0

5,0

6,0 3M-Euribor (%)

50

100

150

200

250

300

350Wheat / Maize (€/t)

150

250

350

450

550

650White sugar (€/t)



…environment influenced by political decisions

Brasil Change of government

RenovaBio program

Currency development

EU Coupled payment

for beet growing Prohibition of

Neonicotinoids RED II (renewable

energy directive) Brexit

Global trade WTO

NAFTA

CETA

TTIP

Mercosur

…



Current highlights

Global sugar balance for SMY 20/21: Deficit of 3.0 mn t expected Global sugar balance for SMY 19/20: Deficit of 11.1 mn t expected EU sugar market 18/19 and 19/20: Increase spot price in light of inventory

reduction via drought 2018 and acreage reduction in 2019 Execution of decided restructuring plan

Confirmation of full year forecast in light of weak third quarter

Ethanol price stabilization on high level … …supports full year guidance

Ethanol price stabilization on high level Forecast range operating result adjusted in December:

~ 100 (so far 70 to 90) mn €

SugarSpecial

Products

CropEnergies

Fruit

Operating result outlook adjustment (18 December 2019)70 to 130 (so far 50 to 130) mn €

FY 19/20: Preliminary figures 23 April 2020Group



Three strong anchors in the capital market

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

Market Cap

3.1 bn €

SZVG* (6%)

Freefloat (32%)

SZVG* (58%)

Zucker Invest GmbH (10%)

Südzucker (69%)

Freefloat (25%)

Südzucker direct (3%)

Z&S** (78%)

Freefloat (19%)

Südzucker indirectvia Z&S** (39%)

Market Cap

1.2 bn €

Market Cap

0.9 bn €

Südzucker AG

CropEnergies AGAGRANA Beteiligungs-AG



Investment Grade Rating

Rating agency Long-term rating Short-term rating

BBB- *Negative Outlook **

Baa3 ***Negative Outlook ****

A – 3 *

P – 3 ***

* since 18 January 2019** since 24 May 2019

*** since 12 December 2018**** since 5 April 2018



Continued high liquidity

(mn €) 29.02.2016 28.02.2017 28.02.2018 28.02.2019

Net financial debt -555 -413 -843 -1.129

Cash & Cash equivalents / securities 604 725 730 499

Gross financial debt -1.158 -1.138 -1.573 -1.627

Long-term financial debt -731 -914 -1.117 -1.126

Short-term financial debt -427 -224 -456 -501

Bank credit l ines: 798 786 814 849undrawn 433 464 470 350

Syndicated loan facil ity 600 600 600 600undrawn 600 600 600 600

Syndicated loan facil ity Agrana 450 450 450 450undrawn 339 450 450 375

Commercial paper program 600 600 600 600undrawn 475 600 600 370

= Total l iquidity reserves 2.451 2.839 2.850 2.195



111 83

500300

100

80

40

2020 2021 2022 2023 2024 2025 2026

Bulletloans

EUR-Bond1.25 %

EUR-Bond1.00 %

AGRANApromissorynotesCommercial Paper Programm 600 mn € (permanent)

Maturity profile of main financial liabilities(mn € as of 30 November 2019)

Syndicated loans 1,050 mn € *

Hybrid Bond 700 mn € (perpetual)variable coupon: 3M-Euribor + 310 bp;

2.71 % p.a. for 31.12.2019 – 31.03.2020 (excluded); payout quarterly

* Maturity: June 2021/300 mn €, August 2022/150 mn €, July 2024/600 mn €



NFD/CF 3.2x 1.9x 1.4x 1.0x 1.5x 1.2x 0.7x 1.2x 0.7x 1.2x 3.0x

Equity Ratio 42 % 47 % 51 % 48 % 54 % 53 % 53 % 55 % 56 % 54 % 49 %

1,632

1,065

854791

464536 593 555

413

843

1,129

504 553 606

823

996

697

389480

634693

377

mn

€

Net Financial Debt

Cash flow

Financial key figures



Non-sugar-activities* (I): Strong market position in growing business areas…

Functional FoodRevenues >600 mn €

Global megatrend functional food; ongoing above average growth potential

Positioning as world market leader in main product categories

PortionPackRevenues >100 mn €

European market leader in food and non-food portion packs Growth options outside of Europe

StarchRevenues >900 mn €

Successful growth strategy in specialty starches Growth opportunities secured via investment program

FruitRevenues >1 bn €

World market leader in fruit preparations Sustainable growth and stable margins

PizzaRevenues ~1 bn €

Market leader in Europe and USA in private label business High potential in USA private label business

Bioethanol(mainly CropEnergies)Revenues ~1 bn €

Market leader in Europe Further market potential secured in EU until 2030 (RED II)

Midterm revenues of 5 bn € and EBITDA of 600 mn € * based on 2021/22



Non-sugar-activities* (II): …growth secured via projects

Functional FoodRevenues >600 mn €

Capacity extension, respectively preparation at all BENEO sites Enlargement of product range

PortionPackRevenues >100 mn €

Acquisition CustomPack, UK Market entry South Africa

StarchRevenues >900 mn €

Investment program 2013 to 2020 in amount of 400 mn €at sites Aschach, Gmünd, Pischeldorf and Zeitz through new and extended facilities

FruitRevenues >1 bn €

Market entry India Second fruit preparation factory China Participation in fruit preparation producer in Algeria

PizzaRevenues ~1 bn €

Acquisition Richelieu Foods, USA, high market potentialvia development of private label share

Bioethanol(mainly CropEnergies)Revenues ~1 bn €

Further factory optimization and capacity flexibility leads to higher yearly average production volume

Midterm revenues of 5 bn € and EBITDA of 600 mn € * based on 2021/22



Segment Special Products

(mn €) 2018/19 2017/18Revenues 2.294 1.997 297 15 %EBITDA 268 255 13 5 %EBITDA-Margin 11,7% 12,8%Depreciation -112 -97 -15 14 %Operating Result 156 158 -2 -1 %Operating Margin 6,8% 7,9%Restructuring and special items -51 -3 -48 > 100Result from companies consolidated at equity 17 30 -13 -46 %Result from operations 122 185 -63 -34 %

Investments 172 551 -379 -69 %Fixed Assets 165 121 44 36 %Financial Assets / Acquisitions 7 430 -423 -98 %

Capital Employed 2.133 2.055 78 4 %RoCE 7,3% 7,7%

Δ



Special Products segment: Overview

* incorporates AGRANA bioethanol and starch activities

Pizza39 %

Functional Food22 %

PortionPack5 %

Starch*34 % 2,294

mn €

Leading market positions in all four divisions Sustainably high cash flow quality High depreciation level in light of

internal/external growth Very sound fundamental development Growth based on global megatrends:

unchanged trend to alternative andfunctional food ingredients

further increase in demand forconvenience products

unbroken global demand growth foranimal feed (e.g. Gluten)

Continuous capacity adjustment followsmarket growth 120

171 184158 156

2014/15 2015/16 2016/17 2017/18 2018/19

Revenue split 2018/19

Operating Result (mn €)



Special Products segment: Division Functional Food

Offstein

Sales OfficesRegional CentersProduction facility

BENEO bundles functional food activities 5 production sites globally and international

distribution network Main product categories:

Prebiotic fibres from chicory roots: Core productsInulin and Oligofructose

Functional carbohydrates from sugar beet: Core products Isomalt (sole sugar replacer made out of sugar) and Palatinose™ (functional sugar withprolonged energy allocation)

Functional ingredients from rice: e.g. ricestarches, rice flours and rice proteins

Distribution of functional wheat protein (Gluten), produced in Südzucker Group

World market leader for functional chicory- and rice products as well as for Isomalt/Palatinose™

Ongoing global increase in demand for functionalfood ingredients

Increasing awareness for healthy nutrition and growing per-capita income (emerging markets)



6 production sites and distribution within EU Main product categories:

Starch products: Specialty starches for paper, textile-, cosmetics-, pharmaceutical andconstruction industries; focus on organic and GM-free starches for food industries

Bioethanol production: Bioethanol production fromgrain and production of by-products (food andanimal feed)

Leading market position in main product categories Ongoing growth for speciality starches Worldwide strongly growing demand for animal feed Mandatory ethanol blending within EU

High investment volume (~ 400 mn €) in current cycle: New starch factory Pischelsdorf (2013) New starch factory Zeitz (2016) Extension starch factory Aschach (2017) Extension starch factory Pischelsdorf (2020)

Special Products segment: Division Starch*

Zeitz

* incorporates AGRANA bioethanol and starch activities

Production starch

Gmünd (A)Pischelsdorf (A)Aschach (A)

Szabadegyhaza (HU)Tandarei (RO)

Production bioethanol

Zeitz (DE)



Special Products segment: Division Pizza

11 production sites in EU (6) and in USA (5); distribution in EU and USA

Main product categories: Deep frozen and chilled pizza

Pasta dishes

Snacks & baguettes

Pourables

Mostly private label business forfood retailing („B2B“)

Market leader private label pizza market in Europe and USA Employees: ~ 3,500 Pizzas per day: ~ 3.5 mn Revenues: ~ 1 bn €

Strong platform for further growth

# 1 Europe

# 1 USA

Public Warehouses – PourablesPublic Warehouses – PizzaProduction facility



Special Products segment: Division PortionPack

Oud Beijerland (NL)

Landgraaf (NL)

La Llagosta

PragueHerentals (B)

Oud-Beijerland (NL)

Nuremberg

Telford

Vienna

Production facility Trading companies

6 production sites in EU; distribution in EU Main product categories:

Coffee supplies (sugar, milk…)

Biscuits

Chocolates

Breakfast

Seasoning

Sweets & Snacks

Fruit purees

Other unit packed products (e.g. for hotels, etc.)

European market leader for portion packs for foodindustry

Unchanged trend for unit packed products and„out-of-home“ consumption

September 2018, Acquisition CustomPack, Telford/Great Britain



Special Products segment: Strategy

Functional FoodUsage of global

platform, open up newmarkets; product

innovations

PortionPackExtension of EU No. 1 position; expansion of

product portfolio

Special Products

StarchExtension of successfulniche strategy; increase

market share via continuous capacity

increase

PizzaKeep market position

EU/extend USA; increase profitability; clear

differentiation against competitors



Special Products segment: Outlook 2019/20

Increase in production and sales volumes in all divisions Positive trend in ethanol market continues Support through improved sugar market environment

Revenues

Operating Result

Significant increase in operating result (prev. year: 156 mn €)

Moderate increase in revenues(prev. year: 2,294 mn €)



Segment CropEnergies

(mn €) 2018/19 2017/18Revenues 693 808 -115 -14 %EBITDA 72 111 -39 -35 %EBITDA-Margin 10,4% 13,7%Depreciation -39 -39 0 0 %Operating Result 33 72 -39 -54 %Operating Margin 4,7% 8,9%Restructuring and special items 10 -1 11 -Result from companies consolidated at equity 0 0 0 -Result from operations 43 71 -28 -39 %

Investments 13 20 -7 -32 %Fixed Assets 13 20 -7 -32 %Financial Assets / Acquisitions 0 0 0 -

Capital Employed 456 452 5 1 %RoCE 7,2% 15,9%

Δ



São Paulo

AmsterdamRotterdam

ZeitzWanzeLoon-Plage

Wilton

Santiago de Chile

CropEnergies segment: Overview

Production facility Tank storage Distribution

4 production sites in EU; offices/distribution sites in EU and South America

Main product categories: Bioethanol as fuel and traditional applications

(1.3 mn m³ p.a.) Food and animal feed (>1 mn t p.a.)

EU market leader Megatrend renewable energies

More renewable energy in transport in 2030(RED II: 14 % (max. 7 % 1G)

Reduction of greenhouse gas emissions Higher independency from imported oil

Sustainable raw materials from European agricultureand complete utilization



CropEnergies segment: Market environment (I)

Wanze

Higher ethanol and lower raw material prices in 1st-3rd quarter Ethanol*: 605 (475) €/m³ Grain**: 178 (187) €/t

Feedstock supply 2019/20 Unchanged EU biomass situation:

starch long, protein short Net imports protein sources: 42 mn t,

net exports starch sources: 16 mn t

Stagnating/shrinking farm acreage in the EU

EU grain harvest: 316 mn t (+9 %) Exceeds demand of 290 mn t by 9 %

Increase of ending stocks by 21 % to 57 mn t

World grain harvest***: 2,162 mn t (+1 %) 1 % below demand of 2,188 mn t

Ending stocks 594 mn t (-4 %)

* Ethanol T2 FOB Rdam ** Wheat (Euronext Paris), next date of expiry *** all varieties, except rice

100

150

200

250

300

350

200

300

400

500

600

700

800

(€/t

)

(€/m

3 )

Euronext Paris Wheat No. 2

Nettorohertrag für Weizen‐EtOH

NYMEX Fuel EtOH T2 FOB Rdm.

Quotation: Wheat €/t / Ethanol €/m3


2.3 2.5 2.7

1.5 1.5 1.50.9 0.9 0.90.8 0.7 0.8

0

2

4

6

2018 2019e 2020e

Other EU Germany France UK EU ethanol market 2020e (mn m3)

Production: 5.3 +2 % (add. 2.4 non-fuel) Consumption: 5.9 +6 % (add. 2.6 non-fuel)

Increasing blending obligations in EU countries in 2020

6 % GHG-target 2020 requires more non-fossil alternatives

RED II: 1G max 7 %, but not more than 2020 +1 %

E10 available in more European countries In the Netherlands since 1 Oct 2019 Slovakia, Hungary and Denmark as of

1 Jan 2020 2020 plans: Austria, Lithuania, Latvia

CropEnergies segment: Market environment (II)

EU sales fuel ethanol (mn m³)

E10 availability across Europe – Sept. 2019Source: F.O. Licht

Source: ePure



Ethanol… as direct blend to petrol

(e.g. E5, E10, E85)

as component in ETBE (octane booster)

E10 reduces CO2, NOx and particulate matter WLTP* benchmark, label in tank flap of

all new cars Potential savings (EU): >20 Mt CO2eq.

(8 million less cars on the road)

Potential for 20 % ethanol blending (Super E20) Potential savings: >40 Mt CO2eq.

(16 million less cars on the road) Successful racing results

(Porsche/Nürburgring)

Renewable ethanol – advantages

Source: bdbe

* worldwide harmonized light-duty vehicle test

Super (E5) Reference

Super E10 Measurement: particulate matter

Super E10 Measurement: Nitrogen Oxide

Reduction by

Ø 71 %

Ø 25 %

Reduction by

BlendingEthanol

Petrol

E5 E10 E20 E85



CropEnergies segment: Strategy

EnforceR&D activities

Full usageof production

capacities

Further efficiency gains

CropEnergies

Expanddiversification

Strengthen leadingmarket position

Targeted facilitydevelopment



CropEnergies segment: Outlook 2019/20

Operating result of approximately 100 mn € expected(prev. year: 33 mn €)

Revenues of approximately 810 mn € expected(prev. year: 693 mn €)

Still robust demand for climate-friendly alternatives to fossil fuels … … paired with sales revenues for renewable ethanol from European value

creation far exceeding previous year‘s level

Revenues

Operating Result



Segment Fruit

(mn €) 2018/19 2017/18Revenues 1.179 1.161 18 2 %EBITDA 115 114 1 2 %EBITDA-Margin 9,8% 9,7%Depreciation -38 -38 0 0 %Operating Result 77 76 1 2 %Operating Margin 6,6% 6,5%Restructuring and special items 0 0 0 -Result from companies consolidated at equity 0 0 0 -Result from operations 77 76 1 2 %

Investments 62 49 13 26 %Fixed Assets 56 49 7 14 %Financial Assets / Acquisitions 6 0 6 -

Capital Employed 830 844 -14 -2 %RoCE 9,3% 9,0%

Δ



28 production sites globally; distribution in more than80 countries

World market leader in fruit preparations (market share >30 %)

Main customer groups: Dairy companies Ice cream producers Bakeries Food service industry

Unique global structure for sourcing, production and distribution

Fruit segment: Fruit preparations

Production facility



14 production sites in Europe and one in China

Main product categories: Fruit juice concentrates Beverage compounds Fruit wines Flavouring NFC-Juices

European market leader for fruit juice concentrates

Trend towards fruit juices and bio-products unchanged

Fruit segment: Fruit juice concentrates

Production facility



Fruit segment: Strategy

Development of innovations

Usage of internal/externalgrowth options

Develop newmarkets togetherwith customers

Further costsaving measures

Further usageof global

growth trends

Fruit

Enhance regional diversification



Significant earnings decrease in division fruit preparations Significantly lower earnings in division fruit juice

concentrates due to lower capacity utilisation and loweravailability of apples

Fruit segment: Outlook 2019/20

Revenues

Operating Result

Division fruit preparations with slightly rising salesvolumes and stagnating revenues

Stable revenues in division fruit juice concentrates

Revenues on previous year‘s level(prev. year: 1,179 mn €)

Operating result significantly below previous year‘s levelexpected (prev. year: 77 mn €)



Summary non-sugar-segments

Revenues

EBITDA

Operating Result

2018/19 2019/20e 2021/22e

4.2 bn €

455 mn €

266 mn €

~5.0 bn €

~600 mn €

~400 mn €

Sound earnings level, despite low ethanol and sugar prices Basis for further revenues and earnings growth secured via investments



Segment Sugar

(mn €) 2018/19 2017/18Revenues 2.588 3.017 -429 -14 %EBITDA -102 278 -380 -EBITDA-Margin -3,9% 9,2%Depreciation -137 -139 2 -1 %Operating Result -239 139 -378 -Operating Margin -9,2% 4,6%Restructuring and special items -769 24 -793 -Result from companies consolidated at equity 5 -28 33 -Result from operations -1.003 135 -1.138 -

Investments 147 173 -26 -15 %Fixed Assets 145 171 -26 -15 %Financial Assets / Acquisitions 2 2 0 -10 %

Capital Employed 2.653 3.299 -647 -20 %RoCE -9,0% 4,2%

Δ



Sugar segment: Restructuring plan parameters

Focus on EU market, opportunistic world market exports 5.1 4.4 mn tSugar

production*

Closures of 5 sugar factories in Germany, France and Poland 29 24Number of

sugar factories

Reduction of employees in productionand administration, further centralization

~7,000 ~6,300 FTEEmployees

* Based on 125 days campaign norm



Sugar segment: Restructuring plan measures

Kürzung Erweiterungs-investitionen

Organization Simplification processes and management structures■ Cutting-back administration Belgium, Germany, France and Poland■Workplace reduction in administration in relation

to closure of locations■ Adjustment of global sugar sales organization

Factory structure Improvement of production costs and supply chain■ Reduction of Ø-sugar production about 0.7 mn t/p.a.■ Structural campain length at least 125 days per factory■ Closure of sugar factories Germany (2) and France (2)

following campaign 2019 as well as Poland (1) before campaign 2019■Optimization sugar logistic structure (Assortment and storage sites)

Administration cost reduction

Reduction of fixed costs, maintenance and capex



Impact from restructuring and special items

2018/19 2019/20e 2020/21e 2021/22e 2022/23e

p&l

cash impacton NFD

~150 mn €prov. social plan; depreciationsfixed assets, contracts

673 mn €goodwill-impairmentsugar

~100 mn €cost savings dependent on sugar worldmarket price and further restructuringexpenses

~40 mn € (cash out)mainly social plan

~150 mn € (cash in)working capital release via volume reduction



Sugar balance world*

* F.O. Licht estimates, February 2020

2018/19: Balanced market; significant decrease in production

2019/20e: Market in significant deficit(-11.1 mn t); further reduction in production below further growingconsumption EU slightly below previous year‘s level

Brasil: Currently high ethanol production India: High inventory level to burden world

market Continued export subsidy program

2020/21e: Market with further deficit(-3 mn t); despite expected increase in production, further decrease in endingstock

174,0 179,6

194,2 185,0174,5

184,2179,6 180,3 182,7 183,4 184,9 186,6

71,2 69,178,6 79,1

68,0 65,0

2015/16 2016/17 2017/18 2018/19 2019/20e 2020/21e

39,6%* 38,3%* 43,0%* 43,1%* 36,8%* 34,8%*

Production Consumption Ending Stock * Stocks to use ratio



Sugar price development: Supply and demand as main drivers

* World market price ex works: without transportation and other costs

0

100

200

300

400

500

600

700

800

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

World market price* EU price ex works

€/t



Sugar balance EU* (in mn t)

* EU-Commission on basis SMY∎ Prod. (from beet) ∎ Prod. (from maize) ∎ Import ∎ Consumption ∎ Export ∎ Ending stocks

20.2 19.3 18.5 19.6 19.0 19.0

1.51.4

1.4

3.41.7 1.2

0

5

10

15

20

25

19.5

14.916.8

21.3

17.6 17.3

0.8

0.8

0.8

0.6

0.6 0.6

2.8

2.9

2.5

1.3

1.9 2.0

4.01.9 2.2 2.5 1.8 1.6

SMY 2017/18 Record harvest led to high

export surplus Increasing price pressure

during year burdenedannual contracts 2018/19

SMY 2018/19 Drought related lower

harvest leads to decrease in exports and lower inventory level

Spot price increase to import parity level

SMY 2019/20e Cultivation restriction leads

to almost stable production and balanced market

Price increase for open annual contracts 2019/20

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20e



250

300

350

400

450

500

550

600

Average EU sugar price to increase gradually

EU Spot PricesEU Price Reporting

Campaign 2017: Abolition of quota system Extension of acreage Record yield Record sugar production ~ 21 mn t High exports, inventory increase Price pressure

Campaign 2019: Restricted cultivation area Sugar production 17-18 mn t Low exports Gradual price increase EU net importer since Jan 2019

Campaign 2018: Drought, bad harvest Sugar production ~ 17 mn t Low exports, inventory decrease Price increase spot market Too late for contractual market



Reduction world market exports and stronger

focus on EU sales

Sugar segment: Strategy

Maximum utilization of

factory capacity

Capacityadjustment

to new market environment

Further centralization of administration

Cost savings across the whole

value chain

Defend and extendleading EU

market position

Sugar EU



Decrease in sales volumes and reduced harvest expectation In average higher sales revenues

Sugar segment: Outlook 2019/20

Since start SMY 2019/20 (October 2019) earningsimprovement against H2 2018/19 via price increase

Earnings improvement potential not fully exploited as not all sugar contracts were up for negotiation and due to decline in sales volumes

Significantly higher production costs due to higher rawmaterial costs and raw material secure premium

Operating result expected in range -200 to -260 mn € (prev. year: -239 mn €)

Significant decrease in revenues (prev. year: 2,588 mn €)Revenues

Operating Result



(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %Revenues 1.713 1.717 -0,2 5.028 5.192 -3,2EBITDA 158 85 87,4 373 345 8,2

EBITDA margin 9,2% 4,9% 7,4% 6,6%Depreciation -119 -108 10,9 -260 -229 13,6Operating result 39 -23 - 113 116 -2,5

Operating margin 2,3% -1,4% 2,2% 2,2%Restructuring costs/special items -7 8 - -12 7 -Result from companies consolidated at equity -60 5 - -58 16 -EBIT -28 -10 > 100 43 139 -69,1Net earnings attributable to shareholders -73 -31 > 100 -87 -3 > 100Earnings per share (€) -0,35 -0,15 > 100 -0,42 -0,01 > 100Cash flow 107 66 62,1 283 293 -3,5Investments in fixed assets* 74 87 -15,3 224 254 -11,7Net financial debt 1.359 781 74,1Employees 19.947 20.129 -0,9

3rd quarter 1st-3rd quarter

Group income statement

* Including intangible assets



Financial Highlights – 9M 2019/20

Revenues

EBITDA

Operating Result

Cash flow

Earnings per share

Net financial debt

-3 % to 5,028 (5,192) mn €

+8 % to 373 (345) mn €

-3 % to 113 (116) mn €

Sugar: 1,739 (2,060) mn €

Non-Sugar: 3,289 (3,132) mn €

-4 % to 283 (293) mn €

-0.42 (-0.01) €

1,359 (781) mn €

Sugar: -37 (5) mn €

Non-Sugar: 410 (340) mn €

Sugar: -146 (-83) mn €

Non-Sugar: 259 (199) mn €



Overview segments 9M 2019/20

Sugar

SpecialProducts

CropEnergies

Fruit

Group

(mn €) 2019/20 2018/19 abs. % 2019/20 2018/19 abs. %3rd quarter 1st-3rd quarter

Revenues 616 671 -55 -8,1 1.739 2.060 -321 -15,6EBITDA 13 -26 39 - -37 5 -42 -Operating result -54 -85 31 -37,5 -146 -83 -63 75,5

Revenues 604 584 20 3,4 1.796 1.710 86 5,0EBITDA 86 70 16 21,2 230 202 28 13,7Operating result 56 42 14 31,6 143 118 25 21,0

Revenues 199 183 16 8,7 604 532 72 13,5EBITDA 37 15 22 > 100 102 48 54 > 100Operating result 27 5 22 > 100 70 19 51 > 100

Revenues 294 279 15 5,4 889 890 -1 -0,1EBITDA 22 26 -4 -15,6 78 90 -12 -13,5Operating result 10 15 -5 -35,5 46 62 -16 -26,0

Revenues 1.713 1.717 -4 -0,2 5.028 5.192 -164 -3,2EBITDA 158 85 73 87,4 373 345 28 8,2Operating result 39 -23 62 - 113 116 -3 -2,5



Segment Sugar: Development 9M 2019/20

Revenues: Decline slowed during 3rd quarter. Reduction driven by lower sales revenues and significantly lower sales volumes following below average 2018 and 2019 harvests caused by dry weather.

Operating result: Expected operating loss caused by EU sugar market price level not covering costs and drought driven lower harvests 2018 and 2019 leading to sharply lower sales volumes, especially exports. Result disburdened by inventory write-down already booked in financial year 2018/19.

(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %

Revenues 616 671 -8,1 1.739 2.060 -15,6EBITDA 13 -26 - -37 5 -

EBITDA margin 2,2% -4,0% -2,1% 0,2%Depreciation -67 -59 14,1 -109 -88 24,9Operating result -54 -85 -37,5 -146 -83 75,5

Operating margin -8,7% -12,8% -8,4% -4,0%




Segment Special Products: Development 9M 2019/20

Revenues: Revenue increase due to higher volumes, especially for starch and sweetener products, growth primarily driven by increased ethanol sales revenues.

Operating result: Accordingly, operating result improvement. Rising raw materials and fixed costs were more than compensated by the sustained positive revenue development.

(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %

Revenues 604 584 3,4 1.796 1.710 5,0EBITDA 86 70 21,2 230 202 13,7

EBITDA margin 14,1% 12,0% 12,8% 11,8%Depreciation -30 -28 5,4 -87 -84 3,6Operating result 56 42 31,6 143 118 21,0

Operating margin 9,2% 7,3% 7,9% 6,9%




Segment CropEnergies: Development 9M 2019/20

Revenues: Revenue increase due to significantly higher ethanol salesrevenues.

Operating result: Earnings more than tripled in first nine months. Higher net raw material costs were more than offset by significantly better ethanol sales revenues.

(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %

Revenues 199 183 8,7 604 532 13,5EBITDA 37 15 > 100 102 48 > 100

EBITDA margin 18,6% 8,0% 16,9% 9,1%Depreciation -10 -10 6,1 -32 -29 7,8Operating result 27 5 > 100 70 19 > 100





Segment Fruit: Development 9M 2019/20

Revenues: Fruit preparations division’s revenues slightly increased, with slightly higher sales volumes. Fruit juice concentrates division’s significantly higher volumes were not enough to completely offset declining sales revenues.

Operating result: Significant earnings reduction. Slightly higher sales volumes were not enough to offset higher costs in the fruit preparations division. The fruit juice concentrates division’s declining sales revenues could not be fully compensated by higher volumes and lower raw material costs.

(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %

Revenues 294 279 5,4 889 890 -0,1EBITDA 22 26 -15,6 78 90 -13,5

EBITDA margin 7,5% 9,4% 8,7% 10,1%Depreciation -12 -11 11,8 -32 -28 14,5Operating result 10 15 -35,5 46 62 -26,0





Income statement (I)

Result from companies consolidated at equity: Sugar segment -69 (2) mn € mainly related to its share in ED&F Man, Studen Group and

the joint-venture distributor Maxi. Special products segment posted 11 (14) mn € for its share of earnings from Hungrana Group's starch and bioethanol businesses.

Financial result: Financial result -31 (-22) mn €; comprises net interest result of -19 (-16) mn € and

other financial result of -12 (-6) mn €.

(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %

Revenues 1.713 1.717 -0,2 5.028 5.192 -3,2Operating result 39 -23 - 113 116 -2,5Restructuring costs/special items -7 8 - -12 7 0,0Result from companies consolidated at equity -60 5 - -58 16 -Result from operations -28 -10 > 100 43 139 -69,1Financial result -14 -4 > 100,0 -31 -22 40,9Earnings before income taxes -42 -14 > 100 12 117 -89,9




Income statement (II)

Taxes on income: -47 (-81) mn €. Especially effect of losses in segment sugar for which there was no

recognition of deferred taxes. Minority interests:

Mainly attributable to the co-owners of AGRANA Group and CropEnergies Group Earnings per share (EPS):

-0.42 € (-0.01 €)

(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %

Earnings before income taxes -42 -14 > 100 12 117 -89,9Taxes on income -14 -14 1,5 -47 -81 -41,7Net earnings for the year -56 -28 98,9 -35 36 -of which attributable to Südzucker AG shareholders -73 -31 > 100 -87 -3 > 100of which attributable to hybrid capital 3 3 -3,0 10 10 -1,0of which attributable to minority interests 14 0 - 42 29 44,1

Earnings per share (€) -0,35 -0,15 > 100 -0,42 -0,01 > 100




(mn €) 2019/20 2018/19 +/- in % 2019/20 2018/19 +/- in %Cash flow 107 66 62,1 283 293 -3,5Increase (-)/ Decrease (+) in working capital -160 4 - -41 195 -Investments in f ixed assetsSugar segment -24 -40 -40,6 -73 -103 -29,3Special products segment -34 -30 11,6 -101 -109 -6,6CropEnergies segment -7 -4 81,6 -20 -9 > 100Fruit segment -9 -13 -27,0 -30 -33 -9,6Total investments in f ixed assets -74 -87 -15,3 -224 -254 -11,7Investments in f inancial assets/acquisitions -4 -6 -37,3 -10 -15 -32,0Total investments* -78 -93 -16,1 -234 -269 -12,8

Dividends paid -6 -6 -3,5 -97 -156 -37,7

3rd quarter 1st-3r d quarter

Cash flow statement

* incl. investments in intangible assets

Cash flow: Cash flow at 283 (293) mn € and came in at 5.6 (5.6) % of revenues.

Working Capital: Cash outflow from the increase in working capital of – 41 mn € – following cash inflow of 195 mn € in the

previous period – resulted primarily from increase in inventory book values in sugar, special products and fruit segments along with higher trade receivables. Development partly offset by concurrent increase in liabilities to beet growers.

Investments in fixed assets: Continuation of already communicated projects



Balance sheet

Non-current assets: Decrease of 740 mn € mainly due to goodwill impairment in segment sugar in 2018/19

Net financial debt: Increase by 578 mn € against previous year. Increase by 230 mn € against 28 February 2019. First-time

application of IFRS 16 (leases) on 1 March 2019 resulted in recognition of leasing liabilities of 136 mn € in current and non-current financial liabilities.

(mn €) 30 November 2019 30 November 2018 +/- in %

AssetsNon-current assets 4.496 5.236 -14,1Current assets 3.907 3.716 5,1Total assets 8.403 8.952 -6,1

Liabil ities and shareholders' equityShareholders' equity 3.764 4.911 -23,4Non-current liabilities 2.781 2.314 20,2Current liabilities 1.858 1.727 7,5Total liabil ities and shareholders' equity 8.403 8.952 -6,1

Net financial debt 1.359 781 74,1Equity ratio 44,8% 54,9%Net financial debt in percent of equity (gearing) 36,1% 15,9%



Outlook 2019/20 (I): Revenues and Operating result

Sugar

Revenues (€)

2018/19Operating result (€)

2019/20e

Special Products

CropEnergies

Fruit

Group

2018/19 2019/20e

2.6 bn -239 mn -200 to -260 mn

2.3 bn

693 mn

1.2 bn

6.8 bn

~810 mn

6.7 to 7.0 bn

156 mn

33 mn

77 mn

27 mn

~100 mn

70 to 130 mn



Outlook 2019/20 (II): Other key figures

EBITDA

2018/19 2019/20e

Depreciation*

InvestmentsFixed Assets

Net Financial Debt

353 mn € 430 to 490 mn €

326 mn € > prev. year

379 mn € < prev. year

1,129 mn € > prev. year

* 2019/20 incl. adjustment for application of IFRS 16



Outlook 2019/20 (III): Other key figures

RoCE

2018/19 2019/20e

Cash flow/ Revenues

Equity ratio

0.4 % up to 2 %

5.6 % > 5 %

49.1 % < prev. year



Summary

Expectation of at least two difficult transition years realized Expectation H2 with earnings improvement against H2 2018/19 in light of

price increase since October 2019 FY 2019/20e: Operating result -200 to -260 mn € (prev. year: -239 mn €)

FY 2019/20e: Revenues on previous year‘s level andsignificant earnings decrease (operating result prev. year: 77 mn €)

Increase in production and sales volumes in all divisions FY 2019/20e: Significant increase in operating result (prev. year: 156 mn €);

still high cash flow quality

Continuous higher ethanol price level leads to significant earnings increase FY 2019/20e: Operating result of approximately 100 mn € (prev. year: 33 mn €)

Well diversified portfolio High cash flow quality and solid financial key figures, despite temporary

burden in segment sugar Foresighted financing and strong balance sheet ratios

Sugar

Special Products

CropEnergies

Fruit

Group



-102

455353

~600

≤350

-150

-50

50

150

250

350

450

550

650

750

850

Sugar

Non-Sugar

Group

Capex

Group outlook midterm EBITDA and capex(in mn €)

EBITDA 2021/22eEBITDA 2018/19 Ø Capex19/20e - 21/22e



(mn €) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20e

Revenues 5.718 6.161 6.992 7.879 7.533 6.778 6.387 6.476 6.983 6.754 6.7-7.0 bnEBITDA 645 775 1.015 1.246 889 453 518 709 758 353 430-490

EBITDA-Margin 11,3% 12,6% 14,5% 15,8% 11,8% 6,7% 8,1% 10,9% 10,8% 5,2%Operating Result 403 521 751 972 622 181 241 426 445 27 70-130

Operating Margin 7,0% 8,5% 10,7% 12,3% 8,3% 2,7% 3,8% 6,6% 6,4% 0,4%Income from operations (EBIT) 392 513 759 955 955 955 554 277 467 -761Earnings before income taxes (EBT) 348 443 660 866 866 866 491 227 426 -784Net earnings 276 346 515 734 734 734 387 181 312 -805

thereof to SZ AG shareholders 200 252 377 592 592 592 280 109 205 -844

Market capitalization 3.230 3.768 4.117 6.850 4.114 2.782 3.834 4.921 3.014 2.625Closing price on February 28/29 17,06 19,90 21,75 33,55 20,15 13,63 13,88 24,10 14,76 12,86Earnings per share (€) 1,06 1,33 1,99 3,08 1,37 0,10 0,53 1,05 1,00 -4,14Dividend per share (€) 0,45 0,55 0,70 0,90 0,50 0,25 0,30 0,45 0,45 0,20

Cash flow 553 606 823 996 697 389 480 634 693 377Investments total 233 251 286 521 399 387 371 493 793 394 < prev. year

Capital Employed 5.374 5.314 5.707 5.950 5.873 5.877 5.791 6.012 6.650 6.072 > prev. yearRoCE 7,5% 9,8% 13,2% 16,3% 10,6% 3,1% 4,2% 7,1% 6,7% 0,4% up to 2 %

Total Assets 7.398 7.260 8.289 8.806 8.663 8.474 8.133 8.736 9.334 8.188Equity 3.443 3.687 3.970 4.731 4.625 4.461 4.473 4.888 5.024 4.018Equity Ratio 46,5% 50,8% 47,9% 53,7% 53,4% 52,6% 55,0% 56,0% 53,8% 49,1% < prev. yearNet Financial Debt (NFD) 1.065 854 791 464 536 593 555 413 843 1.129 > prev. yearGearing (NFD/Equity) 30,9% 23,2% 19,9% 9,8% 11,6% 13,3% 12,4% 8,4% 16,8% 28,1%NFD/Cash flow 1,9x 1,4x 1,0x 0,5x 0,8x 1,5x 1,2x 0,7x 1,2x 3,0x

Long-term development (I): Group

* Investments in Fixed Assets

*



Long-term development (II): SegmentsSugar segment

(mn €) 2014/15 2015/16 2016/17 2017/18 2018/19Revenues 3.228 2.855 2.776 3.017 2.588EBITDA 133 48 201 278 -102EBITDA-Margin 4,1% 1,7% 7,3% 9,2% -3,9%Depreciation -126 -127 -129 -139 -137Operating Result 7 -79 72 139 -239Operating Margin 0,2% -2,7% 2,6% 4,6% -9,2%Restructuring and special items -7 4 -12 24 -769Income from operations (EBIT) -5 -43 67 135 -1003

Investments 186 181 271 173 147Fixed Assets 186 181 153 171 145Financial Assets 0 0 118 2 2

Capital Employed 3.199 3.041 3.169 3.299 2.653RoCE 0,2% -2,6% 2,3% 4,2% -9,0%

Special Products segment

(mn €) 2014/15 2015/16 2016/17 2017/18 2018/19Revenues 1.724 1.791 1.819 1.997 2.294EBITDA 192 246 263 255 268EBITDA-Margin 11,2% 13,7% 14,4% 12,8% 11,7%Depreciation -72 -75 -79 -97 -112Operating Result 120 171 184 158 156Operating Margin 7,0% 9,5% 10,1% 7,9% 6,8%Restructuring and special items -3 -2 -4 -3 -51Income from operations (EBIT) 144 192 208 185 122


Capital Employed 1.377 1.436 1.499 2.055 2.133RoCE 8,7% 11,9% 12,2% 7,7% 7,3%

CropEnergies segment

(mn €) 2014/15 2015/16 2016/17 2017/18 2018/19Revenues 764 658 726 808 693EBITDA 25 122 135 111 72EBITDA-Margin 3,3% 18,5% 18,6% 13,7% 10,4%Depreciation -36 -35 -37 -39 -39Operating Result -11 87 98 72 33Operating Margin -1,5% 13,2% 13,4% 8,9% 4,7%Restructuring and special items -28 -18 -4 -1 10Income from operations (EBIT) -39 69 94 71 43


Capital Employed 518 490 479 452 456RoCE -2,2% 17,7% 20,4% 15,9% 7,2%

Fruit segment

(mn €) 2014/15 2015/16 2016/17 2017/18 2018/19Revenues 1.062 1.083 1.155 1.161 1.179EBITDA 103 102 110 114 115EBITDA-Margin 9,8% 9,4% 9,5% 9,7% 9,8%Depreciation -38 -40 -38 -38 -38Operating Result 65 62 72 76 77Operating Margin 6,1% 5,7% 6,2% 6,5% 6,6%Restructuring and special items -6 -3 0 0 0Income from operations (EBIT) 59 59 72 76 77


Capital Employed 782 823 866 844 830RoCE 8,4% 7,5% 8,3% 9,0% 9,3%



Maturity profile of main financial liabilities(asof30 November 2019)

Hybrid Bond 2005/perpetual, 700 mn € Issuer call right since 30 June 2015 at the earliest. Pursuant to § 6 (5) and (6) of conditions of issue

the exercise of the call right is subject to having issued, within the twelve months preceding the redemption becoming effective, replacement capital (parity and/or junior securities and/or shares) against issue proceeds at least equal to the amounts payable upon redemption.

Perpetual

Commercial Paper-Program, permanent, 600 mn € Drawn lines: 240 mn €

Bullet loans, 220 mn €

1.25 % Bond 2016/2023, 300 mn €

AGRANA promissory notes, 200 mn €

1.00 % Bond 2017/2025, 500 mn €

Syndicated loans, 1.050 mn € Drawn lines: 45 mn €2021/22/24

Nov. 2022/25/26

Nov 2023

2024/26/29

Nov 2025

Perpetual

Perpetual



Hybrid bond: 2018/19 cash flow covenant

Options for hybrid bond 2005 (depending on continuous financial planning): Since 30 June 2015: quarterly variable interest payment, 3M Euribor plus 3.10 % p.a. Period from 31 Dec 2019 to 31 March 2020 (excl.), rate of remuneration fixed at 2.71 % p.a. Since 30 June 2015, bond can be called and redeemed on quarterly basis at nominal value

(according to § 6 (5) & (6) of the terms and conditions) Precondition to use issuer call right is replacement through new hybrid or equity capital

within 12 months A bond repurchase – also partially – is possible at any time Still preferred option: No call of hybrid bond

(mn €) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20e

Revenues 5,718 6,161 6,992 7,879 7,533 6,778 6,387 6,476 6,983 6,754 6.7-7.0 bn

Cash flow / Revenues 9.7% 9.8% 11.8% 12.6% 9,3% 5.7% 7.5% 9.8% 9,9% 5.6% > 5 %



Liquidity profile end of period(mn €) Q3 2019/20 Q2 2019/20 Q1 2019/20 Q4 2018/19 Q3 2018/19

Net financial debt -1.359 -1.226 -1.240 -1.129 -781

Cash & Cash equivalents / securities 511 557 552 499 612

Gross financial debt -1.870 -1.783 -1.791 -1.627 -1.393

Long-term financial debt -1.344 -1.310 -1.121 -1.126 -1.138

Short-term financial debt -402 -344 -539 -501 -254

Leasing -124 -130 0 0 0

Bank credit l ines 752 751 811 849 849undrawn 323 305 298 351 301

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

Syndicated loan Agrana 450 450 450 450 450undrawn 405 385 340 375 430

Commercial paper program 600 600 600 600 600undrawn 360 470 370 370 600

Bank credit l ines (undrawn) 323 305 298 351 301+ Cash & cash equivalents / securities 511 557 552 499 612+ Syndicated loan (undrawn) 1.005 985 940 975 1.030+ Commercial paper (undrawn) 360 470 370 370 600= Total l iquidity reserves 2.200 2.317 2.160 2.195 2.543



Group balance sheet

(mn €)Intangible assets 1.001 12,2% 1.659 17,8%Fixed assets 2.951 36,0% 2.991 32,0%Shares in companies consolidated at equity 390 4,8% 370 4,0%Other investments and loans 23 0,3% 23 0,2%Securities 19 0,2% 19 0,2%Receivables and other assets 13 0,2% 12 0,1%Deferred tax assets 75 0,9% 80 0,9%Non-current assets 4.471 54,6% 5.153 55,2%

Inventories 1.977 24,1% 2.119 22,7%Trade receivables and other assets 1.230 15,0% 1.319 14,1%Current tax receivables 31 0,4% 33 0,4%Securities 126 1,5% 126 1,3%Cash and cash equivalents 354 4,3% 585 6,3%Current assets 3.717 45,4% 4.181 44,8%

Total assets 8.188 100,0% 9.334 100,0%

28.02.2019 28.02.2018 (mn €)Equity attributable to shareholders of SZ AG 2.476 30,2% 3.456 37,0%Hybrid capital 654 8,0% 654 7,0%Other minority interest 889 10,9% 915 9,8%Shareholder's equity 4.018 49,1% 5.024 53,8%

Provisions for pensions and similar obligations 832 10,2% 781 8,4%Other provisions 246 3,0% 125 1,3%Non-current financial liabilities 1.126 13,8% 1.117 12,0%Other liabilities 14 0,2% 16 0,2%Tax liabilities 23 0,3% 49 0,5%Deferred tax liabilities 159 1,9% 164 1,8%Non-current liabilities 2.398 29,3% 2.251 24,1%

Other provisions 148 1,8% 250 2,7%Current financial liabilities 501 6,1% 456 4,9%Trade payables and other liabilities 1.104 13,5% 1.329 14,2%Current tax liabilities 18 0,2% 25 0,3%Current liabilities 1.771 21,6% 2.060 22,1%

Total liabilities and shareholders' equity 8.188 100,0% 9.334 100,0%

28.02.2019 28.02.2018



Revenues by region 2018/19Germany

(23 %)

EU 28(52 %)

Rest of world(25 %)

6,754 mn €

Revenues share financial year 2018/19 by region in %:EU 28: EU-members (excl. Germany, incl. Great Britain)Rest of the world: Europe (outside EU), America, Africa, Asia, Oceania



‐15

‐10

‐5

0

5

10

15

0

50

100

150

200

250

Surplus/Defict (right scale) Total Production (left scale) Consumption (left scale)

World sugar market – unchanged sustainable growth*

* Source: F.O. Licht


Global sugar market: Supply and demand

Egypt-1.35

Brazil+22.22

Canada-1.09

USA-2.96

Mexico+1.27

Guatemala+2.00

Colombia+0.67

Surplus areas/countries

Deficit areas/countries

Morocco-0.71

Swaziland+0.70

Nigeria-1.73

Australia+3.63

Sudan-1.16

Japan-1.22

S. Korea-1.55

Algeria-1.93

Syria-0.58

Saudi Arabia-1.35

Thailand+10.58

Bangladesh-2.40

Malaysia-1.86

Indonesia-5.00

China-5.00

Israel-0.64

Only countries with deficits/surpluses above 500k tonnes are marked (2019/20e)

Taiwan-0.62

India+3.50

Nicaragua+0.51

Kuba+1.00

Spain-1.06

France+2.65

U.K.-0.75

Germany+1.09

Poland+0.63

Italy-1.70

Kenia-0.63

Source: F.O. Licht



EU sugar balance

mn t 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 Ø 10years 19/20e

Production EU 18.2 16.2 19.4 18.1 17.6 20.3 15.7 17.6 21.9 18.2 18.3 17.9

• from beet 17.5 15.4 18.7 17.4 16.8 19.5 14.9 16.8 21.3 17.6 17.6 17.3

• from maize 0.7 0.7 0.7 0.7 0.7 0.8 0.8 0.8 0.6 0.6 0.7 0.6

Import 2.5 3.6 3.5 3.7 3.2 2.8 2.9 2.5 1.3 1.9 2.8 2.0

• Import whitesugar 0.6 1.1 0.8 1.0 0.8 0.7 0.7 0.8 0.3 0.6 0.7 n.a.

• EU refining ofimported rawsugar

1.9 2.5 2.7 2.7 2.4 2.1 2.2 1.7 1.0 1.3 2.1 n.a.

Export 2.2 0.8 2.1 1.4 1.4 1.5 1.4 1.4 3.4 1.7 1.7 1.2

Consumption 18.9 19.4 19.6 19.6 20.0 20.2 19.3 18.5 19.6 19.0 19.4 19.0

Ending stock 1.6 1.2 2.4 3.2 2.6 4.0 1.9 2.2 2.5 1.8 2.3 1.6

Source: EU-Commission



Ranking global sugar market (I)

Top-producer 2019/20ein mn t

2019/20ein %

∅ 10 years in mn t Top-consumer 2019/20e

in mn t2019/20e

in %∅ 10 years

in mn t

Brazil 34.5 18.4 37.1 India 28.8 15.3 26.4

India 32.0 17.1 29.2 EU 18.5 9.9 18.9

EU 18.8 10.0 18.0 China 16.8 9.0 16.3

Thailand 13.0 7.0 11.7 Brazil 11.8 6.3 12.0

China 11.5 6.1 11.8 USA 11.1 5.9 10.9

USA 8.2 4.4 8.0 Indonesia 7.9 4.2 6.8

Russia 6.4 3.4 5.6 Pakistan 6.6 3.5 5.4

Mexico 6.3 3.4 6.2 Russia 6.4 3.4 6.1

Pakistan 6.0 3.2 5.9 Mexico 5.0 2.7 4.7

Australia 4.9 2.6 4.6 Egypt 4.2 2.2 3.6

Others 45.5 24.3 42.8 Others 70.5 37.6 66.3

Total 187.0 100 180.8 Total 187.7 100 177.4

Source: F.O. Licht



Ranking global sugar market (II)

Top-net-exporter 2019/20ein mn t

2019/20ein %

∅ 10 years in mn t Top-net-importer 2019/20e

in mn t2019/20e

in %∅ 10 years

in mn t

Brazil 22.2 44.8 25.1 China 5.0 10.4 4.4

Thailand 10.6 21.4 8.1 Indonesia 5.0 10.4 4.2

Australia 3.6 7.3 3.2 USA 3.0 6.3 2.9

India 3.5 7.1 1.6 Bangladesh 2.4 5.0 2.1

Guatemala 2.0 4.0 1.9 Algeria 1.9 4.0 1.5

Mexico 1.3 2.6 1.4 Malaysia 1.9 4.0 1.7

Cuba 1.0 2.0 0.9 Nigeria 1.7 3.5 1.6

Swaziland 0.7 1.4 0.7 Korea, South 1.5 3.1 1.5

Colombia 0.7 1.4 0.6 Saudi Arabia 1.4 2.9 1.2

EU 0.4 0.8 -1.2 Egypt 1.4 2.9 1.3

Others 3.5 7.1 - Others 22.8 47.5 -

Total 49.5 100 - Total 48.0 100 -

Duty free access into EUSource: F.O. Licht



Sugar segment: Production and Distribution*

* Display financial year2018/19

Distribution activitiesBeet sugar factoriesSugar refineries

Poland

France

Germany

Spain

Portugal

Greece

Italy

Autstria

CzechRepublic

RomaniaHungary

SlovakiaMoldova

Bulgaria

Ireland

Great Britain

Bosnia/Herze-govina

Nether-lands

Belgium

Israel



Participation in ED&F Man offers a global footprint

Sugar only

Liquid Products onlyCoffee only

Multiple businesses

Participation ~ 35 % Long standing successful history (founded 1783) Truely global footprint (~ 7,000 employees

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

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

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

Global agribusiness with leadership positions in the merchanting of sugar, coffee, molasses, animal feed and special crops

Supply chain manager, providing sourcing, processing, logistics, shipping and marketing of agricultural products, including transportation and delivery of products to industrial and commercial clients



Segment Sugar: Campaign09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20e

Beet growers 46,000 44,600 43,000 42,600 42,100 41,300 40,300 39,000 37,900 36,700 n.a.

Beet acreage 401,000 388,000 412,000 422,000 396,000 405,000 350,000 385,000 445,000 434,000 392,000

Sugar factories (incl. refineries) 32 32 32 32 32 32 31 31** 31** 31** 30**

Beet processing* 28.4 26.1 31.3 28.7 27.2 34.0 23.7 28.6 36.0 29.3 28.5

Campaignduration 116 103 123 112 102 127 89 107 133 115 112

Sugar production* 4.8 4.2 5.4 4.9 4.7 5.3 4.1 4.7 5.9 4.7 4.5

thereof from beets* 4.4 3.9 4.9 4.5 4.3 5.0 3.8 4.4 5.7 4.6 4.3

thereof raw sugar raffination*

0.4 0.3 0.5 0.4 0.5 0.3 0.4 0.2 0.2 0.1 0.2

*in mn t**incl. 2 refineries



Price development for raw and white sugar (ICE US, LIFFE)

100

200

300

400

500

600

700

Jan-

14M

ar-1

4M

ay-1

4Ju

l-14

Sep-

14N

ov-1

4Ja

n-15

Mar

-15

May

-15

Jul-

15Se

p-15

Nov

-15

Jan-

16M

ar-1

6M

ay-1

6Ju

l-16

Sep-

16N

ov-1

6Ja

n-17

Mar

-17

May

-17

Jul-

17Se

p-17

Nov

-17

Jan-

18M

ar-1

8M

ay-1

8Ju

l-18

Sep-

18N

ov-1

8Ja

n-19

Mar

-19

May

-19

Jul-

19Se

p-19

Nov

-19

Jan-

20

Quo

tatio

n fo

r sug

ar in

€ /

ton

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

Raw sugar contract No. 11 ICE US (Future contract switching upon expiry)

100

200

300

400

500

600

700

Feb-

11

Feb-

12

Feb-

13

Feb-

14

Feb-

15

Feb-

16

Feb-

17

Feb-

18

Feb-

19

Feb-

20

Quo

tatio

n fo

r sug

ar in

€ /

ton



Price development wheat and maize (Euronext)

100

120

140

160

180

200

220

240

260

280

300

Jan-

14M

ar-1

4M

ay-1

4Ju

l-14

Sep-

14N

ov-1

4Ja

n-15

Mar

-15

May

-15

Jul-

15Se

p-15

Nov

-15

Jan-

16M

ar-1

6M

ay-1

6Ju

l-16

Sep-

16N

ov-1

6Ja

n-17

Mar

-17

May

-17

Jul-

17Se

p-17

Nov

-17

Jan-

18M

ar-1

8M

ay-1

8Ju

l-18

Sep-

18N

ov-1

8Ja

n-19

Mar

-19

May

-19

Jul-

19Se

p-19

Nov

-19

Jan-

20

€ /

ton

Wheat price (Future contract switching upon expiry)Price for maize (Future contract switching upon expiry)

100

120

140

160

180

200

220

240

260

280

300

Feb-

11

Feb-

12

Feb-

13

Feb-

14

Feb-

15

Feb-

16

Feb-

17

Feb-

18

Feb-

19

Feb-

20

€ /

ton



This presentation contains forward looking statements. The statements are based on current assumptions and estimates made by the executive board and information currently available to its members. The forward looking statements are not to be viewed as guarantees of the future developments and results presented therein. Future developments and results are in fact dependent on a variety of factors and are subject to various risks and imponderables. They are based on assumptions that could in fact prove to be invalid. The risk management report in the 2018/19 annual report on pages 84 to 96 presents an overview of the risks. We assume no obligation to update the forward-looking statements made in this presentation.

This presentation includes percentage and number rounding. Typing and printing errors reserved.

Written and visual value statements are standardized as follows:

Disclaimer

± 1%stable

/± 4-10%moderate

/> ± 10%significant

/± 1-4%slight



Contact

Nikolai BaltruschatHead of Investor RelationsTel.: +49 (621) 421 – [email protected]

Bernhard JuretzekManager Investor RelationsTel.: +49 (621) 421 – [email protected]

Sandra KochnerAssistantTel.: +49 (621) 421 – [email protected]

Südzucker AGMaximilianstrasse 1068165 Mannheim, [email protected]

Financial calender

22 April 2020Preliminary figures financial year 2019/20

14 May 2020Press and analysts‘ conference fiscal 2019/20

9 July 2020Q1 – Quarterly Statement 2020/21

16 July 2020Annual general meeting for fiscal 2019/20

8 October 2020Q2 – 1st half year report 2020/21

14 January 2021Q3 – Quarterly Statement 2020/21

Investor Relations

investor roadshow - südzucker · 3/3/2020 · successful growth strategy in specialty starches...

Documents