südzucker group capital market forum 2014 - startseite€¦ · 26/11/2014 · südzucker group...
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Südzucker Group, page 1
Südzucker Group Capital Market Forum 2014 Mannheim, 26 November 2014
Thomas Kölbl (CFO)
Südzucker Group, page 2
FINANCIAL TRANSPARENCY
This presentation contains forward looking statements. The statements are based on current assumptions and estimates made by the executive board and information currently available to its members. The forward looking statements are not to be viewed as guarantees of the future developments and results presented therein. Future developments and results are in fact dependent on a variety of factors and are subject to various risks and imponderables. They are based on assumptions that could in fact prove to be invalid. The risk management report in the 2013/14 annual report on pages 99 to 110 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. IFRS 11 application as of financial year 2013/14. Written and visual value statements are standardized as follows:
Disclaimer
± 1% stable
/ ± 4-10% moderate
/ >/< 10% significant
/ ± 1-4% slight
Südzucker Group, page 3
FINANCIAL TRANSPARENCY
Südzucker Group at a glance
Revenues 7,533 bn € (2013/14) Global operating food group with
long-standing corporate history:
1837: Foundation of first sugar company
1926: Fusion to Süddeutsche Zucker-AG
Production facilities: ~ 100
Employees: ~ 18.200
Beneficiary of mega trends within food, animal feed and energy area
Stock exchange listing in Germany (MDAX)
Market capitalisation: ~ 2.6 bn €
Free float ~ 38%
Trading volume: ~ 1.8 mn shares/day
Special Products
(23%)
Sugar (52%)
Fruit (15%)
CropEnergies (10%)
Südzucker Group, page 4
FINANCIAL TRANSPARENCY
Südzucker products share your everyday life …
Grocery / Ingredients Other appliances
Südzucker Group, page 5
FINANCIAL TRANSPARENCY
Strong market position in all business areas
# 1 in Europe
# 1 globally for Isomalt and Oligofructose
Functional Food
# 1 worldwide
Fruit preparations
# 1 in Europe
Fruit juice concentrates
Bioethanol
Portion packs
# 1 in Europe Sugar
# 1 in Europe (private label)
Frozen pizza
One of the leading producers in Europe
Specialty starches and Isoglucose
One of the leading producers in
Europe
Südzucker Group, page 6
FINANCIAL TRANSPARENCY
Business areas benefit long-term from megatrends…
200
400
600
800
mn t
Source: USDA
global animal feed production
11,000
51,000
91,000
131,000
171,000
211,000
2,000
4,000
6,000
8,000
tmn
Sources: United Nations, F.O. Licht
population growth worldwide
sugar consumption worldwide
,0
2,000
4,000
6,000
8,000
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
USD / barrelmn
barrel / day
Source: BP
oil consumption
crude oil price
Südzucker Group, page 7
FINANCIAL TRANSPARENCY
… in an environment of volatility and cyclicity
0
100
200
300
400
500
600
700
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
€/t
White sugar price
50
100
150
200
250
300
350
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
€ / t
Wheat price
400
450
500
550
600
650
700
750
800
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
€ / m³
Ethanol price
50
100
150
200
250
300
350
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
€ / t
Maize price
Südzucker Group, page 8
FINANCIAL TRANSPARENCY
Segment Sugar: Overview
Financial Year 2013/14:
Revenues: ~3.9 bn €
Employees: 8,050
Factories: 32
Südzucker Group, page 9
FINANCIAL TRANSPARENCY
EU sugar policy past 2017(I)
Sugar and isoglucose quota
Quota sugar: Minimum beet price
Contractual obligation between industry and farmer
Exports limited to about 1.4 mn t p.a.
Elimination of sugar and isoglucose quota
No minimum beet price
Contractual obligation between industry and farmer
No export restrictions
New market framework 1 October 2017
EU sugar policy until 30 September 2017
Border Protection: unchanged
Import duty 419 €/t (white sugar) resp. 339 €/t (raw sugar) from non-preferential countries
Preferential agreements with LDC-/ACP- and Andean countries: unchanged
Südzucker Group, page 10
FINANCIAL TRANSPARENCY
EU sugar policy past 2017(II)
Südzucker well positioned as largest producer with focus on best growing regions
Only limited effort needed to increase and extend current production level (with high entry barriers at the same time)
Utilization of current European logistic network to optimize sugar distribution and development of new markets
Investment program to exploit future market potential (e.g. starch)
Strengthening and extension of cooperations (e.g. ED&F Man, LDC/ACP producer)
Stronger competition, also from Isoglucose
Further EU free trade agreements with third party countries
Raw material security in increasingly more volatile market environment
Volatility in world market price and volume with even stronger influence on EU market
Challenges Opportunities
Südzucker Group, page 11
FINANCIAL TRANSPARENCY
Segment Sugar: Europe
European market leader (24%)
Pan-European sales and logistics strategy
Sustainable production in highest beet-yield areas in Europe
Cost savings throughout entire value chain
Keeping and strengthening competitiveness
Exploiting growth opportunities outside Europe
Exports from EU
Acquisitions
France
Germany Belgium
Poland
Austria
Romania
Moldova
7
Hungary
Czech Republic
Slovakia
Bosnia-Hercegovina
Italy
Bulgaria
Greece
Spain
Portugal
Great Britain
Distribution activities
Beet sugar factories
Sugar refineries
Südzucker Group, page 12
FINANCIAL TRANSPARENCY
75
100
125
150
175
200
mn t
Source: F.O. Licht
Traditional London-based agricultural trading company (Foundation 1783)
Revenues: 9 bn USD; > 3,400 employees in 60 countries
Sugar operations:
Approx. 9 mn t global sugar trading volume; second largest sugar trader with significant presence in
Central and South America, Far East, South East Asia and Africa
Participations in sugar production and refining capacities amongst others in Russia, the Ukraine, Mexico,
Chile and Venezuela
Sugar operations Molasses Multiple businesses
Coffee trading
Sugar consumption worldwide
Participation in ED&F Man offers a global footprint
Südzucker Group, page 13
FINANCIAL TRANSPARENCY
Influence of low world market price via
imports
Still high EU quota sugar inventories through
EU commission measures (+1.2 mn t)
Tougher competition for contracts.
Decreasing share of annual contracts, higher
share of short term contracts and purchase
from spot markets
Significantly lower EU sugar pricing
Increasingly more difficult market
environment
Full effect in FY 2015/16
Expectation of mid-term price increase
Segment Sugar: current market environment EU
EU quota sugar inventories (mn t)
Price reporting EU-KOM (€/t)
500
550
600
650
700
750
Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14
3.0
2.2
1.6
1.0 1.1
1.6
2.52.1
Sept.'07 Sept.'08 Sept.'09 Sept.'10 Sept.'11 Sept.'12 Sept.'13 Sept.'14e
Südzucker Group, page 14
FINANCIAL TRANSPARENCY
Segment Special Products: Overview
Financial Year 2013/14:
Revenues: ~1.7 bn €
Employees: 4,335
Factories: 21
Freiberger
BENEO
PortionPack
Starch
Revenue split by divisions
Südzucker Group, page 15
FINANCIAL TRANSPARENCY
Segment Special Products:
Sales offices Subsidiaries
Production sites
Functional Food ingredients from natural raw materials (chicory root, beet sugar, rice)
Revenues: > 400 mn €
World market leader in core products
5 facilities in EU and Chile; global distribution
Numerous food-physiological benefits like:
Sugar-, fat- and calory-reduction
Dietary fibre enrichment, prebiotic
„Prolonged energy“
Lactose- and gluten free
Südzucker Group, page 16
FINANCIAL TRANSPARENCY
Segment Special Products:
Berlin
Osterweddingen
Westhoughton
Muggensturm
Oberhofen Production sites
Production of 2.5 mn packages daily
Frozen / chilled pizza
Frozen pasta
Frozen baguettes
Revenues: > 500 mn €
5 production sites in Germany, Austria, Great Britain
Private labels for nearly all leading food retailers in Europe
Exploit growth opportunities outside Europe (Distribution center USA)
Südzucker Group, page 17
FINANCIAL TRANSPARENCY
Segment Special Products:
Starch and specialty starch products for
Food industry
Paper- and paper processing industry
Textile industry
Construction industry
Pharma- and cosmetics industry
Revenues: ~ 700 mn €
Bioethanol production in Austria and Hungary
Commissioning of wheat-starch plant at bioethanol site Austria (Investment: 70 mn €)
New wheat starch factory at multi-site Zeitz (Investment: 125 mn €)
Production starch
Gmünd (A)
Pischelsdorf (A) Aschach (A)
Szabadegyhaza (HU)
Tandarei (RO)
Production bioethanol
Zeitz (DE, new plant)
Südzucker Group, page 18
FINANCIAL TRANSPARENCY
Segment Special Products:
Landgraaf (NL)
Barcelona
Prague
Production sites
Herentals (B)
Oud-Beijerland (NL)
Nuremberg
Telford
Krakow
Development, production and marketing of portion packs
Food (sugar, spreads, bakery products, confectionery etc.)
Nonfood (shower gel, shampoo, refreshing tissues etc.)
Revenues: ~ 150 mn €
Major markets
Gastronomy / large consumers (hotels, caterers, restaurants, cafeterias, airlines)
Industry
Retailers
Advertising material & promotion
Südzucker Group, page 19
FINANCIAL TRANSPARENCY
Segment CropEnergies: Overview
Financial Year 2013/14:
Revenues: ~720 mn €
Employees: 430
Factories: 4
Südzucker Group, page 20
FINANCIAL TRANSPARENCY
Segment CropEnergies (I) Megatrend: Renewable Energies
EU-Target 2020 traffic: 10% from renewable
energy sources
Reduction of greenhouse gas emissions
Rising independency from oil imports
Sustainable raw materials: Grain and
sugar syrups from European farming
Refining of all raw materials for food,
tank and feeder
Carbohydrates into bioethanol Motor fuels (E5, E10, E85 for Otto motor engines)
Technical appliances (Perfums, cleaning)
Proteins into food and animal feed
Gluten (Proteinproduct for food and animal feed)
ProtiGrain® (high value protein animal feed)
ProtiWanze® (liquid protein animal feed )
Liquefaction of biogenic CO2 (e.g. for the beverage industry)
20
Südzucker Group, page 21
FINANCIAL TRANSPARENCY
400
450
500
550
600
650
700
Nov-12 Mar-13 Jul-13 Nov-13 Mar-14 Jul-14 Nov-14
Segment CropEnergies: (II)
Quotation: Ethanol €/m3 Currently challenging market environment:
Only moderate decreasing grain prices
Decrease in fuel demand
Strong ethanol price decrease since autumn 2013
Acquisition Ensus, England:
Boost of nominal capacity by 400,000 m3 to ~1.2 mn m3 p.a. bioethanol
Capacity enlargement of food and animal feed production to ~1 mn t p.a.
Efficiency gains and increase in purchase and sales flexibility
Neutral alcohol plant at multi-site Zeitz
Commissioning middle of 2015
Production facility Tank storage Trading
Houston
São Paulo
Duisburg Rotterdam
Zeitz Wanze
Loon-Plage
Wilton
Santiago de Chile
Südzucker Group, page 22
FINANCIAL TRANSPARENCY
Segment Fruit: Overview
Production sites
Financial Year 2013/14:
Revenues: ~1.2 bn €
Employees: 5,371
Factories: 40
Südzucker Group, page 23
FINANCIAL TRANSPARENCY
Segment Fruit
Refining of agri-raw-materials into
highvalue ingredients for food processors,
especially in beverage-, dairy-, bakery-
and ice cream industry
40 production sites on 5 continents
Global market leader with fruit preparations
and largest producer of fruit juice
concentrates in Europe
Synergies with other group businesses
Commissioning of fourth fruit preparation
plant USA
Emerging markets Canada, USA (northeast)
Investment: 30 mn €, capacity 45,000 t p.a.
Südzucker Group, page 24
FINANCIAL TRANSPARENCY
Outlook 2014/15
Operating Profit 2013/14 2014/15e
Sugar
Revenues 2013/14 2014/15e
Special Products
CropEnergies
Fruit
Group 7.5 bn € ~ 7.0 bn € 622 mn € ~ 200 mn €
3.9 bn €
1.7 bn €
720 mn €
1.2 bn €
438 mn €
85 mn €
35 mn €
65 mn €
-20 to 0 mn €
>750 mn €
~30 to 70 mn €
Südzucker Group, page 25
FINANCIAL TRANSPARENCY
Mid term Outlook – Group Operating Profit
~ 200 mn €
2014/15
~ 550 mn €
Commissioning USA Volume growth parallel
to market growth
Fruit
Recovery wm price Market equilibrium Cost savings
Sugar
Utilization Pischelsdorf Launch Zeitz Biomass boiler Chile
Special Products
Ensus: Exploitation and efficiency gains
Normalisation ethanol pricing
Crop Energies
Mid term
Megatrends intact (population growth, increase in per-capita income ...)
Südzucker Group, page 26
FINANCIAL TRANSPARENCY
Südzucker: Value-driven growth…
Leading market positions
in all business areas
Attractive dividend
yield
High cash flow
generation
Strong balance sheet and financial
ratios
Südzucker sustainably will
benefit from megatrends