SUGAR STARCH FRUIT. Corporate presentation 2017 AGRANA Beteiligungs-AG. The natural upgrade. Corporate presentation

Transcription

1 SUGAR STARCH FRUIT The natural upgrade Corporate presentation 2017 AGRANA Beteiligungs-AG Corporate presentation

2 OVERVIEW About us AGRANA-products in daily life Strategy Production sites Group- & ownership structure History Financials Investment Segment SUGAR Segment STARCH Segment FRUIT Research & Development Sustainability Economic footprint Business figures Outlook Corporate presentation

3 ABOUT US AGRANA FACTS 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 Leading SUGAR SUPPLIER In Central, Eastern & South-Eastern Europe Major manufacturer of customer-specific STARCH PRODUCTS 8,900 employees 57 production sites 2.6 bn revenue World market leader in the production of FRUIT PREPARATIONS Corporate presentation

4 STRATEGIC POSITIONING B2B WE ALL CONSUME AGRANA (PRODUCTS) At the beginning there is always agriculture AGRANA supplies the Big Names... AGRANA refines agricultural raw materials... confectionery, beverage, fermentation industries, food retailers; paper, textile, pharmaceutical industries; feed industry; dairy, ice-cream, bakery industries and many more We all consume AGRANA every day... Corporate presentation

5 AGRANA-PRODUCTS IN DAILY LIFE AT A GLANCE 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. for sauces, 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 dairy products, ice-cream, in baked goods or as fruit decoration fruit juice concentrates in soft drinks and alcoholic beverages Corporate presentation

6 REFINING OF AGRICULTURAL RAW MATERIALS STRATEGY Customer- and marketoriented growth in CEE and Southeastern Europe Organic growth, and adding value by tailor-made products Customer- and marketoriented global growth SUGAR CENTRAL & EASTERN EUROPE STARCH EUROPE FRUIT GLOBAL Synergies Use synergies between business segments to position the Group optimally for the increasingly volatile operating environment in the segments Investors & Customers Balance of risk, exchange of knowhow between the segments, cost savings through synergies Capital market A long-term asset for shareholders Corporate presentation

7 INTERNATIONAL PRODUCTION MEETS INT. CUSTOMERS 57 PRODUCTION SITES WORLDWIDE SUGAR 7 sugar beet plants 2 raw sugar refineries & Instantina plant STARCH 5 starch plants (incl. 2 bioethanol plants) FRUIT 28 fruit preparation plants and 14 fruit concentrate plants Czech Rep. Slovakia Austria Hungary* Romania Bosnia- Herzegovina Bulgaria Countries with plants Other markets Beet sugar plants Raw sugar refinery Distribution centre * Also with refining activities Countries with production sites Main markets Starch plants Bioethanol plants Countries with production sites Potential Growth Regions Corporate presentation

8 AGRANA IS PROCESSING 10 MILLION TONNES OF RAW MATERIALS million tonnes Beet Raw sugar Grain Potato Fruits Including 50% of the JVs HUNGRANA and STUDEN Corporate presentation

9 AGRANA IS SELLING 5.4 MILLION TONNES OF HIGH-QUALITY PRODUCTS 0.7 m tonnes of core products Fruit preparations (dairy and non-dairy Fruit juice concentrates Other juice core products (NFC, fruit wine 0.07 m tonnes of by-products/other Particularly pomace Natural flavours, beverage bases Fruit 14% m tonnes of core products Sugar Sugar speciality products (Quota and non-quota sugar) 0.9 m tonnes of by-products + other Feedstuffs & fertilisers Molasses, beet pulp 1.2 m tonnes of core products Native starches Modified starches Saccharification products Alcohol and ethanol 0.7 m tonnes of by-products Feedstuffs & fertilisers Proteins (incl. DDGS / ActiProt ) Corn germ / mash 0.5 m tonnes of other products Soy Dried beet pulp Starch 45% 2.4 million tonnes Sugar Starch Fruit Sugar 41% Including 50% of the JVs HUNGRANA and STUDEN Corporate presentation

10 GROUP STRUCTURE AGRANA Beteiligungs-AG 57 sites 8,870 employees 2.6 bn revenue SUGAR STARCH FRUIT AGRANA Zucker GmbH 10 sites 2,135 employees m revenue AGRANA Stärke GmbH 5 sites 974 employees m revenue AGRANA Internationale Verwaltungs- & Asset Management GmbH 42 sites 5,761 employees 1,155.5 m revenue Corporate presentation

11 OWNERSHIP STRUCTURE Rübenproduzenten Beteiligungs-GmbH Raiffeisen-Holding NÖ-Wien ~30% ~70% ZBG ~50% ~10% ~50% Z & S Zucker und Stärke Holding AG ~78.4% Südzucker TOTAL: 15,622,244 shares ~2.7% 1 ~18.9% 1 directly held by Südzucker Corporate presentation

12 OUR HISTORY FOUNDING of AGRANA Beteiligungs-AG 50% ACQUISITION In the Hungarian corn starch und Isoglucose mill HUNGRANA DEVELOPMENT of the third business segment, Fruit, with the areas of fruit preparations and fruit juice concentrates EXPANSION of the company s presence in the area of fruit preparations in the Middle East and Africa with plants in Cairo Egypt and Johannesburg South Africa OPENING of the wheat starch plant in Pischelsdorf Austria OPENING of packaging stock and logistics hub in Kaposvár HU EXPANSION Of market position in Asia through the acquisition of the Indian fruit processing plant SAIKRUPA Fruit Processing Pvt. Ltd PARTNER-SHIP with Germany s Südzucker AG INITIAL PUBLIC OFFERING (IPO) of AGRANA Beteiligungs- AG EXPANSION of the Sugar and Starch segments by means of acquisitions in Bosnia- Herzegovina, Bulgaria, Romania, Slovakia, Czech Republic and Hungary OPENING Of the bioethanol facility in Pischelsdorf Austria MERGER of AGRANA Juice Holding GmbH and Ybbstaler Juice Austria GmbH and the launch of the new brand AUSTRIA JUICE EXPANSION of the company s presence in the area of fruit preparations with a fourth US-plant in Lysander USA OPENING of the new AGRANA Research & Innovation Center (ARIC) in Tulln Austria EXPANSION of market position in South America through the acquisition of 100% of the share in Main Process S.A., a producer of fruit preparations in Buenos Aires Corporate presentation

13 SINCE 1988 SOLID ECONOMIC GROWTH m Revenue EBIT Annual growth rates: CAGR Revenue: 7.0 % CAGR EBIT: 6.9 % 2, , , Corporate presentation

14 STEADY DIVIDEND POLICY 140 Performance (10 July May 2017): AGRANA % (last: ) * 0 AGRANA share price Dividend per share *Dividend proposal to the AGM on 7 July 2017: 4.00 per share Corporate presentation

15 REVENUE-, EBIT- AND MARGIN DEVELOPMENT REVENUE EBIT 3.065, ,7 EBIT-MARGIN 2.577, , , , , ,9 231,0 217,9 in Mio. 86,9 4,4 % 128,6 166,9 121,7 129,0 9,0 % 7,1 % 5,9 % 5,9 % 5,2 % 4,9 % 172,4 6,7 % * The prior-year data have been restated under IAS 8. Corporate presentation

16 INVESTMENT DEVELOPMENT SUGAR STARCH FRUIT GROUP m , , , * * * *equity-method Corporate presentation

17 INVESTMENT OVERVIEW m SUGAR General overhaul of the high-bay warehouse in Tulln, Austria Renewal of the fresh water treatment in Tulln, Austria Construction of the pelleted dried beet bagging station in Leopoldsdorf, Austria STARCH Expansion of corn processing in Aschach, Austria Expansion of starch saccharification facilities in Aschach, Austria Construction of a new maltodextrin spray drying plant in Aschach, Austria Sugar Starch Fruit GROUP FRUIT Construction of a third production line in Lysander, New York, USA Installation of a bag-in-box packaging in Botkins, Ohio, USA Installation of a new production line in Mitry-Mory, France Corporate presentation

18 SEGMENT SUGAR 18 Corporate presentation

19 SUGAR SEGMENT Sugar: is obtained from sugar beet without any additives pure, natural product is a natural provider 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 Kristall- und Staubzucker : sugar made from organically grown Austrian beet Corporate presentation

20 BENEFIT FROM THE STRONG MARKET POSITION IN CEE AND SEE AGRANA SUGAR 7 SUGAR PLANTS AND 2 RAW SUGAR REFINERIES Czech Rep. Slovakia Austria Hungary* Romania Bosnia- Herzegovina Bulgaria Countries with plants Other markets Beet sugar plants Raw sugar refinery Distribution centre * Also with refining activities Corporate presentation

21 SUGAR SEGMENT Maintenance of regional products...and specialty products Corporate presentation

22 SEGMENT STARCH Corporate presentation

23 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 (e.g. 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 Corporate presentation

24 STARCH SEGMENT MARKET POSITION 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 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 Bioethanol business: part of the Starch segment STARCH 5 starch plants (incl. 2 bioethanol plants) Countries with production sites Main markets Starch plants Bioethanol plants Corporate presentation

25 SEGMENT FRUIT Corporate presentation

26 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 icecream 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 Corporate presentation

27 FRUIT SEGMENT MARKET POSITION FRUIT PREPARATIONS 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 Asia-Pacific region 28 FRUIT PREPARATION PLANTS & 14 FRUIT JUICE CONCENTRATE PLANTS FRUIT JUICE CONCENTRATES Most important 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 Countries with production sites Potential Growth Regions Corporate presentation

28 FRUIT PREPARATION WHAT IS IT ABOUT? FRUIT SUGAR FRUIT PREPARATIONS + = most important ingredient of fruit preparations Frozen (IQF or block) Aseptic Purees Concentrates sweetens and supports taste and durability Crystal sugar Liquid sugar (syrup) Other sweeteners THICKENERS create a good mouth-feel and prevent emulsions Pectins Starch Guar, Xanthan, optional flavors and colours for an even fruitier taste and an intense colour Corporate presentation

29 AGRANA RESEARCH & INNOVATION CENTER RESEARCH & DEVELOPMENT AGRANA Research & Innovation Center (ARIC) Bundling of all R&D activities at ARIC in Tulln AUT 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 Corporate presentation

30 AGRANA S UNDERSTANDING OF SUSTAINABILITY Balance of economic, environmental and social responsibility At AGRANA, we 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. Corporate presentation

31 AGRANA S CORE SUBJECTS ALONG THE VALUE CHAIN Environmental and energy aspects of production Environmental and social criteria in the sourcing of agricultural raw materials Compliance and business conduct Labour practices and human rights of employees Product responsibility and sustainable products Social engagement Sustainability Reporting: Acc. to GRI integrated in AGRANA s annual reports since Corporate presentation

32 ENVIRONMENTAL AND SOCIAL CRITERIA IN THE SOURCING OF AGRICULTURAL RAW MATERIALS SUSTAINABLE AGRICULTURE INITIATIVE (SAI) SAI is an initiative of stakeholders of the food industry, founded in 2002 by Nestlé, Unilever and Danone. SAI develops principles and practices of sustainable agriculture SAI s 2 major tools to document sustainable environmental and social practices in the agricultural value chain Farm Sustainability Assessment (FSA) Benchmarking Tool for international certification standards & national legislation AGRANA has been a member of SAI since 2014 and uses the FSA questionnaire to assess contract growers and the benchmarking tool in all its business segments Farm Sustainability Assessment (FSA) & Benchmarking Tool FSA is a questionnaire (applicable worldwide), that enables agricultural producers to assess the status of their operations in terms of environmentally and socially sustainable production (112 questions on farm management, soil and nutrient management as well as plant protection). The benchmarking tool compares requirements of internat. certification standards with the requirements of the FSA-questionnaire Corporate presentation

33 MEASURES IN THE CORE BUSINESS SUSTAINABILITY AT AGRANA ENERGY EFFICIENCY 2014: Introduction of an energy-management-system in all Austrian production plants and certification according to ISO 50001; CEE sites as of Low temperature dryers installed at the Tulln & Leopoldsdorf site, both Austria, have saved more than 100,000 tonnes CO 2equ. since their installation in Target: energy-self-sufficient in terms of figures of the sugar plant Kaposvár HU The Kaposvár sugar plant in Hungary generated about 30 million cubic metres of biogas from beet pulp in the financial year. This would have been sufficient for the site: to cover 80% of its primary energy requirement for the beet campaign, or 60% of its total primary energy needs for beet processing and the refining of raw sugar about 8.3 million cubic metres of the biogas produced at the facility were refined by the biogas upgrading plant installed in 2015 into approximately 4.9 million cubic metres of biomethane for feeding into the local natural gas grid and this was equivalent to the annual heating requirement of about 1,950 single-family homes Targets Sugar (baseline ): 5% reduction of direct energy / tonne of core- & by-products Starch (baseline ): 50 GWh (all measures summed up) reduction of energy consumption until Fruit (baseline ): 6.8% reduction of total energy consumption / tonne of fruit preparation (baseline ) Hold energy use per tonne of fruit juice concentrate & byproducts constant at baseline Corporate presentation

34 MEASURES IN THE CORE BUSINESS SUSTAINABILITY AT AGRANA ZERO-WASTE -PRINCIPLE 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 Corporate presentation

35 BIOREFINERY PISCHELSDORF BIOETHANOL WHEAT STARCH Feedstuff ActiProt High-purity CO 2 Corporate presentation

36 ENVIRONMENTAL AND ENERGY ASPECTS OF PRODUCTION 100% UTILISATION OF RAW MATERIALS WITH ONE RAW MATERIAL TO FOUR PRODUCTS 1 Wheat-Starch-Products WHEAT BRAN approx. 55,000 t A-WHEAT STARCH WHEAT rollermill Starch-factory approx. 105,000 t WHEAT GLUTEN approx. 23,500 t B+C -Starch 2 up-to 240,000m³ BIOETHANOL 3 approx. 180,000 t WHEAT + CORN hammermill Fermenter Ethanol-plant ACTIPROT 4 approx. 100,000 t BIOGENIC CO 2 Corporate presentation

37 AGRANAS ECONOMIC FOOTPRINT Study carried out by Economica Calculation of the economic impact of AGRANA's business operations according to the companies understanding of sustainability, as a balance of economic, environmental and social aspects Methodology: Input-Output Analysis Based on data of the financial year Gross value-added: the gross value added calculates the amount that is available to remunerate the production factors of labour (wages and salaries) and capital (profit, interest on borrowed capital and deductions). Direct effects: Include that value of gross value creation or employment that is earned directly in the enterprise under consideration or generates jobs. Indirect effects: Come into existence through the advance services interfaces of the observed enterprise in other sectors (e.g. a clinic requires advance services medications, electricity, etc., through which the final demand in the pharmaceutical industry and the electricity economy are stimulated and then in turn need advance services, etc.). Induced effects: The jobs created and/or secured in the direct or indirect effect generate income that is then spent again by the workers (above all for consumption). This promotes ultimate demand in the respective sectors (especially retail). Multipliers: Represent the extent to which the total effects exceed the original direct effect. A multiplier is calculated as the sum of the total value added divided by the direct economic value added generated by AGRANA. Corporate presentation

38 RESULTS ECONOMIC FOOTPRINT AGRANA-GROUP Gross value-added (business operations): in m ,708 30, Gross value-added (investment): in m 1.5 bn Employment effects (business operations): Employment effects (investments): 172 m 40,000 jobs 4,622 jobs Macroeconomically relevant! Share of the Austrian GDP: Direct effect: around 0.2% Total effect: around 0.5% Gross value-added multiplier: Every Euro of gross value-added generated by AGRANA, created up to two additional euros of valueadded in other companies. Employment multiplier: direct indirect + induced Corporate presentation

39 GROSS VALUE-ADDED (GVA) EFFECTS AGRANA GROUP (BUSINESS OPERATIONS) Gross value-added effects of the AGRANA Group s business operations by segment in m, ,485.3 The largest single contribution (58%) is made by the Fruit segment The largest economic lever expressed as the multiplier, is also found in the Fruit segment. Multiplier: Sugar: 2.85 Starch: 2.69 Fruit: 3.03 Corporate presentation

40 EMPLOYMENT EFFECTS AGRANA GROUP (BUSINESS OPERATIONS) Employment effects of the AGRANA Group s business operations by segments, (heads), ,708 29,103 1,867 39,678 The largest contribution to the employment effects is made by the Fruit segment because of the global presence and the employment model. The larger economic levers, are however found in the Starch and Sugar segments. Multiplier: Sugar: 5.52 Starch: 5.81 Fruit: 3.95 Corporate presentation

41 BUSINESS FIGURES Corporate presentation

42 VS PRIOR YEAR REVENUE BY SEGMENT SUGAR STARCH FRUIT GROUP % % 29.1% 45.1% % 28.7% 2, ,477.6 Revenue in m , , Corporate presentation

43 VS PRIOR YEAR EBIT BY SEGMENT SUGAR STARCH FRUIT GROUP 45.6% 5.4% % 0.6% 6.2% 41.6% % 3.6% 51.1% % 44.2% 150 EBIT margin % EBIT in m Corporate presentation

44 CONSOLIDATED INCOME STATEMENT m (condensed) Change Revenue 2, , ,4% EBITDA ,5% Operating profit before except. items and results of equity-accounted JV % Share of results of equity-accounted JV % Exceptional items (9.0) (3.1) % EBIT % EBIT margin 6.7% 5.2% +1.5pp Net financial items (17.9) (24.5) +26.9% Profit before tax % Income tax expense (36.6) (23.5) -55.7% Profit for the period % Attributable to shareholders of the parent % Earnings per share % 1 EBITDA represents operating profit before exceptional items, results of equityaccounted joint ventures, and operating depreciation and amortisation. 2 EPS is calculated on the basis of 15,622,244 outstanding shares at the balance sheet date (29 Feb 2017) Corporate presentation

45 CONSOLIDATED BALANCE SHEET m (condensed) Change Non-current assets 1, , % Current assets 1, , % Non-current assets held for sale ,0% Total assets 2, , % Equity 1, , % Non-current liabilities % Current liabilities % Total equity and liabilities 2, , % Equity ratio 56.9% 53.5% +3.4pp Net debt % Gearing 17.0% 33.8% -16.8pp Corporate presentation

46 CONSOLIDATED CASH FLOW STATEMENT m (condensed) Change Operating cash flow before changes in working capital % Changes in working capital 31.8 (73.7) % Total of interest paid/received and tax paid (34.0) (50.3) +32.4% Net cash from operating activities % Net cash (used in) investing activities (171.5) (19.9) % Net cash (used in) financing activities 9.3 (163.6) % Net (decrease)/increase in cash and cash equivalents 93.6 (81.6) % Corporate presentation

47 ANALYSIS OF NET FINANCIAL ITEMS m Change Net interest expense (10.2) (8.4) -21.4% Currency translation differences (1.2) (13.5) +91.1% Share of results of non-consolidated subsidiaries and outside companies ,900.0% Other financial items (7.1) (2.6) % Total (17.9) (24.5) +26.9% Corporate presentation

48 AGRANA OUTLOOK Corporate presentation

49 OUTLOOK AGRANA expects Group revenue to increase slightly and operating profit (EBIT) to increase significantly for the financial year. Total investment in the three business segments, at about 140 million, will significantly exceed depreciation of about 90 million. Corporate presentation

50 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 offer to 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 in connection 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 in connection therewith. Corporate presentation