SUGAR STARCH FRUIT The natural upgrade Corporate presentation 2015 AGRANA Beteiligungs-AG Corporate presentation 2015
OVERVIEW 1 About us 98 Segment SUGAR 2 AGRANA-products in daily life 10 9 Segment STARCH 3 Strategy 11 10 Segment FRUIT 4 Production sites 12 11 Research & Development 5 Group- & ownership structure 13 Sustainability 6 Strategy 14 Business figures 2014 15 7 History 15 Outlook 8 Financials Corporate presentation 2015 2
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 8,700 employees 54 production sites 2.5 bn revenue Leading SUGAR SUPPLIER In Central, Eastern & South-Eastern Europe Major manufacturer of customer-specific STARCH PRODUCTS World market leader in the production of FRUIT PREPARATIONS Corporate presentation 2015 3
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 2015 4
REFINING OF AGRICULTURAL RAW MATERIALS STRATEGY Customer- and marketoriented growth in CEE and Southeastern Europe Organic growth, and adding value by tailormade 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 2015 5
54 PRODUCTION SITES WORLDWIDE INT. PRODUCTION MEETS INT. CUSTOMERS SUGAR 7 sugar beet plants 2 raw sugar refineries & Instantina plant STARCH 5 starch plants (incl. 2 bioethanol plants) FRUIT 25 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 2015
GROUP STRUCTURE AGRANA Beteiligungs-AG 54 sites 8,708 employees 2.5 bn revenue SUGAR AGRANA Zucker GmbH 10 sites 2,326 employees 731.1 m revenue STARCH AGRANA Stärke GmbH 5 sites 863 employees 700.1 m revenue FRUIT AGRANA Internationale Verwaltungs- & Asset Management GmbH 39 sites 5,519 employees 1,062.3 m revenue Corporate presentation 2015 7
OWNERSHIP STRUCTURE Rübenproduzenten Beteiligungs-GmbH Raiffeisen-Holding NÖ-Wien ~30% ~70% ZBG ~50% ~10% ~50% Z & S Zucker und Stärke Holding AG ~86,2% 1 TOTAL: 14.202.040 shares Südzucker ~6,5% 2 ~7,3% FREE FLOAT Intention to increase the effective free float 1 without call option exercisable on AGRANA shares held directly by Südzucker 2 directly held by Südzucker; 4.9% to be placed in the market Corporate presentation 2015 8
OUR HISTORY FOUNDING of AGRANA Beteiligungs-AG 1988 1989 1990 1991 2003 2008 2010-2011 2012 2013 2014 PARTNER- SHIP with Germany s Südzucker AG 50% ACQUISITION In the Hungarian corn starch und Isoglucose mill HUNGRANA 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 DEVELOPMENT of the third business segment, Fruit, with the areas of fruit preparations and fruit juice concentrates OPENING Of the bioethanol facility in Pischelsdorf Austria 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 MERGER of AGRANA Juice Holding GmbH and Ybbstaler Juice Austria GmbH and the launch of the new brand AUSTRIA JUICE OPENING of the wheat starch plant in Pischelsdorf Austria OPENING of the new AGRANA Research & Innovation Center (ARIC) in Tulln Austria EXPANSION of the company s presence in the area of fruit preparations with a fourth US-plant in Lysander USA Corporate presentation 2015 9
1988-2015 REVENUE AND OPERATING PROFIT REVENUE OPERATING PROFIT 3.500 3.000 m revenue 2.500 2.000 1.500 1.000 500 355.8 500.7 24.7 12.6 0 580.9 29.1 875.7 1,989.2 80.5 91.9 2,493.5 102.0 400 300 200 100 m operating profit Corporate presentation 2015 10
REVENUE-, EBIT- AND MARGIN DEVELOPMENT REVENUE EBIT EBIT-MARGE 3,065.9 2,841.7 2,577.6 2,493.5 1,989.2 2,165.9 231.0 217.9 m 4.4 % 86.9 5.9 % 128.6 9.0 % 7.1 % 5.9 % 166.9 4.9 % 121.7 Corporate presentation 2015 *The prior-year data have been restated under IAS 8. 11
2014 15 VS PRIOR YEAR REVENUE BY SEGMENT SUGAR STARCH FRUIT GROUP 41.2% 2013/14* 33.9% 42.6% 2014 15 29.3% 24.9% 28.1% 3000 2,841.7 m 2000 2,493.5 1000 962.9 731.1 706.7 700.1 1,172.11,062.3 0 2013 14*2014 15 2013 14* 2014 15 2013 14* 2014 15 2013 14* 2014 15 Corporate presentation 2015 *The prior-year data have been restated under IAS 8. 12
2014 15 VS PRIOR YEAR EBIT BY SEGMENT SUGAR STARCH FRUIT GROUP 38.2% 2013/14* 29.5% 48.1% 2014 15 7.4% 200 32.3% 44.5% 150 166.9 m 100 121.7 50 0 49.2 53.9 54.1 63.8 58.6 9.0 2013 14* 2014 15 2013 14* 2014 15 2013 14* 2014 15 2013 14* 2014 15 Corporate presentation 2015 *The prior-year data have been restated under IAS 8. 13
INVESTMENT DEVELOPMENT SUGAR STARCH FRUIT GROUP m 160 140 120 100 80 60 55.9 97.1 42.5 149.8 34,80 59.1 130.0 51.8 35.0 91.2 43.0 40 20 0 30.8 29.3 13.7 55.9 9.1 43.1 16.0 25.3 34.5 2010 11 2011 12 2012 13 2013 14 2014 15* Corporate presentation 2015 *equity-method 14
2014 15 INVESTMENT DETAILS SUGAR 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 STARCH 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 FRUIT 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 Corporate presentation 2015 15
SEGMENT SUGAR Corporate presentation 2015 16
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 countryspecific brands Europe s largest producer of organic sugar: Wiener Bio Kristallzucker : sugar made from organically grown Austrian beet Corporate presentation 2015 17
BENEFIT FROM THE STRONG MARKET POSITION IN CEE AND SEE AGRANA SUGAR EU- 1,000 TONNES QUOTA Austria 351 351 #1 Hungary 105 105 #1 Czech Republic 372 94 #2 Slovakia 112 44 #2 Romania 105 24 n.a. Total 1,045 618 Refining activities in total (incl. Bosnia-H.) (1) AGRANA beet quota for 2014 15 Sugar Marketing Year (SMY) (2) Refined raw sugar production (2014 15) AGRANA SUGAR BEET QUOTA (1) MARKET POSITION 278 (2) n.a. 7 SUGAR PLANTS AND 2 RAW SUGAR REFINERIES Czech Rep. Austria Slovakia Hungary* Bosnia- Herzegovina Countries with plants Other markets Romania Bulgaria Beet sugar plants Raw sugar refinery Distribution centre * Also with refining activities Corporate presentation 2015
SEGMENT STARCH Corporate presentation 2015 19
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 Corporate presentation 2015 20
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 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 GMOfree starches for the food industry 5 STARCH PLANTS INCL. 2 BIOETHANOL FACILITIES Countries with production sites Main markets Starch plants Bioethanol plants Corporate presentation 2015 21
SEGMENT FRUIT Corporate presentation 2015 22
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 Corporate presentation 2015 23
FRUIT SEGMENT MARKET POSITION FRUIT PREPARATIONS 25 FRUIT PREPARATION PLANTS & 14 FRUIT JUICE CONCENTRATE PLANTS 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 FRUIT JUICE CONCENTRATES 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 Countries with production sites Potential Growth Regions Corporate presentation 2015 24
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 a nice colour Corporate presentation 2015 25
AGRANA RESEARCH & INNOVATION CENTER TULLN AUT RESEARCH & DEVELOPMENT AGRANA Research & Innovation Center (ARIC) 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 Corporate presentation 2015 26
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: 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 2015 27
MEASURES IN THE CORE BUSINESS SUSTAINABILITY AT AGRANA ENERGY EFFICIENCY Reduced emissions by low-temperature dryers in Tulln and Leopoldsdorf AUT Since its introduction in FY 11 12 around 95,000 tonnes of CO 2 -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 Corporate presentation 2015 28
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 2015 29
BIOREFINERY PISCHELSDORF WHEAT STARCH BIOETHANOL ActiProt High-purity CO 2 Corporate presentation 2015 30
" ONE RAW MATERIAL = FOUR PRODUCTS" WITH ONE RAW MATERIAL TO FOUR PRODUCTS 1 wheat starch products WHEAT BRAN A-WHEAT STARCH WHEAT rollermill starch-factory WHEAT GLUTEN B+C -Starch 2 BIOETHANOL 3 WHEAT + CORN hammermill fermenter ethanol-plant ACTIPROT 4 BIOGENIC CO 2 Corporate presentation 2015 31
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 CO 2 previously bound in plants Used in particular for carbonised beverages This substitutes fossil-based CO 2 Corporate presentation 2015 32
2014 15 BUSINESS FIGURES Corporate presentation 2015
KEY FINANCIALS m 2014 15 2013 14* Change % Revenue 2,493.5 2,841.7 (12.3) EBITDA 181.9 214.3 (15.1) Operating profit (EBIT) 121.7 166.9 (27.1) Operating profit before except. items (5.7) 3.9 (245.7) Operating Margin % 4.9 5.9 (1.0) pp Profit for the period 84.6 107.0 (20.9) Dividend 3.60 3.60 0.0 Investments 91.2 130.0 (29.8) Earnings per share 5.70 7.40 (23.0) Employee, average 8,708 8,505 2.4 *The prior-year data have been restated under IAS 8. Corporate presentation 2015 34
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 35
CONSOLIDATED CASHFLOW STATEMENT m (condensed) 2014 15 2013 14* Change % Operating cash flow before change in working capital Losses/(gains) on disposal of non-current assets 168.6 186.1-9.4 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 36
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 37
AGRANA OUTLOOK Corporate presentation 2015
OUTLOOK 2015 16 Group revenue: expected to remain steady EBIT: slight increase projected Sugar: persistent strong general downward pressure on prices Starch: competitive pressure in saccharification products, 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 Corporate presentation 2015 39
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