To Most, It Is an Integrated Annual Report. to AGRANA, It Is a Look in Many Directions

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To Most, It Is an Integrated Annual Report. to AGRANA, It Is a Look in Many Directions To most, it is an integrated annual report. To AGRANA, it is a look in many directions. 2016|17 Contents 2 AGRANA at a glance 10 Key financials 12 Letter from the CEO 14 Supervisory Board’s report 16 AGRANA’s Management Board 18 Corporate governance report 28 AGRANA production sites 30 AGRANA’s strategy 32 AGRANA in the capital market 35 Group management report 36 Organisational structure 38 Integrated sustainability reporting 42 Financial results 50 Sugar segment 57 Starch segment 64 Fruit segment 70 Sustainability 77 Research and development 80 AGRANA’s people 84 Risk management 90 Capital, shares, voting rights and rights of control 91 Outlook 93 Consolidated financial statements 94 Consolidated income statement 95 Consolidated statement of comprehensive income 96 Consolidated cash flow statement 97 Consolidated balance sheet 98 Consolidated statement of changes in equity 100 Notes to the consolidated financial statements 158 List of members of AGRANA’s boards 159 Subsidiaries and business interests 162 Statement by the members of the Management Board 163 Independent auditor’s report 167 Independent assurance report 169 Other information 170 Parent company income statement 171 Parent company balance sheet 172 Proposal for the appropriation of profit 173 Glossary of industry and trade terms 178 Contacts 179 Global Reporting Initiative 183 Performance indicators and their meaning f Contents 2016|17 at a glance █ All segments contributed to the significant improvement in operating profit █ Successful increase in share capital and free float █ Acquisition of Argentine fruit preparations manufacturer Main Process S.A. █ Revenue: € 2,561.3 million (up 3.4%; prior year: € 2,477.6 million) █ Operating profit (EBIT): € 172.4 million (up 33.6%; prior year: € 129.0 million) █ EBIT margin: 6.7% (prior year: 5.2%) █ Profit for the period: € 117.9 million (up 45.7%; prior year: € 80.9 million) █ Earnings per share: € 7.13¹ (up 22.5%; prior year: € 5.82) █ Equity ratio: 56.9% (prior year: 53.5%) █ Gearing ratio²: 17.0% (prior year: 33.8%) █ Proposed dividend of € 4.00 per share (prior year: € 4.00) █ Number of employees (FTE)³: 8,638 (up 1.5%; prior year: 8,510) Quick facts about AGRANA █ The leading sugar manufacturer in Central, Eastern and Southeastern Europe █ Major European producer of custom starch products and bioethanol █ World market leader in the production of fruit preparations █ Largest manufacturer of fruit juice concentrates in Europe █ 55 production sites⁴ in 25 countries⁴ around the world Financial calendar for 2017|18 12 May 2017 Results for full year 2016|17 (annual results press conference) 27 Jun 2017 Record date for Annual General Meeting participation 7 Jul 2017 Annual General Meeting in respect of 2016|17 12 Jul 2017 Ex-dividend date 13 Jul 2017 Results for first quarter of 2017|18 14 Jul 2017 Record date for dividend 14 Jul 2017 Dividend payment date 12 Oct 2017 Results for first half of 2017|18 11 Jan 2018 Results for first three quarters of 2017|18 1 Earnings per share based on the new total of 15,622,244 shares outstanding at 28 February 2017. 2 Debt-equity ratio (ratio of net debt to total equity). 3 Average number of full-time equivalents in the reporting period. 4 From May 2017, as a result of a new site in the Fruit segment in India. AGRANA 2016|17. Rewarding from every perspective. To most, it is a field. AGRANA ANNUAL REPORT 2016|17 To us, a thousand possibilities. Our expertise in procuring sustainably produced agricultural raw materials and our resource-efficient processing methods form the basis of our success as an industrial processor of sugar beets, grains, potatoes and fruits. This know-how, combined with constant striving for complete utilisation, creates opportunities for us – including many beyond our hallmark products of sugar, starch, fruit preparations and fruit juice concentrates. 3 To most, it is three segments. AGRANA ANNUAL REPORT 2016|17 To us, important synergies. Thanks to our three business segments of Sugar, Starch and Fruit, we are able to generate synergies in procurement, production and marketing and can diversify business risks. Our customers benefit from our broad portfolio of high-quality products for a wide range of applications, both in the food and non-food sectors. 5 To most, it is a laboratory. AGRANA ANNUAL REPORT 2016|17 To us, future opportunities. New product ideas and improved production processes are the engines of our development. With a strategic emphasis on innovation, we search for market-oriented solutions to product- and process-related challenges. At the AGRANA Research & Innovation Center (ARIC) in Tulln, Austria, teams from our three business segments are working today – often in partnership with our customers – to meet the markets’ needs of tomorrow. 7 To most, they are employees. AGRANA ANNUAL REPORT 2016|17 To us, individuals with valuable expertise. AGRANA employed an average of 8,569 people worldwide in the 2016|17 financial year. Fully trained, motivated employees are our company’s most valuable resource. We therefore want to give all of them the opportunities and support for the full development of their abilities. Last year, our training and development measures reached more than 85% of our employees. 9 Key financials under IFRS 2016|17 2015|16 2014|15 2013|14 2012|13 Financial performance1 Revenue €m 2,561.3 2,477.6 2,493.5 2,841.7 3,065.9 EBITDA2 €m 235.2 192.0 181.9 214.3 318.4 Operating profit before exceptional items and results of equity-accounted joint ventures €m 150.8 107.5 102.0 134.6 236.9 Share of results of equity-accounted joint ventures €m 30.6 24.5 25.4 28.4 0.0 Exceptional items €m (9.0) (3.1) (5.7) 3.9 (19.0) Operating profit [EBIT]3 €m 172.4 129.0 121.7 166.9 217.9 EBIT margin % 6.7 5.2 4.9 5.9 7.1 Profit before tax €m 154.5 104.4 116.5 136.7 190.2 Profit for the period €m 117.9 80.9 84.6 107.0 156.5 Attributable to shareholders of the parent €m 111.3 82.7 80.9 105.2 149.4 Attributable to non-controlling interests €m 6.6 (1.8) 3.7 1.8 7.1 Operating cash flow before changes in working capital €m 258.0 225.9 208.1 186.1 256.3 Investment4 €m 114.7 116.0 91.2 130.0 149.8 Number of employees5 8,638 8,510 8,550 8,505 8,449 Return on sales6 % 6.0 4.2 4.7 4.8 6.2 Return on capital employed7 % 9.0 6.7 6.7 8.7 13.4 Share data at last day of February Closing price € 106.00 80.50 80.51 87.70 101.50 Earnings per share € 7.138 5.82 5.70 7.40 10.52 Dividend per share € 4.009 4.00 3.60 3.60 3.60 Dividend yield % 3.89 5.0 4.5 4.1 3.5 Dividend payout ratio % 56.19 68.7 63.2 48.6 34.2 Price/earnings ratio 14.9 13.8 14.1 11.9 9.6 Market capitalisation €m 1,656.0 1,143.3 1,143.4 1,245.5 1,441.5 Number of shares ’000 15,622.2 14,202.0 14,202.0 14,202.0 14,202.0 Financial strength Total assets €m 2,481.4 2,243.2 2,406.9 2,392.2 2,578.4 Share capital €m 113.5 103.2 103.2 103.2 103.2 Core non-current assets10 €m 1,113.8 1,002.2 1,093.4 1,049.7 1,045.8 Equity €m 1,411.9 1,200.1 1,194.4 1,191.0 1,211.9 Equity ratio % 56.9 53.5 49.6 49.8 47.0 Net debt €m 239.9 405.8 330.3 386.8 483.7 Gearing ratio11 % 17.0 33.8 27.7 32.5 39.9 1 Detailed information concerning the calculation methods of individual performance indicators can be found on page 183. 2 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation. 3 Operating profit (EBIT) is after exceptional items and results of equity-accounted joint ventures. 4 Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill. 5 In 2016|17, 2015|16 and 2014|15: average number of full-time equivalents in the reporting period; until and including 2013|14, the numbers are headcounts. 6 Profit before tax, divided by revenue. 7 Operating profit before exceptional items and results of equity-accounted joint ventures, divided by capital employed. 8 Based on the new number of shares outstanding at the balance sheet date of 28 February 2017. 9 Based on the dividend proposal to the Annual General Meeting on 7 July 2017. 10 Non-current assets excluding deferred tax assets and the item “receivables and other assets”. 11 Ratio of net debt to total equity. SUGAR. STARCH. FRUIT. Integrated Annual Report 2016|17 of AGRANA Beteiligungs-AG for the year ended 28 February 2017 In this report on the 2016|17 financial year, the sustainability issues relevant to AGRANA’s business activities under the G4 reporting standard of the Global Reporting Initiative (GRI) are covered directly in the Group’s corporate governance report and management report. To make the non-financial information easier to find, a content index of all GRI G4 indicators included in the report is provided from page 179.
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