Zucker Stärke Frucht
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ZUCKERFRUIT STÄRKESTARCH FRUCHTSUGAR DerThe natürliche natural upgradeMehrwert AGRANA Beteiligungs-AG 20th German Corporate Conference Kepler Cheuvreux | Unicredit 18 January 2021 CONTENTS 1 Introduction & Business overview, Projects 2 AGRANA share 3 Segment overview incl. financial statements Q1-3 2020|21 4 Market environment and insights: Fruit, Starch and Sugar 5 COVID-19 6 ESG: Taking responsibility for the future 7 News & Outlook 2020|21 AGRANA | GCC 2021 | 18 January 2021 2 (FINANCIAL) HIGHLIGHTS INTRODUCTION & BUSINESS OVERVIEW 3 STRATEGIC POSITIONING B2B WE ALL CONSUME AGRANA (PRODUCTS) At the beginning there AGRANA supplies is always agriculture… the Big Names... We all consume AGRANA refines agrarian AGRANA every day raw materials... without noticing it... confectionery, beverage, fermentation industries, food retailers; paper, textile, pharmaceutical industries; feed industry; dairy, ice-cream, bakery industries and many more AGRANA | GCC 2021 | 18 January 2021 4 AGRANA PRODUCTS IN DAILY LIFE AT A GLANCE FRUIT STARCH SUGAR ▪ Fruit juice concentrates customers are ▪ AGRANA produces starch and special Sugar is sold fruit juice and beverage bottlers and starch products ▪ to consumers via the food trade and fillers ▪ Starch is a complex carbohydrate ▪ to manufacturers: e.g. soft drinks ▪ Fruit preparations are special which is insoluble in water. Starch is industry, confectionery industry, customized products for used in food processing e.g. as fermentation industry, other food and ▪ the dairy industry, thickener and for technical purposes beverage industries e.g. in the paper manufacturing ▪ the baked products industry, process ▪ the ice-cream industry. ▪ Bioethanol is part of our starch business AGRANA | GCC 2021 | 18 January 2021 5 REVENUE BY PRODUCT GROUP (2019|20) FOCUS ON FOOD FRUIT STARCH SUGAR € 1,185.4 m € 807.0 m € 488.3 m AGRANA | GCC 2021 | 18 January 2021 6 56 PRODUCTION SITES WORLDWIDE SEGMENTATION BY SEGMENT FRUIT STARCH SUGAR 26 fruit preparations plants and 5 starch plants 7 sugar beet plants 15 fruit juice concentrate plants (incl. 2 bioethanol plants) 2 raw sugar refineries (& Instantina) Czech Rep. Slovakia Austria Hungary* Romania* Bosnia- Herzegovina Bulgaria Countries with production sites Countries with production sites Countries with plants Beet sugar plants Potential growth regions Main markets Raw sugar refineries Starch plants Other markets Distribution centre Bioethanol *also with refining plants activities AGRANA | GCC 2021 | 18 January 2021 7 GROWTH BY STRATEGY Customer- and market- Synergies oriented growth in CEE and SUGAR CENTRAL- & EASTERN EUROPE Use synergies between Southeastern Europe business segments to position the Group Organic growth, and adding STARCH optimally for the value by tailor-made products increasingly volatile EUROPE operating environment in the segments Customer- and market-oriented FRUIT global growth GLOBAL Investor and customer value from Balance of risk Exchange of know-how Cost savings through synergies Capital market A long-term asset for shareholders AGRANA | GCC 2021 | 18 January 2021 8 Q1-3 2020|21 OVERVIEW ▪ Revenue: € 1,965.3 m (+4.6% vs Q1-3 prior year: € 1,879.4 m) ▪ EBIT: € 84.3 m (+20.8% vs Q1-3 prior year: € 69.8 m) ▪ EBIT margin: 4.3% (Q1-3 prior year: 3.7%) Wo World market leader in the production of ▪ EBIT in the 3rd quarter of 2020|21 (€ 28.5 FRUIT million) was again better year-on-year (Q3 prior PREPARATIONS year: € 18.1 million) and largest manufacturer of fruit juice concentrates ▪ This was possible through a package of in Europe efficiency, cost and investment-related Major European measures manufacturer of customised STARCH PRODUCTS and 56 bioethanol Production Leading ~9,100 sites € ~2.5 billion SUGAR SUPPLIER Employees (FTEs) Group revenue in Central, Eastern & in 2019|20 FY Southeastern Europe AGRANA | GCC 2021 | 18 January 2021 9 2020|21 PROJECTS 10 MOST IMPORTANT PROJECTS IN THE GROUP INVESTMENT OVERVIEW €m Q1-3 2020|21 98.6 FRUIT • Wastewater treatment in Jacona, Mexico 31.9 • Expansion of the warehouse for finished product in Chung- Buk, South Korea • Additional production line in Lysander, USA • Additional production line in Central Mangrove, Australia 47.4 STARCH 53.4 • Measures to increase specialty corn processing in Aschach 23.9 • Major overhaul of the spray dryers in Gmünd, Austria • Improvement measures at the wheat starch plant in Pischelsdorf, Austria 13.7 13.3 SUGAR 9.8 • Switch from coal to natural gas at our Sered‘ sugar plant, Q1-3 2019|20 Q1-3 2020|21 Slovakia Sugar Starch Fruit GROUP AGRANA | GCC 2021 | 18 January 2021 11 BIGGEST PROJECT IN FY 2020|21 MANUFACTURE OF CRYSTALLINE BETAINE ▪ Joint Venture between AGRANA and The Amalgamated Sugar Company (Boise, Idaho|USA) ▪ New betaine plant was successfully commissioned in August 2020 ▪ Operation was ramped up over the past few months and the processes are continually being optimised ▪ Investment: approx. € 37 million (AGRANA: € 18.5 million) ▪ 16 new jobs ▪ Production capacity of around 8,500 metric tonnes of crystalline betaine per year AGRANA | GCC 2021 | 18 January 2021 12 OUTLOOK FOR 2020|21 INVESTMENT PLAN ▪ Total investment across the three business segments in the 2020|21 financial year, at approximately € 76 million ▪ Significantly below both the 2019|20 capital expenditure (€ ~150 m) and current year’s budgeted depreciation (€ ~120 m) Investment split 2020|21 ▪ Implementation phase after (€ ~76 million) completion of major projects and capacity expansion in recent years 25% 45% 30% Fruit Starch Sugar AGRANA | GCC 2021 | 18 January 2021 13 INVESTMENT FOR SUSTAINABLE GROWTH CAPEX EVOLUTION € 1.2 billion investment in the Sugar Starch Fruit Deprec. GROUP last 10 financial years €m 183.8 149.8 149.7 140.9 130.0 116.0 114.7 97.1 91.2 ~73 55.9 AGRANA | GCC 2021 | 18 January 2021 14 AGRANA SHARE 15 DIVIDEND AND EARNINGS PER SHARE € 3 300% Dividend for 2019|20: 2.63 € 0.77 per share 244% 3 250% 2.24 2 200% 1.85 1.78 2 150% 1.43 1.46 1.125 1.00 100% 1 100% 1.00 1.00 0.90 0.90 0.90 0.77 1 69% 50% 0.77 50% 63% 56% 0.41 49% 34% 0 0% 2012|13 2013|14 2014|15 2015|16 2016|17 2017|18 2018|19 2019|20 DPS* EPS* Payout ratio *EPS and DPS adjusted; after the four-for-one Dividend yield (based on the closing share stock split performed in July 2018, all EPS and DPS values are based on the number of shares out- standing at 29 February 2020, which was price at the last balance sheet date): 4.4% 62,488,976. AGRANA | GCC 2021 | 18 January 2021 16 CURRENT STATUS SHAREHOLDER STRUCTURE TOTAL: 62,488,976 shares ~30% Rübenproduzenten Beteiligungs-GmbH ~50% (less one share -> AZ) ZBG ~70% Raiffeisen-Holding AGRANA Zucker, Stärke und NÖ-Wien 78.34% Frucht Holding AG ~10% ~50% Südzucker 2.74%1 18.92% FREE FLOAT 1 Directly held by Südzucker AGRANA | GCC 2021 | 18 January 2021 17 Q1-3 2020|21 SEGMENT OVERVIEW INCL. CONSOLIDATED FINANCIAL STATEMENTS 18 Q1-3 2020|21 VS PRIOR YEAR REVENUE BY SEGMENT €m Q1-3 2020|21 1,879.4 1,965.3 23.0% 45.4% 891.7 889.3 +0.3% Fruit 31.6% Starch Sugar Q1-3 2019|20 620.8 606.9 GROUP 20.4% 383.2 452.8 47.3% Q1-3 2019|20 Q1-3 2020|21 32.3% AGRANA | GCC 2021 | 18 January 2021 19 Q1-3 2020|21 VS PRIOR YEAR EBIT BY SEGMENT €m GROUP EBIT margin Fruit Starch Sugar EBIT margin Q1-3 2019|20 Q1-3 2020|21 5.2% 45.9 41.3 4.6% 9.4% 57.3 58.5 9.4% (15.5) (3.4%) (8.7%) (33.4) Q1-3 2019|20 Q1-3 2020|21 3.7% 69.8 84.3 4.3% AGRANA | GCC 2021 | 18 January 2021 20 FINANCIAL RESULTS FOR Q1-3 2020|21 FRUIT SEGMENT REVENUE REVENUE closely in line with the year-earlier level €m 889.3 +0.3% 891.7 ▪ In fruit preparations, revenue and sales volumes are stable ▪ Revenue in fruit juice concentrate activities with moderate increase Q1-3 2019|20 Q1-3 2020|21 EBIT off 10.0% from one year earlier ▪ Deviation mainly based on fruit juice concentrate EBIT business €m ▪ Reduced delivery volumes coupled with lower contribution margins of apple juice concentrate produced from the 2019 and 2020 crops 45.9 41.3 ▪ Margins are under pressure in berry juice concentrates made from the 2020 crop ▪ Fruit preparations business, overcoming numerous challenges, exceeded the EBIT of the year-earlier period Q1-3 2019|20 Q1-3 2020|21 ▪ Savings in administration and improved results in Mexico and North America AGRANA | GCC 2021 | 18 January 2021 21 FINANCIAL RESULTS FOR Q1-3 2020|21 STARCH SEGMENT REVENUE REVENUE up slightly from one year earlier €m ▪ Significant volume and revenue growth achieved for 620.8 606.9 wheat starch thanks to capacity expansion in Pischelsdorf, Austria ▪ At the same time, market demand for almost all core products eased, leading to higher pressure on prices ▪ Reflecting the impact of the COVID-19 pandemic, ethanol quotations were highly volatile Q1-3 2019|20 Q1-3 2020|21 ▪ Revenue with by-products remained stable EBIT EBIT was slightly above the year-earlier amount €m ▪ Earnings increase was made possible by the high ethanol selling prices, particularly in the third quarter 57.3 58.5 ▪ Margins of the other core products were down on reduced market demand ▪ Contribution of the equity-accounted HUNGRANA group rose significantly; high ethanol prices were the key EBIT Q1-3 2019|20 Q1-3 2020|21 driver AGRANA | GCC 2021 | 18 January 2021 22 FINANCIAL RESULTS FOR Q1-3 2020|21 SUGAR SEGMENT REVENUE REVENUE up significantly from one year earlier €m Growth was attributable 452.8 ▪ to higher sugar selling prices and 383.2 ▪ increased sugar sales volumes, especially with resellers Q1-3 2019|20 Q1-3 2020|21 EBIT EBIT improved, but still negative €m ▪ EBIT in the first nine months of 2020|21 was negative at a deficit of € 15.5 million ▪ But improved substantially compared to the same (33.4) (15.5) period of the previous year due to a relatively better sales price environment Q1-3 2019|20 Q1-3 2020|21 AGRANA | GCC 2021 | 18 January 2021 23 CONSOLIDATED INCOME STATEMENT Q1-3 Q1-3 Q3 Q3 €m (condensed) 2020|21 2019|20 2020|21 2019|20 Revenue 1,965.3 1,879.4 656.0 629.4 EBITDA1 159.4 139.5 58.3 48.7 Operating profit before except.