ANNUAL FINANCIAL REPORT 2009|10 THE SYNERGY EFFECT lagebericht_D 0305.indd 2 25.05.10 14:33 CONSOLIDATED FINANCIAL STATEMENTS 2009|10 BASED ON IFRS Group management report Consolidated fi nancial statements Notes to the consolidated fi nancial statements Statement of all legal representatives Independent auditors’ report PARENT COMPANY FINANCIAL STATEMENTS 2009|10 BASED ON AUSTRIAN COMMERCIAL CODE (UGB) Einzelabschluss Lagebericht Erklärung aller gesetzlichen Vertreter Bestätigungsvermerk lagebericht_D 0305.indd U3 25.05.10 16:48 GROUP MANAGEMENT REPORT 2009|10 26 Financial performance and fi nancial position 25 26 Changes in the scope of consolidation 26 Revenue and earnings 27 Investment 27 Financial position 28 Cash fl ow 28 Segment fi nancial results 29 Events after the reporting date 32 Sugar segment 32 Market environment 33 Raw materials, crops and production 34 Investment 34 Sugar: Austria 34 Sugar: Hungary 34 Sugar: Czech Republic 35 Sugar: Slovakia 35 Sugar: Romania 35 Sugar: Bosnia-Herzegovina 35 Sugar: Bulgaria 38 Starch segment 38 Market environment 38 Raw materials, crops and production 40 Investment 40 Starch: Austria 40 Starch: Hungary 40 Starch: Romania 40 Bioethanol 44 Fruit segment 44 Market environment 46 Investment 46 Raw materials and crops 47 Business performance 50 Environment and sustainability 56 Research and development 59 AGRANA’s staff 62 Risk management and system of internal control 65 Disclosures under section 243a (2) UGB 66 Disclosures under section 243a (1) UGB 67 Outlook 10 | 2009 AGRANA BETEILIGUNGS-AG BETEILIGUNGS-AG AGRANA lagebericht_E 1105.indd 25 11.05.10 14:58 FINANCIAL RESULTS AND FINANCIAL POSITION 26 GROUP BUSINESS PERFORMANCE 2009|10 2008|09 Change ¤000 ¤000 % Revenue 1,989,159 2,026,328 (1.8) EBITDA 176,246 119,177 +47.9 Operating profi t before exceptional items 91,937 37,832 +143.0 Operating margin 4.6% 1.9% Exceptional items (5,007) (3,190) +57.0 Operating profi t after exceptional items 86,930 34,642 +150.9 Purchases of property, plant and equipment and intangibles1 48,382 73,813 (34.5) Purchases of non-current fi nancial assets 941 1,672 (43.7) Staff count 7,927 8,244 (3.8) 1 Excluding goodwill. The consolidated fi nancial statements for the 2009|10 fi nancial year were prepared in accordance with International Financial Reporting Standards (IFRS). The consolidated fi nancial statements relate to AGRANA’s fi nancial year (the twelve months from March 2009 to February 2010), with comparative data presented for the prior year. CHANGES IN THE SCOPE OF CONSOLIDATION With eff ect from the end of the third quarter of 2009|10, AGRAGOLD Holding GmbH, an Austrian entity which serves primarily to hold the distribution companies in the West Balkan region, was consolidated for the fi rst time. This 50% joint venture is included in the AGRANA Group fi nancial statements by proportionate consolidation. REVENUE AND EARNINGS Revenue of the AGRANA Group eased by 1.8% in the 2009|10 fi nancial year to € 1,989.2 million. In the Sugar and Starch segments, lower sales prices caused revenue to decline. The volume gains of 16.7% in the AGRANA Group compared to the prior year could not fully make up for the negative price eff ect. With revenue of € 684.1 million (prior year: € 702.5 million) in the Sugar segment, AGRANA registered a decrease in quota sugar sales, coupled with lower sales prices, against the backdrop of the EU sugar regime after the surrendering of quota. The sales quantities of non-quota sugar grew thanks to the development of new export markets. Revenue in the Starch segment declined to € 499.2 million (prior year: € 519.4 million) despite higher volumes. As a result of their adjustment to the trend in raw material prices, selling prices trended downward. The full utilisa- REVENUE BY REGION REVENUE BY SEGMENT Rest of the world 13.1% Fruit segment (2008|09: 11.8%) 40.5% Austria (2008|09: 39.7%) Rest of Europe 46.4% Sugar segment 2.2% (2008|09: 40.0%) 34.4% (2008|09: 8.1%) (2008|09: 34.7%) Eastern Europe Starch segment 38.3% 25.1% (2008|09: 40.1%) (2008|09: 25.6%) lagebericht_E 1105.indd 26 11.05.10 14:58 GROUP MANAGEMENT REPORT FINANCIAL RESULTS AND FINANCIAL POSITION tion of the bioethanol plants in Austria and Hungary mean- the Group’s profi t for the period was € 72.7 million (prior 27 while outweighed the eff ect of lower prices obtained for year: loss for the period of € 15.9 million). The profi t for ethanol and thus contributed to a rise in bioethanol revenue. the period attributable to shareholders of AGRANA grew to In the Fruit segment, revenue, at € 805.9 million, was held € 72.2 million (prior year: loss for the year of € 11.6 million); at about the year-earlier level (prior year: € 804.4 million) earnings per share were € 5.08 (prior year: loss per share through higher sales volumes. Fruit preparations revenue of € 0.82). (accounting for about 80% of Fruit segment revenue) matched the prior-year level despite a slight volume increase. In the fruit juice concentrates business, high growth in sales INVESTMENT quantities compensated for the signifi cant year-on-year reduction in sales prices. Investment (which excludes fi nancial investments) was further reduced in the 2009|10 fi nancial year as planned, Group operating profi t before exceptional items rose mark- from € 73.8 million in the prior year to € 48.4 million. In edly in 2009|10 from € 37.8 million to € 91.9 million. This the Sugar segment, the capital expenditure of € 11.4 million increase was driven primarily by the earnings improvement (prior year: € 19.4 million) was used largely for the replace- in the Fruit segment, where the profi t situation in fruit ment of plant and equipment and for environmental and juice concentrates was successfully stabilised. In the prior energy-related measures. The investment in the Starch year a write-down on apple juice concentrate inventories segment of € 10.8 million (prior year: € 23.8 million) served had weighed on the result. The Starch segment benefi ted process optimisation and the improvement of energy effi - from a normalisation in raw material markets and a satisfac- ciency. In the Fruit segment, the investment of € 26.1 million tory trend in the earnings situation for bioethanol. (prior year: € 30.6 million) included maintenance projects and production expansion in Russia, the United States, In fi nancial 2009|10, exceptional items represented a net Argentina and Austria. expense of € 5.0 million (prior year: net expense of € 3.2 million) and related only to the Fruit segment. They consisted of the expenses for the relocation of the holding FINANCIAL POSITION company of AGRANA Fruit and goodwill impairment from the already completed closure of the plant in Kaplice, Total assets at 28 February 2010 amounted to € 1,887.9 mil- Czech Republic. Operating profi t after exceptional items in lion, a reduction of € 108.3 million from the year-earlier level 2009|10 was thus € 86.9 million (prior year: € 34.6 million). of € 1,996.2 million. There was a decrease of € 15.5 million in non-current assets, due mainly to the lower investment. Net fi nancial items improved by € 67.5 million in 2009|10 Current assets declined by € 92.8 million. While inventories from a defi cit of € 67.1 million to a gain of € 0.5 million. and cash and cash equivalents contracted, trade receivables The improvement was driven largely by currency translation rose. The inventory reduction in the Sugar segment was gains (especially in Poland, Hungary, Romania and Brazil), the result of the lower sugar volumes in inventory and lower but also by declining interest costs on the lower net debt, valuations for quota sugar after the EU restructuring levy’s and gains on the sale of businesses. elimination from the 2009|10 sugar marketing year onward. At the same time, inventory value declined in the Fruit As a result, profi t before tax increased to € 87.4 million segment, refl ecting higher sales quantities of apple juice (prior year: pre-tax loss of € 32.4 million). After a tax expense concentrate and reduced valuations as a consequence of the of € 14.7 million (representing an eff ective tax rate of 16.8%), lower raw material prices. INVESTMENT VERSUS DEPRECIATION (¤m) 10 | 207.7 2.8 2009 Purchases of property, plant and equipment and intangibles 84.3 73.1 73.8 81.3 (excluding goodwill) 48.4 0.9 Depreciation and amortisation refl ected 0.6 in operating profi t before exceptional items Ratio of investment to depreciation BETEILIGUNGS-AG AGRANA 2007|08 2008|09 2009|10 and amortisation lagebericht_E 1105.indd 27 11.05.10 14:58 AGRANA AT A GLANCE | GROUP MANAGEMENT REPORT | CONSOLIDATED FINANCIAL STATEMENTS | PARENT COMPANY FINANCIAL STATEMENTS | FURTHER INFORMATION 28 AGRANA further improved its capital structure in the Revenue in the Sugar segment for the 2009|10 fi nancial 2009|10 fi nancial year. With an equity ratio of 47.9% (prior year eased by 2.6% to € 684.1 million. The key reason was year: 41.4%) at the balance sheet date, equity increased the combination of the lower quota sugar sales volume and to € 904.7 million from the level of 28 February 2009 of declining prices. Despite intra-year fl uctuation in the export € 825.9 million. Net debt at 28 February 2010 stood at activity of industrial customers, AGRANA was able to hold € 376.6 million, a reduction of 19.9% from the year-ago level constant the sales quantities of quota sugar to industry.