Post on 14-Feb-2017
Q1 INTERIM REPORTFIRST QUARTER 2016/17
1 March to 31 May 2016
Publication date 7 July 2016
C O N S O L I D A T E D G R O U P R E V E N U E S
down 1.3 % from last year
at € 1,608 [1,629] million.
C O N S O L I D A T E D O P E R A T I N G R E S U L T
increases to € 110 [57] million.
F U L L- Y E A R F I S C A L 2 0 1 6 / 1 7 F O R E C A S T U N C H A N G E D :
consolidated group revenues expected to come in
at about € 6.4 to € 6.6 [2015/16: 6.4] billion
and operating result to range between
€ 250 and € 350 [2015/16: 241] million.
CO
NT
EN
TS
Financial calendar
ANNUAL GENERAL MEETING FOR FISCAL 2015/1614 July 2016
Q2 1ST HALF YEAR REPORT 2016/1713 October 2016
Q3 1ST TO 3RD QUARTER REPORT 2016/1712 January 2017
PRESS AND ANALYSTS’ CONFERENCE FISCAL 2016/1718 May 2017
Q1 1ST QUARTER REPORT 2017/1813 July 2017
ANNUAL GENERAL MEETING FOR FISCAL 2016/1720 July 2017
Q21ST HALF YEAR REPORT 2017/1812 October 2017
This interim report is available in German and English. This
translation is provided for convenience and should not be
relied upon exclusively. PDF files of the interim report can be
downloaded from the company’s website at:
www.suedzucker.de/de/Investor-Relations/ or
www.suedzucker.de/en/Investor-Relations/
Südzucker AG’s fiscal year is not aligned with the calendar year.
The first quarter period extends from 1 March to 31 May.
On the following pages, the numbers in brackets represent the
corresponding previous year’s figures or items. Numbers and
percentages stated are subject to differences due to rounding.
Typing and printing errors reserved.
INTERIM MANAGEMENT REPORT
02 Economic report
16 Events after the balance sheet date
16 Risks and opportunities
16 Outlook
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
18 Comprehensive income
20 Cash flow statement
22 Balance sheet
24 Changes in shareholders’ equity
NOTES TO THE INTERIM FINANCIAL STATEMENTS
26 Segment report
28 (01) Principles of preparation of the interim consolidated financial statements
29 (02) Companies included in consolidation
29 (03) Earnings per share
30 (04) Inventories
30 (05) Trade receivables and other assets
31 (06) Other provisions and accruals
31 (07) Trade payables and other liabilities
32 (08) Financial liabilities, securities and cash and cash equivalents (net financial debt)
33 (09) Additional disclosures on financial instruments
35 (10) Related parties
CONTENTS
1st quarter
2016/17 2015/16 + / – in %
Revenues and earnings
Revenues € million 1,608 1,629 – 1.3
EBITDA € million 159 107 49.1
EBITDA margin % 9.9 6.6
Depreciation € million – 49 – 50 – 1.2
Operating result € million 110 57 93.1
Operating margin % 6.8 3.5
Net earnings € million 77 41 88.0
Cash flow and investments
Cash flow € million 125 102 23.4
Investments in fixed assets 1 € million 59 73 – 18.6
Investments in financial assets / acquisitions € million 1 0 –
Total investments € million 60 73 – 17.5
Performance
Fixed assets 1 € million 2,875 2,864 0.4
Goodwill € million 1,145 1,145 – 0.0
Working capital € million 1,895 2,051 – 7.6
Capital employed € million 6,028 6,173 – 2.3
Capital structure
Total assets € million 7,963 8,197 – 2.9
Shareholders‘ equity € million 4,540 4,515 0.6
Net financial debt € million 742 829 – 10.5
Equity ratio % 57.0 55.1
Net financial debt as % of equity (gearing) % 16.3 18.4
Shares
Market capitalization on 31 May € million 3,597 2,899 24.1
Total shares issued as of 31 May Millions of shares 204.2 204.2 0.0
Closing price on 31 May € 17.62 14.20 24.1
Earnings per share on 31 May € 0.26 0.10 > 100
Average trading volume / day Thousands of shares 740 2,013 – 63.2
MDAX® closing price on 31 May Points 20,762 20,450 1.5
Performance Südzucker share 1 March to 31 May % 26.9 4.2
Performance MDAX® 1 March to 31 May % 6.9 1.8
Employees 17,922 18,298 – 2.11 Including intangible assets.
TABLE 01
KEY FIGURES
to 31 May 2016
OVERVIEW
Revenues by segment 1st quarter 2016/17
1st quarter
€ million 2016/17 2015/16 + / – in %
Sugar 694 712 – 2.4
Special products 457 445 2.6
CropEnergies 149 181 – 17.6
Fruit 308 291 5.8
Group total 1,608 1,629 – 1.3
TABLE 02
Operating result by segment 1st quarter 2016/17
1st quarter
€ million 2016/17 2015/16 + / – in %
Sugar 22 – 13 –
Special products 46 37 23.7
CropEnergies 19 14 41.6
Fruit 23 19 22.1
Group total 110 57 93.1
TABLE 03
OVERVIEW
First quarter 2016/17
- Consolidated group revenues down 1.3 % from last year at
€ 1,608 (1,629) million.
- Consolidated group operating result rises to € 110 (57) mil-
lion. The higher result is mainly attributable to the sugar
segment, but the other segments also contribute.
- Sugar segment revenues decline on lower volumes, due to
lacking product availability. Moderately higher quota sugar
sales revenues lead to positive operating result:
- Revenues: – 2.4 % to € 694 (712) million
- Operating result: € 22 (– 13) million
- Special products segment reports sharply higher revenues
and operating result due to increased volumes:
- Revenues: + 2.6 % to € 457 (445) million
- Operating result: € 46 (37) million
- CropEnergies segment records substantially improved oper-
ating result despite revenues decline as a result of lower
net material and energy costs:
- Revenues: – 17.6 % to € 149 (181) million
- Operating result: € 19 (14) million
- Fruit segment reports higher revenues and operating result
due to higher volumes:
- Revenues: + 5.8 % to € 308 (291) million
- Operating result: € 23 (19) million
Forecast for full fiscal 2016/17
- Consolidated group revenues still expected at € 6.4 to € 6.6
(2015/16: 6.4) billion.
- Increasing operating result still expected within a range of
between € 250 and € 350 (2015/16: 241) million.
- Capital employed rises; ROCE improves.
1OVERVIEW
Revenues and operating result
1st quarter
2016/17 2015/16 + / – in %
Revenues € million 1,608 1,629 – 1.3
EBITDA € million 159 107 49.1
Depreciation on fixed assets and intangible assets € million – 49 – 50 – 1.2
Operating result € million 110 57 93.1
Result from restructuring / special items € million – 7 – 5 17.5
Result from companies consolidated at equity € million 11 9 18.3
Result from operations € million 114 61 88.8
EBITDA margin % 9.9 6.6
Operating margin % 6.8 3.5
Investments in fixed assets 1 € million 59 73 – 18.6
Investments in financial assets / acquisitions € million 1 0 –
Total investments € million 60 73 – 17.5
Shares in companies consolidated at equity € million 337 317 6.1
Capital employed € million 6,028 6,173 – 2.3
Employees 17,922 18,298 – 2.11 Including intangible assets.
TABLE 04
ECONOMIC REPORT
Südzucker Group business development – Results of operations
REVENUES AND OPERATING RESULT
Consolidated group revenues for the first three months of
fiscal 2016/17 were slightly lower than last year at € 1,608
(1,629) million. The sugar and CropEnergies segments’ reve-
nues declined, while the special products and fruit segments
reported an increase.
As expected, first-quarter consolidated group operating result
was significantly higher than last year at € 110 (57) million.
The higher result was mainly attributable to the sugar seg-
ment, but all other segments also contributed.
RESULT FROM OPERATIONS
Result from operations of € 114 (61) million comprises an oper-
ating result of € 110 (57) million, the result from restructuring
and special items of € – 7 (– 5) million and the earnings con-
tribution from companies consolidated at equity of € 11 (9)
million.
RESULT FROM RESTRUCTURING AND SPECIAL ITEMS
The special products segment’s result from restructuring and
special items of € – 7 (– 5) million was driven by expenses re-
lated to the test phase and/or trial runs of various compo-
nents at its wheat starch plant in Zeitz. CropEnergies’ ex-
penses are for the fixed costs of the temporarily closed
bioethanol factory in Wilton, the same as last year.
RESULT FROM COMPANIES CONSOLIDATED AT EQUITY
Result from companies consolidated at equity was € 11 (9)
million. The sugar segment’s total of € 5 (3) million related
mainly to its share of earnings from British trading company
ED&F Man Holdings Ltd., Studen Group and the Italian
joint-venture distributor Maxi S.r.l. The special products seg-
ment’s total includes € 6 (6) million for its share of earnings
from Hungrana Group’s starch and bioethanol businesses.
2INTERIM MANAGEMENT REPORTECOnOmIC REpORT
Income statement
1st quarter
€ million 2016/17 2015/16 + / – in %
Revenues 1,608 1,629 – 1.3
Operating result 110 57 93.1
Result from restructuring / special items – 7 – 5 17.5
Result from companies consolidated at equity 11 9 18.3
Result from operations 114 61 88.8
Financial result – 12 – 5 > 100.0
Earnings before income taxes 102 56 82.1
Taxes on income – 25 – 15 66.4
Net earnings 77 41 88.0
of which attributable to Südzucker AG shareholders 55 20 > 100
of which attributable to hybrid capital 3 7 – 47.7
of which attributable to other non-controlling interests 19 14 42.2
Earnings per share (€) 0.26 0.10 > 100
TABLE 05
FINANCIAL RESULT
The financial result in the first quarter declined to € – 12
(– 5) million. The net interest result improved to € – 6 (– 8)
million. The change in the financial result to € – 6 (3) million is
due mainly to an impairment charge on a current financial
asset at AGRANA Fruit in Ukraine.
TAXES ON INCOME
Earnings before taxes were reported at € 102 (56) million and
taxes on income totaled € – 25 (– 15) million. The group’s tax
rate was 25 (27) %.
CONSOLIDATED NET EARNINGS
Of the consolidated net earnings of € 77 (41) million, € 55 (20)
million were allocated to Südzucker AG shareholders, € 3 (7)
million to hybrid bondholders and € 19 (14) million to other
non-controlling interests, mainly the co-owners of AGRANA
Group and CropEnergies Group.
EARNINGS PER SHARE
Earnings per share came in at € 0.26 (0.10) for the first quar-
ter of 2016/17. The calculation was based on the time-
weighted average of 204.2 (204.2) million shares outstanding.
3INTERIM MANAGEMENT REPORT
ECOnOmIC REpORT
Cash flow statement
1st quarter
€ million 2016/17 2015/16 + / – in %
Cash flow 125 102 23.4
Increase (–) / decrease (+) in working capital – 253 – 271 – 6.6
Investments in fixed assets
Sugar segment 24 32 – 24.4
Special products segment 29 29 1.8
CropEnergies segment 3 8 – 67.9
Fruit segment 3 4 – 20.9
Total investments in fixed assets 1 59 73 – 18.6
Investments in financial assets / acquisitions 1 0 –
Total investments 60 73 – 17.5
Dividends paid – 5 0 –1 Including intangible assets.
TABLE 06
Investments and financing – financial position
CASH FLOW
Cash flow reached € 125 million, compared to € 102 million
during the same period last year. This translates into 7.8
(6.3) % of revenues.
WORKING CAPITAL
Cash outflow from working capital of € – 253 million was
mainly to settle beet liabilities from the 2015/16 campaign,
which were only partly covered by proceeds from the sugar
inventory selloff.
INVESTMENTS IN FIXED ASSETS
Investments in fixed assets (including intangible assets) to-
taled € 59 (73) million. The sugar segment invested € 24 (32)
million, mainly for replacements, but also on efficiency and
logistics improvements in preparation for expanded produc-
tion after expiry of the minimum beet price and quota regula-
tions on 30 September 2017. The special products segment’s
investments of € 29 (29) million are mainly for construction of
the starch plant in Zeitz, expanding the capacity of the starch
plant in Aschach, Austria, optimizing the BENEO plant in
Oreye, Belgium, and expanding the capacity of the Freiberger
plant in Westhoughton, Great Britain. The Crop Energies seg-
ment invested € 13 (8) million to further optimize its produc-
tion systems. The fruit segment invested € 3 (4) million,
mainly to expand production capacity in the fruit preparations
division.
DEVELOPMENT OF NET FINANCIAL DEBT
The seasonal cash outflow of € – 253 million from working
capital could only be partly financed by the cash inflow of
€ 125 million. This resulted in the typical seasonal increase in
net financial debt, which went from € 555 million on 29 Feb-
ruary 2016 to € 742 million on 31 May 2016, up € 187 million,
taking into consideration total investments of € 60 million and
the distribution of € 5 million.
4INTERIM MANAGEMENT REPORTECOnOmIC REpORT
Balance sheet
€ million 31 May 2016 31 May 2015 + / – in %
Assets
Intangible assets 1,186 1,185 0.1
Fixed assets 2,834 2,825 0.3
Remaining assets 518 508 2.0
Non-current assets 4,538 4,518 0.5
Inventories 1,614 1,777 – 9.1
Trade receivables 941 998 – 5.7
Remaining assets 870 904 – 3.8
Current assets 3,425 3,679 – 6.9
Total assets 7,963 8,197 – 2.9
Liabilities and equity
Equity attributable to shareholders of Südzucker AG 3,205 3,161 1.4
Hybrid capital 653 684 – 4.5
Other non-controlling interests 682 670 1.8
Total equity 4,540 4,515 0.6
provisions for pensions and similar obligations 800 824 – 2.9
Financial liabilities 716 771 – 7.2
Remaining liabilities 276 292 – 5.5
Non-current liabilities 1,792 1,887 – 5.1
Financial liabilities 627 681 – 7.9
Trade payables 403 467 – 13.7
Remaining liabilities 601 647 – 7.1
Current liabilities 1,631 1,795 – 9.1
Total liabilities and equity 7,963 8,197 – 2.9
net financial debt 742 829 – 10.5
Equity ratio in % 57.0 55.1
net financial debt as % of equity (gearing) 16.3 18.4
TABLE 07
NON-CURRENT ASSETS
Since last year’s record date, non-current assets have risen
€ 20 million to € 4,538 (4,518) million. Thus, the carrying
amounts of fixed assets rose € 9 million to 2,834 (2,825) due
to investments. The € 10 million increase in assets to € 518
(508) million relates mainly to the increase of € 337 (317) mil-
lion in shares of at equity consolidated companies. Goodwill
was unchanged and intangible assets were about the same as
last year at € 1,186 (1,185) million.
Balance sheet – assets
5INTERIM MANAGEMENT REPORT
ECOnOmIC REpORT
Employees by segment
1st quarter
31 May 2016 2015 + / – in %
Sugar 7,013 7,215 – 2.8
Special products 4,602 4,401 4.6
CropEnergies 405 429 – 5.7
Fruit 5,903 6,253 – 5.6
Group 17,922 18,298 – 2.1
TABLE 08
CURRENT ASSETS
Current assets were down € 254 million to € 3,425 (3,679)
million, driven mainly by the reduction of € 163 million in
inventories, especially in the sugar segment. The total is now
€ 1,614 (1,777) million. Trade receivables were down € 57
million to € 941 (998) million. The decline of € 34 million in
other assets to € 870 (904) million is mainly due to a re-
duced cash position.
EQUITY
Equity increased to € 4,540 (4,515) million. The equity ratio
came in higher than last year at 57 (55) % as total assets
fell. Südzucker AG shareholders’ equity rose € 44 million to
€ 3,205 (3,161) million. In parallel, other minority interests
rose € 12 million to € 682 (670) million. Hybrid bond hold-
ings fell to € 653 (684) million in the second half of fiscal
2015/16 due to the buyback of hybrid bonds with a face
value of € 32 million.
NON-CURRENT LIABILITIES
Non-current liabilities declined € 95 million to € 1,792 (1,887)
million. Provisions for pensions and similar obligations were
down € 24 million to € 800 (824) million due to a higher dis-
count rate, which rose from 1.75 % on 31 May 2015 to 1.95 %
on 31 May 2016. Financial liabilities were cut € 55 million to
€ 716 (771) million. Other liabilities fell € 16 million to € 276
(292) million.
CURRENT LIABILITIES
Current liabilities were down € 164 million to € 1,631 (1,795)
million. This development followed the decline of € 54 million
in current financial liabilities to € 627 (681) million. In addi-
tion, trade payables dropped € 64 million to € 403 (467).
Other debt, consisting of other provisions, taxes owed and
other liabilities, was reduced by € 46 million to € 601 (647)
million.
NET FINANCIAL DEBT
Net financial debt as of 31 May 2016 were down € 87 million to
€ 742 (829) million, which corresponds to 16 (18) % of equity.
Employees
The number of persons employed by the group (full-time
equivalent) after the end of the first quarter of fiscal 2016/17
was slightly lower than at the same time last year at 17,922
(18,298).
6INTERIM MANAGEMENT REPORTECOnOmIC REpORT
EU price reporting sugar
1 May 2013 to 30 April 2016€/t white sugar
700
600
500
400
300
2013 2014 2015 2016
Source: EU commission, Directorate-General for Agriculture and Rural Development.
D I AG R A M 02
Global market sugar prices
1 June 2013 to 31 May 2016London, nearest forward trading month
650
600
550
500
450
400
350
300
250
200
2013 2014 2015 2016
D I AG R A M 0 1
t Ww. in €/t
t Ww. in USD/t
Sugar segment
Market developments, economic policy, general framework
WORLD SUGAR MARKET
In its world sugar balance estimate released in June 2016,
German market analyst F. O. Licht predicts a deficit in sugar
production for the 2015/16 sugar marketing year (1 October
to 30 September), the first in six years. The shortfall is due to
increased consumption, which will rise to 181.3 (179.0) mil-
lion tonnes, while sugar production will shrink to 174.3 (181.2)
million tonnes, back under 180 million tonnes for the first
time since 2012/13. The result will be a reduction in invento-
ries to 70.4 (80.0) million tonnes of sugar or 38.9 (44.7) % of
one year’s consumption, for the first time in six years.
For the 2016/17 marketing year too, F. O. Licht expects inven-
tories to fall further despite higher production – to 63.7 mil-
lion tonnes or 35 % of one year’s consumption, a level last
seen in the 2010/11 marketing year.
At the beginning of the fiscal year, the world market price for
white sugar went from € 375 €/t to over 400 €/t amid high vol-
atility. At the end of the reporting period, the world market
price for white sugar was 434 €/t, the highest it has been since
2012. Since then the world market price has risen further and
has at times been above 470 €/t.
EU SUGAR MARKET
Following last year’s record harvest, Südzucker substantially
cut back the cultivation area throughout the EU for the current
2015/16 sugar marketing year on account of the re-strictions
on selling non-quota sugar. At the same time, yields from the
2015 campaign were below last year’s record level and in
many parts of Europe even less than the perennial average. As
a result, sugar production in the EU (including isoglucose)
shrank considerably, to about 15.6 (20.3) million tonnes,
which will cause non-quota sugar stocks to contract. Export
licenses for 1.35 million tonnes of non-quota sugar were
granted for the 2015/16 sugar marketing year, the same as
last year.
The EU is a net importer of quota sugar. For preferential im-
ports to rise, the EU price level would have to be at least high
enough to cover the costs of the imported sugar. Quota sugar
inventories are expected to fall further at the end of the
2015/16 sugar marketing year.
According to EU price reporting, the average price for quota
sugar rose slightly in April 2016, to 428 €/t for bulk sugar
(ex works). Last year prices had stagnated at a low level.
Typical practice in the EU is to sign annual contracts for each
sugar marketing year. The current prices reported in the EU
Price Reporting thus mainly reflect the summer 2015 market
price level. The sharply higher world market prices seen since
then – recently even higher than EU prices – has also affected
a minor volume on the spot markets, but the impact on EU
Price Reporting is at the moment minimal.
7INTERIM MANAGEMENT REPORT
ECOnOmIC REpORT
Business performance – Sugar segment
1st quarter
2016/17 2015/16 + / – in %
Revenues € million 694 712 – 2.4
EBITDA € million 35 0 > 100
Depreciation on fixed assets and intangible assets € million – 13 – 13 3.0
Operating result € million 22 – 13 –
Result from restructuring / special items € million – 1 0 –
Result from companies consolidated at equity € million 5 3 54.3
Result from operations € million 26 – 10 –
EBITDA margin % 5.0 0.1
Operating margin % 3.1 – 1.8
Investments in fixed assets 1 € million 24 32 – 24.4
Investments in financial assets / acquisitions € million 1 0 –
Total investments € million 25 32 – 21.9
Shares in companies consolidated at equity € million 274 256 6.9
Capital employed € million 3,239 3,415 – 5.2
Employees 7,013 7,215 – 2.81 Including intangible assets.
TABLE 09
ENERGY MARKET
After the price of oil dropped to a fourteen-year low of 25
USD/barrel in mid-January 2016, prices trended higher for
several weeks during the first quarter 2016/17 reporting pe-
riod. The markets increasingly priced in supply risks; mainly
significantly declining production in the United States. In ad-
dition, demand remained robust, as manifested by record
crude oil imports in China. The devaluation of the US dollar
and a massive decline of 60 % in short sales since the begin-
ning of the year were ultimately the main price drivers.
For the first time in a long time, the steady decline in Ameri-
can crude oil production to September 2014 levels caused
market players to believe that oil market supply and demand
would be balanced no later than 2017. Oil was trading at 49
USD/barrel on 31 May 2016.
At the beginning of the first quarter of 2016/17, the price of
gas trended sideways at a very low level. However, relatively
low temperatures in Western Europe and global geopolitical
crises caused the price to increase sharply within a few days
toward the middle/end of May. Prices were supported by main-
tenance activities in North Sea gas fields, as well as higher
crude prices, which also impacted other energy sources.
EU SUGAR POLICIES, WTO NEGOTIATIONS AND FREE
TRADE AGREEMENTS
There were no material changes during the first quarter to
the legal and political general conditions related to EU sugar
policies, WTO negotiations and free trade agreements than
those outlined on pages 61 and 62 of the 2015/16 annual
report (consolidated management report, business report,
sugar segment).
8INTERIM MANAGEMENT REPORTECOnOmIC REpORT
Business performance
REVENUES AND OPERATING RESULT
The sugar segment’s revenues fell to € 694 (712) million dur-
ing the reporting period. The lower revenues were driven
mainly by lower non-quota sugar volumes due to the reduced
harvest in 2015. Quota sugar sales revenues were moderately
higher than last year.
In the first quarter of fiscal 2016/17, the sugar segment re-
ported an operating result of € 22 million, which compares to
an operating loss of € – 13 million during the same quarter
last year. This was mainly driven by a moderate increase in
quota sugar sales revenues at the beginning of the 2015/16
sugar marketing year in October 2015, and was further rein-
forced since the beginning of the year by an overall positive
marketing environment and still higher spot market quota
sugar sales revenues.
RESULT FROM COMPANIES CONSOLIDATED AT EQUITY
The result from companies consolidated at equity in the sugar
segment was € 5 (3) million, most of which relates to the
earnings contribution from the British trading company ED&F
Man Holdings Ltd., but also the earnings contributions from
Studen Group and Italian joint-venture distributor Maxi S.r.l.
BEET CULTIVATION AND CAMPAIGN
Südzucker Group expanded its beet cultivation area by almost
10 % in 2016, to about 384,000 (350,259) ha. Last year, many
beet growers had to limit production because of a carryover.
This year, planting began for the most part as early as in pre-
vious years, amid average to excellent planting conditions.
Thanks to adequate rain starting in the second half of May,
beet development was excellent in most regions.
INVESTMENTS IN FIXED ASSETS
Investments of € 24 (32) million in the first three months were
mainly for replacements, efficiency improvements – for ex-
ample the beet yard projects at the French Roye and Etrépagny
factories –, product development, such as nibs sugar in Tie-
nen, Belgium and jam sugar concentrate in Rain. These initia-
tives are also key components of preparations for the expiry
of minimum beet price and sugar quota regulations effective
30 September 2017. Other important investments were for
energy savings; for example, the steam turbine in Zeitz and
the sugar drying system in Tienen, as well as environment-
related investments for wastewater treatment and exhaust
gas scrubbing systems at locations such as Cagny, France, and
Tienen. Also noteworthy are logistics and infrastructure pro-
jects such as the ones at the Plattling and Rain factories, as
well as in Tienen.
9INTERIM MANAGEMENT REPORT
Economic rEport
Business performance – Special products segment
1st quarter
2016/17 2015/16 + / – in %
Revenues € million 457 445 2.6
EBITDA € million 64 56 14.0
Depreciation on fixed assets and intangible assets € million – 18 – 19 – 4.7
Operating result € million 46 37 23.7
Result from restructuring / special items € million – 3 0 > 100
Result from companies consolidated at equity € million 6 6 – 3.4
Result from operations € million 49 43 14.4
EBITDA margin % 14.1 12.7
Operating margin % 10.1 8.4
Investments in fixed assets 1 € million 29 29 1.8
Investments in financial assets / acquisitions € million 0 0 –
Total investments € million 29 29 1.8
Shares in companies consolidated at equity € million 61 60 3.0
Capital employed € million 1,461 1,423 2.7
Employees 4,602 4,401 4.61 Including intangible assets.
TABLE 10
Special products segment
REVENUES AND OPERATING RESULT
The special products segment’s revenues rose from € 445 to
457 million during the first quarter 2016/2017. This was attrib-
utable to the continuing positive volume developments, al-
though overall sales revenues were weaker.
The segment’s operating result also extended its positive
trend from the second half of the previous fiscal year. Rising
volumes in all divisions and steady low raw material costs
more than offset lower sales revenues and led to an improved
operating result of € 46 (37) million.
RESULT FROM RESTRUCTURING AND SPECIAL ITEMS
The result from restructuring and special items in the amount
of € – 3 (0) million included expenses from the test phase and/
or trial operation of individual components at the wheat
starch plant in Zeitz.
RESULT FROM COMPANIES CONSOLIDATED AT EQUITY
Result from companies consolidated at equity totaling € 6
(6) million was primarily attributable to the share of earnings
from starch and bioethanol activities of Hungrana Group.
INVESTMENTS IN FIXED ASSETS
The special products segment invested € 29 (29) million. The
BENEO division’s capital spending was mainly on efficiency
improvements e.g. the production process at Orafti in Oreye,
Belgium. The starch business unit’s investments were mostly
for construction of the wheat starch plant in Zeitz and the
capacity expansion in Aschach, Austria. The Freiberger divi-
sion focused its investments on expanding the production ca-
pacity at the site in Westhoughton, Great Britain.
10INTERIM MANAGEMENT REPORTECOnOmIC REpORT
EU bioethanol volume balance
million m3 2016e 2015 2014
Opening balance 2.1 2.0 2.0
production 7.4 7.3 7.3
Import 0.7 0.7 0.7
Consumption – 7.6 – 7.7 – 7.8
Export – 0.2 – 0.2 – 0.2
Closing balance 2.4 2.1 2.0
Source: F. O. Licht. Data estimated of EU biothanol volume balance, June 2016.
TABLE 11
Price trend for European ethanol and gasoline
1 June 2013 to 31 May 2016€/m3
700
600
500
400
300
200
2013 2014 2015 2016
Source: Reuters Thomson Eikon.
D I AG R A M 03
200
300
400
500
600
700
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Premium gasoline Ethanol
CropEnergies segment
Market developments, economic policy, general framework
ETHANOL MARKET
Global bioethanol production rose 3.4 % to 117.5 million m³
in 2015. The increase was driven by higher fuel grade ethanol
production, which is up 3.9 % to 98.3 million m³. Global
bioethanol production in 2016 is expected to remain nearly
constant at 117.6 million m³. Of the total produced, 99.0 mil-
lion m³ is expected to be fuel grade ethanol.
Bioethanol production is expected to come in at 58.0 million m³
in the United States in 2016, and net exports are forecast to
jump 12.2 % to 3.0 million m³. One-month futures for ethanol
on the Chicago Board of Trade (CBOT) was 390 USD/m³ at
the end of May 2016, thus significantly below the level of
€ 330 million m³ at the beginning of March 2016. The sharp
rise in the price of oil helped boost prices. At the end of May
2016, American West Texas Intermediate (WTI) was trading at
almost 50 USD/barrel, over 40 % higher than at the beginning
of March 2016.
In sugar marketing year 2016/17, it is expected that Brazilian
bioethanol production will fall about 1.6 % to 30.0 million m³.
Despite domestic demand falling 4.6 % to 28.7 million m³, it
is expected that net exports will plunge 36.7 % to 1.0 million
m³. Last year during the same period inventories were
sharply lower. Brazilian ethanol prices have largely adjusted
to the US level, trading at the equivalent of about 400 €/m³ at
the end of May 2016. But with the recent renewed strength of
the Brazilian real, they are significantly below the 490 €/m³
level seen at the beginning of March 2016. The decline is at-
tributable to the beginning of the new cane sugar harvest,
which has progressed quite well to date.
In Europe, ethanol prices rose sharply during the reporting
period and at the end of May 2016, ethanol was trading at
about 560 €/m³ FOB Rotterdam, significantly higher than at
the beginning of March 2016, when the price was about
490 €/m³. This development is attributable to a seasonal in-
crease in demand. Speculation about reduced supply due to
the shutdown of several European bioethanol plants also con-
tributed to the rising prices.
In view of falling gasoline consumption and a lack of stimulus
from higher blending requirements, expectations are that the
EU’s fuel grade ethanol consumption will fall a further 2.8 %
to 5.1 (5.2) million m³ in 2016. This demand should be largely
covered by European production, which is expected to reach
about 5.2 (5.1) million m³.
11INTERIM MANAGEMENT REPORT
ECOnOmIC REpORT
1 One bushel is equal to 27.261 kg.
2016 due to reduced supplies. In euro terms, the price rose
from 290 to 360 €/t. Rapeseed meal prices followed this trend
and rose from 180 €/t at the beginning of March 2016 to 240
€/t at the end of May 2016.
MANDATORY BLEND RATIOS IN BELGIUM
In Belgium, mandatory blend ratios are slated to rise from the
current 4 % by volume to 8.5 % by volume of bioethanol ef-
fective 1 January 2017. A notice regarding the introduction of
E10 is expected to be published in Belgium’s official journal
shortly.
MANDATORY BLEND RATIOS IN GREAT BRITAIN
It is especially important that the Renewable Transport Fuels
Obligation be enacted soon and that higher blend ethanol
(E10) be introduced in Great Britain, if the plant in Wilton is to
operate full-time. Regardless of the EU referendum, CropEner-
gies expects that Great Britain will raise the blend ratio tar-
gets for renewable energies in order to accelerate the decar-
bonization of the transport sector and protect local jobs and
investments.
RENEWABLE ENERGY DIRECTIVE, FUEL QUALITY DIREC-
TIVE, EUROPEAN CLIMATE AND ENERGY PACKAGE 2030
There were no material changes in the legal and political
general conditions associated with the renewable energy di-
rective, fuel quality directive, and the climate and energy
package 2030 during the reporting period. They remain as de-
scribed on pages 75 to 76 of the 2015/16 annual report (con-
solidated management report, business report, Crop Energies
segment).
Business performance
REVENUES AND OPERATING
The CropEnergies segment’s revenues were down € 32 million
year-over-year to € 149 (181) million in the first quarter of
2016/17. In addition to lower ethanol sales revenues, the
Ensus volumes that were still included last year factored into
this development.
Operating profit on the other hand rose sharply, to € 19 (14)
million. Lower ethanol sales revenues were also offset by lower
raw material and energy costs. In addition, charges from the
scheduled maintenance at the factory in Wanze, Belgium, were
included during last year’s first quarter.
Fuel grade ethanol consumption in Germany is expected to
decline 6.3 % in 2016 to 1.4 million m³. This is caused by the
continuing slight decline in gasoline consumption, as well as
the current less-than-ambitious greenhouse gas reduction
target of only 3.5 % by weight. In fact however, preliminary
consumption data for January to March 2016 shows a 3.0 %
rise in volume to about 0.3 million m³ of fuel grade ethanol.
During the same period, gasoline volume rose 1.6 % to 4.2
million tonnes. The volume of E10 in the gasoline market fell
to 0.6 million tonnes, which is equivalent to a market share
of 13.1 (14.6) %.
GRAIN MARKET
In its 10 June 2016 estimate, the US Department of Agricul-
ture (USDA) forecast that world grain record production (ex-
cluding rice) will reach 2,034 million tonnes in 2016/17
(+ 2.3 %). Grain consumption is expected to come in at 2,022
million tonnes (+ 2.9 %), while inventories are expected to rise
further to 497 (486) million tonnes.
The EU Commission is forecasting that the EU’s grain harvest
will rise about 0.8 % to € 313 million for the 2016/17 grain
marketing year. The volume of grain harvested is expected to
remain above average, once again significantly exceeding
consumption of 284 million tonnes. At 61 %, the lion’s share
of grain consumption is attributable to feeding animals. The
EU continues to be a major contributor to world market grain
supplies with net exports of 27 (26) million tonnes. It is ex-
pected that only 12 million tonnes of grain will be used to pro-
duce bioethanol, and about one-third of this volume will again
flow back to the market as food and animal feed thus reduc-
ing soya imports from South America.
European wheat prices on the Euronext in Paris slipped from
about 145 €/t at the beginning of March 2016 to about 170 €/t
at the end of May 2016. This is mainly due to stronger export
demand and a relatively high premium for the new 2016/17
wheat harvest.
The USDA is forecasting another record harvest of 324 (313)
million tonnes of soybeans for the 2016/17 marketing year.
However, due to the significant rise in global consumption to
328 (318) million tonnes, global inventories are expected to
shrink to 66 (72) million tonnes. One-month futures for soy-
beans on the CBOT rose from 8.50 USD/bushel 1 at the begin-
ning of March 2016 to about 11 USD/bushel at the end of May
12INTERIM MANAGEMENT REPORTECOnOmIC REpORT
Business performance – CropEnergies segment
1st quarter
2016/17 2015/16 + / – in %
Revenues € million 149 181 – 17.6
EBITDA € million 28 23 26.0
Depreciation on fixed assets and intangible assets € million – 9 – 9 1.2
Operating result € million 19 14 41.6
Result from restructuring / special items € million – 3 – 5 – 26.0
Result from companies consolidated at equity € million 0 0 –
Result from operations € million 16 9 80.5
EBITDA margin % 18.9 12.3
Operating margin % 13.0 7.6
Investments in fixed assets 1 € million 3 8 – 67.9
Investments in financial assets / acquisitions € million 0 0 –
Total investments € million 3 8 – 67.9
Shares in companies consolidated at equity € million 2 2 5.9
Capital employed € million 500 519 – 3.6
Employees 405 429 – 5.71 Including intangible assets.
TABLE 12
RESULT FROM RESTRUCTURING AND SPECIAL ITEMS
The result from restructuring and special items of € – 3 (– 5)
million was, as already in the previous year, primarily related
to the fixed costs of the temporarily closed bioethanol factory
in Wilton, Great Britain.
INVESTMENTS IN FIXED ASSETS
The segment invested in the first quarter € 3 (8) million,
mainly to broaden its product portfolio and to improve pro-
duction efficiencies and logistics processes at its Belgian and
German sites.
13INTERIM MANAGEMENT REPORT
ECOnOmIC REpORT
Fruit segment
Market developments, economic policy, general framework
TARGET MARKETS
While EU markets remain a challenge for fruit preparations,
non-European markets – especially Asia, Latin America, North
Africa and the Middle East – are reporting strong growth. In
saturated markets such as the EU and the United States, there
is a noticeable increase in consumption of yogurt without fruit
preparations. The ice cream, food services and baked goods
consumer markets should be growth markets in the medium
to long-term. The Asian markets, especially China, are show-
ing strong growth due to numerous product developments.
The market environment in the Latin American region is also
robust.
Over the past few weeks, apple juice concentrate prices in
Europe have stabilized thanks to strong demand for the
transition period from summer to fall 2016, combined with
supply shortages. The increased customer demand indicates
that most bottlers are likely experiencing shortages and will
barely have enough product to last until the beginning of the
new 2016 harvest. Due to reduced volumes in the world’s
largest market, North America, Chinese prices are under pres-
sure. The ability of Europe to compete in the North American
market during the new processing season will be largely de-
termined by the rate of exchange between the US dollar and
the euro.
Berry juice concentrates for the major fruits from the 2015
harvest are completely sold out. There are currently no note-
worthy marketing or price risks. The new berry juice concen-
trates season began in the second week of June as work
started on processing strawberry juice concentrates. Volumes
were somewhat low.
RAW MATERIALS MARKETS
In the fruit preparations division, harvested volumes at the
beginning of the year in Mexico, Morocco and Egypt for the
primary fruit strawberries were excellent, although prices
varied from region to region.
In general, it is expected that relevant fruit prices will decline,
since harvests are expected to be excellent and the weak
global economy will likely exert pressure on the markets.
The US dollar to euro exchange rate has stabilized over the
past few months and will therefore play a less important role
this year.
The dry spell during the summer months in 2015 in Europe led
to lower quality and volumes for berry fruits, which impacted
the fruit juice concentrates division. Due to a scarcity of raw
materials in spring 2015 berry prices rose continually, both in
the processing area and for fresh fruits.
Toward the end of the 2015 apple processing season, apple
prices fell sharply, a trend that continued in spring 2016. Strict
monitoring of the trade embargo that prohibits the export of
Polish apples to Russia caused significant price pressure in the
European market.
A frost in May 2016 in the Steiermark, Austria, Western Hun-
gary and Slovenia regions will probably significantly reduce
the availability of raw materials in these regions; however, an
exact estimate cannot be made until completion of the June
fruit assessment.
Currently apple prices are about half what they were during
the 2015 processing season.
Business performance
REVENUES AND OPERATING RESULT
The fruit segment’s revenues also rose during the reporting
period, to € 308 (291) million. In addition to a recovery in
sales revenues for fruit juice concentrates, the steady positive
volume trend for fruit juice preparations were contributing
factors.
The operating result also rose, to € 23 (19) million. Margins for
fruit juice concentrates recovered due to the positive sales
revenue developments. For fruit juice concentrates, lower
sales revenues were more than offset by a corresponding
slight decline in costs and steadily growing volume.
14INTERIM MANAGEMENT REPORTECOnOmIC REpORT
Business performance – Fruit segment
1st quarter
2016/17 2015/16 + / – in %
Revenues € million 308 291 5.8
EBITDA € million 32 28 14.4
Depreciation on fixed assets and intangible assets € million – 9 – 9 – 2.3
Operating result € million 23 19 22.1
Result from restructuring / special items € million 0 0 – 100.0
Result from companies consolidated at equity € million 0 0 –
Result from operations € million 23 19 23.4
EBITDA margin % 10.3 9.5
Operating margin % 7.5 6.5
Investments in fixed assets 1 € million 3 4 – 20.9
Investments in financial assets / acquisitions € million 0 0 –
Total investments € million 3 4 – 20.9
Shares in companies consolidated at equity € million 0 0 –
Capital employed € million 828 816 1.5
Employees 5,903 6,253 – 5.61 Including intangible assets.
TABLE 13
INVESTMENTS IN FIXED ASSETS
Investments in fixed assets in the first quarter totaled € 3 (4)
million. The fruit preparations division invested and carried
out replacement investments in capacity expansions, which
included among other things the installation of another pro-
duction line at the new fruit preparations plant in the United
States. The fruit juice concentrates division prioritized re-
placement investments as well as investments deriving from
market requirements.
15INTERIM MANAGEMENT REPORT
ECOnOmIC REpORT
EVENTS AFTER THE BALANCE SHEET DATE
There have been no significant events since 31 May 2016 that
would have a material impact on the company’s assets, finan-
cial position or results.
RISKS AND OPPORTUNITIES As an international company, Südzucker Group is exposed to
macroeconomic, industry-specific and business opportunities
and risks. Information about the group’s risk management
system, risks and potential opportunities is provided in the
2015/16 annual report under “Risk management” on pages 86
to 97, and in the “Business report” as part of segment reporting.
The vote by the majority of the British population for Great
Britain to exit the European Union (Brexit) harbors additional
risks for Südzucker. These relate to sugar volumes associated
with the distributor Südzucker United Kingdom Limited as
well as production and sales at Freiberger and PortionPack
Europe in Great Britain. We are currently unable to assess the
indirect consequences of future economic developments, ei-
ther in Great Britain or the EU, nor the risks related to
amended legal and political general conditions.
Taking into account all known facts, we have not identified
any risks, either individually or as a whole, that threaten the
continued existence of Südzucker Group.
OUTLOOK
Group performance
We continue to expect group consolidated revenues of € 6.4 to
6.6 (2015/16: 6.4) billion in fiscal 2016/17. We expect the
sugar segment’s revenues to remain the same as last year.
The special products segment’s revenues are expected to be
slightly higher. We expect the CropEnergies segment’s reve-
nues to range between € 565 and 625 (2015/16: 658) million
and the fruit segment’s to rise significantly.
We expect the operating result to increase further. It should
range between € 250 and 350 (2015/16: 241) million, driven
mainly by better sugar segment results. After the records set
in 2015/16, the company expects a significant retreat in the
special products and CropEnergies segments. We expect a
year-over-year increase in the fruit segment.
We expect capital employed to rise slightly. Based on the in-
creased operating result, we expect ROCE to improve
(2015/16: 4.2 %).
Total investments for fiscal 2016/17 are expected to be € 300
to 350 (2015/16: 371) million.
The operating result for the second quarter of the current
2016/17 fiscal year is expected to be significantly higher than
last year at the same time.
16INTERIM MANAGEMENT REPORTEVEnTS AFTER THE BAL AnCE SHEET DATE | RISKS AnD OppORTUnITIES | OUTLOOK
Sugar segment
We are expecting the sugar segment’s revenues to stabilize.
Average sugar sales revenues for the full fiscal year should be
higher than last year. This should offset the missing revenue
contributions resulting from cancellation of the joint sales
venture with Mauritius and termination of raw sugar refining
at the site in Marseille, France.
Following an operating loss in fiscal 2015/16, we are expect-
ing a positive operating result for the current fiscal year be-
cause of the anticipated higher sales revenues that will be
generated over the course of the year. Here we also expect a
contribution from higher loading of the sugar factories during
the 2016 campaign in the second half of the fiscal year. Cost
saving programs will continue to be executed as planned.
Capital employed is expected to remain stable, and after the
operating loss last year, ROCE is expected to be positive again
(2015/16: – 2.6 %).
Special products segment
We expect the special products segment’s revenues to rise
slightly. Our forecast predicts a significant decline in the oper-
ating result compared to last year’s very high level. This takes
into consideration among other things the expected decline in
ethanol average sales revenues during the year, as well as
charges from the startup of the new starch plant in Zeitz,
which will start operations in the second quarter of 2016/17.
ROCE (2015/16: 11.9 %) will go down as capital employed rises
slightly and the operating result contribution remains low.
CropEnergies segment
CropEnergies firmed up its revenue forecast to a range of
€ 565 to 625 (2015/16: 658) million. The bioethanol market
price situation has improved considerably since May 2016;
nevertheless, wide fluctuations are still expected. Assuming
average bioethanol prices that are lower than last year’s ex-
cellent levels, CropEnergies now expects an operating result
in a range from € 50 to 80 (2015/16: 87) million in fiscal
2016/17. In addition, a result of restructuring and special
items of up to € – 16 million is expected.
On 17 May 2016, CropEnergies announced that it would re-
start the bioethanol plant in Wilton, Great Britain, in July
2016. The factory has been shut down since February 2015.
How long the plant operates and the result it generates will
also impact revenues and earnings. However, the correspond-
ing impact on the forecast has not yet been considered.
Capital employed will remain steady and the operating result
will decline, so ROCE (2015/16: 17.7 %) is expected to drop.
Fruit segment
For the fruit segment, we expect revenues to rise sharply and
a higher operating result than last year. We expect the fruit
preparations division’s revenues to increase due to rising vol-
umes. The excellent supply situation for fruits will result in a
stable operating result development. In the fruit juice concen-
trates division, higher revenues will be driven by the expected
sales revenue increase, which will also generate a higher oper-
ating result.
Capital employed is expected to rise moderately, and the oper-
ating result is also expected to increase, so ROCE (2015/16:
7.5 %) is expected to be higher than last year.
17INTERIM MANAGEMENT REPORT
OUTLOOK
1st quarter
€ million 2016/17 2015/16 + / – in %
Income statement
Revenues 1,608.2 1,628.8 – 1.3
Change in work in progress and finished goods inventories and internal costs capitalized – 323.4 – 379.1 – 14.7
Other operating income 19.0 15.8 20.3
Cost of materials – 775.9 – 759.9 2.1
Personnel expenses – 196.2 – 203.0 – 3.3
Depreciation – 50.8 – 51.0 – 0.4
Other operating expenses – 177.7 – 200.4 – 11.3
Result from companies consolidated at equity 11.0 9.3 18.3
Result from operations 114.2 60.5 88.8
Financial income 12.7 9.4 35.1
Financial expense – 24.9 – 13.9 79.1
Earnings before income taxes 102.0 56.0 82.1
Taxes on income – 25.3 – 15.2 66.4
Net earnings 76.7 40.8 88.0
of which attributable to Südzucker AG shareholders 54.1 20.8 > 100
of which attributable to hybrid capital 3.4 6.5 – 47.7
of which attributable to other non-controlling interests 19.2 13.5 42.2
Earnings per share (€) 0.26 0.10 > 100
COMPREHENSIVE INCOME
1 March to 31 May 2016
18INTERIM CONSOLIDATED FINANCIAL STATEMENTSCOmPRehenSive inCOme
1st quarter
€ million 2016/17 2015/16 + / – in %
Statement of other comprehensive income
Net earnings 76.7 40.8 88.0
market value of hedging instruments (cash flow hedge) after deferred taxes 1.6 – 3.5 –
market value of securities (available for sale) after deferred taxes 0.0 – 0.1 – 100.0
exchange differences on net investments in foreign operations after deferred taxes – 0.3 – 0.2 50.0
Foreign currency translation differences – 2.3 20.0 –
Share from companies consolidated at equity – 5.4 3.3 –
Income and expenses to be recognized in the income statement in the future – 6.4 19.5 –
Remeasurement of defined benefit pension plans and similar obligations after deferred taxes 0.0 0.0 –
Income and expenses to not be recognized in the income statement in the future – 0.0 – 0.0 –
Other comprehensive income / loss – 6.4 19.5 –
Comprehensive income 70.3 60.3 16.6
of which attributable to Südzucker AG shareholders 46.5 36.4 27.7
of which attributable to hybrid capital 3.4 6.5 – 47.7
of which attributable to other non-controlling interests 20.4 17.4 17.2
TABLE 14
19INTERIM CONSOLIDATED FINANCIAL STATEMENTS
COmPRehenSive inCOme
1st quarter
€ million 2016/17 2015/16 + / – in %
net earnings 76.7 40.8 88.0
Depreciation and amortization of intangible assets, fixed assets and other investments 50.8 51.0 – 0.4
Decrease (–) / increase (+) in non-current provisions and deferred tax liabilities and increase (–) / decrease (+) in deferred tax assets 5.5 6.5 – 15.4
Other income (–) / expenses (+) not affecting cash – 7.7 3.2 –
Cash flow 125.3 101.5 23.4
Gain (–) / Loss (+) on disposal of items included in non-current assets and of securities 0.1 0.8 – 87.5
Decrease (–) / increase (+) in current provisions – 4.3 – 8.4 – 48.8
increase (–) / Decrease (+) in inventories, receivables and other current assets 166.0 244.3 – 32.1
Decrease (–) / increase (+) in liabilities (excluding financial liabilities) – 414.5 – 506.5 – 18.2
Increase (–) / Decrease (+) in working capital – 252.8 – 270.6 – 6.6
I. Net cash flow from operating activities – 127.4 – 168.3 – 24.3
investments in fixed assets and intangible assets – 59.1 – 72.6 – 18.6
investments in financial assets – 0.8 0.0 –
Investments – 59.9 – 72.6 – 17.5
Cash received on disinvestments 6.5 0.0 –
Cash received on disposal of non-current assets 0.5 0.6 – 16.7
Cash paid (–) / received (+) for the purchase / sale of other securities 0.1 – 0.3 –
II. Cash flow from investing activities – 52.8 – 72.3 – 27.0
CASH FLOW STATEMENT
1 March to 31 May 2016
20INTERIM CONSOLIDATED FINANCIAL STATEMENTSCASh FLOw STATemenT
1st quarter
€ million 2016/17 2015/16 + / – in %
Dividends paid – 5.0 0.0 –
Repayment (–) / issuance (+) of commercial papers 94.0 135.0 – 30.4
Other repayment (–) / refund (+) of financial liabilities 90.1 45.5 98.0
Repayment (–) / Refund (+) of financial liabilities 184.1 180.5 2.0
III. Cash flow from financing activities 179.1 180.5 – 0.8
Change in cash and cash equivalent (total of I., II. and III.) – 1.1 – 60.1 – 98.2
Change in cash and cash equivalents
due to exchange rate changes – 1.3 2.2 –
due to changes in entities included in consolidation 0.0 0.0 –
Decrease (–) / Increase (+) in cash and cash equivalents – 2.4 – 57.9 – 95.9
Cash and cash equivalents at the beginning of the period 459.4 535.7 – 14.2
Cash and cash equivalents at the end of the period 457.0 477.8 – 4.4
Dividends received from companies consolidated at equity / other participations investments 2.3 15.6 – 85.3
interest receipts 2.5 8.2 – 69.5
interest payments – 20.5 – 21.5 – 4.7
income taxes paid – 21.2 – 22.9 – 7.4
TABLE 15
21INTERIM CONSOLIDATED FINANCIAL STATEMENTS
CASh FLOw STATemenT
€ million 31 May 2016 31 May 2015 + / – in % 29 February 2016 + / – in %
Assets
intangible assets 1,186.1 1,184.5 0.1 1,188.9 – 0.2
Fixed assets 2,834.4 2,824.7 0.3 2,824.7 0.3
Shares in companies consolidated at equity 336.7 317.2 6.1 333.3 1.0
Other investments 22.6 21.9 3.2 21.8 3.7
Securities 18.7 20.1 – 7.0 18.6 0.5
Other assets 12.7 15.8 – 19.6 13.6 – 6.6
Deferred tax assets 127.2 133.8 – 4.9 133.2 – 4.5
Non-current assets 4,538.4 4,518.0 0.5 4,534.1 0.1
inventories 1,614.3 1,776.6 – 9.1 1,897.2 – 14.9
Trade receivables 941.1 998.3 – 5.7 782.8 20.2
Other assets 245.6 255.4 – 3.8 298.2 – 17.6
Current tax receivables 40.9 45.1 – 9.3 36.0 13.6
Securities 125.7 125.7 0.0 125.7 0.0
Cash and cash equivalents 457.0 477.8 – 4.4 459.4 – 0.5
Current assets 3,424.6 3,678.9 – 6.9 3,599.3 – 4.9
Total assets 7,963.0 8,196.9 – 2.9 8,133.4 – 2.1
BALANCE SHEET
31 May 2016
22INTERIM CONSOLIDATED FINANCIAL STATEMENTSBAL AnCe SheeT
€ million 31 May 2016 31 May 2015 + / – in % 29 February 2016 + / – in %
Liabilities and shareholders’ equity
equity attributable to shareholders of Südzucker AG 3,204.9 3,161.3 1.4 3,158.4 1.5
hybrid capital 653.1 683.9 – 4.5 653.1 0.0
Other non-controlling interests 681.7 669.5 1.8 661.4 3.1
Total equity 4,539.7 4,514.7 0.6 4,472.9 1.5
Provisions for pensions and similar obligations 799.6 823.7 – 2.9 797.9 0.2
Other provisions 98.9 109.9 – 10.0 103.0 – 4.0
Financial liabilities 715.7 771.1 – 7.2 733.8 – 2.5
Other liabilities 15.9 20.4 – 22.1 15.5 2.6
Tax liabilities 98.9 79.3 24.7 98.6 0.3
Deferred tax liabilities 62.7 83.0 – 24.5 62.0 1.1
Non-current liabilities 1,791.7 1,887.4 – 5.1 1,810.8 – 1.1
Other provisions 204.6 222.0 – 7.8 208.7 – 2.0
Financial liabilities 627.3 681.2 – 7.9 424.6 47.7
Trade payables 402.7 466.6 – 13.7 801.1 – 49.7
Other liabilities 338.0 335.3 0.8 354.7 – 4.7
Current tax liabilities 59.0 89.7 – 34.2 60.6 – 2.6
Current liabilities 1,631.6 1,794.8 – 9.1 1,849.7 – 11.8
Total liabilities and equity 7,963.0 8,196.9 – 2.9 8,133.4 – 2.1
net financial debt 741.6 828.7 – 10.5 554.7 33.7
equity ratio 57.0 55.1 55.0
net financial debt as % of equity (gearing) 16.3 18.4 12.4
TABLE 16
23INTERIM CONSOLIDATED FINANCIAL STATEMENTS
BAL AnCe SheeT
Other equity accounts
€ million
Outstanding subscribed capital
Nominal value own shares Capital reserve Other reserves
Market value of hedging
instruments (cash flow
hedge)
Market value of securities
(available for sale)
Exchange differences on
net investments in foreign
operations
Accumulated exchange
differcences
Share from companies
consolidated at equity
Equity of Südzucker
shareholders Hybrid capital
Other non-controlling
interests Total equity
1 March 2015 204.2 0.0 1,614.9 1,330.7 – 1.5 2.2 – 10.4 – 19.5 4.1 3,124.7 683.9 652.2 4,460.8
net earnings 20.8 20.8 6.5 13.5 40.8
Other comprehensive income / loss before taxes 0.0 – 3.1 – 0.1 – 0.2 13.7 4.1 14.4 3.3 17.7
Taxes on other comprehensive income 0.0 1.2 0.0 0.0 1.2 0.6 1.8
Comprehensive income 20.8 – 1.9 – 0.1 – 0.2 13.7 4.1 36.4 6.5 17.4 60.3
Distributions 0.0 0.0 – 6.5 0.0 – 6.5
Capital increase / decrease 0.0 0.0 0.0 0.0 0.0 0.0
Buyback of hybrid capital 0.0 0.0 0.0 0.0
Other changes 0.2 0.2 – 0.1 0.1
31 May 2015 204.2 0.0 1,614.9 1,351.7 – 3.4 2.1 – 10.6 – 5.8 8.2 3,161.3 683.9 669.5 4,514.7
1 March 2016 204.2 0.0 1,614.9 1,424.2 – 5.1 1.6 – 14.2 – 67.4 0.2 3,158.4 653.1 661.4 4,472.9
net earnings 54.1 54.1 3.4 19.2 76.7
Other comprehensive income / loss before taxes 0.0 – 0.4 – 0.1 – 0.4 – 2.0 – 5.1 – 8.0 1.9 – 6.1
Taxes on other comprehensive income 0.0 0.3 0.0 0.1 0.4 – 0.7 – 0.3
Comprehensive income 54.1 – 0.1 – 0.1 – 0.3 – 2.0 – 5.1 46.5 3.4 20.4 70.3
Distributions 0.0 0.0 – 3.4 0.0 – 3.4
Capital increase / decrease 0.0 0.0 0.0 0.0 0.0 0.0
Buyback of hybrid capital 0.0 0.0 0.0 0.0
Other changes 0.0 0.0 – 0.1 – 0.1
31 May 2016 204.2 0.0 1,614.9 1,478.3 – 5.2 1.5 – 14.5 – 69.4 – 4.9 3,204.9 653.1 681.7 4,539.7
TABLE 17
CHANGES IN SHAREHOLDERS’ EQUITY
1 March to 31 May 2016
24INTERIM CONSOLIDATED FINANCIAL STATEMENTSChAnGeS in ShARehOLDeRS’ equiT y
Other equity accounts
€ million
Outstanding subscribed capital
Nominal value own shares Capital reserve Other reserves
Market value of hedging
instruments (cash flow
hedge)
Market value of securities
(available for sale)
Exchange differences on
net investments in foreign
operations
Accumulated exchange
differcences
Share from companies
consolidated at equity
Equity of Südzucker
shareholders Hybrid capital
Other non-controlling
interests Total equity
1 March 2015 204.2 0.0 1,614.9 1,330.7 – 1.5 2.2 – 10.4 – 19.5 4.1 3,124.7 683.9 652.2 4,460.8
net earnings 20.8 20.8 6.5 13.5 40.8
Other comprehensive income / loss before taxes 0.0 – 3.1 – 0.1 – 0.2 13.7 4.1 14.4 3.3 17.7
Taxes on other comprehensive income 0.0 1.2 0.0 0.0 1.2 0.6 1.8
Comprehensive income 20.8 – 1.9 – 0.1 – 0.2 13.7 4.1 36.4 6.5 17.4 60.3
Distributions 0.0 0.0 – 6.5 0.0 – 6.5
Capital increase / decrease 0.0 0.0 0.0 0.0 0.0 0.0
Buyback of hybrid capital 0.0 0.0 0.0 0.0
Other changes 0.2 0.2 – 0.1 0.1
31 May 2015 204.2 0.0 1,614.9 1,351.7 – 3.4 2.1 – 10.6 – 5.8 8.2 3,161.3 683.9 669.5 4,514.7
1 March 2016 204.2 0.0 1,614.9 1,424.2 – 5.1 1.6 – 14.2 – 67.4 0.2 3,158.4 653.1 661.4 4,472.9
net earnings 54.1 54.1 3.4 19.2 76.7
Other comprehensive income / loss before taxes 0.0 – 0.4 – 0.1 – 0.4 – 2.0 – 5.1 – 8.0 1.9 – 6.1
Taxes on other comprehensive income 0.0 0.3 0.0 0.1 0.4 – 0.7 – 0.3
Comprehensive income 54.1 – 0.1 – 0.1 – 0.3 – 2.0 – 5.1 46.5 3.4 20.4 70.3
Distributions 0.0 0.0 – 3.4 0.0 – 3.4
Capital increase / decrease 0.0 0.0 0.0 0.0 0.0 0.0
Buyback of hybrid capital 0.0 0.0 0.0 0.0
Other changes 0.0 0.0 – 0.1 – 0.1
31 May 2016 204.2 0.0 1,614.9 1,478.3 – 5.2 1.5 – 14.5 – 69.4 – 4.9 3,204.9 653.1 681.7 4,539.7
TABLE 17
25INTERIM CONSOLIDATED FINANCIAL STATEMENTS
ChAnGeS in ShARehOLDeRS’ equiT y
1st quarter
€ million 2016/17 2015/16 + / – in %
Südzucker Group
Gross revenues 1,699.4 1,715.7 – 1.0
Consolidation – 91.2 – 86.9 4.9
Revenues 1,608.2 1,628.8 – 1.3
EBITDA 159.2 106.8 49.1
eBiTDA margin 9.9 % 6.6 %
Depreciation – 49.3 – 49.9 – 1.2
Operating result 109.9 56.9 93.1
Operating margin 6.8 % 3.5 %
Result from restructuring / special items – 6.7 – 5.7 17.5
Result from companies consolidated at equity 11.0 9.3 18.3
Result from operations 114.2 60.5 88.8
investments in fixed assets 1 59.1 72.6 – 18.6
investments in financial assets / acquisitions 0.8 0.0 –
Total investments 59.9 72.6 – 17.5
Shares in companies consolidated at equity 336.7 317.2 6.1
Capital employed 6,028.3 6,172.6 – 2.3
Number of employees 17,922 18,298 – 2.1
Sugar segment
Gross revenues 749.0 767.8 – 2.4
Consolidation – 53.9 – 55.4 – 2.7
Revenues 695.1 712.4 – 2.4
EBITDA 35.1 0.4 > 100
eBiTDA margin 5.0 % 0.1 %
Depreciation – 13.8 – 13.4 3.0
Operating result 21.3 – 13.0 –
Operating margin 3.1 % – 1.8 %
Result from restructuring / special items – 0.0 0.0 –
Result from companies consolidated at equity 5.4 3.5 54.3
Result from operations 26.7 – 9.5 –
investments in fixed assets 1 24.2 32.0 – 24.4
investments in financial assets / acquisitions 0.8 0.0 –
Total investments 25.0 32.0 – 21.9
Shares in companies consolidated at equity 273.5 255.9 6.9
Capital employed 3,238.8 3,414.7 – 5.2
Number of employees 7,013 7,215 – 2.81 including intangible assets.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
Segment report
26NOTES TO THE INTERIM FINANCIAL STATEMENTS
1st quarter
€ million 2016/17 2015/16 + / – in %
Special products segment
Gross revenues 475.1 459.2 3.5
Consolidation – 18.6 – 14.4 29.2
Revenues 456.5 444.8 2.6
EBITDA 64.3 56.4 14.0
eBiTDA margin 14.1 % 12.7 %
Depreciation – 18.3 – 19.2 – 4.7
Operating result 46.0 37.2 23.7
Operating margin 10.1 % 8.4 %
Result from restructuring / special items – 3.0 – 0.5 > 100
Result from companies consolidated at equity 5.6 5.8 – 3.4
Result from operations 48.6 42.5 14.4
investments in fixed assets 1 29.0 28.5 1.8
investments in financial assets / acquisitions 0.0 0.0 –
Total investments 29.0 28.5 1.8
Shares in companies consolidated at equity 61.4 59.6 3.0
Capital employed 1,461.4 1,423.1 2.7
Number of employees 4,602 4,401 4.6
CropEnergies segment
Gross revenues 167.5 197.8 – 15.3
Consolidation – 18.5 – 17.0 8.8
Revenues 149.0 180.8 – 17.6
EBITDA 28.1 22.3 26.0
eBiTDA margin 18.9 % 12.3 %
Depreciation – 8.7 – 8.6 1.2
Operating result 19.4 13.7 41.6
Operating margin 13.0 % 7.6 %
Result from restructuring / special items – 3.7 – 5.0 – 26.0
Result from companies consolidated at equity 0.0 0.0 –
Result from operations 15.7 8.7 80.5
investments in fixed assets 1 2.5 7.8 – 67.9
investments in financial assets / acquisitions 0.0 0.0 –
Total investments 2.5 7.8 – 67.9
Shares in companies consolidated at equity 1.8 1.7 5.9
Capital employed 499.9 518.8 – 3.6
Number of employees 405 429 – 5.71 including intangible assets.
27NOTES TO THE INTERIM FINANCIAL STATEMENTS
1st quarter
€ million 2016/17 2015/16 + / – in %
Fruit segment
Gross revenues 307.8 290.9 5.8
Consolidation – 0.2 – 0.1 100.0
Revenues 307.6 290.8 5.8
EBITDA 31.7 27.7 14.4
eBiTDA margin 10.3 % 9.5 %
Depreciation – 8.5 – 8.7 – 2.3
Operating result 23.2 19.0 22.1
Operating margin 7.5 % 6.5 %
Result from restructuring / special items 0.0 – 0.2 – 100.0
Result from companies consolidated at equity 0.0 0.0 –
Result from operations 23.2 18.8 23.4
investments in fixed assets 1 3.4 4.3 – 20.9
investments in financial assets / acquisitions 0.0 0.0 –
Total investments 3.4 4.3 – 20.9
Shares in companies consolidated at equity 0.0 0.0 –
Capital employed 828.2 816.0 1.5
Number of employees 5,903 6,253 – 5.61 including intangible assets.
TABLE 18
(1) Principles of preparation of the interim consolidated financial statements
Südzucker Group’s interim financial statements as of 31 May 2016 were prepared in accordance with the rules on interim
financial reporting pursuant to IAS 34 (Interim Financial Reporting), in conformance with the International Financial Reporting
Standards (IFRS) published by the International Accounting Standards Board (IASB). Südzucker AG’s interim consolidated
financial statements dated 31 May 2016 have been condensed as per IAS 34. The consolidated interim statements dated
31 May 2016 were not subject to any inspection or audit review. Südzucker AG’s board of directors prepared these interim
financial statements on 27 June 2016.
As presented in the notes to the financial statements of the 2015/16 annual report under item (1) “Principles of preparation of
the consolidated financial statements” on pages 115 to 118, there were new and / or amended standards and interpretations
that came into effect and were applied for the first time in preparing these interim financial statements.
A discount rate of 1.95 % was applied to material plans on 31 May 2016 unchanged as of 29 February 2016 to calculate
provisions for pensions and similar obligations. The discount rate applied on 31 May 2015 was 1.75 %.
Income taxes were calculated on the basis of local corporate income tax rates in consideration of the income tax forecast for the
entire fiscal year. Material special items are fully recognized neglecting the determination of the annual tax rate in the respective
quarter in which they occur.
28NOTES TO THE INTERIM FINANCIAL STATEMENTS
Sugar is primarily produced from September to January. This is why depreciation on systems used for the campaign is predom-
inantly applied during this period. Any material, personnel and other operating expenses incurred in preparation for production
prior to the next sugar campaign are capitalized during the fiscal year via changes in inventories and recognized on the balance
sheet under inventories as work in progress. These are then taken into account during subsequent sugar production when
determining the production costs of the sugar produced and thus recognized under inventories as part of finished goods.
The same accounting and valuation methods as those used to prepare the group annual financial statements dated 29 Febru-
ary 2016 were applied for the remainder of this interim report. The relevant explanatory notes under item 5, “Accounting
policies”, pages 124 to 129 of the 2015/16 annual report, thus also apply here.
Südzucker Group’s 2015/16 annual report can be viewed or downloaded at www.suedzucker.de/de/Investor-Relations/ and / or
www.suedzucker.de/en/Investor-Relations/.
(2) Companies included in consolidation
As of the end of the first quarter of 2016/17, the scope of consolidation included 152 companies in addition to Südzucker AG
(end of fiscal 2015/16: 153 companies). The Belgian Herentals site owned by PortionPack has now been sold. It was put up for
sale at the end of the 2015/16 fiscal year. The associated cash inflow is reported in the cash flow statement under proceeds from
divestments. In total, 16 companies (end of fiscal 2015/16: 16 companies) were consolidated at equity.
In June 2016, Südzucker Verwaltungs GmbH, a 100 % subsidiary of Südzucker AG, signed an agreement to acquire 100 % of the
shares of the agricultural cooperative Terra eG. Terra eG will be fully consolidated into the consolidated financial statements as
of the second quarter of 2016/17.
Terra eG is headquartered in Sömmerda, Thuringia, and operates about 2,700 ha of agricultural land in the districts of Brotterode,
Sömmerda, Straussfurt and Weissensee (Erfurt Basin).
The acquisition of the agricultural cooperative is expected to generate synergies and offset continuous area losses, especially
in western Germany. It is also expected to generate economies of scale, and thereby sustainably safeguard and improve the
structure of and result from the agricultural division.
The purchase price of about € 30 million is attributable almost entirely to the purchased agricultural lands, farmstead including
large storage facilities as well as train of machines. The market values for the individual asset and liability items for Terra eG at
the time of acquisition are currently being calculated.
(3) Earnings per share
The calculation of earnings per share according to IAS 33 from 1 March to 31 May 2016 was based on a time-weighted
average of 204.2 million shares outstanding. Earnings per share came in at € 0.26 (0.10) for the first quarter and were not
diluted.
29NOTES TO THE INTERIM FINANCIAL STATEMENTS
€ million 31 May 2016 2015
Raw materials and supplies 394.6 391.7
work in progress and finished goods
Sugar segment 804.3 964.9
Special products segment 165.4 178.7
Cropenergies segment 32.1 29.2
Fruit segment 131.5 106.0
Total of work in progress and finished goods 1,133.3 1,278.8
merchandise 86.4 106.1
1,614.3 1,776.6
TABLE 19
€ million
2016
Remaining term
2015
Remaining term
31 May to 1 year over 1 year to 1 year over 1 year
Trade receivables 941.1 941.1 0.0 998.3 998.3 0.0
Receivables due from the eu 0.2 0.2 0.0 9.6 9.6 0.0
Positive market value derivatives 3.7 3.7 0.0 2.7 2.7 0.0
Remaining financial assets 86.1 73.4 12.7 78.6 62.8 15.8
Other taxes recoverable 95.1 95.1 0.0 95.3 95.3 0.0
Remaining non-financial assets 73.2 73.2 0.0 85.0 85.0 0.0
Other assets 258.3 245.6 12.7 271.2 255.4 15.8
TABLE 20
(4) Inventories
The carrying amount of inventories was lower than the year prior at € 1,614.3 (1,776.1) million, mainly due to lower stock
quantities in the sugar segment.
(5) Trade receivables and other assets
Faces with declining revenues, trade receivables were lower than the year prior, especially in the sugar segment, and came in at
€ 941.1 (998.3) million. Other financial assets of € 86.1 (78.6) million include mainly receivables from non-consolidated
companies, shareholdings and employees and other third parties. Non-financial assets of € 73.2 (85.0) million are largely related
to advances made and accruals/deferrals.
30NOTES TO THE INTERIM FINANCIAL STATEMENTS
€ million 31 May 2016 Short-term Long-term 2015 Short-term Long-term
Personnel-related provisions 84.4 20.7 63.7 105.1 36.4 68.7
Provisions for litigation risks and risk precautions 154.5 145.1 9.4 123.3 114.9
8.4
Other provisions 64.6 38.8 25.8 103.5 70.7 32.8
Total 303.5 204.6 98.9 331.9 222.0 109.9
TABLE 21
€ million
2016
Remaining term
2015
Remaining term
31 May to 1 year over 1 year to 1 year over 1 year
Liabilities to beet growers 11.6 11.6 0.0 34.2 34.2 0.0
Liabilities to other trade payables 391.1 391.1 0.0 432.4 432.4 0.0
Trade payables 402.7 402.7 0.0 466.6 466.6 0.0
Liabilities for production levy 0.0 0.0 0.0 0.0 0.0 0.0
negative market value derivatives 18.4 18.4 0.0 19.2 19.2 0.0
Remaining financial liabilities 148.0 133.1 14.9 157.3 137.7 19.6
Liabilities for personnel expenses 100.3 99.3 1.0 100.5 99.7 0.8
Liabilities for other taxes and social security contributions 66.9 66.9 0.0 59.9 59.9 0.0
Remaining non financial liabilities 20.3 20.3 0.0 18.8 18.8 0.0
Other liabilities 353.9 338.0 15.9 355.7 335.3 20.4
TABLE 22
(6) Other provisions and accruals
Personnel-related provisions in the amount of € 84.4 (105.1) million primarily represent non-current provisions for long-service
awards, provisions for part-time early retirement and largely short-term provisions for termination benefit plans.
The provisions for litigation risks and risk precautions of € 154.5 (123.3) million include provisions for market regulation
procedures, operational contract procedures and antitrust risks (fines and damage claims from customers).
The other provisions in the amount of € 64.6 (103.5) million mainly represent non-current provisions for restoration obligations,
together with current and non-current provisions for recultivation and environmental obligations largely related to sugar
production. Provisions for the temporary closure of the bioethanol factory at the Wilton, Great Britain site are also included.
(7) Trade payables and other liabilities
31NOTES TO THE INTERIM FINANCIAL STATEMENTS
€ million Remaining term Remaining term
31 May 2016 to 1 year over 1 year 2015 to 1 year over 1 year
Bonds 656.4 257.6 398.8 771.9 361.9 410.0
of which convertible 0.0 0.0 0.0 0.0 0.0 0.0
Liabilities to banks 683.8 369.4 314.4 680.2 319.2 361.0
Liabilities from finance leasing 2.8 0.3 2.5 0.2 0.1 0.1
Financial liabilities 1,343.0 627.3 715.7 1,452.3 681.2 771.1
Securities (non-current assets) – 18.7 – 20.1
Securities (current assets) – 125.7 – 125.7
Cash and cash equivalents – 457.0 – 477.8
Investments in securities and cash and cash equivalents – 601.4 – 623.6
Net financial debt 741.6 828.7
TABLE 23
Trade payables fell to € 402.7 (466.6) million. The remaining financial liabilities fell to € 148.0 (157.3) million and include
interest payment obligations. Liabilities for personnel expenses totaling € 100.3 (100.5) million mainly represent commitments
for bonuses, premiums, vacation and overtime pay. Other non-financial liabilities totaling € 20.3 (18.8) million mainly include
accrued and deferred items and advances received on orders.
(8) Financial liabilities, securities and cash and cash equivalents (net financial debt)
Financial liabilities fell € 109.3 million to € 1,343.0 (1,452.3) million despite a smaller portfolio of securities, cash and cash
equivalents totaling € 601.4 (623.6) million. As a result, net financial debt was down € 87.1 million to € 741.6 (828.7) million. An
impairment charge of € 4.7 million was created for a short-term financial asset at AGRANA Fruit in Ukraine.
HYBRID BOND
Information on the hybrid bond is provided in the notes to the financial statements on page 158 of the 2015/16 annual report
under item (30) “Financial liabilities, securities and cash and cash equivalents (net financial debt)”. The subordinated bond has
a variable coupon of the 3 month Euribor interest rate plus 3.10 % p. a. effective June 30, 2015. The interest rate was set at
2.858 % p. a. for the period from 31 March 2016 to 30 June 2016 exclusively (91 days). For the period from 30 June 2016 to 30
September 2016 exclusively (92 days), an interest rate of 2.819 % p. a. was applied.
Südzucker’s current ratings are Baa2/P-2 (Moody’s) with a stable outlook and BBB-/A-3 (Standard & Poor’s) with a positive
outlook. The hybrid bond ratings are Ba3 (Moody’s) and B+ (Standard & Poor’s).
32NOTES TO THE INTERIM FINANCIAL STATEMENTS
31 May
IAS 39 measurement category
2016 2015
€ million Carrying amount Fair value Carrying amount Fair value
BondsFinancial liabilities measured at armotised cost 656.4 684.5 771.9 808.9
Liabilities to banksFinancial liabilities measured at armotised cost 683.8 695.1 680.2 688.9
Liabilities from finance leasing n/a 2.8 2.8 0.2 0.2
Gross financial liabilities 1,343.0 1,382.4 1,452.3 1,498.0
TABLE 24
(9) Additional disclosures on financial instruments
CARRYING AMOUNTS AND FAIR VALUES
The following table shows the changed carrying amounts and applicable fair values of Südzucker’s gross financial liabilities.
According to the definition of IFRS 13 (Fair Value Measurement), fair value is the price that would be received for the sale of an
asset; that is, the price that would be paid for the transfer of a liability in an orderly transaction between market participants at
the measurement date.
The carrying amount of cash and cash equivalents, trade receivables and other financial receivables, trade payables and other
financial liabilities is considered a reasonable estimate of the fair value.
Fair values cannot be determined for securities measured at amortized cost since market values or exchange prices were not
available in the absence of an active market.
33NOTES TO THE INTERIM FINANCIAL STATEMENTS
€ million Fair value hierarchy
31 May 2016Evaluation
level 1Evaluation
level 2 2015Evaluation
level 1Evaluation
level 2
Securities - Available for Sale 19.4 19.4 0.0 60.8 20.8 40.0
Positive market values – derivatives without hedge accounting 3.4 2.9 0.5 2.4 0.5 1.9
Positive market values – hedge accounting derivatives 0.3 0.1 0.2 0.3 0.0 0.3
Financial assets 23.1 22.4 0.7 63.5 21.3 42.2
negative market values – derivatives without hedge accounting 11.0 2.2 8.8 12.9 0.0 12.9
negative market value – hedge accounting derivatives 7.4 6.8 0.6 6.3 5.3 1.0
Financial liabilities 18.4 9.0 9.4 19.2 5.3 13.9
TABLE 25
MEASUREMENT LEVELS
The following table shows the carrying amount and fair value of financial assets and liabilities by measurement level.
- Level 1: Measurement based on unadjusted prices determined on active markets.
- Level 2: Measurement using prices derived from prices determined on active markets.
- Level 3: Measurement method that considers influencing factors not exclusively based on observable market data; currently
not applied by Südzucker Group.
For more details on how the fair value of each financial instrument is determined and their allocation to measurement levels,
please refer to the notes to the consolidated financial statements in the 2015/16 annual report under item (32) “Additional
disclosures on financial instruments” on pages 169 to 172.
34NOTES TO THE INTERIM FINANCIAL STATEMENTS
(10) Related parties
There have been no material changes to the related parties described in the notes to the 2015/16 annual report under item (36)
on pages 174 to 175.
Mannheim, 27 June 2016
Südzucker AG
The executive board
Dr. Wolfgang Heer Dr. Thomas Kirchberg Thomas Kölbl Johann Marihart
(Chairman)
35NOTES TO THE INTERIM FINANCIAL STATEMENTS
Forward looking statements / forecasts
This report contains forward looking statements. The statements are based on current assumptions and estimates made by the executive board
and information currently available to its members. The forward looking statements are not to be viewed as guarantees of the future developments
and results presented therein. Future developments and results are in fact dependent on a variety of factors and are subject to various risks and
imponderables. They are based on assumptions that could in fact prove to be invalid. The risk management report in the 2015/16 annual report
on pages 86 to 97 presents an overview of the risks. We accept no obligation to update the forward-looking statements contained in this report.
36
SÜDZUCKER AG
Contacts
Investor Relations
Nikolai Baltruschat
investor.relations@suedzucker.de
Phone: +49 621 421 - 240
Fax: +49 621 421 - 449
Financial press
Dr. Dominik Risser
public.relations@suedzucker.de
Phone: +49 621 421 - 428
Fax: +49 621 421 - 425
Südzucker on the Internet
For more information about Südzucker Group
please go to our website:
www.suedzucker.de
Published by
Südzucker AG
Maximilianstraße 10
68165 Mannheim, Germany
Phone: +49 621 421 - 0
© 2016