2016-11-21-Investor Update Fixed Income-en - Südzucker · Investor Update Fixed Income, November...
Transcript of 2016-11-21-Investor Update Fixed Income-en - Südzucker · Investor Update Fixed Income, November...
Südzucker Group, page 1
Südzucker GroupThomas Kölbl (CFO)
Investor Update Fixed Income, November 2016
Südzucker Group, page 2
FINANCIAL TRANSPARENCY
This presentation 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 94 to 109 presents an overview of the risks. We assume no obligation to update the forward-looking statements made in this presentation.
This presentation includes percentage and number rounding. Typing and printing errors reserved. IFRS 11 application as of financial year 2013/14.
Written and visual value statements are standardized as follows:
Disclaimer
± 1%stable
/± 4-10%moderate
/>/< 10%significant
/± 1-4%slight
Südzucker Group, page 3
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives page 4
2. Brief segmental overview page 9
3. Financial Highlights H1 2016/17 page 20
4. Financing and Liquidity page 23
Südzucker Group, page 4
FINANCIAL TRANSPARENCY
Südzucker Group at a glance
Special Products
(28%)
Sugar(45%)
Fruit(17%)
CropEnergies (10%)
Group Revenues 6.4 bn € Global operating German food group with long-standing corporate history: 1837:Foundation of first sugar
company 1926:Foundation of
Süddeutsche Zucker-AG Revenues: 6,387 mn € Operating result: 241mn € Production facilities: ~100 Employees: ~16.500 Beneficiary of mega trends within
food, animal feed and energy area Stock exchange listing in Germany MDAX-member Trading volume: ~ 1.0 mn
shares/day* rounded
*
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FINANCIAL TRANSPARENCY
Leading Market Positions and clear Strategic Objectives
Segment/Division Market Position Strategy / Main Drivers
Sugar
BENEOFreibergerStarchPortionPack
FruitPreparations
Fruit JuiceConcentrates
CropEnergies
Take full benefit of global increase in demand for healthy food and upmarket products through new facilities (e.g. USA)
Usage of integrated platform to raise synergiesin combined global sourcing and distribution
Platform with Austria Juice supports growth and profitability
#1 in Europe Further enhancement of leading market
position in Europe; especially in deficit markets Expedite internationalization; partnership with ED&F Man
#1 worldwide
#1 in Europe
#1 worldwide in Isomaltand Oligofructose
#1 in Europe in frozenPizza (private label)
#1 in Europe in portionpacks
One of the leading bioethanol players in Europe
Leverage strength of core products intoproduct innovations
Further internal and external growth
Focus on specialty starches Market share expansion through new facilities
Development of product portfolio and regions
Full exploitation of implemented capacity build-up Consolidation of the leading position
Source: Südzucker
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FINANCIAL TRANSPARENCY
,0
4,000
8,000
12,000USD
per capita income
Source: ERS International Macroeconomic Data Set
emerging markets
worldwide
Portfolio benefits from long-term global megatrends
18,000
58,000
98,000
138,000
178,000
218,000
2,000
4,000
6,000
8,000
tmn
Sources: United Nations, F.O. Licht
population growth worldwide
sugar consumption worldwide
0
20
40
60
80
100
120
0
20
40
60
80
100
USD / barrelmn barrel / day
Source: BP, EIA
oil consumption
crude oil price ,200
,400
,600
,800
1,000mn t
Source: USDA
global animal feed production
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FINANCIAL TRANSPARENCY
0
200
400
600
800
1.000
Sugar
Advantage of a diversified portfolio in changing marketsOperating Result in mn €
Special Products CropEnergies Fruit
Südzucker Group, page 8
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives page 4
2. Brief segmental overview page 9
3. Financial Highlights H1 2016/17 page 20
4. Financing and Liquidity page 23
Südzucker Group, page 9
FINANCIAL TRANSPARENCY
Segment Sugar
(mn €) 2015/16 2014/15 ΔRevenues 2.855 3.228 -373 -11,6%EBITDA 48 133 -85 63,0%EBITDA-Margin 1,7% 4,1%Operating Result -79 7 -86Operating Margin -2,7% 0,2%Restructuring and special items 4 -7 11Result from companies consolidated at equity 32 -5 37Result from operations -43 -5 -38
Investments 181 186 -5 -2,9%Fixed Assets 181 186 -5 -2,9%Financial Assets / Acquisitions 0 0 0
Capital Employed 3.041 3.199 -158 -4,9%RoCE -2,6% 0,2%
Südzucker Group, page 10
FINANCIAL TRANSPARENCY
Segment Sugar: Europe
European market leader
Pan-European sales and logisticstrategy
Sustainable production in highest beet-yield areas in Europe
Cost savings throughout entirevalue chain
Keeping and strengtheningcompetitiveness
Exploiting growth opportunitiesoutside Europe Exports from EU Acquisitions
France
GermanyBelgium
Poland
Austria
Romania
Moldova
7
Hungary
CzechRepublic
Slovakia
Bosnia-Hercegovina
Italy
Bulgaria
GreeceSpain
Portugal
Great Britain
Distribution activitiesBeet sugar factoriesSugar refineries
Südzucker Group, page 11
FINANCIAL TRANSPARENCY
EU Sugar Market
Sugar and isoglucose quota Quota sugar: Minimum beet price Contractual obligation between industry and
farmer Specification of “EU-Toolbox”:
Market withdrawals, conversion of non-quota into quota sugar, import tender
Exports limited to about 1.4 mn t p.a.
Elimination of sugar and isoglucose quota No minimum beet price Contractual obligation between industry and
farmer Further measures/security net (e.g. private
storage) require resolution
No export restrictions
Border Protection: unchanged Import duty 419 €/t (white sugar) resp. 339 €/t (raw sugar) from non-preferential countries
Preferential agreements with LDC-/ACP- and other countries: unchanged
New market framework1 October 2017
EU sugar policyuntil 30 September 2017
Südzucker Group, page 12
FINANCIAL TRANSPARENCY
Participation in ED&F Man offers a global footprint
Sugar onlyLiquid Products only
Coffee only
Multiple businesses
Long standing successful history (founded 1783) Truely global footprint (~6,500 employees
in 60 countries) Beneficiary of long-term growth in global
sugar demand Approx. 10 mn t global sugar trading volume; one of
the largest sugar trader with significant presence in Central and South America, Far East, South East Asiaand Africa
Participations in sugar production and refining capacities amongst others in the Ukraine, Mexico, Chile and India
Well positioned in further complementary key product categories Trading of coffee (incl. roasting) and molasses (Man liquid products) Further business activities in divisions shipping and financial services
Südzucker Group, page 13
FINANCIAL TRANSPARENCY
Segment Special Products
(mn €) 2015/16 2014/15 ΔRevenues 1.791 1.724 67 3,9%EBITDA 246 192 54 27,5%EBITDA-Margin 13,7% 11,2%Operating Result 171 120 51 41,9%Operating Margin 9,5% 7,0%Restructuring and special items -2 -3 1Result from companies consolidated at equity 23 27 -4 -14,0%Result from operations 192 144 48 33,3%
Investments 131 126 5 4,5%Fixed Assets 131 125 6 5,1%Financial Assets / Acquisitions 0 1 -1
Capital Employed 1.436 1.377 59 4,3%RoCE 11,9% 8,7%
Südzucker Group, page 14
FINANCIAL TRANSPARENCY
Segment Special Products: Overview
Revenues (mn €)**
** IFRS 11 adjusted since 2013/14*** incorporates AGRANA bioethanol and starch activities
Revenue split 2015/16
Freiberger31%
BENEO (Functional Food)
23%
PortionPack7%
Starch***39%
1,791mn €
Segment special products shows very solid fundamental development and recordresult*
Growth based on intact mega trends: Unchanged trend to alternative and
functional food ingredients Further growing demand for convenience
products Unchanged global demand growth for
aminal feed (e.g. gluten) New capacities to take benefit of market
growth (e.g. pizza and starch) Production cost reduction via alternative
energy concepts (biomass boiler Chile) Efficiency gains via distribution synergies
* with respect to IFRS 11 regrouping Hungrana in 2013/14 from operating profit toincome from companies consolidated at equity
1,575
1,8061,862
1,740 1,7241,791
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
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FINANCIAL TRANSPARENCY
Segment CropEnergies
(mn €) 2015/16 2014/15 ΔRevenues 658 764 -106 -13,8%EBITDA 122 25 97 >100%EBITDA-Margin 18,5% 3,3%Operating Result 87 -11 98Operating Margin 13,2% -1,5%Restructuring and special items -18 -28 10Result from companies consolidated at equity 0 0 0Result from operations 69 -39 108
Investments 17 32 -15 -47,3%Fixed Assets 17 32 -15 -47,3%Financial Assets / Acquisitions 0 0 0
Capital Employed 490 518 -28 -5,4%RoCE 17,7% -2,2%
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FINANCIAL TRANSPARENCY
Houston
São Paulo
DuisburgRotterdam
ZeitzWanzeLoon-Plage
Production facility Tank storage Trading
Wilton
Santiago de Chile
Segment CropEnergies Start build-up of business area 2004 One of the leading bioethanol producers in Europe Capacities:
1.3 mn m³ p.a. fuel bioethanol 150,000 m³ p.a. bioethanol for technical and
traditional applications 1.2 mn t p.a. food- and animal feed
Megatrend: Renewable Energy EU target 2020 transport sector:
10 % from renewable energy sources Reduction of CO2 emissions Stronger independency against oil imports
Sustainable raw material from European agriculture entirely used
Flexiblility of usage of raw material grain and sugar syrup Wanze
Südzucker Group, page 17
FINANCIAL TRANSPARENCY
Segment Fruit
(mn €) 2015/16 2014/15 ΔRevenues 1.083 1.062 21 2,0%EBITDA 102 103 -1 -1,8%EBITDA-Margin 9,4% 9,8%Operating Result 62 65 -3 -5,2%Operating Margin 5,7% 6,1%Restructuring and special items -3 -6 3Result from companies consolidated at equity 0 0 0Result from operations 59 59 0 0,3%
Investments 42 43 -1 -3,0%Fixed Assets 42 43 -1 -3,0%Financial Assets / Acquisitions 0 0 0
Capital Employed 823 782 41 5,3%RoCE 7,5% 8,4%
Südzucker Group, page 18
FINANCIAL TRANSPARENCY
Overview Division Fruit preparations: World market leader
Customers: dairy, baking and ice cream industry Division Fruit juice concentrates: Largest
manufacturer of fruit juice concentrates in Europe (market leader in apple juice concentrates)
Core competences Upgrading of agricultural raw material into
premium preliminary products for food industry Global sourcing and distribution of fruit
ingredients Positioning & Strategy
Shared customer base with segments/divisions sugar, BENEO and starch
Growth drivers: Especially yogurt drinks rank among the
fastest growing food products globally Increase in awareness for healthy food and
growing per-capita income (emerging markets)
Further growth via fruit juice concentrates merger Reorganisation measures in division fruit
preparations in Central Europe
Segment Fruit – with leading positions in both divisions
AUSTRIA JUICE GmbHAGRANA Fruit S.A.S.
Fruit preparations
~75% of segment revenues⅓ of world market24 facilities worldwide
Fruit juice concentrates
~25% of segment revenuesLargest manufacturer of fruit juice concentrates in Europe14 facilities worldwide
AGRANA Internationale Verwaltungs-und Asset-Management GmbH
Production facility
Südzucker Group, page 19
FINANCIAL TRANSPARENCY
Agenda
1. Overview and strategic objectives page 4
2. Brief segmental overview page 9
3. Financial Highlights H1 2016/17 page 20
4. Financing and Liquidity page 23
Südzucker Group, page 20
FINANCIAL TRANSPARENCY
Group revenues decline by 4 % to 3,205 (3,331) million €
EBITDA increased 31% to 310 (236) million €
Operating result increased 56 % to 209 (134) million €
Cash flow increased 24 % to 268 (216) million €
Earnings per share increased to 0.53 (0.22) €
Net financial debt decreased by 47 million € to 492 (539) million €
Net financial debt as % of equity 11 (12) %
Equity ratio still on high level at 57 (58) %
Financial Highlights – H1 2016/17
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FINANCIAL TRANSPARENCY
Summary segments H12016/17
Südzucker Group, page 22
FINANCIAL TRANSPARENCY
1. Overview and strategic objectives page 4
2. Brief segmental overview page 9
3. Financial Highlights H1 2016/17 page 20
4. Financing and Liquidity page 23
Agenda
Südzucker Group, page 23
FINANCIAL TRANSPARENCY
Several capital market „anchors“
Market Cap and Shareholder Structure*Market Cap and Shareholder Structure*
Südzucker (69%)
Agrana~ 1.5 bn €
CropEnergies
~ 414 mn €
Südzucker~ 4.3 bn €
Südzucker direct(~7%)
Z&S*** (86%) SZVG** (7%)
Free float(24%)
Free float(7%)
Free float(34%)
SZVG** (56%)
Zucker Invest GmbH
(10%)
Südzucker indirect via Z&S (43%)
* November 2016** Süddeutsche Zuckerrübenverwertungs-Genossenschaft eG*** Z&S Zucker und Stärke Holding AG (~50% Südzucker, ~50% ZBG (Zucker-Beteiligungsgesellschaft m.b.H.))
Südzucker Group, page 24
FINANCIAL TRANSPARENCY
Rating
Rating agency Long-term rating Short-term rating
BBB- *Positive Outlook **
Baa 2 ***Stable Outlook ****
A – 3 *
P – 2
* since 15 June 2015** since 21 June 2016*** since 17 June 2014**** since 20 May 2016
Südzucker Group, page 25
FINANCIAL TRANSPARENCY
Strong debt reduction despite high capex volume
* IFRS 11 adjusted since 2013/14
1,632
1,065
854 791
464536 593 555504 553 606
823
996
697
389480
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17e
mn
€
Net Financial Debt
Cash Flow
550 -650>
prev. year
3.2x 1.0x 0.5x 0.8x 1.5xNFD/CF 1.9x 1.4x 1.2x 1.0-1.2x
2,4511,740 2,175 2,648 2,444 2,417Liquidity(mn €)
2,452 2,184 ~2,400
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FINANCIAL TRANSPARENCY
12 94 14
400
2016 2017 2018 2019 2020 2021
EUR-Bond
PromissoryNote
Commercial Paper Programm 600 mn € (perpetual)
Favorable financing maturity profile* (mn €) as of 31 August 2016
* Displayed to 2021; Agrana promissory note: 7 mn € tranche due in 2022
Syndicated loan 1,050 mn €
Hybrid Bond 700 mn € (perpetual)5.25 % p.a. fixed before June 2015 payout annually /
since June 2015 variable 3M-Euribor + 310 bp payout quarterly
Südzucker Group, page 27
FINANCIAL TRANSPARENCY
Unchanged comfortable liquidity position*
* IFRS 11 adjusted since 28 February 2014
(mn €) 28.02.2013 28.02.2014 28.02.2015 29.02.2016without IFRS 11 with IFRS 11 with IFRS 11 with IFRS 11
Net financial debt -444 -536 -593 -555
Cash & Cash equivalents / securities 613 648 681 604
Gross financial debt -1.057 -1.183 -1.274 -1.158
Long-term financial debt -801 -681 -774 -731
Short-term financial debt -256 -502 -500 -427
Bank credit l ines: 887 759 807 798undrawn 395 313 364 433
Syndicated loan facility 600 600 600 600undrawn 600 600 600 600
Syndicated loan facility Agrana 450 450 450 450undrawn 440 373 371 339
Commercial paper program 600 600 600 600undrawn 600 510 400 475
= Total l iquidity reserves 2.648 2.444 2.417 2.451
Südzucker Group, page 28
FINANCIAL TRANSPARENCY
Issuer: Südzucker International Finance B.V., NL Guarantor: Südzucker AG Guarantor Rating: BBB- (positive) / Baa2 (stable) S&P/Moody’s
Format: Senior, Unsecured Status: Bearer Notes
Size: EUR 250 million, sub benchmark Maturity: 7 years, November 2023 Coupon: Fixed, payable annually
Use of Procceds: For purposes of general business including the refinancing of existing debt and for financing affiliated companies of the Südzucker Group
Docs/Law: Stand-alone / German Law Denominations: EUR 1,000 and multiples thereof Listing: Regulated market of the Luxembourg Stock Exchange
New Issue: Fixed Rate Euro Denominated Notes
Südzucker Group, page 29
FINANCIAL TRANSPARENCY
Executive Summary
Diversified business model supports group in ongoing volatile environment World market price driven turnaround in segment sugar, but difficult
transition period into post-2017-era expected Solid development in segments special products, CropEnergies and fruit
Largely completed capacity build-up as well as capacity reserves arebasis for further volume increase
Increasing excess cash improve room to manouevre Continuation of solid financing policy
Maturity Balance sheet ratios Liquidity Financial ratios
Investment Grade Rating
Südzucker Group, page 30
FINANCIAL TRANSPARENCY
Contact
Nikolai BaltruschatHead of Investor RelationsTel.: +49 (621) 421 – [email protected]
Bernhard JuretzekManager Investor RelationsTel.: +49 (621) 421 – [email protected]
Sandra KochnerAssistantTel.: +49 (621) 421 – [email protected]
Südzucker AGMaximilianstrasse 1068165 Mannheim, [email protected]
Financial calender
12 January 2017Q3 – 1st to 3rd quarter report 2016/17
18 May 2017Press and analysts‘ conference fiscal 2016/17
13 July 2017Q1 – 1st quarter report 2017/18
20 July 2017Annual general meeting for fiscal 2016/17
12 October 2017Q2 – 1st half year report 2017/18
11 January 2018Q3 – 1st to 3rd quarter report 2017/18
Investor Relations