Nordzucker AG Interim ReportFinancial Year 2011/2012 First Half-Year March 1 – August 31, 2011
Group figures and ratios
Nordzucker Half-Year Report 2011/2012
Group figures and ratios first half-year 2011/2012
Operating business H1 H1 2011/2012 2010/2011
Change absolute
Revenues
EUR m
900
914
-14
Total revenues
EUR m
584
467
117
Gross income
EUR m
306
299
7
EBITDA
EUR m
155
132
23
EBIT
EUR m
112
83
29
Net income
EUR m
73
34
39
Cash flow from operating activities
EUR m
291
398
-107
Investments in property, plant and equipment and intangible assets
EUR m
32
36
-4
Balance sheet as of August 31 H1 H1 2011/2012 2010/2011
Change absolute
Balance sheet total
EUR m
1,689
1,907
-218
Equity
EUR m
855
739
116
%
51
39
12
Debt capital
EUR m
834
1,168
-334
Financial liabilities
EUR m
222
431
-209
Cash and cash equivalents
EUR m
74
180
-106
Net debt (Cash and cash equivalents less financial liabilities)
EUR m
148
251
-103
Equity ratio
Structure figures Northern Europe Sugar factories Sugar refineries Central Europe Sugar factories Liquid sugar factories Bioethanol plants Eastern Europe Sugar factories Sugar refineries
H1 H1 2011/2012 2010/2011
Change absolute
5 2
5 2
– –
5 2 1
5 2 1
– – –
3 1
3 1
– –
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2
Facts and trends
Nordzucker Half-Year Report 2011/2012
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Nordzucker facts and trends Contents The Management Team
4
Letter from the Management Board
5
Sites in Europe
6
Management Report
7
Earnings, net assets and financial position
7
Revenues and earnings
7
Balance sheet and cash flow
8
Sugar beet developments
9
Supplementary report
9
Outlook
9
Income statement
10
Statement of comprehensive income
10
Cash flow statement
11
Balance sheet
12
Statement of changes in shareholders’ equity
14
Financial calendar
15
Good result for the half-year In the first half of the 2011/2012 financial year, Nordzucker achieved revenues of EUR 900.3 million. Although less sugar was available than in the previous year, revenues were only slightly down on the first half of 2010/2011. Net income for the first half came in at EUR 72.6 million – more than twice the figure for the first six months of the previous period. Campaign starts successfully This year’s processing phase started on 7 September – some two weeks earlier than in 2010. As large quantities of beet are anticipated, processing is expected to last until the middle of January throughout the Group, with the exception of Finland. The weather was good for beet growth and sugar content this year. In terms of sugar yields per hectare, we expect the harvest to far exceed the average seen in recent years, especially in Central Europe, Eastern Europe and Denmark.
3
The Management Team
Nordzucker Half-Year Report 2011/2012
Team at anthe dertop: Spitze: A Starkes strong team Mats Liljestam (born in 1959) ●
Chief Marketing and Sales Officer at Nordzucker AG
Dr Michael Noth (born in 1962)
Hartwig Fuchs (born in 1959)
Dr Niels Pörksen (born in 1963)
Axel Aumüller (born in 1957)
● Chief Financial Officer at Nordzucker AG
● Chief Executive Officer at Nordzucker AG
● Chief Agricultural Officer at Nordzucker AG
● Chief Operating Officer at Nordzucker AG
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4
Letter from the Management Board
Nordzucker Half-Year Report 2011/2012
Dear Shareholders, We finished the first half of the 2011/2012 financial year with a significant increase in earnings compared with the same period of the previous year. This was thanks to both good market conditions and the successful implementation of various cost-cutting measures at our factories and offices. The acquisition of Nordic Sugar is paying off, the optimisation of our investment portfolio has eliminated a number of expenses, and we have succeeded in significantly reducing our level of debt. On top of all that, we expect the beet harvest to be exceptionally good and produce a large amount of sugar this year and the campaign should last well into January. All in all, the prospects are extremely promising. Nevertheless, we still face some major challenges – including those arising from the consolidation of the European sugar market. Meanwhile, discussions are well under way within the EU’s decision-making bodies regarding the extension of the sugar market regime post-2014/2015. Although we currently expect the regime to remain in place and also will actively lobby for this, we must be prepared for forthcoming and possible changes in the sugar market. We must not allow ourselves to become complacent in the light of our achievements: the consolidation of the sugar market is already continuing apace. One of our prime objectives is to keep safeguarding and strengthening our independence and our market position as the second strongest on the market. To achieve this, we will keep consistently pursuing our initiative to enhance profitability over the next few years. We will also step up our joint efforts to integrate and internationalise our company. Yours sincerely, Nordzucker AG The Executive Board
Hartwig Fuchs
Axel Aumüller
Dr Michael Noth
Mats Liljestam
Dr Niels Pörksen
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5
Sites in Europe
Nordzucker Half-Year Report 2011/2012
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6
Sites in Europe
Headquarters Nordzucker D
1
Braunschweig
Head Office A
2
DK
3
Nordzucker Eastern Europe GmbH, Vienna Nordic Sugar, Køpenhavn
Sugar factories D
DK S
4
Clauen
5
Nordstemmen
6
Uelzen
7
Klein Wanzleben
8
Schladen
9
Nakskov
10
Nykøbing
11
Örtofta
FIN 12
Säkylä
LT
13
Kèdainiai
PL
14
Opalenica
15
Chełmża
SK
16
Trenčianska Teplá
D
17
Liquid sugar factory
Northern Europe 12 20
11
Groß Munzel 18
3
Liquid sugar factory Nordstemmen
9
19
13
10
Refineries S
19
15
Arlöv
FIN
20
Porkkala
PL
21
Chełmża
21
6 7 4 1 24 8 18
17
14
5
Eastern Europe
Sugar factories – non-consolidated
22
minority stake CZ
22
Dobrovice
23
České Meziříčí
Other locations D
24
fuel 21, Klein Wanzleben
23
Central Europe
16 2
Management report
Nordzucker Half-Year Report 2011/2012
Earnings, net assets and financial position Consolidated revenues
The half-year financial report of the Nordzucker Group as of 31
in EUR m
August 2011 has been prepared in accordance with the International Financial Reporting Standards (IFRS) adopted and published by
914
900
the International Accounting Standards Board (IASB). Supplementary provisions of German commercial law have been taken into account. The financial statements comply fully with IFRS and give a true and fair view of the net assets, financial and earnings position of Nordzucker AG and its consolidated subsidiaries as well as its associated companies and joint ventures. The consolidated financial statements of Nordzucker AG include all subsidiaries with their financial statements as of 31 August 2011, the only exception being
H1 2010/11
H1 2011/12
Norddeutsche Flüssigzucker GmbH & Co. KG due to its different financial year, which ends as of 30 June 2011. No changes have been made to the accounting methods used for the preparation of the consolidated financial statements as of 28 February 2011. For more information please see the Notes section of the
Consolidated EBIT
2010/2011 Annual Report.
in EUR m
112
The production of sugar is a seasonal business. The production stage, from the beginning of September until the middle of Janu-
83
ary, is entirely in the second half of the financial year. This should be taken into consideration when interpreting the results of the first half-year. In the 2010/2011 financial year, the company also disposed of H1 2010/11
H1 2011/12
its investments in the Hübner Group (December 2010) and the seeds business (September 2010). Earnings in the first half of the previous year were negatively affected by one-off expenses caused by Hübner.
Revenues and earnings In the first half of the 2011/2012 financial year, the Nordzucker Group generated revenues of EUR 900.3 million, which was only slightly lower than the previous year’s total (EUR 914.0 million). Prices were higher than in the previous year, which almost compensated for the fall in sales volumes. Overall, compared to the previous year, more sugar was imported and less of our own sugar sold. This drove up the cost of materials and services from EUR 167.4 million to EUR 278.0 million, while the reduction in stocks was comparably lower at EUR 317.6 million (previous year: EUR 449.0 million). At EUR 81.2 million, personnel expenses remained roughly the same as in the previous year (EUR 81.4 million). Depreciation, amortisation and impairment totalled EUR 43.1 million, compared to EUR 48.9 million in the previous year; other operating expenses fell from EUR 100.7 million to EUR 80.3 million. The Hübner Group and the Hungarian subsidiary impacted on both items in the previous year.
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7
Management report
Nordzucker Half-Year Report 2011/2012
Consolidated net income in EUR m
73
The operating result (EBIT) of the Nordzucker Group totalled EUR 112.0 million in the first half of the 2011/2012 financial year, compared to EUR 83.1 million in the first half of the previous year. Interest expense fell slightly, coming in below the previous year’s EUR 26.9 million at EUR 25.5 million. A new loan agreement
34
with much better terms was signed in June 2011. This initially led to negative one-off effects of approximately EUR 12.9 million. However, interest expense will fall significantly in the second half H1 2010/11
H1 2011/12
of the current financial year due to both the new loan agreement and the repayment of the financial liabilities entered into for the purchase of Nordic Sugar. Overall, consolidated net income for the period more than dou-
Consolidated balance sheet structure as of August 31, 2011 in EUR m 1,689
1,689
bled, amounting to EUR 72.6 million, compared to EUR 33.8 million in the same period of the previous year.
Cash flow and balance sheet The cash flow from operating activities totalled EUR 291.5 million
51% 65%
in the first half of the 2011/2012 financial year, compared to EUR 398.2 million in the same period of 2010/2011. The reduction in stock was considerably lower than in the previous year, which was the main reason for this development. Investment in property,
17% 18% Assets
31%
18%
plant and equipment remained almost unchanged at EUR 29.5 million, having stood at EUR 30.2 million in the previous year. Cash flow from investing activities totalled EUR -101.3 million, primarily
Equity &
as a result of the payment of the final instalment for the purchase
liabilities
of Nordic Sugar (EUR 73.6 million including interest), compared to a positive cash flow of EUR 14.9 million in the same period of
Non-current assets
Equity
Inventories
Non-current liabilities
Other current assets
Current liabilities
the previous year, due first and foremost to the sale of the Serbian investments. Cash flow from financing activities amounted to EUR -166.4 million, compared to EUR -346.6 million in the previous year. At the end of the first half, the Nordzucker Group had cash and cash equivalents of EUR 73.6 million. The Nordzucker Group’s consolidated balance sheet total fell from EUR 1,907.0 million in the same period in 2010/2011 to EUR 1,688.5 million on the reporting date. This primarily resulted
Consolidated net debt
from the optimisation of the investment portfolio and the repay-
In EUR m
ment of the financial liabilities entered into for the purchase of Nordic Sugar.
251
148
The positive business developments prompted a rise in equity to EUR 854.6 million, compared to EUR 738.8 million in the previous first half. Together with the reduction in total assets, this increase led to an equity ratio of 50.6 per cent (previous year: 38.7 per cent).
H1 2010/11
H1 2011/12
The company was able to considerably reduce its net debt. It amounted to EUR 148.0 million, down from EUR 250.1 million one year earlier.
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8
Nordzucker Half-Year Report 2011/2012
Management report
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The weather in 2011 has been perfect for beet growth and sugar formation. Plenty of sun in the spring followed by rainy summer months accelerated the beets’ early development and mass growth.
Supplementary report There have been no significant changes to the situation of the company for the current year since the reporting date of the interim financial statements.
Outlook The company recorded a pleasing result for the first half of 2011/2012 thanks to favourable market conditions. Falling sales volumes were offset by price increases in the quota sugar business. In light of the good market environment, the Group still anticipates that revenues will develop well in the current financial year. The price increases achieved on the market for the new sugar marketing year lead us to expect revenues will outstrip the previous year’s figure. However, it is likely that both European and global sugar markets will cool down in the medium term. Lower interest payments and savings from the efficiency programme “Profitability plus” are having a positive impact on results. It is therefore currently to be expected that we will far exceed the previous year’s result and post outstanding figures.
9
Nordzucker Half-Year Report 2011/2012
Consolidated half-year financial statements
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10
Consolidated half-year financial statements Consolidated income statement for the period from March 1 to August 31, 2010, Nordzucker AG, Braunschweig
1/3/2011 - 31/8/2011 TEUR
1/3/2010 - 31/8/2010 TEUR
Change TEUR
Revenues
900,316
913,967
-13,651
Decrease in finished goods and work in progress
317,614
448,977
-131,363
Own work capitalised Total revenues Other operating income Cost of materials and services
1,406
1,865
-459
584,108
466,855
117,253
10,576
14,450
-3,874
278,010
167,447
110,563
Personnel expenses
81,182
81,401
-219
Depreciation of property, plant and equipment, amortisation and impairment of intangible assets
43,143
48,908
-5,765
Appreciation of intangible assets and property, plant and equipment Other operating expenses Operating result (EBIT)
0
319
-319
80,301
100,735
-20,434
112,048
83,133
28,915
Net interest a) Interest income and similar income b) Interest expenses and similar expenses
1,217
543
674
25,496
26,877
-1,381
-24,279
-26,334
2,055
Net income/loss from investments a) Net income/loss from associated companies and joint ventures accounted for under the equity method
0
0
0
3,779
1,684
2,095
3,779
1,684
2,095
a) Other financial income
3,637
12,223
-8,586
b) Other financial expenses
3,268
16,003
-12,735
369
-3,780
4,149
b) Other net income from investments
Other net financial income/loss
Net financial income/loss
-20,131
-28,430
8,299
Earnings before taxes
91,917
54,703
37,214
Income taxes
19,308
21,155
-1,847
Result shutdown/sale of operations Consolidated net income Consolidated net income attributable to minority interests Consolidated net income attributable to shareholders of the parent company
0
247
-247
72,609
33,795
38,814
2,234
2,002
232
70,375
31,793
38.582
Statement of comprehensive income Consolidated net income Currency conversion for foreign operations Net result of cash flow hedges Income taxes
72,609
33,795
38,814
-12,925
13,218
-26,143
-1,976
-1,611
-365
664
452
212
Other net income/loss after taxes
-1,312
-1,159
-153
Total net income/loss after taxes
58,372
45,854
12,518
2,234
1,997
237
56,138
43,857
12,281
Attributable to minority shareholders Attributable to shareholders of the parent company
Nordzucker Half-Year Report 2011/2012
Consolidated half-year financial statements
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11
Consolidated cash flow statement for the period from March 1 to August 31, 2011, Nordzucker AG, Braunschweig
1/3/2011 - 31/8/2011 TEUR
1/3/2010 - 31/8/2010 TEUR
Change TEUR
Earnings before taxes
91,917
54,702
37,215
Interest and similar income
-1,217
-543
-674
Interest and similar expenses
25,496
26,877
-1,381
Net depreciation, amortisation and impairment on non-current assets
43,143
48,737
-5,594
0
0
0
12,202
-7,163
19,365
-2
-2
0
0
0
0
Depreciation, appreciation on financial investments Changes in non-current provisions Other non-cash expenses Net loss/income from associated companies Earnings from discontinued operations
0
247
-247
Changes in finished goods and work in progress
317,614
448,977
-131,363
Changes in current provisions
-18,094
18,054
-36,148
-543
827
-1,370
-33,160
-53,255
20,095
-126,075
-116,601
-9,474
Proceeds on disposal of non-current assets Changes in inventories, trade receivables and other assets not attributable to investing or financing activities Changes in trade payables and other liabilities not attributable to investing or financing activities Interest received in the financial year Interest paid in the financial year Taxes paid in the financial year Cash flow from operating activities Proceeds on disposal of property, plant and equipment Payments for investments in property, plant and equipment Proceeds on disposal of intangible assetss Payments for investments in intangible assets Proceeds on disposal of financial assets Payments for investments in financial assets Proceeds from the sale of consolidated companies and other business unit Payments for the acquisition of consolidated companies and other business units Cash flow for investing activities Payments to shareholders (dividends) Proceeds from borrowing
1,217
543
674
-9,566
-24,092
14,526
-11,439
867
-12,306
291,493
398,175
-106,682
3,290
2,777
513
-29,457
-30,183
726
0
3,889
-3,889
-2,327
-5,952
3,625
4
4,590
-4,586
-3
-230
227
834
40,000
-39,166
-73,637
0
-73,637
-101,296
14,891
-116,187
-22,879
-1,342
-21,537
40,552
22,625
17,927
Loan repayments
-184,036
-367,836
183,800
Cash flow from financing activities
-166,363
-346,553
180,190
Changes in cash and cash equivalents
23,834
66,513
-42,679
Cash and cash equivalents at the beginning of the period
50,289
113,942
-63,653
Cash from the acquisition of consolidated companies and other business units Additions through mergers/other changes Cash and cash equivalents at the end of the period
0
0
0
-497
-184
-313
73,626
180,271
-106,645
Nordzucker Half-Year Report 2011/2012
Consolidated half-year financial statements
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Consolidated balance sheet as of August 31, 2011, Nordzucker AG, Braunschweig
Assets
28/2/2011 TEUR
31/8/2011 TEUR
31/8/2010 TEUR
Intangible assets
179,897
174,910
184,177
Property, plant and equipment
906,056
887,017
914,247
8,516
8,022
8,713
Non-current assets Fixed assets
Investment property Financial investments Shares in associated companies and joint ventures accounted for under the equity method Other financial investments
3,838
3,838
8,409
20,477
20,474
18,088
24,315
24,312
26,497
1,118,784
1,094,261
1,133,634
32
0
628
1,530
1,442
1,676
1,562
1,442
2,304
Receivables and other assets Financial assets Other assets
Deferred taxes
5,383
4,283
8,448
1,125,729
1,099,986
1,144,386
Raw materials, consumables and supplies
40,836
60,864
48,241
Work in progress
17,981
82,588
75,859
533,205
141,927
139,811
592,022
285,379
263,911
155,897
182,868
187,689
28
32
284
Current assets Inventories
Finished goods and merchandise
Receivables and other assets Trade receivables from external companies Receivables from related parties Current income tax receivables
39
1,501
14,711
Financial assets
21,061
9,035
19,759
Other current assets
35,730
36,056
26,120
212,755
229,492
248,563
50,289
73,627
180,271
855,066
588,498
692,745
826
27
69,892
855,892
588,525
762,637
1,981,621
1,688,511
1,907,023
Cash and cash equivalents Assets held for sale
12
Nordzucker Half-Year Report 2011/2012
Consolidated half-year financial statements
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Consolidated balance sheet as of August 31, 2011, Nordzucker AG, Braunschweig
Shareholders‘ equity and liabilities
28/2/2011 TEUR
31/8/2011 TEUR
31/8/2010 TEUR
Subscribed capital
123,651
123,651
123,651
Capital reserves
127,035
127,035
127,035
Retained earnings
471,569
520,077
416,583
54,983
40,747
31,586
777,238
811,510
698,855
41,497
43,066
39,903
818,735
854,576
738,758
134,117
133,036
131,509
19,218
30,723
33,819
275,892
188,959
407,664
Shareholders‘ equity
Other comprehensive income Equity attributable to shareholders of the parent company Minority interests
Non-current provisions and liabilities Provisions for pensions and similar obligations Other provisions Financial liabilities Liabilities towards related parties
5,500
5,500
5,500
Other financial liabilities
1,447
1,362
1,783
Other liabilities
23,763
22,179
25,162
Deferred taxes
160,015
152,722
158,150
619,952
534,481
763,587
Current provisions and liabilities Provisions for pensions and similar obligations
5,277
5,277
5,268
Other provisions
53,051
34,868
52,222
Financial liabilities
87,880
32,667
22,698
Current income tax liabilities
27,444
35,609
28,437
215,187
104,896
105,996
Liabilities towards related parties
12,313
12,689
11,056
Other financial liabilities
87,457
12,900
84,560
Other liabilities
54,325
60,548
70,948
542,934
299,454
381,185
0
0
23,493
1,981,621
1,688,511
1,907,023
Trade payables
Liabilities from discontinued operations
13
Consolidated half-year financial statements
Nordzucker Half-Year Report 2011/2012
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Consolidated statement of changes in shareholders’ equity for the consolidated quarterly financial statements as of August 31, 2011, Nordzucker AG, Braunschweig
Equity attributable to shareholders of the parent company TEUR
Minority interests TEUR
Total equity TEUR
19,521
654,501
89,498
743,999
Subscribed capital TEUR
Capital reserves TEUR
Other Retained comprehensive earnings income TEUR TEUR
123,651
127,035
384,294
Currency effects
0
0
31,793
0
31,793
2,002
33,795
Fair value adjustment
0
0
0
12,064
12,064
-5
12,059
As of 01/3/2010
Total earnings recognised directly in equity
0
0
31,793
12,064
43,857
1,997
45,854
Dividend payment
0
0
0
0
0
-1,346
-1,346
0
0
496
1
497
-50,246
-49,749
As of 31/8/2010
Others
123,651
127,035
416,583
31,586
698,855
39,903
738,758
As of 01/3/2011
818,735
123,651
127,035
471,569
54,983
777,238
41,497
Currency effects
0
0
70,375
0
70,375
2,234
72,609
Fair value adjustment
0
0
0
-14,237
-14,237
0
-14,237
Total earnings recognised directly in equity
0
0
70,375
-14,237
56,138
2,234
58,372
Dividend payment
0
0
-22,219
0
-22,219
-786
-23,005
Others
0
0
352
1
353
121
474
123,651
127,035
520,077
40,747
811,510
43,066
854,576
As of 31/8/2011
Shareholders‘ structure Nordzucker AG EUR 123.7m share capital
Nordzucker Holding Aktiengesellschaft 76.2 %, EUR 94.3m
Union-Zucker Südhannover GmbH 10.8 %, EUR 13.4m
Nordharzer Zucker AG 7.8 %, EUR 9.7m
Direktaktionäre 5.2 %, EUR 6.3m
14
Important dates
Financial calendar Publications 14 October 2011
Publication of the Q2 Interim Report 2011/2012
13 January 2012
Publication of the Q3 Interim Report 2011/2012
10 July 2012
Annual General Meeting of Nordharzer Zucker Aktiengesellschaft
11 July 2012
Annual General Meeting of Nordzucker Holding AG
12 July 2012
Annual General Meeting of Nordzucker AG
Online publications The following publications can be downloaded from www.nordzucker.de: • Annual Report • Interim reports • Statement of compliance • Sustainability Report
Nordzucker AG KĂźchenstraĂ&#x;e 9 38100 Braunschweig Germany Telephone: +49 (0)531 2411 0 Fax: +49 (0)531 2411 100 info@nordzucker.de www.nordzucker.de Corporate Communications Klaus Schumacher Telephone: +49 (0)531 24 11 366 pr@nordzucker.de Investor Relations Bianca Deppe-Leickel Telephone: +49 (0)531 2411 335 ir@nordzucker.de Shares register Claus-Friso Gellermann Telephone: +49 (0)531 24 11 118 aktien@nordzucker.de
Printed copies of this Interim Report for the Nordzucker Group are also available in German. Alternatively, the report can be downloaded in German or English from the internet under www.nordzucker.de from the download center as a PDF.