Nordzucker Interim report 9 Months 2017/18

INTERIM REPORT FINANCIAL YE AR 2017/2018 9 MONTHS / 1 MARCH TO 30 NOVEMBER 2017

2

INTERIM REPORT

KEY FIGURES NINE MONTHS 2017/2018 THE SUGAR MARKET CORNERSTONES OF THE FIRST NINE MONTHS 2017/2018

KEY FIGURES NINE MONTHS 2017/2018 NET INCOME AND RATE OF RETURN

1/3/2017 – 30/11/2017

1/3/2016 – 30/11/2016

Change

1,284

1,307

–23

Revenues

EUR m

EBITDA

EUR m

235

163

72

%

18.3

12.5

5.8

EUR m

184

107

77

%

14.3

8.2

6.1

EUR m

143

82

61

%

10,9

6,0

4,9

%

9.5

5.9

3.6

1/3/2016 – 30/11/2016

Change

EBITDA margin1 EBIT EBIT margin2 Consolidated net income before minority interests Return on sales

3

Return on equity4 1 2

EBITDA / revenues EBIT / revenues

3

onsolidated net income C (after minority interests) / revenues

Consolidated net income (after minority interests) / shareholders’ equity

4

1/3/2017 – 30/11/2017

CASH FLOW AND INVESTMENTS

Cash flow from operating activities

EUR m

299

268

31

Cash flow from investing activities

EUR m

–177

–58

–119

Free cash flow1

EUR m

122

210

–88

Investment in property, plant and equipment and intangible assets

EUR m

68

57

11

1

Cash flow from operating activities + cash flow from investing activities

1/3/2017 – 30/11/2017

BALANCE SHEET FIGURES

1/3/2016 – 30/11/2016

Change

Total assets

EUR m

2,254

2,191

63

Shareholders’ equity

EUR m

1,461

1,347

114

Equity ratio

%

65

61

4

Debt capital

EUR m

793

844

–51

Capital employed

EUR m

1,409

1,450

–41

Financial liabilities

EUR m

7

13

–6

Cash and cash equivalents

EUR m

381

382

–1

Net debt (-)/ Investment (+)1

EUR m

374

369

5

1

Cash and cash equivalents – financial liabilities

THE SUGAR MARKET EU PRICES AND WORLD MARKET PRICES FOR SUGAR, 2006 – 2017 Euro 800 700 600

420 €/t

500 400 300

332 €/t

200 100 JUL 06

DEC 06

JUN 07

DEC 07

JUN 08

EU market price Euro/t

DEC 08

JUN 09

DEC 09

JUN 10

DEC 10

JUN 11

DEC 11

JUN 12

DEC 12

JUN 13

DEC 13

JUN 14

DEC 14

JUN 15

DEC 15

JUN 16

DEC 16

JUN NOV 17 17

Global market price Euro/t

Source: EU-Price-Reporting, 21 December 2017 and for the world market, London No. 5

N o r dzu cker AG

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

3

CONTENTS 4 L E T T ER FRO M T H E E XEC U T I V E BOA R D

10 C O NSO L I DAT ED S TAT EM EN T O F

7 E A R N I N GS A N D FI N A N CI A L P OSI T I O N

11 CO NSO L I DAT ED C A SH FLOW S TAT EM EN T

­CO M PR EH ENSI V E I N CO M E

A N D N E T ­A SSE TS 9 E V EN TS A F T ER T H E B A L A N CE SH EE T DAT E 9 O U T LO O K 10 C O NSO L I DAT ED I N CO M E S TAT EM EN T

12 CO NSO L I DAT ED B A L A N CE SH EE T 14 C O NSO L I DAT ED S TAT EM EN T O F CH A N G E S I N SH A R EH O L D ER S‘ EQ U I T Y 15 FI N A N CI A L C A L EN DA R / O N L I N E PU B L I C AT I O NS

CORNERSTONES OF THE FIRST NINE MONTHS 2017/2018

GOOD E ARNINGS – DIFFICULT MARKET SITUATION

2017/2018 CAMPAIGN: GOOD YIELDS – HE AV Y R AIN

In the first nine months of the 2017/2018 financial year,

The campaign should be finished in all Nordzucker

Nordzucker generated revenues of EUR 1,284.4 mil-

plants by mid- to late January 2018. Beet processing

lion. This was EUR 22.6 million lower than in the same

was hampered in almost all regions by heavy rainfall.

period of the previous year. The decline in revenues

Wet soil in the fields not only made harvesting more

was mainly due to lower revenues for bioethanol and

difficult but also meant that the beet arrived at the

by-products. Lower sales volumes in sugar were offset

plants with unusually large amounts of soil tare. The

by higher prices in the first nine months of the financial

­challenges posed by the weather also meant that work

year 2017/2018. Overall, Nordzucker generated profit

at the plants was more demanding, but the campaign

for the period of EUR 143.5 million (prior-year p ­ eriod:

ran without serious disruption.

EUR 81.7 million) with the help of cost reductions.

However, the market situation became much worse

SHARP FALL IN EU SUGAR PRICE

as a result of the former sugar market regime coming to an end, meaning that the anticipated fall in prices

Current price reporting puts the sugar price in the EU

in the fourth quarter are not expected to be offset by

at just EUR 420 per tonne as of 31 October 2017. This

­further cost reductions.

is a sharp decline in the price, since in prior months,

QUOTA REGIME FOR SUGAR IN THE EU IS OVER

EU prices were very stable, at around the EUR 500 mark per tonne. The world market price for sugar also fell significantly. In November, it came to EUR 332 per tonne (London No. 5). In February 2017, i.e. at the

The end of the old sugar market regime means that

close of the financial year 2016/2017, the world market

quotas no longer apply to sugar as of 1 October 2017.

price was still EUR 513 per tonne. Anticipated global

Since then, there have been no volume limits in the

production surpluses, rising stock levels and good har-

EU sugar market. The export limit imposed by the

vests in key culti­vation regions – including in Europe –

WTO ended at the same time. A substantial produc-

are continuing to put pressure on sugar prices.

tion surplus is expected in the EU for the 2017/2018 campaign. The regulation on the minimum beet prices to be paid to beet growers was lifted along with the quota regime.

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

N o r dzu cker AG

4

INTERIM REPORT

LETTER FROM THE EXECUTIVE BOARD

HARTWIG FUCHS Chief Executive Officer

AXEL AUMÃœLLER Chief Operating Officer

ERIK BERTELSEN Chief Marketing Officer

DR LARS GORISSEN Chief Agricultural Officer

DR MICHAEL NOTH Chief Financial Officer

N o r dzu cker AG

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

5

DE AR SHAREHOLDERS, We closed the first nine months of the financial year 2017/2018 with pleasing earnings. Despite a slight fall in revenues, we were able to increase profit for the period to around EUR 143 million. This demonstrates the ­benefits we have reaped from our successful cost-saving programmes and our long-term contract portfolio with customers and suppliers.

Current developments on the world market, with low prices and considerable overproduction in the EU, which we have been critical of from the start, are now posing enormous challenges for the entire industry. In the months ahead, we are reckoning with strong competition and declining sugar prices. In line with our forecast, we are expecting earnings for 2017/2018 to be significantly higher than last year. However, in the following year, we will have to cope with a substantial decline.

In this demanding market phase, it is more important than ever to convince our customers every single day of the quality of our products and of the dependability of our supplies. Sugar production begins in the field, where we ensure, together with our beet growers, that our plants continue to be well supplied with beet in the future. The challenges posed by the weather, with unusually heavy rainfall during this campaign, have demonstrated to us once again that our growers, logistics partners and employees can work together to overcome even the greatest difficulties. Ultimately, we can look back on a campaign that brought us good yields and that went off almost without a hitch, in technical terms.

Low prices and increased competition call for skilful handling of the market and dependability with regard to our customers and beet growers. As a result, every single one of us at Nordzucker is called upon to confront this situation. In the future, it will be even more crucial than in prior years to cut costs consistently, while prudently identifying what customers expect from us. But that’s not all. Developing new services and products, improving product properties, increasing efficiency and productivity and strengthening our sales channels for exports are just some of the measures we will concentrate on in the future. A consolidation phase is about to start in the EU sugar market. For us, as one of the largest sugar producers in Europe, with strong financial resources, this tense market situation primarily presents opportunities: for growth and for success.

Let’s stand side by side to confront the challenges we expect in the phase ahead. Thank you for your support and for your confidence.

Yours sincerely, Nordzucker AG The Executive Board

Hartwig Fuchs

Axel Aumüller

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

Erik Bertelsen

Dr Lars Gorissen

Dr Michael Noth

N o r dzu cker AG

6

INTERIM REPORT

SITES IN EUROPE EARNINGS AND FINANCIAL POSITION AND NET ASSETS

SITES IN EUROPE

26

13 12 25

22

23 11 8 27 18

2 9

10

14 24

5 1 6 3 7 4

15 16

21 19

20 17

GROUP HEADQUARTERS D 1 Braunschweig

REGIONAL ADMINISTRATION DK 2 Copenhagen

SUGAR PLANTS AND REFINERIES D

DK S

3

Clauen

4

Nordstemmen

5

Uelzen

6

Klein Wanzleben

7

Schladen

8

Nakskov

9

Nykøbing

10

Arlöv

28 11

Örtofta

12

Porkkala

13

Säkylä

LT

14

Kèdainiai

PL

15

Chełmża

16

Opalenica

17

Trenč ianska Teplá

FIN

SK

LIQUID SUGAR PLANTS

OTHER SITES

SALES SITES

D

DK

2 NP Sweet. Copenhagen

EE

22 Tallinn

18 Groß Munzel

D

6 Bioethanol. Kl, Wanzleben

LV

23 Riga

S

10 Arlöv

B

FIN

12 Porkkala

4 Nordstemmen

21 Brussels office

SUGAR PLANTS – NON-CONSOLIDATED MINORITY HOLDINGS CZ

LT

24 Vilnius

NO

25 Oslo

IS

26 Reykjavík

IE

27 Dublin

GR

28 Athens

19 Dobrovice 20 Ceské Meziříčí

N o r dzu cker AG

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

7

E ARNINGS AND FINANCIAL POSITION AND NET ASSETS

GENER AL REMARKS

produced from the start of May until the end of July 2017. Revenues from by-products were lower than in

The interim financial statements as of 30 November

the comparative period, primarily as a result of lower

2017 for Nordzucker AG (Küchenstrasse 9, 38100

sales volumes for pellets. Lower sales volumes for sug-

Braunschweig, Germany) have been prepared in accor-

ar were offset by higher prices. Prices for sugar on the

dance with the International Financial Reporting Stan-

spot markets did fall sharply over the first nine months

dards (IFRS) adopted and published by the Interna-

of the financial year 2017/2018 but long-term contracts

tional Accounting Standards Board (IASB) and the IFRS

meant that prices were still higher than in the same

Interpretations Committee (IFRS IC) as applicable in

period of the previous year. Sales prices for sugar have

the European Union (EU-IFRS). The financial statements

already sunk by considerably more than 10 per cent

comply fully with EU-IFRS and give a true and fair view

since the end of the sugar market regime on 1 October

of the net assets, financial and earnings ­p osition of

2017, in line with the entire sugar market.

Nordzucker AG and its consolidated subsidiaries, joint ventures and associated companies (herein­after known

Production costs came to EUR 921.5 million, well

as ‘Nordzucker Group’ or ‘Group’).

below the figure of EUR 1,022.7 million in the same period of the previous year. The decrease was due to

No changes have been made to the accounting poli­

lower sales volumes in sugar, a year-on-year decline in

cies used for the preparation of the annual IFRS con-

the use of purchased sugar and lower sales volumes in

solidated financial statements as of 28 February 2017.

bioethanol and by-products.

These can be found in the Annual Report 2016/2017 (www.nordzucker.de/en).

SE ASONAL SUGAR PRODUC TION

Sales costs decreased to EUR 117.9 million, mainly due to lower freight costs alongside lower sales volumes and lower expenses for external storage (prior-year period: EUR 120.8 million). Administrative expenses came to EUR 60.1 million, slightly higher than the figure

The production of sugar is a seasonal business. The

of EUR 58.3 million in the same period of the previous

production phase, from the beginning of September

year. Other income increased slightly to EUR 15.3 mil-

until January, is entirely in the second half of the finan-

lion (prior-year period: EUR 12.9 million), with other

cial year. This should be taken into consideration when

expenses up significantly to EUR 16.7 million (prior-year

interpreting the third-quarter earnings.

period: EUR 10.9 million).

REVENUES AND E ARNINGS

At EUR 145.9 million, personnel expenses were roughly the same as last year (EUR 145.4 million). Depreciation,

In the first nine months of the 2017/2018 financial

amortization and impairment was down from the same

year, the Nordzucker Group generated revenues of

period of the previous year at EUR 51.8 million (prior­-

EUR 1,284.4 million, approximately 1.7 per cent less

year period: EUR 55.8 million).

than in the previous year. The decline in revenues was mainly due to lower sales volumes for bioethanol and

The operating result (EBIT) of the Nordzucker Group

by-products. Revenues from bioethanol decreased

totalled EUR 183.5 million in the first nine months of the

substantially compared with the previous period,

2017/2018 financial year, compared with EUR 107.1 mil-

due in particular to the fact that no bioethanol was

lion in the same period of the previous year.

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

N o r dzu cker AG

8

INTERIM REPORT

EARNINGS AND FINANCIAL POSITION AND NET ASSETS EVENTS AFTER THE ­B ALANCE SHEET DATE OUTLOOK

Net cash flow from investing activities came to

CONSOLIDATED EBIT in EUR m 200 180 160 140 120 100 80 60 40 20 0

EUR –176.8 million, much higher than the EUR –57.7 mil184

lion of the same period last year. In the reporting period, Nordzucker invested cash and cash equivalents with a net amount of EUR 110.0 million in current securi-

107

ties. Net investments in property, plant and equipment and in intangible assets (not including net investments in securities and ­other changes in financial assets) came

9 months 2016/17

9 months 2017/18

to EUR 67.7 million (2016/2017: EUR 58.3 million).

Financial income of EUR 8.8 million was significantly

Cash flow from financing activities came to

above the previous year’s figure of EUR 4.3 million.

EUR –63.5 million (prior-year period: EUR 0.8 million);

Financial expenses of EUR 8.1 million were also higher

the cash outflow resulted primarily from dividend pay-

than the previous year’s figure of EUR 6.1 million.

ments to the shareholders of Nordzucker AG.

In the first nine months of the 2017/2018 financial year,

Total consolidated assets came to EUR 2,254.1 million

the Nordzucker Group reported net income before

as of the end of the reporting period on 30 November

minority interests of EUR 143.5 million, well above the

2017 (30 November 2016: EUR 2,191.0 million).

net income of EUR 81.7 million in the same period of the previous year. The positive earnings were caused

Current financial assets went up significantly by

in particular by declining production costs, mainly due

EUR 149.6 million to EUR 155.5 million due to cash

to the successful cost-saving programme. The positive

being invested in current securities. On the other

earnings are also attributable to our long-term con-

hand, inventories fell sharply by EUR 80.7 million to

tract portfolio with customers and suppliers. All of

EUR 586.2 million, as did trade receivables, which were

the statements made in this section refer to the first

down by EUR 9.8 million to EUR 182.7 million.

nine months of the financial year; the market situation changed significantly when the sugar market regime ended. Expected price falls will no longer be offset by cost reductions, especially in the fourth quarter.

BREAKDOWN OF THE ASSETS AND LIABILITIES MAKING UP THE 30/11/2017 BALANCE SHEET TOTAL in EUR m

2,400 CONSOLIDATED NET INCOME FOR THE PERIOD in EUR m

2,254

2,000 40%

1,600 160

143

140 120 100 80

65%

1,200 26%

800 82

15%

400

60

34%

0

40 20 0

9 months 2016/17

2,254

9 months 2017/18

CASH FLOW AND BAL ANCE SHEET

Assets

20% Equity & liabilities

Non-current assets

Equity

Inventories

Non-current liabilities

Other current assets

Current liabilities

Trade payables decreased by EUR 22.8 million to EUR 280.5 million. By contrast, consolidated equity

Cash flow from operating activities of EUR 299.2 million

increased by EUR 114.0 million to EUR 1,461.2 million.

in the first nine months of the 2017/2018 financial year was higher than the previous year’s figure (EUR 267.8

Cash and cash equivalents exceeded financial liabilities

million). This is because Nordzucker’s earnings before

by EUR 373.8 million at the end of the reporting peri-

tax were EUR 78.9 million higher than in the same peri-

od as of 30 November 2017. At the end of the same

od a year ago. By contrast, working capital was deplet-

period in the previous year (30 November 2016), the

ed by much less in the first nine months of 2017/2018 than in the same period last year.

N o r dzu cker AG

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

9

excess amount was EUR 369.3 million. In the reporting period, a net amount of EUR 110.0 million was invested in liquid current securities, which are presented as current financial assets. As a result, liquidity has again improved significantly.

NET DEBT (–)/ INVESTMENT (+) in EUR m 500 400

369

374

9 months 2016/17

9 months 2017/18

300 200 100

EVENTS AF TER THE ­B AL ANCE SHEET DATE

0

There have been no events of particular importance after the end of the interim reporting period.

OUTLOOK The key figures for the Nordzucker Group for the first

indicators. In the financial year 2018/2019, the effects

nine months of the financial year 2017/2018 confirm the

of the price pressure will, however, be felt in full, which

positive outlook for the full financial year. Nonetheless,

will lead to a significant reduction in earnings based on

2017/2018 is a transitional period, because the current

current expectations. According to current estimates,

sugar market regime expired on 1 October 2017. Com-

the Nordzucker Group will report slightly positive

petition in Europe has already increased significantly as

earnings that are well below the cost of capital.

a result, and the influence of world market prices on EU sugar prices is stronger. Overproduction in the EU in

In the medium term, the expectation is that the Europe-

the 2017/2018 campaign will spur competition again,

an sugar market will stabilize again, after a market shake-

which is bound to have an impact on sugar prices.

out resulting from tough competition. The high economic potential of sugar beet enables European sugar

World market prices are also still under pressure and

producers to supply their customers on competitive

the US dollar has fallen considerably against the euro.

terms. The influence of the world market is expected to

Overall, the world market price has fallen very sharp-

increase further. The rising demand for sugar, especially

ly from EUR 513 per tonne of sugar in February 2017

in Asia and Africa, could nevertheless support prices on

to EUR 332 per tonne of sugar in November 2017,

the global market in the long term. As sugar is highly

based on London No. 5. Based on the good earn-

volatile, however, there will be years with fairly high

ings in the first nine months (EBIT and net income), it

prices as well as years with fairly low prices.

can be assumed that the performance for the full year 2017/2018 will be very positive. We expect to exceed

Nordzucker is a strong provider in Europe that will

the earnings of the financial year 2016/2017 significant-

make use of the opportunities on the markets and

ly. However, earnings will decline considerably in the

that is preparing intensively to do so. The company is

fourth quarter of 2017/2018; further price falls since

well set up to play an active role in the market consoli­

1 January 2018 can no longer be offset by price reduc-

dation and to further expand its position in Europe.

tions. Earnings in the fourth quarter of 2017/2018 are

Its capital structure is so solid that the company can

expected to stay positive, but well below the first three

also strengthen its core business further by means of

quarters of the financial year 2017/2018 and all the

investments. Growth opportunities outside of Europe

quarters in the previous year. But since the other quar-

can also be considered. Nordzucker has successfully

ters were successful, the Executive Board expects RoCE

dealt with all of the changes in Europe to date and has

for the full year 2017/2018 to at least cover the cost of

emerged from them even stronger. Even in a world

capital. RoCE is also expected to improve compared

without sugar quotas, the company will continue on

with the previous year, as are the other key financial

this successful path.

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

N o r dzu cker AG

10

INTERIM REPORT

CONSOLIDATED FINANCIAL STATEMENTS NORDZUCKER AG

CONSOLIDATED FINANCIAL STATEMENTS NORDZUCKER AG CONSOLIDATED INCOME STATEMENT Nordzucker AG, Braunschweig, Germany, for the period from 1 March 2017 to 30 November 2017

in EUR thousands

Revenues

1/3/2017 – 30/11/2017

1/3/2016 – 30/11/2016

Change

1,284,404

1,306,973

–22,569

Production costs

–921,516

–1,022,736

101,220

Gross profit

362,888

284,237

78,651

Sales costs

–117,893

–120,844

2,951

–60,087

–58,276

–1,811

15,315

12,896

2,419

Administrative expenses Other income Other expenses Operating result (EBIT) Financial income Financial expenses Result from companies accounted for using the equity method Earnings before tax Income taxes Consolidated net income of which attributable to non-controlling interests of which attributable to shareholders of the parent company

–16,691

–10,918

–5,773

183,532

107,095

76,437

8,776

4,301

4,475

–8,107

–6,107

–2,000

–245

–254

9

183,956

105,035

78,921

–40,499

–23,316

–17,183

143,458

81,719

61,739

3,942

2,855

1,087

139,516

78,864

60,652

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME in EUR thousands

Consolidated net income Remeasurement of defined benefit plans Deferred taxes on items of other comprehensive income not reclassified to the income statement Other comprehensive income from items not reclassified to the income statement Exchange differences on translating foreign operations Net result of cash flow hedges Deferred taxes on items of other comprehensive income reclassified to the income ­statement

1/3/2016 – 30/11/2016

Change

143,458

81,719

61,739

7,102

15

7,087

–2,104

3

–2,107

4,998

18

4,980

–4,464

–9,148

4,684

–509

1,542

–2,051

83

–353

436

–4,890

–7,959

3,069

Consolidated comprehensive income after taxes

143,566

73,778

69,788

of which attributable to non-controlling interests

3,945

2,853

1,092

139,621

70,925

68,696

Other comprehensive income from items reclassified to the income statement

of which attributable to shareholders of the parent company

N o r dzu cker AG

1/3/2017 – 30/11/2017

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

11

CONSOLIDATED CASH FLOW STATEMENT Nordzucker AG, Braunschweig, Germany, for the period from 1 March 2017 to 30 November 2017 1/3/2017 – 30/11/2017

1/3/2016 – 30/11/2016

Change

183,956

105,035

78,921

4,233

4,026

207

51,749

55,735

–3,986

Change in provisions

–24,553

–6,496

–18,057

Change in inventories

100,445

81,188

19,257

Change in trade receivables

–33,270

–67,101

33,831

Change in trade payables

58,691

121,542

–62,851

Change in other operating assets/liabilities

–9,165

–5,236

–3,929

Gains/losses on disposal of non-current assets

122

1,299

–1,177

Other non-cash expenses/income

177

34

143

Interest received in the financial year

288

6,977

–6,689

–1,338

–1,451

113

245

254

–9

–32,370

–28,049

–4,321

299,210

267,757

31,453

157

767

–610

–65,740

–57,727

–8,013

in EUR thousands

Earnings before tax Interest and similar income/expenses Depreciation, amortization and impairment/reversals of impairment of non-current assets

Interest paid in the financial year Result from companies accounted for using the equity method 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 assets Payments for investments in intangible assets Proceeds on disposal of financial assets Payments for investments in financial assets Proceeds from disinvestments in current securities Payments for investments in current securities Cash flow from investing activities Inflows and outflows arising from changes in equity Payments to shareholders (dividends) Proceeds from borrowing Loan repayments Cash flow from financing activities Changes in cash and cash equivalents Cash and cash equivalents at the beginning of the period Effect of foreign exchange rate changes Cash and cash equivalents at the end of the period

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

0

75

–75

–2,143

–1,375

–768

1,056

565

491

–150

–53

–97

34,996

0

34,996

–144,998

0

–144,998

–176,822

–57,748

–119,074

0

1

–1

–56,919

–4,963

–51,956

0

5,726

–5,726

–6,589

0

–6,589

–63,508

764

–64,272

58,880

210,773

–151,893

321,814

171,781

150,033

–55

–199

144

380,639

382,355

–1,716

N o r dzu cker AG

12

INTERIM REPORT

CONSOLIDATED FINANCIAL STATEMENTS NORDZUCKER AG

CONSOLIDATED BAL ANCE SHEET as of 30 November 2017, Nordzucker AG, Braunschweig, Germany ASSETS in EUR thousands

30/11/2017

30/11/2016

19,683

19,194

834,560

831,004

4,397

4,447

NON-CURRENT ASSETS Fixed assets Intangible assets Property, plant and equipment Investment property Financial investments Shares in companies accounted for using the equity method Other financial investments

6,422

7,053

23,033

23,375

29,455

30,428

888,095

885,073

679

439

Receivables and other assets Financial assets Other assets

Deferred taxes

784

2,383

1,463

2,822

3,137

4,560

892,695

892,455

60,349

70,738

CURRENT ASSETS Inventories Raw materials, consumables and supplies Work in progress Finished goods and merchandise

32,681

11,726

493,192

584,455

586,222

666,919

182,686

192,483

861

1,831

6,460

8,993

Receivables and other assets Trade receivables Receivables from related parties Current income tax receivables Financial assets Other assets

Cash and cash equivalents Current assets Assets held for sale

N o r dzu cker AG

155,511

5,890

49,002

40,046

394,520

249,243

380,639

382,355

1,361,381

1,298,517

30

0

1,361,411

1,298,517

2,254,106

2,190,972

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

13

EQUITY AND LIABILITIES in EUR thousands

30/11/2017

30/11/2016

Subscribed capital

123,651

123,651

Capital reserves

127,035

127,035

1,221,872

1,120,366

Shareholders’ equity

Retained earnings Other comprehensive income Equity attributable to shareholders of the parent company Non-controlling interests

–53,287

–65,782

1,419,271

1,305,270

41,888

41,903

1,461,159

1,347,173

211,802

222,439

48,025

45,934

Financial liabilities

1,380

7,061

Liabilities towards related parties

5,500

5,500

563

0

Non-current provisions and liabilities Provisions for pensions and similar obligations Other provisions

Other financial liabilities Other liabilities Deferred taxes

5,172

8,660

75,459

81,942

347,901

371,536

Current provisions and liabilities Provisions for pensions and similar obligations Other provisions Financial liabilities Current income tax liabilities Trade payables Liabilities towards related parties Other financial liabilities Other liabilities

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

9,565

9,647

38,936

45,839

5,486

5,992

31,364

21,887

280,455

303,202

33,768

27,821

5,485

9,309

39,987

48,566

445,046

472,263

2,254,106

2,190,972

N o r dzu cker AG

14

INTERIM REPORT

CONSOLIDATED FINANCIAL STATEMENTS NORDZUCKER AG FINANCIAL CALENDAR ONLINE PUBLICATIONS

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUIT Y Nordzucker AG, Braunschweig, Germany

in EUR thousands

As of 1/3/2016

Subscribed capital

Capital reserves

Retained earnings

Other comprehensive income

Equity attributable to shareholders of the parent company

123,651

127,035

1,046,339

–57,844

1,239,181

39,186

1,278,367

78,864

2,855

81,719

–7,939

–7,939

–2

–7,941

–7,939

70,925

2,853

73,778

–4,830

–4,830

–133

–4,963

–7

–7

–3

–10

Net income

78,864

Other comprehensive income Consolidated comprehensive income

78,864

Dividend payment Other

Total equity

As of 30/11/2016

123,651

127,035

1,120,366

–65,782

1,305,270

41,903

1,347,173

As of 1/3/2017

123,651

127,035

1,135,496

–53,392

1,332,790

41,731

1,374,521

Net income

139,516

139,516

3,942

143,458

105

105

3

108

105

139,621

3,945

143,566

–53,131

–53,131

–3,788

–56,919

–9

–9

0

–9

1,419,271

41,888

1,461,159

Other comprehensive income Consolidated comprehensive income

139,516

Dividend payment Other As of 30/11/2017

N o r dzu cker AG

Noncontrolling interests

123,651

127,035

1,221,872

–53,287

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

15

FINANCIAL CALENDAR 24 May 2018

Publication of the annual report 2017/2018

26 June 2018

Shareholders’ meeting Union-Zucker Südhannover GmbH

4 July 2018

Annual General Meeting Nordzucker Holding AG

5 July 2018

Annual General Meeting Nordzucker AG

ONLINE PUBLICATIONS The following publications can be downloaded from www.nordzucker.de/en • Annual Reports and Interim Reports • Declaration of compliance • Letter to shareholders Subscribe to the Interim Reports at www.nordzucker.de/en.

I N T ER I M R EP O RT 9 M O N T HS 2017/2018

N o r dzu cker AG

IMPRINT Nordzucker AG KĂźchenstrasse 9 38100 Braunschweig Germany Telephone: +49 (0) 531 2411-0 Fax: +49 (0) 531 2411-100 info@nordzucker.de www.nordzucker.de Communications & Public Affairs Christian Kionka Telephone: +49 (0) 531 2411-173 pr@nordzucker.de Investor Relations Bianca Deppe-Leickel Telephone: +49 (0) 531 2411-335 ir@nordzucker.de Share register Nicole Riedel-Elias Telephone: +49 (0) 531 2411-163 aktien@nordzucker.de Concept and design Kirchhoff Consult AG, Hamburg, Germany Photography Nordzucker archive Print Leinebergland Druck, Alfeld, Germany

Printed copies of this Interim Report for the Nordzucker Group are also available in German. Alternatively, the report is available online in German or English and can be downloaded as a PDF at www.nordzucker.de from the Download Centre.