Nordzucker AG Interim Report
Financial Year 2008/2009
Nine months
March 1 – November 30, 2008
Group figures and ratios
Operating business
Q3
2008/2009
Q3
2007/2008
9 months
2008/2009
9 months
2007/2008
Change
absolute
Revenues
EUR m
317
342
878
917
-39
Total revenues
EUR m
474
588
632
843
-211
Gross income
EUR m
89
111
164
288
-124
EBITDA
EUR m
50
53
128
124
4
EBIT
EUR m
30
3
74
52
22
Consolidated net income
EUR m
17
7
38
51
-13
Cash flow from operating activities
EUR m
32
18
205
202
3
Investments in property, plant and equipment EUR m
46
40
80
97
-17
21
19
2
9 months
2008/2009
9 months
2007/2008
Change
absolute
Investments in financial assets
EUR m
Balance sheet ratios as of 30/11
Balance sheet total
EUR m
1,682
1,684
-2
Equity
EUR m
725
698
27
Equity ratio
%
43
42
1
Debt capital
EUR m
957
986
-29
Financial liabilities
EUR m
366
218
148
Cash and cash equivalents
EUR m
52
138
-86
EUR m
(Cash and cash equivalents less financial liabilities)
314
80
234
Net debt
Structure figures
9 months
9 months
2008/2009 2007/2008
Change
absolute
Number of plants (total)
12
15
-3
Number of plants abroad
7
9
-2
Nordzucker markets and trends –
highlights of the third quarter 2008/2009
Contents
Letter from the
Management Board
4
Management report
6
Financial and earnings situation 6
Record-breaking sugar and beet yields
This year’s sugar beet campaign in Germany once again produced record-breaking
yields. With over 62 tonnes of beet per hectare and a sugar content exceeding 18
per cent, we achieved the best yields ever. At Group level too, Nordzucker recorded
above-average yields of 59 tonnes of beet per hectare with a sugar content of
approximately 18 per cent.
Revenues and earnings
6
Balance sheet and cash flow
7
Supplementary report
8
Outlook
8
Income statement
9
Cash flow statement
10
Balance sheet
11
Statement of changes in
shareholders’ equity
13
Financial calendar
14
Successful certifications in 2008
In the current financial year, Nordzucker again demonstrated that it complied with
international quality and environmental standards at all its plants. This assures our
customers that they can depend on product and process quality at Nordzucker at
all times.
2008 Sustainability Report published
One of Nordzucker’s key objectives is to achieve sustainable development which
ensures that the company continues to add value whilst respecting staff interests
and the environment. Our 2008 Sustainability Report entitled
“Acting Responsibly – Securing the Future”
provides up-to-date information about environmental issues, resources, staff and
company developments.
Nordzucker nine-month report 2008/2009
3
Letter from the Management Board
Dear Shareholders,
The third quarter of the 2008/2009 financial year was hallmarked by a campaign with
Hans-Gerd Birlenberg (born in 1954)
high yields and sugar contents.
• Chairman of the Management Board
of Nordzucker AG since 2007 and
Management Board member since 2006
Record yields in Germany and Slovakia
• Responsible for:
Finance & Controlling, Merger &
Acquisition, IT, Corporate Communications, Corporate Counsel, Human
Resources, Risk Management, Sales
(Eurosugar)
With more than eleven tonnes of sugar per hectare, this was Nordzucker’s best ever year
for cultivation in Northern Germany. Yields in Slovakia and Serbia also reached record
levels. However, there was far less beet to process in Serbia due to farming restrictions
and a very dry summer. As a consequence, just three of the four Serbian plants were
operational. In Poland, a lack of precipitation had a negative impact on beet and sugar
yields.
Restructuring influences results for the first nine months
The sugar industry in the European Union is still feeling the effects of the reformed sugar
market regime and the efforts being made to restructure as a result. While the quota surrenders have now been completed, the markets – especially on the outskirts of Europe –
are now adjusting to the new market conditions. In Nordzucker’s supply area, this primarily affects Poland and South-Eastern Europe. As of autumn 2009, sugar imports to the
Dr Hendrik Einfeld (born in 1945)
• Member of the Management Board of
Nordzucker AG since 2007
• Responsible for:
Agriculture, Raw Material Procurement
Germany and International
European Union from ACP and LDC countries are expected to increase. Nordzucker is
preparing to face this challenge together with its distribution partner Eurosugar S.A.S.
It has already taken the first step by investing in raw cane sugar refining at the Polish
plant Chelmza.
Acquisition of Danisco Sugar A/S
In the light of changes and consolidation within the market, the planned acquisition of
Danisco Sugar A/S is becoming increasingly important for the further development of
Nordzucker. This acquisition offers us the opportunity to pool our strength and experience in the sugar market with a profitable major sugar company. Given the size and significance of the transaction, the German competition authorities are examining the proposals intensively. All the other national competition authorities which had to be notified
of the transaction – Estonia, Lithuania, the Republic of Slovakia and Serbia – have now
given Nordzucker the go-ahead for the proposed acquisition of Danisco Sugar.
Dr Martin Wienkenhöver (born in 1956)
We would like to thank our staff and shareholders for their commitment and for placing
• Member of the Management Board of
Nordzucker AG since April 1, 2008
their trust in us.
• Responsible for:
Supply Chain (Purchasing, Production
Quality Management and Logistics)
Yours sincerely,
Nordzucker AG
The Management Board
Hans-Gerd Birlenberg
Dr. Henrik Einfeld
Dr. Martin Wienkenhöver
Nordzucker nine-month report 2008/2009
4
Nordzucker locations
Poland
Germany
Czech Republic
Slovakia
Hungary
Company headquarters in Braunschweig
Sugar plants
D
PL
1
Clauen
CLA
2
Nordstemmen
NST
3
Uelzen
UEL
Serbia
4
Klein Wanzleben
WZL
5
Schladen
SLA
6
Opalenica
OPA
Sugar plants –
7
Chelmza
CHE
non-consolidated minority stakes
CZ
SK
8
Trencianska Tepla
TRE
SRB
9
Bac
BAC
10
Vrbas
VRB
11
Pecinci
PEC
Other locations
D
D
12
Kovacica
KOV
13
Liquid sugar plant Nordstemmen
FNS
14
Liquid sugar plant Groß Munzel
FGM
HU
15
Dobrovice
DOB
16
Ceske Mezirici
CES
17
Ehrenkirchen (Hübner/ Medopharm) EHR
18
fuel 21
fuel
19
Hatvan
HAT
Nordzucker nine-month report 2008/2009
5
Management report
Financial and earnings situation
The quarterly financial statements for
suffered in particular from the quota
Consolidated revenues
the Nordzucker Group as of November
surrender. In Poland and Serbia, revenue
in EUR m
30, 2008, were prepared in accordance
trends were affected by the excess of
with the International Financial Report-
sugar available in these countries, which
ing Standards (IFRS) adopted and pub-
placed considerable pressure on the
lished by the International Accounting
market. However, Nordzucker expects
Standards Board (IASB). Supplementary
the markets in Southern and Eastern
regulations under commercial law were
Europe to become more balanced in
also taken into account. The consolidat-
future following the quota surrender
ed financial statements provide a true
in Poland and Hungary, prompting the
and fair view of the financial and earn-
revenues situation to stabilise.
ings situation of Nordzucker AG, including its subsidiaries, associated compa-
The decrease in finished goods and work
nies and joint ventures. With the excep-
in progress came in at EUR 245.8 m – a
tion of Nordzucker AG (reporting date:
much higher figure than in the previous
November 30, 2008), September 30,
year (75.8). This was almost solely due
2008, was used as the reporting date
to the higher valuation of sugar stocks
for the consolidation of all the relevant
due to the expenses caused by the re-
companies.
structuring levy for the 2007 campaign.
The accounting and valuation methods
At EUR 133.4 m, other operating in-
applied in preparing the consolidated
come clearly exceeded the previous
annual financial statements as of Febru-
year’s figure (25.9). The prime reason
ary 29, 2008, have been maintained un-
for this was the restructuring aid
changed. Further information is available
payable to Nordzucker by the European
in the notes to the 2007/2008 Annual
Union in 2009 and 2010 as a result of
Report.
the quotas surrendered in the second
917
878
9 months
2007/2008
9 months
2008/2009
Consolidated EBIT
in EUR m
74
52
wave up to March 31, 2008, in GerSugar production is a seasonal business.
many and Hungary. In total, approxi-
The production phase from mid-Septem-
mately 163,000 tonnes of quota were
ber to January falls partly in Q3 and part-
returned during this phase.
9 months
2007/2008
9 months
2008/2009
ly in Q4 of the financial year. This should
be taken into account when interpreting
The cost of materials and services came
the results for the first nine months.
in at EUR 468.1 m and included the restructuring levy payable to the European
Revenues and earnings
Union in addition to expenses for raw
In the first nine months of the 2008/
materials, consumables, supplies and
2009 financial year, the Nordzucker
purchased merchandise. The levy fell
Group’s revenues totalled EUR 877.7 m.
considerably in comparison to the first
This was some EUR 39.7 m below the
nine months of the previous year to EUR
figure for the same period of the previ-
113.30 per tonne of sugar (173.80). In
ous year (917.4). In Germany, revenues
conjunction with the drop in the mini-
Nordzucker nine-month report 2008/2009
6
Management report
mum beet price, this was largely respon-
34.3 m (39.9). Minority interests mainly
Consolidated net income
sible for the EUR 86.6 m decrease in the
comprised the Sunoko group’s external
in EUR m
cost of materials and services (554.7).
shareholders (Serbia).
However, the sharp year-on-year rise in
51
energy costs partially counteracted this
Balance sheet and cash flow
effect.
Proceeds from the sale of products, mer-
38
chandise and services amounted to EUR
Personnel expenses totalled EUR 77.5 m
940.2 million in the first nine months of
in the past three quarters and were there-
the 2008/2009 financial year, exceeding
fore well below the previous year’s figure
the previous year’s figure (868.9). This
(90.7). This included severance payments
was offset by payments to suppliers
to staff at factories closed in Hungary,
and staff of EUR 604.1 m (602.8). After
which constituted a non-recurring item.
accounting for other inpayments and
However, the high costs incurred in the
outpayments and tax refunds, cash flow
previous year for the plant closure in
from operating activities came to EUR
Güstrow meant that personnel expenses
204.8 m, which was roughly on a par
still dropped in comparison to the previ-
with the previous year’s figure (201.6).
9 months
2007/2008
9 months
2008/2009
ous Q3 figure. The one-off effect of the
plant closure in Güstrow in the previous
Payments for investment in property,
year also prompted write-downs to fall
plant and equipment amounted to EUR
sharply to EUR 54.5 m (72.3).
80.2 m (96.9) in the reporting period.
For investments in financial assets pay-
Other operating expenses decreased
ments came to EUR 21.3 m (19.2). This
from EUR 99.7 m to EUR 91.6 m. In the
led to a total cash flow of EUR 120.3 m
previous year, this item included high
from investing activities (113.9). After
restructuring costs, while other operat-
taking into account the minus EUR
ing expenses for the current financial
56.8 m cash flow from financing activi-
year included expenditure relating to
ties (-36.7), cash and cash equivalents
preparations for the integration of
totalled EUR 51.4 m as of November 30,
Danisco Sugar.
2008 (138.1).
Balance sheet structure
as of November 30, 2008
Consolidated figures in EUR m
1,682
52%
As of November 30, 2008, the
the first nine months of the 2008/2009
Nordzucker Group posted a consolidated
financial year came to EUR 73.6 m. This
balance sheet total of EUR 1,682.4 m,
represented a clear, EUR 21.7 m increase
which almost matched the previous
year on year (51.9) which was primarily
year’s figure (1,683.8). In comparison
due to the high restructuring costs in-
to the third quarter of 2007/2008, fixed
curred in the previous year.
assets declined by EUR 65.7 m to EUR
753.6 m (819.3).
43%
25%
23%
25%
The Group’s operating result (EBIT) for
1,682
Assets
32%
Liabilities
Long-term
assets
Shareholders‘
equity
Inventories
Long-term
liabilities
Other short-term
assets
Short-term
liabilities
Net interest was down, mainly due to
the interest expenses for the bioethanol
The decrease in intangible assets
activities, and totalled minus EUR 15.0 m
stemmed in turn from the write-down
(-8.8). Income tax expense amounted to
of additional quotas purchased in 2006
EUR 20.8 m (-8.1) in the reporting period.
and the impairments reported in the
previous year. The reduction in property,
This resulted in consolidated net income
plant and equipment was primarily at-
for the period of EUR 37.7 m (51.1). Af-
tributable to plant closures. Other assets
ter minority interests, the consolidated
include the entitlement to European
net income for the period came to EUR
Union restructuring aid.
Nordzucker nine-month report 2008/2009
7
Supplementary report | Outlook
Shareholders’ equity rose slightly, total-
Net debt of EUR 314.2 m was recorded
ling EUR 725.3 m compared to EUR
as of November 30, 2008 (80.1). This
698.4 m in the previous year. The equity
increase was primarily due to payment
ratio increased to 43.1 per cent (41.5)
of the restructuring levy and invest-
and therefore remains sound, with a de-
ments in the bioethanol plant operated
cline in liabilities contributing towards
by fuel 21 in Klein Wanzleben.
this rise. While long-term provisions and
liabilities grew by EUR 22.9 m, shortterm provisions and liabilities were down
some EUR 51.2 m.
Supplementary report
No events of particular significance for
sheet date for the Q3 financial state-
Nordzucker AG’s financial and earnings
ments on November 30, 2008.
position have occurred since the balance
Outlook
Revenues in the current year will come
Similarly, high start-up costs in the field
in below the previous year’s figure due
of bioethanol production and the diffi-
to the quota surrenders and the lower
cult market environment in Poland and
reference price for sugar. Higher manu-
Serbia are also likely to have a negative
facturing costs will also affect the in-
effect on the end-of-year result.
come statement.
Against the backdrop of changing marThe manufacturing costs for the stocks
ket conditions in the EU and consolida-
posted as of February 29, 2008, include
tion throughout the industry, Nordzucker
restructuring levies on a pro rata basis.
is continuing to pursue a policy based
These restructuring levies will impact on
on growth and greater profitability.
the result for the current financial year
as the stocks are sold off. High energy
costs will also be a factor.
Nordzucker nine-month report 2008/2009
8
Consolidated nine-month financial statements
Consolidated nine-month financial statements
Consolidated income statement
for the period from March 1 – November 30, 2008, Nordzucker AG, Braunschweig
1/3/200830/11/2008
in TEUR
1. Revenues
1/3/200730/11/2007
in TEUR
Change
in TEUR
877,657
917,407
-39,750
-245,798
-75,845
-169,953
53
1,593
-1,540
133,359
25,869
107,490
765,271
869,024
-103,753
468,109
554,743
-86,634
77,479
90,722
-13,243
54,540
72,271
-17,731
2. Decrease
in finished goods and work in progress
3. Own work capitalised
4. Other operating income
5. Cost of materials and services
6. Personnel expenses
7. Depreciation, amortisation
of intangible assets, property, plant and equipment
8. Appreciation
on intangible assets, property, plant and equipment
9. Other operating expenses
10. Operating result (EBIT)
11. Net interest
a) Interest income
b) Interest expenses
12. Net income/loss from investments
a) Net income/loss from associated companies “at equity”
b) Other net income/loss from investments
13. Other net financial income/expense
14. Net financial income/expense
39
307
-268
91,580
99,723
-8,143
73,602
51,872
21,730
8,592
4,066
4,526
23,608
12,818
10,790
-15,016
-8,752
-6,264
0
0
0
-201
5
-206
-201
5
-206
93
-130
223
-15,124
-8,877
-6,247
15. Income tax expense
20,790
-8,056
28,846
16. Consolidated net income
37,688
51,051
-13,363
17. Minority interests
18. Consolidated net income attributable to shareholders of the parent company
3,429
11,122
-7,693
34,259
39,929
-5,670
Nordzucker nine-month report 2008/2009
9
Consolidated nine-month financial statements
Consolidated cash flow statement
for the period from March 1 – November 30, 2008, Nordzucker AG, Braunschweig
1/3/200830/11/2008
in EUR m
Proceeds from the sale of goods, merchandise and services
1/3/200730/11/2007
in EUR m
940.2
868.9
-604.1
-602.8
5.5
4.9
Tax received (refunds)
33.6
27.6
Other inpayments
22.0
91.2
-19.3
-10.2
Payments to suppliers and employees
Interest received
Interest paid
Tax paid
Other outpayments
Cash flow from operating activities
Proceeds on disposal of long-term assets
Payments for investments in long-term assets
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 the sale of consolidated companies and other business units
Payments for the acquisition of consolidated companies and other business units
Proceeds/Payments associated with short-term treasury management
Cash flow from investing activities
Proceeds from changes in equity
Dividend payments
-72.4
-51.9
-100.7
-126.1
204.8
201.6
2.0
8.0
-80.2
-96.9
0.0
4.2
-1.1
-10.2
3.8
0.2
-21.3
-19.2
0.0
0.0
-23.6
0.0
0.1
0.0
-120.3
-113.9
0.0
0.0
-23.3
-38.5
Repayments of loans/Proceeds from borrowing
-33.5
1.8
Cash flow from financing activities
-56.8
-36.7
27.7
51.0
Changes in cash and cash equivalents
Effect of changes to foreign exchange rates, the group of consolidated companies
and valuation methods
-5.1
0.2
Cash and cash equivalents at the beginning of the period
28.8
86.9
Cash and cash equivalents at the end of the period
51.4
138.1
Nordzucker nine-month report 2008/2009
10
Consolidated nine-month financial statements
Consolidated balance sheet
as of November 30, 2008, Nordzucker AG, Braunschweig
Assets
29/2/2008
in TEUR
30/11/2008
in TEUR
30/11/2007
in TEUR
Change
in TEUR
Long-term assets
Fixed assets
Intangible assets
73,444
62,454
102,446
-39,992
663,149
642,160
684,743
-42,583
Investment property
7,093
6,720
6,113
607
Financial assets
Shares in associated companies “at equity”
3,861
3,844
1,484
2,360
Property, plant and equipment
Other financial assets
21,037
38,379
24,483
13,896
24,898
42,223
25,967
16,256
Accounts receivable and other assets
Financial assets
Other assets
Deferred taxes
730
763
799
-36
118,341
83,505
1,194
82,311
119,071
84,268
1,993
82,275
37,995
32,777
30,690
2,087
925,650
870,602
851,952
18,650
30,347
47,384
43,587
3,797
Short-term assets
Inventories
Raw materials, consumables and supplies
Work in progress
Finished goods and merchandise
31,143
44,626
30,787
13,839
570,003
301,432
403,069
-101,637
631,493
393,442
477,443
-84,001
70,222
71,037
81,786
-10,749
135,182
94,525
57,576
36,949
4,077
862
3,654
-2,792
10,534
19,240
9,032
10,208
Accounts receivable and other assets
Trade receivables from external companies
Receivables from related parties and companies
Receivables from income tax
Financial assets
Other short-term assets
Assets held for sale
Cash and cash equivalents
26,761
179,538
63,656
115,882
246,776
365,202
215,704
149,498
1,949
1,674
588
1,086
28,846
51,445
138,086
-86,641
909,064
811,763
831,821
-20,058
1,834,714
1,682,365
1,683,773
-1,408
Nordzucker nine-month report 2008/2009
11
Consolidated nine-month financial statements
Consolidated balance sheet
as of November 30, 2008, Nordzucker AG, Braunschweig
29/02/2008
in TEUR
30/11/2008
in TEUR
30/11/2007
in TEUR
Change
in TEUR
Subscribed capital
123,651
123,651
123,651
0
Capital reserves
127,035
127,035
127,035
0
Retained earnings
387,446
398,580
357,605
40,975
Accumulated other equity
28,066
17,241
25,700
-8,459
Minority interests
65,244
58,744
64,438
-5,694
731,442
725,251
698,429
26,822
100,666
101,712
100,140
1,572
Shareholders’ equity and liabilities
Shareholders' equity
Long-term provisions and liabilities
Provisions for pensions and similar obligations
Other provisions
30,904
25,953
23,882
2,071
198,293
186,917
178,503
8,414
0
0
7,691
-7,691
Other liabilities
28,851
21,450
18,035
3,415
Deferred taxes
76,395
81,916
66,775
15,141
435,109
417,948
395,026
22,922
Financial liabilities
Other financial liabilities
Short-term provisions and liabilities
Provisions for pensions and similar obligations
Other provisions
Financial liabilities
Income tax liabilities
Trade payables
Liabilities due to related parties and companies
Other financial liabilities
Other liabilities
4,878
4,878
5,019
-141
31,886
19,669
22,949
-3,280
193,856
178,680
39,725
138,955
19,389
9,921
3,157
6,764
200,234
136,074
176,433
-40,359
5,771
17,131
3,404
13,727
32,578
30,078
308,227
-278,149
179,571
142,735
31,404
111,331
668,163
539,166
590,318
-51,152
1,834,714
1,682,365
1,683,773
-1,408
Nordzucker nine-month report 2008/2009
12
Consolidated nine-month financial statements
Consolidated statement of changes in shareholders’ equity
as of November 30, 2008, Nordzucker AG, Braunschweig
Subscribed
capital
in TEUR
Capital
reserves
in TEUR
Retained
earnings
in TEUR
Accumulated
other equity
in TEUR
Minority
interests
in TEUR
Total equity
in TEUR
123,651
127,035
340,921
23,042
68,364
683,013
Currency effects
0
0
0
2,201
0
2,201
Fair value adjustment
0
0
0
457
0
457
Consolidated net income
0
0
39,929
0
11,122
51,051
Dividend payment
0
0
-23,185
0
-30,594
-53,779
Others
0
0
-60
0
15,546
15,486
As of 30/11/2007
123,651
127,035
357,605
25,700
64,438
698,429
As of 29/2/2008
123,651
127,035
387,446
28,066
65,244
731,442
Currency effects
0
0
0
-9,688
0
-9,688
Fair value adjustment
0
0
0
-1,137
0
-1,137
Consolidated net income
0
0
34,260
0
3,429
37,689
Dividend payment
0
0
-23,185
0
0
-23,185
Others
0
0
59
0
-9,929
-9,870
123,651
127,035
398,580
17,241
58,744
725,251
As of 28/2/2007
As of 30/11/2008
Shareholders‘ structure Nordzucker AG
EUR 123.7m share capital
Nordzucker Holding Aktiengesellschaft: 76.23 %, EUR 94.3m
Union-Zucker Südhannover GmbH: 10.82 %, EUR 13.4m
Nordharzer Zucker AG: 7.83 %, EUR 9.7m
Direct shareholders: 5.12 %, EUR 6.3m
Nordzucker nine-month report 2008/2009
13
Financial calendar
Annual general meetings
August 27, 2009, 09.00 am
Union Zucker Südhannover GmbH, Berghölzchen Hildesheim
September 1, 2009, 10.00 am
Nordharzer Zucker AG, VW-Halle Braunschweig
September 2, 2009, 10.00 am
Nordzucker Holding AG, VW-Halle Braunschweig
September 3, 2009, 10.00 am
Nordzucker AG, VW-Halle Braunschweig
Publications
January 30, 2009
June 25, 2009
Nine-month report 2008/2009
Annual Report 2008/2009
Online publications
The following publications can be downloaded from www.nordzucker.de
• Annual Report
• Interim Reports
• Declaration of compliance
• Sustainability Report
Nordzucker nine-month report 2008/2009
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Nordzucker AG
Küchenstrasse 9
D-38100 Braunschweig
Telephone: +49 (0)531 2411 0
Fax:
+49 (0)531 2411 100
[email protected]
www.nordzucker.de
Shares register
Wilhelm Just
Telephone: +49 (0)531 2411 160
[email protected]
Investor Relations
Bianca Deppe-Leickel
Telephone: +49 (0)531 2411 335
[email protected]
Public Relations
Tanja Schneider-Diehl
Telephone: +49 (0)531 2411 314
[email protected]
This Nordzucker interim report is published in English and German on our website at
www.nordzucker.de.