interrim report q2 2011/12
DESCRIPTION
Interrim report Q2 2011/12TRANSCRIPT
First Half-Year
March 1 – August 31, 2011
Nordzucker AG Interim Report-Financial Year 2011/2012
Nordzucker Half-Year Report 2011/2012 Group figures and ratios | 2
Group figures and ratios first half-year 2011/2012
H12011/2012
H12010/2011
Change
absolute
Northern EuropeSugar factories 5 5 –
Sugar refineries 2 2 –
Central EuropeSugar factories 5 5 –
Liquid sugar factories 2 2 –
Bioethanol plants 1 1 –
Eastern EuropeSugar factories 3 3 –
Sugar refineries 1 1 –
Balance sheet total EUR m 1,689 1,907 -218
Equity EUR m 855 739 116
Equity ratio % 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 EUR m 148 251 -103(Cash and cash equivalents less financial liabilities)
H12011/2012
H12010/2011
Change
absolute
H12011/2012
H12010/2011
Change
absolute
Operating business
Balance sheet as of August 31
Structure figures
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
Nordzucker Half-Year Report 2011/2012 Facts and trends | 3
Nordzucker facts and trends
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.
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
Contents
Nordzucker Half-Year Report 2011/2012 The Management Team | 4
Starkes Team an der Spitze:
Axel Aumüller (born in 1957)
� Chief OperatingOfficerat Nordzucker AG
Hartwig Fuchs (born in 1959)
� Chief ExecutiveOfficerat Nordzucker AG
Mats Liljestam (born in 1959)
� Chief Marketingand Sales Officerat Nordzucker AG
Dr Michael Noth (born in 1962)
� Chief FinancialOfficerat Nordzucker AG
Dr Niels Pörksen (born in 1963)
� Chief AgriculturalOfficerat Nordzucker AG
A strong team at the top:
Nordzucker Half-Year Report 2011/2012 Letter from the Management Board | 5
We finished the first half of the 2011/2012 financial year with a significant increase in earnings com-
pared 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 elimi-
nated 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
Dear Shareholders,
Axel Aumüller Mats Liljestam
Dr Niels PörksenDr Michael Noth
Hartwig Fuchs
Nordzucker Half-Year Report 2011/2012 Sites in Europe | 6
Northern Europe
6
9 10
11
13
14
2223
16
12
8
19
20
1
3
2
4724
1521
175
18 Eastern Europe
Central Europe
Headquarters Nordzucker
D 1 Braunschweig
Head Office
A 2 Nordzucker Eastern
Europe GmbH, Vienna
DK 3 Nordic Sugar,
Køpenhavn
Sugar factories
D 4 Clauen
5 Nordstemmen
6 Uelzen
7 Klein Wanzleben
8 Schladen
DK 9 Nakskov
10 Nykøbing
S 11 Örtofta
FIN 12 Säkylä
LT 13 Kèdainiai
PL 14 Opalenica
15 Chełmża
SK 16 Trenčianska Teplá
D 17 Liquid sugar factory
Groß Munzel
18 Liquid sugar factory
Nordstemmen
Refineries
S 19 Arlöv
FIN 20 Porkkala
PL 21 Chełmża
Sugar factories –
non-consolidated
minority stake
CZ 22 Dobrovice
23 České Meziříčí
Other locations
D 24 fuel 21,
Klein Wanzleben
Sites in Europe
Nordzucker Half-Year Report 2011/2012 Management report | 7
The half-year financial report of the Nordzucker Group as of 31
August 2011 has been prepared in accordance with the Internation-
al Financial Reporting Standards (IFRS) adopted and published by
the International Accounting Standards Board (IASB). Supplemen-
tary 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
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
2010/2011 Annual Report.
The production of sugar is a seasonal business. The production
stage, from the beginning of September until the middle of Janu-
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
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 earningsIn 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 com-
pensated 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, com-
pared 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.
Earnings, net assets and financial position
H1 2010/11 H1 2011/12
Consolidated EBITin EUR m
112
83
H1 2010/11 H1 2011/12
Consolidated revenuesin EUR m
900914
Nordzucker Half-Year Report 2011/2012 Management report | 8
The operating result (EBIT) of the Nordzucker Group totalled EUR
112.0 million in the first half of the 2011/2012 financial year, com-
pared 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
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
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-
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 sheetThe cash flow from operating activities totalled EUR 291.5 million
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,
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
as a result of the payment of the final instalment for the purchase
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
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
from the optimisation of the investment portfolio and the repay-
ment of the financial liabilities entered into for the purchase of
Nordic Sugar.
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).
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.
H1 2010/11 H1 2011/12
Consolidated net incomein EUR m
73
34
Consolidated balance sheetstructure as of August 31, 2011 in EUR m
Non-currentassets
Inventories
Other currentassets
Equity
Non-currentliabilities
Currentliabilities
Assets Equity &
liabilities
65%
18%
17%
1,689 1,689
51%
18%
31%
H1 2010/11 H1 2011/12
Consolidated net debt In EUR m
148
251
Nordzucker Half-Year Report 2011/2012 Management report | 9
Supplementary report
OutlookThe 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.
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.
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.
Nordzucker Half-Year Report 2011/2012 Consolidated half-year financial statements | 10
Consolidated half-year financial statements
Consolidated income statementfor the period from March 1 to August 31, 2010,Nordzucker AG, Braunschweig
ChangeTEUR
1/3/2010- 31/8/2010
TEUR
1/3/2011- 31/8/2011
TEUR
Statement of comprehensive income
Consolidated net income 72,609 33,795 38,814
Currency conversion for foreign operations -12,925 13,218 -26,143
Net result of cash flow hedges -1,976 -1,611 -365
Income taxes 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
Attributable to minority shareholders 2,234 1,997 237
Attributable to shareholders of the parent company 56,138 43,857 12,281
Revenues 900,316 913,967 -13,651
Decrease in finished goods and work in progress 317,614 448,977 -131,363
Own work capitalised 1,406 1,865 -459
Total revenues 584,108 466,855 117,253
Other operating income 10,576 14,450 -3,874
Cost of materials and services 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
Appreciationof intangible assets and property, plant and equipment 0 319 -319
Other operating expenses 80,301 100,735 -20,434
Operating result (EBIT) 112,048 83,133 28,915
Net interest
a) Interest income and similar income 1,217 543 674
b) Interest expenses and similar expenses 25,496 26,877 -1,381
-24,279 -26,334 2,055Net income/loss from investments
a) Net income/loss from associated companies and joint venturesaccounted for under the equity method 0 0 0
b) Other net income from investments 3,779 1,684 2,095
3,779 1,684 2,095
Other net financial income/loss
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
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 0 247 -247
Consolidated net income 72,609 33,795 38,814
Consolidated net income attributable to minority interests 2,234 2,002 232
Consolidated net income attributable to shareholders of the parent company 70,375 31,793 38.582
Nordzucker Half-Year Report 2011/2012 Consolidated half-year financial statements | 11
Consolidated cash flow statementfor 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
TEURChange
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
Depreciation, appreciation on financial investments 0 0 0
Changes in non-current provisions 12,202 -7,163 19,365
Other non-cash expenses -2 -2 0
Net loss/income from associated companies 0 0 0
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
Proceeds on disposal of non-current assets -543 827 -1,370
Changes in inventories, trade receivables and other assetsnot attributable to investing or financing activities -33,160 -53,255 20,095
Changes in trade payables and other liabilitiesnot attributable to investing or financing activities -126,075 -116,601 -9,474
Interest received in the financial year 1,217 543 674
Interest paid in the financial year -9,566 -24,092 14,526
Taxes paid in the financial year -11,439 867 -12,306
Cash flow from operating activities 291,493 398,175 -106,682
Proceeds on disposal of property, plant and equipment 3,290 2,777 513
Payments for investments in property, plant and equipment -29,457 -30,183 726
Proceeds on disposal of intangible assetss 0 3,889 -3,889
Payments for investments in intangible assets -2,327 -5,952 3,625
Proceeds on disposal of financial assets 4 4,590 -4,586
Payments for investments in financial assets -3 -230 227
Proceeds from the saleof consolidated companies and other business unit 834 40,000 -39,166
Payments for the acquisitionof consolidated companies and other business units -73,637 0 -73,637
Cash flow for investing activities -101,296 14,891 -116,187
Payments to shareholders (dividends) -22,879 -1,342 -21,537
Proceeds from borrowing 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 companiesand other business units 0 0 0
Additions through mergers/other changes -497 -184 -313
Cash and cash equivalents at the end of the period 73,626 180,271 -106,645
Nordzucker Half-Year Report 2011/2012 Consolidated half-year financial statements | 12
Consolidated balance sheetas of August 31, 2011, Nordzucker AG, Braunschweig
31/8/2011TEUR
31/8/2010TEUR
28/2/2011TEUR
Assets
Non-current assets
Fixed assets
Intangible assets 179,897 174,910 184,177
Property, plant and equipment 906,056 887,017 914,247
Investment property 8,516 8,022 8,713
Financial investmentsShares in associated companies and joint venturesaccounted for under the equity method 3,838 3,838 8,409
Other financial investments 20,477 20,474 18,088
24,315 24,312 26,497
1,118,784 1,094,261 1,133,634
Receivables and other assets
Financial assets 32 0 628
Other assets 1,530 1,442 1,676
1,562 1,442 2,304
Deferred taxes 5,383 4,283 8,448
1,125,729 1,099,986 1,144,386
Current assets
Inventories
Raw materials, consumables and supplies 40,836 60,864 48,241
Work in progress 17,981 82,588 75,859
Finished goods and merchandise 533,205 141,927 139,811
592,022 285,379 263,911
Receivables and other assets
Trade receivables from external companies 155,897 182,868 187,689
Receivables from related parties 28 32 284
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
Cash and cash equivalents 50,289 73,627 180,271
855,066 588,498 692,745
Assets held for sale 826 27 69,892
855,892 588,525 762,637
1,981,621 1,688,511 1,907,023
Nordzucker Half-Year Report 2011/2012 Consolidated half-year financial statements | 13
Shareholders‘ equity and liabilities 31/8/2011TEUR
31/8/2010TEUR
28/2/2011TEUR
Consolidated balance sheetas of August 31, 2011, Nordzucker AG, Braunschweig
Shareholders‘ equity
Subscribed capital 123,651 123,651 123,651
Capital reserves 127,035 127,035 127,035
Retained earnings 471,569 520,077 416,583
Other comprehensive income 54,983 40,747 31,586
Equity attributable to shareholders of the parent company 777,238 811,510 698,855
Minority interests 41,497 43,066 39,903
818,735 854,576 738,758
Non-current provisions and liabilities
Provisions for pensions and similar obligations 134,117 133,036 131,509
Other provisions 19,218 30,723 33,819
Financial liabilities 275,892 188,959 407,664
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
Trade payables 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
Liabilities from discontinued operations 0 0 23,493
1,981,621 1,688,511 1,907,023
Nordzucker Half-Year Report 2011/2012 Consolidated half-year financial statements | 14
Shareholders‘ structure Nordzucker AGEUR 123.7m share capital
Nordharzer Zucker AG
7.8 %, EUR 9.7m
Union-Zucker Südhannover GmbH 10.8 %, EUR 13.4m
Direktaktionäre 5.2 %, EUR 6.3m
Nordzucker Holding Aktiengesellschaft 76.2 %, EUR 94.3m
Consolidated statement of changes in shareholders’ equityfor the consolidated quarterly financial statements as of August 31, 2011, Nordzucker AG, Braunschweig
Equityattributable to
Other shareholdersSubscribed Capital Retained comprehensive of the parent Minority
capital reserves earnings income company interests Total equityTEUR TEUR TEUR TEUR TEUR TEUR TEUR
As of 01/3/2010 123,651 127,035 384,294 19,521 654,501 89,498 743,999
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
Total earningsrecognised directlyin equity 0 0 31,793 12,064 43,857 1,997 45,854
Dividend payment 0 0 0 0 0 -1,346 -1,346
Others 0 0 496 1 497 -50,246 -49,749
As of 31/8/2010 123,651 127,035 416,583 31,586 698,855 39,903 738,758
As of 01/3/2011 123,651 127,035 471,569 54,983 777,238 41,497 818,735
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 earningsrecognised directlyin 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
As of 31/8/2011 123,651 127,035 520,077 40,747 811,510 43,066 854,576
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
Küchenstraße 9
38100 Braunschweig
Germany
Telephone: +49 (0)531 2411 0
Fax: +49 (0)531 2411 100
www.nordzucker.de
Corporate Communications
Klaus Schumacher
Telephone: +49 (0)531 2411 366
Investor Relations
Bianca Deppe-Leickel
Telephone: +49 (0)531 2411 335
Shares register
Claus-Friso Gellermann
Telephone: +49 (0)531 2411 118
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.