The Sdzucker Group | Profile 2011

Contents
1.

Sdzucker Group

1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9

Overview
Corporate strategy and
guiding principles
Segment overview
Figures
Segment figures
Employees
Executive board
Supervisory board
More than 150 years of tradition

2.

Sdzucker share

2.1
2.2
2.3
2.4

Overview
Share price movement
Long-term increase in value
Shareholder structure

3.

Sugar segment

3.1
3.2
3.3
3.4
3.5
3.6

Overview
Figures
Campaign 2010
Sites
Quotas/production shares
Beet processing/sugar production

3.7
3.7.1
3.7.2
3.8
3.9
3.10
3.11
3.12
3.13

Sdzucker AG Germany
Assortment for households
Assortment for processing industries
Mauritius Sugar Syndicate
Sdzucker Polska/Moldova
Raffinerie Tirlemontoise Belgium
Saint Louis Sucre France
AGRANA Austria
AGRANA central and
eastern Europe
3.14 Division agriculture/
commodity markets
3.15 BGD, animal feed et al.

5.
5.1
5.2
5.3
5.4
5.5
5.6

CropEnergies segment
Overview
Figures
CropEnergies Bioethanol GmbH
BioWanze SA
Ryssen Alcools SAS
CT Biocarbonic

6.
6.1
6.2
6.3
6.4

Fruit segment
Overview
Figures
Fruit preparations
Fruit juice concentrates

4.

Special products segment

7.

Research and development

4.1
4.2
4.3
4.3.1
4.3.2
4.3.3
4.4
4.5
4.6

Overview
Figures
BENEO
Markets and services
Products
Benefits
Freiberger
PortionPack Europe
Starch

8.
8.1
8.2

Sustainability
Basis for success
Examplary initiatives

9.
9.1
9.2
9.3
9.4
9.5

Sugar market
German sugar market
German sugar sales
EU sugar policy
National quotas in the EU
Global production/consumption

10.

Sugar production diagram

1.1 Sdzucker Group: Overview

Global operating German food group
Segments sugar, special products, CropEnergies and fruit
17,700 employees
6.2 billion annual revenues
Sugar production: 4.2 million tonnes
Leader in the European sugar market
Member of the German MDAX

1.2 Corporate strategy and guiding principles

Our goal as a European corporation is to work in concert with our partners on responsibly
shaping the future, based on a vision of continued sustainable, profitable growth and
steadily rising shareholder value.
Sdzucker is Europe's leading supplier of sugar products and is well positioned in the
special products, CropEnergies and fruit market segments.
Our divisions set benchmarks in their target markets, always taking into account the
interests of shareholders, customers, suppliers, employees and future generations.
We want to take full advantage of growth opportunities and continuously align our
strategic programs with the prevailing general conditions.
The Sdzucker Group relies on its close cooperation with the agricultural industry, the
basis of its commodities, the group's in-house research expertise, its extensive
manufacturing knowledge in connection with processing renewable raw materials and its
marketing experience, particularly in the B2B area.
We create value that generates sustainable, rewarding corporate growth.

1.3 Sdzucker Group: Segment overview

Sugar
segment

Special products
segment

CropEnergies
segment

Fruit
segment

29 sugar factories and

3 refineries in
Austria, Belgium,
Bosnia-Herzegovina,
the Czech Republic,
France, Germany,
Hungary, Moldova,
Poland, Romania,
Slovakia

BENEO
(BENEO-Orafti,
BENEO-Remy,
BENEO-Palatinit)
Freiberger
PortionPack Europe
Starch

Bioethanol
3 production sites
in Germany,
Belgium and France

Fruit preparations
Fruit juice concentrates
37 production sites
worldwide

The art of sweet shapes.

Sugar always ensures our undivided attention. In all its imaginable forms. This approach
means that not only the experts of this art have
elevated us to European market leader. Wherever
sugar plays an important role youll find us, and
our creations, always on show. And its not just
the large sculptures that earn the appreciation

The art of
variety.
Pop art has taught us that even small,
often insignificant, things can contribute
to great art. If projected in the right way.
This is why we put a lot of loving care into

of an interested public. Often enough its the

the creation and design of our products,

very small items too.

so that they meet the many demands.

1.4 Sdzucker Group: Figures

Revenues
EBITDA
Depreciation of fixed assets
and intangible assets
Operating profit
Restructuring costs and special items
Income from operations
EBITDA margin
Operating margin
ROCE
Investments in fixed assets
Investments in financial assets
Total investments
Employees

2010/11

2009/10

million
million

6,161
772

5,718
645

million
million
million
million
%
%
%
million
million
million

-253
519
-8
511
12.5
8.4
9.8
245
6
251
17,658

-243
403
-10
392
11.3
7.0
7.5
216
17
233
17,493

1.5 Sdzucker Group: Segment figures

Revenues

2010/11

2009/10

Sugar segment

3,279

3,154

Special products segment

1,575

1,396

CropEnergies segment

437

362

Fruit segment

870

806

Group

6,161

5,718

Mio.

2010/11

2009/10

54

Sugar segment

282

217

28

Special products segment

144

138

million

53
26
7
14

Operating profit

CropEnergies segment

46

12

Fruit segment

47

36

519

403

Group

1.6 Sdzucker Group: Employees

Employees by region

Average number during the year

K
18

17.658

17,493

15

5,118

4,711

12

303

302

4,259

4,262

Segment

Fruit

Special products

23

Germany

26

None EU/
other

51

Other EU
countries

80

CropEnergies
60
40

6
7,978

8,218

3
0

%
100

2010/11

2009/10

Sugar

20
0

2010/11

1.7 Executive board of the Sdzucker AG

Dr. Wolfgang Heer
Spokesman
Sugar sales, strategic corporate
planning/group development/
investments, public relations,
organisation/IT, audit, food law/
consumer policy/quality control,
personnel and social matters,
marketing
F. l.: Johann Marihart, Thomas Klbl,
Dr. Wolfgang Heer, Prof. Dr. Markwart Kunz,
Dr. Thomas Kirchberg

Dr. Thomas Kirchberg

Agricultural policies, beet, animal feed/
by-products, farms/commodity market,
R&D agriculture
Thomas Klbl
Finance, accounting, investor relations,
compliance, financial management/
controlling, operational corporate
policy, taxation, legal issues,
property/insurance, procurement of
supplies and consumables

Professor Dr. Markwart Kunz

Production/engineering
research/development/services
procurement of capital goods/
maintenance materials and services,
functional food,
bioethanol
Dipl.-Ing. Johann Marihart
CEO of the AGRANA Beteiligungs-AG,
renewable raw materials, starch,
fruit

1.8 Supervisory board of the Sdzucker AG

Chairman:

Dr. Hans-Jrg Gebhard

2 Deputy chairmen: Dr. Christian Konrad

Franz-Josef Mllenberg
8 further shareholders' representatives
9 further employees' representatives
Sdzucker complies with the recommendations of the government
commission German corporate governance code

1.9 More than 150 years of tradition

1837 Formation of the first sugar company of the later Sdzucker
1926 First merger: Sddeutsche Zucker-AG, Mannheim
1951 Formation of Zuckerfabrik Franken GmbH
1988 Second merger: Sdzucker AG Mannheim/Ochsenfurt
1989 Investment in AGRANA Beteiligungs-AG, Vienna
1989 Investment in Raffinerie Tirlemontoise S.A., Brussels
1991 Formation of Sdzucker GmbH, Zeitz
1995 Formation of Schller Holding GmbH & Co. KG, Nuremberg
1996 Acquisition of majority interest in Freiberger, Berlin
1996 Beginning investments in sugar division in Poland
1998 Acquisition of outstanding minority interests in Freiberger
2001 Acquisition of Saint Louis Sucre S.A., Paris/Sale of Schller Holding
2003 Acquisition of 14 Silesian sugar factories
2003 Establishment of fruit preparations/fruit juice concentrates division by AGRANA

1.9 More than 150 years of tradition

2004 Start of construction of the bioethanol plant in Zeitz
2004 Worldwide expansion of fruit division
2005 Start of bioethanol production in Zeitz
2006 BENEO-Orafti factory in Chile starts production
2006 IPO for the Sdzucker subsidiary CropEnergies (bioethanol)
2006 European-wide expansion of the bioethanol division
2006 First joint venture with a leading apple juice concentrate producer in China
2007 Fruit preparations factory in Brazil starts production
2007 BENEO-Group founded: Orafti, Remy and Palatinit functional food activities merged
2008 Plant in Zeitz expands production capacity of bioethanol to 360,000 m per year
2008 Sdzucker partners with Mauritius (400,000 tonnes of sugar)

1.9 More than 150 years of tradition

2008 Bioethanol plant in Wanze, Belgium with an annual capacity of 300,000 m
starts production
2008 Bioethanol plant in Pischelsdorf, Austria with an annual capacity of 240,000 m
starts production
2009 Freiberger takes over the pizza production site in Osterweddingen
2010 Joint venture to build a food-grade CO2 production plant
2010 Start of white sugar deliveries from Mauritius
2010 New pizza factory starts up in Westhoughton, Great Britain
2010 CO2 production facility starts up in Zeitz, Germany

2.1 Sdzucker share: Overview

Dividend per share

Dividend yield
Closing price XETRA (record date)
Average trading volume/day
Market capitalisation as of period end

2010/11

2009/10

0.55 1)

0.45

2.77

2.64

19.90

17.06

million of shares

0.8

1.0

million

3,768

3,230

189,353,608

189,353,608

Number of 1 shares issued

Share performance indicators
Earnings per share

1.32

1.06

Cash flow per share

3.20

2.92

15.08

16.09

6.2

5.8

Price-earnings ratio
Price-cash flow ratio
1) proposed

2.2 Sdzucker share: Share price movement

21

19

17

14

13

Feb. March April

2010 2010 2010

May
2010

June
2010

July
2010

Aug.
2010

Sept.
2010

Oct.
2010

Nov.
2010

Dec.
2010

Jan.
2011

The current share price movement can be found here: www.suedzucker.de/en/Investor-Relations/Aktie/Aktueller-Aktienkurs/

Feb.
2011

2.3 Sdzucker share: Long-term increase of value

(assuming reinvestment of dividends* and rights)

Value in thousands
100
80
60
40
20
0

1988 1990

* excluding tax credit

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010 2011

2.4 Shareholder structure

Sugar beet growers' associations

Verband Sddeutscher Zuckerrbenanbauer

Regional associations: Baden-Wrttemberg, Bavaria, Franconia,
Hesse-Palatinate, Kassel, Wetterau, Saxonia-Thuringia

Co-operative societies' headquarters

BayWa, ZG, RWZ, DZ BANK

SZVG

Sddeutsche ZuckerrbenverwertungsGenossenschaft eG
55 %

Zucker Invest GmbH

(Austrian shareholders)
10 %

Sdzucker Aktiengesellschaft Mannheim/Ochsenfurt

Subscribed capital 189.4 million
Status at: 28 Feb. 2011

Free Float

35 %

The art of sweet shapes.

Sugar always ensures our undivided attention. In all its imaginable forms. This approach
means that not only the experts of this art have
elevated us to European market leader. Wherever
sugar plays an important role youll find us, and
our creations, always on show. And its not just
the large sculptures that earn the appreciation
of an interested public. Often enough its the
very small items too.

3.1 Sugar segment: Overview

To the sugar segment belongs:

Sugar production sites of
Sdzucker AG - Germany
Sdzucker Polska - Poland
Sdzucker Moldova - Moldova
Raffinerie Tirlemontoise - Belgium
Saint Louis Sucre - France
AGRANA - Austria, Romania,
Slovakia, the Czech Republic, Hungary

Division agriculture/commodity markets

Animal Feed
Bodengesundheitsdienst
Europe-wide: 29 sugar factories
3 refineries

3.2 Sugar segment: Figures

Revenues
EBITDA
Depreciation of fixed assets
and intangible assets
Operating profit
Restructuring costs and special items
Income from operations
EBITDA margin
Operating margin
ROCE
Investments in fixed assets
Investments in financial assets
Total investments
Employees

2010/11

2009/10

million
million

3,279
396

3,154
331

million
million
million
million
%
%
%
million
million
million

-114
282
-3
279
12.1
8.6
10.3
126
5
131
7,978

-114
217
-16
201
10.5
6.9
7.5
106
9
115
8,218

3.3 Sugar segment: Campaign 2010

Group
29 sugar factories all over Europe, 3 refineries
388,000 hectares
Cultivated area:
Beet processing:
26 million tonnes
Sugar production:
4.2 million tonnes
Germany
9 sugar factories
Sugar production: 1,484,000 tonnes
Austria
2 sugar factories
Sugar production: 457,000 tonnes
Belgium
2 sugar factories
Sugar production: 493,000 tonnes
Bosnia-Herzegovina
1 refinery
Sugar production: 58,000 tonnes
The Czech Republic
2 sugar factories
Sugar production: 135,000 tonnes

France
4 sugar factories and 1 refinery
Sugar production: 922,000 tonnes
Hungary
1 sugar factory
Sugar production: 111,000 tonnes
Moldova
2 sugar factories
Sugar production: 74,000 tonnes
Poland
5 sugar factories
Sugar production: 374,000 tonnes
Romania
1 sugar factory and 1 refinery
Sugar production: 77,000 tonnes
Slovakia
1 sugar factory
Sugar production: 61,000 tonnes

3.4 Sites of the sugar factories/refineries

Sdzucker
Raffinerie Tirlemontoise
Saint Louis Sucre
AGRANA

Poland

Germany
Warburg

Brottewitz

Wabern

Belgium

Zeitz

Strzyzw

Swidnica Strzelin

Tienen
Roye

Wanze
Eppeville

Offstein

Ochsenfurt

Offenau

Etrpagny

Rain

Plattling

Ropczyce

Czech
Republic

Opava
Hrusovany

Slovakia

Sered

Leopoldsdorf

Moldova
Drochia

Tulln

Hungary

Austria

Kaposvr

Cagny

Cerekiew

Brcko

France

BosniaHerzegovina

Marseille

Status at: May 2011

Romania

Roman

Buzau

Falesti

3.5 Sugar quotas and production shares

Group's share to the EU quota:
24.1 %
thereof: Sdzucker AG in Germany: 8.7 %
Sdzucker Polska:
2.6 %
Raffinerie Tirlemontoise:
3.6 %
Saint Louis Sucre:
4.6 %
AGRANA Zucker Austria:
2.6 %
AGRANA International:
2.0 %
Production shares of the
Sdzucker Group

Belgium
72 %

France
20 %

Poland
25 %

Germany
40 %

Czech Republic
25 %
Slovakia
39 %
Austria
Hungary
100 %
100 %

Status at: May 2011

Moldova
75 %
Romania
36 %

3.6 Beet processing/sugar production*

Beet processing
Sugar production

Million tonnes
35
30

28.4

26.2

25.0

25
20
15
10

4.8

4.2

5
2010/11

* Group, incl. raw sugar refinery

2009/10

4.2

2008/09

3.7 Sdzucker AG Germany

Sugar factories:

Cultivated area:

137,000 hectares

Beet harvest:

9.58 million tonnes

Number of employees:
campaign length:

about 2,200
97 days

Processing capacity*: about 100,000 tonnes

Sugar production: 1.48 million tonnes

* all production sites per day.

3.7.1 Sdzucker: Assortment for households

Extra white sugar
(fine granulate)

Extra white sugar

Sugar cubes
Fancy shapes

(finest granulate)

Jam sugar 1plus1

Icing sugar

Jam sugar 2plus1

Icing sugar (mill)

Jam sugar 3plus1

Nibs sugar

Fix & Fruchtig

instant jam sugar

Brown sugar
Organic sugar

Jam dream

(beet sugar)

Preserving sugar

Organic raw cane sugar

Sugarloaf

Fair trade raw cane sugar

Rock candy

Fair trade raw cane sugar

cubes

Tea sugar
Fructose

Arometti fine sugar

aromatized with amaretto,
vanilla, caramel or hazelnut
Sugar sticks
Sugar in a can
Geschmacks Zauber
Vanillin sugar

3.7.1 Picture: Assortment for households

3.7.2 Sdzucker: Assortment for processing industries

Crystal
Crystal sugar
Extra white sugar
Icing sugar
Brown sugar
Farin sugar
Soft brown sugar
Raw cane sugar
Organic beet sugar
Organic cane sugar

Liquid
Liquid sugar
Invert sugar syrup
Organic invert sugar syrup
Mixed syrups
Fructose syrup
Burnt sugar syrup

9.2 German sugar sales

Specialities
Fondant
Organic fondant
Glazes
Nibs sugar
Compri sugar
Bee feed

3.8 Mauritius Sugar Syndicate

The Mauritius Sugar Syndicate is the sole sales
and marketing organization of Mauritian sugar
producers.
Sdzucker has signed an exclusive partnership
agreement with the Mauritius Sugar Syndicate
to market up to 400,000 tonnes of high-quality
white sugar per annum in the EU.
Sdzucker has established a delivery and
distribution infrastructure to deliver up to
15,000 containers per annum to end purchasers
in the EU.
Deliveries started in 2010.

400,000 tonnes sugar

3.9 Sdzucker Polska/Sdzucker Moldova

Poland
Sugar factories:
5
Cultivated area:
44,100 hectares
Beet harvest:
2.50 million tonnes
Sugar production:
373,700 tonnes
Number of employees:
about 710
campaign length:
108 days
Processing capacity*:
21,800 tonnes

Moldova
Sugar factories:
2
Cultivated area:
17,100 hectares
Beet harvest:
0.56 million tonnes
Sugar production:
74,300 tonnes
Number of employees:
about 620
campaign length:
81 days
Processing capacity*:
5,700 tonnes
* all production sites per day.

3.10 Raffinerie Tirlemontoise Belgium

Raffinerie Tirlemontoise in Belgium affiliates since 1989 to the Sdzucker Group.
Sugar factories:

Cultivated area:

42,800 hectares

Beet harvest:
Sugar production:

3.1 million tonnes

Employees sugar division:

campaign length:
Processing capacity*:

about 840
118 days
27,500 tonnes

492,500 tonnes
* all production sites per day.

3.11 Saint Louis Sucre France

Saint Louis Sucre in France affiliates since 2001 to the Sdzucker Group.
Sugar factories:

Cultivated area:

4 sugar beet plants

Beet harvest:

4 packaging plants

Sugar production*:

1 cane sugar refinery

Employees:

participation in 1 other
sugar factory

campaign length:
Production capacity**:

61,200 hectares
5.0 million tonnes
921,700 tonnes
about 1,200
106 days
50,000 tonnes

* including raffination. ** all production sites per day.

3.12 AGRANA Austria

AGRANA Zucker GmbH is the management company of the Austrian sugar division and
also serves as a holding company for the subsidiaries in Bosnia-Herzegowina, Bulgaria,
the Czech Republic, Hungary, Romania and Slovakia.
Sugar factories:

Cultivated area:

44,900 hectares

Beet harvest:

3.1 million tonnes

Sugar production:

457,000 tonnes

campaign length:

119 days

Employees sugar division:

Production capacity*:

about 540
25,000 tonnes

* all production sites per day.

3.13 AGRANA central and eastern Europe

Sugar factories: 1 in Romania, 1 in Slovakia, 2 in the Czech Republic, 1 in Hungary
Refineries: 1 in Bosnia-Herzegovina, 1 in Romania
Beet harvest:
Bosnia-H.:
Romania:
Slovakia:
Czech Republic:
Hungary:

(only refining)
290,000 tonnes
467,000 tonnes
693,400 tonnes
843,800 tonnes

Sugar production:
Bosnia-H.:
58,000 tonnes
Romania:
77,000 tonnes
Slovakia:
61,500 tonnes
Czech Republic: 134,700 tonnes
Hungary:
110,500 tonnes
* including raffination.

3.14 Division agriculture/commodity markets

7 facilities with a cultivated area of 10,400 hectares in Southern and Eastern Germany
Satisfying the new demands concerning the cultivation of plants (e.g. organic beets) by
carrying out tests and further developing cultivation methods, production engineering,
soil cultivation, etc.
Creating agricultural holdings in Moldavia, Chile and Poland (securing raw material
supply, cultivation by way of example, knowledge transfer)
Analysis of commodity markets and development of concepts to secure the raw material
supply for our processing facilities (e.g. sugar factories, bioethanol plants)

3.15 BGD, animal feed et al.

BGD Bodengesundheitsdienst GmbH
Soil testing
Fertilisation advice
Comparison of plant nutrients
Virus analyses
Animal feed
Marketing of by-products of sugar and bioethanol production
Agrar und Umwelt AG Loberaue Zschortau, organic division
Zschortauer Agrar GmbH: organic farming on 1,000 hectares
Zschortauer Futtermittel GmbH: organic mixed feed production
Wolteritzer Agrar GmbH: bio-turkey production
The closed, strictly controlled production process results
in the highest product safety and quality

The art of
variety.
Pop art has taught us that even small,
often insignificant, things can contribute
to great art. If projected in the right way.
This is why we put a lot of loving care into
the creation and design of our products,
so that they meet the many demands.

4.1 Special products segment: Overview

4.3
4.5

Functional ingredients for food, pharmaceuticals,

non-food applications and feed

Portion pack articles

8 locations in Europe

5 production locations worldwide

4.6
4.4

Deep-frozen and chilled pizza, as well as

deep-frozen pasta dishes and snacks
5 production locations in Europe

Starch and special starch products for use

in food and non-food areas as well as
bioethanol
3 production locations in Austria;
1 production location in Hungary and
1 in Romania

4.2 Special products segment: Figures

Revenues
EBITDA
Depreciation of fixed assets
and intangible assets
Operating profit
Restructuring costs and special items
Income from operations
EBITDA margin
Operating margin
ROCE
Investments in fixed assets
Investments in financial assets
Total investments
Employees

2010/11

2009/10

million
million

1,575
218

1,396
209

million
million
million
million
%
%
%
million
million
million

-74
144
-6
138
13.8
9.1
10.8
67
1
68
4,259

-71
138
12
150
14.9
9.8
10.5
50
8
58
4,262

4.3 BENEO Connecting nutrition & health

BENEO produces and markets functional ingredients with nutritional and technical
benefits uniting the business of BENEO-Orafti, BENEO-Palatinit and BENEO-Remy.
Market segments: food, pharmaceutical, non-food industries and feed
Through a unique chain of expertise, BENEO actively supports industry partners in the
development of more balanced, healthy and tasty food products.
Strong market position by coordinated sales teams in more than 70 countries
5 production sites in Belgium, Chile, Germany and Italy
About 900 Employees

4.3.1 BENEO: Markets and services

Worldwide service to customers in technical applications, product development, market and
consumer insight with subsidiaries in the USA, Asia, Russia and South-America, with a focussed
approach for:
Babyfood
Bakery and cereals
Beverages
Confectionery
Dairy
The BENEO-Institute focuses on topics that are important to food and beverage manufacturers:
Weight management
Digestive health
Bone health
Physical and mental performance
Dental care
Low glycemic concepts
BENEO actively supports industry partners with nutritionally enhanced and regulatory consulting
in the development and marketing of food and beverages.

4.3.2 BENEO: Products

Orafti inulin and oligofructose: natural prebiotic fibres from chicory
Isomalt and Palatinose (isomaltulose): Functional carbohydrates from sugar beet
Natural and organic ingredients from rice: rice proteins, flours, starches,
stabilized rice bran (RemyLiVe) and rice concentrates (Nutriz)
World market leader for inulin, oligofructose, Isomalt and Palatinose (isomaltulose)

4.3.3 BENEO: Benefits

BENEO is the ideal partner to help improve the health and nutritional value as well as taste and texture
of a product, namely:
Technical advantages
Sugar replacement
Fat replacement
Delicate textures (crispy, crunchy, creamy)
Improved mouthfeel and flavor release
Color optimization
Optimized viscosity
Optimized stability towards heat, acid and enzyme
Optimized sweetness
Improved shelf-life
Clean label (substitution of artificial additives)

Nutritional benefits
Sugar, fat and calorie reduction
Prebiotic and fibre claims
Improved calcium absorption
Prolonged energy
Kind to teeth
Lactose- and gluten-free
Balanced blood glucose and
low glycemic index
Hypo-allergenic
Organic

4.4 Freiberger
European market leader for frozen and chilled pizza
Market share frozen pizza: 17.5 %
Market share chilled pizza: 12.3 %
Products:
Frozen and chilled pizza as well as
deep frozen pasta dishes and snacks
Production locations: Berlin, Muggensturm,
Osterweddingen, Oberhofen/Austria, Westhoughton/Great Britain
With 15 production lines a daily output of up to 2.5 million boxes
Own-brand products for most of the leading food retailers world wide
Brands: Alberto, Erno's, Gourmet Royal, al Forno, Stateside, Die Dnne

4.5 PortionPack Europe

Design, production and sales of portion packed products
Product range:
Food (sugar portions, toppings, pastries,
snacks, sweets, etc.)
Non-food (shower gel, shampoo,
refreshing towels, etc.)
European market leader
Major markets:
Out-of-home-market (hotels, catering,
restaurants and canteens)
Industry
Retail market
Advertising and promotion market
8 affiliates in 8 European countries: Austria, Belgium, Czech Republic, Germany, Great Britain,
Netherlands, Poland and Spain, all specialised in producing and selling portion packs

4.6 Starch
4 starch factories in Austria, Hungary and Romania
Raw materials: Potatoes and maize
Starch and special starch products for the
Food and beverage industries
Paper and paper converting industries
Textile industry
Construction chemicals industry
Pharmaceutical and cosmetic industries
Leading supplier for business to business solutions in the bio-sector
Focus on specialities and niche markets with customer-tailored solutions
as well as advice on applications and support for developing processing machines
Provider of products from special maize e.g. wax maize and gmo-free maize
Important supplier of environmentally friendly bioethanol with one production site each in
Austria and Hungary
Additionally production of isoglucose in Hungary

5.1 CropEnergies segment: Overview

The CropEnergies Group is one of the
leading European producers of bioethanol
for the fuel sector
The CropEnergies Group includes:
CropEnergies Bioethanol GmbH, Zeitz
BioWanze SA, Brussels
Ryssen Alcools SAS, Loon-Plage
Joint venture CT Biocarbonic, Zeitz
Bioethanol production 2010/11:
687,000 m

Bioethanol sales 2010/11: 705,000 m

including 74,000 m trading goods
3 production sites in Germany,
Belgium and France with an
annual production capacity of more
than 700,000 m bioethanol

5.2 CropEnergies segment: Figures

Revenues
EBITDA
Depreciation of fixed assets
and intangible assets
Operating profit
Restructuring costs and special items
Income from operations
EBITDA margin
Operating margin
ROCE
Investments in fixed assets
Investments in financial assets
Total investments
Employees

2010/11

2009/10

million
million

437
76

362
33

million
million
million
million
%
%
%
million
million
million

-30
46
1
47
17.4
10.5
8.7
21
0
21
303

-21
12
-2
10
9.2
3.3
2.3
34
0
34
302

5.3 CropEnergies Bioethanol GmbH

One of Europes biggest bioethanol plants with an annual capacity
of 360,000 m bioethanol for the fuel sector and 260,000 t ProtiGrain
(protein animal feed) in Zeitz, Saxony-Anhalt
Quality fuel from CropEnergies: CropPower85 (about 85 %
bioethanol, about 15 % petrol) for flexible fuel vehicles
already available at numerous filling stations
By-product ProtiGrain: high protein animal feed
distributed all over Europe
Flexibility in processing raw materials
(cereals and sugar syrup)
CO2 generated when fermenting raw materials
is sent to the CO2 liquefication plant

5.4 BioWanze SA
Since December 2008 BioWanze operates a plant in Wanze/Belgium
producing bioethanol, ProtiWanze (protein animal feed) and gluten
Innovative production process:
Through the use of biomass as primary energy source
instead of fossil fuel 70 % CO2 will be saved
Raw materials: wheat and sugar syrup
Annual capacity:
Up to 300,000 m bioethanol
more than 200,000 tonnes ProtiWanze
About 55,000 tonnes gluten

5.5 Ryssen Alcools SAS

Production site in Loon-Plage, France
Part of the CropEnergies Group since June 2008
Annual Capacity:
Dehydration of 100,000 m bioethanol for fuel
applications
Rectification of 80,000 m bioethanol for
traditional and technical applications
Ryssen Alcools SAS specializes in flexible customer
fulfilment in view of product specifications and
delivery quantity.
Customers: fuel industry, beverage, cosmetic,
pharmaceutical and chemical industries

5.6 CT Biocarbonic
Joint venture to liquefy the CO2 generated at the bioethanol facility
Partner: Tyczka Energie GmbH
Largest biogenic CO2 liquefication plant in Germany
CO2 marketed for use in the beverage industry, in the
food industry as a cooling and freezing agent and to
produce dry ice used for cleaning
Production capacity: 100,000 tonnes of liquefied
CO2/annum
Cost: over 10 million
Startup: end of 2010
Shares the existing bioethanol plant's infrastructure,
such as water/wastewater, energy, CO2

6.1 Fruit segment: Overview

Segment with a global reach and
37 production facilities
Global market leader in fruit preparations
Leading producer of fruit juice concentrates
in Europe
Refining agricultural raw materials to
high-value intermediate products for the
food industry, above all for the drinks, dairy,
pastries and icecream industry
Market presence on all five continents

6.2 Fruit segment: Figures

Revenues
EBITDA
Depreciation of fixed assets
and intangible assets
Operating profit
Restructuring costs and special items
Income from operations
EBITDA margin
Operating margin
ROCE
Investments in fixed assets
Investments in financial assets
Total investments
Employees

2010/11

2009/10

million
million

870
82

806
72

million
million
million
million
%
%
%
million
million
million

-35
47
0
47
9.4
5.4
6.7
31
0
31
5.118

-36
36
-4
32
8.9
4.4
5.5
26
0
26
4.711

6.3 Fruit preparations

Global market leader in fruit preparations
26 production sites in Austria, Germany, France, Belgium, Poland, Ukraine, Serbia, Turkey,
Russia; Egypt, Argentina, Brazil, Australia, Fiji, South Korea, Morocco,
Mexico, South Africa, China and the USA
Bundling all business activities into
AGRANA Fruit S.A.S., Mitry-Mory, France
Production plants next door to industrial customers
to ensure freshness and high quality
Center of innovation and product development at Gleisdorf, Austria
R&D works closely with customers when designing and
producing fruit preparations (especially international
corporations in the dairy, ice cream and baked goods industries)

6.4 Fruit juice concentrates

One of the leading producers of fruit juice concentrates in Europe
Production and marketing of high-value apple juice and berry juice concentrates, direct
juices and purees
11 production locations (Austria, China, Denmark, Hungary, Poland, Romania, Ukraine)
and one storage in Germany
Bundling all business activities into AGRANA Juice Holding GmbH,
headquartered in Gleisdorf, Austria

7. Research and development

Main focus:
Development of new products and
product variants
Application technology in the food and
non-food areas
Optimization of the production processes
Testing new process technologies
Support for sales and production
activities

Assignments:
Sugar technology and sugar specialities,
functional food (Isomalt, PalatinoseTM, rice
derivatives, inulin and oligofructose),
pharmaceutical additives, starch and
starch derivatives, proteins, fruit
preparations, bioethanol
Expenditure for R&D in 2010/11:
35 million
10 new patents filed
About 431 employees worldwide

8.1 Sustainability: Basis for success

In the long run, sustainability is for the Sdzucker Group the only promising way of
operating economically.
Integrated consideration of economic, ecological and social questions from raw
material to consumer is the basis for our corporate decision-making and acting.
Implementation for day-to-day work through a comprehensive management system,
which integrates environmental protection, product safety, occupational safety and
health management.

8.2 Sustainability: Examplary initiatives I

Environmentally-friendly methods in the field such as:
reducing erosion by planting catch crops, mulch seeding, using soil conserving
agricultural machinery
optimizing fertilization as per EUF tests
reducing soil adherence by properly maintaining beet storage piles, pre-cleaning in the field
reducing pesticide use; e.g. by selecting pest-resistant varieties

8.2 Sustainability: Examplary initiatives II

Resource-conserving business practices e.g.:
using energy frugally and efficiently by employing modern processes (e.g., co-generation)
using any by-products generated e.g. as animal feed fertilizer
avoiding waste e.g. by using less packaging material and shipping in bulk

8.2 Sustainability: Examplary initiatives III

Eliminating/reducing environmental pollution e.g.:
logistics planning for raw material deliveries and product shipments
taking steps to reduce noise
optimizing water usage in production facilities
Development of new sustainable production methods and products e.g.:
bioethanol

9.1 German sugar market

Number of sugar factories

Number of beet growers

2010/11

2009/10

20

20

32,500

33,300

344,800

364,200

Area under beet cultivation

hectares

Sugar production

million tonnes

3.44

4.21

Domestic sugar sales

million tonnes

3.13*

3.12**
Source: WVZ
* 2009/10 ** 2008/09

9.2 German sugar sales

Households 14.0 %

31.4 % Other

2008/09

18.7 % Candies

Processing sugar 86.0 %

(total)

Bakeries

1.8 %

Milk products, Ice cream

4.5 %

Jam, preserved fruit

4.4 %

Biscuits

7.1 %

Beverages 18.1 %

Source: WVZ

9.3 EU sugar policy

Aim: to secure a competitive sugar beet industry in the EU
Long-term planning security till September 2015
Reform 2006/07 till 2009/10 including price reductions
Minimum sugar price down by 36 % (reference price), no compensation
Minimum beet price down by 39 %, compensation for 60 % of the price reduction
Production of industrial sugar in addition to quotas
Reduction of EU sugar production by 5.8 million tonnes, with a substantial halt to EU
sugar exports
Restructuring fund as an incentive to surrender sugar quotas from 2006 to 2009, funded
by levies on the sugar industry
No more intervention from 2011
External protection remains, limiting the rise in imports from AKP-countries and LDCs by
protective clauses

9.4 National quotas in the EU*

0,1 %
0,6 %
0,7 %
0,8 %
0,8 %
0,8 %
1,2 %
2,2 %

Portugal ***
Finland
Lithuania
Hungary
Slovakia
Romania
Greece
Sweden

** France 25,8 %

Germany 21,7 %

2,6 % Austria
2,8 % Denmark

Poland 10,5 %
2,8 % Czech Republic
3,7 % Spain

Great Britain 7,9 %

3,8 % Italy
5,1 % Belgium
* Sugar, from sugar marketing year 2009/10 ** incl. oversea departments *** incl. Azores

Netherlands 6,0 %
Source: WVZ

9.5 Global sugar production and consumption

million tonnes
166.9
200

150

164.1

158.6

Beet sugar
19.6 %

161.1

151.9

Beet sugar
22.2 %

159.3

Sugar production
Sugar consumption
Stocks

Beet sugar
21.4 %

100

50

Cane sugar
80.4 %

2010/11

57.8

Cane sugar
77.8 %

2009/10

56.5

Cane sugar
78.6 %

2008/09

62.3

10. Sugar production diagram

Beet slices
Water/condensate
Juice
Steam
Massecuite
Sugar

CO2

Slicer

Lime milk
Filter thickener

Cosette
mixer

Beet storage

Liming
Washing
Unloading
Completely purified
excess water

Beet soil

Biological waste
water treatment

Carbonation

Filtering

Extraction tower

Lime kiln

Molasses
Pulp press

Pellets Carbonation
lime

1. Juice production

Drying drum

2. Juice purification
Condenser

Evaporation
crystallizer

Thick juice filter

Turbo-generator

Minglers
Centrifuges

Biological water
treatment

Steamboiler
Cooling and
drying drums

Multistage evaporation station

3. Juice evaporation

White sugar

Silo

Molasses
Refined sugar

Inspection, bagging, packaging, loading

4. Crystallisation