sugar has a Future

142 Pages·2014·6.82 MB·English

s u g a r
h a s a
F u t u r e
annual report 2013/2014
key Figures
nordzucKer in europe
northern europe
1,509
Average number of employees for the year
5 2
Sugar Sugar
factories refineries
central europe
1,247
Average number of employees for the year
5 2 1
eastern europe
Sugar Liquid Bio- 523
factories sugar ethanol
factories plant
Average number of employees for the year
3 1
Sugar Sugar
factories refinery
Beet cultivation anD campaign
2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
Beet farmers 16,292 16,091 15,379 14,981 14,761
Beet cultivation area ha 287,245 254,300 265,947 265,904 241,000
Beet processing t/day 143,392 133,192 143,520 138,797 143,236
Sugar production millions of tonnes 2.87 2.30 2.91 2.80 2.50
Nordzucker ANNuAl report 2013/2014
revenues
in EUR m
2,443
2,500 2,361
2,250
2,018
2,000 1,806 1,815
1,750
1,500
1,250
1,000
750
500
250
0
2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
net income
in EUR m
400
369*
350
300
250
208 209
200
150
91
100
50
0
-50 – 10
-100
2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
* adopted
DiviDenD per share
EUR
2.00 1.80
1.50 1.30
1.00
1.00
0.46
0.50
0.0
0
2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
key Figures
Nordzucker ANNuAl report 2013/2014
Nordzucker –
Key Figures at a gl ance
YielD ratio
2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
Total operating profitability 1 % 9.7 16.6 18.4 24.3 20.0
Return on revenues 2 % – 0.7 4.8 10.1 14.7 8.5
Return on equity 3 % – 1.7 10.6 20.4 27.8 14.5
Redemtion period 4 years 4.0 1.1 0.6 0.1 – 0.1
Cash flow from operating activities
per share EUR 6.78 6.49 4.59 6.49 5.90
Earnings (Group) per share 5 EUR – 0.27 1.80 4.22 7.44 4.17
Dividend per share 6 EUR – 0.46 1.00 1.80 1.30
Total dividend EUR m – 22.2 48.3 86.9 62.8
1 EBITDA/Total revenues 4 Net debt/EBITDA
2 Net income/revenues 5 Total income/number of shares
3 Net income/equity 6 Total dividend/number of shares
KeY Financial Figures
2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
Revenues EUR m 1,806 1,815 2,018 2,443 2,361
of which abroad % 54 52 54 57 56
EBITDA EUR m 166 283 420 594 473
EBIT EUR m 66 188 315 506 299
Net income EUR m – 10 91 208 369 209
Cash flow for/from operating activities EUR m 328 313 222 313 285
Investment in property, plant and equipment
and intangible assets EUR m 62 56 64 74 79
Balence sheet ratio at the enD oF the Financial Year
2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
Balence sheet total EUR m 2,456 1,982 2,262 2,403 2,337
Equity EUR m 744 819 999 1,291 1,386
Equity ratio % 30 41 44 54 59
Dept capital EUR m 1,712 1,163 1,263 1,112 951
Financial liabililties EUR m 778 364 256 71 6
Cash and cash equivalents EUR m 114 50 7 11 58
Net dept1 EUR m 664 314 249 59 – 52
1 Cash and cash equivalents – Financial liabililties
ANNuAl report 2013/2014 1
s u g a r h a s
a F u t u r e
We are shaping our future with foresight and working
with great dedication to become more efficient and to
streamline our processes. We give our all for our customers,
out of conviction.
as a powerful economic factor in our regions, we assume
responsibility for the environment and for employment.
together with our beet farmers, we aim to sustainably
strengthen the position of sugar beet. We attach great
importance to a transparent supply chain from the field to
the customer, and to the highest quality products.
as a strong european sugar company, we are looking to
the future with confidence, because sugar has a future!
2 Nordzucker ANNuAl report 2013/2014 : Sugar has a future
c o n t e n t
1
nordzucKer at a glance
Key figures
4 48
sugar has a Future group management report
5 � Letter from the executive Board 50 � nordzucker at a glance
10 � Strategy 54 � economic environment and market developments
16 � optimised beet cultivation
57 � earnings, net assets and financial position
20 � Sugar beet is the future
62 � employees
26 � Investitions
62 � opportunities and risks
30 � Production
68 � supplementary report
36 � Health and nutrition
68 � Forecast
40 � Quality management
44 � Sales
sugar has a future : Nordzucker ANNuAl report 2013/2014 3
How much
sugar is needed
when and where?
Nordzucker is thinking
in terms of the
market.
70 124
consolidated Financial Further inFormation
statements
126 � corporate Governance report
72 � consolidated income statement 127 � Statement of compliance with
72 � consolidated statement of comprehensive income german corporate governance code
73 � consolidated cash flow statement 128 � report by the Supervisory Board
74 � consolidated balance sheet 132 � Glossary
76 � consolidated statement of 137 � Financial calendar
changes in shareholders’ equity
77 � Notes to the consolidated financial statements
123 � Audit opinion
4 Nordzucker ANNuAl report 2013/2014 : executive Board
Dr Michael Noth, Dr Lars Gorissen, Hartwig Fuchs (Chief Executive Officer),
Axel Aumüller and Mats Liljestam (left to right)
letter from the executive Board : Nordzucker ANNuAl report 2013/2014 5
dear shareholders
After two excellent financial years with very good earnings, we were again able to close the
year 2013/2014 at a level that we can be very pleased with. nevertheless, over the course
of 2013 we experienced some steep price falls for quota and non-quota sugar, which are
reflected in both revenues and earnings. higher sales were able to make up for much of this
pricing effect, however.
to give you the main figures in brief: we reported revenues of eur 2,360.9 million in total,
which was eur 81.9 million lower than in the previous year. consolidated net income for the
period came to eur 208.7 million, compared with the adjusted eur 368.7 million in the
previous year.
Part of our strategy and preparation for the era without sugar quotas post-2017 are extensive
investments in our plants to boost market and customer focus, improve their efficiency and
protect the environment. in the reporting year, they included investments of eur 78.7 million
in property, plant and equipment – over eur 4 million more than in the previous year. high-
lights of this capital expenditure were the first construction phase for the evaporation dryer
in Örtofta and the second phase in Nakskov, an 80,000-tonne sugar silo in uelzen, as well as
the completion of the juice purification plant in clauen and the wastewater treatment plant
in opalenica. projects to increase energy efficiency and create additional silo capacities will
remain the focus of investment in the years ahead. We are planning to increase our investment
volume again substantially.
“
Beet farming in
our european regions
has a future.
”
the previous year’s net debt of eur 59.4 million has now been paid off in full. as of the
reporting date, cash and cash equivalents exceeded financial liabilities by eur 52.4 million.
equity went up to eur 1,385.8 million. as total assets remained roughly the same, the equity
ratio went up from 53.7 per cent in the previous year to 59.3 per cent.
6 Nordzucker ANNuAl report 2013/2014 : letter from the executive Board
Together with the Supervisory Board, we intend to put forward a proposal at the Annual General
meeting this year to distribute a dividend of eur 1.30 per share of share capital. this corresponds
to a total dividend distribution of eur 62.8 million. in the outstanding previous year, we distributed
eur 1.80 per share, adding up to a total of eur 86.9 million. In a long-term comparison, the
dividend is still high, however, and allows our shareholders to participate in the company’s strong
earnings in the financial year 2013/2014. at the same time, a considerable portion of earnings
has been retained to finance future profitable growth within the company.
“
We Want to Become one
european company and, together
With our motivated and highly
qualified team, are preparing for
the post-2017 era.
”
2013/2014 was a successful year. our wide-ranging programmes to increase efficiency are hav-
ing an effect, and this year again made a substantial contribution to earnings. We were able to
complete our profitability plus efficiency programme a year earlier than planned, because we
have already reached the target set for 2014/2015. now, with an eye on 2017, the aim is to set
new targets, as improvement is a continuous process. We can be proud of a smooth campaign,
a good beet yield – although weather conditions were not optimal everywhere – and a team
that is driving forward the company’s continued development in all areas. this annual report is
not only intended to provide you with a review of the past year, but above all to show you how
nordzucker staff in specific areas work each and every day to give their best for our customers
and our company. they take care of customer requests, ensure compliance with our high quality
standards, implement investment projects, improve workflows in our plants and work with our
beet farmers to increase their yields. they are a strong team, who have been preparing for the
new era for a long time. in particular, we want to highlight the fact that this team works together
across national borders, that its members learn from one another and make use of knowledge
from other plants. We want to become a european company and prepare ourselves for the time
when the quota system expires. It is a time that will bring challenges, but also opportunities. our
thanks go to all our staff for their dedication and their willingness to confront the new challenges.