Südzucker (SZU) German Corporate Conference presentation summary

Group overview and market environment

• Diversified global food group with 100 production facilities and ~19,200 employees; strong market positions in sugar, bioethanol, starch, fruit, and special products.

• 2023/24 revenues reached €10.3bn, with 60% from non-sugar activities; SDAX-listed and committed to investment grade rating.

• Revenues are geographically diversified: 46% EU (ex-Germany), 30% Germany, 24% rest of world.

• Market volatility and cyclicality have increased, with significant price swings in sugar and ethanol.

• Global and regional challenges include supply chain disruptions, energy market volatility, and regulatory changes.

Financial performance and capital structure

• 9M 2024/25 revenues declined 4% to €7.5bn; EBITDA fell 55% to €502mn; operating result dropped 73% to €236mn.

• Net financial debt at €1.713bn, equity ratio at 44%; working capital reduced to €2.541bn.

• S&P and Moody’s upgraded long-term ratings in mid-2024, but outlook revised to negative due to weaker 2024/25 performance.

• Liquidity reserves remain strong at €2.2–2.5bn, with diversified funding sources and manageable maturity profile.

• Cash flow for 9M 2024/25 was €368mn, down from €917mn prior year; investments in fixed assets increased to €417mn.

Segment performance (9M 2024/25)

• Sugar: Revenues stable at €3.1bn, but operating result turned negative due to sharp price declines and high production costs.

• Special products: Revenues down 6% to €1.7bn; operating result up slightly to €152mn, driven by higher margins.

• CropEnergies: Revenues fell 16% to €711mn; operating result dropped 87% to €8mn, mainly due to lower ethanol prices.

• Starch: Revenues down 13% to €724mn; operating result down 59% to €24mn, impacted by lower prices and a flood-related shutdown.

• Fruit: Revenues up 4% to €1.2bn; operating result up 14% to €75mn, with growth in fruit preparations offsetting margin pressure in concentrates.