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AGRANA Beteiligungs-AG

Annual Report Jun 1, 2016

733_10-k_2016-06-01_65a818d8-5640-4c86-a818-5e36163f007a.pdf

Annual Report

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Acting together.

Annual Financial Report 2015|16

Contents

Group management report 2

  • Organisational structure 4
  • Financial results 11
  • Sugar segment 18
  • Starch segment 26
  • Fruit segment 32
  • Sustainability 38
  • Research and development 44
  • AGRANA's people 47
  • Risk management 51
  • Capital, shares, voting rights and rights of control 57
  • Outlook 58

Consolidated financial statements 61

  • Consolidated income statement 62
  • Consolidated statement of comprehensive income 63
  • Consolidated cash flow statement 64
  • Consolidated balance sheet 65
  • Consolidated statement of changes in equity 66
  • Notes to the consolidated financial statements 68
  • List of members of AGRANA's boards 126
  • Subsidiaries and business interests 127
  • Statement by the members of the Management Board 131
  • Independent auditor's report 132

Parent company management report1 136

Parent company financial statements 159

  • Parent company income statement 160
  • Parent company balance sheet 161
  • Notes to the parent company financial statements1 162
  • Statement by the members of the Management Board 185
  • Independent auditor's report 186
  • Proposal for the appropriation of profit 188

1

• • • • • • • • •

• • • •

Annual Financial Report 2015|16

of AGRANA Beteiligungs-AG for the year ended 29 February 2016

In this report on the 2015|16 financial year, the sustainability issues relevant to AGRANA's business activities under the G4 reporting standard of the Global Reporting Initiative are covered directly in the Group's management report. To make the non-financial information easier to find, a content index of all GRI G4 indicators included in the report is provided in the annual report 2015|16 from page 141. In addition, relevant passages are marked with a green fingerprint on the respective pages.

Group management report 2015|16

AGRANA Group (under IFRS)

Organisational structure 4

  • Business segments and sourcing models 4
  • About the sustainability coverage in this report 5

Financial results 11

  • Changes in the scope of consolidation 11
  • Revenue and earnings 11
  • Investment 13
  • Cash flow 14
  • Financial position 14
  • Financial results in each segment 16
  • Events after the balance sheet date 17

Sugar segment 18

  • Revenue and earnings 18
  • Market environment 19
  • Raw materials and production 21
  • Investment 25

Starch segment 26

  • Revenue and earnings 26
  • Market environment 27
  • Raw materials and production 28
  • Investment 31

Fruit segment 32

  • Revenue and earnings 32
  • Market environment 33
  • Raw materials and production 33
  • Investment 37

Sustainability 38

  • AGRANA's understanding of sustainability 38
  • AGRANA's sustainability activities in 2015|16 38
  • Economic footprint of the AGRANA Group 38
  • Environmental and social criteria in sourcing 39

  • Environmental and energy aspects of production 41

  • Working conditions and human rights in respect of AGRANA employees 41
  • Product responsibility and sustainable products 41
  • Compliance and business conduct 43
  • Social engagement 43

Research and development 44

  • Sugar segment 44
  • Starch segment 45
  • Fruit segment 46

AGRANA's people 47

  • Human resources management 47
  • Staff development and training 48
  • Working conditions and human rights 49
  • Workplace health and safety 49
  • Balancing work and family 50

Risk management 51

  • Risk policy 52
  • Significant risks and uncertainties 52
  • Operational risks 52
  • Regulatory risks 53
  • Legal risks 54
  • Financial risks 54
  • Risks from irregularities 55
  • Aggregate risk 55
  • System of internal control and of risk management 56

Capital, shares, voting rights and rights of control 57

Outlook 58

Sustainability outlook for 2016|17 59

• • • • • • • • • • • •

3

• • • • • • • • •

• • •

Organisational structure Group management report 4

AGRANA is a globally operating processor of agricultural raw materials, with its Sugar, Starch and Fruit segments manufacturing high-quality foods and many intermediate products for the downstream food industry as well as for non-food applications. With about 8,500 employees (in FTE1) at 53 production sites on six continents, the Group generated revenue of about € 2.5 billion in the 2015|16 financial year.

AGRANA was established in 1988 and has been quoted on the Vienna Stock Exchange since 1991.

Business segments and sourcing models

In the Sugar segment, AGRANA processes sugar beet from contract growers and also refines raw sugar purchased worldwide. The products are sold into downstream industries for use in, for example, sweets, non-alcoholic beverages and pharmaceutical applications. Under country-specific sugar consumer brands, AGRANA also markets a wide range of sugars and sugar specialty products to consumers through food retailers. In addition, in the interest of the most complete possible utilisation of its agricultural raw materials, AGRANA produces a large number of fertilisers and animal feedstuffs. These not only help the economic bottom line but also ecologically close the material cycle by returning minerals and other nutrients to the land and the food chain.

5

• • • • • • • • •

• • • •

In the Starch segment, AGRANA processes and refines raw materials grown by contract farmers or purchased in the open market – mainly corn (maize), wheat and potatoes – into premium starch products. These products are sold into the food and beverage industry and the paper, textile, cosmetics and building materials sectors, among others. The starch operations as well produce fertilisers and high-quality animal feeds. The production of climate-friendly bioethanol for blending with petrol is also part of the Starch segment's activities.

The Fruit segment custom-designs and produces fruit preparations (fruit ingredients) and fruit juice concentrates. AGRANA is the world's leading manufacturer of fruit preparations for the dairy, bakery and ice-cream industries. The fruit used in the fruit preparations is sourced largely from primary processors, in frozen or aseptic form. In some countries, AGRANA operates its own primary processing plants where fresh fruit (in some cases from contract growers) is received and readied for processing into fruit preparations. In the fruit juice concentrates business, at production sites located mainly in Europe, AGRANA produces apple and berry juice concentrates as well as not-from-concentrate juices and fruit wines. In the Fruit segment too, AGRANA seeks to achieve the most sustainable and complete utilisation of raw materials possible. While fruit preparations production generates very little usable residue, the press cake from apple juice production, known as apple pomace, is utilised by the pectin industry and as a feedstuff.

In all three business segments, AGRANA also processes raw materials from certified organic farming. The Group is one of the largest organic manufacturers in Europe.

About the sustainability coverage in this report

Key sustainability aspects

In the 2015|16 financial year, AGRANA's Sugar, Starch and Fruit segments processed a worldwide total of approximately 8.5 million tonnes of agricultural raw materials and sold 5.7 million tonnes of high-quality products.

Based on its business activities, AGRANA in 2012|13 identified six issues of interest along the product value chain that have material effects on sustainability, and created working groups for these issues:

  • █ Environmental and social criteria in the procurement of agricultural raw materials and intermediate products
  • █ Environmental and energy aspects of AGRANA's production
  • █ Working conditions and human rights in respect of AGRANA employees
  • █ Product responsibility and sustainable products
  • █ Compliance and business conduct
  • █ Social engagement

Through a materiality analysis, the AGRANA sustainability core team and the issue-specific working groups assessed the economic, environmental and social significance of individual sustainability aspects both for AGRANA and its stakeholders.

This was done on the basis of day-to-day work experience in the respective area, feedback from various stakeholders, and the results of a customer satisfaction survey started in autumn 2014 and continued in 2015|16 that included questions on sustainability.

Formats of AGRANA's engagement with stakeholders in the 2015|16 financial year

Focusing on suppliers

  • █ Regular one-on-one agricultural advisory visits (with contract growers in all three segments)
  • █ Group field visits and trial tours during the growing season (in the Sugar and Starch segments)
  • █ Contracting events (contract production of sugar beet and starch potatoes)
  • █ Winter conferences (communication events in the Sugar and Starch segments)
  • █ Fifteen farm forums (discussion forums at the farms of contract beet and potato growers with the AGRANA Management Board member responsible for raw material management and with interested farmers/suppliers)
  • █ "Mont Blanc" programme in all beet-growing countries (efficiency improvement in sugar beet production, with much advisory and education content)
  • █ New-contract-growers day (Starch segment)
  • █ BETAEXPO agricultural fair with Austria's largest field of demonstration plantings of AGRANA raw material crops

  • █ "Potato Day" in Waidhofen an der Thaya, Austria, in cooperation with the Austrian Starch Potato Growers Association (VÖSK)

  • █ Oktoberfest in Aschach, Austria

Focusing on customers

  • █ Personal visits to customers
  • █ Exhibiting at trade shows (see page 40)
  • █ Worldwide customer satisfaction survey

Focusing on local communities

  • █ Open house (in collaboration with the Federation of Austrian Industries) at the sugar factory in Leopoldsdorf and the fruit juice concentrate plant in Kröllendorf/Allhartsberg, both in Austria
  • █ BETAEXPO Family Day
  • █ Potato Day in Gmünd, Austria

Focusing on investors, the media and general public

  • █ Ongoing media and investor relations work
  • █ Press conferences, plant tours, background briefings, road shows

7

• • • • • • • • •

• • • •

Analysing the importance of GRI G4 aspects at AGRANA

Based on this ranking of the material aspects, AGRANA reports on the following G4 indicators along its value chain in this 2015|16 annual report:

Material Raised mainly
by the following
Content
boundary of
Management Reported
aspect stakeholder(s) reporting approach G4 indicator(s)
Supplier
human rights
assessment
Customers/AGRANA Suppliers
of agricultural
raw materials
AGRANA principles for
the procurement of
agricultural raw materials
and intermediate products
HR 10
Supplier
assessment for
labour practices
Customers/AGRANA Suppliers
of agricultural
raw materials
AGRANA principles for
the procurement of
agricultural raw materials
and intermediate products
LA 14
Supplier
environmental
assessment
Customers/AGRANA Suppliers
of agricultural
raw materials
AGRANA principles for
the procurement of
agricultural raw materials
and intermediate products
EN 32
Biodiversity Customers/AGRANA Relevant mainly in
AGRANA's upstream
value chain,
i. e., with suppliers
of agricultural raw
materials
AGRANA principles for
the procurement of
agricultural raw materials
and intermediate products
EN 13
Materials used Several
stakeholder groups
Raw materials
processed
AGRANA
Environmental Policy;
AGRANA principles for
the procurement of
agricultural raw materials
and intermediate products
EN 1
Energy
consumption
Several
stakeholder groups
Energy consumption
(Scope 1+2) in
AGRANA's production
AGRANA
Environmental Policy
EN 5
EN 6
Emissions Several
stakeholder groups
Emissions
(Scope 1+2) from
AGRANA's production
AGRANA
Environmental Policy
EN 18
EN 19
Water Several
stakeholder groups
Water use and
effluent from
AGRANA's production
AGRANA
Environmental Policy
EN 8
EN 22
Waste Several
stakeholder groups
Waste from
AGRANA's production
AGRANA
Environmental Policy
EN 23
Environmental
grievance
mechanisms
Several
stakeholder groups
Environmental
grievances
Grievances managed
on location
EN 34
Occupational
health and safety
Mainly AGRANA AGRANA employees
and contractors
AGRANA
Zero Accident Policy
LA 6
Training and
development
Mainly AGRANA AGRANA employees AGRANA Training Policy LA 9
Diversity and
equal opportunity
Several
stakeholder groups
AGRANA employees AGRANA Code of Conduct LA 12

9

• • • • • • • • •

• • • •

Material
aspect
Raised mainly
by the following
stakeholder(s)
Content
boundary of
reporting
Management
approach
Reported
G4 indicator(s)
Assessment of
the Group in respect
of human rights
Several
stakeholder groups
AGRANA employees
and contractors
AGRANA Code of Conduct
and membership in
SEDEX (plus SMETA audits)
HR 9
Grievance
mechanisms for
labour practices
and human rights
AGRANA employees AGRANA employees AGRANA Code of Conduct;
AGRANA HR strategy
LA 16
HR 12
Child labour,
forced or
compulsory labour
Several
stakeholder groups
AGRANA employees AGRANA Code of Conduct HR 5
HR 6
Freedom of
association
Several
stakeholder groups
AGRANA employees AGRANA Code of Conduct HR 4
Consumer
health and safety
Several
stakeholder groups
AGRANA AGRANA
Quality Mission Statement
PR 4
Customer
satisfaction
AGRANA/customers AGRANA AGRANA
Quality Mission Statement
PR 5
Stakeholder
engagement
All stakeholders AGRANA AGRANA Mission Statement;
AGRANA Code of Conduct
Standard
disclosure
Local social
engagement
Engagement
Several
stakeholder groups
AGRANA AGRANA Mission Statement;
Three principles
of sustainability
SO 1
Compliance AGRANA and several
stakeholder groups
AGRANA and
direct business
partners
All of the
above documents
SO 3
SO 4
SO 5

Organisational boundaries of GRI reporting

With the exceptions named below, the sustainability information integrated in this 2015|16 annual report and visually marked with a green fingerprint represents all AGRANA Group companies worldwide. These performance data, which are material to AGRANA's business activities, were generated in accordance with the Global Reporting Initiative (GRI) version G4, level "Core".

For organisational boundary reasons, the sustainability data do not include the equity-accounted joint ventures of the AGRANA Group – the AGRANA-STUDEN group (in the Sugar segment) and the HUNGRANA group (in the Starch segment). INSTANTINA (in the Sugar segment) is also excluded from the scope of the data, as a result of its different business activity.

The data on energy use, emissions, water and waste in or from processing in AGRANA fruit processing plants for the 2015|16 and 2014|15 financial year include the data for the full year for all production sites of the Fruit segment that were active at the respective balance sheet date, with the exception (related to data quality) of the fruit juice concentrate plant in Xianyang City, China. In the 2013|14 financial year, the reported environmental sustainability data for the first time included information for the joint venture AUSTRIA JUICE GmbH, with the following exceptions: For organisational reasons, the AUSTRIA JUICE facilities in Gleisdorf, Austria (closed down after the 2013 campaign), Bingen, Germany (fruit wine production) and Xianyang City, China (data quality) were not included in the reporting for 2013|14, and the reported data for the included sites was limited to the respective processing campaign.

Content boundaries of GRI reporting

AGRANA reports all GRI G4 indicators by business segment, as the differences in business processes between AGRANA's three business segments could reduce or distort the significance of the data consolidated at Group level (for example, data on energy consumption and emissions).

Supplier assessment for human rights, labour practices and environmental aspects

In view of its core business of processing agricultural raw materials and of the associated high procurement volumes and costs, AGRANA limits its reporting scope for these aspects to suppliers of agricultural raw materials and intermediate goods (such as frozen fruit pieces).

Biodiversity

AGRANA as a processor of agricultural raw materials is dependent on the availability of these inputs and thus on the functioning of local ecosystems. For this reason, biodiversity is an important element of sustainability for AGRANA, especially in its upstream value chain in the farming landscape. In this annual report, AGRANA to the extent possible publishes biodiversity aspects of raw material procurement from contract growers in the respective business segment's report.

Energy consumption and emissions

AGRANA processes organic inputs such as sugar beet, grain, potatoes and fruit whose crop volume, sugar or starch content and quality are subject to annual fluctuation as a result of changing influences during the growing season and harvest. Product quantities at each site, along with the associated energy consumption, thus vary from one reporting season to the next. Presenting absolute totals for energy consumption and emissions would therefore not be meaningful.

AGRANA consequently only reports energy intensity and emission intensity per tonne of product manufactured (core and by-products), by business segment. Reductions achieved as a result of energy efficiency improvement and of emission-cutting measures are reported on an absolute basis and on a percentage basis per tonne of product.

AGRANA's reporting of energy use and emissions is confined to its own production operations and, respectively, to Scope 1 and Scope 2. The reasons are the very limited availability of data for Scope 3, and also that Scope 3 sources are in some cases (such as business travel) negligible compared to the large contributions which the production operations make to the carbon footprint through their energy consumption and emissions.

Water and effluent (wastewater)

AGRANA reports water and wastewater figures solely for its core business, the processing of agricultural raw materials in its production plants. Data on water use in the upstream value chain (i. e., in the production of agricultural raw materials) are not sufficiently complete or reliable for all raw materials used worldwide and are therefore not reported.

Water – perhaps the planet's most important resource – is one of many inputs in the production processes of the AGRANA Group. The use and discharge of water at all sites follows sustainable practices. In its processes, AGRANA frequently utilises the water contained in the agricultural raw materials.

Thus, much of the water required by a sugar factory is obtained from the beet itself. Sugar beet has a water content of about 75%, which must be separated from the sugar during the manufacturing process. This water is used both to leach the sugar out of the cossettes (the sliced beet) and to transport and clean the beet. The used water is continually cleaned and returned to the process cycle. Much the same is true in fruit juice concentrate production from apples, which contain about 86% water.

Waste

Agricultural raw materials are far too valuable for AGRANA not to utilise them to the fullest. The Groupwide principle of complete utilisation is practiced by producing both a wide range of high-quality foods and intermediate products for downstream industries and – particularly in the Sugar and Starch segments – manufacturing a very broad portfolio of by-products, especially feedstuffs and fertilisers. These not only contribute significantly to the economic bottom line but also close nature's material cycle by returning minerals and other nutrients to the land and the food chain.

In some countries, the by-product feeds and fertilisers marketed (or in some cases given away free) by AGRANA must be reported as waste for regulatory reporting purposes, solely for reason of the local regulatory regimes. Beginning with the 2015|16 reporting period, AGRANA no longer reports these as waste in the annual report, as they are directly used as valuable feedstuffs or fertilisers in animal husbandry or crop cultivation.

Financial results 11 Financial results

• • • • • • • • • • • •

11

• • • • • • • • •

• • • •

The consolidated financial statements for the 2015|16 financial year (the twelve months ended 29 February 2016) were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

Changes in the scope of consolidation

In the 2015|16 financial year the Group saw six deconsolidations, including four as a result of mergers, such as the merging of AGRANA J&F Holding GmbH, Vienna, into AGRANA Internationale Verwaltungs- und Asset-Management GmbH, Vienna. Two companies were included in the Group accounts for the first time: AGRANA Research & Innovation Center GmbH, Vienna, by full consolidation, and AGRANA-STUDEN Albania sh.p.k, Tirana, Albania, by the equity method.

In total, 58 companies were fully consolidated (end of 2014|15 financial year: 63 companies) and 12 companies were accounted for using the equity method (end of 2014|15 financial year: 11 companies).

Revenue and earnings

Consolidated income statement 2015 16 2014 15 Change
(condensed) % / pp
Revenue €000 2,477,647 2,493,512 –0.6%
EBITDA1 €000 191,957 181,916 +5.5%
Operating profit before
exceptional items and results of
equity-accounted joint ventures
€000 107,486 102,017 +5.4%
Share of results of
equity-accounted joint ventures €000 24,523 25,372 –3.3%
Exceptional items €000 (3,054) (5,670) +46.1%
Operating profit [EBIT]2 €000 128,955 121,719 +5.9%
EBIT margin % 5.2 4.9 +0.3 pp
Net financial items €000 (24,519) (5,240) –367.9%
Income tax expense €000 (23,508) (31,901) +26.3%
Profit for the period €000 80,928 84,578 –4.3%
Earnings per share 5.82 5.70 +2.1%

Group revenue in the 2015|16 financial year was € 2,477.6 million, or very slightly below the level of the prior year. A decrease in Sugar segment revenue to € 672.6 million or by 8.0% was the result of the lower sales prices. Revenue in both the Starch segment (€ 721.6 million, up 3.1%) and Fruit segment (€ 1,083.4 million, up 2.0%) was slightly higher than in the year before.

Revenue by segment in 2015|16

Revenue by segment in 2014|15

1 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.

2 Operating profit (EBIT) is after exceptional items and results of equity-accounted joint ventures.

Somewhat more than 50% of Group revenue was generated by subsidiaries based in Austria.

Operating profit (EBIT), at € 129.0 million, grew moderately (by 6.0%) from the prior-year level. While EBIT in the Starch segment, at € 65.9 million, rose substantially by 21.8%, the lower revenue in the sugar business led to markedly weaker (but positive) EBIT in the Sugar segment of € 4.3 million, a decrease of 52.2%. In the Fruit segment, EBIT was steady (at € 58.8 million, up 0.3%) despite a significant reduction in fruit juice concentrate earnings. Details on the share of results of equity-accounted joint ventures and on exceptional items can be found in the segment reports and the consolidated financial statements.

Net financial items in the 2015|16 financial year amounted to a net expense of € 24.5 million (prior year: net expense of € 5.2 million); the significant negative year-on-year change was attributable to net currency translation losses that represented a negative change of € 21.3 million from the prior year's translation gains. The translation losses were caused primarily by depreciation in the currencies of Argentina, Brazil, China, Mexico and Russia. Net interest expense, meanwhile, improved by € 1.8 million thanks to a further decline in interest rates and the optimised use of existing liquid assets.

13

• • • • • • • • •

• • • •

Net financial items 2015 16 2014 15 Change
%
Net interest (expense) €000 (8,376) (10,181) +17.7%
Currency translation differences €000 (13,524) 7,754 –274.4%
Share of results of non-consolidated
subsidiaries and outside companies €000 29 769 –96.2%
Other financial items €000 (2,648) (3,582) +26.1%
Total €000 (24,519) (5,240) –367.9%

Profit before tax decreased from the prior year's € 116.5 million to € 104.4 million. After an income tax expense of € 23.5 million based on a tax rate of 22.5% (prior year: 27.4%), the Group's profit for the period was € 80.9 million (prior year: € 84.6 million). Profit for the period attributable to shareholders of AGRANA was € 82.7 million (prior year: € 80.9 million); earnings per share increased to € 5.82 (prior year: € 5.70).

Investment

In 2015|16, AGRANA invested a total of € 116.0 million, or € 24.8 million more than in the prior year. The analysis of this capital spending on purchases of property, plant and equipment and intangible assets by segment is as follows:

Investment1 2015 16 2014 15 Change
% / pp
Sugar segment €000 46,102 34,476 +33.7%
Starch segment €000 28,151 13,743 +104.8%
Fruit segment €000 41,730 42,990 –2.9%
Group €000 115,983 91,209 +27.2%
Depreciation, amortisation
and impairment €000 85,381 80,065 +6.6%
Investment coverage % 135.8 113.9 +21.9 pp

The investment in the Sugar segment focused mainly on yield, by-product utilisation and energy efficiency; in the Starch segment it centred on heightening the degree of refining intensity. The installation of an additional freezer tunnel for IQF2 fruit in Mexico was the largest project in the Fruit segment. Overall, the AGRANA Group's capital investment was about 36% above the amount of depreciation. The key projects in the individual segments are described in detail in the segment reports.

Investment by segment in 2015|16

1 Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill.

2 Individually quick-frozen.

Cash flow

Consolidated cash flow statement 2015 16 2014 151 Change
(condensed) %
Operating cash flow before
changes in working capital €000 225,914 208,066 +8.6%
Changes in working capital €000 (73,691) 52,041 –241.6%
Losses on disposal
of non-current assets €000 (50,310) (32,964) –52.6%
Net cash from operating activities €000 101,913 227,143 –55.1%
Net cash (used) in investing activities €000 (19,924) (84,151) +76.3%
Net cash (used) in financing activities €000 (163,613) (81,145) –101.6%
Net increase in
cash and cash equivalents €000 (81,624) 61,847 –232.0%
Effects of movements
in foreign exchange rates
on cash and cash equivalents €000 (2,819) (3,885) +27.4%
Cash and cash equivalents
at beginning of period €000 193,818 135,856 +42.7%
Cash and cash equivalents
at end of period €000 109,375 193,818 –43.6%
Free cash flow2 €000 81,989 142,992 –42.7%

Operating cash flow before changes in working capital rose moderately from the prior year, to € 225.9 million in 2015|16. After a significant increase of € 73.7 million in working capital (prior year: decrease of € 52.0 million) and a higher income tax expense, net cash from operating activities amounted to € 101.9 million (prior year: € 227.1 million). Net cash used in investing activities was € 19.9 million (prior year: net cash use of € 84.2 million) as higher payments for purchases of property, plant and equipment and intangibles were offset by proceeds from non-current financial assets. Net cash used in financing activities of € 163.6 million (prior year: net cash use of € 81.1 million) reflected both the payment of the dividend for the 2014|15 financial year and the repayment of borrowings to Südzucker AG. Free cash flow declined by about 43% year-on-year.

Financial position

Consolidated balance sheet 29 Feb 28 Feb Change
(condensed) 2016 2015 % / pp
Non-current assets €000 1,027,647 1,136,643 –9.6%
Current assets €000 1,213,887 1,270,244 –4.4%
Non-current assets held for sale €000 1,631 0
Total assets €000 2,243,165 2,406,887 –6.8%
Equity €000 1,200,124 1,194,420 +0.5%
Non-current liabilities €000 378,678 418,064 –9.4%
Current liabilities €000 664,363 794,403 –16.4%
Total equity and liabilities €000 2,243,165 2,406,887 –6.8%
Net debt €000 405,806 330,283 +22.9%
Gearing ratio3 % 33.8 27.7 +6.1 pp
Equity ratio % 53.5 49.6 +3.9 pp

Total assets at 29 February 2016 were € 2,243.2 million, a decrease of € 163.7 million from the year-earlier level. Especially the redemption by RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN regGnmbH of the participation capital (€ 85 million) which had been held in non-current securi-

1 The prior-year data have been restated. Further information is provided on page 72 in the notes to the

consolidated financial statements.

2 Total of net cash from operating activities and net cash used in investing activities.

3 Ratio of net debt to total equity.

15

• • • • • • • • •

• • • •

ties led to a reduction of € 109.0 million in non-current assets, despite investment in excess of depreciation in property, plant and equipment. While inventories expanded significantly for volume and price reasons (by € 28.9 million), cash and cash equivalents contracted sharply (by € 84.4 million), which on balance also resulted in lower current assets.

AGRANA's equity ratio of 53.5% represented an improvement of almost 4 percentage points from the year-earlier level of 49.6%. On the liabilities side of the balance sheet, non-current liabilities eased moderately as a result mainly of a € 33.6 million reduction in non-current borrowings. Current liabilities showed a pronounced decrease, reflecting significantly lower current borrowings (down € 61.5 million) and a drop of € 36.1 million in trade payables.

Net debt as of 29 February 2016 stood at € 405.8 million, up significantly as expected (by € 75.5 million) from the 2014|15 year-end level. The gearing ratio of 33.8% at the balance sheet date was thus higher than on 28 February 2015, when it stood at 27.7%.

As a result of the Group's realignment of its financing structure in 2014|15, no capital market transactions were required in the financial year under review. The funds freed up by the disposal of the participation capital were used to repay a loan from Südzucker AG, with the effect of reducing gross debt from the prior year's level of € 629.0 million at 28 February 2015 to € 533.8 million at 29 February 2016.

Financial results in each segment

In the 2015|16 financial year, revenue in the Sugar segment decreased by 8.0% year-on-year to € 672.6 million. While sugar sales prices especially with the sugar-using industry and with resellers (food wholesalers and retailers) were down significantly from the prior year, growth was achieved in the sales quantities of quota sugar, particularly with the food industry. Sales volumes of non-quota sugar with the chemical industry were nearly at the year-earlier level, while exports to non-EU countries were down significantly. Revenue from by-products receded slightly for price reasons. The Sugar segment accounted for 27.2% of Group revenue (prior year: 29.3%).

As expected, EBIT (earnings before interest and taxes), at € 4.3 million, also fell year-on-year (from € 9.0 million). The key negative driver was the significant decline in sugar selling prices compared with the prior year. In the first six months of the prior year, higher prices were still being received from the 2013|14 campaign. The EBIT improvement in the last six months of the 2015|16 financial year was attributable primarily to the year-on-year drop in the cost of raw sugar and to the additional contribution margin from the higher sales volume.

Further details on the results in the Sugar business are given in the segment report from page 16.

Revenue in the Starch segment in 2015|16 was € 721.6 million, up slightly by 3.1% from the previous year. Among other areas, the revenue growth was achieved in the bioethanol business, which benefited from higher selling prices, and in wet starch derivatives, thanks to higher sales volumes. Decreased revenue from saccharification products reflected the persistent low prices in the European sugar market. By-products brought in slightly less revenue than in the prior year, as a result of lower raw material prices. The Starch segment generated 29.1% of the Group's revenue (prior year: 28.1%).

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EBIT of € 65.9 million significantly surpassed the year-earlier result, by 21.8%. Besides price-driven margin growth (notably in ethanol) and higher sales volumes, this increase was explained by lower raw material and energy prices. Profitability in terms of EBIT margin rose from 7.7% to 9.1%. The earnings decrease at HUNGRANA, the equity-accounted subsidiary, was a result of the lower sales prices for saccharification products.

Further details on the results of the Starch business are provided in the segment report from page 16.

Fruit segment revenue rose by 2.0% in the 2015|16 financial year to € 1,083.4 million. In the fruit preparations division, revenue expanded by about 8%, reflecting both sales volume that rose slightly from one year earlier, and higher sales prices that were amplified by favourable currency effects (mostly from the US dollar, Chinese yuan, Korean won and Egyptian pound). In the fruit juice concentrates division, on the other hand, revenue declined by about 18% as a result mainly of sharply lower selling prices for apple juice concentrate from the 2014 crop. The Fruit segment was responsible for 43.7% of Group revenue (prior year: 42.6%).

EBIT in the Fruit segment was € 58.8 million and thus steady at the year-earlier level. While the fruit preparations division showed a significant improvement in EBIT, the lower apple prices of the 2014 campaign and the associated considerable decline in concentrate prices negatively affected margins in the fruit juice concentrate activities. In fruit preparations, a significantly positive business trend was felt particularly in Europe, North and Latin America, Asia/Australia and Middle East/North Africa, while currencies that strengthened against the euro (most notably the US dollar, Korean won and Chinese yuan) also contributed to the gain in EBIT. The net exceptional items expense of € 3.1 million was related primarily to the restructuring project of Dirafrost FFI N.V., Herk-de-Stad, Belgium; however, most of the project's one-time costs had already been recognised in the 2014|15 consolidated financial statements.

Further details on the results in the Fruit business are supplied in the segment report from page 30.

Events after the balance sheet date

No significant events occurred after the balance sheet date of 29 February 2016 that had a material effect on AGRANA's financial position, results of operations or cash flows.

Group management report 18 Sugar segment

Basics of the Sugar segment

Marketing relationship B2B and B2C

Products

Sugars and sugar specialty products, by-products (feedstuffs and fertilisers)

Raw materials processed

Sugar beet, and raw sugar from sugar cane

Key markets

Austria, Hungary, Romania, Czech Republic, Slovakia, Bosnia-Herzegovina (Western Balkans region), Bulgaria

Customers

Downstream manufacturers (particularly confectionery, beverage and fermentation industries), food retailers (for consumer products)

Special strengths

High product quality standards; product offering tailored to customer needs

Revenue by product group in 2015|16

AGRANA Zucker GmbH, Vienna, as the parent company of the Group's Sugar activities, both has direct Austrian operations and acts as the holding company for the Sugar segment's businesses in Hungary, the Czech Republic, Slovakia, Romania, Bulgaria and Bosnia-Herzegovina. Also assigned to the Sugar segment are INSTANTINA Nahrungsmittel Entwicklungs- und Produktionsgesellschaft m.b.H., Vienna, AGRANA Research & Innovation Center GmbH, Vienna, and the Group holding company, AGRANA Beteiligungs-AG, Vienna. Since the beginning of the 2014|15 financial year, the equity method is used to account for the joint ventures of the AGRANA STUDEN group in the consolidated financial statements.

Revenue and earnings

Sugar segment 2015 16 2014 15 Change
% / pp
Total revenue €000 739,912 812,265 –8.9%
Inter-segment revenue €000 (67,268) (81,127) +17.1%
Revenue €000 672,644 731,138 –8.0%
EBITDA1 €000 25,397 29,355 –13.5%
Operating profit before
exceptional items and results of
equity-accounted joint ventures €000 2,764 9,699 –71.5%
Share of results of
equity-accounted joint ventures €000 1,542 (1,721) +189.6%
Exceptional items €000 0 1,002 –100.0%
Operating profit [EBIT]2 €000 4,306 8,980 –52.0%
EBIT margin % 0.6 1.2 –0.6 pp
Investment3 €000 46,102 34,476 +33.7%
Number of employees (FTE)4 2,185 2,297 –4.9%

Total sales quantities of sugar products rose compared to the prior year, with differences between markets. While the volume of retail quota sugar eased slightly, there was a clear increase in quota sugar sold into the food and beverage industry, especially in Hungary and Romania. The quantity of non-quota sugar sold to the chemical industry was held at the prior-year level, while sales of the same commodity outside the EU fell by about 38%.

Operating profit was negatively affected mainly by significantly lower prices. Particularly the quota sugar prices for sales to the downstream food industry declined considerably, and selling prices achieved with food resellers were also down. The price erosion was noticeable in all countries and outweighed the beneficial effect of easing raw material costs especially for raw sugar.

The result of the AGRANA-STUDEN group, which is included in the consolidated financial statements by the equity method of accounting, improved amid the low world market prices for raw and white sugar and the good utilisation of the refinery in Bosnia-Herzegovina, and thus was a positive influence in the Sugar segment's EBIT.

  • 1 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.
  • 2 Operating profit (EBIT) is after exceptional items and results of equity-accounted joint ventures.
  • 3 Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill.

4 Average number of full-time equivalents in the reporting period.

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The 2014|15 net exceptional items income of € 1.0 million in the Sugar segment represented refunds for overpayments of EU production levies.

Market environment

World sugar market

For the 2015|16 sugar marketing year (SMY, 1 October 2015 to 30 September 2016) the analytics firm F.O. Licht in its second, revised estimate of the world sugar balance dated 5 February 2016 is forecasting the first deficit in six years. While demand is continuing to rise, global sugar production will decline. Although Brazilian sugar production is expected to grow in response to the attractiveness of the world market price in local currency, world sugar output is shrinking as a consequence particularly of smaller harvests in the EU and also in India. World sugar stocks at the end of SMY 2015|16 are therefore predicted to decrease for the first time in six years, by a significant 6.4 million tonnes.

World sugar balance1 2015 16 2014 15 2013 14
Million tonnes, except %
Opening stocks 78.4 77.5 72.8
Production 176.9 181.7 181.3
Consumption (181.7) (178.9) (176.0)
Corrections (1.6) (1.9) (0.6)
Closing stocks 72.0 78.4 77.5
In % of consumption 39.6 43.8 44.0

World market prices for sugar remained highly volatile in the 2015|16 financial year. At the beginning of the financial year the white and raw sugar quotations briefly rose, but then fell to their lowest levels in seven years owing to the drastic weakening of the Brazilian real – the currency of the world's largest sugar producer and exporter – against the US dollar. In the further course of the year the anticipation of the world market deficit in 2015|16 gained relevance, ushering in a significant rally in sugar prices since the end of September. After a passing price drop at the beginning of the 2016 calendar year, the closing prices at the end of the year under review (29 February 2016) were about US\$ 407 (€ 374) per tonne for white sugar and US\$ 321 (€ 295) per tonne for raw sugar.

EU sugar market

In the present SMY 2015|16, after the record crop of the previous year, the restricted marketing opportunities for non-quota sugar triggered a substantial reduction in cultivation area in the EU. At the same time, the yields of the 2015 campaign came in below the record prior year and, in much of Europe, even below the multiyear average. Sugar production in the EU is therefore expected to fall significantly to 15.6 million tonnes (SMY 2014|15: 20.3 million tonnes), leading to a decline in stocks of non-quota sugar. For preferential imports to increase, prices in the EU would have to be at least high enough to allow the imported sugar to be marketed on a break-even basis. Quota sugar stocks are expected to register a further decline at the end of SMY 2015|16.

International sugar prices during AGRANA's 2015|16 financial year

US\$ per tonne

Raw sugar (New York #11)

In the completed SMY 2014|15, amid record yields throughout Europe, the EU sugar quota was fully utilised and the production of non-quota sugar was very high. Given the limits on the sale of non-quota sugar, large quantities were carried over to SMY 2015|16. Due to dramatically reduced sugar prices in the EU, preferential imports in the last sugar marketing year remained well below the previous year. The quota sugar stocks at the end of SMY 2014|15 were therefore down significantly.

In October 2015 the European Commission (EC) released the first tranche, or 650,000 tonnes, of the export allowance of European non-quota sugar. At the end of January 2016 the EC also released the second tranche of export licences, for 700,000 tonnes. The total represents the export limit of 1.35 million tonnes set by the World Trade Organisation (WTO).

Customers in industry and resellers

Sugar sales volume with industrial customers and resellers showed a positive overall trend in AGRANA's geographic territory. Through a widening of the customer base and intensified collaboration with key accounts, the quantities sold to industry were boosted by about 10%. In the reseller market segment, with the rising purchasing power in the Eastern European countries, there is not only growth in consumption in general but also rising demand for specialities. To continue to maintain and where possible expand its strong market position going forward, AGRANA's goal here is to intensify its existing brand strategy and the specialties marketing and strengthen the local brands. Especially in Eastern Europe, demand for sugar specialties is likely to rise in the long term. Demand for organic products in the Sugar segment was steady.

EU sugar policy

After the coming expiration on 30 September 2017 of the sugar and isoglucose quotas and the minimum beet price, the new regime for the intra-EU market – besides an unchanged reference price of € 404 per tonne for white sugar – provides for the possibility of governmentfunded private storage, and contracts between beet growers and the sugar industry will remain mandatory. As a consequence of the market liberalisation, the volume and price volatility in the world market will feed through to the EU sugar market more strongly than before.

The tariff protection of the EU sugar market for imports from non-EU countries is not affected by the change in the sugar regime. AGRANA also believes that, after the quotas are abolished, sugar exports will no longer be subject to volume limits in the future, as the absence of quotas and of a minimum beet price will remove any (regulatory) basis for the WTO export limit.

Sugar exports

In 2013, negotiations began between the EU and the USA towards a free trade agreement (the Transatlantic Trade and Investment Partnership, or TTIP) aimed at extensive market liberalisation.

Only about 10% of trade goods are currently classified as "sensitive products" that are either to be covered by special derogations or to be completely excluded. Sugar and sugar-containing products are to be discussed in the final rounds of the TTIP talks.

In the TTIP, the question of rules of origin has particular importance for the sugar sector, as the USA is subject to duty-free, quota-free sugar imports from Mexico under the North American Free Trade Agreement (NAFTA).

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Sustainability in the Sugar segment

Economic footprint1

€ 102.5 million of direct gross value added

€ 292.0 million of total gross value added

Each job at AGRANA creates up to 4 more jobs in other companies

Targets in the supply chain

2015|16: Introduction of SAI FSA for contract beet production in 5 countries

Environmental targets by 2020|21

Direct energy consumption of 2.80 GJ per tonne of product

Water consumption of 2.17 m³ per tonne of product

Value chain

www.agrana.com/en/ sustainability/ value-chain/sugar

Raw materials and production

The area of sugar beet fields harvested by AGRANA's approximately 7,700 contract farmers in SMY 2015|16 was about 95,000 hectares (prior SMY: 98,000 hectares); about 850 hectares of this (prior SMY: 600 hectares) was used for organic production. An extremely dry and hot summer meant a poor 2015 growing season on balance for sugar beet. The planting area reduction combined with below-average beet yields resulted in a sharply lower beet crop volume. In total, the AGRANA Group processed about 5.4 million tonnes of beet (prior year: 7.7 million). Owing to weather conditions during the growing season and autumn, as well as the comparatively short duration of beet storage, the mean sugar content of the 2015 crop, at 16.8%, was above average (prior year: 15.2%).

AGRANA's seven beet sugar factories processed a daily average of about 49,800 tonnes of beet during the campaign (prior year: 48,400 tonnes). Over an average campaign length of 115 days (prior year: 164 days), the beet was used to produce approximately 812,000 tonnes of sugar (prior year: 999,000 tonnes). Sugar production thus significantly exceeded AGRANA's EU beet sugar quota of 618,000 tonnes. The volumes in excess of the quota were marketed as non-quota sugar to the chemical industry or sold outside Europe. In the 2015|16 financial year AGRANA also refined approximately 368,300 tonnes of white sugar equivalent from raw sugar (prior year: 277,500 tonnes).

To also assure a sustainable supply chain for raw sugar as an input product, AGRANA since 2014 holds a Chain of Custody certification under the internationally recognised Bonsucro standard for all its refining facilities. This certificate allows AGRANA's customers to display the Bonsucro logo on their products. Also, in 2015|16 AGRANA for the first time purchased certified organic raw sugar from Brazil and fair-trade-certified raw sugar from Fiji, for refining. As well, in the organic beet campaign, the Group produced around 4,600 tonnes of organic beet sugar (prior year: about 4,200 tonnes).

Engagement in the upstream value chain

In the 2015|16 financial year the Sugar segment – applying the AGRANA principles for the procurement of agricultural raw materials and intermediate products, which prescribe the use of good agricultural practice (GAP) and fair working conditions – introduced the Farm Sustainability Assessment (FSA) of the Sustainable Agriculture Initiative (SAI) for its sugar beet growers.

Implementation of the SAI's Farm Sustainability Assessment

In 2015|16, in addition to benchmarking the regulatory and legal environment to the SAI standards – i. e., comparing the cross compliance regulations2 of the EU and the legal requirements of AGRANA's beet sourcing countries to the requirements of the SAI – the Group also initiated the large-scale surveying of the actual sustainability status of the suppliers' operations through the FSA questionnaire.

In spring 2015 the FSA questionnaire for the self-assessment by farmers was made available on AGRANA's corporate web-based raw material information system (RIS) to contract growers of sugar beet in Austria, the Czech Republic and Slovakia. In Romania and Hungary, at this first stage, the self-assessment data were collected using a paper form; for the 2016 crop year the FSA for these countries too is planned to be conducted online using the RIS tool. On

2 See annual report 2015|16 in the "Glossary" section.

1 Calculated based on the data for the 2014|15 financial year.

For more information, see www.agrana.com/en/sustainability/profit/footprint

balance in the five AGRANA beet-growing countries, from May to December 2015, about 630 questionnaires voluntarily completed by sugar beet suppliers were analysed. The response rates ranged from 7% to 34% depending on the country.

While the legal requirements for growing and contractgrowing of sugar beet in Austria, Romania, Slovakia, the Czech Republic and Hungary correspond to SAI bronze status, the voluntary disclosure provided by the individual farms showed an even better sustainability landscape: Both in Austria and Hungary, 50% or more of respondent farms attained gold standing and the other farms achieved silver status. The performance was even higher in the Czech Republic, where about two-thirds of growers reached gold status and one-third were rated as silver; the opposite ratio applied in Romania and Slovakia. Gold and silver ratings mean that the participants are using additional sustainable management practices above and beyond adherence to EU and national legislation.

Beginning with the Austrian farmers, an internal verification process was developed based on stratified random sampling of these self-assessments (stratified by several farm attributes), and the actual auditing began in early 2016. This is to ensure that the questions were correctly understood, and gives the growers an opportunity to provide feedback on the content and process of the self-assessment. The resulting insights are then used both for refining the SAI system and in the continual improvement of the individual farms. For the 2016 crop year AGRANA seeks to expand the voluntary participation by contract growers.

Building awareness of good agricultural practice

In the 2015|16 financial year AGRANA continued to invest heavily in awareness-building for good farming practices, through initiatives like the on-going "Mont Blanc" project, through the Group's annual BETAEXPO event for contract growers, and through agricultural advisors.

"Mont Blanc" is an efficiency programme in place since 2012|13 that aims to boost sugar yield per hectare by up to 20% by 2017; it supports sustainability efforts through the resource-saving use of farm inputs for the benefit of farmers, environment and society. The keynote theme of the programme in 2015, the International Year of the Soil, was soil fertility. At 62 demonstration farms across the entire growing region, visiting growers were able to

glean new ideas on subjects such as soil cultivation systems. Growers' ability to identify and exploit room for improvement in their practices is aided by a judicious selection of demonstration fields, field tours during the growing period and numerous field trials whose results were systematically summarised and made available to all participants.

Under the motto "Sustainable Supply in Future", the 15th BETAEXPO was held in June 2015, dedicated to communicating good agricultural practices particularly to AGRANA contract growers. On the approximately 700 demonstration plots of the twelve-hectare BETA-EXPO grounds next to the sugar factory in Tulln, Austria, about 3,500 visitors were able to view actual plantings of the AGRANA contract crops and innovations like the AGRANA catch-crop mix that won recognition under the 2014 Raiffeisen Climate Protection Challenge.

In connection with BETAEXPO, the first annual "AGRANA Sustainability Award" was presented to selected contract farmers with especially sustainable farming practices, including growers of sugar beet and organic sugar beet, in order to reinforce all suppliers' awareness of the importance of sustainable management along the entire value chain (also see the "Sustainability" section on page 38).

Biodiversity in the upstream value chain

AGRANA's network of agricultural advisors is instrumental in the Group's long-standing close partnership with its contract growers. In 2015|16 the advisory programme again included seminars for interested farmers on environmentally sound and biodiversity-enhancing farm management. These events are also credited for the purpose of the Austrian Agri-Environmental Programme and were fully booked.

In the 2015|16 financial year, no fewer than 3,000 hectares were already "greened" with the catch-crop mix from Österreichische Rübensamenzucht GmbH, a not-for-profit subsidiary of AGRANA Zucker GmbH that makes GMO-free seed available to the contract farmers. It loosens the soil structure, mobilises nutrients, activates soil fauna and improves field biodiversity. What is more, the flowering fields provide ideal forage for wild animals, offer honey plants for bees, and add to the aesthetic dimension of the landscape.

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Informative "Sweet Treat" message

To make the responsible practices in its upstream value chain more visible for customers and consumers, AGRANA in 2015|16 for the first time used a distinctive symbol on the packaging of the "Wiener Zucker" branded sugar products to communicate them. The slogan "Sweet Treat" on the representation of a postage stamp helps to publicise the sustainable farming methods of Austrian beet growers. Educational messages from farmers, delivered with the slogan, are to make sustainability more tangible for AGRANA customers and consumers. In the 2015 crop year, Sweet Treat information signs were placed in many road-side fields in beet growing areas.

Transport

Although the transport of raw materials and sugar products only represents a comparatively low 5% to 10% of the carbon footprint of the Sugar segment (depending on the calculation method and country), AGRANA strives to make transport as sustainable as infrastructure and economics will allow. In total across all production countries in the 2015|16 processing season, about 37% of beet was delivered to the sugar plants by rail, with the proportion highest in Austria at approximately 44%.

Energy use and emissions in processing

The average specific direct energy consumption per tonne of product (both core and by-products) in the Sugar segment eased by about 4.1% in the 2015|16 financial year compared to one year earlier. This was due mainly to the generally more favourable campaign results in the year, with a higher sugar content of the beet, higher juice purity and shorter campaign length. At the Hungarian sugar factory in Kaposvár, in the 2015|16 campaign about 56.5% of the facility's primary energy needs were met from biogas produced on-site. Additionally, some of the biogas generated by the factory was refined into 750,000 cubic metres of biomethane by the biogas upgrading plant installed in autumn 2015, for feeding into the local natural gas grid. The biomethane injected into the grid was equivalent to the annual heating requirement of about 300 single-family homes.

The average specific indirect energy consumption per tonne of product rose by approximately 12.4% yearon-year, as a result of a lower degree of energy selfsufficiency both in Kaposvár, Hungary, and at some other plants.

On balance, the average specific emissions from direct and indirect energy consumption per tonne of product decreased by about 2.1% from the prior year because of changes in the energy mix (see chart on page 22).

Following the introduction of an ISO 50001-certified energy management system at the Austrian production sites of AGRANA Zucker GmbH in 2014, the two locations in the Czech Republic were certified in the 2015|16 financial year. The certification of the remaining facilities in Romania, Hungary and Slovakia will be completed by the middle of 2016.

Average specific direct energy consumption in processing operations at AGRANA sugar plants1

In gigajoules (GJ) per tonne of core and by-products

Specific consumption of non-renewable energy per tonne of core and by-products Specific consumption of renewable energy per tonne of core and by-products

1 See GRI reporting boundaries from page 7.

2 Percentage change based on average specific total energy consumption per tonne of core and by-products.

Water use and discharge in processing

The water required by a sugar factory is partly obtained from the beet itself. Sugar beet has a water content of roughly 75%, which must be separated from the sugar during the manufacturing process. This water is used both to leach the sugar out of the cossettes (the sliced beet) and to transport and clean the beet. The water is continually cleaned and returned to the process cycle.

Water use and discharge in processing at AGRANA sugar plants

(within the GRI reporting boundaries – see from page 7)

Sugar segment
m³ per tonne of
2015 16 2014 15 2013 14
core and by-products
Water consumption 1.98 2.10 2.28
Water discharge 3.12 3.13 2.82

The reduction of about 5.6% in average specific water consumption per tonne of product (core and byproducts) was attributable largely to more conscious water utilisation at the facilities in Kaposvár, Hungary, and Leopoldsdorf, Austria. The average specific amount of water discharge, by contrast, remained unchanged from the prior year. In-plant or municipal wastewater treatment plants at all sites ensure the environmentally responsible treatment of the effluent in compliance with local government requirements. When the cleaned wastewater is discharged into the receiving water, it thus meets the applicable environmental standards.

Waste from processing

The absolute amount of waste in the Sugar segment eased by about 1.8% from the prior year, while the average specific amount of waste per tonne of product (core and by-products) increased from 64 kg to 75 kg as a result of the lower product output in the year under review.

Waste from processing at AGRANA sugar plants

(within the GRI reporting boundaries – see from page 7)

Sugar segment
Tonnes, except percent
2015 16 2014 151 2013 141
Waste disposed
Of which
163,068 166,014 138,031
hazardous waste 170 258 116
Waste per tonne
of product 7.5% 6.4% 6.0%
Hazardous waste
per tonne of product 0.008% 0.010% 0.005%
Waste disposed,
by disposal method
Composting 962 506 902
Energy recovery 442 746 792
Reuse 91,460 89,485 69,326
Recycling 19,781 2,973 7,942
Landfill 50,418 72,303 59,002
Other 5 1 66

Average specific emissions (from direct and indirect energy use) from processing at AGRANA sugar plants2

In kg of CO2 equivalent per tonne of core and by-products

1 The values for 2013|14 and 2014|15 were revised to reflect the new definition of waste applicable since 2015|16 (see "Content boundaries of GRI reporting" from page 7).

2 See GRI reporting boundaries from page 7.

3 Percentage change based on average specific emissions (from direct and indirect energy use) per tonne of core and by-products.

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Biodiversity at former production site

Although biodiversity as an aspect of sustainability is at its most relevant in AGRANA's agricultural supply chain, the Group also works to protect local ecosystems and conserve biodiversity at its own production plants.

Thus AGRANA has repurposed the settling ponds on the grounds of its former sugar plant (closed in 2006) in Hohenau an der March, Austria, working together with the AURING conservationist club. Located in an area of high diversity value identified under the RAMSAR Convention on Wetlands1, the ponds now serve as a staging area for water birds, most notably waders.

Living accommodations for refugees

In August 2015 AGRANA decided to open up the same Hohenau property for a further socially valuable use. To help accommodate the continuing strong influx of asylum seekers from the Middle East, AGRANA, after some building alterations and with the consent of the local community, made the former administration building and part of the grounds available to house a total of 50 refugees, primarily families from Afghanistan, Iraq and Syria (also see page 41 in the "Sustainability" section).

Investment

In the Sugar segment, AGRANA invested € 46.1 million (prior year: € 34.5 million) in new assets and asset replacement during the 2015|16 financial year:

  • █ The expanded evaporator station in Leopoldsdorf, Austria, started operation at the beginning of the beet campaign
  • █ The upgraded and enlarged molasses desugaring plant in Tulln, Austria, came on-stream
  • █ Full commissioning of the packing lines at the new packaging centre in Kaposvár, Hungary

Group management report 26 Starch segment

Marketing relationship B2B

Products

General division into food, non-food and feed sectors; native and modified starches, saccharification products, alcohols/bioethanol, by-products (feedstuffs and fertilisers)

Raw materials processed

Corn (maize), wheat, potato

Key markets

Central and Eastern Europe, principally Austria and Germany; also specialty markets, e. g., in USA and UAE

Customers

Food sector: food industry; Non-food sector: paper, textile, construction chemicals, pharmaceutical, cosmetics and petroleum industries; Feed sector: feed industry

Special strengths

GM-free and strong organic focus

Revenue by core products in 2015|16

The Starch segment, through AGRANA Stärke GmbH, includes the three Austrian plants in Aschach (corn starch), Gmünd (potato starch) and Pischelsdorf (integrated wheat starch and bioethanol plants). The company also manages and coordinates the international starch and bioethanol holdings in Hungary and Romania. Since the beginning of the 2014|15 financial year, the consolidated financial statements use the equity method to account for the joint ventures of the HUNGRANA group (which make starch and saccharification products, bioethanol, and by-products).

Revenue and earnings

Starch segment 2015 16 2014 15 Change
% / pp
Total revenue €000 728,730 708,233 +2.9%
Inter-segment revenue €000 (7,164) (8,102) +11.6%
Revenue €000 721,566 700,131 +3.1%
EBITDA1 €000 64,884 49,005 +32.4%
Operating profit before
exceptional items and results of
equity-accounted joint ventures €000 42,846 27,038 +58.5%
Share of results of
equity-accounted joint ventures €000 22,981 27,093 –15.2%
Operating profit [EBIT]2 €000 65,827 54,131 +21.6%
EBIT margin % 9.1 7.7 +1.4 pp
Investment3 €000 28,151 13,743 +104.8%
Number of employees (FTE)4 870 848 +2.6%

In the Starch segment, revenue rose by 3.1% in the 2015|16 financial year. The principal reason was the significant increase in ethanol prices from the prior year, with the resulting higher ethanol revenue. Another upside factor was that more of the manufacturing capacity for starch products per se was used to make higher-margin modified products. In the year, the pursuit of the specialties strategy also brought significant revenue growth in infant formula and organic products, thanks both to volume gains and stronger sales prices. The lasting low sugar prices in Europe weighed also on selling prices of saccharification products, and revenue in this product category thus did not reach the prior-year level despite higher volumes. By-product revenue was down slightly from one year earlier as a result of low grain and soy prices.

The trajectory of raw material prices was once again volatile in 2015|16, affected particularly by weather conditions. While prolonged drought in the summer led to significant crop failures locally for autumn crops such as corn and potatoes, and thus to temporarily higher prices, savings in raw material costs were realised overall relative to the prior year. Energy costs too declined in the year under review, mostly for price reasons. Ultimately, next to the improved cost situation, it was mainly the already mentioned higher sales prices (of bioethanol) and greater sales volumes that drove an increase in profitability for the Starch segment.

  • 1 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.
  • 2 Operating profit (EBIT) is after exceptional items and results of equity-accounted joint ventures.
  • 3 Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill.

4 Average number of full-time equivalents in the reporting period.

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Under a project carried out at the Austrian plants, their whole value chain was optimised in the financial year. Through improvements to production processes as well as organisational changes aimed at strengthening the focus on customers, a further efficiency gain was achieved.

In 2015|16, revenue of the equity-accounted HUNGRANA group in Hungary grew marginally. Its higher revenue in bioethanol was contrasted by a decrease in saccharification product revenue. Despite the lower raw material and energy prices, the joint venture's bottom line result below the prior year's due to the reduced sales prices for saccharification products.

Market environment

The defining market factors for the Starch segment in the financial year under review were grain prices (which despite the drought events were stable or even showed a falling trend), the downward pressure in the sugar market, and the high ethanol prices in the European markets.

The strategic further development of AGRANA's starch product range and market portfolio towards greater specialisation is clearly visible in the expansion within higher-revenue, higher-margin starch derivatives. Likewise, organic starches and the product area of infant formula contributed to the Starch segment's positive business performance. The sales volume situation in starches for non-food applications (particularly for paper and corrugated board) is stable at a high absolute level. The addition of wheat starch to the portfolio has distinctly expanded AGRANA's market position in the European starch sector.

Even with significant regional impacts of the summer 2015 drought on the supply of grains and oilseeds, the internationally high harvest volumes of grains, protein crops and oilseeds created downside market pressure on by-product revenue.

Saccharification products

The isoglucose quota of the EU-28 in the 2015|16 sugar marketing year is 720,000 tonnes, of which HUNGRANA holds the largest share at 250,000 tonnes (amounts for this equity-accounted joint venture are stated at 100% of the total).

In saccharification products there were substantial price declines as a consequence of the fall in sugar quotations on the world market and the more aggressive competition for market share in the run-up to the liberalisation of the European market upon expiration of the EU sugar regime at the end of September 2017.

Bioethanol (including economic policy environment)

In spite of the dramatic slump in prices of crude oil, petrol and diesel, the markets for fuel ethanol held their own well in 2015|16. This resulted from a tight supply situation and insufficient import opportunities due to the euro weakness and tariff protection. In addition, the legislative fuel blending requirements ensured corresponding demand for ethanol despite the higher price.

After years of negotiations, the debate on the issue of indirect land use change (ILUC) for biofuels was brought to a close by an agreement in the European Parliament. The adopted 7% cap on first-generation biofuel content will create more stable business conditions for the period to 2020 than had prevailed recently. AGRANA benefits from the synergies in the production of food, feedstuffs and energy and in the cascading utilisation of raw materials. Thus, the co-product ActiProt®, a premium protein feed, reduces the requirement for soya imports from overseas. For bioethanol production, AGRANA uses only regional surplus feed grain that meets the European sustainability criteria.

Raw materials and production

World grain production in the 2015|16 grain marketing year (1 July to 30 June) is estimated by the International Grains Council1 at about 2 billion tonnes, which is slightly below the prior year but still above the expected consumption. Global wheat production is forecast at 732 million tonnes (prior year: 728 million tonnes), compared to expected use of 719 million tonnes. The world's corn production is projected at 969 million tonnes (prior year: 1,016 million tonnes), versus expected consumption of 971 million tonnes. In view of the good wheat harvest, global total grain stocks are forecast to increase by about 16 million tonnes from the prior year to 465 million tonnes.

Tracking the more favourable supply trend especially for wheat, the grain quotations eased in the course of the year (for wheat) or remained steady (corn). On 29 February 2016 on the NYSE Euronext Liffe commodity derivatives exchange in Paris, both corn and wheat quoted at about € 147 per tonne (prior year: € 148 per tonne for corn and € 185 for wheat).

Potatoes

In the 2015 campaign the Austrian starch plant in Gmünd, over a period of 104 days (prior year: 122 days), for weather reasons processed significantly less starch potatoes than in the previous year, despite unchanged contract volume. The average yield per hectare was approximately 26 tonnes (prior year: 40 tonnes) and the average starch content was 17.3% as in the prior year. The organic portion of this amounted to approximately 4% (prior year: about 3%), measured by input volume. For the 2016 campaign year (crop year), AGRANA plans

a starch potato contract volume at the prior-year level, which at average yields should translate into a higher processing volume. In potatoes for the food industry, the amount processed into long-life potato products was comparable to that of the prior year, with an organic share of about 26% (prior year: about 21%).

Corn and wheat

The total corn processing volume of the AGRANA starch plants in Austria and Romania in 2015|16 was down slightly year-on-year as a result of a weather-induced reduction in wet-corn processing. Within this total, the share of specialty corn processed (waxy corn, organic corn, and certified non-GMO corn) increased by about 31% from the year before.

At the wheat starch factory in Pischelsdorf, Austria, in 2015|16 the amount of raw materials used grew by 14% from the prior year, and for the first time, some of the wheat starch was made from certified organic wheat.

At the Pischelsdorf bioethanol plant, the processing of corn, wheat and triticale was somewhat below the prior-year level. Of the 2015 crop, about 50,700 tonnes of ethanol wheat and triticale were secured in advance through delivery contracts with growers. For the 2016 crop as well, cultivation contracts for ethanol grains were again offered.

In Hungary, at the equity-accounted joint venture HUNGRANA, total corn processing in 2015|16 increased moderately at an absolute level above 1 million tonnes (stated at 100% of the total). The wet-corn processing was completed at the end of November 2015 with a volume significantly less than in the previous year.

€ per tonne (NYSE Euronext Liffe commodity derivatives exchange in Paris)

29

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Sustainability in the Starch segment

Economic footprint1

€ 123.8 million of direct gross value added

€ 333.1 million of total gross value added

Each job at AGRANA creates up to 5 more jobs in other companies

Targets in the supply chain

2015|16: Introduction of SAI FSA for contract potato production in 2 countries

Environmental targets by 2020|21

Cumulative savings of 50 GWh through efficiency measures in plants

Value chain

www.agrana.com/en/ sustainability/ value-chain/starch

Engagement in the upstream value chain

In the 2015|16 financial year the Starch segment worked to implement the AGRANA principles for the procurement of agricultural raw materials and intermediate products, specifically for contract-grown potatoes in Austria and the Czech Republic. Upon benchmarking of the EU's cross compliance regulations2 and the legal requirements in the crop production countries of Austria and the Czech Republic to the standards of the Sustainable Agriculture Initiative (SAI), potato cultivation in both countries was awarded bronze status by the SAI. Delving deeper, the specific sustainability status of AGRANA's potato producers was assessed using the Farm Sustainability Assessment (FSA), a questionnaire-based self-evaluation by farmers under the SAI.

To determine this actual status, the FSA questionnaire was made available in spring 2015 on AGRANA's web-based corporate raw material information system for online completion by Austrian potato growers. About 15% of the potato suppliers participated in the voluntary self-assessment. Of these, more than 50% achieved gold status and the rest attained silver standing. Gold and silver ratings mean the participants are using additional sustainable management practices above and beyond adherence to EU and local legislation.

At the beginning of 2016, AGRANA carried out an internal verification process using stratified random sampling to assure that the questions were correctly understood and answered, and giving the farmers an opportunity to provide feedback on the content and process of the self-assessment. The resulting insights are being incorporated in the implementation of the 2016|17 self-assessment in the Czech Republic, the further refinement of the SAI system and of course the continual improvement of the individual farms' practices (also see from page 37 in the "Sustainability" section).

In the sourcing of raw materials for the production of wheat starch and bioethanol, AGRANA has been relying for years on inputs carrying the International Sustainability and Carbon Certification (ISCC) and REDcert EU certification.

BETAEXPO – Austria's largest demonstration field for AGRANA input crops

In June 2015, BETAEXPO, with Austria's largest field of demonstration plantings of AGRANA raw material crops, was held for the 15th year. Under the year's motto of "Sustainable Supply in Future", it again served to promote good agricultural practices, notably in the cultivation of AGRANA contract potatoes and grains.

Biodiversity in the upstream value chain

In the bat conservation project which was started in summer 2013 in Austria's Waldviertel district (see annual report 2014|15, page 64), population counts during 2015 demonstrated positive results, with increasing occupation of the installed bat roosts, especially by barbastelle bats, a species identified in the EU's Habitats Directive as particularly deserving of protection. An AGRANA potato grower especially active in bat conservation was recognised for his engagement with the 2015 AGRANA Sustainability Award.

For more information, see www.agrana.com/en/sustainability/profit/footprint 2 See annual report 2015|16 in the "Glossary" section.

1 Calculated based on the data for the 2014|15 financial year.

Energy use and emissions in processing

The average specific direct energy consumption per tonne of product (both core and by-products) in the Starch segment eased by about 2.2% in the 2015|16 reporting period compared to one year earlier. An important reason for this was the reduction in natural gas use in Pischelsdorf, Austria, as a greater proportion of district heating was used in the energy mix.

However, the average specific indirect energy consumption per tonne of product in the Starch segment rose by about 8.3% from the prior year, driven primarily by the change in energy mix in Pischelsdorf and by an increased average refining intensity at the site in Aschach, Austria.

On balance, the average specific emissions per tonne of product from direct and indirect energy consumption were thus reduced by about 5.6% year-on-year (see chart on page 29).

At the three Austrian starch manufacturing sites of Aschach, Gmünd and Pischelsdorf, an energy management system was introduced in autumn 2014 and certified under ISO 50001. Aiming for continual improvement, the Starch segment is targeting site-specific efficiency gains amounting to a cumulative reduction of 50 GWh of energy use by 2020|21 through efficiencyboosting projects in individual sections of the plants. In the 2015|16 financial year about 5 GWh of this reduction target was achieved through several projects, such as an improvement in the distillation plant in Pischelsdorf.

Water use and discharge in processing

At the AGRANA starch plants, true to the Group's environmental policy, water use and effluent are managed sustainably. Process water in the starch operations as well is repeatedly cleaned and reused in cycles. An example is the integrated bioethanol and wheat starch production complex in Pischelsdorf, Austria. Since the wheat starch plant began operation, the bioethanol plant generally does not require any external fresh water to be fed in, as its water needs for mashing are met with steam condensate and with slurry from the starch factory.

Water use and discharge in processing at AGRANA starch plants

(within the GRI reporting boundaries – see from page 7)

Starch segment 2015 16 2014 151 2013 14
m³ per tonne of
core and by-products
Water consumption 3.83 4.34 4.56
Water discharge 4.35 4.92 4.64

The average specific water consumption in the Starch segment per tonne of product (core and by-products) in the 2015|16 financial year was approximately 11.7% less than one year earlier, attributable mainly to the installation of a system for water recovery from starch slurry in Pischelsdorf, Austria. The reduction of about 11.6% in average specific water discharge resulted from factors including the lower amounts of precipitation and the short campaign duration in Gmünd, Austria.

Average specific direct energy consumption in processing operations at AGRANA starch plants2

In gigajoules (GJ) per tonne of core and by-products

1 2014|15 data have been revised to correct an error in the 2014|15 data collection.

2 See GRI reporting boundaries from page 7.

3 Percentage change based on average specific total energy consumption per tonne of core and by-products.

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Waste from processing

The specific amount of waste from processing per tonne of product (core and by-products) was 22.3% higher in 2015|16 than the year before. The change is explained primarily by the larger amount of sewage sludge generated.

Waste from processing at AGRANA starch plants

(within the GRI reporting boundaries – see from page 7)

Starch segment
Tonnes, except percent
2015 16 2014 15 2013 14
Waste disposed
Of which
17,665 14,351 13,098
hazardous waste 21 28 68
Waste per tonne
of product
1.6% 1.3% 1.3%
Hazardous waste
per tonne of product
0.002% 0.003% 0.007%

Waste disposed,

by disposal method

13,030 10,337 8,462
1,490 1,120 1,609
700 0 207
377 638 950
4 0 0
2,064 2,256 1,870

In autumn 2015 AGRANA Stärke GmbH updated its sustainability data for the purposes of the EcoVadis supplier evaluation platform. AGRANA Stärke GmbH moved up from silver status in 2014 to a rating of gold, putting it in the top 5% of performers scored by EcoVadis.

Investment

€ 28.2 million (prior year: € 13.7 million) was invested in the Starch segment during the 2015|16 financial year:

  • █ Plant expansion project in Aschach, Austria: Negotiations with authorities were completed, detailed planning is in progress, clearing of construction site has begun
  • █ At the facility in Gmünd, Austria, a dry mixing plant for infant formula was built
  • █ Alterations were performed in the extruder plant in Gmünd for the production of thermoplastic starch
  • █ A project to increase capacity and reap energy savings was implemented in Pischelsdorf, Austria, by commissioning a new heat exchanger

Additionally, € 16.8 million (prior year: € 11.6 million) was invested in 2015|16 in the HUNGRANA companies (amounts for these equity-accounted joint ventures are stated at 100% of the total).

Average specific emissions (from direct and indirect energy use) from processing at AGRANA starch plants1

In kg of CO2 equivalent per tonne of core and by-products

1 See GRI reporting boundaries from page 7. 2 Percentage change based on average specific emissions (from direct and indirect energy use)

per tonne of core and by-products.

Group management report 32 Fruit segment

Basics of the Fruit segment

Marketing relationship B2B

Products

Fruit preparations, fruit juice concentrates, not-fromconcentrate juices, fruit wines, natural flavours and beverage bases

Raw materials processed

Fruits (leading raw material for fruit preparations: strawberry; raw materials for fruit juice concentrates: apples and berries)

Key markets

Marketed worldwide

Customers

Dairy, ice-cream, bakery, food service and beverage industries

Special strengths

Custom-designed, innovative products

Fruit preparations (dairy and non-dairy) Fruit juice concentrates Other juice core products (NFC, fruit wine, etc.) Other (fruit reselling, frozen fruits, etc.) 73% 16% 3% 8% Revenue by product group in 2015|16

AGRANA Internationale Verwaltungs- und Asset-Management GmbH, Vienna, is the holding company for the Fruit segment. The coordination and operational management of the fruit preparations activities are provided by the holding company AGRANA Fruit S.A.S., based in Mitry-Mory, France. For the fruit juice concentrate business, the operating holding company is AUSTRIA JUICE GmbH, based in Kröllendorf/Allhartsberg, Austria. At the balance sheet date the Fruit segment as a whole operated 24 production sites in 19 countries for fruit preparations, and 14 plants in seven countries for the production of apple and berry juice concentrates.

Revenue and earnings

Fruit segment 2015 16 2014 15 Change
% / pp
Total revenue €000 1,084,085 1,062,510 +2.0%
Inter-segment revenue €000 (648) (267) –142.7%
Revenue €000 1,083,437 1,062,243 +2.0%
EBITDA1 €000 101,676 103,556 –1.8%
Operating profit before
exceptional items and results of
equity-accounted joint ventures €000 61,876 65,280 –5.2%
Exceptional items €000 (3,054) (6,672) +54.2%
Operating profit [EBIT]2 €000 58,822 58,608 +0.4%
EBIT margin % 5.4 5.5 –0.1 pp
Investment3 €000 41,730 42,990 –2.9%
Number of employees (FTE)4 5,455 5,405 +0.9%

Revenue in the fruit preparations division grew by about 8% as a result of higher sales prices that were amplified by favourable currency effects (largely from the US dollar, Chinese yuan, Korean won and Egyptian pound) and of a sales volume increase of approximately 4%. Geographically, the revenue growth was driven mainly by North America and Asia/Australia, while sales quantities were up in all AGRANA regions except North America.

In a noteworthy accomplishment, in the EU – the most important region in revenue terms – AGRANA succeeded in selling higher volumes despite the market contraction. A good product portfolio mix helped to grow revenue especially in France. Sales quantities in North America were in line with the prior year, but volumes in the ice-cream segment were expanded. The popularity of Greek yoghurt continues to offer good growth opportunities. In the Eastern Europe region the picture was heterogeneous: While sales volumes in Russia increased, those in Ukraine were down from a year ago. In Latin America more fruit preparations were sold than last year; the biggest driver here was Mexico, while the economic situation in Brazil detracted from the sales trend.

Analysed by customer segment, the dairy industry was one of several sectors responsible for revenue and volume growth. The diversification into more fruit preparations for the food service, bakery and ice-cream industries also continued to be a focus and volumes and revenue in these segments rose.

  • 2 Operating profit (EBIT) is after exceptional items and results of equity-accounted joint ventures.
  • 3 Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill.

4 Average number of full-time equivalents in the reporting period.

1 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.

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Operating profit (EBIT) in the fruit preparations business followed a significantly positive trend in all regions. The net exceptional items expense of € 3.1 million was related primarily to the restructuring project of Dirafrost FFI N.V., Herk-de-Stad, Belgium; however, most of the associated one-time costs had already been recognised in the 2014|15 consolidated financial statements. Some of Dirafrost's activities in Belgium were discontinued and moved elsewhere; a major goal of the project was to improve efficiency in the production of frozen fruit and convenience products. In 2014|15 the costs of closing the fruit preparations plant in Kröllendorf/Allhartsberg, Austria, and moving its production operations to Gleisdorf, Austria, were the primary factor behind the negative difference of € 6.7 million in EBIT.

Revenue in the fruit juice concentrate activities was down significantly in 2015|16. This was caused by the price erosion for apple juice concentrates from the 2014 crop and, to a lesser extent, by lower sales quantities. AUSTRIA JUICE operates globally, centred on the EU as the core market. Other major geographic markets are North America, Russia, the Middle East and Far East. The apple juice concentrate made at the Chinese plant is shipped largely to Japan, the USA, Russia and Australia, as well as Europe.

Prices for fruit juice concentrates were volatile in the year under review, with a strong falling trend on balance for product from the 2014 crop, particularly for apple. In the 2015 campaign AUSTRIA JUICE saw a stabilisation both in raw material prices and the prices of its products. This was also true for berry juice concentrates.

The integration of AGRANA Juice and Ybbstaler into AUSTRIA JUICE progressed as planned and was brought to completion by the merger of the two Polish companies and the establishment of a profit centre for the fruit wine business at the site in Bingen, Germany.

Market environment

In the fruit preparations business, while demand in the EU continues to ease gently, there is solid growth in the non-European markets. The rate of world market growth in retail sales volumes of drinkable yoghurts and fruit yoghurts in the 2015 calendar year was an average of about 4% (source: Euromonitor), although

consumption decreased in Europe, Eastern Europe (Ukraine and Russia) and Asia-Pacific. As well, macroeconomic and political problems are holding back market development in the Middle East and Argentina. Nonetheless, in all regions except North America, AGRANA achieved year-on-year sales volume growth.

The main trends in focus in 2015|16 were health, naturalness, pleasure and convenience. Consumers are looking for new flavour varieties and particularly appreciate products with natural ingredients and a high fruit content. Also in demand are products that offer a natural energy boost and imply a healthy lifestyle. The "Greek trend" too remains a prime mover of the yoghurt market, thanks particularly to the category's versatility regarding target group, varieties and time of day of consumption. Running counter to the health trend, other customers are also seeking out so-called brown flavours (chocolate, caramel, nougat) as a component of their desserts. Here the primary motive is pleasure.

In the concentrate business, the trend towards fruit juice beverages with low juice content continues unbroken. For beverages high in fruit juice, consumption in Western Europe remains on a mild easing trend, but stabilised in Germany, the most important market for apple juice concentrate. Prices for fruit juice concentrates recovered in autumn 2015 in spite of very good crop forecasts for 2015 and trade policy impacts on raw material markets (Ukraine and Russia) and their price structure.

Raw materials and production

For macroeconomic and weather reasons, raw material procurement in the 2015|16 financial year was marked by unusually high volatility and in some cases critical supply situations.

After good harvests at the beginning of the 2015 calendar year and resulting good supply conditions and moderate raw material prices, the unusually hot summer led to supply bottlenecks and price increases for berries and stone fruits, with impacts on AGRANA's portfolio of fruit raw materials.

Sustainability in the Fruit segment

Economic footprint1

€ 284.3 million of direct gross value added

€ 860.2 million of total gross value added

Each job at AGRANA creates up to 3 more jobs in other companies

Targets in the supply chain

2015|16: Determine the sustainability of fruit suppliers based on specified international certifications

Environmental targets by 2020|21 Fruit preparations: Direct and indirect energy consumption of 1.72 GJ per tonne of product

Fruit juice

concentrates: Direct and indirect energy consumption of 3.43 GJ per tonne of product

Water consumption of 4.21 m³ per tonne of product

Value chain

www.agrana.com/en/ sustainability/ value-chain/fruit

The exchange rate movement between the euro and the US dollar raised the cost of tropical fruits and of non-fruit ingredients sourced worldwide, such as pectin.

Currency risks in purchasing that could be neutralised only by local raw material management also existed in countries with high inflation, including in Russia, Ukraine and Latin America.

In the fruit juice concentrates division, available supplies of apples in the foremost European processing regions (Poland and Hungary) were lower than in the year before. The dry spring and summer months led to considerable increases in raw material prices at the beginning of the apple processing season and lasting until into November. Towards the end of the financial year, however, raw material prices resumed a downward trend. The capacity utilisation of the European fruit juice concentrate plants in the 2015 campaign was average. In China the production season by and large unfolded as planned, in line with the prior year.

The berry processing season was on the whole marked by good available volumes of the principal fruits. The prices for the most important raw materials (strawberry, sour cherry and black currant, though not raspberry) were higher than in the previous year.

Engagement in the upstream value chain

In the 2015|16 financial year the Fruit segment as well worked on the implementation of the AGRANA principles for the procurement of agricultural raw materials and intermediate products.

A goal of the fruit preparations business and its Vienna-based purchasing organisation, AGRANA Fruit Services GmbH (AFS), for the 2015|16 financial year was to document the certification status of its suppliers of fruits and intermediate products to defined sustainability standards. In the year under review, 12.4% of the raw materials procured by AFS had a sustainability certification; most of these were certified organic or under the Rainforest Alliance (RFA) and another customer standard of industry-wide relevance. However, these standards have not yet been benchmarked to those of the Sustainable Agriculture Initiative's Farm Sustainability Assessment; the raw material sourcing in the fruit preparations division can thus not yet be mapped to a Group-wide reference framework. Additionally, on customer request, AFS has the capability to procure approximately a further 13.6% of raw materials in certified sustainable form. As all procurement in the fruit preparations division is done to customer specifications, the future trend in the amount of certified raw material volumes will depend on these customer requirements.

In the sourcing from contract growers in Mexico and Fiji, the fruit preparations business continued the successful work to raise social and environmental standards in the supply chain.

A project running since August 2013 (with support from an Austrian government programme for development assistance) for the certification of strawberry and blackberry suppliers in Jacona, Michoacán, Mexico, to the Rainforest Alliance standard was continued in the 2015|16 financial year. The certified strawberry cultivation area was expanded by about 72% and new areas were certified for soursop (a tropical fruit also known as graviola or guanabana) and raspberry. At the annual RFA awards in Mexico, AGRANA together with its fruit suppliers won recognition for its training and advisory measures as the company with the best performance in the first certification audit. "Aneberries", the Mexican berry exporters association, presented the AGRANA project at its annual conference as an example of best practice.

1 Calculated based on the data for the 2014|15 financial year. For more information, see www.agrana.com/en/sustainability/profit/footprint

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Building on the success in Mexico, AGRANA launched a further, subsidised project at the end of 2014 in Fiji. In this South Pacific island nation, AGRANA is supporting small farmers in the group certification of bananas (typically grown on collectively owned land) under the internationally recognised Australian Certified Organic standard (ACO). In 2015, to support the village communities and the development of the banana farmers, AGRANA together with a local NGO, Partner in Community Development Fiji (PCDF), started a two-year training programme in environmentally friendly farming. Practicing agroforestry1, the 130 participating farmers from seven villages harvest bananas and deliver them to collection points, from where the fruit is transported to AGRANA's plant for processing. The farmers sell part of the crop on the local market to generate additional income with this domestically grown produce. At the end of the 2015|16 financial year, an additional building with a new production line for the manufacturing of purees to the high European and American standards of quality and product safety was completed on the AGRANA plant property. Besides the year-round production of organic banana purees, AGRANA also plans to make purees seasonally from wild-harvest mangoes and guavas. In February 2016, tropical cyclone Winston raged over the Fiji Islands. Although the AGRANA processing facilities were largely spared, the supply of raw materials in the first half of 2016 will be reduced and there may be some delay in achieving the target of including a further 300 farmers.

The fruit juice concentrates division, as a result of its procurement structures, is confronted with an especially significant challenge in supply chain management, as most of the raw materials it processes are sourced from dealers. This is a consequence of legacy structures evolved nationally over time which are focused primarily on the fresh market and retail trade and fruit exports. Fundamentally, the Group would like to purchase more raw materials directly from farmers in the future.

AUSTRIA JUICE currently maintains two projects for direct procurement from growers. In Hungary, since the year 2000, AUSTRIA JUICE has supported local farmers in growing pest-resistant apple varieties that require about 60% to 80% less pesticide than conventional cultivars. Next to financial assistance for the new planting of the trees and ongoing advice over the growing season, the fruit growers also receive purchasing guarantees and a price premium from AUSTRIA JUICE. A further project with contract growers was begun in Poland in 2007. In 2015|16 about 8% of all apples processed by AUSTRIA JUICE into apple juice concentrate worldwide came from these two projects.

In the fruit juice concentrate division, the introduction of the Sustainable Agriculture Initiative's Farm Sustainability Assessment that is already in use in the Sugar and Starch segments will begin in the 2016|17 financial year.

Average specific direct energy consumption in processing operations at AGRANA fruit plants2

In gigajoules (GJ) per tonne of core and by-products

Specific consumption of non-renewable energy per tonne of core and by-products Specific consumption of renewable energy per tonne of core and by-products

1 See annual report 2015|16 in the "Glossary" section.

2 See GRI reporting boundaries from page 7.

3 Percentage change based on average specific total energy consumption per tonne of core and by-products.

Energy use and emissions in processing

The reported average specific direct energy consumption per tonne of product (both core and by-products) in the Fruit segment declined by about 3.8% in 2015|16 compared to the prior year (see chart on page 33). This resulted above all from the reduction in the natural gas share of the energy mix in the fruit juice concentrate operations in favour of greater use of steam and electricity. The average specific indirect energy consumption in the Fruit segment remained almost constant at the year-earlier level. Average specific emissions fromdirect and indirect energy use per tonne of product in the Fruit segment therefore decreased by about 3.1% from the prior year, in step with the lower energy consumption.

Water use and discharge in processing

The decrease of about 2.9% year-on-year in average specific water consumption, and of about 5.5% in water discharge, per tonne of product (core and by-products) in the Fruit segment was driven primarily by the installation of treatment systems for the reuse of the water in the process cycle in the fruit juice concentrate activities.

Water use and discharge in processing at AGRANA fruit plants

(within the GRI reporting boundaries – see from page 7)

Fruit segment 2015 16 2014 15 2013 14
m³ per tonne of
core and by-products
Water consumption 4.04 4.16 3.89
Water discharge 3.77 3.99 3.91

Waste from processing

In 2015|16 the specific amount of waste per tonne of product (core and by-products) in the Fruit segment, at 54 kg, was in line with the average of the prior two financial years.

Waste from processing in AGRANA fruit plants

(within the GRI reporting boundaries – see from page 7)

Fruit segment
Tonnes, except percent
2015 16 2014 151 2013 141
Waste disposed
Of which
46,617 45,699 37,227
hazardous waste 37 15 206
Waste per tonne
of product
5.4% 5.6% 5.3%
Hazardous waste
per tonne of product
0.004% 0.002% 0.029%

Waste disposed,

by disposal method
Composting 4,064 3,359 6,243
Energy recovery 392 341 686
Reuse 17,767 19,986 12,558
Recycling 14,895 14,082 8,971
Landfill 9,804 7,817 5,506
Other 126 113 3,263

Average specific emissions (from direct and indirect energy use) from processing at AGRANA fruit plants2

In kg of CO2 equivalent per tonne of core and by-products

1 The values for 2013|14 and 2014|15 were revised to reflect the new definition of waste applicable since 2015|16 (see "Content boundaries of GRI reporting" from page 7).

2 See GRI reporting boundaries from page 7.

3 Percentage change based on average specific emissions (from direct and indirect energy use) per tonne of core and by-products.

37

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Investment

The capital expenditure of € 41.7 million in the Fruit segment (prior year: € 43.0 million) represented both capacity expansion projects and maintenance investment:

  • █ Installation of another IQF1 freezer tunnel in Mexico
  • █ Completion of the expansion and upgrading of the container cleaning plant at AGRANA Fruit in Australia
  • █ Successful SAP rollout at AGRANA Fruit in Brazil
  • █ New production line for bananas in Fiji

Sustainability Group management report 38

Sustainability at AGRANA

Economic footprint1

€ 510.6 million of direct gross value added

€ 1.5 billion of total gross value added

Approx. 8,700 jobs at AGRANA created 31,000 more jobs in other companies

Targets in the supply chain

2015|16: Introduction of SAI's FSA for contract beet and potato production

Segment-specific environmental targets by 2020|21

Reductions of direct and indirect energy consumption per tonne of product

Reductions of water consumption per tonne of product

Value chain

www.agrana.com/en/ sustainability/ value-chain

AGRANA's understanding of sustainability

AGRANA as an industrial processor of agricultural raw materials defines sustainability in its business activities as a harmonious balance of economic, environmental and social responsibility. This understanding of sustainability is summed up by three sustainability principles, which serve management and all employees as a practical and intuitive guide to daily sustainable action:

At AGRANA we:

  • █ Utilise almost 100% of the agricultural raw materials employed and use low-emission technologies to minimise impacts on the environment
  • █ Respect all our stakeholders and the communities where we operate
  • █ Engage in long-term partnerships with suppliers and customers

AGRANA's sustainability activities in 2015|16

The activities concerning sustainability are grouped into the following issues along the value chain:

  • █ Environmental and social criteria in the procurement of agricultural raw materials and intermediate products
  • █ Environmental and energy aspects of AGRANA's production
  • █ Working conditions and human rights in respect of AGRANA employees
  • █ Product responsibility and sustainable products
  • █ Compliance and business conduct
  • █ Social engagement

In the 2015|16 financial year as in the previous years, AGRANA did intensive work on the further integration of sustainability aspects into operational business processes. Important steps in this regard included, for instance, the implementation of AGRANA's principles for the procurement of agricultural raw materials and intermediate products, and the continuing execution of the Group's energy strategy. AGRANA also maintained the ongoing dialogue with its stakeholders and was again active in various sustainability-related industry initiatives.

Economic footprint of the AGRANA Group

In the sustainability realm, for AGRANA as an energy-intensive industrial company, the ecological aspect of its business operations has been a focus for many years. Besides this, the Group also considered working conditions (both internally and in the supply chain) and compliance aspects. Additionally, in the 2015|16 financial year the Group's contributions to the economy in terms of value added and employment were studied more closely for the first time.

Methodology

Based on the business data for 2014|15, when AGRANA's Sugar, Starch and Fruit segments generated revenue of about € 2.5 billion in 25 countries with approximately 8,700 employees worldwide, the Economica Institute of Economic Research calculated the gross value-added impacts and employment effects emanating from AGRANA's activities.

The study methodology is based on an input-output analysis. Using a worldwide input-output table in which AGRANA was individually modelled in the form of a satellite account, the input-output model describes the delivery and procurement relationships which link AGRANA to all production sectors of an economy, portrays the company's contribution of value added to the economy and shows the flows of individual goods (inputs) into and through AGRANA's production into its outputs and their uses. This makes it possible to quantify not only the direct impact of the Group's business activities on the macroeconomy but also their multiplier effect.

1 Calculated based on the data for the 2014|15 financial year. For more information, see www.agrana.com/en/sustainability/profit/footprint

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AGRANA's total gross value-added contribution: 0.002% of world GDP

The results of the study bear out the international significance of the AGRANA Group, demonstrating a macroeconomically relevant direct effect of 0.0007% and a total impact of 0.002% of global gross domestic product (GDP).

The direct gross value-added effect of the AGRANA Group's ongoing operations (as distinct from investment effects, discussed below) in the 2014|15 financial year was € 510.6 million. The total gross value-added contribution1 of the AGRANA Group, which consists of direct1, indirect1 and induced1 effects, was almost € 1.5 billion. This is approximately equivalent to the value added generated by all Austrian pharmaceutical manufacturing, or all legal advice provided in Austria. Put another way, the amount of almost € 1.5 billion represents about 0.5% of Austrian GDP. At € 860.2 million or 58% of the Group's gross value added, the largest contribution was made by the Fruit segment, followed by Starch at € 333.1 million and Sugar at € 292.0 million. Likewise, the greatest macroeconomic leverage expressed in a multiplier1 is exerted by the Fruit segment: Its multiplier of 3.03 means that for every euro of gross value added generated in the Fruit segment of the AGRANA Group, two additional euros of value added were created in other companies worldwide.

In terms of geographic distribution, the EU-28 countries accounted for 77.1% of gross value added, ahead of North America at 8.2% and the rest of Europe at 5.7% (see annual report 2015|16 in the map of AGRANA sites on pages 28–29).

Each job at AGRANA created up to five more worldwide

All told, the ongoing operations of the AGRANA Group in 2014|15 were the basis for close to 40,000 jobs around the world: Tied to the 8,708 direct jobs in the AGRANA Group were about 31,000 other positions worldwide, including 29,103 in agriculture as a highly employmentintensive industry. This resulted in the above-average employment multipliers (which are therefore not comparable with other industries) of 5.81 in the Starch segment, 5.52 in the Sugar segment and 3.95 in the Fruit segment.

Somewhat more than one-half of the aggregate effect of 39,678 jobs was attributable to the Fruit segment, with 21,827 jobs or 55% of the total, while Sugar was responsible for 12,834 positions (32.3%) and Starch, for 5,017 jobs (12.6%). Of these jobs, 65.9% were in the 28 EU member countries – the European Union's relatively higher 77.1% share of gross value added reflected the

higher productivity in the EU. In terms of employment effects, Asia followed at 2,248 or 5.7% of jobs, and North America was third at 2,024 positions or 5.1% (see annual report 2015|16 in the map of AGRANA sites on pages 28–29).

Investment by AGRANA added a further 4,622 jobs

Besides the impacts of ongoing operations, AGRANA's capital expenditures gave rise to one-time additional, gross value-added effects. Globally, the total capital expenditures of the prior, 2014|15 financial year of just about € 91 million resulted in a total value-added effect of € 171.5 million. The associated employment impact amounted to a total of 4,622 person-years2. The largest portion of these investment effects occurred in the EU, with gross value added of € 124.3 million (72.5% of the global total) and with 2,260 supported jobs in the EU economy (48.9%).

Environmental and social criteria in sourcing

The work in 2015|16 on environmentally and socially responsible sourcing focused on the further implementation of the AGRANA principles for the procurement of agricultural raw materials and intermediate products. Of particular note are the efforts of the Sugar and Starch segments devoted to introducing the Farm Sustainability Assessment (FSA) of the Sustainable Agriculture Initiative (SAI), as well as the BETAEXPO agricultural fair held by AGRANA for the past 15 years.

Sustainable Agriculture Initiative

Sustainability activities around the procurement of raw materials from agricultural producers have long been integral to AGRANA's business operations. To work on sustainability aspects in an even more structured way, AGRANA Beteiligungs-AG has been an active member of the Sustainable Agriculture Initiative (SAI) Platform since July 2014 and, with its Sugar, Starch and Fruit segments, participates in all working groups and committees relevant to its raw materials.

Benchmarking of the legal environment

In a first step in the 2015|16 financial year, under the SAI benchmarking process, the legal requirements of the EU and of the beet- and potato-growing countries where AGRANA procures these crops were benchmarked against the requirements of the SAI. The SAI awarded bronze status for the procurement of raw materials from Austria, Romania, Slovakia, Czech Republic and Hungary.

2 Full-time equivalent jobs for one year.

In spring 2015, to facilitate farmers' use of the SAI's Farm Sustainability Assessment (a self-evaluation by the farmers), the FSA questionnaire was made available on AGRANA's web-based raw material information system to sugar beet contract growers in Austria, the Czech Republic and Slovakia. Throughout Austria this was also done for potato growers, while the self-assessment data for Romania and Hungary were at this first stage collected using a paper form.

Preliminary results of the voluntary supplier self-assessment

In total in the five countries where beets and potatoes are grown for AGRANA, 838 completed FSA questionnaires were analysed in the period from May to December; in 2015 AGRANA thus conducted the largest SAI survey yet by any company. The response rates ranged from 7% to 34% depending on the country.

The results were highly gratifying: Nationally in Austria, Hungary and the Czech Republic, 50% or more of the growers achieved gold status and the others reached silver standing. Both in Slovakia and Romania, the share of farms at a gold level of performance was about onethird, while the other growers attained silver status. Gold and silver ratings mean that the participants are using additional sustainable management practices above and beyond adherence to EU and national legislation.

For the Austrian farmers, an internal verification process for these self-assessments has already been developed and the auditing of the disclosures in the FSA questionnaires began in early 2016. This is to ensure that the questions were correctly understood and answered, and gives farmers an opportunity to provide feedback on the content and process of the self-assessment. The resulting insights are then used both for refining the SAI system and in the continual improvement of the individual farms.

BETAEXPO – Austria's largest demonstration field for AGRANA raw material crops

The BETAEXPO in June 2015, under the motto of "Sustainable Supply in Future" and in its 15th year, again served to disseminate good agricultural practices, notably to current and prospective AGRANA contract farmers. On the approximately 700 demonstration plots of the twelve-hectare BETAEXPO grounds located next to the sugar factory in Tulln, Austria, about 3,500 visitors were

able to view actual plantings of the AGRANA contract crops – sugar beet, potato and grains – and innovations like the AGRANA catch-crop mix that won recognition under the 2014 Raiffeisen Climate Protection Challenge.

Given the growing importance which sustainable agricultural practice in AGRANA's supply chain has for customers' purchasing decisions, AGRANA invited its customers in downstream industries to visit this anniversary edition of BETAEXPO. Customers thus for the first time had the opportunity to gain a first-hand impression of the sustainability measures implemented by AGRANA and its contract growers. In a panel discussion, high-profile customers in the beverage and food industry presented their own sustainability strategies and expectations for their suppliers.

On the day before BETAEXPO, the first annual "AGRANA Sustainability Award" was presented to selected contract farmers with especially sustainable farming practices in the categories of sugar beet, organic sugar beet, potato and corn, in an effort to reinforce all suppliers' awareness of the importance of sustainable management along the entire value chain. For the 2016|17 financial year the target group for the award is to be expanded to include corporate suppliers, such as dealers and service providers.

Objectives for environmentally and socially responsible procurement

In its Sugar and Starch segments, AGRANA's goal for the 2016|17 financial year is to continue the rollout of the SAI farm self-assessment (FSA) for environmental and social sustainability criteria together with its contract suppliers of sugar beet and potatoes in all countries of cultivation covered by the Group's tracking system, and thus to increase the number of farms participating in the FSA. The fruit juice concentrate division of the Fruit segment will also bring the SAI's FSA into play in its direct purchasing of crops from growers. At the same time, work on verification systems continues both internally and as a member of the SAI.

As one of its activities to support biodiversity in the supply chain in 2016|17, and consistent with the Group's natural affinity for honey-bee conservation, AGRANA plans to place ten beehives at each of its Austrian production sites and at the Group's headquarters in Vienna. These will be regularly tended by a beekeeper and are expected to yield about 200 kilograms of honey per site.

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Environmental and energy aspects of production

Responsibility for the ecological and energy dimensions of its production operations has always been practiced by AGRANA, and in 2014|15 it was formalised in an AGRANA environmental policy that applies worldwide and to all business segments. The policy contains AGRANA's management approach concerning energy consumption, emissions, water use, wastewater, and waste.

Implementing this environmental policy, the introduction of energy management systems continued in 2015|16. By May 2016, the energy management systems of all outstanding European AGRANA production sites of the Sugar segment and fruit juice concentrate division were certified to ISO 50001.

Objectives regarding environmental and energy aspects of AGRANA's production operations

In the prior, 2014|15 financial year, the AGRANA segments of Sugar, Starch and Fruit formulated relevant energy and environmental objectives for their business activities up to the 2020|21 financial year. The progress towards goals to date is presented in the respective segment reports.

Working conditions and human rights in respect of AGRANA employees

The areas of focus in 2015|16 regarding working conditions and human rights in relation to AGRANA employees are discussed in the section "AGRANA's people" (see from page 45).

Product responsibility and sustainable products

As AGRANA manufactures mainly intermediate products for the food industry, food safety and food defense are critical aspects of product responsibility and sustainability. In addition to complying with national laws and regulations, AGRANA has therefore implemented globally recognised standards of food safety under which it is externally certified, such as FSSC (Food Safety System Certification), ISO 22000, and IFS (International Featured Standards). Every production site is certified to at least one relevant standard.

Organic products

AGRANA holds the necessary certifications in its plants and supply chain to be able to fill customer orders for goods produced by organic methods. In 2015|16 the Sugar segment, at customers' request, expanded its portfolio of certified organic products for the downstream food industry by refining organic raw sugar sourced from Brazil. The Starch segment for the first time was able to supply certified organic wheat starch, from the plant in Pischelsdorf, Austria.

As significant volume of demand for organics is limited mostly to Austria, Germany and the USA, the organic portion of AGRANA's total sales quantities is a percentage in the single digits.

SEDEX membership and SMETA audits

Since 2009, AGRANA Beteiligungs-AG is a member of the Supplier Ethical Exchange Database (SEDEX). All AGRANA production sites perform an annual SEDEX self-assessment. Underlining AGRANA's commitment to ethical trading, about half of the Group's production sites within the GRI reporting boundaries have already had so-called "4-Pillar SEDEX Members Ethical Trade Audits" (SMETA) conducted by independent third parties to verify the self-assessments. The audit reports on the AGRANA plants are available to SEDEX members on the organisation's online platform.

Global customer satisfaction survey

In the 2014|15 financial year AGRANA had launched a satisfaction survey of the customers of European AGRANA organisations. As planned, this survey was fully extended in 2015|16 to cover all other AGRANA companies worldwide. Overall in the two stages of the survey, a total of almost 2,500 customers were contacted by e-mail and asked to complete an online questionnaire made available in 13 languages, including Turkish, Chinese, Russian and Portuguese. Its 20 questions addressed overall satisfaction, product range, deliveries, customer care and complaint management.

The response rate varied by region and averaged 33%, which is considered excellent and indicates the high level of customer loyalty. The analysis of the results was based on 814 questionnaires. It was found that respondents took an average of 13 minutes to provide their answers, which is rated by external experts as

exceptionally long and therefore positive. In the case of open questions (such as "What else would you like to tell us?"), the opportunity was used to offer praise and, in some cases, also critical remarks.

The findings of the survey were presented to the individual sales organisations in workshops and specific action plans were developed together to optimise customer relationships. While most customer responses were very positive, there were also subject areas with room for improvement. These varied by region and were related partly to individual activities for the specific customers and partly to points such as improving the accessibility of staff in inside and outside sales, enhancing the provision of documents to customers, and the broad issue-set of sustainability.

Thus, internal training events on sustainable operations were held for sales staff to familiarise them with all aspects of AGRANA's sustainability activities. Digital and analogue documents are to support sales representatives in conveying to their customers not only the quality, service and price aspects of AGRANA's offering but also its sustainability engagement. The global survey is to be repeated in 2016|17 in order to measure and evaluate progress.

Trade show exhibits

To present the company, deepen relationships with existing customers and win new ones, the AGRANA business segments jointly and individually exhibited at numerous trade shows in 2015|16, including food fairs, such as Biofach (in Nuremberg, Germany), ANUGA (Cologne, Germany), Gulfood Manufacturing (Dubai, United Arab Emirates), and FI Europe (Paris, France). The wide range of animal feedstuffs was presented at the agricultural trade shows, among them the Rieder Messe fair (Ried im Innkreis, Austria) and Inter-Agrar (Wieselburg, Austria). The Starch segment exhibited at the international "in-cosmetics" series of trade fairs (Barcelona, Spain, São Paulo, Brazil, and Bangkok, Thailand), at SCS Formulate (Coventry, United Kingdom) and at technology exhibitions like the European Coatings Show (Nuremberg, Germany). Individual AGRANA sites also had a presence at regional shows.

For the 2016|17 financial year, AGRANA will also participate for the first time in trade fairs in the promising new markets of Algeria (Djaz AGRO in Algiers) and Iran (Iran Food + Hospitality in Tehran) and, in another first, will exhibit in the USA (NYSCC Suppliers Day in New Jersey).

Initiative Member companies
from AGRANA Group
Since Initiative aim and other members
Sustainable Agriculture
Initiative (SAI)
AGRANA Beteiligungs-AG1 July 2014 Aim: Develop guidelines for and implement
sustainable agriculture practices;
Members: Food and beverage industry
SEDEX AGRANA Beteiligungs-AG1 2009 Aim: Promote sustainable social and
environmental practices along the value chain;
Members: About 36,000 companies worldwide
EcoVadis AGRANA Zucker GmbH
AGRANA Stärke GmbH
Fruit segment:
some companies
2013 Aim: Supplier assessment on environmental
and social criteria along their entire value chain;
Members: about 100 large global companies
in a wide range of industries
Bonsucro AGRANA Zucker GmbH July 2014 Aim: Improve the sustainability of sugar
cane production and of sugar manufacturing
from cane;
Members: Producers, resellers, processors
ARGE Gentechnik-frei
(Platform GMO-Free)
AGRANA Beteiligungs-AG1 2010 Aim: Promote and safeguard Austrian
GMO-free agriculture and food production;
Members: Businesses along the whole food
value chain, including many retailers
Initiative Donau Soja
(Danube Soya Initiative)
AGRANA Stärke GmbH April 2013 Aim: Sustainable GMO-free soya production
in the Danube region (focus on animal feed);
Members: entire value chain, NGOs, etc.

Memberships in major sustainability-related initiatives

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Memberships in industry associations and advocacy groups

Industry association or advocacy group Member company Geographic scope
Industriellenvereinigung (Federation of Austrian Industries) AGRANA Beteiligungs-AG Austria
Fachverband der Nahrungs- und Genussmittelindustrie
(Austrian Food Industry Association)
AGRANA Beteiligungs-AG Austria
AÖL – Assoziation ökologischer Lebensmittelhersteller
(Association of Sustainable Food Producers)
AGRANA Stärke GmbH Germany
CEFS – Comité Européen des Fabricants de Sucre
(European Association of Sugar Producers)
AGRANA Zucker GmbH European Union
Starch Europe AGRANA Stärke GmbH European Union
SGF International E.V. AUSTRIA JUICE GmbH Worldwide

Compliance and business conduct

The activities in 2015|16 surrounding compliance and business conduct are presented in the compliance section (see annual report 2015|16 from page 25) of the corporate governance report.

Social engagement

Beyond striving to maximise the environmental and social sustainability of its core business activities, AGRANA is also engaged as a responsible corporate citizen in the communities where it operates.

Donation of an ambulance for the Red Cross in Mexico

At the fruit preparations facility location in Jacona, Michoacán, Mexico, AGRANA supported the local Red Cross by donating a converted delivery vehicle from its fleet as an ambulance.

Industrial immersion experience for teachers

In August 2015 AGRANA took part in the week-long "Teachers in Business" event organised by Wirtschaftsforum der Führungskräfte, the Austrian Managers Association. In the course of a week of shadowing different AGRANA employees in their work day, a teacher from a business high school experienced numerous different departments at the Austrian

facilities of AGRANA Zucker GmbH in Tulln and AGRANA Stärke GmbH in Pischelsdorf to gain insight into a company's processes and later pass this knowledge on to her students.

Shelter for asylum seekers

To help with accommodating the continuing large influx of refugees from the Middle East, AGRANA decided in autumn 2015, with the agreement of the local community, to modify the administration building and some of the grounds of the former Hohenau sugar factory in March, Austria (closed down in 2006) and make it available as a shelter for asylum seekers.

In November 2015 the first of a total of 50 refugees, mainly families from Afghanistan, Iraq and Syria, moved into the shelter operated by SLC, a company specialising in refugee accommodation. While awaiting the outcome of their asylum application, the newcomers have the opportunity to follow a structured daily routine with Kindergarten and school for children, self-provision of meals by the families (on a subsidised basis), German language classes and sports. AGRANA also organised a welcome celebration for the new citizens-to-be, with CEO Johann Marihart and Hohenau mayor Robert Freitag greeting the group and handing out starter packs of household essentials from AGRANA as well as donations in kind from AGRANA employees and citizens of Hohenau. After an additional common room was renovated and equipped with WLAN, AGRANA was able to do something else of value for the families in December by setting up computer workstations there.

Research and development Group management report 44

Operating in a highly competitive market environment, it is vital for AGRANA to set market trends and differentiate itself from the competition through product innovations. In close partnership with customers, AGRANA's research and development (R&D) teams are always working on new recipes, specialty products and innovative applications for existing products, true to the Group's strategic focus on lasting, sustainable success.

The AGRANA Research & Innovation Center (ARIC) in Tulln, Austria, is the Group's central research and development institute for the starch, bioethanol, sugar and fruit businesses. ARIC, as a separate company in the AGRANA Group, is a wholly owned subsidiary of AGRANA Beteiligungs-AG. The aim of the institute is to develop new applications for innovative products made from potato, corn, waxy corn, wheat and sugar beet. The company is active nationally and internationally as an in-house R&D service provider for sugar technology, food technology, starch and bioethanol technology, microbiology, biotechnology, as well as fruit preparations product development. Moreover, the AGRANA research center also offers its specialist R&D know-how to third parties and acts as a state-accredited laboratory for bioethanol analytics and sugar beet quality control.

This "clustering" and collaboration of R&D specialists from different segments (Sugar, Starch and Fruit) under one roof not only drives administrative synergies but also promotes creative exchange between different groups of researchers. The complementarity between the groups' experience is particularly valuable in cross-segment areas of research, such as nutrition physiology, thickeners and aromas, microbiology, product quality and safety, and organic products. In this way, the growing number of projects involving more than one AGRANA business segment can be carried out much more simply and efficiently.

Research & development 2015 16 2014 15 2013 14
R&D expenditure (internal and external) €m 14.9 14.5 17.2
R&D-to-sales ratio1 % 0.60 0.58 0.61
Number of employees in R&D
(headcount) 214 216 218

Sugar segment

A project aimed at the potential reduction of primary energy costs was launched in connection with the expanded molasses desugaring plant at the sugar factory in Tulln, Austria. The plant operates by chromatographically (without the use of chemicals) separating molasses into a sugar-rich fraction, a betaine-rich one and a fraction high in ash and colour compounds. While there are excellent utilisation opportunities for the first two fractions, the existing uses of the latter residue, which still contains a significant proportion of sugar, can be diversified beyond the current options of feedstuff or fertiliser use.

A cooperative project with the Austrian Centre of Industrial Biotechnology (ACIB GmbH), supported by the COMET programme of Austria's Research Promotion Agency (Österreichische Forschungsförderungsgesellschaft mbH), is studying the fermentative utilisation of the remaining sugar in this molasses residue. The researchers are using a two-stage process in which the residual sugar is digested by microorganisms to produce hydrogen and methane. The goal is to build a two-stage pilot plant in the molasses desugaring facility in Tulln for studying the process over a longer time period. If the concept proves viable and an industrial-scale version is installed, approximately 30% of the primary energy requirement of the molasses desugaring plant could be met from the methane produced on-site.

• • • • • • • • •

45

• • • •

Further advances were also achieved in trials of UV radiation to combat microorganisms in sugar juices at sugar factories. Especially certain strains of bacteria that can be a challenge when supplying customers in the beverage industry have been found to be susceptible to UV radiation and can thus be efficiently controlled.

Besides the continuing studies on the treatment of beet thin-juice, success was achieved particularly in the process water cycle of thin-juice softening plants. Here contamination with microorganisms is particularly undesirable, as they can spread in the extraction area, thus increasing sugar losses. The results obtained in the year under review with a further-improved pilot plant now allow the process to be evaluated in economic terms and a commercial-scale facility to be planned and designed.

Starch segment

Raw materials

The extraction and analytical characterisation of special starches from newly bred plant varieties was implemented on a pilot scale. With the pilot installation for the processing of these new varieties, raw material batches of between 150 and 700 kilogrammes can be split into their main components. The novel starches can thus be extracted in commercial quality and tested for application purposes – primarily for food uses, but also for technical application potential.

Food applications

With the existing conventional method for producing pregelatinised (cold-water-soluble) starches for food use, the attribute profiles of the finished starch could only be modified to a limited extent. A newly developed technology was successfully implemented on a pilot scale, producing a wide range of very diverse pregelatinised starches. Early tests show that the starches from the new process exhibit better solution behaviour and higher thickening performance than drum-dried products.

Non-food applications

Sustainable product solutions in non-food applications for starches are gaining more and more importance. Drawing on synergies in the Group, custom-tailored starch products were developed that satisfy the demands of consumers' growing worldwide interest in naturalness.

For the finishing of graphic paper to produce highgloss paper grades, in a project sponsored by Germany's Fachagentur Nachwachsende Rohstoffe (FNR, Agency for Renewable Resources), new starch products for the top coat were created as substitutes for petroleumbased latex solutions, thus fulfilling sustainability requirements for coated paper.

In textile printing, innovative starch products were employed for new technologies. These starches are distinguished by excellent, stable solution behaviour and outstanding printing results. For the adhesives sector, processes were developed to manufacture higher-quality adhesive products with an improved set of properties at smaller application quantities.

A leading-edge project revolves around biodegradable plastics based on starch as a renewable raw material. Through special modifications, new thermoplastic starches were developed that are suitable for use in a wide variety of packaging materials, such as films, bottles and jars. This means that a starch material is now available for making products like sustainable, biodegradable plastic bags.

Bioethanol

The further optimisation of the bioethanol production process is a permanent focus of research activities. In the year under review the main emphasis was placed on the potential for reducing the quantities of the key additives used (yeast and enzymes) and on the critical process parameters. As well, the scientists searched for yeasts with greater potential for fermentation at higher temperatures. By adjusting the enzyme dosage schedule, a shift in glycerine production was accomplished in favour of an increased alcohol yield.

Fruit segment

A priority in 2015|16 was the consolidation of the individual projects concerned with continual quality improvement in the entire value chain for the production and marketing of fruit preparations. The innovation strategy employed involves the implementation of market-oriented projects which have the common goal of protecting the natural texture of the fruit pieces and preserving the fruit's particular aromas and colours.

In R&D for raw material procurement, substantial progress was made in microbiological characterisation. Efforts were also begun to further improve the microbiological standards through new methods for treating the fruit raw materials.

To raise productivity and profitability in fruit preparations manufacturing, special drying technologies are being developed and introduced. Different ways of using these technologies are being tested with the aim of enhancing fruit preparations quality.

Through the optimisation of process parameters and plant design in collaboration with universities, AGRANA is seeking significant improvements in the organoleptic (sensory) properties of fruit preparations.

In the ice-cream area, the focus is on the development of market-centred product innovations.

In the year, AUSTRIA JUICE further expanded the beverage bases business by winning additional customers and developing new products. The company successfully continued the development of its own production of composite aromas to support the growth segment of beverage bases and build up the aromas business. Particular attention was directed to opening up new market areas such as shandies (beer-based mixed drinks) and fruit-wine-based beverages. Other projects were initiated to improve the utilisation and marketing of process by-products and expand the product range, as well as to enhance and optimise process and product safety of juice concentrates in microbial terms.

Technological innovations in aroma analytics ("electronic noses") were added to the range of sophisticated aids used in quality assurance and product development.

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47

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AGRANA's people

Sustainability at AGRANA

Targets for labour practices and human rights 2015|16: Establishment of ombuds-

person positions at all sites where there is no employee council

Targets for workplace safety 2015|16 in fruit preparations division: Injury rate1 of 2.3

Lost day rate1 of 28.0

Absentee rate1 of 3,106

In the 2015|16 financial year the AGRANA Group as a whole employed an average of 8,611 people (prior year: 8,708). Of this total, 2,120 worked in Austria (prior year: 2,138) and 6,491 were employed in other countries (prior year: 6,570).

The number of employees in each business segment was as follows:

Average number
of employees
(headcount) in
Average number
of FTE2 in
Number of employees
(headcount) at
balance sheet date
financial year financial year 29 Feb 28 Feb
Segment 2015 16 2014 15 2015 16 2014 15 2016 2015
Sugar 2,203 2,326 2,185 2,297 1,984 2,403
Starch 887 863 870 848 881 864
Fruit 5,521 5,519 5,455 5,405 4,940 5,115
Group 8,611 8,708 8,510 8,550 7,805 8,382

The decrease in the employee count in the Sugar segment resulted mainly from shorter campaigns and from efficiency gains. In the Starch segment the number of employees increased slightly due to the expansion project in Aschach, Austria. The staff count in the Fruit segment remained steady.

The average age of permanent employees3 on 29 February 2016 was 42 years (prior year: 41 years). Of the permanent employees, 29.1% (prior year: 28.8%) were women, and 58.0% of salaried staff had an academic degree (prior year: 59.6%). The turnover rate for permanent staff in 2015|16 was 12.0% (prior year: 11.4%).

Human resources management

The interpersonal work environment at AGRANA is marked by mutual esteem and cooperation. Dedication, integrity and social awareness are promoted. Employees are supported in their professional growth and encouraged to think and act like entrepreneurs.

Developing the potential of its employees is important for AGRANA as a global company. Moreover, smooth cooperation and sharing of information across national borders are essential to ensuring the Group's growth in value. The personnel departments offer various programmes and initiatives to support this process. This is done both on a local and regional level, as well as internationally through the AGRANA Academy as described further below.

AGRANA employees within the GRI reporting boundaries4

at the balance sheet date of 29 February 2016

Non-permanent
staff5
Permanent staff Managers6 Of which
executive
Blue- White- leadership7
Segment Total Female collar Female collar Female Total Female Total Female Total Female
Sugar8 110 23.6% 1,069 15.8% 716 40.6% 1,785 25.8% 138 23.9% 17 11.8%
Starch 44 20.5% 574 12.4% 263 44.1% 837 22.3% 49 14.3% 3 33.3%
Fruit 1,366 73.4% 2,288 23.0% 1,286 47.6% 3,574 31.9% 232 25.0% 12 8.3%
Group 1,520 68.3% 3,931 19.5% 2,265 45.0% 6,196 28.8% 419 23.4% 32 12.5%

1 See definition on page 48.

2 Full-time equivalents.

3 Permanent employees of AGRANA Group companies.

4 See GRI reporting boundaries from page 7.

6 Management positions at reporting levels 2 and 3.

7 Reporting level 1 (the reporting level immediately below the Management Board of AGRANA Beteiligungs-AG;

level 1 also includes the regional managing directors of the three segments).

8 Included under the Sugar segment is the staff of AGRANA Beteiligungs-AG.

5 Almost all non-permanent positions represent seasonal local workers in the processing campaigns.

Variable compensation

A major element of AGRANA's personnel strategy is the incentivising and recognition of performance as a contribution to the Group's success. For managerial staff, a Group-wide performance management system, including performance-related pay, is in place to help achieve the company's strategic and operational objectives. In addition to targets related to the corporate financial position and profit, the variable compensation plan also involves personal targets to encourage and honour outstanding individual performance. In the 2015|16 financial year, 7.9% of all employees (prior year: 7.3%) were covered by this incentive-enhanced compensation system.

The personal targets, which for most of the management staff are part of the variable compensation scheme, also include non-financial (i. e., environmental and social) targets where reasonable and practicable.

AGRANA plans to continue to employ a Group-wide performance management system in the future that will place a growing focus especially on individual results and the contribution to corporate performance.

AGRANA HR team recognised with silver BEST RECRUITERS award

The human resources team of AGRANA Beteiligungs-AG is proud to have placed second in the BEST RECRUITERS 2015/16 sector ranking in Austria, ahead of other well-known companies in the food industry, and thus numbering among the top 100 recruiters in the overall ranking.

BEST RECRUITERS is the largest recruiting study in the German-speaking countries. It annually reviews the quality of recruiting practices of the respective top 500 employers in Austria, Germany and Switzerland. The study considers 86 criteria in examining the treatment of applicants, the recruiting presence and job advertisements.

The awarding of the silver BEST RECRUITERS mark confirms that AGRANA Beteiligungs-AG attaches great importance to the respectful treatment of potential new employees. In its permanent search for new talent, AGRANA takes this distinction as an incentive to continue to further raise its quality standards in the use of various recruiting methods and in interactions with people, as well as to remain current with the latest recruiting trends.

HR Cockpit

In 2015|16, AGRANA designed and implemented an HR information and management tool based on key performance indicators (KPIs). On a monthly basis, this system provides the Management Board and the segment and HR management with the personnel KPIs in graphic and table format for every segment, business area, and region, including commentary highlighting the main movements and trends.

Staff development and training

AGRANA aims for the steady improvement of its employees' knowledge and skills. Besides numerous job skills trainings as well as personal development offerings, intensive programmes for all business segments are also available. These training courses not only heighten the Group's performance but also raise employee motivation.

Training hours of AGRANA employees1

in the 2015|16 financial year

Average training hours
per employee
Training and
development costs2
Segment Total Male Female received a training
Sugar3 36.0 36.1 35.9 83.1% 1.3%
Starch 18.4 16.1 27.0 71.3% 0.6%
Fruit 30.0 29.0 32.2 85.0% 0.5%
Group 30.2 29.2 35.9 82.4% 0.8%

1 Permanent staff within the GRI reporting boundaries (see from page 7).

2 Expressed as a share of pay.

3 Included under the Sugar segment is the staff of AGRANA Beteiligungs-AG.

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In February 2016, the fourth generation of the AGRANA Competency Training (ACT) programme was successfully completed by 27 keen and high-performing staff members, including ten women. The participants significantly enhanced their future potential through the projects completed in the course of this curriculum and thanks to the intensive development of their job-specific capabilities and personal and general soft skills.

An AGRANA-wide onboarding programme and welcome days are set up to give new staff a comprehensive view of the Group as a whole and of their own area. Employees gain perspective and understanding as a result. They are also able to participate in Group-wide exchanges known as INCA, or International Communication at AGRANA.

In the year, a priority was the development of internal training programmes and events (e. g., trainings in Sharepoint and in compliance). This served as a channel for the focused dissemination of expertise within the Group (systematic knowledge management).

An important element of training and development throughout the Group is the AGRANA Academy. This initiative trains managers in strategy and leadership. A primary focus is on the cross-segment exchange of ideas and best practices and on the spotting of market trends. The Academy's mission is to prepare management personnel even better for future challenges. As well, sales activities are supported by training delivered by a new Sales Academy. AGRANA cares about the steady further development of its employees. In the 2016|17 financial year a new development programme is being started that specifically addresses long-time staff members in expert positions. For the initial roll-out the programme is being offered for the areas of finance, production, purchasing and quality assurance. The intradisciplinary context allows employees to acquire new knowledge within their subject area and to compare notes with colleagues from the same discipline.

In 2015|16, AGRANA had an average of 68 apprentices in Austria and Germany, training for careers in fields that included mechanical engineering technology, metalworking, food technology and information technology. The proportion of female apprentices was about 10%.

The Group's expenditure for external training and development in the 2015|16 financial year amounted to about € 1.8 million (prior year: € 2.0 million), equivalent to approximately 0.8% (prior year: 0.9%) of total wages and salaries.

Working conditions and human rights

The basis for AGRANA's relationship with its employees is set out in the AGRANA Code of Conduct, which, for instance, prohibits any discrimination or harassment, forbids child labour and forced labour, addresses issues of health and safety in the workplace, and affirms the rights of free association and collective bargaining. The Code of Conduct applies not only to AGRANA's employees but also its suppliers and service providers, as the Code forms part of the Group's purchasing terms and conditions and of its principles for the procurement of agricultural raw materials and intermediate products.

As regards working conditions and human rights, in 2015|16 AGRANA fulfilled the goal (identified in the prior year) to set up a formal complaints office at every site worldwide that did not already have one, so that any employee's grievances about labour practices or human rights will be heard. The Group also established a process for the prompt and fair handling of the complaints.

Workplace health and safety

For AGRANA as a manufacturing company, nothing is more important than workplace safety. To facilitate the comparability and analysis of workplace accidents and the taking of informed corrective action, AGRANA collects fully standardised worldwide health and safety data. For workplace safety improvement, AGRANA has thus far set primarily site-specific targets. The fruit preparations division's objectives for the 2015|16 financial year were reductions of 13% in the injury rate1, of 10% in the lost day rate1 and 4% in the absentee rate1, compared with the base year 2014|15. The reduction targets for the injury rate and for lost days due to accidents were achieved; it was only absences due to sickness that led to an increase in the absentee rate from the prior year.

For the 2016|17 financial year, for the first time, all business segments have segment- or division-level workplace safety targets.

Sugar segment

█ Reduction of 10% in number of workplace accidents1 (base financial year: 2015|16) through site-specific packages of measures

Starch segment

█ Fewer than 12 workplace accidents in the financial year (2015|16: 19 accidents1) through site-specific packages of measures

Fruit segment

Fruit preparations division

(all compared to 2015|16 financial year)

  • █ Reduction in injury rate1 by 16%
  • █ Reduction in lost day rate2 by 17%
  • █ Reduction in absentee rate3 by 10%

Fruit juice concentrate division

█ Standardised division-wide training for all relevant employees in safe handling of chemicals at all sites

Health programmes

Satisfied, energetic and motivated employees are the backbone of the company. That AGRANA has the health and wellbeing of the Group's people at heart is therefore good for everyone. Under the "AGRANA Fit" programme, a rich range of health services and sports is available at many Group sites. Besides diverse presentations and workshops, the company cafeterias catered to the desire for conscious and healthful nutrition. At the annual Wien Energie Business Run, a total of 177 employees (59 teams) again tested their athletic ability in 2015|16.

Balancing work and family

In July 2015, like in the previous year, AGRANA offered employees at the sugar plant in Tulln, Austria, a week of combined child care and teaching during the summer holidays for their children aged three to ten years. Trained educators from Hilfswerk, a non-profit, looked after the children during an age-specific excursionand-workshop programme which featured trips to a Middle Age castle and a school farm as well as a circus workshop. To help balance the needs of work and family, AGRANA also offers its staff in Vienna a company day-care centre, plus a childcare service for days when schools close locally for a day as well for optional days off taken by employees to bridge between a public holiday and the weekend.

In spring 2016 AGRANA joined the Austrian "Business for Family" network, which was launched by the Federal Ministry for Family and Youth to bring together companies and communities interested or already engaged in family-conscious personnel and municipal policies. The network's platform and associated events are a place for dialog, inspiration and sharing of information. In connection with becoming a network partner, AGRANA has decided to take a number of additional measures in the 2016|17 financial year that will improve the compatibility of work and family.

Workplace safety data for the AGRANA Group4

in the 2015|16 and 2014|15 financial years

Injury rate1 Lost day rate2 Absentee rate3
Segment Total Male Female Total Male Female Total Male Female
2015 16
Sugar 1.9 2.3 0.8 26.8 29.5 18.8 5,705.0 5,573.1 6,095.4
Starch 1.6 1.8 0.5 23.1 28.5 2.2 7,400.9 7,369.3 7,522.5
Fruit 2.2 2.5 1.7 25.8 30.6 18.3 3,526.0 3,553.2 3,484.4
Group
2014 15
2.0 2.3 1.4 25.7 30.0 17.2 4,578.3 4,709.8 4,315.9
Sugar 2.2 2.6 0.8 24.5 25.9 20.1 5,101.8 4,969.5 5,523.5
Starch 2.2 2.6 0.6 29.8 34.5 11.4 7,289.2 7,410.3 6,811.2
Fruit 2.8 3.6 1.6 31.5 44.7 11.7 3,417.5 3,743.5 2,931.5
Group 2.5 3.1 1.3 29.3 37.2 13.4 4,344.8 4,646.3 3,737.9

In the 2015|16 financial year there were no fatal accidents in the workplace at the AGRANA Group4.

In the 2015|16 financial year there were 13 accidents of AGRANA contractors. For organisational reasons, these are not included in the AGRANA workplace safety data such as the injury rate, lost day rate and absentee rate.

1 Injury rate = (total number of accidents5 ÷ total paid hours worked6 × 200,0007

  • 2 Lost day rate = (total number of lost days8 ÷ total paid hours worked6) × 200,000
  • 3 Absentee rate = (total number of missed hours due to accident5 and sickness ÷ total paid hours worked6) × 200,000
  • 4 Non-permanent (i. e., fixed-term or temporary) and permanent employees within the GRI reporting boundaries (see from page 7).
  • 5 In AGRANA's workplace safety data, injuries are counted as accidents. Days are counted as lost from the first scheduled work day missed after the accident (excluding accidents on the way to or from work).
  • 6 Total paid hours worked are defined by AGRANA as contractual work hours plus paid overtime.
  • 7 Explanation of the multiplier 200,000: The multiplier is intended to make the Group's internal workplace safety data comparable with other companies. It is based on the assumption of 40 work hours per week and 50 work weeks per year, for 100 employees (40 × 50 × 100). The effect of the multiplier is thus to convert from a company's average number of accidents, lost days or absentee hours (hours missed as a result of accident or illness) per hour of work done in the company, to an annual number per 100 employees.

8 A work day is assumed to have eight hours.

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The Management Board of the AGRANA Group recognises the importance of active risk management. The basic aim of risk management at AGRANA is to identify risks and opportunities as early as possible and take appropriate measures to safeguard the profitability and continued existence of the Group.

The AGRANA Group uses integrated monitoring and reporting systems that permit regular, Group-wide assessment of the risk situation. For the early identification and monitoring of risks relevant to the Group, two mutually complementary control tools are in place:

  • █ An enterprise-wide, operational planning and reporting system forms the basis for the monthly reporting to the appropriate decision-makers. Under this reporting process, a separate risk report is prepared for the Group and each business segment. Its focus is on the determination of sensitivities to changing market prices for the current and next financial year. The individual risk parameters are assessed on an ongoing basis in relation to the current budget (prepared at the start of the year) or the current forecast (as updated in the course of the year), so as to be able to calculate the impacts on the profit measure "operating profit before exceptional items and results of equity-accounted joint ventures". Besides these ongoing reports, the business situation and the use of risk mitigation measures is regularly discussed by the risk managers from the business areas directly with the Management Board.
  • █ The aim of strategic risk management is to identify material individual risks and evaluate their implications for the overall profile of risks and opportunities. Twice every year, the medium- to long-term risks in the individual business areas are analysed by a designated risk management team together with the Group's central risk management function. The process involves risk identification and risk assessment by probability of occurrence and potential magnitude of risk/opportunity, the definition of early warning indicators and the taking of countermeasures. Also, the aggregate risk position of the AGRANA Group is determined for the current financial year using a Monte Carlo simulation (which is an established standard calculation in risk management). This allows a judgement to be made as to whether a combination or accumulation of individual risks could pose a threat to the ability to continue in business as a going concern. The results are reported to the Management Board and the Audit Committee of the Supervisory Board.

Risk management representatives have been designated for the business segments of the AGRANA Group who are responsible for initiating loss-minimising measures as required, subject to Management Board approval.

In the 2015|16 financial year, as in the prior year, the independent auditor evaluated the design and implementation of risk management, in accordance with rule 83 of the Austrian Code of Corporate Governance, and submitted the findings in a final report on the viability of the Group-wide risk management. The evaluation used the recommendations of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) as the reference model against which to compare AGRANA's risk management.

Risk policy

AGRANA sees the responsible treatment of business opportunities and risks as an essential basis for purposeful, value-driven and sustainable business management. The Group's risk policy seeks to ensure risk-aware behaviour, sets out clearly defined responsibilities and stipulates independent risk control as well as integrated internal controls.

Throughout the Group, risks may be assumed only if they arise from the core business of the AGRANA Group and if it does not make economic sense to avoid, insure or hedge them. The policy is to minimise risks to the extent reasonably possible while achieving an appropriate balance of risks and returns. The assumption of risks outside the operating business is prohibited without exception.

AGRANA Beteiligungs-AG is responsible for the Groupwide coordination and implementation of risk management arrangements determined by the Management Board. The use of hedging instruments is permitted only to hedge operating business transactions and financing activities, not for speculative purposes. The positions in hedge contracts and their current value are regularly reported to the Management Board.

Significant risks and uncertainties

The AGRANA Group is exposed to risks both from its business operations and from its national and international operating environment. As a globally operating processor of agricultural raw materials, climatic changes and their impacts on the availability of raw materials pose risks for AGRANA. Compliance with sustainable environmental and social criteria in the supply chain is also increasingly gaining significance from a risk perspective. AGRANA seeks to assure this compliance by adhering to defined criteria for the procurement of agricultural raw materials and intermediate products. With its energy-intensive production activities, particularly in the Sugar and Starch segments, AGRANA is also subject to risks from energy-related and environmental legislation in the various countries. In this context AGRANA has formulated an environmental policy; compliance with the policy is to avoid or minimise risks.

Operational risks

Procurement risks

AGRANA is dependent on the availability of sufficient amounts of agricultural raw materials of the necessary quality. Beyond a possible supply shortfall of appropriate raw materials, fluctuation in the prices of these inputs (to the extent that the difference cannot be passed through to customers) also represents a risk. Major drivers of availability, quality and price are weather conditions in the growing regions, the competitive situation, regulatory and legal requirements, and movements in the exchange rates of relevant currencies.

In the Sugar segment, sugar beet and raw sugar are used as raw materials. Besides weather factors, an important determinant of sugar beet availability is how profitable it is for farmers to grow beet rather than other field crops. For the refining facilities in Bosnia-Herzegovina, Hungary and Romania, the basic driver of AGRANA's profitability is how much value can be added by processing the purchased raw sugar, taking into account the market prices achievable for white sugar. Next to the risk of high raw sugar purchasing prices, another procurement risk lies in the regulations on the import of white and raw sugar into the European Union. The prices for the required raw sugar are hedged with commodity derivatives where financially appropriate. Additionally, exports of non-quota sugar (white sugar) are hedged using commodity derivatives. Hedging is performed in accordance with internal policies and must be reported to the Management Board.

In the Starch segment, sufficient supply contracts are concluded to secure the required quantities of raw materials. When economical, the hedging can also take the form of futures contracts and over-the-counter derivatives, both of which require management approval. The volume and results of these hedges are included in the monthly reporting and are reported to AGRANA's Management Board.

In bioethanol production, when prices change for the grains used as input materials, the selling price of the co-product ActiProt® generally changes in the same direction. This acts as a natural hedge by partly offsetting the grain price movements. However, there remains a residual risk that rising raw material costs cannot be fully passed on to bioethanol customers.

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In the Fruit segment, crop failures caused by unfavourable weather and by plant diseases can adversely affect the availability and purchasing prices of raw materials. In the fruit preparations business, with its worldwide presence and its knowledge of procurement markets, AGRANA is able to anticipate regional supply bottlenecks and price volatility and take appropriate action in response. Also, where possible, one-year contracts are used both with suppliers and customers.

In fruit juice concentrates, the risks related to raw materials, production and sales are managed supraregionally. Both foreign-currency purchases of raw materials and sales contracts in foreign currency are hedged using derivatives. In these derivatives contracts, no short or long positions are taken that exceed the amount necessary for the purpose of hedging the underlying transaction.

The production processes, especially in the Sugar and Starch segments, are energy-intensive. AGRANA therefore continually invests in improving energy efficiency in the manufacturing facilities and designs them for the most cost-effective use of different sources of energy. The quantities and prices of the required energy are also to some extent secured, for the short and medium term.

Product quality and safety

AGRANA sees the manufacturing and marketing of high-quality, safe products as a fundamental prerequisite for long-term economic success. The Group applies rigorous quality management that is continually refined and meets the requirements of the relevant food and beverage legislation, standards and customer specifications. The quality management covers the entire process from raw material sourcing, to manufacturing, to the delivery of the finished product. The compliance with legal and other quality standards is regularly verified by internal and external audits. In addition, product liability insurance is carried to cover any remaining risks.

Market risks and competitive risks

In its worldwide operations, AGRANA is exposed to intense competition from regional and supraregional competitors. The Group's own market position is continually monitored so that any required corrective action can be rapidly initiated. In response to demand and other factors, capacity and cost structures are frequently adjusted to maintain competitiveness in the core markets. The early detection of changes in demand patterns and consumer behaviour is based on the constant analysis of sales variances. In this context, AGRANA also monitors new technological developments and production processes in the market that, going forward, could lead to a partial backward integration on the part of customers into core businesses of individual segments of the AGRANA Group.

An escalation of the political unrest in Eastern Europe could have a negative impact on the market environment in the Fruit segment. Currently, however, the region continues to show a stable earnings situation.

Regulatory risks

Risks from sugar market regulation

As part of the risk management process, potential scenarios and their impacts are examined and assessed from an early stage. Current developments and their implications are also reported from page 17 of this report, in the section on the Sugar segment.

Sugar regime: The expiration date of the minimum beet price and the quotas for sugar and isoglucose is 30 September 2017. Both of these sweeteners can then be produced and sold in the EU in any quantity. The end of the quotas in autumn 2017 has already been affecting the European sugar market, as the competitors pursue an aggressive pricing strategy to secure future market share. With the end of the sugar regime, a certain degree of substitution of isoglucose for granulated sugar is also expected to occur. For the Starch segment, this means fierce competition in the saccharification product markets, but also the opportunity to occupy a growing market.

Free trade agreement: The free trade agreements currently being negotiated by the European Union could have economic impacts on AGRANA. The company is following the ongoing trade talks and analysing and evaluating the results.

EU renewable energy directive (2009/28/EC)

In September 2015 the EU's adoption of Directive 2015/1513 amended the EU renewable energy directive. In view of the EU target of a 40% reduction in greenhouse gas emissions by 2030 (compared to 1990 levels), the rules for the contribution from biofuels were modified. By 2020, the share of energy from renewable sources in all forms of transport is to represent at least 10% of the final consumption of energy in transport in a given member state. The share from conventional ("first-generation") biofuels was capped at 7%. At the same time, the national governments were requested to transpose this directive into national law by September 2017, including determining the renewable energy mix with which they plan to achieve the reduction targets. AGRANA is following the ongoing developments and analysing and evaluating the results.

Legal risks

AGRANA continually monitors changes in the legal setting relevant to its businesses that may lead to a risk situation, and takes risk management actions as necessary. This applies particularly to compliance matters and antitrust, food and environmental legislation; the Group maintains dedicated staff positions for these areas.

There are currently no pending or threatened civil actions against companies of the AGRANA Group that could have a material impact on the Group's financial position, results of operations and cash flows.

As noted in previous annual reports, the Austrian Federal Competition Authority in 2010 sought a fine under an antitrust case for alleged competitionrestricting arrangements with respect to Austria filed against AGRANA Zucker GmbH, Vienna, and Südzucker AG, Mannheim, Germany. To date the Cartel Court has not ruled on the case. AGRANA continues to regard the allegation as unfounded and the fine sought as unwarranted.

Financial risks

AGRANA is subject to risks from movements in exchange rates, interest rates and product prices. The financing of the Group is largely provided centrally through the Treasury department, which regularly reports to the Management Board on the movement in and structure of the Group's net debt, on financial risks and the amount and results of the hedging positions taken.

Interest rate risks

Interest rate risks arise from fluctuation in the value of fixed interest financial instruments as a result of changes in market interest rates; this is referred to as interest rate price risk. By contrast, floating rate investments or borrowings are subject to minimal price risk, as their interest rate is adjusted to market rates very frequently. However, the fluctuation in market interest rates entails risk as to the amounts of future interest payments; this is referred to as interest rate cash flow risk. AGRANA strives to employ interest rate hedging instruments that match the amount and maturity of debt financing. In accordance with IFRS 7, the existing interest rate risks are determined by calculating Cash-Flow-at-Risk and the modified duration and are presented in detail in the notes to the consolidated financial statements.

Currency risks

Currency risks arise mainly from the purchase and sale of goods in foreign currencies and from financing in non-local currencies. For AGRANA, the principal relevant exchange rates are those between the euro and the US dollar, Hungarian forint, Polish zloty, Romanian leu, Ukrainian hryvnia, Russian ruble, Brazilian real, Mexican peso and Chinese yuan.

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As part of its currency management AGRANA, on a monthly basis for each Group company, determines the net foreign currency exposure arising from the purchasing, sales and cash and cash equivalent positions, including the hedging positions held. Open purchasing and sales contracts in foreign currencies that have not yet been settled are also taken into account. For hedging currency risks, AGRANA primarily employs forward foreign exchange contracts (also known as currency forwards). Through these, the value of cash flows denominated in foreign currencies is protected against exchange rate movements. In countries with volatile currencies, these risks are further reduced through the shortening of credit periods, indexing of selling prices to the euro or US dollar, and similar methods of risk mitigation.

Currency risk is determined using the Value-at-Risk approach and presented in the notes to the consolidated financial statements.

Liquidity risks

Liquidity risks at single-company or country level are detected early through the standardised reporting, thus allowing timely mitigative action to be taken as appropriate. The liquidity of the AGRANA Group is sufficiently assured for the long term through bilateral and syndicated credit lines.

Risks of default on receivables

Risks of default on receivables are mitigated by trade credit insurance, strict credit limits, and the ongoing monitoring of customers' credit quality. The residual risk is covered by raising appropriate amounts of provisions.

Risks from irregularities

The auditing of the 2011|12 annual financial statements of AGRANA Fruit México, S.A. de C.V., Michoacán, Mexico, had uncovered grounds for suspicion that various business transactions were not in compliance with the AGRANA Code of Conduct and that their financial reporting did not meet the applicable external and internal accounting standards. After intensive investigations, the local management was replaced in June 2012. Furthermore, appropriate provisions were set aside in the 2012|13 accounts.

The collection procedure against the debtors of AGRANA Fruit México, S.A. de C.V.was continued on the local level. The employment law litigation against the former management was completed except for one lawsuit, and without exceeding the amounts provided for the purpose. The criminal proceedings are conducted by the Mexican public prosecutor. With the insurance company, AGRANA reached an out-of-court settlement for reputational risk coverage.

Arrangements for internal and external audits are in place to assure to the greatest possible extent that similar occurrences are prevented or detected at an early stage.

Aggregate risk

The Group's aggregate risk exposure was marked by continuing high volatility in selling prices and raw material purchasing prices, and, on balance, remained the same as in the prior year. At present there are no discernible risks to the AGRANA Group's ability to continue in business.

System of internal control and of risk management1

The Management Board of AGRANA is responsible for the establishment and design of an internal control system and risk management system in respect of both the accounting process and of compliance with the relevant legal requirements.

The internal control system, standardised Group-wide accounting rules and the International Financial Reporting Standards (IFRS) assure both the uniformity of accounting and the reliability of the financial reporting and externally published financial statements.

Most Group companies use SAP as the primary ERP2 system. All AGRANA companies send the data from their separate financial statements to the central SAP consolidation module. This ensures that the reporting system operates on the basis of uniform data. The consolidated financial statements are prepared by the Group Accounting department. The department is responsible for ensuring the correct and complete transfer of financial data from Group companies, for carrying out the financial statement consolidation, performing analytical processing of the data and preparing financial reports. On a monthly basis the Controlling and Group Accounting departments validate and assure the congruence between the internal and external reporting.

The primary control tool for AGRANA's management is the enterprise-wide, uniform planning and reporting system. The system comprises a medium-term plan with a planning horizon of five years, budget planning for the next financial year, monthly reporting including a separate monthly risk report, and, three times per year, a projection for the current financial year that incorporates the significant financial developments. In the event of material changes in the planning assumptions, this system is supplemented with ad-hoc forecasts.

The monthly financial reporting produced by Controlling portrays the performance of all Group companies. The contents of this report are standardised across the Group and include detailed sales data, the balance sheet, income statement and the financials derived from them, as well as an analysis of significant variances. This monthly report also includes a dedicated risk report both for each business segment and the whole AGRANA Group, calculating the risk potential for the current and next financial year for the key profitability factors, based on the assumption of current market prices for not yet contractually secured volumes versus budgeted prices.

A Group-wide risk management system (see "Risk management" section from page 83) at both the operational and strategic level in which all sources and types of risk relevant to AGRANA – such as the regulatory and legal environment, raw material procurement, competitive and market risks, and financing – are analysed for risks and opportunities, enables the management to identify changes in the Group's environment at an early stage and to take timely corrective action as required.

Internal Audit monitors all operational and business processes in the Group for compliance with legal provisions and internal policies and procedures, and for the effectiveness of risk management and the systems of internal control. The unit's audit activities are guided by a Management-Board-approved annual audit plan that is based on a Group-wide risk assessment. When requested by the Management Board, Internal Audit also performs ad-hoc audits focusing on current and future risks. The audit findings are regularly reported to AGRANA's Management Board and the respective managers responsible as well as the Supervisory Board (represented by the Audit Committee). The implementation of the actions proposed by Internal Audit is assured by follow-up verifications.

As part of the audit of the financial statements, the external independent auditor, to the extent required for the audit opinion, annually evaluates the internal control system of the accounting process and of the information technology systems. The audit findings are reported to the Audit Committee of the Supervisory Board.

2 Enterprise resource planning.

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Capital, shares, voting rights and rights of control1

The share capital of AGRANA Beteiligungs-AG at the balance sheet date of 29 February 2016 was € 103.2 million, divided into 14,202,040 voting ordinary no-par value bearer shares. There are no other classes of shares.

Z&S Zucker und Stärke Holding AG ("Z&S"), based in Vienna, is the majority shareholder, directly holding 86.2% of the share capital of AGRANA Beteiligungs-AG. Z&S is a wholly-owned subsidiary of AGRANA Zucker, Stärke und Frucht Holding AG, Vienna. In this latter company, Zucker-Beteiligungsgesellschaft m.b.H. ("ZBG"), Vienna, in turn holds 50% less one share (that share being held by AGRANA Zucker GmbH, a subsidiary of AGRANA Beteiligungs-AG) and Südzucker AG ("Südzucker"), Mannheim, Germany, holds the other 50%. The following five Vienna-based entities are shareholders of ZBG: "ALMARA" Holding GmbH (a subsidiary of RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN registrierte Genossenschaft mit beschränkter Haftung); Marchfelder Zuckerfabriken Gesellschaft m.b.H.; Estezet Beteiligungsgesellschaft m.b.H.; Rübenproduzenten Beteiligungs GesmbH; and Leipnik-Lundenburger Invest Beteiligungs AG. Under a syndicate agreement between Südzucker and ZBG, the voting rights of the syndicate partners are combined in Z&S, there are restrictions on the transfer of shares, and the partners in the syndicate have certain mutual rights to appoint members of each other's management board and supervisory board. Thus, Johann Marihart has been nominated by ZBG and appointed as a member of the management board of Südzucker AG, and Thomas Kölbl has been nominated by Südzucker and appointed as a member of the management board of AGRANA Beteiligungs-AG.

In February 2014, 4.9% of AGRANA's shares were acquired directly by Südzucker, which thus increased its direct interest in AGRANA Beteiligungs-AG to approximately 6.5%. Of this total, almost 5 percentage points are to be returned to free float in order to increase the liquidity of AGRANA shares and thus enhance their attractiveness for investors. On any of the shares that are not placed, Z&S holds a call option, with Südzucker as the counterparty.

There are no shareholders with special rights of control. Employees who are also shareholders of AGRANA Beteiligungs-AG exercise their voting rights individually.

The Management Board does not have powers to issue or repurchase shares except to the extent provided by law.

Under a resolution of the Annual General Meeting on 3 July 2015, the Management Board was authorised pursuant to section 169 Austrian Stock Corporation Act, for a period of five years from entry of the corresponding amendment to the Articles of Association in the commercial register (which entry was made on 4 September 2015), to increase the share capital, subject to the agreement of the Supervisory Board, by up to € 15,261,295.18 by issuing up to 2,100,000 new bearer shares of the Company against payment in cash or contributions in kind, in one or more tranches, and to determine, in agreement with the Supervisory Board, the issue amount (which shall not be less than the proportionate amount of the share capital), the terms of the issue and the other details of the implementation of the capital increase.

The Management Board was also authorised under section 65 (1) 8 and (1a) and (1b) Austrian Stock Corporation Act, for a period of 30 months from the date of the resolution, to buy back the Company's own shares to the extent of up to 10% of the share capital of the Company, to utilise this limit of 10% repeatedly, and to acquire the shares both on the stock exchange and over the counter, subject to the agreement of the Supervisory Board, and with or without the exclusion of the shareholders' proportional right to sell.

The agreements for the Schuldscheindarlehen (bonded loan) and credit lines (syndicated loans) contain change of control clauses that grant the lenders an extraordinary right to call the loans.

With this exception, there are no significant agreements that take effect, change materially, or end, in the case of a change of control resulting from a takeover offer. No compensation agreements in the event of a public tender offer exist between the Company and its Management Board, Supervisory Board or other staff.

Outlook

With its diversified business model and sound balance sheet, AGRANA regards itself as well positioned and is optimistic for the new financial year.

AGRANA Group 2015 16 2016 17
Actual Forecast
Revenue €m 2,477.6 Moderate increase i
Operating profit (EBIT)1 €m 129.0 Moderate increase i
Investment2 €m 116.0 Approx. 114

AGRANA currently expects both Group revenue and operating profit (EBIT) to increase moderately for the 2016|17 financial year.

Total investment in the three business segments in 2016|17, at about € 114 million, will significantly exceed depreciation of just under € 90 million.

Sugar segment 2015 16
Actual
2016 17
Forecast
Revenue €m 672.6 Steady p
Operating profit (EBIT)1 €m 4.3 Significant increase ii
Investment2 €m 46.1 Approx. 22

In the Sugar segment, AGRANA expects revenue at least in line with the previous year, in anticipation of stable sales volumes and prices. Improved margins and the cost reduction programme initiated in summer 2015 augur a significant increase in EBIT in 2016|17 compared to the year before.

The capital expenditures planned for the Sugar segment in 2015|16 are approximately € 22 million. Alongside asset replacement and maintenance investment, the spending will go especially to measures to improve energy efficiency and product quality.

Starch segment 2015 16 2016 17
Actual Forecast
Revenue €m 721.6 Steady p
Operating profit (EBIT)1 €m 65.9 Moderate reduction s
Investment2 €m 28.2 Approx. 58

In the Starch segment, AGRANA's projection for the 2016|17 financial year calls for slightly rising sales volumes and steady revenue. The probable downward price pressure in saccharification products and bioethanol leads to a moderately to significantly reduced EBIT forecast compared to 2015|16, despite lower commodity derivative prices for raw materials.

The investment of approximately € 58 million planned in the Starch segment represents about 50% of the Group total. The capital expenditure will primarily target capacity expansions in Austria (in Aschach) and product segments that have a high refining intensity, in order to seize growth opportunities in high-margin areas.

Fruit segment 2015 16 2016 17
Actual Forecast
Revenue €m 1,083.4 Significant increase ii
Operating profit (EBIT)1 €m 58.8 Significant increase ii
Investment2 €m 41.7 Approx. 34

AGRANA expects that in the 2016|17 financial year the Fruit segment will achieve significant growth in revenue and EBIT.

1 Operating profit (EBIT) is after exceptional items and results of equity-accounted joint ventures.

2 Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill.

• • • • • • • • •

59

• • • •

For the fruit preparations division a volume-driven positive revenue trend is predicted, led by the Europe, North America and Asia regions. With expected stable raw material prices, EBIT in this business area is projected to be steady relative to 2015|16.

In the fruit juice concentrate division, revenue is forecast to grow significantly, due to higher sales prices as a result of increased raw material prices for the 2015 harvest compared with the 2014 crop. This should also lead to a significant recovery in EBIT.

The capital investment budgeted in the Fruit segment this year is about € 34 million. In the fruit preparations business, besides investing in asset replacement and maintenance, capacity is to be expanded in the USA and Asia, while the focus in the fruit juice concentrate business is on asset replacement and maintenance investment and the continual improvement of product quality.

Sustainability outlook for 2016|17

Ensuring and documenting sustainable business practices is increasingly a sourcing criterion for AGRANA's customers, particularly in the food and beverage industry. In 2016|17 and the years to come, AGRANA will therefore continue its intensive work on the further integration of sustainability in the core business activities. To guide this process, the Group in 2014|15 set goals and targets for further improving environmental and social performance in its own production facilities and for its employees, and added further objectives in 2015|16, particularly regarding sustainability in its supply chain. The performance against these objectives is progressively reported in the sustainability information integrated in the annual report.

Consolidated financial statements 2015|16

AGRANA Group (under IFRS)

  • Consolidated income statement 62
  • Consolidated statement of comprehensive income 63
  • Consolidated cash flow statement 64
  • Consolidated balance sheet 65
  • Consolidated statement of changes in equity 66
  • Notes to the consolidated financial statements 68
  • Segment information 68
  • Basis of preparation 71
  • Scope of consolidation 74
  • Consolidation methods 78
  • Currency translation 78
79 Accounting policies
86 Notes to the consolidated
income statement
93 Notes to the consolidated
94 cash flow statement
107 Notes to the consolidated balance sheet
122 Notes on financial instruments
123 Events after the balance sheet date
Related party disclosures
126 List of members
of AGRANA's boards
127 Subsidiaries and business interests
131 Statement by the members
of the Management Board

• • • • • • • • • • • •

• • • • • • • • •

61

• • • •

Independent auditor's report 132

Consolidated financial statements 62 Consolidated income statement

¤000 2015 16 2014 15
Revenue 2,477,647 2,493,512
Changes in inventories of finished and unfinished goods 25,183 (76,133)
Own work capitalised 1,523 1,375
Other operating income 44,087 38,3421
Cost of materials (1,783,723) (1,703,680)
Staff costs (285,696) (282,054)
Depreciation, amortisation and impairment losses (85,381) (80,065)
Other operating expenses (289,208) (294,950)1
Share of results of equity-accounted joint ventures 24,523 25,372
Operating profit [EBIT] 128,955 121,719
Finance income 43,789 68,7201
Finance expense (68,308) (73,960)1
Net financial items (24,519) (5,240)
Profit before tax 104,436 116,479
Income tax expense (23,508) (31,901)
Profit for the period 80,928 84,578
Attributable to shareholders of the parent 82,723 80,896
Attributable to non-controlling interests (1,795) 3,682
Earnings per share under IFRS (basic and diluted) € 5.82 € 5.70

• • • • • • • • •

63

• • • •

Consolidated financial statements 63 Consolidated statement of comprehensive income

¤000 2015 16 2014 15
Profit for the period 80,928 84,578
Other comprehensive (expense)/income:
Currency translation differences (14,655) (9,513)
Available-for-sale financial assets (IAS 39) after deferred taxes (1,163) 323
Cash flow hedges (IAS 39) after deferred taxes (2,515) (19)
Effects from equity-accounted joint ventures (2,103) 2,287
(Expense) to be recognised in the income statement in the future (20,436) (6,922)
Change in actuarial gains and losses on
defined benefit pension obligations and
similar liabilities (IAS 19) after deferred taxes
2,820 (14,697)
Effects from equity-accounted joint ventures 3 (6)
Income/(expense) that will not be recognised
in the income statement in the future 2,823 (14,703)
Other comprehensive (expense) (17,613) (21,625)
Total comprehensive income for the period 63,315 62,953
Attributable to shareholders of the parent 66,869 58,711
Attributable to non-controlling interests (3,554) 4,242

Consolidated financial statements 64 Consolidated cash flow statement

¤000 2015 16 2014 151
Profit for the period 80,928 84,578
Depreciation, amortisation and impairment of non-current assets 86,211 80,763
Reversal of impairment losses on non-current assets (821) (698)
Losses on disposal of non-current assets 1,075 63
Changes in non-current provisions 3,106 (1,684)
Share of results of equity-accounted joint ventures (24,523) (25,372)
Dividends and dividend prepayments
received from equity-accounted joint ventures 33,000 22,900
Dividends received from non-consolidated subsidiaries 763 (763)
Other non-cash expenses and income 46,175 48,279
Operating cash flow before changes in working capital 225,914 208,066
Changes in inventories (42,107) 49,865
Changes in receivables and current assets (712) (715)
Changes in current provisions (14,583) (23)
Changes in payables (excluding borrowings) (16,289) 2,914
Changes in working capital (73,691) 52,041
Interest received 7,684 7,559
Interest paid (16,687) (18,207)
Tax paid (41,307) (22,316)
Net cash from operating activities 101,913 227,143
Dividends received 10 6
Proceeds from disposal of non-current assets 3,103 1,621
Purchases of property, plant and equipment and intangible assets,
net of government grants (107,720) (86,982)
Proceeds from disposal of securities 1 1,244
Proceeds from disposal of participation capital 85,000 0
Purchases of non-current financial assets (318) (40)
Net cash (used in) investing activities (19,924) (84,151)
Issue of Schuldscheindarlehen, or bonded loan 0 90,000
Repayment of Schuldscheindarlehen, or bonded loan 0 (74,000)
Repayment of current borrowings to
affiliated companies in the Südzucker group (85,000) 0
Outflows from bank overdrafts and cash advances (21,098) (8,373)
Purchase of non-controlling interest (2,558) (33,327)
Dividends paid (54,957) (55,445)
Net cash (used in) financing activities (163,613) (81,145)
Net (decrease)/increase in cash and cash equivalents (81,624) 61,847
Effect of movements in foreign exchange rates
on cash and cash equivalents (2,819) (3,885)
Cash and cash equivalents at beginning of period 193,818 135,856
Cash and cash equivalents at end of period 109,375 193,818

• • • • • • • • •

65

• • • •

Consolidated financial statements 65 Consolidated balance sheet

at 29 February 2016

¤000 29 Feb 28 Feb
2016 2015
ASSETS
A. Non-current assets
Intangible assets 241,961 241,475
Property, plant and equipment 679,592 661,537
Equity-accounted joint ventures 60,906 84,384
Securities 18,622 104,879
Investments in non-consolidated subsidiaries and outside companies 1,091 1,114
Receivables and other assets 10,602 21,070
Deferred tax assets 14,873 22,184
1,027,647 1,136,643
B. Current assets
Inventories 654,172 625,313
Trade receivables and other assets 439,521 439,793
Current tax assets 10,774 11,274
Securities 45 46
Cash and cash equivalents 109,375 193,818
1,213,887 1,270,244
C. Non-current assets held for sale 1,631 0
Total assets 2,243,165 2,406,887
EQUITY AND LIABILITIES
A. Equity
Share capital 103,210 103,210
Share capital 103,210 103,210
Share premium and other capital reserves 411,362 411,362
Retained earnings 629,709 614,687
Equity attributable to shareholders of the parent 1,144,281 1,129,259
Non-controlling interests 55,843 65,161
B. Non-current liabilities 1,200,124 1,194,420
Retirement and termination benefit obligations 67,146 71,885
Other provisions 19,999 14,879
Borrowings 286,028 319,672
Other payables 1,024 1,204
Deferred tax liabilities 4,481 10,424
C. Current liabilities 378,678 418,064
Other provisions 28,426 41,757
Borrowings 247,820 309,354
Trade and other payables 375,058 411,193
Tax liabilities 13,059 32,099
664,363 794,403
Total equity and liabilities 2,243,165 2,406,887

Consolidated financial statements 66 Consolidated statement of changes in equity

for the year ended 29 February 2016

Retained
¤000 Share
capital
Share
premium
and other
capital
reserves
Available-
for-sale
reserve
Cash flow
hedge
reserve
Reserve
for
actuarial
gains and
losses
Effects
from
equity-
accounted
joint
ventures
2015 16
At 1 March 2015 103,210 411,362 4,294 215 (29,945) (23,775)
Fair value movements under IAS 39 0 0 (1,529) (3,353) 0 0
Changes in actuarial gains
and losses on defined
benefit pension obligations
and similar liabilities 0 0 0 0 3,161 3
Tax effects 0 0 366 838 (386) (1)
Currency translation loss 0 0 0 0 0 (2,104)
Other comprehensive
(expense)/income for the period 0 0 (1,163) (2,515) 2,775 (2,102)
Profit for the period 0 0 0 0 0 0
Total comprehensive
(expense)/income for the period 0 0 (1,163) (2,515) 2,775 (2,102)
Dividends paid 0 0 0 0 0 0
Transfer to reserves 0 0 0 0 0 0
Changes in equity interests
and in scope of consolidation
0 0 0 0 0 0
Other changes 0 0 0 0 0 0
At 29 February 2016 103,210 411,362 3,131 (2,300) (27,170) (25,877)
629,709
2014 15
At 1 March 2014 103,210 411,362 3,971 234 (15,463) (25,935)
Fair value movements under IAS 39
Changes in actuarial gains
and losses on defined
benefit pension obligations
0 0 1,022 (31) 0 0
and similar liabilities 0 0 0 0 (16,966) (7)
Tax effects 0 0 (699) 12 2,484 241
Currency translation loss 0 0 0 0 0 1,926
Other comprehensive
(expense)/income for the period
0 0 323 (19) (14,482) 2,160
Profit for the period 0 0 0 0 0 0
Total comprehensive
(expense)/income for the period
0 0 323 (19) (14,482) 2,160
Dividends paid 0 0 0 0 0 0
Transfer to reserves 0 0 0 0 0 0
Changes in equity interests
and in scope of consolidation 0 0 0 0 0 0
Other changes 0 0 0 0 0 0
At 28 February 2015 103,210 411,362 4,294 215 (29,945) (23,775)
614,687

Attributable to the shareholders of AGRANA Beteiligungs-AG

• • • • • • • • •

67

• • • •

earnings
Non
controlling
interests
Equity
attributable
to share-
holders of
the parent
Profit
for the
period
Currency
translation
reserve
Other
retained
earnings
65,161
1,194,420
1,129,259 80,896 (67,981) 650,983
0
(4,882)
(4,882) 0 0 0
61 3,164 0 0 0
(15) 817 0 0 0
(1,805)
(16,758)
(14,953) 0 (12,849) 0
(1,759)
(17,613)
(15,854) 0 (12,849) 0
(1,795)
80,928
82,723 82,723 0 0
(3,554)
63,315
66,869 82,723 (12,849) 0
(3,830)
(54,957)
(51,127) (51,127) 0 0
0 0 (29,769) 0 29,769
(1,934)
(2,658)
(724) 0 0 (724)
0 4 0 0 4
55,843
1,200,124
1,144,281 82,723 (80,830) 680,032
66,255
1,190,988
1,124,733 105,155 (57,814) 600,013
0 991 0 0 0
(288)
(17,261)
(16,973) 0 0 0
152 2,038 0 0 0
696
(7,545)
(8,241) 0 (10,167) 0
560
(21,625)
(22,185) 0 (10,167) 0

Attributable to the shareholders of AGRANA Beteiligungs-AG

560
(21,625)
(22,185) 0 (10,167) 0
3,682
84,578
80,896 80,896 0 0
4,242
62,953
58,711 80,896 (10,167) 0
(4,318)
(55,445)
(51,127) (51,127) 0 0
0 0 (54,028) 0 54,028
(979)
(3,527)
(2,548) 0 0 (2,548)
(39)
(549)
(510) 0 0 (510)
65,161
1,194,420
1,129,259 80,896 (67,981) 650,983

Notes to the consolidated financial statements

AGRANA Beteiligungs-AG ("the Company") is the parent company of the AGRANA Group and has its registered office at Friedrich-Wilhelm-Raiffeisen-Platz 1, 1020 Vienna, Austria. The Company together with its subsidiaries constitutes an international group engaged mainly in the worldwide industrial processing of agricultural raw materials.

The consolidated financial statements of the AGRANA Group for 2015|16 were prepared in accordance with International Financial Reporting Standards (IFRS) in effect at the balance sheet date and with International Financial Reporting Interpretations Committee (IFRIC) interpretations, as adopted by the European Union.

1. Segment information

The segment reporting, which conforms with IFRS 8, distinguishes between three business segments – Sugar, Starch and Fruit – and thus follows the AGRANA Group's internal reporting structure.

The AGRANA Group has the three reportable segments Sugar, Starch and Fruit, which correspond to its strategic businesses. Each of the segments offers a different product portfolio and is managed separately in view of the different production technologies, raw material procurement and sales strategies. AGRANA Beteiligungs-Aktiengesellschaft ("AGRANA Beteiligungs-AG"), the Group's holding company, is considered part of the Sugar segment.

For each segment, internal monthly reporting is provided to the Group's chief operating decision maker (CODM). The members of the Management Board of AGRANA Beteiligungs-AG constitute the CODM. Information on the results of the reportable segments is given below. Segment profitability is evaluated primarily on the basis of operating profit before exceptional items, which is a key performance indicator in every internal management report.

Consoli-
€000 Sugar Starch Fruit dation Group
2015 16
Total revenue 739,912 728,730 1,084,085 (75,080) 2,477,647
Inter-segment revenue (67,268) (7,164) (648) 75,080 0
Revenue 672,644 721,566 1,083,437 0 2,477,647
EBITDA 25,397 64,884 101,676 0 191,957
Depreciation, amortisation and
impairment of property, plant and
equipment and intangibles1 (22,633) (22,038) (39,800) 0 (84,471)
Operating profit before exceptional items
and results of equity-accounted joint ventures 2,764 42,846 61,876 0 107,486
Exceptional items 0 0 (3,054) 0 (3,054)
Share of results of
equity-accounted joint ventures 1,542 22,981 0 0 24,523
Operating profit [EBIT] 4,306 65,827 58,822 0 128,955
Segment assets 1,619,559 474,811 1,094,648 (945,853) 2,243,165
Segment equity 906,208 318,089 312,633 (336,806) 1,200,124
Segment liabilities 713,351 156,722 782,015 (609,047) 1,043,041
Purchases of property, plant and
equipment and intangibles1 46,102 28,151 41,730 0 115,983
Purchases of non-current financial assets 0 10 308 0 318
Total capital expenditure 46,102 28,161 42,038 0 116,301
Carrying amount of
equity-accounted joint ventures 5,303 55,603 0 0 60,906
Number of employees
(average full-time equivalents) 2,185 870 5,455 0 8,510

1.1. Segmentation by business activity

• • • • • • • • •

69

• • • •

Consoli-
€000 Sugar Starch Fruit dation Group
2014 15
Total revenue 812,265 708,233 1,062,510 (89,496) 2,493,512
Inter-segment revenue (81,127) (8,102) (267) 89,496 0
Revenue 731,138 700,131 1,062,243 0 2,493,512
EBITDA 29,355 49,005 103,556 0 181,916
Depreciation, amortisation and
impairment of property, plant and
equipment and intangibles1 (19,656) (21,967) (38,276) 0 (79,899)
Operating profit before exceptional items
and results of equity-accounted joint ventures 9,699 27,038 65,280 0 102,017
Exceptional items 1,002 0 (6,672) 0 (5,670)
Share of results of
equity-accounted joint ventures (1,721) 27,093 0 0 25,372
Operating profit [EBIT] 8,980 54,131 58,608 0 121,719
Segment assets 1,722,879 467,881 1,080,921 (864,794) 2,406,887
Segment equity 919,359 300,979 310,889 (336,807) 1,194,420
Segment liabilities 803,520 166,902 770,032 (527,987) 1,212,467
Purchases of property, plant and
equipment and intangibles1 34,476 13,743 42,990 0 91,209
Purchases of non-current financial assets 4 0 36 0 40
Total capital expenditure 34,480 13,743 43,026 0 91,249
Carrying amount of
equity-accounted joint ventures 3,754 80,630 0 0 84,384
Number of employees
(average full-time equivalents)2 2,297 848 5,405 0 8,550

The revenue and asset data represent consolidated amounts. Inter-segment charges for products and services are based on comparable market prices.

Exceptional items consisted of expenses for the closure of a production site in Belgium and a farm in Morocco, as well as for a strategy-and-organisation project in the Fruit segment.

The items "segment assets" and "segment liabilities" match the allocation used in internal reporting. The inter-segment consolidation consisted of liability and dividend consolidation of € 609,047 thousand (prior year: € 527,987 thousand) and capital consolidation of € 336,806 thousand (prior year: € 336,807 thousand).

1.2. Segmentation by region

Companies are assigned to geographic segments based on the location of their registered office.

Revenue €000 2015 16 2014 15
Austria 1,248,869 1,333,776
Hungary 89,218 86,107
Romania 178,510 173,030
Rest of EU 412,566 408,113
EU-28 1,929,163 2,001,026
Rest of Europe (Bosnia-Herzegovina, Russia, Serbia, Turkey, Ukraine) 90,496 91,863
Other foreign countries 457,988 400,623
Total 2,477,647 2,493,512

2 The prior-year data have been restated under IAS 8. Further information is provided on page 72.

The revenue generated by the Eastern European companies was € 539,571 thousand (prior year: € 541,033 thousand), or about 21.8% (prior year: 21.7%) of total revenue. The countries defined as Eastern Europe are Bosnia-Herzegovina, Bulgaria, Czech Republic, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Turkey and Ukraine.

Purchases of property, plant and equipment and intangibles1 ¤000 2015 16 2014 15
Austria 65,630 32,999
Hungary 12,650 17,673
Romania 3,577 4,408
Rest of EU 15,987 13,651
EU-28 97,844 68,731
Rest of Europe (Bosnia-Herzegovina, Russia, Serbia, Turkey, Ukraine) 2,751 3,255
Other foreign countries 15,388 19,223
Total 115,983 91,209
Carrying amount of property, plant and equipment and intangible assets1 ¤000 2015 16 2014 15
Austria 344,563 315,217
Hungary 68,806 63,690
Romania 39,009 39,760
Rest of EU 113,090 121,481
EU-28 565,468 540,148
Rest of Europe (Bosnia-Herzegovina, Russia, Serbia, Turkey, Ukraine) 17,831 19,723
Other foreign countries 112,052 116,965
Total 695,351 676,836
Standard / Interpretation Issued
by the IASB
Expected to be
effective for
AGRANA from
financial year
Adopted
by the EU
IAS 1 Presentation of Financial Statements
(Amended)
18 Dec 2014 2016 17 18 Dec 2015
IAS 7 Statement of Cash Flows (Amended) 29 Jan 2016 2017 18 Not to date
IAS 12 Income Taxes (Amended) 19 Jan 2016 2017 18 Not to date
IAS 16 Property, Plant and Equipment
(Amended)
12 May 2014 and
30 Jun 2014
2016 17 23 Nov 2015 and
2 Dec 2015
IAS 27 (2011) Separate Financial Statements
(Amended)
12 Aug 2014 2016 17 18 Dec 2015

• • • • • • • • •

71

• • • •

2. Basis of preparation

Amounts in the consolidated financial statements are presented in thousands of euros (€000) unless otherwise indicated. As a result of automated calculation, rounding errors may occur in totals of rounded amounts and percentages.

In the presentation of the income statement, the nature of expense method was used. The separate financial statements of the fully consolidated companies represented in the consolidated financial statements are based on uniform accounting policies.

All IFRS issued by the International Accounting Standards Board (IASB) that were effective at the time of preparation of these consolidated financial statements and applied by AGRANA Beteiligungs-AG have been adopted by the European Commission for application in the EU.

The following standards and interpretations either have been adopted by the European Union and will become effective for the 2015|16 financial year or later, or have been issued by the IASB but not yet adopted by the EU. In the latter case, the effective year given in the table represents the expected time of adoption. AGRANA has not early-adopted any of the new or changed standards cited below. The information provided on the content of the standards depends on whether and to what extent they are relevant to AGRANA. Where accounting rules becoming effective in subsequent periods do not apply to AGRANA's situation, no information on their content is given.

Standard / Interpretation Issued Expected to be Adopted Content and expected impacts on AGRANA

IAS 1 Presentation of Financial Statements 18 Dec 2014 2016|17 18 Dec 2015 The amendments clarify that information should not be obscured by aggregation and that materiality considerations apply to all (Amended) parts of the financial statements, even when individual standards require specific disclosures. The relevance of the items in the balance sheet and statement of comprehensive income determines their disaggregation or aggregation. In other comprehensive income, all effects from companies accounted for using the equity method are presented in a separate category regardless of whether or not they will subsequently be reclassified to the income statement. The amendments are part of the Disclosure Initiative, which is intended to improve disclosure requirements. Application of the amendments is expected to have impacts on the presentation of the financial statements and on disclosures in the notes.

IAS 7 Statement of Cash Flows (Amended) 29 Jan 2016 2017|18 Not to date The intent of the amendment is to expand disclosures of the components of changes in liabilities arising from financing activities, as through a reconciliation.

IAS 12 Income Taxes (Amended) 19 Jan 2016 2017|18 Not to date The amendment is not relevant to AGRANA.

IAS 16 Property, Plant and Equipment 12 May 2014 and 2016|17 23 Nov 2015 and No impacts on the presentation of the financial position, results of operations and cash flows are expected.

IAS 27 (2011) Separate Financial Statements 12 Aug 2014 2016|17 18 Dec 2015 The amendment has no impact, as it relates to separate financial statements.

Standard / Interpretation Issued
by the IASB
Expected to be
effective for
AGRANA from
financial year
Adopted
by the EU
IAS 28 (2011) Investments in Associates and Joint Ventures
(Amended)
11 Sep 2014 and
18 Dec 2014
2016 17 Not to date
IAS 38 Intangible Assets (Amended) 12 May 2014 2016 17 2 Dec 2015
IAS 41 Agriculture (Amended) 30 Jun 2014 2016 17 23 Nov 2015
IFRS 9 (2014) Financial Instruments 24 Jul 2014 2018 19 Not to date
IFRS 10 Consolidated Financial Statements
(Amended)
11 Sep 2014 and
18 Dec 2014
2016 17 Not to date
IFRS 11 Joint Arrangements (Amended) 6 May 2014 2016 17 24 Nov 2015
IFRS 12 Disclosure of Interests in Other Entities
(Amended)
18 Dec 2014 2016 17 Not to date
IFRS 14 Regulatory Deferral Accounts 30 Jan 2014 2016 17 No
IFRS 15 Revenue from Contracts with Customers 28 May 2014 2018 19 Not to date

|--|

• • • • • • • • •

73

• • • •

Standard / Interpretation Issued Expected to be Adopted Content and expected impacts on AGRANA

IAS 28 (2011) Investments in Associates and Joint Ventures 11 Sep 2014 and 2016|17 Not to date No impacts on the presentation of the financial position, results of operations and cash flows are expected.

IAS 38 Intangible Assets (Amended) 12 May 2014 2016|17 2 Dec 2015 No impacts on the presentation of the financial position, results of operations and cash flows are expected.

IAS 41 Agriculture (Amended) 30 Jun 2014 2016|17 23 Nov 2015 No material impacts on the presentation of the financial position, results of operations and cash flows are expected.

IFRS 9 (2014) Financial Instruments 24 Jul 2014 2018|19 Not to date The IASB has issued the final version of IFRS 9, bringing together the results of the classification and measurement, impairment and hedge accounting phases of the project to replace IAS 39 (Financial Instruments: Recognition and Measurement). This new version of the standard adds a new model of expected losses for measuring impairment, and limited changes to the classification and measurement requirements for financial assets. The impairment model is based on the concept of providing for expected losses at the inception of a contract, with the exception of purchased or originated credit-impaired financial assets, where expected credit losses are incorporated into the effective interest rate determined at initial recognition. The classification and measurement model for financial assets and for certain debt instruments is expanded by adding a new category, "fair value through other comprehensive income" (FVTOCI). As well, additional guidance is provided on how to apply the business model and contractual cash flow characteristics test. The standard supersedes all previous versions of IFRS 9. For the securities holdings the new classification will also result in changes in measurement method. For derivatives there is expected to be an expansion in hedge accounting. Expanded disclosures are also expected.

IFRS 10 Consolidated Financial Statements 11 Sep 2014 and 2016|17 Not to date No impacts on the presentation of the financial position, results of operations and cash flows are expected.

IFRS 11 Joint Arrangements (Amended) 6 May 2014 2016|17 24 Nov 2015 The amendment may have impacts on the accounting for future acquisitions of equity interests.

IFRS 12 Disclosure of Interests in Other Entities 18 Dec 2014 2016|17 Not to date The amendment is not relevant to AGRANA.

IFRS 14 Regulatory Deferral Accounts 30 Jan 2014 2016|17 No The standard is not relevant to AGRANA. In view of the extremely limited group of users, the European Commission has not endorsed this interim standard for adoption into EU law.

IFRS 15 Revenue from Contracts with Customers 28 May 2014 2018|19 Not to date IFRS 15 establishes the principles that an entity shall apply to report about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. Specifically, it also establishes criteria for determining whether different performance obligations under a contract are distinct. AGRANA does not expect the application of the standard to have an impact on the timing of revenue recognition, but expects it to require expanded disclosures.

IFRS 16 Leases 13 Jan 2016 2019|20 Not to date IFRS 16 establishes new rules for the recognition, measurement and presentation of leases. The standard provides only a single accounting model for the lessee, requiring the right of use to be recognised as the asset, and the obligation to be recognised as a liability, in the balance sheet. Capitalisation is optional only for underlying assets with a low value and for short-term leases with a term of less than twelve months. AGRANA is evaluating the extent to which IFRS 16 applies to existing rental agreements and how the right-of-use asset and the corresponding liability are to be measured for individual contracts and categories of contracts. Once this process is completed, the impacts on the financial position can be estimated. AGRANA only acts as a lessor to a very limited extent. As the dual accounting model of operating leases and finance leases remains in place for lessors, no accounting changes are expected for AGRANA as a lessor.

Various Annual Improvements to IFRSs 2012–2014 Cycle 25 Sep 2014 2016|17 15 Dec 2015 No material impacts on the presentation of the financial position, results of operations and cash flows are expected.

Restatements in accordance with IAS 8

From the beginning of the 2015|16 financial year, the presentation of the statement of comprehensive income was expanded by adding the line item "effects from equity-accounted joint ventures" within other comprehensive income. The new item represents the effects – recognised directly in equity – from equity-accounted joint ventures in the form of IAS 39 fair value movements, currency translation differences, and changes in actuarial gains and losses on defined benefit pension obligations and similar liabilities. Previously, these effects were included in the separate line items for IAS 39 fair value movements and currency translation differences and for changes in actuarial gains and losses on defined benefit pension obligations and similar liabilities. The consolidated statement of changes in equity was adjusted by the addition of a separate column containing the corresponding amounts, to be recognised directly in equity, of the IAS 39 fair value movements, translation differences and changes in actuarial gains and losses on defined benefit pension obligations and similar liabilities of equity-accounted joint ventures.

Changes in comparative information

In the 2015|16 financial year, currency translation gains or losses were for the first time presented on a gross basis in operating profit (EBIT) and in net financial items. For the 2014|15 comparative period this adjustment led to an increase in other operating income and other operating expenses of € 5,055 thousand and an increase in finance income and expense of € 41,204 thousand, compared to the published amounts.

As a result of an expansion of the treasury management system and an associated adaptation of recording processes, gains and losses on derivatives are since 2015|16 presented on a gross basis. For the 2014|15 comparative period, relative to the published amounts, this led to an increase of € 11,935 thousand in gains on derivatives and an increase of € 32,583 thousand in losses on derivatives, as well as a reduction of € 5,130 thousand in currency translation gains within net financial items and a reduction of € 25,778 thousand in translation losses in net financial items.

The presentation of employee numbers was changed from a headcount basis (average for the year) to full-time equivalents (average for the year).

In the cash flow statement, the interest, taxes and dividends representing cash flows are now presented separately and the foreign currency effects are allocated to the items to which they relate; the prior-year data have therefore been adjusted.

3. Scope of consolidation

The consolidated financial statements include, by full consolidation, all domestic and foreign companies controlled by AGRANA Beteiligungs-AG (i. e., all subsidiaries), except where the subsidiary's effect on the Group's financial position, results of operations and cash flows is immaterial. Control exists when AGRANA Beteiligungs-AG has the power to participate in positive and negative variable returns of a company (an investee) and has the ability to affect these returns and direct the investee's relevant activities through its power over the investee. This is usually given when AGRANA Beteiligungs-AG owns more than one-half of the voting rights of the investee.

Companies managed jointly with another entity, where control is exercised jointly and the investors have joint rights to the net assets of the investee, are joint ventures and are included in the consolidated financial statements using the equity method of accounting.

At the balance sheet date, 58 companies (prior year: 63) besides the parent were fully consolidated in the Group financial statements and 12 companies (prior year: 11) were included using the equity method.

An overview of the fully consolidated entities, equity-accounted joint ventures and other business interests is given beginning from page 125.

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The number of companies that were fully or proportionately consolidated changed as follows in the 2015|16 financial year:

Full
consolidation
Equity
method
At 1 March 2015 63 11
Initial consolidation 1 1
Merger (4) 0
Deconsolidation or derecognition (2) 0
At 29 February 2016 58 12

The 2015|16 financial year saw the initial consolidation of AGRANA Research & Innovation Center GmbH, Vienna, which until then had been a non-consolidated subsidiary because of its minor significance. A positive effect of € 3.6 million on initial consolidation – the difference between the acquired net assets and the acquisition cost – was recognised in other operating income. Additionally, AGRANA-STUDEN Albania sh.p.k, Tirana, Albania, was included in the accounts for the first time, using the equity method.

The effects at the date of initial consolidation of AGRANA Research & Innovation Center GmbH, Vienna, were as follows:

¤000 2015 16
Non-current assets 2,363
Current assets 4,998
Total assets 7,361
Equity 4,353
Non-current liabilities 1,888
Current liabilities 1,120
Current liabilities 7,361

The balance sheet amounts include € 4,781 thousand of amounts due from affiliated companies.

Two companies were deconsolidated: AGRANA URZICENI S.R.L., Bucharest, Romania, and AGRANA LIESTI S.R.L., Bucharest, Romania. The derecognition of the net assets of the two companies did not have a material impact on the consolidated balance sheet, and the result from the deconsolidation had no material effect on the consolidated income statement and statement of comprehensive income.

Joint ventures

The information below represents the aggregated financial position and performance of the joint ventures. The joint ventures are listed on page 127.

STUDEN HUNGRANA
¤000 group group Total
29 February 2016
Non-current assets 37,213 107,445 144,658
Inventories 33,879 35,146 69,025
Receivables and other assets 28,155 40,427 68,582
Cash, cash equivalents and securities 4,292 2,215 6,507
Current assets 66,326 77,788 144,114
Total assets 103,539 185,233 288,772
STUDEN HUNGRANA
¤000 group group Total
Equity 11,510 110,237 121,747
Borrowings 166 7,488 7,654
Other liabilities 253 5,944 6,197
Non-current liabilities 419 13,432 13,851
Borrowings 45,085 34,383 79,468
Other liabilities 46,525 27,181 73,706
Current liabilities 91,610 61,564 153,174
Total equity and liabilities 103,539 185,233 288,772
Revenue 189,093 318,377 507,470
Depreciation, amortisation and impairment losses (2,854) (12,607) (15,461)
Other (expense), net (183,197) (248,141) (431,338)
Operating profit [EBIT] 3,042 57,629 60,671
Interest income 707 49 756
Interest expense (1,607) (667) (2,274)
Other finance income/(expense) 848 546 1,394
Profit/(loss) before tax 2,990 57,557 60,547
Income tax benefit/(expense) 94 (11,595) (11,501)
Profit/(loss) for the period 3,084 45,962 49,046
Income or expense, net, recognised directly in equity 15 (4,216) (4,201)
Total comprehensive income for the period 3,099 41,746 44,845
28 February 2015
Non-current assets 39,716 106,727 146,443
Inventories 25,087 24,671 49,758
Receivables and other assets 29,505 62,532 92,037
Cash, cash equivalents and securities 4,888 21,815 26,703
Current assets 59,480 109,018 168,498
Total assets 99,196 215,745 314,941
Equity 8,412 160,292 168,704
Borrowings 157 10,497 10,654
Other liabilities 326 6,668 6,994
Non-current liabilities 483 17,165 17,648
Borrowings 40,505 10,666 51,171
Other liabilities 49,796 27,622 77,418
Current liabilities 90,301 38,288 128,589
Total equity and liabilities 99,196 215,745 314,941
Revenue 189,442 315,800 505,242
Depreciation, amortisation and impairment losses (3,134) (12,180) (15,314)
Other (expense), net (188,220) (235,942) (424,162)
Operating profit [EBIT] (1,912) 67,678 65,766
Interest income 116 55 171
Interest expense (1,634) (556) (2,190)
Other finance income/(expense) (412) (794) (1,206)
Profit/(loss) before tax (3,842) 66,383 62,541
Income tax benefit/(expense) 399 (12,196) (11,797)
Profit/(loss) for the period (3,443) 54,187 50,744
Income or expense, net, recognised directly in equity 312 3,599 3,911
Total comprehensive income/(expense) for the period (3,131) 57,786 54,655

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The calculation of the carrying amounts of the investments in equity-accounted joint ventures is tabulated below:

STUDEN HUNGRANA
¤000 group group Total
29 February 2016
Equity 11,510 110,237 121,747
Of which attributable to AGRANA 5,755 55,119 60,874
Goodwill 0 484 484
Impairment loss on goodwill at time of transition (452) 0 (452)
Investments in equity-accounted joint ventures
(carrying amount) 5,303 55,603 60,906
Dividend attributable to AGRANA 0 45,900 45,900
28 February 2015
Equity 8,412 160,292 168,704
Of which attributable to AGRANA 4,206 80,146 84,352
Goodwill 0 484 484
Impairment loss on goodwill at time of transition (452) 0 (452)
Investments in equity-accounted joint ventures
(carrying amount) 3,754 80,630 84,384
Dividend attributable to AGRANA 0 0 0

Non-controlling interests

Of the non-controlling interests of € 55,843 thousand (prior year: € 65,161 thousand), most represented the co-owners of the AUSTRIA JUICE group, at € 39,952 thousand (prior year: € 47,895 thousand). AGRANA's total interests in the AUSTRIA JUICE group amounted to 50.01%. Therefore, 49.99% of the equity of the AUSTRIA JUICE group must be reported as a non-controlling interest in AGRANA's consolidated financial statements.

The following table presents the financial position and performance of the AUSTRIA JUICE group:

29 Feb 28 Feb
AUSTRIA JUICE group ¤ooo 2016 2015
Non-current assets 131,452 138,535
Current assets 228,422 200,569
Total assets 359,874 339,104
Non-current liabilities 6,668 8,575
Current liabilities 266,007 227,439
Total liabilities 272,675 236,014
Net assets 87,199 103,090
Revenue 212,082 257,137
Operating profit [EBIT] 443 15,331
Profit before tax (4,234) 11,760
Income tax expense (1,746) (1,850)
(Loss)/profit for the period (5,980) 9,910
(Expense) recognised directly in equity (2,917) (461)
Total comprehensive (expense)/income for the period (8,897) 9,449
Net cash from operating activities 57,729 5,627
Net cash (used in) investing activities (7,242) (11,869)
Net cash (used in)/from financing activities (51,810) 23,375
Net (decrease)/increase in cash and cash equivalents (1,323) 17,133

The table below shows the interests of the non-controlling shareholders in the AUSTRIA JUICE group:

AUSTRIA JUICE group ¤000 29 Feb
2016
28 Feb
2015
Non-controlling interests in:
Profit for the period (2,990) 4,954
Dividends 3,499 3,499
Carrying amount of net assets 43,591 51,535
Goodwill (3,639) (3,640)
Net assets 39,952 47,895

3.1. Balance sheet date

The balance sheet date (reporting date) of the consolidated financial statements is the last day of February. Group companies with other reporting dates prepare interim financial statements at the Group reporting date.

4. Consolidation methods

█ Acquisitions of companies that are fully consolidated are accounted for using the acquisition method in accordance with IFRS 3. Where a business combination entails the possible recognition of intangible assets not previously recognised in the separate financial statements of the acquired company, such as customer relationships, these are recognised only when the requirements under IAS 38 for capitalisation are met. For acquisitions of a majority interest rather than a 100% stake in a company, IFRS 3 provides an accounting policy choice as to how to measure the resulting non-controlling interests. The non-controlling interests may be measured either at their proportionate share of the fair value of the net assets of the acquiree (partial goodwill method) or at their proportionate share of goodwill (full goodwill method). This choice is available individually for each business combination. The full goodwill method has not been applied in the AGRANA Group to date.

█ The investments in joint ventures are accounted for using the equity method and are included in the consolidated financial statements from the time of acquisition, provided that the requirements for the application of IFRS 11 (Joint Arrangements) are met. Profits or losses resulting from transactions of the AGRANA Group with a joint venture are eliminated to the extent of the Group's interest in the joint venture.

█ Intragroup revenues, expenses and income and all receivables and payables or provisions between the consolidated companies are eliminated. In assets that arise from intragroup flows of products or services and are included in non-current assets or in inventories, intragroup balances are eliminated.

5. Currency translation

█ Financial statements of foreign Group companies are translated into euros in accordance with IAS 21. The functional currency of every Group company is its respective national currency. Assets and liabilities are translated at the ECB reference rates of exchange or other published reference rates at the balance sheet date (i.e., at period-end rates). Foreign currency transactions are translated into the functional currency at the exchange rates prevailing at the transaction date. Expenses and income are translated at annual average rates of exchange (the mean of the daily rates of the ECB or national banks), with the exception of the currency translation gains and losses from the measurement of receivables and liabilities related to Group financing.

█ Differences compared to prior-year amounts arising from the translation of balance sheet items at current balance sheet date exchange rates or arising from the use of average rates in translating expenses and income compared to the use of current balance sheet date rates are recognised in other comprehensive income. Specifically, they are presented in the statement of other comprehensive income as currency translation differences related to consolidation.

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█ Foreign currency-denominated gains and losses on the measurement of foreign currency financing liabilities are translated at exchange rates at the balance sheet date if the average rate is deemed unsuitable as a result of sustained exchange rate volatility.

█ In translating the financial statements of foreign Group companies, the following exchange rates were applied:

Rate at reporting date Average rate for year
Currency 29 Feb 28 Feb
¤ 2016 2015 2015 16 2014 15
Albania ALL 138.24 139.43
Argentina ARS 17.18 9.77 11.22 10.72
Australia AUD 1.53 1.44 1.49 1.46
Bosnia-Herzegovina BAM 1.96 1.96 1.96 1.96
Brazil BRL 4.34 3.26 3.90 3.10
Bulgaria BGN 1.96 1.96 1.96 1.96
Czech Republic CZK 27.06 27.44 27.17 27.58
China CNY 7.14 7.05 6.98 8.00
Croatia HRK 7.63 7.69 7.61 7.64
Denmark DKK 7.46 7.47 7.46 7.45
Egypt EGP 8.54 8.61 8.54 9.27
Fiji FJD 2.35 2.29 2.34 2.47
Hungary HUF 311.26 303.03 310.04 309.59
Macedonia MKD 61.70 61.51 61.64 61.60
Mexico MXN 19.80 16.87 18.11 17.48
Morocco MAD 10.78 10.80 10.82 11.10
Poland PLN 4.36 4.15 4.21 4.19
Romania RON 4.48 4.44 4.45 4.44
Russia RUB 82.64 69.20 69.79 55.51
Serbia CSD 123.50 120.33 120.85 118.30
South Africa ZAR 17.46 13.07 14.87 14.14
South Korea KRW 1,347.54 1,236.16 1,267.46 1,365.73
Turkey TRY 3.23 2.83 3.11 2.86
Ukraine UAH 29.78 31.42 24.98 17.70
USA USD 1.09 1.12 1.10 1.29

6. Accounting policies

6.1. Intangible assets and property, plant and equipment

█ Purchased intangible assets (other than goodwill) are capitalised at cost and amortised on a straight-line basis over their expected useful lives of between 5 and 15 years. Almost all intangible assets other than goodwill have a determinable useful life. Those intangible assets having an indefinite useful life are not material for the Group.

█ Goodwill is not amortised, but is reviewed at least annually for impairment. Details on this impairment test are presented in the notes to the balance sheet.

█ Product development costs are capitalised at cost if they can be accurately allocated to a product and if both the technical feasibility and the marketing of the new product are assured. In addition, the development work must be sufficiently likely to generate future cash inflows. Items of property, plant and equipment are valued at cost of purchase and/or conversion, less straight-line or campaign-based depreciation and impairment losses. Besides materials and labour costs, prorated overheads are capitalised in the conversion costs of internally generated assets. Borrowing costs directly attributable to the production of an asset that are incurred during the production period are capitalised in accordance with IAS 23. All other borrowing costs are recognised as an expense in the period during which they are incurred. Maintenance costs are expensed as incurred, unless they result in an expansion or significant improvement of the asset concerned, in which case they are capitalised.

█ Where rental agreements or leases transfer all material risks and rewards of ownership to the AGRANA Group (finance leases), the assets rented or leased are recorded as an asset. The asset is initially measured at the lower of (i) its fair value at the inception of the rental period or lease and (ii) the present value of the future minimum rental or lease payments. This amount is simultaneously recorded as a liability under borrowings.

█ Depreciation of property, plant and equipment is generally based on the following useful lives:

Buildings 15 to 50 years
Plant and machinery 10 to 15 years
Office furniture and equipment 3 to 10 years

6.2. Government assistance

█ Government assistance to reimburse the Group for costs is recognised as other operating income in the period in which the related costs are incurred, unless the assistance is contingent on conditions that are not yet sufficiently likely to be met.

█ Government assistance to support capital expenditure is recognised as deferred income from the time of the binding award and deducted from the cost of the intangible assets and property, plant and equipment on a straightline basis over the useful life of the allocated asset through profit and loss. Details are provided from page 94.

6.3. Financial instruments

█ The AGRANA Group distinguishes the following classes of financial instruments:

Financial assets

  • Securities, and investments in non-consolidated subsidiaries and outside companies
  • Trade receivables
  • Other financial assets
  • Cash and cash equivalents

Financial liabilities

  • Bank loans and overdrafts, and other loans from non-Group entities
  • Borrowings from affiliated companies in the Südzucker group
  • Finance lease obligations
  • Trade payables
  • Financial other payables

Derivative financial instruments

  • Interest-rate derivatives
  • Currency derivatives
  • Commodity derivatives

█ Investments in non-consolidated subsidiaries and outside companies, as well as securities, are classified to the available-for-sale category and are initially measured at fair value in the case of securities, and at cost in the case of investments in non-consolidated subsidiaries and outside companies, including any transaction costs. Subsequent measurement is at fair value. Changes in value are recognised outside profit or loss (after income tax) in a separate reserve item in equity. Only after the cumulative changes in fair value are realised by selling the asset are they recognised in the income statement. Available-for-sale non-material investments in non-consolidated subsidiaries and outside companies are measured at cost.

█ Financial assets are recognised at the settlement date.

█ Cash and cash equivalents include cash on hand and bank deposits having a remaining term to maturity of up to three months at the time of investment. Cash and cash equivalents in foreign currency are measured at the exchange rates at the balance sheet date.

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Derivative financial instruments

█ Derivative financial instruments are used to hedge risks from changes in interest rates, exchange rates and commodity prices. Derivatives are carried as an asset or liability and, irrespective of their purpose, are measured at fair value. Changes in their fair value are recognised through profit or loss in other operating income/expenses (for commodity derivatives and currency derivatives related to purchase and sales transactions) or in net financial items (for interest rate derivatives and currency derivatives related to financings), unless the derivatives are used to hedge an underlying transaction (cash flow hedges). Where the conditions for cash flow hedge accounting under IAS 39 are met, the unrealised effective changes in fair value are recognised directly in equity. They are reclassified from equity to profit or loss in the period in which the underlying hedged transaction affects profit or loss. Ineffective portions of the valuation gains or losses on cash flow hedges are recognised in the income statement immediately. Derivatives are classified as held for trading, except for derivatives in a hedging relationship with a hedged item that qualify for cash flow hedge accounting. More information on derivative financial instruments is provided on page 107.

Receivables

█ Receivables are initially recognised at fair value and subsequently measured at amortised cost. Non-interestbearing receivables with a remaining maturity of more than one year are recognised at their present value using the effective interest method. For default risks or other risks contained in receivables, sufficient impairment provisions are individually allowed. Receivables that are individually immaterial, and receivables with similar default risk, are grouped together and impairment is recognised on the basis of historical experience. The face amounts of the receivables net of necessary impairment provisions represent the fair values. Irrecoverable receivables are derecognised on an individual case-by-case basis. If the reasons for an impairment provision cease to apply, the impairment loss is reversed, to no more than the asset's historical cost.

█ Foreign currency receivables are measured at the exchange rates at the balance sheet date.

Payables

█ Borrowings are initially measured at their actual proceeds. Premiums, discounts or other differences between the proceeds and the repayment amount are realised over the term of the instrument by the effective interest method and recognised in net financial items (at amortised cost).

█ Trade payables are initially measured (at inception of the liability) at the fair value of the goods or services received. Subsequently these payables are measured at amortised cost. Other payables not resulting from the receipt of goods or services are measured at their payable amount.

█ Payables denominated in foreign currencies are recognised at the exchange rates at the balance sheet date.

6.4. Inventories

█ Inventories are measured at the lower of cost of purchase and/or conversion and net selling price. The weighted average cost formula is used. In accordance with IAS 2, the conversion costs of unfinished and finished products include – in addition to directly attributable unit costs – reasonable proportions of the necessary material costs and production overheads inclusive of depreciation of manufacturing plant (based on the assumption of normal capacity utilisation) as well as production-related administrative costs. Financing costs are not taken into account. To the extent that inventories are at risk as a result of prolonged storage or reduced saleability, a write-down is recognised.

6.5. Emission allowances

█ Emission rights are accounted for in accordance with IAS 38 (Intangible Assets), IAS 20 (Accounting for Government Grants and Disclosure of Government Assistance) and IAS 37 (Provisions, Contingent Liabilities and Contingent Assets). Emission allowances are issued for a given calendar year and are intangible assets for the purposes of IAS 38 that, except as noted below, are to be classified as current assets. They are assigned a cost of zero. From the point when emissions exceed allocated allowances (one allowance represents one tonne of carbon dioxide), a provision for CO2 emissions must be established for actual additional emissions and recognised in the income statement. The provision is calculated by taking into account the cost incurred for purchased emission allowances or any excess of their market value at the measurement date over their cost. CO2 emission allowances that have already been purchased for use in a subsequent trading period are recorded in non-current assets.

6.6. Impairment

█ Assets (other than inventories and deferred tax assets) are tested at every balance sheet date for evidence of impairment. Goodwill and other intangible assets with an indefinite useful life are reviewed for impairment annually at 31 August regardless of whether there is indication of possible impairment.

█ The impairment test involves determining the asset's recoverable amount. The recoverable amount is the higher of an asset's value in use and its net selling price. If the asset's recoverable amount is less than its carrying amount, the difference is expensed as an impairment loss in the income statement.

█ An asset's value in use is the present value of the estimated future cash flows from the asset's continuing use and from its disposal at the end of its useful life. The discount rate used in determining present value is a pre-tax market rate adjusted for the specific risks of the asset concerned. Where no largely independent cash inflows can be determined, value in use is determined for the next-larger unit (the cash generating unit) to which the asset belongs and for which largely independent cash inflows can be determined.

█ Where an impairment loss later decreases or is eliminated, the amount of the reversal of the impairment loss (except in the case of goodwill and equity-like securities classified as "available-for-sale") is recognised as income in the income statement up to the lower of amortised original cost and value in use. Impairment losses on goodwill are not reversed.

6.7. Employee benefit obligations

█ The AGRANA Group maintains both defined contribution and defined benefit plans for pensions and termination benefits. Under the defined contribution pension and termination benefit arrangements, AGRANA has no further obligation after paying the agreed premium. Contributions to defined contribution plans are recognised as an expense when they fall due, and are reported in staff costs. Contributions paid to government plans are treated in the same manner as those paid to defined contribution plans. As the Group has no payment obligations beyond making the contributions, no provision is maintained.

█ The provisions for defined benefit pension, termination and long-service obligations are calculated using the projected unit credit method in accordance with IAS 19 (Employee Benefits), based on actuarial valuations. This involves determining the present value of the defined benefit obligation and comparing it to the fair value of plan assets at the balance sheet date. In the case of a deficit, a provision is recorded; in the case of a surplus, an asset (other receivable) is recorded. The defined benefit obligation is measured by the projected unit credit method. Under this method, the future payments determined on the basis of realistic assumptions are accumulated over the period during which the respective beneficiaries acquire the entitlement to these benefits.

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83

• • • •

█ Service cost is recognised in staff costs. Besides the current service cost for the benefits newly earned by staff every year, it may also include past service cost arising from plan curtailments or changes, which is recognised immediately in profit or loss for the period. The net interest cost for the financial year is calculated by applying the discount rate determined at the beginning of the year to the net pension obligation determined at that time, taking into account the expected payment outflows. Net interest is recognised in finance expense.

█ Actuarial gains and losses arising from changes in actuarial assumptions or from differences between previous actuarial assumptions and observed outcomes are recognised directly in equity in the period in which they occur, along with their effect on deferred taxes (with the exception of obligations for long-service awards). Correspondingly, the full amount of the obligation is recognised in the balance sheet. The changes in actuarial gains and losses recognised in the respective period are presented separately on the face of the statement of comprehensive income. Actuarial gains and losses previously recognised directly in equity cannot be reclassified to profit or loss in subsequent periods. The recognition in other comprehensive income also includes the differences between (i) the interest income on plan assets based on the discount rate and included in net interest and (ii) the actual return on plan assets determined at the end of the period.

█ The calculation is based on extrapolated future trends in salaries, retirement benefits and employee turnover, as well as a discount rate of predominantly 1.8% for the year under review (prior year: 1.4%).

█ A portion of pension obligations was transferred to pension funds. The retirement benefit contributions to be paid are calculated so as to fully fund the retirement benefit obligation at the time of retirement. If a plan deficit occurs, there is an obligation to fund the shortfall. The Group also holds benefit insurance policies to secure its ability to meet obligations under pension and termination benefit plans. The individual assets allocated to the pension plan are netted against the present value of the pension obligation to arrive at the net obligation. The individual assets allocated to the pension plan are netted against the present value of the pension obligation to arrive at the net obligation. Likewise, the qualifying insurance policies are treated as plan assets in reducing the present value of the respective pension and termination benefit obligation.

6.8.Other provisions

█ Other provisions are recognised where the following conditions are met: the AGRANA Group has a legal or constructive obligation to a third party as a result of a past event, the obligation is likely to lead to an outflow of resources, and whether the amount of the obligation can be reliably estimated.

█ Provisions are measured at the amount representing the best estimate of the expenditure required to settle the obligation. If the present value of the obligation determined on the basis of a market interest rate differs materially from its nominal amount, the present value of the obligation is used.

█ The risks arising from contingent liabilities are covered by sufficient provisions.

█ Provisions for reclamation comprise obligations for reclamation of properties, emptying and rehabilitation of landfills, remediation or restoration of building structures, legacy soil reclamation and removal of waste residues.

█ "Provisions for staff costs including long-service awards" also include provisions for phased retirement, provisions for redundancy benefit plans under restructuring projects, provisions for bonuses and awards, and other personnelrelated provisions. Under IAS 19, long-service awards are classified as long-term employee benefits. These are determined by the projected unit credit method. Actuarial gains and losses are reported in the current period in staff costs. Long-service awards are one-time payments dependent on level of salary or wage and length of service and are stipulated under local company agreements or of collective agreements. Obligations for the payment of such service anniversary bonuses exist especially in Austria and Germany. In Austria, provisions for phased retirement must

be created as a result of labour laws regarding obligations to employees. The legislation concerning phased retirement makes it easier for companies to employ older staff members working reduced hours with substantial financial security until full retirement. Provisions for redundancy benefit plans under restructurings are created only if a formal, detailed restructuring plan has been prepared and communicated.

█ Provisions for uncertain liabilities include, among other items, provisions for litigation risks, onerous contracts, costs of beet receiving, loading and storage, and other uncertain liabilities. A provision for onerous (loss-making) contracts is recognised if the expected economic benefit from a contract is less than the unavoidable cost of fulfilling the contract.

6.9. Deferred taxes

█ Deferred taxes are recognised on temporary differences between the IFRS carrying amounts of assets and liabilities and the tax base; on consolidation entries; and on tax loss carryforwards expected to be utilised. Significant differences exist between the IFRS carrying amounts and the tax base for property, plant and equipment, inventories and provisions. Deferred tax assets are recognised for unused tax loss carryforwards insofar as these are expected to be utilised within five years.

█ Deferred taxes are calculated by the liability method (under IAS 12), based on the pertinent national income tax rates. Consequently, with the exception of goodwill arising on consolidation, deferred taxes are recognised for all temporary differences between the IFRS balance sheet and the tax base, to the extent that deferred tax assets are likely to be realised.

█ When income and expenses are recognised directly in equity, the respective deferred tax assets and liabilities are also taken directly to equity. The assessment of the recoverability of deferred tax assets arising from temporary differences and from tax loss carryforwards takes into account company-specific forecasts of, for instance, the future earnings situation in the respective Group company. Deferred tax assets are recognised only if the associated tax benefits are expected to be realisable over a five-year planning horizon. This is the case if sufficient profits can be earned or if there is sufficient taxable income from the reversal of temporary differences previously recognised as liabilities.

█ Deferred tax assets are classified as non-current assets; deferred tax liabilities are recorded as non-current liabilities. Deferred tax assets are off set against deferred tax liabilities if they relate to the same tax authority.

█ The income tax reported represents the tax levied in the individual countries on taxable income, and the movement in deferred taxes.

6.10. Recognition of revenue and costs

█ Revenue from goods sold is recognised when substantially all risks and rewards incident to ownership have passed to the purchaser. Revenue from services provided is recognised to the extent that the services have been rendered by the balance sheet date.

█ Operating expenses are recognised in the income statement upon use of the product or service or as incurred.

█ Finance expenses comprise the interest expense, similar expenses and transaction costs on borrowings including finance leases; financing-related currency translation gains and losses; and financing-related hedging gains and losses.

█ Income from financial investments represents interest, dividend and similar income realised from cash-equivalent investments and investments in other financial assets; gains and losses on the disposal of financial assets; and impairment losses and impairment loss reversals.

█ Interest income is recognised on an accrual basis using the effective interest method. Dividend income is recognised at the time of the decision to pay the dividend.

• • • • • • • • •

85

• • • •

6.11. Critical assumptions and judgements

█ The preparation of these consolidated financial statements in accordance with IFRS requires the Company's management to make judgements and to act on assumptions about future developments. These judgements and assumptions can have a material effect on the recognition and measurement of the assets and liabilities, the disclosure of other liabilities at the balance sheet date, and the amounts of income and expenses reported for the financial year.

█ The following assumptions involve a not insignificant risk that they may lead to a material change in the carrying amounts of assets and liabilities in the next financial year:

  • The impairment testing of goodwill (carrying amount at 29 February 2016: € 226,202 thousand), other intangible assets (carrying amount at 29 February 2016: € 15,759 thousand) and property, plant and equipment (carrying amount at 29 February 2016: € 679,592 thousand) is based on forward-looking assumptions. The determination of the recoverable amounts for the purpose of the impairment review involves several assumptions, such as regarding future net cash flows and the discount rate. The net cash flows are the amounts in the most current cash flow forecast for the cash generating units (CGUs) for the next five years (most current at the time of the regular impairment test date of 31 August). Shortly before the balance sheet date, a new cash flow forecast was presented to the Supervisory Board, which did not contain potential triggering events that would indicate an impairment.
  • It was determined through a simulation that a hypothetical reduction of 5% in sustainable cash flows would not lead to an impairment of goodwill.
  • The discount rate before tax varies by industry, company risk level and specific market environment; in the financial year it ranged from 6.11% to 10.48% (prior year: 6.30% to 10.36%).
  • An increase of 0.5 percentage points in the weighted average cost of capital (WACC) would not lead to impairment. Financial instruments for which no active market exists are reviewed for impairment by using alternative discounting-based valuation methods. The inputs used for the determination of fair value are based in part on assumptions concerning the future.
  • The measurement of existing retirement and termination benefit obligations (carrying amount at 29 February 2016: € 67,146 thousand) involves assumptions regarding discount rate, age at retirement, life expectancy, employee turnover and future increases in pay and benefits.
  • The sensitivity analysis below is based on varying one assumption at a time with the other assumptions remaining unchanged from the original calculation. Potential correlation effects between assumptions are thus not taken into account. The changes in assumptions would have the following effects on the present values of the obligations stated in note 25a:
Pension benefits Termination benefits
29 Feb 28 Feb 29 Feb 28 Feb
¤000 2016 2015 2016 2015
Changes in actuarial assumptions
Discount rate
+0.5 percentage points (2,572) (2,663) (1,720) (1,842)
–0.5 percentage points 2,829 2,939 1,865 2,003
Wage and salary increase
+0.25 percentage points 92 86 905 969
–0.25 percentage points (91) (84) (872) (932)
Pension increase
+0.25 percentage points 1,205 1,271
–0.25 percentage points (1,157) (1,219)
Life expectancy
Increase by 1 year 4,069 4,194
Decrease by 1 year (4,202) (4,329)
  • The recognition of deferred tax assets (carrying amount at 29 February 2016: € 14,873 thousand) is based on the assumption that sufficient taxable profit will be earned over the five-year planning horizon to realise them.
  • The off-balance sheet obligations from financial guarantees and from other contingent liabilities, and any reductions in these obligations, are regularly reviewed as to whether they require recognition in the balance sheet.
  • In determining the amount of other provisions (carrying amount at 29 February 2016: € 48,425 thousand), management exercises judgement as to whether AGRANA is likely to incur an outflow of resources from the obligation concerned and whether the amount of the obligation can be estimated reliably.

█ The HUNGRANA group and the STUDEN group were classified as joint ventures in accordance with IFRS 11 and the agreements existing at the time. The AGRANA Group holds 50% of the share capital of the joint ventures.

█ The AGRANA Group holds 50.01% of the share capital of AUSTRIA JUICE GmbH and is subsidiaries. As a result of the underlying contracts and arrangements, AGRANA exercises control over these companies and fully consolidates them in the Group accounts.

7. Notes to the consolidated income statement

7.1. Revenue Note (1)

¤000 2015 16 2014 15
By nature of activity
Revenue from sale of finished goods 2,220,995 2,275,633
Revenue from sale of goods purchased for resale 246,094 202,104
Service revenue 10,558 15,775
Total 2,477,647 2,493,512

The regional analysis of revenue is presented in the Segment reporting section (beginning on page 67).

The Group's top ten customers accounted for 27% (prior year: 26%) of consolidated revenue. One AGRANA customer accounted for 12% (prior year: less than 10%) of consolidated revenue. No other customer represented more than 10% of revenue.

7.2. Change in inventories and own work capitalised Note (2)

¤000 2015 16 2014 15
Changes in inventories of finished and unfinished goods 25,183 (76,133)
Own work capitalised 1,523 1,375

The net increase of € 25,183 thousand in inventories of finished and unfinished goods (prior year: decrease of € 76,133 thousand) reflected mainly the Sugar segment, at a decrease of € 14,965 thousand (prior year: decrease of € 36,643 thousand), and the Fruit segment (particularly the juice activities), with an increase of € 39,520 thousand (prior year: decrease of € 37,420 thousand).

• • • • • • • • •

87

• • • •

7.3.Other operating income Note (3)

¤000 2015 16 2014 151
Income from:
Currency translation gains 11,356 11,450
Insurance benefits and payments for damages 4,596 1,426
Derivatives 3,882 3,481
Non-recurring gain on initial consolidation 3,590 0
Services rendered to third parties 1,773 2,614
Beet and pulp cleaning, transport and handling 1,068 1,437
Rent and leases 1,010 1,255
Disposal of non-current assets other than financial assets 438 1,136
Exceptional income 65 1,002
Other items 16,309 14,541
Total 44,087 38,342

Within other operating income, "other items" represent, for instance, revenue from the pass-through of costs for consumables, raw materials and benefits in kind.

7.4. Cost of materials Note (4)

¤000 2015 16 2014 15
Costs of
Raw materials 1,120,260 1,017,420
Consumables and goods purchased for resale 603,728 621,512
Purchased services 59,735 64,748
Total 1,783,723 1,703,680

7.5. Staff costs Note (5)

¤000 2015 16 2014 15
Wages and salaries 223,196 222,275
Social security contributions, retirement benefit expenses
and other staff costs 62,500 59,779
Total 285,696 282,054

The expense for the unwinding of discount on the pension and termination benefits newly accrued in prior years, less the return on plan assets, is included within net financial items. The interest component, at € 1,010 thousand (prior year: € 1,962 thousand) is included in net financial items. The current and past service costs are included in staff costs.

In the 2015|16 financial year an expense of € 16,170 thousand (prior year: € 15,839 thousand) was recognised for contributions to government pension plans.

€ 949 thousand of contributions to a defined contribution termination benefit fund were recognised in the income statement for the year (prior year: € 920 thousand).

Wages and salaries included € 1,587 thousand of exceptional items (prior year: € 5,151 thousand).

Average number of employees during the financial year (average full-time equivalents)

2015 16 2014 151
By employee category
Wage-earning staff 6,078 6,128
Salaried staff 2,345 2,341
Apprentices 87 81
Total 8,510 8,550
2015 16 2014 151
By region
Austria 2,061 2,076
Hungary 432 469
Romania 645 669
Rest of EU 1,574 1,609
EU-28 4,712 4,823
Rest of Europe (Bosnia-Herzegovina, Russia, Serbia, Turkey, Ukraine) 1,313 1,290
Other foreign countries 2,485 2,437
Total 8,510 8,550

The average number of employees of joint ventures in full-time equivalents over the year was as follows (reported at company totals, not proportionately):

2015 16 2014 151
By employee category
Wage-earning staff 289 313
Salaried staff 179 184
Total 468 497

7.6. Depreciation, amortisation and impairment Reversal Note (6)

Amorti-
sation,
depre-
Impair-
ment
of
impair
ment
¤000 Total ciation losses losses
2015 16
Intangible assets 7,282 7,282 0 0
Property, plant and equipment 77,189 77,501 509 (821)
Recognised in operating profit before exceptional items
and results of equity-accounted joint ventures 84,471 84,783 509 (821)
Exceptional items 910 0 910 0
Recognised in operating profit [EBIT] 85,381 84,783 1,419 (821)
Financial assets 8 8 0 0
Recognised in net financial items 8 8 0 0
Total 85,389 84,791 1,419 (821)
2014 15
Intangible assets 6,247 6,247 0 0
Property, plant and equipment 73,652 74,340 10 (698)
Recognised in operating profit before exceptional items
and results of equity-accounted joint ventures 79,899 80,587 10 (698)
Exceptional items 166 0 166 0
Recognised in operating profit [EBIT] 80,065 80,587 176 (698)
Total 80,065 80,587 176 (698)

• • • • • • • • •

89

• • • •

Impairment losses and reversals of impairment losses, by segment, were as follows:

Reversal
of
Impair- impair
ment ment
¤000 losses losses
2015 16
Sugar segment 509 (17)
Starch segment 0 (804)
Fruit segment 910 0
Group 1,419 (821)
2014 15
Sugar segment 10 (10)
Starch segment 0 (688)
Fruit segment 166 0
Group 176 (698)

The impairment losses in the Sugar segment related principally to expenses for derecognition of assets resulting from their technical non-realisation. The impairment losses in the Fruit segment related to the costs for the closure of a production site in Belgium and a farm in Morocco, which are presented in exceptional items. The reversal of impairment losses in the Starch segment related to a drum drying plant in Austria which had been written down in the 2009|10 financial year to its value in use. A discount rate of 6.16% was used at the balance sheet date to determine the value in use.

7.7.Other operating expenses Note (7)

¤000 2015 16 2014 151
Selling and freight costs 136,159 135,423
Operating and administrative expenses 91,958 94,235
Currency translation losses 10,860 5,055
Rent and lease expenses 8,476 7,397
Advertising expenses 8,338 8,044
Other taxes 6,657 6,879
Production levy 3,774 3,770
Derivatives 2,594 4,296
Losses on disposal of non-current assets 2,040 2,297
Lease expenses 1,489 1,686
Damage payments 924 1,504
Research and development expenses (external) 917 4,498
Exceptional items 622 1,049
Other items 14,400 18,817
Total 289,208 294,950

Internal and external R&D costs totalled € 14,911 thousand (prior year: € 14,520 thousand). The reduction in external research and development expenses resulted from the initial consolidation of AGRANA Research & Innovation Center GmbH, Vienna.

Within other operating expenses, "other items" included, for instance, provisions and other purchased services.

The costs incurred in the financial year for external auditor KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft were € 468 thousand (prior year: € 666 thousand). Of this total, € 447 thousand (prior year: € 454 thousand) related to the audit of the consolidated financial statements (including the audit of the separate financial statements of individual subsidiaries), € 8 thousand (prior year: € 18 thousand) was for other assurance services, and € 13 thousand (prior year: € 194 thousand) represented other non-audit services.

7.8. Share of results of equity-accounted joint ventures Note (8)

The share of results of equity-accounted joint ventures of € 24,523 thousand (prior year: € 25,372 thousand) included the Group's share of the profits or losses of the joint ventures in the HUNGRANA group and the STUDEN group.

7.9.Operating profit (EBIT) Note (9)

¤000 2015 16 2014 15
Operating profit before exceptional items and results
of equity-accounted joint ventures 107,486 102,017
Exceptional items (3,054) (5,670)
Share of results of equity-accounted joint ventures 24,523 25,372
Total 128,955 121,719

Exceptional items – separately presented only in the section "Segment information" – consisted of expenses for the closure of a production site in Belgium and a farm in Morocco, as well as expenses for a strategy-and-organisation project in the Fruit segment. The related amounts recognised in the consolidated income statement were € 65 thousand (prior year: € 1,002 thousand) within other operating income, € 1,587 thousand (prior year: € 5,151 thousand) within staff costs, € 910 thousand (prior year: € 166 thousand) within depreciation, amortisation and impairment losses, and € 622 thousand (prior year: € 1,049 thousand) within other operating expenses.

7.10. Finance income Note (10)

¤000 2015 16 2014 151
Interest income 9,724 9,905
Currency translation gains 12,271 44,790
Income from non-consolidated subsidiaries and outside companies 37 769
Gains on derivatives 21,373 12,609
Miscellaneous finance income 384 647
Total 43,789 68,720

Interest income by segment was as follows:

¤000 2015 16 2014 15
Sugar segment 8,099 8,412
Starch segment 111 72
Fruit segment 1,514 1,421
Group 9,724 9,905

7.11. Finance expense Note (11)

¤000 2015 16 2014 151
Interest expense 17,668 17,061
Net interest on provisions for pensions and termination benefits 1,010 1,962
Currency translation losses 24,515 15,427
Expenses from non-consolidated subsidiaries and outside companies 9 0
Losses from derivatives 22,074 35,283
Miscellaneous finance expense 3,032 4,227
Total 68,308 73,960

• • • • • • • • •

91

• • • •

Interest expense by segment was as follows:

¤000 2015 16 2014 15
Sugar segment 15,818 14,465
Starch segment 23 61
Fruit segment 1,827 2,535
Group 17,668 17,061

Interest expense includes the interest component of € 98 thousand (prior year: € 179 thousand) from the discounting of the non-current obligation for long-service awards.

Net currency translation differences on financing activities amounted to a loss of € 12,244 thousand (prior year: gain of € 29,363 thousand). This was composed of a realised loss of € 1,211 thousand (prior year: realised gain of € 20,554 thousand) and an unrealised loss of € 11,033 thousand (prior year: unrealised gain of € 8,809 thousand). The net loss was attributable largely to movements in exchange rates for the currencies of Ukraine, Brazil, Mexico and Russia.

7.12. Income tax expense Note (12)

Current and deferred tax expenses and credits pertained to Austrian and foreign income taxes and had the following composition:

¤000 2015 16 2014 15
Current tax expense 22,698 25,055
Of which Austrian 4,422 6,723
Of which foreign 18,276 18,332
Deferred tax expense/(income) 810 6,846
Of which Austrian 2,991 (3,468)
Of which foreign (2,181) 10,314
Total tax expense 23,508 31,901
Of which Austrian 7,413 3,255
Of which foreign 16,095 28,646

Reconciliation of the deferred tax amounts in the balance sheet to the deferred taxes in the income statement:

¤000 2015 16 2014 15
(Decrease) in deferred tax assets in the consolidated balance sheet (7,311) (8,082)
Decrease in deferred tax liabilities in the consolidated balance sheet 5,943 2,178
Total change in deferred taxes before changes in scope of consolidation (1,368) (5,904)
Of which recognised in OCI1 (remeasurement, cash flow hedges and IAS 19) 802 2,190
Of which currency translation, and other (1,360) (1,248)
Of which recognised in the income statement (810) (6,846)
¤000 2015 16 2014 15
Profit before tax 104,436 116,479
Standard Austrian tax rate 25% 25%
Nominal tax expense at standard Austrian rate 26,109 29,120
Tax effect of:
Different tax rates applied on foreign income (122) (326)
Tax-exempt income and tax deductions, including results
of equity-accounted joint ventures (6,756) (7,858)
Non-tax-deductible expenses and additional tax debits 2,180 2,426
Effects of unrecognized tax loss carryforwards in respect of the financial year 2,197 4,693
Effects of impairment of deferred taxes 97 6,130
Non-recurring tax expenses (197) 496
Non-temporary differences resulting from consolidation 0 (2,780)
Income tax expense 23,508 31,901
Effective tax rate 22.5% 27.4%

Reconciliation of profit before tax to income tax expense

The nominal tax charge or credit is based on application of the standard Austrian corporation tax rate of 25%.

The Tax Reform Act of 2005 introduced a new concept for the taxation of company groups. In accordance with the provisions of this Act, the AGRANA Group established a group consisting of AGRANA Beteiligungs-AG as the group parent and the following group members: AGRANA Zucker GmbH, AGRANA Stärke GmbH, AGRANA Marketingund Vertriebsservice Gesellschaft m.b.H., AGRANA Internationale Verwaltungs- und Asset-Management GmbH, AGRANA Group-Services GmbH, INSTANTINA Nahrungsmittel Entwicklungs- und Produktionsgesellschaft m.b.H. and AUSTRIA JUICE GmbH.

Deferred taxes are recognised on differences between carrying amounts in the consolidated financial statements and the tax bases of the individual companies in their home countries. Deferred taxes take into account carryforwards of unused tax losses.

In the interest of conservative planning, deferred taxes reflect carryforwards of tax losses only to the extent that sufficient taxable profit is likely to be earned over the next five years to utilise the deferred tax assets. € 16,075 thousand (prior year: € 14,305 thousand) of potential tax assets were not recognised. These related to cumulative unused tax loss carryforwards of € 72,412 thousand (prior year: € 66,306 thousand). Of the unused tax loss carryforwards, € 25,568 thousand (prior year: € 18,606 thousand) can be carried forward indefinitely, € 20,851 thousand (prior year: € 0) expire in two to four years, € 17,020 thousand (prior year: € 38,734 thousand) expire in five to seven years and € 8,973 thousand (prior year: € 8,966 thousand) expire in the 2017 calendar year.

At the balance sheet date the deferred tax assets and liabilities recognised directly in equity amounted to a net asset of € 7,198 thousand (prior year: € 6,396 thousand).

For temporary differences on investments in subsidiaries, deferred tax liabilities of € 191,574 thousand (prior year: € 193,502 thousand) were not recognised, as these gains are intended to be reinvested for an indefinite period and these temporary differences are thus not likely to reverse in the foreseeable future.

• • • • • • • • •

93

• • • •

7.13. Earnings per share Note (13)

2015 16 2014 15
Profit for the period attributable to shareholders of the parent
(AGRANA Beteiligungs-AG)
€000
82,723 80,896
Average number of shares outstanding 14,202,040 14,202,040
Earnings per share under IFRS (basic and diluted)
5.82 5.70
Dividend per share
4.001 3.60

Subject to the Annual General Meeting's approval of the proposed allocation of profit for the 2015|16 financial year, AGRANA Beteiligungs-AG will pay a dividend of € 56,808 thousand (prior year: € 51,127 thousand).

8. Notes to the consolidated cash flow statement

The cash flow statement is prepared using the indirect method and in accordance with IAS 7. The statement traces the movements in the AGRANA Group's cash and cash equivalents arising from operating, investing and financing activities.

Cash and cash equivalents, for the purpose of the cash flow statement, represent cash on hand, cheques and bank deposits.

As a result of currency legislation, there are restrictions on access to cash and cash equivalents of subsidiaries in the amount of € 18,237 thousand (prior year: € 17,006 thousand) in China and Ukraine.

Cash and cash equivalents do not include current bank borrowings or securities classified as current assets.

The currency translation effects, except those on cash and cash equivalents, are already eliminated in the respective balance sheet items.

8.1. Cash flows from operating activities Note (14)

Operating cash flow before changes in working capital was € 225,914 thousand (prior year: € 208,066 thousand), or 9.12% of revenue (prior year: 8.34%). The non-cash expenses/income consisted mainly of the unrealised foreign currency losses of € 11,033 thousand (prior year: unrealised translation gains of € –8,809 thousand) reflected in net financial items, non-cash income taxes of € 23,508 thousand (prior year: € 31,901 thousand), non-cash interest of € 8,376 thousand (prior year: € 10,182 thousand), a non-cash change of € 1,146 thousand (prior year: € 1,368 thousand) in impairment on receivables, and non-cash inventory write-downs of € 5,471 thousand (prior year: € 13,851 thousand). After changes in working capital and after cash flows from interest and taxes, net cash from operating activities was € 101,913 thousand (prior year: € 227,143 thousand).

8.2. Cash flows from investing activities Note (15)

Net cash used in investing activities decreased by € 64,227 thousand from € 84,151 thousand to € 19,924 thousand. This reflected the fact that an increase in outflows from purchases in property, plant and equipment and intangible assets to € 107,720 thousand (prior year: € 86,982 thousand) was more than offset by the disposal of the participation capital of RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN regGenmbH in the amount of € 85,000 thousand which AGRANA Beteiligungs-AG had subscribed.

Proceeds from the disposal of non-current assets amounted to € 3,103 thousand (prior year: € 1,621 thousand).

8.3. Cash flows from financing activities Note (16)

Borrowings (net of unrealised currency translation losses) fell by € 21,098 thousand in the 2015|16 financial year (prior year: reduction of € 8,373 thousand).

As a result of the redemption of the participation capital by RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN regGenmbH, AGRANA was able to repay current borrowings of € 85,000 thousand to affiliated companies in the Südzucker group.

Purchases on non-controlling interests consisted of the acquisition by AGRANA Zucker GmbH, Vienna, of the remaining 2.34% of Moravskoslezské Cukrovary A.S., Hrušovany, Czech Republic, for the sum of € 2,558 thousand, which was paid in the year under review.

Dividends paid consisted mainly of the cash dividend distributed to the shareholders of AGRANA Beteiligungs-AG.

9. Notes to the consolidated balance sheet

Concessions,
licences
and similar
¤000 Goodwill rights Total
2015 16
Cost
At 1 March 2015 226,176 90,449 316,625
Currency translation differences 26 (355) (329)
Changes in scope of consolidation/other changes 0 41 41
Additions 0 6,682 6,682
Reclassifications 0 1,342 1,342
Disposals 0 (2,851) (2,851)
At 29 February 2016 226,202 95,308 321,510
Accumulated amortisation and impairment
At 1 March 2015 0 75,150 75,150
Currency translation differences 0 (245) (245)
Changes in scope of consolidation/other changes 0 43 43
Amortisation for the period 0 7,282 7,282
Reclassifications 0 87 87
Disposals 0 (2,768) (2,768)
At 29 February 2016 0 79,549 79,549
Carrying amount at 29 February 2016 226,202 15,759 241,961
2014 15
Cost
At 1 March 2014 226,177 85,331 311,508
Currency translation differences (1) 1,535 1,534
Changes in scope of consolidation/other changes 0 1 1
Additions 0 2,274 2,274
Reclassifications 0 1,584 1,584
Disposals 0 (276) (276)
At 28 February 2015 226,176 90,449 316,625
Accumulated amortisation and impairment
At 1 March 2014 0 68,181 68,181
Currency translation differences 0 1,250 1,250
Amortisation for the period 0 6,247 6,247
Reclassifications 0 (247) (247)
Disposals 0 (281) (281)
At 28 February 2015 0 75,150 75,150

• • • • • • • • •

95

• • • •

█ The additions of € 6,682 thousand (prior year: € 2,274 thousand) of non-goodwill intangible assets related primarily to software and a quota for deliveries to a customer. The quota is subject to amortisation based on delivery volume.

█ Intangible assets consist largely of goodwill, capitalised in accordance with IFRS 3, that resulted from the acquisition of companies. Intangibles also include acquired customer relationships, software, patents and similar rights, as well as non-current prepayments and similar rights.

█ Of the total carrying amount of goodwill, the Sugar segment accounted for € 20,111 thousand (prior year: € 20,111 thousand), the Starch segment for € 1,606 thousand (prior year: € 1,606 thousand) and the Fruit segment for € 204,485 thousand (prior year: € 204,459 thousand).

█ To satisfy the provisions of IFRS 3 in conjunction with IAS 36 and to allow the calculation of any impairment of goodwill, AGRANA has defined its cash-generating units to match its internal reporting structure. The cash-generating units in the AGRANA Group are the Sugar segment, Starch segment and Fruit segment, consistent with the internal management accounting and reporting processes. All goodwill was allocated to cash-generating units.

█ To test for impairment, the carrying amount of each cash-generating unit is measured by allocating to it the corresponding assets and liabilities, inclusive of attributable goodwill and other intangible assets. Impairment is recognised in profit or loss when the recoverable amount (value in use) of a cash-generating unit is less than its carrying amount inclusive of goodwill.

█ In testing for impairment, AGRANA uses a discounted cash flow method to determine the value in use of the cash-generating units. The determination of expected cash flows from each cash-generating unit is based on business plans that are validated and approved by Supervisory Board committees and have a planning horizon of five years. Projections beyond a five-year horizon are based on the assumption of a constant, inflation-induced growth rate of 1.5% per year (assumption in the prior year: 1.5%). The cost of capital (WACC) is calculated as the weighted average cost of equity and debt capital for each CGU.

█ The cost of equity is based on a risk-free rate, a return premium for the business risk, and a premium for country risk and inflation differential. The spot rate of a 30-year zero coupon bond, based on Deutsche Bundesbank data, was used as the risk-free rate of return. Business risk is represented by the product of a general market risk premium of 6.5% (prior year: 5.75%) and a beta factor derived from a peer group of nine companies. The country risk and the inflation differential are assigned a volatility factor of 1.5 (prior year: 1.0).

█ The cost of debt capital is calculated as the risk-free rate plus the country risk premium, the inflation differential, and the credit spread determined by reference to the capital market.

Excess of value in use over Goodwill WACC before tax carrying amount 29 Feb 28 Feb 29 Feb 28 Feb 2016 2015 2015|16 2014|15 2016 2015 €m €m % % €m €m Fruit CGU 204 204 10.48 10.36 67 96 Starch CGU 2 2 6.11 6.30 576 737 Sugar CGU 20 20 7.66 7.83 61 128 Group 226 226 – – 704 961

The following table presents the carrying amounts of the goodwill, the respective discount rate (WACC) and the excess of recoverable over carrying amount, by CGU:

█ The quality of the forecast data is frequently tested against actual outcomes with the help of variance analysis. The insights gained are then taken into account during the preparation of the next annual plan. Projections of value in use are highly sensitive to assumptions regarding future local market developments and volume trends. Value in use is therefore ascertained both on the basis of experience and of assumptions that are reviewed with experts for the regional markets.

█ The amounts by which the recoverable amounts exceeded the carrying amounts were subjected to a sensitivity analysis. The results are presented on page 83. The goodwill is not tax-deductible.

█ At the balance sheet date, other intangible assets with an indefinite useful life that were not significant for the AGRANA Group were included.

9.2. Property, plant and equipment
¤000
Land,
leasehold
rights and
buildings
Technical
plant and
machinery
Other plant,
furniture
and
equipment
Assets
under
con-
struction
Total
2015 16
Cost
At 1 March 2015 539,181 1,118,396 184,044 33,572 1,875,193
Currency translation differences (7,630) (11,547) (2,425) (1,348) (22,950)
Changes in scope of consolidation/
other changes 13 1,918 3,762 49 5,742
Additions 18,209 36,749 8,328 46,015 109,301
Reclassifications 17,633 31,037 4,495 (54,508) (1,343)
Disposals (12,371) (22,148) (5,944) (193) (40,656)
Government grants (114) (127) 0 0 (241)
At 29 February 2016 554,921 1,154,278 192,260 23,587 1,925,046
Accumulated depreciation and impairment
At 1 March 2015 291,420 778,629 143,134 473 1,213,656
Currency translation differences (2,897) (7,762) (1,842) 1 (12,500)
Changes in scope of consolidation/
other changes (54) 1,387 1,608 0 2,941
Depreciation for the period 15,866 50,118 11,517 0 77,501
Impairment 0 910 0 510 1,420
Reclassifications 1,128 (2,220) 1,006 0 (86)
Disposals (10,193) (20,853) (5,611) 0 (36,657)
Reversal of impairment losses (326) (495) 0 0 (821)
At 29 February 2016 294,944 799,714 149,812 984 1,245,454
Carrying amount at 29 February 2016 259,977 354,564 42,448 22,603 679,592
2014 15
Cost
At 1 March 2014 497,931 1,075,621 186,938 35,005 1,795,495
Currency translation differences 2,919 11,494 (416) 1,070 15,067
Changes in scope of consolidation/
other changes 15 36 (129) 1,418 1,340
Additions 7,936 27,382 9,503 44,114 88,935
Reclassifications 33,007 18,875 (7,274) (46,192) (1,584)
Disposals (2,253) (14,709) (4,578) (133) (21,673)
Government grants (374) (303) 0 (1,710) (2,387)
At 28 February 2015 539,181 1,118,396 184,044 33,572 1,875,193
Accumulated depreciation and impairment
At 1 March 2014 265,913 742,904 142,491 574 1,151,882
Currency translation differences 2,093 6,031 (452) 0 7,672
Changes in scope of consolidation/
other changes 0 518 (298) 0 220
Depreciation for the period 15,325 48,633 10,382 0 74,340
Impairment 0 28 148 0 176
Reclassifications 9,936 (4,775) (4,923) 9 247
Disposals (1,697) (14,196) (4,180) (110) (20,183)
Reversal of impairment losses (150) (514) (34) 0 (698)
At 28 February 2015 291,420 778,629 143,134 473 1,213,656
Carrying amount at 28 February 2015 247,761 339,767 40,910 33,099 661,537

• • • • • • • • •

97

• • • •

█ Additions (i. e., purchases) of intangible assets (other than goodwill) and property, plant and equipment:

¤000 2015 16 2014 15
Sugar segment 46,102 34,476
Starch segment 28,151 13,743
Fruit segment 41,730 42,990
Group 115,983 91,209

█ Currency translation differences are the differences between amounts arising from the translation of the opening balances of foreign Group companies at the exchange rates prevailing at the start and at the end of the reporting period.

  • █ Government grants consisted of investment assistance in Hungary (Sugar segment) and the USA (Fruit segment).
  • █ There was no interest expense to be recognised.

█ The AGRANA Group, in addition to operating leases, also employs a small number of finance leases. The major finance lease relates to the renting of a building erected on AGRANA land at the site in Kröllendorf/Allhartsberg, Austria. This finance lease requires recognition in the balance sheet beginning in the 2015|16 financial year. An option to purchase the third-party building can be exercised in the 2018|19 financial year. The finance leases for other plant, fixtures and fittings are of minor significance and are primarily vehicle leases. The movement in property, plant and equipment under finance leases and the reconciliation of future minimum lease payments to their present value are shown below:

2015 16 2014 15
¤000 Land, lease-
hold rights
and buildings
Other plant,
furniture and
equipment
Land, lease-
hold rights
and buildings
Other plant,
furniture and
equipment
Cost 3,003 59 0 96
Less accumulated depreciation
and impairment (235) (17) 0 (35)
Carrying amount 2,768 42 0 61
2015 16 2014 15
¤000 Future
minimum
lease
payments
Interest Present
value
Future
minimum
lease
payments
Interest Present
value
In the subsequent year 331 (57) 274 22 (2) 20
In years 2 to 5 2,642 (92) 2,550 42 (1) 41
In more than 5 years 0 0 0 0 0 0
Total 2,973 (149) 2,824 64 (3) 61

█ The use of off-balance sheet property, plant and equipment (under operating leases) gives rise to the following obligations under lease, licence and rental agreements:

¤000 2015 16 2014 15
In the subsequent year 3,511 3,620
In years 2 to 5 10,192 10,730
In more than 5 years 3,622 6,333

█ The AGRANA Group does not act as a lessor.

9.3. Equity-accounted joint ventures, securities, and investments in non-consolidated subsidiaries and outside companies Note (19)

¤000 Equity-
accounted
joint
ventures
Securities
(non-
current)
Investments
in non
consolidated
subsidiaries
and outside
companies
Total
2015 16
At 1 March 2015 84,384 104,879 1,114 190,377
Currency translation differences (2,104) 33 0 (2,071)
Additions 0 308 10 318
Share of results of equity-accounted joint ventures 24,523 0 0 24,523
Impairment 0 0 (8) (8)
Disposals, and dividends
of equity-accounted joint ventures (45,900) (85,069) (25) (130,994)
Other comprehensive income 3 (1,529) 0 (1,526)
At 29 February 2016 60,906 18,622 1,091 80,619
2014 15
At 1 March 2014 57,057 104,584 1,120 162,761
Currency translation differences 2,127 171 0 2,298
Changes in scope of consolidation/other changes 0 0 (10) (10)
Additions 0 36 4 40
Share of results of equity-accounted joint ventures 25,372 0 0 25,372
Disposals, and dividends
of equity-accounted joint ventures 0 (198) 0 (198)
Other comprehensive income (172) 286 0 114
At 28 February 2015 84,384 104,879 1,114 190,377

█ The disposals of securities related mainly to the redemption of participation capital by RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN regGenmbH in the amount of € 85,000 thousand that had been held by AGRANA Beteiligungs-AG.

█ The securities were predominantly securities of Austrian issuers.

9.4. Receivables and other assets Note (20)

29 Feb 28 Feb
¤000 2016 2015
Trade receivables 296,566 313,762
Amounts due from affiliated companies and joint ventures 28,059 28,839
Amounts due from associates in the Südzucker group 3,215 1,338
Positive fair value of derivatives 3,186 2,690
Receivable for legacy soil reclamation 208 426
Receivable under government grants 199 2,957
Other financial assets 25,504 38,813
Financial instruments 356,937 388,825
VAT credits and other tax credits 73,079 54,905
Accrued income 15,262 12,535
Prepaid expenses 4,845 4,598
Total 450,123 460,863
Of which due after more than 1 year 10,602 21,070

Amounts due from affiliated companies represent open accounts with non-consolidated subsidiaries, with the Group's parent company Südzucker AG and Südzucker's subsidiaries, and with joint ventures.

• • • • • • • • •

99

• • • •

9.5. Deferred tax assets Note (21)

Deferred tax assets were attributable to balance sheet items as follows:

29 Feb 28 Feb
¤000 2016 2015
Deferred tax assets
Intangible assets and property, plant and equipment 2,820 2,413
Non-current financial assets (primarily "one-seventh" write-downs
on non-consolidated subsidiaries and on outside companies) 4,310 7,127
Inventories 3,720 4,968
Receivables and other assets 1,690 1,869
Carryforwards of unused tax losses 3,022 3,248
Retirement, termination and long-service benefit obligations 7,153 7,813
Other provisions and liabilities 11,295 9,335
Total deferred tax assets 34,010 36,773
Deferred tax assets offset against deferred tax liabilities
relating to the same tax authority (19,137) (14,589)
Net deferred tax assets 14,873 22,184

Deferred tax liabilities are detailed in note 28.

9.6. Inventories Note (22)

29 Feb 28 Feb
¤000 2016 2015
Raw materials and consumables 182,680 201,265
Finished and unfinished goods 418,441 396,843
Goods purchased for resale 53,051 27,205
Total 654,172 625,313

Write-downs of € 5,471 thousand (prior year: € 13,851 thousand) were recognised on inventories, with the Sugar segment accounting for € 3,058 thousand (prior year: € 11,364 thousand) of this total. These impairment charges were attributable to a reduction in net realisable values of quota sugar and non-quota sugar at the balance sheet date.

9.7. Non-current assets held for sale Note (23)

This item represents a Belgian property disclosed at carrying amount in accordance with IFRS 5 which is being held for sale within twelve months.

9.8. Equity Note (24)

█ The Company had share capital of € 103,210,250 at the balance sheet date, consisting of 14,202,040 ordinary voting bearer shares without par value. All shares were fully paid.

█ The movements in the Group's equity are presented from page 64.

█ The capital reserves ("share premium and other capital reserves") consist of share premium (i. e., additional paid-in capital) and of reserves resulting from the reorganisation of companies. The capital reserves remained unchanged in the 2015|16 financial year. Retained earnings consist of the available-for-sale reserve and the reserves for cash flow hedges, actuarial gains and losses, investments in equity-accounted joint ventures, effects of consolidation-related foreign currency translation, and accumulated profits/losses for the period.

█ In February 2016, AGRANA Zucker GmbH, Vienna, increased its ownership interest in Moravskoslezské Cukrovary A.S., Hrušovany, Czech Republic, from 97.66% to 100%. The difference of € 724 thousand between the purchase price paid and the carrying amount of the acquired net assets was offset against retained earnings.

Disclosures on capital management

A key goal of equity management is the maintenance of sufficient equity resources to safeguard the Company's continuing existence as a going concern and ensure continuity of dividends. Equity bore the following relationship to total capital:

29 Feb 28 Feb
¤000 2016 2015
Total equity 1,200,124 1,194,420
Total assets 2,243,165 2,406,887
Equity ratio 53.5% 49.6%
Net debt 405,806 330,283
Gearing ratio 33.8% 27.7%

Capital management at AGRANA means the management of equity and of net debt. By optimising these two measures, the Company seeks to achieve the best possible shareholder returns. In addition to the equity ratio, the most important control variable is the gearing ratio (net debt divided by total equity). The total cost of equity and debt capital employed and the risks associated with the different types of capital are continuously monitored.

The sound equity base gives AGRANA strategic flexibility and also demonstrates the Group's financial stability and independence. In addition to its self-financing ability, AGRANA also has access to high, committed credit lines for its overall financing needs.

The approach to capital management was unchanged from the prior year.

9.9. Provisions Note (25)

29 Feb 28 Feb
¤000 2016 2015
Provisions for:
Retirement benefits 30,102 34,307
Termination benefits 37,044 37,578
Other 48,425 56,636
Total 115,571 128,521

a) Provisions for retirement and termination benefits Note (25a)

Provisions for retirement and termination benefits are measured in accordance with IAS 19, using the projected unit credit method and taking into account future trends on an actuarial basis. For both the retirement and termination benefit obligations, the plans are defined benefit plans.

The present values of the obligations, and the associated plan assets where applicable, were determined based on the following actuarial parameters:

29 Feb
% 2016 2015
Expected rate of wage and salary increases
Austria /Europe 2.5 2.5
Mexico/USA/ South Korea 6.0/3.0/4.0 6.0/3.0/4.0
Expected trend of pension increases
Austria 2.0 2.0
Mexico 4.0 4.0
Discount rate
Austria /Europe /USA 1.8 1.4
Mexico/ South Korea 7.0/2.7 7.0/3.1

• • • • • • • • •

101

• • • •

A discount rate of 1.8% (prior year: 1.4%) was used in almost all cases in the determination of the provisions for pensions and termination benefits. The discount rate is based on the yield of high-quality corporate bonds with a duration matching the average weighted duration of the obligations.

The measurement process also involves other company-specific actuarial assumptions, such as the staff turnover rate. The current mortality tables recognised in the respective country are used as the biometric basis for the calculations – in Austria, this is the version of the computation tables by Pagler & Pagler specific to salaried employees ("AVÖ 2008-P-Rechnungsgrundlagen für die Pensionsversicherung").

Defined benefit plans

Pension plans in the AGRANA Group are based largely on direct defined benefit commitments. The amounts of the pension benefits are usually determined by length of service and pensionable pay. Termination benefit plans exist mainly as a result of legal requirements or of obligations under collective agreements and the benefits represent one-time, lump sum payments. The amount of the termination benefits typically depends on final pay and length of service.

The provision in the balance sheet (the net liability) for pensions and termination benefits in the AGRANA Group represents the present value of the defined benefit obligation less the fair value of the plan assets:

29 Feb 28 Feb
¤000 2016 2015
Pension plans
Present value of defined benefit obligation 43,243 47,676
Fair value of plan assets (13,141) (13,369)
Pension provisions (net liability) 30,102 34,307
Termination benefit plans
Present value of defined benefit obligation 37,874 38,409
Fair value of plan assets (830) (831)
Termination benefit provisions (net liability) 37,044 37,578

In connection with defined benefit pension commitments, the AGRANA Group's major plans are the following:

AGRANA Beteiligungs-AG has direct defined benefit commitments in respect of Management Board members for retirement, disability and survivor pensions based on a fixed percentage of a pension assessment base. All pension benefit obligations are transferred to and administered by an external pension fund. The present value of the obligation was € 19,020 thousand (prior year: € 20,698 thousand) and the plan assets amounted to € 12,374 thousand (prior year: € 12,640 thousand). Further detail is provided in the section "Related party disclosures" in these notes.

In addition, there were direct defined benefit commitments, including survivor benefits, in respect of retired former employees of AGRANA Zucker GmbH in the amount of € 19,721 thousand (prior year: € 22,243 thousand), of AGRANA Stärke GmbH in the amount of € 2,666 thousand (prior year: € 2,866 thousand) and of AGRANA Juice Holding GmbH in the amount of € 229 thousand (prior year: € 243 thousand). The present value of the obligation of AGRANA Juice Holding GmbH is offset by plan assets in the form of pension risk transfer insurance of € 163 thousand (prior year: € 167 thousand).

At AGRANA Fruit Austria GmbH there are pension commitments in respect of active employees for retirement, disability and survivor benefits with a contractual (in some cases length-of-service-dependent) fixed benefit amount, and direct obligations in respect of retired former employees, including survivor benefits. The present value of these obligations was € 1,013 thousand (prior year: € 1,032 thousand) and there were plan assets in the form of pension insurance of € 505 thousand (prior year: € 456 thousand).

In Mexico there is a contractual obligation in respect of a defined set of recipients in the event of retirement or early retirement to pay a fixed percentage of a specified pensionable pay base in monthly instalments for a period of ten years. Alternatively, the recipient may choose a lump sum payment. The present value of this obligation was € 594 thousand (prior year: € 594 thousand), with plan assets in the form of pension insurance of € 99 thousand (prior year: € 106 thousand).

The pension provisions showed the following movement:

Present Fair value
value of of plan Pension
¤000 obligation assets provisions
2015 16
1 March 2015 47,676 (13,369) 34,307
Service cost 828 0 828
Interest expense/(income) 681 (198) 483
Past service cost 155 0 155
Taxes and administration cost 0 33 33
Total recognised in the income statement
(net pension cost) 1,664 (165) 1,499
Gains/(losses) from:
Actual return on plan assets 0 1,028 1,028
Changes in financial assumptions (2,145) 0 (2,145)
Experience adjustments (1,208) 0 (1,208)
Currency translations differences (104) 17 (87)
Total remeasurement gain/(loss) recognised
in the statement of comprehensive income (3,457) 1,045 (2,412)
Benefits paid (2,640) 9 (2,631)
Employer contributions to plan assets 0 (661) (661)
Other movements (2,640) (652) (3,292)
At 29 February 2016 43,243 (13,141) 30,102
2014 15
1 March 2014 37,522 (9,369) 28,153
Service cost 826 0 826
Interest expense/(income) 1,284 (349) 935
Taxes and administration cost 0 155 155
Total recognised in the income statement
(net pension cost) 2,110 (194) 1,916
Gains/(losses) from:
Actual return on plan assets 0 (829) (829)
Changes in financial assumptions 9,571 0 9,571
Experience adjustments 1,660 0 1,660
Currency translations differences 46 (8) 38
Total remeasurement gain/(loss) recognised
in the statement of comprehensive income 11,277 (837) 10,440
Benefits paid (3,233) 9 (3,224)
Employer contributions to plan assets 0 (2,978) (2,978)
Other movements (3,233) (2,969) (6,202)
At 28 February 2015 47,676 (13,369) 34,307

The AGRANA Group has the following main termination benefit plans:

The termination benefit plans most significant in amount exist in Austria and France. The plans represent legislated commitments to pay a lump sum benefit on termination of employment (unless terminated by the employee) and in the event of retirement or death. The amount of the benefit depends on final pay and length of service. Termination benefit obligations in Austria and France are funded solely by provisions, in the amount of € 35,224 thousand (prior year: € 35,973 thousand).

In Russia and Ukraine there are termination benefit commitments (either legislated or based on company-wide agreements) that are minor in amount. These are payable as a lump sum on termination of employment (unless terminated by the employee) or on retirement. The benefit amount depends on final pay and length of service. These commitments in the amount of € 101 thousand (prior year: € 71 thousand) are covered solely by provisions.

The termination benefit arrangements in the USA consist of contractual commitments in respect of a defined set of recipients, while the commitments in Mexico are legislated obligations to all permanent and full-time employees. In Mexico the termination benefit is paid if the employment relationship is terminated after 15 years or more of service, at retirement or in the event of disability or death. It takes the form of a lump sum in an amount that is based on final salary and length of service. In the USA, the benefit is paid on termination of employment and is based on final salary and length of service. In Mexico, plan assets of € 3 thousand (prior year: € 13 thousand) offset the present value of the obligation of € 132 thousand (prior year: € 137 thousand). In the USA, the commitments of € 1,073 thousand (prior year: € 961 thousand) are funded solely by provisions.

The present value of the obligation of the termination benefit plan for South Korea was € 1,344 thousand (prior year: € 1,267 thousand), while the plan assets amounted to € 827 thousand (prior year: € 818 thousand).

Present Fair value Termination
value of of plan benefit
¤000 obligation assets provisions
2015 16
At 1 March 2015 38,409 (831) 37,578
Service cost 1,820 0 1,820
Interest expense/(income) 552 (25) 527
Past service cost 7 0 7
Taxes and administration cost 0 2 2
Total recognised in the income statement
(net termination benefit cost) 2,379 (23) 2,356
Gains/(losses) from:
Actual return on plan assets 0 9 9
Changes in demographic assumptions 9 0 9
Changes in financial assumptions (1,202) 0 (1,202)
Experience adjustments 415 0 415
Currency translations differences (113) 72 (41)
Total remeasurement gain/(loss) recognised
in the statement of comprehensive income (891) 81 (810)
Changes in scope of consolidation/reclassifications 696 0 696
Benefits paid (2,719) 103 (2,616)
Employer contributions to plan assets 0 (160) (160)
Other movements (2,023) (57) (2,080)
At 29 February 2016 37,874 (830) 37,044

The termination benefit provisions showed the following movement:

• • • • • • •

• • • •

Present Fair value Termination
value of of plan benefit
¤000 obligation assets provisions
2014 15
At 1 March 2014 30,762 (610) 30,152
Service cost 1,538 0 1,538
Interest expense/(income) 1,052 (25) 1,027
Past service cost (10) 0 (10)
Effects of plan curtailments and settlements 51 0 51
Taxes and administration cost 0 2 2
Total recognised in the income statement
(net termination benefit cost) 2,631 (23) 2,608
Gains/(losses) from:
Actual return on plan assets 0 15 15
Changes in demographic assumptions (3) 0 (3)
Changes in financial assumptions 6,815 0 6,815
Experience adjustments (13) 0 (13)
Currency translations differences 128 (121) 7
Total remeasurement gain/(loss) recognised
in the statement of comprehensive income 6,927 (106) 6,821
Benefits paid (2,139) 102 (2,037)
Employer contributions to plan assets 0 (194) (194)
Miscellaneous changes 228 0 228
Other movements (1,911) (92) (2,003)
At 28 February 2015 38,409 (831) 37,578

The expense for the unwinding of discount on benefits accrued in prior years, less the return on plan assets, is included within net financial items. The current service cost is included in staff costs. The change in actuarial gains of the pension and termination benefit provisions, which is recognised directly in equity, was an increase of € 3,225 thousand (prior year: losses with a decrease of € 17,261 thousand). The change resulted primarily from the higher discount rate and from experience adjustments concerning factors such as expected retirement age, wage and salary growth rates and assumed employee turnover rates. As of 29 February 2016, net cumulative actuarial losses of € 35,037 thousand (prior year: net losses of € 38,261 thousand) had been offset against retained earnings, not taking into account deferred taxes.

The experience adjustments reflect the impacts on the plan liabilities of differences between the actual movement in the plan obligation during the year and the assumptions made at the beginning of the year. Such differences arise, especially, from actual rates of wage and salary increases, changes in pension benefits, employee turnover and biometric variables such as disability and mortality.

Composition of plan assets

The plan assets consist primarily of investments in an external pension fund and of pension benefit insurance policies. The fundamental objective for the plan assets is to provide, at all times, full coverage of the payment obligations arising from the respective benefit plans. The plan assets include neither financial instruments issued by the Group nor owner-occupied property.

At the balance sheet date the plan assets were invested in the following asset categories:

29 Feb 28 Feb
% 2016 2015
Fixed income securities 58.09 57.93
Equity securities 25.04 29.36
Real estate 4.41 3.43
Other 12.46 9.28

• • • • • • • • •

105

• • • •

Risks

Defined benefit plans are associated with various risks for the AGRANA Group. Besides general actuarial risks such as discount rate risk and longevity risk, these include the risk that actual outcomes will differ from actuarial assumptions such as rates of wage and salary growth, pension benefit trends, retirement age and employee turnover (early departures). Risks in connection with the plan assets are capital market risks, credit risks and investment risks. Other risks lie in exchange rate fluctuation and changes in inflation rates.

The rate of return on plan assets is assumed to equal the discount rate. If the actual rate of return on plan assets is less than the discount rate used, the respective net liability increases. The net liability is particularly strongly influenced by the discount rate, with the current low market interest rates contributing to a relatively high liability. A further decline in corporate bond yields would lead to a further increase in defined benefit liabilities that can only be off set to a small degree by the increase in market values of the corporate bonds in the plan assets.

Potential inflation risks that may lead to an increase in the defined benefit obligations lie, indirectly, in inflation-driven salary growth during active service and in inflation-induced pension benefit increases.

Duration and future payments

The average weighted duration of the present value of the pension obligations at 29 February 2016 was 12.51 years (prior year: 12.96 years) and that of the termination benefit obligations was 8.92 years (prior year: 9.67 years).

€ 627 thousand (prior year: € 954 thousand) of contributions are expected to be paid into the plan assets in the subsequent reporting period.

The amounts of pension and termination benefit payments in the next ten years are expected to be as follows:

€000 Pension
benefits
Termination
benefits
2016 17 2,657 1,767
2017 18 2,748 2,543
2018 19 2,764 3,033
2019 20 2,778 3,501
2020 21 2,637 3,536
2021 22 to 2025 26 11,777 12,158
Total 25,361 26,538
Note (25b) b) Other provisions Site
recla-
Staff costs
including
long-service
Uncertain Total
¤000 mation awards liabilities
2015 16
At 1 March 2015 2,782 17,718 36,136 56,636
Currency translation differences 11 (52) 69 28
Changes in scope of consolidation 0 47 7 54
Used (29) (4,733) (15,481) (20,243)
Released 0 (725) (4,022) (4,747)
Reclassified 4,241 0 (4,241) 0
Added 472 4,831 11,394 16,697
At 29 February 2016 7,477 17,086 23,862 48,425
Of which due within 1 year 305 4,443 23,678 28,426

The provisions for uncertain liabilities included, among other items, provisions for litigation risks of € 11,744 thousand (prior year: € 8,481 thousand), for costs of beet receiving, loading and storage of € 2,165 thousand (prior year: € 2,771 thousand) and for onerous contracts of € 4,189 thousand (prior year: € 11,687 thousand).

Most of the non-current other provisions of € 19,999 thousand (prior year: € 14,879 thousand) represented provisions of € 10,150 thousand for long-service awards (prior year: € 10,048 thousand). These are payable under local company agreements or collective agreements and are based on length of service. Phased-retirement provisions of € 736 thousand (prior year: € 965 thousand) are expected to be used in outflows of funds in the next one to three years. For the majority of the non-current provisions of € 7,173 thousand (prior year: € 2,754 thousand) for recultivation, an outflow of funds is likely to occur in more than five years.

9.10. Borrowings Note (26)

29 Feb 28 Feb
€000 2016 2015
Bank loans and overdrafts, and other loans from non-Group entities 366,024 378,965
Borrowings from affiliated companies in the Südzucker group 165,000 250,000
Lease liabilities 2,824 61
Borrowings 533,848 629,026
Of which due after more than 1 year 286,028 319,672

Details of bank loans and overdrafts are presented in sections 10.1. to 10.4.

Bank loans and overdrafts were secured as follows at the balance sheet date:

29 Feb 28 Feb
€000 2016 2015
Mortgage liens 0 809
Other liens 7,800 7,900
Total 7,800 8,709

The item "other liens" related solely to collateral for export credits with underlying carrying amounts of € 7,800 thousand.

9.11. Trade and other payables Note (27)

29 Feb 28 Feb
€000 2016 2015
Trade payables 269,892 291,281
Amounts due to affiliated companies in the Südzucker group 11,133 29,459
Derivative liabilities 12,687 10,259
Financial other payables 61,035 59,179
Financial instruments 354,747 390,178
Payables: deferred income 3,050 2,909
Payables: prepayments 175 701
Payables: other tax 11,468 12,275
Payables: social security 6,642 6,334
Total 376,082 412,397
Of which due after more than 1 year 1,024 1,204

Trade payables included obligations to beet growers of € 73,085 thousand (prior year: € 82,970 thousand).

Financial other payables included, among other items, liabilities to employees, payroll liabilities, and liabilities from the EU production levy.

• • • • • • • • •

107

• • • •

9.12. Deferred tax liabilities Note (28)

Deferred tax liabilities were attributable to balance sheet items as follows:

29 Feb 28 Feb
€000 2016 2015
Deferred tax liabilities
Non-current assets 12,327 13,905
Inventories 14 772
Receivables and other assets 4,490 2,906
Untaxed reserves in separate financial statements 5,351 5,859
Provisions and other liabilities 1,436 1,571
Total deferred tax liabilities 23,618 25,013
Deferred tax assets offset against deferred tax liabilities
relating to the same tax authority (19,137) (14,589)
Net deferred tax liabilities 4,481 10,424

Deferred tax assets are detailed in note 21.

10. Notes on financial instruments

10.1. Investment and credit transactions (non-derivative financial instruments)

To cover its overall funding needs, the AGRANA Group, in addition to its self-financing capability, has access to syndicated credit lines and bilateral credit lines from banks.

Financial instruments are generally procured centrally and distributed Group-wide. The principal aims of obtaining financing are to achieve a sustained increase in enterprise value, safeguard the Group's credit quality and ensure its liquidity.

To manage the seasonally fluctuating cash flows, the AGRANA Group in the course of its day-to-day financial management uses conventional investments (demand deposits, time deposits and securities) and borrowings (in the form of overdrafts, short-term funds and fixed rate loans).

Average Of which due in
effective At More
interest balance Up to 1 to than
5 years
rate sheet date 1 year 5 years
% €000 €000 €000 €000
29 February 2016
Fixed rate
EUR 3.10 200,149 860 192,289 7,000
3.10 200,149 860 192,289 7,000
Variable rate
ARS 31.20 599 599 0 0
CNY 4.56 841 841 0 0
DKK 2.00 10 10 0 0
EGP 7.80 1 1 0 0
EUR 1.03 314,606 233,686 66,920 14,000
HUF 2.34 5,003 5,003 0 0
KRW 3.16 3,711 3,711 0 0
MXN 14.46 3,269 0 3,269 0
USD 2,835 2,835 0 0
1.26 330,875 246,686 70,189 14,000
Total 1.95 531,024 247,546 262,478 21,000
Average Of which due in
effective At More
interest balance Up to 1 to than
rate sheet date 1 year 5 years 5 years
% €000 €000 €000 €000
28 February 2015
Fixed rate
EUR 2.96 251,067 52,356 191,711 7,000
2.96 251,067 52,356 191,711 7,000
Variable rate
ARS 20.44 515 515 0 0
EGP 7.80 13 13 0 0
EUR 1.09 361,255 240,335 106,920 14,000
HUF 2.96 7,425 7,425 0 0
KRW 3.65 4,854 4,854 0 0
MXN 14.46 3,836 3,836 0 0
1.32 377,898 256,978 106,920 14,000
Total 1.98 628,965 309,334 298,631 21,000

Bank loans and overdrafts (excluding finance leases) and amounts due to affiliated companies of the Südzucker group amounted to € 531,024 thousand (prior year: € 628,965 thousand). The reduction compared with the prior year resulted primarily from the repayment of a loan tranche of € 85,000 thousand to Südzucker AG, Mannheim, Germany.

The weighted average interest rate paid on these credits was 1.95% (prior year: 1.98%), with a remaining maturity of 1.6 years (prior year: 1.9 years).

These borrowings are covered by credit line limits of € 952,627 thousand (prior year: € 1,007,724 thousand). The weighted average remaining maturity of the credit lines at the balance sheet date was 2.6 years (prior year: 3.0 years).

The credit funding of the AGRANA Group consists primarily of two syndicated credit lines totalling € 450,000 thousand at the balance sheet date (prior year: € 450,000 thousand), a Schuldscheindarlehen (bonded loan) of € 126,000 thousand (prior year: € 126,000 thousand) and a financing from Südzucker AG, Mannheim, Germany, in the amount of € 165,000 thousand (prior year: € 250,000 thousand). The other credit lines are bilateral ones.

The fixed interest portion of bank loans and overdrafts and amounts due to affiliated companies was € 200,149 thousand (prior year: € 251,067 thousand). The fair values (i. e., market values) of the variable rate bank loans and overdrafts are equivalent to their carrying amounts. At the balance sheet date, € 0 (prior year: € 809 thousand) of bank loans and overdrafts were secured by mortgage liens and € 7,800 thousand (prior year: € 7,900 thousand) were secured by other liens.

Cash and cash equivalents decreased by € 84,443 thousand from the prior year to a new total of € 109,375 thousand. In addition, securities in the amount of € 45 thousand (prior year: € 46 thousand) were held as current assets; these were categorised as held-for-trading.

• • • • • • • • •

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10.2. Derivative financial instruments

To hedge part of the risks arising from its operating activities (risks due to movements in interest rates, foreign exchange rates and raw material prices), the AGRANA Group to a limited extent uses derivative financial instruments. AGRANA employs derivatives largely to hedge the following exposures:

  • █ Interest rate risks, which can arise from floating rate borrowings.
  • █ Currency risks, which may arise primarily from the purchase and sale of products in US dollars and Eastern European currencies and from finance in foreign currencies.
  • █ Market price risks, arising especially from changes in commodity prices for sugar in the world market, grain prices, and selling prices for sugar and ethanol.

The Group employs only conventional derivatives for which there is a sufficiently liquid market (for example, interest rate swaps, interest rate options, caps, forward foreign exchange contracts, currency options or commodity futures). The use of these instruments is governed by Group policies under the Group's risk management system. These policies prohibit the speculative use of derivative financial instruments, set ceilings appropriate to the underlying transactions, define authorisation procedures, minimise credit risks, and specify internal reporting rules and the organisational separation of risk-taking and risk oversight. Adherence to these standards and the proper processing and valuation of transactions are regularly monitored by an internal department whose independence is ensured by organisational separation from risk origination.

The notional amounts and market values (fair values) of the derivative financial instruments held by the AGRANA Group were as follows:

Notional Positive Negative Net
Purchase Sale amount fair values fair values fair value
€000 €000 €000 €000
29 February 2016
USD EUR 39,907 919 (92) 827
USD AUD 900 0 0 0
AUD EUR 589 0 (2) (2)
EUR AUD 1,471 5 0 5
EUR USD 93,386 19 (1,037) (1,018)
CAD EUR 167 2 0 2
CZK EUR 21,056 0 (41) (41)
EUR HUF 4,715 13 (33) (20)
EUR ZAR 2,670 0 (21) (21)
EUR CZK 2,000 4 0 4
EUR PLN 1,734 0 (16) (16)
EUR GBP 2,044 171 0 171
EUR RON 65,357 65 (31) 34
Currency derivatives 235,996 1,198 (1,273) (75)
Interest swap 68,000 0 (5,675) (5,675)
Interest cap 50,000 38 0 38
Sugar futures 26,868 1,731 (51) 1,680
Wheat and corn futures 37,423 219 (5,688) (5,469)
Total 418,287 3,186 (12,687) (9,501)
Notional Positive Negative Net
Purchase Sale amount fair values fair values fair value
€000 €000 €000 €000
28 February 2015
USD EUR 16,725 962 (1) 961
USD AUD 1,746 165 0 165
EUR USD 88,755 293 (3,803) (3,510)
CAD EUR 169 4 0 4
CZK EUR 23,196 159 (10) 149
EUR HUF 2,851 0 (96) (96)
PLN EUR 20,145 323 0 323
EUR PLN 1,662 0 (13) (13)
EUR GBP 716 0 (72) (72)
EUR RON 14,998 36 0 36
Currency derivatives 170,963 1,942 (3,995) (2,053)
Interest swap 68,000 0 (6,195) (6,195)
Interest cap 50,000 160 0 160
Wheat and corn futures 30,405 588 (69) 519
Total 319,368 2,690 (10,259) (7,569)

The currency derivatives and commodity derivatives are used to hedge cash flows over periods of up to one year; the interest rate derivatives serve to hedge cash flows for periods of one to four years.

The notional amount of the derivatives represents the face amount of all hedges, translated into euros as the Group currency.

The fair value of a derivative is the amount which the AGRANA Group would have to pay or would receive at the balance sheet date in the hypothetical event of early termination of the hedge position. As the hedging transactions involve only standardised, fungible financial instruments, fair value is determined on the basis of quoted market prices.

Fair value changes of derivatives employed to hedge future cash flows (cash flow hedges) are initially recognised directly in equity. Only when the cash flows are realised are the value changes recognised in profit or loss. At 29 February 2016 there were cash flow hedges with positive fair values of € 1,748 thousand (prior year: € 588 thousand) and cash flow hedges with negative fair values of 5,688 thousand (prior year: € 69 thousand).

In the financial year, € 588 thousand (prior year: € 185 thousand) was reclassified to the income statement and the ineffective portion (amounting to € 284 thousand) of cash flow hedges was recognised in profit for the period (prior year: € 0).

The value changes of those derivative positions to which cash flow hedge accounting is not applied are recognised in profit or loss. The hedging transactions were carried out both to hedge sales revenue and raw material costs for the juice activities, and to hedge sales contracts in the Sugar segment.

The table below shows the periods in which the cash outflows are expected to occur, as well as the carrying amounts of the hedging instruments:

Contractual cash outflows in
More
Carrying Up to 4 to 7 to 1 to 2 to 3 to 4 to than
€000 amount Total 3 m 6 m 12 m 2 y 3 y 4 y 5 y 5 y
29 February 2016
Currency derivatives
Positive fair values 1,198 1,198 1,006 104 88 0 0 0 0 0
Negative fair values (1,273) (1,273) (1,112) (87) (74) 0 0 0 0 0
Interest rate derivatives
Positive fair values 38 0 0 0 0 0 0 0 0 0
Negative fair values (5,675) (5,367) (384) (384) (768) (1,536) (1,524) (771) 0 0
Commodity derivatives
Positive fair values 1,950 1,950 1,563 210 177 0 0 0 0 0
Negative fair values (5,739) (5,739) (3,504) (375) (1,860) 0 0 0 0 0
Total (9,501) (9,231) (2,431) (532) (2,437) (1,536) (1,524) (771) 0 0
28 February 2015
Currency derivatives
Positive fair values 1,942 1,942 1,258 392 292 0 0 0 0 0
Negative fair values (3,995) (3,995) (1,868) (1,122) (1,005) 0 0 0 0 0
Interest rate derivatives
Positive fair values 160 0 0 0 0 0 0 0 0 0
Negative fair values (6,195) (6,491) (362) (362) (725) (1,446) (1,446) (1,434) (716) 0
Commodity derivatives
Positive fair values 588 588 15 0 573 0 0 0 0 0
Negative fair values (69) (69) (40) (29) 0 0 0 0 0 0
Total (7,569) (8,025) (997) (1,121) (865) (1,446) (1,446) (1,434) (716) 0

In terms of sensitivities, the net combined fair value of the derivative positions held at 29 February 2016 would have changed as follows given a reduction or increase of 1 percentage point in the market interest rate, an appreciation or depreciation of 10% in the relevant currencies against the euro, and a reduction or increase of 10% in the prices of wheat, corn and sugar:

Notional amount Sensitivity (+) Sensitivity (–)
29 Feb 28 Feb 29 Feb 28 Feb 29 Feb 28 Feb
€000 2016 2015 2016 2015 2016 2015
Currency derivatives 235,996 170,963 (10,982) (6,412) 10,150 4,569
Interest rate derivatives 118,000 118,000 2,403 2,719 (2,107) (2,341)
Commodity derivatives 64,291 30,405 6,980 2,863 (3,810) (2,745)

The effect of the changes in fair value on equity, including the tax effect, would have been, for the increase in rates and prices, an equity increase of € 5,253 thousand (prior year: increase of € 2,147 thousand) and for the decrease in rates and prices, an equity decrease of € 2,898 thousand (prior year: decrease of € 2,059 thousand). The effect of the fair value changes on profit before tax would have been, for the increase in rates and prices, a profit decrease of € 8,603 thousand (prior year: decrease of € 3,693 thousand), and for the decrease in rates and prices, a profit increase of € 8,097 thousand (prior year: increase of € 2,228 thousand).

• • •

• • • • 111

• • • •

• •

10.3. Additional disclosures on financial instruments

Carrying amounts and fair values of financial instruments

Set out in the table below are the carrying amounts and fair values of the Group's financial assets and liabilities, both by individual item type and by measurement category. The fair value of a financial instrument is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

The table below also shows how the fair values were determined, broken down by category of financial instrument. The fair value measurements were classified into three categories according to how closely the inputs used were based on quoted market data:

The three levels were defined as follows:

  • █ Level 1 consists of those financial instruments for which the fair value represents exchange or market prices quoted for the exact instrument on an active market (i. e., these prices are used without adjustment or change in composition).
  • █ In Level 2, the fair values are determined on the basis of exchange or market prices quoted on an active market for similar assets or liabilities, or using other valuation techniques for which the significant inputs are based on observable market data.
  • █ Level 3 consists of those financial instruments for which the fair values are determined on the basis of valuation techniques using significant inputs that are not based on observable market data.

The fair value of Level 2 currency derivatives is measured based on the exchange rate at the balance sheet date and the underlying currencies' interest rate differential relevant for the remaining maturity. The mark-to-market price is determined and compared with the price of the hedged item or transaction. The input factors for this are the reference rates of the ECB (daily fixing) or selected national central banks, and the daily EURIBOR and LIBOR/IBOR rates.

For Level 2 interest rate derivatives, the measurement of fair value involves comparing the fixed interest rate with the swap rates as at the balance sheet date or with the yield curve relevant for the maturity. The fair value is obtained from a separate calculation provided by banking institutions.

• • • • • • • • •

113

• • • •

Carrying amount Fair value
€000 Available-for-sale Available-for-sale
(at cost)
Held for trading hedging instruments
Fair value of
Loans and receivables At amortised cost Total Level 1 Level 2 Total
29 February 2016
Financial assets at fair value
Securities (non-current) 18,622 0 0 0 0 0 18,622 18,622 18,622
Derivative financial assets 0 0 1,438 1,748 0 0 3,186 1,950 1,236 3,186
Securities (current) 45 0 0 0 0 0 45 45 45
18,667 0 1,438 1,748 0 0 21,853
Financial assets
not at fair value
Investments in
non-consolidated subsidiaries
and outside companies 0 1,091 0 0 0 0 1,091
Trade receivables 0 0 0 0 296,566 0 296,566
Other receivables1 0 0 0 0 57,185 0 57,185
Cash and cash equivalents 0 0 0 0 109,375 0 109,375
0 1,091 0 0 463,126 0 464,217
Financial liabilities at fair value
Derivative liabilities 0 0 6,999 5,688 0 0 12,687 5,739 6,948 12,687
0 0 6,999 5,688 0 0 12,687
Financial liabilities
not at fair value
Bank loans and overdrafts,
and other loans
from non-Group entities 0 0 0 0 0 366,024 366,024 369,248 369,248
Borrowings from
affiliated companies
in the Südzucker group 0 0 0 0 0 165,000 165,000 169,771 169,771
Lease liabilities 0 0 0 0 0 2,824 2,824 2,896 2,896
Trade payables 0 0 0 0 0 269,892 269,892
Financial other payables2 0 0 0 0 0 72,168 72,168
0 0 0 0 0 875,908 875,908

1 Excluding other tax receivables, and excluding those prepaid expenses and accrued income not resulting in a cash inflow.

2 Excluding payables from other tax, social security, customer prepayments, and deferred income.

Carrying amount Fair value
€000 Available-for-sale Available-for-sale
(at cost)
Held for trading hedging instruments
Fair value of
Loans and receivables At amortised cost Total Level 1 Level 2 Total
28 February 2015
Financial assets at fair value
Securities (non-current) 19,879 0 0 0 0 0 19,879 19,879 19,879
Derivative financial assets 0 0 2,102 588 0 0 2,690 588 2,102 2,690
Securities (current) 46 0 0 0 0 0 46 46 46
19,925 0 2,102 588 0 0 22,615
Financial assets
not at fair value
Securities (non-current) 0 85,000 0 0 0 0 85,000
Investments in
non-consolidated subsidiaries
and outside companies 0 1,114 0 0 0 0 1,114
Trade receivables 0 0 0 0 313,762 0 313,762
Other receivables1 0 0 0 0 72,373 0 72,373
Cash and cash equivalents 0 0 0 0 193,818 0 193,818
0 86,114 0 0 579,953 0 666,067
Financial liabilities at fair value
Derivative liabilities 0 0 10,190 69 0 0 10,259 69 10,190 10,259
0 0 10,190 69 0 0 10,259
Financial liabilities
not at fair value
Bank loans and overdrafts,
and other loans
from non-Group entities 0 0 0 0 0 378,965 378,965 382,970 382,970
Borrowings from
affiliated companies
in the Südzucker group 0 0 0 0 0 250,000 250,000 255,967 255,967
Lease liabilities 0 0 0 0 0 61 61 61 61
Trade payables 0 0 0 0 0 291,281 291,281
Financial other payables2 0 0 0 0 0 88,639 88,639
0 0 0 0 0 1,008,946 1,008,946

1 Excluding other tax receivables, and excluding those prepaid expenses and accrued income not resulting in a cash inflow.

2 Excluding payables from other tax, social security, customer prepayments, and deferred income.

• • • • • • • • •

115

• • • •

The fair values of financial instruments were determined on the basis of the market information available at the balance sheet date and using the methods and assumptions outlined below.

Securities held as non-current and current assets include available-for-sale securities. These are measured at current securities exchange prices or market value.

Available-for-sale investments in non-consolidated subsidiaries and outside companies are measured at cost. These are non-fully-consolidated investments in subsidiaries and interests in non-listed companies for which it was chosen not to determine fair values using discounted future cash flows because this item is of minor significance for the Group.

As a result of the short maturities of the trade receivables, other financial assets and cash and cash equivalents, their fair values are assumed to be equivalent to their carrying amounts.

The positive and negative fair values of commodity derivatives relate partly to cash flow hedges. For the interest rate hedges, the fair values are determined on the basis of discounted future cash flows. Forward foreign exchange contracts are measured on the basis of reference rates, taking into account forward premiums or discounts. The fair values of interest rate derivatives are obtained from the bank confirmations as at the balance sheet date, and the fair values of commodity derivatives are based on official quotations on futures exchanges. The market rates (fair values) of currency derivatives are based on the forward rates determined by AGRANA as at the balance sheet date and on the hedged exchange rates. The interest rates and exchange rates used for the determination of the forward rates are based on the reference rates published by the ECB or the national central banks. In some cases, as a result of differences in interest rates, the fair values determined by the Group may differ to an insignificant extent from the fair values calculated by the commercial banks that issue the bank confirmations.

For trade payables and current financial other payables, it is assumed in view of the short maturities that the fair values equal the carrying amounts. The fair value of fixed interest liabilities is calculated as the present value of expected future cash flows. For variable rate liabilities, the fair value equals the carrying amount.

The net gains and losses on financial instruments are presented by measurement category in the following table:

€000 2015 16 2014 15
Available-for-sale 0 2
Available-for-sale (at cost) 28 0
Held for trading 3,771 (2,846)
Loans and receivables (649) 5,028
At amortised cost (11,033) 8,809
Net (loss)/gain on financial instruments (7,883) 10,993

The change in fair values of available-for-sale securities was recognised in other comprehensive income at an increase of € 1,529 thousand before tax (prior year: € 1,022 thousand) and at a tax expense of € 366 thousand (prior year: tax benefit of € 699 thousand).

The total interest income and expense on financial assets and financial liabilities not measured at fair value through profit or loss was as follows:

€000 2015 16 2014 15
Total interest income 9,724 9,426
Total interest expense (15,298) (13,417)
Net interest expense (5,574) (3,991)

10.4. Risk management in the AGRANA Group

The AGRANA Group is exposed to market price risks through changes in exchange rates, interest rates and security prices. In the Group's operating activities, price risks arise largely from the costs of raw materials (mainly sugar beet, sugar purchased in the world market, grains, potatoes, and fruit) and energy, and from selling prices of sugar, starch, ethanol and fruit products. In addition, the Group is exposed to credit risks, associated especially with trade receivables.

AGRANA uses an integrated system for the early identification and monitoring of risks relevant to the Group. The Group's proven approach to risk management is guided by the aim of balancing risks and returns. The Group's risk culture is characterised by risk-aware behaviour, clearly defined responsibilities, independent risk control, and the implementation of internal control systems.

AGRANA regards the responsible management of business risks and opportunities as an important part of sustainable, value-driven corporate governance. Risk management thus forms an integral part of the entire planning, management and reporting process and is directed by the Management Board. The parent company and all subsidiaries employ risk management systems that are tailored to their respective operating activity. The systems' purpose is the methodical identification, assessment, control and documenting of risks.

In a three-pronged approach, risk management at the AGRANA Group is based on risk control at the operational level, on strategic control of Group companies by the Group, and on an internal monitoring system delivered by the Group's internal audit department. In addition, emerging trends that could develop into threats to the viability of the AGRANA Group as a going concern are identified and analysed at an early stage and continually re-evaluated as part of the risk management process.

Credit risk

Credit risk is the risk of an economic loss as a result of a counterparty's failure to honour its payment obligations. Credit risk includes both the risk of a deterioration in customers' or other counterparties' credit quality, and the risk of their immediate default.

The trade receivables of the AGRANA Group are largely with the food, chemical and retail industries. Credit risk in respect of trade receivables is managed on the basis of internal standards and guidelines. Thus, a credit analysis is generally conducted for new customers. The Group also uses credit insurance and security such as bank guarantees.

For the residual risk from trade receivables, the Group establishes provisions for impairment.

The net carrying amount of trade receivables after provisions for impairment is determined as follows:

29 Feb 28 Feb
€000 2016 2015
Trade receivables 304,646 325,024
Less credit insurance and other security (8,080) (11,262)
Net credit risk 296,566 313,762

• • • • • • • • •

117

• • • •

The provision for impairment of trade receivables showed the following movements:

€000 29 Feb
2016
28 Feb
2015
Provision at 1 March 11,262 12,309
Currency translation adjustments/other change (642) (1,643)
Added 2,914 2,480
Used (3,686) (772)
Released (1,768) (1,112)
Provision at 29/28 February 8,080 11,262

The partial release of the provision resulted in interest income of € 27 thousand (prior year: € 17 thousand).

Receivables are as a rule individually reviewed for their collectability and measured on the basis of estimated future cash flows.

The maximum exposure from trade receivables is equivalent to the carrying amount of the trade receivables.

The table below provides information on the credit risks in respect of trade receivables. The maturity profile of trade receivables was as follows:

€000
Trade receivables past due and with no impairment provided:
29 Feb
2016
28 Feb
2015
Up to 30 days 31,286 21,047
31 to 90 days 8,867 7,758
More than 90 days 3,093 3,087
Total 43,246 31,892

The assets which are neither past due nor impaired relate to customers with excellent credit ratings.

The maximum exposure of € 490,748 thousand (prior year: € 492,767 thousand) to credit risk consisted of the carrying amounts of all receivables and other current assets plus contingent liabilities, and was equivalent to the carrying amount of these instruments.

Credit risk, net of credit insurance, bank guarantees and other security (net credit risk), was as follows:

€000 29 Feb
2016
28 Feb
2015
Trade receivables 296,566 313,762
Less credit insurance and other security (161,071) (147,344)
Net credit risk 135,495 166,418

AGRANA maintains business relationships with many large international industrial customers having excellent credit ratings.

Liquidity risk

Liquidity risk is the risk that a company will not be able to meet its financial obligations when due or in sufficient measure.

The AGRANA Group generates liquidity with its business operations and from external financing. The funds are used to fund working capital, investment and business acquisitions.

In order to ensure the Group's solvency at all times and safeguard its financial flexibility, a liquidity reserve is maintained in the form of credit lines and, to the extent necessary, of cash.

To manage the seasonally fluctuating cash flows, both short-term and long-term finance is raised in the course of day-to-day financial management.

The following maturity profile shows the effects of the cash outflows from liabilities as at 29 February 2016 on the Group's liquidity situation. All cash outflows are undiscounted.

Contractual cash outflows in
More
Carrying Up to 4 to 7 to 1 to 2 to 3 to 4 to than
€000 amount Total 3 m 6 m 12 m 2 y 3 y 4 y 5 y 5 y
29 February 2016
Non-derivative
financial payables
Bank loans and overdrafts,
and other loans
from non-Group entities 366,024 376,680 163,912 9,574 42,530 18,063 14,990 105,614 526 21,471
Borrowings from
affiliated companies
in the Südzucker group 165,000 172,732 36,011 1,088 2,141 102,622 760 30,110 0 0
Trade payables 269,892 269,892 262,448 3,217 4,227 0 0 0 0 0
Trade payables and
amounts due to
affiliated companies
in the Südzucker group 11,133 11,133 9,391 5 1,737 0 0 0 0 0
Obligations under
finance leases 2,824 2,973 83 83 166 373 2,268 0 0 0
Financial other payables 61,035 61,035 47,061 3,602 9,348 443 18 18 126 419
875,908 894,445 518,906 17,569 60,149 121,501 18,036 135,742 652 21,890
Derivative
financial payables
Interest rate derivatives 5,675 5,367 384 384 768 1,536 1,524 771 0 0
Currency derivatives 1,273 1,273 1,112 87 74 0 0 0 0 0
Commodity derivatives 5,739 5,739 3,504 375 1,860 0 0 0 0 0
12,687 12,379 5,000 846 2,702 1,536 1,524 771 0 0

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119

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Contractual cash outflows in
More
Carrying Up to 4 to 7 to 1 to 2 to 3 to 4 to than
€000 amount Total 3 m 6 m 12 m 2 y 3 y 4 y 5 y 5 y
28 February 2015
Non-derivative
financial payables
Bank loans and
overdrafts, and other loans
from non-Group entities 378,965 393,772 173,656 8,756 10,768 43,970 18,076 10,855 105,701 21,990
Borrowings from
affiliated companies
in the Südzucker group 250,000 262,472 121,285 1,138 2,239 4,318 102,622 760 30,110 0
Trade payables 291,281 291,281 279,977 2,340 8,964 0 0 0 0 0
Trade payables and
amounts due to
affiliated companies
in the Südzucker group 29,459 29,459 23,429 14 6,016 0 0 0 0 0
Obligations under
finance leases 61 65 6 6 11 42 0 0 0 0
Financial other payables 59,179 59,179 44,275 3,776 9,858 377 586 53 53 201
1,008,945 1,036,228 642,628 16,030 37,856 48,707 121,284 11,668 135,864 22,191
Derivative
financial payables
Interest rate derivatives 6,195 6,491 362 362 725 1,446 1,446 1,434 716 0
Currency derivatives 3,995 3,995 1,867 1,122 1,006 0 0 0 0 0
Commodity derivatives 69 69 40 29 0 0 0 0 0 0
10,259 10,555 2,269 1,513 1,731 1,446 1,446 1,434 716 0

The undiscounted cash outflows as presented are based on the assumption that repayment of liabilities is applied to the earliest maturity date. Interest payments on floating rate financial instruments are determined by reference to the most recent prevailing rates.

Currency risk

The Group's international business operations expose AGRANA to foreign exchange risks from financing and financial investment as well as from trade receivables and trade payables. To measure and control these risks, the AGRANA Group uses Value-at-Risk based on the variance-covariance approach at a 95% confidence level. This involves the measurement of the various currency pairs at the given volatilities and takes into account the correlations between them. The result is stated as the diversified VaR from currencies and is analysed by borrowings and operating business:

Value-at-Risk
Value-at-Risk
from borrowings
from operating
receivables/payables
29 Feb 28 Feb 29 Feb 28 Feb
¤000 2016 2015 2016 2015
Sum of absolute net positions of the currency pairs 143,715 217,750 63,445 91,000
Value-at-Risk diversified 9,959 13,418 5,459 6,804

The following table gives the foreign currency position by currency pair of the Value-at-Risk calculation:

Foreign-currency
position
from borrowings
Foreign-currency
position
from operating
receivables/payables
29 Feb 28 Feb 29 Feb 28 Feb
¤000 2016 2015 2016 2015
Currency pair
EUR/USD 11,797 20,578 5,684 16,264
EUR/HUF 30,692 30,559 4,523 0
EUR/RON 44,161 78,690 8,894 35,282
EUR/RUB 4,140 5,826 3,251 0
EUR/UAH 5,610 7,587 4,530 5,773
EUR/BGN 4,296 0 0 3,440
EUR/ CZK 0 12,127 16,742 0
EUR/PLN 0 0 0 6,766
EUR/BRL 0 4,920 0 0
EUR/ CNY 0 17,826 0 0
EUR/ ZAR 0 3,036 0 0
USD/BRL 7,302 7,073 0 0
USD/ CNY 10,399 0 0 0
USD/MXN 11,582 16,565 3,877 4,648
Other 13,736 12,963 15,944 18,827
Total 143,715 217,750 63,445 91,000

Most of the Group's foreign exchange risk arises in the operating business, when revenues or costs are denominated in a currency other than that of the related costs or revenues, respectively. The foreign currency positions of € 63,445 thousand (prior year: € 91,000 thousand) in the operating activities were mainly in Mexico, the Czech Republic, Romania, Russia, Ukraine and Hungary, as well as a US dollar position in the euro area, and represented a Value-at-Risk of € 5,459 thousand (prior year: € 6,804 thousand).

The AGRANA Group's currency risk from financing arises from borrowings and financial investments not denominated in the local currency of the respective company. The foreign currency positions from financing amounted to € 143,715 thousand (prior year: € 217,750 thousand), with a Value-at-Risk of € 9,959 thousand (prior year: € 13,418 thousand) and pertained largely to Brazil, China, Mexico, Romania, Russia, Ukraine and Hungary for financings in euros and US dollars.

In the Sugar segment, Group companies based in the European Union whose local currency is not the euro are exposed to sugar-regime-induced foreign exchange risk between the euro and their respective local currency, as the beet prices for a given campaign are set in euros EU-wide. The subsidiaries in Romania and Hungary are subject to additional currency risk from raw sugar purchases in US dollars, and some companies are exposed to currency risk from sales of non-quota sugar in US dollars.

• • • • • • • • •

121

• • • •

In the Starch segment, foreign exchange risks arise from borrowings not denominated in local currency.

In the Fruit segment, foreign exchange risks arise when revenue and materials costs are in foreign currency rather than local currency. In addition, risks arise from borrowings not denominated in local currency.

Interest rate risk

The AGRANA Group is exposed to interest rate risks primarily in the euro zone.

Beginning in the year under review, risks from potential changes in interest rates are reported on an "at risk" basis. AGRANA distinguishes between Cash-Flow-at-Risk (CFaR) for variable rate borrowings and Value-at-Risk (VaR) for changes in market interest rates on fixed rate borrowings

CFaR: An increase in interest rates would cause an increase in funding costs from variable rate borrowings. The CFaR analysis is based on the volatilities of the individual funding currencies and the correlations between them.

VaR: The analysis examines the implied risk from a decrease in interest rates, as existing fixed rate borrowings would continue to incur interest costs at a constant rate instead of following the market trend. The different maturities of fixed interest borrowings are taken into account through weighted present values and a potential change in variable interest rates under the modified duration approach.

The CFaR and VaR from borrowings were as follows:

29 Feb 28 Feb
€000 2016 2015
Net variable interest borrowings 333,664 377,898
Cash-Flow-at-Risk diversified 3,542 3,170
Net fixed interest borrowings 199,304 198,751
Value-at-Risk upon change in interest rates 4,662 6,492

The floating rate borrowings are subject to interest rate risk. To hedge against this risk, interest rate swaps were entered into for a portion of the borrowings, thus achieving fixed interest rates on this portion.

Commodity price risk

AGRANA's business activities expose it to market price risk from purchases of commodities and the sale of finished products (ethanol). This is particularly true in the production of bioethanol, where the most important cost factors by far are the prices of the main inputs, corn and wheat. To a lesser but still significant extent, the Sugar segment has exposure to the purchase prices of raw sugar.

At the balance sheet date the Group had open commodity derivative contracts for the purchase of 84,281 tonnes of raw sugar (prior year: 0 tonnes), the purchase of 184,500 tonnes of wheat for the Austrian bioethanol production operations (prior year: 153,500 tonnes) and the purchase of 15,300 tonnes of corn (prior year: 4,700 tonnes), and for the sale of 4,600 tonnes of corn (prior year: 9,050 tonnes) and the sale of 8,250 tonnes of white sugar (prior year: 0 tonnes). These positions represented an aggregate contract amount of € 62,101 thousand (prior year: € 27,462 thousand) and, based on the underlying closing prices, had a combined net negative fair value of € 3,789 thousand (prior year: positive fair value of € 519 thousand).

Legal risks

AGRANA continually monitors changes in the legal setting relevant to its businesses that may lead to a risk situation, and takes risk management actions as necessary. This applies particularly to compliance matters and food and environmental legislation; the Group maintains dedicated staff positions for these areas.

There are currently no pending or threatened civil actions against companies of the AGRANA Group that could have a material impact on the Group's financial position, results of operations and cash flows.

As noted in previous annual reports, the Austrian Federal Competition Authority in 2010 sought a fine under an antitrust case for alleged competition-restricting arrangements with respect to Austria filed against AGRANA Zucker GmbH, Vienna, and Südzucker AG, Mannheim, Germany. To date the Cartel Court has not ruled on the case. AGRANA continues to regard the allegation as unfounded and the fine sought as unwarranted.

10.5. Contingent liabilities and commitments

The guarantees primarily related to bank loans of the joint ventures in the Sugar segment.

29 Feb 28 Feb
€000 2016 2015
Guarantees 49,580 44,727
Warranties, cooperative liabilities 1,647 1,647

The guarantees are not expected to be utilised.

A further contingent liability of € 6,425 thousand (prior year: € 6,600 thousand) related to a claim for recovery of an EU subsidy in Hungary. The management of the company involved believes the likelihood of repayment is low.

Commitments were as presented in the table below:

29 Feb 28 Feb
€000 2016 2015
Present value of lease payments due within 5 years 13,703 14,350
Commitments for the purchase of property, plant and equipment 41,600 41,208
Commitments 55,303 55,558

11. Events after the balance sheet date

No other significant events occurred after the balance sheet date of 29 February 2016 that had a material effect on AGRANA's financial position, results of operations or cash flows.

• • • • • • • • •

123

• • • •

12. Related party disclosures

AGRANA Zucker, Stärke und Frucht Holding AG, Vienna, holds 100% of the ordinary shares of Z&S Zucker und Stärke Holding AG, Vienna, which in turn holds 86.2% of the ordinary shares of AGRANA Beteiligungs-AG. Both holding companies are exempt from the obligation to prepare consolidated financial statements, as their accounts are included in the consolidated financial statements of Südzucker AG, Mannheim, Germany.

Related parties for the purposes of IAS 24 are Südzucker AG, Mannheim, Germany, and Zucker-Beteiligungsgesellschaft m.b.H, Vienna, as shareholders of AGRANA Zucker, Stärke und Frucht Holding AG, Vienna. AGRANA's consolidated financial statements are included in the consolidated accounts of Südzucker AG, Mannheim, Germany.

In addition to Südzucker AG, Mannheim, Germany, and its subsidiaries ("Südzucker group"), other related parties are RAIFFEISEN-HOLDING NIEDERÖSTEREICH-WIEN regGenmbH, Vienna, and its subsidiaries ("Companies with significant influence").

Equity-accounted joint ventures that are jointly controlled, as well as unconsolidated subsidiaries, are also related parties as defined in IAS 24.

Business relationships with related parties at the balance sheet date can be analysed as follows:

Companies Non
with consolidated
Südzucker significant Joint sub-
¤000 Group influence ventures sidiaries Total
2015 16
Revenue 86,174 17,341 55,243 6 158,764
Operating expenses (69,205) (601) (80,326) (618) (150,750)
Credit relationships (165,773) (54,697) 0 0 (220,470)
Participation capital 0 5,294 0 0 5,294
Bank balances and
current receivables 0 2,363 12,519 50 14,932
Net trade receivables/(payables)
for goods 10,554 844 (2,064) (146) 9,188
Net interest (expense)/income (5,322) 5,153 1,139 0 970
Guarantees issued 0 0 46,000 8,200 54,200
Guarantees utilised 0 0 43,694 4,493 48,187
2014 15
Revenue
85,088 16,110 55,705 22 156,925
Operating expenses (73,174) (766) (80,530) (5,010) (159,480)
Credit relationships (250,821) (98,907) 0 (3,675) (353,403)
Participation capital 0 91,188 0 0 91,188
Bank balances and
current receivables 0 37,933 1,621 773 40,327
Net trade receivables/(payables)
for goods 2,185 164 1,911 (1,211) 3,049
Net interest (expense)/income (6,255) 3,757 1,071 (6) (1,433)
Guarantees issued 0 0 48,200 8,200 56,400
Guarantees utilised 0 0 38,500 2,836 41,336

Unlike the prior-year annual report, transactions with the other owners of the joint ventures are not reported.

In addition, at the balance sheet date, borrowings from related parties amounted to € 220,470 thousand (prior year: € 353,403 thousand); these borrowings were on normal commercial terms. Of this total, € 130,000 thousand represented non-current borrowings (prior year: € 130,000 thousand).

For fully consolidated subsidiaries, the Group issued guarantees in favour of companies with significant influence of € 5,000 thousand (prior year: € 17,958 thousand), of which an amount of € 1,022 thousand (prior year: € 9,345 thousand) was utilised.

The remuneration of the members of the Management Board of AGRANA Beteiligungs-AG totalled € 3,183 thousand (prior year: € 3,365 thousand), consisting of total fixed base salaries of € 1,445 thousand (prior year: € 1,693 thousand) and a total performance-based, variable component of € 1,738 thousand (prior year: € 1,672 thousand). The performance-based elements of the compensation are linked to the amount of the dividend payable for the last three financial years. The Management Board member of AGRANA Beteiligungs-AG appointed on the basis of the syndicate agreement between Südzucker AG, Mannheim, Germany, and Zucker-Beteiligungsgesellschaft m.b.H, Vienna, does not receive compensation for serving on the Management Board.

On 3 July 2015 the Annual General Meeting approved an annual aggregate remuneration for the Supervisory Board of € 250 thousand (prior year: € 250 thousand) and delegated to the Supervisory Board Chairman the responsibility for allocating this sum. The amount paid to the individual Supervisory Board members is tied to their function on the Board. No meeting fees were paid in the year under review.

Post-employment benefits granted to the Management Board members Johann Marihart and Fritz Gattermayer and the former Management Board member Walter Grausam under the Company's plan are pension, disability insurance and survivor benefits. The pension becomes available when the pension eligibility criteria of the Austrian public pension scheme (ASVG) are met. The amount of the pension is calculated as a percentage of a contractually agreed assessment base. In the event of early retirement within ASVG rules, the amount of the pension is reduced. For the pension of Stephan Büttner, there is a defined contribution obligation, which can be claimed after the recipient has reached 55 years of age if the employment contract is terminated by the employer. For the 2015|16 financial year, pension fund contributions of € 720 thousand were paid (prior year: € 2,955 thousand).

The retirement benefit obligations in respect of the Management Board are administered by an external pension fund. In the balance sheet at 29 February 2016, within the item "retirement and termination benefit obligations", an amount of € 6,646 thousand was recognised for pension obligations (prior year: € 8,058 thousand) and an amount of € 1,986 thousand was recognised for termination benefit obligations (prior year: € 1,906 thousand).

In the event that a Management Board appointment is withdrawn, there are severance pay obligations in accordance with the provisions of the Employees Act or the Occupational Pension Plan Act.

Information on the Management Board and Supervisory Board is provided on page 124.

• • • • • • • • •

125

• • • •

On 25 April 2016 the Management Board of AGRANA Beteiligungs-AG released the consolidated financial statements for review by the Supervisory Board and the Audit Committee and for presentation to the Annual General Meeting and subsequent publication. The Supervisory Board has responsibility for reviewing the consolidated financial statements and stating whether it approves them.

Vienna, 25 April 2016

The Management Board of AGRANA Beteiligungs-AG

Fritz Gattermayer Thomas Kölbl

Johann Marihart Stephan Büttner Chief Executive Officer Member of the Management Board

Member of the Management Board Member of the Management Board

Consolidated financial statements 126 List of members of AGRANA's boards

Management Board

Johann Marihart Chief Executive Officer

Stephan Büttner Member

Fritz Gattermayer Member

Thomas Kölbl Member

Supervisory Board

Erwin Hameseder Chairman

Wolfgang Heer First Vice-Chairman

Klaus Buchleitner Second Vice-Chairman

Jochen Fenner Member

Hans-Jörg Gebhard Member

Ernst Karpfinger Member

Thomas Kirchberg Member

Josef Pröll Member

Employee representatives

Thomas Buder Chairman of the Group Staff Council and the Central Staff Council

Gerhard Glatz

Karl Orthaber

Stephan Savic

• • • • • • • • •

127

• • • •

Subsidiaries and business interests 127 Subsidiaries and business interests

at 29 February 2016

Equity interest Equity interest
29 Feb 2016 28 Feb 2015
Balance Registered In- In
Name of company sheet date office Country Direct direct1 Direct direct1
AGRANA Beteiligungs-Aktiengesellschaft
(the parent company) 29 Feb 2016 Vienna Austria
I. Subsidiaries
Fully consolidated subsidiaries
AGRANA AGRO S.r.l. 29 Feb 2016 Roman Romania 92.10% 92.10%
AGRANA BIH Holding GmbH 29 Feb 2016 Vienna Austria 75.00% 75.00%
AGRANA Bulgaria AD2 Sofia Bulgaria 100.00%
AGRANA BUZAU S.r.l. 29 Feb 2016 Buzău Romania 92.10% 92.10%
AGRANA d.o.o. 31 Dec 2015 Brčko Bosnia- 75.00% 75.00%
Herzegovina
AGRANA Fruit Argentina S.A. 29 Feb 2016 Buenos Aires Argentina 99.99% 99.99%
AGRANA Fruit Australia Pty Ltd. 29 Feb 2016 Central Australia 100.00% 100.00%
Mangrove
AGRANA Fruit Austria GmbH 29 Feb 2016 Gleisdorf Austria 100.00% 100.00%
AGRANA Fruit Brasil Indústria Comércio 31 Dec 2015 São Paulo Brazil 100.00% 100.00%
Importação e Exportação Ltda.
AGRANA Fruit Brasil Participacoes Ltda. 31 Dec 2015 São Paulo Brazil 100.00% 100.00%
AGRANA Fruit Dachang Co., Ltd. 31 Dec 2015 Dachang China 100.00% 100.00%
AGRANA Fruit Fiji Pty Ltd. 29 Feb 2016 Sigatoka Fiji 100.00% 100.00%
AGRANA Fruit France S.A. 29 Feb 2016 Paris France 100.00% 100.00%
AGRANA Fruit Germany GmbH 29 Feb 2016 Konstanz Germany 100.00% 100.00%
AGRANA Fruit Istanbul 29 Feb 2016 Zincirlikuyu Turkey 100.00% 100.00%
Gida Sanayi ve Ticaret A.S.
AGRANA Fruit Korea Co. Ltd. 29 Feb 2016 Seoul South Korea 100.00% 100.00%
AGRANA Fruit Latinoamerica S. de R.L. de C.V. 31 Dec 2015 Michoacán Mexico 100.00% 100.00%
AGRANA Fruit Luka TOV 31 Dec 2015 Vinnytsia Ukraine 99.97% 99.97%
AGRANA Fruit México, S.A. de C.V. 31 Dec 2015 Michoacán Mexico 100.00% 100.00%
AGRANA Fruit Polska SP z.o.o. 29 Feb 2016 Ostrołęka Poland 100.00% 100.00%
AGRANA Fruit S.A.S. 29 Feb 2016 Paris France 100.00% 100.00%
AGRANA Fruit Services GmbH 29 Feb 2016 Vienna Austria 100.00% 100.00%
AGRANA Fruit Services Inc.2 Brecksville USA 100.00%
AGRANA Fruit Services S.A.S. 29 Feb 2016 Paris France 100.00% 100.00%
AGRANA Fruit South Africa (Proprietary) Ltd. 29 Feb 2016 Cape Town South Africa 100.00% 100.00%
AGRANA Fruit Ukraine TOV 31 Dec 2015 Vinnytsia Ukraine 99.80% 99.80%
AGRANA Fruit US, Inc. 29 Feb 2016 Brecksville USA 100.00% 100.00%
AGRANA Group-Services GmbH 29 Feb 2016 Vienna Austria 100.00% 100.00%
AGRANA Internationale Verwaltungs- 29 Feb 2016 Vienna Austria 100.00% 100.00%
und Asset-Management GmbH
AGRANA J&F Holding GmbH2 Vienna Austria 98.91% 1.09%
AGRANA Juice Denmark A/S 29 Feb 2016 Køge Denmark 50.01% 50.01%
AGRANA Juice Magyarorzság Kft. 29 Feb 2016 Vásárosnamény Hungary 50.01% 50.01%
AGRANA Juice Poland Sp. z.o.o.2 Bialobrzegi Poland 50.01%
AGRANA Juice Romania Vaslui S.r.l. 31 Dec 2015 Vaslui Romania 50.01% 50.01%
AGRANA Juice Sales & Marketing GmbH 29 Feb 2016 Bingen Germany 50.01% 50.01%
AUSTRIA JUICE Germany GmbH 29 Feb 2016 Bingen Germany 50.01% 50.01%
AUSTRIA JUICE Ukraine LLC 31 Dec 2015 Vinnytsia Ukraine 50.01% 50.01%
AGRANA JUICE (XIANYANG) CO., LTD 31 Dec 2015 Xianyang City China 50.01% 50.01%
AGRANA LIESTI S.R.L.2 Bucharest Romania 99.92%
AGRANA Magyarország Értékesitési Kft. 29 Feb 2016 Budapest Hungary 87.64% 87.64%

2 Merged in the 2015|16 financial year.

Equity interest Equity interest
29 Feb 2016 28 Feb 2015
Balance Registered In- In
Name of company sheet date office Country Direct direct1 Direct direct1
AGRANA Marketing- und 29 Feb 2016 Vienna Austria 100.00% 100.00%
Vertriebsservice Gesellschaft m.b.H.
Agrana Nile Fruits Processing SAE 29 Feb 2016 Qalyoubia Egypt 51.00% 51.00%
AGRANA Research & Innovation
Center GmbH 29 Feb 2016 Vienna Austria 100.00% 100.00%2
AGRANA Stärke GmbH 29 Feb 2016 Vienna Austria 98.91% 1.09% 98.91% 1.09%
AGRANA TANDAREI S.r.l. 29 Feb 2016 Ţăndărei Romania 92.10% 92.10%
AGRANA Trading EOOD 29 Feb 2016 Sofia Bulgaria 100.00% 100.00%
AGRANA URZICENI S.R.L.2 Bucharest Romania 99.92%
AGRANA Zucker GmbH 29 Feb 2016 Vienna Austria 98.91% 1.09% 98.91% 1.09%
AGRANA ZHG Zucker Handels GmbH 29 Feb 2016 Vienna Austria 100.00% 100.00%
AUSTRIA JUICE GmbH 29 Feb 2016 Kröllendorf/ Austria 50.01% 50.01%
Allhartsberg
Biogáz Fejleszto Kft. 29 Feb 2016 Kaposvár Hungary 87.64% 87.64%
Dirafrost FFI N. V. 29 Feb 2016 Herk-de-Stad Belgium 100.00% 100.00%
Dirafrost Maroc SARL 29 Feb 2016 Laouamra Morocco 100.00% 100.00%
Financière Atys S.A.S. 29 Feb 2016 Paris France 100.00% 100.00%
INSTANTINA Nahrungsmittel Entwicklungs- 29 Feb 2016 Vienna Austria 66.67% 66.67%
und Produktionsgesellschaft m.b.H.
Koronás Irodaház Szolgáltató 29 Feb 2016 Budapest Hungary 87.60% 87.60%
Korlátolt Felelösségü Társaság
Magyar Cukorgyártó és Forgalmazó Zrt. 29 Feb 2016 Budapest Hungary 87.60% 87.60%
Moravskoslezské Cukrovary A.S. 29 Feb 2016 Hrušovany Czech 100.00% 97.66%
Republic
o.o.o. AGRANA Fruit Moscow Region 31 Dec 2015 Serpuchov Russia 100.00% 100.00%
S.C. A.G.F.D. Tandarei s.r.l. 29 Feb 2016 Ţăndărei Romania 100.00% 100.00%
S.C. AGRANA Romania S.A. 29 Feb 2016 Bucharest Romania 92.02% 92.02%
Slovenské Cukrovary s.r.o. 29 Feb 2016 Sereď Slovakia 100.00% 100.00%
AUSTRIA JUICE Poland Sp. z.o.o. 29 Feb 2016 Chełm Poland 50.01% 50.01%
Yube d.o.o. 31 Dec 2015 Požega Serbia 100.00% 100.00%
Non-consolidated subsidiaries
AGRANA Amidi srl 29 Feb 2016 Sterzing Italy 100.00% 100.00%
Reporting date: 29 Feb 2016 I Equity: € 11.4 thousand I Profit for the period: € 1.1 thousand
AGRANA Croatia d.o.o. 31 Dec 2015 Zagreb Croatia 100.00% 100.00%
Reporting date: 31 Dec 2015 I Equity: € 2.8 thousand I Profit for the period: € 0.2 thousand
AGRANA Makedonija DOOEL Skopje 31 Dec 2015 Skopje Macedonia 100.00% 100.00%
Reporting date: 31 Dec 2015 I Equity: € 2.8 thousand I Profit for the period: € 0.9 thousand
AGRANA Skrob s.r.o. 31 Dec 2015 Hrušovany Czech 100.00% 100.00%
Reporting date: 31 Dec 2015 I Equity: € 70.3 thousand I Loss for the period: (€ 18.7 thousand) Republic
Cukoripari Egyesüles 31 Dec 2015 Budapest Hungary 38.78% 38.78%
Reporting date: 31 Dec 2015 I Equity: € 143.6 thousand I Profit for the period: € 32.1 thousand
DELHIA SHELF s.r.o. 31 Dec 2015 Hrušovany Czech 100.00% 100.00%
Reporting date: 31 Dec 2015 I Equity: € 0.0 thousand I Profit for the period: € 0.0 thousand Republic
Dr.Hauser Gesellschaft m.b.H. i.L. 30 Sep 2015 Hamburg Germany 100.00% 100.00%
Reporting date: 30.09.2015 I Equity: € 39.8 thousand I Loss for the period: (€ 8.7 thousand)
Österreichische Rübensamenzucht 30 Apr 2015 Vienna Austria 86.00% 86.00%
Gesellschaft m.b.H.
Reporting date: 30.04.2015 I Equity: € 1.894.5 thousand I Profit for the period: € 72.5 thousand
PERCA s.r.o. 31 Dec 2015 Hrušovany Czech 100.00% 97.66%
Reporting date: 31 Dec 2015 I Equity: € 531.4 thousand I Profit for the period: € 55.4 thousand Republic

2 Merged in the 2015|16 financial year.

• • • • • • • • •

129

• • • •

Equity interest Equity interest
29 Feb 2016 28 Feb 2015
Balance Registered In- In
Name of company sheet date office Country Direct direct Direct direct
II. Joint ventures
Equity-accounted joint ventures
STUDEN Group:
"AGRAGOLD" d.o.o. 31 Dec 2015 Brčko Bosnia- 50.00% 50.00%
Herzegovina
AGRAGOLD d.o.o. 31 Dec 2015 Zagreb Croatia 50.00% 50.00%
AGRAGOLD dooel Skopje 31 Dec 2015 Skopje Macedonia 50.00% 50.00%
AGRAGOLD trgovina d.o.o. 31 Dec 2015 Ljubljana Slovenia 50.00% 50.00%
AGRANA-STUDEN Albania sh.p.k 31 Dec 2015 Tirana Albania 50.00% 50.00%
AGRANA-STUDEN Beteiligungs GmbH 29 Feb 2016 Vienna Austria 50.00% 50.00%
AGRANA Studen Sugar Trading GmbH 29 Feb 2016 Vienna Austria 50.00% 50.00%
Company for trade and services 29 Feb 2016 Belgrade Serbia 50.00% 50.00%
AGRANA-STUDEN Serbia d.o.o. Beograd
STUDEN-AGRANA Rafinerija Secera d.o.o. 31 Dec 2015 Brčko Bosnia-
Herzegovina
50.00% 50.00%
HUNGRANA Group:
GreenPower E85 Kft 31 Dec 2015 Szabadegyháza Hungary 50.00% 50.00%
HUNGRANA Keményitö- és 31 Dec 2015 Szabadegyháza Hungary 50.00% 50.00%
Isocukorgyártó és Forgalmazó Kft.
HungranaTrans Kft. 31 Dec 2015 Szabadegyháza Hungary 50.00% 50.00%
Non-consolidated joint ventures
SCO STUDEN & CO. BRASIL 31 Dec 2015 São Paulo Brazil 50.00% 50.00%
EXPORTACAO E IMPORTACAO LTDA.

Reporting date: 31 Dec 2015 I Equity: (€ 12.5 thousand) I Loss for the period: (€ 2.5 thousand}

• • • • • • • • •

131

• • • •

Statement by the members of the Management Board

In accordance with section 82 (4) Austrian Stock Exchange Act, the undersigned members of the Management Board, as the legal representatives of AGRANA Beteiligungs-AG, confirm to the best of their knowledge that:

█ the consolidated financial statements of AGRANA Beteiligungs-AG for the year ended 29 February 2016, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, give a true and fair view of the financial position, results of operations and cash flows of the AGRANA Group;

█ the Group management report for the 2015|16 financial year presents the business performance, financial results and situation of the AGRANA Group so as to provide a true and fair view of the Group's financial position, results of operations and cash flows, together with a description of the principal risks and uncertainties faced by the Group.

Vienna, 25 April 2016

Johann Marihart Stephan Büttner Chief Executive Officer Member of the Management Board Present responsibilities: Business Strategy, Present responsibilities: Finance, Controlling, Production, Quality Management, Human Resources, Treasury, Information Technology and Organisation, Communication (including Investor Relations), Mergers & Acquisitions, Compliance, Legal, Research and Development, and Starch Segment and Fruit Segment

Fritz Gattermayer Thomas Kölbl Member of the Management Board Member of the Management Board Present responsibilities: Sales, Raw Materials, Responsibility on Internal Audit Purchasing & Logistics, and Sugar Segment

Independent auditor's report 132 Independent auditor's report [Translation]

Report on the consolidated financial statements

We have audited the accompanying consolidated financial statements of AGRANA Beteiligungs-Aktiengesellschaft, Vienna, that comprise the consolidated statement of financial position as of 29 February 2016, the consolidated income statement, the consolidated statement of cash flows and the consolidated statement of changes in equity for the fiscal year then ended, and the notes.

Management's responsibility for the consolidated financial statements

The Company's management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU, and the additional requirements pursuant to Section 245a UGB (Austrian Commercial Code) and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Austrian Standards on Auditing. Those standards require that we comply with International Standards on Auditing – ISA. In accordance with International Standards on Auditing, we are required to comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Group's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

• • • • • • • • •

133

• • • •

Opinion

Our audit did not give rise to any objections. In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as of 29 February 2016 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU.

Report on the management report for the Group

Pursuant to statutory provisions, the management report for the Group is to be audited as to whether it is consistent with the consolidated financial statements and as to whether the other disclosures are not misleading with respect to the Company's position. The auditor's report also has to contain a statement as to whether the management report for the Group is consistent with the consolidated financial statements and whether the disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.

In our opinion, the management report for the Group is consistent with the consolidated financial statements. The disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.

Vienna, 25 April 2016

KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft

signed by:

Mag. Rainer Hassler Wirtschaftsprüfer (Austrian Chartered Accountant)

Parent company: financial statements and management report 2015|16

AGRANA Beteiligungs-AG under Austrian Commercial Code (UGB)

  • Parent company management report1 136
  • Parent company financial statements 159
  • Parent company income statement 160
  • Parent company balance sheet 161
  • Notes to the parent company financial statements1 162

Statement by the members of the Management Board 185

• • • • • • • • • • • •

• • • • • • • • •

135

• • • •

  • Independent auditor's report 186
  • Proposed appropriation of profit 188

Parent company management report

for the year ended 29 February 2016

INHALTSVERZEICHNIS

Überblick Beteiligungen der AGRANA Beteiligungs-Aktiengesellschaft Geschäftsverlauf und wirtschaftliche Lage der AGRANA Beteiligungs-Aktiengesellschaft Umwelt und Nachhaltigkeit Forschung und Entwicklung Personal- und Sozialbericht Risikomanagement und Internes Kontrollsystem Berichterstattung gemäß § 243a Abs. 2 UGB Kapital-, Anteils-, Stimm- und Kontrollrechte Corporate Governance-Bericht Zweigniederlassungen Ereignisse nach dem Bilanzstichtag Prognosebericht

• • • • • • • • •

137

• • • •

ÜBERBLICK

Die AGRANA Beteiligungs-Aktiengesellschaft ist als international ausgerichtetes österreichisches Industrieunternehmen in ihrer Konzerntätigkeit in den Segmenten Zucker und Stärke hauptsächlich in Europa und im Segment Frucht weltweit tätig und strebt in diesen Märkten eine führende Position in der industriellen Veredelung von agrarischen Rohstoffen an. Damit ist die AGRANA Beteiligungs-Aktiengesellschaft die Holding-Gesellschaft der AGRANA-Gruppe ("AGRANA").

Der Konzern verfolgt einen an den jeweiligen lokalen Marktgegebenheiten ausgerichteten Wachstumskurs. Langfristige und stabile Kunden- und Lieferantenbeziehungen, respektvolles Verhalten gegenüber den Stakeholdern sowie die kontinuierliche Steigerung des Unternehmenswertes sind wichtige Eckpfeiler die an den Grundsätzen nachhaltigen Wirtschaftens ausgerichteten Unternehmensstrategie.

Ziel von AGRANA ist es, sowohl global agierenden als auch regional tätigen Kunden weltweit hohe Produktqualität, optimalen Service sowie innovative Ideen und Know-how in der Produktentwicklung zu bieten.

Die strategischen Ziele der Konzernsegmente, die sich in der AGRANA Beteiligungs-Aktiengesellschaft in den Beteiligungsverhältnissen wiederspiegeln, stehen in einer synergetischen Wechselwirkung:

AGRANA kontrolliert und steuert die produktbezogene Wertschöpfungskette vom Einkauf der agrarischen Rohstoffe bis zu den daraus gewonnenen industriellen Vorprodukten, im Segment Zucker auch bis zum Endprodukt für den Konsumenten.

Das Unternehmen nutzt das konzerneigene strategische Know-how über die Segmente hinweg. Dies betrifft v.a. die landwirtschaftliche Kontraktwirtschaft und Rohstoffbeschaffung, Kenntnisse von Kundenbedürfnissen und Märkten, die Möglichkeiten segmentübergreifender Produktentwicklungen sowie Synergien in der Logistik, im Einkauf, Verkauf und im Finanzbereich. Damit wird die Basis für eine gute Marktstellung gegenüber den Mitbewerbern in allen Produktgruppen sowie die Innovationskraft und die gute Kostenposition der AGRANA geschaffen.

AGRANA verfolgt im Rahmen ihrer Geschäftstätigkeit das Ziel, den von ihr beeinflussbaren Teil der Wertschöpfungskette möglichst nachhaltig zu gestalten. Unter Nachhaltigkeit versteht AGRANA in diesem Zusammenhang v.a. die folgenden drei, für alle Geschäftssegmente gültigen, Aspekte:

  • Verwertung von annähernd 100 % der eingesetzten agrarischen Rohstoffe und Nutzung emissionsarmer Technologien, um Auswirkungen auf die Umwelt zu minimieren,
  • Achtung aller Stakeholder und Gemeinschaften, in denen das Unternehmen tätig ist, sowie
  • Zusammenarbeit in langfristigen Partnerschaften.

Rund 8.500 Mitarbeiter an 53 Produktionsstandorten auf allen fünf Kontinenten erwirtschafteten im Geschäftsjahr 2015/16 einen Konzernumsatz von rund 2,5 Mrd. € (VJ rd. 2,5 Mrd. €). Die AGRANA Beteiligungs-Aktiengesellschaft notiert seit 1991 im Prime Market Segment der Wiener Börse.

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BETEILIGUNGEN DER AGRANA BETEILIGUNGS-AKTIENGESELLSCHAFT

Die Segmente der AGRANA-Gruppe spiegeln sich in der AGRANA Beteiligungs-Aktiengesellschaft im Finanzanlagevermögen unter den Beteiligungen wider.

Die weiteren Beteiligungen der AGRANA-Beteiligungs-Aktiengesellschaft werden bis auf die INSTANTINA Nahrungsmittel Entwicklungs- und Produktions GmbH zu 100% gehalten. Die restlichen Anteile auf 100 % (33,33 %) der INSTANTINA Nahrungsmittel Entwicklungs- und Produktions GmbH werden von der KRÜGER Gesellschaft m.b.H. & Co. KG, Deutschland gehalten.

Die restlichen Anteile auf 100 % der einzelnen "Segment-Gesellschaften" werden von der Tochtergesellschaft AGRANA Marketing- und Vertriebsservice Gesellschaft m.b.H. gehalten.

AGRANA Zucker GmbH

Die AGRANA Zucker GmbH ist als Dachgesellschaft für die Zuckeraktivitäten des Konzerns operativ in Österreich tätig und fungiert als Holding für die Zucker-Beteiligungen in Ungarn, Tschechien, der Slowakei, Rumänien, Bulgarien und Bosnien-Herzegowina. Der Zuckervertrieb sowie der Vertrieb der Gastronomie-Produkte der zur PortionPack Europe-Gruppe gehörenden Hellma Lebensmittel-Verpackungs Ges.m.b.H. erfolgen ebenfalls durch die AGRANA Zucker GmbH.

Geschäftsentwicklung

SEGMENT ZUCKER

Veränderung
2015/ 16 2014/ 15 in % / pp 2013/ 14
Umsatzerlöse (brutto) t€ 739.912 812.265 -8,9% 1.049.780
Umsätze zwischen den Segmenten t€ -67.268 -81.127 -17,1% -86.900
Umsatzerlöse t€ 672.644 731.138 -8,0% 962.880
EBI T DA 1 t€ 25.397 29.355 -13,5% 64.197
Operatives Ergebnis t€ 2.764 9.699 -71,5% 45.423
Ergebnis aus nach der Equity-Methode
einbezogenen Gemeinschaftsunternehmen
t€ 1.542 -1.721 -189,6% -933
Ergebnis aus Sondereinflüssen t€ 0 1.002 -100,0% 4.677
Ergebnis der Betriebstätigkeit (EBI T ) t€ 4.306 8.980 -52,0% 49.167
EBI T - Marge
%
0,6 1,2 -0,6 0,5
I nvestitionen 2 t€ 46.102 34.476 33,7% 43.117
Mitarbeiter 3 2.185 2.326 -6,1% 2.276

1 Operatives Ergebnis vor operativen Abschreibungen

2 In S achanlagen und immaterielle Vermögensw erte, ausgenommen Geschäfts-/Firmenw erte

3 Durchschnittlich im Geschätsjahr beschäftigte Vollzeitquivalente ( FT Es - Full-time equivalents)

Im Geschäftsjahr 2015|16 sank der Umsatz im Segment Zucker um 8,9 % auf 740 (Vorjahr: 812) Mio. €. Die Reduktion war auf stark rückläufige Verkaufspreise zurückzuführen.

Das Ergebnis der AGRANA-STUDEN-Gruppe, das nach der Equity-Methode in den Konzernabschluss einbezogen wird, wirkte sich positiv auf das Ergebnis der Betriebstätigkeit (EBIT) des Segmentes Zucker aus, was im Wesentlichen auf den niedrigen Weltmarktpreis für Roh- und Weißzucker und der guten Auslastung der Raffiniere in Bosnien-Herzegowina zurückzuführen war.

Das im Geschäftsjahr 2014|15 erzielte Ergebnis aus Sondereinflüssen resultierte aus EU-Rückerstattungen in Zusammenhang mit der Produktionsabgabe im Segment Zucker.

Der Anstieg der Investitionen um 33,7 % auf 46 (Vorjahr: 34) Mio. € resultiert im Wesentlichen aus der Erweiterung der Verdampfstation in Leopoldsdorf|Österreich, der Vergrößerung der Melasseentzuckerungsanlage in Tulln|Österreich sowie der Vollinbetriebnahme der Abpackungsanlage des neuen Verpackungszentrums in Kaposvár|Ungarn.

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AGRANA Stärke GmbH

Das Segment Stärke umfasst mit der AGRANA Stärke GmbH die drei österreichischen Fabriken in Aschach (Maisstärke), Gmünd (Kartoffelstärke) und Pischelsdorf (integrierte Weizenstärke- und Bioethanolanlage). Zudem führt und koordiniert die Gesellschaft die internationalen Beteiligungen in den Bereichen Stärke und Bioethanol in Ungarn und Rumänien.

Geschäftsentwicklung

SEGMENT STÄRKE

Veränderung
2015/ 16 2014/ 15 in % / pp 2013/ 14
Umsatzerlöse (brutto)
t€
728.730 708.233 2,9% 716.650
Umsätze zwischen den Segmenten
t€
-7.164 -8.102 -11,6% -9.957
Umsatzerlöse
t€
721.566 700.131 3,1% 706.693
EBI T DA 1
t€
64.884 49.004 32,4% 44.732
Operatives Ergebnis
t€
42.846 27.038 58,5% 24.574
Ergebnis aus nach der Equity-Methode
t€
einbezogenen Gemeinschaftsunternehmen
22.981 27.093 -15,2% 29.325
Ergebnis der Betriebstätigkeit (EBI T )
t€
65.827 54.131 21,6% 53.899
EBI T - Marge
%
9,1 7,7 1,4 7,6
t€
I nvestitionen 2
28.151 13.743 104,8% 35.025
Mitarbeiter 3 870 863 0,8% 858

1 Operatives Ergebnis vor Abschreibungen

2 In S achanlagen und immaterielle Vermögensw erte, ausgenommen Geschäfts-/Firmenw erte

3 Durchschnittlich im Geschätsjahr beschäftigte Vollzeitquivalente ( FT Es - Full-time equivalents)

Der Umsatz des Segmentes Stärke im Geschäftsjahr 2015|16 konnte um 2,9 % auf 729 (Vorjahr: 708) Mio. € gesteigert werden. Hauptgrund dafür waren im Vergleich zum Vorjahr deutlich höhere Ethanolpreise und daraus resultierend Umsatzzuwächse.

Im Geschäftsjahr 2015|16 stieg der Umsatz der ungarischen, nach der Equity-Methode einbezogenen HUNGRANA-Gruppe geringfügig. Höheren Umsätzen bei Bioethanol standen jedoch gesunkene Verzuckerungsproduktverkaufserlöse gegenüber. Trotz geringerer Rohstoff- und Energiepreise lag das Ergebnis der Equity-Beteiligung aufgrund gesunkener Verkaufspreise für Verzuckerungsprodukte unter dem Vorjahr.

Der Anstieg der Investitionen resultiert im Wesentlichen aus dem Projekt "Werksausbau" in Aschach|Österreich, einen Trockenmischanlage in Gmünd|Österreich sowie der Inbetriebnahme eines neuen Wärmetauschers in Pischelsdorf|Österreich. Zusätzlich wurden im Geschäftsjahr 2015|16 in den HUNGRANA-Gesellschaften Investitionen im Ausmaß von 16,8 Mio. € (Vorjahr: 11,6 Mio. €) getätigt.

AGRANA Internationale Verwaltungs- und Asset-Management GmbH

Die AGRANA Internationale Verwaltungs- und Asset-Management GmbH fungiert als Holding für sämtliche nationale und internationale Tochtergesellschaften im Segment Frucht. Die Koordination und operative Führung für den Bereich Fruchtzubereitungen erfolgt durch die Holdinggesellschaft AGRANA Fruit S.A.S. mit Sitz in Mitry-Mory|Frankreich. Im Bereich Fruchtsaftkonzentrate operiert als operative Holding die AUSTRIA Juice GmbH mit Sitz in Kröllendorf|Österreich.

Geschäftsentwicklung

SEGMENT FRUCHT

Veränderung
2015/ 16 2014/ 15 in % / pp 2013/ 14
Umsatzerlöse (brutto)
t€
1.084.085 1.062.510 2,0% 1.172.672
Umsätze zwischen den Segmenten
t€
-648 -267 142,7% -529
Umsatzerlöse
t€
1.083.437 1.062.243 2,0% 1.172.143
t€
EBI T DA 1
101.676 103.556 -1,8% 105.326
Operatives Ergebnis
t€
61.876 65.280 -5,2% 64.604
Ergebnis aus Sondereinflüssen
t€
-3.054 -6.672 -54,2% -786
Ergebnis der Betriebstätigkeit (EBI T )
t€
58.822 58.608 0,4% 63.818
EBI T - Marge
%
5,4 5,5 -0,1 5,4
I nvestitionen 2
t€
41.730 42.990 -2,9% 51.814
Mitarbeiter 3 5.455 5.519 -1,2% 5.371

1 Operatives Ergebnis vor Abschreibungen

2 In S achanlagen und immaterielle Vermögensw erte, ausgenommen Geschäfts-/Firmenw erte

3 Durchschnittlich im Geschätsjahr beschäftigte Vollzeitquivalente ( FT Es - Full-time equivalents)

Der Umsatz im Segment Frucht verzeichnete im Geschäftsjahr 2015|16 einen leichten Anstieg von 2,0 % auf 1.084 (Vorjahr: 1.063) Mio. €. Dies resultiert vor allem aus dem Geschäftsbereich Fruchtzubereitungen, was einerseits auf gestiegene Verkaufspreise und andererseits auf eine Absatzsteigerung zurückzuführen ist. Im Gegensatz dazu war der Umsatz im Bereich Fruchtsaftkonzentrat, hauptsächlich durch den Preisverfall bei Apfelsaftkonzentraten aus der Ernte 2014, deutlich rückläufig.

Das Ergebnis aus Sondereinflüssen in Höhe von -3 Mio € resultiert im Wesentlichen aus dem Restrukturierungsprojekt der Dirafrost FFI N.V., Herk-de-Stad|Belgien, wobei der Großteil der damit zusammenhängenden Einmalkosten bereits im Konzernjahresabschluss 2014|15 bilanziert wurde. Einige Aktivitäten der Dirafrost in Belgien wurden eingestellt und verlagert; ein Hauptziel des Projektes war die Verbesserung der Effizienz in der Produktion von gefrorenen Früchten und Fertigprodukten.

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INSTANTINA Nahrungsmittel Entwicklungs- und Produktions Gesellschaft m.b.H.

Die INSTANTINA Nahrungsmittel Entwicklungs- und Produktions Gesellschaft m.b.H. ist auf die Entwicklung und Produktion von Instantprodukten spezialisiert und ist dem Segment Zucker zugeordnet.

AGRANA Research & Innovation Center GmbH

Bei der AGRANA Research & Innovation Center GmbH, Tulln (vormals Zuckerforschung Tulln Ges.m.b.H.) werden schwerpunktmäßig die Forschungs- und Entwicklungsaktivitäten für Zucker und Stärke der AGRANA-Gruppe gebündelt.

AGRANA Marketing- und Vertriebsservice Gesellschaft m.b.H.

Die AGRANA Marketing- und Vertriebsservice Gesellschaft m.b.H. fungiert als Holding Gesellschaft und hält neben der AGRANA Beteiligungs-Aktiengesellschaft die Anteile an AGRANA Zucker GmbH, AGRANA Stärke GmbH und AGRANA Internationale Verwaltungs- und Asset-Management GmbH.

AGRANA Group Services GmbH

Die AGRANA Group Services GmbH erfüllt im Konzern die Finanzierungsfunktion und betreibt das Cash-Pooling. Sie ist, wie die Holding, dem Segment Zucker zugeordnet.

GESCHÄFTSVERLAUF UND WIRTSCHAFTLICHE LAGE DER AGRANA BETEILIGUNGS-AKTIENGESELLSCHAFT

basierend auf dem Jahresabschluss nach UGB zum 29. Februar 2016

Veränderung
Geschäftsentwicklung 2015/ 16 2014/ 15 in % 2013/ 14
Umsatzerlöse t€ 11.693 11.306 3,4% 71
Sonstige betriebliche Erträge t€ 21.569 23.830 -9,5% 37.972
Betriebsleistung t€ 33.262 35.136 -5,3% 38.043
Operatives Ergebnis (Betriebserfolg) t€ -6.338 -12.774 -50,4% -9.067
Operative Marge ¹ % -19,1% -36,4% 23,8%
Beteiligungserträge t€ 61.177 61.915 -1,2% 53.745
Finanzerfolg t€ 65.842 64.055 2,8% 61.948
Ergebnis der gewöhnlichen
Geschäftstätigkeit t€ 59.503 51.281 16,0% 52.881
Jahresüberschuss t€ 59.854 52.376 14,3% 53.411
I nvestitionen in Sachanlagen und t€
immaterielle Vermögenswerte t€ 678 816 -16,9% 3.131
I nvestitionen in Finanzanlagen t€ 0 16.000 x 0

¹ Operative Marge = Operatives Ergebnis / Betriebsleistung

Umsatzerlöse

Die Veränderung der Umsatzerlöse resultiert aus höheren Umsätze in den Divisionen im Vergleich zum Vorjahr, wodurch höhere Royalties verrechnet werden konnten.

In den sonstigen betrieblichen Erträgen sind die weiterverrechneten Konzernkosten mit einem Anteil von rd. 98% (Vorjahr: 99%) an der Gesamtsumme enthalten, welche vorwiegend aufgrund geringerer für den Konzern notwendiger Investitionen um rd. TEUR 2.599 zurückgegangen sind.

Ertragslage

Das Ergebnis der gewöhnlichen Geschäftstätigkeit als auch der Jahresüberschuss der Gesellschaft haben sich gegenüber dem Vorjahr wesentlich positiv verändert, da im Vergleich zum Vorjahr geringere Ausgaben für Rechts- und Beratungsleistungen bzw. für IT-Beratung angefallen sind und aufgrund von Änderungen in der Personalstruktur geringere Ausgaben für Vorsorgezahlungen getätigt werden mussten.

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Vermögens- und Finanzlage

Veränderung
Bilanzkennzahlen 2015/ 16 2014/ 15 in % 2013/ 14
Bilanzsumme t€ 771.441 780.491 -1,2% 761.858
Grundkapital t€ 103.210 103.210 0,0% 103.210
I mmaterielle Vermögensgegenstände
und Sachanlagen
t€
t€
2.172 3.043 -28,6% 4.158
Anteile an verbundenen Unternehmen t€ 417.025 417.025 0,0% 422.485
Andere Finanzanlagen t€ 126.259 211.259 -40,2% 195.456
Eigenkapital t€ 604.692 595.965 1,5% 594.716
Eigenkapitalquote ¹ % 78,4% 76,4% 2,7% 78,1%
Haftungsverhältnisse t€ 206.095 172.869 19,2% 272.361

¹ Eig enkapitalquote = Eig enkapital / Gesamtkapital

Die Immateriellen Vermögensgegenstände und Sachanlagen reduzierten sich im Vergleich zum Vorjahr um -871 t€. Grund ist im Vergleich zu den Vorjahren höhere Abschreibungen aufgrund der im Vorjahr getätigten Investitionen für die Geschäftsausstattung des Mietgebäudes.

Die Veränderung der anderen Finanzanlagen ist auf die Einlösung des Partizipationskapitals in Höhe von t€ 85.000 zurückzuführen.

Die Eigenkapitalquote von 78,4 % (Vorjahr: 76,4 %) zeigt eine solide Eigenkapitalausstattung und Bilanzstruktur der Gesellschaft.

Cashflow

Veränderung
2015/ 16 2014/ 15 in % 2013/ 14
Cashflow aus laufender
Geschäftstätigkeit t€ 60.576 67.125 -9,8% 55.578
Cashflow aus I nvestitionstätigkeit t€ 84.378 -16.524 -610,6% -3.107
Cashflow aus Finanzierungstätigkeit t€ -51.127 -35.127 45,5% -51.182
Veränderung der flüssigen Mittel t€ 93.827 15.473 506,4% -1.931
Bestand an flüssigen Mittel¹ t€ 109.430 15.603 601,3% 130

2015/16: t€ 109.406; 2014/15: t € 15.515 ¹ einschließlich Forderungen gegenüber dem Konzern-Cash-Pooling mit AGRANA Group-S ervices GmbH

Der Cashflow aus der laufenden Geschäftstätigkeit sank im Geschäftsjahr 2015|16 um 6.549 t€ auf 60.576 t€ (Vorjahr: 67.125 t€). Der Rückgang ist auf die Forderungen gegenüber dem Konzern-Cash-Pooling sowie der Steuerrückstellung zurückzuführen.

Der Cash-Flow aus der Investitionstätigkeit stieg von -16.524 t€ im Vorjahr auf 84.378 t€ an und resultiert im Wesentlichen aus der Rückzahlung des Partizipationskapitals an der Raiffeisen-Holding Niederösterreich-Wien registrierte Genossenschaft mit beschränkter Haftung.

Der Cash-Flow aus der Finanzierungstätigkeit resultiert aus der Dividendenauszahlung von rd. 51.127 t€. Im Geschäftsjahr 2014|15 setzte sich dieser aus der Dividendenzahlung sowie der Neuaufnahme von Teilverbindlichkeiten zum Schuldscheindarlehen in Höhe von 16.000 t€ zusammen.

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147

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UMWELT UND NACHHALTIGKEIT

AGRANAs Nachhaltigkeitsverständnis

AGRANA, als industrieller Veredler agrarischer Rohstoffe, versteht im Rahmen ihrer Geschäftstätigkeit unter Nachhaltigkeit die Balance zwischen Ökonomie, Ökologie und Sozialem. Dieses Verständnis von Nachhaltigkeit ist im Rahmen von drei Leitsätzen, die Management und allen Mitarbeitern als praktische und leicht verständliche Anleitung zu täglich nachhaltigem Handeln dienen, zusammengefasst:

Wir bei AGRANA…

  • verwerten annähernd 100 % der eingesetzten Rohstoffe und nutzen emissionsarme Technologien zum Schutz der Umwelt;
  • achten alle unsere Stakeholder und die Gesellschaften, in denen wir tätig sind;
  • leben langfristige Partnerschaften.

AGRANA Nachhaltigkeitsaktivitäten im Geschäftsjahr 2015|16 und Ziele

Ihre Aktivitäten im Bereich Nachhaltigkeit sind in folgende Handlungsfelder entlang der Wertschöpfungskette gegliedert:

  • Umwelt- und Sozialkriterien in der Beschaffung agrarischer Rohstoffe und Vorprodukte
  • Umwelt- und Energieaspekte in der AGRANA-Produktion
  • Arbeitsbedingungen und Menschenrechte in Bezug auf AGRANA-Mitarbeiter
  • Produktverantwortung und nachhaltige Produkte
  • Gesetzes- und Regelkonformität sowie Geschäftsgebarung
  • Gesellschaftliches Engagement

Darüber hinaus ist besonders der Beitritt zur Sustainable Agriculture Initiative im Juli 2014 hervorzuheben. Die Sustainable Agriculture Initiative (SAI) ist eine von Nestlé, Unilever und Danone im Jahr 2002 gegründeten Initiative der Lebensmittel- und Getränkeindustrie. SAI hat es sich zum Ziel gesetzt als Informationsplattform durch die Vorstellung von Best-Practices und Unterstützung durch das Angebot unterschiedlicher Tools die Entwicklung und Implementierung nachhaltiger Agrarpraxis weltweit zu fördern. Mittelfristig sollen Benchmarks für wesentliche Nachhaltigkeitsaspekte in der agrarischen Produktion z.B. Wassermanagement, Biodiversität etc. im Rahmen von rohstoffspezifischen Arbeitsgruppen, an denen die Mitgliedsunternehmen teilnehmen können, entwickelt werden. Im Geschäftsjahr 2015/2016 wurden die ersten Assessments zur Erhebung einzelner Benchmarks durchgeführt, wo seitens AGRANA ein beachtlicher Beitrag geleistet wurde.

Erstmalig wurden nicht nur ökologische sondern auch Aspekte der ökonomischen Nachhaltigkeit in den Fokus gestellt. In Zusammenarbeit mit "Economica Instiut für Wirtschaftsforschung" wurde erfasst, welche Bruttowertschöpfungs- und Beschäftigungseffekte die Gesamtleistung der drei Segmente in 25 Ländern erzielt haben. Somit konnte festgestellt werden, dass AGRANA einen Gesamteffekt von 0,002% am weltweiten Bruttoinlandsprodukt bewirkt.

FORSCHUNG UND ENTWICKLUNG

In einem hochkompetitiven Marktumfeld ist es für AGRANA von zentraler Bedeutung, Markttrends zu setzen und sich durch Produktinnovationen von den Mitbewerbern zu unterscheiden. In enger Partnerschaft mit ihren Kunden arbeitet AGRANAs Forschung und Entwicklung (F&E) laufend an neuen Rezepturen, Spezialprodukten und innovativen Anwendungsmöglichkeiten bestehender Produkte und unterstreicht somit ihre auf nachhaltigen Erfolg ausgelegte Unternehmensstrategie.

Das AGRANA Research & Innovation Center GmbH (ARIC) in Tulln|Österreich ist das zentrale Forschungs- und Entwicklungsinstitut des Konzerns für die Bereiche Stärke, Bioethanol, Zucker und Frucht. Das ARIC ist als eigenständiges Unternehmen in der AGRANA-Gruppe organisiert und eine 100%-Tochter der AGRANA Beteiligungs-AG. Ziel der Einrichtung ist es, neue Anwendungsfelder für innovative Produkte aus den Rohstoffen Kartoffel, Mais, Wachsmais, Weizen und Zuckerrübe zu erschließen. Das Unternehmen ist national und international als F&E-Dienstleister und - Serviceanbieter in den Bereichen Zuckertechnologie, Lebensmitteltechnologie, Stärke- und Bioethanoltechnologie, Mikrobiologie, Biotechnologie und Frucht tätig. Weiters bietet die Forschungsstätte ihr spezielles F&E-Know-how auch Dritten an und fungiert als staatlich akkreditiertes Labor für Bioethanol-Analytik und die Qualitätsüberprüfung von Zuckerrüben.

Die Zusammenführung und das Zusammenarbeiten von F&E-Spezialisten aus unterschiedlichen Bereichen (Zucker, Stärke und Frucht) unter einem Dach ermöglichen nicht nur verwaltungstechnische Synergieeffekte, sondern fördern auch den Austausch unterschiedlicher Forschergruppen. Durch die sich ergänzenden Erfahrungen ergeben sich Vorteile bei segmentübergreifenden Forschungsschwerpunkten wie z.B. Ernährungsphysiologie, Verdicker und Aromen, Mikrobiologie, Produktqualität und -sicherheit sowie Bio-Produkte. Die zunehmende Anzahl an Projekten, die mehrere AGRANA-Geschäftssegmente gleichzeitig betreffen, kann somit wesentlich einfacher und effizienter umgesetzt werden.

F&E-Kennzahlen 2015 16 2014 15 2013 14
F&E-Aufwendungen (intern und extern) (in Mio. €) 14,9 14,5 17,2
F&E-Quote1 (in %) 0,60 0,58 0,61
Mitarbeiter in F&E (Köpfe) 214 216 218

1 F&E-Aufwendungen gemessen am Konzernumsatz

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149

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PERSONAL- UND SOZIALBERICHT

Die gesamte AGRANA-Gruppe beschäftigte im Geschäftsjahr 2014|15 durchschnittlich 8.611 (Vorjahr: 8.708) Mitarbeiter, davon 2.120 (Vorjahr: 2.138) in Österreich und 6.491 (Vorjahr: 6.570) international. Die geringe Veränderung im Konzern begründet sich vor allem mit Zuwächsen im Segment Stärke und Frucht und einen notwendigen Abbau durch Effizienzsteigerungen im Segment Zucker.

Ein konzernweit implementiertes "Performance-Management" wird in Verbindung mit einem erfolgsabhängigen Entlohnungssystem für das Management weltweit eingesetzt, um die strategischen und operativen Ziele des Unternehmens zu erreichen. Die Kriterien für die variable Vergütung umfassen neben den Finanz- und Ertragszielen auch individuelle Zielvereinbarungen. Im Geschäftsjahr 2015|16 nahmen 7,9 % (Vorjahr: 7,3 %) aller Beschäftigten an diesem erfolgsorientierten Entlohnungssystem teil.

Ein besonderer Fokus wurde im letzten Geschäftsjahr auf die Entwicklung von internen Schulungen und Trainingsprogrammen (Sharepoint-Training, Compliance-Schulungen und Trainings im Bereich Logistik) gelegt. Dies ermöglichte eine gezielte Weitergabe von Knowhow innerhalb des Unternehmens (Wissensmanagement) und führte gleichzeitig zu einer Verringerung der externen Trainingskosten.

Ein wichtiger Bestandteil der konzernweiten Aus- und Weiterbildung ist die AGRANA Academy. Bei dieser Initiative werden Führungskräfte in den Bereichen Strategie und Führung geschult. Ein Hauptaugenmerk stellen der segmentübergreifende Austausch von Ideen und Best-Practices sowie das Aufzeigen von Markttrends dar. Die Academy soll Führungskräfte noch besser für künftige Herausforderungen wappnen. Darüber hinaus wurden zur Unterstützung der Verkaufsaktivitäten Vertriebstrainings durch eine neu konzipierte Sales Academy implementiert. Nachdem es AGRANA als Unternehmen wichtig ist, ihre Mitarbeiter stetig weiter zu entwickeln, startet im Geschäftsjahr 2016|17 ein neues Entwicklungsprogramm, welches speziell auf langjährige Mitarbeiter in einer Expertenfunktion abzielt. Das Programm wird bei seinem erstmaligen Roll-Out für die Bereiche Finanzen, Produktion, Einkauf sowie den Qualitätsbereich angeboten. Durch den fachspezifischen Kontext wird den Mitarbeitern neues Wissen aus dem eigenen Fachbereich sowie ein Austausch mit Kollegen aus demselben Fachbereich, ermöglicht.

Im Geschäftsjahr 2015|16 waren durchschnittlich 68 Lehrlinge in Österreich und Deutschland, u.a. in den Bereichen Maschinenbautechnik, Metalltechnik, Lebensmitteltechnik und Informationstechnologie, beschäftigt. Der Anteil weiblicher Lehrlinge lag bei rund 10 %.

Die konzernweiten externen Aus- und Weiterbildungskosten beliefen sich im Geschäftsjahr 2015|16 auf rund 1,7 (Vorjahr: 2,0) Mio. €, das entspricht rund 0,8 % (Vorjahr: 0,9 %) der Lohnund Gehaltssumme.

Arbeitsbedingungen und Menschenrechte

Im Bereich Arbeitsbedingungen und Menschenrechte hat AGRANA das im Vorjahr gesteckte Ziel, an allen Standorten weltweit, wo kein Betriebsrat, der diese Funktion erfüllt, existiert, eine formale Beschwerdestelle bezüglich Arbeitspraktiken und Menschenrechten für alle Mitarbeiter einzurichten, im Geschäftsjahr 2015|16 umgesetzt. Daneben wurde ein Prozess festgelegt, der die zeitnahe und faire Bearbeitung der Beschwerden sicherstellt.

Arbeitssicherheit und Gesundheit

Im Geschäftsjahr 2013|14 wurden erstmals Kennzahlen zur Verletzungsrate, Ausfalltagequote und Abwesenheitsrate pro Segment weltweit erhoben. Die Verletzungsrate als auch die Ausfallstageqote konnten gesamt (Männer und Frauen) im Vergleich zum Vorjahr nicht unwesentlich gesenkt werden.

Work-Life Balance

Maßnahmen zur Vereinbarkeit von Beruf und Familie haben traditionell einen sehr hohen Stellenwert. Im Frühjahr 2016 trat AGRANA dem österreichischen Netzwerk "Unternehmen für Familien" bei. Das Netzwerk wurde vom Bundesministerium für Familien und Jugend ins Leben gerufen, um Unternehmen und Gemeinden, die sich für eine familienbewusste Personal- und Gemeindepolitik interessieren und/oder auch schon dafür engagieren zu vernetzen. Die Plattform des Netzwerkes sowie zugehörige Veranstaltungen dienen als Ort des Austausches, der Inspiration sowie der Information. Im Rahmen ihres Beitrittes hat AGRANA die Umsetzung einer Reihe weiterer Maßnahmen zur besseren Vereinbarkeit von Beruf und Familie im Geschäftsjahr 2016|17 beschlossen.

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RISIKOMANAGEMENT UND INTERNES KONTROLLSYSTEM

Die AGRANA-Gruppe bedient sich integrierter Kontroll- und Berichtssysteme, die eine regelmäßige, konzernweite Einschätzung der Risikosituation ermöglichen. Im Rahmen der Früherkennung und Überwachung von konzernrelevanten Risiken wurden zwei einander ergänzende Steuerungsinstrumente implementiert:

Die Unternehmensgruppe ist Risiken ausgesetzt, die sich sowohl aus dem operativen Geschäft als auch von nationalen und internationalen Rahmenbedingungen ableiten. Im Zuge der Geschäftstätigkeit als weltweit tätiger Veredler agrarischer Rohstoffe stellen klimatische Veränderungen und deren Auswirkungen auf die Verfügbarkeit der Rohmaterialien Risiken für AGRANA dar. Daneben ist AGRANA aufgrund der v.a. in den Geschäftssegmenten Zucker und Stärke energieintensiven Produktion Risiken durch die Energie- und Umweltgesetzgebungen in den verschiedenen Ländern ausgesetzt.

Ein konzernweites, operatives Planungs- und Berichtssystem bildet die Basis für die monatliche Berichterstattung an die zuständigen Entscheidungsträger. Im Rahmen dieses Reporting-Prozesses wird für die Gruppe und für jedes Segment ein separater Risikobericht erstellt. Der Fokus liegt dabei auf der Ermittlung von Sensitivitäten in Bezug auf sich verändernden Marktpreisen für das gegenwärtige und folgende Geschäftsjahr.

Zu den operativen Risiken zählen die

  • Beschaffungsrisiken
  • Produktqualität und –sicherheit
  • Markt- und Wettbewerbsrisiken

Das strategische Risikomanagement verfolgt die Zielsetzung, wesentliche Einzelrisiken hinsichtlich ihrer Auswirkungen auf das Chancen- und Risikopotenzial zu identifizieren und zu bewerten. Zweimal jährlich werden die mittel- bis langfristigen Risiken in den einzelnen Geschäftsbereichen durch ein definiertes Risikomanagement-Team in Kooperation mit dem zentralen Risikomanagement analysiert. Der Prozess beinhaltet die Risikoidentifikation und deren Bewertung nach Eintrittswahrscheinlichkeit und möglichem Risiko-/Chancenpotenzial, die Definition von Frühwarnindikatoren sowie Maßnahmen zur Gegensteuerung.

Für die Segmente der AGRANA-Gruppe wurden Risikomanagement-Verantwortliche definiert, die in Abstimmung mit dem Vorstand im Bedarfsfall Maßnahmen zur Schadensminimierung einleiten sollen.

Darüber hinaus beschäftigt sich das konzernweite Riskmanagement mit

Ungewissheiten

Zunehmend gewinnt auch die Einhaltung nachhaltiger Umwelt- und Sozialkriterien in der vorgelagerten Lieferkette an Bedeutung. Diese versucht AGRANA durch die Einhaltung definierter Kriterien zur Beschaffung agrarischer Rohstoffe und Vorprodukte zu gewährleisten. Daneben ist AGRANA aufgrund der v.a. in den Geschäftssegmenten Zucker und Stärke energieintensiven Produktion Risiken durch die Energie- und Umweltgesetzgebungen in den verschiedenen Ländern ausgesetzt. In diesem Bereich hat AGRANA eine Umweltpolitik formuliert, deren Einhaltung Risiken vermeiden bzw. minimieren soll.

  • Regulatorischen Risiken (zB Zuckermarktordnung) Mit 30. September 2017 entfallen die Rübenmindestpreis- und die Quotenregelung für Zucker und Isoglukose.
  • Freihandelsabkommen
  • EU-Richtlinie für erneuerbare Energien (2009/28/EG)

Mindestbeimischung von Bioethanol zu Benzin, deren Höhe eine starke Auswirkung auf den Geschäftsbereich Bioethanol hat.

Rechtliche Risiken

Derzeit bestehen keine gerichtsanhängigen oder angedrohten zivilrechtlichen Klagen gegen Unternehmen der AGRANA-Gruppe, die eine nachhaltige Auswirkung auf die Ertrags-, Finanz- und Vermögenslage haben könnten.

Die Finanziellen Risiken werden vor allem in vier für den Konzern wesentlichen Bereiche gegliedert:

Zinsänderungsrisiken

Zinsänderungsrisiken ergeben sich durch Wertschwankungen von fix verzinsten Finanzinstrumenten infolge einer Änderung des Marktzinssatzes (zinsbedingtes Kursrisiko). Variabel verzinsliche Anlagen oder Kreditaufnahmen unterliegen dagegen keinem Wertrisiko, da der Zinssatz zeitnah der Marktzinslage angepasst wird. Durch die Schwankung des Marktzinsniveaus ergibt sich aber ein Risiko hinsichtlich der künftigen Zinszahlungen (zinsbedingtes Zahlungsstromrisiko). Dabei versucht AGRANA Zinssicherungsinstrumente dem Finanzierungsbedarf und der Fristigkeit entsprechend einzusetzen. Im Rahmen der Umsetzung des IFRS 7 werden die bestehenden Zinsrisiken durch Berechnung des "Cash Flow at Risk" bzw. der "Modified Duration" ermittelt und im Konzernanhang detailliert dargestellt.

Währungsrisiken

Währungsrisiken können einerseits aus dem Erwerb und Verkauf von Waren in Fremdwährungen sowie andererseits aufgrund von Finanzierungen in Fremdwährungen bzw. lokalen Euro-Finanzierungen entstehen. Für AGRANA sind v.a. die Kursrelationen von Euro zu US-Dollar, ungarischem Forint, polnischem Zloty, rumänischem Leu, ukrainischer Griwna, russischem Rubel, brasilianischem Real, mexikanischem Peso und chinesischem Yuan von Relevanz. Darüber hinaus beeinflussen Veränderungen der Währungskurse im Vergleich zum Euro das Konzernergebnis der AGRANA-Gruppe.

Als Sicherungsinstrument setzt AGRANA vorrangig Devisentermingeschäfte ein, mit denen die in Fremdwährung anfallenden Zahlungsströme gegen Kursschwankungen abgesichert werden. In Ländern mit volatilen Währungen werden diese Risiken zusätzlich durch eine Verkürzung von Zahlungsfristen, eine Indizierung der Verkaufspreise zum Euro oder US-Dollar und analoge Sicherungsmechanismen weiter reduziert.

Liquiditätsrisiken

Liquiditätsrisiken auf Einzelgesellschafts- oder Länderebene werden durch das einheitliche Berichtswesen frühzeitig erkannt, wodurch eventuelle Gegenmaßnahmen rechtzeitig eingeleitet werden können. Die Liquidität der AGRANA-Gruppe ist, durch bilaterale und syndizierte Kreditlinien, langfristig und ausreichend abgesichert.

Risiken aus Forderungsausfällen

Risiken aus Forderungsausfällen werden durch die bestehenden Warenkreditversicherungen, durch strikte Kreditlimits und laufende Überprüfungen der Kundenbonität minimiert. Das verbleibende Risiko wird durch Vorsorgen in angemessener Höhe abgedeckt.

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Risiken aus Unregelmäßigkeiten

Im Zuge der Jahresabschlussprüfung 2011|12 der AGRANA Fruit México, S.A. de C.V., Michoacán|Mexiko, traten Verdachtsmomente auf, dass verschiedene Geschäftsvorfälle nicht im Einklang mit dem AGRANA-Verhaltenskodex standen und deren finanzieller Ausweis nicht den geltenden externen und internen Bilanzierungsvorschriften entsprach. Nach intensiven Erhebungen wurden Anfang Juni 2012 das lokale Management ausgetauscht, der Fall bearbeitet und im Jahresabschluss 2012|13 entsprechende finanzielle Vorsorgen getroffen.

In den Geschäftsjahren seit 2013|14 ergaben sich keine wesentlichen, neuen Erkenntnisse zu diesem Betrugsfall und die im Geschäftsjahr 2012|13 erfolgten internen und externen Ermittlungen erwiesen sich als umfassend. Die strafrechtlichen Verfahren gegen das frühere Management werden seitens der mexikanischen Staatsanwaltschaft geführt. Mit der Vertrauensschadenversicherung wurde eine außergerichtliche Einigung erzielt.

Interne und externe Prüfungen sollen bestmöglich sicherstellen, dass ähnliche Vorfälle verhindert bzw. frühzeitig erkannt werden.

Gesamtrisiko

Die derzeitige Gesamtrisikoposition des Konzerns ist durch anhaltend hohe Volatilitäten von Verkaufs- und Rohstoffpreisen gekennzeichnet und entspricht in Summe dem Niveau des Vorjahres. Es sind gegenwärtig keine bestandsgefährdenden Risiken für die AGRANA-Gruppe erkennbar.

BERICHTERSTATTUNG GEMÄß § 243A ABS. 2 UGB

Der Vorstand der AGRANA ist sich der Verantwortung zur Einrichtung und Ausgestaltung eines internen Kontrollsystems (IKS) und Risikomanagementsystems (RMS) im Hinblick auf den Rechnungslegungsprozess sowie die Einhaltung der maßgeblichen gesetzlichen Vorschriften bewusst.

Konzernweit geltende Bilanzierungs- und Bewertungsrichtlinien, das interne Kontrollsystem (IKS) sowie die Vorschriften zur Rechnungslegung nach den International Financial Reporting Standards (IFRS) sichern sowohl Einheitlichkeit der Rechnungslegung als auch die Verlässlichkeit der Finanzberichterstattung und der extern publizierten Abschlüsse.

Der überwiegende Anteil der Konzerngesellschaften verwendet SAP als führendes ERP-System. Die Werte der Einzelabschlüsse werden in das zentrale SAP-Konsolidierungsmodul übernommen. Es kann somit sichergestellt werden, dass das Berichtswesen auf einer einheitlichen Datenbasis erfolgt. Die Erstellung des Konzernabschlusses erfolgt durch das Konzernrechnungswesen. Es zeichnet für die Betreuung der Meldedatenübernahme der lokalen Gesellschaften, die Durchführung der Konsolidierungsmaßnahmen, die analytische Aufbereitung und Erstellung von Finanzberichten verantwortlich. Die Kontrolle und Abstimmung des internen und externen Berichtswesens werden monatlich durch das Controlling und Konzernrechnungswesen durchgeführt.

Das wesentliche Steuerungsinstrument für das Management von AGRANA ist das konzernweit implementierte einheitliche Planungs- und Berichtssystem. Es umfasst eine Mittelfristplanung mit einem Planungshorizont von fünf Jahren, eine Budgetplanung (für das folgende Geschäftsjahr), Monatsberichte inklusive eines eigenen Risikoberichtes sowie dreimal jährlich eine Vorschaurechnung des laufenden Geschäftsjahres, in dem die wesentlichen wirtschaftlichen Entwicklungen berücksichtigt werden. Im Falle von gravierenden Änderungen der Planungsprämissen wird dieses System durch Ad-hoc-Planungen ergänzt.

Die vom Controlling erstellte monatliche Finanzberichterstattung zeigt die Entwicklung aller Konzerngesellschaften. Der Inhalt dieses Berichtes ist konzernweit vereinheitlicht und umfasst neben detaillierten Verkaufsdaten, Bilanz, Gewinn- und Verlustrechnung die daraus ableitbaren Kennzahlen und auch eine Analyse der wesentlichen Abweichungen. Teil dieses Monatsberichtes ist auch ein eigener Risikobericht, sowohl für jedes Segment als auch für die AGRANA-Gruppe, indem unter der Annahme des Einfrierens der wesentlichen Ergebnisfaktoren (wie z.B. Energie-, Rohstoff-, Verkaufspreise etc.) auf dem aktuellen Niveau bis Geschäftsjahresende ein Risikopotenzial für das laufende und das nachfolgende Geschäftsjahr errechnet wird.

Ein konzernweites Risikomanagementsystem, sowohl auf operativer als auch strategischer Ebene, in dessen Rahmen alle für das Unternehmen relevanten Risikofelder wie regulatorische und rechtliche Rahmenbedingungen, Rohstoffbeschaffung, Wettbewerbs- und Marktrisiken und Finanzierung auf Chancen und Risiken analysiert werden, ermöglicht es dem Management, frühzeitig Veränderungen im Unternehmensumfeld zu erkennen und rechtzeitig Gegenmaßnahmen einzuleiten.

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155

• • • •

Die Interne Revision überwacht sämtliche Betriebs- und Geschäftsabläufe in der Gruppe im Hinblick auf die Einhaltung gesetzlicher Bestimmungen und interner Richtlinien sowie auf Wirksamkeit des Risikomanagements und der internen Kontrollsysteme. Grundlage der Prüfungshandlungen ist ein vom Vorstand beschlossener jährlicher Revisionsplan auf Basis einer konzernweiten Risikobewertung. Auf Veranlassung des Managements werden Ad-hoc-Prüfungen durchgeführt, die auf aktuelle und zukünftige Risiken abzielen. Die Ergebnisse der Prüfungshandlungen werden regelmäßig an den AGRANA-Vorstand und an das verantwortliche Management berichtet. Die Umsetzung der von der Revision vorgeschlagenen Maßnahmen wird durch Folgekontrollen überprüft. AGRANA Beteiligungs-Aktiengesellschaft Lagebericht 2015/16 Beilage II/21

Im Rahmen der Abschlussprüfung beurteilt der Wirtschaftsprüfer jährlich, soweit es für sein Prüfungsurteil erforderlich ist, das interne Kontrollsystem des Rechnungslegungsprozesses und der IT-Systeme. Die Ergebnisse der Prüfungshandlungen werden dem Prüfungsausschuss im Aufsichtsrat berichtet.

KAPITAL-, ANTEILS-, STIMM- UND KONTROLLRECHTE (Angaben gemäß § 243a Abs. 1 UGB)

Das Grundkapital der AGRANA Beteiligungs-AG zum Stichtag 29. Februar 2016 beträgt 103,2 Mio. € und ist in 14.202.040 auf Inhaber lautende Stückaktien (Stammaktien mit Stimmrecht) geteilt. Weitere Aktiengattungen bestehen nicht.

Die Z&S Zucker und Stärke Holding AG (Z&S) mit Sitz in Wien hält als Mehrheitsaktionär direkt 86,2 % des Grundkapitals der AGRANA Beteiligungs-AG. Die Z&S ist eine 100 %- Tochter der AGRANA Zucker, Stärke und Frucht Holding AG, Wien, an welcher die Zucker-Beteiligungsgesellschaft m.b.H. (ZBG), Wien, mit 50 % abzüglich einer Aktie, die von der AGRANA Zucker GmbH, einer Tochter der AGRANA Beteiligungs-AG, gehalten wird, sowie die Südzucker AG (Südzucker), Mannheim|Deutschland, mit 50% beteiligt sind. An der ZBG halten die "ALMARA" Holding GmbH, eine Tochtergesellschaft der Raiffeisen-Holding Niederösterreich Wien registrierte Genossenschaft mit beschränkter Haftung, die Marchfelder Zuckerfabriken Gesellschaft m.b.H., die Estezet Beteiligungsgesellschaft m.b.H., die Rübenproduzenten Beteiligungs GesmbH und die Leipnik-Lundenburger Invest Beteiligungs AG, jeweils Wien, Beteiligungen. Aufgrund eines zwischen der Südzucker und der ZBG abgeschlossenen Syndikatsvertrages sind die Stimmrechte der Syndikatspartner in der Z&S gebündelt und es bestehen u.a. Übertragungsbeschränkungen der Aktien und bestimmte Nominierungsrechte der Syndikatspartner für die Organe der AGRANA Beteiligungs-AG und der Südzucker. So ist Dipl.-Ing. Johann Marihart von der ZBG als Vorstandsmitglieds der Südzucker AG und Dkfm. Thomas Kölbl seitens Südzucker als Vorstandsmitglied der AGRANA Beteiligungs-AG nominiert und bestellt.

M&G Investmentfonds des britischen Finanzunternehmens Prudential plc, London|Großbritannien, hielten bis 27. Februar 2014 15,6 % am AGRANA-Grundkapital. Die Z&S, die als Mehrheitsaktionärin der AGRANA Beteiligungs-AG bis zu diesem Zeitpunkt 75,5 % des Grundkapitals hielt, übernahm von M&G Investmentfonds einen Anteil in Höhe von 10,7 % unmittelbar, wodurch die Z&S seit dieser Transaktion 86,2 % der Stimmrechte an AGRANA hält. Weitere 4,9 % an AGRANA-Aktien wurden damals unmittelbar von Südzucker erworben, die dadurch ihren direkten Anteil an der AGRANA Beteiligungs-AG auf rund 6,5 % aufstockte. Davon sollen knapp 5 % wieder platziert werden, um den Streubesitz der AGRANA Beteiligungs-AG zu erhöhen. Ziel ist es, die Liquidität der AGRANA-Aktie zu erhöhen und so die Attraktivität für Investoren zu verbessern. Auf die nicht platzierten Aktien hat die Z&S eine seit dem 1. März 2015 ausübbare Call-Option gegenüber Südzucker.

Es gibt keine Inhaber von Aktien, die über besondere Kontrollrechte verfügen. Mitarbeiter, die auch Aktionäre der AGRANA Beteiligungs-AG sind, üben ihre Stimmrechte individuell aus.

Der Vorstand verfügt über keine über die unmittelbaren gesetzlichen Regelungen hinausgehenden Befugnisse, Aktien auszugeben oder zurückzukaufen.

In den Verträgen betreffend Schuldscheindarlehen und Kreditlinien ("Syndicated Loans") sind "Change of Control"-Klauseln enthalten, die den Darlehensgebern ein außerordentliches Kündigungsrecht einräumen.

Darüber hinaus bestehen keine bedeutenden Vereinbarungen, die bei einem Kontrollwechsel infolge eines Übernahmeangebotes wirksam werden, sich wesentlich ändern oder enden. Entschädigungsvereinbarungen zwischen der Gesellschaft und ihren Organen oder Arbeitnehmern im Falle eines öffentlichen Übernahmeangebotes bestehen nicht.

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CORPORATE GOVERNANCE-BERICHT

AGRANA bekennt sich zu den Regelungen des Österreichischen Corporate Governance Kodex (ÖCGK) und hält nahezu alle Bestimmungen ein. Der ÖCGK ist auf der Website des Österreichischen Arbeitskreises für Corporate Governance unter www.corporategovernance.at abrufbar. Er bildet - auf dem Prinzip der freiwilligen Selbstverpflichtung beruhend - den Ordnungsrahmen für die Leitung und Überwachung des Unternehmens mit dem Ziel einer hohen Transparenz für alle Stakeholder.

Im Geschäftsjahr 2015|16 hat AGRANA den ÖCGK in der Fassung vom Jänner 2015 zur Anwendung gebracht. Der Aufsichtsrat der AGRANA Beteiligungs-AG hat sich in seinen Sitzungen am 30. November 2015 und 25. Februar 2016 mit Fragen der Corporate Governance befasst und einstimmig die Erklärung über die Einhaltung des Kodex beschlossen.

ZWEIGNIEDERLASSUNGEN

Die AGRANA Beteiligungs-Aktiengesellschaft hatte in 2015/16 keine Zweigniederlassungen

EREIGNISSE NACH DEM BILANZSTICHTAG

Es sind nach dem Bilanzstichtag keine wesentlichen berichtspflichtigen Ereignisse eingetreten.

PROGNOSEBERICHT

Basierend auf einer soliden Bilanzstruktur zum 29. Februar 2016 und einem gut diversifizierten Geschäftsmodell, sieht sich AGRANA auch für das neue Geschäftsjahr gut gerüstet und rechnet mit einer moderat positiven Ergebnisentwicklung.

Aus heutiger Sicht geht AGRANA für das Geschäftsjahr 2016|17 sowohl beim Konzernumsatz als auch beim Ergebnis der Betriebstätigkeit (EBIT) von einem moderaten Anstieg aus.

Aus Sicht der Einzelgesellschaft, der AGRANA Beteiligungs-Aktiengesellschaft, wird daher für das kommende Geschäftsjahr 2016|17 ebenfalls mit einer stabilen Umsatzentwicklung und einem Ergebnis der Geschäftstätigkeit (EGT) auf aktuellen Niveau gerechnet.

Wien, am 25. April 2016

Der Vorstand

Dipl.-Ing. Johann Marihart e.h. Mag. Dipl.-Ing. Dr. Fritz Gattermayer e.h.

Mag. Stephan Büttner e.h. Dkfm. Thomas Kölbl e.h.

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• • • •

159

Parent company financial statements

for the year ended 29 February 2016

INHALTSVERZEICHNIS

Gewinn- und Verlustrechnung

Bilanz

Anhang zum Jahresabschluss Allgemeines Bilanzierungs- und Bewertungsmethoden Erläuterungen zur Bilanz Erläuterungen zur Gewinn- und Verlustrechnung Sonstige Angaben Aufwendungen für den Abschlussprüfer Organe und Arbeitnehmer

Entwicklung des Anlagevermögens

Parent company financial statements 160 Parent company income statement

¤000 2015 16 2014 15
1. Revenue 11,693 11,306
2. Other operating income 21,569 23,830
3. Staff costs (19,655) (23,922)
4. Depreciation, amortisation and impairment of
property, plant and equipment and intangible assets (1,504) (1,859)
5. Other operating expenses (18,442) (22,129)
6. Operating (loss) [subtotal of items 1 to 5] (6,339) (12,774)
7. Income from investments in subsidiaries
and other companies 61,177 61,915
Of which from subsidiaries: € 61,167 thousand (prior year: € 61,910 thousand)
8. Income from other non-current securities 5,989 5,215
9. Other interest and similar income 5,040 5,219
Of which from subsidiaries: € 5,040 thousand (prior year: € 5,187 thousand)
10. Income from valuation gains
on non-current financial assets 0 2
11. Expenses from non-current financial assets 0 (5,460)
Of which from impairment: € 0 (prior year: € 5,460 thousand)
Of which from subsidiaries: € 0 (prior year: € 5,460 thousand)
12. Interest and similar expense (6,364) (2,836)
13. Net financial items [subtotal of items 7 to 12] 65,842 64,055
14. Profit before tax [subtotal of items 1 to 13] 59,503 51,281
15. Income tax credit 351 1,095
16. Profit for the period 59,854 52,376
17. Profit brought forward from prior year 8,710 7,461
18. Net profit available for distribution 68,564 59,837

• • • • • • • • •

• • • •

161

Parent company balance sheet

at 29 February 2016

¤000 29 Feb
2016
28 Feb
2015
ASSETS
A. Non-current assets
I.
Intangible assets
605 900
II. Property, plant and equipment 1,567 2,143
III. Non-current financial assets 543,283 628,284
545,455 631,327
B. Current assets
I.
Receivables and other assets
225,881 149,076
II. Cash and bank balances 24 88
225,905 149,164
C. Prepaid expenses
I.
Other prepaid expenses
81 0
Total assets 771,441 780,491
EQUITY AND LIABILITIES
A. Equity
I.
Share capital
103,210 103,210
II. Share premium and other capital reserves 418,990 418,990
III. Retained earnings 13,928 13,928
IV. Net profit available for distribution 68,564 59,837
Of which brought forward from prior year: € 8,710 thousand
(prior year: € 7,461 thousand)
604,692 595,965
B. Provisions
I.
Provisions for retirement, termination and
long-service benefit obligations 5,655 5,056
II. Provisions for tax and other liabilities 17,213 35,548
22,868 40,604
C. Payables
I.
Borrowings
126,000 126,000
II. Other payables 17,881 17,922
143,881 143,922
Total equity and liabilities 771,441 780,491
Contingent liabilities 206,095 172,869

Notes to the parent company financial statements

for the year ended 29 February 2016

A. ALLGEMEINES

Die Erstellung des Jahresabschlusses erfolgte nach den Bestimmungen des Unternehmensgesetzbuches (§ 189 ff UGB) in der geltenden Fassung.

Die Gesellschaft ist als große Gesellschaft gemäß § 221 UGB einzustufen. Die Gliederungsvorschriften der §§ 224 und 231 Abs 2 UGB wurden eingehalten, wobei für den Ausweis des Anlagevermögens das Wahlrecht gemäß § 223 Abs 6 UGB zur Verbesserung der Klarheit der Darstellung in Anspruch genommen wurde. Die zusammengefassten Posten sind im Anhang aufgegliedert.

Die zahlenmäßige Darstellung erfolgt in EURO (EUR), jene der Vorjahresbeträge in tausend EURO (TEUR).

Für die Darstellung der Gewinn- und Verlustrechnung wurde das Gesamtkostenverfahren gewählt.

B. BILANZIERUNGS- UND BEWERTUNGSMETHODEN

1. Allgemeine Grundsätze

Der Jahresabschluss wurde unter Beachtung der Grundsätze ordnungsmäßiger Buchführung sowie unter Beachtung der Generalnorm, ein möglichst getreues Bild der Vermögens-, Finanz- und Ertragslage des Unternehmens zu vermitteln, aufgestellt.

Bei der Erstellung des Jahresabschlusses wurde der Grundsatz der Vollständigkeit eingehalten.

Bei der Bewertung der einzelnen Vermögensgegenstände und Schulden wurde der Grundsatz der Einzelbewertung beachtet und eine Fortführung des Unternehmens unterstellt.

Dem Vorsichtsprinzip wurde dadurch Rechnung getragen, dass nur die am Abschlussstichtag verwirklichten Gewinne ausgewiesen wurden. Alle erkennbaren Risiken und drohenden Verluste wurden berücksichtigt.

Der Jahresabschluss der Gesellschaft wird beim Firmenbuch des Handelsgerichtes Wien eingereicht.

Der Teil-Konzernabschluss der AGRANA Beteiligungs-Aktiengesellschaft, Wien, wird in den Konzernabschluss der Südzucker Aktiengesellschaft Mannheim, Deutschland, aufgenommen und dieser beim Handelsregister des Amtsgerichtes Mannheim hinterlegt. Der Konzernabschluss der AGRANA Beteiligungs-Aktiengesellschaft wird beim Handelsgericht Wien hinterlegt.

• • • • • • • • •

• • • •

163

2. Anlagevermögen

a. Immaterielle Vermögensgegenstände

Die immateriellen Vermögensgegenstände werden zu Anschaffungskosten bewertet, die um die planmäßigen Abschreibungen vermindert sind.

Die planmäßige Abschreibung wird linear vorgenommen.

Folgende Nutzungsdauer wird der planmäßigen Abschreibung zugrunde gelegt:

Jahre Prozent
Markenrechte 10 10
EDV-Software 3 33,33

Außerplanmäßige Abschreibungen auf einen zum Abschlussstichtag niedrigeren beizulegenden Wert werden vorgenommen, wenn die Wertminderungen voraussichtlich von Dauer sind.

b. Sachanlagevermögen

Das Sachanlagevermögen wird zu Anschaffungskosten bewertet, die um die planmäßigen Abschreibungen vermindert sind.

Die planmäßige Abschreibung wird linear vorgenommen.

Folgende Nutzungsdauern werden der planmäßigen Abschreibung zugrunde gelegt:

Jahre Prozent
Gebäude 40 - 50 2,5 - 2
Geschäftsausstattung 5-10 20 - 10
EDV-Ausstattung 3 33,33
Gebrauchte Geschäftsausstattung und EDV 1 - 5 100 - 20

Gemäß Strukturanpassungsgesetz 1996 ergibt sich eine steuerliche Abschreibungsdauer für Personenkraftfahrzeuge von 8 Jahren. Unternehmensrechtlich wird eine Nutzungsdauer von 5 Jahren zugrunde gelegt.

Außerplanmäßige Abschreibungen auf einen zum Abschlussstichtag niedrigeren beizulegenden Wert werden vorgenommen, wenn die Wertminderungen voraussichtlich von Dauer sind.

c. Finanzanlagen

Die Anteile an verbundenen Unternehmen und Beteiligungen werden zu Anschaffungskosten oder zu dem niedrigeren Wert, der ihnen gemäß § 204 (2) UGB beizulegen ist, bewertet.

Gemäß Strukturanpassungsgesetz 1996 werden Abschreibungen bzw. Verluste aus Beteiligungen steuerrechtlich auf 7 Jahre verteilt angesetzt. Unternehmensrechtlich wird dieser Aufwand im Entstehungsjahr zur Gänze geltend gemacht.

Die Ausleihungen werden zum Nennwert bewertet. Im Falle einer dauerhaften Wertminderung werden außerplanmäßige Abschreibungen auf den beizulegenden Zeitwert vorgenommen. Wenn die Gründe für die Abschreibungen nicht mehr bestehen, werden im Ausmaß der Werterhöhung bis zur Höhe der Anschaffungskosten Zuschreibungen vorgenommen.

Wertpapiere (Wertrechte) des Anlagevermögens werden zu den Anschaffungskosten bzw. niedrigeren Marktwerten am Bilanzstichtag bewertet.

Der Gesamtwert der unterlassenen Zuschreibung (gemäß § 208 Abs. 3 UGB) beläuft sich bei Wertpapieren auf EUR 0 (im Vorjahr 0 TEUR).

3. Umlaufvermögen

a. Forderungen und sonstige Vermögensgegenstände

Die Forderungen und sonstigen Vermögensgegenstände sind mit dem Nennwert angesetzt, soweit nicht im Fall erkennbarer Einzelrisken der niedrigere beizulegende Wert angesetzt wird.

b. Aktive Steuerabgrenzung

Der gemäß § 198 (10) UGB aktivierbare Betrag in der Höhe von TEUR 444 (im Vorjahr 729 TEUR) wurde in die Bilanz nicht aufgenommen.

• • • • • • • • •

• • • •

165

4. Rückstellungen

a. Rückstellungen für Abfertigungen

Die Rückstellungen für Abfertigungen wurden gemäß § 198 und 211 UGB nach finanzmathematischen Grundsätzen ermittelt. Dazu wurde ein Gutachten der Valida Consulting GmbH, Wien, eingeholt. Der Rückstellungsberechnung liegen ein Rechnungszinssatz von 1,80 % (im Vorjahr 2,00 %), Fluktuationsabschläge je nach Dienstangehörigkeit von 0-7,59 % (im Vorjahr 0-8,08 %) sowie Gehaltsanpassungen zugrunde.

b. Rückstellung für Pensionen

Die Pensionsverpflichtungen sind seit 2002 an eine Pensionskasse ausgegliedert. Es wurde der Gesamtbetrag der rückgestellten Pensionsansprüche an die Kasse übertragen.

Die zu entrichtenden Pensionsbeiträge werden auf Basis eines Rechnungszinssatzes von 3,5 % so bemessen, dass die vereinbarte Alterspension ausfinanziert ist, wenn die Anwartschaftsberechtigten das 65. (Vorjahr: 65.) Lebensjahr vollendet haben. Bei Auftreten von kapitalmäßigen Deckungslücken besteht eine Nachschusspflicht an die Pensionskassa. Die Rückstellung für die Nachschussverpflichtung wird unter den sonstigen Rückstellungen ausgewiesen.

c. Sonstige Rückstellungen

Die Rückstellungen für nicht verbrauchte Urlaube wurden in voller erforderlicher Höhe passiviert. Die Jubiläumsgelder wurden nach finanzmathematischen Grundsätzen ermittelt und der Rechnungszinssatz von 1,80 % (im Vorjahr 2,00 %) verwendet, wobei je nach Dienstangehörigkeit von 0-7,59 % (im Vorjahr 0-8,08 %) Fluktuationsabschlag in der Berechnung berücksichtigt wurden.

Die übrigen Rückstellungen berücksichtigen alle nach vernünftiger unternehmerischer Beurteilung erkennbaren Risiken und ungewissen Verpflichtungen.

5. Verbindlichkeiten

Die Verbindlichkeiten sind mit dem Rückzahlungsbetrag angesetzt. Fremdwährungsverbindlichkeiten sind mit dem höheren Devisenbriefkurs am Bilanzstichtag bewertet.

C. ERLÄUTERUNGEN ZUR BILANZ

(1) Anlagevermögen

Die Entwicklung der einzelnen Posten des Anlagevermögens ist im Anlagespiegel (Anlage 1) dargestellt.

Der Anteilsbesitz gemäß § 238 Z 2 UGB (mindestens 20 % Kapitalanteil) stellt sich wie folgt dar:

Höhe
des
Eigenkapital gem. Geschäfts- Jahresüber
Beteiligungsunternehmen Anteils § 229 UGB jahr schuss/fehlbetrag
% EUR EUR
Anteile an verbundenen Unternehmen:
AGRANA Marketing- und
Vertriebsservice Ges.m.b.H, Wien 100 8.120.339,28 2015/16 676.543,56
AGRANA Int.Verw.u.Asset Managem.
GmbH, Wien*)
98,91 231.713.173,46 2015/16 -23.921.708,80
AGRANA Zucker GmbH., Wien *) 98,91 304.221.638,30 2015/16 4.838.159,44
AGRANA Stärke GmbH., Wien *) 98,91 291.289.764,89 2015/16 68.591.904,06
AGRANA Group-Service GmbH 100 -3.885.637,80 2015/16 314.698,42
INSTANTINA Nahrungsmittel Entwick
lungs- und Produktions- GesmbH, Wien
66,67 8.194.962,07 2015/16 622.719,45
AGRANA Research & Innovation Center
GmbH, Tulln
100 3.883.887,39 2015 270.237,35

*) Die restlichen Anteile auf 100 % werden von Tochtergesellschaften gehalten.

Die Ausleihungen an verbundene Unternehmen betreffen die AGRANA Group-Services GmbH, Wien und haben eine Restlaufzeit von 1 bis 5 Jahren (€ 105.000.000,00) bzw. von mehr als 5 Jahren (€ 21.000.000,00).

• • • • • • • • •

• • • •

167

in EUR (Vorjahr in T EUR) Restlaufzeit Restlaufzeit von
mehr
Bilanzwert
bis 1 Jahr als 1 Jahr
Forderungen gegenüber verbundenen
Unternehmen 218.933.140,36 0,00 218.933.140,36
(28.02.2015) (138.485) 0 (138.485)
S onstige Forderungen und
Vermögensgegenstände 1.384.083,80 5.563.076,01 6.947.159,81
(28.02.2015) (10.583) (9) (10.592)
Summe 220.317.224,16 5.563.076,01 225.880.300,17
(28.02.2015) (149.067) (9) (149.076)

(2) Forderungen und sonstige Vermögensgegenstände

Die Forderungen gegen verbundene Unternehmen betreffen in Höhe von EUR 218.933.140,36 (im Vorjahr 138.485 TEUR) sonstige Forderungen.

Die sonstigen Forderungen und Vermögensgegenstände enthalten im Wesentlichen Abgrenzungen von Zinsen aus Partizipationsscheinen in Höhe von EUR 0,00 (im Vorjahr 5.206 TEUR), Forderungen aus Kapitalertragsteuer gegenüber dem Finanzamt Wien 1/23 in Höhe von EUR 6.859.367,74 (im Vorjahr 5.211 TEUR) sowie andere kurzfristige Forderungen.

In den sonstigen Forderungen sind wesentliche Erträge, die erst nach dem Bilanzstichtag zahlungswirksam werden, in der Höhe von EUR 0,00 (im Vorjahr 5.206 TEUR) enthalten.

(3) Grundkapital

Das Grundkapital in Höhe von EUR 103.210.249,78 setzt sich aus 14.202.040 Stück nennbetragslose Stückaktien – Stammaktien zusammen.

(4) Kapitalrücklagen

Kapitalrücklagen Stand 01.03.2015 Veränderung Stand 29.02.2016
EUR EUR EUR
Gebundene 373.422.710,55 0,00 373.422.710,55
Nicht gebundene 45.566.884,45 0,00 45.566.884,45
Summe 418.989.595,00 0,00 418.989.595,00

(5) Gewinnrücklagen

Stand 01.03.2015 Veränderung Stand 29.02.2016
EUR EUR EUR
Gesetzliche Rücklage 47.964,07 0,00 47.964,07
Andere Rücklagen (freie Rücklagen) 13.880.000,00 0,00 13.880.000,00
Summe 13.927.964,07 0,00 13.927.964,07

• • • • • • • • •

• • • •

169

(6) Rückstellungen

Die Berechnung der Rückstellungen für Abfertigungen und der sonstigen Rückstellungen wird unter den Bilanzierungs- und Bewertungsgrundsätzen erläutert.

Die Abfertigungsrückstellungen und die sonstigen Rückstellungen gliedern sich wie folgt:

S tand Verbrauch Auflösung Zuweisung S tand am
28.02.2015 29.02.2016
in EUR in EUR in EUR in EUR in EUR
Abfertigung 3.389.965,56 130.114,56 3.520.080,12
Pensionsansprüche 1.291.387,29 425.771,86 1.717.159,15
Jubiläumsgelder 374.525,82 2.791,30 45.548,36 417.282,88
Altersteilzeit 30.529,23 34.091,82 64.621,05
Nicht konsumierte Urlaube 2.016.517,60 415.101,19 1.601.416,41
S onderzahlungen 358.966,53 27.361,12 331.605,41
Prüfungsaufwand 266.000,00 226.192,12 39.807,88 266.900,00 266.900,00
Veröffentlichungsaufwand 140.000,00 117.220,45 22.779,55 131.000,00 131.000,00
Kosten der
Hauptversammlung
45.000,00 45.000,00 54.000,00 54.000,00
Kosten Bilanzpresse
konferenz
3.500,00 2.438,40 1.061,60 3.500,00 3.500,00
Konzernkommunikation 78.415,00 8.301,50 70.113,50 7.000,00 7.000,00
Aufsichtsratsvergütungen 250.000,00 250.000,00 250.000,00 250.000,00
Pensionskasse 92.916,00 92.916,00 169.375,00 169.375,00
S onstige ausstehende
Eingangsrechnungen
337.427,00 307.227,07 30.199,93 412.745,00 412.745,00
Summe 8.675.150,03 1.494.549,15 163.962,46 1.930.046,60 8.946.685,02

Die als Verbrauch dargestellten EUR 2.791,30 bei der Jubiläumsrückstellung bzw. EUR 13.272,15 des Verbrauchs der Urlaubsrückstellung betreffen Übertritte in andere Konzerngesellschaften. Die Zuweisung im Geschäftsjahr wurde einerseits aufgrund der Senkung des Zinssatzes und andererseits aufgrund der internen Änderung zur Prämienauszahlung notwendig.

Die Pensionsansprüche stellen Nachschussverpflichtungen an die Pensionskasse dar für kapitalmäßige Deckungslücken der bereits im Jahr 2002 übertragenden Anwartschaften.

Die Rückstellung für ausstehende Eingangsrechnungen betrifft im Wesentlichen offene Leistungen für IT-Projekte und ausstehende Abrechnungen.

(7) Verbindlichkeiten

29.02.2016 28.02.2015
in EUR in TEUR
Verbindlichkeiten gegenüber Kreditinstituten 126.000.111,21 126.000
davon mit RLZ von bis 1 Jahr (111,21) (0)
davon mit RLZ von 1 bis 5 Jahren (105.000.000,00) (105.000)
davon mit RLZ von mehr als 5 Jahren (21.000.000,00) (21.000)
Verbindlichkeiten aus Lieferungen und Leistungen 1.139.489,92 759
davon mit RLZ von bis 1 Jahr (1.139.489,92) (759)
davon mit RLZ von 1 bis 5 Jahren (0,00) (0)
davon mit RLZ von mehr als 5 Jahren (0,00) (0)
Verbindlichkeiten gegenüber
verbundenen Unternehmen 11.236.098,05 11.798
davon mit RLZ von bis 1 Jahr (11.236.098,05) (11.798)
Sonstige Verbindlichkeiten 5.505.308,77 5.365
davon mit RLZ von bis 1 Jahr (5.505.308,77) (5.365)
Summe 143.881.007,95 143.922
davon mit RLZ von bis 1 Jahr (17.881.007,95) (17.922)
davon mit RLZ von 1 bis 5 Jahren (105.000.000,00) (105.000)
davon mit RLZ von mehr als 5 Jahren (21.000.000,00) (21.000)

RLZ = Restlaufzeit

Die Verbindlichkeiten gegenüber Kreditinstituten betreffen mit TEUR 126.000 ein Schuldscheindarlehen, welches von 31 Banken und Pensionsfonds gezeichnet wurde.

Der gesamte Gegenwert des Schuldscheindarlehens wurde konzernintern mit gleicher Kondition und Laufzeit an die für Finanzierungen zuständige AGRANA Group-Services GmbH weitergereicht und wird dort für allgemeine Refinanzierungszwecke verwendet.

In den sonstigen Verbindlichkeiten sind die Abgrenzungen für erfolgsabhängige Personalprämien in Höhe von EUR 3.044.430,47 (im Vorjahr 2.955 TEUR) und Verbindlichkeiten von Abgaben in Höhe von EUR 1.049.521,96 (im Vorjahr 1.042 TEUR) enthalten.

In den Verbindlichkeiten gegen verbundenen Unternehmen sind sonstige Verbindlichkeiten in Höhe von EUR 11.236.098,05 (im Vorjahr 11.798 TEUR) enthalten, welche fast ausschließlich die Verrechnungen aus der Gruppenbesteuerung betreffen.

Die Miete im Raiffeisenhaus für das Geschäftsjahr 2015/16 beträgt inkl. Garage EUR 1.468.152,42 (im Vorjahr 1.355 TEUR). Für fünf Jahre beträgt die Miete aus heutiger Sicht insgesamt EUR 6.983.853,00

• • • • • • • • •

• • • •

171

29.02.2016 28.02.2015
in EUR in TEUR
Haftungen aus Wechselobligo 7.800.000,00 7.800
Haftungen aus Zahlungsgarantien 192.588.852,00 165.069
Summe 200.388.852,00 172.869
davon gegenüber verbundenen Unternehmen 156.694.879 132.371

(8) Haftungsverhältnisse, sonstige Verpflichtungen (§ 237 Z 3 und Z 8 UGB)

D. ERLÄUTERUNGEN ZUR GEWINN- UND VERLUSTRECHNUNG

Die Gewinn- und Verlustrechnung umfasst im Berichtsjahr den Zeitraum vom 01. März 2015 bis 29. Februar 2016, im Vorjahr jenen vom 01. März 2014 bis 28. Februar 2015.

(9) Umsatzerlöse

Die Umsatzerlöse in Höhe von EUR 11.693.300,00 (im Vorjahr 11.306 TEUR) beinhalten nur Erträge aus der Konzernverrechnung für die Nutzung der Lizenzen für Markenrechte (Royalities).

(10) Die Erträge aus dem Abgang von Anlagevermögen mit Ausnahme der Finanzanlagen belaufen sich auf EUR 15.796,33 (im Vorjahr 20 TEUR).

(11) Die Erträge aus der Auflösung von Rückstellungen von EUR 163.962,46 (im Vorjahr 105 TEUR) beinhalten im Wesentlichen die Auflösung von Rückstellungen für ausstehende Eingangsrechnungen in Höhe von EUR 93.954,65 (im Vorjahr 33 TEUR) betreffend Veröffentlichungsaufwand und Konzernkommunikation.

(12) Die übrigen sonstigen betrieblichen Erträge von EUR 21.389.741,02 (im Vorjahr 23.705 TEUR) enthalten Erträge für Durchlaufposten, IT-Leistungen und Personal in Höhe von EUR 20.788.200,02 (im Vorjahr 23.388 TEUR) sowie Versicherungsansprüche in Höhe von EUR 155.000,00 (im Vorjahr 2 TEUR).

• • • • • • • • •

• • • •

173

(13) Personalaufwand

Summe 19.655.183,61 23.922
S onstige S ozialaufwendungen 252.265,56 269
S ozialabgaben und Personalnebenkosten 2.937.521,34 3.106
Aufwendungen für Altersversorgung 1.305.510,21 3.059
Leistungen an betriebliche Mitarbeitervorsorge
kassen (MVK)
152.587,74 201
Aufwendungen für Abfertigungen 307.897,22 1.384
Gehälter 14.699.401,54 15.903
in EUR in T EUR
2015/16 2014/15

davon entfallen

Abfertigungen und Leistun
gen an betriebliche Mitarbei
tervorsorgekassen
Pensionen (Rückstellungen)
2015/16 2014/15 2015/16 2014/15
EUR TEUR EUR TEUR
Vorstand u. Personen lt. § 80 AktG 161.641,26 925 1.286.214,41 3.041
andere Arbeitnehmer 298.843,70 660 19.295,80 18
Summe 460.484,96 1.585 1.305.510,21 3.059

Die durchschnittliche Zahl der Arbeitnehmer (ohne Vorstandsmitglieder) während des Geschäftsjahres betrug 149 Angestellte (im Vorjahr 165 Angestellte).

Die Gesamtbezüge der Vorstandsmitglieder betrugen im Berichtsjahr EUR 3.398.238,97 (im Vorjahr 3.796 TEUR). An die Pensionskasse wurden an laufenden Beiträgen EUR 860.442,55 (im Vorjahr 2.952 TEUR) für die Vorstandsmitglieder bezahlt. Weiters wurde der Vorsorge für künftige Pensionsansprüche ein Betrag in Höhe von EUR 425.771,86 (im Vorjahr 88 TEUR Zuführung) zugewiesen.

Die Mitglieder des Aufsichtsrates erhielten für ihre Tätigkeit im Geschäftsjahr 2015/16 eine Vergütung von EUR 250.000,00 (im Vorjahr 250 TEUR).

(14) Sonstige betriebliche Aufwendungen

Die übrigen sonstigen betriebliche Aufwendungen betragen EUR 18.442.042,92 (im Vorjahr 22.129 TEUR) und umfassen im Wesentlichen EDV-Aufwand inkl. EDV Beratung von EUR 7.045.627,22 (im Vorjahr 8.753 TEUR), Rechts-, Prüfungs- und Beratungsaufwendungen von EUR 1.398.492,66 (im Vorjahr 3.031 TEUR), Leasing, Mieten und Pachten von EUR 2.078.119,93 (im Vorjahr 1.570 TEUR), Werbeaufwendungen von EUR 1.560.239,13 (im Vorjahr 1.194 TEUR) sowie andere Aufwendungen in Höhe von EUR 6.359.563,98 (im Vorjahr 7.581 TEUR).

(15) Erträge aus Beteiligungen

Summe 61.177.288,70 61.915
Erträge von sonstigen Beteiligungen 10.000,00 5
Erträge von verbundenen Unternehmen 61.167.288,70 61.910
in EUR in T EUR
2015/16 2014/15

(16) Aufwendungen aus Finanzanlagen

Aufgrund einer dauerhaften Wertminderung der AGRANA Group-Services GmbH, Wien wurde die Beteiligung per 28.02.2015 um EUR 5.460.000 abgewertet. Im Geschäftsjahr mussten keine Wertminderungen berücksichtigt werden.

• • • • • • • • •

• • • •

175

2015/16 2014/15
in EUR in TEUR
Körperschaftsteuer -3.906.700,00 -4.842
Körperschaftsteuer Vorperioden 505.976,88 -418
Steuerumlagen 3.765.685,74 6.395
nicht abzugsfähige Quellensteuer -14.306,19 -41
Summe 350.656,43 1.094

(17) Steuern vom Einkommen

Mit dem Steuerreformgesetz 2005 wurde ein neues Konzept der Besteuerung von Unternehmensgruppen eingeführt. Die AGRANA-Gruppe hat entsprechend dieser Bestimmungen eine Unternehmensgruppe bestehend aus AGRANA Beteiligungs-Aktiengesellschaft als Gruppenträger und AGRANA Zucker GmbH, AGRANA Stärke GmbH, AGRANA Marketing- und Vertriebsservice Gesellschaft m.b.H., AGRANA Internationale Verwaltungs- und Asset-Management GmbH, AUSTRIA Juice GmbH, AGRANA Group-Services GmbH, INSTANTINA Nahrungsmittel Entwicklungs- und Produktionsgesellschaft m.b.H. als Gruppenmitglieder gebildet. Zwischen den Gruppenmitgliedern und dem Gruppenträger erfolgt eine Steuerumlagenverrechnung.

E. SONSTIGE ANGABEN

Beziehungen zu verbundenen Unternehmen (§ 238 Z 3 UGB)

AGRANA AGRO SRL, Roman, Rumänien AGRANA Amidi srl, Sterzing, Italy AGRANA BiH Holding GmbH, Wien, Österreich AGRANA BUZAU SRL, Buzau, Rumänien AGRANA Croatia d.o.o., Zagreb, Kroatia AGRANA d.o.o., Brčko, Bosnien-Herzegowina AGRANA Fruit Argentina S.A., Buenos Aires, Argentinien AGRANA Fruit Australia Pty Ltd, Central Mangrove, Australien AGRANA Fruit Austria GmbH, Gleisdorf, Österreich AGRANA Fruit Brasil Indústria, Comércio, Importacao e Exportacao Ltda., São Paulo, Brasilien AGRANA Fruit Brasil Participacoes Ltda., São Paulo, Brasilien AGRANA Fruit Dachang Co., Ltd, Dachang, China AGRANA Fruit Fiji Pty. Ltd, Sigatoka, Fidschi AGRANA Fruit France S.A., Mitry-Mory, Frankreich AGRANA Fruit Germany GmbH, Konstanz, Deutschland AGRANA Fruit Istanbul Gida Sanayi ve Ticaret A.S., Zincirlikuyu, Türkei AGRANA Fruit Korea Co. Ltd, Seoul, Südkorea AGRANA Fruit Latinoamerica S. de R.L de C.V, Michoacán, Mexico AGRANA Fruit Luka TOV, Winniza, Ukraine AGRANA Fruit México, S.A. de C.V., Michoacán, Mexico AGRANA Fruit Polska SP z.o.o., Ostrołęka, Polen AGRANA Fruit S.A.S., Mitry-Mory, Frankreich AGRANA Fruit Services GmbH, Wien, Österreich AGRANA Fruit Services S.A.S., Mitry-Mory, Frankreich AGRANA Fruit South Africa (Proprietary) Ltd, Kapstadt, Südafrika AGRANA Fruit Ukraine TOV, Winniza, Ukraine AGRANA Fruit US, Inc, Brecksville, USA


AGRANA Group-Services GmbH, Wien

AGRANA Internationale Verwaltungs-
und Asset-Management GmbH, Wien,

Österreich

AGRANA Juice Denmark A/S, Køge, Dänemark

AGRANA Juice Magyarorzág Kft., Vásarosnamény, Ungarn

AGRANA Juice Romania Vaslui s.r.l., Vaslui, Rumänien

AGRANA Juice Sales & Marketing GmbH, Bingen, Deutschland

AGRANA JUICE (XIANYANG) CO.,LTD, Xianyang City, China
AGRANA Magyarorzág Értékesitési Kft., Budapest, Ungarn
AGRANA Makedonija DOOEL Skopje, Skopje, Macedonia

AGRANA Marketing-
und Vertriebsservice Gesellschaft m.b.H., Wien, Österreich

AGRANA Nile Fruits Processing (SAE), Qalyoubia, Ägypten

AGRANA Research & Innovation Center GmbH, Wien, Österreich
AGRANA Skrob s.r.o., Hrušovany, Tschechien
AGRANA Stärke GmbH, Wien, Österreich
AGRANA TANDAREI SRL, Țăndărei, Rumänien
AGRANA Trading EOOD, Sofia, Bulgarien
AGRANA Zucker GmbH, Wien, Österreich
AGRANA ZHG Zucker Handels GmbH, Wien, Österreich

AUSTRIA JUICE GmbH, Allhartsberg, Österreich
AUSTRIA JUICE Germany GmbH, Bingen, Deutschland

177
AUSTRIA JUICE Ukraine LLC, Winniza, Ukraine

AUSTRIA JUICE Poland Sp.z.o.o., Chelm, Polen

Biogáz Fejlesztő Kft., Kaposvár, Ungarn
Cukoripari Egyesüles, Budapest, Hungary
DELHIA SHELF s.r.o., Hrusovany, Czech Republic
Dirafrost FFI N.V., Herk-de-Stad, Belgien
Dirafrost Maroc SARL, Laouamra, Marokko
Dr. Hauser Gesellschaft m.b.H., Hamburg, Deutschland
Financière Atys S.A.S., Mitry-Mory, Frankreich
INSTANTINA Nahrungsmittel Entwicklungs-
und Produktionsgesellschaft m.b.H., Wien,
Österreich
Koronás Irodaház Szolgáltató Korlátolt Felelösségü Társaság, Budapest, Ungarn

Magyar Cukorgyártó és Forgalmazó Zrt., Budapest, Ungarn Moravskoslezské Cukrovary A.S., Hrušovany, Tschechien o.o.o. AGRANA Fruit Moscow Region, Serpuchov, Russland Österreichische Rübensamenzucht Gesellschaft m.b.H., Wien, Österreich PERCA s.r.o., Hrušovany, Tschechien S.C. A.G.F.D. Tandarei s.r.l., Țăndărei, Rumänien S.C. AGRANA Romania S.A., Bukarest, Rumänien Slovenské Cukrovary s.r.o., Sered', Slowakei Yube d.o.o., Požega, Serbien

SÜDZUCKER Aktiengesellschaft Mannheim/Ochsenfurt, Mannheim, Deutschland mit ihren Tochtergesellschaften

Beziehungen zu assoziierten Unternehmen

"AGRAGOLD" d.o.o., Brcko, Bosnien-Herzegowina AGRAGOLD d.o.o., Zagreb, Kroatien AGRAGOLD dooel, Skopje, Mazedonien AGRAGOLD trgovina d.o.o. , Ljubljana, Slowenien AGRANA STUDEN Albania, Tirane, Albanien AGRANA-STUDEN Beteiligungs GmbH, Wien, Österreich AGRANA-STUDEN Sugar Trading GmbH, Wien, Österreich Company for trade and services AGRANA-STUDEN Serbia d.o.o. Beograd, Beograd, Serbien GreenPower E85 Kft, Szabadegyháza, Ungarn HUNGRANA Keményitö- és Isocukorgyártó és Forgalmazó Kft., Szabadegyháza, Ungarn HungranaTrans Kft., Szabadegyháza, Ungarn SCO STUDEN & CO. BRASIL EXPORTACAO E IMPORTACAO LTDA., Sao Paulo, Brasilien STUDEN-AGRANA Rafinerija Secera d.o.o., Brčko, Bosnien-Herzegowina

• • • • • • • • •

• • • •

179

F. Aufwendungen für den Abschlussprüfer (§ 237 Z14 UGB)

KPMG Austria GmbH
Wirtschaftsprüfungs- und
S teuerberatungsgesellschaft
Summe
31.070,00 235.830,00
31.070,00 235.830,00
12.925,00 279.825,00
12.925,00 279.825,00
32
32
234
234
5
5
271
271
Jahres
abschluss
EUR
Bestätigungs
leistungen
EUR
Leistungen
EUR
Gesamt
EUR
Jahres
abschluss
T EUR
Bestätigungs
leistungen
T EUR
Leistungen
T EUR
Gesamt
T EUR
2015/2016 Andere sonstige 2014/2015 Andere sonstige

G. ORGANE UND ARBEITNEHMER (§ 239 UGB)

Aufsichtsrat:

Mag. Erwin HAMESEDER, Mühldorf Vorsitzender Dr. Wolfgang HEER, Mannheim Stellvertreter des Vorsitzenden Mag. Klaus BUCHLEITNER, MBA, Wien Stellvertreter des Vorsitzenden Dr. Hans-Jörg GEBHARD, Eppingen Dipl.Ing. Josef PRÖLL, Wien Dipl. Ing. Ernst KARPFINGER, Oberweiden Dr. Thomas KIRCHBERG, Ochsenfurt Dr. Jochen FENNER, Gelchsheim

Vom Betriebsrat delegiert: Dipl.Ing. Stephan SAVIC, Wien Karl ORTHABER, Gleisdorf Thomas BUDER, Katzelsdorf Gerhard GLATZ, Hohenberg

Vorstand:

Dipl.-Ing. Johann MARIHART, Limberg (Vorsitzender) Mag. Dipl.-Ing. Dr. Fritz GATTERMAYER, Klosterneuburg Mag. Stephan BÜTTNER, Wien Dkfm. Thomas KÖLBL, Speyer

Wien, am 25. April 2016

Der Vorstand:

Dipl.-Ing. Johann Marihart e.h. Mag. Dipl.-Ing. Dr. Fritz Gattermayer e.h.

Mag. Stephan Büttner e.h. Dkfm. Thomas Kölbl e.h.

ENTWICKLUNG DES ANLAGEVERMÖGENS IM WIRTSCHAFTSJAHR 2015|16 Entwicklung des Anlagevermögens im Wirtschaftsjahr 2015/2016

A N L A G E V E R M Ö G E N Anschaffungskosten
Stand
01.03.15
Zugang Abgang Stand
29.02.16
I. Immaterielle Vermögensgegenstände
1. Markenrechte 611.300,93 0,00 0,00 611.300,93
2. EDV-Software 8.132.986,93 387.934,88 4.455,00 8.516.466,81
3. Geringwertige Vermögensgegenstände 0,00 14.883,84 14.883,84 0,00
8.744.287,86 402.818,72 19.338,84 9.127.767,74
II. Sachanlagen
1. Bauten, einschließlich der Bauten
auf fremdem Grund 0,00 0,00 0,00 0,00
2. Betriebs- und Geschäftsausstattung 4.601.763,23 266.556,80 339.709,82 4.528.610,21
3. Geringwertige Vermögensgegenstände 8.881,97 8.881,97 0,00
4.601.763,23 275.438,77 348.591,79 4.528.610,21
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen 424.145.490,31 0,00 0,00 424.145.490,31
2. Ausleihungen an verbundene
Unternehmen 126.000.000,00 0,00 0,00 126.000.000,00
3. Beteiligungen 258.620,00 0,00 0,00 258.620,00
4. Wertpapiere (Wertrechte) des
Anlagevermögens 85.000.000,00 0,00 85.000.000,00 0,00
635.404.110,31 0,00 85.000.000,00 550.404.110,31
Gesamtsumme 648.750.161,40 678.257,49 85.367.930,63 564.060.488,26

• • • • • • • • •

• • • •

183

Abschreibungen Buchwerte
Stand
01.03.15
Jahres-
abschreibung
Zuschreibung Abgang Stand
29.02.16
Stand
29.02.16
Stand
28.02.15
502.494,93 61.016,00 0,00 563.510,93 47.790,00 108.806,00
7.341.502,93 621.968,88 4.455,00 7.959.016,81 557.450,00 791.484,00
0,00
7.843.997,86
14.883,84
697.868,72
14.883,84
19.338,84
0,00
8.522.527,74
0,00
605.240,00
0,00
900.290,00
0,00
2.458.669,05
0,00
796.976,80
0,00
293.708,82
0,00
2.961.937,03
0,00
1.566.673,18
0,00
2.143.094,18
8.881,97 8.881,97 0,00 0,00 0,00
2.458.669,05 805.858,77 302.590,79 2.961.937,03 1.566.673,18 2.143.094,18
7.120.724,48 0,00 0,00 0,00 7.120.724,48 417.024.765,83 417.024.765,83
0,00 0,00 0,00 0,00 126.000.000,00 126.000.000,00
0,00 0,00 0,00 0,00 258.620,00 258.620,00
0,00 0,00 0,00 0,00 0,00 85.000.000,00
7.120.724,48 0,00 0,00 0,00 7.120.724,48 543.283.385,83 628.283.385,83
17.423.391,39 1.503.727,49 0,00 321.929,63 18.605.189,25 545.455.299,01 631.326.770,01

• • • • • • • • •

• • • •

185

Statement by the members of the Management Board

In accordance with section 82 (4) Austrian Stock Exchange Act, the undersigned members of the Management Board, as the legal representatives of AGRANA Beteiligungs-AG, confirm to the best of their knowledge that:

█ the separate financial statements for the year ended 29 February 2016 give a true and fair view of the financial position, results of operations and cash flows of the parent company as required by the applicable accounting standards;

█ the management report for the 2015|16 financial year presents the business performance, financial results and situation of AGRANA Beteiligungs-AG in such a way as to provide a true and fair view of AGRANA's financial position, results of operations and cash flows, together with a description of the principal risks and uncertainties faced by the company.

Vienna, 25 April 2016

Johann Marihart Stephan Büttner Chief Executive Officer Member of the Management Board Present responsibilities: Business Strategy, Present responsibilities: Finance, Controlling, Production, Quality Management, Human Resources, Treasury, Information Technology and Organisation, Communication (including Investor Relations), Mergers & Acquisitions, Compliance, Legal, Research and Development, and Starch Segment and Fruit Segment

Fritz Gattermayer Thomas Kölbl Member of the Management Board Member of the Management Board Present responsibilities: Sales, Raw Materials, Responsibility on Internal Audit Purchasing & Logistics, and Sugar Segment

Independent auditor's report 186 Independent auditor's report [Translation]

Report on the Financial Statements

We have audited the accompanying financial statements of AGRANA Beteiligungs-Aktiengesellschaft, Vienna, that comprise the statement of financial position as of 29 February 2016, the income statement for the fiscal year then ended, and the notes.

Management's Responsibility for the Financial Statements

The Company's management is responsible for the preparation and fair presentation of these financial statements in accordance with Austrian Generally Accepted Accounting Principles and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Austrian Standards on Auditing. Those standards require that we comply with International Standards on Auditing – ISA. In accordance with International Standards on Auditing, we are required to comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

• • • • • • • • •

• • • •

187

Opinion

Our audit did not give rise to any objections. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of 29 February 2016, and its financial performance for the year then ended in accordance with Austrian Generally Accepted Accounting Principles

Report on Other Legal Requirements (Management Report)

Pursuant to statutory provisions, the management report is to be audited as to whether it is consistent with the financial statements and as to whether the other disclosures are not misleading with respect to the Company's position. The auditor's report also has to contain a statement as to whether the management report is consistent with the financial statements and whether the disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.

In our opinion, the management report is consistent with the financial statements. The disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.

Vienna, 25 April 2016

KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft

signed by:

Mag. Rainer Hassler Wirtschaftsprüfer (Austrian Chartered Accountant)

The financial statements together with our auditor's opinion may only be published if the financial statements and the management report are identical with the audited version attached to this report. Section 281 paragraph 2 UGB (Austrian Commercial Code) applies.

Proposed appropriation of profit 188 Proposed appropriation of profit

AGRANA Beteiligungs-AG

under Austrian Commercial Code (UGB)

2015 16
The financial year to 29 February 2016
closed with the following net profit available for distribution 68,563,879
The Management Board proposes to the
Annual General Meeting to allocate this profit as follows:
Distribution of a dividend of € 4.00 per ordinary
no-par value share on 14,202,040 participating ordinary shares,
that is, a total of 56,808,160
Profit to be carried forward 11,755,719
68,563,879

Publication information Publication information 189

• • • • • • • • • • • •

• • • • • • • • •

• • • •

189

Published by:
AGRANA Beteiligungs-AG
Friedrich-Wilhelm-Raiffeisen-Platz 1, 1020 Vienna, Austria
Corporate Communications/Investor Relations
Hannes Haider
Phone: +43-1-211 37-12905, Fax: +43-1-211 37-12926
E-mail: [email protected]
Corporate Communications/Sustainability
Ulrike Middelhoff
Phone: +43-1-211 37-12971, Fax: +43-1-211 37-12926

Layout and design: marchesani_kreativstudio GmbH Creative concept and design: WIEN NORD Werbeagentur GmbH English translation: Martin Focken Translating & Editing

E-mail: [email protected]

Forward-looking statements

This annual financial report contains forward-looking statements, which are based on assumptions and estimates made by the Management Board of AGRANA Beteiligungs-AG. Although these assumptions, plans and projections represent the Management Board's current intentions and best knowledge, a large number of internal and external factors may cause actual future developments and results to differ materially from these assumptions and estimates. Some examples of such factors are, without limitation: negotiations concerning world trade agreements; changes in the overall economic environment, especially in macroeconomic variables such as exchange rates, inflation and interest rates; EU sugar policy; consumer behaviour; and public policy related to food and energy. AGRANA Beteiligungs-AG does not guarantee in any way that the actual future developments and actual future results achieved will match the assumptions and estimates expressed or made in this annual financial report, and does not accept any liability in the event that assumptions and estimates prove to be incorrect.

In the interest of readability, this document may occasionally use language that is not gender-neutral. Any gender-specific references should be understood to include masculine, feminine and neuter as the context permits.

As a result of the standard round-half-up convention used in rounding individual amounts and percentages, this report may contain minor, immaterial rounding errors.

No liability is assumed for misprints, typographical or similar errors.

The English translation of the AGRANA annual financial report is solely for readers' convenience and is not definitive. In the event of discrepancy or dispute, only the German-language version shall govern.

AGRANA 2015|16 Online reports.agrana.com/en

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