Annual Report • May 30, 2018
Annual Report
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ANNUAL FINANCIAL REPORT 2017|18
of AGRANA Beteiligungs-AG for the year ended 28 February 2018
Business segments and procurement models 4
Sustainability outlook for 2018|19 60
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 8,700 employees (in FTE1) at 57 production sites on six continents, the Group generated revenue of approximately € 2.6 billion in the 2017|18 financial year. AGRANA was established in 1988 and has been quoted on the Vienna Stock Exchange since 1991.
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.
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 both into the food and beverage industry and the paper, textile, cosmetics and building materials sectors and other non-food industries. 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, ice cream and food service 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 concentrate business, at production sites located mainly in Europe, AGRANA produces apple and berry juice concentrates, not-from-concentrate juices, fruit wines, beverage bases and aromas. 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.
201-2, 205-1, 205-2, 205-3, 206-1
The thickness of lines marking the business relationships represents the relative volume of flows within the respective business segment.
Direct business relationship
No direct business relationship for AGRANA
In line with its business activities and its sustainability priorities in the areas of energy efficiency, complete raw material utilisation, attention to environmental and social criteria in procurement, and business ethics, AGRANA supports especially the Sustainable Development Goals (SDGs) 8, 13, 15 and 16 adopted in September 2015 by the General Assembly of the United Nations. For the first time these goals also engage the private sector in furthering the achievement of development goals. In addition, AGRANA contributes to the attainment of Goals 2 to 7, 12, 14 and 17.
Non-financial information statement
under section 267a Austrian Commercial Code¹
AGRANA reports non-financial sustainability matters (i.e., topics)2 that are material to its business activities3 by integrating them in the Group management report, with the relevant pages visually marked by a green fingerprint. This non-financial information statement provides an overview of AGRANA's understanding of sustainability, the AGRANA materiality matrix, management approaches for the key non-financial matters/topics, and the organisational and content boundaries of the sustainability reporting. Management measures taken, performance indicators as well as goals in the individual areas are presented in the business segment reports, the section "AGRANA's people" and the corporate governance report.
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:
AGRANA has developed its understanding of sustainability through regular interactions with its stakeholders:
information subjects as "matters", while the GRI Standards now refer to sustainability subjects as "topics", replacing the old term "Aspects" used under the GRI G4 Reporting Guidelines.
3 For a description of the business model, see the section "Organisational structure" from page 4.
█ Day for new contract growers in the Starch segment
█ Oktoberfest at the AGRANA starch plant in Aschach, Austria
8
Segment-specific targets in the supply chain (see segment reports)
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 (see segment reports)
Value chain wsk.agrana.com/en
In the 2017|18 financial year, AGRANA's Sugar, Starch and Fruit segments processed a worldwide total of approximately 9.7 million tonnes of agricultural raw materials (prior year: 10.6 million tonnes) and sold 5.8 million tonnes of high-quality products (prior year: 5.9 million tonnes).
Based on its business activities, AGRANA in 2012|13 identified six issues of interest along its product value chain:
As part of a revision of the materiality analysis in the 2017|18 financial year, the AGRANA sustainability core team assessed the environmental, economic and social impacts of individual sustainability aspects of AGRANA's business activities. The AGRANA Group's most significant impacts overall arise in the area of environmental and energy topics, as a result of its value-added processing of agricultural raw materials, which is energy-intensive especially in the Sugar and Starch segments. However, within the Fruit segment, due to the global scale of its raw material sourcing, the highest impacts are those of the supplier operations from which AGRANA procures its fruit.
In order to evaluate the significance of the cited sustainability topics for the assessment of the Group by external and internal stakeholders, AGRANA commissioned a survey of representative stakeholders1, using a structured questionnaire. For the stakeholders the issues of product safety, compliance with legal requirements, workplace safety, and energy consumption and emissions were, on average, the highest priority across all business segments. Only stakeholders of the globally operating Fruit segment saw the topic of environmental and social criteria in procurement as being more significant. They expect AGRANA to implement uniformly high standards both in its own product value chain and its supply chain. This applies particularly to suppliers' use of sustainable agriculture practices that employ energy and water efficiently and to suppliers' compliance with the social criteria of the AGRANA Code of Conduct. The stakeholders surveyed regarded the issue of "social engagement and stakeholder inclusion" as having very little significance. In the future it will therefore no longer be considered a material topic, but will continue to be reported on a voluntary basis.
This report covers all topics under which AGRANA has material impacts or that have high significance for AGRANA's stakeholders (see annual report 2017|18, GRI content index from page 179).
The organisational boundaries for the reporting of the non-financial (i.e., sustainability) information integrated in this 2017|18 annual report encompass all AGRANA Group companies worldwide and match the set of companies included in the Group's financial consolidation, with the exception of the new AGRANA company for fruit preparations in India, which was only consolidated for the first time towards the end of the 2016|17 financial year and only began production towards the end of 2017|18.
For organisational boundary reasons, the non-financial (i.e., sustainability) data continue to exclude 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).
AGRANA's business activities are divided into three business segments. The reporting of non-financial information and GRI indicators follows this structure, as the differences in business processes between these segments could reduce or distort the significance of data consolidated at Group level (for example, data on energy consumption and emissions).
1 Representatives of the following stakeholder groups: customers, suppliers, employees, shareholders and local communities.
For ease of understanding of the reporting scope and the underlying management approaches, a more detailed demarcation in terms of content is necessary for the following matters/topics of particular relevance to AGRANA's stakeholders.
Environmental and social criteria in the procurement of agricultural raw materials and intermediate products In view of its core business of processing agricultural raw materials and of the associated very significant procurement volumes and costs, as well as the potential for negative environmental and social impacts of crop production, AGRANA concentrates its sustainability work in the supply chain on suppliers of agricultural raw materials and intermediate goods (such as frozen fruit pieces) and limits its non-financial reporting scope to this area of procurement. In accordance with the precautionary principle, AGRANA seeks to avoid or minimise environmental risks from the growing of raw materials (such as detrimental effects on soil health and retention, water availability and quality, and biodiversity) and social risks (such as negative impacts on working conditions and human rights, and particularly the risk of child labour) by promoting good agricultural practices and compliance with social standards, such as the standards of the International Labour Organization, in its supply chain. Although AGRANA has no direct control over its suppliers' practices, its procurement contributes to the potential for the impacts described and the Group's business relationships thus indirectly link it to effects in the supply chain. AGRANA has set out its requirements for agricultural suppliers in its principles for the procurement of agricultural raw materials and intermediate products, a document which, for the social criteria, refers to and thus incorporates AGRANA's Code of Conduct. The principles for the procurement of agricultural raw materials and intermediate products are incorporated in supply contracts.
the Sustainable Agriculture Initiative (SAI) In order to work on and document sustainability topics in the agricultural supply chain in a structured way regardless of the procurement model, AGRANA Beteiligungs-AG has since July 2014 been an active member of the Sustainable Agriculture Initiative Platform (SAI, a food industry initiative founded in 2002), and, with its Sugar, Starch and Fruit segments, participates in all working groups and committees relevant to its raw materials.
The SAI gives processors of agricultural raw materials like AGRANA several helpful tools particularly for the evaluation and documentation of conformity with good environmental and social practices in the agricultural supply chain and for comparing the value of different documentation types and international certifications.
The underlying tool is always the Farm Sustainability Assessment (FSA) created by the SAI. This assessment is carried out using a 112-point questionnaire covering all features relevant to sustainability, such as farm management, working conditions (including questions on child and forced labour), soil and nutrient management and crop protection. Depending on the fulfilment of the various criteria, each farm receives a sustainability rating designated by a status of "gold", "silver", "bronze", or "not yet bronze".
For procurement sectors without direct access to the agricultural producers of the raw materials, the SAI makes available a very comprehensive benchmarking of the FSA requirements against the national legislation of many countries, against relevant international certification standards (such as Global GAP, Rainforest Alliance, Bonsucro, etc.), and even against some company-specific sustainability programmes. The verified compliance with national legal requirements or the certification to certain international or company standards, as well as the external verification of farm self-assessments under the FSA in conformity with the rules of the SAI Implementation Framework, enable agricultural producers and the processing industry to advertise their SAI sustainability status.
Details on the activities for the implementation of AGRANA's principles for the procurement of agricultural raw materials and intermediate products and regarding the SAI sustainability status in the Sugar, Starch and Fruit segments are presented in the respective segment reports (see pages 27, 34 and 40ff.).
Awareness-building and ongoing training are basic building blocks of AGRANA's collaboration with its approximately 9,700 contract growers. Besides many training measures in all segments, AGRANA therefore twice annually holds BETAEXPO, featuring Austria's largest field of demonstration plantings of AGRANA raw material crops. The June 2017 BETAEXPO field symposium on crop protection, which reflected the political debate over the use of specific groups of crop protection agents, attracted about 2,000 visitors to the event site on the grounds of the AGRANA sugar factory in Tulln, Austria. Next to the panel discussion
on crop protection, the BETAEXPO symposium offered plenty of information for forward-thinking farmers and anyone interested in agriculture, on the subjects of crop breeding, crop protection, fertilising and machinery. A lecture series presented by experts showcased modern agriculture, rounded out with equipment demonstrations by well-known manufacturers.
In the run-up to BETAEXPO in June 2017, AGRANA publicly recognised outstanding raw material suppliers with the AGRANA Sustainability Award 2017 for especially sustainable farming operations in the categories of sugar beet, potato, corn (maize) and, for the first time, internationally in the categories of fruit and juice.
The BETAEXPO family day in September 2017 was attended by more than 4,000 farmers and visitors with an interest in agriculture or in Tulln as an industry location. In live demonstrations of farm equipment, they were able to learn about the latest agricultural insights and receive practical tips on harvest technology from experts, gain an inside view of sugar production at the open house of the Tulln sugar plant and thus follow the process from beet processing and sugar crystallisation all the way to the finished product, "Wiener Zucker".
Biodiversity is important to AGRANA especially in its upstream value chain, i.e., in the farming landscape. In this annual report, to the extent possible, biodiversity aspects of raw material procurement from contract growers are published in the respective business segment's section of the report. Additionally, once a year AGRANA evaluates the biodiversity or conservation value of the local ecosystem at its own production sites, based on local legal requirements and criteria of different conservation groups. Although none of the production sites within the GRI reporting boundaries (see page 9) are located in a nature reserve or area with high biodiversity value, AGRANA also carries out some projects at its business locations to protect or increase species diversity. Thus, since the previous year, AGRANA maintains a bee conservation project, which involved installing bee hives at all Austrian locations of the Group. For further projects, see pages 30, 71 and 78.
Due to limited data availability and reliability, data on water use in the upstream value chain (i.e., in the production of agricultural raw materials) do not exist for all raw materials used worldwide and are therefore not reported.
The basis for AGRANA's management of environmental and energy matters is its environmental policy, which follows the precautionary approach and underpins the avoidance or reduction of negative economic, environmental and social impacts of AGRANA's production activities. The environmental policy also provides a grievance mechanism.
The processing of agricultural raw materials, which is especially energy-intensive in the Sugar and Starch segments, entails economic risks for AGRANA, such as potential scenarios like the prohibition of some or all fossil fuels by law, the loss of operating licences, and a lack of affordable renewable sources of energy. It also holds environmental and social risks through greenhouse gases emitted during production and their impacts, such as health hazards or commodity scarcity as a result of increasing extreme weather conditions, i.e., of climate change. These potential impacts are within AGRANA's direct control. AGRANA is committed to operating responsibly and strives to minimise or progressively further reduce actual negative impacts to the extent possible.
In keeping with its environmental policy, AGRANA's goal is therefore to use low-emission sources of energy at all of its production sites, and to use them as efficiently as possible. To achieve this, AGRANA began in 2014 to introduce energy management systems. The energy management systems of 50% of all AGRANA production sites within the GRI reporting boundaries (see page 9) are certified to ISO 50001.
All AGRANA segments have energy targets, relevant to their business activity, with a current target period up to and including the 2020|21 financial year. The progress towards goals to date is presented in the respective segment reports (see pages 28f., 35 and 42f.).
AGRANA's reporting of energy consumption and emissions is confined to specific values per tonne of product output (core products and by-products) in its own production operations, and is limited to Scope 1 (direct energy consumption and emissions) and Scope 2 (indirect energy consumption and emissions).
Since as long ago as 2008, AGRANA calculates carbon footprints for a representative selection of its products. However, as the EU to date does not have a binding norm for the methodology for calculating the CO2 footprint of foods and food ingredients such as sugar, starch, fruit preparations and fruit juice concentrates, AGRANA elects
not to publish results. For example, the carbon footprint of sugar can vary by plus or minus 50% depending on the calculation method. Nonetheless, the European Association of Sugar Manufacturers (CEFS), based on its calculations, cites a footprint range of 242 to 771 grammes of CO2 equivalent per kilogramme of beet sugar.
For the carbon footprint of bioethanol, however, the application of the EU energy allocation method is mandatory in documenting the energy consumption reductions from biogenic fuels targeted under the EU Renewable Energy Directive (2009/28/EC), which supports the use of energy from renewable resources. The carbon footprint of bioethanol is therefore reported (on AGRANA's website).
Water, the most important resource globally for the world's population, is one of many inputs in the production processes of the AGRANA Group. General water scarcity and the withdrawal of water in water-stressed regions, as well as poor water quality and too high a temperature of discharged wastewater, are frequently a significant economic, environmental and social risk. Although scarcity of good-quality water is not an issue at AGRANA's production sites, the sustainable, responsible use and discharge of water, in compliance with all legal standards, is a major aspect of the AGRANA environmental policy. In its quest for efficiency, AGRANA utilises the water contained in the agricultural raw materials for its processes.
AGRANA reports water and wastewater figures solely for its principal business, the processing of agricultural raw materials in its production plants, on a specific basis per tonne of product (core and by-products), as absolute values do not provide a meaningful indication of water use efficiency, owing to the fact that processing volumes fluctuate from year to year. Some AGRANA segments have water-related targets, relevant to their business activity, for the target period up to and including the 2020|21 financial year. The progress towards goals to date is presented in the respective segment reports (see pages 27 and 29, 34, 40 and 43).
The economic, environmental and social risks, and impacts, of waste generation and disposal in AGRANA's business activities are limited thanks to the Group's policy and practice of minimising waste through the virtually complete utilisation of raw materials. For AGRANA as an agricultural processor, its raw materials are far too valuable not to be utilised to the fullest. The Group-wide principle of complete utilisation is entrenched in the environmental
policy and 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 declared as waste for regulatory reporting purposes, solely to comply with the local regulatory regimes. Since the 2015|16 financial year, AGRANA no longer reports these as waste in the annual report, as they are directly used as valuable feedstuffs in animal husbandry or as fertilisers in crop cultivation.
Measured against total product output, hazardous waste in 2017|18 only amounted to 0.01%, or about 100 grammes per tonne of product (core and by-products). In accordance with legal requirements, this material was collected and transferred to qualified waste disposal providers for appropriate treatment.
Although the transport of raw materials and products only represents a comparatively low share of mostly less than 10% of the carbon footprint of AGRANA products (depending on the calculation method and country), the Group strives to make transport activities as sustainable as infrastructure and economics will allow.
Thus, the long-term modal split for inbound and outbound logistics in the AGRANA Group, based on tonnekilometres, is approximately 70% road, 25% rail and 5% water.
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. By complying with its Code of Conduct, the Group expects to avoid or minimise economic risks for AGRANA (for example, difficulties in employee recruitment, inefficient operating processes, strikes and reputational damage) and social risks for employees (e.g., a work environment that is unsafe, hazardous to health, discriminatory or unfair).
The employment relationships of about 73% of AGRANA employees worldwide fall under collective agreements. The interests of approximately 78% of staff are represented by a local employee council or union representative. At those sites where neither of these forms of representation exists, AGRANA has set up complaint boxes as a formal channel available to all employees for reporting grievances regarding labour practices or human rights. A process is in place for the prompt and fair handling of the complaints received.
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, which focuses primarily on working conditions, workplace safety and human rights (including questions on child labour and forced labour). In the 2017|18 financial year, all Sugar segment plants within the GRI reporting boundaries (see page 9) and all Austrian manufacturing sites of the Starch segment had their self-assessments verified through so-called "4-Pillar SEDEX Members Ethical Trade Audits" (SMETA) performed by independent third parties. Overall, at the balance sheet date, about 58% of the AGRANA production sites within the GRI reporting boundaries had valid SMETA or comparable social audits. No significant violations were found. The SMETA audit reports on the AGRANA plants are available to SEDEX members on the organisation's online platform.
The areas of focus in 2017|18 regarding working conditions and human rights in relation to AGRANA employees are discussed in the section "AGRANA's people" (see from page 48).
The risks, management approaches and activities in 2017|18 surrounding compliance and business conduct, anti-corruption and anti-bribery are presented in the compliance section (see annual report 2017|18 from page 27) of the corporate governance report.
The foremost aim of the AGRANA quality policy is to produce foods and feedstuffs that meet customer requirements and are safe for consumption. For AGRANA, adhering to the many applicable national and international regulations for product safety at all production sites worldwide is not just a legal obligation but also a cornerstone of the Group's social responsibility and essential to sustainable development.
Foods manufactured at facilities within the European Union meet the requirements of the EU's General Food Law Regulation (EC) No 178/2002, as amended. This regulation lays down the general principles and requirements of food law, establishes the European Food Safety Authority and sets out procedures concerning food safety. In addition, AGRANA is guided by the international minimum standards for food safety, such as the Codex Alimentarius (the food code of the Food and Agriculture Organisation of the World Health Organisation). In the Codex Alimentarius, the General Principles of Food Hygiene introduce the so-called Hazard Analysis and Critical Control Point system. The HACCP system permits the analysis of potential hazards to human health, whether chemical, physical or microbial in nature. The principle of an HACCP system is also found, for example, as a legal requirement in the EU hygiene regulation (Reg. (EC) No 852/2005). AGRANA has already been using HACCP systems in its plants for many years, adapted to the particular production processes. The introduction and especially the regular auditing of an HACCP system ensure that only safe products leave the facility.
Animal feeds produced at facilities in the EU meet the requirements of the EU's General Food Law Regulation No 178/2002, its Regulation No 767/2009 on bringing to market and using feeds, and Regulation No 183/2005 on feed hygiene. Here too, HACCP systems are integral to ensuring product safety.
In its assurance of food and feed safety, AGRANA goes beyond the legal requirements and has implemented internationally recognised standards of product safety, under which it is externally certified.
The AGRANA quality management system seeks to identify and optimally fulfil the expectations and requirements of customers and other interested parties. It is based on the principles of ISO 9001, the international norm for quality management systems. AGRANA's quality management system is supplemented by numerous certifications for food safety and food defence. The most important standards in this respect globally for AGRANA are FSSC 22000 (Food Safety System Certification), ISO 22000 and IFS (International Food Standard). Depending on the country or region and customer demand, additional certifications are also offered, such as Organic, GMO-Free, Kosher (following Jewish dietary laws) and Halal (adhering to Islamic dietary laws). The key standards for feed safety are GMP Feed and the EFISC Feed Standard. Overall in the 2017|18 financial year, 100% of AGRANA's feed production sites held certifications to at least one of these standards, or to the locally relevant international ones.
The hygiene and quality standards of the foods and feeds produced by AGRANA are continually raised further through external certifications, customer and supplier audits and an internal audit system. No product recalls were required in 2017|18.
Disseminating knowledge on nutrition and health In 2017|18, sugar continued to encounter a negative perception in the public debate and in media reporting related to nutrition and health. The impression is created that sugar is responsible for most of the ills of our modern society, and none more so than obesity.
Thus, in the past several years, eight EU countries have introduced taxes on sugar-containing beverages, mostly by raising the related consumption taxes. Worldwide as well, some industrialised nations and emerging-market countries have taken comparable measures.
Prompted by the recommendation of the World Health Organisation (WHO) for the proportion of sugar in daily energy intake, there is growing pressure on the European Commission and the EU member states to act regarding product reformulations. In 2016 the EU member states agreed that by 2020, relative to the base year 2015, the amount of so-called added sugars in the total food supply is to be reduced by 10%. However, as it has turned out, a sugar tax does not make people slim. Weight gain in healthy individuals is simple to explain: More calories are taken in than expended. Whether these calories come from fat, protein, sugar or other carbohydrates makes no difference to the energy balance. This is also why the reformulation efforts that aim to reduce products' sugar content in favour of other ingredients will not lead to a breakthrough in the fight against obesity: Most such reformulated products – contrary to consumers' assumption – are not significantly lower in calories.
AGRANA therefore works to raise the level of public knowledge about nutrition in general, the importance of lifestyle to health, and the properties of sugar.
In the 2017|18 financial year, AGRANA supported initiatives that communicate nutritional and health knowledge, such as Austria's Forum Health Today ("Forum Ernährung heute"), the Austrian Nutrition Society ("Österreichische Gesellschaft für Ernährung") and the platform "Land Grows Life" ("Land schafft Leben").
Through its sponsorship of SK Rapid, a Vienna football club, AGRANA wants to motivate the public to adopt a healthy, active lifestyle that includes more exercise in daily life. AGRANA sees young people as a particularly important audience in this regard, as the foundations for a healthy
way of life are laid at an early age. In the year, AGRANA thus supported numerous events of SK Rapid for children and youth, like "Greenie Day" (when the professional team plays with the kids' teams, in the club's green uniforms), the Wiener Zucker Kids Run, the Wiener Zucker U9 tournament and the youth camps of SK Rapid Vienna.
AGRANA also supported the Charity Walk of the Austrian umbrella organisation for environmental protection, which links physical exercise in nature to a donation that will benefit local biodiversity.
In parallel with this, AGRANA helps foster its own employees' knowledge and awareness of balanced nutrition and a healthy lifestyle through many activities (see the section "AGRANA's people" from page 48).
At the end of the 2017|18 financial year a customer satisfaction survey was conducted in the fruit preparations business. For the first time the survey was carried out not just online but also through telephone interviews. The results were not yet available at the reporting date. The next global survey of the customers of all business segments is planned for March 2019.
AGRANA holds the necessary certifications in its plants and supply chain to be able to fill customer needs for organically made foods, feeds and other products.
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.
Memberships in sustainability-related initiatives and in industry associations and advocacy groups Beyond striving to maximise the environmental and social sustainability of its core business activities, AGRANA is also engaged as a responsible corporate citizen in its host communities. As part of this engagement, AGRANA is involved in various sustainability-related initiatives and in industry associations and advocacy groups.
As in the previous years, in 2017|18 the AGRANA Group supported a large number of social projects in the communities where its companies operate, and many cultural events in Austria.
| 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 AUSTRIA JUICE GmbH and some sites in Fruit segment |
2013 | Aim: Supplier assessment on environmental and social criteria along their entire value chain; Members: about 120 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 from the entire 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. |
| 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 |
The consolidated financial statements for the 2017|18 financial year (the twelve months ended 28 February 2018) were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
In the 2017|18 financial year the Group saw no material changes in the scope of consolidation: In total in the consolidated financial statements, 62 companies were fully consolidated (28 February 2017 year-end: 60 companies) and 13 companies were accounted for using the equity method (28 February 2017: 12 companies).
| Consolidated income statement (condensed) |
2017 18 | 2016 17 | Change % / pp |
|
|---|---|---|---|---|
| Revenue | €000 | 2,566,317 | 2,561,296 | +0.2% |
| EBITDA1 | €000 | 254,159 | 235,212 | +8.1% |
| Operating profit before exceptional items and results of |
||||
| equity-accounted joint ventures | €000 | 164,145 | 150,815 | +8.8% |
| Share of results of | ||||
| equity-accounted joint ventures | €000 | 29,395 | 30,589 | –3.9% |
| Exceptional items | €000 | (2,912) | (9,037) | +67.8% |
| Operating profit [EBIT]² | €000 | 190,628 | 172,367 | +10.6% |
| EBIT margin | % | 7.4 | 6.7 | +0.7 pp |
| Net financial items | €000 | (14,470) | (17,879) | +19.1% |
| Income tax expense | €000 | (33,513) | (36,633) | +8.5% |
| Profit for the period | €000 | 142,645 | 117,855 | +21.0% |
| Earnings per share | € | 8.97 | 7.13 | +25.8% |
The AGRANA Group's revenue in the 2017|18 financial year was € 2,566.3 million and thus remained steady on balance at the prior-year level. While revenue in the Sugar segment, at € 652.6 million, showed a slight sugar-price-related decrease of 2.9%, revenue in the Starch segment rose somewhat, by 2.5% to € 752.3 million, thanks in part to higher volumes of core products. Fruit segment revenue, at € 1,161.4 million (up 0.5%) was closely in line with the prior year.
Revenue by segment in 2017|18
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.
Subsidiaries based in Austria generated 51.3% of Group revenue.
Operating profit (EBIT), at € 190.6 million, grew by a significant 10.6% from the prior year. EBIT in the Sugar segment improved substantially, to € 34.8 million (prior year: € 24.4 million), thanks largely to higher selling prices in the first six months than one year earlier. The largest EBIT contribution (of € 80.2 million) was achieved in the Starch segment, where this earnings measure improved further (by 5.2%) from the prior year's record level, buoyed mainly by a positive trajectory in the ethanol business. In the Fruit segment, EBIT increased by 5.3% to € 75.6 million despite a reduced contribution from the fruit juice concentrate business. 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 amounted to a net expense of € 14.5 million in the 2017|18 financial year (prior year: net expense of € 17.9 million), an improvement driven by two developments. First, an optimisation of the credit and interest rate structure reduced the interest expense by € 2.3 million. Second, the prior year included a non-recurring expense for an impairment charge of € 4.8 million on a current finance receivable in Ukraine in the Fruit segment. Compared to this base, the year under review saw an improvement of € 4.3 million in other financial items. Currency translation differences (including currency derivatives) deteriorated by about € 2.7 million, due primarily to negative movements in foreign currency financings in Argentina and Brazil (euro and US dollar financings).
| Net financial items | 2017 18 | 2016 17 | Change | |
|---|---|---|---|---|
| % | ||||
| Net interest (expense) | €000 | (7,832) | (10,152) | +22.9% |
| Currency translation differences | €000 | (3,842) | (1,160) | –231.2% |
| Share of results of non-consolidated | ||||
| subsidiaries and outside companies | €000 | 34 | 565 | –94.0% |
| Other financial items | €000 | (2,830) | (7,132) | +60.3% |
| Total | €000 | (14,470) | (17,879) | +19.1% |
Profit before tax increased from the prior year's € 154.5 million to € 176.2 million. After an income tax expense of € 33.5 million based on a tax rate of 19.0% (prior year: 23.7%), the Group's profit for the period was € 142.6 million (prior year: € 117.9 million). Profit for the period attributable to shareholders of AGRANA was € 140.1 million (prior year: € 111.3 million); earnings per share increased to € 8.97 (prior year: € 7.13).
In 2017|18, AGRANA invested a total of € 140.9 million, or € 26.2 million more than in the prior year. Purchases of property, plant and equipment and intangibles were 56.5% higher than depreciation (prior year: 35.9% higher), with the following distribution by business segment:
| Investment1 | 2017 18 | 2016 17 | Change | |
|---|---|---|---|---|
| % / pp | ||||
| Sugar segment | €000 | 32,084 | 23,259 | +37.9% |
| Starch segment | €000 | 59,427 | 57,577 | +3.2% |
| Fruit segment | €000 | 49,356 | 33,822 | +45.9% |
| Group | €000 | 140,867 | 114,658 | +22.9% |
| Depreciation, amortisation | ||||
| and impairment | €000 | 90,014 | 84,397 | +6.7% |
| Investment coverage | % | 156.5 | 135.9 | +20.6 pp |
The investment in the Sugar segment focused mainly on the improvement of product quality and energy efficiency; in the Fruit segment it centred on capacity expansions and plant modernisation. Bringing the capacity expansion in Aschach, Austria, on stream was the largest project in the Starch segment. The key projects in the individual business segments are described in detail in the segment reports.
| Consolidated cash flow statement | 2017 18 | 2016 17 | Change | |
|---|---|---|---|---|
| (condensed) | % | |||
| Operating cash flow before | ||||
| changes in working capital | €000 | 302,745 | 258,020 | +17.3% |
| Changes in working capital | €000 | (43,121) | 31,780 | –235.7% |
| Interest received and paid and | ||||
| income tax paid, net | €000 | (45,762) | (34,015) | –34.5% |
| Net cash from operating activities | €000 | 213,862 | 255,785 | –16.4% |
| Net cash (used in) investing activities | €000 | (133,346) | (171,530) | +22.3% |
| Net cash (used in)/from financing activities | €000 | (153,693) | 9,330 | –1,747.3% |
| Net (decrease)/increase | ||||
| in cash and cash equivalents | €000 | (73,177) | 93,585 | –178.2% |
| Effects of movements in foreign exchange | ||||
| rates on cash and cash equivalents | €000 | (4,291) | 230 | –1,965.7% |
| Valuation-related other changes | ||||
| in cash and cash equivalents | €000 | 0 | (4,761) | +100.0% |
| Cash and cash equivalents | ||||
| at beginning of period | €000 | 198,429 | 109,375 | +81.4% |
| Cash and cash equivalents | ||||
| at end of period | €000 | 120,961 | 198,429 | –39.0% |
| Free cash flow1 | €000 | 80,516 | 84,255 | –4.4% |
Operating cash flow before changes in working capital was up € 44.7 million year-on-year at a new total of € 302.7 million. After an increase of € 43.1 million in working capital (prior year: decrease of € 31.8 million) and a higher income tax expense, net cash from operating activities decreased to € 213.9 million (prior year: € 255.8 million). Net cash used in investing activities was € 133.3 million. This significant decrease from one year earlier came despite higher outflows for purchases of property, plant and equipment and intangibles, and is explained by the prior year's expenses for the acquisition in Argentina (prior year: net cash use of € 171.5 million in investing activities). Net cash use of € 153.7 million in financing activities reflected the dividend payment and the repayment of borrowings. The prior year's net cash of € 9.3 million from financing activities had resulted mainly from the capital increase in February 2017. Free cash flow in the year under review eased by 4.4% year-on-year.
| Consolidated balance sheet | 28 Feb | 28 Feb | Change | |
|---|---|---|---|---|
| (condensed) | 2018 | 2017 | % / pp | |
| Non-current assets | €000 | 1,161,001 | 1,135,297 | +2.3% |
| Current assets | €000 | 1,195,420 | 1,346,139 | –11.2% |
| Total assets | €000 | 2,356,421 | 2,481,436 | –5.0% |
| Equity | €000 | 1,453,997 | 1,411,888 | +3.0% |
| Non-current liabilities | €000 | 419,427 | 296,635 | +41.4% |
| Current liabilities | €000 | 482,997 | 772,913 | –37.5% |
| Total equity and liabilities | €000 | 2,356,421 | 2,481,436 | –5.0% |
| Net debt | €000 | 232,493 | 239,878 | –3.1% |
| Gearing ratio2 | % | 16.0 | 17.0 | –1.0 pp |
| Equity ratio | % | 61.7 | 56.9 | +4.8 pp |
Total assets at 28 February 2018 were € 2,356.4 million, a decrease of € 125.0 million from the year-earlier level.
1 Total of net cash from operating activities and net cash used in investing activities.
2 Ratio of net debt to total equity.
An expansion of € 25.7 million in non-current assets was driven especially by investment in property, plant and equipment that exceeded depreciation. Inventories declined moderately for volume and price reasons, by € 41.5 million; trade receivables also showed a moderate reduction, of € 27.0 million. In combination with markedly lower cash and cash equivalents (down € 77.5 million), this led to a significant decrease in current assets.
AGRANA's equity ratio of 61.7% represented an improvement of 4.8 percentage points from the year-earlier level of 56.9%. On the other side of the balance sheet, non-current liabilities rose significantly, due primarily to an increase of € 130.1 million in long-term borrowings. Current liabilities showed a pronounced decrease, reflecting among other factors the reduction of current borrowings (down € 215.1 million) and a drop of € 51.8 million in trade payables.
Net debt as of 28 February 2018, at € 232.5 million, was down € 7.4 million from the 2016|17 year-end level. The gearing ratio thus amounted to 16.0% at the balance sheet date (28 February 2017: 17.0%).
Net debt and gearing ratio
In December 2017 two long-term loans of € 50 million each were raised under the TLTRO1 programme of the European Central Bank. The loan term is five years (repayable at maturity) with a fixed interest rate of 0.7%. The proceeds of these loans were used to fund general business purposes and for the repayment of a matured intragroup loan from Südzucker AG, Mannheim, Germany.
The Sugar segment's revenue in 2017|18, at € 652.6 million, was off 2.9% from the year before. The decrease resulted in part from a slight reduction in average sugar selling prices for the year. Until the end of September, average sugar prices in 2017 were still significantly higher than one year earlier. Since the new, 2017|18 sugar marketing year (which began on 1 October 2017 and runs to 30 September 2018), prices plummeted both for retail sugar and for sugar sold to industrial customers. Revenue from by-products rose moderately, driven primarily by a higher sales volume of dried beet pulp, and revenue with ancillary goods (INSTANTINA products, seed, services, etc.) increased slightly. The Sugar segment accounted for 25.4% of Group revenue (prior year: 26.2%).
EBIT grew from € 24.4 million to € 34.8 million, still benefiting in the first six months from an environment of higher sales price compared to the year-earlier period. Since the financial third quarter – the first to fall into the new 2017|18 sugar marketing year – the earnings measure "operating profit before exceptional items and results of equity-accounted joint ventures" declined significantly. Exceptional items in 2017|18 amounted to a net expense of € 2.9 million and stemmed largely from costs of restructuring (prior year: net expense of € 9.0 million, on negative one-time effects in Romania).
Further details on the results in the Sugar business are given in the segment report from page 24.
Revenue in the Starch segment in 2017|18 was € 752.3 million, up slightly by 2.5% from the previous year. Key positive drivers were higher sales volumes of starches (particularly organic and specialty grades) and saccharification products, and higher bioethanol prices in the first nine months, than one year earlier. The significant decrease in reselling volume of feedstuffs caused a moderate reduction in by-product revenue compared to the prior year, despite higher in-house production. The Starch segment accounted for 29.3% of the Group's revenue (prior year: 28.7%).
The segment's EBIT of € 80.2 million surpassed the prior year's record result by 5.2% and translated into an EBIT margin of 10.7% (prior year: 10.4%). Raw material prices were in line with the prior year. While the start-up costs for the commissioning of the facility expansion in Aschach, Austria (primarily as a result of increased staff costs and depreciation) in themselves detracted from earnings, lower energy prices and higher annual average ethanol quotations allowed EBIT improvements to be achieved in the Starch segment. As well, there was a moderate increase in the profit contribution from the equity-accounted HUNGRANA facility, due largely to the year-on-year increase in sales prices of bioethanol.
Further details on the results of the Starch business are provided in the segment report from page 31.
Fruit segment revenue in 2017|18 was € 1,161.4 million (up 0.5%), or very close to the year-earlier level. In the fruit preparations business, a small increase in sales volumes together with stable selling prices added up to slight revenue growth. In the fruit juice concentrate activities, revenue decreased slightly as a result partly of lower concentrate prices for product from the 2016 crop compared to 2015. The Fruit segment was responsible for 45.3% of Group revenue (prior year: 45.1%).
EBIT reached a new high of € 75.6 million, rising by 5.3% from the prior year. While the fruit preparations activities generated significant earnings growth, EBIT in the fruit juice concentrate business declined significantly in the third quarter as a result of underutilised capacity amid lower availability of apples.
Further details on the results in the Fruit business are supplied in the segment report from page 38.
No significant events occurred after the balance sheet date of 28 February 2018 that had a material effect on AGRANA's financial position, results of operations or cash flows.
Marketing relationship B2B and B2C
Sugars and sugar specialty products, by-products (feedstuffs and fertilisers)
Sugar beet, and raw sugar from sugar cane
Austria, Hungary, Romania, Czech Republic, Slovakia, Bosnia and Herzegovina (Western Balkans region), Bulgaria
Downstream manufacturers (particularly confectionery, beverage and fermentation industries), food resellers (for consumer products)
High product quality standards; product offering tailored to customer needs
Sugar: Industrial customers Sugar: Resellers By-products (molasses, beet pulp, etc.)
Others (products of INSTANTINA, seed, services, etc.)
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 and 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.
| Sugar segment | 2017 18 | 2016 17 | Change | |
|---|---|---|---|---|
| % / pp | ||||
| Total revenue | €000 | 730,378 | 748,151 | –2.4% |
| Inter-segment revenue | €000 | (77,818) | (76,230) | –2.1% |
| Revenue | €000 | 652,560 | 671,921 | –2.9% |
| EBITDA1 | €000 | 64,455 | 55,188 | +16.8% |
| Operating profit before | ||||
| exceptional items and results of | ||||
| equity-accounted joint ventures | €000 | 38,762 | 30,983 | +25.1% |
| Share of results of | ||||
| equity-accounted joint ventures | €000 | (1,091) | 2,442 | –144.7% |
| Exceptional items | €000 | (2,912) | (9,037) | +67.8% |
| Operating profit [EBIT]² | €000 | 34,759 | 24,388 | +42.5% |
| EBIT margin | % | 5.3 | 3.6 | +1.7 pp |
| Investment3 | €000 | 32,084 | 23,259 | +37.9% |
| Number of employees (FTE)4 | 2,109 | 2,107 | +0.1% |
The overall sales volume of sugar products decreased slightly in 2017|18 compared to the prior year, with differences between markets. While sales quantities with the reseller market rose somewhat, volumes with the sugar-using industry were off. Export volumes – sales both within and outside the EU – fell short of the prior year's level.
Sugar revenue was below the value of the prior year, which was partly explained by the lower average sales prices in the year under review. The sugar price reduction was particularly noticeable in prices with wholesalers and retailers in the Eastern European countries; in Austria the prior-year levels were largely maintained.
The earnings growth was driven predominantly by higher sugar sales prices in the first seven months of the year compared to the same period one year earlier. Since the financial third quarter – the first to fall into the new 2017|18 sugar marketing year which began 1 October 2017 – operating profitability in terms of the earnings measure "operating profit before exceptional items and results of equityaccounted joint ventures" declined significantly.
The result of the AGRANA-STUDEN group, which is included in the consolidated financial statements by the equity method of accounting, had a negative effect on the Sugar segment's EBIT in 2017|18. The reduction of € 3.5 million in the earnings contribution compared to the prior year was attributable to the end of the sugar quotas and the resulting negative impacts for sugar refining operations in the Western Balkans, as lower beet sugar prices led to measures such as the placing of the AGRANA-STUDEN refinery in Bosnia and Herzegovina on stand-by at the beginning of November 2017.
The net exceptional items expense of € 2.9 million in the 2017|18 financial year resulted largely from restructuring costs of € 4.1 million, which were partly offset by one-off income of € 1.9 million from the refunding of excess amounts of sugar production levies collected by the EU in the 1999|00 and 2000|01 sugar marketing years. In the prior year, the net exceptional items expense of € 9.0 million represented tax liabilities of € 11.5 million in connection with a tax audit in Romania, the creation of a provision of € 1.5 million for a legal dispute in Romania, and the release of a € 4.0 million provision for a settled legal dispute in the Czech Republic.
For the end of the 2017|18 sugar marketing year (SMY, 1 October 2017 to 30 September 2018) the analytics firm F.O. Licht in its estimate of 23 January 2018 for the world sugar balance is forecasting a production surplus, coming after two years of deficits. The forecast calls for a production increase to 189.7 million tonnes (SMY 2016|17: 179.5 million tonnes) which, despite predicted further growth in consumption to 183.9 million tonnes (SMY 2016|17: 180.7 million tonnes), is to lead to an expansion in global sugar stocks to 71.1 million tonnes (SMY 2016|17: 67.2 million tonnes).
| World sugar balance1 | 2017 18 | 2016 17 | 2015 16 |
|---|---|---|---|
| Million tonnes, except % | |||
| Opening stocks | 67.2 | 71.6 | 80.7 |
| Production | 189.7 | 179.5 | 174.2 |
| Consumption | (183.9) | (180.7) | (180.1) |
| Net exports/imports | (1.9) | (3.2) | (3.2) |
| Closing stocks | 71.1 | 67.2 | 71.6 |
| In % of consumption | 38.7 | 37.2 | 39.8 |
While the very volatile world market prices for sugar in the 2016|17 financial year still saw a four-year high in September 2016 for white sugar at US\$ 612.0 per tonne, and in October 2016 for raw sugar at US\$ 524.9 per tonne, the following months brought continuing highly volatile quotations, with a declining trend that accelerated further in the course of the 2017|18 financial year. One of the main reasons for this is the latest set of estimates for the global sugar surplus in SMY 2017|18, which is driven partly by the good to very good harvests in major beet and cane production regions such as the EU, India and other Asian countries.
For 2018, although Brazil is expected to use more sugar cane for ethanol production than before, analysts predict significant growth in global sugar output, reflecting very good crop expectations in India and Thailand and continuing high beet sugar production in Europe. The actual extent of the expected global production surplus will very much depend on developments in Brazil. The movements in the Brazilian real, especially in connection with the 2018 presidential elections, and the currency's resulting effect on the relative production of sugar versus ethanol will represent another important factor.
At the end of the reporting period (28 February 2018), white sugar quoted at US\$ 361.3 per tonne and raw sugar at US\$ 297.2.
The first predictions in May 2017 for the 2017|18 sugar beet harvest already estimated a 16% increase in planting area in Europe. Ultimately, the 2017|18 campaign brought an increase of 18% in the area planted to sugar beet. Favourable weather during the final growth stage of the sugar beet led to a harvest with an average yield of 76.7 tonnes per hectare, which was 6.7% above the five-
year average. The European Commission is forecasting sugar production in the EU for SMY 2017|18 at about 20.6 million tonnes (prior SMY: 17.3 million tonnes)1. In Austria, AGRANA's main beet production region, the cultivation area of about 41,400 hectares yielded an average of around 72 tonnes of beet per hectare.
According to the official sugar price reporting of the EU, prices in the past months were on a clear downward trend; while the average price of sugar in the EU in September 2017 was still € 490 per tonne, in January 2018 it was only € 374 per tonne.
Currently the sugar imports under the EPA/EBA2 agreements and the treaty with the ACP3 countries in the ongoing 2017|18 sugar marketing year are also far below the volumes of the prior year. Applications for sugar import licences are subdued as well. These developments are related to the high EU production volume and the decline in EU prices. The EU is thus developing from a net importer into a net exporter.
The high sugar selling prices in the first seven months of the financial year were still due largely to the low European sugar inventories prevailing until the start of the new 2017 harvest and to the initially still high world market prices in the first half of 2017|18.
Sugar sales in the last five months of the year were defined by the renegotiated prices with customers in industry and resellers. The fact that the sugar quota has expired, combined with the low world market prices and expected high sugar production, confronts the entire European sugar industry – as well as its customers – with new challenges.
The sugar prices contractually set for SMY 2017|18 are now significantly lower than for the previous year.
Even after the expiration of the European quota rules, AGRANA firmly intends to cement and where possible expand its existing market shares with industrial customers and resellers. The product and brand strategy adopted was validated by a positive overall business performance in the first three quarters of 2017|18, even if sales prices came under pressure since autumn 2017.
Especially in the resellers segment and in exports to markets outside the EU, growth in sales quantities was achieved relative to the prior year. In sales to resellers, this positive trend across all countries was due primarily to an increase in the use of sugar for fruit preserving and for baking. Overall, the sales volume of sugar specialties and certified organic sugar is rising, with further potential for growth especially in Eastern Europe.
Since 1 October 2017 the European sugar industry is operating in a new environment. The biggest changes are the end of the production quotas for sugar and isoglucose and the abolition of the minimum beet prices.
However, the use of contracts between the sugar industry and sugar beet growers remains a requirement. The European Commission also retains the option to apply exceptional measures in the event of crises. One of the instruments available to it for this purpose is governmentfunded private storage, through which the Commission can temporarily remove sugar from the market.
A key element of the liberalisation of the EU sugar market is that, since 1 October 2017, the European sugar manufacturers have unrestricted freedom to export their product.
Protective features remaining in place unchanged for imports to the EU from countries not party to preferential treaties are the duties of € 419 per tonne for white sugar and € 339 per tonne for raw sugar. The preferential agreements (for duty-free access) with the Least Developed Countries and the ACP Group of States remain intact, as do the duty-free or lower-duty preferential imports that are subject to volume limits.
The European Commission is currently negotiating the terms of a free trade agreement with the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay). The European beet farmers and sugar companies seek to prevent concessions by the EU to the Mercosur countries on sugar and products with a high sugar content, as Brazil already has extensive preferential access to the EU sugar market and the Brazilian government continues to intervene in the sugar policy of the world's largest sugar producer through a multitude of direct and indirect state subsidies. As a result of these subsidies, sugar from Austria and Europe suffers unfair competition from Brazilian sugar.
1 EU Sugar Balance, January 2018.
2 Economic Partnership Agreement / "Everything But Arms".
3 African, Caribbean and Pacific Group of States.
Sustainability in the Sugar segment
SAI FSA audits of contract beet production in 5 countries in 2017 confirmed gold or silver status for over 75% of all producers
Direct energy consumption of 2.49 GJ per tonne of product
Water consumption of 1.92 m³ per tonne of product
wsk.agrana.com/ en/sugar
The area of sugar beet fields harvested by AGRANA's approximately 6,900 contract beet farmers in SMY 2017|18 was about 96,300 hectares (prior SMY: about 93,200 hectares); almost 1,700 hectares of this (prior SMY: 1,300 hectares) represented organic production. From the organic acreage the Group produced around 9,000 tonnes of organic beet sugar (prior year: about 8,500 tonnes).
In many production regions the relatively low precipitation and very hot temperatures during the entire growing period did not allow the beet stocks to develop well. Not until autumn 2017 did the situation improve, thanks to cool weather and ample rain. In many regions the beet stocks recovered and exhibited superior growth until up to the harvest. Only in the eastern part of the Austrian production areas, in the whole Slovak cultivation region and those Hungarian areas bordering on Austria did the beet stocks remain sub-average. The crop was harvested under relatively good conditions, except for a brief interruption in September due to heavy precipitation. As a result of the weather conditions described, the mean sugar content of the beet, at 17.2%, was above average (prior year: 16.7%). The AGRANA Group processed about 6.2 million tonnes of beet, or approximately 0.5 million tonnes less than in the prior year despite a small increase in acreage.
AGRANA's seven beet sugar factories processed a combined daily average of about 51,500 tonnes of beet during the campaign (prior year: 49,400 tonnes). Over an average campaign length of 120 days (prior year: 136 days), the beet was used to produce approximately 941,000 tonnes of sugar (prior year: about 1 million tonnes). In the 2017|18 financial year AGRANA also refined approximately 200,100 tonnes of white sugar equivalent from raw sugar (prior year: 263,200 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. The Chain of Custody certificate, which confirms the adherence to high social and environmental standards in the entire value chain, entitles AGRANA's customers to display the Bonsucro logo on their products. Bonsucro is accorded gold status, the highest rating, by the benchmarking tool of the Sustainable Agriculture Initiative (SAI).
For beet purchasing, AGRANA follows a beet price arrangement with a variable price schedule tied to the sugar sales price.
The AGRANA principles for the procurement of agricultural raw materials and intermediate products stipulate the use of good agricultural practice (GAP) and fair working conditions. In accordance with these principles, the Sugar segment has elected to use the Farm Sustainability Assessment (FSA) of the Sustainable Agriculture Initiative (SAI) for documenting sustainable management for its sugar beet contract growers. For details on the SAI and FSA, see the section "Non-financial information statement under section 267a Austrian Commercial Code", page 10.
In the 2017|18 financial year the previously voluntary completion of the FSA questionnaire became mandatory for some contract suppliers. In accordance with the SAI FSA Implementation Framework published in June 2016, selected farmers in all five beet-growing countries (Austria, Czech Republic, Hungary, Romania, and Slovakia) participated in the mandatory FSA self-assessment and the external audits to SAI standards. Based on the results of the external verification, AGRANA's Sugar segment is entitled to claim gold or silver status under SAI standards for more than 75% of the statistical population of all sugar beet growers. AGRANA's minimum requirements are fulfilled by all contract beet growers; areas of potential for improvement identified by the audits are addressed through existing training programmes.
Building awareness of good agricultural practice
In June 2017 the annual BETAEXPO field symposium focused on crop protection and reflected the political debate over the use of specific groups of crop protection agents (see the section "Non-financial information statement under section 267a Austrian Commercial Code" from page 10). In the 2017|18 financial year, AGRANA also again carried out many awareness-building events under its "Mont Blanc" efficiency improvement programme, which aims to increase sugar yield per hectare and reduce production costs. In fields of contract farmers in Austria, AGRANA took about 1,100 soil samples for EUF analysis1, with the sample locations mapped by GPS, to support needs-appropriate, precision fertiliser planning. At the 85 demonstration farms across the entire beet-growing region of the AGRANA Group, 150 field tours and eight field days with a total of more than 7,500 participants were held during the growing season. Strong audience interest was also shown in a one-day organic agriculture conference for all organic crops processed by AGRANA, which was organised by the Sugar and Starch segments in collaboration with BIO Austria.
In 2017, about 5,000 hectares were greened in Austria with the catch-crop mix from Österreichische Rübensamenzucht GmbH, a not-for-profit subsidiary of AGRANA Zucker GmbH that makes GMO-free seed (largely produced in-house) available to the contract farmers. The catch-crop loosens the soil structure, mobilises nutrients, activates
soil fauna and improves field biodiversity. In addition, flowered areas of annuals and perennials were established; together, the flowering fields provide ideal forage for wild animals, offer honey plants for bees, and add to the beauty of the landscape.
Although the transport of raw materials and sugar products only represents a comparatively low 5% to 10% of the Sugar segment's carbon footprint (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 2017|18 processing season, about 36% of the beet was delivered to the sugar factories by rail, with the proportion highest in Hungary at about 65%.
Energy consumption 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 3.8% in the 2017|18 financial year compared to one year earlier. This reduction is due to improved modes of operation in the extraction stage and better waste heat recovery in low-temperature drying operations, especially at the sugar plant in Leopoldsdorf, Austria. At the factory in Tulln, Austria, the weather-in-
Average specific direct energy consumption in processing operations at AGRANA's sugar 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
Average specific emissions (from direct and indirect energy use) from processing operations at AGRANA's sugar plants2 In kg of CO2 equivalent per tonne of core and by-products
Kg of CO2 equivalent per tonne of core and by-products
1 EUF analysis of soil samples: Electro ultrafiltration is a laboratory method for the analysis of soil substrates
for their plant-available nutrients. The EUF method is employed for a practice-oriented fertiliser advisory system. 2 See GRI reporting boundaries, page 9.
duced bottlenecks in beet supply were made up for through increased processing of so-called thick juice, thus holding energy consumption per unit of product output at a good level. The Group's improved specific processing capacity of 4% as well has a positive effect on this energy indicator.
The Kaposvár sugar plant in Hungary generated about 31.3 million cubic metres of biogas from beet pulp in the 2017|18 financial year. This would have been sufficient to cover approximately 71% of the site's primary energy requirement for the 2017|18 beet campaign. About 9.2 million cubic metres of the biogas produced at the facility (containing about 54% methane) were refined by the biogas upgrading plant installed in autumn 2015 into approximately 5.2 million cubic metres (prior year: 4.8 million cubic metres) of biomethane (100% methane) for feeding into the local natural gas grid. The biomethane injected into the grid was equivalent to the annual heating requirement of about 2,090 single-family homes (prior year: 1,950 homes)
In the 2017|18 financial year the Sugar segment thus already met the target for 2020|21 of reducing direct energy consumption per tonne of product output to 2.49 GJ.
As a result of the lower steam requirement thanks to the efficiency measures taken, the cogeneration plants also generated less electric power. This lower internal generation of electricity had to be compensated for by higher external sourcing of power, which led to an increase of about 7.4% in specific indirect energy use per tonne of product compared to the prior year.
On balance, the average specific emissions from direct and indirect energy consumption per tonne of product thus decreased by about 3.5% from the prior year (see chart on page 28).
In the 2017|18 financial year the energy management systems of the Sugar segment's production sites already certified to ISO 50001 in 2014|15 were recertified. One hundred percent of the production sites within the GRI reporting boundaries (see page 9) thus hold a current certification.
The water required by a sugar factory is partly 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 beet cossettes and to transport and clean the beet. The water is continually cleaned and returned to the process cycle. In-house 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.
within the GRI reporting boundaries (see page 9)
| Sugar segment In m³ per tonne of core and by-products |
2017 18 | 2016 17 | 2015 16 |
|---|---|---|---|
| Water consumption | 2.14 | 1.61 | 1.78 |
| Water discharge | 3.19 | 2.78 | 2.81 |
The increase in average specific water consumption per tonne of product (core and by-products) of about 32.5% was attributable to a higher need for cooling water at several sites. As a result of the higher water consumption, the average specific amount of wastewater per tonne of product also rose, by 14.9%.
The absolute amount of waste eased by 3.5% from the previous year. The increase in hazardous waste resulted from the disposal, performed only on an irregular basis every few years, of materials such as used oil and used laboratory chemicals, railway ties, fibre cement panels, fluorescent tubes replaced by new lights, etc.
within the GRI reporting boundaries (see page 9)
| Sugar segment Tonnes, except percent |
2017 18 | 2016 17 | 2015 161 |
|---|---|---|---|
| Waste disposed | 72,513 | 75,049 | 163.068 |
| Of which hazardous waste | 198 | 153 | 170 |
| Waste | |||
| per tonne of product | 2.9% | 2.8% | 6.7% |
| Hazardous waste | |||
| per tonne of product | 0.008% | 0.006% | 0,007% |
| Non- | Non- | Non | |
| Waste disposed | hazardous | hazardous & | hazardous & |
| by disposal method | hazardous | hazardous | |
| Composting | 1,107 | 1,529 | 962 |
| Energy recovery | 710 | 486 | 442 |
| Reuse | 9,866 | 14,699 | 91,460 |
| Recycling | 4,045 | 6,126 | 19,781 |
| Landfill | 39,777 | 39,279 | 50,418 |
| Other | 16,809 | 12,930 | 5 |
The settling ponds on the grounds of AGRANA's former sugar plant (closed in 2006) in Hohenau an der March, Austria, were repurposed, working together with the AURING conservationist club. Located in an area of high diversity value identified under the RAMSAR Convention on Wetlands2, the ponds now serve as a staging area for water birds, most notably waders.
In summer 2017, AGRANA Zucker GmbH updated its sustainability data, first provided in 2014, for the purposes of EcoVadis, the international supplier evaluation platform, and improved its status from bronze to silver.
In the Sugar segment, AGRANA invested € 32.1 million during the 2017|18 financial year (prior year: € 23.3 million) in, among other things, product quality and energy efficiency. The most significant projects included the following:
1 The amounts of waste reported in 2015|16 were partly revised at the time according to the new definition of waste introduced for 2015|16. Complete application of the new definition only became possible for the 2016|17 financial year (see content boundaries of GRI reporting, page 12).
2 See glossary.
3 Within the GRI reporting boundaries (see page 9).
General division into food, non-food and feed sectors; native and modified starches, saccharification products, alcohols/bioethanol, by-products (feedstuffs and fertilisers)
processed Corn (maize), wheat, potatoes
Central and Eastern Europe, principally Austria and Germany; also specialty markets, e.g., in USA and UAE
Food sector: food industry; Non-food sector: paper, textile, construction chemicals, pharmaceutical, cosmetics and petroleum industries; Feed sector: feed industry
GMO-free and strong organic focus
The Starch segment includes the two fully consolidated companies AGRANA Stärke GmbH, Vienna – with the three Austrian plants in Aschach (corn starch), Gmünd (potato starch) and Pischelsdorf (integrated wheat starch and bioethanol plants) – and AGRANA TANDAREI S.r.l. with a plant in Romania (corn processing). AGRANA Stärke GmbH, together with the joint venture partner Archer Daniels Midland Company, Chicago, Illinois, USA, also manages and coordinates the joint ventures of the HUNGRANA group (one plant in Hungary, where starch and saccharification products and bioethanol are manufactured), which are included in the consolidated financial statements using the equity method of accounting.
| Starch segment | 2017 18 | 2016 17 | Change | |
|---|---|---|---|---|
| % / pp | ||||
| Total revenue | €000 | 762,308 | 744,194 | +2.4% |
| Inter-segment revenue | €000 | (9,993) | (10,272) | +2.7% |
| Revenue | €000 | 752,315 | 733,922 | +2.5% |
| EBITDA1 | €000 | 76,486 | 70,072 | +9.2% |
| Operating profit before | ||||
| exceptional items and results of | ||||
| equity-accounted joint ventures | €000 | 49,744 | 48,075 | +3.5% |
| Share of results of | ||||
| equity-accounted joint ventures | €000 | 30,486 | 28,147 | +8.3% |
| Operating profit [EBIT]² | €000 | 80,230 | 76,222 | +5.3% |
| EBIT margin | % | 10.7 | 10.4 | +0.3 pp |
| Investment3 | €000 | 59,427 | 57,577 | +3.2% |
| Number of employees (FTE)4 | 959 | 893 | +7.4% |
In the Starch segment, revenue grew by 2.5% in the 2017|18 financial year compared to the year before. In core products the revenue growth was about 6%, while revenue with by-products was down moderately, owing particularly to lower volumes in reselling of feedstuffs. The overall sales volume was approximately in line with the prior year, while the quantity of core products sold increased by nearly 4%. In large part the growth was based on higher production as a result of the commissioning of the plant expansion in Aschach, Austria (starch and saccharification products), but all other factories also ran at high levels of utilisation.
The market prices for native starches reflected the rise in demand; in modified starches the market position was expanded, especially in the areas of specialty and organic products. Since the liberalisation of the European sugar market at the beginning of October 2017, sugar prices in Europe are moving within a low band, owing to greater competition in the EU, beet sugar surpluses and low world market quotations. As a consequence, the starch-based saccharification products too are marked by mounting pressure on prices and margins. In the financial year under review, bioethanol quotations remained volatile but were above the prior year's levels on average. Prices for feedstuffs eased slightly.
Native and modified starches Saccharification products
Alcohol and ethanol
Regarding costs, grain prices moved sideways in the year. Savings were realised on energy prices. The higher average ethanol prices for the year also had a positive effect on earnings. The commissioning (the start of production) of the plant expansion in Aschach, Austria, led to one-time start-up costs. Specifically, the project-related investment and the additional personnel resulted in significantly increased plant depreciation and staff costs. The above factors were reflected in the growth rates of earnings: EBITDA was up by 9.2% to € 76.5 million; at the same time, operating profit before exceptional items and results of equity-accounted joint ventures increased by 3.5% to € 49.8 million.
In the 2017|18 financial year, revenue of the HUNGRANA group, the joint venture in Hungary, declined by 3.2%, even if price gains were achieved in the isoglucose product area. In bioethanol, lower production and sales quantities were juxtaposed with higher sales prices, but the net effect was still a decrease in HUNGRANA's revenue. With raw material prices stable at the prior year's levels and with a reduced corporate tax rate in Hungary, HUNGRANA's net profit surpassed the prior year by 8.3% and its contribution to the earnings of the Starch segment thus also rose moderately.
The food starch segment was steady in terms of sales quantities and the prices for native and modified starch products moved higher, thanks not least to impetus from the non-food sector.
The principal upside driver in non-food starches was the demand from the paper and corrugated board industry. This positive trend is fuelled by the steady growth of the online mail order market, which stimulates consumption of corrugated board and container board. Numerous capacity expansion projects by the paper industry are contributing to the firm demand.
The strategic further development of the customer and market portfolio of AGRANA Stärke GmbH towards greater specialisation is visible in sales volume growth in the international markets for construction starches and for adhesives, as well as in starch products with higher value-added and made from special raw materials. For example, significant growth was recorded in spray-dried saccharification products, where AGRANA gained market share, especially in the organic segment.
The European market for potato starch is established; the growing Latin America and Asia regions are becoming attractive export destinations for AGRANA Stärke GmbH.
In by-products, prices of high-protein products maintained a firm trend; vital wheat gluten in particular showed an upward movement in prices. Aside from the bakery industry, fish feed and pet food were the main market segments generating impetus for demand. Medium-protein feeds (Actiprot® and corn gluten feed) on the other hand are closely coupled to the soy, grain and corn markets and are thus subject to greater pressure on prices.
The environment for starch-based saccharification products, especially the isoglucose business, is determined mainly by the trajectory of the sugar market and sugar prices.
The isoglucose quota in the final year of the volume limits under the EU sugar regime was unchanged at about 720,000 tonnes, of which HUNGRANA held the largest single share at 250,000 tonnes (the amount for this equityaccounted joint venture is stated at 100% of the total). This quota was abolished on 1 October 2017 as part of the liberalisation of the EU sugar market.
For liquid saccharification products, the anticipation of this full liberalisation of the sugar markets led to very high competitive and price pressure even before the actual date of the quota expiration. Currently, as a result of the low sugar prices, customers' willingness to substitute isoglucose for sugar is not very high.
The volatility of the European market for bioethanol remained substantial in the 2017|18 financial year; after months of a close correlation between supply and demand in the EU market and firm prices in a range from € 530 to € 590 per cubic metre FOB Rotterdam, a significantly lower price range of € 455 to € 480 per cubic metre established itself since the beginning of October. Supported by the very good sugar beet crops of the 2017 campaign, more sugar beet thick juice and molasses were used for ethanol production again.
More information on the economic policy environment and market conditions for ethanol is provided in the section "Risk management" (subheading "EU Renewable Energy Directive").
World grain production in the 2017|18 grain marketing year (1 July to 30 June) is estimated by the International Grains Council (IGC)1 at 2.09 billion tonnes, which marks a small decrease from the prior year's level and is less than the expected consumption. Global wheat production is forecast at 757 million tonnes (prior year: 754 million tonnes), compared to expected consumption of 743 million tonnes. The world's corn production is projected at 1,048 million tonnes (prior year: 1,088 million tonnes), versus expected consumption of 1,068 million tonnes. Total grain stocks are estimated to decline by about 13 million tonnes to a new balance of 610 million tonnes.
Given the good worldwide supply situation for grains, futures prices declined over the financial year. On 28 February 2018 on the NYSE Euronext Liffe commodity derivatives exchange in Paris, wheat quoted at € 167 per tonne and corn at € 156 per tonne (prior year: € 172 per tonne for wheat and € 171 for corn). The reason lay in the very good US corn harvest and the good grain crops in Western Europe in 2017.
In the 2017|18 campaign the potato starch plant in Gmünd, Austria, in a campaign lasting 164 days (prior year: 149 days), processed about 260,700 tonnes of starch potatoes (prior year: 238,900 tonnes) with an average starch content of 18.0% (prior year: 19.6%). Approximately 25,600 tonnes of food potatoes (prior year: 24,800 tonnes) were converted into about 4,200 tonnes of long-life potato products (prior year: 4,400 tonnes).
The corn processing volume of AGRANA Stärke GmbH in Austria for starch products (excluding ethanol) increased in the 2017|18 financial year to about 442,700 tonnes (prior year: about 416,000 tonnes) due to the expansion of the corn processing capacity in Aschach, Austria. Of this total, about 113,7002 tonnes was wet corn (prior year: about 121,000 tonnes). The share of specialty corn processed (waxy corn, organic corn and certified non-GMO corn) increased to approximately 132,200 tonnes (prior year: about 131,000 tonnes).
At the wheat starch factory in Pischelsdorf, Austria, in 2017|18, a net raw material volume of about 191,200 tonnes of wheat was used in the production of wheat starch (prior year: 198,000 tonnes). In the attached bioethanol plant, about 656,000 tonnes (prior year: 637,000 tonnes) of grain were processed, with a ratio of about 60% wheat (including triticale) to 40% corn. Of the 2017 crop, about 86,400 tonnes of ethanol wheat and ethanol triticale were secured in advance through delivery contracts with growers. As in the prior years, cultivation contracts for ethanol grains were offered for the 2018 crop.
At the HUNGRANA plant in Hungary, a total of about 1.1 million tonnes of corn was processed in 2017|18, down slightly from the prior year as a result of a technical malfunction; the amounts for this equity-accounted joint venture are stated at 100% of the respective total. The wet-corn processing here already began in the middle of August 2017 thanks to dry weather and was completed at the end of December, at a total volume somewhat below that of the previous year. The plant in Romania processed about 69,000 tonnes of corn, a slight increase from the year before.
€ per tonne (NYSE Euronext Liffe commodity derivatives exchange in Paris)
2 Based on wet weight.
SAI FSA audits of contract potato production in Austria in 2017 confirmed gold or silver status for over 75% of all growers
through efficiency measures in plants
wsk.agrana.com/ en/starch
In 2016|17 the Starch segment too, in accordance with the AGRANA principles for the procurement of agricultural raw materials and intermediate products, which stipulate the use of good agricultural practice (GAP) and fair working conditions, continued to employ the Farm Sustainability Assessment (FSA) of the Sustainable Agriculture Initiative (SAI) for the documentation of sustainable management for its contract potato farmers. (For details on the SAI and FSA, see the section "Non-financial information statement under section 267a Austrian Commercial Code", page 10).
In the 2017|18 financial year the previously voluntary completion of the FSA questionnaire became mandatory for some contract suppliers. In the Starch segment, Austrian contract potato growers selected in accordance with the SAI FSA Implementation Framework and its Audit Guideline participated in the mandatory FSA self-assessment and the external audits to SAI standards. Based on the results of the external verification, AGRANA's Starch segment is entitled to claim gold or silver status under SAI standards for more than 75% of the statistical population of all Austrian contract potato growers. AGRANA's minimum requirements are fulfilled by all Austrian contract potato growers; areas of potential for improvement identified by the audits are addressed through existing training programmes.
In the sourcing of sustainable raw materials for the production of wheat starch and bioethanol, AGRANA has been relying for years on inputs certified under systems recognised by the European Commission, such as the International Sustainability and Carbon Certification (ISCC) and the Austrian Agricultural Certification Scheme (AACS). Both the ISCC and AACS are accorded silver status in the SAI system.
The BETAEXPO field symposium in June 2017, featuring Austria's largest demonstration field for AGRANA raw material crops, focused on crop protection and reflected the political debate over the use of specific groups of crop protection agents (for more details, see the section "Non-financial information statement under section 267a Austrian Commercial Code" from page 10).
Besides organising BETAEXPO, AGRANA also arranged many other dialog-rich events for its contract growers in the Starch segment. As in the previous years, AGRANA held a one-day event for new growers to provide information on the production of starch potatoes for industrial use, and arranged several field tours with potato and ethanol grain suppliers. AGRANA also supported a knowledge transfer conference of the Austrian Starch Potato Growers Association (VÖSK) by providing funding and content, with presentations on crop cultivation and economic efficiency of potato production; the well-attended event drew about 300 visitors. A field day for suppliers of industrial starch potatoes in October 2017 and an organic agriculture conference (see page 28) rounded out the programme for awareness-building about good agricultural practices. In the context of corn supply for starch production, a training in gentle, loss-free harvesting technique for contract farmers was held for the first time.
The successful bat conservation project launched in summer 2013 in Austria's Waldviertel district (see annual report 2014|15, page 64) was continued last year. Population counts in the spring and autumn of 2017 showed dense bat colonisation and the arrival of a fifth species of bat. Barbastelle bats, a species identified in the Austrian Red List of endangered mammals, continued to make up more than seventy percent of the animals tallied.
Energy consumption and emissions in processing The average specific direct energy consumption per tonne of product (both core and by-products) in the Starch segment rose by about 2.1% in the 2017|18 reporting period compared to one year earlier. This increase was due to the generation of more process steam at the plant in Pischelsdorf, Austria, as production volumes increased.
The average specific indirect energy consumption per tonne of product in the Starch segment fell by about 5.7% from the previous year thanks to the implementation of two heat recovery projects in Pischelsdorf.
On balance, the average specific emissions from direct and indirect energy consumption per tonne of product declined by about 2.2% from the prior year, due to the greater use of renewable energy sources especially in the corn starch plants in Aschach, Austria, and Ţăndărei, Romania.
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. In the 2017|18 financial year they were recertified. The site in Romania holds a current energy audit certification. 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 efficiency-boosting projects in individual sections of the plants. By means of the energy conservation projects in 2017|18, this target was already exceeded. To date about 54 GWh of reductions were achieved, through conservation projects such as the prewarming of the mash and purge in ethanol distillation at the site in Pischelsdorf, Austria, replacement of the protein decanters in Gmünd, Austria, and a new steam boiler in Aschach, Austria.
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
Average specific emissions (from direct and indirect energy use) from processing operations at AGRANA's starch plants1 In kg of CO2 equivalent per tonne of core and by-products
Kg of CO2 equivalent per tonne of core and by-products
1 See GRI reporting boundaries, page 9.
3 A data collection error in product output required a correction of the 2016|17 values.
4 Percentage change based on average specific emissions (from direct and indirect energy use) per tonne of core and by-products.
2 Percentage change based on average specific direct energy consumption per tonne of core and by-products.
At the AGRANA starch plants, in keeping with the Group's environmental policy, water use and effluent are managed sustainably. Process water in the starch operations is repeatedly recycled and cleaned.
within the GRI reporting boundaries (see page 9)
| Starch segment In m³ per tonne |
2017 18 | 2016 171 | 2015 16 |
|---|---|---|---|
| of core and by-products Water consumption |
4.49 | 4.02 | 4.18 |
| Water discharge | 4.69 | 4.76 | 4.35 |
The reported average specific water consumption per tonne of product (core and by-products) in the Starch segment increased by about 11.8% in the financial year compared to the prior year. This year-on-year change was attributable solely to the more exact measurement of water use at the combined wheat starch and bioethanol plant in Pischelsdorf, Austria, through the installation of additional meters. Average specific water discharge eased by about 1.4%.
The specific amount of waste from processing per tonne of product (core and by-products) was 62.3% higher in 2017|18 than the year before. This change is explained largely by the higher volume of product waste associated with the commissioning of the expansion of the Aschach, Austria, corn starch plant. However, this additional waste was reused.
within the GRI reporting boundaries (see page 9)
| Starch segment | 2017 18 | 2016 171 | 2015 16 |
|---|---|---|---|
| Tonnes, except percent | |||
| Waste disposed | 37,082 | 22,056 | 17,665 |
| Of which hazardous waste | 41 | 96 | 21 |
| Waste | |||
| per tonne of product | 3.0% | 1.9% | 1.6% |
| Hazardous waste | |||
| per tonne of product | 0.003% | 0.008% | 0.002% |
| Non- | Non- | Non | |
| Waste disposed | hazardous | hazardous & | hazardous & |
| by disposal method | hazardous | hazardous | |
| Composting | 20,809 | 16,684 | 13,030 |
| Energy recovery | 1,642 | 2,316 | 1,490 |
| Reuse | 9,842 | 24 | 700 |
| Recycling | 609 | 507 | 377 |
| Landfill | 7 | 23 | 4 |
| Other | 4,133 | 2,502 | 2,064 |
At the site of the combined wheat starch and bioethanol factory in Pischelsdorf, Austria, a project was launched in the 2016|17 financial year to return the grounds of the complex to a more natural state. In addition to planting flowering hedges as honey plants for the facility's own bee hives, the number of cuttings of meadows has been reduced to one mowing per year. In 2017|18, AGRANA also installed a falcon nest at this location. This led to the introduction of a falcon, which not only contributes to species conservation but is also intended to deter pigeons and thus help protect the production facilities.
In summer 2017, AGRANA Stärke GmbH updated its sustainability data (first provided in 2014) for the purposes of EcoVadis, the international supplier evaluation platform. AGRANA Stärke GmbH again achieved a gold rating, putting it in the top 5% of performers scored by EcoVadis.
€ 59.4 million (prior year: € 57.6 million) was invested in the Starch segment during the 2017|18 financial year. The most significant projects included the following:
Additionally, € 14.8 million (prior year: € 10.8 million) was invested in 2017|18 in the HUNGRANA companies (amounts for these equity-accounted entities are stated at 100% of the total).
Fruit preparations, fruit juice concentrates, not-fromconcentrate juices, fruit wines, natural flavours and beverage bases
Fruits (leading raw material for fruit preparations: strawberry; raw materials for fruit juice concentrates: apples and berries)
Marketed worldwide
Dairy, ice-cream, bakery, food service and beverage industries
Special strengths
Custom-designed, innovative products
Other (fruit reselling, frozen fruits, etc.)
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 business are provided by the holding company AGRANA Fruit S.A.S., based in Mitry-Mory, France. In 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 28 production sites in 20 countries for fruit preparations, and 14 plants in seven countries for the production of apple and berry juice concentrates.
| Fruit segment | 2017 18 | 2016 17 | Change | |
|---|---|---|---|---|
| % / pp | ||||
| Total revenue | €000 | 1,161,898 | 1,156,035 | +0.5% |
| Inter-segment revenue | €000 | (456) | (582) | +21.6% |
| Revenue | €000 | 1,161,442 | 1,155,453 | +0.5% |
| EBITDA1 | €000 | 113,218 | 109,952 | +3.0% |
| Operating profit before | ||||
| exceptional items and results of | ||||
| equity-accounted joint ventures | €000 | 75,639 | 71,757 | +5.4% |
| Operating profit [EBIT]² | €000 | 75,639 | 71,757 | +5.4% |
| EBIT margin | % | 6.5 | 6.2 | +0.3 pp |
| Investment3 | €000 | 49,356 | 33,822 | +45.9% |
| Number of employees (FTE)4 | 5,610 | 5,638 | –0.5% |
Revenue in the fruit preparations business rose by just under 2%, as a result partly of higher sales volume. Detracting from the revenue growth were foreign currency effects in individual countries, particularly in Argentina, China, Egypt, Mexico, Turkey, Ukraine and the USA.
Revenue increased in all AGRANA regions with the exception of North America and India/Middle East/ Africa (IMEA). In the Eastern Europe region as well (Russia and Ukraine), the business performance remained positive despite the challenging political environment. In the EU, the most important region in revenue terms, AGRANA also succeeded in selling higher volumes, despite the market contraction.
The diversification in fruit preparations towards an increased focus on the customer segments of food service, bakery and ice-cream continued and sales quantities in these areas rose.
AGRANA further improved its market position through gains in market share paralleling the growth of its global key accounts, with long-term customer contracts securing this positive evolution. As well, opportunities for sustained future growth lie in the non-dairy product areas (for instance, fruit preparations for global convenience food chains, and ice-cream components for global brands).
1 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.
Operating profit (EBIT) in the fruit preparations business increased in every region except IMEA. Significant EBIT improvements were achieved especially in the Europe, Latin America and Asia/Australia regions.
In 2017|18 the integration of the Argentine company Main Process S.A.was completed and the fruit preparations production in Argentina was concentrated at the new site. The company in India newly founded in the prior year recently launched sales of purees; its production of fruit preparations had not yet begun at the balance sheet date.
In July 2017, AGRANA Fruit (Jiangsu) Company Limited, Changzhou, was founded as a new company in the south of China in the Shanghai region; here, construction began in the third quarter of 2017|18 on a new plant that is to open in November 2018.
Revenue in the fruit juice concentrate business was down slightly in 2017|18 compared to the year before. This was a result mainly of lower concentrate prices for product from the 2016 crop compared to 2015. AUSTRIA JUICE operates globally, with the EU as its 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 marketed largely in Japan, the USA, Russia and Australia, as well as Europe.
In the 2017 apple campaign AUSTRIA JUICE saw a significant increase both in raw material prices and the market prices of its products. This was a consequence of significantly limited availability of raw materials in the wake of regional spring frost damage.
EBIT in the fruit juice concentrate activities was hurt by the reduced utilisation of the European production plants, above all in Poland and Hungary. Due to a historic poor apple crop in Europe, only about 50% of capacity was able to be utilised.
As estimated by Euromonitor, the global market for spoonable fruit yoghurts (which is relevant to the fruit preparations business) is to grow at an average annual rate of 0.6% to 2021. The markets in the Western Europe and North America regions are predicted to stagnate, while positive sales volume trends are seen in Asia-Pacific and some parts of Africa. The category of drinkable yoghurts is projected to have significantly higher average
annual growth of 7.4% over the same period. In the bakery and ice-cream sectors as well, the global market is forecast to grow overall.
Current product trends for all categories named above include new and recent products based on fancy recipes in order to offer consumers an extraordinary taste experience. Especially in the dessert segment, premium products with several layers (including fruit) or inclusions are popular and in growing demand.
Trends towards more plant-based dairy alternatives continue, and in a once purely soy-dominated market, other plant bases are increasingly gaining ground, such as almond, coconut, lupine and rice. The movement towards milk alternatives derived from plants is a trend not just in yoghurts but also in ice-creams and desserts.
In the development of new products the theme of naturalness is an important one, addressed through locally inspired flavours or seasonal products. A major dimension which complements the naturalness trend is that of clean label, which centres on achieving a list of ingredients as short and simple as possible. This trend is already very prominent in Europe and North America in particular, but in other regions such products are also increasingly in demand. Products rich in protein, or with added seeds or cereals, and fruit yoghurts with a reduced sugar content are also in vogue. In the drinkable yoghurt segment, besides kefir, the addition of exotic ingredients such as turmeric is currently popular.
The concentrate business remains marked by the trends both towards lower fruit content in beverages and towards not-from-concentrate 100% juices. There is rising demand for beverage bases with a reduced fruit juice content. Sales of apple juice concentrate for the production of cider remain stable and cider consumption is growing globally.
Prices in Europe for apple juice concentrate had stabilised at a solid level in the first half of 2017|18 as a result of a rise in demand coinciding with limited quantities of supply in the main growing regions. The low crop volumes in the major apple production regions Poland, Hungary, Germany and Italy caused the prices of concentrate from the 2017 apple campaign to rise significantly from the prior year.
Apple juice concentrate from China showed only a mildly rising price trend year-on-year, leading to an increase in demand for Chinese product in Europe.
2017|18: Determine the sustainability status of fruit suppliers based on specified international certifications
Direct and indirect energy consumption of 1.72 GJ per tonne of product
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
wsk.agrana.com/ en/fruit
In the fruit preparations business about 560,000 tonnes of product were manufactured and sold in 2017|18. Compared to the prior year, almost 5% more raw materials were processed. Fruit prices remained stable overall relative to the prior year.
In terms of processed volume, strawberry was the leading fruit, with the supply for the European and Eastern European market coming mainly from Southern Europe, North Africa and Poland, while strawberry for the US market was sourced mainly in Mexico and Egypt. China, Korea and Australia were supplied largely with Chinese product. Across all regions, the processing volume and purchasing prices for strawberry were at the year-earlier levels.
The second most important fruit by processing volume was peach, of which approximately 11% more was processed than in the prior year. The most competitive procurement markets for peaches are Greece and Spain, followed by China. As the harvests were predominantly very good, prices were significantly lower than in the year before.
Blueberry, the third most important fruit in the 2017|18 financial year, had a processing volume in line with the prior year, but was about 50% more expensive in Europe as a result of small harvests. In all other procurement regions, such as the USA and Canada, prices increased in the course of the year from an initially good level during the harvest.
The purchasing prices for other ingredients were stable. In countries like Russia, Turkey and Egypt, weak local currencies were advantageous for procurement.
In the fruit juice concentrate business, available supplies of apples in the foremost European processing regions (Poland and Hungary) were significantly below levels of the year before. Local frosts, especially in Poland, Europe's largest apple producer, led to the poorest European apple crop in the past ten years. The capacity utilisation rate of the European fruit juice concentrate plants in the 2017 campaign was thus only about 50%. In China the production season was very satisfactory.
The berry processing season was on the whole marked by normal available volumes of the principal fruits, with the exception of sour cherry. The prices for the most important raw materials (strawberry, sour cherry and black currant, though not raspberry) were up from the prior year.
Supplier environmental and social assessment
In the 2017|18 financial year the Fruit segment continued to advance the implementation of the AGRANA principles for the procurement of agricultural raw materials and intermediate products.
AGRANA Fruit Services GmbH (AFS), Vienna, the purchasing organisation responsible for the procurement of raw materials and intermediate products in the fruit preparations business, for the 2017|18 financial year again documented the certification status of primary processors and resellers of fruits and intermediate products under defined sustainability standards (see procurement models from page 4). In the year under review, 13.7% of the raw materials procured by AFS had a sustainability
certification; most of these were certified organic, and the remainder were certified under another customer standard of industry-wide relevance or under the Rainforest Alliance (RA) standard. The RA standard and the customer-specific standard are accorded silver status in the benchmarking to the requirements of the Farm Sustainability Assessment (FSA) of the Sustainable Agriculture Initiative (SAI). As organic standards focus exclusively on agricultural practices and do not touch upon social topics such as worker safety, human rights, etc., organic certification alone is not enough to achieve a sufficiently high score in the SAI benchmarking. The situation is similar for GlobalGAP certification; however, the so-called GRASP add-on module to GlobalGAP also covers social sustainability aspects. In the future, this add-on will also be available for the organic sector (for details on the FSA assessment, see page 10). Until then, for interested customers, raw materials are also procured with organic and fair trade certification, entitling them to claim SAI silver status. To also evaluate its suppliers for their adherence to social aspects, AFS invites new suppliers to participate in the Supplier Ethical Exchange Database, or SEDEX (for details on SEDEX, see page 13). In the 2017|18 financial year, suppliers representing 81.7% of the procurement volume of AFS were already SEDEX members. For suppliers representing 61.3% of its procurement volume, AFS can view the suppliers' self-assessments and existing audit documents and use them for supplier evaluation.
In 2017|18 the project (supported by the Austrian Development Agency since 2014) for the improvement of social and environmental standards with contract farmers in the South Pacific island nation of Fiji was continued. In Fiji, since 2014, AGRANA supports small farmers by acting as the holder of a group certification for bananas, guavas and mangoes under the internationally recognised Australian Certified Organic standard (ACO). Since 2016 the AGRANA plant also processes passion fruit, albeit not yet in an organic grade. In the course of the project, the number of certified farmers was increased by 255 operations; additionally, 50 farms are in the process of conversion to organic methods and will soon receive their organic certification. In the year under review, most new participants recruited to the project were young, well-motivated farmers with a high willingness to acquire the necessary expertise through training and to invest in their farms. The aftermath of Cyclone Winston, which raged across Fiji
in February 2016, remained a reality throughout the 2017|18 financial year. Nearly a full year's banana harvest was lost, and as a result of the high demand for fresh product on the domestic market, very little banana was available for puree production. The propagation of virusfree planting stock (banana and pineapple) in the local AGRANA-owned organic laboratory was launched as planned, and was all the more important in view of the storm damage. At the end of 2017, ten thousand seedlings were already distributed to the contract farmers for planting. The development project, which was conceived to run for three years, was completed in October 2017; the intensive collaboration with the organic farmers and the production of organic fruit purees continue.
As all procurement for custom recipes in the fruit preparations business is done to customer specifications, the future trend in the volume of certified raw materials will depend on these customer requirements.
The fruit juice concentrate business, 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 on 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. Besides 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 the financial year about 11% of all apples processed by AUSTRIA JUICE into apple juice concentrate worldwide came from these two projects.
In contract crop production, for the documenting of sustainable environmental and social criteria at its suppliers' operations, AUSTRIA JUICE uses the Farm Sustainability Assessment of the Sustainable Agriculture Initiative (for details, see the section "Non-financial information statement under section 267a Austrian Commercial Code", page 10). The financial year was the first in which Hungarian suppliers of disease- and pest-resistant apple varieties, who were selected according to SAI standards, also participated in the mandatory FSA self-assessment and the external audits. As a result, AUSTRIA JUICE is entitled under SAI standards to claim silver (and in some cases gold) status for the majority of Hungarian growers of resistant varieties. The minimum requirements are met by all Hungarian contract growers of resistant varieties; areas of potential for improvement are addressed through training events. In the 2018|19 financial year the FSA questionnaire and external verification are also to be used with the contract apple farmers in Poland.
Energy consumption and emissions in processing The average specific direct energy consumption per tonne of product (both core and by-products) in the Fruit segment declined by about 13.4% in 2017|18 compared to the prior year. This reduction was driven by both of the segment's businesses, fruit preparations and fruit juice concentrates.
Average specific indirect energy consumption in the Fruit segment as a whole rose by about 5.9% from one year earlier. This increase also occurred in both business activities.
On balance, the average specific emissions from direct and indirect energy consumption per tonne of product fell by 12.7% from the prior year, thanks partly to the greater use of renewable energy in the fruit preparations business (reflecting especially the fact that the fruit preparations site of Main Process S.A. in Argentina was included for the first time).
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
Average specific emissions (from direct and indirect energy use) from processing operations at AGRANA's fruit plants1 In kg of CO2 equivalent per tonne of core and by-products
Kg of CO2 equivalent per tonne of core and by-products
1 See GRI reporting boundaries, page 9.
3 The values for 2015|16 and 2016|17 have been corrected as a result of a data collection error in the fruit preparations business.
4 Percentage change based on average specific emissions (from direct and indirect energy use) per tonne of core and by-products.
2 Percentage change based on average specific direct energy consumption per tonne of core and by-products.
At the balance sheet date, the energy management systems of 35% of all production sites of the Fruit segment within the GRI reporting boundaries (see page 9) held a certification under ISO 50001.
The average specific consumption of water in the Fruit segment increased by about 2.7% in the financial year. This resulted from higher water use in the fruit preparations business, especially at the site of Main Process S.A. in Argentina, which was included in the sustainability data for the first time. The average specific amount of water discharge, by contrast, eased by 1.1% as a higher discharge in the fruit preparations activities was more than offset by lower discharge on the fruit juice concentrates side.
within the GRI reporting boundaries (see page 9)
| Fruit segment | 2017 18 | 2016 17 | 2015 16 |
|---|---|---|---|
| In m³ per tonne | |||
| of core and by-products | |||
| Water consumption | 4.39 | 4.27 | 4.27 |
| Water discharge | 4.03 | 4.07 | 3.99 |
The increase in the specific waste amount in the Fruit segment from 26.5 kilogrammes per tonne of product (core and by-products) in the prior year to 38.5 kilogrammes in 2017|18 was attributable to both business areas. The reported rise in the amount of hazardous waste resulted only from a broadening of the definition of hazardous waste at the fruit preparations site in Russia.
within the GRI reporting boundaries (see page 9)
| Fruit segment | 2017 18 | 2016 17 | 2015 161 |
|---|---|---|---|
| Tonnes, except percent | |||
| Waste disposed | 31,877 | 23,038 | 45,955 |
| Of which hazardous waste | 238 | 43 | 37 |
| Waste | |||
| per tonne of product | 3.8% | 2.7% | 5.6% |
| Hazardous waste | |||
| per tonne of product | 0.028% | 0.005% | 0.005% |
| Waste disposed | |||
| by disposal method | |||
| Composting | 2,753 | 0 | 4,064 |
| Energy recovery | 855 | 899 | 392 |
| Reuse | 2,026 | 1,985 | 16,902 |
| Recycling | 10,125 | 9,170 | 14,895 |
| Landfill | 15,454 | 10,950 | 9,675 |
| Other | 425 | 33 | 27 |
1 The amounts of waste reported in 2015|16 were partly revised at the time according to the new definition of waste introduced for 2015|16. Complete application of the new definition only became possible for the 2016|17 financial year (see content boundaries of GRI reporting, page 12).
2 Within the GRI reporting boundaries (see page 9).
The fruit juice concentrate business at its headquarters in Kröllendorf/Allhartsberg, Austria, as part of its biodiversity activities, supports a project of the "Forum for Nature and Species Conservation" aimed at the reintroduction of the little owl. This species, one of the smallest of the owls, is considered endangered as a breeding population in Austria. For its survival it needs a fine-structured landscape (ideally including orchard meadows) with cavity trees in a rural setting – conditions that are common near this AGRANA site.
In the 2017|18 financial year, AUSTRIA JUICE GmbH updated its sustainability data for the purposes of EcoVadis, the international supplier evaluation platform. It moved up from an initial silver status to a rating of gold, putting it in the top 5% of performers scored by EcoVadis.
The capital expenditure of € 49.4 million in the Fruit segment in 2017|18 (prior year: € 33.8 million) represented capacity expansion and plant modernisation projects, among others. It encompassed various projects across all 42 production sites, prominent examples being the construction start of the second fruit preparations plant in China and a new carrot concentrate production line in Hungary.
In a highly competitive marketplace, it is crucially important for AGRANA to identify market trends, satisfy the markets' needs through product innovations and develop customised solutions for its clientele. In close partnership with customers, AGRANA's research and development (R&D) teams are always working on new technologies, specialty products and innovative applications for existing products, thus supporting the Group's strategic focus on lasting success.
The AGRANA Research & Innovation Center (ARIC) in Tulln, Austria, is the Group's central research and development hub for the Sugar, Starch and Fruit businesses, and works together with AGRANA's 16 local NPD1 centres. A key goal of ARIC, which is structured as a separate company wholly owned by AGRANA Beteiligungs-AG, is to develop innovative products from sugar beets, potatoes, corn (maize), waxy corn, wheat and fruits. ARIC is active nationally and internationally as an in-house R&D service provider for sugar technology, food technology, starch technology, microbiology, biotechnology and fruit preparations development. The research center also offers its specialist R&D know-how to third parties and acts as a government-accredited laboratory for sugar beet quality control.
The collaboration of R&D specialists from the different segments (Sugar, Starch and Fruit) under one roof not only drives administrative synergies but also promotes a creative exchange between different groups of researchers, particularly on subjects that cut across segment boundaries. The complementarity between the groups' experience is particularly valuable in cross-segment areas of research, such as technologies, thickeners and aromas, microbiology, product quality and safety, and organic products.
| Research and development | 2017 18 | 2016 17 | 2015 16 | |
|---|---|---|---|---|
| R&D expenditure (internal and external) | €m | 17.0 | 15.9 | 14.9 |
| R&D-to-sales ratio2 | % | 0.66 | 0.62 | 0.60 |
| Number of employees in R&D (headcount) | 251 | 221 | 214 |
The systematic selection of sugar beet varieties for the further optimisation of sugar production is becoming increasingly important especially in growing regions with a higher risk of pest damage, crop disease and drought. Besides selecting varieties with a high tolerance to such stressors, a high degree of "storage stability" (a long storage life) of the beet is a decisive factor in ensuring the viability of factory locations in the long term, as this stability in storage is the prerequisite for extending the processing period.
While the storability of beet is also affected by the amount of soil clinging to it, the degree of injury and the storage temperature, a critical determining factor is the genetic make-up of the beet varieties used. In a project supported by Austria's Research Promotion Agency (Forschungsförderungsgesellschaft, FFG) and conducted jointly with the Austrian Institute of Technology (AIT) and other partners, work is underway to characterise the genetic material and thus allow the identification of suitable varieties to be greatly accelerated.
A major research priority remains the optimisation of yield in sugar extraction. In the extraction area of the individual sugar factories, according to whether they have a beet pulp drying facility or not, R&D staff is at work to adjust the – desirable – controlled microbial activity so as to achieve an optimal balance between minimising sugar losses to bacteria and allowing enough microbial action to optimise the processability of the spent beet pulp. In addition to establishing the use of automated analysers for the monitoring of microbiological activity, AGRANA stepped up its continual efforts to optimise disinfection measures in the sugar plants.
1 NPD: new product development.
2 R&D expenditure as a share of Group revenue.
As a result of new recommendations in spring 2017 from the European Commission for controlling the nitrite and nitrate content in animal feed raw materials produced by the sugar industry, the European Food Safety Authority was tasked with evaluating these guidelines in terms of animal health aspects.
Yield fluctuations in the production of beverage alcohol prompted a detailed investigation of the fermentability of molasses. In the laboratory the underlying variations in the fermentability of molasses from different origins were confirmed. Based on extensive analytical study, a process was developed to level out these variations in molasses quality as far as possible and ensure a constant yield in beverage alcohol production.
The by-products of sugar production, such as molasses residue and pressed beet pulp, are currently utilised as feedstuffs. Together with the Department of Agrobiotechnology (Tulln campus) of Vienna's University of Natural Resources and Applied Life Sciences and three external companies, a project supported by the FFG was launched to produce polyhydroxyalkanoates (PHAs) from molasses residue and pressed beet pulp. PHAs are building blocks for the manufacture of a wide range of bioplastics on a sustainable basis.
The effect of advanced degrees of ripeness of Austriangrown varieties of corn and waxy corn on starch properties was studied in systematic tests. The study found that the starch attributes, such as chemical modifiability, correlate with the stage of ripeness. As these results are very dependent on factors like weather and site quality, the study must be expanded to more planting sites and especially to several growing seasons. The insights gained are to be used in raw material management.
Naturalness, clean label, GMO-free and organic grades are trends in the food industry that have become very important to many consumers. Manufacturers must therefore find and develop new raw materials, new technologies and new applications that address this demand. Thus, at AGRANA, technologies were developed that permit the production of starches with properties previously achievable only by chemical modification. The optimisation and adjustment of treatment methods makes it possible to use starches that can be labelled as additive-free.
Given the growth in the number of consumers choosing a vegetarian or vegan diet, and the rising demand for allergen-free products and health-promoting ingredients, product development teams in particular are working hard to accommodate these trends. For instance, AGRANA developed and successfully established plant-based products on the market that permit the replacement of whole egg in a wide range of applications and that can also be substituted for gelatin in products like gums and jellies. Another important area of development is the creation of food ingredients with properties conducive to gut health, such as soluble and insoluble dietary fibre.
The subject of sustainability and the continual rise in environmental consciousness also defined the development of new products and optimisation of processes in starches for non-food use.
At the forefront of the research and development efforts were new thermoplastic starches for use in biodegradable bioplastics. In collaboration with external scientific partners, the product portfolio of modified starches was expanded. Under the name Amitroplast®, a product group has been created that fully answers the needs of the market for sustainable, biodegradable blown films. The development work resulted in novel starch products for different film types that enable better processing on the blown film line. It generated environmental value-added, raising the sustainable content in packaging without a loss of quality to the customer.
Another focus of development was process optimisation for the existing product range to achieve more frugal use of raw materials and energy resources. Technical innovations and new insights in the process control of starch derivatization permitted savings in the consumption of chemicals and energy. This made starch product manufacturing significantly more efficient. These technical and technological adjustments not only improved process stability but were also positive for the utilisation of production capacity.
In the bioethanol activities, the evaluation of new enzymes and yeasts for their impact on the efficiency and profitability of the production process remained a priority. Through permanent improvements in process conditions and fermentation control, the yield of bioethanol was further optimised.
The results from the prior year regarding a new technology for the microbial inactivation of fruit were further refined through continued industrial-scale trials. The use of the new technology resulted in residue-free raw material with significantly reduced microbial activity. The fruits treated by this method can be further processed more gently than would otherwise be possible, which permits an improvement in the organoleptic properties of fruit preparations.
Another research focus was on improving the preservation of fruit texture during processing. Going forward, the technology involved will be used to safeguard constant product quality during the entire harvest and processing. It is also employed in products where greater visual recognition of the fruit (as distinct individual pieces) is desired.
In partnership with Vienna University of Technology, modelling in computational fluid dynamics furthered the understanding of best-practice facility design for the production of fruit preparations, which will ultimately lead to a reduction in thermal and mechanical stresses on the fruit. The planned implementation at industrial scale is expected to result in both increased productivity and lower energy consumption.
Consistent with the trend towards greater naturalness in fruit preparations, stabiliser-free concepts were developed and the use of new technologies led to a reduction in manufacturing time. As well, mango, apple, pear and fig were successfully used in mixtures with other raw materials.
R&D also developed concepts based on various natural sweeteners.
In 2017|18 in the fruit juice concentrate business, the product categories of beverage bases and aromas were successfully expanded further. For these development areas, strategic investments were made in infrastructure and human resources. Among other milestones, the expansion of the R&D and analytics departments was completed and brought into service.
The in-house production of composite aromas continued to be further developed in order to build up the growth segment of beverage bases and the aroma business.
Targets for workplace safety 2017|18 in Sugar segment Target achieved
2017|18 in Starch segment Target not achieved
Target for lost day rate1 reduction achieved
achieved
In the 2017|18 financial year the AGRANA Group as a whole employed an average of 8,730 people (by headcount; prior year: 8,569). Of this total, 2,251 worked in Austria (prior year: 2,152) and 6,479 were employed in other countries (prior year: 6,417). 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 | 28 Feb | 28 Feb | ||||
| Segment | 2017 18 | 2016 17 | 2017 18 | 2016 17 | 2018 | 2017 | |
| Sugar | 2,134 | 2,130 | 2,109 | 2,107 | 1,958 | 1,966 | |
| Starch | 983 | 912 | 959 | 893 | 994 | 925 | |
| Fruit | 5,613 | 5,527 | 5,610 | 5,638 | 5,651 | 5,010 | |
| Group | 8,730 | 8,569 | 8,678 | 8,638 | 8,603 | 7,901 |
In the Sugar segment the employee count remained steady relative to the prior year. Meanwhile in the Starch segment, the expansion of the corn starch plant in Aschach, Austria, and of wheat starch production in the combined wheat starch and bioethanol plant in Pischelsdorf, Austria, led to an increase in staff numbers. In the Fruit segment, the number of employees (in full-time equivalents) was down slightly from one year earlier. This was due primarily to a decrease at the fruit preparations site in Coronda, Argentina, which outweighed the addition of personnel at the new company in India. Other, volume-related rises and falls in local staff levels had no impact on the average number of FTE.
The average age of permanent employees3 on 28 February 2018 was 42 years, as in the prior year (for details of the age structure, see annual report 2017|18, GRI content index, page 182). Of the permanent employees, 29.3% (prior year: 29.4%) were women, and 56.7% of salaried staff held an academic degree (prior year: 57.1%). The turnover rate for permanent staff in 2017|18 was 12.6% (prior year: 11.5%). The proportion of employees with a part-time contract was 3.1%.
Dedication, entrepreneurial thinking and action, and employee development are the cornerstones of AGRANA's personnel strategy. Likewise, mutual respect, social consciousness and sustainable business form essential elements of the corporate culture. Diversity too is embraced as a day-to-day practice at AGRANA, which is especially evident in the collaboration of its international business units.
at the balance sheet date of 28 February 20185
| Non-permanent staff6 |
Permanent staff | Managers7 | Of whom executive |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Blue- | White- | leadership8 | ||||||||||
| Segment | Total | Female | collar | Female | collar | Female | Total | Female | Total | Female | Total | Female |
| Sugar9 | 149 | 30.9% | 1,063 | 17.1% | 746 | 39.8% | 1,809 | 26.5% | 141 | 24.8% | 18 | 16.7% |
| Starch | 55 | 16.4% | 618 | 12.6% | 321 | 44.5% | 939 | 23.5% | 63 | 19.0% | 3 | 33.3% |
| Fruit | 1,663 | 72.0% | 2,529 | 23.1% | 1,459 | 47.4% | 3,988 | 32.0% | 289 | 28.0% | 12 | 8.3% |
| Group | 1,867 | 67.1% | 4,210 | 20.0% | 2,526 | 44.8% | 6,736 | 29.3% | 493 | 26.0% | 33 | 15.2% |
2 Full-time equivalents.
3 Permanent employees of AGRANA Group companies. 4 See GRI reporting boundaries, page 9.
5 For prior-year values, see annual report 2017|18, GRI content index, page 179.
AGRANA promotes the potential of its people. Only through the long-tern development of its people can AGRANA ensure its continuing strength as a competitor in the marketplace. Training and development programmes thus continued to be a high priority last year.
As a global company, AGRANA also makes a point of maintaining a high standard of quality in its human resources activities and seeks to continually enhance them further. Thus, a number of initiatives were launched in the 2017|18 financial year, including preparatory work for the future implementation of a global human resource management system.
The incentivising and recognition of performance is a major element of the personnel strategy and a significant factor for the Group's success. To help achieve the company's strategic and operational objectives, a Groupwide performance management system is in place for managerial staff. Next 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 2017|18 financial year, 8.5% of all employees (prior year: 8.5%) were covered by this performance-related compensation system.
AGRANA Beteiligungs-AG again placed third in 2017|18 in the BEST RECRUITERS sector ranking for the Austrian food industry and again numbered 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 top employers in Austria, Germany, Switzerland and Liechtenstein. The study considers more than 130 scientific criteria in assessing job advertisements, recruiting presence and the treatment of applicants.
The awarding of the BEST RECRUITERS mark attests to the fact that AGRANA attaches great importance to the respectful and friendly treatment of potential new employees. The Group sees this recognition as an affirmation of its efforts to continually refine the quality standards it applies to the process of searching for new talent, and takes it as motivation to adopt promising new recruiting trends.
In Slovakia the HR team of Slovenské Cukrovary s.r.o. won distinction as "Leading HR Organisation of 2017" in the manufacturing sector. The field of contestants for this award includes most of the leading companies in Slovakia, and the ranking is based solely on the evaluation of about 100 HR performance indicators.
AGRANA subsidiary Magyar Cukor Zrt.was honoured as "Employer of the Year in 2017" in Hungary.
AGRANA systematically supports the steady improvement of its employees' knowledge and the development of their skills. Besides many job skills trainings and personal development offerings, intensive Group-wide programmes were also available. These training courses not only
| Training hours of AGRANA employees1 | |
|---|---|
| in the 2017 18 and 2016 17 financial years |
| 2017 18 | 2016 17 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Average training hours per employee |
Proportion of employees who |
Average training hours per employee |
Proportion of employees who |
||||||
| Segment | Total | Male | Female | received training | Total | Male | Female | received training | |
| Sugar2 | 31.0 | 30.8 | 31.6 | 86.3% | 27.7 | 27.4 | 28.5 | 88.1% | |
| Blue-collar | 30.0 | 31.1 | 24.6 | 79.0% | 22.1 | 22.8 | 18.8 | 83.8% | |
| White-collar | 32.5 | 30.2 | 35.8 | 96.8% | 36.0 | 36.9 | 34.7 | 94.5% | |
| Starch | 22.9 | 22.5 | 24.5 | 93.5% | 20.3 | 18.3 | 26.9 | 76.5% | |
| Blue-collar | 21.1 | 20.5 | 25.9 | 86.0% | 14.8 | 14.0 | 21.0 | 68.2% | |
| White-collar | 26.5 | 28.8 | 23.7 | 100.0% | 31.8 | 33.1 | 30.1 | 93.8% | |
| Fruit | 24.3 | 23.5 | 26.2 | 91.1% | 26.7 | 25.6 | 28.9 | 87.3% | |
| Blue-collar | 18.6 | 18.8 | 17.9 | 90.9% | 20.6 | 20.8 | 20.1 | 86.5% | |
| White-collar | 34.5 | 35.5 | 33.3 | 91.4% | 37.7 | 38.7 | 36.7 | 88.9% | |
| Group | 26.0 | 25.4 | 27.3 | 90.1% | 26.1 | 25.1 | 28.6 | 86.1% | |
| Blue-collar | 21.9 | 22.3 | 20.1 | 87.2% | 20.2 | 20.3 | 19.9 | 83.3% | |
| White-collar | 32.9 | 32.9 | 32.8 | 95.1% | 36.5 | 37.4 | 35.4 | 91.2% |
1 Permanent staff within the GRI reporting boundaries (see page 9).
2 The staff of AGRANA Beteiligungs-AG is counted under the Sugar segment.
improve the Group's competitiveness but also help raise employee motivation and self-esteem. Every employee matters to AGRANA, and appropriate development opportunities are therefore offered for all levels of staff.
The top training priorities in 2017|18 remained management development and the development of trainings for subject experts in some selected functional areas. In the year under review, AGRANA provided training to a total of 75 apprentices (the average number for the year) in Austria, Germany, France, Slovakia and Brazil in preparation for careers as, among others, mechanical engineering technicians, electrical engineering technicians, plant electricians and process control technicians, metalworking technicians, chemical lab technicians, food technicians, mechatronics technicians, industrial sales representatives and computer technicians.
As well, two international trainee programmes in the areas of purchasing and production were successfully implemented. For these, AGRANA received the TraineeNet Award 2017 for "true and fair trainee programmes" in July 2017. The certification process reviewed whether AGRANA's trainee programmes meet the defined requirements (academic degree, job rotation, fair salary, and talent development) for such a programme. The AGRANA trainee programmes are the result of intensive design work and include internal mentoring by AGRANA mentors, project work, job rotations within the AGRANA Group, and intensive training modules.
In the 2017|18 financial year, 25 members of staff and managers from across the Group continued the fifth iteration of the international AGRANA Competencies Training (ACT) programme for prospective new managers. ACT is designed for individuals seen as having high potential, excellent performance and exceptional motivation. In January 2018 the participants completed the ACT V curriculum. Following their graduation from the programme, the junior managers were given the opportunity, as a new initiative, to have access to an AGRANA mentor at the senior management level for their further in-house development.
AGRANA-wide onboarding programmes and welcome days are conducted on an on-going basis to give new staff a comprehensive view of the Group as a whole and of their own area of activity. 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. AGRANA values harmonious working relationships, and team-building activities help improve communication and effectiveness in working together in the various departments.
The Group's expenditure for external training and development in the 2017|18 financial year was about € 2.9 million (prior year: € 2.6 million), equivalent to 1.2% (prior year: 1.2%) of total wages and salaries.
in the 2017|18 and 2016|17 financial years
| Injury rate2 | Lost day rate3 | Absentee rate4 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Segment | Total | Male | Female | Total | Male | Female | Total | Male | Female | |
| 2017 18 | ||||||||||
| Sugar | 2.7 | 3.4 | 0.8 | 36.5 | 42.5 | 19.7 | 6,579.4 | 6,448.7 | 6,945.5 | |
| Starch | 3.3 | 3.4 | 2.8 | 47.5 | 48.5 | 43.7 | 7,636.8 | 7,807.4 | 7,021.5 | |
| Fruit | 2.0 | 2.1 | 1.8 | 28.3 | 28.7 | 27.5 | 3,922.1 | 3,779.7 | 4,171.4 | |
| Group 2016 17 |
2.3 | 2.7 | 1.7 | 33.0 | 35.6 | 27.3 | 5,111.8 | 5,147.0 | 5,036.1 | |
| Sugar | 2.9 | 3.3 | 1.7 | 41.4 | 41.1 | 42.4 | 6,514.1 | 6,036.2 | 7,798.1 | |
| Starch | 2.2 | 2.5 | 1.0 | 24.3 | 28.9 | 7.1 | 7,381.2 | 7,680.1 | 6,281.5 | |
| Fruit | 2.4 | 2.7 | 1.9 | 30.1 | 36.0 | 19.9 | 3,721.8 | 3,563.9 | 3,996.7 | |
| Group | 2.5 | 2.9 | 1.8 | 32.5 | 36.5 | 23.9 | 4,935.8 | 4,887.7 | 5,039.3 |
In the year under review, no fatal accident occurred; in the prior year there was one fatality1. In the year under review there were 13 accidents (prior year: 8 accidents) of contractors; for organisational reasons these are not included in the workplace safety data.
Business travel accidents (7), Slips/ falls/falls from heights resulting in injuries (58), bruises, crushing injuries, lacerations (52), cuts and punctures (24), eye injuries (7), burns and scalds (18), others (11)
1 Non-permanent (i.e., fixed-term or temporary) and permanent employees within the GRI reporting boundaries (see page 9).
2 Injury rate = (total number of accidents5 ÷ total paid hours worked6) × 200,0007
3 Lost day rate = (total number of lost days8 ÷ total paid hours worked6) × 200,000
4 Absentee rate = (total number of missed hours due to accident⁵ and sickness ÷ total paid hours worked6) × 200,000 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 An eight-hour work day is assumed.
50
For AGRANA as a manufacturing company, nothing is more important than workplace safety. To facilitate the comparability and analysis of workplace accidents and enable informed corrective action, AGRANA collects fully standardised worldwide health and safety data.
Under the AGRANA Fit programme, with the goal of maintaining and improving employees' health and wellness, AGRANA in many locations offers preventive health checkups and/or vaccinations (for influenza, tick-borne encephalitis, etc.) as part of the routine occupational health services. As well, some locations have individual arrangements with local fitness facilities and health care organisations.
AGRANA provides a broad sports offering for its employees, such as ski days, in-house football tournaments, bowling, American football, walking groups, bouldering, fitness boxing, Nordic walking, and yoga, Pilates and boot camp courses.
In September 2017, as every year, AGRANA staff participated in force in the Wien Energie Business Run. The 56 teams of three persons each that were fielded by the company came from all of its business areas.
Alongside numerous health and sports offerings, the Group locations provided many other related opportunities, such as workshops for employee information, sensitisation and continuing development in the areas of work-life balance management, stress reduction, burnout prevention, and for the right ergonomics in the workplace.
Healthful nutrition is a major element of personal wellbeing, and AGRANA thus also raises its own employees' awareness of the importance of balanced and healthy eating and drinking. Besides holding workshops, this is done through local initiatives such as making free fresh fruit available at work on a self-serve basis. AGRANA Fruit US was again recognised in the year under review as a Gold-Level Fit-Friendly Worksite by the American Heart Association for its work in this sphere.
Harmonising the demands of work and family is important from a social sustainability perspective and plays a prominent role in AGRANA's human resources strategy.
For this reason, AGRANA joined the "Business for Family" network of the Federal Ministry for Family and Youth back in spring 2016.
Across the Group, this is reflected in several initiatives and offerings for employees. Teleworking, support for and even the direct provision of child care (including special such services during the holidays), variable working hours, and a parent-child office at the Vienna headquarters are all part of this effort. In addition, employees' families are included in a number of events, group meals and sports activities (also see annual report 2017|18, corporate governance report, page 29).
in the 2017|18 and 2018|19 financial years
| Segment | Targets for 2017 18 | Target achievement in 2017 18 | Targets for 2018 19 |
|---|---|---|---|
| Sugar | Reduction of 10% in the number of work- place accidents2 (base: financial 2015 16) through site-specific packages of measures. |
In the year under review the number of workplace accidents2 increased by 1.8% from 2015 16. The injury rate2 and lost day rate2 were reduced. |
Continuing implementation of site-specific measures. |
| Starch | Reduction in the number of workplace accidents2 to fewer than twelve in the financial year (from 20 accidents in 2016 17) through implementation of site-specific packages of measures. |
There were 32 workplace accidents2 in the year under review. |
Reduction in the number of workplace accidents2 to fewer than twelve in the financial year through implementation of site-specific packages of measures. |
| Fruit Fruit preparations business |
Injury rate²: 1.8 Lost day rate2: 24 |
Injury rate2: 1.6 Lost day rate2: 23.7 |
Injury rate²: 1.5 Lost day rate2: 20 |
While the Starch segment was unable to meet its workplace safety targets in 2017|18 as a result mainly of a significant workplace accident2 in the corn starch plant in Aschach, Austria, the Sugar segment achieved an improvement in the injury rate2 and lost day rate2, and the Fruit segment's ongoing "Safety First" workplace safety programme showed results.
1 Non-permanent (i.e., fixed-term or temporary) and permanent employees within the GRI reporting boundaries (see page 9).
2 See definition on page 50.
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, Groupwide 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:
Risk management representatives have been designated for the business segments of the AGRANA Group. These representatives are responsible for initiating loss-minimising measures as required, subject to Management Board approval.
The design and implementation of risk management under rule 83 of the Austrian Code of Corporate Governance is evaluated annually by the independent audit firm, which submits the findings in a final report on the viability of the Group-wide risk management. The evaluation uses 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.
AGRANA sees the responsible management 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.
The AGRANA Group is exposed to risks both from its business operations and from its national and international operating environment.
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, a risk is also posed by fluctuation in the prices of these inputs (to the extent that the difference cannot be passed through to customers). 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. The availability of sugar beet is gaining additional importance as a result of the changed market situation in Europe since 1 October 2017 (also see the section "Risks from sugar market regulation" below), as beet prices are increasingly determined by the price of sugar. For the refining facilities in Bosnia and Herzegovina and in Romania, the basic driver of AGRANA's profitability is how much value can be added by processing the purchased raw sugar, given 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 white sugar and contracts with industrial customers 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. Thanks to the utilisation of national and international procurement markets, the availability of raw materials can largely be regarded as assured. For specialty grades and varieties, the required volumes are also secured through contract farming.
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. Selling prices of bioethanol in Europe are driven largely by the quotations on the Platts information platform, which do not reflect raw material prices but fluctuations in the ethanol market. The volatility in bioethanol prices is correspondingly high.
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 remedial action in response. Also, where possible, one-year contracts are used both with suppliers and customers.
In the fruit juice concentrate business, 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 hedging the underlying transaction.
The production processes, especially in the Sugar and Starch segments, are energy-intensive. AGRANA therefore continually invests in improving the energy efficiency of its 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.
AGRANA sees the manufacturing and marketing of highquality, safe products as a fundamental requirement for long-term economic success. The Group applies rigorous quality management that is continually refined and that meets the requirements of the relevant food and beverage legislation, standards and customer specifications. The quality management covers the entire process from raw material procurement, 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.
In its worldwide operations, AGRANA is exposed to intense competition from regional and supraregional competitors. The market entry of new competitors or the addition of more production capacity by existing rivals may intensify competition in the future.
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, AGRANA frequently adjusts its capacity and cost structures in order to maintain its 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, in the future, could lead to a partial backward integration on the part of customers into core businesses of individual segments of the AGRANA Group.
To strengthen existing market positions, AGRANA invests extensively in all its business segments. As well, investments in new markets are evaluated and undertaken. Intensive negotiations are currently underway for the acquisition of the Serbian sugar company Sunoko. As well, the construction of a second fruit preparations plant in China is in progress and AGRANA is preparing to manufacture fruit preparations in India. An important upcoming challenge will be to integrate these new activities into the Group organisation as rapidly as possible.
The still unstable political situation between Ukraine and Russia could have a negative impact on the market environment in the Fruit segment. Currently, however, the region continues to show a stable earnings situation.
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 25 of this report, in the section on the Sugar segment.
Sugar regime: Since 1 October 2017 there is no longer a minimum beet price and the quota system for sugar and isoglucose is abolished. Both of these sweeteners can now be produced and sold in the EU without quantity restrictions. Even before the end of the quotas in autumn 2017, the anticipation of this change already affected the European sugar market through an expansion of the beet planting area in the 2017|18 sugar marketing year (SMY). As well, high crop yields per hectare in SMY 2017|18 increased the sugar supply in the EU area. With the abolition of the quotas, a partial substitution of isoglucose for granulated sugar is also expected to occur.
The fact that the quota has expired should lead to continuing high beet sugar production, especially in prime growing regions. The European market prices are likely to correlate more closely with prices on the world market, making it possible that sugar prices will show a wide range of fluctuation. The new sugar market rules also do not provide minimum prices for sugar beet. However, beet prices will continue to be negotiated between the beet producers and the beet-using industry. The reform of the sugar regime does not involve a change in the system of import duties for sugar imports from outside the EU nor in the treatment of imports from LDC/ACP countries (Least Developed Countries and African, Caribbean and Pacific Group of States) with preferential EU agreements.
Free trade agreements: 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 individual results.
In September 2015 the EU's adoption of Directive 2015/1513 amended the EU Renewable Energy Directive. With respect to the EU target of a 40% reduction in greenhouse gas emissions by 2030 (from 1990 levels), the rules for the share of biofuels were modified.
In November 2016 the European Commission presented a new proposal that calls for a renewable energy share of at least 27% within the EU, but does not set a specific target for the transport sector. The proposal includes a reduction of biofuels made from agricultural raw materials ("first-generation", i.e. conventional, biofuels), beginning in 2021, from 7% to a maximum of 3.8% in 2030. Conversely, the use of ethanol produced from straw, wood and waste ("second-generation") is to be increased incrementally from 1.5% in 2021 to 3% by 2030.
The Council of the European Union reached agreement on 18 December 2017 on its position regarding the Commission's proposal and will enter into negotiations with the European Parliament on this basis. For the transport sector, the Council position seeks a binding target, for every member state, of at least 14% renewable energy by 2030. Renewable fuels from field crops are to be permitted at an unchanged share of up to 7%. The share of biofuels from waste and residues is to increase to at least 3%.
A changed position on these matters was adopted on 17 January 2018 by the plenary of the European Parliament with proposals for biofuel policy from 2021 to 2030 (RED II). For grain-based fuels it decided that the amount of biofuels produced in 2017 in the member states should represent the maximum reference amount, which would set the maximum share at 7% and thus maintain the status quo. Overall, however, the Parliament seeks to increase the total share of all forms of renewable energy to 12%.
The tripartite negotiations between the European Parliament, the Council of the European Union and the European Commission to decide the final form of the biofuel policy for the period from 2021 have begun. A decision is expected in the 2018 calendar year, possibly as soon as the first half of the year.
It should be noted that the current debate over the appropriate share of biofuels is narrowly focused on the reduction of greenhouse gases. Biofuel advantages that are not being taken into account are the demonstrable reduction in particulate emissions, the production of GMO-free protein feed and capture of fermentationderived carbon dioxide as by-products, and the utilisation of surplus grain as a raw material.
AGRANA is following current developments and advocating at the national and European level for a growing share of renewable fuels.
AGRANA continually monitors changes in the legal setting relevant to its businesses or to their employees that could lead to a risk situation, and takes risk management actions as necessary. Areas of law to which particular attention is devoted are antitrust, food and environmental legislation, as well as data protection, anti-money laundering and anti-terrorism finance provisions. AGRANA maintains dedicated staff positions for matters of compliance, employment law and general areas of law.
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.
AGRANA is subject to risks from movements in exchange rates, interest rates and product prices. It also has exposure to risks related to obtaining the financing required by the Group from financial institutions and/or the capital market. The Group's financing management is largely provided centrally by 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.
The AGRANA Group operates worldwide and must observe different tax regimes, levy requirements and currency regulations. Changes in provisions of the various legislators and their interpretation by local authorities can have an effect on the financial results of individual Group companies.
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 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.
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 the hedging of 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 at single-company or country level are detected early through the standardised reporting, thus allowing timely mitigative action to be taken as appro-
priate. The liquidity of the AGRANA Group is sufficiently assured for the long term through bilateral and syndicated credit lines.
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.
The financial risks are explained in detail in the notes to the consolidated financial statements, in the section "Notes on financial instruments" (from page 109).
Both through its business operations and its national and international operating environment, the AGRANA Group is exposed to non-financial risks and to risks that are not primarily financial. For example, as a globally operating processor of agricultural raw materials, climatic changes and their impacts on the availability of raw materials pose potential risks for AGRANA. With its energyintensive 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. Not least, compliance with sustainable environmental and social criteria in the upstream supply chain is also increasingly gaining significance from a risk perspective, as non-compliance would involve potential quality and reputational risks.
AGRANA has taken appropriate measures to counteract detrimental effects from non-financial risks associated with strategic and operational business conduct. These measures relate to environmental, employee and social matters and are in accordance with national and international standards for the protection of quality and reputation in the interest of the AGRANA Group (see details in the section "Non-financial information statement under section 267a Austrian Commercial Code" from page 7).
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.
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 of 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 52) 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 an annual audit plan, which is based on a Group-wide risk assessment and approved by the Management Board. 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 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.
The share capital of AGRANA Beteiligungs-AG at the balance sheet date of 28 February 2018 was € 113.5 million (28 February 2017: € 113.5 million), divided into 15,622,244 voting ordinary no-par value bearer shares (28 February 2017: 15,622,244 such 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 78.34% 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.
The Management Board is authorised until including 4 September 2020 to increase the share capital, subject to the approval of the Supervisory Board, by up to € 4,940,270.20 by issuing up to 679,796 new ordinary 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.
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.
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.
With its diversified business model and sound balance sheet, AGRANA regards itself as well positioned for the future. As a result of the current challenges in the Sugar segment, however, the Group's operating profit (EBIT) is expected to decrease significantly in the 2018|19 financial year. Revenue is projected to be in line with the year before.
| AGRANA Group | 2017 18 | 2018 19 | |||
|---|---|---|---|---|---|
| Actual | Forecast | ||||
| Revenue | €m | 2,566.3 | Steady | p | |
| EBIT | €m | 190.6 | Significant reduction | ss | |
| Investment1 | €m | 140.9 | 169 |
Total investment across the three business segments in the financial year, at approximately € 170 million, is to significantly exceed the budgeted depreciation of about € 98 million.
In the Sugar segment, AGRANA foresees decreasing sugar sales volumes and prices and therefore expects revenue to decline significantly. The ongoing cost reduction programmes will only be able to soften the margin reduction to some extent, and a significant decrease in EBIT is thus expected for the 2018|19 financial year.
The capital expenditures planned for the Sugar segment amount to approximately € 30 million. Besides asset replacement and maintenance investment, the spending will especially be directed to measures to boost revenue and efficiency.
| Sugar segment | 2017 18 | 2018 19 | ||
|---|---|---|---|---|
| Actual | Forecast | |||
| Revenue | €m | 652.6 | Significant reduction | ss |
| EBIT | €m | 34.8 | Significant reduction | ss |
| Investment1 | €m | 32.1 | 30 |
For the Starch segment, a moderate increase in revenue is forecast for the 2018|19 financial year. Sales volumes are to rise significantly, thanks also to the full utilisation of the additional corn grinding capacity in Aschach, Austria. The positive impetus for specialty products (including organic grades) and generally for starches and by-products is expected to continue. For bioethanol and starch-based saccharification products, however, sales prices are likely to decrease amid the challenging market environment, and with expected slightly rising raw material prices, a moderate decline in EBIT is thus predicted for the Starch segment.
Investment of approximately € 86 million is budgeted for the Starch segment. The largest single share of this is allocated to the expansion of the wheat starch plant in Pischelsdorf, Austria. Other planned projects are the expansion of potato processing capacity in Gmünd, Austria, and investment in productivity increases in Aschach.
| Starch segment | 2017 18 | 2018 19 | ||
|---|---|---|---|---|
| Actual | Forecast | |||
| Revenue | €m | 752.3 | Moderate increase | i |
| EBIT | €m | 80.2 | Moderate reduction | s |
| Investment1 | €m | 59.4 | 86 |
In the Fruit segment, AGRANA expects the 2018|19 financial year to bring significant growth in revenue and EBIT. Revenue of the fruit preparations business is predicted to increase, driven by rising sales volumes in all areas (particularly in non-dairy). The synergy effects in Argentina, the start of fruit preparations production in India and the planned opening of the new Chinese production site in Jiangsu, China, in November 2018 are expected to contribute to a moderate EBIT improvement in comparison with the 2017|18 financial year. In the fruit juice concentrate business, revenue and EBIT are projected to rise significantly in the new financial year.
The capital investment budgeted in the Fruit segment is approximately € 53 million. In the fruit preparations business, the construction of the second plant in China will be the largest single project; the focus in the fruit juice concentrate operations is on asset replacement and maintenance investment, production optimisation and the continuous improvement of product quality.
| Fruit segment | 2017 18 | 2018 19 | ||
|---|---|---|---|---|
| Actual | Forecast | |||
| Revenue | €m | 1,161.4 | Significant increase | ii |
| EBIT | €m | 75.6 | Significant increase | ii |
| Investment1 | €m | 49.4 | 53 |
For ever more consumers, the safeguarding and documentation of sustainable business practices along the entire product value chain is becoming a buying criterion. This has been reflected in the sourcing criteria of AGRANA's customers for a number of years. As a result of the EU Nonfinancial Reporting Directive applicable since the 2017 calendar year and of national legislation in the EU member states, the AGRANA Group is now also legally obliged to report on non-financial sustainability topics.
Since the 2012|13 financial year, AGRANA has been reporting annually on relevant matters in an integrated form. The Group as early as 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 the supply chain. The current target period runs to the end of the 2020|21 financial year. Each year the target achievement progress will continue to be reported in the non-financial information integrated in the annual report.
Consolidation methods 80
Currency translation 80
| Note | ¤000 | 2017 18 | 2016 17 |
|---|---|---|---|
| (1) | Revenue | 2,566,317 | 2,561,296 |
| (2) | Changes in inventories of finished and unfinished goods | (26,771) | 51,035 |
| (2) | Own work capitalised | 1,528 | 1,320 |
| (3) | Other operating income | 32,990 | 36,835 |
| (4) | Cost of materials | (1,716,654) | (1,828,660) |
| (5) | Staff costs | (308,082) | (288,711) |
| (6) | Depreciation, amortisation and impairment losses | (90,014) | (84,397) |
| (7) | Other operating expenses | (298,081) | (306,940) |
| (8) | Share of results of equity-accounted joint ventures | 29,395 | 30,589 |
| (9) | Operating profit [EBIT] | 190,628 | 172,367 |
| (10) | Finance income | 41,212 | 31,081 |
| (11) | Finance expense | (55,682) | (48,960) |
| Net financial items | (14,470) | (17,879) | |
| Profit before tax | 176,158 | 154,488 | |
| (12) | Income tax expense | (33,513) | (36,633) |
| Profit for the period | 142,645 | 117,855 | |
| Attributable to shareholders of the parent | 140,071 | 111,315 | |
| Attributable to non-controlling interests | 2,574 | 6,540 | |
| (13) | Earnings per share under IFRS (basic and diluted) | € 8.97 | € 7.78 |
| (13) | Earnings per share based on the number of shares at the balance sheet date |
€ 8.97 | € 7.13 |
| ¤000 | 2017 18 | 2016 17 |
|---|---|---|
| Profit for the period | 142,645 | 117,855 |
| Other comprehensive (expense)/income: | ||
| Currency translation differences | (31,851) | 11,483 |
| Available-for-sale financial assets (IAS 39) after deferred taxes | 58 | 106 |
| Cash flow hedges (IAS 39) after deferred taxes | 1,643 | 939 |
| Effects from equity-accounted joint ventures | (907) | 753 |
| (Expense)/income to be recognised | ||
| in the income statement in the future | (31,057) | 13,281 |
| Change in actuarial gains and losses on | ||
| defined benefit pension obligations and | ||
| similar liabilities (IAS 19) after deferred taxes | (100) | (3,072) |
| Effects from equity-accounted joint ventures | (4) | (3) |
| Expense that will not be recognised | ||
| in the income statement in the future | (104) | (3,075) |
| Other comprehensive (expense)/income | (31,161) | 10,206 |
| Total comprehensive income for the period | 111,484 | 128,061 |
| Attributable to shareholders of the parent | 109,889 | 122,807 |
| Attributable to non-controlling interests | 1,595 | 5,254 |
| Note | ¤000 | 2017 18 | 2016 17 |
|---|---|---|---|
| Profit for the period | 142,645 | 117,855 | |
| Depreciation, amortisation and impairment of non-current assets | 90,021 | 84,402 | |
| Reversal of impairment losses on non-current assets | (7) | (5) | |
| Losses on disposal of non-current assets | 348 | 887 | |
| Changes in non-current provisions | 1,123 | (1,951) | |
| Share of results of equity-accounted joint ventures | (29,395) | (30,589) | |
| Dividends received from equity-accounted joint ventures | 30,000 | 24,500 | |
| Dividends received from non-consolidated subsidiaries | 0 | 524 | |
| Non-cash expenses/income and other adjustments | 68,010 | 62,397 | |
| Operating cash flow before changes in working capital | 302,745 | 258,020 | |
| Changes in inventories | 16,749 | (36,236) | |
| Changes in receivables and current assets | 14,845 | 11,561 | |
| Changes in current provisions | (18,748) | 6,131 | |
| Changes in payables (excluding borrowings) | (55,967) | 50,324 | |
| Changes in working capital | (43,121) | 31,780 | |
| Interest received | 4,225 | 4,525 | |
| Interest paid | (10,788) | (13,195) | |
| Tax paid | (39,199) | (25,345) | |
| (14) | Net cash from operating activities | 213,862 | 255,785 |
| Dividends received | 33 | 40 | |
| Proceeds from disposal of non-current assets | 627 | 1,155 | |
| Purchases of property, plant and equipment | |||
| and intangible assets, net of government grants | (132,528) | (123,418) | |
| Proceeds from disposal of securities | 162 | 1 | |
| Purchases of non-current financial assets | (1,640) | (3,841) | |
| Purchases of businesses | 0 | (45,467) | |
| (15) | Net cash (used in) investing activities | (133,346) | (171,530) |
| Gross proceeds from issue of shares (i.e., capital increase) | 0 | 142,020 | |
| Costs for issue of shares (i.e., capital increase) | 0 | (2,301) | |
| (Repayment of )/proceeds from current borrowings | |||
| from affiliated companies in the Südzucker group | (100,000) | 85,000 | |
| Repayment of Schuldscheindarlehen, or bonded loan | (83,500) | 0 | |
| Proceeds from investment loan from the European Investment Bank | 41,500 | 0 | |
| Inflows/(outflows) from loans, bank overdrafts and cash advances | 58,115 | (158,111) | |
| Dividends paid | (69,808) | (57,278) | |
| (16) | Net cash (used in)/from financing activities | (153,693) | 9,330 |
| Net (decrease)/increase in cash and cash equivalents | (73,177) | 93,585 | |
| Effect of movements in foreign exchange rates on cash and cash equivalents | (4,291) | 230 | |
| (11) | Valuation-related other changes in cash and cash equivalents | 0 | (4,761) |
| Cash and cash equivalents at beginning of period | 198,429 | 109,375 | |
| Cash and cash equivalents at end of period | 120,961 | 198,429 |
at 28 February 2018
| 28 Feb 2018 |
28 Feb 2017 |
|
|---|---|---|
| ASSETS | ||
| A. Non-current assets | ||
| Intangible assets | 276,815 | 282,319 |
| Property, plant and equipment | 768,881 | 738,907 |
| Equity-accounted joint ventures | 73,228 | 72,745 |
| Securities | 18,703 | 18,826 |
| Investments in non-consolidated subsidiaries and outside companies | 894 | 1,051 |
| Receivables and other assets | 8,816 | 7,115 |
| Deferred tax assets | 13,664 | 14,334 |
| 1,161,001 | 1,135,297 | |
| B. Current assets | ||
| Inventories | 654,537 | 696,032 |
| Trade receivables and other assets | 415,568 | 442,611 |
| Current tax assets | 4,310 | 9,024 |
| Securities | 44 | 43 |
| Cash and cash equivalents | 120,961 | 198,429 |
| 1,195,420 | 1,346,139 | |
| Total assets | 2,356,421 | 2,481,436 |
| EQUITY AND LIABILITIES A. Equity |
||
| 113,531 | ||
| 540,760 | ||
| Share capital Share premium and other capital reserves Retained earnings |
742,752 | |
| Equity attributable to shareholders of the parent | 1,397,043 | |
| Non-controlling interests | 56,954 | |
| 1,453,997 | ||
| B. Non-current liabilities | ||
| Retirement and termination benefit obligations | 68,704 | |
| Other provisions | 21,607 | |
| Borrowings | 310,572 | |
| Other payables | 10,832 | |
| Deferred tax liabilities | 7,712 | |
| C. Current liabilities | 419,427 | |
| Other provisions | 29,337 | |
| Borrowings | 61,629 | |
| Trade and other payables | 378,220 | 113,531 540,760 695,375 1,349,666 62,222 1,411,888 68,929 19,898 180,495 14,211 13,102 296,635 43,454 276,681 430,009 |
| Tax liabilities | 13,811 482,997 |
22,769 772,913 |
| Attributable to the shareholders | |||||||
|---|---|---|---|---|---|---|---|
| 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 |
|
| 2017 18 | |||||||
| At 1 March 2017 | 113,531 | 540,760 | 3,237 | (1,361) | (30,211) | (25,130) | |
| Fair value movements under IAS 39 | 0 | 0 | 63 | 2,191 | 0 | 0 | |
| Changes in actuarial gains and losses on defined benefit pension obligations |
|||||||
| and similar liabilities | 0 | 0 | 0 | 0 | (385) | (4) | |
| Tax effects | 0 | 0 | (5) | (548) | 362 | 1 | |
| Currency translation loss | 0 | 0 | 0 | 0 | 0 | (910) | |
| Other comprehensive income/(expense) for the period |
0 | 0 | 58 | 1,643 | (23) | (913) | |
| Profit for the period | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total comprehensive | |||||||
| income/(expense) for the period | 0 | 0 | 58 | 1,643 | (23) | (913) | |
| Dividends paid | 0 | 0 | 0 | 0 | 0 | 0 | |
| Transfer to reserves | 0 | 0 | 0 | 0 | 0 | 0 | |
| Additional contributions | |||||||
| by other shareholders | 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 2018 | 113,531 | 540,760 | 3,295 | 282 | (30,234) | (26,043) | |
| 742,752 | |||||||
| 2016 17 | |||||||
| At 1 March 2016 | 103,210 | 411,362 | 3,131 | (2,300) | (27,170) | (25,877) | |
| Fair value movements under IAS 39 | 0 | 0 | 131 | 1,252 | 0 | 0 | |
| Changes in actuarial gains and losses | |||||||
| on defined benefit pension obligations | |||||||
| and similar liabilities | 0 | 0 | 0 | 0 | (3,562) | (3) | |
| Tax effects | 0 | 0 | (25) | (313) | 521 | 1 | |
| Currency translation gain | 0 | 0 | 0 | 0 | 0 | 749 | |
| Other comprehensive | |||||||
| income/(expense) for the period | 0 | 0 | 106 | 939 | (3,041) | 747 | |
| Profit for the period | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total comprehensive income/(expense) for the period |
0 | 0 | 106 | 939 | (3,041) | 747 | |
| Capital increase | 10,321 | 129,398 | 0 | 0 | 0 | 0 | |
| Dividends paid | 0 | 0 | 0 | 0 | 0 | 0 | |
| Transfer to reserves | 0 | 0 | 0 | 0 | 0 | 0 | |
| Additional contributions | |||||||
| by other shareholders | 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 2017 | 113,531 | 540,760 | 3,237 | (1,361) | (30,211) | (25,130) | |
| 695,375 |
Retained earnings
| Equity attributable |
|||||
|---|---|---|---|---|---|
| Non | to share- | Profit | Currency | Other | |
| controlling | holders of | for the | translation | retained | |
| interests | the parent | period | reserve | earnings | |
| 1,411,888 | 62,222 | 1,349,666 | 111,314 | (68,089) | 705,615 |
| 0 | 2,254 | 0 | 0 | 0 | |
| (104) | (389) | 0 | 0 | 0 | |
| 26 | (190) | 0 | 0 | 0 | |
| (32,758) | (901) | (31,857) | 0 | (30,947) | 0 |
| (31,161) | (979) | (30,182) | 0 | (30,947) | 0 |
| 142,645 | 2,574 | 140,071 | 140,071 | 0 | 0 |
| 111,484 | 1,595 | 109,889 | 140,071 | (30,947) | 0 |
| (69,808) | (7,319) | (62,489) | (62,489) | 0 | 0 |
| 0 | 0 | (48,825) | 0 | 48,825 | |
| 500 | 0 | 0 | 0 | 0 | |
| (36) | (37) | 0 | 0 | (37) | |
| (8) | 14 | 0 | 0 | 14 | |
| 1,453,997 | 56,954 | 1,397,043 | 140,071 | (99,036) | 754,417 |
| 1,200,124 | 55,843 | 1,144,281 | 82,723 | (80,830) | 680,032 |
| 0 | 1,383 | 0 | 0 | 0 | |
| (3,607) | (42) | (3,565) | 0 | 0 | 0 |
| 10 | 184 | 0 | 0 | 0 | |
| 12,236 | (1,254) | 13,490 | 0 | 12,741 | 0 |
| 10,206 | (1,286) | 11,492 | 0 | 12,741 | 0 |
| 117,855 | 6,540 | 111,315 | 111,315 | 0 | 0 |
| 128,061 | 5,254 | 122,807 | 111,315 | 12,741 | 0 |
| 139,719 | 0 | 139,719 | 0 | 0 | 0 |
| (57,278) | (470) | (56,808) | (56,808) | 0 | 0 |
| 0 | 0 | (25,915) | 0 | 25,915 | |
| 1,250 | 0 | 0 | 0 | 0 | |
AGRANA Beteiligungs-AG ("the Company") is the parent company of the AGRANA Group and has its registered office at Friedrich-Wilhelm-Raiffeisen-Platz 1, A-1020 Vienna. 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 2017|18 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, as well as with the additional requirements of section 245a Austrian Commercial Code (UGB).
The segment reporting, which conforms with International Financial Reporting Standard (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. The segments differ in terms of their product portfolios, production technologies, raw material procurement, and sales strategies, and are managed separately. AGRANA Beteiligungs-Aktiengesellschaft ("AGRANA Beteiligungs-AG"), the Group's holding company, is considered part of the Sugar segment.
The internal reporting for each segment is provided monthly to the Group's chief operating decision-maker (the CODM). The CODM is the Management Board of AGRANA Beteiligungs-AG. Information on the results of the reportable segments is found in the overviews below. Segment profitability is evaluated primarily on the basis of operating profit (EBIT), which is a key performance indicator in every internal management report.
In the reporting of the reportable segments to the CODM, AGRANA uses the performance indicator "operating profit before exceptional items and results of equity-accounted joint ventures". This item differs from the metric "operating profit" (EBIT) used in the consolidated income statement in that operating profit (EBIT) reflects the results of equity-accounted joint ventures and exceptional items. Exceptional items are infrequent or non-recurring expenses or income that exceed a defined amount and that do not arise in the ordinary course of business.
| 1.1. Segmentation by business activity | Consoli- | ||||
|---|---|---|---|---|---|
| €000 | Sugar | Starch | Fruit | dation | Group |
| 2017 18 | |||||
| Total revenue | 730,378 | 762,308 | 1,161,898 | (88,267) | 2,566,317 |
| Inter-segment revenue | (77,818) | (9,993) | (456) | 88,267 | 0 |
| Revenue | 652,560 | 752,315 | 1,161,442 | 0 | 2,566,317 |
| EBITDA | 64,455 | 76,486 | 113,218 | 0 | 254,159 |
| Depreciation, amortisation and | |||||
| impairment of property, plant and | |||||
| equipment and intangibles1 | (25,693) | (26,742) | (37,579) | 0 | (90,014) |
| Operating profit before exceptional items | |||||
| and results of equity-accounted joint ventures | 38,762 | 49,744 | 75,639 | 0 | 164,145 |
| Exceptional items | (2,912) | 0 | 0 | 0 | (2,912) |
| Share of results of | |||||
| equity-accounted joint ventures | (1,091) | 30,486 | 0 | 0 | 29,395 |
| Operating profit [EBIT] | 34,759 | 80,230 | 75,639 | 0 | 190,628 |
| Segment assets | 1,704,961 | 553,933 | 1,128,678 | (1,031,151) | 2,356,421 |
| Segment equity | 1,075,506 | 368,618 | 361,515 | (351,642) | 1,453,997 |
| Segment liabilities | 629,455 | 185,315 | 767,163 | (679,509) | 902,424 |
68
| Consoli- | |||||
|---|---|---|---|---|---|
| €000 | Sugar | Starch | Fruit | dation | Group |
| Purchases of property, plant and | |||||
| equipment and intangibles1 | 32,084 | 59,427 | 49,356 | 0 | 140,867 |
| Purchases of non-current financial assets | 2,000 | 0 | 140 | 0 | 2,140 |
| Total capital expenditure | 34,084 | 59,427 | 49,496 | 0 | 143,007 |
| Carrying amount of | |||||
| equity-accounted joint ventures | 13,673 | 59,555 | 0 | 0 | 73,228 |
| Number of employees | |||||
| (average full-time equivalents) | 2,109 | 959 | 5,610 | 0 | 8,678 |
| 2016 17 | |||||
| Total revenue | 748,151 | 744,194 | 1,156,035 | (87,084) | 2,561,296 |
| Inter-segment revenue | (76,230) | (10,272) | (582) | 87,084 | 0 |
| Revenue | 671,921 | 733,922 | 1,155,453 | 0 | 2,561,296 |
| EBITDA | 55,188 | 70,072 | 109,952 | 0 | 235,212 |
| Depreciation, amortisation and | |||||
| impairment of property, plant and | |||||
| equipment and intangibles1 | (24,205) | (21,997) | (38,195) | 0 | (84,397) |
| Operating profit before exceptional items | |||||
| and results of equity-accounted joint ventures | 30,983 | 48,075 | 71,757 | 0 | 150,815 |
| Exceptional items | (9,037) | 0 | 0 | 0 | (9,037) |
| Share of results of | |||||
| equity-accounted joint ventures | 2,442 | 28,147 | 0 | 0 | 30,589 |
| Operating profit [EBIT] | 24,388 | 76,222 | 71,757 | 0 | 172,367 |
| Segment assets | 1,810,662 | 500,324 | 1,172,856 | (1,002,406) | 2,481,436 |
| Segment equity | 1,049,842 | 351,922 | 361,766 | (351,642) | 1,411,888 |
| Segment liabilities | 760,820 | 148,402 | 811,090 | (650,764) | 1,069,548 |
| Purchases of property, plant and | |||||
| equipment and intangibles1 | 23,259 | 57,577 | 33,822 | 0 | 114,658 |
| Purchases of non-current financial assets | 5,000 | 0 | 91 | 0 | 5,091 |
| Total capital expenditure | 28,259 | 57,577 | 33,913 | 0 | 119,749 |
| Carrying amount of | |||||
| equity-accounted joint ventures | 12,758 | 59,987 | 0 | 0 | 72,745 |
| Number of employees | |||||
| (average full-time equivalents) | 2,107 | 893 | 5,638 | 0 | 8,638 |
The revenue and asset data represent consolidated amounts. Inter-segment charges for products and services are based on comparable market prices.
Exceptional items included restructuring expenses as well as income from the refunding of excess amounts of sugar production levies collected by the EU in the 1999|00 and 2000|01 sugar marketing years.
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 € 679,509 thousand (prior year: € 650,764 thousand) and capital consolidation of € 351,642 thousand (prior year: € 351,642 thousand).
Companies are assigned to geographic segments based on the location of their registered office.
| Revenue €000 | 2017 18 | 2016 17 |
|---|---|---|
| Austria | 1,315,930 | 1,294,680 |
| Hungary | 88,831 | 94,964 |
| Romania | 162,561 | 169,024 |
| Rest of EU | 416,140 | 425,858 |
| EU-28 | 1,983,462 | 1,984,526 |
| Rest of Europe (Bosnia and Herzegovina, Russia, Serbia, Turkey, Ukraine) | 101,680 | 96,730 |
| Other foreign countries | 481,175 | 480,040 |
| Total | 2,566,317 | 2,561,296 |
The revenue generated by the Eastern European companies was € 535,040 thousand (prior year: € 543,833 thousand), or about 20.8% (prior year: 21.2%) of total revenue. The countries defined as Eastern Europe are Bosnia and Herzegovina, Bulgaria, Czech Republic, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Turkey and Ukraine.
| Purchases of property, plant and equipment and intangibles1 €000 | 2017 18 | 2016 17 |
|---|---|---|
| Austria | 84,253 | 74,917 |
| Hungary | 8,730 | 4,846 |
| Romania | 3,054 | 3,487 |
| Rest of EU | 15,222 | 15,027 |
| EU-28 | 111,259 | 98,277 |
| Rest of Europe (Bosnia and Herzegovina, Russia, Serbia, Turkey, Ukraine) | 4,242 | 3,282 |
| Other foreign countries | 25,366 | 13,099 |
| Total | 140,867 | 114,658 |
| Standard/Interpretation | Issued by the IASB |
Effective for AGRANA from financial year |
Adopted by the EU |
|
|---|---|---|---|---|
| IAS 19 | Employee Benefits (amendment) | 7 Feb 2018 | 2019 20 | Not to date |
| IAS 28 | Investments in Associates and Joint Ventures (amendment) |
11 Sep 2014 | Postponed indefinitely |
Not to date |
| IAS 28 | Investments in Associates and Joint Ventures (amendment) |
12 Oct 2017 | 2019 20 | Not to date |
| IAS 40 | Investment Property (amendment) | 8 Dec 2016 | 2018 19 | 14 Mar 2018 |
| IFRS 2 | Share-based Payment (amendment) | 20 Jun 2016 | 2018 19 | 26 Feb 2018 |
| IFRS 4 | Insurance Contracts (amendment) | 12 Sep 2016 | 2018 19 | 3 Nov 2017 |
| Carrying amount of property, plant and equipment and intangible assets1 €000 | 2017 18 | 2016 17 |
|---|---|---|
| Austria | 416,690 | 378,983 |
| Hungary | 68,912 | 67,824 |
| Romania | 36,402 | 38,254 |
| Rest of EU | 111,208 | 110,094 |
| EU-28 | 633,212 | 595,155 |
| Rest of Europe (Bosnia and Herzegovina, Russia, Serbia, Turkey, Ukraine) | 21,698 | 22,597 |
| Other foreign countries | 129,830 | 142,500 |
| Total | 784,740 | 760,252 |
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.
In the 2017|18 financial year, the following standards became effective (i.e., their application became mandatory) for the first time. The changes had no material impacts on the presentation of AGRANA's financial position, results of operations and cash flows.
| Standard | Issued by the IASB |
Adopted by the EU |
|
|---|---|---|---|
| IAS 7 | Statement of Cash Flows (amendment) | 29 Jan 2016 | 6 Nov 2017 |
| IAS 12 | Income Taxes (amendment) | 19 Jan 2016 | 6 Nov 2017 |
| Various | Annual Improvements to IFRSs, 2014–2016 Cycle (changes to IFRS 12 became effective for 2017 18) |
8 Dec 2016 | 7 Feb 2018 |
IAS 19 Employee Benefits (amendment) 7 Feb 2018 2019|20 Not to date Under the amended standard, if an amendment, curtailment or settlement occurs in a defined benefit plan, the current service cost and the net interest for the remainder of the reporting period (after the change to the plan) must be recalculated using the actuarial assumptions that were applied in the required remeasurement of the net liability or asset. In addition, the amended standard clarifies how a plan amendment, curtailment or settlement affects the asset ceiling requirements. Provided that no events within this scope occur, the amendments are not relevant to AGRANA.
IAS 28 Investments in Associates 11 Sep 2014 Postponed Not to date No impacts on the presentation of the financial position, results of operations and cash flows are expected.
IAS 28 Investments in Associates 12 Oct 2017 2019|20 Not to date The amendment clarifies that IFRS 9 (Financial Instruments) applies to long-term interests in an associate or joint venture and Joint Ventures (amendment) that form part of the net investment in the associate or joint venture but that are not accounted for using the equity method. The amendment is not relevant to AGRANA.
IAS 40 Investment Property (amendment) 8 Dec 2016 2018|19 14 Mar 2018 The amendment is not relevant to AGRANA.
IFRS 2 Share-based Payment (amendment) 20 Jun 2016 2018|19 26 Feb 2018 The standard is not relevant to AGRANA.
IFRS 4 Insurance Contracts (amendment) 12 Sep 2016 2018|19 3 Nov 2017 The standard is not relevant to AGRANA.
| Standard/Interpretation | Issued by the IASB |
Effective for AGRANA from financial year |
Adopted by the EU |
|
|---|---|---|---|---|
| IFRS 9 | Financial Instruments | 24 Jul 2014 | 2018 19 | 22 Nov 2016 |
| IFRS 9 | Financial Instruments (amendment) | 12 Oct 2017 | 2019 20 | 22 Mar 2018 |
| IFRS 10 | Consolidated Financial Statements (amendment) |
11 Sep 2014 | Postponed indefinitely |
Not to date |
| IFRS 14 | Regulatory Deferral Accounts | 30 Jan 2014 | Postponed indefinitely |
Not to date |
| IFRS 15 | Revenue from Contracts with Customers |
28 May 2014 | 2018 19 | 22 Sep 2016 |
| IFRS 15 | Revenue from Contracts with Customers (amendment |
12 Apr 2016 | 2018 19 | 31 Oct 2017 |
| IFRS 16 | Leases | 13 Jan 2016 | 2019 20 | 31 Oct 2017 |
| IFRS 17 | Insurance Contracts | 18 May 2017 | 2021 22 | Not to date |
| Various | Annual Improvements to IFRSs, 2014–2016 Cycle |
8 Dec 2016 | 2018 19 | 7 Feb 2018 |
| Various | Annual Improvements to IFRSs, 2015–2017 Cycle |
12 Dec 2017 | 2019 20 | Not to date |
| IFRIC 22 | Foreign Currency Transactions and Advance Consideration |
8 Dec 2016 | 2018 19 | 28 Mar 2018 |
| IFRIC 23 | Uncertainty over Income Tax Treatments |
7 Jun 2017 | 2019 20 | Not to date |
IFRS 9 Financial Instruments 24 Jul 2014 2018|19 22 Nov 2016 The new rules for classifying financial assets according to the business model within which they are managed will in some cases lead to changes in measurement and presentation. Differences result primarily for investment fund units, which to date have been classified to the "available-for-sale" category. Valuation differences will in future be recognised in net financial items instead of directly in equity as before, as the payments in connection with the investment funds do not consist only of interest and principal payments. In the 2017|18 financial year, the measurement through profit or loss, if applied, would have led to an improvement of about € 0.1 million in net financial items. In future, the new rules on impairment will in some cases lead to the earlier recognition of expected losses as an expense. As a high proportion of receivables carries credit insurance, the new approach of recognising impairment for credit risks on receivables in accordance with the length of time overdue (using a provision matrix) is expected to require an additional loss allowance of only approximately € 0.2 million. In hedge accounting, in the future, more components can in some cases be included in the risk hedged, which will then slightly increase the level of hedge effectiveness.
IFRS 9 Financial Instruments (amendment) 12 Oct 2017 2019|20 22 Mar 2018 The amendment establishes that certain financial instruments with symmetrical termination and compensation clauses (prepayment features with negative compensation) that otherwise would have to be measured through profit or loss can be measured at amortised cost. The amendment is not relevant to AGRANA.
IFRS 10 Consolidated Financial Statements 11 Sep 2014 Postponed Not to date No impacts on the presentation of the financial position, results of operations and cash flows are expected.
IFRS 14 Regulatory Deferral Accounts 30 Jan 2014 Postponed Not to date The standard is not relevant to AGRANA. The European Commission has decided not to launch the endorsement process for this indefinitely interim standard but to wait for the final standard.
IFRS 15 Revenue from Contracts 28 May 2014 2018|19 22 Sep 2016 IFRS 15 establishes the principles that an entity shall apply in reporting about the nature, amount, timing, and uncertainty of with Customers 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 result in a change in equity at the transition date.
IFRS 15 Revenue from Contracts 12 Apr 2016 2018|19 31 Oct 2017 The amendment to IFRS 15 provides clarifications on the identification of performance obligations, the control of leased assets, with Customers (amendment and activities of an entity that significantly affect intellectual property. The amendment also introduces transition relief for the presentation of contracts concluded or modified before the earliest period presented. No impacts on the presentation of the financial position, results of operations and cash flows are expected.
IFRS 16 Leases 13 Jan 2016 2019|20 31 Oct 2017 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. For assets with a low value and for short-term leases, AGRANA will elect not to capitalise the lease. AGRANA uses leases for long-term rental agreements for land and buildings in administration and production. A hypothetical initial application at 28 February 2018 would result in a right-of-use asset/a lease liability of about € 37 million.
IFRS 17 Insurance Contracts 18 May 2017 2021|22 Not to date The standard is not relevant to AGRANA.
Various Annual Improvements to IFRSs, 8 Dec 2016 2018|19 7 Feb 2018 The amendments to IFRS 12 are already effective from 2017|18. The amendments to IFRS 1 and IAS 28 become effective in 2018|19. 2014–2016 Cycle No impacts on the presentation of the financial position, results of operations and cash flows are expected.
Various Annual Improvements to IFRSs, 12 Dec 2017 2019|20 Not to date No impacts on the presentation of the financial position, results of operations and cash flows are expected.
IFRIC 22 Foreign Currency Transactions 8 Dec 2016 2018|19 28 Mar 2018 No impacts on the presentation of the financial position, results of operations and cash flows are expected.
IFRIC 23 Uncertainty over 7 Jun 2017 2019|20 Not to date IFRIC 23 clarifies the accounting for uncertainties in income taxes. Judgement is to be used in determining whether tax treatments Income Tax Treatments should be considered independently or collectively. No impacts on the presentation of the financial position, results of operations and cash flows are expected.
Pages 70 to 73 provide an overview of the standards and interpretations that will become effective in the 2018|19 financial year or later. For those standards not yet adopted by the EU, the effective year for AGRANA given in the table represents the expected time of adoption. AGRANA has not early-adopted any of the new or changed standards and interpretations 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.
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 to affect these returns. 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, 62 companies besides the parent were fully consolidated in the Group financial statements (prior year: 60 companies) and 13 companies were included using the equity method (prior year: 12 companies).
An overview of the fully consolidated entities, equity-accounted joint ventures, and non-consolidated subsidiaries and joint ventures is presented below.
| 3.1. Subsidiaries and business interests at 28 February 2018 | Equity interest 28 Feb 2018 |
Equity interest 28 Feb 2017 |
||||
|---|---|---|---|---|---|---|
| Registered | In- | In | ||||
| Name of company | office | Country | Direct | direct¹ | Direct | direct¹ |
| AGRANA Beteiligungs-Aktiengesellschaft | Vienna | Austria | – | – | – | – |
| (the parent company) | ||||||
| I. Subsidiaries | ||||||
| Fully consolidated subsidiaries | ||||||
| AGRANA AGRO S.r.l. | Roman | Romania | – | 98.69% | – | 98.45% |
| AGRANA BIH Holding GmbH | Vienna | Austria | – | 75.00% | – | 75.00% |
| AGRANA BUZAU S.r.l. | Buzau | Romania | – | 98.69% | – | 98.45% |
| AGRANA d.o.o. | Brčko | Bosnia and | – | 75.00% | – | 75.00% |
| Herzegovina | ||||||
| AGRANA Fruit Argentina S.A. | Buenos Aires | Argentina | – | 99.99% | – | 99.99% |
| AGRANA Fruit Australia Pty Ltd. | Sydney | Australia | – | 100.00% | – | 100.00% |
| AGRANA Fruit Austria GmbH | Gleisdorf | Austria | – | 100.00% | – | 100.00% |
| AGRANA Fruit Brasil Indústria, Comércio, | São Paulo | Brazil | – | 100.00% | – | 100.00% |
| Importacao e Exportacao Ltda. | ||||||
| AGRANA Fruit Brasil Participacoes Ltda. | São Paulo | Brazil | – | 100.00% | – | 100.00% |
| AGRANA Fruit Dachang Co., Ltd. | Dachang | China | – | 100.00% | – | 100.00% |
| AGRANA Fruit Fiji Pty Ltd. | Sigatoka | Fiji | – | 100.00% | – | 100.00% |
| AGRANA Fruit France S.A.S. | Mitry-Mory | France | – | 100.00% | – | 100.00% |
| AGRANA Fruit Germany GmbH | Konstanz | Germany | – | 100.00% | – | 100.00% |
| AGRANA FRUIT INDIA PRIVATE LIMITED | New Delhi | India | – | 100.00% | – | 100.00% |
| AGRANA Fruit Istanbul | Istanbul | Turkey | – | 100.00% | – | 100.00% |
| Gida Sanayi ve Ticaret A.S. |
| Equity interest 28 Feb 2018 |
Equity interest 28 Feb 2017 |
|||||
|---|---|---|---|---|---|---|
| Registered | In- | In | ||||
| Name of company | office | Country | Direct | direct¹ | Direct | direct¹ |
| AGRANA Fruit (Jiangsu) Company Limited | Jiangsu | China | – | 100.00% | – | – |
| AGRANA Fruit Korea Co. Ltd. | Seoul | South Korea | – | 100.00% | – | 100.00% |
| AGRANA Fruit Latinoamerica S. de R.L. de C.V. | Michoacán | Mexico | – | 100.00% | – | 100.00% |
| AGRANA Fruit Luka TOV | Vinnytsia | Ukraine | – | 99.97% | – | 99.97% |
| AGRANA Fruit Management Australia Pty Ltd. | Sydney | Australia | – | 100.00% | – | 100.00% |
| AGRANA Fruit México, S.A. de C.V. | Michoacán | Mexico | – | 100.00% | – | 100.00% |
| AGRANA Fruit Polska SP z.o.o. | Ostrołęka | Poland | – | 100.00% | – | 100.00% |
| AGRANA Fruit S.A.S. | Mitry-Mory | France | – | 100.00% | – | 100.00% |
| AGRANA Fruit Services GmbH | Vienna | Austria | – | 100.00% | – | 100.00% |
| AGRANA Fruit Services S.A.S. | Mitry-Mory | France | – | 100.00% | – | 100.00% |
| AGRANA Fruit South Africa (Proprietary) Ltd. | Johannesburg | South Africa | – | 100.00% | – | 100.00% |
| AGRANA Fruit Ukraine TOV | Vinnytsia | Ukraine | – | 99.80% | – | 99.80% |
| AGRANA Fruit US, Inc. | Brecksville | USA | – | 100.00% | – | 100.00% |
| AGRANA Group-Services GmbH | Vienna | Austria | 100.00% | – | 100.00% | – |
| AGRANA Internationale Verwaltungs- | Vienna | Austria | – | 100.00% | – | 100.00% |
| und Asset-Management GmbH | ||||||
| AGRANA JUICE (XIANYANG) CO., LTD | Xianyang City | China | – | 50.01% | – | 50.01% |
| AGRANA Juice Sales & Marketing GmbH | Bingen | Germany | – | 50.01% | – | 50.01% |
| AGRANA Magyarország Értékesitési Kft. | Budapest | Hungary | – | 87.64% | – | 87.64% |
| AGRANA Marketing- und | Vienna | Austria | 100.00% | – | 100.00% | – |
| Vertriebsservice Gesellschaft m.b.H. | ||||||
| Agrana Nile Fruits Processing SAE | Qalyoubia | Egypt | – | 51.00% | – | 51.00% |
| AGRANA Research & Innovation | Vienna | Austria | 100.00% | – | 100.00% | – |
| Center GmbH | ||||||
| AGRANA Stärke GmbH | Vienna | Austria | 98.91% | 1.09% | 98.91% | 1.09% |
| AGRANA TANDAREI S.r.l. | Ţăndărei | Romania | – | 98.69% | – | 98.45% |
| AGRANA Trading EOOD | Sofia | Bulgaria | – | 100.00% | – | 100.00% |
| AGRANA ZHG Zucker Handels GmbH | Vienna | Austria | – | 100.00% | – | 100.00% |
| AGRANA Zucker GmbH | Vienna | Austria | 98.91% | 1.09% | 98.91% | 1.09% |
| AUSTRIA JUICE Germany GmbH | Bingen | Germany | – | 50.01% | – | 50.01% |
| AUSTRIA JUICE GmbH | Kröllendorf/ Allhartsberg |
Austria | – | 50.01% | – | 50.01% |
| AUSTRIA JUICE Hungary Kft. | Vásárosnamény | Hungary | – | 50.01% | – | 50.01% |
| AUSTRIA JUICE Poland Sp. z.o.o. | Chełm | Poland | – | 50.01% | – | 50.01% |
| AUSTRIA JUICE Romania S.r.l. | Vaslui | Romania | – | 50.01% | – | 50.01% |
| AUSTRIA JUICE Ukraine TOV | Vinnytsia | Ukraine | – | 50.01% | – | 50.01% |
| Biogáz Fejleszto Kft. | Kaposvár | Hungary | – | 87.64% | – | 87.64% |
| Dirafrost FFI N.V. | Lummen | Belgium | – | 100.00% | – | 100.00% |
| Dirafrost Maroc SARL | Laouamra | Morocco | – | 100.00% | – | 100.00% |
| Financière Atys S.A.S. | Mitry-Mory | France | – | 100.00% | – | 100.00% |
| INSTANTINA Nahrungsmittel Entwicklungs- | Vienna | Austria | 66.67% | – | 66.67% | – |
| und Produktionsgesellschaft m.b.H. | ||||||
| Koronás Irodaház Szolgáltató | Budapest | Hungary | – | 87.60% | – | 87.60% |
| Korlátolt Felelösségü Társaság | ||||||
| Magyar Cukorgyártó és Forgalmazó Zrt. | Budapest | Hungary | – | 87.60% | – | 87.60% |
| Main Process S.A. | Buenos Aires | Argentina | – | 100.00% | – | 100.00% |
| Moravskoslezské Cukrovary A.S. | Hrušovany | Czech Republic | – | 100.00% | – | 100.00% |
| o.o.o. AGRANA Fruit Moscow Region | Serpuchov | Russia | – | 100.00% | – | 100.00% |
| S.C. A.G.F.D. Tandarei s.r.l. | Ţăndărei | Romania | – | 100.00% | – | 100.00% |
| S.C. AGRANA Romania S.A. | Bucharest | Romania | – | 98.68% | – | 98.44% |
| Slovenské Cukrovary s.r.o. | Sereď | Slovakia | – | 100.00% | – | 100.00% |
| Sudinver S.A. | Buenos Aires | Argentina | – | 100.00% | – | 100.00% |
| Yube d.o.o. | Požega | Serbia | – | 100.00% | – | 100.00% |
| Equity interest 28 Feb 2018 |
Equity interest 28 Feb 2017 |
|||||
|---|---|---|---|---|---|---|
| Registered | In- | In | ||||
| Name of company | office | Country | Direct | direct¹ | Direct | direct¹ |
| Non-consolidated subsidiaries | ||||||
| AGRANA Amidi srl | Sterzing | Italy | – | 100.00% | – | 100.00% |
| Reporting date: 28 Feb 2018 I Equity: € 24.4 thousand I Profit for the period: € 7.2 thousand | ||||||
| AGRANA Croatia d.o.o. | Zagreb | Croatia | – | 100.00% | – | 100.00% |
| Reporting date: 28 Feb 2018 I Equity: € 9.8 thousand I Profit for the period: € 3.4 thousand | ||||||
| AGRANA Makedonija DOOEL Skopje | Skopje | Macedonia | – | 100.00% | – | 100.00% |
| Reporting date: 31 Dec 2017 I Equity: € 3.4 thousand I Profit for the period: € 1.3 thousand | ||||||
| AGRANA Skrob s.r.o. v likvidaci | Hrušovany | Czech Republic | – | 100.00% | – | 100.00% |
| Reporting date: 31 Dec 2017 I Equity: € 82.9 thousand I Profit for the period: € 3.7 thousand | ||||||
| DELHIA SHELF s.r.o. | Hrušovany | Czech Republic | – | – | – | 100.00% |
| Merged into Moravskoslezske Cukrovary A.S. in 2017 18 | ||||||
| Österreichische Rübensamenzucht | Vienna | Austria | – | 86.00% | – | 86.00% |
| Gesellschaft m.b.H. | ||||||
| Reporting date: 30 Apr 2017 I Equity: € 2,104.3 thousand I Profit for the period: € 189.7 thousand | ||||||
| PERCA s.r.o. | Hrušovany | Czech Republic | – | – | – | 100.00% |
| Merged into Moravskoslezske Cukrovary A.S. in 2017 18 | ||||||
| II. Joint ventures | ||||||
| Equity-accounted joint ventures | ||||||
| AGRANA-STUDEN group: | ||||||
| "AGRAGOLD" d.o.o. | Brčko | Bosnia and | – | 50.00% | – | 50.00% |
| Herzegovina | ||||||
| AGRAGOLD d.o.o. | Zagreb | Croatia | – | 50.00% | – | 50.00% |
| AGRAGOLD dooel Skopje | Skopje | Macedonia | – | 50.00% | – | 50.00% |
| AGRAGOLD trgovina d.o.o. | Ljubljana | Slovenia | – | 50.00% | – | 50.00% |
| AGRANA-STUDEN Albania sh.p.k. | Tirana | Albania | – | 50.00% | – | 50.00% |
| AGRANA-STUDEN Beteiligungs GmbH | Vienna | Austria | – | 50.00% | – | 50.00% |
| AGRANA-STUDEN Kosovo L.L.C. | Prishtina | Kosovo | – | 50.00% | – | –2 |
| AGRANA Studen Sugar Trading GmbH | Vienna | Austria | – | 50.00% | – | 50.00% |
| Company for trade and services | Belgrade | Serbia | – | 50.00% | – | 50.00% |
| AGRANA-STUDEN Serbia d.o.o. Beograd | ||||||
| STUDEN-AGRANA Rafinerija Secera d.o.o. | Brčko | Bosnia and | – | 50.00% | – | 50.00% |
| Herzegovina | ||||||
| HUNGRANA group: | ||||||
| GreenPower E85 Kft | Szabadegyháza | Hungary | – | 50.00% | – | 50.00% |
| HUNGRANA Keményitö- és | Szabadegyháza | Hungary | – | 50.00% | – | 50.00% |
| Isocukorgyártó és Forgalmazó Kft. | ||||||
| HungranaTrans Kft. | Szabadegyháza | Hungary | – | 50.00% | – | 50.00% |
| Non-consolidated joint ventures | ||||||
| SCO STUDEN & CO. BRASIL | São Paulo | Brazil | – | 50.00% | – | 50.00% |
| EXPORTACAO E IMPORTACAO LTDA. | ||||||
| Reporting date: 31 Dec 2017 I Equity: (€ 18.8 thousand) I Loss for the period: (€ 2.5 thousand) | ||||||
| AGRANA-STUDEN Kosovo L.L.C. | Prishtina | Kosovo | – | –2 | – | 50.00% |
| Equity-accounted from 2017 18 |
The number of companies that were fully consolidated or equity-accounted changed as follows in the 2017|18 financial year:
| Full consolidation |
Equity method |
|---|---|
| At 1 March 2017 60 |
12 |
| Initial consolidation 2 |
1 |
| At 28 February 2018 62 |
13 |
The newly founded AGRANA Fruit (Jiangsu) Company Limited, Changzhou, China, a wholly-owned subsidiary of AGRANA Fruit S.A.S., Mitry-Mory, France, was included in the consolidated financial statements for the first time in the financial second quarter of 2017|18, by full consolidation.
Also in the second quarter of 2017|18, AGRANA Fruit Management Australia Pty Ltd., Sydney, Australia, which previously was consolidated within the Group subsidiary AGRANA Fruit Australia Pty Ltd., Sydney, was for the first time included separately in the Group financial statements as a fully consolidated company; this had no impact on the consolidated financial statements.
As well, in the second quarter the newly founded AGRANA-STUDEN Kosovo L.L.C., Pristina, Kosovo, was included in the consolidated financial statements for the first time, using the equity method.
The information below represents the aggregated financial position and performance of the joint ventures. The joint ventures are listed from page 76.
| AGRANA | |||
|---|---|---|---|
| STUDEN | HUNGRANA | ||
| €000 | group | group | Total |
| 28 February 2018 | |||
| Non-current assets | 40,277 | 105,103 | 145,380 |
| Inventories | 21,840 | 58,380 | 80,220 |
| Receivables and other assets | 22,824 | 32,455 | 55,279 |
| Cash, cash equivalents and securities | 5,530 | 769 | 6,299 |
| Current assets | 50,194 | 91,604 | 141,798 |
| Total assets | 90,471 | 196,707 | 287,178 |
| Equity | 28,251 | 118,141 | 146,392 |
| Borrowings | 297 | 0 | 297 |
| Other liabilities | 5,107 | 2,033 | 7,140 |
| Non-current liabilities | 5,404 | 2,033 | 7,437 |
| Borrowings | 39,439 | 48,475 | 87,914 |
| Other liabilities | 17,377 | 28,058 | 45,435 |
| Current liabilities | 56,816 | 76,533 | 133,349 |
| Total equity and liabilities | 90,471 | 196,707 | 287,178 |
| Revenue | 179,555 | 319,245 | 498,800 |
| Depreciation, amortisation and impairment losses | (3,031) | (13,451) | (16,482) |
| Other (expense), net | (177,739) | (234,890) | (412,629) |
| Operating profit [EBIT] | (1,215) | 70,904 | 69,689 |
| Interest income | 1,109 | 7 | 1,116 |
| Interest expense | (1,592) | (577) | (2,169) |
| Other finance (expense), net | (338) | (638) | (976) |
| Loss/(profit) before tax | (2,036) | 69,696 | 67,660 |
| Income tax expense | (146) | (8,724) | (8,870) |
| Loss/(profit) for the period | (2,182) | 60,972 | 58,790 |
| Income or expense, net, recognised directly in equity | 12 | (1,836) | (1,824) |
| Total comprehensive (expense)/income for the period | (2,170) | 59,136 | 56,966 |
| AGRANA | |||
|---|---|---|---|
| STUDEN | HUNGRANA | ||
| €000 | group | group | Total |
| 28 February 2017 | |||
| Non-current assets | 35,247 | 105,717 | 140,964 |
| Inventories | 36,172 | 44,310 | 80,482 |
| Receivables and other assets | 29,093 | 38,844 | 67,937 |
| Cash, cash equivalents and securities | 9,704 | 615 | 10,319 |
| Current assets | 74,969 | 83,769 | 158,738 |
| Total assets | 110,216 | 189,486 | 299,702 |
| Equity | 26,421 | 119,005 | 145,426 |
| Borrowings | 285 | 0 | 285 |
| Other liabilities | 489 | 2,319 | 2,808 |
| Non-current liabilities | 774 | 2,319 | 3,093 |
| Borrowings | 42,006 | 35,006 | 77,012 |
| Other liabilities | 41,015 | 33,156 | 74,171 |
| Current liabilities | 83,021 | 68,162 | 151,183 |
| Total equity and liabilities | 110,216 | 189,486 | 299,702 |
| Revenue | 198,162 | 329,680 | 527,842 |
| Depreciation, amortisation and impairment losses | (2,647) | (13,499) | (16,146) |
| Other (expense), net | (189,579) | (247,857) | (437,436) |
| Operating profit [EBIT] | 5,936 | 68,324 | 74,260 |
| Interest income | 1,133 | 7 | 1,140 |
| Interest expense | (1,612) | (660) | (2,272) |
| Other finance (expense), net | (203) | (63) | (266) |
| Profit before tax | 5,254 | 67,608 | 72,862 |
| Income tax expense | (369) | (11,316) | (11,685) |
| Profit for the period | 4,885 | 56,292 | 61,177 |
| Income or expense, net, recognised directly in equity | 25 | 1,475 | 1,500 |
| Total comprehensive income for the period | 4,910 | 57,767 | 62,677 |
The calculation of the carrying amounts of the investments in equity-accounted joint ventures is tabulated below:
| AGRANA | |||
|---|---|---|---|
| STUDEN | HUNGRANA | ||
| €000 | group | group | Total |
| 28 February 2018 | |||
| Equity | 28,251 | 118,141 | 146,392 |
| Of which attributable to AGRANA | 14,126 | 59,071 | 73,196 |
| Value change at time of transition from | |||
| proportionate consolidation to equity method | (452) | 484 | 32 |
| Investments in equity-accounted joint ventures (carrying amount) | 13,674 | 59,555 | 73,228 |
| Dividend attributable to AGRANA | 0 | 30,000 | 30,000 |
| 28 February 2017 | |||
| Equity | 26,421 | 119,005 | 145,426 |
| Of which attributable to AGRANA | 13,211 | 59,502 | 72,713 |
| Value change at time of transition from | |||
| proportionate consolidation to equity method | (452) | 484 | 32 |
| Investments in equity-accounted joint ventures (carrying amount) | 12,759 | 59,986 | 72,745 |
| Dividend attributable to AGRANA | 0 | 24,500 | 24,500 |
Of the non-controlling interests of € 56,954 thousand (prior year: € 62,222 thousand), most represented the co-owners of the AUSTRIA JUICE group, at € 37,523 thousand (prior year: € 43,377 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:
| 28 Feb | 28 Feb | |
|---|---|---|
| AUSTRIA JUICE group €000 | 2018 | 2017 |
| Non-current assets | 129,161 | 128,775 |
| Current assets | 198,148 | 208,795 |
| Total assets | 327,309 | 337,570 |
| Non-current liabilities | 4,309 | 6,304 |
| Current liabilities | 240,659 | 237,215 |
| Total liabilities | 244,968 | 243,519 |
| Net assets | 82,341 | 94,051 |
| Revenue | 235,208 | 243,634 |
| Operating profit [EBIT] | 8,188 | 12,830 |
| Profit before tax | 4,247 | 7,069 |
| Income tax expense | (1,696) | (647) |
| Profit for the period | 2,551 | 6,422 |
| Other comprehensive (expense)/income | (259) | 435 |
| Total comprehensive income for the period | 2,292 | 6,857 |
| Net cash from operating activities | 52,268 | 46,467 |
| Net cash (used in) investing activities | (12,413) | (7,501) |
| Net cash (used in) financing activities | (39,935) | (64,975) |
| Net (decrease) in cash and cash equivalents | (80) | (26,009) |
The table below shows the interests of the non-controlling shareholders in the AUSTRIA JUICE group:
| AUSTRIA JUICE group €000 | 28 Feb 2018 |
28 Feb 2017 |
|---|---|---|
| Non-controlling interests in: | ||
| Profit for the period | 1,275 | 3,210 |
| Carrying amount of net assets | 41,162 | 47,016 |
| Goodwill | (3,639) | (3,639) |
| Non-controlling interest in net assets | 37,523 | 43,377 |
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.
█ 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.
█ 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.
█ In translating the financial statements of foreign Group companies, the following exchange rates were applied:
| Rate at reporting date | Average rate for year | ||||
|---|---|---|---|---|---|
| ¤ | Currency | 28 Feb | 28 Feb | ||
| 2018 | 2017 | 2017 18 | 2016 17 | ||
| Albania | ALL | 132.23 | 135.08 | 133.66 | 136.98 |
| Argentina | ARS | 24.55 | 16.36 | 19.93 | 16.52 |
| Australia | AUD | 1.56 | 1.38 | 1.50 | 1.46 |
| Bosnia and Herzegovina | BAM | 1.96 | 1.96 | 1.96 | 1.96 |
| Brazil | BRL | 3.96 | 3.28 | 3.71 | 3.69 |
| Bulgaria | BGN | 1.96 | 1.96 | 1.96 | 1.96 |
| China | CNY | 7.73 | 7.28 | 7.71 | 7.37 |
| Croatia | HRK | 7.45 | 7.44 | 7.46 | 7.51 |
| Czech Republic | CZK | 25.42 | 27.02 | 26.05 | 27.03 |
| Denmark | DKK | 7.45 | 7.43 | 7.44 | 7.44 |
| Rate at reporting date | Average rate for year | ||||
|---|---|---|---|---|---|
| ¤ | Currency | 28 Feb | 28 Feb | ||
| 2018 | 2017 | 2017 18 | 2016 17 | ||
| Egypt | EGP | 21.52 | 16.64 | 20.54 | 12.73 |
| Fiji | FJD | 2.49 | 2.19 | 2.38 | 2.29 |
| Hungary | HUF | 313.93 | 308.25 | 309.57 | 310.83 |
| India | INR | 79.62 | 70.63 | 74.64 | 73.91 |
| Macedonia | MKD | 61.66 | 61.52 | 61.58 | 61.58 |
| Mexico | MXN | 22.94 | 21.08 | 21.48 | 21.00 |
| Morocco | MAD | 11.30 | 10.67 | 11.03 | 10.83 |
| Poland | PLN | 4.18 | 4.32 | 4.23 | 4.35 |
| Romania | RON | 4.66 | 4.52 | 4.59 | 4.49 |
| Russia | RUB | 68.75 | 61.76 | 67.03 | 70.57 |
| Serbia | CSD | 118.06 | 123.91 | 120.52 | 123.30 |
| South Africa | ZAR | 14.37 | 13.79 | 15.13 | 15.71 |
| South Korea | KRW | 1,320.25 | 1,194.24 | 1,289.34 | 1,268.98 |
| Turkey | TRY | 4.65 | 3.84 | 4.24 | 3.46 |
| Ukraine | UAH | 33.15 | 28.64 | 30.90 | 28.41 |
| USA | USD | 1.22 | 1.06 | 1.16 | 1.10 |
█ 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 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. This review is performed regularly at 31 August, and additionally whenever there are indications of possible impairment (triggering events). Details on this impairment test are presented in the notes to the balance sheet.
█ 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. In the conversion costs of internally generated assets, besides materials and labour costs, prorated overheads are capitalised. 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 its fair value at the inception of the rental period or lease and 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 |
█ 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 straight-line basis over the useful life of the allocated asset through profit or loss. Details are provided on page 99.
█ The AGRANA Group distinguishes the following classes of financial instruments:
█ 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.
█ 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 from page 111.
█ Receivables are initially recognised at fair value and subsequently measured at amortised cost. Non-interest-bearing 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.
█ 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.
█ 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.
█ 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.
█ Assets (other than inventories and deferred tax assets) are reviewed at every balance sheet date for evidence of impairment. When there are indications of impairment, an impairment test is performed on the assets in question. Goodwill and other intangible assets with an indefinite useful life are tested 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.
█ 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.
█ 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 1.7% for the year under review (prior year: 1.6%).
█ 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. Likewise, the qualifying insurance policies are treated as plan assets in reducing the present value of the respective pension and termination benefit obligation.
█ 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 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 personnel-related 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 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.
█ 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 offset 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.
█ 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.
█ 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:
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 5.60% to 8.50% (prior year: 4.94% to 8.55%).
| Pension benefits | Termination benefits | ||||
|---|---|---|---|---|---|
| 28 Feb | 28 Feb | 28 Feb | 28 Feb | ||
| €000 | 2018 | 2017 | 2018 | 2017 | |
| Change in actuarial assumptions | |||||
| Discount rate | |||||
| +0.5 percentage points | (2,225) | (2,458) | (1,752) | (1,628) | |
| –0.5 percentage points | 2,443 | 2,704 | 1,889 | 1,743 | |
| Wage and salary increase | |||||
| +0.25 percentage points | 76 | 77 | 907 | 848 | |
| –0.25 percentage points | (75) | (76) | (878) | (819) | |
| Pension increase | |||||
| +0.25 percentage points | 1,089 | 1,184 | – | – | |
| –0.25 percentage points | (1,046) | (1,137) | – | – | |
| Life expectancy | |||||
| Increase by 1 year | 4,006 | 3,721 | – | – | |
| Decrease by 1 year | (4,213) | (3,833) | – | – |
█ The HUNGRANA group and AGRANA-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.
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| By nature of activity | ||
| Revenue from sale of finished goods | 2,404,309 | 2,373,968 |
| Revenue from sale of goods purchased for resale | 152,903 | 180,515 |
| Service revenue | 9,105 | 6,813 |
| Total | 2,566,317 | 2,561,296 |
The regional analysis of revenue is presented in the section "Segment reporting" (on page 70).
The Group's top ten customers accounted for 28% (prior year: 26%) of consolidated revenue. One AGRANA customer accounted for 12% (prior year: 12%) of consolidated revenue. No other customer represented more than 10% of revenue.
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Changes in inventories of finished and unfinished goods | (26,771) | 51,035 |
| Own work capitalised | 1,528 | 1,320 |
The change in inventories of finished and unfinished goods amounted to a net decrease of € 26,771 thousand (prior year: increase of € 51,035 thousand). The change reflected mainly the Sugar segment with a decrease of € 33,686 thousand (prior year: increase of € 67,100 thousand), and the Fruit segment, with an increase of € 5,179 thousand (prior year: decrease of € 22,438 thousand).
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Income from | ||
| Currency translation gains | 7,860 | 9,520 |
| Derivatives | 3,444 | 1,512 |
| Adjustment of payables from the acquisition of subsidiaries | 2,460 | 0 |
| Exceptional income | 1,885 | 3,998 |
| Services rendered to third parties | 1,735 | 1,388 |
| Income from research incentive | 1,048 | 673 |
| Income from the release of provisions for impairment of trade receivables | 1,039 | 1,032 |
| Insurance benefits and payments for damages | 917 | 3,870 |
| Beet and pulp cleaning, transport and handling | 581 | 1,207 |
| Rent and leases | 513 | 622 |
| Disposal of non-current assets other than financial assets | 428 | 502 |
| Other items | 11,080 | 12,511 |
| Total | 32,990 | 36,835 |
Within other operating income, "other items" represent, among others, revenue from the pass-through of costs for consumables, raw materials and services.
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Costs of | ||
| Raw materials | 1,126,832 | 1,177,583 |
| Consumables and goods purchased for resale | 519,103 | 578,972 |
| Purchased services | 70,719 | 72,105 |
| Total | 1,716,654 | 1,828,660 |
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Wages and salaries | 243,058 | 226,139 |
| Social security contributions, retirement benefit expenses | ||
| and other staff costs | 65,024 | 62,572 |
| Total | 308,082 | 288,711 |
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 € 1,088 thousand (prior year: € 1,196 thousand) is included in net financial items. The current and past service costs are included in staff costs.
In the 2017|18 financial year an expense of € 18,070 thousand (prior year: € 17,409 thousand) was recognised for contributions to government pension plans.
€ 1,139 thousand of contributions to a defined contribution termination benefit fund were recognised in the income statement for the year (prior year: € 1,018 thousand).
Average number of employees during the financial year (average full-time equivalents):
| 2017 18 | 2016 17 | |
|---|---|---|
| By employee category | ||
| Wage-earning staff | 6,050 | 6,125 |
| Salaried staff | 2,544 | 2,431 |
| Apprentices | 84 | 82 |
| Total | 8,678 | 8,638 |
| 2017 18 | 2016 17 | |
|---|---|---|
| By region | ||
| Austria | 2,171 | 2,083 |
| Hungary | 435 | 430 |
| Romania | 603 | 601 |
| Rest of EU | 1,530 | 1,555 |
| EU-28 | 4,739 | 4,669 |
| Rest of Europe (Bosnia and Herzegovina, Russia, Serbia, Turkey, Ukraine) | 1,205 | 1,359 |
| Other foreign countries | 2,734 | 2,610 |
| Total | 8,678 | 8,638 |
The average number of employees of joint ventures in full-time equivalents over the year was as follows (reported at company totals, not proportionately):
| 2017 18 | 2016 17 | |
|---|---|---|
| By employee category | ||
| Wage-earning staff | 336 | 318 |
| Salaried staff | 198 | 188 |
| Total | 534 | 506 |
| Amorti- | of | |||
|---|---|---|---|---|
| sation, | Impair- | impair | ||
| depre- | ment | ment | ||
| €000 | Total | ciation | losses | losses |
| 2017 18 | ||||
| Intangible assets | 4,531 | 4,531 | 0 | 0 |
| Property, plant and equipment | 85,483 | 85,387 | 103 | (7) |
| Recognised in operating profit before exceptional items | ||||
| and results of equity-accounted joint ventures | 90,014 | 89,918 | 103 | (7) |
| 2016 17 | ||||
| Intangible assets | 5,414 | 5,414 | 0 | 0 |
| 78,983 | 78,657 | 331 | (5) | |
| Property, plant and equipment | ||||
| Recognised in operating profit before exceptional items |
| Impairment losses and reversals of impairment losses, by segment, were as follows: | Reversal | |
|---|---|---|
| of | ||
| €000 | Impair- ment losses |
impair ment losses |
| 2017 18 | ||
| Sugar segment | 0 | 0 |
| Starch segment | 0 | (7) |
| Fruit segment | 103 | 0 |
| Group | 103 | (7) |
| 2016 17 | ||
|---|---|---|
| Sugar segment | 287 | 0 |
| Starch segment | 0 | (5) |
| Fruit segment | 44 | 0 |
| Group | 331 | (5) |
The impairment losses in the Fruit segment related principally to expenses for retired assets.
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Selling and freight costs | 143,288 | 141,350 |
| Operating and administrative expenses | 99,534 | 93,204 |
| Advertising expenses | 10,592 | 8,220 |
| Rent and lease expenses | 10,073 | 10,551 |
| Other taxes | 7,295 | 6,688 |
| Currency translation losses | 7,228 | 7,640 |
| Exceptional items | 4,797 | 13,035 |
| Derivatives | 3,122 | 2,400 |
| Damage payments | 1,198 | 1,443 |
| Research and development expenses (external) | 785 | 739 |
| Losses on disposal of non-current assets | 776 | 1,987 |
| Production levy | 0 | 3,761 |
| Other items | 9,393 | 15,922 |
| Total | 298,081 | 306,940 |
Internal and external R&D costs totalled € 17,002 thousand (prior year: € 15,852 thousand).
Within other operating expenses, "other items" included, for instance, provisions and other purchased services.
The costs incurred in the financial year for the external auditor, KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, were € 454 thousand (prior year: € 741 thousand). Of this total, € 363 thousand (prior year: € 384 thousand) related to the audit of the consolidated financial statements (including the audit of the separate financial statements of individual subsidiaries), € 17 thousand (prior year: € 234 thousand) was for other assurance services, and € 74 thousand (prior year: € 123 thousand) represented other non-audit services.
The share of results of equity-accounted joint ventures of € 29,395 thousand (prior year: € 30,589 thousand) included the Group's share of the profits or losses of the joint ventures in the HUNGRANA group and the AGRANA-STUDEN group.
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Operating profit before exceptional items and | ||
| results of equity-accounted joint ventures | 164,145 | 150,815 |
| Exceptional items | (2,912) | (9,037) |
| Share of results of equity-accounted joint ventures | 29,395 | 30,589 |
| Total | 190,628 | 172,367 |
Exceptional items – presented separately only in the segment reporting – included restructuring expenses as well as income from the refunding of excess amounts of sugar production levies collected by the EU in the 1999|00 and 2000|01 sugar marketing years. The related amounts recognised in the consolidated income statement were € 1,885 thousand (prior year: € 3,998 thousand) within other operating income and € 4,797 thousand (prior year: € 13,035 thousand) within other operating expenses.
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Interest income | 2,613 | 2,861 |
| Currency translation gains | 11,276 | 17,723 |
| Income from non-consolidated subsidiaries and outside companies | 34 | 565 |
| Gains on derivatives | 26,803 | 9,156 |
| Miscellaneous finance income | 486 | 776 |
| Total | 41,212 | 31,081 |
Interest income by segment was as follows:
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Sugar segment | 1,508 | 1,561 |
| Starch segment | 38 | 42 |
| Fruit segment | 1,067 | 1,258 |
| Group | 2,613 | 2,861 |
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Interest expense | 10,959 | 13,509 |
| Net interest on provisions for pensions and termination benefits | 1,088 | 1,196 |
| Currency translation losses | 25,919 | 13,018 |
| Losses on derivatives | 14,400 | 13,329 |
| Miscellaneous finance expense | 3,316 | 7,908 |
| Total | 55,682 | 48,960 |
Interest expense by segment was as follows:
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Sugar segment | 10,216 | 11,358 |
| Starch segment | 47 | 40 |
| Fruit segment | 696 | 2,111 |
| Group | 10,959 | 13,509 |
Interest expense includes the interest component of € 107 thousand (prior year: € 124 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 € 14,643 thousand (prior year: gain of € 4,705 thousand). This was composed of a realised loss of € 2,565 thousand (prior year: realised gain of € 743 thousand) and an unrealised loss of € 12,078 thousand (prior year: unrealised gain of € 3,962 thousand). The net translation loss was attributable primarily to foreign currency financings in Argentina and Brazil (euro and US dollar financings) and US dollar credit balances in the euro area.
In the prior year the item "miscellaneous finance expense" included a non-recurring expense of € 4,761 thousand as a result of an impairment charge on cash and cash equivalents in Ukraine in the Fruit segment.
Current and deferred tax expenses and credits pertained to Austrian and foreign income taxes and had the following composition:
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Current tax expense | 35,980 | 36,755 |
| Of which Austrian | 14,498 | 11,575 |
| Of which foreign | 21,482 | 25,180 |
| Deferred tax (benefit) | (2,467) | (122) |
| Of which Austrian | (532) | (135) |
| Of which foreign | (1,935) | 13 |
| Total tax expense | 33,513 | 36,633 |
| Of which Austrian | 13,966 | 11,440 |
| Of which foreign | 19,547 | 25,193 |
Reconciliation of the deferred tax amounts in the balance sheet to the deferred taxes in the income statement:
| €000 | 2016 17 | |
|---|---|---|
| (Decrease) in deferred tax assets in the consolidated balance sheet | (670) | (539) |
| Decrease/(increase) in deferred tax liabilities in the consolidated balance sheet | 5,390 | (8,621) |
| Total change in deferred taxes before changes in scope of consolidation | (9,160) | |
| Of which changes in scope of consolidation, recognised directly in equity | (9,690) | |
| Of which recognised in other comprehensive income (remeasurement, cash flow hedges and IAS 19) | 193 | |
| Of which currency translation, and other | 215 | |
| Of which recognised in the income statement | 2,467 | 122 |
Reconciliation of profit before tax to income tax expense:
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Profit before tax | 176,158 | 154,488 |
| Standard Austrian tax rate | 25% | 25% |
| Nominal tax expense at standard Austrian rate | 44,040 | 38,622 |
| Tax effect of: | ||
| Different tax rates applied on foreign income | (3,226) | (1,690) |
| Tax-exempt income and tax deductions, | ||
| including results of equity-accounted joint ventures | (8,649) | (9,441) |
| Non-temporary differences from consolidation measures | (1,593) | 0 |
| Non-tax-deductible expenses and additional tax debits | 4,245 | 4,405 |
| Effects of unrecognized tax loss carryforwards in respect of the financial year | (493) | 102 |
| Non-recurring tax expenses | (811) | 4,635 |
| Income tax expense | 33,513 | 36,633 |
| Effective tax rate | 19.0% | 23.7% |
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 Marketing- und Vertriebsservice Gesellschaft mbH, 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. € 12,589 thousand (prior year: € 13,902 thousand) of potential tax assets were not recognised. These related to cumulative unused tax loss carryforwards of € 53,898 thousand (prior year: € 60,871 thousand). Of the unused tax loss carryforwards, € 31,486 thousand (prior year: € 31,175 thousand) can be carried forward indefinitely, € 13,538 thousand (prior year: € 26,786 thousand) expire in two to four years and € 8,874 thousand (prior year: € 2,910 thousand) expire in five to seven years.
At the balance sheet date the deferred tax assets and liabilities recognised directly in equity amounted to a net asset of € 7,228 thousand (prior year: € 7,392 thousand).
For temporary differences on investments in subsidiaries, deferred tax liabilities of € 219,864 thousand (prior year: € 211,264 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.
| 2017 18 | 2016 17 | ||
|---|---|---|---|
| Profit for the period attributable to shareholders | |||
| of the parent (AGRANA Beteiligungs-AG) | €000 | 140,071 | 111,315 |
| Average number of shares outstanding | 15,622,244 | 14,301,709 | |
| Earnings per share under IFRS (basic and diluted) | € | 8.97 | 7.78 |
| Dividend per share | € | 4.501 | 4.00 |
Based on the number of shares outstanding at the balance sheet date, earnings per share were as follows:
| 2017 18 | 2016 17 | ||
|---|---|---|---|
| Number of shares outstanding at the balance sheet date | 15,622,244 | 15,622,244 | |
| Earnings per share | € | 8.97 | 7.13 |
Subject to the Annual General Meeting's approval of the proposed allocation of profit for the 2017|18 financial year, AGRANA Beteiligungs-AG will pay a dividend of € 70,300 thousand (prior year: € 62,489 thousand).
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.
There were no restrictions on access to cash and cash equivalents of subsidiaries as a result of currency legislation (prior year: € 16,887 thousand).
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.
Operating cash flow before changes in working capital was € 302,745 thousand (prior year: € 258,020 thousand), or 11.80% of revenue (prior year: 10.07%). Within "non-cash expenses/income and other adjustments", non-cash expenses/ income consisted mainly of the unrealised currency translation losses of € 12,079 thousand (prior year: unrealised translation gains of € 3,962 thousand) reflected in net financial items, a valuation decrease of € 2,466 thousand on payables from the acquisition of subsidiaries, a non-cash expense of € 589 thousand (prior year: € 284 thousand) for impairment on receivables, and non-cash inventory write-downs of € 8,756 thousand (prior year: € 4,640 thousand). The component "other adjustments" concerned corrections of the tax expense and net interest expense as a consequence of the separate presentation of that portion of interest and income taxes which represents cash flows. After changes in working capital and after cash flows from interest and taxes, net cash from operating activities was € 213,864 thousand (prior year: € 255,785 thousand).
The reduction of € 38,184 thousand in net cash used in investing activities (from € 171,530 thousand to € 133,346 thousand) resulted largely from the fact that the prior year included payments of € 45,467 thousand for the acquisition of two Argentine subsidiaries. Outflows for investment in property, plant and equipment and intangibles increased only slightly, by € 9,110 thousand to € 132,528 thousand (prior year: € 123,418 thousand). AGRANA's share (€ 1,500 thousand) of the capital contribution in the AGRANA-STUDEN group is included in purchases of non-current financial assets; in the prior year this item included AGRANA's share (€ 3,750 thousand) of the capital increase of the AGRANA-STUDEN group.
Proceeds from the disposal of non-current assets amounted to € 627 thousand (prior year: € 1,155 thousand).
Borrowings (net of unrealised currency translation losses) rose by € 58,115 thousand in the 2017|18 financial year (prior year: reduction of € 158,111 thousand). The positive cash flow from borrowings was driven primarily by the fact that, in the year under review, the raising of two long-term financings totalling € 100,000 thousand more than offset the combination of a loan repayment of € 25,500 thousand to the non-controlling shareholder and the repayment of cash advances, bank overdrafts and maturing bank loans. The significantly higher cash outflows in the prior year were explained mainly by the repayment of two syndicated loans in a total amount of € 111,100 thousand.
In the year under review, net cash used in financing activities rose substantially, reflecting the net effect of the repayment of € 100,000 thousand of borrowings from affiliated companies of the Südzucker Group, the raising of an investment loan of € 41,500 thousand from the European Investment Bank, and the repayment of a Schuldscheindarlehen (bonded loan) of € 83,500 thousand (prior year: loan increase of € 85,000 thousand, and inflow of € 139,719 thousand from the cash capital increase).
Dividends paid consisted mainly of the cash dividend distributed to the shareholders of AGRANA Beteiligungs-AG.
The following table presents the changes in liabilities arising from financing activities:
| Carrying amount |
Cash inflows/ |
Currency translation |
Carrying amount |
|
|---|---|---|---|---|
| at 1 Mar | (cash | differ- | at 28 Feb | |
| ¤000 | 2017 | outflows) | ences | 2018 |
| Schuldscheindarlehen, i.e., bonded loan | 42,500 | 0 | 0 | 42,500 |
| Borrowings from affiliated companies | ||||
| in the Südzucker group | 115,000 | 0 | 0 | 115,000 |
| Investment loan from European Investment Bank | 0 | 41,500 | 0 | 41,500 |
| Loans | 22,995 | 88,727 | (150) | 111,572 |
| Non-current borrowings | 180,495 | 130,227 | (150) | 310,572 |
| Schuldscheindarlehen, i.e., bonded loan | 83,500 | (83,500) | 0 | 0 |
| Borrowings from affiliated companies | ||||
| in the Südzucker group | 135,000 | (100,000) | 0 | 35,000 |
| Bank overdrafts and cash advances | 58,181 | (30,612) | (940) | 26,629 |
| Current borrowings | 276,681 | (214,112) | (940) | 61,629 |
| 9.1. Intangible assets, including goodwill | Concessions, licences and similar |
||
|---|---|---|---|
| €000 | Goodwill | rights | Total |
| 2017 18 | |||
| Cost | |||
| At 1 March 2017 | 260,974 | 106,256 | 367,230 |
| Currency translation differences | (18) | (4,400) | (4,418) |
| Additions | 0 | 2,398 | 2,398 |
| Reclassifications | 0 | (136) | (136) |
| Disposals | 0 | (1,418) | (1,418) |
| At 28 February 2018 | 260,956 | 102,700 | 363,656 |
| Accumulated amortisation and impairment | |||
| At 1 March 2017 | 0 | 84,911 | 84,911 |
| Currency translation differences | 0 | (1,183) | (1,183) |
| Amortisation for the period | 0 | 4,531 | 4,531 |
| Disposals | 0 | (1,418) | (1,418) |
| At 28 February 2018 | 0 | 86,841 | 86,841 |
| Carrying amount at 28 February 2018 | 260,956 | 15,859 | 276,815 |
| 2016 17 Cost |
|||
| At 1 March 2016 | 226,202 | 95,308 | 321,510 |
| Currency translation differences | (5) | 823 | 818 |
| Changes in scope of consolidation/other changes | 34,777 | 8,924 | 43,701 |
| Additions | 0 | 1,215 | 1,215 |
| Reclassifications | 0 | 392 | 392 |
| Disposals | 0 | (406) | (406) |
| At 28 February 2017 | 260,974 | 106,256 | 367,230 |
| Accumulated amortisation and impairment | |||
| At 1 March 2016 | 0 | 79,549 | 79,549 |
| Currency translation differences | 0 | 335 | 335 |
| Amortisation for the period | 0 | 5,414 | 5,414 |
| Reclassifications | 0 | 2 | 2 |
| Disposals | 0 | (389) | (389) |
| At 28 February 2017 | 0 | 84,911 | 84,911 |
| Carrying amount at 28 February 2017 | 260,974 | 21,345 | 282,319 |
█ Intangible assets consist largely of acquired customer relationships, software, patents and similar rights.
█ The additions of € 2,398 thousand (prior year: € 1,215 thousand) of intangible assets related primarily to software.
█ Of the total carrying amount of goodwill, the Fruit segment accounted for € 239,239 thousand (prior year: € 239,257 thousand), the Sugar segment for € 20,111 thousand (prior year: € 20,111 thousand) and the Starch segment for € 1,606 thousand (prior year: € 1,606 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 cashgenerating 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 6.75% (prior year: 7.0%) 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 1.23 (prior year: 1.40).
█ The cost of debt capital is calculated as the risk-free rate, the inflation differential, and the credit spread determined by reference to the capital market.
The following table presents the carrying amounts of the goodwill and the respective discount rate (WACC):
| Goodwill | WACC before tax | |||
|---|---|---|---|---|
| 28 Feb 28 Feb |
||||
| 2018 | 2017 | 2017 18 | 2016 17 | |
| €m | €m | % | % | |
| Fruit CGU | 239 | 239 | 8.50 | 8.55 |
| Starch CGU | 2 | 2 | 5.60 | 4.94 |
| Sugar CGU | 20 | 20 | 6.35 | 6.71 |
| Group | 261 | 261 | – | – |
█ 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 most important forecast assumptions for the Sugar CGU are the estimates of EU beet sugar production and isoglucose production, of the trajectories of sugar imports and exports, and of sugar prices. The major cost elements for the CGU are raw material and energy costs. Besides the current market developments, these projections also take into consideration internal estimates by the respective businesses.
█ With the elimination of the quota and minimum beet price regulations in 2017, the restrictions on sugar exports also ended. Market prices in the EU are now even more strongly determined by world market prices. In the near term, the current low level of world market prices is thus a negative factor. We expect global sugar consumption to continue to rise from currently just over 180 million tonnes to more than 200 million tonnes by 2025. The resulting prospective balance of production volume and sales volume supports the sugar world market price in the medium to longer term.
█ The values in use were subjected to a sensitivity analysis. The results are presented from page 86.
█ 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 | Land, | Fixtures, | Assets | ||
|---|---|---|---|---|---|
| leasehold | Plant | furniture | under | ||
| rights and | and | and | con- | ||
| €000 | buildings | machinery | equipment | struction | Total |
| 2017 18 | |||||
| Cost | |||||
| At 1 March 2017 | 583,766 | 1,177,328 | 206,368 | 69,388 | 2,036,850 |
| Currency translation differences | (15,902) | (18,171) | (4,291) | (799) | (39,163) |
| Changes in scope of consolidation/ | |||||
| other changes | 144 | 0 | 0 | 0 | 144 |
| Additions | 21,718 | 67,537 | 11,437 | 37,777 | 138,469 |
| Reclassifications | 5,702 | 49,029 | 4,311 | (58,906) | 136 |
| Disposals | (1,023) | (4,905) | (5,087) | (722) | (11,737) |
| Government grants | (173) | (634) | (64) | 0 | (871) |
| At 28 February 2018 | 594,232 | 1,270,184 | 212,674 | 46,738 | 2,123,828 |
| Accumulated depreciation and impairment | |||||
| At 1 March 2017 | 311,939 | 825,732 | 159,178 | 1,094 | 1,297,943 |
| Currency translation differences | (4,769) | (9,676) | (3,230) | 9 | (17,666) |
| Changes in scope of consolidation/ | |||||
| other changes | 94 | 0 | 0 | 0 | 94 |
| Depreciation for the period | 16,843 | 54,036 | 14,508 | 0 | 85,387 |
| Impairment | 80 | 23 | 0 | 0 | 103 |
| Reclassifications | 47 | 0 | 0 | (47) | 0 |
| Disposals | (826) | (4,545) | (4,846) | (690) | (10,907) |
| Reversal of impairment losses | 0 | 0 | 0 | (7) | (7) |
| At 28 February 2018 | 323,408 | 865,570 | 165,610 | 359 | 1,354,947 |
| Carrying amount at 28 February 2018 | 270,824 | 404,614 | 47,064 | 46,379 | 768,881 |
| 2016 17 | |||||
| Cost | |||||
| At 1 March 2016 | 554,921 | 1,154,278 | 192,260 | 23,587 | 1,925,046 |
| Currency translation differences | 7,111 | 6,054 | 3,333 | 432 | 16,930 |
| Changes in scope of consolidation/ | |||||
| other changes | 13,545 | 7,375 | 167 | 106 | 21,193 |
| Additions | 6,933 | 32,572 | 11,487 | 62,451 | 113,443 |
| Reclassifications | 4,602 | 4,421 | 7,663 | (17,078) | (392) |
| Disposals | (3,010) | (26,544) | (8,542) | (110) | (38,206) |
| Government grants | (336) | (828) | 0 | 0 | (1,164) |
| At 28 February 2017 | 583,766 | 1,177,328 | 206,368 | 69,388 | 2,036,850 |
| Accumulated depreciation and impairment | |||||
| At 1 March 2016 | 294,944 | 799,714 | 149,812 | 984 | 1,245,454 |
| Currency translation differences | 2,552 | 4,296 | 2,600 | 0 | 9,448 |
| Depreciation for the period | 16,568 | 50,384 | 11,705 | 0 | 78,657 |
| Impairment | 176 | 41 | 4 | 110 | 331 |
| Reclassifications | 31 | (2,912) | 2,879 | 0 | (2) |
| Disposals | (2,330) | (25,788) | (7,822) | 0 | (35,940) |
| Reversal of impairment losses | (2) | (3) | 0 | 0 | (5) |
| At 28 February 2017 | 311,939 | 825,732 | 159,178 | 1,094 | 1,297,943 |
| Carrying amount at 28 February 2017 | 271,827 | 351,596 | 47,190 | 68,294 | 738,907 |
█ Additions (i.e., purchases) of intangible assets (other than goodwill) and property, plant and equipment:
| €000 | 2017 18 | 2016 17 |
|---|---|---|
| Sugar segment | 32,084 | 23,259 |
| Starch segment | 59,427 | 57,577 |
| Fruit segment | 49,356 | 33,822 |
| Group | 140,867 | 114,658 |
█ 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 Austria (in the Sugar and Starch segments) and an EU subsidy for a research project in Austria (in the Starch segment).
█ 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. An option to purchase this third-party building can be exercised in the 2018|19 financial year. The finance leases for fixtures, furniture, and equipment 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:
| 2017 18 | 2016 17 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| €000 | Land, leasehold rights and buildings |
Plant and machinery |
Fixtures, furniture and equipment |
Land, leasehold rights and buildings |
Plant and machinery |
Fixtures, furniture and equipment |
||||
| Cost | 3,003 | 458 | 173 | 3,003 | 870 | 132 | ||||
| Less accumulated depreciation and impairment |
(747) | (283) | (30) | (491) | (438) | (21) | ||||
| Carrying amount | 2,256 | 175 | 143 | 2,512 | 432 | 111 |
| 2017 18 | 2016 17 | |||||
|---|---|---|---|---|---|---|
| €000 | Future minimum lease payments |
Interest | Present value |
Future minimum lease payments |
Interest | Present value |
| In the subsequent year | 2,464 | (31) | 2,433 | 572 | (73) | 499 |
| In years 2 to 5 | 202 | (25) | 177 | 3,022 | (156) | 2,866 |
| In more than 5 years | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 2,666 | (56) | 2,610 | 3,594 | (229) | 3,365 |
█ 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 | 2017 18 | 2016 17 |
|---|---|---|
| In the subsequent year | 4,529 | 3,678 |
| In years 2 to 5 | 11,433 | 13,836 |
| In more than 5 years | 4,744 | 5,224 |
█ The AGRANA Group does not act as a lessor.
| €000 | Equity- accounted joint ventures |
Securities (non- current) |
Investments in non consolidated subsidiaries and outside companies |
Total |
|---|---|---|---|---|
| 2017 18 | ||||
| At 1 March 2017 | 72,745 | 18,826 | 1,051 | 92,622 |
| Currency translation differences | (908) | (199) | 0 | (1,107) |
| Additions, including capital increase | ||||
| at joint ventures | 2,000 | 140 | 0 | 2,140 |
| Share of results of equity-accounted joint ventures | 29,395 | 0 | 0 | 29,395 |
| Disposals, and dividends of | ||||
| equity-accounted joint ventures | (30,000) | (5) | (157) | (30,162) |
| Other comprehensive (expense)/income | (4) | (59) | 0 | (63) |
| At 28 February 2018 | 73,228 | 18,703 | 894 | 92,825 |
| 2016 17 | ||||
| At 1 March 2016 | 60,906 | 18,622 | 1,091 | 80,619 |
| Currency translation differences | 753 | 40 | 0 | 793 |
| Additions, including capital increase | ||||
| at joint ventures | 5,000 | 91 | 0 | 5,091 |
| Share of results of equity-accounted joint ventures | 30,589 | 0 | 0 | 30,589 |
| Disposals, and dividends of | ||||
| equity-accounted joint ventures | (24,500) | (54) | (40) | (24,594) |
| Other comprehensive (expense)/income | (3) | 127 | 0 | 124 |
| At 28 February 2017 | 72,745 | 18,826 | 1,051 | 92,622 |
The securities were predominantly securities of Austrian issuers.
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Trade receivables | 308,294 | 317,397 |
| Amounts due from affiliated companies and joint ventures | 23,368 | 19,340 |
| Receivable from EU from production levy | 5,081 | 0 |
| Positive fair value of derivatives | 4,289 | 1,856 |
| Receivable under government grants | 631 | 186 |
| Amounts due from associates in the Südzucker group | 467 | 2,816 |
| Receivable for legacy soil reclamation | 0 | 208 |
| Other financial assets | 14,025 | 18,985 |
| Financial instruments | 356,155 | 360,788 |
| VAT credits and other tax credits | 60,698 | 80,427 |
| Prepaid expenses | 4,982 | 5,331 |
| Accrued income | 2,549 | 3,180 |
| Total | 424,384 | 449,726 |
| Of which due after more than 1 year | 8,816 | 7,115 |
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.
Deferred tax assets were attributable to balance sheet items as follows:
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Deferred tax assets | ||
| Intangible assets and property, plant and equipment | 2,634 | 2,099 |
| Non-current financial assets (primarily "one-seventh" write-downs | ||
| on non-consolidated subsidiaries and on outside companies) | 4,373 | 4,969 |
| Inventories | 2,897 | 4,398 |
| Receivables and other assets | 679 | 1,426 |
| Carryforwards of unused tax losses | 511 | 1,072 |
| Retirement, termination and long-service benefit obligations | 7,306 | 7,354 |
| Other provisions and liabilities | 12,186 | 12,103 |
| Total deferred tax assets | 30,586 | 33,421 |
| Deferred tax assets offset against deferred tax liabilities | ||
| relating to the same tax authority | (16,922) | (19,087) |
| Net deferred tax assets | 13,664 | 14,334 |
Deferred tax liabilities are detailed in note 27.
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Raw materials and consumables | 197,102 | 190,136 |
| Finished and unfinished goods | 444,038 | 470,918 |
| Goods purchased for resale | 13,397 | 34,978 |
| Total | 654,537 | 696,032 |
Write-downs of € 8,756 thousand (prior year: € 4,640 thousand) were recognised on inventories, with the Sugar segment accounting for € 7,726 thousand (prior year: € 3,157 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.
█ The share capital at the balance sheet date was € 113,531,275 (prior year: € 113,531,275), divided into 15,622,244 (prior year: 15,622,244) voting ordinary bearer shares without par value. All shares were fully paid.
█ The movements in the Group's equity are presented from page 66.
█ 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. A capital increase was completed in the 2016|17 financial year. The resulting share premium of € 131,699,375, less the after-tax cost of € 2,301,471 of the capital increase, was added to the equity item "share premium and other capital reserves". Taxes of € 767,157 related to the cost of the capital increase were deducted from share premium and other capital reserves. At the balance sheet date the amount of share premium and other capital reserves was € 540,759,999 (prior year: € 540,759,999).
█ 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.
█ The additional contributions by other shareholders of € 500 thousand represented the external share of a capital contribution in the AGRANA-STUDEN group.
█ Changes in ownership interests and scope of consolidation, amounting to a deduction of € 73 thousand, resulted from the purchase of shares of non-controlling shareholders of the fully consolidated S.C. AGRANA Romania S.A., Bucharest, Romania.
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:
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Total equity | 1,453,997 | 1,411,888 |
| Total assets | 2,356,421 | 2,481,436 |
| Equity ratio | 61.7% | 56.9% |
| Net debt | 232,493 | 239,878 |
| Gearing ratio | 16.0% | 17.0% |
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.
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Provisions for: | ||
| Retirement benefits | 27,400 | 31,118 |
| Termination benefits | 41,304 | 37,811 |
| Other | 50,944 | 63,352 |
| Total | 119,648 | 132,281 |
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:
| % | 28 Feb 2018 |
28 Feb 2017 |
|---|---|---|
| Expected rate of wage and salary increases | ||
| Austria and rest of Europe | 3.3 | 2.5 |
| Mexico/USA/South Korea | 6.0/3.0/5.0 | 6.0/3.0/4.0 |
| Expected rate of pension increases | ||
| Austria | 2.0 | 2.0 |
| Mexico | 6.0 | 4.0 |
| Discount rate | ||
| Austria, rest of Europe, and USA | 1.7 | 1.6 |
| Mexico/South Korea | 7.5/3.4 | 8.0/2.3 |
A discount rate of 1.7% (prior year: 1.6%) 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").
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 by 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:
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Pension plans | ||
| Present value of defined benefit obligation | 42,852 | 45,498 |
| Fair value of plan assets | (15,452) | (14,380) |
| Pension provisions (net liability) | 27,400 | 31,118 |
| Termination benefit plans | ||
| Present value of defined benefit obligation | 42,758 | 39,033 |
| Fair value of plan assets | (1,454) | (1,222) |
| Termination benefit provisions (net liability) | 41,304 | 37,811 |
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 € 21,533 thousand (prior year: € 22,126 thousand) and the plan assets amounted to € 14,659 thousand (prior year: € 13,630 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 € 17,021 thousand (prior year: € 19,061 thousand), of AGRANA Stärke GmbH in the amount of € 2,399 thousand (prior year: € 2,522 thousand) and of AUSTRIA JUICE GmbH in the amount of € 206 thousand (prior year: € 220 thousand). The present value of the obligation of AUSTRIA JUICE GmbH is offset by plan assets in the form of pension risk transfer insurance of € 155 thousand (prior year: € 158 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 € 1,009 thousand (prior year: € 991 thousand) and there were plan assets in the form of pension insurance of € 565 thousand (prior year: € 511 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 € 684 thousand (prior year: € 578 thousand), with plan assets in the form of pension insurance of € 73 thousand (prior year: € 81 thousand).
The pension provisions showed the following movement:
| Present | Fair value | ||
|---|---|---|---|
| value of | of plan | Pension | |
| €000 | obligation | assets | provisions |
| 2017 18 | |||
| At 1 March 2017 | 45,498 | (14,380) | 31,118 |
| Service cost | 595 | 0 | 595 |
| Interest expense/(income) | 740 | (234) | 506 |
| Effects of plan curtailments and settlements | 5 | 0 | 5 |
| Taxes and administration cost | 0 | 19 | 19 |
| Total recognised in the income statement | |||
| (net pension cost) | 1,340 | (215) | 1,125 |
| (Gains)/losses from: | |||
| Actual return on plan assets | 0 | (807) | (807) |
| Changes in financial assumptions | (1,373) | 0 | (1,373) |
| Experience adjustments | 342 | 0 | 342 |
| Currency translation differences | (55) | 8 | (47) |
| Total remeasurement (gain) recognised | |||
| in the statement of comprehensive income | (1,086) | (799) | (1,885) |
| Settlement payments | (5) | 0 | (5) |
| Benefits paid | (2,895) | 345 | (2,550) |
| Employer contributions to plan assets | 0 | (403) | (403) |
| Other movements | (2,900) | (58) | (2,958) |
| At 28 February 2018 | 42,852 | (15,452) | 27,400 |
| 2016 17 | |||
| At 1 March 2016 | 43,243 | (13,141) | 30,102 |
| Service cost | 547 | 0 | 547 |
| Interest expense/(income) | 785 | (243) | 542 |
| Effects of plan curtailments and settlements | (22) | 0 | (22) |
| Taxes and administration cost | 0 | 13 | 13 |
| Total recognised in the income statement | |||
| (net pension cost) | 1,310 | (230) | 1,080 |
| (Gains)/losses from: | |||
| Actual return on plan assets | 0 | (860) | (860) |
| Changes in financial assumptions | 886 | 0 | 886 |
| Experience adjustments | 2,819 | 0 | 2,819 |
| Currency translation differences | (43) | 6 | (37) |
| Total remeasurement loss/(gain) recognised | |||
| in the statement of comprehensive income | 3,662 | (854) | 2,808 |
| Settlement payments | (75) | 75 | 0 |
| Benefits paid | (2,642) | 66 | (2,576) |
| Employer contributions to plan assets | 0 | (296) | (296) |
| Other movements | (2,717) | (155) | (2,872) |
| At 28 February 2017 | 45,498 | (14,380) | 31,118 |
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 € 39,469 thousand (prior year: € 35,845 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 € 127 thousand (prior year: € 118 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: € 3 thousand) offset the present value of the obligation of € 134 thousand (prior year: € 125 thousand). In the USA, the commitments of € 1,136 thousand (prior year: € 1,274 thousand) are funded solely by provisions.
The present value of the obligation of the termination benefit plan for South Korea was € 1,892 thousand (prior year: € 1,671 thousand), while the plan assets amounted to € 1,451 thousand (prior year: € 1,219 thousand).
| Present | Fair value | Termination | |
|---|---|---|---|
| value of | of plan | benefit | |
| €000 | obligation | assets | provisions |
| 2017 18 | |||
| At 1 March 2017 | 39,033 | (1,222) | 37,811 |
| Service cost | 1,732 | 0 | 1,732 |
| Interest expense/(income) | 608 | (26) | 582 |
| Taxes and administration cost | 0 | 2 | 2 |
| Total recognised in the income statement | |||
| (net termination benefit cost) | 2,340 | (24) | 2,316 |
| Losses/(gains) from: | |||
| Actual return on plan assets | 0 | 11 | 11 |
| Changes in demographic assumptions | 328 | 0 | 328 |
| Changes in financial assumptions | 1,759 | 0 | 1,759 |
| Experience adjustments | 548 | 0 | 548 |
| Currency translation differences | (392) | 119 | (273) |
| Total remeasurement loss recognised | |||
| in the statement of comprehensive income | 2,243 | 130 | 2,373 |
| Benefits paid | (858) | 21 | (837) |
| Employer contributions to plan assets | 0 | (359) | (359) |
| Other movements | (858) | (338) | (1,196) |
| At 28 February 2018 | 42,758 | (1,454) | 41,304 |
The termination benefit provisions showed the following movement:
| Present | Fair value | Termination | |
|---|---|---|---|
| value of | of plan | benefit | |
| €000 | obligation | assets | provisions |
| 2016 17 | |||
| At 1 March 2016 | 37,874 | (830) | 37,044 |
| Service cost | 1,730 | 0 | 1,730 |
| Interest expense/(income) | 676 | (22) | 654 |
| Taxes and administration cost | 0 | 3 | 3 |
| Total recognised in the income statement | |||
| (net termination benefit cost) | 2,406 | (19) | 2,387 |
| Losses/(gains) from: | |||
| Actual return on plan assets | 0 | 8 | 8 |
| Changes in demographic assumptions | (21) | 0 | (21) |
| Changes in financial assumptions | 699 | 0 | 699 |
| Experience adjustments | (14) | 0 | (14) |
| Currency translation differences | 232 | (109) | 123 |
| Total remeasurement loss/(gain) recognised | |||
| in the statement of comprehensive income | 896 | (101) | 795 |
| Benefits paid | (2,143) | 70 | (2,073) |
| Employer contributions to plan assets | 0 | (342) | (342) |
| Other movements | (2,143) | (272) | (2,415) |
| At 28 February 2017 | 39,033 | (1,222) | 37,811 |
The year's actuarial result on pension and termination benefit provisions, which is recognised directly in equity as the item "changes in actuarial gains and losses on defined benefit pension obligations and similar liabilities", was an actuarial loss of € 493 thousand (prior year: actuarial loss of € 3,607 thousand). The movement resulted primarily from a change in the discount rate, experience adjustments, changes in growth assumptions for the pension assessment base and future salaries, changes in expected retirement age and assumed employee turnover rates. As of 28 February 2018, net cumulative actuarial losses of € 39,137 thousand (prior year: net cumulative losses of € 38,644 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.
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 owneroccupied property.
At the balance sheet date the plan assets were invested in the following asset categories:
| 28 Feb | 28 Feb | |
|---|---|---|
| % | 2018 | 2017 |
| Fixed income securities | 38.19 | 35.73 |
| Equity securities | 36.74 | 34.30 |
| Real estate | 4.24 | 4.26 |
| Other | 20.83 | 25.71 |
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.
The average weighted duration of the present value of the pension obligations at 28 February 2018 was 12.10 years (prior year: 12.46 years) and that of the termination benefit obligations was 8.54 years (prior year: 8.63 years).
€ 817 thousand of contributions are expected to be paid into the plan assets in the subsequent reporting period (prior year: € 633 thousand).
The amounts of pension and termination benefit payments in the next ten years are expected to be as follows:
| €000 | Pension benefits |
Termination benefits |
|---|---|---|
| Financial year | ||
| 2018 19 | 3,112 | 4,510 |
| 2019 20 | 3,072 | 3,254 |
| 2020 21 | 2,901 | 2,573 |
| 2021 22 | 2,870 | 4,345 |
| 2022 23 | 2,578 | 3,960 |
| 2023 24 to 2027 28 | 11,668 | 11,960 |
| Total | 26,201 | 30,602 |
| b) Other provisions | ||||
|---|---|---|---|---|
| €000 | Reculti- vation |
including long-service awards |
Uncertain liabilities |
Total |
| 2017 18 | ||||
| At 1 March 2017 | 7,833 | 17,411 | 38,108 | 63,352 |
| Currency translation differences | 214 | (152) | (6) | 56 |
| Used | (829) | (7,105) | (19,287) | (27,221) |
| Released | (581) | (2,916) | (2,403) | (5,900) |
| Added | 606 | 10,137 | 9,914 | 20,657 |
| At 28 February 2018 | 7,243 | 17,375 | 26,326 | 50,944 |
| Of which due within 1 year | 0 | 3,109 | 26,228 | 29,337 |
The provisions for uncertain liabilities included, among other items, provisions for litigation risks of € 8,843 thousand (prior year: € 7,807 thousand), for costs of beet receiving, loading and storage of € 1,700 thousand (prior year: € 2,444 thousand), for onerous contracts of € 7,284 thousand (prior year: € 9,803 thousand) and a provision of € 0 thousand for tax liabilities in connection with a tax audit in Romania (prior year: € 11,701 thousand).
Of the non-current other provisions of € 21,607 thousand (prior year: € 19,898 thousand), an amount of € 11,358 thousand (prior year: € 10,000 thousand) represented provisions for long-service awards. These are payable under local company agreements or collective agreements and are based on length of service. Phased-retirement provisions of € 813 thousand (prior year: € 556 thousand) are expected to be used in outflows of funds in the next one to two years. For the majority of the non-current provisions of € 7,243 thousand (prior year: € 7,102 thousand) for recultivation, an outflow of funds is likely to occur in more than five years.
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Bank loans and overdrafts, and other loans from non-Group entities | 219,591 | 203,814 |
| Borrowings from affiliated companies in the Südzucker group | 150,000 | 250,000 |
| Finance lease liabilities | 2,610 | 3,362 |
| Borrowings | 372,201 | 457,176 |
| Of which due after more than 1 year | 310,572 | 180,495 |
Details of bank loans and overdrafts are presented in sections 10.1. to 10.4.
At the balance sheet date, the bank loans and overdrafts were secured by liens. The liens related solely to collateral for export credits with underlying carrying amounts of € 7,800 thousand (prior year: € 7,800 thousand).
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Trade payables | 256,380 | 312,637 |
| Amounts due to affiliated companies in the Südzucker group | ||
| and joint ventures | 28,573 | 13,399 |
| Payables from the acquisition of subsidiaries | 10,021 | 13,329 |
| Derivative liabilities | 6,399 | 10,612 |
| Liabilities to beet growers from production levy | 3,196 | 0 |
| Financial other payables | 64,306 | 68,926 |
| Financial instruments | 368,875 | 418,903 |
| Payables: deferred income | 2,386 | 3,323 |
| Payables: prepayments | 284 | 410 |
| Payables: other tax | 10,581 | 14,729 |
| Payables: social security | 6,926 | 6,855 |
| Total | 389,052 | 444,220 |
| Of which due after more than 1 year | 10,832 | 14,211 |
Trade payables included obligations to beet growers of € 60,388 thousand (prior year: € 109,115 thousand).
Financial other payables included, among other items, liabilities to employees and payroll liabilities.
Deferred tax liabilities were attributable to balance sheet items as follows:
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Deferred tax liabilities | ||
| Non-current assets | 16,881 | 23,009 |
| Inventories | 4 | 38 |
| Receivables and other assets | 3,220 | 4,771 |
| Untaxed reserves in separate financial statements | 2,145 | 2,214 |
| Provisions and other liabilities | 2,384 | 2,157 |
| Total deferred tax liabilities | 24,634 | 32,189 |
| Deferred tax assets offset against deferred tax liabilities | ||
| relating to the same tax authority | (16,922) | (19,087) |
| Net deferred tax liabilities | 7,712 | 13,102 |
Deferred tax assets are detailed in note 21.
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 sustained growth 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 | ||
| rate | sheet date | 1 year | 5 years | 5 years | ||
| % | €000 | €000 | €000 | €000 | ||
| 28 February 2018 | ||||||
| Fixed rate | ||||||
| EUR | 1.69 | 262,268 | 7,438 | 145,360 | 109,470 | |
| 1.69 | 262,268 | 7,438 | 145,360 | 109,470 | ||
| Variable rate | ||||||
| ARS | 30.03 | 256 | 205 | 51 | 0 | |
| EGP | 8.50 | 233 | 233 | 0 | 0 | |
| EUR | 0.54 | 99,903 | 44,383 | 55,520 | 0 | |
| HUF | 2.00 | 2,442 | 2,442 | 0 | 0 | |
| INR | 9.75 | 252 | 252 | 0 | 0 | |
| KRW | 3.17 | 2,257 | 2,257 | 0 | 0 | |
| USD | 2.25 | 1,980 | 1,980 | 0 | 0 | |
| 0.77 | 107,323 | 51,752 | 55,571 | 0 | ||
| Total | 1.42 | 369,591 | 59,190 | 200,931 | 109,470 |
| Average | Of which due in | |||||
|---|---|---|---|---|---|---|
| effective | At | More than |
||||
| interest | balance | Up to | 1 to | |||
| rate | sheet date | 1 year | 5 years | 5 years | ||
| % | €000 | €000 | €000 | €000 | ||
| 28 February 2017 | ||||||
| Fixed rate | ||||||
| EUR | 2.63 | 284,086 | 113,650 | 78,436 | 92,000 | |
| 2.63 | 284,086 | 113,650 | 78,436 | 92,000 | ||
| Variable rate | ||||||
| ARS | 20.13 | 1,319 | 1,181 | 138 | 0 | |
| EGP | 8.50 | 87 | 87 | 0 | 0 | |
| EUR | 1.05 | 157,670 | 150,590 | 7,080 | 0 | |
| HUF | 1.70 | 6,196 | 6,196 | 0 | 0 | |
| KRW | 2.87 | 3,014 | 3,014 | 0 | 0 | |
| USD | 2.25 | 1,442 | 1,442 | 0 | 0 | |
| 1.26 | 169,728 | 162,510 | 7,218 | 0 | ||
| Total | 2.12 | 453,814 | 276,160 | 85,654 | 92,000 |
Borrowings (excluding finance leases) consisted of bank loans and overdrafts, and borrowings from affiliated companies in the Südzucker group, in a total amount of € 369,591 thousand (prior year: € 453,814 thousand).
The weighted average interest rate paid on these credits was 1.42% (prior year: 2.12%), with a remaining maturity of 4.0 years (prior year: 2.0 years).
The credit funding of the AGRANA Group consisted 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 € 42,500 thousand (prior year: € 126,000 thousand) and a financing from Südzucker AG, Mannheim, Germany, in the amount of € 150,000 thousand (prior year: € 250,000 thousand). The rest of the credit funding consisted of bilateral credit lines.
The fixed interest portion of bank loans and overdrafts and amounts due to affiliated companies was € 262,268 thousand (prior year: € 284,086 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, bank loans and overdrafts in the amount of € 7,800 thousand (prior year: € 7,800 thousand) were secured by other liens.
Cash and cash equivalents decreased by € 77,468 thousand from the prior year to a new total of € 120,961 thousand. In addition, securities in the amount of € 44 thousand (prior year: € 43 thousand) were held as current assets; these were categorised as held-for-trading.
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:
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 | ||
| 28 February 2018 | |||||
| AUD | EUR | 3,403 | 20 | (5) | 15 |
| CAD | EUR | 149 | 0 | (7) | (7) |
| CZK | EUR | 46,102 | 210 | (17) | 193 |
| EUR | AUD | 6,273 | 92 | (22) | 70 |
| EUR | CZK | 24,219 | 0 | (88) | (88) |
| EUR | GBP | 183 | 0 | (3) | (3) |
| EUR | HUF | 8,873 | 62 | (3) | 59 |
| EUR | MXN | 12,985 | 151 | (7) | 144 |
| EUR | PLN | 2,139 | 2 | (5) | (3) |
| EUR | RON | 71,421 | 27 | (400) | (373) |
| EUR | RUB | 1,600 | 7 | (17) | (10) |
| EUR | USD | 89,726 | 2,652 | (113) | 2,539 |
| EUR | ZAR | 4,110 | 0 | (656) | (656) |
| HUF | EUR | 479 | 0 | (2) | (2) |
| MXN | EUR | 5,673 | 2 | 0 | 2 |
| PLN | EUR | 23,852 | 218 | (18) | 200 |
| RON | EUR | 17,316 | 96 | 0 | 96 |
| USD | AUD | 1,971 | 9 | (44) | (35) |
| USD | EUR | 19,336 | 64 | (1,095) | (1,031) |
| Currency derivatives | 339,810 | 3,612 | (2,502) | 1,110 | |
| Interest swap | 118,000 | 185 | (2,491) | (2,306) | |
| Interest cap | 50,000 | 8 | 0 | 8 | |
| Sugar futures | 2,177 | 399 | 0 | 399 | |
| Wheat and corn futures | 23,564 | 85 | (1,406) | (1,321) | |
| Total | 533,551 | 4,289 | (6,399) | (2,110) |
| Notional | Positive | Negative | Net | ||
|---|---|---|---|---|---|
| Purchase | Sale | amount | fair values | fair values | fair value |
| €000 | €000 | €000 | €000 | ||
| 28 February 2017 | |||||
| AUD | EUR | 1,370 | 25 | (1) | 24 |
| CZK | EUR | 41,747 | 0 | (329) | (329) |
| EUR | AUD | 6,818 | 1 | (282) | (281) |
| EUR | CZK | 13,455 | 116 | 0 | 116 |
| EUR | GBP | 215 | 0 | (1) | (1) |
| EUR | HUF | 18,561 | 0 | (212) | (212) |
| EUR | MXN | 6,367 | 0 | (413) | (413) |
| EUR | PLN | 962 | 0 | (8) | (8) |
| EUR | RON | 107,598 | 0 | (203) | (203) |
| EUR | RUB | 2,900 | 0 | (417) | (417) |
| EUR | USD | 163,018 | 108 | (3,310) | (3,202) |
| EUR | ZAR | 2,992 | 0 | (352) | (352) |
| HUF | EUR | 7,353 | 71 | 0 | 71 |
| MXN | EUR | 1,719 | 100 | 0 | 100 |
| PLN | EUR | 28,703 | 94 | (154) | (60) |
| RON | EUR | 43,639 | 87 | 0 | 87 |
| USD | AUD | 699 | 0 | (19) | (19) |
| USD | EUR | 67,655 | 719 | (196) | 523 |
| Currency derivatives | 515,771 | 1,321 | (5,897) | (4,576) | |
| Interest swap | 68,000 | 0 | (4,052) | (4,052) | |
| Interest cap | 50,000 | 22 | 0 | 22 | |
| Sugar futures | 21,779 | 513 | (260) | 253 | |
| Wheat and corn futures | 15,116 | 0 | (403) | (403) | |
| Total | 670,666 | 1,856 | (10,612) | (8,756) |
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 five 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 28 February 2018 there were cash flow hedges with positive fair values of € 803 thousand (prior year: € 314 thousand) and cash flow hedges with negative fair values of € 1,417 thousand (prior year: € 1,480 thousand).
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 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 2018 | |||||||||||||||
| Currency derivatives | |||||||||||||||
| Positive fair values | 3,612 | 3,612 | 3,269 | 205 | 138 | 0 | 0 | 0 | 0 | 0 | |||||
| Negative fair values | (2,502) | (2,502) | (1,474) | (74) | (954) | 0 | 0 | 0 | 0 | 0 | |||||
| Interest rate derivatives | |||||||||||||||
| Positive fair values | 193 | 201 | 42 | 0 | 0 | 42 | 42 | 42 | 33 | 0 | |||||
| Negative fair values | (2,491) | (2,580) | (676) | 0 | (1,035) | (869) | 0 | 0 | 0 | 0 | |||||
| Commodity derivatives | |||||||||||||||
| Positive fair values | 484 | 484 | 292 | 124 | 68 | 0 | 0 | 0 | 0 | 0 | |||||
| Negative fair values | (1,406) | (1,406) | (1,406) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
| Total | (2,110) | (2,191) | 47 | 255 | (1,783) | (827) | 42 | 42 | 33 | 0 | |||||
| 28 February 2017 | |||||||||||||||
| Currency derivatives | |||||||||||||||
| Positive fair values | 1,321 | 1,321 | 973 | 146 | 202 | 0 | 0 | 0 | 0 | 0 | |||||
| Negative fair values | (5,897) | (5,897) | (3,938) | (1,168) | (791) | 0 | 0 | 0 | 0 | 0 | |||||
| Interest rate derivatives | |||||||||||||||
| Positive fair values | 22 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
| Negative fair values | (4,052) | (3,855) | (384) | (384) | (768) | (1,536) | (783) | 0 | 0 | 0 | |||||
| Commodity derivatives | |||||||||||||||
| Positive fair values | 513 | 513 | 37 | 245 | 231 | 0 | 0 | 0 | 0 | 0 | |||||
| Negative fair values | (663) | (663) | (373) | (30) | (260) | 0 | 0 | 0 | 0 | 0 | |||||
| Total | (8,756) | (8,581) | (3,685) | (1,191) | (1,386) | (1,536) | (783) | 0 | 0 | 0 |
In terms of sensitivities, the net combined fair value of the derivative positions held at 28 February 2018 would have changed as follows given a reduction or increase of a half 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 (–) | |||||
|---|---|---|---|---|---|---|---|
| 28 Feb | 28 Feb | 28 Feb | 28 Feb | 28 Feb | 28 Feb | ||
| €000 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |
| Currency derivatives | 339,810 | 515,771 | 8,890 | 11,610 | (10,866) | (14,189) | |
| Interest rate derivatives | 168,000 | 118,000 | 1,496 | 1,756 | (4,333) | (1,560) | |
| Commodity derivatives | 25,741 | 36,895 | 1,609 | 2,172 | (2,913) | (1,716) |
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 € 1,437 thousand (prior year: increase of € 2,857 thousand) and for the decrease in rates and prices, an equity decrease of € 2,457 thousand (prior year: decrease of € 2,716 thousand). The effect of the fair value changes on profit before tax would have been, for the increase in rates and prices, a profit increase of € 10,079 thousand (prior year: increase of € 11,728 thousand) and for the decrease in rates and prices, a profit decrease of € 14,836 thousand (prior year: decrease of € 13,843 thousand).
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:
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.
In measuring the fair values of bank loans and overdrafts, other loans from non-Group entities, and borrowings from affiliated companies in the Südzucker group in Level 2, the terms agreed in the existing financing contracts, such as the remaining maturity and interest rate, are compared with the current market terms available at the balance sheet date for new financings with the same remaining maturity. The interest rate differential identified in this comparison determines the difference between the carrying amount and fair value.
| 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 | Level 3 | Total |
| 28 February 2018 | |||||||||||
| Financial assets | |||||||||||
| at fair value | |||||||||||
| Securities (non-current) | 17,812 | 0 | 0 | 0 | 0 | 0 | 17,812 | 13,361 | – | 4,451 | 17,812 |
| Derivative | |||||||||||
| financial assets | 0 | 0 | 3,486 | 803 | 0 | 0 | 4,289 | 484 | 3,805 | – | 4,289 |
| Securities (current) | 44 17,856 |
0 0 |
0 3,486 |
0 803 |
0 0 |
0 0 |
44 22,145 |
44 | – | – | 44 |
| Financial assets not at fair value |
|||||||||||
| Securities (non-current) | 0 | 891 | 0 | 0 | 0 | 0 | 891 | – | – | – | – |
| Investments in non-consolidated subsidiaries and outside companies |
0 | 894 | 0 | 0 | 0 | 0 | 894 | – | – | – | – |
| Trade receivables | 0 | 0 | 0 | 0 | 308,294 | 0 | 308,294 | – | 308,294 | – | 308,294 |
| Financial other receivables1 | 0 | 0 | 0 | 0 | 43,572 | 0 | 43,572 | – | 43,572 | – | 43,572 |
| Cash and cash equivalents | 0 | 0 | 0 | 0 | 120,961 | 0 | 120,961 | – | 120,961 | – | 120,961 |
| 0 | 1,785 | 0 | 0 | 472,827 | 0 | 474,612 | |||||
| Financial liabilities at fair value |
|||||||||||
| Derivative liabilities | 0 | 0 | 4,982 | 1,417 | 0 | 0 | 6,399 | 1,406 | 4,993 | – | 6,399 |
| 0 | 0 | 4,982 | 1,417 | 0 | 0 | 6,399 | |||||
| Financial liabilities | |||||||||||
| not at fair value | |||||||||||
| Bank loans and overdrafts, | |||||||||||
| and other loans | |||||||||||
| from non-Group entities | 0 | 0 | 0 | 0 | 0 | 219,591 | 219,591 | – | 219,008 | – 219,008 | |
| Borrowings from | |||||||||||
| affiliated companies | |||||||||||
| in the Südzucker group | 0 | 0 | 0 | 0 | 0 | 150,000 | 150,000 | – | 150,425 | – | 150,425 |
| Lease liabilities | 0 | 0 | 0 | 0 | 0 | 2,610 | 2,610 | – | 2,654 | – | 2,654 |
| Trade payables | 0 | 0 | 0 | 0 | 0 | 256,380 | 256,380 | – | 256,380 | – | 256,380 |
| Financial other payables2 | 0 | 0 | 0 | 0 | 0 | 106,096 | 106,096 | – | 106,096 | – | 106,096 |
| 0 | 0 | 0 | 0 | 0 | 734,677 | 734,677 |
1 Excluding other tax receivables and positive fair values of derivatives, and excluding those prepaid expenses and accrued income not resulting in a cash inflow.
2 Excluding payables from other tax, social security, negative fair values of derivatives, 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 | Level 3 | Total |
| 28 February 2017 | |||||||||||
| Financial assets | |||||||||||
| at fair value | |||||||||||
| Securities (non-current) | 17,936 | 0 | 0 | 0 | 0 | 0 | 17,936 | 13,538 | – | 4,398 | 17,936 |
| Derivative | |||||||||||
| financial assets | 0 | 0 | 1,542 | 314 | 0 | 0 | 1,856 | 513 | 1,343 | – | 1,856 |
| Securities (current) | 43 17,979 |
0 0 |
0 1,542 |
0 314 |
0 0 |
0 0 |
43 19,835 |
43 | – | – | 43 |
| Financial assets not at fair value |
|||||||||||
| Securities (non-current) | 0 | 890 | 0 | 0 | 0 | 0 | 890 | – | – | – | – |
| Investments in non-consolidated subsidiaries and outside companies |
0 | 1,051 | 0 | 0 | 0 | 0 | 1,051 | – | – | – | – |
| Trade receivables | 0 | 0 | 0 | 0 | 317,397 | 0 | 317,397 | – | 317,397 | – | 317,397 |
| Financial other receivables1 | 0 | 0 | 0 | 0 | 41,535 | 0 | 41,535 | – | 41,535 | – | 41,535 |
| Cash and cash equivalents | 0 | 0 | 0 | 0 | 198,429 | 0 | 198,429 | – | 198,429 | – | 198,429 |
| 0 | 1,941 | 0 | 0 | 557,361 | 0 | 559,302 | |||||
| Financial liabilities at fair value |
|||||||||||
| Derivative liabilities | 0 | 0 | 9,132 | 1,480 | 0 | 0 | 10,612 | 663 | 9,949 | – | 10,612 |
| 0 | 0 | 9,132 | 1,480 | 0 | 0 | 10,612 | |||||
| Financial liabilities | |||||||||||
| not at fair value | |||||||||||
| Bank loans and overdrafts, | |||||||||||
| and other loans | |||||||||||
| from non-Group entities | 0 | 0 | 0 | 0 | 0 | 203,814 | 203,814 | – | 206,046 | – | 206,046 |
| Borrowings from | |||||||||||
| affiliated companies | |||||||||||
| in the Südzucker group | 0 | 0 | 0 | 0 | 0 | 250,000 | 250,000 | – | 258,546 | – | 258,546 |
| Lease liabilities | 0 | 0 | 0 | 0 | 0 | 3,362 | 3,362 | – | 3,529 | – | 3,529 |
| Trade payables | 0 | 0 | 0 | 0 | 0 | 312,637 | 312,637 | – | 312,637 | – | 312,637 |
| Financial other payables2 | 0 | 0 | 0 | 0 | 0 | 95,654 | 95,654 | – | 95,654 | – | 95,654 |
| 0 | 0 | 0 | 0 | 0 | 865,467 | 865,467 |
1 Excluding other tax receivables and positive fair values of derivatives, and excluding those prepaid expenses
and accrued income not resulting in a cash inflow.
2 Excluding payables from other tax, social security, negative fair values of derivatives, customer prepayments, and deferred income.
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. Non-current securities (equity instruments) classified as available-for-sale for which no reliable market data are available and for which the fair value could therefore not be reliably determined are measured at cost. The total amount of non-current securities valued at cost is non-material for the Group.
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. These fair values represent the present values of the future interest payments based on the yield curves used. 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 | 2017 18 | 2016 17 |
|---|---|---|
| Available-for-sale (at cost) | 0 | 0 |
| Held for trading | 5,599 | (1,100) |
| Loans and receivables | 44 | 1,596 |
| At amortised cost | (12,079) | 3,962 |
| Net (loss)/gain on financial instruments | (6,436) | 4,458 |
The change in fair values of available-for-sale securities was recognised in other comprehensive income at an increase of € 63 thousand before tax (prior year: increase of € 131 thousand) and at a tax expense of € 5 thousand (prior year: tax expense of € 25 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 | 2017 18 | 2016 17 |
|---|---|---|
| Total interest income | 2,613 | 2,861 |
| Total interest expense | (7,723) | (10,583) |
| Net interest expense | (5,110) | (7,722) |
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 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:
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Carrying amount of trade receivables, gross | 315,537 | 325,182 |
| Provisions for impairment of trade receivables | (7,243) | (7,785) |
| Carrying amount, net | 308,294 | 317,397 |
The provision for impairment of trade receivables showed the following movements:
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Provision at 1 March | 7,785 | 8,080 |
| Currency translation adjustments/other change | (186) | 33 |
| Added | 1,628 | 1,315 |
| Used | (945) | (611) |
| Released | (1,039) | (1,032) |
| Provision at 28 February | 7,243 | 7,785 |
The released amount of the provision included interest income of € 16 thousand (prior year: € 15 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:
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Trade receivables past due and with no impairment provided: | ||
| Up to 30 days | 26,609 | 24,479 |
| 31 to 90 days | 7,662 | 4,040 |
| More than 90 days | 2,758 | 2,362 |
| Total | 37,029 | 30,881 |
The assets which are neither past due nor impaired relate to customers with excellent credit ratings.
The maximum exposure of € 458,566 thousand (prior year: € 483,098 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.
The credit risk on trade receivables, net of credit insurance, bank guarantees and other security (net credit risk), was as follows:
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Trade receivables | 308,294 | 317,397 |
| Less credit insurance and other security | (251,468) | (240,251) |
| Net credit risk | 56,826 | 77,146 |
AGRANA maintains business relationships with many large international industrial customers having excellent credit ratings.
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.
At the balance sheet date the Group had credit lines with a total limit of € 916,228 thousand (prior year: € 1,011,373 thousand). The weighted average remaining maturity of the credit lines at the balance sheet date was 2.9 years (prior year: 2.8 years).
The following maturity profile shows the effects of the cash outflows from liabilities as at 28 February 2018 on the Group's liquidity situation. All cash outflows are undiscounted.
| Contractual cash outflows | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 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 2018 | ||||||||||
| Non-derivative | ||||||||||
| financial payables | ||||||||||
| Bank loans and overdrafts, | ||||||||||
| and other loans | ||||||||||
| from non-Group entities | 219,591 | 227,569 | 9,286 | 16,083 | 1,461 | 50,425 | 6,150 | 6,267 | 112,764 | 25,133 |
| Borrowings from | ||||||||||
| affiliated companies | ||||||||||
| in the Südzucker group | 150,000 | 158,973 | 36,107 | 326 | 641 | 32,053 | 1,293 | 1,293 | 1,293 | 85,967 |
| Trade payables | 256,380 | 256,380 | 223,500 | 10,568 | 22,312 | 0 | 0 | 0 | 0 | 0 |
| Trade payables and | ||||||||||
| amounts due to | ||||||||||
| affiliated companies | ||||||||||
| in the Südzucker group | ||||||||||
| and joint ventures | 28,573 | 28,573 | 27,896 | 0 | 677 | 0 | 0 | 0 | 0 | 0 |
| Finance lease liabilities | 2,610 | 2,666 | 104 | 2,278 | 82 | 164 | 38 | 0 | 0 | 0 |
| Financial other payables | 77,523 | 77,523 | 49,348 | 3,936 | 13,407 | 4,857 | 5,370 | 69 | 69 | 467 |
| 734,677 | 751,684 | 346,241 | 33,191 | 38,580 | 87,499 | 12,851 | 7,629 | 114,126 | 111,567 | |
| Derivative financial | ||||||||||
| payables | ||||||||||
| Interest rate derivatives | 2,491 | 2,580 | 676 | 0 | 1,035 | 869 | 0 | 0 | 0 | 0 |
| Currency derivatives | 2,502 | 2,502 | 1,474 | 74 | 954 | 0 | 0 | 0 | 0 | 0 |
| Commodity derivatives | 1,406 | 1,406 | 1,406 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6,399 | 6,488 | 3,556 | 74 | 1,989 | 869 | 0 | 0 | 0 | 0 | |
| Contractual cash outflows | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 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 2017 | ||||||||||
| Non-derivative | ||||||||||
| financial payables | ||||||||||
| Bank loans and overdrafts, | ||||||||||
| and other loans | ||||||||||
| from non-Group entities | 203,814 | 209,072 | 129,873 | 8,422 | 4,943 | 10,734 | 47,169 | 423 | 440 | 7,068 |
| Borrowings from | ||||||||||
| affiliated companies | ||||||||||
| in the Südzucker group | 250,000 | 261,780 | 35,002 | 0 | 103,469 | 2,053 | 31,407 | 1,293 | 1,293 | 87,263 |
| Trade payables | 312,637 | 312,637 | 288,502 | 22,238 | 1,897 | 0 | 0 | 0 | 0 | 0 |
| Trade payables and | ||||||||||
| amounts due to | ||||||||||
| affiliated companies | ||||||||||
| in the Südzucker group | ||||||||||
| and joint ventures | 13,399 | 13,399 | 12,657 | 1 | 741 | 0 | 0 | 0 | 0 | 0 |
| Finance lease liabilities | 3,362 | 3,594 | 143 | 143 | 286 | 2,649 | 373 | 0 | 0 | 0 |
| Financial other payables | 82,255 | 82,255 | 54,288 | 3,624 | 10,132 | 424 | 5,812 | 7,552 | 18 | 405 |
| 865,467 | 882,737 | 520,465 | 34,428 | 121,468 | 15,860 | 84,761 | 9,268 | 1,751 | 94,736 | |
| Derivative financial | ||||||||||
| payables | ||||||||||
| Interest rate derivatives | 4,052 | 3,855 | 384 | 384 | 768 | 1,536 | 783 | 0 | 0 | 0 |
| Currency derivatives | 5,897 | 5,897 | 3,938 | 1,168 | 791 | 0 | 0 | 0 | 0 | 0 |
| Commodity derivatives | 663 | 662 | 372 | 30 | 260 | 0 | 0 | 0 | 0 | 0 |
| 10,612 | 10,414 | 4,694 | 1,582 | 1,819 | 1,536 | 783 | 0 | 0 | 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.
The Group's international business operations expose AGRANA to foreign exchange risks from financing and financial investment, from trade receivables and trade payables and from future foreign currency cash flows under purchasing and sales contracts. To measure and control these risks, the AGRANA Group uses Value-at-Risk based on the variancecovariance 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 diversified Value-at-Risk:
| Value-at-Risk | ||
|---|---|---|
| 28 Feb | 28 Feb | |
| €000 | 2018 | 2017 |
| Sum of absolute net positions of the currency pairs | 107,863 | 125,566 |
| Value-at-Risk diversified | 7,342 | 8,373 |
The following table gives the foreign currency position by currency pair of the Value-at-Risk calculation. The individual values include both the financing activities and the operating business. This combined presentation allows the quantification of the interactions between these two spheres for each currency pair (natural hedging).
| Foreign-currency | ||||
|---|---|---|---|---|
| position | ||||
| 28 Feb | 28 Feb | |||
| €000 | 2018 | 2017 | ||
| Currency pair | ||||
| EUR/ARS | 7,223 | 4,611 | ||
| EUR/CZK | 1,045 | 18,147 | ||
| EUR/HUF | 3,411 | 19,186 | ||
| EUR/PLN | 6,169 | 2,092 | ||
| EUR/RON | 23,483 | 22,135 | ||
| EUR/RUB | 23,120 | 18,486 | ||
| EUR/USD | 9,432 | 7,234 | ||
| USD/BRL | 3,075 | 7,664 | ||
| USD/CNY | 4,443 | 5,156 | ||
| USD/MXN | 7,498 | 2,426 | ||
| Other | 18,964 | 18,429 | ||
| Total | 107,863 | 125,566 |
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 AGRANA Group's currency risk from financing arises from borrowings and financial investments not denominated in the local currency of the respective company.
The total foreign currency positions of € 107,863 thousand (prior year: € 125,566 thousand) related primarily to Romania, Russia, Argentina and Mexico as well as a US dollar position in the euro area, and represented a Value-at-Risk of € 7,342 thousand (prior year: € 8,373 thousand).
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.
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.
The AGRANA Group is exposed to interest rate risks primarily in the euro zone.
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:
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Net floating rate borrowings | 109,931 | 173,090 |
| Cash-Flow-at-Risk diversified | 180 | 429 |
| Net fixed rate borrowings | 254,830 | 181,936 |
| Value-at-Risk upon change in interest rates | 11,436 | 8,113 |
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.
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 2,845 tonnes of raw sugar (prior year: 32,514 tonnes), the purchase of 112,900 tonnes of wheat for the Austrian bioethanol production operations (prior year: 82,750 tonnes), and the purchase of 20,650 tonnes of corn (prior year: 0 tonnes), and for the sale of 3,250 tonnes of corn (prior year: 3,800 tonnes) and the sale of 500 tonnes of white sugar (prior year: 17,850 tonnes). These positions represented an aggregate contract amount of € 24,494 thousand (prior year: € 36,895 thousand) and, based on the underlying closing prices, had a combined net negative fair value of € 922 thousand (prior year: negative fair value of € 150 thousand).
AGRANA continually monitors changes in the legal setting relevant to its businesses or to their employees that could lead to a risk situation, and takes risk management actions as necessary. Areas of law to which particular attention is devoted are anti-trust, food and environmental legislation, as well as data protection, anti-money laundering and anti-terrorism finance provisions. AGRANA maintains dedicated staff positions for matters of compliance, employment law and general areas of law.
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.
The guarantees primarily related to bank loans of the joint ventures in the Sugar segment.
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Guarantees | 41,633 | 39,123 |
| Warranties, cooperative liabilities | 1,365 | 1,365 |
The guarantees are not expected to be utilised.
A further contingent liability of € 6,371 thousand (prior year: € 6,488 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:
| 28 Feb | 28 Feb | |
|---|---|---|
| €000 | 2018 | 2017 |
| Present value of lease payments due within 5 years | 15,962 | 17,514 |
| Commitments for the purchase of property, plant and equipment | 93,111 | 32,484 |
| Commitments | 109,073 | 49,998 |
No other significant events occurred after the balance sheet date of 28 February 2018 that had a material effect on AGRANA's financial position, results of operations or cash flows.
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 78.34% 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 |
| 2017 18 | |||||
| Revenue | 110,058 | 21,628 | 46,275 | 1 | 177,962 |
| Operating expenses | (48,772) | (2,107) | (77,248) | (714) | (128,841) |
| Credit relationships | (151,325) | (18) | 0 | 0 | (151,343) |
| Participation capital | 0 | 5,342 | 0 | 0 | 5,342 |
| Bank balances | |||||
| and current receivables | 0 | 14,587 | 1,512 | 5,602 | 21,701 |
| Non-current financial receivables | 0 | 0 | 4,500 | 0 | 4,500 |
| Net trade (payables)/receivables | |||||
| for goods | (8,875) | 1,130 | (3,753) | (47) | (11,545) |
| Net interest (expense)/income | (4,383) | (209) | 1,179 | 37 | (3,376) |
| Guarantees issued | 0 | 0 | 42,000 | 6,000 | 48,000 |
| Guarantees utilised | 0 | 0 | 35,687 | 0 | 35,687 |
| 2016 17 | |||||
| Revenue | 114,933 | 22,144 | 39,960 | 5 | 177,042 |
| Operating expenses | (28,611) | (627) | (77,973) | (794) | (108,005) |
| Credit relationships | (250,741) | (7,430) | 0 | 0 | (258,171) |
| Participation capital | 0 | 5,193 | 0 | 0 | 5,193 |
| Bank balances | |||||
| and current receivables | 0 | 71,133 | 2,504 | 50 | 73,687 |
| Net trade receivables/(payables) | |||||
| for goods | 6,442 | 1,285 | 522 | (20) | 8,229 |
| Net interest (expense)/income | (4,779) | (962) | 1,195 | 20 | (4,526) |
| Guarantees issued | 0 | 0 | 42,000 | 8,200 | 50,200 |
| Guarantees utilised | 0 | 0 | 28,568 | 5,372 | 33,940 |
At the balance sheet date, borrowings from related parties amounted to € 151,343 thousand (prior year: € 258,171 thousand); these borrowings were on normal commercial terms. Of this total, € 115,000 thousand represented non-current borrowings (prior year: € 115,000 thousand).
For fully consolidated subsidiaries, the Group issued guarantees in favour of companies with significant influence of € 5,000 thousand (prior year: € 5,000 thousand), of which an amount of € 209 thousand (prior year: € 634 thousand) was utilised.
The remuneration of the members of the Management Board of AGRANA Beteiligungs-AG totalled € 3,488 thousand (prior year: € 3,234 thousand), consisting of total fixed base salaries of € 1,674 thousand (prior year: € 1,614 thousand), a total performance-based, variable component of € 1,778 thousand (prior year: € 1,495 thousand) and a long-service award to Fritz Gattermayer of € 36 thousand (prior year: Johann Marihart, € 125 thousand). The performance-based elements of the compensation are linked to the amount of the dividend paid 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 7 July 2017 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 has been terminated by the employer. For the 2017|18 financial year, pension fund contributions of € 352 thousand were paid (prior year: € 354 thousand). A follow-up payment of € 109 thousand was made to former Chief Financial Officer Walter Grausam, who retired on 31 December 2014.
The retirement benefit obligations in respect of the Management Board are administered by an external pension fund. In the balance sheet at 28 February 2018, within the item "retirement and termination benefit obligations", an amount of € 6,874 thousand was recognised for pension obligations (prior year: € 8,496 thousand) and an amount of € 2,283 thousand was recognised for termination benefit obligations (prior year: € 2,151 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 127.
On 23 April 2018 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, 23 April 2018
The Management Board of AGRANA Beteiligungs-AG
Johann Marihart Stephan Büttner
Fritz Gattermayer Thomas Kölbl Member of the Management Board Member of the Management Board
Chief Executive Officer Member of the Management Board
Johann Marihart Chief Executive Officer
Stephan Büttner Member
Fritz Gattermayer Member
Thomas Kölbl Member
Erwin Hameseder Chairman
Wolfgang Heer First Vice-Chairman
Klaus Buchleitner Second Vice-Chairman
Helmut Friedl Member
Hans-Jörg Gebhard Member
Ernst Karpfinger Member
Thomas Kirchberg Member
Josef Pröll Member
Thomas Buder Chairman of the Group Staff Council and the Central Staff Council
Gerhard Glatz
Andreas Klamler
Stephan Savic
In accordance with section 124 (1) 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 28 February 2018, 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 2017|18 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, 23 April 2018
Johann Marihart Stephan Büttner
Fritz Gattermayer Thomas Kölbl
Chief Executive Officer Member of the Management Board
Member of the Management Board Member of the Management Board
[Translation]
We have audited the consolidated financial statements of AGRANA Beteiligungs-Aktiengesellschaft, Vienna, Austria and its subsidiaries (the Group), which comprise the Consolidated balance sheet as at 28 February 2018, and the Consolidated income statement, the Consolidated statement of comprehensive income, the Consolidated cash flow statement and the consolidated statement of changes in equity for the year then ended, and the notes to the consolidated financial statements.
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of 28 February 2018, and its consolidated financial performance and consolidated cash flows for the year then ended 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).
We conducted our audit in accordance with the EU Regulation 537/2014 ("EU Regulation") and Austrian Standards on Auditing. These standards require the audit to be conducted in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the "Auditor's Responsibilities" section of our report. We are independent of the audited Group in accordance with Austrian Generally Accepted Accounting Principles and professional regulations, and we have fulfilled our other responsibilities under those relevant ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, however, we do not provide a separate opinion thereon.
The Management Board provides an explanation of goodwill and the procedure for performing impairment tests under Point 6.1 and Note 17 of the notes to the consolidated financial statements.
As at 28 February 2018, goodwill in total accounts for € 261.0 million or 11.1% of the total assets.
Goodwill depicts into the cash generating units (CGUs) Fruit, Sugar and Starch. The Company performs impairment testing on these CGUs whenever triggering events are identified but at least on an annual basis. The annual impairment tests are performed at the end of the second quarter of every financial year (31 August). On a quarterly basis, the Company assesses whether objective evidence of an impairment exists. In those cases where such triggering events are identified additional impairment tests are performed.
The company calculates the values in use based on a discounted cash flow method as benchmark for impairment testing. This valuation method is significantly influenced by the assumptions and estimates in respect of the future cash flows. These are derived from the forecast figures approved by the respective management bodies and may be subject to adjustments if necessary. The discount rates applied in the method are also influenced by future changes in market, economic and legal environment. Consequentially the values in use are based on judgment and associated with estimate uncertainties and thus lead to a risk that the goodwill reported in the financial statements may be overstated.
We have assessed the appropriateness of the valuation methods and of the assumption in respect to the forecasts and valuation parameters applied. We hereby consulted with our valuation specialists. When assessing the valuation method applied we followed the model and analysed whether it is adequate for accurately determining the value in use. We further have re-performed the determination of the discount rates and assessed the parameters applied in terms of their appropriateness through comparison with market and industry-specific benchmarks.
The forecasting accuracy has been assessed by the Company by back testing the underlying forecast figures. We have assessed the conclusions drawn with regard to the adequacy of the forecasted figures applied in the impairment tests.
We have reconciled the cash flows used in the impairment tests with the forecasted figures approved by the management bodies, assessed any adjustments made thereto, and analysed their adequacy.
For assessing whether event driven impairment tests are necessary, we have analysed the processes used to identify objective evidence of impairments, as well as the controls established in this connection, as to whether these are appropriate to detect evidence of impairments in a timely manner. Furthermore, we have evaluated the results of the company internal assessment for objective evidence of impairments.
Management is responsible for the preparation and fair presentation of the 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 consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Management is also responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless management either intents to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The audit committee is responsible for overseeing the Group's financial reporting process.
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement – whether due to fraud or error – and to issue an auditor's report that includes our audit opinion. Reasonable assurance represents a high level of assurance, but provides no guarantee that an audit conducted in accordance with the EU Regulation and Austrian Standards on Auditing (and therefore ISAs), will always detect a material misstatement, if any. Misstatements may result from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with the EU Regulation and Austrian Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit.
█ We identify and assess the risks of material misstatement in the consolidated financial statements, whether due to fraud or error, we design and perform audit procedures responsive to those risks and obtain sufficient and appropriate audit evidence to serve as a basis for our audit opinion. The risk of not detecting material misstatements resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or override of internal control.
█ We obtain an understanding of internal control relevant to the audit 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.
█ We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
█ We conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the respective note in the consolidated financial statements. If such disclosures are not appropriate, we will modify our audit opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
█ We evaluate the overall presentation, structure and content of the consolidated financial statements, including the notes, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
█ We obtain sufficient appropriate audit evidence regarding the financial information of the entities and business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
█ We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of our audit as well as significant findings, including any significant deficiencies in internal control that we identify during our audit.
█ We communicate to the audit committee that we have complied with the relevant professional requirements in respect of our independence, that we will report any relationships and other events that could reasonably affect our independence and, where appropriate, the related safeguards.
█ From the matters communicated with the audit committee, we determine those matters that were of most significance in the audit i.e. key audit matters. We describe these key audit matters in our auditor's report unless laws or other legal regulations preclude public disclosure about the matter or when in very rare cases, we determine that a matter should not be included in our audit report because the negative consequences of doing so would reasonably be expected to outweigh the public benefits of such communication.
In accordance with the Austrian Generally Accepted Accounting Principles, the group management report is to be audited as to whether it is consistent with the consolidated financial statements and prepared in accordance with legal requirements. It is our responsibility to determine whether the consolidated non-financial statement has been prepared as part of the group management report, to read and assess whether, based on knowledge gained during our audit, it contains any material inconsistencies with the consolidated financial statements or any apparent material misstatement of fact.
Management is responsible for the preparation of the group management report in accordance with the Austrian Generally Accepted Accounting Principles.
We have conducted our audit in accordance with generally accepted standards on the audit of group management reports as applied in Austria.
In our opinion, the group management report is consistent with the consolidated financial statements and has been prepared in accordance with legal requirements. The disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.
Based on our knowledge gained in the course of the audit of the consolidated financial statements and our understanding of the Group and its environment, we did not note any material misstatements in the group management report.
Management is responsible for other information. Other information is all information provided in the annual report, other than the consolidated financial statements, the group management report and the auditor's report. We expect the annual report to be provided to us after the date of the auditor's report.
Our opinion on the consolidated financial statements does not cover other information and we do not provide any kind of assurance thereon.
In conjunction with our audit, it is our responsibility to read this other information as soon as it becomes available, to assess whether, based on knowledge gained during our audit, it contains any material inconsistencies with the consolidated financial statements or any apparent material misstatement of fact.
At the Annual General Meeting dated 7 July 2017, we were elected as group auditors. We were appointed by the Supervisory Board on 4 December 2017. We have been the Group's auditors from the year ended 30 September 1995, without interruption.
We declare that our opinion expressed in the "Report on the Consolidated Financial Statements" section of our report is consistent with our additional report to the Audit Committee, in accordance with Article 11 EU Regulation.
We declare that we have not provided any prohibited non-audit services (Article 5 Paragraph 1 EU Regulation) and that we have ensured our independence throughout the course of the audit, from the audited Group.
The engagement partner is Mr. Wilhelm Kovsca.
Vienna, 23 April 2018
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
signed by:
Wilhelm Kovsca Wirtschaftsprüfer (Austrian Chartered Accountant)
AGRANA Beteiligungs-AG under Austrian Commercial Code (UGB)
Notes to the parent company financial statements1 164
Statement by the members of the Management Board 184
for the year ended 28 February 2018
Überblick
Geschäftsverlauf und wirtschaftliche Lage der AGRANA Beteiligungs-Aktiengesellschaft Beteiligungen 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
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 verarbeitet in allen drei Geschäftssegmenten auch agrarische Rohstoffe aus kontrolliert biologischem Anbau und ist damit einer der größten Bio-Produzenten Europas.
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:
Rund 8.700 Mitarbeiter (FTEs)1 an 57 Produktionsstandorten auf allen Kontinenten erwirtschafteten im Geschäftsjahr 2017|18 einen Konzernumsatz von rund 2,6 Mrd. €. AGRANA wurde 1988 gegründet und notiert seit 1991 an der Wiener Börse.
1 Durchschnittlich im Geschäftsjahr beschäftigte Vollzeitäquivalente (FTEs - Full-time equivalents)
basierend auf dem Jahresabschluss nach UGB zum 28. Februar 2018
| Veränderung | ||||
|---|---|---|---|---|
| Geschäftsentwicklung | 2017/18 | 2016/17 | in % | |
| Umsatzerlöse | t€ | 32.079 | 31.873 | 0,6% |
| Sonstige betriebliche Erträge | t€ | 81 | 258 | -68,6% |
| Betriebsleistung | t€ | 32.160 | 32.131 | 0,1% |
| Operatives Ergebnis (Betriebserfolg) | t€ | -7.163 | -16.182 | 55,7% |
| Operative Marge ¹ | % | -22,3% | -50,4% | |
| Beteiligungserträge | t€ | 76.040 | 76.118 | -0,1% |
| Finanzerfolg | t€ | 78.672 | 78.656 | 0,0% |
| Ergebnis der gewöhnlichen | ||||
| Geschäftstätigkeit | t€ | 71.509 | 62.473 | 14,5% |
| Jahresüberschuss | t€ | 71.624 | 63.550 | 12,7% |
| Investitionen in Sachanlagen und | ||||
| immaterielle Vermögenswerte | t€ | 1.383 | 724 | 91,0% |
| Investitionen in Finanzanlagen | t€ | 0 | 0 | x |
¹ Operative Marge = Operatives Ergebnis / Betriebsleistung
Die Umsatzerlöse der AGRANA lagen im Geschäftsjahr 2017|18 mit 32.079 t€ insgesamt auf dem Vorjahresniveau (+206 t€ bzw +0,6%), sowohl bei den Erträgen aus Lizenzeinnahmen (+174 t€ bzw +1,1%), als auch bei den Erträgen aus Konzernverrechnungen (+61 t€ bzw +0,4%). Die Umsatzsteigerungen bei den Erträgen aus Lizenzeinnahmen sind auf die Umsatzsteigerungen der einzelnen Tochtergesellschaften zurückzuführen. Grundsätzlich war der Umsatz im Segment Zucker u.a. zuckerpreisbedingt leicht rückläufig und im Segment Stärke auch aufgrund höherer Hauptproduktmengen geringfügig steigend. Im Segment Frucht lagen die Umsatzerlöse auf dem Vorjahresniveau.
Der Betriebserfolg (Das operatives Ergebnis) lag mit 9.019 t€ um 55,7 % deutlich über dem Ergebnis des Vorjahres. Diese Veränderung ist durch den Wegfall der belastenden Einmaleffekte erklärbar. Im Vorjahr wurde die Berechnungsmethode der Personalrückstellungen im Zuge des in Kraft treten des RÄG 2014 geändert, was zum deutlichen Anstieg der Personalaufwendungen führte. Die Sonstigen Betrieblichen Aufwendungen lagen im Vorjahr deutlich über dem durchschnittlichen Niveau, bedingt durch die einmaligen Aufwendungen für die Kapitalerhöhung.
Die Beteiligungserträge und das Finanzergebnis verblieben im Geschäftsjahr 2017|18 stabil.
| Veränderung | ||||
|---|---|---|---|---|
| Bilanzkennzahlen | 2017/18 | 2016/17 | in % | |
| Bilanzsumme | t€ | 837.531 | 927.205 | -9,7% |
| Grundkapital | t€ | 113.531 | 113.531 | 0,0% |
| Immaterielle Vermögensgegenstände | ||||
| und Sachanlagen | t€ | 2.063 | 1.764 | 17,0% |
| Anteile an verbundenen Unternehmen | t€ | 417.025 | 417.025 | 0,0% |
| Andere Finanzanlagen | t€ | 42.758 | 126.259 | -66,1% |
| Eigenkapital | t€ | 762.589 | 753.454 | 1,2% |
| Eigenkapitalquote ¹ | % | 91,1% | 81,3% | 12,0% |
| Haftungsverhältnisse | t€ | 175.037 | 87.823 | 99,3% |
¹ Eigenkapitalquote = Eigenkapital / Gesamtkapital
Die immateriellen Vermögensgegenstände und Sachanlagen erhöhten sich im Vergleich zum Vorjahr um 299 t€. Den Investitionen in Höhe von 1.383 t€ stehen Abschreibungen in Höhe von TEUR 1.070 gegenüber. Die wesentlichen Veränderungen betreffen Zu- und Abgänge im Fuhrpark und bei EDV-Anlagen.
Die Anteile an verbundenen Unternehmen sind im Vergleich zum Vorjahr unverändert.
Andere Finanzanlagen beinhalten Ausleihungen an verbundene Unternehmen und gingen im Geschäftsjahr 2017|18 um 83.500 t€ zurück, analog zu den Verbindlichkeiten gegenüber Kreditinstitute.
Die Eigenkapitalquote von 91,1 % (Vorjahr: 81,3 %) zeigt eine solide Eigenkapitalausstattung und Bilanzstruktur der Gesellschaft.
| Veränderung | ||||
|---|---|---|---|---|
| 2017/18 | 2016/17 | in % | ||
| Cashflow aus laufender | ||||
| Geschäftstätigkeit | t€ | 83.785 | 48.809 | 71,7% |
| Cashflow aus Investitionstätigkeit | t€ | 82.169 | -661 | -12531,0% |
| Cashflow aus Finanzierungstätigkeit | t€ | -145.989 | 85.213 | -271,3% |
| Veränderung der flüssigen Mittel | t€ | 19.965 | 133.361 | -85,0% |
| Bestand an flüssigen Mittel¹ | t€ | 262.756 | 242.791 | 8,2% |
2017/18: t€ 262.711 ; 2016/17: t€ 242.731 ¹ einschließlich Forderungen gegenüber dem Konzern-Cash-Pooling mit AGRANA Group-Services GmbH
Der Cash-Flow aus der Investitionstätigkeit veränderte sich um 82.830 t€ auf 82.169 t€. Die Veränderung ist auf die Verringerung der Forderungen gegenüber dem Konzern-Cash-Pooling zurückzuführen. Dies entspricht der Veränderung des Cash-Flow aus der Finanzierungstätigkeit.
Der Cash-Flow aus der Finanzierungstätigkeit resultiert aus der Dividendenauszahlung von rd. 62.489 t€ (VJ: 56.808 t€) und der Tilgung von Teilverbindlichkeiten zum Schuldscheindarlehen in Höhe von 83.500 t€. Im Geschäftsjahr 2016|17 setzte sich dieser aus der Dividendenzahlung (Abfluss 56.808 t€) sowie der Kapitalerhöhung in Höhe von 142.021 t€ (Zufluss) zusammen.
Aufgrund der Erhöhung des Nominalkapitals im Geschäftsjahr 2016|17, stiegen die Dividendenzahlungen bei unveränderte Dividende pro Aktie um insgesamt 5.681 t€
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.
Die AGRANA Zucker GmbH, Wien, ist als Dachgesellschaft für die Zuckeraktivitäten des Konzerns operativ in Österreich tätig und fungiert gleichzeitig als Holding für die Zucker-Beteiligungen in Ungarn, Tschechien, der Slowakei, Rumänien, Bulgarien und Bosnien und Herzegowina.
| Veränderung | ||||
|---|---|---|---|---|
| 2017/18 | 2016/17 | in % / pp | ||
| Umsatzerlöse (brutto) | t€ | 730.378 | 748.151 | -2,4% |
| Umsätze zwischen den Segmenten | t€ | -77.818 | -76.230 | -2,1% |
| Umsatzerlöse | t€ | 652.560 | 671.921 | -2,9% |
| EBITDA 1 | t€ | 64.455 | 55.188 | 16,8% |
| Operatives Ergebnis | t€ | 38.762 | 30.983 | 25,1% |
| Ergebnis aus nach der Equity-Methode einbe zogenen Gemeinschaftsunternehmen |
t€ | -1.091 | 2.442 | -144,7% |
| Ergebnis aus Sondereinflüssen | t€ | -2.912 | -9.037 | 67,8% |
| Ergebnis der Betriebstätigkeit (EBIT) | t€ | 34.759 | 24.388 | 42,5% |
| EBIT - Marge | % | 5,3 | 3,6 | 1,7 |
| Investitionen 2 | t€ | 32.084 | 23.259 | 37,9% |
| Mitarbeiter 3 |
2.109 | 2.107 | 0,1% |
1 Operatives Ergebnis vor operativen Abschreibungen
2 In Sachanlagen und immaterielle Vermögenswerte, ausgenommen Geschäfts-/Firmenwerte
3 Durchschnittlich im Geschätsjahr beschäftigte Vollzeitäquivalente (FTEs - Full-time equivalents)
Der Absatz der Zuckerprodukte im Geschäftsjahr 2017|18 lag leicht unter dem Vorjahresniveau, wobei sich die jeweiligen Märkte unterschiedlich entwickelten. Während die Verkäufe an die Retailkunden leicht im Plus lagen, ging der Absatz an die Industrie zurück. Die Exportvolumina - Verkäufe innerhalb wie auch außerhalb der EU – konnten nicht den Vorjahreswert erreichen.
Der Zuckerumsatz lag auch aufgrund der im Jahresdurchschnitt niedrigeren Verkaufspreise unter dem Niveau des Vorjahres. Besonders deutlich war die Zuckerpreisreduktion bei den Groß- und Einzelhandelspreisen in den östlichen Ländern sichtbar; in Österreich konnte das Niveau des Vorjahres im Wesentlichen gehalten werden.
Die positive Ergebnisentwicklung war im Wesentlichen durch gestiegene Zuckerverkaufspreise im Vergleich zur Vorjahresperiode in den ersten sieben Monaten des Geschäftsjahres verursacht. Seit dem dritten Quartal, dem ersten Quartal im neuen Zuckerwirtschaftsjahr 2017|18 (1. Oktober 2017 bis 30. September 2018), ist die operative Profitabilität deutlich rückläufig.
Das Ergebnis der AGRANA-STUDEN-Gruppe, das nach der Equity-Methode in den Konzernabschluss einbezogen wird, wirkte sich 2017|18 negativ auf das EBIT des Segmentes Zucker aus. Die Verschlechterung des Ergebnisbeitrags im Vergleich zum Vorjahr (-3,5 Mio. €) ist auf das Ende der Zuckerquoten und die dadurch ausgelösten, negativen Folgen für die Zuckerraffination am Westbalkan zurückzuführen - niedrigere Rübenzuckerpreise führten u.a. dazu, dass die AGRANA-STUDEN-Raffinerie am Standort in Bosnien Anfang November 2017 auf "stand-by" gestellt wurde.
Das im Geschäftsjahr 2017|18 ausgewiesene Ergebnis aus Sondereinflüssen in Höhe von -2,9 Mio. € resultierte im Wesentlichen aus Kosten für Restrukturierungsmaßnahmen in Höhe von 4,1 Mio. €, welchen außerordentliche Erträge aus der Rückzahlung der zu hoch erhobenen Zuckerproduktionsabgabe in den Zuckerwirtschaftsjahren 1999|00 und 2000|01 (+1,9 Mio. €) gegenüberstanden. Im Vorjahr setzte sich das negative Ergebnis aus Sondereinflüssen in Höhe von 9,0 Mio. € aus Steuerschulden in Zusammenhang mit einer Betriebsprüfung in Rumänien (-11,5 Mio. €), einer Rückstellung für eine Rechtsstreitigkeit in Rumänien (-1,5 Mio. €) und aus der Beilegung eines Rechtsstreites in Tschechien (+4,0 Mio. €; Auflösung einer Rückstellung) zusammen.
Das Segment Stärke umfasst die beiden vollkonsolidierten Gesellschaften AGRANA Stärke GmbH, Wien, mit den drei österreichischen Fabriken in Aschach (Maisstärke), Gmünd (Kartoffelstärke) und Pischelsdorf (integrierte Weizenstärke- und Bioethanolanlage) sowie die AGRANA TANDAREI S.r.l. mit einem Werk in Rumänien (Maisverarbeitung). Zudem führt und koordiniert die AGRANA Stärke GmbH gemeinsam mit dem Joint Venture-Partner Archer Daniels Midland Company, Chicago|USA, die Gemeinschaftsunternehmen der HUNGRANA-Gruppe (ein Werk in Ungarn; Herstellung von Stärke-, Verzuckerungsprodukten und Bioethanol), die nach der Equity-Methode in den Konzernabschluss einbezogen werden.
| Veränderung | ||||
|---|---|---|---|---|
| 2017/18 | 2016/17 | in % / pp | ||
| Umsatzerlöse (brutto) | t€ | 762.308 | 744.194 | 2,4% |
| Umsätze zwischen den Segmenten | t€ | -9.993 | -10.272 | 2,7% |
| Umsatzerlöse | t€ | 752.315 | 733.922 | 2,5% |
| EBITDA 1 | t€ | 76.486 | 70.072 | 9,2% |
| Operatives Ergebnis | t€ | 49.744 | 48.075 | 3,5% |
| Ergebnis aus nach der Equity-Methode einbe zogenen Gemeinschaftsunternehmen |
t€ | 30.486 | 28.147 | 8,3% |
| Ergebnis der Betriebstätigkeit (EBIT) | t€ | 80.230 | 76.222 | 5,3% |
| EBIT - Marge | % | 10,7 | 10,4 | 0,3 |
| Investitionen 2 | t€ | 59.427 | 57.577 | 3,2% |
| Mitarbeiter 3 |
959 | 893 | 7,4% |
1 Operatives Ergebnis vor Abschreibungen
2 In Sachanlagen und immaterielle Vermögenswerte, ausgenommen Geschäfts-/Firmenwerte
3 Durchschnittlich im Geschätsjahr beschäftigte Vollzeitäquivalente (FTEs - Full-time equivalents)
Im Segment Stärke stieg der Umsatz im Geschäftsjahr 2017|18 gegenüber dem Vorjahr um 2,5 %. Bei den Hauptprodukten betrug die Umsatzsteigerung rund 6 %, während die Umsatzerlöse mit Nebenprodukten, insbesondere aufgrund der geringeren Volumina im Futtermittel-Handel, moderat sanken. Die Absatzmenge lag insgesamt in etwa auf Vorjahresniveau, wobei die Menge an verkauften Hauptprodukten um knapp 4 % gesteigert werden konnte. Zu einem großen Teil basierte das Wachstum auf Produktionszuwächsen infolge der Inbetriebnahme der Werkserweiterung in Aschach|Österreich (Stärke- und Verzuckerungsprodukte), aber auch alle anderen Anlagen waren auf hohem Niveau ausgelastet.
Die Inbetriebnahme der Anlagenerweiterung in Aschach führte zu einmaligen Anlaufkosten. Konkret resultierten die projektbezogenen Investitionen und die zusätzlichen Mitarbeiter in deutlich gestiegenen Anlagenabschreibungen und Personalaufwendungen. Ergebnisrelevant wurde dies im Anstieg des EBITDA um 9,2 % auf 76,5 Mio. €. Gleichzeitig erhöhte sich das operative Ergebnis um 3,5 % auf 49,8 Mio. €.
Im Geschäftsjahr 2017|18 sank der Umsatz der ungarischen HUNGRANA-Gruppe um 3,2 %, wobei im Bereich Isoglukose Preissteigerungen erzielt werden konnten. Niedrigeren Produktions- und Absatzmengen standen höhere Verkaufspreise bei Bioethanol gegenüber, was insgesamt aber dennoch zu einem Umsatzrückgang bei HUNGRANA führte. Bei Rohstoffpreisen auf Vorjahresniveau und aufgrund eines reduzierten Körperschaftssteuersatzes in Ungarn lag der Jahresüberschuss um 8,3 % über dem Vorjahreswert und der Ergebnisbeitrag für das Segment Stärke konnte somit auch moderat gesteigert werden.
Die AGRANA Internationale Verwaltungs- und Asset-Management GmbH, Wien, ist die Dachgesellschaft für das Segment Frucht. Die Koordination und operative Führung für den Bereich Fruchtzubereitungen erfolgt durch die Holdinggesellschaft AGRANA Fruit S.A.S. mit Firmensitz in Mitry-Mory|Frankreich. Im Bereich Fruchtsaftkonzentrate operiert die AUSTRIA JUICE GmbH mit Sitz in Kröllendorf/Allhartsberg|Österreich als operative Holding.
| Veränderung | |||
|---|---|---|---|
| 2017/18 | 2016/17 | in % / pp | |
| Umsatzerlöse (brutto) t€ |
1.161.898 | 1.156.035 | 0,5% |
| Umsätze zwischen den Segmenten t€ |
-456 | -582 | 21,6% |
| Umsatzerlöse t€ |
1.161.442 | 1.155.453 | 0,5% |
| EBITDA 1 t€ |
113.218 | 109.952 | 3,0% |
| Operatives Ergebnis t€ |
75.639 | 71.757 | 5,4% |
| Ergebnis der Betriebstätigkeit (EBIT) t€ |
75.639 | 71.757 | 5,4% |
| % EBIT - Marge |
6,5 | 6,2 | 0,3 |
| Investitionen 2 t€ |
49.356 | 33.822 | 45,9% |
| Mitarbeiter 3 |
5.610 | 5.638 | -0,5% |
1 Operatives Ergebnis vor Abschreibungen
2 In Sachanlagen und immaterielle Vermögenswerte, ausgenommen Geschäfts-/Firmenwerte
3 Durchschnittlich im Geschätsjahr beschäftigte Vollzeitäquivalente (FTEs - Full-time equivalents)
Der Umsatz im Geschäftsbereich Fruchtzubereitungen stieg um knapp 2 %, was v.a. auf eine gestiegene Verkaufsmenge zurückzuführen war. Negativ beeinflussten den Umsatzerlösanstieg Fremdwährungseffekte in einzelnen Ländern, am stärksten in Ägypten, Argentinien, China, Mexiko, in der Türkei, der Ukraine und in den USA.
Umsatzsteigerungen gab es in allen AGRANA-Regionen mit Ausnahme von Nordamerika und der Region Naher Osten/Afrika/Indien (IMEA). In der Region Osteuropa (Russland, Ukraine) blieb die Geschäftsentwicklung trotz des politisch herausfordernden Umfeldes positiv. Auch in der EU, als umsatzmäßig bedeutendster Region, konnten trotz des rückläufigen Marktes höhere Absätze erzielt werden.
Ergebnismäßig verzeichnete der Bereich Fruchtzubereitungen in allen Regionen mit Ausnahme von IMEA ein Plus. Vor allem die Regionen Europa, Lateinamerika und Asien/Australien konnten eine deutliche EBIT-Verbesserung erzielen.
2017|18 wurde die Integration des argentinischen Unternehmens Main Process S.A. abgeschlossen und die Fruchtzubereitungsproduktion in Argentinien am neuen Standort konzentriert. Die im Vorjahr neu gegründete indische Gesellschaft hat kürzlich mit dem Verkauf von Purees begonnen; die Fruchtzubereitungsproduktion wurde zum Bilanzstichtag noch nicht aufgenommen.
Im Juli 2017 wurde die AGRANA Fruit (Jiangsu) Company Limited, Changzhou, als neue Gesellschaft im Süden Chinas, in der Region Shanghai, gegründet, und im Q3 2017|18 mit dem Bau eines neuen Werkes begonnen, das im November 2018 eröffnet werden soll.
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.
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.
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.
Die AGRANA Group Services GmbH erfüllt im Konzern die Finanzierungsfunktion und betreibt das Cash-Pooling. Sie ist, wie die Holding, dem Segment Zucker zugeordnet.
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…
AGRANA entwickelte ihr Nachhaltigkeitsverständnis auf Basis der regelmäßigen Interaktion mit ihren Stakeholder-Gruppen.
Ihre Aktivitäten im Bereich Nachhaltigkeit sind in folgende Handlungsfelder entlang der Wertschöpfungskette gegliedert:
Um Nachhaltigkeitsaspekte in der agrarischen Lieferkette unabhängig vom Beschaffungsmodell strukturiert bearbeiten und v.a. dokumentieren zu können, ist die AGRANA Beteiligungs-AG bereits seit Juli 2014 aktives Mitglied bei SAI, einer im Jahr 2002 gegründeten Brancheninitiative der Lebensmittelindustrie, und nimmt mit ihren Segmenten Zucker, Stärke und Frucht an allen für ihre Rohstoffe relevanten Arbeitsgruppen und Komitees teil.
SAI bietet industriellen Veredlern landwirtschaftlicher Rohstoffe wie AGRANA mehrere hilfreiche Instrumente v.a. zur Evaluierung und Dokumentation der Einhaltung guter Umwelt- und Sozialkriterien in der agrarischen Lieferkette bzw. zum Vergleich der Wertigkeit unterschiedlicher Nachweise bzw. internationaler Zertifizierungen an.
Im Geschäftsjahr 2017|18 wurden die Energiemanagementsysteme der bereits im Jahr 2014|15 nach ISO 50001 zertifizierten Produktionsstandorte des Segmentes Zucker rezertifiziert, womit 100 % aller Produktionsstandorte in den GRI-Berichtsgrenzen über eine aktuelle Zertifizierung verfügen.
Die Prinzipien der internationalen Norm für Qualitätsmanagementsysteme ISO 9001 bilden die Basis des AGRANA-Qualitätsmanagementsystems. Ergänzt wird das System durch zahlreiche Zertifizierungen für Lebensmittelsicherheit und Produktschutz. Die weltweit wichtigsten Standards in diesem Bereich bei AGRANA sind FSSC 22000 (Food Safety System Certification), ISO 22000 und IFS (International Food Standard). Je nach Land oder Region sowie Kundennachfrage werden noch zusätzliche Zertifizierungen wie Bio, gentechnikfrei, Kosher (nach jüdischen Speisegesetzen) und Halal (nach islamischen Speisegesetzen) angeboten. Die wesentlichen Standards für Futtermittelsicherheit sind der GMP Feed- und der EFISC Feed-Standard. Insgesamt verfügten im Geschäftsjahr 2017|18 100 % aller Produktionsstandorte über mindestens eine dieser bzw. die jeweils lokal relevanten internationalen Zertifizierungen.
In einem hochkompetitiven Marktumfeld ist es für AGRANA von zentraler Bedeutung, Markttrends zu erkennen, durch Produktinnovationen die Bedürfnisse der Märkte zu erfüllen und maßgeschneiderte Kundenlösungen zu entwickeln. In enger Partnerschaft mit ihren Kunden arbeitet AGRANAs Forschung und Entwicklung (F&E) laufend an neuen Technologien, Spezialprodukten und innovativen Anwendungsmöglichkeiten bestehender Produkte und unterstützt somit ihre auf nachhaltigen Erfolg ausgelegte Unternehmensstrategie.
Das AGRANA Research & Innovation Center (ARIC) in Tulln|Österreich ist neben 16 lokalen NPD2 - Centern der zentrale Forschungs- und Entwicklungshub des Konzerns für die Bereiche Zucker, Stärke und Frucht. Das ARIC ist als eigenständiges Unternehmen in der AGRANA-Gruppe organisiert und eine 100%-Tochter der AGRANA Beteiligungs-AG, deren Ziel es ist, innovative Produkte aus den Rohstoffen Zuckerrübe, Kartoffel, Mais, Wachsmais, Weizen und aus Früchten zu entwickeln. Das ARIC ist national und international als Inhouse-F&E-Dienstleister und -Serviceanbieter in den Bereichen Zuckertechnologie, Lebensmitteltechnologie, Stärketechnologie, Mikrobiologie, Biotechnologie und Fruchtzubereitungsentwicklung tätig. Weiters bietet die Forschungsstätte ihr spezielles F&E-Know-how auch Dritten an und fungiert als staatlich akkreditiertes Labor für die Qualitätsprüfung von Zuckerrüben.
Die Zusammenarbeit von F&E-Spezialisten aus unterschiedlichen Bereichen (Zucker, Stärke und Frucht) unter einem Dach ermöglicht nicht nur verwaltungstechnische Synergieeffekte, sondern fördert auch den Austausch unterschiedlicher Forschergruppen, insbesondere zu bereichsübergreifenden Themen. Durch die sich ergänzenden Erfahrungen ergeben sich Vorteile bei segmentübergreifenden Forschungsschwerpunkten wie z.B. Technologien, Verdicker und Aromen, Mikrobiologie, Produktqualität und -sicherheit sowie Bio-Produkte.
| 2017 18 | 2016 17 | ||
|---|---|---|---|
| F&E-Aufwendungen (intern und extern) (in Mio. €) | 17,0 | 15,9 | |
| F&E-Quote1 (in %) | 0,66 | 0,62 | |
| Mitarbeiter in F&E (Köpfe) | 251 | 221 |
1 F&E-Aufwendungen gemessen am Konzernumsatz
2 New Product Development
Die gesamte AGRANA-Gruppe beschäftigte im Geschäftsjahr 2017|18 durchschnittlich 8.730 (Vorjahr: 8.569) Mitarbeiter (Köpfe), davon 2.251 (Vorjahr: 2.152) in Österreich und 6.479 (Vorjahr: 6.417) international.
Die Förderung und Anerkennung von Leistung ist ein wichtiger Bestandteil der Personalstrategie und stellt einen Beitrag zum Unternehmenserfolg dar. Um die strategischen und operativen Ziele des Unternehmens zu erreichen, kommt bei AGRANA für das Management ein konzernweit implementiertes Performance-Management-System zum Einsatz. Neben Finanz- und Ertragszielen umfasst die variable Vergütung auch individuelle Zielvereinbarungen, um herausragende individuelle Leistungen zu honorieren und zu fördern.
Die Schwerpunkte im Bereich Aus- und Weiterbildung lagen im Geschäftsjahr 2017|18 wieder in der Führungskräfteentwicklung sowie in der Entwicklung von Fachexperten-Trainings einzelner ausgewählter Funktionsbereiche. AGRANA bot im Geschäftsjahr 2017|18 Lehrlingen eine Ausbildungsmöglichkeit – u.a. als Maschinenbautechniker, Elektrotechniker, Elektrobetriebs- und Prozessleittechniker, Metalltechniker, Chemielabortechniker, Lebensmitteltechniker, Mechatroniker, Industriekauffrau/-mann sowie als Informationstechnologietechniker an.
Des Weiteren wurden zwei internationale Traineeprogramme für die Bereiche Einkauf und Produktion erfolgreich umgesetzt. Für diese Programme hat AGRANA im Juli 2017 den TraineeNet Award 2017 für "echte & faire Traineeprogramme" erhalten. Im Rahmen dieser Zertifizierung wurde überprüft, ob das Traineeprogramm den definierten Anforderungen (akademischer Abschluss, Job Rotation, faires Gehalt, Talentförderung) an ein Traineeprogramm tatsächlich entspricht. Die AGRANA-Traineeprogramme basieren auf einer intensiven Konzeptionsarbeit und beinhalten internes Mentoring mit AGRANA-Mentoren, Projektarbeiten, Job-Rotationen innerhalb der AGRANA-Gruppe sowie intensive Trainingsmodule.
Im Geschäftsjahr 2017|18 wurden 25 Mitarbeiter und Führungskräfte aus dem Konzern für das bereits zum sechsten Mal stattfindende internationale Nachwuchsführungskräfte-Programm AGRANA Competencies Training (ACT) ausgewählt. Es richtet sich an Kollegen, denen hohes Potenzial, ausgezeichnete Leistungen und überdurchschnittlicher Leistungswille attestiert werden. Im Jänner 2018 haben die Mitarbeiter das ACT V beendet. Nach Abschluss des Programms und als neue Initiative wurde den Nachwuchsführungskräften die Möglichkeit gegeben, für ihre weitere interne Entwicklung bei AGRANA einen AGRANA-Mentor auf Senior-Management-Level zur Verfügung gestellt zu bekommen.
Arbeitssicherheit ist AGRANA als industriellem Produktionsunternehmen ein besonderes Anliegen. Zur besseren Vergleichbarkeit und Analyse von Arbeitsunfällen sowie zur Umsetzung von Verbesserungsmaßnahmen erhebt AGRANA weltweit einheitlich definierte Kennzahlen zur Arbeitssicherheit und Gesundheit.
Die Vereinbarkeit von Beruf und Familie ist für AGRANA im Rahmen des sozialen Bewusstseins und der Nachhaltigkeit ein wichtiger Bestandteil der Personalstrategie.
Aus diesem Grund ist AGRANA auch im Frühjahr 2016 dem vom Bundesministerium für Familien und Jugend initiierten österreichischen Netzwerk "Unternehmen für Familien" beigetreten.
Konzernweit spiegelt sich dies in mehreren Initiativen und Angeboten für die Mitarbeiter wider. Telearbeit, Förderung bzw. auch das Angebot von Kinderbetreuung (inklusive spezieller Angebote in den Ferien), variable Arbeitszeit und auch ein Eltern-Kind-Büro am Standort in Wien sind Bestandteile davon. Weiters werden auch Veranstaltungen, gemeinsame Essen und Sportaktivitäten unter Einbindung der Familien veranstaltet.
Der Vorstand der AGRANA-Gruppe ist sich der Bedeutung eines aktiven Risikomanagements bewusst. Dieses verfolgt das grundsätzliche Ziel, Chancen- und Risikopotenziale ehestmöglich zu erkennen und geeignete Maßnahmen zur Erhaltung der Ertragskraft sowie zur Sicherung des Fortbestandes der Unternehmensgruppe zu setzen.
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:
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 verändernde Marktpreise für das gegenwärtige und folgende Geschäftsjahr. Die einzelnen Risikoparameter werden laufend der aktuellen Planung bzw. dem aktuellen Forecast gegenübergestellt, um die Auswirkungen auf das operative Ergebnis berechnen zu können. Neben der laufenden Berichterstattung diskutieren die Verantwortlichen aus den Geschäftsbereichen regelmäßig direkt mit dem Vorstand über die wirtschaftliche Situation sowie den Einsatz risikoreduzierender Maßnahmen.
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. Zudem wird für das laufende Geschäftsjahr die aggregierte Risikoposition der AGRANA-Gruppe mittels einer im Risikomanagement üblichen Berechnung, der "Monte-Carlo-Simulation", ermittelt. So kann beurteilt werden, ob ein Zusammenwirken oder die Kumulation von Einzelrisiken ein bestandsgefährdendes Risiko darstellen könnte. Die Ergebnisse werden an den Vorstand sowie den Prüfungsausschuss des Aufsichtsrates berichtet.
Für die Segmente der AGRANA-Gruppe wurden Risikomanagement-Verantwortliche definiert, die in Abstimmung mit dem Vorstand im Bedarfsfall Maßnahmen zur Schadensminimierung einleiten sollen.
Die Funktionsfähigkeit des Risikomanagements gemäß Regel 83 des Österreichischen Corporate Governance Kodex (ÖCGK) wird jährlich vom Wirtschaftsprüfer geprüft und als Ergebnis der Beurteilung ein abschließender Bericht über die Funktionsfähigkeit des unternehmensweiten Risikomanagements erstellt. Für die Überprüfung wurden die Empfehlungen des "Committee of Sponsoring Organizations of the Treadway Commission" (COSO) als Referenzmodell herangezogen.
AGRANA sieht im verantwortungsvollen Umgang mit Chancen und Risiken eine wesentliche Grundlage für eine ziel- und wertorientierte sowie nachhaltige Unternehmensführung. Die Risikopolitik der Unternehmensgruppe zielt auf risikobewusstes Verhalten ab und sieht klare Verantwortlichkeiten, Unabhängigkeit im Risikomanagement und die Durchführung interner Kontrollen vor.
Risiken dürfen konzernweit nur dann eingegangen werden, wenn sie sich aus dem Kerngeschäft der AGRANA-Gruppe ergeben und nicht ökonomisch sinnvoll vermieden oder abgesichert werden können. Sie sind möglichst zu minimieren, wobei auf ein ausgewogenes Verhältnis von Risiko und Chance Bedacht zu nehmen ist. Das Eingehen von Risiken außerhalb des operativen Geschäftes ist ohne Ausnahmen verboten.
Die AGRANA Beteiligungs-AG ist für die konzernweite Koordinierung und Umsetzung der vom Vorstand festgelegten Maßnahmen zum Risikomanagement verantwortlich. Der Einsatz von Hedge-Instrumenten ist nur zur Absicherung von operativen Grundgeschäften und Finanzierungstätigkeiten, nicht jedoch zu Spekulationszwecken, erlaubt. Über den Bestand und die Werthaltigkeit von Hedge-Kontrakten wird regelmäßig an den Vorstand berichtet.
Die Unternehmensgruppe ist Risiken ausgesetzt, die sich sowohl aus dem operativen Geschäft als auch von nationalen und internationalen Rahmenbedingungen ableiten.
AGRANA ist auf ausreichende Verfügbarkeit agrarischer Rohmaterialien in der benötigten Qualität angewiesen. Neben einer möglichen Unterversorgung mit geeigneten Rohstoffen stellen deren Preisschwankungen, wenn sie nicht oder nicht ausreichend an die Abnehmer weitergegeben werden können, ein Risiko dar. Wesentliche Treiber für Verfügbarkeit, Qualität und Preis sind wetterbedingte Gegebenheiten in den Anbaugebieten, die Wettbewerbssituation, regulatorische und gesetzliche Regelungen sowie die Veränderung der Wechselkurse relevanter Währungen.
AGRANA sieht in der Produktion und im Vertrieb von qualitativ hochwertigen und sicheren Produkten eine Grundvoraussetzung für langfristig wirtschaftlichen Erfolg. Das Unternehmen verfügt über ein streng ausgelegtes und laufend weiterentwickeltes Qualitätsmanagement, das den Anforderungen der relevanten lebensmittelrechtlichen Standards und den kundenseitig festgelegten Kriterien entspricht und den gesamten Prozess von der Rohstoffbeschaffung über die Produktion bis zur Auslieferung der gefertigten Waren umfasst. Die Einhaltung der Qualitätsstandards wird regelmäßig durch interne und externe Audits verifiziert. Darüber hinaus sollen abgeschlossene Produkthaftpflichtversicherungen allfällige Restrisiken abdecken.
AGRANA steht im Rahmen ihrer globalen Tätigkeit im intensiven Wettbewerb mit regionalen wie auch überregionalen Mitbewerbern. Der Eintritt neuer Mitbewerber bzw. die Schaffung zusätzlicher Produktionskapazitäten bestehender Konkurrenten kann die Wettbewerbsintensität in Zukunft verstärken.
Die eigene Marktposition wird laufend beobachtet, sodass etwaig notwendige korrigierende Maßnahmen schnell eingeleitet werden können. Entsprechend der Nachfrage und auch aufgrund anderer Einflussfaktoren werden die Kapazitäten und die Kostenstrukturen zur Erhaltung der Wettbewerbsfähigkeit auf den Kernmärkten stetig angepasst. Das frühzeitige Erkennen von Änderungen des Nachfrage- und Konsumverhaltens basiert auf stetigen Analysen von Planabweichungen. In diesem Zusammenhang stehen auch neue technologische Entwicklungen und Produktionsprozesse am Markt unter Beobachtung, die in Zukunft zu einer teilweisen Rückwärtsintegration von Kunden in Kernbereiche einzelner Segmente der AGRANA-Gruppe führen können.
AGRANA tätigt zur Stärkung bzw. zum Ausbau bestehender Marktpositionen umfangreiche Investitionen in allen Segmenten. Darüber hinaus werden Investitionen in neue Märkte evaluiert und vorgenommen.
Die politisch noch instabile Situation zwischen Ukraine und Russland kann sich negativ auf das Marktumfeld im Segment Frucht auswirken. Aus derzeitiger Sicht verzeichnet die Region jedoch nach wie vor eine stabile Ertragslage.
Im Rahmen des Risikomanagements werden bereits im Vorfeld mögliche Szenarien und ihre Auswirkungen analysiert und bewertet.
Zuckermarktordnung: Seit 1. Oktober 2017 gibt es keinen Rübenmindestpreis mehr und die Quotenregelung für Zucker und Isoglukose wurde aufgehoben. Beide Produkte können nun in der EU ohne quantitative Beschränkungen erzeugt und verkauft werden. Das Antizipieren der Beendigung der Quotenregelung im Herbst 2017 hat bereits im Vorfeld den europäischen Zuckermarkt durch eine Ausweitung der Anbauflächen im Zuckerwirtschaftsjahr (ZWJ) 2017|18 beeinflusst. Des Weiteren haben hohe Ernteerträge pro Hektar im ZWJ 2017|18 das Zuckerangebot im EU-Raum erhöht. Mit dem Ende der Quotenregelung wird auch die teilweise Substitution von kristallinem Zucker durch Isoglukose erwartet.
Mit dem Auslaufen der Quotenregelung ist mit einer weiterhin hohen Rübenzuckerproduktion, speziell in Gunstlagen, zu rechnen. Es ist davon auszugehen, dass sich die europäischen Marktpreise stärker am Weltmarktniveau orientieren und somit auch hohe Schwankungsbreiten bei Zuckerpreisen möglich sind. Die neue Regelung der Zuckermarktordnung sieht auch keine Mindestpreise für Zuckerrüben vor. Die Rübenpreise werden jedoch weiterhin zwischen den Rübenproduzenten und der rübenverarbeitenden Industrie ausverhandelt. Die Reform der Zuckermarktordnung beinhaltet jedoch keine Veränderung im System der Importzölle für Zuckerimporte von außerhalb der EU sowie in der Behandlung von Importen aus LDC/ACP-Ländern (Least Developed Countries / African, Caribbean and Pacific Group of States) mit EU-Präferenzabkommen.
Freihandelsabkommen: Die derzeit verhandelten Freihandelsabkommen der EU könnten wirtschaftliche Auswirkungen auf AGRANA haben. AGRANA verfolgt die laufenden Verhandlungen und analysiert und bewertet die einzelnen Ergebnisse.
Im September 2015 wurde durch die EU-Richtlinie 2015/1513/EU eine Änderung der EU-Regelung für erneuerbare Energien veröffentlicht. Darin wurde das EU-Einsparungsziel von 40 % der Treibhausgase bis zum Jahr 2030 auf Basis des Energieverbrauches von 1990 für den Beitrag durch Biotreibstoffe neu geregelt.
Im November 2016 hat die EU-Kommission einen neuen Vorschlag unterbreitet, der einen Anteil von erneuerbarer Energien innerhalb der EU von mindestens 27 % vorsieht, jedoch keine spezifische Zielsetzung für den Bereich Transport definiert. Der Vorschlag beinhaltet eine Reduzierung von Biokraftstoffen aus landwirtschaftlichen Rohstoffen ("1. Generation") ab 2021 von einem Anteil von 7 % auf maximal 3,8 % im Jahr 2030. Der Einsatz von aus Stroh, Holz und Abfällen hergestelltem Ethanol ("2. Generation") soll hingegen von 1,5 % im Jahr 2021 bis 2030 stufenweise auf 3 % erhöht werden.
Eine veränderte Position dazu hat am 17. Jänner 2018 das Plenum des EU-Parlaments mit Vorschlägen zur Biokraftstoffpolitik ab 2021 bis 2030 (RED II) verabschiedet. Für getreidebasierte Biotreibstoffe wurde beschlossen, dass die in den Mitgliedsstaaten im Jahr 2017 produzierte Biotreibstoffmenge die maximale Referenzmenge darstellen soll (max. 7 %) und damit der Status quo beibehalten würde. Generell aber soll der Anteil an jeglicher Form von erneuerbaren Energien im Transport auf 12 % steigen.
AGRANA verfolgt die laufenden Entwicklungen und setzt sich auf nationaler und europäischer Ebene für einen wachsenden Anteil erneuerbarer Kraftstoffe ein.
AGRANA verfolgt Änderungen der rechtlichen Rahmenbedingungen, die eines ihrer Geschäftsfelder oder deren Mitarbeiter betreffen und allenfalls zu einer Risikosituation führen könnten, kontinuierlich und trifft gegebenenfalls notwendige Maßnahmen. Die unter besonderer Aufmerksamkeit stehenden Rechtsbereiche sind Kartell-, Lebensmittel- und Umweltrecht, neben Datenschutz, Geldwäschereibestimmungen und Terrorismusfinanzierung. AGRANA hat für den Bereich Compliance, Personalrecht und allgemeine Rechtsbereiche eigene Stabsstellen.
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.
Wie in den Vorjahresberichten dargestellt, beantragte die österreichische Bundeswettbewerbsbehörde im Jahr 2010 ein Bußgeld im Rahmen eines Kartellverfahrens wegen des Verdachtes wettbewerbsbeschränkender Absprachen in Bezug auf Österreich gegen die AGRANA Zucker GmbH, Wien, und die Südzucker AG, Mannheim|Deutschland. Bis dato ist dazu keine Entscheidung des Kartellgerichtes ergangen. AGRANA hält die Beschuldigung sowie das beantragte Bußgeld weiterhin für unbegründet.
AGRANA ist Risiken aus der Veränderung von Wechselkursen, Zinssätzen und Produktpreisen ausgesetzt. Darüber hinaus bestehen Risiken, die für den Konzern notwendigen Finanzierungen durch Finanzinstitutionen und/oder über den Kapitalmarkt zur Verfügung gestellt zu bekommen. Die Finanzierungssteuerung der Unternehmensgruppe erfolgt im Wesentlichen zentral durch die Treasury-Abteilung, die dem Vorstand laufend über die Entwicklung und Struktur der Nettofinanzschulden des Konzerns, finanzielle Risiken und den Umfang und das Ergebnis der getätigten Sicherungsgeschäfte berichtet.
Die AGRANA-Gruppe ist weltweit tätig und hat unterschiedliche Steuergesetzgebungen, Abgabenregularien sowie devisenrechtliche Bestimmungen zu beachten. Veränderungen von Bestimmungen unterschiedlicher Gesetzgeber und deren Auslegung lokaler Behörden können einen Einfluss auf den finanziellen Erfolg einzelner Konzerngesellschaften haben.
Derivative Finanzinstrumente sind im abgelaufenen Geschäftsjahr nicht verwendet worden und wurden auch zum Bilanzstichtag nicht eingesetzt.
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 von IFRS 7 werden die bestehenden Zinsrisiken durch Berechnung des "Cash Flow at Risk" bzw. der "Modified Duration" ermittelt und im Konzernanhang detailliert dargestellt.
Währungsrisiken können aus dem Einkauf von Waren und Verkauf von Produkten in Fremdwährungen sowie aufgrund von Finanzierungen, die nicht in der lokalen Währung erfolgen, 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.
Im Rahmen des Währungsmanagements ermittelt AGRANA monatlich pro Konzerngesellschaft das Netto-Fremdwährungsexposure, welches sich aus den Einkaufs-, Verkaufs- und Finanzmittelpositionen inklusive der im Bestand befindlichen Sicherungsgeschäfte ergibt. Zudem werden bereits kontrahierte, jedoch noch nicht erfüllte Einkaufs- und Verkaufskontrakte in Fremdwährungen berücksichtigt. 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.
Das Währungsrisiko wird durch den "Value at Risk"-Ansatz ermittelt und im Konzernanhang dargestellt.
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 werden durch die bestehenden Warenkreditversicherungen, durch strikte Kreditlimits und laufende Überprüfungen der Kundenbonität minimiert. Das verbleibende Risiko wird durch Vorsorgen in angemessener Höhe abgedeckt.
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.
Der Vorstand der AGRANA verantwortet die Einrichtung und Ausgestaltung eines internen Kontrollsystems (IKS) und Risikomanagementsystems (RMS) im Hinblick auf den Rechnungslegungsprozess sowie die Einhaltung der maßgeblichen gesetzlichen Vorschriften.
Das IKS, konzernweit geltende Bilanzierungs- und Bewertungsrichtlinien 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 ERP3 -System. Sämtliche AGRANA-Gesellschaften übergeben die Werte der Einzelabschlüsse in das zentrale SAP-Konsolidierungsmodul. Es kann somit sichergestellt werden, dass das Berichtswesen auf einer einheitlichen Datenbasis beruht. 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 wesentlichen 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 gesamte AGRANA-Gruppe, in dem unter Annahme von aktuellen Marktpreisen noch nicht fixierter Mengen bei wesentlichen Ergebnisfaktoren im Vergleich zu geplanten Preisen das 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.
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 sowie an den Aufsichtsrat (Prüfungsausschuss) berichtet. Die Umsetzung der von der Revision vorgeschlagenen Maßnahmen wird durch Folgekontrollen überprüft.
Enterprise-Resource-Planning
Im Rahmen der Abschlussprüfung beurteilt der Wirtschaftsprüfer jährlich das interne Kontrollsystem des Rechnungslegungsprozesses und der IT-Systeme. Die Ergebnisse der Prüfungshandlungen werden dem Prüfungsausschuss im Aufsichtsrat berichtet.
Das Grundkapital der AGRANA Beteiligungs-AG zum Stichtag 28. Februar 2018 betrug 113,5 Mio. € (28. Februar 2017: 113,5 Mio. €) und war in 15.622.244 (28. Februar 2017: 15.622.244) 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 78,34 % 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 Vorstandsmitglied der Südzucker AG und Dkfm. Thomas Kölbl seitens Südzucker als Vorstandsmitglied der AGRANA Beteiligungs-AG nominiert und bestellt.
Der Vorstand ist bis einschließlich 4. September 2020 ermächtigt, mit Zustimmung des Aufsichtsrates das Grundkapital um bis zu 4.940.270,20 € durch Ausgabe von bis zu 679.796 Stück neuen auf Inhaber lautenden Stammaktien der Gesellschaft gegen Bar- oder Sacheinlagen auch in mehreren Tranchen zu erhöhen und den Ausgabebetrag, der nicht unter dem anteiligen Betrag des Grundkapitals liegen darf, die Ausgabebedingungen und die weiteren Einzelheiten der Durchführung der Kapitalerhöhung im Einvernehmen mit dem Aufsichtsrat festzusetzen.
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.
AGRANA bekennt sich zu den Regelungen des ÖCGK. Im Geschäftsjahr 2017|18 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 10. November 2017 und 22. Februar 2018 mit Fragen der Corporate Governance befasst und einstimmig der Erklärung über die Einhaltung des Kodex zugestimmt.
Die Umsetzung und die Einhaltung der einzelnen Regeln des Kodex wurde im Geschäftsjahr 2017|18 durch die KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft evaluiert. Die Überprüfung erfolgt im Wesentlichen unter Anwendung des Fragebogens zur Evaluierung der Einhaltung des ÖCGK, herausgegeben vom Österreichischen Arbeitskreis für Corporate Governance (Fassung Jänner 2015). Der Bericht über die externe Evaluierung gemäß Regel 62 des ÖCGK ist unter www.agrana.com/ir/corporate-governance abrufbar.
Die AGRANA Beteiligungs-Aktiengesellschaft hatte in 2017/18 keine Zweigniederlassungen
AGRANA sieht sich aufgrund des diversifizierten Geschäftsmodelles und einer soliden Bilanzstruktur für die Zukunft gut aufgestellt. Aufgrund der aktuellen Herausforderungen im Segment Zucker ist für das Geschäftsjahr 2018/19 jedoch mit einem deutlichen Rückgang beim Ergebnis der Betriebstätigkeit (EBIT) zu rechnen. Beim Konzernumsatz wird von einer Entwicklung auf Vorjahresniveau ausgegangen.
Aus Sicht der Einzelgesellschaft, der AGRANA Beteiligungs-Aktiengesellschaft, wird für das kommende Geschäftsjahr 2018|19 mit einer stabilen Umsatzentwicklung und einem Ergebnis der Geschäftstätigkeit (EGT) auf aktuellem Niveau gerechnet.
Wien, am 23. April 2018
Dipl.-Ing. Johann Marihart Mag. Dipl.-Ing. Dr. Fritz Gattermayer
Mag. Stephan Büttner Dkfm. Thomas Kölbl
for the year ended 28 February 2018
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 Wesentliche Ereignisse nach dem Bilanzstichtag Ergebnisverwendung Organe und Arbeitnehmer
Entwicklung des Anlagevermögens
| ¤000 | 2017 18 | 2016 17 |
|---|---|---|
| 1. Revenue | 32,079 | 31,873 |
| 2. Other operating income | 81 | 258 |
| 3. Staff costs | (18,174) | (25,240) |
| 4. Depreciation, amortisation and impairment of | ||
| property, plant and equipment and intangible assets | (1,071) | (1,107) |
| 5. Other operating expenses | (20,077) | (21,965) |
| 6. Operating (loss) [subtotal of items 1 to 5] | (7,162) | (16,181) |
| 7. Income from investments in subsidiaries | ||
| and other companies | 76,040 | 76,118 |
| Of which from subsidiaries | 76,007 | 76,078 |
| 8. Income from other securities and loans classified | ||
| as non-current financial assets | 2,002 | 2,542 |
| Of which from subsidiaries | 2,002 | 2,542 |
| 9. Other interest and similar income | 2,464 | 2,525 |
| Of which from subsidiaries | 2,435 | 2,525 |
| 10. Interest and similar expense | (1,835) | (2,531) |
| Of which from subsidiaries | (1,327) | (2,216) |
| 11. Net financial items [subtotal of items 7 to 10] | 78,671 | 78,654 |
| 12. Profit before tax [subtotal of items 1 to 11] | 71,509 | 62,473 |
| 13. Income tax benefit | 115 | 1,076 |
| 14. Profit for the period | 71,624 | 63,549 |
| 15. Profit brought forward from prior year | 12,817 | 11,756 |
| 16. Net profit available for distribution | 84,441 | 75,305 |
at 28 February 2018
| ¤000 | 28 Feb 2018 |
28 Feb 2017 |
|---|---|---|
| ASSETS | ||
| A. Non-current assets | ||
| I. Intangible assets |
810 | 349 |
| II. Property, plant and equipment | 1,253 | 1,415 |
| III. Non-current financial assets | 459,783 | 543,283 |
| 461,846 | 545,047 | |
| B. Current assets | ||
| I. Receivables and other assets |
375,027 | 381,483 |
| Of which due in more than one year | 23,362 | 30,935 |
| II. Cash and bank balances | 45 | 60 |
| 375,072 | 381,543 | |
| C. Prepaid expenses | 45 | 51 |
| D. Deferred tax assets | 568 | 564 |
| Total assets | 837,531 | 927,205 |
| EQUITY AND LIABILITIES A. Equity |
||
| I. Share capital |
113,531 | 113,531 |
| II. Share premium and other capital reserves | 550,689 | 550,689 |
| III. Retained earnings | 13,928 | 13,928 |
| IV. Net profit available for distribution | 84,441 | 75,305 |
| Of which brought forward from prior year | 12,817 | 11,756 |
| B. Provisions | 762,589 | 753,453 |
| I. Provisions for retirement, termination and |
||
| long-service benefit obligations | 11,793 | 12,974 |
| II. Provisions for tax and other liabilities | 11,136 | 15,143 |
| C. Payables | 22,929 | 28,117 |
| I. Borrowings |
42,500 | 126,000 |
| Of which due in up to one year | 0 | 83,500 |
| Of which due in more than one year | 42,500 | 42,500 |
| II. Other payables | 9,513 | 19,635 |
| Of which due in up to one year | 8,034 | 13,830 |
| Of which due in more than one year | 1,479 | 5,805 |
| 52,013 | 145,635 | |
| Total equity and liabilities | 837,531 | 927,205 |
for the year ended 28 February 2018
Die Erstellung des Jahresabschlusses erfolgte nach den Bestimmungen des Unternehmensgesetzbuches (§ 189 ff UGB) in der geltenden Fassung.
Die Gesellschaft ist als große Kapitalgesellschaft 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.
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.
Schätzungen beruhen auf einer umsichtigen Beurteilung. Soweit statistisch ermittelbare Erfahrungen aus gleich gelagerten Sachverhalten vorhanden sind, wurde dies bei Schätzungen berücksichtigt.
Die bisherige Form der Darstellung wurde bei der Erstellung des vorliegenden Jahresabschlusses beibehalten.
Der Jahresabschluss der Gesellschaft wird beim Firmenbuch des Handelsgerichtes Wien eingereicht.
Der 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.
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.
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.
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.
Zuschreibungen zu Vermögensgegenständen des Anlagevermögens werden vorgenommen, wenn die Gründe für die außerplanmäßige Abschreibung weggefallen sind. Die Zuschreibung erfolgt auf maximal den Nettobuchwert, der sich unter Berücksichtigung der Normalabschreibungen, die inzwischen vorzunehmen gewesen wäre, ergibt.
Geringwertige Vermögensgegenstände (Einzelanschaffungswert unter je EUR 400,00) werden aktiviert und sofort abgeschrieben.
Gemäß den steuerrechtlichen Vorschriften wird für Zugänge im ersten Halbjahr eine volle Jahresabschreibung, für Zugänge im zweiten Halbjahr eine halbe Jahresabschreibung vorgenommen.
Die Forderungen und sonstigen Vermögensgegenstände sind mit dem Nennwert angesetzt, soweit nicht im Fall erkennbarer Einzelrisken der niedrigere beizulegende Wert angesetzt wird.
Zuschreibungen zu Vermögensgegenständen des Umlaufvermögens werden vorgenommen, wenn die Gründe für die Abschreibung weggefallen sind.
Für Unterschiede zwischen unternehmensrechtlichen und steuerrechtlichen Wertansätzen bei Vermögensgegenständen, Rückstellungen, Verbindlichkeiten und Rechnungsabgrenzungen, die sich in späteren Geschäftsjahren abbauen, wird in Höhe der sich insgesamt ergebenden Steuerbelastung eine Rückstellung für passive latente Steuern gebildet. Führen diese Unterschiede in Zukunft zu einer Steuerentlastung werden aktive latente Steuern in der Bilanz angesetzt. Aktive und passive latente Steuern werden saldiert. Für steuerliche Verlustvorträge wird keine aktive latente Steuer gebildet. Latente Steuern werden auf Basis des aktuellen Körperschaftsteuersatz von 25 % gebildet. Der gemäß § 198 (10) UGB aktivierbare Betrag in der Höhe von TEUR 568 (im Vorjahr 564 TEUR) wurde in die Bilanz aufgenommen.
Die Rückstellungen für Abfertigungen und Jubiläen wurden im Einklang mit der "AFRAC-Stellungnahme 27 Personalrückstellungen (UGB) (Juni 2016)" nach versicherungsmathematischen Grundsätzen bewertet. Diese werden gemäß den International Accounting Standards IAS 19 mit der versicherungsmathematischen Bewertungsmethode der laufenden Einmalprämien ermittelt. Als Rechnungszinssatz wurde der Stichtagszinssatz von 1,7 % (VJ 1,6 %) herangezogen, die künftigen Gehaltssteigerungen wurden mit 3,3 %, und Fluktuationsabschläge je nach Dienstangehörigkeit von 0-1,89 % (im Vorjahr 0- 2,07 %) für Abfertigungen und von 0-12,21% (im Vorjahr 0-12,80%) für Jubiläen angesetzt.
Als Rechnungsgrundlagen wurden die "AVÖ 2008-P Rechnungsgrundlagen für die Pensionsversicherung Pagler & Pagler" in der Ausprägung für Angestellte herangezogen. Als Fluktuation wurden neben Invalidisierungs- und Sterberaten und der Beendigung des Dienstverhältnisses mit dem Erreichen des Pensionsalters jährliche dienstzeitabhängige Raten für vorzeitige Beendigungen des Dienstverhältnisses angesetzt. Das Pensionseintrittsalter für Frauen und Männer wurde mit 65 Jahren gemäß Übergangsregel der Pensionsreform ermittelt.
Die Rückstellungen für Pensionen wurden im Einklang mit der "AFRAC-Stellungnahme 27 Personalrückstellungen (UGB) (Juni 2016)" nach versicherungsmathematischen Grundsätzen bewertet. Diese werden gemäß den International Accounting Standards IAS 19 mit der versicherungsmathematischen Bewertungsmethode der laufenden Einmalprämien ermittelt. Als Rechnungszinssatz wurde der Stichtagszinssatz 1,7 % (VJ 1,6 %) herangezogen, die künftigen Gehaltssteigerungen für Aktive wurden mit 1,78 % angesetzt. Als Rechnungsgrundlagen wurden die "AVÖ 2008-P Rechnungsgrundlagen für die Pensionsversicherung Pagler & Pagler" in der Ausprägung für Angestellte herangezogen. Über die Ausscheideursachen Tod und Invalidisierung und der Beendigung des Dienstverhältnisses mit dem Erreichen des Pensionsalters wurden keine weiteren Ausscheideursachen wie Fluktuation berücksichtigt.
Die Pensionsverpflichtungen sind seit 2002 leistungsorientiert an eine Pensionskasse ausgeglagert. Es wurde der Gesamtbetrag der rückgestellten Pensionsansprüche an die Kasse übertragen.
In den sonstigen Rückstellungen werden unter Beachtung des Vorsichtsprinzips alle zum Zeitpunkt der Bilanzerstellung erkennbaren Risiken und der Höhe sowie dem Grunde nach ungewisse Verbindlichkeiten mit den Beträgen berücksichtigt, die nach vernünftiger kaufmännischer Beurteilung erforderlich sind. Langfristige Rückstellungen bestehen nicht.
Die Rückstellungen für nicht verbrauchte Urlaube wurden in voller erforderlicher Höhe passiviert.
Die sonstigen Rückstellungen beinhalten auch Verpflichtungen betreffend kollektivvertragliche Verpflichtungen zur Zahlung von Jubiläumsgeldern. Diese Rückstellungen werden nach den für Abfertigungsrückstellungen angewandten Berechnungsmethoden (IAS19) ermittelt.
Die Verbindlichkeiten sind mit dem Erfüllungsbetrag angesetzt. Fremdwährungsverbindlichkeiten sind mit dem höheren Devisenbriefkurs am Bilanzstichtag bewertet.
Die Entwicklung der einzelnen Posten des Anlagevermögens ist im Anlagespiegel (Anlage 1) dargestellt.
Der Anteilsbesitz gemäß § 238 Abs 1 Z 4 UGB (mindestens 20 % Kapitalanteil) stellt sich wie folgt dar:
| Höhe des |
Eigenkapital gem. | Ge schäfts- |
Jahresüber | |
|---|---|---|---|---|
| Beteiligungsunternehmen | Anteils | § 229 UGB | jahr | schuss/fehlbetrag |
| % | EUR | EUR | ||
| Anteile an verbundenen Unternehmen: | ||||
| AGRANA Marketing- und | ||||
| Vertriebsservice Ges.m.b.H, Wien | 100 | 9.641.147,58 | 2017/18 | 844.088,07 |
| AGRANA Int.Verw.u.Asset Managem. GmbH, Wien*) |
98,91 | 257.142.856,89 | 2017/18 | 16.849.471,92 |
| AGRANA Zucker GmbH., Wien *) | 98,91 | 316.167.328,00 | 2017/18 | 36.604.045,33 |
| AGRANA Stärke GmbH., Wien *) | 98,91 | 329.449.140,71 | 2017/18 | 60.011.391,28 |
| AGRANA Group-Service GmbH | 100 | 79.793,27 | 2017/18 | 4.100.586,27 |
| INSTANTINA Nahrungsmittel Entwick lungs- und Produktions- GesmbH, Wien |
66,67 | 7.889.505,51 | 2017/18 | 317.262,88 |
| AGRANA Research & Innovation Center GmbH, Tulln |
100 | 3.874.106,34 | 2017/18 | 278.854,27 |
*) Die restlichen Anteile auf 100 % werden von Tochtergesellschaften gehalten.
Die Ausleihungen an verbundene Unternehmen betreffen die AGRANA Group-Services GmbH, Wien. Davon haben € 42.500.000,00 eine Restlaufzeit von 1 bis 5 Jahren.
| in EUR (Vorjahr in TEUR) | Restlaufzeit | Restlaufzeit von mehr |
Bilanzwert |
|---|---|---|---|
| bis 1 Jahr | als 1 Jahr | ||
| Forderungen gegenüber verbundenen | |||
| Unternehmen | 348.632.221,70 | 23.340.227,26 | 371.972.448,96 |
| (28.02.2017) | (349.209) | (26.668) | (375.877) |
| Sonstige Forderungen und | |||
| Vermögensgegenstände | 3.033.725,82 | 21.835,77 | 3.055.561,59 |
| (28.02.2017) | (1.338) | (4.268) | (5.606) |
| Summe | 351.665.947,52 | 23.362.063,03 | 375.028.010,55 |
| (28.02.2017) | (350.548) | (30.935) | (381.483) |
Die Forderungen gegen verbundene Unternehmen betreffen in Höhe von EUR 369.226.758,19 (im Vorjahr 372.954 TEUR) sonstige Forderungen und in Höhe von EUR 2.745.690,77 (im Vorjahr 2.922 TEUR) Forderungen aus Lieferungen und Leistungen.
Die sonstigen Forderungen und Vermögensgegenstände enthalten im Wesentlichen Forderungen aus Kapitalertragsteuer gegenüber dem Finanzamt Wien 1/23 in Höhe von EUR 2.969.235,24 (im Vorjahr 5.567 TEUR) und andere kurzfristige Forderungen.
In den sonstigen Forderungen sind keine wesentlichen Erträge, die erst nach dem Bilanzstichtag zahlungswirksam werden, enthalten.
Das Grundkapital in Höhe von EUR 113.531.274,76 setzt sich aus 15.622.244 Stück nennbetragslosen Stückaktien – Stammaktien zusammen.
| Kapitalrücklagen | Stand 01.03.2017 | Veränderung | Stand 28.02.2018 |
|---|---|---|---|
| EUR | EUR | EUR | |
| Gebundene | 505.122.085,57 | 0,00 | 505.122.085,57 |
| Nicht gebundene | 45.566.884,45 | 0,00 | 45.566.884,45 |
| Summe | 550.688.970,02 | 0,00 | 550.688.970,02 |
| Stand 01.03.2017 | Veränderung | Stand 28.02.2018 | |
|---|---|---|---|
| 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 |
Die Berechnung der Rückstellungen für Abfertigungen, Pensionen und der sonstigen Rückstellungen wird unter den Bilanzierungs- und Bewertungsgrundsätzen erläutert.
Die Abfertigungs-, Pensions- und sonstigen Rückstellungen gliedern sich wie folgt:
| Stand | Verbrauch | Auflösung | Zuweisung | Stand am | |
|---|---|---|---|---|---|
| 28.02.2017 | 28.02.2018 | ||||
| in EUR | in EUR | in EUR | in EUR | in EUR | |
| Abfertigung | 4.121.967,40 | 0,00 | 0,00 | 394.389,33 | 4.516.356,73 |
| Pensionsansprüche | 8.496.016,33 | 0,00 | 1.621.807,39 | 0,00 | 6.874.208,94 |
| Jubiläumsgelder | 355.552,90 | 1.587,84 | 0,00 | 48.408,65 | 402.373,71 |
| Altersteilzeit | 27.192,60 | 27.192,60 | 0,00 | 0,00 | 0,00 |
| Nicht konsumierte Urlaube | 1.348.487,81 | 0,00 | 0,00 | 97.653,19 | 1.446.141,00 |
| Sonderzahlungen | 323.667,83 | 0,00 | 0,00 | 25.130,28 | 348.798,11 |
| Prüfungsaufwand | 195.000,00 | 195.000,00 | 0,00 | 174.000,00 | 174.000,00 |
| Veröffentlichungsaufwand | 133.000,00 | 126.672,82 | 6.327,18 | 137.500,00 | 137.500,00 |
| Kosten der | |||||
| Hauptversammlung | 54.000,00 | 46.667,39 | 7.332,61 | 50.000,00 | 50.000,00 |
| Kosten Bilanzpresse konferenz |
4.200,00 | 3.841,10 | 358,90 | 3.800,00 | 3.800,00 |
| Konzernkommunikation | 4.000,00 | 2.154,11 | 1.845,89 | 0,00 | 0,00 |
| Aufsichtsratsvergütungen | 250.000,00 | 250.000,00 | 0,00 | 250.000,00 | 250.000,00 |
| Pensionskasse | 32.980,12 | 32.980,12 | 0,00 | 33.046,00 | 33.046,00 |
| Sonstige ausstehende Eingangsrechnungen |
320.440,00 | 296.951,40 | 23.488,60 | 542.300,00 | 542.300,00 |
| Kosten iZm Kapital erhöhung |
1.002.230,71 | 1.002.230,71 | 0,00 | 0,00 | 0,00 |
| Summe | 16.668.735,70 1.985.278,09 1.661.160,57 1.756.227,45 14.778.524,49 |
Die Rückstellung für ausstehende Eingangsrechnungen betrifft im Wesentlichen offene Leistungen für IT-Projekte und ausstehende Abrechnungen.
| 28.02.2018 | 28.02.2017 | |
|---|---|---|
| in EUR | in TEUR | |
| Verbindlichkeiten gegenüber Kreditinstituten | 42.500.098,39 | 126.000 |
| davon mit RLZ von bis 1 Jahr | (98,39) | (83.500) |
| davon mit RLZ von 1 bis 5 Jahren | (42.500.000,00) | (35.500) |
| davon mit RLZ von mehr als 5 Jahren | (0,00) | (7.000) |
| Verbindlichkeiten aus Lieferungen und Leistungen | 745.704,91 | 902 |
| davon mit RLZ von bis 1 Jahr | (745.704,91) | (902) |
| 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 | 3.562.008,21 | 9.116 |
| davon mit RLZ von bis 1 Jahr | (2.083.182,63) | (3.311) |
| davon mit RLZ von mehr als 1 Jahr | (1.478.825,58) | (5.805) |
| Sonstige Verbindlichkeiten | 5.205.543,47 | 9.617 |
| davon mit RLZ von bis 1 Jahr | (5.205.543,47) | (9.617) |
| Summe | 52.013.354,98 | 145.635 |
| davon mit RLZ von bis 1 Jahr | (8.034.529,40) | (97.330) |
| davon mit RLZ von 1 bis 5 Jahren | (43.978.825,58) | (41.305) |
| davon mit RLZ von mehr als 5 Jahren | (0,00) | (7.000) |
RLZ = Restlaufzeit
Die Verbindlichkeiten gegenüber Kreditinstituten enthalten ein Schuldscheindarlehen über EUR 42.500.000,00, welches zur Gänze konzernintern mit gleicher Kondition und Laufzeit an die für Finanzierungen zuständige AGRANA Group-Services GmbH weitergereicht wurde.
In den sonstigen Verbindlichkeiten sind die Abgrenzungen für erfolgsabhängige Personalprämien in Höhe von EUR 3.454.703,92 (im Vorjahr 3.026 TEUR) und Verbindlichkeiten aus Steuer und im Rahmen der sozialen Sicherheit in Höhe von EUR 859.142,18 (im Vorjahr 5.177 TEUR) enthalten.
In den Verbindlichkeiten gegenüber verbundenen Unternehmen sind sonstige Verbindlichkeiten in Höhe von EUR 3.562.008,21 (im Vorjahr 9.116 TEUR) enthalten, welche fast ausschließlich die Verrechnungen aus der Gruppenbesteuerung betreffen.
Die Miete im Raiffeisenhaus für das Geschäftsjahr 2017/18 beträgt EUR 1.551.389,64 (im Vorjahr 1.537 TEUR) Für fünf Jahre beträgt die Miete aus heutiger Sicht insgesamt EUR 7.756.948,20
| 28.02.2018 | 28.02.2017 | |
|---|---|---|
| in EUR | in TEUR | |
| Haftungen aus Wechselobligo | 7.800.000,00 | 7.800 |
| Haftungen aus Zahlungsgarantien | 167.236.879,35 | 76.002 |
| Zwischensumme | 175.036.879,35 | 83.802 |
| Patronatserklärungen | ||
| AGRANA Group Service GmbH, Wien | 0,00 | 4.021 |
| 175.036.879,35 | 87.823 | |
| davon gegenüber verbundenen Unternehmen | 127.591.255,72 | 47.471 |
Die Gewinn- und Verlustrechnung umfasst im Berichtsjahr den Zeitraum vom 01. März 2017 bis 28. Februar 2018, im Vorjahr jenen vom 01. März 2016 bis 28. Februar 2017.
Die Umsatzerlöse in Höhe von EUR 32.079.287,22 (im Vorjahr 31.873 TEUR) beinhalten im Wesentlichen Erträge aus der Konzernverrechnung und Erträge für die Nutzung der Lizenzen für Markenrechte (Royalities).
(10) Die Erträge aus dem Abgang von Anlagevermögen mit Ausnahme der Finanzanlagen belaufen sich auf EUR 39.745,91 (im Vorjahr 38 TEUR).
(11) Die Erträge aus der Auflösung von Rückstellungen von EUR 39.353,18 (im Vorjahr 219 TEUR) beinhalten im Wesentlichen die Auflösung von Rückstellungen für ausstehende Eingangsrechnungen betreffend IT-Leistungen, Veröffentlichungsaufwand und Konzernkommunikation.
(12) Die übrigen sonstigen betrieblichen Erträge von EUR 1.645,26 (im Vorjahr 1 TEUR) enthalten Erträge aus realisierten Gewinnen aus Kursdifferenzen und Erträge aus Versicherungsansprüchen.
| 2017/18 | 2016/17 | |
|---|---|---|
| in EUR | in TEUR | |
| Gehälter | 15.546.838,35 | 14.074 |
| Aufwendungen für Abfertigungen | 437.112,93 | 749 |
| Leistungen an betriebliche Mitarbeitervorsorge kassen (MVK) |
163.280,63 | 152 |
| Aufwendungen für Altersversorgung | -1.140.129,43 | 7.153 |
| Sozialabgaben und Personalnebenkosten | 2.900.243,76 | 2.874 |
| Sonstige Sozialaufwendungen | 266.957,64 | 238 |
| Summe | 18.174.303,88 | 25.240 |
| Abfertigungen und Leistun gen an betriebliche Mitarbei tervorsorgekassen |
Pensionen (Rückstellungen) | ||||
|---|---|---|---|---|---|
| 2017/18 2016/17 |
2017/18 | 2016/17 | |||
| EUR | TEUR | EUR | TEUR | ||
| Vorstand u. Personen lt. § 80 AktG | 167.848,62 | 255 | -1.161.365,03 | 7.133 | |
| andere Arbeitnehmer | 432.544,94 | 646 | 21.235,60 | 20 | |
| Summe | 600.393,56 | 901 | -1.140.129,43 | 7.153 |
Die durchschnittliche Zahl der Arbeitnehmer (ohne Vorstandsmitglieder) während des Geschäftsjahres betrug 157 Angestellte (im Vorjahr 149 Angestellte).
Die Gesamtbezüge der Vorstandsmitglieder betrugen im Berichtsjahr EUR 3.487.856,69 (im Vorjahr 3.234 TEUR). An die Pensionskasse wurden an laufenden Beiträgen EUR 460.442,36 (im Vorjahr 354 TEUR) für die Vorstandsmitglieder bezahlt. Weiters wurde bei der Vorsorge für künftige Pensionsansprüche ein Betrag in Höhe von EUR 1.621.807,39 (im Vorjahr 6.779 TEUR Zuführung) aufgelöst.
Die Mitglieder des Aufsichtsrates erhielten für ihre Tätigkeit im Geschäftsjahr 2017/18 eine Vergütung von EUR 250.000,00 (im Vorjahr 250 TEUR).
Im Posten "Sonstige Verbindlichkeiten" sind Aufwendungen in Höhe von EUR 4.014.267,96 (Vorjahr: TEUR 3.826) enthalten, die erst nach dem Bilanzstichtag zahlungswirksam werden.
Die übrigen sonstigen betriebliche Aufwendungen betragen EUR 20.077.959,97 (im Vorjahr 21.966 TEUR) und umfassen im Wesentlichen EDV-Aufwand inkl. EDV Beratung von EUR 7.639.419,01 (im Vorjahr 7.918 TEUR), Kosten der Kapitalerhöhung EUR 0,00 (im Vorjahr 3.321 TEUR), Rechts-, Prüfungs- und Beratungsaufwendungen von EUR 1.748.575,56 (im Vorjahr 1.513 TEUR), Leasing, Mieten und Pachten von EUR 2.143.960,79 (im Vorjahr 2.178 TEUR), Werbeaufwendungen von EUR 1.805.150,67 (im Vorjahr 1.587 TEUR), Bankgebühren EUR 77.598,48 (im Vorjahr 79 TEUR) sowie andere Aufwendungen in Höhe von EUR 6.663.255,46 (im Vorjahr 5.371 TEUR).
| 2017/18 | 2016/17 | |
|---|---|---|
| in EUR | in TEUR | |
| Erträge von verbundenen Unternehmen | 76.006.541,84 | 76.078 |
| Erträge von sonstigen Beteiligungen | 33.220,00 | 40 |
| Summe | 76.039.761,84 | 76.118 |
| 2017/18 | 2016/17 | |
|---|---|---|
| in EUR | in TEUR | |
| Körperschaftsteuer | -10.954.500,00 | -9.557 |
| Körperschaftsteuer Vorperioden | -2.915.429,70 | 1.153 |
| Steuerumlagen | 14.010.017,57 | 8.931 |
| Lat. Ertragsst. a. Bewertungsdiff. | 3.317,15 | 564 |
| nicht abzugsfähige Quellensteuer | -28.512,85 | -15 |
| Summe | 114.892,17 | 1.076 |
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.
AGRANA AGRO SRL, Roman, Rumänien AGRANA BiH Holding GmbH, Wien, Österreich AGRANA BUZAU SRL, Buzau, Rumänien 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 INDIA PRIVATE LIMITED, Neu Delhi, Indien AGRANA Fruit Istanbul Gida Sanayi ve Ticaret A.S., Istanbul, Türkei AGRANA Fruit (Jiangsu) Company Limited, Jiangsu, China 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 Management Australia Pty Ltd., Sydney, Australien 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, Johannesburg, Südafrika AGRANA Fruit Ukraine TOV, Winniza, Ukraine AGRANA Fruit US, Inc, Brecksville, USA
AGRANA Group-Services GmbH, Wien, Österreich AGRANA Internationale Verwaltungs- und Asset-Management GmbH, Wien, Österreich AGRANA Juice Sales & Marketing GmbH, Bingen, Deutschland AGRANA JUICE (XIANYANG) CO.,LTD, Xianyang City, China AGRANA Magyarorzág Értékesitési Kft., Budapest, Ungarn 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 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, Kröllendorf/Allhartsberg, Österreich AUSTRIA JUICE Germany GmbH, Bingen, Deutschland AUSTRIA JUICE Hungary Kft., Vásarosnamény, Ungarn AUSTRIA JUICE Poland Sp.z.o.o., Chelm, Polen AUSTRIA JUICE Romania SRL, Vaslui, Rumänien AUSTRIA JUICE Ukraine LLC, Winniza, Ukraine Biogáz Fejlesztő Kft., Kaposvár, Ungarn Dirafrost FFI N.V., Herk-de-Stad, Belgien Dirafrost Maroc SARL, Laouamra, Marokko 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 Main Process S.A., Buenos Aires, Argentinien Moravskoslezské Cukrovary A.S., Hrušovany, Tschechien o.o.o. AGRANA Fruit Moscow Region, Serpuchov, Russland 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
Sudinver S.A., Buenos Aires, Argentinien Yube d.o.o., Požega, Serbien
SÜDZUCKER Aktiengesellschaft Mannheim/Ochsenfurt, Mannheim, Deutschland mit ihren Tochtergesellschaften
"AGRAGOLD" d.o.o., Brčko, Bosnien-Herzegowina
AGRAGOLD d.o.o., Zagreb, Kroatien
AGRAGOLD dooel, Skopje, Mazedonien
AGRAGOLD trgovina d.o.o. , Ljubljana, Slowenien
AGRANA STUDEN Albania, Tirana, Albanien
AGRANA-STUDEN Beteiligungs GmbH, Wien, Österreich
AGRANA-STUDEN Kosovo L.L.C., Prishtina, Kosovo
AGRANA-STUDEN Sugar Trading GmbH, Wien, Österreich
Company for trade and services AGRANA-STUDEN Serbia d.o.o. Beograd, Belgrad, Serbien
GreenPower E85 Kft, Szabadegyháza, Ungarn
HUNGRANA Keményitö- és Isocukorgyártó és Forgalmazó Kft., Szabadegyháza, Ungarn
HungranaTrans Kft., Szabadegyháza, Ungarn
STUDEN-AGRANA Rafinerija Secera d.o.o., Brčko, Bosnien-Herzegowina
| 2017/2018 Jahres abschluss |
Andere Bestätigungs leistungen |
sonstige Leistungen |
Gesamt | 2016/2017 Jahres abschluss |
Andere Bestätigungs leistungen |
sonstige Leistungen |
Gesamt | |
|---|---|---|---|---|---|---|---|---|
| EUR | EUR | EUR | EUR | TEUR | TEUR | TEUR | TEUR | |
| KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft |
31.070,00 | 192.930,00 | 73.87,44 | 297.847,44 | 31 | 434 | 123 | 588 |
| Summe | 31.070,00 | 192.930,00 | 73.847,44 297.847,44 | 31 | 434 | 123 | 588 |
Nach dem Bilanzstichtag sind keine wesentlichen Ereignisse eingetreten.
Es wird vorgeschlagen, aus dem Bilanzgewinn in Höhe von EUR 84.440.586,06 eine Dividende von EUR 4,50 je Aktie, das sind in Summe EUR 70.300.098,00 auszuschütten und den Restbetrag der Gewinnrücklage zuzuführen.
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 Dipl.-Ing. Helmut FRIEDL, Egling a.d.Paar (ab 7.7.2017) Dr. Jochen FENNER, Gelchsheim (bis 7.7.2017)
Vom Betriebsrat delegiert: Dipl.Ing. Stephan SAVIC, Wien Andreas KLAMLER, Gleisdorf Thomas BUDER, Katzelsdorf Gerhard GLATZ, Hohenberg
Dipl.-Ing. Johann MARIHART, Limberg Vorsitzender Mag. Dipl.-Ing. Dr. Fritz GATTERMAYER, Klosterneuburg Mag. Stephan BÜTTNER, Wien Dkfm. Thomas KÖLBL, Speyer
Wien, am 23. April 2018
Dipl.-Ing. Johann Marihart Mag. Dipl.-Ing. Dr. Fritz Gattermayer
Mag. Stephan Büttner Dkfm. Thomas Kölbl
| A N L A G E V E R M Ö G E N | Anschaffungskosten | |||
|---|---|---|---|---|
| Stand 01.03.17 |
Zugang | Abgang | Stand 28.02.18 |
|
| I. Immaterielle Vermögensgegenstände | ||||
| 1. Markenrechte | 611.300,93 | 0,00 | 0,00 | 611.300,93 |
| 2. EDV-Software | 8.746.853,81 | 840.753,91 | 0,00 | 9.587.607,72 |
| 3. Geringwertige Vermögensgegenstände | 0,00 | 26.953,99 | 26.953,99 | 0,00 |
| 9.358.154,74 | 867.707,90 | 26.953,99 | 10.198.908,65 | |
| II. Sachanlagen | ||||
| 1. Bauten, einschließlich der Bauten | ||||
| auf fremdem Grund | 0,00 | 0,00 | 0,00 | 0,00 |
| 2. Betriebs- und Geschäftsausstattung | 4.701.675,82 | 495.538,92 | 374.547,05 | 4.822.667,69 |
| 3. Geringwertige Vermögensgegenstände | 0,00 | 19.921,13 | 19.921,13 | 0,00 |
| 4.701.675,82 | 515.460,05 | 394.468,18 | 4.822.667,69 | |
| 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 | 83.500.000,00 | 42.500.000,00 |
| 3. Beteiligungen | 258.620,00 | 0,00 | 0,00 | 258.620,00 |
| 550.404.110,31 | 0,00 | 83.500.000,00 | 466.904.110,31 | |
| Gesamtsumme | 564.463.940,87 | 1.383.167,95 | 83.921.422,17 | 481.925.686,65 |
| Abschreibungen | Buchwerte |
|---|---|
| Stand Jahres- Zuschreibung Abgang Stand Stand |
Stand |
| 01.03.17 abschreibung 28.02.18 28.02.18 |
28.02.17 |
| 587.862,93 13.966,00 0,00 601.828,93 9.472,00 |
23.438,00 |
| 8.421.214,81 366.246,91 0,00 8.787.461,72 800.146,00 |
325.639,00 |
| 0,00 26.953,99 26.953,99 0,00 |
0,00 0,00 |
| 9.009.077,74 407.166,90 26.953,99 9.389.290,65 809.618,00 |
349.077,00 |
| 0,00 0,00 0,00 0,00 |
0,00 0,00 |
| 3.286.785,25 643.244,31 360.855,05 3.569.174,51 1.253.493,18 |
1.414.890,57 |
| 0,00 20.204,51 20.204,51 0,00 |
0,00 0,00 |
| 3.286.785,25 663.448,82 381.059,56 3.569.174,51 1.253.493,18 |
1.414.890,57 |
| 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 42.500.000,00 |
126.000.000,00 |
| 0,00 0,00 0,00 0,00 258.620,00 |
258.620,00 |
| 7.120.724,48 0,00 0,00 0,00 7.120.724,48 459.783.385,83 |
543.283.385,83 |
| 19.416.587,47 1.070.615,72 0,00 408.013,55 20.079.189,64 461.846.497,01 |
545.047.353,40 |
In accordance with section 124 (1) 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 28 February 2018 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 2017|18 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, 23 April 2018
Johann Marihart Stephan Büttner Chief Executive Officer Member of the Management Board Present responsibilities: Business Strategy, Present responsibilities: Finance, Controlling, Communication (including Investor Relations), Treasury, Information Technology Production, Quality Management, Human Resources, and Organisation, Mergers & Acquisitions, Research and Development Compliance, Legal
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
[Translation]
We have audited the financial statements of AGRANA Beteiligungs-Aktiengesellschaft, Vienna, Austria, which comprise the Balance Sheet as of 28 February 2018, the Income Statement for the year then ended, and the Notes.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as at 28 February 2018 and its financial performance for the year then ended, in accordance with Austrian Generally Accepted Accounting Principles.
We conducted our audit in accordance with Regulation (EU) 537/2014 ("EU Regulation") and Austrian Standards on Auditing. These standards require the audit to be conducted in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the "Auditor's Responsibilities" section of our report. We are independent of the Company, in accordance with Austrian Generally Accepted Accounting Principles and professional regulations, and we have fulfilled our other responsibilities under those relevant ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements. These matters were addressed in the context of our audit of the financial statements as a whole, however, we do not provide a separate opinion thereon.
We have determined that there are no Key Audit Matters to be reported in our opinion.
Management is responsible for the preparation and fair presentation of the financial statements in accordance with Austrian Generally Accepted Accounting Principles and other legal or regulatory requirements 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.
Management is also responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The audit committee is responsible for overseeing the Company's financial reporting process.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement – whether due to fraud or error – and to issue an auditor's report that includes our audit opinion. Reasonable assurance represents a high level of assurance, but provides no guarantee that an audit conducted in accordance with the EU Regulation and Austrian Standards on Auditing (and therefore ISAs), will always detect a material misstatement, if any. Misstatements may result from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the EU Regulation and Austrian Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit.
█ We identify and assess the risks of material misstatements in the financial statements, whether due to fraud or error, we design and perform audit procedures responsive to those risks and obtain sufficient and appropriate audit evidence to serve as a basis for our audit opinion. The risk of not detecting material misstatements resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misprepresentations or the override of internal control.
█ We obtain an understanding of internal control relevant to the audit 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.
█ We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
█ We conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the respective note in the financial statements. If such disclosures are not appropriate, we will modify our audit opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
█ We evaluate the overall presentation, structure and content of the financial statements, including the notes, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
█ We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of our audit as well as significant findings, including any significant deficiencies in internal control that we identify during our audit.
█ We communicate to the audit committee that we have complied with the relevant professional requirements in respect of our independence, that we will report any relationships and other events that could reasonably affect our independence and, where appropriate, the related safeguards.
█ From the matters communicated with the audit committee, we determine those matters that were of most significance in the audit i. e. key audit matters. We describe these key audit matters in our auditor's report unless laws or other legal regulations preclude public disclosure about the matter or when in very rare cases, we determine that a matter should not be included in our audit report because the negative consequences of doing so would reasonably be expected to outweigh the public benefits of such communication.
In accordance with the Austrian Generally Accepted Accounting Principles, the management report is to be audited as to whether it is consistent with the financial statements and prepared in accordance with legal requirements.
Management is responsible for the preparation of the management report in accordance with the Austrian Generally Accepted Accounting Principles.
We have conducted our audit in accordance with generally accepted standards on the audit of management reports as applied in Austria.
In our opinion, the management report is consistent with the financial statements and has been prepared in accordance with legal requirements. The disclosures pursuant to Section 243a UGB are appropriate.
Based on our knowledge gained in the course of the audit of the financial statements and our understanding of the Company and its environment, we did not note any material misstatements in the management report.
At the Annual General Meeting dated 7 July 2017, we were elected as auditors. We were appointed by the supervisory board on 4 December 2017. We have been the Company's auditors from the year ended 30 September 1995, without interruption.
We declare that our opinion expressed in the "Report on the Financial Statements" section of our report is consistent with our additional report to the audit committee, in accordance with Article 11 EU Regulation.
We declare that we have not provided any prohibited non-audit services (Article 5 Paragraph 1 EU Regulation) and that we have ensured our independence throughout the course of the audit, from the audited Company.
The engagement partner is Mr. Wilhelm Kovsca.
Vienna, 23 April 2018
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
signed by:
Wilhelm Kovsca Wirtschaftsprüfer (Austrian Chartered Accountant)
AGRANA Beteiligungs-AG
under Austrian Commercial Code (UGB)
| 2017 18 | |
|---|---|
| € | |
| The financial year to 28 February 2018 | |
| closed with the following net profit available for distribution | 84,440,586 |
| The Management Board proposes to the | |
| Annual General Meeting to allocate this profit as follows: | |
| Distribution of a dividend of € 4.50 per ordinary | |
| no-par value share on 15,622,244 participating ordinary shares, | |
| that is, a total of | 70,300,098 |
| Profit to be carried forward | 14,140,488 |
| 84,440,586 |
AGRANA Beteiligungs-AG Friedrich-Wilhelm-Raiffeisen-Platz 1, 1020 Vienna, Austria
Hannes Haider Phone: +43-1-211 37-12905, Fax: -12926 E-mail: [email protected]
Ulrike Middelhoff Phone: +43-1-211 37-12971, Fax: -12926 E-mail: [email protected]
Layout and design: marchesani_kreativstudio GmbH Creative concept and design: The Gentlemen Creatives GmbH English translation: Martin Focken Translating & Editing
This annual 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 report, and does not accept any liability in the event that assumptions and estimates prove to be incorrect.
The quantitative statements and direction arrows in the "Outlook" section of this report are based on the following definitions:
| Modifier | Visualisation | Numerical rate of change |
|---|---|---|
| Steady | p | 0% up to +1%, or 0% up to –1% |
| Slight(ly) | o or a | More than +1% and up to +5%, or more than –1% and up to –5% |
| Moderate(ly) | i or s | More than +5% and up to +10%, or more than –5% and up to –10% |
| Significant(ly) | ii or ss | More than +10% or more than –10% |
For financial performance indicators not defined in a footnote, please see the definitions in the AGRANA annual report 2017|18 on page 184.
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 and similar errors.
This English translation of the AGRANA annual report is solely for readers' convenience and is not definitive. In the event of discrepancy or dispute, only the German version shall govern.
AGRANA 2017|18 Online reports.agrana.com/en
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