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AGRANA Beteiligungs-AG

Environmental & Social Information May 27, 2021

733_10-k_2021-05-27_80a699aa-78ca-46eb-ab0b-60fc5ff31282.pdf

Environmental & Social Information

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ANNUAL FINANCIAL REPORT

Contents

Consolidated financial statements and group management report AGRANA Group under IFRS 35

Group management report 2020|21 35

  • Organisational structure 36
  • Non-financial information statement 38
  • Financial results 51
  • Fruit segment 59
  • Starch segment 65
  • Sugar segment 70
  • Research and development 77
  • AGRANA's people 81
  • Risk management 88
  • Capital, shares, voting rights and rights of control 96
  • Outlook 97

Consolidated financial statements 2020|21 99

  • Consolidated income statement 100
  • Consolidated statement of comprehensive income 101
  • Consolidated cash flow statement 102
  • Consolidated balance sheet 103
  • Consolidated statement of changes in equity 104
  • Notes to the consolidated financial statements 108
  • List of members of AGRANA's boards 178
  • Statement by the members of the Management Board 179
  • Independent auditor's report 180
  • Parent company: financial statements and management report AGRANA Beteiligungs-AG under Austrian Commercial Code (UGB) 185

Parent company financial statements 2020|21 186

  • Parent company income statement 187
  • Parent company balance sheet 188
  • Notes to the parent company financial statements1 189

Parent company management report 2020|211 206

  • Statement by the members of the 231
  • Management Board Independent auditor's report 232
  • Proposal for the appropriation of profit 236

ANNUAL FINANCIAL REPORT 2020|21

OF AGRANA BETEILIGUNGS-AG FOR THE YEAR ENDED 28 FEBRUARY 2021

GROUP MANAGEMENT REPORT 2020|21

Organisational structure 36

  • Business segments and procurement models 36
  • Corporate governance 37

Non-financial information statements 38

  • The sustainable AGRANA value chain 38
  • AGRANA's understanding of sustainability 40
  • Material non-financial matters/ 41
  • sustainability topics Integration of sustainability 42
  • responsibilities in AGRANA's organisational structure, and boundaries of this report
  • Management approaches for material non-financial matters 43

Financial results 51

  • Changes in the scope of consolidation 51
  • Revenue and earnings 51
  • Investment 53
  • Cash flow 54
  • Financial position 54
  • Segment financial results 56
  • Events after the balance sheet date 58

Fruit segment 59

  • Revenue and earnings 59
  • Market environment 60
  • Raw materials and production 61
  • Investment 64

Starch segment 65

  • Revenue and earnings 65
  • Market environment 66
  • Raw materials and production 66
  • Investment 69

Sugar segment 70

  • Revenue and earnings 70
  • Market environment 71
  • Raw materials and production 72
  • Investment 76

Research and development 77

  • Fruit segment 77
  • Starch segment 78
  • Sugar segment 79

AGRANA's people 81

  • Human resources management 81
  • Staff development and training 87
  • Workplace health and safety 84
  • Balancing work and family 87

Risk management 88

  • Risk policy 88
  • Significant risks and uncertainties 89
  • Operational risks 89
  • Regulatory risks 90
  • Legal risks 91
  • Financial risks 91
  • Coronavirus (Covid-19) 92
  • Non-financial risks 93
  • Aggregate risk 94
  • System of internal control and of risk management 95

Capital, shares, voting rights and rights of control 96

  • Outlook 97
  • Sustainability outlook for 2021|22 98

AGRANA is a globally operating processor of agricultural raw materials, with its Fruit, Starch and Sugar segments manufacturing high-quality foods and many intermediate products for the downstream food industry as well as for non-food applications. With over 8,800 employees (in FTE1) at 56 production sites on six continents, the Group generated revenue of approximately € 2.5 billion in the 2020|21 financial year. AGRANA was established in 1988 and has been quoted on the Vienna Stock Exchange since 1991.

Business segments and procurement models

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 also 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. AGRANA seeks to achieve the most sustainable and complete utilisation of raw materials possible. While fruit preparations production generates very little residue, the press cake from apple juice production, known as apple pomace, is utilised by the pectin industry and as a feedstuff.

In the Starch segment, AGRANA processes and refines raw materials grown by contract farmers or purchased in the open market – mainly corn (maize), wheat and potatoes – into premium starch products. These products are sold into the food and beverage industry as well as the paper, textile, cosmetics and building materials sectors and other non-food industries. The starch operations additionally 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.

In the Sugar segment, AGRANA processes sugar beet from contract growers and also refines raw sugar purchased worldwide. The products are sold to customers in 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 granulated sugars and of sugar specialty products to consumers through food retailers. Additionally, 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.

Corporate governance

Information on corporate governance is provided in AGRANA's corporate governance report within this annual report, and on the Group's website at www.agrana.com/ en/ir/corporate-governance.

Non-financial information statement1

The sustainable AGRANA value chain2 in 2020|21

Customers and consumers

The thickness of lines marking the business relationships represents the relative volume of flows within the respective business segment.

Contract farming

Direct business relationship

No direct business relationship for AGRANA

3 Per tonne of product output.

Sustainability targets of the AGRANA Group

2050 Neutral CO2 balance (Scope 1+2+3)
for the whole AGRANA Group

2021|22 Collection of relevant emission data from upstream supply chain (Scope 3)

Eco-efficiency of our production

2040 Neutral CO2 balance (Scope 1+2) of the AGRANA Group's production operations

2025|26 25% reduction in emissions (Scope 1+2) from 2019|20 levels

Procurement

2021|22 All raw materials directly covered by the FSA verification system are to achieve at least FSA Silver level of sustainability

Sustainability targets of the segments

Fruit segment

Fruit preparations business Targets by 2025|26:

  • █ 20% of processed fruit is to achieve FSA Silver or equivalent
  • █ Total energy consumption3 of 1.95 GJ/t4
  • Water withdrawal3 of 4.24 m³/t4
  • █ 100% of production sites are to have a recognised social audit

Fruit juice concentrate business

Targets by 2030:

█ 100% sustainable sourcing as defined by the Sustainable Juice Covenant (see from page 61)

Targets by 2020|21:

  • Total energy consumption3 of 3.43 GJ/t
  • Water withdrawal3 of 4.21 m³/t

Starch segment

Targets by 2020|21:

Cumulative savings of 91 GWh through plant efficiency measures (since 2015|16)

Sugar segment

Targets by 2020|21:

Direct energy consumption3 of 2.49 GJ/t

Further information about the AGRANA value chain is provided at wsk-mini.agrana.com/index-en.html

Water withdrawal3 of 1.92 m³/t

4 The target applies to the fruit preparations plants within the 2018|19 GRI reporting boundaries (excluding primary processing facilities).

AGRANA reports non-financial sustainability matters (i.e., topics) that are material to its business activities by integrating them in the Group management report, with the relevant pages visually marked by a green footprint (for a description of the business model, see the section "Organisational structure" from page 36). This non-financial information statement provides an overview of AGRANA's understanding of sustainability, presents sustainability-related governance structures, and describes the AGRANA materiality matrix, the management approaches for the key non-financial matters/topics, the organisational and content boundaries of the sustainability reporting, and relevant Group-level performance indicators. Details on relevant actions 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's understanding of sustainability

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

At AGRANA we:

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

AGRANA has developed its understanding of sustainability through regular interaction with its stakeholders:

Formats of AGRANA's engagement with stakeholders in 2020|21

Key stakeholder groups Formats of dialogue
Raw material suppliers Regular advisory meetings (largely by telephone) as part of
the AGRANA4you programme; field visits, field days and trial tours in
small groups; contracting events in the Starch and Sugar segments,
both physical and as webinars; special webinars for new beet growers,
contracting meetings and technical exchanges outdoors at beet
storage locations; increased use of social media (notably Facebook)
Industrial customers Owing to the pandemic, no traditional trade fairs were held
last year. Instead, AGRANA participated in various online formats,
including the Biofach eSpecial of the Nuremberg trade fair in
February 2021, with 50 employees; implementation of various webinars
on specialised topics; launch of the "AGRANA inside" social media
campaign in collaboration with customers to illustrate the products
and areas of application in which AGRANA is represented;
conducting customer satisfaction surveys in the AGRANA Starch
and Sugar segments and at some fruit companies
Local communities Participation by the AGRANA Research & Innovation Center (ARIC)
and an Austrian AGRANA production site in the virtual "Long Night
of Research" science event; community contact by telephone and
in writing as part of local community relations
Investors and the public Ongoing investor relations and public relations work; digital
road shows for institutional investors; online press conferences and
virtual annual general meeting

As a result of the pandemic, many of the planned annual formats of stakeholder exchanges could not take place physically in the usual way but were shifted to the virtual space or implemented in micro and small groups while following Covid-19 prevention guidelines.

Material non-financial matters/sustainability topics

In the 2020|21 financial year, AGRANA's Fruit, Starch and Sugar segments processed a worldwide total of approximately 8.6 million tonnes of agricultural raw materials (prior year: 8.4 million tonnes) and sold about 5.4 million tonnes of resulting high-quality products (prior year: 5.4 million tonnes).

Based on its business activities, AGRANA has identified five sustainability issues of interest along its product value chain:

  • █ Raw material procurement Environmental and social criteria (i.e., labour practices and human rights) in the procurement of agricultural raw materials and intermediate products
  • █ Eco-efficiency of our production Environmental and energy matters in AGRANA's production
  • █ Our employees Working conditions and human rights in relation to AGRANA employees
  • █ Product responsibility Product responsibility and sustainable products
  • █ Compliance Legal and regulatory compliance as well as business conduct

In the 2020|21 financial year, AGRANA's sustainability core team again performed a materiality analysis to further develop the Group's sustainability strategy, with the involvement of selected representative stakeholders1. In this process, the environmental, economic and social impacts of individual sustainability aspects of AGRANA's business activities on society and the environment were assessed and the influence of these sustainability aspects on the decisions of stakeholders was scrutinised. The AGRANA Group's most significant impacts overall relate to energy consumption and emissions and arise primarily in the Starch and Sugar segments, as a result of their energy-intensive value-added processing of agricultural raw materials. The aspect of energy use and emissions has gained significantly in importance for the stakeholders surveyed compared to the 2017|18 responses, due to increased media coverage of the challenges of climate change and the resulting legal requirements, such as under the European Green Deal. This mounting importance is also reflected in increasing enquiries from customers about AGRANA's strategy for climate change adaptation and decarbonisation. However, the social and ecological impacts of corporate activities are also significantly influenced by the regulatory environment in which companies operate. For the stakeholders surveyed, the aspect

Sustainability at AGRANA

Segment-specific targets in the supply chain See page 39 and segment reports

Segment-specific environmental targets by 2020|21 See page 39 and segment reports

Value chain wsk.agrana.com/en

of compliance, especially with legal regulations, is therefore of the greatest importance. Product safety is also one of the top priorities for the survey participants. In the stakeholders' view, the focus in raw material procurement should be primarily on compliance with social standards. This is especially true in the Fruit segment, which purchases raw materials worldwide. This view thus also confirms the results of a survey conducted in 2019|20 among selected customers and suppliers as part of a comprehensive strategy process in the fruit preparations business (see materiality analysis at www.agrana.com/en/sustainability/materiality-analysis).

This report covers all matters in which AGRANA has material impacts or that have high significance for AGRANA's stakeholders (see the GRI content index, annual report 2020|21 from page 196).

Integration of sustainability responsibilities in AGRANA's organisational structure, and boundaries of this report

Governance responsibility for sustainability topics

Local management teams with functional responsibilities,

especially for production (energy efficiency, emissions) and occupational health and safety

Sustainability responsibilities are part and parcel of many or all corporate functions, and the chart therefore shows only the Group functions most significant in this regard. This functional integration of sustainability matters is also reflected in the fact that, within the Management Board and within the Supervisory Board, all members as a full board share joint responsibility for sustainability governance.

Organisational boundaries of reporting for 2020|21

The organisational boundaries for the reporting of the non-financial (i.e., sustainability) matters integrated in this 2020|21 annual report encompass all AGRANA Group companies worldwide and match the set of companies included in the Group's financial consolidation. The non-financial information thus does not include the joint ventures of the AGRANA Group except where explicitly indicated otherwise; the joint ventures are the HUNGRANA group (in the Starch segment) and AGRANA-STUDEN group and Beta Pura GmbH (in the Sugar segment). In total, the GRI and sustainability reporting thus covers 54 of a total of 56 production sites worldwide.

Management approaches for material non-financial matters

This section presents, on the one hand, the risks affecting AGRANA as per the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and, on the other hand, the material risks potentially triggered by AGRANA that are likely to have a negative impact on the matters under section 267a Austrian Commercial Code. It also satisfies the requirements of the Global Reporting Initiative (GRI). Further, it provides a content-based demarcation and a general Group-wide overview of matters of particular relevance to AGRANA's stakeholders.

Matters in the supply chain – Raw material procurement

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's sustainability work in the supply chain focuses on suppliers of agricultural raw materials and of agricultural intermediate goods (such as frozen fruit pieces) and the non-financial reporting scope is limited to this area of procurement.

The procurement of agricultural raw materials by AGRANA is directly affected by the physical risks of climate change, such as in the form of a rising number of extreme weather events, increased pest pressure and the resulting challenges in terms of raw material availability and price volatility. For details on the management of these risks, see the section "Risk Management", subheading "Procurement risks" on page 89.

At the same time, in the context of its raw material procurement, AGRANA indirectly contributes to the potentially negative effects of raw material cultivation or is linked to them through its choice of suppliers. This relates to negative ecological impacts, such as land consumption or land use competition, use of pesticides, soil erosion, water scarcity or poor water quality, as well as reduction of biodiversity. In addition, AGRANA's suppliers could also cause negative social impacts, such as through human rights violations, child labour or poor working conditions. Although AGRANA has no direct control over the operational management practiced by its suppliers, it strives to avoid or minimise these environmental and social risks through its selection of suppliers, thus following the precautionary principle. AGRANA has set out the requirements for agricultural suppliers in its principles for the procurement of agricultural raw materials and intermediate products, a document which, for the social criteria, incorporates AGRANA's Code of Conduct by reference. These procurement principles were revised in 2020|21 and are incorporated in supply contracts.

Documentation in connection with the Sustainable Agriculture Initiative Platform (SAI)

In order to work on and document environmental and social responsibility topics in the agricultural supply chain in a structured way regardless of the particular 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 Fruit, Starch and Sugar segments, participates in the working groups and committees relevant to its raw materials.

The SAI Platform 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 and judging the equivalencies of different documentation types and international certifications.

The underlying tool is always the Farm Sustainability Assessment (FSA) created by the SAI Platform. 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 the "Gold", "Silver", or "Bronze" level. AGRANA's goal is that those contract farmers who apply the FSA system achieve at least FSA Silver status.

The external verification of the FSA sustainability level of AGRANA's contract farmers is governed by a three-year cycle that began in 2017. For the 2020|21 financial year, re-verification audits were scheduled in all AGRANA segments, although some of these could not be fully completed due to Covid-19 restrictions.

All farmer groups whose external verifications were fully completed achieved FSA Silver level or higher. No substantial deviations were found in the audits. Recommendations for improvement of first aid provisions and emergency preparedness (e.g., regular renewal of the contents of first aid kits) and in the area of waste management will be incorporated in AGRANA's awareness-raising and training activities in the 2021|22 financial year.

In the 2020|21 financial year, AGRANA experts in agricultural production made valuable technical contributions to the further development of the guidelines and to the preparation of version 3.0 of the Farm Sustainability Assessment, which is being published in April 2021 and must be implemented within a transition period of not more than 18 months after publication.

43

In addition to the direct application of the FSA, the SAI Platform provides a comprehensive benchmarking system that ensures that farms which already have relevant certifications (e.g., Global GAP and Rainforest Alliance) or participate in company-specific sustainability programmes are assigned an FSA equivalence level, which significantly reduces the verification effort. The verified compliance with national legal requirements or the certification to 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 FSA sustainability status in the B2B space.

In the 2020|21 financial year, about 85% of the raw material volume processed by AGRANA was covered directly or indirectly in the SAI FSA system.

Biodiversity

Biodiversity is significant for AGRANA especially in its upstream value chain, i.e., in the farming landscape. In this annual report, to the extent possible, biodiversity aspects are reported in the section on the respective business segment – specifically, in the respective discussion of raw material procurement from contract growers. AGRANA also carries out some projects at its business locations to protect or increase species diversity. Thus, since 2016 AGRANA maintains a bee conservation project, which involved placing ten bee hives at each of the Group's Austrian sites. Some of these bee colonies were also used in workshops for elementary schools to teach relationships in nature.

Water in the upstream value chain

Water-related risks indirectly affecting AGRANA that exist in its supply chain, i.e., in agricultural production, are implicitly captured in the risk management process and risk reporting, as part of operational procurement risks (see the section "Risk management", page 89). The field crops which AGRANA procures in the European Union for processing are largely grown without irrigation. Data on water use in the production of agricultural raw materials are therefore not reported, due mainly to the limited relevance for the Group and also to limited data availability and reliability in international procurement.

Environmental aspects – Eco-efficiency of our production

The blueprint 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 and also includes a complaints process. It was revised in 2020|21 to reflect AGRANA's strategic goal of decarbonising its production by 2040.

Energy consumption and emissions

In the area of energy supply, AGRANA is exposed to transition risks, such as mooted national legal bans on (certain) fossil fuels or a CO2 tax. In AGRANA's view, a system of industry-wide CO2 taxation is socially necessary to establish the true costs of burning carbon and to incentivise investment in renewable technologies. If it is only introduced nationally or in the EU and without corresponding

Energy consumption (Scope 1+2) of the AGRANA Group Bar chart: total amounts, in million gigajoules (GJ)

Energy mix of the AGRANA Group in 2020|21

export relief or import charges for CO2 loads, this would limit the company's international competitiveness. For details on the management of these risks, see the section "Risk management", subheading "Non-financial risks" on page 88.

AGRANA's processing of agricultural raw materials is energy-intensive, especially in the Starch and Sugar segments, and is subject to the EU Emissions Trading Scheme. Through the greenhouse gas emissions generated, it has negative impacts on people and the environment. These impacts are within AGRANA's direct control. AGRANA is committed to operating responsibly and will continue to reduce harmful emissions more and more, in order to achieve net CO2-neutral production by 2040 (Scope 1+2).

The energy management systems at AGRANA's production sites provide the basis for, and support the monitoring of, decarbonisation. The energy management systems of about 37% of all AGRANA production facilities within the GRI reporting boundaries (see page 42) held an ISO 50001 certification in the financial year (prior year: 47.3%). This year-on-year decrease is mainly due to the planned changeover of the fruit juice concentrate business to ISO 14001 certification, which is more comprehensive in terms of other environmental aspects.

AGRANA's reporting of energy consumption and emissions has to date been confined to Scope 1 (direct energy consumption and direct emissions) and Scope 2 (indirect energy consumption and indirect emissions). Generally speaking, absolute energy consumption and emission figures are not very meaningful for gauging efficiency improvements because of the sometimes sharp annual

fluctuations in raw material processing quantities (especially in the Sugar segment and the fruit juice concentrate business) and the associated inherent variability in absolute energy consumption and emissions.

Data on so-called Scope 3 emissions – for example, from the agricultural supply chain, transport, provision of energy supply, business travel or employee mobility – have not been captured in a structured manner to date, as they are difficult to measure or obtain internationally and in some cases (such as business travel) only contribute relatively little to the CO2 footprint compared to Scope 1 and 2. To help determine a comprehensive corporate carbon footprint as a basis for the further development of AGRANA's climate strategy, the determination of Scope 3 emissions will be a focus of work in the coming financial years.

Decarbonisation strategy 2040

For all AGRANA business segments, the 2020|21 reporting year marked the end of the first target period for energy targets relevant to their operations. Target achievement is presented in the respective segment reports (see from pages 61, 68 and 73).

As the AGRANA energy targets for the period from 2014|15 to 2020|21 did not yet address the targets of the Paris climate accord, AGRANA worked intensively in the year under review to develop a decarbonisation strategy in accordance with the currently known requirements of the European Green Deal and the Austrian energy and climate plan, which provide for CO2 neutrality by 2050 and 2040, respectively.

Fruit segment

AGRANA is committed to the goal of decarbonising its production activities (Scope 1+2) by 2040. By 2050, greenhouse gas emissions from the upstream supply chain (Scope 3) are also to be avoided, in order to achieve net CO2 neutrality along the entire value chain. The development of what are known as science-based targets that are consistent with the Paris Agreement on climate is an important focus of work on the path to climate neutrality.

To achieve this ambitious goal, AGRANA developed a phased plan in the year under review and already set a quantitative target for the first stage to 2025|26.

By 2025|26, AGRANA intends to invest about € 10 million per year to save 25% of the greenhouse gas emissions (Scope 1+2) caused by its production, relative to the base year 2019|20. Planned measures for this first decarbonisation stage are:

  • █ A package of actions to switch to electricity from renewable sources (i.e., installation of photovoltaic systems on AGRANA's own production buildings and/or purchase of external green electricity), with implementation already begun in Austria in the 2020|21 financial year
  • █ The phase-out of coal as an energy source at the last two coal-fired sugar production sites in Sereď, Slovakia (2021|22) and Opava, Czech Republic (2025|26)
  • █ Implementation of energy efficiency measures in all business segments

AGRANA follows the principle of complete raw material utilisation to make core products and by-products (the latter being mainly animal feed and fertilisers). In the second stage from 2026|27 onwards, energy recovery from low-protein raw material residues could be added to the existing direct material use in order to continue to utilise all raw material components not just completely, but also optimally in terms of climate protection. At AGRANA's Hungarian sugar factory in Kaposvár, beet pulp and other beet residues have already been used for biogas production for several years (see the section "Sugar segment", page 75). However, as the biomass utilisation for energy recovery cuts into feedstuff revenue, the right business conditions are required for it to be implemented economically. What is urgently needed in order to achieve the transformation to a low-emission society and facilitate companies' investment decisions to this end is a comprehensive emissions trading system that transparently reveals the CO2 footprint of every consumer decision in the areas of food, housing, mobility and leisure behaviour and allows carbon-intensive lifestyles to be identified by their higher costs. Based on current assumptions, AGRANA would have to invest a total of about € 400 million by 2040 to avoid the greenhouse gas emissions (Scope 1+2) generated in its production during the processing of the raw materials used.

From 2025, in collaboration with its suppliers and partners, AGRANA will also seek to implement structured measures to reduce the greenhouse gas emissions generated in its supply chain (Scope 3 emissions) that it cannot directly influence.

46

Water withdrawal Water discharge Water consumption

Water and effluent (wastewater)

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 removal of water in water-stressed regions, as well as poor quality or temperature of discharged wastewater, represent environmental and social risks.

AGRANA evaluated the water risk for all its production sites in 2019|20 using the WWF Water Risk Filter and the Aqueduct Water Risk Atlas of the World Resources Institute, which cover the above risks and numerous others. In the 2020|21 financial year, based on these analytical tools, 13 of the AGRANA sites (or 24.1%) within the GRI report boundaries (see page 42), mostly belonging to the globally operating Fruit segment, were for various reasons located in areas with high or very high water risk. Although none of AGRANA's production sites have so far been operationally affected by a shortage of high-quality water or caused significant problems for the surrounding water users, the sustainable, responsible use and discharge of water, in compliance with all legal standards, is an important aspect of AGRANA's environmental policy. Further details on water management at the production sites are provided in the segment reports (see from pages 63, 69, and 75).

In its quest for efficiency, AGRANA utilises the water contained in the agricultural raw materials for its processes. Its sugar factories (processing sugar beet) and apple juice concentrate plants respectively obtain about 75% and 85% of their process water needs from their raw materials and, after using and treating the water in accordance with all legal requirements, make it available again to other users. Overall, the AGRANA Group discharges more water than it withdraws and thus has a negative water consumption balance.

AGRANA reports water and wastewater figures solely for its core business, the processing of agricultural raw materials in its production plants. Absolute values of water withdrawal and discharge have only very limited meaning as a measure of water use efficiency, given that annual raw material processing quantities fluctuate. Some AGRANA segments had water withdrawal targets, relevant to their business activity, for the target period to the end of the 2020|21 financial year. Target achievement is presented in the respective segment reports (see from pages 63 and 75).

Waste

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 Starch and Sugar 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.

Waste generation at the AGRANA Group

within the GRI reporting boundaries (see page 42)

2020 21 2019 201 2018 19
Total amount of waste
Of which hazardous waste
95,397 t
438 t
96,100 t
635 t
107,917 t
585 t
Waste per tonne
of product output
Of which hazardous waste
22.6 kg
104 g
23.1 kg
153 g
25.9 kg
140 g

Based on total product output, hazardous waste in the 2020|21 financial year amounted to about 22.6 kilograms per tonne of product (core and by-products), of which 104 grams represented hazardous waste. In accordance with legal requirements, this material was collected and transferred to qualified waste disposal providers for appropriate treatment (for details, see the business segment reports, from pages 64, 69 and 76).

Transport

Although the transport of raw materials and products only represents a comparatively small share of typically less than 10% of the carbon footprint of AGRANA products (varying with the calculation method and country), the Group strives to make transport activities that are within its sphere of influence as sustainable as infrastructural and economic constraints will allow.

Thus, the 2020|21 modal split for inbound and outbound logistics in the AGRANA Group was approximately 75.8% road, 18.3% rail and 5.9% water.

Employee matters – Our staff

The internal normative basis for AGRANA's relationship with its employees is the AGRANA Code of Conduct, which was last revised in 2018|19. Among other things, it prohibits any discrimination or harassment, forbids child labour and forced labour, and addresses issues of health and safety in the workplace. It also affirms the rights of free association and collective bargaining.

By adhering to its Code of Conduct, the Group expects to avoid or minimise economic risks to 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). In 2019|20 the Code of Conduct was amended to include a Group Diversity and Inclusion Policy.

The employment relationships of about 70.5% of AGRANA employees1 worldwide in 2020|21 fell under collective agreements. The interests of approximately 80.5% of staff were 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. Employees also have access to the AGRANA Whistleblowing System.

For AGRANA, its employees and the communities in which it operates, the 2020|21 financial year was defined by the Covid-19 pandemic. The Group was able to keep employee infection rates low, maintain operations at all sites2 and ensure unrestricted deliveries to customers. AGRANA achieved this by adapting work processes through increased distancing and strengthened hygiene rules on the production side, remote-work arrangements for administrative staff to the extent possible, and in-house Covid-19 testing offered at many sites in the second half of the year.

Respect for human rights

SEDEX membership and SMETA audits

Since 2009, AGRANA Beteiligungs-AG is a member of the Supplier Ethical Data Exchange (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). At the balance sheet date in 2021, twenty-six of the AGRANA production sites (or 48.1%; prior year: 45.5%) 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 2020|21 regarding working conditions and human rights in relation to AGRANA employees are discussed in the section "AGRANA's people" (see from page 81).

Anti-corruption and anti-bribery – Compliance

The risks, management approaches and activities in 2020|21 with regard to compliance and business conduct, anti-corruption and anti-bribery are presented in the compliance section of the corporate governance report (see from page 25).

Social matters

Product responsibility and sustainable products Product safety and quality

The foremost aim of the AGRANA quality policy is to produce foods and feedstuffs that meet customer requirements and are safe for consumption. Adherence to the many applicable national and international regulations for product safety at all production sites worldwide is an absolute priority for AGRANA.

In addition to the local legal requirements for foods and feeds, AGRANA is guided by the international 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. 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.

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+ and the EFISC Feed Standard. Overall in the 2020|21 financial year, 100% of AGRANA's feed production sites held certifications to at least one of these standards or of the locally relevant international ones.

1 Calculated based on the average number of employees (headcount) within the GRI reporting boundaries (see page 42).

2 Except for general, government-imposed regional closures of six working days each at the Indian production site in March 2020 and the Egyptian production site in June 2020.

The levels of excellence in the hygiene and quality standards of the foods and feeds produced by AGRANA are continually raised further with the aid of external certifications, customer and supplier audits and an internal audit system. No product recalls affecting end consumers were required in 2020|21.

Sustainable AGRANA products

In the prior, 2019|20 financial year, AGRANA undertook an assessment of its product portfolio based on the information then available on the unified classification system for environmentally sustainable economic activities1 (known as the "EU taxonomy"). On this basis, the following AGRANA product categories were defined as potentially sustainable:

  • █ Products certified to an organic standard
  • █ Products whose raw materials fulfil the sustainability criteria of the FSA Gold or Silver standard
  • █ Substitutes for products of fossil origin (e.g., bioethanol, and starches for use in bioplastics, cosmetics, and adhesives)
  • █ Products made in a manner consistent with a circular economy (all feeds and fertilisers produced by AGRANA)

In summer 2020, the European Union adopted the EU taxonomy, which defines criteria for reporting sustainable "green" sales, investment and operating expenses. To be considered sustainable, economic activities must serve one of six environmental objectives – climate change mitigation, adaptation to climate change, sustainable use of water resources, transition to a circular economy, pollution prevention, and protection of ecosystems and biodiversity – without significantly compromising any of the other five. In addition, sustainable business activities should meet technical screening criteria, which are currently being developed for enactment as delegated acts. Although reporting under this taxonomy is to become mandatory from the 2021|22 financial year, it is still unclear which AGRANA products will be subject to which regulations and whether the product categories classified by AGRANA as potentially sustainable will actually be able to meet the requirements that will then apply (see the section "Risk management", subheading "Non-financial risks" on page 93).

Disseminating knowledge on nutrition and health In 2020|21, media coverage on the subject of health was fully preoccupied with Covid-19. The topic of nutrition, including that of dietary sugar, took a back seat for much of the year under review.

The pandemic also limited AGRANA's engagement in knowledge transfer in the areas of general nutrition, lifestyle, energy balances and the properties of sugar in particular. Activity in this regard was restricted to providing support for initiatives such as those of the Forum for Nutrition Today ("Forum Ernährung heute"), the Austrian Nutrition Society ("Österreichische Gesellschaft für Ernährung") and the platform Land Grows Life ("Land schafft Leben").

Social engagement

Beyond striving to maximise the environmental and social sustainability of its core business activities, AGRANA is also engaged as a responsible corporate citizen in its host communities. As part of this engagement, the Group is involved in various sustainability-related initiatives and in industry associations and advocacy groups (see page 50).

Social consciousness forms an important pillar of AGRANA's corporate culture. Among other expressions of this, AGRANA Fruit México was again awarded the ESR2 seal for its high degree of social engagement. Separately, employees of AGRANA Fruit México participated in the Volunteer Day initiative in the 2020|21 financial year to collect donations for people in need. As well, under a sponsorship programme, the AUSTRIA JUICE Group supported Team Rynkeby, an initiative whose bicycle tour raises money for critically ill children and their families.

AGRANA's contribution to the

UN Sustainable Development Goals In line with its business activities and its sustainability priorities in the areas of climate change mitigation, 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 UN goals have also engaged the private sector in furthering the achievement of development goals. In addition, AGRANA contributes to the attainment of Goals 2 to 7 and 12 to 14.

1 Criteria for environmentally sustainable economic activities from the Proposal for a Regulation of the European Parliament and of the Council on the Establishment of a Framework to Facilitate Sustainable Investment, May 2018.

2 Empresa socialmente responsable.

Memberships in major sustainability initiatives

Initiative Member companies
from AGRANA Group
Since Initiative's aim and member base
Sustainable Agriculture
Initiative Platform (SAI)
AGRANA Beteiligungs-AG1 2014 Aim: Develop guidelines for and implement
sustainable agriculture practices;
Members: from the food production value chain
The Sustainable
Juice Covenant
AUSTRIA JUICE GmbH 2018 Aim: global initiative for sustainable
production of fruit- and vegetable-based juices,
purees and juice concentrates;
Members: beverage industry, especially members
of the European Fruit Juice Association (AIJN)
Supplier Ethical Data
Exchange (SEDEX)
AGRANA Beteiligungs-AG1 2009 Aim: promote sustainable social and
environmental practices in the value chain;
Members: about 60,000 companies worldwide
EcoVadis AUSTRIA JUICE GmbH
and some sites
of Fruit segment;
AGRANA Stärke GmbH;
AGRANA Zucker GmbH
2013 Aim: supplier assessment on environmental
and social criteria throughout their value chain;
Members: about 60,000 companies
in a wide range of industries
ARGE Gentechnik-frei
(Platform GMO-Free)
AGRANA Beteiligungs-AG1 2010 Aim: promote and safeguard Austrian
GMO-free agriculture and food production;
Members: from the entire food value chain,
including many retailers

Memberships in industry associations and advocacy groups

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

Financial results

The consolidated financial statements for the 2020|21 financial year (the twelve months ended 28 February 2021) were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

Changes in the scope of consolidation

A detailed overview of the additions to and removals from the scope of consolidation is provided in the notes to the consolidated financial statements (from page 115). In total in the consolidated financial statements, 58 companies were fully consolidated (29 February 2020 year-end: 61 companies) and 13 companies were accounted for using the equity method (29 February 2020: 13 companies).

Revenue and earnings

Consolidated income statement
(condensed)
2020 21 2019 201 Change
% / pp
Revenue €000 2,546,984 2,480,732 +2.7%
EBITDA2 €000 191,219 183,065 +4.5%
Operating profit before
exceptional items and results of
equity-accounted joint ventures €000 73,113 73,136 0.0%
Share of results of
equity-accounted joint ventures €000 17,513 16,727 +4.7%
Exceptional items €000 (11,935) (22,924) +47.9%
Operating profit [EBIT]3 €000 78,691 66,939 +17.6%
EBIT margin % 3.1 2.7 +0.4 pp
Net financial items €000 (18,496) (17,191) –7.6%
Profit before tax €000 60,195 49,748 +21.0%
Income tax expense €000 (5,210) (18,567) +71.9%
Profit for the period €000 54,985 31,181 +76.3%
Attributable to shareholders of the parent €000 59,787 28,051 +113.1%
Earnings per share 0.96 0.45 +113.3%

The AGRANA Group's revenue of € 2,547.0 million in the 2020|21 financial year represented a slight increase from the prior year. While revenue in the Fruit segment (€ 1,166.6 million, down 1.6%) eased somewhat, Starch segment revenue (€ 821.9 million, up 1.8%) rose slightly and revenue in the Sugar segment (€ 558.5 million, up 14.4%) increased significantly.

Revenue by segment in 2020|21

Revenue by segment in 2019|20

1 The prior-year data have been restated under IAS 8. For details, see the Notes, page 114.

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

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

Subsidiaries based in Austria generated 63.5% (prior year: 56.7%) of Group revenue.

Operating profit (EBIT) was € 78.7 million in 2020|21, an increase of 17.6% from the year before. The prior year's Group EBIT was corrected from € 87.1 million to € 66.9 million as a result of an impairment charge on the goodwill of the Sugar segment, with the write-down recognised in exceptional items (for details, see the notes to the consolidated financial statements, page 114). In the Fruit segment, EBIT decreased to € 41.2 million, a reduction of 26.3% driven primarily by a very significantly weaker performance in the fruit juice concentrate business. EBIT in the Starch segment declined by 13.8% to € 64.8 million owing to a challenging market environment faced especially in the financial fourth quarter of 2020|21. In the Sugar segment, higher sugar sales prices and volumes than in the prior year led to a significant improvement in the operating result, although in absolute terms, EBIT remained significantly negative at a deficit of € 27.3 million. Details on the share of results of equity-accounted joint ventures and on exceptional items can be found in the segment reports and the consolidated financial statements.

Net financial items in 2020|21 amounted to a net expense of € 18.5 million (prior year: net expense of € 17.2 million). While net interest expense improved by € 0.4 million, currency translation differences were somewhat more negative than in the prior year, by € 0.3 million. The moderate overall deterioration in net financial items was thus due to a negative change of € 1.4 million in other financial items, driven by higher commitment fees for committed but undrawn credit facilities and by annualised fees for renewals of syndicated and bilateral loans.

Net financial items 2020 21 2019 20 Change
%
Net interest (expense) €000 (7,977) (8,409) +5.1%
Currency translation differences €000 (6,952) (6,616) –5.1%
Share of results of non-consolidated
subsidiaries and outside companies €000 22 18 +22.2%
Other financial items €000 (3,589) (2,184) –64.3%
Total €000 (18,496) (17,191) –7.6%

Revenue by region in 2020|21

Profit before tax increased from the prior year's € 49.7 million to € 60.2 million. After an income tax expense of € 5.2 million, representing a tax rate of 8.7% (prior year: 37.3%), the Group's profit for the period was € 55.0 million (prior year: € 31.2 million). Profit for the period attributable to shareholders of AGRANA was € 59.8 million (prior year: € 28.1 million); earnings per share increased to € 0.96 (prior year: € 0.45).

Investment

In 2020|21, AGRANA invested a total of € 72.3 million, or € 77.4 million less than in the prior year. Purchases of property, plant and equipment and intangibles were thus well below operating depreciation and amortisation, with the following distribution by business segment:

Investment1 2020 21 2019 20 Change
% / pp
Fruit segment €000 34,185 56,495 –39.5%
Starch segment €000 22,199 73,609 –69.8%
Sugar segment €000 15,905 19,557 –18.7%
Group €000 72,289 149,661 –51.7%
Depreciation and amortisation €000 118,106 109,929 +7.4%
Investment coverage % 61.2 136.1 –74.9 pp

Investment in the Fruit segment focused mainly on capacity expansions and plant modernisation; in the Starch and Sugar segments it centred on improvements in product quality and energy efficiency. The key projects in the individual business segments are detailed in the segment reports.

Cash flow

Consolidated cash flow statement 2020 21 2019 20 Change
(condensed) %
Operating cash flow before
changes in working capital €000 198,825 187,831 +5.9%
Changes in working capital €000 (14,620) (52,982) +72.4%
Interest received and paid and
income tax paid, net €000 (20,582) (24,753) +16.9%
Net cash from operating activities €000 163,623 110,096 +48.6%
Net cash (used in) investing activities €000 (79,646) (155,578) +48.8%
Net cash (used in)/from financing activities €000 (59,454) 57,322 –203.7%
Net increase in cash and cash equivalents €000 24,523 11,840 +107.1%
Effects of movements in foreign exchange
rates on cash and cash equivalents €000 (5,437) (511) –964.0%
Effect of IAS 29 on
cash and cash equivalents €000 (1,530) (496) –208.5%
Cash and cash equivalents
at beginning of period €000 93,415 82,582 +13.1%
Cash and cash equivalents
at end of period €000 110,971 93,415 +18.8%
Free cash flow1 €000 83,977 (45,482) +284.6%

Operating cash flow before changes in working capital was up € 11.0 million year-on-year at a new total of € 198.8 million. After a mainly inventory-driven, significantly smaller increase of € 14.6 million in working capital than a year ago (prior year: increase of € 53.0 million), net cash from operating activities rose to € 163.6 million (prior year: € 110.1 million). Net cash used in investing activities was € 79.6 million, a marked decrease from the prior year as a result of significantly lower outflows for purchases of property, plant and equipment and intangibles (prior year: net cash use of € 155.6 million). This also included the purchase price payment for the acquisition of the US company Marroquin Organic International, Inc., based in Santa Cruz, California, by AGRANA Stärke GmbH. Net cash used in financing activities amounted to € 59.5 million and was driven above all by the dividend payment (prior year: net cash from financing activities of € 57.3 million, primarily reflecting the raising of a Schuldscheindarlehen, or bonded loan). Free cash flow returned to positive territory, at € 84.0 million (prior year: negative FCF of € 45.5 million).

Financial position

Consolidated balance sheet 28 Feb 29 Feb Change
(condensed) 2021 20202 % / pp
Non-current assets €000 1,232,021 1,311,814 –6.1%
Current assets €000 1,240,713 1,217,519 +1.9%
Total assets €000 2,472,734 2,529,333 –2.2%
Equity €000 1,329,097 1,367,021 –2.8%
Non-current liabilities 597,415 565,291 +5.7%
Current liabilities €000 546,222 597,021 –8.5%
Total equity and liabilities €000 2,472,734 2,529,333 –2.2%
Net debt €000 443,524 464,012 –4.4%
Gearing ratio3 % 33.4 33.9 –0.5 pp
Equity ratio % 53.8 54.0 –0.2 pp

3 Ratio of net debt to total equity.

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

2 The prior-year data have been restated under IAS 8. For details, see the Notes, page 114.

Total assets at 28 February 2021 were € 2,472.7 million, a decrease of € 56.6 million from the year-earlier level.

Non-current assets declined moderately, by € 79.8 million, as a result mainly of depreciation that significantly exceeded investment. Current assets rose slightly, by € 23.2 million, with inventories marginally reduced while trade receivables saw a slight increase.

Balance sheet structure at 28 February 2021

AGRANA's equity ratio of 53.8% was 0.2 percentage points below that of one year earlier. Non-current liabilities rose moderately, by € 32.1 million, due primarily to an increase in long-term borrowings. Current liabilities fell by € 50.8 million as a result of reduced current borrowings.

Net debt as of 28 February 2021, at € 443.5 million, was down € 20.5 million from the 2019|20 year-end level. The gearing ratio was thus 33.4% at the balance sheet date (29 February 2020: 33.9%).

To fund the working capital requirements, AGRANA in the 2020|21 for the first time obtained a "green" revolving credit facility, with a limit of € 250 million and a basic term of three years. Featuring an interest component that is tied to an ESG rating1, the facility includes a renewal option for a further two years. As well, two low-interest loans of € 50 million and € 26 million were raised through the TLTRO2 refinancing programme of the European Central Bank, both with a term of three years.

Segment financial results

The Fruit segment's revenue in 2020|21 was € 1,166.6 million, or slightly below the year-earlier level. Revenue on the fruit preparations side of the business eased somewhat, for sales volume reasons. Thus, AGRANA Fruit's revenue increased in the Europe and North America regions, while the other regions experienced a slight decrease. In the fruit juice concentrate activities, revenue remained steady, as higher apple juice concentrate prices for product from the 2019 and 2020 crop were offset by lower sales volumes. The Fruit segment was responsible for 45.8% of Group revenue (prior year: 47.8%).

EBIT was € 41.2 million, representing a decrease of 26.3% from one year earlier. The causes of the deterioration lay in the fruit juice concentrate business, where reduced delivery volumes were coupled with lower contribution margins of apple juice concentrate produced from the 2019 and 2020 crop, as well as with idle-capacity costs. The fruit preparations business, overcoming numerous challenges, significantly surpassed its year-earlier profitability in terms of operating profit before exceptional items and before results of equity-accounted joint ventures. This was achieved, among other ways, through savings in administration and an improvement in results in Mexico and North America. At EBIT level, the Fruit segment registered only a moderate increase, due to a net exceptional items expense of € 10.9 million.

Further details on the results in the Fruit business are given in the segment report from page 59.

1 ESG stands for "environmental, social and governance". The ESG rating is a measure of how sustainable a company or financial product is, i.e., to what extent ESG criteria are implemented in it.

2 Targeted longer-term refinancing operations.

Revenue in the Starch segment rose slightly in the 2020|21 financial year, by 1.8% to € 821.9 million. Volume and revenue growth was achieved for wheat starch, through the capacity expansion in Pischelsdorf, Austria. At the same time, market demand for almost all core products eased, leading to higher pressure on prices. Reflecting the impact of the Covid-19 pandemic, ethanol quotations were highly volatile. Revenue with by-products increased slightly on higher wheat gluten sales. The Starch segment accounted for 32.3% of the Group's revenue (prior year: 32.5%).

With EBIT of € 64.8 million, the Starch segment's operating profit came in 13.8% below that of the previous year. While the margins on the core products narrowed amid reduced market demand, the purchase prices for raw materials and energy were in line with the prior year. As a consequence of the larger investments in the last several financial years, depreciation and personnel costs also increased. The earnings contribution of the equity-accounted HUNGRANA group rose from € 16.3 million to € 19.4 million. Although the Hungarian joint venture also recorded price declines for saccharification products and alcohols, currency effects from exports transacted in euros had a positive impact on the result. On balance, the EBIT profit margin of the Starch segment in 2020|21 dipped to 7.9%, from 9.3% in the prior year.

Further details on the results of the Starch business are provided in the segment report from page 65.

In 2020|21, revenue in the Sugar segment grew by a significant 14.4% to € 558.5 million. Both higher sugar selling prices and increased sugar sales volumes led to this growth. By-product revenue also exceeded the prior-year level. The Sugar segment generated 21.9% of the Group's revenue (prior year: 19.7%).

Although the 2020|21 EBIT result was still negative at a deficit of € 27.3 million, it marked a substantial improvement year-on-year thanks to a more benign sales price environment and the higher quantities sold. The 2020 campaign once more entailed high idle-capacity costs, as the beet harvest was again poor, due in part to drought and pest infestation in Austria. The EBIT contribution of the equity-accounted AGRANA-STUDEN group was € 0.2 million (prior year: € 0.6 million) and that of Beta Pura GmbH was a deficit of € 2.1 million (prior year: deficit of € 0.2 million). Sugar EBIT in 2020|21 also included a net exceptional items expense of € 0.2 million. In the prior year, the net exceptional items expense was € 20.9 million, due primarily to a retrospective goodwill write-down (for details, see the Notes, page 114).

Further details on the results in the Sugar business are given in the segment report from page 70.

Events after the balance sheet date

No significant events occurred after the balance sheet date of 28 February 2021 that had a material effect on AGRANA's financial position, results of operations or cash flows.

Fruit segment

Basics of the Fruit segment

Marketing relationship B2B

Products

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

Raw materials processed

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

Key markets

Marketed worldwide

Customers

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

Special strengths

Custom-designed, innovative products

Fruit 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 its 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 comprised 26 production sites in 19 countries for fruit preparations, and 15 plants in seven countries for the production of apple and berry juice concentrates.

Revenue and earnings

Fruit segment 2020 21 2019 20 Change
% / pp
Total revenue €000 1,167,600 1,186,347 –1.6%
Inter-segment revenue €000 (1,029) (890) –15.6%
Revenue €000 1,166,571 1,185,457 –1.6%
EBITDA1 €000 94,034 101,090 –7.0%
Operating profit before
exceptional items and results of
equity-accounted joint ventures €000 52,882 58,002 –8.8%
Exceptional items €000 (11,723) (2,070) –466.3%
Operating profit [EBIT] €000 41,159 55,932 –26.4%
EBIT margin % 3.5 4.7 –1.2 pp
Investment2 €000 34,185 56,495 –39.5%
Number of employees (FTE)3 5,695 6,194 –8.1%

Revenue in the fruit preparations business edged lower by just under 2%, as a result mainly of slightly reduced overall sales volumes.

This came as AGRANA Fruit's revenue increased in Europe and North America, but decreased in the other regions due mainly to the pandemic. The extent of the reduction relative to the prior year was significant in South America, in Russia and in the Dirafrost business.

An analysis of sales volume by product category indicates declines for the non-dairy fruit preparations4 as well as in fruit reselling and in frozen fruit. The quantities sold into the dairy sector remained steady.

In terms of earnings, the fruit preparations business achieved moderate growth. First of all, savings in administration had a positive impact on the bottom line. Second, a good business performance in Mexico (where margins in primary processing increased) and in North America (through volume growth) also was beneficial for operating earnings. A factor which detracted from EBIT in the fruit preparations activities was a net exceptional items expense of € 10.9 million (prior year: net expense of € 2.1 million). These one-off effects consisted of expenses related to a cost-saving programme, a property, plant and equipment write-down in Egypt, and provisions for a product complaint in Europe.

  • and operating depreciation and amortisation.
  • 2 Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill.
  • 3 Average number of full-time equivalents in the reporting period. 4 The "non-dairy" product segments are ice-cream, bakery, and food service.

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

The sale of the plant in Coronda, Argentina, which was shut down some time ago, in the 2018|19 financial year, was successfully and definitively completed in August 2020. As well, the former Dirafrost plant in Yube, Serbia, was divested in September 2020.

Revenue in the fruit juice concentrate business was steady in 2020|21 (up 0.5%) compared to the year before. Higher apple juice concentrate prices for product from the 2019 and 2020 crop coincided with lower sales volumes.

Smaller harvest volumes during the 2020 apple campaign led to severely limited raw material availability for AUSTRIA JUICE, with high prices in the European main crop production countries of Poland and Hungary.

In the fruit juice concentrate business, the significant reduction in EBIT from the prior year was due to a poorer margin and sales volume situation and the considerably reduced capacity utilisation of the plants in the 2020 processing season. The EBIT result also included a net exceptional items expense (€ 0.8 million) for the impending closure of one of five plants in Hungary.

Market environment

The trajectory of AGRANA Fruit's main market is being slightly negatively affected by the Covid-19 pandemic. Current forecasts by Euromonitor call for average annual volume growth of just under 1% to 2024 in the global market for spoonable fruit yoghurts (the principal market for AGRANA's fruit preparations business). Volume in the Western Europe and North America regions is predicted to stagnate. Positive sales volume trends are seen in Asia-Pacific, at estimated average annual growth of close to 2%, and in the Middle East and Africa at 4.5% per year. Globally, the category of drinkable yoghurts is projected to have significantly higher average annual growth of 5.3% over the same period. Besides the yoghurt market, ice-cream and bakery are significant product categories in the diversification of the fruit preparations activities. The ice-cream market is to grow by about 2% p.a. globally in the period to 2024. In Australia and New Zealand, this market is even expected to expand at a markedly higher rate of about 4% p.a. In the bakery category, the product group of biscuits, snack bars and fruit snacks is particularly relevant. It is forecast to grow at a global rate of approximately 2% p.a. to 2024.

The market environment for fruit preparations is determined by consumer trends in the global markets for, especially, dairy products, ice-cream and bakery. The top

trends continue to revolve around naturalness, sustainability, health, pleasure and convenience. The Covid-19 pandemic is having a profound impact on many of these consumer trends. For example, demand is growing for comfort foods, i.e., foods that convey a combined feeling of pleasure, security and nostalgia. More than before, consumers are also focusing on the health theme. At the same time, the global recession is driving a demand trend towards lower-priced and simpler products.

The fruit juice concentrate business remains subject to the trends in favour of lower fruit juice content in beverages and towards not-from-concentrate 100% juices. As a consequence, there is growing demand for beverage bases with a reduced fruit juice content. AUSTRIA JUICE addresses this trend with its strategic emphasis on the increased production of beverage bases and aromas.

Demand from the European food retail sector for apple juice concentrate at first rose significantly as a result of the first lockdown in spring 2020, but then declined continually in the summer months. Faced with renewed Europe-wide lockdowns in autumn 2020, customers were slow in their contracting during the 2020 campaign.

In the food service market for juices and concentrates, in general, there were sharp slumps in demand during the 2020|21 financial year. Although the summer months brought a slight improvement, the renewed lockdowns in connection with the Covid-19 crisis led to a pattern of hesitant contract-closing behaviour on the part of buyers in this area as well.

The apple quantities available for the 2020 campaign were well below expectations and the associated higher raw material prices could only partially be passed through to the market.

The berry juice campaign conducted in the period under review was likewise characterised by uncertainty for customers regarding the further business trajectory. The market environment was challenging, especially for cherry and raspberry, and this translated into margins below those of the prior year.

Impacted by Covid-19, sales volumes of beverage bases were lower than expected. The positive sales trend in the segment of natural aromas continued in 2020|21. At the beginning of the coronavirus pandemic, by producing disinfectants at its plant in Kröllendorf, Austria, AGRANA made an important contribution to meeting the locally increased demand for these products, which was also positively reflected in earnings.

Sustainability in the Fruit segment

Fruit preparations Targets in the supply chain by 2025|26

█ 20% of processed fruit volume to have FSA Silver or equivalent certifications

Environmental targets by 2025|26

█ Total energy consumption of 1.95 GJ per tonne of product1

Water withdrawal of 4.24 m³ per tonne of product1 (4.09 m³ in 2020|21)

Fruit juice concentrates Overall target by 2030

█ 100% sustainable sourcing, production and trading in compliance with the Sustainable Juice Covenant

Status in

the supply chain SAI FSA audits in Hungary and Poland confirmed at least Silver level (about 27% of processed raw material volume)

Environmental targets by 2020|21

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

Water withdrawal of 4.21 m³ per tonne of product

Value chain

wsk.agrana.com/ en/fruit

Raw materials and production

In 2020|21, about 384,000 tonnes of raw materials were purchased for the fruit preparations activities. The average raw material prices for fruits and ingredients were up slightly overall from the prior year. Price increases were incurred mainly for berries (raspberry and blackberry) and tropical fruits (mango and pineapple).

At about 70,000 tonnes purchased, strawberry was the principal fruit for fruit preparations. Despite lower available raw material volumes due to suppliers' limited processing capacity in connection with the Covid-19 crisis in the regions with a Mediterranean climate, AGRANA was able, on average across all procurement regions, to purchase strawberry at a price that was in line with the prior year.

The second most important fruit by processing volume for fruit preparations was peach, at approximately 23,000 tonnes. The main peach sourcing markets for the AGRANA fruit preparations sites worldwide were the southern European fruit-growing regions of Greece and Spain, followed by China. Average prices were slightly below the prior-year level.

Blueberry ranked third with a processing volume of almost 14,000 tonnes. Canadian blueberries were up significantly in price as a result of persistent drought in the summer months and high demand from the fresh market. However, the average price paid for blueberry was kept at the year-ago level, partly by substituting European varieties.

In tropical fruits, a Covid-19-induced significant decline in supply of mango puree from India caused prices to rise by as much as 12% from the year before.

In the fruit juice concentrate business, available supplies of apples in the foremost European processing regions (Poland and Hungary) were significantly below the long-term average harvest volumes, only reaching the low level of the prior year. The Chinese apple crop was satisfactory.

The berry processing season for concentrate production was on the whole marked by limited available volumes of the principal fruits. The prices for the most important fruit categories (strawberry, sour cherry and black currant) were above those of the prior year.

Engagement in the upstream value chain

Supplier environmental and social assessment

In the prior financial year, as part of the development of a new business strategy for the fruit preparations activities for the period to 2025, AGRANA also analysed the procurement of fruit and other raw materials and redefined the database.

In the 2020|21 financial year, 17.9% (prior year: 16.7%) of the raw materials (fruits and other ingredients) procured by the purchasing organisation, AGRANA Fruit Services GmbH, for the fruit preparations segment had a valid sustainability certification as defined in the AGRANA principles for the procurement of agricultural raw materials and intermediate products. Of the fruits processed worldwide, 9.0% had a sustainability certification (prior year: 5.6%); as in the previous years, these were largely organic certifications. The target under the strategy of the fruit preparations business for the period to 2025 is to increase the proportion of processed fruit with a sustainability certification to 20%. To document compliance with sustainability criteria for raw materials from conventional cultivation, the Farm Sustainability Assessment (FSA) is used in the fruit preparations business, too, as are programmes that are FSA-equivalent under the benchmarking system of the Sustainable Agriculture Initiative Platform (see from page 43 for details).

To evaluate its suppliers for their adherence to social criteria, AGRANA Fruit Services invites new suppliers to participate in the Supplier Ethical Data Exchange, or SEDEX (for details on SEDEX, see page 48). In the 2020|21 financial year, both the basis for supplier risk assessment and the SEDEX questionnaire were changed. At the end of the reporting year, the fruit preparations business had SEDEX data (and audit documents where applicable) for 67.9% of the processed raw material volume.

1 The target applies to the fruit preparations plants (excluding primary processing facilities) within the 2018|19 GRI reporting boundaries (see 2018|19 annual report).

By 2025|26, the fruit preparations business plans to obtain valid SEDEX data for supplier evaluation for at least 90% of the fruit volume processed each year.

Regenerative agriculture in fruit farming

In the 2020|21 financial year, the fruit preparations business launched a project on regenerative agriculture focusing on the cultivation of fruits for which there is a lack of globally recognised specifications for regenerative production to date. Regenerative agriculture, among its other benefits, serves to fix carbon dioxide in the soil by building up humus, thus improving soil health and increasing biodiversity. With the support of external experts, AGRANA has developed sets of guidelines for implementing regenerative agriculture for ground crops (such as strawberries), bush crops (for example, blueberries and raspberries) and tree crops (e.g., peaches).

These guides identified 14 practices that represent regenerative methods in fruit production. The resulting, largely positive effects on soil health, biodiversity and water use were elaborated and indicators developed to measure these effects. In addition, implementation plans and measurability schedules for the various measures in the three fruit categories were developed and aspects of geographic transferability to different regions or countries were addressed. The first pilot projects to put these guidelines into practice are planned for the 2021|22 financial year.

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 via collection points from dealers. This is a consequence of legacy regional structures evolved 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, not least in order to be able to improve sustainability aspects together with the growers. Since 2018|19, AUSTRIA JUICE is a member of the Sustainable Juice Covenant, a global initiative aimed at making the procurement, production and marketing of fruit- and vegetablebased juices, purees and concentrates 100% sustainable by the year 2030.

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% 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. A further project with contract growers was begun in Poland in 2007. In the 2020|21 financial year about 14% (prior year: 8%) of all apples processed by AUSTRIA JUICE into apple juice concentrate worldwide came from these two projects.

Average energy consumption (Scope 1+2) in processing operations at AGRANA's fruit plants1 In gigajoules (GJ) per tonne of core and by-products

Average specific indirect energy consumption (Scope 2) Average specific direct energy consumption

(Scope 1)

Average emissions (Scope 1+2) from processing operations at AGRANA's fruit plants1 In kg of CO2 per tonne of core and by-products

  • 1 See GRI reporting boundaries, page 42.
  • 2 Percentage change based on average specific energy consumption (Scope 1+2) per tonne of core and by-products.
  • 3 Percentage change based on average specific emissions (Scope 1+2) per tonne of core and by-products.

In contract crop production, for the documenting of sustainable environmental and social criteria at its suppliers' operations, AUSTRIA JUICE uses the FSA questionnaire provided by the SAI Platform (for details, see from page 43). In the 2020|21 financial year, Hungarian suppliers of disease- and pest-resistant apple varieties, who were selected according to SAI Platform standards, again participated in the mandatory completion of the FSA questionnaire and the external audits. In 2020|21, for the first time, Hungarian contract suppliers of sour cherries, elderberries and carrots also completed the FSA questionnaire and were externally audited on the basis of it. As a result, AUSTRIA JUICE is entitled to claim SAI Silver (and in some cases Gold) status for three years for Hungarian growers for all raw material categories named above. In the 2018|19 financial year, the FSA questionnaire and external verification were also used for the contract growers of resistant apple varieties in Poland. Based on the results, AUSTRIA JUICE has been able to advertise at least FSA Silver level for all Polish contract growers of resistant varieties. Under the three-year FSA verification cycle, Polish growers producing resistant apple varieties and other direct suppliers of apples and various berries will participate in re-verification audits in 2021.

As well, FSA Silver equivalence can be claimed under the benchmarking of the FSA requirements against the national legislation of, for example, Poland, Spain and Hungary, when combined with a certification to the Global GAP standard. In total, following the calculation methodology of the Sustainable Juice Covenant and based on the respective juice concentration standards of the European Fruit Juice Association (AIJN), AUSTRIA JUICE is thus able to claim at least FSA Silver level for about 27% (prior year: 15.5%) of its raw material processing volume.

Environmental and energy aspects of AGRANA's production

Energy consumption and emissions in processing The average specific total direct energy consumption per tonne of product (both core and by-products) in the Fruit segment declined by about 2.5% in the year under review compared to the prior year (see chart on page 62). While the specific total energy consumption in the fruit preparations business remained constant, the fruit juice concentrate business was able to reduce its total energy consumption per tonne of product output by 5.3%.

The average specific emissions (Scope 1+2) per tonne of product (core and by-products) in the Fruit segment were reduced by about 1.7% compared to the prior year (see chart on page 62). A slight increase on the fruit preparations side was more than offset in the fruit juice concentrate activities through energy efficiency measures.

To help achieve the Group-wide AGRANA climate goal of decarbonising the production activities by 2040 (for details, see from page 45), the fruit preparations business plans to reduce its emissions (Scope 1+2) by about 4% in absolute numbers by 2025|26 compared to 2019|20 levels. The fruit juice concentrate business will lower its emissions (Scope 1+2) by about 29% in absolute terms by 2025|26 from 2019|20 levels.

Water consumption in processing operations at AGRANA's fruit plants

Receiving waters for the wastewater

within the GRI reporting boundaries (see page 42)

Fruit segment 2020 21 2019 20 2018 19
In m³ per tonne
of core and by-products
Water withdrawal 4.70 4.72 4.29
Water discharge 4.37 4.67 4.16
Water consumption 0.33 0.05 0.13

Water withdrawal at AGRANA's fruit plants in 2020|21 by source1

The average specific water consumption in the Fruit segment in the year under review was 0.33 cubic metres (330 litres) of water per tonne of product output. The risk analysis performed for the AGRANA sites in 2019|20 regarding water withdrawal and discharge, using the WWF Water Risk Filter and the Aqueduct Water Risk Atlas (for details, see from page 45), identified potentially high water risk at eight sites of the fruit preparations business and three sites of the fruit juice concentrate operations. In the fruit juice concentrate activities there are currently no actual operational risks affecting or caused by AUSTRIA JUICE GmbH, as the production of apple juice concentrate releases the water bound in the fruit and thus improves local water availability. While here too, growing customer requirements for greater flexibility and smaller production and filling batches have an unfavourable effect on water consumption due to an increased need for cleaning, and the water withdrawal targets for 2020|21 therefore could not be achieved, fruit juice concentrate plants are valued in all municipalities for their water discharge.

In the fruit preparations area, the picture is more diverse due to the international nature of the business and the less stringent regulatory environments compared to Europe. Although none of the AGRANA fruit preparation sites considered to be high-risk locations according to the international risk assessment criteria are currently actually affected by water risks or cause such risks for other local water users, a water management programme for all AGRANA fruit preparation facilities was launched in 2019|20 in order to raise awareness at each site, build a meaningful database, and set water consumption targets where appropriate.

Waste from processing operations

at AGRANA's fruit plants

within the GRI reporting boundaries (see page 42)
--------------------------------------------------- -- -- -- --
Fruit segment 2020 21 2019 201 2018 191
Waste disposed 30,061 t 30,272 t 35,810 t
Of which hazardous waste 258 t 268 t 343 t
Waste
per tonne of product 34.5 kg 34.1 kg 37.8 kg
Hazardous waste
per tonne of product 296 g 302 g 362 g

In the Fruit segment, the absolute and specific quantities of waste per tonne of product output remained almost constant. Specific hazardous waste per tonne of product fell by about 2% in the Fruit segment compared to the prior year.

EcoVadis

In the 2020|21 financial year, AUSTRIA JUICE GmbH updated its sustainability data for the purposes of EcoVadis, the international supplier evaluation platform. It again received Gold recognition.

Investment

Capital expenditure in the Fruit segment in 2020|21 amounted to € 34.2 million (prior year: € 56.5 million). The various capex projects across all 41 production sites related primarily to new production lines and continual improvements, as well as asset replacement and maintenance investment. The following individual investments were carried out, among others:

  • █ Effluent treatment in Jacona, Mexico
  • █ Expansion of the warehouse for finished product in Chung-Buk, South Korea
  • █ New production line in Lysander, New York, USA
  • █ New production line in Central Mangrove, Australia

Share of Group investment in 2020|21

Starch segment

Basics of the Starch segment

Marketing relationship B2B

Products

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

Raw materials

processed Corn (maize), wheat, potatoes

Key markets

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

Customers

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

Special strengths

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 based in Chicago, Illinois, USA, also manages and coordinates the joint ventures of the HUNGRANA group (one plant in Hungary, where starch products, saccharification products and bioethanol are manufactured). The joint ventures are included in the consolidated financial statements using the equity method of accounting.

Financial results

Starch segment 2020 21 2019 20 Change
% / pp
Total revenue €000 831,867 816,802 +1.8%
Inter-segment revenue €000 (9,975) (9,805) –1.7%
Revenue €000 821,892 806,997 +1.8%
EBITDA1 €000 92,117 93,885 –1.9%
Operating profit before
exceptional items and results of
equity-accounted joint ventures €000 45,402 58,817 –22.8%
Share of results of
equity-accounted joint ventures €000 19,400 16,341 +18.7%
Operating profit [EBIT] €000 64,802 75,158 –13.8%
EBIT margin % 7.9 9.3 –1.4 pp
Investment2 €000 22,199 73,609 –69.8%
Number of employees (FTE)3 1,149 1,087 5.7%

The Covid-19 pandemic was a key factor affecting the markets served by the Starch segment, as well. A primary objective was to maintain supply chains and production throughout and ensure the deliveries to customers.

In a highly volatile business environment, revenue rose slightly to € 821.9 million. A moderate increase in sales volumes was achieved for the principal products, while weaker demand weighed heavily on prices. Market demand for starches in particular, but also for saccharification products, declined as a result of Covid-19. The Platts quotations for bioethanol averaged € 585 per cubic metre over the year, or about € 35 less than in the year before. Revenue with by-products manufactured in-house increased, due mainly to higher sales volumes of wheat gluten. Revenue from resold animal feedstuffs was down for volume reasons.

Raw material costs rose, largely because the wheat processing volume in Pischelsdorf, Austria, was higher. Raw materials from the 2019 harvest were purchased at long-term average prices. For the 2020 grain crop, prices were at the – expected – level of the prior year until late autumn 2020,

Native and modified starches Saccharification products Alcohol and ethanol

Other core products (dairy and instant products, long-life potato products, etc.) By-products (protein products, DDGS, gluten, etc.)

Others (soy, dried beet pulp, etc.)

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

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

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

but rose significantly from then. Moderately higher staff costs and significantly higher depreciation were primarily attributable to the capacity expansion in Pischelsdorf. Overall, EBITDA of € 92.1 million was achieved in the Starch segment, slightly below the prior-year level. Operating profit before exceptional items and results of equity-accounted joint ventures was € 45.4 million, or 22.8% less than one year earlier.

In 2020|21, revenue of the HUNGRANA group, the joint venture in Hungary, was flat year-on-year at € 287.2 million. For saccharification products, the market environment remained difficult and led to considerable reductions in sales prices and volumes. In the bioethanol business, ethanol quotations declined from the prior year. Positive earnings effects were achieved through exchange rate gains on exports priced in euros. On balance, the HUNGRANA group generated EBIT of € 45.4 million (prior year: € 39.7 million). Its profit after tax was € 38.8 million (prior year: € 32.6 million), of which one-half, or € 19.4 million (prior year: € 16.3 million), was attributable to AGRANA's Starch segment.

At the beginning of the financial year, AGRANA Stärke GmbH acquired the Santa Cruz, California-based company Marroquin Organic International, Inc. This trading company specialising in organic products serves B2B customers and sources much of its product portfolio from AGRANA. The new subsidiary is included in the Group accounts since 1 March 2020, by full consolidation.

Market environment

The Covid-19 pandemic affected almost all served markets for starch products. This included impacts on aspects ranging from the plannability of business, to new product developments, all the way to approvals at new customers and cancellations of sales fairs.

In the food sector, there was a clear shift away from a food service and tourism orientation and towards classic B2C/retail demand. Saccharification products remained under heavy volume and price pressure in the reporting period. Due to the uncertain situation, new impetus for the market was largely absent.

Potato starch prices are under pressure due to an above-average European potato harvest and the resulting high availability.

In the infant formula segment, a number of new customers were acquired in addition to existing business. The launch of a baby formula product in the US market was successful, while sales in Asia were difficult.

In the technical starch business (i.e., non-food starches), sales to the packaging paper industry trended upward. Particularly in the fourth quarter of the financial year, demand increased as a result of growth in online commerce. Demand for graphic paper grades, on the other hand, was down significantly.

The business performance in animal feed was very encouraging. Prices of ActiProt® in particular rose due to the reduced availability of canola meal and sunflower meal. Higher prices were also received for vital wheat gluten and corn gluten.

During the first lockdown from March 2020, the European fuel alcohol market saw consumption fall by more than 40%. As a result, ethanol quotations came under severe pressure and marked an all-time low of € 350 per cubic metre (FOB Rotterdam). In the first quarter of 2020|21, in spite of numerous cancellations and postponements of ethanol purchases by existing customers, volume losses were largely offset by AGRANA's rapid maximisation of sales into the disinfectant sector. After the subsequent loosening of Covid-19 restrictions and the resurgence of private transport from the summer, ethanol demand also rose again significantly. The combination of the increase in required ethanol content of fuel blends in the EU under the Renewable Energy Directive and delayed ethanol imports exacerbated the shortage in Europe and pushed quotations to a historic high of over € 800 per cubic metre in August. From autumn 2020 on, with renewed mobility restrictions, ethanol quotations fell significantly again, settling at around € 500 per cubic metre from December 2020. In the short term, developments going forward are very much linked to the extent and timing of the loosening of restrictions. For the medium term, the recently announced introduction of E10 in the UK in the autumn of 2021 will provide an additional boost to demand.

Raw materials and production

World grain production in the 2020|21 grain marketing year (1 July to 30 June) is estimated by the International Grains Council (IGC) at 2.22 billion tonnes1, which marks an increase from the prior year's level, but is slightly less than the expected consumption. Global wheat production is forecast at 773 million tonnes (prior year: 762 million tonnes), compared to expected consumption of 756 million tonnes. The world's corn production is projected at 1,134 million tonnes (prior year: 1,125 million tonnes), versus expected consumption of 1,163 million tonnes. Total grain stocks at the end of the marketing year are estimated to ease to about 611 million tonnes, a reduction of 6 million tonnes from one year earlier.

Grain futures prices in the first half of the 2020|21 financial year moved sideways. From mid-August to the end of the financial year, prices rose sharply. At the 2020|21 yearend, the prices on the commodity derivatives exchange in Paris (NYSE Euronext Liffe) were € 245 per tonne for wheat (prior year: € 188 per tonne) and € 226 per tonne for corn (prior year: € 166 per tonne).

Potatoes

In the 2020|21 campaign of 189 days (prior year: 161 days), the potato starch plant in Gmünd, Austria, processed about 322,300 tonnes of starch potatoes, a new all-time record for the facility. The processing volume of approximately 25,000 tonnes of food potatoes for the production of long-life potato products was somewhat above the prior-year level.

Corn and wheat

In 2020|21, AGRANA Stärke GmbH processed approximately 666,000 tonnes of corn (prior year: 759,000 tonnes) at the Austrian sites in Aschach and Pischelsdorf. The share of specialty corn (notably waxy corn and organic corn) was about 23%.

Wheat grinding volume at the Pischelsdorf facility for the production of wheat starch and bioethanol was raised to about 804,000 tonnes in 2020|21, an increase of around 38% compared to the year before. Of the 2020 crop, AGRANA secured about 97,000 tonnes of ethanol wheat and ethanol triticale in advance through delivery contracts with growers. As in the prior years, cultivation contracts for ethanol grains were offered for the 2021 crop.

At the HUNGRANA facility in Hungary, a steady total of about 1.0 million tonnes of corn was processed in 2020|21; the amounts for this equity-accounted joint venture are stated at 100% of the respective total. The plant in Romania processed about 72,000 tonnes of corn, a decrease of approximately 5% from the year before.

Engagement in the upstream value chain Supplier environmental and social assessment

AGRANA Starch has grouped its Austrian contract growers of potatoes and specialty corn into two so-called Farm Management Groups (FMGs). Previously, in 2017, the sustainability performance of these groups was externally audited in accordance with FSA requirements for the first time after completion of the Farm Sustainability Assessment (for details, see from page 43). In the 2020|21 financial year the recertification audits were held. One hundred per cent of the farms in the AGRANA Starch FMGs achieved at least FSA Silver level.

In the sourcing of conventional raw materials for the production of wheat starch and bioethanol, AGRANA has been relying for years on certification systems recognised by the European Commission, namely, the International Sustainability and Carbon Certification (ISCC) and the Austrian Agricultural Certification Scheme (AACS). Both the ISCC EU and AACS are accorded Silver level equivalence in the FSA system.

Corn and wheat commodity prices during AGRANA's 2020|21 financial year

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

Sustainability in the Starch segment

Status in the supply chain

SAI FSA audits of contract potato production in Austria confirmed at least FSA Silver status

Environmental targets by 2020|21

Cumulative savings of 91 GWh through efficiency measures in plants (from 2015|16)

Value chain

wsk.agrana.com/ en/starch

Building awareness of good agricultural practice

As BETAEXPO, AGRANA's traditional event for raising awareness of good agricultural practices, had to be cancelled amid the pandemic, activities of this nature in the financial year were limited to small-group physical events and to virtual offerings under the "AGRANA4You" advisory programme for contract growers. Thus, ten field days were held for special target groups such as organic growers, starch potato and starch corn growers as well as ethanol grain growers. These events were tailored to their audiences of about 30 participants each. AGRANA's own magazine for contract farmers, "Agrosugar/Agrostarch", covered topics such as optimising soil cultivation and nutrient supply and best practices for the handling of seed potatoes.

Environmental and energy aspects of AGRANA's production Energy consumption and emissions in processing

The average specific direct energy consumption (Scope 1) per tonne of core and by-products in the Starch segment fell by about 13.0% in the 2020|21 reporting period compared to the prior year. At the same time, average specific indirect energy consumption (Scope 2) changed to a similar degree in the opposite direction, rising by 14.6%. This was due to the increase in external electricity purchases, primarily as a result of the operation of the second wheat starch plant at the Pischelsdorf, Austria, site. On balance, the average specific total energy consumption (Scope 1+2) per tonne of product eased by about 1% year-on-year to 4.44 GJ.

The average specific emissions from direct and indirect energy consumption (Scope 1+2) per tonne of product fell sharply by about 42.7% from the prior year. The reason for this reduction was the strategic decision to procure electricity from renewable sources at all Austrian production sites. This action under AGRANA's climate strategy marked the first step towards decarbonising production activities by 2040 (for details, see from page 45). This switch to green electricity prevented some 149,000 tonnes of CO2 emissions in the Starch segment alone compared with the prior year. In total, the Starch segment will reduce its emissions (Scope 1+2) by about 42% in absolute terms by 2025|26 compared to 2019|20.

In the year under review the three Austrian starch manufacturing sites held a valid ISO 50001 certification.

Average energy consumption (Scope 1+2) in processing operations at AGRANA's starch plants1 In gigajoules (GJ) per tonne of core and by-products

Average specific indirect energy consumption (Scope 2)

Average specific direct energy consumption (Scope 1)

Average emissions (Scope 1+2) from processing operations at AGRANA's starch plants1

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

1 See GRI reporting boundaries, page 42.

2 Percentage change based on average specific energy consumption (Scope 1+2) per tonne of core and by-products.

3 Percentage change based on average specific emissions (Scope 1+2) per tonne of core and by-products.

Water consumption in processing operations

at AGRANA's starch plants

within the GRI reporting boundaries (see page 42)

Starch segment 2020 21 2019 20 2018 19
In m³ per tonne
of core and by-products
Water withdrawal 4.56 4.59 4.86
Water discharge 4.08 4.00 4.22
Water consumption 0.48 0.59 0.64

In keeping with the Group's environmental policy, water use and effluent at the AGRANA starch plants are managed sustainably. Process water in the starch operations is repeatedly recycled and cleaned.

The average specific water consumption per tonne of product output (core and by-products) in the Starch segment during the 2020|21 reporting period was about 0.48 cubic metres (480 litres), a reduction of 18.6% compared to the prior year.

At AGRANA's starch factories, 100% of the wastewater discharged in 2020|21 was released into surface waters (specifically, rivers).

Waste from processing operations

at AGRANA's starch plants

within the GRI reporting boundaries (see page 42)

Starch segment 2020 21 2019 20 2018 19
Waste disposed 30,608 t 27,218 t 28,474 t
Of which hazardous waste 43 t 55 t 52 t
Waste
per tonne of product 19.8 kg 19.2 kg 21.1 kg
Hazardous waste
per tonne of product 28 g 39 g 39 g

The specific amount of waste from processing per tonne of product output in the Starch segment in the 2020|21 financial year, at a total of about 19.8 kilograms, remained in line with the prior years. The hazardous waste portion, included in this amount, was reduced by 28.2% to 28 grams per tonne of product output compared to the year before.

EcoVadis

In the 2020|21 financial year, AGRANA Stärke GmbH updated its sustainability data reported annually for the purposes of EcoVadis, the international supplier evaluation platform, and achieved a Silver rating.

Investment

The Starch segment invested € 22.2 million (prior year: € 73.6 million) during the 2020|21 financial year. The following projects were carried out among others:

  • █ Measures to increase specialty corn processing in Aschach, Austria
  • █ Major overhaul of the spray drying towers in Gmünd, Austria
  • █ Optimisation work at the wheat starch plant in Pischelsdorf, Austria
  • █ Expansion of the starch derivatives plant in Aschach

Share of Group investment in 2020|21

Additionally, € 14.3 million (prior year: € 20.7 million) was invested in 2020|21 in the HUNGRANA companies (amounts for these equity-accounted entities are stated at 100% of the total).

Water withdrawal at AGRANA's starch plants in 2020|21 by source1

1 Within the GRI reporting boundaries (see page 42). 69

Sugar segment

Basics of the Sugar segment

Marketing relationship B2B and B2C

Products

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

Raw materials processed

Sugar beet, and raw sugar from sugar cane

Key markets

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

Customers

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

Special strengths

High product quality standards; product offering tailored to customer needs

Revenue by product group in 2020|21

of INSTANTINA, seed, services, etc.)

AGRANA Sales & Marketing GmbH is the parent company for the Group's Sugar sales activities and at the same time acts as the holding company for the Sugar segment's businesses in Hungary, the Czech Republic, Slovakia, Romania, Bulgaria, and Bosnia and Herzegovina. AGRANA Zucker GmbH functions as the production company of the two Austrian sugar factories. Also assigned to the Sugar segment are INSTANTINA Nahrungsmittel Entwicklungs- und Produktionsgesellschaft m.b.H., Vienna; AGRANA Research & Innovation Center GmbH, Vienna; Österreichische Rübensamenzucht Gesellschaft m.b.H., Vienna; and the Group's holding company, AGRANA Beteiligungs-AG, Vienna. The joint ventures of the AGRANA STUDEN group and Beta Pura GmbH are included in the consolidated financial statements using the equity method of accounting.

Financial results

Sugar segment 2020 21 2019 201 Change
% / pp
Total revenue €000 588,559 536,313 +9.7%
Inter-segment revenue €000 (30,038) (48,035) +37.5%
Revenue €000 558,521 488,278 +14.4%
EBITDA2 €000 5,068 (11,910) +142.6%
Operating (loss) before
exceptional items and results of
equity-accounted joint ventures €000 (25,171) (43,683) +42.4%
Share of results of
equity-accounted joint ventures €000 (1,887) 386 –588.9%
Exceptional items €000 (212) (20,854) +99.0%
Operating (loss) [EBIT] €000 (27,270) (64,151) +57.5%
EBIT margin % (4.9) (13.1) +8.2 pp
Investment3 €000 15,905 19,557 –18.7%
Number of employees (FTE)4 2,003 2,061 –2.8%

The overall sales volume of sugar products grew significantly in 2020|21 compared to the prior year, with differences between the various AGRANA sugar markets. While sales quantities with resellers and industrial customers in Hungary, the Czech Republic and Slovakia were stable year-on-year, sales volumes declined significantly in Austria, particularly in the industrial sector. Sales volumes in Romania and Bulgaria rose significantly relative to the prior year.

Since the beginning of the 2020|21 sugar marketing year, sugar selling prices continued to recover. In sales to resellers, prices were up moderately from the prior financial year, and sales prices for industry were also above the average of the prior year thanks to new contracts with customers.

The earnings improvement was due mainly to higher sugar selling prices and disciplined cost management.

The earnings of the AGRANA-STUDEN group continued to have a positive effect on the Sugar segment's EBIT in 2020|21, although its contribution decreased from € 0.6 million to € 0.2 million. The second sugar joint venture, Beta Pura GmbH, through a deficit, had a negative impact of € 2.1 million (prior year: deficit of € 0.2 million) on the results of equity-accounted joint ventures due to a later production start and a Covid-19-related challenging market environment.

  • 1 The prior-year data have been restated under IAS 8. For details, see the Notes, page 114.
  • 2 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.
  • 3 Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill.
  • 4 Average number of full-time equivalents in the reporting period.

The Sugar segment had a net exceptional items expense of € 0.2 million in 2020|21, versus a net expense of € 20.9 million in the prior year that resulted from a restatement for impairment of goodwill (for details, see the Notes, page 114).

Market environment

World sugar market

In its estimate of 6 January 2021 of the world sugar balance for the end of SMY 2020|21, the analytics firm IHS Markit (formerly F.O. Licht) has projected a production deficit. The forecast calls for production of 180.0 million tonnes (SMY 2019|20: 180.6 million tonnes) and growth in consumption to 183.1 million tonnes (SMY 2019|20: 181.6 million tonnes), implying a decrease in global sugar stocks to 70.2 million tonnes (SMY 2019|20: 73.9 million tonnes) and a deficit of 3.7 million tonnes.

World sugar balance1 2020 21 2019 20 2018 19
Million tonnes, except %
Opening stocks 73.9 79.4 78.6
Production 180.0 180.6 184.5
Consumption (183.1) (181.6) (182.2)
Net exports/imports (0.6) (4.5) (1.5)
Closing stocks 70.2 73.9 79.4
In % of consumption 38.3 40.7 43.6

As a result of the toll taken by the Covid-19 pandemic on market sentiment (with an uncertain consumption outlook), and following the historic drop in oil prices early in the year, world market sugar quotations declined significantly and (although volatility increased) remained at low absolute levels during the first three quarters of the financial year. Thus, in April 2020, a new twelve-year low was reached for raw sugar, at US\$ 203.05 per tonne.

The unattractive prices in the world energy market, combined with a weakening Brazilian real, prompted producers in Brazil to maximise the production of sugar relative to ethanol. This increase in sugar production helped compensate for the effect of poor sugar cane harvests especially in India and Thailand, thus reducing the world sugar deficit in SMY 2019|20.

Towards the end of the reporting period, prices rose significantly despite the lasting pandemic and the expectation of high Indian sugar production in SMY 2020|21. The lower than expected supply of raw sugar on the world market during Brazil's off-season between the country's main harvests, combined with institutional investors assuming a rising price curve, had a positive effect on sugar quotations. The stock-to-use ratio2 based on the January 2021 world sugar balance forecast is expected to fall to 38.3%, below the critical 40% mark. This would bring the stock-to-use ratio down to a level last seen in SMY 2016|17.

At the end of the financial year under review, white sugar quoted at US\$ 455.1 per tonne and raw sugar at US\$ 362.7 per tonne.3 For raw sugar, this was a 3.5-year high.

EU sugar market

The production expectations for the still ongoing SMY 2020|21 are low as a result of the drought-related poorer yields in the large European beet-growing regions. In its April 2021 forecast, the European Commission estimated production at 15.4 million tonnes4 (SMY 2019|20: 17.5 million tonnes). Like the previous two sugar marketing years, SMY 2020|21 is thus set to fall significantly short of the record production of 21.3 million tonnes in SMY 2017|18.

International sugar prices during AGRANA's 2020|21 financial year US\$ per tonne

1 IHS Markit (formerly F.O. Licht), Estimate of the World Sugar Balance, dated 6 January 2021.

2 Ending sugar inventory level in % of consumption.

3 ICE Connect.

4 Including United Kingdom (900,000 tonnes).

As a result of the low production volumes in SMY 2019|20, export quantities in that year were again less than imports and the EU thus remained a net importer. A similar trend is expected for SMY 2020|21, which would leave the EU a net importer of sugar for the third consecutive sugar marketing year.

Since the abolition of the sugar quotas at the end of September 2017, the average sugar prices under the EU price reporting system have declined significantly. By January 2019 the price was only € 312 per tonne. In the 2019 calendar year the price of sugar in the EU recovered steadily, a trend which continued in 2020. A price of € 379 per tonne was reported in December 2020.

Industrial and reseller markets

The 2020|21 financial year brought an overall increase in volume and prices for AGRANA's sugar sales. Notably in the reseller sector (and particularly during the summer), the demand situation was very good in the Central and Eastern European markets, generating much of the volume growth in the Sugar segment. In 2021|22 this positive trend is expected to persist.

During the difficult 2020|21 financial year, AGRANA was able to keep its customers supplied at all times. This has further strengthened customer relationships, reinforcing the positive outlook for sales volumes in the 2021|22 financial year.

EU sugar policy

New regulatory measures in the form of various reporting requirements were adopted through the implementing regulations (EU) 2017/1185 and (EU) 2019/1746. The aim is to improve transparency in the agriculture and food sector in order to enable informed decision-making by economic actors and public authorities and enhance market participants' understanding of market developments.

In 2021, for the first time this creates the need to determine prices at stages of the value chain that lie between the producers of the raw materials and the final consumers. This applies both to food retailers and wholesalers and to food processors.

Free trade agreements

The renegotiated free trade agreement between the EU and Mexico is due to enter into force in spring 2021. The European Commission also plans to finalise the free trade agreements with Australia, New Zealand and Indonesia this calendar year.

For the free trade agreement with the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay), partial implementation is currently expected by the end of 2021 to early 2022. The ratification process in some member states, including Austria, has not yet been completed.

Brexit

On 24 December 2020, the Brexit negotiators for the EU and UK reached an agreement in principle on trade and cooperation. Despite the continued maintenance of zero tariffs in bilateral trade with the UK, the present Trade and Cooperation Agreement does not fully make up for the restrictions and additional costs of leaving the single market and the customs union. It is to be feared that with the implementation of this agreement, many new non-tariff trade barriers as well as time-consuming and costly additional administrative burdens will be created for businesses in the EU and UK.

For the first time, rules of origin will have to be observed in goods trade between the two jurisdictions. Only goods originating in the EU or the UK are duty-free.

Raw materials and production

The area planted to sugar beet by the approximately 5,600 AGRANA contract farmers (prior year: approximately 5,500 farmers) was about 86,000 hectares in the 2020|21 sugar marketing year (prior year: about 82,000 hectares). The planting period, from the beginning of March to the beginning of April 2020, was in line with the long-term average. Extreme drought that lasted until the end of May impeded beet emergence and caused enormous pest pressure from the beet weevil and beet flea beetle, especially in Austria. As a result, about 12,000 hectares of beet (prior year: about 4,000 hectares) had to be turned under in Austria; of this area, 7,900 hectares (prior year: about 2,600 hectares) was not replanted to beet. In the other beet-growing regions, outside Austria, a further, smaller amount of beet production area was lost due to drought, wind erosion and animal pests.

Only the widespread precipitation from the end of May 2020 provided some relief. The weather from the beginning of June to early November was characterised by above-average rainfall. Although the rain was certainly beneficial for growth, its late timing meant that only a below-average density of plants per hectare was maintained. Temperatures in the summer were average; only in Romania were the late summer months marked by severe drought with correspondingly heavy leaf loss. High rainfall in October and November led to difficult conditions and delays in beet harvesting, resulting in considerable crop losses.

Sustainability in the Sugar segment

Status in the supply chain

Use of FSA in all contract beetgrowing regions; for details of results, see from page 73

Environmental targets by 2020|21

Direct energy consumption of 2.49 GJ per tonne of product

Water withdrawal of 1.92 m³ per tonne of product

Value chain wsk.agrana.com/

en/sugar

Owing to the combined effect of a late start to the growing season, above-average rainfall in the second half of the year, a below-average number of hours of sunshine, and (particularly in Austria) Cercospora leaf infestation, the sugar content of the beet was below average at 15.1% (prior year: 16.1%). Around 4.8 million tonnes of sugar beet (prior year: 4.6 million tonnes) were harvested on a total area of about 76,300 hectares (prior year: around 76,200 hectares), corresponding to an average yield of 63.3 tonnes per hectare (prior year: 60.5 tonnes per hectare).

AGRANA's seven beet sugar factories processed a combined daily average of slightly more than 48,500 tonnes of beet during the campaign (prior year: 51,000 tonnes). As a result of the low beet quantity, in a campaign averaging a length of 100 days (prior year: 91 days), the factories produced a total of 653,500 tonnes of conventional sugar (prior year: 655,000 tonnes). Additionally, at the plant in Tulln, Austria, about 5,000 tonnes of organic sugar was produced in the separate organic campaign. As a result of the volume of beet processed, the average capacity utilisation of the sugar factories was 83% (prior year: 76%).

As planned, the molasses desugarisation facility in Tulln, Austria, produced liquid betaine in the reporting period, which since August 2020 finds additional use as a raw material in the new betaine crystallisation plant.

AGRANA also operates two raw sugar refineries, which in the 2020|21 financial year produced a total of 128,500 tonnes of white sugar (prior year: 220,000 tonnes).

For beet purchasing, AGRANA follows a beet price arrangement with a variable price schedule tied to the sugar sales price. However, to boost the competitiveness of sugar beet as a crop-growing choice for farmers, a minimum price was established. Since 2020, multi-year contracts have been in place with the beet farmers in all AGRANA sugar-producing countries. Three-year contracts were concluded in Austria, and two-year contracts in all other countries. In addition, farmers are offered the choice of a one-year contract.

Continuing operation of the sugar plant in Leopoldsdorf, Austria

On 27 November 2020, the Supervisory Board of AGRANA Beteiligungs-AG approved the continuing operation in 2021 of the sugar factory at the site in Leopoldsdorf, Austria, as the stipulated requirement of contracting at least 38,000 hectares of beet planting area in Austria for the 2021 campaign was met by the middle of November 2020.

Engagement in the upstream value chain

Supplier environmental and social assessment

The Sugar segment has selected the Farm Sustainability Assessment (FSA) of the Sustainable Agriculture Initiative Platform (SAI) for use in documenting sustainable management by its sugar beet contract growers (for details on the SAI and FSA, see from page 43). In the Sugar segment, the contract beet suppliers in all five beet production countries have been grouped into so-called Farm Management Groups (FMGs). In 2017, these groups' sustainability performance had been externally audited in accordance with FSA requirements for the first time, and the re-verification audits took place in 2020. In the groups in Austria and the Czech Republic, 100% of the farms achieved at least FSA Silver status.

In Romania, Slovakia and Hungary, the audits could not be completed due to travel and contact restrictions amid the Covid-19 pandemic, and the certificates valid since 2017 were therefore extended by one year. At their initial audit, all Slovakian farms already achieved at least FSA Silver status; in Hungary it was 96% of farms and in Romania, 31%.

Building awareness of good agricultural practice

Due to the pandemic, BETAEXPO, AGRANA's traditional event for raising awareness of good agricultural practices, had to be cancelled. Activities in this area last year generally had to be limited to events held in small groups and to virtual offerings under the "AGRANA4You" advisory programme. For example, 33 webinars were offered for beet growers, focusing on the subjects of planting, seed, and crop protection for the 2021 season. The virtual channel for discussing plant cultivation topics and trial results, taking the place of the usual physical field visits, was a new experience both for the AGRANA crop consultants and the participants in the 24 digital field visits.

Given the physical distancing requirements, an online contracting option was offered for the first time. Of course, at 196 contract drop-off events held physically under strict hygiene and distancing rules, prospective growers were also able to do their contracting in person. In total,

besides the existing growers, the operators of 273 additional farms were persuaded of the attractiveness of sugar beet cultivation and will start growing beet in 2021.

Biodiversity in the supply chain

In 2020, about 3,700 hectares were greened in Austria with catch-crop mixes from Österreichische Rübensamenzucht GmbH, a not-for-profit subsidiary of AGRANA Zucker GmbH that provides farmers with GMO-free seed, largely from its own in-house propagation. The catch-crops loosen the soil structure, mobilise nutrients, activate soil fauna and improve 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.

Transport

Depending on the calculation method and country, transport represents 5% to 10% of the carbon footprint of sugar products. AGRANA therefore strives to make transport as sustainable as infrastructure and economics will allow. In total across all production countries in the 2020|21 processing season, about 32% of the beet was delivered to the sugar factories by rail, with the proportion highest in Austria at around 52% and Hungary at approximately 49%.

Average energy consumption (Scope 1+2) in processing operations at AGRANA's sugar plants1 In gigajoules (GJ) per tonne of core and by-products

Average specific indirect energy consumption (Scope 2)

Average specific direct energy consumption (Scope 1)

Average emissions (Scope 1+2) from processing operations at AGRANA's sugar plants1

2 Percentage change based on average specific energy consumption (Scope 1+2) per tonne of core and by-products.

3 Percentage change based on average specific emissions (Scope 1+2) per tonne of core and by-products.

Environmental and energy aspects of AGRANA's production

Energy consumption and emissions in processing By harvest time in the 2020|21 financial year, despite a difficult start to the growing season due to drought and pest infestation experienced especially in eastern Austria, the Sugar segment was able to compensate for area losses thanks to eventual high rainfall that led to very good yields per hectare. In the end, about 3.7% more beet was processed than in the prior year. This played a key role in achieving the required capacity utilisation of the two sugar factories in Austria. Meanwhile, raw sugar refining volume at the refining sites in the GRI reporting boundaries (see page 42) was about 61.6% below the prior-year level.

The Sugar segment was able to reduce its average specific direct energy consumption (Scope 1) per tonne of core and by-products by about 5.7% compared to the prior year.

Average specific indirect energy consumption (Scope 2) per tonne of product was also lowered, by about 2.4% from one year earlier. The average specific total energy consumption (Scope 1+2) of about 2.84 GJ per tonne of product output was approximately 5.3% less than in the year before.

These reductions were also reflected in the average specific emissions from direct and indirect energy consumption (Scope 1+2) per tonne of product, which fell by about 5.1% from the prior year (see chart on page 74).

The Kaposvár sugar plant in Hungary generated about 19.3 million cubic metres of biogas from beet pulp in the 2020|21 financial year. This would have been sufficient to cover approximately 69% of the site's primary energy requirement for the 2020|21 beet campaign. This type of complete utilisation of low-protein raw material components for energy capture also represents a pilot project

for AGRANA's future decarbonisation options as part of its climate strategy up to 2040 (for details, see from page 45). In 2020|21, about 10.3 million cubic metres of the biogas produced at the facility was sold, and most of this was refined by the biogas upgrading plant (installed in autumn 2015) into biomethane for feeding into the local natural gas grid. The biomethane injected into the grid was equivalent to the annual heating requirement of about 2,070 single-family homes. In the future, the in-house utilisation of all the biogas produced here would be conceivable.

By 2025|26, the Sugar segment plans to reduce its emissions (Scope 1+2) by about 12% in absolute terms compared to 2019|20, thus supporting AGRANA's climate strategy (for details, see from page 45).

In 2020|21 the energy management systems of all production sites of the Sugar segment within the GRI reporting boundaries (see page 42) held a current certification under ISO 50001.

Water consumption in processing operations at AGRANA's sugar plants

within the GRI reporting boundaries (see page 42)

Sugar segment 2020 21 2019 20 2018 19
In m³ per tonne
of core and by-products
Water withdrawal 2.49 2.45 2.33
Water discharge 3.77 3.45 3.64
Water consumption (1.28) (1.00) (1.31)

Some of the water required by a sugar factory enters the facility in bound form in the beet itself and is thus obtained from the raw material and then used in processing.

Surface water (primarily rivers) 81% Municipal water supply 2% Groundwater 17% Municipal sewer 6% of AGRANA's sugar plants in 2020|211

Water withdrawal at AGRANA's sugar plants in 2020|21 by source1

Surface water (primarily rivers, lakes) 94%

Receiving waters for the wastewater

Sugar beet consists of about 75% water, which must be separated from the sugar during the manufacturing process. This water is used in multiple ways: for leaching the sugar from the beet cossettes, for the necessary process steam in sugar extraction, and for transporting and cleaning the beets. 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. Only cleaned wastewater satisfying the applicable environmental standards is thus discharged into the receiving waters.

Per tonne of product output in the 2020|21 financial year, the Sugar segment produced about 1.28 cubic metres (1,280 litres) of water previously bound in the beet, therefore showing a negative water consumption balance.

Waste from processing operations

at AGRANA's sugar plants

within the GRI reporting boundaries (see page 42)

Sugar segment 2020 21 2019 201 2018 19
Waste disposed 34,728 t 38,610 t 43,630 t
Of which hazardous waste 137 t 312 t 189 t
Waste
per tonne of product 19.3 kg 20.8 kg 23.3 kg
Hazardous waste
per tonne of product 76 g 168 g 101 g

The absolute and specific amounts of waste declined by about 10.1% and 7.2% year-on-year, respectively.

EcoVadis

In the 2020|21 financial year, AGRANA Zucker GmbH again updated its sustainability data reported annually since 2014 for the purposes of EcoVadis, the international supplier evaluation platform. Despite an improvement in the absolute number of points achieved, a change in the basis of assessment resulted in a Silver rating for AGRANA Zucker GmbH (prior year: Gold rating).

Investment

In the Sugar segment, AGRANA had capital expenditure of € 15.9 million in the 2020|21 financial year (prior year: € 19.6 million), including investments in product quality and energy efficiency. As one of the projects involved, the energy supply of the Sered', Slovakia, site was converted to natural gas.

Additionally in 2020|21, € 15.1 million (prior year: € 26.4 million) was invested in the equity-accounted joint ventures (the AGRANA-STUDEN group and Beta Pura GmbH; values for these entities are stated at 100% of the total). The largest capital expenditure project was the betaine crystallisation plant of Beta Pura GmbH. Overall in the past two financial years, together with the US partner The Amalgamated Sugar Company LLC of Boise, Idaho, about € 37 million was invested at the site in Tulln, Austria, in the value-added processing of by-products from sugar production. Due to the Covid-19 pandemic, production started with a slight delay, in August 2020. The plant's operation was ramped up over the past number of months and the processes are continually being optimised.

Research and development

Operating in a highly competitive marketplace, it is crucially important for AGRANA to identify market trends early, 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 Fruit, Starch and Sugar businesses. It works together with AGRANA's 17 local New Product Development 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, agriculture, food technology, starch technology, microbiology, biotechnology and fruit preparations development.

The collaboration of R&D specialists from the different segments (Fruit, Starch and Sugar) under one roof not only drives administrative synergies but, above all, promotes a creative exchange between different research groups and disciplines, particularly on subjects that cut across segment boundaries. The complementarity between the different groups' experience is particularly valuable in crosssegment areas of research, such as technologies, thickening and sweetening solutions, aromas, microbiology, product quality and safety, and organic products.

Research and development 2020 21 2019 20
R&D expenditure (internal and external) €m 18.4 18.9
R&D-to-sales ratio1 % 0.72 0.76
Number of employees in R&D (headcount) 270 266

Fruit segment

Technology

To inactivate certain microorganisms in fruit preparations, heat pasteurisation is not sufficient. Concepts for suppressing the growth of heat-resistant mould species, for instance, were developed and tested in various simulations.

The market wants products with an ever longer minimum shelf life as well as storability at ambient temperature, in order to avoid the complications and cost of cold chain logistics. To address this trend, AGRANA carried out a comprehensive study on the effects of time and temperature on quality parameters such as microbiology, colour, taste and micronutrients of fruit preparations. The study provides the knowledge base for the development of an expanded product line that does not require refrigerated logistics.

The development of innovative products is also important in the food sector. One way in which the Group is addressing this is with the development of fruit preparations that are suitable for use in 3D printers.

In a number of products, customers request the addition of chocolate pieces. However, not all national markets served by AGRANA allow chocolate to be imported. To nonetheless ensure that customers have access to chocolate pieces, a simple process was developed that allows them to be produced locally in each country.

1 R&D expenditure as a share of Group revenue. 77

Product development

The use of so-called brown sauces plays an important role in the bakery and ice cream industries, with chocolate, caramel and coffee being the most popular flavours. Developments related to viscosity and rheology are crucial for the successful use of such products in these industries.

An essential step in the development of new products is their sensory evaluation. This includes the assessment of smell, appearance, taste and mouthfeel. Tastings are conducted by an in-house sensory panel of tasters, who must first be sensitised to individual flavours by training.

Fruit juice concentrates

Strategic investments, both in infrastructure and personnel, were made in the areas of beverage bases, aromas and the production of fruit-juice and vegetable-juice concentrates. The in-house production of composite aromas continued to be developed further and was systematically expanded in order to build up the growth segment of beverage bases and the aroma business.

New refined manufacturing processes for aromas enable the production of plant extracts and of citrus aromas suitable for beverages.

For the aroma innovations, foundations were laid for tapping other applications outside the beverage space.

In analytics, using statistical procedures, new methods were established in order to make quality control more efficient and targeted.

Starch segment

Raw materials

As a result of the steadily growing share of specialty starches in total starch production, new varieties of corn (maize) and wheat as well as innovative starch raw materials represent a separate area of research. Due to the growing market for waxy corn starch, new waxy corn varieties appear on the market every year, and their processability is tested before they are processed at production scale. This is to ensure the problem-free extraction and refining of the starch.

Research involving wheat varieties with a high amylopectin content led to successful first-time production at the wheat starch factory in Pischelsdorf, Austria. Extensive studies in food applications show this raw material to be a promising and attractive starch innovation.

Food applications

The development of new application concepts and recipes for food starches enables rapid responses to current trends in the food industry and the market. These trends include increased demand for meat-free or vegan foods, clean label offerings, and products high in fibre or reduced in fat and sugar. In order to be able to offer appropriate concepts to address this demand, intensive research was conducted into innovative product solutions based on new technologies or raw materials.

Work was also devoted to novel packaging concepts. By using a new packaging technology, AGRANA was able to significantly extend the storage life of sensitive food products, such as baby foods, without any deviation in quality. This is intended to open up new markets which previously could not be supplied due to long transport routes and insufficient shelf life.

New products and technologies

In collaboration with the manufacturing operations, an alternative, sustainable purification process specifically for biological starch degradation products was developed through process adaptations; it has advantages over the existing production process. In addition, new technologies are being evaluated for their suitability as certifiable organic manufacturing processes. These process advances ensure that the ever more stringent organic quality requirements in the EU can continue to be met in the future.

Another contribution to quality assurance is the development of a method for maintaining the quality of organic potato fibre in order to satisfy the high quality requirements of the organic and conventional food market. Preliminary studies to set the direction of work for the development of new protein sources round out the portfolio of R&D priorities in biotechnology.

The rising demand for plant proteins and plant-based food products for the vegetarian and vegan market are leading to the intensification of efforts in this research area. Here, proteins from by-products of starch production are tested for their potential in feed and food applications, and a resource-saving manufacturing process is pursued.

Non-food applications

In R&D for the broad range of technical (i.e., non-food) applications, the development of resource-conserving and efficient processes as well as research on innovative, sustainable starch products are the main priorities.

By modifying the manufacturing process, the development team succeeded in making available highly degraded pregelatinized starches with a significantly reduced carbon footprint, thus rendering the process not only more economical but also much more eco-friendly. The starch products are characterised especially by very good solubility and excellent stability. In parallel with this, there is a growing trend towards eco-labels, which require a significant reduction in VOC1 emissions. In response to this trend, innovations were developed in the area of highly modified starch derivatives that are ideally suited to serve this specific market.

Due to economic conditions and the resulting cost pressure, it had become necessary to offer alternative products on the market through more efficient process management and the reduction of raw material costs. Thus, new products based on wheat starch as a raw material have led to the creation of new product groups that have been successfully adopted for use in various technical applications.

The trend towards home-compostable bioplastics is steadily rising and continues to be a focus of research and development for starch-based product solutions. For this reason, a compounder was added to the R&D equipment pool in order to enable the more rapid development of tailor-made solutions. As a result, the product range of compounds was expanded by increasing the starch content and thus the biobased carbon content; this also made process management more cost-effective and hence more economical. The TÜV certification for home compostability of the products developed was successfully completed.

Sugar segment

Raw materials/agriculture

Extensive work continued to be carried out on population control of the beet weevil, pursuing mechanical, biological and insecticidal approaches in sugar beet fields.

The development of alternatives to the use of neonicotinoids, which in several growing regions are not an available option, is a necessity for the successful protection of sugar beet against the beet flea beetle, beet weevil, black bean aphid and green peach aphid. The aphid species are regarded as carriers of various yellowing viruses, which can cause significant yield reductions. Comprehensive monitoring of the occurrence of these pests formed the basis for the establishment and expansion of warning services that allow timely control measures to be taken.

Reliable control of leaf spot (Cercospora) on sugar beet using available systemic and contact fungicides continues to have limitations. The focus was therefore increasingly on testing operationally usable seed that genetically has greater tolerance or resistance to this fungal pathogen.

Situations where there is a lack of available water call for a rethinking of tillage concepts. Tillage methods were studied in interaction with the factors of soil cover, fertilising, variety selection and irrigation, in order to ensure economical use of water as a limited resource.

Special attention continued to be paid to the issue of soil fertility and soil health. In addition to the targeted measurement of nutrient supply – with particular emphasis on the supply of phosphorus to the sugar beet – research projects were devoted to the detection of low-molecular-weight organic compounds through soil analysis using the electro-ultrafiltration method.

Technology

The quality of some of the sugar beet received for processing at AGRANA's factories is impaired due to climatic influences such as drought and heat, as well as by beet diseases. This requires constant optimisation of production processes and of the use of additives.

In order to meet the resulting growing need for cost-efficient process monitoring and control in the area of juice purification, devices developed at ARIC that had already proven themselves individually in factory use were completely redesigned as compact, mobile online measurement systems. These now combine several functions and can be quickly and easily employed throughout the Sugar segment.

In addition to juice purification, one focus of process optimisation in the sugar factories is increasingly on making improvements within the sugar crystallisation stage in order to achieve a higher sugar yield at lower molasses purity and thus also reduce energy consumption. Consistently high sugar quality is also an important success factor in the market. The quality of the sugar produced in the factories, both in terms of physicochemical and microbiological parameters, is assured by various methods, such as monitoring programmes. Importantly, the analytics themselves are validated by means of cross-checks and annual inter-laboratory proficiency tests between ARIC and the sugar plants' production laboratories.

A significant part of ARIC's role is knowledge management regarding sugar technology. This expertise is shared internally through training, technology talks and best-practice meetings.

Product development

In order to satisfy the high quality standards of AGRANA's sugar end products, the intermediate products used as inputs are continually adapted and recipes optimised to ensure consumer satisfaction. In the case of gelling sugar products, for example, adjustments were made to achieve cost-efficiencies in production.

By-products

Prompted by the debate in the EU on guidelines for the content of nitrate and nitrite in animal feed raw materials produced by the sugar industry, a project with external funding support was launched in cooperation with Vienna's University of Natural Resources and Applied Life Sciences In this project, factory-specific strategies are being established to ensure the production of molasses with low nitrate and nitrite content.

Betaine crystallisation

Under the diversification strategy for the extraction and marketing of crystalline betaine at AGRANA, there is close collaboration with Beta Pura GmbH. This relates both to analytical process control and to product development matters regarding crystalline betaine and the utilisation of by-products that arise in the course of betaine crystallisation.

Workplace safety at AGRANA

Fruit segment – 2020|21 targets Fruit preparations business

Reduction of injury rate1 and lost day rate1 not achieved

Fruit juice con-

centrate business Reduction of number of accidents1 achieved

Starch segment – 2020|21 targets Measures

implemented

Injury rate1 reduced from prior year, but target not achieved

Sugar segment – 2020|21 targets Measures implemented

Reduction of injury rate1 and lost day rate1 not achieved

In the 2020|21 financial year the AGRANA Group employed an average total of 8,920 people (by headcount; prior year: 9,300). Of this total, 2,519 worked in Austria (prior year: 2,456) and 6,401 were employed in other countries (prior year: 6,844).

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

Average number
of employees
(headcount)
Average number
of FTE²
Number of employees
(headcount) at
balance sheet date
28 Feb 29 Feb
Segment 2020 21 2019 20 2020 21 2019 20 2021 2020
Fruit 5,703 6,098 5,695 6,194 5,215 6,290
Starch 1,178 1,112 1,149 1,087 1,164 1,134
Sugar 2,039 2,090 2,003 2,061 1,810 1,965
Group 8,920 9,300 8,847 9,342 8,189 9,389

In the 2020|21 financial year the AGRANA Group employed an average of 8,847 full-time equivalents (prior year: 9,342). The reduction in the Fruit segment was due mainly to a lower need for temporary employees as a result of lower harvest volumes and shifts in seasonal production. The number of employees in the Starch segment rose primarily because of hiring for the wheat starch plant and the acquisition of the US company Marroquin Organic International, Inc. The Sugar segment saw a cost-related reduction in the number of employees.

The average age of permanent employees3 on 28 February 2021 was 42 years (for details on the age structure, see the GRI content index, annual report 2020|21 from page 196). Of the permanent employees, 29.5% (prior year: 30.0%) were women, and 66.2% of salaried staff held an academic degree (prior year: 58.1%). The turnover rate4 for permanent staff in 2020|21 was 14.9% (prior year: 14.2%). The proportion of employees with a part-time contract5 was 3.7%. The share of temporary agency staff6 was 5.2%.

Human resources management

AGRANA's human resources strategy follows and promotes the principles of sustainability and entrepreneurial thinking and action. Mutual respect, appreciation and social consciousness are an

AGRANA employees within the GRI reporting boundaries7

at the balance sheet date of 28 February 20218

Non-permanent
staff9
Permanent staff Managers10 Of whom
executive
leadership11
Blue White
Segment Total Female collar Female collar Female Total Female Total Female Total Female
Fruit 1,134 56.3% 2,511 22.7% 1,570 46.9% 4,081 32.0% 302 26.8% 9 0.0%
Starch 48 27.1% 730 12.2% 386 45.9% 1,116 23.8% 77 20.8% 3 33.3%
Sugar12 123 34.1% 970 17.7% 717 39.9% 1,687 27.1% 155 28.4% 16 18.8%
Group 1,305 53.1% 4,211 19.7% 2,673 44.9% 6,884 29.5% 534 26.4% 28 14.3%

1 See definition on page 84.

2 Full-time equivalents.

3 Permanent employees of AGRANA Group companies.

4 Staff turnover rate = total number of departures of permanent AGRANA employees reported in the financial year ÷

average number (headcount) of permanent AGRANA employees.

5 Proportion of the total workforce at 28 February 2021, by headcount.

6 Proportion of the average total workforce for the financial year, by headcount.

7 See GRI reporting boundaries, page 42.

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

10 Management positions at reporting levels 2 and 3.

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

level 1 also includes the regional managing directors of the three segments). 12 The staff of AGRANA Beteiligungs-AG is counted under the Sugar segment.

8 For prior-year values, see GRI content index, annual report 2020|21 from page 196.

indispensable part of the corporate culture at AGRANA, as a global company whose internal and external environment worldwide is marked by great cultural diversity.

With operations in more than 13 time zones, 20 different languages, and a workforce that spans generations and a wide variety of nationalities and perspectives, diversity is an inseparable aspect of AGRANA's working life. As the Group aims to expand and further strengthen the preservation and promotion of this diversity among its now approximately 9,000 employees and their equitable participation in the company, diversity and inclusion are part and parcel of its fundamental principles. With its Diversity & Inclusion Initiative, AGRANA is committed to a diverse and inclusive corporate culture for its employees worldwide and contributes daily to creating a work environment that is free of unfair restriction and of discrimination.

Motivation, integrity and collaboration round out the set of values fostered by AGRANA's human resources strategy. AGRANA strives to develop the potential of its employees and to continuously improve their knowledge. The long-term development of all staff helps to secure AGRANA's competitiveness in the marketplace.

In 2020|21, the functionalities of the global human resources management system were further expanded; as a result, the majority of its modules are now successfully implemented. The purpose of the HR management system is to improve the efficiency of personnel processes, support quality assurance, create transparency and increase data security. In the coming years, the focus will be on gradually further developing the functionalities of this system and adapting it to the constantly changing requirements.

Variable compensation

The incentivising and recognition of performance is a major element of the personnel strategy and a significant factor in the Group's success. To help achieve the company's strategic and operational objectives, a Group-wide 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 reward outstanding individual performance. In the 2020|21 financial year, 10.8% of all employees (prior year: 8.8%) were covered by this incentive-enhanced compensation system.

AGRANA HR team receives multiple awards

In 2020|21, for the second year in succession, AGRANA Beteiligungs-AG took first place in the BEST RECRUITERS study's Austrian industry ranking of food and consumer goods manufacturers and was thus awarded the 2020/21 GOLD BEST RECRUITERS mark, as last year.

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 200 scientific criteria in assessing recruiting presence, job advertisements and the treatment of applicants.

The renewed awarding of the GOLD BEST RECRUITERS mark is testament to the great importance which AGRANA attaches to the appreciative and friendly treatment of potential new employees. AGRANA sees this recognition as an affirmation of its efforts to continually raise the quality standards it applies to the process of searching for new talent, and takes it as motivation to follow promising new recruiting trends.

The subsidiary Moravskoslezské Cukrovary A.S. in the Czech Republic was recognised in 2020|21 with third place in "Employer of the Year 2020" awards in the South Moravia region.

Staff development and training

Developing and fostering the potential of its employees is highly important to AGRANA. Through many job skills trainings, language courses, personal development offerings as well as intensive AGRANA-wide programmes, the Group promotes the continual expansion and transfer of its employees' knowledge and abilities. These staff development measures not only strengthen the Group's competitiveness but also help raise employee motivation and engagement. AGRANA also offers onboarding programmes and welcome days on an on-going basis to give new staff a big-picture introduction to the Group as a whole and an overview of their own area of activity.

The top training and development priorities in 2020|21 were the development of new managers and technical experts in some selected functional areas, and the expansion of the digital learning offering.

In 2020|21 the Group trained an average of 101 apprentices (of whom 23% were female). An average of 72 apprentices were employed in Austria (11% of them female), and a combined average of 21 apprentices (48% of them female) in Germany, France, Algeria and Brazil, which have a dual education system similar to Austria's, i.e., combining apprenticeship and vocational school. In other educational systems, eight apprentices were trained in Mexico and

Morocco (62.5% of them female). The training was provided in areas such as electrical engineering technology, metalworking technology, lab technology (chemistry), chemical engineering technology, food technology, mechatronics, industrial sales and marketing communications.

In order to increase the attractiveness of apprenticeship professions and to introduce pupils to career opportunities in technical occupations, information brochures for apprentices were created at individual locations. As well, Group sites participated (largely virtually in 2020|21) in events to introduce apprenticeship vocations. Apprentices were also offered workshops and training courses in various subject areas. Further, the online presence on social media was stepped up.

In the 2020|21 financial year, 14 Group employees and managers (of whom four were female) participated in the Advance@AGRANA training programme for operational junior management, successfully completing it in February 2021. The Advance@AGRANA programme is designed for individuals seen as having high potential, excellent performance and exceptional motivation. In addition to course content on leadership, communication, financial management, project management, continuous improvement processes, presentation and argumentation, and conflict and stakeholder management, the participants worked

intensively on practice-oriented AGRANA projects, supervised by project sponsors from within the company. At the same time, the participants were supported by internal mentors in order to take advantage of the opportunity to network even more closely within the AGRANA Group and to have conversations on a regular basis. Flexibility was an important feature of this programme. After a successful face-to-face start, the format was digitalised due to Covid-19, which also meant that good communication and coordination became even more important. The participants eventually completed 90% of the modules in a virtual format, something that would have been unimaginable at the time of the kick-off event. The final presentation was safely held in a hybrid event after successful negative tests for Covid-19. The respective project team and the management team were on site in the meeting room and about 35 other stakeholders were connected virtually.

A further focus in the 2020|21 financial year was on the digitalisation of personnel development measures. The existing infrastructures were used to enable employees to learn in a self-directed manner. Training and Q&A sessions were also offered so that the material absorbed could be discussed again with a subject matter expert. The goal was to make it as easy as possible for employees to virtually collaborate and organize within the team. In the

Training hours of AGRANA employees1

in the 2020|21 and 2019|20 financial years

2020 21 2019 20
Average
training hours
Proportion
of employees
Average
training hours
Proportion
of employees
per employee who received
per employee
training
who received
training
Segment Total Male Female Total Male Female
Fruit 18.3 17.3 20.1 83.4% 31.6 32.6 29.5 89.8%
Blue-collar 16.5 15.6 19.5 83.1% 28.9 29.5 26.8 89.9%
White-collar 21.0 21.3 20.7 83.7% 36.0 39.8 31.7 89.7%
Starch 11.2 10.6 12.8 94.0% 21.4 17.4 34.3 89.8%
Blue-collar 9.2 8.6 13.4 92.3% 20.0 14.5 58.0 88.9%
White-collar 14.8 16.7 12.5 97.1% 24.1 26.3 21.6 91.7%
Sugar2 16.9 17.5 15.1 95.0% 26.8 27.7 24.4 89.7%
Blue-collar 20.6 21.4 17.3 96.1% 24.8 25.9 19.6 92.2%
White-collar 11.8 10.5 13.9 93.6% 29.5 31.0 27.2 86.2%
Group 16.8 16.2 18.1 87.9% 28.9 28.9 28.9 89.8%
Blue-collar 16.3 15.7 18.4 87.7% 26.6 26.1 28.3 90.3%
White-collar 17.6 17.4 17.8 88.3% 32.6 35.4 29.3 89.0%

The mandatory portion of training hours in 2020|21 (including occupational health and safety, first aid, compliance training, etc.) amounted to 59.5%. The Group's expenditure for external training and development in the 2020|21 financial year was about € 1.6 million (prior year: € 3.0 million), equivalent to 0.6% (prior year: 1.1%) of total wages and salaries.

2 The staff of AGRANA Beteiligungs-AG is counted under the Sugar segment.

spirit of "It can also be done online", a hackathon organized by Human Resources was one of the highlights of the digital collaboration. With more than 60 participants from the entire AGRANA Group, diversity was also a decisive factor – the more diverse the groups, the better the results. "What does AGRANA need right now, and even more importantly, how can learning and development contribute to the growth of AGRANA's profitability now and in the future?" was the question the hackathon participants addressed and for which they developed the first prototypes.

Workplace health and safety

In organisational terms, AGRANA's occupational safety management is the responsibility of the managing directors of AGRANA's segments and business units who are responsible for production, the plant managers of AGRANA's production sites and the local workplace health and safety officers. The workplace health and safety officers and safety specialists are responsible for ensuring compliance with all occupational health and safety measures prescribed by law or instituted by the company. These

Workplace safety data for the AGRANA Group1

for the 2020|21, 2019|20 and 2018|19 financial years

Rate of recordable
work-related injuries2
Rate of
high-consequence
work-related injuries3
Rate of fatalities
as a result of
work-related injury
Segment Total Male Female Total Male Female Total Male Female
2020 21
Fruit 1.1 1.5 0.5 0.0 0.0 0.0 0 0 0
Starch 2.4 2.8 1.2 0.0 0.0 0.0 0 0 0
Sugar 2.7 3.1 1.7 0.1 0.1 0.0 0 0 0
Group 1.6 2.1 0.7 0.0 0.0 0.0 0 0 0
2019 20
Fruit 1.1 1.4 0.6 0.0 0.1 0.0 0 0 0
Starch 2.8 3.4 0.4 0.0 0.0 0.0 0 0 0
Sugar 2.6 2.8 1.9 0.1 0.1 0.0 0 0 0
Group
2018 19
1.6 2.1 0.8 0.0 0.1 0.0 0 0 0
Fruit 1.5 1.9 0.9 0.1 0.1 0.0 0 0 0
Starch 2.6 3.3 0.0 0.1 0.1 0.0 0 0 0
Sugar 2.2 2.3 1.7 0.0 0.0 0.0 0 0 0
Group 1.8 2.2 1.0 0.0 0.1 0.0 0 0 0

No fatal work accident occurred in the 2020|21 financial year (prior year: zero fatalities). In the 2020|21 financial year there were 146 work accidents in the AGRANA Group1 (prior year: 148). In addition there were five accidents of contractors (prior year: 15 accidents), which for organisational reasons are not included in the workplace safety data.

Type and number of workplace accidents in 2020|21

Bruises, crushing injuries, lacerations (43), slips/falls/falls from heights resulting in injuries (39), cuts and punctures (19), burns and scalds (19), injuries caused by incorrect lifting, carrying and storage (16), business travel accidents (3), eye injuries (1), others (6).

1 Non-permanent (i.e., fixed-term or temporary) and permanent employees within the GRI reporting boundaries (see page 42).

  • 2 Rate of recordable work-related injuries ("injury rate") =
  • (total number of reportable accidents5 ÷ total paid hours worked6) × 200,0007
  • 3 Rate of high-consequence work-related injuries ("serious injury rate") =
  • (total number of serious injuries4 ÷ total paid hours worked6) × 200,0007
  • 4 An injury is classified as serious if full recovery or healing does not occur within six months of the accident.
  • 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.

Workplace safety targets for the AGRANA Group1

in the 2020|21 and 2021|22 financial years

Segment Workplace safety targets
for 2020 21
Target achievement
in 2020 21
Workplace safety targets
for 2021 22
Fruit
Fruit preparations
business
Injury rate²: 0.8
Lost day rate3: 10.5
Injury rate2: 1.0
Lost day rate3: 10.9
Despite a reduction in the
number of work accidents
due to fewer total hours
worked, the targets were
not achieved.
Injury rate²: 0.9
Lost day rate3: 10.5
Ongoing implementation
of workplace safety
and Covid-19 containment
measures.
Fruit juice concentrate
business
Careful documentation
and analysis of all workplace
accidents; identification
of preventive measures
and communication
of these measures across
the business.
Number of accidents
in 2018 19: 20
Number of accidents
in 2019 20: 17
Number of accidents
in 2020 21: 12
Further reduction
in number of accidents;
raising awareness through
ongoing communication
and employee training;
regular risk and hazard
analysis to prevent causes
of accidents.
Starch Injury rate2: 2.0
Lost day rate3: 20.0
Expansion of the work
place health and safety
initiative and plant-wide
mandatory use of personal
protective equipment
and of handrails; raising
awareness through a
multi-part internal safety
training programme based
on the "golden rules for
work – safe and healthy
together".
Injury rate2: 2.4
Lost day rate3: 20.6
Implemented mandatory
use of personal protective
equipment; internal
trainings slightly delayed
due to Covid-19.
Injury rate2: 2.0
Lost day rate3: 20.0
Continuation of the inter
nal training programme
launched in 2020 21;
to raise awareness, near
misses and dangerous
actions will in future
be recorded as part of the
monthly reporting
in every operational area.
Sugar Injury rate2: 2.4
Lost day rate3: 25.5
Continuing implementation
of site-specific measures
and improvement in perfor
mance results; reduction
of both the injury rate2
and lost day rate3 by 7% from
the prior year.
Injury rate2: 2.7
Lost day rate3: 37.1
Increase of 23.8% in the
number of work accidents
compared to the prior
year, with higher lost days
due to accidents.
Injury rate2: 2.5
Lost day rate3: 31.1
Continuation of quarterly
work safety meetings
with the plant managers
and safety specialists, intro
duced in 2020 21; mandatory
reporting in the weekly
meeting of the country
managers.

1 Employees within the GRI reporting boundaries (see page 42).

2 See definition on page 84.

3 Lost day rate = (total number of lost days4 ÷ total paid hours worked)2 × 200,0002

4 An eight-hour work day is assumed.

include, for example, both regular and event-driven hazard identification and risk assessment, the development of improvement measures, the organisation of occupational health and safety training and the analysis, documentation (together with Human Resources) and communication of actual occupational accidents.

In all 24 countries where AGRANA has production facilities, there is some form of legal obligation for the employer to assess the workplace. This assessment is carried out by the safety specialists, in some cases in collaboration with external consultants, and must be documented in a way that is job-specific and accessible to employees. It must be reviewed at regular intervals or revised as necessary in the event of changes to the facilities or processes or after accidents. Employees are obligated to report identified hazards, such as through documentation in the shift log, via the company suggestion system, or during periodic safety inspection rounds. In the fruit preparations business with its global operations, this reporting obligation can also be fulfilled anonymously at some locations, for cultural reasons.

In addition to legally required local occupational health and safety measures and reporting obligations (e.g., to insurance providers), the AGRANA Group has for many years collected monthly, standardised worldwide data on workplace health and safety. This serves to improve the Group-wide comparability and analysis of occupational accidents and forms the basis for the development of improvement measures and targets under the programmes in the business segments and businesses.

The central occupational health and safety committee, which convenes annually, provides the occupational health and safety officers of the European sites, the managing directors responsible, human resources managers and employee representatives with a forum for the supraregional and cross-functional discussion of safety and health issues, such as the analysis of selected accidents or types of accident (including those occurring at non-European sites) and the discussion of further measures for accident prevention. In the internationally operating fruit preparations division, there are also functionally diverse

working groups and advisory bodies that have made the division's "Safety First" occupational safety programme the AGRANA Group's leading initiative in workplace safety.

For the AGRANA Group as well, the Covid-19 pandemic defined the 2020|21 financial year. The year was marked by sharply rising Covid-19 infection rates in many countries and the associated sweeping restrictions on public life such as curfews, business closures and limitations on events. With the measures taken, the AGRANA Group succeeded in keeping the number of Covid-19 cases relatively low. The strict adherence to the infection prevention rules is also essential for orderly work and production in AGRANA's plants. In the food sector in particular, AGRANA is an important link in the supply chain and is classified as part of critical infrastructure in many countries.

From the beginning of the coronavirus pandemic, AGRANA has been able to ensure the supply of its products to its customers despite the additional challenges. Every plant worldwide is diligently producing and working to maintain business continuity. All AGRANA production sites are operating with appropriate safety measures in place, such as non-contact shift handovers, physical distancing rules, personal protective equipment and even-stricter hygiene protocols. Other preventive measures include regular free Covid-19 rapid antigen tests at many sites.

During the phases of acute risk, administrative staff worked remotely where possible. Through virtual meetings and coordination, regular communication was maintained. Since the outbreak of the pandemic, AGRANA has not taken advantage of any state-subsidised work sharing schemes (short-time working) for its employees in Austria.

Health programmes

As part of its ongoing routine occupational health care under the "AGRANA Fit" programme, at many sites AGRANA offers preventive health check-ups and/or vaccinations (for influenza, tick-borne encephalitis, titre testing, etc.). These are intended to help maintain and improve employees' health and well-being. As well, some locations have individual arrangements with local health care organisations and fitness facilities.

AGRANA provides a broad sports offering for its employees, such as running groups, back fitness training, rowing courses, "deep work", Zumba toning, high-intensity interval training, after work bodyweight, vinyasa flow yoga, Pilates and boot camp courses. The courses were shifted to a digital format during the year to allow employees to participate from home. Alongside the wide variety of numerous health and sports opportunities, the Group also provided many workshops for employee information, awareness-building and continuing development in the areas of work-life balance management, nutrition, stress reduction, burnout prevention, and for good ergonomics in the workplace. Resilience was also an important aspect in the year. Among managers, awareness was raised for personal qualities such as resilience and mindfulness.

The annual Wien Energie Business Run could not take place in 2020 amid the pandemic. However, employees keen on running were offered the opportunity to take part in virtual competitions – running wherever they were while measuring themselves online against participants from all over Europe.

As healthful nutrition is such an important element of personal well-being, AGRANA promotes healthy, balanced diets through workshops and local campaigns, such as making available free fresh fruit.

Balancing work and family

Ensuring that work is compatible with family life is an important part of AGRANA's human resources strategy from a social responsibility perspective. AGRANA in 2016 thus joined the Austrian "Business for Family" network of the Federal Ministry for Work, Family and Youth (also see the corporate governance report, annual report 2020|21 on page 27).

Across the Group, this is reflected in many initiatives and offerings for employees. These include remote working, the funding or even direct provision of child care in certain locations, variable working hours, and a parent-child office at the Vienna headquarters.

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

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

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

Risk management representatives have been designated for the business segments of the AGRANA Group. 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.

Risk policy

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 Group-wide 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 outside the core businesses of the AGRANA Group. The positions in hedge contracts and their current value are regularly reported to the Management Board.

Significant risks and uncertainties

The AGRANA Group is exposed to risks both from its business operations and from its national and international operating environment.

Operational risks

Procurement risks

AGRANA is dependent on the availability of sufficient amounts of agricultural raw materials of the necessary quality. Beyond a possible supply shortfall of appropriate raw materials, 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-related conditions in the growing regions (also see "Non-financial statement", from page 43), the competitive situation, regulatory and legal requirements, and movements in the exchange rates of relevant currencies.

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 centrally. 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.

In the Starch segment, the changes in raw material prices relative to the selling prices of the end products vary as a result of the broad product portfolio. In starches and by-products, price changes for raw materials lead to a change in product market prices in the same direction, thus acting as a natural hedge by partly offsetting the raw material price risks. 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. For saccharification products, the prices are correlated with European sugar prices and are largely unaffected by raw material price movements.

Thanks to the procurement in national and international markets, the raw material supply can largely be regarded as secure. The supply of specialty raw materials is sufficiently secured through contract farming and supply contracts. When economical, raw material prices can also be hedged and/or the supply secured through futures contracts and over-the-counter derivatives, both of which require management approval. The volume and results of these hedges are included in the regular reporting and are reported to AGRANA's Management Board.

In the Sugar segment, sugar beet and raw cane 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 compared to other field crops. The availability of sugar beet is becoming an increasingly significant consideration, as final beet prices partly depend on the sales price of sugar.

With the aim of keeping both Austrian sugar plants in production, AGRANA intensified its efforts regarding the collaboration with beet farmers and beet grower associations in order to contract the required volume of beet. Negotiated minimum prices are paid for sugar beet so that farmers can budget with predictable and more stable parameters.

Planned future cancellations of national coupled premiums for beet cultivation to farmers in the beet production regions of Hungary, Romania, the Czech Republic and Slovakia will have a negative impact on the income of local farmers and may represent a price and/or volume risk for AGRANA.

At 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 to the European Union and the CEFTA countries. 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.

The production processes, especially in the Starch and Sugar 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.

Product quality and safety

AGRANA sees the manufacturing and marketing of high-quality, 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.

Market risks and competitive 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 changes in the European sugar market (including the abolition of production quotas at the end of September 2017) and surpluses on the world market have led to sharp declines in sugar selling prices. Going forward, the trend in sugar prices in European markets and outside the EU will continue to have a major influence on the earnings situation in the Sugar segment.

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.

IT risks

AGRANA is reliant on the functioning of a complex information technology infrastructure. System non-availability, data loss or data tampering and breaches of confidentiality in critical IT systems can have significant impacts on business operations. The general trend in external attacks on IT systems of organisations implies that the AGRANA

Group too is or may increasingly be subject to such threats in the future. The maintenance of IT security is ensured by qualified internal and external experts and by appropriate organisational and technical measures. These include redundant IT systems and security tools that are state-of-the-art. Together with external partners, precautions have been taken to counter possible threats and avert potential damage.

Regulatory risks

Risks from sugar market regulation

As part of the risk management process, potential scenarios and their impacts are examined and assessed from an early stage. Current developments and their implications are also reported from page 71 of this report in the section on the Sugar segment.

Sugar regime: Since 1 October 2017 the European sugar industry has been operating in a transformed environment compared to the prior market regime. As part of the underlying new regulations, market transparency is enhanced in the agricultural and food supply chain. The EU Commission has adopted new regulatory measures in the form of various reporting requirements in the implementing regulations (EU) 2017/1185 and (EU) 2019/1746.

The aim is to improve transparency in the agriculture and food sector in order to enable informed decision-making by economic actors and public authorities and to improve market participants' understanding of market developments.

For the first time, this creates the need to determine prices at stages of the value chain that lie between the producers of the raw materials and the final consumers. This applies both to food retailers and wholesalers and to food processors.

Free trade agreements: Future free trade agreements of the European Union could have economic impacts on AGRANA. The Group is following ongoing trade talks and analysing and evaluating the results as they become known.

The EU and the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) in June 2019 reached political agreement on a comprehensive trade agreement. The proposal now enters a ratification process in each member country.

The European Commission is currently negotiating the terms of a free trade agreement with Australia and New Zealand.

In addition, national tax and customs regulations and their interpretation by local authorities can lead to further risks in the regulatory environment.

Brexit: AGRANA's direct business relationships with customers and suppliers in the United Kingdom are not material. Therefore, no significant impact from the UK procurement and sales market is expected for the Group. However, it cannot be ruled out that the abolition of import restrictions for sugar in the UK could lead to market disruptions and increased price pressure on the European continent.

EU Renewable Energy Directive

Several years ago, on 21 December 2018, the EU adopted the revised Renewable Energy Directive (RED II). Work is currently underway on the national implementation of this directive, which is due to come into force by 30 June 2021.

The new directive sets a minimum requirement of 14% renewable energy in the transport sector by 2030. It caps the share of cereal-based biofuels at the level of the national share as of 2020, up to a maximum of 7%. Furthermore, a sub-target of at least a 3.5% share by 2030 was set for so-called advanced biofuels ("secondgeneration" biofuels). The list of raw materials qualifying for advanced biofuels is given in Annex IX of the directive and can be expanded by the European Commission.

In Austria the target for the biofuel share under the fuel regulation currently in force is 5.75% (based on RED I), of which 3.4% is the target for bioethanol (measured by energy content in both cases). The introduction of E10 would raise the biofuel content directly to the 7% target, at the existing production capacities. At the national level, this would not only meet the RED II requirements but also allow the demonstrable reduction of particle emissions.

Legal risks

AGRANA continually monitors changes in the legal setting relevant to its businesses or to their employees that could result in 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, and provides regular further training for the employees involved.

As noted in previous annual reports, the Austrian Federal Competition Authority (AFCA) in 2010 sought a fine under an antitrust case for alleged competitionrestricting arrangements with respect to Austria filed against AGRANA Zucker GmbH, Vienna, and Südzucker AG ("Südzucker"), Mannheim, Germany. The Vienna Higher Regional Court on 19 May 2019 dismissed the suit and did not impose a fine; the AFCA has appealed the decision to the Supreme Court. The AFCA justifies this primarily on the grounds that, in its decision, the German Federal Competition Authority took into account only the wrongfulness of Südzucker's behaviour in relation to Germany and that the imposition of an "additional penalty" in relation to Austria was both permissible and appropriate. By a decision of 27 March 2020, the Supreme Court adjourned the appeal proceedings and asked the European Court of Justice (ECJ) for a preliminary ruling on the scope of the "ne bis in idem" principle in EU competition proceedings. This interim proceeding is still pending. The ECJ's ruling is expected in the first calendar quarter of 2022. AGRANA continues to regard the allegation as unfounded and the fine sought as unwarranted.

AGRANA Stärke GmbH is also a defendant in proceedings before the Vienna Commercial Court. The plaintiff claims to have suffered damages from non-delivery of promised quantities of product. This proceeding in the court of first instance is at the stage of taking evidence. A first-instance decision could come in the 2021|22 financial year. AGRANA considers the plaintiff's claims to be unfounded in view of the lack of a valid agreement on the purchase quantities.

Otherwise, there are 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.

Financial risks

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. The Group's financing management is provided centrally by the Treasury department, which regularly reports to the Management Board on the movement in and structure of the available credit lines, on the Group's net debt, on the financial risks and on 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 and, consequently, on the Group.

Interest rate risks

Interest rate risks arise from fluctuation in the value of fixed interest financial instruments as a result of changes in market interest rates; this is referred to as interest rate price risk. By contrast, floating rate investments or borrowings are subject to minimal price risk, as their interest rate is adjusted to market rates very frequently. As a result of the negative interest rate environment that has existed in the money market for several years, especially in the euro zone, the AGRANA Group is also adversely affected in connection with floating-rate financial assets and financings. In the case of bank balances, there is the risk of negative interest rates being passed through, whereas in the case of some borrowings the negative interest rate is not passed through to benefit AGRANA.

In addition, the fluctuation in market interest rates entails risk as to the amounts of future interest payments; this is referred to as interest rate cash flow risk. AGRANA strives to employ interest rate hedging instruments that match the amount and maturity of debt financing. In accordance with IFRS 7, the existing interest rate risks are determined by calculating Cash-Flow-at-Risk and the modified duration and are presented in detail in the notes to the consolidated financial statements.

Currency risks

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

The AGRANA Group's objective and policy is to hold sufficient cash and cash equivalents at all times to meet its payment obligations. Liquidity risks at single-company or country level are detected early through the standardised reporting, thus allowing timely mitigative action to be taken as appropriate. The liquidity of the AGRANA Group is sufficiently assured for the long term through bilateral and syndicated credit lines.

Counterparty and bank risks

Due to the AGRANA Group's transnational scope, bank balances and financial investments are held with various banking partners and have a global distribution. The AGRANA Group closely and regularly monitors the associated risk of default. Under its internal guidelines, business relationships may only be entered into with top-quality banks with a defined minimum credit rating. In cases where the minimum rating cannot be met, upper limits for credit balances are specified and must be strictly adhered to.

Risks of default on receivables

Risks of default on receivables are mitigated by trade credit insurance, strict credit limits, and the ongoing monitoring of customers' credit quality. The remaining risk is covered by raising appropriate amounts of provisions (also see "Coronavirus (Covid-19)" below).

The financial risks are explained in detail in the notes to the consolidated financial statements, in the section "Notes on financial instruments" (from page 157).

Coronavirus (Covid-19)

The global spread of coronavirus disease, or Covid-19, has led to drastic restrictions on public, social and economic life in many countries worldwide. AGRANA maintains production sites and sales locations on six continents and is therefore affected in various regions within and outside Europe.

Following the declaration of a pandemic by the World Health Organization, a Group-wide pandemic policy was issued for the safety of employees and the maintenance of production. Essentially, this meant that crisis teams were activated, local business continuity plans implemented, communication and hygiene measures stepped up, and special attention is paid to complying with the authorities' recommendations and orders. As well, restrictions are in place on business travel, and temporary remote work from home was made possible.

The measures taken brought positive results for the Group and full production operations1 were successfully maintained at the 56 production sites worldwide. In addition, the functioning of the transport logistics chains was ensured so that there were no significant delays in deliveries to customers.

As part of the critical infrastructure and a food producer, AGRANA's is one of the less affected industries economically. Nevertheless, Covid-19 will have a sustained impact on the trajectory of the world economy, especially in the immediate future. It is possible that the usual growth at pre-crisis levels will not be achieved again for several years. A key accelerator in overcoming the pandemic lies in achieving the highest possible vaccination rate of the world population. Until then, procurement, production and the markets served may be adversely affected.

After the outbreak of the pandemic, the financial and capital markets as well as interbank trading saw temporary severe turmoil. Likewise, the economic trend going forward remains characterised by macroeconomic uncertainty, influenced in part by lock-down phases. Despite government support measures, the insolvency rate is also expected to rise. A reduction in insurance coverage under trade credit insurance was already observed in the 2020|21 financial year, and also, in individual cases, complete cancellation of coverage or greater difficulty in obtaining first-time cover on sales to new customers. These developments led to closer monitoring of trade receivables and of adherence to credit terms, as well as to alternative risk assessment measures and safeguards. Thanks to the measures taken, no additional significant defaults on receivables are currently being observed.

AGRANA is in close contact with its principal banks and constantly monitors the availability of the existing credit lines. Thus, the successful renewal of a syndicated credit line was the focus of the Group Treasury department's activities at the end of the 2020 calendar year. Likewise, the cash holdings in the bank accounts maintained worldwide and the ratings of the banking partners are continually and critically reviewed and reallocations are made where necessary.

Non-financial risks

In the 2020|21 financial year, AGRANA continued to analyse non-financial risks and risks that are not primarily financial. The analysis was based on the requirements of the Austrian Sustainability and Diversity Act and section 267a of the Austrian Commercial Code, as well as the Global Reporting Initiative (GRI) and the reporting recommendations on climate-related risks and opportunities issued by the Task Force on Climate-related Financial Disclosures (TCFD).

While the legal and GRI requirements focus on the non-financial risks and actual impacts triggered by companies, the TCFD recommends increased reporting of the risks that climate change poses to companies.

AGRANA's risk management addresses the risks affecting AGRANA and, within the scope of its business activities, covers the physical risks acting on the Group (in particular, raw material procurement risks). Under AGRANA's risk management system and the group-wide uniform planning and reporting system, the observation period for the above risks is five years (for a description, see the section "System of internal control and of risk management", page 95).

In the year under review, the Agricultural Research department at the AGRANA Research & Innovation Center continued its ongoing projects in collaboration with Vienna's University of Natural Resources and Life Sciences. These have as their purpose data collection, but most importantly also the consolidation and further development of existing longer-term observations regarding the physical availability of selected raw materials, in order to be able to make long-run, scenario-based predictions on the availability of raw materials under changed climatic conditions in the future.

As an energy-intensive industrial processor especially in the Starch and Sugar segments, AGRANA is subject to the EU Emissions Trading Scheme for most of its production facilities in these segments. For that reason, the company has long paid close attention to potential regulatory (transition) risks related to energy legislation. Political directives in the fight against climate change will, through the 2015 Paris Climate Agreement and the European Green Deal that is based on it, give rise to increased regulatory risks for AGRANA in the coming years in the context of the transformation to a low-emission society.

In December 2019, the European Commission presented its decarbonisation roadmap, the Green Deal. To meet the climate and environmental challenges, industrial sectors and all value chains are to be transformed within the next 30 years. The overarching objective is to achieve net zero greenhouse gas (GHG) emissions within the EU by 2050. An interim EU target adopted in December 2020 is to reduce GHG emissions by 55% by the year 2030 compared to 1990 levels.

Apart from the climate ambitions, under the Green Deal all areas of legislation will be reviewed for their consistency with the goal of climate neutrality. This may lead to legislative amendments, such as in the Industrial Emissions Directive or the Emissions Trading Directive, for example. Also important in this context are the discussions surrounding a carbon border adjustment mechanism (i.e., import fees levied by carbon-taxing countries on goods manufactured in non-carbon-taxing countries) and the introduction of a price for CO2.

Other Green Deal work packages that matter for AGRANA, especially when it comes to its supply chain, include the Farm to Fork initiative, the implementation of a circular economy and the biodiversity strategy.

Another important core element of the Green Deal for the transformation towards a low-carbon society is the redirection of financial flows in favour of environmentally sustainable economic activities that contribute to the achievement of the six EU environmental goals: climate change mitigation and adaptation, sustainable use of water resources, transition to a circular economy, pollution prevention, and protection of ecosystems and biodiversity.

In summer 2020, the European Union adopted the EU taxonomy, a classification system that defines criteria for reporting sustainable "green" sales, investments and operating expenses which serve primarily one of the above environmental goals without significantly compromising any of the other five. AGRANA will be required to make these disclosures from the 2021|22 financial year. Technical evaluation criteria for the further development of the taxonomy are currently being elaborated and will take the form of delegated acts. Which of AGRANA's products and segments will be covered by which regulations is still an open question. It is expected that in the 2021|22 financial year, not all AGRANA products (and thus business segments) will be subject to requirements for reporting "green" revenue, capital expenditure or operating expenses. Whether and how this may be expanded in subsequent financial years is unclear at present. In general, it is believed that as the share of "green" revenue, investments or operating expenses increases, there could be advantages in terms of financing and government subsidies.

In recognition of the aspirations of the European Green Deal, AGRANA decided in the 2020|21 financial year to obtain a € 250 million revolving credit facility linked to an ESG rating, a first for the Group. The working principle of the link to the environmental, social and governance rating is that a positive change in the ESG rating leads to a slight improvement in the credit margin, while a negative change in the rating leads to a slight deterioration in the credit margin.

AGRANA takes these potential risks and opportunities into account in its decarbonisation strategy, which was developed further in the 2020|21 financial year (for details, see from page 45).

Both those risks described in this risk report that affect AGRANA, and the risks for and actual impacts on the environment and society caused by AGRANA's business activities, together with the measures taken to manage these risks, are described in more detail in the Non-financial information statement from page 38. AGRANA, both for the risks affecting it and those triggered by it, 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.

Aggregate risk

The Group's aggregate risk exposure was marked by high volatility in selling prices and raw material purchasing prices. In the Sugar segment, the influence of world market prices on prices in Europe has grown in significance. In the bioethanol activities, profitability is critically determined by the future trend in sales prices. The fact that the prices of the corn and wheat used as raw materials can move independently of ethanol prices makes it even more difficult to forecast the earnings trajectory of the bioethanol operations.

Owing to the only gradually increasing EU selling prices for sugar and isoglucose, the volatile price trend for bioethanol and the fluctuating costs due to the high volatility of raw material prices, as well as the continuing uncertainty regarding the extent and duration of the coronavirus crisis, the Group's overall risk position is significantly above the average of the previous years. However, it is covered by a high equity base and the AGRANA Group is able to balance out risks thanks to the diversification provided by the three business segments.

As before, there are no risks to the AGRANA Group's ability to continue in business (no such risks are currently discernible).

System of internal control and of risk management (disclosures under section 243a (2) Austrian Commercial Code)

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 ERP1 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 the 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 to four 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 the Controlling department 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 in which the risk potential is calculated 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 88) 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 take timely corrective action as required.

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

As part of the audit of the financial statements, the external independent auditor 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.

Capital, shares, voting rights and rights of control1

The share capital of AGRANA Beteiligungs-AG at the balance sheet date of 28 February 2021 was € 113.5 million (29 February 2020: € 113.5 million), divided into 62,488,976 voting ordinary no-par value bearer shares (29 February 2020: 62,488,976 such shares). There are no other classes of shares.

AGRANA Zucker, Stärke und Frucht Holding AG ("AZSF"), based in Vienna, is the majority shareholder, directly holding 78.34% of the share capital of AGRANA Beteiligungs-AG. The share capital of AZSF is in turn held by Zucker-Beteiligungsgesellschaft m.b.H. ("ZBG"), Vienna, which owns a 50% interest less one share (that share being held by AGRANA Zucker GmbH, a subsidiary of AGRANA Beteiligungs-AG) and by Südzucker AG ("Südzucker"), Mannheim, Germany, which holds the other 50%. The following four 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.; 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 AZSF, 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 was 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 must 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. Since then, the Management Board does not have powers to issue or repurchase shares except to the extent provided by law.

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

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

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

Outlook

With its diversified business model and sound balance sheet, AGRANA considers itself well positioned for the future.

AGRANA Group 2020 21
Actual
2021 22
Forecast
Revenue €m 2,547.0 Moderate increase i
EBIT €m 78.7 Significant increase ii
Investment1 €m 72.3 91

Despite the continuing substantial challenges as a result of the Covid-19 pandemic, the Group's operating profit (EBIT) is expected to increase significantly in the 2021|22 financial year. Group revenue is projected to show moderate growth.

Total investment across the three business segments in this new financial year, at approximately € 91 million, is to be above the 2020|21 level, but significantly below this year's budgeted depreciation of about € 121 million.

Fruit segment 2020 21
Actual
2021 22
Forecast
Revenue €m 1,166.6 Moderate increase i
EBIT €m 41.2 Significant increase ii
Investment1 €m 34.2 47

In the Fruit segment, AGRANA expects the 2021|22 financial year to bring growth in revenue and EBIT. For the fruit preparations business, a positive revenue trend is predicted. With the full utilisation of the capacity created and the progressive further diversification in the non-dairy business2, EBIT is also expected to increase further. In the fruit juice concentrate business, revenue is projected to remain stable in 2021|22, with a significantly improved earnings situation compared to the prior year.

Investment in the Fruit segment this year is budgeted at approximately € 47 million, which is about 8% above the expected level of depreciation. The planned main focus is on asset replacement and maintenance investment as well as production optimisation measures.

Starch segment 2020 21
Actual
2021 22
Forecast
Revenue €m 821.9 Steady p
EBIT €m 64.8 Significant reduction ss
Investment1 €m 22.2 24

For the 2021|22 financial year, the Starch segment is forecasting stable revenue and an EBIT result significantly below the prior-year level. For as long as economic output remains below pre-pandemic levels, demand is not expected to rise and price increases are unlikely to be feasible. On the cost side, the segment expects significantly higher grain prices for the 2020 crop, as well as rising energy prices.

The budgeted investment in the Starch segment this year is about € 24 million; after the major projects of the prior years, it will thus be significantly below the level of depreciation. The largest individual portion of this amount is for measures to increase specialty corn processing.

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

2 The non-dairy product segments are ice-cream, bakery, and food service.

Sugar segment 2020 21
Actual
2021 22
Forecast
Revenue €m 558.5 Significant increase ii
EBIT €m (27.3) Very significant
improvement
iii
Investment1 €m 15.9 20

For the Sugar segment, AGRANA expects 2021|22 to bring a continual improvement in conditions in the EU sugar market. AGRANA anticipates being able to significantly boost capacity utilisation again, especially at the two Austrian sugar beet factories, as it has initiated various measures designed to ensure a significant increase in beet supply. On the distribution side, sugar sales volumes in the EU are expected to rise and EU sugar prices are forecast to be stable or to increase. This positive trend in the EU sugar market environment, combined with rigorous cost management, implies a very significant improvement in the EBIT result.

Capital expenditure of approximately € 20 million is planned for the Sugar segment, focusing mainly on asset replacement and maintenance investment.

Due to the ongoing Covid-19 crisis and the associated pronounced volatility in all business segments, the forecast for the full year is subject to very high uncertainty.

The quantitative statements and direction arrows in the "Outlook" section 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% and up to +50%,
or more than –10% and up to –50%
Very significant(ly) iii or sss More than +50% or more than –50%

Sustainability outlook for 2021|22

In the 2020|21 financial year, AGRANA worked intensively to advance its climate strategy, which is consistent with the Paris climate targets and the regulatory requirements at the national and EU levels. All AGRANA business segments developed a staged plan with specific decarbonisation targets and action steps for their production activities (Scope 1+2) in order to be net carbon-neutral by 2040. A project to quantify indirect emissions from the upstream and downstream value chain (Scope 3) will follow in the 2021|22 financial year in order to be able to set relevant, ambitious targets for this sphere as well. Progress in target achievement is reported annually.

CONSOLIDATED FINANCIAL STATEMENTS 2020|21

  • Consolidated income statement 100
  • Consolidated statement of comprehensive income 101
  • Consolidated cash flow statement 102
  • Consolidated balance sheet 103
  • Consolidated statement of changes in equity 104
  • Notes to the consolidated financial statements 108
  • Segment information 108
  • Basis of preparation 111
  • Scope of consolidation 115
  • Consolidation methods 122
  • Currency translation 122

  • Financial reporting in hyperinflationary economies 123

  • Accounting policies 124
  • Notes to the consolidated income statement 132
  • Notes to the consolidated cash flow statement 140
  • Notes to the consolidated balance sheet 142
  • Notes on financial instruments 157
  • Events after the balance sheet date 175
  • Related party disclosures 175
  • List of members of AGRANA's boards 178
  • Statement by the members of the Management Board 179
  • Independent auditor's report 180

Consolidated income statement

Consolidated income statement for the year ended 28 February 2021

€000 2020 21 2019 201
Revenue 2,546,984 2,480,732
Changes in inventories of finished and unfinished goods (14,529) 64,764
Own work capitalised 2,820 1,898
Other operating income 42,964 37,671
Cost of materials (1,759,232) (1,759,277)
Staff cost (345,294) (341,660)
Depreciation, amortisation and impairment losses (120,148) (130,444)
Other operating expenses (292,387) (303,472)
Share of results of equity-accounted joint ventures 17,513 16,727
Operating profit [EBIT] 78,691 66,939
Finance income 24,896 22,851
Finance expense (43,392) (40,042)
Net financial items (18,496) (17,191)
Profit before tax 60,195 49,748
Income tax expense (5,210) (18,567)
Profit for the period 54,985 31,181
Attributable to shareholders of the parent 59,787 28,051
Attributable to non-controlling interests (4,802) 3,130
Earnings per share under IFRS (basic and diluted) € 0.96 € 0.45

1

100

Consolidated statement of comprehensive income Consolidated statement of comprehensive income

for the year ended 28 February 2021 for the year ended 28 February 2021

€000 2020 21 2019 201
Profit for the period 54,985 31,181
Other comprehensive (expense)/income:
Currency translation differences and hyperinflation adjustments (43,031) (2,030)
Changes in fair value of hedging instruments (cash flow hedges),
after deferred taxes 356 (288)
Effects from equity-accounted joint ventures (3,391) (3,742)
(Expense)/income to be recognised
in the income statement in the future (46,066) (6,060)
Change in actuarial gains and losses on defined benefit
pension obligations and similar liabilities, after deferred taxes 502 (5,069)
Changes in fair value of equity instruments, after deferred taxes 0 367
Effects from equity-accounted joint ventures 4 (10)
Expense that will not be recognised
in the income statement in the future 506 (4,712)
Other comprehensive (expense) (45,560) (10,772)
Total comprehensive income for the period 9,425 20,409
Attributable to shareholders of the parent 17,666 17,643
Attributable to non-controlling interests (8,241) 2,766

Consolidated cash flow statement

Consolidated cash flow statement for the year ended 28 February 2021

€000 2020 21 2019 20
Profit for the period 54,985 31,1811
Depreciation, amortisation and impairment of non-current assets 120,453 130,4731
Reversal of impairment losses on non-current assets (199) (28)
(Gains) on disposal of non-current assets (339) (1)
Changes in non-current provisions (3,619) 2,303
Share of results of equity-accounted joint ventures (17,513) (16,727)
Dividends received from equity-accounted joint ventures 21,000 14,000
Loss on net monetary position under IAS 29 823 912
Non-cash expenses/income and other adjustments 23,234 25,718
Operating cash flow before changes in working capital 198,825 187,831
Changes in inventories (13,503) (102,588)
Changes in receivables and current assets (37,477) (296)
Changes in current provisions (7,434) (16,548)
Changes in payables (excluding borrowings) 43,794 66,450
Changes in working capital (14,620) (52,982)
Interest received 802 2,001
Interest paid (7,930) (8,814)
Tax paid (13,454) (17,940)
Net cash from operating activities 163,623 110,096
Dividends received 22 17
Proceeds from disposal of non-current assets 2,829 1,971
Purchases of property, plant and equipment and intangible assets,
net of government grants (70,509) (150,030)
Proceeds from disposal of securities 468 6
Proceeds from disposal of subsidiaries, net of cash 0 582
Purchases of non-current financial assets (3,345) (8,124)
Purchase of subsidiaries, net of cash acquired (9,111) 0
Net cash (used in) investing activities (79,646) (155,578)
Repayment of borrowings to affiliated companies in the Südzucker group 0 (85,000)
(Repayment of)/proceeds from Schuldscheindarlehen, or bonded loan (26,000) 164,500
Outflows from lease liabilities (7,266) (6,437)
Repayment of investment loan of the European Investment Bank (4,882) (4,882)
(Repayment of)/proceeds from syndicated loans (70,000) 10,000
Inflows from bank overdrafts and cash advances 97,520 42,344
Dividend paid (48,826) (63,203)
Net cash (used in)/from financing activities (59,454) 57,322
Net increase in cash and cash equivalents 24,523 11,840
Effect of movement in foreign exchange rates (5,437) (511)
on cash and cash equivalents
Effect of IAS 29 on cash and cash equivalents (1,530) (496)
Cash and cash equivalents at beginning of period 93,415 82,582
Cash and cash equivalents at end of period 110,971 93,415

10

102

Consolidated balance sheet Consolidated balance sheet

at 28 February 2021

€000 28 Feb
2021
29 Feb
20201
ASSETS
A. Non-current assets
Intangible assets 254,599 254,997
Property, plant and equipment 859,659 932,795
Equity-accounted joint ventures 72,118 76,919
Securities 19,416 19,599
Investments in non-consolidated subsidiaries and outside companies 1,683 919
Other assets 8,106 12,410
Deferred tax assets 16,440 14,175
1,232,021 1,311,814
B. Current assets
Inventories 700,613 710,500
Trade receivables 323,055 319,457
Other assets 96,069 89,334
Current tax assets 10,005 4,813
Cash and cash equivalents 110,971 93,415
1,240,713 1,217,519
Total assets 2,472,734 2,529,333
A. Equity
Share capital
113,531 113,531
Share premium and other capital reserves 540,760 540,760
Retained earnings 619,493 649,295
Equity attributable to shareholders of the parent 1,273,784 1,303,586
Non-controlling interests 55,313 63,435
1,329,097 1,367,021
B. Non-current liabilities
Retirement and termination benefit obligations 67,786 73,401
Other provisions 29,396 29,756
Borrowings 493,637 450,212
Other payables 1,094 6,418
Deferred tax liabilities 5,502 5,504
597,415 565,291
C. Current liabilities
Other provisions 17,478 20,789
Borrowings 80,274 126,814
Trade payables 311,524 311,771
Other payables 130,800 131,553
Tax liabilities 6,146
546,222
6,094
597,021
Total equity and liabilities 2,472,734 2,529,333

Consolidated statement of changes in equity for the year ended 28 February 2021 Consolidated statement of changes in equity

for the year ended 28 February 2021

Attributable to the shareholders

Retained
€000
2020 21
Share
capital
Share
premium
and other
capital
reserves
Reserve
for equity
instruments
Reserve for
hedging
instruments
(cash flow
hedges)
Reserve
for
actuarial
gains and
losses
Effects
from
equity
accounted
joint
ventures
At 1 March 2020 113,531 540,760 3,110 (619) (38,988) (30,413)
Changes in fair value
of hedging instruments
(cash flow hedges)
0 0 0 501 0 562
Changes in actuarial gains and losses
on defined benefit pension obligations
and similar liabilities 0 0 0 0 1,857 4
Tax effects 0 0 0 (145) (1,420) (141)
Currency translation (loss) and
hyperinflation adjustments
0 0 0 0 0 (3,950)
Other comprehensive
income/(expense) for the period
0 0 0 356 437 (3,525)
Profit for the period 0 0 0 0 0 0
Total comprehensive
income/(expense) for the period 0 0 0 356 437 (3,525)
Dividends paid 0 0 0 0 0 0
Transfer to reserves 0 0 0 0 0 0
Other changes 0 0 0 0 0 0
At 28 February 2021 113,531 540,760 3,110 (263) (38,551) (33,938)
619,493

of AGRANA Beteiligungs-AG

earnings

Other
retained
earnings
Currency
translation
reserve
Profit
for the
period
Equity
attributable
to share
holders of
the parent
Non
controlling
interests
Total
786,447 (98,293) 28,051 1,303,586 63,435 1,367,021
0 0 0 1,063 187 1,250
0 0 0 1,861 88 1,949
0 0 0 (1,706) (69) (1,775)
0 (39,389) 0 (43,339) (3,645) (46,984)
0 (39,389) 0 (42,121) (3,439) (45,560)
0 0 59,787 59,787 (4,802) 54,985
0 (39,389) 59,787 17,666 (8,241) 9,425
0 0 (48,117) (48,117) (710) (48,827)
(20,066) 0 20,066 0 0 0
649 0 0 649 829 1,478
767,030 (137,682) 59,787 1,273,784 55,313 1,329,097

Attributable to the shareholders

Retained
€000 Share
capital
Share
premium
and other
capital
reserves
Reserve
for equity
instruments
Reserve for
hedging
instruments
(cash flow
hedges)
Reserve
for
actuarial
gains and
losses
Effects
from
equity
accounted
joint
ventures
2019 201
At 1 March 2019
113,531 540,760 2,743 (331) (33,988) (26,545)
Changes in fair value
of equity instruments 0 0 489 0 0 0
Changes in fair value
of hedging instruments
(cash flow hedges)
0 0 0 (394) 0 471
Changes in actuarial gains and losses
on defined benefit pension obligations
and similar liabilities
0 0 0 0 (6,073) (10)
Tax effects 0 0 (122) 106 1,073 (116)
Currency translation (loss) and
hyperinflation adjustments 0 0 0 0 0 (4,213)
Other comprehensive
income/(expense) for the period 0 0 367 (288) (5,000) (3,868)
Profit for the period 0 0 0 0 0 0
Total comprehensive
income/(expense) for the period 0 0 367 (288) (5,000) (3,868)
Dividends paid 0 0 0 0 0 0
Transfer to reserves 0 0 0 0 0 0
Changes in equity interests
and in scope of consolidation 0 0 0 0 0 0
Other changes 0 0 0 0 0 0
At 29 February 2020 113,531 540,760 3,110 (619) (38,988) (30,413)
649,295

106

of AGRANA Beteiligungs-AG

earnings

Non
controlling
Equity
attributable
to share
holders of
Profit
for the
Currency
translation
Other
retained
Total interests the parent period reserve earnings
1,409,928 61,186 1,348,742 25,406 (96,674) 823,840
489 0 489 0 0 0
234 157 77 0 0 0
(6,177) (94) (6,083) 0 0 0
925 (16) 941 0 0 0
(6,243) (411) (5,832) 0 (1,619) 0
(10,772) (364) (10,408) 0 (1,619) 0
31,181 3,130 28,051 28,051 0 0
20,409 2,766 17,643 28,051 (1,619) 0
(63,203) (714) (62,489) (62,489) 0 0
0 0 0 37,083 0 (37,083)
(113) (8) (105) 0 0 (105)
0 205 (205) 0 0 (205)
1,367,021 63,435 1,303,586 28,051 (98,293) 786,447

Notes to the consolidated financial statements Notes to the consolidated financial statements

AGRANA Beteiligungs-Aktiengesellschaft ("the Company", "AGRANA Beteiligungs-AG") 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 world-wide industrial processing of agricultural raw materials.

The consolidated financial statements of the AGRANA Group for 2020|21 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).

1. Segment information

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

The AGRANA Group has the three reportable segments Sugar, Starch and Fruit, which correspond to its strategic businesses. The segments differ in terms of their product portfolios, production technologies, raw material procurement, and sales strategies, and are managed separately. 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 before exceptional items and results of equity-accounted joint ventures", which is a key performance indicator included 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 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 Fruit Starch Sugar dation Group
2020 21
Total revenue 1,167,600 831,867 588,559 (41,042) 2,546,984
Inter-segment revenue (1,029) (9,975) (30,038) 41,042 0
Revenue 1,166,571 821,892 558,521 0 2,546,984
EBITDA 94,034 92,117 5,068 0 191,219
Depreciation, amortisation and
impairment of property, plant and
equipment and intangibles1 (41,152) (46,715) (30,239) 0 (118,106)
Operating profit/(loss) before exceptional items
and results of equity-accounted joint ventures 52,882 45,402 (25,171) 0 73,113
Exceptional items (11,723) 0 (212) 0 (11,935)
Share of results of equity-accounted joint ventures 0 19,400 (1,887) 0 17,513
Operating profit/(loss) [EBIT] 41,159 64,802 (27,270) 0 78,691
Segment assets 1,160,672 709,699 1,676,687 (1,074,324) 2,472,734
Segment equity 416,679 373,461 890,599 (351,642) 1,329,097
Segment liabilities 743,993 336,238 786,088 (722,682) 1,143,637
Consoli
Consoli
€000 Fruit Starch Sugar dation Group
€000 Fruit Starch Sugar dation Group
Purchases of property, plant and
Purchases of property, plant and
equipment and intangibles1 34,185 22,199 15,905 0 72,289
equipment and intangibles1 34,185 22,199 15,905 0 72,289
Purchases of non-current financial assets 1,273 0 2,072 0 3,345
Purchases of non-current financial assets 1,273 0 2,072 0 3,345
Total capital expenditure 35,458 22,199 17,977 0 75,634
Total capital expenditure 35,458 22,199 17,977 0 75,634
Carrying amount of
Carrying amount of
equity-accounted joint ventures 0 52,893 19,225 0 72,118
equity-accounted joint ventures 0 52,893 19,225 0 72,118
Number of employees
Number of employees
(average full-time equivalents) 5,695 1,149 2,003 0 8,847
(average full-time equivalents) 5,695 1,149 2,003 0 8,847
2019 202
2019 202
Total revenue 1,186,347 816,802 536,313 (58,730) 2,480,732
Total revenue 1,186,347 816,802 536,313 (58,730) 2,480,732
Inter-segment revenue (890) (9,805) (48,035) 58,730 0
Inter-segment revenue (890) (9,805) (48,035) 58,730 0
Revenue 1,185,457 806,997 488,278 0 2,480,732
Revenue 1,185,457 806,997 488,278 0 2,480,732
EBITDA 101,090 93,885 (11,910) 0 183,065
EBITDA 101,090 93,885 (11,910) 0 183,065
Depreciation, amortisation and
Depreciation, amortisation and
impairment of property, plant and
impairment of property, plant and
equipment and intangibles1 (43,088) (35,068) (31,773) 0 (109,929)
equipment and intangibles1 (43,088) (35,068) (31,773) 0 (109,929)
Operating profit/(loss) before exceptional items
Operating profit/(loss) before exceptional items
and results of equity-accounted joint ventures 58,002 58,817 (43,683) 0 73,136
and results of equity-accounted joint ventures 58,002 58,817 (43,683) 0 73,136
Exceptional items (2,070) 0 (20,854) 0 (22,924)
Exceptional items (2,070) 0 (20,854) 0 (22,924)
Share of results of equity-accounted joint ventures 0 16,341 386 0 16,727
Share of results of equity-accounted joint ventures 0 16,341 386 0 16,727
Operating profit/(loss) [EBIT] 55,932 75,158 (64,151) 0 66,939
Operating profit/(loss) [EBIT] 55,932 75,158 (64,151) 0 66,939
Segment assets 1,213,312 716,847 1,684,419 (1,085,245) 2,529,333
Segment assets 1,213,312 716,847 1,684,419 (1,085,245) 2,529,333
Segment equity 436,274 371,663 910,726 (351,642) 1,367,021
Segment equity 436,274 371,663 910,726 (351,642) 1,367,021
Segment liabilities 777,038 345,184 773,693 (733,603) 1,162,312
Segment liabilities 777,038 345,184 773,693 (733,603) 1,162,312
Purchases of property, plant and
Purchases of property, plant and
equipment and intangibles1 56,495 73,609 19,557 0 149,661
equipment and intangibles1 56,495 73,609 19,557 0 149,661
Purchases of non-current financial assets 506 400 8,018 0 8,924
Purchases of non-current financial assets 506 400 8,018 0 8,924
Total capital expenditure 57,001 74,009 27,575 0 158,585
Total capital expenditure 57,001 74,009 27,575 0 158,585
Carrying amount of
Carrying amount of
equity-accounted joint ventures 0 58,434 18,485 0 76,919
equity-accounted joint ventures 0 58,434 18,485 0 76,919
Number of employees
Number of employees
(average full-time equivalents) 6,194 1,087 2,061 0 9,342
(average full-time equivalents) 6,194 1,087 2,061 0 9,342

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

Exceptional items in the Fruit segment, at a net expense of € 11,723 thousand (prior year: net expense of € 2,070 thousand), concerned a cost reduction programme, a property, plant and equipment write-down in Egypt, two plant closures in Poland and Hungary, and expenses for a product complaint in Europe (prior year: regional restructuring measures and exceptional staff cost effects). In the Sugar segment, the net exceptional items expense in the 2020|21 financial year was € 212 thousand. The prior year's net exceptional items expense was restated by an expense of € 20,111 thousand to a revised total net exceptional items expense of € 20,854 thousand, due to an error correction under IAS 8 as a result of impairment losses on goodwill. Exceptional items in the Fruit segment, at a net expense of € 11,723 thousand (prior year: net expense of € 2,070 thousand), concerned a cost reduction programme, a property, plant and equipment write-down in Egypt, two plant closures in Poland and Hungary, and expenses for a product complaint in Europe (prior year: regional restructuring measures and exceptional staff cost effects). In the Sugar segment, the net exceptional items expense in the 2020|21 financial year was € 212 thousand. The prior year's net exceptional items expense was restated by an expense of € 20,111 thousand to a revised total net exceptional items expense of € 20,854 thousand, due to an error correction under IAS 8 as a result of impairment losses on goodwill.

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 € 722,682 thousand (prior year: € 733,603 thousand) and equity capital consolidation of € 351,642 thousand (prior year: € 351,642 thousand). 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 € 722,682 thousand (prior year: € 733,603 thousand) and equity capital consolidation of € 351,642 thousand (prior year: € 351,642 thousand).

Excluding goodwill. 1 Excluding goodwill.

2 The prior year data have been restated under IAS 8. Further information is provided on page 114. 2 The prior year data have been restated under IAS 8. Further information is provided on page 114. 109

1.2. Segmentation by region

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

Revenue €000 2020 21 2019 20
Austria 1,616,931 1,406,166
Hungary 7,580 41,126
Romania 27,792 95,944
Rest of EU 262,856 314,790
EU-27 1,915,159 1,858,026
Rest of Europe (Russia, Serbia, Turkey, Ukraine) 97,454 111,188
Other foreign countries 534,371 511,518
Total 2,546,984 2,480,732

The revenue of the Eastern European companies amounted to € 173,616 thousand (prior year: € 339,338 thousand), or about 6.8% (prior year: 13.7%) of total revenue. The countries defined as Eastern Europe are Hungary, Slovakia, Czech Republic, Romania, Bulgaria, Poland, Russia, Ukraine, Turkey and Serbia.

Purchases of property, plant and equipment and intangibles1 €000 2020 21 2019 20
Austria 35,362 90,750
Hungary 3,327 5,717
Romania 2,941 3,013
Rest of EU 11,551 21,737
EU-27 53,181 121,217
Rest of Europe (Russia, Serbia, Turkey, Ukraine) 2,267 7,739
Other foreign countries 16,841 20,705
Total 72,289 149,661
Carrying amount of property, plant and equipment and intangibles1 €000 2019 20
Austria 509,738 546,309
Hungary 55,924 62,945
Romania 36,576 38,072
Rest of EU 108,973 115,155
EU-27 711,211 762,481
Rest of Europe (Russia, Serbia, Turkey, Ukraine) 22,552 29,272
Other foreign countries 138,714 154,258
Total 872,477 946,011

2. Basis of preparation

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

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

In the 2020|21 financial year, the following standards and interpretations became effective (i.e., their application became mandatory) for the first time:

Standard Issued
by the IASB
Adopted
by the EU
IAS 1 Presentation of Financial Statements (amendment) 31 Oct 2018 29 Nov 2019
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
(amendment) 31 Oct 2018 29 Nov 2019
IAS 39 Financial Instruments: Recognition and Measurement (amendment) 26 Sep 2019 15 Jan 2020
IFRS 3 Business Combinations (amendment) 22 Oct 2018 21 Apr 2020
IFRS 7 Financial Instruments: Disclosures (amendment) 26 Sep 2019 15 Jan 2020
IFRS 9 Financial Instruments (amendment) 26 Sep 2019 15 Jan 2020
Various Amendments to references to the Conceptual Framework for Financial
Reporting 29 Mar 2018 29 Nov 2019

The amendments to the standards presented above had no material impacts on the presentation of AGRANA's financial position, results of operations and cash flows.

The following standards will become effective from the 2021|22 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 cited below. The information provided on the content of the standards depends on whether and to what extent they are relevant to AGRANA. Where accounting rules becoming effective in subsequent periods do not apply to AGRANA's situation, no information on their content is given.

Standard Content
and expected impact on AGRANA
Issued
by the IASB
Effective for
AGRANA from
financial year
Adopted
by the EU
IAS 1 Presentation of Financial Statements (amendment)
The changes clarify that the classification of liabilities as
current or non-current is based on whether there exists a
right to defer settlement of an obligation for at least twelve
months. The classification thus depends on the right at the
balance sheet date and is independent of management's
expectations and of events after the balance sheet date. With
23 Jan 2020
15 Jul 2020
2023 24 Not to date

its initial application deferred, the amendment may become

relevant from the 2023|24 financial year.

Standard Content
and expected impact on AGRANA
Issued
by the IASB
Effective for
AGRANA from
financial year
Adopted
by the EU
IAS 1 Presentation of Financial Statements (amendment)
The amendment requires that in future only the material
accounting policies be presented in the notes. To be material,
an accounting policy must be related to material transactions
or other events and there must be a reason for its inclusion in
the presentation. Going forward, this is intended to promote
company-specific rather than standardised disclosures.
AGRANA expects that the disclosures on accounting policies
will be reduced.
12 Feb 2021 2023 24 Not to date
IAS 8 Accounting policies, Changes in Accounting
Estimates and Errors (amendment)
The amendment clarifies the distinction between changes in
accounting policies and changes in accounting estimates. To
this end, it states that an accounting estimate always relates
to a measurement uncertainty regarding a monetary amount
in the financial statements. The amendment may become
relevant from the 2023 24 financial year.
12 Feb 2021 2023 24 Not to date
IAS 16 Property, Plant and Equipment (amendment)
The changes relate to proceeds before the intended use of
property, plant and equipment. The amendment prohibits
deducting from the cost of an item of property, plant and
equipment any proceeds arising from selling items produced
while bringing the asset into the location and condition
necessary for it to be capable of operating in the manner
intended by management. Instead, the proceeds from selling
such items, and the costs of producing them, must be included
in operating profit or loss. It is expected that the provisions
will ordinarily not be relevant to AGRANA.
14 May 2020 2022 23 Not to date
IAS 37 Provisions, Contingent Liabilities
and Contingent Assets (amendment)
The changes concern onerous contracts (cost of fulfilling a
contract) and specify that the cost of fulfilling a contract
comprises the costs that relate directly to the contract. These
may be either incremental costs of fulfilling the contract (e.g.,
direct labour, materials) or an allocation of other costs
directly related to fulfilling contracts (e.g., depreciation of
production equipment used in fulfilment). The provisions
become relevant when onerous contracts exist.
14 May 2020 2022 23 Not to date
Standard Content
and expected impact on AGRANA
Issued
by the IASB
Effective for
AGRANA from
financial year
Adopted
by the EU
IAS 39 Financial Instruments:
Recognition and Measurement (amendment)
27 Aug 2020 2021 22 13 Jan 2021
IFRS 4 Insurance Contracts (amendment)
IFRS 7 Financial Instruments: Disclosures (amendment)
IFRS 9 Financial Instruments (amendment)
IFRS 16 Leases (amendment)
The amendments result from Phase 2 of the Interest Rate
Benchmark Reform and relate to the impact on financial
reporting when existing benchmark rates are actually
replaced. The changes are not relevant to AGRANA.
IFRS 3 Business Combinations (amendment) 14 May 2020 2022 23 Not to date
The changes update the reference to the 2018 Conceptual
Framework, clarify the scope of IAS 37 or IFRIC 21 and add an
explicit statement that an acquirer does not recognise
contingent assets acquired in a business combination. The
amendments may become relevant, but are immaterial.
IFRS 4 Insurance Contracts (amendment) 25 Jun 2020 2021 22 15 Dec 2020
The standard is not relevant to AGRANA.
IFRS 16 Leases (amendment) 28 May 2020 2021 22 9 Oct 2020
The coronavirus pandemic has led to some lessors providing
rent concessions to lessees by deferring or waiving amounts
31 Mar 2021
that would otherwise be payable. The standard now contains
exemptions for this case, in particular specifying that it should
not be treated as a lease modification. In March 2021, the
IASB extended the application of the exemptions. As AGRANA
does not receive any rent concessions as a lessee, the changes
are not relevant.
IFRS 17 Insurance Contracts 18 May 2017 2023 24 Not to date
The standard is not relevant to AGRANA. 25 Jun 2020
Diverse Annual Improvements to IFRSs 14 May 2020 2022 23 Not to date
2018–2020 Cycle
No impacts on the presentation of the
financial position, results of operations and
cash flows are expected.

Restatement under IAS 8

In recent months, the Austrian Financial Reporting Enforcement Panel (OePR) conducted an audit pursuant to section 2 (1) 1 of the Austrian Financial Reporting Enforcement Act (event-driven audit) of the consolidated financial statements and Group management report for the year ended 29 February 2020 and the interim financial report for the first half of the 2019|20 financial year. The audit was prompted by doubts about the impairment test performed under IAS 36 in the Sugar segment, including the presentation in the consolidated financial statements for the year ended 29 February 2020 and in the interim financial report for the first half of the 2019|20 financial year, in particular the estimation of future cash flows.

The OePR concluded that the impairment test performed for the Sugar cash-generating unit was based on cash flow projections that did not reflect reasonable and supportable assumptions in accordance with IAS 36.33 (a) which represent management's best estimate of the economic conditions. In particular, it concluded that in the budgeting of sales prices, the greater weight was not given to external evidence as required by the last sentence of IAS 36.33(a). The recoverability of the goodwill of € 20.1 million allocated to the cash-generating unit could therefore not be demonstrated. As a result, earnings in the 2019|20 financial year and shareholders' equity at 29 February 2020 had been overstated. In preparing those consolidated financial statements for the year ended 29 February 2020, AGRANA itself had performed sensitivity analyses with respect to lower sales prices in order to demonstrate recoverability. In doing so, it had been assumed that beet farmers would grow the same or higher quantities of sugar beet after the current contracts expired, without the premium for beet cultivation being maintained that was agreed at the time. In view of the fact that, without the agreements then in force, it would not have been possible to contract sufficient beet production area in the past, the assumption of increasing or constant cultivation area in the face of falling beet prices was found by the OePR to be neither reasonable nor justifiable and not supported by recent experience. The recoverability at constant sales prices could therefore not be demonstrated. The error was corrected retrospectively in accordance with IAS 8.42 by restating the affected items in the prior year's financial statements. This also resulted in corrections to the interim consolidated financial statements published in the 2020|21 financial year.

The effects of the restatement under IAS 8.42 on the consolidated balance sheet and income statement are presented in the following table:

At At
29 Feb 2020 IAS 8 29 Feb 2020
€000 (as published) restatement (restated)
ASSETS
Intangible assets 275,108 (20,111) 254,997
Property, plant and equipment 1,056,817 0 1,056,817
Non-current assets 1,331,925 (20,111) 1,311,814
Current assets 1,217,519 0 1,217,519
Total assets 2,549,444 (20,111) 2,529,333
EQUITY AND LIABILITIES
Equity 1,387,132 (20,111) 1,367,021
Non-current liabilities 565,291 0 565,291
Current liabilities 597,021 0 597,021
Total equity and liabilities 2,549,444 (20,111) 2,529,333
Depreciation, amortisation and impairment losses (110,333) (20,111) (130,444)
Operating profit [EBIT] 87,050 (20,111) 66,939
Profit before tax 69,859 (20,111) 49,748
Profit for the period 51,292 (20,111) 31,181
Attributable to shareholders of the parent 48,162 (20,111) 28,051
Earnings per share under IFRS (basic and diluted) € 0.77 € (0.32) € 0.45

3. Scope of consolidation

The consolidated financial statements include, by full consolidation, all domestic and foreign companies controlled by AGRANA Beteiligungs-AG (i.e., all subsidiaries), except where the subsidiary's effect on the Group's financial position, results of operations and cash flows is immaterial. Control exists when AGRANA Beteiligungs-AG has the power to participate in positive and negative variable returns of a company (an investee) and 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, 58 companies besides the parent were fully consolidated in the Group financial statements (prior year: 61 companies) and 13 companies were included using the equity method (prior year: 13 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 2021

Equity interest Equity interest
28 Feb 2021 29 Feb 2020
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 100.00% 100.00%
AGRANA BIH Holding GmbH Vienna Austria 75.00% 75.00%
AGRANA BUZAU S.r.l. Buzău Romania 100.00% 100.00%
AGRANA d.o.o.2 Brčko Bosnia and 75.00%
Herzegovina
AGRANA Fruit Algeria Holding GmbH Vienna Austria 55.00% 55.00%
AGRANA Fruit Argentina S.A. Buenos Aires Argentina 100.00% 100.00%
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%
Importação e Exportação Ltda.
AGRANA Fruit Dachang Co., Ltd. Dachang China 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 Pune India 100.00% 100.00%
AGRANA Fruit Istanbul Istanbul Turkey 100.00% 100.00%
Gida Sanayi ve Ticaret A.S.
AGRANA Fruit (Jiangsu) Company Limited Changzhou China 100.00% 100.00%
AGRANA Fruit Korea Co. Ltd. Seoul South Korea 100.00% 100.00%
AGRANA Fruit Latinoamerica Michoacán Mexico 100.00% 100.00%
S. de R.L. de C.V.
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%
Equity interest
28 Feb 2021
Equity interest
29 Feb 2020
Registered In
Name of company office Country Direct In
direct¹
Direct direct¹
AGRANA Group-Services GmbH Vienna Austria 100.00% 100.00%
AGRANA Internationale Verwaltungs Vienna Austria 98.91% 1.09% 98.91% 1.09%
und Asset-Management GmbH
AGRANA JUICE (XIANYANG) CO., LTD Xianyang City China 50.01% 50.01%
AGRANA Magyarország Értékesitési Kft. Budapest Hungary 87.65% 87.65%
Agrana Nile Fruits Processing SAE Qalyoubia Egypt 51.00% 51.00%
AGRANA Research & Innovation
Center GmbH
Vienna Austria 100.00% 100.00%
AGRANA Romania S.R.L. Bucharest Romania 100.00% 100.00%
AGRANA Sales & Marketing GmbH Vienna Austria 100.00% 100.00%
AGRANA Stärke GmbH Vienna Austria 98.91% 1.09% 98.91% 1.09%
AGRANA TANDAREI S.r.l.2 Ţăndărei Romania 100.00%
AGRANA Trading EOOD Sofia Bulgaria 100.00% 100.00%
AGRANA ZHG Zucker Handels GmbH3 Vienna Austria 100.00%
AGRANA Zucker GmbH Vienna Austria 98.91% 1.09% 98.91% 1.09%
AUSTRIA JUICE Germany GmbH (formerly AGRANA Bingen Germany 50.01% 50.01%
Juice Sales & Marketing GmbH)
AUSTRIA JUICE Germany GmbH3 Bingen Germany 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 87.65% 87.65%
Dirafrost FFI N. V. Lummen Belgium 100.00% 100.00%
Dirafrost Maroc SARL Larache Morocco 100.00% 100.00%
Financière Atys S.A.S. Mitry-Mory France 100.00% 100.00%
INSTANTINA Nahrungsmittel Entwicklungs
und Produktionsgesellschaft m.b.H.
Vienna Austria 66.67% 66.67%
Koronás Irodaház Szolgáltató
Korlátolt Felelösségü Társaság
Budapest Hungary 87.61% 87.61%
Magyar Cukorgyártó és Forgalmazó Zrt. Budapest Hungary 87.61% 87.61%
Moravskoslezské Cukrovary s.r.o. Hrušovany Czech Republic 100.00% 100.00%
Marroquin Organic International, Inc. Santa Cruz USA 100.00%
Österreichische Rübensamenzucht
Gesellschaft m.b.H.
Vienna Austria 86.00% 86.00%
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%
Slovenské Cukrovary s.r.o. Sereď Slovakia 100.00% 100.00%
SPA AGRANA Fruit Algeria4 Akbou Algeria 26.93% 26.93%
"YUBE" doo – u likvidaciji Požega Serbia 100.00% 100.00%
Equity interest
Equity interest
28 Feb 2021
28 Feb 2021
Equity interest
Equity interest
29 Feb 2020
29 Feb 2020
Registered
Registered
In
In
In
In
Name of company office Country Direct direct¹ Direct direct¹
Name of company office Country Direct direct¹ Direct direct¹
Non-consolidated subsidiaries
Non-consolidated subsidiaries
AGRANA Amidi srl Sterzing Italy 100.00% 100.00%
AGRANA Amidi srl Sterzing Italy 100.00% 100.00%
Reporting date: 28 Feb 2021 Equity: € 41.2 thousand Profit for the period: € 11.1 thousand
Reporting date: 28 Feb 2021 Equity: € 41.2 thousand Profit for the period: € 11.1 thousand
AGRANA Croatia d.o.o.2 Zagreb Croatia 100.00%
AGRANA Croatia d.o.o.2 Zagreb Croatia 100.00%
Liquidated in 2020 21
Liquidated in 2020 21
AGRANA Fruit Japan Co., Ltd. Tokyo Japan 100.00%
AGRANA Fruit Japan Co., Ltd. Tokyo Japan 100.00%
Reporting date: 28 Feb 2021 Equity: € 802.6 thousand Profit for the period: € 460.4 thousand
Reporting date: 28 Feb 2021 Equity: € 802.6 thousand Profit for the period: € 460.4 thousand
II. Joint ventures
II. Joint ventures
Equity-accounted joint ventures
Equity-accounted joint ventures
Beta Pura GmbH Vienna Austria 50.00% 50.00%
Beta Pura GmbH Vienna Austria 50.00% 50.00%
AGRANA-STUDEN group:
AGRANA-STUDEN group:
"AGRAGOLD" d.o.o.
"AGRAGOLD" d.o.o.
Brčko
Brčko
Bosnia and
Bosnia and
Herzegovina
Herzegovina

50.00%
50.00%

50.00%
50.00%
AGRAGOLD d.o.o. Zagreb Croatia 50.00% 50.00%
AGRAGOLD d.o.o. Zagreb Croatia 50.00% 50.00%
AGRAGOLD dooel Skopje
AGRAGOLD dooel Skopje
Skopje
Skopje
Northern
Northern
Macedonia
Macedonia

50.00%
50.00%

50.00%
50.00%
AGRAGOLD trgovina d.o.o. Ljubljana Slovenia 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 Albania sh.p.k. Tirana Albania 50.00% 50.00%
AGRANA-STUDEN Beteiligungs GmbH Vienna Austria 50.00% 50.00%
AGRANA-STUDEN Beteiligungs GmbH Vienna Austria 50.00% 50.00%
AGRANA-STUDEN Kosovo L.L.C. Pristina Kosovo 50.00% 50.00%
AGRANA-STUDEN Kosovo L.L.C. Pristina Kosovo 50.00% 50.00%
AGRANA Studen Sugar Trading GmbH Vienna Austria 50.00% 50.00%
AGRANA Studen Sugar Trading GmbH Vienna Austria 50.00% 50.00%
Company for trade and services Belgrade Serbia 50.00% 50.00%
Company for trade and services Belgrade Serbia 50.00% 50.00%
AGRANA-STUDEN Serbia d.o.o. Beograd
AGRANA-STUDEN Serbia d.o.o. Beograd
STUDEN-AGRANA Rafinerija Secera d.o.o.
STUDEN-AGRANA Rafinerija Secera d.o.o.
Brčko
Brčko
Bosnia and
Bosnia and
Herzegovina
Herzegovina

50.00%
50.00%

50.00%
50.00%
HUNGRANA group:
HUNGRANA group:
GreenPower Services Kft. Szabadegyháza Hungary 50.00% 50.00%
GreenPower Services Kft. Szabadegyháza Hungary 50.00% 50.00%
HUNGRANA Keményitö- és Szabadegyháza Hungary 50.00% 50.00%
HUNGRANA Keményitö- és Szabadegyháza Hungary 50.00% 50.00%
Isocukorgyártó és Forgalmazó Kft.
Isocukorgyártó és Forgalmazó Kft.

The number of companies that were fully consolidated or equity-accounted changed as follows in the 2020|21 financial year: The number of companies that were fully consolidated or equity-accounted changed as follows in the 2020|21 financial year:

Full
Full
consolidation
consolidation
Equity
Equity
method
method
At 1 March 2020 61 13
At 1 March 2020 61 13
Initial consolidation 1 0
Initial consolidation 1 0
Disposal –4 0
Disposal –4 0
At 28 February 2021 58 13
At 28 February 2021 58 13

In the first quarter of 2020|21 the fully consolidated companies AGRANA TANDAREI S.r.l., Ţăndărei, Romania, and AGRANA d.o.o., Brčko, Bosnia and Herzegovina, were liquidated. The derecognition of the net assets of the two companies did not have a material impact on the consolidated balance sheet and income statement. In the first quarter of 2020|21 the fully consolidated companies AGRANA TANDAREI S.r.l., Ţăndărei, Romania, and AGRANA d.o.o., Brčko, Bosnia and Herzegovina, were liquidated. The derecognition of the net assets of the two companies did not have a material impact on the consolidated balance sheet and income statement.

In the first half of 2020|21, the fully consolidated AGRANA ZHG Zucker Handels GmbH, Vienna, Austria, was merged into AGRANA Sales & Marketing GmbH, Vienna, Austria, and the fully consolidated AUSTRIA JUICE Germany GmbH, Bingen, Germany, was merged into AGRANA Juice Sales & Marketing GmbH, Bingen, Germany. AGRANA Juice Sales & Marketing GmbH as the absorbing entity in the latter merger was renamed AUSTRIA JUICE Germany GmbH. In the first half of 2020|21, the fully consolidated AGRANA ZHG Zucker Handels GmbH, Vienna, Austria, was merged into AGRANA Sales & Marketing GmbH, Vienna, Austria, and the fully consolidated AUSTRIA JUICE Germany GmbH, Bingen, Germany, was merged into AGRANA Juice Sales & Marketing GmbH, Bingen, Germany. AGRANA Juice Sales & Marketing GmbH as the absorbing entity in the latter merger was renamed AUSTRIA JUICE Germany GmbH.

Merged in 2020|21. 4 Disclosure under section 265 (2) UGB: The company is fully consolidated in the Group financial statements because management agreements give AGRANA a majority share of the voting rights. 4 Disclosure under section 265 (2) UGB: The company is fully consolidated in the Group financial statements because management agreements give AGRANA a majority share of the voting rights. 117

Total indirect ownership interest held by the Group. 1 Total indirect ownership interest held by the Group.

2 Liquidated in 2020|21.

2 Liquidated in 2020|21. 3 3 Merged in 2020|21.

On 1 March 2020, 100% of the shares of Marroquin Organic International, Inc. of Santa Cruz, California, USA, were acquired by AGRANA Stärke GmbH, Vienna; the new subsidiary was fully consolidated in the Group financial statements in the second quarter of 2020|21. The US company, with annual revenue of about € 20 million, distributes organic and GMO-free food ingredients and is an ideal fit for the execution of AGRANA's specialties strategy in the Starch segment.

The initial consolidation of Marroquin had the following effects on the AGRANA Group:

Carrying
amount at
€000 acquisition date
Non-current assets 3,527
Inventories 4,403
Receivables and other assets 2,279
Cash and cash equivalents 2,170
Total assets 12,379
Less non-current liabilities (10)
Less current liabilities (948)
Net assets (i.e., equity) 11,421
Negative goodwill (140)
Acquisition cost (all in cash) 11,281

Joint ventures

The information below represents the aggregated financial position and performance of the joint ventures. The joint ventures are listed on page 117.

AGRANA
STUDEN HUNGRANA Beta Pura
€000 group group GmbH Total
28 February 2021
Non-current assets 34,189 107,272 38,126 179,587
Inventories 23,724 53,493 5,152 82,369
Receivables and other assets 19,564 32,571 2,027 54,162
Cash, cash equivalents 4,819 969 0 5,788
Current assets 48,107 87,033 7,179 142,319
Total assets 82,296 194,305 45,305 321,906
Equity 24,061 104,817 15,293 144,171
Borrowings 594 299 18,636 19,529
Other liabilities 3,656 1,746 2,230 7,632
Non-current liabilities 4,250 2,045 20,866 27,161
Borrowings 43,355 49,010 5,843 98,208
Other liabilities 10,630 38,433 3,303 52,366
Current liabilities 53,985 87,443 9,146 150,574
Total equity and liabilities 82,296 194,305 45,305 321,906
Revenue 146,076 287,222 1,434 434,732
Depreciation, amortisation and impairment losses (2,744) (13,083) (1,673) (17,500)
Other (expense), net (141,738) (228,711) (5,038) (375,487)
Operating profit/(loss) [EBIT] 1,594 45,428 (5,277) 41,745
AGRANA
STUDEN
HUNGRANA Beta Pura
€000 group group GmbH Total
Interest income 71 0 0 71
Interest expense (565) (726) (381) (1,672)
Other finance (expense), net (538) (266) (22) (826)
Profit/(loss) before tax 562 44,436 (5,680) 39,318
Income tax (expense)/benefit (77) (5,635) 1,420 (4,292)
Profit/(loss) for the period 485 38,801 (4,260) 35,026
Other comprehensive income/(expense) 1,108 (7,882) 0 (6,774)
Total comprehensive income/(expense) for the period 1,593 30,919 (4,260) 28,252
AGRANA
STUDEN HUNGRANA Beta Pura
€000 group group GmbH Total
29 February 2020
Non-current assets 35,954 113,539 25,227 174,720
Inventories 22,519 50,906 0 73,425
Receivables and other assets 21,904 32,085 2,156 56,145
Cash, cash equivalents 3,348 4,922 6,755 15,025
Current assets 47,771 87,913 8,911 144,595
Total assets 83,725 201,452 34,138 319,315
Equity 22,467 115,898 15,408 153,773
Borrowings 759 785 12,002 13,546
Other liabilities 4,257 1,806 2 6,065
Non-current liabilities 5,016 2,591 12,004 19,611
Borrowings 40,821 53,578 52 94,451
Other liabilities 15,421 29,385 6,674 51,480
Current liabilities 56,242 82,963 6,726 145,931
Total equity and liabilities 83,725 201,452 34,138 319,315
Revenue 143,217 287,135 0 430,352
Depreciation, amortisation and impairment losses (3,032) (12,461) (2) (15,495)
Other (expense), net (139,051) (234,999) (762) (374,812)
Operating profit/(loss) [EBIT] 1,134 39,675 (764) 40,045
Interest income 132 0 0 132
Interest expense (578) (707) (27) (1,312)
Other finance income/(expense), net 879 (1,720) (43) (884)
Profit/(loss) before tax 1,567 37,248 (834) 37,981
Income tax (expense)/benefit (168) (4,565) 208 (4,525)
Profit/(loss) for the period 1,399 32,683 (626) 33,456
Other comprehensive income/(expense) 917 (8,420) 0 (7,503)
Total comprehensive income/(expense) for the period 2,316 24,263 (626) 25,953

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

€000 AGRANA
STUDEN
group
HUNGRANA
group
Beta Pura
GmbH
Total
28 February 2021
Equity 24,061 104,817 15,293 144,171
Of which attributable to AGRANA 12,030 52,409 7,647 72,086
Value change at time of transition from
proportionate consolidation to equity method (452) 484 0 32
Investments in equity-accounted joint ventures
(carrying amount) 11,578 52,893 7,647 72,118
Dividend attributable to AGRANA 0 21,000 0 21,000
AGRANA
STUDEN
group
HUNGRANA
group
Beta Pura
GmbH
Total
22,467 115,898 15,408 153,773
11,234 57,949 7,704 76,887
(452) 484 0 32
10,782 58,433 7,704 76,919
14,000
0 14,000 0

Non-controlling interests

The non-controlling interests of € 55,313 thousand (prior year: € 63,435 thousand) represented primarily the co-owners of the AUSTRIA JUICE group, at € 38,987 thousand (prior year: € 45,419 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 29 Feb
AUSTRIA JUICE group €000 2021 2020
Non-current assets 128,949 133,759
Current assets 172,308 191,605
Total assets 301,257 325,364
Non-current liabilities 5,596 5,807
Current liabilities 210,390 221,422
Total liabilities 215,986 227,229
Net assets 85,271 98,135
Revenue 214,227 214,204
Operating profit [EBIT] (4,653) 12,596
Profit before tax (9,314) 7,773
Income tax benefit/(expense) 801 (1,589)
(Loss)/profit for the period (8,513) 6,184
Other comprehensive (expense) (4,352) (921)
Total comprehensive (expense)/income
for the period
(12,865) 5,263
Net cash from operating activities 15,944 29,995
Net cash (used in) investing activities (8,414) (11,949)
Net cash (used in) financing activities (7,157) (21,770)
Net increase/(decrease) in cash and cash equivalents 373 (3,724)

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

AUSTRIA JUICE group €000 28 Feb
2021
29 Feb
2020
(Loss)/profit for the period (4,256) 3,092
Carrying amount of net assets 42,626 49,058
Measurement effect from business combination (3,639) (3,639)
Non-controlling interest in net assets 38,987 45,419

3.2. Balance sheet date

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

4. Consolidation methods

Acquisitions of companies that are fully consolidated are accounted for using the acquisition method in accordance with IFRS 3. Where a business combination entails the possible recognition of intangible assets not previously recognized in the separate financial statements of the acquired company, such as customer relationships, these are recognized only when the requirements under IFRS 3 for capitalisation are met. For acquisitions of a majority interest that is less than a 100% stake, 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 noncurrent assets or in inventories, intragroup balances are eliminated.

5. Currency translation

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

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
28 Feb 29 Feb
Currency 2021 2020 2020 21 2019 20
Albania ALL 122.74 125.92 122.62 126.14
Algeria DZD 131.59 134.73 133.30 136.85
Argentina ARS 68.43 44.56 68.43 44.56
Australia AUD 1.69 1.60 1.62 1.59
Bosnia and Herzegovina BAM 1.96 1.96 1.96 1.96
Brazil BRL 4.92 4.27 4.48 4.36
Bulgaria BGN 1.96 1.96 1.96 1.96
China CNY 7.67 7.63 7.73 7.79
Croatia HRK 7.47 7.43 7.42 7.42
Czech Republic CZK 25.39 25.60 25.58 25.69
Egypt EGP 17.05 19.95 18.36 20.68
Fiji FJD 2.44 2.42 2.42 2.45
Hungary HUF 337.57 315.96 328.05 320.22
Rate at reporting date Average rate for year
28 Feb 29 Feb
Currency 2021 2020 2020 21 2019 20
India INR 79.29 80.89 78.47 81.10
Mexico MXN 21.64 21.91 21.37 22.51
Morocco MAD 10.59 10.89 10.73 11.01
Northern Macedonia MKD 61.67 61.50 61.51 61.51
Poland PLN 4.34 4.31 4.29 4.28
Romania RON 4.81 4.74 4.75 4.67
Russia RUB 73.61 75.09 71.43 75.03
Serbia CSD 117.54 118.18 117.74 118.25
South Africa ZAR 17.10 15.95 16.25 15.78
South Korea KRW 1,324.98 1,281.07 1,308.56 1,292.87
Turkey TRY 6.83 6.07 6.45 5.94
Ukraine UAH 26.93 30.73 28.21 31.67
USA USD 1.10 1.14 1.11 1.17

6. Financial reporting in hyperinflationary economies

Financial statements of subsidiaries in hyperinflationary economies – in the financial year this was one subsidiary domiciled in Argentina – are adjusted in accordance with IAS 29. Before translation into the Group currency (the euro), non-monetary items of the balance sheet that are measured at cost or amortised cost are adjusted to reflect the price changes that occurred in the financial year, using a suitable price index to measure purchasing power. Monetary items in the balance sheet are not adjusted. All items in the statement of comprehensive income and all components of equity are also adjusted using appropriate price indices. Gains or losses on the net monetary position are reported as a separate line in finance income or expense, in the consolidated income statement.

The financial statements of the Argentine subsidiary were prepared based on the historical cost approach. Since the 2018|19 financial year these must be adjusted as a result of changes in the general purchasing power of the functional currency (the Argentine peso) and are thus stated in the measuring unit current at the balance sheet date. The prices used for the adjustment are the consumer prices published by Argentina's Instituto Nacional de Estadística y Censos, the National Institute of Statistics and Census. The price index at 28 February 2021 stood at 416.36 (29 February 2020: 295.34). The change in the index is shown in the following table:

Index change
2020 21 2019 20
3.3% 4.7%
1.5% 3.4%
1.5% 3.1%
2.2% 2.7%
1.9% 2.2%
2.7% 4.0%
2.8% 5.9%
3.8% 3.3%
3.2% 4.3%
4.0% 3.7%
4.0% 2.3%
3.7% 1.9%

7. Accounting policies

7.1. Intangible assets (including goodwill) and property, plant and equipment

Purchased intangible assets (other than goodwill) are capitalised at cost and amortised on a straight-line basis over their expected useful lives of between 5 and 15 years.

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.

Acquired items of property, plant and equipment are valued at cost of purchase and/or conversion, less straight-line 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 recognized 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.

Under IFRS 16, for all leases, the lessee generally recognises a right-of-use asset and a lease liability in the balance sheet, based on the present value of the outstanding lease payments. The present value is determined based on the current incremental borrowing rate, unless the interest rate implicit in the lease is available. The right-of-use asset is depreciated over the term of the lease. The unwinding of discount on the lease liability is performed using the effective interest method and the liability is amortised through lease payments; the resulting interest expenses are reported in finance expense. The right-of-use asset is subject to impairment testing in accordance with IAS 36 (Impairment of Assets). AGRANA does not apply IFRS 16 to leases of intangible assets. For assets of low value and for short-term leases, AGRANA elects not to capitalise the lease, and the expenses are recognised in other operating expenses.

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

These useful lives are reviewed annually and adjusted as required.

7.2. Government assistance

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

Government assistance to support capital expenditure is recognised as deferred income from the time of the binding award and deducted from the cost of the intangible assets and property, plant and equipment on a straight-line basis over the useful life of the allocated asset through profit or loss. Details are provided on page 146.

7.3. Financial instruments

The AGRANA Group distinguishes the following classes of financial instruments:

Financial assets

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

Financial liabilities

  • Bank loans and overdrafts, and other loans from non-Group entities
  • Liabilities to affiliated companies in the Südzucker group and to joint ventures
  • Lease liabilities
  • Trade payables
  • Financial other payables

Derivative financial instruments

  • Interest-rate derivatives
  • Currency derivatives
  • Commodity derivatives

Investment fund units and uncertificated securities (cooperative shares) in the balance sheet item "securities" are classified as at fair value through profit or loss and are measured at fair value on initial recognition. Equity instruments that are to be held for the long term are assigned to the category "fair value through other comprehensive income (no recycling)". Initial measurement is at fair value, including any transaction costs. Value changes of equity instruments are recognised outside profit or loss (after income tax) in a separate reserve item in equity. Investments in nonconsolidated subsidiaries are recognised at cost at the time of acquisition and classified as at "fair value through other comprehensive income (no recycling)". The fair value of investments in outside companies was determined on the basis of discounted future cash flows. Fair value was not determined for investments in non-consolidated subsidiaries, as the amount was immaterial to the AGRANA Group.

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

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 – either 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) and meet the requirements for hedge accounting under IFRS 9. In the latter case, the unrealised effective changes in value are recognised in other comprehensive income. If the hedged expected transaction leads to the subsequent recognition of a non-financial item (such as inventories), the amount accumulated in the "reserve for hedging instruments (cash flow hedges)" is included directly in the acquisition cost of the non-financial item at the time of its recognition. In all other cases, the accumulated amount is transferred to the income statement 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. Derivative financial instruments are classified as at fair value through profit or loss, except for derivatives with a hedging relationship to an underlying transaction. The latter are allocated to the category "fair value through other comprehensive income (hedging instruments)". More information on derivative financial instruments is provided from page 158.

Receivables

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 is allowed individually or on a portfolio basis. The portfolio-based impairment is determined using the simplified approach under IFRS 9. Under this approach, expected credit losses over the entire life of the asset are anticipated based on analysis of historical loss rates for different lengths of time past due. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors that affect customers' ability to pay receivables. The impairment is recognised in separate impairment allowance accounts. The face amounts of the receivables net of the necessary impairment allowance represent the fair values. Irrecoverable receivables are derecognised on an individual case-by-case basis. If the reasons for an impairment charge cease to apply, the impairment loss is reversed, to not more than the asset's historical cost. As the instruments in the item "other financial assets" are not subject to any particular concentrations of risk, and cash and

cash equivalents are with minor exceptions payable on demand, an expected impairment loss under IFRS 9 was not calculated for these assets.

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

Payables

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

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

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

7.4. Inventories

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

7.5. Emission allowances

AGRANA's CO2 emission rights represent the emission rights (EU Allowances, or EUA) issued in the EU Emissions Trading System and are accounted for in accordance with the provisions of IAS 38 (Intangible Assets), IAS 20 (Accounting for Government Grants and Disclosure of Government Assistance) and IAS 37 (Provisions, Contingent Liabilities and Contingent Assets). The EUAs, allocated free of charge or acquired for the respective calendar year, are intangible assets that are reported under other current assets. They are measured at cost, which is zero in the case of allowances allocated free of charge. If the actual emissions exceed the allocated EUAs, a provision for CO2 emissions is recognised as an expense. The provision is calculated by taking into account the cost incurred for purchased allowances or the market value of allowances at the measurement date.

7.6. Impairment

Assets (other than inventories and deferred tax assets) are tested at every balance sheet date for evidence of impairment. In addition, these assets are reviewed for impairment when there are indications of possible impairment. Goodwill and other intangible assets with an indefinite useful life are reviewed for impairment annually at 31 August, even when there is no indication of 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 fair value less costs of disposal. 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) 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.

7.7. Employee benefit obligations

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

The provisions for defined benefit pension, termination and long-service obligations are calculated using the projected unit credit method in accordance with IAS 19 (Employee Benefits), based on actuarial valuations. This involves determining the present value of the defined benefit obligation and comparing it to the fair value of plan assets at the balance sheet date. In the case of a deficit, a provision is recorded. 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 in other comprehensive income 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 in other comprehensive income 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 0.75% for the year under review (prior year: 0.80%).

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.

7.8. Other provisions

Other provisions are recognised where the following conditions are met: the AGRANA Group has a legal or constructive obligation to a third party as a result of a past event, the obligation is likely to lead to an outflow of resources, and 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 of collective agreements. Obligations for the payment of such service anniversary bonuses exist especially in Austria. 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.

7.9. Deferred taxes

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

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

When income and expenses are recognised in other comprehensive income, then so are the respective deferred tax assets and liabilities. 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.

7.10. Recognition of revenue and costs

Revenue represents the fair value of the consideration received or receivable for products and services sold in the course of ordinary business activities. In the AGRANA Group, revenue is recognised in accordance with the five-step model of IFRS 15, and generally at a point in time. Revenue is recognised when control of a product or service passes to a buyer. The timing of the transfer of control to the buyer is typically determined in accordance with INCOTERMS (International Commercial Terms), which govern the transfer of the risks and rewards incident to ownership. Revenue from services is recognised to the extent that they have been provided by the balance sheet date. For variable price agreements, revenue recognition is based on the expected final prices estimated on a contract-specific basis. Revenue is presented net of rebates, discounts and sales tax, and after eliminating intragroup sales. The costs of obtaining sales contracts predominantly have a short-term relationship to revenue and are expensed immediately. Under the usual industry payment terms, there are no financing terms to consider in revenue recognition.

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

Finance expense comprises the interest expense, similar expenses and transaction costs on debt financing and on lease liabilities; 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.

7.11. Critical assumptions and judgements

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

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

– The impairment testing of goodwill (carrying amount at 28 February 2021: € 241,781 thousand; at 29 February 2020: € 241,781 thousand), other intangible assets (carrying amount at 28 February 2021: € 12,818 thousand; at 29 February 2020: € 13,216 thousand) and property, plant and equipment (acquired and leased) (carrying amount at 28 February 2021: € 859,659 thousand; at 29 February 2020: € 932,795 thousand) is based on forward-looking assumptions. The determination of the recoverable amounts for the purpose of the impairment review involves several assumptions, such as regarding future net cash flows and the discount rate. The net cash flows are the amounts in the most current cash flow forecast for the cash-generating units (CGUs) for the next five years (being the most current at the time of the regular impairment test date of 31 August).

The end of the event-driven audit by the OePR was a triggering event for the goodwill impairment test as at 28 February 2021. The planning calculations used as a basis for it were the most recent available, in which the possible effects of the Covid-19 pandemic were taken into account. These planning calculations were approved by the Management Board, but not yet by the Supervisory Board.

At 28 February 2021, the carrying amounts of the CGUs were compared with the updated values in use and the WACC1 updated to this date was applied. As no long-term negative impacts on the business activities of the AGRANA Group were identified at the date of preparation of these consolidated financial statements at 22 April 2021, the material effects of the coronavirus crisis are limited to the first planning year of the determination of value in use. Depending on the actual effects and further trajectory of the Covid-19 crisis, negative impacts on the 2021|22 financial year or on subsequent years may arise, such as impairment of goodwill and property, plant and equipment.

The forecast uncertainty caused by the volatility of the markets was addressed by taking into account alternative planning scenarios. The planning scenarios differ mainly in the assumptions as to revenue growth and the EBIT margin up to the terminal value stage:

CAGR of
Fruit CGU Weighting revenue p.a.
(basis: 2020 21)
EBIT margin
in 2025 26
Base case 65% 4.8% 5.7%
Downside case – moderate 25% 4.5% 5.5%
Downside case – progressive 10% 4.2% 5.2%
CAGR of
Starch CGU Weighting revenue p.a.
(basis: 2020 21)
EBIT margin
in 2025 26
Base case 65% 2.9% 6.2%
Downside case 35% –4.4% 6.1%

In neither of the CGUs would an impairment of the carrying amount of goodwill result under the planning scenarios.

The discount rate before tax varies by industry, company risk level and specific market environment; in the financial year it ranged from 6.80% to 7.56% (prior year: 4.65% to 6.81%).

An increase of 0.5 percentage points in WACC would not lead to an impairment.

  • The relevant value drivers for the impairment test of property, plant and equipment in the Sugar Sales & Production CGU were identified as sugar beet planting acreages and sugar prices, and sensitivities were calculated on these. A decrease of 10% in the acreage assumed in the five-year-plan would not result in an excess of the carrying amount over the recoverable amount. Likewise, a reduction of 3.4% in the sales prices used in the five-year-plan would not lead to an excess of the carrying amount over the recoverable amount.
  • Financial instruments for which no active market exists are reviewed for impairment by using alternative discountingbased valuation methods. The inputs used for the determination of fair value are based in part on assumptions concerning the future.
  • The measurement of existing retirement and termination benefit obligations (carrying amount at 28 February 2021: € 67,786 thousand; at 29 February 2020: € 73,401 thousand) involves assumptions regarding the discount rate, age at retirement, life expectancy, employee turnover and future increases in pay and benefits.
  • The sensitivity analysis below is based on varying one assumption at a time with the other assumptions remaining unchanged from the original calculation. Potential correlation effects between assumptions are thus not taken into account. The changes in assumptions would have the following effects on the present values of the obligations stated in note 23a:
Pension benefits Termination benefits
28 Feb 29 Feb 28 Feb 29 Feb
€000 2021 2020 2021 2020
Change in actuarial assumptions
Discount rate
+0.5 percentage points (2,537) (2,676) (1,664) (1,920)
–0.5 percentage points 2,790 2,951 1,785 2,062
Wage and salary increase
+0.25 percentage points 54 67 851 980
–0.25 percentage points (53) (66) (820) (945)
Pension increase
+0.25 percentage points 1,267 1,291
–0.25 percentage points (1,215) (1,238)
Life expectancy
Increase by 1 year 4,594 4,189
Decrease by 1 year (4,885) (4,379)
  • The recognition of deferred tax assets (carrying amount at 28 February 2021: € 16,440 thousand; at 29 February 2020: € 14,175 thousand) is based on the assumption that sufficient taxable profit will be earned over the five-year planning horizon to realise them.
  • The off-balance sheet obligations from financial guarantees and from other contingent liabilities, and any reductions in these obligations, are regularly reviewed as to whether they require recognition in the balance sheet.
  • In determining the amount of other provisions (carrying amount at 28 February 2021: € 46,874 thousand; at 29 February 2020: € 50,545 thousand), management exercises judgement as to whether AGRANA is likely to incur an outflow of resources from the obligation concerned and whether the amount of the obligation can be estimated reliably.
  • The HUNGRANA group, AGRANA STUDEN group and Beta Pura GmbH were classified as joint ventures under 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 its subsidiaries. As a result of the underlying contracts and arrangements, AGRANA exercises control over these companies and fully consolidates them in the Group accounts.

8. Notes to the consolidated income statement

8.1. Revenue Note (1)

AGRANA is a globally operating processor of agricultural raw materials, with its Fruit, Starch and Sugar segments manufacturing high-quality foods and many intermediate products for the downstream food industry as well as for nonfood applications.

Revenue in the Fruit segment is generated with fruit preparations for the dairy, bakery, ice-cream and food service industries and with fruit juice concentrates, such as apple and berry juice concentrates, as well as with not-fromconcentrate juices and fruit wines, beverage bases and aromas.

In the Starch segment, AGRANA processes and refines primarily corn (maize), wheat and potatoes into premium starch products for the food and beverage industry, the paper, textile, cosmetics and building materials sectors and other nonfood industries. The starch operations also produce fertilisers and high-quality animal feeds. The production of bioethanol as well is part of the Starch segment.

The Sugar segment 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. A wide range of sugars and sugar specialty products is also marketed to consumers, through food retailers. In addition, in the interest of optimal utilisation of its agricultural raw materials, the Sugar segment produces a large number of fertilisers and feedstuffs for use in agriculture and animal husbandry.

In all three business segments, revenue is recognised after control of the product passes to the customer, and almost always at a point in time. All supply contracts contain Incoterms, such as DDP, DAP and EXW, which govern the transfer of control to the customer and thus establish the timing of revenue recognition. The payment term is usually up to 90 days. Of AGRANA's revenue, 94.87% (prior year: 95.10%), or the great majority, is generated with products manufactured by the Group itself. AGRANA's revenue from services, at 0.22% of the total (prior year: 0.22%), and from the reselling of merchandise, at 4.91% (prior year: 4.68%), is of minor significance as a percentage of total revenue.

Within the business segments, revenue is allocated to regions based on the location of the companies' registered office.

€000 2020 21 2019 20
Fruit segment
EU-27 554,441 562,751
Europe non-EU 97,454 111,188
North America 309,785 305,205
South America 24,179 31,211
Asia 118,821 109,560
Africa 24,639 26,064
Australia and Oceania 37,252 39,478
1,166,571 1,185,457
Starch segment
EU-27 802,197 806,997
North America 19,695 0
821,892 806,997
Sugar segment
EU-27 558,521 488,278
558,521 488,278
Total 2,546,984 2,480,732

The Group's top ten customers accounted for 30.1% (prior year: 31.1%) of consolidated revenue. One AGRANA customer accounted for 12.4% (prior year: 13.4%) of consolidated revenue. No other customer represented more than 10% of revenue.

8.2. Changes in inventories and own work capitalised Note (2)

€000 2020 21 2019 20
Changes in inventories of finished and unfinished goods (14,529) 64,764
Own work capitalised 2,820 1,898

The change in inventories of finished and unfinished goods amounted to a net reduction of € 14,529 thousand (prior year: net increase of € 64,764 thousand), resulted from a decrease in the Sugar segment of € 17,985 thousand (prior year: increase of € 27,462 thousand), a decrease in the Fruit segment of € 8,130 thousand (prior year: increase of € 25,467 thousand) and an increase in the Starch segment of € 11,586 thousand (prior year: increase of € 11,835 thousand).

The changes in inventories included an exceptional items expense in the Fruit segment of € 859 thousand from a product complaint in Europe.

8.3.
Other operating income
€000
2020 21 2019 20
Income from
Currency translation gains 11,537 6,329
Adjustment of payables from the acquisition of subsidiaries 5,951 5,437
Insurance benefits and payments for damages 2,967 2,126
Derivatives 1,817 2,724
Exceptional items 1,617 0
Research incentives 1,400 1,106
Release of provisions for impairment of trade receivables 644 816
Disposal of non-current assets other than financial assets 515 601
Rent and leases 513 518
Beet and pulp cleaning, transport and handling 367 287
Recognition of negative goodwill resulting from a business combination 140 0
Services rendered to third parties 103 96
Net proceeds from disposal of AGRANA Fruit Fiji Pty Ltd. 0 568
Other items 15,393 17,063
Total 42,964 37,671

Within other operating income, "other items" represent, among other things, revenue from the pass-through of costs for raw materials, consumables and services. The income side of exceptional items in the year under review consisted of income from the release of a provision in connection with a legal dispute, and from tax refunds in Romania, both in the Sugar segment.

8.4. Cost of materials Note (4)

Note (3)

€000 2020 21 2019 20
Costs of
Raw materials 1,158,798 1,159,366
Consumables and goods purchased for resale 535,260 526,247
Purchased services 65,174 73,664
Total 1,759,232 1,759,277

8.5. Staff costs Note (5)

€000 2020 21 2019 20
Wages and salaries 274,844 270,091
Social security contributions, retirement benefit expenses and other staff costs 70,450 71,569
Total 345,294 341,660

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 € 641 thousand (prior year: € 1,081 thousand) is included in net financial items. The current and past service costs are included in staff costs.

In the 2020|21 financial year an expense of € 19,591 thousand (prior year: € 19,027 thousand) was recognised for contributions to government pension plans.

€ 1,501 thousand of contributions to a defined contribution termination benefit fund were recognised in the income statement for the year (prior year: € 1,386 thousand).

Staff costs included exceptional expenses, which related largely to regional restructuring measures in the Fruit segment. The net exceptional items expense reflected in staff costs amounted to € 4,602 thousand (prior year: € 1,110 thousand).

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

By employee category 2020 21 2019 20
Wage-earning staff 5,972 6,456
Salaried staff 2,779 2,793
Apprentices 96 93
Total 8,847 9,342
By region 2020 21 2019 20
Austria 2,414 2,361
Hungary 424 465
Romania 537 566
Rest of EU 1,520 1,559
EU-27 4,895 4,951
Rest of Europe (Russia, Serbia, Turkey, Ukraine) 1,157 1,296
Other foreign countries 2,795 3,095
Total 8,847 9,342

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

By employee category 2020 21 2019 20
Wage-earning staff 341 324
Salaried staff 205 197
Total 546 521

8.6. Depreciation, amortisation and impairment Note (6)

€000 Total Amorti
sation,
depre
ciation
Impair
ment
losses
Reversal
of
impair
ment
losses
2020 21
Intangible assets 3761 3761 0 0
Property, plant and equipment – acquired 108,719 108,784 134 (199)
Property, plant and equipment – leased 5,626 5,626 0 0
Recognised in operating profit before exceptional items 118,106 118,171 134 (199)
Exceptional items 2,042 0 2,042 0
Recognised in operating profit [EBIT] 120,148 118,171 2,176 (199)
2019 201
Intangible assets 3,663 3,662 1 0
Property, plant and equipment – acquired 100,427 98,805 1,650 (28)
Property, plant and equipment – leased 5,839 5,839 0 0
Recognised in operating profit before exceptional items 109,929 108,306 1,651 (28)
Exceptional items 20,515 0 20,515 0
Recognised in operating profit [EBIT] 130,444 108,306 22,166 (28)

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

€000 Impair
ment
losses
Reversal
of impair
ment
losses
2020 21
Fruit segment 2,042 0
Starch segment 0 0
Sugar segment 134 (199)
Group 2,176 (199)
2019 201
Fruit segment 404 0
Starch segment 8 0
Sugar segment 21,754 (28)
Group 22,166 (28)

In the year under review, impairment recognised in operating profit before exceptional items related to the shutdown of a production line in Romania; in the prior year, it concerned the redimensioning of a storage and packaging facility in Hungary; both events were in the Sugar segment.

Exceptional items in impairment losses related to the impairment of assets in the compounds business in Egypt in the Fruit segment. In the prior year, the exceptional items in impairment charges were due to the restructuring in Serbia in the Fruit segment and an error correction in accordance with IAS 8 due to goodwill impairment in the Sugar segment.

8.7. Other operating expenses Note (7)

€000 2020 21 2019 20
Selling and freight costs 154,054 149,766
Operating and administrative expenses 88,025 103,353
Currency translation losses 11,114 8,794
Advertising expenses 7,324 10,140
Other taxes 6,334 6,626
Exceptional items 6,048 1,299
Rent and lease expenses 6,017 5,487
Derivatives 2,264 3,007
Damage payments 1,661 3,334
Research and development expenses (external) 832 892
Losses on disposal of non-current assets 174 510
Other items 8,540 10,264
Total 292,387 303,472

Internal and external R&D costs totalled € 18,416 thousand (prior year: € 18,901 thousand).

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

Within other operating expenses, exceptional items related mainly to plant closures in Poland and Hungary and a product complaint in Europe in the Fruit segment (prior year: regional restructuring measures in the Fruit segment and expenses for legal disputes in the Sugar segment).

The expenses incurred in the financial year for the external auditor, PwC Wirtschaftsprüfung GmbH, were € 467 thousand (prior year: € 425 thousand). Of this total, € 465 thousand (prior year: € 420 thousand) related to the audit of the consolidated financial statements (including the audit of the separate financial statements of individual subsidiaries), € 2 thousand (prior year: € 5 thousand) was for other assurance services, and € 0 thousand (prior year: € 0 thousand) represented other non-audit services.

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

The share of results of equity-accounted joint ventures of € 17,513 thousand (prior year: € 16,727 thousand) included the Group's share of the profits or losses of the joint ventures in the HUNGRANA group, the AGRANA-STUDEN group and Beta Pura GmbH.

8.9. Finance income Note (9)

€000 2020 21 2019 20
Interest income 802 1,137
Currency translation gains 6,537 11,489
Income of non-consolidated subsidiaries and outside companies 22 18
Gains on derivatives 17,225 9,610
Miscellaneous finance income 310 597
Total 24,896 22,851

Interest income by segment was as follows:

8.10. Finance expense

€000 2020 21 2019 20
Fruit segment 534 664
Starch segment 27 2
Sugar segment 241 471
Total 802 1,137

Note (10)

€000 2020 21 2019 20
Interest expense 8,138 9,329
Net interest on provisions for pensions and termination benefits 641 1,081
Currency translation losses 16,571 13,340
Losses on derivatives 13,306 12,601
Loss on net monetary position under IAS 29 837 912
Miscellaneous finance expense 3,899 2,779
Total 43,392 40,042

Interest expense by segment was as follows:

€000 2020 21 2019 20
Fruit segment 2,139 2,606
Starch segment 231 259
Sugar segment 5,768 6,464
Group 8,138 9,329

Interest expense includes interest of € 1,025 thousand on lease liabilities (prior year: € 1,029 thousand) and the interest component from the discounting of the non-current obligation for long-service awards, at € 84 thousand (prior year: € 144 thousand).

Net currency translation differences on financing activities amounted to a loss of € 10,034 thousand (prior year: loss of € 1,851 thousand). This was composed of a realised loss of € 7,840 thousand (prior year: realised loss of € 5,627 thousand) and an unrealised loss of € 2,194 thousand (prior year: unrealised gain of € 3,776 thousand). The net translation loss was attributable primarily to foreign currency financing in Mexico, Romania, Hungary and Ukraine.

8.11. Income tax expense Note (11)

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

€000 2020 21 2019 20
Current tax expense 9,326 20,170
Of which Austrian (3,259) 4,452
Of which foreign 12,585 15,718
Deferred tax benefit (4,116) (1,603)
Of which Austrian 256 (510)
Of which foreign (4,372) (1,093)
Total tax expense 5,210 18,567
Of which Austrian (3,003) 3,942
Of which foreign 8,213 14,625

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

€000 2020 21 2019 20
Increase in deferred tax assets in the consolidated balance sheet 2,266 1,866
Decrease in deferred tax liabilities in the consolidated balance sheet 2 1,052
Total change in deferred taxes 2,268 2,918
Of which recognised in the income statement 4,116 1,603
Of which recognised in other comprehensive income (1,587) 1,080
Of which from currency translation/hyperinflation/other (273) 235
Of which changes in scope of consolidation 12 0

In order to reconcile the amount in other comprehensive income to that in the statement of changes in equity, the tax effects of equity-accounted joint ventures and of their proportionate non-controlling interests – a total amount of € 188 thousand – must be deducted from the other comprehensive income of € 1,587 thousand presented in the table above.

Reconciliation of profit before tax to income tax expense

€000 2020 21 2019 201
Profit before tax 60,195 49,748
Standard Austrian tax rate 25% 25%
Nominal tax expense at standard Austrian rate 15,049 12,437
Tax effect of:
Different tax rates applied on foreign income (2,790) (512)
Restatement of prior year's amount, under IAS 8 0 5,028
Tax-exempt income and tax deductions,
including results of equity-accounted joint ventures (7,206) (7,442)
Non-temporary differences from consolidation measures (1,126) (118)
Non-tax-deductible expenses and additional tax debits 4,472 2,605
Effects from other taxes 2,770 2,730
Effects of tax loss carryforwards (2,551) 247
Non-recurring tax expenses (3,408) 3,592
Income tax expense 5,210 18,567
Effective tax rate 8.7% 37.3%

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

The Tax Reform Act of 2005 introduced a 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 Sales & Marketing GmbH, 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.

138

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. € 13,820 thousand (prior year: € 18,274 thousand) of potential tax assets were not recognised. These related to cumulative unused tax loss carryforwards of € 50,059 thousand (prior year: € 82,336 thousand). Of the unused tax loss carryforwards, € 44,732 thousand (prior year: € 48,932 thousand) can be carried forward indefinitely, € 1,069 thousand (prior year: € 20,242 thousand) expire in two to four years and € 4,258 thousand (prior year: € 13,162 thousand) expire in five to seven years. taxable profit is likely to be earned over the next five years to utilise the deferred tax assets. € 13,820 thousand (prior year: € 18,274 thousand) of potential tax assets were not recognised. These related to cumulative unused tax loss carryforwards of € 50,059 thousand (prior year: € 82,336 thousand). Of the unused tax loss carryforwards, € 44,732 thousand (prior year: € 48,932 thousand) can be carried forward indefinitely, € 1,069 thousand (prior year: € 20,242 thousand) expire in two to four years and € 4,258 thousand (prior year: € 13,162 thousand) expire in five to seven years.

At the balance sheet date the deferred tax assets and liabilities recognised in other comprehensive income amounted to a net asset of € 7,011 thousand (prior year: € 8,785 thousand). At the balance sheet date the deferred tax assets and liabilities recognised in other comprehensive income amounted to a net asset of € 7,011 thousand (prior year: € 8,785 thousand).

For temporary differences on investments in subsidiaries, deferred tax liabilities of € 191,933 thousand (prior year: € 199,259 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. For temporary differences on investments in subsidiaries, deferred tax liabilities of € 191,933 thousand (prior year: € 199,259 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.

8.12. Earnings per share Note (12)

2020 21 2019 201
Profit for the period attributable to shareholders
Profit for the period attributable to shareholders
of the parent (AGRANA Beteiligungs-AG)
€000
59,787 28,051
of the parent (AGRANA Beteiligungs-AG)
€000
Average number of shares outstanding
62,488,976
59,787 28,051
62,488,976
Average number of shares outstanding
62,488,976
Earnings per share under IFRS (basic and diluted)
0.96 62,488,976
0.45
Earnings per share under IFRS (basic and diluted)

Dividend per share
0.96
0.852
0.45
0.77
Dividend per share
0.852 0.77

Subject to the Annual General Meeting's approval of the proposed allocation of profit for the 2020|21 financial year, AGRANA Beteiligungs-AG will pay a dividend of € 53,116 thousand (prior year: € 48,117 thousand). Subject to the Annual General Meeting's approval of the proposed allocation of profit for the 2020|21 financial year, AGRANA Beteiligungs-AG will pay a dividend of € 53,116 thousand (prior year: € 48,117 thousand).

1 The prior year data have been restated under IAS 8. Further information is provided on page 114. 2 Proposal to the Annual General Meeting. 139

9. Notes to the consolidated cash flow statement

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

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

There were restrictions on access to cash and cash equivalents of subsidiaries in Argentina as a result of currency legislation.

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.

9.1. Cash flows from operating activities Note (13)

Operating cash flow before changes in working capital was € 198,825 thousand (prior year: € 187,831 thousand), or 7.81% of revenue (prior year: 7.57%). Within "non-cash expenses/income and other adjustments", non-cash expenses/income consisted mainly of the unrealised currency translation losses of € 2,194 thousand (prior year: unrealised translation gains of € 3,776 thousand) reflected in net financial items, a net non-cash expense of € 675 thousand (prior year: net expense of € 542 thousand) for impairment of receivables, an increase of € 5,951 thousand (prior year: increase of € 4,878 thousand) in purchase price liabilities for the acquisition of subsidiaries, and non-cash inventory write-downs of € 5,519 thousand (prior year: € 8,472 thousand). The component "other adjustments" predominantly concerned corrections of the tax expense and net interest expense reflected in the Group's profit for the period, due to 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 € 163,623 thousand (prior year: € 110,096 thousand).

9.2. Cash flows from investing activities Note (14)

Net cash used in investing activities decreased by € 75,932 thousand from € 155,578 thousand to € 79,646 thousand, due mainly to lower outflows for purchases of property, plant and equipment and intangibles, which declined by € 79,521 thousand from € 150,030 thousand to € 70,509 thousand (prior year: decline of € 11,160 thousand). The decrease was explained largely by the completion of major projects of recent years (such as the wheat starch plant in Pischelsdorf, Austria, in the Starch segment), which led to correspondingly lower capital expenditures in the 2020|21 financial year, as well as by the initial application of IFRS 16, Leases, in the 2019|20 financial year. Purchases of subsidiaries, net of cash acquired, in the amount of € 9,111 thousand related to the purchase of 100% of the shares of the US company Marroquin Organic International, Inc., Santa Cruz, California, by AGRANA Stärke GmbH, Vienna.

Proceeds from the disposal of non-current assets amounted to € 2,829 thousand (prior year: € 1,971 thousand).

9.3. Cash flows from financing activities Note (15)

Dividends paid in the amount of € 48,826 thousand (prior year: € 63,203 thousand), which related primarily to the cash dividend paid to the shareholders of AGRANA Beteiligungs-AG, combined with the cash inflows and outflows from borrowings shown in the table below, resulted in net cash used in financing activities of € 59,454 thousand in the 2020|21 financial year (prior year: net cash from financing activities of € 57,322 thousand).

The following table presents the changes in liabilities arising from financing activities:

€000
2020 21
Carrying
amount
at 1 Mar
2020
Changes
in
maturities
Cash
inflows/
(cash
outflows)
Currency
translation
differences
and other
non-cash
changes
Carrying
amount
at 28 Feb
2021
Schuldscheindarlehen, i.e., bonded loans 207,000 0 (26,000) 0 181,000
Investment loan from
European Investment Bank 31,736 (4,882) 0 0 26,854
Loans 189,604 0 73,117 (338) 262,383
Lease liabilities 21,872 (5,928) 0 7,456 23,400
Non-current borrowings 450,212 (10,810) 47,117 7,118 493,637
Investment loan from
European Investment Bank 4,882 4,882 (4,882) 0 4,882
Syndicated loans 85,000 0 (70,000) 0 15,000
Bank overdrafts and cash advances 31,980 0 24,403 (766) 55,617
Lease liabilities 4,952 5,928 (7,266) 1,161 4,775
Current borrowings 126,814 10,810 (57,745) 395 80,274
€000 Carrying
amount
at 1 Mar
2019
Changes
in
maturities
Cash
inflows/
(cash
outflows)
Currency
translation
differences
and other
non-cash
changes
Carrying
amount
at 29 Feb
2020
2019 20
Schuldscheindarlehen, i.e., bonded loans 7,000 0 200,000 0 207,000
Borrowings from affiliated companies
in the Südzucker group 85,000 0 (85,000) 0 0
Investment loan from
European Investment Bank 36,618 (4,882) 0 0 31,736
Loans 150,295 0 39,368 (59) 189,604
Lease liabilities 75 0 0 21,797 21,872
Non-current borrowings 278,988 (4,882) 154,368 21,738 450,212
Schuldscheindarlehen, i.e., bonded loans 35,500 0 (35,500) 0 0
Investment loan from
European Investment Bank 4,882 4,882 (4,882) 0 4,882
Syndicated loans 75,000 0 10,000 0 85,000
Bank overdrafts and cash advances 29,187 0 2,976 (183) 31,980
Lease liabilities 70 0 (6,437) 11,319 4,952
Current borrowings 144,639 4,882 (33,843) 11,136 126,814

10. Notes to the consolidated balance sheet

Concessions,
licences
and similar
€000 Goodwill rights Total
2020 21
Cost
At 1 March 2020 261,892 102,493 364,385
Currency translation differences and hyperinflation adjustments 0 (2,439) (2,439)
Changes in scope of consolidation/other changes 0 3,335 3,335
Additions 0 1,083 1,083
Reclassifications 0 172 172
Disposals 0 (16) (16)
At 28 February 2021 261,892 104,628 366,520
Accumulated amortisation and impairment
At 1 March 2020 20,111 89,277 109,388
Currency translation differences and hyperinflation adjustments 0 (1,215) (1,215)
Changes in scope of consolidation/other changes 0 (1) (1)
Amortisation for the period 0 3,761 3,761
Reclassifications 0 4 4
Disposals 0 (16)
20,111
241,781
91,810
12,818
At 28 February 2021
Carrying amount at 28 February 2021
2019 201
Cost
At 1 March 2019 261,892 100,527
Currency translation differences and hyperinflation adjustments 0 (169)
Changes in scope of consolidation/other changes 0 13
Additions 0 2,022
Reclassifications 0 398
Disposals
At 29 February 2020
0
261,892
(298)
102,493
Accumulated amortisation and impairment
At 1 March 2019 0 85,679
Currency translation differences and hyperinflation adjustments 0 224
Amortisation for the period 0 3,662
Impairment 20,111 1
Disposals
At 29 February 2020
0
20,111
(289)
89,277
(16)
111,921
254,599
362,419
(169)
13
2,022
398
(298)
364,385
85,679
224
3,662
20,112
(289)
109,388

Intangible assets consist largely of acquired customer relationships, software, patents and similar rights.

The additions of € 1,083 thousand (prior year: € 2,022 thousand) of intangible assets related primarily to software.

Of the total carrying amount of goodwill, the Fruit segment accounted for € 240,175 thousand (prior year: € 240,175 thousand) and the Starch segment for € 1,606 thousand (prior year: € 1,606 thousand).

In order to comply with the requirements of IFRS 3 in conjunction with IAS 36 and to allow the determination of any impairment of goodwill, AGRANA defines its cash generating units (CGUs) as the smallest given group of assets that generate cash inflows which are largely independent of the cash inflows of other assets. For the purposes of goodwill impairment testing, AGRANA aggregates the CGUs to the next-higher level at which the goodwill is controlled according to the process of internal control and reporting. At 28 February 2021, the cash-generating units in the AGRANA Group for the purposes of goodwill impairment testing were the Fruit segment and the Starch segment. All goodwill was allocated to cash-generating units. impairment of goodwill, AGRANA defines its cash generating units (CGUs) as the smallest given group of assets that generate cash inflows which are largely independent of the cash inflows of other assets. For the purposes of goodwill impairment testing, AGRANA aggregates the CGUs to the next-higher level at which the goodwill is controlled according to the process of internal control and reporting. At 28 February 2021, the cash-generating units in the AGRANA Group for the purposes of goodwill impairment testing were the Fruit segment and the Starch segment. 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. 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 adopted by the governing bodies 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 (WACC1 ) is calculated as the weighted average cost of equity and debt capital for each CGU. 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 adopted by the governing bodies 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 (WACC1 ) 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 8.0% (prior year: 8.5%) and a beta factor derived from a segment-specific peer group comprising eight companies per business segment (prior year: nine companies). Both the country risk and the inflation differential are assigned a volatility factor of 1.10 (prior year: 1.22). 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 8.0% (prior year: 8.5%) and a beta factor derived from a segment-specific peer group comprising eight companies per business segment (prior year: nine companies). Both the country risk and the inflation differential are assigned a volatility factor of 1.10 (prior year: 1.22).

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. by reference to the capital market.

The following table presents the carrying amounts of the goodwill and the respective discount rate (WACC):

Goodwill
28 Feb
29 Feb
WACC before tax
28 Feb
29 Feb
2021
20202
2020 21 2019 20
2021 20202 2020 21 2019 20
€m €m % %
Fruit CGU €m €m % %
240 240 7.56 6.81
Fruit CGU 240 240 7.56 6.81
Starch CGU 2 2 6.80 4.65
Starch CGU 2 2 6.80 4.65
Group 242 242
Group 242 242

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. 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.

Impairment tests are regularly performed at the second-quarter balance sheet date of 31 August. As a result of the audit by the OePR (triggering event), an update to the goodwill impairment review was carried out at the balance sheet date of 28 February 2021, using the most up-to-date planning calculations available. These planning calculations (released by the Management Board but not yet approved by the Supervisory Board) included the impacts of the coronavirus crisis. No impairment of the carrying amount of goodwill would result in any CGU. Further details are provided in section 7.11, "Critical assumptions and judgements". audit by the OePR (triggering event), an update to the goodwill impairment review was carried out at the balance sheet date of 28 February 2021, using the most up-to-date planning calculations available. These planning calculations (released by the Management Board but not yet approved by the Supervisory Board) included the impacts of the coronavirus crisis. No impairment of the carrying amount of goodwill would result in any CGU. Further details are provided in section 7.11, "Critical assumptions and judgements".

1 Weighted average cost of capital. 2 The prior year data have been restated under IAS 8. Further information is provided on page 114. 143

  • The values in use were subjected to a sensitivity analysis. The results are presented on page 130.
  • 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.

10.2. Property, plant and equipment Note (17)

Land,
leasehold
Technical Other plant,
furniture
Assets
under
rights and plant and and con
€000 buildings machinery equipment struction Total
2020 21
Property, plant and equipment – acquired
Cost
At 1 March 2020 640,170 1,370,340 242,372 153,630 2,406,512
Currency translation differences
and hyperinflation adjustments (20,401) (32,235) (5,683) (1,532) (59,851)
Changes in scope of consolidation/
other changes 0 (65) (50) 127 12
Additions 5,860 26,447 8,735 19,989 61,031
Reclassifications 25,634 116,473 1,941 (144,220) (172)
Disposals (2,286) (7,970) (5,215) (168) (15,639)
Government grants (177) (1,680) (61) 0 (1,918)
At 28 February 2021 648,800 1,471,310 242,039 27,826 2,389,975
Accumulated depreciation and impairment
At 1 March 2020 354,178 966,944 184,785 240 1,506,147
Currency translation differences
and hyperinflation adjustments (9,224) (23,852) (4,092) (8) (37,176)
Changes in scope of consolidation/
other changes 0 (27) (92) 0 (119)
Depreciation for the period 17,208 75,925 15,651 0 108,784
Impairment 0 2,119 9 48 2,176
Reclassifications 0 9 (13) 0 (4)
Disposals (1,880) (6,990) (4,876) 0 (13,746)
Reversal of impairment losses (147) (52) 0 0 (199)
At 28 February 2021 360,135 1,014,076 191,372 280 1,565,863
Carrying amount at 28 February 2021 288,665 457,234 50,667 27,546 824,112
Land, Other plant, Assets
leasehold Technical furniture under
rights and plant and and con
€000 buildings machinery equipment struction Total
2020 21
Property, plant and equipment – leased
Cost
At 1 March 2020 27,363 8,985 1,609 276 38,233
Currency translation differences (908) (161) (72) 0 (1,141)
Additions 6,083 1,295 767 2,030 10,175
Disposals (970) (481) (250) 0 (1,701)
At 28 February 2021 31,568 9,638 2,054 2,306 45,566
Accumulated depreciation and impairment
At 1 March 2020 3,801 1,481 521 0 5,803
Currency translation differences (197) (58) (50) 0 (305)
Depreciation for the period 3,765 1,331 530 0 5,626
Disposals (506) (390) (209) 0 (1,105)
At 28 February 2021 6,863 2,364 792 0 10,019
Carrying amount at 28 February 2021 24,705 7,274 1,262 2,306 35,547
Carrying amount of total property, plant and
equipment at 28 February 2021 313,370 464,508 51,929 29,852 859,659
Land, Other plant, Assets
leasehold Technical furniture under
rights and plant and and con
€000 buildings machinery equipment struction Total
2019 20
Property, plant and equipment – acquired
Cost
At 1 March 2019 616,904 1,314,868 232,213 124,646 2,288,631
Currency translation differences
and hyperinflation adjustments (3,629) (3,504) (387) (451) (7,971)
Changes in scope of consolidation/
other changes (479) (1,510) (234) 1 (2,222)
Additions 9,974 43,313 17,079 72,344 142,710
Reclassifications 18,007 20,949 2,851 (42,737) (930)
Disposals (607) (3,776) (9,150) (173) (13,706)
At 29 February 2020 640,170 1,370,340 242,372 153,630 2,406,512
Accumulated depreciation and impairment
At 1 March 2019 336,847 908,627 178,554 382 1,424,410
Currency translation differences
and hyperinflation adjustments (1,620) (2,928) (18) (6) (4,572)
Changes in scope of consolidation/
other changes (287) (1,490) (233) 0 (2,010)
Depreciation for the period 17,641 66,050 15,114 0 98,805
Impairment 1,868 141 13 32 2,054
Reclassifications (68) (231) 182 0 (117)
Disposals (203) (3,225) (8,827) (140) (12,395)
Reversal of impairment losses 0 0 0 (28) (28)
At 29 February 2020 354,178 966,944 184,785 240 1,506,147
Carrying amount at 29 February 2020 285,992 403,396 57,587 153,390 900,365
Land, Other plant, Assets
leasehold
rights and
Technical
plant and
furniture
and
under
con
€000 buildings machinery equipment struction Total
2019 20
Property, plant and equipment – leased
Cost
At 1 March 2019 – date of initial application
of IFRS 16 23,625 8,991 951 0 33,567
Currency translation differences 27 (12) 1 0 16
Additions 3,199 777 677 276 4,929
Reclassifications 532 0 0 0 0 532
Disposals (20) (771) (20) 0 (811)
At 29 February 2020 27,363 8,985 1,609 276 38,233
Accumulated depreciation and impairment
At 1 March 2019 – date of initial application
of IFRS 16 0 0 0 0 0
Currency translation differences 13 (3) 1 0 11
Depreciation for the period 3,674 1,625 540 0 5,839
Reclassifications 117 0 0 0 117
Disposals (3) (141) (20) 0 (164)
At 29 February 2020 3,801 1,481 521 0 5,803
Carrying amount at 29 February 2020 23,562 7,504 1,088 276 32,430
Carrying amount of total property, plant and
equipment at 29 February 2020 309,554 410,900 58,675 153,666 932,795

Additions of property, plant and equipment by segment were as follows:

€000 2020 21 2019 20
Fruit segment 33,853 55,601
Starch segment 21,725 73,045
Sugar segment 15,628 18,993
Group 71,206 147,639

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. This item also includes the effects of the application of IAS 29 (accounting for hyperinflation).

The government grants consisted largely of investment assistance for the wheat starch plant and a starch dryer in the Starch segment.

In connection with the forecast sugar beet planting acreages in the non-Austrian countries, an impairment test was performed for the property, plant and equipment of the Sugar Sales & Production CGU as at 28 February 2021. In addition to the trajectory of beet acreage, important planning assumptions are sugar production, sugar consumption trends and especially sugar prices. The recoverable amount was determined as the fair value less costs to sell using the present value method. A five-year plan updated by the management with regard to raw material production, with a planting area of 91,400 hectares, was used as a basis. The after-tax WACC used was 5.1% and the growth rate employed was 1.5%. No impairment was identified. Further information is provided in section 7.11, "Critical assumptions and judgements".

AGRANA uses leases mainly for long-term rental agreements for land and buildings in administration and production.

At 28 February 2021 the weighted average incremental borrowing rate for the measurement of lease liabilities was 3.6% (prior year: 3.8%).

Expenses for short-term leases and leases of assets with low value recognised in other operating expenses, as well as interest expenses on lease liabilities recognised in net financial items, were as follows in the year under review:

€000 2020 21 2019 20
Expenses for short-term leases 2,264 2,158
Expenses for leases of low-value assets 182 189
Interest expenses on lease liabilities 1,025 1,029

Note (18)

10.3. Equity-accounted joint ventures, securities, and investments in non-consolidated subsidiaries and outside companies

€000 Equity
accounted
joint
ventures
Securities
(non
current)
Investments
in non
consolidated
subsidiaries
and outside
companies
Total
2020 21
At 1 March 2020 76,919 19,599 919 97,437
Currency translation differences (3,952) (10) 0 (3,962)
Capital increase at joint ventures and additions 2,072 0 1,273 3,345
Share of results of equity-accounted joint ventures 17,513 0 0 17,513
Impairment 0 (109) (106) (215)
Dividends of equity-accounted
joint ventures and disposals (21,000) (64) (403) (21,467)
Other comprehensive income 566 0 0 566
At 28 February 2021 72,118 19,416 1,683 93,217
2019 20
At 1 March 2019 69,926 18,843 19 88,788
Currency translation differences (4,213) 4 0 (4,209)
Capital increase at joint ventures and additions 8,018 0 906 8,924
Share of results of equity-accounted joint ventures 16,727 0 0 16,727
Impairment 0 263 0 263
Dividends of equity-accounted
joint ventures and disposals (14,000) 0 (6) (14,006)
Other comprehensive income 461 489 0 950
At 29 February 2020 76,919 19,599 919 97,437

The additions of € 1,273 thousand to investments in non-consolidated subsidiaries and outside companies related to the newly established subsidiary AGRANA Fruit Japan Co., Ltd., Tokyo, Japan, which was provided with additional capital and will be fully consolidated in the Group financial statements for the first time when it begins to operate in the 2021|22 financial year.

10.4. Receivables and other assets Note (19)

28 Feb 29 Feb
€000 2021 2020
Trade receivables 323,055 319,457
Amounts due from affiliated companies and joint ventures 14,621 16,721
Positive fair value of derivatives 4,961 2,134
Amounts due from associates in the Südzucker group 661 2,063
Receivable under government grants 1,536 602
Receivables from outside companies that are investees 0 43
Miscellaneous other financial assets 26,537 20,955
Financial instruments 371,371 361,975
VAT credits and other tax credits 47,575 50,282
Prepaid expenses 6,858 6,479
Accrued income 1,426 2,465
Total 427,230 421,201
Of which due after more than 1 year 8,106 12,410

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.

10.5. Deferred tax assets Note (20)

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

28 Feb 29 Feb
€000 2021 2020
Deferred tax assets
Intangible assets and property, plant and equipment 5,083 2,769
Non-current financial assets (primarily "one-seventh" write-downs
on non-consolidated subsidiaries and on outside companies) 2,407 2,342
Inventories 3,416 4,325
Receivables and other assets 1,615 694
Carryforwards of unused tax losses 7,720 4,559
Retirement, termination and long-service benefit obligations 5,162 6,758
Other provisions and liabilities 13,684 15,445
Total deferred tax assets 39,087 36,892
Deferred tax assets offset against deferred tax liabilities
relating to the same tax authority (22,647) (22,717)
Net deferred tax assets 16,440 14,175

Deferred tax liabilities are detailed in note 26.

10.6. Inventories Note (21)

28 Feb 29 Feb
€000 2021 2020
Raw materials and consumables 223,806 212,629
Finished and unfinished goods 443,888 485,135
Goods purchased for resale 32,919 12,736
Total 700,613 710,500

Write-downs of € 5,518 thousand (prior year: € 8,472 thousand) were recognised on inventories, with the Fruit segment accounting for € 4,041 thousand (prior year: € 2,579 thousand) of this total and the Sugar segment for € 1,335 thousand (prior year: € 3,906 thousand). The decreases in value were attributable to a reduction in net realisable values of sugar at the balance sheet date.

10.7. Equity Note (22)

The share capital at the balance sheet date was € 113,531,275 (prior year: € 113,531,275), divided into 62,488,976 (prior year: 62,488,976) voting ordinary bearer shares. All shares were fully paid.

The movements in the Group's equity are presented from page 104.

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. At the balance sheet date, the amount of share premium and other capital reserves was € 540,759,998 (prior year: € 540,759,998).

Retained earnings consist of the reserve for equity instruments, the reserve for hedging instruments (cash flow hedges), reserves for actuarial gains and losses, and reserves for the share of other comprehensive income of joint ventures, effects of consolidation-related foreign currency translation, hyperinflation adjustments, and accumulated profit for the period.

Disclosures on capital management

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

28 Feb 29 Feb
€000 2021 2020 1
Total equity 1,329,097 1,367,021
Total assets 2,472,734 2,529,333
Equity ratio 53.8% 54.0%
Net debt 443,524 464,012
Gearing ratio 33.4% 33.9%

Capital management at AGRANA means the management of equity and of net debt. By optimising these two quantities, 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 ensures the Group's financial stability and independence. In addition to its self-financing ability, AGRANA also has access to sufficient committed credit lines for its overall financing needs.

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

10.8. Provisions Note (23)

€000 28 Feb
2021
29 Feb
2020
Provisions for:
Retirement benefits 30,124 31,024
Termination benefits 37,662 42,377
Other 46,874 50,545
Total 114,660 123,946

a) Provisions for retirement and termination benefits Note (23a)

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 29 Feb
% 2021 2020
Expected rate of wage and salary increases
Austria and rest of Europe 2.74 3.27
Mexico/South Korea 6.0 / 4.0 6.0 / 4.0
Expected trend of pension increases
Austria 1.8 2.0
Mexico 6.0 6.0
Discount rate
Austria and rest of Europe 0.75 0.80
Mexico/South Korea 7.5 / 2.1 7.25 / 2.2

A discount rate of 0.75% (prior year: 0.80%) 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 specific to salaried employees ("AVÖ 2018-P-Rechnungsgrundlagen für die Pensionsversicherung").

Defined benefit plans

Pension plans in the AGRANA Group are based largely on direct defined benefit commitments. The amounts of the pension benefits are usually determined by length of service and by pensionable pay. Termination benefit plans exist mainly as a result of legal requirements or of obligations under collective agreements and the benefits represent onetime, 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 29 Feb
€000 2021 2020
Pension plans
Present value of defined benefit obligation 46,405 47,574
Fair value of plan assets (16,281) (16,550)
Pension provisions [net liability] 30,124 31,024
Termination benefit plans
Present value of defined benefit obligation 39,606 44,160
Fair value of plan assets (1,944) (1,783)
Termination benefit provisions [net liability] 37,662 42,377

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 € 28,207 thousand (prior year: € 27,560 thousand) and the plan assets amounted to € 15,918 thousand (prior year: € 16,069 thousand). Further detail is provided in the section "Related party disclosures" in these notes.

In addition, there were direct defined benefit commitments, including for survivor benefits, in respect of retired former employees of AGRANA Zucker GmbH in the amount of € 14,392 thousand (prior year: € 15,449 thousand), of Österreichische Rübensamenzucht Gesellschaft m.b.H. in the amount of € 697 thousand (prior year: € 734 thousand), of AGRANA Stärke GmbH in the amount of € 1,679 thousand (prior year: € 2,170 thousand) and of AUSTRIA JUICE GmbH in the amount of € 212 thousand (prior year: € 221 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 € 143 thousand (prior year: € 147 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 € 503 thousand (prior year: € 546 thousand) and there were plan assets in the form of pension insurance of € 142 thousand (prior year: € 254 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 € 715 thousand (prior year: € 894 thousand), with plan assets in the form of pension insurance of € 79 thousand (prior year: € 80 thousand).

The pension provisions showed the following movement:

Present Fair value
value of of plan Pension
€000 obligation assets provisions
2020 21
At 1 March 2020 47,574 (16,550) 31,024
Current service cost 628 0 628
Interest expense/(income) 429 (137) 292
Taxes and administration cost 0 17 17
Total recognised in the income statement [net pension cost] 1,057 (120) 937
Losses/(gains) from:
Actual return on plan assets 0 214 214
Changes in demographic assumptions (42) 0 (42)
Changes in financial assumptions (512) 0 (512)
Experience adjustments 981 0 981
Currency translation differences (151) 12 (139)
Total remeasurement loss recognised
in the statement of comprehensive income 276 226 502
Benefits paid (2,502) 489 (2,013)
Employer contributions to plan assets 0 (326) (326)
Other movements (2,502) 163 (2,339)
At 28 February 2021 46,405 (16,281) 30,124
€000 Present Fair value
value of of plan Pension
provisions
obligation assets
2019 20
At 1 March 2019 43,977 (14,444) 29,533
Current service cost 535 0 535
Interest expense/(income) 699 (238) 461
Taxes and administration cost 0 69 69
Total recognised in the income statement [net pension cost] 1,234 (169) 1,065
(Gains)/losses from:
Actual return on plan assets 0 (972) (972)
Changes in financial assumptions 3,990 0 3,990
Experience adjustments 1,000 0 1,000
Currency translation differences 6 (1) 5
Total remeasurement loss/(gain) recognised
in the statement of comprehensive income 4,996 (973) 4,023
Benefits paid (2,633) 355 (2,278)
Employer contributions to plan assets 0 (1,319) (1,319)
Other movements (2,633) (964) (3,597)
At 29 February 2020 47,574 (16,550) 31,024

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 € 36,440 thousand (prior year: € 41,197 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 (except in the event of termination by the employee) or on retirement. The benefit amount depends on final pay and length of service. These commitments in the amount of € 200 thousand (prior year: € 238 thousand) are covered solely by provisions. In Romania there are termination benefit obligations of three months' pay in the event of retirement. The amount of the provision is € 233 thousand (prior year: € 223 thousand).

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. Plan assets of € 3 thousand (prior year: € 3 thousand) in Mexico offset the present value of the obligation of € 211 thousand (prior year: € 223 thousand).

The present value of the obligation of the termination benefit plan for South Korea was € 2,522 thousand (prior year: € 2,279 thousand); the plan assets amounted to € 1,941 thousand (prior year: € 1,780 thousand).

The termination benefit provisions showed the following movement:

Present
value of
Fair value
of plan
Termination
benefit
€000 obligation assets provisions
2020 21
At 1 March 2020 44,160 (1,783) 42,377
Current service cost 1,925 0 1,925
Past service cost (136) 0 (136)
Interest expense/(income) 387 (38) 349
Taxes and administration cost 0 5 5
Total recognised in the income statement
[net termination benefit cost] 2,176 (33) 2,143
Losses/(gains) from:
Actual return on plan assets 0 9 9
Changes in demographic assumptions 112 0 112
Changes in financial assumptions (1,145) 0 (1,145)
Experience adjustments (1,299) 0 (1,299)
Currency translation differences (179) 56 (123)
Total remeasurement (gain)/loss recognised
in the statement of comprehensive income (2,511) 65 (2,446)
Benefits paid (4,219) 63 (4,156)
Employer contributions to plan assets 0 (256) (256)
Other movements (4,219) (193) (4,412)
At 28 February 2021 39,606 (1,944) 37,662
Present Fair value Termination
value of of plan benefit
€000 obligation assets provisions
2019 20
At 1 March 2019 43,329 (1,685) 41,644
Current service cost 1,888 0 1,888
Interest expense/(income) 663 (43) 620
Taxes and administration cost 0 4 4
Total recognised in the income statement
[net termination benefit cost] 2,551 (39) 2,512
Losses from:
Actual return on plan assets 0 24 24
Changes in financial assumptions 2,029 0 2,029
Experience adjustments 93 0 93
Currency translations differences (62) 57 (5)
Total remeasurement loss recognised
in the statement of comprehensive income 2,060 81 2,141
Benefits paid (3,780) 154 (3,626)
Employer contributions to plan assets 0 (294) (294)
Other movements (3,780) (140) (3,920)
At 29 February 2020 44,160 (1,783) 42,377

The expense for the unwinding of discount on benefits accrued in prior years, less the return on plan assets, is included

within net financial items. The current service cost is included in staff costs. The year's actuarial result on pension and termination benefit provisions, which is recognised in other comprehensive income as the item "Changes in actuarial gains and losses on defined benefit pension obligations and similar liabilities", was an actuarial gain of € 1,949 thousand (prior year: actuarial loss of € 6,177 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 2021, net cumulative actuarial losses of € 47,404 thousand (prior year: net cumulative actuarial losses of € 49,353 thousand) had been offset against retained earnings, not taking into account deferred taxes.

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

Composition of plan assets

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

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

28 Feb 29 Feb
% 2021 2020
Fixed income securities 43.35% 55.72%
Equity securities 30.53% 23.96%
Real estate 4.85% 4.08%
Other 21.27% 16.24%

Risks

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

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

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

Duration and future payments

The average weighted duration of the present value of the pension obligations at 28 February 2021 was 10.50 years (prior year: 10.81 years) and that of the termination benefit obligations was 8.76 years (prior year: 9.09 years).

€ 1,022 thousand of contributions are expected to be paid into the plan assets in the subsequent reporting period (prior year: € 855 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 2021 22 2,955 5,109
Financial year 2022 23 2,805 3,068
Financial year 2023 24 2,750 2,732
Financial year 2024 25 2,613 1,835
Financial year 2025 26 2,490 3,088
Financial years 2026 27 to 2030 31 10,976 13,155
Total 24,589 28,987

b) Other provisions Note (23b)

€000
2020 21
Recla
mation
Staff costs,
including
long-service
awards
Uncertain
liabilities
Total
At 1 March 2020 12,563 18,987 18,995 50,545
Currency translation differences (95) (162) (122) (379)
Used (260) (4,959) (10,728) (15,947)
Released (568) (984) (4,216) (5,768)
Reclassified (805) 0 805 0
Added 667 5,351 12,405 18,423
At 28 February 2021 11,502 18,233 17,139 46,874
Of which due within 1 year 157 2,141 15,180 17,478

The provisions for uncertain liabilities included, among other items, provisions for onerous contracts of € 3,631 thousand (prior year: € 3,800 thousand), for litigation risks of € 2,156 thousand (prior year: € 7,976 thousand) and for costs of beet receiving, loading and storage of € 776 thousand (prior year: € 1,400 thousand).

Of the non-current other provisions of € 29,396 thousand (prior year: € 29,756 thousand), a large portion, at € 13,014 thousand (prior year: € 13,721 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 € 353 thousand (prior year: € 714 thousand) are expected to be used in outflows of funds in the next one to three years. For the majority of the non-current provisions of € 11,345 thousand (prior year: € 12,543 thousand) for reclamation, an outflow of funds is likely to occur in more than five years.

10.9. Borrowings Note (24)

28 Feb 29 Feb
€000 2021 2020
Bank loans and overdrafts 545,736 550,202
Lease liabilities 28,175 26,824
Borrowings 573,911 577,026
Of which due after more than 1 year 493,637 450,212

Details of bank loans and overdrafts are presented in sections 11.1 to 11.4.

The maturities of the lease liabilities existing at the balance sheet date were as follows:

28 Feb 29 Feb
€000 2021 2020
Non-current lease liabilities 23,400 21,872
Current lease liabilities 4,775 4,952

At the balance sheet date, bank loans and overdrafts were secured by liens. The liens related to collateral in the form of export receivables for an export credit in Austria and in the form of operating assets (such as machinery) for loans in Algeria. The underlying carrying amounts were € 8,893 thousand (prior year: € 9,813 thousand).

10.10.Trade and other payables Note (25)

28 Feb 29 Feb
€000 2021 2020
Trade payables 311,524 311,771
Amounts due to affiliated companies
in the Südzucker group and joint ventures 26,308 31,086
Payables from the acquisition of subsidiaries 4,706 12,192
Derivative liabilities 4,637 3,197
Financial other payables 69,094 67,312
Financial instruments 416,269 425,558
Payables: deferred income 3,604 3,622
Payables: prepayments 921 575
Payables: other tax 13,194 11,817
Payables: social security 9,430 8,170
Total 443,418 449,742
Of which due after more than 1 year 1,094 6,418

Trade payables included obligations to beet growers of € 32,112 thousand (prior year: € 38,113 thousand).

Financial other payables included, among other items, liabilities to employees and payroll liabilities.

10.11. Deferred tax liabilities Note (26)

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

28 Feb 29 Feb
€000 2021 2020
Deferred tax liabilities
Non-current assets 19,852 20,510
Inventories 1,398 575
Receivables and other assets 2,076 2,828
Untaxed reserves in separate financial statements 1,686 1,939
Provisions and other liabilities 3,137 2,369
Total deferred tax liabilities 28,149 28,221
Deferred tax assets offset against deferred tax liabilities relating
to the same tax authority (22,647) (22,717)
Net deferred tax liabilities 5,502 5,504

Deferred tax assets are detailed in note 20.

11. Notes on financial instruments

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

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

Financial instruments are generally procured centrally and distributed Group-wide. The principal aims of obtaining financing are to achieve 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
than
interest balance Up to 1 to
rate sheet date 1 year 5 years 5 years
% €000 €000 €000 €000
28 February 2021
Fixed rate
CNY 4.89 5,625 2,500 3,125 0
DZD 4.06 1,092 644 448 0
EUR 1.17 411,213 55,649 254,340 101,224
1.23 417,930 58,793 257,913 101,224
Variable rate
CNY 4.50 6,002 6,002 0 0
EGP 8.00 427 427 0 0
EUR 0.52 118,960 7,860 76,000 35,100
HUF 2.00 64 64 0 0
KRW 2.17 1,829 1,829 0 0
TRY 9.00 333 333 0 0
USD 2.25 77 77 0 0
ZAR 7.00 114 114 0 0
0.79 127,806 16,706 76,000 35,100
Total 1.13 545,736 75,499 333,913 136,324
Average Of which due in
effective At More
interest balance
sheet date
Up to 1 to
5 years
than
5 years
rate 1 year
% €000 €000 €000 €000
29 February 2020
Fixed rate
CNY 5.00 7,350 1,598 5,752 0
DZD 6.50 2,013 1,086 927 0
EUR 1.28 315,922 5,361 164,455 146,106
1.40 325,285 8,045 171,134 146,106
Variable rate
CNY 4.79 8,671 8,671 0 0
EGP 15.00 441 441 0 0
EUR 0.75 210,473 99,373 76,000 35,100
HUF 6.00 3,643 3,643 0 0
KRW 2.86 1,585 1,585 0 0
USD 2.25 104 104 0 0
1.03 224,917 113,817 76,000 35,100
Total 1.25 550,202 121,862 247,134 181,206

Borrowings (excluding lease liabilities) consisted of bank loans and overdrafts in the amount of € 545,736 thousand (prior year: € 550,202 thousand).

The weighted average interest rate paid on these credits was 1.13% (prior year: 1.25%), with an average remaining maturity of 3.4 years (prior year: 4.0 years).

The credit funding of the AGRANA Group consisted primarily of two syndicated credit lines totalling € 400,000 thousand at the balance sheet date (prior year: € 450,000 thousand) and a Schuldscheindarlehen (bonded loan) of € 181,000 thousand (prior year: € 207,000 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 € 417,930 thousand (prior year: € 325,285 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 € 8,893 thousand (prior year: € 9,813 thousand) were secured by other liens, see note 24.

Cash and cash equivalents increased by € 17,556 thousand from the prior year to a new total of € 110,971 thousand.

11.2. Derivative financial instruments

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

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

The Group employs only conventional derivatives for which there is a sufficiently liquid market (for example, interest rate swaps, 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:

Nominal Positive Negative Net
Purchase Sale amount fair values fair values fair value
€000 €000 €000 €000
28 February 2021
AUD EUR 5,572 135 (2) 133
CZK EUR 20,977 0 (27) (27)
EUR AUD 5,120 0 (195) (195)
EUR CZK 42,807 30 (126) (96)
EUR GBP 495 2 (6) (4)
EUR HUF 40,004 257 (31) 226
EUR INR 1,520 0 (4) (4)
EUR JPY 202 8 0 8
EUR MXN 18,268 758 0 758
EUR PLN 8,946 92 (4) 88
EUR RON 125,359 0 (1,225) (1,225)
EUR USD 97,569 1,250 (82) 1,168
EUR ZAR 2,425 0 (38) (38)
HUF EUR 42,705 11 (413) (402)
MXN EUR 8,723 0 (237) (237)
PLN EUR 21,517 27 (114) (87)
RON EUR 43,750 414 0 414
USD EUR 64,293 392 (391) 1
Currency derivatives 550,252 3,376 (2,895) 481
Interest rate swaps 76,000 42 (686) (644)
Sugar futures 9,605 67 (259) (192)
Wheat and corn futures 101,004 1,476 (153) 1,323
Ethanol futures 13,732 0 (644) (644)
Total 750,593 4,961 (4,637) 324
Nominal Positive Negative Net
Purchase Sale amount fair values fair values fair value
€000 €000 €000 €000
29 February 2020
AUD EUR 4,426 0 (137) (137)
CZK EUR 1,067 6 (1) 5
EUR AUD 3,373 106 0 106
EUR CZK 25,824 66 (127) (61)
EUR GBP 396 2 0 2
EUR HUF 17,412 133 (4) 129
EUR INR 1,740 0 (24) (24)
EUR MXN 12,262 31 (143) (112)
EUR PLN 10,669 109 0 109
EUR RON 95,153 13 (306) (293)
EUR RUB 2,349 23 (71) (48)
EUR USD 68,276 10 (1,041) (1,031)
EUR ZAR 2,676 86 0 86
GBP EUR 9 0 0 0
HUF EUR 3,275 0 (7) (7)
INR EUR 50 0 0 0
PLN EUR 29,217 22 (117) (95)
RON EUR 44,347 131 (11) 120
USD AUD 922 61 0 61
USD EUR 47,443 923 (142) 781
USD RUB 114 3 0 3
Currency derivatives 371,000 1,725 (2,131) (406)
Interest rate swap 50,000 0 (1,059) (1,059)
Interest cap 50,000 0 0 0
Sugar futures 57,204 71 (7) 64
Wheat and corn futures 408,400 177 0 177
Ethanol futures 9,600 161 0 161
Total 946,204 2,134 (3,197) (1,063)

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, 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 that were used to hedge future cash flows and have a hedging relationship to an underlying transaction (cash flow hedges) must initially be recognised in other comprehensive income. Subsequently they are taken to profit or loss only when the cash flows are realised, in revenue (for sales transactions) or cost of materials (for purchase transactions) and in net financial items (for interest rate swaps).

The carrying amounts represent the fair values. The derivatives recognised with a hedging relationship to an underlying transaction are presented in the following table:

28 Feb 2021 29 Feb 2020
Fair value Fair value
€000 Positive Negative Positive Negative
Currency derivatives 62 (105) 0 (25)
Interest rate swaps 42 (686) 0 (1,059)
Sugar futures 67 (259) 71 (7)
Wheat and corn futures 1,476 0 153 0
Ethanol futures 0 (644) 161 0
Total 1,647 (1,694) 385 (1,091)

The hedge relationships concern the hedging of price risk on raw sugar purchases, sugar sales, wheat and corn purchases, corn sales in the case of waxy corn derivatives, and on sales of ethanol. Under the risk management strategy, hedging through futures contracts is intended to hedge a certain percentage of the planned commodity quantities. The goal of the risk management strategy is to lock in the price of future purchases and sales at an early stage by entering into corresponding futures contracts. As part of the hedging of price risk, transactions in US dollars are protected against the effects of exchange rate movements through the use of foreign exchange contracts.

To hedge interest rate risk, the Group holds interest rate swaps with a hedging relationship to the underlying transaction. The underlying transaction is considered to consist of the future cash flows from financial liabilities that carry variable interest at 3-month EURIBOR. The hedging of the variable future interest payments on the financial liability leads to the reduction of volatile valuation components in the income statement and enhances the quality of planning and forecasting. The risk management objective is thus to hedge against the risk of fluctuations in variable cash flows.

For the 2020|21 financial year, a loss of € 322 thousand (prior year: loss of € 824 thousand) before taxes, and a tax benefit of € 61 thousand (prior year: € 205 thousand) for value changes on derivatives with a hedging relationship to the underlying transaction, were recognised in other comprehensive income. Both in the year under review and the prior year, there was no hedge ineffectiveness to be recognised. Net derivative gains of € 275 thousand relating to already fulfilled underlying transactions were reclassified from the reserve for hedging instruments (cash flow hedges) to the income statement. The fair values of the derivatives remained in the balance sheet until their settlement.

The following table presents the derivatives that have a hedging relationship to an underlying transaction, with the notional amounts or contract volumes, and the average prices and interest rates, by maturity.

28 Feb 2021 29 Feb 2020
Remaining maturity Remaining maturity
More More
Up to 1 to than Up to 1 to than
1 year 5 years 5 years 1 year 5 years 5 years
Currency derivatives (USD)
Notional amount €000 18,382 0 0 2,500 0 0
Average hedged price USD 1.213 0 0 1.115 0 0
Currency derivatives (HUF)
Notional amount €000 16,665 0 0 0 0 0
Average hedged price HUF 361.367 0 0 0 0 0
Currency derivatives (CZK)
Notional amount €000 14,797 0 0 0 0 0
Average hedged price CZK 26.287 0 0 0 0 0
Interest rate swaps
Notional amount €000 76,000 76,000 0 50,000 50,000 0
Average interest rate % 0.004 0.004 0 0.245 0.245 0
Sugar futures
Volume Tonnes 31,548 0 0 4,471 0 0
Average hedged price € per tonne 15.624 0 0 14.828 0 0
Wheat and corn futures
Volume Tonnes 8,950 0 0 63,100 0 0
Average hedged price € per tonne 57.547 0 0 178.740 0 0
Ethanol futures
Volume Tonnes 22,600 0 0 9,600 0 0
Average hedged price € per tonne 578.933 0 0 628.886 0 0

The value changes of those derivative positions which do not have a hedging relationship to an underlying transaction are recognised in profit or loss in the income statement. Hedging transactions were carried out to hedge sales revenue and raw material expenses.

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 2021
Currency derivatives
Positive fair values 3,376 3,376 3,242 68 66 0 0 0 0 0
Negative fair values (2,895) (2,895) (2,576) (301) (18) 0 0 0 0 0
Interest rate derivatives
Positive fair values 42 82 6 6 12 24 24 10 0 0
Negative fair values (686) (711) (97) (98) (199) (317) 0 0 0 0
Commodity derivatives
Positive fair values 1,543 1,543 1,421 0 122 0 0 0 0 0
Negative fair values (1,056) (1,056) (693) (248) (115) 0 0 0 0 0
Total 324 339 1,303 (573) (132) (293) 24 10 0 0
29 February 2020
Currency derivatives
Positive fair values 1,725 1,725 1,113 508 104 0 0 0 0 0
Negative fair values (2,131) (2,131) (1,899) (143) (89) 0 0 0 0 0
Interest rate derivatives
Positive fair values 0 0 0 0 0 0 0 0 0 0
Negative fair values (1,059) (895) (80) (80) (159) (319) (257) 0 0 0
Commodity derivatives
Positive fair values 409 409 291 85 33 0 0 0 0 0
Negative fair values (7) (7) (7) 0 0 0 0 0 0 0
Total (1,063) (899) (582) 370 (111) (319) (257) 0 0 0

In terms of sensitivities, the net combined fair value of the derivative positions held at 28 February 2021 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 29 Feb 28 Feb 29 Feb 28 Feb 29 Feb
€000 2021 2020 2021 2020 2021 2020
Currency derivatives 550,252 371,000 12,137 10,054 (14,834) (12,289)
Interest rate derivatives 76,000 100,000 1,043 707 (1,043) (707)
Commodity derivatives 124,341 475,204 (830) 28 (164) (1,125)

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 decrease of € 861 thousand (prior year: increase of € 608 thousand) and for the decrease in rates and prices, an equity increase of € 153 thousand (prior year: decrease of € 1,419 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 € 13,537 thousand (prior year: increase of € 9,979 thousand) and for the decrease in rates and prices, a profit decrease of € 16,244 thousand (prior year: decrease of € 12,229 thousand).

11.3. Additional disclosures on financial instruments

Carrying amounts and fair values of financial instruments

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

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

The three levels were defined as follows:

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

The fair value of Level 2 currency derivatives is measured based on the exchange rate at the balance sheet date and the underlying currencies' interest rate differential relevant for the remaining maturity. The mark-to-market price is determined and compared with the price of the hedged item or transaction. The input factors for this are the reference rates of the European Central Bank (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 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.

The table below does not contain disclosures on the fair value of financial assets and liabilities that do not require measurement at fair value if the carrying amount is a reasonable approximation of fair value. This applies in particular to trade receivables, other financial assets, cash and cash and cash equivalents, trade payables and financial other payables, as a result of the short terms to maturity.

Carrying amount
Carrying amount
€000
€000
At fair value
At fair value
through
through
profit or loss
profit or loss
At fair value
At fair value
through
through
other
other
compre
compre
hensive
hensive
income
income
(no
(no
recycling)
recycling)
At fair value
At fair value
through
through
other
other
compre
compre
hensive
hensive
income
income
(hedging
(hedging
instruments)
instruments)
At
At
amortised
amortised
cost
cost
Total
Total
Level 1
Level 1
Level 2
Level 2
Level 3
Level 3
Total
Total
28 February 2021
28 February 2021
Financial assets
Financial assets
at fair value
at fair value
Securities (non-current)
Securities (non-current)
13,157
13,157
6,259
6,259


19,416
19,416
12,266
12,266

7,150
7,150
19,416
19,416
Investments in
Investments in
non-consolidated
non-consolidated
subsidiaries and
subsidiaries and
outside companies
outside companies
(non-current)
(non-current)

1,683
1,683


1,683
1,683


1,683
1,683
1,683
1,683
Derivative
Derivative
financial assets
financial assets
3,314
3,314

1,647
1,647

4,961
4,961
1,543
1,543
3,418
3,418

4,961
4,961
16,471
16,471
7,942
7,942
1,647
1,647

26,060
26,060
Financial assets
Financial assets
not at fair value
not at fair value
Trade receivables
Trade receivables



323,055
323,055
323,055
323,055
Financial other receivables1
Financial other receivables1



43,355
43,355
43,355
43,355
Cash and cash equivalents
Cash and cash equivalents



110,971
110,971
110,971
110,971



477,381
477,381
477,381
477,381
Financial liabilities
Financial liabilities
at fair value
at fair value
Derivative liabilities
Derivative liabilities
2,943
2,943

1,694
1,694

4,637
4,637
1,056
1,056
3,581
3,581

4,637
4,637
2,943
2,943

1,694
1,694

4,637
4,637
Financial liabilities
Financial liabilities
not at fair value
not at fair value
Bank loans and overdrafts
Bank loans and overdrafts



545,736
545,736
545,736
545,736
– 547,288
– 547,288

547,288
547,288
Lease liabilities2
Lease liabilities2



28,175
28,175
28,175
28,175
Trade payables
Trade payables



311,524
311,524
311,524
311,524
Financial other payables3
Financial other payables3



100,108
100,108
100,108
100,108



985,543
985,543
985,543
985,543

Excluding other tax receivables, and excluding those prepaid expenses and accrued income not resulting in a cash inflow. 2 1 Excluding other tax receivables, and excluding those prepaid expenses and accrued income not resulting in a cash inflow. 2 In accordance with IFRS 7.29 (d), the fair value is no longer presented. 3

In accordance with IFRS 7.29 (d), the fair value is no longer presented. 3 Excluding payables from other tax, social security, customer prepayments, and deferred income. Excluding payables from other tax, social security, customer prepayments, and deferred income. 165

Carrying amount
Carrying amount
Fair value
Fair value
€000
€000
At fair value
At fair value
through
through
profit or loss
profit or loss
At fair value
At fair value
through
through
other
other
compre
compre
hensive
hensive
income
income
(no
(no
recycling)
recycling)
At fair value
At fair value
through
through
other
other
compre
compre
hensive
hensive
income
income
(hedging
(hedging
instruments)
instruments)
At
At
amortised
amortised
cost
cost
Total
Total
Level 1
Level 1
Level 2
Level 2
Level 3
Level 3
Total
Total
29 February 2020
29 February 2020
Financial assets
Financial assets
at fair value
at fair value
Securities (non-current)
Securities (non-current)
13,340
13,340
6,259
6,259


19,599
19,599
12,449
12,449

7,150
7,150
19,599
19,599
Investments in
Investments in
non-consolidated
non-consolidated
subsidiaries and
subsidiaries and
outside companies
outside companies
(non-current)
(non-current)

919
919


919
919


919
919
919
919
Derivative
Derivative
financial assets
financial assets
1,749
1,749

385
385

2,134
2,134
409
409
1,725
1,725

2,134
2,134
15,089
15,089
7,178
7,178
385
385

22,652
22,652
Financial assets
Financial assets
not at fair value
not at fair value
Trade receivables
Trade receivables



319,457
319,457
319,457
319,457
Financial other receivables1
Financial other receivables1



40,384
40,384
40,384
40,384
Cash and cash equivalents
Cash and cash equivalents



93,415
93,415
93,415
93,415
Financial liabilities
Financial liabilities
at fair value
at fair value



453,256
453,256
453,256
453,256
Derivative liabilities
Derivative liabilities
2,106
2,106

1,091
1,091

3,197
3,197
7
7
3,190
3,190

3,197
3,197
2,106
2,106

1,091
1,091

3,197
3,197
Financial liabilities
Financial liabilities
not at fair value
not at fair value
Bank loans and overdrafts
Bank loans and overdrafts



550,202
550,202
550,202
550,202
– 552,790
– 552,790

552,790
552,790
Lease liabilities2
Lease liabilities2



26,824
26,824
26,824
26,824
Trade payables
Trade payables



311,771
311,771
311,771
311,771
Financial other payables3
Financial other payables3



110,590
110,590
110,590
110,590



999,387
999,387
999,387
999,387

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. 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.

  • Excluding other tax receivables, and excluding those prepaid expenses and accrued income not resulting in a cash inflow. 2
  • In accordance with IFRS 7.29 (d), the fair value is no longer presented. 3 Excluding payables from other tax, social security, customer prepayments, and deferred income. Excluding other tax receivables, and excluding those prepaid expenses and accrued income not resulting in a cash inflow. 2 In accordance with IFRS 7.29 (d), the fair value is no longer presented. 3 166 Excluding payables from other tax, social security, customer prepayments, and deferred income.

1

Securities of Level 1 classified as at "fair value through profit or loss" included investment fund units of € 12,266 thousand (prior year: € 12,449 thousand) and are measured at current market values obtained from securities account statements. Level 3 securities categorised as at "fair value through other comprehensive income (no recycling)" consist largely of equity instruments in the amount of € 5,991 thousand (prior year: € 5,991 thousand), for which the market value is determined based on an issuer valuation report. For other securities in Level 3 classified as at "fair value through profit or loss" (uncertificated securities) in the amount of € 891 thousand (prior year: € 891 thousand), the nominal value represents their fair value. For shares of non-listed companies classified as at "fair value through other comprehensive income (no recycling)" in the amount of € 268 thousand (prior year: € 268 thousand) and for € 1,283 thousand (prior year: € 13 thousand) of investments in non-consolidated subsidiaries, the Group chose not to determine fair value based on discounted future cash flows, as this item was not material to the Group. The fair value of investments in outside companies in the amount of € 400 thousand (prior year: € 906 thousand) was determined using discounted expected future cash flows.

Securities, investments in non-consolidated subsidiaries and in outside companies that are classified as at "fair value through other comprehensive income (no recycling)" are held for the long term for strategic purposes. The following table shows their fair values and associated dividend payments.

Carrying
amount
28 Feb
Dividend Carrying
amount
29 Feb
Dividend
€000 2021 2020 21 2020 2019 20
RAIFFEISEN-Holding
NIEDERÖSTERREICH-WIEN regGenmbH
5,991 0 5,991 116
Other 1,951 22 1,187 17
Total 7,942 22 7,178 133

The change in fair values of Level 3 securities was recognised in other comprehensive income, in the reserve for equity instruments, at a change of € 0 thousand (prior year: increase of € 489 thousand) before tax, and at a tax expense of € 0 thousand (prior year: tax expense of € 122 thousand). In the 2020|21 financial year in the category "at fair value through other comprehensive income (no recycling)", in Level 3, there was an addition of a non-consolidated subsidiary in the amount of € 1,273 thousand and a disposal of an investment in an outside company in the amount of € 506 thousand. There were no other changes in Level 3 financial instruments. There were no other changes in Level 3 financial instruments.

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.

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 2020 21 2019 20
Fair value through profit or loss (109) 263
Fair value through profit or loss – derivatives 1,691 3,267
At amortised cost – financial assets (251) (3,006)
At amortised cost – financial liabilities (2,194) 3,776
Net (loss)/gain on financial instruments in the income statement (863) 4,300
Fair value through other comprehensive income (no recycling) 0 489
Fair value through other comprehensive income (hedging instruments) 501 (394)
Net gain on financial instruments in other comprehensive income 501 95
Total net (loss)/gain on financial instruments (362) 4,395

The total interest income and expense on financial assets and financial liabilities measured at amortised cost was as follows:

€000 2020 21 2019 20
Total interest income 802 1,137
Total interest expense (6,580) (6,829)
Net interest expense (5,778) (5,692)

11.4. Risk management in the AGRANA Group

The AGRANA Group is exposed to market price risks through changes in exchange rates, interest rates and security prices. On the procurement side, price risks arise largely from energy costs, the purchase of sugar in the world market and the purchase of wheat and corn (maize) for bioethanol production. On the sales side, price risks arise primarily from selling prices that are based on world market prices of ethanol and sugar. In addition, the Group is exposed to credit risks, which are 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 achieving a balance between risks and returns. The Group's risk culture is characterised by risk-aware behaviour, clearly defined responsibilities, independent risk control, and the implementation of internal control systems.

AGRANA regards the responsible management of business risks and opportunities as an important part of sustainable, value-driven corporate governance. Risk management thus forms an integral part of the entire planning, management and reporting process and is directed by the Management Board. The parent company and all subsidiaries employ risk management systems that are tailored to their respective operating activity. The systems' purpose is the methodical identification, assessment, control and documenting of risks.

In a three-pronged approach, risk management at the AGRANA Group is based on risk control at the operational level, on strategic control of Group companies by the Group, and on an internal monitoring system delivered by the Group's internal audit department. In addition, emerging trends that could develop into threats to the viability of the AGRANA Group as a going concern are identified and analysed at an early stage and continually re-evaluated as part of the risk management process.

Credit risk

Credit risk is the risk of an economic loss as a result of a counterparty's failure to honour its payment obligations. Credit risk includes both the risk of a deterioration in customers' or other counterparties' credit quality, and the risk of their immediate default.

The trade receivables of the AGRANA Group are largely with the food and chemical industries and the reseller sector (wholesalers and retailers). Credit risk in respect of trade receivables is managed on the basis of internal standards and guidelines.

The AGRANA Group applies the following credit risk management principles:

  • Credit analysis of prospective customers and ongoing monitoring of existing customers' credit quality
  • Use of trade credit insurance in accordance with internal Group regulations and requirements, supplemented where appropriate with additional security such as bank guarantees, letters of credit or prepayments.
  • Systems-supported credit limit checks
  • Standardised dunning

Each operating unit is responsible for the implementation and monitoring of the corresponding processes. As well, a monthly credit risk report is prepared by the operating units and aggregated at Group level. The uniform measures monitored as part of credit risk monitoring include, among others, days sales outstanding (DSO), the ageing schedule for receivables, and the types and amounts of credit security.

In determining possible impairment, in accordance with internal guidelines and IFRS 9, trade receivables are deemed irrecoverable when 90 days past due, unless the operating unit has reasonable and supportable information that demonstrates that a longer period past due is justified. However, should impairment be identified in the course of the credit monitoring, individual impairment is applied. This is also true for trade receivables less than 90 days past due.

AGRANA uses the simplified approach under IFRS 9 to measure expected credit losses. Beyond the recognition of individual impairment, the defaults of the past six years were analysed. Based on the results, loss rates were determined, by length of time past due and by payment profile of the underlying revenue. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors that affect customers' ability to pay receivables. Projections for non-performing loans were used as the most relevant factor for the 2020|21 financial year for the adjustment of the historical loss rates, as credit spreads, for example, are not currently suitable adjustment factors due to the Covid-19 crisis and excess liquidity. The factor calculated was weighted based on growth rates of gross domestic products published by the Organisation for Economic Co-operation and Development (OECD) and management judgment.

The maturity profile of trade receivables, the loss rates and the impairment allowances raised were as follows:

€000 Loss rate
%
Gross
carrying
amount
Impair
ment
allowance
Net
carrying
amount
28 February 2021
Trade receivables not yet due 0.0510 300,390 (153) 300,237
Trade receivables past due
Up to 30 days 0.4138 17,536 (73) 17,463
31 to 90 days 1.7124 4,257 (73) 4,184
More than 90 days 1,171 0 1,171
Individual impairment recognised 6,855 (6,855) 0
Total 330,209 (7,154) 323,055
29 February 2020
Trade receivables not yet due 0.0234 293,458 (68) 293,390
Trade receivables past due
Up to 30 days 0.2958 18,146 (54) 18,092
31 to 90 days 0.9841 5,694 (56) 5,638
Total 326,840 (7,383) 319,457
Individual impairment recognised 7,205 (7,205) 0
More than 90 days 2,337 0 2,337

The allowance for impairment of trade receivables showed the following movements:

28 Feb 29 Feb
€000 2021 2020
Allowance at 1 March 7,383 7,341
Currency translation adjustments/other changes (128) (24)
Added 1,319 1,358
Used (776) (476)
Released (644) (816)
Allowance at 28/29 February 7,154 7,383

The released amount of the allowance included interest income of € 10 thousand (prior year: € 12 thousand).

Liquidity risk

Liquidity risk is the risk that a company will not be able to meet its financial obligations when due or in sufficient measure.

The AGRANA Group generates liquidity with its business operations and from external financing. The funds are used to fund working capital, investment and business acquisitions.

In order to ensure the Group's solvency at all times and safeguard its financial flexibility, a liquidity reserve is maintained in the form of credit lines and, to the extent necessary, of cash.

To manage the seasonally fluctuating cash flows, both short-term and long-term finance is raised in the course of day-today financial management.

At the balance sheet date the Group had credit lines with a total limit of € 999,910 thousand (prior year: € 1,003,201 thousand). The weighted average remaining maturity of the credit lines at the balance sheet date was 2.8 years (prior year: 3.0 years).

The following maturity profile shows the effects of the cash outflows from liabilities as at 28 February 2021 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 2021
Non-derivative
financial payables
Bank loans and overdrafts 545,736 565,997 71,282 3,690 5,762 20,657 160,179 119,566 47,299 137,562
Trade payables 311,524 311,524 281,136 26,698 3,690 0 0 0 0 0
Trade payables and
amounts due to
affiliated companies
in the Südzucker group
and joint ventures 26,308 26,308 25,754 537 17 0 0 0 0 0
Lease liabilities 28,175 38,711 1,491 1,461 2,677 5,068 4,375 2,226 1,865 19,548
Financial other payables 73,800 73,800 58,581 7,377 6,748 806 225 15 15 33
985,543 1,016,340 438,244 39,763 18,894 26,531 164,779 121,807 49,179 157,143
Derivative financial payables
Interest rate derivatives 686 711 97 98 199 317 0 0 0 0
Currency derivatives 2,895 2,895 2,576 301 18 0 0 0 0 0
Commodity derivatives 1,056 1,056 693 248 115 0 0 0 0 0
4,637 4,662 3,366 647 332 317 0 0 0 0
29 February 2020
Non-derivative
financial payables
Bank loans and overdrafts 550,202 575,876 109,095 12,039 6,140 13,780 120,655 10,131 119,263 184,773
Trade payables 311,771 311,771 283,883 24,278 3,610 0 0 0 0 0
Trade payables and
amounts due to
affiliated companies
in the Südzucker group
and joint ventures 31,086 31,086 29,405 1,103 578 0 0 0 0 0
Lease liabilities 26,824 38,583 1,500 1,557 2,807 4,783 4,178 3,268 1,310 19,180
Financial other payables 79,504 79,504 60,059 6,682 6,346 6,256 85 14 14 48
999,387 1,036,820 483,942 45,659 19,481 24,819 124,918 13,413 120,587 204,001
Derivative financial payables
Interest rate derivatives 1,059 895 80 80 159 319 257 0 0 0
Currency derivatives 2,131 2,131 1,899 143 89 0 0 0 0 0
Commodity derivatives 7 7 7 0 0 0 0 0 0 0
3,197 3,033 1,986 223 248 319 257 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.

Currency risk

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 29 Feb
€000 2021 2020
Sum of absolute net positions of the currency pairs 128,809 140,281
Value-at-Risk diversified 6,680 3,835

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 29 Feb
€000 2021 2020
Currency pair
EUR/AUD 576 1,911
EUR/CNY 3,863 4,326
EUR/CZK 6,613 5,874
EUR/HUF 20,282 1,078
EUR/INR 981 2,548
EUR/MAD 3,708 3,698
EUR/PLN 1,673 201
EUR/RON 54,294 94,675
EUR/RUB 3,229 4,038
EUR/UAH 3,329 642
EUR/USD 6,107 1,886
USD/ARS 2,546 65
USD/AUD 3,623 1,915
USD/BRL 1,712 2,444
USD/CNY 6,904 9,173
USD/MXN 5,399 80
Other 3,970 5,727
Total 128,809 140,281

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 € 128,809 thousand (prior year: € 140,281 thousand) related primarily to Romania, China, the Czech Republic, Hungary, the USA and Mexico, and represented a Value-at-Risk of € 6,680 thousand (prior year: € 3,835 thousand).

In the Sugar segment, Group companies based in the European Union whose local currency is not the euro are exposed to foreign exchange risk between the euro and their respective local currency, as the beet prices for a given campaign are partly set in euros. The subsidiaries in Romania and Hungary are subject to currency risk from raw sugar purchases in US dollars and purchases of white sugar in euros, and some companies are exposed to currency risk from the exporting of 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.

Interest rate risk

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 29 Feb
€000 2021 2020
Net floating rate borrowings 127,806 224,917
Cash-Flow-at-Risk diversified 369 644
Net fixed rate borrowings 359,137 317,240
Value-at-Risk upon change in interest rates 13,642 15,669

The floating rate borrowings are subject to interest rate risk. To hedge against this risk, interest rate swaps were entered into for a portion of the borrowings, thus achieving fixed interest rates on this portion.

Commodity price risk

AGRANA's business activities expose it to market price risk from purchases of commodities and the sale of finished products (ethanol). This is particularly true in the production of bioethanol, where the most important cost factors by far are the prices of the main inputs, corn and wheat. To a lesser but still significant extent, the Sugar segment has exposure to the purchase prices of raw sugar.

At the balance sheet date, the Group had open commodity derivative contracts for the purchase of 31,548 tonnes of raw sugar (prior year: sale of 4,471 tonnes), the purchase of 8,950 tonnes of wheat for the Austrian bioethanol production operations (prior year: sale of 63,100 tonnes), the sale of 2,300 tonnes of waxy corn derivatives (prior year: purchase of 4,000 tonnes), and the sale of 22,600 tonnes of ethanol (prior year: sale of 9,600 tonnes). These positions represented an aggregate contract amount of € 3,474 thousand (prior year: € 16,782 thousand) and, based on the underlying closing prices, had a combined net positive fair value of € 487 thousand (prior year: positive fair value of € 402 thousand).

Legal risks

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, and provides regular further training for the employees involved.

As noted in previous annual reports, the Austrian Federal Competition Authority (AFCA) 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 (Südzucker). The Vienna Higher Regional Court on 19 May 2019 dismissed the suit and did not impose a fine; the AFCA has appealed the decision to the Supreme Court. The AFCA justifies this primarily on the grounds that, in its decision, the German Federal Competition Authority took into account only the wrongfulness of Südzucker's behaviour in relation to Germany and that the imposition of an "additional penalty" in relation to Austria was both permissible and appropriate. By a decision of 27 March 2020, the Supreme Court adjourned the appeal proceedings and asked the European Court of Justice (ECJ) for a preliminary ruling on the scope of the "ne bis in idem" principle in EU competition proceedings. This interim proceeding is still pending. The ECJ's ruling is expected in the first calendar quarter of 2022. AGRANA continues to regard the allegation as unfounded and the fine sought as unwarranted.

AGRANA Stärke GmbH is also a defendant in proceedings before the Vienna Commercial Court. The plaintiff claims to have suffered damages from non-delivery of promised quantities of product. This proceeding in the court of first instance is at the stage of taking evidence. A first-instance decision could come in the 2021|22 financial year. AGRANA considers the plaintiff's claims to be unfounded in view of the lack of a valid agreement on the purchase quantities.

Otherwise, there are 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.

11.5. Contingent liabilities and commitments

Guarantees were primarily related to bank loans of the joint ventures in the Sugar segment.

28 Feb 29 Feb
€000 2021 2020
Guarantees 43,304 44,728
Warranties, cooperative liabilities 1,365 1,365

The guarantees are not expected to be utilised.

A further contingent liability of € 5,534 thousand (prior year: € 5,925 thousand) was 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, in the form of purchase commitments for investments in property, plant and equipment, amounted to € 15,742 thousand (prior year: € 12,576 thousand).

12. Events after the balance sheet date

No significant events occurred after the balance sheet date of 28 February 2021 that had a material effect on AGRANA's financial position, results of operations or cash flows.

13. Related party disclosures

AGRANA Zucker, Stärke und Frucht Holding AG, based in Vienna, holds 78.34% of the share capital of AGRANA Beteiligungs-AG. This holding company is exempt from the obligation to prepare consolidated financial statements, as its accounts are included in the consolidated financial statements of Südzucker AG, Mannheim, Germany. In August 2020, with a view to simplifying the Group structure, Z&S Zucker und Stärke Holding AG, Vienna, which previously directly held 78.34% of the share capital of AGRANA Beteiligungs-AG, was merged into AGRANA Zucker, Stärke und Frucht Holding AG, Vienna, with retroactive effect from 1 March 2020. The ultimate parent of the group of companies is Süddeutsche Zuckerrübenverwertungs-Genossenschaft eG, Stuttgart, 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:

€000
2020 21
Südzucker
group
Companies
with
significant
influence
Joint
ventures
Non
consolidated
sub
sidiaries
Total
Revenue 59,026 15,915 23,732 0 98,673
Operating expenses (112,685) (400) (53,322) (316) (166,723)
Credit relationships (323) (43,060) 0 0 (43,383)
Participation capital 0 5,991 0 0 5,991
Bank balances and current receivables 0 20,577 5 196 20,778
Non-current financial receivables 0 0 3,945 0 3,945
Net trade (payables)/receivables
for goods (10,048) 724 (4,727) (73) (14,124)
Net interest (expense)/income (1) (1,708) 92 3 (1,614)
Guarantees issued 0 0 46,000 0 46,000
Guarantees utilised 0 0 41,220 0 41,220
Companies
with
Non
consolidated
€000 Südzucker
group
significant
influence
Joint
ventures
sub
sidiaries
Total
2019 20
Revenue 78,973 17,748 19,805 0 116,526
Operating expenses (64,160) (580) (61,959) (254) (126,953)
Credit relationships (578) (53,652) 0 0 (54,230)
Participation capital 0 5,991 0 0 5,991
Bank balances and current receivables 0 13,327 9 0 13,336
Non-current financial receivables 0 0 3,500 0 3,500
Net trade (payables)/receivables
for goods (10,979) 1,009 (3,796) (54) (13,820)
Net interest (expense)/income (545) (923) 124 0 (1,344)
Guarantees issued 0 0 46,000 0 46,000
Guarantees utilised 0 0 40,642 0 40,642

At the balance sheet date, borrowings from related parties amounted to € 43,383 thousand (prior year: € 54,230 thousand).

For fully consolidated subsidiaries, the Group has issued guarantees in favour of companies with significant influence of € 5,000 thousand (prior year: € 5,000 thousand), of which none (prior year: none) was utilised.

The remuneration of the members of the Management Board of AGRANA Beteiligungs-AG totalled € 3,935 thousand (prior year: € 3,936 thousand), consisting of total fixed base salaries of € 1,869 thousand (prior year: € 1,814 thousand) and a total performance-based, variable component of € 2,066 thousand (prior year: € 2,122 thousand). The performancebased 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 3 July 2020 the Annual General Meeting approved an annual aggregate remuneration for the Supervisory Board of € 325 thousand (prior year: € 325 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.

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 and of Norbert Harringer 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 2020|21 financial year, pension fund contributions of € 440 thousand were paid (prior year: € 383 thousand). A follow-up payment of € 78 thousand (prior year: € 125 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 2021, within the item "retirement and termination benefit obligations", an amount of € 12,289 thousand was recognised for pension obligations (prior year: € 11,491 thousand) and an amount of € 1,551 thousand was recognised for termination benefit obligations (prior year: € 2,565 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 178.

On 6 May 2021 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, 6 May 2021

The Management Board of AGRANA Beteiligungs-AG

Johann Marihart Chief Executive Officer

Norbert Harringer Member of the Management Board

Stephan Büttner Member of the Management Board

Thomas Kölbl Member of the Management Board

Fritz Gattermayer Member of the Management Board

List of members of AGRANA's boards List of members of AGRANA's boards

Management Board

Johann Marihart Chief Executive Officer

Stephan Büttner Member

Fritz Gattermayer Member

Norbert Harringer Member

Thomas Kölbl Member

Supervisory Board

Erwin Hameseder Chairman

Hans-Jörg Gebhart First Vice-Chairman

Klaus Buchleitner Second Vice-Chairman

Helmut Friedl Member

Andrea Gritsch Member

Ernst Karpfinger Member

Thomas Kirchberg Member

Josef Pröll Member

Employee representatives

Thomas Buder Chairman of the Group Staff Council and the Central Staff Council

Andreas Klamler

Gerhard Kottbauer

Stephan Savic

Statement by the members of the Management Board

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 2021, 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 2020|21 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, 6 May 2021

The Management Board of AGRANA Beteiligungs-AG

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 Quality Management, Human Resources, and Organisation, Mergers & Acquisitions, Research and Development Compliance, Legal

Fritz Gattermayer Norbert Harringer Member of the Management Board Member of the Management Board Purchasing & Logistics Investment

Thomas Kölbl Member of the Management Board Responsibility on Internal Audit

Present responsibilities: Sales, Raw Materials, Present responsibilities: Production Coordination,

Independent auditor's report Independent auditor's report

[Translation]

Report on the Consolidated Financial Statements

Audit Opinion

We have audited the consolidated financial statements of AGRANA Beteiligungs-Aktiengesellschaft, Vienna, and its subsidiaries (the Group), which comprise the separate consolidated income statement, the consolidated statement of comprehensive income, the consolidated cash flow statement, the consolidated balance sheet as at 28 February 2021 and the consolidated statement of changes in equity for the financial year then ended, and the notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements comply with legal requirements and give a true and fair view of the financial position of the Group as at 28 February 2021, and of its financial performance and cash flows for the financial year then ended in accordance with International Financial Reporting Standards as adopted by the EU (IFRSs) and the additional regulations of section 245a Austrian Company Code.

Basis for Opinion

We conducted our audit in accordance with Regulation (EU) No. 537/2014 (hereinafter EU Regulation) and Austrian Generally Accepted Standards on Auditing. Those standards require the application of the International Standards on Auditing (ISAs). Our responsibilities under those provisions and standards are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements" section of our report. We are independent of the Group in accordance with Austrian Generally Accepted Accounting Principles and professional requirements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained until the date of the auditor's report is sufficient and appropriate to provide a basis for our opinion by this date.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the financial year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have structured key audit matters as follows:

  • Description
  • Audit approach and key observations
  • Reference to related disclosures

Impairment of goodwill

Description

The carrying amount of Goodwill is EUR 241,781k (carrying amount as at 29 February 2020: EUR 241,781k (restated)).

Goodwill is reviewed by management at least annually for impairment. This review is performed regularly on 31 August, and additionally whenever there are indications of possible impairment (triggering events). On 13 January 2021, the Österreichische Prüfstelle für Rechnungslegung (OePR) found an error regarding the forecast assumptions for the Sugar segment which are used to determine future cash flows. This finding resulted in a triggering event and a retrospective correction of the test for impairment as at 29 February 2020 for the Sugar CGU.

AGRANA reported a carrying amount of goodwill as at 29 February 2020 of EUR 261,892k of which the Sugar Segment accounted for EUR 20,111k. In line with IAS 8.42, an impairment loss amounting to EUR 20,111k has been recorded with retrospective effect for the goodwill of the Sugar CGU.

In the course of the annual assessments as to whether goodwill is to be impaired, the Company determines the value in use for the following cash generating units (CGUs) Fruit, Sugar and Starch. The Company calculates the values in use based on the discounted cash flow method. This valuation method is significantly influenced by the assumptions and estimates in respect of the future cash flows. These future cash flows are derived from forecast figures which are approved by the respective management bodies and may be subject to adjustments if necessary. The discount rate applied in the discounted cash flow is also influenced by future changes in the market, economic and legal environment. The changes in estimates have been accounted for in the impairment tests in accordance with IAS 36, based on the latest information available. The economic framework conditions and the economic environment must be considered at the time of making a judgement regarding the value in use.

Based on the relevant facts as described, that the determination of the value in use is based on judgement and associated with estimate uncertainties, particular attention was paid to the testing for impairment of Goodwill within the audit.

Audit approach and key observations We:

  • evaluated the internal monitoring system to ensure that it is appropriate to detect possible indications of impairment and evaluated the Company's internal assessment for objective evidence of impairment,
  • consulted with our valuation specialists,
  • compared the valuation method and assumptions in respect of forecasts and valuation parameters applied against appropriate benchmarks and against the accounting regulations of IAS 36, based on our knowledge of the industry and our experience,
  • assessed the valuation method applied by following the model and analysing whether it is adequate for accurately determining the value in use,
  • critically examined the discount rate by assessing the discount rate parameters applied in terms of their appropriateness through comparison with market and industry-specific benchmarks,
  • reviewed the Company's forecasting accuracy applied by back testing the underlying forecast figures,
  • inspected the modified future cash flows as well as an analysis of the assumptions of the future prices in determining these future cash flows,
  • reviewed whether the changes in the cash-flow assumptions 2020 have been recognized in the new planning process of the impairment test 2021,
  • performed a risk analysis by simulating the effects of the changes in prices on future cash flows and performing sensitivity analysis over the effects of the changes,
  • verified the regularity of the adjustments with retrospective effect in accordance with IAS 8 and the corresponding mandatory disclosures in the consolidated financial statements 2021, and
  • reviewed the mandatory disclosures regarding the impairment test in accordance with IAS 36 in the notes to the consolidated financial statements 2021.

A review was also carried out of the notes included in the consolidated financial statements for accuracy and completeness.

The accounting and measurement methods used are consistent with IFRSs. We believe the assumptions and parameters to be transparent and appropriate.

Reference to related disclosures

See Note 7.6. for the procedures carried out by management for the performance of impairment tests and Note 10.1. in the notes to the consolidated financial statements.

Other Information

Management is responsible for the other information. The other information comprises the information included in the annual report, but does not include the consolidated financial statements, the management report for the Group and our auditor's report thereon. The annual report is expected to be made available to us after the date of this auditor's report.

Our opinion on the consolidated financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

Responsibilities of Management and the Audit Committee for the Consolidated Financial Statements

Management is responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU (IFRSs) and the additional regulations of section 245a Austrian Company 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.

In preparing the consolidated financial statements, management is 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 intends 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.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

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 opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the EU Regulation and with Austrian Generally Accepted Standards on Auditing, which require the application of ISAs, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the 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 with Austrian Generally Accepted Standards on Auditing, which require the application of ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.

We also:

  • identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risks of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  • 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.
  • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
  • 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 auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our 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.
  • evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

obtain sufficient appropriate audit evidence regarding the financial information of the entities or 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, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with all relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

Comments on the Management Report for the Group

Pursuant to Austrian Generally Accepted Accounting Principles, the management report for the Group is to be audited as to whether it is consistent with the consolidated financial statements and as to whether the management report for the Group was prepared in accordance with the applicable legal regulations. Regarding the consolidated non-financial statement contained in the management report for the Group, it is our responsibility to examine whether it has been prepared, to read it and to consider whether it is, based on our knowledge obtained in the audit, materially inconsistent with the consolidated financial statements or otherwise appears to be materially misstated.

Management is responsible for the preparation of the management report for the Group in accordance with Austrian Generally Accepted Accounting Principles.

We conducted our audit in accordance with Austrian standards on auditing for the audit of the management report for the Group.

Opinion

In our opinion, the management report for the Group was prepared in accordance with the applicable legal regulations, comprising the details in accordance with section 243a UGB, and is consistent with the consolidated financial statements.

Statement

Based on the findings during the audit of the consolidated financial statements and due to the obtained understanding concerning the Group and its circumstances no material misstatements in the management report for the Group came to our attention.

Additional Information in Accordance with Article 10 of the EU Regulation Additional Information in Accordance with Article 10 of the EU Regulation

We were elected as statutory auditor at the ordinary general meeting dated 3 July 2020. We were appointed by the Supervisory Board on 26 August 2020. We have audited the Company for an uninterrupted period since 2019|20. We were elected as statutory auditor at the ordinary general meeting dated 3 July 2020. We were appointed by the Supervisory Board on 26 August 2020. We have audited the Company for an uninterrupted period since 2019|20.

We confirm that the audit opinion in the "Report on the Consolidated Financial Statements" section is consistent with the additional report to the Audit Committee referred to in Article 11 of the EU Regulation. We confirm that the audit opinion in the "Report on the Consolidated Financial Statements" section is consistent with the additional report to the Audit Committee referred to in Article 11 of the EU Regulation.

We declare that no prohibited non-audit services (Article 5 para. 1 of the EU Regulation) were provided by us and that we remained independent of the audited company in conducting the audit. We declare that no prohibited non-audit services (Article 5 para. 1 of the EU Regulation) were provided by us and that we remained independent of the audited company in conducting the audit.

Responsible Engagement Partner Responsible Engagement Partner

Responsible for the proper performance of the engagement is Mr. Werner Stockreiter, Austrian Certified Public Accountant. Responsible for the proper performance of the engagement is Mr. Werner Stockreiter, Austrian Certified Public Accountant.

Vienna, 6 May 2021 Vienna, 6 May 2021

PwC Wirtschaftsprüfung GmbH PwC Wirtschaftsprüfung GmbH

signed: Werner Stockreiter Austrian Certified Public Accountant signed: Werner Stockreiter Austrian Certified Public Accountant

FINANCIAL 2020|21 STATEMENTS AND MANAGEMENT REPORT PARENT COMPANY:

AGRANA BETEILIGUNGS-AG UNDER AUSTRIAN COMMERCIAL CODE (UGB)

Parent company financial statements 186

  • Parent company income statement 187
  • Parent company balance sheet 188
  • Notes to the parent company financial statements1 189
  • Parent company management report1 206

  • Statement by the members of the Management Board 231

  • Independent auditor's report 232
  • Proposed appropriation of profit 236

Parent company financial statements

for the year ended 28 February 2021

INHALTSVERZEICHNIS

  • Parent company income statement 187 Überblick 24
  • Parent company balance sheet 188 Geschäftsverlauf und wirtschaftliche Lage der AGRANA Beteiligungs-Aktiengesellschaft 26
  • Notes to the parent company financial statements 189 Beteiligungen der AGRANA Beteiligungs-Aktiengesellschaft 28

Parent company income statement forthe year ended 28 February 2021 Parent company income statement

of AGRANA Beteiligungs-AG,under Austrian Commercial Code (UGB) for the year ended 28 February 2021 AGRANA Beteiligungs-Aktiengesellschaft

€000 2020 21 2019 20
1. Revenue 36,666 35,137
2. Other operating income 122 205
3. Staff costs (23,357) (22,524)
4. Depreciation, amortisation and impairment of
property, plant and equipment and intangible assets (1,189) (1,303)
5. Other operating expenses (24,661) (25,090)
6. Operating (loss) [subtotal of items 1 to 5] (12,419) (13,575)
7. Income from investments in subsidiaries
and other companies 50,235 74,810
Of which from subsidiaries 50,213 74,793
8. Income from other securities and loans classified
as non-current financial assets 4,218 2,524
Of which from subsidiaries 4,218 2,524
9. Other interest and similar income 3,276 3,794
Of which from subsidiaries 3,263 3,794
10. Interest and similar expense (3,351) (2,993)
Of which from subsidiaries (3,233) (790)
11. Net financial items [subtotal of items 7 to 10] 54,378 78,135
12. Profit before tax [subtotal of items 1 to 11] 41,959 64,560
13. Income tax benefit 4,942 320
14. Profit for the period 46,901 64,880
15. Retained profit brought forward from prior year 22,041 5,278
16. Retained profit 68,942 70,158

Parent company balance sheet at 28 February 2021 Parent company balance sheet

of AGRANA Beteiligungs-AG,under Austrian Commercial Code (UGB) at 28 February 2021

€000 28 Feb
2021
29 Feb
2020
ASSETS
A. Non-current assets
I. Intangible assets 393 983
II. Property, plant and equipment 1,190 1,050
III. Non-current financial assets 638,283 664,283
639,866 666,316
B. Current assets
I. Receivables and other assets 369,923 364,213
Of which due in more than 1 year 19,633 15,915
II. Cash and bank balances 22 28
369,945 364,241
C. Prepaid expenses 61 58
D. Deferred tax assets
Total assets
2,438
1,012,310
618
1,031,233
EQUITY AND LIABILITIES
A. Equity
I. Share capital 113,531 113,531
II. Share premium and other capital reserves 550,689 550,689
III. Revenue reserve 13,928 13,928
IV. Retained profit 68,942 70,158
Of which brought forward from prior year 22,041 5,278
B. Provisions 747,090 748,306
I. Provisions for retirement and termination benefit obligations 15,707 16,273
II. Provisions for tax and other provisions 3,845 4,390
19,552 20,663
C. Liabilities
I. Borrowings
Of which due in up to 1 year
221,000
0
247,000
0
Of which due in more than 1 year 221,000 247,000
II. Other liabilities 24,668 15,264
Of which due in up to 1 year 11,932 8,232
Of which due in more than 1 year 12,736 7,032
245,668 262,264
Total equity and liabilities 1,012,310 1,031,233

ANHANG ZUM JAHRESABSCHLUSS Notes to the parent company financial statements

1. ALLGEMEINES

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) mit gerundeten Werten, jene der Vorjahresbeträge in tausend EURO (TEUR) mit gerundeten Werten.

Für die Darstellung der Gewinn- und Verlustrechnung wurde das Gesamtkostenverfahren gewählt.

2. BILANZIERUNGS- UND BEWERTUNGSMETHODEN

2.1. Allgemeine Grundsätze

Der Jahresabschluss wurde unter Beachtung der Grundsätze ordnungsmäßiger Buchführung und Bilanzierung 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.

2.2. Anlagevermögen

Immaterielle Vermögensgegenstände

Die immateriellen Vermögensgegenstände werden zu Anschaffungskosten bewertet, die um die planmäßigen Abschreibungen vermindert sind.

Die planmäßige Abschreibung wird linear vorgenommen.

Folgende Nutzungsdauer wird der planmäßigen Abschreibung zugrunde gelegt:

Jahre Prozent
Markenrechte 10 10
EDV-Software 3 33,33

Außerplanmäßige Abschreibungen auf einen zum Abschlussstichtag niedrigeren beizulegenden Wert werden vorgenommen, wenn die Wertminderungen voraussichtlich von Dauer sind.

Sachanlagevermögen

Das Sachanlagevermögen wird zu Anschaffungskosten bewertet, die um die planmäßigen Abschreibungen vermindert sind.

Die planmäßige Abschreibung wird linear vorgenommen.

Folgende Nutzungsdauern werden der planmäßigen Abschreibung zugrunde gelegt:

Jahre Prozent
Gebäude 40-50 2,5-2
Geschäftsausstattung 5-10 20-10
EDV-Ausstattung 3 33,33
Gebrauchte Geschäftsausstattung und EDV 1-5 100-20

Gemäß Strukturanpassungsgesetz 1996 ergibt sich eine steuerliche Abschreibungsdauer für Personenkraftfahrzeuge von 8 Jahren. Unternehmensrechtlich wird eine Nutzungsdauer von 5 Jahren zugrunde gelegt.

Außerplanmäßige Abschreibungen auf einen zum Abschlussstichtag niedrigeren beizulegenden Wert werden vorgenommen, wenn die Wertminderungen voraussichtlich von Dauer sind.

Finanzanlagen

Die Anteile an verbundenen Unternehmen und Beteiligungen werden zu Anschaffungskosten oder zu dem niedrigeren Wert, der ihnen gemäß § 204 (2) UGB beizulegen ist, bewertet.

Gemäß Strukturanpassungsgesetz 1996 werden Abschreibungen bzw. Verluste aus Beteiligungen steuerrechtlich auf 7 Jahre verteilt angesetzt. Unternehmensrechtlich wird dieser Aufwand im Entstehungsjahr zur Gänze geltend gemacht.

Die Ausleihungen werden zum Nennwert bewertet. Im Falle einer dauerhaften Wertminderung werden außerplanmäßige Abschreibungen auf den beizulegenden Zeitwert vorgenommen.

Zuschreibungen und andere Angaben

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 800,00) 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.

2.3. Umlaufvermögen

Forderungen und sonstige Vermögensgegenstände

Die Forderungen und sonstigen Vermögensgegenstände sind mit dem Nennwert angesetzt, soweit nicht im Fall erkennbarer Einzelrisken der niedrigere beizulegende Wert angesetzt wird.

Zuschreibungen zu Vermögensgegenständen des Umlaufvermögens werden vorgenommen, wenn die Gründe für die Abschreibung weggefallen sind.

Latente Steuern

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. Für steuerliche Verlustvorträge wurde eine 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 2.437.690 € (im Vorjahr 618 Tsd. € ) wurde in die Bilanz aufgenommen.

2.4. Rückstellungen

Rückstellungen für Abfertigungen und Jubiläen

Die Rückstellungen für Abfertigungen und Jubiläen wurden im Einklang mit der "AFRAC-Stellungnahme 27 Personalrückstellungen (UGB) (März 2018)" 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 0,75 % (VJ 0,80 %) herangezogen, die künftigen Gehaltssteigerungen wurden mit 2,74 % (VJ 3,27 %) und Fluktuationsabschläge je nach Dienstangehörigkeit von 0-1,68% (im Vorjahr 0-1,65%) für Abfertigungen und von 0-12,76% (im Vorjahr 0-12,79%) für Jubiläen angesetzt.

Als Rechnungsgrundlagen wurden die "AVÖ 2018-P – Rechnungsgrundlagen für die Pensionsversicherung" 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.

Rückstellung für Pensionen

Die Rückstellungen für Pensionen wurden im Einklang mit der "AFRAC-Stellungnahme 27 Personalrückstellungen (UGB) (März 2018)" 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 0,75 % (VJ 0,80 %) herangezogen, die künftigen Gehaltssteigerungen für Aktive wurden mit 1,78 % (VJ 1,88 %) angesetzt. Als Rechnungsgrundlagen wurden die "AVÖ 2018- P – Rechnungsgrundlagen für die Pensionsversicherung" 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 ausgelagert. Es wurde der Gesamtbetrag der rückgestellten Pensionsansprüche an die Kasse übertragen.

Die bilanzierte Rückstellung für Pensionen setzt sich aus dem Barwert abzüglich des beizulegenden Zeitwertes des Planvermögens zusammen:

Pensionspläne Stand 28.02.2021 Stand 29.02.2020
EUR EUR
Barwert der leistungsorientierten Verpflichtung 28.207.355 27.559.923
Beizulegender Zeitwert des Planvermögens –15.917.737 –16.069.072
Rückstellungen für Pensionen 12.289.618 11.490.850

Sonstige Rückstellungen

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 unternehmerischer Beurteilung erforderlich sind. Die sonstigen Rückstellungen wurden in Höhe des Erfüllungsbetrages gebildet, der bestmöglich geschätzt wurde.

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.

2.5. Verbindlichkeiten

Die Verbindlichkeiten sind mit dem Erfüllungsbetrag angesetzt. Fremdwährungsverbindlichkeiten sind mit dem höheren Devisenbriefkurs am Bilanzstichtag bewertet.

3. ERLÄUTERUNGEN ZUR BILANZ

3.1. Anlagevermögen

Die Entwicklung der einzelnen Posten des Anlagevermögens ist im Anlagespiegel (Beilage zum Anhang) dargestellt.

Der Anteilsbesitz gemäß § 238 Abs 1 Z 4 UGB (mindestens 20 % Kapitalanteil) stellt sich wie folgt dar:

Beteiligungsunternehmen Höhe des
Anteils
%
Eigenkapital gem.
§ 229 UGB
EUR
Geschäftsjahr Jahresüberschuss/
fehlbetrag
EUR
Anteile an verbundenen Unternehmen:
AGRANA Sales & Marketing GmbH, Wien 100,00 93.318.653 2020/21 –24.739.619
AGRANA Int.Verw.u.Asset Managem. GmbH, Wien*) 98,91 291.238.308 2020/21 11.315.486
AGRANA Zucker GmbH., Wien*) 98,91 134.407.449 2020/21 169.987
AGRANA Stärke GmbH., Wien*) 98,91 338.923.674 2020/21 57.101.691
AGRANA Group-Service GmbH, Wien 100,00 740.057 2020/21 –3.211.407
INSTANTINA Nahrungsmittel Entwicklungs- und
Produktions- Gesellschaft m.b.H, Wien 66,67 8.325.327 2020/21 727.412
AGRANA Research & Innovation Center GmbH,
Tulln 100,00 6.187.992 2020/21 1.262.135

*) Die restlichen Anteile auf 100 % werden von Tochtergesellschaften gehalten.

Die Ausleihungen an verbundene Unternehmen betreffen die AGRANA Group-Services GmbH, Wien. Davon haben 0 € eine Restlaufzeit von bis zum einem Jahr, 92.000.000 € eine Restlaufzeit von 1 bis 5 Jahren und 129.000.000 € eine Restlaufzeit von über 5 Jahren.

3.2. Forderungen und sonstige Vermögensgegenstände

in EUR (Vorjahr in tEUR) Restlaufzeit bis
1 Jahr
Restlaufzeit von
mehr als 1 Jahr
Bilanzwert
Forderungen gegenüber verbundenen Unternehmen 350.278.797 13.239.140 363.517.937
(29.02.2020) 348.281 15.915 364.196
Sonstige Forderungen und Vermögensgegenstände 11.208 6.394.257 6.405.465
(29.02.2020) 11 6 17
Summe 350.290.005 19.633.397 369.923.402
(29.02.2020) 348.292 15.921 364.213

Die Forderungen gegenüber verbundenen Unternehmen betreffen in Höhe von 359.931.469 € (im Vorjahr 360.594 Tsd. €) sonstige Forderungen und in Höhe von 3.586.468 € (im Vorjahr 3.601 Tsd. €) Forderungen aus Lieferungen und Leistungen.

Die sonstigen Forderungen und Vermögensgegenstände enthalten im Wesentlichen Salden der debitorischen Kreditoren 8.860 €; (Vorjahr 11 Tsd. €), Forderungen aus Kapitalertragsteuer in Höhe von 15.643 € (Vorjahr 19 Tsd. €) sowie Forderungen betreffend Verlustrücktrag für die Jahre 2019 und 2020 in Höhe von 5.866.205 € gegenüber dem Finanzamt Wien 1/23, welche mit der Position Steuerrückstellungen saldiert sind und andere kurzfristige Forderungen.

In den sonstigen Forderungen sind keine wesentlichen Erträge, die erst nach dem Bilanzstichtag zahlungswirksam werden, enthalten.

3.3. Grundkapital

In der 31. ordentlichen Hauptversammlung der AGRANA Beteiligungs-Aktiengesellschaft, Wien, am 6. Juli 2018 wurde ein Aktiensplit im Verhältnis 1:4 beschlossen. Dadurch stieg die Anzahl der Aktien mit Wirksamkeit am 24. Juli 2018 von bisher 15.622.244 auf 62.488.976 auf Inhaber lautende Stückaktien. Das Grundkapital von 113.531.274,76 € blieb unverändert.

3.4. Kapitalrücklagen

Stand 01.03.2020 Veränderung Stand 28.02.2021
EUR EUR EUR
Gebundene Kapitalrücklage 505.122.086 0 505.122.086
Nicht gebundene Kapitalrücklage 45.566.884 0 45.566.884
Summe 550.688.970 0 550.688.970

3.5. Gewinnrücklagen

Stand 01.03.2020 Veränderung Stand 28.02.2021
EUR EUR EUR
Gesetzliche Gewinnrücklage 47.964 0 47.964
Andere Rücklagen (freie Rücklagen) 13.880.000 0 13.880.000
Summe 13.927.964 0 13.927.964

3.6. Rückstellungen

Die Berechnung der Rückstellungen für Abfertigungen, Pensionen und der sonstigen Rückstellungen wird unter den Bilanzierungs- und Bewertungsgrundsätzen erläutert.

Die Effekte aus Personalrückstellungsänderungen werden im Personalaufwand erfasst.

Die Abfertigungs-, Pensions- und sonstigen Rückstellungen gliedern sich wie folgt:

Stand Stand
01.03.2020 Verbrauch Auflösung Zuweisung 28.02.2021
EUR EUR EUR EUR EUR
Abfertigung 4.782.033 1.365.275 0 0 3.416.757
Pensionsansprüche 11.490.850 0 317.030 1.115.798 12.289.618
Jubiläumsgelder 455.274 177 0 5.881 460.978
Altersteilzeit 0 0 0 25.073 25.073
Nicht konsumierte Urlaube 1.412.407 0 0 441.006 1.853.413
Sonderzahlungen 389.484 7.946 0 0 381.538
Prüfungsaufwand 27.000 27.000 0 164.400 164.400
Veröffentlichungsaufwand 151.000 150.500 500 161.000 161.000
Kosten der Hauptversammlung 57.000 57.000 0 75.000 75.000
Kosten Bilanzpressekonferenz 2.000 2.000 0 2.000 2.000
Aufsichtsratsvergütungen 325.000 325.000 0 325.000 325.000
Sonstige ausstehende Eingangsrechnungen 473.770 422.562 51.208 396.700 396.700
Summe 19.565.818 2.357.461 368.738 2.711.859 19.551.478

Die Rückstellung für ausstehende Eingangsrechnungen betrifft im Wesentlichen offene Leistungen für IT-Projekte und Abrechnungen.

3.7. Verbindlichkeiten

28.02.2021 29.02.2020
TEUR
EUR
Verbindlichkeiten gegenüber Kreditinstituten 221.000.000 247.000
davon mit einer Restlaufzeit von bis zu einem Jahr EUR 0 0
davon mit einer Restlaufzeit von mehr als einem Jahr 92.000.000 118.000
davon mit einer Restlaufzeit von mehr als fünf Jahren 129.000.000 129.000
Verbindlichkeiten aus Lieferungen und Leistungen 1.355.777 1.516
davon mit einer Restlaufzeit von bis zu einem Jahr 1.355.777 1.516
davon mit einer Restlaufzeit von mehr als einem Jahr 0 0
davon mit einer Restlaufzeit von mehr als fünf Jahren 0 0
Verbindlichkeiten gegenüber verbundenen Unternehmen 14.929.624 7.735
davon mit einer Restlaufzeit bis zu einem Jahr 2.193.953 703
davon mit einer Restlaufzeit von mehr als einem Jahr 12.735.671 7.032
Sonstige Verbindlichkeiten 8.382.704 6.012
davon mit einer Restlaufzeit von bis zu einem Jahr 8.382.704 6.012
Summe 245.668.105 262.264
davon mit einer Restlaufzeit bis zu einem Jahr 11.932.434 8.232
davon mit einer Restlaufzeit von mehr als einem Jahr 104.735.671 125.032
davon mit einer Restlaufzeit von mehr als fünf Jahren 129.000.000 129.000

Die Verbindlichkeiten gegenüber Kreditinstituten enthalten ein Schuldscheindarlehen über 221.000.000 €, 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 5.771.106 € (im Vorjahr 3.308 Tsd. €) und Verbindlichkeiten aus Steuern und im Rahmen der sozialen Sicherheit in Höhe von 1.062.602 € (im Vorjahr 1.031 Tsd. €) enthalten.

In den Verbindlichkeiten gegenüber verbundenen Unternehmen sind sonstige Verbindlichkeiten in Höhe von 14.929.624 € (im Vorjahr 7.735 Tsd. €) enthalten, welche fast ausschließlich die Verrechnungen aus der Gruppenbesteuerung betreffen.

Die Miete im Raiffeisenhaus für das Geschäftsjahr 2020/21 beträgt 1.646.261 € (im Vorjahr 1.634 Tsd. €). Für fünf Jahre beträgt die Miete aus heutiger Sicht insgesamt 8.231.306 €.

3.8. Haftungsverhältnisse, sonstige Verpflichtungen (§ 237 Abs 1 Z 2)

28.02.2021 29.02.2020
EUR TEUR
Haftungen aus Wechselobligo 7.800.000 7.800
Haftungen aus Zahlungsgarantien 342.760.934 280.573
Summe 350.560.934 288.373
davon gegenüber verbundenen Unternehmen 301.540.792 239.931

4. ERLÄUTERUNG ZUR GEWINN- UND VERLUSTRECHNUNG

Die Gewinn- und Verlustrechnung umfasst im Berichtsjahr den Zeitraum vom 01. März 2020 bis 28. Februar 2021, im Vorjahr jenen vom 01. März 2019 bis 29. Februar 2020.

4.1. Umsatzerlöse

Die Umsatzerlöse in Höhe von 36.665.505 € (im Vorjahr 35.137 Tsd. €) beinhalten im Wesentlichen Erträge aus der Konzernverrechnung und Erträge für die Nutzung der Lizenzen für Markenrechte (Royalties).

4.2. Erträge aus dem Abgang von Anlagevermögen

Die Erträge aus dem Abgang von Anlagevermögen mit Ausnahme der Finanzanlagen belaufen sich auf 67.757 € (im Vorjahr 4 Tsd. €).

4.3. Erträge aus der Auflösung von Rückstellungen

Die Erträge aus der Auflösung von Rückstellungen von 51.708 € (im Vorjahr 171 Tsd. €) beinhalten im Wesentlichen die Auflösung von Rückstellungen für ausstehende Eingangsrechnungen betreffend IT-Leistungen, Pensionskasse und Konzernkommunikation.

4.4. Übrigen sonstigen betrieblichen Erträge

Die übrigen sonstigen betrieblichen Erträge von 2.646 € (im Vorjahr 30 Tsd. €) enthalten Erträge aus realisierten Gewinnen aus Kursdifferenzen und Erträge aus Versicherungsansprüchen.

4.5. Personalaufwand

2020 21 2019 20
EUR TEUR
Gehälter 18.468.385 15.980
Aufwendungen für Abfertigung –45.578 244
Leistungen an betriebliche Mitarbeitervorsorgekassen (MVK) 194.200 179
Aufwendungen für Altersversorgung 1.340.253 2.815
Sozialabgaben und Personalnebenkosten 3.157.418 3.019
Sonstige Sozialaufwendungen 242.534 286
Summe 23.357.211 22.524

davon entfallen

Abfertigungen und Leistungen an
betriebliche Mitarbeitervorsorgekassen
Pensionen (Rückstellungen)
2020 21 2019 20 2020 21 2019 20
EUR TEUR EUR TEUR
Vorstand u. Personen lt. § 80 AktG –11.931 137 1.315.528 2.790
andere Arbeitnehmer 160.553 287 24.725 25
Summe 148.622 424 1.340.253 2.815

Die durchschnittliche Zahl der Arbeitnehmer (Headcount, ohne Vorstandsmitglieder) während des Geschäftsjahres betrug 163 Angestellte, dies entspricht 151.7 FTE (im Vorjahr 161 Headcount entspricht 149.2 FTE).

Die Gesamtbezüge der Vorstandsmitglieder betrugen im Berichtsjahr 4.121.006 € (im Vorjahr 3.936 Tsd. €). An die Pensionskasse wurden an laufenden Beiträgen 439.467 € (im Vorjahr 1.446 Tsd. €) für die Vorstandsmitglieder bezahlt. Weiters wurde bei der Vorsorge für künftige Pensionsansprüche ein Betrag in Höhe von 317.030 € (im Vorjahr 1.304 Tsd. €) zugeführt.

Die Mitglieder des Aufsichtsrates erhielten für ihre Tätigkeit im Geschäftsjahr 2020/21 eine Vergütung von EUR 325.000 € (im Vorjahr 325 Tsd. €).

In den Löhnen und Gehältern sind Dotierungen der Rückstellungen für Jubiläumsgelder in Höhe von EUR –178 € (Vorjahr: 33 Tsd. €) enthalten.

Im Posten "Sonstige Verbindlichkeiten" sind Aufwendungen in Höhe von EUR 6.377.085 € (Vorjahr: 3.930 Tsd. €) enthalten, die erst nach dem Bilanzstichtag zahlungswirksam werden.

4.6. Sonstige betriebliche Aufwendungen

Die übrigen sonstigen betriebliche Aufwendungen betragen 24.659.889 € (im Vorjahr –25.091 Tsd. € ) und umfassen im Wesentlichen EDV-Aufwand inkl. EDV Beratung von 12.727.433 € (im Vorjahr 11.926 Tsd. €), Rechts-, Prüfungs- und Beratungsaufwendungen von 2.007.177 € (im Vorjahr 1.618 Tsd. €), Leasing, Mieten und Pachten von 2.366.947 € (im Vorjahr 2.349 Tsd. €), Werbeaufwendungen von 1.071.812 € (im Vorjahr 2.038 Tsd. €), Bankgebühren 106.215 € (im Vorjahr 104 Tsd. €) sowie andere Aufwendungen in Höhe von 6.380.306 € (im Vorjahr 7.055 Tsd. €).

4.7. Erträge aus Beteiligungen

2020 21 2019 20
EUR TEUR
Erträge von verbundenen Unternehmen 50.213.080 74.793
Erträge von sonstigen Beteiligungen 21.600 17
Summe 50.234.680 74.810

4.8. Steuern vom Einkommen

2020 21 2019 20
EUR TEUR
Körperschaftsteuer 5.862.704 -2.081
Körperschaftsteuer Vorperioden 252.705 -198
Steuerumlagen –2.881.301 2.822
Lat. Ertragsst. a. Bewertungsdiff. 0 30
Lat. Ertragsst. auf Verlustvort. 1.819.310 0
nicht abzugsfähige Quellensteuer –111.651 -253
Summe 4.941.767 320

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 Sales & Marketing GmbH, 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.

5. SONSTIGE ANGABEN

5.1. Beziehungen zu verbundenen Unternehmen (§ 238 Abs. 1 Z 20 UGB)

AGRANA AGRO SRL, Roman, Rumänien AGRANA BiH Holding GmbH, Wien, Österreich AGRANA BUZAU SRL, Buzau, Rumänien AGRANA Fruit Algeria Holding GmbH, Wien, Österreich 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 Dachang Co., Ltd, Dachang, China AGRANA Fruit France S.A.S, Mitry-Mory, Frankreich AGRANA Fruit Germany GmbH, Konstanz, Deutschland AGRANA FRUIT INDIA PRIVATE LIMITED, Pune, Indien AGRANA Fruit Istanbul Gida Sanayi ve Ticaret A.S., Istanbul, Türkei AGRANA Fruit Japan Co., Ltd., Tokyo, Japan 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, Mexiko AGRANA Fruit Luka TOV, Winniza, Ukraine AGRANA Fruit Management Australia Pty Ltd., Sydney, Australien AGRANA Fruit México, S.A. de C.V., Michoacán, Mexiko 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 (XIANYANG) CO.,LTD, Xianyang City, China AGRANA Magyarorzág Értékesitési Kft., Budapest, Ungarn AGRANA Nile Fruits Processing (SAE), Qalyoubia, Ägypten AGRANA Research & Innovation Center GmbH, Wien, Österreich AGRANA Romania S.R.L., Bukarest, Rumänien AGRANA Sales & Marketing GmbH, Wien, Österreich AGRANA Stärke GmbH, Wien, Österreich AGRANA Trading EOOD, Sofia, Bulgarien AGRANA Zucker GmbH, Wien, Österreich AUSTRIA JUICE GmbH, Kröllendorf/Allhartsberg, Österreich AUSTRIA JUICE Germany GmbH, Bingen, Deutschland (vormals AGRANA Juice Sales & Marketing GmbH) AUSTRIA JUICE Hungary Kft., Vásarosnamény, Ungarn AUSTRIA JUICE Poland Sp.z.o.o., Chelm, Polen AUSTRIA JUICE Romania SRL, Vaslui, Rumänien AUSTRIA JUICE Ukraine TOV, Winniza, Ukraine Biogáz Fejlesztő Kft., Kaposvár, Ungarn Dirafrost FFI N.V., Lummen, 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 Moravskoslezské Cukrovary A.S., Hrušovany, Tschechien Marroquin Organic International, Inc., Santa Cruz, USA o.o.o. AGRANA Fruit Moscow Region, Serpuchov, Russland AGRANA Amidi srl, Sterzing, Italien

Österreichische Rübensamenzucht Gesellschaft m.b.H., Wien, Österreich S.C. A.G.F.D. Tandarei s.r.l., Țăndărei, Rumänien Slovenské Cukrovary s.r.o., Sered, Slowakei SPA AGRANA Fruit Algeria, Akbou, Algerien Yube d.o.o. – u likvidaciji, Požega, Serbien

SÜDZUCKER Aktiengesellschaft Mannheim/Ochsenfurt, Mannheim, Deutschland mit ihren Tochtergesellschaften

5.2. Beziehungen zu assoziierten Unternehmen

"AGRAGOLD" d.o.o., Brčko, Bosnien-Herzegowina AGRAGOLD d.o.o., Zagreb, Kroatien AGRAGOLD dooel, Skopje, Nordmazedonien AGRAGOLD trgovina d.o.o., Ljubljana, Slowenien AGRANA STUDEN Albania sh.p.k., Tirana, Albanien AGRANA-STUDEN Beteiligungs GmbH, Wien, Österreich AGRANA-STUDEN Kosovo L.L.C., Pristina, Kosovo AGRANA-STUDEN Sugar Trading GmbH, Wien, Österreich Beta Pura GmbH, Wien, Österreich Company for trade and services AGRANA-STUDEN Serbia d.o.o. Beograd, Belgrad, Serbien GreenPower Services Kft, Szabadegyháza, Ungarn HUNGRANA Keményitö- és Isocukorgyártó és Forgalmazó Kft., Szabadegyháza, Ungarn STUDEN-AGRANA Rafinerija Secera d.o.o., Brčko, Bosnien und Herzegowina

Zu den angeführten Unternehmen bestehen fremdübliche Dienstleistungsbeziehungen.

6. AUFWENDUNGEN FÜR DEN ABSCHLUSSPRÜFER (§ 238 ABS 1 Z18 UGB)

2020 21 2019 20
Andere Andere
Jahres Bestätigungs Jahres Bestätigungs
abschluss leistungen Gesamt abschluss leistungen Gesamt
EUR EUR EUR TEUR TEUR TEUR
PwC Wirtschaftsprüfung GmbH 10.150 263.900 274.050 10.000 260.000 270.000
Summe 10.150 263.900 274.050 10.000 260.000 270.000

7. WESENTLICHE EREIGNISSE NACH DEM BILANZSTICHTAG

Nach dem Bilanzstichtag am 28. Februar 2021 sind keine Vorgänge von besonderer Bedeutung eingetreten, die einen wesentlichen Einfluss auf die Ertrags-, Finanz- und Vermögenslage der AGRANA hatten.

8. ERGEBNISVERWENDUNG

Es wird vorgeschlagen, aus dem Bilanzgewinn in Höhe von 68.942.319 € eine Dividende von EUR 0,85 je Aktie, das sind in Summe EUR 53.115.630 auszuschütten und den Restbetrag auf neue Rechnung vorzutragen.

9. ORGANE UND ARBEITNEHMER (§ 239 UGB)

Aufsichtsrat:

Mag. Erwin HAMESEDER, Mühldorf Vorsitzender
Mag. Klaus BUCHLEITNER, MBA, Wien Stellvertreter des Vorsitzenden
Dr. Hans-Jörg GEBHARD, Eppingen Stellvertreter des Vorsitzenden
Dr. Wolfgang HEER, Mannheim (bis 04.03.2020) Stellvertreter des Vorsitzenden
Dipl.-Ing. Josef PRÖLL, Wien
Dipl.-Ing. Ernst KARPFINGER, Oberweiden
Dr. Thomas KIRCHBERG, Ochsenfurt
Dipl.-Ing. Helmut FRIEDL, Egling a.d.Paar
MMag. Dr. Andrea GRITSCH, Wien (seit 05.08.2020)

Vom Betriebsrat delegiert:

Dipl.Ing. Stephan SAVIC, Wien Andreas KLAMLER, Gleisdorf Thomas BUDER, Katzelsdorf Gerhard KOTTBAUER, Aschach

Vorstand:

Dipl.-Ing. Johann MARIHART, Limberg Vorsitzender Mag. Dipl.-Ing. Dr. Fritz GATTERMAYER, Klosterneuburg Mag. Stephan BÜTTNER, Wien Dkfm. Thomas KÖLBL, Speyer Dipl.-Ing. Dr. Norbert HARRINGER, Wien

Wien, am 06. Mai 2021

Der Vorstand:

Dipl.-Ing. Johann MARIHART Mag. Dipl.-Ing. Dr. Fritz GATTERMAYER

Mag. Stephan BÜTTNER Dkfm. Thomas KÖLBL

Dipl.-Ing. Dr. Norbert HARRINGER

Entwicklung des Anlagevermögens im Geschäftsjahr 2020/21 Entwicklung des Anlagevermögens Entwicklung des Anlagevermögens im Geschäftsjahr 2020/21

im Geschäftsjahr 2020|21

ANLAGEVERMÖGEN
ANLAGEVERMÖGEN
ANLAGEVERMÖGEN
Anschaffungskosten
Stand Zugang Abgang Stand Stand
01.03.2020 28.02.2021 01.03.2020
01.03.2020
I. Immaterielle Vermögensgegenstände I. Immaterielle Vermögensgegenstände
I. Immaterielle Vermögensgegenstände
1. Markenrechte 611.301
1. Markenrechte
1. Markenrechte
0
0 611.301 611.301
2. EDV-Software 11.248.245
2. EDV-Software
2. EDV-Software
105.451
0 11.353.696 10.264.953
11.859.545 105.451 0 11.964.997 10.876.254
II. Sachanlagen II. Sachanlagen II. Sachanlagen
1. Betriebs- und Geschäftsausstattung 5.203.225 644.586 1. Betriebs- und Geschäftsausstattung
1. Betriebs- und Geschäftsausstattung
681.423
5.166.388
2. Geringwertige Vermögensgegenstände 0 31.811 2. Geringwertige Vermögensgegenstände
2. Geringwertige Vermögensgegenstände
31.811
0
5.203.225 676.397 713.234 5.166.388
III. Finanzanlagen III. Finanzanlagen
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen 424.145.490 0 1. Anteile an verbundenen Unternehmen
1. Anteile an verbundenen Unternehmen
0
424.145.490
2. Ausleihungen an verbundenen Unternehmen 247.000.000 0 2. Ausleihungen an verbundenen Unternehmen
26.000.000
2. Ausleihungen an verbundenen Unternehmen
221.000.000
3. Wertpapiere (Wertrechte) des Anlagevermögens 258.620 0 0 3. Wertpapiere (Wertrechte) des Anlagevermögens
3. Wertpapiere (Wertrechte) des Anlagevermögens
258.620
671.404.110 0 26.000.000 645.404.110
Gesamtsumme 688.466.881
Gesamtsumme
Gesamtsumme
781.849
26.713.234 662.535.495
Anschaffungskosten ANLAGEVERMÖGEN
Anschaffungskosten
ANLAGEVERMÖGEN
Anschaffungskosten
Abschreibungen
Abschreibungen Buchwerte
Abschreibungen
Abschreibungen
Buchwerte
Anschaffungskosten
Anschaffungskosten
Abgang
Stand
Stand
Stand
Stand
Stand
Zugang
Jahresab-
Zugang
Stand
Abgang
Jahresab-
Abgang
Abgang
Stand
Abgang
Stand
Stand
Stand
Stand
Stand
Jahresab-
Stand
Jahresab-
Stand
Zugang
Abgang
Zugang
Abgang
Stand
Abgang
Stand
28.02.2021
01.03.2020
01.03.2020
28.02.2021
01.03.2020
schreibung
01.03.2020
schreibung
I. Immaterielle Vermögensgegenstände
I. Immaterielle Vermögensgegenstände
28.02.2021
28.02.2021
28.02.2021
01.03.2020
28.02.2021
01.03.2020
01.03.2020
schreibung
28.02.2021
01.03.2020
29.02.2020
schreibung
29.02.2020
28.02.2021
611.301
0
611.301
611.301
611.301
611.301
1. Markenrechte
1. Markenrechte
0
611.301
0
0
0
0
0
0
611.301
611.301
611.301
0
611.301
611.301
611.301
0
611.301
0
611.301
0
0
0
0
0
611.301
0
0
11.353.696
11.248.245
0
10.264.953
11.353.696
11.248.245
2. EDV-Software
105.451
2. EDV-Software
10.264.953
695.444
105.451
0
695.444
0
11.353.696
0
10.960.397
11.353.696
0
10.264.953
10.960.397
10.264.953
393.299
11.248.245
695.444
11.248.245
393.299
983.291
695.444
105.451
0
105.451
983.291
10.960.397
0
11.964.997
11.859.545
0
10.876.254
11.964.997
11.859.545
105.451
10.876.254
695.444
105.451
II. Sachanlagen
II. Sachanlagen
0
695.444
0
11.964.997
0
11.571.698
11.964.997
0
10.876.254
11.571.698
10.876.254
393.299
11.859.545
695.444
11.859.545
393.299
983.291
695.444
105.451
0
105.451
983.291
11.571.698
0
5.166.388
681.423
5.203.225
4.153.235
5.166.388
5.203.225
644.586
4.153.235
461.247
644.586
1. Betriebs- und Geschäftsausstattung
1. Betriebs- und Geschäftsausstattung
681.423
637.729
461.247
681.423
5.166.388
3.976.753
5.166.388
637.729
4.153.235
3.976.753
1.189.635
4.153.235
5.203.225
461.247
1.189.635
5.203.225
1.049.990
461.247
644.586
637.729
1.049.990
644.586
637.729
3.976.753
681.423
31.811
0
0
0
0
0
31.811
31.811
31.811
2. Geringwertige Vermögensgegenstände
2. Geringwertige Vermögensgegenstände
0
31.811
31.811
31.811
31.811
0
31.811
0
0
0
0
0
31.811
0
31.811
0
31.811
31.811
31.811
31.811
31.811
0
5.166.388
713.234
5.203.225
4.153.235
5.166.388
5.203.225
676.397
4.153.235
493.058
676.397
III. Finanzanlagen
III. Finanzanlagen
713.234
669.540
493.058
713.234
5.166.388
3.976.753
5.166.388
669.540
4.153.235
3.976.753
1.189.635
4.153.235
5.203.225
493.058
1.189.635
5.203.225
1.049.990
493.058
676.397
669.540
1.049.990
676.397
669.540
3.976.753
713.234
424.145.490
424.145.490
0
424.145.490
424.145.490
7.120.724
7.120.724
0
1. Anteile an verbundenen Unternehmen
1. Anteile an verbundenen Unternehmen
0
0
0
0
0
424.145.490
0
424.145.490
7.120.724
0
7.120.724
417.024.766
7.120.724
7.120.724
424.145.490
424.145.490
417.024.766
0
0
417.024.766
0
0
7.120.724
0
0
221.000.000
26.000.000
247.000.000
221.000.000
247.000.000
0
0 2. Ausleihungen an verbundenen Unternehmen
2. Ausleihungen an verbundenen Unternehmen
26.000.000
0
0
0
26.000.000
0
0
221.000.000
221.000.000
0
0
221.000.000
0
247.000.000
0
0
221.000.000
247.000.000
0
0
247.000.000
0
0
26.000.000
0
0
258.620
0
258.620
258.620
258.620
0
0 3. Wertpapiere (Wertrechte) des Anlagevermögens
3. Wertpapiere (Wertrechte) des Anlagevermögens
0
0
0
0
0
0
0
258.620
258.620
0
0
0
258.620
0
258.620
0
0
258.620
0
0
0
258.620
0
0
645.404.110
26.000.000
671.404.110
645.404.110
671.404.110
7.120.724
7.120.724
0
26.000.000
0
0
26.000.000
0
0
645.404.110
645.404.110
7.120.724
0
7.120.724
638.283.386
7.120.724
7.120.724
671.404.110
638.283.386
671.404.110
664.283.386
0
0
664.283.386
0
0
26.000.000
7.120.724
0
0
662.535.495
26.713.234
688.466.881
662.535.495
22.150.213
688.466.881
Gesamtsumme
781.849
Gesamtsumme
22.150.213
1.188.502
781.849
26.713.234
26.713.234
1.188.502
669.540
662.535.495
22.669.176
662.535.495
669.540
22.150.213
639.866.319
22.669.176
22.150.213
688.466.881
1.188.502
639.866.319
688.466.881
666.316.667
1.188.502
781.849
669.540
666.316.667
781.849
669.540
26.713.234
22.669.176

Parent company management report

for the year ended 28 February 2021

INHALTSVERZEICHNIS

207 Überblick
24
Überblick
209 Geschäftsverlauf und wirtschaftliche Lage
26
Geschäftsverlauf und wirtschaftliche Lage der AGRANA Beteiligungs-Aktiengesellschaft
der AGRANA Beteiligungs-Aktiengesellschaft
211 28
Beteiligungen der AGRANA Beteiligungs-Aktiengesellschaft
Beteiligungen der
AGRANA Beteiligungs-Aktiengesellschaft
33
Umwelt und Nachhaltigkeit
  • Forschung und Entwicklung 34 Umwelt und Nachhaltigkeit 216
  • Personal- und Sozialbericht 35 Forschung und Entwicklung 217
  • Risikomanagement und internes Kontrollsystem 37 Personal- und Sozialbericht 218
  • Berichterstattung gemäß §243a Abs 2 UGB 43 Risikomanagement und internes Kontrollsystem 220
  • Kapital-, Anteils-, Stimm- und Kontrollrechte 44 Berichterstattung gemäß §243a Abs 2 UGB 226
  • Corporate Governance Bericht 45 Kapital-, Anteils-, Stimm- und Kontrollrechte 227
  • Zweigniederlassungen 46 Corporate Governance Bericht 228
  • Ereignisse nach dem Bilanzstichtag 46 Zweigniederlassungen 229
  • Prognosebericht 46 Ereignisse nach dem Bilanzstichtag 229
  • Prognosebericht 229

ÜBERBLICK

Die AGRANA Beteiligungs-Aktiengesellschaft ist als international ausgerichtetes österreichisches Industrieunternehmen in ihrer Konzerntätigkeit in den Segmenten Zucker und Stärke hauptsächlich in Europa und im Segment Frucht weltweit tätig und strebt in diesen Märkten eine führende Position in der industriellen Veredelung von agrarischen Rohstoffen an. Die AGRANA Beteiligungs-Aktiengesellschaft bildet 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 widerspiegeln, 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 solide Marktstellung gegenüber den Mitbewerbern in allen Produktgruppen sowie die nötige Innovationskraft und die Wettbewerbsfähigkeit von AGRANA geschaffen.

Das Segment Frucht umfasst für Kunden individuell konzipierte und produzierte Fruchtzubereitungen und Fruchtsaftkonzentrate. AGRANA ist der weltweit führende Hersteller von Fruchtzubereitungen für die Molkerei-, Backwaren-, Eiscreme- und Food Service-Industrie. Die in Zubereitungen verarbeiteten Früchte werden größtenteils in tiefgefrorener oder aseptischer Form von Erstverarbeitern bezogen. In einigen Ländern betreibt AGRANA auch eigene Anlagen der ersten Verarbeitungsstufe, in denen frische Früchte teilweise von Vertragsanbauern übernommen und für die Verarbeitung in Fruchtzubereitungen vorbereitet werden. Im Bereich Fruchtsaftkonzentrate werden v.a. an europäischen Produktionsstandorten Apfel- und Beerensaftkonzentrate ebenso wie Direktsäfte und Fruchtweine sowie Getränkegrundstoffe und Aromen hergestellt. AGRANA legt Wert auf eine möglichst nachhaltige, vollständige Verwertung der eingesetzten agrarischen Rohstoffe. Während in der Herstellung von Fruchtzubereitungen kaum Reststoffe anfallen, werden die bei der Produktion von Apfelsaftkonzentrat verbleibenden Presskuchen, sogenannte (Apfel-)Trester, von der Pektinindustrie und als Futtermittel genutzt. Das Segment Frucht umfasst für Kunden individuell konzipierte und produzierte Fruchtzubereitungen und Fruchtsaftkonzentrate. AGRANA ist der weltweit führende Hersteller von Fruchtzubereitungen für die Molkerei-, Backwaren-, Eiscreme- und Food Service-Industrie. Die in Zubereitungen verarbeiteten Früchte werden größtenteils in tiefgefrorener oder aseptischer Form von Erstverarbeitern bezogen. In einigen Ländern betreibt AGRANA auch eigene Anlagen der ersten Verarbeitungsstufe, in denen frische Früchte teilweise von Vertragsanbauern übernommen und für die Verarbeitung in Fruchtzubereitungen vorbereitet werden. Im Bereich Fruchtsaftkonzentrate werden v.a. an europäischen Produktionsstandorten Apfel- und Beerensaftkonzentrate ebenso wie Direktsäfte und Fruchtweine sowie Getränkegrundstoffe und Aromen hergestellt. AGRANA legt Wert auf eine möglichst nachhaltige, vollständige Verwertung der eingesetzten agrarischen Rohstoffe. Während in der Herstellung von Fruchtzubereitungen kaum Reststoffe anfallen, werden die bei der Produktion von Apfelsaftkonzentrat verbleibenden Presskuchen, sogenannte (Apfel-)Trester, von der Pektinindustrie und als Futtermittel genutzt.

Im Segment Stärke verarbeitet und veredelt AGRANA sowohl aus Vertragslandwirtschaft stammende als auch über den Handel bezogene Rohstoffe (primär Mais, Weizen und Kartoffeln) zu hochwertigen Stärkeprodukten. Die erzeugten Produkte werden an die Nahrungs- und Genussmittelindustrie und auch an die Papier-, Textil-, Kosmetik-, Baustoffindustrie sowie andere technische Industriezweige geliefert. Im Rahmen der Stärkegewinnung werden auch Dünge- und hochwertige Futtermittel erzeugt. Die Produktion von Bioethanol, das als klimaschonende Komponente Benzin beigemischt wird, ist ebenfalls Teil des Segmentes Stärke. Im Segment Stärke verarbeitet und veredelt AGRANA sowohl aus Vertragslandwirtschaft stammende als auch über den Handel bezogene Rohstoffe (primär Mais, Weizen und Kartoffeln) zu hochwertigen Stärkeprodukten. Die erzeugten Produkte werden an die Nahrungs- und Genussmittelindustrie und auch an die Papier-, Textil-, Kosmetik-, Baustoffindustrie sowie andere technische Industriezweige geliefert. Im Rahmen der Stärkegewinnung werden auch Dünge- und hochwertige Futtermittel erzeugt. Die Produktion von Bioethanol, das als klimaschonende Komponente Benzin beigemischt wird, ist ebenfalls Teil des Segmentes Stärke.

AGRANA verarbeitet im Segment Zucker Zuckerrüben aus Vertragslandwirtschaft und raffiniert weltweit bezogenen Rohr-Rohzucker. Die Produkte werden an weiterverarbeitende Industrien z.B. für Süßwaren, alkoholfreie Getränke und Pharmaanwendungen geliefert. Zudem vertreibt AGRANA unter länderspezifischen Marken auch eine breite Palette an Kristallzucker und Zuckerspezialprodukten über den Lebensmittelhandel an Endkonsumenten. Daneben produziert AGRANA im Sinne einer möglichst vollständigen Verwertung der eingesetzten agrarischen Rohstoffe eine Vielzahl an Dünge- und Futtermitteln zum Einsatz in der Landwirtschaft und Nutztierhaltung. Diese leisten nicht nur einen Beitrag zum ökonomischen Erfolg, sondern schließen durch die Rückführung von Nähr- und Mineralstoffen in die Natur auch den ökologischen Kreislauf. AGRANA verarbeitet im Segment Zucker Zuckerrüben aus Vertragslandwirtschaft und raffiniert weltweit bezogenen Rohr-Rohzucker. Die Produkte werden an weiterverarbeitende Industrien z.B. für Süßwaren, alkoholfreie Getränke und Pharmaanwendungen geliefert. Zudem vertreibt AGRANA unter länderspezifischen Marken auch eine breite Palette an Kristallzucker und Zuckerspezialprodukten über den Lebensmittelhandel an Endkonsumenten. Daneben produziert AGRANA im Sinne einer möglichst vollständigen Verwertung der eingesetzten agrarischen Rohstoffe eine Vielzahl an Dünge- und Futtermitteln zum Einsatz in der Landwirtschaft und Nutztierhaltung. Diese leisten nicht nur einen Beitrag zum ökonomischen Erfolg, sondern schließen durch die Rückführung von Nähr- und Mineralstoffen in die Natur auch den ökologischen Kreislauf.

Rund 8.800 Mitarbeiter (FTEs)1 an 56 Produktionsstandorten auf allen Kontinenten erwirtschafteten im Geschäftsjahr 2020/21 einen Konzernumsatz von rund 2,5 Mrd. €. AGRANA wurde 1988 gegründet und notiert seit 1991 an der Wiener Börse. Rund 8.800 Mitarbeiter (FTEs)1 an 56 Produktionsstandorten auf allen Kontinenten erwirtschafteten im Geschäftsjahr 2020/21 einen Konzernumsatz von rund 2,5 Mrd. €. AGRANA wurde 1988 gegründet und notiert seit 1991 an der Wiener Börse.

GESCHÄFTSVERLAUF UND WIRTSCHAFTLICHE LAGE DER AGRANA BETEILIGUNGS-AKTIENGESELLSCHAFT

basierend auf dem Jahresabschluss nach UGB zum 28. Februar 2021

Geschäftsentwicklung 2020 21 2019 20 Veränderung
TEUR TEUR %
Umsatzerlöse 36.666 35.137 4,3%
Sonstige betriebliche Erträge 122 205 -40,4%
Betriebsleistung 36.788 35.342 4,1%
Operatives Ergebnis (Betriebserfolg) -12.418 -13.575 8,5%
Operative Marge1 -33,8% -38,4%
Beteiligungserträge 50.235 74.810 -32,9%
Finanzerfolg 54.377 78.135 -30,4%
Ergebnis vor Steuern 41.959 64.560 -35,0%
Jahresüberschuss 46.901 64.880 -27,7%
Investitionen in Sachanlagen und immaterielle Vermögenswerte 782 728 7,4%
Investitionen in Finanzanlagen 0 204.500 -100,0%

1 Operative Marge = Operatives Ergebnis / Betriebsleistung

Umsatzerlöse

Die Umsatzerlöse der AGRANA lagen im Geschäftsjahr 2020/21 mit 36.666 t€ insgesamt über dem Vorjahresniveau (+1.528 t€ bzw +4,3%). Eine positive Entwicklung zeigten die Erträge aus Konzernverrechnungen (+1.174 t€ bzw +5,9%). Bei den Erträgen aus Lizenzeinnahmen verzeichnete man ebenfalls einen Anstieg (+363 t€ bzw +2,4%). Der Anstieg der Konzernverrechnungen ist grundsätzlich durch die erhöhte projektbezogene Weiterverrechnung der IT-Aufwendungen bedingt.

Ertragslage

Der Betriebserfolg (operatives Ergebnis) war zwar negativ, lag aber mit –12.418 t€ t€ um +1.157 t€ bzw +8,5 % über dem Ergebnis des Vorjahres. Diese Veränderung ist insbesondere auf einen Anstieg der Umsatzerlöse zurückzuführen, während die Personalaufwendungen bei 23.357 t€ (VJ 22.524 t€) leicht anstiegen.

Die sonstigen Aufwendungen haben sich im Vergleich zum Vorjahr um -431 t€ bzw -1,7% reduziert. Der Rückgang ist auf verminderte Werbeaufwendungen zurückzuführen.

Die Beteiligungserträge sanken im Geschäftsjahr 2020/21 um -24.576 t€ bzw -32,9%. Dies ist bedingt durch die AGRANA Sales & Marketing GmbH, die keine Dividenden im Geschäftsjahr ausgeschüttet hat.

Vermögens- und Finanzlage

Bilanzkennzahlen 2020 21 2019 20 Veränderung
TEUR TEUR %
Bilanzsumme 1.012.310 1.031.233 -2%
Grundkapital 113.531 113.531 0%
Immaterielle Vermögensgegenstände und Sachanlagen 1.583 2.033 -22%
Anteile an verbundenen Unternehmen 417.025 417.025 0%
Andere Finanzanlagen 221.259 247.259 -11%
Eigenkapital 747.091 748.306 0%
Eigenkapitalquote1 73,8% 72,6% 2%
Haftungsverhältnisse 350.561 288.373 22%

1 Eigenkapitalquote = Eigenkapital / Gesamtkapital

Die Immateriellen Vermögensgegenstände und Sachanlagen reduzieren sich im Vergleich zum Vorjahr um -450 t€. Den Investitionen in Höhe von 782 t€ stehen Abschreibungen in Höhe von 1.189 t€ gegenüber. Die wesentliche Veränderung betrifft den Buchwertrückgang bei der EDV-Software.

Die Anteile an verbundenen Unternehmen sind im Vergleich zum Vorjahr unverändert.

Andere Finanzanlagen beinhalten Ausleihungen an verbundene Unternehmen und reduzierten sich im Geschäftsjahr 2020/21 um -26.000 t€, dies spiegelt sich analog in den langfristigen Verbindlichkeiten gegenüber Kreditinstituten wider.

Die Eigenkapitalquote von 73,8 % ist im Vergleich zum Vorjahr (72,6 %) leicht gestiegen, und zeigt eine stabile und solide Eigenkapitalausstattung und Bilanzstruktur der Gesellschaft.

Cashflow

2020 21 2019 20 Veränderung
TEUR TEUR %
Cashflow aus laufender Geschäftstätigkeit 90.193 56.008 61%
Cashflow aus Investitionstätigkeit 25.330 -205.173 112%
Cashflow aus Finanzierungstätigkeit -74.117 142.011 -152%
Cashflow aus flüssigen Mitteln 41.406 -7.154 679%
Bestand an flüssigen Mitteln1 290.502 249.097 17%

1 einschließlich Forderungen gegenüber dem Konzern-Cash-Pooling mit AGRANA Group-Services GmbH 28.02.2021: 290.480 t€; 29.02.2020: 249.068 t€

Der Cash-Flow aus der Investitionstätigkeit veränderte sich um 230.502 t€ auf 25.330 t€. Im Geschäftsjahr 2020/21 ist der positive Cashflow vor allem durch eine Reduktion der Ausleihung an ein verbundenes Unternehmen bedingt.

Der Cashflow aus der Finanzierungstätigkeit resultiert aus der Dividendenauszahlung von rd. -48.117 t€ (VJ: -62.489 t€) und der Reduktion der langfristigen Finanzverbindlichkeiten in Höhe von 26.000 t€.

BETEILIGUNGEN DER AGRANA BETEILIGUNGS-AKTIENGESELLSCHAFT

Die Segmente der AGRANA-Gruppe spiegeln sich in der AGRANA Beteiligungs-Aktiengesellschaft im Finanzanlagevermögen unter den Beteiligungen wider.

Die weiteren Beteiligungen der AGRANA-Beteiligungs-Aktiengesellschaft werden bis auf die INSTANTINA Nahrungsmittel Entwicklungs- und Produktions Gesellschaft m.b.H. zu 100 % gehalten. Die restlichen Anteile auf 100 % (33,33 %) der INSTANTINA Nahrungsmittel Entwicklungs- und Produktions Gesellschaft m.b.H werden von der KRÜGER Gesellschaft m.b.H. & Co. KG, Deutschland gehalten.

Die restlichen Anteile auf 100 % der "Segment-Gesellschaften" Stärke und Frucht werden von der Tochtergesellschaft AGRANA Sales & Marketing GmbH (ehem. AGRANA Marketing- und Vertriebsservice Gesellschaft m.b.H.) gehalten.

AGRANA Zucker GmbH

Die AGRANA Sales & Marketing GmbH ist die Dachgesellschaft für die Zuckerverkaufsaktivitäten des Konzerns und fungiert gleichzeitig als Holding für die Zucker-Beteiligungen in Ungarn, Tschechien, der Slowakei, Rumänien, Bulgarien sowie Bosnien und Herzegowina. Die AGRANA Zucker GmbH fungiert als Produktionsunternehmen der beiden österreichischen Zuckerfabriken. Dem Segment Zucker werden weiters die INSTANTINA Nahrungsmittel Entwicklungsund Produktions Gesellschaft m.b.H., Wien, die AGRANA Research & Innovation Center GmbH, Wien, die Österreichische Rübensamenzucht Gesellschaft m.b.H., Wien, sowie die AGRANA Beteiligungs-Aktiengesellschaft, Wien, als Gruppen-Holding zugerechnet. Die Gemeinschaftsunternehmen der AGRANA-STUDEN-Gruppe und der Beta Pura GmbH werden nach der Equity-Methode in den Konzernabschluss einbezogen.

Geschäftsentwicklung

Segment Zucker 2020 21 2019 20 1 Veränderung
%/pp
Umsatzerlöse (brutto) t€ 588.559 536.313 9,7%
Umsätze zwischen den Segmenten t€ -30.038 -48.035 37,5%
Umsatzerlösen t€ 558.521 488.278 14,4%
EBITDA2 t€ 5.068 -11.910 142,6%
Operatives Ergebnis t€ -25.171 -43.683 42,4%
Ergebnisanteil von Gemeinschaftsunternehmen, die nach der
Equity-Methode bilanziert werden t€ -1.887 386 -588,9%
Ergebnis aus Sondereinflüssen t€ -212 -20.854 99,0%
Ergebnis der Betriebstätigkeit (EBIT) t€ -27.270 -64.151 57,5%
EBIT-Marge % -4,9 -13,1 8,3 pp
Investitionen3 t€ 15.905 19.557 -18,7%
Mitarbeiter (FTEs)4 2.003 2.061 -2,8%

1 Die Vorjahreswerte wurden gemäß IAS 8 angepasst.

2 Operatives Ergebnis vor operativen Abschreibungen

3 In Sachanlagen und immaterielle Vermögenswerte, ausgenommen Geschäfts-/Firmenwerte

4 Durchschnittlich im Geschäftsjahr beschäftigte Vollzeitäquivalente (FTEs – Full-time equivalents)

Der Absatz der Zuckerprodukte im Geschäftsjahr 2020/21 lag deutlich über dem Vorjahresniveau, wobei sich die AGRANA-Zuckermärkte unterschiedlich entwickelten. Während die Verkäufe an die Retail- und Industriekunden in Ungarn, Tschechien und der Slowakei gegenüber dem Vorjahr stabil blieben, gingen die Absätze in Österreich, insbesondere im Industriebereich, deutlich zurück. Die Absätze in Rumänien und Bulgarien stiegen im Vergleich zum Vorjahr deutlich.

Seit Beginn des Zuckerwirtschaftsjahres 2020/21 erholten sich die Zuckerverkaufspreise weiter. Im Retailgeschäft waren die Preise im Geschäftsjahr 2020/21 moderat höher als im Vorjahr, im Bereich Industrie lagen die Verkaufspreise aufgrund neuer Verträge mit den Kunden ebenfalls über dem Durchschnittswert des Vorjahres.

Die Ergebnisverbesserung ist im Wesentlichen auf gestiegene Zuckerverkaufspreise und konsequentes Kostenmanagement zurückzuführen.

Das Ergebnis der AGRANA-STUDEN-Gruppe wirkte sich auch 2020/21 positiv auf das EBIT des Segmentes Zucker aus. Der Ergebnisbeitrag reduzierte sich jedoch von 0,6 Mio. € auf 0,2 Mio. €. Das zweite Zucker-Joint Venture, die Beta Pura GmbH, wirkte sich aufgrund eines späteren Produktionsstarts und eines COVID-19-bedingt herausfordernden Marktumfeldes mit -2,1 Mio. € (Vorjahr: -0,2 Mio. €) auf das Ergebnis von Gemeinschaftsunternehmen aus.

Das Ergebnis aus Sondereinflüssen betrug -0,2 Mio. € nach -20,9 Mio. € im Vorjahr, wobei dieses im Vorjahr durch eine Abschreibung des Firmenwerts nachträglich korrigiert worden war.

AGRANA Stärke GmbH

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 Weizenstärkeund 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.

Geschäftsentwicklung

Segment Stärke 2020 21 2019 20 Veränderung
%/pp
Umsatzerlöse (brutto) t€ 831.867 816.802 1,8%
Umsätze zwischen den Segmenten t€ -9.975 -9.805 -1,7%
Umsatzerlösen t€ 821.892 806.997 1,8%
EBITDA1 t€ 92.117 93.885 -1,9%
Operatives Ergebnis t€ 45.402 58.817 -22,8%
Ergebnisanteil von Gemeinschaftsunternehmen, die nach der
Equity-Methode bilanziert werden t€ 19.400 16.341 18,7%
Ergebnis der Betriebstätigkeit (EBIT) t€ 64.802 75.158 -13,8%
EBIT-Marge % 7,9 9,3 -1,4 pp
Investitionen2 t€ 22.199 73.609 -69,8%
Mitarbeiter (FTEs)3 1.149 1.087 5,7%

1 Operatives Ergebnis vor operativen Abschreibungen

2 In Sachanlagen und immaterielle Vermögenswerte, ausgenommen Geschäfts-/Firmenwerte

3 Durchschnittlich im Geschäftsjahr beschäftigte Vollzeitäquivalente (FTEs – Full-time equivalents)

Die COVID-19-Pandemie beeinflusste auch das Marktgeschehen auf den Produktmärkten des Segmentes Stärke maßgeblich. Ein vorrangiges Ziel war es, Lieferketten und Produktion durchgängig aufrechtzuerhalten und die Versorgung der Kunden sicherzustellen.

In einem hochvolatilen Geschäftsumfeld stieg der Umsatz leicht auf 831,9 Mio. €. Bei den Hauptprodukten konnte eine moderate Steigerung der Absatzmengen erzielt werden, bei gleichzeitig hohem Preisdruck aufgrund einer schwächeren Nachfrage. Vor allem bei den Stärken, aber auch bei den Verzuckerungsprodukten ging die Marktnachfrage COVID-19 bedingt zurück. Bei Bioethanol lagen die Platts-Notierungen mit 585 € pro m3 im Jahresdurchschnitt um rund 35 € pro m3 unter dem Vorjahreswert. Die Umsätze der eigengefertigten Nebenprodukte stiegen v.a. aufgrund höherer Absatzmengen von Weizengluten. Die Umsatzerlöse im Futtermittelhandel sanken mengenbedingt.

Der Rohstoffaufwand stieg v.a. aufgrund einer höheren Weizenverarbeitungsmenge in Pischelsdorf|Österreich. Rohstoffe aus der Ernte 2019 konnten zu Preisen auf Höhe des langjährigen Durchschnittes bezogen werden. Für Getreide aus der Ernte 2020 lagen die Preise bis in den Spätherbst 2020 auf dem erwarteten Vorjahresniveau, stiegen aber seither deutlich an. Moderat höhere Personalkosten und deutlich höhere Abschreibungen sind vorrangig auf den Kapazitätsausbau in Pischelsdorf zurückzuführen. Insgesamt konnte im Berichtsjahr ein EBITDA von 92,1 Mio. € erzielt werden, das leicht unter jenem des Vorjahres lag. Das operative Ergebnis betrug 45,4 Mio. € und lag um 22,8 % unter dem Vorjahreswert.

Im Geschäftsjahr 2020/21 stagnierte der Umsatz der ungarischen HUNGRANA-Gruppe mit 287,2 Mio. € auf dem Vorjahresniveau. Bei Verzuckerungsprodukten blieb das Marktumfeld schwierig und führte zu deutlichen Preis- und Absatzrückgängen. Im Bioethanolgeschäft gingen die Ethanolnotierungen im Vergleich zum Vorjahr zurück. Positive Ergebniseffekte konnten durch Kursgewinne der auf Euro-Basis fixierten Exporte erzielt werden. Insgesamt wies die HUNGRANA-Gruppe ein EBIT von 45,4 Mio. € (Vorjahr: 39,7 Mio. €) aus. Das PAT betrug 38,8 Mio. € (Vorjahr: 32,6 Mio. €), womit der Ergebnisbeitrag für das Segment Stärke auf 19,4 Mio.€ (Vorjahr: 16,3 Mio. €) anstieg.

Mit Beginn des Geschäftsjahres erwarb die AGRANA Stärke GmbH das in Santa Cruz|USA angesiedelte Unternehmen Marroquin Organic International, Inc. Dieses ist ein auf Bio-Produkte spezialisiertes Handelshaus, das B2B-Kunden bedient und einen Großteil seines Produktportfolios von AGRANA bezieht. Diese Gesellschaft wird seit 1. März 2020 nach den Grundsätzen der Vollkonsolidierung in den Konzernabschluss einbezogen.

AGRANA Internationale Verwaltungs- und Asset-Management GmbH

Die AGRANA Internationale Verwaltungs- und Asset-Management GmbH, Wien, ist die Dachgesellschaft für das Segment Frucht. Die Koordination und operative Führung für den Geschäftsbereich 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. Insgesamt sind dem Segment zum Bilanzstichtag 26 Produktionsstandorte in 19 Ländern für Fruchtzubereitungen und 15 Werke in sieben Ländern für die Herstellung von Apfel- und Beerensaftkonzentraten zuzurechnen.

Geschäftsentwicklung

Segment Frucht 2020 21 2019 20 Veränderung
%/pp
Umsatzerlöse (brutto) t€ 1.167.600 1.186.347 -1,6%
Umsätze zwischen den Segmenten t€ -1.029 -890 -15,6%
Umsatzerlösen t€ 1.166.571 1.185.457 -1,6%
EBITDA1 t€ 94.034 101.090 -7,0%
Operatives Ergebnis t€ 52.882 58.002 -8,8%
Ergebnis aus Sondereinflüssen t€ -11.723 -2.070 -466,3%
Ergebnis der Betriebstätigkeit (EBIT) t€ 41.159 55.932 -26,4%
EBIT-Marge % 3,5 4,7 -1,2 pp
Investitionen2 t€ 34.185 56.495 -39,5%
Mitarbeiter (FTEs)3 5.695 6.194 -8,1%

1 Operatives Ergebnis vor operativen Abschreibungen

2 In Sachanlagen und immaterielle Vermögenswerte, ausgenommen Geschäfts-/Firmenwerte

3 Durchschnittlich im Geschäftsjahr beschäftigte Vollzeitäquivalente (FTEs – Full-time equivalents)

Der Umsatz im Geschäftsbereich Fruchtzubereitungen sank um knapp 2 %, was v.a. auf insgesamt leicht niedrigere Absatzmengen zurückzuführen war.

AGRANA Fruit verzeichnete Umsatzsteigerungen in Europa und Nordamerika, während es in den restlichen Regionen, primär pandemiebedingt, einen Umsatzrückgang gab. Signifikant fiel die Verminderung gegenüber dem Vorjahr in Südamerika, in Russland sowie beim Dirafrost-Geschäft aus.

Eine Analyse der Absatzentwicklung nach Produktkategorien zeigte rückläufige Mengen bei den Non-Dairy-Fruchtzubereitungen1 und im Bereich Handel mit Früchten sowie bei Tiefkühlfrüchten. Im Molkerei-Bereich blieben die Mengen stabil.

Ergebnismäßig wies der Bereich Fruchtzubereitungen einen moderaten Anstieg aus. Einerseits wirkten sich Einsparungen in der Verwaltung positiv auf das Ergebnis aus. Andererseits führten eine gute Geschäftsentwicklung in Mexiko (höhere Margen im 1st Transformation-Bereich) und Nordamerika (positive Mengenentwicklung) zu einer verbesserten operativen Performance. Negativ auf das EBIT im Bereich Fruchtzubereitungen wirkte sich ein Ergebnis aus Sondereinflüssen in Höhe von -10,9 Mio. € (Vorjahr: -2,1 Mio. €) aus. Diese Einmaleffekte setzen sich aus Ausgaben in Zusammenhang mit einem Kosteneinsparungsprogramm, einer Sachanlagenabwertung in Ägypten und Rückstellungen für einen Reklamationsfall in Europa zusammen.

Der Verkauf des bereits im Geschäftsjahr 2018/19 stillgelegten argentinischen Werkes in Coronda wurde im August 2020 endgültig erfolgreich abgeschlossen. Ebenso wurde das ehemalige Dirafrost-Werk in Yube|Serbien im September 2020 verkauft.

Die Umsatzerlösentwicklung im Geschäftsbereich Fruchtsaftkonzentrate war im Geschäftsjahr 2020/21 stabil (+0,5 % gegenüber dem Vorjahr). Höhere Apfelsaftkonzentratpreise aus den Ernten 2019 und 2020 standen dabei niedrigeren Absatzmengen gegenüber. Die Umsatzerlösentwicklung im Geschäftsbereich Fruchtsaftkonzentrate war im Geschäftsjahr 2020/21 stabil (+0,5 % gegenüber dem Vorjahr). Höhere Apfelsaftkonzentratpreise aus den Ernten 2019 und 2020 standen dabei niedrigeren Absatzmengen gegenüber.

Geringere Erntemengen während der Apfelkampagne 2020 führten zu einer stark eingeschränkten Rohstoffverfügbarkeit für AUSTRIA JUICE bei hohen Preisen in den europäischen Hauptanbauländern Polen und Ungarn. Geringere Erntemengen während der Apfelkampagne 2020 führten zu einer stark eingeschränkten Rohstoffverfügbarkeit für AUSTRIA JUICE bei hohen Preisen in den europäischen Hauptanbauländern Polen und Ungarn.

Das deutlich unter dem Vorjahr liegende EBIT im Fruchtsaftkonzentratgeschäft war auf eine verschlechterte Margen- und Absatzsituation sowie eine deutlich gesunkene Kapazitätsauslastung der Werke in der Verarbeitungssaison 2020 zurückzuführen. Weiters beinhaltet es auch ein Ergebnis aus Sondereinflüssen (-0,8 Mio. €) für die anstehende Schließung eines von fünf Werken in Ungarn. Das deutlich unter dem Vorjahr liegende EBIT im Fruchtsaftkonzentratgeschäft war auf eine verschlechterte Margen- und Absatzsituation sowie eine deutlich gesunkene Kapazitätsauslastung der Werke in der Verarbeitungssaison 2020 zurückzuführen. Weiters beinhaltet es auch ein Ergebnis aus Sondereinflüssen (-0,8 Mio. €) für die anstehende Schließung eines von fünf Werken in Ungarn.

INSTANTINA Nahrungsmittel Entwicklungs- und Produktions Gesellschaft m.b.H. INSTANTINA Nahrungsmittel Entwicklungs- und Produktions Gesellschaft m.b.H. Die INSTANTINA Nahrungsmittel Entwicklungs- und Produktions Gesellschaft m.b.H. ist auf die Entwicklung und

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. Produktion von Instantprodukten spezialisiert und ist dem Segment Zucker zugeordnet.

AGRANA Research & Innovation Center GmbH AGRANA Research & Innovation Center GmbH

Bei der AGRANA Research & Innovation Center GmbH, Wien werden schwerpunktmäßig die Forschungs- und Entwicklungsaktivitäten für Zucker und Stärke der AGRANA-Gruppe gebündelt. Bei der AGRANA Research & Innovation Center GmbH, Wien werden schwerpunktmäßig die Forschungs- und Entwicklungsaktivitäten für Zucker und Stärke der AGRANA-Gruppe gebündelt.

AGRANA Group-Services GmbH AGRANA Group-Services GmbH

Die AGRANA Group-Services GmbH erfüllt im Konzern die Finanzierungsfunktion und betreibt das Cash-Pooling. Sie ist, wie die Holding, dem Segment Zucker zugeordnet. Die AGRANA Group-Services GmbH erfüllt im Konzern die Finanzierungsfunktion und betreibt das Cash-Pooling. Sie ist, wie die Holding, dem Segment Zucker zugeordnet.

UMWELT UND NACHHALTIGKEIT

AGRANAs Nachhaltigkeitsverständnis

AGRANA, als industrieller Veredler agrarischer Rohstoffe, versteht im Rahmen ihrer Geschäftstätigkeit unter Nachhaltigkeit die Balance zwischen Ökonomie, Ökologie und Sozialem. Dieses Verständnis von Nachhaltigkeit ist im Rahmen von drei Leitsätzen, die dem Management und allen Mitarbeitern als praktische und leicht verständliche Anleitung zu täglich nachhaltigem Handeln dienen, zusammengefasst.

Wir bei AGRANA…

  • § verwerten annähernd 100 % der eingesetzten Rohstoffe und nutzen emissionsarme Technologien, um Auswirkungen auf die Umwelt zu minimieren,
  • § achten alle unsere Stakeholder und die Gesellschaften, in denen wir tätig sind,
  • § leben langfristige Partnerschaften mit Lieferanten und Kunden.

AGRANA entwickelte ihr Nachhaltigkeitsverständnis auf Basis der regelmäßigen Interaktion mit ihren Stakeholder-Gruppen.

AGRANA Nachhaltigkeitsaktivitäten im Geschäftsjahr 2020/21 und Ziele

Auf Basis ihrer Geschäftstätigkeit hat AGRANA fünf Handlungsfelder der Nachhaltigkeit entlang ihrer Produktwertschöpfungskette identifiziert:

  • Rohstoffbeschaffung Umwelt- und Sozialkriterien (d.h. Arbeitspraktiken und Menschenrechte) in der Beschaffung agrarischer Rohstoffe und Vorprodukte
  • Ökoeffizienz unserer Produktion Umwelt- und Energieaspekte in der AGRANA-Produktion
  • Unsere Mitarbeiter Arbeitsbedingungen und Menschenrechte in Bezug auf AGRANA-Mitarbeiter
  • Produktverantwortung Produktverantwortung und nachhaltige Produkte
  • Compliance Gesetzes- und Regelkonformität sowie Geschäftsgebarung

Die SAI-Plattform 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.

Das Basisinstrument stellt dabei immer das von der SAI-Plattform erstellte Farm Sustainability Assessment (FSA) dar. Dieses wird mithilfe eines Fragebogens, welcher aus 112 Fragen zu allen für die Nachhaltigkeit relevanten Themenschwerpunkten wie Betriebsführung, Arbeitsbedingungen (inklusive Fragen zu Kinder- und Zwangsarbeit), Boden- und Nährstoffmanagement oder Pflanzenschutz besteht, durchgeführt. Je nach Erfüllung der unterschiedlichen Kriterien erhält der Anbaubetrieb eine Nachhaltigkeitsbewertung mit dem Status Gold, Silber oder Bronze. AGRANA hat sich zum Ziel gesetzt, dass jene Kontraktlandwirte, welche die FSA-Systematik anwenden, zumindest FSA-Silber Status erreichen.

Im Geschäftsjahr 2020/21 leisteten AGRANA-Experten im Bereich landwirtschaftliche Produktion einen wertvollen fachlichen Beitrag zur Weiterentwicklung der Vorgaben und zur Vorbereitung der Version 3.0 des Farm Sustainability Assessment, die im April 2021 veröffentlicht wird und spätestens nach einer Übergangszeit von 18 Monaten nach Publikation umzusetzen ist.

Basis und Unterstützung im Monitoring für die Dekarbonisierung bilden die Energiemanagementsysteme der AGRANA-Produktionsstandorte. Die Energiemanagementsysteme von 37 % (Vorjahr: 47,3 %) aller AGRANA-Produktionsstandorte in den GRI-Berichtsgrenzen waren im Berichtsjahr nach ISO 50001 zertifiziert.

Externe Zertifizierungen im Lebensmittel- und Futtermittelbereich Externe Zertifizierungen im Lebensmittel- und Futtermittelbereich Die Prinzipien der internationalen Norm für Qualitätsmanagementsysteme ISO 9001 bilden die Basis des AGRANA-

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+- und der EFISC Feed-Standard. Insgesamt verfügten im Geschäftsjahr 2020|21 100 % der Produktionsstandorte über mindestens eine dieser bzw. der jeweils lokal relevanten internationalen Zertifizierungen. 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+- und der EFISC Feed-Standard. Insgesamt verfügten im Geschäftsjahr 2020|21 100 % der Produktionsstandorte über mindestens eine dieser bzw. der jeweils lokal relevanten internationalen Zertifizierungen.

Die AGRANA Beteiligungs-Aktiengesellschaft ist seit 2009 Mitglied bei der Supplier Ethical Data Exchange (SEDEX). Alle AGRANA-Produktionsstandorte nehmen jährlich ein SEDEX Self-Assessment, welches v.a. auf Arbeitsbedingungen, sicherheit und Menschenrechte (inklusive Fragen zu Kinder- und Zwangsarbeit) abzielt, vor. Die AGRANA Beteiligungs-Aktiengesellschaft ist seit 2009 Mitglied bei der Supplier Ethical Data Exchange (SEDEX). Alle AGRANA-Produktionsstandorte nehmen jährlich ein SEDEX Self-Assessment, welches v.a. auf Arbeitsbedingungen, sicherheit und Menschenrechte (inklusive Fragen zu Kinder- und Zwangsarbeit) abzielt, vor.

Seit 2010 ist die AGRANA Beteiligungs-Aktiengesellschaft Mitglied des Vereins ARGE Gentechnik-frei, welcher das Ziel hat, verlässliche Rahmenbedingungen für Produktion, Kennzeichnung und Kontrolle von Gentechnik-freien Lebensmitteln zu schaffen. Seit 2010 ist die AGRANA Beteiligungs-Aktiengesellschaft Mitglied des Vereins ARGE Gentechnik-frei, welcher das Ziel hat, verlässliche Rahmenbedingungen für Produktion, Kennzeichnung und Kontrolle von Gentechnik-freien Lebensmitteln zu schaffen.

FORSCHUNG UND ENTWICKLUNG FORSCHUNG UND ENTWICKLUNG

In einem hochkompetitiven Marktumfeld ist es für AGRANA von zentraler Bedeutung, Markttrends frühzeitig 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 die auf langfristigen Erfolg ausgelegte Konzernstrategie. In einem hochkompetitiven Marktumfeld ist es für AGRANA von zentraler Bedeutung, Markttrends frühzeitig 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 die auf langfristigen Erfolg ausgelegte Konzernstrategie.

Das AGRANA Research & Innovation Center (ARIC) in Tulln|Österreich ist neben 17 lokalen NPD1 -Centern der zentrale Forschungs- und Entwicklungs-Hub des Konzerns für die Bereiche Frucht, Stärke und Zucker. Das ARIC ist als eigenständiges Unternehmen in der AGRANA-Gruppe organisiert und eine 100%-Tochter der AGRANA Beteiligungs-Aktiengesellschaft, 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, Landwirtschaft, Lebensmitteltechnologie, Stärketechnologie, Mikrobiologie, Biotechnologie und Fruchtzubereitungsentwicklung tätig. Das AGRANA Research & Innovation Center (ARIC) in Tulln|Österreich ist neben 17 lokalen NPD1 -Centern der zentrale Forschungs- und Entwicklungs-Hub des Konzerns für die Bereiche Frucht, Stärke und Zucker. Das ARIC ist als eigenständiges Unternehmen in der AGRANA-Gruppe organisiert und eine 100%-Tochter der AGRANA Beteiligungs-Aktiengesellschaft, 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, Landwirtschaft, Lebensmitteltechnologie, Stärketechnologie, Mikrobiologie, Biotechnologie und Fruchtzubereitungsentwicklung tätig.

Die Zusammenarbeit von F&E-Spezialisten aus unterschiedlichen Bereichen (Frucht, Stärke und Zucker) unter einem Dach ermöglicht nicht nur verwaltungstechnische Synergieeffekte, sondern fördert v.a. den Austausch unterschiedlicher Forschergruppen und Disziplinen, insbesondere zu bereichsübergreifenden Themen. Durch die sich ergänzenden Erfahrungen ergeben sich Vorteile bei segmentübergreifenden Forschungsschwerpunkten, z.B. bei Technologien, Verdickungs- und Süßungslösungen sowie Aromen, Mikrobiologie, Produktqualität und -sicherheit sowie Bio-Produkten. Die Zusammenarbeit von F&E-Spezialisten aus unterschiedlichen Bereichen (Frucht, Stärke und Zucker) unter einem Dach ermöglicht nicht nur verwaltungstechnische Synergieeffekte, sondern fördert v.a. den Austausch unterschiedlicher Forschergruppen und Disziplinen, insbesondere zu bereichsübergreifenden Themen. Durch die sich ergänzenden Erfahrungen ergeben sich Vorteile bei segmentübergreifenden Forschungsschwerpunkten, z.B. bei Technologien, Verdickungs- und Süßungslösungen sowie Aromen, Mikrobiologie, Produktqualität und -sicherheit sowie Bio-Produkten.

F&E-Kennzahlen 2020 21 2019 20
F&E-Kennzahlen Mio. € 2020 21 2019 20
F&E-Aufwendungen (Intern und extern) 18,4 18,9
F&E-Aufwendungen (Intern und extern) Mio. € 18,4 18,9
F&E-Quote* % 0,72 0,76
F&E-Quote* % 0,72 0,76
Mitarbeiter in F&E (Köpfe) 270 266
Mitarbeiter in F&E (Köpfe) 270 266

* ) F&E-Aufwendungen gemessen am Konzernumsatz ) F&E-Aufwendungen gemessen am Konzernumsatz

PERSONAL-UND SOZIALBERICHT

Die gesamte AGRANA-Gruppe beschäftigte im Geschäftsjahr 2020/21 durchschnittlich 8.920 Mitarbeiter (Köpfe) (Vorjahr: 9.300 Mitarbeiter), davon 2.519 (Vorjahr: 2.456) in Österreich und 6.401 (Vorjahr: 6.844) international.

Im Geschäftsjahr 2020/21 waren in der AGRANA-Gruppe durchschnittlich 8.847 FTEs (Vorjahr: 9.342 FTEs) beschäftigt. Die Reduktion im Segment Frucht ist hauptsächlich mit einem geringeren Bedarf an temporären Mitarbeitern aufgrund von niedrigeren Erntevolumina bzw. teilweise mit Verschiebungen der saisonalen Produktion, COVID-19 bedingten Vorschriften zu physischer Distanz sowie Effizienzsteigerungen durch höhere Automatisierung zu begründen. Im Segment Stärke ist der Personalanstieg vor allem auf die Inbetriebnahme der Weizenstärkeanlage (WSA II) in Pischelsdorf sowie die Akquisition der Gesellschaft Marroquin Organic International Inc. zurückzuführen. Im Segment Zucker resultiert der Rückgang vor allem aus Einsparungen.

Im Geschäftsjahr 2020/21 wurden die Funktionalitäten des globalen Personalmanagementsystems weiter ausgebaut, was dazu führt, dass nun der Großteil der Module erfolgreich implementiert wurde. Das Personalmanagementsystem soll die Effizienz der Personalprozesse verbessern, die Qualitätssicherheit unterstützen, Transparenz schaffen sowie die Datensicherheit erhöhen. In den nächsten Jahren liegt der Fokus darauf, die Funktionalitäten dieses Systems sukzessive weiterzuentwickeln und an die sich laufend ändernden Anforderungen anzupassen.

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. Im Geschäftsjahr 2020/21 unterliegen 10,8 % (Vorjahr: 8,8 %) aller Beschäftigten diesem erfolgsorientierten Entlohnungssystem.

Die Schwerpunkte im Aus- und Weiterbildungsbereich lagen im Geschäftsjahr 2020/21 in der Entwicklung von Nachwuchsführungskräften und Fachexperten einzelner ausgewählter Funktionsbereiche sowie dem Ausbau des digitalen Weiterbildungsangebotes.

AGRANA hat im Geschäftsjahr 2020/21 durchschnittlich 101 Lehrlinge (davon weiblich: 23 bzw. 22,7 %) ausgebildet. Die Ausbildung erfolgte u.a. in den Bereichen Elektrotechnik, Metalltechnik, Labortechnik (Chemie), Chemieverfahrenstechnik, Lebensmitteltechnik, Mechatronik, Industrielehre sowie Marktkommunikation und Werbung.

Im Geschäftsjahr 2020/21 haben 14 Mitarbeiter und Führungskräfte (davon weiblich: vier bzw. 28,6 %) aus dem Konzern am "Advance@AGRANA - das Operations Nachwuchsführungskräfteprogramm" teilgenommen und dieses im Februar 2021 erfolgreich abgeschlossen.

AGRANA bietet weiters laufend konzernweite On-Boarding-Programme und Welcome Days an, um neuen Mitarbeitern einen Überblick über die gesamte AGRANA-Gruppe und auch über den eigenen Arbeitsbereich zu geben.

Die konzernweiten externen Aus- und Weiterbildungskosten beliefen sich im Geschäftsjahr 2020/21 auf rund 1,6 Mio. € (Vorjahr: 3,0 Mio. €), was 0,6 % (Vorjahr: 1,1 %) der Lohn- und Gehaltssumme entsprach.

Arbeitssicherheit und Gesundheit

Das Arbeitssicherheitsmanagement von AGRANA ist organisatorisch bei den für Produktion verantwortlichen Geschäftsführern der AGRANA-Segmente bzw. Geschäftsbereiche, den Werksleitern der AGRANA-Produktionsstandorte sowie den Arbeitssicherheitsbeauftragten der Standorte angesiedelt. Die Arbeitssicherheitsbeauftragten bzw. Sicherheitsfachkräfte tragen die Verantwortung für die Einhaltung aller gesetzlich vorgeschriebenen bzw. vom Unternehmen veranlassten Arbeitssicherheitsmaßnahmen. Dies sind z.B. die regelmäßige und anlassbezogene Gefahrenidentifikation und Risikobewertung, die Ableitung von Verbesserungsmaßnahmen, die Organisation von Arbeitssicherheitsschulungen sowie die Analyse, Dokumentation (gemeinsam mit Human Resources) und Kommunikation von tatsächlichen Arbeitsunfällen.

In allen 24 Ländern, in denen AGRANA über Produktionsstandorte verfügt, besteht eine - wenn auch unterschiedlich ausgestaltete - gesetzliche Verpflichtung der Arbeitsplatzevaluierung durch den Arbeitgeber. Diese wird durch die Sicherheitsfachkräfte, teilweise in Zusammenarbeit mit externen Beratern durchgeführt und ist arbeitsplatzbezogen, für die Mitarbeiter zugänglich zu dokumentieren. Sie ist in regelmäßigen Abständen zu überprüfen bzw. anlassbezogen bei Anlagen- oder Verfahrensänderungen oder nach Unfällen zu überarbeiten. Mitarbeiter sind verpflichtet, festgestellte Gefahrenquellen z.B. über die Dokumentation im Schichtbuch, im betrieblichen Vorschlagswesen oder im Rahmen von periodischen Sicherheitsrundgängen zu melden. Im global tätigen Geschäftsbereich Fruchtzubereitungen ist diese Meldeverpflichtung aus kulturellen Gründen an manchen Standorten auch anonym möglich.

Vereinbarkeit von Beruf und Familie

Die Vereinbarkeit von Beruf und Familie ist für AGRANA im Rahmen ihres sozialen Bewusstseins ein wichtiger Bestandteil der Personalstrategie. Aus diesem Grund ist AGRANA bereits im Frühjahr 2016 dem vom Bundesministerium für Familien und Jugend initiierten österreichischen Netzwerk "Unternehmen für Familien" beigetreten.

Dies spiegelt sich konzernweit in zahlreichen Initiativen und Angeboten für die Mitarbeiter wider. Dazu gehören Telearbeit, Förderung bzw. auch das Angebot von Kinderbetreuung an einzelnen Standorten, variable Arbeitszeit und auch ein Eltern-Kind-Büro am Standort in Wien.

RISIKOMANAGEMENT UND INTERNES KONTROLLSYSTEM

Der Vorstand der AGRANA-Gruppe ist sich der Bedeutung eines aktiven und funktionsfähigen 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 könnten. 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.

Risikopolitik

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, eine 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-Aktiengesellschaft 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 außerhalb der Kerngeschäftstätigkeit der AGRANA-Gruppe, erlaubt. Über den Bestand und die Werthaltigkeit von Hedge-Kontrakten wird regelmäßig an den Vorstand berichtet.

Wesentliche Risiken und Ungewissheiten

Die Unternehmensgruppe ist Risiken ausgesetzt, die sich sowohl aus dem operativen Geschäft als auch von nationalen und internationalen Rahmenbedingungen ableiten.

Operative Risiken

Beschaffungsrisiken

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.

Produktqualität und -sicherheit

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.

Markt- und Wettbewerbsrisiken

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.

IT-Risiken

AGRANA ist auf die Funktionstüchtigkeit einer komplexen IT-Technologie angewiesen. Die Nichtverfügbarkeit, Datenverlust oder -manipulation und die Verletzung der Vertraulichkeit bei kritischen IT-Systemen können beträchtliche Auswirkungen auf betriebliche Teilbereiche haben. Die allgemeine Entwicklung in Bezug auf externe Angriffe auf IT-Systeme verdeutlicht das Risiko, dass die AGRANA-Gruppe in Zukunft auch zunehmend solchen Risiken ausgesetzt ist/sein kann. Die Aufrechterhaltung der IT-Sicherheit wird durch qualifizierte interne und externe Experten sowie durch entsprechende organisatorische und technische Maßnahmen gewährleistet. Dazu zählen redundant ausgelegte IT-Systeme und Security Tools, die dem neuesten Stand der Technik entsprechen. Zusammen mit externen Partnern wurden Vorkehrungen getroffen, um möglichen Bedrohungen zu begegnen und potenziellen Schaden abzuwenden.

Regulatorische Risiken

Marktordnungsrisiken für Zucker

Im Rahmen des Risikomanagements werden bereits im Vorfeld mögliche Szenarien und ihre Auswirkungen analysiert und bewertet.

Zuckermarktordnung: Seit dem 1. Oktober 2017 gelten für die europäische Zuckerindustrie neue Rahmenbedingungen. Teil dieser neuen Rahmenbedingung ist die Verbesserung der Markttransparenz in der Agrar- und Lebensmittelversorgungskette. Die EU-Kommission hat mit den Durchführungsverordnungen (EU) 2017/1185 und (EU) 2019/1746 neue Regulierungsmaßnahmen in Form von verschiedenen Meldepflichten beschlossen.

Damit soll die Transparenz in der Landwirtschaft und im Lebensmittelsektor verbessert werden, um die Wirtschaftsbeteiligten und die Behörden zu befähigen, fundierte Entscheidungen zu treffen und das Verständnis der Marktteilnehmer für Marktentwicklungen zu verbessern.

Dadurch entsteht erstmals die Notwendigkeit, Preise auf Stufen der Wertschöpfungskette, die zwischen den Erzeugern der Rohstoffe und den Endverbrauchern liegen, zu erheben. Dies betrifft sowohl den Lebensmitteleinzelhandel als auch die Lebensmittelverarbeitungsbetriebe.

Freihandelsabkommen: Zukünftige Freihandelsabkommen der EU könnten wirtschaftliche Auswirkungen auf AGRANA haben. AGRANA verfolgt die laufenden Verhandlungen und analysiert und bewertet die einzelnen Ergebnisse.

Die EU und die Mercosur-Staaten (Argentinien, Brasilien, Paraguay und Uruguay) haben im Juni 2019 eine politische Einigung über ein umfassendes Handelsabkommen erzielt. Der Antrag geht nun in jedem Mitgliedsland in einen schwierigen Ratifizierungsprozess.

Die EU-Kommission verhandelt derzeit mit Australien und Neuseeland über die Ausgestaltung eines Freihandelsabkommens.

Des Weiteren können nationale Steuer- und Zollvorschriften sowie deren Auslegung durch die lokalen Behörden zu weiteren Risiken im regulatorischen Umfeld führen.

Brexit: Die direkten Geschäftsbeziehungen von AGRANA mit Kunden und Lieferanten aus Großbritannien sind nicht von wesentlicher Bedeutung. Es ist daher für die Gruppe von keinen signifikanten Auswirkungen aus dem britischen Beschaffungs- und Absatzmarkt auszugehen. Es kann jedoch nicht ausgeschlossen werden, dass es durch den Wegfall von Importbeschränkungen für Zucker in Großbritannien auf dem europäischen Kontinent zu Marktverwerfungen und einem erhöhten Preisdruck kommen kann.

EU-Richtlinie für erneuerbare Energien

Am 21. Dezember 2018 wurde die Erneuerbare-Energie-Richtlinie der EU (RED II) verabschiedet. Aktuell wird an der nationalen Umsetzung dieser Richtlinie gearbeitet, welche bis zum 30. Juni 2021 in Kraft treten soll.

Diese Richtlinie sieht eine Untergrenze von 14 % erneuerbare Energie im Transportbereich bis zum Jahr 2030 vor. Der Anteil der getreidebasierten Biotreibstoffe wurde mit dem nationalen Beitrag im Jahr 2020, maximal jedoch 7 %, begrenzt. Weiters wurde ein Unterziel für sogenannte fortschrittliche Biokraftstoffe ("2. Generation") in Höhe von mindestens 3,5 % bis zum Jahr 2030 festgelegt. Die Rohstoffliste für die fortschrittlichen Biokraftstoffe wird in Anhang IX der Richtlinie festgelegt und kann durch die EU-Kommission ergänzt werden.

In Österreich beträgt das Substitutionsziel von Biotreibstoffen gemäß derzeit gültiger Kraftstoffverordnung 5,75 % (basierend auf RED I) und davon 3,4 % aus Bioethanol (jeweils bezogen auf den Energiegehalt). Die Einführung von E10 würde den Biotreibstoffanteil unmittelbar mit den vorhandenen Produktionskapazitäten auf das 7%-Ziel anheben. Auf nationaler Ebene würde damit nicht nur der RED II-Richtlinie entsprochen, sondern auch die nachweisbare Verringerung von Partikel-Emissionen könnte erreicht werden.

Rechtliche Risiken

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-, Lebensmittelund Umweltrecht, neben Datenschutz, Geldwäschebestimmungen und Terrorismusfinanzierung. AGRANA hat für den Bereich Compliance, Personalrecht und allgemeine Rechtsbereiche eigene Stabsstellen eingerichtet und bildet die betroffenen Mitarbeiter regelmäßig fort.

Wie in den Vorjahresberichten dargestellt, beantragte die österreichische Bundeswettbewerbsbehörde (BWB) 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 (Südzucker), Mannheim| Deutschland. Das Oberlandesgericht Wien hat am 19. Mai 2019 den Bußgeldantrag der BWB abgewiesen; dagegen hat die BWB Revision an den Obersten Gerichtshof erhoben. Die BWB begründet dies vor allem damit, dass das Bundeskartellamt in seiner Entscheidung nur den Unwertgehalt des Verhaltens von Südzucker in Bezug auf Deutschland berücksichtigt habe, und dass die Verhängung einer "Zusatzstrafe" in Bezug auf Österreich sowohl zulässig als auch geboten sei. Mit Beschluss vom 27. März 2020 hat der OGH das Rekursverfahren unterbrochen und den EuGH um eine Vorabentscheidung zur Reichweite des Grundsatzes "ne bis in idem" bei EU-Wettbewerbsverfahren gebeten. Dieses Zwischenverfahren ist noch anhängig. Mit der Entscheidung des EuGH ist im ersten Kalenderquartal 2022 zu rechnen. AGRANA hält die Beschuldigung sowie das beantragte Bußgeld weiterhin für unbegründet.

Weiters ist die AGRANA Stärke GmbH in einem Verfahren vor dem Handelsgericht Wien beklagte Partei. Die klagende Partei behauptet, einen Schaden aus einer Nichtlieferung von zugesagten Produktmengen erlitten zu haben. Das Verfahren befindet sich in der ersten Instanz, im Stadium der gerichtlichen Beweisaufnahme. Mit einem erstinstanzlichen Urteil ist möglicherweise im Geschäftsjahr 2021/22 zu rechnen. AGRANA hält die Ansprüche der klagenden Partei mangels wirksamer Vereinbarung der Abnahmemengen für unbegründet.

Darüber hinaus bestehen keine gerichtsanhängigen oder angedrohten zivilrechtlichen Klagen gegen Unternehmen der AGRANA-Gruppe, die eine materielle Auswirkung auf die Ertrags-, Finanz- und Vermögenslage haben könnten.

Finanzielle Risiken

AGRANA ist Risiken aus der Veränderung von Wechselkursen, Zinssätzen und Produktpreisen ausgesetzt. Darüber hinaus bestehen Risiken, die für den Konzern notwendigen Refinanzierungen zur Verfügung gestellt zu bekommen. Die Finanzierungssteuerung der Unternehmensgruppe erfolgt zentral durch die Treasury-Abteilung, die dem Vorstand laufend über die Entwicklung und Struktur der zur Verfügung stehenden Kreditrahmen, die Nettofinanzschulden des Konzerns, die finanziellen Risiken und über 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 durch lokale Behörden können einen Einfluss auf den finanziellen Erfolg einzelner Konzerngesellschaften und in weiterer Folge auch auf den Konzern haben.

Zinsänderungsrisiken

Zinsänderungsrisiken ergeben sich durch Wertschwankungen von fix verzinsten Finanzinstrumenten infolge einer Änderung des Marktzinssatzes (zinsbedingtes Kursrisiko). Variabel verzinsliche Anlagen oder Kreditaufnahmen unterliegen dagegen grundsätzlich keinem Wertrisiko, da der Zinssatz zeitnah der Marktzinslage angepasst wird. Aufgrund des seit einigen Jahren, insbesondere im EURO-Raum, bestehenden negativen Zinsumfeldes im Geldmarktbereich kommt es auch bei variabel verzinsten Finanzanlagen und Finanzierungen für die AGRANA-Gruppe zu nachteiligen Auswirkungen. Bei Bankguthaben besteht das Risiko von weiterverrechneten Negativzinsen, wohingegen bei einigen Finanzierungen der negative Zinssatz nicht an AGRANA weitergegeben wird.

Durch die Schwankung des Marktzinsniveaus ergibt sich außerdem 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

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 Złoty, rumänischem Leu, ukrainischer Griwna, russischem Rubel, brasilianischem Real, mexikanischem Peso, argentinischem 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. 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. Das Währungsrisiko wird durch den "Value at Risk"-Ansatz ermittelt und im Konzernanhang dargestellt.

Liquiditätsrisiken Liquiditätsrisiken

Das Bestreben der AGRANA-Gruppe ist darauf ausgerichtet, über ausreichend liquide Mittel zu verfügen, um jederzeit den fälligen Zahlungsverpflichtungen nachzukommen. Liquiditätsrisiken auf Einzelgesellschafts- oder Länderebene werden durch das einheitliche Berichtswesen frühzeitig erkannt, wodurch Gegenmaßnahmen rechtzeitig eingeleitet werden können. Die Liquidität der AGRANA-Gruppe ist durch bilaterale und syndizierte Kreditlinien langfristig und ausreichend abgesichert. Das Bestreben der AGRANA-Gruppe ist darauf ausgerichtet, über ausreichend liquide Mittel zu verfügen, um jederzeit den fälligen Zahlungsverpflichtungen nachzukommen. Liquiditätsrisiken auf Einzelgesellschafts- oder Länderebene werden durch das einheitliche Berichtswesen frühzeitig erkannt, wodurch Gegenmaßnahmen rechtzeitig eingeleitet werden können. Die Liquidität der AGRANA-Gruppe ist durch bilaterale und syndizierte Kreditlinien langfristig und ausreichend abgesichert.

Kontrahenten- und Bankenrisiken Kontrahenten- und Bankenrisiken

Aufgrund der internationalen Aufstellung der AGRANA-Gruppe bestehen Bankguthaben und Finanzanlagen, global verteilt, bei verschiedenen Bankpartnern. Das hierbei bestehende Risiko von Zahlungsausfällen wird in der AGRANA-Gruppe genau und regelmäßig überwacht. Im Rahmen der internen Richtlinien dürfen nur Geschäftsbeziehungen zu erstklassigen Banken mit einem definierten Mindestrating eingegangen werden. In Fällen, in denen das Mindestrating nicht erfüllt werden kann, sind Obergrenzen für Guthaben vorgegeben und strikt einzuhalten. Aufgrund der internationalen Aufstellung der AGRANA-Gruppe bestehen Bankguthaben und Finanzanlagen, global verteilt, bei verschiedenen Bankpartnern. Das hierbei bestehende Risiko von Zahlungsausfällen wird in der AGRANA-Gruppe genau und regelmäßig überwacht. Im Rahmen der internen Richtlinien dürfen nur Geschäftsbeziehungen zu erstklassigen Banken mit einem definierten Mindestrating eingegangen werden. In Fällen, in denen das Mindestrating nicht erfüllt werden kann, sind Obergrenzen für Guthaben vorgegeben und strikt einzuhalten.

Risiken aus Forderungsausfällen Risiken aus Forderungsausfällen

Risiken aus Forderungsausfällen werden durch die bestehenden Warenkreditversicherungen, durch strikte Kreditlimits und laufende Überprüfungen der Kundenbonität minimiert. Das verbleibende Risiko wird durch Vorsorgen in angemessener Höhe abgedeckt. 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.

Nicht-finanzielle Risiken Nicht-finanzielle Risiken

Als energieintensiver industrieller Veredler, v.a. in den Segmenten Stärke und Zucker, unterliegt AGRANA mit dem Großteil ihrer Produktionsstandorte dieser Segmente dem EU-Emissionshandelssystem (ETS1 ). Daher beschäftigt sich das Unternehmen seit jeher auch intensiv mit potenziellen regulatorischen (transitorischen) Risiken im Bereich der Energiegesetzgebung. Politische Lenkungsmaßnahmen im Kampf gegen den Klimawandel werden durch das Pariser Klimaabkommen 2015 und dem darauf basierenden EU Green Deal in den nächsten Jahren vermehrte regulatorische Risiken im Rahmen der Transformation zu einer emissionsarmen Gesellschaft für AGRANA begründen. Als energieintensiver industrieller Veredler, v.a. in den Segmenten Stärke und Zucker, unterliegt AGRANA mit dem Großteil ihrer Produktionsstandorte dieser Segmente dem EU-Emissionshandelssystem (ETS1 ). Daher beschäftigt sich das Unternehmen seit jeher auch intensiv mit potenziellen regulatorischen (transitorischen) Risiken im Bereich der Energiegesetzgebung. Politische Lenkungsmaßnahmen im Kampf gegen den Klimawandel werden durch das Pariser Klimaabkommen 2015 und dem darauf basierenden EU Green Deal in den nächsten Jahren vermehrte regulatorische Risiken im Rahmen der Transformation zu einer emissionsarmen Gesellschaft für AGRANA begründen.

Coronavirus (COVID-19) Coronavirus (COVID-19)

Die globale Verbreitung des Coronavirus hat in vielen Ländern der Welt zu massiven Einschränkungen des öffentlichen, gesellschaftlichen und wirtschaftlichen Lebens geführt. AGRANA ist mit Produktions- und Vertriebsstandorten auf allen Kontinenten vertreten und daher in unterschiedlichen Regionen innerhalb und außerhalb Europas betroffen. Die globale Verbreitung des Coronavirus hat in vielen Ländern der Welt zu massiven Einschränkungen des öffentlichen, gesellschaftlichen und wirtschaftlichen Lebens geführt. AGRANA ist mit Produktions- und Vertriebsstandorten auf allen Kontinenten vertreten und daher in unterschiedlichen Regionen innerhalb und außerhalb Europas betroffen.

Nach Ausrufung der Pandemie-Erklärung der WHO wurde zur Sicherheit der Mitarbeiter sowie für die Aufrechterhaltung der Produktion eine konzernweite Pandemie-Richtlinie erlassen. Dies bedeutet im Wesentlichen, dass Krisenteams aktiviert, jeweils lokale Business Continuity-Pläne implementiert, verstärkte Kommunikationsmaßnahmen sowie erhöhte Hygienemaßnahmen ergriffen wurden und ein hohes Augenmerk auf die Einhaltung der behördlichen Empfehlungen und Anordnungen gelegt wird. Des Weiteren bestehen restriktive Maßnahmen in Bezug auf Dienstreisen und temporäre Heimarbeit wurde ermöglicht. Nach Ausrufung der Pandemie-Erklärung der WHO wurde zur Sicherheit der Mitarbeiter sowie für die Aufrechterhaltung der Produktion eine konzernweite Pandemie-Richtlinie erlassen. Dies bedeutet im Wesentlichen, dass Krisenteams aktiviert, jeweils lokale Business Continuity-Pläne implementiert, verstärkte Kommunikationsmaßnahmen sowie erhöhte Hygienemaßnahmen ergriffen wurden und ein hohes Augenmerk auf die Einhaltung der behördlichen Empfehlungen und Anordnungen gelegt wird. Des Weiteren bestehen restriktive Maßnahmen in Bezug auf Dienstreisen und temporäre Heimarbeit wurde ermöglicht.

Die gesetzten Maßnahmen haben in der Gruppe ihre positive Wirkung gezeigt und es ist gelungen, an weltweit 56 Produktionsstandorten den vollen Produktionsbetrieb aufrecht zu erhalten. Darüber hinaus konnte das Funktionieren der Transportketten gesichert werden, sodass es zu keinen nennenswerten Verzögerungen in der Belieferung der Kunden kam. Die gesetzten Maßnahmen haben in der Gruppe ihre positive Wirkung gezeigt und es ist gelungen, an weltweit 56 Produktionsstandorten den vollen Produktionsbetrieb aufrecht zu erhalten. Darüber hinaus konnte das Funktionieren der Transportketten gesichert werden, sodass es zu keinen nennenswerten Verzögerungen in der Belieferung der Kunden kam.

AGRANA gehört als Teil der kritischen Infrastruktur und Nahrungsmittelproduzent zu den weniger wirtschaftlich betroffenen Branchen. Dennoch wird COVID-19 v.a. in der unmittelbaren Zukunft einen nachhaltigen Einfluss auf die konjunkturelle Entwicklung der Weltwirtschaft haben. Es ist möglich, dass das gewohnte Wachstum auf Vorkrisenniveau erst wieder nach einigen Jahren erreicht werden kann. Ein wesentlicher Beschleuniger in der Überwindung der Pandemie liegt in einer möglichst hohen globalen Durchimpfungsrate. Bis dahin kann es zu Beeinträchtigungen in der Beschaffung, Produktion und auf den Absatzmärkten kommen.

Auf den Finanz- und Kapitalmärkten sowie im Interbankenhandel ist es nach Ausbruch der Pandemie temporär zu massiven Verwerfungen gekommen. Ebenso ist die weitere ökonomische Entwicklung nach wie vor von gesamtwirtschaftlicher Unsicherheit, auch beeinflusst durch Lock-Down-Phasen, geprägt. Trotz staatlicher Unterstützungsmaßnahmen ist auch mit einer steigenden Insolvenzquote zu rechnen. Schon im Geschäftsjahr 2020|21 war eine Reduzierung der Versicherungsdeckung aus Warenkreditversicherungen, in Einzelfällen auch eine gesamte Aufhebung des Deckungsumfangs bzw. eine erschwerte Erstversicherung von Neukunden, zu beobachten. Diese Entwicklungen führten zu einem engmaschigeren Monitoring der Kundenforderungen und Zahlungsziele sowie alternativen Risikoevaluierungsmaßnahmen und -sicherstellungen. Aufgrund der getroffenen Maßnahmen sind derzeit keine zusätzlichen nennenswerten Forderungsausfälle zu beobachten.

AGRANA steht in engem Austausch mit ihren Hausbanken und überprüft laufend die Verfügbarkeit der vorhandenen Kreditrahmen. Aus diesem Grund stand Ende des Kalenderjahres 2020 die erfolgreiche Verlängerung einer syndizierten Kreditlinie im Mittelpunkt der Aktivitäten der Konzern-Treasuryabteilung. Ebenso wird die Liquidität auf den weltweit unterhaltenen Bankkonten und das Rating der Bankpartner laufend kritisch überprüft und bei Bedarf werden notwendige Umschichtungen vorgenommen.

Gesamtrisiko

Die derzeitige Gesamtrisikoposition des Konzerns ist durch hohe Volatilitäten von Verkaufs- und Rohstoffpreisen gekennzeichnet. Im Segment Zucker ist der Einfluss der Weltmarktpreise auf das europäische Preisniveau von gestiegener Bedeutung. Im Bereich Bioethanol ist der wirtschaftliche Erfolg wesentlich durch die zukünftige Entwicklung der Absatzpreise bestimmt. Da sich die Preise für die verwendeten Rohstoffe Mais und Weizen unabhängig von den Ethanolpreisen entwickeln können, wird die Einschätzung der Ergebnisentwicklung bei Bioethanol zusätzlich erschwert.

Aufgrund der sich nur langsam nach oben bewegenden EU-Verkaufspreise für Zucker und Isoglukose, der volatilen Preisentwicklung bei Bioethanol und der schwankenden Kosten durch die hohe Rohstoffpreisvolatilität sowie aufgrund der nach wie vor gegebenen Unsicherheiten in Bezug auf Ausmaß und Dauer aus der Coronavirus-Krise liegt die Gesamtrisikoposition des Konzerns deutlich über dem Durchschnitt der Vorjahre. Sie ist jedoch durch eine hohe bilanzielle Eigenkapitalausstattung gedeckt und die AGRANA-Gruppe kann durch die Diversifikation in drei Geschäftsbereiche risikoausgleichend agieren.

Es bestehen nach wie vor keine bestandsgefährdenden Risiken für die AGRANA-Gruppe bzw. sind solche auch gegenwärtig nicht erkennbar.

BERICHTERSTATTUNG GEMÄß § 243A ABS. 2 UGB

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 ERP1 -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 und für 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 bis viermal 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, Gewinnund 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.

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.

KAPITAL-, ANTEILS-, STIMM-UND KONTROLLRECHTE

(Angaben gemäß § 243a Abs. 1 UGB)

Das Grundkapital der AGRANA Beteiligungs-Aktiengesellschaft zum Stichtag 28. Februar 2021 betrug 113,5 Mio. € (29. Februar 2020: 113,5 Mio. €) und war in 62.488.976 (29. Februar 2020: 62.488.976) auf Inhaber lautende Stückaktien (Stammaktien mit Stimmrecht) geteilt. Weitere Aktiengattungen bestehen nicht.

Die AGRANA Zucker, Stärke und Frucht Holding AG (AZSF) mit Sitz in Wien hält als Mehrheitsaktionär direkt 78,34 % des Grundkapitals der AGRANA Beteiligungs-Aktiengesellschaft. An der AZSF sind die Zucker-Beteiligungsgesellschaft m.b.H. (ZBG), Wien, mit 50 % abzüglich einer Aktie, die von der AGRANA Zucker GmbH, einer Tochter der AGRANA Beteiligungs-Aktiengesellschaft, gehalten wird, sowie die Südzucker AG (Südzucker), Mannheim|Deutschland, mit 50 % beteiligt. 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 Rübenproduzenten Beteiligungs GesmbH und die LEIPNIK-LUNDENBURGER INVEST Beteiligungs Aktiengesellschaft, jeweils Wien, Beteiligungen. Aufgrund eines zwischen der Südzucker und der ZBG abgeschlossenen Syndikatsvertrages sind die Stimmrechte der Syndikatspartner in der AZSF gebündelt und es bestehen u.a. Übertragungsbeschränkungen der Aktien und bestimmte Nominierungsrechte der Syndikatspartner für die Organe der AGRANA Beteiligungs-Aktiengesellschaft 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-Aktiengesellschaft nominiert und bestellt.

Der Vorstand war 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. Der Vorstand verfügt damit seither über keine über die unmittelbaren gesetzlichen Regelungen hinausgehenden Befugnisse, Aktien auszugeben oder zurückzukaufen.

Es gibt keine Inhaber von Aktien, die über besondere Kontrollrechte verfügen. Mitarbeiter, die auch Aktionäre der AGRANA Beteiligungs-Aktiengesellschaft sind, üben ihre Stimmrechte individuell aus.

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.

CORPORATE GOVERNANCE-BERICHT

AGRANA bekennt sich zu den Regelungen des ÖCGK. Im Geschäftsjahr 2020/21 hat AGRANA den ÖCGK in der Fassung vom Jänner 2020 zur Anwendung gebracht. Der Aufsichtsrat der AGRANA Beteiligungs-Aktiengesellschaft hat sich in seinen Sitzungen am 27. November 2020 und 24. Februar 2021 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 2020/21 durch die KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft evaluiert. Die Überprüfung erfolgte auf Basis des Fragebogens zur Evaluierung der Einhaltung des ÖCGK, herausgegeben vom Österreichischen Arbeitskreis für Corporate Governance (Fassung Jänner 2021 bzw. Jänner 2018). Der Bericht über die externe Evaluierung gemäß Regel 62 des ÖCGK ist unter www.agrana.com/ir/corporate-governance abrufbar.

ZWEIGNIEDERLASSUNGEN

Die AGRANA Beteiligungs-Aktiengesellschaft hatte 2020/21 keine Zweigniederlassungen.

EREIGNISSE NACH DEM BILANZSTICHTAG

Nach dem Bilanzstichtag am 28. Februar 2021 sind keine Vorgänge von besonderer Bedeutung eingetreten, die einen wesentlichen Einfluss auf die Ertrags-, Finanz- und Vermögenslage der AGRANA hatten.

PROGNOSEBERICHT

AGRANA sieht sich aufgrund des diversifizierten Geschäftsmodelles und einer soliden Bilanzstruktur für die Zukunft gut aufgestellt.

Trotz der weiterhin großen Herausforderungen aufgrund der COVID-19-Pandemie wird für das Geschäftsjahr 2021/22 mit einem deutlichen Anstieg beim Ergebnis der Betriebstätigkeit (EBIT) gerechnet. Beim Konzernumsatz wird von einem moderaten Anstieg ausgegangen.

Das Investitionsvolumen in den drei Segmenten soll in Summe mit rund 91 Mio. € zwar über dem Wert von 2020/21, jedoch deutlich unter den geplanten Abschreibungen in Höhe von rund 121 Mio. € liegen.

Aufgrund der andauernden COVID-19-Krise und der damit verbundenen hohen Volatilität in allen Segmenten ist die Prognose für das Gesamtjahr weiterhin von sehr hoher Unsicherheit geprägt.

Nachhaltigkeitsausblick 2021|22

Im Geschäftsjahr 2020/21 hat AGRANA intensiv an ihrer Klimastrategie, die im Einklang mit den Pariser Klimazielen sowie den regulatorischen Vorgaben auf nationaler Ebene und EU-Ebene steht, gearbeitet. Alle AGRANA-Geschäftssegmente entwickelten einen Etappenplan mit konkreten Dekarbonisierungszielen und -maßnahmen für ihre Produktionsaktivitäten (Scope 1+2), um bis 2040 bilanziell CO2-neutral zu sein. Im Geschäftsjahr 2021/22 wird ein Projekt zur Quantifizierung von indirekten Emissionen aus der vor- und nachgelagerten Wertschöpfungskette (Scope 3) folgen, um auch für diesen Bereich relevante, ambitionierte Ziele setzen zu können. Über den Fortschritt in der Zielerreichung wird jährlich berichtet.

Aus Sicht der Einzelgesellschaft, der AGRANA Beteiligungs-Aktiengesellschaft, wird für das kommende Geschäftsjahr 2021/22 mit einer stabilen Umsatzentwicklung und einem Ergebnis vor Steuern auf aktuellem Niveau gerechnet.

Wien, am 06. Mai 2021

Der Vorstand Der Vorstand:

Dipl.-Ing. Johann Marihart Mag. Dipl.-Ing. Dr. Fritz Gattermayer

Dipl.-Ing. Johann MARIHART Mag. Dipl.-Ing. Dr. Fritz GATTERMAYER

Mag. Stephan BÜTTNER Dkfm. Thomas KÖLBL

Dipl.-Ing. Dr. Norbert HARRINGER

Statement by the members of the Management Board

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 2021 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 2020|21 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, 6 May 2021

The Management Board of AGRANA Beteiligungs-AG

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 Quality Management, Human Resources, and Organisation, Mergers & Acquisitions, Research and Development Compliance, Legal

Fritz Gattermayer Norbert Harringer Member of the Management Board Member of the Management Board Purchasing & Logistics Investment

Thomas Kölbl Member of the Management Board Responsibility on Internal Audit

Present responsibilities: Sales, Raw Materials, Present responsibilities: Production Coordination,

Independent auditor's report

[Translation]

Report on the Financial Statements

Audit Opinion

We have audited the financial statements of AGRANA Beteiligungs-Aktiengesellschaft, Vienna, which comprise the balance sheet as at 28 February 2021, the income statement for the financial year then ended and the notes.

In our opinion, the accompanying financial statements comply with legal requirements and give a true and fair view of the financial position of the Company as at 28 February 2021, and of its financial performance for the financial year then ended in accordance with Austrian Generally Accepted Accounting Principles.

Basis for Opinion

We conducted our audit in accordance with Regulation (EU) No. 537/2014 (hereinafter EU Regulation) and Austrian Generally Accepted Standards on Auditing. Those standards require the application of the International Standards on Auditing (ISAs). Our responsibilities under those provisions and standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of our report. We are independent of the Company in accordance with Austrian Generally Accepted Accounting Principles and professional requirements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained until the date of the auditor's report is sufficient and appropriate to provide a basis for our opinion by this date.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the financial year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have structured key audit matters as follows:

  • Description
  • Audit approach and key observations
  • Reference to related disclosures

Valuation of shares in affiliated companies and loans to affiliated companies

Description

Shares in affiliated companies and loans to affiliated companies amounting to EUR 638,024,766 make up a material share of the Company's assets. The major part of shares in affiliated companies and loans to affiliated companies can generally not be valued using market prices as they are not available. Determining the current value therefore requires discretionary decisions, estimates and assumptions. This particularly includes planned cash flows, future market conditions, growth rates and cost of capital. Slight changes in these assumptions as well as in the methods used may have a material impact on the valuation.

Due to the matter described, we considered the valuation of shares in affiliated companies and loans to affiliated companies as a key audit matter in our audit.

Audit approach and key observations We:

  • evaluated workflows to make sure they are suitable to identify potential indications of a diminution in value,
  • checked whether the valuation principles were applied consistently,
  • assessed the recognition of individual shares in affiliated companies and loans to affiliated companies based on samples, and
  • tested the recoverability of shares in affiliated companies and loans to affiliated companies in selected cases.

The accounting and valuation principles are applied in accordance with the UGB (Austrian Company Code). We consider the valuation of shares in affiliated companies and loans to affiliated companies to be justifiable.

Reference to related disclosures

See chapter 2. Accounting and valuation methods under 2.2. Fixed assets, sub-item Financial assets in the notes to the financial statements.

Other Information

Management is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements, the management report and our auditor's report thereon. The annual report is expected to be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

Responsibilities of Management and the Audit Committee for the Financial Statements

Management is responsible for the preparation of the financial statements that give a true and fair view in accordance with Austrian Generally Accepted Accounting Principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is 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.

Auditor's Responsibilities for the Audit of the Financial Statements

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 opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the EU Regulation and with Austrian Generally Accepted Standards on Auditing, which require the application of ISAs, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the 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 with Austrian Generally Accepted Standards on Auditing, which require the application of ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.

We also:

  • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risks of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  • 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 Company's internal control.
  • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
  • 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 auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our 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.
  • evaluate the overall presentation, structure and content of the financial statements, including the disclosures, 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, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with all relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

Comments on the Management Report for the Company

Pursuant to Austrian Generally Accepted Accounting Principles, the management report is to be audited as to whether it is consistent with the financial statements and as to whether the management report was prepared in accordance with the applicable legal regulations.

Management is responsible for the preparation of the management report in accordance with Austrian Generally Accepted Accounting Principles.

We conducted our audit in accordance with Austrian standards on auditing for the audit of the management report.

Opinion

In our opinion, the management report for the Company was prepared in accordance with the applicable legal regulations, comprising the details in accordance with section 243a UGB, and is consistent with the financial statements.

Statement

Based on the findings during the audit of the financial statements and due to the obtained understanding concerning the Company and its circumstances no material misstatements in the management report came to our attention.

Additional Information in Accordance with Article 10 of the EU Regulation

We were elected as statutory auditor at the ordinary general meeting dated 3 July 2020. We were appointed by the Supervisory Board on 26 August 2020. We have audited the Company for an uninterrupted period since the financial year 2019|20, ending at the balance sheet date 29 February 2020.

We confirm that the audit opinion in the "Report on the Financial Statements" section is consistent with the additional report to the Audit Committee referred to in Article 11 of the EU Regulation.

We declare that no prohibited non-audit services (Article 5 para.1 of the EU Regulation) were provided by us and that we remained independent of the audited company in conducting the audit.

Responsible Engagement Partner

Responsible for the proper performance of the engagement is Mr. Werner Stockreiter, Austrian Certified Public Accountant.

Vienna, 6 May 2021

PwC Wirtschaftsprüfung GmbH

signed: Werner Stockreiter Austrian Certified Public Accountant

Proposal for the appropriation of profit of AGRANA Beteiligungs-AG Proposal for the appropriation of profit

under Austrian Commercial Code (UGB) of AGRANA Beteiligungs-AG

under Austrian Commercial Code (UGB)

2020 21
The financial year to 28 February 2021 closed with retained profit of 68,942,319
The Management Board proposes to the
Annual General Meeting to allocate this retained profit as follows:
Distribution of a dividend of € 0.85 per ordinary no-par value share
on 62,488,976 participating ordinary shares,
that is, a total of 53,115,630
Retained profit to be carried forward 15,826,689
68,942,319

Publication information

Published by:

AGRANA Beteiligungs-AG Friedrich-Wilhelm-Raiffeisen-Platz 1, 1020 Vienna, Austria

Corporate Communications/Investor Relations

Hannes Haider Phone: +43-1-211 37-12905, Fax: -12926 E-mail: [email protected]

Corporate Communications/Sustainability

Ulrike Middelhoff Phone: +43-1-211 37-12971, Fax: -12926 E-mail: [email protected]

Creative concept and design: The Gentlemen Creatives GmbH Layout and design: marchesani_kreativstudio GmbH English translation: Martin Focken Translating & Editing

Forward-looking statements

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% and up to +50%, or more than –10% and up to –50%
Very significant(ly) iii or sss More than +50% or more than –50%

For financial performance indicators not defined in a footnote, please see the definitions, annual report 2020|21, on page 204.

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 2020|21 Online reports.agrana.com/en

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