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AGRANA Beteiligungs-AG

Quarterly Report Jan 13, 2014

733_rns_2014-01-13_a2facd7e-ebf5-4b09-b1e2-1e6b5cd47c52.pdf

Quarterly Report

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REPORT ON THE FIRST THREE QUARTERS OF 2013|14

HIGHLIGHTS OF THE FIRST THREE QUARTERS OF 2013|14

  • █ Revenue: € 2,416.9 million (Q1–Q3 2012|13: € 2,389.3 million)
  • █ Operating profit before exceptional items: € 158.6 million (Q1–Q3 2012|13: € 204.3 million)
  • █ Operating margin: 6.6% (Q1–Q3 2012|13: 8.6%)
  • █ Profit for the period: € 102.6 million (Q1–Q3 2012|13: € 138.6 million)
  • █ Equity ratio: 46.7% (28 February 2013: 47.0%)
  • █ Gearing¹: 37.0% (28 February 2013: 39.9%)

Debt-equity ratio (ratio of net debt to total equity).

Letter from the CEO

GROUP MANAGEMENT REPORT

  • Results for the first three quarters of the year
  • Sugar segment
  • Starch segment
  • Fruit segment
  • Management of risks and opportunities
  • Significant events after the interim reporting date
  • Outlook

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

  • Consolidated income statement
  • Consolidated statement of comprehensive income
  • Condensed consolidated cash flow statement
  • Consolidated balance sheet
  • Condensed consolidated statement of changes in equity
  • Notes to the interim consolidated financial statements

MANAGEMENT BOARD'S RESPONSIBILITY STATEMENT

Further information

LETTER FROM THE CEO

DEAR INVESTOR, 03

In the first three quarters of the 2013|14 financial year, AGRANA's revenue of more than € 2.4 billion was up slightly from one year earlier. However, declining market prices in the Sugar and Starch segments weighed on operating profit, although the operating margin did rise sequentially in the third quarter compared to the second. Over the past nine months, AGRANA generated operating profit of approximately € 159 million before exceptional items, which represents a margin of 6.6%.

AGRANA continues to invest in sustained growth. In November a 60,000 tonne capacity, € 11 million sugar silo was brought on-stream in Kaposvár, Hungary, and in the summer, production was successfully launched at the new wheat starch plant in Pischelsdorf, Austria (representing investment of € 70 million). The construction of our fourth fruit preparations plant in the United States (with a total investment of € 30 million) is progressing on schedule; from May 2014 this facility in Lysander, N.Y., is to produce fruit ingredients for the dairy, bakery and ice cream industries.

The third quarter is when the key raw materials for our manufacturing operations are harvested; the quantity and quality of the crops have a major influence on prices and costs. This year, at over 6 million tonnes, AGRANA is processing significantly more sugar beets than last year. The potato and corn harvests, which are relevant for the Starch segment, were below average in Austria as a result of dry weather, while the excellent corn (maize) harvest in the USA broke records. Similarly, the apple crops this year were generally somewhat poorer than last year, but the still considerable Chinese concentrate stocks from the prior year are weighing on prices.

Given this challenging market environment and the business performance for this year to date, AGRANA expects Group revenue for the full 2013|14 financial year to be steady at the prior-year level. However, operating profit before exceptional items will be less than in the very good last two financial years.

On behalf of the whole Management Board, I would like to extend a sincere thank-you to our employees for their hard work, as well as to our partners and shareholders for their support and trust in the past calendar year.

Sincerely

Johann Marihart Chief Executive Officer

GROUP MANAGEMENT REPORT FOR THE FIRST NINE MONTHS ENDED 30 NOVEMBER 2013

04 RESULTS FOR THE FIRST THREE QUARTERS OF 2013|14

Revenue and earnings

AGRANA Group Q1–Q3 Q1–Q3
2013 14 2012 13
Revenue € 2,416.9m € 2,389.3m
EBITDA1 € 223.5m € 262.8m
Operating profit before
exceptional items € 158.6m € 204.3m
Operating margin 6.6% 8.6%
Exceptional items € 0.0m (€ 1.4m)
Operating profit after
exceptional items € 158.6m € 202.9m
Purchases of property, plant
and equipment and intangibles2 € 98.2m € 98.7m
Staff count3 8,882 8,555
AGRANA Group Q3 Q3
2013 14 2012 13
Revenue € 742.6m € 786.2m
EBITDA1 € 76.5m € 86.2m
Operating profit before
exceptional items € 50.6m € 61.8m
Operating margin 6.8% 7.9%
Exceptional items € 0.0m (€ 0.4m)
Operating profit after
exceptional items € 50.6m € 61.4m
Purchases of property, plant
and equipment and intangibles2 € 38.9m € 39.1m

Revenue of the AGRANA Group rose by € 27.6 million in the first three quarters of the 2013|14 financial year (1 March to 30 November 2013) to a new total of € 2,416.9 million (Q1–Q3 2012|13: € 2,389.3 million). While revenue in the Sugar segment, for volume and price reasons, was below the level of one year earlier, revenue grew in the Starch and Fruit segments as a result of higher sales volumes.

In the first nine months of 2013|14 the Group's operating profit before exceptional items was € 158.6 million, a decrease of 22.4% from the year-earlier period (Q1–Q3 2013|14: € 204.3 million). While the Fruit segment strongly improved its pre-exceptionals operating profit, margins in the Sugar and Starch segments were hurt by easing selling prices since the summer. The exceptional items in the prior-year period arose from reorganisation measures in the Fruit segment. Net financial items in the first three quarters of 2013|14 amounted to a net expense of € 22.2 million (Q1–Q3 2012|13: net expense of € 21.1 mil-

1 Before exceptional items.

lion), with an improvement in net interest expense but also with higher unrealised currency translation losses. After an income tax expense of € 33.9 million, corresponding to a tax rate of 24.8% (Q1–Q3 2012|13: 23.7%), the Group's profit for the period was € 102.6 million (Q1–Q3 2012|13: € 138.6 million). With non-controlling interests deducted, earnings per share attributable to AGRANA's shareholders were € 6.80 (Q1–Q3 2012|13: € 9.44).

Investment

In the first three quarters of 2013|14, € 98.2 million (Q1–Q3 2012|13: € 98.7 million) was invested in property, plant and equipment and intangible assets. The Sugar segment accounted for € 33.8 million of this total (Q1–Q3 2012|13: € 44.8 million). At the Austrian site in Tulln, the laboratory building expansion of R&D provider Zuckerforschung Tulln was completed as planned. In November in Kaposvár, Hungary, the new 60,000 tonne sugar silo was officially opened; its initial filling is progressing on schedule. At the Czech sites of Hrušovany and Opava, beet thin-juice softening plants were installed and commissioned, and a waste water treatment plant was built and brought on-stream in Roman, Romania. The project phase of logistics optimisation in Buzău, Romania, is on plan and the installation of a silo conditioning system is well advanced.

Investment in the Starch segment during the first three quarters of the 2013|14 financial year amounted to € 33.7 million (Q1–Q3 2012|13: € 33.3 million) and was allocated mainly to the Pischelsdorf site in Austria. There the wheat starch plant and an administration building (which replaces container offices) were completed and energy efficiency was raised by waste heat recovery from the drying of feedstuffs. At the Hungarian joint venture, HUNGRANA, capital expenditure was for the "water-free ethanol" project and a new gas turbine. In Aschach, Austria, production capacity for wax corn derivatives is being expanded. At Gmünd, Austria, improvements included the upgrading of the bagging equipment for the drum drying system.

Capital spending in the Fruit segment was € 30.7 million (Q1–Q3 2012|13: € 20.6 million). The main project in this segment is currently the construction of the Group's fourth North American fruit preparations plant (in Lysander, N.Y.), which will supply customers in the Northeastern United States and Canada. Its completion is planned for the second calendar quarter of 2014. Capacity was added in Ukraine by installing an additional production line. The global sales volume growth in fruit preparations also increased the need for stainless steel containers for transport. In the fruit juice concentrate activities, investment

2 Excluding goodwill.

3 Average number of employees in the period.

focused primarily on enhancing production efficiency. At the Austrian facility in Kröllendorf/Allhartsberg, work began on the expansion resulting from the merging of production operations from Gleisdorf within the AUSTRIA JUICE sub-group.

Cash flow

Operating cash flow before change in working capital followed operating earnings downward, declining by 21.1% year-on-year to € 172.8 million (Q1–Q3 2012|13: € 219.0 million).

With a decrease of € 15.4 million in working capital (Q1–Q3 2012|13: increase of € 75.4 million), net cash from operating activities in the first three quarters of 2013|14 was € 187.1 million (Q1–Q3 2012|13: € 142.7 million). Net cash used in investing activities amounted to € 96.8 million (Q1–Q3 2012|13: net cash used of € 90.4 million), reflecting outflows for purchases of property, plant and equipment and intangible assets. After a net reduction in borrowings and after payment of the dividend for the 2012|13 financial year, net cash used in financing activities was € 74.4 million (Q1–Q3 2012|13: net cash used of € 5.8 million).

Financial position

Total assets were up slightly from the 2012|13 balance sheet date to € 2.65 billion (28 February 2013: € 2.58 billion), bringing the equity ratio to 46.7% (28 February 2013: 47.0%).

While trade receivables went up markedly, inventory levels eased, with a resulting net increase in current assets. Non-current liabilities declined as long-term borrowings were paid down. Current liabilities were up, as a consequence primarily of higher current borrowings and a seasonal increase in trade and other payables.

Net debt at 30 November 2013 measured € 458.6 million, down € 25.1 million from the 2012|13 financial year-end figure of € 483.7 million. The gearing ratio of 37.0% at the quarterly balance sheet date was thus below the level of 28 February 2013 (39.9%).

AGRANA in the capital market

Share data Q1–Q3
2013 14
High (12 Jun 2013) € 115.10
Low (29 Nov 2013) € 88.30
Closing price (29 Nov 2013) € 88.30
Closing book value per share (29 Nov 2013) € 80.81
Closing market capitalisation (29 Nov 2013) € 1,254.0m

After the record year 2012|13, AGRANA started the 2013|14 financial year at a share price of € 101.50. The average trading volume in the nine-month reporting period was about 2,100 shares per day (based on double counting, as published by the Vienna Stock Exchange), an increase from the prior year. In a continuing demanding environment, AGRANA's share price was € 88.30 at the quarterly balance sheet date, down 13%. While 12 June saw a new all-time high of € 115.10, from the middle of July AGRANA's share price remained around the € 90 mark. The Austrian blue-chip index, the ATX, gained 7.26% in the reporting period.

AGRANA's share price performance can be followed in the investor relations section of the Group's homepage at www.agrana.com. The market capitalisation at 30 November 2013 was € 1,254.0 million, with an unchanged 14,202,040 shares outstanding.

In the third quarter AGRANA remained in regular contact with investors, financial journalists and analysts and met with investors at events such as road shows in Amsterdam, Brussels, Munich and Zurich, as well as a Capital Markets Day in Austria.

SUGAR SEGMENT

Market environment World sugar market

In its initial estimate for the 2013|14 sugar marketing year (SMY), the analytics firm F.O. Licht is projecting a decrease in total sugar production to 182.0 million tonnes (SMY 2012|13: 183.4 million tonnes) and further growth in consumption to 175.2 million tonnes (SMY 2012|13: 172.1 million tonnes). World sugar stocks are expected to increase from 76.7 million tonnes to 81.1 million tonnes.

While production growth of 2.0 million tonnes (especially in Thailand) to a new regional total of 69.2 million is predicted for Asia, sugar production in Europe is to reach 25.9 million tonnes, or 2.6 million tonnes less than in the prior year.

The world market price for sugar remained volatile in the current financial year. From USD 395 or € 304 per tonne at the start of the financial year on 1 March 2013, raw sugar marked an interim high in October before declining to USD 374 or € 276 per tonne as of the end of the reporting period. White sugar, which traded around USD 514 or € 395 per tonne at the beginning of the financial year, quoted at USD 445 or € 336 per tonne at the end of the reporting period.

EU sugar market

As in the previous sugar marketing year, the European Commission took two exceptional measures in the completed SMY 2012|13 to increase the supply in the EU sugar market beyond the quota sugar stocks available. Through a standing invitation to tender for sugar imports at reduced tariffs, approximately 550,000 tonnes of sugar was cleared for preferential import. In addition, four tranches of out-of-quota sugar of 150,000 tonnes each were reclassified as quota sugar and sold into the EU food market. According to European Commission statistics, a total of 1.15 million tonnes of additional sugar was thus available to the market.

At the same time, the Commission released quantities of European out-of-quota sugar for export. In total, export licences for 1.35 million tonnes were available for the completed SMY 2012|13 (this represents the export limit set by the World Trade Organisation, the WTO). For SMY 2013|14, exports have also been capped at 1.35 million tonnes.

EU sugar policy

In the talks to extend the Common Agricultural Policy to 2020, the European Parliament and the EU Agriculture and Fisheries Council have corrected the European Commission's proposal to let the quota and minimum beet price regulations expire as early as the end of SMY 2014|15. Instead they have agreed on an extension to the end of SMY 2016|17 (30 September 2017).

After the expiration at 30 September 2017 of the sugar and isoglucose quotas and of the arrangements on the minimum price for beet, the new regime for the intra-EU market – in addition to an unchanged reference price of € 404 per tonne for white sugar – provides for the possibility of government-funded private storage and makes contracts between beet growers and the sugar industry mandatory. As a consequence, all players in the sugar value chain must prepare themselves for the fact that the world market volatility in terms of volumes and prices will make itself felt more strongly in the EU sugar market than it has to date.

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

Raw materials, crops and production

The acreage planted to sugar beet by AGRANA contract growers in SMY 2013|14 was approximately 105,000 hectares (SMY 2012|13: 104,000 hectares), of which just over 650 hectares in Austria was dedicated to organic beet production. 2013 was a year of extremes in growing conditions: a total of about 3,000 hectares of beet fields was lost to production – in the spring as a result of frost, mud deposits and other obstacles to crop emergence, and in the summer due first to flooding and later to dry, hot weather. Overall, average beet yields are expected for the beet-growing areas of the AGRANA Group, with sharp variation between regions. In total, AGRANA expects a harvest of approximately 6.1 million tonnes of beet (SMY 2012|13: 5.5 million tonnes). As a result of the weather during the harvest period and the relatively good conservation of sugar content during pre-delivery storage of the beet, the sugar content of the 2013 crop can be regarded as average.

Financial results

Sugar segment Q1–Q3 Q1–Q3
2013 14 2012 13
Revenue € 850.9m € 926.6m
EBITDA € 67.2m € 118.0m
Operating profit before
exceptional items € 52.0m € 105.3m
Operating margin 6.1% 11.4%
Purchases of property, plant
and equipment and intangibles1 € 33.8m € 44.8m
Sugar segment Q3 Q3
2013 14 2012 13
Revenue € 247.8m € 292.6m
EBITDA € 20.6m € 41.5m
Operating profit before
exceptional items € 13.8m € 34.1m
Operating margin 5.6% 11.7%
Purchases of property, plant
and equipment and intangibles1 € 10.7m € 19.0m

In the first nine months of the financial year, revenue in the Sugar segment declined by € 75.7 million year-on-year. The key reasons were lower quota sugar sales volume and pricing and a weaker export business. While sugar sales volumes eased slightly, revenues from by-products and other products were constant. The generally higher sugar stocks and the low world market prices are putting substantial pressure on prices in the EU.

As expected, the pre-exceptionals operating profit of € 52.0 million in the first three quarters of 2013|14 was well below the high level of the prior year (€ 105.3 million). Aside from the greater price pressure and lower sugar sales quantities, the margin was squeezed by the increased production costs of the 2012|13 campaign and the fact that in the middle of the year, costs for raw sugar were still relatively high.

STARCH SEGMENT

Market environment

World grain production in 2013|14 is estimated by the International Grains Council1 at 1.95 billion tonnes (2012|13: 1.79 billion tonnes), which exceeds the expected consumption. For wheat, production is forecast at 698 million tonnes (2012|13: 655 million tonnes), and the prediction for corn is 950 million tonnes (2012|13: 863 million tonnes). Worldwide consumption is estimated at 692 million tonnes for wheat and 922 million tonnes for corn. Global stocks will therefore increase, particularly for corn.

Total grain production in the European Union is estimated at approximately 301 million tonnes (2012|13: 278 million tonnes). The soft wheat harvest is forecast at about 135 million tonnes, which is more than the production in 2012 (126 million tonnes). The 2013 corn harvest in the EU is expected to reach about 65 million tonnes, up 12% from last year. Demand for wheat in the EU is estimated at 112 million tonnes and corn demand is projected at 72 million tonnes2.

The quotations on the NYSE Liffe (Euronext) commodity derivatives exchange in Paris at the end of November 2013 were around € 178 per tonne for corn and € 210 per tonne for wheat (end of November 2012: € 253 and € 270 per tonne, respectively).

Raw materials, crops and production

On a planting area of about 6,000 hectares (a decrease from the prior year), the starch potato harvest in Austria – including organic potatoes – amounted to approximately 165,000 tonnes in the 2013|14 financial year (2012|13: 218,000 tonnes). Fulfilment of starch potato grower contracts for the plant in Gmünd will be around 72% of the contracted volume of about 230,000 tonnes of starch potatoes; this represents a weather-induced reduction from the prior year's figure of 83% fulfilment.

The corn starch plant in Aschach, Austria, processed approximately 112,000 tonnes of freshly harvested wet corn and thus also lagged behind the prior year's value (of 123,000 tonnes) for weather reasons. In the 88 days of the wet-corn campaign (2012|13: 103 days), the volume processed consisted of 97,000 tonnes of yellow corn and 15,000 tonnes of specialty corn (waxy corn, organic corn, organic waxy, and certified non-GMO corn). Since then, production has switched back to the use of dry corn. For the full financial year, corn processing volume is expected to be in line with the prior year's at about 400,000 tonnes.

In Hungary, a total of 1.06 million tonnes of corn is forecast to be processed in 2013|14 (2012|13: 1.08 million tonnes). The utilization of wet corn was completed at the end of November 2013; the 230,000 tonnes of wet corn processed significantly exceeded the prior year's 160,000 tonnes. Total corn processing at the Romanian plant in 2013|14 should amount to approximately 56,000 tonnes (2012|13: 51,000 tonnes).

In the bioethanol plant at Pischelsdorf, Austria, approximately 93,500 tonnes of wet corn was processed from the middle of September to early December 2013 (2012|13: 116,500 tonnes). For the full financial year, total grain processing volume (of wheat, corn and triticale) at the facility is expected to reach about 632,000 tonnes (2012|13: 548,000 tonnes). The wheat starch factory successfully began operation in June 2013 and production is on target.

Financial results

Starch segment Q1–Q3 Q1–Q3
2013 14 2012 13
Revenue € 659.9m € 603.7m
EBITDA € 68.2m € 78.2m
Operating profit before
exceptional items € 47.9m € 60.8m
Operating margin 7.3% 10.1%
Purchases of property, plant
and equipment and intangibles3
€ 33.7m € 33.3m
Starch segment Q3
2013 14
Q3
2012 13
Revenue € 216.3m € 208.8m
EBITDA € 28.6m € 20.2m
Operating profit before
exceptional items € 21.6m € 14.3m
Operating margin 10.0% 6.9%
Purchases of property, plant
and equipment and intangibles3 € 12.4m € 13.9m

2 Tallage|Stratégie Grains market report of December 2013.

3 Excluding goodwill.

Revenue of the Starch segment in the first half of 2013|14 was € 659.9 million, representing growth of 9.3% from a year ago (€ 603.7 million). The increase was propelled largely by higher sales volumes both of by-products and core products, especially bioethanol and other alcohol. Selling prices for core products were up slightly from the prior year's comparative period. The quantities and sales prices of resold feedstuffs were considerably better than one year earlier.

The operating profit of € 47.9 million before exceptional items was 21.2% below the prior-year comparative period result of € 60.8 million. The primary reason was a lower profit contribution from HUNGRANA, the joint venture in Hungary. Owing to intensified competition, selling prices also decreased. As well, the commissioning of the wheat starch plant in Pischelsdorf, Austria, entailed the expected start-up losses. The decrease in earnings combined with higher revenue led to a contraction in operating margin from 10.1% to 7.3%.

FRUIT SEGMENT

Market environment

Within the EU, the fruit yoghurt market can be expected to stagnate. Outside Europe, by contrast, the market for fruit yoghurts is growing by 3% to 5% a year. Aside from the rising per-capita consumption, products with a higher fruit content, particularly in North America (helped by the popularity of Greek yoghurt) are also contributing much to this expansion. A trend towards premium products is noticeable above all in the Latin American and Asian emerging markets.

For beverages with a high content of fruit juice, consumption in Western Europe remains on a mild easing trend, with most of this decrease occurring in Germany. As well, the first quarter in Germany was marked by low temperatures and persistent rain, which also contributed to the decline in consumption. The very good weather in the summer then made up for the cool spring, resulting in an average first half of the financial year; the third quarter did not bring any further significant changes in consumption. The non-alcoholic beverage industry continues to witness consolidation. In the USA in recent months, substantial price erosion for Chinese apple juice concentrate has driven up imports of the product from China compared to the prior year.

Raw materials, crops or crop forecasts, and production

As expected, raw material expenses in the fruit preparations business were lower this year than in 2012|13. The moderate market demand had suggested that purchasing prices would fall significantly; working against this effect were both the strengthening of some currencies in the main procurement markets, and unexpectedly poor crops (peach in Europe and overseas, apricot and raspberry in Europe), which, given the high purchasing volumes involved, had a strong impact on prices overall. As raw material needs are sufficiently covered to the end of the financial year, raw material costs can be expected to be stable.

In the fruit juice concentrates business, the available raw material quantities for apple juice concentrate in the top European apple-producing countries (Poland and Hungary) were less than in the previous year. A particular driver of prices and trade flows for raw apples was the poor crop in Germany. Also noteworthy was the favourable raw material situation in Turkey, as a result of which, for the first time in a number of years, sweet apple juice concentrate cost less in Europe than sour (high-acidity) apple juice concentrate. After the prior year's overproduction in China, the manufacturers there sought to restrict their production volumes in this year's processing season in order to stop prices for Chinese apple juice concentrate from falling further.

Financial results

Fruit segment Q1–Q3 Q1–Q3
2013 14 2012 13
Revenue € 906.1m € 859.1m
EBITDA € 88.2m € 66.6m
Operating profit before
exceptional items € 58.8m € 38.2m
Operating margin 6.5% 4.4%
Purchases of property, plant
and equipment and intangibles1 € 30.7m € 20.6m
Fruit segment Q3 Q3
2013 14 2012 13
Revenue € 278.5m € 285.7m
EBITDA € 27.1m € 24.5m
Operating profit before
exceptional items € 15.4m € 13.4m
Operating margin 5.5% 4.7%
Purchases of property, plant
and equipment and intangibles1 € 15.8m € 6.2m

Revenue in the Fruit segment rose by 5.5% year-on-year in the first three quarters of 2013|14, to € 906.1 million (Q1–Q3 2012|13: € 859.1 million). The sales volume

of fruit preparations was expanded by about 6%. The volume gains were achieved both outside Europe (with growth of approximately 8%) and in the EU, where they increased by about 4% compared to one year earlier. Revenue growth was also recorded in fruit juice concentrates, driven primarily by higher sales quantities of apple juice concentrate (partly as a result of the Ybbstaler volume, which the first quarter of the prior year did not yet include).

Segment operating profit before exceptional items was € 58.8 million, up 53.9% from one year earlier. The operating margin of 6.5% was 2.1 percentage points better than a year ago. The key driver of the profit expansion was sales volume growth in fruit preparations. In the fruit juice concentrate activities, operating profit rose thanks to the beneficial contract situation from the (2012) prior-year campaign. Additional earnings also came from the full consolidation of the Ybbstaler companies in the first quarter of 2013|14 (consolidated since the second quarter of 2012|13).

MANAGEMENT OF RISKS AND OPPORTUNITIES

AGRANA uses an integrated system for the early identification and monitoring of risks that are relevant to the Group. There are at present no known risks to the AGRANA Group's ability to continue in operational existence, and no future risks of this nature are currently discernible. A detailed description of the Group's business risks is provided on pages 69 to 73 of the annual report 2012|13.

Amid the persistent crisis of confidence in European capital markets, the general risk of customer/counterparty default has risen, as has the level of currency risk. To control these risks, the risk management system is continually updated.

Through the rigorous investigation and correction of last year's earnings-reducing irregularities at AGRANA Fruit México, S.A. de C.V., confidence in the integrity of the local business transactions was restored. In order to prevent any recurrence of such a case at a company of the AGRANA Group, the control and monitoring system was further reinforced and tightened, both internally and externally. The question of insurance coverage remains under negotiation with the insurance company.

SIGNIFICANT EVENTS AFTER THE INTERIM REPORTING DATE

No significant events occurred after the balance sheet date of 30 November 2013 that had a material effect on AGRANA's financial position, results of operations or cash flows.

OUTLOOK

For the 2013|14 financial year, AGRANA expects Group revenue to come in at the prior-year level, with growth in sales volumes making up for easing market prices. As anticipated, and as borne out by results for the year to date, operating profit before exceptional items will be less than in the very good last two financial years.

In the Sugar segment in the fourth quarter, revenue and earnings are expected to be seasonally lower than in the third quarter of 2013|14. With a slight decrease in full-year revenue, amid declining prices and margins, segment operating profit for the full financial year is projected to be significantly less than in the prior year.

For the Starch segment a revenue increase is expected for the financial year, thanks particularly to the Austrian wheat starch plant in Pischelsdorf that began production in June. Stable market demand for starch products both in the non-food sector and in isoglucose, bioethanol and by-products is meeting an easing trend in selling prices. For potato-based products, the poor harvest in Central Europe has resulted in tight supply and thus higher prices. For the year as a whole, AGRANA continues to believe that, for reasons including the budgeted start-up losses of the wheat starch plant, the Starch segment will not reach the operating profit level of 2012|13.

In the Fruit segment, based on the good first nine months, the outlook for the full 2013|14 financial year is for an increase in revenue and significant growth in operating profit. For the fruit preparations activities, AGRANA expects that the fourth quarter too will see growth in revenue and earnings. A further increase in operating profit will be attained for the full year on net stability in raw material prices, through sales volume growth and cost savings. In the fruit juice concentrate business, somewhat reduced demand for apple juice concentrate is predicted for the fourth quarter. For the financial year as a whole, AGRANA is projecting juice concentrate revenue slightly higher than last year's, with satisfactory margins.

Across all three segments, a total of about € 140 million will be invested in the 2013|14 financial year in order to provide solid support for the Group's long-term growth.

09

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FIRST NINE MONTHS ENDED 30 NOVEMBER 2013 (UNAUDITED)

Third quarter First nine months
(1 September–30 November) (1 March–30 November)
CONSOLIDATED INCOME STATEMENT 2013 14 2012 13 2013 14 2012 13
¤000 ¤000 ¤000 ¤000
Revenue 742,589 786,197 2,416,928 2,389,327
Changes in inventories of finished and unfinished goods 186,512 302,464 (122,892) 16,497
Own work capitalised 1,027 2,792 3,528 4,071
Other operating income 3,960 9,285 13,889 27,755
Cost of materials (693,322) (855,378) (1,620,813) (1,705,996)
Staff costs (74,693) (72,331) (210,494) (199,335)
Depreciation, amortisation and impairment losses (25,893) (24,461) (64,889) (58,539)
Other operating expenses (89,548) (87,255) (256,613) (270,928)
Operating profit after exceptional items 50,632 61,313 158,644 202,852
Finance income (124) 978 5,844 7,483
Finance expense (6,590) (9,035) (27,998) (28,572)
Net financial items (6,714) (8,057) (22,154) (21,089)
Profit before tax 43,918 53,256 136,490 181,763
Income tax expense (10,475) (14,1749 (33,868) (43,123)
Profit for the period 33,443 39,082 102,622 138,640
Attributable to shareholders of the parent 31,417 36,651 96,617 134,130
Attributable to non-controlling interests 2,026 2,431 6,005 4,510
Earnings per share under IFRS
(basic and diluted) € 2.21 € 2.58 € 6.80 € 9.44
Third quarter First nine months
(1 September–30 November) (1 March–30 November)
CONSOLIDATED STATEMENT 2013 14 2012 13 2013 14 2012 13
OF COMPREHENSIVE INCOME ¤000 ¤000 ¤000 ¤000
Profit for the period 33,443 39,082 102,622 138,640
Other comprehensive income/(expense)
– Currency translation differences (9,333) (2,533) (25,270) 5,240
– Available-for-sale financial assets under IAS 39,
after deferred tax 33 (89) 147 28
– Cash flow hedges under IAS 39, after deferred tax 1,580 1,506 1,366 6,979
(Expense)/income to be recognised in the
income statement in the future (7,720) (1,116) (23,757) 12,247
– Change in actuarial gains and losses on defined
benefit pension obligations and similar liabilities (IAS 19),
after deferred tax 4 4 13 (7)
(Expense)/income recognised directly in equity (7,716) (1,112) (23,744) 12,240
Total comprehensive income for the period 25,727 37,970 78,878 150,880
Attributable to shareholders of the parent 22,987 34,805 73,496 142,180
Attributable to non-controlling interests 2,740 3,165 5,382 8,700
CONSOLIDATED BALANCE SHEET 30 November 28 February
2013 20131
€000 €000
ASSETS
A. Non-current assets
Intangible assets 245,927 249,338
Property, plant and equipment 709,590 685,481
Securities 105,495 105,264
Investments in non-consolidated subsidiaries and outside companies 5,690 5,745
Receivables and other assets 28,505 18,945
Deferred tax assets 36,193 33,137
1,131,400 1,097,910
B. Current assets
Inventories 822,949 851,492
Trade receivables and other assets 522,104 472,084
Current tax assets 18,791 11,271
Securities 38 1,198
Cash and cash equivalents 155,685 144,409
1,519,567 1,480,454
Total assets 2,650,967 2,578,364
A. EQUITY AND LIABILITIES
Equity
Share capital 103,210 103,210
Share premium and other capital reserves 411,362 411,362
Retained earnings 633,029 611,257
Equity attributable to shareholders of the parent 1,147,601 1,125,829
Non-controlling interests 90,972 86,060
1,238,573 1,211,889
B. Non-current liabilities
Retirement and termination benefit obligations 58,799 58,844
Other provisions 15,610 15,179
Borrowings 333,103 428,788
Other payables 1,453 2,283
Deferred tax liabilities 20,053 14,368
429,018 519,462
C. Current liabilities
Other provisions 25,524 29,186
Borrowings 386,665 305,802
Trade and other payables 528,888 471,421
Current tax liabilities 42,299 40,604
983,376 847,013

Total equity and liabilities 2,650,967 2,578,364

11

CONDENSED CONSOLIDATED CASH FLOW STATEMENT 2013 14 2012 13
for the first nine months (1 March–30 November) ¤000
Operating cash flow before change in working capital 172,841 218,997
Gains on disposal of non-current assets (1,169) (831)
Change in working capital 15,445 (75,448)
Net cash from operating activities 187,117 142,718
Net cash (used in) investing activities (96,800) (90,401)
Net cash (used in) financing activities (74,441) (5,754)
Net increase in cash and cash equivalents 15,876 46,563
Effect of movements in foreign exchange rates on cash and cash equivalents (4,600) 679
Cash and cash equivalents at beginning of period 144,409 98,504
Cash and cash equivalents at end of period 155,685 145,746
CONDENSED CONSOLIDATED Equity Non- Total
STATEMENT OF CHANGES IN EQUITY attributable to controlling
for the first nine months (1 March–30 November) shareholders interests
of the parent
¤000 ¤000 ¤000
2013 14
Published at 1 March 2013 1,126,036 86,060 1,212,096
IAS 8 restatement (207) 0 (207)
Restated at 1 March 2013 1,125,829 86,060 1,211,889
Fair value movements under IAS 39 923 590 1,513
Change in actuarial gains and losses on
defined benefit pension obligations and similar liabilities 14 (1) 13
Currency translation loss (24,058) (1,212) (25,270)
Other comprehensive (expense) for the period (23,121) (623) (23,744)
Profit for the period 96,617 6,005 102,622
Total comprehensive income for the period 73,496 5,382 78,878
Dividends paid (51,127) (886) (52,013)
Other changes (597) 416 (181)
At 30 November 2013 1,147,601 90,972 1,238,573

2012|13

Published at 1 March 2012 1,039,472 33,516 1,072,988
IAS 8 restatement (233) 0 (233)
Restated at 1 March 2012 1,039,239 33,516 1,072,755
Fair value movements under IAS 39 4,523 2,486 7,009
Change in actuarial gains and losses on
defined benefit pension obligations and similar liabilities 21 (30) (9)
Currency translation gain 3,506 1,734 5,240
Other comprehensive income for the period 8,050 4,190 12,240
Profit for the period 134,130 4,510 138,640
Total comprehensive income for the period 142,180 8,700 150,880
Dividends paid (51,127) (1,322) (52,449)
Other changes (1,729) 45,556 43,827
At 30 November 2012 1,128,563 86,450 1,215,013

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FIRST NINE MONTHS ENDED 30 NOVEMBER 2013 (UNAUDITED)

SEGMENT REPORTING 2013 14 2012 13 2013 14 2012 13
for the first nine months ¤000 ¤000 ¤000 ¤000
(1 March–30 November)
Operating profit after
Total revenue exceptional items
Sugar 915,581 988,663 Sugar 51,969 105,311
Starch 667,931 610,958 Starch 47,922 60,759
Fruit 906,575 859,996 Fruit 58,753 38,180
Group 2,490,087 2,459,617 Operating profit before
exceptional items 158,644 204,250
Exceptional items 0 (1,398)
Operating profit after
exceptional items 158,644 202,852
Purchases of property, plant
Inter-segment revenue and equipment and intangibles1
Sugar (64,698) (62,095) Sugar 33,757 44,811
Starch (8,032) (7,272) Starch 33,747 33,330
Fruit (429) (923) Fruit 30,740 20,573
Group (73,159) (70,290) Group 98,244 98,714
Revenue Staff count
Sugar 850,883 926,568 Sugar 2,355 2,317
Starch 659,899 603,686 Starch 1,003 944
Fruit 906,146 859,073 Fruit 5,524 5,294

BASIS OF PREPARATION

The interim report of the AGRANA Group for the nine months ended 30 November 2013 was prepared in accordance with the rules for interim financial reporting under IAS 34, in compliance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and their interpretation by the IFRS Interpretations Committee. Consistent with IAS 34, the consolidated financial statements of AGRANA Beteiligungs-AG at and for the period ended 30 November 2013 are presented in condensed form. These interim consolidated financial statements were not audited or reviewed. They were prepared by the Management Board of AGRANA Beteiligungs-AG on 2 January 2014.

The annual report 2012|13 of the AGRANA Group is available on the Internet at www.agrana.com for online viewing or downloading.

ACCOUNTING POLICIES

In the preparation of these interim accounts, the following IFRS and interpretations which became effective in the 2013|14 financial year were applied for the first time.

IAS 19 (Employee Benefits, Revised 2011): The key revision to IAS 19 was that actuarial gains and losses must now be recognised in other comprehensive income (and thus in equity); this change was early-adopted by AGRANA in the 2011|12 financial year under IAS 19 in its then current form. The changes in the first nine months of 2013|14 relate to the correction of past service cost, with the effect of an increase in provisions for pensions and termination benefits. These changes were made retrospectively from the beginning of the 2012|13 financial year.

In the prior year's opening balance sheet at 1 March 2012, the adjustments led to an increase of € 349.5 thousand in pension and termination benefit provisions, and an increase of € 116.5 thousand in deferred tax assets. The net effect was a reduction of € 233.0 thousand in consolidated shareholders' equity. The adjustments to the 2012|13 14 income statement will be made at the end of the 2013|14 financial year, as most of the pension and termination benefit provisions to be restated had as usual been recognised in the income statement at the 2012|13 year-end. The restatement will involve a decrease of € 39.4 thousand in 2012|13 staff costs and a total increase of € 26.2 thousand in profit for the period. The resulting change of € 13.1 thousand in deferred tax liabilities has already been recognised in the first quarter of 2013|14. As non-cash items, none of the effects cited have an impact on the cash flow statement.

The amendments to IFRS 7 (Financial Instruments: Disclosures) and the newly effective IFRS 13 (Fair Value Measurement) together with the amended IAS 34 (Interim Financial Reporting) have led to expanded disclosures on financial instruments and on fair value measurement which are presented in the section "Financial instruments".

The amended IAS 12 (Income Taxes) and the newly effective IFRIC 20 (Stripping Costs in the Production Phase of a Surface Mine) had no material effects on the interim consolidated financial statements.

Except as noted above, the same accounting methods were applied as in the preparation of the annual consolidated financial statements for the year ended 28 February 2013 (the most recent full financial year).

The notes to those 2012|13 annual consolidated financial statements therefore apply mutatis mutandis to these interim accounts. Corporate income taxes were determined on the basis of country-specific income tax rates, taking into account the tax planning for the full financial year.

SCOPE OF CONSOLIDATION

In the first nine months of 2013|14 there were no material changes in the list of entities included in the consolidated financial statements.

REVENUE BY SEGMENT Sugar segment 35.2% Fruit segment 37.5% Starch segment 27.3% Q1–Q3 2013|14

SEASONALITY OF BUSINESS

Most of the Group's sugar production falls into the three months from October to December. Depreciation and impairment of plant and equipment used in the campaign are therefore incurred largely in the financial third quarter. The material costs, staff costs and other operating expenses incurred before the sugar campaign in preparation for production are recognised intra-year under the respective type of expense and capitalised within inventories as unfinished goods.

NOTES TO THE CONSOLIDATED INCOME STATEMENT

Operating profit after exceptional items in the first nine months of 2013|14 was € 158.6 million (Q1–Q3 2012|13: € 202.9 million).

Net financial items amounted to a net expense of € 22.2 million (Q1–Q3 2012|13: net expense of € 21.1 million) and resulted mainly from the net interest expense (which improved) and foreign exchange losses (which increased).

After taxes, Group profit for the period was € 102.6 million (Q1–Q3 2012|13: € 138.6 million).

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT

From the beginning of March to the end of November 2013, cash and cash equivalents rose by € 11.3 million to € 155.7 million.

Operating cash flow before change in working capital was € 172.8 million, down € 46.2 million from the prior-year comparative period (Q1–Q3 2012|13: € 219.0 million). The principal driver of this movement was profit for the

period, which eased by € 36.0 million to € 102.6 million (Q1–Q3 2012|13: € 138.6 million). Working capital decreased by € 15.4 million (compared to an increase of € 75.4 million in Q1–Q3 2012|13), primarily because inventories were lower than one year earlier.

Net cash from operating activities in the first nine months of 2013|14 was € 187.1 million (Q1–Q3 2012|13: € 142.7 million).

The increased net cash used in investing activities, at € 96.8 million (Q1–Q3 2012|13: net cash used of € 90.4 million), was the result mainly of higher purchases of property, plant and equipment in the Sugar segment (especially in Hungary and Romania), in the Starch segment (notably in Austria) and in the Fruit segment (particularly in the USA).

The paying down of non-current and current borrowings by € 23.0 million, together with the dividend payment of AGRANA Beteiligungs-AG, led to a net cash outflow of € 74.4 million from financing activities (Q1–Q3 2012|13: net cash outflow of € 5.8 million).

NOTES TO THE CONSOLIDATED BALANCE SHEET

The increase of € 72.6 million in total assets since 28 February 2013 to € 2,651.0 million was attributable largely to a rise in trade receivables and other assets and an increase in trade and other payables. With total equity of € 1,238.6 million (28 February 2013 after IAS 19 restatement: € 1,211.9 million), the equity ratio at the end of November was 46.7% (28 February 2013: 47.0%).

FINANCIAL INSTRUMENTS

To hedge risks from operating and financing activities (risks related to changes in interest rates, exchange rates and commodity prices), the AGRANA Group to a limited extent uses common derivative financial instruments. Derivatives are recognised at cost at the inception of the derivative contract and are subsequently measured at fair value at every balance sheet date. Changes in value are as a rule recognised in profit or loss. Where the conditions for cash flow hedge accounting under IAS 39 are met, the unrealised changes in value are recognised directly in equity.

In the table below, the financial assets and liabilities measured at fair value are analysed by their level in the fair value hierarchy. The levels are defined as follows under IFRS 7:

█ 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.

In the reporting period no reclassifications were made between levels of the hierarchy.

Level 1 Level 2 Level 3 Total
¤000 ¤000 ¤000 ¤000
30 NOVEMBER 2013
Securities (non-current) 20,495 0 0 20,495
Investments in non-consolidated subsidiaries
and outside companies (non-current) 0 0 277 277
Derivative financial assets at fair value through equity
(hedge accounting) 0 2,526 0 2,526
Derivative financial assets at fair value through profit or loss
(held for trading) 0 1,147 0 1,147
Securities (current) 38 0 0 38
Financial assets 20,533 3,673 277 24,483

15

Level 1 Level 2 Level 3 Total
¤000 ¤000 ¤000 ¤000
Liabilities from derivatives at fair value through equity
(hedge accounting) 0 1,735 0 1,735
Liabilities from derivatives at fair value through profit or loss
(held for trading) 0 6,999 0 6,999
Financial liabilities 0 8,734 0 8,734
30 NOVEMBER 2012
Securities (non-current) 21,280 0 0 21,280
Investments in non-consolidated subsidiaries
and outside companies (non-current) 0 0 278 278
Derivative financial assets at fair value through equity
(hedge accounting) 0 8,206 0 8,206
Derivative financial assets at fair value through profit or loss
(held for trading) 0 1,100 0 1,100
Securities (current) 454 0 0 454
Financial assets 21,734 9,306 278 31,318
Liabilities from derivatives at fair value through equity
(hedge accounting) 0 152 0 152
Liabilities from derivatives at fair value through profit or loss
(held for trading) 0 9,568 0 9,568
Financial liabilities 0 9,720 0 9,720

For cash and cash equivalents, securities, trade and other receivables and trade and other payables, it can be assumed that the carrying amount is a realistic estimate of fair value.

The following table presents the carrying amounts and fair values of borrowings. The fair values of bank loans and overdrafts, other loans from non-Group entities, borrowings from affiliated companies in the Südzucker group and obligations under finance leases are measured at the present value of the payments related to the borrowings:

Carrying Fair value
amount
¤000 ¤000
30 NOVEMBER 2013
Bank loans and overdrafts, and other loans from non-Group entities 469,577 474,701
Borrowings from affiliated companies in the Südzucker group 250,000 257,835
Finance lease obligations 191 210
Borrowings 719,768 732,746
30 NOVEMBER 2012
Bank loans and overdrafts, and other loans from non-Group entities 501,106 507,160
Borrowings from affiliated companies in the Südzucker group 250,000 260,265
Finance lease obligations 198 217
Borrowings 751,304 767,642

STAFF COUNT

In the first nine months of the financial year the AGRANA Group had an average of 8,882 employees (Q1–Q3 2012|13: 8,555). An increase of about 230 positions in the Fruit segment was attributable mainly to a higher requirement for seasonal labour in Mexico and Ukraine.

RELATED PARTY DISCLOSURES

There were no material changes in related party relationships since the year-end balance sheet date of 28 February 2013. Transactions with related parties as defined in IAS 24 are conducted on arm's length terms. Details of individual related party relationships are provided in the AGRANA annual report for the year ended 28 February 2013.

SIGNIFICANT EVENTS AFTER THE INTERIM REPORTING DATE

No significant events occurred after the balance sheet date of 30 November 2013 that had a material effect on AGRANA's financial position, results of operations or cash flows.

MANAGEMENT BOARD'S RESPONSIBILITY STATEMENT

We confirm that, to the best of our knowledge:

█ the condensed consolidated interim financial statements, which have been prepared in accordance with the applicable accounting standards, give a true and fair view of the Group's financial position, results of operations and cash flows within the meaning of the Stock Exchange Act; and

█ the Group's management report for the first nine months gives a true and fair view of the financial position, results of operations and cash flows of the Group's financial position, results of operations and cash flows within the meaning of the Stock Exchange Act in relation to (1) the important events in the first half of the financial year and their effects on the condensed consolidated interim financial statements, (2) the principal risks and uncertainties for the remaining three months of the financial year, and (3) the reportable significant transactions with related parties.

Vienna, 2 January 2014

The Management Board of AGRANA Beteiligungs-AG

Johann Marihart Fritz Gattermayer Chief Executive Officer Member of the Management Board Business Strategy, Production, Quality Management, Sales, Raw Materials, Purchasing, Human Resources, Communication (including Investor Relations), and Sugar Segment Research & Development, and Starch Segment

Walter Grausam Thomas Kölbl Member of the Management Board Member of the Management Board Finance, Controlling, Treasury, Information Technology & Internal Audit Organisation, Mergers & Acquisitions, Legal, and Fruit Segment

FURTHER INFORMATION

9 May 2014 Press conference on
annual results for 2013 14
4 July 2014 Annual General Meeting for 2013 14
9 July 2014 Dividend payment and
ex-dividend date
10 July 2014 Publication of results for
first quarter of 2014 15
9 October 2014 Publication of results for
first half of 2014 15
13 January 2015 Publication of results for
first three quarters of 2014 15

19 FINANCIAL CALENDAR FOR FURTHER INFORMATION

www.agrana.com AGRANA Beteiligungs-AG
Friedrich-Wilhelm-Raiffeisen-Platz 1
1020 Vienna, Austria
Corporate Communications/Investor Relations
Hannes Haider
Phone: +43-1-211 37-12905
Fax: +43-1-211 37-12998
E-mail: [email protected]
Corporate Communications/Public Relations
Markus Simak

Phone: +43-1-211 37-12084 Fax: +43-1-211 37-12998 E-mail: [email protected]

AGRANA online annual report 2012|13

http://reports.agrana.com

This English translation of the AGRANA report is solely for readers' convenience and is not definitive. In the event of discrepancy or dispute, only the German-language version shall govern.

FORWARD-LOOKING STATEMENTS

This interim 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 interim report, and does not accept any liability in the event that assumptions and estimates prove to be incorrect.

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.

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