AGRANA Beteiligungs-AG

Quarterly Report • Jul 11, 2024

INTERIM STATEMENT FOR THE FIRST QUARTER OF 2024|25

First quarter of 2024|25 at a glance

• Revenue: € 944.3 million (–2.3%; Q1 prior year: € 966.1 million)
• EBIT: € 32.3 million (–49.1%; Q1 prior year: € 63.5 million)
• EBIT margin: 3.4% (Q1 prior year: 6.6%)
• Profit for the period: € 16.1 million (–57.6%; Q1 prior year: € 38.0 million)
• Equity ratio: 46.7% (29 February 2024: 43.2%)
• Gearing ratio1 : 48.7% (29 February 2024: 51.0%)
• Number of employees (FTE)2: 9,077 (+3.2%; Q1 prior year: 8,797)

1 Ratio of net debt to total equity.

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

Contents

3	Letter from the Management Board
4 4	Group report AGRANA Group results for the first quarter of 2024 25
7	Results in each business segment
9	Management of risks and opportunities
9	Number of employees
9	Significant events after the interim reporting date
9	Outlook
11	Other information

Letter from the Management Board

Dear Investor,

Following the Group's solid operating profit (EBIT) for the full year 2023|24, which was presented at the recent Annual General Meeting on July 5, 2024, AGRANA started the 2024|25 financial year with significantly reduced EBIT of € 32.3 million for the first quarter. The significant EBIT decline was attributable mainly to lower prices for sugar and starch products. Business in the Fruit segment was better, leading to a significant increase in Fruit EBIT.

Sales volumes rose slightly overall at Group level, but some major categories, such as non-food starch products, continue to be hurt by the sluggish economy. A combination of subdued consumption and high import volumes from Ukraine is driving down prices significantly in the EU sugar market and had a corresponding negative impact on earnings. While we are pleased to have reason to expect sufficient raw material availability in the coming beet campaign in autumn 2024 thanks to the positive contracting results last winter, the generally good crop forecast in the EU for the 2024 campaign has further heightened the supply pressure. The cap of 265,000 tonnes on duty-free sugar imports from Ukraine to Europe that was adopted at EU level for the 2024 calendar year only took effect at the beginning of June 2024 and will thus only make itself felt in the European sugar market in the coming months. Good harvests are also likely in other key agricultural raw materials, like corn (maize) and wheat, not least as a result of favourable precipitation conditions in our crop-growing regions. Purchasing prices of these commodities for AGRANA should thus remain below the prior-year levels and partly offset the margin pressure that has existed since the start of the financial year in almost all starch and saccharification products.

The business trajectory in the first quarter of this financial year validates our guidance of a significant year-on-year reduction in Group EBIT for the full year 2024|25.1 In view of the once again growing challenges, especially in the Sugar segment, we will sharpen our focus on the cost side and also continue in the coming months to work hard on setting the Group's future strategic direction. Making maximum use of existing synergy potential in our Group will definitely be a key building block for successfully shaping the future.

Finally, we are happy to report that we remain on track to achieve our sustainability targets at an operational level and will reach an important milestone in sustainability reporting in this financial year by implementing the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). The implementation of these new EU requirements for financial years beginning on or after 1 January 2024 represents a significant step in our strategic advancement. Our aim is not only to produce an ESRS-compliant sustainability report (as part of the management report), but also to intensify the integration of sustainability considerations into our existing corporate structures. These measures are to help enhance the transparency of our sustainability efforts and ensure that we do justice to the rising requirements of all stakeholder groups. We also see these actions as an opportunity to strengthen our competitiveness and add value for all stakeholders and for society at large. We are confident that this greater focus on sustainability performance will contribute to AGRANA's long-term success.

The Management Board of AGRANA Beteiligungs-AG

Stephan Büttner, CEO Norbert Harringer Stephan Meeder

Group report

AGRANA Group results for the first quarter of 2024|25

Revenue and earnings

Consolidated income statement (condensed) €m, except as otherwise indicated	Q1 2024 25	Q1 2023 24	Change
Revenue	944.3	966.1	–2.3%
EBITDA1	55.8	90.6	–38.4%
Operating profit before exceptional items and results
of equity-accounted joint ventures	30.0	64.9	–53.8%
Share of results of equity-accounted joint ventures	2.1	(1.8)	216.7%
Exceptional items	0.2	0.4	–50.0%
Operating profit (EBIT)	32.3	63.5	–49.1%
EBIT margin	3.4%	6.6%	–3.2pp
Net financial items	(9.2)	(13.3)	30.8%
Profit before tax	23.1	50.2	–54.0%
Income tax expense	(7.0)	(12.2)	42.6%
Profit for the period	16.1	38.0	–57.6%
Attributable to shareholders of the parent	15.3	36.1	–57.6%
Earnings per share (€)	0.24	0.58	–58.6%

In the financial first quarter of 2024|25 (the three months ended 31 May 2024), revenue of the AGRANA Group was € 944.3 million, a slight decrease from the same quarter one year earlier due to lower prices in all business segments and despite higher sales volumes.

Operating profit (EBIT) was € 32.3 million in the first quarter of 2024|25, a significant reduction from the yearago level of € 63.5 million. EBIT in the Fruit segment grew to € 27.0 million (Q1 prior year: € 24.4 million) thanks to a better performance in the fruit juice preparations activities. Meanwhile, weaker margins on starch and saccharification products drove a very significant decrease in Starch segment EBIT to € 9.4 million (Q1 prior year: € 22.1 million). In the Sugar segment, lower selling

prices were the reason for a deterioration in the EBIT result to a deficit of € 4.1 million (Q1 prior year: profit of € 17.0 million). The Group's net financial items amounted to an expense of € 9.2 million, down from an expense of € 13.3 million in the year-earlier period, thanks primarily to a strong improvement in currency translation differences that outweighed a minimally higher net interest expense. After an income tax expense of € 7.0 million, corresponding to a tax rate of 30.3% (Q1 prior year: 24.3%), the Group's profit for the period was € 16.1 million (Q1 prior year: € 38.0 million). Earnings per share attributable to AGRANA shareholders decreased to € 0.24 (Q1 prior year: € 0.58).

Investment1

In the first quarter of the 2024|25 financial year, AGRANA invested € 18.4 million, or € 2.9 million more than in the year-earlier comparative period. Capital expenditure by segment was as follows:

Investment1 €m, except %	Q1 2024 25	Q1 2023 24	Change
Fruit segment	9.0	6.4	40.6%
Starch segment	4.7	4.4	6.8%
Sugar segment	4.7	4.7	0.0%
Group	18.4	15.5	18.7%

In addition to regular projects for product quality and energy efficiency improvement and for asset replacement and maintenance across all production sites, the following individual investments made are worthy of note:

Fruit segment

• Capacity expansion in Jacona, Mexico
• Expansion of the food service area in Centerville, Tennessee, USA
• Emission reduction projects at the sites in Brazil, South Africa and Poland

Starch segment

• Increase of production capacity for drum-dried, nonfood specialty starches in Gmünd, Austria
• Expansion of the wastewater treatment plant in Gmünd
• Optimisation of the water supply in Aschach, Austria

Sugar segment

• Optimisation of the evaporator stations in Roman, Romania, and in Kaposvár, Hungary
• Conversion of the fuel supply from coal to natural gas in Opava, Czech Republic

Additionally in the first quarter of 2024|25, € 7.4 million (Q1 prior year: € 5.4 million) was invested in the equityaccounted joint ventures (the HUNGRANA and STUDEN groups and Beta Pura GmbH; these values for joint ventures are not stated at AGRANA's share but at 100% of the totals).

Cash flow

Consolidated cash flow statement (condensed)	Q1 2024 25	Q1 2023 24	Change
€m, except %
Operating cash flow before changes in working capital	63.7	98.5	–35.3%
Changes in working capital	(33.2)	(182.6)	81.8%
Interest received and paid and income tax paid, net	(4.1)	(7.0)	41.4%
Net cash from/(used in) operating activities	26.4	(91.1)	129.0%
Net cash (used in) investing activities	(16.2)	(15.2)	–6.6%
Net cash from financing activities	11.7	121.8	–90.4%
Net increase in cash and cash equivalents	21.9	15.5	41.3%
Effects of movement in foreign exchange rates and
of IAS 29 on cash and cash equivalents	(0.3)	(8.4)	96.4%
Cash and cash equivalents at beginning of period	88.1	118.3	–25.5%
Cash and cash equivalents at end of period	109.7	125.4	–12.5%

The amount of the item "operating cash flow before changes in working capital" fell to € 63.7 million in the first quarter of 2024|25 (Q1 prior year: € 98.5 million) as a result mainly of the much lower profit for the period. After a far smaller increase of € 33.2 million in working capital than in the year-earlier period (Q1 prior year: increase of € 182.6 million), net cash from operating activities in the first quarter of 2024|25 was € 26.4 million (Q1 prior year: net cash use of € 91.1 million in operating activities). Net cash used in investing activities rose to € 16.2 million (Q1 prior year: net cash use of € 15.2 million) as a consequence of higher payments for purchases of property, plant and equipment and intangibles. A smaller increase in borrowings compared to the year before led to a lower net cash inflow of € 11.7 million from financing activities (Q1 prior year: net inflow of € 121.8 million).

Financial position

Consolidated balance sheet (condensed)	31 May 2024	29 February 2024	Change
€m, except % and pp
ASSETS
Non-current assets	1,032.8	1,031.2	0.2%
Of which intangible assets, including goodwill	112.8	112.4	0.4%
Of which property, plant and equipment	794.1	797.6	–0.4%
Current assets	1,719.8	1,858.2	–7.4%
Of which inventories	988.4	1,170.8	–15.6%
Of which trade receivables	506.6	441.9	14.6%
Of which cash and cash equivalents	109.7	88.1	24.5%
Total assets	2,752.6	2,889.4	–4.7%

EQUITY AND LIABILITIES

Equity	1,286.3	1,248.4	3.0%
Equity attributable to shareholders of the parent	1,223.8	1,186.7	3.1%
Non-controlling interests	62.5	61.7	1.3%
Non-current liabilities	615.6	628.7	–2.1%
Of which borrowings	521.3	523.6	–0.4%
Current liabilities	850.7	1,012.3	–16.0%
Of which borrowings	233.8	218.8	6.9%
Of which trade payables	374.4	561.6	–33.3%
Total equity and liabilities	2,752.6	2,889.4	–4.7%

Net debt	626.4	636.1	–1.5%
Gearing ratio1	48.7%	51.0%	–2.3pp
Equity ratio	46.7%	43.2%	3.5pp

Total assets, at € 2,752.6 million as of 31 May 2024, were down slightly from the 2023|24 year-end balance sheet date, and the equity ratio was 46.7% (29 February 2024: 43.2%). The amount of non-current assets was virtually constant at € 1,032.8 million. Current assets, at € 1,719.8 million, decreased moderately, with inventories reduced while trade receivables increased. Non-current liabilities eased marginally to € 615.6 million. Current liabilities declined considerably on balance to € 850.7 million, as a moderate increase in short-term borrowings coincided with a significant reduction in trade payables. Net debt as of 31 May 2024 stood at € 626.4 million, a decrease of € 9.7 million from the year-end level of 29 February 2024. The gearing ratio at the quarterly balance sheet date was 48.7% (29 February 2024: 51.0%).

Uncertainty in assumptions and judgements arises from a volatile market environment with regard to the costs of raw materials, energy, transport and other expense items. In addition, macroeconomic conditions are characterised by high interest rates and still-elevated inflation whose trajectories going forward are unclear.

Results in each business segment

Fruit segment

	Q1 2024 25	Q1 2023 24	Change
Fruit segment €m, except % and pp
Revenue	415.6	401.1	3.6%
EBITDA1	35.8	34.0	5.3%
Operating profit before exceptional items and results
of equity-accounted joint ventures	26.8	24.4	9.8%
Exceptional items	0.2	0.0	-
Operating profit (EBIT)	27.0	24.4	10.7%
EBIT margin	6.5%	6.1%	0.4pp

Fruit segment revenue in the first quarter of 2024|25 was € 415.6 million, somewhat above the year-earlier level. The revenue increase occurred both in the fruit preparations and fruit juice concentrate businesses and resulted from volume growth.

EBIT of the segment as a whole grew to € 27.0 million in the first three months of the financial year (Q1 prior year: € 24.4 million). In the fruit preparations activities, EBIT was significantly above the year-ago level. The improvement was attributable especially to a positive business performance in the Europe region (including Ukraine), in Mexico and in Russia. The fruit juice concentrate operations also achieved good EBIT, although not matching the very strong result of the previous year's first quarter.

Starch segment

	Q1 2024 25	Q1 2023 24	Change
Starch segment
€m, except % and pp
Revenue	265.5	317.1	–16.3%
EBITDA1	17.5	34.6	–49.4%
Operating profit before exceptional items and results
of equity-accounted joint ventures	6.1	23.4	–73.9%
Share of results of equity-accounted joint ventures	3.3	(1.3)	353.8%
Operating profit (EBIT)	9.4	22.1	–57.5%
EBIT margin	3.5%	7.0%	–3.5pp

Revenue in the Starch segment in the first quarter of 2024|25 was € 265.5 million, a level significantly below that of the year-earlier comparative period, in which the war in Ukraine had led to powerful increases in market prices. Owing to a decline in raw material and energy prices, market prices for the segment's products retreated noticeably, which impacted the selling prices obtained for the entire Starch portfolio. Ethanol sales prices, for instance, fell by about 25% amid a substantial drop in Platts prices.

At € 9.4 million, EBIT in the Starch segment was down very significantly year-on-year. A key reason for this was the margin decline in starch and saccharification products driven by significantly lower selling prices for core and byproducts. For example, the sales price for conventional vital gluten decreased by approximately 40%. As a result of reduced raw material and energy prices, the ethanol business improved its EBIT despite selling its product at lower prices. The equity-accounted HUNGRANA Group was a positive contributor to segment EBIT again, with a profit share for AGRANA of € 3.3 million (Q1 prior year: loss of € 1.3 million); capacity utilisation in this Hungarian joint venture improved as a result of the fall in raw material and energy prices.

Sugar segment

	Q1 2024 25	Q1 2023 24	Change
Sugar segment
€m, except % and pp
Revenue	263.2	247.9	6.2%
EBITDA1	2.5	22.0	–88.6%
Operating (loss)/profit before exceptional items and results
of equity-accounted joint ventures	(2.9)	17.1	–117.0%
Share of results of equity-accounted joint ventures	(1.2)	(0.5)	–140.0%
Exceptional items	0.0	0.4	–100.0 %
Operating (loss)/profit [EBIT]	(4.1)	17.0	–124.1%
EBIT margin	(1.6%)	6.9%	–8.5pp

The Sugar segment's revenue in the first quarter of 2024|25 was up moderately year-on-year to € 263.2 million. The negative effect of fallen sugar sales prices was more than made up for by higher sales volumes. The trajectory of the sugar market was most recently driven by the sugar imports from Ukraine and the expectation of increased EU sugar production in the 2024|25 campaign.

The Sugar EBIT result in the first quarter of 2024|25 was a deficit of € 4.1 million, a pronounced deterioration from the year-earlier period. This reflected especially the significant fall in sugar sales prices, which was steepest in the regions heavily affected by the imports of Ukrainian sugar. The earnings result of joint ventures too was lower than in the yearago quarter; it is determined in large part by the sugar activities of the AGRANA-STUDEN group in Southeastern Europe

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 currently no known risks to the AGRANA Group's ability to continue as a going concern and no future risks of this nature are discernible at present.

A detailed description of the Group's business risks is provided on pages 104 to 114 of the annual report 2023|24.

Number of employees

Average full-time equivalents	Q1 2024 25	Q1 2023 24	Change
Fruit segment	6,085	5,844	4.1%
Starch segment	1,163	1,154	0.8%
Sugar segment	1,829	1,799	1.7%
Group	9,077	8,797	3.2%

In the first quarter of 2024|25 the AGRANA Group employed an average of 9,077 full-time equivalents (Q1 prior year: 8,797).

Significant events after the interim reporting date

No significant events occurred after the interim balance sheet date of 31 May 2024 that had a material effect on AGRANA's financial position, results of operations or cash flows.

Outlook

AGRANA Group €m	2023 24 Actual	2024 25 Forecast
Revenue	3,786.9	
EBIT	151.0	
Investment1	127.3	120

Moderate reduction 2

Significant reduction 2

At Group level for the full 2024|25 financial year, AGRANA expects a significant decrease in operating profit (EBIT). Group revenue is projected to show a moderate reduction.

EBIT for the second quarter of this financial year is expected to represent a halving of the year-earlier quarter's figure, which was € 47.4 million.

Fruit segment €m	2023 24 Actual	2024 25 Forecast
Revenue	1,566.9	
EBIT	60.2	
Investment1	50.8	56

Steady 2

Significant increase 2

For the 2024|25 financial year in the Fruit segment, AGRANA is forecasting a significant improvement in EBIT on steady revenue. Within this segment, the fruit preparations business expects a slight price-related decline in revenue on stable volumes. Its EBIT should improve significantly in 2024|25 due to the base effect of the non-recurring 2023|24 asset impairment in Asia. In the fruit juice concentrate activities, revenue for the new financial year is predicted to rise from last year. In view of the sales contracts closed to date for product from the 2023 crop, the earnings situation in the concentrate business in 2024|25 is expected to remain solid.

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

² These quantitative terms as used in this Outlook section are defined as specific ranges of percentage change; see the definitions on page 12.

Starch segment €m	2023 24 Actual	2024 25 Forecast
Revenue	1,148.7	
EBIT	50.4	
Investment1	42.1	34

Moderate reduction 2

Significant reduction 2

For the Starch segment, a moderate decrease in revenue is forecast for the 2024|25 financial year, driven by a continuing decline in selling prices. It is anticipated that purchase prices and production costs will not fall to the same extent as sales prices. Although projects to further increase efficiency and reduce costs through process optimisation have been initiated, EBIT is therefore expected to be significantly lower than in the year before.

Sugar segment €m	2023 24 Actual	2024 25 Forecast
Revenue	1,071.3	
EBIT	40.4	
Investment1	34.4	30

Significant reduction 2

Very significant reduction 2

In the Sugar segment, AGRANA is projecting a pricedriven, significant revenue reduction in 2024|25. The segment is budgeting slightly higher sales volumes, but declining prices. Additional competition from Ukraine in the EU deficit countries, high contracted acreages for beet planting and the expectation of good yields in the 2024|25 campaign add up to potentially high sugar stocks and thus to growing downward pressure on prices. Despite lower energy expenses, EBIT is therefore expected to decrease very significantly year-on-year.

Forecast uncertainty and assumptions

The war in Ukraine, which has been underway since the beginning of the 2022|23 financial year, broadly led to an increase in the already high volatility in sales markets and fuelled price hikes in procurement markets, notably for raw materials and energy. In addition, the fact that agricultural imports from Ukraine are granted preferential access could cause further market disruption in the EU. Despite the current reduction in volatility, it is difficult to assess the economic and financial impacts, the security of supply, and the duration of this temporary exceptional situation.

Investment

Total investment across the three business segments in the 2024|25 financial year, at approximately € 120 million, is expected to be moderately below the 2023|24 value and merely in line with the budgeted depreciation of about € 120 million. Around 12% of this capital expenditure will be for emission reduction measures in the Group's own production operations, under the AGRANA climate strategy.

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

2 These quantitative terms as used in this Outlook section are defined as specific ranges of percentage change; see the definitions on page 12.

1

Other information

Financial calendar

15 July 2024	Dividend payment date
10 October 2024	Results for first half of 2024 25
14 January 2025	Results for first three quarters of 2024 25

Contacts

AGRANA Beteiligungs-AG

Friedrich-Wilhelm-Raiffeisen-Platz 1 1020 Vienna, Austria www.agrana.com/en

Investor Relations

Hannes Haider Phone: +43-1-211 37-12905 Fax: +43-1-211 37-12926 Email: investor.relations@agrana.com

Corporate Communications/Public Relations

Markus Simak Phone: +43-1-211 37-12084 Fax: +43-1-211 37-12926 Email: info.ab@agrana.com

Interim statement for the first quarter of 2024|25

Published 11 July 2024 by AGRANA Beteiligungs-AG Friedrich-Wilhelm-Raiffeisen-Platz 1 1020 Vienna, Austria

Forward-looking statements

This interim statement 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 statement, 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		0% up to +1%, or 0% up to –1%
Slight(ly)	 or 	More than +1% and up to +5%, or more than –1% and up to –5%
Moderate(ly)	 or 	More than +5% and up to +10%, or more than –5% and up to –10%
Significant(ly)	 or 	More than +10% and up to +50%, or more than –10% and up to –50%
Very significant(ly)	 or 	More than +50% or more than –50%

This interim statement has not been audited or reviewed. It was prepared by the Management Board of AGRANA Beteiligungs-AG on 1 July 2024.

For financial performance indicators not defined in a footnote, please see the definitions on page 224 of the annual report 2023|24.

AGRANA strives to use gender-inclusive language in all its internal and external written documents, including in this interim statement. To ensure readability, this document may occasionally employ language that does not explicitly reflect all gender identities. However, any gender-specific references should be understood to include all genders, as appropriate to the context.

As a result of the standard round-half-up convention used in rounding individual amounts and percentages, this interim statement may contain minor, immaterial rounding errors. No liability is assumed for misprints, typographical and similar errors.

This English translation of the interim statement is solely for readers' convenience and is not definitive. In the event of discrepancies or disputes, the German version shall govern.