Nordzucker : Ready for a new era - 2017 Annual General Meeting strengthens company’s course

6 July 2017

Ready for a new era - 2017 Annual General Meeting strengthens company's course

• Dividend payment of EUR 1.10 per share • Supervisory Board and Executive Board endorsed • Supervisory Board reduced to 15 members • Exploiting growth opportunities outside Europe

Our motto 'Ready for a new era' provided the main theme of this year's Nordzucker AG Annual General Meeting. The focus was on earnings, which were significantly better than in the previous year, the company's preparations for the upcoming market changes and the elections to the Supervisory Board.

Our consistent market and customer focus and other efficiency improvements are paying off - the company is well equipped for a new era without sugar quotas and minimum beet prices.

In his speech to the Braunschweig Civic Centre, Chairman of Nordzucker AG's Supervisory Board Hans-Christian Koehler acknowledged the good earnings of the 2016/2017 financial year. 'We look back on a successful financial year that provided a suitable dividend for our shareholders.'

Touching on the upcoming period following the end of the current sugar market regime, he emphasized the importance of the company's growth strategy: 'Nordzucker is looking to the future and is well equipped to also benefit from market opportunities in growth markets outside of Europe.'

CEO Hartwig Fuchs and his fellow Executive Board members had earlier explained the earnings and the forecast for the current financial year.

Earnings significantly greater than in the previous year

In the 2016/2017 financial year, revenues rose by around six per cent compared with the previous year to EUR 1,708 million (previous year: EUR 1,607 million). The operating result (EBIT) came to EUR 131 million (previous year: EUR 16 million), while net income for the period increased to EUR 99 million (previous year: EUR 15 million). Equity went up to EUR 1,375 million (previous year: EUR 1,278 million). The equity ratio also rose further to 65 per cent (previous year: 63.5 per cent). The company remains debt-free, and its net capital investments went up significantly to EUR 308 million.

The beet cultivation was also pleasing, the result partly of a good growing year - with the second highest sugar yield in the company's history - and the advance payment of the beet price. With the new contract models, which offer a combination of one or multi-year contracts and fixed and variable prices, Nordzucker believes it is suitably equipped for the period following the quotas. Contracts in Germany for the upcoming 2018/2019 growing year are already in place. They were significantly oversubscribed. Beet has a future - demonstrated clearly by the persistently strong levels of interest. The first organic beet cultivation contracts have also been concluded.

Nordzucker plans to invest EUR 84 million in its plants in the current financial year to make further gains in efficiency, energy savings and warehousing.

Today, sustainability is a firm component of our daily business and anchored along the entire value chain. Commitment to the environment, transparency and accounting for social factors are a matter of course at Nordzucker.

In the debate about overweight and disease, sugar is in the criticism. However, sugar is not responsible as a single nutrient. Decisive is the calorie balance. Nordzucker and the associations of the German and European sugar industry are committed to providing factual information, education and nutrition education from primary school.

Outlook for 2017/2018: Maintaining earnings at the current level

When the sugar market regime expires, world market price volatility, production increases in the EU and the end of isoglucose quotas will significantly intensify the competition.

The company is holding firm to its growth strategy. 'We will grow by looking for new sources of income in other parts of the world,' explained Hartwig Fuchs to the gathered shareholders.

For the 2016/2017 financial year, Nordzucker is forecasting earnings at least at the level of the previous year.

Voting results

The Annual General Meeting confirmed the path taken by the company by endorsing the actions of the Executive Board and Supervisory Board almost unanimously.

The shareholders also approved the dividend proposal of EUR 1.10 per share by a unanimous vote. A total of EUR 53 million is to be distributed.

Upon close of the Annual General Meeting, the periods of office ended for the Supervisory Board members Gerhard Borchert, Helmut Bleckwenn, Joachim Engelke, Dr Hans-Theo Jachmann, Rainer Knackstedt, Grit Worsch, Michael Gerlif and Hans-Christian Koehler.

The following persons were re-elected to the Supervisory Board, now reduced to 15 members: Helmut Bleckwenn (grower, Garmissen), Rainer Knackstedt (grower, Dedeleben), Grit Worsch (CEO, Volksbank Osterburg-Lüchow-Dannenberg) and Hans-Christian Koehler (grower, Barum-Eppensen).

The Annual General Meeting also authorized the company to acquire treasury shares of up to ten per cent of the share capital in order to increase its own flexibility in an increasingly demanding market. The authorization can be used until 2022.

The amendment proposed by Union-Zucker Südhannover GmbH regarding the composition of the Supervisory Board was declined by a large majority.

A request for the appointment of a special auditor with regard to the cartel procedure was also rejected with 99.9 percent of the votes.

All voting details are available online:

http://www.nordzucker.de/aktionaere/aktionaere/nordzucker-ag/hauptversammlung.html

Constitutive meeting of the Supervisory Board

After the Annual General Meeting the newly elected Supervisory Board of Nordzucker AG came together for its constitutive meeting. Hans-Christian Koehler was re-elected as Chairman of the Supervisory Board, Jochen Johannes Juister was confirmed as Deputy Chairman for the shareholder representatives and Sigrun Krussmann as Deputy Chairman for the employee representatives.

Press release Ready for a new era

Background

The Nordzucker Group, based in Braunschweig, Germany, is one of the leading sugar manufacturers in Europe. The Group also processes sugar beet into bioethanol and feed. Sustainability along the entire value chain is a top priority for the company. A total of 3,200 employees and 18 production and refinery facilities across the Group ensure excellent products and services, thus providing a strong foundation for further growth.

For queries please do not hesitate to contact Tanja Schneider-Diehl via phone or mail.
Fon: [phone]
Mail: Tanja.schneider-Diehl{@}nordzucker[.]com

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