Südzucker : Südzucker AG Management report and financial statements 2020/21

MANAGEMENT REPORT AND FINANCIAL STATEMENTS SÜDZUCKER AG

DATED 28 FEBRUARY 2021 (GERMAN GAAP - HGB)

The annual report is also available in German. This translation is provided for convenience only and should not be relied upon exclusively. The German version of the annual report is definitive and takes precedence over this translation.

CONTENTS
REPORT OF THE SUPERVISORY BOARD.........................................................	1
MANAGEMENT REPORT..........................................................................	7
ABOUT THE GROUP ........................................................................................................	7
Group structure................................................................................................................................	7
Group management .........................................................................................................................	7
Business model and strategy ...........................................................................................................	9
EMPLOYEES ................................................................................................................	14
RESEARCH AND DEVELOPMENT........................................................................................	16
BUSINESS REPORT ........................................................................................................	23
General and industry-specific business conditions......................................................................	23
Legal and political environment....................................................................................................	26
Beet harvest and campaign chronology........................................................................................	28
Business performance...................................................................................................................	29
OUTLOOK..................................................................................................................	33
RISKS AND OPPORTUNITIES REPORT ..................................................................................	34
Risk management .........................................................................................................................	34
Summary of risk and opportunity situation ..................................................................................	36
Internal control and risk management system as it applies to accounting systems ....................	47
CORPORATE MANAGEMENT AND - RESPONSIBILITY...............................................................	49
Supervisory board and executive board operating procedures....................................................	49
Corporate governance report .......................................................................................................	53
Compliance ...................................................................................................................................	56
Disclosures on takeovers ..............................................................................................................	57
Separate non-financial reporting section 289b (3) HGB...............................................................	59
RECOMMENDATION ON APPROPRIATION OF PROFITS.............................................................	60
CONCLUDING DECLARATION REGARDING THE DEPENDENT COMPANY REPORT PURSUANT
TO SECION 312 (3) OF THE STOCK CORPORATION ACT (AKTG) ..............................................	60
FINANCIAL STATEMENTS ......................................................................	62
BALANCE SHEET AS OF 28 FEBRUARY 2021.......................................................................	62
INCOME STATEMENT 1 MARCH 2020 TO 28 FEBRUARY 2021 ..............................................	63
NOTES TO THE FINANCIAL STATEMENTS ............................................................................	64
Application of German GAAP (HGB) ..............................................................................................	64
Accounting policies.......................................................................................................................	64
Notes to the balance sheet ...........................................................................................................	70
Notes to the income statement ....................................................................................................	78
Other disclosures..........................................................................................................................	81
RESPONSIBILITY STATEMENT..................................................................	95
INDEPENDENT AUDITOR'S REPORT...........................................................	96

The numbers in parenthesis in the report represent the corresponding prior year´s figures or item.

Report of the supervisory board 1

REPORT OF THE SUPERVISORY BOARD

Dear shareholders,

The effects of the Corona pandemic have been shaping the way we all live and work for over a year now, as it has the supervisory board's fulfillment of its duties. We were also challenged with adapting to constantly changing regulations and conditions for meetings and working sessions, and providing the greatest possible protection against infection.

Face-to-face meetings and meetings that members physically attended were either not possible or only possible with severe restrictions. Thanks to virtual meetings, conference calls or a combination of the two, the supervisory and executive boards were able to continue to communicate.

It is evidence of the company's clear commitment

• which we all share - to protecting the health of its employees. The company immediately intro- duced appropriate protective measures and thus virtually prevented internal spreading of the virus.

All of these current challenges were successfully met. As to the challenges of the future, the company will tackle these with the new Group Strategy 2026 Plus, which together with the divisions' strategies, the executive and supervisory boards have discussed in detail.

The supervisory board continued to work on the basis of mutual trust and in the spirit of a results- oriented team with the executive board in fiscal 2020/21. In doing so, the supervisory board concentrated on the tasks for which it is responsible by law, the company's articles of association and the rules of procedure: to monitor and advise the executive board in the latter's management of the company.

The supervisory board was directly involved in all decisions of material importance affecting Südzucker Group and was continuously advised

in detail and in a timely manner on all issues related to corporate planning and further strategic development, business activities, the status and development of Südzucker Group including risk situation, as well as risk management and com- pliance.

The executive board updated the supervisory board at all ordinary meetings on the course of business as well as the company's situation. Between meeting dates, the supervisory board is regularly informed about current developments and all significant business transactions. The executive board reports were mainly updates about the company's situation and development, strat- egy, corporate policy and profits as well as Südzucker AG's and Südzucker Group's corpo- rate, treasury, investment, research and personnel budgets. In addition, the supervisory board chairman took part in executive board meetings and was informed by the CEO in several working meetings about all important business activities. Since the start of the Corona pandemic outbreak, the executive board regularly updated the supervisory board on developments, actions taken and the situation of the company.

Supervisory board meetings and decisions

The supervisory board met with the executive board at four ordinary meetings and two extraordinary meetings in fiscal 2020/21 except for the discussion of internal issues of the supervisory board. Because of the Corona pandemic, the only ordinary meeting took place on 15 July 2020, with all members in attendance. All other meetings were hybrid events - some of the supervisory members were physically present and others joined the meeting via electronic communication. In addition to the meetings, the supervisory board made one decision by written procedure.