Nordzucker_GB 03-04_E_.pd 1 - Nordzucker AG

Annual Report 2003/2004 

Nordzucker AG

Corporate Structure and Locations 

Nordzucker AG 

Nordzucker GmbH & Co. KG, 

Braunschweig/Germany 

100% 

Nordzucker InnoCenter GmbH, 


100% 

Sugar International 

Wielkopolski Cukier S.A., 

Opalenica/Poland 

99,65% 

Pomorski Cukier S.A., 

Chelmza/Poland 

99,71% 

Business Development 

Nordzucker Spezial GmbH, 


100% 

SweetGredients GmbH & 

Co. KG, Nordstemmen/ 

Germany 50% 

Považský Cukor a.s., 

Trencianska Teplá/Slowakia 

95,20% 

Syral S.A., 

Marckolsheim/France 

50% 

Güstrow 

Szolnoki Cukorgyár Rt., 

Szolnok/Hungary 

98,10% 

Mátravidéki Cukorgyárak Rt., 

Hatvan/Hungary 

94,98% 

Szerencsi Cukorgyár Rt., 

Szerencs/Hungary 

92,79% 

Cukrovary TTD a.s., 

Dobrovice/Czech Republic 

33,54% 

Chelmza 

NPE Natur Pharma 

Ernährungsprodukte GmbH, 

Bielefeld/Germany 98% 

Anton Hübner 

GmbH & Co. KG, 

Ehrenkirchen/Germany 100% 

Medopharm Arzneimittel 

GmbH & Co. KG, 

Freiburg i. Br./Germany 100% 

Norddeutsche Zucker-Raffinerie 

GmbH, 

Frellstedt/Germany 50% 

Uelzen 

Warsaw 

Clauen 

Berlin 

Wierthe 

Munzel 

Braunschweig 

Klein Wanzleben 

Nordstemmen 

Schladen 

Germany 

Amino – 

Frellstedt 

esparma – 

Osterweddingen 

Dobrovice* 

Opalenica POLAND 

Ceské Meziřici* 

^ 

Prague 

CZECH REPUBLIC 

Trencianska Teplá 

^ 

Amino GmbH, 

Frellstedt/Germany 

50% 

esparma GmbH, 

Osterweddingen/Germany 

100% 

S.A. Bioproducts Ltd., 

Durban/South Africa 

40% 

Trnava 

SLOWAKIA 

Syral – 

Marckolsheim 

Bratislava 

FRANCE 

Hübner-Medopharm – 

Ehrenkirchen 

Budapest 

Szerencs 

Szolnok 

as May 2004 

HUNGARY 

*not consolidated

The Group at a Glance 

1997/1998 

1998/1999 

1999/2000 

2000/2001 

2001/2002 

2002/2003 

2003/2004 

Sales, including market regulation levies 

tm 

984 

1,023 

1,007 

1,073 

1,184 

1,146 

1,254 

Depreciation of property, plant and equipment 

tm 

92 

91 

85 

87 

83 

77 

86 

Staff costs 

tm 

104 

110 

100 

121 

125 

127 

141 

Research expenditures 

tm 

1 

1 

2 

3 

3 

4 

4 

Earnings before interest and taxes (EBIT) 

tm 

19 

45 

44 

75 

99 

66 

62 

Net consolidated income 

tm 

9 

21 

22 

36 

55 

26 

23 

Cashflow (DVFA) 

tm 

80 

138 

75 

83 

148 

100 

107 

Equity capital 

tm 

251 

269 

301 

262 

300 

296 

330 

Balance sheet total 

tm 

1,052 

1,042 

1,026 

1,118 

1,108 

1,023 

1,125 

Investment in property, plant and equipment 

tm 

42 

52 

78 

67 

54 

65 

65 

Staff on annual average (Sec. 267 Commercial Code) 

1,956 

1,908 

1,994 

3,939 

4,052 

3,475 

3,758 

Beet farmers 

12,018 

11,561 

13,548 

18,504 

17,081 

16,466 

17,028 

Beet processing 

hectares 

165,425 

161,388 

181,142 

180,895 

180,117 

201,658 

208,882 

Sugar beet cultivation 

tonnes/day 

101,237 

100,939 

104,786 

113,614 

107,425 

120,958 

131,307 

Sugar production 

Factories 

m tonnes white 

sugar values 

1.39 

11 

1.33 

11 

1.45 

15 

1.51 

17 

1.33 

16 

1.49 

19 

1.70 

17 

Financial Year in Key Words 

• Good campaign and second best operating result in Nordzucker AG history 

• Positive operating results in Slovakia and the Czech Republic 

• Successful consolidation of Hübner-Medopharm and Syral S.A. 

• Pilot production of Tagatose in Nordstemmen 

• Closure of the Schleswig plant after the 2003 campaign 

• Integration of sugar sales 

• Further developments in the organisation structure 

• First capital increase from the authorised capital of 2002

Nordzucker 

The Nordzucker group, one of the major producers of foodstuffs in the European 

Union, together with its beet farmers are reliable suppliers of sugar and other 

sweeteners, as well as products that are, in particular, intended for the feed industry. 

Constant expansion of the Nordzucker product and service portfolio and the 

required adjustment of all business activities to the expectations of industry and trade, 

as well as those of the consumer, offer shareholders attractive returns on their invested 

capital and farmers fair payment for their beets. 

All operational activities are strictly focused on the specific requirements and expectations 

of external and internal customers, supported by Nordzucker’s integrated 

processes and a creative and flexible workforce. The criteria against which compliance 

with these requirements are measured are reliability, speed and the costs involved. 

The guiding principles for each employee are the achievement of reasonable and 

long-term profits, the continuous generation of internal growth, and an increase of the 

company’s market shares in its sphere of business. 

The German Corporate Governance Code as well as compliance with all relevant 

laws and regulations, a high level of food and feed quality and safety, responsible utilisation 

of resources, continuous reduction and prevention of environmental pollution, 

industrial safety and health protection are all integral elements of Nordzucker’s activities. 

Error prevention and avoidance are in this context given particular priority. 

The management assesses and evaluates all business activities as well as corporate 

efficiency on a regular basis to initiate the required adjustments and thus safeguard 

customer and shareholder satisfaction. The supervisory board surveys the operating 

results and progress of business activities at defined intervals. 

A qualified, highly committed and motivated workforce, which is paid on the 

basis of performance, is the sound basis for a continuous improvement of all business 

operations and the long-term and systematic development of the company within a 

changing competitive situation.

Wir machen mehr daraus 

Managing Board Nordzucker AG (from left to right): Jens Fokuhl, Günter Jakobiak, Dr. Ulrich Nöhle 

Contents 

2 Foreword 6 Report of the Supervisory Board 10 Management Report 

36 Annual Financial Statement 61 Committees 65 Glossary 

Nordzucker 2003/2004 1

Foreword 

Dr. Ulrich Nöhle, chairman of the 

Managing Board Nordzucker AG 

Despite a number of changes within the 

company itself, the extreme summer 

drought and intensive discussions on the 

sugar market regulations, the past financial 

year was a highly successful one for 

Nordzucker AG. 

The period under review started with 

the merger with Union-Zucker Südhannover 

GmbH. The integration of the 

Nordstemmen plant went according to 

schedule. This included internally reorganising 

the sugar distribution department 

from Nordzucker GmbH & Co KG 

to Nordzucker AG and carrying out a 

number of other changes required under 

company law. 

The decision to close down the 

Schleswig plant was taken in March. 

Naturally, this was accompanied by 

strong reactions of those immediately 

affected. The ensuing discussion primarily 

centred around the understandable questions 

of “how” and “why us, and why 

now”. The closure of this plant, the 21st 

closure within Nordzucker’s catchment 

area since 1990, was consistent with our 

underlying aim of continuously seeking 

to increase our competitiveness. 

Drilling in April proceeded under 

optimal weather conditions, and the beet 

seeds emerged well. With temperatures 

souring above 30 degrees centigrade for 

many weeks between May and August, 

grain growers experienced serious harvesting 

losses. Our beet farmers were 

watching “dormant” beet stands with 

growing concerns, while Nordzucker was 

preparing 17 sugar factories across 

Europe for the forthcoming campaign. 

The fact that high environmental standards 

are not just empty words for 

Nordzucker but are actually evident in 

our daily practice, is vividly demonstrated 

by the installation of the new steam dryer 

at the Clauen factory. Following Uelzen, 

Klein Wanzleben and Güstrow, this is the 

fourth plant which Nordzucker has 

equipped with this cost and resources 

saving technology. 

Following a number of heavy rainfalls 

in September, the campaign started on 

22 September a week later than originally 

planned. The results of some trial digging 

seemed at first difficult to believe, but it 

appears that the sugar beet is not only 

prominent because of its relative excellence 

compared to other arable crops; it 

is evidently also tolerant to heat. Beet 

and sugar yields showed highly pleasing 

results – a fact nobody would have dared 

to predict in the wake of the hot and dry 

summer. 

In the north of Germany, five factories 

ended their campaign just before Christmas 

with four factories completing theirs 

shortly after. I would like to take this 

opportunity to extend my personal and 

sincere thanks to the staff of the 

Schleswig factory for remaining fully 

committed to the very last day of the 

campaign, a campaign which ended 

without accident. In what must be an 

unfortunate twist of fate, this was the 

best campaign ever in the history of the 

2

Schleswig plant. Good beet qualities in 

all the factories, no technical problems, 

and relatively low declassification are the 

key factors that brought about the second 

best operating results Nordzucker 

AG has ever experienced. 

With the US dollar remaining weak, 

the world market price for sugar intensified 

its downward trend, implying low 

C-sugar yields. In Poland, however, we 

were clearly able to reduce losses, despite 

an equally negative trend in local sugar 

market prices. Outside the sugar sector, 

all our operating interests were in the 

black. 

Internally, there were also changes 

and achievements. In October, our quality 

and environmental management system 

was re-certified successfully and without 

any deviations in accordance with 

ISO 9001 and 14001. All in all this can be 

chalked up as sound affirmation of the 

high level of compliance we display with 

the requirements made on our products, 

on the systems and on the environment. 

Having carefully weighed up potential 

advantages and anticipated possible 

returns, our plans for the construction of 

a bioethanol plant were suspended at the 

end of 2003 for the foreseeable future. 

This now allows us to fully concentrate 

our efforts on the expansion of our core 

activities and competence in sweetening 

products. Our customers are calling for 

this orientation. It is in their laboratories 

that the foodstuffs for tomorrow’s markets 

are being produced. Thanks to the 

work of the Nordzucker expert teams 

constituted to provide product and technological 

support to our customers in 

industry, the development and distribution 

of new household sugar specialities, 

as well as the systematic intensification of 

our customer relations, we unswervingly 

sustained our course along this path in 

2003. 

Intensified external customer orientation, 

clear and process-oriented internal 

procedures and a staff leadership oriented 

towards measurable targets – all these 

elements in conjunction with a moderate 

and socially compatible streamlining of 

the workforce – also at Nordzucker headquarters 

– will strengthen our concentration 

on the essential business operations 

and ultimately our competitiveness. More 

than ever before, our actions are guided 

by the principles of reliability, speed 

and costs coupled with the challenges of 

creativity and flexibility. 

On 23 September 2003, the EU Commission’s 

so-called “options paper” on 

the proposed reforms of the sugar market 

regulations appeared in the Internet. 

The Commission’s intention of triggering 

a far-reaching discussion of the sugar 

market regulations and possible reforms 

was initiated. In the light of a predicted 

loss of at least 70,000 jobs in the EU 

sugar industry, accompanied by a 

37-percent drop in sugar prices, justified 

criticism was quickly voiced. It soon 

became clear that not only the European 

sugar industry would lose out on the 

pure price markdown-based alternative. 

Countries originally intended to profit 


Foreword 

World sugar production and share of sugar traded 

on the world market (in m. tonnes raw sugar values) 

150 

100 

World market exports based on origin 

(in m. tonnes raw sugar values) 

30 

20 

10 

50 

Beet and cane sugar production 

(worldwide in m. tonnes raw sugar values) 

0 

350 

250 

0 

1994 1996 

150. 

0 

1985 

Beet sugar 

39 

1990 

2002 

1995 2000 2002 

World market prices for sugar 1994 – 2004 

Cane sugar 


World sugar 

production 

Of which, 

sugar 

traded on 

world 

market 

1998 2000 2002 

Sugar traded on the 

world market 

Austraia 

Thailand 

Brazil 

EU 

White Sugar G/t fob 

White Sugar $/t fob 

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 

from a liberalised world trade would 

suffer similar market irritations, and the 

ACP and LDC countries soon started to 

call for “adequate EU sugar prices”. By 

March 2004 at the latest all sides saw 

that it would be difficult to implement 

the price markdown option favoured by 

the Commission. Now, the option “quotas 

for all” is up for discussion. Although 

mentioned in the original Commission 

paper, the Commission itself had not 

given serious thought to this option up 

to that point. 

However, it soon turned out that the 

option “quotas for all at acceptable 

prices” has aroused the lasciviousness of 

all players in the world sugar market. 

ACP, LDC, Mercosur, the producers of 

isoglucose, as well as Balkan countries are 

trying either to maintain or expand their 

quotas. Furthermore, Brazil, Thailand and 

Australia, who as the largest producers of 

surplus sugar are not entitled to any quotas, 

have brought an action before the 

WTO expressing doubt on the compatibility 

of European re-exports of ACP sugar 

and C-sugar exports with the principles 

of the WTO. 

It is as yet difficult to foresee the outcome 

of these discussions. The risk that 

“region-wide quota concessions to all” 

may herald the end of sugar beet cultivation 

in Europe is clearly evident for everyone. 

However, this is something nobody 

– not even the most adamant critics of 

the market regulations – really wants. 

Sources: White Sugar Exchange, London; International Sugar Organisation (ISO) 

4

In talks in recent months with politicians 

of the European Parliament, as well 

as with members of the Bundestag and 

Land Parliaments, we have expressed our 

concerns that the sugar market regulations 

may be abandoned all too easily. All 

political parties have made it quite clear 

that they fully appreciated our position. 

We are determined to continue to use all 

our arguments in favour of maintaining 

sugar beet cultivation in the EU, and we 

will defend our interests in a matter-offact 

and politically adequate manner, 

which is exactly what the other sugar 

producers outside the EU are doing: protecting 

their own interests. However, it is 

not only important to stave off superficial 

financial interests, but to call on the other 

sugar producing countries to gradually 

introduce comparable social and environmental 

standards. 

Nevertheless, we should not harbour 

any illusions as to the long-term 

prospects: even though it may be a very 

slow process, the world market will be 

deregulated step by step. More and more 

tariff and non-tariff trade barriers will 

come down, and we will have to face the 

challenge of increasing competition. 

For all of us – beet farmers and sugar 

producers alike – this can only mean that 

we must have the best seed stock, the 

most efficient methods of cultivation, the 

most rational harvesting and the bestpriced 

sugar production methods, but 

also that we meet our customers’ 

requirements on time, quantity, true to 

specifications and at low cost. Our beet 

farmers as well as our staff have to be 

well trained and as competent in their 

jobs as possible. In their actions and 

thoughts they have to be forward looking 

and goal-oriented, they need to be 

able to react flexibly 

and on constant lookout for alternatives. 

Then – and only then – will there 

be no need for us to be concerned at all 

about an increasingly liberalised world 

market. 

This is what will guide our joint 

efforts! Supported by the full commitment 

of our staff and the confidence of 

our shareholders, we will continue to 

successfully nurture Nordzucker along 

this path. 


Report of the Supervisory Board 

The financial year 2003/2004 was 

characterized by an ongoing discussion 

of the changes taking place in EU 

agricultural policy, and, in particular, by 

the decision to close down the Schleswig 

factory at the end of the 2003 campaign, 

and also by the bioethanol decision. 

In the period under review, Goetz 

von Engelbrechten vacated his position 

on the Nordzucker AG managing board, 

which he had chaired for many years, 

and assumed his new function in the 

company’s supervisory board. The 

Nordzucker AG supervisory board is greatly 

obliged to Goetz von Engelbrechten, 

who is credited for having developed 

Nordzucker AG from an important 

regional sugar producer to the second 

largest group in Europe with global activities. 

His successor to the post of the 

chairman of the Nordzucker AG managing 

board, Dr. Ulrich Nöhle, took office 

on 5 September 2003. The supervisory 

board is convinced that with the joint 

efforts of Dr. Ulrich Nöhle and his colleagues 

on the managing board, 

Nordzucker AG will continue to develop 

for the common good of its shareholders, 

and in particular the beet growing farmers 

and its staff. 

In a total of nine meetings, the supervisory 

board was informed of the business 

and strategic development of 

Nordzucker AG, as well as of any major 

events and transactions. The supervisory 

board members exercised their advisory 

functions for the Nordzucker AG managing 

board and their supervisory functions 

for the company’s management. In this 

regard it was provided with regular and 

detailed information on the corporate 

and business policy, corporate strategy, 

company management, as well as the 

financial development of Nordzucker AG 

and transactions of major importance by 

the Nordzucker AG managing board. All 

matters subject to the approval of the 

supervisory board were submitted to the 

board for its decision. 

The supervisory board members were 

in a process of constant deliberation on 

the options presented by the EU commission 

for reform of the European sugar 

market regulations, as well as the consequences 

the current WTO negotiations 

may entail for the north German sugar 

industry. The supervisory board fully 

endorses the aim put forward by the 

managing board of maintaining the competitive 

strength of Nordzucker AG in an 

evolving market. Concentration on sugar 

as our core activity, and the expansion of 

this core activity, our competence in the 

sweetening sector, including the production 

of alternative sweeteners, as well as a 

strict expenses discipline, were elements 

that were discussed in detail. All corporate 

efforts are directed at safeguarding, 

and increasing, the earning power of our 

company on a long-term basis. 

The supervisory board intensively 

discussed the factory structure. The most 

decisive resolution adopted in the year 

under review was the one concerning the 

closure of the Schleswig plant after the 

2003 campaign. At the same time it was 

pointed out that no further closures are 

intended up to, and including, the 2005 

campaign. One board member had 

brought an action before the regional 

court of Braunschweig, appealing against 

the resolution of the board of 19 March 

2003 to close the factory. Additional 

6

information furnished by the managing 

board dispelled any doubts that had 

persisted among the supervisory board 

members, and the action was dropped. 

In August, the bioethanol issue was 

up for intensive discussion at two supervisory 

board meetings. Having carefully 

weighed up all aspects, the supervisory 

board spoke against the construction of 

a bioethanol plant. 

In line with its rotational policy, the 

supervisory board dealt with the 

Nordzucker AG investment programme. 

A matter of special deliberation was our 

commitment in eastern Europe. The 

supervisory board called an extraordinary 

meeting, at which the managing board 

presented detailed background information 

on the losses incurred in Poland. In 

addition, the supervisory board visited 

the Hungarian sugar factory of Szerencs to 

obtain first-hand impressions of operation. 

The compliance declaration under the 

German Corporate Governance Code has 

been revised by the managing and supervisory 

boards for agreement with the 

latest version of that code. For details of 

the Nordzucker compliance declaration 

of 24 February 2004, reference is made to 

www.nordzucker.de/info/compliance as 

well as to page 58 of this annual report. 

At the beginning of the year 2004, 

the German supervisory board agency 

(Deutsche Agentur für Aufsichtsräte) in 

Berlin, was commissioned to review the 

efficiency of the work done by the supervisory 

board. In his report, the examiner 

noted: “The business management 

and supervision of Nordzucker AG are 

directed at safeguarding the core activities 

in the sugar sector in the long 

run. All decision-making processes and 

controlling are based on the principles 

of good Corporate Governance. The 

Nordzucker AG supervisory and managing 

boards have addressed this objective 

in a perfectly systematic and proactive 

manner.” 

At a closed session in February 2004, 

the supervisory board deliberated on the 

strategic development of Nordzucker AG. 

A major item on the agenda of that 

meeting was the competence in sweetening 

products as a strategic concept. 

Supervisory Board Committees 

In the period under review, the audit 

and finance committee convened four 

times. Items on the agenda of these 

meetings, at which the auditing firm was 

also represented, were the review and 

approval of the financial and consolidated 

statements, the nomination of the auditors 

for the financial year 2003/2004, 

their remuneration, the audit assignment, 

the review of the auditor’s independence, 

risk management, as well as internal 

revision. 

The personnel committee convened 

for two meetings, at which it primarily 

dealt with managing board matters. 

These included, in particular, the target 

catalogue for the managing board, and 

the determination of the variable compensation 

for the board members. 

The supervisory board received regular 

reports of the committee meetings. 

Financial Statement 

The auditors and tax consultants 

Lang und Stolz KG, Braunschweig, which 

the general meeting had nominated as 


Report of the Supervisory Board 

auditors for the financial statement, were 

given the audit assignment by the supervisory 

board. 

The consolidated financial statement 

presented by the managing board, the 

Nordzucker AG financial statement as of 

29 February 2004, as well as the management 

report (which was presented as 

a joint report for the group and 

Nordzucker AG) were audited by the 

auditors together with the accounting 

data, and were certified without reservation. 

Representatives of the auditing firm 

attended the supervisory board and 

finance committee meetings convened to 

approve the balance sheet, and they 

presented and explained the audit report 

to the supervisory board. 

Following a final review, the supervisory 

board approved the financial and 

consolidated statements presented by 

the managing board. The financial statement 

of Nordzucker AG was thus adopted. 

The proposal presented by the managing 

board for appropriation of the net 

income was approved. 

News and Personalities 

At the supervisory board meeting of 

5 September 2003, Henning Hansen- 

Hogrefe was re-elected chairman of the 

Nordzucker AG supervisory board. Lothar 

Wrede and Jürgen Seidel were elected 

deputy chairmen. In 2002, Gunold Fischer 

had already been elected deputy chairman 

of the supervisory board for a fiveyear 

term. 

At the same meeting, Dietrich 

Hauschildt-Staff was elected chairman of 

the audit and finance committee. 

The term of office of the supervisory 

board members Gerhard Becker (Klein 

Bünstorf) and Ernst von Lüneburg (Essenrode) 

expired at the end of the general 

meeting on 5 September 2003. New 

supervisory board members elected by 

the 2003 general meeting are Goetz von 

Engelbrechten and Jürgen Seidel as 

shareholders’ representatives. 

The employees’ representative in the 

supervisory board had been elected by 

the Nordzucker AG staff in 2002. Birgit 

Pitsch (Langenhagen) vacated her position 

in the Nordzucker AG supervisory 

board as of 3 January 2004, because of 

the new function she had assumed for 

the union of workers in the foodstuffs, 

semi-luxuries and catering trades (NGG). 

Her successor is Manfred Tessmann 

(Vienenburg). 

We thank all the retiring board members 

for their commitment and their 

constructive support given to the company 

and the managing board during the 

past years. We are convinced that the 

new supervisory board members will 

contribute in the same manner to the 

successful work done by this body. 

The supervisory board expresses its 

thanks to the managing board as well as 

the Nordzucker staff for their valuable 

personal commitment. 

The Supervisory Board 

Braunschweig, 25 May 2004 

Henning Hansen-Hogrefe 

Chairman of the Supervisory Board 

8

„Magyarország hamarosan 

érzékelni fogja az Európai 

Unióba történő belépés 

előnyeit. A magyarok szorgalmasak, 

aktívak és jól 

képzettek. Elismerésre méltó 

tagjai lesznek az EU-nak. Az 

Uniós belépés gazdasági biztonságot 

és új fejlődési 

lehetőségeket hoz számunkra. 

A Nordzucker szerencsi gyárának 

alkalmazottjaként 

lehetőségem nyílik személyes 

álmaim megvalósítására is.” 

“Hungary will soon be enjoying the 

benefits of its EU membership. The 

Hungarians themselves are hardworking, 

active and well-trained, 

and they will become highly accepted 

members of the EU. Membership 

will bring us economic security and 

new opportunities for development. 

As a member of the team at the 

Nordzucker plant in Szerencs I will 

also be able to realise my own 

personal dream” 

Zoltán Tóth 

Technology Manager 

Szerencs Plant, Hungary 


Management Report 

Group 

Sugar production in m. tonnes (white sugar value) 

1.80 

1.60 

1.40 

1.20. 

0 

1.39 1.45 

1.33 

1.51 1.49 

1.70 

1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 

Turnover (in t billion) 

1.20 

1.10 

1.00 

0.90. 

0 

0.98 

1.02 1.01 

1.07 

1.33 

1.18 

1.15 

1.25 


Annual surplus (in t million) 

80 

60 

40 

20. 

0 

9 

21 

22 

36 


Cash flow (in t million) 

160 

130 

100 

70. 

0 

138 

80 75 

83 


Nordzucker AG dividend (in t million) 

40 

30 

20 

10. 

0 

8.9 

10.5 

12.2 

16.2 

55 

148 

29.8 

26 

100 

19.6 

23 

107 

22.5 


Structural and Organisational 

Changes 

Characteristic features of the financial 

year 2003/2004 include the takeover 

of the operations of Union-Zucker Südhannover 

GmbH, Nordstemmen, (Union- 

Zucker), effected by a transfer of assets, 

as well as the acquisition of three sugar 

factory companies in Hungary and an 

increase of the interest in Syral S.A., 

Marckolsheim, from 36 to 50 percent. 

Union-Zucker Becomes Fourth Holding 

The takeover of the Union-Zucker operations 

was effected by an increase in the 

share capital to include Union-Zucker as 

the fourth holding company of 

Nordzucker AG and by the transfer of 

assets (the Nordstemmen sugar factory) 

as a contribution in kind. As a result, the 

present Nordzucker AG figures can only 

be loosely compared to those of the 

previous year. With the exception of 

turnover, the same can be said to apply 

to all group figures. Previous group 

turnover figures already accounted for 

Union-Zucker as part of the joint distribution 

organisation Nordzucker GmbH & 

Co. KG, Braunschweig. 

Expansion of Consolidation Scope 

The acquisition of a majority interest in 

three sugar factory companies in Hungary 

has expanded the basis of our consolidation 

and has affected the consolidated 

figures accordingly. 

With the 50-percent stake in Syral 

S.A., equity consolidation is taking this 

participation as part of the group equity

capital into consideration for the first 

time in the year under review. 

SweetGredients GmbH & Co. KG, 

Nordstemmen, (SweetGredients), was 

founded as a 50:50 participation 

between Nordzucker and the Danish 

food producer Arla Foods. In a pilot 

plant in Nordstemmen, SweetGredients 

produces the lactose-based sweetener 

Tagatose. In view of the participation 

ratio, proportional consolidation is used 

to include SweetGredients in the consolidated 

financial statement. 

Integration of Sugar Distribution 

As a result of the merger with Union- 

Zucker, Nordzucker AG has become a 

100-percent shareholder of the former 

distribution organisation Nordzucker 

GmbH & Co. KG. To improve its customer 

and process orientation, 

Nordzucker AG has taken charge of sugar 

distribution, including the sales staff in 

Braunschweig (effective as from 1 January 

2004). Nordzucker GmbH & Co. KG 

has instead become a pure production 

organisation for liquid sugar and other 

products using plants in Groß Munzel 

and Nordstemmen. As is the case with 

crystalline sugar, these products are sold 

by Nordzucker AG. 

Zuckerinstitut Becomes Nordzucker 

InnoCenter GmbH 

Furthermore, it has also been necessary 

to re-examine the legal form of the Institut 

für Technologie der Kohlenhydrate – 

Zuckerinstitut – e. V. The former incorporated 

society has now become a GmbH, 

a private limited company. Serving as 

the Nordzucker research centre, the 

Zuckerinstitut will in future bear the name 

Nordzucker InnoCenter GmbH. The computer 

centre (Rechenzentrum Zucker), 

the third organisation that had previously 

been used jointly, has now been integrated 

into Nordzucker AG. 

Organisational Changes 

Parallel to the changes that have taken 

place under the company law, Nordzucker 

abandoned its division-based structure in 

favour of a more process-oriented organisation. 

These changes took effect in time 

with Dr. Ulrich Nöhle assuming his function 

as the new managing board chairman. 

In line with providing a coherent 

orientation of all Nordzucker activities 

towards markets and customers, the 

previous divisions Euroland, Diversification 

and Research & Development were 

dissolved in October 2003. Our German 

sugar activities are represented by 

Nordzucker AG (for the production of 

crystalline sugar and distribution) and 

Nordzucker GmbH & Co. KG (for the 

production of liquid sugar and similar 

products). International sugar activities, 

including our minority participation in 

Cukrovary TTD in Dobrovice in the Czech 

Republic, have as yet not been completely 

integrated into the Nordzucker process 

organisation. Until they are, they will 

remain under the control of the Sugar 

International division. 

As a result of these reorganisational 

measures, the figures shown for 

Nordzucker AG on the whole correspond 

to the figures of what used to be the 


Management Report Group 

Sugar Euroland division – with the addition 

of the Nordstemmen plant. As before, 

the international sugar activities are 

included in the Sugar International section 

of this report. Details on other participations 

(previously: Diversifications) 

are shown under Business Development. 

Closure of the Schleswig Plant 

Following detailed analyses aimed at 

achieving more efficient processing 

structures, the Schleswig plant was 

closed at the end of the 2003 campaign. 

Nordzucker thus opted for the most 

economically viable option available to 

reduce excess capacities. 

Bioethanol Plans and Filou 

Discontinued 

Against the background of intensified 

concentration on our core activities, we 

again carefully weighed up the framework 

conditions, opportunities and risks, 

and decided against constructing a 

bioethanol plant. All plans to this effect 

were suspended at the end of 2003. The 

federal government has in the meantime 

resolved that until 2009, bio fuels should 

come under an annually reviewed tax 

exemption scheme. Nordzucker sees this 

as a positive move. Since there is still no 

tariff protection for bioethanol or any 

regulation requiring the admixture of this 

kind of fuel, and in view of the forthcoming 

reforms of the sugar market regulations, 

the risks still outweigh the benefits 

of such a capital expenditure. The production 

and marketing of the cat litter 

Filou of Greenfox GmbH, which uses 

beet pulp as a stock material, has also 

been discontinued. Excellent properties 

make this cat litter an up-market product, 

but at the end of an adequate test 

phase it was not able to establish itself 

in the market. 

Operating Results 

The increase in the consolidated sales 

revenues to Euro 1.25 (1.15) billion in 

the financial year 2003/2004 is primarily 

due to the acquisition of three sugar 

factories in Hungary. Our activities in 

Poland, Slovakia and Hungary account 

for Euro 182 (115) million of our sales 

revenues. 

Sales and Proceeds 

Prices have remained relatively steady: 

sugar sales in Germany, Poland, Slovakia 

and Hungary were roughly those of the 

previous year. In Poland, with the sugar 

price at less than Euro 400 per ton, the 

market continued to be slack. Only 

shortly before the admission to the EU on 

1 May 2004, did prices start to rise again. 

Budget-price imports in particular from 

Poland in the spring of the year 2003 

produced sales problems and a slight 

drop in the prices fetched in Hungary. 

Results 

The consolidated annual surplus of Euro 

23.3 (26.4) million shown remains by 

Euro 3.1 million below that of the previous 

year. This drop is due to the fact that 

following revision of articles 298 and 308 

of the German Commercial Code (HGB), 

the special reserve with an equity portion 

is no longer effective. Under the revised 

regulations, the special item created 

in the past for assets write-downs, in 

12

particular for the Klein Wanzleben factory, 

may no longer be shown in the consolidated 

balance sheet and has to be 

completely allocated to equity capital 

(60 percent) and tax reserves (40 percent). 

The favourable impact of the 

dissolution of the special reserve with an 

equity portion hence no longer applies 

for the group. Without the HGB revision, 

the consolidated surplus would clearly 

have exceeded last year’s results. 

Thanks to a very unproblematic 

campaign and a lower declassification – 

1.78 (7.12) percent – than in the previous 

year, the Euro 81 (63) million operating 

result of Nordzucker AG was the second 

best result in its history. The annual surplus 

rose to Euro 51 (46) million. This 

figure includes the non-recurrent additional 

expenditure of Euro 13 million 

incurred in connection with the closure 

of the Schleswig plant. 

Positive results of Euro 1.9 (1.6) million 

are also shown for Slovakia. Syral 

S.A, the producer of starch saccharification 

products, in which Nordzucker now 

holds a 50 percent stake, achieved its 

turnaround and completed the year 

under review with a profit of Euro 1.6 

(- 8.4) million. 

Although the closure of three factories 

and reductions in the staffing level by 

about 40 percent to 806 employees on 

an annual average have much improved 

the cost structure in Poland, the unsatisfactory 

market situation produced a loss 

of Euro 11 (15) million. In Hungary, a 

decline in sales, primarily due to imports 

of Polish sugar, led to a negative result of 

Euro 3.6 million, despite the instigation 

of rationalisation measures. In the year 

under review, the Hungarian companies 

were consolidated for the first time, 

restricting meaningful comparisons with 

results from the previous year. 

Dividend 

Of the annual surplus of Euro 50.9 (45.8) 

million shown for Nordzucker AG for 

fiscal 2003/2004, Euro 28.4 (26.2) million 

are to be allocated to reserves to increase 

equity. An amount of Euro 22.5 (19.6) 

million is to be used towards paying out 

a dividend of Euro 0.49 per individual 

share certificate in line with the previous 

year. 

Capital structure of Nordzucker AG 

(in t million/percent) 

Nordharzer Zucker AG 

9.5 t million 8.1 % 

Union-Zucker 

Südhannover GmbH 

12.4 t million 10.6 % 

Public shareholders 

4.1 t million 3.5 % 

Nordzucker Holding AG 

47.7 t million 40.5 % 

Zucker-Aktiengesellschaft 

Uelzen-Braunschweig 

43.8 t million 37.3 % 


Management Report Group 

Balance sheet structure 

Nordzucker Group 

(in t million ) 

1,200 

1,000 

800 

600 

400 

200 

140 

120 

100 

80 

60 

40 

20 

0 

0 

1,022.9 

19,6 

173.4 410.6 

378.9 

254.7 

470.6 

Other 

current 

assets 

338.0 

2002/03 

1,125.1 

22.5 

128.8 599.1 

462.6 

533.7 

191.4 

312.1 

2003/04 

Dividend 

Borrowings 

(short-term) 

Borrowings 

Stocks (medium- and 

long-term) 

Fixed assets 


(share capital, 

reserves and 

60% special 

item) 

Investment (including 

borrowing) in financial assets 

(in t milion) 



122.9 

102.3 

34.0 

17.0 

26.5 

15.0 

20.6 

2.0 7.5 

2001/02 2002/03 2003/04 

Financial Status 

Capital Increase – Withdrawal of the 

“Old” Direct Participation Shares 

In April 2003 we initiated the first capital 

increase of Euro 18 million from the capital 

authorised by the general meeting of 

12 September 2002. This was in addition 

to the capital increase of Euro 12 million 

resulting from the agreement concluded 

with Union-Zucker on the transfer of 

assets. These two capital increases mark 

an important step towards adjusting the 

equity base to the increasing requirements 

made by external creditors. 

As part of measures taken to increase 

capital, we have also offered the option 

of redeeming old direct participation 

shares at the original issue price. 

Redemption and withdrawal of these 

shares have reduced the equity capital by 

Euro 6 million. 

Balance Sheet Total and Equity Capital 

The consolidated balance sheet total 

has increased by Euro 110 million to Euro 

1.13 (1.02) billion as of 29 February 

2004. In the financial year 2003/2004, 

the equity capital shown rose by 

Euro 330 (296) million, which is primarily 

due to the altered manner of indicating 

the special reserve with an equity portion. 

This has to be seen against the 

background of initial consolidation, as a 

result of which goodwill (i.e. the difference 

between acquisition costs and our 

share in the equity capital shown) of 

about Euro 42 million was charged 

against the equity capital. 

As of 29 February 2004, the equity 

capital ratio amounted to 28 (33) percent. 

The fixed assets of Euro 534 (471) 

million are covered at a rate of 94 (125) 

percent by medium and long-term capital. 

As in previous years, capital expenditure 

for tangible and financial assets was 

financed from the Euro 107 (100) million 

cash flow, as well as from borrowings and 

from the capital increase. 

Capital Expenditure 

The Euro 65 million capital expenditure 

for tangible assets essentially concerned 

Nordzucker AG, as well as our plants in 

Poland, Slovakia and Hungary. 

The Euro 123 million capital expenditure 

for financial assets of Nordzucker AG 

are accounted for by the acquisition and 

increase of our financial holdings in Hungary, 

Poland and Slovakia, as well as in 

Syral and SweetGredients. 

14

„Die EU-Erweiterung sehe 

ich sehr positiv. Ein größerer 

Markt eröffnet auch für 

Nordzucker viele neue 

Chancen und kann für 

alle Beteiligten nur von 

Nutzen sein.” 

“The enlargement of the EU is a 

very positive thing. A larger 

market opens up many more 

opportunities for Nordzucker 

and this can only be helpful for 

all involved.” 

Kerstin Berlin, 

Machine Operator 

Uelzen plant, Germany 




Sugar yield Nordzucker AG * (in t/ha) 

10.00 

9.50 

9.00 

8.50. 

0 

8.53 

8.63 

9.40 

10.06 

8.89 

8.67 

9.75 


Beet yield Nordzucker AG * (in t/ha) 

56 

53 

50 

48.5 

49.9 

55.9 

52.6 53.4 

52.1 

55.5 

In the 2003 campaign, Nordzucker AG 

operated nine (eight) white-sugar factories 

in the federal states of Lower Saxony, 

Schleswig-Holstein, Sachsen-Anhalt, and 

Mecklenburg-Western Pomerania. These 

factories processed an average 97,000 

(81,000) metric tons of beets per day. In 

compliance with the supervisory board 

resolution of 19 March 2003, the 

Schleswig plant was closed after this 

campaign as a measure of reducing surplus 

capacities. 

47. 

0 


Beet Cultivation, Sugar 

Production, and Operating Results 

Campaign Nordzucker AG * (in days) 

90 

85 

80 

75. 

0 

79 

80 

92 

88 

90 89 89 


Processing rate Nordzucker AG * (in 1,000 tonnes of beet/day) 

110 

100 

90 

80. 

0 

101.2 

100.9 

87.5 

83.7 

81.5 

96.9 


Employees Nordzucker AG * (as of 30 Sept.) 


2,000 

1,500 

1,000 

500. 

0 

1,971 

1,639 

89.5 

1,568 

1,463 

1,440 1,560 

1997 1998 1999 2000 2001 2002 2003 

Campaign employees 

Full-time employees 

In 2003, 10,750 (10,100) beet farmers 

cultivated sugar beets for Nordzucker AG 

on a total of 155,000 (144,000) hectares. 

The larger area under beet cultivation 

resulted from the integration of the 

Union-Zucker crop area. After average 

yields in the two previous years, 

Nordzucker had an excellent beet harvest 

in 2003 with a total of 8.6 (7.4) million 

metric tons. The per-hectare yield was 

55.5 (52.1) tons, which at a sugar content 

of 17.6 (16.6) percent after the 

extremely dry summer of 2003 almost 

equalled the excellent crop yield of the 

2000 campaign. 

All values analysed confirmed a beet 

quality that exceeded the five-year average. 

The quality premium rose accordingly, 

and a total of Euro 6.2 million was 

distributed in the year under review. The 

2003 campaign was the second campaign 

in which bio-beets were cultivated. 

* 1997/98 to 2001/02 including Nordkristall GmbH and ZVM GmbH 

2003/04 including Union-Zucker plant in Nordstemmen 

16

These were processed in the Warburg 

factory of Südzucker under contract. 

The operating results rose to Euro 81 

(63) million. This distinct rise over the 

previous year’s figures is the result of an 

altogether unproblematic campaign, the 

high sugar content, and the lower quota 

sugar declassification. Despite the larger 

quantity, C-sugar proceeds by contrast 

remained below the previous year’s level, 

which is attributed to the marked drop in 

world market prices. 

Sales 

World Sugar Market 

Market analysts expect sugar production 

to amount to some 146 (149) million 

metric tons raw sugar value worldwide 

for the sugar production year 2003/2004 

(1 October to 30 September). The share 

of the EU sugar industry in this decline is 

about two million metric tons. Consumption 

is estimated to be about 143 (136) 

million metric tons. 

Against the background of the 

decreasing US dollar, the world market 

prices continued their downward trend in 

2003. At Euro 158 per metric ton of 

white sugar, October 2003 saw the lowest 

level since 1990. By mid-December 

2003, quotations rose slightly to Euro 

168 per metric ton. Although the US 

dollar continued to be weak, prices started 

to recover at the end of January 2004, 

and they reached a level of Euro 190 per 

metric ton by mid-March. 

European Union 

The 15 (17) million metric tons of sugar 

produced in the EU in the 2003 campaign 

remain some two million metric 

tons of sugar below the previous year’s 

production figure. This drop is attributed 

to the sugar yield, which because of the 

summer drought was clearly lower than 

in the previous year and only reached an 

average 8.8 (9.2) metric tons of sugar 

per hectare. Another factor is the restriction 

in beet cultivation in the EU, reducing 

the cultivated area by 6.8 percent to 

1.7 (1.8) million hectares. Only Denmark 

and Ireland report production figures 

above the previous year’s levels. Sugar 

yields were between 11.8 metric tons of 

sugar per hectare in France and 4.6 metric 

tons of sugar per hectare in Finland. 

To comply with WTO requirements, 

the EU Commission has decided to subsequently 

reduce the quota sugar production 

for 2003/2004 by approximately 

206,700 (827,000) metric tons (declassification). 

For Nordzucker this meant that 

about 19,000 (74,000) metric tons of 

quota sugar had to be converted into 

C sugar. 


As a result of the integration of Union- 

Zucker, Nordzucker AG has considerably 

increased the sales of crystal sugar in the 

EU. In spite of increasingly competitive 

trading conditions, sales in 2003 

remained at the previous year’s level. In 

view of the substantial declassification in 

the 2002 campaign, far higher amounts 

of C sugar had to be marketed on the 

world market in the year under review. 


Management Report Nordzucker AG 

To account for the unexpected high 

declassification in the previous year, we 

decided to cut quota sugar exports. 

Household Sugar 

For 2003, Nordzucker recorded highly 

satisfactory increases in household sugar 

sales over the last year’s figures. The 

increase is attributed to new customers, 

optimised measures, and the successful 

launch of new products. In the year 

under review we carried out the first 

category-management project – in cooperation 

with a trading firm – with excellent 

results. This move shows Nordzucker’s 

willingness to comply more directly with 

the requirements of its commercial 

clients. 

Liquid Sugar 

Liquid sugar sales have maintained the 

previous year’s level. Demand in the beverage 

industry for this product dropped 

after the deposit system on cans was 

introduced in Germany on 1 January 

2003. This drop was compensated for 

by peak demands in the extreme summer 

of 2003. 

Molasses 

Because of the weak standing of the US 

dollar and declining demands, the market 

for molasses saw a negative trend in 

the year under review. Favourable preliminary 

agreements allowed us to secure 

satisfactory prices in spite of this trend. 

However, altogether proceeds remained 

below the previous year’s results. 

Pellets 

The price increase in the feed market 

proved to be favourable for us. Because 

of the extreme summer drought, grain 

growers turned in a much poorer harvest. 

Pellets profited from rising prices 

for grain and expensive substitutes. Proceeds 

increased by one percent over the 

previous year. 

Human Resources 

As a result of the integration of the Nordstemmen 

plant as of 1 March 2003 and 

the takeover of the staff from both 

Nordzucker GmbH & Co. KG and the 

computer centre (Rechenzentrum Zucker), 

the staffing level of Nordzucker AG has 

risen to 1,559 (1,392) on an annual average. 

First measures have been taken to 

adjust the staffing level of the Nordstemmen 

plant to the normal Nordzucker 

standard. These include an early retirement 

and pre-retirement part-time 

scheme, as well as conversion to threeshift 

operation during the campaign. In 

addition, we have proceeded with the 

early retirement and pre-retirement parttime 

schemes for the company as a 

whole to reduce the payroll as scheduled. 

The consolidated companies had a total 

of 3,758 (3,475) members of staff on 

their payroll. 

Closure of the Schleswig Plant 

The Schleswig plant was closed after the 

2003 campaign as resolved by the supervisory 

board on 19 March 2003. In keeping 

with our internal “alliance for work” 

agreed in 1997/1998, all 138 regular 

employees affected by the closure were 

18

offered a job at one of the other 

Nordzucker locations. When their contracts 

have terminated, employees who 

have not taken up this opportunity can 

opt to attend a continuing education 

college for a period of up to one year to 

develop their knowledge and professional 

skills. Trainees who have started their 

traineeship at Schleswig have been given 

the chance to complete their training 

either at another Nordzucker location or 

with another employer in the Schleswig 

region. 

Staff Profit-Sharing Scheme 

In the year under review, the share rose 

to about Euro 1,650 (1,300) per employee 

of the Nordzucker AG workforce. This 

is calculated on the basis of the annual 

surplus achieved for the group. In the 

period under review, the effect of the 

reclassification of the special item was 

added to the consolidated annual surplus 

in determining the profit-sharing assessment 

basis. This is to prevent the 

Nordzucker staff from being adversely 

affected by the revised accounting regulations. 

Safety at Work/Health Protection 

At a total of 10 (15) accidents requiring 

reports in the year under review, 

Nordzucker remained by far below the 

average in this sector of industry. We also 

consistently pursue our goal of “zero 

accidents” and low sick leave levels. In 

view of an increasing percentage of accidents 

to and from the place of work in 

2003, one of our main activities was 

a road safety day which we organised 

together with the Sugar trade association 

at all Nordzucker locations. 

Brain Pool 

The Nordzucker brain pool was introduced 

in the year 2000. It is an instrument 

through which our employees continuously 

participate in the optimisation 

of in-company procedures. Proposals 

submitted in 2003 concerned improved 

safety at work and health protection as 

well as staff and customer satisfaction. 

Proposals also dealt with optimised production 

and maintenance processes. 

502 of a total of 1,109 proposals were 

rated positively. Implementation of staff 

proposals allowed Nordzucker to effect 

net savings worth about Euro 153,000 

in the year under review. The premiums 

paid out to the employees concerned 

amounted to Euro 65,000. 

Factory Group Work 

After the successful conclusion of the 

preparatory phase, group work during 

the maintenance period was launched 

at the Clauen plant in January 2004. 

The new work organisation scheme was 

developed under the “factory organisation” 

project and is to intensify staff 

integration as a means of improving the 

maintenance process. After the trial 

phase in the Clauen plant, the group 

work concept is to be implemented in 

the other factories beginning in 2005. 

The necessary preparations are already 

under way. 

Accidents requiring reports 

Nordzucker AG * 

15 15 

14 

12 

10 

10 

8 

6 

4 

2. 

0 

2001/02 2002/03 2003/04 

* 2001/02 incl. Nordkristall GmbH and ZVM GmbH 

* 2003/04 incl. Union-Zucker plant Nordstemmen 



Trainees 

Nordzucker AG * 

150 

140 

130 

120 

110 

100 

90. 

0 

110 

121 

145 

30.09.2001 30.09.2002 30.09.2003 

* 2001 incl. Nordkristall GmbH and ZVM GmbH 

* 2003/04 incl. Union-Zucker plant Nordstemmen 

Personnel Development 

To make sure that the company continues 

to operate successfully in the future, 

Nordzucker has to make increasingly 

higher demands on the qualifications of 

all its employees. Starting from the personnel 

development offensive of the past 

four years, the company is now concentrating 

on the individualisation of the 

qualification measures. A central aspect 

of the 2003 training scheme was the 

leadership issue. It includes the competence 

development programme for all 

senior and junior executive staff that was 

launched previously, as well as additional 

programmes for junior managers and 

foremen. 

Training 

Notwithstanding its scheduled staff cuts, 

Nordzucker is continuing its efforts to 

provide qualified training for young people. 

The integration of the Nordstemmen 

plant has increased the number of trainees 

to 145 (121) as of 30 September 2003. 

Our aim of employing ten percent 

trainees based on our regular workforce 

has thus been attained. 

In the year under review, we continued 

to develop the Nordzucker training 

standards. The syllabus for the technical 

and industrial training in the electrical 

and metal-working professions has been 

re-structured and included in the regular 

training programme. In 2003, we expanded 

our qualification programme for 

instructors by also including pedagogical 

elements. 

Nordzucker would like to thank all 

its employees for their commitment and 

for the successful work done. Particular 

thanks is due to the staff of the Schleswig 

plant. Despite the forthcoming closure 

of their factory, they showed a high level 

of commitment and flexibility and completed 

the campaign most successfully. 

We would also like to thank the members 

of the works council for their constructive 

and critical cooperation. 

Investment 

In the year under review, Nordzucker AG 

invested Euro 35.7 (54.5) million primarily 

in the sugar factories of Clauen and 

Uelzen. Investments concentrated on the 

improved product and service quality, 

reduced energy requirements, and the 

implementation of the “dry beet yard” 

concept, as well as other environmental 

measures. 

Product and Service Quality 

The new dust arrester plant for white 

sugar installed in the service centre of 

the Wierthe sugar factory will help 

not only meet customer requirements 

and hygiene guidelines, it also maintains 

compliance with HACCP requirements. 

Equipment installed in the Nordstemmen 

plant for continuous colour measurement 

provides a complete and uninterrupted 

quality control chain in the bulk loading 

and pre-screening station of that plant. 

The Güstrow sugar factory has been 

equipped with a new bagging line using 

palettomats, which Nordzucker has 

developed in cooperation with the 

20

Fraunhofer Institut für Produktionstechnik 

und Automatisierung. The automatic 

bagging station for 50-kilogram bags 

commissioned in Schladen will increase 

both safety at work and efficiency in the 

factory. 

Efficient Use of Energy 

In the Clauen factory, installation of a 

steam dryer with a water evaporation 

rate of 50 metric tons per hour has 

reduced energy requirements in the drying 

station by about 80 percent. The new 

system provides for uniform pellet drying 

during the entire campaign and saves 

the costs of the primary energy that had 

been used before. The Munzel factory 

has been equipped with a new boiler 

which generates the energy required in 

the liquid sugar plant. Since it can operate 

on the biogas produced in the factory’s 

waste water treatment plant, the 

use of fossil energy has been reduced. An 

additional vertical pulp press in the 

Nordstemmen sugar factory has helped 

reduce maintenance costs and energy 

requirements. 

Environment and Resources 

Conserving Production 

In the Uelzen plant, the expansion of the 

beet storage area and the reclaiming 

duct marks the completion of the third 

construction phase for the dry beet yard. 

Gentle handling of about 35,000 metric 

tons of beets safeguards beet supply to 

the factory at weekends. A new beet 

conditioning plant has also been installed 

in Uelzen. Since it has been encased for 

noise protection, the noise pollution level 

has been halved. Limited periods of contact 

between beets and washwater as 

well as four new flume water filters have 

much reduced the organic waste water 

load. In the Güstrow factory, the acidulation 

basins have been provided with 

covers, thus reducing odour emissions 

considerably. In the Schladen factory, a 

closed turbine cooling cycle has replaced 

a system for which well water had to 

be tapped. This has cut the cooling water 

requirements by more than half. The 

drives of the vertical pulp presses in the 

Nordstemmen factory have been encased 

to help reduce excessive noise exposure. 

Environment 

Our company policy and the environmental 

regulations that serve as a binding 

basis for the actions of our staff 

reflect the significance we attach to high 

quality standards in all fields. 

Certification 

The continuous improvement of environmental 

standards has been one of our 

central issues for many years. Since 1995, 

all the German Nordzucker locations 

have regularly taken part in the European 

Environmental Management and Audit 

System (EMAS II). In addition, they have 

obtained DIN ISO 9001:2000 and 14001 

certification. The annual factory audit 

was made in October 2003. 

In 2003 we subjected the Nordzucker 

plants in Poland, Slovakia and Hungary 

to an environmental impact assessment 

for the first time. Adaptation of EU law is 



320 

300 

280 

260. 

0 

under way in the new EU countries. EU 

limit value regulations have in the meantime 

been adopted in many areas. 

Setting the Pace for CO 2 -Emissions 

The sugar industry is the only sector of 

the food industry which is successfully 

participating in the climate agreement of 

the German industry. It has voluntarily 

committed itself to cut emissions by 41 

to 45 percent between 1990 and 2005. 

Nordzucker has reduced CO2 emissions 

Energy consumption Nordzucker AG (in KWh/tonne of beet) 

296 

306 

286 

281 

263 

274 273 

1997 1998 1999 2000 2001 2002 2003 

CO 2 emissions Nordzucker AG (in tonnes of CO 2 /tonne of beet) 

0.088 

0.085 0.085 

0.082 

0.079. 

0 

0.087 

0.082 

0.083 

0.079 

0.082 

0.080 

1997 1998 1999 2000 2001 2002 2003 

Environmental investment Norzucker AG (in t million) 

40 

30 

20 

10. 

0 

4.7 

12.5 

7.8 

6.5 

18.3 

21.5 

31.3 

1997 1998 1999 2000 2001 2002 2003 

by 43.5 percent (German sugar industry: 

41.8) and is hence taking the lead in 

translating the Kyoto Protocol into practical 

action. But it is as yet not certain 

whether the measures taken to this effect 

will be accounted for in the national 

allocation plan of the Federal Environment 

Ministry. It could be that most 

of our pioneering measures will not be 

taken into consideration, and that early 

action and capital-intensive investment 

into the environment are subsequently 

penalised. Nordzucker has entered into 

discussions with the policy makers 

concerned to be able to contribute to 

constructive solutions. 

Nordzucker Environment Report 

Nordzucker uses two channels to regularly 

document the results of its activities in 

the environmental sector: the environment 

report as well as factory-specific 

environment declarations. On this basis 

we maintain a constant dialogue with the 

relevant target groups, including authorities, 

associations and the interested public. 

Reduced Water Requirements 

Constant reduction of the amount of 

water supplied externally was an important 

issue again in the “International Year 

of Freshwater“ in 2003. Today, 85 percent 

of the water requirements of our factories 

are covered by the water contained in 

the beet cells. This can be achieved by 

using the water available several times 

and by closing water cycles. In Uelzen, 

a large water reservoir belonging to the 

* 1997/98 including Nordkristall GmbH and ZVM GmbH 

2003/04 including Union-Zucker plant Nordstemmen 

22

local irrigation association holding 

650,000 cubic metres of water was put 

into service in the past campaign. The 

pre-treated waste water from the Uelzen 

sugar factory is stored in that reservoir 

during the campaign and is available for 

agricultural irrigation during the vegetation 

period. Groundwater extraction is 

thus considerably reduced. 

Restoration of Former Sites 

Since 1984, Nordzucker and its predecessor 

organisations have restored a total 

area of 190 hectares previously used by 

13 sugar factories. This area is now under 

the care of municipalities, foundations 

or other bodies. In the next two years 

another 110 hectares from eleven abandoned 

sites will be handed over in a similar 

way. 

Last year, the restoration of abandoned 

sites was on the agenda of a public 

event organised in Meine, near Braunschweig. 

Environmental associations, 

politicians and the press were given a 

first-hand impression of the responsibility 

Nordzucker assumes when it comes to 

making inactivated factory sites available 

for new social and environmental uses. 

What used to be the factory premises 

is now the new centre of Meine, with a 

housing estate and shops. The former 

lagoons have become a habitat for rare 

bird species, and the lakes are now a 

recreation area for the local population. 

Research and Development 

The Nordzucker AG research and development 

functions are the responsibility 

of the Nordzucker InnoCenter GmbH, 

Braunschweig. Renamed, the company 

was previously the Institut für Technologie 

der Kohlenhydrate – Zuckerinstitut – 

e. V. With the development of new products 

and processes, the Nordzucker 

InnoCenter supports Nordzucker in 

expanding its market position. Another 

key function of the centre is the provision 

of consultation services for Nordzucker 

customers. 

In promoting successful industrial 

research in the sweetening sector, 

Nordzucker invests into the development 

of products and technologies, quality, 

and customers counselling. And in carrying 

out these measures, we continuously 

expand our own competence and also 

make use of effective research networks 

with external experts. 

Product Development 

In the past financial year, the product 

brown sugar was developed for market 

maturity to supplement the household 

sugar range. The Nordzucker line of 

products now also includes ‘Backträume‘ 

baking flavours as well as a Nordzucker 

table castor, for which application profiles 

have been developed. The formulations 

for the special brands dietary 

gelling fructose and bio gelling sugar as 

well as for ready-to-use sugar coatings 

have been optimised. The SweetGredient’s 

new sweetener Tagatose has also been 



optimised for use in chewing gums, and 

new formulations have been developed 

for comprimates and coated tablets. In 

2003, Nordzucker’s investment company 

Syral in Alsace also profited from the 

Nordzucker InnoCenter competence in 

application technology. Moreover, in 

collaboration with our customers we have 

developed mixtures of sweeteners and 

other formulations for specific markets. 

Application Support 

To be able to offer its customers in industry 

a comprehensive advisory service, 

Nordzucker has set up expert teams. 

Each team is responsible for a specific 

product category and consists of a key 

account manager (sales) as well as 

an applications engineer (Nordzucker 

InnoCenter). Together they call on 

Nordzucker customers to discuss collaboration 

openings in product development, 

or to assist our customers with application-specific 

problems. In addition, our 

customers in industry can rely on our 

extensive logistics support in the technical 

field. 

Nordzucker InnoCenter GmbH 

Technology and Quality 

The support provided by the Nordzucker 

InnoCenter also covers technology and 

quality in production, a service which is 

available in connection with the production 

of sugar and such specialities as 

fondant or Tagatose. It is open to production 

facilities both at home and 

abroad. Quality assurance for laboratory 

analyses was instituted for the factory 

laboratories in Germany and in central 

and eastern Europe. 

New Fields for Innovative Use of Plants 

With ‘New Fields for Innovative Use of 

Plants’, the Nordzucker InnoCenter was 

assigned a new area of responsibility in 

2003. The main function of ‘New Fields’ 

will be to establish and document the 

state of agricultural, economic, and technical 

knowledge on specific issues of 

renewable raw materials. Results will, 

in particular, be made available to our 

shareholders and beet farmers. ‘New 

Fields’ will as a first step address the possibilities 

of using biomass as a source of 

energy. This information is to assist our 

farmers in their decision taking process 

for possible commitments in renewable 

raw materials. 

Analytical 

and 

Technical 

Chemistry 

Application 

Engineering 

Bioengineering 

and Organic 

Chemistry 

Energy and 

Process 

Engineering 

New 

Development 

for 

Innovative 

Utilization of 

Plants 

24

„Od członkowstwa w UE oczekuję 

redukcji bezrobocia i nowych 

możliwosci kształcenia dla 

młodzieży – również międzynarodowo. 

Poprzez łatwiejszy dostęp do 

nowych technologii, które z sukcesem 

wdraężamy już w zakładzie w 

Opalenicy, poprawi się również w 

sumie nasz standard życia.” 

”With Poland joining the EU, I would 

hope that unemployment among 

young people would fall and that 

training opportunities for them would 

rise – even internationally. Greater 

access to new technologies, which we 

have already witnessed with success 

here in our Opalencia plant, will 

certainly lead to an improvement in 

our standard of living as a whole.” 

25 

Stanislaw Polus, 

Master Craftsman, packing station 

Opalencia plant, Poland 



Shareholdings Sugar International 

Sugar International – Sugar yield (in t/ha) 

7.5 

7.0 

6.5 

6.0. 

0 

50 

45 

40 

35. 

0 

Sugar International – Campaign (in days) 

130 

100 

70 

40. 

0 

Sugar International – Processing rate 

(in 1,000 tonnes of beet/day) 

20 

15 

10 

5 . .0 

0 

6.3 

54 

7.4 

Poland 

59 

Poland 

18.3 

18.7 

Poland 

7.5 

Sugar International – Beet yield (in t/ha) 

44.7 

42.9 

39.6 

Poland 

77 

13.2 

6.7 

120 

100 

5.4 

7.7 

Slowakia 

49.8 

44.9 

Slowakia 

Slowakia 

4.9 

Slowakia 

6.6 

39.6 

93 

4.9 

Sugar International – Employees (as of 1 Nov.) 

6.5 

6.1 

Hungary 

42.4 

38.7 

Hungary 

57 47 

Hungary 

15.9 16.3 

Hungary 

The division Sugar International coordinates 

the Nordzucker sugar activities 

abroad. In recent years, Nordzucker 

has expanded its core activities in the 

accession countries in order to maintain 

its position in Europe through major 

market shares and to remain competitive 

in the long run. Following the acquisition 

of sugar factory companies in Poland, 

Slovakia, and – in the form of a minority 

participation – in the Czech Republic, we 

acquired three sugar factories in Hungary 

early in 2003. 

In the 2003 campaign, Nordzucker 

operated eight (eight) sugar factories in 

Poland, Slovakia, and Hungary, which 

account for an average processing rate of 

34,000 (23,600) metric tons of beets per 

day. The total area of 54,000 (36,000) 

hectares yielded an average 41 (47) metric 

tons of sugar beets. 

Poland 

In Poland, Nordzucker holds a market 

share of just below nine percent. Since 

the government called a halt to any privatisation, 

it has been prohibited by law 

to acquire additional state-owned Polish 

factories. Whether or not the opportunities 

for new acquisitions in Poland will 

improve after the country’s EU accession 

remains to be seen. 


2,000 

1,762 

1,500 

1,533 

1,178 

1,000 

905 

601 

686 673 

Campaign employees 

500. 

0 Full-time employees 

Poland 

Slowakia 

Hungary 

2001 2002 2003 

26 

Reduced Losses 

Surplus production as a result of lacking 

export mechanisms and cash flow bottlenecks 

faced by the state-owned sugar 

company “Polski Cukier”, led to a sag in 

sugar prices in the year under review. 

Government bodies did not support 

attempts to export the surplus production.

The unfavourable situation in this market 

is affecting all the sugar producers in 

Poland, and Nordzucker continues to 

record unsatisfactory proceeds. In a situation 

of officially fixed beet prices, the 

rationalisation measures launched have 

helped to reduce losses significantly to 

Euro 11 (15) million. 

In view of a number of structural 

measures and the transition of the Polish 

sugar market to the scope of the EU sugar 

market regulations, we expect a balanced 

result for the accession year 2004. 

Concentration in Two Locations 

The closure of three factories after the 

2002 campaign has improved the capacity 

utilisation rate of the active factories 

considerably. In the year under review, 

the campaign covered a period of 77 

(59) days. Sugar production was stopped 

in the Krasiniec factory at the end of the 

2003 campaign. For the year 2004, we 

start from more than 90 campaign days 

in the factories Opalenica (Wielkopolski 

Cukier S.A) and Chelmza (Pomorski 

Cukier S.A.). Our activities in Poland 

are now concentrated according to 

schedule in these two companies, in 

which Nordzucker holds a stake of some 

99 percent each. 

In 2003, the capital expenditure in 

fixed assets amounted to about Euro 9.8 

(4.3) million. Most of this capital was 

invested in the Chelmza plant, which, in 

addition to general modernisation measures, 

plans to expand its silo capacities. 

Slovakia 

With the acquisition of the Tereos stake 

(previously Union SDA), Nordzucker has 

a 95 percent interest in Považský Cukor 

a.s. In the period under review, first steps 

were taken toward the merger of this 

company with its subsidiary Trnavský 

Cukrovar a.s. The consolidation into one 

company will be completed in 2004. 

Improved Results 

The 2003 sugar sales and prices were on 

the previous year’s level and show a slightly 

better result of Euro 1.9 (1.6) million. 

The capital expenditure in fixed assets 

amounted to Euro 2.4 (1.3) million and 

was concentrated on the Tepla plant, 

which is to also process the Trnava beets 

as from the year 2005. 

Hungary 

In the year 2003, Nordzucker acquired 

three sugar factories in Hungary from the 

French Béghin-Say group. The majority 

of the Béghin-Say group itself has been 

taken over by Tereos. 

Polish Sugar Imports Make Prices Drop 

Sugar imports from Poland triggered a 

decline in prices in Hungary in the first 

six months of 2003. Adequate protection 

for the Hungarian market was not 

re-established until after that half-year 

period so that the result is a negative 

Euro 3.6 million. Another factor influencing 

the company results were the necessary 

adjustments to the balance sheet 

regulations of Nordzucker AG. 

Nordzucker market share 

in Poland (in percent) 

9% 


Nordzucker market share 

in Slovakia (in percent) 

39% 



Management Report Shareholdings Sugar International 

Nordzucker market share in 

Hungary (in percent) 

36% 


2004 Campaign in Two Factories 

In adjusting the processing capacity, 

sugar production in the Hatvan plant was 

stopped after the 2003 campaign. Since 

measures to protect the Hungarian market 

from the outside was re-established in 

mid-2003 and since Hungary became 

an EU member in May 2004, we expect 

satisfactory operating results in 2004. 

The capital expenditure in fixed assets 

amounted to Euro 6.3 million in the 

financial year. This primarily went toward 

the completion of a white-sugar silo in 

Szolnok. 

Czech Republic 

Although the market in the Czech 

Republic remains difficult, Cukrovary 

TTD, in which Nordzucker continues to 

hold a 33.5-percent interest, turned in a 

satisfactory result in 2003. After the closure 

of the Mělnik factory at the end of 

the 2003 campaign, and after the accession 

of the Czech Republic to the EU, we 

expect the results to improve beyond the 

2003 result. As from 2004, Cukrovary 

TTD will concentrate on beet processing 

at the factories in Dobrovice and České 

MeziřiČi. The Dobrovice plant will be 

expanded in 2004 to a beet processing 

rate of 10,500 metric tons. 

Of the operating result of about Euro 

six million in the financial year (1 January 

2002 to 30 September 2003), a dividend 

of Euro three million was paid out in 

March 2004. The Nordzucker share of 

this amount is Euro one million, which 

will be shown as revenue in the financial 

year 2004/2005. 

Business development of Sugar International (in t million) 

Poland Slowakia Hungary 

2002 2003 2002 2003 2003 

Sales 

77 

72 

38 

35 

77 

EBIT 

-8 

-6 

3 

4 

1 

Net income (consolidated) 

-15 

-11 

2 

2 

-4 

Investment in tangible assets 

4 

10 

1 

2 

6 

Employees (average of financial year) 

1,254 

806 

452 

370 

688 


4 

15 

13 

24 

24 

Nordzucker participation 

71–100% 

73–100% 

60% 

95% 

92–100% 

28

„želám si, aby moje deti ako 

Európania mali lepšie podmienky 

pre vzdelávanie, 

lepšie šance nájst’ si 

zamestnanie. Nordzucker a 

závod v Trenćianskej Teplej 

budú profitovat’ z dynamického 

hospodárskeho rozvoja 

vo východnej Európe, v tom 

som si istá.“ 

“I hope that my children will have better 

educational and professional prospects 

as EU citizens. Nordzucker and our 

factory at Teplá will profit from the 

dynamic business developments 

in eastern Europe; I’m sure of that.” 

Jarmila šumajová 


Teplá plant, Slovakia 



Shareholdings Business Development 

in t milion 

Hübner-Medopharm Syral* Amino** 

2002 2003 

2001/02 2002/03 

2002 2003 

Sales 

30 

31 

77 

168 

46 

44 

EBIT 

1 

2 

-6 

3 

3 

2 

Net income (consolidated) 

1 

1 

-8 

2 

2 

2 

Investment in tangible assets 

0 

1 

9 

142*** 

3 

2 

Staff (average of financial year) 

229 

210 

85 

272 

346 

344 


-4 

-3 

45 

44 

13 

18 

Nordzucker share (in percent) 

98% 

98% 

36% 

50% 

50% 

50% 

* Financial year ended on 30 Sept. each year 

2002/03 figures include Staral 

** Sub-group Amino (Amino GmbH, esparma 

GmbH, S.A. Bioproducts at equity) 

*** Including additions from merger 

30 

The non-sugar shareholdings are 

coordinated within the Business 

Development division. The only exception 

is the Hübner-Medopharm group, 

which because of the 98-percent stake is 

fully consolidated. The 50-percent share 

holding Syral S.A. and the Amino group 

are accounted for in the group with their 

equity ratio. SweetGredients is accounted 

for on a pro rata basis (proportional consolidation). 

Hübner-Medopharm 

The main business of the group, in which 

Nordzucker holds 98 percent, is the production 

and marketing of natural food 

supplements, medical and cosmetic 

products. The main outlets for these 

products in Germany are health shops 

and dispensing chemists. Exports go to 

more than 30 countries. 

Satisfactory Sales and Exports 

The highly satisfactory development of 

the group continued in 2003. Although 

consumer reluctance also affected the 

health shop sector in Germany with 

some delay, overall sales increased by 

some five percent. 

For the dispensing chemists sector, the 

seven-percent drop in sales reflects the 

strategy of reserving tight field service 

resources for customers with profitable 

minimum sales. Innovative products 

specifically developed for this sector 

will bring about an adjustment in 2004. 

Exports rose by six percent and have 

thus continued the favourable trend of 

previous years. The increase was not least 

due to new customers attracted in non- 

European markets. 

Modernisation Programme Completed 

Commissioning of the new filling and 

packaging plant for the core and USP 

product ‘Silicea’ in the spring of the year 

2004 completed the modernisation programme 

launched when Hübner was 

taken over. 

SweetGredients 

In line with the Nordzucker policy of 

developing its core activities in a changing 

market, Nordzucker founded the 

company SweetGredients in 2003. On

1 October 2003, the company, which 

Nordzucker is operating as a joint venture 

together with the Danish food 

producer Arla Foods Ingredients amba, 

was granted approval by the European 

Monopolies and Mergers Commission. 

SweetGredients is operating a pilot plant 

in Nordstemmen to optimise industrial 

Tagatose production and provide a basis 

for acceptance and potential analyses. 

The results will decide on the construction 

of a joint production plant in Denmark. 

In 2003, first sales were carried out 

in the USA. As expected, the financial 

year closed with a negative result of 

Euro 7.8 million, of which Nordzucker 

will bear a contractually fixed 50 percent. 

Tagatose – Sweetener with 

Attractive Properties 

Tagatose is a prebiotic, tooth friendly 

sweetener produced from lactose, making 

it safe for diabetics. In addition to being a 

low-calorie product, it also has special 

flavour enhancing properties. Its low 

glycemic index makes Tagatose an interesting 

product for the “low carb campaign” 

currently widely advertised in the 

United States. Tagatose has already been 

listed as a marketable product in the US 

and in Korea, Australia and New Zealand. 

This is not expected to be the case for 

Europe before 2006. 

Syral 

In June 2003, Nordzucker increased its 

participating interest in the French producer 

of starch saccharification products, 

Syral S.A., Marckolsheim, from 36 to 50 

percent. At the same time, the whollyowned 

Syral subsidiary Staral S.A. – up to 

that point a supplier of primary products 

– merged with Syral. This has successfully 

finalised the integration of Staral S.A. into 

Syral. Due to this development, the figures 

shown do not compare with those 

of the previous year. 

Positive Results 

Despite a slight drop in prices, Syral was 

able to improve its share in the European 

market further for starch saccharification 

products in the year under review. After 

expansion of the Syral facilities in 2002, 

production has been stabilised and the 

utilisation ratio has been much improved. 

A distinct increase in market share is 

reported for maltodextrin and sorbite. 

Altogether, sales rose by more than ten 

percent as compared with the previous 

year. The percentage of up-market products 

in relation to total sales has risen 

disproportionately, and this has had a 

clearly positive effect on the operating 

results. In the year under review, Syral 

posted a positive result of Euro 1.6 million. 

Amino 

Nordzucker GmbH & Co. KG continues 

to hold 50 percent stakes in both Amino 

and Norddeutsche Zucker-Raffinerie 

GmbH in Frellstedt. 

Results on the Previous Year’s Level 

Amino uses large-scale chromatography 

to produce sugar raw juice, amino acids, 

betaines, and other ingredients from 

sugar beet molasses. Amino acids from 

molasses and other substances are 



Risk Management 

cleaned to yield products of pharmaceutical 

quality, which are then sold on a 

global scale. As a result of the marked 

declassification for sugar in 2002, as well 

as a currency-related reduction of export 

income, turnover dropped by about five 

percent relative to the previous year, but 

lower raw material prices allowed the 

operating results to be maintained on the 

previous level. 

Amino’s wholly-owned subsidiary 

esparma GmbH,produces drugs for the 

sectors neurology, urology, pediatrics, 

and diabetics, in addition to pharmaceutical 

and cosmetic products. Despite the 

tight cost situation in the health care 

sector, turnover rose by eleven percent 

to more than Euro 18 million. Contract 

production and compounding of additional 

products allowed the economic 

performance to be improved significantly. 

Under the profit transfer agreement 

concluded with Amino, Euro 0.9 (0.6) 

million were transferred in fiscal 2003. 

For S. A. Bioproducts in South Africa, 

in which Amino holds 40 percent, the 

year 2003 was marked by a very good 

utilisation of production capacities and 

higher proceeds for feed amino acids, so 

that the financial year was a positive one. 

Pharmaceutical amino acid fermentation 

was also started successfully. 

Norddeutsche Zucker-Raffinerie 

GmbH purifies the sugar raw juice from 

Amino to produce liquid sugar and a 

number of specialised products. As a 

result of the declassification measures, the 

2002 turnover dropped by nine percent, 

while the operating result remained at 

the previous year’s level of Euro 0.4 million. 

Nordzucker has developed a companywide 

system of early risk identification 

and constant risk monitoring, including 

analysing and avoidance strategies. 

Possible risks are monitored in close 

coordination with the process managers 

concerned, using the instruments risk 

management and group controlling. 

Opportunity/risk analyses are performed 

on the basis of predetermined threshold 

values to develop the required alternative 

action. Our group reporting and controlling 

system serves as a source of continuous 

and, if required, ad-hoc information 

for all our decision makers. Regular market 

analyses and analyses of the competitive 

situation enable Nordzucker to spot 

major changes at an early stage and to 

initiate adequate measures. Annual risk 

stock taking as well as the results of internal 

audits provide for the required adjustments. 

The risk management system was 

included in the annual audit, which confirmed 

the efficiency of the system. 

Market Risks 

The Nordzucker response to the market 

risks that follow from the intensifying 

concentration in the European food retail 

and sugar processing industries are extensive 

activities directed at customer retention. 

This includes the development of 

new products, as well as a high standard 

of product quality. The system of process 

and product certification performed 

32

throughout the group documents the 

high significance Nordzucker attaches to 

quality production. 

Operating Risks 

The Nordzucker management system 

encompasses quality assurance, safety at 

work/health protection, and environmental 

management. To fully comply with 

our high internal standards and all legal 

requirements, auditing and certification 

is performed regularly on the basis of 

DIN EN ISO 9001 2000, DIN EN ISO 

14001, the EC environmental audit regulations 

761/2001 (EMAS II), as well as 

GMP 13 for feedstuffs. In 2003, the small 

packing locations were certified in compliance 

with the IFS Standard of the food 

trade. 

Financial Risks 

Nordzucker monitors carefully all currency, 

interest and liquidity risks. To safeguard 

liquidity, we are converting 

Nordzucker AG financing to a syndicated 

credit. At the same time we are preparing 

for Nordzucker AG rating and conversion 

of the accounting system for compliance 

with IFRS (International Financial Reporting 

Standards) and IAS (International 

Accounting Standards). This is to make 

sure that the requirements of external 

creditors can be fully met in the long run. 

To minimise currency risks we limit 

cash flows between our east European 

companies and Nordzucker AG to the 

absolute minimum. For the same purpose, 

the campaign and any investment 

programmes launched in Poland and 

Slovakia are financed locally. The loans 

raised for these purposes are increasingly 

Euro loans, since as from 1 May 2004 

both the sugar intervention prices and 

the beet prices are fixed in Euro. 

IT Risks 

Nordzucker applies the latest standards 

to safeguard the reliability of its EDP 

systems and data stocks. We also consistently 

use standard software and the 

same hardware throughout the company. 

This allows us to make use of innovative 

technology without any problems while 

rendering our complex EDP systems 

manageable. 

Political and Legal Risks 

The countries in which Nordzucker has 

either stakes or production facilities, and 

whose markets Nordzucker supplies with 

products became members of the European 

Union on 1 May 2004. Uncertainties 

remain with a view to the possible 

revision of the EU sugar market regulations 

as from the year 2006. Import 

options for the least developed countries 

in connection with the so-called EBA 

agreement are expected to have their 

repercussions, although the exact extent 

remains difficult to assess. Not certain are 

neither the outcome of the WTO negotiations 

nor of the complaint by Brazil, 

Thailand and Australia about EU tariffs 

(WTO panel). For the time being it is not 

possible to make an appraisal of the consequences 

this will have for Nordzucker. 



Outlook 

Our chief objective for the year 

2004/2005 will be the consolidation 

of our operations as well as the 

strategic orientation of the company 

with the aim of consolidating our core 

activities in the long run. With the accession 

of ten new member states to the 

European Union on 1 May 2004, and the 

gradual coming into force of the EU 

sugar market regulations in these countries, 

it will be essential for us to proceed 

with the integration of our commitments 

in Poland, Slovakia and Hungary into 

the Nordzucker AG organisation. To be 

able to maintain the earning capacity of 

the company, we aim at a long-term and 

organic growth. We see growth potential 

for our core activities in the sugar sector, 

but also for a market- and customeroriented 

expansion of our competence 

in sweetening products. Starch saccharification 

products and Tagatose are first 

steps in this direction. 

EU Beet Cultivation and Sugar 

Production Must Remain Profitable 

Much of our attention is being directed 

at developments in the agricultural 

reforms that are at the present up for 

discussion. In addition to the agreed 

opening for imports from the least developed 

countries (LDC) and the WTO 

negotiations which are still pending, other 

uncertainties surround the legal action 

brought by Brazil, Thailand and Australia 

against certain sugar exports of the 

European Union (WTO panel). The 

European sugar industry together with 

politicians from all member states are 

called on to arrive at appropriate and 

reasonable solutions. Our joint efforts 

have to be directed at maintaining the 

profitability of beet cultivation and sugar 

production in the EU. While the EU 

Commission favoured price reductions 

and tariff protection in the beginning, 

there is now a tendency to prefer quotas 

for all involved. The first tentative decisions 

are expected for early 2005. 

Restructuring Programme in East 

Europe Due to be Finalised 

In March 2004 we decided to discontinue 

beet processing in the sugar factory 

Hatvan in Hungary. After the closure 

of the Trnava plant in Slovakia after the 

2004 campaign, our eight Nordzucker 

factories in Germany, two sugar factories 

each in Poland and Hungary, as well as 

one factory in Slovakia provide a sound 

basis for competing for markets and customers 

in the expanded European Union. 

Much of the future developments will 

depend on the revised contents of the 

EU sugar market regulations. 

Changed Beet Flows 2004 

The closure of the Schleswig factory will 

reduce the overall processing capacity of 

Nordzucker AG to some 90,000 (97,000) 

metric tons of beets per day of the campaign. 

As with previous plant closures, 

this reduction will also affect the catchment 

area for the remaining factories. 

For this reason alone we expect the 2004 

34

For this reason alone we expect the 2004 

campaign to be longer by about seven 

days for all the factories in the north of 

Germany. 

In view of the strong Euro, low world 

market prices for C sugar and molasses, 

as well as a satisfactory price level for 

pellets, we do not expect any significant 

changes for the proceeds situation in the 

financial year 2004/2005. Although all 

the EU accession countries start from a 

completely different set of circumstances, 

we assume that sugar prices will be 

harmonised within a relatively short time. 

In Hungary, adjustment expenditure 

after the closure of the Hatvan factory 

will reduce the result, but altogether we 

expect the consolidated annual surplus 

to rise after the negative results in eastern 

Europe have been overcome. 

After the close of the financial year 

2003/2004, there have been no incidents 

of decisive importance for the assets, 

finances and revenue of Nordzucker AG 

and the group. 


The Managing Board

Annual Financial Statement Nordzucker AG 

I. Balance Sheet 

Assets 

A. Fixed Assets 

I. Intangible Assets 

Rights of use and similar rights 

II. 

Property, Plant & Equipment 

1. Land and buildings 

2. Technical equipment, plant and machines 

3. Other equipment, fixtures and fittings 

4. Advance payments and construction in progress 

III. Financial Assets 

1. Shares in affiliated companies 

–. Advance payments on shares in affiliated companies 

2. Loans to affiliated companies 

3. Investments 

4. Loans to companies in which an interest is held 

–. Security investments 

5. Other loans 

B. Current Assets 

I. Land Earmarked for Sale 

II. Inventories 

1. Operating supplies 

2. Finished goods and merchandise 

III. Receivables and Sundry Assets 

1. Trade receivables 

2. Receivables from affiliated companies 

3. Receivables from companies in which an interest is held 

4. Other assets 

IV. Other Securities 

V. Cash at Hand and Cash at Banks 

C. Prepaid Expenses 

I. Debt Discount 

II. Other 

–. Special loss account from reserves 

persuant to Section 17 para. 4 DMBilG 

29-02-2004 

in t thous 

4,007 

195,638 

156,694 


4,955 

364,391 

129,951 

0 

25,834 

60,475 

11,590 

0 

354 


596,602 

2,064 

13,782 

331,942 

345,724 

50,167 

27,397 

3,220 

13,538 

94,322 

472 

6,246 

448,828 

92 

18 

110 

0 

1,045,540 


in t thous 

1,280 

174,663 

149,696 

5,778 

9,357 

339,494 

26,136 

97 

32,192 

50,324 

12,102 

100 

481 

121,432 

462,206 

1,905 

11,308 

285,022 

296,330 

2,899 

57,429 

12,745 

18,202 

91,275 

376 

59,800 

449,686 

121 

38 

159 


914,055 

36

Liabilities 

A. Equity Capital 

I. Subscribed Capital (share capital) 

II. Capital Reserves 

III. Earnings Reserves 

1. Special reserve pursuant to Section 17, para. 4 DMBilG 

2. Other earning reserves 

IV. Net income 

B. Special Items 

I. Investment Grants for Fixed Assets 

II. Tax-Allowable Reserve 

(Value adjustment for plant and equipment 

due to special depreciation) 

C. Provisions 

1. Provisions for pensions and similar obligations 

2. Accrued taxes 

3. Other provisions 

D. Liabilities 

1. Due to banks 

2. Trade accounts payable 

3. Due to affiliated companies 

4. Due to companies in which an interest is held 

5. Other liabilities 

thereof for taxes: in t thous. 6,401 (previous year: in t thous. 4,482) 

thereof for social security: in t thous. 1,710 

(previous year: in t thous. 1,481) 


in t thous 

117,531 

112,833 

0 




358,926 

7,524 

83,520 


114,140 

19,874 

128,502 

262,516 

141,696 

152,869 

5,959 

10,383 

22,147 

333,054 


in t thous 

101,765 

99,489 


77,582 

79,586 

22,897 


8,286 

94,253 

102,539 

99,580 


121,839 

241,322 

92,773 

145,118 

4,827 

5,616 

18,123 

266,457 

1,045,540 

914,055 



II. Assets Analysis 

Acquisition and 

Production Costs 

In t thous 

As 1 March 2003 Additions by Additions 

asset transfer/ 

accretion 


(Rights of use and similar rights) 4,191 875 3,247 

II. 

Tangible Assets 

1. Land and buildings 301,999 50,816 4,870 

2. Technical equipment, plant and machines 1,053,968 165,122 24,384 

3. Other equipment, fixtures and fittings 37,676 6,680 3,124 

4. Advance payments and construction in progress 9,357 1,538 3,312 

1,403,000 224,156 35,690 


1. Shares in affiliated companies 115,202 1,747 105,050 

–. Advance payments on shares in affiliated companies 97 0 0 

2. Loans to affiliated companies 33,282 1,909 7,650 

3. Investments 52,466 13 10,157 

4. Loans to companies in which an interest 

is held 12,102 0 0 

–. Security investments 100 0 0 

5. Other loans 483 94 0 

213,732 3,763 122,857 

Totals 1,620,923 228,794 161,794 

Write-ups with an effect on income (gains in value) were recorded for shares in affiliated companies 

(Tt 3,671). They were offset against accrued write-downs. 

38

Accrued 

Write-downs 

Book value 

Depreciation 

Transfers Disposals As 29 Feb. 2004 As 29 Feb. 2004 As 29 Feb. 2004 As 1 Mar. 2003 

670 46 8,937 4,930 4,007 1,280 1,243 

729 12,745 345,669 150,031 195,638 174,663 15,002 

7,313 60,798 1,189,989 1,033,295 156,694 149,696 50,900 

33 3,449 44,064 36,960 7,104 5,778 2,703 

-8,745 507 4,955 0 4,955 9,357 0 

-670 77,499 1,584,677 1,220,286 364,391 339,494 68,605 

116 18,796 203,319 73,368 129,951 26,136 0 

-97 0 0 0 0 97 0 

0 17,007 25,834 0 25,834 32,192 438 

-19 15 62,602 2,127 60,475 50,324 0 

0 512 11,590 0 11,590 12,102 0 

0 100 0 0 0 100 0 

0 223 354 0 354 481 0 

0 36,653 303,699 75,495 228,204 121,432 438 

0 114,198 1,897,313 1,300,711 596,602 462,206 70,286 



III. Statement of Income 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

12. 

13. 

14. 

15. 

16. 

–. 

17. 

18. 

19. 

20. 

21. 

22. 

Sales 

less market regulation levies 

Increase in finished goods 

Other own costs capitalised 

Other operating income 

Cost of materials 

a) Cost of raw materials and supplies and for 

goods purchased 

b) Cost of services purchased 

Personnel expenses 

a) Wages and salaries 

b) Social security, pensions and other benefit costs 

Depreciation on intangible assets, and plant and equipment 

Other operating expenses 

Income from participating interests 

Income from other securities and loanss 

Other interest and similar income 

Depreciation on financial assets 

Expenditure for assumption of losses 

Interest and similar expenses 

Profit form ordinary operations 

Write-down on special loss account from reserves pursuant to 

Section 17, para. 4 DMBilG 

Extraordinary income/extraordinary result 

Taxes on income 

Other taxes 

Net income 

Profit brought forward 

Transfers to other retained earnings 


01-03-2003 – 


int thous. 

936,328 

79,653 

856,675 

41,795 

145 

55,716 

954,331 

614,013 


632,059 

322,272 

75,114 

26,671 

101,785 

69,848 

65,008 

236,641 

85,631 

3,089 

1,088 

955 

438 

2,146 

6,375 

-3,827 



0 

27,880 


28,912 

50,888 

15 

25,400 


Previous year 

in t thous. 

863,310 

70,082 

793,228 

34,839 

147 

42,628 

870,842 

568,411 

21,620 


280,811 

71,717 


92,752 

65,673 

47,972 

206,397 

74,414 

2,553 

2,660 

3,865 

85,482 

1,347 

7,050 

-84,801 

10,387 

0 

90,432 

31,277 

3,010 

34,287 

45,758 

9 

22,870 

22,897 

40

IV. Statement of Cash Flows 

Net income 

Changes in property, plant and equipment 

Changes in financial assets 

Changes in long-term provisions 

Profit from mergers 

Other expenditures/income with cash effect 

(amendments, special items, special loss account) 

Changes in finished goods 

Cash flow according to DVFA 

in t mill. 

+50.9 

+69.8 

-3.2 

+8.8 

0.0 

-15.7 

-16.3 

+94.3 

Previous year 

in t mill. 

+45.8 

+65.5 

+84.5 

+5.1 

-90.4 

-18.0 

+6.5 

+99.0 

Changes in short-term reserves 

Result of disposals of property, plant and equipment 

Changes in inventories, receivables and other assets not assigned 

to investing and financing activities 

Changes in trade payables and other liabilities not assigned to investing 

and financing activities 

Cash flow from operating activities 

-13.4 

+0.8 

+5.5 

-17.7 

+69.5 

-20.4 

-1.9 

+86.2 

-81.9 

+81.0 

Proceeds from retirements of tangible assets 

Investments in tangible assets 

Investments in intangible assets 

Proceeds from retirements of financial assets 

Investments in financial assets 

Cash flow from investing activities 

+2.3 

-35.7 

-3.2 

+22.1 

-122.8 

-137.3 

+4.0 

-54.5 

-0.5 

+15.8 

-34.1 

-69.3 

Equity changes 

Dividend 

Changes in amortisation/borrowings 

Cash flow from financing activities 

+11.5 

-19.5 

+22.1 

+14.1 

0.0 

-29.8 

-21.6 

-51.4 

Changes in cash and cash equivalents 

Cash and cash equivalents at the beginning of the period 

Additions through mergers/other changes 

Cash and cash equivalents at the end of the period 

-53.7 

+59.8 

+0.1 

+6.2 

-39.7 

+99.5 

0.0 

+59.8 


Annual Statement Nordzucker Group 

I. Balance Sheet 

Assets 

A. Fixed Assets 


–. Rights of use and similar rights 

–. Goodwill 

II. 

Property, Plant & Equipment 

1. Land and buildings 

2. Technical equipment, plant and machines 

3. Other equipment, fixtures and fittings 

4. Advance payments and construction in progress 


1. Shares in affiliated companies 

–. Advance payments on shares in affiliated companies 

2. Investments 

3. Investments in affiliated companies 

–. Loans to companies in which an interest is held 

4. Loans to affiliated companies 

5. Security investments 

6. Other loans 


in t thous. 

6,159 

0 

6,159 

238,858 

205,579 

10,668 


464,108 


0 


30,394 

0 

11,591 

32 

432 

63,455 

533,722 


in t thous. 

2,564 

7 

2,571 

199,711 

177,891 

8,829 

11,363 

397,794 

234 

97 

51,012 

6,153 

7,500 

4,602 

118 

547 

70,263 

470,628 

B. Current Assets 

I. Land Earmarked for Sale 

II. Inventories 

1. Operating supplies 

2. Unfinished goods 

3. Finished goods and merchandise 

4. Advance payments 

III. Receivables and Sundry Assets 

1. Trade receivables 

2. Receivables from affiliated companies 

3. Receivables from companies in which an interest is held 

4. Other assets 

IV. Other Securities 

V. Cash at Hand and Cash at Banks 

C. Prepaid Expenses 

I. Debt Discount 

II. Other 

–. Special Loss Account from Reserves 

pursuant to Section 17, para. 4 DMBilG 

2,110 

22,133 

819 

437,454 

43 

460,449 

63,572 

59 

2,550 

28,428 

94,609 

472 

33,100 

590,740 

135 

523 

658 

0 

1,125,120 

1,905 

17,213 

792 

358,838 

140 

376,983 

46,699 

66 

14,023 

34,233 

95,021 

376 

75,589 

549,874 

174 

183 

357 


1,022,863 

42

Liabilities 

A. Equity Capital 

I. Subscribed Capital (share capital) 

II. Capital Reserves 

III. Earnings Reserves 

–. Special reserve pursuant to Section 17, para. 4 DMBilG 

–. Other earning reserves 

IV. Adjustment Item for Currency Disparities 

V. Loss Brought Forward 

VI. Net Consolidated Income 

VII. Adjustment Item for Minority Interests 


in t thous 

117,531 

112,833 

0 

75,145 

75,145 

-1,913 

1,878 

23,347 

4,983 



in t thous 

101,765 

99,489 


61,098 

63,102 

624 

8,692 

26,357 

13,336 

295,981 

B. Special Items 

–. Investment Grants for Fixed Assets 

–. Tax-Allowable Reserve 

(Value adjustment for plant and equipment due 

to special depreciation) 

C. Provisions 

1. Provisions for pensions and similar obligations 

2. Accrued taxes 

3. Other provisions 

7,524 

0 

7,524 

120,434 

54,175 

138,898 

313,507 

8,290 

94,253 

102,543 

106,385 

20,526 

135,244 

262,155 

D. Liabilities 

1. Due to banks 

2. Advance payments on orders 

3. Trade accounts payable 

–. Accepting drawn bills 

Issuing own bills 

4. Due to affiliated companies 

5. Due to companies in which an interest is held 

6. Other liabilities 

thereof for taxes: in t thous. 8,508 (previous year: in t thous. 9,214) 

thereof for social security: in t thous. 2,582 

(previous year: in t thous. 2,723) 

E. Deferred Income 

264,629 

756 

170,598 

0 

250 

10,383 

27,137 

473,753 

288 

161,384 


164,890 

308 

990 

5,616 

28,193 

362,184 

0 

1,125,120 

1,022,863 



II. Assets Analysis 

Acquisition and 

Production Costs 

As 1 March 2003 Additions by asset Additions 

transfer/accretion- 

In t thous. 


1. Rights of use and similar rights 8,177 2,417 3,685 

2. Goodwill 53 0 0 

8,230 2,417 3,685 

II. Tangible Assets 

1. Land and buildings 364,011 66,870 11,308 

2. Technical equipment, plant and machines 1,159,116 195,895 35,562 

3. Other equipment, fixtures and fittings 49,690 7,905 4,615 

4. Advance payments and construction in progress 11,368 3,334 13,510 

1,584,185 274,004 64,995 


1. Shares in affiliated companies 519 867 2,038 

–. Advance payments on shares in affiliated companies 97 0 0 

2. Investments 60,931 -77 10,157 

3. Investments in affiliated companies 6,153 -18,164 3,773 

–. Loans to companies in which an interest 

is held 7,500 0 0 

4. Loans to affiliated companies 4,602 0 0 

5. Security investments 244 -7 4 

6. Other loans 1,903 46 167 

81,949 -17,335 16,139 

Totals 1,674,364 259,086 84,819 

Write-ups with an effect on income (gains in value) were recorded for intangible and tangible assets 

(Tt248) as well as for security investments (Tt45). They were offset against accrued write-downs. 

44

Accrued 

Write-downs 

Book value 

Depreciation 

Transfers Disposals As 29 Feb. 2004 As 29 Feb. 2004 As 29 Feb. 2004 As 1 Mar. 2003 

1,608 192 15,695 9,536 6,159 2,564 2,114 

0 53 0 0 0 7 7 

1,608 245 15,695 9,536 6,159 2,571 2,121 

2,684 14,444 430,429 191,571 238,858 199,711 18,580 

11,712 65,447 1,336,838 1,131,259 205,579 177,891 62,776 

340 4,826 57,724 47,056 10,668 8,829 4,599 

-16,344 2,636 9,232 229 9,003 11,363 244 

-1,608 87,353 1,834,223 1,370,115 464,108 397,794 86,199 

568 2,108 1,884 981 903 234 294 

-97 0 0 0 0 97 0 

-40,989 44 29,978 9,875 20,103 51,012 0 

40,518 1,886 30,394 0 30,394 6,153 0 

-7,500 0 0 0 0 7,500 0 

7,500 511 11,591 0 11,591 4,602 0 

0 130 111 79 32 118 45 

0 330 1,786 1,354 432 547 0 

0 5,009 75,744 12,289 63,455 70,263 339 

0 92,607 1,925,662 1,391,940 533,722 470,628 88,659 



III. Statement of Income 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

12. 

13. 

14. 

15. 

16. 

17. 

18. 

19. 

20. 

21. 

Sales 

less market regulation levies 

Increase (previous year reduction) in finished goods 

Other own costs capitalised 

Other operating income 

Cost of materials 

a) Cost of raw materials and supplies and for 

goods purchased 

b) Cost of services purchased 

Personnel expenses 

a) Wages and salaries 

b) Social security, pensions and other benefit costs 

Depreciation on intangible assets, and plant and equipment 

Other operating expenses 

Income from participating interests 

Profit from associated companies 

Income from other securities and loans 

Other interest and similar income 

Depreciation on financial assets 

Interest and similar expenses 

Profit form ordinary operations 

Write-down on special loss account from reserves pursuant to Section 17, 

para. 4 DMBilG 

Taxes on income 

Other taxes 

Net income 

Proportion of profit to non-group shareholders 


01-03-2003 – 


in t thous. 

1,253,992 

81,425 

1,172,567 

37,812 

705 

54,307 

1,265,391 

824,128 

23,886 

848,014 

417,377 

106,668 

34,267 

140,935 

88,320 

126,449 


61,673 

22 

1,698 

399 

1,281 

339 

13,928 

-10,867 

50,806 


23,677 

3,011 

26,688 

22,114 

-1,233 

23,347 

Previous year 

in t thous. 

1,146,270 

70,083 

1,076,187 

1,770 

935 

49,479 

1,124,831 

721,957 

30,161 

752,118 

372,713 

99,619 

27,116 

126,735 

77,862 

96,492 

301,089 

71,624 

1,401 

327 

633 

4,895 

1,027 

12,000 

-5,771 

65,853 

0 

32,960 

4,645 

37,605 

28,248 

1,891 

26,357 

46

IV. Statement of Cash Flows 


(including share of profit of minority shareholders) 

Changes in property, plant and equipment 

Changes in financial assets 

Changes in long-term provisions 

Other expenditures/income with cash effect 

(amendments, special items, special loss account) 

Changes in unfinished and finished goods 

Cash flow according to DVFA 

Changes in short-term reserves 

Result of disposals of property, plant and equipment 

Changes in inventories, receivables and other assets not assigned 

to investing and financing activities 

Changes in trade payables and other liabilities not assigned to 

investing and financing activities 

Cash flow from operating activities 

Proceeds from retirements of tangible assets 

Investments in tangible assets 

Proceeds from intangible assets 

Investments in intangible assets 

Proceeds from retirements of financial assets 

Investments in financial assets 

Investments in the acquisition of consolidated companies 

Cash flow from investing activities 

Equity changes 

Dividend 

Payments to minority shareholders 

Changes in amortisation/borrowings 

Cash flow from financing activities 

Changes in cash and cash equivalents 

Cash and cash equivalents at the beginning of the period 

Additions through mergers/other changes 

Cash and cash equivalents at the end of the period 

in t mill. 

+22.1 

+88.1 

+0.3 

+8.1 

+0.5 

-12.3 

+106.8 

-22.4 

-1.4 

+26.0 

-21.8 

+87.2 

+6.5 

-65.0 

0.0 

-3.6 

+4.9 

-5.8 

-68.2 

-131.2 

+11.5 

-19.5 

0.0 

+9.3 

+1.3 

-42.7 

+75.6 

+0.2 

+33.1 

Previous year 

in t mill. 

+28.2 

+78.7 

+0.0 

+9.2 

-18.0 

+1.8 

+99.9 

-22.3 

-1.7 

+20.2 

-18.7 

+77.4 

+5.0 

-65.0 

+0.1 

-0.8 

+35.4 

-16.9 

-15.4 

-57.6 

0.0 

-29.8 

-0.1 

-32.2 

-62.1 

-42.3 

+114.1 

+3.8 

+75.6 


Notes 

1. General 

Both the annual and the consolidated 

statement for Nordzucker AG published 

29 February 2004 have been drawn up in 

accordance with accounting regulations 

governed by German commercial law. 

The provisions of the German Stock Companies 

Act have also been adhered to. The 

details presented below provide explanations 

on the two Nordzucker AG reports 

together; unless indicated otherwise, comments 

and statements apply to both. 

In the interest of clarity, legally required 

comments on items listed in the 

balance sheet and in the statement of 

income of the Nordzucker annual report 

are largely to be found in the Notes. The 

methods of classification and the principles 

of identification and valuation introduced 

last year are continued in this 

report. Should it prove necessary to 

depart from last year’s system, a separate 

explanation will be given. 

The statement of income is drawn up 

from all group companies in line with the 

total expenditure format. 

In the statement of income, EU sugar 

market regulations levies have been 

deducted from sales revenues to give 

greater informational value through the 

separate reduction of these transitory 

levies. The imposition of these levies 

bears no reflection on actual corporate 

performance. 

Comparing the figures in the annual 

report 2003/04 with the individual financial 

statements of the previous year, we 

can see that Union-Zucker Südhannover 

GmbH in Nordstemmen transferred nearly 

all assets and liabilities to book values 

in exchange for the granting of corporate 

status. Union-Zucker operated a sugar 

factory in Nordstemmen which will continue 

to be operational. 

Furthermore, and in connection with 

this, commercial operations which last 

year were processed by Nordzucker 

GmbH & Co. KG were integrated into 

Nordzucker AG with effect from 1 January 

2004. In particular, inventories were transferred 

to Nordzucker AG from this date. 

As a consequence of the transactions 

carried out above and to facilitate a comparison 

between both annual reports of 

Nordzucker AG, the following changes 

are given for significant report items: 

Additions through fusion/merger, 

or integration of commercial operations 

(book value) for 

(in t million) 

Tangible assets 61.6 

Financial assets 2.8 

Inventories 30.3 

Accounts receivable 

and other assets 10.2 

Special item 5.3 

Reserves 24.2 

Trade payables 

and other obligations 59.8 

2. Currency Translation 

Currency receivables are translated at the 

bank’s selling rate on the date transacted 

or at a lower rate on the balance sheet 

date, currency obligations at the bank’s 

buying rate on the date transacted or at 

a higher rate on 29 February 2004. 

Assets and liabilities for foreign subsidiaries 

in the consolidated statement are 

translated at the middle rate on the 

balance sheet date, while items in the 

income statement are generally translated 

at the average middle rate for the 

year. Currency disparities arising from 

equity capital translations at the time 

recognition in the consolidated statement 

are treated as not affecting net 

48

income and allocated to equity capital or 

the adjusting item for minority interests. 

3. Scope of Consolidation 

The companies to be consolidated include 

all subsidiaries in which we have a 

direct or indirect controlling interest 

following the principle of full consolidation, 

in as far as they are not of marginal 

significance. At the date of the AG’s 

report, financial statements of a total of 

15 German and 17 international companies 

were included. SweetGredients 

GmbH & Co. KG, Nordstemmen/ 

Germany, Promyk Sp.z o.o.o, Przezmierowo/Poland, 

Szerensci Cukorgyár Rt., 

Szerencs/Hungary, Mátravidéki Cukorgyárak 

Rt., Hatvan/Hungary, Szolnoki 

Cukorgyár Rt., Szolnok/Hungary all appear 

in the consolidated report for the 

first time. One German company was 

lost to accretion. 

The consolidated statement of Amino 

GmbH, Frellstedt/Germany as well as the 

financial statement of Norddeutsche 

Zucker-Raffinerie GmbH, Frellstedt/Germany 

are included in the consolidated 

statement, unamended in accordance 

with the equity method. Furthermore, 

the financial statement of Syral S.A. 

Marckolsheim/France was included in 

the consolidated statement also in accordance 

with the equity method. 

Due to their relative marginal significance 

in regard to the asset, financial and 

profit situation ten German and ten international 

companies were not included in 

the consolidated statement. 

The register of share ownership has 

been deposited at the Commercial 

Registry of the district court in Braunschweig 

under HRB 2936. 

4. Consolidation Methods 

In consolidating the companies involved, 

the following statements were incorporated: 

• one company reporting on 

29 February 2004 

• 30 companies reporting on 

31 December 2003 

• one company reporting on 

30 September 2003 

Transactions of particular significance for 

the asset, financial and profit situation of 

companies with a reporting date differing 

from the consolidated reporting date 

which were effected between the company’s 

own reporting date and 29 February 

2004 were taken into account. 

For fully consolidated companies and 

companies consolidated at equity, consolidation 

of investments was carried out in 

line with the book value method. This 

proportionally allocates acquisition costs 

relative to the group’s share of equity capital 

in the holding company at the time of 

first inclusion in the consolidated statement, 

or at the acquisition of this equity. 

In accordance with Section 309, 

para. 1, sentence 3 of the German Commercial 

Code, debit differences on the 

assets side are to be balanced against 

differences on the liabilities side and 

offset against other retained earnings. 

Differences identified in fully consolidated 

companies and companies consolidated 

at equity have developed as follows 

for the year under review: 

Asset side Liability side 

in t thous. in t thous. 

as 1 Mar. 2003 91,081 30,197 

Amendment 24,639 32 

as 29 Feb. 2004 115,720 30,229 


Notes 

Following the book value method (Section 

312, para. 1, No. 1 of the Commercial 

Code), equity consolidations for the 

subgroup statement of Amino GmbH, 

Frellstedt/Germany results in debit differences 

on the liabilities side of Tt * 3,618 

and for Nordeutsche Zucker-Raffinerie 

GmbH, Frellstedt/Germany of Tt 145. 

For Syral S.A., Marckolsheim/ France a 

debit difference on the assets side of 

Tt 19,910 (first consolidated reporting 

date, 1 October 2002). 

Interim results of non-marginal significance 

have been eliminated from the 

consolidated statement in line with Section 

304 Commercial Code. We have 

abstained from eliminating interim results 

of associated companies, according to 

Section 312, para. 5. 

Sales, expenditures and earnings, 

accounts receivable and obligations between 

fully consolidated companies have 

been zeroed out. There has been no 

charging of third-party debtor relations. 

The assets and liabilities of companies 

included transferred in the consolidated 

statement are uniformly balanced in line 

with the principles described below. 

5. Notes on Balance Sheet Items 

The intangible assets acquired for payment 

are shown at cost less straight-line 

depreciation, assessed in accordance with 

their standard estimated useful life. 

Tangible assets are shown at acquisition 

or production cost. In addition to 

directly attributable production costs, 

assets manufactured in-house are also 

assigned a costing supplement according 

to taxation-related valuation regulations. 

Interest attributable to the period of pro- 

duction is not entered on the assets side. 

In as far as tangible assets have a 

limited useful life, they are depreciated at 

annual rates estimated to write off their 

costs over their estimated useful life. The 

useful life is assessed on the basis of fiscal 

regulations, as long as generally useable 

assets are affected. 

Scheduled depreciation – where 

allowed – principally follows the declining 

balance method of depreciation. We 

have also exercised the option of transferring 

from declining to straight-line 

depreciation. Further, for acquisitions 

made before 1 January 2004, we have 

drawn on directive 44 of the income tax 

regulations, which simplifies some depreciation 

procedures (full depreciation rate 

for assets acquired in the first six months 

of the year, half the rate for acquisitions 

made in the second half of the year). For 

acquisitions made after 31 December 

2003, depreciation is made proportionally 

in line with the new, changes regulations. 

The effects of this are of marginal significance. 

Low-valued assets are written off 

in full in the year of their acquisition and 

are entered as retirements after five years. 

Unplanned depreciation is effected using 

anticipated and sustained loss of value. 

In 2003/2004, Nordzucker AG posted Tt 

4,888 – the group Tt 6,852 – to such 

adjustments attached to lower values. 

In taking advantage of taxation concessions 

in Germany, in previous years we 

have carried out special write-downs in 

accordance with Section 4 of the development 

area law (for the new Bundesländer), 

Section 3 of the law promoting 

government aid to border regions, 

Section 6b of the income tax law (on 

transferring profit from sales) and direc- 

50 

* Tt = thousand Euros

tive 34 of the income tax regulations (on 

grants). These were shown as depreciation 

reserves on tangible assets in 

“special reserves”. Accordingly, the asset 

history sheet only shows scheduled and 

(in the case of lasting value losses) 

unplanned depreciation. In 2003/04, taxrelated 

special write-downs of Tt 1,130 

were carried out at Nordzucker AG, 

which were based on the transfer of hidden 

reserves in accordance with Section 

6b of the income tax law. 

In as far as they have not been attached 

lower values due to sustained loss of 

value in 2003/04 or in previous years, 

financial assets are valued at acquisition 

cost. 

Investments in associated companies 

in the individual financial statements 

concern interest-bearing and non-interestbearing 

loans. 

The development of the fixed assets 

of Nordzucker AG and of the group can 

be seen in the analysis of assets of pages 

38/39 and 44/45. 

Operating supplies and goods are 

valued at their average acquisition costs 

or the lower exchange or market price. 

Devaluation allowances are made for 

stock risks arising from lengthy storage, 

limited utilisation, etc. 

Sugar stocks from our own production 

listed under finished products are 

valued at production cost unless, following 

the principles of loss-free valuation 

for sugar or sugar by-products, it has 

been necessary to allocate a lower value 

in respect of the revenues received. In 

addition to directly attributable costs 

incurred in manufacture, production 

costs also comprise a proportion of overheads 

assigned to production and consumption-related 

depreciation. Fiscal 

regulations are applied in respect of 

calculating imputed costs. Interest 

attributable to borrowed capital is not 

included in the costs of production. 

‘Properties for sale’ includes certain 

undeveloped and developed real estate 

up for sale. 

Receivables are shown at their face 

value. Allowances for losses on individual 

receivables have been endorsed as bad 

debts. A lump-sum allowance is provided 

for the latent risk of default. 

‘Other assets’ primarily comprises 

reimbursements for out-of-pocket 

expenses and claims in connection with 

power generation. The item also includes 

receivables relating to claims submitted 

for tax rebates. 

With the exception of Tt 752 at 

Nordzucker AG and Tt 1,447 in the 

group, all accounts receivable have a 

remaining time of less than one year. 

The special loss account from reserves 

in pursuant to Section 17, para. 4 

DMBilG, the law on assessing capital 

values of items initially entered in deutschmarks, 

has been fully written off in this 

fiscal year. The similarly named reserves 

in the balance sheet were exhausted/ 

closed in the current year. 

As of 29 February 2004, subscribed 

capital (capital stock) amounted to 

Tt 117,531, divided into 45,910,493 

registered individual share certificates with 

restricted transferability. In the year under 

review, in a capital increase from authorised 

capital 6,588,093 new shares were 

issued. The premiums received from this 


Notes 

capital increase of Tt 13,344 are shown in 

capital reserves. In accordance with Sections 

237 ff. of the Company Law, a total 

of 429,400 shares at a nominal value of 

t 1,099,264 were bought back at a price 

of t 14,83 per share. The book value difference 

of t 5,267,664.50 was offset against 

other retained earnings. At a nominal value 

of t 39,680.00, 15,500 company-owned 

shares were sold. This brought about a loss 

of t 353,914.29. Given the consent of the 

supervisory board, the managing board is 

authorised to increase capital stock 

t 46.3m (authorised capital). The net profit 

for the year contained a profit brought 

forward from the previous year of 

t 14,181.19. 

In the year under review, the special 

reserves in pursuant to Section 17, 

para. 4 DMBilG were allocated to other 

retained earnings. 

A resolution passed by the general 

meeting approved transfer of an additional 

Tt 3,340 from the Nordzucker AG 

annual surplus of the previous year to 

other retained earnings. From this year’s 

annual surplus, Tt 25,400 was transferred 

to other retained earnings. 

Consolidated equity capital developed 

in line with table 1 below. The special 

item for investment grants concerned 

several benefits in the current and the 

previous year from individual support 

programmes. 

The amounts given in the table below 

for Nordzucker AG show the assets allowance 

listed as a special reserve and 

declared in accordance with Section 281 

Commercial Code which are subject to 

special depreciation. 

German source 

(in t mill.) 

Section 3 ZFRG 16,777 

Section 4 FördergebietsG 33,652 

Section 6b EStG 31,716 

Directive 35 EStR 798 

Sections 7b and 7d EstG, KonjVO 577 

83,520 

Both special items will be dissolved 

when the amounted depreciated under 

commercial law exceeds the values allowance 

under taxation law. 

For the first time in the consolidated 

statement, special items set aside in previous 

years in line with taxation regulations 

can no longer be transferred (Sec- 

Table 1 

Consolidated equity capital 

(in t thous.) 1 Mar. 2003 Capital Capital Difference Annual Dividend Sundry 29 Feb. 2004 

increase buy back result 

Subscribed capital (share capital) 101,765 16,865 -1,099 117,531 

Capital reserves 99,489 13,344 112,833 

Retained earnings 

Special reserves (in accord. with Sec. 17, para. 2,004 -2,004 0 

Other retained earnings 

4 DMBilG) 

61,098 -5,268 -42,441 61,756 75,145 

63,102 -5,268 -42,441 59,752 75,145 

Adjustment item for currency disparities 624 -2,537 -1,913 

Loss brought forward -8,692 -19,543 26,357 -1,878 

Consolidated annual surplus 26,357 23,347 -26,357 23,347 

Adjustment item for minority interests 13,336 -1,233 -7,120 4,983 

295,981 30,209 -6,367 -42,441 22,114 -19,543 50,095 330,048 

52

tion 308, para. 3 Commercial Code). 

They have been partially re-classified as 

reserves for deferred tax liabilities (depending 

on the tax rate for Nordzucker AG) 

with the remaining amount classed as 

retained earnings. 

Provisions have been set aside in line 

with reasonable commercial assessment 

and comprise all recognisable risks and 

uncertain liabilities. 

Provisions for pensions and similar 

obligations are founded on insurancerelated 

calculations based on an interest 

rate of 6% and the mortality tables from 

1998. They correspond fully with the 

going values. 

Tax provisions comprise unpaid taxes 

for 2003/2004 and for previous years as 

well as Tt 33,646 (consolidated) for 

deferred tax liability. 

Other provisions include the following 

amounts for Nordzucker AG and for 

the group: 

AG 

(in t thous.) 

Group 

(in t thous.) 

Market regulation levies 78,278 78,278 

Obligations to staff (including early retirement/ 

severance payments, residual leave) 33,882 39,310 

Deferred maintenance and repair 5,991 7,064 

Measures for re-cultivation and waste disposal, 

removal expenses 3,261 3,337 

Entries for provisions for deferred 

maintenance and repairs have been carried 

out in accordance with Section 249, 

para. 1, sentence 2, No. 1 Commercial 

Code. 

Obligations are shown at their 

redemption value. In as far as the 

amount advanced by borrowings is 

below the redemption value, the difference 

is recorded in accrued items 

(discounts) and reduced in line with 

the redemption amount. 


Notes 

Nordzucker AG Obligations (in t thous.) 

The following schedules show the 

maturities of obligations: 

29 February 2004 With a remaining time of 

less than 1–5 more than 

one year years 5 years 

1. Due to banks 141,696 97,428 36,940 7,328 

2. Trade payables 152,869 152,869 0 0 

3. Due to associated companies 5,959 5,959 0 0 

4. Due to companies in which 

we have an equity interest 10,383 10,383 0 0 

5. Other obligations 22,147 22,034 6 107 

333,054 288,673 36,946 7,435 

Group Obligations (in t thous.) 

29 February 2004 With a remaining time of 

less than 1–5 more than 

one year years 5 years 

1. Due to banks 264,629 218,781 38,520 7,328 

2. Deposits received 756 756 0 0 

3. Trade payables 170,598 170,575 23 0 

4. Due to associated companies 250 250 0 0 

5. Due to companies in which we have 

an equity interest 10.383 10,383 0 0 

6. Other obligations 27,137 27,013 17 107 

473,753 427,758 38,560 7,435 

Obligations to banks amounting to 

t 61.4m for Nordzucker AG and t 81.0m 

for the group are secured by mortgages. 

The Polish sugar factories used some 

fixed and current assets as security for 

loans. 

Lenders to foreign holdings have 

been assured that we will provide for the 

solvency of these companies at all times 

and that monies will be made available 

to these companies – in relation to our 

participation – in as far as this may be 

necessary. 

Trades payables are subject to the 

standard property rights in supplying 

capital equipment and inventories. All 

other obligations are unsecured. 

6. Notes on Income 

Statement Items 

Sales of sugar from our own production 

account for 81.6% of Nordzucker 

AG sales revenues (before deducting 

market regulation levies) and 88.5% of 

group sales revenues. Of Nordzucker AG 

sales, 96.9% were effected in Germany, 

2.0% in EU countries and 1.1% in other 

countries. In comparison, 69.5% of 

group sales were attributable to sales in 

Germany, 13.6% to sale in middle and 

eastern European countries, 13.2% to EU 

countries and 3.7% to other countries. 

Other operating income for 

Nordzucker AG and the group is recognised 

in the items in Table 5. 

Social security, pensions and other 

benefits recognises Tt 12,220 (group: 

Tt 15,098) for pension provisions. 

Other operating expenditures for 

Nordzucker AG and the group contain 

the items in Table 6. 

Income from subsidiaries at 

Nordzucker AG contains Tt 3,073 from 

associated companies. 

Expenditures from profit transfer 

agreements at Nordzucker AG are related 

to the assumption of a loss from an 

existing agreement. 

Income from other securities and 

loans at Nordzucker AG contains Tt 711 

from associated companies. 

In other interest and similar income, 

Tt 416 (group: Tt 14) is accounted for 

by associated companies. 

Interest and similar expenditure at 

Nordzucker AG contains Tt 147 (group: 

Tt 7) which is accounted for by associated 

companies. 

54

Taxes on income mainly fall on the 

profit from ordinary operations. Changes 

in special items at Nordzucker AG have 

led to an increase in this year’s taxation 

expenses. As a result, declared net income 

is roughly 25% higher at Nordzucker AG. 

The magnitude of this annual enhancement 

to profits – due in large to carrying 

out taxable write-downs in the past – will 

continue to decline in the coming years 

as these write-downs are proportionally 

dissolved over time. This no longer 

impacts the consolidated statement since 

the transfer of taxable special items is no 

longer permitted in a consolidated statement. 

7. Cash Flow 

Drawn up in accordance with the German 

accounting standard No. 2, the cash flow 

identifies the causes for changes in liquidity 

– based on cash and cash equivalents 

– at Nordzucker AG and for the group, 

and presents these on pages 41 and 47. 

Table 5 Other operating income 

Nordzucker AG Group 

(in t thous.) (in t thous.) 

Income from 

Retirements 1,608 4,124 

Dissolution of 

Provisions 21,863 29,200 

Special item for investment grants 1,478 1,481 

Provision for fixed assets 17,196 0 

Table 6 Other operating expenditures 


(in t thous.) (in t thous.) 

Losses from retirements 2,420 2,719 

Write-downs and provisions 

related to receivables 1,538 3,007 

Allocation to reserves 1,130 149 


Notes 

8. Major Holdings 

Direct and indirect Equity Result 

shareholding capital in t thous. 

in % in t thous. 

Sugar Division 

Nordzucker GmbH & Co. KG, Braunschweig 100 9,531 584 

Sugar International Division 

Poland 

Nordzucker Polska Sp. zo.o., Przeżmierowo 100 -290 -493 

Nordzucker Polska Spółka 

komandytowa Sp.zo.o., Przeżmierowo 100 -4,294 -4,472 

Pomorski Cukier S.A., Chełmża 100 5,771 -3,806 

Wielkopolski Cukier S.A., Przeżmierowo 100 9,643 -4,420 

Promyk Sp.zo.o., Przeżmierowo 100 11,286 143 

Slowakia 

Považský Cukor a.s., Trencianska Teplá 95 22,413 1,203 

Hungary 

Szerencsi Cukorgyár Rt., Szerencs 93 11,795 -1,544 

Mátravidéki Cukorgyárak Rt., Hatvan 100 20,764 -203 

Szolnoki Cukorgyár Rt., Szolnok 98 19,854 -1,293 

Czech Republic 

Cukrovary TTD a.s, Dobrovice 34 71,060 5,657 1 

Business Development Division 

Anton Hübner GmbH & Co. KG, Ehrenkirchen 98 6,206 790 

Medopharm Arzneimittel GmbH & Co. KG, 

Freiburg i. Br. 98 -3,139 515 

SweetGredients GmbH & Co. KG, Nordstemmen 50 9,251 -7,769 

Syral S.A., Marckolsheim/France 50 42,815 1,600 

Amino GmbH, Frellstedt 50 8,491 765 

Norddeutsche Zucker-Raffinerie GmbH, Frellstedt 50 2,459 374 

1 based on 1 Jan. 2002 to 30 Sept. 2003 (21 months) 

The figures presented here for the international 

subsidiaries follow local regulations 

and do not correspond to the 

results assessed under German law for 

group accounting. 

9. Sundry Information 

Members of the managing board and 

the supervisory board are listed on 

pages 61 and 62. 

9.1. Group Positions 

Managing board and managers 

Dr. Ulrich Nöhle 

Member of the managing board at 

• NORDZUCKER GmbH & Co. KG 

• Nordzucker InnoCenter GmbH 

• NORDZUCKER SPEZIAL GmbH 

Member of the advisory board/shareholder 

committee/administrative board at 

• NPE Natur Pharma 

Ernährungsprodukte GmbH 

• Amino GmbH 

• Norddeutsche Zucker-Raffinerie GmbH 

• esparma GmbH 

• Syral S.A. 

• SweetGredients GmbH & Co. KG 

Jens Fokuhl 



• NORDZUCKER SPEZIAL GmbH 

Supervisory board position at 

• Cukrovary TTD a.s. 







Günter Jakobiak 










56

Achim Fölster 

Member of the advisory board/ 

administrative board at 



• Syral S.A. 

• SweetGredients GmbH & Co. KG 

Dr. Gerd Jung 


• Nordzucker Polska Spółka 

komandytowa Sp. z o.o. 

• Nordzucker Polska Sp. z o.o. 


• Wielkopolski Cukier S.A. 

• Pomorski Cukier S.A. 

• Považský Cukor a.s. 

• Szerencsi Cukorgyár Rt. 

• Szolnoki Cukorgyár Rt. 

• Mátravidéki Cukorgyárak Rt. 

Dr. Thomas Künne 



• Trnavsky Cukrovar a.s. 




Werner Küster 

Member of the executive board at 











• Povazsky Cukor a.s. 

Achim Lukas 


• Promyk Sp.z o.o. 











Viera Rajniakova 





Dr. Dieter Wulbrandt 



9.2. Corporate Governance Code 

The compliance declaration of the managing 

and supervisory boards has been 

adapted and revised in line with the 

latest version of the German Corporate 

Governance Code. The declaration of 

24 February, 2004 is published on the 

Nordzucker homepage 

www.nordzucker.de/22_english/ and is 

printed here. 


Independent Auditor’s Report 

Declaration of Nordzucker AG concerning the German Corporate Governance Code 

in conformity with Article 161 of the German Company Law (AktG) 

The managing and supervisory boards of Nordzucker 

AG Braunschweig have studied in detail the recommendations 

of the government commission “German 

Corporate Governance Code”, which the Federal 

Ministry of Justice notified in the official part of the 

Federal Bulletin of 4 July 2003. Both boards agree to 

the regulations set forth in that code. Even though 

the German Corporate Governance Code is not binding 

for Nordzucker AG as a company that has not 

sought stock exchange listing, Nordzucker AG has 

complied, and will comply, with the recommendations 

made in that code except for the following 

exclusions: 

1. The German Corporate Governance Code recommends 

in clause 3.8 that in effecting a Directors & 

Officers insurance (D&O insurance for short) the company 

arrange for an adequate own-risk clause. The 

D&O insurance Nordzucker AG has taken out does at 

the moment not provide any retention either for the 

managing board nor for the supervisory board. 


in clause 4.2.4 that the annex of the 

consolidated financial statement show the compensation 

for the members of the supervisory board with 

fixed allowance, profit-oriented elements and elements 

based on long-term incentives. These details 

should be shown in an individualized form. It has 

been agreed with the supervisory board that the company 

will refrain from such itemization. 


in clause 5.4.1 that an age limit be defined 

and considered for members of the supervisory board. 

Nordzucker AG has defined a limit of 65 years of age 

for candidates nominated as supervisory board members. 

In its board elections, the general meeting of 

5 September 2003 deviated from this principle in two 

cases by way of exception, because in view of their 

excellent abilities and experience, gained not least 

during long years as members of the executive bodies 

of Nordzucker AG and Union Zucker Südhannover, 

the two candidates concerned will be able to make 

valuable contributions to the work of the supervisory 

board of Nordzucker AG. 


in clause 5.4.5 that the compensation for the 

members of the supervisory board distinguish between 

committee chairman and committee members. 

Neither the chairman nor the members of the supervisory 

board committees receive any special compensation 

for their work in such committees. 

The German Corporate Governance Code also recommends 

in the aforementioned clause that the annex 

of the consolidated financial statement show the compensation 

for members of the supervisory board in an 

individualized form showing the different compensation 

elements. The company will refrain from such itemization. 


in clause 7.1.1 that interim reports be used as 

an instrument to inform shareholders and third parties 

in the course of the financial year. Nordzucker AG 

intends to comply with this recommendation, by 

introducing IAS (International Accounting Standard) 

and IFRS (International Financial Reporting Standards) 

in 2005. 

Braunschweig, 24 February 2004 



H. Hansen-Hogrefe 

Chairman of the 

Chairman of the 

Managing Board Supervisory Board 

58

9.3. Sundry Details 

Remuneration for members of the 

managing board in the year under review 

total Tt 1,941. This is made up of a fixed 

and a variable component. The variable 

component is set by the personnel committee 

of the supervisory board and is 

dependent on goals set by the managing 

board being reached. This variable component 

should not exceed 40% of total 

remuneration. There are no option rights 

for board members. 

The supervisory board received total 

remuneration of Tt 514 based on the 

general meeting approving the dividend 

proposal. Remuneration of Tt 34 was 

paid to members of the advisory board. 

Pension obligation towards former 

members of the managing board in line 

with Section 6a of the income tax law 

was recognised at Tt 5,626. Remuneration 

amounted to Tt 419. 

In accordance with Section 267 Commerical 

Code, the following numbers of 

staff were employed (on annual average): 


Industrial staff 1,052 2,359 

White-collar staff 507 1,399 

Total 1,559 3,758 

For the limited commercial partnerships 

(with a private limited company as 

general partner) 

• Nordzucker GmbH & Co. KG, 


• Medopharm Arzneimittel GmbH & 

Co. KG, Ehrenkirchen 

• Anton Hübner GmbH & Co. KG, 

Ehrenkirchen/Germany 

we have submitted a request in compliance 

with Section 264b Commercial 

Code to exempt us from our duty to prepare 

financial statements in accordance 

with German law. 

We have provided short-term sureties 

amounting to Tt 2,434 to Avacon AG, 

Helmstedt/Germany. 

At the balance sheet date, we have 

purchase commitments of t 10m for the 

Nordzucker AG and t 11.2m for the 

group. 

In compliance with Section 20, para. 1 

of the German Stock Corporation Act, 

two companies, Zucker-Aktiengesellschaft 

Uelzen-Braunschweig, Uelzen/Germany 

and Nordzucker Holding AG, 

Braunschweig, have informed us that they 

hold an interest in our company. 

10. Net Income/ 

Appropriation of Profits 

At the general meeting, the boards will 

recommend that from this year’s net 

income of 

t 25,502,664.01 

a dividend of 

t 0.49 per share, 

or t 22,496,141.57 

be paid, and that 

t 3,000,000.00 

be set aside as 

retained earnings, and t 6,522.44 

that be carried forward 

to new account. 

t 25,502,664.01 

Braunschweig, 29 April 2004 

The Managing Board 


Jens Fokuhl 



Independent Auditor’s Report 

Drawing on accounts provided, we 

have audited the annual financial 

statements of Nordzucker AG, 

Braunschweig together with the consolidated 

financial statements it has drawn up and 

its Management Report for both the company 

and the group for the business year 

1 March, 2003 to 29 February, 2004. The 

presentation of the documents in accordance 

with German commercial legislation 

and supplementary regulations in the Company’s 

Articles of Association are the 

responsibility of the Company’s management. 

Our responsibility is to express an 

opinion on the annual financial statements 

rooted in the accounts provided together 

with the consolidated financial statements 

it has drawn up and its Management 

Report for both the company and the 

group based on our audit. 

We conducted our audit of the annual 

financial statements and the consolidated 

financial statements in accordance with 

Section 317 Commercial Code and German 

generally accepted standards for the 

audit of financial statements promulgated 

by the Institut der Wirtschaftsprüfer (IDW). 

Those standards require that we plan and 

perform the audit such that it can assessed 

with reasonable assurance whether the 

annual financial statements and the consolidated 

financial statements applying 

accepted accounting standards and the 

Management Report of the Company and 

the group relating to the asset, financial 

and profit situation are free of material 

misstatements. The evidence supporting 

the amounts an disclosures in the annual 

financial statements and the consolidated 

financial statements and the Management 

Report of the Company and the group is 

examined on a test basis within the framework 

of the audit. The audit includes assessing 

the accounting principles used and 

significant estimates made by management 

as well as evaluating the overall presentation 

of the annual financial statements and 

the consolidated financial statements and 

the Management Report of the Company 

and the group. We believe that our audit 

provides a reasonable basis for our opinion. 

Our audit has not led to any reservations. 

In our opinion, the annual financial 

statements and the consolidated financial 

statements applying accepted accounting 

standards give a true and fair view of the 

asset, financial and profit situation of the 

Company and the group. 

The Management Report provides a 

suitable understanding of the Company 

and the group and suitably presents the 

risks of future development. 


Lang und Stolz KG 

Wirtschaftsprüfungsgesellschaft 

Steuerberatungsgesellschaft 

ppa. (Kisser) 

(Pethke) 

Certified Public Certified Public 

Accountant 

Accountant 

60

Committees 

SUPERVISORY BOARD 

SUPERVISORY BOARD COMMITTEES 

Shareholders’ Representatives 


Chairman 

Farmer, Ingeleben 

Jürgen Seidel 

Deputy Chairman 

Enginee, Gronau 

(from 5 September, 2003) 

Lothar Wrede 


Farmer, Salzgitter-Thiede 

Gerhard Becker 

Farmer, Klein Bünstorf 

(until 5 September, 2003) 

Goetz von Engelbrechten 

Farmer, Molzen 


Dietrich Hauschildt-Staff 

Farmer, Steinbrück 

Eberhard Herweg 

Farmer, Roklum 

Rainer Knackstedt 

Farmer, Dedeleben 

Hans-Christian Koehler 

Farmer, Barum 

Ernst von Lüneburg 

Farmer, Essenrode 


Claus Lütje 

Farmer, Rade 

Hans-Heinrich Prüße 

Farmer, Ahlten 

Employees Representatives 

Gunold Fischer 


Chairman of the Lower Saxony/Bremen 

region of the German foodstuffs, beverages 

and gastronomy union (NGG) 

Eckhard Bosse 

Master craftsman, Leiferde 

Klaus Fentzahn 

Mechanic, Güstrow 

Gudrun Gebensleben 

Technical employee, Wolfenbüttel 

Rolf Huber-Frey 

Economist, Freiburg 

Gunther Kenk 

Secretary of the Mecklenburg-West 

Pommerania region of the German 

beverages and gastronomy union (NGG), 

Ihlenfeld 

Dieter Paschwitz 

Master craftsman, Hohenhameln 

Birgit Pitsch 

Secretary of the Lower Saxony/Bremen 


and gastronomy union (NGG), 

Hannover 

(until 4 January, 2004) 

Jochen Steinhagen 

Beet Management North, Uelzen 

Manfred Tessmann 

Secretary of the South-East Lower Saxony 


and gastronomy union (NGG), 

(from 4 January, 2004) 

Wolfgang Wiesener 

Mechanic, Uelzen 

Executive Committee 


Chairman 

Rainer Knackstedt 

Hans-Christian Koehler 





Auditing and Finance Committee 

Dietrich Hauschildt-Staff 

Chairman 


Eckhard Bosse 

Employees Committee 


Chairman 

Lothar Wrede 



Conciliation Committee 


Lothar Wrede 




Committees 

MANAGING BOARD 

PROCESS MANAGERS 

AGRICULTURAL ADVISORY BOARD 


Braunschweig 

(from 1 July, 2003) 

Chairman 




Marketing/Sales (Trade) 

Marketing/Sales (Industry) 

Goetz von Engelbrechten 

Molzen 

Chairman 


Jens Fokuhl 

Wolfenbüttel 

Finance and Accounting 

IT 

Organisation 

Corporate Communication 



Hornburg 

Procurement 

Logistics 

Personnel and Social Affairs 

Production (National) 

Beet Management (National) 

Axel Aumüller 

Production (National) 

Gerald Dohme 

Corporate Communication 

Dr. Henrik Einfeld 

Beet Management (National) 

Achim Fölster 


Rüdiger Jaernecke 


Dr. Gerd Jung 

Beet Management (International) 

Werner Küster 

Production (International) 

Achim Lukas 

Controlling/Co-ordination International 

Interests 

Dr. Ludwig Munzel 

Logistics 

Torsten Niemietz 

IT 

Manfred Rinderer 

Marketing/Sales (Trade) 

Henning Sander 

Procurement 

Sabine Scheil 

Organisation 

Michael Sprengel 

Finances and Accounting 

Manfred Steffen 

Marketing/Sales (Industry) 

Dr. Dieter Wullbrandt 


Hans-Jochen Bosse 

Chairman 

Ohrum 

Hans-Heinrich Philipps 


Kolenfeld 

Heinz-Jürgen Ahrberg 

Haverlah 

Friedrich Baxmann 

Hemmingen 

Friedrich Behnsen 

Seelze-Harenberg 

Heinrich Bernhards 

Algermissen 

Hartmut Bethge 

Groß Schwechten 

Helmut Bleckwenn 

Schellerten-Garmissen 

Hartmut Block 

Springe-Eldagsen 

Friedrich-Karl Bodin 

Natendorf 

Gerhard Borchert 

Brome 

Rolf Busse 

Hillerse 

Hubertus Eichblatt 

Kulpin 

Albert Ewers 

Northeim 

Konrad Fennel 

Heringsand 

Henning Gruß 

Wolfsburg 

Carl Graf von Hardenberg 

Nörten-Hardenberg 

Franz-Josef Harenberg 

Giesen 

Franz Hartmann 

Hildesheim 

Theodor Heesch 

Barlt 

62

Heinrich Heimsoth 

Hassel 

Otto Henniges 

Bodensee 

Friedrich-Wilhelm Hering 

Gronau 

Walter Hildebrand 

Gröningen 

Burghard Hoberg 

Elze 

Henning Hornbostel 

Rehlingen 

Dr. Harald Isermeyer 

Vordorf-Eickhorst 

Jochen Johannes Juister 

Nordhastedt 

Eckhard Kiel 

Northeim-Hammenstedt 

Erich Kleuker 

Nordstemmen 

Adolf Knölke 

Gehrden 

Burkhard Köhler 

Hemmingen-Ohlendorf 

Christian Krending 

Lamspringe 

Gerd Künnecke 

Bad Salzdetfurth 

Lothar Lampe 

Drentwede 

Wilhelm Lauenstein 

Hohenhameln-Bründeln 

Paul Lütje 

Wasbüttel 

Heinrich Machtens 

Harsum 

Helmut Meyer 

Betheln 

Hans-Jürgen Nagel 

Eime 

Dr. Wolfgang Nehring 

Oschersleben-Beckendorf 

Gerd Nölcke 

Burgdorf-Hohenassel 

Hermann Oldemeyer 

Dreveskirchen 

Michael Pahlow 

Stralendorf 

Ottmar Pfaue 

Werlaburgdorf 

Henning Pferdmenges 

Bad Gandersheim- 

Hilprechtshausen 

Christoph Rabbethge 

Einbeck 

Siegfried Sander 

Einbeck 

Hans von Schaaffhausen 

Bockenem-Klein Ilde 

Andreas Scheffrahn 

Cramme 

Heinrich Schulze-Niehoff 

Duderstadt-Desingerode 

Fritz Segger 

Cremlingen 

Arthur Stolte 

Hohenhameln 

(from 20 November, 2003) 

Wolfgang Täger-Farny 

Groß Twülpstedt-Volkmarsdorf 

Wulf Sophus Theophile 

Neukirchen 

Wolfram Tute 

Northeim-Edesheim 

Konrad Vespermann 

Hoyershausen 

Friedrich-Gustav 

Warneboldt 

Sibbesse 

Hermann Waßmuß 

Elbe-Gustedt 

Archibald Wedde 

Bad Harzburg-Bettingerode 

Wilhelm Wedde 

Langelsheim-Bredelem 

Walter Wendt 

Achim-Seinstedt 

Frank Wiese 

Seehausen 

Jürgen Winter 

Bohlsen 

Klaus-Uwe Wißotzki 

Kröpelin 

Otto Zauer 

Jersleben 

The shareholders’ representatives 

in the supervisory board are also 

members of the advisory board. 

May 2004 



Recipes 

Borsch – 

Polish beetroot soup 

Butterhead Lettuce Salad 

Dubnice 

1 large onion 

2 cloves of garlic 

1 leek 

1/2 celery root 

2 carrots 

700 beetroot 

2 tablespoon oil 

1 bay leaf 

1 tablespoon allspice 

2 litres stock 

salt, pepper 

1 tablespoon vinegar 

6 butterhead lettuces 

1 tablespoon salt 

1 tablespoon salad oil 

1 cup of wine vinegar 

1 tablespoon caster sugar 

1 level tablespoon salt 

liquid soup flavouring 

4 spoons cold water 

1 cup sour cream 

Wash beetroot and boil it in the stock for ten 

minutes. Decant the stock into a separate 

container and quench beetroot in cold water. 

Peel and cut it into eight pieces. In hot oil, fry 

onion – cut into chunks, crushed garlic, leek, 

which you have cut into rings, and diced 

celery. Add finely chopped carrots, beetroot, 

bay leaf and allspice. Pour stock back into the 

pot and season with salt and pepper. Simmer 

at a low temperature for an hour. To pep up 

the aroma, you could add dried mushrooms 

soaked in water. Strain soup through a fine 

sieve and add vinegar. Don’t drown the wonderful, 

typical taste of the beetroot with the 

vinegar. Bring to the boil and serve. 

Clean the heads of lettuce and wash in cold 

water. Dry, place in a bowl and sprinkle with 

the salad oil. Shortly before serving, prepare 

the dressing by mixing the wine vinegar, caster 

sugar some drops of the soup flavouring, salt 

and cold water and pour over the lettuce. 

Allow to marinade for roughly five minutes. 

Finally, pour in the sour cream and serve. 

Hungarian Goulash 

1 kg beef 

800g onions 

2 tablespoon paprika 

1 tablespoon wheat flour 

1/8 litre (125ml) boiling water 

salt, black pepper 

4 tablespoons puréed tomatoes 

^ ^ 

1 cup creme fraiche 

Wash the meat, cut into cubes and fry well. 

Dice the onions and add to the meat. Add the 

paprika and wheat flour, blanche with boiling 

water and season with salt and black pepper. 

Cook the mixture for one hour. Add the puréed 

tomatoes and cook for a further 30 minutes. 

^ ^ 

Finally, stir in the creme fraiche and test for 

seasoning before serving. 

‘Rote Grütze’ – red fruit jelly – 

with vanilla sauce 

375 g rhubarb 

750 g strawberries 

150 g sugar 

1 lemon (scrape off peel) 

1 vanilla pod 

1/8 litre (125 ml) white wine, or water 

20 corn flour 

200g cream 

220g milk 

60g sugar 

1 halved vanilla pod 

3 egg yolks 

Cut the rhubarb into small chunks and parboil 

together with the sugar, lemon peel and vanilla 

pod in the wine/water. Add the strawberries 

cut into quarters and allow the mixture to 

simmer slowly. Stir the corn flour into three 

spoonfuls of water until it becomes smooth 

and then stir this into the simmering fruit 

mixture. Pour into a glass bowl and leave to 

cool. The classic way to serve rote grütze is 

with vanilla sauce. 

Bring a mixture of the milk, sugar and vanilla 

to the boil. Remove from the hotplate and 

allow to cool. Add the egg yolks whisked with 

some milk and warm the mixture up again. Stir 

steadily until the mixture becomes creamy. The 

sauce can be served warm or cold. 

64

Glossary 

Finance 

Cashflow Net inflow of funds. Difference 

between receipts and spending expenses within 

one accounting period. For the sake of simplicity, 

the cash flow is determined on the basis of 

the annual surplus after tax, plus non-spending 

expenses, in particular depreciation and the 

changes in the long-term reserves. The cash 

flow is available to the company for investment, 

repayment of liabilities, and distribution of 

profits. 

Compliance Declaration Annual declaration 

made and published by the managing and 

supervisory boards of listed companies in 

accordance with article 161 AktG, stating the 

extent to which the company management 

complies with the recommendations of the 

Government Commission "German Corporate 

Governance Code" and which recommendations 

are not applied. 

German Corporate Governance Code 

(CGK) Statutes formulated in 2002 on the 

management and supervision of German companies 

listed at the stock exchange. The German 

Corporate Governance Code shows 

nationally and internationally accepted standards 

of responsible business management, 

which primarily aim at transparency and clarity. 

The code defines the responsibility of managing 

and supervisory boards, it sets forth or makes 

recommendations on how to protect the right 

of shareholders, and how executive and supervisory 

bodies should be filled and how their 

members should be remunerated. Non-listed 

companies are also recommended to comply 

with the Corporate Governance Code. 

EBIT (earnings before interest and taxes) This 

index is to supply information on the result of 

current operations. Since differences in capitalization 

are not accounted for the general interest 

rate level or tax rates are not considered. In 

this way it provides a better basis for comparing 

the operating success of companies across 

national borders. In particular international 

investors regard EBIT details as important 

figures. 

Equity Consolidation Assessment method for 

shareholdings in companies whose company 

and finance policy can be influenced decisively. 

Proportionate annual surplus or deficits of the 

associate company increase or decrease the 

book value of participations and affect the profit 

and loss account. Distributions and dividends 

decrease the book value of participations without 

affecting the profit and loss account. 

IFRS/IAS (International Financial Reporting 

Standards) or previously: IAS (International 

Accounting Standards) are accounting standards 

that render balance sheet and disclosure 

methods comparable on a global scale. 

Consolidation The group accounts are drawn 

up as if all group member companies formed 

one uniform company in law. All expenditures 

and earnings as well as all interim trade results 

and other transactions between the group 

members are eliminated by way of set-off 

(expense and result as well as interim result 

consolidation). Stakes held in group member 

companies are set off against their equity capital 

(capital consolidation), and all intra-group 

receivables and liabilities are eliminated (debt 

consolidation), because such legal relationships 

do not exist within a legal entity. Summation 

and consolidation of the remaining items of the 

annual accounts result in the consolidated 

balance sheet and the consolidated profit-andloss 

account. 

Rating Standardised assessment of the credit 

standing of a company by specialised agencies. 

Syndicated Credit Lending by several banks 

(syndicate) on the basis of standardised contract 

documentation and on the basis of identical 

terms and conditions. 

Sugar and food terms 

Fructose Sweetener often found in fruit and 

therefore also known as fruit sugar. In a chemically 

bound form it is contained in sucrose and 

in inulin, which is dominant in chicories. Fructose 

is suited for use as a diabetic sweetener. It 

is industrially extracted from sucrose, inulin or 

starch. Fructose is subject to market regulations. 

Glucose Also known as dextrose or grape 

sugar; widely used plant-based sweetener. 

The carbohydrate forms part of the family of 

monosaccharides and it is a structural element 

of starch, cellulose and glycogen. Glucose is 

industrially extracted from starch. 

Glycemic index Measuring unit for the rate 

in which the blood sugar level rises after the 

intake of foodstuffs containing carbohydrates. 

Isoglucose Sugar primarily produced from 

maize starch, which is used in beverages and 

fruit preserves. Isoglucose is subject to market 

regulations. 

Prebiotic are indigestible substances that 

affect the growth and the activity of microorganisms 

in the digestive tract and thus contribute 

to a healthy intestinal flora. 

Sorbitol E 420, Sugar alcohol that occurs, for 

instance, in rowan berries. Its structure is similar 

to that of glucose, from which it is produced in 

a technical process by the catalytic addition of 

water (hydration). Sorbitol has half the sweetening 

power of glucose and is an important 

sugar substitute for diabetics. 

Sucrose Scientific term for sugar; a disaccharide 

based on fructose and glucose. Texture, 

taste enhancement and keeping quality are 

properties which, in addition to its sweet 

flavour, make it an important sweetener. 

Sucrose is produced from sugar beets and 

sugar cane. 

Tagatose A sweetener similar to fructose, 

which is industrially produced from lactose. 

Tagatose provides virtually the same sweetness 

as sucrose (92 percent), but its energy content 

is much lower (1.5 kcal/g). Tagatose is tooth 

friendly, it has prebiotic properties and is suited 

for use by diabetics. Thanks to its flavour 

enhancing properties, it is an ideal sweetener 

for light beverages, sugar-free candies and 

chewing gum. 

Sugar industry 

A/B Quota Sugar sales volume assigned by the 

EU with limited price and full sales guarantees. 

At the same time the upper limit for sugar sales 

in the EU. 

C Sugar Sugar produced in excess of the A/B 

quota, which has to be sold on the world market 

at world market prices. 

Declassification Instrument used to cut back 

the EU sugar quotas for compliance with the 

WTO requirements of limiting the value and 

volume of subsidised sugar. 

LDC/EBA ‘Least developed countries’ / ‘Everything 

but arms‘. Both terms relate to the EU 

resolution of 2001, according to which the 

49 least developed countries in the world may 

import any goods except arms into the EU free 

of any duty. Sugar falls under a special transitional 

arrangement which will expire in 2009. 

Production Levy Levy paid by beet farmers 

and sugar producers to finance utilization losses 

if quota sugar, which cannot be marketed in 

the EU, has to be exported.

Glossary 

Supplementary Levy Levy that may be 

imposed in addition to the production levy. 

WTO (World Trade Organisation) Multinational 

organisation located in Geneva, in which 

146 member states negotiate world trade 

liberalisation on an intergovernmental level. As 

a result of the so-called Uruguay Round talks, 

the subsidies for quota sugar which may be 

exported from the EU were limited in terms of 

both volume and value. 

WTO Panel Body set up by the WTO for the 

settlement of disputes. Member states may 

request a panel under the dispute resolution 

mechanism to examine whether obligations 

under the WTO agreements have been violated. 

In 2003, Brazil, Thailand and Australia challenged 

the EU sugar exports. A first report of the 

trade experts nominated as panel members is 

expected for September 2004. 


Business Development Nordzucker coordinates 

its shareholdings outside the sugar sector 

under the title Business Development. 

Category Management (CM) Distributor/ 

manufacturer process of managing product 

categories as strategic business units with the 

aim of jointly increasing sales and jointly reducing 

costs. 

Sugar International Under the division Sugar 

International, Nordzucker coordinates its sugar 

activities in Poland, Slovakia and Hungary. 

Certification, Quality Assurance and 

Consumer Protection 

EMAS II (‘Eco Management and Audit 

Scheme’). Voluntary system used by the EU as 

an environmental management instrument 

and to promote environmental action. 

GMP 13 (‘Good Manufacturing Practice 13’). 

Dutch standard of quality control for feedstuffs 

of non-resident suppliers. 

HACCP (‘Hazard Analysis Critical Control 

Point’). System of self-regulation for food plants 

to protect against health risks that may be 

involved with the production, handling, processing, 

transport and marketing of foodstuffs. 

HACCP is often integrated in quality management 

systems based on the DIN EN ISO 9000 

series of standards. 

IFS Standard (‘International Food Standard’). 

Used for the assessment of suppliers of private 

brands as a means of safeguarding food safety 

and consumer protection. 

Customer Relationship Management (CRM) 

Systematic handling of customer relations with 

the aim of increasing customer retention and 

customer satisfaction. 

Process Manager Relates to members of the 

first management level below the managing 

board. 

‘New Fields’ New field of action of the 

Nordzucker InnoCenter GmbH. ‘New Fields’ 

collects and documents information on selected 

issues in connection with renewable raw materials, 

which is made available to Nordzucker as 

well as its shareholders and beet farmers. 

Process-Oriented Organisation Company 

operations structure introduced in autumn 

2003. It describes all processes from the customer 

to the supplier and subjects them to 

continuous improvement. 

Nordzucker InnoCenter GmbH The 

company is the result of a change of name and 

was previously the Institut für Technologie der 

Kohlenhydrate – Zuckerinstitut – e.V. It takes 

care of the research and development functions 

of Nordzucker AG.

Contact 


Küchenstraße 9 

D-38100 Braunschweig 

Phone +49 (0) 531 24 11-0 

Fax +49 (0) 531 24 11-100 

info@nordzucker.de 

www.nordzucker.de 

Investor Relations 

Susanne Dismer-Puls 

Phone +49 (0) 531 24 11-321 

ir@nordzucker.de 

Shares 

Wilhelm Just 

Phone +49 (0) 531 24 11-160 

aktien@nordzucker.de 

Public Relations 

Tanja Schneider-Diehl 

Phone +49 (0) 531 24 11-314 

pr@nordzucker.de 

Beet Cultivation 

Dr. Wolf-Gebhard Oppermann 

Phone +49 (0) 531 24 11-174 

anbauberatung@nordzucker.de 

Product Information – Consumer Services 

Marcus Fuchs 

Phone +49 (0) 531 24 11-441 

vielfalt@nordzucker.de 

Online Publications 

Annual Report 

Compliance Declaration 

Environmental Report 

www.nordzucker.de/info/gb2003-04 

www.nordzucker.de/info/compliance 

www.nordzucker.de/info/umwelt 

Diary 

General Meeting 

6 September 2004, 10.00 a.m. Union-Zucker Südhannover GmbH, Berghölzchen Hildesheim 

7 September 2004, 10.00 a.m. Zucker-AG Uelzen-Braunschweig, Stadthalle Braunschweig 

8 September 2004, 10.00 a.m. Nordzucker Holding AG, Stadthalle Braunschweig 

9 September 2004, 10.00 a.m. Nordharzer Zucker-AG, Stadthalle Braunschweig 

10 September 2004, 10.00 a.m. Nordzucker AG, Stadthalle Braunschweig

Nordzucker_GB 03-04_E_.pd 1 - Nordzucker AG

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