Nordzucker_GB 03-04_E_.pd 1 - Nordzucker AG
Nordzucker_GB 03-04_E_.pd 1 - Nordzucker AG Nordzucker_GB 03-04_E_.pd 1 - Nordzucker AG
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 % Nordzucker 2003/2004 13
- Page 1 and 2: Annual Report 2003/2004 Nordzucker
- Page 3 and 4: The Group at a Glance 1997/1998 199
- Page 5 and 6: Wir machen mehr daraus Managing Boa
- Page 7 and 8: Schleswig plant. Good beet qualitie
- Page 9 and 10: In talks in recent months with poli
- Page 11 and 12: information furnished by the managi
- Page 13 and 14: „Magyarország hamarosan érzéke
- Page 15: capital into consideration for the
- Page 19 and 20: „Die EU-Erweiterung sehe ich sehr
- Page 21 and 22: These were processed in the Warburg
- Page 23 and 24: offered a job at one of the other N
- Page 25 and 26: Fraunhofer Institut für Produktion
- Page 27 and 28: local irrigation association holdin
- Page 29 and 30: „Od członkowstwa w UE oczekuję
- Page 31 and 32: The unfavourable situation in this
- Page 33 and 34: „želám si, aby moje deti ako Eu
- Page 35 and 36: 1 October 2003, the company, which
- Page 37 and 38: throughout the group documents the
- Page 39 and 40: For this reason alone we expect the
- Page 41 and 42: Liabilities A. Equity Capital I. Su
- Page 43 and 44: Accrued Write-downs Book value Depr
- Page 45 and 46: IV. Statement of Cash Flows Net inc
- Page 47 and 48: Liabilities A. Equity Capital I. Su
- Page 49 and 50: Accrued Write-downs Book value Depr
- Page 51 and 52: IV. Statement of Cash Flows Net con
- Page 53 and 54: income and allocated to equity capi
- Page 55 and 56: tive 34 of the income tax regulatio
- Page 57 and 58: tion 308, para. 3 Commercial Code).
- Page 59 and 60: Taxes on income mainly fall on the
- Page 61 and 62: Achim Fölster Member of the adviso
- Page 63 and 64: 9.3. Sundry Details Remuneration fo
- Page 65 and 66: Committees SUPERVISORY BOARD SUPERV
particular for the Klein Wanzleben factory,<br />
may no longer be shown in the consolidated<br />
balance sheet and has to be<br />
completely allocated to equity capital<br />
(60 percent) and tax reserves (40 percent).<br />
The favourable impact of the<br />
dissolution of the special reserve with an<br />
equity portion hence no longer applies<br />
for the group. Without the H<strong>GB</strong> revision,<br />
the consolidated surplus would clearly<br />
have exceeded last year’s results.<br />
Thanks to a very unproblematic<br />
campaign and a lower declassification –<br />
1.78 (7.12) percent – than in the previous<br />
year, the Euro 81 (63) million operating<br />
result of <strong>Nordzucker</strong> <strong>AG</strong> was the second<br />
best result in its history. The annual surplus<br />
rose to Euro 51 (46) million. This<br />
figure includes the non-recurrent additional<br />
expenditure of Euro 13 million<br />
incurred in connection with the closure<br />
of the Schleswig plant.<br />
Positive results of Euro 1.9 (1.6) million<br />
are also shown for Slovakia. Syral<br />
S.A, the producer of starch saccharification<br />
products, in which <strong>Nordzucker</strong> now<br />
holds a 50 percent stake, achieved its<br />
turnaround and completed the year<br />
under review with a profit of Euro 1.6<br />
(- 8.4) million.<br />
Although the closure of three factories<br />
and reductions in the staffing level by<br />
about 40 percent to 806 employees on<br />
an annual average have much improved<br />
the cost structure in Poland, the unsatisfactory<br />
market situation produced a loss<br />
of Euro 11 (15) million. In Hungary, a<br />
decline in sales, primarily due to imports<br />
of Polish sugar, led to a negative result of<br />
Euro 3.6 million, despite the instigation<br />
of rationalisation measures. In the year<br />
under review, the Hungarian companies<br />
were consolidated for the first time,<br />
restricting meaningful comparisons with<br />
results from the previous year.<br />
Dividend<br />
Of the annual surplus of Euro 50.9 (45.8)<br />
million shown for <strong>Nordzucker</strong> <strong>AG</strong> for<br />
fiscal 20<strong>03</strong>/20<strong>04</strong>, Euro 28.4 (26.2) million<br />
are to be allocated to reserves to increase<br />
equity. An amount of Euro 22.5 (19.6)<br />
million is to be used towards paying out<br />
a dividend of Euro 0.49 per individual<br />
share certificate in line with the previous<br />
year.<br />
Capital structure of <strong>Nordzucker</strong> <strong>AG</strong><br />
(in t million/percent)<br />
Nordharzer Zucker <strong>AG</strong><br />
9.5 t million 8.1 %<br />
Union-Zucker<br />
Südhannover GmbH<br />
12.4 t million 10.6 %<br />
Public shareholders<br />
4.1 t million 3.5 %<br />
<strong>Nordzucker</strong> Holding <strong>AG</strong><br />
47.7 t million 40.5 %<br />
Zucker-Aktiengesellschaft<br />
Uelzen-Braunschweig<br />
43.8 t million 37.3 %<br />
<strong>Nordzucker</strong> 20<strong>03</strong>/20<strong>04</strong> 13
Change language