Nordzucker_GB 03-04_E_.pd 1 - Nordzucker AG

Management Report Shareholdings Sugar International
Nordzucker market share in
Hungary (in percent)
36%
2003
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
Equity capital
4
15
13
24
24
Nordzucker participation
71–100%
73–100%
60%
95%
92–100%
28