annual report 2001/02 - · pdf filedividend per share € 1.30 1.09 1 ... we enlarge the...

Annual Report 2001/02

AGRANA Beteiligungs-Aktiengesellschaft

2001/02 2000/01 1999/2000 1998/99 1997/98 1996/97 1995/96Corporate data IAS IAS IAS IAS RLG RLG RLG

Revenues € mn 842.8 760.2 703.0 684.6 580.9 552.0 505.4

Operating profit € mn 76.0 66.7 47.0 42.2 29.1 27.5 25.1

Profit before income tax € mn 64.1 51.2 28.0 26.4 — — —

Profit fromordinary activities € mn — — — –— 31.6 27.2 25.5

Consolidated profitfor the year € mn 44.3 37.6 22.0 15.3 32.0 20.9 15.8

Net cash from profit– applying IAS € mn 90.4 98.7 58.2 — — — —– applying RLG € mn — — — 60.8 65.0 55.3 55.2

Investments € mn 29.0 38.1 24.4 37.9 42.3 57.0 46.4

Staff 4,463 4,753 5,290 4,506 2,555 2,812 3,004

EBIT margin % 9.0 8.8 6.7 6.2 5.0 5.0 5.0

ROS % 7.6 6.7 4.0 3.9 5.4 4.9 5.0

Equity ratio % 47.7 44.6 41.4 36.8 42.5 41.4 43.6

Performance on thestock exchangeHigh € 31.75 20.38 23.40 24.70 23.85 24.70 20.35

Low € 17.80 17.63 18.99 19.48 19.04 17.15 16.71

Close € 29.45 17.80 19.50 20.46 20.28 21.95 17.50

Earnings per share– applying IAS € 4.02 3.41 2.15 1.48 — — —– applying HGB (ÖVFA) € — — — 1.31 1.89 1.89 1.67

Dividend per share € 1.30 1.09 1.09 1.02 1.02 0.94 0.94

Dividend yield % 4.4 6.1 5.6 5.0 5.0 4.3 5.4

P/E ratio (close) 7.3 5.2 9.1 13.9 10.7 11.6 10.5

Stock-market capitalization(close) € mn 44.2 26.7 29.2 30.7 30.5 32.9 26.3

Balance-sheet dataShare capital € mn 80.1 80.1 80.1 73.8 73.8 73.8 73.8

Non-current assets € mn 367.2 383.7 386.2 394.6 364.0 366.8 330.9

Equity € mn 414.2 381.0 354.8 312.5 305.8 295.7 290.3

Balance-sheet total € mn 868.6 854.7 857.7 849.2 718.9 715.2 666.3

Key data

20012002Annual Report

of AGRANA Beteiligungs-Aktiengesellschaft

for the financial year from

1 March 2001 through 28 February 2002

“CATIONAMYL”

(cationic starch) for the paper industry.Our CATIONAMYL starches can be potato- or maize-based and are hot- or cold-water

soluble. They act as filler and fibre retainers and increase paper strength.( )

30102

Highlights during the financial year


● Consolidated revenues grow by 11 per cent

to € 843 million.

● Operating profit increases by 14 per cent,

and profit for the year grows by 18 per cent.

● We enlarge the maize starch factory in Aschach.

● The Austrian Starch and Sugar Divisions

record improved results, and earnings from

foreign interests grow.

● The EU sugar-market regime is extended

to 2006.

● AGRANA purchases the S.C. A.G.F.D. Tandarei S.A.

starch factory in Romania.

● The AGRANA share gains 65 per cent to

€ 29.45 during the 2001/02 financial year

(and continues to rise to stand at € 31.80

on 10 May 2002).

Showing you the STARCH in us:

The pictures in our recent annual reports mainly portrayed the sweeter side of the AGRANA Group.

This time, we want to show you the STARCH in us. AGRANA supplies a wide range of starch products

made from both potatoes and maize. They have a variety of uses in the Food sector (food and

beverage industries, organic products, GM-free products) and the Non-Food sector (paper and paper-

converting and corrugated cardboard industries, textile industry, construction chemicals industry

and pharmaceutical and cosmetics industries). We encounter starches every day of our lives.

To find out more about AGRANA’s contribution to a richer world of starch, visit our website at

www.agrana.com.

40102

Preface by the Chairmanof the Board of Management

Dear Sir or Madam,

The AGRANA Group recorded its highest revenues and profits to date in the 2001/02

financial year.

Revenues grew by 11 per cent to € 842.8 million (previous year: € 760.2 million).

The Austrian members of the Group generated two thirds of the increase of € 82.6 mil-

lion, and one third was accounted for by the members of AGRANA International.

Within AGRANA Zucker und Stärke AG, the Sugar Division’s revenues grew by 6.7 per

cent and the Starch Division expanded by 12.7 per cent. The Starch Division’s

growth was above all due to the increase in capacities at our maize starch factory

from mid-2001.

AGRANA’s operating profit grew even more rapidly than revenues, increasing by

14 per cent, and consolidated profit for the year advanced by 18 per cent.

Operating profit of € 76 million (previous year: € 67 million) increased our EBIT

margin to 9.0 per cent (previous year: 8.8 per cent). Consolidated profit for the year

came to € 44.3 million, as against € 37.6 million in 2000/01.


Johann Marihart

50102


The development of profits was the fruit both of numerous long-term strategic initia-

tives and short-term measures undertaken to cope with an increasingly difficult

economic environment.

The business environmentWe are pleased to report that the EU sugar-market regime has been extended by five

years to 2006, albeit it with reduced quotas and without the storage refund system.

The strong US dollar and a fall of 2 million metric tons in the European Union’s

white sugar harvest, which totalled 15 million metric tons, have stabilized export

prices. However, a record sugarcane harvest in Brazil in 2002 has led to a drop in

the world market price of sugar, and there are signs that the US dollar will weaken.

The Western Balkans Agreement and the EBA initiative have already resulted in

tariff-free imports to the EU, and they are increasing.

However, accession negotiations between the EU and countries in Central and

Eastern Europe are nearing completion, and they will have a sustained beneficial

impact on our subsidiaries.

Walter Grausam Klaus Korn

60102

AGRANA InternationalThe closure of the Acs sugar factory in Hungary during 2001 was the latest major

rationalization by Magyar Cukor. Results were very good both in Hungary and in

the Czech Republic and Slovakia. Having launched Koronas Cukor in Hungary and

Korunni Cukr in the Czech Republic, we also launched Korunny Cukor in Slovakia in

December 2001.

The sugar market in Romania is still plagued by profound structural problems caused

by the inadequacy of safeguard measures for the beet-growing sector. Our sub-

sidiaries are also affected by those problems. We also launched a branded product

in Romania, called Margaritar Zahar, during the year under review. We are imple-

menting a policy of geographical specialization in our refining and beet processing

operations. Our starch manufacturing operations gained a new geographical focus

in Tandarei when we acquired the S.C. A.G.F.D. Tandarei S.A. maize starch factory.

The sugar and isoglucose quotas offered to the Czech Republic, Hungary and Slovakia

by the European Union are close to our expectations, and as a basis for negotiation,

they have created a good medium-term outlook for the Eastern European strategy

we launched in 1990.

AustriaOur activities in Austria account for 68 per cent of revenues and 59 per cent of

operating profit.

We are placed third in the structural ranking of the European Union’s 14 sugar pro-

ducing countries, processing 12,000 metric tons of beet a day in each of our three

sugar factories and manufacturing 140,000 metric tons of sugar per factory and year.

We are placed at least as well when it comes to the efficiency of our usage of energy

and process materials. Our sugar factories have already achieved a 22 per cent cut

in CO2 emissions since 1990, far surpassing the standards agreed at Kyoto for the

year 2010 (cut of 13 per cent).

The increase in the maize starch capacities of our Austrian Starch Division went

smoothly on-line in mid-2001. The doubling of our starch revenues to € 130 mil-

lion since Austria joined the EU has been the fruit of making risk investments that

were perfectly matched to opportunities in the marketplace.

In the next few years, we plan to spend another € 60 million on enlarging process-

ing capacities to 1,000 metric tons of maize a day and implementing new refining


70102


technologies such as saccharification, drum drying and extrusion at Gmünd and

Aschach. We have been encouraged in our ambitious plans by the development of

AGRANA’s results in recent years. Moreover, we have been able to create numerous

new skilled industrial jobs in the Starch Division.

OutlookWe are entering the new financial year in a spirit of optimism. The prospect of an

enlarged European Union and the results of the WTO negotiations against the back-

ground of the clash of interests between EU and US agricultural policies will be the

most important factors influencing our operating environment.

We want to go on growing in both qualitative and quantitative terms, whether by

giving greater depth to our refining operations—for instance by extracting betaine

from molasses—or by continuing to invest in the starch sector. And we will be

keeping an eye on possible acquisitions in the Balkans as well as continuing system-

atically to rationalize through the concentration and specialization of our manu-

facturing facilities.

Our healthy profits and positive outlook for the current financial year are also re-

flected in our dividend proposal, which we are increasing to € 1.30 per share (previ-

ous year: € 1.09).

To remain listed in the Prime Market segment on the Vienna stock exchange, we

must decide to convert our preference shares into ordinary shares by not later than

31 December 2002.

I would like to end by thanking all those who do business with us, our shareholders

and the supervisory bodies for the trust they have placed in our company and in

its management. In addition, I would like to express my thanks to all our staff,

whose dedication, skills and zeal have helped us to achieve our goals and our good

results under challenging market conditions. That same dedication, motivation and

zeal will remain crucial to the achievement of our corporate goals in the future.

Yours faithfully,

Johann MARIHART

80102

The company’s boards and officers

Supervisory Board

Christian KONRAD, ViennaChairman

Rudolf MÜLLER, OchsenfurtVice-Chairman

Ferdinand GASSAUER-FLEISSNER,

ViennaVice-Chairman

Hans-Jörg GEBHARD, Eppingen

Erwin HAMESEDER, Mühldorf

Christoph KIRSCH,

Weinheim/Bergstrasse

Richard SCHWAIGER, Aiterhofen

Martin WEISS, Lassee

Staff Council delegates:

Ernst HERZIG, Breitenfurt

Harald TOTH, Leopoldsdorf

Peter VYMYSLICKY, Leopoldsdorf

Erich WEISSENBÖCK, Gmünd

Board of Management

Johann MARIHART,

LimbergChairman

Walter GRAUSAM,

Vienna

Klaus KORN,

Ochsenfurt


90102


INSTANTINA Ges.m.b.H. (Austria)

AGRANAZucker und Stärke AG

AGRANAInternationale

Verwaltungs- und Asset-Management AG & Co KG

AGRANAMarketing- undVertriebsservice

Ges.m.b.H.

Zuckerforschung Tulln Ges.m.b.H. (Austria)

Hottlet Sugar Trading N.V. (Belgium)

Portion Pack Europe Holding B.V. (Netherlands)

Österr. Rübensamenzucht Ges.m.b.H. (Austria)

ÖSAT Beteiligungsges.m.b.H. (Austria)

S.C. AGRANA Romania Holding and Trading Comp. s.r.l. (Romania)

S.C. Zaharul S.A. Buzau (Romania)

S.C. Danubiana Roman S.A. (Romania)

S.C. BETA-Tandarei S.A. (Romania)

S.C. A.G.F.D. Tandarei S.A. (Romania)

Magyar Cukor Rt. (Hungary)

Hungrana Kft. (Hungary)

Moravskoslezské Cukrovary a.s. (Czech Republic)

Slovenské Cukrovary a.s. (Slovakia)

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M a n a g e m e n t a n d C o o r d i n a t i o n


The structure of the AGRANA Group

“SOLAMYL”

(hot-water soluble potato starch) is used as a sizing agent for threads

made of cotton, wool, linen or synthetic fibres.( )

110102


The AGRANA share

The AGRANA share stood at € 17.80 at

the beginning of the 2001/02 financial

year. It reached a high of € 31.75 on

1 and 4 February 2002 and a low of

€ 17.80 at the beginning of the financial

year on 1 March 2001. It stood at € 29.45

at the close of the financial year on

28 February 2002, giving a full-year gain

of 65.5 per cent. Subsequently, the

AGRANA share was trading at € 31.80 on

10 May 2002. The company’s market

capitalization totalled € 44,200 thousand

at the end of the financial year.

Over the same period, the Austrian Traded

Index (ATX) advanced by 1.25 per cent

from 1,196.92 points (1 March 2001) to

1,211.88 points. It stood at 1,341.59

points on 10 May 2002.

Since 1 January 2002, the AGRANA share

has been traded in the Prime Market seg-

ment on the Vienna stock exchange (sub-

ject to the conversion of its preference

shares to ordinary shares by not later

than 31 December 2002. To be a part

of that segment, issuers must observe

stricter standards of transparency, qual-

ity and disclosure than those laid down

in the provisions of the Austrian Börse-

gesetz (stock exchange act). AGRANA

satisfies all the criteria but the require-

1 March ’01 28 Feb ’02 10 May ’02

€ 35

€ 30

€ 25

€ 20

€ 15

€ 10

Events, publications & dividends calendar for 2002/03 (provisional)Publication of results for the 2001/02 financial year 13 June 2002

General Meeting of Shareholders 12 July 2002

Dividend ex-day and dividend pay-day 16 July 2002

Publication of results for Q1 2002/03 17 July 2002

Publication of results for H1 2002/03 11 October 2002

Gewinn Fair 17– 20 October 2002

Publication of results for Q1 – Q3 2002/03 16 January 2003

The development of the AGRANA share and the ATX index

ment regarding share type (i.e.only ordi-

nary shares qualify for trading in this

quality segment). Consequently, nego-

tiations are currently underway with

our ordinary shareholders regarding

the conversion of our preference shares

into ordinary shares by not later than

31 December 2002.

Besides being listed in the Prime Market

segment on the Vienna stock exchange,

the AGRANA share is also traded in the

Präsenshandel segment on the Frankfurt

stock exchange and has been listed on

the Stuttgart stock exchange since the

spring of 2002.

Disclosures and informationAGRANA had a stand at the Gewinn Fair

in Vienna in October 2001. In addition,

we provided information about the

Group’s business development on a reg-

ular up-to-the-minute basis in numer-

ous press releases, at a press conference

held to present the Annual Financial

Statements in June 2001, and during

one-to-one meetings with the media.

Outpayment to shareholdersThe Board of Management and the Super-

visory Board will be recommending that

the General Meeting of Shareholders on

12 July 2002 approve an increased divi-

dend payout to shareholders of € 1.30 per

share, as against € 1.09 last year.

ATX

AGRANA

120102

130102

Consolidated GroupReport

20012002

140102

Economic conditions AGRANA Beteiligungs-AG

Conditions in generalThe fourth WTO Miniterial took place in Doha from 9 to 14 November 2001. It

agreed the agenda for a new round of negotiations. In the agricultural sector, it was

decided to conduct negotiations with the following goals: substantial improve-

ments in access to the market, reductions in all forms of export subsidies with the

goal of their complete abolition (but without assuming any particular negotiating

result) and substantial reductions in trade-distorting measures. The EU negotiators

have rated the agreement for the agricultural sector as a success in that it only spec-

ifies that there should be negotiations about the agricultural sector but does not

define a timeline or detail results. Among other things, the timetable for the future

stipulates that the obligations of every WTO member are to be defined by the end

of 2003 with the goal of implementing actual measures from mid-2006.

Council Regulation No. 2563/2000 issued by the Council of Europe on 20 Novem-

ber 2000 extended the Western Balkans Agreement (Council Regulation No. 2007/

2000)—which gives agricultural products from the Western Balkans (Albania, Croa-

tia, Bosnia and Herzegovina, Kosovo) unhindered access to the Single Market with

the exception of fishery products, baby-beef and wine—to include Macedonia and

Yugoslavia. The agreement will expire on 31 December 2005. The Commission

will be able to take action within the scope of a safeguard clause if imports of agri-

cultural products or fishery products cause serious problems in the European market-

place.

On 26 February 2001, the EU foreign ministers approved Council Regulation No.

2820/98, which gives the world’s 48 least developed countries (LDCs) tariff-free

access to the European Single Market for “everything but arms” (EBA). Transitional

measures lasting up to and including 2009 have been laid down for sugar, rice and

bananas, which have been classified as sensitive products. The import quota for

sugar has been set at 74,000 metric tons per annum (increasing by 15 per cent annu-

ally). Customs duties for the 48 countries concerned will gradually be reduced from

2006, culminating in complete deregulation as of 2009.

Economic conditions

150102


The world sugar marketWorld sugar production from sugar beet and sugar cane during the 2001/02 sugar

marketing year (SMY), running from September to August, came to an estimated

136 million metric tons (raw value), as against approximately 131 million metric

tons the year before. Global consumption (raw value) is expected to increase slightly

to 132.2 million metric tons (previous year: 130.1 million metric tons) in the

2001/02 SMY. Allowing for global imports and exports, stocks ended the year at

about 63 million metric tons (previous year: 61.7 million metric tons), or 47.8 per

cent of consumption (previous year: 47.4 per cent).

During the 2001/02 financial year, the average world market price of white sugar

(as quoted in London) rose from US$ 235 (February 2001) to a monthly average high

of US$ 279 in June 2001 and then stood at US$ 238 in February 2002. Meanwhile

the middle rate of exchange of the US dollar rose from € 1.07 on 1 March 2001 to

€ 1.14 on 28 February 2002.

The sugar market in Austria and the rest of EuropeAreas under beet in the European Union fell from 1.821 million hectares in 2000

to 1.803 million hectares in 2001, and sugar production from beet within the EU

fell from 18.2 million metric tons to 15.8 million metric tons. Export availability,

inclusive of C sugar, fell from 6 million metric tons in 2000 to 3.7 million metric

tons in the year under review.

On 22 May 2001, the EU agricultural ministers agreed to extend the sugar-market

regime. The members of the European Union unanimously accepted a compromise

proposed during the Swedish Presidency, under which the sugar-market regime has

been extended by five years to 30 June 2006 subject to revision at the beginning

of 2003. The EU Commission won acceptance for its proposal that the storage re-

fund system should be abolished and that a permanent cut in quotas of 115,000

metric tons should be carried out. The reduction in sugar quotas to 14.483 million

metric tons carried out in the course of the reform of the sugar-market regime

160102

translated into a 0.75 per cent cut from the previous total of 14.592 million metric

tons. The Austrian quota fell from 390,410 metric tons to 387,326 metric tons

(314,029 metric tons of A sugar and 73,297 metric tons of B sugar) as a result.

An intertrade agreement for beet growing from 2002 through 2005 was concluded

with Austria’s beet farmers in September 2001.

In November 2001, a decision was reached regarding exports by overseas countries

and territories into the European Union. It provides for an annual quota of 28,000

metric tons of tariff-free imports of sugar and sugared products to the EU in the

period from 2001 to 2007. That quota is then to be cut by 7,000 metric tons a year

from 2008 to 2010. The tariff-free quota will be abolished altogether as of 1 January

2011. Within that quota, sugar and sugared products are exempted from tariffs.

The starch market in Austria and the rest of Europe

Potatoes

AGRANA has reduced the organizational levy payable by farmers during the 2002

harvest year by another € 0.75 to € 1.45 per metric ton.

Because balancing payments will be unchanged despite the reduction in the organi-

zational levy, the price paid for potatoes during the 2002 harvest year will be slight-

ly up on 2001 at € 23.42 per metric ton.

Maize

Maize deliveries in 2001 totalled approximately 241,000 metric tons. We processed

some 47,000 metric tons of wet maize between 17 September and 20 November

2001.

The European Union’s eastward enlargementThe Commission’s negotiating proposals in preparation for enlargement are based

on the assumption that up to 10 new member-states will be admitted from 2004.

In the agricultural sector, the proposals provide for the introduction of direct pay-

ments to farmers (starting with 25 per cent of the premium rates currently paid in

the EU) followed by gradual adjustments within a transitional period of 10 years

(2004–2013) in addition to the laying down of production quotas for sugar, isoglu-

cose and potato starch.


170102


The table below shows the sugar, isoglucose and potato starch quotas applied for

by the Central and Eastern European countries and the counterproposals made by

the European Commission:

The sugar production quotas proposed by the Commission would result in white

sugar production of 2.9 million metric tons in the year after the accessions of the

new members. Poland would have the largest quota of 1.67 million metric tons

within that total.

During the second round of liberalization of agricultural trade with Central and

Eastern Europe, the EU Commission also plans to bring sensitive products such as

cereals, dairy products and beef into the process on the basis of a “double-zero”

approach. The double-zero approach involves bilateral liberalization within the

scope of which the tariff-free movement of products is allowed within the limits of

a quota, but no export refunds are paid for them. The import quotas for sensitive

products have been set at 2 per cent of domestic consumption subject to an annual

increase to enhance trade volumes. Sugar and rice are to remain excluded from the

negotiations.

Sugar quotas Isoglucose quotas Potato starch quotas

Commis- Commis-Metric tons Requested Commission proposal Requested sion Requested sion

Total A sugar B sugar proposal proposal

Czech Rep. 505,000 445,237 441,409 3,828 None — 45,000 16,967

Hungary 480,000 380,021 378,791 1,230 140,000 111,244 None —

Slovakia 235,000 208,736 189,760 18,976 60,000 3,220 None —

Estonia 75,000 — — — None — 10,000 250

Latvia 110,000 52,482 47,711 4,771 None — 15,000 3,447

Lithuania 165,000 96,241 96,241 — None — 8,500 700

Malta None — — — None — None —

Poland 1,866,000 1,665,017 1,590,533 74,484 20,000 2,493 260,000 90,546

Slovenia 75,000 52,977 48,161 4,816 None — 2,800 —

Cyprus None — — — None — None —

180102

Financial condition and profit position AGRANA Beteiligungs-AG

Financial condition and profit position

Reporting in accordance with IAS

The Consolidated Financial Statements for the 2001/02 financial year were drawn

up in accordance with the International Accounting Standards (IAS).

We have reported in euros (€), thousands of euros and millions of euros.

Profit positionConsolidated revenues grew by 10.9 per cent to € 842.8 million (previous year:

€ 760.2 million). The increase was due to rising revenues recorded by both the

Austrian Sugar and Starch Divisions and the Group’s foreign subsidiaries and to

changes in the Consolidated Group. The new additions to the Consolidated Group

were RUMA Handelsgesellschaft m.b.H., Hagenbrunn, Austria, and Romanian starch

factory S.C. A.G.F.D. Tandarei S.A. The scope of the Consolidated Group was reduced

by the liquidation of Kaposvari Cukor Menedzsment Kft., Budapest. The merger of two

Slovakian companies—Cukrovar Nova a.s., Sered, and Gemercukor a.s., Rimavská Sobota

—resulted in the addition of Slovenské Cukrovary a.s., Rimavská Sobota, Slovakia, to

the Consolidated Group. The two merged companies were excluded.

Sixty-nine per cent of the increase in revenues of € 82.6 million was generated by

the Austrian Group-members, including above all the Sugar Division (6.7 per cent

growth in revenues), the Starch Divisions (12.7 per cent growth in revenues) and

trading activities. Central and Eastern Europe accounted for 32 per cent of aggregate

revenues.

Operating profit advanced by 13.9 per cent from € 66.7 million to € 76.0 million,

and profit for the year advanced by 17.8 per cent. Central and Eastern Europe

accounted for 41.4 per cent of consolidated operating profit.

Breakdown of operating resultin 2001/02 [2000/01]

Central andEastern Europe

41.4% [48.0%]

Austria58.6% [52.0%]

190102

Financial condition and profit position AGRANA Beteiligungs-AG

Revenues by country in 2001/02[2000/01]

Slovakia 3% [3%]Romania6% [8%]

Czech Republic6% [6%]

Hungary17% [15%]

Austria68% [68%]

Revenues by region in 2001/02[2000/01]

Other foreign 2% [2%]

Central andEastern Europe

35% [33%]

Other EU6% [7%]

Germany10% [8%]

Austria47% [50%]

’01/’02 ’00/’01 ’00/’01’01/’02

Non-current assets

Current assets

Deferred items

Equity

Provisions

Payables

Deferred items

Minorities

of which liquidity

Development of the Balance Sheet (€ mn)

367.2

[97.1]

500.7

0.7

146.8

314.9

3.0

9.0

Assets Equity and liabilities

383.7

[103.3]

470.2

0.8

167.6

272.5

5.5

8.8

854.7

868.6

414.2 381.0

854.7

868.6

200102

tomer services on behalf of the entire

Sugar Division. We will be reporting on

those activities in the section of this

report dealing with AGRANA Marketing-

und Vertriebsservice Ges.m.b.H., commenc-

ing page 24.

InvestmentsInvestments in the three sugar factories

in Austria totalled € 5.9 million during

2001. The primary focuses were beet

deliveries, limekilns, juice purification,

white sugar centrifuges, process control

systems and crystallization. In addition

to increasing capacities, our investments

also led to further cuts in energy costs

and reductions in our consumption of

process materials and supplies.

Since 1990, the Sugar Division’s aggre-

gate energy consumption in relation to

quantities of beet processed has gone

down by more than 27 per cent, and

specific CO2 emissions have fallen by

more than 30 per cent over the same

period. As a result, Austria’s sugar indus-

try has not only made an important

contribution to reducing burdens on the

environment. It has also gone much

further than the target agreed in Kyoto,

which is to reduce nationwide CO2 emis-

sions by 13 per cent between 1990 and

2010.

with an average sugar content of 16.77

per cent (previous year: 17.15 per cent)

were processed into 423,400 metric tons

of sugar (previous year: 411,200 metric

tons). That was 109.3 per cent of our

maximum EU production quota of

387,326 metric tons.

The bigger beet crop lengthened the

campaign to 77 days, although that was

only slightly longer than the previous

year’s 74-day campaign because our three

sugar factories stepped up their daily

throughput by another 457 metric tons

to 36,012 metric tons. That was mainly

possible because of a nearly glitch-free

campaign, the beet’s lower sugar con-

tent and a raft of detailed optimizations.

AGRANA is in the top third of the Euro-

pean rankings of factory sizes. In terms

of average daily processing throughput

per sugar factory, Austria ranks third

behind the Netherlands and Sweden and

ahead of France with throughput of

12,000 metric tons a day.

Earth adhering to the beet was virtual-

ly unchanged at 9.0 per cent (previous

year: 8.8 per cent).

MarketsAGRANA Marketing- und Vertriebsservice

Ges.m.b.H. (AMV) has responsibility for

product development, marketing, brand

cultivation, sales, distribution and cus-

SUGAR DIVISION

Course of businessThe division’s business development

during the financial year under review

was dominated by increases in the quan-

tity and value of sales of quota sugar,

which increased to 381,000 metric tons

(previous year: 359,000 metric tons).

Sugar sales totalled 444,000 metric tons

during the 2001/02 financial year (pre-

vious financial year: 464,900 metric

tons). Sugar revenues for the purposes

of IAS came to € 333.4 million (previous

year: € 312.4 million).

ProductionAGRANA concluded beet-growing con-

tracts with 10,300 Austrian farmers for

an area of 44,700 hectares (previous year:

43,000 hectares) for the 2001 campaign.

The per-hectare beet yield of 62 metric

tons (previous year: 61.5 metric tons)

was in line with long-term averages.

Growing conditions were ideal until the

end of July, but a dry August slowed the

beet’s rapid development somewhat.

Nonetheless, ample precipitation in Sep-

tember boosted the crop’s development

substantially towards the end of the

growing period. During the 2001 beet

campaign, 2,773,478 metric tons of beet

(previous year: 2,633,532 metric tons)

AGRANA Zucker und StärkeAktiengesellschaft

Report on the Group’s principal subsidiaries AGRANA Beteiligungs-AG

“MAISITA” (native maize starch)is used by food processors as an

ingredient in dessert powders, cakes, pastries and crèmes.( )

220102

’98/’99

Total revenues (€ mn)

’99/’00 ’00/’01

54%

99.3

Total revenues

Export ratio

’01/’02

114.6

56%

107.1

58%


ucts were 9 per cent up on the year. The

enlargement of maize processing capac-

ities at Aschach led to a disproportion-

ately large increase in sales of by-prod-

ucts, which rose by 22 per cent.

NON-FOOD—Technical StarchesThe NON-FOOD—Technical Starches seg-

ment still accounted for 22 per cent of

total starch sales, notwithstanding a

partial shift in the pattern of sales of

technical starches in favour of sales to

the food and beverage industries.

Domestic sales by volume to the paper

industry during the 2001/02 financial

year were up 46 per cent, and total sales

inclusive of exports increased by 25 per

cent. Because of the increase in the pro-

portion of native starch, sales by value

in that segment did not grow as rapidly.

Total sales to the corrugated cardboard

toes had a starch content of 17.4 per cent

(previous year: 17.9 per cent). We con-

cluded contracts with 2,021 farmers for

213,500 metric tons of starch potatoes

for the 2002 harvest year (previous year:

222,800 metric tons).

Four hundred and forty-four growers

delivered a total of 16,500 metric tons

(previous year: 17,150 metric tons) of

potatoes for the food industry and

organic potatoes for making long-life

potato products (e.g.mashed potato) and

organic foods. We concluded contracts

for 17,800 metric tons of potatoes for

the food industry and organic potatoes

for the 2002 harvest year (previous year:

15,300 metric tons).

The Aschach maize starch factory pro-

cessed 240,000 metric tons of maize dur-

ing the 2001/02 financial year (previous

year: 212,000 metric tons). The increase

in processed volumes was due to the

successful increase in capacities at our

maize starch factory in mid-2001.

Following good harvests from 1998 to

2001, areas under maize are likely to

fall slightly in 2002. However, if yields

are good, our raw materials basis should

remain assured.

Our MarketsDespite the economy’s poor develop-

ment, sales of starch and starch prod-

STARCH DIVISION

Course of businessThe division’s performance continued

to improve during the 2001/02 financial

year. Sales revenues again increased,

growing by another 12.7 per cent to

€ 129.1 million (previous year: € 114.6

million). That was above all achieved

by upgrading the product-mix in the

direction of higher-quality products that

attract better prices and increasing basic

production volumes by enlarging capac-

ities in Aschach. Operating profit in the

2001/02 financial year underwent a sus-

tainable improvement that was largely

attributable to increased capacities at

the Aschach maize starch factory, cost

optimizations and the opening up of

new markets and market niches.

ProductionAGRANA accepted delivery of a total of

213,000 metric tons (previous year:

228,600 metric tons) of starch potatoes

from 2,272 farmers (previous year: 2,345

farmers) for processing during the 2001

campaign, which lasted 123 days. Potato

starch production came to slightly less

than our EU quota of 47,691 metric tons.

We increased daily processing through-

put to 1,742 metric tons (previous year:

1,720 metric tons) of potatoes. The pota-

58%

129.1

230102


ucts such as fruit preparations, confec-

tionery, baby foods, cakes and pastries,

delicatessen products, and many more.

In addition, AGRANA also makes house-

hold products such as mashed potato

and dumpling mixes for major European

manufacturers of branded products.

More than 90 per cent of those organic

ingredients were exported. Our biggest

markets are the European Union, Switzer-

land, North America, Southeast Asia and

Oceania.

The Gmünd and Aschach factories are

certified organic producers within the

meaning of the current amendment of

EU Council Regulation 2092/91.

In recent years, both sales and revenues

in the organic segment have been grow-

ing by about 50 per cent a year.

GM-free maize starch productsAGRANA has been manufacturing certi-

fied GM-free maize-based and waxy

maize-based food ingredients since 1998.

Certification encompasses the entire

production process, from the selection

of seed, planting and harvesting to pro-

cessing at Aschach and Gmünd. Certi-

fication is carried out in accordance

with the Austrian Codex, Germany’s Ver-

ordnung zur Änderung der Neuartige Lebens-

mittel- und Lebensmittelzutaten-Verordnung

and the Swiss Lebensmittelverordnung.

industry grew by about 9 per cent, and

prices in that segment also rose.

Sales to the textile industry were again

more than 10 per cent up on the year

in both volume and value terms.

Sales to the construction industry grew

by 17 per cent, and revenues in that area

increased disproportionately rapidly,

advancing by 25 per cent, thanks to fur-

ther shifts into higher-priced lines.

FOOD—starches for the foodand beverage industriesFOOD is the Starch Division’s largest

segment. Sales by volume increased by

6.5 per cent on the year.

Capacities in the long-life potato prod-

ucts sub-segment were thoroughly uti-

lized through the production of both

conventional mashed potato flakes and

organic flakes. Volumes increased by

more than 4 per cent.

Organic productsFor more than 10 years, AGRANA has been

processing organically grown potato and

maize into organic potato and maize

starches, organic saccharification prod-

ucts and organic potato products (potato

flakes and dried potatoes) at the Gmünd

and Aschach factories. Those products

are sold throughout the food and bever-

age industries for use above all in prod-

The product line includes native starch-

es, pregelatinized starches, malto-

dextrine and dried glucose syrups for

use in blancmanges, soups and sauces,

dairy foods for infants and baby food

in jars, spice mixtures, and fruit and

vegetable powders.

AGRANA is one of Europe’s biggest B2B

supplier of both organic and GM-free

products.

GROUP INTERESTS

We will report on the interests held by

AGRANA Zucker und Stärke AG in Central

and Eastern Europe—whose manage-

ments and coordination are the respon-

sibility of AGRANA Internationale Verwal-

tungs- und Asset-Management AG & Co KG

—from page 29.

240102

AGRANA Marketing- und Vertriebsservice Ges.m.b.H. (AMV) sells AGRANA’s products to

the food trade (branded products) and the food and beverage and animal feed

industries as well as being responsible for marketing the entire product line of

AGRANA Zucker und Stärke AG. AMV also has responsibility for brand management

and the distribution and sale of products made by Erste Wiener Walzmühle Vonwiller

Ges.m.b.H. and FARINA Mühlen Ges.m.b.H., in addition to which it handles sales of

the catering products of Hellma Lebensmittel-Verpackungs-Ges.m.b.H. (a part of Por-

tion Pack Europe).

AGRANA Marketing- undVertriebsservice Ges.m.b.H.

Course of businessAMV recorded revenues of € 456 million

during the 2001/02 financial year (pre-

vious year: € 414 million).

Successful branded productsWiener ZuckerThe emphases of our marketing cam-

paign during the 2001/02 financial year

were “Baking” before Easter and Christ-

mas, “Mother’s Day”, “Preserving” and

“Sweetening” with brown sugar varie-

ties. We brought our Wiener Dessertbuch

(Viennese deserts book) onto the mar-

ket in April 2002. Like our Viennese

baking book and Viennese preserving

book, it was very well received by cus-

tomers.

In the packaging field, we completely

relaunched Wiener granulated sugar in

jars and Wiener sugar candy (white and

brown).

Wiener Zucker is AGRANA’s biggest-sell-

ing flagship brand in the domestic food

market. Household sugar sales during

the financial year under review totalled

70,000 metric tons, which was slightly

up on the previous year’s figure of 69,400

metric tons. Above all, good fruit har-


’99/’00

Total sugar sales(metric tons)

’00/’01 ’01/’02

464,9

00

498,3

00

444,0

00

250102

Those marketing activities focused main-

ly on the printed media.

We launched “Fini’s Feinstes batter

secret—the delicious crispy crust” as an

innovative product for the convenience-

orientated consumer.

Sugar for the foodand beverage industriesHaving consolidated and stabilized, the

Austrian food and beverage industries

continued to strengthen their positions

in Central and Eastern Europe. Austrian

members of the fruit preparations and

soft drinks industries developed particu-

larly well both within the EU and in the

world market.

Sales to the Austrian food and beverage

sector grew from 216,800 metric tons

in 2000/01 to 220,400 metric tons in

the financial year under review.

vests increased sales of preserving sugar

by 11.5 per cent. Sales of special sugar

varieties increased by 8.3 per cent.

Fini’s Feinstes,Küchenperle, FarinaDuring the year under review, market-

ing of our Fini’s Feinstes, Küchenperle and

Farina flour products continued to centre

on the systematic cultivation of those

brands in the consumer segment. We

positioned them as follows:

● Fini’s Feinstes—Austria’s leading

national flour brand;

● Küchenperle—a “traditional”

regional brand in Upper Austria;

● Farina—a supra-regional flour

brand for the provinces of Styria,

Carinthia, Vienna, Lower Austria

and Burgenland.

Sales by volume to manufacturers of

soft drinks increased by 4.6 per cent,

but the closure of an Austrian factory by

a multinational customer dented sales

to the confectionery industry, and the

decline could not be wholly offset by

the success of our other customers in

the confectionery industry. Sales of sugar

to other sections of the food industry

(fruit preparations, etc.) rose by nearly

3 per cent.

Volumes of sugar substitution by

imported sweetened fruit-juice concen-

trates, which attract lower customs

duties, remained very high.


’99/’00

C sugar exports(metric tons)

’00/’01 ’01/’02’99/’00

Quota sugar exports(metric tons)

’00/’01 ’01/’02’99/’00

of whichDomestic sugar sales(metric tons)

’00/’01 ’01/’02

349,4

00

61,9

00

87,

000

340,5

00

105,1

00

325,9

00

56,1

50

19,3

00 61,9

50

“ANM” (sterilizable starch)is used by the cosmetics industry

to make baby, body and foot powders, rouges, eye shadows

and compact powders.( )

270102

There is currently a shortage of beet

molasses in the European marketplace,

keeping prices high.

Volumes and prices of both maize con-

centrates and maize gluten were also

higher than in 2000/01.

Thanks to the growing needs of manu-

facturers of organic products, demand

for potato protein was brisk. Both quan-

tities and prices were up on the year.

Sales of third-party productsSales of merchandise purchased from

other manufacturers came to 465,000

metric tons. This line includes protein

feed, bee food, fondant and invert sugar

syrup.

Sugar for the fermentation,chemical and other industriesThe abolition of the storage levy, tak-

ing it out of calculations of production

refunds (€ 20 per metric ton) made

sugar slightly less attractive to the fer-

mentation industry than starch hydro-

lysate. Nonetheless, we were able to

sell 11,000 metric tons (previous year:

28,000 metric tons) in that segment.

Starches for the foodand beverage industriesSales of starch to the Austrian food and

beverage industries are handled by AMV.

Sales by volume increased by 6.5 per

cent.

By-productsBecause animal feed was in relatively

short supply during 2001/02, dried pulp

sold very well both at home and abroad.

Prices stood at the same relatively nor-

mal levels as the year before.


280102


AGRANA Internationale Verwaltungs-und Asset-Management AG & Co KG

AGRANA Internationale Verwaltungs- und Asset-Management AG & Co KG manages the

operations of all the foreign subsidiaries of AGRANA Zucker und Stärke AG.

AGRANA aims to expand its core business operations in the sugar and starch seg-

ments by acquiring interests in Central and Eastern Europe, and it plans to become

a major player in the countries neighbouring Austria that will be a part of the

European Union’s eastward enlargement. Within those countries, AGRANA’s pri-

mary focus will be on exploiting opportunities to apply its production and mar-

keting expertise in its principal business segments—sugar and starch—and on

developing those segments to ensure its competitiveness within the European

Union. AGRANA’s plans are based not just on transfers of cutting-edge technology

but also on the application of the Group’s wide-ranging know-how in the manu-

facturing, management, marketing, distribution, sales and raw materials fields.

290102

Prevailing conditions in the Hungarian sugar marketSales in the Hungarian sugar market continued to fall in 2001, dropping to 318,000

metric tons (previous year: 336,000 metric tons). 15,000 metric tons of sugar were

imported and 8,000 metric tons exported. Import duties were increased in 2001

to protect Hungary’s national industries and agricultural sector. Growing quanti-

ties of artificial sweeteners are being used in the manufacture of cheap soft drinks

in Hungary. We intend to combat that trend with the help of a public awareness

campaign.

Negotiations for an intertrade agreement between beet farmers and the sugar

industry were concluded in May 2002.

Sugar and starch in Hungary

Subsidiaries in HungarySales by Hungrana Kft.—a processor of

maize into starch and isoglucose—grew

to Ft 30 billion (€ 116 million) during

the 2001 financial year.

Magyar Cukor Rt. closed the 2001 finan-

cial year with net revenues of Ft 19.8 bil-

lion (€ 77 million), which was nearly

10 per cent more than in 2000. Its three

sugar factories (Acs, Kaposvar and Petö-

haza) processed 977,000 metric tons of

sugar beet into 126,700 metric tons of

white sugar in 2001. The sugar factory

in Acs was closed after the end of the

2001 campaign.

Contracts were concluded with farmers

for 980,000 metric tons of beet in 2002.


300102

Sugar in the Czech Republic

Prevailing conditions in the Czech sugar marketThe year under review was dominated by uncertainty as to the conditions that will

prevail in the future. The sugar-market regime introduced in 2000 was abrogated

at the end of February 2001 following a ruling by the constitutional court, and a

new version complying with Czech constitutional law entered into force on 1 August

2001. The new regime provides for a substantially reduced domestic quota of

356,000 metric tons and the imposition of an increased export requirement of

148,000 metric tons on the Czech sugar industry. However, safeguard measures

and the internal monitoring of quotas are both necessary tools for the proper func-

tioning of a market regime along EU lines, and they are still lacking.

The absence of safeguards increased imports into the country, with the result that

the Czech sugar industry only managed to sell 298,000 metric tons of sugar within

the Czech Republic. Thanks to the minimum price—which is decided by the

ministry of finance rather than being directly linked to the sugar-market regime—

sugar prices paid to Czech manufacturers were stable.

Against that background, Moravskoslezské Cukrovary a.s. achieved a market share of

21 per cent in the Czech Republic, selling 62,500 metric tons of white sugar in the

domestic marketplace.

Subsidiaries in the Czech RepublicThe net revenues of Moravskoslezské

Cukrovary a.s. as defined by Czech finan-

cial reporting law increased by 6 per cent

during the 2001 financial/calendar

year to total Kc 1,707 million (€ 50 mil-

lion).


The sugar factories in Hrusovany and

Opava processed 636,000 metric tons

of beet into 91,000 metric tons of sugar

during the 2001 campaign.

310102


Sugar in Slovakia

Prevailing conditions in the Slovakian sugar marketThe Slovakian sugar market has a total annual volume of roughly 180,000 metric

tons. A dramatic drop in sales to about 123,000 metric tons overshadowed the

market during the 2001 financial/calendar year. It was mainly due to imports from

neighbouring countries, sales of sugar from government reserves (the mandatory

crisis stockpile) and a significant increase of about 50 per cent in quantities pro-

cessed within the scope of an inward processing regime, which totalled some

65,000 metric tons. However, the introduction of safeguards from mid-2001 made

it possible to stabilize the situation. Slovenské Cukrovary a.s. had a market share of

roughly 28 per cent.

The draft of a sugar-market regime along EU lines is still under negotiation.

The sugar factories are currently working intensively on improving their control

of inward processing.

Subsidiaries in SlovakiaAs measured by Slovakian financial re-

porting law, Slovenské Cukrovary a.s.

recorded net sales of Sk 940 million

(nearly € 22 million).

Our two sugar factories in Slovakia,

located in Sered and Rimavská Sobota,

processed 381,700 metric tons of beet

into 50,600 metric tons of sugar during

the 2001 campaign.

320102


Sugar in Romania

Prevailing conditions in the Romanian sugar marketRomania’s domestic sugar market had a volume of 456,000 metric tons in 2001

(previous year: roughly 500,000 metric tons). In the absence of effective safeguard

measures, more than 90 per cent of the annual demand for sugar in Romania is

still being met by unrefined sugar imported from Brazil, Cuba and a number of

other countries and refined into white sugar within Romania. In addition, Romania

imported 50,000 metric tons of white sugar in 2001, and the same amount is likely

to be imported in 2002.

On 1 March 2002, a 30 per cent tariff was imposed on imports of unrefined sugar

into Romania, which had previously been exempted from duty.

Subsidiaries in RomaniaOn the applicable balance-sheet date

of 31 December 2001 (effectively 28 Feb-

ruary 2002), AGRANA Zucker und Stärke

AG held the following interests in

Romania:

● S.C. Zaharul S.A. Buzau 82%

● S.C. BETA-Tandarei S.A. 86%

● S.C. Danubiana Roman S.A. 90%

● S.C. A.G.F.D. Tandarei S.A. 100%

The sugar factory in Roman extracted

11,400 metric tons of sugar from 128,800

metric tons of beet during Romania’s

2001 campaign, and the Buzau, Tandarei

and Roman factories made some 131,000

metric tons of white sugar from imported

unrefined sugar during the 2001 finan-

cial year, giving total sugar production

by AGRANA’s Romanian sugar factories

of 142,400 metric tons.

S.C. AGRANA Romania Holding and Trad-

ing Company s.r.l., based in Bucharest,

acts both as the holding company for

the Group’s three sugar factory subsidi-

aries and as AGRANA’s marketing and

sales company in the Romanian market-

place.

Sales by the Buzau sugar factory totalled

ROL 686 billion (€ 26 million), Tandarei

recorded revenues of ROL 396 billion

(€ 15 million), and the Roman sugar

factory’s revenues totalled ROL 540 bil-

lion (€ 21 million) (applying Romanian

accounting standards in each case).

We acquired the S.C. A.G.F.D. Tandarei S.A.

maize starch factory on 21 November

2001.

“AMITROLIT” (starch ether)enhances the adhesiveness of

tile adhesives, fillers and wall mortar.( )

340102

The environment

AGRANA spent roughly € 171 million on

environmental protection in Austria be-

tween 1988 and 2001. That was rough-

ly half of the total investment outlay

of the Group’s sugar and starch divi-

sions. The principal emphases were

energy and water management.

The success of AGRANA’s efforts to pro-

tect the environment is amply illustrat-

ed by the sugar factories’ energy usage.

The processing heat and electrical

energy needed to process the sugar beet

(beet has a water content of about 75 per

cent) is created by combined heat and

power generating plants (steam and gas

turbines). The highly efficient use of

energy resources reduced our consump-

tion of fossil fuels and, consequently,

cut specific emissions. Thanks to our

investment outlay on cutting energy con-

sumption, our specific energy usage has

fallen by over 27 per cent since 1990.

Over the same period, CO2 emissions in

relation to campaign energy consump-

tion have fallen by 30 per cent. The

Austrian sugar industry has therefore

not only played a significant part in

protecting the environment but also

long since gone achieved and surpassed

the goals laid down at Kyoto (namely

to reduce CO2 emissions in Austria by

13 per cent between 1990 and 2010).

Roughly half of the beet delivered to

the sugar factories in Hohenau, Leopolds-

dorf and Tulln arrives by rail, and about

one third of the potatoes processed by

the starch factory in Gmünd are deliv-

ered by rail.

Hygiene is essential when manufactur-

ing foodstuffs. AGRANA Zucker und Stärke

AG applies a HACCP concept (hazard

analysis and critical control points) that

is constantly updated in line with the

latest research.

AGRANA uses natural hop extracts for

disinfecting purposes. The technique

was developed by research subsidiary

Zuckerforschung Tulln Ges.m.b.H. Inter-

The environment AGRANA Beteiligungs-AG

2001

Kyoto goals:Planned emission reductions under the Kyoto protocol on a 1999 basis

2010 2010

AG

RAN

AZu

cker

(13%

)

Aus

tria

EUge

sam

t

(8%

)

(22%

)1

–––––––––1 In relation to total annual

energy consumption

350102

national patents have been awarded.

Natural gas has been AGRANA’s sole

source of primary energy since 1996.

Closed circuits and the biological

sewage clarification systems installed

at all our sugar and starch factories in

Austria have optimized the manage-

ment of water resources. Processing and

treating the earth stuck to the beet when

it arrives at the factory is of great eco-

logical importance. The installation of

so-called soil cassettes with a period of

storage of three year has made it possi-

ble to drain and stabilize the earth and

return it to the field.

Both the sugar factories and the potato

starch factory in Gmünd sell the by-

products of their manufacturing pro-

cesses—so-called Carbokalk and potato

run-off—as high-grade soil enhancers.

We have greatly improved the sound

insulation and filter systems at all our

factories during the past few years to

control noise and dust pollution. Exten-

sive measures were taken to reduce dust,

odour and noise pollution during the

final stage of development at the Aschach

maize starch factory. In addition, a

modern biological filter system for re-

moving organic odoriphores now cleans

exhaust flows from the by-product lines.

We offer beet and potato growers com-

prehensive commercial and ecological

advice. Soil analyses using electro-ultra-

filtration (EUF) enable us to develop pre-

cise fertilization recommendations, in

turn making sure that each plant only

gets exactly what it needs to grow in

addition to the nutrients already avail-

able in the soil without over-fertilizing

the land or dirtying the ground water

below. The gypsum absorber block method

for measuring moisture in the soil near

the root of the plant guarantees that

beet fields are irrigated at exactly the

right time.

The environment AGRANA Beteiligungs-AG

360102

Research and development

Research and development AGRANA Beteiligungs-AG

The research and development pro-

gramme for the entirety of the AGRANA

Group is in the hands of Zuckerforschung

Tulln Ges.m.b.H. and its 46 staff-mem-

bers. The company’s activities cover a

broad range of fields from agriculture

to food technology, chemistry and other

technological disciplines to microbiol-

ogy and biotechnology.

The Sugar DivisionAGRANA’s sugar factories are now also

successfully using pine resin acids in

diffusers in addition to hop extracts to

steer fermentation processes and there-

fore to prevent sugar losses. Patents are

pending for the process.

We have continued to refine a technique

for storing thick juice in tanks under

an alkali top coating. The deterioration

that can be prevented as a result is a

particularly big problem when the tem-

perature is raised or the dry content is

too low.

To continue to cut consumption of pro-

cess materials during sugar extraction,

we have developed special de-foaming

cones that permit the effective mecha-

nical breakdown of lather. This develop-

ment has led to another reduction in

the sugar factories’ usage of anti-foam-

ing agents, helping us remain true to

AGRANA’s technological precepts. In

addition, the system has greatly decreased

costs. It is also being used with success

by the Starch Division.

To systematically reduce lime usage,

Tulln has for a number of years—and

with growing success—been testing a

process to admix milk of lime in pre-

cisely the required quantities. Using

this technique, milk of lime is not added

according to the juices’ alkalinity. In-

stead, the right quantity is calculated

on the basis of filter pressure and volu-

metric measurements. The admixture

algorithm developed for the Tulln fac-

tory permitted trouble-free processing

during the 2001 campaign despite a sub-

stantial reduction in the usage of milk

of lime. The procedure has now reached

a degree of maturity and is suitable for

use by factories with concentrating fil-

ters. During the most recent campaign,

it proved its worth for the first time in a

simplified form at our Kaposvar factory

in Hungary.

The work of the Agricultural Department

at Zuckerforschung Tulln—a certified test-

ing laboratory for seed varieties and crop

protection chemicals under European

standard ÖNORM EN 45001:1990—is sub-

divided into production engineering

trials, advisory services, the dissemina-

370102

500 demonstration plots and numerous

poster exhibits.

We launched a project called BETAEXPERT

which aims to develop an IT-supported

regionally differentiated warning system

for the integrated combating of beet

leaf blight.

The Starch DivisionThe enlargement of our technical facili-

ties increased the efficiency and effective-

ness of Zuckerforschung Tulln Ges.m.b.H.’s

use of its numerous opportunities to

make new products on a pilot scale. The

resulting pilot systems yield important

information about the working proper-

ties of individual potato, waxy maize and

maize variants and allow us to evaluate

the properties and possibilities of starches

made with specific potato varieties.

The success of AGRANA’s development

of starch products for use as additives

in the construction industry has been

the fruit of intensive research and devel-

opment work carried out on a true-to-

practice basis in close collaboration with

companies in the sector. We will con-

tinue to push the use of special starch

ethers to inhibit rebound during tunnel

building. New products are being devel-

oped in a number of areas, including

plaster, mortar, tile adhesion and gyp-

Research and development AGRANA Beteiligungs-AG

sum plaster boards.

The development of new printing thick-

eners for reactive printing added another

textiles segment (dispersion printing)

to the product line.

We continued to extend our services for

the paper and corrugated cardboard

industries during the year under review

by broadening the range of analyses

that can be carried out on-the-spot. The

analytical and applications support pro-

vided to paper manufacturers in connec-

tion with their use of starch products

has become a key area of service to the

paper sector, contributing to AGRANA’s

outstanding reputation in this field.

The systematic examination of ways of

physically modifying maize starches and

waxy maize starches and the application

properties of the resulting products for

the food and beverage industries created

the basis for the development of new

organic starches with enhanced charac-

teristics.

We applied for national and interna-

tional patents for further applications

for our amyl pectin potato starch within

the scope of the Group’s “amylose-free”

potato starch project. A number of new

developments were added to the range

of organic starches for use in foods and

beverages.

tion of information, and the rendering

of support services.

Healthy soil and sustainable soil fertil-

ity are key prerequisites for reliable and

cheap beet production. Special attention

was paid to intermediate crops during

soil processing trials in the year under

review, and analyses were carried out

on the basis of 9,500 soil samples using

electro-ultra-filtration (EUF). Fertilization

recommendations for sugar beet and

potatoes were then prepared from those

analyses.

In all, the Agricultural Department car-

ried out field trials at 34 locations in

Austria’s beet growing region and evalu-

ated some 3,500 trial plots to test the

effectiveness, tolerance and compatibi-

lity of means of production and pro-

cesses. In addition, 5,500 beet samples

were examined for yield and internal

quality.

We continued our BETAEXPO advisory

project. This is a year-round presenta-

tion of products, methods, processes,

ideas and techniques for advanced beet

growing and of the current varieties that

are available for making starch from

maize and potatoes. It is designed to in-

form the producers of our raw materials.

It consists of an exhibition field measur-

ing roughly 6 hectares containing about

The AGRANA Group employed an aver-

age of 4,463 staff during the 2001/02

financial year (previous year: 4,753). The

total was made up of 1,341 employees

in Austria (previous year: 1,316) and

3,122 staff working for foreign Group-

members (previous year: 3,437). That

represented an increase of 25 in the

Austrian Starch Division, but the num-

ber of staff working for foreign Group-

members fell by 315. The Group’s aver-

age total workforce during the year was

290 smaller than in 2000/01.

On our reporting date (28 February

2002), 1,276 people were working for

the Group in Austria (previous year:

1,251) and the foreign Group-members

had a combined workforce of 2,291

(previous year: 2,696), making 3,567 in

all (previous year: 3,947). That end-of-

period figure reflected not only staffing

levels outside the duration of process-

ing campaigns but also the rationaliza-

tions that had taken place within the

Group.

The Austrian members of the AGRANA

Group spent € 420 thousand (previous

year: € 425 thousand) on basic and ad-

vanced staff training during the 2001/

2002 financial year. The primary focuses

of that outlay were on information

technology, personality development

seminars, honing the English-language

skills of all staff-members working in

international departments, seminars in

the marketing and sales fields and prac-

tical training and apprentice training.

Management and behavioural training

consisted of several one-on-one coaching

programmes targeting communication

proficiencies and personality develop-

ment as well as in-house workshops for

management staff in Austria and at the

Group’s foreign subsidiaries. In addition,

meetings were organized for young

management personnel who had just

joined the Group to give them an oppor-

tunity to talk to older staff and exchange

information.

Apprenticeship training is an important

aspect of our activities. On 28 February

2002, our Austrian Group-members were

training 43 apprentices. The most impor-

tant apprenticeship professions were

engine fitter and the combined trades

of engine fitter/lathe operator and works

electrician/process control technician.

Staff and social report

Staff and social report AGRANA Beteiligungs-AG

’99/’00

The workforce

’00/’01 ’01/’02

Austria

Hungary

Czech Republic

Romania

Slovakia

5,2

90

4,7

53

380102

4,4

63

390102

Outlook for 2002/03

AustriaThe Austrian Sugar Division concluded

contracts with 10,000 farmers to plant

some 44,600 hectares with beet for the

2002 harvest. Following the fresh con-

tracting of 3,000 hectares made neces-

sary by heavy precipitation, initial

growth was even and yields were good.

The crop’s development this year has

been in line with long-term averages.

We expect a beet harvest of 2.7 million

metric tons.

Aggregate sugar sales in March and April

2002 were slightly up on the year. House-

hold sugar sales increased slightly, but

sales to the food and beverage industries

were down on the year. Exports of both

quota and C sugar increased.

In the Sugar Division, our three Austrian

sugar factories will be investing € 14.5

million this year. Investments will

focus primarily on packaging plants,

pulp presses, centrifuges and a plant for

extracting betaine from molasses in

Tulln. To that end, the molasses desac-

charification plant in Tulln will be re-

equipped to make it possible to break

down molasses further into its compo-

nents and thus to extract enriched be-

taine alongside the sugar contained in

the molasses.

Starch potato agreements were con-

cluded with 2,000 farmers for a total of

213,500 metric tons of starch potatoes

(previous year: 222,900 metric tons) and

with 320 farmers for 11,200 metric tons

of potatoes for the food industry (pre-

vious year: 12,300 metric tons). Further-

more, 176 farmers will be delivering

roughly 6,600 metric tons of organic

potatoes (previous year: 3,000 metric

tons). Initial growing conditions for the

potato crop have been good.

Starch sales by both value and volume

during the first two months of the cur-

rent financial year were higher than in

the same period of 2001/02. During

this financial year, we will be investing

€ 8.5 million in improving quality and

increasing capacities at the Aschach

maize starch factory and the Gmünd

potato starch factory.

SubsidiariesThe AGRANA sugar factories contracted

the following quantities of beet for the

2002 harvest:

Beet

Hungary 980,000 metric tons

Czech Republic 685,000 metric tons

Slovakia 350,000 metric tons

Romania 220,000 metric tons

Outlook for 2002/03 AGRANA Beteiligungs-AG

400102

Conditions were largely satisfactory.

Planting in Central and Eastern Europe

was completed in the third week of

April 2002.

From 2002, refining of unrefined sugar

by AGRANA in Romania will mostly take

place in the S.C. Zaharul Buzau S.A. fac-

tory from 2002. As in previous years,

S.C. Danubiana Roman S.A. will be pro-

cessing mainly beet and a little unrefined

sugar. Beet contracts for 12,000 hectares

more than in 2001 have been concluded

for the current year. S.C. Beta Tandarei

S.A. will be used as a storage and sales

base for sugar and starch. In addition,

it will also administer and manage the

newly acquired S.C. A.G.F.D. Tandarei S.A.

starch factory, which is in the imme-

diate vicinity.

At the time of writing, we expect the

AGRANA Group to record smaller reve-

nues but stable profits following a reduc-

tion in trading activities in order to

focus on the more profitable segments.

AGRANA’s results in the 2001/02 finan-

cial year were good, with an EBIT margin

of 9.0 per cent and a ROS of 7.6 per cent.

We will do everything we can go on

improving our results during the current

financial year. The efficient manage-

ment of costs, innovations in the prod-

uct and processing fields and the con-

tinuation of product optimizations

throughout the enterprise will all be

needed if we are to stay successful.

Outlook for 2002/03 AGRANA Beteiligungs-AG

410102

20012002Consolidated Financial

Statementsof the AGRANA Group applying IAS

420102

28 February End ofA S S E T S Note 2002 previous year

€ € 1,000sA. Non-current assets (1)

I. Intangible non-current assets 26,949,879 25,583II. Tangible non-current assets 271,719,416 286,103III. Financial investments 68,516,877 72,005

367,186,172 383,691B. Current assets

I. Inventories (2) 278,959,359 259,495II. Receivables and other assets (3) 124,668,485 107,443III. Financial instruments (4) 13,643,978 10,864IV. Cash, cheques, bank balances 83,471,111 92,445

500,742,933 470,247C. Deferred items 652,140 751

Total assets 868,581,245 854,689

E Q U I T Y A N D L I A B I L I T I E S

A. Equity (5)I. Share capital 80,136,625 80,137II. Capital reserves 213,463,220 213,463III. Retained earnings reserves 76,257,339 49,777IV. Consolidated profit for the year 44,324,805 37,574

414,181,989 380,951B. Minorities 8,759,527 8,975

C. Provisions (6 –8) 167,620,264 146,813

D. Payables (9) 272,511,726 314,926

E. Deferred items 5,507,739 3,024

Total equity and liabilities 868,581,245 854,689

Contingent liabilities and other financial obligations (11) 12,525 11,951

Consolidated Financial Statements for 2001/02 The AGRANA Group

Consolidated Balance Sheetdated 28 February 2002

430102

2001/02 Previous yearNote € € 1,000s

1. Sales revenues (12) 842,795,871 760,2202. Changes in stocks of finished

and unfinished products (13) 7,458,148 523. Other capitalized self-produced items (13) 752,802 5624. Other operating income (14) 22,130,486 39,5695. Expenditure on materials and

expenditure on purchased services (15) (528,636,758) (450,845)6. Expenditure on staff (16) (93,650,725) (90,920)7. Depreciation/amortization of intangible

non-current assets (without goodwill)and tangible non-current assets (17) (42,222,031) (41,815)

8. Other expenses (18) (132,612,360) (150,085)

9. Operating profit/(loss) (subtotal of items 1 – 8) 76,015,433 66,738

10. Amortization of goodwill (2,593,380) (5,487)11. Net income from restructuring (19) (3,135,931) 012. Net operating income (subtotal of items 1 – 11) 70,286,122 61,251

13. Net interest income (20) (6,776,599) (9,712)14. Net income from substantial

and permanent interests (21) 2,821,872 1,70415. Other financial profit/(loss) (22) (2,228,972) (2,024)16. Net financial income (subtotal of items 13 – 15) (6,183,699) (10,032)

17. Profit before income tax 64,102,423 51,21918. Income tax expense (23) (20,508,315) (13,590)

19. Profit after income tax 43,594,108 37,62920. Minority interests in consolidated profit for the year 730,697 (55)

21. Consolidated profit for the year 44,324,805 37,574

Earnings per share € 4.02 € 3.41


Consolidated Income Statementfor the 2001/02 financial yearfrom 1 March 2001 through 28 February 2002

440102

Consolidated Non-Current Assets Summaryas on 28 February 2002


Costs of purchase and/or conversion

Changes in Changes in1 March Consolidated foreign ex- Additions Reallocations Disposals Write-ups 28 February

2001 Group change rates 2002€ 1,000s € 1,000s € 1,000s € 1,000s € 1,000s € 1,000s € 1,000s € 1,000s

A. Non-current assets

I. Intangible

non-current assets

1. Commercial privileges,

licences 16,301 71 127 480 (3) 319 0 16,657

2. Goodwill 32,632 3,755 55 0 0 0 0 36,442

48,933 3,826 182 480 (3) 319 0 53,099

II. Tangible non-current assets

1. Land, land-equivalent rights,

buildings 242,225 2,843 3,983 7,516 3,566 8,053 0 252,080

2. Technical plant and

machinery 489,265 1,365 6,328 16,386 5,976 5,179 0 514,141

3. Other plant, office furniture

and equipment 54,021 454 639 3,662 17 1,692 0 57,101

4. Prepayments and

plant under construction 12,483 140 443 964 (9,556) 1,040 0 3,434

797,994 4,802 11,393 28,528 3 15,964 0 826,756

III. Financial investments

1. Interests in subsidiaries 7,462 (2,033) 0 0 0 0 0 5,429

2. Interests in associates 25,157 0 0 2,999 0 110 0 28,046

3. Interests in other

enterprises 9,203 0 5 210 0 9 0 9,409

4. Loans to companies in which

the Group holds substantial

and permanent interests 275 0 30 0 0 53 0 252

5. Securities classified as

financial investments 28,137 25 22 3,153 0 7,890 (464) 22,983

6. Other loans 192 0 13 22 0 63 0 164

7. Interests in companies

with controlling interests

in the Group 9,263 0 0 3,330 0 0 0 12,593

79,689 (2,008) 70 9,714 0 8,125 (464) 78,876

Total non-current assets 926,616 6,620 11,645 38,722 0 24,408 (464) 958,731

450102


Depreciation and amortization Book values

Changes in Changes in Depreciation/1 March Consolidated foreign ex- amortization Reallocations Disposals 28 February 28 February 28 February

2001 Group change rates during year 2002 2002 2001€ 1,000s € 1,000s € 1,000s € 1,000s € 1,000s € 1,000s € 1,000s € 1,000s € 1,000s

15,737 57 107 406 8 317 15,998 659 564

7,613 (87) 32 2,593 0 0 10,151 26,291 25,019

23,350 (30) 139 2,999 8 317 26,149 26,950 25,583

124,383 2,154 1,767 9,655 (7) 4,727 133,225 118,855 117,842

346,412 768 3,863 30,811 (8) 4,921 376,925 137,216 142,853

40,995 360 435 4,451 7 1,497 44,751 12,350 13,026

101 0 0 35 0 0 136 3,298 12,382

511,891 3,282 6,065 44,952 (8) 11,145 555,037 271,719 286,103

1,997 0 0 1,378 0 0 3,375 2,054 5,465

1,837 0 0 1,099 0 0 2,936 25,110 23,320

2,373 0 3 4 0 5 2,375 7,034 6,830

275 0 31 0 0 54 252 0 0

1,201 0 1 231 0 12 1,421 21,562 26,936

0 0 0 0 0 0 0 164 192

0 0 0 0 0 0 0 12,593 9,262

7,683 0 35 2,712 0 71 10,359 68,517 72,005

542,924 3,252 6,239 50,663 0 11,533 591,545 367,186 383,691

460102


Development of consolidated equityand minoritiesas on 28 February 2002

1 March Consolidated profit Dividends Allocated to2001 for the year paid reserves

€ 1,000s € 1,000s € 1,000s € 1,000s

Subscribed capital 80,137 0 0 0

Capital reserves 213,463 0 0 0

Retained earnings 64,983 0 0 24,719

Revaluation reserve 2,571 0 0 0

Accumulatedexchange differences (17,776) 0 0 0

Retained earnings reserves 49,778 0 0 24,719

Consolidated profit for the year 37,574 44,325 (12,855) (24,719)

Equity 380,952 44,325 (12,855) 0

Minorities 8,975 (731) (39) 0

–––––––––1 Other changes resulted primarily from the reallocation of the revaluation reserve of a subsidiary in accordance with IAS that did not affect profit.

1 March Consolidated profit Dividends Allocated toas on 28 February 2001 2000 for the year paid reserves

€ 1,000s € 1,000s € 1,000s € 1,000s

Subscribed capital 80,137 0 0 0

Capital reserves 213,463 0 0 0

Retained earnings 54,979 0 0 10,206

Revaluation reserve 0 0 0 0

Accumulatedexchange differences (16,335) 0 0 0

Retained earnings reserves 38,644 0 0 10,206

Consolidated profit for the year 22,544 37,574 (12,338) (10,206)

Equity 354,788 37,574 (12,338) 0

Minorities 8,939 55 0 0

–––––––––2 Other changes contains the release of funds in connection with a lease transaction by a subsidiary at the amount of € 3.8 million that did not affect profit.

470102


Changes in foreign Changes in the Own shares Other 28 Februaryexchange rates revaluation reserve changes1 2002

€ 1,000s € 1,000s € 1,000s € 1,000s € 1,000s

0 0 0 0 80,137

0 0 0 0 213,463

0 0 0 (3,487) 86,215

0 (359) 0 0 2,212

5,606 0 0 0 (12,170)

5,606 (359) 0 (3,487) 76,257

0 0 0 0 44,325

5,606 (359) 0 (3,487) 414,182

300 1 (1,036) 1,290 8,760

Changes in foreign Changes in the Own shares Other 28 Februaryexchange rates revaluation reserve changes 2 2001

€ 1,000s € 1,000s € 1,000s € 1,000s € 1,000s

0 0 0 0 80,137

0 0 0 0 213,463

0 0 0 (202) 64,983

0 2,571 0 0 2,571

(1,441) 0 0 0 (17,776)

(1,441) 2,571 0 (202) 49,778

0 0 0 0 37,574

(1,441) 2,571 0 (202) 380,952

(261) 0 0 242 8,975

480102

Consolidated Cash-Flow Statementfor the 2001/02 financial year


2001/02 2000/01€ 1,000s € 1,000s

Profit after income tax 43,594 37,629

Depreciation/amortization of non-current assets 50,663 49,250

Changes in long-term provisions (2,925) 12,831

Profits transferred from associates (95) (110)

Gains/(losses) arising from deconsolidations and gains/(losses)arising from disposals/retirements of non-current assets (835) (931)

Net cash from profit 90,402 98,669

Changes in inventories (18,577) (448)

Changes in receivables, deferred tax assetsand other deferred items (15,552) 10,368

Changes in other provisions 23,437 (14,759)

Changes in payables and deferred items (18,859) (7,173)

Effect on non-fund positions ofchanges in foreign exchange rates 216 (651)

Net cash from operating activities 61,067 86,006

Income arising from disposals/retirementsof non-current assets 13,714 9,796

Expenditure on investments in tangibleand intangible non-current assets (29,008) (38,191)

Expenditure on financial investments (9,619) (7,205)

Changes in the Consolidated Group (2,133) (7,278)

Net cash from investing activities (27,046) (42,878)

490102


2001/02 2000/01€ 1,000s € 1,000s

Changes in long-term financial obligations (21,210) (3,596)

Changes in short-term financial obligations (5,498) (19,840)

Dividends paid (12,894) (12,338)

Acquisition of our own shares from a subsidiary (1,036) 0

Investment grants 0 446

Net cash from financing activities (40,638) (35,328)

Net increase/(decrease) in cash and cash equivalents (6,617) 7,800

Effect of changes in foreign exchange rateson cash and cash equivalents 318 (34)

Remeasurements in accordance with IAS 39 105 0

Cash and cash equivalents at beginning of period 103,309 95,543

Cash and cash equivalents at end of period 97,115 103,309of which available-for-sale securities 13,644 10,864

of which means of payment 83,471 92,445


General principlesThe AGRANA Group’s Consolidated Financial Statements for 2001/02 were drawn

up in accordance with the International Accounting Standards (IAS) as published by

the International Accounting Standards Board (IASB) inclusive of the interpretations

issued by the Standing Interpretations Committee (SIC) as applicable to the financial

year under review. The financial statements of the fully consolidated companies

accounted for in the Consolidated Financial Statements were subject to homoge-

neous recognition and measurement policies. When preparing the Consolidated

Financial Statements, we observed the principles of intelligibility, clarity and mate-

riality. The total costs method was used in the Income Statement.

The financial statements of all principal fully consolidated Group-members and of

all fully consolidated Group-members that were subject to compulsory audits under

national legislation, whether domestic or foreign, were audited by independent

auditors and received unqualified auditors’ certificates. The auditors also attested

the proper transition between local annual financial statements drawn up under

commercial law and the IAS-compliant individual financial statements drawn up

according to policies applied homogeneously throughout the Group.

Consolidation policiesConsolidated Group

Besides AGRANA Beteiligungs-AG, the Consolidated Financial Statements generally

accounted for all domestic and foreign Group-members in which AGRANA Beteili-

gungs-AG held direct or indirect voting majorities or which were under its sole con-

trol and which were not Group-members of minor importance. On the balance-

sheet date, 21 companies (previous year: 21 companies) were integrated into the

Consolidated Financial Statements as fully consolidated subsidiaries, two of them

for the first time. Two companies (previous year: 2 companies) underwent pro-

portionate consolidation in proportion to the stake in them held by the Group.

Taking both mergers and deconsolidations into account, the number of consoli-

dated companies was unchanged.

500102

Notes to the ConsolidatedFinancial Statements of the AGRANA Group


Changes in the Consolidated Group arose as follows:

Added

● RUMA Handelsgesellschaft m.b.H., Hagenbrunn, Austria

● S.C. A.G.F.D. Tandarei S.A., Tandarei, Romania

Excluded

● Kaposvari Cukor Menedzsment Kft., Budapest, Hungary

Changes arising from mergers

● Cukrovar Nova a.s., Sered, Slovakia and

● Gemercukor a.s., Rimavská Sobota, Slovakia

were merged to create

● Slovenské Cukrovary a.s., Rimavská Sobota, Slovakia

The effect of changes in the Consolidated Group on the Consolidated Financial

Statements was reflected by the following changes in items on the Balance Sheet

and in the Income Statement:

€

Non-current assets 5,357,428

Current assets (2,246,758)

Total Assets 3,110,670

Minorities 1,217

Provisions and payables 3,109,453

Total Equity and Liabilities 3,110,670

Sales revenues 7,866,088

Profit for the year after tax 89,579

510102


HUNGRANA Kft., Szabadegyhaza (Hungary), which is a 50 per cent subsidiary of AGRANA

Zucker and Stärke AG, Vienna, underwent proportionate consolidation. Entries on

the Consolidated Balance Sheet pertaining to companies consolidated on a pro-

portionate basis consisted of non-current assets of € 19.1 million (previous year:

€ 19.2 million), current assets of € 13.2 million (previous year: € 8.7 million), equity

of € 15.0 million (previous year: € 14.0 million) and provisions and payables of

€ 17.3 million (previous year: € 13.9 million). In the Income Statement, those com-

panies accounted for sales revenues of € 58.1 million (previous year: € 43.6 mil-

lion).

One Austrian company (previous year: 1 company) was accounted for as an asso-

ciate using the equity method. Because of their minor overall significance, two Group-

members were not accounted for using the equity method, and were instead ac-

counted for on the Consolidated Balance Sheet at amortized cost.

Consolidation

Capital underwent consolidation using the purchase method, offsetting cost against

the Group’s interest in the equity of Group-members concerned at the time of their

acquisition or first-time consolidation. Differences between the applicable propor-

tion of equity and the cost of acquisition were recorded as goodwill. Goodwill was

captured under intangible non-current assets and is being amortized over its ex-

pected useful life (generally over 20 years on a straight-line basis) in accordance with

IAS 22. Interests in non-consolidated subsidiaries were recorded at cost. Associates

were accounted for using the equity method.

Intragroup sales, expenses and income as well as all receivables, payables and pro-

visions resulting within the scope of relations between the consolidated Group-

members were eliminated. Write-downs of interests in included companies were

reduced in favour of consolidated profit for the year insofar as the associated risks

had already been allowed for by way of the integration of those companies’ indi-

vidual financial statements. Assets arising from intragroup deliveries as reported

under non-current assets and inventories were adjusted by the amount of inter-

company results.

As permitted by IAS 27, interim financial statements were not drawn up for consoli-

dated Group-members whose balance-sheet dates (i.e. 31 December 2001 or 31 Janu-

ary 2002) differed from the balance-sheet date of AGRANA Beteiligungs-AG (28 Feb-

520102


ruary 2002) because their balance-sheet dates were not more than three months

before the Consolidated Group’s balance-sheet date.

Because of the uniform nature of our activities, segment reporting was unnecessary.

Foreign-currency translationThe annual financial statements of foreign Group-members were translated into

euros in accordance with IAS 21 on the basis of the applicable foreign currency in

each case. In every country except Romania, that was the local currency of the coun-

try concerned on the grounds that foreign Group-members were trading autono-

mously from a financial, commercial and organizational point of view. Because of

the need for hyperinflation accounting (IAS 29), the euro (€) was applied as the applic-

able currency in the case of Romanian Group-members. Their non-current assets,

other assets and debts were translated on that basis applying the middle rate of

exchange ruling on the balance-sheet date. Expenses and income were translated

at the annual average rate of exchange.

Translations of the annual financial statements in hyperinflationary economies

took place in accordance with IAS 29 by correcting for the effects of inflation on a

purchasing-power basis.

The exchange rates underlying foreign-currency translations versus the euro of the

currencies that are of importance to the AGRANA Group developed as follows:

Country Currency Rate on reporting date Average rateunit 2001/02 2000/01 2001/02 2000/01

€ € € €

Romania € 1.00 1.00 1.00 1.00

Czech Republic Kc 31.99 35.47 34.07 35.65

Hungary Ft 245.96 264.93 256.74 260.75

Slovakia Sk 42.76 44.04 43.27 42.76

Within the individual financial statements of consolidated companies drawn up in

local currencies, receivables denominated in foreign currencies were translated at

the lower of the bankers’ buying rate on the date of entry and the bankers’ buying

rate on the balance-sheet date. Payables denominated in foreign currencies were

translated at the higher of the bankers’ selling rate on the date of entry and the

bankers’ selling rate on the balance-sheet date.

530102


Recognition and measurementIn accordance with IAS 22, goodwill was assigned a maximum useful life of 20 years.

Other intangible non-current assets acquired for valuable consideration were cap-

tured at cost and are amortized per schedule over their expected useful lives of

between five and 15 years.

Tangible non-current assets were valued at cost of purchase and/or conversion less

scheduled depreciation and unscheduled write-downs. Besides material and labour

costs, overheads on a prorated basis were included in the conversion costs of self-

produced assets. Financing costs were not included.

In accordance with IAS 20, public assistance received for purchasing or converting

assets (capital investment grants and allowances) were recorded under prepaid

income. Low-value assets were written-off in full in their year of acquisition.

For the most part, scheduled depreciation of tangible non-current assets is based

on the following useful lives:

● Buildings 30 to 50 years

● Technical plant and machinery 10 to 15 years

● Office furniture and equipment 3 to 10 years

Interests in associates, insofar as not of minor significance, were accounted for at

book values using the equity method.

Financial instruments held-to-maturity were recognized at cost or, if a permanent

impairment was to be expected, at a lower market or stock-exchange price. Other

financial instruments were recognized at market values, and changes in valuations

were carried to the revaluation reserve.

Loans were recognized at nominal values. Non-interest-bearing and low-interest

long-term loans were recorded at present values.

If, applying the policies described above, carrying values of non-current assets were

higher than the fair values attributable to them on the balance-sheet date, that was

taken into account by way of unscheduled write-downs.

Inventories were shown at the lower of cost of purchase and/or conversion and net

realizable value. The average-value method was applied. In accordance with IAS 2,

the conversion costs of unfinished and finished products included reasonable pro-

portions of the necessary material costs and production overheads inclusive of

540102


depreciation of manufacturing plant (assuming normal usage) as well as administra-

tive costs in addition to directly attributable unit costs. Financing costs were not

taken into account. Insofar as inventories were at risk because of longer periods of

storage or reduced usability, valuation markdowns were carried out.

Receivables recognized as current assets were capitalized at nominal values. Ade-

quate revaluation reserves were allocated to allow for the counterparty risks and

other risks associated with receivables.

Capitalization of available-for-sale financial assets took place at stock-market values

as at the end of the financial year in accordance with IAS 39.

Write-backs to non-current and current assets were carried out if the reasons for

prior unscheduled write-downs no longer existed.

Provisions for the retirement benefit, severance/redundancy payment and anniver-

sary bonus obligations of Austrian Group-members were measured using the inter-

nationally accepted projected unit credit method in accordance with IAS 19. Expert

actuarial opinions were obtained to that end. The measurement of such provisions

was based on trend extrapolations of the future development of remunerations,

retirement benefits and fluctuations and on a discounting rate of 6 per cent.

Other provisions were allocated at the amounts permitted by IAS 37, capturing all

identifiable risks and indefinite liabilities as at the time of their probable occur-

rence.

Tax deferrals were calculated on the basis of the differences between the IAS-com-

pliant Balance Sheet and the tax base with respect to valuations of assets, equity

and liabilities, on the basis of processes during consolidation and on the basis of

realizable loss carryforwards. Deferred tax assets were shown under other assets,

whereas deferred tax liabilities were reported as provisions. Deferred tax assets were

offset against deferred tax liabilities in cases where income taxes were to be collected

by the same tax authority. Tax deferrals were calculated using the internationally

customary liability method (IAS 12), taking into account the pertinent national rates

of income taxation. Consequently, with the exception of goodwill arising on con-

solidation, tax deferrals were recognized for all temporal differences in recognition

and measurement between the IAS-compliant Balance Sheet and the tax base,

regardless of whether or not those differences were to be neutralized within a reason-

able period. There were significant differences between the tax base and the IAS-

550102


compliant Balance Sheet in the following items: tangible non-current assets, inven-

tories, provisions. Deferred tax assets were capitalized with respect to tax loss carry-

forwards insofar as they were usable within three years.

In accordance with IAS 36 (Impairment of assets), assets for which there was evidence

of impairment and where the present values of net recoverable amounts were below

their book values were remeasured to possible individual net selling prices or realiz-

able values.

All payables were recognized at amounts payable.

The risks associated with contingent liabilities and other financial obligations were

covered by adequate provisions.

NOTES TO THE BALANCE SHEET

(1) Non-current assetsInvestments in intangible and tangible non-current assets totalled € 29.0 million

(previous year: € 38.2 million) within the Group (without additions resulting from

the enlargement of the Consolidated Group). Goodwill and undisclosed reserves

resulting from corporate acquisitions were recognized under the heading of Changes

in the Consolidated Group.

A breakdown of the non-current asset items subsumed under one heading on the

Balance Sheet and of their development is provided on page 44.

Intangible non-current assets

This item consists mainly of the goodwill arising from corporate acquisitions from

the 1995/96 financial year, capitalized in accordance with IAS 22. It also includes

purchased computer software and industrial property rights and similar rights.

Additions of goodwill arising from the first-time consolidation of the new Group-

members were largely due to the acquisition of interests in companies in Austria

and Romania. Goodwill from the consolidation of capital remaining after making

allowance for undisclosed reserves is being amortized according the patterns of its

utilization as laid down in IAS 22.

560102


Tangible non-current assets

The effects of changes in the Consolidated Group are shown in a separate column.

The effect of changes in foreign exchange rates comprises the effects of differences

in rates applied during currency translations of assets of foreign Group-members at

the beginning and at the end of the year.

Financial investments

Financial investments totalled € 24.7 million at the end of the reporting period.

The Non-Current Assets Summary shows investments totalling € 9.7 million (previ-

ous year: € 7.3 million). The difference of € 15.0 million was accounted for by fully

consolidated subsidiaries.

Financial investments undertaken during the reporting period comprised the pur-

chase of financial instruments as cover for so-called social capital and participation

in the capital increase at Südzucker AG Mannheim/Ochsenfurt.

The balance-sheet entry for Interests in subsidiaries decreased from € 5.5 million to

€ 2.1 million because of the addition of one company to the circle of fully consoli-

dated Group-members. On the balance-sheet date, the accounts showed only book

values for companies excluded because of their minor significance.

The additions to Interests in associates included € 94.9 thousand due to valuation

changes arising from use of the equity method.

(2) Inventories28 February 2002 2001

€ 1,000s € 1,000s

Raw materials, process materials, supplies 23,553 16,605

Unfinished products 1,228 191

Finished products, merchandise 254,045 242,604

Prepayments 133 95

Total 278,959 259,495

570102


(3) Receivables and other assets28 February 2002 2001

€ 1,000s € 1,000s

Accounts receivable for goods and services 67,258 63,171

Accounts receivable from subsidiaries 1,058 677of which with a maturity of more than 1 year [412]

Accounts receivable from associates 1,964 2,363of which with a maturity of more than 1 year [355]

Accounts receivable from other companiesin which the Group holds substantialand permanent interests 1,340 3,614

Other assets 53,048 37,618of which with a maturity of more than 1 year [3,005] [4,325]

of which deferred tax assets [2,628] [4,812]

Total 124,668 107,443

Accounts receivable from subsidiaries derived exclusively from accounts with the

excluded Group-members.

Other assets contains deferred tax assets at the amount of € 2.6 million (previous

year: € 4.8 million) as well as receivable reimbursements of sugar storage levies,

receivables connected with non-current assets available-for-sale, receivables result-

ing from short- and medium-term loans, receivables from public institutions and

sundry receivables.

(4) Financial instruments28 February 2002 2001

€ 1,000s € 1,000s

Other securities and shares 13,644 10,864

Total 13,644 10,864

The entry for Other securities consists mainly of fixed-interest securities that serve

as financial investments.

580102


(5) EquitySubscribed capital

Subscribed capital was made up as follows:

€ Units

Ordinary shares(no-par shares) 69,235,700 9,527,040

Preference shares(non-voting no-par shares) 10,900,925 1,500,000

Total 80,136,625 11,027,040

(6) Provisions for retirement benefitsand severance/redundancy payments

The provisions for retirement benefits and for severance/redundancy payments were

measured using the internationally accepted projected unit credit method taking into

account future developments on an actuarial basis. In both cases, defined benefit

plans are in place.

The following assumptions were made as to foreseeable increases in wages, salaries

and retirement benefits within the scope of Austrian Group-members:

28 February 2002 2001in per cent in per cent

Wages/salaries trend 2.5 2.5

Interest rate 6.0 6.0

Abroad, we modified our assumptions to suit the circumstances in each case.

590102


Provisions for retirement benefits developed as follows:

28 February 2002 2001€ 1,000s € 1,000s

Transition from present value to provision

DBO on 28 February 36,284 37,648

Disregarded actuarial loss (accumulated) 1,729 1,949

Balance-sheet provision on 28 February 38,013 39,597

Development of the provisionfor retirement benefits

Balance-sheet provision on 1 March 39,597 39,947

Service cost 143 200

Interest cost 2,162 2,322

Lump sum payoffs (187) 0

Benefits paid (3,702) (2,872)


Development of actuarial gains/(losses)

Disregarded actuarial loss (accumulated)to 1 March (1,949) 0

Corridor 3,765 3,995

Excess 0 0

Distribution period (years) 5 5


Actuarial gain/(loss) during year 220 (1,949)

Disregarded actuarial loss (accumulated)to 28 February (1,729) (1,949)

600102


Provisions for severance/redundancy payments developed as follows:

28 February 2002 2001€ 1,000s € 1,000s

Transition from present value to provision

DBO on 28 February 15,566 15,812

Disregarded actuarial loss (accumulated) 1,799 1,288


Development of the provisionfor severance/redundancy payments

Balance-sheet provision on 1 March 17,288 17,100

Exchange differences 6 0

Service cost 862 797

Effect of changes in the Consolidated Group 28 0

Interest cost 967 1,024

Severance/redundancy payments (1,786) (1,633)


Development of actuarial gains/(losses)


Corridor 1,581 1,704

Excess 0 0

Distribution period (years) 5 5


Actuarial gain/(loss) during year (483) (1,288)

Effect of changes in the Consolidated Group (28) 0

Disregarded actuarial loss (accumulated)to 28 February (1,799) (1,288)

610102


There were no expenses on or income from changes in benefit promises and bene-

fit payments or as a result of changes in our assumptions.

The projected unit credit value shows staff-members’ benefit rights measured as

the circumstances were on the balance-sheet date. It includes actuarial gains and

losses resulting from differences between expected and individually occurring

risks. The provision for direct benefit obligations did not take into account actuar-

ial gains and losses within the corridor allowed by IAS 19 (± 10 per cent of project-

ed unit credit value), which were disregarded.

The foreign Group-members in particular had similar obligations. They were

measured applying actuarial principles and taking future cost trends into account.

(7) Tax provisions and other provisions

Tax provisions included sums for the year under review and for the period not yet

closed by the external tax inspectors.

Effect of Effect ofchanges in changes in

foreign the Con-1 March exchange solidated Released Used Added 28 February

2001 rates Group 2002€ 1,000s € 1,000s € 1,000s € 1,000s € 1,000s € 1,000s € 1,000s

Tax provisions 6,349 105 0 (988) (7,185) 22,584 20,865

Other provisions

Provisions for obligations arisingfrom the EU sugar-market regime 16,880 0 0 (926) (15,465) 24,145 24,634

Provisions for the costs ofmeeting recultivation obligations,clearing landfills andremoving waste residues 11,420 79 0 (793) (390) 4,552 14,868

Sundry other provisions 16,572 279 12 (2,335) (5,162) 12,886 22,252

Total other provisions 44,872 358 12 (4,054) (21,017) 41,583 61,754

Total tax provisionsand other provisions 51,221 463 12 (5,042) (28,202) 64,167 82,619of which long-term provisions [10,695] [17,729]

of which short-term provisions [40,526] [64,890]

620102


(8) Provisions for deferred taxesTax deferrals pertained to the following items on the Balance Sheet:

28 February 2002 2001€ 1,000s € 1,000s

Deferred tax assets

Staff provisions 23 15

Inventories and receivables 403 439

Other provisions 5,634 3,661

Loss carryforwards 1,523 5,428

Total deferred tax assets 7,583 9,543

Reconciliation of deferred tax assetsand deferred tax liabilities with respectto the same tax authority (4,955) (4,731)

Net deferred tax assets 2,628 4,812

28 February 2002 2001€ 1,000s € 1,000s

Deferred tax liabilities

Non-current assets 7,942 14,859

Inventories and receivables 15,211 16,164

Extraordinary fiscal items inindividual financial statements 11,175 12,090

Other provisions 250 325

Total deferred tax liabilities 34,578 43,438

Reconciliation of deferred tax assetsand deferred tax liabilities with respectto the same tax authority (4,955) (4,731)

Net deferred tax liabilities 29,623 38,707

630102


More detailed information about accounts payables to banks is contained in chap-

ter 10 (Financial instruments and derivative financial instruments).

On the balance-sheet date (28 February 2002), the following collateral was in place:

Collateralized byReal-estate liens Other liens

€ 1,000s € 1,000s

Accounts payable to banks 31,780 16,933

(9) Payables of which with a maturity of of which with a maturity of28 Feb. up to >1 to >5 years 28 Feb. up to >1 to >5 years

2002 1 year 5 years 2001 1 year 5 years€ 1,000s € 1,000s € 1,000s € 1,000s € 1,000s € 1,000s € 1,000s € 1,000s

Accounts payableto banks 135,818 80,321 54,143 1,354 161,658 84,951 74,592 2,115

Prepaymentsfor orders 293 293 0 0 15 15 0 0

Accounts payablefor goods and services 106,696 106,542 61 93 110,792 110,585 109 98

Accounts payableto subsidiaries 3,692 3,692 0 0 6,778 6,441 337 0

Accounts payableto companies in whichthe Group holdssubstantial andpermanent interests 0 0 0 0 3 3 0 0

Other payables 26,013 20,768 3,561 1,684 35,680 28,110 5,583 1,987of which tax [2,381] [1,898] [386] [97] [4,110] [2,502] [1,458] [150]

of which arisingfrom social security ]3,015] [3,015] [0] [0] [2,293] [1,884] [409] [0]

Total 272,512 211,616 57,765 3,131 314,926 230,105 80,621 4,200

640102


Other payables comprised mainly tax liabilities, payables to benefit schemes and

payables on payroll accounts.

(10) Financial instruments and derivative financial instrumentsTo steer its seasonally fluctuating liquidity, the AGRANA Group employs conven-

tional investments (call-money, fixed and securities deposits), borrows funds through

call-money and fixed borrowings and transacts fixed-rate loan transactions in the

course of its day-to-day financial management operations.

Financial instruments are typically subject to interest-rate, currency and credit risks.

Interest-rate risk

In the case of a financial instrument for which a fixed interest rate has been agreed

for its entire term, the risk is that its price may change as the market interest rate

fluctuates (interest-rate related price risk). The interest rate on a variable-rate finan-

cial instrument is adjusted on an almost concurrent basis, and to that extent corre-

sponds roughly to the market rate. The risk in that case is therefore that the short-

term interest rate could fluctuate, changing interest service costs (interest-rate related

cash-flow risk).

Currency risk

Currency risk is defined as the risk that the value of an asset or liability will fluc-

tuate due to changes in foreign exchange rates.

Credit risk

We minimize the credit risks associated with non-current assets and securities and

with receivables arising from derivative hedges by only transacting business with

counterparties of the highest financial reliability.

650102


The most important primary non-current assets and financial instruments held on

28 February 2002 broke down as follows, by balance-sheet item:

Non-current assets; securities Contracted Market Book valuecurrency value on the

domesticbalance sheet

€ 1,000s € 1,000s

Stocks, Ges.m.b.H. (Ltd. Co.) shares, € 1,354 987shares in cooperatives Kc 192 144

Debt instruments issued by corporates € 1,206 984

Federal/provincial debt instruments € 4,009 4,009

Stock funds € 3,473 2,149

Bond funds € 6,171 6,172

Other securities € 5,157 5,077

Total 21,562 19,522

Current assets; securities Contracted Market Book valuecurrency value on the

domesticbalance sheet

€ 1,000s € 1,000s

Stock funds € 10,583 10,568

Other securities € 2,749 2,592Ft 312 312

Total 13,644 13,472

Current assets; Contracted Book value on thecash, cheques, bank balancies currency domestic balance sheet

(= market value)

€ 1,000s € 1,000s

Time deposits and € 76,076other banks deposits Ft 2,310

Sk 585Kc 2,845

ROL 1,655

Total 83,471

660102


Differences between market values and book values on domestic balance sheets

were carried to the revaluation reserve.

Accounts payable to banks Contracted Interest rate Book valuecurrency (nominal)

in per cent € 1,000s

Maturity of up to 1 year € 4.02 7,107Ft 10.43 34,404Kc 5.24 9,377Sk 8.48 12,368

US$ 2.55 17,065

Maturity of more than 1 to 5 years € 4.18 46,164Ft 11.32 30Kc 5.93 7,815Sk 13.55 134

Maturity of more than 5 years € 2.00 1,354

Total 135,818

Payables were recognized at amounts payable. In the case of payables denominated

in foreign currencies, nominal values were translated into the reporting currency

applying the foreign exchange rates ruling on the balance-sheet date. Conse-

quently, market values could be higher or lower, depending on the development

of exchange rates.

Derivative financial instruments and risk management

In order to hedge part of the risks arising from its operating activities (due to move-

ments in interest rates, foreign exchange rates and raw-material prices), the AGRANA

Group makes limited use of derivative financial instruments. It only employs instru-

ments that are commonly used and have sufficient liquidity in the marketplace

(e.g. rate swaps, rate options, caps, forward exchange contracts, currency options).

The use of those instruments is regulated by Group guidelines within the scope of

our risk management system. They rule out the speculative use of derivative finan-

cial instruments, set ceilings that are appropriate to the underlying transactions,

670102


define authorization procedures, minimize credit risks, and regulate internal report-

ing and functional firewalls. Compliance with those guidelines and the proper

management and valuation of transactions are regularly monitored by a neutral

internal authority.

The nominal and market values of the derivative financial instruments held by the

AGRANA Group and the associated credit risks broke down as follows:

Nominal value Market value28 February 2002 2001 2002 2001

€ 1,000s € 1,000s € 1,000s € 1,000s

Caps 581 1,163 0 2

Forward exchange contracts 9,069 0 (204) 0

Commodity futures 1,092 0 (46) 0

Total 10,742 1,163 (250) 2

All interest-rate derivatives, which had a total nominal value of € 581 thousand,

had maturities of one year or less.

Nominal values

The nominal value of a derivative financial instrument is defined as the reference

value underlying the hedge. The object of hedging and the source of risk are not

absolute nominal value; they are price movements versus the reference value.

Market values

Market values were measured to quoted market prices on the balance-sheet date

without offsetting any countermovements in the values of hedged items.

Market value is the amount that the AGRANA Group would have to pay or would

receive in the event of premature termination of the hedge.

680102


(11) Contingent liabilities and other financial obligations28 February 2002 2001

€ 1,000s € 1,000s

Contingent liabilities

Drafts 137 137

Sureties 3,214 1,181

Guarantees, cooperative liabilities 2,856 3,862

Present value of finance lease instalmentsdue within 4 years 89 131

Letters of comfort 4,584 4,616

Orders for investmentsin tangible non-current assets 1,645 2,024

Total 12,525 11,951

NOTES TO THE INCOME STATEMENT

(12) Sales revenues2001/02 2000/01€ 1,000s € 1,000s

By segment

Self-produced items 725,132 668,872of which from sugar and starch [703,043] [648,595]

of which other sales revenues [22,089] [20,277]

Service revenues 3,350 3,620

Merchandise revenues 114,314 87,728of which from sugar and starch [8,857] [7,109]

of which other sales revenues [105,457] [80,619]

Total 842,796 760,220of which Austrian [396,958] [378,067]

of which foreign [445,838] [382,153]

690102


Breakdown of foreign sales revenues along geographical lines:

2001/02 2000/01€ 1,000s € 1,000s

Region

Germany and other EU 133,945 119,294

Central and Eastern Europe, other foreign 311,893 262,859

Total foreign sales revenues 445,838 382,153

Because of the uniform nature of the Group’s activities, segment reporting was not

necessary.

(13) Changes in inventories and other capitalized self-produced items2001/02 2000/01€ 1,000s € 1,000s

Changes in stocks of finishedand unfinished products 7,458 52

Other capitalized self-produced items 753 562

Total 8,211 614

(14) Other operating income2001/02 2000/01€ 1,000s € 1,000s

Income from disposals of non-current assetsother than financial investments 1,936 3,267

Income from the release of provisions 4,054 2,268

Other income 16,140 34,034

Total 22,130 39,569

The entry for Other income comprised mainly income from passed-on costs, rentals

and licence fees.

700102


(15) Expenditure on materials2001/02 2000/01€ 1,000s € 1,000s

Expenditure on raw materials,process materials and supplies 512,076 432,893

Expenditure on purchased services 16,561 17,952

Total 528,637 450,845

(16) Expenditure on staff2001/02 2000/01€ 1,000s € 1,000s

Wages and salaries 71,747 67,283

Social security levies andexpenditure on retirement benefitsand severance/redundancy payments 21,904 23,637of which on retirement benefits [(14)] [1,081]

of which on severance/redundancy payments [1,211] [2,690]

Total 93,651 90,920

The interest component of allocations to so-called social capital is contained in our

financial result at the amount of € 3.4 million (previous year: € 3.6) million.

Remunerations paid by AGRANA Beteiligungs-AG to members of its Board of Manage-

ment totalled € 714 thousand (previous year: € 676 thousand). Remunerations

paid to members of the Supervisory Board totalled € 134 thousand (previous year:

€ 94 thousand). Provisions totalling € 94 thousand (previous year: € 103 thousand)

were allocated for retirement benefit promises to the Board of Management.

Average number of staff employed during the financial year

2001/02 2000/01

By employee category

Blue-collar (Arbeiter) 3,299 3,580

White-collar (Angestellte) 1,108 1,120

Apprentices 56 53

Total 4,463 4,753

710102


2001/02 2000/01

By region

Austria 1,341 1,316

Central and Eastern Europe 3,122 3,437

Total 4,463 4,753

The decrease in the average number of staff within the AGRANA Group was mainly

due to restructuring and rationalizations.

(17) Depreciation and amortizationDepreciation/amortization of intangible non-current assets, tangible non-current

assets and financial investments was recorded under Depreciation/amortization of

intangible non-current assets (without goodwill) and tangible non-current assets, Amorti-

zation of goodwill, Net income from restructuring and Other financial profit/(loss) and

broke down as follows:

2001/02 2000/01€ 1,000s € 1,000s

Scheduled depreciation/amortization

Intangible non-current assets 406 394

Goodwill 1,638 1,637

Tangible non-current assets 41,816 38,895

Total 43,860 40,926

Unscheduled depreciation/amortization

Goodwill 955 3,850


Financial investments 2,712 1,948

Total 6,803 8,324

Total depreciation/amortization

Intangible non-current assets 406 394

Goodwill 2,593 5,487


Financial investments 2,712 1,948

Total as per Non-Current Assets Summary 50,663 49,250

720102


(18) Other expenses2001/02 2000/01€ 1,000s € 1,000s

Production contributionand additional levy 11,628 16,375

Storage levy 5,449 7,185

Losses arising from disposals/retirementsof non-current assets 1,116 2,314

Other taxes 2,396 3,636

Other 112,023 120,575

Total 132,612 150,085

Other expenses includes operational and administrative costs and sales and adver-

tising outlay.

(19) Net income from restructuringThis item includes write-offs of machines and mechanical plant no longer required

after structural pruning in Romania.

(20) Net interest income2001/02 2000/01€ 1,000s € 1,000s

Income from other securities andloans classified as financial investments 1,828 1,830of which from subsidiaries [17] [26]

Other interest and similar income 4,910 5,108of which from subsidiaries [47] [50]

Interest expense and similar charges (13,515) (16,650)of which from subsidiaries [(325)] [(3,500)]

Total (6,777) (9,712)

730102


(21) Net income from substantial and permanent interests2001/02 2000/01€ 1,000s € 1,000s

Income from substantialand permanent interests 2,822 1,704of which from subsidiaries [2,146] [1,214]

of which from associates [95] [110]

of which from other substantial and permanent interests [216] [193]

of which from the release of negative goodwill [365] [187]

(22) Other financial profit/(loss)Other financial profit/(loss) includes write-downs to financial investments

(€ 2.7 million), exchange gains/(losses) and other financial income/(expenses).

(23) Income taxActual tax expense/(income) and tax deferrals pertained to Austrian and foreign in-

come taxes and broke down as follows:

2001/02 2000/01€ 1,000s € 1,000s

Actual tax expense 27,211 8,609of which Austrian [23,672] [6,940]

of which foreign [3,539] [1,669]

Deferred taxes (6,703) 4,981of which Austrian [(8,610)] [3,342]

of which foreign [1,907] [1,639]

Total 20,508 13,590

In compliance with IAS 12, the revaluation reserve accounted for € 125 thousand

of tax deferrals.

740102

Transition from profit before income tax to income tax expense:

2001/02 2000/01€ 1,000s € 1,000s

Profit before income tax 64,102 51,219

Theoretical tax rate 34% 34%

Theoretical tax expense 21,795 17,415

Change compared withtheoretical tax expense because of

divergent applicable tax rate (4,248) (4,108)

reduction in tax burden due to restructuring (3,285)

deduction of tax-exempt income (576) (1,551)

increase in tax burden due tonon-tax-deductible expensesand fiscal charges 4,228 3,427

Other (691) 1,692

Income tax expense 20,508 13,590

Tax rate 32% 27%

The figure for theoretical tax expense results from applying Austria’s corporation

tax rate of 34 per cent.

Tax deferrals were based on differences between valuations in the Consolidated

Financial Statements and the individual tax bases for taxes as imposed in individual

countries and on allowances for tax loss carryforwards.

In the interests of prudence, loss carryforwards were only included in tax deferrals

to the extent that a taxable profit of a kind that could be expected to suffice for the

utilization of the deferred tax asset was foreseeable within the coming three years.

No deferred tax liability was recorded for non-distributed profits of foreign Group-

members on the grounds that such profits will remain permanently in the country

concerned and will be used locally for investment purposes.

750102


760102


CASH-FLOW STATEMENT

The Cash-Flow Statement drawn up in accordance with the corresponding provi-

sions of IAS 7 elucidates the change in the AGRANA Group’s holdings of cash and

cash-equivalents as derived from day-to-day operating, investing and financing

activities. Adjustments for changes in foreign exchange rates and in the Consoli-

dated Group had (with the exception of those affecting cash and cash-equivalents)

already been eliminated within the corresponding balance-sheet items.

The composition of holdings of cash and cash-equivalents is shown in the Cash-

Flow Statement on page 48.

OTHER DISCLOSURES

Earnings per shareOrdinary shares (no-par shares) 9,527,040 units

Preference shares(non-voting no-par shares) 1,500,000 units

Total 11,027,040 units

Earnings per share based on taxed consolidated profit for the year of € 44,325

thousand came to € 4.02 (previous year: € 3.41 based on consolidated profit for the

year of € 37,574 thousand).

Vienna

23 April 2002

The Board of Management

Johann Marihart

Walter Grausam

Klaus Korn

Group interests on 28 February 2002(comprising interests of at least 20 per cent of share capital)

Stake in share capitalName and location of company Direct Indirect via subsidiary

in per cent in per cent

I. Subsidiaries

1. Interests in fully-consolidated Group-members

AGRANA Internationale Verwaltungs-und Asset-Management AG, Vienna 100.00 —

AGRANA Internationale Verwaltungs-und Asset-Management AG & Co KG, Vienna 100.00 —

AGRANA Marketing- und VertriebsserviceGesellschaft m.b.H., Vienna 100.00 —

AGRANA Zucker und Stärke AG, Vienna 98.91 1.09 AGRANA Marketing- undVertriebsservice Ges.m.b.H.

Agrofrucht, Handel mit landwirtschaftlichenProdukten Gesellschaft m.b.H., Vienna — 100.00 AGRANA Zucker und Stärke AG

Brüder Hernfeld Gesellschaft m.b.H., Vienna — 100.00 Agrofrucht Ges.m.b.H.

INSTANTINA Nahrungsmittel Entwicklungs-und Produktions Gesellschaft m.b.H., Vienna 66.67 —

AGRANA Magyarorzág Értékesitési Kft., — 1.00 AGRANA Zucker und Stärke AG

Budapest, Hungary — 99.00 Magyar Cukogyártó és Forgalmazó Rt.

Elsö Hazai Cukorgyártó és Forgalmazó Kft.,Budapest, Hungary — 98.99 AGRANA Zucker und Stärke AG

Instantina Hungária Kft., Petöhaza, Hungary — 100.00 INSTANTINA Nahrungsmittel Ges.m.b.H.

Magyar Cukogyártó és Forgalmazó Rt., — 57.64 AGRANA Zucker und Stärke AG

Budapest, Hungary — 27.50 Elsö Hazai Cukorgyártóés Forgalmazó Kft.

Moravskoslezské Cukrovary a.s.,Hrusovany nad Jevisovkou, Czech Republic — 97.54 AGRANA Zucker und Stärke AG

Slovenské Cukrovary a.s.,Rimavská Sobota, Slovakia — 100.00 AGRANA Zucker und Stärke AG

RUMA Handelsges.m.b.H., Hagenbrunn, Austria — 100.00 Brüder Hernfeld Ges.m.b.H.

S.C. A.G.F.D. Tandarei S.A., Tandarei, Romania — 99.79 AGRANA Zucker und Stärke AG

S.C. BETA-Tandarei S.A., Tandarei, Romania — 86.11 AGRANA Zucker und Stärke AG

770102




S.C. Danubiana Roman S.A., Roman, Romania — 90.43 AGRANA Zucker und Stärke AG

S.C. Zaharul Buzau S.A., Buzau, Romania — 81.70 AGRANA Zucker und Stärke AG

S.C. Romecanica s.r.l., Roman, Romania — 100.00 S.C. Danubiana Roman S.A.

S.C. Romana Prod s.r.l., Roman, Romania — 99.58 S.C. Danubiana Roman S.A.

— 0.42 S.C. AGRANA Romania Holdingand Trading Company s.r.l.

S.C. AGRANA Romania Holding and — 90.00 AGRANA Zucker und Stärke AG

Trading Company s.r.l., Bucharest, Romania — 10.00 AGRANA Internationale Verwaltungs-und Asset-Management AG & Co KG

2. Companies accountedfor using the equity method

Österreichische RübensamenzuchtGesellschaft m.b.H., Vienna — 86.00 AGRANA Zucker und Stärke AG

3. Excluded Group-members

Leipnik-Lundenburger Unterstützungs-einrichtung Gesellschaft m.b.H., Vienna — 100.00 AGRANA Zucker und Stärke AG

Sugana Altersvorsorge-EinrichtungGesellschaft m.b.H., Vienna — 100.00 AGRANA Zucker und Stärke AG

Zuckerforschung Tulln Ges.m.b.H., Vienna 100.00 —

Dr. Hauser Gesellschaft m.b.H.,Garmisch-Partenkirchen, Germany — 51.00 AGRANA Zucker und Stärke AG

Hottlet Sugar Trading N.V., Berchem, Belgium 25.10 —

Ganz-Danubuis Akcio Kft., Budapest, Hungary — 0.30 Elsö Hazai Cukorgyártóés Forgalmazó Kft.

— 99.70 Magyar Cukogyártó és Forgalmazó Rt.

Schoko-Schwind Kft., Kecskemet, Hungary — 100.00 Magyar Cukogyártó és Forgalmazó Rt.

AGRANA Skrob s.r.o., Hrusovany, Czech Republic — 100.00 AGRANA Zucker und Stärke AG

S.C. Cristal S.A., Urziceni, Romania — 52.00 AGRANA Zucker und Stärke AG

780102


790102




II. Associates

1. Companies for which we waived useof the equity method

ÖSAT Beteiligungsgesellschaft m.b.H.,Bruck/Leitha, Austria — 34.58 AGRANA Zucker und Stärke AG

ZSG NL (Netherlands) B.V., Amsterdam,Netherlands 21.99 —

2. Companies consolidatedon a proportionate basis

HUNGRANA Keményitö- és Isocukorgyártóés Forgalmazó Kft., Szabadegyhaza, Hungary — 50.00 AGRANA Zucker und Stärke AG

Hungranatrans Kft., Szabadegyhaza, Hungary — 100.00 HUNGRANA Keményitö- ésIsocukorgyártó és Forgalmazó Kft.

3. “Atypical” silent partnership

„CREMBS“ Hotelbetriebsgesellschaft m.b.H.,Krems — —

Auditors’ Report and Auditors’ Certificate(Translation)

800102


We audited the attached Consolidated Financial Statements of AGRANA Beteiligungs-

Aktiengesellschaft, Vienna, for the period ended 28 February 2002, comprising the

Balance Sheet, the associated Income Statement, the Cash-Flow Statement, the

Statement of Changes in Equity and the Notes to the Consolidated Financial State-

ments. These Consolidated Financial Statements were the responsibility of the enter-

prise’s management. Our responsibility was to give an auditors’ opinion of the

Consolidated Financial Statements based on our audit.

We performed our audit observing the principles governing the proper execution

of audits as valid in Austria and the International Standards on Auditing (ISA). Those

standards required the audit to be planned and executed in such a way that a suffi-

ciently sound judgement could be reached as to whether the Consolidated Finan-

cial Statements were free from material misstatements. The audit included a random-

sample supported examination of the evidence supporting the amounts and other

disclosures in the Consolidated Financial Statements. It also included an evaluation

of the accounting principles applied and material estimates undertaken by the enter-

prise’s management and an appraisal of the overall testimony of the Consolidated

Financial Statements. We believe that our audit constituted a sufficiently reliable

basis for our audit opinion.

It is our conclusion that the Consolidated Financial Statements do in all material

respects provide as true and fair a view as possible of the assets and financial con-

dition of AGRANA Beteiligungs-AG, Vienna, on 28 February 2002 and of its profit posi-

tion and cash flows during the financial year ended in compliance with the Inter-

national Accounting Standards (IAS) published by the International Accounting Standards

Board (IASB).

Vienna

26 April 2002

MULTICONT

KPMG Alpen-Treuhand GmbH Revisions- und Treuhand Ges.m.b.H.Wirtschaftsprüfungs- und Wirtschaftsprüfungs- undSteuerberatungsgesellschaft Steuerberatungsgesellschaft

Walter Knirsch Wilhelm Kovsca Hans Chaloupka Robert Breitner

Certified Accountants and Tax Consultants Certified Accountant Tax Consultantand Tax Consultant

810102

20012002Annual Financial

Statementsof AGRANA Beteiligungs-AG applyingRLG (Austrian financial reporting act)

820102

Annual Financial Statements for 2001/02 AGRANA Beteiligungs-Aktiengesellschaft

Balance Sheet dated 28 February 2002

28 February End ofA S S E T S 2002 previous year

€ € 1,000sA. Non-current assets

I. Intangible non-current assets 6,884 13II. Tangible non-current assets 775,228 2,888III. Financial investments 271,718,511 270,702

272,500,623 273,603B. Current assets

I. Receivables and other current assets 57,328,661 70,568II. Securities 13,146,117 10,583III. Cash, bank balances 21,809,224 24,866

92,284,002 106,017Total assets 364,784,625 379,620

E Q U I T Y A N D L I A B I L I T I E S

A. Equity (Eigenkapital )I. Share capital 80,136,625 80,137II. Capital reserves 213,463,220 213,463III. Retained earnings reserves 11,935,964 11,065IV. Balance-sheet profit 14,347,099 12,032

of which profit carryforward: € 12,361(previous year: € 1 thousand)

319,882,908 316,697B. Untaxed reserves 21,044 64

C. Provisions 3,633,218 3,227

D. Payables 41,247,455 59,632

Total equity and liabilities 364,784,625 379,620

Contingent liabilities and other financial obligations 20,845,766 20,846

830102


Income Statementfor the 2001/02 financial yearfrom 1 March 2001 through 28 February 2002

2001/02 Previous year€ € 1,000s

1. Sales revenues 279,959 2852. Other operating income 9,993,427 10,0363. Expenditure on staff (6,189,981) (5,392)4. Depreciation/amortization of intangible

and tangible non-current assets (341,702) (313)5. Other operating expenses (5,166,795) (5,248)6. Operating result (subtotal of items 1 – 5) (1,425,092) (632)

7. Income from substantial and permanent interests 15,888,656 13,061of which from subsidiaries€ 15,387,599 (previous year: € 12,743 thousand)

8. Income from other securities classifiedas financial investments 257,270 546

9. Other interest and similar income 3,868,714 3,979of which from subsidiaries€ 1,701,664 (previous year: € 2,633 thousand)

10. Expenditure on financial investments andsecurities classified as non-current assets (11,407) 0

11. Interest expense and similar charges (2,446,205) (2,422)12. Financial result (subtotal of items 7 – 11) 17,557,028 15,164

13. Profit from ordinary activities 16,131,936 14,532

14. Income tax expense (969,506) (494)15. Net profit for the year 15,162,430 14,038

16. Released from untaxed reserves 43,106 617. Allocated to untaxed reserves 0 (7)18. Allocated to retained earnings reserves (870,798) (2,006)19. Profit carryforward from previous year 12,361 1

20. Balance-sheet profit 14,347,099 12,032

840102

We audited the Annual Financial Statements for the year ended 28 February 2002

as drawn up by the Board of Management of AGRANA Beteiligungs-AG in accordance

with the provisions under commercial law applying in Austria, thereby observing

the principles of our profession in Austria regarding the proper execution of audits.

Having completed our audit, we granted the full German Annual Financial State-

ments of AGRANA Beteiligungs-AG, Vienna, for the year ended 28 February 2002 the

following unqualified Auditors’ Certificate in accordance with § 274 Abs. 1 HGB

(commercial code) subject to the passing of the appropriate resolutions under com-

pany law regarding profit shares for the concurrent reporting year (2001/02) as

receivable from AGRANA Zucker und Stärke AG and AGRANA Marketing- und Vertriebs-

service Ges.m.b.H.:

“According to our mandatory examination thereof, the accounting records and the

Annual Financial Statements comply with the statutory requirements. The Annual

Financial Statements conform to the principles of proper accounting and provide

as true and fair a view as possible of the company’s assets, financial condition and

profit position. Management’s Report is in conformity with the Annual Financial

Statements.”

Vienna

24 April 2002

MULTICONT

KPMG Alpen-Treuhand GmbH Revisions- und Treuhand Ges.m.b.H.Wirtschaftsprüfungs- und Wirtschaftsprüfungs- undSteuerberatungsgesellschaft Steuerberatungsgesellschaft

Walter Knirsch Wilhelm Kovsca Hans Chaloupka Robert Breitner

Certified Accountants and Tax Consultants Certified Accountant Tax Consultantand Tax Consultant


Auditors’ Certificate (Translation)

850102


Proposal regarding profit appropriation

The financial year from 1 March 2001 through

28 February 2002 closed with balance-sheet profit of € 14,347,099

The Board of Management recommends to

the General Meeting of Shareholders that

this balance-sheet profit be appropriated as follows:

a) the distribution of a dividend of € 0.58

per preference share (non-voting no-par share)

on 1,500,000 dividend-bearing preference shares,

that is € 870,000

and the payment of a bonus of € 0.72

per preference share, that is € 1,080,000

and therefore in total € 1.30 per preference share

and thus altogether € 1,950,000;

b) the distribution of a dividend of € 0.58

per ordinary share (no-par share)

on 9,527,040 dividend-bearing ordinary shares,

that is € 5,525,683

and the payment of a bonus of € 0.72

per ordinary share, that is € 6,859,469

and therefore in total € 1.30 per ordinary share

and thus altogether € 12,385,152.

Total outpayment € 14,335,152

To be carried forward to a new account € 11,947

€ 14,347,099

860102

During the 2001/02 financial year, the Supervisory Board kept abreast of the com-

pany’s business and financial position, the course and development of business, the

company’s financial condition and investment plans and unusual transactions as

well as corporate policy in numerous discussions and meetings and with the help

of regular reports from the Board of Management and extensive written material,

and it discussed those matters with the Board of Management. Those in-depth dis-

cussions dealt in particular with corporate strategies, future opportunities for growth

and the company’s acquisitions and the financing thereof.

The Annual Financial Statements, the Consolidated Financial Statements and the

Board of Management’s Report on the 2001/02 financial year as well as the account-

ing records were examined by the auditors appointed by the General Meeting of

Shareholders, namely KPMG Alpen-Treuhand GmbH, Wirtschaftsprüfungs- und Steuer-

beratungsgesellschaft, Vienna, and MULTICONT Revisions- und Treuhand Ges.m.b.H.,

Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna, and were granted an

unqualified Auditors’ Certificate. The Supervisory Board has taken note of and

endorses the results of that audit.

Supervisory Board’s Report


870102

The Supervisory Board committee set up to examine the Annual Financial State-

ments and make preparations for their final approval examined the Annual Financial

Statements and reported to the Supervisory Report in the presence of the Auditors.

The Supervisory Board examined the Annual Financial Statements, the Board of

Management’s proposal regarding profit appropriation and the Board of Manage-

ment’s Report on the 2001/02 financial year.

None of the final results of those examinations gave cause for objections.

The Supervisory Board has approved the Annual Financial Statements prepared by

the Board of Management for the 2001/02 financial year, which are thus final for

the purposes of § 125 Abs. 3 AktG (corporation act). The Supervisory Board takes

note of and approves the Board of Management’s Report on the 2001/02 financial

year and endorses the proposal regarding profit appropriation.

The Supervisory Board would like to express its appreciation and thanks to the

Board of Management and to all the staff of the company and the AGRANA Group

for their work during the financial year.

The Chairman of the Supervisory Board

Christian KONRAD

Vienna

June 2002


880102


AGRANA Beteiligungs-AktiengesellschaftF.-W.-Raiffeisen-Platz 1, A-1020 Vienna

Phone: +43-1-21 137-0; Fax: +43-1-21 137-2998

e-mail: [email protected]

Internet: www.agrana.com

Group Communications/Investor Relations:

Brigitte Gampe

Phone: +43-1-21 137-2930; Fax: +43-1-21 137-2045


Subsidiaries

AGRANA Zucker und StärkeAktiengesellschaftHeadquarters:

F.-W.-Raiffeisen-Platz 1, A-1020 Vienna

Phone: +43-1-21 137-0; Fax: +43-1-21 137-2998


SUGAR DivisionAdministration:

Reitherstrasse 21 – 23, A-3430 Tulln

Phone: +43-2272-602-0; Fax: +43-2272-602-225


FactoriesBahnstrasse 25, A-2273 Hohenau

Phone: +43-2535-2311-0; Fax: +43-2535-2311-201

Bahnstrasse 104, A-2285 Leopoldsdorf

Phone: +43-2216-2341-0; Fax: +43-2216-2341-299

Reitherstrasse 21 – 23, A-3430 Tulln

Phone: +43-2272-602-0; Fax: +43-2272-602-225

STARCH DivisionAdministration:

Conrathstrasse 7, A-3953 Gmünd

Phone: +43-2852-503-0; Fax: +43-2852-503-420


FactoriesConrathstrasse 7, A-3953 Gmünd

Phone: +43-2852-503-0; Fax: +43-2852-503-420

Raiffeisenweg 2 – 6, A-4082 Aschach

Phone: +43-7273-6441-0; Fax: +43-7273-6441-43

AGRANA Marketing- undVertriebsservice Gesellschaft m.b.H.F.-W.-Raiffeisen-Platz 1, A-1020 Vienna

Phone: +43-1-21 177-0; Fax: +43-1-21 177-2009


AGRANA InternationaleVerwaltungs- und Asset-ManagementAktiengesellschaftF.-W.-Raiffeisen-Platz 1, A-1020 Vienna

Phone: +43-1-21 137-0; Fax: +43-1-21 137-2766


Important addresses

Acknowledgements:Published by:

AGRANA Beteiligungs-AG

F.-W.-Raiffeisen-Platz 1, A-1020 Vienna

Group Communications/Investor Relations: Brigitte Gampe

Phone: +43-1-21 137-2930; Fax: +43-1-21 137-2045


Design and production: Scholdan & Company

Layout and typesetting: Studio Alessandri, Andreas Marchesani

Photos: Claudio Alessandri

Printing: Druckerei Ketterl, Vienna/Mauerbach

English translation: Adrian Weisweiller M.A. (Oxon)

annual report 2001/02 - · pdf filedividend per share € 1.30 1.09 1 ... we enlarge the...

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