Südzucker AG — Call Transcript 2025

Ladies and gentlemen, good morning from Mannheim. We welcome all of you to our conference call. The underlying presentation for this call has already been published this morning on our website. Today, we released the statement for the first half of the financial year 2025/2026. We are going to present you the highlights of the period. We maintain our full-year group earnings guidance for the business year, which we adjusted on August 21st. Following the presentation, we are going to answer your questions. As already mentioned, a recording of this call will be available on our homepage shortly after the call. Now, let me hand over to our CFO, Dr. Stephan Meeder. Thank you, Mathilde and Andreas, for the introductions. Ladies and gentlemen, also a warm welcome from my side, and thank you very much to all of you for your interest showing in Südzucker. As mentioned, I would like to give you a brief overview about the business performance in the first six months of fiscal 2025/26, and I would like to give you some more details about the confirmed earnings guidance for fiscal 2025/26. So let me start with the highlights of the past six months of the fiscal. You will find this on page five. But before going into the details upfront, let me say a more general remark on where we stand as of today. So you can see in the figures that there is a weak performance in Q2. Yes, it came in as expected, but it's clear it's a weak performance. But on the other side, we confirm our full-year financial guidance for the operating profit as of today, which stands at EUR 100-200 million. So when looking into the remainder of the year, we believe that from Q3 onwards, this should be the turning point to the positive. But the figures that I will continue to explain to you in the following for Q2 and H1 show a weak performance. So going into the details, you can see that Q2 performance was not able to match prior year's numbers for Q2, and the same is true for H1 compared to H1. And after six months, we have reached the following numbers. You can see group revenues came in at roughly EUR 4.2 billion, which is significantly below prior year's level. Same is true for group EBITDA, which was significantly down by 55% to EUR 189 million. And group operating profit also only reached EUR 42 million versus EUR 269 million in previous year's period. Same is true for cash flow, which decreased to EUR 67 million. And when it comes to net financial debt, so net financial debt as of 31st of August this year came in EUR 285 million below prior year's level and did remain stable compared to the end of fiscal 2024/25, which is end of February 2025. So let me continue with the next pages. We have a look here on H1, so bringing H1 into historic context. You can see that especially for operating group result, this is a strong decline compared to previous year's periods. You can see that the decline is in revenues, EBITDA, and operating result. Particularly affected in H1 are the segments of sugar, Special Products, CropEnergies, starch. But we do see an increase in the Fruit segment, and that is something important to note. We do this in each and every quarter. We know we are active in volatile markets, but what is good about Südzucker Group is that it is a strong and resilient portfolio, and we always have divisions who do also benefit for the group with a strong performance. And overall, this year, this is the Fruit segment, but we also see a good development in the divisions of Beneo and Freiberger. So on August 21st, we changed our group guidance for the fiscal 2025/26. We now expect revenues to range between EUR 8.3 billion and EUR 8.7 billion for the full year, EBITDA between EUR 470 million and EUR 570 million, and operating profit between EUR 100 million and EUR 200 million. So further details for the outlook, I will give on later. What we can see if we move on to what we see on page 10 is there are persistently low sugar prices in the global market in the EU market environment with continuous impact into autumn 2025. And we also do see continuous volatility or volatility going forward, which we cannot exclude due to geopolitical and global economic conditions. You are all fully aware of that. So let's move on to page 9. You can find it's a little bit difficult to read, but it's a little bit also a backup information for you. You can find the detailed results of the segments. And as already mentioned, after six months, group revenues came in below previous levels. We do see revenues decline in the segments of sugar, Special Products, CropEnergies, and starch, but revenues rose slightly in the food segment. When it comes to the EBITDA, as already stated, there's a decrease as well as in operating result. This is largely driven by the Sugar segment, but was also significantly below prior year's level in Special Products, CropEnergies, and Starch segments, and positively to note the food segment showed an increase. Most important, which is for H1 really important to discuss in more detail, is the development in the Sugar segment and to see the developments in the Sugar segment. We also always have to have a close look at what happens on the global sugar market. I start with the global sugar market on page 10 because this has an impact on the European sugar market, and the development of the European sugar market has an effect or is quite demonstrated for the Sugar segment development in Südzucker Group. So let's have a look on the sugar market as a total on the worldwide scale. You will find this, as I said, on page 10. Let's have first a look at what is positively on the world market. You can see that consumption is still growing. So on a worldwide scale, the sugar market is still growing. You see this is the normal blue bars. You can see that consumption is going up. Dark blue is the production. And you can see that we have in 2024/25 a market with a deficit, and deficit markets and commodity markets are beneficial to the prices. That is the situation we started. But in 2025/26 sugar marketing year, and just as a reminder, sugar marketing year always starts 1st of October and goes until end of September. So for sugar marketing years 2025/26 and 2026/27, it is expected that the market is in a surplus. That means production going over consumption. And in a commodity market, this is leading to a bearish sentiment on the prices. This is also, if you have a look on the sugar market prices. We do not have this in this presentation, but you can find this in our investor slide deck on our homepage. They have all the detailed price developments, and you can see that recently there's still a downward trend in market prices. And another factor also contributing to that compared then to you is the weakness of the U.S. dollar, which is also a bearish factor. So going from the global sugar market, coming to the European sugar market. So as a mid-summary, we can state that from the world market, we do not have a support. The contrary is true, so there's a bearish sentiment for sugar on the world market, and this translates also to the situation in Europe, so here also the graph, you can see the dark blue is the productions and the normal blue is the consumption. When it comes to consumption in Europe, you can see that there is. It depends whether you start looking into the figure 2022/2023. If you take this, you can see that it's rather stable consumption in Europe. If we take also into consideration 2021/2022 as a starting point, we can also come to the conclusion that the European market is rather in a slightly downward trend. So going into the details, for the recently started sugar marketing year 2025/26, which started 1st of October 2025, the European Commission and also the analysts from market survey expect a significant decline in cultivation area for Europe, so less acres with sugar beets. So based on this production, including isoglucose, is forecasted to decrease to 15.9 million tons. That's the graph or the bars on the right-hand side in the graph. And as a result, the EU is expected to have a balance in export-import volumes. The sugar price, let's have a look on the sugar prices, but it's not on the graph, but let me explain to you the development for the sugar prices. So the sugar prices, which have been published by the European Commission, fell significantly down from 619 EUR per ton at the start of the 2024/25 sugar marketing year in October 2024 sharply. And since it has continued to fall, reaching EUR 550 per ton at the start of the 2025/2026 fiscal in March 2025 and in July 2025. So this is the latest available publication, EU sugar prices to that EUR 534 per ton. So one aspect that we always have to put into consideration when we discuss sugar prices in Europe is what is happening with Ukraine. As we stated in the last conference calls, one factor which heavily weighed on European sugar prices was the Ukraine imports over the last years and months. So at current state, the EU-Ukraine association agreement foresees that the allowed import or the duty-free allowed imports into the EU amount to 20,000 tons for this year, pro rata temporis. But the ongoing discussion is to increase those volumes to 100,000 tons as of 1st of January next year. So for sure, we stand with Ukraine, but we heavily oppose to those additional duty-free imports given the fact that the European market is well supplied, so after having had this macro look on the world sugar market development, the European market development, how does this translate to the Südzucker Group Sugar segment? You can see in the graph on the right-hand side that the revenues significantly decreased, so in H1 2024/2025, we stood at EUR 2.1 billion in turnover. This has decreased to EUR 1.4 billion, and when it comes to operating profit, it even turned to a loss situation, so in H1 2024/2025, we stood as an operating profit for the group, for the Südzucker segment at EUR 72 million, and this has turned to a loss situation of EUR 89 million operating loss. Let's continue with the special product segment on page 13. Here you can see that after six months, revenue in the special product segment decreased moderately, which is mainly due to the disposal of the dressing and sauces business in the U.S. from Division Freiberger, which was executed in Q2 2024/25, so all in all, revenues declined moderately from EUR 1.14 billion to EUR 1.1 billion in H1 2025/26. Coming to operating profit, we also do see a decrease. You can see from 108 to 71, so the operating profit decreased significantly to EUR 71 million in the first half of this fiscal, and this development is mainly due to the rising production costs that we see in these divisions, which could not fully be passed on to customers. Going forward on page 14, here you can see the development of CropEnergies segment, so the ethanol business. You can see also, let me start with the key figures on the right-hand side. You can see that revenues were down from 484 million EUR in H1 2024/25 to 402 in this H1 of the current fiscal. And operating profit also turned to the negative from 17 million EUR in H1 2024/25 to a minus 13 operating loss in the CropEnergies segment in 2025/26. And the main reason for development in revenues is a decrease in production. So it's not linked to the market development, ethanol market, or the need, or the development for biofuels is still pretty stable in the US, sorry, in the EU. The development of CropEnergies here and on the revenue side was linked to internal reasons. So the decrease is primarily due to significantly lower sales volumes, mainly resulted from both scheduled and also unscheduled maintenance work carried out due to technical issues. When it comes to the operating profit, so as I said, it turned to a negative, and this was significant. That was due to significantly lower prices in the first half, but we will see when we discuss the outlook further on. We always state that ethanol prices are volatile. There are good reasons given supply-demand in Europe. There are good reasons that prices should increase. That's what we also stated in the quarterly calls we had in prior periods and we did see this increase finally in the last 10 days, yeah, or I would say last week, so in the last days, ethanol prices have increased significantly in Europe, so this is a positive sign, and this also is reflected in our forecasts, which I will discuss at the end of this presentation, so let's move on to the Starch segment. This is on page 15. You can see also on the right-hand side that after six months, revenues in the Starch segment declined moderately from EUR 505 million to EUR 474 million in six months of this fiscal, and this was due to the overall decline in prices and volumes. Operating result is significantly below previous year's levels. You can see that it turned downward from EUR 20 million in H1 last year to a EUR 5 million this year. On the positive side, in this reporting period, we benefited from an insurance compensation related to the flood damage at the Austrian plant in Pischelsdorf, which we discussed also in recent quarterly calls with you. Let's move on to the food segment, and as I said, this is really positive to note with the Südzucker Group having a robust and resilient portfolio. You can see that the development in the food segment is positive compared to prior years, H1. We do see an increase in revenues from EUR 824 million last year to EUR 858 million this year. And the operating result also came in above prior years, reaching EUR 68 million. I always mix figures sometimes, yeah? So 68 million, you can see in the middle of the right-hand side, 68 million, positive. So let's move on to the remainder of the income statement after having had this look on the segments, development, operating profit. So in income statement, you can see that after six months, below operating profit, the result from restructuring and special items amounted to a minus EUR 33 million versus a plus of EUR 30 million. This was largely attributable to the Sugar segment in addition to the special product segment. When it comes to the result from companies consolidated at equity, this also amounted to minus EUR 8 and is alongside the Starch segment and the Sugar segment. Looking into the final financial result, you see a minus EUR 70, which is also higher than last year where we had stood in the financial result at a minus EUR 51 million. So what are the reasons for that? There we have to look at different look on both the pure financial interest side and the other financial interest side. When it comes to the pure financial side, when it comes to the interest side, here we can see that here is a minus EUR 53 million, and this is linked to higher interest expense, which is due to an average increase in interest rates. So for this reporting period, we have an average interest rate of 3.7% compared to a 3.4% in the prior year's period. Net financial debt on average in this period was roughly stable at EUR 1.9 billion-EUR 2 billion. And when it comes to the other financial results, this is mainly attributable to exchange rate losses, which are linked to the weak US dollar and the weak British pound. Moving on to the taxes, you can find that on page 19. So taxes on income in H1 came in with a plus of EUR 9 million compared to a minus of EUR 74 million euro in the same period of last year. And this is based on earnings before taxes of minus EUR 69 million euro in the current year versus a EUR 235 million euro in the first six months of 2024/25 fiscal. So finally, looking to earnings per share, not a positive figure and clearly disappointing for us. Earnings per share at the end came in at −EUR 0.38 against +EUR 0.61 in the prior year's period. Let's have a short look on cash flow, working capital investment. You can find that on the following pages. So I start with cash flow on page 21. You can see in the graph or in the table that due to the decline in operating result, cash flow also decreased in the reporting period now to EUR 67 million compared to EUR 343 million in prior year's period. We do see a decrease in working capital, which is positive. On the investment side, CapEx side, investment into fixed assets reached EUR 219 million. So we are on track with reducing CapEx. Investment in financial assets and acquisitions are not meaningful in size. When it comes to the financing activities, so Südzucker had been very successful in refinancing our debt position. Here you can see I have a particular link on the new EUR 700 million hybrid bond, which we issued successfully in May 2025. This is reflected also. You can see that in the cash flow statement. We issued a new EUR 700 million hybrid bond via our Dutch subsidiary, Südzucker International Finance. We financed the existing hybrid bond, which was also worth EUR 700 million, which was issued in summer 2005. The increase and decrease in stakes held in subsidiaries and capital buyback are linked to this transaction. We move on to the balance sheet, which you can find on page 23. So when it comes to net financial debt, by end of August 2025, net financial debt stands at EUR 1.674 billion. The cash inflow from operating activities of EUR 255 million includes in particular the cash flow of EUR 67 million and a strong decrease in working capital. And as I said, investments into CapEx amounted to EUR 219 million. So in total, the net financial debt is rather stable compared to the EUR 1.654 billion where net financial debt stood at the end of last fiscal 29 of February, 28 February 2025. Equity ratio is still solid. So we stand with an equity ratio of 45%. So this is a solid level. Let me now turn to the outlook, which you can find on page 25-26. So unfortunately, we had to revise downwards our operating profit guidance for the group on August 21. That was the MIR guidance that you have seen. So on August 21st, we updated the group guidance for the full fiscal 2025 or 2026, and we expect the group revenues to come in between EUR 8.3 billion and EUR 8.7 billion. That's in the middle of the graph down. And operating result to reach between EUR 100 million and EUR 200 million. This compares to our previous guidance of EUR 150-300 million. So it's a downward review of our forecast, which we had to do on August 21st. But we do confirm this number as of today. So what has changed compared to our previous guidance before going into the details? So overall, it is unchanged now for the group. But we do see a decrease in the Sugar segment. So the Sugar segment is updated. We have not changed the outlook for Special Products and starch. We do see right now a slightly better improvement in CropEnergies, and we do see a better development in food. So this is also linked to what I've already stated. So it's a robust portfolio, and we have different developments in the different segments. So coming to sugar, for the Sugar segment, operating result is now seen in a range from minus EUR 150 million to minus EUR 250 million. Our previous forecast was between minus 100 to minus 200. So there's an additional burden to be seen given the bearish sentiment on non-prices, which I've just explained, of EUR 50 million in Sugar segment. Special products segment unchanged. We currently expect the operating result to decline significantly due to the anticipated rise in cost, which I already explained. For CropEnergies, the development is as the following. So in the segment of CropEnergies, we expect significantly weaker revenues. This is due to lower average ethanol prices compared to the previous year, as well as technical issues, as just explained, following the scheduled and unscheduled maintenance. At the same time, net raw material costs have gone down compared to previous year. And what is positively to note, ethanol prices in the European market, they have just recently started to rise again, which is positive. All in all, we expect the operating result for CropEnergies segment to be on the same level as last year. Already stated for Starch segment, no change. And for the food segment, following an already very successful 2024/25 fiscal, we now expect a slightly improved operating result compared to the previous year, as moderately increased prices are helping to offset the impact of rising costs. So all in all, our group guidance is unchanged compared to the downward revision on August 21st. And we do see group revenues in the range of operating profit between EUR 100 million and EUR 200 million. Looking at the other KPIs for our forecast, you find that on page 26. So for group EBITDA, the range is expected to come in between EUR 470 million and EUR 570 million, with the explanations completely true for, as I just stated, in operating profit. Depreciation is expected to be on previous year's levels. CapEx is expected to remain below prior year's level. And when it comes to Net Financial Debt, we do project Net Financial Debt to remain rather stable compared to the end of last fiscal. So ladies and gentlemen, after this review of our H1 figures and the forecast, so as a summary before closing and coming to the Q&A, I would like to comment that, as expected, the challenging market environment in our core Sugar segment has continued in the second quarter of this fiscal. Market prices started to improve, but not as much as anticipated. Our non-sugar business continued to be a stabilizing factor. But as a consequence, we had to revise downwards our operating profit forecast for this year in August 2025, but we do confirm this outlook, as just explained, as of today. When it comes to financing, we are very proud that we have successfully issued this EUR 700 million bond in May, and now we successfully completed our refinancing activities. There is a EUR 500 million senior bond, also successfully issued in January 2025. And this covers the refinancing of the senior bond maturing end of November 2025. Together with the extended and increased to EUR 800 million syndicated loan, we have established a solid and reliable financing structure for the years ahead. And as I said, I'm very proud of Südzucker and the entire Südzucker finance team who achieved this refinancing over the last months. Also, what is new, but also already communicated for Südzucker board since October 1st, we have Theresa von Fugler on board. We are very happy to have her here with her expertise. And also here, from my side and from the entire team, a very warm welcome to her. We are very much looking forward to her with her to further work on the success of our Südzucker Group. And a very warm welcome to Theresa. So thank you very much to all of you. So far, we are now happy to take your questions. And together with Andreas, I'm happy to give the answers that you might have to these figures. Thank you very much so far. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. Anyone who has a question may press star and one at this time. The first question comes from the line of Karine Elias from Barclays. Please go ahead. Hi, thanks for the presentation, and thanks for taking my questions. I just wanted to go back to your point on the guidance. So just trying to look at the implied guidance for the second half. Does it imply that the price for sugar or the contracted price for sugar would be probably that the crown would be about more than about EUR 100 per ton? In the recent contracting, any cut of that would be very useful, especially as we think about the start of 2027. And then just going back to your point on the net debt, your leverage obviously is picked up, that's partially because of the lower EBITDA. What type of leverage are you comfortable staying in and how long, especially as you think about potential actions from the reaction? Thank you. Thank you, Karine, for your questions. When it comes to sugar prices, I cannot disclose our individual prices. So sugar prices in our market is competition-sensitive information. So what I can comment is available market data and just very broadly expectations. What we did say at the beginning of this fiscal, when we put up our budget, we stated that when it comes to the sugar availability in Europe, we did foresee a decline. And this decline that we had foreseen was linked to the fact that we, on our side, decreased the acreage significantly by roughly 15%. And if you look into EU market data, the overall trend for hectares for beets in this sugar marketing year was also decreased by roughly 11%. So given normal harvest, we would have seen a strong decline in beet availability and the sugar availability in Europe. And this was the base assumption for our assumption that sugar prices should rise. At the end of the day, they increased, yeah, but they did not increase to the extent that we have foreseen originally. And that was the reason why we had to revise downward also the development in the Sugar segments. In a nutshell, yes, there is a price increase compared to last year, but not to the extent that we have foreseen because sugar availability and the harvesting conditions, they are much better than we have anticipated. When it comes to net financial debt, we are rating H&M staff, we revise downwards our rating. And what are the levels we feel comfortable? This is clearly if net financial debt over cash flow or EBITDA is below 3.5. We are not yet there, but we work hard on that. And what we feel comfortable is 3.5. And there's a clear commitment from the board to investment-grade rating. And so we have put into place the measures to reduce costs. We go into all in each every cost positions. We do all our best to decrease CapEx, but decreasing CapEx is not so easy because you have ongoing projects with contracts in place. But what we can do to cancel or postpone, we do. And all in all, we strive to come below 3.5 net debt over EBITDA. But it's not the case as of today, but this is our ambition level, yeah, clearly. Understood. Thank you, Dr. [uncertain] . Thanks. Thank you. The next question comes from the line of Hartmut Moers from Matelan Research. Please go ahead. Yes, good morning. I have a couple of questions, and probably we could go through them one by one. So the first one would be on the Sugar segment here. What we find basically in the second quarter is roughly the same level, a bit below the sales level of the first quarter. And I mean, you should have basically a similar price level, at least with regard to the predominant part of your business, as your October contracts still lasted into the second quarter. But usually, you tend to have better volumes in the second quarter compared to the first. So one would have or one could have thought that your sales increase in the Sugar segment in the second quarter compared to the first. So what was the reason here for, yeah, being just south of that level? And you still had quite a number of special items in the Sugar segment. How shall we look about that going forward? Meaning, would that now something related to the shutdowns you had on the AGRANA side of the business? And is there coming more with regard to the cost optimization measures you're just taking? So how shall we look about that going forward? So that's on the Sugar segment. For the volumes and price development in sugar, I tend to rely more on H1 figures than on individual quarters because you can also have some shifts, yeah. So for me, the more reliable way to look at it is really H1 as total. And we do see for the six months that there is both a decrease in volumes and a decrease in prices, yeah. So we do see that the environment for sugar. There is some volume decreases and also for prices. H1 versus H1 last year or? Yeah, yeah, yeah. Compare H1 to H1. So there we have lower volumes and lower prices. And the lower volumes, they are across all markets. It's not one particular market or specific region. So for us, it's an overall trend that we have reduced volumes. Okay. And going forward for the coming year, you're staying roughly level in terms of volumes. Is that a fair assumption? Yeah, that's a fair assumption. But we have to see, we did see some reductions in sugar consumption, for example, in beverages. Yeah, there's less sugar in beverages. And we also do see, for example, less chocolate sold. This is linked to the fact that cocoa is very expensive. So there is less chocolate sold and thus less sugar into chocolate. These are trends which can change, but for the time being, there's a slight decrease there, and we have to monitor those things. Okay. Thank you. Second one would be on, on restructuring. So within the restructuring side, so as I said, particular link to the Sugar segment. And this is a follow-up cost of the restructuring we had, for example, with the closure of the two plants, Leopoldsdorf and Hrušovany, for example. Okay. But is that finished now, or shall we plan with further one-off items in the coming quarters? When it comes to those two plants, it's finished. But when it comes to special items coming forward, the issue of special items is that they are not really predictable. So we cannot exclude neither that it's that you will state that, but it's also possible that additional special items could come up in Q3, Q4. So we have to, when we start to do the planning for the years to come, we have to do our goodwill impairment test and all of that. But this will be then in Q3, Q4. It's too early to say whether there can be additional one-off items, but I cannot exclude them. Yeah. I mean, but there's nothing scheduled so far. So in terms of cost optimization or something, there's nothing you have in your budgeting right now? There are some special items also from the first six months when it comes to restructuring, when it comes to personnel severance payments that is possible. So what is executed or on the table at the end of August, that means for the first six months, this is included. But for sure, there can come additional points can come up in the development of Q3, Q4. Cannot exclude, but it's too early to say. Okay. Thank you. With regard to CropEnergies, all your technical issues and so on, this is finalized now. So my question would be with regard to capacity utilization. So obviously, you had a rather low capacity utilization in the first half of the year due to these issues. But are we now looking to a more normal level again, or are there any reasons why one or the other side might not work at full capacity in the second half of the year? There's nothing scheduled. And as I said, the market environment for biofuels as a total is positive. This is also the reason why prices have gone up significantly. There was a strong driving season, and on the months to come, there's nothing particular to see. So I would assume a high capacity utilization unless other technical issues would arise. But from the market perspective, there's good reasons to use fully the equipments we have. Perfect. And then I would like to come to your outlook. And I'm a bit lost here. So what you're saying compared to what you said on August 21st, you have somewhat reduced or specified the range for your Sugar segment, which is a bit weaker than what you expected still in August. And you have compensated this with a more positive outlook on the CropEnergies on the fruit side. But looking at the extent of the changes, I would guess. I mean, you've upped fruit by one notch, which is maximum of 4% on crop. You're up, yeah, also five, six, seven million, so to come to 22 million. But if I took the midpoint of your new sugar guidance, which would be minus 200, it would basically be impossible for you under the indications that you have given to reach the midpoint of your group guidance. You would be somewhat below that. And that already would assume that, in particular, starch and Special Products would also materially improve in the second half of the year. And we would not look at run rates of the current Q2 level. So is what you're saying that we should rather look on your group guidance, not at the midpoint, but rather at the lower end of your guidance? Or how shall we interpret this? As you said, nothing to be confused. It's exactly what you said. So we confirmed the group guidance 100-200, and we are slightly for the group guidance, we are slightly below midpoint, but close to midpoint. But rather, we are not at the lower end, but we are close to midpoint, but slightly lower below midpoint. Okay. That's fair. Okay. But not to an extent which would force us to update the guidance, the rules of MIR. So we are close to midpoint, slightly below. Okay. No, that's, let's say, feasible under the assumption that Special Products and starch would make a major jump from the Q2 level to the north. Then you arrive at exactly what you're saying. But you can confirm that this is the assumption then. That in starch and Special Products, Q3 and Q4 will be significantly better than Q2. As I stated at the beginning, so we do not give particular ranges or points for the segments. So our main focus is on group level. As I said, it's a robust portfolio. We have different developments in the different segments. And the other thing that is also true, I said, that we believe that Q3 should be the turning point to the better in all of that. But your analysis is fully correct. We confirm group guidance EUR 100-200 million. Perfect. Last point would be on the cost optimization measures you mentioned earlier. Could you just give us an update on that? I mean, you've already mentioned Südzucker, but could you be a bit more precise on the timeline? And also, I mean, you have said in the last call that the cost optimization is roughly split 50/50 between sugar and between Südzucker and AGRANA. Would you be prepared also to give a split between sugar and non-sugar divisions? This is unchanged. So this is still true what I said in recent conference calls. We have initiated a lot of cost-saving initiatives. We are here on track. And the different amounts that have already been communicated, we still stick to them. So in total, we strive for savings of EUR 200 million for the Südzucker Group, which are to materialize in the coming years. For this fiscal, it is still our target, and we are on track for EUR 80 million cost savings, which is half of half AGRANA and then Südzucker. AGRANA has the program called Next Level, and here, they strive up for savings up to EUR 80-100 million per year starting in 2027, 2028, so we started at Südzucker. This program is called Optimum, which strives for EUR 100 million savings in the Sugar segment, also coming into effect fully in the next three years, so we are on track, but it's not that all of the amounts are already visible this year, so this will build up, but in general, we are on track, and there's nothing changed to previous communications on our cost-saving measures. Okay, but just to make that clear, the EUR 100 million coming from Südzucker are 100% sugar. There's nothing in the other divisions, in your other divisions. No. In total, we strive for 200 after, let's say, three years. And this is 100 for sugar and 100 for the others. Okay. Okay. Thank you very much. That was very helpful. Welcome. As a reminder, if you wish to register for a question, please press star and one on your telephone. We now have a question from the line of Oliver Schwarz from Warburg Research. Please go ahead. Good morning, gentlemen. Thank you for taking my question. May I come back to CropEnergies first? I appreciate that you are flexible enough to notch up your outlook following the increase in ethanol prices. And you already have given some remarks regarding the reasons behind that. However, I guess driving season should now be over. We still have the problem of U.S. imports into the European market and so on and so forth. So I'm wondering what you think, how sustainable this increase is given the overall structural situation the European market is in. And that would lead me to my second question of your U.K. asset Ensus. You stated that you are looking for full capacity utilization in the second half of this year. And I guess that very much includes Ensus then. So what's the status of this last remaining asset that the U.K. has? It seems like especially the U.K. market is under heavy pressure given that they have made trade deals with the U.S. that might be less favorable for the U.K. bioethanol industry. And one of your competitors has already pulled the plug on his plant. So yours is the only remaining one. And I'm wondering what's the situation there. And lastly, could you give us an update on your future, let's say, value chain that you are currently trying to expand into chemicals, given that the chemical industry in Europe has a lot of structural problems at the moment and is shrinking? So your upcoming production, once those assets currently under construction have started up, I guess your customer base must or your potential customer base must have shrunk. And those who are still in the game, they currently have problems regarding their, when it comes to pushing their volumes in the market. So how welcome will your product be coming in addition to what's already available in the market? That would be my three questions on CropEnergies. Thank you. For ethanol prices, so when you look into the fiscal, so we had ethanol prices between, let's say, roughly 600, quite stable over the last since the start of this fiscal. So starting with 700, our first forecast was to see 700 and plus, but prices in fact decreased to roughly 600 since the beginning of this fiscal. And what we did see over the last, it started in September, but materialized in October. Now the prices have jumped over 800. If you now ask me whether I believe this to continue, I just have to say I cannot give you a promise because we see, as we always state, ethanol prices are volatile. For sure, there is always the risk of major changes, be it on the tech side, be it on the import side, be it on bilateral agreements between countries. So it's really difficult to predict. But for the time being, we see EUR 800. If you look into the forward curve, there's still a backwardation. So the anticipation is that this EUR 800 is not to last. But there are good reasons. Also, when I look into supply and demand, there is not too much volume in ARA, Antwerp, Rotterdam region. So I believe that prices should be supportive, but I cannot give you a guarantee. It is still a volatile market. It's a commodity market. It will depend on factors. But from the supply and demand side, or especially from the demand side, there's robust demand for ethanol. But for sure, there's no guarantee. We are very happy with the price increase. To be seen how long and to which extent this will last. But we have taken this into our forecast to a certain extent with the better price assumptions that we have seen so far. When it comes to Ensus, when I said we strive for full capacity utilization, there's a question mark still on Ensus. So the negotiations with the U.K. government on our support package are still ongoing. I cannot disclose any details. We are confident because we believe Ensus is really significant to U.K. industry, be it on the ethanol side, but also on the CO2 side and the co-product side. So it's an important player in the industrial landscape of Britain. So we hope that the discussions or the negotiations with the government would find a positive end. But I cannot disclose in that it's not finally done. But you have seen that the competitor has stated to stop production. We are still in negotiations with the government.So there's a question mark on Ensus. Your third question was on bio-based chemicals. It is true. Your concern comes from the point that climate mitigation measures are under discussion. This started with the Trump administration putting into question climate change and focusing much more on fossil fuels. For sure, this is at present a trend or a downward trend for climate protection measures. But this does not lead us to change our strategy. We still believe we need green carbohydrates. We have to get rid of fossil fuels, be it in the transport sector, be it in chemistry. And we continue with our project as foreseen. So start of operations is to come as foreseen. And we do have still positive discussions with potential customers. The product that we want to produce is ethyl acetate, which is a solvent, which is needed for many also very interesting products, be it solvents, be it paints, be it coatings, be it glue adhesives. It goes into nail polish and furniture, so this is really interesting products, and our customers, they also have very much interest in having this green product, so there's no change in our strategy, but I confirm the overall framework for climate mitigation measures has changed, but I believe this to be not a continuous trend because I think we will all have to do our best to reduce our carbon footprint, and we will continue to do so. Thank you for that. I guess I'll step back into the line and ask the next bunch of questions after that. Thank you. Okay. The next question comes from the line of Setu Sharda from Barclays. Please go ahead. Yeah. Hi. Good morning, so my question is, what was the achieved average price in sugar marketing this year? And was it in line or lower versus last year? And what is your exposure to spot prices move over the course of the next 12 months? As I stated, I cannot disclose sugar prices because we are in a commodity market and for competition reasons. I cannot disclose any precise numbers on sugar prices of Südzucker. As an overall trend and you will find that in our investor slide that you have to rely on available market data and what you can see is both from the world market sugar market prices. There is a downward trend since the beginning of the fiscal and the same is true for European sugar prices. They have declined significantly. And based on the European sugar prices, you can make your calculations for Südzucker group. But because typically our prices very much rely on European sugar prices, but I cannot disclose individual Südzucker sugar prices. Okay. And what is your exposure to spot prices? How much you have contracted this year? Our exposure to spot prices is not meaningful in size because typically we do one-year contracts with customers. Those customers do foresee a certain flexibility in volumes. So we have a certain development. It also depends on some regions have more spot contracts than others. But all in all, spot contracts or spot volumes are not meaningful in size. We do have yearly contracts. Okay. Thanks. And one more thing. Can you give some color on what has changed in sugar production, your expectation versus Q1 stage? There was a mention that you expect better harvest, so. Yeah. So when it comes to Europe, that's what you have seen. So go back to page 11 for Europe. It is foreseen that production should come out in 25, 26 at 15.9 compared to 17.0 in last year. So there is a reduction in European sugar production. What has changed is the extent of this decrease. I would have assumed, or we have assumed when setting up our budget, a stronger decrease. This stronger decrease was based on the fact that we knew from our side that we decreased significantly the acreage in our regions. For all of Europe, the decrease in acreage was 11%. That was the number that was known, let's say, in March, April when we set up our budget. And that means, given normal harvesting conditions, let's say, for example, based on the average of the last five years, this would have led to a significant decrease in feed and thus sugar production. What has changed and what we also anticipated leading to reasons for lower sugar production was the diseases that we have seen last year. So one is called Stolbur, the other SBR Syndrome des Basses Richesses. And what we also have included in our initial forecast was a very dry summer. Yeah. That's what we called it at the time when we lastly discussed. We called it our 75% scenario. When setting up the budget in March, April, the projections for the weather conditions in summer indicated a very dry and hot summer. This would have led to the fact that also the protection measures would not have been very effective, or it was unclear to which extent those measures would have been effective. This led us to our initial forecast with a much lower sugar production. At the end of the day, when this is now what has changed, July came out very wet and cold. That was beneficial to the beets. The same was true for August. Here, the weather conditions have shown sunny days and rainy days and cold nights. This is the perfect mix for the beets. What we do see today, and this is not what we have expected, we do see very good harvesting conditions in Europe. There's much more beet and solid beet and without diseases available for this sugar campaign. This was not what we had anticipated in our initial budget. So it's positive for the farmers. But given it leads to a much better sugar availability in Europe, this has brought us a bearish sentiment on the prices. And this was the reason why at the end of the day, we had to decrease our forecast for the Sugar segment. We have a follow-up question from the line of Oliver Schwarz from Warburg Research. Please go ahead. Actually, it's more than one. I'm sorry about that. But hopefully, I can. Oh, we still have time, Oliver. No problem. I can quickly talk you through all of my questions. Sorry for that. Firstly, starch. You're talking about higher raw material costs. Given grain prices have declined due to we didn't only have a strong harvest in sugar, but also all other crops seem to be affected. Positive volume development all over the place, and that obviously also puts pressure on grain prices. Still, in starch, you're talking about higher raw material costs, which makes me wonder, is that still, let's say, a remnant of hedging in regard to raw material costs that will peter off over time? Or why is that? Yeah. As I stated, so in H1 compared to H1 previous year, we do see higher raw material and energy costs in Starch segment, so this is true for the corn prices. This is true for the wheat prices, and this is also true for the energy. It is true what you said that when you look at MATIF quotations, grain prices have come down, but there's also always a question of hedging. What hedging positions do you have? This can have an impact. I cannot disclose all the details, but hedging can have an impact. And also, it has an impact in the regions where you buy your grain or corn or whatever. So MATIF is always the price in Rouen, France. And typically, you have plus and minuses in different regions. And so this can lead to the fact that even if Rouen, MATIF prices go down, you can have different prices depending on availability in certain regions or quality in certain regions. So all in all, this led to the fact that for the Starch segment, unfortunately, we do see compared to H1 last year, higher raw material costs in all the three segments. It's true for corn. It's true for wheat. And it's true for energy. Would that be true also for H2? Or is this trend to reverse in H2? I don't have that figure in mind. Sorry. We will have to see. I mean, we have the full year guidance, but I do not have on hand the different assumptions for those cost components for Starch segments. I don't know. We can have a look, but here, I don't have that with me. Yeah. I get that. But if it's solely, let's say, a function of your hedging position, I guess you should have an insight in that. But we can do that at a later stage. No problem at all. Second question on fruit. Obviously, the bright spot in your portfolio at the moment. When looking at the sales development and looking at the comments on volumes, it seems like more or less stable volumes. Sales are not greatly up, which indicates that prices are mostly unchanged as well. So this increase in profitability must have had something to do with lower costs. Is that a result of cost-cutting measures? So is that something that is company-specific? Or is that lower raw material costs that might have to be passed on over time to customers? There's not one answer putting everything into or one silver bullet answering everything. So because we have to when we talk about fruit, there are two divisions. So one division is Fruit Preparation. The other one is Fruit Concentrates. And so the development in those divisions is not parallel. Both of them are positive, show an increase in operating profit and turnover. But the development within the cost positions is different. Your question, for sure, we do all to entire Südzucker, we do all to reduce administration costs and so forth. So there's one aspect of that into that. But particularly for the fruit, we do have also increase in material costs. So this is still true. This is true for Fruit Preparations. So there is an upward trend for those fruit components that we buy. And the same is true for the concentrate business. Also here, the Fruit Concentrates, they show an increase in material prices. But we have a good development on the pricing situation and on the other costs. So it's a mix of all, but it's not one explanation that fits for all of the divisions. But in general, material prices go up. Okay. Thank you very much for that. And perhaps can you? I know it's perhaps a bit delayed now, but can you share about your key thoughts about, let's say, the exchange of your hybrid bond? Obviously, the new hybrid bond is a bit more expensive than the old one was when it comes to the coupon.You had costs regarding issuing the bond and also costs regarding to buy the old hybrid bond back. So there needs to be an upside somewhere. And given that we are looking for interest rates to rather go down than go up, at least that's my takeaway from the market at the moment, it seems like the only caveat that is out there is that the new bond doesn't have this operating cash flow covenant that the old one had, which basically implies that you might not be that confident with future operating cash flow development so that some breach of that covenant might be or might have been in the cards in the foreseeable future. That would be my takeaway. But I guess you can easily talk me out of that assumption and give me a better reason for that exchange. Oliver, I wouldn't subscribe to that fully. For us, the main reason really was that the old hybrid was dated from 2005 and was, at the time, one of the first ones, but now was also the last one. So it was my objective to really modernize the entire financial situation of the balance sheet. That means I wanted to review and modernize together with my team the entire financing. This is, you have to put this into context of the entire refinancing. We did more than EUR 2 billion refinancing in the last months. So this was very successful. We issued, as I said, the new EUR 500 million senior bond. We did modernize the revolving credit facility with our core banks, increasing that from EUR 600 million to EUR 800 million. We still have in place the commercial paper EUR 600 million is still in place. We have the senior bond. We have the hybrid bond. We put into place a factoring program, so we modernized everything, and part of this modernization was the hybrid. And I'm very happy to have this new EUR 700 million hybrid bond now on the balance sheet, which is fully in line with all the other hybrid bond structures which we see, so it's part of a modernization of the entire balance sheet. This really puts us in a good position going forward. The entire refinancing is done, and so this is positive. I get that modernization sounds very positive, but what is actually the advantage for Südzucker from the new hybrid bond versus the old one? What is, in those terms, more modern than the old one was? The modernization of the hybrid bond now is fully in line with all the other hybrids in place, so it has no more a cash flow trigger. So it's fully in line with the others. And for sure, this is an advantage not having the cash flow trigger. Okay. So it is the cash flow trigger that is the advantage not to have it. That's what you said. That's not what I said. What did you say? Okay. Let's leave it like that. Okay. Thank you very much for that. And lastly, and I promise that's my last question, could you talk me through the bridge from the EBITDA to expected net debt level? Given the fact that after the first six months of the current fiscal year, we saw an increase in net debt by give or take 20 million EUR, you are aiming for a net debt level of 1630, which is basically currently around 40 million lower than the current level. Your guidance is EUR 100 million-EUR 200 million for the full year. So that gives you EUR 50 million-EUR 150 million additional EBIT for the full year. Could you talk me through that stabilizes the bridge from that increasing EBIT, especially in the second half of this year, to the changes in net debt? Are we expected to see an increase, so some reversal of working capital in the second half of this year, especially as Südzucker tends to pay its sugar beet farmers for the harvest in the second half of this year? Thank you. So this is Andreas speaking. Maybe I can comment on when it comes to the operating cash flow to start there. As you indicated, results are down. But we are also expecting a significant reduction, which already started, and in the first half, a significant reduction in our net working capital. You have also seen that within the first half year, the CapEx levels are lower than in previous years. That trend should continue also in the second half of the current fiscal year, and the combination of those things should come out in a way that our net financial debt position by the end of the year, we expect to be rather in the ballpark of what we had by the end of 2024, 2025, so the lower operating result should be compensated basically by the net working capital, and obviously, the dividends, when it comes to what we paid on dividends this year, it's also a much lower number than in previous years. Okay. Maybe I didn't make myself clear that much. Sorry for that. I was specifically asking for the developments in H2. So you've got EUR 50 million, let's say, EBIT under your belt, give or take, for the first half year. Your guidance is out there for EUR 100-200 million. That gives you a residual number for the second half year of EUR 50-150 million in EBIT. Currently, your net debt is up compared to the beginning of the fiscal year by EUR 40 million. But by the end of the fiscal year, we are looking for basically the same level as last year. And I was just wondering, how does that compute, given that you just said CapEx will be lower compared to last year and working capital releases might continue in the second half of this year? How does that compute with coming up with net financial debt on the same level as last year? Thank you. So we expect a continuation of our working capital, let's say, improvement process that we indicated or that we already started. And that should contribute, or this is our expectation, that this contributes to offsetting the low operating results. And again, when it comes to CapEx also, in the second half of this year, the number is not as significant. Dividends are already paid. So when it comes to the balance of our net debt position, that is in line with what we see in the numbers, yeah. Maybe it's a little lost. We are running out of time. So maybe we can postpone it to a later moment. But what you can take is, for the minutes, we do foresee that net financial debt at the end of this fiscal should be roughly in line with last year, yeah. But isn't that very conservative? Shouldn't it be lower than that given the? Yeah. I think we have to stop it. I mean, our assumption is, at the end of the day, we strive for having net financial debt on the same level like last year. Got it. Thank you very much. Thank you. Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Andreas Rother for any closing remarks. Thank you very much. And thank you very much to all of you for your participation and your interest in Südzucker. Also, thank you very much for your questions. As Stephan already indicated, when it comes to additional questions that should come up in the aftermath of this call, we, as the investor relations department, are always available via phone or email at any time. Obviously, we are trying our best to come back to you as quick and fast as possible. Presentation of the Q3 figures will be held in the beginning of January 2026. Until then, I wish you all the best. Stay safe and take care, and talk to you soon. Thank you very much.

Speaker 7: Ladies and gentlemen, good morning from Mannheim. We welcome all of you to our conference call. The underlying presentation for this call has already been published this morning on our website. Today, we released the statement for the first half of the financial year 2025/2026. We are going to present you the highlights of the period. We maintain our full-year group earnings guidance for the business year, which we adjusted on August 21st. Following the presentation, we are going to answer your questions. As already mentioned, a recording of this call will be available on our homepage shortly after the call. Now, let me hand over to our CFO, Dr. Stephan Meeder. Ladies and gentlemen, good morning from Mannheim. ladies and gentlemen good morning from mannheim we welcome all of you to our conference We welcome all of you to our conference call. ladies and gentlemen good morning from mannheim we welcome all of you to our conference call The underlying presentation for this call has already been published this morning on our website. the underlying presentation for this call has already been published this morning on our website Today, we released the statement for the first half of the financial year 2025/2026. today we released the statement for the first half of the financial year 2025/2026 We are going to present you the highlights of the period. we are going to present you the highlights of the period We maintain our full-year group earnings guidance for the business year, which we adjusted on August 21st. we maintain our full-year group earnings guidance for the business year which we adjusted on august 21st Following the presentation, we are going to answer your questions. following the presentation we are going to answer your questions As already mentioned, a recording of this call will be available on our homepage shortly after the call. as already mentioned a recording of this call will be available on our homepage shortly after the call Now, let me hand over to our CFO, Dr. Stephan Meeder. now let me hand over to our cfo dr stephan meeder

Speaker 2: Thank you, Mathilde and Andreas, for the introductions. Ladies and gentlemen, also a warm welcome from my side, and thank you very much to all of you for your interest showing in Südzucker. As mentioned, I would like to give you a brief overview about the business performance in the first six months of fiscal 2025/26, and I would like to give you some more details about the confirmed earnings guidance for fiscal 2025/26. So let me start with the highlights of the past six months of the fiscal. You will find this on page five. But before going into the details upfront, let me say a more general remark on where we stand as of today. Thank you, Mathilde and Andreas, for the introductions. thank you mathilde and andreas for the introductions Ladies and gentlemen, also a warm welcome from my side, and thank you very much to all of you for your interest showing in Südzucker. ladies and gentlemen also a warm welcome from my side and thank you very much to all of you for your interest showing in südzucker As mentioned, I would like to give you a brief overview about the business performance in the first six months of fiscal 2025/26, and I would like to give you some more details about the confirmed earnings guidance for fiscal 2025/26. as mentioned i would like to give you a brief overview about the business performance in the first six months of fiscal 2025/26 and i would like to give you some more details about the confirmed earnings guidance for fiscal 2025/26 So let me start with the highlights of the past six months of the fiscal. so let me start with the highlights of the past six months of the fiscal You will find this on page five. you will find this on page five But before going into the details upfront, let me say a more general remark on where we stand as of today. but before going into the details upfront let me say a more general remark on where we stand as of today So you can see in the figures that there is a weak performance in Q2. Yes, it came in as expected, but it's clear it's a weak performance. But on the other side, we confirm our full-year financial guidance for the operating profit as of today, which stands at EUR 100-200 million. So when looking into the remainder of the year, we believe that from Q3 onwards, this should be the turning point to the positive. But the figures that I will continue to explain to you in the following for Q2 and H1 show a weak performance. So going into the details, you can see that Q2 performance was not able to match prior year's numbers for Q2, and the same is true for H1 compared to H1. And after six months, we have reached the following numbers. So you can see in the figures that there is a weak performance in Q2. so you can see in the figures that there is a weak performance in q2 Yes, it came in as expected, but it's clear it's a weak performance. yes it came in as expected but it's clear it's a weak performance But on the other side, we confirm our full-year financial guidance for the operating profit as of today, which stands at EUR 100-200 million. but on the other side we confirm our full-year financial guidance for the operating profit as of today which stands at eur 100-200 million So when looking into the remainder of the year, we believe that from Q3 onwards, this should be the turning point to the positive. so when looking into the remainder of the year we believe that from q3 onwards this should be the turning point to the positive But the figures that I will continue to explain to you in the following for Q2 and H1 show a weak performance. but the figures that i will continue to explain to you in the following for q2 and h1 show a weak performance So going into the details, you can see that Q2 performance was not able to match prior year's numbers for Q2, and the same is true for H1 compared to H1. so going into the details you can see that q2 performance was not able to match prior year's numbers for q2 and the same is true for h1 compared to h1 And after six months, we have reached the following numbers. and after six months we have reached the following numbers You can see group revenues came in at roughly EUR 4.2 billion, which is significantly below prior year's level. Same is true for group EBITDA, which was significantly down by 55% to EUR 189 million. And group operating profit also only reached EUR 42 million versus EUR 269 million in previous year's period. Same is true for cash flow, which decreased to EUR 67 million. And when it comes to net financial debt, so net financial debt as of 31st of August this year came in EUR 285 million below prior year's level and did remain stable compared to the end of fiscal 2024/25, which is end of February 2025. You can see group revenues came in at roughly EUR 4.2 billion, which is significantly below prior year's level. you can see group revenues came in at roughly eur 4.2 billion which is significantly below prior year's level Same is true for group EBITDA, which was significantly down by 55% to EUR 189 million. same is true for group ebitda which was significantly down by 55% to eur 189 million And group operating profit also only reached EUR 42 million versus EUR 269 million in previous year's period. and group operating profit also only reached eur 42 million versus eur 269 million in previous year's period Same is true for cash flow, which decreased to EUR 67 million. same is true for cash flow which decreased to eur 67 million And when it comes to net financial debt, so net financial debt as of 31st of August this year came in EUR 285 million below prior year's level and did remain stable compared to the end of fiscal 2024/25, which is end of February 2025. and when it comes to net financial debt so net financial debt as of 31st of august this year came in eur 285 million below prior year's level and did remain stable compared to the end of fiscal 2024/25 which is end of february 2025 So let me continue with the next pages. We have a look here on H1, so bringing H1 into historic context. You can see that especially for operating group result, this is a strong decline compared to previous year's periods. You can see that the decline is in revenues, EBITDA, and operating result. Particularly affected in H1 are the segments of sugar, Special Products, CropEnergies, starch. But we do see an increase in the Fruit segment, and that is something important to note. We do this in each and every quarter. We know we are active in volatile markets, but what is good about Südzucker Group is that it is a strong and resilient portfolio, and we always have divisions who do also benefit for the group with a strong performance. So let me continue with the next pages. so let me continue with the next pages We have a look here on H1, so bringing H1 into historic context. we have a look here on h1 so bringing h1 into historic context You can see that especially for operating group result, this is a strong decline compared to previous year's periods. you can see that especially for operating group result this is a strong decline compared to previous year's periods You can see that the decline is in revenues, EBITDA, and operating result. you can see that the decline is in revenues ebitda and operating result Particularly affected in H1 are the segments of sugar, Special Products, CropEnergies, starch. particularly affected in h1 are the segments of sugar special products cropenergies starch But we do see an increase in the Fruit segment, and that is something important to note. but we do see an increase in the fruit segment and that is something important to note We do this in each and every quarter. we do this in each and every quarter We know we are active in volatile markets, but what is good about Südzucker Group is that it is a strong and resilient portfolio, and we always have divisions who do also benefit for the group with a strong performance. we know we are active in volatile markets but what is good about südzucker group is that it is a strong and resilient portfolio and we always have divisions who do also benefit for the group with a strong performance And overall, this year, this is the Fruit segment, but we also see a good development in the divisions of Beneo and Freiberger. So on August 21st, we changed our group guidance for the fiscal 2025/26. We now expect revenues to range between EUR 8.3 billion and EUR 8.7 billion for the full year, EBITDA between EUR 470 million and EUR 570 million, and operating profit between EUR 100 million and EUR 200 million. So further details for the outlook, I will give on later. What we can see if we move on to what we see on page 10 is there are persistently low sugar prices in the global market in the EU market environment with continuous impact into autumn 2025. And overall, this year, this is the Fruit segment, but we also see a good development in the divisions of Beneo and Freiberger. and overall this year this is the fruit segment but we also see a good development in the divisions of beneo and freiberger So on August 21st, we changed our group guidance for the fiscal 2025/26. so on august 21st we changed our group guidance for the fiscal 2025/26 We now expect revenues to range between EUR 8.3 billion and EUR 8.7 billion for the full year, EBITDA between EUR 470 million and EUR 570 million, and operating profit between EUR 100 million and EUR 200 million. we now expect revenues to range between eur 8.3 billion and eur 8.7 billion for the full year ebitda between eur 470 million and eur 570 million and operating profit between eur 100 million and eur 200 million So further details for the outlook, I will give on later. so further details for the outlook i will give on later What we can see if we move on to what we see on page 10 is there are persistently low sugar prices in the global market in the EU market environment with continuous impact into autumn 2025. what we can see if we move on to what we see on page 10 is there are persistently low sugar prices in the global market in the eu market environment with continuous impact into autumn 2025 And we also do see continuous volatility or volatility going forward, which we cannot exclude due to geopolitical and global economic conditions. You are all fully aware of that. So let's move on to page 9. You can find it's a little bit difficult to read, but it's a little bit also a backup information for you. You can find the detailed results of the segments. And as already mentioned, after six months, group revenues came in below previous levels. We do see revenues decline in the segments of sugar, Special Products, CropEnergies, and starch, but revenues rose slightly in the food segment. And we also do see continuous volatility or volatility going forward, which we cannot exclude due to geopolitical and global economic conditions. and we also do see continuous volatility or volatility going forward which we cannot exclude due to geopolitical and global economic conditions You are all fully aware of that. you are all fully aware of that So let's move on to page 9. so let's move on to page 9 You can find it's a little bit difficult to read, but it's a little bit also a backup information for you. you can find it's a little bit difficult to read but it's a little bit also a backup information for you You can find the detailed results of the segments. you can find the detailed results of the segments And as already mentioned, after six months, group revenues came in below previous levels. and as already mentioned after six months group revenues came in below previous levels We do see revenues decline in the segments of sugar, Special Products, CropEnergies, and starch, but revenues rose slightly in the food segment. we do see revenues decline in the segments of sugar special products cropenergies and starch but revenues rose slightly in the food segment When it comes to the EBITDA, as already stated, there's a decrease as well as in operating result. This is largely driven by the Sugar segment, but was also significantly below prior year's level in Special Products, CropEnergies, and Starch segments, and positively to note the food segment showed an increase. Most important, which is for H1 really important to discuss in more detail, is the development in the Sugar segment and to see the developments in the Sugar segment. We also always have to have a close look at what happens on the global sugar market. I start with the global sugar market on page 10 because this has an impact on the European sugar market, and the development of the European sugar market has an effect or is quite demonstrated for the Sugar segment development in Südzucker Group. When it comes to the EBITDA, as already stated, there's a decrease as well as in operating result. when it comes to the ebitda as already stated there's a decrease as well as in operating result This is largely driven by the Sugar segment, but was also significantly below prior year's level in Special Products, Crop Energies, and Starch segments, and positively to note the food segment showed an increase. this is largely driven by the sugar segment but was also significantly below prior year's level in special products crop energies and starch segments and positively to note the food segment showed an increase Most important, which is for H1 really important to discuss in more detail, is the development in the Sugar segment and to see the developments in the Sugar segment. most important which is for h1 really important to discuss in more detail is the development in the sugar segment and to see the developments in the sugar segment We also always have to have a close look at what happens on the global sugar market. we also always have to have a close look at what happens on the global sugar market I start with the global sugar market on page 10 because this has an impact on the European sugar market, and the development of the European sugar market has an effect or is quite demonstrated for the Sugar segment development in Südzucker Group. i start with the global sugar market on page 10 because this has an impact on the european sugar market and the development of the european sugar market has an effect or is quite demonstrated for the sugar segment development in südzucker group So let's have a look on the sugar market as a total on the worldwide scale. You will find this, as I said, on page 10. Let's have first a look at what is positively on the world market. You can see that consumption is still growing. So on a worldwide scale, the sugar market is still growing. You see this is the normal blue bars. You can see that consumption is going up. Dark blue is the production. And you can see that we have in 2024/25 a market with a deficit, and deficit markets and commodity markets are beneficial to the prices. That is the situation we started. But in 2025/26 sugar marketing year, and just as a reminder, sugar marketing year always starts 1st of October and goes until end of September. So let's have a look on the sugar market as a total on the worldwide scale. so let's have a look on the sugar market as a total on the worldwide scale You will find this, as I said, on page 10. you will find this as i said on page 10 Let's have first a look at what is positively on the world market. let's have first a look at what is positively on the world market You can see that consumption is still growing. you can see that consumption is still growing So on a worldwide scale, the sugar market is still growing. so on a worldwide scale the sugar market is still growing You see this is the normal blue bars. you see this is the normal blue bars You can see that consumption is going up. you can see that consumption is going up Dark blue is the production. dark blue is the production And you can see that we have in 2024/25 a market with a deficit, and deficit markets and commodity markets are beneficial to the prices. and you can see that we have in 2024/25 a market with a deficit and deficit markets and commodity markets are beneficial to the prices That is the situation we started. that is the situation we started But in 2025/26 sugar marketing year, and just as a reminder, sugar marketing year always starts 1st of October and goes until end of September. but in 2025/26 sugar marketing year and just as a reminder sugar marketing year always starts 1st of october and goes until end of september So for sugar marketing years 2025/26 and 2026/27, it is expected that the market is in a surplus. That means production going over consumption. And in a commodity market, this is leading to a bearish sentiment on the prices. This is also, if you have a look on the sugar market prices. We do not have this in this presentation, but you can find this in our investor slide deck on our homepage. They have all the detailed price developments, and you can see that recently there's still a downward trend in market prices. And another factor also contributing to that compared then to you is the weakness of the U.S. dollar, which is also a bearish factor. So for sugar marketing years 2025/26 and 2026/27, it is expected that the market is in a surplus. so for sugar marketing years 2025/26 and 2026/27 it is expected that the market is in a surplus That means production going over consumption. that means production going over consumption And in a commodity market, this is leading to a bearish sentiment on the prices. and in a commodity market this is leading to a bearish sentiment on the prices This is also, if you have a look on the sugar market prices. this is also if you have a look on the sugar market prices We do not have this in this presentation, but you can find this in our investor slide deck on our homepage. we do not have this in this presentation but you can find this in our investor slide deck on our homepage They have all the detailed price developments, and you can see that recently there's still a downward trend in market prices. they have all the detailed price developments and you can see that recently there's still a downward trend in market prices And another factor also contributing to that compared then to you is the weakness of the U.S. dollar, which is also a bearish factor. and another factor also contributing to that compared then to you is the weakness of the u.s dollar which is also a bearish factor So going from the global sugar market, coming to the European sugar market. So as a mid-summary, we can state that from the world market, we do not have a support. The contrary is true, so there's a bearish sentiment for sugar on the world market, and this translates also to the situation in Europe, so here also the graph, you can see the dark blue is the productions and the normal blue is the consumption. When it comes to consumption in Europe, you can see that there is. It depends whether you start looking into the figure 2022/2023. If you take this, you can see that it's rather stable consumption in Europe. So going from the global sugar market, coming to the European sugar market. so going from the global sugar market coming to the european sugar market So as a mid-summary, we can state that from the world market, we do not have a support. so as a mid-summary we can state that from the world market we do not have a support The contrary is true, so there's a bearish sentiment for sugar on the world market, and this translates also to the situation in Europe, so here also the graph, you can see the dark blue is the productions and the normal blue is the consumption. the contrary is true so there's a bearish sentiment for sugar on the world market and this translates also to the situation in europe so here also the graph you can see the dark blue is the productions and the normal blue is the consumption When it comes to consumption in Europe, you can see that there is. when it comes to consumption in europe you can see that there is It depends whether you start looking into the figure 2022/2023. it depends whether you start looking into the figure 2022/2023 If you take this, you can see that it's rather stable consumption in Europe. if you take this you can see that it's rather stable consumption in europe If we take also into consideration 2021/2022 as a starting point, we can also come to the conclusion that the European market is rather in a slightly downward trend. So going into the details, for the recently started sugar marketing year 2025/26, which started 1st of October 2025, the European Commission and also the analysts from market survey expect a significant decline in cultivation area for Europe, so less acres with sugar beets. So based on this production, including isoglucose, is forecasted to decrease to 15.9 million tons. That's the graph or the bars on the right-hand side in the graph. And as a result, the EU is expected to have a balance in export-import volumes. If we take also into consideration 2021/2022 as a starting point, we can also come to the conclusion that the European market is rather in a slightly downward trend. if we take also into consideration 2021/2022 as a starting point we can also come to the conclusion that the european market is rather in a slightly downward trend So going into the details, for the recently started sugar marketing year 2025/26, which started 1st of October 2025, the European Commission and also the analysts from market survey expect a significant decline in cultivation area for Europe, so less acres with sugar beets. so going into the details for the recently started sugar marketing year 2025/26 which started 1st of october 2025 the european commission and also the analysts from market survey expect a significant decline in cultivation area for europe so less acres with sugar beets So based on this production, including isoglucose, is forecasted to decrease to 15.9 million tons. so based on this production including isoglucose is forecasted to decrease to 15.9 million tons That's the graph or the bars on the right-hand side in the graph. that's the graph or the bars on the right-hand side in the graph And as a result, the EU is expected to have a balance in export-import volumes. and as a result the eu is expected to have a balance in export-import volumes The sugar price, let's have a look on the sugar prices, but it's not on the graph, but let me explain to you the development for the sugar prices. So the sugar prices, which have been published by the European Commission, fell significantly down from 619 EUR per ton at the start of the 2024/25 sugar marketing year in October 2024 sharply. And since it has continued to fall, reaching EUR 550 per ton at the start of the 2025/2026 fiscal in March 2025 and in July 2025. So this is the latest available publication, EU sugar prices to that EUR 534 per ton. So one aspect that we always have to put into consideration when we discuss sugar prices in Europe is what is happening with Ukraine. The sugar price, let's have a look on the sugar prices, but it's not on the graph, but let me explain to you the development for the sugar prices. the sugar price let's have a look on the sugar prices but it's not on the graph but let me explain to you the development for the sugar prices So the sugar prices, which have been published by the European Commission, fell significantly down from 619 EUR per ton at the start of the 2024/25 sugar marketing year in October 2024 sharply. so the sugar prices which have been published by the european commission fell significantly down from 619 eur per ton at the start of the 2024/25 sugar marketing year in october 2024 sharply And since it has continued to fall, reaching EUR 550 per ton at the start of the 2025/2026 fiscal in March 2025 and in July 2025. and since it has continued to fall reaching eur 550 per ton at the start of the 2025/2026 fiscal in march 2025 and in july 2025 So this is the latest available publication, EU sugar prices to that EUR 534 per ton. so this is the latest available publication eu sugar prices to that eur 534 per ton So one aspect that we always have to put into consideration when we discuss sugar prices in Europe is what is happening with Ukraine. so one aspect that we always have to put into consideration when we discuss sugar prices in europe is what is happening with ukraine As we stated in the last conference calls, one factor which heavily weighed on European sugar prices was the Ukraine imports over the last years and months. So at current state, the EU-Ukraine association agreement foresees that the allowed import or the duty-free allowed imports into the EU amount to 20,000 tons for this year, pro rata temporis. But the ongoing discussion is to increase those volumes to 100,000 tons as of 1st of January next year. So for sure, we stand with Ukraine, but we heavily oppose to those additional duty-free imports given the fact that the European market is well supplied, so after having had this macro look on the world sugar market development, the European market development, how does this translate to the Südzucker Group Sugar segment? As we stated in the last conference calls, one factor which heavily weighed on European sugar prices was the Ukraine imports over the last years and months. as we stated in the last conference calls one factor which heavily weighed on european sugar prices was the ukraine imports over the last years and months So at current state, the EU-Ukraine association agreement foresees that the allowed import or the duty-free allowed imports into the EU amount to 20,000 tons for this year, pro rata temporis. so at current state the eu-ukraine association agreement foresees that the allowed import or the duty-free allowed imports into the eu amount to 20,000 tons for this year pro rata temporis But the ongoing discussion is to increase those volumes to 100,000 tons as of 1st of January next year. but the ongoing discussion is to increase those volumes to 100,000 tons as of 1st of january next year So for sure, we stand with Ukraine, but we heavily oppose to those additional duty-free imports given the fact that the European market is well supplied, so after having had this macro look on the world sugar market development, the European market development, how does this translate to the Südzucker Group Sugar segment? so for sure we stand with ukraine but we heavily oppose to those additional duty-free imports given the fact that the european market is well supplied so after having had this macro look on the world sugar market development the european market development how does this translate to the südzucker group sugar segment You can see in the graph on the right-hand side that the revenues significantly decreased, so in H1 2024/2025, we stood at EUR 2.1 billion in turnover. This has decreased to EUR 1.4 billion, and when it comes to operating profit, it even turned to a loss situation, so in H1 2024/2025, we stood as an operating profit for the group, for the Südzucker segment at EUR 72 million, and this has turned to a loss situation of EUR 89 million operating loss. Let's continue with the special product segment on page 13. You can see in the graph on the right-hand side that the revenues significantly decreased, so in H1 2024/2025, we stood at EUR 2.1 billion in turnover. you can see in the graph on the right-hand side that the revenues significantly decreased so in h1 2024/2025 we stood at eur 2.1 billion in turnover This has decreased to EUR 1.4 billion, and when it comes to operating profit, it even turned to a loss situation, so in H1 2024/2025, we stood as an operating profit for the group, for the Südzucker segment at EUR 72 million, and this has turned to a loss situation of EUR 89 million operating loss. this has decreased to eur 1.4 billion and when it comes to operating profit it even turned to a loss situation so in h1 2024/2025 we stood as an operating profit for the group for the südzucker segment at eur 72 million and this has turned to a loss situation of eur 89 million operating loss Let's continue with the special product segment on page 13. let's continue with the special product segment on page 13 Here you can see that after six months, revenue in the special product segment decreased moderately, which is mainly due to the disposal of the dressing and sauces business in the U.S. from Division Freiberger, which was executed in Q2 2024/25, so all in all, revenues declined moderately from EUR 1.14 billion to EUR 1.1 billion in H1 2025/26. Coming to operating profit, we also do see a decrease. You can see from 108 to 71, so the operating profit decreased significantly to EUR 71 million in the first half of this fiscal, and this development is mainly due to the rising production costs that we see in these divisions, which could not fully be passed on to customers. Here you can see that after six months, revenue in the special product segment decreased moderately, which is mainly due to the disposal of the dressing and sauces business in the U.S. from Division Freiberger, which was executed in Q2 2024/25, so all in all, revenues declined moderately from EUR 1.14 billion to EUR 1.1 billion in H1 2025/26. here you can see that after six months revenue in the special product segment decreased moderately which is mainly due to the disposal of the dressing and sauces business in the u.s from division freiberger which was executed in q2 2024/25 so all in all revenues declined moderately from eur 1.14 billion to eur 1.1 billion in h1 2025/26 Coming to operating profit, we also do see a decrease. coming to operating profit we also do see a decrease You can see from 108 to 71, so the operating profit decreased significantly to EUR 71 million in the first half of this fiscal, and this development is mainly due to the rising production costs that we see in these divisions, which could not fully be passed on to customers. you can see from 108 to 71 so the operating profit decreased significantly to eur 71 million in the first half of this fiscal and this development is mainly due to the rising production costs that we see in these divisions which could not fully be passed on to customers Going forward on page 14, here you can see the development of CropEnergies segment, so the ethanol business. You can see also, let me start with the key figures on the right-hand side. You can see that revenues were down from 484 million EUR in H1 2024/25 to 402 in this H1 of the current fiscal. And operating profit also turned to the negative from 17 million EUR in H1 2024/25 to a minus 13 operating loss in the CropEnergies segment in 2025/26. And the main reason for development in revenues is a decrease in production. So it's not linked to the market development, ethanol market, or the need, or the development for biofuels is still pretty stable in the US, sorry, in the EU. The development of CropEnergies here and on the revenue side was linked to internal reasons. Going forward on page 14, here you can see the development of CropEnergies segment, so the ethanol business. going forward on page 14 here you can see the development of cropenergies segment so the ethanol business You can see also, let me start with the key figures on the right-hand side. you can see also let me start with the key figures on the right-hand side You can see that revenues were down from 484 million EUR in H1 2024/25 to 402 in this H1 of the current fiscal. you can see that revenues were down from 484 million eur in h1 2024/25 to 402 in this h1 of the current fiscal And operating profit also turned to the negative from 17 million EUR in H1 2024/25 to a minus 13 operating loss in the CropEnergies segment in 2025/26. and operating profit also turned to the negative from 17 million eur in h1 2024/25 to a minus 13 operating loss in the cropenergies segment in 2025/26 And the main reason for development in revenues is a decrease in production. and the main reason for development in revenues is a decrease in production So it's not linked to the market development, ethanol market, or the need, or the development for biofuels is still pretty stable in the US, sorry, in the EU. so it's not linked to the market development ethanol market or the need or the development for biofuels is still pretty stable in the us sorry in the eu The development of CropEnergies here and on the revenue side was linked to internal reasons. the development of cropenergies here and on the revenue side was linked to internal reasons So the decrease is primarily due to significantly lower sales volumes, mainly resulted from both scheduled and also unscheduled maintenance work carried out due to technical issues. When it comes to the operating profit, so as I said, it turned to a negative, and this was significant. That was due to significantly lower prices in the first half, but we will see when we discuss the outlook further on. We always state that ethanol prices are volatile. There are good reasons given supply-demand in Europe. There are good reasons that prices should increase. So the decrease is primarily due to significantly lower sales volumes, mainly resulted from both scheduled and also unscheduled maintenance work carried out due to technical issues. so the decrease is primarily due to significantly lower sales volumes mainly resulted from both scheduled and also unscheduled maintenance work carried out due to technical issues When it comes to the operating profit, so as I said, it turned to a negative, and this was significant. when it comes to the operating profit so as i said it turned to a negative and this was significant That was due to significantly lower prices in the first half, but we will see when we discuss the outlook further on. that was due to significantly lower prices in the first half but we will see when we discuss the outlook further on We always state that ethanol prices are volatile. we always state that ethanol prices are volatile There are good reasons given supply-demand in Europe. there are good reasons given supply-demand in europe There are good reasons that prices should increase. there are good reasons that prices should increase That's what we also stated in the quarterly calls we had in prior periods and we did see this increase finally in the last 10 days, yeah, or I would say last week, so in the last days, ethanol prices have increased significantly in Europe, so this is a positive sign, and this also is reflected in our forecasts, which I will discuss at the end of this presentation, so let's move on to the Starch segment. This is on page 15. That's what we also stated in the quarterly calls we had in prior periods and we did see this increase finally in the last 10 days, yeah, or I would say last week, so in the last days, ethanol prices have increased significantly in Europe, so this is a positive sign, and this also is reflected in our forecasts, which I will discuss at the end of this presentation, so let's move on to the Starch segment. that's what we also stated in the quarterly calls we had in prior periods and we did see this increase finally in the last 10 days yeah or i would say last week so in the last days ethanol prices have increased significantly in europe so this is a positive sign and this also is reflected in our forecasts which i will discuss at the end of this presentation so let's move on to the starch segment This is on page 15. this is on page 15 You can see also on the right-hand side that after six months, revenues in the Starch segment declined moderately from EUR 505 million to EUR 474 million in six months of this fiscal, and this was due to the overall decline in prices and volumes. Operating result is significantly below previous year's levels. You can see that it turned downward from EUR 20 million in H1 last year to a EUR 5 million this year. On the positive side, in this reporting period, we benefited from an insurance compensation related to the flood damage at the Austrian plant in Pischelsdorf, which we discussed also in recent quarterly calls with you. Let's move on to the food segment, and as I said, this is really positive to note with the Südzucker Group having a robust and resilient portfolio. You can see also on the right-hand side that after six months, revenues in the Starch segment declined moderately from EUR 505 million to EUR 474 million in six months of this fiscal, and this was due to the overall decline in prices and volumes. you can see also on the right-hand side that after six months revenues in the starch segment declined moderately from eur 505 million to eur 474 million in six months of this fiscal and this was due to the overall decline in prices and volumes Operating result is significantly below previous year's levels. operating result is significantly below previous year's levels You can see that it turned downward from EUR 20 million in H1 last year to a EUR 5 million this year. you can see that it turned downward from eur 20 million in h1 last year to a eur 5 million this year On the positive side, in this reporting period, we benefited from an insurance compensation related to the flood damage at the Austrian plant in Pischelsdorf, which we discussed also in recent quarterly calls with you. on the positive side in this reporting period we benefited from an insurance compensation related to the flood damage at the austrian plant in pischelsdorf which we discussed also in recent quarterly calls with you Let's move on to the food segment, and as I said, this is really positive to note with the Südzucker Group having a robust and resilient portfolio. let's move on to the food segment and as i said this is really positive to note with the südzucker group having a robust and resilient portfolio You can see that the development in the food segment is positive compared to prior years, H1. We do see an increase in revenues from EUR 824 million last year to EUR 858 million this year. And the operating result also came in above prior years, reaching EUR 68 million. I always mix figures sometimes, yeah? So 68 million, you can see in the middle of the right-hand side, 68 million, positive. So let's move on to the remainder of the income statement after having had this look on the segments, development, operating profit. So in income statement, you can see that after six months, below operating profit, the result from restructuring and special items amounted to a minus EUR 33 million versus a plus of EUR 30 million. This was largely attributable to the Sugar segment in addition to the special product segment. You can see that the development in the food segment is positive compared to prior years, H1. you can see that the development in the food segment is positive compared to prior years h1 We do see an increase in revenues from EUR 824 million last year to EUR 858 million this year. we do see an increase in revenues from eur 824 million last year to eur 858 million this year And the operating result also came in above prior years, reaching EUR 68 million. and the operating result also came in above prior years reaching eur 68 million I always mix figures sometimes, yeah? i always mix figures sometimes yeah So 68 million, you can see in the middle of the right-hand side, 68 million, positive. so 68 million you can see in the middle of the right-hand side 68 million positive So let's move on to the remainder of the income statement after having had this look on the segments, development, operating profit. so let's move on to the remainder of the income statement after having had this look on the segments development operating profit So in income statement, you can see that after six months, below operating profit, the result from restructuring and special items amounted to a minus EUR 33 million versus a plus of EUR 30 million. so in income statement you can see that after six months below operating profit the result from restructuring and special items amounted to a minus eur 33 million versus a plus of eur 30 million This was largely attributable to the Sugar segment in addition to the special product segment. this was largely attributable to the sugar segment in addition to the special product segment When it comes to the result from companies consolidated at equity, this also amounted to minus EUR 8 and is alongside the Starch segment and the Sugar segment. Looking into the final financial result, you see a minus EUR 70, which is also higher than last year where we had stood in the financial result at a minus EUR 51 million. So what are the reasons for that? There we have to look at different look on both the pure financial interest side and the other financial interest side. When it comes to the pure financial side, when it comes to the interest side, here we can see that here is a minus EUR 53 million, and this is linked to higher interest expense, which is due to an average increase in interest rates. When it comes to the result from companies consolidated at equity, this also amounted to minus EUR 8 and is alongside the Starch segment and the Sugar segment. when it comes to the result from companies consolidated at equity this also amounted to minus eur 8 and is alongside the starch segment and the sugar segment Looking into the final financial result, you see a minus EUR 70, which is also higher than last year where we had stood in the financial result at a minus EUR 51 million. looking into the final financial result you see a minus eur 70 which is also higher than last year where we had stood in the financial result at a minus eur 51 million So what are the reasons for that? so what are the reasons for that There we have to look at different look on both the pure financial interest side and the other financial interest side. there we have to look at different look on both the pure financial interest side and the other financial interest side When it comes to the pure financial side, when it comes to the interest side, here we can see that here is a minus EUR 53 million, and this is linked to higher interest expense, which is due to an average increase in interest rates. when it comes to the pure financial side when it comes to the interest side here we can see that here is a minus eur 53 million and this is linked to higher interest expense which is due to an average increase in interest rates So for this reporting period, we have an average interest rate of 3.7% compared to a 3.4% in the prior year's period. Net financial debt on average in this period was roughly stable at EUR 1.9 billion-EUR 2 billion. And when it comes to the other financial results, this is mainly attributable to exchange rate losses, which are linked to the weak US dollar and the weak British pound. Moving on to the taxes, you can find that on page 19. So taxes on income in H1 came in with a plus of EUR 9 million compared to a minus of EUR 74 million euro in the same period of last year. And this is based on earnings before taxes of minus EUR 69 million euro in the current year versus a EUR 235 million euro in the first six months of 2024/25 fiscal. So for this reporting period, we have an average interest rate of 3.7% compared to a 3.4% in the prior year's period. so for this reporting period we have an average interest rate of 3.7% compared to a 3.4% in the prior year's period Net financial debt on average in this period was roughly stable at EUR 1.9 billion-EUR 2 billion. net financial debt on average in this period was roughly stable at eur 1.9 billion-eur 2 billion And when it comes to the other financial results, this is mainly attributable to exchange rate losses, which are linked to the weak US dollar and the weak British pound. and when it comes to the other financial results this is mainly attributable to exchange rate losses which are linked to the weak us dollar and the weak british pound Moving on to the taxes, you can find that on page 19. moving on to the taxes you can find that on page 19 So taxes on income in H1 came in with a plus of EUR 9 million compared to a minus of EUR 74 million euro in the same period of last year. so taxes on income in h1 came in with a plus of eur 9 million compared to a minus of eur 74 million euro in the same period of last year And this is based on earnings before taxes of minus EUR 69 million euro in the current year versus a EUR 235 million euro in the first six months of 2024/25 fiscal. and this is based on earnings before taxes of minus eur 69 million euro in the current year versus a eur 235 million euro in the first six months of 2024/25 fiscal So finally, looking to earnings per share, not a positive figure and clearly disappointing for us. Earnings per share at the end came in at −EUR 0.38 against +EUR 0.61 in the prior year's period. Let's have a short look on cash flow, working capital investment. You can find that on the following pages. So I start with cash flow on page 21. You can see in the graph or in the table that due to the decline in operating result, cash flow also decreased in the reporting period now to EUR 67 million compared to EUR 343 million in prior year's period. We do see a decrease in working capital, which is positive. On the investment side, CapEx side, investment into fixed assets reached EUR 219 million. So we are on track with reducing CapEx. So finally, looking to earnings per share, not a positive figure and clearly disappointing for us. so finally looking to earnings per share not a positive figure and clearly disappointing for us Earnings per share at the end came in at −EUR 0.38 against +EUR 0.61 in the prior year's period. earnings per share at the end came in at −eur 0.38 against +eur 0.61 in the prior year's period Let's have a short look on cash flow, working capital investment. let's have a short look on cash flow working capital investment You can find that on the following pages. you can find that on the following pages So I start with cash flow on page 21. so i start with cash flow on page 21 You can see in the graph or in the table that due to the decline in operating result, cash flow also decreased in the reporting period now to EUR 67 million compared to EUR 343 million in prior year's period. you can see in the graph or in the table that due to the decline in operating result cash flow also decreased in the reporting period now to eur 67 million compared to eur 343 million in prior year's period We do see a decrease in working capital, which is positive. we do see a decrease in working capital which is positive On the investment side, CapEx side, investment into fixed assets reached EUR 219 million. on the investment side capex side investment into fixed assets reached eur 219 million So we are on track with reducing CapEx. so we are on track with reducing capex Investment in financial assets and acquisitions are not meaningful in size. When it comes to the financing activities, so Südzucker had been very successful in refinancing our debt position. Here you can see I have a particular link on the new EUR 700 million hybrid bond, which we issued successfully in May 2025. This is reflected also. You can see that in the cash flow statement. We issued a new EUR 700 million hybrid bond via our Dutch subsidiary, Südzucker International Finance. We financed the existing hybrid bond, which was also worth EUR 700 million, which was issued in summer 2005. The increase and decrease in stakes held in subsidiaries and capital buyback are linked to this transaction. We move on to the balance sheet, which you can find on page 23. Investment in financial assets and acquisitions are not meaningful in size. investment in financial assets and acquisitions are not meaningful in size When it comes to the financing activities, so Südzucker had been very successful in refinancing our debt position. when it comes to the financing activities so südzucker had been very successful in refinancing our debt position Here you can see I have a particular link on the new EUR 700 million hybrid bond, which we issued successfully in May 2025. here you can see i have a particular link on the new eur 700 million hybrid bond which we issued successfully in may 2025 This is reflected also. this is reflected also You can see that in the cash flow statement. you can see that in the cash flow statement We issued a new EUR 700 million hybrid bond via our Dutch subsidiary, Südzucker International Finance. we issued a new eur 700 million hybrid bond via our dutch subsidiary südzucker international finance We financed the existing hybrid bond, which was also worth EUR 700 million, which was issued in summer 2005. we financed the existing hybrid bond which was also worth eur 700 million which was issued in summer 2005 The increase and decrease in stakes held in subsidiaries and capital buyback are linked to this transaction. the increase and decrease in stakes held in subsidiaries and capital buyback are linked to this transaction We move on to the balance sheet, which you can find on page 23. we move on to the balance sheet which you can find on page 23 So when it comes to net financial debt, by end of August 2025, net financial debt stands at EUR 1.674 billion. The cash inflow from operating activities of EUR 255 million includes in particular the cash flow of EUR 67 million and a strong decrease in working capital. And as I said, investments into CapEx amounted to EUR 219 million. So in total, the net financial debt is rather stable compared to the EUR 1.654 billion where net financial debt stood at the end of last fiscal 29 of February, 28 February 2025. Equity ratio is still solid. So we stand with an equity ratio of 45%. So this is a solid level. Let me now turn to the outlook, which you can find on page 25-26. So unfortunately, we had to revise downwards our operating profit guidance for the group on August 21. So when it comes to net financial debt, by end of August 2025, net financial debt stands at EUR 1.674 billion. so when it comes to net financial debt by end of august 2025 net financial debt stands at eur 1.674 billion The cash inflow from operating activities of EUR 255 million includes in particular the cash flow of EUR 67 million and a strong decrease in working capital. the cash inflow from operating activities of eur 255 million includes in particular the cash flow of eur 67 million and a strong decrease in working capital And as I said, investments into CapEx amounted to EUR 219 million. and as i said investments into capex amounted to eur 219 million So in total, the net financial debt is rather stable compared to the EUR 1.654 billion where net financial debt stood at the end of last fiscal 29 of February, 28 February 2025. so in total the net financial debt is rather stable compared to the eur 1.654 billion where net financial debt stood at the end of last fiscal 29 of february 28 february 2025 Equity ratio is still solid. equity ratio is still solid So we stand with an equity ratio of 45%. so we stand with an equity ratio of 45% So this is a solid level. so this is a solid level Let me now turn to the outlook, which you can find on page 25-26. let me now turn to the outlook which you can find on page 25-26 So unfortunately, we had to revise downwards our operating profit guidance for the group on August 21. so unfortunately we had to revise downwards our operating profit guidance for the group on august 21 That was the MIR guidance that you have seen. So on August 21st, we updated the group guidance for the full fiscal 2025 or 2026, and we expect the group revenues to come in between EUR 8.3 billion and EUR 8.7 billion. That's in the middle of the graph down. And operating result to reach between EUR 100 million and EUR 200 million. This compares to our previous guidance of EUR 150-300 million. So it's a downward review of our forecast, which we had to do on August 21st. But we do confirm this number as of today. So what has changed compared to our previous guidance before going into the details? So overall, it is unchanged now for the group. But we do see a decrease in the Sugar segment. So the Sugar segment is updated. We have not changed the outlook for Special Products and starch. That was the MIR guidance that you have seen. that was the mir guidance that you have seen So on August 21st, we updated the group guidance for the full fiscal 2025 or 2026, and we expect the group revenues to come in between EUR 8.3 billion and EUR 8.7 billion. so on august 21st we updated the group guidance for the full fiscal 2025 or 2026 and we expect the group revenues to come in between eur 8.3 billion and eur 8.7 billion That's in the middle of the graph down. that's in the middle of the graph down And operating result to reach between EUR 100 million and EUR 200 million. and operating result to reach between eur 100 million and eur 200 million This compares to our previous guidance of EUR 150-300 million. this compares to our previous guidance of eur 150-300 million So it's a downward review of our forecast, which we had to do on August 21st. so it's a downward review of our forecast which we had to do on august 21st But we do confirm this number as of today. but we do confirm this number as of today So what has changed compared to our previous guidance before going into the details? so what has changed compared to our previous guidance before going into the details So overall, it is unchanged now for the group. so overall it is unchanged now for the group But we do see a decrease in the Sugar segment. but we do see a decrease in the sugar segment So the Sugar segment is updated. so the sugar segment is updated We have not changed the outlook for Special Products and starch. we have not changed the outlook for special products and starch We do see right now a slightly better improvement in CropEnergies, and we do see a better development in food. So this is also linked to what I've already stated. So it's a robust portfolio, and we have different developments in the different segments. So coming to sugar, for the Sugar segment, operating result is now seen in a range from minus EUR 150 million to minus EUR 250 million. Our previous forecast was between minus 100 to minus 200. So there's an additional burden to be seen given the bearish sentiment on non-prices, which I've just explained, of EUR 50 million in Sugar segment. Special products segment unchanged. We currently expect the operating result to decline significantly due to the anticipated rise in cost, which I already explained. For CropEnergies, the development is as the following. So in the segment of CropEnergies, we expect significantly weaker revenues. We do see right now a slightly better improvement in CropEnergies, and we do see a better development in food. we do see right now a slightly better improvement in cropenergies and we do see a better development in food So this is also linked to what I've already stated. so this is also linked to what i've already stated So it's a robust portfolio, and we have different developments in the different segments. so it's a robust portfolio and we have different developments in the different segments So coming to sugar, for the Sugar segment, operating result is now seen in a range from minus EUR 150 million to minus EUR 250 million. so coming to sugar for the sugar segment operating result is now seen in a range from minus eur 150 million to minus eur 250 million Our previous forecast was between minus 100 to minus 200. our previous forecast was between minus 100 to minus 200 So there's an additional burden to be seen given the bearish sentiment on non-prices, which I've just explained, of EUR 50 million in Sugar segment. so there's an additional burden to be seen given the bearish sentiment on non-prices which i've just explained of eur 50 million in sugar segment Special products segment unchanged. special products segment unchanged We currently expect the operating result to decline significantly due to the anticipated rise in cost, which I already explained. we currently expect the operating result to decline significantly due to the anticipated rise in cost which i already explained For CropEnergies, the development is as the following. for cropenergies the development is as the following So in the segment of CropEnergies, we expect significantly weaker revenues. so in the segment of cropenergies we expect significantly weaker revenues This is due to lower average ethanol prices compared to the previous year, as well as technical issues, as just explained, following the scheduled and unscheduled maintenance. At the same time, net raw material costs have gone down compared to previous year. And what is positively to note, ethanol prices in the European market, they have just recently started to rise again, which is positive. All in all, we expect the operating result for CropEnergies segment to be on the same level as last year. Already stated for Starch segment, no change. And for the food segment, following an already very successful 2024/25 fiscal, we now expect a slightly improved operating result compared to the previous year, as moderately increased prices are helping to offset the impact of rising costs. So all in all, our group guidance is unchanged compared to the downward revision on August 21st. This is due to lower average ethanol prices compared to the previous year, as well as technical issues, as just explained, following the scheduled and unscheduled maintenance. this is due to lower average ethanol prices compared to the previous year as well as technical issues as just explained following the scheduled and unscheduled maintenance At the same time, net raw material costs have gone down compared to previous year. at the same time net raw material costs have gone down compared to previous year And what is positively to note, ethanol prices in the European market, they have just recently started to rise again, which is positive. and what is positively to note ethanol prices in the european market they have just recently started to rise again which is positive All in all, we expect the operating result for CropEnergies segment to be on the same level as last year. all in all we expect the operating result for cropenergies segment to be on the same level as last year Already stated for Starch segment, no change. already stated for starch segment no change And for the food segment, following an already very successful 2024/25 fiscal, we now expect a slightly improved operating result compared to the previous year, as moderately increased prices are helping to offset the impact of rising costs. and for the food segment following an already very successful 2024/25 fiscal we now expect a slightly improved operating result compared to the previous year as moderately increased prices are helping to offset the impact of rising costs So all in all, our group guidance is unchanged compared to the downward revision on August 21st. so all in all our group guidance is unchanged compared to the downward revision on august 21st And we do see group revenues in the range of operating profit between EUR 100 million and EUR 200 million. Looking at the other KPIs for our forecast, you find that on page 26. So for group EBITDA, the range is expected to come in between EUR 470 million and EUR 570 million, with the explanations completely true for, as I just stated, in operating profit. Depreciation is expected to be on previous year's levels. CapEx is expected to remain below prior year's level. And when it comes to Net Financial Debt, we do project Net Financial Debt to remain rather stable compared to the end of last fiscal. And we do see group revenues in the range of operating profit between EUR 100 million and EUR 200 million. and we do see group revenues in the range of operating profit between eur 100 million and eur 200 million Looking at the other KPIs for our forecast, you find that on page 26. looking at the other kpis for our forecast you find that on page 26 So for group EBITDA, the range is expected to come in between EUR 470 million and EUR 570 million, with the explanations completely true for, as I just stated, in operating profit. so for group ebitda the range is expected to come in between eur 470 million and eur 570 million with the explanations completely true for as i just stated in operating profit Depreciation is expected to be on previous year's levels. depreciation is expected to be on previous year's levels CapEx is expected to remain below prior year's level. capex is expected to remain below prior year's level And when it comes to Net Financial Debt, we do project Net Financial Debt to remain rather stable compared to the end of last fiscal. and when it comes to net financial debt we do project net financial debt to remain rather stable compared to the end of last fiscal So ladies and gentlemen, after this review of our H1 figures and the forecast, so as a summary before closing and coming to the Q&A, I would like to comment that, as expected, the challenging market environment in our core Sugar segment has continued in the second quarter of this fiscal. Market prices started to improve, but not as much as anticipated. Our non-sugar business continued to be a stabilizing factor. But as a consequence, we had to revise downwards our operating profit forecast for this year in August 2025, but we do confirm this outlook, as just explained, as of today. When it comes to financing, we are very proud that we have successfully issued this EUR 700 million bond in May, and now we successfully completed our refinancing activities. There is a EUR 500 million senior bond, also successfully issued in January 2025. So ladies and gentlemen, after this review of our H1 figures and the forecast, so as a summary before closing and coming to the Q&A, I would like to comment that, as expected, the challenging market environment in our core Sugar segment has continued in the second quarter of this fiscal. so ladies and gentlemen after this review of our h1 figures and the forecast so as a summary before closing and coming to the q&a i would like to comment that as expected the challenging market environment in our core sugar segment has continued in the second quarter of this fiscal Market prices started to improve, but not as much as anticipated. market prices started to improve but not as much as anticipated Our non-sugar business continued to be a stabilizing factor. our non-sugar business continued to be a stabilizing factor But as a consequence, we had to revise downwards our operating profit forecast for this year in August 2025, but we do confirm this outlook, as just explained, as of today. but as a consequence we had to revise downwards our operating profit forecast for this year in august 2025 but we do confirm this outlook as just explained as of today When it comes to financing, we are very proud that we have successfully issued this EUR 700 million bond in May, and now we successfully completed our refinancing activities. when it comes to financing we are very proud that we have successfully issued this eur 700 million bond in may and now we successfully completed our refinancing activities There is a EUR 500 million senior bond, also successfully issued in January 2025. there is a eur 500 million senior bond also successfully issued in january 2025 And this covers the refinancing of the senior bond maturing end of November 2025. Together with the extended and increased to EUR 800 million syndicated loan, we have established a solid and reliable financing structure for the years ahead. And as I said, I'm very proud of Südzucker and the entire Südzucker finance team who achieved this refinancing over the last months. Also, what is new, but also already communicated for Südzucker board since October 1st, we have Theresa von Fugler on board. We are very happy to have her here with her expertise. And also here, from my side and from the entire team, a very warm welcome to her. We are very much looking forward to her with her to further work on the success of our Südzucker Group. And a very warm welcome to Theresa. So thank you very much to all of you. And this covers the refinancing of the senior bond maturing end of November 2025. and this covers the refinancing of the senior bond maturing end of november 2025 Together with the extended and increased to EUR 800 million syndicated loan, we have established a solid and reliable financing structure for the years ahead. together with the extended and increased to eur 800 million syndicated loan we have established a solid and reliable financing structure for the years ahead And as I said, I'm very proud of Südzucker and the entire Südzucker finance team who achieved this refinancing over the last months. and as i said i'm very proud of südzucker and the entire südzucker finance team who achieved this refinancing over the last months Also, what is new, but also already communicated for Südzucker board since October 1st, we have Theresa von Fugler on board. also what is new but also already communicated for südzucker board since october 1st we have theresa von fugler on board We are very happy to have her here with her expertise. we are very happy to have her here with her expertise And also here, from my side and from the entire team, a very warm welcome to her. and also here from my side and from the entire team a very warm welcome to her We are very much looking forward to her with her to further work on the success of our Südzucker Group. we are very much looking forward to her with her to further work on the success of our südzucker group And a very warm welcome to Theresa. and a very warm welcome to theresa So thank you very much to all of you. so thank you very much to all of you So far, we are now happy to take your questions. And together with Andreas, I'm happy to give the answers that you might have to these figures. Thank you very much so far. So far, we are now happy to take your questions. so far we are now happy to take your questions And together with Andreas, I'm happy to give the answers that you might have to these figures. and together with andreas i'm happy to give the answers that you might have to these figures Thank you very much so far. thank you very much so far

Speaker 4: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. Anyone who has a question may press star and one at this time. The first question comes from the line of Karine Elias from Barclays. Please go ahead. We will now begin the question and answer session. we will now begin the question and answer session Anyone who wishes to ask a question may press star and one on their telephone. anyone who wishes to ask a question may press star and one on their telephone You will hear a tone to confirm that you have entered the queue. you will hear a tone to confirm that you have entered the queue If you wish to remove yourself from the question queue, you may press star and two. if you wish to remove yourself from the question queue you may press star and two Questioners on the phone are requested to disable the loudspeaker mode while asking a question. questioners on the phone are requested to disable the loudspeaker mode while asking a question Anyone who has a question may press star and one at this time. anyone who has a question may press star and one at this time The first question comes from the line of Karine Elias from Barclays. the first question comes from the line of karine elias from barclays Please go ahead. please go ahead

Speaker 5: Hi, thanks for the presentation, and thanks for taking my questions. I just wanted to go back to your point on the guidance. So just trying to look at the implied guidance for the second half. Does it imply that the price for sugar or the contracted price for sugar would be probably that the crown would be about more than about EUR 100 per ton? In the recent contracting, any cut of that would be very useful, especially as we think about the start of 2027. And then just going back to your point on the net debt, your leverage obviously is picked up, that's partially because of the lower EBITDA. What type of leverage are you comfortable staying in and how long, especially as you think about potential actions from the reaction? Thank you. Hi, thanks for the presentation, and thanks for taking my questions. hi thanks for the presentation and thanks for taking my questions I just wanted to go back to your point on the guidance. i just wanted to go back to your point on the guidance So just trying to look at the implied guidance for the second half. so just trying to look at the implied guidance for the second half Does it imply that the price for sugar or the contracted price for sugar would be probably that the crown would be about more than about EUR 100 per ton? does it imply that the price for sugar or the contracted price for sugar would be probably that the crown would be about more than about eur 100 per ton In the recent contracting, any cut of that would be very useful, especially as we think about the start of 2027. in the recent contracting any cut of that would be very useful especially as we think about the start of 2027 And then just going back to your point on the net debt, your leverage obviously is picked up, that's partially because of the lower EBITDA. and then just going back to your point on the net debt your leverage obviously is picked up that's partially because of the lower ebitda What type of leverage are you comfortable staying in and how long, especially as you think about potential actions from the reaction? what type of leverage are you comfortable staying in and how long especially as you think about potential actions from the reaction Thank you. thank you

Speaker 2: Thank you, Karine, for your questions. When it comes to sugar prices, I cannot disclose our individual prices. So sugar prices in our market is competition-sensitive information. So what I can comment is available market data and just very broadly expectations. What we did say at the beginning of this fiscal, when we put up our budget, we stated that when it comes to the sugar availability in Europe, we did foresee a decline. And this decline that we had foreseen was linked to the fact that we, on our side, decreased the acreage significantly by roughly 15%. Thank you, Karine, for your questions. thank you karine for your questions When it comes to sugar prices, I cannot disclose our individual prices. when it comes to sugar prices i cannot disclose our individual prices So sugar prices in our market is competition-sensitive information. so sugar prices in our market is competition-sensitive information So what I can comment is available market data and just very broadly expectations. so what i can comment is available market data and just very broadly expectations What we did say at the beginning of this fiscal, when we put up our budget, we stated that when it comes to the sugar availability in Europe, we did foresee a decline. what we did say at the beginning of this fiscal when we put up our budget we stated that when it comes to the sugar availability in europe we did foresee a decline And this decline that we had foreseen was linked to the fact that we, on our side, decreased the acreage significantly by roughly 15%. and this decline that we had foreseen was linked to the fact that we on our side decreased the acreage significantly by roughly 15% And if you look into EU market data, the overall trend for hectares for beets in this sugar marketing year was also decreased by roughly 11%. So given normal harvest, we would have seen a strong decline in beet availability and the sugar availability in Europe. And this was the base assumption for our assumption that sugar prices should rise. And if you look into EU market data, the overall trend for hectares for beets in this sugar marketing year was also decreased by roughly 11%. and if you look into eu market data the overall trend for hectares for beets in this sugar marketing year was also decreased by roughly 11% So given normal harvest, we would have seen a strong decline in beet availability and the sugar availability in Europe. so given normal harvest we would have seen a strong decline in beet availability and the sugar availability in europe And this was the base assumption for our assumption that sugar prices should rise. and this was the base assumption for our assumption that sugar prices should rise At the end of the day, they increased, yeah, but they did not increase to the extent that we have foreseen originally. And that was the reason why we had to revise downward also the development in the Sugar segments. In a nutshell, yes, there is a price increase compared to last year, but not to the extent that we have foreseen because sugar availability and the harvesting conditions, they are much better than we have anticipated. When it comes to net financial debt, we are rating H&M staff, we revise downwards our rating. And what are the levels we feel comfortable? This is clearly if net financial debt over cash flow or EBITDA is below 3.5. We are not yet there, but we work hard on that. And what we feel comfortable is 3.5. And there's a clear commitment from the board to investment-grade rating. At the end of the day, they increased, yeah, but they did not increase to the extent that we have foreseen originally. at the end of the day they increased yeah but they did not increase to the extent that we have foreseen originally And that was the reason why we had to revise downward also the development in the Sugar segments. and that was the reason why we had to revise downward also the development in the sugar segments In a nutshell, yes, there is a price increase compared to last year, but not to the extent that we have foreseen because sugar availability and the harvesting conditions, they are much better than we have anticipated. in a nutshell yes there is a price increase compared to last year but not to the extent that we have foreseen because sugar availability and the harvesting conditions they are much better than we have anticipated When it comes to net financial debt, we are rating H&M staff, we revise downwards our rating. when it comes to net financial debt we are rating h&m staff we revise downwards our rating And what are the levels we feel comfortable? and what are the levels we feel comfortable This is clearly if net financial debt over cash flow or EBITDA is below 3.5. this is clearly if net financial debt over cash flow or ebitda is below 3.5 We are not yet there, but we work hard on that. we are not yet there but we work hard on that And what we feel comfortable is 3.5. and what we feel comfortable is 3.5 And there's a clear commitment from the board to investment-grade rating. and there's a clear commitment from the board to investment-grade rating And so we have put into place the measures to reduce costs. We go into all in each every cost positions. We do all our best to decrease CapEx, but decreasing CapEx is not so easy because you have ongoing projects with contracts in place. But what we can do to cancel or postpone, we do. And all in all, we strive to come below 3.5 net debt over EBITDA. But it's not the case as of today, but this is our ambition level, yeah, clearly. And so we have put into place the measures to reduce costs. and so we have put into place the measures to reduce costs We go into all in each every cost positions. we go into all in each every cost positions We do all our best to decrease CapEx, but decreasing CapEx is not so easy because you have ongoing projects with contracts in place. we do all our best to decrease capex but decreasing capex is not so easy because you have ongoing projects with contracts in place But what we can do to cancel or postpone, we do. but what we can do to cancel or postpone we do And all in all, we strive to come below 3.5 net debt over EBITDA. and all in all we strive to come below 3.5 net debt over ebitda But it's not the case as of today, but this is our ambition level, yeah, clearly. but it's not the case as of today but this is our ambition level yeah clearly

Speaker 5: Understood. Thank you, Dr. [uncertain] . Thanks. Understood. understood Thank you, Dr. [uncertain] . thank you dr. [uncertain] Thanks. thanks

Speaker 2: Thank you. Thank you. thank you

Speaker 4: The next question comes from the line of Hartmut Moers from Matelan Research. Please go ahead. The next question comes from the line of Hartmut Moers from Matelan Research. the next question comes from the line of hartmut moers from matelan research Please go ahead. please go ahead

Speaker 6: Yes, good morning. I have a couple of questions, and probably we could go through them one by one. So the first one would be on the Sugar segment here. What we find basically in the second quarter is roughly the same level, a bit below the sales level of the first quarter. And I mean, you should have basically a similar price level, at least with regard to the predominant part of your business, as your October contracts still lasted into the second quarter. But usually, you tend to have better volumes in the second quarter compared to the first. Yes, good morning. yes good morning I have a couple of questions, and probably we could go through them one by one. i have a couple of questions and probably we could go through them one by one So the first one would be on the Sugar segment here. so the first one would be on the sugar segment here What we find basically in the second quarter is roughly the same level, a bit below the sales level of the first quarter. what we find basically in the second quarter is roughly the same level a bit below the sales level of the first quarter And I mean, you should have basically a similar price level, at least with regard to the predominant part of your business, as your October contracts still lasted into the second quarter. and i mean you should have basically a similar price level at least with regard to the predominant part of your business as your october contracts still lasted into the second quarter But usually, you tend to have better volumes in the second quarter compared to the first. but usually you tend to have better volumes in the second quarter compared to the first So one would have or one could have thought that your sales increase in the Sugar segment in the second quarter compared to the first. So what was the reason here for, yeah, being just south of that level? And you still had quite a number of special items in the Sugar segment. How shall we look about that going forward? Meaning, would that now something related to the shutdowns you had on the AGRANA side of the business? And is there coming more with regard to the cost optimization measures you're just taking? So how shall we look about that going forward? So that's on the Sugar segment. So one would have or one could have thought that your sales increase in the Sugar segment in the second quarter compared to the first. so one would have or one could have thought that your sales increase in the sugar segment in the second quarter compared to the first So what was the reason here for, yeah, being just south of that level? so what was the reason here for yeah being just south of that level And you still had quite a number of special items in the Sugar segment. and you still had quite a number of special items in the sugar segment How shall we look about that going forward? how shall we look about that going forward Meaning, would that now something related to the shutdowns you had on the AGRANA side of the business? meaning would that now something related to the shutdowns you had on the agrana side of the business And is there coming more with regard to the cost optimization measures you're just taking? and is there coming more with regard to the cost optimization measures you're just taking So how shall we look about that going forward? so how shall we look about that going forward So that's on the Sugar segment. so that's on the sugar segment

Speaker 2: For the volumes and price development in sugar, I tend to rely more on H1 figures than on individual quarters because you can also have some shifts, yeah. So for me, the more reliable way to look at it is really H1 as total. And we do see for the six months that there is both a decrease in volumes and a decrease in prices, yeah. So we do see that the environment for sugar. There is some volume decreases and also for prices. For the volumes and price development in sugar, I tend to rely more on H1 figures than on individual quarters because you can also have some shifts, yeah. for the volumes and price development in sugar i tend to rely more on h1 figures than on individual quarters because you can also have some shifts yeah So for me, the more reliable way to look at it is really H1 as total. so for me the more reliable way to look at it is really h1 as total And we do see for the six months that there is both a decrease in volumes and a decrease in prices, yeah. and we do see for the six months that there is both a decrease in volumes and a decrease in prices yeah So we do see that the environment for sugar. so we do see that the environment for sugar There is some volume decreases and also for prices. there is some volume decreases and also for prices

Speaker 6: H1 versus H1 last year or? H1 versus H1 last year or? h1 versus h1 last year or

Speaker 2: Yeah, yeah, yeah. Compare H1 to H1. So there we have lower volumes and lower prices. And the lower volumes, they are across all markets. It's not one particular market or specific region. So for us, it's an overall trend that we have reduced volumes. Yeah, yeah, yeah. yeah yeah yeah Compare H1 to H1. compare h1 to h1 So there we have lower volumes and lower prices. so there we have lower volumes and lower prices And the lower volumes, they are across all markets. and the lower volumes they are across all markets It's not one particular market or specific region. it's not one particular market or specific region So for us, it's an overall trend that we have reduced volumes. so for us it's an overall trend that we have reduced volumes

Speaker 6: Okay. And going forward for the coming year, you're staying roughly level in terms of volumes. Is that a fair assumption? Okay. okay And going forward for the coming year, you're staying roughly level in terms of volumes. and going forward for the coming year you're staying roughly level in terms of volumes Is that a fair assumption? is that a fair assumption

Speaker 2: Yeah, that's a fair assumption. But we have to see, we did see some reductions in sugar consumption, for example, in beverages. Yeah, there's less sugar in beverages. And we also do see, for example, less chocolate sold. This is linked to the fact that cocoa is very expensive. So there is less chocolate sold and thus less sugar into chocolate. These are trends which can change, but for the time being, there's a slight decrease there, and we have to monitor those things. Yeah, that's a fair assumption. yeah that's a fair assumption But we have to see, we did see some reductions in sugar consumption, for example, in beverages. but we have to see we did see some reductions in sugar consumption for example in beverages Yeah, there's less sugar in beverages. yeah there's less sugar in beverages And we also do see, for example, less chocolate sold. and we also do see for example less chocolate sold This is linked to the fact that cocoa is very expensive. this is linked to the fact that cocoa is very expensive So there is less chocolate sold and thus less sugar into chocolate. so there is less chocolate sold and thus less sugar into chocolate These are trends which can change, but for the time being, there's a slight decrease there, and we have to monitor those things. these are trends which can change but for the time being there's a slight decrease there and we have to monitor those things

Speaker 6: Okay. Thank you. Second one would be on, Okay. okay Thank you. thank you Second one would be on, second one would be on

Speaker 2: on restructuring. So within the restructuring side, so as I said, particular link to the Sugar segment. And this is a follow-up cost of the restructuring we had, for example, with the closure of the two plants, Leopoldsdorf and Hrušovany, for example. on restructuring. on restructuring So within the restructuring side, so as I said, particular link to the Sugar segment. so within the restructuring side so as i said particular link to the sugar segment And this is a follow-up cost of the restructuring we had, for example, with the closure of the two plants, Leopoldsdorf and Hrušovany, for example. and this is a follow-up cost of the restructuring we had for example with the closure of the two plants leopoldsdorf and hrušovany for example

Speaker 6: Okay. But is that finished now, or shall we plan with further one-off items in the coming quarters? Okay. okay But is that finished now, or shall we plan with further one-off items in the coming quarters? but is that finished now or shall we plan with further one-off items in the coming quarters

Speaker 2: When it comes to those two plants, it's finished. But when it comes to special items coming forward, the issue of special items is that they are not really predictable. So we cannot exclude neither that it's that you will state that, but it's also possible that additional special items could come up in Q3, Q4. So we have to, when we start to do the planning for the years to come, we have to do our goodwill impairment test and all of that. But this will be then in Q3, Q4. It's too early to say whether there can be additional one-off items, but I cannot exclude them. When it comes to those two plants, it's finished. when it comes to those two plants it's finished But when it comes to special items coming forward, the issue of special items is that they are not really predictable. but when it comes to special items coming forward the issue of special items is that they are not really predictable So we cannot exclude neither that it's that you will state that, but it's also possible that additional special items could come up in Q3, Q4. so we cannot exclude neither that it's that you will state that but it's also possible that additional special items could come up in q3 q4 So we have to, when we start to do the planning for the years to come, we have to do our goodwill impairment test and all of that. so we have to when we start to do the planning for the years to come we have to do our goodwill impairment test and all of that But this will be then in Q3, Q4. but this will be then in q3 q4 It's too early to say whether there can be additional one-off items, but I cannot exclude them. it's too early to say whether there can be additional one-off items but i cannot exclude them

Speaker 6: Yeah. I mean, but there's nothing scheduled so far. So in terms of cost optimization or something, there's nothing you have in your budgeting right now? Yeah. yeah I mean, but there's nothing scheduled so far. i mean but there's nothing scheduled so far So in terms of cost optimization or something, there's nothing you have in your budgeting right now? so in terms of cost optimization or something there's nothing you have in your budgeting right now

Speaker 2: There are some special items also from the first six months when it comes to restructuring, when it comes to personnel severance payments that is possible. So what is executed or on the table at the end of August, that means for the first six months, this is included. But for sure, there can come additional points can come up in the development of Q3, Q4. Cannot exclude, but it's too early to say. There are some special items also from the first six months when it comes to restructuring, when it comes to personnel severance payments that is possible. there are some special items also from the first six months when it comes to restructuring when it comes to personnel severance payments that is possible So what is executed or on the table at the end of August, that means for the first six months, this is included. so what is executed or on the table at the end of august that means for the first six months this is included But for sure, there can come additional points can come up in the development of Q3, Q4. but for sure there can come additional points can come up in the development of q3 q4 Cannot exclude, but it's too early to say. cannot exclude but it's too early to say

Speaker 6: Okay. Thank you. With regard to CropEnergies, all your technical issues and so on, this is finalized now. So my question would be with regard to capacity utilization. So obviously, you had a rather low capacity utilization in the first half of the year due to these issues. But are we now looking to a more normal level again, or are there any reasons why one or the other side might not work at full capacity in the second half of the year? Okay. okay Thank you. thank you With regard to CropEnergies, all your technical issues and so on, this is finalized now. with regard to cropenergies all your technical issues and so on this is finalized now So my question would be with regard to capacity utilization. so my question would be with regard to capacity utilization So obviously, you had a rather low capacity utilization in the first half of the year due to these issues. so obviously you had a rather low capacity utilization in the first half of the year due to these issues But are we now looking to a more normal level again, or are there any reasons why one or the other side might not work at full capacity in the second half of the year? but are we now looking to a more normal level again or are there any reasons why one or the other side might not work at full capacity in the second half of the year

Speaker 2: There's nothing scheduled. And as I said, the market environment for biofuels as a total is positive. This is also the reason why prices have gone up significantly. There was a strong driving season, and on the months to come, there's nothing particular to see. So I would assume a high capacity utilization unless other technical issues would arise. But from the market perspective, there's good reasons to use fully the equipments we have. There's nothing scheduled. there's nothing scheduled And as I said, the market environment for biofuels as a total is positive. and as i said the market environment for biofuels as a total is positive This is also the reason why prices have gone up significantly. this is also the reason why prices have gone up significantly There was a strong driving season, and on the months to come, there's nothing particular to see. there was a strong driving season and on the months to come there's nothing particular to see So I would assume a high capacity utilization unless other technical issues would arise. so i would assume a high capacity utilization unless other technical issues would arise But from the market perspective, there's good reasons to use fully the equipments we have. but from the market perspective there's good reasons to use fully the equipments we have

Speaker 6: Perfect. And then I would like to come to your outlook. And I'm a bit lost here. So what you're saying compared to what you said on August 21st, you have somewhat reduced or specified the range for your Sugar segment, which is a bit weaker than what you expected still in August. And you have compensated this with a more positive outlook on the CropEnergies on the fruit side. But looking at the extent of the changes, I would guess. I mean, you've upped fruit by one notch, which is maximum of 4% on crop. Perfect. perfect And then I would like to come to your outlook. and then i would like to come to your outlook And I'm a bit lost here. and i'm a bit lost here So what you're saying compared to what you said on August 21st, you have somewhat reduced or specified the range for your Sugar segment, which is a bit weaker than what you expected still in August. so what you're saying compared to what you said on august 21st you have somewhat reduced or specified the range for your sugar segment which is a bit weaker than what you expected still in august And you have compensated this with a more positive outlook on the CropEnergies on the fruit side. and you have compensated this with a more positive outlook on the cropenergies on the fruit side But looking at the extent of the changes, I would guess. but looking at the extent of the changes i would guess I mean, you've upped fruit by one notch, which is maximum of 4% on crop. i mean you've upped fruit by one notch which is maximum of 4% on crop You're up, yeah, also five, six, seven million, so to come to 22 million. But if I took the midpoint of your new sugar guidance, which would be minus 200, it would basically be impossible for you under the indications that you have given to reach the midpoint of your group guidance. You would be somewhat below that. And that already would assume that, in particular, starch and Special Products would also materially improve in the second half of the year. And we would not look at run rates of the current Q2 level. So is what you're saying that we should rather look on your group guidance, not at the midpoint, but rather at the lower end of your guidance? Or how shall we interpret this? You're up, yeah, also five, six, seven million, so to come to 22 million. you're up yeah also five six seven million so to come to 22 million But if I took the midpoint of your new sugar guidance, which would be minus 200, it would basically be impossible for you under the indications that you have given to reach the midpoint of your group guidance. but if i took the midpoint of your new sugar guidance which would be minus 200 it would basically be impossible for you under the indications that you have given to reach the midpoint of your group guidance You would be somewhat below that. you would be somewhat below that And that already would assume that, in particular, starch and Special Products would also materially improve in the second half of the year. and that already would assume that in particular starch and special products would also materially improve in the second half of the year And we would not look at run rates of the current Q2 level. and we would not look at run rates of the current q2 level So is what you're saying that we should rather look on your group guidance, not at the midpoint, but rather at the lower end of your guidance? so is what you're saying that we should rather look on your group guidance not at the midpoint but rather at the lower end of your guidance Or how shall we interpret this? or how shall we interpret this

Speaker 2: As you said, nothing to be confused. It's exactly what you said. So we confirmed the group guidance 100-200, and we are slightly for the group guidance, we are slightly below midpoint, but close to midpoint. But rather, we are not at the lower end, but we are close to midpoint, but slightly lower below midpoint. As you said, nothing to be confused. as you said nothing to be confused It's exactly what you said. it's exactly what you said So we confirmed the group guidance 100-200, and we are slightly for the group guidance, we are slightly below midpoint, but close to midpoint. so we confirmed the group guidance 100-200 and we are slightly for the group guidance we are slightly below midpoint but close to midpoint But rather, we are not at the lower end, but we are close to midpoint, but slightly lower below midpoint. but rather we are not at the lower end but we are close to midpoint but slightly lower below midpoint

Speaker 6: Okay. That's fair. Okay. But not to an extent which would force us to update the guidance, the rules of MIR. So we are close to midpoint, slightly below. Okay. okay That's fair. that's fair Okay. okay But not to an extent which would force us to update the guidance, the rules of MIR. but not to an extent which would force us to update the guidance the rules of mir So we are close to midpoint, slightly below. so we are close to midpoint slightly below

Speaker 2: Okay. Okay. okay

Speaker 6: No, that's, let's say, feasible under the assumption that Special Products and starch would make a major jump from the Q2 level to the north. Then you arrive at exactly what you're saying. But you can confirm that this is the assumption then. That in starch and Special Products, Q3 and Q4 will be significantly better than Q2. No, that's, let's say, feasible under the assumption that Special Products and starch would make a major jump from the Q2 level to the north. no that's let's say feasible under the assumption that special products and starch would make a major jump from the q2 level to the north Then you arrive at exactly what you're saying. then you arrive at exactly what you're saying But you can confirm that this is the assumption then. but you can confirm that this is the assumption then That in starch and Special Products, Q3 and Q4 will be significantly better than Q2. that in starch and special products q3 and q4 will be significantly better than q2

Speaker 2: As I stated at the beginning, so we do not give particular ranges or points for the segments. So our main focus is on group level. As I said, it's a robust portfolio. We have different developments in the different segments. And the other thing that is also true, I said, that we believe that Q3 should be the turning point to the better in all of that. But your analysis is fully correct. We confirm group guidance EUR 100-200 million. As I stated at the beginning, so we do not give particular ranges or points for the segments. as i stated at the beginning so we do not give particular ranges or points for the segments So our main focus is on group level. so our main focus is on group level As I said, it's a robust portfolio. as i said it's a robust portfolio We have different developments in the different segments. we have different developments in the different segments And the other thing that is also true, I said, that we believe that Q3 should be the turning point to the better in all of that. and the other thing that is also true i said that we believe that q3 should be the turning point to the better in all of that But your analysis is fully correct. but your analysis is fully correct We confirm group guidance EUR 100 - 200 million. we confirm group guidance eur 100 - 200 million

Speaker 6: Perfect. Last point would be on the cost optimization measures you mentioned earlier. Could you just give us an update on that? I mean, you've already mentioned Südzucker, but could you be a bit more precise on the timeline? And also, I mean, you have said in the last call that the cost optimization is roughly split 50/50 between sugar and between Südzucker and AGRANA. Would you be prepared also to give a split between sugar and non-sugar divisions? Perfect. perfect Last point would be on the cost optimization measures you mentioned earlier. last point would be on the cost optimization measures you mentioned earlier Could you just give us an update on that? could you just give us an update on that I mean, you've already mentioned Südzucker, but could you be a bit more precise on the timeline? i mean you've already mentioned südzucker but could you be a bit more precise on the timeline And also, I mean, you have said in the last call that the cost optimization is roughly split 50/50 between sugar and between Südzucker and AGRANA. and also i mean you have said in the last call that the cost optimization is roughly split 50/50 between sugar and between südzucker and agrana Would you be prepared also to give a split between sugar and non-sugar divisions? would you be prepared also to give a split between sugar and non-sugar divisions

Speaker 2: This is unchanged. So this is still true what I said in recent conference calls. We have initiated a lot of cost-saving initiatives. We are here on track. And the different amounts that have already been communicated, we still stick to them. So in total, we strive for savings of EUR 200 million for the Südzucker Group, which are to materialize in the coming years. This is unchanged. this is unchanged So this is still true what I said in recent conference calls. so this is still true what i said in recent conference calls We have initiated a lot of cost-saving initiatives. we have initiated a lot of cost-saving initiatives We are here on track. we are here on track And the different amounts that have already been communicated, we still stick to them. and the different amounts that have already been communicated we still stick to them So in total, we strive for savings of EUR 200 million for the Südzucker Group, which are to materialize in the coming years. so in total we strive for savings of eur 200 million for the südzucker group which are to materialize in the coming years For this fiscal, it is still our target, and we are on track for EUR 80 million cost savings, which is half of half AGRANA and then Südzucker. AGRANA has the program called Next Level, and here, they strive up for savings up to EUR 80-100 million per year starting in 2027, 2028, so we started at Südzucker. This program is called Optimum, which strives for EUR 100 million savings in the Sugar segment, also coming into effect fully in the next three years, so we are on track, but it's not that all of the amounts are already visible this year, so this will build up, but in general, we are on track, and there's nothing changed to previous communications on our cost-saving measures. For this fiscal, it is still our target, and we are on track for EUR 80 million cost savings, which is half of half AGRANA and then Südzucker. for this fiscal it is still our target and we are on track for eur 80 million cost savings which is half of half agrana and then südzucker AGRANA has the program called Next Level, and here, they strive up for savings up to EUR 80-100 million per year starting in 2027, 2028, so we started at Südzucker. agrana has the program called next level and here they strive up for savings up to eur 80-100 million per year starting in 2027 2028 so we started at südzucker This program is called Optimum, which strives for EUR 100 million savings in the Sugar segment, also coming into effect fully in the next three years, so we are on track, but it's not that all of the amounts are already visible this year, so this will build up, but in general, we are on track, and there's nothing changed to previous communications on our cost-saving measures. this program is called optimum which strives for eur 100 million savings in the sugar segment also coming into effect fully in the next three years so we are on track but it's not that all of the amounts are already visible this year so this will build up but in general we are on track and there's nothing changed to previous communications on our cost-saving measures

Speaker 6: Okay, but just to make that clear, the EUR 100 million coming from Südzucker are 100% sugar. There's nothing in the other divisions, in your other divisions. Okay, but just to make that clear, the EUR 100 million coming from Südzucker are 100% sugar. okay but just to make that clear the eur 100 million coming from südzucker are 100% sugar There's nothing in the other divisions, in your other divisions. there's nothing in the other divisions in your other divisions

Speaker 2: No. In total, we strive for 200 after, let's say, three years. And this is 100 for sugar and 100 for the others. No. no In total, we strive for 200 after, let's say, three years. in total we strive for 200 after let's say three years And this is 100 for sugar and 100 for the others. and this is 100 for sugar and 100 for the others

Speaker 6: Okay. Okay. Thank you very much. That was very helpful. Okay. okay Okay. okay Thank you very much. thank you very much That was very helpful. that was very helpful

Speaker 2: Welcome. Welcome. welcome

Speaker 4: As a reminder, if you wish to register for a question, please press star and one on your telephone. We now have a question from the line of Oliver Schwarz from Warburg Research. Please go ahead. As a reminder, if you wish to register for a question, please press star and one on your telephone. as a reminder if you wish to register for a question please press star and one on your telephone We now have a question from the line of Oliver Schwarz from Warburg Research. we now have a question from the line of oliver schwarz from warburg research Please go ahead. please go ahead

Speaker 1: Good morning, gentlemen. Thank you for taking my question. May I come back to CropEnergies first? I appreciate that you are flexible enough to notch up your outlook following the increase in ethanol prices. And you already have given some remarks regarding the reasons behind that. However, I guess driving season should now be over. We still have the problem of U.S. imports into the European market and so on and so forth. So I'm wondering what you think, how sustainable this increase is given the overall structural situation the European market is in. Good morning, gentlemen. good morning gentlemen Thank you for taking my question. thank you for taking my question May I come back to CropEnergies first? may i come back to cropenergies first I appreciate that you are flexible enough to notch up your outlook following the increase in ethanol prices. i appreciate that you are flexible enough to notch up your outlook following the increase in ethanol prices And you already have given some remarks regarding the reasons behind that. and you already have given some remarks regarding the reasons behind that However, I guess driving season should now be over. however i guess driving season should now be over We still have the problem of U.S. imports into the European market and so on and so forth. we still have the problem of u.s imports into the european market and so on and so forth So I'm wondering what you think, how sustainable this increase is given the overall structural situation the European market is in. so i'm wondering what you think how sustainable this increase is given the overall structural situation the european market is in And that would lead me to my second question of your U.K. asset Ensus. You stated that you are looking for full capacity utilization in the second half of this year. And I guess that very much includes Ensus then. So what's the status of this last remaining asset that the U.K. has? It seems like especially the U.K. market is under heavy pressure given that they have made trade deals with the U.S. that might be less favorable for the U.K. bioethanol industry. And one of your competitors has already pulled the plug on his plant. So yours is the only remaining one. And I'm wondering what's the situation there. And that would lead me to my second question of your U.K. asset Ensus. and that would lead me to my second question of your u.k asset ensus You stated that you are looking for full capacity utilization in the second half of this year. you stated that you are looking for full capacity utilization in the second half of this year And I guess that very much includes Ensus then. and i guess that very much includes ensus then So what's the status of this last remaining asset that the U.K. has? so what's the status of this last remaining asset that the u.k has It seems like especially the U.K. market is under heavy pressure given that they have made trade deals with the U.S. that might be less favorable for the U.K. bioethanol industry. it seems like especially the u.k market is under heavy pressure given that they have made trade deals with the u.s that might be less favorable for the u.k bioethanol industry And one of your competitors has already pulled the plug on his plant. and one of your competitors has already pulled the plug on his plant So yours is the only remaining one. so yours is the only remaining one And I'm wondering what's the situation there. and i'm wondering what's the situation there And lastly, could you give us an update on your future, let's say, value chain that you are currently trying to expand into chemicals, given that the chemical industry in Europe has a lot of structural problems at the moment and is shrinking? So your upcoming production, once those assets currently under construction have started up, I guess your customer base must or your potential customer base must have shrunk. And those who are still in the game, they currently have problems regarding their, when it comes to pushing their volumes in the market. So how welcome will your product be coming in addition to what's already available in the market? That would be my three questions on CropEnergies. Thank you. And lastly, could you give us an update on your future, let's say, value chain that you are currently trying to expand into chemicals, given that the chemical industry in Europe has a lot of structural problems at the moment and is shrinking? and lastly could you give us an update on your future let's say value chain that you are currently trying to expand into chemicals given that the chemical industry in europe has a lot of structural problems at the moment and is shrinking So your upcoming production, once those assets currently under construction have started up, I guess your customer base must or your potential customer base must have shrunk. so your upcoming production once those assets currently under construction have started up i guess your customer base must or your potential customer base must have shrunk And those who are still in the game, they currently have problems regarding their, when it comes to pushing their volumes in the market. and those who are still in the game they currently have problems regarding their when it comes to pushing their volumes in the market So how welcome will your product be coming in addition to what's already available in the market? so how welcome will your product be coming in addition to what's already available in the market That would be my three questions on CropEnergies. that would be my three questions on cropenergies Thank you. thank you

Speaker 2: For ethanol prices, so when you look into the fiscal, so we had ethanol prices between, let's say, roughly 600, quite stable over the last since the start of this fiscal. So starting with 700, our first forecast was to see 700 and plus, but prices in fact decreased to roughly 600 since the beginning of this fiscal. And what we did see over the last, it started in September, but materialized in October. Now the prices have jumped over 800. If you now ask me whether I believe this to continue, I just have to say I cannot give you a promise because we see, as we always state, ethanol prices are volatile. For sure, there is always the risk of major changes, be it on the tech side, be it on the import side, be it on bilateral agreements between countries. For ethanol prices, so when you look into the fiscal, so we had ethanol prices between, let's say, roughly 600, quite stable over the last since the start of this fiscal. for ethanol prices so when you look into the fiscal so we had ethanol prices between let's say roughly 600 quite stable over the last since the start of this fiscal So starting with 700, our first forecast was to see 700 and plus, but prices in fact decreased to roughly 600 since the beginning of this fiscal. so starting with 700 our first forecast was to see 700 and plus but prices in fact decreased to roughly 600 since the beginning of this fiscal And what we did see over the last, it started in September, but materialized in October. and what we did see over the last it started in september but materialized in october Now the prices have jumped over 800. now the prices have jumped over 800 If you now ask me whether I believe this to continue, I just have to say I cannot give you a promise because we see, as we always state, ethanol prices are volatile. if you now ask me whether i believe this to continue i just have to say i cannot give you a promise because we see as we always state ethanol prices are volatile For sure, there is always the risk of major changes, be it on the tech side, be it on the import side, be it on bilateral agreements between countries. for sure there is always the risk of major changes be it on the tech side be it on the import side be it on bilateral agreements between countries So it's really difficult to predict. But for the time being, we see EUR 800. If you look into the forward curve, there's still a backwardation. So the anticipation is that this EUR 800 is not to last. But there are good reasons. Also, when I look into supply and demand, there is not too much volume in ARA, Antwerp, Rotterdam region. So I believe that prices should be supportive, but I cannot give you a guarantee. It is still a volatile market. It's a commodity market. It will depend on factors. But from the supply and demand side, or especially from the demand side, there's robust demand for ethanol. But for sure, there's no guarantee. We are very happy with the price increase. To be seen how long and to which extent this will last. So it's really difficult to predict. so it's really difficult to predict But for the time being, we see EUR 800. but for the time being we see eur 800 If you look into the forward curve, there's still a backwardation. if you look into the forward curve there's still a backwardation So the anticipation is that this EUR 800 is not to last. so the anticipation is that this eur 800 is not to last But there are good reasons. but there are good reasons Also, when I look into supply and demand, there is not too much volume in ARA, Antwerp, Rotterdam region. also when i look into supply and demand there is not too much volume in ara antwerp rotterdam region So I believe that prices should be supportive, but I cannot give you a guarantee. so i believe that prices should be supportive but i cannot give you a guarantee It is still a volatile market. it is still a volatile market It's a commodity market. it's a commodity market It will depend on factors. it will depend on factors But from the supply and demand side, or especially from the demand side, there's robust demand for ethanol. but from the supply and demand side or especially from the demand side there's robust demand for ethanol But for sure, there's no guarantee. but for sure there's no guarantee We are very happy with the price increase. we are very happy with the price increase To be seen how long and to which extent this will last. to be seen how long and to which extent this will last But we have taken this into our forecast to a certain extent with the better price assumptions that we have seen so far. When it comes to Ensus, when I said we strive for full capacity utilization, there's a question mark still on Ensus. So the negotiations with the U.K. government on our support package are still ongoing. I cannot disclose any details. We are confident because we believe Ensus is really significant to U.K. industry, be it on the ethanol side, but also on the CO2 side and the co-product side. So it's an important player in the industrial landscape of Britain. So we hope that the discussions or the negotiations with the government would find a positive end. But I cannot disclose in that it's not finally done. But we have taken this into our forecast to a certain extent with the better price assumptions that we have seen so far. but we have taken this into our forecast to a certain extent with the better price assumptions that we have seen so far When it comes to Ensus, when I said we strive for full capacity utilization, there's a question mark still on Ensus. when it comes to ensus when i said we strive for full capacity utilization there's a question mark still on ensus So the negotiations with the U.K. government on our support package are still ongoing. so the negotiations with the u.k government on our support package are still ongoing I cannot disclose any details. i cannot disclose any details We are confident because we believe Ensus is really significant to U.K. industry, be it on the ethanol side, but also on the CO2 side and the co-product side. we are confident because we believe ensus is really significant to u.k industry be it on the ethanol side but also on the co2 side and the co-product side So it's an important player in the industrial landscape of Britain. so it's an important player in the industrial landscape of britain So we hope that the discussions or the negotiations with the government would find a positive end. so we hope that the discussions or the negotiations with the government would find a positive end But I cannot disclose in that it's not finally done. but i cannot disclose in that it's not finally done But you have seen that the competitor has stated to stop production. We are still in negotiations with the government.So there's a question mark on Ensus. Your third question was on bio-based chemicals. It is true. Your concern comes from the point that climate mitigation measures are under discussion. This started with the Trump administration putting into question climate change and focusing much more on fossil fuels. For sure, this is at present a trend or a downward trend for climate protection measures. But this does not lead us to change our strategy. We still believe we need green carbohydrates. We have to get rid of fossil fuels, be it in the transport sector, be it in chemistry. And we continue with our project as foreseen. So start of operations is to come as foreseen. And we do have still positive discussions with potential customers. But you have seen that the competitor has stated to stop production. but you have seen that the competitor has stated to stop production We are still in negotiations with the government. we are still in negotiations with the government So there's a question mark on Ensus. so there's a question mark on ensus Your third question was on bio-based chemicals. your third question was on bio-based chemicals It is true. it is true Your concern comes from the point that climate mitigation measures are under discussion. your concern comes from the point that climate mitigation measures are under discussion This started with the Trump administration putting into question climate change and focusing much more on fossil fuels. this started with the trump administration putting into question climate change and focusing much more on fossil fuels For sure, this is at present a trend or a downward trend for climate protection measures. for sure this is at present a trend or a downward trend for climate protection measures But this does not lead us to change our strategy. but this does not lead us to change our strategy We still believe we need green carbohydrates. we still believe we need green carbohydrates We have to get rid of fossil fuels, be it in the transport sector, be it in chemistry. we have to get rid of fossil fuels be it in the transport sector be it in chemistry And we continue with our project as foreseen. and we continue with our project as foreseen So start of operations is to come as foreseen. so start of operations is to come as foreseen And we do have still positive discussions with potential customers. and we do have still positive discussions with potential customers The product that we want to produce is ethyl acetate, which is a solvent, which is needed for many also very interesting products, be it solvents, be it paints, be it coatings, be it glue adhesives. It goes into nail polish and furniture, so this is really interesting products, and our customers, they also have very much interest in having this green product, so there's no change in our strategy, but I confirm the overall framework for climate mitigation measures has changed, but I believe this to be not a continuous trend because I think we will all have to do our best to reduce our carbon footprint, and we will continue to do so. The product that we want to produce is ethyl acetate, which is a solvent, which is needed for many also very interesting products, be it solvents, be it paints, be it coatings, be it glue adhesives. the product that we want to produce is ethyl acetate which is a solvent which is needed for many also very interesting products be it solvents be it paints be it coatings be it glue adhesives It goes into nail polish and furniture, so this is really interesting products, and our customers, they also have very much interest in having this green product, so there's no change in our strategy, but I confirm the overall framework for climate mitigation measures has changed, but I believe this to be not a continuous trend because I think we will all have to do our best to reduce our carbon footprint, and we will continue to do so. it goes into nail polish and furniture so this is really interesting products and our customers they also have very much interest in having this green product so there's no change in our strategy but i confirm the overall framework for climate mitigation measures has changed but i believe this to be not a continuous trend because i think we will all have to do our best to reduce our carbon footprint and we will continue to do so

Speaker 1: Thank you for that. I guess I'll step back into the line and ask the next bunch of questions after that. Thank you. Okay. Thank you for that. thank you for that I guess I'll step back into the line and ask the next bunch of questions after that. i guess i'll step back into the line and ask the next bunch of questions after that Thank you. thank you Okay. okay

Speaker 4: The next question comes from the line of Setu Sharda from Barclays. Please go ahead. The next question comes from the line of Setu Sharda from Barclays. the next question comes from the line of setu sharda from barclays Please go ahead. please go ahead

Speaker 3: Yeah. Hi. Good morning, so my question is, what was the achieved average price in sugar marketing this year? And was it in line or lower versus last year? And what is your exposure to spot prices move over the course of the next 12 months? Yeah. yeah Hi. hi Good morning, so my question is, what was the achieved average price in sugar marketing this year? good morning so my question is what was the achieved average price in sugar marketing this year And was it in line or lower versus last year? and was it in line or lower versus last year And what is your exposure to spot prices move over the course of the next 12 months? and what is your exposure to spot prices move over the course of the next 12 months

Speaker 2: As I stated, I cannot disclose sugar prices because we are in a commodity market and for competition reasons. I cannot disclose any precise numbers on sugar prices of Südzucker. As an overall trend and you will find that in our investor slide that you have to rely on available market data and what you can see is both from the world market sugar market prices. There is a downward trend since the beginning of the fiscal and the same is true for European sugar prices. They have declined significantly. And based on the European sugar prices, you can make your calculations for Südzucker group. But because typically our prices very much rely on European sugar prices, but I cannot disclose individual Südzucker sugar prices. As I stated, I cannot disclose sugar prices because we are in a commodity market and for competition reasons. as i stated i cannot disclose sugar prices because we are in a commodity market and for competition reasons I cannot disclose any precise numbers on sugar prices of Südzucker. i cannot disclose any precise numbers on sugar prices of südzucker As an overall trend and you will find that in our investor slide that you have to rely on available market data and what you can see is both from the world market sugar market prices. as an overall trend and you will find that in our investor slide that you have to rely on available market data and what you can see is both from the world market sugar market prices There is a downward trend since the beginning of the fiscal and the same is true for European sugar prices. there is a downward trend since the beginning of the fiscal and the same is true for european sugar prices They have declined significantly. they have declined significantly And based on the European sugar prices, you can make your calculations for Südzucker group. and based on the european sugar prices you can make your calculations for südzucker group But because typically our prices very much rely on European sugar prices, but I cannot disclose individual Südzucker sugar prices. but because typically our prices very much rely on european sugar prices but i cannot disclose individual südzucker sugar prices

Speaker 3: Okay. And what is your exposure to spot prices? How much you have contracted this year? Okay. okay And what is your exposure to spot prices? and what is your exposure to spot prices How much you have contracted this year? how much you have contracted this year

Speaker 2: Our exposure to spot prices is not meaningful in size because typically we do one-year contracts with customers. Those customers do foresee a certain flexibility in volumes. So we have a certain development. It also depends on some regions have more spot contracts than others. But all in all, spot contracts or spot volumes are not meaningful in size. We do have yearly contracts. Our exposure to spot prices is not meaningful in size because typically we do one-year contracts with customers. our exposure to spot prices is not meaningful in size because typically we do one-year contracts with customers Those customers do foresee a certain flexibility in volumes. those customers do foresee a certain flexibility in volumes So we have a certain development. so we have a certain development It also depends on some regions have more spot contracts than others. it also depends on some regions have more spot contracts than others But all in all, spot contracts or spot volumes are not meaningful in size. but all in all spot contracts or spot volumes are not meaningful in size We do have yearly contracts. we do have yearly contracts

Speaker 3: Okay. Thanks. And one more thing. Can you give some color on what has changed in sugar production, your expectation versus Q1 stage? There was a mention that you expect better harvest, so. Okay. okay Thanks. thanks And one more thing. and one more thing Can you give some color on what has changed in sugar production, your expectation versus Q1 stage? can you give some color on what has changed in sugar production your expectation versus q1 stage There was a mention that you expect better harvest, so. there was a mention that you expect better harvest so

Speaker 2: Yeah. So when it comes to Europe, that's what you have seen. So go back to page 11 for Europe. It is foreseen that production should come out in 25, 26 at 15.9 compared to 17.0 in last year. So there is a reduction in European sugar production. What has changed is the extent of this decrease. I would have assumed, or we have assumed when setting up our budget, a stronger decrease. This stronger decrease was based on the fact that we knew from our side that we decreased significantly the acreage in our regions. For all of Europe, the decrease in acreage was 11%. That was the number that was known, let's say, in March, April when we set up our budget. Yeah. yeah So when it comes to Europe, that's what you have seen. so when it comes to europe that's what you have seen So go back to page 11 for Europe. so go back to page 11 for europe It is foreseen that production should come out in 25, 26 at 15.9 compared to 17.0 in last year. it is foreseen that production should come out in 25 26 at 15.9 compared to 17.0 in last year So there is a reduction in European sugar production. so there is a reduction in european sugar production What has changed is the extent of this decrease. what has changed is the extent of this decrease I would have assumed, or we have assumed when setting up our budget, a stronger decrease. i would have assumed or we have assumed when setting up our budget a stronger decrease This stronger decrease was based on the fact that we knew from our side that we decreased significantly the acreage in our regions. this stronger decrease was based on the fact that we knew from our side that we decreased significantly the acreage in our regions For all of Europe, the decrease in acreage was 11%. for all of europe the decrease in acreage was 11% That was the number that was known, let's say, in March, April when we set up our budget. that was the number that was known let's say in march april when we set up our budget And that means, given normal harvesting conditions, let's say, for example, based on the average of the last five years, this would have led to a significant decrease in feed and thus sugar production. What has changed and what we also anticipated leading to reasons for lower sugar production was the diseases that we have seen last year. So one is called Stolbur, the other SBR Syndrome des Basses Richesses. And what we also have included in our initial forecast was a very dry summer. Yeah. That's what we called it at the time when we lastly discussed. We called it our 75% scenario. When setting up the budget in March, April, the projections for the weather conditions in summer indicated a very dry and hot summer. And that means, given normal harvesting conditions, let's say, for example, based on the average of the last five years, this would have led to a significant decrease in feed and thus sugar production. and that means given normal harvesting conditions let's say for example based on the average of the last five years this would have led to a significant decrease in feed and thus sugar production What has changed and what we also anticipated leading to reasons for lower sugar production was the diseases that we have seen last year. what has changed and what we also anticipated leading to reasons for lower sugar production was the diseases that we have seen last year So one is called Stolbur, the other SBR Syndrome des Basses Richesses. so one is called stolbur the other sbr syndrome des basses richesses And what we also have included in our initial forecast was a very dry summer. and what we also have included in our initial forecast was a very dry summer Yeah. yeah That's what we called it at the time when we lastly discussed. that's what we called it at the time when we lastly discussed We called it our 75% scenario. we called it our 75% scenario When setting up the budget in March, April, the projections for the weather conditions in summer indicated a very dry and hot summer. when setting up the budget in march april the projections for the weather conditions in summer indicated a very dry and hot summer This would have led to the fact that also the protection measures would not have been very effective, or it was unclear to which extent those measures would have been effective. This led us to our initial forecast with a much lower sugar production. At the end of the day, when this is now what has changed, July came out very wet and cold. That was beneficial to the beets. The same was true for August. Here, the weather conditions have shown sunny days and rainy days and cold nights. This is the perfect mix for the beets. What we do see today, and this is not what we have expected, we do see very good harvesting conditions in Europe. There's much more beet and solid beet and without diseases available for this sugar campaign. This would have led to the fact that also the protection measures would not have been very effective, or it was unclear to which extent those measures would have been effective. this would have led to the fact that also the protection measures would not have been very effective or it was unclear to which extent those measures would have been effective This led us to our initial forecast with a much lower sugar production. this led us to our initial forecast with a much lower sugar production At the end of the day, when this is now what has changed, July came out very wet and cold. at the end of the day when this is now what has changed july came out very wet and cold That was beneficial to the beets. that was beneficial to the beets The same was true for August. the same was true for august Here, the weather conditions have shown sunny days and rainy days and cold nights. here the weather conditions have shown sunny days and rainy days and cold nights This is the perfect mix for the beets. this is the perfect mix for the beets What we do see today, and this is not what we have expected, we do see very good harvesting conditions in Europe. what we do see today and this is not what we have expected we do see very good harvesting conditions in europe There's much more beet and solid beet and without diseases available for this sugar campaign. there's much more beet and solid beet and without diseases available for this sugar campaign This was not what we had anticipated in our initial budget. So it's positive for the farmers. But given it leads to a much better sugar availability in Europe, this has brought us a bearish sentiment on the prices. And this was the reason why at the end of the day, we had to decrease our forecast for the Sugar segment. This was not what we had anticipated in our initial budget. this was not what we had anticipated in our initial budget So it's positive for the farmers. so it's positive for the farmers But given it leads to a much better sugar availability in Europe, this has brought us a bearish sentiment on the prices. but given it leads to a much better sugar availability in europe this has brought us a bearish sentiment on the prices And this was the reason why at the end of the day, we had to decrease our forecast for the Sugar segment. and this was the reason why at the end of the day we had to decrease our forecast for the sugar segment

Speaker 4: We have a follow-up question from the line of Oliver Schwarz from Warburg Research. Please go ahead. We have a follow-up question from the line of Oliver Schwarz from Warburg Research. we have a follow-up question from the line of oliver schwarz from warburg research Please go ahead. please go ahead

Speaker 1: Actually, it's more than one. I'm sorry about that. But hopefully, I can. Actually, it's more than one. actually it's more than one I'm sorry about that. i'm sorry about that But hopefully, I can. but hopefully i can

Speaker 2: Oh, we still have time, Oliver. No problem. Oh, we still have time, Oliver. oh we still have time, oliver No problem. no problem

Speaker 1: I can quickly talk you through all of my questions. Sorry for that. Firstly, starch. You're talking about higher raw material costs. Given grain prices have declined due to we didn't only have a strong harvest in sugar, but also all other crops seem to be affected. Positive volume development all over the place, and that obviously also puts pressure on grain prices. Still, in starch, you're talking about higher raw material costs, which makes me wonder, is that still, let's say, a remnant of hedging in regard to raw material costs that will peter off over time? Or why is that? I can quickly talk you through all of my questions. i can quickly talk you through all of my questions Sorry for that. sorry for that Firstly, starch. firstly starch You're talking about higher raw material costs. you're talking about higher raw material costs Given grain prices have declined due to we didn't only have a strong harvest in sugar, but also all other crops seem to be affected. given grain prices have declined due to we didn't only have a strong harvest in sugar but also all other crops seem to be affected Positive volume development all over the place, and that obviously also puts pressure on grain prices. positive volume development all over the place and that obviously also puts pressure on grain prices Still, in starch, you're talking about higher raw material costs, which makes me wonder, is that still, let's say, a remnant of hedging in regard to raw material costs that will peter off over time? still in starch you're talking about higher raw material costs which makes me wonder is that still let's say a remnant of hedging in regard to raw material costs that will peter off over time Or why is that? or why is that

Speaker 2: Yeah. As I stated, so in H1 compared to H1 previous year, we do see higher raw material and energy costs in Starch segment, so this is true for the corn prices. This is true for the wheat prices, and this is also true for the energy. It is true what you said that when you look at MATIF quotations, grain prices have come down, but there's also always a question of hedging. What hedging positions do you have? This can have an impact. Yeah. yeah As I stated, so in H1 compared to H1 previous year, we do see higher raw material and energy costs in Starch segment, so this is true for the corn prices. as i stated so in h1 compared to h1 previous year we do see higher raw material and energy costs in starch segment so this is true for the corn prices This is true for the wheat prices, and this is also true for the energy. this is true for the wheat prices and this is also true for the energy It is true what you said that when you look at MATIF quotations, grain prices have come down, but there's also always a question of hedging. it is true what you said that when you look at matif quotations grain prices have come down but there's also always a question of hedging What hedging positions do you have? what hedging positions do you have This can have an impact. this can have an impact I cannot disclose all the details, but hedging can have an impact. And also, it has an impact in the regions where you buy your grain or corn or whatever. So MATIF is always the price in Rouen, France. And typically, you have plus and minuses in different regions. And so this can lead to the fact that even if Rouen, MATIF prices go down, you can have different prices depending on availability in certain regions or quality in certain regions. So all in all, this led to the fact that for the Starch segment, unfortunately, we do see compared to H1 last year, higher raw material costs in all the three segments. It's true for corn. It's true for wheat. And it's true for energy. I cannot disclose all the details, but hedging can have an impact. i cannot disclose all the details but hedging can have an impact And also, it has an impact in the regions where you buy your grain or corn or whatever. and also it has an impact in the regions where you buy your grain or corn or whatever So MATIF is always the price in Rouen, France. so matif is always the price in rouen france And typically, you have plus and minuses in different regions. and typically you have plus and minuses in different regions And so this can lead to the fact that even if Rouen, MATIF prices go down, you can have different prices depending on availability in certain regions or quality in certain regions. and so this can lead to the fact that even if rouen matif prices go down you can have different prices depending on availability in certain regions or quality in certain regions So all in all, this led to the fact that for the Starch segment, unfortunately, we do see compared to H1 last year, higher raw material costs in all the three segments. so all in all this led to the fact that for the starch segment unfortunately we do see compared to h1 last year higher raw material costs in all the three segments It's true for corn. it's true for corn It's true for wheat. it's true for wheat And it's true for energy. and it's true for energy

Speaker 1: Would that be true also for H2? Or is this trend to reverse in H2? Would that be true also for H2? would that be true also for h2 Or is this trend to reverse in H2? or is this trend to reverse in h2

Speaker 2: I don't have that figure in mind. Sorry. We will have to see. I mean, we have the full year guidance, but I do not have on hand the different assumptions for those cost components for Starch segments. I don't know. We can have a look, but here, I don't have that with me. I don't have that figure in mind. i don't have that figure in mind Sorry. sorry We will have to see. we will have to see I mean, we have the full year guidance, but I do not have on hand the different assumptions for those cost components for Starch segments. i mean we have the full year guidance but i do not have on hand the different assumptions for those cost components for starch segments I don't know. i don't know We can have a look, but here, I don't have that with me. we can have a look but here i don't have that with me

Speaker 1: Yeah. I get that. But if it's solely, let's say, a function of your hedging position, I guess you should have an insight in that. But we can do that at a later stage. No problem at all. Second question on fruit. Obviously, the bright spot in your portfolio at the moment. When looking at the sales development and looking at the comments on volumes, it seems like more or less stable volumes. Sales are not greatly up, which indicates that prices are mostly unchanged as well. So this increase in profitability must have had something to do with lower costs. Is that a result of cost-cutting measures? So is that something that is company-specific? Or is that lower raw material costs that might have to be passed on over time to customers? Yeah. yeah I get that. i get that But if it's solely, let's say, a function of your hedging position, I guess you should have an insight in that. but if it's solely let's say a function of your hedging position i guess you should have an insight in that But we can do that at a later stage. but we can do that at a later stage No problem at all. no problem at all Second question on fruit. second question on fruit Obviously, the bright spot in your portfolio at the moment. obviously the bright spot in your portfolio at the moment When looking at the sales development and looking at the comments on volumes, it seems like more or less stable volumes. when looking at the sales development and looking at the comments on volumes it seems like more or less stable volumes Sales are not greatly up, which indicates that prices are mostly unchanged as well. sales are not greatly up which indicates that prices are mostly unchanged as well So this increase in profitability must have had something to do with lower costs. so this increase in profitability must have had something to do with lower costs Is that a result of cost-cutting measures? is that a result of cost-cutting measures So is that something that is company-specific? so is that something that is company-specific Or is that lower raw material costs that might have to be passed on over time to customers? or is that lower raw material costs that might have to be passed on over time to customers

Speaker 2: There's not one answer putting everything into or one silver bullet answering everything. So because we have to when we talk about fruit, there are two divisions. So one division is Fruit Preparation. The other one is Fruit Concentrates. And so the development in those divisions is not parallel. Both of them are positive, show an increase in operating profit and turnover. But the development within the cost positions is different. Your question, for sure, we do all to entire Südzucker, we do all to reduce administration costs and so forth. So there's one aspect of that into that. But particularly for the fruit, we do have also increase in material costs. So this is still true. There's not one answer putting everything into or one silver bullet answering everything. there's not one answer putting everything into or one silver bullet answering everything So because we have to when we talk about fruit, there are two divisions. so because we have to when we talk about fruit there are two divisions So one division is Fruit Preparation. so one division is fruit preparation The other one is Fruit Concentrates. the other one is fruit concentrates And so the development in those divisions is not parallel. and so the development in those divisions is not parallel Both of them are positive, show an increase in operating profit and turnover. both of them are positive show an increase in operating profit and turnover But the development within the cost positions is different. but the development within the cost positions is different Your question, for sure, we do all to entire Südzucker, we do all to reduce administration costs and so forth. your question for sure we do all to entire südzucker we do all to reduce administration costs and so forth So there's one aspect of that into that. so there's one aspect of that into that But particularly for the fruit, we do have also increase in material costs. but particularly for the fruit we do have also increase in material costs So this is still true. so this is still true This is true for Fruit Preparations. So there is an upward trend for those fruit components that we buy. And the same is true for the concentrate business. Also here, the Fruit Concentrates, they show an increase in material prices. But we have a good development on the pricing situation and on the other costs. So it's a mix of all, but it's not one explanation that fits for all of the divisions. But in general, material prices go up. This is true for Fruit Preparations. this is true for fruit preparations So there is an upward trend for those fruit components that we buy. so there is an upward trend for those fruit components that we buy And the same is true for the concentrate business. and the same is true for the concentrate business Also here, the Fruit Concentrates, they show an increase in material prices. also here the fruit concentrates they show an increase in material prices But we have a good development on the pricing situation and on the other costs. but we have a good development on the pricing situation and on the other costs So it's a mix of all, but it's not one explanation that fits for all of the divisions. so it's a mix of all but it's not one explanation that fits for all of the divisions But in general, material prices go up. but in general material prices go up

Speaker 1: Okay. Thank you very much for that. And perhaps can you? I know it's perhaps a bit delayed now, but can you share about your key thoughts about, let's say, the exchange of your hybrid bond? Obviously, the new hybrid bond is a bit more expensive than the old one was when it comes to the coupon.You had costs regarding issuing the bond and also costs regarding to buy the old hybrid bond back. So there needs to be an upside somewhere. Okay. okay Thank you very much for that. thank you very much for that And perhaps can you? and perhaps can you I know it's perhaps a bit delayed now, but can you share about your key thoughts about, let's say, the exchange of your hybrid bond? i know it's perhaps a bit delayed now but can you share about your key thoughts about let's say the exchange of your hybrid bond Obviously, the new hybrid bond is a bit more expensive than the old one was when it comes to the coupon. obviously the new hybrid bond is a bit more expensive than the old one was when it comes to the coupon You had costs regarding issuing the bond and also costs regarding to buy the old hybrid bond back. you had costs regarding issuing the bond and also costs regarding to buy the old hybrid bond back So there needs to be an upside somewhere. so there needs to be an upside somewhere And given that we are looking for interest rates to rather go down than go up, at least that's my takeaway from the market at the moment, it seems like the only caveat that is out there is that the new bond doesn't have this operating cash flow covenant that the old one had, which basically implies that you might not be that confident with future operating cash flow development so that some breach of that covenant might be or might have been in the cards in the foreseeable future. That would be my takeaway. But I guess you can easily talk me out of that assumption and give me a better reason for that exchange. And given that we are looking for interest rates to rather go down than go up, at least that's my takeaway from the market at the moment, it seems like the only caveat that is out there is that the new bond doesn't have this operating cash flow covenant that the old one had, which basically implies that you might not be that confident with future operating cash flow development so that some breach of that covenant might be or might have been in the cards in the foreseeable future. and given that we are looking for interest rates to rather go down than go up at least that's my takeaway from the market at the moment it seems like the only caveat that is out there is that the new bond doesn't have this operating cash flow covenant that the old one had which basically implies that you might not be that confident with future operating cash flow development so that some breach of that covenant might be or might have been in the cards in the foreseeable future That would be my takeaway. that would be my takeaway But I guess you can easily talk me out of that assumption and give me a better reason for that exchange. but i guess you can easily talk me out of that assumption and give me a better reason for that exchange

Speaker 2: Oliver, I wouldn't subscribe to that fully. Oliver, I wouldn't subscribe to that fully. oliver i wouldn't subscribe to that fully For us, the main reason really was that the old hybrid was dated from 2005 and was, at the time, one of the first ones, but now was also the last one. So it was my objective to really modernize the entire financial situation of the balance sheet. That means I wanted to review and modernize together with my team the entire financing. This is, you have to put this into context of the entire refinancing. We did more than EUR 2 billion refinancing in the last months. So this was very successful. We issued, as I said, the new EUR 500 million senior bond. We did modernize the revolving credit facility with our core banks, increasing that from EUR 600 million to EUR 800 million. We still have in place the commercial paper EUR 600 million is still in place. We have the senior bond. For us, the main reason really was that the old hybrid was dated from 2005 and was, at the time, one of the first ones, but now was also the last one. for us the main reason really was that the old hybrid was dated from 2005 and was at the time one of the first ones but now was also the last one So it was my objective to really modernize the entire financial situation of the balance sheet. so it was my objective to really modernize the entire financial situation of the balance sheet That means I wanted to review and modernize together with my team the entire financing. that means i wanted to review and modernize together with my team the entire financing This is, you have to put this into context of the entire refinancing. this is you have to put this into context of the entire refinancing We did more than EUR 2 billion refinancing in the last months. we did more than eur 2 billion refinancing in the last months So this was very successful. so this was very successful We issued, as I said, the new EUR 500 million senior bond. we issued as i said the new eur 500 million senior bond We did modernize the revolving credit facility with our core banks, increasing that from EUR 600 million to EUR 800 million. we did modernize the revolving credit facility with our core banks increasing that from eur 600 million to eur 800 million We still have in place the commercial paper EUR 600 million is still in place. we still have in place the commercial paper eur 600 million is still in place We have the senior bond. we have the senior bond We have the hybrid bond. We put into place a factoring program, so we modernized everything, and part of this modernization was the hybrid. And I'm very happy to have this new EUR 700 million hybrid bond now on the balance sheet, which is fully in line with all the other hybrid bond structures which we see, so it's part of a modernization of the entire balance sheet. This really puts us in a good position going forward. The entire refinancing is done, and so this is positive. We have the hybrid bond. we have the hybrid bond We put into place a factoring program, so we modernized everything, and part of this modernization was the hybrid. we put into place a factoring program so we modernized everything and part of this modernization was the hybrid And I'm very happy to have this new EUR 700 million hybrid bond now on the balance sheet, which is fully in line with all the other hybrid bond structures which we see, so it's part of a modernization of the entire balance sheet. and i'm very happy to have this new eur 700 million hybrid bond now on the balance sheet which is fully in line with all the other hybrid bond structures which we see so it's part of a modernization of the entire balance sheet This really puts us in a good position going forward. this really puts us in a good position going forward The entire refinancing is done, and so this is positive. the entire refinancing is done and so this is positive

Speaker 1: I get that modernization sounds very positive, but what is actually the advantage for Südzucker from the new hybrid bond versus the old one? What is, in those terms, more modern than the old one was? I get that modernization sounds very positive, but what is actually the advantage for Südzucker from the new hybrid bond versus the old one? i get that modernization sounds very positive but what is actually the advantage for südzucker from the new hybrid bond versus the old one What is, in those terms, more modern than the old one was? what is in those terms more modern than the old one was

Speaker 2: The modernization of the hybrid bond now is fully in line with all the other hybrids in place, so it has no more a cash flow trigger. So it's fully in line with the others. And for sure, this is an advantage not having the cash flow trigger. The modernization of the hybrid bond now is fully in line with all the other hybrids in place, so it has no more a cash flow trigger. the modernization of the hybrid bond now is fully in line with all the other hybrids in place so it has no more a cash flow trigger So it's fully in line with the others. so it's fully in line with the others And for sure, this is an advantage not having the cash flow trigger. and for sure this is an advantage not having the cash flow trigger

Speaker 1: Okay. So it is the cash flow trigger that is the advantage not to have it. Okay. okay So it is the cash flow trigger that is the advantage not to have it. so it is the cash flow trigger that is the advantage not to have it

Speaker 2: That's what you said. That's not what I said. That's what you said. that's what you said That's not what I said. that's not what i said

Speaker 1: What did you say? What did you say? what did you say

Speaker 2: Okay. Let's leave it like that. Okay. okay Let's leave it like that. let's leave it like that

Speaker 1: Okay. Thank you very much for that. And lastly, and I promise that's my last question, could you talk me through the bridge from the EBITDA to expected net debt level? Given the fact that after the first six months of the current fiscal year, we saw an increase in net debt by give or take 20 million EUR, you are aiming for a net debt level of 1630, which is basically currently around 40 million lower than the current level. Okay. okay Thank you very much for that. thank you very much for that And lastly, and I promise that's my last question, could you talk me through the bridge from the EBITDA to expected net debt level? and lastly and i promise that's my last question could you talk me through the bridge from the ebitda to expected net debt level Given the fact that after the first six months of the current fiscal year, we saw an increase in net debt by give or take 20 million EUR, you are aiming for a net debt level of 16 30, which is basically currently around 40 million lower than the current level. given the fact that after the first six months of the current fiscal year we saw an increase in net debt by give or take 20 million eur you are aiming for a net debt level of 16 30 which is basically currently around 40 million lower than the current level Your guidance is EUR 100 million-EUR 200 million for the full year. So that gives you EUR 50 million-EUR 150 million additional EBIT for the full year. Could you talk me through that stabilizes the bridge from that increasing EBIT, especially in the second half of this year, to the changes in net debt? Are we expected to see an increase, so some reversal of working capital in the second half of this year, especially as Südzucker tends to pay its sugar beet farmers for the harvest in the second half of this year? Thank you. Your guidance is EUR 100 million-EUR 200 million for the full year. your guidance is eur 100 million-eur 200 million for the full year So that gives you EUR 50 million-EUR 150 million additional EBIT for the full year. so that gives you eur 50 million-eur 150 million additional ebit for the full year Could you talk me through that stabilizes the bridge from that increasing EBIT, especially in the second half of this year, to the changes in net debt? could you talk me through that stabilizes the bridge from that increasing ebit especially in the second half of this year to the changes in net debt Are we expected to see an increase, so some reversal of working capital in the second half of this year, especially as Südzucker tends to pay its sugar beet farmers for the harvest in the second half of this year? are we expected to see an increase so some reversal of working capital in the second half of this year especially as südzucker tends to pay its sugar beet farmers for the harvest in the second half of this year Thank you. thank you

Speaker 7: So this is Andreas speaking. Maybe I can comment on when it comes to the operating cash flow to start there. As you indicated, results are down. But we are also expecting a significant reduction, which already started, and in the first half, a significant reduction in our net working capital. So this is Andreas speaking. so this is andreas speaking Maybe I can comment on when it comes to the operating cash flow to start there. maybe i can comment on when it comes to the operating cash flow to start there As you indicated, results are down. as you indicated results are down But we are also expecting a significant reduction, which already started, and in the first half, a significant reduction in our net working capital. but we are also expecting a significant reduction which already started and in the first half a significant reduction in our net working capital You have also seen that within the first half year, the CapEx levels are lower than in previous years. That trend should continue also in the second half of the current fiscal year, and the combination of those things should come out in a way that our net financial debt position by the end of the year, we expect to be rather in the ballpark of what we had by the end of 2024, 2025, so the lower operating result should be compensated basically by the net working capital, and obviously, the dividends, when it comes to what we paid on dividends this year, it's also a much lower number than in previous years. You have also seen that within the first half year, the CapEx levels are lower than in previous years. you have also seen that within the first half year the capex levels are lower than in previous years That trend should continue also in the second half of the current fiscal year, and the combination of those things should come out in a way that our net financial debt position by the end of the year, we expect to be rather in the ballpark of what we had by the end of 2024, 2025, so the lower operating result should be compensated basically by the net working capital, and obviously, the dividends, when it comes to what we paid on dividends this year, it's also a much lower number than in previous years. that trend should continue also in the second half of the current fiscal year and the combination of those things should come out in a way that our net financial debt position by the end of the year we expect to be rather in the ballpark of what we had by the end of 2024 2025 so the lower operating result should be compensated basically by the net working capital and obviously the dividends when it comes to what we paid on dividends this year it's also a much lower number than in previous years

Speaker 1: Okay. Maybe I didn't make myself clear that much. Sorry for that. I was specifically asking for the developments in H2. So you've got EUR 50 million, let's say, EBIT under your belt, give or take, for the first half year. Your guidance is out there for EUR 100-200 million. That gives you a residual number for the second half year of EUR 50-150 million in EBIT. Currently, your net debt is up compared to the beginning of the fiscal year by EUR 40 million. Okay. okay Maybe I didn't make myself clear that much. maybe i didn't make myself clear that much Sorry for that. sorry for that I was specifically asking for the developments in H2. i was specifically asking for the developments in h2 So you've got EUR 50 million, let's say, EBIT under your belt, give or take, for the first half year. so you've got eur 50 million let's say ebit under your belt give or take for the first half year Your guidance is out there for EUR 100-200 million. your guidance is out there for eur 100-200 million That gives you a residual number for the second half year of EUR 50-150 million in EBIT. that gives you a residual number for the second half year of eur 50-150 million in ebit Currently, your net debt is up compared to the beginning of the fiscal year by EUR 40 million. currently your net debt is up compared to the beginning of the fiscal year by eur 40 million But by the end of the fiscal year, we are looking for basically the same level as last year. And I was just wondering, how does that compute, given that you just said CapEx will be lower compared to last year and working capital releases might continue in the second half of this year? How does that compute with coming up with net financial debt on the same level as last year? Thank you. But by the end of the fiscal year, we are looking for basically the same level as last year. but by the end of the fiscal year we are looking for basically the same level as last year And I was just wondering, how does that compute, given that you just said CapEx will be lower compared to last year and working capital releases might continue in the second half of this year? and i was just wondering how does that compute given that you just said capex will be lower compared to last year and working capital releases might continue in the second half of this year How does that compute with coming up with net financial debt on the same level as last year? how does that compute with coming up with net financial debt on the same level as last year Thank you. thank you

Speaker 7: So we expect a continuation of our working capital, let's say, improvement process that we indicated or that we already started. And that should contribute, or this is our expectation, that this contributes to offsetting the low operating results. And again, when it comes to CapEx also, in the second half of this year, the number is not as significant. Dividends are already paid. So when it comes to the balance of our net debt position, that is in line with what we see in the numbers, yeah. So we expect a continuation of our working capital, let's say, improvement process that we indicated or that we already started. so we expect a continuation of our working capital let's say improvement process that we indicated or that we already started And that should contribute, or this is our expectation, that this contributes to offsetting the low operating results. and that should contribute or this is our expectation that this contributes to offsetting the low operating results And again, when it comes to CapEx also, in the second half of this year, the number is not as significant. and again when it comes to capex also in the second half of this year the number is not as significant Dividends are already paid. dividends are already paid So when it comes to the balance of our net debt position, that is in line with what we see in the numbers, yeah. so when it comes to the balance of our net debt position that is in line with what we see in the numbers yeah

Speaker 2: Maybe it's a little lost. We are running out of time. So maybe we can postpone it to a later moment. But what you can take is, for the minutes, we do foresee that net financial debt at the end of this fiscal should be roughly in line with last year, yeah. Maybe it's a little lost. maybe it's a little lost We are running out of time. we are running out of time So maybe we can postpone it to a later moment. so maybe we can postpone it to a later moment But what you can take is, for the minutes, we do foresee that net financial debt at the end of this fiscal should be roughly in line with last year, yeah. but what you can take is for the minutes we do foresee that net financial debt at the end of this fiscal should be roughly in line with last year yeah

Speaker 1: But isn't that very conservative? But isn't that very conservative? but isn't that very conservative

Speaker 2: Shouldn't it be lower than that given the? Yeah. I think we have to stop it. I mean, our assumption is, at the end of the day, we strive for having net financial debt on the same level like last year. Shouldn't it be lower than that given the? shouldn't it be lower than that given the Yeah. yeah I think we have to stop it. i think we have to stop it I mean, our assumption is, at the end of the day, we strive for having net financial debt on the same level like last year. i mean our assumption is at the end of the day we strive for having net financial debt on the same level like last year

Speaker 1: Got it. Thank you very much. Got it. got it Thank you very much. thank you very much

Speaker 2: Thank you. Thank you. thank you

Speaker 4: Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Andreas Rother for any closing remarks. Ladies and gentlemen, that was the last question. ladies and gentlemen that was the last question I would now like to turn the conference back over to Andreas Rother for any closing remarks. i would now like to turn the conference back over to andreas rother for any closing remarks

Speaker 7: Thank you very much. And thank you very much to all of you for your participation and your interest in Südzucker. Also, thank you very much for your questions. As Stephan already indicated, when it comes to additional questions that should come up in the aftermath of this call, we, as the investor relations department, are always available via phone or email at any time. Obviously, we are trying our best to come back to you as quick and fast as possible. Presentation of the Q3 figures will be held in the beginning of January 2026. Until then, I wish you all the best. Stay safe and take care, and talk to you soon. Thank you very much. Thank you very much. thank you very much And thank you very much to all of you for your participation and your interest in Südzucker. and thank you very much to all of you for your participation and your interest in südzucker Also, thank you very much for your questions. also thank you very much for your questions As Stephan already indicated, when it comes to additional questions that should come up in the aftermath of this call, we, as the investor relations department, are always available via phone or email at any time. as stephan already indicated when it comes to additional questions that should come up in the aftermath of this call we as the investor relations department are always available via phone or email at any time Obviously, we are trying our best to come back to you as quick and fast as possible. obviously we are trying our best to come back to you as quick and fast as possible Presentation of the Q3 figures will be held in the beginning of January 2026. presentation of the q3 figures will be held in the beginning of january 2026 Until then, I wish you all the best. until then i wish you all the best Stay safe and take care, and talk to you soon. stay safe and take care and talk to you soon Thank you very much. thank you very much