Nordzucker Post - 3 July 2020

2019/20 financial year: Result improved – outlook good despite Corona

Dear Readers,

Beet growing has a future. Beet growers in Germany have signed more than 85 per cent of the sugar beet delivery contracts from 2021 onwards as multi-year contracts. This will secure beet supplies for the next three years.

In Europe, sugarbeet sowing this year was carried out according to plan despite the corona pandemic. There has been more rain in the Scandinavian growing regions than in regions characterized by a continental climate. The beet situation is correspondingly varied.

Campaign preparations at the plants are proceeding according to plan and the necessary material is generally available. The hygiene and clearance regulations that are still necessary have been established and will be adapted to the situation during the campaign.

On the world market, the corona pandemic has been creating new conditions for the time being since early March. Together with the massive drop in oil prices, sugar prices on the world market have also slumped.

In Europe, we expect a relatively small impact on demand and thus largely stable prices due to an approximately balanced market. Our clear goal is and remains to generate positive results again in the current financial year.

Thanks to the enormous commitment of our employees, we have been able to meet the sudden increase in demand in March in all countries. Many of our customers have expressly thanked us for this. They highly appreciate our reliability and the quality of our products and services.

In Australia, Mackay Sugar Ltd. (MSL) will start the first campaign, the “crushing season”, at the beginning of June, completely under our responsibility. Following our entry into cane sugar production last year, the first investment measures were implemented. We expect a roughly average harvest during the processing period of about six months.

In financial year 2019/20, we achieved a better result than could have been expected after the extreme drop in prices last year, although it still represents a loss. Our measures to improve earnings are taking effect. Our detailed report on the past financial year can be found at www.nordzucker.com .

At the Annual General Meetings, we will report directly on the status and outlook for the company. Due to the current situation, we have postponed them until October 2020. We hope that it will then be possible to hold a presence event again. In addition, we want to give our shareholders the opportunity for the first time to participate in the events online. We look forward to your interest.

With all good wishes

Your

Lars Gorissen