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Sugar : mission


Cristal Union – a true cooperative
2 Mt
of beet-based sugar

500 kt
of refined sugar

300 km3
of alcohol

10 000 180 000 1500

350 km3 cooperative hectares clients
of bioethanol
2 bln € members
turnover 2000 18 production 70 countries
employees sites served
700 kt
of dehydrated
product for
animal feed
After the post quota euphoria, the hangover
World market and EU prices ($/t) Listed EU producers share prices (index 100)

• EU prices collapsed more than world market

• Worst ever financial performance for most EU producers

EU sugar yields among the best
Sugar yields in key countries (t/ha) EU vs CS Brazil sugar yields (t/ha)

• EU sugar yields above other key exporters

• Gap is increasing

With a significant heterogeneity though
Sugar yields per country in the EU (t/ha) Yield distribution within Cristal Union (t/ha)

33% > 15 t/ha

12% > 17 t/ha

• 5-15% of EU beet regions structurally uncompetitive

• Significant upside potential even in most competitive regions

Beet competes with other crops
Sugar and wheat prices (index 100) Yields correlation in France (beet and wheat)

• Beet = hedge for farmers (relative to other crops)

• Beet provided better returns than alternatives for years…

EU sugar factories not larger than competition
Factory capacity in key countries (kt/year) EU average production per factory (kt/year)

• Increasing production capacity of EU factories

• But EU factories are trailing behind CS Brazil mills

Heterogeneity of the EU sugar industry
Factory capacity per country (kt/year) Variable cost of production ($/t eq. LDN#5)

• Heterogeneity in terms of scale and production costs

• 20% plants with structural competitive disadvantages

Sugar/ethanol flexibility for some producers
% of beet used for ethanol in France Sugar and ethanol prices (€/t eq. LDN#5)

• Arbitrage based on sugar/ethanol prices now possible

• Beet based ethanol production mainly in France

EU sugar market is mature
EU Sugar and HFS demand (Mt) HFS cost of production and sugar prices (€/t)

• Flat EU sugar consumption

• HFS not competing with current EU sugar prices

Most EU producers in sound financial shape

EBITDA(*) of 3 largest EU producers (€/t sugar) Net financial debt / (cash) of largest EU producers

• Most producers are resilient to current market conditions

• But major disparities between producers, regions and factories

(*) Yearly restated EBITDA of their EU sugar segment

Some EU sugar producers are very diversified
EU sugar % of net sales Bonds yields (2023) of 2 major EU producers

• Different diversification strategies (from 0% to 88% of net sales)

• Diversification successful most of the time but not always

A challenging regulatory and political context

• Increasing public questioning of the EU food and agri models?

Environmental constraints, long term consumption trend

• More and more distortions of competition in and outside EU?

Export subsidies, direct payment, neonics…

• Outcomes on Brexit?
800 kt deficit market…

Restructuring / consolidation likely to occur
Evolution of EU(28) sugar plants EU(28) sugar supply and demand (Mt)

• Post-quota market conditions leading to another restructuring wave

• Concentration and growth in most competitive regions

Beginning a new chapter of Cristal Union story

Bazancourt 1960: 50 kt, 7 t/ha Bazancourt today: 350 kt,14 t/ha Bazancourt 2025

450 kt of sugar/ethanol
18 t of sugar per ha

• Long lasting golden age for EU producers is over : welcome to the real world!
⇒ Significant changes in the EU sugar sector to come

• Cristal Union has strong competitive advantages thanks to its agricultural roots in
one of the most competitive region in the world
⇒ Our cooperative structure makes it easier to achieve long term goals

Ready to serve you through CRISTALCO

• Cristalco : your business partner for sugar and alcohol usages worldwide
• Origins : France - Algeria - Croatia - Mauritius - Italy - Guadeloupe

Thank you for your attention