CORPORATE STRATEGY

Our corporate strategy

The Group pursues a growth strategy oriented to the respective local market opportunities. Long-lasting, stable customer and supplier relationships, respectful treatment of all stakeholders and continual growth in the company’s value are major cornerstones of the corporate strategy, which is guided by the principles of sustainable management.

AGRANA’s aim is to provide both its globally operating and its regional customers worldwide with high product quality, optimum service and innovative product development ideas and expertise.

Our segments' strategic objectives

the strategic objectives
of our business segments

While AGRANA mainly operates within Europe in its Sugar and Starch segments, the operations of the group’s Fruit segment span the world. Our aim is to achieve a leading position among industrial players adding value to agricultural products.

Customer- and market-oriented growth

In the Sugar segment, AGRANA is very well positioned as a supplier in the Central, Eastern and Southeastern European countries. Through high quality standards, market service, an extensive sugar product portfolio, and by building the Group’s regional brands, AGRANA differentiates itself from the competition.

In addition to the goal of positioning sugar as a regional brand-name product, AGRANA continues to strive for full capacity utilisation everywhere (including yield improvement) and an intensification of marketing activities in Southeastern Europe. The Group’s own production of beet sugar is supplemented by the reselling and refining activities of AGRANA’s Sugar segment, especially in the Southeastern European countries with beet sugar deficits.

Organic growth and the creation of value-added in custom-made products

In the Starch segment, AGRANA focuses on highly refined specialty products. Innovative, customer-driven products supported by application advice and continuous product development, combined with cost optimisation, are the key to the segment’s success. An example is the leading position in organic starches and GMO-free1 starches for the food industry. As well, in the non-food sector, the Group is a leading supplier of specialty starches for the paper, textile, cosmetics, pharmaceutical and building materials industries.

AGRANA’s essential core competency –the large-scale processing of agricultural raw materials into industrial products –is also the basis for the bioethanol business. In Austria, AGRANA is the leading vendor of this climatefriendly fuel thanks to the bioethanol plant in Pischelsdorf, Austria. AGRANA’s general goal is to enhance value-added through the optimal utilisation of all residual components of agricultural raw materials as by-products.

 

Customer- and market-oriented global growth

In the Fruit segment, the Group’s business activities are fruit preparations (AGRANA Fruit, about 80% of the segment’s revenue) and fruit juice concentrates (AUSTRIA JUICE, about 20% of segment revenue):

 

AGRANA Fruit

Austria Juice

AGRANA Fruit produces custom fruit preparations for the dairy, ice cream and baking industries. With local production units in close proximity to customers, AGRANA is the world leader in this global market and intends to further expand its presence, follow its internationally operating customers into new markets and grow faster than the market.

AUSTRIA JUICE is a producer and reseller mainly of juice concentrates from apples, red fruits and berries. High quality is assured through manufacturing sites close to the crop-growing areas and by modern production facilities and frequent quality checks. The aim is to increase global sales into the beverage industry, including also the further expansion in not-fromconcentrate juices and fruit wines as well as in aromas and beverage bases.

 

 

the use of synergies

use of synergies

Thanks to our three business segments of Sugar, Starch and Fruit, we are able to generate synergies in procurement, production and marketing and can diversify business risks. Our customers benefit from our broad portfolio of high-quality products for a wide range of applications, both in the food and non-food sectors.

Our capital market strategy

long-term partnership with shareholders

The Group’s sound equity base gives AGRANA strategic flexibility. For its overall financing needs, AGRANA not only has the ability to self-finance but can draw on committed credit lines and the proceeds of a Schuldscheindarlehen (a loan with bond-like characteristics, sometimes translated as “bonded loan” or “promissory note loan”).

AGRANA sees its shareholders as long-term partners in realising the Group’s goals and offers them an attractive long-run return on investmentat a reasonable level of risk. With a policy of open and transparent communication, AGRANA aims to safeguard investors’ confidence in the Group and make its business performance and its management decisions predictable and easy to understand.

 

Our strengths

Our strengths

We retain a stable presence in our markets despite operating in volatile business environments. Why? Because we know how to optimally leverage synergies between our business divisions.

Long-lasting customer and supplier relationships

innovative
product development,
ideas and expertise

worldwide high
product quality &
optimum service

globally operating
& regional customers