Management Report - Nordzucker AG

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Management Report Nordzucker AG 18 To account for the unexpected high declassification in the previous year, we decided to cut quota sugar exports. Household Sugar For 2003, Nordzucker recorded highly satisfactory increases in household sugar sales over the last year’s figures. The increase is attributed to new customers, optimised measures, and the successful launch of new products. In the year under review we carried out the first category-management project – in cooperation with a trading firm – with excellent results. This move shows Nordzucker’s willingness to comply more directly with the requirements of its commercial clients. Liquid Sugar Liquid sugar sales have maintained the previous year’s level. Demand in the beverage industry for this product dropped after the deposit system on cans was introduced in Germany on 1 January 2003. This drop was compensated for by peak demands in the extreme summer of 2003. Molasses Because of the weak standing of the US dollar and declining demands, the market for molasses saw a negative trend in the year under review. Favourable preliminary agreements allowed us to secure satisfactory prices in spite of this trend. However, altogether proceeds remained below the previous year’s results. Pellets The price increase in the feed market proved to be favourable for us. Because of the extreme summer drought, grain growers turned in a much poorer harvest. Pellets profited from rising prices for grain and expensive substitutes. Proceeds increased by one percent over the previous year. Human Resources As a result of the integration of the Nordstemmen plant as of 1 March 2003 and the takeover of the staff from both Nordzucker GmbH & Co. KG and the computer centre (Rechenzentrum Zucker), the staffing level of Nordzucker AG has risen to 1,559 (1,392) on an annual average. First measures have been taken to adjust the staffing level of the Nordstemmen plant to the normal Nordzucker standard. These include an early retirement and pre-retirement part-time scheme, as well as conversion to threeshift operation during the campaign. In addition, we have proceeded with the early retirement and pre-retirement parttime schemes for the company as a whole to reduce the payroll as scheduled. The consolidated companies had a total of 3,758 (3,475) members of staff on their payroll. Closure of the Schleswig Plant The Schleswig plant was closed after the 2003 campaign as resolved by the supervisory board on 19 March 2003. In keeping with our internal “alliance for work” agreed in 1997/1998, all 138 regular employees affected by the closure were
offered a job at one of the other Nordzucker locations. When their contracts have terminated, employees who have not taken up this opportunity can opt to attend a continuing education college for a period of up to one year to develop their knowledge and professional skills. Trainees who have started their traineeship at Schleswig have been given the chance to complete their training either at another Nordzucker location or with another employer in the Schleswig region. Staff Profit-Sharing Scheme In the year under review, the share rose to about Euro 1,650 (1,300) per employee of the Nordzucker AG workforce. This is calculated on the basis of the annual surplus achieved for the group. In the period under review, the effect of the reclassification of the special item was added to the consolidated annual surplus in determining the profit-sharing assessment basis. This is to prevent the Nordzucker staff from being adversely affected by the revised accounting regulations. Safety at Work/Health Protection At a total of 10 (15) accidents requiring reports in the year under review, Nordzucker remained by far below the average in this sector of industry. We also consistently pursue our goal of “zero accidents” and low sick leave levels. In view of an increasing percentage of accidents to and from the place of work in 2003, one of our main activities was a road safety day which we organised together with the Sugar trade association at all Nordzucker locations. Brain Pool The Nordzucker brain pool was introduced in the year 2000. It is an instrument through which our employees continuously participate in the optimisation of in-company procedures. Proposals submitted in 2003 concerned improved safety at work and health protection as well as staff and customer satisfaction. Proposals also dealt with optimised production and maintenance processes. 502 of a total of 1,109 proposals were rated positively. Implementation of staff proposals allowed Nordzucker to effect net savings worth about Euro 153,000 in the year under review. The premiums paid out to the employees concerned amounted to Euro 65,000. Factory Group Work After the successful conclusion of the preparatory phase, group work during the maintenance period was launched at the Clauen plant in January 2004. The new work organisation scheme was developed under the “factory organisation” project and is to intensify staff integration as a means of improving the maintenance process. After the trial phase in the Clauen plant, the group work concept is to be implemented in the other factories beginning in 2005. The necessary preparations are already under way. Accidents requiring reports Nordzucker AG * 14 12 10 8 6 4 2. 0 15 15 10 2001/02 2002/03 2003/04 * 2001/02 incl. Nordkristall GmbH and ZVM GmbH * 2003/04 incl. Union-Zucker plant Nordstemmen Nordzucker 2003/2004 19
Page 1 and 2: Annual Report 2003/2004 Nordzucker
Page 3 and 4: The Group at a Glance Sales, includ
Page 5 and 6: Wir machen mehr daraus Managing Boa
Page 7 and 8: Schleswig plant. Good beet qualitie
Page 9 and 10: In talks in recent months with poli
Page 11 and 12: information furnished by the managi
Page 13 and 14: „Magyarország hamarosan érzéke
Page 15 and 16: capital into consideration for the
Page 17 and 18: particular for the Klein Wanzleben
Page 19 and 20: „Die EU-Erweiterung sehe ich sehr
Page 21: These were processed in the Warburg
Page 25 and 26: Fraunhofer Institut für Produktion
Page 27 and 28: local irrigation association holdin
Page 29 and 30: 25 ”With Poland joining the EU, I
Page 31 and 32: The unfavourable situation in this
Page 33 and 34: “I hope that my children will hav
Page 35 and 36: 1 October 2003, the company, which
Page 37 and 38: throughout the group documents the
Page 39 and 40: For this reason alone we expect the
Page 41 and 42: Liabilities A. Equity Capital I. Su
Page 43 and 44: Accrued Write-downs Book value Depr
Page 45 and 46: IV. Statement of Cash Flows Net inc
Page 47 and 48: Liabilities A. Equity Capital I. Su
Page 49 and 50: Accrued Write-downs Book value Depr
Page 51 and 52: IV. Statement of Cash Flows Net con
Page 53 and 54: income and allocated to equity capi
Page 55 and 56: tive 34 of the income tax regulatio
Page 57 and 58: tion 308, para. 3 Commercial Code).
Page 59 and 60: Taxes on income mainly fall on the
Page 61 and 62: Achim Fölster Member of the adviso
Page 63 and 64: 9.3. Sundry Details Remuneration fo
Page 65 and 66: Committees SUPERVISORY BOARD Shareh
Page 67 and 68: Heinrich Heimsoth Hassel Otto Henni
Page 69 and 70: Glossary Finance Cashflow Net inflo
Page 71: Contact Nordzucker AG Küchenstraß

Management Report - Nordzucker AG

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