Interim Report First Half 2014 Press Conference...Interim Report First Half 2014 Press Conference...

Interim Report First Half 2014 Press Conference Munich, 7 August 2014

Klaus Josef Lutz, CEO

Andreas Helber, CFO

7 August 2014 BayWa AG

Agenda

1. Development of the Group in the first half of 2014

2. Development of the Segments in the first half of 2014

3. Outlook for FY 2014

BayWa AG

Development of the Group First half 2014

7 August 2014

Development of the Group H1/2014 Summary

BayWa AG

Highlights Specification of internationalisation strategy for Agriculture: - Apollo acquisition in NZ; earnings contribution following the approval of antitrust authorities (Q3) - BayWa Agrar International B.V. in the Netherlands - Setup up of Risk Governance / IT Restructuring Building Materials: Transfer of NRW & Rhinel.-Palatinate incl. 555 employees in Q2 Group-wide reduction of 750 employees Expansion of solar project business to the USA (acquisition of Martifer Solar USA, Inc.)

Revenues in EUR million Operating EBIT in EUR million

7 August 2014

7,691.0 8,272.8

H1 2014 H1 2013

-7.0% -9.2%

101.0

H1 2014 excl. special effects

H1 2013 excl. special effects

91.7


Development of the Group H1/2014 Revenues and EBIT as against previous year

EBIT – EUR 62.1 m (Δ 13/14 EUR -95.1 m / -60.5 %)

– H1/2013 includes special effects from the disposal of

3 real estate portfolios – Special effects H1/2014: restructuring costs from

portfolio streamlining in the Building Materials Segment

Revenues – EUR 7,691.0 m (Δ 13/14: EUR -581.8 m / -7.0 %)

– Price- and volume-induced decline in revenues in Agriculture and conventional Energy – Revenue growth of BayWa r.e.

in EUR m

in EUR m

-7.0%

H1 2014

7,691.0

H1 2013

8,272.8

-60.5%

62.1

H1 2014 H1 2013

157.2

BayWa AG

Development of the Group H1/2014 Multi-year comparison of EBIT

in EUR m

7 August 2014

72.5%

Operating result

2.7%

Other Activities

H1 2014

57.5%

91.7

-9.2%

-29.6

H1 2013

101.0

56.2

H1 2012 H1 2011 H1 2010

56.3

91.1 88.7

Other Activities

BayWa AG

Development of the Group H1/2014 Expansion progress

BayWa excluding companies acquired from 2009 onwards

BayWa including companies aquired from 2009 onwards

EBIT (in EUR m)

BayWa excl. acquisitions

BayWa incl. acquisitions

+183.6%

H1 2014

62.1

H1 2014

21.9

7 August 2014

Development of the Group H1/2014 Key Financials – Income Statement


Group in EUR m H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 ∆13/14 (%)

Revenues 3,777.7 4,586.2 5,131.3 8,272.8 7,691.0 -7.0%

EBITDA 104.3 136.3 147.1 213.8 120.2 -43.8%

% of Revenues 2.8% 3.0% 2.9% 2.6% 1.6%

EBIT 56.3 88.7 91.1 157.2 62.1 -60.5%

% of Revenues 1.5% 1.9% 1.8% 1.9% 0.8%

EBT 35.9 66.5 62.3 130.4 32.8 -74.8%

% of Revenues 1.0% 1.5% 1.2% 1.6% 0.4%

Consolidated net income 28.1 48.7 47.0 99.0 25.4 -74.3%

Share of minority interest 8.1 11.7 17.5 16.7 12.5 -25.1%

as % of net income 28.8% 24.0% 37.2% 16.9% 49.2%

Share of owners of parent company 20.0 37.0 29.5 82.3 12.9 -84.3%

as % of net income 71.2% 76.0% 62.8% 83.1% 50.8%

Earnings per share (EPS) in EUR 0.59 1.08 0.86 2.39 0.37 -84.5%

BayWa AG

Development of the Segments First half 2014

7 August 2014

BayWa AG

Agriculture Segment H1/2014

Seed

Fertilisers

Crop protection

Grain

Feedstuff

Agricultural equipment

Fruit

7 August 2014

Agriculture Segment H1/2014 Market Developments


Market Trends

World Grain Balance (July 2014)

in million tons

− High forecasts for global grain harvest − Grain volume in Germany > 48 MT ( previous

year: 47.4 MT) − High harvest expectations put producer prices

under pressure (wheat price -19 % since April 2014)

− Another record high anticipated for global oilseed supply 2014/15; downturn in soya prices (-20 % since June 2014)

− Price declines result in farmers' unwillingness to sell and market the harvest

− Early start to the season boosts demand for fertilisers and crop protection

− Tractor registration figures marginally down on previous year's record level (-1.8 %)

− NZ apple harvest almost repeats good year-earlier volume; expectations of EU fruit higher y/y due to favorable weather

Sources: DRV, IGC, Copa, Coceral, ACTI, ZMP, Strategie grains, BayWa

Production Consumption Closing balance

*) 2014/15 Forecast


H1 2013

EBIT

H1 2014

42.4 59.5

-28.7%

Agriculture Segment H1/2014 Revenues and EBIT as against previous year

Agricultural Trade

4,880.0

Revenues

-10.5%

4,367.3

In EUR m

Revenues: ∆ 13/14 EUR -512.7 million EBIT: ∆ 13/14 EUR -17.1 million Volume- and price-induced revenue decline Prices for gene-free soybean meal under pressure Lower trading margins


H1 2014

11.2

H1 2013

9.7

+15.5%

EBIT

Agriculture Segment H1/2014 Revenues and EBIT as against previous year

Agricultural Equipment

-0.5%

Revenues

648.7 652.1

In EUR m

Revenues: ∆ 13/14 EUR -3.4 million EBIT: ∆ 13/14 EUR +1.5 million

Revenues at high year-earlier level Used machinery sales growth (+6% y/y) Stable service-business

-31.0%

EBIT

H1 2014

12.7

H1 2013

18.4

Fruit

-11.4%

Revenues

268.2 302.7

in EUR m

Revenues: ∆ 13/14 EUR -34.5 million EBIT: ∆ 13/14 EUR -5.7 million

"Enza Foods" restructuring burdens result "FCC" disposal (fruit boxes) not realised Earnings contribution of Apollo Apples Ltd not yet

included

Agriculture Segment H1/2014 Key Financials – Income Statement


Agriculture

in EUR m H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 ∆13/14 (%)

Revenues 1,732.7 2,277.3 2,573.7 5,834.9 5,284.2 -9.4%

EBITDA 55.4 90.6 90.3 112.5 92.2 -18.0%

% of Revenues 3.2% 4.0% 3.5% 1.9% 1.7%

EBIT 36.2 71.8 68.5 87.5 66.2 -24.3%

% of Revenues 2.1% 3.2% 2.7% 1.5% 1.3%

EBT 23.5 59.5 50.9 69.4 44.5 -35.9%

% of Revenues 1.4% 2.6% 2.0% 1.2% 0.8%

BayWa AG

Energy Segment H1/2014

Fuels

Heating Oil

Lubricants

Solid Biofuels

BayWa r.e.

7 August 2014

− Price niveau for heating oil in 2014 continuously lower y/y

− Weather-induced modest demand for heating oil and wood pellets

− Lubricants and fuel sales higher y/y

− 20 % of global energy consumption already sourced from renewable energies

− Global record high (approx. 40 GW) in PV installed capacity in 2014 anticipated; China, Japan & UK as drivers

− Increase in US investment in wind power foreseeable owing to extension of tax credits; in 2014 global installed capacity of 45 GW expected

− Legislative amendment stabilises general conditions for renewable energies in Germany

Energy Segment H1/2014 Market Developments


Market Trends

Wind farm Brahms (19.8 MW), New Mexico, USA


Conventional Energy

Revenues: ∆ 13/14 EUR -178.5 million EBIT: ∆ 13/14 EUR -4.4 million Downturn in heating business (price- and

volume induced) Fuel margins under pressure due to high price

volatility Weak performance in Austria

-12.1%

Revenues

1,299.2 1,477.7

-86.3%

EBIT

H1 2014

0.7

H1 2013

5.1

Renewable Energy

188.7 Revenues

+62.3% 306.3

Revenues: ∆ 13/14 EUR +117.6 million EBIT: ∆ 13/14 EUR +4.2 million Strong expansion of international project

business (wind & solar) High competitive pressure in European PV trade;

consolidation ongoing Sale of solar park (19.5 MW) and 2 wind farms

(38.2 MW) in Q2

In EUR m In EUR m

Energy Segment H1/2014 Revenues and EBIT as against previous year

+33.3%

EBIT

H1 2014

12.6

H1 2013

16.8

Energy Segment H1/2014 Key Financials – Income Statement


Energy

in EUR m H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 ∆13/14 (%)

Revenues 1,087.2 1,253.4 1,684.1 1,666.4 1,605.5 -3.7%

EBITDA 18.9 8.6 29.9 33.3 33.5 0.6%

% of Revenues 1.7% 0.7% 1.8% 2.0% 2.1%

EBIT 13.3 1.0 15.9 17.7 17.5 -1.1%

% of Revenues 1.2% 0.1% 0.9% 1.1% 1.1%

EBT 12.0 -1.5 8.5 11.0 9.4 -14.5%

% of Revenues 1.1% -0.1% 0.5% 0.7% 0.6%

BayWa AG

Building Materials Segment H1/2014

Building Materials

7 August 2014

BayWa AG

Building Materials Segment H1/2014 Market Developments

7 August 2014

Market Trends

− Mild winter leads to early and dynamic start to the building season

− Forecast for commercial construction revenues up 1 % to revenue growth of 4.5 % in 2014

− Residential construction as a growth engine: number of residential building permits in Germany climbs by 8.1 % y/y

− Economic growth creates more scope for public infrastructure spending

− Construction investment still favoured by historically low interest rate environment

− Momentum in the sector likely to slow in summer due to high capacity utilisation since the start of the year and the holiday period

Source: ifo Institut; Statistisches Bundesamt, * Forecast (as of June 2014)

Building Investments in Germany (Δ y/y in %)

2012

2013

2014*

-10.1 -2.1

1.1

4.0

3.2

-0.3

5.1

4.0

-1.7 0.3

0.0

-1.4

Residential Construction

Public-sector Construction Commercial Construction

Total Investments


Building Materials (H1/2013 adjusted) In EUR m

Revenues: ∆ 13/14 EUR +40.5 million EBIT: ∆ 13/14 EUR +7.2 million Figures in H1/2013 adjusted for disposals in

NRW & Rhineland-Palatinate

Revenues: ∆ 13/14 EUR -41.5 million EBIT: ∆ 13/14 EUR +12.2 million No further burden on the result from loss-making

locations in NRW & Rhineland-Palatinate in H1/2014

Building Materials Segment H1/2014 Revenues and EBIT as against previous year

> +100%

EBIT

H1 2014

8.0

H1 2013

0.8

Revenues

684.4 724.9

+5.9%

8.0

> +100%

-4.2

H1 2014

H1 2013

EBIT

724.9 766.4 -5.4%

Revenues

- Increase in revenues and earnings due to growth in civil engineering and building construction (residential) - Greater demand for higher-margin gardening product portfolio

Building Materials (H1/2013 not adjusted) In EUR m

Building Materials Segment H1/2014 Key Financials – Income Statement


Building Materials

in EUR m H1 2010 H1 2011 H1 2012 H1 2013 H1 2014* ∆13/14 (%)

Revenues 872.8 978.5 813.0 766.4 724.9 -5.4%

EBITDA 17.1 27.2 14.1 2.3 13.2 > 100%

% of Revenues 2.0% 2.8% 1.7% 0.3% 1.8%

EBIT 3.0 13.2 4.1 -4.2 8.0 > 100%

% of Revenues 0.3% 1.3% 0.5% -0.5% 1.1%

EBT -2.9 7.0 -0.2 -7.0 4.4 > 100%

% of Revenues -0.3% 0.7% 0.0% -0.9% 0.6%

* 2014 excluding the activities of sold locations in NRW and Rhineland-Palatinate (transfer of ownership in Q2)


Other Activities H1/2014 Revenues and EBIT as against previous year

In EUR m

Revenues: ∆ 13/14 EUR +71.3 million EBIT: ∆ 13/14 EUR -85.8 million

Revenues include building material activities in the locations in NRW and Rhineland-Palatinate

EBIT comprises earnings contributions and disposal-losses from restructuring Building Materials and rental expenses (one-time effect from real estate disposals in H1/2013)

> +100%

76.4

5.1 Revenues

> -100%

-29.6

H1 2014 H1 2013

56.2

EBIT

BayWa AG

Outlook for FY 2014

7 August 2014

Outlook for FY 2014

− Global harvest forecast underpins expectations of higher grain selling potential − Agricultural commodity prices should bottom out in H2; growing willingness to market

and buy grain & oilseeds anticipated − Fertiliser price trend likely to encourage upfront buying − Stable business in agri equipment expected; demand growth in farm/animal equipment − Large harvest volumes & good fruit quality in NZ and EU harbours sales opportunities in

Asia and North Africa

ENERGY

BUILDING MATERIALS

− German economic growth boosts fuel and lubricants business − Growing demand for sources of heating anticipated in H2 − Sale of the 57.4 MW "La Coste" Solar Park in France planned − Acquisitions in the USA and Scandinavia strengthen BayWa r.e.'s project pipeline − Amendment of Renewable Energies Act stabilises general conditions for renewable

energies in Germany

BayWa AG 7 August 2014

E ENERGY

BUILD. MAT.

Outlook 2014

− Good construction activity likely to hold steady through to year end; low interest rate level continues to boost investment in real estate

− Annual sector forecast revised upwards: 4% increase in revenues (nominal) in 2014 − Higher-margin warehouse business often stronger in H2 − Several sales campaigns planned in H2

AGRICULTURE

AGRICULTURE

Thank you for your attention The information in this presentation is partly made up of forward-looking statements which are based on assumptions and are subject to unforeseeable risks. In as much as the assumptions on the successful integration of acquisitions and on the internal growth of the company should prove to be inaccurate, or should other unforeseeable risks occur, the possibility of the assets, financial position and results of operations of the Group diverging negatively from the target figures cited in this presentation should not be discounted. BayWa AG can therefore undertake no guarantee that the actual development of the net worth, financial position and results of operations of the Group will concur with the target figures described in this presentation.

Interim Report First Half 2014 Press Conference...Interim Report First Half 2014 Press Conference...

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