Group Corporate Presentation 2019
As of May 2019 The BayWa Group At a Glance
Our Company
▪ Founded in Munich in 1923 ▪ Leading trading and services group ▪ Corporate culture based on cooperative roots ▪ Core segments of Agriculture, Energy and Building Materials ▪ Approximately 18,000 employees ▪ Over 3,000 locations in more than 40 countries ▪ Worldwide 313 affiliated companies ▪ Stock listed company
Investor Relations May 2019 Page 2 The BayWa Group Segment Breakdown
Revenues 2018: 16,625 EUR m BayWa Group
Revenues 2018: 11,016 EUR m 3,968 EUR m 1,617 EUR m 10.7 EUR m Building Innovation Agriculture Energy 24% 10% 66% Materials & Digitalisation
BAST Conventional Building Digital Farming (BayWa Agri Supply & Energy Materials & E-Business Trade)
Agri Trade & Renewable Services Energies
Agriculture Equipment
Global Produce
Investor Relations May 2019 Page 3 The BayWa Group Management Board
Our Executives
Prof. Klaus Josef Lutz Andreas Helber Marcus Pöllinger Matthias Taft Reinhard Wolf Chief Executive Officer Chief Financial Officer Management Board Member Management Board Member Management Board Member
▪ Appointed CEO of BayWa in 2008 ▪ Joined BayWa in 2000 as head of ▪ Joined BayWa in 2008 as CEO ▪ Joined BayWa in 2015 as a ▪ Joined BayWa in 2013 as a ▪ Degree in law from the Ludwig- finance; CFO since 2010 assistant; board member since member of the executive board member of the executive board Maximilians-Universität in Munich ▪ Degree in business from the 2018 ▪ Degree in Mechanical ▪ Degree in agricultural economics ▪ Previously served as managing Universität Siegen ▪ Degree in business from the Engineering from the Technische from the Universität Wien director at Süddeutscher Verlag ▪ Previously served as a tax advisor Munich Business School Universität München ▪ Additionally serves as CEO at GmbH and accountant at KPMG Deutsche- ▪ Previously served as General ▪ Additionally serves as CEO at Raiffeisen Ware Austria AG and Treuhand-Gesellschaft AG Representative for Building BayWa r.e. renewable energy board member at Raiffeisen- Materials and Agri Trade & GmbH Holding NÖ-Wien Service at BayWa AG
Investor Relations May 2019 Page 4 The BayWa Group Milestones
Our History
1923 1920s 1950s 1960s 1970s Founding in Munich Mechanisation First Increasing meat First DIY & of the farming agricultural consumption: Garden Centres; industry equipment feed factories investment in sales locations expanded petrol stations
2011 2009 2002 1999 1980s Carve-out of DIY & Garden Founding Acquisition of Strategic alliance New business segment: Centres in J.V. WLZ Raiffeisen AG Building Materials
2012 2013 2014/15 2016 2017 Acquisition Acquisitions Expansion Agri-Trading New business Growing segment focus on BayWa Agrar Innovation & project T&G Global International Digitalisation business
Investor Relations May 2019 Page 5 The BayWa Group Brand Values
Our Values
Trust: the basis for a strong partnership
Solidity: the firm foundation for sustainable growth
Innovation: the development of new products and solutions for a partnership that is fit for the future
Investor Relations May 2019 Page 6 The BayWa Group Business Model and Corporate Strategy
Our Direction
Business Model Corporate Strategy
Customers Markets Business continuity: New business growth: ▪ Farmers ▪ Agriculture Improve competitiveness and protect Drive customer centric and innovative ▪ End customers ▪ Energy/ renewable energies 1 leadership in core business 2 business models ▪ Industry ▪ Building Materials ▪ Commerce ▪ Trade ▪ Financial investors Digital transformation: 3 Increase digitization in business models and organisation Operations and brand excellence: 4 Excel at all customer touchpoints beyond sales Operating activities Unique selling proposition ▪ Trade ▪ Customer proximity through full- Organisational excellence: ▪ Logistics coverage network for sales and Foster performance through team and collaboration ▪ Services logistics 5 ▪ Finance ▪ Project development Corporate value creation: 6 Maintain a visionary group portfolio management
Investor Relations May 2019 Page 7 The BayWa Group Group Strategy
Our Direction
Project business is a key driver throughout the BayWa Group in the future
BayWa will concentrate increasingly on more valuable Energy From a supplier customer and project solutions in the future of energy and heating...
... to a project developer for renewable energy
Building Materials From a retailer of building materials…
... to cooperation partner for concepts of innovative buildings
Global Produce From a supplier of dessert pome fruits for food wholesale and retail …
… to an international project developer of greenhouses
Farming Business From a wholesaler for the agricultural sector…
… to a provider of digital farming backed projects and customer solutions
Investor Relations May 2019 Page 8 The BayWa Group Strategic positioned in Europe
Our Presence
Germany Germany Germany Germany Germany PC Agrar: Takeover of systems BayWa r.e.: Acquisition BayWa Obst GmbH & Co KG: Acquisition of BayWa Spin-off of CLAAS companies and software company of rights for 31 Wind Carve-out of German BayWa Agrarhandel (formerly proj. (375MW) from juwi Fruit organisation Bohnhorst)
The Netherlands Germany Agrimec: JV of Agri machinery business JV Landhandel Knaup
The Netherlands UK Tropical Fruit Company: Cefetra Ltd.: Takeover of specialty trader Takeover of specialties trader Premium Crops Ltd.
The Netherlands Poland Cefetra B.V.: Acquisition of Cefetra with BayWa Agro Polska: Development of activities in NL, UK, PL, HU business in operating resources
UK The Netherlands Cefetra Ltd: Takeover of Wessex Grain Royal Ingredients: Takeover of specialty trader
France, UK, Spain, etc. Spain/Portugal Italy Romania, Croatia, Hungary, Romania, Serbia, Bulgaria BayWa r.e: expansion of international Cefetra Iberica SL: Cefetra SpA: Serbia, etc. Danube region: Evaluation of core project business Wind & Solar in Establishment of Spanish Establishment of Further development of sourcing-regions in Europe: Taking 10 European countries; Sale of trading and service Italian trading and CEE activities by RWA advantage of options to expand market project Don Rodrigo with 175 MW company service company position and tap into new markets
Investor Relations May 2019 Page 9 The BayWa Group Strategic positioned globally
Our Presence
USA China BayWa r.e. Development of project T&G: Opening of Sales-Rep-Office in business Wind & Solar in USA; Sale of Shanghai project Beethoven with 80MW
Canada Thailand Sales cooperation for agricultural BayWa r.e., BayWa Obst, T&G: machinery with Claas Opening of a Rep-Office in Bangkok
BMTI-BayWa Marketing and Trading The Netherlands International Acquisition of 70% share of solar Establishment of int. trading network with project developer Groen Leven offices in NL, RUS and UKR
Peru/Chile Japan T&G: Extension of activities in BayWa r.e.: Opening of an South America office in Japan
UAE New Zealand JV with Al Dahra to produce Acquisition of fruit dealer premium vegetables Turners & Growers
Zambia / South Africa Australia Australia New Zealand JV with Barloworld for BayWa r.e.: Opening of an office in Perth Asparagus: T&G-JV with Vizzari Acquisition of Apollo Apples agricultural engineering Ltd. by T&G
Investor Relations May 2019 Page 10 The BayWa Group Key Financial Figures
Our Data
Revenues 2018 in EUR bn Operating EBIT 2018* in EUR m
227,2 20 16,6 250 200 15 11,0 150 96,0 100,1 10 100 50 31,1 5 3,9 1,6 0 0 Building Energy Agriculture Group Building Materials Energy Agriculture Group Materials
10% 24% 66% 14% 42% 44%
* Excluding Innovation & Digitalisation Segment and Other Activities
Investor Relations May 2019 Page 11 The BayWa Group Key Financial Figures
Multi-year Comparison
Revenues EBIT Dividend
▪ Revenue increase especially through ▪ Earnings growth y/y in Agriculture, Energy and ▪ Sustainable dividend payment international expansion of renewable energy and Building Materials agriculture businesses ▪ Divided yield of around 4% in 2018 ▪ Positive one-off effects in 2017 (e.g. BayWa Headquarters) compensated by higher operating result in EUR bn in EUR m in EUR
171,3 172,4 16,1 16,6 0,90 0,90 15,2 15,4 14,9 158,1 152,1 0,85 0,85 144,7 0,80
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Investor Relations May 2019 Seite 12 The BayWa Group Share
Dividend 2018: 0.90 Euro
Share Price Development 2017/2018/2019 Shareholder Structure
35 €
30 € Bayerische Raiffeisen- Freefloat Beteiligungs AG 40.12% 34.87% 25 €
20 € BayWa (Sec. Code no. 519 406) 15 € Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19
Stock exchanges Frankfurt, Munich, Xetra Segment Official Market/Prime Standard Sec. Code no. 519406 and 519400 ISIN DE0005194062 and DE0005194005 Raiffeisen Agrar Invest GmbH 25.01% Share capital EUR 89,953,658.88 Number of shares 35,138,148
Investor Relations May 2019 Page 13 Industry Trends & Business Segments
Investor Relations May 2019 Page 14 Agriculture Segment
Grains Oilseeds Seeds Feedstuffs Crop Protection Fertilisers Fruit Agricultural Equipment
Investor Relations May 2019 Seite 15 Global Challenge in the Agriculture Segment: High-Quality Food for Everyone
Our World
The Facts: ▪ By 2050, the world’s population will grow by another 2 billion, reaching 9 billion people. ▪ Increasing prosperity in newly industrializing countries is leading to changes in eating habits and increasing demand for food. ▪ The global arable land per person will decrease from 0.3 to 0.2 hectares between 2000-2050.
BayWa‘s Role: Supplying the agricultural industry: ▪ With new and modern cultivation methods that increase agricultural productivity ▪ By providing all operating materials for farming and cultivation ▪ By securing the supply of raw materials through the formation of an interconnected, global stream of commerce
Investor Relations May 2019 Page 16 Agriculture Segment One-Stop Expertise
Our Business in 2018 € 11.0 bn Revenues, 10,428 Employees, 66% of Group Revenues
▪ Trading and sales of agricultural products, input resources, agricultural equipment and fruit
▪ Significant position as a full-line supplier: ▪ Largest agricultural trader in Germany ▪ Worldwide among the top 10
▪ Nearly full coverage of the agricultural value chain
▪ Organized into four business units:
BAST Agri Trade & Agricultural Global (BayWa Agri Supply & Trade) Service Equipment Produce
▪ Grain, soya, co- ▪ Grain collection and ▪ Agricultural machinery ▪ Pome fruit products & specialties trade & equipment ▪ Soft & stone fruit trading ▪ Seed ▪ Agricultural buildings ▪ Organic pome fruit ▪ Logistics ▪ Fertiliser ▪ Workshop services ▪ Tropical fruit ▪ Supply Chain ▪ Crop protection ▪ Spare parts ▪ Vegetable fruit Management ▪ Feedstuff ▪ Cultivation services
Investor Relations May 2019 Page 17 Agriculture Segment BAST (BayWa Agri Supply & Trade)
Our Sucess
▪ Procurement and sale of agricultural products worldwide ▪ Product portfolio comprises grain, soya, supplementary products and specialties ▪ Expansion of specialties trading: malting barley, hops, organic grain, minerals, derivatives… ▪ Trading of over 25 million tons of grain and oilseed per year ▪ Global supply chain management and logistics services ▪ Import and export of agricultural products through own domestic and deep-water ports ▪ Largest soy importer for the European feedstuff industry
Investor Relations May 2019 Page 18 Agriculture Segment Agri Trade & Service
Our Success
▪ Collection, screening, processing, drying, storage and trade of agricultural products ▪ Dense network with ca 200 locations in Germany ▪ Cooperation with around 470 warehouses in Austria ▪ Provision of own storage capacities for products and input resources in excess of 2.7 million tons ▪ Important sales partner for the fertiliser industry and seed sector ▪ Germany’s number one in the trading of crop protection products ▪ Supplier of 4 premium house brands: Planterra (seed), InnoFert (fertliser), InnoProtect (crop protection) and Bonimal (feedstuff)
Investor Relations May 2019 Page 19 Agriculture Segment Global Produce
Our Success
▪ One of the leading fruit traders worldwide ▪ Year-round supplier of pome fruit from all over the world ▪ Diversified fruit portfolio with focus on soft & stone fruit, tropical fruit and vegetable fruit ▪ Entry into vegetable fruit cultivation in United Arab Emirates ▪ Global trademark rights for the apple varieties Kanzi®, Greenstar®, Jazz® and Envy® ▪ Guaranteed just-in-time delivery thanks to state-of-the-art packing and sorting technology ▪ Own cold stores and mature chambers ▪ Largest German supplier of pome fruit from organic contract farming ▪ Access to producers in northern and southern hemisphere
All German locations have been operating carbon neutral since 2018
Investor Relations May 2019 Page 20 Agriculture Segment Agricultural Equipment
Our sucess
▪ Leading agricultural equipment trader: ▪ One of the largest in Europe ▪ No. 1 in Germany ▪ Exclusive sales rights for the AGCO Group brands (Fendt, Massey Ferguson, Valtra and Challenger) in Southern Germany, parts of Eastern Germany and the southern part of The Netherlands as well as CLAAS in Southern Germany and John Deere in Austria ▪ Expansion of activities to Canada, South Africa and Zambia ▪ Dense service network with 671 mobile service vehicles and 284 workshops ▪ Largest national spare parts trader with access to over 10 million articles ▪ Spare parts distribution via own internet platform (www.tecparts.com)
Investor Relations May 2019 Page 21 Energy Segment
BayWa r.e. Heating Oil Lubricants Fuels Solid Biofuels
Investor Relations May 2019 Seite 22 Global Challenge in the Energy Segment: Clean Energy to Combat Climate Change
Our World
The Facts: ▪ A growing world population combined with a rising standard of living in newly industrializing countries is leading to increasing demand for energy ▪ Climate protection needs decarbonisation with at the same time increasing demand ▪ Within the past 40 years, global CO2 emissions have doubled ▪ Goal: at least 80% of power generation in Germany originate from renewable energy sources until 2050
BayWa‘s Role: ▪ Provision of an ecological and sustainable energy supply ▪ Being a strong partner for renewable energy projects through the founding of BayWa r.e. ▪ Offering renewable energy products, even in the conventional energy sector
Investor Relations May 2019 Page 23 Energy Segment Sustainable Solutions for a Brighter Future
Our Business in 2018 € 3.9 bn Revenues, 2,407 Employees, 24% of Group Revenues
▪ Organised into the business units of Renewable Energies and Conventional Energy
▪ Renewable energies activities are bundled in the holding company BayWa r.e. renewable energy
▪ Position as a project developer and trader in the areas of solar, wind and biomass energy
▪ Largest independent solar trader in Germany
▪ Conventional Energy encompasses energy-related services as well as the sale of wood pellets, fossil-based heating materials, fuels, lubricants and AdBlue
Renewable Energies Conventional Energy Trade, Project Development & Financing, Consulting, Service Logistics, Sales, Trade, Service, Petrol Stations
▪ Solar energy ▪ Heating contracting ▪ Wind energy ▪ Wood pellets ▪ Biomass energy ▪ Heating oil ▪ Fuels ▪ AdBlue ▪ Lubricants
Investor Relations May 2019 Page 24 Energy Segment BayWa r.e. renewable energy
Our Success
▪ Full supplier for the renewable energies business: projects, services and solutions
▪ Presence in the most important markets in Europe as well as Australia, North America and Southeast Asia
▪ About 2.5 GW capacity added to the grid (wind farms, solar parks and biogas facilities)
▪ Technical and commercial operation of solar and wind farms with an output of more than 5.7 GW
▪ Sale of 3.5 GW installed capacity on electricity markets
▪ Trading of PV-components: more than 2,224 MWp of solar modules sold
▪ Premium provider of green electricity and green gas as well as contracting solutions; more than 6.9 TWh Biomethane traded
100% climate neutrality by 2018 In 2018, unavoidable CO2 emissions from business activities (eg. business travel) were compensated
Don Rodrigo in Spain: with an output of roughly 175 MW, BayWa r.e.'s largest solar park to date without subsidies.
Investor Relations May 2019 Page 25 Segment Energie Conventional Energy
Our Success
▪ Strong position in the heating oil trade: ▪ Largest independent trader in southern Germany ▪ One of the largest in Austria ▪ Market leader in Germany with regard to lubricants for biogas CHP-engines and multifunctional-oils ▪ Market leader in wood pellets in southern Germany ▪ Extensive e-shop product range ▪ 24/7 fuel delivery service for building sites and key accounts ▪ Energy contracting with in-depth expertise in renewable energies ▪ Own network of petrol stations and fuel card with over 2,500 participating stations in Germany; supplier of roughly 470 petrol stations in Austria ▪ Electromobility: ▪ 35,000 electric stations in Europe accept the BayWa fuel card ▪ Fleet analysis for fleet managers as a basis for entry into electromobility
Investor Relations May 2019 Page 26 Building Materials Segment
Investor Relations May 2019 Seite 27 Global Challenge in the Building Materials Segment: Building Efficiently, Ecologically and Healthy
Our World
The Facts:
▪ The average person spends 90% of his or her time in enclosed spaces
▪ The air pollution indoors can be up to 50 times higher than outside
▪ Construction is changing – worldwide there is a stronger tendency towards energy-efficient and sustainable building
BayWa‘s Role:
▪ Increasing quality of life
▪ Offering premium building materials and services for new construction, renovation and modernisation to achieve energy-efficient and sustainable solutions
▪ Supporting innovative research projects such as the Effizienzhaus Plus (energy-efficient house) in Burghausen, Germany, and the Effizienzhaus village in Friedberg-Hügelshart
Investor Relations May 2019 Page 28 Building Materials Segment BayWa Building Materials: Always a Great Sense of Building
Our Business in 2018 € 1.6 bn Revenues, 4,211 Employees, 10% of Group Revenues ▪ Selling and supplying building materials of all kinds to commerical and private customers ▪ Finding qualified craft businesses and taking over modern construction site logistics ▪ Supplying system solutions such as full facades ▪ Additional services such as funding and energy consultation ▪ Construction activities through own building services engineering ▪ Supervision and support of franchise partners in Germany and abroad ▪ Expansion of the project business through JVs: BayWa Bau Projekt GmbH
Building Materials
▪ Garden, terrace, driveway ▪ Renders, paints ▪ Windows, doors, gates ▪ Cellar, brickwork, roof ▪ Parquet, laminate, vinyl ▪ Building equipment, tools ▪ Wooden flooring, tiles ▪ Heating, air condition, sanitary ▪ Dry construction, insulation ▪ Prefabricated building parts
Investor Relations May 2019 Page 29 Building Materials Segment Building Materials
Our Success
▪ Second-largest building materials trader in Germany ▪ 200 locations in South & East Germany and Austria ▪ Highly qualified specialists: 100+ trained energy consultants ▪ Efficiency: over 2,200 truck deliveries per day, on average ▪ Implementation of plumbing services ▪ More than 290,000 satisfied customers ▪ Expansion of online offering: B2B online portal, interior designer, home configurator ‚Mr+Mrs Homes‘ ▪ Expertise going back decades in the building materials sector ▪ Always close to the customer: locally and online ▪ Customised expert advice and requirements-based service
Investor Relations May 2019 Page 30 Innovation & Digitalisation Segment
Investor Relations May 2019 Seite 31 Global challenge in the Innovation & Digitalisation Segment - Continuous world population growth
Our World
World population growth (bn): Global farming conditions:
9.5 300% 3.2 t/ha 6.9 3.7 250% Yield per hectare 200% 1970 2010 2050 150% Fed people per farmer: 1.1 t/ha 100% 2,300 m² <1,000 m² 1900 1950 2012 50% Cropland per capita 4 10 129 0% 1950 1970 1990 2010 Sources: BMEL, Food and Agriculture, Organization of the United Nations (FAO)
Investor Relations May 2019 Page 32 Innovation & Digitalisation Segment Innovative technology raises productivity and sustainability
Our Business in 2018: € 10.7 m Revenues, 183 Employees
e-Business Digital Farming
▪ Digital service offerings (advisory services, apps, telemetry) ▪ BayWa as Smart Farming enabler for system solutions encompassing the entire agricultural value chain: e.g. site-specific fertilizer application, sowing, ▪ Digital fullfillment and e-commerce irrigation ▪ Consistent omnichannel processes ▪ Sensor technology, drone flights and Smart Farming consultancy services ▪ Bundeling of e-business activities in the BayWa Portal ▪ Business unit Farm Management – information systems and digital advisory services ▪ Analogous services (e.g. soil analysis)
Investor Relations May 2019 Page 33 Innovation & Digitalisation Segment Digital Farming
Our Success
▪ Active shaping of digitalisation in agriculture, with vendor-neutral solutions for Smart Farming and Precision Farming ▪ With the “NEXT Farming OFFICE” software, BayWa is a leading supplier in Farm Management Information Systems for large-scale farms as well as for small and mid-sized farms with “NEXT Farming LIVE”, the new cloud-based product generation ▪ Development of integrated and site-specific solutions, e.g. for optimised organic and mineral fertiliser application, sowing, grassland care and irrigation using satellite or sensor data ▪ VariableRain, a satellite-based solution that precisely meets the water needs of crops ▪ Prize-winning innovations: “Connected Nutrient Management”, an integrated solution for organic and mineral fertilisation, as well as “ICA-Wireless” irrigation management ▪ Development of telemetry solutions ▪ Second Level Support and machine connectivity ▪ International Smart Farming advisory services
Investor Relations May 2019 Page 34 Agro Innovation Lab Globale Startup Activities in Ag-Tech
Program Participants 2018 Our Success
▪ Innovation hub of BayWa & RWA ▪ First corporate Ag-Tech startup Accelerator in Europe ▪ Founded in 2016 ▪ Looking for High-Potential Startups ▪ Providing selected services and resources for startups ▪ Developing and implementing go-to-market and growth strategies for innovative technologies ▪ Building strategic partnerships ▪ 650 applications since the begining of the program
Investor Relations May 2019 Page 35 Sustainability
Acting responsibly
Corporate Sustainability May 2019 Page 36 Sustainability Strategy
Our Sustainability Approach
Implementation of economic, ecological and social activities through 4 strategic fields of action:
Environment & Market Climate
Employees Quality of life
Corporate Sustainability May 2019 Page 37 Acting Responsibly Sustainability at BayWa
Our Strategic Fields of Action and Activities
Environment & Climate Market Employees Quality of life
BayWa pays special attention to the intelligent BayWa supports its customers with innovative BayWa offers a safe and appreciative work BayWa creates added value for society by: use of natural resources by: products and services by: environment by:
▪ having fixed goals to reduce their GHG ▪ providing healthy living goods and energy ▪ training as needed and thus providing young ▪ Promoting educational projects in the field of emissions efficient products people with a career entry healthy nutrition with the BayWa Foundation
▪ becoming until 2030 climate neutral ▪ developing Digital solutions for agriculture ▪ considering occupational safety and health ▪ Sponsoring sport events, environmental protection the highest priority protection and education ▪ switching their vehicle fleet to low emission ▪ promoting the expansion of renewable models energies ▪ enabling the compatibility of family and work ▪ Awarding grants for students
▪ recycling of waste and packaging materials
Corporate Sustainability May 2019 Page 38 BayWa Climate Strategy Climate neutrality by 2030
Corporate Sustainability May 2019 Page 39 BayWa Foundation
Strong in the future
BayWa Foundation May 2019 Page 40 BayWa Foundation Educate. Support. Make a difference.
www.baywastiftung.de
The BayWa Foundation 160 In 11 countries has been involved in School gardens promoting educational projects in the fields of were planted in German the BayWa Foundation is involved in educational projects, healthy nutrition and primary schools as part of the nutrition education programme including the biogas project in renewable energy „Planting vegetables. Tanzania and the training of Harvesting health.“ young mothers in Zambia
Every 2. Around 800 primary school scholarships in Bavaria is already working with the activity book "Der has already awarded the Ernährungskompass“ (the BayWa Foundation to students nutrition compass)
Support us with your donation: BayWa Foundation Donations account: IBAN: DE16 701 6000 0000 055 44 May 2019 Page 41 DZ Bank AG BIC: GENODEF701 Corporate Goals
The ground for the next 100 years is prepared
Investor Relations May 2019 Page 42 Outlook Corporate Goals
Our Future
Enhance Independence and Competitiveness
▪ Use of the best portfolio of international business and brands
▪ Remain true to its cooperative roots while continuing to evolve
Ensuring Sustainable Entrepreneurship
▪ Profitable and sustainable business in the long term in all current and new fields
Responsible Corporate Conduct
▪ Keep a long-term focus shaped by the company‘s responsibility towards customers, employees, other stakeholders and the society as a whole
▪ The connection between BayWa and its customers is the basis of shared success
Investor Relations May 2019 Page 43 Investor Relations Contact
Josko Radeljic Raphaela Da Costa von Head of Investor Relations Gehlen Junior Investor Relations Manager [email protected] [email protected] Phone: +49 (089) 92 22 3887 Phone: +49 (089) 92 22 2873 Mobile: +49 162 2828671 Mobile: +49 151 44024858
BayWa AG, Arabellastraße 4, 81925 Munich, Germany [email protected] Homepage: www.baywa.com
Investor Relations May 2019 Page 44 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. Appendix: Strategically Relevant Affiliated Companies
Our growth
Investor Relations May 2019 Page 46 Affiliates
BayWa r.e. renewable energy GmbH
Company: BayWa r.e. renewable energy GmbH North America Headquarters: Munich, Germany Revenues: ca. EUR 1.5 bn Employees: approx. 1,450 BayWa stake: 100% Founded: 2009 Business activities BayWa r.e. Business fields: wind, solar, biomass
Europe Southeast Asia Locations: Australia, Austria, Croatia, Denmark, France, Germany, Greece, Hungary, Indonesia, & Australia Italy, Japan, Luxembourg, Malaysia, Mexico, Poland, Romania, Singapore, Spain, Sweden, Switzerland, Thailand, The Netherlands, UK, USA
Company purpose: project planning, trade and services in the renewable energies sector
Investor Relations May 2019 Page 47 Affiliates
BayWa Agri Supply & Trade B.V. (BAST) – 1/2
BayWa Agri Supply & Trade B.V.
Traditional Business Specialty Business
Evergrain Cefetra Cefetra Cefetra Cefetra Cefetra Royal Cefetra Cefetra BMTI Germany Tracomex Premium Feed Ibérica Polska Hungary Italy Ingredients B.V. Ltd. B.V. GmbH & B.V. Group Crops Ltd.* B.V. Service S.L. Sp z o.o Kft. Spa Co. KG
Revenues: ca. EUR 5.3 bn Employees: approx. 500 BayWa stake: 100% Main products: Grains, soya, co-products and specialties Company purpose: holding engaged in the international business of trading & supply chain management in agricultural commodities and specialties * Part of Cefetra Ltd.
Investor Relations May 2019 Page 48 Affiliates
BayWa Agri Supply & Trade B.V. (BAST) – 2/2
Overview of product portfolio of BAST trading activities (in %) Major trade flows of BAST in 2018:
Traditional Business Specialty Business
Grains Soya Co-products Specialties
Milling Grains Soybeans Oilseeds Minerals
Feed Grains Soybean Meal Oilseed Meal Derivatives
Malting Grains Soybean Hulls Co-Products Other Specialt.
Volume sold in country/region in 48% 22% 23% 7% Volume flow, arrow represents million tons trade flow, in million tons
Investor Relations May 2019 Page 49 Affiliates
Evergrain Germany GmbH & Co. KG
Company: Evergrain Germany GmbH & Co. KG* Headquarters: Hamburg, Deutschland Revenues: ca. EUR 149 m Employees: approx. 10 BayWa stake: 100% Trading activities: in over 35 countries worldwide Collection volume: ca. 270,000 tons per year Trading volume: ca. 750,000 tons per year Consolidated since: January 2016 Company purpose: procurement of high-quality brewing grains (e.g. malting barley) in most major export markets worldwide and marketing to regional and international customers of the malting brewing industries
Malting barley trading Evergrain * Part of BayWa Agri Supply & Trade B.V.
Investor Relations May 2019 Page 50 Affiliates
BayWa AG Tracomex B.V.
BayWa Agri Supply & Trade B.V. Company: Tracomex Group* Headquarters: Oosterhout, The Netherlands 100% Revenues: ca. EUR 138 m Employees: approx. 20
Tracomex B.V. BayWa stake: 100%
The Netherlands Trading volume: approx. 1 million tons per year Countries: Belgium, the Netherlands, Luxemburg Consolidated since: January 2017 Subsidiaries: Thenergy B.V. Riveka BVBA Biocore B.V. ▪ Tracomex B.V., Oosterhout, The Netherlands The Netherlands Belgium The Netherlands ▪ Thenergy B.V., Oosterhout, The Netherlands ▪ Riveka BVBA, Boom, Belgium ▪ BioCore B.V., Weesp, The Netherlands
Company purpose: international trading of grain specialities, agricultural niche products & organic produce (e.g. buckwheat, legumes, oat, rice, rye, millet…) destined for human * Part of BayWa Agri Supply & Trade B.V. consumption and the feed industry
Investor Relations May 2019 Page 51 Affiliates
Premium Crops Ltd
Company: Premium Crops Ltd.* Headquarters: Waterlooville, England Revenues: ca. EUR 26 m Employees: approx. 15 BayWa stake: 100% Trading volume: approx. 70,000 tons per year Business area: England Consolidated since: March 2018
Main products: linseed, red wheat, canary seed, millet, oats, rapeseed with high erucic acid content... Company purpose: leading supplier, distributor and supplier of cereal specialties with a focus on sustainable, traceable and fully risk-controlled supply chains for niche oil crops and cereals
* Part of Cefetra Ltd.
Investor Relations May 2019 Page 52 Affiliates
Royal Ingredients Group B.V.
Company: Royal Ingredients Group B.V.* Headquarters: Alkmaar, The Netherlands Revenues: ca. EUR 115 m Employees: approx. 40 BayWa stake: 60% Trading volume: approx. 120,000 tons per year Offices: The Netherlands, USA, Republic of China, Brazil, Columbia, Nigeria und India Consolidated since: April 2019
Product portfolio: core product groups are proteins (corn gluten, fish meal, potato protein, etc.), starches & flour (corn starch, potato starch, etc.), sweeteners & polyols (glucose, maltose, etc.), specialties (chia, quinoa, etc.)
Company purpose: supplier / distributor of conventional and organic ingredients for food, feed, and industrial applications
* Part of BayWa Agri Supply & Trade B.V.
Investor Relations May 2019 Page 53 Affiliates
BayWa Agrarhandel GmbH
Company: BayWa Agrarhandel GmbH Headquarters: Nienburg, Germany Revenues: ca. EUR 255 m Employees: approx. 70 BayWa stake: 100% Port locations: seaports in Mukran and Vierow; inland ports on the Weser and Midland Canal Business regions: Northeastern Germany and Poland Storage capacity: approx. 83,000 tons (incl. Ketzing) Consolidated since: Q2 2013 Company purpose: agricultural trade with international activities
Locations BayWa Agrarhandel GmbH
Investor Relations May 2019 Page 54 Affiliates
T&G Global Ltd.
Company: T&G Global Ltd. Headquarters: Auckland, New Zealand Revenues: ca. EUR 750 m Employees: approx. 2,600 (including seasonal workers) BayWa stake: 73.99% Main products: apples, kiwis, tomatoes, citrus fruit Consolidated since: April 2012
Locations: Australia, Belgium, Canada, Chile, China, Fiji, Japan, New Zealand, Peru, Thailand, UK, USA
Company purpose: collection, processing and sale of fruits; international fruit and vegetable trading
Export markets T&G Procurement markets
Investor Relations May 2019 Page 55 Affiliates
TFC Holland B.V.
Company: TFC Holland B.V. Headquarters: Maasdijk, The Netherlands Revenues: ca. EUR 77 m Employees: approx. 50 BayWa share: 73.4% Main products: avocado, mango, papaya, ginger, citrus fruits, lime Consolidated since: March 2016
Stategic success factors: global sourcing network (40 countries); focus on ready-to-eat fruits prepared in own mature chambers
Company purpose: international sourcing, processing and sale of fruits
Exportmarkets TFC Procurement markets
Investor Relations May 2019 Page 56 Affiliates
BayWa Obst GmbH & Co. KG
Company: BayWa Obst GmbH & Co. KG Headquarters: Munich, Germany Revenues: ca. EUR 34 m Employees: approx. 110 BayWa stake: 100% Locations: 5 locations in the regions of Lake Constance and Neckar Main products: dessert pome fruit (apples, pears), soft and stone fruit Consolidated since: January 2015 Company purpose: collection, processing, packaging and sale of fruits
Investor Relations May 2019 Page 57 Affiliates
RWA Raiffeisen Ware Austria AG
Company: RWA Raiffeisen Ware Austria AG Headquarters: Vienna, Austria Revenues: ca. EUR 2.8 bn Employees: approx. 2,145 BayWa stake: 50% + 1 share Warehouse locations: 1,040 Business areas: agriculture, agricultural equipment, building materials, DIY & garden centres, energy Consolidated since: 1999 Company purpose: wholesale and service activities for the Lagerhaus cooperatives in Austria
Investor Relations May 2019 Page 58 Affiliates
„Unser Lagerhaus“ WHG mbH
Company: „Unser Lagerhaus“ WHG mbH Headquarters: Klagenfurt, Austria Revenues: ca. EUR 524 m Employees: approx. 1,055 BayWa stake: 51.1% Locations: 104 Business areas: agriculture, agricultural equipment, energy, DIY & garden centers, building materials Consolidated since: 1995 Company purpose: wholesale and retail activities for the Lagerhaus cooperatives in Austria
Investor Relations May 2019 Page 59 Affiliates
BayWa Vorarlberg HandelsGmbH
Company: BayWa Vorarlberg HandelsGmbH Headquarters: Lauterach, Austria Revenues: ca. EUR 77 m Employees: approx. 210 BayWa stake: 51% Founded: 1995
Business areas: agricultural products, DIY & everyday products, building materials, petroleum products, farming and municipal machinery plus repairs and services
Company purpose: wholesale and retail in Austria
Investor Relations May 2019 Page 60 Affiliates
RI Solution GmbH
Company: RI Solution GmbH Headquarters: Munich, Germany Revenues: ca. EUR 10 m Employees: approx. 230 BayWa stake: 80% (RWA stake: 20%) Founded: 2002
Business areas: IT consulting, IT project planning, IT development and implementation, rollout, operation and maintenance of software solutions, strategic hardware and software purchasing
Company purpose: project planning, implementation, installation, operation and support of highly diverse application solutions
Investor Relations May 2019 Page 61 Affiliates
FarmFacts GmbH
Company: FarmFacts GmbH Headquarters: Pfarrkirchen, Germany Revenues: ca. EUR 9 m Employees: approx. 110 BayWa stake: 100%, konsolidated since March 2015 Countries: Germany, Austria, Switzerland, Poland, Hungary, Romania, Czech Republic, Baltic States, The Netherlands, Southern Africa
Main products/services: ▪ Farm Management - information system: software NEXT Farming OFFICE ▪ Digital advisory services (e.g. mapping services) ▪ Soil analysis, drone flights
FarmFacts Academy: Smart Farming enabling external and internal (advisory services for farmers, technical support for product development and sales)
USP: Solution provider, independent from manufacturers (interconnection of software, support and services), guarantee for compatibility of machines, market leader in Germany for farms > 300 ha
Investor Relations May 2019 Page 62 Affiliates
Agrimec Group B.V.
Company: Agrimec Group B.V. Headquarters: Apeldoorn, The Netherlands Revenues: ca. EUR 86 m Employees: approx. 200 BayWa stake: 100% Consolidated since: July 2016
Locations: 17 locations in the south and one location in the north of The Netherlands
Important brands: Fendt, Massey Ferguson, Challenger, Lemken, Krone, Merlo, Joskin, Agrifac
Company purpose: import, sales and service of agricultural equipment and machinery (new and used machinery)
Locations Agrimec Group
Investor Relations May 2019 Page 63 Affiliates
GroenLeven B.V.
Company: GroenLeven B.V.* Headquarters: Heerenveen, The Netherlands Revenues: ca. 44 m Employees: approx. 45 BayWa stake: 70% Founded: 2011 Trading activities: The Netherlands Consolidated since: 1 half-year 2018
Record of success: 127 MW of solar projects have been developed and built in the Netherlands; Market leader with around 25% market share
Project pipeline: around 2 GW of solar projects (floating, open space, rooftop)
Company purpose: design and development of solar energy projects
* Part of BayWa r.e. Group
Investor Relations May 2019 Page 64 Appendix: Group Financials
Investor Relations May 2019 Page 65 Group Financials Income Statement
Our Business in 2018
in EUR m 2014 2015 2016 2017 2018 ∆17/18 (%)
Revenues 15,201.8 14,928.1 15,409.9 16,055.1 16,625.7 3.6% EBITDA 279.8 288.3 272.6 318.4 315.3 -1.0% % of Revenues 1.8% 1.9% 1.8% 2.0% 1.9% EBIT 152.1 158.1 144.7 171.3 172.4 0.6% % of Revenues 1.0% 1.1% 0.9% 1.1% 1.0% EBT 80.4 88.1 69.6 102.4 92.6 -9.6% % of Revenues 0.5% 0.6% 0.5% 0.6% 0.6% Consolidated net income 80.7 61.6 52.7 67.2 54.9 -18.3% Tax rate -0.4% 30.1% 24.3% 34.4% 40.7% Share of minority interest 19.3 13.4 21.6 27.9 22.6 -19.0% as % of net income 23.9% 21.8% 41.0% 41.5% 41.2% Share of owners of parent company 61.4 48.2 31.1 39.3 32.3 -17.8% as % of net income 76.1% 78.2% 59.0% 58.5% 58.8% Earnings per share (EPS) in EUR 1.78 1.39 0.90 1.13 0.92 -18.6%
Investor Relations May 2019 Page 66 Group Financials Balance Sheet
Our Business in 2018
in EUR m 2014 2015 2016 2017 2018 ∆17/18 (%)
Total assets 5,652.0 6,036.7 6,474.9 6,488.0 7,511.5 15.8%
Equity 1,050.4 1,075.9 1,098.3 1,435.5 1,389.1 -3.2%
Equity ratio 18.6% 17.8% 17.0% 22.1% 18.5%
Equity ratio adjusted* 22.4% 21.4% 20.8% 25.7% 21.6% in EUR m 2014 2015 2016 2017 2018 ∆17/18 (%)
Non-current assets 2,261.7 2,287.2 2,355.7 2,396.9 2,476.9 3.3%
Current assets 3,371.8 3,739.7 4,094.2 4,077.4 5,030.4 23.4%
Provisions 921.2 913.8 956.2 951.6 929.9 -2.3%
Non-current financial liabilities 1,107.9 1,223.2 1,269.3 1,042.3 1,047.6 0.5%
Current financial liabilities 1,175.1 1,321.0 1,520.8 1,446.9 2,243.4 55.0%
Investor Relations May 2019 Page 67 Group Financials Cash Flow Statement
Our Business in 2018
in Mio. Euro 2014 2015 2016 2017 2018 ∆17/18 (%)
Consolidated net income 80.7 61.6 52.7 67.2 54.9 -18.3%
Cash flow from operating activities -90.6 19.0 208.6 -170.2 -452.5 > -100%
Cash flow from investing activities -227.6 -143.5 -123.6 -60.5 -243.0 > -100%
Cash flow from financing activities 334.4 98.7 -63.0 235.9 710.8 > +100%
Cash & cash equivalents at the start of the period 92.1 108.4 84.5 104.4 105.5 1.1%
Cash & cash equivalents at the end of the period 108.4 84.5 104.4 105.5 120.6 14.1%
Investor Relations May 2019 Page 68