Think boldly – act responsible Editorial

Key data at a glance Dear Readers,

BayWa Group Energy, and Building Materials: those are BayWa’s core segments. They allow us to serve the basic human needs for food, energy, mobility, warmth and building. Yet they also call on us to take responsible in € million 2015 2016 2017 2018 2019 and far-sighted action on behalf of the and Prof. Klaus Josef Lutz, its entire environment. For us, this means opening our of BayWa AG 14,928.1 15,409.9 16,055.1 16,625.7 17,059.0 eyes and minds and thinking outside the box to make Energy Segment 3,264.2 2,976.0 3,594.7 3,968.5 4,474.3 responsible decisions and act responsibly based on Agriculture Segment 10,149.5 10,884.5 10,836.5 11,015.9 10,857.5 knowledge of what is possible. Entitled “Think boldly – Building Materials Segment 1,496.4 1,530.1 1,606.1 1,617.5 1,702.8 act responsible”, the company brochure and the Innovation & Digitalisation Segment 5.2 6.0 6.9 10.7 10.6 particular close-ups inside pick up on this philosophy. Other Activities 12.8 13.3 10.9 13.1 13.7 At the same time, it illustrates how responsible and future-oriented actions are reflected in strategies and EBITDA 288.3 272.6 318.4 315.3 403.0 specific projects at BayWa.

EBIT 158.1 144.7 171.3 172.4 188.4 In the difficult times of Corona and the COVID-19 crisis, responsible action both to adapt our traditional business Energy Segment 77.2 83.1 85.0 96.0 127.4 responsibility has taken on an additional special mean- to the demands of the future and to lead the way with Agriculture Segment 90.1 70.1 82.1 100.1 96.6 ing at BayWa. We at BayWa remain dedicated to the new business areas and models. Our job is to support Building Materials Segment 27.4 28.5 30.1 31.1 32.1 mission that has driven us from the very start and have customers through solutions so that they may combine Innovation & Digitalisation Segment −2.9 −8.6 −10.8 −12.3 −14.6 taken steps to safeguard our ability to service essential financial success and the future viability of their opera- Other Activities −33.7 −28.6 −15.2 −42.5 −53.1 sectors. We are there for agriculture and the building tions with the demands of sustainable business – just trade, providing businesses and private households alike like we do at BayWa. The pages that follow illustrate EBT 88.1 69.6 102.4 92.6 79.2 with electricity and heat. Our employees are hard at what BayWa is capable of achieving here. Net income for the year 61.6 52.7 67.2 54.9 61.1 work around the world making sure that the sectors of Thereof: profit due to minority shareholders 13.4 21.6 27.9 22.6 24.4 the that play a pivotal role in keeping people Thereof: profit due to shareholders of the parent company 48.2 31.1 39.3 32.3 36.7 supplied with food and other essentials remain up and With the very best regards, running. Total assets (as at 31/12) 6,036.7 6,474.9 6,488.0 7,511.5 8,867.2 Non-current assets 2,287.2 2,355.7 2,396.9 2,476.9 3,276.6 Still, there are issues and challenges that need to Current assets 3,739.7 4,094.2 4,077.4 5,030.4 5,585.9 be mastered regardless of the crisis. Sustainability and Non-current liabilities 2,191.5 2,292.2 2,065.7 2,074.7 3,131.5 climate action require us to employ bold thinking and Prof. Klaus Josef Lutz Current liabilities 2,769.3 3,084.3 2,986.8 4,047.7 4,377.1 Equity 1,075.9 1,098.3 1,435.5 1,389.1 1,358.6 Equity ratio in % 17.8 17.0 22.1 18.5 15.3

Share capital (as at 31/12) in € million 89.0 89.3 89.6 89.9 90.3 Number of shares (as at 31/12) in million shares 34.8 34.9 35.0 35.1 35.3 Dividend per share in € 0.85 0.85 0.90 0.90 0.951 Contents

Number of employees (as at 31/12) 16,578 16,711 17,323 17,864 19,193 02 The Company 10 Energy Segment 30 The Financial Year 2019 1 Subject to approval by the Annual General Meeting 04 Responsibility and 16 Agriculture Segment 31 At the Capital Market Sustainability 22 Building Materials Segment 32 Overview of the Financial 26 Innovation & Digitalisation Year 2019 Segment 34 Consolidated Balance Sheet 28 Sustainability as at 31 December 2019 35 Consolidated Income Statement 2019 36 The BayWa Foundation

2 The Company The Company

Companies have a future if they common good and in the inter- – without a rating – offer their customers benefits ests of future generations. In- to issue a green bond that will and provide solutions for the creasingly, sustainability is the be used to finance the challenges to come. BayWa AG driving and motivating factor fast-growing global portfolio thinks and acts with this aim in behind the strategic orientation – of wind farms and solar parks mind, brings fresh momentum with an impact at all levels: at the subsid- to its existing activities and taps in the long-standing business iary BayWa r.e. BayWa also into innovative business areas. with customers from the agri- acknowledges its responsibility That keeps BayWa fit for the cultural, conventional energy as a major employer. As a future. The regionally rooted and building materials divisions; signatory to the “Charta der company in the Energy, Agricul- in the intensification of the Vielfalt” (diversity charter) cor- The Board of Manage- ture and Building Materials renewable energy business; porate initiative, it promotes ment of BayWa AG: Segments has evolved into a in new, sustainable business diversity, equality and inclusion. (from left) Marcus Pöllinger, Reinhard provider of integrated customer ideas; and not least within the About 20,000 people of various Wolf, Klaus Josef Lutz, solutions both regionally and company itself. nationalities work on behalf Matthias Taft, internationally – as a leading of BayWa in more than 40 coun- Andreas Helber project management company Through its Group-wide climate tries worldwide. Their origins, for renewable energy plants, strategy and the aim of being ideas and ways of thinking as a pioneer in the field of digital climate neutral by 2030, BayWa differ, as do their gender identi- applications and as a reliable is making an active contribution ties, ages, religion, personal partner for domestic agriculture. to limiting climate change. Sus- experiences and individual skills. The Board of Management tainability is also gaining impor- BayWa sees this very diversity BayWa pursues solid and profit- tance as part of the financing as a tremendous opportunity able growth while keeping an strategy. In early 2019, BayWa for the company’s further de- eye on its responsibility for the became the first company in velopment. Prof. Klaus Josef Lutz Andreas Helber Marcus Pöllinger Chief Executive Officer Chief Financial Officer since 01/11/2018 since 01/07/2008 since 15/11/2010 Agri Trade & Service, Agricultur- Corporate Audit, Corporate Corporate Controlling, al Equipment, Building Materials, Environment, Health & Safety, Corporate Finance & Account- Digital Farming, Chairman of Corporate Governance, Corpo- ing, Corporate Insurance, the executive and supervisory rate HR, Corporate Legal & Corporate Real Estate Manage- committees of international Compliance, Corporate M&A, ment, Investor Relations, Group in agricultural Corporate Marketing, Corporate Business Services (Finance trade, building materials and Risk, Corporate Strategy & Inno- Services, HR Services, Corpo- agricultural equipment vation, Corporate Sustainability, rate Purchasing & Services), Energy Agriculture Building Materials Innovation & Digitalisation Group-IT/CIO-Organisation, Member of the executive and Renewable Energies BAST Building Materials Digital Farming and eBusiness PR/Corporate Communica- supervisory committees of Project planning, services, (BayWa Agri Supply & Trade) Trading activities for building Development and sales of tions/Public Affairs, BayWa the international agriculture Matthias Taft energy trade, PV trade, International trade in products, materials, services, system digital solutions for agriculture, Foundation, BayWa Agri Supply and holdings since 01/04/2015 energy solutions supply chain management solutions BayWa Portal & Trade (BAST), Global Pro- duce, BayWa IT GmbH, Chair- Energy, BayWa r.e., Chairman of Conventional Energy Global Produce man of the executive and the executive and supervisory Mobility solutions, Trade in fruit, cultivation and supervisory committees of the committees of the international trade in heating oil, and marketing of select international agriculture and energy holdings lubricants types fruit holdings Agri Trade & Service Recording, trade in agricultural inputs and products, logistics Reinhard Wolf Agricultural Equipment since 01/09/2013 Trade in , >40 RWA Raiffeisen Ware service and repairs The BayWa Group is , , represented in more than Austria 40 countries worldwide. Allocation of departments as at 01/04/2020

2 The Company The Company 3 Sustainability comes from responsibility

Making sustainability work takes bold think- ing. But a steady hand and far-sighted action are also of the essence. BayWa bases its actions on a sense of corporate responsibility. Sustainability is the driving and motivating force for current business and new concepts alike. In doing so, BayWa strikes a balance between economic factors and environmental concerns – for the company itself, and for its customers.

Paving Tapping unused Thinking Creating Sustainably the way potential sustainably quality of life financing good

With its mission to only use electricity Water and electricity: thanks to float- Organic or conventional? Bad air? No thanks! things generated from renewable energies, ing PV technology, this odd couple is Agriculture can be both. Find The BauGesund concept BayWa’s BayWa is taking climate action – entering into a highly efficient partner- out how BayWa is supporting Building Materials business BayWa issued its first green bond in 2019. not only on its own behalf but also for ship. More on p. 11. sustainability in agriculture. unit offers is bringing solutions The response to the green bond was other companies. More on p. 7. More on p. 17. for healthy indoor air to today’s tremendous, demonstrating the trust energy-efficient designs. people have in BayWa’s sustainability More on p. 23. expertise. More on p. 31.

4 Responsibility and Sustainability Responsibility and Sustainability 5 A multifaceted approach to promoting sustainability

Taking on responsibility for greater sustain­ RE100 initiative. The company is a global ability means leveraging all of the potential leader in food processing and packaging out there – starting with oneself. But it also and has committed itself to source 100% means supporting others to the best of of its energy needs from renewable sources one’s own abilities. In 2019, BayWa joined by 2030. BayWa r.e. is assisting Tetra Pak RE100, a global initiative of more than 190 reach that goal. In 2019, BayWa’s subsidiary respected companies from a wide range of in Thailand installed five photovoltaic units industries. BayWa is the first German com- on factory roofs at Tetra Pak’s local site. pany from the agricultural division to join With more than 3,000 solar modules, the RE100. Companies joining RE100 set a company is now producing its own green public goal to source 100% of their global energy at the location. electricity consumption from renewable sources by a specified year. They disclose Another example of positive momentum their electricity data annually and report is BayWa r.e.’s partnership with Anheuser- transparently on their progress. BayWa Busch InBev (AB InBev). Based in Belgium, plans to already achieve this goal in 2020. the world’s largest group of breweries To do so, it is increasing its investments in plans to source 100% of its electricity in the production of renewable energies for Europe from renewable energies by 2025. self-consumption and is switching to green To meet this target, BayWa r.e. will con- electricity. struct two new solar parks in Spain that The next phase of the energy transition will then supply 14 AB InBev breweries in Through the joint Thanks to its expertise in the fields of Europe with green electricity in the future. solar project, renewable energies, there is still a lot more With this goal in mind, the two companies BayWa r.e. and With the Barth V For a long time, the expansion of renewable The next challenge was transferring this BayWa can do. It can support other compa- have signed the largest pan-European solar Tetra Pak are project, which energies was significantly dependent on model from sunny Spain to . nies as they aim to achieve their sustain­ power purchase agreement to date, with helping to support boasts a total out- government funding measures such as Yet before the year was out, BayWa r.e. ability targets. That is good for everyone – a total installed output of roughly 130 MW Thailand’s energy put of 8.8 MW and guaranteed feed-in tariffs. But that is chang- had proved that solar energy can also be for the environment and society, and for and a term of ten years. By 2022, AB InBev’s transition. Right is located around ing. The energy transition is entering the marketable in Germany under favourable the continued dynamic development of world-famous Budweiser beer will be now, the country 30 kilometres next phase, in which new renewable energy conditions by constructing Barth V. business at BayWa r.e. Like BayWa, Switzer- brewed using electricity sourced entirely imports some 70% east of Stralsund, plants will refinance themselves purely land’s Tetra Pak is also a member of the from renewable sources. of the energy it BayWa r.e. realised through electricity income, without subsi- New participation and investment concepts consumes. one of the first dies. This currently applies to large solar are another trend in the field of renewable German solar parks and is increasingly managed by way energies. Right now, BayWa r.e. is develop- parks to operate of power purchase agreements (PPAs), a ing a wind farm in the German state of entirely without financing model for renewable energies that North Rhine-Westphalia that will give pri- subsidies. usually involves long-term power supply vate individuals an investment opportunity. agreements between two parties. In most The model is particularly interesting for cases, those parties are a power company people who live near solar parks or wind and a customer that purchases the power. farms, as it allows them to become BayWa is setting a benchmark with its renew- stakeholders in the projects. able energy subsidiary. In 2018, BayWa r.e. models also make it possible for citizens constructed the first solar park in Europe and communities to participate and invest that was built without any government sub- in renewable energy projects. In 2019, sidies at all. Located near the Spanish city BayWa r.e. constructed the Schönberg of Seville, the solar power plant Don Rodrigo wind farm, with a total output of 18.8 MW. has an output of 175 megawatts (MW). In Located in the German state of Mecklen- May 2019, this milestone was honoured as burg-West Pomerania, the wind farm is an “Outstanding Project” and a model for owned by Bürgerwindpark Schönberg Europe at The Smarter E, Europe’s largest GmbH & Co. KG. This form of communal solar exhibition. That same year, BayWa r.e. participation promotes the acceptance constructed Don Rodrigo 2, a follow-up of new wind turbines among citizens and project that provides some 30,000 Spanish has the potential to help breathe new life households with a total output of 50 MW into the slow expansion of onshore wind of green electricity. energy in Germany.

6 Responsibility and Sustainability Responsibility and Sustainability 7 Drive and save

The energy transition also calls for a mobility centre, it is focusing on other energy carriers, transition. The aim is to find a carbon-opti- especially liquefied natural gas (LNG), in mised approach to mobility. While the goal is addition to electromobility. As a result, it is clear, the paths to get there are many and able to provide an interesting alternative for various. BayWa is focusing on viable mobility heavy goods transport in particular. Rather The SmartCable concepts that are as efficient and flexible as than setting its sights on a single method, makes it possible possible. In early 2020, it pooled all of its cus- BayWa is interested in promoting sustainable to keep separate tomer-focused activities for carbon-optimised and practically viable mobility concepts. consumption mobility in a subsidiary by founding BayWa The best example is the Light Vehicle profit records for power Mobility Solutions GmbH. centre’s extensive range of offerings for fleet used for vehicle operators are thinking about switching to charging at home Four things set BayWa Mobility Solutions electric vehicles. BayWa performs fleet analy- or at work. GmbH apart: Through its Heavy Vehicle profit sis to draw up an individually tailored concept and provides hands-on support that includes selecting and procuring vehicles, planning and installing charging , and applying for public funding. The third and final profit centre is all about Digital Mobility, with a focus on digital payment systems such as filling station and charging cards. Through cross-acceptance and partnerships, BayWa is able to offer a wide network and provide an optimum level of service, especially for fleet customers. A house that helps protect the climate BayWa thinks connected, both inside and outside the company. For example, BayWa r.e. and the Conventional Energy business unit Lighting, climate control and heating are three few companies are as well-positioned as With its ability work together closely to construct and oper- things no one can do without. But how much BayWa – with energy-efficiency concepts to generate more ate solar carports for customers. BayWa is energy is okay to use to this end? In Germany, for , professional tradesman electricity than its pooling its strengths to make innovative solu- buildings still account for 35% of the total services for heating and climate control, residents consume tions such as solar-based energy systems energy consumption, making them the cause and wood pellets and green electricity on average over for climate technology, power generation and for around 30% of all greenhouse gas emis- for heat and energy provision, as well as the course of a charging infrastructure for electric vehicles sions within the country’s borders. The outdat- support for electricity generation using year, the project market-ready. ed building stock in Germany plays a signifi- photovoltaic energy for in-house consump- spearheaded cant role here. Of the approximately 5.3 million tion and the use of e-mobility. by asset bauen residential buildings in the states of wohnen gmbh and and Baden-Württemberg, over 50% were built A construction project involving BayWa in BayWa in the BayWa Mobility Solutions’ profit centres before 1976. Only 5% of the buildings con- Schrobenhausen, Germany, illustrates the Augsburg-area structed before 1995 have been fully renovat- benefits of pooling competences. The aim village of Hügels- ed and retrofitted. Action is urgently needed of the project is to construct healthy-living ­hart is considered to achieve the climate targets in the building buildings with residential and commercial to be Germany’s sector, such as climate neutrality by from units that will be supplied with ready-to-use first Efficiency 2050 onwards. Better state subsidies, such as heat, cooling and electricity from renewable House Plus colony those planned under the German govern- energies for household use and mobility. built according E-mobility LNG filling stations Filling station cards and systems ment’s climate package, provide an important The solution is energy contracting from to the criteria of • Infrastructure project planning • Project planning and operation • Systems provider for the BayWa incentive. With the link between requirements renewable sources. Here, it involves wood the former • Maintenance and repair • Additional services and Group (filling station cards and and technologies growing ever stronger, pack- pellet heating systems, rooftop photovoltaic German Federal • Operator of infrastructure for offerings for alternative fuels billing systems) age solutions can also be effective. The easier systems and battery storage systems for Ministry for the third parties (e.g. hydrogen for trucks) • Systems provider for third it is for homeowners to take steps towards providing households, cooling systems and Environment, parties (filling station cards and saving energy, the more willing they are to help e-mobility charging stations with electricity. Nature Conserva- billing systems) support climate action. After all, lower energy As a mobility provider, BayWa is also help- tion, Building and • Marketing and sale of digital consumption also means lower costs. ing to market excess electricity and pur- Nuclear Safety. products from the mineral oil, chase green electricity depending on the logistics and transport industries When it comes to reducing the greenhouse degree of self-sufficiency. gas emissions attributable to buildings,

8 Responsibility and Sustainability Responsibility and Sustainability 9 Left PV modules for generat- ing solar energy can be found on solar parks and in rooftop systems. Energy Segment

The Energy Segment pools renewable energies and the trade in conventional energy sources. Under the umbrellaFloating of BayWa r.e. renewable energy GmbH, the Renewable Energies business unit covers the entireenergy project business in the field of wind and solar energy. BayWa r.e. also trades in photovoltaic components and storage technology The expansion of renewable Also located near Zwolle, the for installers andenergies develops is essential innovative to achiev- solar solutions park – with a total output for the provisioning of climate energy. targets. ButAlong only withof 27.4 Europe MW and 73,000 individu- a limited number of suitable al PV modules – took just seven Tapping unused potential and North America,locations BayWa for renewable r.e. energy is active weeks in to complete the and connect Not every inch of land in -Pacific regionplants is andavailable. in BodiesAustralia. of toIn the the grid. Conven- Germany is suitable for water provide an alternative with renewable energy plants. tional Energy businesstremendous potential.unit, BayWa Floating sellsFloating heating photovoltaic power But the country needs oil, fuels, lubricants,photovoltaic AdBlue plants on andartificial wood comes pellets, with a host of advantag- as many such plants as bodies of water that are not used es, such as easy installation, the possible for the energy mainly in southernby the public,Germany such as decom and- Austria.added yields provided by the transition to succeed. The focus of themissioned newly open-pit founded mines, excaBayWa- water’s Mobility cooling effect and lower The Fraunhofer Institute vation sites or reservoirs, have maintenance costs. Despite still for Solar Energy Systems Solutions GmbHthe is potential to shape to make thean impor field- being of slightlycarbon- more expensive ISE is therefore performing optimised mobilitytant contribution through to the electromobility, energy than free-standing solar parks, research on technologies transition in Europe. the cost of floating photovoltaic such as land-neutral LNG (liquefied natural gas) and digitalplants ismobility expected to fall as the photovoltaic power. The products and services.Working with partners, BayWa new form of electricity genera- potential of unused bodies r.e. renewable energy GmbH tion is optimised. In the Nether- of water and floating constructed three floating lands, higher feed-in tariffs are photovoltaic power is huge. photovoltaic plants in 2019 and making this form of solar park Germany’s nearly 500 lakes completed Europe’s largest possible today. And in southern created from decommis- floating solar park in early 2020, Europe, floating photovoltaic sioned open-pit mines making BayWa r.e. one of the plants of 50 hectares or more offer a technically usable world’s leading project develop- will soon be possible without installation potential of Key figures for 2019 ers in this field. The plant in state subsidies. As a full-service around 56 gigawatts (GW) Sekdoorn, near the Dutch city provider, BayWa r.e. takes care for floating photovoltaic of Zwolle, offers a total output of the entire process, from plants. The total potential of 14.5 megawatts (MW) and project development, planning, of all 4,474 unused artificial provides solar power to almost procurement and financing to lakes is significantly higher. 4,000 households. Thanks to turnkey construction, commis- The same is true through­ €4.5 bnthe system’s efficient design, 26sioning %and management. out Europe. Studies by the in revenues which was developed in-house,share Besidesin consolidated its current revenues project pipe- World Group indicate it took just six weeks to install line, the BayWa AG subsidiary that 1% of the artificial the nearly 40,000 photovoltaic is working on additional pending freshwater bodies would (PV) modules. In early 2020, projects in Europe. The plans be enough to generate BayWa r.e. demonstrated that call for floating photovoltaic 20 GW of green energy. the expansion of renewable plants with a total output of energies has the potential to around 100 MW. progress even faster by building the world’s largest floating photo- employees2,812 (annual average) voltaic plant outside of China.

10 Energy Segment Energy Segment 11 Left PV modules for generat- ing solar energy can be found on solar parks and in rooftop systems.

Key data of the Energy Segment

in € million 2015 2016 2017 2018 2019

Revenues 3,264.2 2,976.0 3,594.7 3,968.5 4,474.3 EBIT 77.2 83.1 85.0 96.0 127.4 Employees (Number) 1,825 1,911 2,079 2,407 2,812 Floating

Key operating data of the Energy Segment energy 2015 2016 2017 2018 2019

Renewable Energies 1 Wind, realised output capacity in MW 205.2 121.1 182.6 61.9 125.4 The expansion of renewable Also located near Zwolle, the 2 Wind, sold output capacity in MW 164.2 89.2 260.2 116.2 282.8 energies is essential to achiev- solar park – with a total output 1 Solar, realised output capacity in MW 86.6 141.3 222.3 153.3 307.3 ing climate targets. But only of 27.4 MW and 73,000 individu- Solar, sold output capacity2 in MW 123.1 123.7 147.7 324.0 628.3 a limited number of suitable al PV modules – took just seven Tapping unused potential Biogas, realised output capacity1 in MW 3.1 2.6 − − − locations for renewable energy weeks to complete and connect Not every inch of land in 2 Biogas, sold output capacity in MW − − 6.6 12.3 0.5 plants is available. Bodies of to the grid. Germany is suitable for PV trading, sold capacity in MWp 245.6 272.3 425.4 544.1 927.0 water provide an alternative with renewable energy plants. Biomethane, sold output capacity tremendous potential. Floating Floating photovoltaic power But the country needs in GWh 1,153.0 1,338.0 1,550.0 1,280.0 − photovoltaic plants on artificial comes with a host of advantag- as many such plants as Geothermal, sold output capacity2 possible for the energy in MW − 11.0 − − − bodies of water that are not used es, such as easy installation, the by the public, such as decom- added yields provided by the transition to succeed.

Conventional Energy missioned open-pit mines, exca- water’s cooling effect and lower The Fraunhofer Institute Sales volume in ktonnes vation sites or reservoirs, have maintenance costs. Despite still for Solar Energy Systems Heating oil 1.047,0 1.013,9 1.024,9 936,0 1.002,6 the potential to make an impor- being slightly more expensive ISE is therefore performing Fuels 1.466,0 1.477,5 1.499,0 1.690,9 1.522,9 tant contribution to the energy than free-standing solar parks, research on technologies Lubricants 27,1 25,6 27,1 26,4 25,5 transition in Europe. the cost of floating photovoltaic such as land-neutral Wood pellets 359,5 401,3 457,6 464,1 576,9 plants is expected to fall as the photovoltaic power. The Number of stations 278 272 279 281 125 Working with partners, BayWa new form of electricity genera- potential of unused bodies r.e. renewable energy GmbH tion is optimised. In the Nether- of water and floating 1 Realised output capacity: commissioning of plants in the respective financial year constructed three floating lands, higher feed-in tariffs are photovoltaic power is huge. 2 Sold output capacity: sale of plants in the respective financial year photovoltaic plants in 2019 and making this form of solar park Germany’s nearly 500 lakes completed Europe’s largest possible today. And in southern created from decommis- floating solar park in early 2020, Europe, floating photovoltaic sioned open-pit mines making BayWa r.e. one of the plants of 50 hectares or more offer a technically usable Energy Segment world’s leading project develop- will soon be possible without installation potential of ers in this field. The plant in state subsidies. As a full-service around 56 gigawatts (GW) Sekdoorn, near the Dutch city provider, BayWa r.e. takes care for floating photovoltaic Renewable Energies* Conventional Energy of Zwolle, offers a total output of the entire process, from plants. The total potential of 14.5 megawatts (MW) and project development, planning, of all 4,474 unused artificial • Solar energy • Liquid fuels provides solar power to almost procurement and financing to lakes is significantly higher. • Wind energy • Lubricants 4,000 households. Thanks to turnkey construction, commis- The same is true through­ • Operational management • Wood pellets the system’s efficient design, sioning and management. out Europe. Studies by the • Energy trading • Contracting which was developed in-house, Besides its current project pipe- World Bank Group indicate • Solar trading • Filling stations • Energy solutions • Carbon-optimised mobility it took just six weeks to install line, the BayWa AG subsidiary that 1% of the artificial the nearly 40,000 photovoltaic is working on additional pending freshwater bodies would * Activities pooled in BayWa r.e. renewable energy (PV) modules. In early 2020, projects in Europe. The plans be enough to generate GmbH BayWa r.e. demonstrated that call for floating photovoltaic 20 GW of green energy. the expansion of renewable plants with a total output of energies has the potential to around 100 MW. progress even faster by building the world’s largest floating photo- voltaic plant outside of China.

10 Energy Segment Energy Segment 11 Renewable Energies

Every challenge is also an opportunity. For the in Seoul, the capital of South Korea. The office’s Renewable Energies business unit, climate change main areas of business are solar and wind projects, and renewable energies as the appropriate response as well as wholesale trade involving photovoltaic (PV) have so far formed the foundation of ten successful components. A new distribution centre was also years for BayWa r.e. renewable energy GmbH, which set up in the Philippines. BayWa r.e. continued its pools BayWa’s renewable energy business. Since expansion in North America by acquiring National 2013, BayWa r.e. has helped to place an installed Solar Distributors, a leading Canadian solar trader. output of some 3 gigawatts (GW) on the grid around The company supplies solar installers from the the world by planning and realising renewable energy Atlantic to the Pacific. Moreover, the acquisition of plants. With the global energy transition only just the Canadian software provider PowerHub supports beginning, the growth prospects remain good. A faster the use of digital technology in the management conversion to emission-free technologies is just of renewable energy plants. In Europe, BayWa r.e. as important as bolder approaches and innovative expanded its activities on the Iberian Peninsula concepts. As a leading player in the field of renewable by strengthening the existing location in Barcelona energies, BayWa r.e. has helped set the course for and opening a new office in Madrid. Founded in this development. late 2018, BayWa r.e. Clean Energy S.r.l., the Group’s Milan-based Italian subsidiary for energy trading, With BayWa r.e. looking after systems with a total The global expansion of its activities was one of signed its first direct marketing contracts for more of 8.3 GW worldwide, service staff sometimes have BayWa r.e.’s focal points in the financial year 2019. than 70 plants with an installed output of 200 mega- to go to dizzying heights to get the job done. In the Asia-Pacific region, it opened a new office watts (MW).

Floating PV load testing performed by 200 employees of BayWa r.e. and the joint venture GroenLeven B.V. at the Weperpolder pilot plant in the . Approx. GW As a full-service partner, BayWa r.e. covers all 13 material links in the renewable energy value chain. is the size of BayWa r.e.’s pipeline in the field of Its business portfolio is diversified by country, energy wind and solar energy. Some 1.2 GW are in the carrier and business activity. This strategy opens renewable energy plant sale pipeline for 2020. up wide-ranging growth potential, reduces risks and stabilises business development. Business activities are divided into three areas: Projects, Services and Solutions.

The Projects area is globally active in the project busi- ness, from planning, project management and the >700 construction of wind farms and solar parks through renewable energy projects (wind and solar energy) to the sale of finished plants. In 2019, the division’s have been completed by BayWa r.e. worldwide activities included the start of construction on the since its founding 2009. For many of these projects, Lyngsåsa wind farm in southern Sweden. The farm’s the company continues to provide commercial 22 wind turbines provide a total output of 94.6 MW, and/or technical maintenance services even after making Lyngsåsa one of the largest wind farms that their sale. BayWa r.e. has built to date.

The Services area comprises planning and technical services, the technical and commercial management of existing plants, the maintenance of plants and Approx. GWh energy trading. Branches in Europe and South East 250 Asia guarantee international BayWa r.e. customers of green electricity, to be produced in future by 24-hour service and currently provide support for two solar parks slated for construction in Spain, plants around the world with an installed total output will be provided annually by BayWa to the brewing of around 8.3 GW. In energy trading, BayWa r.e. mar- company AB InBev. The partnership between kets electricity generated from renewable sources. BayWa r.e. and AB InBev is outlined in a 10-year Direct marketing volume stood at 3.5 GW in 2019. The virtual power purchase agreement with an option service business was expanded in 2019 by acquiring for extension.

12 Energy Segment Energy Segment 13 Wood pellets from sustainable Conventional Energy forestry

Fossil fuels are increasingly coming under criticism, giving environmentally friendly Being open for alternatives is the essence of BayWa and climate-neutral energy carriers a boost. AG’s Conventional Energy business unit. The business That effect is also benefiting wood pellets, unit is tapping into new opportunities in the energy which BayWa supplies to its customers in top world in addition to its current activities. Today, BayWa product quality, from sustainable forestry and is building on its past commitment to renewable re- by way of a closely linked logistics network. sources such as biodiesel and the distribution of wood Due to the rising demand, WUN Pellets GmbH pellets to focus on suitable forms of future mobility. in Wunsiedel, Germany, in which BayWa For BayWa, allowing for potential rather than limiting holds a 30% stake, increased its production itself means paving the way for carbon-optimised capacity from 110,000 tonnes to 150,000 concepts. Through it all, BayWa still continues to pro- tonnes a year in the first quarter of 2020. vide rural regions in particular with heating oil, fuels BayWa provides raw materials to the plant and lubricants and offers individual contracting solu- and markets the pellets. tions for energy and heating in buildings.

The activities that have since been pooled in BayWa Mobility Solutions GmbH – liquefied natural gas (LNG), electromobility and digital mobility – started in the Conventional Energy business unit. Because it pro­ with BayWa r.e., green electricity plays an increasingly duces fewer greenhouse gas and nitrogen oxide emis- important role. For example, BayWa r.e. provides power sions compared to diesel, LNG is an environmentally for the four high-performance charging stations that friendly alternative fuel, especially for heavy goods have been in operation outside BayWa’s corporate BayWa r.e.’s O&M control centres (for Operation & Maintenance) provide 24/7 monitoring, data analysis transport. In January 2020, the first LNG filling station headquarters in since the summer of 2019. and constant reports for plants worldwide. was opened in Wolfsburg, Germany. BayWa has part- These hyperchargers are the first publicly accessible nered with Volkswagen AG, which plans to convert charging stations both installed and operated by BayWa. its internal logistics fleet to LNG trucks. Additional Payments can be made using all common charging stations are scheduled to open in Nördlingen, Nurem- cards and the BayWa filling station card, which can now Forsa Energy’s British renewable energy business. Ventures GmbH in 2018. The company checks the berg and Munich. be used at 95% of the public charging infrastructure In Germany, the company signed new deals with the energy sector for innovative start-ups with promising throughout Germany. Thanks to its partnership with Group and with Siemens Gamesa Renewable approaches in the fields of digitalisation, storage and In the field of electromobility, the focus is on planning, the service provider has-to-be GmbH, BayWa is also Energy Germany. electromobility in order to acquire a stake as a project management, installation and the maintenance able to provide billing services for electricity charging lead- or co-investor at an early stage. The affiliated of charging infrastructure. Thanks to the partnership stations. Solar trading and energy solutions are pooled in the company Raycatch is proof of the value of these Solutions area. As one of the world’s leading whole- efforts. In 2019, the start-up unveiled its AI-based salers, BayWa r.e. markets and sells PV systems DeepSolar™ analysis software, which allows the owners Hyperchargers speed up and components and maintains a vast network of over and operators of large solar power plants to optimise the charging process. 7,000 installers and sales partners. Energy solutions their facilities and increase their yields. At the Inter- focuses on the development and implementation solar Europe 2019 trade fair, both Raycatch and of tailored energy solutions for commercial and indus- BayWa r.e. earned an award for this in the “photovoltaic” trial customers, from own generation to the provision category. Another example is the Berlin-based start-up of green energy. Zolar. BayWa r.e. Energy Ventures invested in the company in 2019. Zolar’s online configurator takes The success of the global energy transition also care of the design of photovoltaic plants. The plat- depends on the use of innovative technologies. form’s user-friendly interface even allows private indi- To make consistent use of the latest developments, viduals with little expertise to make a sound decision. BayWa r.e. founded the subsidiary BayWa r.e. Energy Last but not least, the affiliated company Blixt is the first to provide digital fuses and circuit breakers for private households. The innovation is revolutionis- ing fuse boxes and transforming them into digital control centres. The lack of mechanical parts makes it possible for the digital fuse to break the circuit Approx. 3,400 MW in a fraction of a second, which offers tremendous potential for energy savings. In March 2019, the con- of solar energy is managed by BayWa r.e. worldwide every cept earned Blixt the CleanEquity Monaco Award day. Some 1,600 MW of that was installed and connected in the category “Excellence in the Field of Environ- to the grid by the company itself. mental Technology Development”.

14 Energy Segment Energy Segment 15 Left Still green wheat – supplying the earth’s growing population with food is an important challenge for agriculture. Agriculture Segment

In the Agriculture Segment, BayWa covers the entire value chain from the field to the marketing of products, makingHow it one of sustain Europe’s leading ­ trading companies with a global reach. Its range of services includesability international tradeis gainingand logistics for select agricultural and specialities, as well as the sale of agricultural inputs and feedstuffs,ground predominantly in Germany and Austria. The Global Produce business unit Crop protection by drone also makes the BayWaGroup is committed a global to making player to inname fruit just one and example. In Every year, the corn borer vegetable trading,all forms allowing of agriculture it responto market- terms a of wideseed alone, destroys some 4% of the sible. Alongside conventional can choose from over 60 organ- world’s corn harvest, range of pome fruit,agriculture, tropical the spotlight is andic sowing other grain, grassland, for- approximately 41 million high-quality fruitincreasingly and vegetable shifting towards products age crops around and individual seed tonnes. Thanks to the organic farming. What organic varieties. And on the BayWa combination of biology, the world. Machineryagriculture for needs agriculture above all Portal,as well customers as can now find digital applications and the the municipal sector,are local value along chains with with the the constructionsome 500 products for live- latest technology, help is corresponding processing and stock farming, soil fertility and on the way – from the air. and maintenancemarketing of agricultural structures. To this buildings seed by checking and out the organ- Using a drone, farmers can systems, are anotherend, BayWa core is gradually competence expand- ic agriculture of BayWa. offerings. release ichneumon wasps ing its organic offerings and larvae over their fields The offerings rangeits marketing from structures the sale in the of newDigital solutionsmachin promise- at an optimal point in time ery, maintenanceregions and and repairs, is converting to agri the- greatermarketing sustainability for agri- along a digitally planned cultural operations to meet the culture. Through its subsidiary route. A natural enemy of used machinery.requirements of organic agri- FarmFacts, BayWa has become of the corn borer, the culture. The most recent exam- a pioneer in this field through- ichneumon wasp destroys ple is the site of BayWa’s Agri out Europe. Under the the plant pest, reducing Trade & Service business unit in name NEXT Farming, it provides the use of chemical crop Heilbronn, Germany, which has a wide range of applications protection products, been certified for the recording such as site-specific farm man- avoiding the damage to Key figures for 2019 of organically produced agricul- agement. The method involves crops that can be caused tural products since the sum- surveying small parcels of the by vehicles and safeguard- mer of 2019. Some 130 sites of soil to ascertain its characteris- ing yields. In 2019, the BayWa’s Agri Trade & Service tics, creating the basis for total area of land treated business unit have already been targeted farm management by BayWa experts using certified for agricultural input using TalkingFields maps. The this method doubled year € 10.9trading bn for organic agriculture. 64result: Precise% use of seed, on year. in revenues BayWa is also a member of sharefertilizer, in consolidated crop protection revenues prod- Biokreis e.V., the fourth-largest ucts and water – leading to a organic agriculture association substantial reduction in the in Germany, and is a licensed consumption of agricultural user of the “Bayerisches Bio- inputs, a lower nitrate load in Siegel” (Bavarian organic seal). groundwater, healthy crops At the same time, BayWa is in the long term and an improved constantly expanding its prod- sustainability balance coupled uct range through its own organ- with higher yields. employees10,580 (annual average) ic seed propagation efforts,

16 Agriculture Segment Agriculture Segment 17 Left Still green wheat – supplying the earth’s growing population with food is an important challenge for agriculture.

Key data of the Agriculture Segment

in € million 2015 2016 2017 2018 2019

Revenues 10,149.5 10,884.5 10,836.5 11,015.9 10,857.5 EBIT 90.1 70.1 82.1 100.1 96.6 Employees (number) 9,997 10,212 10,613 10,428 10,580 How sustain­

Key operating data of the Agriculture Segment is gaining Sales volume in ktonnes ability 2015 2016 2017 2018 2019

BAST / Agri Trade & Service Grain 19,473.0 21,512.4 21,859.9 19,116.4 20,188.6 Oilseed and additional products 10,706.9 12,275.4 11,514.2 13,946.8 12,054.0 ground Fertilizers 2,479.7 2,429.4 2,414.9 2,268.5 2,317.2 Seed 270.0 256.8 265.5 251.6 236.9 Crop protection by drone Feedstuff 2,148.5 1,632.7 2,051.3 2,639.0 2,549.9 BayWa is committed to making to name just one example. In Every year, the corn borer Global Produce all forms of agriculture respon- terms of seed alone, farmers destroys some 4% of the Dessert pome fruit 236.4 205.7 256.3 260.7 247.6 sible. Alongside conventional can choose from over 60 organ- world’s corn harvest, Soft and stone fruit 21.3 25.1 14.1 17.0 27.8 agriculture, the spotlight is ic sowing grain, grassland, for- approximately 41 million Tropical fruits 58.5 81.8 58.0 59.1 86.8 increasingly shifting towards age crops and individual seed tonnes. Thanks to the Vegetable fruits 18.9 19.4 20.3 15.1 18.3 organic farming. What organic varieties. And on the BayWa combination of biology, Agricultural Equipment agriculture needs above all Portal, customers can now find digital applications and the Number of sold – new 3,986 3,529 3,659 4,815 4,617 are local value chains with the some 500 products for live- latest technology, help is Number of tractors sold – used 1,789 1,663 1,873 1,760 1,936 corresponding processing and stock farming, soil fertility and on the way – from the air. marketing structures. To this seed by checking out the organ- Using a drone, farmers can end, BayWa is gradually expand- ic agriculture offerings. release ichneumon wasps ing its organic offerings and larvae over their fields its marketing structures in the Digital solutions promise at an optimal point in time regions and is converting agri- greater sustainability for agri- along a digitally planned cultural operations to meet the culture. Through its subsidiary route. A natural enemy Agriculture Segment requirements of organic agri- FarmFacts, BayWa has become of the corn borer, the culture. The most recent exam- a pioneer in this field through- ichneumon wasp destroys ple is the site of BayWa’s Agri out Europe. Under the brand the plant pest, reducing BAST (BayWa Agri Supply & Trade) Global Produce Trade & Service business unit in name NEXT Farming, it provides the use of chemical crop Heilbronn, Germany, which has a wide range of applications protection products, International trade in products, Trade in fruit, cultivation and marketing of supply chain management select vegetable types been certified for the recording such as site-specific farm man- avoiding the damage to of organically produced agricul- agement. The method involves crops that can be caused tural products since the sum- surveying small parcels of the by vehicles and safeguard- mer of 2019. Some 130 sites of soil to ascertain its characteris- ing yields. In 2019, the Agri Trade & Service Agricultural Equipment BayWa’s Agri Trade & Service tics, creating the basis for total area of land treated business unit have already been targeted farm management by BayWa experts using Recording, trade in agricultural inputs and Trade in agricultural machinery, service and products, logistics repairs, agricultural buildings certified for agricultural input using TalkingFields maps. The this method doubled year trading for organic agriculture. result: Precise use of seed, on year. BayWa is also a member of fertilizer, crop protection prod- Biokreis e.V., the fourth-largest ucts and water – leading to a organic agriculture association substantial reduction in the in Germany, and is a licensed consumption of agricultural user of the “Bayerisches Bio- inputs, a lower nitrate load in Siegel” (Bavarian organic seal). groundwater, healthy crops At the same time, BayWa is in the long term and an improved constantly expanding its prod- sustainability balance coupled uct range through its own organ- with higher yields. ic seed propagation efforts,

16 Agriculture Segment Agriculture Segment 17 BayWa Agri Supply & Trade

The global population keeps growing. Agricultural By expanding the international specialities business, production and trade therefore face the most impor- BayWa is serving the food and feedstuff industry’s tant task of all: safeguarding the global supply of food. growing demands. At the same time, its specialities The only way for that to succeed is to increase global strategy is helping diversify its product portfolio production and improve efficiency when it comes to and make it even more independent of the volatilities logistics and the consumption of resources. In its role of standard exchange-traded products. as a key international player, BayWa Agri Supply & Trade (BAST) supports the European market. Certified Responsible Soya (CRS) Global soya production has increased by nearly 25% Within the BayWa Group, the BAST business unit since 1999. Despite greater productivity, a large pools the international trade of grain, oilseed meal proportion of the rising demand has been met by and specialities covering the entire value chain from increasing the amount of land under cultivation, often sourcing through to logistics and sales. Its customers leading to the destruction of precious forests, water include both local and international grain and oil scarcity and soil erosion. The BayWa subsidiary mills, breweries and malt houses, as well as feed manu- Cefetra joined forces with partners in 2008 to establish facturers and producers of biofuel. BayWa is one of the Certified Responsible Soya (CRS) standard with BayWa is one of the world’s leading the largest importers of soya bean meal for the Euro- the aim of counteracting such negative developments suppliers of fruit and . pean feedstuff industry. The annual trading volume through the responsible cultivation of soya. In Brazil, of the BAST business unit stands at around 25 million Argentina and Paraguay, already 57 farms with a total tonnes: grains in various qualities, soya and soya prod- of around 180,000 hectares of land under cultivation ucts, related products and specialities such as leg- meet this standard. As part of the sustainability pro- Global Produce umes and various organic food ingredients like chia, gramme, Cefetra is focused on a long-term relationship quinoa, starch and wheat gluten. with existing partners and the expansion of the certi­ fication programme to new operations. Along with In recent years, BayWa has expanded its scope and its internal CRS criteria, Cefetra also offers soya that Fruit and vegetables are healthy and an important part its product range through a series of international has been certified in accordance with the external of a balanced diet. As a result, consumers expect a acquisitions and investments. Furthermore, it is con- Roundtable of Responsible Soy (RTRS) and ProTerra wide range of options all year round. Through its global stantly working to strengthen the performance and (non-GMO) standards. network, BayWa’s Global Produce business unit is efficiency of its supply chain and its logistics network. making customers’ wishes come true and acts as a strong partner for food retailers and wholesalers alike. As one of the leading single sellers of dessert pome

Product quality and aspects of fruit in Germany, BayWa acquired the New Zealand- sustainability are key criteria in the based company T&G Global Limited (T&G Global) agricultural trade business. in 2012. T&G Global is the largest provider of apples in New Zealand, with international trade links to the Americas, Asia, and Europe. In doing so, Blueberries: a superfood BayWa laid the foundation for the year-round marketing of dessert pome fruit from the northern and southern BayWa is expanding and transforming its hemispheres. By acquiring additional players such as business with blueberries into a premium TFC Holland B.V., an established distributor of fresh category, thereby bolstering its position in tropical products from around the world, the business the international fruit trading business. unit further expanded its product portfolio and tapped To this end, the company entered into a joint into new procurement and sales markets. venture with the Chilean berry producer CarSol at the start of 2020 to conquer key The commitment to forward-thinking initiatives and Asian markets together. T&G Global has also innovations is essential to strengthening and expand- initiated an exclusive cultivation and market- ing a leading market position. In 2019, T&G Global ing programme in cooperation with the New succeeded in doing just that with its work on behalf Zealand Institute for Plant and Food Research. of the Hot Climate Programme. Building on natural The aim of the partnership is to cultivate cross-breeding, the cultivation initiative introduced new blueberry plants that are higher-yielding new varieties with a high level of tolerance against heat and more resilient to disease while also and water scarcity that are also resilient to pest infes- forming tasty berries of a consistent size over tation and disease. T&G Global has been named a longer period of time. the exclusive commercial partner for the marketing of these new varieties.

18 Agriculture Segment Agriculture Segment 19 Humus instead of slurry

Agricultural A high volume of slurry is increasingly becoming a problem, for example for large agricultural Equipment livestock operations or biogas plant operators. The aim is to reduce the nitrogen content in the soil and comply with the strict fertilizer regula- It is impossible to imagine farming today without tions. Since 2019, BayWa’s Agricultural Equip- high-performing, specialised equipment. Digital appli- ment business unit has been cooperating with cations provide farmers with integrated and sustainable Witte, a company that produces humus systems. solutions, for example for tillage, fertilization or harvest- The basic principle of the humus system is to ing. BayWa is not just a competent adviser and sales produce humus containing nitrogen from the partner in this area but also uses digitalisation for produced slurry by combining it with solids such modern customer communication, sales and the opti- as straw, cuttings from extensive grassland or misation of customer service. horse manure. This raw humus can be marketed. Buyers include tree nurseries, fruit and vegetable Along with its bricks-and-mortar stores, BayWa oper- farms, as well as grafting operations that process ates various online platforms that bring buyers and the humus into high-quality peat. BayWa supplies sellers together regardless of opening times and loca- the entire facility – from planning and support tion. On www.baywa-landwirtschaft.de spare parts and in the approval process through to technical accessories are traded, while www.baywaboerse.com construction. offers owners of used agricultural machinery a way to sell their equipment to other private persons. BayWa Technic-Trader offers the opportunity to have used vehicles and machinery valued and sold to BayWa. BayWa records agricultural products such as grain, oilseed and hops after they Online auctions, such as the kind held by the platform and the public sector. It also offers maintenance and are harvested and markets them. www.ab-auction.com, are also very popular internation- repair services, including spare parts. Its services ally. After all, one in five used from BayWa are provided at 281 workshops or directly on-site by is sold abroad and exported to some 40 countries mobile service vehicles. In addition, BayWa is the Agri Trade & Service worldwide. largest sales partner worldwide for the AGCO Group, with its Fendt, Massey Ferguson, Challenger While BayWa has established a strong presence in and Valtra. BayWa is also the leader in the global sale the digital world, bricks-and-mortar remains a of CLAAS agricultural machinery. Its customers include From sowing to harvest, BayWa provides farmers in Trade in agricultural commodities and processed agri- fundamental component of the Agricultural Equipment farms and forestry operations, as well as vineyards, its core geographical region of Germany and Austria cultural products is also becoming increasingly digital- business unit. Locally and on location, BayWa sells fruit farmers, , commercial enterprises with all the necessary agricultural inputs, such as seed, ised. Together with the Unamera start-up and other machinery, devices and systems for agriculture, forestry and private consumers. fertilizers, crop protection and feedstuffs. As a partner partners, BayWa launched a cross-trader digital trading that is completely independent of specific manufactur- and processing platform in 2019. The project aims to ers, BayWa provides farmers with consulting on both create a digital infrastructure that is open to all market Also a woman’s job: training as agricultural and conventional and ecological farming. At the same time, participants. It is also intended to increase market construction machinery mechatronic specialist. BayWa records agricultural products such as grain, transparency for customers and make agricultural trade oilseed and hops after they are harvested and markets processes more efficient. Initial tests were carried out them to local and regional processors, as well as in during the 2019 harvest. In February 2020 the Bundes­ export markets. BayWa’s outstanding warehousing and kartellamt (German federal antitrust authority) approved logistics capacities, including connections to important the digital trading platform with the assessment that it waterways and to the Baltic Sea at the ports in Mukran had the potential to make agricultural trade in Germany and Vierow, help it achieve this goal. significantly more efficient. Following completion of the pilot phase, the platform will see a gradual, product- The focal point when it comes to developing agribusi- by-product launch on the market. ness in Germany is on the modernisation and alignment of the site network towards long-term customer needs, the expansion of e-commerce activities and process optimisation in the logistics chain. The BayWa Portal for agriculture is increasingly complementing bricks-and- mortar retail. The now fully networked multi-channel > 50,000 approach offers opportunities to optimise support for products BayWa is currently providing for agriculture existing customers and intensify the acquisition of new through its BayWa Portal. It offers Germany’s customers outside BayWa’s core region, providing an most extensive selection of agricultural products important foundation for the introduction of digital ser- online, making BayWa the largest online merchant vices and business models. in the German agricultural trade.

20 Agriculture Segment Agriculture Segment 21 Left Wood – a renewable raw material – can be used to build roof trusses, in insulation or to create trendy wooden designs. Building Materials Segment

The Building Materials Segment covers the entire range of products and solutions for building materi- als – from civil engineering,For healthier structural engineering, BayWa construction, renovations, modernisation, BauGesund Geprüfte Qualität, and landscaping, to solution packages for energy natürlich von BayWa b e ay .d w nd efficiency and buildinghealthy building. This range of prod- a-baugesu ucts is aimed at construction companies, municipali- More than just energy ties, trades and commercialA healthy living environment enterprises, as low-emission as well building as prod- efficient renovators and privateis a quality ofindividuals life issue, and buildingucts and havetheir included in the Energy efficient equals energy-efficient building the BauGesund database. This sustainable – that isn’t own homes. In additionorder of the today. this, These twoBayWa database also providescomprises over 7,000 always the case in home customers with necessarya wide andrange aspirational of specialisations low-emission products and from construction. The develop- goals do not necessarily com- various manufacturers across ment process and life a variety of services,plement as each well other. as Energy expertise all trades and and support is constantly being cycle are simply far too when it comes toefficiency innovative demands topics ever denser such expanded. as healthy It serves property complex. Even an Effi- building shells. This results in developers, tradespeople and ciency House Plus which, construction anda lack the of Efficiencyair exchange inside theHouse architects Plus as anenergy important orien- among other things, uses standard. Digitalbuilding, offerings which means are toxins increasingly tation marker. bolster- solar technology to pro- from building materials cannot duce more energy than ing traditional businessescape, leading by to providing higher freshBayWa passes momen on knowledge- its occupants consume tum and additionalconcentrations sales channels. of indoor air Theand key experience regions through its on an annual average is still pollutants. BayWa and its BauGesund partnership. In this far from being structurally for the Building MaterialsBauGesund (healthy Segment building) areway, southern it is able to support region- sustainable. In order to Germany and Austria,concept have where the solution. BayWa isal onecraft enterprises of the and con- build healthy and sustain­ struction companies in the able homes, various factors leading providersThe in Efficiency the building House Plus materialsin implementation trade. and marketing are needed: regional Burghausen, Germany, initiated of healthy housing. BauGesund and low-emission building as a research project of the partners are able to make use materials, sustainable Key figures for 2019 federal research programme of the product database, receive materials and the use of “Zukunft Bau” (future of con- training and phone consultation renewable energies. Other, struction), and Germany’s first during ongoing projects, and less obvious elements Efficiency House Plus colony benefit from joint marketing and also play an essential role near Augsburg are visible proof sales measures. As competent in the assessment of of BayWa’s vast experience in providers, they are then able sustainability, such as € 1.7 bnimplementing a wide range of 10to promote% healthy living and “grey energy” – the energy in revenues building projects that ensure a share distinguishin consolidated themselves revenues in their required to build a house healthy living environment. They regional markets. Upon com- and to transport and pro­ were the first step in what has pletion of a building project, duce building materials and since become the BauGesund and at the request of the cus- construction elements – concept, now replete with a tomer, a BauGesund certifica- or the usage criteria of seal, database and full-fledged tion according to DIN standards the building. partnership. The BauGesund certifies the quality of indoor seal marks materials that air, which also contributes BayWa’s Building Materials to the increased value of the employees4,371 (annual average) business unit has evaluated building.

22 Building Materials Segment Building Materials Segment 23 Left Wood – a renewable raw material – can be used to build roof trusses, in insulation or to create trendy wooden designs.

Key data of the Building Materials Segment

In € million 2015 2016 2017 2018 2019

Revenues 1,496.4 1,530.1 1,606.1 1,617.5 1,702.8 EBIT 27.4 28.5 30.1 31.1 32.1 Employees (number) 4,093 4,081 4,113 4,211 4,371

Key operating data of the Building Materials Segment For healthier BayWa 2015 2016 2017 2018 2019 BauGesund Geprüfte Qualität, Building Materials natürlich von BayWa

b e Number of locations ay .d w nd (including Austrian markets) 221 202 199 200 203 building a-baugesu Surface area in k m2 (all locations) 2,030.0 1,682.1 1,669.8 1,687.0 1,688.9

More than just energy A healthy living environment as low-emission building prod- efficient is a quality of life issue, and ucts and have included in the Energy efficient equals energy-efficient building the BauGesund database. This sustainable – that isn’t order of the day. These two database comprises over 7,000 always the case in home necessary and aspirational low-emission products from construction. The develop- Building Materials Segment goals do not necessarily com- various manufacturers across ment process and life plement each other. Energy all trades and is constantly being cycle are simply far too efficiency demands ever denser expanded. It serves property complex. Even an Effi- Building Materials building shells. This results in developers, tradespeople and ciency House Plus which, a lack of air exchange inside the architects as an important orien- among other things, uses • Structural engineering, extensions, civil engineering, building services building, which means toxins tation marker. solar technology to pro- • Package solutions from building materials cannot duce more energy than • Systems solutions and services for energy efficiency escape, leading to higher BayWa passes on knowledge its occupants consume and healthy building concentrations of indoor air and experience through its on an annual average is still • Digital services (online portal for building materials, pollutants. BayWa and its BauGesund partnership. In this far from being structurally “Mr+Mrs Homes”) BauGesund (healthy building) way, it is able to support region- sustainable. In order to concept have the solution. al craft enterprises and con- build healthy and sustain­ struction companies in the able homes, various factors The Efficiency House Plus in implementation and marketing are needed: regional Burghausen, Germany, initiated of healthy housing. BauGesund and low-emission building as a research project of the partners are able to make use materials, sustainable federal research programme of the product database, receive materials and the use of “Zukunft Bau” (future of con- training and phone consultation renewable energies. Other, struction), and Germany’s first during ongoing projects, and less obvious elements Efficiency House Plus colony benefit from joint marketing and also play an essential role near Augsburg are visible proof sales measures. As competent in the assessment of of BayWa’s vast experience in providers, they are then able sustainability, such as implementing a wide range of to promote healthy living and “grey energy” – the energy building projects that ensure a distinguish themselves in their required to build a house healthy living environment. They regional markets. Upon com- and to transport and pro­ were the first step in what has pletion of a building project, duce building materials and since become the BauGesund and at the request of the cus- construction elements – concept, now replete with a tomer, a BauGesund certifica- or the usage criteria of seal, database and full-fledged tion according to DIN standards the building. partnership. The BauGesund certifies the quality of indoor seal marks materials that air, which also contributes BayWa’s Building Materials to the increased value of the business unit has evaluated building.

22 Building Materials Segment Building Materials Segment 23 Building Materials

The challenges for the construction industry are as commitment to renovate, which is good for the climate, ­demanding as they are varied: creating housing in urban property owners, regional tradespeople and BayWa. centres, ensuring climate-friendly construction and The experts from BayWa’s Building Materials business ­living, targeted implementation of digital solutions and unit ensure that everything concerning the funding runs ­further increasing efficiency in light of the noticeable smoothly and even take over the application process. shortage of skilled labour. As one of the leading compa- Once the time comes for the renovation itself, the build- nies in the building materials trade in ing materials trade is available on site. When modernis- and Austria, BayWa addresses these issues in a solution- ing heating systems, the BayWa Haustechnik GmbH oriented manner and often assumes a pioneering role. ­operations are there to professionally carry out all the necessary work. From installation through to servicing, Climate protection begins at home. The potential for their range of products and services covers the entire

CO2 savings here is enormous throughout Germany, plumbing, heating and cooling technology trade. as the construction of many existing houses and apart- ments is outdated, with both thermal insulation and Besides climate protection, digitalisation is a key focus building technology far behind today’s accepted stand- for BayWa’s Building Materials business unit, and BayWa ards. In order to increase the incentive for renovation has already made considerable progress here. In ­co- and modernisation, the German federal government has ­operation with partners, it is currently implementing an significantly increased the funding measures within the exemplary construction project in Borna near Leipzig: scope of the climate package. BayWa helps people to Germany’s first detached housing residential arearealised ­ Tjiko’s bathroom modules make use navigate the labyrinth of funding and subsidies online with building information modeling (BIM). All aspects of of wooden construction for industrial with its funding database and on-location through indi- the Wohnen am Lerchenberg (Lerchenberg residences) production with a unique character. vidual advice. More clarity here leads to an increased (www.wohnen-am-lerchenberg.de) project are fully digi-

tal, from sale and planning through to construction. The “Mr+Mrs Homes” property configurator provides the Expert advice is what sets a good ­basis for the project. Developed by BayWa and its Group building materials retailer apart. company PURE Applikationen GmbH & Co. KG, the digital platform digitalises the entire construction project from beginning to end. A 3D house model that buyers can use to design their future homes down to the very last detail­ is at the heart of the concept, allowing them to get everything just right before making their decision – and always accompanied by the respective fixed price.

Rethinking wooden construction Customer’s choice Digitalisation is pushing increased efficiency in the con- struction industry in a variety of ways. One example of The BayWa Building Materials Online this is industrial pre-fabrication. The BayWa affiliate portal (www.baywa-baustoffe.de) closes Tjiko GmbH from Rosenheim, Germany, has taken a the loop between online and bricks-and- promising approach in this respect with their production mortar retail. BayWa offers a compre- of bathroom modules made entirely from wood: A fully hensive multi-channel solution for digital process and configurator allow for the serial pro- BayWa’s building materials sales region. duction of individually designed bathrooms complete All customers need to do is select their with interior fittings. The Tjiko bathroom modules are preferred site, search for their desired chiefly aimed at property developers and general con- product range and check stocks and tractors who want to realise an economical and highly prices in real time before making their individualised bathroom design in large residential purchase online and picking up their building projects that primarily make use of wooden ­orders on-site. To make that possible, construction. The cooperation with Tjiko is of special BayWa’s building materials operations ­interest to BayWa due to the confluence of the future- are ­connected to the online portal as oriented topics of digitalisation, wooden construction digital ­locations and can be selected as and industrial pre-fabrication, which are important for pick-up locations by scanning product the construction industry, and the innovative approach availability. that this undertaking offers to increasing productivity in the construction industry.

24 Building Materials Segment Building Materials Segment 25 Left TalkingFields maps: the use of satellite data in agricul- ture helps the environment and farmers alike. Innovation & Digitalisation Segment

With the Innovation & Digitalisation Segment, BayWa is both keeping pace with momentum in this field andFarmers underscoring the strategic impor- tance of innovation for the entire company. This segment pools digital activities, along with the further developmentas of innovativeclimate approaches. The focus is currently on projects in the fields of Soil samples at the click Digital Farming and eBusiness. Digital Farming is of a mouse focused on the development and marketing of Audili, a start-up that stewards won the BayWa Smart digital solutions for agriculture, thereby offering Farming Challenge in farmers new opportunities to optimise operating 2019, develops self-learn- Ever since the European Union Germany could store 2.5 billion ing software that uses processes and allowingadopted its Green them Deal, topro -worktonnes more of carbon cost in total. That satellites to determine soil efficiently andtecting sustainably. the climate has In been eBusiness, means agricultural the focus and forest properties as a substitute one of the top priorities. The ecosystems together store as for labour-intensive soil is on forging tiesgoal between is to take faster, digital more servicemuch organic offer carbon- as Ger- sampling and time-con- ings, such as online­effective purchasing, action to curb green and- manybrick-and- emits in the form of CO2, suming lab analyses. Using house gas emissions and limit at current levels, over 23 years. artificial intelligence, Audili mortar retailers,global and warming on further – an area where advancing The higher the amount of humus supplies new satellite data and optimising adviceagriculture attractsapps. its share of in the soil, the more CO2 it can every five days, and with it, criticism. Yet agricultural land bind. Humus forms through a new analysis of the soil at offers a wealth of untapped various factors, such as diver­ the click of a mouse. The ­potential for actively protecting sified crop rotation and supply- system opens up a whole the climate. Humus formation ing the soil with organic sub- new dimension in sustain- is the solution farmers can use stances through methods such able, efficient crop farming to benefit both the climate at as ­incorporating plant residue with an eye to aspects like large and their own farms. The and fertilizing with compost or formation of humus in the Key figures for 2019 BayWa subsidiary FarmFacts manure.­ soil. BayWa and its Group can help: with its Klima-Land- companies VISTA und wirt (climate ) initiative, The FarmFacts Klima-Landwirt FarmFacts are supporting the company has developed initiative gives this form of sus- Audili in further developing a system that makes building tainable farming an economi- the system and paving the ­humusm both practical and eco- cally attractive ­element: The way for the practical use of €10.6nomically attractive. CO2 bound in the humus can this innovation. in revenues be measured and converted to It’s all based on a law of chem- carbon credits. Selling these

istry. Humus binds carbon, credits to CO2 emitters such as

thereby reducing levels of CO2, industrial and trading compa- a greenhouse gas, by as much nies is an additional line of in- as 5 tonnes per hectare per come for farmers. FarmFacts year. Scientific studies (soil cooperates with the CarboCert condition report of the Thünen carbon credit brokerage to Institute, Braunschweig, 2018) make this possible.­ 198employees (annual average) assume that agricultural land in

26 Innovation & Digitalisation Segment Innovation & Digitalisation Segment 27 Left TalkingFields maps: the use of satellite data in agricul- BayWa markets the products and innovations arising from the Innovation & ture helps the environment Digitalisation Segment in its operational segments. The revenues and earnings from and farmers alike. these sales are therefore allocated to the individual segments. The Innovation & ­Digitalisation Segment derives most of its revenues from sales of software licences and maintenance contracts. Development and investment costs are still reflected in the Innovation & Digitalisation Segment, however. As a result, the segment posted ­negative earnings before interest and tax (EBIT) in spite of its positive revenues, as planned.

Key data of the Innovation & Digitalisation Segment

in € million 2015 2016 2017 2018 2019

Revenues 5.2 6.0 6.9 10.7 10.6 EBIT −2.9 −8.6 −10.7 −12.3 −14.6 Farmers Number of employees (annual average) 97 126 158 183 198 as climate

Digital agriculture thanks to NEXT Farming from FarmFacts Soil samples at the click of a mouse Audili, a start-up that  Software and supporting stewards won the BayWa Smart ­services, such as determining Specific financial products Farming Challenge in fertilizer requirements, for farmers, from upfront site-specific management 2019, develops self-learn- financing for harvests to hedging against risks Ever since the European Union Germany could store 2.5 billion ing software that uses NEXT Finance NEXT Field adopted its Green Deal, pro- tonnes of carbon in total. That satellites to determine soil tecting the climate has been means agricultural and forest properties as a substitute one of the top priorities. The ecosystems together store as for labour-intensive soil goal is to take faster, more much organic carbon as Ger- sampling and time-con-

­effective action to curb green- many emits in the form of CO2, suming lab analyses. Using NEXT Farming Intelligent house gas emissions and limit at current levels, over 23 years. artificial intelligence, Audili connectivity for NEXT global warming – an area where The higher the amount of humus supplies new satellite data NEXT Farm mixed fleets (“NEXT Digital procure- Marketplace Manage- agriculture attracts its share of in the soil, the more CO2 it can every five days, and with it, ment platform ment by aag”); soft- criticism. Yet agricultural land a new analysis of the soil at for agricultural ware for operational bind. Humus forms through businesses management, culti- offers a wealth of untapped various factors, such as diver­ the click of a mouse. The vation planning and system opens up a whole documentation ­potential for actively protecting sified crop rotation and supply- the climate. Humus formation ing the soil with organic sub- new dimension in sustain- NEXT Sustainability is the solution farmers can use stances through methods such able, efficient crop farming to benefit both the climate at as ­incorporating plant residue with an eye to aspects like large and their own farms. The and fertilizing with compost or formation of humus in the

Klima-Landwirt (climate farmer) initiative BayWa subsidiary FarmFacts manure.­ soil. BayWa and its Group can help: with its Klima-Land- companies VISTA und wirt (climate farmer) initiative, The FarmFacts Klima-Landwirt FarmFacts are supporting the company has developed initiative gives this form of sus- Audili in further developing The next big thing: robotics for sustainable agriculture a system that makes building tainable farming an economi- the system and paving the ­humus both practical and eco- cally attractive ­element: The way for the practical use of

Monotonous, physically demanding work is a pain for anyone, and to be able nomically attractive. CO2 bound in the humus can this innovation. to do without chemicals is always good – robotics in agriculture makes this be measured and converted to ­possible. All over the world, start-ups are working to develop agricultural robots It’s all based on a law of chem- carbon credits. Selling these

for tasks such as harvesting apples and mechanically controlling weeds in vine- istry. Humus binds carbon, credits to CO2 emitters such as

yards, tree nurseries and places where fruits and vegetables are grown. thereby reducing levels of CO2, industrial and trading compa- T&G Global tested its first commercial picking robot during this year’s harvest. a greenhouse gas, by as much nies is an additional line of in- Through the Robotic Challenge 2019 competition, BayWa and RWA supported as 5 tonnes per hectare per come for farmers. FarmFacts the advancement of autonomous field robots like these toward market readi- year. Scientific studies (soil cooperates with the CarboCert ness. At the International Green Week 2020 in Berlin, they presented two condition report of the Thünen carbon credit brokerage to ­agricultural robots, “Oz” and “Vitirover”, whose role is to control weeds and Institute, Braunschweig, 2018) make this possible.­ all that without any chemicals or grumbling. assume that agricultural land in

26 Innovation & Digitalisation Segment Innovation & Digitalisation Segment 27 Climate neutrality by 20305

Sustainability100 % +10 GW Percentage of elec- Generation capacities tricity needs covered of renewable energies with renewable by 20251 energies by 2020 Climate targets Halting climate change, feeding a growing global Additional information is available population, shaping digitalisation and demo- in BayWa’s sustainability report at: www.baywa.com graphic change – those are the key challenges – 22 % – 22 % facing the world of politics,Greenhouse society Energy at consumptionlarge and gases by 20251 by 2025 1, 2 the business sector today. As an internationally operating business, BayWa is no exception in ­having to tackle these changes and live up to its responsibility to balance international growth and the interests ofBayWa’s future generations. Basedclimate on its Climate-neutral core values of innovation, solidity and trust, business practices at BayWa has aligned its sustainability strategy Global Produce strategy The Global Produce toward four fields of action: market, environment business unit has been and climate, employees as well as quality of life. leading by example in terms of climate-neutral The company’s Withsustainability its Group-wide climate activities its energy are goal. geared Of the electricity business practices since towards severalstrategy, overarching BayWa aims to goals: help sustainableused, over 70% was derived 2016. Following the largest keep global warming significant- from renewable sources. production location, in business practices,ly below conserving 2 degrees Celsius. Thisresources, work- Kressbronn, Germany, all ing in partnershipis also and part ofcreating its ambitious goalquality Where of greenhouse life. gas emis- German locations of Global of being climate neutral by sions cannot be prevented or Produce have been climate 2030. To achieve this, the com- reduced, BayWa neutralises neutral since 2018. The pany plans to significantly re- these emissions by purchasing Dutch Group subsidiary duce energy consumption and high-quality carbon credits. TFC Holland B.V. achieved emissions, shift more toward 2019 also marked the first time climate neutrality in 2019 renewable energy sources and BayWa AG participated in the as well. Ongoing reduc- compensate for remaining climate scoring system operat- tions in greenhouse gas BayWa’s sustainability strategyemissions by purchasing high- ed by CDP, an international emissions at these loca- quality carbon credits over the non-profit organisation. BayWa tions have been achieved next few years. was ranked among the 30% in a variety of ways, includ- of companies from the trading, ing switching to LEDs, Climate-related successes of wholesale, distribution, letting installing high-speed doors BayWa and leasing sector that have to prevent the loss of cold In just the first year of its climate achieved what is known as the air and installing solar strategy, BayWa already made Awareness Level. BayWa em- panels to generate their

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l i BayWa was able to drive growth (Munich business climate pact), house gas emissions. f e with hardly any increase in emis- joining forces with other com­ sions. Scope 1 and 2 green- panies in Munich towards the house gas emissions were up goal of cutting greenhouse gas only slightly, by 0.8%. Energy emissions by 20,000 tonnes consumption decreased by until 2021. 21.8%, putting BayWa close to

28 Sustainability Sustainability 29 Climate Global challenges neutrality by 20305

BayWa identified the United Nations Sustainable Development Goals (SDGs) to which the company can contribute back in 2016. These goals remain in place for the company after a 100 % +10 GW comparison performed in cooperation with internal and external stakeholders in 2019. Percentage of elec- Generation capacities tricity needs covered of renewable energies with renewable by 20251 energies by 2020 Climate targets

Additional information is available in BayWa’s sustainability report at: www.baywa.com SDG BayWa contribution – 22 % – 22 % Greenhouse Energy consumption gases by 20251 by 2025 1, 2 • Energy consumption reduced by 21.8%1, 2 • Group-wide use of green energy increased to 73%3 • Worldwide renewable energy capacity expanded since 2017 to over 3 gigawatts (GW) • Compensation for 153,360 tonnes4 of greenhouse gas emissions in 2019 through carbon credits BayWa’s climate Climate-neutral • Range of around 500 products in the areas of livestock farming, business practices at soil fertility and seed for organic farming Global Produce • 77% share of waste recycled at BayWa AG strategy The Global Produce business unit has been leading by example in • Total of 156 action days for healthy nutrition held in 2019 terms of climate-neutral • 75% of grain volume traded by the Agri Trade & Service business unit With its Group-wide climate its energy goal. Of the electricity business practices since in 2019 certified (in accordance with the EU REDcert sustainability strategy, BayWa aims to help used, over 70% was derived 2016. Following the largest standard) keep global warming significant- from renewable sources. production location, in • Nearly 98% of oilseed traded by the Agri Trade & Service business unit ly below 2 degrees Celsius. This Kressbronn, Germany, all in 2019 certified (in accordance with the EU REDcert sustainability is also part of its ambitious goal Where greenhouse gas emis- German locations of Global standard) of being climate neutral by sions cannot be prevented or Produce have been climate • Nearly 1 million tonnes of soya volume traded by BAST in 2019 certified 2030. To achieve this, the com- reduced, BayWa neutralises neutral since 2018. The (in accordance with the RTRS sustainability standard or CRS) pany plans to significantly re- these emissions by purchasing Dutch Group subsidiary duce energy consumption and high-quality carbon credits. TFC Holland B.V. achieved emissions, shift more toward 2019 also marked the first time climate neutrality in 2019 • 21% of managers are female renewable energy sources and BayWa AG participated in the as well. Ongoing reduc- • 34 BayWa Foundation education projects carried out worldwide compensate for remaining climate scoring system operat- tions in greenhouse gas • 94% of employees at BayWa AG fall under the BayWa pay scale emissions by purchasing high- ed by CDP, an international emissions at these loca- quality carbon credits over the non-profit organisation. BayWa tions have been achieved next few years. was ranked among the 30% in a variety of ways, includ- • 10.6 hours of training per employee of companies from the trading, ing switching to LEDs, • EBIT up by about 9% year on year Climate-related successes of wholesale, distribution, letting installing high-speed doors BayWa and leasing sector that have to prevent the loss of cold In just the first year of its climate achieved what is known as the air and installing solar • 6,139 employees trained on compliance topics strategy, BayWa already made Awareness Level. BayWa em- panels to generate their progress compared with the phasises its climate goals within own power. Another Group base year, 2017. Thanks to ener- the company and beyond: for subsidiary, the New Zea- gy efficiency measures, a shift to the second time in a row, the land-based T&G Global, is

1 Base year: 2017 electric vehicles and optimisa- company participated in the also taking ongoing steps 2 Per euro of EBITDA tion of logistics operations, Klimapakt Münchner Wirtschaft to effectively reduce green- 3 Including shifts in consumption of grey energy through certificates of origin for green energy BayWa was able to drive growth (Munich business climate pact), house gas emissions. 4 Scope 1, 2 and 3 (emissions from in-house activities along with upstream and downstream activities) with hardly any increase in emis- joining forces with other com­ 5 BayWa defines climate neutrality as the avoidance, reduction and compensation of remaining Scope 1 and 2 greenhouse gas emissions (CO₂ and other relevant gases with an impact on climate) through investments in high-quality carbon credits. sions. Scope 1 and 2 green- panies in Munich towards the house gas emissions were up goal of cutting greenhouse gas only slightly, by 0.8%. Energy emissions by 20,000 tonnes consumption decreased by until 2021. 21.8%, putting BayWa close to

28 Sustainability Sustainability 29 Long-term price performance of the BayWa share (in €)1

2015 2016 2017 2018 2019

High 38.75 31.46 34.00 33.05 29.40 Low 27.05 25.62 30.25 19.90 20.95 Closing price 28.40 30.79 32.07 20.60 28.25 The Financial Year 2019 Market capitalisation (in € million) 987.7 1,071.9 1,122.1 728.9 994.3

1 XETRA prices: registered share with restricted transferability (sec. ident. no. 519406); market capitalisation: both classes of shares (sec. ident. no. 519406 and sec. ident. no. 519400) Overall, the financial year 2019 saw positive At the Capital Market development. The Group’s operating earnings before interest and tax (EBIT) increased signifi- cantly, with revenues and EBIT in the Renewable The BayWa share looks back on an excellent year 2019. Overall, the share price roseActively by approximately communicating 37%, thereby outperforming Energies business unit rising to new highs. The the SDAX and many comparable global indices. diversified structure – with its Energy, Agriculture with the capital market and Building Materials Segments – proved itself once again, as did the strategic focus on inter­ national markets and future-oriented business Positive price performanceAs a listed of the company, BayWa share BayWa in 2019 internet, as all financial reports continuously provides the vari- and company presentations are First green bond areas and models. ous stakeholders in the capital available online in German and BayWa issued its first in % market with information about English at www.baywa.com. green bond in June 2019. 150 the Group’s performance as BayWa share A total volume of €500 well as on its long-term outlook.SDAX Positive performance of the million was placed with 140 The Investor Relations depart- BayWa share domestic and international 130 ment, which is directly overseen Overall, the German stock institutional investors. by the Chief Financial Officer, is market experienced positive This constitutes the first 120 responsible for communicating development in 2019. The DAX benchmark-sized green 110 openly and reliably with ana- benchmark index was largely bond transaction (more lysts, institutional investors, able to make up for the previous than €500 million) by a 100 private investors and the finan- year’s losses and closed the non-rated company in 90 cial press. The objective is to year with a gain of 25.5% at Europe. The issue proceeds Jan Mar increaseMay understandingJul of Sep 13,249Nov points, close to its annu- will serve to finance new BayWa’s and al high. The BayWa registered and existing wind farms Change in figures Key figures for 2019 thereby strengthen the trust share with restricted transfera- and solar parks around The global goal of the capital market in the bility recorded a price of €28.25 the world. The green bond of energy trans- company. Nurturing contacts at the close of trading in 2019, was considerably over- formation and the Sustainable dividend developmentwith existing and potential an increase of 37.1% compared subscribed due to strong resulting growth (Dividend per share in €)investors at home and abroad with the 2018 closing price of investor demand, allowing in activities made is therefore an integral part €20.60. Including0.951 the 90-cent BayWa to generate a € 17.1 bn 2.6% 1.0 0.90 0.90 themselves felt at of BayWa’s investor relations0.85 0.85 dividend payment for 2018 dis- coupon of 3.125%. The revenues in 2019 0.80 BayWa in the form 0.8 activities.0.75 BayWa held a large tributed in the summer of 2019 oversubscription of the 0.65 of change in the 0.60number of individual meetings – corresponding to a dividend order book underscores way EBIT is weight- 0.6 0.50 with fund managers and finan- return of just under 4.4% in the trust of investors in ed. At €101 million, 0.40 cial analysts in the reporting relation to the closing price in BayWa and in its compe- 0.4 the Renewable year 2019. These meetings pri- 2018 – the total returns for tence in the area of sus- Energies business marily took place at roadshows BayWa shareholders in 2019 tainability. The green bond € 188.4 m 9.3% 2009 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 2019 unit now accounts and capital market conferences. amount to approximately 41.5%. has a term of five years EBIT in 2019 for the largest 1 Subject to approval by the AnnualIn addition, General Meeting BayWa regularly The market capitalisation of and is traded on the regu- share of total EBIT. participates in forums and con- BayWa AG came to €994.3 mil- lated market of the Luxem- ferences for private and small lion at the close of trading in bourg . Dividend increase proposed:investors, which BayWa are organised,is continuing 2019. to uphold the steady, earnings-orientedfor example, dividend by the policyDeutsche that has been pursued 18,831 4.6% in recent years. TheSchutzvereinigung Board of Management für Wert- and Supervisory papierbesitz (DSW) and the employees (annual average) in 2019 Board will therefore put forward a proposal to the Annual General Schutzgemeinschaft der Kapital­ Meeting to raise the dividend by 5 cents to 95 cents per share. anleger (SdK). Additional trans- parency is created through the

30 The Financial Year 2019 The Financial Year 2019 31 Long-term price performance of the BayWa share (in €)1

2015 2016 2017 2018 2019

High 38.75 31.46 34.00 33.05 29.40 Positioning of the BayWa share Low 27.05 25.62 30.25 19.90 20.95 Closing price 28.40 30.79 32.07 20.60 28.25 The Financial Year 2019 Market capitalisation (in € million) 987.7 1,071.9 1,122.1 728.9 994.3

BayWa’s registered shares with restricted transferability are traded on the regulated 1 XETRA prices: registered share with restricted transferability (sec. ident. no. 519406); markets on the Frankfurt and Munich stock exchanges, in the XETRA trading system, market capitalisation: both classes of shares (sec. ident. no. 519406 and sec. ident. no. 519400) Overall,as well the as OTC financial on the stock exchangesyear 2019 of Berlin, saw Bremen, positive Dusseldorf, Hamburg and Stuttgart. BayWa meets the requirements of the Prime Standard for company development.reporting and transparency, The Group’s which are operatinghigh even in international earnings comparison. before interest and tax (EBIT) increased signifi- cantly, with revenues and EBIT in the Renewable Energies business unit rising to new highs. The Actively communicating diversified structure – with its Energy, Agriculture with the capital market and Building Materials Segments – proved itself once again, as didBayWa the AG strategic focus on inter­ national marketsshareholder and structure future-oriented business As a listed company, BayWa internet, as all financial reports as at 31 December 2019 continuously provides the vari- and company presentations are First green bond areas and models. ous stakeholders in the capital available online in German and BayWa issued its first market with information about English at www.baywa.com. green bond in June 2019. the Group’s performance as A total volume of €500 well as on its long-term outlook. Positive performance of the million was placed with The Investor Relations depart- BayWa share domestic and international ment, which is directly overseen Overall, the German stock institutional investors. by the Chief Financial Officer, is market experienced positive This constitutes the first responsible for communicating development in 2019. The DAX benchmark-sized green Bayerische Raiffeisen-Beteiligungs-AG openly and reliably with ana- benchmark index was largely bond transaction (more 34.6% lysts, institutional investors, able to make up for the previous than €500 million) by a private investors and the finan- year’s losses and closed the non-rated company in Raiffeisen Agrar Invest AG cial press. The objective is to year with a gain of 25.5% at Europe. The issue proceeds 25.1% increase understanding of 13,249 points, close to its annu- will serve to finance new BayWa’s business model and al high. The BayWa registered and existing wind farms Freefloat Change in figures Key figures for 2019 thereby strengthen the trust share with restricted transfera- and solar parks around 40.3% The global goal of the capital market in the bility recorded a price of €28.25 the world. The green bond of energy trans- company. Nurturing contacts at the close of trading in 2019, was considerably over- formation and the with existing and potential an increase of 37.1% compared subscribed due to strong resulting growth investors at home and abroad with the 2018 closing price of investor demand, allowing in activities made € 17.1 bn 2.6% is therefore an integral part €20.60. Including the 90-cent BayWa to generate a themselves felt at of BayWa’s investor relations dividend payment for 2018 dis- coupon of 3.125%. The revenues in 2019 BayWa in the form activities. BayWa held a large tributed in the summer of 2019 oversubscription of the of change in the Allocation of share capital number of individual meetings – corresponding to a dividend order book underscores way EBIT is weight- with fund managers and finan- return of just under 4.4% in the trust of investors in ed. At €101 million, cial analysts in the reporting relation to the closing price in BayWa and in its compe- the Renewable BayWa’s total share capital amounts to €90,314,398.72. Liable capital increased year 2019. These meetings pri- 2018 – the total returns for tence in the area of sus- Energies business € 188.4 by €360,739.84 year on yearm owing to the subscription of employee9.3% shares valued marily took place at roadshows BayWa shareholders in 2019 tainability. The green bond unit now accounts at an arithmetical portion of share capital of €2.56 per share. Share capital com- and capital market conferences. amount to approximately 41.5%. has a term of five years EBIT in 2019 for the largest prises 35,279,062 registered shares, divided into two classes of shares: registered In addition, BayWa regularly The market capitalisation of and is traded on the regu- share of total EBIT. shares with restricted transferability (sec. ident. no. 519406), which are more liquid participates in forums and con- BayWa AG came to €994.3 mil- lated market of the Luxem- due to their high number of 34,035,811, as well as 1,243,251 registered shares that ferences for private and small lion at the close of trading in bourg Stock Exchange. are not subject to restricted transferability (sec. ident. no. 519400). The latter were investors, which are organised, 2019. largely created by issuing shares as part of mergers. The trading volume of this for example, by the Deutsche 18,831“smaller” class of shares is very limited owing to their low number.4.6% Both classes of Schutzvereinigung für Wert- shares endow equal rights upon the holder. papierbesitz (DSW) and the employees (annual average) in 2019 Schutzgemeinschaft der Kapital­ anleger (SdK). Additional trans- parency is created through the

30 The Financial Year 2019 The Financial Year 2019 31 Overview of the Financial Year 2019

Development was positive overall for the BayWa Group The Agriculture Segment’s revenues fell slightly BayWa Group in 2019. The corporate goals for the reporting year were by 1.4% to €10,857.5 million, and EBIT fell slightly by achieved. However, development was varied among €3.5 million to €96.6 million. Development in the busi- the segments. Overall, the Energy Segment developed ness units was therefore mixed. The BAST business considerably better than expected. The Renewable unit’s grain and oilseed meal handling volume fell by Energies business unit, which achieved new highs in 1.6 million tonnes to just under 25.0 million tonnes in both revenues and operating result, was the main factor the financial year 2019. This was mainly due to the + 2.6% + 9.3% behind this development. The Conventional Energy suspension of business with Iran and the trade conflict business unit also exceeded the goals set for the finan- between the US and China. The revenues of the BAST cial year 2019. The Building Materials Segment devel- business unit declined by 7.8% to €4,875.8 million due oped better than planned in the reporting year. By con- to both sales volume and price factors. Earnings were trast, the economic situation in the Agriculture Segment particularly affected by defaults on receivables in con- Revenues EBIT is unsatisfactory. In view of the great importance of nection with the suspension of bread grain business in € million in € million these business activities for the BayWa Group, action is with Iran caused by the sanctions and the lower trading 16,625.7 17,059.0 172.4 188.4 required here in order to noticeably increase profitability. volume. The business unit’s total earnings before inter- 2018 2019 2018 2019 In 2019, the BayWa Group once again profited from its est and tax (EBIT) declined slightly in 2019 by €12.0 heavily diversified business activities and its strategic million to €19.1 million. The BayWa Group’s fruit sales orientation towards international markets and towards increased by just over 8% to 380,550 tonnes in 2019. new areas of business and business models. Development of domestic trade was therefore positive. By contrast, the harvest volume of apples harvested In Germany, business development in the building The increase in earnings should be seen against the The positive business development in the Energy by the New Zealand subsidiary T&G Global Limited materials trade was boosted by the solid development background that the charge of €68.6 million from the Segment was driven by both business units in 2019. was just under 23% lower than in the previous year of the construction industry throughout 2019 and the termination of the antitrust proceedings regarding crop At €4,474.3 million, the Energy Segment’s total reve- due to bad weather. The Global Produce business mild weather conditions both in the spring and in late protection products was processed in the reporting nues were up year on year by €505.8 million. Earnings unit recorded moderate growth of 4.5% to autumn of 2019. In 2019, the Building Materials Seg- year. This negative effect on earnings was almost offset before interest and tax (EBIT) increased by 32.7% to €843.9 million in 2019. Earnings before interest and ment increased revenues by 5.3% to €1,702.8 million by income from the sale of investments. At the same €127.4 million, thereby setting a new record. The Renew- tax (EBIT) increased in 2019 by €9.7 million year on year due to pricing and volume factors. Earnings before time, the result includes total one-off charges of almost able Energies business unit significantly exceeded the to €36.9 million. However, this figure includes special interest and tax (EBIT) for the segment increased by €15 million for various projects such as the preparation project developments and sales for the year as a whole. income from the sale of a property by T&G Global, 3.2% to €32.1 million. In addition to the positive sales of a capital increase at BayWa r.e., restructuring meas- Plant sales, with a total output of 911.6 megawatts which more than compensated for the poorer operating development, the successful expansion of the high- ures, portfolio adjustments and the final legal costs (MW), more than doubled in the reporting year (2018: performance. The Agri Trade & Service business margin range of private brands and the linking together in connection with the settlement of the antitrust pro- 453.0 MW), setting a new record. Overall, revenues unit’s grain, oilseed and oilseed meal handling volume of online and stationary sales channels through the ceedings. Net income for the period increased by 11.3% rose by 29.1% to €1,975.3 million. Following €72.5 mil- increased by 12.5% to just under 7.3 million tonnes. Click & Collect function as part of efforts to position the to €61.1 million due to improved operating earnings. lion in the previous year, earnings before interest and Revenues increased mainly due to volume factors by company as an integrated multi-specialist contributed The Board of Management and Supervisory Board will tax (EBIT) reached a new high of €101.0 million in the 4.7% to €3,454.4 million. The business unit’s earnings to the improvement in earnings. recommend to the Annual General Meeting a 5-cent reporting year. The improvement in both revenues and before interest and tax (EBIT) improved to €7.8 million. increase in the dividend of 95 cents per share. the operating result is primarily attributable to the sharp In a persistently difficult market environment, this In the reporting year, the Innovation & Digitalisation rise in project sales and growth in solar trading, and increase is mainly due to restructuring measures in Segment generated revenues on a par with the previous exceeded the positive expectations. The development previous years. BayWa’s agricultural equipment busi- year at €10.6 million (2018: €10.7 million). As predicted, of the Conventional Energy business unit in 2019 was ness was unable to reach the record-breaking level the segment recorded negative earnings before interest shaped by a strong rise in demand for heat energy of the previous year in 2019. Sales of new machinery and tax (EBIT) of €14.6 million (2018: minus €12.3 mil- carriers. This business unit’s revenues rose by 2.5% to declined by 4.1% to 4,617 tractors in 2019. On the other lion). Among other things, this was due to a rise in mar- €2,499.0 million in the reporting year mainly due to hand, sales of machinery and accessories in the fluid keting expenses in the reporting year in connection the rise in sales volumes in the heating business. EBIT fertilizer segment and the service business developed with Agritechnica and with the expansion of additional improved by 12.3% to €26.4 million primarily due to positively. The Agricultural Equipment business unit’s development and distribution capacities. excellent margins in the heating oil and fuel business, revenues rose by 3.8% to €1,683.4 million. By contrast, thereby reaching a new record high. earnings before interest and tax (EBIT) fell to €32.8 The BayWa Group generated total revenues of €17,059.0 million in the reporting year (minus 10.4%) following million in 2019, a 2.6% increase compared to the pre­ the extremely strong increase in the previous year vious year. EBIT improved by 9.3% to €188.4 million. (2018: plus 83.9%).

32 The Financial Year 2019 The Financial Year 2019 33 Consolidated Balance Sheet Consolidated Income Statement 2019* as at 31 December 2019*

Assets Continued operations

in € million 31/12/2019 31/12/2018 in € million 2019 2018

Non-current assets Revenues 17,059.0 16,625.7 Fixed assets 2,943.0 2,195.3 Inventory changes 223.2 217.0 Receivables and other assets 35.9 29.0 Other own work capitalised 13.7 10.8 Deferred tax assets 297.7 252.6 Other operating income 225.6 211.3 3,276.6 2,476.9 Cost of materials −15,513.0 −15,175.7 Gross profit 2,008.5 1,889.1 Current assets Personnel expenses −1,081.9 −990.6 Securities 1.3 1.9 Depreciation/amortisation −214.6 −142.9 Inventories including biological assets 3,300.0 2,926.0 Other operating expenses −629.4 −599.0 Receivables and other assets 2,054.9 1,981.9 Result of operating activities 82.6 156.6 Cash and cash equivalents 229.7 120.6 Income from participating interests recognised at equity 11.2 9.0 5,585.9 5,030.4 Other income from shareholdings 94.6 6.8 Interest income 12.8 12.0 Non-current assets held for sale/disposal groups 4.7 4.2 Interest expenses −122.0 −91.8 Total assets 8,867.2 7,511.5 Financial result −3.4 −64.0 Earnings before tax (EBT) 79.2 92.6 Income tax −18.1 −37.7 Consolidated net result for the year 61.1 54.9 Shareholders’ equity and liabilities thereof: profit share of minority interest 24.4 22.6

in € million 31/12/2019 31/12/2018 thereof: profit share of shareholders of the parent company 36.7 32.3 EBIT 188.4 172.4 Equity 1,358.6 1,389.1 EBITDA 403.0 315.3

Non-current liabilities Provisions 795.0 710.0 * Detailed information about BayWa AG’s business performance in 2019 is available online in the Consolidated Financial Statements 2019: Financial liabilities and liabilities from finance leasing 2,007.6 1,047.6 www.baywa.com Other liabilities 99.8 97.4 Deferred tax liabilities 229.1 219.7 3,131.5 2,074.7

Current liabilities Provisions 289.4 219.9 Financial liabilities and liabilities from finance leasing 2,381.8 2,243.4 Other liabilities 1,705.9 1,584.4 4,377.1 4,047.7

Liabilities from non-current assets held for sale/disposal groups − − Total shareholders’ equity and liabilities 8,867.2 7,511.5

* Detailed information about BayWa AG’s business performance in 2019 is available online in the Consolidated Financial Statements 2019: www.baywa.com

34 The Financial Year 2019 The Financial Year 2019 35 More BayWa online:

BayWa Company Brochure Think boldly – act responsible www.baywa.com/en/press

BayWa Consolidated Financial Statements 2019 www.baywa.com/en/investor_relations

BayWa Sustainability Report 2019 www.baywa.com/en/sustainability

Connectedness to the forest habitat

The BayWa Foun- With 800 trees planted, 600 “Waldtage­ ing health.” to funding training courses for Imprint dation receives UN bücher” (forest diaries) in pupil’s bags and young women in Zambia and granting the Decade Award 600 schoolchildren reached, the new edu- “Deutschlandstipendium” (Germany Scholar­ Project management and coordination/Text Printing The United Nations cational project “Die Waldschule” (forest ship) to students, education is at the heart BayWa AG, Munich, Germany BluePrintAG, Munich, Germany have declared the school) can look back on a successful year of every project. PR/Corporate Communications/Public Affairs period from 2011 to in 2019. In autumn 2018, the BayWa Founda- Investor Relations For more information please contact 2020 as the United tion launched a project that lets schoolchil- Through its foundation, BayWa AG is taking PvF Investor Relations Peters von Flemming & BayWa AG Nations Decade on Bio­ dren learn more about forests while playing responsibility for the society’s needs in the Partner, Frankfurt am Main, Germany PR/Corporate Communications/Public Affairs diversity to counteract an active role in environmental protection. areas of education, nutrition and energy. The Arabellastr. 4 the global decline in Each child plants their own tree, allowing Group also covers the administrative costs Translation 81925 Munich, Germany biodiversity. Anchoring school classes to experience the forest with and doubles all donations. Thus, 200% of the lennon.de Language Services, Münster, Germany Telephone +49 89 9222-3691 awareness of the tre- all their senses, get to know various insects donations the BayWa Foundation receives Telefax +49 89 9212-3691 mendous importance (such as the bark beetle) and understand flow into its educational activities. BayWa Concept and design E-mail [email protected] of nature in society is the relationship between people and nature. employees also regularly demonstrate their trurnit Publishers GmbH, Annett Both one of the key goals. The BayWa Foundation has been honoured dedication to the foundation. At Social Day www.trurnit.de BayWa website: Through its special for its commitment. The United Nations events in 2019, for example, they planted www.baywa.com competition “Social have added the project to their Decade on 300 new trees during a special campaign for Copyright credits Nature – Nature for all”, Biodiversity, describing “Die Waldschule” as the “Die Waldschule” project in Munich. Cover/back cover: AnderlSp/iStock, Jenson/ © BayWa AG, Munich, Germany the UN Decade on Bio- an exemplary project with a focus on nature iStock; inner part: AGCO/Fendt (p. 20), diversity in Germany and social issues that demonstrates ways Learn more about the BayWa Foundation’s Andris Tkacenko/Shutterstock.com (p. 19), Language versions is helping to focus to practically implement specific measures. activities at: www.baywastiftung.de baona/iStock (p. 31), BayWa AG (pp. 17, 21, 24), The publication is available in German and English. public attention on the BayWa r.e. (pp. 6, 7, 11, 12, 13, 14), Cefetra (p. 18), Only the German version is legally binding. opportunities that na- “Die Waldschule” was one of 40 projects David Trood/Getty Images (p. 28), Eckhart Matthäus Both versions can be viewed/downloaded from ture offers to enhance spearheaded by the BayWa Foundation für asset gmbh (p. 9), ESA (p. 27), ithinksky/ the company’s website at: www.baywa.com Support us with your donation. social cohesion. in 2019. Since being founded in 1998, the iStock (p. 16), Jan Röder (pp. 8, 15), Jozef Jankola/ foundation has been concerned with social Donations account: BayWa Stiftung 500px/Getty Images (p. 22), Klaus Haag (pp. 1, 3), issues, promoting education on healthy DZ Bank AG Niederlassung München Klaus Haag/BayWa Stiftung (p. 36), LG Electronics nutrition and renewable energies. From IBAN: DE16 7016 0000 0000 5554 44 (p. 10), LOVE_LIFE/iStock (pp. 4/5), educating children on nutrition through the BIC: GENODEFF701 Tjiko GmbH (p. 25), T&G Global Limited (p. 19), programme “Planting vegetables. Harvest- USGS/ESA (p. 26)

36 The BayWa Foundation United for success.