BayWa : Performance as expected in third quarter – BayWa confirms full-year guidance for 2023

Press release

Number: 05023-PIU14 | As at 9 November 2023

Performance as expected in third quarter - BayWa confirms full-year guidance for 2023

BayWa Group reaffirms its EBIT target of between €320 million and €370 million.

Despite some difficult general market conditions, the BayWa Group has achieved strong operating earnings for the first nine months of the financial year. Earnings before interest and tax (EBIT) amounted to €214.6 million at the end of the third quarter (previous year: €459.8 million). Revenues were down compared to the exceptional previous year, as expected, at €18.2 billion for the reporting period (previous year: €20.1 billion). "Significant price drops for many raw materials coupled with the high interest rates are creating difficult market conditions at present. However, as a diversified portfolio company and with targeted risk management in areas such as German agricultural business, we were able to take precautions and achieve strong operating earnings," said Marcus Pöllinger, Chief Executive Officer of BayWa AG. "And I am confident as regards the fourth quarter due to the project sales still outstanding in the Renewable Energies Segment. I can therefore reconfirm our EBIT target of between €320 million and €370 million for 2023."

Above average results for Agricultural Equipment and Cefetra Group Segments

Performance in the Renewable Energies Segment declined year on year in the third quarter, as expected, due to the differing cycles in sales of renewable energy projects within a year. Reasonable comparisons of project business can therefore only be made on a year-by-year basis. BayWa anticipates that the sale of solar parks and wind farms with total output of 175 MW and almost

800 MW in project rights in the final quarter will contribute to the expected rise in earnings. The uncertainties regarding fuel and heat carrier supply triggered by the war in Ukraine have largely subsided, which is reflected in the lower prices for many raw materials. Earnings in the Energy Segment therefore stabilised around the pre-Ukraine war level.

The Cefetra Group Segment achieved above-average earnings and similarly strong performance year on year in the specialities business, primarily in starch and proteins, and in nuts and legumes from Africa. As expected, earnings in domestic agricultural trade were adversely affected by the stockpiling in the previous year, farmers' reluctance to buy and falling prices. By contrast, BayWa continued to profit from a high order backlog in trade in agricultural machinery, and actually exceeded the record result of the previous year. The effects of Cyclone Gabrielle that hit New Zealand in February of this year continue to be felt in the Global Produce Segment in the form of harvest losses and clean-up costs. Consumer demand for premium fruit varieties and exotic fruits also remained subdued due to

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high inflation. The slump in the construction sector continues to impact the Building Materials Segment. The order situation is weak in residential construction in particular due to the high current interest rates and high material costs for energy-intensive building materials. BayWa has introduced a cost-cutting programme to stabilise business in the Building Materials Segment. Demand for retail and warehouse buildings is providing positive momentum in the commercial construction segment, as are infrastructure projects in road and bridge building in the public construction sector.

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Press contact: BayWa AG Arabellastraße 4 81925 Munich Germany

Anja Richter

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Über die BayWa AG

Die BayWa AG ist ein weltweit tätiger Konzern mit den Geschäftsfeldern Energie, Agrar und Bau. Als Global Player mit einem Umsatz von 27,1 Mrd. Euro im Jahr 2022 entwickelt sie innovative und nachhaltige Lösungen für die Grundbedürfnisse Ernährung, Energie, Mobilität und Wohnen. Rund 25.000 Mitarbeiterinnen und Mitarbeiter sind dafür in mehr als 50 Ländern im Einsatz. Sitz der 1923 gegründeten Muttergesellschaft, die im Jahr 2023 ihr 100-jähriges Bestehen feiert, ist München. Ihren Ursprung hat die BayWa AG im genossenschaftlichen Landhandel mit der Aufgabe, den ländlichen Raum mit allem zu versorgen, was die Landwirtschaft braucht. Weitere Informationen finden Sie unter www.baywa.com/presse.