Quarterly Financial Statements

as per 30 September 2020 Conference Call

Munich, 12 November 2020

Prof. Klaus Josef Lutz, CEO

Andreas Helber, CFO

Agenda

  1. Development of the Group1-9/2020
  2. Development of the Segments1-9/2020
  3. Group Financials1-9/2020
  4. Outlook for FY 2020

Appendix

12 November 2020

Page 2

Development of the Group 1-9/2020

12 November 2020

Page 3

Development of the Group 1-9/2020

Summary

In EUR m

+32.9%

-2.2%

12,473.0

12,197.8

102.7

Revenues

77.3

EBIT

1-9 2019

1-9 2020

1-9 2019

1-9 2020

  • Slight decline in revenues due to disposal of TESSOL
  • Above-average,strong third quarter: significant earnings improvement supported by all three operating segments
  • Burdens of around EUR 18 million from Corona (direct and indirect) absorbed in the reporting period
  • Extraordinary income in the previous year (sale ofKartoffel-Centrum Bayern GmbH for EUR 3.9 million and AHG-Autohandelsgesellschaft mbh for EUR 3.1 million) compensated
  • BayWa r.e.: large majority of project sales to take place in Q4

12 November 2020

Page 4

Development of the Group Q3/2020

Multi-year comparison of EBIT

48.9

30.1

25.1

Ø 23.6

17.5

-3.8

Q3 2016

Q3 2017

Q3 2018

Q3 2019

Q3 2020

12 November 2020

Page 5

Development of the Group 1-9/2020

Multi-year comparison of EBIT

102.7

90.3

85.4

77.3

28.3

Ø 76.8

1-9 2016

1-9 2017

1-9 2018

1-9 2019

1-9 2020

12 November 2020

Page 6

Energy Segment

Energy Segment 1-9/2020 Market developments

Renewable Energies

Forecast for global capacity installation in 20201

Onshore wind energy

Solar

66

127

GW

GW

(+19.3% y/y)

(+5.0% y/y)

Gross capacity installation in Germany from Jan. to Aug. 20202

In MW

Wind-Onshore

Solar

In GW

+30.2%

4.08

Conventional Energy

Brent crude oil price3and heating oil price trend in Germany4

In USD per barrel

In cent per litre

80

75

66.9

70

70

66.2

60

65

65.4

60

50

40

55

52.7

30

50

20

45

10

40

41.0

Jan. 19 Jun. 19 Nov. 19 Apr. 20 Sep. 20

Jan. 19

Jun. 19

Nov. 19

Apr. 20

Sep.

Sale of heating oil in Germany5

373

357

369

379

446

436

437

409

3.13

3.20

189

169

2.70

91

79

72

94

71

109

0.88

0.43

Jan

Feb

Mar

Apr

May

Jun

Jul Aug

1-8 2019

1-8 2020

In millions

+9.4%

of tons

10.2

11.2

1-8 2019

1-8 2020

  • Crude oil price 30% lower y/y:
    • high crude oil stocks (7% above5-year Ø)
    • decline in demand anticipated due to rising Corona infection rates in Europe
  • Increased customer demand for heating oil - price trend used increasingly by consumers to stock up

Sources: 1) BNEF; 2) Bundesnetzagentur; 3) finanzen.net 4) Statista; 5) BAFA, as of August 2020

12 November 2020

Page 8

Energy Segment 1-9/2020: Renewable Energies Revenues and EBIT as against the previous year

Renewable Energies

In EUR m

+23.0%

1,081.2

1,329.8

Revenues

1-9 2019

1-9 2020

>+100%

22.0

EBIT

3.9

1-9 2019

1-9 2020

  • Revenues: ∆ 19/20 EUR +248.6 million
  • EBIT: ∆ 19/20 EUR +18.1 million
  • Significant increase in revenues and earnings through successful realisation of several international project sales
    • 2 wind farms (4.7 MW - Schönberg 2, Germany; 9.0 MW - Le Champ Grand, France)
    • 1 solar park (38.9 MW - Gebeng, Malaysia)
  • Extensive trading in PV components:
    • PV modules sold +29.8% y/y; converters sold +33.6% y/y

12 November 2020

Page 9

Energy Segment 1-9/2020: Conventional Energy Revenues and EBIT as against the previous year

Conventional Energy

In EUR m

-30.6%

1,908.1

1,323.6

Revenues

1-9 2019

1-9 2020

+20.9%

21.5

26.0

EBIT

1-9 2019

1-9 2020

  • Revenues: ∆ 19/20 EUR-584.5 millions
  • EBIT: ∆ 19/20 EUR +4.5 millions
  • Price-induceddecline in revenues and disposal of TESSOL (around EUR 290 million)
  • Uptrend in heating oil sales (+27.8% y/y), wood pellets (+7.8% y/y) and lubricants (+16.9% y/y); decline in fuels(-11.7% y/y)
  • Price drops of heat energy carriers used by consumers to stock up
  • Upfront buying effects due to VAT reduction and imminent CO2tax (2021)
  • Significant increase in earnings fromabove-average sale of heat energy carriers

12 November 2020

Page 10

Financials Energy Segment 1-9/2020

Income Statement

in EUR m

1-9 2016

1-9 2017

1-9 2018

1-9 2019

1-9 2020

∆19/20 (%)

Revenues

2,070.6

2,500.5

2,583.7

2,989.3

2,653.4

-11.2%

EBITDA

81.8

87.3

9.0

51.3

82.2

60.2%

% of Revenues

4.0%

3.5%

0.3%

1.7%

3.1%

EBIT

57.7

63.0

-10.1

25.4

48.0

89.0%

% of Revenues

2.8%

2.5%

-0.4%

0.8%

1.8%

EBT

47.4

48.5

-24.6

-10.6

9.2

> 100%

% of Revenues

2.3%

1.9%

-1.0%

-0.4%

0.3%

12 November 2020

Page 11

Agriculture Segment

Agriculture Segment 1-9/2020

Market developments - agricultural products

Agri commodities price trend1

In EUR/tons

Corn CBT

Wheat MTF

Soy meal CBT

Rape seed MTF

220

430

200

410

390

180

370

160

350

330

140

310

120

290

270

100

250

Jan-19

Jun-19

Nov-19

Apr-20

Sep-20

Jan-19

Jun-19

Nov-19

Apr-20

Sep-20

  • Price rally on the agricultural commodities markets:
    • Lower harvest anticipated due to drought in many global growing areas, (e.g. Black Sea region) results in less willingness to part from the old harvest
    • At the same time, strong demand for feedstuff grain from China due to recovery in pig livestock

Global grain balance (excl. rice; October 2020)2

In millions of tons

Ending Stocks

Production

Consumption

2750

135

115

2250

1996

2171

2124

2128

2175

2232

95

2041

75

59

53

1750

55

29

20

35

1250

8

1

15

750

-5

-24

-25

250

-45

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21*

  • Around 2,232 million tons (+2.6% y/y) anticipated for the global crop year 2020/21
  • German grain harvest 2020 anticipated at around 42.9 million tons(-3.1% y/y) slightly under previous year's level
  • Global oil seed production of 606 million tons in 2020/21 likely to exceed the previous year by 5.0%; oilseed meal expected to be 2.6% higher y/y

Sources: 1) MATIF und CBOT exchanges; 2) USDA; * forecast 2020/21, as of October 2020

12 November 2020

Page 13

Agriculture Segment 1-9/2020: BAST

Revenues and EBIT as against the previous year

BAST

In EUR m

-10.0%

3,645.0

3,281.0

Revenues

1-9 2019

1-9 2020

+56.6%

16.6

10.6

EBIT

1-9 2019

1-9 2020

  • Revenues: ∆ 19/20 EUR-364.0 million
  • EBIT: ∆ 19/20 EUR +6.0 million
  • Volume-induceddecline in revenues partly due to restricted trading activities because of Corona (-5.4% y/y)
  • Significant earnings increase; business unit benefits from price rally and can compensate for lower sales volumes through higher margins
  • Catch-upeffects in the speciality trade in Q3 as individual trading transactions in Q2 were delayed due to Corona

12 November 2020

Page 14

Agriculture Segment 1-9/2020

Market development Global Produce, Inputs, Equipment

Global Produce

  • NZ 2020 apple production above previous year (+6% y/y) - better fruit quality due to weather conditions
  • Weak European apple harvest and emptied warehouses at the start of the season result in rising prices
  • Apple prices in Germany 48% above the5-year average in September

In euro cent / kilo

Input Resources

  • Weak demand due to regulatory framework environment and unfavourable weather conditions
  • Low energy costs lead to plunge in the price of fertilisers
  • Fertiliser prices in the reporting period below previous year's period on average:
    CAN (-13% y/y); urea (-9% y/y)

Agricultural Equipment

  • Economic barometer slightly higher y/y
  • Farmers' planned investment volume of EUR 5.0 billion slightly lower y/y
  • Investment in yard and stable equipment in decline
  • New registrations of tractors in Germany up 7.7% y/y from January to September 2020

95

2019/20

2020/2021

5-year average

83

85

76

78

71

75

67

69

62

61

61

65

60

59

59

56

56

52

52

54

49

48

49

48

49

49

50

51

55

49

51

45

35

42

Aug. 19

Okt. 19

Dez. 19

Feb. 20

Apr. 20

Jun. 20

Aug. 20

Source: EU apple dashboard

= Calcium Ammonium Nitrate (CAN), Baltic Sea Ports

= Urea, Baltic Sea Ports

Source: Agrarzeitung

+7.7%

22,304

24,016

1-9 2019

1-9 2020

Source: VDMA

12 November 2020

Page 15

Agriculture Segment 1-9/2020: Global Produce Revenues and EBIT as against the previous year

Global Produce

In EUR m

+16.0%

0.0%

613.4

711.6

30.2

30.2

Revenues

EBIT

1-9 2019

1-9 2020

1-9 2019

1-9 2020

  • Revenues: ∆ 19/20 EUR +98.2 million
  • EBIT: ∆ 19/20 EUR +0.0 million
  • Volume- andprice-induced increase in revenues
  • Germany: good start to domestic sale of apples atabove-average prices
  • T&G Global:above-average harvest and strong export business mark the start of the country's apple season
  • Proportionate earnings contribution through Freshmax fruit trader (consolidated as from May; around EUR 2.5 million)
  • Special effect (disposal of real estate) in the previous year fully compensated by operating result

12 November 2020

Page 16

Agriculture Segment 1-9/2020: Agri Trade & Service Revenues and EBIT as against the previous year

Agri Trade & Service

In EUR m

+2.0%

2,709.7

2,764.9

Revenues

1-9 2019

1-9 2020

-36.2%

10.5

EBIT

6.7

1-9 2019

1-9 2020

  • Revenues: ∆ 19/20 EUR +55.2 million
  • EBIT: ∆ 19/20 EUR-3.8 million
  • Volume-inducedincrease in revenues
  • Slight increase in collection volumes of grain; the respective trading contracts will be taken up in the months ahead and recognised in earnings
  • Earnings decline from lower trading margins and less demand for operating resources
    • Fertiliser prices under sustained pressure from low crude oil prices
    • Crop protection: weak demand, above all for herbicides due to the dry weather
  • Decline in the consumption of beer leads to slump in demand for hops

12 November 2020

Page 17

Agriculture Segment 1-9/2020: Agricultural Equipment Revenues and EBIT as against the previous year

Agricultural Equipment

In EUR m

+11.1%

1,222.9

1,358.6

Revenues

1-9 2019

1-9 2020

+65.5%

24.0

14.5

EBIT

1-9 2019

1-9 2020

  • Revenues: ∆ 19/20 EUR +135.7 million
  • EBIT: ∆ 19/20 EUR +9.5 million
  • Significant increase in revenues and earnings
  • Business development benefits from increased demand for agricultural machinery; additional incentive to buy due to VAT reduction
    • Sales of new machinery +18.4% y/y and used machinery-13.3% y/y
  • Good capacity utilisation in the service business

12 November 2020

Page 18

Financials Agriculture Segment 1-9/2020

Income Statement

in EUR m

1-9 2016

1-9 2017

1-9 2018

1-9 2019

1-9 2020

∆19/20 (%)

Revenues

8,186.3

8,247.1

8,302.2

8,191.0

8,116.1

-0.9%

EBITDA

86.1

93.5

99.9

128.6

149.0

15.9%

% of Revenues

1.1%

1.1%

1.2%

1.6%

1.8%

EBIT

45.1

49.6

55.7

65.8

77.5

17.8%

% of Revenues

0.6%

0.6%

0.7%

0.8%

1.0%

EBT

3.7

12.0

16.0

24.7

39.9

61.5%

% of Revenues

0.0%

0.1%

0.2%

0.3%

0.5%

12 November 2020

Page 19

Building

Materials

Segment

Building Materials Segment 1-9/2020 Market developments

Sales in the German construction industry 1-8/2020 in % vs 20191

Building permissions in Germany Forecast 20202in 1,000

6.2%

6.7%

+1.9%

5.5%

360

367

49

4.2%

204

114

Construction

Commercial

Public-sector

Housing

2019

Private homes

Apartment

Other

2020

industry overall

construction

construction

buildings

housings

Sources: 1) Hauptverband der deutschen Bauindustrie; 2) Heinze Marktbericht, November 2020

12 November 2020

Page 21

Building Materials Segment 1-9/2020

Revenues and EBIT as against the previous year

Building Materials

In EUR m

+10.6%

1,275.2

1,410.5

Revenues

1-9 2019

1-9 2020

+68.2%

39.2

23.3

EBIT

1-9 2019

1-9 2020

  • Revenues: ∆ 19/20 EUR +135.3 million
  • EBIT: ∆ 19/20 EUR +15.9 million
  • Building materials business benefits from ongoing healthy construction activity; increase in sales across the entire building materials portfolio
  • Higher earnings driven by increase in sales from gardening & landscaping construction (+20.7% y/y), roof (+13.7% y/y) and building construction (+10.1% y/y)
  • Upbeat development ine-commerce - propensity to purchase via digital channels on the rise
  • Unused vacation budgets due to the Corona pandemic are likely to have been increasingly invested in the home

12 November 2020

Page 22

Financials Building Materials Segment 1-9/2020 Income Statement

In EUR m

1-9 2016

1-9 2017

1-9 2018

1-9 2019

1-9 2020

∆19/20 (%)

Revenues

1,168.6

1,218.6

1,292.6

1,275.2

1,410.5

10.6%

EBITDA

30.1

33.2

34.3

39.6

60.0

51.5%

% of Revenues

2.6%

2.7%

2.7%

3.1%

4.3%

EBIT

18.8

21.6

22.3

23.3

39.2

68.2%

% of Revenues

1.6%

1.8%

1.7%

1.8%

2.8%

EBT

7.9

11.8

12.5

14.4

29.6

> 100%

% of Revenues

0.7%

1.0%

1.0%

1.1%

2.1%

12 November 2020

Page 23

Innovation & Digitalisation Segment 1-9/2020 Revenues and EBIT as against the previous year

Digital Farming & eBusiness

In EUR m

+15.7%

7.0

8.1

Revenues

1-9 2019

1-9 2020

+17.6%

EBIT

-10.2

-8.4

1-9 2019

1-9 2020

  • Revenues: ∆ 19/20 EUR +1.1 million
  • EBIT: ∆ 19/20 EUR +1.8 million
  • Increase in sales from higher order intake; sale of smart farming solutions intensified
  • Smart Farming: positive development in soil sampling services & hardware components; launch of the NEXT marketplace trading platform of FarmFacts GmbH
  • eBusiness: increased online sales at the onset of the Corona pandemic; sales and earnings are, however, allocated to the individual segments
  • Burden on earnings eased, as scheduled

12 November 2020

Page 24

Other Activities 1-9/2020

In EUR m

-6.7%

10.4

9.7

Revenues

1-9 2019

1-9 2020

-98.5%

EBIT

-27.0

-53.6

1-9 2019

1-9 2020

  • Revenues: ∆ 19/20 EUR-0.7 million
  • EBIT: ∆ 19/20 EUR-26.6 million
  • EBIT consists of administrative costs and consolidation effects; decline compared withyear-earlier period caused by special effects and Corona
  • Absence of bank dividends and income from investments (EUR 11.8 million), hedging transactions for currency risks (EUR 7.0 million), as well as additional costs due to the Corona pandemic (EUR 3.9 million)
  • In theyear-earlier period: sale of Kartoffel-Centrum Bayern GmbH (EUR 3.9 million); AHG-Autohandelsgesellschaft mbh (EUR 3.1 million)

12 November 2020

Page 25

Group Financials

12 November 2020

Page 26

Group Financials 1-9/2020

Income Statement

in EUR m

1-9 2016

1-9 2017

1-9 2018

1-9 2019

1-9 2020

∆19/20 (%)

Revenues

11,439.3

11,980.3

12,196.7

12,473.0

12,197.8

-2.2%

EBITDA

177.3

188.1

127.2

223.9

264.8

18.3%

% of Revenues

1.5%

1.6%

1.0%

1.8%

2.2%

EBIT

85.4

90.3

28.3

77.3

102.7

32.9%

% of Revenues

0.7%

0.8%

0.2%

0.6%

0.8%

EBT

33.4

38.2

-26.7

-2.0

25.8

> 100%

% of Revenues

0.3%

0.3%

-0.2%

0.0%

0.2%

Consolidated net income

25.0

28.0

-19.0

-1.5

18.3

> 100%

Share of minority interest

18.1

20.2

19.1

18.9

20.1

6.3%

as % of net income

72.4%

72.1%

> -100%

> -100%

> 100%

Share of owners of parent company

6.9

7.8

-38.1

-20.4

-1.8

91.2%

as % of net income

27.6%

27.9%

> +100%

> +100%

-9.8%

Earnings per share (EPS) in EUR1

0.20

0.22

-1.09

-0.58

-0.05

91.4%

Earnings per share (EPS) in EUR2

-0.85

-0.33

61.2%

1) Earnings per share net of minority interest (prior to hybrid); 2) Earnings per share net of minority interest (after hybrid); previous year's figure corrected in accordance with IAS 8.49 a)

12 November 2020

Page 27

Group Financials 1-9/2020

Balance Sheet

In EUR m

1-9 2016

1-9 2017

1-9 2018

1-9 2019

FY 2019

1-9 2020

∆19/20 (%)

Total assets

6,608.0

7,045.2

7,618.1

8,947.2

8,867.2

9,413.3

6.2%

Equity

1,074.6

1,119.8

1,333.3

1,333.1

1,358.6

1,280.5

-5.7%

Equity ratio

16.3%

15.9%

17.5%

14.9%

15.3%

13.6%

Equity ratio adjusted*

19.5%

19.4%

20.6%

17.5%

20.0%

16.7%

In EUR m

1-9 2016

1-9 2017

1-9 2018

1-9 2019

FY 2019

1-9 2020

∆19/20 (%)

Non-current assets

2,276.2

2,435.8

2,407.7

3,069.5

3,276.6

3,300.9

0.7%

Current assets

4,297.0

4,586.3

5,205.0

5,824.4

5,585.9

6,109.6

9.4%

Provisions

897.4

928.4

999.9

983.2

1,084.4

1,104.0

1.8%

Long-term debt (Ci**)

1,223.6

1,171.9

1,118.4

1,418.3

1,301.1

1,320.2

1.5%

Long-term leasing liabilities

722.7

706.5

712.4

0.8%

Short-term debt (Ci**)

1,593.3

1,781.2

1,886.0

2,043.4

2,313.6

2,420.2

4.6%

Short-term leasing liabilities

21.9

68.2

67.7

-0.7%

* Adjusted for the reserve formed for actuarial profits and losses **Ci = Credit institute

12 November 2020

Page 28

Operational Outlook for FY 2020

12 November 2020

Page 29

Operational Outlook 2020

Energy Segment

  • Rise in earnings in the final quarter on the back of the sale of numerous plants in Europe and in the USA
  • Uptrend in sales from trading in PV components expected to continue
  • Renewable Energies: Result anticipated at the highyear-earlier level.
  • Potentialup-front buying effects for heat energy carriers (heating oil and wood pellets) due to CO2tax and the return to the 19% VAT rate as from 2021
  • Stable development expected for lubricants and fuels
  • Positive stimulus through the expansion of the new BayWa Mobility Solutions business (LNG fuel stations)
  • Conventional Energy: Adjusted for the earnings contribution from TESSOL in the previous year, highyear-earlier result achieved in the business unit is likely to be exceeded.

12 November 2020

Page 30

Operational Outlook 2020

Agriculture Segment

  • Price volatility is likely to persist due to the uncertainty caused by the Corona pandemic and stronger demand from China
  • BAST: additional opportunities through ongoing price volatility; stable development expected for speciality trading
  • Agriculture: cost of restructuring theagri-business in eastern Germany compensated by other business units in the segment
  • Global Produce: sale of German apple harvest atabove-average prices; greater area for cultivating apples (+4%) in New Zealand and the inclusion of Freshmax lift sales volumes; international activities also likely to benefit from Christmas business
  • Low price level for operating resources and VAT increase at the start of 2021 could lead to greater stockpiling by farmers
  • Agricultural Equipment: Service business likely to develop well through to the end of the year
  • Result expected to be higher than in the previous year despite the Corona crisis

12 November 2020

Page 31

Operational Outlook 2020

Building Materials Segment

  • High order backlog of the companies in the sector, as well as ongoing construction boom suggest continued strong demand for building materials
  • Positive stimulus from sustained low interest rate level and value added tax reduction
  • Greater investments in the home (renovation) instead of vacation (influence of Corona)
  • Optimisation of the online product mix and growing willingness of customers to purchase via digital channels likely to boost demand
  • Ongoing expansion ofhigher-margin own brand product range
  • Earnings contributions from project business in the final quarter (Schrobenhausen, Burgkirchen und Borna near Leipzig)
  • Further increase in earnings anticipated

12 November 2020

Page 32

Thank you for your attention!

United for success.

BayWa Share 2020

12 November 2020

Page 35

The BayWa share 2020:

Price performance compared with the SDAX and DAX

110%

06 November 2020:

performance & closing prices1

100%

BayWa

€27.20

-3,4%

closing price

90%

High on 17/02/2020

SDAX: 13,066.71

High on 23/07/20

SDAX

12,311.21*

80%

BayWa: € 29.85

High on 19/02/2020

-2,7%

closing price

DAX: 13,789.00

70%

DAX

12,480.02*

60%

Jun-20

Jul-20Aug-20Sep-20Oct-20Nov-20-6,8%

closing price

Jan-20Feb-20Mar-20Apr-20May-20

BayWa

SDAX

DAX

* points

Source: 1) Frankfurt Stock Exchange

12 November 2020

Page 36

BayWa Share 2020

Shareholder structure (30/09/2020)

BayWa share profile (30/09/2020)

38.4%34.6%

27.0%

Bayerische Raiffeisen-Beteiligungs AG Raiffeisen Agrar Invest AG

Freefloat

Stock exchanges

Segment

Security code

ISIN

Share capital

Number of shares

Denomination

Securitisation

Frankfurt, Munich, Xetra

Official Market / Prime Standard

no. 519406 and 519400

DE0005194062 and DE0005194005

EUR 90,314,398.72

35,279,062

No-par value shares with an arithmetical portion of € 2.56 each in the share capital

In the form of a global certificate deposited with Clearstream Banking AG. Shareholders participate as co-owners corresponding to the number of shares held (collective custody account)

12 November 2020

Page 37

Investor Relations Contact

Josko

André Pierre

Renate

Radeljic

Wahlen

Lorenz

Head of Investor Relations

Junior Investor Relations Manager

Assistant

T +49

(089) 92 22 3887

T +49 (089) 92 22 3879

T +49 (089) 92 22 3881

F +49

162 2828671

andrepierre.wahlen@baywa.de

renate.lorenz@baywa.de

josko.radeljic@baywa.de

Financial Calendar 2020/21

12th

2021

26th

6th

November

March

May

ANALYST

ANALYST

ANALYST

CONFERENCE

CONFERENCE,

CONFERENCE

Page 38

CALL Q3

Munich

CALL Q1

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