BayWa AG · XETR:BYW
BayWa — FY2011 Earnings Presentation
44 slides from BayWa's earnings presentation, Mar 30, 2012
Slide 1: Annual Financial Statements as per 31 December 2011 – Analysts' Conference
Annual Financial Statements as per 31 December 2011 Analysts‘ Conference Frankfurt/M, 30 March 2012 Klaus Josef Lutz, CEO Andreas Helber, CFO
Slide 2: Agenda
Agenda 1. Financial Year 2011 2. Group Financials 3. Performance of the Segments 4. Outlook for 2012 5. BayWa Share in 2011 Appendix BayWa AG 30/03/2012 page 2
Slide 3: Financial Year 2011
Financial Year 2011 BayWa AG 30/03/2012 page 3
Slide 4: Macroeconomic environment
Financial Year 2011 Macroeconomic environment Global economic output rises by +2.7% in real terms Development of gross domestic product (GDP) in important areas of the world* Germany +3.0% (strong export activities, domestic demand and healthy labour market) Euro area +1.6% (PIIGS debt crisis br
Slide 5: Expectations fulfilled
Financial Year 2011 Expectations fulfilled GOALS RESULTS Revenues > € 8.0 billion € 9.6 billion FINANCE EBIT > € 150 million € 151.4 million BayWa r.e EBIT > € 26 million € 27.1 million Economic profit > 6.80% WACC Except for DIY all business units exceed WACC target Intern
Slide 6: Highlights – T&G
Financial Year 2011 Highlights – T&G •- Intrinsic value Profitability International operations - Founded in 1897 - Vert. integrated business model - Global trading platform - New Zealand's market leader - Access to high-growth markets in - Presence on five continents Asia and Indonesia - Exclusive r
Slide 7: Highlights – T&G
Financial Year 2011 Highlights – T&G Locations - BayWa Fruit Shareholder structure T&G Bartel Freefloat Cooperation Frucom Fruitimport BayWa Nord, Jork 5% GmbH, Hamburg - 2010 12% Scales Sint-Truiden, Belgium 10% (Joint Venture) – 2009 Two locations in the Rhineland Palatinate Rhein-Neckar region We
Slide 8: Highlights – DIY&GC carve out
Financial Year 2011 Highlights – DIY&GC carve out Joint Venture BayWa/Hellweg Successful carve out and integration of the DIY&GC business unit into BayWa Bau und Garten GmbH & Co. KG effective 1 January 2012 High strategic fit enables leveraging of genuine cost/earnings synergies First above-b
Slide 9: Summary of the BayWa Group's Key Financials
Financial Year 2011 Summary of the BayWa Group‘s Key Financials Revenues EBIT EBT In EUR m Positive earnings position In EUR m In EUR m – Revenues and profit significantly higher y/y +21.3% +17.5% +12.2% – EBIT of EUR 151.4 m in line with forecast 9,586 128.9 151.4 87.1 97.7 7,903 – EBIT increases i
Slide 10: Multi-year comparison of EBIT
Financial Year 2011 Multi-year comparison of EBIT In EUR m 161.9 151.4 143.6 +12.7% -28.7% 17.5% Ø 140.2 128.9 115.4 11.7% 2007 2008 2009 2010 2011 BayWa AG 30/03/2012 page 10
Slide 11: Market trends
Financial Year 2011 Market trends 2011 AGRICULTURE – Farmers' income situation very positive – Prices of agricultural produce significantly higher y/y Harvest purchase prices average of around 30% above previous year – Price trend supported by growing demand and rising energy prices – Above averag
Slide 12: Group Financials
Group Financials BayWa AG 30/03/2012 page 12
Slide 13: Revenues and EBIT as against the previous year
Group Financials Revenues and EBIT as against the previous year Revenues In EUR m 21.3% – EUR 9,585.7 million (Δ 10/11: EUR +1,682.7 million / +21.3%) 9,585.7 – Revenues reach new all-time high 7,903.0 – All three core segments contributed to increase in revenues; increase largely due to higher pric
Slide 14: Final quarter as against the previous year
Group Financials Final quarter as against the previous year Revenues In EUR m 24.2% – EUR 2,542.8 million (Δ 10/11: EUR +495.2 million / +24.2%) 2,542.8 – Final quarter significantly higher y/y due to price levels 2,047.6 – Price increase in Agriculture and Energy – Significant increase in Energy Se
Slide 15: Key Financials - Income Statement
Group Financials Key Financials - Income Statement Group In EUR m 2008 2009 2010 2011 ∆10/11 (%) Revenues 8,794.6 7,260.2 7,903.0 9,585.7 21.3% EBITDA 258.1 209.7 228.2 253.6 11.1% % of revenues 2.9% 2.9% 2.9% 2.6% EBIT 161.9 115.4 128.9 151.4 17.5% % of revenues 1.8% 1.6% 1.6% 1.6% EBT 103.5 75.1 8
Slide 16: Key Financials - Balance Sheet
Group Financials Key Financials - Balance Sheet In EUR m 2008 2009 2010 2011 ∆10/11 (%) Total assets 3,065.8 2,939.3 3,253.3 3,913.0 20.3% Equity 915.1 957.5 1,005.5 1,068.0 6.2% Equity ratio 29.8% 32.6% 30.9% 27.3% In EUR m 2008 2009 2010 2011 ∆10/11 (%) Non-current assets 1,305.6 1,427.2 1,427.4 1
Slide 17: Key Financials - Cash Flow Statement
Group Financials Key Financials - Cash Flow Statement In EUR m 2008 2009 2010 2011 ∆10/11 (%) Consolidated net income 76.7 59.4 66.8 69.8 4.5% Cash flow from operating activities 215.5 243.9 -9.4 -27.5 -192.6% Cash flow from investing activities -143.9 -127.5 -113.5 -222.6 -96.1% Cash flow from fina
Slide 18: Economic Profit
Group Financials Economic Profit Net Operating Ø invested Economic In EUR m ROIC WACC Spread Profit capital profit Resources & Products 56.1 753.8 7.44% 6.80% 0.64% 4.8 Fruit 4.0 22.6 17.66% 6.80% 10.86% 2.5 Agri Equipment* 21.3 260.2 8.18% 6.80% 1.38% 3.6 Agriculture Segment 81.4 1,036.6 7.84% 6.80
Slide 19: Performance of the Segments
Performance of the Segments BayWa AG 30/03/2012 page 19
Slide 20: Agriculture Segment in 2011
Agriculture Segment in 2011 Seed Fertilisers Crop protection Grain Feedstuff Agricultural equipment Fruit BayWa AG 30/03/2012 page 20
Slide 21: Farmers' sentiment remains on a high level
Agriculture Segment in 2011 Farmers‘ sentiment remains on a high level Economic barometer for Agriculture as of December 2011 Source: Produkt+markt BayWa AG 30/03/2012 page 21
Slide 22: Agriculture: Revenues and EBIT as against the previous year
Agriculture Segment in 2011 Revenues and EBIT as against the previous year Revenues In EUR m 21.5% – Agri. Trade: EUR 3,029.6 million; ∆ 10/11 EUR +500.7 million (+19.8%) 4,258.9 – Agri. Equipm.: EUR 1,099.5 million; ∆ 10/11 EUR +226.2 million (+25.9%) 3,505.1 1,099.5 – Fruit: EUR 129.7 million; ∆ 1
Slide 23: Agriculture: Key Financials - Income Statement
Agriculture Segment in 2011 Key Financials - Income Statement Agriculture In EUR m 2008 2009 2010 2011 ∆10/11 (%) Revenues 4,048.9 3,269.8 3,505.1 4,258.9 21.5% EBITDA 156.5 82.3 102.0 115.4 13.1% % of revenues 3.9% 2.5% 2.9% 2.7% EBIT 112.9 44.2 63.9 78.0 22.1% % of revenues 2.8% 1.4% 1.8% 1.8% EBT
Slide 24: Energy Segment in 2011
Energy Segment in 2011 Fuels Heating oil Lubricants Solid biofuels BayWa r.e BayWa AG 30/03/2012 page 24
Slide 25: Energy: Market developments
Energy Segment in 2011 Market developments Multi-year comparison of heating oil prices 2009 – 2011 Capacity of PV plants remunerated under the German EEG Development of oil prices in Germany Annual installation 24,820 Installed capacity In MWp 7,500 17,320 7,406 9,914 17,320 3,794 6,120 4,170 1,950
Slide 26: Energy: Revenues and EBIT as against the previous year
Energy Segment in 2011 Revenues and EBIT as against the previous year Revenues In EUR m 31.9% – Conventional energy: ∆ 10/11 EUR +702.1 million (+33.4%) 3,111.8 – Revenue increase due to high oil price and acquisition of WAV (€ 300 m) 306.0 2,358.5 – Fuels and lubricants product segments report sale
Slide 27: Energy: Key Financials - Income Statement
Energy Segment in 2011 Key Financials - Income Statement Energy In EUR m 2008 2009 2010 2011 ∆10/11 (%) Revenues 2,462.5 1,837.5 2,358.5 3,111.8 31.9% EBITDA 19.9 26.2 41.7 51.9 24.5% % of revenues 0.8% 1.4% 1.8% 1.7% EBIT 10.9 17.8 30.3 33.4 10.2% % of revenues 0.4% 1.0% 1.3% 1.1% EBT 11.4 17.1 25.
Slide 28: Building Materials Segment in 2011
Building Materials Segment in 2011 Building Materials DIY & Garden Centres* * Carve out of German DIY & GC business as per 01/01/2012 BayWa AG 30/03/2012 page 28
Slide 29: Building Materials: Market developments
Building Materials Segment in 2011 Market developments Building permits in Germany [number of homes] Turnover of construction industry in Germany Nominal rate of change in percent y/y 2010 2011 2012* 17.7 12.5 6.6 6.0 2.5 -0.3 Construction overall Residential construction 13.9 5.8 3.0 -2.2 -2.5 -4.3
Slide 30: Building Materials: Revenues and EBIT as against the previous year
Building Materials Segment in 2011 Revenues and EBIT as against the previous year Revenues In EUR m 8.5% – Building Materials: ∆ 10/11 EUR +137.7 million (+10.0%) 2,065.5 – Long construction season delivers increase in revenues 1,903.1 DIY 532.3 557.0 – Loss of revenues resulting from the sale of no
Slide 31: Building Materials: Key Financials - Income Statement
Building Materials Segment in 2011 Key Financials - Income Statement Building Materials In EUR m 2008 2009 2010 2011 ∆10/11 (%) Revenues 1,785.8 1,776.1 1,903.1 2,065.5 8.5% EBITDA 56.5 55.2 47.5 65.6 38.1% % of revenues 3.2% 3.1% 2.5% 3.2% EBIT 21.5 24.2 18.3 36.5 99.5% % of revenues 1.2% 1.4% 1.0%
Slide 32: Outlook for 2012
Outlook for 2012 BayWa AG 30/03/2012 page 32
Slide 33: Outlook for the Financial Year 2012
Outlook for the Financial Year 2012 Outlook Good prospects for profit growth 2012 AGRICULTURE – Farmers' sentiment remains positive – Harvest forecasts anticipate higher trading volume – High price level for produce and operating resources expected to hold steady •AGRIC – Additional earnings through
Slide 34: The BayWa Share in 2011
The BayWa Share in 2011 BayWa AG 30/03/2012 page 34
Slide 35: The BayWa Share in 2011
The BayWa Share in 2011 Share price performance Share from 01/01/2011 until 01/02/2012 Closing price on 30/12/2010 € 35.04 High (06/01/2011) € 35.01 Low (08/08/2011) € 24.05 Closing price on 30/12/2011 € 27.30 Market capitalisation in EUR m As per 30/12/2010 1,193.50 As per 30/12/2011 936.26 Free fl
Slide 36: Shareholder structure and share profile
The BayWa Share in 2011 Shareholder structure as per 31/12/2011 BayWa share profile (December 2011) Bayerische Raiffeisen- Free float Stock exchanges Frankfurt, Munich, Xetra Beteiligungs AG 39.73% Segment Official Market/Prime Standard 35.15% Stock exch. index MDAX (Sec. code no. 519406 and 519400)
Slide 37: Thank you for your attention
Thank you for your attention The information in this presentation is partly made up of forward-looking statements which are based on assumptions and are subject to unforeseeable risks. In as much as the assumptions on the successful integration of acquisitions and on the internal growth of the compa
Slide 38: Appendix
Appendix BayWa AG 30/03/2012 page 38
Slide 39: Business Model & Revenue Segmentation
Business Model & Revenue Segmentation Revenues 2011 [in EUR m] Business Model – Financial investors – Agriculture Group 9,586 – Farmers – Building Materials – Mid-tier – Energy/renew- – B2B clients able Energy Agriculture 4,259 44% – SMEs Customers Markets BayWa Energy 3,112 32% AG Operating Activit
Slide 40: BayWa present in 17 countries
BayWa present in 17 countries GB PL BE DE CZ SK FR AT USA CH HU v SL HR IT SRB ES Agriculture Segment Energy Segment Building Materials Segment NZ BayWa AG 30/03/2012 page 40
Slide 41: Agriculture: Market price trends
Agriculture Segment in 2011 Market price trends Source: www.agrarzeitung.de Wheat international, Paris, 15/3/2012 Corn international, Paris, 15/3/2012 Closing price Closing price as of as of 15/03/2012 15/03/2012 Urea, Granulated urea ex Baltic Sea Ports, 15/3/2012 CAN, Calcium ammonium nitrate ex B
Slide 42: Agriculture: Grain Balance - World and Usage
Agriculture Segment in 2011 Grain Balance - World and Usage In millions of tons 06/07 07/08 08/09 09/10 10/11 11/12* Production 2.002 2.124 2.237 2.222 2.182 2.250 Opening balance 389 342 364 448 473 425 Available 2.391 2.466 2.601 2.670 2.655 2.675 Consumption 2.049 2.102 2.153 2.196 2.230 2.260 Cl
Slide 43: Other Activities: Revenues and EBIT as against the previous year
Other Activities Segment in 2011 Revenues and EBIT as against the previous year Revenues In EUR m 9.6% – EUR 149.4 million (Δ 10/11: EUR +13.1 million / +9.6%) 149.4 136.3 – Increase in revenues from Ybbstaler's higher business volume – Approval by the anti-trust authorities for JV between Agrana an
Slide 44: Contact and Financial Calendar
Contact and Financial Calendar Financial Calendar 2012 Head of Investor Relations March 2012 29/03 Annual Results Press Conference Josko Radeljic 30/03 Analysts‘ Conference, Frankfurt a.M. May 2012 BayWa AG 10/05 Press Release Q1 Arabellastr. 4 10/05 Analysts‘ Conference Call Q1 30/05 Annual General