Baywa Ag · XETR:BYW
Baywa — FY2023 Earnings Presentation
48 slides from Baywa's earnings presentation, Mar 28, 2024
Slide 1: Analysts' Conference
Annual Financial Statements as per 31 December 2023 Analysts’ Conference Munich, 28 March 2024 Marcus Pöllinger, CEO Andreas Helber, CFO
Slide 2: Agenda
Agenda 01 Overview Financial Year 2023 02 Business Development of the Segments in 2023 and Operational Outlook 2024 03 Group Financials 2023 04 Outlook 05 Appendix 28/03/2024 | 2
Slide 3: Overview Financial Year 2023
01 Overview Financial Year 2023 Marcus Pöllinger, CEO 28/03/2024 | 3
Slide 4: Strategic Milestones in 2023
01 | Overview Financial Year 2023 Strategic Milestones in 2023 ▪ “Strategy 2030” approved ▪ Sale of software business and distribution (NEXT Farming) to AGCO ▪ New enterprise resource planning system → Implementation of the first sub-packages of the core program (SAP – S4/HANA) ▪ BayWa r.e. Sale of
Slide 5: Summary Financial Results 2023
01 | Overview Financial Year 2023 Summary Financial Results 2023 Revenues EBIT ▪ Price-induced decline in revenue to EUR 23.9 billion (EUR –3.1 bn y/y) in EUR m in EUR m → Steep downtrend in commodity prices -11.5% -39.7% (Bloomberg Commodity Index –12.5% y/y) 27,061.8 504.1 23,948.2 19,839.1 304.0
Slide 6: Development of the Group 2023 Multi-year comparison of EBIT
01 | Overview Financial Year 2023 Development of the Group 2023 Multi-year comparison of EBIT in EUR m 504.1 304.0 Ø 294.9 266.6 211.6 188.4 2019 2020 2021 2022 2023 28/03/2024 | 6
Slide 7: EBIT One-Offs and Economics 2023
01 | Overview of the Financial Year 2023 EBIT One-Offs and Economics 2023 In EUR m Cyclone Write-downs of Anniversary FarmFacts Downside Downside Upside Upside damage solar modules costs Output Building CEE/RLG Agricultural Cefetra Group Materials Equipment 26.5 -32.0 -17.0 40.0 10.0 30.0 34.0 430.5
Slide 8: Earnings development in the Group 2021 to 2023
01 | Overview Financial Year 2023 Earnings development in the Group 2021 to 2023 in EUR m Tax effect EBIT EBT Consolidated -55.7 EUR m . net income in particular value adjustment of tax loss carryforwards and interest rate cap as non-cash tax expense 504.1 304.0 319.6 266.6 239.5 160.6 128.8 -37.7 -
Slide 9: Business Development of the Segments in 2023 and Operational Outlook 2024
02 Business Development of the Segments in 2023 and Operational Outlook 2024 Marcus Pöllinger, CEO 28/03/2024 | 9
Slide 10: Energy Business Unit Key Figures 2023
02 | Energy Business Unit – Development in 2023 Business Unit Segment Segment Energy Renewable Energy Energies Key Figures 2023 28/03/2024 | 10
Slide 11: Market Developments – Renewable Energies
02 | Energy Business Unit – Development in 2023 Market Developments – Renewable Energies Drastic price drop for PV modules since January 20231 Global investment in renewable energy in 20232 in EUR / Wp Wind Solar 0,35 Jan 23 - Mar 24 -57% 216.6 bn USD 392.7 bn USD 0,30 (+2% y/y) (+12% y/y) 0,25 Aver
Slide 12: Renewable Energies Segment Revenues and EBIT vs previous year
02 | Energy Business Unit – Development in 2023 Renewable Energies Segment Revenues and EBIT vs previous year ▪ Revenues: ∆ 22/23 EUR -699.8 million ▪ EBIT: ∆ 22/23 EUR -45.3 million _________________________________________________________________________________ ▪ Revenue decline due to falling en
Slide 13: Market Developments – Energy
02 | Development in 2023 – Energy Business Unit Market Developments – Energy Price trend of Brent crude1 Fuel costs in Germany3 Brent crude price in EUR per barrel Fuel costs in cent per kWh Mar 23 bis Mar 24 115 -33% Heating oil 10.44 ct/kWh Price in ct/kWh Gas 9.87 ct/kWh 105 95 Ø 84.1 85 Wood pel
Slide 14: Energy Segment Sales and EBIT vs previous year
02 | Energy Business Unit – Development in 2023 Energy Segment Sales and EBIT vs previous year ▪ Revenues: ∆ 22/23 EUR -523.6 million ▪ EBIT: ∆ 22/23 EUR -35.8 million _________________________________________________________________________________ ▪ Price- and volume-induced decline in revenues Re
Slide 15: Agriculture Business Unit Key Figures 2023
02 | Agriculture Business Unit – Development in 2023 Business Unit Segment Segment Agriculture Cefetra Agri Trade Group & Service Key Figures 2023 Segment Segment Agricultural Global Equipment Produce 28/03/2024 | 15
Slide 16: Market Developments – Agricultural Products
02 | Agriculture Business Unit – Development in 2023 Market Developments – Agricultural Products AGRI COMMODITIES PRICE TREND 1 MATIF Wheat MATIF Rape seed ▪ H1 2022: prices increase in the agri commodities market as a result of the war against Ukraine and concerns about grain availability ▪ H2 2022
Slide 17: Cefetra Group Segment Revenues and EBIT vs previous year
02 | Agriculture Business Unit – Development in 2023 Cefetra Group Segment Revenues and EBIT vs previous year ▪ Revenues: ∆ 22/23 EUR -801.9 million ▪ EBIT: ∆ 22/23 EUR +5.1 million _________________________________________________________________________________ ▪ Price-induced decline in revenues
Slide 18: Market Developments – Operating Resources
02 | Agriculture Business Unit – Development in 2023 Market Developments – Operating Resources FERTILIZER PRICES OPERATING RESOURCES TRADE IN GERMANY IN 2023 In EUR/tons K-fertilizer N-fertilizer ▪ Fertilisers: 1100 - Falling production costs and easing of the supply situation have led to 1000 signi
Slide 19: Agri Trade & Service Segment Revenues and EBIT vs previous year
02 | Agriculture Business Unit – Development in 2023 Agri Trade & Service Segment Revenues and EBIT vs previous year ▪ Revenues: ∆ 22/23 EUR -851.4 million ▪ EBIT: ∆ 22/23 EUR -78.3 million _________________________________________________________________________________ ▪ Price-induced decline in r
Slide 20: Market Developments – Agricultural Equipment
02 | Agriculture Business Unit – Development in 2023 Market Developments – Agricultural Equipment REVENUES IN THE AGRICULTURAL EQUIPMENT SECTOR REACH RECORD HIGH 1 Agricultural equipment revenues New registrations of tractors in Germany1 in Germany1 In EUR bn Number +21% 0% 15.0 30,360 30,336 12.4 2
Slide 21: Agricultural Equipment Segment Revenues and EBIT vs previous year
02 | Agriculture Business Unit – Development in 2023 Agricultural Equipment Segment Revenues and EBIT vs previous year ▪ Revenues : ∆ 22/23 EUR +162.8 million ▪ EBIT: ∆ 22/23 EUR +14.4 million _________________________________________________________________________________ ▪ Growth in revenues and
Slide 22: Market developments – fruit
02 | Agriculture Business Unit – Development in 2023 Market developments – fruit APPLE HARVEST TREND IN NEW ZEALAND FROM 2020 TO 2024e APPLE PRICES IN GERMANY 3 New Zealand 2 In euro cent / kilo in ktons The Hawkes Bay region 82 hardest hit by tropical 575 storm; harvest losses of up to -30% 77 558
Slide 23: Global Produce Segment Revenues and EBIT vs previous year
02 | Agriculture Business Unit – Development in 2023 Global Produce Segment Revenues and EBIT vs previous year ▪ Revenues: ∆ 22/23 EUR -42.7 million ▪ EBIT: ∆ 22/23 EUR -36.2 million _________________________________________________________________________________ ▪ T&G: massive burden on the result
Slide 24: Building Materials Business Unit Key Figures 2023
02 | Building Materials Business Unit – Development in 2023 Business Unit Segment Building Building Materials Materials Key Figures 2023 30/03/2023 | 24
Slide 25: Market Developments – Building Materials
02 | Building Materials Business Unit – Development in 2023 Market Developments – Building Materials DEVELOPMENT OF INCOMING ORDERS/BACKLOG IN THE FEDERAL GOVERNMENT'S TARGET FOR NEW RESIDENTIAL CONSTRUCTION 1 CONSTRUCTION IS MISSED BY 125,000 FLATS EVERY YEAR 1 190 182.8 Annual additions (in thousa
Slide 26: Building Materials Segment Revenues and EBIT vs previous year
02 | Building Materials Business Unit – Development in 2022 Building Materials Segment Revenues and EBIT vs previous year ▪ Revenues: ∆ 22/23 EUR -358.6 million ▪ EBIT: ∆ 22/23 EUR -63.8 million _________________________________________________________________________________ ▪ Volume-induced declin
Slide 27: Innovation & Digitalisation Key Figures 2023
02 | Segment Innovation & Digitalisation – Development in 2023 Segment Innovation & Digi- talisation Key Figures 2023 30/03/2023 | 27
Slide 28: Innovation & Digitalisation Segment Revenues and EBIT vs previous year
02 | Segment Innovation & Digitalisation – Development in 2023 Innovation & Digitalisation Segment Revenues and EBIT vs previous year ▪ Revenues : ∆ 22/23 EUR 0.0 million ▪ EBIT: ∆ 22/23 EUR +0.6 million _________________________________________________________________________________ ▪ Revenues at
Slide 29: Group Financials 2023
03 Group Financials 2023 Andreas Helber, CFO 28/03/2024 | 29
Slide 30: Other Activities 2023
03 | Group Financials 2023 Other Activities 2023 ▪ Revenues: ∆ 22/23 EUR +1.6 million ▪ EBIT: ∆ 22/23 EUR +39.2 million _________________________________________________________________________________ ▪ EBIT consists of administrative costs and consolidation Revenues in EUR m EBIT in EUR m effects
Slide 31: Financials Energy Business Unit Income Statement
03 | Group Financials 2023 Financials Energy Business Unit Income Statement In EUR m 2019 2020 2021 2022 2023 ∆22/23 (in %) Revenues 4,474.3 3,954.9 5,688.2 9,832.8 8,609.4 -12.4 EBITDA 176.7 212.3 231.8 435.6 305.4 -29.9 % of Revenues 3.9% 5.4% 4.1% 4.4% 3.5% EBIT 127.4 142.7 152.4 292.7 211.6 -27.
Slide 32: Financials Agriculture Business Unit Income Statement
03 | Group Financials 2023 Financials Agriculture Business Unit Income Statement In EUR m 2019 2020 2021 2022 2023 ∆22/23 (in %) Revenues 10,857.5 10,588.2 12,044.7 14,859.7 13,326.5 -10.3 EBITDA 188.2 206.9 256.5 387.4 271.1 -30.0 % of Revenues 1.7% 2.0% 2.1% 2.6% 2.0% EBIT 96.6 103.5 142.3 255.5 1
Slide 33: Financials Building Materials Business Unit Income Statement
03 | Group Financials 2023 Financials Building Materials Business Unit Income Statement In EUR m 2019 2020 2021 2022 2023 ∆22/23 (in %) Revenues 1,702.8 1,899.0 2,084.2 2,346.9 1,988.3 -15.3 EBITDA 57.0 75.7 104.0 105.7 44.2 -58.2 % of Revenues 3.3% 4.0% 5.0% 4.5% 2.2% EBIT 32.1 46.9 73.2 70.4 6.6 -
Slide 34: Income Statement
03 | Group Financials 2023 Income Statement In EUR m 2019 2020 2021 2022 2023 ∆22/23 (in %) Revenues 17,059.0 16,464.7 19,839.1 27,061.8 23,948.2 -11.5 EBITDA 403.0 464.8 552.8 858.8 587.3 -31.6 % of Revenues 2.4% 2.8% 2.8% 3.2% 2.4% EBIT 188.4 211.6 266.6 504.1 304.0 -39.7 % of Revenues 1.1% 1.3% 1
Slide 35: Balance Sheet
03 | Group Financials 2023 Balance Sheet In EUR m 2019 2020 2021 2022 2023 ∆22/23 (in %) Total assets 8,781.9 8,950.0 11,771.4 12,976.4 12,518.7 -3.5 Equity 1,253.4 1,153.6 1,816.1 1,909.0 1,713.0 -10.3 Equity ratio 14.3% 12.9% 15.4% 14.7% 13.7% Equity ratio adjusted1 17.6% 16.2% 17.8% 16.0% 15.3% I
Slide 36: Cash Flow Statement
03 | Group Financials 2023 Cash Flow Statement In EUR m 2019 2020 2021 2022 2023 ∆22/23 (in %) Cash Earnings 213.9 399.5 491.0 695.6 439.2 -36.9 Cash flow from operating activities -24.9 675.9 -583.6 -337.2 455.0 > 100 Cash flow from investing activities -149.4 -251.5 -197.2 -293.2 -378.7 29.2 Cash
Slide 37: Adjusted net debt in relation to EBITDA and equity
03 | Group Financials 2023 Adjusted net debt in relation to EBITDA and equity Adjusted net debt Adjusted net debt = 1.91 = 6.2 EBITDA Adjusted Equity* 5,424 233 3,657 3,657 575 959 3,657 1,913 587 Liabilities Cash Non-Recourse- Readily Adjusted Adjusted net debt EBITDA Adjusted net debt Adjusted equ
Slide 38: Economic Profit 2023
03 | Group Financials 2023 Economic Profit 2023 Operating In EUR m Ø Invested ROIC WACC Spread Economic Profit Capital (in %) (in %) (in %) Profit Renewable Energies 193.8 3,266.9 5.93 7.90 - 1.97 - 64.3 Energy 17.8 130.6 13.64 8.60 5.04 6.6 Cefetra Group 64.6 636.5 10.16 7.00 3.16 20.1 Agri Trade &
Slide 39: Outlook
04 Outlook Marcus Pöllinger, CEO 28/03/2024 | 39
Slide 40: Our Strategy 2030, based on 3 core elements and backed by 9 areas of action
04 | Outlook Our Strategy 2030, based on 3 core elements and backed by 9 areas of action will pave the way for enduring success Mastering Improving Realising markets in operating value creation basic human model by for impact needs excellence Steering through Improving strategy Enhancing portfolio m
Slide 41: 10 major measures to be implemented until 2026
04 | Outlook 10 major measures to be implemented until 2026 Goal: improve earnings while optimizing inventory management and reducing debt Major measures Entity Effects in EUR Timing 2024-2026 Cluster 1. Rightsize BayWa r.e. (Solar Trade) CE: -150 m 24 Hold/Improve business 2. Rightsize Agri Equipme
Slide 42: Lower interest expense and operational improvement lead to positive EBT
04 | Outlook Lower interest expense and operational improvement lead to positive EBT EUR m EBIT Interest EBT expense 365 - 385 304 65 - 75 -38 -342 -(300 – 310) 2023 2024e 2023 2024e 2023 2024e 28/03/2024 | 42
Slide 43: Thank you for your attention
Thank you for your attention Munich, 28 March 2024 Marcus Pöllinger, CEO Andreas Helber, CFO
Slide 44: Appendix
05 Appendix BayWa 28/03/2024 | 44
Slide 45: BayWa share 2024: Price performance compared with the SDAX
05 | Appendix BayWa share 2024: Price performance compared with the SDAX BayWa SDAX 1 January to 26 March 2024: 110% performance & closing price1 105% BayWa 100% 25.55€ 95% -18.4% closing price 90% 85% SDAX 80% 14,250.02* 2.1% closing price 75% Jan-24 Feb-24 Mar-24 Source: 1) Frankfurt Stock Exchang
Slide 46: BayWa share 2023
05 | Appendix BayWa share 2023 Shareholder structure (31/12/2023) BayWa share profile (31/12/2023) Stock exchanges Frankfurt, Munich, Xetra Segment Official Market / Prime Standard 33.8% Security code no. 519406 and 519400 38.1% ISIN DE0005194062 and DE0005194005 Share capital EUR 92,497,210.88 Numb
Slide 47: Investor Relations Contact / Financial Calendar 2024
05 | Appendix Investor Relations Contact Financial Calendar 2024 28 8 11 March May June ANALYSTS‘ ANALYSTS‘ ANNUAL CONFERENCE CONFERENCE GENERAL MEETING, Josko Radeljic André Pierre Wahlen Katrin Kolb FY 2023 CALL Q1 ICM MUNICH Head of Investor Relations Investor Relations Manager (IN PERSON) Invest
Slide 48: Disclaimer
05 | Appendix Disclaimer Forward-looking statements and guidance This presentation includes forward-looking statements. These statements are based on current assessments and forecasts of management and draw on information currently available. These forward-looking statements are therefore not a guar