Baywa Ag · XETR:BYW

Baywa — FY2015 Earnings Presentation

45 slides from Baywa's earnings presentation, Apr 1, 2016

  1. Slide 1: Annual Financial Statements as per 31 December 2015 – Analysts' Conference

    Annual Financial Statements as per 31 December 2015. Analysts‘ Conference Frankfurt/M, 01 April 2016 Prof. Klaus Josef Lutz, CEO Andreas Helber, CFO

  2. Slide 2: Agenda

    Agenda 1. Financial Year 2015 2. Performance of the Segments 3. Group Financials 4. Outlook for Financial Year 2016 Appendix BayWa AG 01 April 2016 Page 2

  3. Slide 3: Financial Year 2015

    Financial Year 2015 Prof. Klaus Josef Lutz BayWa AG 01 April 2016 Page 3

  4. Slide 4: Financial Year 2015 Highlights

    Financial Year 2015 Highlights GROUP  EBIT increase in a challenging global market environment  Ongoing internationalisation of business activities  Bonded loan (EUR 200 million) successfully placed  Further dividend increase planned AGRICULTURE  Founding of new trading offices in Russia, Ukrai

  5. Slide 5: Summary of the Group's key financials

    Financial Year 2015 Summary of the Group´s key financials Revenues EBIT in EUR bn in EUR m Overview -2.0% +3.9% – Price-induced revenue decline to EUR 14.9 billion 15.2 14.9 (∆ 14/15: EUR -273.7 million) 152.1 158.1  Strong downtrend in commodity prices! Commodity index at 12-year low! – Very stron

  6. Slide 6: Multi-year comparison of operating EBIT

    Financial Year 2015 Multi-year comparison of operating EBIT in EUR million 190.4 191.9 178.0 169.5 149.2 Ø 160.5 128.9 115.4 2009 2010 2011 2012 2013* 2014* 2015 * Figures adjusted BayWa AG 01 April 2016 Page 6

  7. Slide 7: Expansion progress

    Financial Year 2015 Expansion progress Operating EBIT contribution in EUR million Expansion (companies acquired from 2009 onwards) Core region (companies consolidated back in 2008) 200 150 100 50 0 2010 2011 2012 2013* 2014* 2015 Expansion 20.8% 18.5% 30.1% 44.4% 47.0% 55.7% percentage * Figures adj

  8. Slide 8: Strategic point of departure in 2009

    Financial Year 2015 Strategic point of departure in 2009 External challenges Internal challenges  Stagnating and partly contracting markets in  Expectation of a sustainable dividend the areas actively served increase  Growth capacity exhausted in core region  Expectation of growing enterprise va

  9. Slide 9: BayWa performance: comparison 2009 vs 2015

    Financial Year 2015 BayWa performance: comparison 2009 vs 2015 BayWa 2015 14.3 Earnings growth and increased profitability through establishing EBIT in € million BayWa 2009 25.5 BayWa new business International  Agri trading international 101.6  Fruit international 61.8  BayWa r.e. (international

  10. Slide 10: Development of dividend payments

    Financial Year 2015 Development of dividend payments Group dividend [€ m] Of which dividend of BayWa AG [€ m] Breakdown by 205 Dividend payment per share* [€] recipient [€ m] 202.4 170 36.0 35 33.0 33.5 BRB 30 60 25.9 25.4 25 19.9 RHI 20 18.1 17.1 170.0 43 15 29.5 27.6 25.8 22.3 10 20.5 Free- 17.1 f

  11. Slide 11: Performance of the Segments

    Performance of the Segments Prof. Klaus Josef Lutz BayWa AG 01 April 2016 Page 11

  12. Slide 12: Agriculture Segment 2015

    Agriculture Segment 2015 Grain Oilseed Seed Fertilisers Crop protection Feedstuff Fruit Agricultural equipment Digital Farming BayWa AG 01 April 2016 Page 12

  13. Slide 13: Market developments: Products

    Agriculture Segment 2015 Market developments: Products Products World grain balance (excluding rice; March 2016) In millions of tons  Global production of grain in 2015/16 running just under 2 billion tons – almost a repeat of the record year-earlier Inventory Produc- level despite unpredictable we

  14. Slide 14: Market developments: Inputs, Fruit, Equipment

    Agriculture Segment 2015 Market developments: Inputs, Fruit, Equipment Input Resources Fruit Agri-Equipment  Decline in fertiliser sales (-6.2%)  NZ apple harvest delivers high – Downturn in producer prices and crop protection owing to volume (+11% y/y); sales causes growing reluctance of fewer ap

  15. Slide 15: Revenues and EBIT: Agricultural Trade and Fruit

    Agriculture Segment 2015 Revenues and EBIT as against the previous year Agricultural Trade Fruit in EUR m in EUR m +1.1% +0.6% 8,230.7 8,321.4 563.9 567.4 Revenues Revenues -35.9% 64.9 +31.1% 41.6 27.0 EBIT 20.6 EBIT 2014* 2015 2014* 2015  Revenues: ∆ 14/15 EUR +90.7 million  Revenues: ∆ 14/15 EUR

  16. Slide 16: Revenues and EBIT: Agricultural Equipment and Digital Farming

    Agriculture Segment 2015 Revenues and EBIT as against the previous year Agricultural Equipment Digital Farming in EUR m in EUR m -3.8% 1,310.7 1,260.7 Revenues 5.2 Revenues -3.6% 22.3 21.5 EBIT EBIT -2.9 2014* 2015 2014 2015  Revenues: ∆ 14/15 EUR -50.0 million  Revenues: ∆ 14/15 EUR +5.2 million

  17. Slide 17: Energy Segment 2015

    Energy Segment 2015 Fuels Heating oil Lubricants Solid biofuels BayWa r.e. BayWa AG 01 April 2016 Page 17

  18. Slide 18: Energy Segment: Market developments

    Energy Segment 2015 Market developments Renewable Energies Conventional Energy - Global renewable energies boom: investments - Crude oil & heating oil prices fall to 7-year low of USD 329 billion in 2015 (+4.2% y/y) at year end - PV capacity installation at global record high - Sales decline in heat

  19. Slide 19: Revenues and EBIT: Conventional and Renewable Energies

    Energy Segment 2015 Revenues and EBIT as against the previous year Conventional Energy Renewable Energies in EUR m in EUR m -16.9% +29.5% 2,702.8 2,246.4 1,017.8 786.2 Revenues Revenues > +100% +69.3% 15.4 61.8 36.5 5.7 EBIT EBIT 2014* 2015 2014* 2015  Revenues: ∆ 14/15 EUR -456.4 million  Revenue

  20. Slide 20: Building Materials Segment 2015

    Building Materials Segment 2015 Building Materials BayWa AG 01 April 2016 Page 20

  21. Slide 21: Building Materials: Market developments

    Building Materials Segment 2015 Market developments Market trends Sentiment in German Construction Sector  Modest start to construction activities in Germany Construction Industry due to the long winter in 2015  Favourable weather conditions in the second half-year boost construction sector: reven

  22. Slide 22: Building Materials: Revenues and EBIT

    Building Materials Segment 2015 Revenues and EBIT as against the previous year Building Materials Segment in Mio. Euro Revenues: EBIT: -1.9% -2.1% 1,524.8 1,496.4 28.0 27.4 Building Materials Building Materials 2014 2015 2014* 2015  Revenues: ∆ 14/15 EUR -28.4 million  EBIT: ∆ 14/15 EUR -0.6 milli

  23. Slide 23: Group Financials

    Group Financials Andreas Helber BayWa AG 01 April 2016 Page 23

  24. Slide 24: Final quarter as against the previous year

    Group Financials Final quarter as against the previous year Revenues in EUR m +1.9% – EUR 3,831.4 million (Δ 14/15: EUR +71.9 million) – Revenue growth despite sharp decline in crude oil prices 3,759.5 3,831.4 – Increase in collection, storage and selling volumes of grain and oil seed – Renewable en

  25. Slide 25: Revenues and EBIT as against the previous year

    Group Financials Revenues and EBIT as against the previous year Revenues in EUR m -1.8%  EUR 14,928.1 million (Δ 14/15: EUR -273.7 million) 15,201.8 14,928.1  Price-induced decline in revenues (crude oil)  Sales growth in agricultural products and fruit  BayWa r.e. generates sharp increase in re

  26. Slide 26: Key Financials – Income Statement

    Group Financials Key Financials – Income Statement Group in EUR m 2011 2012 2013* 2014* 2015 ∆14/15 (%) Revenues 9,585.7 10,531.1 15,957.6 15,201.8 14,928.1 -1.8% EBITDA 251.3 306.6 281.4 279.8 288.3 3.0% % of Revenues 2.6% 2.9% 1.8% 1.8% 1.9% EBIT 149.2 186.8 137.4 152.1 158.1 3.9% % of Revenues 1.

  27. Slide 27: Agriculture Segment Income Statement

    Financials Agriculture Segment Income Statement Agriculture in EUR m 2011 2012 2013* 2014* 2015 ∆14/15 (%) Revenues 4,258.9 5,051.9 10,748.5 10,105.3 10,154.7 0.5% EBITDA 115.4 139.0 177.7 163.8 141.6 -13.6% % of Revenues 2.7% 2.8% 1.7% 1.6% 1.4% EBIT 78.0 91.0 121.4 107.8 87.2 -19.1% % of Revenues

  28. Slide 28: Energy Segment Income Statement

    Financials Energy Segment Income Statement Energy in EUR m 2011 2012 2013* 2014* 2015 ∆14/15 (%) Revenues 3,111.8 3,676.8 3,496.3 3,489.0 3,264.2 -6.4% EBITDA 51.9 72.6 77.9 74.1 114.8 54.9% % of Revenues 1.7% 2.0% 2.2% 2.1% 3.5% EBIT 33.4 43.0 45.1 42.3 77.2 82.5% % of Revenues 1.1% 1.2% 1.3% 1.2%

  29. Slide 29: Building Materials Segment Income Statement

    Financials Building Materials Segment Income Statement Building Materials in EUR m 2011 2012 2013* 2014* 2015 ∆14/15 (%) Revenues 2,065.5 1,740.4 1,703.1 1,524.8 1,496.4 -1.9% EBITDA 65.6 52.8 38.0 42.9 42.2 -1.6% % of Revenues 3.2% 3.0% 2.2% 2.8% 2.8% EBIT 36.5 35.4 23.9 28.0 27.4 -2.1% % of Revenu

  30. Slide 30: Key Financials – Balance Sheet

    Group Financials Key Financials – Balance Sheet Group in EUR m 2011 2012 2013* 2014* 2015 ∆14/15 (%) Total assets 3,922.0 4,460.2 5,199.3 5,652.0 6,036.7 6.8% Equity 1,045.2 1,078.0 1,115.0 1,050.4 1,075.9 2.4% Equity ratio 26.6% 24.2% 21.4% 18.6% 17.8% Equity ratio adjusted** 27.1% 23.8% 22.4% 21.4

  31. Slide 31: Balance sheet growth

    Group Financials Balance sheet growth 2015 Total assets Increase induced by acquisitions 2014 6,037 Increase/decrease induced by divestments or organic growth Total assets Adjustment of pension reserve 5,652 2013 In EUR million Total assets 2012 5,199 Total assets 2011 4,460 Total assets 2010 3,922

  32. Slide 32: Equity ratio and cash convertibility of assets

    Group Financials Equity ratio and cash convertibility of assets in EUR million Equity ratio 4: Total assets 27.3% Equity Equity ratio 3: Reduced by total readily 21.7% marketable inventories (agricultural products and input resources) + Equity ratio 2: Reduced by total readily non-recourse financing

  33. Slide 33: Change of equity by dividend payments and pension adjustments

    Group Financials Change of equity by dividend payments and pension adjustments Equity ratio: 24.5% 95 1,477 Equity ratio: 104 17.8% 202 1,076 Equity Dividend payments Pension reserve Pension reserve Equity adjusted since 2009* adjustment in 2012 adjustment in 2014 * Dividend payment in 2009 for Fina

  34. Slide 34: Key Financials – Cash Flow Statement

    Group Financials Key Financials – Cash Flow Statement Group in EUR m 2011 2012 2013* 2014* 2015 ∆14/15 (%) Consolidated net income 68.1 118.0 54.3 80.7 61.6 -23.7% Cash flow from operating activities -27.5 150.0 230.3 -90.6 19.0 > 100% Cash flow from investing activities -222.6 -193.7 84.5 -227.6 -1

  35. Slide 35: Economic Profit

    Group Financials Economic Profit Net Operating Ø Invested Economic in EUR million ROIC WACC Spread Profit Capital Profit Agri. Trade 41.6 1,158.5 3.59% 6.30% -2.71% -31.4 Fruit 27.0 291.7 9.26% 5.90% 3.36% 9.8 Agri. Equipment 21.9 388.2 5.64% 6.80% -1.16% -4.5 Agriculture Segment -26.1 Conventional

  36. Slide 36: Adjusted net debt in relation to EBITDA and equity

    Group Financials Adjusted net debt in relation to EBITDA and equity 2,382 85 181 Adjusted net debt Adjusted net debt EBITDA = 4.7 = 1.06 Adjusted equity* 737 1,379 1,379 1,379 1,291 288 Liabilities Cash Non- Readily Adjusted Adjusted EBITDA Adjusted Adjusted Recourse marketable net debt net debt net

  37. Slide 37: Other Activities 2015: Revenues and EBIT

    Other Activities 2015 Revenues and EBIT as against the previous year in EUR m -84.5% 82.7 Revenues 12.8 -29,6% EBIT -26.0 -33.7 2014* 2015  Revenues: ∆ 14/15 EUR -69.9 million  EBIT: ∆ 14/15 EUR -7.7 million  Revenues 2014 include building materials activities in the locations sold in NRW and Rhi

  38. Slide 38: Outlook for Financial Year 2016

    Outlook for Financial Year 2016 Prof. Klaus Josef Lutz BayWa AG 01 April 2016 Page 38

  39. Slide 39: Outlook for 2016

    Outlook for 2016 AGRICULTURE – Strong collection and storage business expected for agricultural products – Increase in trading volume (ca 32 million t) through acquisitions (Wessex, Evergrain) and new trading offices – Positive start of the BAGI companies AGRICU – Input resources business likely to

  40. Slide 40: Thank you for your attention!

    Thank you for your attention!

  41. Slide 41: Appendix

    Appendix BayWa AG 01 April 2016 Page 41

  42. Slide 42: BayWa Share 2015

    BayWa Share 2015 BayWa AG 01 April 2016 Page 42

  43. Slide 43: BayWa Share 2015: Share price performance

    BayWa Share 2015 Share price performance Share Aktie from 01/01/2015 to 18/03/2016 Closing price on 30/12/2014 € 30.62 High (15/04/2015) € 38.75 Low (14/12/2015) € 27.05 Closing price on 30/12/2015 € 28.40 Market capitalisation in EUR m As per 31/12/2014 1,061.6 As per 31/12/2015 987.7 Freefloat mar

  44. Slide 44: BayWa Share 2015: Shareholder structure and share profile

    BayWa Share 2015 Shareholder structure as per 31/12/2015 BayWa share profile (December 2015) Bayerische Raiffeisen- Freefloat Stock exchanges Frankfurt, Munich, Xetra Beteiligungs AG 39.58% Segment Official Market/Prime Standard 35.22% Stock exch. index SDAX (Sec. code no. 519406 and 519400) ISIN DE

  45. Slide 45: Contact and Financial Calendar

    Contact and Financial Calendar Financial Calendar 2016/17 Head of Investor Relations April 2016 Josko Radeljic 01/04 Analysts` Conference, Frankfurt a.M. BayWa AG May 2016 12/05 Analysts´ Conference Call Q1 St.-Martin-Str. 76 June 2016 81541 Munich 07/06 Annual General Meeting, ICM Munich Germany Au

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