Financial Statements of the BayWa Group as at 31 December 2006

Transcription

1 Financial Statements of the BayWa Group as at 31 December 2006 Analysts Conference on 29 March 2007 Wolfgang Deml, Chairman of the Board of Management

2 Highlights 2006 Performance of the segments Key Data of the Group Outlook for 2007 Share Back Up Contents Wolfgang Deml 2

3 Highlights des Geschäftsjahres 2006 Tailwind for the construction sector used profitably Extreme weather conditions in agribusiness mastered Sales above the EUR 7 billion threshold for the first time Profit targets exceeded and new benchmark for ordinary profit Pursuing of expansion strategy in agriculture and building materials Ongoing system optimisation through inventory control system (ICS) Stock exchange value up by EUR 241 million (plus 41 percent) Financial year 2006 brought to a successful conclusion Highlights Wolfgang Deml 3

4 Final quarter of 2006 records considerable growth in EUR m % in EUR m 15,0 10, % , Q2005 4Q2006 0,0 4Q2005 4Q2006 Sales Ordinary profit Highlights Wolfgang Deml 4

5 Highlights 2006 Performance of the segments Key Data of the Group Outlook for 2007 Share Back Up Contents Wolfgang Deml 5

6 Agriculture Segment Financial Statements Wolfgang Deml 6

7 Agriculture Segment: Performance in 2006 Equipment and resources business hampered by long, cold period at the start of the year Long winter causes delay in the blossoming of vegetation Lower level of output of fertilizers and crop protection Catching-up effect through healthy business in autumn Crop business develops well Positive marketing scenario in the first half-year Average harvest (volume stable, quality poorer) drives prices Fiercer competition between food and energy industries pushes up prices Sentiment in the agricultural industry buoys propensity to invest Sentiment index reaches its highest level More investment by farmers Development of agribusiness much better in the second half year Financial Statements Wolfgang Deml 7

8 Agriculture Segment: Sales in a y/y comparison in EUR m % + 2% Agriculture Agricultural Equipment Strong final quarter: quarterly sales ( 741 agricultural equipment) Upfront buying of agricultural equipment due to VAT hike greater than expected Total of 4,611 tractors sold (plus 1,079) Grain and oil seed make up for decline in operating resources in 1H06 Expansion of group of consolidated companies generates EUR 31 million worth of sales % * Adjusted for additions owing to the expansion of the group of consolidated companies Sales increase owing to strong final quarter Financial Statements Wolfgang Deml 8

9 Agriculture Segment: ordinary profit in a y/y comparison in EUR m % 25.7 Profit with extraordinary expenses in the agricultural equipment business: Spare parts adjusted 2.9 m Conversion to ICS 6.8 m % - 100% Agriculture Agricultural Equipment Reserves through the implementation of ICS: Booking off of obsolete components owing to deesretailed inventory management Change in the sequence of use (moving average) Risk reserves are the reason for a decline in the Agricultural Equipment s result Financial Statements Wolfgang Deml 9

10 Agriculture Segment: adjusted ordinary profit in a y/y comparison in EUR m % 40.8 Agricultural Equipment and Agriculture achieve an increase at the operational level % Agriculture Agricultural Equipment Strong tractor business generates operating growth in agricultural equipment Increase in equipment, resources and products, in particular in Austria and Eastern Europe % Agricultural Equipment in particular improves operating result Financial Statements Wolfgang Deml 10

11 Agriculture Segment: year-on-year comparison in EUR m % Sales EBITDA as % of sales 3.4 % 3.1 % EBIT as % of sales 1.9 % 1.7 % Profit before tax as % of sales 1.2 % 0.9 % Profit burdened by special effects in Agricultural Equipment Financial Statements Wolfgang Deml 11

12 Agriculture Segment: Strategy implementation in 2006 Reorganisation of Agricultural Equipment Optimisation of sales operations and locations Concentration: 37 locations allocated to 7 centres of competence 5 closures in 2006; opening of Werneck und Feldkirchen (Austria) Centres of Competence Expansion Acquisitions in Slovakia: Sempol Seed (sales of 10 million) Germany: five agricultural trading companies ( sales of 30 million) ICS rollout System optimisation Rollout of the inventory control system since 2004 Rollout in Agricultural Equipment concluded for the most part; currently being implemented in Agriculture, to be concluded by December 2007 Ongoing implementation of Agriculture strategy Back Up Wolfgang Deml 12

13 Building Materials Segment Financial Statements Wolfgang Deml 13

14 Building Materials Segment: performance in 2006 Construction industry emerges from the crisis Building materials trade grows 14% in Germany Shortfall in various building materials causes longer delivery times; existing resources fully utilised Mild winter means business was conducted right up to the end of the year DIY&GC business expands in second half of the year; BayWa outperforms the market Autumn quarter sees slight increase in consumption Building Materials Business records substantial increase again Financial Statements Wolfgang Deml 14

15 Building Materials Segment: sales in a y/y comparison in EUR m % + 15% Building Materials DIY & Garden Centers Building Materials business unit uses economic tailwind to raise sales Building Materials sales of 435 m in 4Q around 28% higher year on year * Acquisition-related sales in 2006: 15 million % DIY&GC in Austria grew more swiftly than in Germany * Adjusted for additions through acquisitions Construction economy triggers a boom in sales Financial Statements Wolfgang Deml 15

16 Building Materials Segment: ordinary profit in a y/y comparison in EUR m % + 136% % Building Materials DIY&Garden Leap in profit owing to brisker building materials business Concentration on special building materials pays off (standard building materials only around 11%) Above-average increase in profit also due to system optimisation DIY&GC still posts weak result Extraordinary expenses for restructuring measures ( 4.5 million) Building Materials business sees profit rise sharply Financial Statements Wolfgang Deml 16

17 Building Materials Segment: year-on-year comparison in EUR m % Sales EBITDA 54, as % of sales 3.2 % 3.2 % EBIT as % of sales 1.2 % 1.5 % Profit before tax as % of sales 0.4 % 0.8 % Margin increases from a low level Financial Statements Wolfgang Deml 17

18 Building Materials Segment: strategy implementation in 2006 Expansion Pursuit of expansion in central Germany/Württemberg: around 15 projects feasible, 6 of them being closely reviewed Takeover of two building materials trading companies in 3Q Zügel KG, Murrhardt, BW: sales of 8 million Mobau-Marba GmbH, Herten, NRW: sales of 20 million Retail Strategic repositioning, structural adjustments, introduction of category management Building Materials strengthens its position Back Up Wolfgang Deml 18

19 Energy Segment Financial Statements Wolfgang Deml 19

20 Energy Segment : performance in 2006 As from August, price of crude oil on the decline (peak price: $ 78 per barrel); recently, however, back to the level of the previous year ($ 60 per barrel) Good fuel business, especially in the first half-year despite prices being at a high level Fuel: petrol sales on the decline in line with long-term trend; diesel has growth potential Decline in volume of up to 50% for biodiesel following taxation as from August Lubricants business virtually unchanged from 2005 Strong demand for wood pellets (volume risen by 100% to 121,000 tons); but prices currently in a downtrend due to the mild winter Energy concludes successful financial year Financial Statements Wolfgang Deml 20

21 Energy Segment : sales in a y/y comparison in EUR m % Volume- and price-induces sales increase Heating oil sales volume substantially higher than in 2005 (plus 15%) Tank levels of households have returned to normal 500 Despite mild weather increase of 3% in final quarter 3% as compared with Volume- and price-induced increase in sales Financial Statements Wolfgang Deml 21

22 Energy Segment : ordinary profit in a y/y comparison in EUR m % 8.8 Strong final quarter boosts result Ordinary profit still at a high level 7, , Energy succeeds in outperforming the result of 2005 despite mild weather Financial Statements Wolfgang Deml 22

23 Energy Segment: year-on-year comparison in EUR m % Sales EBITDA as % of sales 0.9 % 0.9 % EBIT as % of sales 0.5 % 0.5 % Profit before tax as % of sales 0.4 % 0.4 % Profit higher as compared with 2005 Financial Statements Wolfgang Deml 23

24 Other Activities Segment Financial Statements Wolfgang Deml 24

25 Other Activities Segment: sales in a y/y comparison in EUR m % 403 Car dealer operations (+ 87 million) Takover of car dealers in Baden- Württemberg and expansion of the group of consolidated companies (BAG, Wiech) 200 Upfront buying from pending VAT hike 100 Food production (+ 29 million): sales-induced increase Segment sales also benefits from VAT increase Financial Statements Wolfgang Deml 25

26 Other Activities Segment: ordinary profit in a y/y comparison in EUR m % 20.4 Special effects: gains from the sale of R+V Allgemeine Versicherungs AG share Atys Austria GmbH 15 In 2005, Aktuell Versicherungsagentur Net of special effects, considerable Sales proceeds form part of the profit of the segment Financial Statements Wolfgang Deml 26

27 Other Activities Segment : year-on-year comparison in EUR m % Sales EBITDA as % of sales 1) EBIT > as % of sales 1) Profit before tax > as % of sales 1) ) Cannot be disclosed because of inclusion of financial participations Extraordinary result of the segment owing to streamlining of the portfolio Financial Statements Wolfgang Deml 27

28 Highlights 2006 Performance of the segments Key data of the Group Outlook for 2007 Share Back Up Contents Wolfgang Deml 28

29 Group: Results Key Data Financial Statements Wolfgang Deml 29

30 Group IFRS: y/y comparison of sales and ordinary profit in EUR m +11.7% in m EUR +65.8% Sales Ord.profit* Sales and profit set new benchmarks *Ordinary profit Financial Statements Wolfgang Deml 30

31 Group IFRS: y/y comparison of adjusted profit in EUR m % 85 Major streamlining measures in 2006: Sale of participations 21 m Closure of locations, structural measures for expansion 20 m Risk provisioning 11 m Adjusted ord. profit* Adjusted pre-tax result way in excess of the target of 60 + x million *Ordinary profit Financial Statements Wolfgang Deml 31

32 Consolidated income statement: year-on-year comparison in EUR m % Sales EBITDA as % of sales 2.6 % 2.8 % EBIT as % of sales 1.2 % 1.5 % Profit before tax as % of sales 0.6 % 1.0 % Net profit as % of sales 0.6 % 0.8 % Profit data show a gratifying increase Financial Statements Wolfgang Deml 32

33 Group Balance Sheet Key Data Financial Statements Wolfgang Deml 33

34 Group IFRS: y/y comparison of assets on the reporting date in EUR m Fixed assets: + 42 m Investments 126 m of which real estate 51 m 500 Financial assets RZB capital increase 4 m BRB profit particip. rights - 3 m Fund valuation - 3 m Slight increase in fixed assets due to capital expenditure Financial Statements Wolfgang Deml 34

35 Group IFRS: y/y comparison of current assets on the reporting date in EUR m * Current assets: m Inventories + 77 m of which Agriculture: + 52 m (grain, crop protection) of which con.comp.expan*: + 17 m 600 Receivables m of which building materials: + 30 m of which Agri./Agri.Equipm: + 38 m of which con.comp.expan*: + 46 m * Expansion in the group of consolidated companies Grain inventories and year-end business raises working capital Financial Statements Wolfgang Deml 35

36 Group IFRS: y/y comparison of equity in EUR m Equity capital: + 31 million Equity ratio 27.3 % (2005: 28.5 %) Group dividend 16 m of which BayWa AG 9 m Equity funds remain stable Financial Statements Wolfgang Deml 36

37 Group IFRS: y/y comparison of financial liabilities in EUR m Financial liabilities: m Working capital 172 m Invested cash flow 85 m Cash earnings 132 m Operating cash flow finances increase in working capital and investments Financial Statements Wolfgang Deml 37

38 Group IFRS: Investments and personnel in EUR m Investments 127 m Land and property: 77 m Office equipment: 17 m Technical facilities: 28 m Other: 5 m Personnel levels Adjusted for changes to the group of consolidated companies: 15,626 (+ 0.2 %) Investments at a high level personnel levels stable despite brisker business Financial Statements Wolfgang Deml 38

39 Group Cash Flow Key Data Financial Statements Wolfgang Deml 39

40 Cash flow: year-on-year comparison in EUR m % Cash earnings Cash flow from operating activities ,- Cash flow from investment activities ,- Cash flow from financial activities ,- Cash and cash equivalents at the start of the period Cash and cash equivalents at the end of the period , Disinvestments and seasonal effects impact the cash flow Financial Statements Wolfgang Deml 40

41 Highlights 2006 Performance of the segments Group Key Data Outlook for 2007 Share Back Up Contents Wolfgang Deml 41

42 Outlook for 2007 (1) Agriculture Sentiment in the agricultural sector to remain upbeat No extreme weather conditions in 1Q: conditions for equipment and resources business more favourable Higher grain inventories: good selling potential Sales and profit targets exceed 2006 Building Materials Construction stabilises in uptrend according to sectorspecific estimate Milder winter good basis for business in building materials and in retail Expansion strategy to be pursued Accellerated strategic realignment in DIY&GC Sales and profit expected to be higher than 2006 Robust economy is a sound basis for business to develop in 2007 Outlook Wolfgang Deml 42

43 Outlook for 2007 (2) Energy Lower demand for heating oil expected in the first halfyear (milder winter) Economic influence set to keep sales of fuel and diesel stable Boom for alternative fuels to continue Price-induces sales; profit kept at the level of 2006 Difficult environment expected for energy Outlook Wolfgang Deml 43

44 Outlook 2007 (3) BayWa Group 2006 as an exceptional year (weather, VAT) Normal year: adjusted profit 75 million plus X Given favourable conditions (current economic trend holds steady), record year could be exceeded in EUR m Sales Adjusted profit (pre-tax) 85.1 Investments Equity ratio (in %) 27.3 Personnel (number) Profitability set to climb given favourable course of business over the year Outlook Wolfgang Deml 44

45 Consolidated Financial Statements, IFRS Financial Statements at Company Level, German Commercial Code Key Data Participations Outlook for 2007 Share Back Up Contents Wolfgang Deml 45

46 BayWa share price performance 05/05/ /12/ /01/ Share Wolfgang Deml 46

47 Shareholder structure as per 31/12/2006 RWA Deutschland GmbH 10.3 % St. Wolfgang Beteiligung GmbH 11.1 % Bayerische Raiffeisen- Beteiligungs AG 32.3 % Free float 46.3 % Share Wolfgang Deml 47

48 Consolidated Financial Statements, IFRS Financial Statements at Company Level, German Commercial Code Key data Participations Outlook for 2007 Share Back Up Contents Wolfgang Deml 48

49 Share data Securities ID number ISIN SE code Stock market segment Index Number of shares DE BYW6.FSE Reuters Bloomberg Prime Standard SDAX 33.8 million Financial Statements Wolfgang Deml 49

50 Share fact sheet key data Opening price, Frankfurt ( 02/01/06 ) High, Frankfurt ( 05/05/06 ) Low, Frankfurt ( 13/06/06 ) 18,11 Closing price, Frankfurt ( 30/12/06 ) 24,28 Free float market cap. ( 30/12/05 ) Total market cap. ( 30/12/05 ) Total market cap. ( 30/12/06 ) m m m Financial Statements Wolfgang Deml 50

51 Financial Calendar 2007 March /03/2007 BayWa AG Bilanzpressekonferenz, Ergebnis /03/2007 BayWa AG Analysts Conference May /05/2007 BayWa AG Quarterly results: first quarter /05/2007 BayWa AG Conference Call 31/05/2007 BayWa AG Annual General Meeting August /08/2007 BayWa AG Press Conference, results for the first half of /08/2007 BayWa AG Conference Call November /11/2007 BayWa AG Press Conference, quarterly results: third quarter /11/2007 BayWa AG Conference Call Financial Statements Wolfgang Deml 51

52 Investor Relations contact at BayWa AG BayWa AG Investor Relations Andreas Helber Arabellastr München Tel.: +49 (0) Fax: +49 (0) investorrelations@baywa.de Financial Statements Wolfgang Deml 52

53 Disclaimer 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 company should prove to be inaccurate, or should other unforeseeable risks occur, the possibility of the net worth, financial position and earnings situation of the Group diverging negatively from the target figures cited in this presentation should not be discounted. BayWa AG can therefore undertake no guarantee that the actual development of the net worth, financial position and earnings situation of the Group will concur with the target figures described in this presentation. Financial Statements Wolfgang Deml 53