Interim Report First Half 2014 Press Conference

Transcription

1 Interim Report First Half 2014 Press Conference Munich, 7 August 2014 Klaus Josef Lutz, CEO Andreas Helber, CFO

2 Agenda 1. Development of the Group in the first half of Development of the Segments in the first half of Outlook for FY August 2014 Page 2

3 Development of the Group First half August 2014 Page 3

4 Development of the Group H1/2014 Summary Revenues in EUR million 8, % 7,691.0 Operating EBIT in EUR million -9.2% H H excl. special effects excl. special effects Highlights Specification of internationalisation strategy for Agriculture: - Apollo acquisition in NZ; earnings contribution following the approval of antitrust authorities (Q3) - BayWa Agrar International B.V. in the Netherlands - Setup up of Risk Governance / IT Restructuring Building Materials: Transfer of NRW & Rhinel.-Palatinate incl. 555 employees in Q2 Group-wide reduction of 750 employees Expansion of solar project business to the USA (acquisition of Martifer Solar USA, Inc.) 7 August 2014 Page 4

5 Development of the Group H1/2014 Revenues and EBIT as against previous year Revenues EUR 7,691.0 m (Δ 13/14: EUR m / -7.0 %) in EUR m 8, % 7,691.0 Price- and volume-induced decline in revenues in Agriculture and conventional Energy Revenue growth of BayWa r.e. H EBIT EUR 62.1 m (Δ 13/14 EUR m / %) in EUR m % H1/2013 includes special effects from the disposal of 3 real estate portfolios Special effects H1/2014: restructuring costs from portfolio streamlining in the Building Materials Segment H August 2014 Page 5

6 Development of the Group H1/2014 Multi-year comparison of EBIT in EUR m 56.2 Other Activities 57.5% 2.7% 72.5% -9.2% Operating result Other Activities H H H H August 2014 Page 6

7 Development of the Group H1/2014 Expansion progress EBIT (in EUR m) BayWa excl. acquisitions BayWa incl. acquisitions % BayWa including companies aquired from 2009 onwards BayWa excluding companies acquired from 2009 onwards 7 August 2014 Page 7

8 Development of the Group H1/2014 Key Financials Income Statement Group in EUR m H H H H /14 (%) Revenues 3, , , , , % EBITDA % % of Revenues 2.8% 3.0% 2.9% 2.6% 1.6% EBIT % % of Revenues 1.5% 1.9% 1.8% 1.9% 0.8% EBT % % of Revenues 1.0% 1.5% 1.2% 1.6% 0.4% Consolidated net income % Share of minority interest % as % of net income 28.8% 24.0% 37.2% 16.9% 49.2% Share of owners of parent company % as % of net income 71.2% 76.0% 62.8% 83.1% 50.8% Earnings per share (EPS) in EUR % 7 August 2014 Page 8

9 Development of the Segments First half August 2014 Page 9

10 Agriculture Segment H1/2014 Seed Fertilisers Crop protection Grain Feedstuff Agricultural equipment Fruit 7 August 2014 Page 10

11 Agriculture Segment H1/2014 Market Developments Market Trends World Grain Balance (July 2014) High forecasts for global grain harvest Grain volume in Germany > 48 MT ( previous year: 47.4 MT) High harvest expectations put producer prices under pressure (wheat price -19 % since April 2014) Another record high anticipated for global oilseed supply 2014/15; downturn in soya prices (-20 % since June 2014) Price declines result in farmers' unwillingness to sell and market the harvest Early start to the season boosts demand for fertilisers and crop protection Tractor registration figures marginally down on previous year's record level (-1.8 %) NZ apple harvest almost repeats good year-earlier volume; expectations of EU fruit higher y/y due to favorable weather in million tons Closing Production Consumption balance *) 2014/15 Forecast Sources: DRV, IGC, Copa, Coceral, ACTI, ZMP, Strategie grains, BayWa 7 August 2014 Page 11

12 Agriculture Segment H1/2014 Revenues and EBIT as against previous year Agricultural Trade In EUR m 4, % 4,367.3 Revenues EBIT % 42.4 H Revenues: 13/14 EUR million EBIT: 13/14 EUR million Volume- and price-induced revenue decline Prices for gene-free soybean meal under pressure Lower trading margins 7 August 2014 Page 12

13 Agriculture Segment H1/2014 Revenues and EBIT as against previous year Agricultural Equipment Fruit In EUR m % in EUR m % Revenues Revenues EBIT % 11.2 EBIT % 12.7 H H Revenues: 13/14 EUR -3.4 million EBIT: 13/14 EUR +1.5 million Revenues at high year-earlier level Used machinery sales growth (+6% y/y) Stable service-business Revenues: 13/14 EUR million EBIT: 13/14 EUR -5.7 million "Enza Foods" restructuring burdens result "FCC" disposal (fruit boxes) not realised Earnings contribution of Apollo Apples Ltd not yet included 7 August 2014 Page 13

14 Agriculture Segment H1/2014 Key Financials Income Statement Agriculture in EUR m H H H H /14 (%) Revenues 1, , , , , % EBITDA % % of Revenues 3.2% 4.0% 3.5% 1.9% 1.7% EBIT % % of Revenues 2.1% 3.2% 2.7% 1.5% 1.3% EBT % % of Revenues 1.4% 2.6% 2.0% 1.2% 0.8% 7 August 2014 Page 14

15 Energy Segment H1/2014 Fuels Heating Oil Lubricants Solid Biofuels BayWa r.e. 7 August 2014 Page 15

16 Energy Segment H1/2014 Market Developments Market Trends Wind farm Brahms (19.8 MW), New Mexico, USA Price niveau for heating oil in 2014 continuously lower y/y Weather-induced modest demand for heating oil and wood pellets Lubricants and fuel sales higher y/y 20 % of global energy consumption already sourced from renewable energies Global record high (approx. 40 GW) in PV installed capacity in 2014 anticipated; China, Japan & UK as drivers Increase in US investment in wind power foreseeable owing to extension of tax credits; in 2014 global installed capacity of 45 GW expected Legislative amendment stabilises general conditions for renewable energies in Germany 7 August 2014 Page 16

17 Energy Segment H1/2014 Revenues and EBIT as against previous year Conventional Energy Renewable Energy In EUR m -12.1% In EUR m +62.3% Revenues 1, ,299.2 Revenues % % 16.8 EBIT 0.7 EBIT H H Revenues: 13/14 EUR million EBIT: 13/14 EUR -4.4 million Downturn in heating business (price- and volume induced) Fuel margins under pressure due to high price volatility Weak performance in Austria Revenues: 13/14 EUR million EBIT: 13/14 EUR +4.2 million Strong expansion of international project business (wind & solar) High competitive pressure in European PV trade; consolidation ongoing Sale of solar park (19.5 MW) and 2 wind farms (38.2 MW) in Q2 7 August 2014 Page 17

18 Energy Segment H1/2014 Key Financials Income Statement Energy in EUR m H H H H /14 (%) Revenues 1, , , , , % EBITDA % % of Revenues 1.7% 0.7% 1.8% 2.0% 2.1% EBIT % % of Revenues 1.2% 0.1% 0.9% 1.1% 1.1% EBT % % of Revenues 1.1% -0.1% 0.5% 0.7% 0.6% 7 August 2014 Page 18

19 Building Materials Segment H1/2014 Building Materials 7 August 2014 Page 19

20 Building Materials Segment H1/2014 Market Developments Market Trends Building Investments in Germany (Δ y/y in %) Mild winter leads to early and dynamic start to the building season Forecast for commercial construction revenues up 1 % to revenue growth of 4.5 % in Residential construction as a growth engine: number of residential building permits in Germany climbs by 8.1 % y/y Economic growth creates more scope for public infrastructure spending Construction investment still favoured by historically low interest rate environment Momentum in the sector likely to slow in summer due to high capacity utilisation since the start of the year and the holiday period 2014* Residential Construction Commercial Construction Public-sector Construction Total Investments Source: ifo Institut; Statistisches Bundesamt, * Forecast (as of June 2014) 7 August 2014 Page 20

21 Building Materials Segment H1/2014 Revenues and EBIT as against previous year Building Materials (H1/2013 adjusted) Building Materials (H1/2013 not adjusted) In EUR m +5.9% In EUR m -5.4% Revenues Revenues > +100% 8.0 > +100% 8.0 EBIT 0.8 EBIT -4.2 H H Revenues: 13/14 EUR million EBIT: 13/14 EUR +7.2 million Figures in H1/2013 adjusted for disposals in NRW & Rhineland-Palatinate Revenues: 13/14 EUR million EBIT: 13/14 EUR million No further burden on the result from loss-making locations in NRW & Rhineland-Palatinate in H1/ Increase in revenues and earnings due to growth in civil engineering and building construction (residential) - Greater demand for higher-margin gardening product portfolio 7 August 2014 Page 21

22 Building Materials Segment H1/2014 Key Financials Income Statement Building Materials in EUR m H H H H * 13/14 (%) Revenues % EBITDA > 100% % of Revenues 2.0% 2.8% 1.7% 0.3% 1.8% EBIT > 100% % of Revenues 0.3% 1.3% 0.5% -0.5% 1.1% EBT > 100% % of Revenues -0.3% 0.7% 0.0% -0.9% 0.6% * 2014 excluding the activities of sold locations in NRW and Rhineland-Palatinate (transfer of ownership in Q2) 7 August 2014 Page 22

23 Other Activities H1/2014 Revenues and EBIT as against previous year In EUR m > +100% 76.4 Revenues 5.1 > -100% 56.2 EBIT H Revenues: 13/14 EUR million EBIT: 13/14 EUR million Revenues include building material activities in the locations in NRW and Rhineland-Palatinate EBIT comprises earnings contributions and disposal-losses from restructuring Building Materials and rental expenses (one-time effect from real estate disposals in H1/2013) 7 August 2014 Page 23

24 Outlook for FY August 2014 Page 24

25 Outlook for FY 2014 AGRICULTURE AGRICU LTURE E ENERGY ENERGY Global harvest forecast underpins expectations of higher grain selling potential Agricultural commodity prices should bottom out in H2; growing willingness to market and buy grain & oilseeds anticipated Fertiliser price trend likely to encourage upfront buying Stable business in agri equipment expected; demand growth in farm/animal equipment Large harvest volumes & good fruit quality in NZ and EU harbours sales opportunities in Asia and North Africa German economic growth boosts fuel and lubricants business Growing demand for sources of heating anticipated in H2 Sale of the 57.4 MW "La Coste" Solar Park in France planned Acquisitions in the USA and Scandinavia strengthen BayWa r.e.'s project pipeline Amendment of Renewable Energies Act stabilises general conditions for renewable energies in Germany Outlook 2014 BUILD. MAT. BUIL DING MAT ERIA LS Good construction activity likely to hold steady through to year end; low interest rate level continues to boost investment in real estate Annual sector forecast revised upwards: 4% increase in revenues (nominal) in 2014 Higher-margin warehouse business often stronger in H2 Several sales campaigns planned in H2 7 August 2014 Page 25

26 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 company should prove to be inaccurate, or should other unforeseeable risks occur, the possibility of the assets, financial position and results of operations of the Group diverging negatively from the target figures cited in this presentation should not be discounted. can therefore undertake no guarantee that the actual development of the net worth, financial position and results of operations of the Group will concur with the target figures described in this presentation.