BayWa Group Interim Report as at 30 June 2010 Conference Call, 5 August > Klaus Josef Lutz, Chief Executive Officer

Transcription

1 BayWa Group Interim Report as at 30 June 2010 Conference Call, 5 August 2010 > Klaus Josef Lutz, Chief Executive Officer

2 Market developments in Q2/2010 Agriculture Firmer producer prices (milk and grain) brighten sentiment in the agricultural industry Solid business with subsequent collection and storage of grain; grain selling benefits from strong export business (weak euro) Strong agricultural resources business despite late start to spring Economic barometer for the agriculture industry in an uptrend Building Materials Business climate index (ifo) improved in the building trade Positive stimulus in housing construction (number of building permits on the rise) Seasonal catching-up effects in building materials trading Development of DIY & Garden Centres hampered by cold, wet weather in May Energy Volume-related sales of heating oil significantly lower than a year ago Private household tank filling levels (oil) now below the level customary for the time of the year Economic recovery boosts lubricants business Solar power business accelerates due to cuts in government-backed promotion of solar energy 2

3 Development of the Group 3

4 Revenues and EBIT in Q2/2010 against previous year [in EUR m] 3,000 Revenues 2,138 2,251 EUR 2,251 million ( 10/09: EUR +113 million / +5.3 %) 2,000 Business in agricultural produce and resources firmer 1,000 Strong development in building materials trade Sales level benefits from BayWa r.e. 0 Q Q [in EUR m] 90 EBIT EUR 69.7 million ( 10/09: EUR million / +21.6%) Best quarterly result, apart from exceptional year BayWa r.e. contributes around EUR 8 million to profit Catching up effects typical of the season 0 Q Q

5 Year-on-year (Q2) comparison of EBIT Q2 [EUR m] Ø (Q2; ) =

6 Revenues and EBIT in 1H/2010 against previous year [in EUR m] 4,500 Revenues 3,000 3,716 3,778 EUR 3,778 million ( 10/09: EUR +62 million / +1.7%) Agriculture segment matches previous year s level 1, H/2009 1H/2010 Building Materials and Energy segments achieve significant growth Disposal of car dealer operations (EUR -135 million) [in EUR m] EBIT EUR 56.3 million ( 10/09: EUR +4.0 million / +7.6%) 40 Initial loss of EUR 13 million (Q1) made up by just under EUR 70 million in Q H/2009 1H/2010 6

7 Year-on-year comparison in EUR m 1H/2007 1H/2008 1H/2009 1H/ /09 (%) Revenues 3, , , , % 1.7% EBITDA % % of revenues 3.1% 3.5% 2.7% 2.8% EBIT % % of revenues 1.8% 2.5% 1.4% 1.5% EBT % % of revenues 1.1% 1.8% 0.8% 0.9% Consolidated net income % Tax rate 18.6% 22.1% 23.0% 21.7% Share of minority interest % as % of net income 38.6% 24.6% 35.3% 28.8% Share of owners of parent company % as % of net income 61.8% 75.4% 64.7% 71.2% Earnings per share (EPS) in EUR % 7

8 Cash flow statement in EUR m 1H/2009 1H/ /09 (%) Cash earnings % Cash flow from operating activities % 2% Cash flow from investing activities % Cash flow from financing activities % Cash & cash equivalents at the startoftheperiod the % Cash & cash equivalents at the end of the period % 8

9 Development of the Segments 9

10 BayWa Agriculture Seeds Fertilisers Crop protection Grain Feedstuff Fruit Agricultural equipment 10

11 Development in 1H/2010 Development of operating resources High demand for fertilisers at lower price levels Stable development in demand for seed and crop protection Development of agricultural produce From spring onwards, slight uptrend in grain prices Very good grain export business favoured by the weak euro Sound business in subsequent collection/storage of grain Grain speculation increases at the end of Q2 due to dry weather Development of agricultural equipment New orders above previous year s level (tractors) Above average demand for yard and barn equipment and facilities 11

12 Revenues and EBIT in 1H/2010 against previous year [in EUR m] 2,250 1,500 1,800 1,742 1,382 1,335 Revenues Agriculture 10/09: EUR -47 million (-3.4%) Agr. Equipmt 10/09: EUR -9 million (-2.2%) 750 Agri. Equip. Agri. Sale of agricultural resources stable at a low price level Grain sales volume lower y/y yy H/2009 1H/2010 Agricultural Equipment: new order settled in H2 [in EUR m] EBIT Agriculture 10/09: EUR +8.2 million (+31.3%) Agr. Equipmt 10/09: EUR -3.4 million (-42.5%) H/2009 1H/2010 Agri. Equip. Agri. Problem of fertilisers in 2009 no longer applies - increase in profit Good grain export business Agricultural equipment subject to distortion effects in 2Q 12

13 Year-on-year comparison in EUR m 1H/2007 1H/2008 1H/2009 1H/ /09 (%) Revenues 1, , , , % EBITDA % 9.3% % of revenues 3.8% 4.7% 3.0% 3.4% EBIT % % of revenues 2.6% 3.8% 1.9% 2.2% EBT % % of revenues 1.7% 3.0% 1.1% 1.5% 13

14 Price trend market prices Wheat B-wheat, Hamburg, 02/08/2010 * * *closing price 14

15 Grain Balance - World [in million t, wheat, rice, corn, barley, oat, rye, sorghum] Szenario 2015/16 *10/11 09/10 08/09 07/08 06/07 05/06 04/05 03/04 Production Produktion Level Anfangsbestand at start of period Available Verfügbar Consumption Verbrauch Level Endbestand at end of Period Inventory Bestände level./../. Verbrauch consumption in % in % Reichweite Endbestand Reach at end of period in days in Tagen /2010; *2010/11 prognosis; Values partly estimated Source: DRV, ACTI Schumacher, h DOWJones, BayWa 15

16 Price trend market prices Urea Granulated urea ex Baltic Sea Ports, 22/07/2010 CAN Calcium ammonium nitrate ex Baltic Sea Ports, 22/07/2010 * * *closing price *closing price 16

17 BayWa Building Materials Building Materials DIY & Garden Centres 17

18 Development in 1H/2010 Development of Building Materials Delayed start to the season due to long winter with heavy snowfall Modernisation and refurbishment activities in housing construction gaining momentum Development of logistics services for third parties better than a year ago Development of DIY and Garden Centres Product mix having positive effect Renovated markets of Illertissen and Grafenau off to a good start Garden business suffers from cool spring 18

19 Revenues and EBIT in 1H/2010 against previous year [in EUR m] Building Materials [in EUR m] DIY & GC H/2009 1H/ Build. Mat. DIY & GC Build.Mat.segment Revenues Building Materials 10/09: EUR +37 million (+6.7%) Increase in logistics services for third parties and trading in solar components DIY & Garden Centres 10/09: EUR +14 million (+5.3%) Revenues growth through larger retail space and optimised product mix EBIT Building Materials 10/09: EUR +3.4 million (+36.2%) Result negative due to long winter, especially in North Rhine- Westphalia, but higher year on year DIY & Garden Centres 10/09: EUR -3.0 million (-27.5%) H/2009 1H/2010 Result burdened due to start-up costs for new centres and bad May weather - 1 1H/2009 1H/

20 Year-on-year comparison in EUR m 1H/2007 1H/2008 1H/2009 1H/ /09 (%) Revenues % EBITDA % % of revenues 2.9% 2.9% 2.3% 1.9% EBIT % % of revenues 11% 1.1% 11% 1.1% 02% 0.2% 02% 0.2% EBT % % of revenues 0.2% 0.2% -0.5% -0.4% 20

21 BayWa Energy Fuel Heating oil Lubricants Solid biofuels BayWa r.e 21

22 Development in 1H/2010 Development of energy (conventional) Fuel: private household tank filling levels now below the average customary for this time of the year Mineral oil: development of margins still stable Development of lubricants business above previous year due to economic influences Development of BayWa r.e BayWa r.e s strategy paying off Solar power business accelerates due to cuts in government-backed promotion of solar energy at mid-year Sale of La Benate Wind Park in France Tender for Spain s largest and most powerful rooftop solar power plant (Barcelona harbour) 22

23 Revenues and EBIT in 1H/2010 against previous year [in EUR m] , renewable Energies Energy Revenues Energy (conventional) 10/09: EUR +58 million (+6.5%) Price-induced increase in revenues in conventional trading BayWa r.e: EUR +149 million Solar power boom due to lowering of feed-in tariffs at mid- 0 year drives BayWa r.e s business 1H/2009 1H/2010 [in EUR m] H/2009 1H/2010 renewable Energies Energy EBIT Energy (conventional) 10/09: EUR million (-84.7%) Decline is volume induced; lack of demand for heating oil due to households covering their requirements in 2009 at low prices BayWa r.e: EUR +9.3 million MHH Solartechnik s contribution to profit approx. EUR 8 million 23

24 Year-on-year comparison in EUR m 1H/2007 1H/2008 1H/2009 1H/ /09 (%) Revenues , , % EBITDA % % of revenues 0.6% 0.9% 2.0% 1.6% EBIT % % of revenues 01% 0.1% 05% 0.5% 15% 1.5% 10% 1.0% EBT % % of revenues 0.1% 0.5% 1.5% 0.9% 24

25 BayWa Other Activities Food production 25

26 Revenues and EBIT in 1H/2010 against previous year [in EUR m] 300 Revenues 224 Ybbstaler: EUR 51 million H/2009 1H/2010 Frisch & Frost: EUR 34 million 10/09: EUR -139 million (-62.1%) Revenues decline owing to disposal of car dealer operations as from 01/10/2009 [in EUR m] 6 EBIT /09: EUR +1.2 million (+42.9%) Slight improvement in profit due to cost reductions 2 0 1H/2009 1H/

27 Year-on-year comparison in EUR m 1H/2007 1H/2008 1H/2009 1H/ /09 (%) Revenues % EBITDA % % of revenues 9.0% 6.1% 4.1% 14.0% EBIT % % of revenues 59% 5.9% 37% 3.7% 13% 1.3% 47% 4.7% EBT % % of revenues 4.8% 2.5% 0.7% 3.8% 27

28 Outlook in 2010 BayWa Agriculture Expectations for grain harvest: DRV (Deutscher Raiffeisenverband) lowers its harvest estimates following the heatwave (-11 percent year on year) Operating resources: better business expected as against previous year Agricultural equipment: high order intake in the 1H/2010 should result in an increase in revenues and profit in 2H Agribusiness performs better than expected as compared with the year-earlier period BayWa Building Materials Building materials: increase in residential construction expected; renovation, modernisation and refurbishment likely to continue to benefit Stimulus for commercial construction weak DIY&GC: ongoing optimisation of product mix and centres; consumer behaviour difficult to predict owing to ongoing economic crisis still influenced by difficult environment; improvement in profit nonetheless anticipated BayWa Energy Fuel: long winter in 2010 encouraged consumption favourable impact on order patterns of customers in subsequent quarters Further cuts to feed-tariffs under the German Renewable Energies Act (EEG) will provide impetus for solar power business before year-end Completion and sale of projects (i.e. plants) planned for 2H BayWa r.e EBIT guidance for EUR 20 million on track 28

29 29 The BayWa Share

30 BayWa Share Share price performance from 30/06/2009 till 30/06/2010 [In EUR] 35 BayWa registered share Share 30 Closing price on 30/06/ High (26/04/2010) Low (21/07/2009) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Closing price on 30/06/ Market capitalisation in m EUR As per 30/06/ As per 30/06/ Free float Market Cap. (30/06/2010)

31 BayWa Share 2010 Shareholder structure as per 30/06/2010 More information on the BayWa share and share capital June 2010 Raiffeisen Agrar Invest GmbH Stock exchanges Segment Frankfurt, Munich, Xetra Official Market/Prime Standard Free float Stock exch. index MDAX (Sec. code no ) ISIN DE Share capital EUR 87,307, Number of shares 34,104, Bayerische Raiffeisen Beteiligungs AG Denomination Securitisation No-par value shares with an arithmetical portion of EUR 2.56 each in the share capital In the form of a global certificate deposited with Clearstream Banking AG. Shareholders participate as co-owners corresponding to the number of shares held (collective custody account) 31

32 Financial Calendar 2010 March /03 BayWa AG Annual Results Press Conference April /04 Frankfurt a.m. Analysts Conference May /05 BayWa AG Press Release Q1 07/05 BayWa AG Analysts Conference Call Q1 June /06 ICM, München Annual General Meeting of Shareholders August /08 BayWa AG Press Conference, Half-yearly Results 05/08 BayWa AG Analysts Conference Call September /09 BayWa AG BayWa Capital Market Day November /11 BayWa AG Press Conference Q3 11/11 BayWa AG Analysts Conference Call Q3 32

33 Investor Relations contact Investor Relations Manager Josko Radeljic Arabellastr. 4 D München Phone: 0049 / 89 / Fax: 0049 / 89 / investorrelations@baywa.de 33

34 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 assets, financial position and results of operations 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 results of operations of the Group will concur with the target figures described in this presentation 34