Interim Report First Half 2014 Conference Call

Transcription

1 Interim Report First Half 2014 Conference Call Munich, Prof. 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 2014 Appendix Page 2

3 Development of the Group First half 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 H excl. special effects H 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.) 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 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 H 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 H 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 H H Page 7

8 Development of the Group H1/2014 Key Financials Income Statement Group in EUR m H 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 % Page 8

9 Development of the Group H1/2014 Key Financials Cash Flow Statement in EUR m H H H H H /14 (%) Cash earnings % Cash flow from operating activities % Cash flow from investing activities > -100% Cash flow from financing activities % Cash & cash equivalents at the start of the period Outflow / Inflow of funds owing to changes in the group of consolidated companies and in exchange rates Cash & cash equivalents at the end of the period % % Page 9

10 Development of the Group H1/2014 Key Financials Balance Sheet in EUR m H H H H FY 2013 H /14 (%) Total assets 3, , , , , , % Equity , , , , , % Equity ratio 31.7% 29.8% 24.8% 22.3% 23.6% 23.4% Non-current assets 1, , , , , , % Current assets 1, , , , , , % Provisions % Financial liabilities , , , , % Page 10

11 Development of the Segments First half 2014 Page 11

12 Agriculture Segment H1/2014 Seed Fertilisers Crop protection Grain Feedstuff Agricultural equipment Fruit Page 12

13 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 balance Production Consumption *) 2014/15 Forecast Sources: DRV, IGC, Copa, Coceral, ACTI, ZMP, Strategie grains, BayWa Page 13

14 Agriculture Segment H1/2014 Revenues and EBIT as against previous year Agricultural Trade In EUR m -10.5% 4, ,367.3 Revenues -28.7% EBIT H 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 Page 14

15 Agriculture Segment H1/2014 Revenues and EBIT as against previous year Agricultural Equipment In EUR m Fruit in EUR m -0.5% % Revenues Revenues +15.5% % EBIT EBIT H H H H Revenues: 13/14 EUR -3.4 million EBIT: 13/14 EUR +1.5 million Revenues: 13/14 EUR million EBIT: 13/14 EUR -5.7 million Revenues at high year-earlier level Used machinery sales growth (+6% y/y) Stable service-business "Enza Foods" restructuring burdens result Earnings contribution of Apollo Apples Ltd not yet included Page 15

16 Agriculture Segment H1/2014 Key Financials Income Statement Agriculture H /14 (%) in EUR m H H H H Revenues 1, , , , , % % 3.2% 4.0% 3.5% 1.9% 1.7% % 3.2% 2.7% 1.5% 1.3% % 2.6% 2.0% 1.2% 0.8% EBITDA % of Revenues EBIT % of Revenues EBT % of Revenues -24.3% -35.9% Page 16

17 Energy Segment H1/2014 Fuels Heating Oil Lubricants Solid Biofuels BayWa r.e. Page 17

18 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 Page 18

19 Energy Segment H1/2014 Revenues and EBIT as against previous year Conventional Energy Renewable Energy In EUR m In EUR m -12.1% 1, % ,299.2 Revenues Revenues +33.3% -86.3% 5.1 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 16.8 EBIT 0.7 H H 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 Page 19

20 Energy Segment H1/2014 Key Financials Income Statement Energy H /14 (%) in EUR m H H H H Revenues 1, , , , , % % 1.7% 0.7% 1.8% 2.0% 2.1% % 0.1% 0.9% 1.1% 1.1% % -0.1% 0.5% 0.7% 0.6% EBITDA % of Revenues EBIT % of Revenues EBT % of Revenues -1.1% -14.5% Page 20

21 Building Materials Segment H1/2014 Building Materials Page 21

22 Building Materials Segment H1/2014 Market Developments Market Trends 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 2014 Residential construction as a growth engine: number of residential building permits in Germany climbs by 8.1 % y/y Building Investments in Germany (Δ y/y in %) Economic growth creates more scope for public infrastructure spending Construction investment still favoured by historically low interest rate environment * Residential Construction Momentum in the sector likely to slow in summer due to high capacity utilisation since the start of the year and the holiday period Commercial Construction 5.1 Public-sector Construction 4.0 Total Investments Source: ifo Institut; Statistisches Bundesamt, * Forecast (as of June 2014) Page 22

23 Building Materials Segment H1/2014 Revenues and EBIT as against previous year Building Materials (H1/2013 adjusted) In EUR m Building Materials (H1/2013 not adjusted) In EUR m +5.9% -5.4% Revenues Revenues > +100% > +100% EBIT EBIT 0.8 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 H H 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 Page 23

24 Building Materials Segment H1/2014 Key Financials Income Statement Building Materials H1 2014* 13/14 (%) in EUR m H H H H Revenues % > 100% 2.0% 2.8% 1.7% 0.3% 1.8% % 1.3% 0.5% -0.5% 1.1% % 0.7% 0.0% -0.9% 0.6% EBITDA % of Revenues EBIT % of Revenues EBT % of Revenues > 100% > 100% * 2014 excluding the activities of sold locations in NRW and Rhineland-Palatinate (transfer of ownership in Q2) Page 24

25 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 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) Page 25

26 Outlook for FY 2014 Page 26

27 Outlook for FY 2014 Outlook 2014 AGRICULTURE AGRICU LTURE E ENERGY ENERGY BUILD. MAT. BUIL DING MAT ERIA LS 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 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 Page 27

28 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.

29 Appendix Page 29

30 Agriculture Segment H1/2014 Market Price Trends Wheat & Corn International Paris, 28/07/2014 Granulated Urea & CAN Baltic Sea Ports, 28/07/2014 /t /t Closing price on 28/07/ Closing price on 28/07/ Closing price on 28/07/2014 Closing price on 28/07/2014 = Wheat Matif, Paris = Granulated Urea, Baltic Sea Ports = Corn Matif, Paris = CAN, Baltic Sea Ports Source: Page 30

31 Agriculture Segment H1/2014 Grain Balance World / Usage in millions of tons 2011/ / / /15* 2,300 2,257 2,454 2, Available 2,761 2,718 2,898 2,946 Consumption 2,300 2,274 2,387 2, Stock / Consumption in % Days - final stock Page 31 Production Opening Balance Closing Balance [in millions of tons: wheat, rice, maize, barley, oats, rye, sorghum] Status: 07/2014; *2014/15 Forecast; figures partly estimated Sources: DRV, ACTI, IGC, BayWa, Copa, Coceral, ZMP, Strategie grains

32 BayWa Share Page 32

33 BayWa Share Share Price Performance Share from 01/07/2013 to 01/08/2014 Closing price on 30/06/ High (06/06/2014) Low (09/10/2013) Closing price on 30/06/ Market Capitalisation in EUR m As per 30/06/2013 1,279.4 As per 30/06/2014 Freefloat Market cap. (30/06/2014) 1, BayWa (Sec. code no ) Page 33

34 BayWa Share Shareholder Structure as per 30/06/2014 BayWa Share Profile (June 2014) Stock Exchanges Frankfurt, Munich, Xetra Bayerische RaiffeisenBeteiligungs AG 34.9% Freefloat 39.9% Segment Official Markt/Prime Standard Stock exch. Index SDAX (Sec. code no and ) ISIN DE und DE Share capital EUR 88,459, Number of Shares 34,554,346 Raiffeisen Agrar Invest GmbH 25.2% Denomination No-par value shares with an arithmetical portion of 2.56 each in the share capital Securitisation In the form of a global certificate deposited with Clearstream Banking AG. Shareholders participate as coowners corresponding to the number of shares held (collective custody account) Page 34

35 Contact and Financial Calendar Financial Calendar 2014/2015 Head of Investor Relations August /08 Press Conference Q2, Munich 07/08 Analysts Conference Call Q2 Josko Radeljic November /11 Analysts Conference Call Q3 Arabellastr Munich January /01 Capital Market Day, Berlin Germany March /03 Annual Results Press Conference, Munich 27/03 Analysts Conference FY 2014, Frankfurt/M. Tel: +49 (0)89 / Fax: +49 (0)89 / investorrelations@baywa.de Page 35