Interim Report as per 30 September 2016 Conference Call

Transcription

1 Interim Report as per 30 September 2016 Conference Call Munich, 10 November 2016 Klaus Josef Lutz, CEO Andreas Helber, CFO

2 Agenda 1. Development of the Group 1-9/ Development of the Segments 1-9/ Outlook for FY November 2016 Page 2

3 Development of the Group 1-9/ November 2016 Page 3

4 Development of the Group 1-9/2016 Revenues and EBIT as against previous year Revenues EUR 11,439.3 m (Δ 15/16: EUR m / +3.1%) Significant increase in sales volume of agricultural products Higher revenues y/y in Building Materials Segment Oil price - induced decline in conventional energy in EUR m 11, % 11, EBIT EUR 85.4 m (Δ 15/16: EUR +2.7 m / +3.3%) Jump in earnings at BayWa r.e. Earnings improvement in building materials business and conventional energy in EUR m Despite strong fruit business, Agriculture Segment reports earnings shortfall due to pressure on margins (trade) and reluctance of farmers to invest (agricultural equipment, inputs) 10 November 2016 Page * +3.3% 85.4 * Figures adjusted mainly for effects from accounting of a finance lease in financial year 2013 and an early adoption of a new IFRS Standard. Details are described in the notes to the consolidated financial statements 2015, note B.7.

5 Development of the Group 1-9/2016 Third quarter comparison of EBIT in EUR m % % -16.4% 30.1 Ø % 15.5 Q Q3 2013* Q3 2014* Q3 2015* Q * Figures adjusted 10 November 2016 Page 5

6 Development of the Segments 1-9/ November 2016 Page 6

7 Agriculture Segment 1-9/2016 Grain Oilseed Seed Fertilisers Crop protection Feedstuff Fruit Agricultural equipment 10 November 2016 Page 7

8 Agriculture Segment 1-9/2016 Market developments: Products Products World grain balance (excluding rice; October 2016) Grain year 2015/16 ends on an above-average level: Global harvest volume just under 2 bn t oil seed harvest almost at record level of 2014/15 In million tons Despite ongoing increase in consumption, grain stocks grow to new record levels worldwide; oil seed inventories virtually stable contrary to expectations Harvest expectations 2016/17 again very high: Global grain production at 2,059 m t (+4%) EU harvest volume at around 306 m t (-1%) Ongoing rainfall in spring and summer reduce grain volumes and quality in 2016, particularly in France and parts of Germany; German harvest of 45.3 million tons expected (-7%) Heterogeneous developments in grain prices (Matif): following spring rally, decline to 160 /t (corn) & 320 /t (soya) in summer; volatile wheat price recently in an uptrend approaching 165 /t Source: USDA; * 2016/17 forecast 10 November 2016 Page 8

9 Agriculture Segment 1-9/2016 Challenges High trading volumes increase volatility World production of corn & soybeans vs. CBOT trade volume Irrational priceextreme development Volatilityof soy meal Soy meal 2016 vs. average prices (day 1 = basis) 2016 Ø 5 years Ø 10 years 11x world production 27x world production 10 November 2016 Page 9

10 Agriculture Segment 1-9/2016 Market developments: Inputs, Fruit, Equipment Input resources Sales decline in fertilisers: standard fertilisation often not applied due to weak economic situation Despite strong decline in fertiliser prices, cautious stocking up so far for the 2016/17 season Crop protection demand in decline as applications being kept to a minimum Seed: preference for using own varieties Fruit NZ Apple harvest at high yearearlier level ( 548,000 t); volume sold likely to set new record (export) EU apple production (-3% y/y) partly hampered by hail and frost; volume growth above all in Poland (+4% y/y) and Germany (+8% y/y) Current marketing season with stable price level for apples Agri-Equipment Planned investment volume of around 2.8 billion at 10-year low (2015: EUR 3.9 billion) New tractor registrations in Germany lower y/y (-2.1%) as of September; months of August & September above 2015 Downtrend likely to have bottomed out: Agriculture industry s economic barometer rises by 5.8 points in September 10 November 2016 Page 10

11 Agriculture Segment 1-9/2016 Revenues and EBIT as against the previous year BAST (BayWa Agri Supply & Trade) BAV (BayWa Agrar Vertrieb) BAST + BAV in EUR m in EUR m 4, , % 6,247.8 Revenues 2,237.0 Revenues Revenues % 33.3 EBIT -6.3 EBIT 16.7 EBIT * Commentary on BAST: Sharp increase in volumes of BAGI companies in grain and oilseed trading (+26% y/y) Irrational price trends (soya, corn) as a result of unprecedented supply & demand situation Increased pressure on margins in agri-products trading Commentary on BAV: Input resources sales down year on year due to significantly lower propensity to invest among farmers Strong drop in fertiliser prices narrows profit margins * Figures adjusted 10 November 2016 Page 11

12 Agriculture Segment 1-9/2016 Revenues and EBIT as against the previous year Agricultural Equipment Fruit in EUR m % In EUR m % Revenues Revenues EBIT 9.7 > -100% -0.7 EBIT % * * Revenues: 15/16 EUR million EBIT: 15/16 EUR million Sales of new and used machinery down as expected, stable service business Market-related sales decline in farm & animal equipment Investments in developing Massey Ferguson distribution burden result Revenues: 15/16 EUR million EBIT: 15/16 EUR million Strong T&G result more than compensates moderate fruit business in Germany TFC Holland not consolidated in the previous year Additional gain through sale of T&G packaging logistics unit (ca 7 million) * Figures adjusted 10 November 2016 Page 12

13 Agriculture Segment 1-9/2016 Key Financials Income Statement Agriculture in EUR m * * * 15/16 (%) Revenues 3, , , , , % EBITDA % % of Revenues 3.1% 1.7% 1.4% 1.4% 1.1% EBIT % % of Revenues 2.1% 1.2% 0.9% 0.8% 0.6% EBT % % of Revenues 1.4% 0.9% 0.4% 0.3% 0.0% * Figures adjusted 10 November 2016 Page 13

14 Energy Segment 1-9/2016 Fuels Heating Oil Lubricants Solid Biofuels BayWa r.e. 10 November 2016 Page 14

15 Energy Segment 1-9/2016 Market developments Renewable Energies Growth shifting towards emerging markets; capital expenditure in the sector below 2015 due to the declining prices of PV components Global wind expansion (onshore) reaches 55 GW in 2016; Germany largest EU market at 4.2 GW Around 72 GW in newly installed solar energy expected in 2016; growth drivers China, India & US Conventional Energy Following a sideward movement in summer, crude oil price exceeded 50 USD/barrel in October Heating oil demand in Germany benefits from consumer-friendly prices; recent increase in heating oil prices to year-earlier level ( 56 Cent/l) Strong domestic economy leads to expected GDP growth of 1.9% in Germany Heating oil prices Germany ( ) Source: TECSON, as of October November 2016 Page 15

16 Energy Segment 1-9/2016 Revenues and EBIT as against previous year Conventional Energy Renewable Energy In EUR m -12.6% In EUR m +1.8% 1, , Revenues Revenues % % 47.0 EBIT EBIT * * Revenues: 15/16 EUR million EBIT: 15/16 EUR +3.3 million Revenue decline y/y due to low oil price Slowing heating oil sales in summer period (-4%); increase in demand for wood pellets (+4%) Fuel volumes marginally higher (2%); lubricants in decline Improved trading margins in fuel business * Figures adjusted Revenues: 15/16 EUR million EBIT: 15/16 EUR million Strong project business in Q3: sale of the Fraisthorpe (UK; 29.7 MW) and Saint Congard (France; 8.2 MW) wind farms; shares in Kirchstockach & Dürrnhaar geothermal power plant sold Takeover of PV distributor Solar Matrix in Australia 10 November 2016 Page 16

17 Energy Segment 1-9/2016 Key Financials Income Statement Energy in EUR m * * * 15/16 (%) Revenues 2, , , , , % EBITDA % % of Revenues 1.8% 1.6% 2.0% 2.6% 4.0% EBIT % % of Revenues 0.9% 0.7% 1.0% 1.5% 2.8% EBT > 100% % of Revenues 0.5% 0.2% 0.5% 1.0% 2.3% * Figures adjusted 10 November 2016 Page 17

18 Building Materials Segment 1-9/2016 Building Materials 10 November 2016 Page 18

19 Building Materials Segment 1-9/2016 Market developments Market trends Ongoing boom since the start of the year in the German construction sector (8.4% revenue increase in H1) Steady improvement in the business climate in the German construction sector: ifo index climbs to new record high in September Along with residential construction (+8%), growth anticipated for commercial construction (+3%) and public-sector construction (+4%) in full year Residential construction boom in the urban centres continues: forecast for completion of more than 270,000 apartments (+9%) in 2016 Increase in order intake from January to June by 18.1% y/y; companies in the sector with 9.4 weeks (Ø) of full capacity utilisation Approvals for roof extensions so far almost 50% higher y/y; new construction up by 30% Sentiment in German Construction Sector Source: ifo-institut; as of September 2016 Construction Industry Assessment present state of business Expectation business development 10 November 2016 Page 19

20 Building Materials Segment 1-9/2016 Revenues and EBIT as against previous year Building Materials Segment in EUR m Revenues: EBIT: +3.8% 1, , % Building Materials Building Materials * Revenues: 15/16 EUR million EBIT: 15/16 EUR +3.4 million Revenue growth due to greater demand for building materials Increase in sales across the whole product range Product range for civil engineering and roadway construction benefits from rising investment in the transport infrastructure Sales growth lifts profit y/y Increase in warehouse and transit business volume; rising transit proportion of bulk building materials Optimisation of location network: operations sold in Offenbach and Murrhardt 10 November 2016 * Figures adjusted Page 20

21 Building Materials Segment 1-9/2016 Key Financials Income Statement Building Materials in EUR m * * * 15/16 (%) Revenues 1, , , , , % EBITDA % % of Revenues 2.9% 1.7% 2.6% 2.3% 2.6% EBIT % % of Revenues 1.8% 0.9% 1.6% 1.4% 1.6% EBT % % of Revenues 1.2% 0.3% 0.7% 0.4% 0.7% * Figures adjusted 10 November 2016 Page 21

22 Outlook for FY November 2016 Page 22

23 Outlook for 2016 AGRICULTURE AGRICU LTURE Market environment remains challenging: low water surcharge, below average prices for agri-products... High grain inventories provide sales potential; strong demand for high-quality wheat Accelerating storage business anticipated for input resources Propensity to invest in agricultural equipment likely to pick up until year-end German apple harvest above year-earlier level; tropical fruit sales likely to benefit from Christmas business EENERGY ENERGY BUILD. MAT. BUIL DING MAT ERIA LS Sale of further solar and wind projects in Germany, France and UK planned in Q4; Creussen wind farm (Bavaria) already sold in October BayWa r.e. benefits from market consolidation in EU solar trade; US activities with sustained growth Acquisition of Solar Matrix: entry into the Australian solar market offers additional profit potential No sustainable recovery in oil prices foreseeable; demand for heating oil likely to increase in winter Stable demand for fuel and lubricants expected due to positive economic development 2016 construction forecast raised: Hauptverband der Deutschen Bauindustrie expects 5.0% revenue increase Government subsidies support positive business expectations in the construction industry Demand for building materials likely to benefit from high sector capacity utilisation in closing quarter Increase in approvals for attic conversions & roof extensions boost sales of the roof product range Business development until year-end also depends on weather conditions 10 November 2016 Page 23

24 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.