Interim Report as per 30 September 2016 Conference Call

Transcription

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

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

3 Development of the Group 1-9/2016 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) * +3.3% * 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. Page 4

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

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

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

8 Agriculture Segment 1-9/2016 Market developments: Products Products 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 World grain balance (excluding rice; October 2016) 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 Page 8

9 Agriculture Segment 1-9/2016 Challenges High trading volumes increase volatility Extreme Volatilityof soy meal Irrational price development World production of corn & soybeans vs. CBOT trade volume Soy meal 2016 vs. average prices (day 1 = basis) 2016 Ø 5 years Ø 10 years 11x world production 27x world production 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 Fruit Agri-Equipment NZ Apple harvest at high yearearlier level ( 548,000 t); volume sold likely to set new record (export) Planned investment volume of around 2.8 billion at 10-year low (2015: EUR 3.9 billion) Crop protection demand in decline as applications being kept to a minimum 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) Seed: preference for using own varieties Current marketing season with stable price level for apples 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 Page 10

11 Agriculture Segment 1-9/2016 Revenues and EBIT as against the previous year BAST BAV (BayWa Agri Supply & Trade) (BayWa Agrar Vertrieb) in EUR m BAST + BAV in EUR m +8.4% 6, , ,237.0 Revenues 6,247.8 Revenues Revenues % 16.7 EBIT EBIT 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 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 +5.7% -5.8% Revenues Revenues > -100% +65.4% EBIT EBIT * * Revenues: 15/16 EUR million EBIT: 15/16 EUR million Revenues: 15/16 EUR million EBIT: 15/16 EUR million Strong T&G result more than compensates moderate Sales of new and used machinery down as expected, fruit business in Germany stable service business Market-related sales decline in farm & animal equipment TFC Holland not consolidated in the previous year Investments in developing Massey Ferguson distribution Additional gain through sale of T&G packaging logistics unit (ca 7 million) burden result * Figures adjusted Page 12

13 Agriculture Segment 1-9/2016 Key Financials Income Statement Agriculture /16 (%) in EUR m * * * Revenues 3, , , , , % EBITDA % % of Revenues 3.1% 1.7% 1.4% 1.4% 1.1% % 1.2% 0.9% 0.8% 0.6% % 0.9% 0.4% 0.3% 0.0% EBIT % of Revenues EBT % of Revenues -29.9% -86.0% * Figures adjusted Page 13

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

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

16 Energy Segment 1-9/2016 Revenues and EBIT as against previous year Conventional Energy In EUR m Renewable Energy In EUR m -12.6% 1, ,479.1 Revenues +1.8% Revenues +83.6% +44.6% EBIT EBIT * * Revenues: 15/16 EUR million Revenues: 15/16 EUR million EBIT: 15/16 EUR million EBIT: 15/16 EUR +3.3 million Strong project business in Q3: Revenue decline y/y due to low oil price sale of the Fraisthorpe (UK; 29.7 MW) and Saint Congard Slowing heating oil sales in summer period (-4%); (France; 8.2 MW) wind farms; shares in Kirchstockach & increase in demand for wood pellets (+4%) Dürrnhaar geothermal power plant sold Fuel volumes marginally higher (2%); lubricants in Takeover of PV distributor Solar Matrix in Australia decline * Figures adjusted Improved trading margins in fuel business Page 16

17 Energy Segment 1-9/2016 Key Financials Income Statement Energy /16 (%) in EUR m * * * Revenues 2, , , , , % % 1.8% 1.6% 2.0% 2.6% 4.0% % 0.7% 1.0% 1.5% 2.8% % 0.2% 0.5% 1.0% 2.3% EBITDA % of Revenues EBIT % of Revenues EBT % of Revenues 74.3% > 100% * Figures adjusted Page 17

18 Building Materials Segment 1-9/2016 Building Materials 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 Sentiment in German Construction Sector Construction Industry Assessment present state of business Residential construction boom in the urban centres continues: forecast for completion of more than 270,000 apartments (+9%) in 2016 Expectation business development 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% Source: ifo-institut; as of September 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 * Figures adjusted Page 20

21 Building Materials Segment 1-9/2016 Key Financials Income Statement Building Materials /16 (%) in EUR m * * * Revenues 1, , , , , % % 2.9% 1.7% 2.6% 2.3% 2.6% % 0.9% 1.6% 1.4% 1.6% % 0.3% 0.7% 0.4% 0.7% EBITDA % of Revenues EBIT % of Revenues EBT % of Revenues 22.1% 71.7% * Figures adjusted Page 21

22 Digital Farming Segment 1-9/2016 Revenues and EBIT as against the previous year Digital Farming in EUR m 4.4 Revenues EBIT Revenues from activities by FarmFacts GmbH and its subsidiaries (software licensing fees etc.) Investments in new generation of products (Next Farming) result in R&D costs Page 22

23 Group Financials 1-9/2016 Page 23

24 Other Activities 1-9/2016 Revenues and EBIT as against previous year In EUR m -6.0% Revenues +0.3% EBIT * Revenues: 15/16 EUR -0.6 m EBIT: 15/16 EUR +0.1 m EBIT consists of non-core activities, overhead costs and consolidation effects Stable development y/y * Figures adjusted Page 24

25 Group Financials 1-9/2016 Key Financials Income Statement in EUR m Revenues * * * /16 (%) 7, , , , , % EBITDA % % of Revenues 2.7% 1.5% 1.6% 1.6% 1.5% EBIT % of Revenues 1.6% 0.8% 0.7% 0.7% 0.7% % 0.4% 0.3% 0.3% 0.3% Consolidated net income % Share of minority interest % 34.8% 56.0% 67.0% 58.9% 72.4% % 44.0% 33.0% 41.1% 27.6% EBT % of Revenues as % of net income Share of owners of parent company as % of net income Earnings per share (EPS) in EUR 3.3% 0.6% -32.4% -31.0% * Figures adjusted Page 25

26 Group Financials 1-9/2016 Key Financials Cash Flow Statement in EUR m * * * /16 (%) Cash earnings % Cash flow from operating activities > 100% Cash flow from investing activities % Cash flow from financing activities > -100% 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 * Figures adjusted Page 26

27 Group Financials 1-9/2016 Key Financials Balance Sheet in EUR m * * * FY /16 (%) Total assets 4, , , , , , % Equity 1, , , , , , % 23.5% 19.7% 18.3% 16.6% 17.8% 16.3% Equity ratio in EUR m * * * FY /16 (%) Non-current assets 2, , , , , , % Current assets 2, , , , , , % Provisions % Non-current financial liabilities , , , % 1, , , , , , % Current financial liabilities * Figures adjusted Page 27

28 Outlook for FY 2016 Page 28

29 Outlook for 2016 AGRICULTURE AGRICU LTURE E ENERGY ENERGY BUILD. MAT. BUIL DING MAT ERIA LS 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 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 Page 29

30 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.

31 Appendix Page 31

32 BayWa Share Shareholder Structure as per 30/09/2016 Bayerische RaiffeisenBeteiligungs AG 35.2% Freefloat 39.5% BayWa Share Profile (September 2016) Stock Exchanges Frankfurt, Munich, Xetra Segment Official Market/Prime Standard Stock exch. Index SDAX (Sec. code no and ) ISIN DE und DE Share capital EUR 89,046, Number of Shares 34,783,980 Raiffeisen Agrar Invest GmbH 25.3% 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 32

33 BayWa Share Share Price Performance Share From 01/01/2015 to 20/10/2016 BayWa (Sec. code no ) Closing Price on 30/09/ High (09/10/2015) Low (28/06/2016) Closing Price on 30/09/ Market Capitalisation in EUR m As per 30/09/2015 1,006.7 As per 30/09/2016 Freefloat Market cap. (30/09/2016) 1, Page 33

34 Contact and Financial Calendar Financial Calendar 2016/17 November 2016 Head of Investor Relations Josko Radeljic 10/11 Analysts` Conference Call Q3 March 2017 St.-Martin-Str /03 Annual Results Press Conference, Munich Munich 31/03 Analysts Conference, Frankfurt a.m. Germany May /05 Analysts Conference Call Q1 23/05 Annual General Meeting, ICM Munich Tel: +49 (0)89 / Fax: +49 (0)89 / investorrelations@baywa.de Page 34