Quarterly Financial Statements as per 30 September 2017 Conference Call

Transcription

1 Quarterly Financial Statements as per 30 September 2017 Conference Call Munich, 9 November 2017 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 2017 Appendix 9 November 2017 Page 2

3 Development of the Group 1-9/ November 2017 Page 3

4 Development of the Group 1-9/2017 Summary Revenues in EUR m EBIT in EUR m 11, % 11, % Overview Increase in revenues and earnings in all the three operating core segments of Agriculture, Energy and Building Materials Agricultural Equipment benefits from farmers greater willingness to invest Acquisition of wind project developer Future Energy in Australia Takeover of 51% in Landhandel Knaup GmbH, Borchen-Alfen Acquisition of a majority holding in Vista GmbH, a service developer for satellite applications Successful issuance of a EUR 300 million hybrid bond 9 November 2017 Page 4

5 Development of the Segments 1-9/ November 2017 Page 5

6 Agriculture Segment 1-9/2017 Agri-Trading Fruit Equipment 9 November 2017 Page 6

7 Agriculture Segment 1-9/2017 Market developments: Soft commodities Soft Commodities World grain balance (excluding rice; October 2017) Forecast for the global grain harvest in 2017/18: Global grain production over 2.0 bn tons (-2% y/y) Wheat and maize at year-earlier level: 751 m tons and 1.0 bn tons respectively EU grain harvest unchanged at around 300 m tons Grain harvest in Germany constant at 45.3 m tons In million tons Inventory change Production Consumption MATIF grain prices under pressure until the end of August due to large harvests from the Black Sea region and the high euro exchange rate; as from September, price uptrend (at the end of Sep., wheat at 166 EUR/t and maize at EUR/t) Due to the global price pressure, import duties of 5.61 EUR/t levied on maize imports (also rye and sorghum) into the EU since the start of August Global oilseed harvest 2017/18 forecast at ca 750 m tons (+1.2% y/y), of which about 500 m tons from soya Soy meal price (CBoT) reached 350 EUR/t in August; since then decline to currently around 320 EUR/t Source: USDA; *2017/18 forecast 9 November 2017 Page 7

8 Agriculture Segment 1-9/2017 Market developments: Inputs, Fruit, Equipment Input Resources Fertiliser prices on the rise since September due to the limited availability of urea and increase in global demand Price increase causes slowdown in interest in buying fertiliser Due to the weather, the autumn sowing season began around two weeks later than in 2016: demand for crop protection and seed so far lower y/y Fruit Frost damages cause poorest EU apple harvest since 10 years: 9.3 m tons (-21% y/y) German apple production of 555 ktons (-46%) in strong downtrend; region of Lake Constance suffers sharp decline to 86 ktons (-75% y/y) Price increases due to poor harvest: average apple prices up 30% in September compared with 5-year av. NZ apple harvest 2017 anticipated almost at year-earlier level (540 ktons) despite delay Agri-Equipment Agriculture industry's economic barometer dropped slightly in Q3 to spring s level (-4.8 pt), but still significantly higher year on year New registrations of tractors from Jan. to Sep. still below year-earlier figures (-6.4% y/y) in Germany; purchase stimulus anticipated from Agritechnica According to VDMA, industry sales 2017 in Germany forecast at EUR 7.5 bn (+4% y/y) 9 November 2017 Page 8

9 Agriculture Segment 1-9/2017 Revenues and EBIT as against previous year Agricultural Trade In EUR m 6, % 6,626.8 Revenues EBIT % Revenues: 16/17 EUR million EBIT: 16/17 EUR +4.2 million Decline in the trading volume of grain & oilseed (-3% y/y) due to restructuring in Italy & Romania Strong euro exchange rate weakens demand from abroad Substantial improvement in operating performance despite restructuring costs (ca EUR 8 million) Input resources business at normal levels 9 November 2017 Page 9

10 Agriculture Segment 1-9/2017 Revenues and EBIT as against the previous year Agricultural Equipment Fruit in EUR m % 1,026.8 in EUR m % Revenues Revenues >+100% 12.6 EBIT % 22.4 EBIT Revenues: 16/17 EUR million EBIT: 16/17 EUR million Volume-induced increase in sales and earnings: sales of new machinery (+5%) and used machinery (+20%) higher y/y Service business significantly higher y/y Result benefits from reduction in inventories Revenues: 16/17 EUR million EBIT: 16/17 EUR million Revenues higher y/y due to the first- time full year consolidation of TFC and increase in apple prices One-off earnings (EUR 7 million) in T&G s 2016 result Selling of niche products (grapes, asparagus and blueberries) difficult due to poor quality 9 November 2017 Page 10

11 Agriculture Segment 1-9/2017 Key Financials Income Statement Agriculture in EUR m * * * /17 (%) Revenues 8, , , , , % EBITDA % % of Revenues 1.7% 1.4% 1.4% 1.1% 1.1% EBIT % % of Revenues 1.2% 0.9% 0.8% 0.6% 0.6% EBT > 100% % of Revenues 0.9% 0.4% 0.3% 0.0% 0.1% * Excluding former business unit Digital Farming 9 November 2017 Page 11

12 Energy Segment 1-9/2017 Fuels Heating Oil Lubricants Solid Biofuels BayWa r.e. 9 November 2017 Page 12

13 Energy Segment 1-9/2017 Market developments Renewable Energy Conventional Energy Global installation of wind anticipated at 54 GW in 2017, unchanged y/y: shift in growth in the direction of emerging markets; Germany benefits from transition effect in a volume of 2.3 GW in H1 (+11%) Solar energy 2017: forecast for ca 80 GW of new installations (+7% y/y) worldwide; along with China, US, India and Germany reports growth: installations of 1.1 GW from Jan. to July (+78% y/y) Significant increase in oil prices in Q3 to 26-month high of USD 57 at the end of Sep. per barrel (hurricane damage, etc.) Demand for heating oil higher year-on-year despite rising prices (currently at almost EUR 0.60 per litre) in the summer months Positive economic trend suggests GDP growth of 2.0% in Germany Heating oil prices Germany ( ) Source: TECSON, as of October November 2017 Page 13

14 Energy Segment 1-9/2017 Revenues and EBIT as against previous year Renewable Energy Conventional Energy in EUR m Revenues % In EUR m Revenues +12.0% 1, , % % 13.1 EBIT EBIT Revenues: 16/17 EUR million EBIT: 16/17 EUR +2.9 million Global expansion of the service business and trading with PV components (sales growth of around 60% y/y) Increase in profit through higher number of project sales: Sale of 6 wind farms (ca 155 MW) and 5 solar farms (ca 134 MW) Disposal of the Dessau (3.5 MW) and Pessin (3.1 MW) bio methane plants Revenues: 16/17 EUR million EBIT: 16/17 EUR +2.4 million Price- and volume-induced increase in revenues Increase in fuel (+1% y/y) and lubricants (+8% y/y) volumes Strong heating business: Positive sales trend in heating oil (+4% y/y) and wood pellets (+20% y/y) 9 November 2017 Page 14

15 Energy Segment 1-9/2017 Key Financials Income Statement Energy in EUR m /17 (%) Revenues 2, , , , , % EBITDA % % of Revenues 1.6% 2.0% 2.6% 4.0% 3.5% EBIT % % of Revenues 0.7% 1.0% 1.5% 2.8% 2.5% EBT % % of Revenues 0.2% 0.5% 1.0% 2.3% 1.9% 9 November 2017 Page 15

16 Building Materials Segment 1-9/2017 Building Materials 9 November 2017 Page 16

17 Building Materials Segment 1-9/2017 Market developments Market trends Sentiment in German Construction Sector Sustained boom in the German construction sector (10.4% increase in revenues from Jan.-July 2017) Steady improvement in the business climate in the construction industry: info-index rises to new record level in September Residential construction boom in urban areas ongoing: forecast for completion of more than 320,000 homes (+15% y/y) in 2017 Along with residential construction (+7.5%), commercial construction (+4%) and public-sector building (+6%) with anticipated revenue growth in the full year Increase of 5.8% in new orders from January to July compared with 2016; Ø full capacity utilisation of companies in the industry for 3.9 months Rising construction costs: construction price of conventional residential building up 3.1% y/y Ifo Index Construction Industry Assessment present business Expectation business development Average of current and expectation Source: ifo-institut; as of April November 2017 Page 17

18 Building Materials Segment 1-9/2017 Revenues and EBIT as against previous year Building Materials Segment in EUR m Revenues: EBIT: +4.3% 1, , % Building Materials Building Materials Revenues: 16/17 EUR million Strong building materials demand due to ongoing construction boom Sales growth across the entire product range No reduction in volumes as is typical of the summer months EBIT: 16/17 EUR +2.7 million Volume-induced increase in profit y/y Slight improvement in margins y/y (pricing measures) 9 November 2017 Page 18

19 Building Materials Segment 1-9/2017 Key Financials Income Statement Building Materials in EUR m /17 (%) Revenues 1, , , , % EBITDA % % of Revenues 1.7% 2.6% 2.3% 2.6% 2.7% EBIT % % of Revenues 0.9% 1.6% 1.4% 1.6% 1.8% EBT % % of Revenues 0.3% 0.7% 0.4% 0.7% 1.0% 9 November 2017 Page 19

20 Innovation & Digitalisation Segment 1-9/2017 Revenues and EBIT as against previous year Innovation & Digitalisation in EUR m +9.8% Revenues % EBIT * Revenues: 16/17 EUR +0.4 million EBIT: 16/17 EUR -1.7 million Increase in revenues through expanding FarmFacts sales operations Higher investments in new NEXT Farming product generation causes R&D costs to rise * Figures of former business unit Digital Farming 9 November 2017 Page 20

21 Group Financials 1-9/ November 2017 Page 21

22 Other Activities 1-9/2017 Revenues and EBIT as against previous year In EUR m -0.4% Revenues % EBIT Revenues: 16/17 EUR million EBIT: 16/17 EUR -5.9 million EBIT consists of overhead costs and consolidation effects Decline in the results due to postponing effects 9 November 2017 Page 22

23 Development of the Group 1-9/2017 Key Financials Income Statement in EUR m /17 (%) Revenues 12, , , , , % EBITDA % % of Revenues 1.5% 1.6% 1.6% 1.5% 1.6% EBIT % % of Revenues 0.8% 0.7% 0.7% 0.7% 0.8% EBT % % of Revenues 0.4% 0.3% 0.3% 0.3% 0.3% Consolidated net income % Share of minority interest % as % of net income 56.0% 67.0% 58.9% 72.4% 72.1% Share of owners of parent company % as % of net income 44.0% 33.0% 41.1% 27.6% 27.9% Earnings per share (EPS) in EUR % 9 November 2017 Page 23

24 Development of the Group 1-9/2017 Key Financials Balance Sheet in EUR m GJ /17 (%) Total assets 5, , , , , , % Equity 1, , , , , , % Equity ratio 19.7% 18.3% 16.6% 16.3% 17.0% 15.9% Equity ratio adjusted* 22.3% 23,7% 20,4% 19.5% 20.8% 19.4% in EUR m GJ /17 (%) Non-current assets 2, , , , , , % Current assets 3, , , , , , % Provisions % Non-current financial liabilities , , , , % Current financial liabilities 1, , , , , , % * Adjusted for the reserve formed for actuarial profits and losses 9 November 2017 Page 24

25 Outlook for FY November 2017 Page 25

26 Outlook 2017 Agriculture Segment AGRICU LTURE Current destocking of grain is expected to increase its market potential and export demand in the coming months BAST restructuring measures implemented; positive development of the functional trading business (soya, specialities) Delay in fertiliser and crop protection application in Q4 due to late autumn sowing season Agritechnica (November), the industry s leading trade fair, likely to strengthen demand for agricultural equipment BUIL Fruit business affected by harvest shortfalls and poorer quality; apple prices expected to rise further DING MAT ERIA 9 November 2017 LS Page 26

27 Outlook 2017 Energy Segment AGRICU LTURE Output sold in 2017 will significantly exceed (>300 MW) the year-earlier figure of 215 MW (wind, solar); margin pressure due to fiercer competition in the domestic and international project business Acquisition of wind project developer Future Energy: expansion of the project portfolio in Australia offers additional profit potential Further expansion of trading in PV components and the global service business for wind & solar farms (tender of over 153 MW won in the UK) Higher crude oil prices predicted y/y; rising demand for heating oil anticipated in the winter months Fuel and lubricants demand should remain at high level due to economic growth in Germany 9 November 2017 Page 27

28 Outlook 2017 Building Materials Segment AGRICU LTURE Strong construction activity: revenues expected to rise by 6% in the German construction industry in 2017 Trend towards prefabrication raises demand for building components and prefabricated parts Increase in contract business due to higher levels of capacity utilisation in the sector (framework agreement for construction projects) Additional value added potential through expanding online offerings (BayWa Bau-Cockpit, Mr & Mrs Homes housing configurator) Demand for building materials should benefit from the high order backlog of construction companies in the final quarter BUIL DING Revenue & profit growth: volume-induced earnings increase likely to continue until the end of the year MAT ERIA 9 November 2017 LS Page 28

29 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.

30 Appendix 9 November 2017 Page 30

31 Hybrid Bond On 4 October 2017, BayWa placed its first hybrid bond in a volume of EUR 300 million. Further Information Issuer Proceeds from the issue will be used, among other purposes, for the refinancing of liabilities as well as to strengthen the equity base and diversify the financial portfolio. The bond is listed on the Luxembourg Stock Exchange and traded on all German stock exchanges. Volume in EUR m 300 Denomination Issue price (%) 99,449 Term (years) No maturity date Issue date 11/10/2017 Expiry date n/a Rate of interest (%) 4,25 p.a. Interest payment date WKN ISIN Stock exchange listing Stock exchange trading A2GSM1 XS Luxembourg All German stock exchanges 9 November 2017 Page 31

32 Agriculture Segment 1-9/2017 Market Price Trends Wheat & Corn International Paris, 20/10/2017 /t Granulated Urea & CAN Baltic Sea Ports, 20/10/2017 /t Closing price as of 20/10/ closing price as of 20/10/ Closing price as of 20/10/ Closing price as of 2/10/2017 = Wheat Matif, Paris = Corn Matif, Paris = Granulated Urea, Baltic Sea Ports = CAN, Baltic Sea Ports Source:: 9 November 2017 Page 32

33 BayWa Share 9 November 2017 Page 33

34 BayWa Share Shareholder Structure as per 30/09/2017 BayWa Share Profile (September 2017) Bayerische Raiffeisen- Beteiligungs AG 34.99% Raiffeisen Agrar Invest GmbH 25.09% Freefloat 39.92% Stock Exchanges Frankfurt, Munich, Xetra Segment Official Market/Prime Standard Sec. code no and ISIN DE und DE Share capital EUR 89,632, Number of Shares 35,012,806 Denomination Securitisation No-par value shares with an arithmetical portion of 2.56 each in the share capital 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) 9 November 2017 Page 34

35 BayWa Share Share Price Performance From 01/01/2016 to 20/10/2017 Share Closing Price on 30/09/ High (11/05/2017) Low (30/09/2016) Closing Price on 30/09/ BayWa (Sec. code no ) Market Capitalisation in EUR m As per 30/09/2016 1,008.4 As per 30/09/2017 1,177.3 Freefloat Market cap. (30/09/2017) November 2017 Page 35

36 Contact and Financial Calendar Financial Calendar 2017/18 Head of Investor Relations November /11 Analysts Conference Call Q3 March /03 Analysts Conference, Frankfurt a.m. May /05 Analysts Conference Call Q1 June /06 Annual General Meeting, ICM Munich Josko Radeljic Arabellastraße Munich Germany Tel: +49 (0)89 / Fax: +49 (0)89 / investorrelations@baywa.de 9 November 2017 Page 36