Interim Report as per 30 September 2014 Conference Call

Transcription

1 Interim Report as per 30 September 2014 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/ Outlook FY 2014 Appendix Page 2

3 Development of the Group 1-9/2014 Page 3

4 Development of the Group 1-9/2014 Summary Revenues in EUR million 12, % 11,442.3 Operating EBIT in EUR million -16.7% excl. special effects excl. special effects Highlights Takeover of the remaining 40% in Bohnhorst Agrarhandel GmbH Sale of RKW Süd's foodstuff production to Deutsche Tiernahrung Cremer Reorganisation of BayWa's national fruit business as from 1 January 2015 T&G joint-venture with Unifrutti for cultivating table grapes in Peru Expansion of BayWa r.e.'s US activities: takeover of Martifer Solar USA; sale of Brahms Wind Farm (19.8 MW) in New Mexico Successful placement of bonded loan Page 4

5 Development of the Group 1-9/2014 Revenues and EBIT as against previous year Revenues EUR 11,442.3 m (Δ 13/14: EUR m / -5.9 %) Agriculture reports price-induced revenues decline Building Materials portfolio streamlining results in revenues downturn Downtrend in Conventional Energy due to falling oil prices Growth of BayWa r.e. in EUR m -5.9% 12, , EBIT EUR 74.5 m (Δ 13/14 EUR m / %) in EUR m % Pressure on margins owing to declining agri markets 1-9/2013 comprises special items from the disposal of three property portfolios Special items in 1-9/2014: restructuring costs from portfolio streamlining in the Building Materials segment Page 5

6 Development of the Group 1-9/2014 Multi-year comparison of EBIT in EUR m +41.7% 43.9 Other activities +43.1% +1.9% -16.7% Operating result Other activities Consolidation Page 6

7 Development of the Group 1-9/2014 Expansion progress Operating EBIT (in EUR m) BayWa excl. acquisitions BayWa incl. acquisitions +86.6% BayWa including companies aquired from 2009 onwards BayWa excluding companies acquired from 2009 onwards Page 7

8 Global M&A-Activities Agri-Trading Sector /14: Cargill purchases 5% of the shares in UkrLandFarming 10/14: DAVA Agravis Int purchases Getreide AG 08/14: Lantmännen Cerealia takes over Stängnäs Valskvarn 05/14: Lantmännen and DLG take over Hage Polska 10/14: ADM takes over remaining 20% in Toepfer 10/14: ADM acquires Specialty Commodities Incorporated 05/14: Bindewald & Gutting GmbH acquires PMG GmbH 06/14: Louis Dreyfus acquires Ilomar Holding N.V. 03/14: COFCO Corp acquires 51% in Nidera 10/14: LDC and Sofiproterol enter into a cooperation 10/14: SHV Holdings N.V. takes over Nureco N.V. 04 /14: COFCO Corp acquires 51% in Noble Agri Page 8

9 Development of the Group 1-9/2014 Key Financials Income Statement Group in EUR m /14 (%) Revenues 5, , , , , % EBITDA % % of Revenues 2.7% 2.8% 2.7% 2.2% 1.4% EBIT % % of Revenues 1.5% 1.7% 1.6% 1.5% 0.7% EBT % % of Revenues 1.0% 1.2% 1.0% 1.1% 0.3% Consolidated net income % Share of minority interest % as % of net income 33.4% 23.8% 34.8% 20.1% 68.3% Share of owners of parent company % as % of net income 66.6% 76.2% 65.2% 79.9% 31.7% Earnings per share (EPS) in EUR % Page 9

10 Development of the Group 1-9/2014 Key Financials Cash Flow Statement in EUR m /14 (%) Cash earnings % Cash flow from operating activities % Cash flow from investing activities > -100% 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 % % % Page 10

11 Development of the Group 1-9/2014 Key Financials Balance Sheet in EUR m /14 (%) Total assets 3, , , , , % Equity , , , , % Equity ratio 28.6% 26.1% 23.5% 21.9% 20.0% in EUR m /14 (%) Non-current assets 1, , , , , % Current assets 1, , , , , % Provisions % Financial liabilities , , , , % Page 11

12 Development of the Segments 1-9/2014 Page 12

13 Agriculture Segment 1-9/2014 Seed Fertiliser Crop protection Grain Feedstuff Agricultural equipment Fruit Page 13

14 Agriculture Segment 1-9/2014 Market Developments Agricultural products Global grain production of just under 2 billion tons in 2014/15 matches record set in the previous year World grain balance (without rice; October 2014) In million tons Inventory change Production Consumption Global oil seed production reports even stronger growth; 2014/15 output stands at 528 million tons, up 5% yoy Despite the sustained increase in consumption, notable growth in grain and oilseed inventories (grain: highest level since 2000/01; oilseed at record high) Consequence of bumper harvests and high inventory levels: prices fall to lowest level for four years Reaction of market participants: hesitant buying behaviour of processors in expectation of prices falling further; farmers unwilling to sell the harvest in anticipation of prices rising again Considerably improved selling options anticipated in Q4, as prices have meanwhile bottomed out and are starting to rise again, causing buyers and farmers to return to the market Higher selling levels likely to hold steady also in Q1/15 Source: USDA; 2014/15 forecast Page 14

15 Agriculture Segment 1-9/2014 Market Developments Agricultural resources Fruit Agri equipment Strong demand for fertilisers in H1; hesitant start to upfront buying business in Q3 Apple production in the EU (11.9 m tons;+ 9.2% y/y) and in Germany (1.0 m tons; +29% y/y) running at a high level New tractor registration figures in Germany so far just below previous year level (-1.2%) At the same time, Russia's export embargo causes a steep decline in exports to Russia In recent weeks, slump in demand; many manufacturers are slashing production Polish produce therefore increasingly flooding the EU market and exerting strong price pressure Growing reluctance of farmers to invest; exception: stabling equipment Fertiliser prices recently extremely volatile Excess supply causes prices for seed to decline; demand stable Crop protection: good start to autumn application Page 15

16 Agriculture Segment 1-9/2014 Market Price Trends Wheat & Corn International Paris, 27/10/2014 Granulated Urea & CAN Baltic Sea Ports, 28/10/2014 /t /t Closing price on 28/10/ Closing price on 27/10/ Closing price on 28/10/2014 Closing price on 27/10/2014 = Wheat Matif, Paris = Granulated Urea, Baltic Sea Ports = Corn Matif, Paris = CAN, Baltic Sea Ports Source: Page 16

17 Agriculture Segment 1-9/2014 Revenues and EBIT as against previous year Agricultural Trade In EUR m -8.7% 6, ,299.6 Revenues -39.0% EBIT Revenues: 13/14 EUR million EBIT: 13/14 EUR million Price-induced downturn in revenues Margin squeeze in grain trading Reluctant upfront buying of operating resources; narrowing margins for cereal seed due to excess market supply Page 17

18 Agriculture Segment 1-9/2014 Revenues and EBIT as against previous year Agricultural Equipment In EUR m Fruit in EUR m -1.0% % Revenues Revenues -24.3% -16.0% EBIT EBIT Revenues: 13/14 EUR -9.8 million EBIT: 13/14 EUR -2.6 million Revenues: 13/14 EUR million EBIT: 13/14 EUR -5.1 million Year-earlier revenues level maintained despite weakening markets Decline in new machinery (-13% y/y) compensated by sale of used machinery Shift in demand in favour of lower-margin stabling equipment Good sales trend in Q3 Declining prices put pressure on margins Profit contribution by Apollo Apples Ltd not yet included Enza Foods restructuring burdens result Page 18

19 Agriculture Segment 1-9/2014 Key Financials Income Statement Agriculture /14 (%) in EUR m Revenues 2, , , , , % % 2.6% 3.2% 3.1% 1.7% 1.4% % 2.3% 2.1% 1.2% 0.9% % 1.7% 1.4% 0.9% 0.5% EBITDA % of Revenues EBIT % of Revenues EBT % of Revenues -32.4% -52.7% Page 19

20 Energy Segment 1-9/2014 Fuels Heating Oil Lubricants Solid Biofuels BayWa r.e. Page 20

21 Energy Segment 1-9/2014 Market Developments Rohöl& Heizölpreise sinken auf Mehrjahrestiefs Market Trends Multi-year comparison heating oil prices Development of heating oil prices in Germany ( ) Crude oil and heating oil prices fall to multi-year low Imminent heating season and downturn in prices boost demand for sources of heating from August onwards Lubricants sector unchanged from year-earlier level despite economic deterioration in Germany Global renewable energies boom: 80% of capital investments in generating energy in the industrial nations go into renewables PV installation at global record high (around 50 GW) in 2014: China, Japan & UK as drivers Amendment to German Renewable Energy Act in force since August Spain: revision of energy act approved in July 2014; retrospective cap on wind feed-in tariffs Source: TECSON, as of October 2014 Page 21

22 Energy Segment 1-9/2014 Revenues and EBIT as against previous year Conventional Energy Renewable Energy In EUR m In EUR m +60.4% -9.6% 2, ,032.4 Revenues Revenues > +100% -46.7% EBIT EBIT Revenues: 13/14 EUR million EBIT: 13/14 EUR -3.5 million Price-induced decline in revenues Sharp increase in demand for heating oil at the end of Q3 Ground made up in sales backlog y/y in the heating business; lubricants higher y/y Revenues: 13/14 EUR million EBIT: 13/14 EUR million Sharp profit increase in the project business: Sale of solar parks and wind farms, e.g. in UK (56.3 MW), wind farm in USA (19.8 MW), solar park in Germany (Selmsdorf III; 9.2 MW) Start-up costs for location build-up in Scandinavia (wind) and USA (solar) compensated Page 22

23 Energy Segment 1-9/2014 Key Financials Income Statement Energy /14 (%) in EUR m Revenues 1, , , , , % % 1.5% 1.2% 1.8% 1.6% 2.0% % 0.7% 0.9% 0.7% 1.0% % 0.4% 0.5% 0.2% 0.5% EBITDA % of Revenues EBIT % of Revenues EBT % of Revenues 38.4% >100% Page 23

24 Building Materials Segment 1-9/2014 Building Materials Page 24

25 Building Materials Segment 1-9/2014 Market Developments Market Trends Boom in the German construction sector recently slowing after early start to the season Sentiment in German Construction Sector Construction Industry Summer months determined by weaker construction activities due to the holiday period Ifo Business Climate Index for the construction industry falls to its lowest level since December 2012 (-7.1 points) In 2014, expansion limited to multi-family homes: full-year growth of 2.3% in construction volume anticipated Rising construction prices: cost of new builds around 1.7% higher than in 2013 Construction investment favoured by the still low interest rate environment Solid budgetary position likely to create scope for future public-sector infrastructure expenditure Assessment present state of business Expectation business development Source: ifo-institut; as per October 2014 Page 25

26 Building Materials Segment 1-9/2014 Revenues and EBIT as against previous year Building Materials Segment (2013 not adjusted) in EUR m Revenues: EBIT: -9.6% 1, % 1, Building Materials Building Materials * Revenues: 13/14 EUR million Year-earlier revenues include disposed locations Following a strong H1, downturn in demand in the summer months due to the holiday period * EBIT: 13/14 EUR +4.3 million Loss-making sold locations not disclosed in core segment in 2014 Volume growth in the warehouse and transit business High-margin renovation and refurbishment business in decline * 2014 excluding the activities of sold locations in NRW and Rhineland-Palatinate (transfer of ownership in Q2) Page 26

27 Building Materials Segment 1-9/2014 Key Financials Income Statement Building Materials * 13/14 (%) in EUR m Revenues 1, , , , , % % 2.7% 3.3% 2.9% 1.7% 2.1% % 2.0% 1.8% 1.0% 1.5% % 1.4% 1.2% 0.6% 1.1% EBITDA % of Revenues EBIT % of Revenues EBT % of Revenues 33.6% 47.0% * 2014 excluding the activities of sold locations in NRW and Rhineland-Palatinate (transfer of ownership in Q2) Page 27

28 Other Activities 1-9/2014 Revenues and EBIT as against previous year In EUR m > +100% 81.0 Revenues 7.5 > -100% 43.8 EBIT Revenues: 13/14 EUR million EBIT: 13/14 EUR million Revenues primarily comprise Building Materials activities of sold locations in NRW and Rhineland-Palatinate EBIT consists of profit contributions and disposal losses from Building Materials restructuring (in 2013 non-recurrent effects from property disposals) Page 28

29 Outlook FY 2014 Page 29

30 Outlook for FY 2014 Outlook 2014 AGRICULTURE Bumper harvest volumes create greater grain selling potential Agricultural commodity prices should have bottomed out; greater willingness anticipated to sell and buy grain and oilseeds Upfront fertiliser buying likely to accelerate in the final quarter AGRICU Stable development of agri-equipment expected due to rising demand for indoor systems LTURE International trading network of the Group enables intensified selling of high EU stocks of apples to Asia and North Africa E ENERGY ENERGY BUILD. MAT. BUIL DING MAT ERIA LS Further project sales in renewables planned by the end of the year (e.g MW solar park in France) Entry into the US solar project business creates additional profit potential BayWa r.e. likely to outperform 2013 result Oil price decline and cold weather to boost heating oil sales Stable demand for fuel and lubricants anticipated in Q4 High building permit figures for homes (+9.6% in H1) support construction activities Stronger demand for higher-margin products for extension and finishing in the final quarter Disbursement of supplier bonuses at year end Sales trend in construction and civil engineering for Q4 depends greatly on weather conditions Page 30

31 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.

32 Appendix Page 32

33 Agriculture Segment 1-9/2014 Grain Balance World / Usage in millions of tons 2011/ / / /15* 2,300 2,257 2,452 2, Available 2,761 2,717 2,897 2,939 Consumption 2,301 2,272 2,388 2, Stock / Consumption in % Days - final stock Production Opening Balance Closing Balance [in millions of tons: wheat, rice, maize, barley, oats, rye, sorghum] Status: 10/2014; *2014/15 Forecast; figures partly estimated Sources: DRV, ACTI, IGC, BayWa, Copa, Coceral, ZMP, Strategie grains Page 33

34 BayWa Share Page 34

35 BayWa Share Share Price Performance Share from 01/10/2013 to 29/10/2014 Closing price on 30/09/ High (08/07/2014) Low (30/09/2014) Closing price on 30/09/ Market Capitalisation in EUR m As per 30/09/2013 1,274.4 As per 30/09/2014 Freefloat Market cap. (30/09/2014) 1, BayWa (Sec. code no ) Page 35

36 BayWa Share Shareholder Structure as per 30/09/2014 BayWa Share Profile (Sept. 2014) Stock Exchanges Frankfurt, Munich, Xetra Bayerische RaiffeisenBeteiligungs AG 34.8% Freefloat 40.0% 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 36

37 Contact and Financial Calendar Financial Calendar 2014/2015 Head of Investor Relations November /11 Analysts Conference Call Q3 Josko Radeljic St.-Martin-Str. 76 January /01 Capital Market Day, Berlin Munich 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 37