Interim Report First Half 2016 Conference Call

Transcription

1 Interim Report First Half 2016 Conference Call Munich, 4 August 2016 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 August 2016 Page 2

3 Development of the Group YTD Summary Strategy highlights YTD Agriculture Segment BAST: Acquisition of Evergrain (100%) makes BayWa a top 5 player in international malting barley trading BAV: Strengthening of core region through purchase of distribution locations belonging to Landhandel Kohler (Baden-Württemberg) and Agro-Service Großenhain (Saxony); additional warehousing capacity of around 40,000 t Fruit: Acquisition of a majority share (68.4%) in the Dutch tropical fruit trading company TFC Holland; sale of T&G s packaging logistics unit (FCC) to PACT from Australia (special effect of ca 7 m); Golden Wing Mau (China) acquires stake in T&G (19.99%) for NZD 2.95 per share Agricultural machinery: Acquisition of the remaining 51% of the JV Agrimec (Netherlands) from Agrifirm; entry into the Canadian market through establishment of a JV with CLAAS in Calgary Digital Farming: Pooling of research & development and sales in FarmFacts GmbH (Pfarrkirchen) Energy Segment Renewable energy: New branch in Bangkok (Thailand) established in addition to Tokyo and Singapore for expansion of solar business in South East Asia Building Materials Segment Decision against JV solution in building materials business; optimisation of sales and e-commerce activities 4 August 2016 Page 3

4 Development of the Group First half August 2016 Page 4

5 Development of the Group 1-6/2016 Revenues and EBIT as against previous year Revenues EUR 7,456.4 m (Δ 15/16: EUR m / +0.5%) in EUR m 7, % 7,456.4 Strong increase in grain and oilseed marketing volumes compensate for low prices Higher revenues y/y in Building Materials Segment Oil price - related decline in conventional energy EBIT EUR 55.3 m (Δ 15/16: EUR +8.6 m / +18.4%) Jump in earnings at BayWa r.e. and conventional energy Earnings improvement in Building materials business in EUR m Despite strong fruit business, Agriculture Segment reports earnings shortfall due to pressure on margins (trade) and farmers reluctance to invest (agricultural equipment, inputs) 4 August 2016 Page * +18.4% 55.3 * 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.

6 Development of the Segments First half August 2016 Page 6

7 Agriculture Segment 1-6/2016 Grain Oilseed Seed Fertilisers Crop protection Feedstuff Fruit Agricultural equipment Digital Farming 4 August 2016 Page 7

8 Agriculture Segment 1-6/2016 Market developments: Products Products World grain balance (excluding rice; July 2016) Grain year 2015/16 ends on an above-average level: Global harvest volume just under 2 bn t Oilseed harvest almost on par with record in 2014/15 In million tons Despite continued increase in demand, grain inventories rise worldwide to new high; oilseed inventories down slightly Harvest expectations again very high in 2016/17: Global grain production at 2,041 m t (+3%) EU harvest volume at approx. 314 m t (+1.6%) Persistent rain with regional flooding in France and southern Germany could reduce grain volume and quality in 2016; German harvest expected to total around 48 m t (2015: 48.8 m t) Grain prices (Matif) post significant recovery to 170/t (wheat) and 185/t (corn) beginning in mid-march, recent easing; temporary rise in soya prices Source: USDA; 2016/17 forecast 4 August 2016 Page 8

9 Agriculture Segment 1-6/2016 Market developments: Inputs, Fruit, Equipment Input resources Fertiliser sales down; price situation and (wet) weather impact demand Fertiliser prices post strong decline at the start of the 2016/17 season; rising willingness to buy in early orders business Impassable fields: use of crop protection only possible to a limited extent Modest demand for seed Fruit Sale of remaining stock from 2015 EU harvest coupled with slightly rising prices High demand for foreign apples 2016 NZ apple harvest results in rising export volumes and top quality; strong marketing season Domestic fruit development barely impacted despite local hail damage Agri-Equipment Downward trend has probably bottomed out Propensity to invest in a severe slump: value of planned investments down 25% y/y New tractor registrations in Germany down y/y as at June (-9.7%) 4 August 2016 Page 9

10 Agriculture Segment 1-6/2016 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 2, , % 4,427.0 Revenues 1,574.1 Revenues Revenues EBIT 6.4 EBIT 26.1 EBIT % * Commentary on BAST: BAGI companies record strong increase in grain and oilseed trading volume (+24% y/y) Lower agricultural commodities prices Pressure on margins in grain & oilseed trading Commentary on BAV: Input resources sales down year on year due to weather turmoils and lower propensity to invest among farmers Significant drop in fertiliser prices narrows profit margins * Figures adjusted 4 August 2016 Page 13

11 Agriculture Segment 1-6/2016 Revenues and EBIT as against the previous year Agricultural Equipment Fruit in EUR m % In EUR m % Revenues Revenues EBIT 8.1 > -100% -1.4 EBIT % * * Revenues: 15/16 EUR million EBIT: 15/16 EUR -9.5 million Sales of new and used machinery down as expected Market-related decline in farm & animal equipment business Stable service business Cost increases (personnel) negatively impact earnings Revenues: 15/16 EUR million EBIT: 15/16 EUR +7.0 million Strong T&G marketing season more than compensates for moderate fruit business in Germany TFC Holland in 2015 not consolidated Special effect due to sale of T&G s packaging logistics unit (approx. 7 m) * Figures adjusted 4 August 2016 Page 14

12 Agriculture Segment 1-6/2016 Revenues and EBIT as against the previous year Digital Farming in EUR m Revenues 3.3 EBIT Revenues from activities by PC-Agrar GmbH and its subsidiaries (software licensing fees etc.) Investments in new generation of products (Next Farming) result in R&D costs 4 August 2016 Page 14

13 Agriculture Segment 1-6/2016 Key Financials Income Statement Agriculture in EUR m H H H1 2014* H1 2015* H /16 (%) Revenues 2, , , , , % EBITDA % % of Revenues 3.5% 1.9% 1.8% 1.7% 1.4% EBIT % % of Revenues 2.7% 1.5% 1.2% 1.2% 0.9% EBT % % of Revenues 2.0% 1.2% 0.8% 0.7% 0.4% * Figures adjusted 4 August 2016 Page 13

14 Energy Segment 1-6/2016 Fuels Heating Oil Lubricants Solid Biofuels BayWa r.e. 4 August 2016 Page 14

15 Energy Segment 1-6/2016 Market developments Renewable Energies At 64 GW, global wind expansion reaches new high in 2016; Germany largest EU market at 3.6 GW Around 66 GW in newly installed solar energy systems expected over the course of the full year; growth driven by China and US, Germany declining German EEG amendment enters into force in January 2017 Conventional Energy Following record low in January, crude oil price rises to USD 50 per barrel; most recently sideward development slightly below this level Heating oil demand in Germany benefits from oil price below previous year s level to date Positive economic development in H1; most recently rising uncertainty on account of Brexit Heating oil prices Germany ( ) Source: TECSON, as of July August 2016 Page 15

16 Energy Segment 1-6/2016 Revenues and EBIT as against previous year Conventional Energy Renewable Energy In EUR m -12.3% In EUR m +23.1% 1, Revenues Revenues > +100% 7.3 > +100% 15.7 EBIT 3.1 EBIT * * Revenues: 15/16 EUR million EBIT: 15/16 EUR +4.2 million Drop in revenues due to lower oil price y/y Strong heating business: heating oil (+10%) and wood pellet (+4%) sales volume increases Fuel sales up slightly (+2%), lubricants down (-4%) Improved heating oil trade margins Revenues: 15/16 EUR million EBIT: 15/16 EUR million Commissioning of several projects in H1: 6 solar parks (128 MW), 3 wind farms (42 MW) UK solar park Homestead (17.7 MW) sold; Ohmenheim (16.5 MW) and Külsheim (12 MW) wind projects in Germany connected Income of 10.7 m resulting from currency hedges (GBP) * Figures adjusted 4 August 2016 Page 16

17 Energy Segment 1-6/2016 Key Financials Income Statement Energy in EUR m H H H1 2014* H1 2015* H /16 (%) Revenues 1, , , , , % EBITDA > 100% % of Revenues 1.8% 2.0% 2.1% 1.2% 3.0% EBIT > 100% % of Revenues 0.9% 1.1% 1.1% -0.1% 1.8% EBT > 100% % of Revenues 0.5% 0.7% 0.6% -0.6% 1.2% * Figures adjusted 4 August 2016 Page 17

18 Building Materials Segment 1-6/2016 Building Materials 4 August 2016 Page 18

19 Building Materials Segment 1-6/2016 Market developments Market trends Dynamic start to the 2016 construction season continues in spring Business climate in construction sector posts constant improvement: in June ifo index rises to highest level since 1990 Sentiment in German Construction Sector Construction Industry Assessment present state of business Residential and public-sector construction drive growth; additional government funding Continued residential construction boom in major urban areas: approx. 300,000 residential units expected to be completed in 2016 Number of building permits rises year on year by 31.2% between January and April (ca building permits expected in 2016) Expectation business development Total revenues for companies in the industry exceed 2015 level by 6.8% (January to April) Source: ifo-institut; as of June August 2016 Page 19

20 Building Materials Segment 1-6/2016 Revenues and EBIT as against previous year Building Materials Segment in EUR m Revenues: EBIT: % > +100% 5.6 Building Materials Building Materials * Revenues: 15/16 EUR million EBIT: 15/16 EUR +5.9 million Strong building activities enhance demand for building materials Residential construction drives growth Sales increase throughout product range; civil engineering and road construction benefit from modernisation of transport infrastructure Significant earnings improvement y/y Rise in income due to increase in warehouse and transport business volume Fuel price savings 4 August 2016 * Figures adjusted Page 20

21 Building Materials Segment 1-6/2016 Key Financials Income Statement Building Materials in EUR m H H H1 2014* H1 2015* H /16 (%) Revenues % EBITDA % % of Revenues 1.7% 0.3% 2.0% 1.0% 1.8% EBIT > 100% % of Revenues 0.5% -0.5% 0.9% 0.0% 0.8% EBT % % of Revenues 0.0% -0.9% -0.1% -1.1% -0.2% * Figures adjusted 4 August 2016 Page 21

22 Development of the Group 1-6/2016 Key Financials Income Statement in EUR m H H H1 2014* H1 2015* H /16 (%) Revenues 5, , , , , % EBITDA % % of Revenues 2.9% 2.6% 1.7% 1.5% 1.6% EBIT % % of Revenues 1.8% 1.9% 0.9% 0.6% 0.7% EBT % % of Revenues 1.2% 1.6% 0.4% 0.2% 0.3% Consolidated net income % Share of minority interest % as % of net income 37.2% 16.9% 48.4% 113.8% 98.6% Share of owners of parent company > 100% as % of net income 62.8% 83.1% 51.6% -13.8% 1.4% Earnings per share (EPS) in EUR > 100% * Figures adjusted 4 August 2016 Page 22

23 Outlook for FY August 2016 Page 23

24 Outlook for 2016 AGRICULTURE AGRICU LTURE Grain & oilseed: High marketing volumes expected, export potential for high-quality wheat Grain prices should have bottomed out Low prices benefit early orders business for input resources Propensity to invest in agricultural equipment remains low, but turning point could be reached towards the end of the year Strong fruit business expected based on acquisition of TFC and T&G marketing activities EENERGY ENERGY Planned output capacity of around 375 MW in 2016 (175 MW wind, 200 MW solar) Project sales envisioned in Germany, France and UK PV trading in Europe stabilises; BayWa r.e. benefits from market consolidation No sustained recovery of oil prices on the horizon; high demand for heating oil likely to weaken Stable demand for fuel and lubricants expected due to positive economic development BUILD. MAT. BUIL DING MAT ERIA LS 2016 construction forecast raised: Hauptverband der Deutschen Bauindustrie expects 3.5% revenue increase Growth in residential and public-sector construction ensured by government funding High capacity utilisation in the industry could open up opportunities for price hikes Further process and location optimisation planned; strengthening of sales and e-commerce activities Falling logistics costs due to low commodity prices 4 August 2016 Page 24

25 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.