Annual Financial Statements as per 31 December 2017 Analysts Conference

Transcription

1 Annual Financial Statements as per 31 December 2017 Analysts Conference Munich, 29 March 2018 Prof. Klaus Josef Lutz, CEO Andreas Helber, CFO

2 Agenda 1. Financial Year Performance of the Segments 3. Group Financials 4. Strategic Outlook for FY Operational Outlook for FY 2018 Appendix BayWa AG 29 March 2018 Page 2

3 Financial Year 2017 Prof. Klaus Josef Lutz BayWa AG 29 March 2018 Page 3

4 Financial Year 2017 Highlights GROUP Positive earnings trend in all three core operating segments Completion of the full refurbishment of the Group s headquarters and relocation back to the building Successful placement of a EUR 300 million hybrid bond Dividend raised AGRICULTURE Ongoing implementation of a speciality strategy through acquisitions: 100% Tracomex (Netherlands), 100% Premium Crops (UK) Restructuring of grain trading activities in Southern and Eastern Europe completed Expansion of Fruit: JV Al Dahra BayWa Agriculture, for cultivation of fruit and vegetables in UAE, developing according to plan; projects with investment of EUR 300 million planned (USA, Australia, Japan ) BayWa AG 29 March 2018 Page 4

5 Financial Year 2017 Highlights ENERGY Growth path of BayWa r.e.: takeover of Australian wind project developer Future Energy (100%) and GroenLeven (70%) in Q1/18 with a 2 GW pipeline for solar projects in the Netherlands Expansion of service and energy trading: acquisition of several international service companies as well as CLENS (Leipzig), an electricity marketing company INNOVATION & DIGITALISATION Developing of the Agro Innovation Lab innovation centre into Ag-tech Accelerator for start-ups Start to developing software for a uniform data standard in agricultural equipment (AAG) BayWa AG 29 March 2018 Page 5

6 Financial Year 2017 Summary of the Group s key financials REVENUES IN EUR BN EBIT IN EUR M DIVIDEND IN EUR % % % 0.90* OVERVIEW Increase in revenues above all through global expansion (PV component trading) of the renewable energy business All operating segments of Agriculture, Energy and Building Materials report y/y earnings growth Turnaround in the BAST business: jump in earnings by EUR 18.5 million y/y in grain and oilseed trading despite challenging conditions in agri markets Extraordinary income from the disposal of the remaining shares in BayWa Hochhaus GmbH & Co. KG Dividend increase of EUR 0.05 to EUR 0.90 per share* * Subject to approval by the Annual General Meeting of Shareholders BayWa AG 29 March 2018 Page 6

7 Financial Year 2017 Multi-year comparison of operating EBIT EBIT IN EUR M Ø * 2017* * Excluding Innovation & Digitalisation BayWa AG 29 March 2018 Page 7

8 Financial Year 2017 Expansion progress OPERATING EBIT CONTRIBUTION IN EUR M 200 Expansion (companies acquired from 2009 onwards) Core region (companies consolidated back in 2008) % 44.4% 43.6% 56.2% 54.9% 54.4% % 55.6% 56.4% 43.8% 45.1% 45.6% BayWa AG 29 March 2018 Page 8

9 Performance of the Segments Prof. Klaus Josef Lutz BayWa AG 29 March 2018 Page 9

10 Agriculture Segment 2017 GRAIN OILSEED SEED FEEDSTUFF CROP PROTECTION FERTILISERS FRUIT AGRICULTURAL EQUIPMENT

11 Agriculture Segment 2017 Market development: Products OVERVIEW Global production of grain 2016/17 of 2,116 million tons at new record level: wheat (+2%) and maize (+10%) higher y/y WORLD GRAIN BALANCE (EXCL. RICE; MAR. 2018) IN MILLIONS OF TONS Global oilseed production 2016/17 of 741 million tons significantly exceeds expectations (+9.8% y/y) Closing stocks (grain) climbed by 21 million tons by year-end 2017 despite higher consumption Only slight y/y increase in EU grain harvest 2017 to just under 302 million tons due to dry and hot summer in Southern Europe German grain harvest of 45.6 million tons in 2017 at below-average year-earlier level Global grain production of around 2,080 million tons predicted for the crop year 2017/18 (-2% y/y) Source: USDA; * 2017/18 forecast BayWa AG 29 March 2018 Page 11

12 Agriculture Segment 2017 Market development: Inputs OVERVIEW Fertiliser and crop protection prices increase across all varieties by an average 1.7% (y/y) and 1.2% (y/y) respectively in 2017 FERTILISER PRICES CAN & UREA IN EUR/TONS Slight increase in fertiliser sales (around 2% compared with the below-average previous year) in Germany Decline in crop protection sales (-2.1% y/y), above all due to lower extent of crop disease and dry weather in early summer Closing price as of 20/03/2018 Wet weather conditions in autumn harm sowing season in 2017, resulting in lower seed volumes Increase in feedstuff volumes, boosted by higher demand from dairy and pig farming sector Closing price as of 20/03/2018 = Urea, Baltic Sea Ports = Calcium Ammonium Nitrate (CAN), Baltic Sea Ports Source: Agrarzeitung BayWa AG 29 March 2018 Page 12

13 Agriculture Segment 2017 Market development: Agricultural Equipment OVERVIEW AGRI-ECONOMIC BAROMETER Sector revenue rises by 6% (y/y) to EUR 7.6 billion Tractor registrations in Germany increase by 19% (y/y) in 2017 Increase of registrations mainly due to day approvals/emission standard adjustment Improvement in earnings and income situation of farmers: average increase of 34% in operating results Willingness to invest of farmers improves above all due to recovery in producer prices NEW TRACTOR REGISTRATIONS IN GERMANY NUMBER Ø Source: VDMA Source: DBV BayWa AG 29 March 2018 Page 13

14 Agriculture Segment 2017 Market development: Fruit OVERVIEW Fruit growing in Germany and in the EU badly affected by poor weather conditions over the course of the year: significant downturn in volumes and loss of quality due to severe night frosts in spring and summer heat in Southern & Eastern Europe Apple harvest in Germany at around 597 thousand tons, down 42% y/y; Lake Constance region reports decline in harvest of up to 70% Significant price increase for apples in Germany (95% above the five-year average in October 2017) NZ 2017 apple harvest delayed due to weather conditions and, at 542 thousand tons, slightly lower than the previous year (-1% y/y); declining export volumes (-2% y/y), but export rate of 61% still high Difficult market environment for NZA produce (tomatoes, asparagus, berries, kiwis, etc.) BayWa AG 29 March 2018 Page 14

15 Agriculture Segment 2017 Revenues and EBIT as against the previous year BAST (BAYWA AGRI SUPPLY AND TRADE) BAV (BAYWA AGRAR VERTRIEB) IN EUR M 6, % 5,817.8 IN EUR M -0.4% 2, ,812.9 Revenues Revenues > +100% % 25.7 EBIT EBIT Revenues: 16/17 EUR m EBIT: 16/17 EUR m Decline in trading volume to 33.4 million tons (-1% y/y) due to less risky trading strategy for soya Price-and volume-induced decline in revenues Turnaround in operating result: focus on functional trading and expansion of speciality business with higher margins Initial inclusion of Dutch Tracomex B.V. BayWa AG Revenues: 16/17 EUR m EBIT: 16/17 EUR -3.0 m Normalisation of input resources business in Germany; Eastern European Group companies substantially below previous year Decrease in collected volume of grain due to below-average harvest volumes Weaker storage business and downturn in demand for input resources in Eastern Europe burden result 29 March 2018 Page 15

16 Agriculture Segment 2017 Revenues and EBIT as against the previous year AGRICULTURAL EQUIPMENT NEW TRACTOR SALES IN EUR M Revenues EBIT 1, % +87.6% 1, QUANTITY 5,000 4,661 4,500 4,000 3,168 3,500 2,967 3,850 3,000 2,500 3,038 2,832 2,000 1,500 1, , , , ,659 3,529 Ø 3, Revenues: 16/17 EUR m EBIT: 16/17 EUR +9.3 m Volume-induced increase in revenues and earnings: sales of new machinery +3.7% y/y and used machinery +12.6% y/y Higher machine sales enhance demand for service Positive development of Dutch subsidiary Agrimec BayWa AG 29 March 2018 Page 16

17 Agriculture Segment 2017 Revenues and EBIT as against the previous year FRUIT IN EUR M Revenues EBIT % -30.5% SALES VOLUME IN TSD. TONS Dessert pome fruit Tropical fruits Soft and stone fruit Vegetable fruits Revenues: 16/17 EUR m EBIT: 16/17 EUR m Volume- & price-induced increase in revenues Overall sales +5% y/y due to higher NZ apple volume Year-earlier result benefits from extraordinary income from disposal of FCC (+EUR 7.5 million) Downturn weather-related in the sale of fruit (soft and stone fruit, tropical fruit) in Germany and NZ BayWa AG 29 March 2018 Page 17

18 Energy Segment 2017 BAYWA R.E. HEATING OIL LUBRICANTS SOLID BIOFUELS FUELS

19 Energy Segment 2017 Market development RENEWABLE ENERGY Global renewable energies investment of USD billion up 3% y/y Global PV capacity expansion of 30% in y/y comparison (around 97 GW): China, USA & Japan continue to be growth drivers; Germany slightly higher y/y, up 1% (1.6 GW) Global capacity installation of wind energy of 57.6 GW (+7% y/y), of which 21.2 GW in China and 7.4 GW in the US; Germany at 5.0 GW (+8% y/y) CONVENTIONAL ENERGY Following decline in the oil price to USD 44 per barrel in June, recovery in the second half of the year to USD 65 per barrel Heating oil price in Germany above year-earlier level throughout the whole year Cold winter 2016/17 results in higher sales of heating oil (+0.3%) and wood pellets (+5.0%) Demand for fuel (+1.8%) and lubricants (+0.5%) in Germany higher y/y HEATING OIL PRICES IN GERMANY (AVERAGE) IN CENT PER LITER BayWa AG 29 March 2018 Page Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan Source: Statista

20 Energy Segment 2017 Worldwide expansion of renewable energy generation capacity RENEWABLE ELECTRICITY CAPACITY GROWTH BY TECHNOLOGY UNTIL 2022 CAPACITY GROWTH IN GW 1400 Wind Solar Hydropower Others Best-case scenario % from wind and solar 82% 90% % 68% , % 70% 60% 50% % % 30% 20% 10% 0% Source: Renewables 2017, IEA By 2022, solar is expected to deliver the largest annual capacity expansion Ongoing strong growth predicted for renewable energies The capacity for electricity from renewable energies is likely to rise by more than 920 GW on a global scale by 2022, corresponding to overall growth of 43% In the best-case scenario, growth in renewable capacities could be raised by another 30% (precondition: political hurdles to growth are eliminated) BayWa AG 29 March 2018 Page 20

21 Energy Segment 2017 Revenues and EBIT as against the previous year RENEWABLE ENERGY CONVENTIONAL ENERGY IN EUR M % 1,366.7 IN EUR M 2, % 2,228.1 Revenues Revenues EBIT % 66.6 EBIT % Revenues: 16/17 EUR m EBIT: 16/17 EUR -0.7 m Jump in revenues through significant sales growth in PV trade (+56% y/y) International growth in the project business and energy trade: all in all, 16 wind and solar farms with an output of MW sold; in addition, sale of 2 biogas plants (6.6 MW) Result almost at high year-earlier level; In 2016 extraordinary income from sale of geothermal plants (EUR 14 m) BayWa AG Revenues: 16/17 EUR m EBIT: 16/17 EUR +2.7 m Price-and volume-induced increase in revenues (crude oil price higher on average than previous year) Volume growth in fuel (+1.5% y/y), lubricants (+5.5% y/y) and heating oil (+1.1% y/y) Improved margins in the fuel business 29 March 2018 Page 21

22 Building Materials Segment 2017 BUILDING MATERIALS

23 Building Materials Segment 2017 Market development OVERVIEW Construction industry benefits from short winter 2016/17 and ongoing building boom: revenues in the German construction industry climbed by 5% to EUR billion GERMAN CONSTRUCTION INDUSTRY BUSINESS CLIMATE Need for more apartments in major cities as the driver of growth: revenues in residential construction up 4% y/y Completions in apartment building construction 15.8% higher than year-earlier level: approximately 300,000 flats completed in 2017 Average of current and expectation Commercial building activity benefits from sharp increase in building permissions in the previous year (+6% y/y) Revenue in public-sector construction up 5.5% y/y Construction investment in Austria increases by 2.8% driven in particular by construction and civil engineering = Ifo Index = Assessment present business = Expectation business development Source: ifo-institut; as of February 2018 BayWa AG 29 March 2018 Page 23

24 Building Materials Segment 2017 Revenues and EBIT as against the previous year BUILDING MATERIALS SEGMENT IN EUR M IN EUR M 1, % 1, % Revenues EBIT Revenues: 16/17 EUR M Volume-induced increase in revenues Sales increases across entire product range higher demand in particular for high-volume articles in building construction product line EBIT: 16/17 EUR +1.6 m Uptrend in sales lifts earnings y/y Ongoing optimisation of locations network Successful expansion of high-margin own brand product range BayWa AG 29 March 2018 Page 25

25 Innovation & Digitalisation Segment 2017 INNOVATION & DIGITALISATION

26 Innovation & Digitalisation Segment 2017 Market development OVERVIEW The market for digital applications in the agriculture industry comprises the areas of Precision Farming (focus on automation of processes and optimisation of deploying input resources) and Smart Farming (networking of all areas of operations) Digitalisation in the agricultural industry in the top third of all sectors: capital expenditure rate of around 10% of annual revenues The optimisation of the value chain is the strongest driver of digitalisation 53% of German farmers are already using digital technologies High-tech agricultural machinery, automatic feeding machines and intelligent control software are most widely used Germany is the largest single market in Europe in the area of Precision Farming with 35% in capital expenditure (around USD 394 million) in 2017 The market volume in interactive trading and e-commerce in Germany grew by 7.9% to around EUR 78.1 billion in 2017 BayWa AG 29 March 2018 Page 26

27 Innovation & Digitalisation Segment 2017 Revenues and EBIT as against the previous year INNOVATION & DIGITALISATION IN EUR M +15.0% Revenues -25.6% EBIT Revenues: 16/17 EUR +0.9 m EBIT: 16/17 EUR -2.2 m Revenues above all from software license fees & maintenance contracts (45%) and digital maps (44%) Negative result through increase in investment in digital farming solutions and e-commerce activities BayWa AG 29 March 2018 Page 27

28 Group Financials Andreas Helber BayWa AG 29 March 2018 Page 28

29 Group Financials Final quarter as against the previous year REVENUES EUR 4,074.8 m (Δ 16/17: EUR m) Moderate revenue growth compared with previous year Significant increase in revenues for fruit and renewable energies BAST lower y/y +2.6% 3, ,074.8 Q4/2016 Q4/2017 EBIT EUR 81.0 m (Δ 16/17: EUR m) Strong final quarter Jump in earnings in the BAST business Energy and Building Materials segments slightly below year-earlier levels Extraordinary income from the sale of shares in BayWa Hochhaus GmbH & Co. KG +36.6% Q4/2016 Q4/2017 BayWa AG 29 March 2018 Page 29

30 Group Financials Key Financials Income Statement Group in EUR m /17 (%) Revenues 15, , , , , % EBITDA % % of Revenues 1.8% 1.8% 1.9% 1.8% 2.0% EBIT % % of Revenues 0.9% 1.0% 1.1% 0.9% 1.1% EBT % % of Revenues 0.5% 0.5% 0.6% 0.5% 0.6% Consolidated net income % Tax rate 27.7% -0.4% 30.1% 24.3% 34.4% Share of minority interest % as % of net income 42.5% 23.9% 21.8% 41.0% 41.5% Share of owners of parent company % as % of net income 57.5% 76.1% 78.2% 59.0% 58.5% Earnings per share (EPS) in EUR % BayWa AG 29 March 2018 Page 30

31 Group Financials Key Financials Balance Sheet Group in EUR m /17 (%) Total assets 5, , , , , % Equity 1, , , , , % Equity ratio 21.4% 18.6% 17.8% 17.0% 22.1% Equity ratio adjusted* 23.8% 22.4% 21.4% 20.8% 25.7% in EUR m /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 BayWa AG 29 March 2018 Page 31

32 Group Financials Key Financials Cash Flow Statement Group in EUR m /17 (%) Consolidated net income % 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 % Cash & cash equivalents at the end of the period % BayWa AG 29 March 2018 Page 32

33 Group Financials Adjusted net debt in relation to EBITDA and equity 2, Adjusted net debt EBITDA = = 5.4 Adjusted net debt Adjusted equity* = 0.8 1,336 1,670 1, Liabilities (Credit institute) in EUR m Cash Non- Recourse financing Readily marketable inventories 1,336 Adjusted net debt Adjusted net debt EBITDA in EUR m Adjusted net debt Adjusted equity* in EUR m * Adjusted for the reserve formed for actuarial profits/losses in the measurement of pension provisions amounting to approx. EUR 234 million BayWa AG 29 March 2018 Page 33

34 Other Activities 2017 Revenues and EBIT as against the previous year IN EUR M % 10.9 Revenues +46.9% EBIT Revenues: 16/17 EUR -2.4 m EBIT: 16/17 EUR m EBIT consists of non-core activities, overhead costs and consolidation effects Improvement in results from the extraordinary income from the sale of shares in BayWa Hochhaus GmbH & Co. KG BayWa AG 29 March 2018 Page 34

35 Strategic Outlook for FY 2018 Prof. Klaus Josef Lutz BayWa AG 29 March 2018 Page 35

36 BayWa among the most valuable brands in Germany According to a study by Brand Finance, BayWa is among the TOP 50 brands in Germany with a brand value of USD 1.6 bn Brand value of BayWa: USD 1.6 bn 4% increase in the brand value compared to last year Ranked no. 49 Valuation scheme and calculation of brand value based on royalty method Royalty method is focused on answering the question: What licencing fee would a company have to pay for using the brand BayWa if the brand was not owned by the company TOP 50 of most valuable brands in Germany Source: Brand Finance; study Brand Finance Deutschland 50 published on 10 May 2017 BayWa AG 29 March 2018 Page 36

37 Group strategy: project business as a driver throughout the whole Group BayWa will concentrate increasingly on more profitable customer and project solutions in the future as well ENERGY From the supplier of energy and heating... BUILDING MATERIALS... to project developer for renewable energies From building materials trader... GLOBAL PRODUCE... to cooperation partner for innovative building projects From system supplier of dessert pome fruit for food wholesalers and retailers... FARMING BUSINESS... to international project development of greenhouses From wholesaler to full-line equipping and management planning of farming operations BayWa AG 29 March 2018 Page 37

38 BayWa Agrar Strategy: Specialties / Grains STRATEGIC DIRECTION: PORTFOLIO ENRICHMENT THROUGH SPECIALTIES KEY CRITERIA Growing market Lower volatilities Stable margins Long-term business relationships BAST Group Portfolio Optimisation Goal: 50% specialties/ 50% other products CURRENT INITIATIVES: Grains, Co-products, By-products: Thegra Tracomex Group Since 2016 Trend Specialties Specialties and services Trend Internationalisation International Business Functional Margin Pulses: horsebeans, lupines, peas Organic grains By-products of barley, cocoa, linseed, malt, oat, rapeseed, etc National Business Trade Margin Grains, Oilseeds, Co-Products: Premium Crops Ltd. (an agricultural supply chain manager that provides to customers long-term solutions for niche crops with specialty traits) Functional Margin Development of regional and international emerging markets Reallocation of resources (capital) into more profitable business activities BayWa AG 29 March 2018 Page 38

39 Access To Growth Markets BayWa Agrar Strategy: Specialties / Fruit From Local Trader To Global Produce BayWa Fruit T&G Global Diversified Portfolio Tropical Fruit Company Exotics ready to eat Diversified Portfolio Al Dahra BayWa Greenhouse seed project Exotics ready to eat Diversified Portfolio Global Produce Greenhouse Project Development Exotics ready to eat Diversified Portfolio Premium products from local and protected production Global project development Increase self-suffiency rate reduction of import dependency Year round availability of exotics Global sourcing from over 40 countries ready to eat premium products Access to Asia Exclusive trademark rights Global trading network delivery to 40 countries Pipfruit Local apple trader Pipfruit Internationalization Pipfruit Specialization premium & club varieties Pipfruit Industrialization Pipfruit Global Produce Leading fruit trader in Germany Largest German supplier of organic pome fruits Product Knowledge BayWa AG 29 March 2018 Page 39

40 BayWa Agrar Strategy: Specialties / Fruit Vegetable Fruit Cultivation STRATEGIC RATIONALE: Reduce the volatility of product availability through production in glasshouses to increase self-suffiency rate Reduction of import dependency and efficient design of supply chain Further diversification of the product portfolio of the fruit division - focus on specialties State-of-the-art greenhouse technology enables cultivation in almost all climates Supply security for growing global food needs through high yield per hectare JOINT VENTURE IN THE UAE: Pilot Project Location Product Volume Sales Start of production Investment Country Financing 10 ha climate-controlled greenhouse Al Ain, United Arab Emirates Conventional tomatoes - high end (vine, cocktail & cherry tomatoes) 5,000 ton/ year (50kg / m2 per year) Local for local Q1 2018/5 ha EUR 28.3 m Rent-free lease for 20 years with Al-Dahra Group Shareholder loan from BayWa, until repayment loan, BayWa has 100% claim on dividend following 51% BayWa / 49% Al-Dahra BayWa AG 29 March 2018 Page 40

41 Time BayWa Agrar Strategy: Specialties / Fruit Pipeline Next Greenhouse Projects Growth in new markets for further internationalization & expertise Total investment > EUR 300 m UAE New Zealand Australia USA Japan 2017 Seed Project 10 ha 10 ha ha 5 ha ha 10 ha 10 ha 20 ha 50 ha ha 10 ha 20 ha 20 ha 10 ha 70 ha 30 ha 25 ha 30 ha 40 ha 10 ha 135 ha BayWa AG 29 March 2018 Page 41

42 Energy Segment: BayWa r.e. Acquisition of the solar project developer GroenLeven OVERVIEW: GroenLeven B.V. is a solar project developer founded in 2011 and market leader in the Netherlands (25% market share) Headquarter Employees 30 Revenues / EBIT Heerenveen, The Netherlands EUR 80 m / EUR 20 m (2017) Track record So far GroenLeven has developed and built 127 MW of solar projects in the Netherlands Transaction rationale Market entry to the fast growing solar energy market in the Netherlands; feed-in tariffs for renewable energy in the Netherlands are very high compared to rest of the world TRANSACTION DETAILS OF GROENLEVEN B.V.: BayWa r.e. acquires through the NewCo BayWa r.e. Solar B.V. 70% of GroenLeven (30% remains with the former management) Purchase price maximum EUR 159 m Shareholder loan of EUR 144 m with an interest rate of 4.5% p.a. + 3 M Euribor (will be returned with priority) Project pipeline granted for 5 years BayWa r.e. injects EUR 30 m equity into NewCo BayWa r.e. Solar B.V. BayWa r.e. among the 10 largest solar project developers of the world PROJEKT PIPELINE: APPROX. 2 GW Apply in 2018/19 Tariff granted In construction /operation 44 MW 800 MW MW TECHNOLOGY SPLIT Water 40.4% Land 35.8% Roof 23.8% REALISED PROJECTS + PROJECT PIPELINE (IN GW) BayWa AG 29 March 2018 Page 42

43 Operational Outlook for FY 2018 Prof. Klaus Josef Lutz BayWa AG 29 March 2018 Page 43

44 Operational Outlook 2018 AGRICULTURE High grain harvest anticipated worldwide leaves little room for price increases; BAST benefits from favourable soya price trend (higher volatilities expected) Ongoing expansion of higher margin speciality business (Tracomex, Premium Crops) Restructuring of domestic grain storage and trading business Higher NZ apple harvest volume and better qualities anticipated y/y Start to selling of premium tomatoes in UAE in autumn 2018 Positive start to the year in agricultural equipment through higher order book position (+43% y/y) BayWa AG ENERGY Output capacity of around 420 MW planned in 2018 (250 MW solar, 170 MW wind); 2 GW solar pipeline in the Netherlands secures long-term growth Continuation of international expansion in PV components trading and service business Average crude oil price anticipated above year-earlier level; structural decline in demand for heating oil likely to persist Wider acceptance of the BayWa fuel cards likely to increase fuels sales volume BUILDING MATERIALS Ongoing building boom in Germany: sales growth of 4% predicted in construction industry Expansion of sales specialisations: timber, system-built cellars, building components Further expansion of online offering: Baustoffe Online Portal, interior designer, Mr+Mrs Homes configurator Entry into the construction project business through project JVs Volume-induced earnings growth likely to more than compensate for union wage increases 29 March 2018 Page 44

45 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. BayWa AG 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.

46 Appendix

47 Group Financials Economic Profit 2017 in EUR m Net Operating Profit Ø Invested Capital ROIC WACC Spread Economic Profit BAST % 6.10% -5.19% BAV , % 5.90% -3.36% Agri. Equipment % 7.30% -2.96% Global Produce % 5.80% 2.44% 8.7 Agriculture Segment Conventional Energy % 6.60% 47.87% 16.2 Renewable Energy % 4.80% 2.05% 19.9 Energy Segment 36.1 Build. Mat. Segment % 7.80% 0.02% 0.1 BayWa AG 29 March 2018 Page 47

48 Financials Agriculture Segment Income Statement Agriculture in EUR m /17 (%) Revenues 10, , , , , % EBITDA % % of Revenues 1.7% 1.6% 1.4% 1.2% 1.3% EBIT % % of Revenues 1.1% 1.1% 0.9% 0.6% 0.8% EBT % % of Revenues 0.8% 0.7% 0.5% 0.3% 0.4% BayWa AG 29 March 2018 Page 48

49 Financials Energy Segment Income Statement Energy in EUR m /17 (%) Revenues 3, , , , , % EBITDA % % of Revenues 2.2% 2.1% 3.5% 3.8% 3.4% EBIT % % of Revenues 1.3% 1.2% 2.4% 2.8% 2.4% EBT % % of Revenues 0.9% 0.9% 2.0% 2.3% 1.9% BayWa AG 29 March 2018 Page 49

50 Financials Building Materials Segment Income Statement Building Materials in EUR m /17 (%) Revenues 1, , , , , % EBITDA % % of Revenues 2.2% 2.8% 2.8% 2.9% 2.9% EBIT % % of Revenues 1.4% 1.8% 1.8% 1.9% 1.9% EBT % % of Revenues 0.8% 1.1% 1.2% 1.2% 1.3% BayWa AG 29 March 2018 Page 50

51 BayWa Share 2017 BayWa AG 29 March 2018 Page 51

52 BayWa Share 2017 SHAREHOLDER STRUCTURE AS PER 31/12/2017 Bayerische Raiffeisen- Beteiligungs AG 34.87% Freefloat 40.12% Raiffeisen Agrar Invest GmbH 25.01% BAYWA SHARE PROFILE (31/12/2017) 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) BayWa AG 29 March 2018 Page 52

53 BayWa Share 2017 SHARE PRICE PERFORMANCE (FROM 01/01/2016 UNTIL 06/03/2018) FURTHER INFORMATION Closing Price on 31/12/ High (04/05/2017) Low (27/03/2017) Closing Price on 31/12/ MARKET CAPITALISATION IN EUR M Mar-16 Jul-16 Nov-16 Mar-17 Jul-17 Nov-17 Mar-18 BayWa (WKN ) As per 31/12/2016 1,071.9 As per 31/12/2017 1,125.7 Freefloat Market cap. (31/12/2017) BayWa AG 29 March 2018 Page 53

54 Investor Relations Contact JOSKO JULIUS RAPHAELA RENATE RADELJIC BLERSCH DA COSTA VON GEHLEN LORENZ Head of Investor Relations Investor Relations Manager Junior Investor Relations Manager Assistant Telefon +49 (089) Mobil Telefon +49 (089) Mobil Telefon +49 (089) Mobil Telefon +49 (089) Financial Calendar 2018 MARCH /03 Analysts Conference, BayWa AG in Munich MAY /05 Analysts Conference Call Q1 BAYWA AG Arabellastraße Munich, Germany investorrelations@baywa.de Homepage: JUNE /06 Annual General Meeting, ICM Munich