Annual Financial Statements as per 31 December 2011 Analysts Conference

Transcription

1 Annual Financial Statements as per 31 December 2011 Analysts Conference Frankfurt/M, 30 March 2012 Klaus Josef Lutz, CEO Andreas Helber, CFO

2 Agenda 1. Financial Year Group Financials 3. Performance of the Segments 4. Outlook for BayWa Share in 2011 Appendix page 2

3 Financial Year 2011 page 3

4 Financial Year 2011 Macroeconomic environment Global economic output rises by +2.7% in real terms Development of gross domestic product (GDP) in important areas of the world* Germany +3.0% (strong export activities, domestic demand and healthy labour market) Euro area +1.6% (PIIGS debt crisis brakes expected growth) USA +1.7% (high unemployment and consolidation pressure hampers domestic economy) Japan -0.9% (burdening factors: environmental catastrophe and nuclear accident in Fukushima) Developing countries +6.0% (growth particularly in China +9.1%, India +6.5% and Indonesia +6.4%) Economic expansion, particularly in Germany and in the developing countries Capital markets: turbulent year on the stock exchanges MSCI World -8.2% Euro Stoxx -17.5% DAX -14.7% MDAX -12.2% *Source: World Bank estimates (Jan. 2012) page 4

5 Financial Year 2011 Expectations fulfilled GOALS RESULTS FINANCE Revenues > 8.0 billion EBIT > 150 million BayWa r.e EBIT > 26 million Economic profit > 6.80% WACC 9.6 billion million 27.1 million Except for DIY all business units exceed WACC target STRATEGY Internationalisation Expansion in core business Portfolio optimisation taking account of value-driven management of company Turners & Growers (NZ) BayWa r.e in USA, UK,... Carve out of DIY&GC without loss in value and jobs safeguarded Stronger diversification of customer and product portfolio in core business to secure profit long term! page 5

6 Financial Year 2011 Highlights T&G - Intrinsic value Profitability International operations - Founded in Vert. integrated business model - Global trading platform - New Zealand's market leader - Exclusive rights to the ENZA brand - 70% share in Delica NZ - Own plantations and real estate - Access to high-growth markets in Asia and Indonesia - High equity ratio of around 67% - Low gearing (1.1x net financial debt) - EBIT margin of 3.8% in Presence on five continents - Intern. supplier network - Export of more than 30 types of apples worldwide - Export of pipfruit in around 50 countries - Perfect fit due to similar history, structure, corporate philosophy and culture - Close and long-term relationship with fruit and vegetable growers - T&G generates its best operating results for years in Takeover-induced depreciation and amortisation results in marginally negative EBT in Delivery of fresh fruit possible throughout the whole year - Access to and control of global flows of merchandise and trading page 6

7 Financial Year 2011 Highlights T&G Cooperation BayWa Nord, Jork Sint-Truiden, Belgium (Joint Venture) 2009 Locations - BayWa Fruit Frucom Fruitimport GmbH, Hamburg Shareholder structure T&G Bartel Freefloat 5% 12% Scales 10% Rhineland Palatinate Two locations in the Rhein-Neckar region Weisenheim 2009 Ingelheim locations on Lake Constance 73% BayWa Sales Financial & EBIT development performance / Fruit BayWa Fruit Status and next steps T&G Revenues (EUR m) EBIT (EUR m) ~ e Incl. T&G EBIT Revenues OIO approval was granted on 06/03/2012 Purchase price of NZD 158 million (approx. 98 million) for 73% of the shares in T&G (closing on 12/03/2012) Appointing of new management Initiation of a strategic review process - Optimisation of existing organisation and logistics structure (supply chain management) - Sale of non-core assets (e.g. real estate / minor participating interests) page 7

8 Financial Year 2011 Highlights DIY&GC carve out Joint Venture BayWa/Hellweg Successful carve out and integration of the DIY&GC business unit into BayWa Bau und Garten GmbH & Co. KG effective 1 January 2012 High strategic fit enables leveraging of genuine cost/earnings synergies First above-budget successes to be delivered already in 2012 Partnership with longer term horizon allows BayWa's controlled exit: no reduction in staff numbers retention of the real estate portfolio avoidance of capital loss page 8

9 Financial Year 2011 Summary of the BayWa Group s Key Financials Revenues In EUR m EBIT In EUR m EBT In EUR m Positive earnings position Revenues and profit significantly higher y/y +21.3% +17.5% +12.2% 7,903 9, EBIT of EUR m in line with forecast EBIT increases in all three core segments y/y Dividend In EUR m % 0.60 Total assets and equity In EUR m 3,253 1, % 3,913 1,068 Results-oriented dividend policy Dividend increase to EUR 0.60 per share: increase in distribution ratio of 34% to 40% (adjusted for minority interest)* Dividend almost doubled since 2007 (average annual increase of 17%) * Subject to approval by the Annual General Meeting of Shareholders page 9

10 Financial Year 2011 Multi-year comparison of EBIT In EUR m % -28.7% % Ø % page 10

11 Financial Year 2011 Market trends 2011 AGRICULTURE ENERGY BUILDING MAT. Farmers' income situation very positive Prices of agricultural produce significantly higher y/y Harvest purchase prices average of around 30% above previous year Price trend supported by growing demand and rising energy prices Above average price increase for operating resources (approx. 8%) with demand remaining stable Greater willingness of farmers to invest due to good selling prices for agricultural produce Agricultural equipment reports record year; revenue growth around 30% against previous year Fuel and lubricants business boosted by economic environment Decline in market volume of heating oil (around -15% y/y); structural change in markets, high crude oil prices and relatively mild winter weaken demand; sale of wood pellets rises to detriment of heating oil Heating oil market contracts more swiftly than anticipated by industry Nuclear catastrophe in Fukushima results in retraction of extension of nuclear plants' working life Solar sector characterised by overcapacity and tumbling price of solar modules Booming PV business in December due to cuts in feed-in tariffs at the start of 2012 Construction sector benefits from good weather conditions Rising number of building permits (+ 18% y/y to around 223,000 permits) Residential construction driver of growth Low interest rates have positive impact on investment decisions Economic environment boosts retail trade business page 11

12 Group Financials page 12

13 Group Financials Revenues and EBIT as against the previous year Revenues EUR 9,585.7 million (Δ 10/11: EUR +1,682.7 million / +21.3%) Revenues reach new all-time high All three core segments contributed to increase in revenues; increase largely due to higher prices for agricultural produce, operating resources and mineral oil products High demand for agricultural equipment In EUR m 21.3% 7, ,585.7 FY 2010 FY 2011 EBIT EUR million (Δ 10/11: EUR million / +17.5%) Target of > EUR 150 million achieved Significant increase in profit of the Building Material Segment Positive profit trend is especially the result of operating activities (no special items) Profit trend confirms strategy: building up of the renewable energy's business line and focusing on core segments In EUR m 17.5% FY 2010 FY 2011 page 13

14 Group Financials Final quarter as against the previous year Revenues EUR 2,542.8 million (Δ 10/11: EUR million / +24.2%) Final quarter significantly higher y/y due to price levels Price increase in Agriculture and Energy Significant increase in Energy Segment through seasonal heating oil business and sale of BayWa r.e projects In EUR m 2, % 2,542.8 Q4/2010 Q4/2011 EBIT EUR 28.3 million (Δ 10/11: EUR million / -34.0%) Weaker final quarter in line with expectations Agricultural Trade: postponement of selling and early purchasing business in 2012 Special items in Q4/2010 included (Intrade disposal) In EUR m % 28.3 Q4/2010 Q4/2011 page 14

15 Group Financials Key Financials - Income Statement Group In EUR m /11 (%) Revenues 8, , , , % EBITDA % % of revenues 2.9% 2.9% 2.9% 2.6% EBIT % % of revenues 1.8% 1.6% 1.6% 1.6% EBT % % of revenues 1.2% 1.0% 1.1% 1.0% Consolidated net income % Tax rate 25.9% 20.9% 23.3% 28.6% Share of minority interest % as % of net income 24.0% 24.1% 24.6% 26.6% Share of owners of parent company % as % of net income 76.0% 75.8% 75.4% 73.4% Earnings per share (EPS) in EUR % page 15

16 Group Financials Key Financials - Balance Sheet In EUR m /11 (%) Total assets 3, , , , % Equity , , % Equity ratio 29.8% 32.6% 30.9% 27.3% In EUR m /11 (%) Non-current assets 1, , , , % Current assets 1, , , , % Provisions % Financial liabilities , % page 16

17 Group Financials Key Financials - Cash Flow Statement In EUR m /11 (%) Consolidated net income % Cash flow from operating activities % Cash flow from investing activities % Cash flow from financing activities % Cash & cash equivalents at the start of the period % Cash & cash equivalents at the end of the period % page 17

18 Group Financials Economic Profit In EUR m Net Operating Profit Ø invested capital ROIC WACC Spread Economic profit Resources & Products % 6.80% 0.64% 4.8 Fruit % 6.80% 10.86% 2.5 Agri Equipment* % 6.80% 1.38% 3.6 Agriculture Segment , % 6.80% 1.04% 10.9 Conventional energy % 6.80% 60.85% 5.7 BayWa r.e % 6.80% 4.48% 10.7 Energy Segment % 6.80% 6.59% 16.4 Building Materials % 6.80% 0.21% 0.8 DIY % 6.80% -2.39% -6.4 Build. Mat. Segment % 6.80% -1.19% -5.6 * Excl. recently established Claas subsidiaries page 18

19 Performance of the Segments page 19

20 Agriculture Segment in 2011 Seed Fertilisers Crop protection Grain Feedstuff Agricultural equipment Fruit page 20

21 Agriculture Segment in 2011 Farmers sentiment remains on a high level Economic barometer for Agriculture as of December 2011 Source: Produkt+markt page 21

22 Agriculture Segment in 2011 Revenues and EBIT as against the previous year Revenues In EUR m 21.5% Agri. Trade: EUR 3,029.6 million; 10/11 EUR million (+19.8%) Agri. Equipm.: EUR 1,099.5 million; 10/11 EUR million (+25.9%) 3,505.1 Agri. Equipm Fruit: EUR million; 10/11 EUR million (+26.2%) High prices for produce and operating resources Higher sales of operating resources: Agri. Trade* 2,631.8 fertilisers+2.6%, feedstuff +2.4% Higher sales of fruit: up +33% from bumper harvest on Lake Constance FY 2010 Record revenues for agricultural equipment from strong demand for tractors EBIT In EUR m Agri. Trade: EUR 56.1 million; 10/11 EUR +6.7 million (+13.5%) Agri. Equipm.: EUR 18.0 million; 10/11 EUR +7.2 million (+67.0%) Agri. Equipm. Fruit: EUR 4.0 million; 10/11 EUR +0.3 million (+6.7%) Selling of grain stock in 1H yields profit increase Agri. Trade* Higher fertiliser prices can be implemented in the market Great willingness of farmers to invest Positive development of seed 4, , ,159.4 FY % FY 2010 FY 2011 * incl. fruit business page 22

23 Agriculture Segment in 2011 Key Financials - Income Statement Agriculture In EUR m /11 (%) Revenues 4, , , , % EBITDA % % of revenues 3.9% 2.5% 2.9% 2.7% EBIT % of revenues 2.8% 1.4% 1.8% 1.8% EBT % of revenues 1.8% 0.6% 1.1% 1.1% 22.1% 23.8% page 23

24 Energy Segment in 2011 Fuels Heating oil Lubricants Solid biofuels BayWa r.e page 24

25 Energy Segment in 2011 Market developments Multi-year comparison of heating oil prices Capacity of PV plants remunerated under the German EEG Development of oil prices in Germany Annual installation 24,820 Installed capacity In MWp 7,500 17,320 7,406 9,914 17,320 3,794 6,120 4,170 2, ,105 2, ,271 2,056 2,899 1,950 9,914 6,120 4, :Source: TECSON, as per March 2012 Source: Bundesministerium für Umwelt (as per March 2012) page 25

26 Energy Segment in 2011 Revenues and EBIT as against the previous year Revenues In EUR m 31.9% Conventional energy: 10/11 EUR million (+33.4%) Revenue increase due to high oil price and acquisition of WAV ( 300 m) 2,358.5 Fuels and lubricants product segments report sales growth of 3.5% BayWa r.e and 6.6% respectively due to economic environment and acquisitions Renewable Energies: 10/11 EUR million (+20.1%) Energy 2,103.7 Sales growth in the sole trading (around 50% y/y) unable to compensate for price decline in PV modules FY 2010 Project sales completed; 31 MW of planned output capacity sold EBIT Conventional energy: 10/11 EUR -2.9 million (-31.7%) Margin pressure on heating oil due to high price level; by contrast, filling station margins slightly higher y/y Contraction in margins for wood pellets (mild winter) Renewable Energies: 10/11 EUR +6.0 million (+28.5%) BayWa r.e exceeds profit target of EUR 26 million Profit split: around 1/3 PV trading, 2/3 project development In EUR m 3, ,805.8 FY % BayWa r.e Energy FY 2010 FY 2011 page 26

27 Energy Segment in 2011 Key Financials - Income Statement Energy In EUR m /11 (%) Revenues 2, , , , % EBITDA % % of revenues 0.8% 1.4% 1.8% 1.7% EBIT % of revenues 0.4% 1.0% 1.3% 1.1% EBT % of revenues 0.5% 0.9% 1.1% 0.7% 10.2% -10.5% page 27

28 Building Materials Segment in 2011 Building Materials DIY & Garden Centres* * Carve out of German DIY & GC business as per 01/01/2012 page 28

29 Building Materials Segment in 2011 Market developments Building permits in Germany [number of homes] Turnover of construction industry in Germany Nominal rate of change in percent y/y * Construction overall Residential construction Commercial construction Building permits granted in building construction: residential and nonresidential (incl. construction measures on existing buildings) :Source: German Federal Statistical Office, as per: March Public-sector construction Source: German Federal Statistical Office, as per: 20/03/2012 * forecast 2012: Hauptverband der Deutschen Bauindustrie e.v. page 29

30 Building Materials Segment in 2011 Revenues and EBIT as against the previous year Revenues In EUR m 8.5% Building Materials: 10/11 EUR million (+10.0%) 1,903.1 Long construction season delivers increase in revenues DIY Loss of revenues resulting from the sale of northern locations more than compensated DIY & Garden: 10/11 EUR million (+4.6%) Building Materials 1,370.8 Revenue growth through greater sales surface area and product mix optimisation FY 2010 New markets opened in Aalen and Aschaffenburg EBIT In EUR m Building Materials: 10/11 EUR million (+>100%) Positive impact from short winter and construction boom Own brand concept contributes to raising earnings Internal optimisation measures taking effect DIY DIY & Garden Centres: 10/11 EUR +2.0 million (+20.5%) Building Materials Mild weather conditions boost garden centre business ,508.5 FY % FY ,065.5 FY 2011 page 30

31 Building Materials Segment in 2011 Key Financials - Income Statement Building Materials In EUR m /11 (%) Revenues 1, , , , % EBITDA % % of revenues 3.2% 3.1% 2.5% 3.2% EBIT % of revenues 1.2% 1.4% 1.0% 1.8% % 0.7% 0.4% 1.2% EBT % of revenues 99.5% >100% page 31

32 Outlook for 2012 page 32

33 Outlook for the Financial Year 2012 Outlook 2012 Good prospects for profit growth AGRICULTURE AGRIC ULTURE Farmers' sentiment remains positive Harvest forecasts anticipate higher trading volume High price level for produce and operating resources expected to hold steady Additional earnings through Turners & Growers Agricultural equipment business set to benefit from order backlog from 2011 Stable liquidity inflow for farmers likely to continue EENERGY Recovery in crude oil prices not anticipated; markets volume still in a downtrend Filling volumes of private household heating oil tanks still below average Stable demand for the sale of fuels and lubricants anticipated Crowding out in PV trading in Germany expected Good growth prospects for wind projects in Germany and abroad Continuation of profit uptrend in the field of renewable energies ENERGY BUILDING MAT. Tailwind for building materials business from upswing in construction sector Refurbishment, renovation and modernisation demand set to remain strong Positive profit effects from measures to enhance productivity Plans for ongoing streamlining of locations Further growth in profit expected Page 33

34 The BayWa Share in 2011 page 34

35 The BayWa Share in 2011 Share price performance Share from 01/01/2011 until 01/02/2012 BayWa (sec.code no ) Closing price on 30/12/ High (06/01/2011) Low (08/08/2011) Closing price on 30/12/ Market capitalisation in EUR m As per 30/12/2010 1, As per 30/12/2011 Free float market cap. (30/12/2011) page 35

36 The BayWa Share in 2011 Shareholder structure as per 31/12/2011 BayWa share profile (December 2011) Bayerische RaiffeisenBeteiligungs AG 35.15% Free float 39.73% Stock exchanges Frankfurt, Munich, Xetra Segment Official Market/Prime Standard Stock exch. index MDAX (Sec. code no and ) ISIN DE and DE Share capital EUR 87,920, Number of shares 34,344,020 Raiffeisen Agrar Invest GmbH 25.12% Denomination No-par value shares with an arithmetical portion of EUR 2.56 each in the share capital Securitisation In the form of a global certificate deposited with Clearstream Banking AG. Shareholders participate as co-owners corresponding to the number of shares held (collective custody account) page 36

37 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.

38 Appendix page 38

39 Business Model & Revenue Segmentation Revenues 2011 [in EUR m] Business Model 9,586 Group 4,259 Agriculture 3,112 Energy 44% Financial investors Agriculture Farmers Mid-tier Building Materials B2B clients Energy/renewable Energy SMEs Customers BayWa AG 32% Operating Activities 2,066 Building materials Other Activities % 2% Markets USP Trading Logistics >Everywhere Distribution close to Financing customers< Project development page 39

40 BayWa present in 17 countries PL GB BE DE CZ FR USA v AT CH SL IT SK HU HR SRB ES Agriculture Segment Energy Segment Building Materials Segment NZ page 40

41 Agriculture Segment in 2011 Market price trends Source: Wheat international, Paris, 15/3/2012 Corn international, Paris, 15/3/2012 Closing price as of 15/03/2012 Closing price as of 15/03/2012 Urea, Granulated urea ex Baltic Sea Ports, 15/3/2012 CAN, Calcium ammonium nitrate ex Baltic Sea Ports, 15/3/2012 Closing price as of 15/03/2012 Closing price as of 15/03/2012 page 41

42 Agriculture Segment in 2011 Grain Balance - World and Usage In millions of tons 06/07 07/08 08/09 09/10 10/11 11/12* Production Available Consumption Closing balance Stock / consumption in % Days - final stock Opening balance [in millions of tons: wheat, rice, maize, barley, oats, rye, sorghum] Status: 12/2011; *2011/12 forecast; figures partly estimated Sources: DRV, ACTI Schumacher, DOWJones, BayWa page 42

43 Other Activities Segment in 2011 Revenues and EBIT as against the previous year In EUR m Revenues EUR million (Δ 10/11: EUR million / +9.6%) 9.6% Increase in revenues from Ybbstaler's higher business volume Approval by the anti-trust authorities for JV between Agrana and Ybbstaler still pending FY 2010 EBIT FY 2010 FY 2011 FY 2011 In EUR m In EUR m Transition Transition page 43

44 Contact and Financial Calendar Financial Calendar 2012 Head of Investor Relations March /03 Annual Results Press Conference 30/03 Analysts Conference, Frankfurt a.m. Josko Radeljic May /05 Press Release Q1 10/05 Analysts Conference Call Q1 30/05 Annual General Meeting, ICM Munich August /08 Press Conference on the First Half-Year 09/08 Analysts Conference Call Q2 Germany November /11 Press Conference Q3 12/11 Analysts Conference Call Q3 Tel.: +49 (0)89 / Fax: +49 (0)89 / investorrelations@baywa.de Arabellastr Munich