Annual Financial Statements as per 31 December Press Conference

Transcription

1 Annual Financial Statements as per 31 December Press Conference Munich, 26 March 2015 Klaus Josef Lutz, CEO Andreas Helber, CFO

2 Agenda. 1. Financial Year Performance of the Segments 3. Group Financials 4. Outlook for March 2015 Page 2

3 Financial Year March 2015 Page 3

4 Financial Year 2014 Highlights (strategic) GROUP Internationalisation of core businesses continued Entry into digitalisation Placement of a bonded loan (EUR 383 million) oversubscribed multiple times Further dividend increase AGRICULTURE Expansion into new agricultural markets in Europe (trading of products and input resources) Acquisitions: 40% Bohnhorst, 100% Apollo, 100% PC-Agrar JVs with Unifrutti (50:50) and Barloworld (50:50) Disinvestment: RKW Süd Restructuring of fruit business in Germany ENERGY Takeovers of Martifer US & HS Kraft (Sweden) Extension of the value chain through innovative service offerings (Beegy) BUILDING MATERIALS Restructuring of building materials trading Sale of loss-making locations in NRW & RPF 26 March 2015 Page 4

5 Financial Year 2014 Highlights (operational) AGRICULTURE Volatile grain price development; Russian import embargo affects apple business and grain prices Limited trading possibilities owing to reticence of market participants in Q2 & Q3 Second global bumper harvest in a row Significant catching-up effects in Q4 ENERGY Multi-year lows in crude oil and heating oil prices Renewable Energy: - retrospective subsidy reduction in Spain - strongest project business since the founding of BayWa r.e. BUILDING MATERIALS Building Materials stabilizes above prior year's level after strong start into the year 26 March 2015 Page 5

6 Financial Year 2014 Summary of the Group s Key Financials Revenues in EUR bn Operating EBIT in EUR m Overview % % Price-induced revenue decline to EUR 15.2 billion (Δ 13/14: EUR million / -4.7%) Operating EBIT of EUR million achieved on the back of the strong closing quarter (Δ 13/14: EUR -9.2 million / -4.7%) Dividend in EUR +6.7% Earnings per Share (after minority interest) in EUR -28.8% Dividend increase to EUR 0.80 per share; payout ratio of 39.4% (after minority interest)* * Earnings per share at EUR 2.03 (negative tax ratio of -3.3% i.a. owing to loss carryforwards) * Subject to approval by the Annual General Meeting of Shareholders 26 March 2015 Page 6

7 Financial Year 2014 Expansion progress Operating EBIT contribution in EUR m 200 Expansion (companies acquired from 2009 onwards) Core region (companies consolidated back in 2008) Expansion percentage 20.8% 18.4% 30.1% 44.4% 43.6% 26 March 2015 Page 7

8 Performance of the Segments 26 March 2015 Page 8

9 Agriculture Segment 2014 Seed Fertilisers Crop protection Grain Feedstuff Agricultural equipment Fruit 26 March 2015 Page 9

10 Agriculture Segment 2014 Market developments: Products Products World grain balance (excluding rice; March 2015) Global production of grain in 2014/15 amounting to 2 billion tons outperforms previous year's record result; German grain harvest posts 51.9 million tons (+9% y/y) In million tons Inventory change Production Consumption Global oilseed production reports even stronger growth: production of 665 million tons in 2014/15 5% higher y/y Despite steady increase in consumption, significant growth in inventories of grain and oilseeds (grain: highest level since 2000/01; oilseeds: record high) Consequence of bumper harvests and high inventories: prices drop until September 2014 to lowest level since four years Reaction of market participants: hesitant buying behaviour of processors in expectation of prices falling further; farmers temporarily unwilling to sell the harvest in anticipation of prices rising again Recovery of grain prices starting in October 2014; strong collection & storage business and significant improvement of marketing opportunities in Q4 Source: USDA; 2014/15 forecast 26 March 2015 Page 10

11 Agriculture Segment 2014 Price developments: Products MATIF and CBoT wheat price in 2014 (front contract) MATIF Wheat CBoT Wheat Ukraine / Crimea Record Crops Crop Worries; Russian Export Restrictions Prices in /t Source: HGCA 26 March 2015 Page 11

12 Agriculture Segment 2014 Market developments: Resources, Fruit, Equipment Input resources Fruit Agri-Equipment Strong demand for fertiliser in H1; in 2014 market growth for fertiliser 8.1% y/y Fertiliser price development relatively stable Steady demand for seed Crop protection: early start to the season in 2014 generates sales growth of 3-4% Apple production in the EU: 11.9 million tons; +9% y/y Apple production NZ: 488,000 t; -8% y/y Russia's export embargo causes a strong decline in exports; market opportunities in Asia Polish fruits increasingly flooding the EU market and exerting strong price pressure Growing reluctance of farmers to invest; exception: stabling equipment New tractor registration figures in Germany below previous year s level (-4.5%) In Q4 slump in European demand for tractors; many manufacturers slash production Growth trend digitalisation 26 March 2015 Page 12

13 Agriculture Segment 2014 Revenues and EBIT as against previous year Agricultural Trade In EUR m 8, % 8,230.7 Revenues % 65.1 EBIT Revenues: 13/14 EUR million EBIT: 13/14 EUR million Price-induced downturn in revenues Margin pressure in grain & oilseed trading Sales growth fertilizer and crop protection due to early start to the saison; stable seed business 26 March 2015 Page 13

14 Agriculture Segment 2014 Revenues and EBIT as against the previous year Agricultural Equipment Fruit In EUR m +1.3% in EUR m -0.7% 1, , Revenues Revenues +6.1% +18.5% EBIT EBIT Revenues: 13/14 EUR million EBIT: 13/14 EUR +1.3 million Revenues reach new record level Increase in the sale of stabling equipment High level of service utilisation New & used machinery: sales below record level in 2013 Revenues: 13/14 EUR -3.8 million EBIT: 13/14 EUR +4.0 million Expansion in international trading activities unable to compensate for the decline in fruit prices Good T&G sales performance compensates for margin pressure in Germany Special effect through Apollo takeover 26 March 2015 Page 14

15 Agriculture Segment 2014 Key Financials Income Statement Agriculture in EUR m /14 (%) Revenues 3, , , , , % EBITDA % % of Revenues 2.9% 2.7% 2.8% 1.7% 1.7% EBIT % % of Revenues 1.8% 1.8% 1.8% 1.1% 1.1% EBT % % of Revenues 1.1% 1.1% 1.0% 0.8% 0.8% 26 March 2015 Page 15

16 Energy Segment 2014 Fuels Heating oil Lubricants Solid biofuels BayWa r.e. 26 March 2015 Page 16

17 Energy Segment 2014 Market developments Market trends Multi-year comparison heating oil prices Crude oil and heating prices drop to multi-year low in H2/2014 Decline of 15.8% in heating oil sales in 2014 due to the mild weather throughout the year Strong economy in Germany: fuel & lubricants sales higher y/y (+3.7% and +0.3% respectively) Development of heating oil prices in Germany ( ) Global renewable energies boom: Investments of USD 310 billion in 2014 (+16% y/y); growth in Asia & USA; decline in EU PV installation at global record high (approx. 40 GW) in 2014: China, Japan & USA as drivers Global installation of wind energy capacity almost 44 GW (+14% y/y); 4.4 GW newly installed in Germany 2.0 amendment to German Renewable Energies Act (EEG) enters into force in August 2014 Source: TECSON, as of March March 2015 Page 17

18 Energy Segment 2014 Revenues and EBIT as against the previous year Conventional Energy Renewable Energy in EUR m -10.2% in EUR m +61.8% Revenues 3, ,702.8 Revenues EBIT % 5.8 EBIT % Revenues: 13/14 EUR million EBIT: 13/14 EUR -4.8 million Price- and volume-induced decline in revenues Heating business below year-earlier results due to mild weather Increase in the sale of lubricants; fuel stable Weak heating oil business in Austria Revenues: 13/14 EUR million EBIT: 13/14 EUR +2.0 million Sharp increase in revenues due to expansion in project and service business PV trade: sales generally stable despite EU market consolidation Income from the increase in project sales (wind, solar) secures result for BayWa r.e. 26 March 2015 Page 18

19 Energy Segment 2014 Key Financials Income Statement Energy in EUR m /14 (%) Revenues 2, , , , , % EBITDA % % of Revenues 1.8% 1.7% 2.0% 2.2% 2.1% EBIT % % of Revenues 1.3% 1.1% 1.2% 1.3% 1.2% EBT % % of Revenues 1.1% 0.7% 0.7% 0.9% 0.9% 26 March 2015 Page 19

20 Building Materials Segment 2014 Building Materials 26 March 2015 Page 20

21 Building Materials Segment 2014 Market developments Market trends Sentiment in German Construction Sector Weather conditions enable early start to the season with building activities through to yearend 2014; high capacity utilisation Construction Industry Low interest rate environment and sound budgetary position support German construction sector Growth loses momentum over the course of the year; summer months determined by slowdown in building activities due to holiday period Increase of 3.3% (real) in construction investments in 2014 Residential construction as a growth driver (+3.5%), mostly urban multi-floor residential building Assessment present state of business Expectation business development Decline in energetic refurbishment Source: ifo-institut; as of March March 2015 Page 21

22 Building Materials Segment 2014 Revenues and EBIT as against the previous year Building Materials Segment In EUR m Revenues: EBIT: 1, % 1, % 30.7 Building Materials Building Materials * * Revenues: 13/14 EUR million Revenue drop due to disposal NRW & RPF: approx. EUR 190 million Weather conditions enable early start to the building season Following a strong H1, slowing momentum in H2 EBIT: 13/14 EUR +3.7 million High-margin renovation and refurbishment business in decline Sales growth in construction and civil engineering product portfolios * 2014 excluding the activities of sold locations in NRW and Rhineland-Palatinate (transfer of ownership in Q2) 26 March 2015 Page 22

23 Building Materials Segment 2014 Key Financials Income Statement Building Materials in EUR m * 13/14 (%) Revenues 1, , , , , % EBITDA % % of Revenues 2.5% 3.2% 3.0% 2.3% 2.7% EBIT % % of Revenues 1.0% 1.8% 2.0% 1.6% 2.0% EBT % % of Revenues 0.4% 1.2% 1.5% 1.2% 1.8% * 2014 excluding the activities of sold locations in NRW and Rhineland-Palatinate (transfer of ownership in Q2) 26 March 2015 Page 23

24 Group Financials 26 March 2015 Page 24

25 Group Financials Revenues and EBIT as against the previous year Revenues EUR 15,201.8 million (Δ 13/14: EUR million / -4.7%) in EUR m 15, % 15,201.8 Price-induced decline in revenues from Agriculture Decline in conventional energy due to falling oil prices Portfolio streamlining leads to downturn in revenues from Building Materials BayWa r.e. achieves sharp increase in revenues FY 2013 FY 2014 EBIT EUR million (Δ 13/14: EUR million / -33.8%) in EUR m % Pressure on margins due to unusual market developments in the Agriculture Segment 2013 comprises special items from the disposal of 3 real estate portfolios Special items in 2014: i.a. restructuring costs from portfolio streamlining Building Materials FY March FY 2014 Page 25

26 Group Financials Final quarter as against the previous year Revenues EUR 3,759.5 million (Δ 13/14: EUR million / -1.1%) in EUR m 3, % 3,759.5 Price level of grain and heating oil below previous year High collection, storage and selling volumes of grain and oilseeds Mild weather leads to decline in heating oil sales Sharp revenue increase BayWa r.e. Q4/2013 Q4/2014 EBIT EUR 72.3 million (Δ 13/14: EUR million / +63.4%) in EUR m +63.4% 72.3 Strong closing quarter in agri-trading and equipment BayWa r.e. benefits from project sales in Q4, i.a. solar park La Coste (57.4 MW), wind farm Anderson (14.9 MW) T&G takeover of Apollo delivers special effect 44.2 Q4/ March 2015 Q4/2014 Page 26

27 Group Financials Key Financials Income Statement Group in EUR m /14 (%) Revenues 7, , , , , % EBITDA % % of Revenues 2.9% 2.6% 2.9% 2.3% 1.7% EBIT % % of Revenues 1.6% 1.6% 1.8% 1.4% 1.0% EBT % % of Revenues 1.1% 1.0% 1.2% 1.1% 0.6% Consolidated net income % Tax rate 23.3% 28.6% 3.8% 27.9% -3.3% Share of minority interest % as % of net income 24.6% 25.8% 18.1% 19.0% 22.4% Share of owners of parent company % as % of net income 75.4% 74.2% 81.9% 81.0% 77.6% Earnings per share (EPS) in EUR % 26 March 2015 Page 27

28 Group Financials Key Financials Balance Sheet Group in EUR m /14 (%) Total assets 3, , , , , % Equity , , , , % Equity ratio 30.3% 26.6% 24.2% 23.6% 20.5% Equity ratio adjusted* 27.1% 26.1% 24.5% in EUR m /14 (%) Non-current assets 1, , , , , % Current assets 1, , , , , % Provisions % Current financial liabilities , , % Non-current financial liabilities % * Adjusted for the reserve formed since 2012 for actuarial profits and losses 26 March 2015 Page 28

29 Group Financials Key Financials Cash Flow Statement Group in EUR m /14 (%) Consolidated net income % Cash flow from operating activities > -100% Cash flow from investing activities > -100% Cash flow from financing activities > 100% Cash & cash equivalents at the start of the period % Cash & cash equivalents at the end of the period % 26 March 2015 Page 29

30 Other Activities March 2015 Page 30

31 Other Activities 2014 EBIT as against the previous year in EUR million > +100% 82.7 Revenues 9.7 > -100% 26.3 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 includes i.a. restructuring costs Building Materials (in 2013 special effect from real estate disposals) 26 March 2015 Page 31

32 Outlook for March 2015 Page 32

33 Outlook for 2015 Outlook 2015 AGRICULTURE AGRICU LTURE Strong post-harvest collection and storage business expected Increase in the volumes of grain and oilseeds through new trading companies in Italy, Spain and Romania Input resources at high year-earlier level High orders on hand in agri-equipment; slowdown in momentum forecasted for H2 Apollo takeover opens opportunities in international Apple trading (Asia) E ENERGY ENERGY No sustainable recovery in oil prices expected; heating oil market remains in decline Strong economy raises expectations of stable demand for fuel and lubricants Projects with output capacity > 300 MW planned in 2015 (wind, solar) Entry into the solar project business in the USA generates additional profit potential Ongoing consolidation in the PV trade in EU; expansion of market shares possible BUILD. MAT. BUIL DING MAT ERIA LS Modest construction forecast for 2015: +2% revenues in construction sector Recovery in energetic refurbishment anticipated High order book levels of construction companies likely to promote performance Expansion planned for own brand product range Strengthening B2C sales structure and e-commerce 26 March 2015 Page 33

34 Thank you for your attention!