Interim Report First Half 2015 Conference Call Munich, 6 August 2015 Klaus Josef Lutz, CEO Andreas Helber, CFO
Agenda 1. Development of the Group in the first half of 2015 2. Development of the Segments in the first half of 2015 3. Outlook for FY 2015 6 August 2015 Page 2
Development of the Group First half 2015 6 August 2015 Page 3
Development of the Group 1-6/2015 Summary Shift effects & start-up costs affect reporting period Agriculture: High grain inventory levels and already concluded future contracts form sound basis for H2 Cefetra significantly improved y/y Start-up costs (ca EUR 5 million) through international grain trade expansion (BAGI) Internationalisation strategy continued (Evergrain, Asparagus T&G, Barloworld, Padberg) BayWa r.e.: Shift effect: EUR 20 million through sale of US wind farm Beethoven (80 MW) Building materials trade with lagged effects Revenues in EUR million -3.5% 7,691.0 7,418.9 EBIT in EUR million 62.1-34.5% 40.7 1-6 2014 1-6 2015 1-6 2014 1-6 2015 6 August 2015 Page 4
Development of the Group 1-6/2015 Revenues and EBIT as against previous year Revenues EUR 7,418.9 m (Δ 14/15: EUR -272.1 m / -3.5 %) in EUR m 7,691.0-3.5% 7,418.9 Price-induced decline in Energy (lower oil price) Reduction in revenues of approx. EUR 180 million due to restructuring Building Materials (NRW) 1-6 2014 1-6 2015 EBIT in EUR m EUR 40.7 m (Δ 14/15 EUR -21.4 m / -34.5 %) 62.1-34.5% Earnings gap in renewables made up through project sale (80 MW) in July 40.7 Seasonal shortfall in building materials trading Agriculture Segment at year-earlier level 1-6 2014 1-6 2015 6 August 2015 Page 5
Development of the Group 1-6/2015 Key Financials Income Statement in EUR m H1 2011 H1 2012 H1 2013 H1 2014 H1 2015 14/15 (%) Revenues 4,586.2 5,131.3 8,272.8 7,691.0 7,418.9-3.5% EBITDA 136.3 147.1 213.8 120.2 97.9-18.6% % of Revenues 3.0% 2.9% 2.6% 1.6% 1.3% EBIT 88.7 91.1 157.2 62.1 40.7-34.5% % of Revenues 1.9% 1.8% 1.9% 0.8% 0.5% EBT 66.5 62.3 130.4 32.8 14.6-55.5% % of Revenues 1.5% 1.2% 1.6% 0.4% 0.2% Consolidated net income 48.7 47.0 99.0 25.4 11.4-55.1% Share of minority interest 11.7 17.5 16.7 12.5 13.3 6.4% as % of net income 24.0% 37.2% 16.9% 49.2% 116.7% Share of owners of parent company 37.0 29.5 82.3 12.9-1.9 > -100% as % of net income 76.0% 62.8% 83.1% 50.8% -16.7% Earnings per share (EPS) in EUR 1.08 0.86 2.39 0.37-0.05 > -100% 6 August 2015 Page 6
Development of the Segments First half 2015 6 August 2015 Page 7
Agriculture Segment 1-6/2015 Seed Fertilisers Crop protection Grain Feedstuff Agricultural equipment Fruit 6 August 2015 Page 8
Agriculture Segment 1-6/2015 Market developments: Products Products World grain balance (excluding rice; July 2015) Grain year 2014/15 closes with record results: global harvest volume > 2 billion tons oil seed harvest of 670 million tons around 5% higher y/y Despite ongoing increase in consumption, grain inventories have grown to their highest level worldwide since 2000/01; oil seed inventories at record high In million tons Unfavorable weather (e.g. El Niño) reduces harvest expectations for 2015/16 to good average level: Global grain production 1,997 million tons (-1%) EU harvest volume at around 300 million tons (-7%) Regional dry weather in Germany: grain volume of around 47 million tons anticipated in 2015 (previous year: 51.9 million tons) Grain prices (Matif) trending down through to end of April; as from mid-may, sharp increase to 205 per ton (wheat) & 194 per ton (maize); easing of late again Source: USDA; 2015/16 forecast 6 August 2015 Page 9
Agriculture Segment 1-6/2015 Market developments: Resources, Fruit, Equipment Input resources Fruit Agri-Equipment Downturn in fertiliser sales compared with strong previous year; storage for fertilisers season 2015/16 commences Fertiliser prices for new season at year-earlier level Distortion in demand for seed through greening: increasing demand for cover crops Dry weather: decline in application of crop protection Apple stocks in Europe from 2014 harvest now reduced Increase in Apple prices in EU growing areas due to dry weather NZ apple harvest in 2015 to produce high volumes: 551,000 tons estimated (+12.9%); strong selling season Lower EU imports of fruit from southern hemisphere y/y Consolidation of the global agricultural equipment markets: EUR 90 billion in sales anticipated (-10%) in 2015 Downturn in German farmers investment plannings Registrations of new tractors in Germany lower y/y (-8.6%) Innovations and new products expected at Agritechnica (digitalisation) 6 August 2015 Page 10
Agriculture Segment 1-6/2015 Revenues and EBIT as against previous year Agricultural Trade In EUR m +1.4% 4,367.3 4,427.0 Revenues 42.4-2.6% 41.3 EBIT 1-6 2014 1-6 2015 Revenues: 14/15 EUR +59.7 million EBIT: 14/15 EUR -1.1 million Increase in grain trading volume generates revenue growth Fertiliser and crop protection below year-earlier level Margin pressure on agri products Start-up costs of approx. EUR 5 million through internationalisation of agri trade 6 August 2015 Page 11
Agriculture Segment 1-6/2015 Revenues and EBIT as against previous year Agricultural Equipment Fruit In EUR m +0.1% in EUR m +10.3% 648.7 649.2 268.2 295.9 Revenues Revenues EBIT 11.2-31.3% 7.7 EBIT 12.7 +26.0% 16.0 1-6 2014 1-6 2015 1-6 2014 1-6 2015 Revenues: 14/15 EUR +0.5 million EBIT: 14/15 EUR -3.5 million Sales growth for new machinery (+1%) and used tractors (+8%) Market decline exerts pressure on selling prices Cost increases (personnel, IT) Revenues: 14/15 EUR +27.7 million EBIT: 14/15 EUR +3.3 million Sales increase T&G Apple inventories from EU bumper harvest in 2014 sold; recent uptrend in prices Good selling proceeds for NZ overseas apples 6 August 2015 Page 12
Agriculture Segment 1-6/2015 Key Financials Income Statement Agriculture in EUR m H1 2011 H1 2012 H1 2013 H1 2014 H1 2015 14/15 (%) Revenues 2,277.3 2,573.7 5,834.9 5,284.2 5,372.1 1.7% EBITDA 90.6 90.3 112.5 92.2 90.3-2.1% % of Revenues 4.0% 3.5% 1.9% 1.7% 1.7% EBIT 71.8 68.5 87.5 66.2 65.0-1.8% % of Revenues 3.2% 2.7% 1.5% 1.3% 1.2% EBT 59.5 50.9 69.4 44.5 40.4-9.2% % of Revenues 2.6% 2.0% 1.2% 0.8% 0.8% 6 August 2015 Page 13
Energy Segment 1-6/2015 Fuels Heating Oil Lubricants Solid Biofuels BayWa r.e. 6 August 2015 Page 14
Energy Segment 1-6/2015 Market developments Market trends Multi-year comparison heating oil prices Following multi-year lows, the price of crude oil rose in Q2 to more than 60 USD/barrel; recently entered a downtrend again Demand for heating oil benefits from lower oil price level Robust economic development in Germany: economic growth of ca 2% anticipated in 2015 Renewable energies investments: global growth drivers, above all, China & USA 200 GW achieved in global solar capacity; around 57 GW of newly installed capacity forecast for 2015, of which 1.3 GW in Germany Global record installation in wind (onshore) of 54 GW anticipated in 2015; Germany with just under 4 GW is EU's largest market High wind power generated (storms) lifts proportion of green electricity in Germany to 32.5% Development of heating oil prices in Germany Source: TECSON, as of July 2015 6 August 2015 Page 15
Energy Segment 1-6/2015 Revenues and EBIT as against previous year Conventional Energy Renewable Energy In EUR m 1,299.2-15.9% 1,092.7 In EUR m 306.3-16.2% 256.8 Revenues Revenues > +100% 3.1 EBIT 16.8 > -100% EBIT 0.7-3.9 1-6 2014 1-6 2015 1-6 2014 1-6 2015 Revenues: 14/15 EUR -206.5 million EBIT: 14/15 EUR +2.4 million Revenue declined through low oil price Strong heating business: increase in volumes of heating oil (+10%) and wood pellets (+13%) Stable fuel sales; lubricants lower y/y Improved trading margins for crude oil-based products Revenues: 14/15 EUR -49.5 million EBIT: 14/15 EUR -20.7 million Sale of US "Beethoven" Wind Farm (80 MW) completed in July (EBIT shift: EUR 20 million) Commissioning of several projects in H1: 4 solar parks (85 MW), 4 wind farms (134 MW) EU solar trade remains in a downtrend; strategic realignment of German activities burdens result 6 August 2015 Page 16
Energy Segment 1-6/2015 Key Financials Income Statement Energy in EUR m H1 2011 H1 2012 H1 2013 H1 2014 H1 2015 14/15 (%) Revenues 1,253.4 1,684.1 1,666.4 1,605.5 1,349.5-15.9% EBITDA 8.6 29.9 33.3 33.5 15.7-53.1% % of Revenues 0.7% 1.8% 2.0% 2.1% 1.2% EBIT 1.0 15.9 17.7 17.5-0.9 > -100% % of Revenues 0.1% 0.9% 1.1% 1.1% -0.1% EBT -1.5 8.5 11.0 9.4-7.6 > -100% % of Revenues -0.1% 0.5% 0.7% 0.6% -0.6% 6 August 2015 Page 17
Building Materials Segment 1-6/2015 Building Materials 6 August 2015 Page 18
Building Materials Segment 1-6/2015 Market developments Market trends From April onwards, upturn in construction activities following a modest start to the 2015 season due to weather conditions Steady improvement in business climate in the construction industry in Q2: ifo index climbs by 3.9 points Overall revenues of companies in the industry has not yet matched the high year-earlier level; +2% anticipated for the full year Ongoing boom in multi-family housing in conurbations: building permits up 3%; building permit figures for one & two family housing and non-residential construction in decline Completion of 260,000 new homes in 2015 Government investment package for infrastructure measures likely to take effect only in 2016; so far no subsidies planned for residential construction Sentiment in German Construction Sector Construction Industry Assessment present state of business Source: ifo-institut; as of June 2015 Expectation business development 6 August 2015 Page 19
Building Materials Segment 1-6/2015 Revenues and EBIT as against previous year Building Materials Segment in EUR m Revenues: EBIT: 724.9-4.9% 689.7 8.0 > -100% Building Materials Building Materials -1.5 1-6 2014 1-6 2015 1-6 2014 1-6 2015 Revenues: 14/15 EUR -35.2 million EBIT: 14/15 EUR -9.5 million Weather-induced revenue decline (exceptionally early start to the season in 2014) Sales of materials for roof and extensions lower y/y Transport business of bulk building materials dominates H1; high-margin warehouse business still subdued Earnings largely deferred to Q3 6 August 2015 Page 20
Building Materials Segment 1-6/2015 Key Financials Income Statement Building Materials in EUR m H1 2011 H1 2012 H1 2013 H1 2014 H1 2015 14/15 (%) Revenues 978.5 813.0 766.4 724.9 689.7-4.9% EBITDA 27.2 14.1 2.3 13.2 3.4-74.2% % of Revenues 2.8% 1.7% 0.3% 1.8% 0.5% EBIT 13.2 4.1-4.2 8.0-1.5 > -100% % of Revenues 1.3% 0.5% -0.5% 1.1% -0.2% EBT 7.0-0.2-7.0 4.4-5.0 > -100% % of Revenues 0.7% 0.0% -0.9% 0.6% -0.7% 6 August 2015 Page 21
Outlook for FY 2015 6 August 2015 Page 22
Outlook for 2015 Outlook 2015 AGRICULTURE AGRICU LTURE Trading activities in core regions benefit from grain price rally in June Moderate harvest estimates for 2015/16 likely to support producer prices Price trend likely to stimulate early purchasing of fertilisers & crop protection High tractor sales in 2012-14 boosts use of services; stimulus through Agritechnica Strong selling season for NZ apples; Apollo takeover pays off EENERGY ENERGY Largest wind farm so far (80 MW) in US sold for around EUR 130 million in July More project sales in second half-year (wind, solar); surge in renewables profit anticipated Positive economic development gives rise to demand expectations for fuel and lubricants No sustainable recovery in oil prices foreseeable BUILD. MAT. Moderate construction forecast for 2015: nominal revenue increase of 2% in Germany BUIL DING MAT ERIA LS Typically strong business in the summer and autumn months still ahead; good order book Higher-margin warehouse business stronger in H2, as experience has shown Improved consumer sentiment in Germany: strengthening B2C sales structure 6 August 2015 Page 23
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.