Annual Financial Statements as per 31 December 2019 Analysts ’ Conference Call Munich, 27 March 2020 Prof. Klaus Josef Lutz, CEO Andreas Helber, CFO
Agenda 1. Financial Year 2019 2. Performance of the Segments 3. Group Financials 4. Operational Outlook for FY 2020 Appendix 27 March 2020 Page 2
Financial Year 2019 Prof. Klaus Josef Lutz 27 March 2020 Page 3
Financial Year 2019 Highlights 1 Operative earnings increase achieved in a challenging market environment Settlement EUR 68.6 million with antitrust authorities concluded; official liability claim filed Adjustments to the corporate portfolio: - Sale of Tessol filling station business - Sale of Kartoffel Centrum Bayern GmbH - Sale of shares in ahg Autohandelsgesellschaft mbH BayWa r.e.: Ongoing negotiations on accepting a minority shareholder in the context of a capital increase Successful issuance of a green bond (unrated) of EUR 500 million 27 March 2020 Page 4
Financial Year 2019 Revenues EBIT Highlights 2 +2.6% +9.3% 17,059.0 188.4 16,625.7 172.4 Segments’ performance varies: - EBIT growth y/y in the Energy (+ 32.7%) and Building In In Materials segments (+3.2%) EUR m EUR m - Agriculture segment below year-earlier level (-3.5%) 2018 2019 2018 2019 Highest EBIT contribution by BayWa r.e. (EUR 101 million) Earnings burdened in an amount of EUR 68.6 million (crop Dividend Employees protection antitrust fine) nearly compensated through investment disposals +0.05 Euro +4.6% Dividend proposal of EUR 0.95 per share*; corresponds to dividend yield of 3.4% 0.95* 18,831 18,004 0.90 * Subject to approval by the Annual General Meeting of Shareholders 2018 2019 2018 2019 27 March 2020 Page 5
Development of the Group 2019 Multi-year comparison of EBIT 188.4 In EUR m 172.4 171.3 Ø 167.0 158.1 144.7 2015 2016 2017 2018 2019 27 March 2020 Page 6
Development of the Group 2019 Multi-year comparison of EBIT Q4 144.1 In EUR m 111.1 Ø 94.2 80.9 75.5 59.3 2015 2016 2017 2018 2019 27 March 2020 Page 7
Expansion progress Operating EBIT contribution In EUR m Expansion (companies acquired from 2009 onwards) Core region (companies consolidated back in 2008) 300 250 200 150 100 50 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Operating EBIT contribution from expansion in %* 56.2% 54.9% 54.4% 66.1% 65.1% 1.8% 44.9% 43.6% 20.8% 18.5% 30.1% * Without Innovation & Digitalisation Segment 27 March 2020 Page 8
Energy Segment Key Figures 2019 Revenues EBIT Employees 4,474.3 127.4 2,812 EUR m EUR m (+12.7% y/y) (+32.7% y/y) (+16.8% y/y) Operational Sold Output Volume Wood Management Capacity Pellets 8.3 GW 911.6 MW +24.3% y/y (LY: 5.7GW) (LY:453 MW) 27 March 2020 Page 9
Energy Segment 2019 Market Developments Renewable Energies Conventional Energy Average heating oil price in Germany 2 Global capacity installation in 2019 and forecast for 2020 1 In cent per liter In GW Onshore wind energy Solar 2018 2019 90 250 200 80 150 137.5 70 121.0 100 108.0 60 50 69.4 55.3 45.1 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 2020 Sale of heating oil 3 and wood pellets 4 in Germany in 2019 Global investments in renewable energies in 2019 1 Heating oil in tsd. tons Wood pellets in tsd. tons Onshore wind energy Solar +14.1% +16.8% EUR 112.8 EUR 136.4 15,129 2,820 13,256 2,415 bn bn (-4% y/y) (+4% y/y) 2018 2019 2018 2019 Source: 1) BNEF; 2) Statista; 3) BAFA; 4) depv 27 March 2020 Page 10
Energy Segment 2019: Renewable Energies business unit Revenues and EBIT as against the previous year Renewable Energies In EUR m +29.1% +39.3% 1,975.3 1,530.2 101.0 72.5 Revenues EBIT 2018 2019 2018 2019 Revenues: ∆ 18/19 EUR +445.1 million EBIT: ∆ 18/19 EUR +28.5 million Increase in revenues and profit through project sales and strong growth in solar trade business Significant growth in project business: total of 23 wind and solar parks with an output of 911.6 MW sold, including 4 project rights (previous year: 453.0 MW); BayWa r.e. takes on new maintenance and operation contracts (e.g. maintenance of 230 wind turbines with an overall output of around 600 MW for Siemens Gamesa) Uptrend in PV components trading due to lower production costs leads to greater competitiveness: sold output of PV modules up +70% y/y Growth in the service business to more than 8.3 GW (+46% y/y) 27 March 2020 Page 11
Energy Segment 2019: Renewable Energies business unit BayWa r.e.: Earnings development since 2009 EBIT contribution 101.0 In EUR m CAGR +32.4% 72.5 67.3 66.6 61.8 36.5 34.5 32.5 27.1 21.1 6.1 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 27 March 2020 Page 12
Energy Segment 2019: Renewable Energies business unit Cooperation between AB InBev and BayWa r.e. Largest Pan-European corporate solar power deal in history AB InBev breweries soon with 100% renewable electricity 250 GWH solar Covering 14 10-year Virtual power generated each AB InBev’s breweries Power Purchase year for InBev’s and 50 brands Agreement breweries Goal: 100% purchased electricity from renewable sources by 2025 New solar site in Spain funded and developed by BayWa r.e by March 2022 Until then BayWa r.e. provides AB InBev with 75 GWH from wind farm 27 March 2020 Page 13
Energy Segment 2019: Conventional Energy business unit Revenues and EBIT as against the previous year Conventional Energy In EUR m +2.5% +12.3% 2,499.0 26.4 2,438.3 23.5 Revenues EBIT 2018 2019 2018 2019 Revenues: ∆ 18/19 EUR +60.7 million EBIT: ∆ 18/19 EUR + 2.9 million Volume-induced increase in revenues due to price hedging purchases Increase in earnings due to healthy margins in the heating oil and fuel business Volume growth in heating oil (+7.1% in total y/y; Germany around +30% y/y) and wood pellets (+24.3% y/y) Decline in the sale of fuels (-9.9% y/y) and lubricants (-3.7% y/y) 27 March 2020 Page 14
Financials Energy Segment Income Statement ∆18/19 (%) in EUR m 2015 2016 2017 2018 2019 Revenues 3,264.2 2,976.0 3,594.7 3,968.5 4,474.3 12.7% EBITDA 114.8 113.7 121.3 128.4 176.7 37.6% % of Revenues 3.5% 3.8% 3.4% 3.2% 3.9% EBIT 77.2 83.1 85.0 96.0 127.4 32.7% % of Revenues 2.4% 2.8% 2.4% 2.4% 2.8% EBT 65.8 69.3 69.0 75.2 87.5 16.4% % of Revenues 2.0% 2.3% 1.9% 1.9% 2.0% 27 March 2020 Page 15
Agriculture Segment Key Figures 2019 Revenues EBIT Employees 10,857.5 96.6 10,580 EUR m EUR m (-1.4% y/y) (-3.5% y/y) (+1.5% y/y) Grains and Tractor sales Fruit Oilseeds New 380,550 tons 32.2 4.617 number m tons (+8.2% y/y) (-4.1% y/y) (-2.5% y/y) 27 March 2020 Page 16
Agriculture Segment in 2019 Market Developments: Products Global grain balance (excl. rice) Global grain production 2018/19 of 2.1 million tons at previous year’s In millions of tons level; consumption up +1.0% y/y Ending Stocks Production Consumption 2750 135 German grain harvest 2019 of 44.7 million tons up by around +18.0% y/y; slightly below average in a multi-year comparison 105 2250 2124 2171 2127 Increase of 1.9% y/y expected for global grain production 2019/20 2167 1998 1996 2041 75 Oilseed meal production 2018/19 of 333 million tons up +0.5% y/y; soy 64 59 1750 53 meal of almost 234 million tons up +0.6% y/y 45 Expected increase of 2% y/y overall in oilseed meal 2019/20; soy meal 29 1250 likely to rise by 2.3% y/y 7 15 750 -15 -11 Price trend in 2019: Good supply situation worldwide causes commodity prices to stagnate -29 250 -45 Forecast 2020: 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20* Current demand likely to result in stable prices Source: USDA; * Forecast 2019/20, as of February 2020 27 March 2020 Page 17
Agriculture Segment 2019: BAST business unit Revenues and EBIT as against the previous year BAST In EUR m -7.8% -38.6% 5,286.8 31.1 4,875.8 19.1 Revenues EBIT 2018 2019 2018 2019 Revenues: ∆ 18/19 EUR -411.0 million EBIT: ∆ 18/19 EUR -12.0 million Volume and price induced decline in revenues and EBIT Decline of 1.6 million tons in the trading volume of grains and oilseed meals to 25 million tons mainly due to: Discontinuation of milling grains business with Iran Weak demand for agricultural products (especially in UK) due to the mild winter and high inventory levels US/China trade conflict burdens soya business with excess supply of US soya in the EU market 27 March 2020 Page 18
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