Annual Financial Statements as per 31 December 2019 Analysts - - PowerPoint PPT Presentation

Annual Financial Statements as per 31 December 2019 Analysts’ Conference Call

Munich, 27 March 2020

• Prof. Klaus Josef Lutz, CEO

Andreas Helber, CFO

Agenda

27 March 2020 Page 2

• 1. Financial Year 2019
• 2. Performance of the Segments
• 3. Group Financials
• 4. Operational Outlook for FY 2020

Appendix

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 Highlights 2

2019 2018 16,625.7 17,059.0

EBIT

+9.3%

2018 188.4 2019 172.4  Segments’ performance varies:

• EBIT growth y/y in the Energy (+ 32.7%) and Building

Materials segments (+3.2%)

• Agriculture segment below year-earlier level (-3.5%)

 Highest EBIT contribution by BayWa r.e. (EUR 101 million)  Earnings burdened in an amount of EUR 68.6 million (crop protection antitrust fine) nearly compensated through investment disposals  Dividend proposal of EUR 0.95 per share*; corresponds to dividend yield of 3.4%

* Subject to approval by the Annual General Meeting of Shareholders

Employees

+4.6%

18,004 2018 2019 18,831

Dividend

+0.05 Euro

2018 0.95* 2019 0.90

In EUR m

Revenues

+2.6%

In EUR m 27 March 2020 Page 5

Development of the Group 2019 Multi-year comparison of EBIT

27 March 2020 Page 6

2019 2015 2016 2017 2018 Ø 167.0 158.1 144.7 171.3 172.4 188.4 In EUR m

Development of the Group 2019 Multi-year comparison of EBIT Q4

27 March 2020 Page 7

2017 2015 2016 2018 2019 Ø 94.2 75.5 59.3 80.9 144.1 111.1 In EUR m

27 March 2020 Page 8

Expansion progress

* Without Innovation & Digitalisation Segment

50 100 150 200 250 300 2009 2014 2017 2010 2011 2013 2012 2018 2016 2015 2019

Operating EBIT contribution

Expansion (companies acquired from 2009 onwards) Core region (companies consolidated back in 2008) Operating EBIT contribution from expansion in %*

1.8% 20.8% 18.5% 30.1% 44.9% 43.6% 56.2% 54.9% 54.4% 65.1%

In EUR m

66.1%

Energy Segment

Key Figures 2019 Revenues

4,474.3

EUR m

(+12.7% y/y)

EBIT

127.4

EUR m

(+32.7% y/y)

Employees

2,812

(+16.8% y/y)

Sold Output Capacity

911.6 MW

(LY:453 MW)

Volume Wood Pellets

+24.3% y/y

Operational Management

8.3 GW

(LY: 5.7GW)

27 March 2020 Page 9

50 60 70 80 90 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019

Energy Segment 2019 Market Developments

27 March 2020 Page 10

Renewable Energies

Source: 1) BNEF; 2) Statista; 3) BAFA; 4) depv

Global investments in renewable energies in 20191 Global capacity installation in 2019 and forecast for 20201 Onshore wind energy

EUR 112.8

bn

(+4% y/y)

In GW

Average heating oil price in Germany2

In cent per liter

Sale of heating oil3 and wood pellets4 in Germany in 2019

Heating oil in tsd. tons

Conventional Energy

Solar

EUR 136.4

bn

(-4% y/y)

2018 13,256 2019 15,129 +14.1%

Wood pellets in tsd. tons

2019 2,415 2,820 +16.8% 2018 45.1 55.3 69.4 108.0 121.0 137.5 50 100 150 200 250 2018 2019 2020 Onshore wind energy Solar

Renewable Energies

Energy Segment 2019: Renewable Energies business unit Revenues and EBIT as against the previous year

27 March 2020 Page 11

• 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)

1,530.2 2018 Revenues 2019 1,975.3 +29.1% In EUR m 2018 2019 EBIT 72.5 101.0 +39.3%

27 March 2020 Page 12

Energy Segment 2019: Renewable Energies business unit BayWa r.e.: Earnings development since 2009

EBIT contribution

101.0

2009 2013 2010 2014 2011 2012 2015 2016 2017 36.5 2018 2019 6.1 21.1 27.1 32.5 34.5 61.8 67.3 66.6 72.5 CAGR

+32.4%

In EUR m

Energy Segment 2019: Renewable Energies business unit Cooperation between AB InBev and BayWa r.e.

Page 13

AB InBev breweries soon with 100% renewable electricity

Covering 14 AB InBev’s breweries and 50 brands

10-year Virtual

Power Purchase Agreement

250 GWH solar

power generated each year for InBev’s breweries

Largest Pan-European corporate solar power deal in history

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

Conventional Energy

Energy Segment 2019: Conventional Energy business unit Revenues and EBIT as against the previous year

27 March 2020 Page 14

• 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)

23.5 2018 26.4 2019 EBIT +12.3% 2018 2019 Revenues 2,438.3 2,499.0 +2.5% In EUR m

Financials Energy Segment Income Statement

27 March 2020 Page 15

in EUR m 2015 2016 2017 2018 2019 ∆18/19 (%) 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%

Agriculture Segment

Key Figures 2019 Revenues

10,857.5

EUR m

(-1.4% y/y)

EBIT

96.6

EUR m

(-3.5% y/y)

Employees

10,580

(+1.5% y/y)

Grains and Oilseeds

32.2

m tons

(-2.5% y/y)

Fruit

380,550

tons

(+8.2% y/y)

Tractor sales New

4.617 number

(-4.1% y/y)

27 March 2020 Page 16

Agriculture Segment in 2019 Market Developments: Products

27 March 2020 Page 17

Global grain balance (excl. rice)

Source: USDA; * Forecast 2019/20, as of February 2020

In millions of tons

Price trend in 2019:

• Good supply situation worldwide causes commodity prices to stagnate

Forecast 2020:

• Current demand likely to result in stable prices
• Global grain production 2018/19 of 2.1 million tons at previous year’s

level; consumption up +1.0% y/y

• German grain harvest 2019 of 44.7 million tons up by around +18.0%

y/y; slightly below average in a multi-year comparison

• Increase of 1.9% y/y expected for global grain production 2019/20
• Oilseed meal production 2018/19 of 333 million tons up +0.5% y/y; soy

meal of almost 234 million tons up +0.6% y/y

• Expected increase of 2% y/y overall in oilseed meal 2019/20; soy meal

likely to rise by 2.3% y/y

64 59 29 53 7

• 29
• 11

1998 2041 1996 2171 2124 2127 2167

• 45
• 15

15 45 75 105 135 250 750 1250 1750 2250 2750 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20* Ending Stocks Production Consumption

Agriculture Segment 2019: BAST business unit Revenues and EBIT as against the previous year

27 March 2020 Page 18

• 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

31.1 19.1 2018 2019 EBIT

• 38.6%

2019 2018 Revenues 5,286.8 4,875.8

• 7.8%

BAST

In EUR m

Agriculture Segment 2019 Market development: Global Produce

27 March 2020 Page 19

Apfelpreise in Deutschland3

Source: 1) Destatis; 2) WAPA; 3) EU apple dashboard

Apple harvest development in 2019

In millions of tons

2018 1.2 2019 1.0

• 16.8%

Germany1

In millions of tons

2018 2019 0.58 0.55

• 3.8%

New Zealand2

In euro cent / kilo

• In line with expectations, apple harvest in Germany smaller than the record

volume of previous year

• Loss of plums, damsons, cherries and pears due to drought
• NZ apple harvest yields small fruit sizes and poorer quality due to late frosts
• Good supply of apples from harvest in previous year results in significant price

declines

• At the start of the new harvest (as from August 2019), rising prices due to

shorter supply (above the five-year average)

55 51 51 49 49 45 49 50 51 49 42 52 50 49 50 50 50 51 51 52 54 56 49 51 49 48 49 30 35 40 45 50 55 60 65 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 2018/19 2019/20 5-year average

Agriculture Segment 2019: Global Produce business unit Revenues and EBIT as against the previous year

27 March 2020 Page 20

• Revenues: ∆ 18/19 EUR +36.0 million
• EBIT: ∆ 18/19 EUR +9.7 million
• Revenues slightly higher y/y due to steady growth in sales volumes
• Overall, fruit sales in 2019 grew by +8% y/y to 380,550 tons

 Positive sales trend in soft and stone fruit (+64% y/y), tropical fruit (+47% y/y) and fruit vegetables (+21% y/y)  Decline in the sale of dessert pome fruit (-5% y/y)

• Earnings benefits from extraordinary income through real estate disposals

2018 2019 EBIT 27.2 36.9 +35.7% 2019 2018 Revenues 807.9 843.9 +4.5%

Global Produce

In EUR m

Agriculture Segment 2019 Market development: Inputs

27 March 2020 Page 21

Fertiliser prices of urea & KAS in euros1

Source: 1) Agrarzeitung; 2) Destatis

= Granular urea, Baltic ports = KAS, Baltic ports

Decline in operating resources sales in 20192

• Directives and dry weather cause sales to drop in

Germany:

• Fertiliser -6% y/y
• Crop protection -8% y/y
• Seed slightly lower y/y
• Reduction in cultivation area for rapeseed also

contributes to the slowdown in demand for seed and crop protection

• Feedstuff down 0.3% y/y due to lower livestock levels

Agriculture Segment 2019: Agri Trade & Service Revenues and EBIT as against the previous year

27 March 2020 Page 22

• Revenues: ∆ 18/19 EUR +155.6 million
• EBIT: ∆ 18/19 EUR +2.6 million
• Increase in revenues through higher grain trading volume (+16.1% y/y; poor harvest in previous year)
• Sale of operating resources in Germany below year-earlier level:

 Decline in the demand for fertilisers due to poor weather conditions and Fertiliser Ordinance; in addition, higher prices affect demand in 2H  Weak rapeseed harvest and lower incidence of disease due to the weather conditions burden sales of crop protection; seed sales below previous year (-6% y/y)

• Restructuring measures taking effect; around EUR 3 million restructuring costs included in earnings

2019 2018 Revenues 3,298.8 3,454.4 +4.7%

Agri Trade & Service

2018 2019 EBIT 5.2 7.8 +50.0% In EUR m

Agriculture Segment 2019 Market development: Agricultural Equipment

27 March 2020 Page 23

Source: 1) VDMA; 2) Bildquelle: Erwin Koch, Hessischer Bauernverband e.V.

Agricultural equipment sales in Germany In EUR bn1 Sentiment in the agricultural industry reached its lowest level at the end of 2019 since three and a half years2

Demand weakens in 2019 at a high level

• Earnings and income situation of German farmers deteriorated in 2019, compared with

the two previous very good years

• Capital expenditure on agricultural machinery likely to match the previous year’s level in

1H2020

New registrations

• f tractors in

Germany1

2018 2019 8.4 8.6

• 2.3%

2018 28,979 2019 27,670 +4.7%

Number

Agricultural Equipment

Agriculture Segment 2019: Ag. Equipment business unit Revenues and EBIT as against the previous year

27 March 2020 Page 24

• Revenues: ∆ 18/19 EUR +61.0 million
• EBIT: ∆ 18/19 EUR -3.8 million
• Sales growth due to positive performance of used machinery and service business
• New machinery sales declined by -4.1% y/y; used machinery sales +10.0% y/y
• Growth in the service business due to higher sales figures in past years
• Burden on operating result due to higher costs from collective wage agreements, raising personnel capacities in the service business and advertising expenses

36.6 2018 2019 EBIT 32.8

• 10.4%

Revenues 2018 2019 1,622.4 1,683.4 +3.8% In EUR m

Financials Agriculture Segment Income Statement

27 March 2020 Page 25

in EUR m 2015 2016 2017 2018 2019 ∆18/19 (%) Revenues 10,149.5 10,884.5 10,836.5 11,015.9 10,857.5

• 1.4%

EBITDA 143.8 125.6 141.7 159.6 188.2 17.9% % of Revenues 1.4% 1.2% 1.3% 1.4% 1.7% EBIT 90.1 70.1 82.1 100.1 96.6

• 3.5%

% of Revenues 0.9% 0.6% 0.8% 0.9% 0.9% EBT 52.8 31.8 47.7 63.1 56.1

• 11.1%

% of Revenues 0.5% 0.3% 0.4% 0.6% 0.5%

Building Materials Segment

Key Figures 2019 Revenues

1,702.8

EUR m

(+5.3% y/y)

EBIT

32.1EUR m

(+3.2% y/y)

Employees

4,371

(+3.8% y/y)

Construction Equipment

+18.7% y/y

Civil Engineering

+9.8% y/y

27 March 2020 Page 26

Sites

203

(LY: 200)

Building Materials Segment 2019 Market Developments

Page 27

Building permissions in Germany3 in 1,000 113 194 48

Private homes Apartment buildings Other homes

Source: 1) Destatis; 2) Hauptverband der deutschen Bauindustrie; 3) Heinze Marktbericht, February 2019

Sales in the German construction industry2 in EUR bn Order intake in the construction industry in % vs 20181

December 2019 2019

• 0.5%

+8.2% 348 356

2018 2019

+2.2% Homes completed in Germany2 in 1,000 287 300

2018 2019

+4.5%

27 March 2020

2018 2019

137.2 126.6 +8.4%

Building Materials Segment 2019 Revenues and EBIT as against the previous year

27 March 2020 Page 28

• Revenues: ∆ 18/19 EUR +85.3 million
• EBIT: ∆ 18/19 EUR +1.0 million
• Volume- and price-induced growth in revenues
• Building materials business benefits from sustained good construction activities and mild weather conditions
• EBIT benefits especially from:
• Expansion of high-margin own brand product range
• Networking of digital and stationary sales channels

2018 EBIT 2019 31.1 32.1 +3.2% 2018 2019 Revenues 1,617.5 1,702.8 +5.3% In EUR m

Building Materials

Financials Building Materials Segment Income Statement

27 March 2020 Page 29

In EUR m 2015 2016 2017 2018 2019 ∆18/19 (%) Revenues 1,496.4 1,530.1 1,606.1 1,617.5 1,702.8 5.3% EBITDA 42.2 43.9 45.8 47.2 57.0 20.8% % of Revenues 2.8% 2.9% 2.9% 2.9% 3.3% EBIT 27.4 28.5 30.1 31.1 32.1 3.2% % of Revenues 1.8% 1.9% 1.9% 1.9% 1.9% EBT 17.5 18.8 21.2 22.2 23.4 5.4% % of Revenues 1.2% 1.2% 1.3% 1.4% 1.4%

Innovation & Digitali- sation Segment

Key Figures 2019 Revenues

10.6

EUR m

(-0.6% y/y)

EBIT

• 14.6

EUR m

(-18.7 y/y)

Employees

198

(+8.2% y/y)

Land use NEXT Farming

25% in DE

Visitors FarmFacts stand (Agritechnica)

6,000

Users NEXT Farming

>18,700

27 March 2020 Page 30

Innovation & Digitalisation Segment 2019 Market developments

27 March 2020 Page 31

eBusiness market volume in Germany4

In EUR bn

Source:1) BayWa estimates; 2) Roland Berger; 3) Handelsblatt; 4) behv

Digital Farming

Expected growth in the global market volume for digital farming of at least 10% per year1

Growth forecast for the market volumes of digitalised precision farming2 in EUR bn

CAGR

+13%

Smart Farming as a driver with a productivity increase of up to 30%3

Continued growth in interactive trade and e-commerce in Germany in 2019

2018 2019 e-commerce Interactive trade 85.5 94.0 20.4 65.1 21.4 72.6 +9.9% 2017 2021 5.5 3.4

Innovation & Digitalisation Segment 2019 Revenues and EBIT as against the previous year

27 March 2020 Page 32

• Revenues: ∆ 18/19 EUR -0.1 million
• EBIT: ∆ 18/19 EUR -2.3 million
• Revenues at previous year’s level
• Negative operating result in line with planning through:
• higher marketing expenses due to Agritechnica
• investment in building up development and sales capacities

EBIT 2018 2019

• 12.3
• 14.6
• 18.7%

10.7 2019 2018 Revenues 10.6

• 0.6%

Digital Farming & eBusiness

In EUR m

Group Financials

Andreas Helber

27 March 2020 Page 33

Group Financials Final quarter as against the previous year

27 March 2020 Page 34

• Revenues: ∆ 18/19 EUR +157.0 million
• EBIT: ∆ 18/19 EUR -33,0 million
• Second strongest closing quarter in a multi-year comparison
• Slight increase in revenues driven by the Energy and Building Materials business units
• Decline in EBIT as large solar project Don Rodrigo was sold in the previous year

Q4 2019 Q4 2018 EBIT 144.1 111.1

• 22.9%

Q4 2018 4,429.0 Q4 2019 Revenues 4,586.0 +3.5% In EUR m

Group Financials Income Statement

27 March 2020 Page 35

in EUR m 2015 2016 2017 2018 2019 ∆18/19 (%) Revenues 14,928.1 15,409.9 16,055.1 16,625.7 17,059.0 2.6% EBITDA 288.3 272.6 318.4 315.3 403.0 27.8% % of Revenues 1.9% 1.8% 2.0% 1.9% 2.4% EBIT 158.1 144.7 171.3 172.4 188.4 9.3% % of Revenues 1.1% 0.9% 1.1% 1.0% 1.1% EBT 88.1 69.6 102.4 92.6 79.2

• 14.5%

% of Revenues 0.6% 0.5% 0.6% 0.6% 0.5% Consolidated net income 61.6 52.7 67.2 54.9 61.1 11.3% Tax rate 30.1% 24.3% 34.4% 40.7% 22.8% Consolidated net income per share 1.78 1.52 1.93 1.57 1.74 10.8% Share of minority interest 13.4 21.6 27.9 22.6 24.4 8.0% Share of owners of parent company 48.2 31.1 39.3 32.3 36.7 13.6% Earnings per share (EPS) in EUR1 0.56 0.68 21.4% Earnings per share (EPS) in EUR2 1.39 0.90 1.13 0.92 1.05 14.1%

1) Adjustment in calculating earnings per share of the previous year in accord-ance with IAS 8 (error correction in accordance with IAS 8.42); 2) Earnings per share, excluding hybrid dividend

Group Financials Balance Sheet

27 March 2020 Page 36

In EUR m 2015 2016 2017 2018 2019 ∆18/19 (%) Total assets 6,036.7 6,474.9 6,488.0 7,511.5 8,867.2 18.0% Equity 1,075.9 1,098.3 1,435.5 1,389.1 1,358.6

• 2.2%

Equity ratio 17.8% 17.0% 22.1% 18.5% 15.3% Equity ratio adjusted1 21.4% 20.8% 25.7% 21.6% 20.0% In EUR m 2015 2016 2017 2018 2019 ∆18/19 (%) Non-current assets 2,287.2 2,355.7 2,396.9 2,476.9 3,276.6 32.3% Current assets 3,739.7 4,094.2 4,077.4 5,030.4 5,585.9 11.0% Provisions 913.8 956.2 951.6 929.9 1,084.4 16.6%

Long-term debt (Ci2)

1,223.2 1,269.3 1,042.3 883.1 1,301.1 47.3%

Long-term leasing liabilities

164.5 706.5 > +100%

Short-term debt (Ci2)

1,321.0 1,520.8 1,446.9 2,232.2 2,313.6 3.6%

Short-term leasing liabilities

11.2 68.2 > +100%

1) Adjusted for the reserve formed for actuarial profits and losses; 2) Ci = Credit institute

Group Financials Cash Flow Statement

27 March 2020 Page 37

in EUR m 2015 2016 2017 2018 2019 ∆18/19 (%) Cash earnings 210.5 157.5 168.4 238.7 223.4

• 6.4%

Consolidated net income 61.6 52.7 67.2 54.9 61.1 11.3% Cash flow from operating activities 19.0 208.6

• 170.2
• 452.5
• 212.0

53.1% Cash flow from investing activities

• 143.5
• 123.6
• 60.5
• 243.0
• 149.4

38.5% Cash flow from financing activities 98.7

• 63.0

235.9 710.8 469.6

• 33.9%

Cash & cash equivalents at the start

• f the period

108.4 84.5 104.4 105.5 120.6 14.3% Cash & cash equivalents at the end

• f the period

84.5 104.4 105.5 120.6 229.7 90.5%

Group Financials Adjusted net debt in relation to EBITDA and equity

27 March 2020 Page 38

230 71 900

Readily marketable inventories Liabilities (Credit institute)

in EUR m

Non-Recourse Financing Cash Adjusted net debt

3,615 2,413 403

Adjusted net debt EBITDA

2,413

Adjusted net debt Adjusted equity*

2,413 1,648

Adjusted net debt EBITDA

= 6.0 = 1.46

Adjusted net debt Adjusted Equity*

in EUR m in EUR m

* Adjusted for the reserve formed for actuarial profits/losses in the measurement of pension provisions amounting to approx. EUR 289 million

Group Financials Adjusted net debt in relation to EBITDA and equity (excluding BayWa r.e.)

27 March 2020 Page 39

859

177 900

Liabilities (Credit institute)

in EUR m

Cash Readily marketable inventories Adjusted net debt

1,937 859 265

EBITDA Adjusted net debt Adjusted net debt EBITDA

= 3.2

in EUR m

„Trading group“ leverage

• Retaining the original KPI with the

following adjustments:

• New range for investment grade

trading companies: 3.0 – 4.5

• BayWa r.e not included - financial

liabilities, cash holdings and non- recourse project financing, as well as deduction of BayWa r.e.’s EBITDA

Virtual equity ratio of BayWa r.e. Investor IPP case

Page 40

In EUR million

8,867 9,299 9,555 10,693 10,693 1,359 1,922 2,162 3,069 3,569 2023 2019 2028* 2020 2028** Total assets Equity

* Without additional equity injection of EUR 500 million; ** With additional equity injection of EUR 500 million

Equity ratio: 15.3 % Equity ratio: 20.7 % Equity ratio: 22.6 % Equity ratio: 28.7 % Equity ratio: 33.4 %

27 March 2020

Finanzkennzahlen Konzern Economic Profit 2019

27 March 2020 Page 41

in EUR m Net Operating Profit Ø Invested Capital ROIC WACC Spread Economic Profit Renewable Energies 101.0 1,522.2 6.63% 4.50% 2.13% 32.5 Conventional Energy 26.4

• 3.9

>-100.00% 5.50% >-100.00% 26.6 Energy Segment 59.1 BAST 19.1 581.3 3.29% 4.90%

• 1.61%
• 9.4

Global Produce 36.9 345.9 10.68% 5.90% 4.78% 16.5 Agri Trade & Service 7.8 1,088.6 0.71% 4.60%

• 3.89%
• 42.3

Agricultural Equipment 32.8 579.2 5.66% 5.50% 0.16% 0.9 Agriculture Segment

• 34.2

Building Materials Segment 32.1 429.4 7.48% 5.40% 2.08% 8.9

Other Activities 2019

27 March 2020 Page 42

• Revenues: ∆ 18/19 EUR +0.6 million
• EBIT: ∆ 18/19 EUR -10.6 million
• EBIT consists of administrative costs and consolidation effects

2018

• 42.5

2019 EBIT

• 53.1
• 24.9%

2018 2019 Revenues 13.1 13.7 +4.7% In EUR m

Operational Outlook (ex Coronavirus) for FY 2020

• Prof. Klaus Josef Lutz

27 March 2020 Page 43

Operational Outlook 2020 Energy Segment

27 March 2020 Page 44

• BayWa r.e.’s growth trend is ongoing; projected output of almost 1.2 GW planned for 2020
• Uptrend in sales from trading PV components expected to continue
• Acquisitions in Canada offer additional earnings potential
• By the start of 2020, a major project with AB InBev already signed (10-year electricity supply contracts) and construction of two solar parks
• Stable service business expected

 Capital increase still planned for BayWa r.e through acceptance of a minority shareholder

• Declining crude oil price could keep previous year’s strong demand for heat energy carriers stable
• Trading of lubricants and fuels likely to slow due to the economic situation
• Positive stimulus through the expansion of the new BayWa Mobility Solutions business

 Sale of Tessol filling station business results in a structural decline in earnings in the conventional energy business

Energy Segment 2019: Renewable Energies business unit Project sales BayWa r.e. 2020: almost 1.2 GW

27 March 2020 Page 45

North America

683 MW

Europe

386 MW

Asia

105 MW

Operational Outlook 2020 Agriculture Segment

27 March 2020 Page 46

• One-time charges from the previous year are no longer applicable as trade conflicts weaken
• Good development in the speciality business anicipated (especially Royal Ingredients)
• Global Produce: greater area for cultivating apples (+4%) in New Zealand and the full year inclusion of Freshmax raise the sales volume;

higher earnings margins planned compared with the previous year as fruit quality should be better

• Slight recovery in the collection and sales volumes of grain and oilseed anticipated in Germany
• Cost savings through structural optimisation in domestic grain and operating resources business
• Agricultural Equipment: sideways movement expected at a high level; order intake 2019 higher y/y also due to Agritechnica

Operational Outlook 2020 Building Materials Segment

27 March 2020 Page 47

• High order backlog of the companies in the sector, as well as ongoing construction boom suggest continued strong demand for building materials
• Positive stimulus expected from raising subsidies for refurbishment and renovation of buildings in the context of the Climate Package 2030
• Optimisation of the online range of products likely to drive demand upwards
• Ongoing expansion of higher-margin own brand product range
• Earnings contributions from project business planned (Schrobenhausen, Burgkirchen and Borna near Leipzig)
• Own logistics resources offer competitive advantage with regard to the scarce transport capacities in the construction sector
• Price-induced earnings growth

Thank you for your attention!

Appendix

27 March 2020 Page 49

Energy Segment: GF. Regenerative Energien Capital increase for BayWa r.e. through a private placement

Page 50

Transaction expected to be concluded in the first quarter of 2020

• Capital increase to accelerate implementation of medium- and long-term

projects and to support further investments

• Third party investor gives BayWa r.e. financial scope and allows Company to

exploit additional growth and opportunities

• BayWa AG continues negotiations regarding the admission of an investor as

a minority shareholder (49%) of BayWa r.e., which currently is a 100% subsidiary

10 GW project development pipeline in 18 markets Leading service platform with 7 GW under management #1 PV distributor in Europe and top 3 in the US BayWa r.e. biggest achievements until today BayWa AG Investor

51% 49% Projects Services Solutions BE Solar Projects BE Wind Projects BE Services BE Energy Trading BE Solar Trade BE Energy Solutions Legal entity

Organisational set-up bay Business Segments(3) and Business Entities (6)

Envisaged Transaction structure

BayWa r.e. renewable energy

27 March 2020

Energy Segment Mobility Solutions: CO2-optimised solutions provider

Page 51

Electromobility LNG fuel stations Digital mobility  Fuel card and billing system  Sale of digital products  Project planning and operation of LNG fuel stations  Services and offerings for alternative fuels  Fleet analysis, project planning and operation of charging infrastructure  Maintenance and servicing

27 March 2020

BayWa Share 2019/20

27 March 2020 Page 52

The BayWa share 2020: Price performance compared with the SDAX and DAX

27 March 2020

Source: 1) Frankfurt Stock Exchange; 2) finanzen.net

BayWa

• 6.4%

SDAX2

• 26.9%

DAX

• 25.5%

9,150.33*

closing price

9,866.31*

closing price

€26.45

closing price

25 March 2020: performance & closing prices1

* points

Page 53 60% 70% 80% 90% 100% Jan-20 Jan-20 Jan-20 Feb-20 Feb-20 Mar-20 BayWa

SDAX DAX

High on 12/02/20 BayWa: € 28.80 High on 19/02/2020 DAX: 13,789.00 High on 17/02/2020 SDAX: 13,066.71

BayWa Share 2019

27 March 2020 Page 54

Share price performance (from 01/01/2017 until 25/03/2020)

Further information (Security code 5194062) in EUR Closing price on 31/12/2018 20.60 High (11/12/2019) 29.40 Low (02/01/2019) 20.70 Closing price on 31/12/2019 28.25 Market capitalisation in EUR m As per 31/12/2018 728.8 As per 31/12/2019 994.3 Freefloat Market capitalisation as per 31/12/2019 397.8

0 € 5 € 10 € 15 € 20 € 25 € 30 € 35 € 40 € Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20

BayWa Share 2019

27 March 2020 Page 55

BayWa share profile (31/12/2019) Shareholder structure (31/12/2019) 34.6% 25.1% 40.3%

Bayerische Raiffeisen-Beteiligungs AG Raiffeisen Agrar Invest AG Freefloat

Stock exchanges Frankfurt, Munich, Xetra Segment Official Market / Prime Standard Security code

• no. 519406 and 519400

ISIN DE0005194062 and DE0005194005 Share capital EUR 90,314,398.72 Number of shares 35,279,062 Denomination No-par value shares with an arithmetical portion of € 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)

Investor Relations Contact

Josko Radeljic

Head of Investor Relations T +49 (089) 92 22 3887 F +49 162 2828671 josko.radeljic@baywa.de

Raphaela da Costa von Gehlen

Investor Relations Manager T +49 (089) 92 22 2873 F +49 151 44024858 raphaela.dacostavongehlen@baywa.de

Renate Lorenz

Assistant T +49 (089) 92 22 3881 renate.lorenz@baywa.de

Financial Calendar 2020

ANALYST CONFERENCE CALL FY 2019

27th

March

7th

May ANALYST CONFERENCE CALL Q1

27 March 2020 Page 56

26th

May

ANNUAL GENERAL MEETING, ICM MUNICH

6th

August ANALYST CONFERENCE CALL Q2

André Pierre Wahlen

Junior Investor Relations Manager T +49 (089) 92 22 3879 andrepierre.wahlen@baywa.de

United for success.