BayWa Agri Supply &Trade One Team One Culture Business Unit - - PowerPoint PPT Presentation

BayWa Agri Supply &Trade One Team – One Culture

Business Unit Presentation As of October 2019

BayWa Group

Introduction

▪ Founded in Munich in 1923 ▪ Leading trading and services group ▪ Corporate culture based on cooperative roots ▪ Core segments of Agriculture, Energy and Building Materials ▪ Approximately 18,000 employees ▪ Over 3,000 locations in more than 40 countries ▪ Worldwide 313 affiliated companies ▪ Stock listed company

Our Company

The BayWa Group At a Glance

Page 4 BayWa Agri Supply & Trade

Our Executives

• Prof. Klaus Josef Lutz

Chief Executive Officer

▪ Appointed CEO of BayWa in 2008 ▪ Degree in law from the Ludwig- Maximilians-Universität in Munich ▪ Previously served as managing director at Süddeutscher Verlag GmbH

Andreas Helber

Chief Financial Officer

▪ Joined BayWa in 2000 as head

• f finance; CFO since 2010

▪ Degree in business from the Universität Siegen ▪ Previously served as a tax advisor and accountant at KPMG Deutsche-Treuhand- Gesellschaft AG

Marcus Pöllinger

Management Board Member

▪ Joined BayWa in 2008 as CEO assistant; board member since 2018 ▪ Degree in business from the Munich Business School ▪ Previously served as General Representative for Building Materials and Agri Trade & Service at BayWa AG

Matthias Taft

Management Board Member

▪ Joined BayWa in 2015 as a member of the executive board ▪ Degree in Mechanical Engineering from the Technische Universität München ▪ Additionally serves as CEO at BayWa r.e. renewable energy GmbH

Reinhard Wolf

Management Board Member

▪ Joined BayWa in 2013 as a member of the executive board ▪ Degree in agricultural economics from the Universität Wien ▪ Additionally serves as CEO at Raiffeisen Ware Austria AG and board member at Raiffeisen-Holding NÖ-Wien

The BayWa Group Management Board

Page 5 BayWa Agri Supply & Trade

Corporate value creation:

Maintain a visionary group portfolio management

Organisational excellence:

Foster performance through team and collaboration

5

Operations and brand excellence:

Excel at all customer touchpoints beyond sales

4

Digital transformation:

Increase digitization in business models and organisation

Our Direction

Corporate Strategy Business continuity:

Improve competitiveness and protect leadership in core business

New business growth:

Drive customer centric and innovative business models

3 2 1 6

Customers

▪ Farmers ▪ End customers ▪ Industry ▪ Commerce ▪ Trade ▪ Financial investors

Business Model Markets

▪ Agriculture ▪ Energy/ renewable energies ▪ Building Materials

Operating activities

▪ Trade ▪ Logistics ▪ Services ▪ Finance ▪ Project development

Unique selling proposition

▪ Customer proximity through full- coverage network for sales and logistics

The BayWa Group Business Model and Corporate Strategy

Page 6 BayWa Agri Supply & Trade

Our Values

Solidity:

the firm foundation for sustainable growth

Trust:

the basis for a strong partnership

Innovation: the development of

new products and solutions for a partnership that is fit for the future

The BayWa Group Brand Values

Page 7 BayWa Agri Supply & Trade

BayWa Group Vision & Mission

We serve basic human needs, providing leading solutions for food, energy and buildings.

BayWa Vision

For our customers, we are the trusted partner. We connect products, advice and services, enabling our customers to achieve their best.

BayWa Mission

Page 8 BayWa Agri Supply & Trade

Energy Agriculture Revenues 2018: 11,016 EUR m 3,968 EUR m 1,617 EUR m Revenues 2018: 16,625 EUR m 10.7 EUR m Global Produce

BayWa Group

Agriculture Equipment Agri Trade & Services BAST

(BayWa Agri Supply & Trade)

66% Renewable Energies Conventional Energy 24% Building Materials Building Materials 10% Innovation & Digitalisation Digital Farming & E-Business

The BayWa Group Segment Breakdown

Page 9 BayWa Agri Supply & Trade

BayWa Agri Supply & Trade

Business unit profile

What – our offer:

Facilitating agricultural supply

BayWa Agri Supply & Trade Our Purpose, Offer and Approach

BayWa Agri Supply & Trade

How – our approach:

Supportive by nature

Why – our purpose:

The European Agri-Service, Supply and Trade Company, with a global reach

Page 11

What – our offer:

Facilitating agricultural supply

BayWa Agri Supply & Trade Our Purpose, Offer and Approach

How – our approach:

Supportive by nature

Why – our purpose:

The European Agri-Service, Supply and Trade Company, with a global reach

Page 12 BayWa Agri Supply & Trade

BayWa Agri Supply & Trade Our Vision & Mission

Active in agriculture businesses, operating internationally, with a long term focus, fostering excellent relationships with its partners Mission BAST

The European Agri-Service, Supply and Trade Company, with a global reach1)

Vision BAST

1) NOT a global commodity trading company with the scope of ABCDs Page 13 BayWa Agri Supply & Trade

BayWa Agri Supply & Trade Our Strategy

Active in agriculture businesses, operating internationally, with a long term focus, fostering excellent relationships with its partners Strategic Impacts 2020

Define structure, roles & responsibilities that ensures strategy execution, efficiency 4 Augment portfolio with global reach In key Sourcing and destination markets 3 Diversify product portfolio with specialties and services 2 Extend customer supply in Southern Europe and agri-services in existing and CEE markets 1

Page 14 BayWa Agri Supply & Trade

Mission for BAST

What – our offer:

Facilitating agricultural supply

BayWa Agri Supply & Trade Our Purpose, Offer and Approach

Why – our purpose: How – our approach:

Supportive by nature The European Agri-Service, Supply and Trade Company, with a global reach

Page 15 BayWa Agri Supply & Trade

BayWa Agri Supply & Trade About us

− providing efficient marketing of agricultural products allowing customers to profit from diverse market access points − presence in the most important market and stock exchanges − long-term customer relationships − access to reloading points and a well-established supply chain

The core business

National and international sale of agricultural commodities from the purchase of raw materials to the punctual delivery of the right quality to our trade partners and processors, including the animal feed and mill industries.

Page 16 BayWa Agri Supply & Trade

Our role in the agri-products market Short description Company history BayWa AG acquisitions Footprint

Stock listed in Germany as ‘Prime Standard’

Production Processing Trading Origination

Sourcing, trading, supplying of various agricultural goods to the feed, food & Fuel markets in Europe and worldwide United Kingdom/ Ireland BeNeLux Germany/ Austria/ Switzerland Russia/ Ukraine Poland Hungary Italy Spain / Portugal With a trade volume of 25 mil tons … … and more than 500 employees … … in more than 29 offices in 19 countries …

… BAST group is Europe’s trader No.1

Origination of various agri-produce mainly in Southern Germany directly from the farmer

NUMBER

Distribution

2012 2015/2016 2016 2017 2018 2019

BayWa Agri Supply & Trade At a glance

Page 17 BayWa Agri Supply & Trade

BayWa Agri Supply & Trade Entity & Volumes

We expect to trade over 25.0 million tonnes in 2019

This graph includes ca. 3.1m mt of intra-company sales

Page 18 BayWa Agri Supply & Trade

The core services

BayWa Agri Supply & Trade About portfolio

− Procurement and sale of agricultural products worldwide − Product portfolio comprises grain, oilseed and supplementary products − Expansion of specialties trading: malting barley, hops, beans, organic grain… − Trading of approximately 26 million tons of grain and oilseed per year − Global supply chain management and logistics services − Import and export of agricultural products through

• wn domestic and deep-water ports

− Largest soy importer for the European feedstuff industry

Page 19 BayWa Agri Supply & Trade

BayWa Agri Supply & Trade Product Portfolio Overview

Overview of product portfolio of BAST trading activities

GRAINS

Milling Grains Feed Grains Malting Grains

SOYA

Soybeans Soybean Meal Soybean Hulls

CO-PRODUCTS

Oilseeds Oilseed Meal Co-Products

In total the BAST Group trades over 25 million tonnes of Grains & Oilseeds

SPECIALTIES

Minerals Derivatives Other Specialties

Volume

Page 20 BayWa Agri Supply & Trade

BayWa Agri Supply & Trade Timeline – BayWa, Cefetra & BAST affiliates

Foundation of Cebeco Handelsraad Cebeco Feed Trading (Cefetra) was founded as a spin off Foundation of Cefetra Hungary Foundation of Cefetra Polska Sp z o.o Joint venture of Baltic Grain Terminal Cefetra setup Canadian branch Acquisition of Cefetra Group by BayWa

1899 1988

Acquisition of McCorkell Glasgow

1999 2002 2004 2005 2010 2012

Foundation of BayWa in Munich Acquisition of 2 inland silos in Poland

2009 1923

Implementation of “Strategy 2020” and BayWa Agrar International

2014

Foundation of Cefetra SpA in Rome, Italy

2014

Foundation of Cefetra Iberica in Madrid, Spain

2014

Foundation of BMTI

2015

Acquisition of Evergrain, Germany

2016

Acquisition of Wessex Grains by Cefetra Ltd

2015

Acquisition of Thegra Tracomex, The Netherlands

2017

Foundation of BayWa Agri Supply & Trade

2015

Purchase of inland silo in Poland

2011

Acquisition of Premium Crops, United Kingdom

2018

Acquisition of Royal Ingredients Group, The Netherlands

2019

Supply & distribution agreement with Sirius Minerals, UK

2019

Implementation of “Strategy 2024”

2020

Page 21 BayWa Agri Supply & Trade

BayWa Agri Supply & Trade Structure of business unit

Management Board BayWa Agri Supply & Trade

• R. van Gelderen (CFO)
• D. Vriens (CEO)
• R. van der Zee (CCO)

Cefetra BNL Cefetra UK* Cefetra PL Cefetra HU Cefetra FS Cefetra Italy Cefetra Iberica BMTI Evergrain Traco- mex** Soya Milling Grains Feed Grains Co-Products Soft Seeds Malting Grains Risk Finance HR Specialties IT Market Intelligence Legal […] Global Books Functions Entities

BayWa AG K.J. Lutz (CEO)

• A. Helber (CFO)
• M. Pöllinger
• M. Taft
• R. Wolf

* Including Premium Crops ** Tracomex Group including Biocore etc.

RIG

Page 22 BayWa Agri Supply & Trade

Daan Vriens CEO Remco van Gelderen CFO Robert van der Zee CCO

BayWa Agri Supply & Trade Management Board

Page 23 BayWa Agri Supply & Trade

What – our offer:

Facilitating agricultural supply

BayWa Agri Supply & Trade Our Purpose, Offer and Approach

Why – our purpose: How – our approach:

Supportive by nature The European Agri-Service, Supply and Trade Company, with a global reach

Page 24 BayWa Agri Supply & Trade

Company values Brand values

BayWa Agri Supply & Trade Company values relevant for our future

Brand Values Company Values

innovation solidity trust

BayWa Brand Values:

united for success

BayWa Agri Supply & Trade

BayWa Agri Supply & Trade Our Brands

Page 26 BayWa Agri Supply & Trade

− Independent − Efficient − Competent − Responsible

BAST Brand Values:

− Committed − Entrepreneurial

Our unique selling points..

Efficient Customer centric Independent

.. leading to the ability to win in next 5 years

➢ Business system excellence (cost) ➢ Lean & decisive structure ➢ Economies of scale ➢ Agile ➢ Decentral structure close to the customer ➢ Asset light, reinforcing our agility ➢ Entrepreneurial ➢ Trusted partner ➢ Not competing with

• ur suppliers &

customers

BayWa Agri Supply & Trade Positioning to win

Page 27 BayWa Agri Supply & Trade

Cefetra BV

The Netherlands

Company Profile

Cefetra BV At a glance

The core business of Cefetra:

Cefetra markets the following raw materials: Grain: Wheat, corn, barley, triticale, rye, oats & field peas Proteins: Soybean meal and soybeans Co-products: Sunflower meal, rapemeal, wheatbran, palmkernel expellers, sugarbeet pulp & oilseeds

The Rotterdam-based trading company Cefetra is one of the largest importers of agricultural raw materials in Europe and delivers their product to the animal feed, food and fuel

• industries. The supply of the animal feed industry makes up

approximately 90% of the commercial business. The remainder of the business is supply to the food and fuel industries.

Page 30 BayWa Agri Supply & Trade

Cefetra BV Key facts

With75 FTE‘s in the Rotterdam office ... … we physically move13 mln MT, equalling …

3

product groups:

• Grains
• Soya
• Co-products

… resulting in a total revenue of

€3.0 billion ... 220 panamaxes or450.000 trucks ...

… over

… and50+ products.

Page 31 BayWa Agri Supply & Trade

Cefetra BV Volumes

− Mainly compound feed but also food and fuel − 5 biggest clients only make up for 25% of our volume − “Big or small, we go for them all”

Client base

− We supply over 50 different commodities and ingredients − Focus is on expanding our niche products and truck business. − Continue to enable efficient supply chains in traditional commodities

Diversification and focus

~0.3 mm ~0.1 mm

36% 34% 30%

Volumes by desk

SOYA GRAINS COPR 28% 18% 12% 10% 2% 2% 1% 1% 3% 23%

Volumes by destination

NL DE GB BE FR HU/PL ES CZ/SK

• ther

Page 32 BayWa Agri Supply & Trade

Most supportive customer supply partner for agri products in Europe.

Cefetra BV Brand Profile

Brand Core Values Cefetra Positioning

Flexible Customer Committed Modest Sharing Expertise Caring Reliable Sincere Solution Driven

Supportive

We sincerely believe that supporting our customers will grow (y)our business. Our WHY is wanting to be SUPPORTIVE. The drive of an altruist: To protect and take care!

Page 33 BayWa Agri Supply & Trade

BAST

Cefetra BV Important themes: feed safety, quality, sustainability

Page 34 BayWa Agri Supply & Trade

Cefetra Feed Service

The Netherlands

Company Profile

Cefetra Feed Service At a glance

The core business of Cefetra Feed Service:

Cefetra Feed Service markets the following products: High proteins: Potato protein, corngluten meal, SPC Minerals: Limestone, salt, MCP, sodium bicarbonate Oils & Fats: Soybean oil, palm oil, sun oil, rape oil, linseed oil, PKFAD, lecithin Co-Products: Corn gluten feed, linseed, luzern, molasses

Cefetra Feed Service is a one-stop-shop for the feed industry when it comes to small commodities and specialties. Detailed product knowledge, logistical know-how and focus

• n New Business Development. This enables Cefetra Feed

Service to meet specific customer needs and offer efficient supply chain infrastructure with maximum flexibility at competitive prices.

Page 36 BayWa Agri Supply & Trade

Cefetra Feed Service Key facts

With10 FTE‘s in the Rotterdam office ... … we physically move 625 K MT, equalling …

4

product groups:

• Minerals
• High Proteins
• Oils & Fats
• Co-products

… resulting in a total revenue of

€175 million ... 100 barges / trains and 25.000trucks ...

… over

… and20+ products.

Page 37 BayWa Agri Supply & Trade

Efficient and tailor made logistics Bags, Big bags, Flexi bags and Bulk into Containers, Tanks, Trucks, Trains, Barges and Vessels

Cefetra Feed Service Brand Profile

Brand Core Values Positioning

Flexible Customer Committed Modest Sharing Expertise Caring Reliable Sincere Solution Driven

Supportive

We sincerely believe that supporting our customers will grow (y)our business. Our WHY is wanting to be SUPPORTIVE. The drive of an altruist: To protect and take care!

Page 38 BayWa Agri Supply & Trade

Cefetra Ltd

United Kingdom

Company Profile

Cefetra Ltd At a glance

The core business of Cefetra:

Cefetra markets the following commodities: Grain: Wheat, barley, maize, oats, rye, OSR, peas & beans Co-products: Soyabean meal, DDGS, sunflower meal, rapemeal, wheatfeed, gluten, pk, beetpulp, & soyahulls

Cefetra Ltd is focused on the agricultural markets in the UK and Ireland servicing the feed, food/drink and fuel

• businesses. Cefetra Ltd builds strong sustainable supply

chains in a wide range of agricultural commodities. The business operates an unrivalled logistical network of ports and stores giving full coverage across the whole of Ireland and the UK. Cefetra also has a nationwide grain origination capability.

Page 40 BayWa Agri Supply & Trade

…Over 50 commodities supplied

Cefetra Ltd Key facts

125+ FTE‘s in offices/stores

Glasgow, Newry, Henstridge, York, Stokeferry & Sudbury … we physically move 4.5 mln MT… … resulting in a total revenue of

€1.0 billion ...

…775 + trucks loaded per day… …operating from30 ports and39 storage facilities

Page 41 BayWa Agri Supply & Trade

Rosyth ‘as is’ Belfast store and port Rosyth ‘development’

Cefetra Ltd Ports

Page 42 BayWa Agri Supply & Trade

Premium Crops

division of Cefetra Ltd United Kingdom

Company Profile

Premium Crops At a glance

The core business of Premium Crops:

Premium Crops contracts the following crops: Spring linseed, millet, red wheat, HEAR rapeseed, canary seed, winter linseed, spring naked oats, borage and lupins

Premium Crops has established itself as the leading specialist arable merchant for the UK. Premium Crops have exclusive long-term supply agreements with customers. It fulfils these requirements by contracting the production with farmers, selling them their planting seed requirement, supplying them with the technical know-how to best-grow the crop and then organizing the logistics from farm to end-user. Premium Crops has a full trials and evaluation ability for new varieties and crop opportunities

Page 44 BayWa Agri Supply & Trade

…Over 700

farmer suppliers

Premium Crops Key facts

With15 FTE‘s in the Hampshire office… … 9 speciality crops…

Long-standing exclusive supply agreements…

…national coverage… and strong brand recognition

Page 45 BayWa Agri Supply & Trade

Premium Crops Leaders in premium & specialist crops

Page 46 BayWa Agri Supply & Trade

Cefetra Sp z o.o

Poland

Company Profile

Cefetra Sp z o.o At a glance

Main role in the market:

Cefetra Polska collects from farmers and supplies to consumers the following raw materials: Grain: Milling and feed wheat, corn, barley, triticale, rye, oats Proteins: pulses and imported soybean meal Oilseeds: rapeseed and soya beans

Cefetra Polska is leading supplier of raw materials for feed and milling industries in Poland. Majority of products is sourced locally, through origination network and grain silo owned and rented by the company. Companies from BayWa Group supply Cefetra Polska with SBM and provide outlet for milling wheat export to third countries

Page 48 BayWa Agri Supply & Trade

Cefetra Sp z o.o Key facts

With47FTE‘s in office, and25 FTE‘s in silo… … we originate 250 000 MT…

4

grain silo‘s with total capacity

• f 110 000 MT…

… resulting in a total revenue of

€200 million ...

…a trading volume of1mln MT per year…

… with

... with a dehulling line of 20k capacity per annum in Dobre Miasto silo

Page 49 BayWa Agri Supply & Trade

Cefetra Kft

Hungary

Company Profile

Cefetra Kft At a glance

The core business of Cefetra Kft:

Cefetra Kft markets the following raw materials: Grain: Wheat, corn, barley, triticale, Proteins: Soybean meal, Donau soya Co-products: Sunflower seed, rapeseed

Cefetra Kft is located in Budapest, Hungary. The aim of the Hungarian location is to trade, import and distribute agricultural commodities from the Hungarian market to the EU market and from world market to Hungarian market.

Page 51 BayWa Agri Supply & Trade

Cefetra Kft Key facts

With24 FTE‘s in the Budapest office ... … we physically move1mln MT, equalling …

3

distribution areas

• Domestic 400k
• Regional/EU 550k
• World market 50k

…17 years in business… …450k trucks,300k trains and250k barges…

… with

…farmer connection,

country coverage…

Page 52 BayWa Agri Supply & Trade

Cefetra Ibérica S.L.

Spain/Portugal

Company Profile

Cefetra Ibérica S.L. At a glance

The core business of Cefetra:

Cefetra Ibérica‘s strategic objective is to be Iberia‘s reference player in the supply of agri raw materials. Focus on both origination and distribution, aiming to offer the largest portfolio and to attend our customers with a clear service

• rientation

We are focused in the feed and food industries aiming to have an

• verall presence across the peninsula.

Company started operations in January 2015.

Cefetra markets the following raw materials at the Iberian peninsula: Grain: Wheat, corn, barley, triticale, rye, oats & field peas Proteins: Soybean meal and soybeans Co-products: Sunflower meal, rapemeal, wheatbran, palmkernel expellers, sugarbeet pulp & oilseeds

Page 54 BayWa Agri Supply & Trade

…selling to over350

different clients across all the peninsula

Cefetra Ibérica S.L. Key facts

With21FTE‘s in Madrid office... …we have moved9mln MT… in 4 years

• f operations…

… resulting in a total revenue of

€380 million ...

… 360k trucks, enough to create a queue of consecutive trucks from Madrid to Moscow, Russia… …operating from 15 ports and storage facilities.

Page 55 BayWa Agri Supply & Trade

Cefetra Ibérica S.L. The industry and the market at Iberia

Iberia is a big Grain and Feed raw material consumer

GRAIN AND FEED CONSUMPTION 40 MMT

17/25 MMT

15/23 MMT

Implies a recurrent net grain importer, with an average coverage around 40% of its grain needs with foreign goods. Big volatility of domestic crops, due to droughts and soil characteristics

Big ethanol Producers Meat integrators Free market feed compounder Food products Customers

• Iberia is one of the biggest meat producers

in the EU, with a big and competitive infrastructure around that industry.

• Heat, lack of water and irregular orography

result in a high volatility

• n

grains production and low yields, unable to cover the domestic demand. The remaining consumption has to be covered by imports.

Page 56 BayWa Agri Supply & Trade

Cefetra SpA

Italy

Company Profile

Cefetra SpA At a glance

Main role in the market:

Cefetra SpA trades the following raw materials: Grain: wheat, corn, barley Proteins: soybean meal, sun meals and soya beans Co-products: soya hulls

Our vision is to develop for BayWa a Mediterranean trading company dedicated to supply and to service, on a tailor- made basis, a number of Italian consumers and Mediterranean basin importers particularly well positioned in specific “niche” markets.

Page 58 BayWa Agri Supply & Trade

Cefetra SpA Key facts

With16 FTE‘s in the Rome and Ravenna office ... … we physically move1.6 mln MT…

2

distribution areas

• Domestic
• Mediterrranean

…4 years in business… …operating in 10 Mediterranean destinations…

… with

…final user direct access.

Page 59 BayWa Agri Supply & Trade

Cefetra SpA Qualities

Qualities

>30 years of experience in

• ilseeds

Competitive & strategic company Management talent Experience freight & logistics

Page 60 BayWa Agri Supply & Trade

Cefetra SpA Commodity breakdown

15% 50% 8% 27%

Commodities

Beans Meal Co-products Grains

Page 61 BayWa Agri Supply & Trade

Cefetra SpA Logistics

Page 62 BayWa Agri Supply & Trade

BayWa Marketing & Trading International BV

The Netherlands

Company Profile

The core business of BMTI:

BMTI adds global reach to the core commodities in grains and oilseeds. The company trades outside the group’s traditional markets with a focus on functional flows.

The company is headquartered in Rotterdam and has offices in Kiev and Moscow. Our function derives from expertise in:

• structured trade finance
• logistics
• pricing solutions

Operative in markets where group companies are not present. e.g. Black Sea, MENA consumer markets. Creating and exploiting global arbitrage opportunities with in house

• rigination at their core.

BayWa Marketing & Trading International (BMTI) At a glance

Page 64 BayWa Agri Supply & Trade

BayWa Marketing & Trading International Key facts

With25 FTE‘s... … we physically move3 mln MT, equalling … … resulting in a total revenue of

€450 milion ...

... with11different nationalities in 3 offices ... …started October2014

4

product groups:

• Milling Grains
• Feed Grains
• Oilseeds
• Pulses

… over

Page 65 BayWa Agri Supply & Trade

Evergrain GmbH

Germany

Company Profile

Evergrain Germany GmbH & Co. KG At a glance

The core business of Evergrain:

Evergrain is a dynamically growing trading company headquartered in Hamburg which specializes in the procurement and marketing of brewing grains.

• procurement of high-quality brewing grains in most major export

markets worldwide and in direct cooperation with local originators and logistic partners

• marketing of high-quality brewing grains to regional and

international customers of the malting brewing industries

• price and time optimization of commodity flows and innovative and

sustainable pricing mechanisms serving customer interests

Page 68 BayWa Agri Supply & Trade

Evergrain Germany GmbH & Co. KG Key facts

With14 FTE‘s in the Hamburg office ... …we collect270 000 MT…

35

…resulting in a total revenue of

€150 million ...

…in over

…consolidated since January2016 countries worldwide… …and we trade900 000 MT…

Page 69 BayWa Agri Supply & Trade

Evergrain Germany GmbH & Co. KG Trading

Malting barley trading Evergrain Page 70 BayWa Agri Supply & Trade

Company Profile

Tracomex BV

The Netherlands

Tracomex Group At a glance

The core business of Tracomex:

Tracomex is an international trading company with more than 100 years of experience in the trade of agricultural raw materials destined for human consumption, the feed and petfood industry

Tracomex trades the following raw materials: Grain: Barley, corn, oats, millet, rye, sorghum, spelt, triticale, wheat By-products: of barley, cocoa, corn, grass, groundnut, linseed, malt, oat rapeseed, rice, spelt, sunflower, soy, wheat, DDGS Pulses: Horsebeans, lupines, peas Oilseeds: linseed, rapeseed, soy beans, sunflower seed Oils: Linseed oil, soya oil, rape oil Rice: Longgrain rice, broken rice

Page 73 BayWa Agri Supply & Trade

Tracomex Group Key facts

With35 FTE‘s... … we physically move1mln MT, equalling …

4

companies:

• Tracomex
• Thenergy
• Riveka
• BioCore

… resulting in a total revenue of

€250 million ...

... Trading over50 different products…

… in

…consolidated since January2017

Page 74 BayWa Agri Supply & Trade

Tracomex Group Key facts

Company: Tracomex Group Headquarters: Oosterhout, The Netherlands Revenues: ca. EUR 250 m Employees: approx. 40 BayWa stake: 100% Trading volume: approx. 1 million tons per year Countries: BeNeLux Subsidiaries: − Tracomex B.V., Oosterhout, The Netherlands − Thenergy B.V., Oosterhout, The Netherlands − Riveka BVBA, Boom, Belgium − BioCore B.V., Weesp, The Netherlands Consolidated since: January 2017

Tracomex B.V. The Netherlands Thenergy B.V. BioCore B.V. The Netherlands Riveka BVBA Belgium

100%

The Netherlands

BayWa AG BayWa Agri Supply & Trade

Page 75 BayWa Agri Supply & Trade

Thenergy BV

The Netherlands

Company Profile

Thenergy BV At a glance

The core business of Thenergy:

Thenergy is an international trading company aimed at

• ptimizing the value of by-products and ‘non-conforming’

product no longer suitable to be used as an ingredient in food or feed.

Thenergy is active in following industry and markets:

• Supply of goods to bio-energy production (biogas).
• Supply of goods for nutrient recovery though use in fertilizers or

compost.

• Supply of goods for use in renewable chemicals and building materials.

Page 77 BayWa Agri Supply & Trade

Company Profile

Riveka BVBA

Belgium

Riveka BVBA At a glance

The core business of Riveka:

Riveka is a trading company based in Belgium. Its focus lies

• n niche co-products from the milling-, malting-, and rice
• Industry. These products are intented for the compound feed

industry, pet food producers and biogas installations. Active in the Benelux, France, the UK and Germany. Riveka is expanding its activities in synergy with the Tracomex and Cefetra portfolio. Support and service are the key elements in the relationship with its customers.

Riveka trades the following raw materials: Grain: Barley, corn, oats, millet, rye, sorghum, spelt, triticale, wheat By-products: of barley, cocoa, corn, grass, groundnut, linseed, malt, oat rapeseed, rice, spelt, sunflower, soy, wheat, DDGS

Page 79 BayWa Agri Supply & Trade

BioCore BV

The Netherlands

Company Profile

The core business of BioCore:

BioCore is an international trading company with more than 25 years of experience in the trade of organic agricultural raw materials, which are for human consumption and the feed industry.

The nature of the organic trade demands a solid track and trace system. We work in close cooperation with many organic farms and collectors. Through our office in Ukraine we have direct access to the Ukrainian organic market, which is an important source for our raw materials. BioCore sources most of the organic raw materials from: Ukraine, Russia, Rumania, Baltics, Spain and Poland. BioCore trades the following raw materials: Grain: Barley, corn, oats, millet, rye, sorghum, spelt, triticale, wheat By-products: of barley, corn, grass, oat, rapeseed, spelt, sunflower, soy, wheat. Pulses: horse beans, lupines, peas Oilseeds: linseed, rapeseed, soy beans, sunflower seed Oils: Sun oil, soya oil, rape oil

BioCore BV At a glance

Page 81 BayWa Agri Supply & Trade

Royal Ingredients Group At a glance

The core business of Royal Ingredients:

Royal Ingredients markets the following materials: Proteins: Vital wheat gluten, soya concentrate/isolate, potato protein, pea protein, corn gluten, fish meal Starches – Flours: Corn starch, potato starch, wheat starch, pea starch, tapioca starch, cationic starches, potato flakes Sweeteners & Polyols: Glucose, maltose, dextrose, maltodextrine, sorbitol, Specialties: Chia, quinoa, wheat, bakery seeds, calcium propionate, instant yeast etc.

Royal Ingredients Group supplies conventional and organic ingredients for food-, feed-, and industrial applications. Serving more than 500 active customers in over 60 countries

• worldwide. Only active in business-2-business markets

Page 83 BayWa Agri Supply & Trade

Royal Ingredients Group Key facts

BayWa Agri Supply & Trade

With41FTE‘s in 6 offices we physically move120.000 MT…

4

product groups:

• Proteins
• Starches & flours
• Sweeteners & polyols
• Specialties

… resulting in a total revenue of

€115 million ...

serving over500 customers in 60 countries…

… over

… and25+ products.

Page 84

Agrar Germany

Company Profile

Part of business unit „BayWa Agrar“

Agrar Germany At a glance

The core business of Agrar Germany:

Agrar Germany markets the following main raw materials: Feed grains: Barley, corn, feed wheat Milling grains: Wheat, rye, durum, spelt wheat Oilseeds and pulses: Rapeseed, peas Feedstuff: Soyameal, rapemeal, DDGS, sugar byproducts

Agrar Germany sources and trades grains, oilseeds & co- products from farmers (via BAV) and third parties, whilst distributing these raw materials to local industries (e.g. millers and compound feed) or selling FOB to export markets.

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Agrar Germany Key facts

Combining origination at the farmer and wholesales activities… … trading a volume of5 mln MT…

4

product groups portfolio:

• Feed grains
• Milling grains
• Oilseeds & pulses
• Feedstuff

… export through2 ports with access to Baltic Sea… …storage capacity of 1.7 mln MT…

… with

… exporting1.5 mln MT.

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Agrar Germany Key facts

BayWa Agri Supply & Trade

Agrar Germany sources and trades grains,

• ilseeds & co-products from farmers (via BAV) and

third parties, whilst distributing these raw materials to local industries (e.g. millers and compound feed)

• r selling FOB to export markets.

Origination / Sourcing Inland Logistics (Rail/Road/Boat) Distribution

Operations

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Agrar Germany Business Model

BayWa Agri Supply & Trade

Purchase volume ∑5.0 Mio. T

(farmers, cooperatives, traders)

Sales volume ∑5.0 Mio. T

(mills, energy/starch, feed industry, reseller, farmers)

National Input / Collection

National & International Trading

Farming Production Origination & Sourcing (wholesale) Storage / Logistics / Services Trading & Supply

Wheat Milling grain Malting grain Feed grain Corn Oilseed Oilseed meal Co-Products Pulses Raw materials Ex harvest / Post collection

• f grain & oilseed

Processing Drying Storage Transportation Trading strategies Position steering Risk management Grain mills Oil mills Energy / starch Feed industry Resellers / farmer / others

Processing Resellers / Traders

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Agrar Germany Function

BayWa Agri Supply & Trade

Purchase

− Information supply for (ex-harvest, post- harvest) origination − purchase calculation towards farmers by daily price quotations for all commodities − Position steering and management of stocks − Additional Sourcing by third party originators − Supply of feed stuff via purchase of industry & wholesale − Building a physical flow to provide a all year long liquidity for important products − Business with industry, wholesale and distributors within EU (from a single flat price contract to strategic partnerships) − Hedging at future markets and hedging via physical liquidity − Logistics / supply-chain contracts (shipping, train, truck)

Sale

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Agrar Germany Ports

BayWa Agri Supply & Trade

Mukran (Rügen) Vierow

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XXXXX Partner/Customer

We and you.

Company name We and you

BayWa Agri Supply & Trade Page 93

Toolbox: Icons

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More BayWa Icons to be found: Via BayWa brand portal

Click „Ein-Klick Login“ (for BayWa AG), use smart access „Medienpool“, click „Piktogramme“. Our icons are continously developed.

BayWa brand portal (Link)

BayWa Agri Supply & Trade Page 96

Name Green Grey White

Milling industry Algorithm trading Specialties Commodities Non-GMO Data management Data protection Data security Blockchain

Name Green Grey White

Drones Artificial intelligence Online platform People network Data connectivity Satellite geodata

Organic Regional local

Selection of BAST icons Available and clickable

Name Green Grey White

Worldmap Companies Building Factory Market price Calendar Computer Smartphone Data

Name Green Grey White

Ship Port Airplane Logistics Silo Wind power

Digital farming

BayWa Agri Supply & Trade Page 97

BayWa Agri Supply & Trade

Name Green Grey White

Wifi Confirmation Update Search Monitoring Position Localisation Ideas Waste bin

Selection of BayWa icons Available and clickable

Name Green Grey White

Bio electricity Bio mass

Bio gas Water Soy Coproducts Hop Grain Apple

Name Green Grey White

Pig Chicken Sheep Cow Horse Cutlery Page 98

Toolbox: competences and examples

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Purpose

Leading European solution provider of agricultural ingredients

Offer Facilitating agricultural supply Approach Supportive by nature Independent

Operating independently from specific regions, growing and processing makes us focusing on our customer (consumer and supplier) needs

Committed

We take responsibility and act result-

• riented, customers are our partners

who we are providing expertise, network, solid & tailor-made solutions

Competent

Market insights, deep understanding of industry needs as well as of price- building and supply options enable us to outperform for our customers

Efficient

Our pragmatic and well structured processes are base for a lean and performing organization and make us cost leader in our business environment

Entrepreneurial

We are self-driven and continuously work to enhance or set of capability and solutions for our customers, embracing and driving innovation

Responsible

We act responsible, people, environ- ment, resources and quality are vital part of our business drive our leading solutions for sustainable value chains

Business unit development Our Value: One Team – One Culture

BayWa Agri Supply & Trade Page 100

BayWa Agri Supply & Trade Our Independency

BayWa Agri Supply & Trade

➔ ➔

BAST

Buying – Shipping – Supplying

Operating independently from specific regions, growing and processing makes us focusing on our customer (consumer and supplier) needs

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BayWa Agri Supply & Trade Our Efficiency

BayWa Agri Supply & Trade

Target and measure cost efficiency

One of our KPIs: Overhead per ton

Decentralized structures

In Europe: Small business teams with own P&L

Leverage and scale of competences for group benefit

for instance: Global Books, Market Intelligence

Our pragmatic and well structured processes are base for a lean and performing

• rganization and

make us cost leader in our business environment

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BayWa Agri Supply & Trade Our Commitment

BayWa Agri Supply & Trade

➔ ➔

BAST

Buying – Shipping – Supplying

We take responsibility and act result-oriented, customers are our partners who we are providing expertise, network, solid & tailor-made solutions

right time right quality right quantity

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BayWa Agri Supply & Trade

Demand

Specific customer demand

• Non-commodity crops
• Crops normally not grown but for

specific customer need e.g. HEAR

• Specific varieties with particular

traits for customer benefit, but not widely grown e.g. NuLin linseed

• Customers requiring strategic

production e.g. geographical crop risk or visibility to a competitor

• Geographical location imparts

particular quality benefits e.g. GLA

content in Borage

• Full traceability from seed

supplied to the farmer to crop delivery Acquisition Premium Crops in 2018

Solution

Value offer ➢ Premium Crops contracts farmers to grow specific crops for their customers. ➢ Premium Crops selects the best genetics to satisfy the requirements of customers and farmers. ➢ Premium Crops contracts specific varieties with a fully traceable system ➢ Long terms agreements – up to 3 years ➢ Deep relationships; customers are reliant

• n Premium Crops for certain raw

materials

BayWa Agri Supply & Trade Our Commitment – Example: Premium Crops

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BayWa Agri Supply & Trade Our Competence

BayWa Agri Supply & Trade

➔ ➔

BAST

Buying – Shipping – Supplying

Market Research & Intelligence (like S&Ds, funds, harvest prediction) Trade Finance, Forex & Document management Fundamental Market insights & Quantitative intelligence Global Partner Network Nutrition, ingredients and industry knowledge (and ‘how to supply’)

Market insights, deep understanding of industry needs as well as of price- building and supply options enable us to outperform for our customers

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BayWa Agri Supply & Trade

BAST commitment

Market research desk Demand

supply chain manager

position needed

• pinion on the market

need for market information

market research

used as marketing tool!

Solution

Support trade by making trade decisions ✓ Collecting data worldwide

S&D’s of 23 commodities (grains, oilseeds complex, co-products) Follow related markets such as biofuels, sugar, cotton, livestock Macro economic analysis & outside markets Technical analysis

✓ Maintain an information network (speculative funds, policy..) ✓ Interpret the collected information ✓ Translate the information into signals  Challenge the trade on their positions Customers benefit from the independent and transparent market information provided  Better procurement decisions

BayWa Agri Supply & Trade Our Competence – Example: Market Research

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BayWa Agri Supply & Trade

Creating specific flows of ingredients ➢ Organizing flows of similar composition to minimize variability

Demand

The level of nutritional knowledge in the feed sector is very high and still increasing  precision nutrition of livestock animals enables an cost-efficient and sustainable animal protein production Naturally occurring variability in the feed stuffs can be limiting factor to accurate feed formulation . Sources of variation in feed ingredients composition ➢ Country/region of origin ➢ Seasonal variability ➢ Processing (co-products) . Nutrient variability in raw materials can lead to:

• Overestimating the nutrient profile → not providing

the animal with the nutrients as calculated

• Underestimating the nutrient profile → not using the

maximum potential nutritive value .

Using an average value is not sufficient anymore!

.

Solution

Cefetra has developed a program for the problems of nutrient variability in raw materials

Having more knowledge about the general variability ➢ Database of Cefetra feed material flows ➢ Understanding variation causes ➢ Understanding variability impact per ingredient and animal feed Monitoring/predicting current variability ➢ Continuous sampling and analyzing ingredients ➢ Providing customers with data

BayWa Agri Supply & Trade Our Competence – Example: Product knowledge

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BayWa Agri Supply & Trade

Demand Solution

Over the last twenty years our markets witnessed a huge inflow of speculative money. To have a better understanding what speculative money is doing, BAST started two projects:

Quant desk

➢ Hedge funds using algorithmic trading strategies ➢ More speculative money and algorithmic trading  the way markets behave has changed.

Blink

• Trend Following -

➢ On a daily basis we obtain trading signals from an experienced hedge fund, which gives us insights into trend following trading strategies

Blitz

• Short Term Strategies -

➢ Joint effort with another hedge fund. ➢ We gained better understanding what short term (intraday – couple of days) quantitative hedge funds are doing. E.g. USDA WASDE report, where algorithms are trading within the first second of the report Via exclusive partnerships with two hedge funds BAST can give customers an unique insight into what algorithms are doing

BayWa Agri Supply & Trade Our Competence – Example: Quantitative projects

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Digital Initiatives

Self- Billing Vista Geo Power BI Spain Inputs AI QuantumRock

BayWa Agri Supply & Trade Our Competence – Example: Digital initiatives

BayWa Agri Supply & Trade Page 109

Continuous NBD program in product & supply skills

for instance: Faba Beans dehulling, Pulses for starch industry

BayWa Agri Supply & Trade Our Entrepreneurial Spirit

BayWa Agri Supply & Trade

Market insights, deep understanding

• f industry needs as

well as of price- building and supply

• ptions enable us to
• utperform for our

customers

Portfolio enlargement by specialty products & supply chains

for instance: Tracomex group, Premium Crops Limited

Enforcing innovation processes

for instance: BayWa Digital Farming, Agrar Accelerator

New skills development in trading

for instance: Geo Data analytics, Algorithm trading

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BayWa Agri Supply & Trade

Consumer trends often lead to the introduction

• f many new market concepts. These market

concepts require changes from the farmer and the feed compounder how to feed livestock animals

Example: a more local feed

➢ Need for more European, high quality protein is increasing ➢ Transparent, sustainable supply chains are becoming more important in food production ➢ Faba beans are a valuable protein source in animal feed/aquafeed, especially when the beans are dehulled ➢ Dehulling increases the feeding value of the beans, but the cost of dehulling low make the additional processing economically viable. Cefetra has the backward integration and capabilities to respond to these new market

• developments. As a result, Cefetra was able to offer

its customers the best possible solution. ➢ Further developing Cefetra’s own origination of faba beans: ✓ Secure/increase supply of faba beans ✓ Originate beans with high protein content (Poland, Lithuania) ✓ Offering a transparent supply chain ✓ Possibility for organic, other products dehulling, further processing concentrate ➢ Building a processing line at a storage location for dehulling: ✓ Creating maximum logistical efficiency with dehulling integrated at the site. ✓ Use the network to find local outlet of side stream i.e. hulls.

Demand Solution

BayWa Agri Supply & Trade Our Entrepreneurial Spirit – Example: Faba Beans

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BayWa Agri Supply & Trade

Acquisition Tracomex group in 2017

Demand Solution

Value offer

➢ Entrepreneurial approach towards new products ➢ Speedy implementation and testing at own risk in the benefit of the customer ➢ Fair and transparent price conditions for customers and Tracomex enhances long partnerships ➢ No mistakes in the execution as a basis for customer success

• Non commodity waste products

and specialty crops

• High nutrient levels with

competitive pricing

• Excellent logistics, especially for

food producers, with a no error mentality

• Strong customer partnership with

fair conditions

• Reliability on product safety and

classification

Specific customer demand

BayWa Agri Supply & Trade Our Entrepreneurial Spirit – Example: Tracomex

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BayWa Agri Supply & Trade

Innovation is not only developed inside the company – new trends and ideas are picked up by young companies, working on new products, services and even disruptive business models The Agro Innovation Lab was founded in 2016 as a joint innovation platform of BayWa & RWA: A trend scout, accelerator, networker, mentor, … – unified in our goal to play an active part in shaping the future of agriculture through innovation.

Demand Solution

BayWa’s approach

▪ Embrace innovation – also disruptive ones – to ensure we can incorporate value adding ideas also to be accessible for for customers ▪ Support innovation, also in early stages when business models are still under development. The benefit of an idea can also be, just to create another one. ▪ Grow innovation – by keeping it focused, providing the right development framework and ensure vice-versa benefit from experience.

• The first European Corporate AgTech Accelerator!

with each StartUp participating in the program, we design a joint innovation project over the course of five months, including a monthly intensive Acceleration Week.

• Our manifold activities conjoin AgTech with

conventional agricultural technology, merging the expertise of traditional agriculture with the possibilities of digitization, thus building a network

• f research, development and entrepreneurship.

BayWa Agri Supply & Trade Our Entrepreneurial Spirit – Example: Innovation

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BayWa Agri Supply & Trade

New technology but also new requirements make more intense farm management possible and necessary. Enabling farmers to do so is not

• nly developing agricultural advisory to the next

level – it also supports efficient production. Development of a digital farm management services – based on the acquisition of existing expertise:

Demand Solution

BayWa’s approach

Smart Farming Enabler for farmers – for solutions within the full farming value chain, e.g. precise fertilization, seeding and water management ▪ Farm-Management–Information Systems und Digital Advisory Services ▪ Technological Enabler by offering Sensor technology, drones and smart farming advisory ▪ Expansion of knowledge base by data access, understanding and modeling ▪ Analog Services (e.g. soil analysis) Next Farming products:

Enabling smart farming for every size of farms and creating value for every farmer through digitalization of production processes.

BayWa Agri Supply & Trade Our Entrepreneurial Spirit – Example: Digital Farming

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BayWa Agri Supply & Trade Our Responsibility

BayWa Agri Supply & Trade

BayWa Stiftung African farm support Fair Trade

Social responsibility

Sustainability Health

Nutritional quality Leading in non-GMO Quality management Certified responsible soy Innovation feed & food safety Sustainability reporting Leading supplier sustainable feed ingredients CO2-reduction & Carbon footprint Leading in Organic feed industry supply Employee development Integrity Diversity & inclusion

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