BayWa AG Annual Report 2011

4 • Consolidated Financial Statements • Notes to the Consolidated Financial Statements
(A.) Background to the BayWa Consolidated Financial Statements
(A.1.) General information, accounting and valuation methods
BayWa AG has its principal place of business in 81925 Munich, Arabellastraße 4, Germany. The BayWa Group is a group of trading and services
companies with core activities in the following lines of business: Agricultural Trade, Fruit, Agricultural Equipment, Energy, Renewable Energies,
Building Materials and DIY & Garden Centres. The Agricultural Trade Business Unit comprises trading in agricultural produce and operating resources.
The Fruit Business Unit combines all activities of the Group in the business of fruit trading. The Agricultural Equipment Business Unit offers a fullline
range of agricultural equipment and services. The Energy Business Unit has an extensive network which ensures the supply of heating oil, fuels,
lubricants and wood pellets to commercial and private customers. In the Renewable Energies business line, the Group offers customers services
geared to project management for wind power, biogas facilities and solar power plants, on the one hand, and operates its own wind and biogas
plants to produce electricity, on the other. The range of products and services under Renewable Energies is rounded off by the sale of solar panels.
The Building Materials Business Unit comprises activities involved in selling building materials. The DIY & Garden Centres Business Unit serve the
customer in the “Do-It-Yourself” market.
In the financial year 2011, BayWa AG’s Board of Management made the decision, with the approval of the Supervisory Board, to incorporate part of
the DIY and garden centres of BayWa AG into a joint venture with Semer Beteiligungsgesellschaft GmbH, Salzburg, Austria, with effect from 1 January
2012. Semer Beteiligungsgesellschaft mbH operates DIY and garden centres in Germany and Austria through Hellweg Die Profi Baumärkte GmbH &
Co. KG, Dortmund. As contractually agreed, the inventories and selected property, plant and equipment and directly allocable liabilities of 56 DIY and
garden centres belonging to BayWa AG will be transferred to Munich-based BayWa Bau- & Gartenmärkte GmbH & Co. KG, a company established
for this purpose, with effect from 1 January 2012. Following the transfer, Semer Beteiligungsgesellschaft mbH will acquire 50% of the limited partner
interest in BayWa Bau- & Gartenmärkte GmbH & Co. KG in the first stage of the transaction. BayWa AG will initially retain the remaining 50% which
will be sold in stages to Semer Beteiligungsgesellschaft mbH over a period up until 31 December 2021. All the real estate assets of the DIY and
garden centres being transferred will not be assigned to the new company as part of the transaction. They will remain in the ownership of BayWa AG
and let in future to BayWa Bau- & Gartenmärkte GmbH & Co. KG. Moreover, the DIY and garden centres which are closely interlinked with locations
of other business units will remain the property of BayWa AG. Similarly, the BayWa Group’s Austrian DIY and garden centres are also not part of
the transaction. BayWa Bau- & Gartenmärkte GmbH & Co. KG will be included in the BayWa Group under the equity method. Owing to the spin-off
decision effective 1 January 2012, the assets and liabilities of the 56 DIY and garden centres being transferred will be reported in the consolidated
financial statements as at 31 December 2011 as a disposal group within the meaning of IFRS 5.
The Consolidated Financial Statements as at 31 December 2011 were drawn up in compliance with the International Financial Reporting
Standards (IFRS) as applicable within the European Union. The standards of the International Accounting Standards Board (IASB), London, and the
interpretations of the International Financial Reporting Interpretations Committee (IFRIC) valid on the reporting date were fully taken account of. The
consolidated financial statements therefore give a true and fair view of the assets, financial position and result of operations of the BayWa Group.
Moreover, the consolidated financial statements accord with the supplementary provision set out under Section 315a para. 1 of the German
Commercial Code (HGB).
The financial year of the BayWa Group covers the period from 1 January to 31 December. The financial statements of BayWa AG and its subsidiaries
are prepared in accordance with the balance sheet date of the consolidated financial statements. The financial statements of Deutsche Raiffeisen-
Warenzentrale GmbH and Raiffeisen Beteiligungs GmbH constitute an exception as these companies are accounted for using the equity method. Both
companies have a different reporting date, which is 30 June. The interim financial statements of both companies as at 31 December 2011 form the
basis for consolidation.
The accounting implemented within the group of BayWa AG is carried out in accordance with the accounting and valuation principles uniformly
applied by the whole Group; they are described under Notes C. and D. in the explanations on the balance sheet and the income statement.
Individual items have been disclosed separately in the balance sheet and in the income statement to enhance transparency. They are broken down
and explained in the Notes to the Consolidated Financial Statements. The consolidated financial statements have been prepared in euros. Unless
otherwise indicated, amounts are shown in millions of euros (€ million; rounded up to 3 decimal points).
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