Presentation english - BayWa

From European to international 

agricultural trader – acquisition of 

Cefetra B.V. and Bohnhorst 

Agrarhandel GmbH 

Press conference, September 28, 2012 

Klaus Josef Lutz, CEO 

Andreas Helber, CFO

Agenda 

BayWa AG, Corporate Finance 

1 

2 

3 

4 

Starting point 

Cefetra B.V. 

Bohnhorst Agrarhandel GmbH 

BayWa AG – a global agricultural trader 

1

Agenda 


1 

2 

3 

4 


Cefetra B.V. 



2

BayWa Agriculture – overview of business model 

Business model: BayWa Agriculture produce* 


NATIONAL COLLECTION NATIONAL & INTERNATIONAL TRADE 

Plant-producing 

farming activities 

Wheat 

Grain for brewing 

Grain as feedstuff 

Maize 

Oilseed 

Oilcake 

Raw materials 

Collection activities 

After-harvest/later 

collection 

Grain & m(2.4 million 

t) 

Purchase volume ∑5.6 million t 

(Farming, cooperatives, rural trade, intern. businesses) 

Warehousing/ 

logistics/services 

First processing step 

Drying 

Storage 

Transport 

Price hedging 

International grain 

trade 

Wholesale purchasing 

grain & oilseed (3.2 

million t) 

BAYWA’s expertise 

Full-range agricultural products supplier focusing on 

central Europe 

Strong sales and logistics network 

Excellent collection structure 

1.8 million tons in warehousing capacity 

First processing 

step 

Resellers 

Grain mills (1.5 million t) 

Oil presses (0.7 million t) 

Malting facilities (0.2 million t) 

Energy/starch (0.5 million t) 

Feedstuff industry (1.1 million t)** 

Resellers/farmers/other (1.6 million t)*** 

Sales volume ∑5.6 million t 

(Mills, malting facilities, energy/starch, feedstuff industry, 

resellers, farmers) 

Core business 

Value chain steps up-/downstream of 

business model 

*Purchase volume refers to 2011, sales volume includes warehousing stocks 

**Includes in-group deliveries and extending RWA AG’s warehouse activities 

***BayWa AG’s oilseed sales includes following customer groups: grain industry and industry/retail/other companies 

3

BayWa Agriculture – central role in group’s business 

Market position of BayWa in grain trading 

• BayWa operates 300 locations in Germany, 600 in Austria via 

warehouse organization/RWA and 16 in the Czech Republic 

• Overall trade volumes in grain business amounts to approx. 

5.6 million t / BayWa Group’s warehousing capacity amounts 

to almost 1.8 million t in the region where the company 

operates 

• Grain purchased largely from farmers and cooperatives in the 

region where the company operates / close ties with 

customers thanks to grain and operating resources business 

• Sales largely go to mills, wholesalers and feedstuff industry 

within national markets / little direct access to customer 

groups in other European markets 

Regional market trends Revenue & EBIT: changes at BayWa Agriculture 

• Establishing company’s position directly with farmers is 

becoming increasingly important in agricultural trading – 

extensive locations network and operating resources 

business gives BayWa excellent position 

• Market growth – esp. harvest quantities in region of BayWa’s 

operations – is stagnating due to increased competition from 

energy crops and decline in area of land under tillage 

• Consolidation of competition for collection and agricultural 

trading 

• Competition is increasing due to liberalization of agricultural 

market and elimination of trade barriers 


Region of BayWa’s operations 

Sales growth of 28% in 2007-2011/ 

fluctuations due to price changes 

4.049 

4.259 

3.330 113 3.270 

3.505 

Agricultural unit is core division and success story at BayWa – 

strong ties to farmers and infrastructure give BayWa Group its dominant market position 

€ mill. 

5.000 

4.000 

3.000 

2.000 

1.000 

0 

75 

51 

64 

78 

2007 2008 2009 2010 2011 

Revenue EBIT 

Sales Locations: Germany 

Sales Locations: Austria 

Subsidiaries 

120 

100 

80 

60 

40 

20 

0 

€ mill. 

4

Globalization secures growth for quantities and margins 


Strong international growth in demand for grain 

In thousands of t 

800.000 

700.000 

600.000 

US$107 

Source: OECD-FAO Agricultural Outlook 2012-2021, USDA 

US$349 

FORECAST 

*Weizenkontrakt Nov.12 Euronext Paris 

Sept. 19, 2012 

US$339* 

500.000 

1995 2000 2005 2010 2015 2020 

• International grain output will grow 11.3% by 2021 due to rising global population, rising affluence and demand from 

energy sector 

• For coming 10 years, USDA/OECD/FAO forecast nominal increase of wheat price to approx. US$335 coupled with 

greater price fluctuations due to declining warehouse stocks, unpredictable weather and financial investors 

• Elimination of regulations and market protection will cause international trade to gather steam – trade patterns shift 

in favor of developing countries 

The international grain market is a growing market, but most growth will take place abroad. 

Tougher competition over access to collection structures. 

US$ 

334 

In US$ 

Weizenkonsum Wheat consumption Weizenproduktion Wheat production Weltpreis International [US$] price [US$] 

400 

350 

300 

250 

200 

150 

100 

5

Substantial changes in commodity market’s trade patterns – global 

collection structure secures supplies. 

Overview of international trade patterns for grain and soya in 2010 

International grain production: 1.,61 million t 

Maize: 844 million t 

Wheat: 650 million t 

Barley: 123 million t 

International soya bean production: 265 million t 

International grain trade: 291 million t 

Wheat: 145 million t 

Maize: 108 million t 

Barley: 26 million t 

International soya bean trade: 93 million t 

International Soya bean meal trade 64 million t 


Soya bean meal: 

11.4 million t 

Wheat: 4.0 million t 


Soya: 6.6 million t 

Soya bean meal: 9.6 million t 






Maize: 5.5 million t 




Maize: 25.5 million t 


Soya bean meal: 2.3 

million t 


Source: UNComtrade, FAOstat 

Major market trends 

• Scarcity of agricultural 

commodities due to increase in 

international population and 

affluence. 

• GAP2014 will transform Europe’s 

subsidy policies. 

• Substantial changes in 

commodity market’s trade 

patterns in favor of developing 

countries, above all Asian 

nations. China will increase its 

lead as world’s largest importer of 

oilseed. 

• EU27 will see decline in its share 

of international trade volumes. 

• Land grabs: Asian and Arab 

states above all will buy up 

agricultural land to feed rising 

demand for commodities. 

Trade patterns for grain and oilseed are changing rapidly. Elimination of trade barriers and market liberalization 

will lead to greater globalization and intensification of competition. 

6

Growing scarcity of agricultural commodities forces international 

commodity groups to step up involvement in purchasing structures 

10/10: Gavilon, purchases 

DeBruce Grains for US$600 

million 

3/11: ADM purchases 

crushing facility from Prairie 

Pride 

05/12: Marubeni purchases 

Gavilon for US$5.6 billion 

02/12: Nisshin purchases 

Miller Milling for US$122 

million 

1/12: Gavilon purchases 

AgriService 

01/10: Bunge purchases 5 

sugar plants from Usina 

Moema for US$1.2 billion 

4/11: Bunge sells crushing 

facility to Cereal Docks 


06/12: Olam, forms JV 

with Lansing 

Grain & soya Grain: Germany 

08/11: Cargill purchases 

Provimi for €1.5 billion 

03/12: Glencore 

purchases Viterra 

(together with Agrium 

and Richardson) 

05/11: ADM purchases grain 

silo (40 thousand t) at 

Muskator in Riesa 

6/11: Louis Dreyfus 

purchases Macrofertil for 

€16 million 

3/11: Kernel 

purchases 71% stake in 

Sakharnyi Soyuz for 

€100 million 

01/11: Mitsui 

purchases 44% stake 

in Multigrain 


AWB’s grain business unit 

from Agrium for US$860 

million 

• 12/08: HAGE Kiel ends membership of 

Deutschen Raiffeisen Verband and GVN 

• 03/09: HAGE Kiel purchases Biesterfeld 

Scheibler Linssen 

• 06/10: HAGE Kiel purchases 60% stake in 

Roth Agrarhandel 

• 05/12: HAGE Kiel purchases Muskator 

feedstuff facilities in Riesa, Bamberg and 

Deggendorf 

• 11/10: Agravis AG expands activities in 

feedstuff market and purchases HL group 

• 09/12: Agravis establishes eastern 

Europe JV with DLA 

08/07: DLG Group becomes majority 

shareholder in HAGE Kiel upon 

purchasing 56% of shares 


85% stake in PT Sorini Agro 

for €395 million 

08/10: Agrium 

purchases AWB for 

US$1.8 billion 

7

Agenda 


1 

2 

3 

4 


Cefetra B.V. 



8

Cefetra: acquisition of an international grain company and milestone 

transaction in cooperative sector 

In brief 

• Company: Cefetra B.V. 

• HQ: Rotterdam, Netherlands 

• Sales: approx. 20 million t of agricultural commodities in 2011 

• International trade in agricultural commodities with feedstuff, 

food and energy industries 

• Employees: 210 (in 2011) 

• Shareholders: ForFarmers Group B.V. (57.7%) 

Strategic justification 


Agrifirm Group B.V. (32.3%) 

AgruniekRijnvallei Holding B.V. (10%) 

• Main buyer: feedstuff industry (95% of sales); existing shareholders 

have a relatively low stake in this at 15% 

• International expansion in grain business 

�This gives BayWa a leading market position in Europe 

• Expansion into new source markets, above all in eastern Europe 

(Poland, Romania, Hungary, Baltic countries) and South America 

� Cefetra has access to growth markets / but has no capital tied up in 

politically unstable markets 

• Larger product range (e.g. soya) and wider customer base (esp. 

access to international feedstuff companies) 

• Expansion and combination of market research activities – better 

leverage from price differences and increased supply security 

Network 

CANADA 

IRELAND 

Property (silos) 

Branch (leased) 

Long-term lease (port) 

Short-term lease (port) 

UK 

Key financial indicators 

€ mill. 

5000 

4000 

3000 

2000 

1000 

0 

0,9% 

1,0% 

NETHERLANDS 

FRANCE 

BELGIUM 

DEUTSCHLAND 

GERMANY 

1,0% 

POLEN 

POLAND 

LATVIA 

HUNGARY 

RUMÄNIEN ROMANIA 

0,9% 

0,2% 

2583 3649 3000 3669 4605 

2007A 2008A 2009A 2010A 2011A 

Sales (mill. t) 

Revenue 

EBIT 

Equity 

Employees (avg).) 

Revenue EBIT margin 

1,2% 

1,0% 

0,8% 

0,6% 

0,4% 

0,2% 

0,0% 

1 

9

Cefetra’s core business activities: procurement, logistics and 

marketing for soya and grain 

Global procurement – Cefetra is active in world’s growth markets 

Grain (38%) 

Soya (36%) 

Rapeseed 

Citrus pulp 

Palm kernel expellers 

Tapioca 

Sales figures and target markets – greater focus on animal feed industry 

Poland Polen6% 6% 

Belgien 

Belgium 10% 

10% 


< 26% 

Sales by target markets in 2011 

∑19.6 million t 

Other/Capital Diverse / Market 

Kapitalmarkt 11% 

Baltische 

11% 

Baltic 

Staaten 

Countries 

4% 

4% 

Deutschland 

Germany 

15% 

15% 

Niederlande 

The Netherlands 

38% 

UK/Irland 

UK/Ireland 

16% 

16% 

Grain-free 

Ingredients Getreide- 

(NGFI) 

freie 

9% 

Zutaten 

(NGFI) 

9% 

Press Kuchen/ 

cake/seed Saaten 

17% 

17% 

Soya Soja 

36% 

− Soya from Argentina, Brazil, North America, Canada 

− Grain from Canada, South America, eastern Europe 

− Palm kernel expellers from Indonesia and Malaysia 

− Rapeseed from Argentina, Australia and 

Canada 

− Tapioca from Thailand 

− Citrus pulp from Brazil and USA 

Sales by product group in 2011 

∑19.6 million t 

Getreide Grain 

38% 38% 

10

Great flexibility thanks to international procurement and international 

sales 

Business model 

International procurement 

Procurement 


Procurement 

Organized centrally 

by Cefetra 

• Flexibility in choice of supplier due to longterm 

involvement with over 1,500 different 

suppliers 

• Independent of local infrastructures due to 

centralized procurement structure 

• Long-term framework contracts with several 

suppliers (approx. 20% of annual supply) 

• 5 biggest suppliers handle only 15% of 

supplies 

Organization and responsibilty 

at Cefetra 

Transport 

Logistics - 

warehousing 

and dispatching 

Risk management 

Transport handled by 

shipping companies 

Sales & 

distribution 

Organized by Cefetra, 

supplied by shipping 

companies 

Logistics Distribution 

• Expertise and experience in 

logistics/transport thanks to a specialized 

trade team 

• Purchase of international freight helps 

minimize logistics costs 

• Logistics network thanks to regional 

procurement activities and quick delivery to 

customers 

• Secure long-term access to three deepwater 

ports and over 23 silos throughout Europe 

Multiple 

destinations 

Multiple 

products 

Multiple 

customers 

• “Multi-multi” approach provides opportunity to 

market different products in different 

locations for different uses 

• Independence thanks to highly diverse 

customer base with over 700 customers in 

northwest and central Europe 

• Current owners account for just under 15% of 

sales 

11

Agenda 


1 

2 

3 

4 


Cefetra B.V. 


BayWa AG – an international agricultural business 

12

Bohnhorst Agrarhandel - acquisition of an agricultural trader with a 

local collection structure and an international trade structure 

In brief Network 

• Company: Bohnhorst Agrarhandel GmbH 

• HQ: Steimbke, Lower Saxony 

• Port facilities: 2 on Baltic Sea, Weser river, Mittelland canal 

• Region of operations: northeast Germany and Poland 

• Warehouse capacity: approx. 250,000 t (2011) 

• Employees: 213 (2011) 

• Units (revenue in 2011: €468 million): 

Strategic justification Key financial indicators 

• This acquisition gives access to markets in key strategic locations 

in northeast Germany – BayWa is now active throughout eastern 

Germany 

• Sites at ports provide direct access to the Baltic Sea, the Mittelland 

canal and Weser river 

• The sites are suitable for further expanding business in northeast 

Germany and Poland 

• Logistics structures suitable for imports, e.g. from Russia 

• Substantial potential for expanding equipment business (seeds, 

fertilizers, pesticides) 


• Agricultural trade (approximately €310 million) 

• Feedstuff (approximately €40 million) 

• Operating resources (approximately €100 million) 

• Other & services (approximately €18 million) 

500 

€ mill. 

0 

313 

Poland 

Bohnhorst 

Locations 

446 406 388 468 

6,7% 

10,0% 

2,8% 3,1% 2,2% 2,6% 

6,2% 5,0% 

2,4% 2,7% 1,7% 

2,0% 

0,0% 

2007 2008 2009 2010 2011* 

Umsatz Revenue in in Mio € mill. EUR EBIT Marge margin EBITDA Marge margin 

In € millions 2007 2008 2009 2010 2011 Ø 

Revenue 313.1 445.5 406.2 387.9 468.3 404.2 

EBITDA 8.9 13.6 9.1 10.1 31.1 14.6 

EBIT 7.5 11.9 7.0 7.9 29.1 12.7 

Equity 11.5 17.7 22.3 26.6 46.7 25.0 

Employees 

(average) 184 183 192 199 213 194 

13

Complementary network of locations with 250,000 t of warehouse 

capacity plus access to deepwater and inland ports 

Steimbke 

• Capacity: 3,000-5,000 t 

• Administration 

Nienburg 

• Capacity: 35,000 t 

• Port location on middle 

reaches of the Weser 

• Warehouse right beside river 

• Leased by staff to Bohnhorst 

Agrarhandel 

Hohenseefeld 


• Classic “inland 

warehouse” 

• Fertilizer mixing plant 

• Two locations 

Petkus Kölleda 

Großmühlingen 

Ketzin 


• 10 km from 

Hohenseefeld 

• Can be expanded: 

warehouses for 

affordable lease in 

vicinity 


Belgium 

North Sea 

The Netherlands 

• Capacity: 8,000-10,000 t 

• Connection: full/trains 

with special routes 

• On-site gas station 

Denmark 


• Near Cargill’s processing 

facility 

• High competition levels 

� no expansion 

• Capacity: 60,000 t, with 

40,000 t of this from silo 

• Port location with access 

to Mittelland canal 

• East. point for unimpeded 

use of inland waterways 

• Expansion area: 20 ha 

Baltic Sea 

Poland 

Bergholz 

• Capacity: approx. 10,000 t 

• Leased warehouse 

• Purchase possible 

Mukran 

• Refurbished in 2011/12 

• Deepwater port for ships of 

up to 25,000 t 

• Warehouse right at ferry port 

• Covers entire Rügen farming 

region 

• Large-gauge rail connection 

for Russian imports/exports 

Stettin 

• No facility 

• Acquisitions company 

collecting from Polish sites 

and purchasing operating 

resources 

• Feeder role for German sites 

Vierow 

• Cargo volume: 500,000 t 

p.a. 


• Can service ships of up to 

7,000 t net 

• New rail connection in 

2011/12 

Züssow 


• Feeder role for Vierow port 

14

Bohnhorst’s deepwater ports – attractive logistics locations for 

BayWa and Cefetra on the Baltic 

Mukran Description 

Vierow Description 


• Deepwater port – docking facilities for ships with freight capacity 

of up to 25,000 t 

• Mixing, refining, storage and forwarding grain and other 

agricultural produce 

• Direct connection to loading ramp / pier’s edge – goods handled 

faster thanks to modern equipment for transporting bulk materials 

from terminal to mooring site 

• Direct access and use of rail tracks (Russian wide-gauge + 

German gauge) 

• 15,000 t storage capacity at warehouse for agricultural produce 

(1,900m² in area) 

• Deepwater port – docking facilities for ships with freight capacity 

up to 7,000 t (max. draft of 6.5 m for ocean-going ships) 

• Pier with 2 mooring sites – quays 140m and 120m long 

• New rail connection since 2012 – inexpensive reloading 

• 10,000 m² secured open-air storage facility / 15,000 m² covered 

warehouse 

• Grain storage capacity: approx. 70,000 t 

• Excellent transport connections (25 km to A20 highway), access 

to European inland waterway network 

15

Agenda 


1 

2 

3 

4 


Cefetra B.V. 



16


BayWa – group with approximately €10 billion in revenue 

in agricultural segment 

Cefetra 

Netherland 

210 employees 

International 

agricultural trade 

Bohnhorst 

Lower Saxony 

213 employees 

European 

agricultural trade 

BayWa agricultural 

trade 

Munich 

3,700 employees 

European agricultural trade 

BayWa Ports 

Cefetra Ports 

Bohnhorst Ports 

Revenue: 

Revenue: 

approx. €4.5 billion + approx. €5.0 billion + = 

Baltic 

Revenue: 

Total 

Agrar 

approx. €0.5 billion 

The port locations controlled by BayWa, Cefetra and Bohnhorst complement each other perfectly. 

Secure logistics chain from CEE to western Europe 

Revenue: 

approx. €10 billion 

17

Cefetra + Bohnhorst: ideal enhancement along value chain 

Cefetra 

Bohnhorst 


Procurement Domestic trade 

� Diversification of 

procurement (multiregional 

/ multiproduct) 

� Access to eastern 

European and 

international 

commodities markets 

� Collection capacity 

extended to northern 

and eastern Germany 

� Securing home 

market 

� Diversification of 

procurement 

International 

trade 

Warehousing 

� Joint use of infrastructure (collection locations and port 

facilities) 

� Risk spread thanks to wide business base, better use of price 

differences and multiple commodities markets 

� Diversification of product range 

� Greater awareness of price developments on international 

markets 

� Joint use of infrastructure (collection locations and port 

facilities) 

� Strengthening trade activities in northern Germany 

� Substantial expansion potential for operating resources 

business (seeds, fertilizers, pesticides) 

� Expansion of storage capacities in northern and eastern 

Germany 

Processing & sale 

� Preferred supplier for highrevenue 

feedstuff markets in 

Europe 

� New customer base generates 

optimum marketing opportunities 

for BayWa product range 

Result: a European agricultural trading company with access to international procurement and distribution networks 

� Well-established agricultural trader 

with good collection structures in 

northern/eastern Germany 

� Comprehensive access to ports 

� Good ties to customers in 

Scandinavia and Mediterranean 

region 

18

Comparison of business models – very little overlap 

Range of services 

Market 

Infrastructure 


Collection 

Operating 

resources 

Consulting 

Trade 

Procurement 

Sales 

Customers 

Warehousing/ 

logistics 

Importance in business model 

Not part of business model 

Grain collection at approx. 

300 agricultural locations, 

mainly in southern Germany 

+ processing and drying 

Full range of operating 

resources 

Research stations in area 

of operations 

Regional crop planting 

and feedstuff consultants 

Grain for brewing and 

feedstuff, wheat, maize, 

rapeseed, oilcake, soya, 

operating resources 

Mainly Germany and 

Austria 

Mainly within 

Germany, Austria, 

Czech Republic and 

Hungary 

Mills in domestic markets, 

malting facilities, 

wholesalers, feedstuff 

industry, etc. 

1.8 million t storage 

capacity (produce) 

18 port locations in area of 

operations 

12 locations in 

northern and eastern 

Germany 

Certain products; has 

substantial potential for 

expansion 

No specialized 

consultancy services 

Grain (90%), legume and 

oilseed trade 

Mainly Germany, 

Poland, Russia and 

Hungary 

Approx. 75% revenue in 

Germany, rest concentrated in 

Scandinavia, UK and 

Mediterranean region 

International export, mills, 

malting facilities, 

wholesalers 

Several port locations with 

deepwater access and access to 

Mittelland canal 

Storage capacity of 250,000 t 

Direct collection in 

Poland / 

intermediary trade at 

port terminals 

No operating resources 

No specialized 

consultancy services 

Soya and wheat (70%) 

trade 

International 

procurement 

(Europa, USA and 

South America) 

Focus on Benelux (40%) 

and UK (17%) as sales 

markets 

Feedstuff industry 

(95%) 

Company owns and leases 

storage and handling 

facilities throughout Europe 

Formation of group-wide strategy committee 

19

Global sourcing on all continents and trade volume of approx. 30 

million t. 

Global procurement – BayWa is active in world’s growth markets 

Agrar 

Grain 

Soya 

Rapeseed 

Citrus pulp 

Palm kernel expellers 

Tapioca 

Trade volume: 


Trade volume: 

Baltic 

Trade volume: 

5.6 million t + 1 9.6 million t + 

1.9 million t = 

Together Baltic Total 

Trade volume: 

approx. 30 million t 

20

Thank you. 

The information in this document includes forecasts based on 

current assumptions and subject to as-yet unknown risks. 

If the assumptions regarding the integration of the acquired 

companies and further internal growth at the company fail to 

materialize or if other, as-yet unknown risks arise, this might have 

a negative impact on the company’s actual asset, financial and 

revenue situation when compared to the figures contained in this 

document. 

BayWa AG cannot therefore guarantee that the company’s actual 

asset, financial and revenue situation will be identical to the figures 

contained in this document.

Presentation english - BayWa

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