Revenues - BayWa

baywa.com

Revenues - BayWa

BayWa Group

Interim Report as at 30 September 2010

Conference Call, Call 11 November 2010

> Klaus Josef Lutz, Chief Executive Officer

1


2

Agriculture

Market developments in the third quarter of 2010

� Lower harvest volume following bumper harvest in 2009 causes the price of wheat to surge

� High producer prices and damp weather conditions encourage farmers to sell

� Strong operating resources business – recovery in the demand for fertilisers

� Trends indicate economic activity in the agriculture sector is on the rise - increasing willingness to invest

Buildingg Materials

� Recovery of the construction sector economy at a low level

� Number of residential building permits climbs after historic lows

� Stable consumer trend in the retail business (DIY & Garden Centres)

� Seasonally-induced catching up effects

Energy

� IIncrease iin hheating ti oil il sales l bbut t still till bbelow l year-earlier li llevel l ( (ca -7%) 7%)

� Filling levels (oil) of tanks in private households slightly below the level customary at this time of the year

� Economic recovery boosts lubricants business

� Decline in the solar business from cuts in government promotion of solar energy lower than expected


Development of the Group

3


4

[in EUR m]

2.500

2.000

1.500

1.000

500

0

[in EUR m]

30

20

10

0

1,888

Q3/2009

19.1

Q3/2009

10.1%

55.5%

Revenues and EBIT in Q3 of 2010 against previous year

2,078

Q3/2010

29.7

Q3/2010

Revenues

� EUR 2,078 million (∆ 10/09: +EUR 190 million / +10.1%)

� Recovery of the fertiliser business

� Strong development in retail (DIY)

� Level of revenues benefits from BayWa y r.e.

EBIT

� EUR 29.7 million (∆ 10/09: EUR +10.6 10.6 million / +55.5%) 55.5%)

� Best quarterly results after the exceptional year of 2007

� No impairment charges for fertiliser in 2010

� IIncrease iin hheating ti oil il sales l ffollowing ll i a weakk fi firstt hhalf-year lf


5

[EUR m]

45

40

35

30

25

20

15

10

5

0

25.8

2006

+61%

Year-on-year (Q3) comparison of EBIT

41.66

2007

‐35%

27.0

2008

‐29%

19.1

2009

+55%

29.7

2010

Ø 28,6

Q3


[in EUR m]

[in EUR m]

6

1‐9/2009

1‐9/2009

4.5%

20.4%

Revenues and EBIT in 1-9 of 2010 against previous year

1‐9/2010

1‐9/2010

Revenues

� EUR 5,855 million (10/09: EUR +251 million / +4.5%)

� Agriculture Segment at previous year‘s level

� Energy Segment with swift growth (price-induced+ BayWa r.e)

� Buildingg Materials Segment g Bau raises sales through g new

DIY& GC

� Disposal of car dealer operations (EUR -135 million)

EBIT

� EUR 86 million (∆ 10/09: EUR +14.6 14.6 million / +20.4%) 20.4%)

� Higher sales volumes in the op. resources business (fertilisers)

� Contribution to profit of just under EUR 10 million by BayWa r.e;

compensates seasonal decline in oil business (EUR -8.3 83million) million)

� Special effect from the disposal of the Animedica investment

(around EUR 5.2 million)


7

Year-on-year comparison

in EUR m 1-9 2007 1-9 2008 1-9 2009 1-9 2010 ∆10/09 (%)

Revenues 5,277.2

EBITDA 171.6

6,742.5

207.2

5,604.4

141.8

5,855.4

157.7

4.5%

11.2%

% of Revenues 3.3% 3.1% 2.5% 2.7%

EBIT 104.3 134.5 71.4 86.0 20.4%

% of Revenues 2.0% 2.0% 1.3% 1.5%

EBT 67 67.8 8 92 92.2 2 40 40.4 4 55 55.8 8 38 38.1% 1%

% of Revenues 1.3% 1.4% 0.7% 1.0%

Consolidated net income 53.0

TTax rate t 21 21.8% 8% 21 21.9% 9% 25 25.0% 0% 23 23.9% 9%

72.0

30.3

42.5

40.3%

Share of minority interest 22.7 18.3 11.8 14.2 20.3%

as % of net income 42.8% 25.4% 38.9% 33.4%

Share of owners of parent company 30.3 53.7 18.5 28.3 53.0%

as % of net income 57.2% 74.6% 61.1% 66.6%

Earnings per share (EPS) in EUR 0.89 1.58 0.54 0.83

53.7%


8

Key data – balance sheet (IFRS)

in EUR million 1-9 2009 1-9 2010 ∆10/09 (%)

Total assets

2,939.3 3,440.9

Equity

957.5 984.0

Equity ratio 32.6% 28.6%

17.1%

iin EUR million illi 11-9 9 2009 11-9 9 2010 ∆10/09 10/09 (%)

Non-current assets

1,427.2

Current assets 1,507.4

Provisions 590.7

Financial liabilities 664.6

1,438.8

1,959.3

598.0

757.3

2.8%

0.8%

30.0%

1.2%

13.9%


9

Cashflow

In EUR m 1-9 2009 1-9 2010 ∆10/09 (%)

Consolidated net income

94.9

Cash flow from operating activities 23.1

114.7

47.9

20.9%

107.4% %

Cash flow from investing activities - 55.1 - 94.0 70.6%

Cash flow from financing Activities 28.9 56.7 96.2%

Cash & cash equivalents at the start of the period

Cash & cash equivalents at the end of the period

16.1

13.1

19.7

33.2

22.4%

153.4%


Development of the Segments

10


11

BayWa Agriculture

� Seeds

� Fertilisers l

� Crop protection

� Grain

�� Feedstuff

� Fruit

� Agricultural equipment


12

Developments in 1-9/2010

Development of operating resources

� Strong demand for fertilisers (price level rising gradually)

� Stable demand for seed

� Competition exerts pressure on crop protection margins

Development of agricultural produce

� Sharp increase in grain prices from end of Q2 onwards (drought and speculation)

� Collection and storage of harvest above year-earlier level

� Processing and drying of grain harvest due to weather conditions

Development of agricultural equipment

� Order intake around 25% higher than a year ago (tractors)

� Incoming liquidity encourages greater willingness to invest


13

[in EUR m]

3.000

2.000

1.000

0

[in EUR m]

50

40

30

20

10

0

2,560

1,927

1‐9/2009

32.1

21.8

0.4%

38.6%

Revenues and EBIT in 1-9 of 2010 against previous year

2,571

1,944

1‐9/2010

44.5

36.4

10,3 8,1

1‐9/2009

1‐9/2010

Agrar

Technik

Agrar

Technik

Revenues

� Agriculture ∆ 10/09: EUR +17 million (+0.9%)

� Agricultural Equipment ∆ 10/09: EUR -6 million (-0.9%)

� Sales at previous year‘s level

� Sale of operating p g resources stable; fertiliser prices p

� Sale of grain in H1/2010 at low price level

� Agricultural Equip.: increased order intake

EBIT

� Agriculture ∆ 10/09: / EUR + 14.6 million ( (+67.0%) %)

� Agricultural Equipment ∆ 10/09: EUR – 2.2 million (-21.4%)

� Fertiliser problem (2009) no longer an issue – raises profit

� Agricultural equip. with effects delayed to Q4/2010


14

Year-on-year comparison

in EUR m 1-9 2007 1-9 2008 1-9 2009 1-9 2010 ∆10/09 (%)

Revenues 2,414.1

EBITDA 83.2

3,179.1

128.3

2,559.8

61.4

2,570.9

74.9

0.4%

22.0%

% of Revenues 3.4% 4.0% 2.4% 2.9%

EBIT 53.3 96.1 32.1 44.5 38.6%

% of Revenues 2.2% 3.0% 1.3% 1.7%

EBT 32 32.4 4 68 68.3 3 11 11.9 9 26 26.0 0 118 118.5% 5%

% of Revenues 1.3% 2.1% 0.5% 1.0%


15

Trend of market prices

Wheat B-wheat, Hamburg, 02/11/2010

tbd


Grain Balance - World and Usage

in EUR m 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11*

Production 1,862 2,042 2,017 2,002 2,124 2,237 2,222 2,200

Beginning g g Balance 429 355 403 389 342 364 448 474

Available 2,291 2,397 2,420 2,391 2,466 2,601 2,670 2,674

Consumption 1,936 1,994 2,031 2,049 2,102 2,153 2,196 2,245

Ending Balance

Stock / Consumption in

355 403 389 342 364 448 474 429

% 18 20 19 17 17 21 22 19

Days in Ending Stock 67 74 70 61 63 76 79 70

[I [In millions illi off ttons, wheat, h t rice, i maize, i bbarley, l oats, t rye, sorghum] h ]

Status: 09/2010; *2010/11 forecast; figures partly estimated

SSources: DRV DRV, ACTI Schumacher, S h h DOWJ DOWJones, BBayWa W

16


17

Trend of market prices

Urea CAN

Granulated urea ex Baltic Sea Ports Ports,

Calcium ammonium nitrate ex Baltic Sea Ports Ports,

02/11/2010

02/11/2010


18

BayWa Building

Materials

� Building Materials

� DIY & Garden d Centres


19

Development in 1-9/2010

Development p of Buildingg Materials

� Slow start to the season due to the weather and project delays (Q3)

� Increase in modernisation and refurbishment activities in residential construction

� Increase in the warehousing business over the course of the year

� As from Q3, result positive

Development p of DIY & Garden Centres

� Catching up effect in the retail business (Q3)

� Optimisation of product mix having positive effects

� Very good start to business of refurbished garden centres in Backnang, Illertissen and

Grafenau

� Garden business suffered from cold weather in the spring


20

[in EUR m]

1.500

1.000

500

0

[in EUR m]

1,341

986

355

1‐9/2009

16 16.33

7.9

7.5%

2.5%

1,441

1,024

417

1‐9/2010

16 16.77

6.8

1‐9/2009 1‐9/2010

Revenues and EBIT in 1-9 2010 against previous year

Baustoffe

B&G

Baustoffe

B&G

Revenues

� Building Materials ∆ 10/09: EUR + 38 million (+3.9%)

Increase in roof business and tradingg in solar components p

Slight economic recovery in the construction sector

� DIY & Garden Centres ∆ 10/09: EUR + 62 million (+17.5%)

EBIT

Sales growth through larger sales area and product mix

optimisation

� Building Materials ∆ 10/09: EUR -1.1 million (-13.9%)

Delays in projects and due to the weather

� DIY&Garden Centres ∆ 10/09: EUR +1.5 million (+17.8%)

Increase in profit due to non-recurrent costs for opening

new centres


21

Year-on-year comparison

in EUR m 1-9 2007 1-9 2008 1-9 2009 1-9 2010 ∆10/09 (%)

Revenues 1,281.4

EBITDA 40.3

1,354.6

45.0

1,341.1

41.2

1,441.4

39.8

7.5%

-3.4%

% of Revenues 3.1% 3.3% 3.1% 2.8%

EBIT 17.7 20.2 16.4 16.8 2.4%

% of Revenues 1.4% 1.5% 1.2% 1.2%

EBT 65 6.5

75 7.5

76 7.6

80 8.0 53% 5.3%

% of Revenues 0.5% 0.6% 0.6% 0.6%


22

BayWa Energy

� Fuel

� Heating oill

� Lubricants

� Solid biofuels

�� BayWa rr.e e


23

Development in 1-9/2010

Development of Energy (conventional)

� Rising demand for heating oil from H2 onwards

� At the end of Q3, levels of filling tanks in private households still slightly below average

levels for the time of the year (around 60%)

� Fuel oil: margin trend remains stable

� Development of lubricants business higher y/y due to influence of economy

Development of BayWa r.e

� DDevelopment l t off BBayWa W r.e iin li line with ith plan l

� Profit generated in particular by solar business

� First project sale (La BenateWind Park in France)

� Completion of on-roof solar plant in Barcelona‘s harbour


2.000

1.500

1.000

24

[in EUR m]

500

0

[in EUR m]

11,367 367

26.8%

Revenues and EBIT in 1-9 2010 against previous year

1,734

1,525

209

1‐9/2009 1‐9/2010

10.1%

15 15.22

5.4

1‐9/2009 1‐9/2010

Konv. Energie

BayWa r.e

Konv. Energie

BayWa r.e

Revenues

� Energy (conventional) ∆ 10/09: EUR + 158 million (+11.6%)

� Pi Price-induced i d d iincrease iin revenue ffrom conventional ti l ttrading di

� Rising volume of sales from lubricants

BayWa r.e: EUR + 209 million

� Solar boom due to cuts in a feed-in tariffs at mid-year drives

BayWa r.e‘s revenues

EBIT

� Energy (conventional) ∆ 10/09: EUR -8.4 million (-60.9%)

� Volume-induced decline; demand for heating oil still modest

owing to high oil prices

BayWa r.e: EUR + 9.8 million

� Profit contribution by MHH Solartechnik of around EUR 9.5

million


25

Year-on-year comparison

in EUR m 1-9 2007 1-9 2008 1-9 2009 1-9 2010 ∆10/09 (%)

Revenues 1,271.5

EBITDA 9.0

1,837.3

13.0

1,366.8

20.1

1,734.8

25.1

26.9%

24.9%

% of Revenues 0.7% 0.7% 1.5% 1.4%

EBIT 3.4

7.0 13.8 15.2 10.1%

% of Revenues 0.3% 0.4% 1.0% 0.9%

EBT 25 2.5

74 7.4 13 13.0 0 13 13.3 3 23% 2.3%

% of Revenues 0.2% 0.4% 1.0% 0.8%


26

BayWa Other

Activities

Food production


27

[in EUR m]

[in EUR m]

337

‐67.7%

109

1‐9/2009 1‐9/2010

3.3%

1‐9/2009 1‐9/2010

Revenues and EBIT in 1-9 2010 against previous year

Revenues

� Ybbstaler: EUR 74.1 million

� Frisch & Frost: EUR 34 million

� ∆ 10/09: EUR -228 million (-67.6%)

�� Decline in revenues due to disposal of car dealer operations

as from 1 October 2009

EBIT

� ∆ 10/09: EUR +0.3 million (+3.3%)

� Increase in profit through disposal of Animedica stake

� Ergebnis Frisch & Frost around EUR 2 million lower y/y

�� Disposal of car dealer operations: benefited from scrap

premium in 2009

� Ybbstaler around EUR 0.2 million lower y/y


28

Year-on-year comparison

in EUR m 1-9 2007 1-9 2008 1-9 2009 1-9 2010 ∆10/09 (%)

Revenues 310.3

EBITDA 39.1

371.5

20.9

336.7

19.0

108.8

18.0

-67.7%

-5.3%

% of Revenues 12.6% 5.6% 5.7% 16.5%

EBIT 29.9 11.2

9.2

9.5 3.3%

% of Revenues 9.6% 3.0% 2.7% 8.8%

EBT 26 26.4 4 91 9.1

78 7.8

85 8.5 90% 9.0%

% of Revenues 8.5% 2.4% 2.3% 7.8%


29

Outlook in 2010

BayWa Agriculture

� Good grain sales potential due to inventory stockpiles

� Collection and storage business likely to be weaker than in 2009

� Grain prices: sideways movement anticipated at a high level

� Stable incoming liquidity boosts operating resources and agricultural equipment business

� Agriculture Segment : anticipates an increase in revenues and profits as against the year-earlier

figures

BBayWa W BBuilding ildi Materials

M t i l

� Building Materials: delaying effects likely to boost performance in the final quarter

� Overall development of the Building Materials business unit falls short of expectations despite

possibility of increase as against the year-earlier figure

� DIY&GC: slight growth anticipated from optimisation of product mix and DIY and garden centres

� Consumer behaviour more stable owing to economic situation

� Building Materials Segment: following quarters depend greatly on the weather and the economy

BayWa Energy

� Fuel: winter quarter likely to boost order volumes further (heating oil)

� Record result in 2009 from conventional energy gy business cannot be repeated p

(higher oil prices as against previous year – weaker consumer demand and margins)

� Further reductions of tariffs under the German Renewable Energies Act (EEG) to provide

stimulus for the solar business before the year ends

� Completion and sale of projects (and plants) planned for the final quarter

BayWa r.e‘s EBIT target of EUR 20 million on track


30

The BayWa Share


31

BayWa Share

Share price performance

from 30/09/2009 until 01/11/2010

Share

Share

Closing price on 30/09/2009 € 25.03

High (01/11/2010) € 31.50

Low (28/10/2009) € 21.47

Closing price on 30/09/2010 € 30.23

Market capitalisation in € million

As per p 30/09/2009 683.47

As per 30/09/2010

Free float market cap.

1,031.10

(30/09/2010) 407.77


32

BayWa Share 2010

Shareholder structure as per 30/09/2010

Free float

39.55

35.33

Raiffeisen Agrar

Invest GmbH

25.12

Bayerische

Raiffeisen‐

Beteiligungs AG

More information on the BayWa share and share capital

Sept. 2010

Stock exchanges Frankfurt, Munich, Xetra

Segment Official Market/Prime Standard

Stock exch. index MDAX (Sec. code no. 519406)

ISIN DE0005194062

Share capital EUR 87,307,622.40

Number of shares 34,104,540

Denomination No-par No par value shares with an arithmetical portion of

EUR 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)


33

Financial Calendar 2010/11

November 2010

11/11 BBayWa W AG PPress CConference f Q3

11/11 BayWa AG

March 2011

Analysts‘ Conference Call Q3

30/03 BayWa AG Annual Results Press Conference

31/03 Frankfurt a.M. a M

May 2011

Analysts‘ Analysts Conference

12/05 BayWa AG Press Release Q1

12/05 BayWa AG

June 2011

Analysts‘ Conference Call Q1

15/06 ICM, München

August 2010

Annual General Meeting of Shareholders

04/08 BayWa AG Press Conference, Half-yearly Results

04/08 BayWa AG Analysts‘ Analysts Conference Call

November 2011

10/11 BayWa AG Press Conference Q3

10/11 BayWa AG Analysts‘ Conference Call Q3


34

Investor Relations Manager

Josko Radeljic

Arabellastr. 4

D-81925 München

Phone: +49 (0)89 ( ) / 92 22 - 38 87

Fax: +49 (0)89 / 92 12 - 38 87

Investor Relations contact

e-mail: investorrelations@baywa.de


35

Disclaimer

� The information in this presentation is partly made up of forward-looking statements which

are bbased d on assumptions ti and d are subject bj t tto unforeseeable f bl risks. i k

� In as much as the assumptions on the successful integration of acquisitions and on the

internal growth of the company should prove to be inaccurate, or should other

unforeseeable risks occur, the possibility of the assets, financial position and results of

operations p of the Group p diverging g g negatively g y from the target g figures g cited in this

presentation should not be discounted.

BayWa AG can therefore undertake no guarantee that the actual development of the net

worth, financial position and results of operations of the Group will concur with the target

figures described in this presentation.

More magazines by this user
Similar magazines