baywa group corporate presentation 2016

As of June 2016

BayWa GroupCorporate Presentation 2016

The BayWa GroupAt a Glance

Our Company

BayWa AG, Investor Relations 2June 2016

Leading trading and services group

Core segments of Agriculture, Energy undBuilding Materials

Corporate culture based on cooperative roots

Founded in Munich in 1923

Approximately 17,000 employees

Over 3,000 locations in 34 countries

Worldwide ca 290 affiliated companies

Listed company (SDAX)

The BayWa GroupSegment Breakdown

Our Structure

3

BayWa

BayWa AG, Investor Relations June 2016

Agriculture Energy Building Materials

Building MaterialsConventionalEnergy

BayWa r.e.renewable energy

BAST(BayWa Agri

Supply & Trade)

BAV(BayWa Agrar

Vertrieb)

Fruit

AgriculturalEquipment

DigitalFarming

Joined BayWa in2002 as a member ofthe executive board

Degree in businessfrom the UniversitätStuttgart

Previously served asmember of the boardat WLZ RaiffeisenAG, Stuttgart

Appointed CEO ofBayWa in 2008

Degree in law from theLudwig-Maximilians-Universität in Munich

Previously served asmanaging director atSüddeutscher VerlagGmbH

Joined BayWa in 2000as head of finance;CFO since 2010

Degree in businessfrom the UniversitätSiegen

Previously served as atax advisor andaccountant at KPMGDeutsche-Treuhand-Gesellschaft AG

Our Executives


The BayWa GroupManagement Board

Prof.Klaus Josef Lutz

Chief ExecutiveOfficer

Andreas HelberChief Financial

Officer Joined BayWa in

2015 as a member ofthe executive board

Degree in MechanicalEngineering from theTechnischeUniversität München

Additionally serves asCEO at BayWa r.e.renewable energyGmbH

Matthias TaftManagement Board

Member

Roland SchulerManagement Board

Member Joined BayWa in 2013

as a member of theexecutive board

Degree in agriculturaleconomics from theUniversität Wien

Additionally serves asCEO at Raiffeisen WareAustria AG and boardmember at Raiffeisen-Holding NÖ-Wien

Reinhard WolfManagement Board

Member

90 Years of BayWaMilestones

Our History

5

1923Founding in

Munich

1920sMechanisation of the

farming industry

1950sFirst Agri. Equip.sales locations

1960sIncreasing meat consumption:

feed factories expanded

1980sNew Business Segment:

Building Materials

1998Founding

1999Strategic alliance

2011Carve-out of DIY &

Garden Centres in JV.

2009Founding

2012Acquisition

2013Acquisitions

1970sFirst DIY & Garden

Centres; Investment inpetrol stations


2002Acquisition of

WLZ Raiffeisen AG

2014/15Expansion

Agri-Trading

BayWa AgrarInternational

2016New Division

Digital Farming

https://www.90jahre-baywa.de/chronik/krieg_neuanfang

Markets Agriculture Energy/

renewableenergies

BuildingMaterials

The BayWa GroupBusiness Model and Corporate Strategy

Our Direction

Strategy: Core ElementsBusiness Model

Profitable growth of the Group

Internationalisation of business

Development of new business areas

Expansion of digital product range

Partnerships and cooperations with other

enterprises

Value-driven management of the company

Ongoing cost optimisation

Sustainability of the Group‘s activities

6BayWa AG, Investor Relations June 2016

Operatingactivities Trade Logistics Services Finance Project development

Unique sellingproposition Customer

proximity throughfull-coveragenetwork for salesand logistics

Customers Farmers End customers Industry Commerce Trade Financial

investors

June 2016BayWa AG, Investor Relations

Countries in which companies of BayWa Group are based

7

Countries in which BayWa Group has sales offices

The BayWa GroupInternationally Positioned

Our Presence

The BayWa GroupBrand Values

BayWa – the strong partnerUmsätze 2012 [in Mio. Euro]Brand Values

8

Our Values

As a strong partner, BayWa stands for:

Trust: the basis for a strong partnership

Innovation: the development of newproducts and solutions for a partnershipthat is fit for the future

Solidity: the firm foundation for sustainablegrowth


The BayWa GroupKey Financial Figures

Operating EBIT 2015 [in EUR m]Umsätze 2012 [in Mio. Euro]Revenues 2015 [in EUR bn]

9

Our Data

1.5

3.3

10.1

14.9

68%

22%

10%

191.8

87.2

77.2

27.4


46%

40%

14%

The BayWa GroupKey Financial Figures

10

Multi-year Comparison


- Price-induced decline inrevenues (crude oil)

- ≈ 57% of revenues generatedabroad in the year 2015

in EUR m

Revenues

- Steady increase in dividendpayment

- Dividend yield of around3% in 2015

Dividend

- Earnings increase in achallenging marketenvironment worldwide

- Positive special items (bookgains) from disposal of realestate in 2012

in EUR m in EUR

EBIT

14,928

2015

9,586

2014

15,202

2012

CAGR 11.7%

15,958

2013

10,531

2011 20152011 2012

186.8

137.4

2013*

CAGR 1.5%

152.1

2014*

149.2 158.10.85

2015201420132011

0.80

0.60 0.65

CAGR 9.1%

0.75

2012* Figures adjusted mainly for effects from accounting of a finance lease in financial year 2013 and an early adoption of a new IFRS Standard. Details are described in the notes to the consolidated financial statements 2015, note B.7.

The BayWa GroupShare

Shareholder StructureShare Price Development 2015/2016

11

Our Data

Bayerische Raiffeisen-Beteiligungs AG

35.2%

Freefloat39.6%

Raiffeisen Agrar Invest GmbH25.2%

Dividend 2015: € 0.85

Stock exchanges Frankfurt, Munich, XetraSegment Official Market/Prime StandardStock exch. index SDAX (Sec. code no. 519406 & 519400)ISIN DE0005194062 und DE0005194005Share capital EUR 89,046,988.80Number of shares 34,783,980


BayWa (Sec. code no. 519 406)

Industry Trends & Business Segments

June 2016BayWa AG, Investor Relations 12

Global Challenge in the Agriculture Segment:High-Quality Food for Everyone


The Facts:

By 2050, the world’s population will grow by another

2 billion, reaching 9 billion people. Increasing prosperity in newly industrializing

countries is leading to changes in eating habits andincreasing demand for food.

The global arable land per person will decrease from0.3 to 0.2 hectares between 2000-2050.

BayWa‘s Role:

Supplying the agricultural industry:

With new and modern cultivation methods thatincrease agricultural productivity

By providing all operating materials for farmingand cultivation

By securing the supply of raw materials throughthe formation of an interconnected, globalstream of commerce

Our World

Agriculture SegmentOne-Stop Expertise

Our Business in 2015 € 10.1 bn Revenues, 10,094 Employees, 68% of Group Revenues


Trading and sales of agricultural products, inputresources, agricultural equipment and fruit.

Significant position as a full-line supplier: Largest agricultural trader in Germany Worldwide among the top 10

Nearly full coverage of the agricultural value chain

Organized into five business units:

Seed

Fertiliser

Crop protection

Feedstuff

Cultivation services

Pome fruit

Soft & stonefruit

Organic pomefruit

Tropical fruit

Vegetable fruit

Grain

Oilseeds

Co-Products

Supply ChainManagement

FruitBAV(BayWa Agrar Vertrieb)

BAST(BayWa Agri Supply & Trade)

April 2016 Agriculturalmachinery& equipment

Agricultural buildings

Workshop services

Spare parts

AgriculturalEquipment

April 2015 Smart & PrecisionFarming

Farm ManagementSoftware

BayWa Online World

Digital Farming

Agriculture SegmentBAST (BayWa Agri Supply & Trade)

Our Success


Procurement and sale of agricultural productsworldwide

Product portfolio comprises grain, oilseeds andsupplementary products

Trading of more than 30 million tons of grain andoilseeds a year

Global supply chain management and logisticsservices

Import and export of agricultural products throughown domestic and deep-water ports

Largest soya importer for the European feedstuffindustry

Agriculture SegmentBAV (BayWa Agrar Vertrieb)

Our Success


Collection, screening, processing, drying andstorage of agricultural products

Dense network with more than 230 locations inGermany

Cooperation with around 470 warehouses inAustria

Provision of own storage capacities for productsand input resources in excess of 3.1 million tons

Important sales partner for the fertiliser industryand seed sector

Germany’s number one in the trading of cropprotection products

Sale of feedstuff under the Bonimal brand

Supplier of 3 premium house brands: Planterra(seed), InnoFert (fertliser) and InnoProtect (cropprotection)

Agriculture SegmentFruit


One of the leading fruit traders worldwide

Year-round supplier of pome fruit from all over theworld

Diversified fruit portfolio with focus on soft & stonefruit, tropical fruit and vegetable fruit

Global trademark rights for the apple varietiesKanzi®, Greenstar®, Jazz® and Envy®

Guaranteed just-in-time delivery thanks to state-of-the-art packing and sorting technology

Own cold stores and mature chambers

Largest German supplier of pome fruit from organiccontract farming

Access to producers in northern and southernhemisphere

Our Success

Agriculture SegmentAgricultural Equipment

Our Success


Leading agricultural equipment trader:

One of the largest in Europe

No. 1 in Germany

Exclusive sales rights for the AGCO Group brands(Fendt, Massey Ferguson, Valtra and Challenger) inSouthern Germany and parts of Eastern Germanyas well as Claas in Southern Germany and JohnDeere in Austria

Dense service network with 523 mobile servicevehicles and 263 workshops

Largest national spare parts trader with access toover 10 million articles

Spare parts distribution via own internet platform(www.tecparts.com)

Agriculture SegmentDigital Farming

Our Success


Active shaping of digitalisation in agriculture, withvendor-neutral solutions for Smart Farming andPrecision Farming, e.g. for site-specific application

With the “Agrar Office” software, leading supplier inFarm Management for large-scale farms

New “Next Farming” product generation for smalland mid-sized farms

Development of prize-winning innovations:“Connected Nutrient Management”, an integratedsolution for organic and mineral fertilisation, as wellas “ICA-Wireless” irrigation management

Bundling of e-commerce activities under BayWaOnline World

Global Challenge in the Energy Segment:Clean Energy to Combat Climate Change

Our World


The Facts:

A growing world population combined with a risingstandard of living in newly industrializing countries isleading to increasing demand for energy.

This higher demand conflicts with greater ecologicalawareness.

Within the past 40 years, global CO2 emissions havedoubled.

BayWa’s Role:

Securing an ecological and sustainable energy supply

Being a strong partner for renewable energy projectsthrough the founding of BayWa r.e.

Offering environment-friendly energy products, even inthe conventional energy sector

Energy SegmentSustainable Solutions for a Brighter Future

Our Business in 2015 € 3.3 bn Revenues 1,825 Employees 22% of Group Revenues


Organised into the business units of ConventionalEnergy and Renewable Energies

Conventional Energy encompasses the sale anddistribution of fossil-based and renewable heatingmaterials, fuels, lubricants and AdBlue

Renewable energy activities bundled in the holdingcompany BayWa r.e. renewable energy

Position as a project developer and trader in theareas of solar, wind, biomass and geothermalenergies

ConventionalEnergy

BayWa r.e.renewable energy

Trade, Project Development &Financing, Consulting, Service

Solar energy

Wind energy

Biomass energy

Geothermal energy

Logistics, Sales &Distribution, Trade, PetrolStations

Heating oil

Diesel fuels

Otto fuels

Solid fuels

Lubricants

AdBlue

Energy SegmentConventional Energy


Strong position in the heating oil trade: Largest independent trader in Southern

Germany One of the largest in Austria

Market leader in Germany with regard to engineoil for biogas CHP-engines andmultifunctional-oils

Market leader in wood pellets in SouthernGermany

Extensive product line offered in the e-shop andenergy-saving shop

Own petrol station network in Germany with ca.240 stations; supplier of 460 petrol stations inAustria

Our Success

Energy SegmentBayWa r.e. renewable energy

Our Success


Full supplier for the renewable energies business

Presence in the most important markets in Europeas well as North America and Southeast Asia

About 1,430 MW capacity added to the grid (windfarms and solar parks)

Project rights for 1,000 MW of wind and solarenergy secured

Installation of more than 1,000 MWp in solarmodules

Premium provider of green electricity and greengas as well as contracting solutions; more than 2.7TWh Biomethane traded

Global Challenge in the Building Materials Segment:Building Efficiently and Ecologically


The Facts:

The average person spends 90% of his or her timein enclosed spaces.

The air pollution indoors can be up to 50 timeshigher than outside.

Construction is changing – worldwide there is astronger tendency towards energy-efficient andsustainable building.

BayWa’s Role:

Increasing quality of life

Offering a complete product line for newconstruction, renovation and modernisation toachieve energy-efficient and sustainable solutions

Supporting innovative research projects such as theEffizienzhaus Plus (energy-efficient house) inBurghausen, Germany

Our World

Building Materials SegmentMore Than Just Building Materials

€ 1.5 bn Revenues 4,178 Employees 10% of Group Revenues


Building Materials

Civilengineering

Extensions

Roofing

Construction

Building servicesengineering

Photovoltaicsolutions

Selling and supplying building materials of allkinds to commerical and private customers

Finding qualified craft businesses and taking overconstruction site logistics

Supplying system solutions such as full facades Additional services such as funding and energy

consultation

Construction activities through own buildingservices engineering

Supervision and support of franchise partners inGermany and abroad

Energy-efficientbuilding

Associated services

Healthy-livingconstruction

Our Business in 2015 € 1.5 bn Revenues 4,093 Employees 10% of Group Revenues

Building Materials SegmentBuilding Materials


Second-largest building materials trader inGermany

221 locations in Germany and Austria

Highly qualified specialists: 100+ trained energyconsultants

Efficiency: over 2,000 truck deliveries per day, onaverage

More than 290,000 satisfied customers

Our Success

Global Challenge:Doing Business Sustainably

Our World


The Facts:

Economic success is only possible in the long term ifit creates added value for society and keeps negativeenvironmental effects to a minimum.

BayWa’s Contribution:

BayWa works continously to keep the effects of theirproducts and processes on the environment andclimate to a minimum.

The company takes responsibility for the well-being ofits employees.

BayWa is an innovative partner, supporting theircustomers in their effort to live and conduct businessin a responsible manner.

BayWa uses the dialogue with its stakeholders –customers, suppliers, employees, shareholders andsociety – to identify social and environmentalchallenges.

BayWa supports theircustomers with innovativeproducts and services by: Providing healthy living

goods and energyefficient products

Providing organic pomefruit

Promoting the expansionof renewable energies

BayWa creates added valuefor society by: Supporting BayWa

Foundation in its efforts toimprove the quality of lifefor disadvantaged peoplein Germany and abroad

Sponsoring sport events,environmental protectionand education

Awarding grants forstudents

BayWa offers a safe andappreciative workplace by: Providing training

vacancies beyond theneeds of the company,giving young people thechance to start a career

Placing top priority onoccupational safety andhealth and acting in apreventative manner

Enabling a work-lifebalance

BayWa focusses on theintelligent use of naturalressources by: Recycling of packing

materials Using of green electricity

at the groupheadquarters and atvarious locations

Training their employeeson environmental issues

Changing their vehiclefleet to CO2-savingmodels

Sustainability at BayWaTrading through the generations


Environment/Climate Employees Quality of Life Market

Our Four Strategic Fields of Action

OutlookCorporate Goals


Ensuring Independence

Preserving shareholders’ interests: BayWa shouldremain a worthwhile investment for its shareholdersin the years to come and beyond

Ensuring appealing returns

Ensuring Sustainability

Profitable and sustainable business in the long termin all current and new fields

Responsible Corporate Conduct

Being a trustworthy partner for employees,customers, relevant stakeholders and society inharmony with the principles of the company mission

Our Future

Contact

BayWa AGSt.-Martin-Str. 7681541 MunichGermany

Telephone: +49 (0)89 9222-0Fax: +49 (0)89 9222-3448

www.baywa.com

Appendix:Strategically Relevant AffiliatedCompanies


AffiliatesBayWa r.e. renewable energy GmbH

Our Growth


Company: BayWa r.e. renewable energy GmbH

Headquarters: Munich, Germany

Revenues: ca. EUR 1.0 bn

Employees: approx. 840

BayWa stake: 100%

Locations: Austria, Croatia, Denmark, France,Germany, Italy, Japan, Mexico, Poland, Romania,Singapore, Spain, Sweden, Switzerland, UK, USA

Business fields: wind, solar, biomass, geothermal

Founded: 2009

Company purpose: project planning, trade andservices in the renewable energies sector

Affiliates and Projects

Projects

MEX

AffiliatesBayWa Agrar International B.V.

Our Growth


Company: BayWa Agrar International B.V.

Headquarters: Rotterdam, The Netherlands



BayWa stake: 100%

Subsidiaries: BayWa Agri Romania S.R.L., Bucharest,

Romania BayWa Marketing & Trading International B.V.,

Rotterdam, The Netherlands Cefetra B.V., Rotterdam, The Netherlands Cefetra S.p.A., Rome, Italy Cefetra Iberica S.L., Madrid, Spain

Founded: April 2014

Company purpose: holding for affiliates ininternational trading of agricultural commodities &supply chain management

BayWa AgrarInternational B.V.

CefetraS.p.A.

CefetraIberica

S.L.

BayWaAgri

RomaniaS.R.L.

CefetraB.V.

BMTIB.V.

GrainSoyaRapeseed

Citrus PuréeOil CakeTapioca

AffiliatesBayWa Agrarhandel GmbH

Our Growth


Company: BayWa Agrarhandel GmbH

Headquarters: Nienburg, Germany

Revenues: ca. EUR 450 m


BayWa stake: 100%

Port locations: seaports in Mukran and Vierow;inland ports on the Weser and Midland Canal

Business regions: Northeastern Germany andPoland

Storage capacity: approx. 300,000 tonnes

Consolidated: since Q2 2013

Company purpose: agricultural trade withinternational activities

Locations BayWa Agrarhandel GmbH

Agrarhandel GmbH

AffiliatesT & G Global Ltd.

Our Growth


Company: T & G Global Ltd.

Headquarters: Auckland, New Zealand


Employees: approx. 2,200

BayWa stake: 73%

Locations: Australia, Belgium, Canada, Chile,China, Fiji, Japan, New Zealand, Peru, Singapore,South Africa, UK, USA

Main products: apples, kiwis, tomatoes, citrus fruit

Consolidated: since April 2012

Company purpose: collection, processing and saleof fruits; international fruit trading

AffiliatesTFC Holland B.V.

Our Growth


Company: TFC Holland B.V.

Headquarters: Maasdijk, The Netherlands



BayWa stake: 68.4%

Stategic success factors: global sourcing network(40 countries); focus on ready-to-eat fruits preparedin own cold stores and mature chambers

Main products: avocado, mango, ginger, citrusfruits, lime

Consolidated: since March 2016

Company purpose: international collection,processing and sale of fruits

AffiliatesBayWa Obst GmbH & Co. KG

Our Growth


Company: BayWa Obst GmbH & Co. KG




BayWa stake: 100%

Locations: 7 locations in the regions of LakeConstance and Neckar

Main products: dessert pome fruit (apples, pears),soft and stone fruit

Consolidated: since January 2015

Company purpose: collection, processing,packaging and sale of fruits

Obst GmbH & Co. KG

AffiliatesRWA Raiffeisen Ware Austria AG

Our Growth


Company: RWA Raiffeisen Ware Austria AG

Headquarters: Vienna, Austria



BayWa stake: 50% + 1 share

Locations: 871

Business areas: agriculture, agricultural equipment,building materials, DIY & garden centres, energy

Consolidated: since 1999

Company purpose: wholesale and service activitiesfor the Lagerhaus cooperatives in Austria

Affiliates„Unser Lagerhaus“ WHG mbH

Our Growth


Company: „Unser Lagerhaus“ WHG mbH

Headquarters: Klagenfurt, Austria



BayWa stake: 51.27%

Locations: 104

Business areas: agriculture, agricultural equipment,energy, DIY & garden centers, building materials

Consolidated: since 1995

Company purpose: wholesale and retail activitiesfor the Lagerhaus cooperatives in Austria

AffiliatesBayWa Vorarlberg HandelsGmbH

Our Growth


Company: BayWa Vorarlberg HandelsGmbH

Headquarters: Lauterach, Austria



BayWa stake: 51%

Business areas: agricultural products, DIY &everyday products, building materials, petroleumproducts, farming and municipal machinery plusrepairs and services

Founded: 1995

Company purpose: wholesale and retail in Austria

AffiliatesRI Solution GmbH

Our Growth


Company: RI Solution GmbH




BayWa stake: 89.66%

Business areas: IT consulting, IT project planning,IT development and implementation, rollout,operation and maintenance of software solutions,strategic hardware and software purchasing

Founded: 2002

Company purpose: project planning,implementation, installation, operation and supportof highly diverse application solutions

Appendix:Group Financials


Group Financials


Our Business in 2015

Income Statement

in EUR m 2011 2012 2013* 2014* 2015 ∆14/15 (%)

Revenues 9,585.7 10,531.1 15,957.6 15,201.8 14,928.1 -1.8%

EBITDA 251.3 306.6 281.4 279.8 288.3 3.0%

% of Revenues 2.6% 2.9% 1.8% 1.8% 1.9%

EBIT 149.2 186.8 137.4 152.1 158.1 3.9%

% of Revenues 1.6% 1.8% 0.9% 1.0% 1.1%

EBT 95.4 122.6 75.1 80.4 88.1 9.6%

% of Revenues 1.0% 1.2% 0.5% 0.5% 0.6%

Consolidated net income 68.1 118.0 54.3 80.7 61.6 -23.7%

Tax rate 28.6% 3.8% 27.7% -0.4% 30.1%

Share of minority interest 17.6 21.3 23.1 19.3 13.4 -30.6%

as % of net income 25.8% 18.1% 42.5% 23.9% 21.8%

Share of owners of parent company 50.5 96.7 31.2 61.4 48.2 -21.5%

as % of net income 74.2% 81.9% 57.5% 76.1% 78.2%

Earnings per share (EPS) in EUR 1.48 2.82 0.91 1.78 1.39 -21.9%

* Figures adjusted

Group Financials


Balance Sheet

** Adjusted for the reserve formed since 2012 for actuarial profits and losses

in EUR m 2011 2012 2013* 2014* 2015 ∆14/15 (%)

Total assets 3,922.0 4,460.2 5,199.3 5,652.0 6,036.7 6.8%

Equity 1,045.2 1,078.0 1,115.0 1,050.4 1,075.9 2.4%

Equity ratio 26.6% 24.2% 21.4% 18.6% 17.8%

Equity ratio adjusted** 27.1% 23.8% 22.4% 21.4%

in EUR m 2011 2012 2013* 2014* 2015 ∆14/15 (%)

Non-current assets 1,623.4 1,783.3 2,094.0 2,261.7 2,287.2 1.1%

Current assets 2,039.8 2,444.4 3,061.8 3,371.8 3,739.7 10.9%

Provisions 639.9 784.2 772.5 921.2 913.8 -0.8%

Non-current financial liabilities 570.4 649.2 788.4 1,107.9 1,223.2 10.4%

Current financial liabilities 584.3 897.7 1,140.6 1,175.1 1,321.0 12.4%


* Figures adjusted

Group Financials


Cash Flow Statement

in EUR m 2011 2012 2013* 2014* 2015 ∆14/15 (%)

Consolidated net income 68.1 118.0 54.3 80.7 61.6 -23.7%

Cash flow from operating activities -27.5 150.0 230.3 -90.6 19.0 > 100%

Cash flow from investing activities -222.6 -193.7 84.5 -227.6 -143.5 37.0%

Cash flow from financing activities 273.9 37.4 -297.0 334.4 98.7 -70.5%

Cash & cash equivalents at the start of the period 28.2 87.0 83.2 92.1 108.4 17.7%

Cash & cash equivalents at the end of the period 87.0 83.2 92.1 108.4 84.5 -22.0%


* Figures adjusted

baywa group corporate presentation 2016

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