Baywa Ag · XETR:BYW

Baywa — Investor Day (September 2010)

29 slides from Baywa's investor day presentation, Sep 14, 2010

  1. Slide 1: Capital Market Day 2010 Financials

    Capital Market Day 2010 Financials Andreas Helber, Senior Vice President Finance Rain, 13-14 September 2010

  2. Slide 2: Agenda

    Agenda Revenues and EBIT in 1H/2010 against previous year Revenues [EUR m] +1.7% ƒ 1H 2010 revenues at EUR 3,778 m (∆ 10/09: EUR + 62 m / +1.7%) ƒ Agriculture segment matches previous year‘s level 1 3,716 3,778 ƒ Building Materials and Energy segments achieve Current development of BayWa Group signi

  3. Slide 3: Current development of BayWa Group

    1 Current development of BayWa Group BayWa Financials Andreas Helber 3

  4. Slide 4: Revenues and EBIT in 1H/2010 against previous year

    Revenues and EBIT in 1H/2010 against previous year Revenues [EUR m] +1.7% ƒ 1H 2010 revenues at EUR 3,778 m (∆ 10/09: EUR +62 m / +1.7%) ƒ Agriculture segment matches previous year's level 3,716 3,778 ƒ B Building ildi materials t i l and dEEnergy segments t achieve hi significant growth ƒ Disposal

  5. Slide 5: Year-on-year comparison of revenues and EBIT

    Year-on-year comparison of revenues and EBIT Revenues [EUR m] 10,000 8,795 8,000 7,300 7,227 7,260 ƒ 1HJ 2010 6,537 Ø 7424 revenues 2nd 6,000 highest with 4,381 3 778 3,778 4,000 3,063 3 361 3,361 3 415 3,415 3 716 3,716 regard to long long- Ø 3619 term average 2,000 (6 years) 0 2005 2006 2007 2008

  6. Slide 6: Revenues and EBIT in 1H/2010 against previous year per division

    Revenues and EBIT in 1H/2010 against previous year per division Revenues [EUR m] Agricultural trade/Agricultural Building materials/DIY Energy Others technology -3.1% +6.2% +23.2% -62.1% 1,799 1,743 801 851 1,099 224 Renewable 892 246 259 149 Agri. Equip. Build. Mat. Energies 0 1,382 1,335 85 Agri.

  7. Slide 7: KPIs for BayWa Group

    2 KPIs for BayWa Group BayWa Financials Andreas Helber 7

  8. Slide 8: Key leverage ratios

    Key leverage ratios Leverage ratios [EUR m]; [%] Leverage 6.05 4.72 5.61 ƒ Fluctuation in leverage during 900 110 the year mirrors seasonal business activity – annual 100 800 report values show peak 90 700 ƒ Net Debt/Equity ratio moving 80 within corridor between 600 70 ≈ 50-100% – strong capitalisa

  9. Slide 9: Key investment ratios

    Key investment ratios Desinvestments, gross/net investments, depreciation [EUR m] Investments 0.61 0.18 0.20 0.23 ƒ Investments shown at book value – excl. changes in consolidated group (for acquisitions see 81.0 next page) 84.5 82.2 83.9 101.4 ƒ Net investments at 125.8 95.1 EUR 16.9 m in 2009 – 10

  10. Slide 10: Corporate disposals and acquisitions

    Corporate disposals and acquisitions Disposals and acquisitions [EUR m] M&A activity 2006 2007 2008 2009 15.0 36.6 81.5 ƒ Strong growth in acquisition deal volume to EUR 81.5 81 5 m in 2009 – mainly driven by expansion into renewable energy market ƒ No meaningful company disposals in 2008 and -12.0

  11. Slide 11: Taxes and consolidated net income

    Taxes and consolidated net income Taxes [EUR m] Tax rate 17.8% 20.6% 25.9% 20.9% Taxes 12.40 20.02 1.34 18.68 27.67 0.89 26.78 14.98 0.70 15.68 ƒ Decrease in income tax lowers effective tax rate in 9.50 2009 to 20 20.9% 9% 2.90 ƒ Low impact of deferred taxes in 2007, 2008, 2009 Actual Deferred Incom

  12. Slide 12: Economic profit for BayWa divisions, 2009

    3 Economic profit for BayWa divisions, 2009 BayWa Financials Andreas Helber 12

  13. Slide 13: CAPM figures and WACC calculation for divisions

    CAPM figures and WACC calculation for divisions Cost of equity 8 yyears Agr. Agr. tech- Building DIY Energy Risk-free rate1) 3.17% 3 % trade nology materials Market return (MDAX) 15.84% Risk premium 12.67% 12.72% Beta 0.75 OPERATING PROFIT q y market value [[EUR m]] Equity Share price [EUR] 21.39 (a

  14. Slide 14: Backup: Method for calculating economic profit and WACC

    Backup: Method for calculating economic profit and WACC EBIT Fixed assets Cost of equity – Taxes + Net working capital Risk-free – Financial assets rate ± Adjustments (e.g. deferred Risk + x – taxes) premium Market return Beta Invested = NOPAT = capital + / Cost of debt Interest-bearing liabilities

  15. Slide 15: Backup: Beta calculation

    Backup: Beta calculation BayWa share MDAX BayWa MDAX BayWa share price [EUR], [EUR] Jan 1 1, 05 to Aug 28 28, 10 Date No No. price [EUR] index return [%] return [%] 50 Jan 01, 2005 1 13.43 4,256 … … … … … … 40 Jan 02 02, 2009 366 26 80 26.80 5 756 5,756 +13 2% +13.2% +7 8% +7,8% 30 Jan 09, 2009 367

  16. Slide 16: KPIs per BayWa division

    KPIs per BayWa division 2009 KPIs Agricultural Agricultural Building DIY Energy GROUP1 [EUR m] trade technology materials Sales 2,443.2 , 826.6 1,327.0 , 449.1 1,825.0 , 7,260.2 , EBIT 36.0 15.2 12.4 6.2 18.3 115.4 EBT 19.0 6.1 5.0 1.2 16.9 75.1 NOPAT 27.5 11.4 10.0 6.4 14.7 61.7 Invested 712.5 229.

  17. Slide 17: Backup: Value contribution portfolio 2008-2009

    Backup: Value contribution portfolio 2008-2009 CAGR sales 2006-2009 [%] 30 25 TARGET: 20 Value-creating- 15 growth 10 Agricultural trade 5 Agricultural g technology gy 0 -5 Building materials -10 DIY -15 -20 20 Energy -25 Sales volume -30 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 36 37 < WACC > WACC

  18. Slide 18: Invested capital

    Invested capital Agricultural Agr. tech Agr tech- Building Building- DIY Energy Total1)) trade nology materials Invested capital at Dec 31, 2008 [EUR m] Book value of fixed assets 330.3 93.2 257.9 166.1 48.7 1,349.3 – Financial assets -42.5 -5.4 -19.7 -4.6 -10.0 -350.5 – Assets earmarked for sale 13

  19. Slide 19: Backup: Net working capital per division

    Backup: Net working capital per division Net working capital at Dec 31, 2009 [EUR m] Agr. trade Agr. tech- Building- DIY Energy Renewable Consumer Others Total nology materials Energy Goods Inventories 411 9 411,9 182 6 182,6 105 7 105,7 104 8 104,8 23 9 23,9 22 2 22,2 110 3 110,3 10 1,0 962 6 962,6

  20. Slide 20: Backup: Division-specific cost of capital (approach)

    Backup: Division-specific cost of capital (approach) APPROACH Required returns 1 1. Using comparable KPIs for operating income on AG and group level for a minimum period of 8 years and consolidating for individual divisions 2. Calculating the earnings volatility of the individual divisions as each d

  21. Slide 21: Backup: Division-specific cost of capital (data)

    Backup: Division-specific cost of capital (data) KPI Agricultural Agr. tech- Building DIY Energy Group trade nology materials Variation 44.56% 284.32% 95.70% 151.75% 31.51% 47.14% ffi i t coefficient Risk factor 0.75 1.15 0.84 0.93 0.73 0.75 WACC 6.89% 8.87% 7.31% 7.77% 6.78% 6.91% Identifying the d

  22. Slide 22: Backup: BayWa share and capital market data

    Backup BayWa share and capital market data BayWa Financials Andreas Helber 22

  23. Slide 23: Share price, market capitalization and dividends

    Share price, market capitalization and dividends [EUR] ['000] [EUR m] [EUR m] 50,0 , 3.000 1.800 16 Peakk price P i O Octt 19, 2007: 46.3 13.60 13,58 45,0 1.600 14 BayWa share 2.500 40,0 1.400 price 12 35,0 Dividends paid 10.13 R t Return 2 000 2.000 1 200 1.200 9 43 9.43 8.74 10.83 10 30,0 Closing

  24. Slide 24: Benchmarks, beta and volatility

    Benchmarks, beta and volatility [%] [%] 800% 60% 1,00 700% 0,90 50% 600% 0,80 Return BayWa y 0,70 500% 40% Return DAX 0,60 400% Return MDAX 30% 0,50 300% 0,40 200% 20% 0,30 Volatility over 260 days (%) 100% 0,20 10% BayWa-DAX beta 0% BayWa-MDAX beta 0,10 -100% 0% 0,00 2002 2003 2004 2005 2006 2007 2

  25. Slide 25: KPIs relevant for capital market

    KPIs relevant for capital market [EUR] [%] 8 4,5% 30 1,8 , Earnings per share Price-earnings ratio 7 4,0% Price-cashflow ratio 1,6 Cashflow per share 25 Dividend yield Price-book value ratio 3,5% 1,4 6 3 0% 3,0% 20 12 1,2 5 2,5% 1,0 4 15 2,0% 0,8 3 1,5% 10 0,6 2 1,0% 0,4 5 1 0,5% 0,2 0 0,0% 0 0,0 20

  26. Slide 26: BayWa AG ownership and further information

    BayWa AG ownership and further information BayWa AG ownership, as per 30 June, 2010 [%] Further information on BayWa stock and paid-in capital June 2010 Raiffeisen Agrar Stock exchanges Frankfurt, Munich, Xetra Invest GmbH Free Float Stock mkt. segm. Official market / prime standard 25 12% 25.12% St

  27. Slide 27: Disclaimer

    Disclaimer The information in this presentation is partly made up of forward-looking statements which are based on assumptions and are subject to unforeseeable risks. In as much as the assumptions on the successful integration of acquisitions and on the internal growth of the company should prove to

  28. Slide 28: Contact

    Contact BayWa AG Investor Relations Josko Radeljic j Arabellastr. 4 D-81925 München Phone: 0049 (0)89 92 22 - 38 87 Fax: 0049 (0)89 92 12 - 38 87 e mail: [email protected] e-mail: investorrelations@baywa de BayWa Financials Andreas Helber 28

  29. Slide 29: Thank you

    2010 Thank you for your attention! BayWa Financials Andreas Helber 29

BayWa — Investor Day (September 2010) on 6ix