DGAP-News: BayWa AG / Key word(s): Half Year Results BayWa AG: Internationalisation brings record results in the first six months of 2013 08.08.2013 / 10:30 --------------------------------------------------------------------- BayWa AG: Internationalisation brings record results in the first six months of 2013 'An impressive result - our international growth strategy is taking us farther forward,' commented Klaus Josef Lutz, CEO of BayWa AG when summarising the international trading and services company's results for the first half of 2013: After the first six months, BayWa AG revenues amounted to EUR8.3 billion (previous year: EUR5.1 billion) with an EBIT of EUR157.2 million (previous year: EUR91.1 million). Adjusted for one-off effects, which mainly resulted from the sale of three real estate packages in the spring of 2013, operating EBIT at the end of the first half of the year came to EUR101.0 million. 'BayWa AG achieved its best-ever half-year results - even without the one-off effects,' said Lutz. It was particularly pleasing that the international agricultural and renewable energies businesses made up more than 40% of this excellent result. Significant earnings contributions came from the Agriculture Segment's acquisitions of Cefetra B.V., Turners & Growers Limited and Bohnhorst Agrarhandel GmbH. In light of the exceedingly good performance during the first half of the year and the expected favourable general conditions for business in the Agriculture, Energy and Building Materials Segments, BayWa's CEO anticipates that revenues and earnings can continue to increase year on year for 2013. Agriculture Segment: Shaped by national and international grain and fruit developments as well as catch-up effects in operating resources In the first half of 2013, the Agriculture Segment, which comprises trading in agricultural produce and operating resources as well as the Agricultural Equipment and Fruit business units, generated revenues of EUR5.8 billion (previous year: EUR2.6 billion). EBIT amounted to EUR87.5 million (previous year: EUR68.5 million). Revenues in Agriculture Trade increased to EUR4.9 billion after six months (previous year: EUR1.7 billion). The jump in revenues resulted primarily from the high trading volume from Cefetra. The Netherlands-based globally active services, logistics and agricultural trading company used in particular its access to already-completed grain harvests in the Southern Hemisphere for its successful trading activities. Business from the subsequent collection and storage of the harvest in BayWa's home market was also unexpectedly positive. Accordingly, EBIT rose to EUR59.5 million in the first half of 2013 (previous year: EUR44 million). The catch-up effects in fertilisers and crop protection also proved to be a driving force for the business: Due to the long winter and the rainy spring, more fertiliser than usual was needed as a result of erosion. The wet weather that continued into April and May also meant that there was a risk of pest infestation, which led to greater sales of crop protection. BayWa is also very optimistic as regards its Agricultural Trade business unit in the second half of the year. 'We will further strengthen our trading activities together with our Cefetra and Bohnhorst participations,' emphasised Lutz. BayWa anticipates a sideways move given rising global grain consumption and very tight harvest statements in recent years as well as good to very good harvest expectations in the USA and Europe. Agricultural equipment revenues also rose, amounting to approximately EUR652 million at the end of the first half of 2013 (previous year: EUR633 million) due in part to higher tractor sales figures and a slight rise in services. However, lower margins and investments in the expansion of product areas resulted in a drop in EBIT to EUR9.7 million (previous year: EUR14.0 million). Thanks to a stable order-intake situation, a good income situation with a corresponding willingness to invest as well as an improving services business in the current harvest in particular, BayWa anticipates being able to catch up to 2012's exceptionally good result. BayWa profited from better margins in the domestic fruit business and a good harvest in New Zealand - both in terms of quality and margins. All in all, revenues increased to EUR302.7 million (previous year: EUR202.3 million). EBIT rose by 75% in the first half of the year to EUR18.4 million (previous year: EUR10.5 million). In Germany, BayWa is anticipating a smaller apple harvest on account of the wet spring, although prices are expected to remain stable on par with the previous year. International fruit trading is focusing on expanding the Asian growth markets. Substantial potential is to be found here in Thailand, China and Japan. At approximately 30,000 tonnes, the apple harvest in the USA (Washington) is also expected to be larger than in 2012. Fuels: Business defined by the cold and low heating oil prices At EUR1.7 billion in the first half of 2013, the revenues generated by the Energy Segment, which comprises trading activities in fossil and renewable fuels as well as the Renewable Energies business unit, were almost on par with the previous year. In contrast, EBIT rose to EUR17.7 million in the same period (previous year: EUR15.9 million). This development is mainly due to an increase in heating oil and wood pellets sales; the former was buoyed by falling heating oil prices. BayWa's heating business profited from the long winter and the cool and damp spring. Demand for heating oil and wood pellets rose by 20% to 30%. Contrary to the market trend, diesel and petrol sales also rose. The lubricants business profited from increased growth in the German economy. All in all, trading activities in fossil and renewable fuels and lubricants generated revenues of EUR1.48 billion in the first half of the year (previous year: EUR1.5 billion); EBIT rose to EUR5.1 million in the first six months of the year (previous year: EUR1.3 million). BayWa is anticipating a slowdown in demand for heating oil in the second half of the year due to rising prices and high domestic tank levels. However, this could be offset by intact commercial demand with corresponding lubricants and fuels consumers. Renewable energies: Good project business at BayWa r.e. Business in renewable energies, which is bundled in BayWa r.e. renewable energy, generated revenues of EUR188.7 million in the first half of 2013 (previous year: EUR185.3 million). EBIT amounted to EUR12.6 million in the same period (previous year: EUR14.6 million). 'Our international positioning, rising demand in the USA for electricity generated from renewable energies, and a well-filled project pipeline for wind power plants in the UK and Germany mean that I am very confident that our result at the end of the year will be similar to the excellent result generated in 2012,' explained Klaus Josef Lutz. He also pointed out that approximately 600 employees work at BayWa r.e.; 150 of these jobs were created in the past three years. 'Hardly any other companies in this industry are likely to have created as many jobs,' emphasised Lutz. Building Materials Segment catches up in the second quarter The Building Materials Segment, which comprises building materials trading activities in Germany and Austria, closed the first half of 2013 with revenues of EUR766.4 million (previous year: EUR813 million) and an EBIT of EUR-4.2 million (previous year: EUR4.1 million). The figures for the second quarter show that the segment is making up for the cold-related declines reported in the first quarter: Despite the extremely poor spring weather, which led to considerable delays in the construction industry as a whole and even to building activities being halted in flooded areas, EBIT in the second quarter of 2013 amounted to EUR22.5 million, up slightly year on year. 'What counts now is investing all our time and energy into the coming months. Building activity data is good and the order books are full. We could still make up for the shortfall provided that the weather holds until the winter,' explained Klaus Josef Lutz. Contact: Marion Danneboom, BayWa AG, Head of PR/Corporate Communication, tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 22-36 98, e-mail: [email protected] End of Corporate News --------------------------------------------------------------------- 08.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: BayWa AG Arabellastraße 4 81925 München Germany Phone: 089/ 9222-3691 Fax: 089/ 9222-3698 E-mail: [email protected] Internet: www.baywa.de ISIN: DE0005194062, DE0005194005, WKN: 519406, 519400, Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 224819 08.08.2013