DGAP-News: BayWa AG / Key word(s): Final Results BayWa AG: International expansion makes for new record figures 27.03.2014 / 10:00 --------------------------------------------------------------------- BayWa AG: International expansion makes for new record figures BayWa AG, Munich, has increased its earnings year on year once again in 2013: The international trading and services company recorded revenues of just under EUR16 billion (2012: EUR10.5 billion) and earnings before interest and taxes (EBIT) of almost EUR222 million (2012: EUR186.8 million) for the recently completed financial year 2013. The successful year is also due to be reflected in the dividend: The Board of Management will put forward a proposal to the Annual General Meeting of Shareholders on 17 June 2014 to raise the dividend by EUR0.10 to EUR0.75 per share. According to Chief Executive Officer Klaus Josef Lutz, the financial year 2013 represented a "milestone in over 90 years of history at BayWa". "Over half of our revenues originate from our international business," said Lutz at the presentation of the figures in Munich. "Only through the strategy of growth in our core areas of agriculture and renewable energies are we able to record such success today and propose to raise the dividend further." The companies acquired at the end of 2012, Cefetra B.V. and Bohnhorst Agrarhandel GmbH, have been successfully integrated into BayWa's operating business in just one year, said Lutz. He added that this step will pave the way for the coming years. In 2013, operating EBIT rose to just under EUR196 million (2012: EUR169 million). The full-year inclusion of New Zealand fruit company Turners & Growers Limited in the reporting year, as well as the initial consolidation of Cefetra and Bohnhorst (from the end of May 2013), made a major contribution to this result. BayWa financed the acquisitions primarily through the sale of properties, which brought in roughly EUR290 million last year. The CEO believes that BayWa is on firm footing for 2014: Agricultural trade is showing promising development in the first few months of the year, Lutz said. The same applies to the renewable energies business, including good progress in the realisation and sale of wind power plants in the USA. Given that building materials also made a positive start to the year and BayWa will split from its building materials locations in North Rhine-Westphalia midway through 2014, Lutz assumes that "we are also moving in the right direction in terms of improving our operating figures in this segment". For the current financial year, Lutz announced that further acquisitions are due to be completed and prepared for, above all in the agricultural industry. "We want to increase our international growth," said Lutz. "As we were quick to adapt to globalised markets, we are able to drive forward the expansion and restructuring of BayWa AG in an extremely targeted and risk-aware manner." Agriculture: Revenues doubled through internationalisation The Agriculture Segment was able to generate significant growth in its three business units - Agricultural Trade, Fruit and Agricultural Equipment - both in terms of revenues and EBIT: Revenues climbed to just roughly EUR10.7 billion (2012: EUR5.1 billion). EBIT came in at EUR123.5 million (2012: EUR91.0 million). In Agricultural Trade, revenues and EBIT developed unusually well through the acquisition of Cefetra and Bohnhorst, especially in the case of grain and oilseed: Turnover quintupled in the reporting year from 5.4 million tonnes in 2012 to roughly 25.5 million tonnes. Revenues were able to be more than doubled to roughly EUR8.9 billion (2012: EUR3.4 billion). EBIT rose significantly to EUR80.4 million (2012: EUR54.3 million). The Fruit trading business was also very positive, particularly as a result of good harvest marketing and rising harvest volumes in New Zealand. Consequently, revenues grew to EUR567.7 million (2012: EUR468.3 million). EBIT climbed to EUR21.6 million (2012: EUR17.9 million). "All in all, the three major agricultural acquisitions in the last two years have had an extremely positive effect on BayWa's result," explained Klaus Josef Lutz. Gains were also able to be made in Agricultural Equipment in 2013: Revenues stood at roughly EUR1.3 billion (2012: EUR1.2 billion). EBIT climbed to EUR21.4 million (2012: EUR18.9 million). Agricultural Equipment benefited from the high willingness to invest among farmers and was able to expand its service business even further. Energy: Heating oil sales up in Germany - Renewable projects continue to be very successful The Energy Segment generated revenues of EUR3.5 billion in 2013 (2012: EUR3.7 billion). EBIT rose to EUR45.1 million (2012: EUR43.0 million). Business with conventional energy carriers profited, particularly in Germany, from increased heating oil sales (roughly 4%) due to the cold weather in the first quarter of 2013, although oil prices fell. As a result, revenues were down marginally to EUR3.0 billion (2012: EUR3.2 billion); EBIT remained stable in a shrinking market at EUR10.6 million (2012: EUR10.5 million). Once again, renewable energies business developed positively, primarily as a result of international diversification. Revenues rose to roughly EUR485.9 million (2012: EUR440.8 million); EBIT stood at EUR34.5 million (2012: EUR32.5 million). Project development for wind and solar parks in Europe and in the USA was mostly responsible for the successful development. Finished plants were able to be sold successfully: Wind parks with a capacity of just under 27 megawatts (MW) were sold in the UK alone. In 2013, work also began in France on the largest solar park in company history with an overall capacity of 45.4 MW. While solar module business in Europe and Germany decreased, BayWa recorded gains in the USA. "In Germany, we intend to be one of the main beneficiaries of market consolidation in the solar module business over the next few years," explained Lutz. "We are flexible, product- and brand-neutral and can also offer key services." Building Materials: 2013 shaped by unseasonal weather Extremely unfavourable weather conditions in the first half of 2013 had a major effect on business in the Building Materials Segment. Recovery in the second half of the year was unable to compensate for this trend. Revenues were down slightly year on year at EUR1.70 billion (2012: EUR1.74 billion). EBIT fell to EUR27.0 million (2012: EUR35.4 million). The primary reason for the substantial decline in EBIT is that low-margin transport business increased in the second half of the year, while higher-margin warehouse business was unable to experience the same kind of recovery. "Overall, we are not satisfied with the result in building materials," said Lutz. "Structural problems were exacerbated by unfavourable weather conditions in the first half of 2013." As a result, BayWa is to split from its regionally oriented locations in North Rhine-Westphalia on 1 June 2014 as announced, as these locations have failed to meet expectations. In the building materials trade, BayWa will concentrate on its core regions. "We are confident that we have laid the foundations for sustained improvement in this business unit's operating business from 2015", the CEO said. 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 --------------------------------------------------------------------- 27.03.2014 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: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 259912 27.03.2014