Living the future together

Dear Readers,

Successful companies often set themselves apart by embracing a shared set of values. That is very much the case at BayWa too. We are there for people: BayWa serves basic human needs, providing solutions for food, shelter, warmth and mobility – as it has for nearly 100 years. In 2020, fulfilling this mission was particularly important in helping the world master the tremendous challenges associated with the coronavirus pandemic.

BayWa and its segments at a glance

The Company

Companies have a future if they offer their customers benefits and provide solutions for the challenges to come. BayWa AG thinks and acts with this philosophy in mind, brings fresh momentum to its existing activities and taps into innovative business areas. The company, with its Energy, Agriculture and Building Materials Segments, has evolved into a provider of integrated customer solutions both regionally and internationally – as a leading project management company for renewable energy plants, as a pioneer in digital applications and as a reliable partner for domestic agriculture. This range gives BayWa stability and a wide spectrum of growth potential.

Energy Segment

The Energy Segment pools renewable energies and the trade in conventional energy sources. Under the umbrella of BayWa r.e. renewable energy AG, the Renewable Energies business unit covers the entire project business in the field of wind and solar energy. BayWa r.e. also trades in photovoltaic components and storage technology for installers and develops innovative solutions for the provision of energy. Along with Europe and North America, BayWa r.e. is active in the Asia-Pacific region and in Australia. In the Conventional Energy business unit, BayWa sells heating oil, fuels, lubricants, AdBlue as well as wood pellets and heating solutions, mainly in southern Germany and Austria. BayWa Mobility Solutions GmbH rounds off BayWa’s spectrum with solutions in the field of CO2-optimised mobility: offerings in the areas of electromobility, liquefied natural gas (LNG) and digital mobility. 

CO2-optimised mobility

Germany plans to reduce greenhouse gas emissions by 55% by 2030 and achieve climate neutrality, along with the entire European Union, from 2050 onwards. Every sector of the economy – including mobility – is supposed to contribute to achieving these goals. Businesses and private households need to adapt to new legal conditions. Since its introduction in early 2021, for example, carbon pricing has been making trips to the filling station more expensive for vehicles with combustion engines. By contrast, incentive schemes for electric cars have been making alternative forms of personal mobility more attractive for years now. So how can CO2-optimised mobility make an even bigger impact in people’s private lives and in the business world? BayWa Mobility Solutions GmbH (BMS) is taking on this task and is providing a wide range of solutions for electromobility, liquefied natural gas (LNG) and digital mobility. In the field of electromobility, BMS focuses on advice and planning, as well as the installation, technical operation, repair and maintenance of charging infrastructure. By the end of 2020, some 35,000 public charging stations had been installed. That number is set to rise to just under 400,000 by 2025. BMS is active in this future market. It provides e-mobility solutions for private customers and agriculture, as well as fleet solutions for corporate fleets, for the property sector and for retail businesses. This field still harbours tremendous potential: in late 2020, for example, BMS started installing 250 quick charging stations at 80 locations of the DIY store chain Hellweg in Germany. In addition to its activities geared towards the expansion of charging infrastructure, the product range of the wholly owned BayWa subsidiary also includes filling station and charging cards, which allow users to take advantage of green electricity to charge their electric cars at over 95% of the public charging stations across Germany. BayWa also offers its customers an individual price and discount basis at over 3,000 conventional filling stations, public charging stations and at home. But the development efforts do not stop there: with plug & charge, BMS has joined forces with partners to launch a project that will allow vehicles and charging stations to communicate directly with each other in future – without driver interaction and without a charging card. 

Agriculture Segment

In the Agriculture Segment, BayWa covers the entire value chain from the field to the marketing of products, making it one of Europe’s leading trading companies with a global reach. Its range of services includes international trade and logistics for select agricultural commodities and specialities, as well as the sale of agricultural inputs and feedstuffs, predominantly in Germany and Austria. The Global Produce business unit also makes the Group a global player in fruit and vegetable trading, allowing it to market a wide range of pome fruit, tropical fruits and other high-quality fruit and vegetable products around the world. Machinery for agriculture as well as the municipal sector, along with the construction and maintenance of agricultural buildings and systems, are another core competence of BayWa. The offerings range from the sale of new machinery, maintenance and repairs, to the marketing of used machinery.

Double harvest

How can farmers grow raspberries while generating electricity on the same field? With agrivoltaics (Agri-PV), the solution that brings sustainable agriculture and energy generation together – all while benefiting the cultivation and growth of crops. Installed above the crops, the translucent solar modules reduce the risk of weather-related crop and quality losses. In addition, they are more durable than conventional protection systems and therefore environmentally friendly. By making dual use of the land, Agri-PV also defuses the conflict between producing food and generating energy. For farmers, Agri-PV provides an additional source of energy and income, allowing agriculture even to contribute to the energy transition and climate protection. Agri-PV is already established in China, Japan and South Korea but is still a new concept in Europe. However, BayWa r.e. is a leader in Europe and completed one of the largest Agri-PV plants in Babberich in the Netherlands in 2020. There, 10,250 semi-transparent solar modules developed in-house cover a 3.2-hectare raspberry field, capable of supplying some 1,250 households with green electricity. The solar modules protect the raspberries from hail, heavy rain and extreme sun. The next four projects with different kinds of berries are already being planned. The dual use of land for growing food and generating energy has tremendous potential, especially for permanent fruit and wine crops. In addition to helping to protect crops, Agri-PV is associated with another positive aspect: the green electricity generated on-site could be used to power tractors, combine harvesters and other agricultural vehicles, one day replacing carbon-intensive diesel fuel. Here too, BayWa and the agricultural machinery manufacturer Fendt are delivering the first practical examples. At an apple orchard that has been covered with solar modules, the generated electricity is fed into the battery of a Fendt electric tractor – something that offers a world of new prospects, especially for remote fields without a connection to the power grid. 

Building Materials Segment

The Building Materials Segment covers the entire range of products and solutions for building materials – from civil engineering, structural engineering, construction, renovations, modernisation, gardening and landscaping, to solution packages for energy efficiency and healthy living. This range of products is aimed at construction companies, municipalities, trades and commercial enterprises, as well as renovators and private individuals building their own homes. In addition to this, BayWa also provides customers with a wide range of specialisations and a variety of services, as well as expertise and support when it comes to innovative topics such as healthy building, energy efficiency and BIM (building information modeling). Digital offerings are increasingly bolstering traditional business by providing fresh momentum and additional sales channels. The key regions for the Building Materials Segment are southern Germany and Austria, where BayWa is one of the leading providers in the building materials. 

Solutions from the Building Materials Segment: This is urban living

Residential spaces, working spaces and an innovative energy concept, all in a single neighbourhood: in Schrobenhausen, a construction project is under way to make that very vision a reality while providing an example of a future-ready approach to urban living. The construction project is being realised by Plapperer Projekt GmbH, a joint venture between the Schrobenhausen- based property developer Michael Plapperer and BayWa AG. Both project partners have big plans with their Multi Park, a residential and office park measuring 10,000 square metres and located not far from Schrobenhausen’s old town. Thanks to an innovative, integrated energy concept that uses renewable energies to provide the six building complexes with cooling and heat, as well as electricity for household use and electromobility, the developers have put together a local climate package – with concentrated living quarters, working quarters and infrastructure for less traffic, plus cooling, heat, electricity and e-mobility powered by renewable energies for less CO2. At Multi Park, the heat is provided by a heating system fuelled by wood pellets. A contracting agreement with BayWa Energie Dienstleistungs GmbH (EDL) covers the installation of systems and the provision of local homes and businesses with renewable fuel while also ensuring economical operation through maintenance and system optimisation. The roofs of the six buildings will feature a photovoltaic (PV) system, allowing the residents and users of the properties to source their household electricity or energy for electromobility through a landlord-to-tenant electricity model. The parking spaces in the underground car park have been equipped accordingly. Under the PV systems is an extensive network of green roofs, which have been demonstrated to positively affect the microclimate by binding particulates and converting CO2 while also lowering the temperature of ambient air and the buildings themselves through evaporation.

  • Together for more success

    BayWa uses its project business, which is pooled in the Group company BayWa Bau Project GmbH, to leverage innovations in the field of construction. The principle is not to compete with regional customers from the construction industry but to instead work together with them as business partners to get new ideas off the ground and increase regional value creation. Multi Park in Schrobenhausen is among those ideas. Another flagship project is under way in Burgkirchen an der Alz, combining intergenerational living (age-appropriate senior housing plus service and care offerings, as well as conventional residential units) with energy efficiency (KfW 55) and sustainability (own electricity generation through PV for household electricity and e-mobility, green roofs, climatic ceilings, pellet heating). 

  • Borrow, don’t buy

    The variety of special equipment and machinery in the construction sector is tremendous. In many cases, buying them only pays off to a certain extent. Renting them is often the better alternative. That is why BayWa is further expanding its rental service for construction equipment and machinery through its subsidiary BayWa Rent GmbH. The rental equipment available from BayWa Rent gives customers access to an extensive range of tools and machines – professionally maintained and technically up to date. The service is geared towards professional customers in earthworks and civil engineering, gardening and landscaping, building maintenance and local authorities, as well as private developers who want to perform building work with the greatest possible degree of professionalism. The product range can be seen and requested online at www.baywa-rent.de. BayWa Rent currently operates four independent rental stations across Bavaria and works with partner businesses to ensure the widest possible regional coverage. Further rental parks are in planning. 

  • A passion for building

    Paulina Irsigler studies architecture while also completing training as a bricklayer. The daughter of a building contractor, she has a passion for building and is proof positive that construction is also women’s work. For her commitment, BayWa’s Building Materials business unit has recognised the young woman as its first female Baugefühlheld (building feeling hero). Irsigler is now part of the community at www.baugefuehlhelden.de, which is part of BayWa’s efforts to strengthen the regional skilled crafts and trades. The website regularly profiles Baugefühlhelden (building feeling heroes) to honour extraordinary achievements in the construction industry and show the public the outstanding capabilities of today’s building sector. 

Innovation & Digitalisation

In the field of Innovation & Digitalisation, BayWa is leveraging the potential offered through increased digitalisation, thereby also underscoring the strategic importance of innovation for the entire company. This sector pools digital activities, along with the further development of innovative approaches. The focus is currently on projects in Digital Farming and eBusiness. Digital Farming offers farmers new opportunities to optimise operating processes, thereby allowing them to work more cost-efficiently and sustainably. Through the subsidiary FarmFacts, BayWa provides a farm management system that offers farmers the advantages of digital technology, regardless of farm type or size. Another approach is the use of satellite data for agriculture. Here, the subsidiary VISTA GmbH has already launched a variety of solutions that have a positive impact on the use of resources and water, as well as on harvest yields. In eBusiness, the focus is on forging ties between digital service offerings, such as online purchasing, and bricks-and-mortar retailers, as well as further advancing and optimising advice apps. 

Innovation & Digitalisation: Digital marketplace opened

In the world of agriculture, digitalisation is making ever faster and more significant inroads. With its wholly-owned subsidiary FarmFacts GmbH, BayWa has been a major driving force behind this development for many years. Through its farm management platform NEXT Farming, FarmFacts provides integrated digital solutions for all aspects of agricultural operations. The most recent product from FarmFacts is a digital marketplace. Since the summer of 2020, NEXT Marketplace has been bringing farmers and regional agricultural input dealers together in an open trading platform. The result is a new dimension for farmers that have so far used the NEXT Farming software to plan their day-to-day operating processes, documentation or fertilizer requirements calculation. Having to request offers the old-fashioned way – by phone, e-mail or fax – is now a thing of the past, making room for innovative processes with added value. Combining the digital marketplace with the NEXT Farming system allows users to link orders of fertilizer, seed and crop protection products to field databases, obtain offers from different providers and conclude purchase and delivery agreements. With just a single electronic enquiry, farmers automatically reach all participating dealers in the region. The NEXT Farming software makes it easy to gain a clear overview of incoming offers, permitting a transparent comparison of offers and saving both time and effort. From the farmer’s perspective, there are also practical advantages that speak for the NEXT Farming marketplace solution, such as ordering in a familiar software environment with a single login and without having to manage multiple accounts. Right now, the NEXT Marketplace is available to customers in five German states – Saxony, Thuringia, Saxony-Anhalt, Brandenburg and Mecklenburg-West Pomerania – for trade in fertilizer and seed. Crop protection products were added to the platform in early 2021. The range on offer is slated for expansion in the future to include further products and enhanced regional availability. 

Sustainability

Halting climate change, feeding a growing global population, globally linked supply chains and the consumption of resources – those are the key challenges facing the world of politics and the business sector today. As an internationally operating business, BayWa is no exception in having to tackle these changes and live up to its responsibility to balance international growth with the interests of future generations. Based on its core values of innovation, solidity and trust, BayWa has aligned its sustainability strategy towards four fields of action: market, environment and climate, employees, and quality of life. The company’s sustainability activities are geared towards several overarching goals: sustainable business practices, conserving resources, working in partnership, and creating quality of life. 

Digital nutrition education

BayWa Foundation

In the digital classroom, the BayWa Foundation provides learning materials for schoolchildren on the topics of healthy nutrition. Children can find online learning games, videos with gardening tips and a wide range of practical knowledge at baywastiftung.de/en. The free Essen+Wissen (eating+knowledge) app also offers mobile access to nutritionrelated knowledge, gardening and movement. More than €17 billion are spent on treating diet-related illnesses in Germany every year. Through its nutrition education programme, the foundation is taking steps to counteract this trend. 

Consolidated Financial Statements 2020

The BayWa Group developed positively overall in 2020, despite the restrictions in many aspects of life and business as a result of the coronavirus pandemic. In certain business units, the corporate goals for the reporting year were exceeded by a substantial margin.