Contents 02 Key Data at a Glance 03 The Board of Management 04 The Company 06 The Segments 10 We empower what matters 13 Our Growth Fields 14 Renewable Energies Segment 16 Cefetra Group Segment 18 Global Produce Segment 20 BayWa on the Capital Market 24 Overview of the Financial Year 2021 26 Consolidated Balance Sheet as at 31 December 2021 27 Consolidated Income Statement 2021 28 Imprint
0 1 Dear Readers, The world in which we live has changed in recent years due to the lengthy coronavirus pandemic. Yet all of that is being overshadowed by the dramatic developments in Ukraine and the catastrophic impact of a war in violation of international law. Our perspective on what is impor- tant and what matters – and what we can do as a com- pany – has become clearer. The reliable satisfaction of basic human needs on a global and regional scale has been brought even more squarely into focus. Climate protection, the preservation of natural resources and a responsible approach to life and doing business are among the top priorities. Digital- isation and innovation are also making rapid advance- ments and are already having a direct impact on every- one’s lives. BayWa is making an active contribution to mastering these challenges. It is taking on responsibility beyond the business world, striving to resolutely seize the op- portunities resulting from the many far-reaching chang- es and turn them into something that its customers, employees, shareholders and every other stakeholder in the company can use. We empower what matters. BayWa achieved outstanding revenue and earnings results in 2021 that were supported by all of its busi- ness units: energy, agriculture and building materials. Regardless of favourable market conditions and the regulatory environment, this success is the product of a clear strategic path that BayWa has been pursuing for more than ten years. It is a path of internationalisation, of expanding and deepening the range of services, of digitalising its own processes as well as with regard to the product portfolio and sales channels. It is the bold decision to transition from being a company that primar- ily focuses on trade to one that is a successful project manager and provider of solutions, thereby safeguard- ing its future. We call our corporate strategy for 2025 “Sustainable Solutions for Life”. Our goal is to increase our operating earnings to between 400 million and 450 million euros. Over 70 percent of that amount will be attributable to multinational business, and over 50 percent will stem Prof. Klaus Josef Lutz, Chief Executive Officer of BayWa AG from sustainable business activities. At the same time, we plan to reduce our greenhouse gas emissions by 22 percent. In this company brochure, we will offer you an insight into the diversity of the BayWa Group while showing you what we stand for, what we have achieved and where we see our strategic growth fields. I wish you an enjoyable read. Best regards, Prof. Klaus Josef Lutz
0 2 Key Data at a Glance BayWa Group In € million 2017 2018 2019 2020 1 2021 Revenues 2 Renewable Energies Segment Energy Segment Cefetra Group Segment Global Produce Segment Agri Trade & Service Segment Agricultural Equipment Segment Building Materials Segment EBITDA EBIT 2 Renewable Energies Segment Energy Segment Cefetra Group Segment Global Produce Segment Agri Trade & Service Segment Agricultural Equipment Segment Building Materials Segment EBT Consolidated net result for the year Profit share of minority interest Profit share of shareholders of the parent company Total assets Non-current assets Current assets 3 Non-current liabilities Current liabilities 4 Equity Equity ratio in % Issued share capital (as at 31/12) in € million Number of shares (as at 31/12) in million shares Dividend per share in € 16,055.1 16,625.7 17,059.0 16,464.7 19,839.1 1,366.7 2,228.1 5,817.8 805.6 2,812.9 1,400.3 1,606.1 1,530.2 3,968.4 5,286.8 807.9 3,298.8 1,622.4 1,617.5 1,975.3 2,499.0 4,875.8 843.9 3,454.4 1,683.4 1,702.8 2,209.7 1,745.2 4,205.6 938.5 3,574.3 1,869.8 1,899.0 3,560.0 2,128.2 4,996.3 960.7 4,178.7 1,909.0 2,084.2 318.4 315.3 403.0 464.8 552.8 171.3 172.4 66.6 18.5 7.0 29.4 25.7 19.9 30.1 102.4 67.2 27.9 39.3 6,488.0 2,396.9 4,091.1 2,065.7 2,986.8 1,435.5 22.1 89.6 35.0 0.90 72.5 96.0 31.1 27.2 5.2 36.6 31.1 92.6 54.9 22.6 32.3 7,511.5 2,476.9 5,034.6 2,074.7 4,047.7 1,389.1 18.5 89.9 35.1 0.90 188.4 101.0 26.4 19.1 36.9 7.8 32.8 32.1 79.2 65.1 24.4 40.7 8,781.9 3,090.5 5,691.4 3,041.0 4,487.5 1,253.4 14.3 90.3 35.3 0.95 211.6 110.9 31.8 21.6 41.8 – 14.3 54.4 46.9 107.6 59.5 23.6 35.9 8,950.0 3,538.9 5,411.1 2,930.7 4,865.7 1,153.6 12.9 90.6 35.3 1.00 266.6 135.0 17.4 38.8 42.6 12.3 48.6 73.2 160.6 128.8 58.2 70.7 11,771.4 3,771.3 8,000.1 4,631.4 5,323.9 1,816.1 15.4 91.2 35.4 1.05 5 Number of employees (as at 31/12) 17,323 17,864 19,193 21,207 21,468 1 The previous year’s figures have been adjusted in accordance with IAS 8.42. Further details are available in Note A.7 of the Notes to the Consolidated Financial Statements for 2021. 2 Comprises all operating Segments, the Innovation & Digitalisation and Other Activities Segments as well as the transition 3 Including non-current assets held for sale/disposal groups 4 Including liabilities from disposal groups 5 Subject to approval by the Annual General Meeting
0 3 The Board of Management “ BayWa provides sustain- able solutions to reliably satisfy fundamental requirements, such as the need for food, energy and shelter, for today and future generations. That is what drives us. Prof. Klaus Josef Lutz Chief Executive Officer since 01/07/2008 Responsible for the operating segments Renewable Energies, Cefetra Group and Global Pro- duce Andreas Helber Chief Financial Officer since 15/11/2010 Please refer to Note E.7 in the Consolidated Financial Statements 2021 to find further information on Board of Management responsibilities and mandates. Reinhard Wolf since 01/09/2013 Responsible for RWA Raiffeisen Ware Austria Aktiengesellschaft, Korneuburg, Austria Marcus Pöllinger since 01/11/2018 Responsible for the operating segments Agri Trade & Service, Agricultural Equipment, Energy and Building Materials
0 4 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 m omen- tum to its existing activities and taps into innovative business areas. The Company
0 5 Roughly countries worldwide The company, with its energy, agriculture and building materials business units, 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 the field of digital applications and as a reliable partner for domestic agriculture. This range gives BayWa stability and opens up a wide spectrum of growth potential. BayWa pursues solid and profitable growth while keeping an eye on its responsibility for the environment and society. Sustainability and climate protection are key pillars of its strategy. Through its Group-wide climate strategy and the aim of being climate neutral from 2030 onwards, BayWa is making an active contribution to limiting climate change. An employer, BayWa also acknowledges its responsibility: Some 21.500 people of various nationalities work on behalf of BayWa in roughly 50 countries worldwide. Their origins, gender identities, ages, religions, personal experiences and individual skills differ, as do their ideas and ways of thinking. BayWa sees this very diver- sity as a tremendous opportunity for the further development of the entire Group. Refer to the inside pages for more informa- tion on each operating segment.
Installed output of roughly 5 GW fed into the grid since 2013 Renewable energy plant manage- ment with a total output of over GW Renewable Energies Segment BayWa AG pools the entire project business for wind and solar energy in BayWa r.e. AG. BayWa r.e. also as- sumes technical and commercial man- agement of renewable energy plants and is building up its own generation portfolio as an independent power pro- ducer (IPP). In addition, the segment en compasses trading in photovoltaic components and storage technology as well as the development of innova- tive energy solutions and the marketing of electricity, gas and heat generated from renewable sources. 758.2 k tonnes of wood pellets sold Energy Segment In the Energy Segment, BayWa primar- ily sells heating oils, fuels, lubricants, AdBlue and wood pellets, mainly in southern Germany and Austria. BayWa Mobility Solutions GmbH (BMS) is in- creasingly coming to the fore with so lutions for CO2-optimised mobility. BMS’s business activities include ser- vices in the fields of electromobility, liquefied natural gas (LNG) and digital mobility. Significant events in 2021 Capital increase of € 530 million by the Swiss investor Energy Infrastructure Partners (EIP) and conversion into BayWa r.e. AG. Commissioning of the largest floating PV plants outside Asia (Sellingen: 41.1 MW; Uivermeertjes: 29.8 MW, both in the Neth- erlands). Construction of first Agri-PV parks in Germany and in the Netherlands. Development of offshore wind energy as a new growth area. Acceptance of charging cards in over of the public charging infrastructure in Germany Significant events in 2021 BayWa AG develops into one of the largest traders of wood pellets in Germany. Expansion of cross-acceptance of filling station cards and further alliances for electromobility. Establishment of BayWa Power Liquids GmbH to pool activities for heavy goods transport; expansion of the LNG filling station network; introduction of bio-LNG. Green hydrogen for public transport in Bavaria through stake in Hy2B Wasserstoff GmbH. € 3.6 bn in revenues € 135.0 m in earnings before interest and tax (EBIT) 3,000 employees (as at 31/12/2021) € 2.1 bn in revenues € 17.4 m in earnings before interest and tax (EBIT) 1,348 employees (as at 31/12/2021) i t i n u s s e n s u b y g r e n E i t i n u s s e n s u b y g r e n E
i t i n u s s e n s u b e r u t l u c i r g A i t i n u s s e n s u b e r u t l u c i r g A Global Produce Segment Thanks to its Global Produce Segment, BayWa is a leading global player in fruit and vegetable trading. The company markets a wide range of pome fruit, exotic fruits and other high-quality fruit and vegetable prod- ucts through BayWa Global Produce and its subsidiaries. With a strong presence in the northern and southern hemispheres, including the German fruit business and T&G Global in New Zealand, the segment provides its customers with fresh goods from around the globe throughout the year. € 1.0 bn in revenues € 42.6 m in earnings before interest and tax (EBIT) 3,700 employees (as at 31/12/2021) Cefetra Group Segment Cefetra Group acts as a supply chain man- ager for international trading with grain, oilseed and specialities – from purchasing and logistics to distribution. When it comes to the procurement and marketing of agri- cultural products, it possesses a global trading network as well as inland and deep water ports. Using its solid basis as a sup- plier of feed ingredients in the mixed feed sector, Cefetra Group continues to develop as a trader of high-quality ingredients and constituents for the food and feedstuff in- dustry. € 5.0 bn in revenues € 38.8 m in earnings before interest and tax (EBIT) 536 employees (as at 31/12/2021) Significant events in 2021 BayWa AG pools its fresh products business in the wholly owned subsidiary BayWa Global Produce GmbH, which has become a separate brand. T&G Global Limited establishes VentureFruit, a new company specialising in variety development and management. New Softripe® chambers for precision ripening of exotic fruit varieties for trade brought into operation at the Maasdijk location, Netherlands. ENVY™ brand apple: Expansion of cultivation area in southern Germany and cultivation rights granted for around 200 hectares in New Zealand and the US. Trade in more than fruit and vegetable products 107.0 k tonnes tropical fruit sales volume 289.6 k tonnes dessert pome fruit sales volume 22 m tonnes of traded volume Significant events in 2021 Excellent business results, especially in Poland, Italy and at the Royal Ingredients subsidiary in the Netherlands. Consistent implementation of the “Road to Ingre- dients” specialities strategy. Establishment of a new trading centre in Dubai for specialities from Africa (such as nuts and legumes). Entry into the international milk and dairy prod- ucts market through the establishment of Cefetra Dairy B.V. 46% grain 35% specialities and related products 19% soya products Breakdown of the traded volume
Agricultural Equipment Segment The Agricultural Equipment Segment is focused on cross-vendor sales of ma- chinery, equipment and systems for all areas of agriculture. Other customer groups include those in forestry, local government and industry. A workshop network with 278 locations and 780 mo- bile service vehicles provides mainte- nance and repair services. BayWa also sells used machinery via its locations. The Agricultural Equipment Segment is also a driving force behind digitalisation, developing online platforms and digital farming solutions right up to robotics. Building Materials Segment BayWa is one of the leading companies in the building materials trade, with 127 locations in southern and eastern Ger- many as well as 28 locations in Austria. Through its extensive network of loca- tions and warehouses, BayWa also op- erates the largest building materials warehouse in southern Germany. Cus- tomers include small and medium-sized construction companies, trades and commercial enterprises, as well as pri- vate developers and homeowners. Digital resources expand the range of services and boost sales potential. BayWa stands out from the competition by focusing on speciality ranges and future-oriented topics, such as energy efficiency and healthy building and living. i t i n u s s e n s u b e r u t l u c i r g A € 4.2 bn in revenues € 12.3 m in earnings before interest and tax (EBIT) 3,379 employees (as at 31/12/2021) i t i n u s s e n s u b e r u t l u c i r g A Agri Trade & Service Segment The Agri Trade & Service Segment col- lects and markets the harvest from farms, supplies farmers with agricultur- al inputs such as seed, fertilizers, crop protection and feedstuff, and provides them with comprehensive service. The segment maintains a network of high- performance locations, particularly in southern and eastern Germany, with significant transport, processing and storage capacities. BayWa is continually expanding its range of products and services for organic farming and the marketing structures for organically grown products. Significant events in 2021 Restructuring of the agribusiness in Germany; modernisation of locations and warehouses. Expansion of the Baltic Sea port of Mukran on the island of Rügen; connection to block train logistics. Investment of € 3.7 million in modern port agri- cultural site in Obernburg-Elsenfeld, Franconia, initiated with a ground-breaking ceremony. Range of horse feed products expanded to include oat-free supplementary feed made from wholegrain cereals and herbs. t i n u s s e n s u b s l a i i r e t a m g n d i l i u B 2.3 m tonnes fertilizer sales volume 2.4 m tonnes feedstuff sales volume agricultural sites
€ 1.9 bn in revenues € 48.6 m in earnings before interest and tax (EBIT) 3,775 employees (as at 31/12/2021) € 2.1 bn in revenues € 73.2 m in earnings before interest and tax (EBIT) 4,512 employees (as at 31/12/2021) 155 sites Significant events in 2021 Range of agricultural equipment expanded to include heavy-goods vehicles for lumber. Range of agricultural construction services ex- panded to include slurry separators. DINO and OZ agricultural robots in practical use: First DINO agricultural robot handed over to the Landesamt für Umwelt, Landwirtschaft und Geo- logie (state office for the environment, agriculture and geology). Investment of € 8.1 million in the construction of a new technical service centre that includes agricul- tural buildings, a filling station with a transship- ment facility and an e-charging station. 4,973 Number of tractors sold – new 2,119 Number of tractors sold – used Significant events in 2021 Reliable supply of goods to customers despite general shortage of building materials thanks to strategic supplier relationships, intelligent pro- curement management and the linking of regional warehouses. Renovation and construction of six sites. BayWa Bau Projekt GmbH joins forces with region- al business partners to realise a construction volume of around € 300 million. Stake in Tjiko GmbH (industrial prefabrication of bathroom modules made from wood) increased to 46%. Funding service enjoys success: Application for a subsidy-eligible sum of around € 19 million on the behalf of customers. technicians for installation service of building components Surface area of 1,574 k m2
1 0 We empower what matters What BayWa stands for For nearly 100 years, BayWa has stood for solidity, trust and innovation. It serves basic human needs for food, ener- gy, warmth, mobility and shelter. As a lead- ing international provider of projects and solutions, BayWa has a broad business portfolio that it gears flexibly to the needs of customers and markets. Economic, eco- logical and social sustainability are among the company’s key driving forces. BayWa gives its employees the freedom to explore their potential and values the benefits of inclusion and diversity. That diversity plays a key role in actively seizing the opportuni- ties which lie in accelerated change, new trends and innovations.
1 1 Innovation as a driver of growth BayWa is working to advance innovation both inside and outside the company. To name just a few examples, it works with researchers who are looking into climate resilience and food security and makes regu- lar investments in new, promising start-ups. In the field of energy, it is leading the charge on floating solar parks (floating PV) and the dual use of agricultural land (Agri-PV), as well as the generation of green hydrogen through the joint venture Hy2B. Examples from the agriculture business unit include satellite-supported site-specific fertilization and harvest forecasts, agricultural robots in vegetable farming and new, natural pack- aging solutions for fruit and vegetables. Through BayWa New Protein Solutions, the Agri Trade & Service Segment is already active in the rapidly growing market for veg- etarian and vegan products, offering raw material supply solutions for alternative meat, dairy and speciality products – with a focus on regional cultivation, sustainable farming and the needs of food customers. And in the Building Materials Segment, the focus is on digital connectivity with custom- ers and industrial pre-fabrication, among other issues. The ideas of today will generate the business of tomorrow.
1 2 Acting responsibly leads to success BayWa takes on responsibility for the environment and society that goes beyond the business world – and aims to make a difference through how it acts. An efficient energy supply from renewable sources, healthy and affordable food and food security, healthy housing and sustaina- ble building, occupational health and safety, diversity and equal opportunity are just a few of the causes it is helping to advance through its wide range of initiatives. When it comes to corporate financing, BayWa also increasingly relies on instruments with sus- tainability-related elements. BayWa has received outside recognition for its commit- ment, including honours as one of the United Nations’ 50 Sustainability & Climate Leaders or ratings from the CDP (Carbon Disclosure Project) and the respected rating agency MSCI ESG Research.
1 3 Our growth fields BayWa’s activities in the energy and agriculture business units give it a presence in areas whose importance is set to grow even further in future. Through their urgency, the global challenges we all face today, with their far-reaching consequences, make the situation even more dynamic. BayWa sees this as a tremendous opportunity for its growth fields, the Renewable Energies, Cefetra Group and Global Produce Segments. Renewable Energies The energy industry is responsible for rough- ly 73% of global CO2 emissions through the burning of coal, oil and gas. The EU Com- mission’s Green Deal aims to reduce emis- sions by a minimum of 55% by 2030, while the new German federal government is pushing for an accelerated phase-out of coal power by that same deadline. In addition, the last German nuclear reactors will be going offline in 2022. By contrast, worldwide ener- gy demand continues to rise and could stand some 50% higher than it does today by the year 2050. These overall conditions consti- tute the basis for fundamental and long-term growth in the field of renewable energies. Reduction in emissions of at least by 2030 International agricultural trade The demand for food and feedstuffs contin- ues to increase, driven by sustained popula- tion growth (to an estimated 9.7 billion peo- ple by 2050) and changing eating habits. At the same time, global cropland per capita will shrink from 0.3 hectares in 2000 to 0.2 hectares in 2050. The EU Commission’s Farm2Fork strategy proposes a 20% reduc- tion in the usage of mineral fertilizers and a 50% reduction in the use of crop protection products. Going forward, the objective is to make agriculture both more ecologically sustainable and more productive. This struc- tured field of tension presents both major opportunities and challenges for internation- al trade in agricultural commodities – the transmission belt of world food supply. Global Produce – fruit and vegetables A healthy diet is in vogue – not just in wealth- ier industrialised countries, but increasingly also in populous emerging nations such as China or India. Shifting global trading struc- tures for fruit and vegetables combined with increasing demands from food retailers and consumers are creating a dynamic market landscape. This environment necessitates large suppliers with a comprehensive range of products and high-performance logistics to fulfil the growing expectations of the mar- ket. This presents significant growth possi- bilities for internationally positioned players with capital and innovation resources.
1 4 Strategic growth fields Renewable Energies Segment BayWa is a key player in the global growth field of renewable energies through its subsidiary BayWa r.e. AG. BayWa r.e. lives by its “r.e. think energy” motto, covering all material aspects of the renewable energies’ value chain with its range of services. Current track record for BayWa r.e. worldwide Its business portfolio is diversified in three ways – by country, energy carrier and business activity. This strategy opens up wide-ranging growth potential, limits risks and stabilises business development. Business activities are divided into three areas: Projects, Operations and Solutions. Projects encompasses international project planning, development and the construction of wind farms and solar parks, as well as the sale of plants ready for operation. Additional growth potential has resulted from the entry into the offshore wind farm market. BayWa r.e. is already established as an innovation leader for floating solar parks (floating PV) and the dual use of agricultural land (Agri- PV). Activities in the Operations area are primarily based on long-term contracts and generate stable, calculable revenue streams. This is the case, for example, in the technical and commercial management of wind parks and solar farms as well as biogas facilities and the maintenance of plants, as well as energy trading and the marketing of electricity from growing portfolio of own plants as an inde- pendent power producer (IPP). In the rapidly growing energy trading sector, BayWa r.e. is concentrating on the marketing of electricity generated from renewable sources. In the Solutions area, BayWa r.e. is world’s leading trader in the sale of photovoltaic systems and components and maintains a network of over 11,000 installers and sales “ We develop solutions for the future and make energy better – for our customers and the people who live on this planet. 2 GW in installed output from wind energy 3 GW in installed output from solar energy 5.5 GW in output, produced by supplied solar modules
1 5 Pro Climate With its business models and expertise in the fields of renewa- ble energies, BayWa r.e. plays an essential part in the implementa- tion of BayWa’s sustainability targets. Between 2017 and 2021 alone, BayWa r.e. contributed 7,8 gigawatts (GW) of generation ca pa ci ty through the construction of re newable energy projects and the supply of solar components and systems. Since 2018, all operational emissions from all BayWa r.e. locations, vehicle fleets and all business travel have been wholly CO2 compensated. Within the scope of the Sustaina- bility Framework 2025, BayWa r.e. has also expanded its commit- ment to sustainability beyond CO2 compensation to include social, economic and ecological issues. partners. It also offers tailored energy solu- tions to supply energy to internationally active industrial customers, as well as elec- tromobility concepts and services. The year 2021 saw decisive action being taken for the future of the company. A capital increase, which included the Swiss company Energy Infrastructure Partners AG (EIP) acquiring a 49% stake in the company as a strategic partner, ensured BayWa r.e. € 530 mil lion in additional equity and helped to complete the transformation into a stock corporation under German law. This gives BayWa r.e. room for its continued expansion. Furthermore, the capital increase is a signal, both internally and externally, that BayWa and EIP have full confidence in BayWa r.e. ’s continued development into a global market leader in the field of renewable energies. Project Tout Vent wind farm The early involvement and participation of local communities strengthens acceptance of the construction of wind farms and solar parks. The BayWa r.e. Tout Vent wind farm in the French region of Charente-Maritime, which began operations in September 2021, is a great example of this approach. The project was preceded by comprehensive talks with representatives of neighbouring communities. Significant concerns voiced by the population were taken into account with the aim of finding solutions. The rotor blades were equipped with a special tension system to reduce noise pollution, and the citizens received attractive offers to enable their transition to green, locally generated energy. An additional concession was made that ensures the facilities will be recycled at the end of their operational life cycle in roughly 30 years, and that the land used will be fully restored. In the end, the wind farm construc- tion went off without a hitch and was com- pleted in only ten months as planned. Six wind turbines with a total installed output of 18 megawatts (MW) now generate electricity for some 10,000 private households in the windy region. € 135.0 m in earnings before interest and tax (EBIT) in the Renewable Energies Segment in 2021 A wind turbine comes into being.
1 6 Strategic growth fields Cefetra Group Segment The Cefetra Group Segment is an important link between produc- ers and processors in the global agricultural ingredients market. Cefetra has a worldwide procurement network with major producers and directly deals with farmers, including contract farming. As a logistical expert – built on lean and flexi- ble structures – Cefetra Group has storage and transport capacities based largely on long-term agreements with logistics service providers to minimise capital commitments. The segment supplies a broad spectrum of customers in the animal nutrition and food industry. In the food industry, those buyers include mill operators, breweries, beverage producers, industrial bakeries, and various other food ingredients industries. The paper industry, bioenergy producers, pharmaceuti- cal companies, and petrochemical producers are also among its customers. In the financial year 2021, the segment’s trading volume stood at around 22 million tonnes. Of that volume, 46% was attributa- ble to various types and qualities of grain, 19% to soya products, 27% to co-products and 8% to specialities such as pulses, various organic ingredients, chia, quinoa, starch, or wheat gluten. € 38.8 m in earnings before interest and tax (EBIT) in the Cefetra Group Segment in 2021 Linked procurement around the globe.
1 7 Cefetra Group value chain Farming Trade in agricultural products Processing at (oil) mills, malt houses, feedstuff factories, power supply companies Collecting & storage Logistics Collecting & storage Cefetra Group Other players Many ways to make a difference Cefetra Group pursues a com- prehensive sustainability strategy. Since 2020, the segment has been meeting its energy needs through renewable energies. It also aims to achieve climate neu- trality within its supply chain by 2030. Cefetra Group is a leader in trade involving feedstuffs without artificial additives, is constantly increasing the share of sustaina- ble products it offers and values transparent, traceable supply chains. In keeping with its local- for-local philosophy, two-thirds of the trading volume handled within Europe comes from European producers. With its “Road to Ingredients” strategy, Cefetra Group generally strives to expand its business with value-creating ingredients without neglecting its traditional strengths in areas such as the animal nutrition industry. The stated goal is to continue to expand its speciality ingredients business as it can count on strong demand growth creating additional value for their customers. These markets offer higher margin potential, with diversification allowing the Group to grow and further stabilise its performance. Growth, profitability, diversification, and sustainability are strategic cornerstones of Cefetra Group. Project Cefetra Dairy: Cheese, butter and more Around the world, more and more consum- ers are interested in a balanced diet – even in countries where demand outstrips pro- duction capacity. In response to this trend, Cefetra Group entered the dairy products market in November 2021. The newly found- ed Cefetra Dairy B.V. offers a wide range of dairy products such as cheese, butter and milk powder, as well as milk alternatives. Through this initiative, Cefetra Group has added another field to its diversification strategy. “ Growth, profitability, diversification and sustainability are the strategic cornerstones of Cefetra Group.
1 8 Strategic growth fields Global Produce Segment Apples from New Zealand or Lake Constance, mangoes from Brazil, avocados from South Africa, grapes from Peru, not to mention sweet potatoes, asparagus or tomatoes – the Global Produce Seg- ment’s procurement network stretches across the globe and guarantees a wide-ranging, attractive product portfolio. As a result, BayWa is able to offer stable value chains to its food retail and wholesale customers as a reliable and high-performing partner. The close cooperation with growers that enables the procurement of fresh prod- ucts and their marketing to a diverse cus- tomer portfolio in numerous countries is guaranteed through sophisticated logistics comprised of efficient sorting, storage, pack- aging and transport processes, all custom- ised to the high quality standards of the products. The starting point for the Global Produce Segment’s expansive development was BayWa’s important position as a single seller of dessert pome fruit in Germany. Its trajec- tory truly took off with the 2012 acquisition of the New Zealand-based company T&G Global, the largest provider of apples in New Zealand, with international trade links to the Americas, Asia, Australia and Europe. In doing so, BayWa laid the foundation for the year-round marketing of dessert pome fruit from the northern and southern hemi- spheres. Further acquisitions, such as TFC, an established distributor of fresh tropical fruits and vegetables from around the world, allowed Global Produce to expand its prod- uct portfolio further and tap into new pro- curement and sales markets. In order to anchor the fresh products business in its sector in a future-oriented manner and make use of synergies, BayWa began pooling all of the segment’s activities under the umbrella of BayWa Global Produce GmbH in May 2021. A joint strategy based on the four pillars of variety development, farming, mar- kets and innovations builds on the existing strengths of the four Group companies with the aim of furthering their growth in a target- ed manner through investments and partner- ships. “ Through its sustainability management, Global Produce is strengthening its market position and creating added value for the environment and society. Global Produce product portfolio Apples Exotic products Soft and stone fruit Tomatoes
1 9 Harvesting apples at T&G Global in New Zealand. € 42.6 m in earnings before interest and tax (EBIT) in the Global Produce Segment in 2021 Well beyond standard Legal norms and certifications ensure process and product secu- rity in supply chains in the fruits and vegetable sector. In its part- nerships with suppliers, Global Produce goes significantly above and beyond these standards. Examples include water manage- ment in South African stone fruit cultivation, the avoidance of CO2 emissions in the transportation of bananas from Ecuador to New Zealand or climate neutrality at Global Produce locations through- out Europe. A joint commitment to sustainability strengthens supplier relationships and therefore food supply reliability. The global increase in demand for high- quality and vitamin-rich fruits and vegetables received an additional boost from the coro- navirus pandemic. All signs clearly point to growth: Global Produce has managed to multiply its revenues from € 52 million to roughly € 1 billion since 2008. Other stra- tegic imperatives include the continued development and diversification of the prod- uct portfolio and the expansion of backward integration to secure goods in the producer countries, as well as efforts to tap into new markets and distribution channels. Global Produce is also expanding its sustainability management through a joint strategy of initiatives that count towards economic, ecological and social targets. In doing so, the segment is strengthening its market position and creating added value for the environment and society. Project ENVY™: An apple conquers the world Cultivated in New Zealand, the ENVY™ brand apple now enjoys growing popularity globally, with its exceptional firm crispness, sweet taste and a slight hint of pear already delight- ing consumers in more than 60 countries. Its placement in the premium segment and its consistently high yields make it an ex- tremely attractive variety for producers to integrate into a future-proof range of prod- ucts. Following extraordinarily successful sales in the US, Asia and across Europe, trademark owners T&G Global are now help- ing bring ENVY™ to Germany. The develop- ment programme comprises centralised management for the brand apple that will ensure specialised cultivation and quality management. The distinctive ENVYTM brand packaging serves to guarantee recognition value and will soon have made its way from domestic farming to German fruit aisles.
2 0 Highlights in the financial year 2021 All business units con- tribute to positive business development. Consolidated revenues up 20.5% to € 19.8 billion. Group EBIT up 26.0% to € 266.6 million. Dividend raised to € 1.05 per share (subject to approval by the Annual General Meeting). 2021
2 1 The Financial Year “ In a market environment that remained challen g- ing, BayWa once again showed itself to be crisis- resilient in 2021 and had a very successful year. We want our shareholders to benefit from this success, which is why we are increasing our divi- dend by 5%.
2 2 BayWa on the Capital Market Active communication with the capital market despite the coronavirus pandemic As a listed company, BayWa continuously provides the various stakeholders in the capital market with information about the Group’s performance, as well as on its long-term outlook. The Investor Relations department, which is directly overseen by the Chief Financial Officer, is responsible for communicating openly and reliably with analysts, institutional investors, private investors and the finan- cial press. The objective is to increase understanding of BayWa’s business model and thereby strengthen the trust of the capital market in the company. Nurturing contacts with existing and potential investors at home and abroad is therefore an integral part of BayWa’s investor relations activities. In 2021, BayWa held talks with fund managers and financial analysts solely by way of video conferencing and conference calls due to the coronavirus pandemic. The Annual General Meeting of BayWa AG took place virtually on 11 May 2021. Additional transparency is created through the internet; all financial reports and company presentations are available online in German and English at: www. baywa.com/investor_ relations or www.baywa.com/en/investor_relations BayWa’s registered shares with restricted transferability are traded on the regu- lated markets on the Frankfurt and Munich stock exchanges, in the XETRA trading system and OTC on the stock exchanges of Berlin, Bremen, Dusseldorf, Hamburg and Stuttgart. BayWa meets the requirements of the Prime Standard for company reporting and transparency, which are high even in international comparison. Positive performance of the BayWa share in % 30 20 0 00 90 Jan BayWa SDAX Mar May Jul Sep Nov BayWa AG shareholder structure as at December Bayerische Raiffeisen-Beteiligungs- AG: 34.3% Raiffeisen Agrar Invest AG: 27.0% Freefloat: 38.7%
2 3 The German stock market gained up to 15.8% at times in 2021 and closed at 15,885 points. The BayWa registered share with restricted transferability achieved a price of € 38.55 at the close of trading in 2021, an increase of 16.6% compared with the 2020 closing price of € 33.05. Including the € 1.00 dividend payment for 2020 that was distributed in the summer of 2021 – corresponding to a dividend return of 3.0% in relation to the closing price in 2020 – the total returns for BayWa shareholders amounted to approximately 19.6% in 2021. Dividend increase proposed BayWa is continuing to uphold the steady, earnings-oriented dividend policy that has been pursued in recent years. The Board of Management and Supervisory Board will therefore put forward a proposal to the Annual General Meeting to raise the dividend by 5 cents to € 1.05 per dividend-bearing share. Sustainable dividend development (Dividend per share in € ) . . . . . . . . . . .05 .2 0.8 0.4 0,0 1 Subject to approval by the Annual General Meeting Allocation of share capital BayWa’s total share capital amounts to € 91,250,199.04. Liable capital increased by € 578,304.00 year on year owing to the subscription of employee shares valued at an arithmetical portion of share capital of € 2.56 each. Share capital comprises 35,644,609 registered shares, divided into two classes of shares: registered shares with restricted transferability (sec. ident. no. 519406), which are more liquid due to their high number of 34,401,358, as well as 1,243,251 registered shares that are not subject to restricted transferability (sec. ident. no. 519400). The latter were largely created by issuing shares as part of mergers. The trading volume of this “smaller” class of shares is very limited owing to their low number. Both classes of shares endow equal rights upon the holder. Long-term price performance of the BayWa share (in € ) 1 High Low Closing price Market capitalisation (in € million) 2017 34.00 30.25 32.07 1,122.1 2018 33.05 19.90 20.60 728.9 2019 29.40 20.95 28.25 994.3 2020 33.25 21.70 33.05 2021 42.05 30.95 38.55 1,169.9 1,375.6 1 XETRA prices: registered share with restricted transferability (sec. ident. no. 519406); market capitalisation: both classes of shares (sec. ident. no. 519406 and sec. ident. no. 519400) BayWa’s strategic goals for 2025 Excellence and growth: € 400 to 450 million in EBIT Diversification and flexibility: > 70% of EBIT from multinational business activities Business innovation: > 50% of EBIT from green busi- ness activities Climate impact: – 22% reduction in greenhouse gas emissions
2 4 Overview of the Financial Year 2021 The BayWa Group developed very positively in 2021, despite the ongoing corona- virus pandemic. In nearly all business units and segments, the corporate goals for the reporting year were met or exceeded. Revenues in the Renewable Energies Segment rose by 61.1% to € 3,560.0 million in the financial year 2021. Plant sales achieved a total output of 612.8 megawatts (MW) in the reporting year, with turnkey energy plants accounting for a share of roughly 74%. At € 135.0 million, BayWa r.e. set a new record in terms of EBIT and saw a significant increase compared to the previous record of € 110.9 million, which was set in the previous year. The improvement in both revenues and EBIT exceeded the high expectations and was primarily attributable to project sales and growth in solar trading. In the Energy Segment, EBIT was down on the previous-year figure in 2021, as expected. This was due in particular to a significant decline in demand for heating oil and fuels on account of the sharp rise in oil prices and additional price increas- es caused by the introduction of carbon pricing. Thanks to the sharp rise in heat- ing oil and fuel prices, revenues increased by 21.9% to € 2,128.2 million, following € 1,745.2 million in the previous year. EBIT fell by 45.3% from last year’s record of € 31.8 million to € 17.4 million in 2021, primarily due to the lower demand for heating oil and fuels. However, business involving wood pellets saw clear gains, helping to compensate for part of the drop in earnings from heating oil and fuel. The Cefetra Group Segment comprises international grain and oilseed trade ac- tivities. The Cefetra Group Segment’s grain and oilseed handling volume fell by 4.8% to 21.8 million tonnes in the financial year 2021. This decline was caused by the strategic decision in 2020 to close the Cefetra Hungary Kft. trading office in Hungary and the discontinuation of the export business in some regions of the Middle East. By contrast, the specialities business – and Royal Ingredients in particular – developed very positively. The Cefetra Group Segment’s revenues increased by 18.8% to € 4,996.3 million in the reporting year, mainly due to price effects. EBIT rose by 79.6% to € 38.8 million in the reporting year. High volatility enabled improved profit margins from product trade activities. The expansion of the higher-margin specialities business and further product diversification in sustainable products also contributed to the increase in earnings. The Global Produce Segment recorded a considerable 11% decrease in market- ing volume to 444,337 tonnes in the financial year 2021, with figures down year on year in all product categories. In particular, lower apple marketing volume, revenue losses in New Zealand on account of local lockdown measures and the rise in logistics costs for all imported goods had a negative impact. Tropical fruit, soft and stone fruit, and vegetable fruits also saw weather-related declines in sales. Overall, the Global Produce Segment generated revenues of € 960.7 million in the reporting year, following € 938.5 million in the previous year. The lower sales volumes were largely balanced out by higher product prices on the markets. EBIT increased by € 0.8 million year on year to stand at € 42.6 million in 2021, following € 41.8 million in the previous year. The year-on-year improvement in earnings is primarily attributable to one-off income from the sale of properties no longer required for business purposes of € 13.0 million and the awarding of additional cultivation rights for Envy premium apples. The Agri Trade & Service Segment comprises the agricultural input business, the collecting of agricultural products and grain and oilseed trade activities, primarily
2 5 in Germany and Austria. In the agricultural input business, sales of fertilizer bene- fited in the first half of 2021 from optimum weather conditions and higher prices. Crop protection product trade also expanded thanks to more favourable weather conditions, as the wet and warm weather necessitated greater use of fungicides in particular compared to the dry previous years. Seed demand was on a par with the previous year. BayWa benefited from its wide product range and higher de- mand for its private brands in all main product groups. In terms of feedstuff, BayWa managed to keep its sales volume on a par with the previous year. Grain and oil- seed trading volume decreased in the Agri Trade & Service Segment by 2.4% year on year to just under 8.4 million tonnes in 2021. Overall, revenues in the Agri Trade & Service Segment increased by 16.9% to € 4,178.7 million, primarily on account of the clear year-on-year rise in grain prices. EBIT stood at € 12.3 million in 2021, following a negative EBIT of € 14.3 million in the previous year. In the Agricultural Equipment Segment, the boom seen in 2020 did not continue in 2021. The reduction in the value added tax rate, which expired on 31 December 2020, led to anticipatory effects. In the reporting year, however, invoicing was shifted into the following year in some cases on account of the tense supply situa- tion. In the Agricultural Equipment Segment’s service business and spare parts sales, the above-average registration figures in past years led to an increase in capacity utilisation, with workshops benefiting from their substantial stocks and inventories in a market environment plagued by supply bottlenecks for spare parts. In the international business, the Dutch Group company Agrimec Group B.V. performed roughly on a par with the previous year. All in all, the Agricultural Equipment Segment surpassed its record revenues from 2020 by 2.1% in the reporting year, with revenues of € 1,909.0 million. By contrast, EBIT fell to € 48.6 million in 2021, following € 54.4 million in the previous year. The decline was mainly attributable to lower new machinery sales and cost increases under collec- tive wage agreements. The Building Materials Segment saw a very positive financial year 2021. The marked growth was attributable to strong construction activity and the successful implementation of the multi-specialist strategy. The sale and product range spe- cialisations in wooden construction, formwork equipment, prefabricated compo- nents, metal roofing, flat roofing and pallets, which were introduced in 2020, continued to be an important success factor in 2021. In addition, the Building Materials Segment benefited from the fact that, as a key part of the economy, the building materials locations in Germany was unaffected by the temporary clo- sures to stop the spread of the coronavirus in the first half of 2021. BayWa Bau Projekt GmbH was also able to make a positive contribution to business develop- ment and is becoming an important pillar of BayWa’s building materials trade activities. Overall, the Building Materials Segment’s revenues increased by 9.8% to € 2,084.2 million in the financial year 2021, with EBIT increasing by 56.1% to € 73.2 million, following € 46.9 million in the previous year. BayWa Group + .% ,. ,. Revenues in € million + .% . . EBIT in € million (Condensed excerpt from the Consolidated Manage- ment Report of BayWa AG’s Consolidated Financial Statements 2021)
2 6 Consolidated Balance Sheet as at 31 December 2021 Assets (In € million) Non-current assets Fixed assets Receivables and other assets Deferred tax assets Current assets Securities Inventories including biological assets Receivables and other assets Cash and cash equivalents Non-current assets held for sale/disposal groups Total assets Shareholders’ equity and liabilities (In € million) Equity Non-current liabilities Provisions Long-term debt and liabilities from finance leasing Other liabilities Deferred tax liabilities Current liabilities Provisions Short-term debt and liabilities from finance leasing Other liabilities Liabilities from disposal groups Total shareholders’ equity and liabilities 31/12/2020 1 31/12/2021 3,394.5 58.7 85.7 3,538.9 1.2 2,952.0 2,284.4 168.4 5,406.0 5.1 8,950.0 3,522.3 129.4 119.6 3,771.3 1.1 4,228.2 3,350.3 399.1 7,978.7 21.4 11,771.4 31/12/2020 1 31/12/2021 1.153,6 1.816,1 839.0 1,876.0 113.3 102.4 2,930.7 331.4 2,289.4 2,244.9 4,865.7 0.0 8,950.0 778.3 3,578.7 141.3 133.1 4,631.4 448.9 1,544.2 3,320.7 5,313.8 10.1 11,771.4 1 The previous year’s figures have been adjusted in accordance with IAS 8.42. Further details are available in Note A.7 of BayWa AG’s Notes to the Consolidated Financial Statements for 2021.
2 7 Consolidated Income Statement 2021 Continued operations (In € million) Revenues Inventory changes Other own work capitalised Other operating income Cost of materials Gross profit Personnel expenses Depreciation/amortisation Other operating expenses Result of operating activities Income from participating interests recognised at equity Other income from shareholdings Interest income Interest expenses Financial result Earnings before tax (EBT) Income tax expenses Consolidated net result for the year thereof: profit share of minority interest thereof: profit share of shareholders of the parent company Basic earnings per share (in € ) Diluted earnings per share (in € ) 2020 1 2021 16,464.70 19,839.10 446.6 16.4 353.7 928.8 16.3 404.2 – 14,939.30 – 18,457.10 2,342.10 2,731.30 – 1,184.90 – 1,320.50 – 253.2 – 695.6 208.4 – 3.3 6.5 14.5 – 118.5 – 100.8 107.6 – 48.1 59.5 23.6 35.9 0.66 0.66 – 286.2 – 855.0 269.6 – 10.3 7.3 15.7 – 121.7 – 109.0 160.6 – 31.8 128.8 58.2 70.7 1.63 1.63 1 The previous year’s figures have been adjusted in accordance with IAS 8.42. Further details are available in Note A.7 of BayWa AG’s Notes to the Consolidated Financial Statements for 2021. Detailed information about BayWa AG’s business performance in 2021 is available online in the Consolidated Financial Statement 2021: www.baywa.com