BayWa Company Brochure 2018

Key data at a glance BayWa Group in € million Revenues Agriculture Segment Energy Segment Building Materials Segment Innovation & Digitalisation Segment Other Activities EBITDA EBIT Agriculture Segment Energy Segment Building Materials Segment Innovation & Digitalisation Segment Other Activities EBT Consolidated net result for the year Profit share of minority interest Profit share of shareholders of the parent company Total assets (as at 31/12) Non-current assets Current assets Non-current liabilities Current liabilities Equity Equity ratio in % Issued share capital (as at 31/12) in € million Number of shares (as at 31/12) in million shares Earnings per share in € Dividend per share in € 2014 2015 2016 2017 2018 15,201.8 10,105.3 3,489,0 1,524.8 82.7 14,928.1 10,149.5 3,264.2 1,496.4 5,2 12.8 15,409.9 10,884.5 2,976.0 1.530.1 6.0 13.3 16,055.1 16,625.7 10,836.5 11,015.9 3,594.7 1,606.1 6.9 10.9 3,968.5 1,617.5 10.7 13.1 279.8 288.3 272.6 318.4 315.3 152.1 107.8 42.3 28.0 158.1 144.7 90.1 77.2 27.4 −2.9 70.1 83.1 28.5 −8.6 −26.0 −33.7 −28.6 80.4 80.7 19.3 61.4 5,652.0 2,261.7 3,371.8 2,108.1 2,488.4 1,050.4 18.6 88.7 34.7 1.78 0.80 88.1 61.6 13.4 48.2 6,036.7 2,287.2 3,739.7 2,191.5 2,769.3 1,075.9 17.8 89.0 34.8 1.39 0.85 69.6 52.7 21.6 31.1 6,474.9 2,355.7 4,094.2 2,292.2 3,084.3 1,098.3 17.0 89.3 34.9 0.90 0.85 171.3 82.1 85.0 30.1 −10.8 −15.2 102.4 67.2 27.9 39.3 6,488.0 2,396.9 4,077.4 2,065.7 2,986.8 1,435.5 22.1 89.6 35.0 1.13 0.90 172.4 100.1 96.0 31.1 −12.3 −42.5 92.6 54.9 22.6 32.3 7,511.5 2,476.9 5,030.4 2,074.7 4,047.7 1,389.1 18.5 89.9 35.1 0.92 0.90* Number of employees (as at 31/12) 15,917 16,578 16,711 17,323 17,864 * Subject to approval by the Annual General Meeting of Shareholders

Editorial Dear Readers, Even after more than ten years as the company’s Chief Executive Officer, I still keep discovering new and inspir- ing things at BayWa. By that I mean special solutions for our customers and ideas about how we can further develop and advance our business. Located in the southern Spanish region of Andalusia, Don Rodrigo – the first solar park built and developed without any subsidies whatsoever – represents a true milestone in our history. The Renewable Energies business unit summoned all its strength to complete the construction and sale of the largest BayWa solar park to date in record time. Such achievements make me immensely proud of the people at BayWa. The example of Don Rodrigo makes it crystal clear that BayWa is capable of developing solutions for the most urgent issues of the present day. In all our business units, we are actively working to address the conse- quences of climate change and promote sustainably oriented, innovative business models. As a result, I believe that BayWa is strong enough and has the exper- tise essential to seize the opportunities that arise in an environment characterised by change and advancing digitalisation. The basis for doing so is our close connection with our customers and their needs, which sometimes goes back generations. By the way, unity and relationships are two topics you will encounter frequently in this brochure, especially in its first part. As with our employees and customers, we also feel a sense of Prof. Klaus Josef Lutz, Chief Executive Officer of BayWa AG unity with our suppliers, shareholders and business partners, as well as with the regions in which we do business. To my mind, this unity will ultimately lead to success once we succeed in creating joint solutions for the challenges of our time and the future. In many fields of activity, we have already succeeded in doing just that, which you will see on the following pages. Best regards, Klaus Josef Lutz Contents 02 The Company 06 Solutions for the challenges of our time Agriculture Segment 12 18 Energy Segment 24 Building Materials Segment 28 Innovation & Digitalisation Segment 32 Sustainability 36 The Financial Year 2018 BayWa and the Capital 37 Market Overview of the Financial Year 2018 Consolidated Balance Sheet as at 31 December 2018 Consolidated Income Statement for 2018 43 40 42 44 The BayWa Foundation

The Company “Solutions unite” is an important guiding princi- ple for BayWa. It has always viewed its mission as providing products and services that benefit its customers personally – or, for companies and farmers, benefit its customers’ businesses. To continue playing this role in the future, in a time marked by change, BayWa is evolving to become an integrated provider of solutions and a project developer. BayWa’s core segments Agriculture, Energy and Building Materials are at the heart of everything the company does, as are the requirements of its customers and its bond with them. The BayWa AG BayWa feels a sense of connection with its customers, employees and investors, as well as with the general public. This Group-wide philosophy is built on the firm belief in being united for success. 2 The Company Since 1923 bound by cooperative values and open to change: for BayWa, this spirit has been driving the company’s successful development for 96 years. > €6 m is the amount that BayWa AG invested in environmental protection and biodiversity measures in 2018. Approx. 18,000 employees work for the BayWa Group, roughly 40% of whom work for the company around the world at subsidiaries outside Germany.

Agriculture Energy Building Materials Conventional Energy Trade in heating fuels, fuels and lubricants Renewable Energies Project planning, services, PV trade, energy trade Building Materials Trading activities for building materials, services, system solutions BAST (BayWa Agri Supply & Trade) International trade in produce, supply chain management Agri Trade & Service Trade in agricultural inputs, trade and recording of produce, logistics Global Produce Trade in fruit, cultivation and marketing of select vegetable types Agricultural Equipment Trade in agricultural machi- nery, service and repairs Innovation & Digitalisation Digital Farming & eBusiness Development and sales of digital solutions for agriculture, BayWa Portal >40 The BayWa Group is represented in more than 40 countries worldwide. Globalisation, digitalisation and climate change mitigation are rapidly transforming all facets of the economy and our lives. As a trading, logistics and services group with worldwide operations, BayWa also sees these challenges as an opportunity. It is utilising these changes with a view to the future and is developing solutions to secure the inde- pendence and competitive- ness of the company – solu- tions that will not only guide BayWa and its customers to- wards the future, but will also serve society and the environ- ment. From the very start, BayWa has been closely tied to people and their basic needs for food, warmth, energy and shelter. Even after 96 years, the compa- ny still feels a sense of obliga- tion to these needs. However, the tasks it faces are far more complex. A growing global pop- ulation calls for sustainably sup- plying ever more people with food and energy. Therefore, BayWa provides products and services that make agriculture more efficient in harmony with the environment and builds plants for renewable energies. In Germany, it is helping power the advancement of energy effi- ciency and healthy housing in the construction sector. BayWa’s business has to do with real, tangible products, such as grain and fruit, animal feed, seed and fertiliser, tractors and ma- chinery, building materials and fuels, as well as wind farms and solar parks. But even these areas, which quite literally have their roots in the soil and the earth’s elements, are benefiting from the opportunities offered by the digital world, with cus- tomers ordering products online, using satellite technology to help crops grow and analysing data to optimise processes in real life. BayWa is keeping pace with these changes through its dedi- cated Innovation & Digitalisation Segment. To spot new trends early in the game, BayWa in- vests in start-up competitions, plus it supports promising new companies with the aim of help- ing their innovative ideas gain a foothold in the market. Whether analogue or digital, BayWa focuses on customers in everything it does, as described in the company’s vision: “For our customers, we are the trust- ed partner. We connect prod- ucts, advice and services, ena- bling our customers to achieve their best.” The Company 3

At a glance In the Agriculture Segment, BayWa covers almost the entire value chain in agriculture. Its focus is on trade in agricul- tural produce and inputs, as well as on the goods, machinery and services needed for production. As one of the largest traders in Germany and Austria, the Building Materials Segment markets and sells an entire range of building materials, from construction, civil engineering and extensions, to renova- tions, modernisation, gardening and land- scaping. The Innovation & Digitalisation Segment pools the growth fields of Digital Farming and eBusi- ness and is essential to the company’s future strategy. The goal is to play a leading role in Europe in the field of digitali- sation. The Energy Segment comprises trading ac- tivities in conventional energy sources, such as mineral-oil-based fuels and lubricants. In the field of renewable energies, it is also responsible for project business involving the construction of wind farms and solar parks, as well as the trading business involving components and sys- tems for photovoltaic installations. BayWa’s entrepre- neurial behaviour has a long-term focus and is shaped by the compa- ny’s tremendous responsibility. Through this vision, BayWa is building on its roots in agricul- tural cooperative trading and its mission to provide rural regions with everything they require for agriculture. Today’s BayWa is a group with international opera- tions in the areas of trading, ser- vices and logistics in its Agricul- ture, Energy and Building Materials Segments. The coop- erative spirit and regional con- nectedness are still immensely important for the company. Tra- ditionally, the Group’s core mar- kets are located in southern Germany and Austria. However, BayWa has since grown to be- come the largest agricultural trader in Germany and is one of the leading agricultural com- modities trading companies in the world. The Renewable Ener- gies business unit has become an important mainstay. BayWa r.e., which pools all activities in the field of renewable energies, has been very successful in ad- vancing its project business worldwide. The environment and the mar- kets in which BayWa operates continue to change – at an in- creasing pace and with a far-reaching impact. BayWa sees this change as an opportu- nity and is acting accordingly. In keeping with the guiding princi- ple “We serve basic human needs, providing leading pro- jects and solutions for food, en- ergy and building”, BayWa is becoming a trusted partner to its customers when it comes to integrated solutions. The goal is to contribute to customers’ success and make work easier for them by intelligently linking products, advice and service. As a strong partner to customers, BayWa ensures that the compa- ny remains independent and competitive. Since its renovation and the addition of extra floors, BayWa’s corporate headquarters have been an eye-catching landmark in Munich’s east half. 4 The Company

The Board of Manage- ment of BayWa AG: (from left) Marcus Pöllinger, Reinhard Wolf, Klaus Josef Lutz, Matthias Taft, Andreas Helber The Board of Management Prof. Klaus Josef Lutz Chief Executive Officer since 01/07/2008 Andreas Helber Chief Financial Officer since 15/11/2010 Corporate Controlling, Corpo- rate Finance & Accounting, Corporate Insurance, Corporate Legal, Corporate Real Estate Management, Investor Rela- tions, BayWa Services (Business Service Center, HR Shared Service Center, Corporate Purchasing Own Requirements and Services), Member of the executive and supervisory committees of the international agriculture and fruit holdings BayWa Agri Supply & Trade (BAST), Global Produce, Corporate Audit, Corporate Compliance, Corporate Environ- ment, Health & Safety, Corporate Governance, Corporate HR, Corporate M&A, Corporate Marketing, Corporate Risk, Corporate Strategy & Innovation, Corpo- rate Sustainability, Group IT/CIO Organisation, PR/Corporate Communications/Public Affairs, RI-Solution, BayWa Foundation, Chairman of the executive and supervisory committees of the international agriculture and fruit holdings Roland Schuler – The long-serving Board of Management member Roland Schuler retired at the end of 2018. Schuler had been a member of the BayWa Board of Man- agement since October 2002 and was most recently responsible for Agri Trade & Service, Agricultural Equipment and Digital Farming. Allocation of departments as at 01/04/2019 Marcus Pöllinger since 01/11/2018 Agri Trade & Service, Agricultur- al Equipment, Building Materi- als, Digital Farming, Chairman of the executive and supervisory committees of international Agri Services holdings Matthias Taft since 01/04/2015 Energy, Renewable Energies (BayWa r.e. renewable energy GmbH), Chairman of the execu- tive and supervisory commit- tees of the international energy holdings Reinhard Wolf since 01/09/2013 RWA Raiffeisen Ware Austria AG, Vienna, Austria The Company 5

1,300 Biokreis farmers In future, BayWa’s membership in Biokreis e.V. will allow it to record and market grain grown by Germany’s 1,300 Biokreis farmers. p. 10 VariableRain can cut water consumption for the irrigation of crops by up to 30% p. 11 33 million tonnes of grain and oilseeds were traded by the BayWa Group in 2018. p. 14 60,000 tonnes of CO2 were offset by the BayWa Group in 2018 by purchasing emission allowances. p. 35 > 6,000 tested low-emission building materials from various different manufacturers and brands are included in BayWa’s product database. pp. 9 and 27 6 Unity Approx. 700 mobile service vehicles are in use at BayWa to get defective combines and other equipment back up and running again. p. 10 70% fewer resources for ten times the tomato harvest compared to outdoor pro- duction: two climate-con- trolled greenhouses in the UAE make it possible. p. 9

93,000 Spanish households a year are provided with electricity from Don Rodrigo, BayWa r.e.’s largest solar park to date. p. 8 Solutions for the challenges of our time 8,000 charging stations for electric vehicles in Germany accept the BayWa filling station card. pp. 11 and 23 BayWa works hand in hand with its business partners to shape the future to their benefit and supports them in an internationally con- nected environment with the best solutions in the agriculture, energy and building sectors. On the following pages, selected projects and solutions illustrate the specific impact that BayWa’s partnership-based approach is hav- ing both regionally and internationally. Unity 7

First choice for Don Rodrigo: with roughly 2,900 hours of sunshine a year, Spain’s fourth-largest city, Seville, is one of the sunniest in the country. Solar power packs a punch – even without subsidies Andalusia is a popular holiday region for sunseekers. In fact, one section of the area’s coastline is even referred to as the Costa del Sol (“coast of the sun”). BayWa has lever- aged the geographic benefits of the region – with up to ten hours of sunshine a day – by partnering with BayWa r.e. to build its larg- est solar park to date, Don Rodrigo, south of Seville in Andalusia. However, that is not all: Don Rodrigo is also the first solar park in Europe to generate green electricity at mar- ket prices without any subsidies whatsoever. The project ushers in a new phase in the energy transition in which it is possible to produce solar power at a lower price than conventional electricity. From start to finish, the entire solar park took just ten months to complete. During that time, some 500,000 solar modules were installed on a site measuring 265 hec- tares – the equivalent of around 370 foot- ball pitches. With a total output of 175 mega- watts, Don Rodrigo will provide roughly 93,000 Spanish households with power in the future. Don Rodrigo will not be the last project of its kind. This subsidy-free solar power plant is a shining example and a model for other pho- tovoltaic plants in southern Europe, espe- cially in sunny Spain. BayWa r.e., the leading project developer and service provider in the field of renewable energies, is already looking at further properties. A project pipe- line consisting of such subsidy-free solar power plants with a capacity of more than 1 gigawatt could be on the horizon in Spain in the years ahead. In line with BayWa r.e.’s business model, ownership of the power plants usually changes hands following completion. Today, Don Rodrigo is owned by MEAG, the asset management arm of Munich Re and Ergo. BayWa r.e. continues to provide technical management services, keeping it connected to the power plants it builds. The solar power harvested by Don Rodrigo is marketed through a 15-year power purchase agreement with the Norwegian energy conglomerate Statkraft. 8 Unity

marketing. The two climate-controlled greenhouses provide 10 hectares of land for cultivation. Despite reducing resource consumption by up to 70%, the facility increases harvest yields by a factor of ten compared to outdoor production – up to 6,000 tonnes a year. The premium tomatoes are sold under the “Mahalli” private brand at local food retailers. Local for local The United Arab Emirates (UAE) has one of the fastest-growing populations in the world. As a result, its need for food is constantly rising. However, the country’s climatic con- ditions greatly restrict the amount of agri- cultural activity that is possible, making food one of the desert state’s most important imports. At the same time, the demand for top-quality regionally and sustainably produced fruit and vegetables is high. BayWa has recognised and seized the mar- ket potential as part of its specialities strate- gy. Guided by a philosophy known as “local for local”, the company produces premium tomatoes in two climate-controlled green- houses in Al Ain, Abu Dhabi, all year round, regardless of the weather conditions. The tomatoes are then marketed locally. With this goal in mind, BayWa joined forces with the UAE-based Al Dahra Holding LLC in March 2017 to found a joint venture that made the project a reality and is now re- sponsible for both cultivation and product Strengthening regional tradespeople You might think there should not be any tox- ins in indoor air. But it is not that simple, since nearly all materials, even natural ones, emit substances that may be hazardous to health – some more so than others. In the past, such substances did not play as promi- nent of a role in air quality, as buildings were The right building materials – thanks to the BayWa BauGesund seal. designed to be less airtight, allowing toxins to escape more easily. Today’s energy-effi- cient designs, however, have changed this. The goal must be to construct buildings that are both energy efficient and able to serve as healthy living spaces. This can be achieved through the careful selection of low-emission building materials. Along with the BauGesund seal and the supporting database with over 6,000 tested, low-emission products, BayWa offers com- mercial customers a special range of ser- vices: the BauGesund partnership – a pro- gramme that certifies tradespeople, con - tractors and builders as BayWa BauGesund partners. The partnership includes training and advice on “healthy building and modern- isation”, as well as targeted marketing and sales support with the aim of strengthening regional tradespeople through knowledge transfer for an exciting market of the future. Unity 9

24/7 service Time is money, even in agriculture, forestry and the public sector. Machinery malfunctions cause delays in processes and can lead to substantial economic losses in the event of extended downtime. Providing a smooth and rapid ser- vice – just like the kind BayWa offers 24 hours a day, 365 days a year – is therefore all the more important. The technical breakdown service is available around the clock by calling a free service hotline. Workshop staff will visit customers at home or out in the field to repair defective machinery. About 700 mobile service vehicles, equipped with the necessary tools and diagnostics equipment, are on the road. The technician always has the right spare and wear parts at hand. The logistics centre in Röthlein, located in Germany’s Franconia region, is stocked with 120,000 different spare parts that can be ordered in the evening and delivered overnight to where they are needed. In livestock farming, poorly maintained milking machines can endanger the health of animals and the quality of milk. To minimise the risk of downtime, BayWa offers a 24-hour full-service package for milking equipment. plays an important role in supporting organ- ic farmers from sowing to marketing their produce. As part of its “BayWa Öko” con- cept, the company provides seed, catch crops, fertilisers and crop protection prod- ucts especially for organic agriculture, as well as specialised machinery, feed and hygiene products for livestock farming. The partnership between Biokreis and BayWa pro- vides the opportu- nity to pursue joint approaches that are designed to make agriculture more organic in general. Organic by BayWa BayWa sees great potential in organically and regionally produced agricultural products, which is why the company plans to grow in the organic segment. Following acceptance into the Bavarian bio label qual- ity programme “Bayerisches Bio-Siegel”, the company has been able to trade in agricultural produce of certified origin since 2018. At the same time, BayWa ensures the seamless documentation of the products. As of 2018, BayWa additionally became a member of Biokreis e.V., Germany’s fourth-largest organic agriculture associa- tion. In future, this membership will allow BayWa to record and market grain pro- duced by Germany’s 1,300 Biokreis farm- ers. For BayWa, expanding its recording and logistics infrastructure for organically and regionally produced agricultural products 10 Unity

BayWa is driving forward the assessment of satellite data in agriculture in its partnership with the European Space Agency (ESA). E-mobility for the fleet More and more fleet operators are thinking about switching to electric vehicles due to a number of factors, including the risk of driving bans on diesel vehicles in city centres. BayWa’s fleet analysis supports by developing practica- ble concepts designed to help determine what is feasible and appropriate depending on the situation. To do so, it starts by analysing all rel- evant fleet data, such as the number of kilo- metres driven, the speed of travel, the amount of fuel consumed and the length of time vehi- cles spend parked. Based on this information, BayWa’s experts formulate suggestions as to whether – and to what extent – switching to electric cars makes sense and recommend the most suitable charging infrastructure. Once the fleet customer is on board, BayWa implements the concept down to the last detail, by select- ing and purchasing vehicles as well as by planning and installing charging infrastructure. BayWa also identifies and applies for appropri- ate subsidies and funding. Individual solutions, such as charging infrastructure that has been tailored to fit the customer’s needs, are also possible. To simplify and facilitate the switch to electric company vehicles, BayWa has partnered with Berlin-based ubitricity GmbH to provide smart charging cables. The SmartCable is equipped with a built-in, calibrated electricity meter, allowing drivers to keep separate consumption and billing records for power used for vehicle charging at home or at work. ECharge it: 8,000 charging stations in Germany accept the BayWa filling station card. The hybrid card is also accepted at 2,500 filling stations. Helpers from space Satellite data generated as part of the Europe- an Earth Observation Programme Copernicus are available to everyone worldwide. The BayWa subsidiaries FarmFacts and VISTA use this data as raw material to create TalkingFields base maps, which provide precise information about the differences within a field, allowing farmers to individually adjust sowing, fertilisa- tion and watering for each section of land. With VariableRain, BayWa provides a satel- lite-based solution designed to help farmers accurately meet the water requirements of their crops. Following the successful conclusion of a two- year pilot project in Zambia, resulting in up to 25% higher wheat yields along with an 11% to 30% reduction in water consumption, Varia- bleRain is slated for expansion to other re- gions of the planet beginning in 2019. Satellite data also makes it possible to draw up early harvest forecasts that are significantly more accurate than in the past. BayWa sees tremendous potential in satellite data and is involved in the international Coper- nicus Masters competition by hosting the cat- egory “Smart Farming”. This category is look- ing for new approaches designed to make agriculture more efficient and sustainable with the help of remote sensing. Unity 11

Avocado boom Agriculture Segment More and more avocados for the German market: In the Agriculture Segment, BayWa covers the between 2008 and 2017, the volume imported rose from just under 20,000 tonnes to over 71,000 tonnes. entire value chain from the field to the market- ing of produce, making it one of Europe’s lead- ing 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. When it comes to agricultural equipment, BayWa covers a range of activities in these regions, from the sale of new machin- ery, maintenance and repairs, to the marketing of used machinery. The Global Produce busi- ness unit also makes the Group a leading global player in fruit and vegetable trading, allowing it to market a wide range of pome fruit, tropical fruits and other harvest-fresh fruit and vegetable products around the world. Avocados, mangos and more In 2016, BayWa expanded its position as a global player in fruit and vegetable marketing by acquiring a majority stake in Tropical Fruit Company (TFC) Holland. TFC has long-standing trade relations in global pro- curement markets for exotic fruits, as well as with the Euro- pean food retail industry. Its core products include avocados, mangos, ginger and citrus fruits. For years now, the volume of ex- otic fruit and vegetable varieties sold in Europe has seen growth rates into the double digits. By acquiring a stake in TFC, BayWa – already one of the most im- portant suppliers of pome fruit prior to the acquisition – has gained access to this market, thereby substantially increasing its significance as a partner for the European food retail indus- try. Retailers benefit from great- er reliability in terms of supply, a wide product range of exotic fruits and the opening of global procurement markets. 66% To secure the availability of avocados, TFC partnered with the non-profit South African marketing organisation Afrupro Exporters Proprietary Limited in 2018 to found Afrupro Invest- ments Proprietary Limited. The goal of the new company is to provide incentives to increase the cultivation volume of South African avocados. Producers will receive low-interest loans to in- vest in avocado trees and agri- cultural inputs, for example. In return, the farmers will supply their harvested produce to the company for marketing. share in consolidated revenues Key figures for 2018 € 11.0 bn in revenues 10,428 employees (annual average) Avocado: a tasty trend For years now, the public has had an appetite for avocados. According to the Food and Agriculture Organization of the United Nations (FAO), 5.9 million tonnes of avocados were produced in 2017 – an increase of 5.5% year on year and nearly twice the volume produced just ten years ago. The cultivation countries export roughly 2 million tonnes of avoca- dos every year. Demand is particularly high in Europe and continues to rise, with further growth of 15% expected in Europe over the next five years. The non-profit World Avocado Organization (WAO) cites growing interest in vegan diets and greater aware- ness of health and fitness as some of the reasons for the trend. The main suppliers for Europe are Peru, Chile, Israel, Mexico and South Africa. Agriculture Segment 13

Key data of the Agriculture Segment in € million Revenues EBIT Number of employees (annual average) 2014 2015 2016 2017 2018 10,105.3 10,149.5 10,884.5 10,836.6 11,015.9 107.8 9,489 90.1 9,997 70.1 82.1 100.1 10,212 10,613 10,428 Key operating data of the Agriculture Segment Sales volume in ktonnes 2014 2015 2016 2017 2018 BAST / Agri Trade & Service Grain 14,925.5 19,473.0 21,512.4 21,859.9 19,116.4 Oilseed and additional products 11,877.4 10,706.9 12,275.4 11,514.2 13,946.8 Fertilisers Seed Feedstuff Global Produce Dessert pome fruit Soft and stone fruit Tropical fruit Vegetable fruits Agricultural Equipment Number of tractors sold – new Number of tractors sold – used 2,346.9 2,479.7 2,429.4 2,414.9 2.268,5 244.1 270.0 256.8 265.5 251.6 2,450.1 2,148.5 1,632.7 2,051.3 2,639.0 194.3 236.4 205.7 256.3 260.7 22.4 54.0 17.8 21.3 58.5 18.9 25.1 81.8 19.4 14.1 58.0 20.3 17.0 59.1 15.1 4,366 1,748 3,986 1,789 3,529 1,663 3,659 1,873 4,815 1,760 Agriculture Segment BAST (BayWa Agri Supply & Trade) Global Produce International trade in produce, supply chain management Trade in fruit, cultivation and marketing of select vegetable types Agri Trade & Service Agricultural Equipment Trade in agricultural inputs, trade and recording of produce, logistics Trade in agricultural machinery, service and repairs 12 Agriculture Segment

Avocado boom More and more avocados for the German market: between 2008 and 2017, the volume imported rose from just under 20,000 tonnes to over 71,000 tonnes. Avocados, mangos and more In 2016, BayWa expanded its position as a global player in fruit and vegetable marketing by acquiring a majority stake in Tropical Fruit Company (TFC) Holland. TFC has long-standing trade relations in global pro- curement markets for exotic fruits, as well as with the Euro- pean food retail industry. Its core products include avocados, mangos, ginger and citrus fruits. For years now, the volume of ex- otic fruit and vegetable varieties sold in Europe has seen growth rates into the double digits. By acquiring a stake in TFC, BayWa – already one of the most im- portant suppliers of pome fruit prior to the acquisition – has gained access to this market, thereby substantially increasing its significance as a partner for the European food retail indus- try. Retailers benefit from great- er reliability in terms of supply, a wide product range of exotic fruits and the opening of global procurement markets. To secure the availability of avocados, TFC partnered with the non-profit South African marketing organisation Afrupro Exporters Proprietary Limited in 2018 to found Afrupro Invest- ments Proprietary Limited. The goal of the new company is to provide incentives to increase the cultivation volume of South African avocados. Producers will receive low-interest loans to in- vest in avocado trees and agri- cultural inputs, for example. In return, the farmers will supply their harvested produce to the company for marketing. Avocado: a tasty trend For years now, the public has had an appetite for avocados. According to the Food and Agriculture Organization of the United Nations (FAO), 5.9 million tonnes of avocados were produced in 2017 – an increase of 5.5% year on year and nearly twice the volume produced just ten years ago. The cultivation countries export roughly 2 million tonnes of avoca- dos every year. Demand is particularly high in Europe and continues to rise, with further growth of 15% expected in Europe over the next five years. The non-profit World Avocado Organization (WAO) cites growing interest in vegan diets and greater aware- ness of health and fitness as some of the reasons for the trend. The main suppliers for Europe are Peru, Chile, Israel, Mexico and South Africa. Agriculture Segment 13

BayWa Agri Supply & Trade The BayWa Agri Supply & Trade (BAST) business unit specialises in the international trade of grain and oilseed and covers the entire value chain from sourcing through to logistics and sales. Its customers include both local and international grain and oil mills, breweries and malt houses, as well as feed manufacturers and producers of biofuel and ethanol. BayWa is one of the largest importers of soya bean meal for the European feedstuff industry. In addition to large-volume trading in wheat, soya and corn, the company has taken targeted steps to expand its business in specialities such as starch, rice and leg- umes as well as organic products in a targeted manner: in 2016, the company took over Tracomex group, a Dutch trading group for agricultural speciality products. One year later, it acquired Premium Crops Limited, a leading British trader and supplier of niche oilseeds and grains. In 2018, through a majority stake in the Dutch specialities trader Royal Ingredients, BayWa strength- ened its product range to include starch products and derivatives, plant proteins and fibre, cereals and seeds cultivated using both conventional and organic meth- ods. Examples of the products traded by the company include chia and quinoa. Royal Ingredients supplies companies worldwide. In addition to customers from the food and animal feed sector, the speciality trader also supplies manufacturers of paper and cardboard. Through its engagement in the international specialities business, BayWa is serving the food and feed industry’s growing demand for these products. At the same time, its specialities strategy is helping diversify its product portfolio and make it even more independent of the volatilities of standard exchange-traded products. Approx. 33 m tonnes is the annual grain and oilseed trading volume at the BayWa Group. International agricultural trade activities: imports and exports pass through the company’s own inland and deep water ports. 14 Agriculture Segment

Agri Trade & Service The focus of the Agri Trade & Service business unit is the direct trading business with farmers. To this end, BayWa supplies its agricultural customers in Germany all year round with agricultural inputs that are neces- sary for agricultural production, such as seed, fertilisers and crop protection products, as well as feed and hy- giene products for livestock farming. At the same time, BayWa records agricultural produce such as grain, oilseed and hops after they are harvested and markets them to local and regional processors, as well as in export markets. Therefore, BayWa has high warehousing and logistics capacities that include a connection to the Baltic Sea at the ports in Mukran and Vierow. Every year, up to 1 million tonnes of German grain are exported through Mukran on the island of Rügen. At the Baltic Sea port of Vierow, BayWa substantially increased its storage capacities last year by opening a new fertiliser warehouse. Goods are imported by ship directly from northern and eastern Europe and distrib- uted nationwide by block train or truck, with a focus on eastern and northern Germany. The new warehouse has a floor space of 4,800 square metres and offers space for 25,000 tonnes of fertiliser. From sowing to harvest: healthy crops are the key to healthy food. Good for animals Under the “Bonimal” private brand, BayWa offers animal owners innovative feed con- cepts that help promote animal health and reduce excess nitrogen in the environment. Technical solutions make the feed easier to digest, which is healthier for animals. As a result, they lose fewer nutrients through the digestive process. At the same time, the concepts make it easier for animal owners to meet the requirements of the German Fertil- iser Ordinance (DüMV). Good absorption of feed is also influenced by high-quality drink- ing water. To promote an approach to the cleaning and disinfection of water pipes that is healthy for animals, BayWa offers a hygiene product that is also suitable for use in organic agriculture. Ultimately, clean water systems also help reduce the use of antibiotics in live- stock farming in the long term. Agriculture Segment 15

Global Produce The Global Produce business unit makes BayWa one of the leading international players in global fruit trading. Over the past few years, the acquisition of a majority stake in the New Zealand market leader T&G Global and the investment in the Dutch tropical fruit trading compa- ny TFC Holland have helped to create a global network that covers the entire fruit and vegetable marketing value chain. For BayWa’s food retail customers, this means a reliable year-round supply of fresh fruit, a wide selection of traditional and exotic fruits such as avocados and mangos, and the opening of global pro- curement markets. Fruit producers in Germany, New Zealand and other cultivation regions around the world benefit from attractive marketing opportunities and access to an exclusive variety of brands such as Jazz and Envy apples. In Germany, BayWa is the leading single seller of domestic dessert pome fruit for the food retail sector. The main recording region is the area around Lake Con- stance, where organically produced apples and pears account for around 15% of the annual harvest. Apple orchard near Lake Constance: BayWa is the leading supplier of organic pome fruit in Germany. Championing the climate Global Produce is the first business unit at the Group with entirely climate-neutral sites. Since 2016, the business unit has continu- ously reduced its CO2 emissions by switch- ing to LEDs, installing high-speed doors to prevent the loss of cold air and installing so- lar power systems for its own use. The sites operated by the Group subsidiaries T&G Global and TFC Holland are also set to fol- low suit in the medium term. Environmentally friendly packaging and approaches to reduce packaging waste in the long term are some of the additional sustainability strategies. Through its Group company T&G Global and the joint venture Al Dahra BayWa Agriculture LLC in the Unit- ed Arab Emirates, BayWa already uses to- mato packaging that is 98% free of plastic and is compostable. In its German fruit business, BayWa is also working with its partners within the value chain to explore the potential of alternative packaging materials made of substances, such as renewable raw materials. 16 Agriculture Segment

Agricultural Equipment BayWa has pooled the sale of machinery, equipment and systems for agriculture, forestry and the public sector in the Agricultural Equipment business unit. Agricultural Equipment is responsible for the sale of new and used machinery, as well as maintenance and repair services, including spare parts. Its services are provided at 260 workshops or directly on site by mobile service vehicles. Worldwide, BayWa is the largest sales partner for the AGCO Group, with its brands Fendt, Massey Ferguson, Challenger and Valtra. BayWa is also the leader in the global sale of CLAAS agricultural machinery. Its custom- ers include farms and forestry operations, as well as vineyards, fruit farmers, municipalities and commercial enterprises. The product range includes various brands of vehicles for sweeping, cleaning and winter services, as well as mowing and sporting venue technologies. Along with its bricks-and-mortar stores, BayWa operates various online platforms that bring buyers and sellers together regardless of opening times and location. www.tecparts.com sells spare parts and accessories, while www.baywaboerse.com offers owners of used agri- cultural machinery a way to sell their equipment to other private buyers. “BayWa Technic-Trader” offers the addi- tional opportunity to have used vehicles and machinery valued and sold to BayWa. Online auctions, such as the kind provided by the platform www.ab-auction.com, are also very popular internationally. One in five used machines from BayWa is sold abroad and exported to some 40 countries worldwide. Worldwide, BayWa is the largest sales partner for the AGCO Group. Award-winning stables An excellent example of agricultural architecture: In 2019, Biohof May (May organic farm) in Jun- kershausen, Germany, received the Deutscher Landbaukultur-Preis (German rural architecture prize) from the Landwirtschaftsverlag Münster foundation. The barns and stables have been de- signed as “outdoor-climate stables” that provide good indoor-air quality along with low energy con- sumption. Each building is equipped with a green roof, one of which even features a visitors’ terrace. The “BayWa Stall+Systeme” (stalls and systems) division in the German region of Franconia played a major role in the construction project. As in all of BayWa’s corporate divisions, digitalisation is also continuing to make advancements in agricultural construction. BayWa’s “Stalldesigner” allows animal owners who are wishing to build new stables to individu- ally preconfigure their desired stables, view a three- dimensional model and take a virtual tour. The software therefore makes it possible to plan individually and efficiently, particularly during the initial planning phase. Agriculture Segment 17

> € 30 bn Energy Segment Source: Verband Schmierstoff-Industrie e.V. is the estimated damage amount caused in Germany by friction and wear. These damages can be avoided by using lubricants. The Energy Segment pools BayWa’s activities involving renewable energies and the trade in conventional energy sources. Under the umbrella of BayWa r.e. renewable energy GmbH, the Renewa- ble Energies business unit covers the entire project business, from the planning, development and con- struction of wind farms and solar parks through to their sale. Services such as the technical and commercial management of plants and the mar- keting of the generated electricity on the energy market round off the range of offerings. BayWa r.e. also trades in photovoltaic components and storage technology for installers. Along with Europe and North America, BayWa r.e. is also active in the Asia-Pacific region and Australia. In its conven- tional energy business, BayWa primarily sells heat- ing oils, fuels, lubricants, AdBlue and wood pellets, mainly in its core regions of southern Germany the right operating resources for and Austria. A BayWa filling station card makes it their machinery and equipment from various brands in just one even easier to refuel at any of the company’s own step, even at short notice. filling stations and at many other filling stations in Germany or electric vehicle charging stations. Buying lubricants online Motor oils, hydraulic oils, gear oils and lubricating greases have been the big sellers on www.interlubes.de ever since it was launched in mid-2018. The online platform provides BayWa with an additional digital sales channel for lubricants, operating resources and AdBlue, an addi- tive for diesel exhaust treatment. Customers have been quick to accept the new website, with one in three users placing or- ders based on their enquiries. Key figures for 2018 € 4.0 bn in revenues Through Interlubes, BayWa of- fers business customers an op- portunity to order online from a wide selection of lubricants and operating resources, regardless of the manufacturer or brand. One advantage for customers in industry, manufacturing, the pub- lic sector, the transport sector, agriculture and forestry is that they are able to reliably purchase 2,407 employees (annual average) Unlike with conventional online shops, customers use Interlubes to post a request and receive a custom offer with price and de- livery date in less than 30 min- utes. After that, customers can place or change their orders. share in consolidated revenues 24% Interlubes currently offers all major, high-profile brands for products such as motor oil, gear oil and hydraulic oil, as well as cleaning agents, anti-corrosives and antifreeze on a single plat- form. Plans are in place to ex- pand the product range to in- clude nearly all lubricants and operating resources available on the German market, which would give the portal a selection of around 25,000 items. From lubrication to insulation While developing the first vehicles, engineers also started to notice the importance of lubricants to keep machines running smoothly. Back then, lubricants were mainly designed to help care for engines. Today, they face a wide variety of demands. As the performance of machinery increases, the lubricants have to be able to cope with ever tougher conditions. Not only do they need to provide lubri- cation, thereby minimising friction and wear, they are also expected to ensure insulation, cooling and protection from corrosion. Researchers are constantly expanding the product spectrum in order to meet all these demands. Along with mineral-oil-based lubricants, BayWa also offers a wide range of biodegradable products and specialised lubricants for use in applications such as metalworking. Energy Segment 19

Key data of the Energy Segment in € million Revenues EBIT Number of employees (annual average) 2014 2015 2016 2017 2018 3,489.0 3,264.2 2,976.0 3,594.8 3,968.5 42.3 1,830 77.2 1,825 83.1 1,911 85.0 96.0 2,079 2,407 Key operating data of the Energy Sales volume in ktonnes 2014 2015 2016 2017 2018 Conventional Energy Heating oil Fuels Lubricants Wood pellets Number of fuel stations BayWa r.e. renewable energy Wind, realised output capacity1 in MW Wind, sold output capacity2 in MW Solar, realised output capacity1 in MW Solar, sold output capacity2 in MW Biogas, realised output capacity1 in MW Biogas, sold output capacity2 in MW PV module trading, sold output capacity in MWp Biomethane, sold output capacity in GWh Geothermal energy, sold output capacity2 in MW 1,021.5 1,047.0 1,013.9 1,024.9 936.0 1,459.9 1,466.0 1,477.5 1,499.0 1,690.9 25.9 310.8 279 72.9 79.2 91.0 128.3 3.2 3.2 27.1 359.5 278 205.2 164.2 86.6 123.1 3.1 – 25.6 401.3 272 121.1 89.2 141.3 123.7 2.6 – 27.1 26.4 457.6 464.1 279 281 182.6 260.2 222.3 147.7 – 6.6 61.9 116.2 153.3 324.0 – 12.3 206.4 245.6 272.3 425.4 544.1 1,550.0 1,280.0 – – 11.0 – – 1 Realised output capacity: commissioning of turbines or plants in the respective financial year 2 Sold output capacity: sale of turbines or plants in the respective financial year Energy Segment Conventional Energy Renewable Energies* • Liquid fuels • Filling stations/mobility solutions • Lubricants • Wood pellets • Contracting • Wind energy • Solar energy • Bioenergy • PV trading • Energy trading * Activities pooled in BayWa r.e. renewable energy GmbH 18 Energy Segment

> € 30 bn is the estimated damage amount caused in Germany by friction and wear. These damages can be avoided by using lubricants. Source: Verband Schmierstoff-Industrie e.V. Buying lubricants online Motor oils, hydraulic oils, gear oils and lubricating greases have been the big sellers on www.interlubes.de ever since it was launched in mid-2018. The online platform provides BayWa with an additional digital sales channel for lubricants, operating resources and AdBlue, an addi- tive for diesel exhaust treatment. Customers have been quick to accept the new website, with one in three users placing or- ders based on their enquiries. Through Interlubes, BayWa of- fers business customers an op- portunity to order online from a wide selection of lubricants and operating resources, regardless of the manufacturer or brand. One advantage for customers in industry, manufacturing, the pub- lic sector, the transport sector, agriculture and forestry is that they are able to reliably purchase the right operating resources for their machinery and equipment from various brands in just one step, even at short notice. Unlike with conventional online shops, customers use Interlubes to post a request and receive a custom offer with price and de- livery date in less than 30 min- utes. After that, customers can place or change their orders. Interlubes currently offers all major, high-profile brands for products such as motor oil, gear oil and hydraulic oil, as well as cleaning agents, anti-corrosives and antifreeze on a single plat- form. Plans are in place to ex- pand the product range to in- clude nearly all lubricants and operating resources available on the German market, which would give the portal a selection of around 25,000 items. From lubrication to insulation While developing the first vehicles, engineers also started to notice the importance of lubricants to keep machines running smoothly. Back then, lubricants were mainly designed to help care for engines. Today, they face a wide variety of demands. As the performance of machinery increases, the lubricants have to be able to cope with ever tougher conditions. Not only do they need to provide lubri- cation, thereby minimising friction and wear, they are also expected to ensure insulation, cooling and protection from corrosion. Researchers are constantly expanding the product spectrum in order to meet all these demands. Along with mineral-oil-based lubricants, BayWa also offers a wide range of biodegradable products and specialised lubricants for use in applications such as metalworking. Energy Segment 19

Renewable Energies BayWa r.e. renewable energy GmbH pools the activities of the Renewable Energies business unit, which are cur- rently undergoing successful international expansion. Around the world, BayWa r.e. is helping further the use of renewable energies. Together with its partners, it is working to make the energy transition a success. As a full-service partner, BayWa r.e. is able to build on more than 25 years of market experience in renewable energies. The subsidiary has already put plants with more than 2.5 gigawatts (GW) in output into service and is in charge of managing over 5.7 GW in output capacity. At the same time, BayWa r.e. markets the electricity pro- duction of 3.5 GW in installed output capacity to energy markets, making it an internationally recognised partner in this field. The latest developments provide impressive proof of this role: in 2018, BayWa r.e. sold a total of 19 re- newable energy projects with a total output capacity of approximately 450 megawatts (MW). Among them was the Don Rodrigo solar power plant in Spain. With an out- put of roughly 175 MW, Don Rodrigo is the largest solar park built by BayWa r.e. to date. Additional plants were sold in the US (48 MW), France (41 MW), the Nether- lands (31 MW) and the United Kingdom (30 MW). Wind power plants were sold in the United Kingdom (19 MW), Germany (16 MW) and France (10 MW). More clean energy worldwide BayWa r.e. continued taking decisive steps towards fur- ther success in international business in 2018. In the Netherlands, for example, it took over roughly 2 GW of a project pipeline overseen by GroenLeven Group, secur- ing it an important position among the world’s ten lead- ing project developers in the field of solar energy. In the From planning to operations manage- ment, BayWa r.e. is driving the expansion of wind power worldwide. 20 Energy Segment

With an output of roughly 175 MW, Don Rodrigo – near Seville, Spain – is BayWa r.e.’s largest solar park to date. trading business, Mexico’s largest trader of solar compo- nents joined forces with the company, giving BayWa r.e. an opportunity to position itself on one of the fastest- growing solar markets in the world. BayWa’s activities in the Asia-Pacific region are also in- creasingly gaining momentum. As a result, the compa- ny’s Renewable Energies business unit is well positioned in the new growth markets, with the Asia-Pacific region forecast to see the largest growth in wind and solar ener- gy worldwide. A second control centre for the monitoring and maintenance of wind and solar power plants opened in Bangkok in 2018. Together with the existing control centre in Munich, it contributes to ensure that every plant operates as efficiently as possible at all times, no matter where in the world it is. In the Asia-Pacific region, BayWa r.e. has already installed its first plants that provide 25 MW of solar output capacity, with 200 MW from wind and solar energies in construction and a further 400 MW in wind and photovoltaic power plants in development, half of them in Japan. The solar component market is also growing rapidly, especially in Australia and Thailand. Focusing on the energy transition Since 2015, BayWa r.e. has regularly published Energy Reports highlighting the use of renewa- ble energies. While the first two surveys looked at private households and businesses in Ger- many, the most recent study focused on 1,200 energy decision-makers at medium-sized and large enterprises in the United Kingdom, Germany, Italy, Spain, France and Poland. The Energy Report 2019 presents the findings of this first-ever systematic and quantitative opinion poll. It provides insights into what businesses think about the energy transition and the latest energy policy issues while taking a look at companies’ sustainability goals and their investments in renewable energies. The Energy Report will be available from May onwards at: www.baywa-re.de/en/energy-report-2019/ 92% of the companies surveyed invest in renewable energies to reduce their energy costs. 55% have set firm targets when it comes to reducing greenhouse gas emissions, increasing energy efficiency or using renewable energies. The most important goal at the companies surveyed: 66% want to increase the use of renewable energies. 89% believe that companies play a leading role in the energy transition. Energy Segment 21

Tops in wholesale BayWa r.e. has been named Top PV Wholesale Supplier 2019 for the quality of its business activities in the German, Italian, Belgian, Dutch, Swiss and Australian PV trading market. The award recognises the company’s close and trusting relationship with installers and reflects a high rate of customer satisfaction. The selection is based on a worldwide customer satisfaction survey of PV in- stallers and consumers. Along with the breadth and quality of the product range, the market and opinion research institu- tion EuPD research looks at aspects such as customer loyalty. The seal therefore serves as an independent confirmation of quality for companies with particularly high rates of customer satisfaction. On account of its above-average performance in the European market, the company was also named Top PV Wholesale Supplier Europe for the second time. which was developed by the company. The tool helps operators affected by the end of funding for wind tur- bines under the Renewable Energy Sources Act (EEG) in Germany in 2021 decide whether operating their power generation systems is still worthwhile. The online tool can be used to simulate a variety of different scenarios, such as continued operations, repowering or dismantling or selling of an old plant. To start the calculations, opera- tors enter key data about their plants, such as technical output and income data, as well as lease, maintenance and operating costs. WindGuide 20+ then provides an overview of how profitable the various options are. Prospects through knowledge Sharing experience and knowledge is another way BayWa r.e. is helping encourage the use of renewable energies around the world. In Zambia, for example, BayWa r.e. connected a solar park with an output capacity of 1 MW to the grid in early 2018. The largest photovoltaic plant to date in this southern African country was built in cooperation with GIZ (Deutsche Gesellschaft für Interna- tionale Zusammenarbeit – German Cooperation for International Cooperation) and the German AHK (Cham- bers of Commerce Abroad). The solar park is owned by Copperbelt Energy Cooperation, a local energy provider. What makes this project special is a one-of-a-kind train- ing programme that prepared local employees of the energy provider to operate the plant without further support from abroad after just a short period of familiari- sation. BayWa r.e. plans to make use of this knowledge transfer in other planned projects in the region. The German renewable energy market is also benefiting from BayWa r.e.’s expertise. One example of the efforts to share knowledge is the WindGuide 20+ online tool, 22 Energy Segment

Conventional Energy From heating oil for mountain huts to 24/7 petrol stations, BayWa reliably supplies rural regions with fuels – even remotest areas. Along with its traditional range of heating oil, wood pellets, lubricants and fuels, it also offers innovative products and services. BayWa’s innovative products include premium wood pellets sourced from sustainable forestry operations or climate-neutral heating oil and diesel, where the CO2 emitted during combustion is offset by purchasing car- bon credits. The company also offers “BayWa ecoclean plus”, an innovative new heating oil with additives that combusts efficiently, thereby preventing the generation of carbon black, increasing the efficiency of heating systems and reducing maintenance costs. The “BayWa OilFox”, a digital fill-level indicator that uses an app to provide information about consumption and fill levels as well as helps to ensure fast reordering, has proven to be particularly useful. Through its new products, BayWa is meeting the rising demands and offering an appealing selection for all its customer groups, such as farms and private households, as well as business people, local authorities and retailers. The BayWa filling station card, which enables users to fuel up without cash around the clock, has been met with tremendous acceptance. The card can be used at the roughly 100 company-operated filling stations and at more than 2,500 partner filling stations across Germany. BayWa is also keeping up when it comes to electromobility. Thanks to partnerships with renowned providers, customers can use the BayWa filling station card at about 8,000 charging stations throughout Ger- many to fill up on electricity. Across Europe, drivers can even take advantage of 35,000 charging points. BayWa plans to construct its own quick charging stations at selected locations. 30 charging points for the compa- ny’s own electric cars and the electric cars owned by employees are already available at BayWa Group head- quarters. The range of digital solutions is also growing: the free BayWa filling station app (www.baywa- tankstellen.de) guides drivers to the nearest BayWa filling station, partner filling station or charging point. The app also makes it possible to manage petrol receipts by e-mail, helping users maintain an overview of their entire filling history. BayWa Energie Dienstleistungs GmbH is dedicated to advancing the company’s system business, which includes the provision of energy for buildings through the construction, operation and maintenance of heating systems and by supplying fuels. In 2018, for example, BayWa took over as the operator of a biomass heating plant to provide local heating for the Kraillinger Innova- tions Meile industrial estate, with its 56 companies. The 20-year contract also provides for the renovation and expansion of the heating plant during ongoing oper- ations without restrictions on the supply of heat. Conventional Energy increasingly offers alternative products, such as “BayWa ecoclean plus” heating oil. Energy Segment 23

More efficient project management Model-based planning Building Materials Segment Cost certainty BIM (building information Optimised processes modeling) Data quality Reliable planning Digital from A to Z The Building Materials Segment covers the entire range of products and solutions for build- ing materials – from civil engineering, structural engineering, construction, renovations, modern- isation, gardening and landscaping, to solution packages for energy efficiency and healthy build- ing. This range of products is aimed at construc- tion companies, municipalities, trades and com- mercial enterprises, as well as renovators and private individuals building their own homes. In addition to this, BayWa also provides customers with a variety of services, as well as expertise and support when it comes to innovative topics such as healthy construction and Efficiency House Plus. Digital offerings are increasingly bolstering traditional business by providing fresh momen- tum 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 trade. Germany’s first community of detached houses designed and constructed using building information modeling (BIM) is currently being built in Borna, a town near Leipzig. BayWa is acting as the project partner. All aspects of the “Wohnen am Lerchenberg” (Lerchenberg residences) project are fully digital, from sale and planning through to construction (wohnen-am-lerchenberg.de). involving the site, living space, roofing, doors, windows, techni- cal components and design fea- tures is reflected directly both in the 3D model and in the current price in real time, making this the only system of its kind. Key figures for 2018 A partnership with a local bank also makes it possible to take financing into account and display the monthly fixed loan instalment along with the select- ed features. All price information is binding. Thanks to this bindingness and the wide range of options that can be tried out, the digital planning process offers a degree of realism and quality that the conventional purchasing and planning process is unable to provide. 10% share in consolidated revenues € 1.6 bn in revenues The “Mr+Mrs Homes” property configurator provides the basis for the project. Developed by BayWa and its Group company PURE Applikationen GmbH & Co. KG, the digital platform digi- talises the entire construction project from the very start, revo- lutionising virtually every step of the process. A 3D house model that buyers can use to design their future homes down to the very last detail is at the heart of the concept. Every change 4,211 employees (annual average) Digital twin BIM is a digital method of optimising planning pro- cesses in construction that involves everyone, from planning and execution to the management and dismantling of a building. The detailed and accurate 3D model, also known as a “digital twin”, provides the basis for data collection and contains all data used in the project throughout a building’s construction. As a result, the data can be used to derive the full range of project documen- tation, such as plans, docu- ments for notary meetings and additional information, including quantities, static calculations and construc- tion schedules. Building with BIM makes planning more reliable and ensures total transparency when it comes to costs, lean processes and credible construction timing. Building Materials Segment 25

Key data of the Building Materials Segment in € million Revenues EBIT Number of employees (annual average) 2014 2015 2016 2017 2018 1,524.8 1,496.4 1,530.1 1,606.1 1,617.5 28.0 4,178 27.4 4,093 28.5 4,081 30.1 31.1 4,113 4,211 Key operating data of the Building Materials Segment 2014 2015 2016 2017 2018 Building Materials Number of locations (including Austrian markets) 226 221 202 199 200 Surface area in k m2 (all locations) 2,110.3 2,030.0 1,682.1 1,669.8 1,687 Building Materials Segment Building Materials • Civil engineering, extensions, construction, building services • Package solutions • Systems solutions and services for energy efficiency and healthy housing • Digital services (online portal for building materials, BayWa room designer, “Mr+Mrs Homes”) 24 Building Materials Segment

More efficient project management Model-based planning Cost certainty Optimised processes BIM (building information modeling) Reliable planning Data quality Digital from A to Z involving the site, living space, roofing, doors, windows, techni- cal components and design fea- tures is reflected directly both in the 3D model and in the current price in real time, making this the only system of its kind. A partnership with a local bank also makes it possible to take financing into account and display the monthly fixed loan instalment along with the select- ed features. All price information is binding. Thanks to this bindingness and the wide range of options that can be tried out, the digital planning process offers a degree of realism and quality that the conventional purchasing and planning process is unable to provide. Germany’s first community of detached houses designed and constructed using building information modeling (BIM) is currently being built in Borna, a town near Leipzig. BayWa is acting as the project partner. All aspects of the “Wohnen am Lerchenberg” (Lerchenberg residences) project are fully digital, from sale and planning through to construction (wohnen-am-lerchenberg.de). The “Mr+Mrs Homes” property configurator provides the basis for the project. Developed by BayWa and its Group company PURE Applikationen GmbH & Co. KG, the digital platform digi- talises the entire construction project from the very start, revo- lutionising virtually every step of the process. A 3D house model that buyers can use to design their future homes down to the very last detail is at the heart of the concept. Every change Digital twin BIM is a digital method of optimising planning pro- cesses in construction that involves everyone, from planning and execution to the management and dismantling of a building. The detailed and accurate 3D model, also known as a “digital twin”, provides the basis for data collection and contains all data used in the project throughout a building’s construction. As a result, the data can be used to derive the full range of project documen- tation, such as plans, docu- ments for notary meetings and additional information, including quantities, static calculations and construc- tion schedules. Building with BIM makes planning more reliable and ensures total transparency when it comes to costs, lean processes and credible construction timing. Building Materials Segment 25

being constantly optimised in a series of modernisation measures. BayWa launches new products and, with its brand “Zuhause von BayWa Baustoffe”, it is pooling its expertise in the window, flooring and door product ranges in order to deliberately cater to the current trend for having high quality at home. BayWa’s traditional bricks-and-mortar business is being increasingly strengthened by customer-focused online offerings that optimise processes and provide additional service, the best example of which is the BayWa Build- ing Materials Online portal, where customers can con- veniently order building materials from anywhere 24/7. Professional customers who use the digital platform (www.baywa-baustoffe.de) to make their purchases can individualise processes to fit their needs, starting with custom ordering options and practical applications, Building Materials Low mortgage rates for the foreseeable future, an urgent need for housing in urban centres and a trend towards buying real estate as a retirement investment are all positive signals for the construction sector. BayWa is taking advantage of this positive trend. In its Building Materials business unit, BayWa is strengthening its traditional trade role by specialising and developing its expertise as a provider of innovative products and services. In its core regions of southern Germany and Austria, BayWa is one of the leading com- panies in the building materials trade for commercial and private customers. It has established itself on the market as a multi-specialist by providing integrated solutions. Its range of products and services stretches from building shells to modernisation, from basements to roofs, from planning to maintenance, right up to sys- tem solutions. Services in the field of building services engineering round off this spectrum. BayWa’s Building Materials business unit is a pioneer and sets standards when it comes to topics of the future such as healthy building, energy efficiency and building information modeling (BIM). BayWa is close to its customers. With over 120 locations in Germany and around 30 in Austria, BayWa has a high-performing, efficient network of locations that is Logistics is one of BayWa’s core competences. 26 Building Materials Segment

such as user management or project-related invoice management, and ending with logistics that offer maxi- mum flexibility. All customers need to do is select their preferred site, search for their desired product range and check stocks as well as prices in real time before making their purchase online at the individually agreed terms and picking up their orders. This convenient service is made possible by linking bricks-and-mortar retail with the digital sales channel. To this end, BayWa sites are connected to the online portal as digital locations and can be selected as pick-up locations by scanning product availability, eliminating waiting times and journeys that end empty-handed. Through practical concepts, BayWa is helping solve the challenges of the construction sector. BayWa is taking a multi-pronged approach to the important issue of healthy building, for example. Its product database pro- vides an overview of 6,000 products from a wide range of manufacturers and brands that have been tested for toxic substances and are suitable for preventing the pollution of indoor air with toxins. Predefined, publicly accessible criteria are used to decide whether a product is added to the database and receives the associated BayWa BauGesund seal, which recognises products that have passed a strict control and testing process and have been proven to have low emissions, making them healthy for use in buildings. Low-emission building materials are relevant because building shells are being constructed ever denser to ensure energy efficiency, increasing the concentration of toxins in indoor air. The seal makes it easier for planners, architects, contractors and clients to identify low-emission building materials. In doing so, the BayWa Building Materials business unit upholds its commitment to greater transparency and is paving the way for healthy building and modernisation. Because specialised expertise plays a pivotal role in the search for the most economical and lowest-emission solution, specially trained experts are also on hand to provide support through individually designed concepts. Both the selection of building materials engineered for healthy living and the mix of the materials used as well as their proper handling and installation are essential. BayWa’s additional services in the field of healthy build- ing include project support, investigating contamination in existing buildings, drawing up lists of building mate- rials, indoor air testing and certification. Background information and tips on healthy building are available at www.gesund-bauen-und-wohnen.de. BayWa was instrumental in the conceptualisation of Germany’s first Efficiency House Plus colony, a community of energy-efficient houses built to provide healthy living spaces. The nine detached and four semi-detached houses – built according to the Effi- ciency House Plus criteria set out by the former German Federal Ministry for the Environment, Nature Conserva- tion, Building and Nuclear Safety (BMUB) – produce more energy than their residents consume on average per year during their day-to-day lives. In-house energy monitoring ensures the optimal use of the photovoltaic electricity yields. The colony is a prime example of an energy-efficient yet economic design that promotes healthy housing. Tools that pack a punch For medium-sized contractors and smaller craft enterprises to be seen today, they have to show what they are capable of and maintain a digital presence that people can find. To support the regional building trade in going digital, BayWa has developed a special package of marketing services known as the “BayWa Werbewerkzeug” (BayWa advertising tool). The most important marketing tool is a company’s website. Using an online ques- tionnaire (www.baywa-werbewerkzeug.de), the customer provides information about the trade it specialises in, its services and what it expects from its website. Within a few days, the customer receives a custom- ised, ready-to-go website in line with data protection regulations that it can subse- quently administer and update itself. The website is technologically up to the minute and is optimised for all devices. In addition to custom websites, BayWa plans to offer its commercial customers other BayWa advertising tools in the near future, such as customisable promotional merchandise, work clothes and other company apparel, vehicle graphics, adver- tisements and office equipment, as well as banners for construction sites, site fences and scaffolding. Customers will be able to easily access all advertising materials for regional marketing from a central online platform. Building Materials Segment 27

Agriculture sees digitalisation as an opportunity Farmers were asked: “Do you see digitalisation more as an opportunity or as a risk for your business?” Here is how they answered. Innovation & Digitalisation Segment 19% No influence 66% Opportunity 13% Risk Source: Representative survey of farms carried out by Bitkom Research on the digitalisation of agriculture in Germany in 2016 With its own development segment, Innovation & Digitalisation, BayWa is both keeping pace with momentum in this field and underscoring the strategic importance of innovative developments for the entire company. This segment pools dig- ital activities, as well as innovation programmes and initiatives. The focus is currently on projects in the fields of Digital Farming and eBusiness, along with a wide range of support options for start-ups. Digital Farming is geared towards the development and marketing of digital agricultural solutions, thereby offering farmers new oppor- tunities to optimise operating processes and allowing them to work more cost-efficiently and sustainably. In eBusiness, the focus is on further advancing and optimising digital service offerings such as online purchasing or advice apps. Communication, regardless of the manufacturer tural inputs applied, the dura- tion of field work and the cur- rent location of machinery. Agriculture: a pioneering sector Agriculture is leading the way in the use of auton- omous machines. For roughly 20 years now, farmers have been using GPS guidance systems on their machines. Today, the technology is standard in the industry and is featured in nearly all large tractors sold in Germany. GPS guidance systems make life easier for farmers. They help to make optimal use of agricultural inputs, thereby decreasing the impact on the environment and cutting fuel consump- tion by up to 12%. GPS data that is automatically fed into a farm management system has the potential to offer additional added value when it comes to the planning, coordination and analysis of work processes, for example. Innovation & Digitalisation Segment 29 For farmers, the lack of com- patibility between technologies and software made by different agricultural equipment manu- facturers has so far been one of the greatest barriers to invest- ing in smart farming – even more so than insufficient broad- band infrastructure. To address this situation, six respected equipment companies have joined forces to create the Agriculture Application Group (aag) and approached the BayWa subsidiary FarmFacts to develop a machine data management system that is independent of a specific manu- facturer. As a result, it no longer matters what kind of machinery and equipment farmers use. Regardless of the manufacturer, this software platform docu- ments and processes all data, such as the amount of agricul- Satellite data can also be inte- grated and consulted, allowing farmers to send the application map for site-specific fertilisation directly from their computers to machines, for example. After completing the task, the machinery automatically sends back a report on the amount of fertiliser applied, eliminating the need for subsequent manual documentation as in the past. Known as “NEXT Machine Management by aag”, the soft- ware solution will be integrated as a module into the “NEXT Farming LIVE” farm manage- ment software. Key figures for 2018 € 10.7 m in revenues 183 employees (annual average)

Key data of the Innovation & Digitalisation Segment in € million Revenues EBIT Number of employees (annual average) 2014 2015 2016 2017 2018 – – – 5.2 −2.9 97 6.0 −8.6 126 6.9 10.7 −10.8 −12.3 158 183 BayWa 4.0: Targeted Digitalisation – BayWa ideas pool – Start-ups (Agro Innova- tion Lab) – European Space Agency (ESA) Processes, logistics BayWa Portal, online portal for building materials Internal digital education Smart solutions Digital services 3 New digital business models, developing and expanding ideas 1 Digitalising the existing omni- channel business 2 Digitally developing products and services Innovation & Digitalisation Segment Digital Farming & eBusiness Development and sales of digital solutions for agriculture, BayWa Portal 28 Innovation & Digitalisation Segment

Agriculture sees digitalisation as an opportunity Farmers were asked: “Do you see digitalisation more as an opportunity or as a risk for your business?” Here is how they answered. 13% Risk 19% No influence 66% Opportunity Source: Representative survey of farms carried out by Bitkom Research on the digitalisation of agriculture in Germany in 2016 Communication, regardless of the manufacturer tural inputs applied, the dura- tion of field work and the cur- rent location of machinery. Satellite data can also be inte- grated and consulted, allowing farmers to send the application map for site-specific fertilisation directly from their computers to machines, for example. After completing the task, the machinery automatically sends back a report on the amount of fertiliser applied, eliminating the need for subsequent manual documentation as in the past. Known as “NEXT Machine Management by aag”, the soft- ware solution will be integrated as a module into the “NEXT Farming LIVE” farm manage- ment software. For farmers, the lack of com- patibility between technologies and software made by different agricultural equipment manu- facturers has so far been one of the greatest barriers to invest- ing in smart farming – even more so than insufficient broad- band infrastructure. To address this situation, six respected equipment companies have joined forces to create the Agriculture Application Group (aag) and approached the BayWa subsidiary FarmFacts to develop a machine data management system that is independent of a specific manu- facturer. As a result, it no longer matters what kind of machinery and equipment farmers use. Regardless of the manufacturer, this software platform docu- ments and processes all data, such as the amount of agricul- Agriculture: a pioneering sector Agriculture is leading the way in the use of auton- omous machines. For roughly 20 years now, farmers have been using GPS guidance systems on their machines. Today, the technology is standard in the industry and is featured in nearly all large tractors sold in Germany. GPS guidance systems make life easier for farmers. They help to make optimal use of agricultural inputs, thereby decreasing the impact on the environment and cutting fuel consump- tion by up to 12%. GPS data that is automatically fed into a farm management system has the potential to offer additional added value when it comes to the planning, coordination and analysis of work processes, for example. Innovation & Digitalisation Segment 29

Innovation & Digitalisation From GPS-guided tractors and the use of drones in crop protection to rationing animal feed by app, the growing digitalisation of agriculture is increasingly merging ma- chinery and agricultural inputs with software, sensor and satellite data. With the help of digital information, farmers can make more targeted use of fertiliser, crop protection products and water today than ever before, allowing them to work more cost-efficiently and in- crease their yields. The digitalisation of agriculture will be the key to securing the global supply of healthy, affordable food in the future while also conserving resources. According to surveys of farmers, 86% believe that digital technologies help make agricultural production more environmentally friendly. What is more, the widespread automation of documentation facilitates operational management. To this end, the BayWa sub- sidiary FarmFacts offers a modular farm management system in the form of “NEXT Farming LIVE”. The Group company VISTA GmbH specialises in satellite-based remote sensing services. As a result, BayWa has the expertise to process digital data for agriculture and make it available for practical use in the field – not only in its German home market, but also in places such as Africa. Examples include accurate local projections of nutrient and water requirements, as well as harvest forecasts. BayWa has set itself the goal of taking a leading role in the future market of digital farming as a professional farming partner worldwide – and to do so regardless of farm size or the machinery and agricultural inputs used. In order to do justice to the growing importance of online trade and retail for agriculture, BayWa plans to link analogue and digital sales channels even more closely through the use of digital technologies and the automation of existing processes. BayWa’s aim is to drive innovation. To achieve this goal, it is essential to constantly question or adapt existing business models, or to develop entirely new ones. Start- TalkingFields base map: the darker the blue, the more profitable the section of land. 30 Innovation & Digitalisation Segment

Agro Innovation Lab Since the programme started, more than 650 start-ups from about 80 countries have submitted their applications. To date, 16 start-ups have successfully completed the programme. ups play an important role in this process. With this in mind, BayWa and RWA Raiffeisen Ware Austria founded the Agro Innovation Lab in 2016 with the aim of finding outstanding agricultural innovations, supporting them and helping them gain a foothold in agriculture. As part of an acceleration programme, selected start-ups from around the world undergo a five-month project phase to further advance their business development internation- ally. In the process, they are supported by internal and external mentors, as well as by the extensive interna- tional network of BayWa and RWA. BayWa acquires a stake as an investor if an innovation is a good match for the portfolio and if the start-up wants BayWa to do so. For example, the Group acquired a stake in the start-up Bartsparts in 2018 through its subsidiary BayWa Venture GmbH. The digital trading platform www.bartsparts.de unites demand and availa- bility for slow-moving spare parts at a global level, mak- ing it possible to sell goods for agricultural equipment that are no longer in demand. Through further develop- ment, the e-commerce platform is slated to become Europe’s most modern online store for spare parts. By acquiring a stake in the Irish start-up FarmHedge, BayWa has opened up an exclusive digital sales channel in its home markets. The trading platform makes it easier for farmers and agricultural traders to buy and sell agricultural inputs and agricultural produce. Applicants’ countries of origin between 2016 and 2018 FarmHedge is to be enhanced using self-learning software as development continues in order to meet the needs of customers in an even more individually targeted manner in the future. Digital Farming worldwide Approx. USD 10 bn Currently estimated market volume >10% Annually anticipated growth rate Innovation & Digitalisation Segment 31

Practising sustainability Sustainable business success requires stable condi- tions and an intact environment. That is why it is impor- tant to maintain a balance between economic, environ- mental and social targets. As a company with cooperative roots, responsible and sustainable action has always been instrumental at BayWa. The impact of climate change does not only affect BayWa as a company, but also the people with whom it comes into con- tact, resulting in a tremendous responsibility that includes protecting the environment and the climate, ensuring occupa- tional health and safety as well as preserving human rights all the way through to the supply chain. As an international com- pany with a global footprint, BayWa has the potential to make an important contribution to limiting climate change. That is why the Group has decided to take conscious action that goes well beyond its actual corporate responsibility. Through its sustainability strategy, BayWa is addressing the global challenges and reaffirming its commitment to the United Nations’ Sustainable Development Goals. The com- pany is promoting their imple- mentation in its core segments – Agriculture, Energy and Build- ing Materials – with concrete solutions. The goal for all business divisions, employees and partners is to conserve re- sources, work in partnership, act responsibly in the market and create quality of life. In doing so, BayWa is helping create an environment that is future-proof – with the goal of creating trust, preserving solidity and embody- ing innovation. BayWa’s sustainability strategy e P r e s e r v ing resources e E r o n m ent & Climate Trust v n i f i L f o y t f i l f o y t i l a u q g n i t a e r C i l a u Q S o l i d i t y s e e y o l p m p i h s r e n t r a p n i g n i k r o I n n n ovatio E s W Marke t Sustainable business p r a c t i c e Sustainability 33

A pioneer in sustainability: the Global Produce business unit’s largest production location in Kressbronn, Germany, has been climate-neutral since 2017. The remaining German locations followed suit in 2018. BayWa’s climate strategy Climate protection is a top priority With climate change advancing and its consequences growing ever more apparent from year to year, climate protection is a top priority across all segments, busi- ness units and divisions. Agribusiness in particular is directly impacted by effects such as water shortages and soil erosion. BayWa is tackling these issues and developing innovative solutions to address them. The company always sees the challenges of the present as an opportunity for the future. Today, the Building Materials and Renewable Energies business units are already benefiting from the opportunities presented by energy efficiency and climate-friendly energy generation. On the path to climate-neutral operations The Paris Agreement under the United Nations Frame- work Convention on Climate Change and the Intergov- ernmental Panel on Climate Change (IPCC) both call for limiting global warming to well under 2 degrees. In its 2018 status report, the IPCC issued an urgent recom- mendation for limiting warming to 1.5 degrees. Through its Group-wide climate strategy, which was approved in late 2018, BayWa intends to make a contri- bution to achieving this ambitious 1.5-degree target. The core goal of the climate strategy is to reduce the Group’s own CO2 emissions attributable to energy and mobility by 22% by 2025 compared with 2017. BayWa aims to be climate-neutral by 2030. The climate strategy complies with and expands BayWa’s already 34 Sustainability established sustainability strategy. It builds on the sustainability activities to date, which are overseen by the climate working group and the sustainability steering committee. The BayWa climate strategy targets Green electricity plays a pivotal role in reducing BayWa’s CO2 emissions by 22% until 2025. To achieve this goal, the Group aims at covering 100% of its electricity needs with renewable energies by 2020. Living Unity – Acting responsibly Sustainability Report 2018 This is BayWa’s fifth sustainability report. As usual, it is only available online at www.baywa.com to promote sustainability.

At the same time, BayWa also aims to reduce its energy consumption by 22%1 by 2025 through a variety of ener- gy efficiency measures. In order to achieve the long-term goal of being climate-neutral by 2030, the remaining annual CO2 emissions will be offset through investments in regional or international climate protection projects that avoid emissions elsewhere. BayWa is also making an important contribution to the energy transition outside the company through BayWa r.e., which is building and delivering renewable energy plants with an additional 10 gigawatts of output by 2025. The electricity produced by these plants will be enough to supply roughly 6 to 7 million households. Climate-neutral business is possible When it comes to doing business in a climate-neutral manner, BayWa is already setting an example today. The Global Produce business unit’s German locations have been climate-neutral in their operations since 2018, and the company’s largest production location in Kress- bronn has even been climate-neutral since 2017. This status is primarily made possible by energy-saving measures and carbon-free energy generation. In the medium term, the concept is to be expanded to include the subsidiaries T&G Global in New Zealand and TFC Holland. BayWa r.e. renewable energy GmbH went climate-neutral for the first time in 2018 by offsetting unavoidable CO2 emissions, such as those caused by business travel, for instance. The Conventional Energy business unit offers a climate-neutral approach to doing business with customers. All CO2 emissions generated as a result of the purchase and combustion of “ecoclean klimaneutral” heating oil are offset through climate certificates. Despite a main focus on avoiding and reducing CO2 emissions, BayWa offsets emissions that cannot be further reduced or avoided by purchasing emission allowances or investing in high-impact climate protec- tion projects. In 2018, the BayWa Group offset a total of about 60.000 tonnes of CO2 by purchasing such allowances, thereby supporting projects worldwide that are efficiently and effectively reducing CO2 emissions. Climate target and additional goals The BayWa climate target for 2025 is at the heart of the strategy. Four additional targets are designed to help the Group achieve its goal. Reduction in energy use by 2025: − 22%1 Generation capacities added by 2025: + 10 GW Measures • Fleet modernisation and electrification, as well as route optimisation • Energy efficiency measures for buildings • Modernisation of heating, cooling and drying systems Climate target 2025 Percentage of electricity needs covered with renewable energies by 2020: 100% Climate neutrality by 2030: 100% Measures • Increased use of green electricity In terms of EBITDA 1 2 Base year: 2017 Measures • Construction of onshore wind farms and PV parks • Renewable energy solutions for commercial and industrial customers • Delivery of construction-site-ready solar components and systems to more than 5,800 solar installers worldwide Reduction of own greenhouse gas emissions (Scope 1 and 2) from electricity, heat, mobility and more by 22%2 by 2025 Measures • Climate-neutral Global Produce operations • Climate-neutral supply of heating oil by Conventional Energy business unit • Compensation through own climate protection projects and the purchase of high-quality emission allowances • 100% climate compensation of emissions from BayWa r.e.’s business activities Sustainability 35

The Financial Year 2018 BayWa successfully achieved its annual targets in the financial year 2018. That means all of the Group’s operating segments – Agriculture, Energy and Building Materials – increased their earnings before interest and tax (EBIT). Taken together, they were therefore able to more than compensate for the one-off income generated in the previous year. BayWa’s diversified structure proved successful once again. Key figures for 2018 € 16.6 bn revenues in 2018 € 172.4 m EBIT in 2018 Expansion carries earnings development Contribution to earnings before interest and tax (EBIT) in € million 250 200 150 100 50 0 € 9.5 bn international revenues at the Group in 2018 Expansion (companies acquired from 2009) Core area (companies consolidated in 2008) expansion share in % 2009 2010 1.9 20.8 2011 18.5 2012 30.1 2013 44.9 2014 43.6 2015 56.2 2016 54.9 2017 54.4 2018 66.1 36 The Financial Year 2018

BayWa and the Capital Market Connected to the capital market As a publicly listed stock corporation (Aktienge- sellschaft), BayWa has maintained close contact with its shareholders since its founding. The connection created in the process has grown over the years, solidified and become institutionalised within the scope of a profes- sional approach to investor relations (IR). BayWa meets all regulatory requirements and goes beyond them, always with the aim of enhancing the way people view BayWa so as to strengthen trust in the company’s performance and potential among capital market participants. Personal dialogue plays an important role in achieving this objective. In 2018, BayWa sought out dialogue with investors and intermediaries, especially at capital mar- ket conferences and roadshows, whereas special events hosted by shareholder associations served as the pri- mary means of maintaining contact with private inves- tors. The Annual General Meeting in Munich on 5 June 2018 offered all current shareholders an opportunity to enter into dialogue with the company. In addition to physical meetings, BayWa uses webcasts as part of its quarterly reporting to enable anyone interested to ac- cess discussions and presentations at any time, from anywhere. The IR team is also available for any other enquiries by e-mail or telephone. The proper points of contact can be found on the company’s website at www.baywa.com/en/investor_relations/, where pres- entations and financial reports are also available. Performance of BayWa shares The stock market year in 2018 was characterised by significant losses due to the trade conflict between the US and China, a potential reversal in interest rate policy in the euro zone and the uncertainties surrounding Brexit. After starting the year at a very high level, the German blue-chip index DAX peaked at 13,560 points in late January 2018 before posting substantial losses all the way through to the end of the year. The DAX closed at 10,559 points on 28 December 2018, having fallen approximately 18% over the course of the year. The BayWa share was unable to break free of this economic trend. Despite gaining 4.1% in 2017, the BayWa share lost 35.6% in the past financial year. Registered BayWa shares with restricted transferability traded between a high of €33.05 on 5 January 2018 and a low for the year of €19.90 on 27 December 2018. Along with the worsening situation on the stock markets, developments such as low water levels and harvest losses as a result of record-setting heat and dryness throughout the summer also had a negative effect on the share price. As a result, the share finished the year at €20.60. The average trading volume of BayWa’s registered shares with restricted transferability came in at around 22,415 shares per trading day during the reporting year, which is below the figure for 2017 of approximately 27,000 shares. The closing price for registered shares without restricted transferability at the end of 2018 was €26.80; this equates to an decrease of 22% compared with the 2017 closing price of €34.37. BayWa AG shareholder structure as at 31 December 2018 Bayerische Raiffeisen-Beteiligungs-AG 34.8% Raiffeisen Agrar Invest AG 25.0% Freefloat 40.2% The Financial Year 2018 37

Share price performance from 01/01/2018 to 31/12/2018 – sec. ident. no. 519406 in € (XETRA) Annual high 05/01/2018 33.05 35 30 25 20 15 Closing price 28/12/2018 20.60 Annual low 27/12/2018 19.90 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Long-term price performance of the BayWa share (in €)1 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 High Low 26.90 35.04 35.01 35.81 39.85 41.68 38.75 31.46 34.00 33.05 14.15 24.95 24.05 26.40 33.34 27.61 27.05 25.62 30.25 19.90 Closing price 25.16 35.04 27.30 32.60 37.76 30.62 28.40 30.79 32.07 20.60 Market capitalisation (in € million) 855.9 1,193.5 937.7 1,124.0 1,302.5 1,061.6 987.7 1,071.9 1,122.1 728.9 1 XETRA prices: registered shares with restricted transferability (sec. ident. no. 519406); market capitalisation: both classes of shares (sec. ident. no. 519400 and sec. ident. no. 519406) Positioning of the BayWa share BayWa’s registered shares with restricted transferability are traded on the regulated market on the Frankfurt and Munich stock exchanges, in the XETRA trading system, as well as OTC on the stock exchanges of Berlin, Dusseldorf, Hamburg and Stuttgart. As a share traded in the Prime Standard segment, BayWa meets the high, internationally recognised transparency obligations. Allocation of share capital BayWa’s total share capital amounts to €89,953,658.88. Liable capital increased by €320,875.52 year on year owing to the subscription of 125,342 employee shares valued at an arithmetical portion of share capital of €2.56 each. Share capital comprises 35,138,148 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 shares of 33,894,897, 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 merger proceedings. 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. Ongoing dividend policy 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 recommend to the Annual General Meeting a dividend of €0.90 per dividend-bearing share for the financial year 2018. Subject to approval by the Annual General Meeting, the payout ratio – in relation to the BayWa Group’s net income, adjusted for minority inter- est – amounts to 97.8% (2017: 79.8%). Measured against consolidated net income, the dividend payout ratio stands at 57.3% (2017: 46.7%). 38 The Financial Year 2018

Long-term dividend performance (Dividend per share in €) 1.0 0.8 0.6 0.4 0.65 0.60 0.50 0.401 0.90 0.902 0.85 0.85 0.80 0.75 2008 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 2018 Including 6-cent special dividend 1 2 Subject to approval by the Annual General Meeting of Shareholders BayWa’s financing instruments Since 2010, BayWa has been increasingly issuing bond- ed loans to finance company growth in the medium and long term. Delaying the issue of bonded loans diversifies BayWa’s financing portfolio and stabilises the maturity profile of liabilities. Furthermore, the combination of fixed and floating rates reduces the interest rate risk. In July 2018, BayWa placed a €58 million bonded loan with 15 subscribing investors exclusively through the Debtvision digital marketplace. In order to serve all in- terested investors, the originally planned amount of €50 million was topped up. The digital financing option offered by Debtvision provides direct access and exchange with the relevant investors and a high degree of transparency regarding the current status of the transaction. In total, BayWa issued bonded loans with a volume of €786 million. BayWa also uses subordinate bonds (hybrid bonds) as a financing instrument. BayWa successfully placed a sub- ordinate bond with a volume of €300 million for domes- tic and international institutional investors on the market in October 2017. The primary listing of the hybrid bond took place on 6 October 2017 at the Stuttgart Stock Exchange at a price of 102.00%. At the close of trading in 2018, the bond was listed at 101.15%. The issue proceeds served to refinance liabilities, to further strengthen the capital base and to diversify the financing portfolio, among other things. BayWa share Stock exchanges Frankfurt, Munich, XETRA Stock market segment Sec. ident. no. ISIN Share capital Number of shares Regulated Market/Prime Standard/SDAX 519406 and 519400 DE0005194062 and DE0005194005 €89,953,658.88 35,138,148 Group companies 313 Fully consolidated companies (excluding the parent company) As at 31 December 2018 The Financial Year 2018 39

Overview of the Financial Year 2018 The BayWa Group developed positively in 2018 and fully achieved all of the Group targets set for the reporting year. All three of the Group’s core operating segments increased their earnings year on year. The Agriculture Segment improved its earnings primarily as a result of measures introduced in 2017 to improve profitability. The Energy Segment topped the high level of earnings from the previous year and set a new record. Earnings continued to develop favourably in the Building Mate- rials Segment as well. Improvements in operating earnings in the segments were able to more than com- pensate for the absence of one-off income, including from the sale of the BayWa high-rise building in the previous year. The Agriculture Segment experienced diverse develop- ment in the financial year 2018. All told, revenues increased by 1.7% to €11,015.9 million. Earnings before interest and tax (EBIT) in the segment improved signifi- cantly by €18.0 million to €100.1 million due to rises in earnings in the Agricultural Equipment and BayWa Agri Supply & Trade (BAST) business units. The revenues of the BAST business unit declined by 9.1% to €5,286.8 million in the reporting year. This decline was primarily due to the transfer of grain and oilseed marketing activi- ties in Germany and those managed by the Austrian Group company RWA Raiffeisen Ware Austria Aktienge- sellschaft (RWA) to the Agri Trade & Service business unit at the start of the year and the resulting decline in handling volume in the BAST business unit. Besides the structural optimisation in the previous year, the increased volatility of agricultural commodity prices also had a positive impact on earnings, since the com- pany seized the resulting trading opportunities. The business unit’s EBIT rose significantly by €24.1 million to €31.1 million. Since 1 January 2018, the Agri Trade & Service business unit (formerly: BayWa Agricultural Sales) has encompassed the grain and oilseed market- ing activities of the BAST business unit in Germany as well as those managed by RWA, alongside the agricul- tural input business and the recording of agricultural produce. This increased revenues by 17.3% to €3,298.8 million in the reporting year. However, adjusted for this effect, revenues declined due to the fall in sales volumes in both the agricultural input and produce business on account of extreme weather conditions and extremely low harvest volumes. EBIT in the Agri Trade & Service business unit fell by €20.5 million year on year to €5.2 million. This decline in earnings was due in particular to substantial decreases in volumes and a rise in logistics costs. In the Global Produce business unit (formerly: Fruit), revenues were down marginally by 0.3% to €807.9 million. Growth abroad more than compensated for declines in Germany. EBIT in the Global Produce business unit fell by €2.2 million to €27.2 million in the reporting year. One reason for the decline was the negative impact of the trade conflict between the US and China on T&G Global Limited’s in- ternational activities. Moreover, the earnings contribu- tion from the German fruit business was lower in 2018 due to a lack of marketing volume in the first half of the year. Agricultural equipment business benefited in par- ticular from significant growth in the sale of new ma- chinery in Germany and Austria in 2018. Compared to the previous year, the Agricultural Equipment business unit saw its revenues rise by 15.9% to €1,622.4 million. EBIT in the business unit improved by a greater margin compared to revenues, rising by 83.9% to a new record of €36.6 million. In the Energy Segment, positive business development in 2018 was fuelled by both business units. Overall, revenues increased by €373.7 million year on year to €3,968.4 million. EBIT was up by 12.9% to €96.0 million – its highest level to date. In the Renewable Energies business unit, revenues increased by 12.0% to €1,530.2 million primarily as a result of a significant rise in the volume of energy trade. EBIT reached a new record high at €72.5 million. This increase was primarily due to a rise in project sales and the growth in the service business. In 2018, the conventional energy business was influ- enced by the almost consistently higher price of oil compared to 2017, which was the primary reason for revenues rising by 9.4% to €2,438.3 million. EBIT reached a new record high of € 23.5 million, up 27.0% on the previous year. This was primarily due to improved margins in the fuel business. The Building Materials Segment benefited from the ongoing boom in construction activity. Revenues rose by 0.7% to €1,617.5 million in 2018, primarily due to vol- ume factors. The segment’s EBIT rose more sharply compared to revenues, by 3.3% to €31.1 million. Above all, this was due to expansion of digital sales channels as well as positive sales development. The Innovation & Digitalisation Segment increased its revenues in the reporting year to €10.7 million. As planned, the segment recorded negative EBIT of €12.3 million due to significant investment in the development of digital farming solutions and the new BayWa Portal online platform. The BayWa Group generated total revenues of €16,625.7 million in 2018, a 3.6% increase compared to the previous year. EBIT improved by 0.6% to €172.4 million. 40 The Financial Year 2018

The consolidated net result for the year declined by 18.3% to €54.9 million due to an increase in tax on income and the rise in tax expenses caused by improve- ments in operating earnings. The Board of Management and the Supervisory Board will propose the same divi- dend distribution as the previous year, 90 cents per share, to the Annual General Meeting of Shareholders. services was expanded by linking together online and stationary sales channels through the Click & Collect function and the addition of the “Mr+Mrs Homes” property configurator as part of efforts to position the company as an integrated multi-specialist. In addition, BayWa created a seal of approval for low-pollutant building materials in 2018, the BauGesund seal. BayWa continued to pursue its strategic development in 2018: In the Agriculture Segment, the BAST business unit continued to develop its speciality strategy to ex- pand its range of products with the addition of special types of grain and services by acquiring British company Premium Crops Limited and Dutch company Royal In- gredients Group International B.V. Activities in the Agri Trade & Service business unit centred on consolidating and optimising the location network. In addition, sales were geared towards integrated solutions, and organic produce, among other things, was added to the product range. The focus of the Global Produce business unit was on expanding the range of fruit and vegetable speci- alities. In addition, the German fruit operations have been carbon-neutral since June 2018. The Agricultural Equipment business unit increased its market share in core regions thanks to targeted expansion of its product range. It also expanded its presence in the Netherlands by taking over three Van Arendonk B.V. sites as at 1 January 2019. The Energy Segment continued to expand its renewable energies activities globally as one of Europe’s largest providers. In Spain, BayWa r.e. constructed Don Rodri- go, its largest solar power plant to date with a total out- put of 174.4 megawatts (MW) and also the first to be constructed without any government subsidies at all, in 2018. In the Netherlands, BayWa r.e. acquired 70% of the shares in GroenLeven, the leading solar power plant project developer, and became one of the world’s ten largest solar project developers in early 2018. Further expansion followed in Latin America in October with the acquisition of DMSolar, the leading provider in the Mexi- can solar industry. A range of new electromobility ser- vices were introduced in the conventional energy busi- ness. Electric vehicle customers can now charge their vehicles at over 8,000 charging stations in Germany and approximately 35,000 throughout Europe using the BayWa filling station card. BayWa launched a new digital lubricant platform, Interlubes, in March 2018. In the Building Materials Segment, BayWa acquired a 90% stake in Saxony Anhalt-based Bölke Tiefbaustoffe für Ver- und Entsorgung GmbH in July 2018, strengthen- ing its civil engineering portfolio. The range of online In the Innovation & Digitalisation Segment, BayWa created the Agro Innovation Lab (AIL) together with RWA Raiffeisen Ware Austria Aktiengesellschaft (RWA). Start-ups with innovative business ideas for agriculture had the opportunity to apply for the acceleration pro- gramme organised by AIL. BayWa Venture GmbH in- vested in four start-ups in 2018 to help develop ideas into fully fledged products ready to be marketed. The BayWa Group has a well-balanced, forward-thinking business portfolio to underpin its success in the future. BayWa Group Revenues in € million EBIT in € million + 3.6% + 0.6% 16,055.1 16,625.7 2017 2018 171.3 2017 172.4 2018 The Financial Year 2018 41

Consolidated Balance Sheet as at 31 December 2018* 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 Financial liabilities and liabilities from finance leasing Other liabilities Deferred tax liabilities Current liabilities Provisions Financial liabilities and liabilities from finance leasing Other liabilities 31/12/2018 31/12/2017 2,195.3 29.0 252.6 2,476.9 1.9 2,926.0 1,981.9 120.6 5,030.4 4.2 7,511.5 2,127.7 34.7 234.5 2,396.9 1.9 2,338.8 1,631.1 105.6 4,077.4 13.7 6,488.0 31/12/2018 31/12/2017 1,389.1 1,435.5 710.0 1,047.6 97.4 219.7 2,074.7 219.9 2,243.4 1,584.4 4,047.7 723.7 1,042.3 119.1 180.6 2,065.7 227.9 1,446.9 1,312.0 2,986.8 Liabilities from non-current assets held for sale/disposal groups Total shareholders’ equity and liabilities – – 7,511.5 6,488.0 * Detailed information about BayWa AG’s business performance in 2018 is available online in the Consolidated Financial Statements 2018: www.baywa.com 42 The Financial Year 2018

Consolidated Income Statement 2018* 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 Consolidated net result for the year thereof: profit share of minority interest thereof: profit share of shareholders of the parent company EBIT EBITDA Basic earnings per share (in €) Diluted earnings per share (in €) 2018 2017 16,625.7 217.0 10.8 211.3 16,055.1 −101.0 8.2 206.9 −15,175.7 −14,384.3 1,889.1 −990.6 −142.9 −599.0 156.6 9.0 6.8 12.0 −91.8 −64.0 92.6 −37.7 54.9 22.6 32.3 172.4 315.3 0.92 0.92 1,784.9 −936.2 −147.2 −570.1 131.4 2.5 37.4 7.6 −76.5 −29.0 102.4 −35.2 67.2 27.9 39.3 171.3 318.4 1.13 1.13 * Detailed information about BayWa AG’s business performance in 2018 is available online in the Consolidated Financial Statements 2018: www.baywa.com The Financial Year 2018 43

Giving back and making a difference through education projects The BayWa Founda- tion is doing its part to help meet the United Nations Sustainability Goals. Through educa- tion projects focusing : • Good Health and Well-Being • Quality Education • Affordable and Clean Energy • Climate Action • Life on Land Business and commitment to society go hand in hand at BayWa. For more than 20 years now, the company has been living up to its social and environmental responsibility through the BayWa Foundation. BayWa AG fully covers the administrative costs and doubles all do- nations. As a result, 200% of the money the foundation receives goes directly to- wards the projects that it funds. The foundation’s work focuses on educa- tional projects to promote healthy eating and renewable energies. As part of the nutri- tional education programme “Planting vege- tables. Harvesting health.”, schoolchildren plant their own vegetables and use the text and activity book “Der Ernährungskompass” (the nutrition compass; in German only) to learn all about nutrients. A total of 130 school gardens have already been planted, with almost 10,000 children taking part. Some 1,200 primary schools in Bavaria received “Der Ernährungskompass” free of charge in 2018. The “Die Waldschule” (forest school) pro- ject promotes environmental awareness and encourages children to learn more about the forest ecosystem. During an outing, chil- dren have an opportunity to plant their own trees – for many, an unforgettable experience. Every year, the BayWa Founda- tion supports 150 students by providing the “Deutschlandstipendium” (Germany Scholarship) programme. In 2018, the BayWa Foundation’s projects helped more than 80,000 children and young people in Germany build a solid fundament for their future. The BayWa Foundation also maintains an international presence. Since 2010, a biogas project in Tanzania has been showing locals how they can generate clean energy for cooking using biogas, creating long-term prospects through new jobs. The BayWa Foundation is also active in Zambia, where it provides young mothers in need with educa- tion and thus creates opportunities for them to lead independent, self-determined lives. www.baywastiftung.de/en Support us with your donation. Donations account: BayWa Stiftung DZ Bank AG Niederlassung München IBAN: DE16701600000000555444 BIC: GENODEFF701 44 The BayWa Foundation

More BayWa online: BayWa Company Brochure Solutions unite www.baywa.com/en/press BayWa Consolidated Financial Statements 2018 www.baywa.com/en/investor_relations BayWa Sustainability Report 2018 www.baywa.com/en/sustainability Imprint Project management and coordination/Text Printing BayWa AG, Munich BluePrintAG, Munich PR/Corporate Communications/Public Affairs Investor Relations For more information please contact BayWa AG Translation PR/Corporate Communications/Public Affairs lennon.de Language Services, Münster Arabellastr. 4 Concept and design 81925 Munich, Germany Telephone +49 89 9222-3691 trurnit Publishers GmbH, Annett Both Telefax +49 89 9212-3691 www.trurnit.de E-mail prcc@baywa.de Coyright credits BayWa website: AGCO (p. 17), AIR2GROUND – Daniel Possner www.baywa.com (p. 21), BayWa AG (pp. 9, 16, 23, 26, 29, 34), BayWa r.e. (pp. 8, 18), Biohof May (p. 17), Caiaimage/Trevor © BayWa AG, Munich Adeline (p. 24), Cefetra (p. 14), Christian Frumolt (p. 22), Daniel Bosma (cover/back cover), Farm- Language versions Facts (p. 30), franckreporter (p. 20), intracare bv The publication is available in German and English. (p. 15), Jan Roeder (pp. 10, 11), joloei (p. 13), kadmy Only the German version is legally binding. (p. 19), Klaus Haag (pp. 1, 5, 44), Lisa5201 (p. 32), Both versions can be viewed/downloaded from the Manicxs – Studio for Visual Communication (p. 28), company’s website at www.baywa.com. Peter Neusser (p. 4), PURE Applikationen (p. 25), Simon Koy (p. 34), Simon Lehmann (p. 15), USGS/ESA (p. 11), Tytia Habing/Offset.com (p. 12) climate neutral printing PK-DE-00681