BayWa

Capital Market Day 2015

Prof. Klaus Josef Lutz, CEOBerlin, 16/01/2015

Agenda

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1. Review 2014

2. Agri Trading

3. Fruit Trading

4. Next steps

5. Digitalization

Review

2014

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Review2013/2014

Major Achievements

CORPORATE Internationalization of BayWa‘s core businesses Successful launch of a group wide Ecommerce platform

Continuous dividend increase

Successful placement of a bonded loan (EUR 383m)

Positioning of BayWa brand (FCBB)

AGRICULTURE Growth and development new agri markets in Europe (trading and input business)

Acquisitions: Bohnhorst, Apollo; JVs with Unifrutti and Agrimec Sale of RKW Süd

Restructuring the German fruit business

ENERGY Acquisitions Martifer US & HS Kraft

Value chain add-on through new services (Beegy)

BUILDING Restructuring the Building Materials unit (staff reductions)

Transfer of deficit locations in NRW & RP activities

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ReviewBusiness Segments

Challenges 2014

AGRICULTURE 2nd record harvest in a row world wide

Grain price development; Import ban in Russia

Lack of trading opportunities due to reticence among market players

ENERGY Multi-year lows of crude & heating oil prices

Renewables: regulations in the Spanish market

BUILDING Economic tailwind in Germany and favorable weather conditions Construction companies and craftsmen reaching capacity limit

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ReviewVolatility of commodity markets

The Crimea conflict lead to significantly higherprices in February; combined with ideal weatherand growing conditions around the world, thisresulted in near-record crops and a furtherbuilding up of stocks

As a consequence, prices dropped to 4-year lowsbetween May and October 2014, supported by thehuge decline in crude oil prices and the strengthof the US-Dollar

The hesitance of farmers to sell and customers’slow buying activities restricted BayWa’smarketing and trading activities during Q3

This changed mid-October due to concerns overcrop prospects for 2015 and Russian restrictionson wheat exports

Towards year-end, more trading opportunitiesemerged and were realized throughout the group

2014 was an exceptional year for grains and oilseeds

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Segment insights & highlights

Agri Trading

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Segment insights & highlightsDevelopment of a group wide agri strategy

(1) Extend agri services & sourcingin European markets

(2) Diversify product portfoliowith specialties and services (opportunistic)

(4) Define structure, roles & responsibilitiesthat ensures strategy execution and efficiency

Strategic Impacts

(3) Augment portfolio with global reachin key sourcing and key destinations markets

1

2

3

4

The European Agri Service, Supply &Trade Company, with a global reach

Active in agriculture businesses,operating internationally, with a long termfocus, fostering excellent relationshipswith its partners

Vision

Mission

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Segment insights & highlightsImplementation of the group wide agri strategy

BayWa Agro Polska:Launch of input business

Poland

Cefetra SpA:Italian trading company dedicatedto supply and to service

Italy

Cefetra Iberica SL:Development of Spanish tradingcompany dedicated to thecustomer supply and agri-servicesbusiness

Spain / Portugal

Danube region:Evaluation of key European sourcingregions: options to expand existingmarket position and gain access to newmarkets and major ports

Hungary, Romania,Serbia, Bulgaria

BayWa Agrarhandel:Option to extendport infrastructure

Germany

Further expansion of CEEactivities via RWA

Romania

Croatia

BMTI –BayWa Marketing andTrading International

Establishment of an InternationalTrading Desk: Group Portfolio Analysis Global Portfolio Optimization Book Physical Market Trading

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Cefetra SpA

Segment insights & highlightsClose-up: new business activities

Deficit region

Business Model: Distribution of proteins and grainsacross Italy and surroundingmarkets; reliance on freight programsand global reach for sourcing

NewCo: Cefetra SpA

Division: BayWa Agrar International

Headquarters: Rome, Italy

Deficit region

Business Model: Import, distribution and export ofgrains and proteins across Spain &Portugal. Own sourcing capabilitiesas well as sourcing via the group.Some local origination/sourcing.

NewCo: Cefetra Iberica SL

Division: BayWa Agrar International

Headquarters: Madrid, Spain

Cefetra Iberica SL

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BayWa Marketing andTrading International (BMTI)

Segment insights & highlightsClose-up: new business activities

Business Model: Within the BayWa Agrar Groupmonetizing profitable trading oppor-tunities created by the company’sdiverse portfolio and improving thegroup’s global reach in the world ofAgricultural products.

Organization: Business Unit ofBayWa Agrar International

Headquarters: Rotterdam, Netherlands

Business Model: Build-up of “direct-to-farmer”-business:Sales and distribution of inputs (seed,fertilizer, crop protection) in Polandusing BayWas strong supplying power.

NewCo: BayWa Agro Polska Sp. z o.o.

Division: BayWa AG

Headquarters: Warsaw, Poland

BayWa Agro Polska Sp. z o.o.

Ø Production 2002-2013:26,7 mil. tons grain p.a.

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Segment insights & highlightsExpected volume development Agri Trading

mtons

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* including RWA

Segment insights & highlightsDevelopment of EBIT-Margins 2010 – Q3/2014

1.0 – 1.9 %Ø 1.6 %

high

1.6 – 6.2 %Ø 3.3 %

medium

0.2 – 0.9 %Ø 0.4 %

low

BayWa AgriTrading

BayWaAgrarhandelGmbH

Cefetra B.V.

0.8 – 1.0 %

GroupEBIT-MarginAgri Trading

EBIT-Margin

Capitalemployed

ROCE

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Segment insights & highlightsLegal and reporting structure

ManagementBoard

BayWa AgrarhandelGmbH

BayWaBayWa AgrarInternational

100%

100%

100%

Agrar CoordinationCenter (ACC)

Group CFOAgrar

Focus of international trading activities

StammhausBayWa AG

BayWa Agri Trading GroupGovernance & Coordination

BayWa Agrar GroupBusiness Units

Cefetra B.V. NewCoCefetra

SpA(Italy)

CefetraIberica

SL

100%100%

New Business

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Segment insights & highlights

Fruit Trading

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Segment insights & highlightsGlobal fruit business – major developments

Apples: „BumperHarvest“ of 150mboxes in WashingtonState

Table grapes:T&G-JV withUnifrutti

Import ban hitsEuropean market

Market-entry affectedby trade barriers forGER

Republic of Korea

RussiaUSA

Peru

Import allowance forNZ traders andincreasing demand fornon-Chinese apples

China

Acquisition of Apollo ApplesLtd. by T&G

New Zealand

Polish apples floodEuropean market

Poland

Carve-out of GermanBayWa Fruit organization

Germany

China

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JV of Unifrutti and T&G

Segment insights & highlightsClose-up: new business activities

Strategic Rational

Increases of ENZA’s exports to 6.5m TCE

Potential to improve utilisation and throughput of combinedpackhouse and coolstore facilities at ENZA & Apollo

Apollo has developed stronger prices for sub class 1 apples fromnon ENZA customer and markets

Key Facts & KPIs

NZ’s 3rd largest vertically integrated operator(grow, pack, store, market) with largest NZ coolstore facility

>500 Ha of leased or owned orchards

Strong varietal mix, Jazz & Pacific series + Royal Gala & Braeburn

1.4m export TCEs to 42 countries

Financials 31st Dec 2013: EUR 32m Sales, EUR 4m EBIT

Apollo Apples Ltd.

Strategic Rational

Strategic business field of T&G: Table grapes with heavy growingdemand esp. in the Asian markets and increasing demand for directtrading with South America

Combination of 3rd party supply (current model) and verticalintegration in key sourcing regions.

Key Facts

50:50 Joint Venture between T&G and Unifrutti Chile to grow tablegrapes in the northern Peruvian region of Piura

About Unifrutti:

Among the largest fresh fruit growers and exporters in Chile;owned by the De Nadai International Group

Farming operations in Philippines, South Africa and Chile,combined with an extensive global distribution and sales network

Existing commercial relationship with T&G (Delica)

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Next Steps

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Next stepsBusiness Segments

Challenges & Chances 2015

Upcoming harvest volume world wide

Farmer`s willingness to invest

Rising commodity prices

Digitalization

Ongoing consolidation of PV-trading in EU

Energy transition worldwide (esp. US)

Higher uncertainty for heating oil demand

Economic cycle for the segment with strongrelation to weather impacts (esp. in Q1)

Benefitting from disposal of loss generatinglocations as well as an efficiency program

Next Steps

Further implementation of theAgri Trading strategy

Consolidation of Apollo

Portfolio-Optimization T&G

Augment portfolio with digital activities

Further expansion of BayWa r.e. in the US

Promising project pipeline (wind & solar)

Conventional energy:Focus on operational excellence with theoption of strategic partnering

Ongoing operative improvement

Considering an entrepreneural solution

ENERGY

AGRICULTURE

BUILDING

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Segment insights & highlights

BayWa Digital

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Digitalization of BusinessChallenges and impacts for BayWa

Challenges

Digitalization

is an “unstoppable” process andwill approach more complex industries

is able to revolutionize established corebusiness models and has been able tochange complete industries

can change or offer new ways to approachthe customer directly for various players

BayWa’s core functions are advisory andsales (independent of a specific supplier).Customer ownership is a requirement and anexisting asset.

Impact of Digitalization

Advisory services will be digitalized

New access channels to customers

Implication for BayWa

Keep + Gain customer LEADERSHIP

Protect core business

Embrace chances

Objectives Existing activities (e.g.)

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Digitalization of BusinessBayWa to follow and explore new developments

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PC-Agrar GmbH

Digitalization of BusinessRevolutionary evolution: Acquisition of PCA-group

Strategic Rational

Gaining process know-how, independently developed from the current software offerings

by having the right perspective to see farming operations as a whole via knowledge about the demands placed on farming operations (i.e. laws/requirements, productivity, technology) through impartial evaluation of various technical possibilities and the realization that individual systems must be integrated

as a basis for smart-farming capabilities (farm management systems, applications and integrated service offers).

Company Profile & Key Facts

Founded 1985, headquartered in Pfarrkirchen, Germany

Employees ca. 100

Team: experienced team with know-how in programing and sales of smart farming solutions

Customer base: ca. 10,000

Revenue: ca. EUR 8m (2013, consolidated)

EBITDA: ca. EUR 1m (2013, consolidated)

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Digitalization of BusinessBayWa smart farming: Go-to-market concept

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Thank youvery much for yourattention!