BayWa : IR Newsletter Q3/2023

Investor Relations

Newsletter 3rd quarter

2023

Q3 business development in line with expectations

- BayWa r.e with end-of-year rally

After the first nine months of the current financial year, the BayWa Group reports a price-related decline in revenues of 9.4% year on year to around €18.2 billion. Earnings before interest and tax (EBIT) decreased as expected, from €459.8 million in the previous year to €214.6 million as at 30 September 2023.

The planned shortfall compared to the unprecedented year of 2022 is primarily due to the significantly lower number of projects sold by the Renewable Energies Segment so far over the course of the year. A significant jump in earnings is expected here in the final quarter as a result of the sale of wind farms and solar parks with a total output of over 175 megawatts (MW) and the sale of project rights of roughly 800 MW.

The Cefetra Group and Agricultural Equipment Segments built on their ex-

tremely robust results in the previous year and were key contributors to making up for the declines in earnings in the Building Materials and Global Produce Segments. Clean-up costs following Cyclone Gabrielle in New Zealand are having a substantial impact on fruit and vegetable fruit trading activities.

The Building Materials Segment has been unable to escape the consequences of the slump in the German residential construction market.

"Our diversified business model has proven its worth once again and played a significant role in generating above- average operating earnings in spite of the difficult market situation," said Marcus Pöllinger, CEO of BayWa AG. "However, high interest rates continue to pose a challenge, the effects of which we will have to take into even more consideration in our trading strategy and portfolio management."

Highlights

• Board of Management confirms full-year EBIT guidance for 2023 of €320 million to €370 million
  Energy business unit:
• BayWa r.e. reports planned shortfall; significant project sales expected in the final quarter
  Agriculture business unit:
• Strong performance in international speciality business and trade in agricultural equipment
  Building materials business unit:
• Building materials trade activities continue to be impacted by weak order situation in residential cons- truction
• Above-averageoperating earnings not reflected in EPS due to high interest expenses

Key Financials of the BayWa Group

Income Statement

in EUR million

Revenues

EBITDA

EBIT

EBT

Consolidated net result

Q1 2023

6,280.4

158.8

91.8

14.6

10.4

Q2 2023

6,278.8

163.3

95.1

18.1

12.8

Q3 2023

5,632.6

97.7

27.7

-56.7

-40.2

01-09/202301-09/2022

18,191.8

20,073.0

1. 652.9

1. 459.8

-24.0	342.4
-17.0	244.3

Change

-9.4%

-35.7%

-53.3%

• -100
• -100

EBIT per Business Unit and Segment

in EUR million

Energy1

Renewable Energies

Energy

Agriculture1

Cefetra Group

Agri Trade & Service

Agricultural Equipment

Global Produce

Building materials1

Innovation & Digitalisation

Other Activities

Total

Q1 2023

57.5

53.0

4.5

57.9

17.1

31.0

22.4

-12.6

-9.1

-1.1

-13.4

91.8

Q2 2023

50.2

45.4

4.8

54.0

13.2

8.8

21.5

10.5

9.8

-2.1

-16.8

95.1

Q3 2023

11.6

7.4

4.2

33.1

20.3

6.7

8.7

-2.6

5.1

-1.4

-20.7

27.7

01-09/202301-09/2022

1. 206.5

1. 161.7

1. 44.8

145.0 270.9

1. 52.8

1. 152.3
2. 47.5

-4.7

18.3

5.8 65.8

-4.6		-8.3
-50.9		-75.1

214.6 459.8

Change

-42.2%

-34.6%

-69.9%

-46.5%

-4.2%

-69.5%

10.7%

• -100-91.2%-44.6% 32.2% -53.3%

Earnings per Share (EPS)		Share of Revenues
	per Business Unit
in €		in % as at 30/09/2023
4.08

-0.66

30/09/2022	30/09/2023		Energy		Agri­		Building
		34.7%		culture		materials
				56.8%	8.5%

Share of EBIT (operational) - per Business Unit

in % as at 30/09/2023

Energy	Agri­	Building
44.2%	culture	materials
	53.7%	2.1%

1 Business unit

Capital Market

Developments in the second half of the year 2023 Capital market fundamentals are dominated by declining inflation and largely subdued economic development triggered by high benchmark rates. The European Central Bank (ECB) has raised its rates for a 10th consecutive time. The last hike

• of 0.25% in September 2023 - pushed rates to a new re- cord of 4.50%, while the US central bank (the Fed) increased its benchmark to the range of 5.25 to 5.5%, the highest level seen in 20 years.
  Even though the period of rising rates may be coming to an end, bond markets are now pricing in interest rates remaining at this high level for the time being. The yield on the 10-year Treasury has reached more than 5% for the first time since 2007. Fears of a continuation of the high-interest environment, and the im-

plications of this on economic development, have had a corresponding impact on stock markets. After rallying well in the first half of 2023, stock markets experienced a clear dip in the third quarter driven by the escalating tensions in the Middle East. The DAX, for instance, slipped to a low of just under 14,700 points at the end of October and has only traded below that mark so far this year in January. In view of the ongoing geopolitical unease, high interest rates and significant volatility on global markets, the mood on the IPO market was muted. Almost all major Euro- pean IPOs so far in 2023 are trading below their issue price.

In the third quarter of 2023, 350 companies were floated on the stock market worldwide - 6% fewer than in the same quarter in 2022 (371). Issue volume declined by 27%, to USD 38.4 billion (source: EY press release, 28 September 2023).

BayWa Share: Performance Development compared to the SDAX and DAX from the second half of 2023

	BayWa	SDAX	DAX	BayWa	33.05 €
110 %
			-12.5 %	Closing Price on
105 %				03/11/23
100 %
				SDAX	12,949.71*
95 %				-3.5 %	Closing Price on
				03/11/23
90 %
85 %				DAX	15,189.25*
80 %				-5.9 %	Closing Price on
			03/11/23
Jul  '23	Aug  '23	Sep  '23	Oct  '23	Nov  '23
					* Points

Current Analyst Recommendations

Warburg Research	Buy	November 2023
Baader Bank	Buy	September 2023
Kepler Cheuvreux	Buy	August 2023
Metzler	Buy	August 2023
DZ Bank	Buy	August 2023

BayWa Share

Closing Price on 03/11/2023

Closing Price on 30/09/2023

52W-High

52W-Low

1. €

1. €

1. €

1. €

Financial Calendar 2023/2024

9 November 2023	Interim Report Q3 2023: Analysts' Conference Call	8.30 am	Follow us
28 March 2024	Consolidated Financial Statements 2023: Analysts' Conference	2.00 pm	on LinkedIn
#BayWaIR

8 May 2024	Interim Report Q1 2024: Analysts' Conference Call	2.00 pm
11 June 2024	Annual General Meeting (in person)	10.00 am

BayWa AG

Investor Relations

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81925 Munich

Germany

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BayWa Group on the internet: www.baywa.com/ investor_relations