BayWa : Interim Report Q3 2022

Quarterly

Statement

Q1-3/2022

• BayWa Group

BayWa Group - Contents

Contents

Quarterly Statement	2
Overview of Business Performance of the BayWa Group	2
Asset Development from 1 January to 30 September 2022	3
Earnings Development from 1 January to 30 September 2022	3
Business Performance of the Segments from 1 January to 30 September 2022	4
Outlook	8
Selected Financial Information	10
Consolidated Balance Sheet as at 30 September 2022	10
Consolidated Income Statement from 1 January to 30 September 2022	12
Financial Calendar	13

Note

Amounts are stated in millions of euros and rounded to one decimal place, unless otherwise stated. This may result in minor discrepancies in sum totals and when calculating percentages.

For reasons of readability, gender-specific wording and formal reference to all gender identities are not used. The selected form stands for all genders (m/f/other).

BayWa Group Q1-3/2022

1

BayWa Group - Quarterly Statement

Quarterly Statement 11

Quarterly Statement

Overview of Business Performance of the BayWa Group

Strong third quarter - BayWa raises full-year earnings forecast for 2022 once again

• Earnings before interest and tax (EBIT) at the BayWa Group more than double year on year after nine months
• Earnings up in all three operating business units
• Energy business unit: brisk trade in photovoltaic components and conventional energy carriers
• Agriculture business unit: higher prices for agricultural products; specialities business performs strongly
• Building materials business unit: demand and ability to deliver goods remain high in the building materials trade

The dynamic business performance of the previous quarters continued at the BayWa Group in the first nine months of 2022. Revenues increased by 42.1% compared to the same period in 2021 to stand at roughly €20.1 billion (Q1-3/2021: €14.1 billion), due mainly to higher prices on agricultural and energy markets, as well as high demand on the whole in all business divisions. Earnings before interest and tax (EBIT) climbed by 140% in the reporting period, rising from €191.7 million to €459.8 million. This significant increase in earnings was carried by all three operating business units.

In the energy business unit, earnings (EBIT) rose by €126.4 million to a total of €206.5 million (Q1-3/2021: €80.1 million). This positive performance was primarily attributable to the Renewable Energies Segment, where photovoltaic (PV) component trading managed to match the very strong development seen in the first half of the year. In addition, BayWa benefited in this segment from the successive sale of multiple solar parks in the Netherlands and from strong electricity marketing activities. Trade involving heat energy carriers and fuels, where the current energy crisis and the associated uncertainty led to increased stockpiling by customers, also saw a significant rise overall year on year.

The agriculture business unit posted a €159.5 million rise in earnings (EBIT) compared with the same period in the previous year to €270.9 million (Q1-3/2021: €111.4 million). In the Agri Trade & Service and Cefetra Group Segments, international and national trade in grain and agricultural inputs was the main driver of earnings. Both segments benefited from improved trade opportunities and from a clear year-on-year increase in prices on agricultural commodities markets. In addition, the steps taken to optimise trade management in domestic grain trading had a positive effect on earnings. Earnings in the Agricultural Equipment Segment were also up on the first nine months of the previous year. In particular, trade involving agricultural machinery saw growing demand coupled with high capacity utilisation in the service business. Fruit trading in the Global Produce Segment had to contend with weather-related volume and quality losses in New Zealand, as well as logistics bottlenecks. As a result, the Global Produce Segment fell short of the earnings posted in the previous year.

In the building materials business unit, EBIT increased by €4.4 million year on year as at 30 September 2022 to stand at €65.8 million in total (Q1-3/2021: €61.4 million). The momentum in the Building Materials Segment continued despite rising interest rates for financing and rising energy costs. BayWa benefited from high demand paired with a continued strong ability to deliver.

Overall, BayWa AG performed very positively in the first nine months in the face of adversity and is optimistic for the final months of the financial year 2022 in spite of a worsening macroeconomic situation. After initially raising the earnings forecast for the full year in July 2022, the Board of Management has now lifted its full-year earnings (EBIT) guidance to between €475 million and €525 million on account of the continued strong performance (see ad hoc release dated 25 October 2022).

1 This quarterly statement was prepared in accordance with IFRS principles. It is not an interim financial report in accordance with IAS 34 or a financial statement in accordance with IAS 1.

2	BayWa Group Q1-3/2022

BayWa Group - Quarterly Statement

Highlights in the third quarter of 2022

• BayWa r.e. sells subsidiary Bioenergy to Macquarie (closing: 30 September 2022)
• BayWa r.e. shortlisted for offshore tender in France
• BayWa Global Produce sells majority interest in climate-controlled greenhouse in United Arab Emirates (closing: 31 July 2022)
• BayWa Energy opens new wood pellet warehouse in Schlacht, near Glonn (roughly 680 square metres for 3,000 tonnes of wood pellets)
• BayWa AG awarded Prime Status in ISS ESG rating - industry leader in sustainability

Asset Development from 1 January to 30 September 2022

The BayWa Group's total assets stood at €13,738.4 million as at the end of the third quarter and were therefore €1,967.0 million higher than at the end of the financial year 2021. The main driver was the seasonal increase in current receivables, which materialised across all segments of the BayWa Group. The rise in inventories, especially goods, also contributed to the overall trend.

The equity of the BayWa Group has increased by €40.4 million to €1,856.5 million since 31 December 2021. This increase was predominantly due to the consolidated net result for the year as at 30 September 2022 and actuarial gains from provisions for pensions and severance pay caused by the rise in the rate of interest. The dividends of €37.1 million distributed for the financial year 2021 had the opposite effect, as did measurement effects recognised in equity through other comprehensive income as a result of the sharp hike in electricity prices, especially with regard to electricity trading in the Renewable Energies Segment.

Both non-current and current liabilities were higher on 30 September 2022 than at the end of the financial year 2021. The extensive utilisation of both current and non-current funding is attributable in particular to the financing of grain inventories, which have increased by a clear margin due to the early harvest, and the sharp rise in prices in the Agri Trade & Service Segment, as well as the project developments in the Renewable Energies Segment.

Earnings Development from 1 January to 30 September 2022

The BayWa Group's revenues stood at €20,073.0 million as at the end of the third quarter of 2022 - an increase of €5,948.2 million, or 42.1%, year on year. The rise in other operating income of €160.3 million to €414.8 million is primarily due to foreign currency effects. Taking into account a slight decline in inventory changes, particularly following project sales in the Renewable Energies Segment, the BayWa Group's gross revenues were up by 41.3% to €20,841.2 million.

In line with revenues, the cost of materials increased by €5,468.1 million to €18,366.7 million. Gross profit therefore exceeded the previous year's figure by €624.7 million, reaching €2,474.5 million.

The €131.2 million increase in personnel expenses to €1,066.6 million is primarily attributable to the rise in the number of employees, especially in the Renewable Energies Segment.

Other operating expenses climbed by €264.3 million to €801.6 million in the reporting period, in particular because of foreign currency effects. Depreciation and amortisation of property, plant and equipment and intangible assets also increased by 7.4% to €193.1 million.

The result of operating activities stood at €413.2 million after the first nine months of the current financial year and was therefore up by €215.9 million year on year.

BayWa Group Q1-3/2022

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BayWa Group - Quarterly Statement

The €52.2 million increase in income from participating interests results primarily from the sale of Bioenergy GmbH and its subsidiaries to Green Investment Group, a specialist green investor within the Macquarie Group, as at 30 September 2022. At €12.4 million, income from participating interests measured at equity was also up on the figure seen in the same period of the previous year (minus €6.6 million) by a clear margin.

The BayWa Group's earnings before interest and tax (EBIT) stood at €459.8 million at the end of the third quarter of 2022. As a result, this item more than doubled year on year (€191.7 million).

Net interest fell by €42.2 million compared to the first nine months of the financial year 2021 and stood at minus €117.4 million as at

30 September 2022. This development reflects the general rise in interest rates, as well as a higher volume of financing at BayWa r.e. AG.

Including tax expenses of €98.1 million, the consolidated net result for the first nine months of 2022 is €244.3 million, an increase of €160.8 million compared with the same period of 2021.

Business Performance of the Segments from 1 January to 30 September 2022

Energy business unit

				Revenues								EBIT
In € million	Q1-3/2022		Q1-3/2021		Change in %			Q1-3/2022		Q1-3/2021		Change in %
Renewable Energies Segment		4,518.4	2,219.6	> 100			161.7	69.0	> 100
Energy Segment		2,432.6		1,465.3		66.0				44.8		11.1		> 100
Energy business unit		6,951.0		3,684.9		88.6				206.5		80.1		> 100

The BayWa Group's energy business unit consists of the Renewable Energies and Energies Segments. The Renewable Energies Segment covers significant parts of the renewable energies value chain, in particular all project business involving wind farms and solar parks and trading with photovoltaic (PV) components. The portfolio of services is rounded off by technical and commercial plant management and energy trading. The Energy Segment comprises trading activities in fossil and renewable heating oil, fuels and lubricants, and also provides heating and mobility solutions.

The Renewable Energies Segment experienced a strong third quarter in 2022. After the first nine months of the current reporting year, earnings before interest and tax (EBIT) had risen by €92.7 million to €161.7 million (Q1-3/2021: €69.0 million). The significant earnings growth was primarily attributable to trade involving PV components, which succeeded in picking up on the strong development in the first half of the year and building on its outstanding earnings performance. Consequently, the total output of the sold PV modules was almost 79% higher than in the same period in the previous year. Sales of inverters were up by around 61% year on year, with Europe in particular seeing higher demand. In addition, the Independent Power Producer (IPP) business entity, which includes the Energy Trading division, likewise recorded positive earnings development. The business entity benefited from high electricity production of the plants and from electricity marketing. In the project business, a solar park in Thailand and four solar parks in the Netherlands with a total output of

73.2 megawatts (MW) were sold in the third quarter. That figure includes the floating PV project in Sellingen, Netherlands, which - at roughly 41 MW - is the largest floating PV project in Europe and is capable of supplying around 12,000 households with electricity. Overall, wind farms and solar parks with a capacity of some 423 MW were sold worldwide in the first three quarters of the financial year 2022. As in previous years, a substantial share of the planned project sales is scheduled for the final quarter. In addition, Bioenergy GmbH was sold to Green Investment Group (GIG), a specialist green investor within the Macquarie Group, as at 30 September 2022.

4	BayWa Group Q1-3/2022