BayWa : defies the Corona crisis and grows significantly in 2020

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BayWa AG

PR/Corporate Communications/

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Arabellastr. 4

81925 Munich

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Internetwww.baywa.com/ Press

02421-PIU10

25 March 2021 Antje Krieger

+49 89/9222-3692

+49 89/[e-mail]

BayWa defies the Corona crisis and grows significantly in 2020

New record set in total operating earnings

Munich, 25 March 2021 - BayWa AG, Munich, significantly exceeded its targets for the financial year 2020 despite the restrictions associated with the coronavirus pandemic. At €215.2 million, earnings before interest and tax (EBIT) were significantly better than expected (2019: €188.4 million). All segments contributed to this positive trend, with some business units generating record-breaking figures. As expected, there was a moderate rise in revenues to €17.2 billion (2019: €17.1 billion). BayWa AG plans to raise its dividend for 2020 by 5 cents to €1.00 per share.

"As a provider of essential goods and services, BayWa is a diversified, international company with a successful track record in forward-looking business units such as Renewable Energies says Klaus Josef Lutz, Chief Executive Officer of BayWa AG. "BayWa has therefore proven to be robust in the coronavirus crisis as well, plus it has even managed to achieve growth. The global expansion of renewable energies is a megatrend that continues unabated. In 2020, we sustained our growth in the Renewable Energies business unit and achieved record-breaking revenue and EBIT figures. Furthermore,

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our conventional business areas also developed positively. From heating oil and wood pellets to fruit and tractors and the building materials trade, almost all operating areas benefited from high levels of demand and recorded year-on-year growth, in some cases by a substantial margin." The only business area to post negative EBIT was the German agricultural trade, despite higher revenues. "This is where one-off costs for the restructuring of our Agri Trade & Service business unit, which we implemented in eastern and northern Germany last year, are having an impact," Lutz continues. "This expenditure was necessary to secure future profitability in the German agriculture business and was more than compensated for by results in other business divisions. BayWa's diversified approach has once again proven to be a major advantage in this regard."

BayWa expects revenues and EBIT to increase slightly year on year in the financial year 2021, provided the restrictions imposed on the global economy due to the ongoing coronavirus pandemic remain manageable. "Renewable Energies will continue to be a pillar of our success in the current financial year," the Chief Executive Officer adds. The project pipeline for 2021 is well-filled with 1.1 gigawatts (GW). The capital increase at BayWa r.e. renewable energy GmbH (BayWa r.e.) by Swiss investor EIP provides additional tailwind.

Energy Segment generates new records

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EBIT in the Energy Segment reached a new record high of €142.7 million in 2020 (2019: €127.4 million), even though revenues fell year on year to €4.2 billion (2019: €4.5 billion).

Project business and solar trading were the main drivers of revenues and earnings in the Renewable Energies business unit. With a total output of 667.0 megawatts (MW), the share of turnkey wind farms and solar parks in the reporting period stood at 94% (2019: 37%). The total output of traded photovoltaic (PV) components rose by a double-digit percentage once again to over 1 GW due to the heightened demand for green electricity. BayWa expects both revenues and EBIT to experience further significant growth in 2021, when revenues from independent power producer (IPP) business will be included for the first time. BayWa plans to independently operate around 20 solar parks and wind farms with a total output of 600 MW by the end of the year.

In the Conventional Energy business unit, the low oil price and political measures, such as the lowering of value added tax in the second half of the year and the introduction of carbon tax at the turn of the year, fuelled demand for heating oil. It is unlikely that heating oil sales will be able to match the strong previous-year figures. Wood pellets have established themselves at BayWa as a strong pillar of the Conventional Energy business unit. With wood pellets a carbon-neutral alternative to heating

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oil, this positive trend will continue in the current financial year. BayWa is also continuing its successful expansion in the fields of CO2-optimised mobility. Four LNG filling stations for heavy-goods vehicles came online in 2020, a figure BayWa intends to more than double by the end of the current year. The number of charging stations and charging points where the BayWa filling station and charging card is accepted as a means of payment also increased further in the reporting period.

Significant EBIT growth in the Agriculture Segment The Agriculture Segment increased its revenues moderately to €11.0 billion in 2020 (2019: €10.9 billion). EBIT rose substantially to €107.1 million (2019: €96.6 million).

In the second half of 2020, international trade in grain and oilseed benefited from price increases triggered by anticipated harvest losses in key cultivation regions around the world, as well as strong demand for feedstuff grain in China as pig stocks recover. The effects of the measures to contain the coronavirus pandemic on supply chains remained manageable. On the other hand, increased logistics costs, as well as competitive and price pressure in soya trading, had an adverse effect on trading business. Trading of specialities and sustainable agricultural commodities was stable and is to be expanded further in 2021.