IR Newsletter Q3/2021

Investor Relations

Newsletter 3rd quarter

2021

Strong, above-average

third quarter - BayWa reaffirms targets for the year

Overview

• Strong EBIT growth in all three operating segments
• Energy Segment:

After the first nine months of the current financial year, the BayWa Group is reporting a price-relatedyear-on-year increase in revenues of 17.1% to around €14.3 billion (Q1-3/2020: €12.2 billion). Earnings before interest and tax (EBIT) climbed by 86.7% year on year, rising from €102.7 million to €191.7 million as at 30 September 2021. This significant improvement in earnings was carried by all three core operating segments.

The Energy Segment generated the largest rise in earnings. This positive performance was solely due to the Renewable Energies business unit, where photovoltaic component trading succeeded in matching the strong development in the first half of the year and more than compensating for the anticipated decline in earnings from the Conventional Energy business unit. In the

Building Materials Segment, the continued dynamic development in the building materials trade led to significant earnings growth. The Building Materials Segment has so far been able to offset supply bottlenecks and rising prices through efficient logistics structures. The Agriculture Segment also recorded a marked rise in EBIT. Here BayWa benefited from higher commodity prices for agricultural products and from high investment propensity among farmers.

"The third quarter was an unusual quarter that was characterised by rising commodity prices," says Klaus Josef Lutz, Chief Executive Officer of BayWa AG. "All three operating segments were able to use this market environment to their advantage. We also further advanced our contribution to the energy transition."

• Strong trade in photovoltaic components
• Significant rise in wood pellet sales

• Agriculture Segment:

• BayWa leverages dynamic development of agricultural product prices
• High investment propensity among farmers continues

• Building Materials Segment:

• Profit margins reach new highs

• BayWa AG signs ESG-linked syndicated financing agreement for €1.7 billion

Key Financials of the

BayWa Group

Income Statement

in EUR million		Q1 2021		Q2 2021		Q3 2021	01-09/2021	01-09/2020		Change
Revenues	4,272.1	5,011.3	5,005.3	14,288.7	12,197.8	17.1%
EBITDA	103.0	159.9	108.6	371.5	264.8	40.3%
EBIT	45.1	99.5	47.1	191.7	102.7	86.7%
EBT	20.9	73.1	22.5	116.5	25.8	>100%
Consolidated net result	14.7	52.1	16.7	83.5	18.3	>100%

EBIT per Segment

in EUR million		Q1 2021		Q2 2021		Q3 2021	01-09/2021		01-09/2020		Change
Energy	37.0	20.3	22.8	80.1		48.0	66.9%
Renewable Energies	33.7	17.1	18.2	69.0		22.0	>100%
Conventional Energy	3.3	3.2	4.6	11.1		26.0	-57.3%
Agriculture	31.2	57.1	23.1	111.4		77.5	43.7%
Cefetra Group	11.0	9.1	8.7	28.8		16.6	73.5%
Global Produce	1.0	13.5	8.2	22.7		30.2	-24.8%
Agri Trade & Service	14.7	24.3	-5.0	34.0		6.7	>100%
Agricultural Equipment	4.5	10.2	11.2	25.9		24.0	7.9%
Building Materials		−5.7	39.3	27.8	61.4		39.2	56.6%
Innovation & Digitalisation		−3.2		−1.6	-2.9	-7.7		-8.4	8.3%
Other Activities		−14.2		−15.6	-23.7	-53.5		-53.6	0.2%
Total	45.1	99.5	47.1	191.7		102.7	86.7%

		Share of revenues	Share of EBIT (operational) -
Earnings per share (EPS)*		per Segment	per segment
		in % as at 30/09/2021	in % as at 30/09/2021
in EUR

0.99

0,68

-0.33

01-09/2020	01-09/2021		Energy		Agricul-		Building	Energy	Agricul-	Building
	25.8 %		tural		Materials	31.7 %	tural	Materials
					63.1 %		11.1 %		44.0 %	24.3 %

* Earnings per share including hybrid dividend

Capital market

Capital market developments, 01-09/2021

Stock markets rose to new heights in the third quarter. In Au- gust, the German benchmark index (DAX) reached an all-time high of 16,030 points over the day. However, prices dropped again in September. A renewed increase in new coronavirus infections, supply bottlenecks for essential economic goods and skyrocketing prices for gas and electricity had a negative impact on many sectors of the economy. The crisis involving the insolvent real estate developer Evergran- de in China and the signalised tightening of monetary policy by the US Federal Reserve weighed down growth.

With effect from 20 September 2021, Deutsche Börse changed the criteria used to select candidates, as well as the number of constituents included in the index. The DAX grew from 30 to 40 companies, whereas the MDAX was reduced from 60 to 50 constituents. The number of constituents in the SDAX 70 and TecDAX 30 remained the same. The goal of the change is to reduce the previously high weighting of

players from the "old economy" in the DAX (chemicals, auto- motive, financial services) so as to better reflect the overall German market. Furthermore, the criteria for including candidates were made stricter, with only profitable companies being admitted going forward. In addition, every company chosen for inclusion in one of the selective indices must submit audited annual reports and quarterly statements. The composition of the DAX indices will be subject to review twice a year instead of just once.

After a record-setting first six months, the German new issue market saw fewer flotations in the third quarter. Only two companies undertook an IPO. New issue volume stood at €553 million in the third quarter following around €4 billion and ten IPOs in the quarter before that. This decrease was most likely due to the summer holidays and a difficult capital market environment. In terms of the year to date, however, the development on the primary market in Germany remains above-average in comparison to previous years.

BayWa Share 2021: Price performance compared with the SDAX and DAX

		BayWa	SDAX	DAX			BayWa	37.30 €
130 %
							12.9 %	Closing Price on
125 %								01/11/21
120 %
115 %								SDAX	17,213.03*
110 %								16.6 %	Closing Price on
							01/11/21
105 %
100 %
95 %								DAX	15,806.29*
90 %								15.2 %	Closing Price on
							01/11/21
Jan '21	Feb '21	Mar  '21 Apr  '21	May  '21	Jun  '21	Jul  '21	Aug  '21	Sep  '21	Oct  '21
									* Points
Current analyst recommendations				BayWa Share

Kepler Cheuvreux	Buy	August 2021
Pareto Securities	Buy	August 2021
Metzler	Buy	August 2021

Closing Price on 01/11/2021	37.30 €
Closing Price on 30/09/2021	36.40 €
52W High	42.05 €

Warburg Research	Hold	August 2021	52W Low	26.40 €
DZ Bank	Hold	August 2021

Finanzkalender 2021/2022				Investor Relations
							BayWa AG
							Arabellastraße 4
11 November 2021		Analysts' Conference Call on theThird Quarter		8.30 am		BayWa, Munich	D-81925 München
25 March 2022		Analysts' Conference, Full-year 2021		11.00 am		BayWa, Munich	T [phone]
			F [phone]
5 May 2022		Analysts' Conference Call on theFirst Quarter		8.30 am		BayWa, Munich	BayWa Group on the
24 May 2022		Annual General Meeting		10.00 am		ICM, Munich
			internet:
4 August 2022		Analysts' Conference Call on the Second Quarter		8.30 am		BayWa, Munich	www.baywa.com/
			investor_relations