Interim Report Q3 2021

Quarterly

Statement

Q1-3/2021

• BayWa Group

BayWa Group - Contents

Contents

Quarterly Statement

Overview of Business Performance of the BayWa Group

Asset Development from 1 January to 30 September 2021

Earnings Development from 1 January to 30 September 2021

Business Performance of the Segments from 1 January to 30 September 2021

Outlook

Selected Financial Information

Consolidated Balance Sheet as at 30 September 2021

Consolidated Income Statement from 1 January to 30 September 2021

Financial Calendar

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 Q1-3/2021

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BayWa Group - Quarterly Statement

Quarterly Statement 1

Overview of Business Performance of the BayWa Group

Above-average third quarter - BayWa reaffirms targets for the year

• Earnings (EBIT) up significantly year on year after nine months; improvement in earnings in all three operating segments
• Energy Segment: brisk trade in photovoltaic (PV) components; sharp rise in wood pellet sales
• Agriculture Segment: higher prices for agricultural products provide a boost; specialities business performs strongly
• Building Materials Segment: positive trend in the construction sector continues; building materials trade flourishing

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 recorded a €32.1 million increase in earnings to €80.1 million in total (Q1-3/2020: €48.0 million). This positive performance was solely due to the Renewable Energies business unit. In Poland, the first subsidy-free solar park, with a capacity of

64.6 megawatts (MW), was realised and sold to the Irish Alternus Energy Group. In addition, PV 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. While trade in heating oil was weaker, in line with expectations, there was considerable growth in wood pellet sales. The Agriculture Segment lifted its earnings by €33.9 million compared with the same period of the previous year to

€111.4 million (Q1-3/2020: €77.5 million). Both international and national trade in grain and agricultural inputs were major earnings drivers in the Agriculture Segment and benefited from improved trading opportunities as well as higher prices on the agricultural commodities markets. Earnings in the Agricultural Equipment business unit were also up on the first nine months of the previous year. In contrast, fruit trading in the Global Produce business unit faced a difficult operating environment and was unable to match the high level of 2020. Building materials trade continued to record dynamic growth. The Building Materials Segment benefited from the ongoing strength of the construction sector and saw earnings increase by around €22 million after the first nine months to a total of €61.4 million (Q1-3/2020: €39.2 million).

The management confirms the forecast for full-year 2021 that it made after the first six months and expects a substantial year-on-year rise in the BayWa Group's operating earnings (EBIT).

Highlights in the third quarter of 2021

• BayWa AG signs ESG-linked syndicated financing agreement for €1.7 billion
• BayWa AG pools fresh products business in the wholly-owned subsidiary BayWa Global Produce GmbH
• BayWa r.e. commissions its largest wind farm to date in Europe (Lyngsåsa in Sweden, 94.6 MW)
• BayWa r.e. teams up with the Fraunhofer Institute for Solar Energy Systems ISE and other research partners to build the largest agrivoltaic (Agri-PV) research facility for apples and espalier fruit.

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 Q1-3/2021

BayWa Group - Quarterly Statement

Asset Development from 1 January to 30 September 2021

The BayWa Group's total assets stood at €11,086.5 million as at the end of the third quarter and were therefore €2,042.1 million higher than at the end of the financial year 2020. This development was primarily due to the increase in unfinished goods, which largely related to the Renewable Energies business unit and the renewable energy plants under construction. In addition, current receivables in particular rose due to seasonal factors.

Equity amounted to €1,871.6 million, up €615.5 million, or 49.0%, compared with 31 December 2020. This rise was primarily attributable to the capital increase at BayWa r.e. AG (BayWa r.e.), Munich, Germany. By way of an equity contribution of €530 million, funds advised by the Swiss investor Energy Infrastructure Partners AG (EIP) took over 49% of the shares in BayWa r.e. The positive consolidated net result, as well as the actuarial gains from provisions for pensions and severance pay, also contributed to this development. A dividend of €35.3 million was distributed for the financial year 2020.

Non-current liabilities increased by €874.6 million, or 28.8%, as against the end of the financial year 2020 to €3,910.6 million as at 30 September 2021. This figure includes the syndicated financing agreement signed by BayWa AG on 9 September 2021 with a total volume of €1.7 billion, of which around €770 million had been drawn down as at the reporting date.

Current liabilities grew by €552.0 million to €5,304.3 million, mainly as a result of two opposing developments: Taking out the syndicated loan enabled short-term debt to be reduced by €251.1 million to €1,966.0 million as at the end of the third quarter. By contrast, current trade payables rose by €480.8 million to €1,445.2 million due to seasonal factors. This was accompanied by an increase in other provisions of €102.7 million to €402.7 million and in financial liabilities from commodity futures, FX hedges and interest rate hedges of €155.2 million to €662.5 million.

Earnings Development from 1 January to 30 September 2021

The BayWa Group's revenues grew by €2,090.9 million, or 17.1%, year on year to €14,288.7 million as at the end of the third quarter of 2021. The rise in other operating income of €113.1 million to €251.6 million is primarily due to foreign currency effects. Taking into account the decline in inventory changes - mainly resulting from project sales in the Renewable Energies business unit - the BayWa Group's gross revenues for the period were up by €1,911.1 million, or 14.7%, to €14,909.4 million.

In line with revenues, the cost of materials increased by €1,541.1 million to €13,061.4 million. Gross profit therefore exceeded the previous year's figure by €370.0 million, reaching €1,848.0 million.

The growth in personnel expenses by €82.7 million, or 9.7%, to €935.4 million is primarily attributable to the rise in the number of employees, especially in the Renewable Energies business unit.

Other operating expenses climbed by €170.3 million, or 46.6%, to €535.5 million in the reporting period, in particular because of foreign currency effects as well as higher legal and consultancy fees. Depreciation and amortisation of property, plant and equipment and intangible assets also increased by €17.7 million to €179.8 million.

At €197.3 million, the result of operating activities is €99.3 million above the previous year's figure.

The decrease in income from participating interests of €10.3 million relates mainly to participating interests recognised at equity (down €5.4 million). In addition, other income from shareholdings fell by €4.9 million year on year to €1.0 million.

The BayWa Group's earnings before interest and tax (EBIT) amount to €191.7 million as at the third quarter of 2021, up 86.7%, or €89.0 million, on the previous year (€102.7 million).

Net interest in the first nine months improved by €1.7 million year on year to minus €75.2 million.

Including tax expenses of €33.0 million, the consolidated net result for the first three quarters of 2021 is €83.5 million, an increase of €65.2 million compared with the same period of 2020.

BayWa Group Q1-3/2021

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BayWa Group - Quarterly Statement

Business Performance of the Segments from 1 January to 30 September 2021

Energy Segment

				Revenues							EBIT
In € million	Q1-3/2021		Q1-3/2020		Change in %			Q1-3/2021		Q1-3/2020		Change in %
Renewable Energies		2,219.6	1,329.8	66.9		69.0	22.0	> 100
Conventional Energy		1,465.3		1,323.6		10.7			11.1		26.0		- 57.3
Energy Segment		3,684.9		2,653.4		38.9			80.1		48.0		66.9

The BayWa Group's Energy Segment comprises business with renewable energies, which is pooled in BayWa r.e. AG, as well as trade in fossil and renewable heating oils, fuels and lubricants. The Energy Segment experienced a strong third quarter, reporting a 38.9% increase in revenues year on year in the first nine months of 2021. Earnings before interest and tax (EBIT) climbed by 66.9% to €80.1 million (Q1- 3/2020: €48.0 million). This significant growth compared with the same period of the previous year is exclusively attributable to the Renewable Energies business unit. In particular, the segment was able to build on the positive trend in photovoltaic (PV) component trading from the first half of 2021 and further improve its earnings. Higher demand was recorded above all in Germany, Switzerland and Luxembourg. Accordingly, the total output of the PV modules sold was 72% higher year on year. The sale of the "Witnica" solar park (64.6 MW) in Poland to the Irish Alternus Energy Group also made a positive contribution to earnings in the third quarter. Overall, wind farms and solar parks with a capacity of over 200 MW were sold worldwide in the first nine months of the financial year 2021. As in previous years, a large proportion of the planned project sales will take place in the final quarter.

In the Conventional Energy business unit, EBIT after the first nine months of the reporting period was down on the high previous-year figure, as expected. This development is principally due to the approximately 32% decline in sales of heating oil caused by the surge in oil prices, extensive stockpiling in the previous year as a result of the cut in VAT, and the introduction of carbon pricing. In addition, the fuel business saw an 18.7% fall in sales and was unable to reach the previous year's level. However, a positive performance was delivered by the heating business with solid fuels such as wood pellets, which are benefiting from the introduction of carbon pricing because they are a carbon- neutral energy source. Sales in this area rose by 31.2% year on year, driven partly by capacity expansion at the two pellet plants in Wunsiedel in the previous year. BayWa Mobility Solutions GmbH opened two more liquefied natural gas (LNG) filling stations in the third quarter, further expanding its refuelling network for heavy goods transport.

Agriculture Segment

In € million

Cefetra Group

Global Produce

Agri Trade & Service

Agricultural Equipment

Agriculture Segment

	Revenues
Q1-3/2021	Q1-3/2020	Change in %
3,802.0	3,281.0	15.9
709.3	711.6	- 0.3
3,119.9	2,764.9	12.8
1,378.2	1,358.6	1.4
9,009.4	8,116.1	11.0

EBIT

Q1-3/2021		Q1-3/2020		Change in %
28.8	16.6	73.5
22.7		30.2		- 24.8
34.0		6.7		> 100
25.9		24.0		7.9
111.4		77.5		43.7

The Agriculture Segment is divided into four business units: Cefetra Group, Global Produce, Agri Trade & Service and Agricultural Equipment. The Cefetra Group and Agri Trade & Service business units cover international and national trade in agricultural products and agricultural inputs. Global Produce encompasses global trade with fruit and fruiting vegetables. The Agricultural Equipment business unit trades in agricultural machinery and plants and offers a wide range of services. The Agriculture Segment's revenues in the first nine months of the current financial year were up considerably on the previous year's level. The operating result (EBIT) improved by 43.7% in the reporting period, which was primarily due to higher earnings contributions in the Cefetra Group and Agri Trade & Service business units.

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