Number: 01224-PIU05 | Date 28 March 2024

BayWa AG expects earnings to improve in the financial year 2024

  • • BayWa AG closes the financial year 2023 with operating earnings of €304.0 million, just below the forecast for the year.

  • • The rapid rise in interest rates is having a negative effect on earnings across all business divisions.

  • • After interest and tax, the consolidated net loss for the year stands at €93.4 million, compared to a net profit of €239.5 million in the previous year.

  • • With "Strategy 2030", CEO Marcus Pöllinger aims to boost the Group's profitability in the long term and return BayWa to positive territory in 2024.

Munich, 28 March 2024 - After years of strong growth, the macroeconomic environment changed massively for BayWa AG in 2023, as reflected in the balance sheet for the most recent financial year. Consolidated revenues totalled €23.9 billion in the financial year 2023 (2022: €27.1 billion). At €304.0 million (2022: €504.1 million), operating earnings before interest and tax (EBIT) were down on the previous year's exceptional results, as expected. The Group therefore only fell just short of its annual forecast of €320 to €370 million. Although BayWa succeeded in increasing EBIT by 14% compared to 2021, before the start of the war against Ukraine, the rapid rise in interest rates had a negative impact on all business divisions and put pressure on the internationally active portfolio company's earnings. After deducting interest and tax, BayWa closed the past financial year with a loss of €93.4 million, down €332.9 million year on year.

"We are using 2024 for consolidation," says Marcus Pöllinger, Chief Executive Officer of BayWa AG. "To this end, we are currently looking at each of our 500-plus Group companies and defining areas for growth or optimisation, as well as business areas that BayWa intends to divest. Going forward, each entity must be profitable in its own right. By rolling out our

'Strategy 2030', we will increase BayWa's profitability and reduce our costs across all business divisions and administrative units. This will enable us to move the equity ratio towards 20% in the medium term and continue to strengthen our crisis resilience. The Board of Management's goal is to return BayWa to profitability by 2024."

The company aims to achieve earnings of between €470 and €520 million by the end of 2026, having originally intended to reach this target in 2025. BayWa is counting on the consistently strong appeal of the markets it serves in the fields of food and energy, both of

which offer good prospects for the future. "Our major growth areas are the international grain and speciality products trade, as well as renewable energies," Pöllinger says. "Those are

fields where we are making sustainable investments. I see a need for optimisation in the agriculture and building materials business units. That is something we are tackling with determination."

Operating earnings satisfactory in 2023 - Cefetra Group and Agricultural Equipment improve on high prior-year level once again

In the Agricultural Equipment Segment, sales were boosted by the resolution of supply chain problems and farmers' high propensity to invest. As a result, the previous year's record revenues and EBIT were once again exceeded. The Cefetra Group Segment was able to successfully seize trading opportunities offered by fluctuating prices in both the traditional and speciality business.

In the Renewable Energies Segment, increased earnings in energy trading were unable to compensate for the weak demand and drop in prices in the solar module business. Both revenues and EBIT fell short of an exceptional 2022.

The Global Produce Segment continued to struggle with the consequences of Cyclone Gabrielle, which destroyed large parts of the plantations and harvest in New Zealand in February 2023. Alongside the harvest losses, insurance payments, some of which were not fully settled in the previous year, also impacted the result. Rising prices for exotic fruits on the market were unable to compensate for this shortfall.

The Agri Trade & Service Segment suffered from significant price drops, particularly in the fertilizer business. Extreme weather conditions over the course of the entire growing season also had a negative impact on both the volume and quality collected in domestic grain trading.

The drastic slump in German residential construction led to a huge drop in demand in the Building Materials Segment. The company had already taken steps to counter this trend in the previous year with a cost-cutting programme, site closures and recruitment freeze. The effect of these measures will be reflected in the 2024 result.

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More information is available atwww.baywa.com/press.

Print-ready press photos, footage material and video statements can be foundhere.BayWa AG on LinkedIn:www.linkedin.com/company/baywa

The LinkedIn profile of BayWa Investor Relations can be viewedhere.

Press contact

BayWa AG Arabellastraße 4 81925 Munich Germany Anja Richter

Tel.: +49 151 16175177 E-mail:anja.richter@baywa.de

About BayWa AG

BayWa AG is a globally active group with the business units energy, agriculture and building materials. As a global player with revenues of €23.9 billion in 2023, it develops innovative and sustainable solutions for the basic human needs of food, energy, heating, mobility, construction and housing. The company has around 25,000 employees in over 50 countries. The headquarters of the parent company, which was founded in 1923 and celebrated its 100th anniversary in 2023, are in

Munich. BayWa AG's roots lie in agricultural cooperative trading, and its mission is to provide rural regions with everything they require for agriculture. More information is available atwww.baywa.com/press.

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BayWa AG published this content on 28 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2024 06:35:06 UTC.