After the first quarter: BayWa AG expects significantly more dynamic
business in 2024

EQS-News: BayWa AG / Key word(s): Quarterly / Interim Statement/Quarter
Results
After the first quarter: BayWa AG expects significantly more dynamic
business in 2024 (news with additional features)

08.05.2024 / 07:33 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Number: 01724-PIU07 | Date 8 May 2024

After the first quarter: BayWa AG expects significantly more dynamic
business in 2024

  * Revenue and result negative in the first quarter of 2024 as is typical
    for the season

  * Board of Management confirms full-year guidance, Strategy 2030 measures
    take effect

  * Mild weather conditions supporting development in the agriculture
    business unit, energy and construction business units affected by poor
    market conditions

Munich, 8 May 2024 - After a seasonally typical start to 2024, BayWa AG
expects business development to be much more dynamic in the coming months.
With revenue totalling EUR5.2 billion (Q1/2023: EUR6.3 billion), earnings before
interest and taxes (EBIT) amounted to minus EUR61.3 million in the first
quarter (Q1/2023: EUR91.8 million).

'It's clear to see after the first three months of the year that we are on
the right track,' said BayWa CEO Marcus Pöllinger. 'Many of our Strategy
2030 measures are being successfully rolled-out in our Group's business
sectors and Group companies. Inventories and capital tied-up have already
been reduced noticeably, for example in the Agri Trade & Service Segment:
Compared to previous years, we have reduced product levels by 45%, but have
retained our capacity to deliver, as we have streamlined our handling
processes and are supplying the agricultural sector 'just in time'. And this
is why I am very confident about the rest of the financial year.'

The BayWa Board of Management confirms its guidance for 2024. The target
corridor for BayWa AG's EBIT is between EUR365 million and EUR385 million.

Renewable Energies: BayWa planning large-scale project sales in the second
half of the year

BayWa AG's performance in the first quarter of 2024 was driven by
developments in the Renewable Energies Segment: While prices for solar
modules continued to fall and weighed on trading margins, project rights
with a total output of around 230 megawatts (MW) were primarily sold in the
solar park and wind farm project business. BayWa expects further
transactions on a substantially larger scale in the second half of the year.
These will make a significant contribution to the development of earnings.

The agriculture business unit was shaped by various developments in the
first three months of 2024. The Agricultural Equipment Segment was bolstered
by the early start to the season and unwavering investment appetite in
agriculture, enabling it to exceed the record result of the same quarter in
the previous year. The Agri Trade & Service and Cefetra Group Segments also
developed positively. In the Global Produce Segment, the ongoing apple
harvest in New Zealand is pointing to high quality and a successful sales
season.

The negative development in the Construction Segment reflects weak demand
for construction services in Germany.


Individual segment performance

Renewable Energies Segment

The Renewable Energies Segment recorded revenue of EUR904.2 million in the
first quarter of 2024 (Q1/2023: EUR1.5 billion) and EBIT of minus EUR65.2
million (Q1/2023: EUR53.0 million). This significant decline is due to ongoing
weak demand and the extreme drop in prices for solar modules. In the project
business, BayWa primarily sold project rights with a total output of 230 MW
by the end of March. Further project sales (totalling 950 MW) and the sale
of project rights (1.2 GW) are planned by the end of the year.

Energy Segment

With revenue of EUR577.2 million (Q1/2023: EUR633.2 million), EBIT in the Energy
Segment amounted to minus EUR1.6 million and was therefore down on the
previous year, as expected (Q1/2023: EUR4.5 million). Mild winter conditions
resulted in lower demand for heating products. Many consumers had already
stocked up on heating oil at the end of 2023 due to the CO2 price increase
in January. In the wood pellets trade, prices were down 30% against previous
year levels, impacting margins negatively. BayWa is expecting sales volumes
to rise in the coming months given the current price levels and stocks in
boiler rooms running low.

Cefetra Group Segment

The Cefetra Group Segment got off to a good start to the year with revenue
of EUR1.3 billion (Q1/2023: EUR1.4 billion) and EBIT of EUR14.9 million (Q1/2023:
EUR17.1 million). Upheaval on the international agricultural exchanges has
largely subsided. Trade in grain and oilseed meal was almost on a par with
the previous year. Food ingredients business, which includes products such
as nuts and legumes, saw weaker development in the first quarter of 2024. In
addition to declining demand, higher packaging costs had a negative impact
on the business. BayWa expects the segment's above-average performance to
continue over the remainder of the year.

Agri Trade & Service Segment

The Agri Trade & Service Segment concluded the first quarter of 2024 with
revenue of EUR1.2 billion (Q1/2023: EUR1.5 billion) and EBIT of EUR18.1 million
(Q1/2023: EUR31.0 million). There was a significant increase in demand for
operating resources as a result of the early start to the agricultural
season caused by the weather. BayWa expects this positive trend to continue
over the course of the year, especially with regard to more efficient
handling and sales processes for fertilizers and seeds, which will be
rolled-out in other product areas. Sales of agricultural products in the
first quarter were slightly up on the previous year.

Agricultural Equipment Segment

The Agricultural Equipment Segment is continuing seamlessly from the record
year 2023. Revenue rose to EUR592.3 million in the first quarter of 2024
(Q1/2023: EUR539.9 million) and EBIT to EUR24.0 million (Q1/2023: EUR22.4
million). Farmers continue to invest heavily in machinery and technical
equipment. The leading trade fair Agritechnica, which took place again in
November 2023 for the first time since the coronavirus pandemic, provided
positive impetus and created a high order backlog for BayWa. In addition,
BayWa workshops are very well booked given the early start to the season.
The company expects this dynamic development to continue in the coming
months.

Global Produce Segment

In the Global Produce Segment, revenue after the first three months of the
current financial year totalled EUR269.2 million (Q1/2023: EUR257.1 million),
while EBIT amounted to minus EUR9.9 million (Q1/2023: minus EUR12.6 million). In
the German pome fruit business, the sale of the 2023 apple harvest will
continue until early summer. Prices are high, as fewer apples were harvested
than in the previous year. This also benefits the export business of BayWa
subsidiary T&G in New Zealand, for which Europe is an important sales
market. The sales of tropical fruits, such as mangoes and avocados, fell
short of expectations in the first quarter of 2024 due to the weather
conditions.

Construction Segment

The Construction Segment began 2024 in line with expectations with revenue
of EUR363.7 million (Q1/2023: EUR414.4 million) and EBIT of minus EUR21.5 million
(Q1/2023: minus EUR9.1 million). High construction prices and continually high
mortgage rates have brought residential construction to a virtual
standstill. BayWa expects positive impetus from civil engineering and public
sector construction as well as from the business of BayWa Bau Projekt GmbH,
which sold additional residential units by the end of March. In addition,
the cost-cutting measures already initiated will have a positive impact on
earnings in the Building Materials Segment over the course of the year.

More information is available at www.baywa.com/press.
Print-ready press photos, footage material and video statements can be found
here.
BayWa AG on LinkedIn: www.linkedin.com/company/baywa

The LinkedIn profile of BayWa Investor Relations can be viewed here.

Press contact:

BayWa AG
Stefan Bartels
Tel.: +49 151 65537317
E-Mail: stefan.bartels@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 revenue of EUR23.9
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 at www.baywa.com/press.




Contact:
Antje Krieger, BayWa AG, Deputy Head of Corporate Communications,
tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 12-36 80,
e-mail: antje.krieger@baywa.de


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Additional features:

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File description: EN_Q1_2024_Factsheet
File: https://eqs-cockpit.com/c/fncls.ssp?u=8abd99aba51b39266c5572230eacbc42
File description: BayWa_AG_headquarter_Munich_Copyright_BayWaAG

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08.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        BayWa AG
                   Arabellastraße 4
                   81925 Munich
                   Germany
   Phone:          +49 (0)89/ 9222-3691
   Fax:            +49 (0)89/ 9212-3680
   E-mail:         prcc@baywa.de
   Internet:       www.baywa.com
   ISIN:           DE0005194062, DE0005194005,
   WKN:            519406, 519400,
   Indices:        SDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard), Munich;
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Stuttgart, Tradegate Exchange
   EQS News ID:    1898137

End of News EQS News Service
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1898137 08.05.2024 CET/CEST