BayWa AG

euro adhoc: BayWa AG
Quarterly or Semiannual Financial Statements / Semi-Annual Report 2003 BayWa Group substantially raises post-tax profit Gratifying trend in the first quarter 2003 holding steady (E)

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Munich, 13 August 2003 - The BayWa Group stayed on track in the second quarter, thus remaining on the path to success in the first six months of this year. At just under EUR 3 billion, sales revenues were over 14 percent higher than in the first half of 2002. Sales in the second quarter of 2003 stood at EUR 1.7 billion and thus around 36 percent higher quarter on quarter and and almost 13 percent higher year on year. The post-tax profit of EUR 22.2 million for the first six months is a considerable improvement against the previous year period.

The first synergies resulting from the integration of WLZ Raiffeisen AG were much more effective than originally expected. The Group intends to release additional rationalisation potential in the second half of the year. Following on from the excellent performance in the first half of 2003 will, however, be difficult due to the unusual drought which will mainly affect parts of the agricultural business of BayWa. Management is nonetheless confident that sales for the year as a whole can be lifted to EUR 6 billion and that the very good DVFA earnings of 2002 can be repeated.

The first-half sales of the Agriculture Segment came in at EUR 1.43 billion, or 12.5 percent higher than the previous-year figure. The Construction segment generated sales of EUR 757 million, thus posting a 3.4 percent increase year on year. The sales revenue in the Energy segment stood at EUR 660 million, making it considerably higher than in the first six months of 2002. The rise of almost 48.3 percent was mainly attributable to heating oil and diesel products. Sales in the Other Activities segment have declined by around 20 percent to EUR 116.4 million as a result of the deconsolidation of the Maximarkt food trading chain.

The upbeat performance of the Group is also reflected in the result. The BayWa Group brought the second quarter of 2003 to a close with a result of ordinary activities of almost EUR 30 million. As against the previous-year quarter, this represents an increase of 5.1 percent. In the first six months of 2003, the consolidated result of ordinary activities exceeded the first half of 2002 by 26.3 percent and reached the EUR 26.4 million mark. The largest contribution to profit was again generated by the Agriculture segment: EUR 20.9 million puts growth at almost 25 percent. This is where the effects from the integration of WLZ are most evident. The Construction segment also experienced a slight uptrend. The result of ordinary activities of minus EUR 1.9 million is an improvement of 22 percent over the first half of 2002. It is also a significant quarter-on-quarter increase. The Energy segment also improved considerably: In comparison with the year-earlier period 2002, the result climbed EUR 2.7 million to EUR 3.3 million. Along with the integration of WLZ, brisker demand for heating oil and higher margins had a positive impact on the result. Despite the considerable decline due to the new scope of consolidated companies, the first-half result of the Other Activities segment, which came in at EUR 4.1 million, fell only just under EUR 2 million short of the comparable previous-year figure.

From the start of the year through to 30 June 2003, the Group cut the number of employees by 484 to 15,228. In particular synergy effects and the streamlining of the organisation during the process of the integration of WLZ as well as the expiry of trainee contracts have had an impact on BayWa AG. Restructuring and the optimisation of processes and locations in the Group’s holdings have also led to further rationalisation effects.

The price of the BayWa share has made up good ground since the start of the year. The registered share with limited transferability has climbed from EUR 5.30 to a level of meanwhile more than EUR 8 recorded at the beginning of August, an increase of over 50 percent. This price trend is a reflection of the Group’s sustained earnings increase, on the one hand, and the fact that the dividend has been raised on a number of occasions, on the other. The company’s listing in the Prime Standard of the Frankfurt stock exchange and reports in the financial press are having an effect, as is the growing interest of private and institutional investors in the BayWa Group. The higher amount of free float resulting from the WLZ integration also serves to support the price.

WKN 519 406; DE 0005194062

end of announcement            euro adhoc 12.08.2003

Further inquiry note: Lothar Schönberger Tel.: +49 (89) 9222 3692 E-Mail:

Branche: Agriculture
ISIN:      DE0005194062
WKN:        519406
Index:    CDAX, Classic All Share, Prime All Share, Prime Standard
Börsen:  Bayerische Börse / official dealing
              Frankfurter Wertpapierbörse / official dealing

Weitere Meldungen: BayWa AG

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