BayWa AG Annual Report 2011

BayWa AG 

Annual Report 

2011

Key Data at a Glance 

BayWa Group 

In EUR million 2008 2009 2010 2011 

Revenues 8,794.6 7,260.2 7,903.0 9,585.7 

Agriculture Segment 4,048.9 3,269.8 3,505.1 4,258.9 

Agricultural Trade 3,117.3 2,359.9 2,529.0 3,029.6 

Fruit 86.1 83.3 102.8 129.7 

Agricultural Equipment 845.5 826.6 873.3 1,099.5 

Energy Segment 2,462.5 1,837.5 2,358.5 3,111.8 

Energy 2,462.5 1,825.0 2,103.7 2,805.9 

Renewable Energies — 12.5 254.8 306.0 

Building Materials Segment 1,785.8 1,776.1 1,903.1 2,065.6 

Building Materials 1,354.8 1,327.0 1,370.8 1,508.5 

DIY & Garden Centres 431.1 449.1 532.3 557.1 

Other Activities 497.3 376.9 136.3 149.4 

EBITDA 258.1 209.7 228.2 253.6 

EBIT 161.9 115.4 128.9 151.4 

EBT 103.5 75.1 87.1 97.7 

Net income for the year 76.7 59.4 66.8 69.8 

of which: profit due to minority shareholders 18.4 14.3 16.4 18.5 

of which: profit due to shareholders of the parent company 58.3 45.0 50.4 51.3 

Total assets (as per 31/12) 3,065.8 2,939.3 3,253.3 3,913.0 

Non-current assets 1,305.6 1,427.2 1,427.4 1,614.4 

Current assets 1,755.5 1,507.4 1,776.8 2,039.8 

Non-current liabilities 644.9 691.8 881.0 1,147.6 

Current liabilities 1,505.8 1,290.0 1,333.7 1,615.2 

Equity 915.1 957.5 1,005.5 1,068.0 

Equity ratio in percent 29.8 32.6 30.9 27.3 

Share capital (as per 31/12) in EUR million 87.0 87.3 87.6 87.9 

Number of shares (as per 31/12) in million shares 34.0 34.1 34.2 34.3 

Earnings per share in EUR 1.72 1.33 1.48 1.50 

Dividend per share in EUR 0.34 0.40 0.50 0.60 

Special dividend per share in EUR 0.06 

Employees (as per 31/12) number 16,596 16,177 16,432 16,834

Page Table of Contents 

3 Letter to the Shareholders 

6 The Board of Management 

8 The Supervisory Board 

9 The Cooperative Council 

1 The Company 

13 The Business Model of the BayWa Group 

16 Agriculture Segment 

22 Energy Segment 

28 Building Materials Segment 

32 Goals and Strategy 

37 Conducting Sustainable Business 

2 BayWa and the Capital Market 

41 The Share 

45 Investor Relations 

3 Management Report on the 

Company and the Group 

49 Summary of Performance 

51 Business and General Conditions 

58 Earnings, Financial Position and Assets 

69 Opportunity and Risk Report 

74 Significant Events after the Reporting Date 

75 Remuneration Report 

77 Outlook 

4 Consolidated Financial Statements 

85 Affirmation by the Legally Authorised Representatives 

86 Consolidated Balance Sheet 

88 Consolidated Income Statement 

89 Consolidated Statement of Comprehensive Income – Transition 

90 Cash Flow Statement 

92 Statement of Changes in Equity 

94 Notes to the Consolidated Financial Statements 

191 List of Group Holdings (Appendix to the Notes to the Consolidated Financial Statements) 

197 Auditor’s Report 

198 Report of the Supervisory Board 

202 Corporate Governance Report / Statement on Corporate Governance 


210 Imprint 

211 Financial Calendar

Letter to the Shareholders 


Foreword by Klaus Josef Lutz, Chief Executive Officer 

BayWa AG Annual Report 2011 

Dear Shareholders, 

The year 2011 was determined by the euro and 

the sovereign debt crisis, the consequences 

of the tsunami and the nuclear catastrophe in 

Japan, compounded by turbulence from political 

unrest in North Africa and in the Middle East. 

Against this backdrop, the BayWa Group once 

again delivered an excellent result in the past 

year. Revenues rose by 21% to €9.6 billion, with 

the segments of Agriculture, Energy and Building Materials all contributing to this 

strong performance. EBIT came in at €151 million, which is an increase of 17.5%. 

The fact is that we have fully achieved our targets and guidance and met the 

high expectations – another success for the Group’s around 17,000 employees. 

We will continue to energetically pursue our goals with the requisite flexibility, 

underpinned by sound risk management. 

This is particularly applicable to progressing our strategy of innovation and 

internationalisation. The takeover of Turners & Growers Ltd (T & G), New 

Zealand’s market leader in the fruit business, is BayWa’s largest international 

transaction ever. More than 73% in the shares in T & G and close cooperation with 

the fruit producers in New Zealand will enable BayWa to position itself as a global 

player in the supply of pome fruit. We believe that Asia will be the world’s highest 

growth market for fresh fruit. BayWa’s domestic fruit business and the German 

fruit farmers will also benefit through this investment from improved selling 

opportunities for the products in a global market. 

3

4 Letter to the Shareholders 

We intend to forge ahead with expanding our project business in the field of 

renewable energies in the international and national arena. Having activities 

in different countries makes sense simply from the standpoint of evening out 

market fluctuations from political framework conditions. We will remain open for 

interesting acquisitions in Germany and abroad in all our businesses, which also 

particularly applies to the agricultural market. Our international network, which 

is becoming increasingly strong, releases numerous synergies for more growth 

phases in our trading, logistics and services group. 

Similar to 2010, BayWa also issued a bonded loan at the end of 2011. We had 

great success again in placing this bonded loan of €220 million in the capital 

market. The original request was for €100 million. The order book, however, was 

oversubscribed almost three times. The response underscores how sound BayWa 

is and the trust of investors in our company. The bonded loan, which will be used 

exclusively to secure the financing of working capital in the longer term, will 

further strengthen the financial position of the Group. 

At the end of 2011, BayWa made a strategically important decision with far 

reaching consequences: to hive off the DIY & Garden Centres Business Unit and 

integrate it into newly founded BayWa Bau- und Gartenmärkte GmbH & Co. KG. 

This step enables an operational link with Hellweg, a well-known operator of DIY 

and garden centres. It is also a forward-looking solution for the BayWa DIY and 

garden centres business in Germany which was unable to operate profitably 

due to lack of critical mass and a fiercely competitive market environment. The 

new constellation with Hellweg, effective at the start of January, will sharpen the 

competitive edge and profitability of the 56 DIY and garden centres carved out 

and promote job security. We have therefore found a good way, firstly of ensuring 

that the business can continue to operate in a future-oriented manner and 

secondly of enabling BayWa to withdraw in the medium term without loss of value. 

The new company will be reported at equity in future and is thus no longer part of 

the group of fully consolidated companies. 

BayWa AG Annual Report 2011


Our company is in good shape for the BayWa anniversary year 2013 when it will 

be 90 years old. BayWa has made huge leaps and bounds in its development 

and evolution in this decade – unchanged, however, is our view of its underlying 

cooperative structure as a sound foundation. The BayWa brand also reaps the 

benefit of this: A strong brand contributes to success, in national and international 

markets alike. This is why we consistently pursue our family brand strategy. To 

promote awareness of the brand still further, we have opted for sport sponsoring, 

among other measures. BayWa is the new premium partner of the first basketball 

league team of FC Bayern München. 

Now to our development on the stock market: BayWa’s registered share with 

restricted transferability surpassed the €35 threshold for the first time, also in 2011. 

Over the course of the year, the BayWa share was unable to decouple from the 

downturn in Germany’s leading DAX index. BayWa’s success is clearly reflected 

in its dividend. The Executive Board and the Supervisory Board will therefore 

put forward a proposal to the Annual General Meeting of Shareholders to raise 

dividend from 50 to 60 cents, an increase of 20%. Since 2007, when it was 32 

cents, dividend from the BayWa share has almost doubled. Moreover, an increasing 

number of analysts are regularly covering the share, which is very pleasing. BayWa 

is and remains a worthwhile investment because the Group, with its core segments 

of Agriculture, Energy and Building Materials, stands for satisfying the fundamental 

need for food, shelter, energy, warmth and mobility. 

BayWa intends to grow sustainably, while achieving a balance between economy, 

ecology, commitment to society and corporate social responsibility. My Board 

member colleagues and I view open dialogue with our customers, shareholders 

and business partners as an integral part of value-oriented company management. 

May I thank you on behalf of all our employees and the whole BayWa Group for 

your renewed solidarity and support in the year 2011. 

Your 

Klaus Josef Lutz 

Chief Executive Officer of BayWa AG 


5

6 The Board of Management 

The Board of Management 

A 

Klaus Josef Lutz since 1 July 2008 

(Chief Executive Officer) 

PR/Corporate Communication, Group Audit, Corporate 

Marketing, Corporate Business Development, Group Risk 

Management, Building Materials Segment, Personnel and 

Senior Executives 

B 

Klaus Buchleitner since 1 March 2003 

RWA Raiffeisen Ware Austria AG, Vienna 

C 

Andreas Helber since 15 November 2010 

Finance, Investor Relations, Lending, Corporate Real Estate 

Management (CREM), Central Controlling, Information Systems, 

Law, Regional Administration Centres 


D 

Dr. Josef Krapf since 1 October 2002 

Agriculture, Fruit 

E 

Roland Schuler since 1 October 2002 

Energy, Agricultural Equipment, BayWa r.e, coordination of the 

Württemberg region 

Executive Manager 

Götz Ganghofer since 10 November 2010 

Building Materials Segment 

Information on mandates is included in the Notes to the Consolidated Financial Statements under (E.8.) 

Allocation of operations as per 31/12/2011

E 

B 

D 



C 

A 

7

8 The Supervisory Board 

The Supervisory Board 

Manfred Nüssel 

MSc Agriculture (University of Applied Sciences), Chairman, 

President of Deutscher Raiffeisenverband e.V. 

Ernst Kauer 

MSc Agriculture, Vice Chairman 

Chairman of the Works Council of BayWa Headquarters 

General Att. Ök.-Rat Dr. Christian Konrad 

Vice Chairman, Chairman of RAIFFEISEN-HOLDING 

NIEDERÖSTERREICH-WIEN reg.Gen.m.b.H., Vienna 

Georg Fischer 

Master Mechanic for Agricultural Machinery 

Dr. E. Hartmut Gindele 

MSc Agriculture, farmer 

Prof. Dr. h. c. Stephan Götzl 

Association President, Chairman of the Board of Management 

of Genossenschaftsverband Bayern e.V. 

Otto Kentzler 

MSc Engineering, President of the German Confederation 

of Skilled Crafts 

Peter König 

Secretary of the Union, ver.di, Bavaria 


Stefan Kraft M.A. 


Erna Kurzwarth 

Regional Administration Centre Manager of BayWa AG 

Dr. Johann Lang 

MSc Engineering, farmer 

Albrecht Merz 

Member of the Board of Management of DZ Bank AG 

Gunnar Metz 

Chairman of the Main Works Council of BayWa AG 

Gregor Scheller 

Chairman of the Board of Directors of Volksbank Forchheim 

eG, member of the Board of Directors of Bayerische 

Raiffeisen-Beteiligungs-AG 

Werner Waschbichler 

Vice Chairman of the Works Council of BayWa Headquarters, 

Operations Manager Logistics (until 16 February 2012) 

Bernhard Winter 

Head of Accounting Control Agriculture 

Information on other mandates is included in the Notes to the Consolidated Financial Statements under (E.8.)

The Cooperative Council 

The Cooperative Council 

Wolfgang Eckert 

MBA, Chairman, Chairman of the Board of Directors of 

VR-Bank eG 

Members pursuant to Article 28 para. 5 

of the Articles of Association 






Other members 

Wolfgang Altmüller 

MBA, Chairman of the Board of Directors of 

VR meine Raiffeisenbank eG 

Dietmar Berger 

MSc Agricultural Engineering & Economics, President of 

Mitteldeutscher Genossenschaftsverband e.V. 

Franz Breiteneicher 

Managing Director of Raiffeisen-Waren GmbH Erdinger Land 


Albert Deß 

Member of the European Parliament 

Günter Dreher (until 31 May 2011) 

MSc Administration, Chairman of the Board of Directors of 

Augusta-Bank eG (until 4 May 2011) 

Martin Empl 


Manfred Geyer 

Chairman of the Board of Directors of RaiffeisenVolksbank eG 

Gewerbebank 

Erhard Gschrey 

Certified Public Accountant/Tax Consultant, Vice Chairman of the 

Board of Management of Genossenschaftsverband Bayern e.V. 

Lorenz Hebert (until 31 July 2011) 

Chairman of the Board of Directors of Raiffeisenbank im Stiftland 

eG (until 31 July 2011) 

Lothar Hertzsch 

MSc Agricultural Engineering & Economics, farmer 

Franz-Xaver Hilmer (since 1 August 2011) 

Managing Director of Raiffeisenbank Straubing eG 

9 

(1/2)

10 The Cooperative Council 

The Cooperative Council (2/2) 

Karl Hippeli 

Member of the Board of Management of Raiffeisenbank 

Ochsenfurt eG 

Konrad Irtel 

Spokesman of the Board of Directors of VR Bank 

Rosenheim-Chiemsee eG 

Martin Körner 

MSc Engineering (University of Applied Sciences), farmer, 

fruit farmer 

Franz Kustner 

Farmer 

Alois Pabst 

Farmer 

Hans Paulus 

MSc Agriculture, Director, Commodities Department of 

Raiffeisenbank im Stiftland eG 

Josef Raffelsberger 

Farmer 

Joachim Rukwied 

MSc Engineering (University of Applied Science), President of 

Landesbauernverband in Baden-Württemberg e.V. 


Hermann Schultes 

President and National Councillor of the Chamber of Agriculture 

of Lower Austria, farmer 

Gerd Sonnleitner 

President of the German Association of Farmers, the Bavarian 

Association of Farmers and the European Association of Farmers 

Ludwig Spanner 

Farmer 

Wolfgang Vogel 

President of Sächsischer Landesbauernverband e.V. 

Thomas Wirth (since 1 August 2011) 

Spokesman of the Board of Directors of Raiffeisenbank im 

Stiftland eG 

Maximilian Zepf 

Member of the Board of Management of Raiffeisenbank 

Schwandorf-Nittenau eG

The Company 

Vision 

In a closely knit international market 

environment, we rank among the 

leading trading and services companies 

in our core segments of Agriculture, 

Energy and Building Materials. We 

intend to sustainably reinforce this 

position and continue to grow profitably. 

These goals will raise the Group’s 

earnings strength and secure our future 

in increasingly globalised markets. 

(Taken from BayWa AG’s Corporate Guidelines) 

Section 

Page 

13 The Business Model of the BayWa Group 

16 Agriculture Segment 


1 

28 Building Materials Segment 

32 Goals and Strategy 

37 Conducting Sustainable Business

Turners & Growers 

– a special acquisition 

6 March 2012: The takeover of Turners & Growers (T & G), Auckland, New 

Zealand, has been approved. For BayWa, this is not only one of its largest 

acquisitions ever but also a purchase of exceptional significance. With more 

than 73%, BayWa now holds a majority stake in New Zealand’s leading 

exporter and producer of fresh fruit and has access via the global distribution 

and trading structures of T & G to all important international sales regions, in 

particular to Asia as the high-growth market of the future. In joining up with 

T & G, BayWa has taken a major step in the direction of globalisation which 

will also benefit BayWa’s domestic fruit business. 

89 

years old 

BayWa was established in 

1923, which is 89 years ago. 

Trust, solidity and innovation 

are the hallmarks of the 

company and the foundation 

of its long-standing success. 

17 

countries 

+ 44% 

A sign of BayWa’s growing internationalisation: 

The Group’s international revenues (excluding 

Austria as home territory) rose 44% in 2011 

compared with a year ago. 

The BayWa Group is re- 

presented in 17 countries: 

15 European states, the 

US and New Zealand.

All about the offerings of Agri- 

culture, Energy and Building 

Materials under www.baywa.de, 

and information on the company 

under www.baywa.com 

1 • The Company • The Business Model of the BayWa Group 

The Business Model of 

the BayWa Group 

The BayWa Group’s business model is based on trading and services in its three core segments of Agriculture, 

Energy and Building Materials. Efficient logistics across all segments play an important role in the company’s 

successful development. BayWa has evolved from a regional agricultural trader into one of the leading trading 

and services groups through growth geared to the long term, coupled with the steady expansion and adjusting 

of its range of products and services. With strong roots its home market, the BayWa Group is currently 

represented in 15 countries in Europe, the US and New Zealand. 

Growth in the global population, the rising standard of living in many parts of the world and the associated increase 

in the need for resources, particularly food and energy, are the great challenges of the 21st century. At the same 

time, there are good growth opportunities especially in the business of catering to the fundamental human need for 

food, shelter, energy, mobility and warmth. The development of harvest volumes and the fluctuating availability of 

fossil energy carriers in important producer countries have a direct impact on the price of these commodities in the 

global market. Individual countries, sub-markets and companies are no longer able to decouple from this trend. 

BayWa covers the fundamental need for food, shelter, energy, mobility and warmth in its three segments of 

Agriculture, Energy and Building Materials. At the same time, the diversification of its activities is also a stabilising 

component in the development of the company. BayWa’s core competences reside in its extensive product 

know-how as well as in its logistics and control of the flow of goods. Beyond this, BayWa expands its offering 

of supplementary services on an ongoing basis. 

Revenues by segment 

1.6% 

21.5% 

Agriculture Energy Building Materials Other Activities 


44.4% 

32.5% 

13

14 1 • The Company • The Business Model of the BayWa Group 

What BayWa stands for 

BayWa’s thought and action is aligned to long-term customer relationships built on the premise of partnership and 

fostered through trust, solidity and innovation. These are the values which BayWa stands for – values which are 

also perceived by its customers. As a listed company, BayWa attracts the attention of the capital market as well, and 

the corresponding expectations of return are derived from competition with other corporations. In markets where 

the pace of change is accelerating the capacity for innovative solutions is becoming increasingly important. The 

key words here are: growth orientation, flexibility and sustainability. Adjusting flexibly to accommodate changing 

requirements and leveraging promising new business opportunities to preserve sustainability are the prerequisites 

underpinning future growth. The centrepiece of BayWa’s strategy is therefore the steady development of the 

company, sustainable success and seizing new opportunities for growth, especially abroad. 

Clear path to the future 

Structure of the BayWa Group 

Group BayWa AG 

Segments Agriculture Energy Building Materials 

Business units 

down-to-earth 


competent 

sustainable 

Agricultural Trade 

Fruit 

Solidity 

fit for the future 

Agricultural Equipment 

based on partnership 

Trust 

1 Business line 2 Hiving off of DIY & Garden Centres in Germany effective 1 January 2012 

Innovation 

Energy 

BayWa r.e 1 

close to the customer 

forward-looking 

growth-oriented 

flexible 

Building Materials 

DIY & Garden Centres 2

€ 9.6 billion 

Revenues of the BayWa Group 

in 2011 

1 • The Company • The Business Model of the BayWa Group 

Strong customer loyalty through regional presence 

The BayWa Group generated revenues of more than €9.6 billion with a workforce of almost 17,000 employees 

in 2011. The Group’s three core segments of Agriculture, Energy and Building Materials operate as decentralised 

units, each responsible for their own profitability, with their own locations and sales networks. They are managed 

through clearly defined levels of autonomy under the uniform corporate strategy. A tight regional sales network in 

all three segments ensures proximity to the customer and promotes strong customer loyalty. This proximity often 

gives BayWa a unique selling proposition in its regions compared with competitors. BayWa optimises its network 

of locations and the range of products and services offered on an ongoing basis, adjusting the offering to changing 

customer needs and business requirements in order to maintain and strengthen this competitive advantage. 

With its know-how and strong regional roots, BayWa is a reliable partner to its customers and bridges the gap 

between local producers and the international markets. At the same time, BayWa continues to develop through 

organic growth and tapping into new areas of business. Ultimately, BayWa’s business is determined by increasingly 

globalised markets and through growth in foreign countries. 

BayWa’s business activities 

Customers 

• Farmers 

• End customers 

• Industry 

• Commerce 

• Trade 

Operating activities 

• Trade 

• Logistics 

• Services 

• Finance 


Markets 

• Agriculture 

• Energy 

• Construction 

15 

Unique selling proposition 

• Customer proximity 

through full-coverage 

network for sales and 

logistics

16 1 • The Company • Agriculture Segment 

€ 6.4 million 

Investment in the Schweinfurt 

agri-centre 

Agriculture Segment 

Structural change in the agriculture sector, Germany’s new energy policy, globalisation and growing price 

volatility in the markets for agricultural produce are the challenges to be met in the Agriculture Segment. 

BayWa shapes this change by continually aligning its activities to suit new framework conditions. In doing 

so, it focuses on optimising and modernising its locations, extending its product and service range and 

internationalising its agribusiness. 

4,258.9 

million 

A prerequisite for covering the global growth in the demand for food and renewable resources used to produce 

energy is higher productivity in crop farming. Structural change in the agriculture sector is leading to increasingly 

larger farming operations which can only efficiently farm their land by stepping up the use of machinery and 

equipment. At the same time, acreage yield is on the rise thanks to the optimisation of cultivation procedures. 

Renewable raw materials are becoming increasingly important as a result of the new energy policy. BayWa supports 

the farmers in all these areas through innovative offerings. The efficiency of BayWa’s agricultural centres plays a key 

role as considerably larger volumes of both operating resources and agricultural produce need to be handled. 

Efficiency enhanced through investment 

BayWa has taken account of its customers’ wish for greater efficiency by implementing an extensive modernisation 

program at its various locations focused specifically on raising intake, handling and warehouse capacities. A prime 

example in the Agricultural Trade Business Unit is the investment of €6.4 million in the Schweinfurt agri-centre in 

October 2011 where grain warehousing capacity was almost doubled to 26,000 tons and intake efficiency raised 

to 250 tons an hour. In addition, BayWa has increased its fertiliser warehousing capacity to 7,000 tons. The new 

high-performance agriculture centre replaces three former operations and, with a port, railway connections and a 

motorway nearby motorway, has optimal prerequisites for fulfilling customer requirements for more efficiency. 


6,859 

employees 

44.4 

% 

Revenues in 2011 Number of employees in 2011 Share in consolidated revenues in 2011

1 • The Company • Agriculture Segment 

Structure of the Agriculture Segment 

Segment Agriculture 

Business units Trade Fruit Agricultural Equipment 

Products/ 

services 

• 

Grain and oilseed 

• Seed 

• Fertilisers 

• Crop protection 

• Feedstuff 

• Cultivation and advisory 

services 

Revenues of the Agriculture Segment (in € bn) 

4.2 

3.8 

3.4 

3.0 

2.6 

2.2 

1.8 

1.4 

1.0 

0.6 

0.2 

Key operating data of the Agriculture Segment 


• 

Dessert pome fruit 

Soft and stone fruit 

Pome fruit from organic 

contract farming 

2008 2009 2010 2011 

Agricultural Trade Business Unit (sales volume in ktons) 

Grain 4,361.7 4,832.1 5,013.8 4,909.5 

Fertilisers 2,019.3 1,599.0 1,847.7 1,896.1 

Seed 256.1 243.3 257.0 256.3 

Feedstuff 2,198.3 2,089.8 2,316.7 2,372.1 

Fruit Business Unit (sales volume in ktons) 

Dessert pome fruit 62.7 66.0 64.5 85.9 

Soft and stone fruit 4.3 5.9 7.1 6.6 

Agricultural Equipment Business Unit (units) 

Number of tractors sold – new 3,315 3,038 3,168 3,850 

Number of tractors sold – used 1,058 1,148 1,308 1,382 

• 

• 

• 

• 

Agricultural equipment for 

farmers, foresters, local 

authorities and commerce 

Agricultural buildings 

Customer service/workshop 

service 

Spare parts 

• Leasing 

Brokerage services for financing 

and lease agreements 

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Agricultural Trade and Fruit business units Agricultural Equipment Business Unit 

17


44% 

The Agriculture Segment comprising 

the Agricultural Trade, Fruit and 

Agricultural Equipment business 

units as the mainstay of revenues 

Similar to Freiberg am Neckar, 

16 of BayWa’s agricultural 

locations have their own ports 

with optimum logistics. 

Other important projects in 2011 included the expansion of the Heilbronn location, building a new state-of-theart 

centre in Aufhausen and extending the Bamberg Port location. In Heilbronn, warehouse capacity for grain was 

expanded up to 40,000 tons and the intake capacity raised to 600 tons per hour. Moreover, ship loading facilities 

permit the use of the waterways. The Aufhausen site, situated at the heart of the largest vegetable growing area in 

Lower Bavaria, replaces the former locations of Reisbach and Eichendorf and has fertiliser mixing facilities where 

fertilisers can be tailored to meet the needs of the individual plants. Business formerly conducted at the locations in 

Ebelsbach, Sonnefeld and Pretzfeld has now been combined under the extended Bamberg Port site. 

Agribusiness is the BayWa Group’s largest segment with a share of 44% in consolidated sales. The three business 

units of Agricultural Trade, Fruit and Agricultural Equipment comprised under this segment encompass virtually the 

whole agricultural value chain. The extensive product range is rounded off by advisory services and general services, 

from specialist questions relating to crop growing across technical advice and service through to aspects of running 

farming operations, marketing and sales. 

BayWa’s Agriculture Segment in Germany is situated mainly in the Federal States of Bavaria, Baden-Württemberg, 

Saxony-Anhalt, Thuringia and in southern Brandenburg in around 483 locations, 16 of which have their own ports. 

In its agribusiness, BayWa operates via its subsidiaries throughout virtually the whole 

of Austria. Furthermore, the BayWa Group is represented through its own local 

companies in selected countries in Central and Eastern Europe, such as the Czech 

Republic, Slovakia, Poland, Slovenia, Croatia and Serbia. 


From sowing the seed to the sale of agricultural produce 

Agricultural Trade supplies the farmer with a full range of operating resources, 

including seeds, fertilisers and crop protection, as well as feedstuff for livestock 

farming. The most important services in the business of agricultural trade include the 

collection, storage and sale of the harvest. BayWa’s core competencies in performing 

these tasks lie in its in-depth product know-how, logistics and the management of the 

flow of goods in both large and small volumes. BayWa is one of Europe’s largest fullline 

suppliers in the agriculture sector and also trades some of its products worldwide. 

Its extensive know-how has made it a preferred partner of the farmers for many years. Against the backdrop of 

greater price volatility in the markets for agricultural produce, BayWa provides the farmers with a price hedging 

system called Landea which they can use to secure their income while, at the same time, benefiting from future 

price increases. 

The Group supplies seed to the farmers from its own seed production as well as through the sale of seed sourced 

externally, thereby ensuring that a complete range is offered. In the sale of fertilisers and crop protection, the 

product mix and timely advance storage for use on the respective dates are particularly important. To guarantee the 

supply of different fertilisers customised for the respective crops, many BayWa locations have equipment for mixing 

fertilisers. This enables farmers to provide the right nutrition for the specific crops through spreading fertilisers 

specially mixed for this purpose.

BayWa plays a key role in 

logistics between producer 

and processer, trader and 

consumer. 


BayWa ensures the above-average quality of resources and feedstuff bought from third parties by working together 

with selected renowned suppliers. With a trading volume of around 1.9 million tons of fertiliser a year, BayWa is a 

key distribution partner of the industry. Its own feed mills in southern Germany and Austria 

produce more than 780 ktons of various feedstuff for livestock breeding, mainly for cattle, 

pigs and poultry. BayWa ensures the highest standards in its own feedstuff production 

through meticulous quality controls applied to all input materials sourced from third parties. 

The product range is supplemented also in this instance by extensive services such as advice 

on optimising feeding, application consulting and mixing feedstuff tailored to individual 

requirements. 


Grain and oilseeds are some of BayWa’s most important agricultural products with sales 

amounting to around 4.9 million tons in the 2010/11 grain year. BayWa focuses its activities in 

this business on the collection, processing, drying, storage and selling of produce. The Group 

maintains warehouse capacities of around 2.4 million tons for storage and sale at a later 

date. In terms of logistics, BayWa performs a central interface function between producers 

and processors, such as grain or oil mills, malt houses, animal feed plants and trade and 

consumers, through its ability to concentrate large volumes of goods and transport them in 

homogenous lots. 

Fruit from BayWa 

In its Fruit Business Unit, BayWa is a leading supplier of German dessert fruit for food retailers 

and, through its ten locations situated on Lake Constance, the Neckar and in Rhineland 

Palatinate, including an organic fruit wholesale centre, the biggest single seller of German 

dessert and the largest supplier of organic pome fruit from organic farming. The Fruit 

Business Unit has numerous collection points for dessert pome fruit, industrial pome fruit, 

organic fruit as well as soft and stone fruit. Furthermore, it makes an important contribution 

in Württemberg to conserving the orchards so typical of the landscape through its regionwide 

collection of fruit. Storage, sorting and packaging is carried out in the fruit wholesale markets 

of the business unit in accordance with international quality standards and using cutting-edge technology. The 

merchandise can be suitably packaged for trade in more than 200 variations and delivered to the customer through 

the business unit’s own just-in-time logistics. In addition, BayWa collects, sorts, stores and packages as a marketer 

under contract to Württembergische Obstgenossenschaft Raiffeisen eG and sells the dessert fruit to customers in 

Germany and abroad. As a system supplier, BayWa delivers fruit from South America to wholesalers and retailers 

through its subsidiary Frucom. Finally, the Fruit Business Unit has tapped new potential in international growth 

markets through the majority acquisition of Turners & Growers, a fruit trading company based in New Zealand. 

19


Two separate distribution channels 

for the leading agricultural machinery 

manufacturers AGCO (with the 

Fendt, Massey Ferguson, Valtra and 

Challenger brands) and CLAAS for 

premium sales and service. 

Agricultural equipment for farming and forestry operations and municipalities 

The Agricultural Equipment Business Unit covers the whole value chain of agricultural equipment to the exception 

of manufacturing. The product offering ranges from farming and forestry equipment, including cutting-edge 

milking and feeding equipment, equipment for municipalities, stabling construction and equipment as well as other 

facilities, such as biogas for the generating of renewable energies, through to specialist agricultural equipment 

and replacement parts. The core competencies of the Agricultural Equipment Business Unit reside in its sales 

and services as a full-line supplier to farming and forestry, contractors, municipalities, local authorities and 

private customers. The business unit occupies a leading market position in its sales territories of Bavaria, Baden- 

Württemberg, Saxony, southern Brandenburg and Austria. 

In response to the growing requirements of customers in the trading and servicing of sophisticated agricultural 

equipment, BayWa also sells the product ranges of CLAAS and AGCO (including the Fendt, Massey Ferguson, Valtra 

and Challenger brands), both leading manufacturers of agricultural equipment, via two separate sales channels. 

The ensuing specialisation in the sale of AGCO and CLAAS was achieved through spinning off and establishing 

new locations, a process that was completed in 2011. These measures served to put the 

product spectrum of the respective manufacturer on a broader footing and improve advice 

for customers concerning complex and specialised agricultural equipment. In addition, the 

Group offers separate product lines for non-motorised agricultural equipment. The sale and 

servicing of the CLAAS brand is carried out by companies in which BayWa owns a majority 

and CLAAS a minority shareholding respectively. BayWa strengthened the sales territory for 

the CLAAS brand through the newly acquired companies of LTZ Chemnitz GmbH and CLAAS 

Württemberg GmbH in 2011. The products manufactured by AGCO are offered and serviced 

in the various locations under the BayWa logo. Moreover, the Group has assumed the function 

of general importer for John Deere in Austria and also sells Lindner tractors. New additions to 

the product offering in 2011 included the full range of McHale, an Irish company specialised in 

the harvesting of hay, haylage, silage and straw. 


In the service business, the central warehouse in Schweinfurt stores more than 79,600 

articles and ensures a timely and high level of availability of spare parts. Along with original 

parts, BayWa offers high-quality spare and wear parts under its own TECparts brand. A tight 

network of more than 260 workshops and around 460 mobile service vehicles guarantees 

high standards of service. Modern customer service vehicles in particular ensure swift repair 

and maintenance on the field or in the farm-yard of the customer during harvesting. The 

emergency breakdown service, available to customers on a 24/7 basis, is one of its kind. The 

offering of the business unit is rounded off by services which include the leasing of machinery 

or acting as an intermediary in organising financing and leasing contracts through partners 

belonging to the cooperative federation.

Joining up with New Zealand’s leading 

fresh fruit exporter is a major 

step for BayWa in the direction of 

globalisation. 


Quantum leap in internationalising the fruit business 

BayWa has significantly reinforced its position in international fruit trading through the acquisition of more than 

73% of the shares in Turners & Growers (T & G), a fruit trader based in New Zealand, enabling it to become a 

global player in the supply of pome fruit. Turners & Growers was established in 1897 and is New Zealand’s leading 

distributor, marketer and exporter of premium fresh produce. With a market share of around 40% in the domestic 

market, it is the largest fruit and vegetable trader, selling more than 200 fresh fruit products to food retailers. In the 

export business, the company has a unique international standing through a trading platform in South America, 

the US, South Africa, Asia and Europe. Moreover, T & G holds 70% in Delica NZ, one of New Zealand’s largest 

exporters of fresh and dessert fruit. It also owns the exclusive market rights to the global cultivation and sale of 

ENZA dessert fruit. Finally, T & G is an important grower of greenhouse tomatoes, apples, 

kiwis, lemons and mandarines. With a workforce of around 1,400 employees, the company, 

which is listed on the New Zealand Stock Exchange, generated revenues of €346 million in 

the financial year 2010. 


This acquisition has given BayWa access to all the most important growth markets on all 

continents, particularly Asia, and has enabled the company to become one of the world’s 

leading fruit traders. Business in Germany has also benefited from this transaction through 

supplementing the product range and securing the ability to supply different types of 

fruit throughout the year thanks to the different harvest seasons. In particular, BayWa’s 

attractiveness as a full-line supplier to the food retail sector has been enhanced. Moreover, the 

established sales channels of T & G create additional sales opportunities for German fruit in 

the international high-growth markets. 

21

22 1 • The Company • Energy Segment 

Energy Segment 

The Energy Segment’s activities comprise, on the one hand, trading in conventional energy, which is 

focused on the sale of fossil and renewable heating fuels, especially heating oil and wood pellets, as well as 

fuels and lubricants. Its second mainstay is renewable energies, with activities in this business combined 

under BayWa r.e, which has enabled BayWa has to put its energy business on a broader and sustainable 

footing while, at the same time, securing energy resources for future generations. Through acquiring 

profitable participations in the field of solar, wind and biogas, BayWa has established itself in strategic 

growth markets. The requisite expansion of sources of renewable energy is still strongly influenced by legal 

framework conditions. In order to reduce its dependency on this framework, BayWa pursues a strategy of 

dual diversification of its business: by country and by energy carrier. 

3,111.8 

million 

The Energy Segment, which contributes around 32% to consolidated revenues, is BayWa’s second largest field of 

activity. The business of conventional trading and distribution in heating oil and fuels is characterised by relatively 

low margins, but nonetheless generates an attractive return due to the low level of capital committed. BayWa is 

expanding its heating oil business in particular through acquisitions to secure sales volumes in a market set to 

contract in the long term. To this end, BayWa took over Diermeier Energie GmbH, a company operating in Lower 

Bavaria in the product segments of heating oil, diesel, Otto fuel, lubricants, wood pellets and AdBlue, as well as 

Hessen-based Wingenfeld Energie in 2011. In Austria, BayWa acquired a majority holding of 89% in WAV Wärme 

Austria VertriebsgmbH through its subsidiaries RWA Raiffeisen Ware Austria AG and „UNSER LAGERHAUS“ 

WARENHANDELSGESELLSCHAFT mbH. Its main sales territories in the conventional energy business are 

located in southern and eastern Germany and in Austria. Energy sales offices are responsible for the end customer 

business. 


1,387 

employees 

32.5 

% 


1 • The Company • Energy Segment 

Structure of the Energy Segment 

Segment Energy 

Business units Energy BayWa r.e 1 

Products/ 

services 

1 Business line 

Key operating data of the Energy Segment 

• 

• 

Heating oil 

Diesel fuels 

Otto fuels 

Solid fuels 

• Lubricants 

Green gas and green electricity 

Revenues of the Energy Segment (in € bn) 

3.0 

2.7 

2.4 

2.1 

1.8 

1.5 

1.2 

0.9 

0.6 

0.3 

0.0 


2008 2009 2010 2011 

Energy Business Unit (sales volume in ktons) 

Heating oil 1,137 1,021 982 1,124 

Fuels 1,256 1,240 1,302 1,348 

Lubricants 22 18 20 21 

Wood pellets 127 151 193 220 

Number of fuel stations 275 275 273 280 

BayWa r.e business line 

Wind, planned output capacity 1 in megawatts 28.5 80.6 

Solar, planned output capacity 1 in megawatts 5.6 7.8 

Biogas, planned output capacity 1 in megawatts 3.8 13.4 

Solar, sold capacity in megawatt peak 95 143.9 

1 Project output capacity: sale or commissioning of plants in the respective financial year 

• 

Biomass technology 

Solar technology 

Wind power 

Other renewable energies 

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Energy Business Unit BayWa r.e (business line) 

23


Volume of heating oil (in ktons) 

1,400 

1,350 

1,300 

1,250 

1,200 

1,150 

1,100 

1,050 

1,000 

950 

900 

850 

800 

750 

700 

Volume of fuel (in ktons) 

1,400 

1,350 

1,300 

1,250 

1,200 

1,150 

1,100 

1,050 

1,000 

950 

900 

850 

800 

750 

700 

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 


Good growth prospects for 

wind power. 


Heating oil, lubricants, diesel and more 

The fossil heating fuel business has been exposed to considerable fluctuations in sales and revenues over the years, 

depending on the weather conditions, stock levels and raw material price trends. In contrast, fuels are generally 

more dependent on the overall economic trend, which influences the distances travelled. Similarly, lubricant sales 

are influenced by economic framework conditions, specifically by the trend of industrial applications in the metal 

processing sector. Steady expansion has enabled the conventional energy business to develop positively – despite 

these market fluctuations – in a multi-year comparison. 

BayWa runs 244 fuel stations in Germany under the name of BayWa and AVIA and another 36 through its Austrian 

subsidiaries. In addition, GENOL, a wholesale company belonging to the Group, supplies around 485 cooperative 

fuel stations in Austria with fuel. In its large customer business, BayWa delivers to municipalities commerce and the 

mineral oil trade. The sale of lubricants includes small and mid-sized companies as well as industrial customers. 

BayWa ranks among the market leaders in Germany for environmentally compatible rape-oil-based lubricants. The 

Energy Segment is working consistently on optimising its business structures, particularly through improving its 

logistics, adjusting its network of locations and through the cross-regional management of its vehicle fleet. BayWa 

Energie Dienstleistungs GmbH was established in 2010. This company specialises in offering an end-to-end 

package comprising the planning, financing, building, operating and maintenance of heat generation plants and 

other plants from one source. The first projects were successfully realised in Aschaffenburg, Munich, Weißenhorn, 

Weiden and Waldkraiburg in 2011. 

Outlook for green gas and green electricity 

In addition, BayWa launched its end customer business in green gas and green electricity in the financial year 2011. 

The certified sources of energy are sold under the BayWa brand. Quality seals awarded by TÜV Süd and Ok-power 

guarantee that green electricity by BayWa is wholly generated from sources of renewable energy. The biomethane 

portion of green gas is supplied by BayWa-Beteiligung r.e Biomethan GmbH. BayWa is pursuing this approach with 

a view to becoming a full-line supplier across all sources of energy for mid-sized enterprises, municipalities and 

private customers. 

BayWa r.e business line 

By tradition, BayWa has always been a “green” company which has placed great importance on the responsible use 

of natural resources. Renewable energies ideally supplement the company’s business model and fully accord with 

BayWa’s guiding principle of doing business on a sustainable basis. Through its strategic expansion of activities in 

the field of renewable energies, BayWa has created another sustainable business mainstay 

in the past two years which will also serve as a basis for progressing the internationalisation 

of the BayWa Group. Last but not least, BayWa also equips its own locations with renewable 

energies systems, thereby making a direct contribution to environmental conservation and 

climate protection. 


Having combined existing activities in the field of renewable energies under BayWa r.e as 

a new business line in 2010, BayWa continued to pursue its path of expansion in 2011. 

RENERCO Renewable Energy Concepts AG, for instance, raised its stake in “La Muela”, 

Spain’s largest wind farm, from 33% to 73%. In addition, the management of operating 

activities in Spain was combined under BayWa r.e España S.L.U. based in Barcelona as the 

new holding company. Moreover, BayWa r.e secured access to the wind power market in 

Austria and Eastern Europe by acquiring 90% of the shares in Austrian ECOWIND GmbH. 

25


The takeover of L & L Rotorservice 

creates new potential for 

maintenance and repowering. 

BayWa’s acquisition of 80% of the shares in Focused Energy LLC, Santa Fe, in 2010 marked the start of its entry 

into the US market. Focused Energy operates in the business of photovoltaic systems for residential and small to 

mid-sized commercial applications. The year 2011 saw BayWa purchase a 70% stake in 

WKN USA, LLC, a company headquartered in San Diego and specialised in wind farm project 

management. WKN USA is an established turn-key developer of wind projects offering a 

range of services encompassing site development, the planning and financing, as well as the 

construction and operation of wind farms through to technical and commercial administration. 

The company has a project pipeline of around 1,000 megawatts in various US states. A 

new holding, BayWa r.e USA LLC in Santa Fe, was also set up in the US for the purpose of 

managing activities in the field of renewable energies. 


In 2011, BayWa strengthened its position in the UK by establishing Dulas MHH Ltd. under 

the umbrella of MHH Solartechnik. Dulas MHH Ltd., based in Machynlleth Powys, Wales, 

advises specialist companies in all matters affecting the planning of photovoltaic plants and 

systems and supplies them with all components. Beyond this, BayWa gained a footing in 

the Italian market at the start of 2012 through a participation of 70% in Tecno Spot GmbH, a 

photovoltaic wholesaler with head offices in South Tyrol. As an established premium supplier, 

Tecno Spot covers the entire wholesale value chain in the business of photovoltaic system 

integration. 

In Germany, BayWa r.e has taken over 100% in L & L Rotorservice GmbH, headquartered 

in Basdahl. The company is specialised in the repair and maintenance of rotor blades and 

operates in the future-oriented market of optimisation and repowering. Given that installed 

capacity is rising swiftly, this market segment is likely to experience high organic growth in 

the future. 

BayWa has therefore established itself within a short space of time in the strategic growth 

markets of solar, wind and biogas. It covers the value chain from planning, development and 

trading right through to services for plant operation. The recent measures to promote growth 

have raised the share of international business in BayWa r.e’s revenues, from 27% in 2010 to 

more than 44% a year later. At the same time, the Group is pressing ahead with international 

diversification: Today BayWa is present in all key European countries and in the US in the field 

of renewable energies.


Structure of the Renewable Energies business 

Business line BayWa r.e GmbH 

Business Solar technology Wind power Biomass 

Companies P/PM T I/GC O/M E/T P/PM I/GC O/M E/T P/PM T I/GC O/M E/T 

MHH Solartechnik 

MHH France S.A.S. 

Focused Energy LLC 

Dulas MHH Ltd. 

Tecno Spot GmbH 

RENERCO Renewable 

Energy Concepts AG 1 

ECOWIND GmbH 

WKN USA, LLC 

L & L Rotorservice GmbH 

r.e Bioenergie GmbH 2 

r.e Biomethan GmbH 

Schradenbiogas GmbH 

& Co. KG 

• P/PM = Planning and Project Management • T = Trade • I/GC = Installation and General Contractor function 

• O/M = Operation and Maintenance • E/T = Energy Production and Trade 

1 Additional projects in the field of geothermics 2 Formerly Aufwind Neue Energien GmbH 


27

28 1 • The Company • Building Materials Segment 


The year 2011 was one of far-reaching strategic decisions for the Building Material Segment. BayWa conducted 

an extensive analysis on the prospects of the Building Materials Segment’s two DIY & Garden Centres and 

Building Materials business units which also took account of the highly competitive environment. The outcome 

of this analysis established that the DIY & Garden Centre Business Unit was not in a position to earn its cost 

of capital in the long term in its current configuration and in this environment. With this in mind, BayWa made 

a decision to integrate the business by way of a joint venture with Semer Beteiligungsgesellschaft mbH into 

a value-preserving strategic partnership with the Hellweg home improvement chain. In contrast, the building 

materials specialist retail business has a viable market position and was already able to earn it its cost of capital 

in 2011 thanks to the implementation of strategic action. 

2,065.6 

million 

The Building Materials Segment accounts for around 22% of BayWa’s consolidated revenues. Of this amount, 27% 

is attributable to the DIY and garden centres and a little more than 73% to revenues generated by the building 

materials specialist retail business. 

Solution for DIY & Garden Centres 

The DIY & Garden Centres Business Unit operated a total of 115 centres autonomously in Germany, mainly in the 

southern part of the country, and in selected regions of Austria in 2011. In addition, there were almost 600 small 

centres in both countries and around 190 small centres in northern Italy operated by franchisees. The individual 

locations range from small, compact centres in rural regions across mid-sized centres with a local supply concept 

through to large flagship centres with a sales surface area of about 12,000 m 2 and a correspondingly broad-based 

product mix. The market environment is fiercely competitive as it is dominated by the large home improvement 

chains. For this reason, BayWa’s DIY & Garden Centres Business Unit was not in a position to earn its cost of capital 

in the long term. One major factor influencing the situation was the lack of critical mass resulting in the buyer power 

being too low to compete with the purchasing conditions of these large chains. This critical sales volume would not 

have been achievable through the business unit's own efforts without making extensive investments. 


6,698 

employees 

21.5 

% 


1 • The Company • Building Materials Segment 

Structure of the Building Materials Segment 

Segment Building Materials 

Business units Building Materials DIY & Garden Centres 

Products/ 

services 

Sales channels 

Through Group companies 

Civil engineering, extensions, construction, building 

services engineering, associated services 

Key operating data of the Building Materials Segment 

• 


Own operations 1 

Franchising 2 

BayWa Handels-Systeme-Service GmbH (BHSS), Munich 

AFS Franchise Systeme GmbH, Vienna 

IFS S.r.I., Bolzano 

Building, home, machinery & equipment, garden 

1 Spin-off of the DIY & Garden Centres in Germany effective 1 January 2012 

2 The know-how of the Building Materials and DIY & Garden Centres business units is marketed externally through franchising operations. 

Revenues of the Building Materials Segment (in € bn) 

2.0 

1.8 

1.6 

1.4 

1.2 

1.0 

0.8 

0.6 

0.4 

0.2 

0.0 

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Building Materials Business Unit DIY & Garden Centres Business Unit 

2008 2009 2010 2011 

Building Materials Business Unit 

Number of locations 263 271 257 248 

Surface area in m² thousand (all locations) 2,113 2,025 1,993 1,887 

DIY & Garden Centres Business Unit 

Number of locations 118 117 115 101 

Surface area in m² thousand (all locations) 280 287 274 308 

29

30 1 • The Company • Building Materials Segment 

2012 

Hiving off of DIY & Garden Centres 

effective 1 January 

BayWa’s building materials retail 

business stands for competence, 

quality and reliable service. 

Together with Hellweg, a strong DIY chain, as a partner, BayWa has developed a solution which, on the one hand, 

allows the business to continue to operate in a forward-looking manner while, on the other, permitting BayWa to 

withdraw in the medium term without detriment to the capital employed. This cooperation strengthens the buying 

power and the profitability, for instance through a joint point-of-sale and inventory management system, and 

closes the gap to the leading home improvement chains. With effect from 1 January 2012, the DIY and garden 

centre operations were transferred to the newly established BayWa Bau- & Gartenmärkte GmbH & Co. KG in 

which BayWa and Hellweg, via Semer Beteiligungsgesellschaft mbH, each hold a stake of 50% until 1 January 

2017. The second phase involves Hellweg raising its shares to 90%, with BayWa holding only 10%. Depending 

on clearly defined goals, BayWa will withdraw fully from the DIY and garden centre business either on 1 January 

2019 or, if an option to renew is exercised, on 1 January 2021 at the latest. As there is virtually no overlapping 

in the operations networks of Hellweg and BayWa, and as Hellweg already ranks among the top 10 German 

home improvement chains, this solution ensures that jobs in the region will be retained, along with the ongoing 

management and development of the business. The franchise business is not affected by the disposal and will 

continue to receive support from BayWa. 

Strategic measures in Building Materials 

Optimisation fully under way 

As Germany’s number two in the building materials specialist retail trade, BayWa has a good competitive position 

for earning its cost of capital itself in an otherwise strongly fragmented market. “Project 2015” is a measure 

designed to make a decisive contribution to improving the profitability of the building materials trade. It comprises 

15 individual projects, from supplier management across sales optimisation, performance-linked remuneration and 

employee satisfaction through to its own brands and process streamlining, concentrated under the responsibility 

of the respective managers. Another key area is the optimisation of building materials logistics through enhancing 

efficiency and minimising costs in transport and procurement logistics, inventory management and warehouse 

control. In addition, the locations network was reviewed in 2011. 

With 248 locations in Germany and Austria, BayWa is one of the largest nationwide full-line suppliers in the 

building materials specialist trade in the German-speaking countries. Moreover, some 530 locations are operated 

by franchise partners. The focus of the business is on the high-income regions of southern 

and western Germany and along the Rhine. BayWa is a full-line supplier in the building 

materials specialist retail business with great depth and width of the product mix for the 

construction industry and private customers. The offering ranges from construction steel and 

concrete, bricks and insulating materials through to windows, roof tiles and exterior plaster, 

supplemented by natural stone for the garden, tiles for use in the home through to a wide 

range covering interior design and fittings. Best selling products include ready-mix concrete, 

roof tiles, insulating materials and bricks. BayWa assumes the role of logistics partner in the 

delivery of these products, especially in the private customer business. In deciding on the 

product mix, BayWa’s strategy is to raise its market share through building on the product 

depth in a targeted way which will appeal to new customer groups. 


End-to-end services, such as building 

a photovoltaic rooftop system 

on a builder-owner home, takes the 

pressure off home builders. 

1 • The Company • Building Materials Segment 

Alongside trading in products, the Building Materials Business Unit stands out through its competent advisory 

services and extensive range of services for tradespeople, such as training in product application and marketing. 

Provider of end-to-end services 

BayWa’s building materials specialist retail business is in an ideal position to provide end-to-end services through 

its offering of solutions for the energetic refurbishment of buildings. In addition, the link to qualified tradesmen with 

the requisite profile enables BayWa to act as a supplier of quality products and as a system integrator. Moreover, 

BayWa takes on an agency function in recommending qualified tradespeople whenever needed and, in joint 

cooperation with them, advertises for the carrying out of construction work. During the construction phase, BayWa 

provides just-in-time building site logistics and, as a competent supplier, undertakes the energetic refurbishment 

of buildings, or recommends general contractors to carry out the order from one source. Furthermore, advice 

on government-funded programmes for private individuals as well as the preparation of heat images and the 

issuing of Energy Performance Certificates for properties are offered. The financing of renovation or refurbishing 

measures can be provided for private customers in the form of a renovation loan granted through cooperation 

with Schwäbisch Hall and the Bavarian Volksbanks and Raiffeisen banks. In addition, BayWa 

undertakes an agency role of bringing together interested parties for construction projects. 

The company has its own operations in the business of building services engineering that 

can fit sanitary installations and air conditioning systems, install photovoltaic systems, solar 

thermal systems and heat pumps for residential and commercial buildings as well putting in 

doors and windows and laying tiles. 


Against the backdrop of an ageing housing stock, rising requirements for energy efficiency 

and the growing use of renewable sources of energy, and with Germany as the largest single 

market in the EU, the German construction sector opens up attractive growth prospects from 

refurbishment and modernisation. Moreover, 2011 was the first year since the construction 

boom in the mid-90s when the number of residential building permits rose. Market structures 

in Austria are similar. In addition, business is based on a considerably broader footing through 

the franchise system. The use of resources within the Group has the potential to release 

synergies which will enhance profitability. 

31

32 1 • The Company • Goals and Strategy 

Goals and Strategy 

The primary goals of BayWa are to continue its path of expansion and raise its profitability in order to strengthen 

its leading role in the competitive environment. Against the backdrop of changing markets and growing 

globalisation, BayWa also needs to expand more swiftly in its international business in the future to remain 

successful in the long term. Apart from augmenting its existing core business in Germany and abroad, BayWa 

pursues the strategy of making inroads into new and promising areas to put its business on a broader basis. 

In steering this course of expansion, BayWa remains true to its conservative risk principles and practices a 

stringently responsible approach in the assessment of new risks. 

The changing face of BayWa 

BayWa has evolved into one of the leading suppliers of products and services in its core businesses of agriculture, 

energy and building materials through activities characterised by solidity, reliability and innovation in the respective 

markets. BayWa intends to safeguard this strong market position long term and strengthen it through organic 

growth and acquisitions. Dynamic developments in the market also trigger changes in the requirements placed on 

the BayWa Group. Against this backdrop, BayWa is constantly required to review and adjust the way it perceives 

itself. The challenges lie in finding the optimal solution to the deployment of strategic funds and in the response to 

establishing new technologies enabling active participation in shaping market changes. In 2011, BayWa gave fresh 

impetus to its future goals for growth and its strategy: In essence, this is an ongoing development in which tried-and 

tested elements are retained and supplemented by new aspects. In Germany, it has become virtually impossible to 

raise market shares in some fields of business to any great extent. Maintaining the strong position already achieved 

and, wherever possible, consolidating it further is the order of the day. In the medium to long term, however, the 

German market is set to contract, mainly due to demographic developments. Internationalising business in existing 

core activities has therefore become increasingly important. Moreover, BayWa intends to leverage its existing knowhow 

in the business units to develop new, high-margin businesses in its competences of trading and services. The 

expansion of operations can take place on a sound capital structure. BayWa draws the capital necessary for investing 

in growth from the operating cash flow generated by its core activities. Additional capital can also be released from 

selling real estate no longer essential to operations, for instance locations which, having been modernised and 

combined, are no longer essential to operations. In terms of its capital base, BayWa’s target is to achieve a long-term 

equity ratio of at least 30%. There may be individual years when this target may temporarily not be met owing to 

more major investments in growth. The focus in subsequent years, however, will be clearly placed on strengthening 

equity capital. The shareholders of BayWa are also to participate in this enhanced profitability. 

Core components of BayWa’s strategy 

The core components of BayWa’s strategy are constituted by the growth of the company, the internationalising of 

business, ongoing cost optimisation, business partnerships and cooperations, the value-oriented management of 

the company and the sustainability of its activities. 


The BayWa Group worldwide 

Europe 

USA 

1 • The Company • Goals and Strategy 

Spain 

United States New Zealand 

Agriculture Segment Energy Segment Building Materials Segment 

UK 


France 

Belgium 

Switzerland 

Germany 

Italy 

Czech Republic 

Austria 

Slovenia 

Croatia 

Poland 

Slovakia 

Hungary 

Serbia 

New Zealand 

33


In an environment characterised by 

accelerating internationalisation, 

BayWa has opted consistently for 

profitable growth. 

Growth of the company 

Growth is not an aim in itself. On the contrary, growth secures the ability to generate the funds for necessary 

investments in the long term as well. Moreover, as the enterprise grows so do economies of scale, which will 

ultimately serves to enhance profitability. In an environment of accelerating internationalisation, BayWa is 

increasingly confronted by significantly larger competitors in the individual market segments, which will test 

its strengths. As a listed company, BayWa also comes under the scrutiny of the capital 

markets and must fulfil the expectations of both its current shareholders and potentially new 

shareholders on achieving a competitive return. The directions for future expansion lie, on the 

one hand, in organic growth, specifically in ongoing development driven by the company’s 

own business in its present form, for instance through new products and services, and on the 

other in targeted acquisitions. 


Internationalisation of business 

In the past two financial years, BayWa has turned its attention more to tapping new markets 

and new business lines outside its traditional domestic markets. The BayWa Group intends 

to pick up the pace in future, especially in its agricultural and energy-related activities. On the 

one hand, BayWa is increasingly approaching the limits of growth in Germany and, on the 

other, the internationalisation of its business will make it more independent of developments 

in individual markets through geographical diversification. The influence of poor harvests due to weather conditions, 

or of changes in the legal framework conditions in the field of renewable energies in individual countries, on 

BayWa’s performance can be reduced. This gives BayWa even more stability. 

Ongoing cost optimisation 

An efficient organisation and ongoing cost optimisation are key factors for raising profitability. Efficiency is enhanced 

by concentrating central functions in units which span the Group and its business units and by leveraging synergies. 

In addition, BayWa has already achieved economies of scale in many areas, particularly in purchasing. 

Partnerships and cooperation with other enterprises 

Alongside BayWa’s strong roots in the cooperative federation, it already collaborates with numerous partner 

companies in activities such as logistics and sales. Such partnerships and cooperations will become increasingly 

important in the future. This is part of BayWa’s approach to developing additional areas of business and establishing 

new sales channels, which facilitates a swifter entry into new markets.

Trading in wood pellets is only one 

alternative from the wide range on 

offer for handling natural resources 

responsibly. 

1 • The Company • Goals and Strategy 

Value-driven company management 

The requirements placed by the capital markets and investors on BayWa have become significantly more 

demanding in recent years. The highest degree of transparency attainable and accurate information on the 

development of the company are prerequisites on which investors base their decisions. The environment and 

competitive conditions vary widely in the different businesses and regions where BayWa operates. Individual 

requirements on return depend on the type of business, its specific risks and the necessary capital. BayWa has 

introduced an economic profit valuation in order to make these requirements more transparent. This statement is 

now embedded in the corporate strategy. Value creation as defined by this valuation is achieved when return on 

capital employed has been earned. The operating assets committed in the respective operating unit, examples of 

which are real estate, a fleet of vehicles, inventories, receivables or liabilities, are calculated and compared with the 

respective unit’s operating results. Using this instrument allows BayWa to optimise the allocation of capital within 

the company based on transparent criteria and to raise the return on capital employed. 

Sustainability 

Conducting business sustainably is becoming increasingly important in the face of dwindling resources and the 

concurrent increase in global demand for food and energy. BayWa offers a broad range of products and services 

in its Agriculture, Energy and Building Materials segments which serve to support the responsible handling of 

resources. BayWa lives its commitment to the issue of sustainability not only in respect of its customers – it is also 

determined to make a contribution to securing resources for future generations while, at the 

same time, putting its own business on a forward-looking basis. BayWa targets sustainable 

growth through conducting business responsibly and striving to achieve a harmonious 

balance between business, the environment, and corporate social responsibility and 

commitment to society. 



BayWa’s aim is to raise revenues and profit and to become Europe’s leading agricultural 

trader. In its agribusiness, BayWa acts as an interface between almost all participants in the 

agricultural value chain. It is therefore directly affected by all structural and market-related 

changes. BayWa has fixed its sights firmly on structural change in the agriculture industry 

and business while, at the same time, being an active participant in shaping these changes. In 

agricultural trading, BayWa has often already secured a leading market position in the regions 

where it operates. New business can be garnered essentially through acquisitions. However, 

in other regions of Germany as well, substantial growth is often juxtaposed to anti-trust issues from the standpoint 

of a German and/or European market. Against this backdrop, it is necessary for BayWa to develop new markets 

and regions, also in its traditional core business segments, to secure the future growth of the company. Last but not 

least, the purchasing patterns of key customers are also subject to change: Large buyers of the food retail trade, 

for instance, expect their suppliers that offer a full spectrum in the individual product categories to ensure reliable 

deliveries of a seasonal range of products depending on the time of the year. BayWa must fulfil these expectations if 

it wants to hold its ground against growing competition. With the purchase of a majority stake in Turners & Growers, 

a fruit marketer based in New Zealand, BayWa has taken a major step in the internationalisation of its agribusiness. 

35


The conventional energy business 

has been supplemented by the 

expansion of renewable energies 

activities since 2009. 


The energy business is the second largest core segment of BayWa. In its traditional trading in fossil-based heating 

fuels, fuels and lubricants, the Group pursues the strategy of winning more market shares by taking over suitable 

competitors. Moreover, the offering is extended on an ongoing basis to raise the share of 

high-margin business by streamlining the portfolio, for instance, through entry into the energy 

service business. BayWa is reaping the benefit of the trend towards a more decentralised 

energy supply through the construction, installation and operating of central heating plants. 

Nonetheless, the importance of the traditional energy business will wane in the long term due 

to progress in energy conservation and the growing share of renewable energies in the energy 

supply mix. This analysis was the starting point for the Group’s entry into the renewable 

energy’s business in 2009, marked by the establishing of BayWa r.e. Since then this business 

line has expanded through organic growth and further acquisitions and generated revenues 

of around €306 million in 2011. In the medium term, the renewable energies activities are 

expected to deliver revenues of approximately one billion euros. As renewable energies 

will need government subsidies until they achieve grid parity, this business is subject to 

fluctuations caused by changes in the legal framework conditions. To limit the dependency 

on the markets in the individual countries and their subsidy policies, the renewable energies business was 

internationally oriented right from the start. BayWa r.e consistently pursued this approach in 2011 as well. Last but 

not least, by offering green energy and green gas, BayWa is ultimately developing additional new business lines. 


Far-reaching strategic measures were successfully implemented in the Building Materials Segment in 2011. A 

fundamental analysis of the business situation in the DIY & Garden Centres Business Unit showed that its own 

resources were insufficient to achieve the critical mass in a peer comparison and that it would therefore not be 

able to earn its cost of capital in the long term. Based on this analysis, BayWa found a solution in the Hellweg home 

improvement chain, a strong strategic partner with which the DIY and garden centre business can be retained and 

developed under a joint venture. The joint venture with Semer Beteiligungsgesellschaft, owner of the Hellweg 

Group, will secure jobs and strengthen the business’ competitive position while, at the same time, keeping the 

BayWa brand and the franchise business. BayWa will withdraw from the joint venture and, accordingly, from this 

retail business, by 1 January 2021 at the latest 

As Germany’s number two, BayWa has competitive potential in its Building Materials Business Unit. Nonetheless, 

additional endeavour is required to ensure that the cost of capital can be earned long term. The structures have 

been improved through the sale of five locations and the closure of another two in north Germany in the financial 

year 2011. Beyond this, the strategic focus is on optimising the network of locations and improving logistics and 

sales. 


1 • The Company • Conducting Sustainable Business 

Conducting Sustainable Business 

BayWa has always placed primary emphasis on sustainability, long before this became an important issue of 

public interest. With its roots in rural cooperative trading, BayWa has been closely connected and is familiar 

with the needs of farmers since it was founded. Conducting business on a sustainable basis and handling 

natural resources responsibly are of vital significance because agricultural land forms the basis of farming 

livelihood and is handed down from generation to generation. This livelihood can only be conserved and put 

to use in the long term through a sustainable – in the true sense of the word – approach to handling natural 

production factors. This is why sustainability has a long tradition in agriculture – and consequently also at 

BayWa. 

This self-perception has shaped BayWa’s value culture. Nowadays, however, the significance of sustainability goes 

far beyond its original meaning. At BayWa, sustainability is firmly anchored in the management of the company. 

Along with the traditional aspects of sustainability, however, BayWa incorporates environmentally ecological goals 

into entrepreneurial action which augments this concept: Sustainability in a wider sense encompasses all partners 

and parties associated with the company, in other words customers, suppliers, employees, shareholders and 

stakeholders in society. BayWa’s actions are aligned to long-term progress and securing the company as a going 

concern in harmony with social values. 

Economics and sustainability 

In economic terms, BayWa acts sustainably in striving for steady development – geared to success in the long 

term – to the benefit of all the stakeholders of the company, i.e. its customers, employees and shareholders. 

Surveys conducted show that BayWa’s customers have vested a great deal of trust in the company. At the same 

time, BayWa is perceived as a sustainable company. This view is based on the way the company uses natural raw 

materials, its local commitment and its long-term focus. Sustainability for the Group’s employees is defined by 

attractive and secure jobs, reflected in low fluctuation rates of 3.6% and an above-average length of service to the 

company expressed as a median of 15.3 years (pertains to BayWa AG, excluding its subsidiaries) as well as a high 

trainee ratio of 8.6% (all figures pertain to BayWa AG not counting its subsidiaries). Last but not least, employee 

numbers have risen by around 1,300 within the BayWa Group since 2003. Since its admission to the SDAX in 2003, 

BayWa’s track record of success for its shareholders is reflected in a growth of some 63% in consolidated revenues, 

which equates to an annual increase of around 6.3%. Consolidated profit virtually trebled over the same period. 

BayWa shareholders have participated in the dividend growth, from €0.24 in the financial year 2003 to €0.60 in the 

financial year 2011 – pending approval by the Annual General Meeting of Shareholders. 


37

38 1 • The Company • Conducting Sustainable Business 

One goal of the BayWa Foundation 

is to teach children about the value 

of a healthy diet and to show them 

what is involved in growing food and 

what the agriculture industry contributes 

to this process. The Foundation 

pursues this goal in Germany and in 

other countries. 

The environment and sustainability 

As regards environmental compatibility, BayWa has offered its customers sustainable products, for instance in 

the area of photovoltaics, energy-conserving refurbishment, or green fuels, such as wood pellets, for many years 

now. The product range has recently been extended to include green electricity and green gas. BayWa is also 

committed to conserving the environment in its actions: Over the past two years, rooftop photovoltaic systems with 

a peak power totalling around 5.7 megawatts have been installed on 47 buildings owned by BayWa, saving around 

2,300 tons of CO 2 emissions. Moreover, BayWa will gradually be switching its power supply to green electricity from 

2012 onwards. In terms of its vehicle fleet management, BayWa, in partnership with Athlon Car Lease Germany, has 

set itself the goal of minimising CO 2 emissions from its fleet. Having signed a declaration of intention of achieving 

the “Cleaner Car Contracts” Gold Standard before the end of 2012, the BayWa fleet will have fulfilled the climate 

targets before the respective EU directives come into force. The objective of the Gold Standard for vehicle fleets is 

to lower the average CO 2 emission of the whole fleet of new cars to120 grams of CO 2 per kilometre in 2012. 

Corporate social responsibility 

BayWa takes account of social aspects within the company by, for instance, subsidising the cost of childcare 

for young families. On the one hand, this promotes the work-life balance while, on the other, facilitating a swift 

return to working life of women in particular. Another example of BayWa’s commitment to society is the BayWa 

Foundation (www.baywastiftung.de) which promotes educational projects in Germany and abroad. For instance, 

the Foundation educates children and young people in schools in Germany about a healthy and balanced diet 

and raises their awareness of the agriculture industry as a food producer. Young academics are also promoted: 

BayWa supports many students from the Weihenstephan-Triesdorf University of Applied 

Science and the Technical University of Munich’s Weihenstephan Center of Food, Land 

Use and the Environment in the context of grants from the German government under its 

programme for funding young people. In its international activities, the BayWa Foundation 

provides aid in the form of sustainable projects under the slogan of “Helping Others to Help 

Themselves”, especially in Romania and Tanzania. Here the emphasis is on project results 

which do not simply dissipate but, instead, lay the foundation for better, sustainable and longterm 

development prospects. 


What is special about the BayWa Foundation is that any donations made flow directly into 

projects, as BayWa AG assumes the administrative costs. Moreover, the Group doubles any 

amount donated to the Foundation, enabling as many projects as possible to go ahead.

BayWa and the 

Capital Market 

We are a strong partner to our 

customers, employees, investors 

and suppliers. 

(Taken from BayWa’s Corporate Guidelines) 

Section 

Page 

41 The Share 

45 Investor Relations 

2

From –––––––––––––––––––––––– 

€ 0.32 

to –––––––––––––––––––––––– 

€ 0.60 

––––––––––––––––––––––––––––––– 

The dividend proposal for the Annual 

General Meeting of Shareholders is 

60 cents. BayWa share dividend has 

therefore almost doubled since 2007, 

up from 32 cents. 

€ 220 million 

BayWa used the attractive conditions in the capital market to issue 

a bonded loan of some €220 million in the fourth quarter of 2011. 

This measure widens the Group’s financial scope and smooths the 

maturity profile. 

Greater transparency, 

greater interest 

As a listed company, BayWa must fulfil the 

requirements of the capital markets. This not 

only goes for achieving a competitive return 

for our investors but also for maintaining high 

transparency and communication standards. 

With this in mind, our Investor Relations 

activities were stepped up in 2011. Moreover, 

the number of analysts regularly covering 

BayWa has risen again. 

35% 

Around 35% of the BayWa Group’s 

employees have invested in the 

company through employee shares.

2 • BayWa and the Capital Market • The Share 

The Share 

Long-term price performance of the BayWa share (in €) 1 

The German stock market closed the year 2011 having shed nearly 15% of its value measured against the 

DAX as the leading index. The BayWa share was also unable to decouple from this general market trend. 

BayWa continued to extend the scope of its Investor Relations activities in 2011. The number of banks 

conducting regular coverage of BayWa rose again. In the autumn of 2011, BayWa took advantage of the 

attractive capital market environment and issued a second bonded loan. 

The slowdown in growth and the debt crisis puts pressure on the 

stock exchanges 

The start to the year 2011 was characterised by the recovery in the global economy holding steady. Expectations 

of the economic development in North America and Western Europe in particular were still largely positive. In 

the second quarter, however, sentiment darkened. The tsunami catastrophe in Japan, political unrest in North 

Africa and in the Near East and, last but not least, the debt crisis in Europe and in the US considerably dampened 

expectations of economic development. The Euro Stoxx 50 lost almost 18% of its value in 2011. 

The German stock market’s development mostly mirrored the trend in other global stock markets. Through to the 

beginning of May, the DAX climbed by around 9% to 7,528 points. The deterioration in the debt crisis of a number 

of euro countries, the downgrading of the countries in question, along with major banks, triggered a flight from 

risky equities as the year progressed. By mid September, therefore, the DAX had lost 2,455 points which equates to 

almost 33%. The moderate rally in the fourth quarter was also unable to make up for lost ground. As a result, the 

DAX closed the year 2011 at 5,898 points, which is around 15% down compared with the year-earlier level. The 

MDAX also sustained losses in 2011, closing with a minus of approximately 12%. 

Price performance of the BayWa share 

In comparison to the stock market year 2010 when the BayWa registered share with restricted transferability closed 

at its almost highest level for the year, the share had already peaked by 6 January in 2011 when it stood at €35.01. 

The lifting of the grain embargo in Russia and the announcement of considerable tracts of land freed up for the 

cultivation of maize and wheat in the US, combined with the significant downturn in grain prices, put an end to the 

boom in the agricultural sector which had prevailed since mid-2010. In addition, general factors in the market, such 

as anxiety about the global economy slipping back into recession and the breakup of the currency union, exerted 

a negative influence. 

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

High 6.50 13.70 15.40 18.35 26.29 47.71 44.50 26.90 35.04 35.01 

Low 4.60 4.60 11.62 12.70 16.51 23.05 17.92 14.15 24.95 24.05 

Closing price 5.20 13.21 13.40 16.20 24.28 34.02 25.80 25.16 35.04 27.30 

Market capitalisation (in € million) 176.3 443.4 452.9 548.6 823.2 1,154.1 874.4 855.9 1,193.5 937.7 

1 XETRA prices: registered share with restricted transferability (sec. ident. no. 519 406); market capitalisation: both classes of shares (sec. ident. no. 519 400 and sec. code no. 519 406) 


41

42 2 • BayWa and the Capital Market • The Share 

43,800 

shares per trading day 

Employee share discount of 

40% 

As a result, BayWa’s share price entered a steep downtrend and fell to its lowest point of €24.05 for the year on 

8 August. The rally in the fourth quarter saw the BayWa share initially rise above the average for the MDAX – by 

6 October, it had climbed to € 32.82 – and then subsequently trend sideways. In December, however, the share lost 

around 15% and closed the year 2011 at €27.30. In a year-on-year comparison, the share therefore shed 22.1% 

of its value, and market capitalisation had declined by almost €256 million to approximately €938 million by yearend 

2011. 

The closing price for registered shares not subject to restricted transferability stood at € 30.00 on 30 December 

2011. Compared with a year ago, when the share price came to € 33.80, this represents a decline of 11.2%. 

The average trading volume of the BayWa bearer shares with restricted transferability climbed from around 27,900 

in 2010 to some 43,800 shares per trading day in the reporting year. This corresponds to an increase in the 

volume of 57.0% compared with the average achieved in 2010. 

Positioning of the BayWa share in the MDAX 

The BayWa registered share with restricted transferability is traded on the regulated markets in the Frankfurt and 

Munich stock exchanges, in the XETRA trading system, as well as OTC on the stock exchanges of Berlin, Bremen, 

Düsseldorf, Hamburg and Stuttgart. The share fulfils the international transparency standards prescribed by 

Prime Standard. The BayWa share was admitted to the MDAX with effect from 21 September 2009, which led to 

an increase in the number of analysts regularly covering BayWa AG. The following banks regularly analysed and 

assessed BayWa AG in the financial year 2011: 

Rating by the banks 


As per Rating 

Bankhaus Lampe 28/02/2012 Buy 

Berenberg Bank 16/01/2012 Buy 

Close Brothers Seydler Research AG 20/01/2012 Buy 

Commerzbank AG 01/03/2012 Accumulate 

Deutsche Bank AG 10/11/2011 Hold 

DZ Bank AG 01/03/2012 Buy 

Equinet AG 28/11/2011 Accumulate 

Hauck & Aufhäuser 24/01/2012 Buy 

MainFirst Bank AG 13/10/2011 Neutral 

M. M. Warburg 01/03/2012 Buy 

Steubing AG 10/01/2011 Buy 

UniCredit Bank AG 01/08/2011 Buy 

Employees use Employee Share Scheme 

For many years now the Employee Share Scheme has promoted the entrepreneurial thought and action of the 

workforce. Moreover, it allows employees to participate in the development of the BayWa share. In the summer of 

2011, employees of BayWa AG and its Group companies were again given the opportunity of purchasing BayWa 

shares under special conditions. Within the limits permitted under the law on wages and income tax, those entitled 

to the shares of BayWa AG were able to subscribe at an employee discount of 40%. All in all, 120,789 registered 

shares with restricted transferability (2010: 118,691) were issued as part of this share scheme. These shares are 

subject to a prohibition on sale (company lock-up period) until 31 December 2013. The capital increase from 

Authorised Capital was entered into the Commercial Register on 19 October 2011. The company received funds 

totalling €2,042,541.99 from this measure.

2 • BayWa and the Capital Market • The Share 

Share price performance from 01/01/2011 to 31/12/2011 – sec. ident. no. 519 406 (in €) 

35 

30 

25 

20 

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 

Shareholder structure of BayWa AG on 31/12/2011 

BayWa share key data 

35.15% 

Free float Raiffeisen Agrar Invest GmbH Bayerische Raiffeisen-Beteiligungs-AG 

Registered shares with restricted transferability 


€27.30 

Closing price on 30/12/2011 

39.73% 

25.12% 

Registered shares not subject to restricted 

transferability 

Securities ident. no. 519 406 519 400 

ISIN DE 0005194062 DE 0005194005 

Ticker symbol BYW6 BYW 

Reuters BYWGa.DE BYWG.DE 

Bloomberg BYW6:GR BYW:GR 

Stock market segment Regulated Market/Prime Standard Regulated Market/Prime Standard 

Stock exchanges 

Frankfurt, Munich, XETRA 

OTC in Berlin, Düsseldorf, Hamburg 

and Stuttgart 

Frankfurt, XETRA 

Index MDAX – 

Number of shares 32,979,980 + 120,789 recently issued 1,243,251 

35 

30 

25 

20 

43

44 2 • BayWa and the Capital Market • The Share 


in share capital 

Allocation of share capital 

The share capital of BayWa comes to €87,920,691.20. Compared with the previous year, liable capital rose by 

€309,219.84 owing to the subscription of employees shares. The share capital comprises 34,344,020 registered 

shares, divided into two classes of shares: owing to their number of 33.1 million, the more liquid registered shares 

with restricted transferability (securities identification no. 519 406) and 1.2 million in shares not subject to restricted 

transferability (securities identification no. 519 400). The latter were largely created through issuance in the context 

of business combinations. The trading volume of this “smaller” category of shares is very limited owing to their low 

number. 

Significant increase in dividend 

The Board of Management and Supervisory Board will put forward a proposal to the Annual General Meeting of 

Shareholders to pay a dividend of €0.60 per dividend-bearing share. The intention of the company management 

and supervisory bodies in distributing dividend is to enable the shareholders to participate in the positive 

development of the BayWa Group in 2011. BayWa thus continues to uphold the steady, earnings-oriented dividend 

policy pursued in recent years. In relation to the BayWa Group’s net income, adjusted for minority interest, the 

payout ratio – subject to approval by the Annual General Meeting of Shareholders – therefore comes to 40.1% 

compared with 33.8% in 2010. Measured against consolidated net income, the payout ratio stands at 29.4% 

(2010: 25.5%). 

Shareholder structure remains stable 

The shareholder structure of BayWa AG pertaining to the registered shares subject to and not subject to restricted 

transferability at year-end 2011 was as follows: 

As per 31 December 2011, Bayerische Raiffeisen-Beteiligungs-AG, Beilngries, held 35.15% of the shares in 

accordance with their entry in the share register. 

Raiffeisen Agrar Invest GmbH headquartered in Vienna held 25.12% of the voting rights. 

The proportion of free float stood at 39.73% on the reporting date. 


Another increase in 

analyst coverage 

210 

individual meetings in 2011 

2 • BayWa and the Capital Market • Investor Relations 

Investor Relations 

Widespread uncertainty and caution in the capital markets has increased the investors’ need for information. 

The raft of increasingly stringent regulations also necessitates expert knowledge and communication skills. To 

take account of these requirements the Investor Relations activities were stepped up in terms of both direct 

and indirect communication. The range of information on offer was supplemented by the BayWa Fact Book, 

which met with great interest. Another step in this direction was to add additional functionalities to the Investor 

Relations webpages. In this way, BayWa continues to position itself as a reliable point of contact ready to 

engage in dialogue at all times. 

Communication with the capital markets 

The aim is to consistently provide the various stakeholders in the capital market with information on the Group’s 

performance as well as on its long-term outlook. Open and reliable communication with analysts, institutional 

investors, private investors and the financial press deepens the understanding of BayWa’s business model which, 

in turn, fosters the trust of the capital market in the company. Beyond this, the intention is to enhance the way in 

which the company is perceived and to raise the awareness of the BayWa share through addressing new groups of 

investors in a targeted way. 

All financial reports and company presentations are available in German and English on the company’s website 

under www.baywa.com/investor_relations/ or www.baywa.com/en/investor_relations/ for downloading. 

There was another increase in the number of analysts conducting regular research on BayWa AG: Berenberg Bank, 

Hauck & Aufhäuser, Close Brothers Seydler Research AG and MainFirst Bank AG took up coverage of the BayWa 

share in 2011. 

In addition, BayWa AG is a member of the DIRK, a German investor relations association. DIRK has more than 

300 members and develops standards for communication between participants in the capital market. As part of 

its Investor Relations activities, BayWa regularly takes part in presentations, discussion forums, workshops and 

conferences organised by DIRK. This ensures that the company is informed about current trends and requirements 

in the market and new developments on the legal front at an early stage and appropriate action taken. 

Investor Relations activities 

The highlights of BayWa’s Investor Relations activities in 2011 were three telephone conferences which took 

place when the respective quarterly figures were released and the annual Analysts’ Conference. In addition, there 

was direct contact with analysts and institutional investors, both in the form of one-to-one discussions as well as 

at investor conferences, which is an important medium for explaining the prospects of the company in detail. This 

interaction enables an ongoing comparison between the company’s standpoint and how it is perceived externally. 

The assessment of capital market participants on developments, both in the respective sectors and concerning the 

company, is also particularly valuable to BayWa. 

In line with its tenet of enhancing transparency and strengthening communication, particularly in phases of volatility 

in the stock markets, BayWa raised the number of individual meetings with fund managers and financial analysts 

in the reporting year by arranging more than 210 meetings (2010: 203). Flanking the fostering of contact with 

investors in Germany, BayWa held a number of road shows and visited investors in the US, London, Vienna, Paris, 


45

46 2 • BayWa and the Capital Market • Investor Relations 

Capital Market Day attended 

by around 30 financial experts 

from Germany and other countries 

Zurich and several Scandinavian countries. Moreover, BayWa took part in the following capital market conferences 

in 2011: 

Cheuvreux German Corporate Conference, January 2011, Frankfurt am Main 

HSBC Small & Mid Cap SRI Conference, February 2011, Frankfurt am Main 

Close Brothers Seydler Bank AG Small & Mid Cap Conference, February 2011, Frankfurt am Main 

Bankhaus Lampe Capital Market Conference, April 2011, Baden-Baden 

Münchner Anlegerforum (Investment Forum), April 2011, Munich 

Cheuvreux Pan-Europe Conference, May 2011, London 

Close Brothers Seydler Bank AG Small & Mid Cap Conference, May 2011, London 

Commerzbank Corporate Day, June 2011, London 

Steubing Investor Conference, June 2011, Frankfurt am Main 

6th Investor Forum, June 2011, Augsburg 

UniCredit German Investment Conference, September 2011 

German Corporate Forum, October 2011, London 

DZ Bank Conference, November 2011, Frankfurt am Main 

German Equity Forum, November 2011, Frankfurt am Main 

Capital Market Day 

BayWa’s Capital Market Day, which has been an integral part of communication with investors and analysts for some 

years now, took place in October 2011. The focus of the Day was on the Agricultural Equipment Business Unit. 

Around 30 financial experts from Germany and abroad attended the two-day event at an Agricultural Equipment 

location in Leipzig where they had the opportunity of talking directly to representatives of BayWa’s management 

on the strategic direction of the Group and its business prospects. A tour of the sales outlet enabled the guests 

to gain an insight into daily operations and the current trends in the agricultural equipment business. Another 

program highlight was a visit to a farm run by a BayWa customer who explained the challenges facing farmers from 

a customer standpoint. Another increase in attendance numbers showed the positive response of analysts to the 

event. 

BayWa’s debt instruments 

The BayWa’s external financing structure has been mainly aligned to the short term owing to the strong seasonal 

fluctuations in financial resources committed, particularly as regards working capital. The year 2010 was the first 

time that BayWa issued bonded loans for the medium and long-term financing of growth. The response of the 

market to these bonded loans was very positive. 

In the fourth quarter of 2011, BayWa made the decision to tap the favourable conditions in the capital market by 

issuing another bonded loan which was offered with terms of five and seven years. Depending on investor interest, 

the two tranches bear interest either at a floating rate based on the 6-month Euribor, or at a fixed rate based on the 

mid-swap rate. As the original loan volume of €100 million was oversubscribed multiple times BayWa was able 

to issue almost €220 million in total at the lower end of the range. The new bonded loan serves to diversify the 

financing portfolio and smooth the maturity profile of liabilities. Furthermore, the combination of fixed and floating 

rates reduces the interest rate risk. The funds received were used to repay current liabilities without these credit 

lines being terminated. 

Bonded loan 2011 


Nominal loan 

amount in € m Maturity Interest 

Bonded loan 1 33.000 12/12/2016 6-month Euribor plus 1.20% 

Bonded loan 2 77.500 12/12/2016 3.20% 

Bonded loan 3 40.500 12/12/2018 6-month Euribor plus 1.40% 

Bonded loan 4 67.500 12/12/2018 3.77%

Management Report 

on the Company and 

the Group 

We are a sound, dependable and 

innovative company. 

(Taken from BayWa’s Corporate Guidelines) 

Section 

Page 

49 Summary of Performance in 2011 

51 Business and General Conditions 

58 Earnings, Financial Position and Assets 

69 Opportunity and Risk Report 

74 Significant Events after the Reporting Date 


77 Outlook 

3

Excellent performance 

Agriculture: €4.3 bn 

Energy: €3.1 bn 

Building 

Materials: €2.1 bn 

Other 

Activities: €0.1 bn 

The BayWa Group delivered an excellent 

performance in the financial year 2011. 

It focused on internationalising business 

and expanding activities in the field of 

renewable energies. 

From (2009) ––––––––––––––––––––––––––––––––––––––––––––––– 


to (2011) ––––––––––––––––––––––––––––––––––––––––––––––– 


–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 

BayWa r.e’s revenues: swift development of the Renewable Energies business line. 

€ 9.6 

billion 

Consolidated revenues 

rose to €9.6 billion 

= an increase of 21.3%. 

122 

companies 

The BayWa Group, including BayWa AG, comprises 

122 companies. Compared with 2010, another 

35 companies have been included in the group of 

consolidated companies as per 31 December 2011: 

23 international and 12 German.

Agriculture Segment’s revenues 

up by 21.5% 

Revenues of the Energy Segment 

climb by 31.9% 

3 • Management Report on the Company and the Group • Summary of Performance in 2011 

Management Report on the 

BayWa Group in the Financial Year 2011 

I. Summary of Performance in 2011 

The BayWa Group continued to develop extremely well in the financial year 2011. The main emphasis was on 

internationalising business and expanding activities in the field of renewable energies. Revenues grew in all of 

BayWa’s segments. In terms of earnings before interest and tax (EBIT), BayWa also outperformed the year-earlier 

level in all three segments. 

The development of business in the Agriculture Segment was impacted by the lower harvest volume in a number 

of its products, especially grain. Coupled with demand exceeding the actual harvest volume, this depleted the 

inventories of several key agricultural commodities. Consequently, the prices of agricultural produce were 

significantly higher than in the previous year. Operating resources reported a year-on-year increase in the sales 

volume of fertilisers and crop protection, with feedstuff consumption also rising. Higher prices commanded for 

operating resources did not dampen the volume of demand as there was an improvement in produce prices. In the 

fruit business, the volume of dessert fruit sold was significantly above the year-earlier level when hail damaged the 

harvest in a number of regions. At the same time, produce prices remained stable for the most part. The agricultural 

equipment business benefited from record investments by farmers. The uptrend in farmers’ income encouraged 

a correspondingly high propensity to invest. Another fundamental factor of influence is that farming larger areas 

of land necessitates a greater use of agricultural equipment. Deploying state-of-the-art, process-controlled large 

machinery ultimately enhances efficiency while cutting costs, making such investments profitable. The total 

revenues of the BayWa Group’s Agriculture Segment came to €4,258.9 million in the financial year 2011, which 

corresponds to a growth of €753.8 million, and is 21.5% higher than in the previous year. Compared with 2010, 

EBIT rose by 22.1% to €78.0 million, up from €63.9 million in the reporting year. 

In the conventional energy business of the Energy Segment, volumes were raised in 2011 across all product 

segments, namely heating oil, wood pellets, fuels and lubricants, boosted especially by acquisitions. High prices 

for crude oil, however, had a hampering effect on demand patterns in the heating sector which caused margins 

to narrow in comparison with 2010. The filling station and lubricants business benefited from the persistently 

favourable economic environment. Revenues generated by the conventional energy business stood at 

€2,805.9 million, which is 33.4% up from the year-earlier figure. This increase was, however, driven primarily by the 

high price of crude oil. At the same time, EBIT declined by 31.7% to €6.3 million due primarily to narrower margins 

in the heating oil business. In the renewable energies business, revenues climbed by 20.1% to €306.0 million 

through organic growth and acquisitions and a greater business volume in all three businesses of photovoltaics, 

wind power and biogas plants. EBIT advanced by 28.5% to €27.1 million. The total revenues of the Energy Segment 

amounted to €3,111.8 million, thus posting a growth of 31.9% over the year-earlier figure. The segment’s EBIT rose 

by 10.1% to €33.4 million. 


49

50 

Growth in Building Materials’ 

revenues of 8.5% 

Proposal to raise dividend 

to 0.60 cents 

3 • Management Report on the Company and the Group • Summary of Performance in 2011 

The Building Materials Segment performed well in the financial year. Its building materials retail trade benefited 

throughout the whole year from good weather conditions and a general recovery in the construction sector. 

Alongside the sharp upturn in residential building, brisker non-residential construction activities also boosted 

demand for building materials. Public-sector building, however, remained at the year-earlier level. Against the 

backdrop of this environment, the Building Materials Business Unit lifted revenues by 10.0% to €1,508.5 million. 

EBIT was raised by €16.1 million to €24.7 million. The economic uptrend and the ongoing improvement in the 

consumer sentiment of private households contributed to brisk business in the DIY and garden centres. Moreover, 

the reopening of locations upon completion of refurbishment also boosted revenues. The business unit’s revenues 

climbed by 4.7% to €557.1 million, and EBIT grew by 20.5% to €11.8 million. Factors exerting a positive impact 

on profit were, in particular, the successful restructuring measures and the non-recurrence of the associated 

expenses incurred in 2010. All in all, the Building Materials Segment achieved an increase in revenues of 8.5% to 

€2,065.6 million. EBIT nearly doubled in the process, advancing from €18.3 million a year earlier to €36.5 million 

in the financial year 2011. 

The BayWa Group raised its overall revenues by €1,682.7 million, which is 21.3%, to €9,585.7 million in the financial 

year 2011. In comparison with the figure posted in 2010, EBIT climbed by 17.5% to €151.4 million. Earnings before 

tax rose to €97.7 million in the year under review, which corresponds to a year-on-year increase of 12.1%. The 

shareholders of BayWa AG are also to be given the opportunity of participating in this performance. Consequently, 

the Board of Management and Supervisory Board will put forward a proposal to the Annual General Meeting of 

Shareholders to raise the dividend to €0.60 per share. 


Around 3,000 sales locations 

in 17 countries 

Agriculture Segment: share of 

44% in consolidated revenues 

Energy Segment: share of 32% in 

consolidated revenues 

Building Materials Segment: share of 

22% in consolidated revenues 

3 • Management Report on the Company and the Group • Business and General Conditions 

II. Business and General Conditions 

Group structure and business activities 

BayWa AG was established in 1923 and has its principal place of business in Munich. Its business activities comprise 

wholesale and retail trading, and logistics, with the associated advisory and general services in the sectors of 

agriculture, energy and construction. Business activities have therefore been divided up into the three segments 

of Agriculture, Energy and Building Materials. The segments’ core competences reside in trading and logistics 

services, supplemented by an extensive offering of specially customised advisory and general services. Rooted in 

cooperative rural trading and with its firm footing in rural regions, BayWa has evolved into one of Europe’s leading 

trading and logistics groups through steady growth and by consistently extending its range of products and services. 

Including its franchise and partner companies, the Group has around 3,000 sales locations in 17 countries. Its home 

markets are in Germany and Austria. Moreover, in the process of steady growth defined by its strategic guidelines, 

BayWa has entered new markets in the United States and in the UK. Furthermore, the first milestone for entry into 

New Zealand has been set with plans for the acquisition of Turners & Growers. 

The BayWa Group 


Revenues 

(in € million) 

51 

Employees 

(annual average) 

Agriculture 4,258.9 6,859 

Energy 3,111.8 1,387 

Building Materials 2,065.6 6,698 

Other Activities 149.4 647 

Traditionally, the BayWa Group generates the largest part of its revenues from the agriculture and food industry. The 

Agriculture Segment contributed approximately 44% to consolidated revenues in 2011. BayWa is one of Europe’s 

largest full-line suppliers in the agriculture sector and trades some of its products worldwide. The Agricultural Trade 

Business Unit collects, stores and sells plant-based products, from the field through to the food industry, and trades 

in agricultural resources such as seed, fertilisers and crop protection as well as feedstuff for animal husbandry. In 

its Fruit Business Unit, BayWa operates as a full-line supplier to the food retail and wholesale industry in Germany. 

Subject to the approval by New Zealand’s anti-trust authority, the company will be focusing its international business 

increasingly towards Asia through the acquisition of Turners & Growers, a company based in New Zealand. The 

Agricultural Equipment Business Unit has an end-to-end range of indoor and outdoor equipment for agriculture 

and forestry as well as for local authorities and commercial customers. The business unit has a tight network of 

workshops as well as mobile service vehicles offering maintenance and repair services and selling replacement 

parts. 

The Energy Segment, which makes up around 32% of consolidated revenues, sells mainly heating oil, diesel and 

Otto fuel, along with lubricants and wood pellets through its business in conventional sources of energy in Bavaria, 

Baden-Württemberg, Hessen, Saxony and Austria. The segment also operates its own network of fuel stations. The 

Group’s activities in the field of renewable energies are combined under BayWa r.e. BayWa specialises in trading, 

project development, as well as the construction and subsequent sale of turnkey solar plants, wind farms and biogas 

plants in this business. As part of implementing a two-pronged diversification strategy to reduce its dependency 

on individual sources of renewable energy and local markets, BayWa r.e’s business, with activities in all important 

European markets and in the US, is conducted on a much greater international scale compared with conventional 

energy carriers. 

The Building Materials Segment accounts for around 22% of consolidated revenues. The BayWa Group is 

Germany’s number two in the building materials retail business and ranks among the leading suppliers, also in 

Austria. Since the start of 2012, the Group has operated DIY and garden centres, concentrated mainly in rural 

regions, largely via newly established BayWa Bau- & Gartenmärkte GmbH & Co. KG. As a joint venture with Semer 

Beteiligungsgesellschaft GmbH this company joined the Hellweg home improvement chain at the beginning of 

2012. As part of this transaction, the DIY and garden centres were recognised at equity with effect from 

1 January 2012. BayWa plans to fully withdraw from the joint venture by 1 January 2021 at the latest. Moreover, 

BayWa is an important franchisor in the building materials retail and the DIY and garden centre business.

52 

108 fully consolidated companies 

in the BayWa Group 

Stronger internationalisation 

of business 

Sustainable business in all 

segments 

Equity ratio target of 30% 

Value-oriented management based 

on economic profit 


BayWa AG heads up business operations in three segments, both directly and through its subsidiaries which 

are included in the group of consolidated companies. In Eastern Europe, Spain, the UK, Italy, France, Austria, 

New Zealand (planned) and the US, the local subsidiaries are managed independently. Besides BayWa AG, the 

BayWa Group comprises 107 fully consolidated companies. Furthermore, 14 companies were included at equity 

in the financial statements of BayWa. 

Corporate goals, strategy, management and control 

BayWa’s primary corporate goals are to continue charting its growth path and raising its profitability with a view to 

sustainably strengthening its competitive position as one of the leading suppliers of products and services in the 

segments of agriculture, energy and building materials. 

The key components of BayWa’s strategy are derived from its corporate goals: 

Growth of the Group 

Internationalisation of business 

Ongoing cost optimisation 

Partnerships and cooperations with other enterprises 

Value-driven management of the company based on economic profit 

Sustainability of the Group’s activities 

BayWa intends to achieve its goal of growth through organic expansion, promoted by the ongoing development of 

existing activities and through developing new business lines in Germany and abroad as well as, if conditions are 

favourable, acquisitions. In the face of changing markets and ongoing globalisation, the swifter internationalising of 

its business, which will make it more independent of developments in the individual markets through geographical 

diversification, is of growing significance for the Group’s long-term success. The BayWa Group intends to accelerate 

this process, especially in its agricultural and energy-related activities. This approach will lessen the impact of 

external factors, for instance, of poor harvests due to weather conditions or of changes in the legal framework 

conditions in the field of renewable energies in individual countries, on BayWa’s performance. All this adds up 

to even more stability for BayWa. Moreover, BayWa is tapping new business opportunities through partnerships 

and cooperations with other companies. Furthermore, it strives to conduct business on a sustainable basis in all 

areas. By doing so, the company intends to make its contribution to securing resources for future generations while, 

at the same time, putting its own business on a forward-looking basis. BayWa targets sustainable growth through 

conducting business responsibly and endeavouring to achieve a harmonious balance between business, the 

environment, and corporate social responsibility and commitment to society. 

The Group’s expansion will result in economies of scale which, combined with stringent cost management, will raise 

profitability. Strategic measures are concentrated on enhancing the efficiency of the locations, and streamlining 

processes and workflows, as well as making more intensive use of existing sales and distribution structures. 

On the financing front, the focus is on an efficient management of working capital. By securing longer-term 

financing for part of its working capital through issuing bonds and loans, BayWa has taken account of changes in 

business structures which have arisen especially through growth in the business of BayWa r.e. As in the past, BayWa 

will ensure a balanced capital structure with a medium to long-term equity ratio target of 30%. 

The management and control of the business units are carried out using strategic and operational parameters 

and by applying a value-driven management approach based on economic profit. This approach will support the 

medium- and long-term streamlining of the portfolio and the strategic improvement of capital allocation within the 

Group. Economic profit shows whether the ratio between the operating profit achieved and the risk-adjusted cost of 

capital is appropriate, i.e. whether the segment has earned its cost of capital. Return on average capital invested in 

the segments is calculated by applying the risk-weighted cost of capital. The return on invested capital (ROIC) of the 

segments is then measured against the respective cost of capital. There is economic profit if the return on invested 

capital is higher than the cost of capital. 

The Agriculture and Energy segments generated an economic profit in the financial year 2011 and earned their cost 

of capital. All in all, the Building Materials Segment delivered a positive contribution to profit but was unable to fully 

cover the underlying cost of capital. This shortfall is due to the DIY & Garden Centres Business Unit where the result 

was not sufficient to deliver a return on average invested capital appropriate to the commercial risk. By contrast, the 

Building Materials Business Unit met the target. 


Leading supplier of German 

dessert fruit 

Agricultural equipment and 

machinery for agriculture, forestry 

and municipalities 

Conventional energy business with 

fossil-based sources of energy 

Renewable energies business in 

solar, wind, and biogas 


Services, products and business processes 

BayWa’s logistics competence is especially important in the collection, storing and selling the harvest in its 

agribusiness. Buying up the harvest necessitates a sophisticated transport system and a high level of storage 

capacities, as well as the seamless integration of goods delivery, processing, garnering and produce maintenance. 

During the subsequent phase when the harvest is sold, knowledge of both local and global supply and demand 

conditions is essential for a sound and informed assessment of market developments, especially in times of high 

price volatility. Upstream and downstream from the harvest activities involve the supplying of farmers with seed, 

operating resources and advisory services for cultivation, as well as the sale and servicing of agricultural equipment, 

which means that BayWa’s Agriculture Segment remains in close contact with its customers from the agricultural 

industry throughout the year. 

In its fruit and vegetable operations, BayWa is a leading supplier of German dessert fruit to food retailers and, 

through its ten locations, the largest single marketer of German dessert fruit and the largest supplier of organic 

pome fruit. In addition, the Fruit Business Unit collects, stores, sorts, packages and sells the produce as a marketer 

under contract to customers in Germany and abroad. Frucom, the business unit’s Hamburg-based subsidiary, 

and the planned acquisition of Turners & Growers headquartered in New Zealand, will give BayWa an entry to the 

international fruit business. As a full-line supplier, it will be in a position to supply food retailers and wholesalers with 

fruit the whole year long. Furthermore, the company’s existing sales and distribution structures in its international 

companies will open up additional sales opportunities for German fruit in international high-growth markets. 

The Agricultural Equipment Business Unit is a full-line supplier of agricultural machinery, equipment and facilities. 

The product portfolio for cultivation comprises tractors, loaders and transport vehicles, machinery for soil cultivation 

and seed, equipment for spreading crop protection agents and fertilisers, all types of harvesting machinery, 

special machinery for speciality crops such as wine, hops, vegetables and fruit, as well as irrigation systems. 

Stabling equipment and machinery covers a broad product range, from milking and cooling systems through to 

facilities for mixing feedstuff and automated feed distribution systems. In grain cultivation and fodder products, the 

offering comprises drying and cleaning equipment as well as storage equipment right through to conveying and 

mixing systems. Furthermore, the Agricultural Equipment Business Unit offers versatile multi-purpose municipal 

vehicles, road-sweeping vehicles, mobile facilities for wood shredding and forklift trucks for municipal services and 

commercial operations. The range on offer for forestry includes large machinery and equipment such as forestry 

tractors, wood splitting and chipping machinery, forest milling cutters and mulchers, cable winches, road and 

path construction machinery right through to small appliances such as chainsaws and brush cutters, including the 

necessary protective clothing. Moreover, servicing machinery and equipment is guaranteed through a large network 

of locations. 

BayWa’s conventional energy business comprises the sale of fossil-based heating materials, fuels and lubricants. 

Activities concentrate purely on logistics and distribution. BayWa does not maintain supplies of any great scope 

itself. The impact of price changes on inventories is therefore minimal. The sale of heating materials is mainly carried 

out via the company’s own energy sales offices. Diesel and Otto fuel are sold through the Group’s more than 280 

fuel stations. In addition, supplies are delivered to the fuel station chains of partner companies and wholesalers. 

Competitive advantage is created from logistics and distribution through expanding the sale and distribution 

network, coupled with a higher degree of market penetration. The Energy Segment therefore also regularly 

seizes opportunities for growth through acquisition. As the structure of fuel trading is characterised mainly by 

mid-sized enterprises, alongside the few market participants who operate nationwide, good opportunities present 

themselves relatively often. In its lubricants business, BayWa traditionally supplies farmers in the main, along with 

small and mid-sized customers in the metal working trade and industrial customers. BayWa is a market leader for 

environmentally compatible plant-based lubricants. 

In the field of renewable energies, BayWa covers the value chain in the field of solar, wind power and biogas, from 

planning, development and trading right through to services for plant operation. Its offering comprises photovoltaic 

plants and wind farms as well as plants for generating energy from biomass. In addition, planning, operating 

resources and services form part of the offer associated with these plants. In 2011, BayWa forged ahead with the 

international diversification of its activities through further acquisitions. The company is now represented in a total 

of ten countries in Europe and in the US. By combining activities under BayWa r.e and establishing companies in 

the respective countries in 2011, the prerequisites were set in place for leveraging synergies and participating in 

expected market growth. 


53

54 

Customer groups of BayWa’s 

building materials retail business 

One of the leading companies in 

agricultural wholesale and retail 

Good market position in the 

conventional energy business 

Number two in Germany in the 

building materials retail business 


In the building materials business, BayWa mainly caters to the needs of small and mid-sized construction 

companies, tradesmen and commercial enterprises, as well as local authorities through its retail operations. Other 

groups of important customers are builder-owners and house owners. The key success factors in this business 

are the regional proximity to the customer, the product mix and the advisory services. In the case of conventional 

construction materials, being close to the customer is a significant competitive advantage due to the amount 

of weight or volume, which may make for higher transport costs with relatively low value added. Together with 

direct availability, these are factors driving the regional structure of BayWa’s building materials trade. Business 

in renovation products necessitates knowledge of new trends in materials and technologies and the associated 

advisory services, which is one of BayWa’s core competences. 

The DIY and garden centre business is defined by a niche-based local supplier concept geared first and foremost 

to servicing regional customers. It is subject to seasonal fluctuations as, particularly in the spring, the sale of plants 

and accessories makes a major contribution to revenues. When the planting season is over, demand is strong, 

particularly in the summer, for articles for recreational activities and for building in outdoor areas. In winter, by 

contrast, the focus of demand is redirected to interior decoration and furnishing accessories. The product mix 

therefore varies greatly over the course of the year. With effect from 1 January 2012, BayWa integrated a large part 

of its DIY and garden centre business into a joint venture under management by the Hellweg home improvement 

chain and intends to withdraw completely from this business in the medium term. For this reason, the associated 

assets and liabilities have been classified as held for sale in the 2011 financial statements and will no longer belong 

to BayWa’s core business in future. 

Sales markets and competitive position 

BayWa ranks among Europe’s leading companies in agricultural wholesale and retail trading. It is anchored in 

agribusiness as part of the agricultural cooperatives trading structure where it has its roots. By the nature of their 

historical development, these structures cater to the needs of different regions in Germany and Austria. BayWa 

has approximately 1,100 locations which form part of an extensive and tight network in its regional markets, 

particularly in Bavaria, Baden-Württemberg, Thuringia, Saxony and southern Brandenburg, as well as across the 

whole of Austria. The company maintains close business relations with around 500 cooperative warehouses in 

Austria. Numerous privately-owned mid-sized agricultural trading enterprises, mainly operating locally, make up 

the competitive environment for agricultural products. In contrast, there are a number of wholesalers, represented 

nationwide, offering equipment and resources. All in all, BayWa has carved out a significant market position in 

agricultural trading in Germany and Austria. 

In its conventional energy business, BayWa is represented principally in southern Germany and Austria where it 

has a good market position. The competitive environment is fragmented and determined mainly by mid-sized fuel 

traders. In addition, the large mineral oil trading companies also operate in this market. From a historical standpoint, 

there is a close connection with agribusiness as farmers are among the largest customer groups. The market for 

renewable energies is a regulated market where energy is produced and fed into the grid at prices fixed by the 

government. Developments in the market are therefore largely determined by changes in the structure and the 

amount of state subsidies. BayWa is well diversified, both in terms of its products and in its geographical locations, 

firstly through its offering in the three areas of photovoltaics and wind energy and biogas, and secondly through 

its activities in Germany, France, the UK, Italy, Austria, Poland, Slovakia, Spain, the Czech Republic, Hungary and 

the US. 

In the building materials retail business, regional presence and close contacts with commercial customers are 

the key factors for success. The building materials market is strongly fragmented both in Germany and in Austria. 

In Germany, there are around 840 companies in total with some 2,100 locations specialised in the building 

materials retail trade. The majority of suppliers are mid-sized companies which work together in different forms 

of cooperation. With 220 locations, BayWa takes second place in Germany and enjoys a strong market position in 

many regions. It also has a strong footing in the most attractive regions of the Austrian market through 28 locations 

of its own and an extensive network coverage of franchise partners. The focus of BayWa’s DIY and garden centre 

business lies in rural regions in Germany and Austria. Moreover, BayWa is also represented in Germany, Austria and 

Italy as a franchisor. 


Factors of influence on agriculture 

Price volatility of crude oil in 

conventional energy 

Construction economy impacts 

building materials retail 

Slowdown in global economic 

development in 2011 


Fundamental legal and economic factors of influence 

The Group’s Agricultural Segment is strongly influenced by natural phenomena such as the weather, which are key 

determinants for the success of the harvest. This sensitivity has a direct impact on the offering and pricing in the 

markets for agricultural commodities and natural products. In recent years, the degree to which price trends in the 

regional markets depend on international influences, such as droughts or poor harvests in other parts of the world, 

has accelerated. This also applies to the extent to which the price trends of individual agricultural commodities 

influence one another. Moreover, fluctuating exchange rates and transport prices are exerting a greater influence 

on pricing in the regional markets due to the swifter pace of international integration. The growing significance of 

agricultural commodities has also exacerbated price volatilities. Finally, changes in the legal framework conditions, 

especially in the field of renewable primary products and renewable energies, can trigger considerable adaptive 

reactions in the markets trading in agricultural products. Similarly, directives issued by the EU, for instance, exert a 

major influence on pricing and structures in a number of relevant markets. 

Business in the Energy Segment is mainly influenced by volatile price trends in the crude oil markets. Consequently, 

the prices of fossil-based heating materials, fuels and lubricants are also subject to considerable fluctuations which 

naturally affect the demand for these products. In the case of renewable energies, rising prices for fossil-based fuels 

generally result in stronger demand. The sale of biodiesel, however, depends to a great extent on fiscal framework 

conditions and political decisions on the blend with traditional petroleum. This applies analogously to the demand 

for photovoltaic systems where, until the systems reach grid parity, return calculated from an economic standpoint is 

largely determined by the tariffs for feeding into the grid prescribed under the law. 

Changes in the economic and political environment in particular may have a positive or negative effect on the 

Building Materials Segment, especially in the case of government policies on residential construction or government 

subsidies to promote renovation and refurbishment. The development of the building materials retail business 

generally tracks overall economic activities. Civil engineering and road construction in particular depend on publicsector 

spending. In the area of private construction, incentives such as government subsidies for renovation or 

refurbishment measures, favourable interest rates for financing and changes in the feed-in tariffs for electricity 

generated by photovoltaic plants influence investment patterns. In addition, manifold regulations under construction 

law and construction directives such as energy conservation directives or the introduction of energy certification for 

buildings, construction approvals, public procurement law, as well as directives on fire and noise insulation, influence 

investment behaviour and the demand for certain products. 

Macroeconomic conditions 

Global economic growth slowed considerably in 2011. Overall, economic output grew by only 2.7% in real terms, 

down from 4.1% in 2010. Expansion in the gross domestic product of the industrial nations averaged a mere 

1.6%. Factors of influence were the weak development in the US owing to the high level of unemployment and 

the persistently difficult situation in the real estate market, which posted a growth of only 1.7%, as well as Japan’s 

economic output which contracted by 0.9% in the wake of the natural catastrophe in March 2011. The eurozone 

also reported a modest growth of 1.6%, hampered by the impact of the debt crisis in the peripheral countries of 

southern Europe. In contrast, emerging and developing countries achieved an above-average expansion rate of 

6.0%, headed first and foremost by China with an increase of 9.1%. 

The German economy benefited from steady, high demand for German products in other countries in 2011. As a 

result, exports climbed by 8.4% compared with the year-earlier level. In addition, capital investment posted a growth 

of 6.4%, thereby contributing more to macroeconomic growth than a year ago. Consumer spending, however, 

edged up by only 1.4% in 2011, and public-sector spending saw below-average growth of only 1.3%. Economic 

output in Austria grew by 3.2% in 2011, boosted first and foremost by capital investment and strong exports which 

climbed by 5.6% and 7.8% respectively. 


55

56 

Significant increase in the price 

of agricultural produce 

Demand for lubricants stronger 

Acceleration in Germany’s policy 

to promote alternative sources of 

energy 


Trends in the agriculture sector 

Compared with a year ago, the average prices of agricultural produce, particularly of grain, rape, fruit and milk, 

rose significantly in 2011. At the end of the third quarter, the producer price index of agricultural produce was 

almost 12% above the level posted a year ago. In the case of important agricultural commodities, this price trend 

was buoyed by strong global demand and the rising price of energy. Due to the growing use of renewable primary 

materials to produce energy, prices in the energy market are increasingly forming a floor for the corresponding 

agricultural produce. Moreover, unfavourable weather conditions during the main harvest period in late summer 

and early autumn resulted in poor harvests in a number of regions. The global production volume of grain in the 

grain year 2010/11 came in at 2,200.3 million tons, which is 1.8% lower in comparison with the 2010 figure. At 

the same time, consumption climbed by 1.2% to 2,228.7 million tons, which depleted inventories by 28.4 million 

tons to 462.2 million tons. The total volume of grain harvested in Germany fell 5.7% short of the year-earlier level. 

Winter barley was particularly badly affected by the weather, with the yield per hectare declining by 14.9%. Seen 

from a regional standpoint, the yield trend in the south and west was better than in the north and east. Producer 

prices in the dairy industry climbed for the second year in a row, with dairy production up by around 2.4%. The 

production of meat is likely to have risen overall by between 1% and 2% in 2011. A slight downturn in the volume of 

cattle farming was more than compensated by rising prices. Pig farming came under pressure in 2011 from higher 

feedstuff prices, on the one hand, and dioxin contamination of certain types of feedstuff on the other. As a result, 

producer prices fell to their lowest level for a number of years but staged a recovery as the year progressed. Poultry 

farming grew by approximately 3% in terms of volume in 2011, accompanied by better prices. The purchase prices 

of agricultural operating resources also rose significantly overall by 8%. Above-average price hikes were recorded 

particularly for fertilisers, feedstuffs and energy as opposed to crop protection products where prices increases were 

moderate. The generally substantially higher income of farmers was, however, more than sufficient to compensate 

for higher costs. The German Farmers’ Association therefore anticipates an increase in net value added of 7% to 

€13.4 billion. Operating income per worker advanced by just under 10% to €24,600 in the calendar year 2011, up 

from €22,500 in 2010. Agricultural machinery reported a record year with a revenue growth of more than 30% in 

2011. Strong demand for cutting-edge agricultural technology was driven firstly by the generally good selling prices 

for agricultural produce, and secondly by structural changes in the agriculture industry. For instance, the number of 

agricultural operations declined by another 2.3% in 2010 to 300,700 in contrast to the average area of land under 

cultivation which rose by 2.3% to 55.8 hectares. This trend is conducive to the increasing deployment of intelligent 

and process-driven agricultural equipment to enhance efficiency. 

Trends in the energy sector 

The determining influence on the heating business in 2011 was the high crude oil price. Having closed the year 

2010 at around USD95 per barrel, close to its peak for the year, the crude oil price entered another steep uptrend at 

the start of 2011, which brought it to just under USD127 at the start of April. Although, by the beginning of October, 

the price had declined, displaying a great deal of volatility, from this level to USD100, it was significantly higher over 

the course of 2011 in a year-on-year comparison. Against this backdrop, and because of lower consumption due 

to the mild winter, demand remained modest. Despite positive economic influences and an uptrend in the stock of 

vehicles, the fuels business also reported marginal sales increases. As in 2010, the price policy of the large mineral 

oil companies remained geared to compensating the lower refinery margins through higher margins in other 

business lines, such as filling stations. Demand in the lubricants business continued to rise in 2011, due in the main 

to the sustained positive development of the metal processing industry, particularly mechanical engineering. 

In the field of renewable energies, fundamental political decisions were made with the adoption of the Energy 

Concept 2050 by the German government and Bundestag in the autumn of 2010. Under this concept, the 

proportion of renewable energies in electricity production is to be raised to 80% in the period through to 2050, the 

overall consumption of energy halved and CO 2 emissions reduced by 80% to 95%. The nuclear disaster in Japan in 

March 2011 accelerated the turnaround in Germany’s energy policy through the retraction of extending the lifetime 

of existing nuclear power plants. All in all, the expansion of solar, wind power and biogas capacities is progressing 

apace and is being increasingly promoted by established energy utilities. Whereas wind farms and biogas plants 

generally involve large-scale commercial projects, the demand for photovoltaic systems is strongly influenced by 

private households. In this segment, the development of subsidising measures has a major impact on investment 


Building permits rise 18% 

in Germany 


decisions. Following another cut in the feed-in tariffs on 1 January 2011, interest in solar plants and systems in 

Germany was very modest in the first nine months of 2011 compared to the strong demand in the previous year. 

An oversupply of solar cells from China, however, caused module prices tumble which, in turn, overcompensated 

for the reductions in subsidies on 1 January and 1 July 2011. In December alone, for instance, 3,000 megawatts 

were installed in the run-up to the feed-in cuts on 1 January 2012, which is almost 50% of the record capacity of 

7,500 megawatts installed over the whole of 2011. International markets, such as France, the UK, Italy and Spain, 

also saw further reductions in the feed-in tariffs or even the shelving of other subsidies for renewable sources of 

energy in 2011, partly for technical and partly for budget consolidation reasons. Accordingly, two counter trends 

emerged in the year 2011: On the one hand, there is a broad consensus of public opinion in many countries that the 

proportion of renewable energies in power production should be raised substantially; on the other, the most efficient 

way of achieving this goal is still unclear in many respects. 

Trends in the construction industry 

The construction industry benefited from very favourable weather conditions throughout the whole of 2011. In 

comparison with the previous year, for instance, the premature end to the winter 2010/11 permitted an early start 

to numerous construction projects, and the mild weather conditions until December 2011 with no frost enabled 

building activities to continue through to the end of the year. With a share of over 56% in overall building activities 

investment, residential construction is the most important segment in Germany. Buoyed by the persistently 

low interest rate level, the number of building permits for owner-occupied homes, multi-family housing and 

other residential buildings climbed by a good 6% to 188,500 in 2010. This uptrend accelerated in 2011 with 

an increase of 18% to 222,600 building permits. The good weather conditions and the high number of permits 

prompted residential construction investment to rise by 5.9% in 2011. Non-residential building reported a growth 

in construction activities of 3.8%. Commercial building developed particularly well, climbing by 6%, as opposed to 

investment in public-sector building which contracted by 4.9% due to the expiry of the 2010 economic stimulus 

package. Following four years of decline, civil engineering investment activity staged a turnaround, posting a 

sharp increase of 6.7% in 2011. Commercial civil engineering recorded a growth of 8.6% and public-sector civil 

engineering 4.9%. The share of refurbishment, renovation and modernisation measures in building investments 

overall reported another upturn to just under 73%. All in all, construction investment in Germany climbed 5.4% 

in comparison with 2010. In Austria as well, the favourable weather conditions had a positive impact on building 

activities. The good weather in autumn 2011 was the reason for numerous construction and refurbishment 

measures planned for 2012 being brought forward. Nonetheless, the increase in construction investment, which 

came to 1.0% in total, was only moderate. This was attributable to cuts in government subsidies to promote 

residential construction which has caused a decline in building permits for several years now, as well as the shelving 

of projects promoting thermal retrofitting. In addition, investments in the rail and road infrastructure were also 

curtailed owing to the necessity of consolidating the public sector budget. Austria’s building materials industry, 

however, recorded a nominal revenue growth of 5.5% in 2011. 


57

58 

Increase of 19.8% in the revenues 

of Agricultural Trade Business Unit 

Revenue growth of 26.2% in the 

Fruit Business Unit 

Revenues of the Agricultural 

Equipment Business Unit 25.9% 

higher 

More heating oil revenues from 

inclusion of WAV Wärme Austria 

VertriebsgmbH 

3 • Management Report on the Company and the Group • Earnings, Financial Position and Assets 

III. Earnings, Financial Position and Assets 

Development of the Group’s business segments 

Development of the Agriculture Segment in 2011 

The revenues of the BayWa Group, generated through agricultural produce and operating resources in its 

Agricultural Trade Business Unit, rose by 19.8% to €3,029.6 million in the financial year 2011. The increase in 

revenues is largely price induced, as the uptrend in the prices of agricultural produce held steady overall in 2011. 

In contrast, average harvest volumes across all plant products were below the year-earlier levels. The production 

of grain fell 5.7% short of the 2010 harvest volumes. BayWa’s grain turnover declined by 2.1% to 4.9 million tons 

in 2011, down from 5.0 million tons a year ago. Grain trading, however, benefited from brisk business from the 

subsequent collection and storage of the harvest and the favourable selling price trend, particularly in the first six 

months. The sales volume of fertilisers and feedstuff were 2.6% and 2.4% higher respectively in a year-on-year 

comparison. The largely price-induced growth in revenues resulted in an increase in EBITDA of €5.3 million, the 

equivalent of 6.9%, to €82.0 million. As, at the same time, depreciation and amortisation was €1.4 million lower, 

EBIT advanced by €6.7 million to €56.1 million, which is an increase of 13.5%. Owing to the significantly higher 

trading volume requiring financing, net interest came in at €–20.5 million, which is €4.1 million down from the 

year before. All in all, earnings before tax of the Agricultural Trade Business Unit grew by €2.6 million, or 7.7%, to 

€35.6 million. 

The Fruit Business Unit lifted revenues by 26.2% to €129.7 million in the financial year 2011, up from 

€102.8 million. This expansion in revenues is mainly attributable to the high price level and record harvests for 

dessert fruit in southern Germany. BayWa’s sales volume exceeded the year-earlier figure by 33.2%. The business 

unit’s EBITDA climbed by €0.4 million to €5.9 million, and EBIT rose by 6.7% to €4.0 million on the back of 

depreciation and amortisation which increased by €0.2 million to €1.9 million. Taking account of financing expenses 

of €0.4 million, the Fruit Business Unit generated an increase in earnings before tax of 2.6% to €3.6 million. 

Business in tractors and other agricultural machinery grew swiftly in 2011, boosted by the improved income 

situation of farmers. The Agricultural Equipment Business Unit, for instance, was able, to sell 21.5% more new 

machinery than in 2010. The business unit also benefited from the measures concluded to realign brand support 

for CLAAS and AGCO (with the Fendt, Massey Ferguson, Valtra and Challenger brands) and an enlargement of the 

sales territory. All in all, revenues from trading in agricultural machinery stood at €1,099.5 million in 2011, which is 

an increase of €226.2 million, or 25.9%. EBITDA measured against revenues reported an above-average increase 

of €7.7 million, up 39.0% to €27.4 million, due to the non-recurrence of the higher level of expenses incurred in 

2010 from adjusting locations to the CLAAS and AGCO brands. Although depreciation and amortisation increased 

slightly by €0.5 million to €9.4 million, EBIT nonetheless improved by €7.2 million, the equivalent of 67.0%, to 

€18.0 million. Net of financial expenses of €9.3 million, which is €0.6 million higher than the year earlier figure, 

earnings before tax of the Agricultural Equipment Business Unit climbed by €6.6 million to €8.7 million, which is 

more than three times the figure posted in 2010. 

All three business units contributed to the generally positive development of the Agricultural Segment. In the 

financial year 2011, the Agriculture Segment generated revenues of €4,258.9 million, which is a growth of 

21.5% compared with the previous year’s figure. The segment’s EBITDA rose €13.4 million to €115.4 million, the 

equivalent of an increase of 13.2%. Adjusted for depreciation and amortisation of €37.4 million, the segment’s 

EBIT climbed by €14.1 million, corresponding to 22.1%, to €78.0 million. The segment’s financing costs stood 

at €30.2 million, and were thus €4.9 million higher than in 2010. Earnings before tax advanced €9.2 million to 

€47.8 million in the financial year 2011, which is a growth of 23.9%. 

Development of the Energy Segment in 2011 

In comparison with the previous year, the revenues of the Energy Segment through business with conventional 

sources of energy rose across all product categories in the financial year 2011. The 14.5% growth in the sale of 

heating oil was mainly attributable to the inclusion of WAV Wärme Austria VertriebsgmbH in the consolidated group 

with effect from 1 July 2011; in comparison with the previous year, sales in 2011 declined. Demand for wood 

pellets continued to climb in 2011, enabling BayWa to lift sales by 14.0%. As regards fuels, expanding the network 

of filling stations and a slight increase in demand resulted in sales rising by 3.5% overall. The lubricants business 

was buoyed by the healthy economic environment, which resulted in an increase of 6.6% in sales. All in all, BayWa’s 


Weather conditions favour the 

building materials business 


conventional energy business reported revenues of €2,805.9 million, corresponding to a growth of 33.4% over the 

previous year’s figure. This increase in revenues is, however, largely attributable to the significantly higher prices 

commanded for heating oil and fuels. At the same time, the high price of heating oil resulted in lower tank filling 

volumes of customers which, in turn, caused margins from volumes transported in relation to the route driven to 

deteriorate in 2011 compared with the previous year. In contrast, the development of margins in the filling stations 

business was positive, and the lubricants business also raised its profit. All in all, EBITDA in the conventional energy 

business, which stood at €15.4 million, fell €2.2 million, or 12.3%, below the year-earlier level due to the weaker 

heating oil business. Depreciation and amortisation rose from €8.3 million in 2010 to €9.1 million in the reporting 

year, bringing EBIT to €6.3 million, which is a decline of €2.9 million or 31.7%. In the renewable energies business, 

revenues climbed by €51.1 million to €306.0 million, up 20.1%. All three product segments namely photovoltaics, 

wind power and biogas, contributed to better revenues. In addition, four biogas plants, one wind farm and several 

solar parks in the project development business were sold after having being taken into operation and after 

successful completion of their ramping-up phase. BayWa r.e’s EBITDA soared by 50.9% to €36.4 million. Adjusted 

for depreciation and amortisation of €9.3 million, EBIT posted a growth of €6.0 million, the equivalent of 28.5%, to 


The total revenues of the Energy Segment stood at €3,111.8 million in the financial year 2011, which corresponds 

to an upturn of €753.3 million equivalent to 31.9%. The segment’s EBITDA posted €51.9 million, which is 24.3% 

higher than the year-earlier figure. Net of depreciation and amortisation, which came to €18.5 million and was 

therefore €7.1 million higher than in 2010, the Energy Segment lifted EBIT by 10.1% to €33.4 million, an 

increase of €3.1 million. Owing to the higher level of investments over the past two years, particularly in the 

renewable energies business, financing costs rose by €5.8 million to €10.3 million. As a result, the Energy Segment 

reported a decline of €2.6 million in earnings before tax to €23.1 million. 

Development of the Building Materials Segment in 2011 

The Building Materials Business Unit developed well, buoyed by favourable weather conditions in 2011 and brisk 

construction activities, especially in residential building. Revenues generated from the building materials retail 

business climbed 10.0% to €1,508.5 million. There was an above-average increase in EBITDA, which soared by 

€16.5 million to €41.7 million, up 65.1%. Measures implemented to streamline the business had a particularly 

positive effect. Depreciation and amortisation, which came to €17.0 million, was marginally higher than the yearearlier 

level of €16.7 million. In comparison to the 2010 figure of €8.5 million, EBIT almost trebled to €24.7 million. 

The expenses incurred by the Building Materials Business Unit to finance a sharp increase in business volume rose 

by €2.5 million to €8.0 million. Earnings before tax generated by the business unit were boosted to €16.6 million, up 

from €13.6 million, by the substantial improvement at the operational level. 

The upbeat economic environment also had a positive impact on the performance of the DIY & Garden Centres 

Business Unit. Furthermore, the garden centres refurbished and reopened in the past two years contributed 

to boosting revenues. All in all, the revenues generated by the DIY and garden centre business increased by 

€24.8 million, which is 4.7%, to €557.1 million. The business unit’s EBITDA, burdened in 2010 by start-up costs for 

the new DIY and garden centres, rose more sharply than revenues, posting an increase of 7.5% to €23.9 million 

in the financial year 2011. Depreciation and amortisation fell to €12.1 million in the reporting period, down from 

€12.4 million in 2010. Accordingly, EBIT climbed by 20.5% to €11.8 million. Adjusted for net financing expenses of 

€4.5 million, which were also marginally lower than the year-earlier figure of €4.6 million, earnings before tax of the 

DIY and garden centres business grew by 42.2% to €7.3 million. 

The Building Materials Segment raised total revenues by €162.5 million to €2,065.6 million in the financial 

year 2011, which is an increase of 8.5%. In terms of EBITDA, the segment reported a growth of 38.2% to 

€65.6 million. As, at the same time, depreciation and amortisation declined by €0.8 million to €29.1 million, EBIT 

came to €36.5 million in the reporting year, up 98.9% and thus virtually doubling. The financing expenses totalled 

€12.5 million in 2011, which is €2.4 million more than in 2010. All in all, there has been an increase of 192.2% in 

the Building Material Segment’s earnings before tax which have therefore almost trebled to €24.0 million. 


59

60 

Growth of 21.3% in the 

BayWa Group’s revenues 

Voluntary payment of a bonus to 

employees subject to collective 

bargaining agreements 

Earnings position of the BayWa Group 


Development of the Other Activities Segment in 2011 

At the end of the year, Other Activities comprised BayWa’s participation in Ybbstaler, an Austrian food producer, 

and dividend income from a number of participating interests which, from the standpoint of the Group, are of 

secondary importance. The year-on-year increase in revenues of €13.1 million to €149.4 million was first and 

foremost the result of the improved business volume of Ybbstaler GmbH. The fact that Frisch & Frost, an Austrian 

food producer sold in 2010, was no longer contributing to the result caused EBITDA to fall by €3.3 million to 

€55.6 million. This decline was compensated by the lower level of depreciation and amortisation, so that EBIT, 

which posted €41.5 million, was virtually unchanged from the 2010 figure of €41.8 million. Along with the operating 

profit of Ybbstaler GmbH, this figure largely comprises income contributed by the Group companies. All in all, Other 

Activities’ earnings before tax came to €41.7 million in 2011, which is €0.5 million higher year on year. 

Revenues of the BayWa Group climbed by 21.3% to €9,585.7 million, which is equivalent to an increase of 

€1,682.7 million, in the financial year 2011. Similar to the previous year, revenue growth was driven mainly by 

higher market prices for agricultural produce, operating resources and mineral oil products as well as the expansion 

of activities in the renewable energies business through organic growth and further acquisitions. 

Other operating income rose by a total of €2.8 million to €130.0 million and comprises the following main 

components: rental income of €27.1 million (2010: €23.5 million), gains of €23.4 million from assets disposal 

(2010: €31.7 million), regular cost reimbursement of €16.0 million (2010: €14.8 million), the release of provisions 

in an amount of €10.5 million (2010: €11.7 million) and recurring advertising subsidies of €3.6 million (2010: 

€5.1 million). The aforementioned contributions to profit came to €80.6 million in total, thereby falling €6.2 million 

short of the year-earlier level. In contrast, other operating income advanced by €10.0 million to €37.7 million (2010: 

€27.7 million). The balance of the remaining items (hiring new staff, payments received on receivables written down 

and currency-induced gains) came to €11.7 million, which is €1.0 million short of the previous year’s figure. 

The cost of materials increased by €1,566.1 million to €8,503.1 million in the reporting year, largely due to higher 

prices in the agri- and energy business. Net of the cost of materials, gross profit improved to €1,303.7 million in 

the year under review, which corresponds to an increase of €133.6 million, or 11.4%, in comparison with the yearearlier 

figure. 

Personnel expenses of €679.8 million rose by 7.3%, equivalent to €46.1 million, principally owing to adjustments 

under collective bargaining agreements in the Group and higher employee numbers. Another factor contributing 

to the rise was the initial consolidation of Group companies, which came to €19.8 million, and a voluntary special 

payment totalling €5.1 million made to employees subject to collective bargaining agreements as a bonus for the 

company’s good performance in the financial year 2010. 

Other operating expenses stood at €382.4 million in the reporting year, which is an increase of €54.1 million and 

16.5% higher than in 2010. This was mainly attributable to greater costs incurred by the following: €54.2 million for 

the vehicle fleet (2010: €45.4 million), maintenance costs of €45.6 million for refurbishment measures in various 

locations (2010: €39.0 million), greater expenses incurred by commissions, insurance cover, legal, audit and 

In € million 2007 2008 2009 2010 2011 


Change in % 

2011/10 

Revenues 7,227.2 8,794.6 7,260.2 7,903.0 9,585.7 21.3 

EBITDA 234.6 258.1 209.7 228.2 253.6 11.1 

EBITDA margin (%) 3.2 2.9 2.9 2.9 2.6 — 

EBIT 143.6 161.9 115.4 128.9 151.4 17.5 

EBIT margin (%) 2.0 1.8 1.6 1.6 1.6 — 

EBT 90.5 103.5 75.1 87.1 97.7 12.1 

Consolidated net income 71.8 76.7 59.4 66.8 69.8 4.5

Increase of 17.5% in EBIT 

Greater independence from capital 

market fluctuations 

Earnings per share post €1.50 



consultancy fees of €44.9 million (2010: €36.2 million), advertising costs of €42.3 million (2010: €34.5 million), 

as well as greater losses of €7.7 million from asset disposals (2010: €2.7 million). In addition, the generally higher 

rental, energy and IT equipment costs contributed to raising other operating expenses in an amount of €67.5 million 

(2010: €62.3 million). The increase in other operating expenses was mainly attributable to the expansion of BayWa’s 

business. 

The BayWa Group’s earnings before depreciation, amortisation, interest and tax (EBITDA) rose by €25.4 million to 

€253.6 million, up 11.1%, in the financial year 2011. 

Scheduled depreciation and amortisation in the BayWa Group was higher than in 2010 owing to the greater 

investment volume and additions to the group of consolidated companies. All in all, depreciation and amortisation 

rose by €2.9 million to €102.2 million. 

The BayWa Group’s EBIT advanced by €22.5 million to €151.4 million, which is an increase of 17.5%. 

The financial result comprises income from participating interests, which is allocated to EBITDA and EBIT, and 

net interest. The decrease in income from participating interests of €8.0 million to €12.0 million was the result 

of the sale of participations in the context of streamlining the portfolio and focusing on BayWa’s core business. 

Lower net interest, down €12.0 million to €–53.7 million, is essentially due to the financing of ongoing investments 

and acquisitions and higher working capital due to the market price hikes for agricultural produce and operating 

resources. Furthermore, BayWa took advantage of the favourable capital market environment in the autumn of 

2011 to finance part of its working capital in the longer term with a view to gaining greater independence from 

fluctuations in the capital markets. 

Including net interest, the BayWa Group’s earnings before tax rose by €10.6 million, an increase of 12.1%, to 

€97.7 million. The Agriculture Segment contributed €9.2 million and the Building Materials Segment €15.8 million 

to this increase. In contrast, the Energy Segment’s result dropped by €2.6 million. The contribution to profit by Other 

Activities was €0.5 million higher than in the previous year. 

The BayWa Group’s income taxes had risen to €27.9 million by the end of the reporting period compared with 

€20.3 million in 2010. Influencing factors were the positive profit trend of Group companies, on the one hand, and 

the fact that the findings of the audits completed on the parent company were included in the income taxes, on the 

other. The tax rate therefore comes to 28.5% (2010: 23.3%). 

After deduction of income taxes, the BayWa Group generated a net income of €69.8 million in the financial year 

2011; compared with the previous year’s figure of €66.8 million, this represents an increase in profit of 4.5%. 

Earnings per share (EPS), which is calculated from the portion of the result attributable to the shareholders of 

the parent company in relation to the average number of shares outstanding of 34,203,731 in the financial year 

(dividend-bearing shares minus treasury shares), climbed from €1.48 in 2010 to €1.50 in the reporting year. 

Financial position 

Financial management 

The aim of financial management within the BayWa Group is to secure the financial resources required for the 

purpose of conducting regular business at all times. This task includes hedging against interest rate risk, currency 

risk and merchandise-related market risks by using suitable derivatives instruments. 

Forward exchange transactions and swaps are used selectively to hedge receivables and liabilities denominated in 

a foreign currency. These measures served exclusively to hedge underlyings from customary business. 


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62 

No entering into speculative risk 

positions in financial operations 

Decentralised procurement of funds 

Another bonded loan issued in 2011 

Mutual trust through historical ties 

Capital structure and capital base 


Forward exchange transactions and swaps are used solely to hedge existing and future receivables and liabilities 

denominated in foreign currency from the purchase and sale of goods. Hedging transactions in the BayWa Group 

are designed to reduce the risks from fluctuating exchange rates. The volume of open positions arising from the 

respective underlyings and the resulting cash flows form the basis for currency hedges. Terms reflect those of the 

underlyings. No macro-hedging is carried out on the anticipated exposure. 

In the BayWa Group, financial management has been set up as a service centre for the operating units and not as a 

profit centre in its own right. In accordance with this conservative approach to providing services, the use of fungible 

financial products to generate original profit contribution in financial operations has been waived. In particular, there 

are no speculative positions in our financial operations. 

Daily financial management is focused on liquidity management through cash pooling within the whole Group and 

the same-day provision of liquidity. The Treasury Department uses suitable IT systems and appropriate treasury 

management software for this purpose. 

The procurement of funds is organised decentrally and based on the principle that the national entities refinance in 

local currency of the respective country. This applies mainly to activities in Eastern Europe. Apart from this, however, 

the BayWa Group conducts its business mainly in euros. Treasury is responsible for the centralised monitoring of 

groupwide financial exposures. 

Financial management is subject to the most stringent requirements imposed by an internal control system 

which includes the documentation of trading transactions, a hierarchy of approval and resolution procedures, 

comprehensive application of the principle of dual control as well as the segregation of Treasury front and back 

offices. 

The most important financing principle of the BayWa Group consists in observing the principle of matching 

maturities. Short-term debt is used to finance the working capital. Investments in property, plant and equipment and 

acquisitions are funded from bonded loans and other long-term loans. The bonded loan, placed in 2011, substitutes 

for short-term credit lines without these credit lines being replaced or terminated. 

Interest rate risks inherent in short-term debt are covered by BayWa in the context of its risk management through 

the use of simple derivative instruments. Around 50% of the borrowings portfolio is to be secured against interest 

rate risk through the respective hedging instruments. This partial hedging takes account of the seasonally-induced 

strong fluctuations in financing requirements. 

BayWa evolved from the cooperatives sector with which it remains closely connected through its shareholder 

structure as well as through the congruence of the regional interests of banks and commerce. These historical ties 

form the basis for a special kind of mutual trust. Particularly in the face of the great uncertainty still prevailing in the 

financial markets, both sides benefit from this partnership. The cooperative banks boast a particularly strong 



Change in % 


Equity 854.5 915.1 957.5 1,005.5 1,068.0 6.2 

Equity ratio (in %) 27.4 29.8 32.6 30.9 27.3 — 

Short-term borrowing 1 1,597.4 1,505.8 1,290.0 1,366.7 1,697.4 24.2 

Long-term borrowing 666.1 644.9 691.8 881.0 1,147.6 30.3 

Debt 2,263.5 2,150.7 1,981.8 2,247.7 2,845.0 26.6 

Debt ratio (in %) 72.6 70.2 67.4 69.1 72.7 — 

Total capital 

(equity plus debt) 

3,118.0 

1 including liabilities from non-current assets held for sale/disposal groups 

3,065.8 

2,939.3 

3,253.2 

3,913.0 

20.3

Equity ratio of 27.3% in 2011 

Total assets climb by €659.8 million 


primary customer and deposit portfolio which is made available for the preferential financing of stable business 

models. 

Along with its integration into the cooperative financial association, the broad transnational diversification of the 

bank portfolio and of the financing activities also lower the risk within the BayWa Group. 

BayWa is targeting an equity ratio of at least 30% in the medium and long term. This equity base constitutes a very 

sound figure for a trading company and forms a stable basis for business activities to develop. In the reporting year, 

the equity ratio of 27.3% fell marginally below this threshold due to the borrowing of additional capital to finance the 

high running investments and the acquisitions to realise future opportunities for growth. 

Short-term borrowing is used exclusively to finance short-term funds tied up in working capital. The status of shortterm 

borrowing disclosed at year-end regularly reflects the highest level of utilisation. Due to seasonal influences, 

borrowings rise through preliminary storing of operating resources and through buying up harvest produce in the 

fourth quarter of the financial year. The increase in current financial liabilities as against the previous year is primarily 

attributable to the higher prices commanded for agricultural produce and operating resources. On the assets side of 

the balance sheet, the ensuing increase in business volume is reflected particularly in the “inventories” and “other 

receivables and other assets” items. The increase in non-current liabilities must be seen mainly in connection with 

the financing of investments in growth and acquisitions in the financial year. 

As per 31 December 2011, the BayWa Group’s total assets had climbed by €659.8 million in comparison with the 

previous year’s figure. Current liabilities rose by €330.7 million. The increase is also attributable to liabilities from 

non-current assets held for sale which were €49.2 million higher in the reporting year. Non-current liabilities rose 

by €266.6 million. This figure includes a nominal amount of €218.5 million from the issuing of another bonded loan 

with terms of five and seven years which was placed in autumn 2011. This measure enabled BayWa to diversify its 

financing portfolio and smooth the maturity profile of liabilities. 

The cash flow from operating activities fell by €18.1 million in the financial year 2011. Improved consolidated net 

income was offset by a price-induced rise in inventories and an increase in other receivables and other assets. The 

resulting negative impact on the cash flow was only partially compensated by the cash inflow corresponding to the 

greater level of inventories from the increase in trade payables. 

In the reporting year, cash outflow from investing activities climbed by €109.1 million compared with the yearearlier 

figure. This development is mainly attributable to higher investments in property, plant and equipment and an 

increase in the amount paid for acquisitions and intangible assets. 

The cash flow from financing activities rose by €142.3 million. The positive balance resulted from long-term 

borrowing in the form of a bonded loan in a nominal amount totalling €218.5 million, offset against dividend of 

€19.9 million paid in the financial year 2011. 

Cash flow statement and development of cash and cash equivalents 


Cash flow from operating activities 57.4 215.5 243.9 – 9.4 – 27.5 

Cash flow from investing activities – 61.7 – 143.9 – 127.5 – 113.5 – 222.6 

Cash flow from financing activities 4.8 – 73.5 – 112.8 131.6 273.9 

Cash and cash equivalents at the end of the period 18.0 16.1 19.7 28.2 87.0 


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64 

Sale of non-core real estate 

Bonded loan of €218.5 million 

Strategic approach: trading business 

on own land and property 


In an overall analysis of the incoming and outgoing payments from operating activities, investment and financing 

activities, cash outflow from operating activities and investing activities was more than compensated by the 

incoming cash flow from financing activities. As a result, cash and cash equivalents at the end of the reporting year 

came to €87.0 million, which is €58.8 million higher against the previous year. 

Financial base and capital requirements 

The BayWa Group’s financial base is replenished first and foremost by funds from operating activities. In 

the reporting year, market-price-induced funds committed to inventories and to receivables portfolios were 

compensated by greater utilisation of external financing. Moreover, the Group took receipt of funds from measures 

to streamline portfolios, such as the disposal of real estate not essential to operations or non-strategic financial 

participation. 

Capital requirements are defined by investment financing and the ongoing financing of operations, the repayment 

of financial liabilities and running interest payments. The aggregated view of liquidity and debt is determined 

through the calculation of net liquidity or net debt and used for internal financial management as well as for external 

communication with financial investors and analysts. Net liquidity and net debt is calculated from the sum total 

of cash and cash equivalents minus outstanding commercial paper, bank debt and finance lease obligations, as 

reported in the balance sheet. 

Matched to funds committed, the financing structure remains largely short term. Along with short-term borrowing, 

the Group finances itself by way of a multi-currency Commercial Paper Programme in an amount of €300 million; 

on the reporting date, drawdowns came to €130.0 million (2010: €49.3 million). At the end of 2011, demand in 

the commercial paper segment was stronger than in the previous years. Terms of up to three months are also being 

requested again by investors. By the end of the reporting period, €113.7 million (2010: €79.9 million) had been 

financed from the ongoing Asset Backed Securitisation Programme. 

With a view to diversifying the Group’s financing portfolio, BayWa used the attractive conditions in the capital market 

in the fourth quarter of 2011 to place a bonded loan in a nominal amount of €218.5 million. The bond was offered 

with terms of five and seven years. Depending on investor interest, the two tranches bear interest either at a floating 

rate based on the 6-month Euribor, or at a fixed rate based on the mid-swap rate. The bonded loans were very well 

received in the market and were heavily oversubscribed. 

Investments 

In the financial year 2011, the BayWa Group invested around €205.6 million in intangible assets (€16.9 million) and 

property, plant and equipment (€188.3 million). These investments were primarily for the purpose of repair and 

maintenance of buildings, facilities and office fixtures and fittings, as modern locations and seamlessly operating 

facilities are a precondition for efficient logistics processes. 

BayWa holds fast to its strategic approach of conducting trading wherever possible on its own land and property, 

which makes its business independent of rental increases or changes in the ownership structure. Real estate assets 

therefore enhance the stability of operations. By contrast, real estate no longer used for operations is consistently 

sold off. The proceeds accruing from these transactions are used to reduce debt or to finance the Group’s growth. 

Investments of around €34.0 million were made in new business premises, focused on the completion of these 

locations in 2011. For instance, a new DIY and garden centre was built in Aschaffenburg requiring an investment 

of €9.1 million. With a sales surface area of more than 11,000 m 2 , the centre is one of BayWa’s largest and most 

modern. The newly built Rain am Lech Agricultural Centre of Competence combined the former locations of 

Rennertshofen and Donauwörth with the local agricultural centre. The site with the existing grain warehouse was 

extended by adding a fertiliser building, a fertiliser mixing plant, a multi-purpose building, crop protection facilities 

and an office building. The second construction phase necessitated funding of just under €3.1 million in the 

reporting year. Investments of around €3.4 million were made in the refurbishment of the agricultural centre in 


€63.6 million invested in company 

acquisitions 

Matching maturities in financing as 

important quality criterion 

Composition of assets 


Schweinfurt in 2011. The extension of the location in Schweinfurter Hafen has made it one of the region’s most 

efficient collection and turnover points for bulk goods, loose fertiliser as well as grain and oilseed. Moreover, BayWaowned 

buildings were equipped in 2011 with photovoltaic plants costing around €6.5 million. The power generated 

by these plants can supply around 872 four-person households on average. 

Acquisitions in total volume of €63.6 million were made in the financial year 2011. 

Around 65% of all investments made by the BayWa Group are accounted for by the Energy Segment. The high 

proportion of overall investment reflects the strategic goal of building up the renewable energies business. Just 

under 17% of the overall amount was invested in the Agriculture Segment and 8% in the Building Materials 

Segment. Approximately 10% was attributable to Other Activities. 

In the reporting year, non-current assets rose by 13.1%, the equivalent of €187.0 million compared with the 

year-earlier period. Additions to intangible assets and property, plant and equipment of €247.8 million as part 

of investment and acquisition activities in the core businesses were essentially offset by the lower amounts of 

the following items: the proportion of companies recognised at equity down €29.2 million, deferred tax assets 

down €22.3 million and investment property down €8.0 million. Higher current assets were due in the main to a 

market price-induced rise in inventories of €103.1 million, other receivables and other assets which climbed by 

€101.2 million, and cash and cash equivalents which were €58.8 million higher. The increase of €209.7 million in 

non-current assets held for sale was essentially incurred by integrating the DIY and garden centre activities into the 

Hellweg home improvement chain via a joint venture with Semer Beteiligungsgesellschaft mbH with effect from 

1 January 2012, as well as the integration of the fruit juice concentrate manufacturer Ybbstaler in the context of a 

joint venture with AGRANA Juice Holding GmbH. 

There has been an overall increase in the BayWa Group’s balance sheet which had risen 20.3% to €659.7 million by 

the reporting date of 31 December 2011. 

Traditionally, BayWa has always placed emphasis on ensuring matching maturities in the financing of assets. Current 

liabilities of €1,615.2 million consisting of financial liabilities, trade payables, tax and other liabilities along with 

current provisions are offset by current assets of €2,039.8 million. By the same token, there is around 137% 

coverage for non-current assets through equity and long-term borrowing. Ensuring matched maturities in financing 

is an important quality criterion for the financing partners of BayWa in the context of raising short-term funds. 



65 

Change in % 


Non-current assets 1,239.3 1,305.6 1,427.2 1,427.4 1,614.4 13.1 

of which land and buildings 659.4 680.6 663.3 650.1 642.0 

of which financial assets 147.2 172.6 226.5 258.3 227.1 

of which investment property 82.4 75.2 78.8 71.6 63.6 

Non-current asset ratio (in %) 39.7 42.6 48.6 43.9 41.3 

Current assets 1,875.1 1,755.5 1,507.4 1,776.8 2,039.8 14.8 

of which inventories 1,083.2 1,101.3 905.0 1,062.3 1,165.4 

Current asset ratio (in %) 60.1 57.3 51.3 54.6 52.1 

Assets held for sale/disposal groups 3.6 4.7 4.7 49.1 258.8 

Total assets 3,118.0 3,065.8 2,939.3 3,253.3 3,913.0 20.3

66 

Excellent result in the financial 

year 2011 

More significant acquisitions 


Achieving a work-life balance 


General statement on the business situation of the Group 

At the time when the Management Report on the BayWa Group was drawn up and, as in the past the Board 

of Management viewed the development of business as positive. The development of profit from agribusiness 

benefited from the ongoing price recovery for agricultural produce in 2011. Market-induced declines in the results 

of the conventional energy business were more than compensated by contributions to profit generated through 

business in renewable energies. The building materials business participated in the improved economic conditions 

in the construction sector. In the financial year 2011, the BayWa Group performed extremely well, achieving an 

excellent result, and it has a well-balanced forward-looking business portfolio to underpin its success in the future. 

Employees 

Along with extensive adjustments to the organisation structure in accordance with the strategies of the BayWa 

segments, the reporting year 2011 again marked significant acquisitions of new companies in Germany and 

abroad. Special emphasis was placed on the expansion and extension of the Group’s still young renewable energies 

business line. Consequently, the Energy Segment reported the sharpest increase in employee numbers, which 

rose by 16.4% to 1,387. The Agriculture and Building Materials also saw the numbers of employees rise by an 

average of 222 and 136 employees respectively. On 31 December 2011, there were therefore 16,834 employees 

in the service of the BayWa Group, which corresponds to an increase of 402 employees (2.5%) in comparison with 

year-end 2010. In terms of an annual average, the number of employees rose by 371 to 15,591 compared with a 

year ago. 

Personnel management instruments 

BayWa uses a system of cutting-edge analyses and financial ratios to manage and control its capacities and to 

optimise the deployment of its workforce. These instruments are a cornerstone for planning but are also used by 

personnel management to control operational workflows. 

Achieving a work-life balance and occupational health 

Achieving a balance between professional and private life is a huge challenge for many people in modern society. 

For this reason, a work-life balance is strongly promoted at BayWa through the offering of multiple options for 

part-time work for fathers and mothers. Enabling parents to return to working life is supported through a childcare 

subsidy of up to €200 a month. In addition, the BayWa Group offers support for home care and elder care together 

with pme Familienservice GmbH, its cooperation partner. The offer of support ranges from information about the 

topic of nursing care insurance and the search for and selection of various care offerings through to recommending 

professional carers. Even more emphasis was placed on the issue of promoting the health of employees in 2011. 

The conceptual foundations were laid for integrating occupational welfare into everyday working life, a key topic 

being a prophylactic approach to promoting good health. Various models in the context of health protection 

were offered in training sessions and seminars. Managerial staff can take part in one-day workshop to sensitise 

them to the issue of work-life balance, stress management and healthy eating habits. The seminar content was 

supplemented by adding modules to promote well-being for staff. 

Development of the average number of employees in the BayWa Group 


Change 

2008 2009 2010 2011 2011/10 in % 

Agriculture 6,672 6,486 6,637 6,859 222 3.3 

Energy 886 972 1,192 1,387 195 16.4 

Building Materials 6,500 6,463 6,562 6,698 136 2.1 

Other Activities 1,440 1,391 829 647 – 182 – 22.0 

BayWa Group 15,498 15,312 15,220 15,591 371 2.4

Consistently high trainee ratio 

of 9% 

Importance of CSR at BayWa 

BayWa Foundation since 1998 


Further training as a key success factor 

The training and achieving of qualifications by employees is an integral part of the BayWa Group’s personnel 

strategy. With trainee numbers averaging around one thousand and a trainee ratio of consistently 9%, the parent 

company BayWa in particular belongs to the group of companies which offer many training programs in Germanspeaking 

countries. The proportion of employees who have completed their training at BayWa in managerial 

positions is 40%, which is above average. 

Integration of handicapped employees within the Group 

The integration of handicapped employees into the working world is part of the corporate social responsibility 

particularly incumbent on large companies which can make a special contribution. BayWa fulfils this responsibility 

by offering suitable positions to more than 300 handicapped employees. Moreover, BayWa maintains a partnership 

with a rehabilitation centre for handicapped people. 

Corporate social responsibility (CSR) activities 

BayWa is committed to its social responsibility. The guidelines on social responsibility are defined in the company’s 

Articles of Association, its corporate guidelines, ethical principles and under its regulations on corporate governance. 

CSR has not been institutionalised as a department in its own right within the Group. It is more the case that the 

individual segments of the company also take account of the principles set out under CSR in their respective 

business activities, for instance through ecologically intact action, sustainability, the promotion of renewable primary 

materials, consumer protection and education, as well as dialogue fostered with various groups in society. 

BayWa practices values accepted in society in its daily activities throughout the whole Group and ensures their 

sustainable integration into business and society through ongoing dialogue with the public at large, stakeholders 

and interested parties. This ultimately serves to enhance the image and the value of the BayWa brand and to limit 

entrepreneurial risk. CSR measures therefore underpin the business development of the Group. 

Good corporate management management is ensured throughout the Group by applying the recommendations set 

out under the German Corporate Governance Code. BayWa’s understanding of economic responsibility includes 

transparent communication as part of its investor relations activities, maintaining ongoing dialogue with the various 

stakeholders, securing profitable growth in all business units and subsidiaries, as well as having an efficient risk 

and complaints management. Fair conduct towards one another, both within the company as well as with business 

partners, has been anchored in a set of ethical principles and is lived throughout the group. 

BayWa fulfils its ecological responsibility, both through its own activities and in its dealings with customers and 

suppliers. Within the Group itself, ecological aspects are taken account of through the use of renewable energies 

and renewable primary materials as well as environmentally compatible products, measures to curb the consumption 

of energy, waste management and efficient transport logistics. The customers and suppliers of BayWa are given 

support in their observance of environmentally sound principles through consultancy and other services. 

Sustainable personnel development, employment and job security, as well as health management, are an integral 

part of the social responsibility of the Group to society at large and to its employees. BayWa ranks among the 

leading companies in respect of training and continual professional development and has thus laid the cornerstone 

for its long-term success in human resource development. 

The BayWa Foundation, established in 1998, is an example of BayWa AG’s commitment to society and the 

environment. The BayWa Foundation places special importance on sustainability in its educational products which 

focus on renewable energies, food and nutrition in Germany, Romania, Asia and Africa. The guiding principle behind 

these projects is helping others to help themselves in order to ensure that the outcome and impact of projects 

do not simply dissipate but that the foundations are laid for better, sustainable and long-term potential for further 

development. The BayWa Foundation receives 100% of all donations as BayWa assumes its administration costs. 

Moreover, each euro donated is matched by BayWa and therefore doubled so that as many projects as possible can 

be implemented. In addition to its support of the BayWa Foundation, BayWa donates to social and cultural facilities 

and promotes the involvement of employees in associations, politics and society. 


67

68 


Reporting pursuant to Section 315 para. 4 of the German Commercial Code (HGB) 

Composition of subscribed capital 

The subscribed capital of BayWa AG amounted to €87,920,691.20 on the reporting date and is divided up into 

34,344,020 registered shares with an arithmetical portion of €2.56 each in the share capital. Of the shares issued, 

32,979,980 are registered shares with restricted transferability and 120,789 recently registered shares with 

restricted transferability (dividend-bearing employee shares from 1 January 2012 onwards). 1,243,251 shares 

are not registered shares with restricted transferability. With regard to the rights and obligations transferred by the 

shares (e.g. the right to a portion of the unappropriated retained earnings or to participate in the Annual General 

Meeting of Shareholders), reference is made to the provisions laid down under the German Stock Corporation Act 

(AktG). There are no special rights or preferences. 

Restrictions on voting rights and the transfer of shares 

Pursuant to Section 68 para. 2 of the German Stock Corporation Act, in conjunction with Article 6 of BayWa AG’s 

Articles of Association, the purchase of shares with restricted transferability by individuals and legal entities under 

civil and public law requires the approval of the Board of Management of BayWa AG. BayWa holds a small portfolio 

of registered shares (19,500 units) which, pursuant to Section 71b of the German Stock Corporation Act, do not 

carry voting rights as long as they are in BayWa’s possession. There are no other restrictions which relate to the 

voting rights or the transfer of shares. 

Holdings which exceed 10% of the voting rights 

On the reporting date the following shareholders held stakes in the capital which exceeded 10% of the voting rights: 

Bayerische Raiffeisen-Beteiligungs-AG, Beilngries 

Raiffeisen Agrar Invest GmbH, Vienna 

In supplementation of Section 84 et seq. of the German Stock Corporation Act, Article 9 of the Articles of Association 

of BayWa AG requires members of the Board of Management to be appointed by the Supervisory Board. Members 

of the Board of Management are appointed for a maximum term of five years, and reappointment is permitted. The 

Supervisory Board appoints the Chairman of the Board of Management. 

Pursuant to Section 179 of the German Stock Corporation Act in conjunction with Article 21 of the Articles of 

Association, amendments to the Articles of Association are always passed by the Annual General Meeting of 

Shareholders. 

Authorisation of the Board of Management relating in particular to the option of issuing 

or buying back shares 

Subject to approval by the Supervisory Board, the Board of Management is authorised to raise the share capital on 

or before 29 May 2013 by up to a nominal amount of €10,000,000 through the issuance of new registered shares 

against cash contribution. The authorisation can be used in part amounts. Shareholders’ subscription rights are 

excluded. Subject to approval by the Supervisory Board, the Board of Management is authorised to determine the 

further content and conditions under which the shares are to be issued. 

Furthermore, subject to the approval of the Supervisory Board, the Management Board is authorised to raise the 

share capital one or several times on or before 31 May 2015 by up to a nominal amount of €4,386,931.20 through 

the issuance of new registered shares with restricted transferability against cash contribution to the employees of 

BayWa AG and of affiliated companies within the meaning of Section 15 et seq. of the German Stock Corporation 

Act. Shareholders’ subscription rights are excluded. Subject to approval by the Supervisory Board, the Board of 

Management is authorised to determine the further content and conditions under which the shares are to be issued. 

Moreover, subject to approval by the Supervisory Board, the Board of Management is authorised to raise the share 

capital one or several times on or before 31 May 2016 by up to a nominal amount of €12,500,000 through the issuance 

of new registered shares with restricted transferability against cash contribution. The authorisation can be used in part 

amounts. Shareholders’ subscription rights are excluded. Subject to approval by the Supervisory Board, the Board of 

Management is authorised to determine the further content and conditions under which the shares are to be issued. 

The Board of Management has not been authorised by the Annual General Meeting of Shareholders to buy back shares. 

There are no agreements within the meaning of Section 315 para. 4 items 8 and 9 of the German Commercial Code. 


Responsible weighing up of 

opportunities and risks 

Risk reports as cornerstone of 

risk management system 

3 • Management Report on the Company and the Group • Opportunity and Risk Report 

IV. Opportunity and Risk Report 

Opportunity and risk management 

The policy of the BayWa Group is geared toward weighing up the opportunities against the risks of entrepreneurship 

in a responsible way. The management of opportunities and risks is an ongoing task of entrepreneurial activity 

designed to ensure the long-term success of the Group. This enables the BayWa Group to innovate, secure 

and improve what is already in place. The management of opportunities and risks is closely aligned to the 

BayWa Group’s long-term strategy and medium-term planning. The Group’s decentralised regional organisation 

and management structure enables it to identify trends, requirements, and the opportunities and risk potential of 

frequently fragmented markets at an early stage, analyse them and take action which is both flexible and market 

oriented. Moreover, the intense screening of market and of peer competitors is carried out continuously with a view 

to identifying opportunities and risks. This is flanked by ongoing communication and the goal-oriented exchange 

of information between the individual parts of the Group, which leverages additional opportunities and synergy 

potential. 

Principles of opportunity and risk management 

BayWa exploits opportunities which arise in the context of its business activities but, at the same time, also enters 

into entrepreneurial risks. The identification of entrepreneurial opportunities, the safeguarding of the assets and the 

enhancing of enterprise value therefore necessitate an opportunity and risk management system. 

The principles underlying the system set in place within the BayWa Group to identify and monitor risks specific to 

the business have been described in a risk management manual approved by the Board of Management. In addition, 

the Internal Audit Department regularly audits the internal risk management system which supports the processes. 

ISO certifications for the standardisation of workflows and for risk avoidance and the concluding of insurance 

policies supplement the Group’s management of risk. 

Moreover, the BayWa Group has established binding goals and a code of conduct in its corporate policy which 

have been implemented throughout the Group. They regulate the individual employees’ actions when applying the 

corporate values as well as their fair and responsible conduct towards suppliers, customers and colleagues. 

Opportunity and risk management within the BayWa Group 

In the BayWa Group, risk management is an integral component embedded in planning and management and 

control processes. The Group’s strategy aims, on the one hand, to make optimum use of opportunities while, on 

the other, identifying and limiting business-related risks. A comprehensive risk management system records 

and monitors both the development of the Group and any existing weak points on an ongoing basis. The risk 

management system covers all segments and is included as a key component of reporting. A particularly important 

task of risk management is to guarantee that risks to the Group as a going concern are identified and kept to a 

minimum. This enables the Group management to react swiftly and effectively. All units have risk officers and risk 

reporting officers who are responsible for implementing the reporting process. 

A cornerstone of the risk management system are the risk reports which are regularly prepared by the operating 

units. These reports are subject to evaluation by the Board of Management and by the heads of the business 

units. The systematic development of existing and new systems with a built-in warning component makes an 

indispensable contribution to strengthening and consistently building up a group wide opportunity and risk culture. 

A key component and, at the same time, an evolution of the opportunities and risk management system is the 

“Risk Board” which was implemented in the financial year 2009. Presided over by the Chief Executive Officer, the 

Risk Board, which consists of operations managers and support staff, meets to discuss and assess operational 

opportunities and risks on an ongoing basis. Minuted meetings are used to develop an understanding of the 

opportunities and risks and form the basis of the risk measurement applied to operational decisions. 


69

70 

Cyclical fluctuations lower than 

in other sectors 

Measures to limit risk 


The reporting process classifies opportunities and risks into categories, reports on these and estimates their 

probable occurrence and potential financial impact. The system is based on individual observations, supported by 

the relevant management processes, and forms an integral part of core activities. It starts with strategic planning 

and proceeds through to procurement, sales and distribution and, finally, to the management of receivables. As 

an extension of the planning process which takes place in the segments and in procurement, sales organisations 

and centralised functions, the opportunity and risk management system serves to detect and assess potential 

divergences from expected developments. In addition to identifying and assessing key developments influencing 

business, this system facilitates the prioritisation and implementation of activities. As a result, the BayWa Group can 

make better use of the opportunities while reducing the risks. 

Macroeconomic opportunities and risks 

General economic factors have an influence on consumer behaviour and investment patterns in BayWa’s core 

markets. However, these environmental factors exert less of an impact on BayWa than on other companies. The 

BayWa Group’s business model is geared primarily to satisfying fundamental human requirements, such as the 

need for food, shelter, mobility and the supply of energy. Accordingly, the impact of cyclical swings is likely to be less 

strong than in other sectors. At the same time, a company as well positioned as BayWa is even able to turn certain 

opportunities arising in times of crisis to its advantage through, for instance, the identification and acquisition of 

takeover candidates with a view to building up or expanding existing or new areas of business. BayWa is, however, 

unable to fully decouple from any severe setbacks to international economic development such as those feared 

from an escalation of the eurozone debt crisis. 

Sector and company-specific opportunities and risks 

Changes in the political framework conditions such as, for example, changes in the subsidies of agricultural products 

or tax-related government subsidies of energy carriers, as well as globalised and volatile markets harbour risks. 

At the same time, however, they open up new prospects. Extreme weather conditions can have a direct impact on 

offerings, pricing and trading in agricultural produce and also downstream on the operating resources business. 

Global climate changes also have a long-term effect on agriculture. The global demand for agricultural products, 

particularly grain, continues to grow, which may give rise to a sustained price uptrend. The development of income 

in the agriculture sector filters through directly to investment capacity and propensity and therefore to the sale 

of high-end agricultural machinery. Political and economic factors exert the main influence on demand in the 

construction sector. Political factors of influence include, for instance, special regulations on the depreciation of 

listed buildings and measures to subsidise improvements to energy efficiency. At the same time, the ageing housing 

stock in Germany will encourage growing demand for modernisation and renovation. In the energy business, the 

field of renewable energies is particularly influenced by changes to promoting measures. After the 15% cuts to the 

feed-in tariffs for photovoltaic electricity at the start of this year, there are discussions about further curtailments 

in 2012 in addition to the second reduction of 15% planned at mid-year. Against this backdrop, the reliability of 

revenues and earnings is supported by distributing the risk in markets still dependent on subsidising policies. 

Price opportunities and risks 

BayWa trades in merchandise which displays a very high price volatility, such as grain, fertilisers and mineral oil, 

especially in its Agriculture and Energy segments. The warehousing of the merchandise, the signing of delivery 

contracts and the acquisition of merchandise in the future means that BayWa is also exposed to the risk of prices 

fluctuating. Whereas the risk inherent in mineral oils is relatively low due to the BayWa’s pure distribution function, 

fluctuations in the price of grain and fertilisers may incur greater risks, also owing to their warehousing, if there is no 

maturity matching in the agreements on the buying and selling of merchandise. If there are no hedging transactions 

existing at the time when the agreement is signed, the ensuing risk is monitored on an ongoing basis and controlled 

by the respective executive bodies. Whenever necessary, appropriate measures to limit risk are initiated. BayWa also 

operates as a project developer in the field of renewable energies. This business harbours a risk that, for instance, 

the planning and building of wind farms, solar and biogas plants are delayed and that they may be connected to 

the grid later than originally planned. In such cases, and if the deadline for the further reduction in feed-in tariffs is 

not adhered to, there is a price risk, as the plant can no longer be sold at the price originally envisaged because the 

economic parameters have changed. 


Hedging of positions denominated 

in a foreign currency 

Important financing function in 

respect of agricultural trading 

partners 


Currency opportunities and risks 

BayWa’s activities are largely located in the eurozone. If foreign currency positions arise from goods and services 

transactions these are always hedged without delay. Payment obligations from company acquisitions denominated 

in a foreign country are hedged at the time when they arise. Speculative borrowing or investing bonds denominated 

in foreign currencies is prohibited. 

Share price opportunities and risks 

The BayWa Group’s investment portfolio comprises direct and indirect investments in listed companies. Equity 

investments are continuously monitored on the basis of their current market values. 

Interest rate opportunities and risks 

Interest rate risks result from the Group’s floating-rate financing, particularly from the issuing of short-dated 

commercial paper and short-term loans. Short-term debt is used mainly to finance working capital. To reduce 

the interest rate risk, BayWa uses derivatives instruments in the form of interest rate caps and swaps. The 

BayWa Group’s financing structure with its matching maturities ensures that interest-related opportunities are 

reflected within the Group. 

The bonded loan issued in 2011 was offered featuring a fixed and variable interest coupon which results in natural 

interest rate hedging. 

Regulatory and legal opportunities and risks 

Changes in the regulatory environment can affect the Group’s performance. One such example is government 

intervention in the general framework for the agricultural industry. Negative impacts emanate from the reduction 

or abolition of subsidies. Conversely, new regulatory and legislative developments influencing bioenergy can also 

result in opportunities. In the construction sector, changes to building or fiscal regulations may also have an impact 

on the development of business. 

The companies of the Group are exposed to a number of risks in connection with litigation in which they are 

currently involved or may be involved in the future. Law suits come about in the course of normal business activities, 

in particular in relation to the assertion of claims from services and deliveries which are not up to standard or from 

payment disputes. The companies of the BayWa Group form reserves for the event of such legal disputes if the 

occurrence of an obligation event is probable and the amount can be adequately estimated. In the individual case, 

actual utilisation may exceed the reserve amount. 

Credit risks 

As part of its entrepreneurial activities, the BayWa Group has an important function as a source of finance to 

its agricultural trading partners. In the context of so-called cultivation contracts, the companies of the Group 

are exposed to a financing risk arising from the upfront financing of agricultural resources and equipment, the 

repayment of which is made through acquiring and selling the harvest. In addition, BayWa provides financing in a 

considerable scope to commercial customers, particularly in the construction sector, in the form of payment terms. 

Beyond this, there are the customary default risks arising from receivables. Risks are kept to a minimum by way of 

an extensive debt monitoring system which spans all business units. To this end, credit limits are defined through a 

documented process of approval and monitored on an ongoing basis. 

Liquidity risks 

The liquidity risk is the risk that the BayWa Group may not – or only to a limited extent – be able to fulfil its 

financial obligations. In the BayWa Group, funds are generated by operations and by borrowing from external 

financial institutions. In the reporting year, for instance, the market price-induced increase in funds committed to 

inventories and the higher level of the receivables portfolio were compensated by the utilisation of external sources 

of finance. In addition, financing instruments, such as multi-currency commercial paper programmes or assetbacked 

securitisation and bonded loans are used. Existing credit lines are therefore measured to an extent deemed 

sufficient to guarantee business performance at all times – even in the event of growing volume. The financing 

structure therefore takes account of the pronounced seasonality of business activities. Owing to the diversification 

of the sources of financing, the BayWa Group does not currently have any risk clusters in liquidity. 

Placing another bonded loan in 2011 contributes to diversifying the maturity profile. 


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72 

BayWa Group with larger credit 

facilities 

Extensive training and continuous 

professional development 

Organisational segregation of data 

protection officer 

Limited and manageable risks 


Rating of the BayWa Group 

The banking sector has awarded the BayWa Group a very positive rating. This achievement is due to the solidity of 

the company as well as to its long and successful history and high enterprise value, underpinned by assets such as 

real estate. BayWa was therefore able to raise its credit facilities in 2011. In the fourth quarter, it took advantage of 

the market environment to issue another bonded loan. This measure raises the financial leeway of the BayWa Group 

and smooths the maturity profile. From a cost-benefit standpoint, BayWa consciously dispenses with the use of an 

external rating. 

Opportunities and risks associated with personnel 

As regards personnel, the BayWa Group competes with other companies for highly qualified managers as well as for 

skilled and motivated staff. The Group requires qualified personnel in order to secure its future success. Excessively 

high employee fluctuation, the brain drain and failure to win junior staff loyalty may have a detrimental effect on 

the Group’s business performance. BayWa counteracts these risks by offering its employees extensive training 

and continuous professional development in order to secure expertise. Management based on trust, the tasking 

of employees in line with their natural talents and abilities, as well as the definition and adherence to our ethical 

principles create a positive working environment. 

At the same time, BayWa AG promotes the ongoing vocational training and development of its employees. With 

more than a thousand trainees, the Group is among the largest companies offering training specifically in rural 

areas. BayWa recruits a large majority of its future specialist and managerial employees from the ranks of these 

trainees. Long years of service to the company are testament to the great loyalty shown by BayWa personnel to 

“their” company. This attitude creates stability and continuity and also secures the transfer of expertise down the 

generations. 

IT opportunities and risks 

The use of cutting-edge IT characterises the entire business activity of the BayWa Group. All key business processes 

are supported by IT and mapped using state-of-the-art software solutions. In a trading company with high numbers 

of employees, having work processes supported electronically is absolutely imperative. The continuous monitoring 

and reviewing of processes mapped electronically, however, involves more than the mere implementation of new 

IT components. It is always accompanied by an optimisation of process workflows, as a result of which opportunities 

in the form of energy and cost savings potential can be identified and realised. At the same time, the risk inherent 

in the system rises in tandem with the growing complexity and dependency on the availability and reliability of the 

IT systems. 

To realise the opportunities and minimise the risks, the IT competence of the BayWa Group is kept at a consistently 

high level. The resources are combined under RI-Solution GmbH, a company belonging to the Group which 

provides the Group companies with IT services to the highest standard. Extensive precautionary measures such as 

firewalls, virus protection updated on a daily basis, disaster recovery plans and training in data protection serve to 

safeguard data processing. Segregated in organisational terms, a data protection officer monitors compliance with 

security and data protection standards. 

Assessment of the opportunity and risk situation by Group management 

An overall assessment of the current opportunity and risk situation shows that there are no risks which could 

endanger the Group as a going concern. There are currently no such risks discernible for the future either. All in all, 

the risks to the BayWa Group are limited and manageable. 

Along with potentially non-influenceable or only indirectly influenceable global policy risks and macroeconomic 

risks, operational risks are also the focus of monitoring. As far as the latter are concerned, the BayWa Group has 

taken appropriate measures to manage and control these risks. 


Professional and certified 

control system 

Committed to a corporate 

code of conduct 


Internal Control System for accounting processes 

The Internal Control System (ICS) which monitors accounting processes is also a key component of opportunity 

and risk management. The BayWa Group has set in place a professional control system, which has been certified in 

many areas, comprising measures and processes to safeguard its assets and to guarantee the presentation of a true 

and fair view of the result of operations. 

The annual consolidated financial statements are drawn up through a centralised process. Compliance during this 

process with legal framework conditions and rules and regulations defined under the Articles of Association is 

guaranteed by the prescribed accounting standards. Corporate Accounting also acts as a direct point of contact for 

the managers of the subsidiaries in respect of reporting and for the annual and quarterly financial statements, and 

draws up the consolidated financial statements under IFRS. 

A control system which monitors the accounting process ensures the complete and timely capturing of all 

business transactions in accordance with the statutory provisions and the regulations laid down under the Articles 

of Association. Moreover, it serves to guarantee that stocktaking is duly and properly performed and that assets 

and liabilities are recognised, valued and disclosed appropriately. The control system uses both IT-based and 

manual control mechanisms to fully ensure the regularity and reliability of accounting. Moreover, suitable control 

mechanisms, such as strict compliance with the principle of dual control and analytical analyses, have been installed 

in all processes relevant for accounting. All accounting-related processes are also audited by Internal Audit which is 

independent of such processes. 

The obligation of all subsidiaries to report their figures every quarter on an IFRS basis in a standardised reporting 

format to BayWa enables target-performance divergences to be identified swiftly, thereby offering an opportunity of 

taking action at short notice. 

Corporate Accounting monitors all processes relating to the consolidated financial statements as part of quarterly 

reporting, such as the capital, liabilities, expenses and income consolidation and the elimination of inter-company 

results, in conjunction with the reconciliation of the Group companies. 

The departments and units of the Group involved in the accounting process are suitably equipped in terms of 

quantity and quality, and training courses are regularly conducted. 

The integrity and responsibility of all employees in respect of finance and financial reporting is ensured through 

taking each employee under obligation to observe the code of conduct adopted by the respective company. 

The employing of highly qualified personnel, concerted and regular training and continuous professional 

development, along with stringent functional segregation in financial accounting in the preparing and booking of 

vouchers as well as in controlling is guaranteed through compliance with local and international accounting rules 

in the annual and consolidated financial statements. 


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74 

Stake of 70% in Tecno Spot GmbH 

Turners & Growers in New Zealand 

New Zealand’s market leader in the 

sale and export of fresh fruit 

3 • Management Report on the Company and the Group • Significant Events after the Reporting Date 

V. Significant Events after the Reporting Date 

With effect from 1 January 2012, BayWa took over the filling station and mineral oil business of Leberzammer 

GmbH & Co. KG, Gunzenhausen, by way of an asset deal. The provisional cost of purchase of the assets transferred 

comes to €0.160 million. 

The agreed purchase prices break down as follows: 

In € million Purchase price 

Intangible assets 0.125 

Property, plant and equipment and inventories 0.035 

Total purchase price 0.160 

The intangible assets purchased correspond to the customer base purchased. There was no goodwill from the 

acquisition. 

BayWa took over the customer base of Gustav Baumann GmbH, Coburg, by way of an asset deal with effect from 

1 January 2012. The provisional cost of purchase of the assets transferred comes to €0.060 million. There was no 

goodwill from the acquisition. 

BayWa AG acquired 70% of the shares in Tecno Spot GmbH, Bruneck, Italy, through its lower-tier subsidiary MHH 

Solartechnik GmbH, Tübingen, with effect from 1 February 2012. The transaction marks the Group’s entry into 

the Italian photovoltaic wholesale business. Tecno Spot GmbH is a wholesale company specialised in photovoltaic 

systems. The seller is Gremes GmbH which will remain invested with 30% of the shares in Tecno Spot GmbH. 

The purchase price of the shares comes to approximately €8 million, plus a performance-related component of 

a maximum €14.5 million to be paid out over the next three years. Anti-trust authority approval of the sale is still 

pending. 

Tecno Spot GmbH, which was founded in 1998, is an established premium supplier which covers the entire system 

integration value chain in the wholesale business for photovoltaic plants. It is a high-growth company with a strong 

footing in the market and sold more than 50 megawatts worth of photovoltaic plants in the financial year 2010, 

generating revenues of around €146 million. In the last three years, the company has doubled its workforce to 

30 employees. Tecno Spot GmbH has been represented in Austria through its subsidiary GE-TEC GmbH since 

2008 and in the US since 2009 through Tecnospot Solar USA, Inc., which was established in that year. 

Munich-based BayWa AG is poised to enter the international fruit market in New Zealand and intends to acquire 

63% of the shares in Turners & Growers Ltd (T & G), Auckland, New Zealand. This acquisition will enable BayWa AG 

to become a global player in the supply of pome fruit. The international trading group has already come to an 

agreement with Guinness Peat Group plc, London, UK, T & G’s major shareholder, on the acquisition of its 63% 

interest. In the context of New Zealand’s legal provisions, the acquisition will be part of a takeover offer to acquire 

up to 100% of the share capital of T & G at a price of NZD1.85 per share. The purchase price will be in the range 

of NZD137 million (€79 million) and NZD216 million (€125 million), depending on the takeup rate of T & G 

shareholders. The transaction is still subject to approval by the German anti-trust authority and New Zealand’s 

Overseas Investment Office. 

T & G’s presence on five continents will enable BayWa AG to expand its offer in the fruit business and gain access 

to the world’s high-growth markets, particularly in Asia where T & G is already established. T & G is New Zealand’s 

leading distributor, marketer and exporter of premium fresh fruit. In addition, the company holds the exclusive brand 

rights to the global cultivation and sale of the Jazz and Envy apple varieties as well as the ENZAGreen, ENZAGold 


3 • Management Report on the Company and the Group • Remuneration Report 

and ENZARed kiwi varieties. Moreover, T & G holds a 70% stake in Delica NZ, New Zealand’s largest exporter of 

fresh fruit and sole exporter of ENZA dessert fruit to Asia. The company operates as a trading platform for apples in 

South America, the US, South Africa, Asia and Europe. 

T & G was founded in 1897 and has around 1,400 employees groupwide. The international company is listed on the 

New Zealand Stock Exchange and generated annual revenues of €346 million in 2010. Its core business includes 

the collection, storage and sale of apples, kiwis and tomatoes. 

VI. Remuneration Report 

The remuneration report is part of the Management Report on the Company and explains the system of 

remuneration for members of the Board of Management and the Supervisory Board. 

Total remuneration of the Board of Management 

The remuneration system, including the main contractual components, is reviewed by the Supervisory Board once a 

year and adjusted if necessary. 

Since 1 January 2010, the remuneration of members of the Board of Management has comprised an annual fixed 

salary, a short-term variable component (annual bonus) and a long-term variable component (known as the bonus 

bank). The ratio of fixed to variable short-term remuneration and long-term variable remuneration is roughly 50 

to 20 to 30 based on full (100%) achievement of goals. The non-performance related component comprises 

an annual fixed salary and benefits, such as the use of a company car and contributions to accident and health 

insurances. Short-term variable remuneration takes the form of an annual bonus. The amount of this bonus depends 

on the extent to which objectives, determined by the Supervisory Board and geared, on the one hand, to the 

successful development of the company’s business (earnings before tax) and, on the other, to individually agreed 

goals, are achieved. If the targets are achieved, the agreed bonuses are paid out in full. If the targets are exceeded, 

the bonus will be increased but only up to a maximum amount (cap) of 150%. If the targets are not fulfilled, the 

bonus will be reduced proportionately. Both negative and positive developments are therefore taken into account in 

calculating short-term variable remuneration. 

The long-term variable component takes the form of a so-called bonus bank. The bonus bank will be supplemented 

or charged on a yearly basis depending on the extent to which objectives, linked to the success of the company 

(earnings before tax) and determined by the Supervisory Board for three years in advance, have been achieved, 

overachieved or underachieved. If objectives are overachieved, the amount which can be transferred to the 

bonus bank is capped at 150% of the target figure. If there is a credit balance on the bonus bank, one third will be 

provisionally paid out per year to the respective member of the Board of Management. If, owing to payments made 

in previous years or a charge reducing the bonus bank, there is a negative balance on the bonus bank, the respective 

Board members are obliged to pay back the provisional payments made in the two preceding years. Both negative 

and positive developments are therefore also taken into account in calculating long-term variable remuneration. 

Alongside the agreed cap on both components of remuneration, there is also a cap imposed for extraordinary 

developments. 

In addition, there are pension commitments for the members of the Board of Management. These commitments are 

based partly exclusively on the most recent fixed salary (5% or 30%), and partly on the number of years of service 

to the company (with increases limited to 35% and 50% of the salary most recently received). The retirement 

age has been set at 65 years (full year). As per 1 December 2011, obligations from pension commitments were 

partly transferred to an external pension fund in the form of an earned entitlement. Running payments made to the 

pension fund are included in the overall remuneration disclosed for the Board of Management. 


75

76 

3 • Management Report on the Company and the Group • Remuneration Report 

There are no commitments in the employment contract of the Board members if service to the company is 

prematurely terminated. There are also no Change of Control clauses. 

The total remuneration of the Board of Management comes to €5.238 million (2010: €7.281 million); of this 

amount €2.268 million (2010: €2.522 million) is variable. Contributions amounting to €0.402 million (2010: 

€0.325 million) were paid in benefits accruing after termination of the employment contract (pensions). 

The remuneration of the Board of Management is not itemised. Instead it is divided up into fixed and variable/ 

performance-related amounts and disclosed once a year in the Notes to the Consolidated Financial Statements 

(reason given in the Declaration of Conformity). The relevant resolution was passed by the Annual General Meeting 

of Shareholders in accordance with Section 286 para. 5 of the German Commercial Code on 18 June 2010 (Code 

Item 4.2.4). For more information on the remuneration, reference is made to the Separate Financial Statements and 

the Consolidated Financial Statements. 

Remuneration of the Supervisory Board 

The remuneration of the Supervisory Board is based on the responsibilities and the scope of tasks of the members 

of the Supervisory Board as well as the Group’s financial situation and performance. 

Since 1 January 2010, members of the Supervisory Board have received fixed annual remuneration of €10,000, 

payable at the end of the year, plus variable remuneration of €250 for each cash dividend portion of €0.01 per share 

approved by the Annual General Meeting of Shareholders which is distributed in excess of a share in profit of €0.10 

per share. Variable remuneration is due and payable at the end of the Annual General Meeting of Shareholders 

which has passed a resolution on the aforementioned cash dividend portion. 

The Chairman of the Supervisory Board receives three times the amount and the Vice Chairman twice the amount 

of remuneration paid as described in the paragraph above. Additional fixed remuneration of €2,500 is paid for 

committee work. The chairmen receive three times the respective amount. 

Supervisory Board members who serve on the Supervisory Board and/or its committees for only part of the 

financial year will receive remuneration on a proportionate basis. 

In addition, they are reimbursed for their expenses and value added tax which falls due during their activities as 

members of the Supervisory Board or its committees. Moreover, Supervisory Board members will be included in 

any D&O insurance taken out in the interest of the company covering personal liability in an appropriate amount. 

The company pays the insurance premium. 

The total remuneration of the Supervisory Board comes to €0.538 million (2010: €0.463 million), of which 

€0.250 million is variable (2010: €0.192 million). 

Disclosure of remuneration paid to the members of the Supervisory Board in the Notes to the Consolidated 

Financial Statements has not been itemised (reason given in the Declaration of Conformity). 


Economic growth in 2012 and 2013 

expected to be lower 

Growth of 0.6% anticipated for 

German GDP 

Another contraction in grain 

inventories 

3 • Management Report on the Company and the Group • Outlook 

VII. Outlook 

Macroeconomic outlook 

After its dynamic pace in 2010, economic growth slowed steadily over the course of 2011. Against the background 

of the euro debt crisis and the high budget deficit and level of debt in the US, Japan and the UK, lower growth is 

anticipated for the years 2012 and 2013. The World Bank revised its global growth forecast for 2012 and 2013 

downwards in January, by 3.6% respectively to 2.5% for the current year and to 3.1% for the following year. Growth 

in the gross domestic product (GDP) of the industrial nations is likely to contract again by an average 1.4% in 2012, 

with only a slight increase of 2.0% in 2013. The World Bank even expects economic output to decline on average 

by 0.3% in the eurozone this year due to huge pressure to consolidate public finances in a number of countries. 

It forecasts growth at a mere 1.1% in 2013. The US anticipates overall economic growth of 2.2% in 2012, with 

a marginal acceleration in 2013 to 2.4%. In contrast, the economies of developing and emerging markets will 

continue to grow more swiftly than the overall global economy, posting rates of 5.4% and 6.0% respectively. 

This year’s outlook for the German economy is also initially dampened by the international debt crisis. Budget 

constraints in many countries are braking the economy, thereby narrowing the export opportunities of German 

industry. Provided that the eurozone crisis starts to ebb from the spring onwards, the German Institute for Economic 

Research (DIW) anticipates a growth of only 0.6% in Germany’s GDP in 2012. The DIW considers a real economic 

growth of 2.2% achievable in 2013. The comparatively robust development in the German labour market and the 

slowing in the price uptrend should lead to an increase in private consumption of 1.1% in 2012, with another rise of 

1.4% in 2013. In terms of public-sector spending, growth has been predicted at 1.4% in 2012 and 1.2% in 2013. 

In contrast, capital investment is set to decline by 0.4% in 2012, as opposed to the rise of 4.1% anticipated in 2013, 

supported by stronger propensity to invest. Exports are set to grow by only 2.9% in 2012 and will only pick up 

momentum in 2013, increasing by 6.1%. 

Overall economic expansion in Austria will also slow this year. GDP growth has been estimated at 0.4%, impacted 

in particular by stagnating industrial production, capital expenditure with an increase of a mere 0.9%, and exports 

which will be lower at 2.8%. In 2013, economic growth is likely to accelerate to 1.6%, boosted by a 3.5% increase in 

industrial output and a higher level of exports at 6.4%. 

Outlook for the development of the sectors 

Outlook for the agriculture sector 

The long-term trend of agricultural produce will be determined by a steady increase in the growing global 

population’s need for food in the face of dwindling arable land per capita. Given the limited amount of land 

cultivation, this increase will necessitate a greater yield per hectare and require farming operations to become 

more efficient. It can therefore be assumed that the uptrend in the price of agricultural produce will hold steady 

overall in the future. The globalisation of the markets for agricultural produce and the growing interest of financial 

investors in the agricultural commodities investment class will keep the volatility of price trends high. 

The grain harvest in the 2010/11 calendar year came to 2,200 million tons, which is just under 2% short of the 

year-earlier volume of 2,240 million tons. Consumption stood at 2,230 million tons, thus exceeding production 

and causing a depletion in global inventories of around 30 million tons. Current forecasts predict a higher harvest 

volume, up by around 4% to 2,280 million tons, in the 2011/12 grain year. However, with consumption rising to 

an estimated 2,285 million tons, inventory levels and the coverage of the inventory stocks will continue to fall. A 

slight increase in consumption is anticipated in the EU in the grain year 2011/12. Despite fewer exports, there will 

be another decline in the balance of inventories. Inventories currently amount to 36.6 million tons, their lowest 

level since 2003, and cover demand for a mere 48 days. Although harvest volumes have risen substantially since 

the grain year 1999/2000, production has exceeded consumption in only four of the last twelve years. Given that 

consumption is growing on an annual basis, grain prices are likely at minimum to remain stable at the current level. 

Against the backdrop of the comparatively high harvest yields in the past years, prices respond with greater volatility 

to signs that the harvest volumes will be lower. 


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78 

Prospects for the sector positive 

in the longer term 

Visible trend towards energy savings 

in the heating market 

Lubricants expected to deliver stable 

revenues 


The increase in the price of agricultural operating resources held steady throughout the whole of 2011 on the back 

of greater demand. The sale of potassium and phosphate fertilisers rose by 20% and 22% respectively, thereby 

reattaining the level of the marketing year 2008/09. Farmers were nonetheless able to improve their income 

situation significantly in 2011 as the cost of fertilisers was much lower than the levels posted in 2008 which marked 

the start of a phase of excessive prices. The price trend is expected to remain stable in 2012 as well. Good producer 

prices are also an incentive to buy fertilisers as their application raises the yield per hectare. Moreover, the use of 

fertilisers generally enhances the quality of produce which means that higher prices can be commanded in the 

market. The commercial viability of using fertilisers is likely to keep demand running high as the additional costs of 

fertilisers can be compensated by a correspondingly positive development in producer prices. As regards feedstuff, 

prices declined somewhat, especially for compound feedingstuffs, at the start of the marketing year 2011/12 

following the sharp increase in the marketing year 2010/11. A stable development of the current price level can 

be expected at minimum since, if prices continue to fall, alternative uses, such as for the production of energy, will 

become more attractive again. 

The medium- and long-term positive factors of influence, especially global growth in the demand for agricultural 

commodities for food and the production of energy from renewable primary products, will continue to hold sway 

in the years ahead. Europe is set to benefit with it sophisticated technical know-how in production, well-equipped 

farms and balanced climate conditions. 

As in 2010, the agricultural equipment business benefited from the improved income situation of farmers in the 

reporting year. Based on current developments in the market for the main agricultural products, it can be assumed 

that, on average, the economic situation of agricultural operations will at minimum remain stable at a high level 

in 2012. According to surveys conducted, investment propensity is somewhat lower than in 2010: 40% of farms 

intend to make investments in the near future (2010: 43%). However, a significant increase in investments in 

machinery and equipment has been observed since the summer of 2011. The aggregated investment volume, 

estimated at €5.5 billion, is therefore around €1.7 billion lower than in the previous year. This decline is, however, 

mainly attributable to investments in renewable energies which surged in 2010 due to the boom in solar plants and 

systems. In an environment where product prices are adequate the willingness of farmers to invest can be expected 

to remain high even if they fall short of the level achieved in 2011. The longer-term outlook for the sector remains 

positive as the growing global demand for food and agricultural commodities can only be satisfied if agricultural 

production is stepped up by the associated use of technology to enhance efficiency. 

Outlook for the energy sector 

In the business of conventional energy carriers, demand for fuels, heating materials and lubricants is generally 

subject to cyclical fluctuations depending on the oil price trend, weather conditions and economic activities. In the 

heating market for fossil-based primary energy carriers, a visible trend has emerged in recent years towards saving 

energy through improving the insulation of buildings and supplementing the supply of warm water and heating 

through sources of renewable energies. This also includes a growing use of gas. With current tank capacities, this 

allows private households greater leeway in covering their needs and flexibility as to when they fill their tanks. This 

makes predictions on the future development of demand and sales based on the average selling level of tanks more 

difficult. Sudden cold snaps do not therefore necessarily trigger a surge in demand. Instead, consumers are seizing 

opportunities from market price fluctuations to fill their tanks. Moreover, the proportion of other energy carriers 

in the heating market is rising to the detriment of oil. All in all, the structurally-induced decline in the consumption 

of heating oil is around 5% a year. BayWa is counteracting this fundamental trend by expanding its sales territory 

through acquiring heating fuel traders in order to keep sales volumes as stable as possible. In the vehicle fuel 

business, sales volumes are likely to decline slightly, despite the greater numbers of vehicles, owing to the lower 

average consumption of new vehicles and lower distances travelled because of the expensive fuel prices. As regards 

lubricants, the robust development of the German economy suggests that sales will remain stable. 


Way paved for long-term sustainable 

growth 

Lower growth rates than in 2010 


In the area of renewable energies, the course has been set for long-term growth through political decisions. The 

Energy Concept 2050, passed in the autumn of 2010, provides for an increase to 80% in the mix of renewable 

energies in electricity production in Germany by the year 2050. The target in the EU has been set at a minimum of 

30% to be achieved by the year 2020. BayWa has defined the BayWa r.e business line as a strategic growth area. A 

sales contribution of €1 billion is to be generated by this business in the medium term. The development and use 

of renewable energies is, however, still dependent on government promotion. Changes in the measures promoting 

renewable energies therefore trigger pronounced fluctuations in the relevant market segments. BayWa pursues 

a strategy of double diversification to reduce its dependency on changes in the subsidy policies of the individual 

countries and on the different forms of renewable energy carriers. With this in mind, the internationalisation of 

BayWa r.e’s business was stepped up in 2011: BayWa r.e is now represented in eleven countries. With activities in 

the field of project development, building and trading in solar power plants, wind farms and biogas power plants, the 

company now operates in all forms of power generation through renewable energies. 

Outlook for the construction sector 

The prospects for the construction industry in Germany remain upbeat in 2012 although growth rates will be lower 

than in the previous year. Following a growth in construction investments of 5.4% in 2011, an increase of 1.5% 

has been forecast for 2012. Above all, based on the high number of building permits granted in 2011, further 

growth of 3.0% has been predicted in residential construction, which makes up around 57% of overall construction 

investments. Non-residential building is also expected to rise slightly by 0.7%. Growth will be driven mainly by 

commercial construction, which is expected to rise 2.0% over the previous year’s figure, as opposed to building 

activity in the public sector which will decline by 5.0% due to the expiry of economic stimulus programmes and 

pressure to consolidate the public budget. After strong growth in 2011, investments in civil engineering will see a 

decline of an overall 2.2% in 2012, with no positive impetus expected from the commercial or public sector. Overall 

construction investment is expected to rise again by 2.0% in 2013. Investments in residential construction are likely 

to grow by another 3.0%. Non-residential construction is set to pick up momentum in the commercial segment 

with a growth of 2.0%. In contrast, public-sector investments will contract by another 3.5%. All in all, non-residential 

building will therefore post a growth of 1.0% in 2013. In the light of stagnating commercial investments and another 

downturn in public-sector building, civil engineering is likely to fall by 0.5%. 

An increase of only 0.4% and 1.0% in the years 2012 and 2013 respectively are anticipated for construction activity 

in Austria. The low growth forecast for the year 2012 is also partly a consequence of construction and renovation 

measures brought forward to 2011 due to the favourable weather conditions in autumn. Factors exerting pressure 

are above all budget constraints from curbing debt and austerity packages in the public sector as well as cuts in 

government subsidies. Residential construction is expected to grow by 0.7% in 2012. Commercial construction is 

set to deliver the greatest growth of 0.9%. In contrast, a decline of 0.4% has been predicted for civil engineering. 


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80 

Grain imports to Germany possible 

for the first time in 2012 

Plans for streamlining locations 

Organisational realignment with 

separate brand management 


Anticipated development of BayWa’s segments 

Outlook for the Agriculture Segment 

BayWa’s Agriculture Segment has put an exceptionally good year behind it. Although harvest volumes in many areas 

of Germany fell below the year-earlier figures, the regions relevant for BayWa reported generally satisfactory harvest 

yields. The average selling prices of agricultural produce continued to improve compared with the previous year, 

and cost increases for operating resources remained below the increases in producer prices. In this environment, 

BayWa’s Agricultural Trade Business Unit achieved above-average success in its trading operations, not least due 

to the strong subsequent storage and collection business in the first half of 2011. For the first time for several 

years, Germany may have to rely on grain imports in 2012. One of the reasons is the greater cultivation of maize 

for producing biogas to the detriment of other grain types, which may influence the trading volume of wheat. 

On the price front, the higher selling prices of agricultural produce can be expected to be permanent, as even in 

exceptionally high-yield years the focus of harvest volumes will decline in the face of steady growth in demand. 

However, given the high price level already reached, price hikes in the next two agricultural years are not expected 

to match those of the two recent years. Price increases for operating resources are also likely to remain within a 

narrow range. It can generally be assumed that agricultural trade in 2012 and 2013, including growth in the fruit 

business, will be marginally higher than the already good level reached in 2011. Plans to streamline locations under 

which BayWa will incorporate its agri-trading in around 200 efficient and modern locations throughout Germany 

through to the year 2015 can be expected to contribute to this. Giving accurate guidance is, however, difficult as 

developments in the markets may also be volatile due to unforeseeable events. 

Although the income of farmers is likely to remain stable or even rise, their propensity to invest is expected to be 

somewhat lower. In the sale of new machinery and equipment, however, the agricultural equipment business may 

well be able to repeat the high level achieved in 2011. BayWa got off to a good start in the financial year 2012 

with an above-average order book. Positive impetus will also emanate from the realignment of the business, with 

separate brand management of the CLAAS and AGCO (with the Fendt, Massey Ferguson, Valtra and Challenger 

brands). CLAAS is now offered throughout the whole of BayWa’s home market, and the product range was 

extended. AGCO’s offering now includes harvesting machinery, alongside tractors. Additional business potential 

has been leveraged from adding the hay harvesting machinery of McHale, a specialist company based in Ireland, 

to the range. The extensive investments made in previous years in the service business and the increasing use of 

new technologies is likely to incur a greater need for workshop services. Across the whole product range, BayWa 

expects revenues from agricultural machinery in the 2012 and 2013 to be marginally below the level of 2011. 

Farmers’ investment ability and willingness, however, fluctuates strongly as it is exposed to varying harvest yields 

and volatile selling price trends. Consequently, there may be considerable divergences in actual development 

from the assumptions underlying guidance for the years 2012 and 2013. The medium- to long-term outlook for 

the Agricultural Equipment Business Unit remains upbeat as the driving trends, such as the emergence of large 

operating entities, the necessity of raising productivity and the reduction in agricultural subsidies envisaged in the 

EU from 2013 onwards, will require agricultural equipment to be used to an increasing extent. 

All in all, BayWa anticipates sales volumes in the Agriculture Segment in 2012 that will, at a minimum, repeat the 

level of the previous year. Structural improvements should allow the operating result to match the good year-earlier 

level as well. In particular, the acquisition of a majority holding in the New Zealand fruit trading company Turners & 

Growers will make a contribution to revenues and profit. In principle, it can be assumed that BayWa’s Agriculture 

Segment will continue to perform well in 2013 on the existing strong basis. As part of the strategic goals, further 

growth in revenues and profit is targeted. The revenues and profit trend will, however, be determined in the main 

by how prices for agricultural commodities develop in the market, which is largely beyond the scope of influence of 

BayWa. 


Demand backlog in the heating 

market 

BayWa r.e well positioned for the 

future 


Outlook for the Energy Segment 

Following the surge in the price of crude oil to just under USD127 at the start of 2011, coupled with the unrest in 

a number of North African countries and in Bahrain, the oil price settled over the remainder of the year within a 

range of USD105 and USD115 per barrel. From today’s standpoint, and in view of the lacklustre expectations of 

global economic growth, it can be assumed that the crude oil price will remain relatively stable at a high level since, 

apart from the impact of unforeseeable political events such as an escalation of the nuclear dispute with Iran, there 

will be a lack of stimulus in 2012. Reticent demand in the heating market in the past two years is likely to result in 

a certain backlog in demand. BayWa anticipates higher sales volumes in 2012 in comparison with the previous 

year. However, the opportunistic order patterns of consumers will place a burden on operating margins. The sale of 

wood pellets is likely to rise in 2012, boosted by an increase in the number of heating systems installed and ongoing 

brisk interest in this sort of environmentally compatible energy. In view of the persistently high price level, the 

fuel business can be expected to generate sales volumes that are marginally lower. A positive impact on BayWa’s 

business will emanate from the modernisation of the filling station network, which has now been completed, 

and through the sale of additional products such as the AdBlue fuel for trucks and liquefied petroleum gas. The 

lubricants business is expected to deliver stable sales and revenues. Revenues and the result across all products in 

the conventional energy business are likely to remain at the year-earlier level in 2012. The strategy of expanding 

through takeovers and cooperations within and outside the existing sales territory will be pursued, as before. 

Reliable guidance is only possible to a limited extent owing to considerable price fluctuations and the dependence 

of sales on weather conditions in particular. 

BayWa continued to chart its course of expansion in its renewable energies activities by combining organic growth 

and acquisitions in 2011 while forging ahead with its strategy of double diversification in respect of energy carriers 

and countries. With its presence today through its own companies in seven countries which operate in all the 

significant market segments of renewable energies, namely solar, wind and biogas, BayWa r.e is well positioned 

for the future. Beyond this, the company’s broad-based activities, ranging from trading across project development 

through to the sale and maintenance of turnkey plants which have successfully completed the ramping-up phase, 

also have a stabilising effect on the business model. Having focused on growth through acquisitions in the past three 

years, the company will now be concentrating on organic growth in 2012 and 2013. In the business with solar plants, 

significant reductions in feed-in tariffs can be expected in Germany in 2012 and 2013 due to the capacity installed in 

2011 which was much higher than planned. Italy and Spain will also curtail or even abolish subsidies in response to 

their strained budgets. The effect will be a notable decline in the sales volume of photovoltaic plants. BayWa intends 

to use these general conditions to raise its market share and even crowd out competitors. In this environment, the 

development of the US solar and wind market and the UK wind power market in particular will be well worthwhile 

for BayWa in the near future. The Group anticipates that, in its business with renewable energies concentrated 

under BayWa r.e, the downturn in revenues from the European photovoltaic market can be more than compensated 

through growth in the US and in the UK, as well as through new wind power projects. BayWa r.e envisages revenues 

of around €1 billion and an EBIT margin of around 5% in the medium term. It intends to make further progress 

towards this goal in 2012 and 2013. 

To summarise, further growth in the revenues and profit of the Energy Segment is anticipated in 2012 and 2013. 


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82 

Contribution to value added 

anticipated 

Leveraging existing potential 

Even better results if framework 

conditions remain favourable 


Outlook for the Building Materials Segment 

As from 1 January 2012, the Building Materials Segment will exclusively comprise building materials retail 

activities. The segment’s revenues and profit contribution will therefore decline in 2012 as it will no longer have the 

contribution from the DIY and garden centre business. Only moderate growth rates are anticipated for the building 

materials business in 2012 and 2013 owing to the slowdown in the German and Austrian construction sectors. In 

terms of profit, the building materials retail business, which was again able to earn its cost of capital again for the first 

time in a while, is expected to generate positive value added. “Project 2015” has laid the foundations for achieving 

this goal. The project focuses on setting in place a new structure for the various centres with sixteen instead of the 

twelve centres to date. This will form the platform for developing a logistics and procurement organisation geared 

to the new organisation structure of the centres and for combining distribution locations to avoid unnecessary 

movements between warehouses through optimising and centralising control and management of warehousing 

processes. Other key components entail improving procurement processes, for instance, the reduction of overheads 

and the increased use of house brands to raise revenues and widen margins. These measures should contribute 

to lifting profits as early as 2012 although they will be offset by the cost of implementation. In the years thereafter, 

profit should improve with the gradual non-recurrence of implementation costs. 

Outlook for the BayWa Group 

In the wake of numerous acquisitions in previous years, the financial year 2012 will be one of consolidation for 

BayWa, with the integration of the many companies into units which operate efficiently in the market and leverage 

existing potential. Based on the developments anticipated in the business units, the BayWa Group’s revenues 

will at minimum match the high year-earlier level in 2012, albeit without revenues generated by the DIY and 

garden centres. Revenues and profits from agri-trade and agricultural equipment combined under the Agriculture 

Segment will be somewhat lower compared with 2011. This decline will, however, be more than compensated 

by the expansion in the activities of the fruit business. BayWa anticipates stable revenue and profit contributions 

from its Energy Segment. The downturn in conventional energy trading will be offset by growth in the renewable 

energies business. Revenues and profit are likely to improve moderately in the building materials retail business. 

The BayWa Group will therefore stabilise the good results from its operating activities achieved overall in 2011 and, 

given favourable general economic conditions, raise them further. In 2012, the ongoing investments of BayWa in 

maintaining and modernising its locations will remain at a level that is virtually unchanged from 2010 and 2011. 

These investments are customarily financed for the most part from the operating cash flow. Beyond this, there are 

funds available for medium- and long-term financing from the bonded loans with terms of five and seven years. 

The development of the Group beyond the year 2012 will be borne in the main through the ongoing strengthening 

of its operating activities. BayWa will carefully consider opportunities for internal and external growth in its core 

segments of Agriculture, Energy and Building Materials in the future as well and, if its assessment is positive, take 

advantage by drawing on the sound financing structure of the Group. Activities in 2012 and 2013 will, however, be 

focused on organic growth. 

The volatilities and risks described in the individual business segments may cause results to diverge from today’s 

planning. BayWa nonetheless considers itself well positioned in its operations. Against this backdrop, BayWa is 

confident that it will continue to develop well through ongoing growth in its core businesses and that it will be 

successful in raising operating profit again in the year 2013. 


Consolidated 

Financial 

Statements 

We are committed to responsible 

company management. 

(Taken from BayWa AG’s Corporate Guidelines) 

Section 

Page 

85 Affirmation by the Legally Authorised Representatives 

86 Consolidated Balance Sheet as at 31 December 2011 

88 Consolidated Income Statement for 2011 

89 Consolidated Statement of Comprehensive 

Income – Transition 

90 Consolidated Cash Flow Statement for 2011 

92 Consolidated Statement of Changes in Equity 

94 Notes to the Consolidated Financial Statements 

191 Group Holdings of BayWa AG (Appendix to the Notes 

to the Consolidated Financial Statements) 

197 Auditor’s Report 

4

84 4 • Consolidated Financial Statements • 

In all three segments 


17,000 

The BayWa Group’s workforce came 

to around 17,000 employees as per 

31 December 2011. 

The BayWa Group developed extremely well in the financial 

year 2011. In all three of its business segments of Agriculture, 

Energy and Building Materials, BayWa outperformed the 

year-earlier level in terms of both revenues and EBIT. 

30% 

and more 

BayWa is striving to achieve a 

medium- and long-term equity 

ratio of at least 30%. The equity 

base is a very sound foundation 

for a trading company and a stable 

platform for business to develop. 

+ 17.5% 

EBIT of €151.4 million is 17.5% higher 

than in 2010. 


Total volume invested in acquisitions in 2011.

4 • Consolidated Financial Statements • Affirmation by the Legally Authorised Representatives 

Affirmation by the Legally Authorised 

Representatives 

We hereby affirm that, to the best of our knowledge and in accordance with the generally accepted accounting 

principles, the consolidated financial statements give a true and fair view of the net assets, financial position and the 

result of operations of the Group, and that the Management Report on the Group presents a true and fair description 

of the development of the Group’s business, including its performance, and of the material risks and opportunities 

inherent in the prospective development of the Group. 

Munich, 1 March 2012 

BayWa Aktiengesellschaft 



Klaus Buchleitner 

Andreas Helber 

Dr. Josef Krapf 

Roland Schuler 


85

86 4 • Consolidated Financial Statements • Consolidated Balance Sheet as at 31 December 2011 

Consolidated Balance Sheet 

as at 31 December 2011 

Assets 

In € million Note 2011 2010 

Non-current assets 

Intangible assets (C.1.) 119.038 64.134 

Property, plant and equipment (C.2.) 1,109.851 917.019 

Participating interests recognised at equity (C.3.) 16.533 45.733 

Other financial assets (C.3.) 210.595 212.607 

Investment property (C.4.) 63.587 71.639 

Tax assets (C.5.) 6.658 7.564 

Other receivables and other assets (C.6.) 18.665 16.810 

Deferred tax assets (C.7.) 69.508 91.844 

Current assets 

1,614.435 1,427.350 

Securities (C.3.) 1.811 1.841 

Inventories (C.8.) 1,165.428 1,062.329 

Tax assets (C.5.) 43.059 21.478 

Other receivables and other assets (C.6.) 742.512 662.941 

Cash and cash equivalents (C.9.) 86.997 28.208 

2,039.807 1,776.797 

Non-current assets held for sale/disposal groups (C.10.) 258.800 49.104 

Total assets 3,913.042 3,253.251 


Shareholders’ equity and liabilities 

4 • Consolidated Financial Statements • Consolidated Balance Sheet as at 31 December 2011 


Equity (C.11.) 

Subscribed capital 87.871 87.562 

Capital reserve 91.536 88.441 

Revenue reserves 580.924 577.113 

Other reserves 105.277 85.313 

Equity net of minority interest 865.608 838.429 

Minority interest 202.421 167.095 


87 

1,068.029 1,005.524 

Non-current liabilities 

Pension provisions (C.12.) 387.772 397.492 

Other non-current provisions (C.13.) 75.600 64.372 

Financial liabilities (C.14.) 565.126 269.077 

Finance lease obligations (C.15.) 5.289 2.157 

Trade payables and liabilities from inter-group business relationships (C.16.) 0.012 45.262 

Other liabilities (C.17.) 13.090 2.284 

Deferred tax liabilities (C.18.) 100.710 100.391 

Current liabilities 

1,147.599 881.035 

Pension provisions (C.12.) 28.475 27.534 

Other current provisions (C.13.) 116.480 106.287 

Financial liabilities (C.14.) 582.526 537.675 

Finance lease obligations (C.15.) 1.750 0.558 

Trade payables and liabilities from inter-group business relationships (C.16.) 750.148 549.495 

Tax liabilities 56.651 39.404 

Other liabilities (C.17.) 79.142 72.732 

1,615.172 1,333.685 

Liabilities from non-current assets held for sale (C.19.) 82.242 33.007 

Total shareholders’ equity and liabilities 3,913.042 3,253.251

88 4 • Consolidated Financial Statements • Consolidated Income Statement for 2011 

Consolidated Income Statement for 2011 

Continued operations 


Revenues (D.1.) 9,585.677 7,902.988 

Changes in inventories 88.844 75.598 

Own work capitalised 2.324 1.370 

Other operating income (D.2.) 129.985 127.205 

Cost of materials (D.3.) – 8,503.124 – 6,937.024 

Gross profit 1,303.706 1,170.137 

Personnel expenses (D.4.) – 679.798 – 633.724 

Depreciation/amortisation – 102.173 – 99.326 

Other operating expenses (D.5.) – 382.383 – 328.250 

Operating result 139.352 108.837 

Income from participating interests recognised at equity (D.6.) 1.386 7.194 

Other income from shareholdings (D.6.) 10.658 12.824 

Interest income (D.7.) 4.576 3.474 

Interest expense (D.7.) – 58.301 – 45.191 

Financial result – 41.681 – 21.699 

Earnings before tax 97.671 87.138 

Income tax (D.8.) – 27.872 – 20.296 

Net income 69.799 66.842 

of which: profit share of minority interest (D.9.) 18.532 16.404 

of which: profit share of the shareholders of the parent company 51.267 50.438 

EBIT 151.396 128.855 

EBITDA 253.569 228.181 

Basic earnings per share (in euros) (D.10.) 1.50 1.48 

Diluted earnings per share (in euros) (D.10.) 1.50 1.48 


4 • Consolidated Financial Statements • Consolidated Statement of Comprehensive Income – Transition 

Consolidated Statement of Comprehensive 

Income – Transition 

In € million 2011 2010 

Net income 69.799 66.842 

Changes in “available for sale” assets carried at fair value 

Net gain/loss from revaluation of financial assets in the “available for sale” 

category during the reporting period 

Reclassifications due to disposal of financial assets in the “available for sale” 

category during the reporting period 

Difference from currency translation – 1.946 0.731 

Income and expenses recorded directly in equity – 7.135 – 0.653 

of which: due to minority interest – 1.096 0.073 

of which: due to shareholders of the parent company – 6.039 – 0.726 

Total comprehensive income 62.664 66.189 

of which: due to minority interest 17.436 16.477 

of which: due to shareholders of the parent company 45.228 49.712 


– 5.189 

— 

89 

– 1.384 

—

90 4 • Consolidated Financial Statements • Consolidated Cash Flow Statement for 2011 

Consolidated Cash Flow Statement for 2011 

(Note E.1.) 


Net income 69.799 66.842 

Write-downs/write-ups of non-current assets 

Intangible assets 12.807 9.080 

Property, plant and equipment 85.797 84.846 

Other financial assets 1.168 0.189 

Investment property 2.120 4.743 

Other non-cash related expenses/income 

Changes in deferred taxes – 4.272 – 4.273 

Equity result minus dividend and capital repayment 6.530 – 7.194 

Expenses relating to share-based payment through profit and loss 1.361 1.387 

Other – 8.147 – 2.216 

Increase/decrease in non-current provisions – 6.901 – 1.642 

Cash-effective expenses/income from special items 

Gain/loss from the disposal of financial assets – 0.203 – 2.593 


160.059 149.169 

Increase/decrease in current and medium-term provisions 7.657 7.866 

Gain/loss from asset disposals – 8.954 – 29.019 

Increase/decrease in inventories, trade receivables and other assets not allocable to investing or financing activities – 291.225 – 265.686 

Increase/decrease in trade payables and other liabilities not allocable to investing or financing activities 105.010 128.295 

Cash flow from operating activities – 27.453 – 9.375 

Outgoing payments for company acquisitions (Note B.1.) – 63.632 – 11.708 

Incoming payments from the divestiture of companies (subsidiaries; Note B.1.) 8.537 16.550 

Incoming payments from the disposal of intangible assets, property, plant and equipment and investment property 36.513 28.694 

Outgoing payments for investments in intangible assets, property, plant and equipment and investment property – 205.556 – 131.583 

Incoming payments from the disposal of other financial assets 18.916 11.558 

Outgoing payments for investments in other financial assets – 17.426 – 27.044 

Cash flow from investing activities – 222.648 – 113.533 

Incoming payments from equity contributions 2.043 2.082 

Dividend payments – 19.883 – 18.102 

Incoming/outgoing payments from borrowing/redemption of (financing) loans 291.709 147.608 

Cash flow from financing activities 273.869 131.588 

Cash-effective changes in cash and cash equivalents 23.768 8.680 

Cash and cash equivalents at the start of the period 28.208 19.723 

Incoming/outgoing cash and cash equivalents owing to changes in the group of consolidated companies 35.021 – 0.195 

Cash and cash equivalents at the end of the period 86.997 28.208

4 • Consolidated Financial Statements • Consolidated Cash Flow Statement for 2011 


Additional information 

The cash flow from operating activities comprises the following cash flows: 

Income tax payments – 32.937 – 15.085 

Interest received 4.056 3.526 

Interest paid – 32.782 – 20.347 

Dividend received and other income assumed 12.564 17.026 

Interest paid is fully allocable to the cash flow from operating activities, both in the reporting year and in the previous year. 

Income tax payments are accounted for as follows: €2.526 million (2010: €0.000 million) by the cash flow from investing 

activity and €41.170 million (2010: €15.085 million) by the cash flow from operating activities. Dividend received and other 

income assumed is attributable to investing activities, as in the previous year. Of the interest received, €0.972 million (2010: 

€0.347 million) is attributable to investing activities and €3.084 million (2010: €3.179 million) to operating activities. 

Outgoing payments for company acquisitions included in the cash flow from investing activities are as follows: 

Purchase price of company acquisitions – 68.252 – 15.541 

Purchase prices paid (including contingent purchase price components from company acquisitions in previous years) – 63.632 – 15.351 

Cash and cash equivalents assumed from company acquisitions 33.912 3.643 


91

92 4 • Consolidated Financial Statements • Consolidated Statement of Changes in Equity 

Consolidated Statement of Changes in Equity 

Note (C.11.) 

In € million Subscribed capital Capital reserve 


Revenue reserves/ 

revaluation 

4 • Consolidated Financial Statements • Consolidated Statement of Changes in Equity 

Other revenue 

reserves Other reserves 


Equity net of 

minority interest Minority interest Equity 

As per 01/01/2010 87.258 85.276 1.629 579.027 49.698 802.888 154.592 957.480 

Differences from changes in the group of consolidated companies — — 0.057 1.322 – 5.431 – 4.052 0.540 – 3.512 

Capital increase against cash contribution/share-based payment 0.304 3.165 — — — 3.469 — 3.469 

Changes in “available for sale” assets carried at fair value — — – 1.328 — — – 1.328 – 0.056 – 1.384 

Dividend distribution — — — — – 13.588 – 13.588 – 4.514 – 18.102 

Difference from currency translation — — — — 0.602 0.602 0.129 0.731 

Transfer to revenue reserve — — — – 3.594 3.594 — — — 

Net income — — — — 50.438 50.438 16.404 66.842 

As per 31/12/2010 // 01/01/2011 87.562 88.441 0.358 576.755 85.313 838.429 167.095 1,005.524 

Differences from changes in the group of consolidated companies — — — – 2.471 – 1.939 – 4.410 20.730 16.320 

Capital increase against cash contribution/share-based payment 0.309 3.095 — — — 3.404 — 3.404 

Changes in “available for sale” assets carried at fair value — — – 5.110 — — – 5.110 – 0.079 – 5.189 

Dividend distribution — — — — – 17.043 – 17.043 – 2.840 – 19.883 

Difference from currency translation — — — — – 0.929 – 0.929 – 1.017 – 1.946 

Transfer to/withdrawal from revenue reserves — — — 11.392 – 11.392 — — — 

Net income — — — — 51.267 51.267 18.532 69.799 

As per 31/12/2011 87.871 91.536 – 4.752 585.676 105.277 865.608 202.421 1,068.029 

93

94 4 • Consolidated Financial Statements • Notes to the Consolidated Financial Statements 

Notes to the Consolidated Financial Statements 

as at 31 December 2011 

Drawn up in accordance with the International Financial Reporting Standards (IFRS)/International Accounting Standards (IAS) adopted within the 

European Union, as well as in accordance with the additional information required under Section 315a para. 1 of the German Commercial Code 

(HGB) 


4 • Consolidated Financial Statements • Notes to the Consolidated Financial Statements 

(A.) Background to the BayWa Consolidated Financial Statements 

(A.1.) General information, accounting and valuation methods 

BayWa AG has its principal place of business in 81925 Munich, Arabellastraße 4, Germany. The BayWa Group is a group of trading and services 

companies with core activities in the following lines of business: Agricultural Trade, Fruit, Agricultural Equipment, Energy, Renewable Energies, 

Building Materials and DIY & Garden Centres. The Agricultural Trade Business Unit comprises trading in agricultural produce and operating resources. 

The Fruit Business Unit combines all activities of the Group in the business of fruit trading. The Agricultural Equipment Business Unit offers a fullline 

range of agricultural equipment and services. The Energy Business Unit has an extensive network which ensures the supply of heating oil, fuels, 

lubricants and wood pellets to commercial and private customers. In the Renewable Energies business line, the Group offers customers services 

geared to project management for wind power, biogas facilities and solar power plants, on the one hand, and operates its own wind and biogas 

plants to produce electricity, on the other. The range of products and services under Renewable Energies is rounded off by the sale of solar panels. 

The Building Materials Business Unit comprises activities involved in selling building materials. The DIY & Garden Centres Business Unit serve the 

customer in the “Do-It-Yourself” market. 

In the financial year 2011, BayWa AG’s Board of Management made the decision, with the approval of the Supervisory Board, to incorporate part of 

the DIY and garden centres of BayWa AG into a joint venture with Semer Beteiligungsgesellschaft GmbH, Salzburg, Austria, with effect from 1 January 

2012. Semer Beteiligungsgesellschaft mbH operates DIY and garden centres in Germany and Austria through Hellweg Die Profi Baumärkte GmbH & 

Co. KG, Dortmund. As contractually agreed, the inventories and selected property, plant and equipment and directly allocable liabilities of 56 DIY and 

garden centres belonging to BayWa AG will be transferred to Munich-based BayWa Bau- & Gartenmärkte GmbH & Co. KG, a company established 

for this purpose, with effect from 1 January 2012. Following the transfer, Semer Beteiligungsgesellschaft mbH will acquire 50% of the limited partner 

interest in BayWa Bau- & Gartenmärkte GmbH & Co. KG in the first stage of the transaction. BayWa AG will initially retain the remaining 50% which 

will be sold in stages to Semer Beteiligungsgesellschaft mbH over a period up until 31 December 2021. All the real estate assets of the DIY and 

garden centres being transferred will not be assigned to the new company as part of the transaction. They will remain in the ownership of BayWa AG 

and let in future to BayWa Bau- & Gartenmärkte GmbH & Co. KG. Moreover, the DIY and garden centres which are closely interlinked with locations 

of other business units will remain the property of BayWa AG. Similarly, the BayWa Group’s Austrian DIY and garden centres are also not part of 

the transaction. BayWa Bau- & Gartenmärkte GmbH & Co. KG will be included in the BayWa Group under the equity method. Owing to the spin-off 

decision effective 1 January 2012, the assets and liabilities of the 56 DIY and garden centres being transferred will be reported in the consolidated 

financial statements as at 31 December 2011 as a disposal group within the meaning of IFRS 5. 

The Consolidated Financial Statements as at 31 December 2011 were drawn up in compliance with the International Financial Reporting 

Standards (IFRS) as applicable within the European Union. The standards of the International Accounting Standards Board (IASB), London, and the 

interpretations of the International Financial Reporting Interpretations Committee (IFRIC) valid on the reporting date were fully taken account of. The 

consolidated financial statements therefore give a true and fair view of the assets, financial position and result of operations of the BayWa Group. 

Moreover, the consolidated financial statements accord with the supplementary provision set out under Section 315a para. 1 of the German 

Commercial Code (HGB). 

The financial year of the BayWa Group covers the period from 1 January to 31 December. The financial statements of BayWa AG and its subsidiaries 

are prepared in accordance with the balance sheet date of the consolidated financial statements. The financial statements of Deutsche Raiffeisen- 

Warenzentrale GmbH and Raiffeisen Beteiligungs GmbH constitute an exception as these companies are accounted for using the equity method. Both 

companies have a different reporting date, which is 30 June. The interim financial statements of both companies as at 31 December 2011 form the 

basis for consolidation. 

The accounting implemented within the group of BayWa AG is carried out in accordance with the accounting and valuation principles uniformly 

applied by the whole Group; they are described under Notes C. and D. in the explanations on the balance sheet and the income statement. 

Individual items have been disclosed separately in the balance sheet and in the income statement to enhance transparency. They are broken down 

and explained in the Notes to the Consolidated Financial Statements. The consolidated financial statements have been prepared in euros. Unless 

otherwise indicated, amounts are shown in millions of euros (€ million; rounded up to 3 decimal points). 


95


(A.2.) Estimates and assumptions by Management 

The preparation of the consolidated financial statements necessitates that, to a certain extent, assumptions are made and estimates used which have 

an impact on the amount and disclosure of assets and liabilities capitalised, the income and expenses and the contingent liabilities. Estimates are 

necessary, particularly in respect of the measurement of property, plant and equipment and intangible assets, as well as inventories, in connection with 

purchase price allocation, the recognition and measurement of deferred tax assets, the recognition and measurement of pension provisions and other 

reserves, as well as the carrying out of impairment tests in accordance with IAS 36. 

In the case of pension provisions, the discount factor, along with wage and salary and pension trends, are important parameters for estimates. An 

increase or decrease in the discount factor affects the net present value of the obligations arising from pension plans. 

Impairment tests on goodwill are based on future-oriented assumptions. From today’s standpoint, changes in these assumptions would not result in 

the book values of the cash generating unit (CGU) exceeding their recoverable amount, thereby triggering impairment. The underlying assumptions 

are influenced primarily by the market situation of the CGU. 

Deferred tax assets on loss carryforwards are recognised provided that future tax advantages are likely to be realised within the next three years. 

The actual taxable profits in future periods, and thus the actual usability of deferred tax assets, may diverge from the estimate at the time when the 

deferred tax is capitalised. 

In respect of property, plant and equipment, assumptions were made relating to the uniform, groupwide establishing of useful economic lives. 

Divergences from the actual economic life are therefore possible but are estimated to be fairly low. 

Estimates have been made in respect of inventories, especially in the context of write-downs on the net realisable value. Estimates of the net realisable 

value are based on the substantive information available at the time when the likely recoverable amounts of inventories were estimated. These 

estimates take account of changes in prices and costs which are directly associated with events after the reporting period, in as much as these events 

serve to elucidate the conditions already prevailing by the end of the reporting period. 

The measurement of the recoverability of receivables is also subject to assumptions which are based in particular on empirical values on recoverability. 

Rental expenses of “investment property” are also subject to estimates based on empirical values. 

All assumptions and estimates are based on the conditions prevailing and judgements made on the reporting date. In addition, consideration has been 

given to the economic development and the business environment of the BayWa Group. If, in future business periods, framework conditions should 

develop otherwise there may be differences between actual and estimated amounts. In such cases, the assumptions and, if necessary, the book value 

of the assets and liabilities affected will be adjusted on subsequent reporting dates. At the time when the consolidated financial statements were 

prepared a material change in the underlying assumptions and estimates was not anticipated. 

(A.3.) Impact of new accounting standards 

Accounting standards applicable for the first time in the financial year 2011 

In the financial year 2011, the following standards and interpretations were applicable for the first time. These new standards had very little or no 

influence on the presentation of the net assets, financial position and result of operations or on earnings per share. 

An amendment to IAS 32 (Financial Instruments: Presentation) was issued in October 2009. This amendment requires that certain subscription rights, 

as well as options and warrants denominated in a currency other than the functional currency of the issuer to whose equity instruments these rights 

are attached, must be presented under equity. These rights were formerly reported as liabilities. The amendment is only applicable to subscription 

rights which pertain to a fixed number of instruments involved and fixed foreign currency amounts and only when the respective rights are granted 

pro-rata to all previous holders of equity paper in the same class. 



In November 2009, the IASB published the revised standard IAS 24 (Related Party Disclosures). The amendment simplifies the reporting duties of 

companies in which the government holds an interest. Certain related party relationships arising from the government holding an interest in private 

companies are exempted from a number of reporting duties specified under the amended standard pursuant to IAS 24. Furthermore, the definition of 

related parties was subject to a thorough revision. 

In addition, IFRIC19 (Extinguishing Financial Liabilities with Equity Instruments) was issued in November 2009. The interpretation must be applied if a 

borrower fully or partly repays a financial liability by issuing equity instruments to the lender. 

Moreover, an amendment to IFRIC 14 (IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction), an 

interpretation of IAS 19 (Employee Benefits), was released in November 2009. The amendment is relevant if a company that must fulfil minimum 

funding requirements in connection with its pension plans makes advance contributions to these plans. The amendment permits the company to 

report the benefit from such contributions as an asset. 

In May 2010, the IASB released the third “Improvements to IFRS” collection of standards as part of the Annual Improvement Project. The amendments 

define precise standards for the recognition, measurement and disclosure of transactions, standardise terms, and are to be generally interpreted as 

editorial improvement of existing standards. 

Standards, interpretations and amendments which have been published but not yet applied 

The IASB and IFRS Interpretations Committee have issued the following standards, amendments of standards and interpretations that are not yet 

mandatorily applicable. The application of these IFRSs and interpretations is contingent on their having been adopted by the EU through an IFRS 

endorsement process. These accounting standards were not applied at an earlier date within the BayWa Group. 

The IASB published IFRS 9 (Financial Instruments), with rules on the classification and measurement of financial assets, in November 2009 and rules 

on the classification and measurement of financial liabilities in October 2010. The release of these standards marks the completion of the first part 

of a three-phase project on the full revision of accounting for financial instruments. IFRS 9 defines two instead of four measurement categories for 

asset-side financial instruments. This categorisation is based, on the one hand, on the company’s business model and, on the other, on the contractual 

cash flows of the respective financial assets. In respect of structured projects with embedded derivatives, the standard provides for an obligation to 

establish whether derivatives must be separated from the host contract, and any separation reported now only applies to non-financial host contracts. 

Structured products with the financial host contracts must be classified in their entirety and measured. The mandatory initial application of IFRS 9 

was postponed through an amendment to the “Mandatory Effective Date of IFRS 9”, passed in December 2011, to annual periods starting on or after 

1 January 2015. At the same time, the obligation to provide information on the initial application of IFRS 9 was amended under IFRS 7. Endorsement 

under European law is still pending. In view of the complexity of the scope addressed by IFRS 9, issuing a reliable, detailed statement on its impact is 

currently not possible. It is, however, assumed that these amendments will have no significant impact on the presentation of the net assets, financial 

position and result of operations of the BayWa Group. 

In October 2010, the IASB issued amendments to IFRS 7 (Financial Instruments: Disclosures). These amendments require additional information 

on transactions for the purpose of assigning assets as well as an insight into the potential impact of risks still inherent for the assigning company. 

Furthermore, additional information is required if there is a disproportionately large share of transfers at the end of the reporting period. Companies 

must apply the amendments for annual periods starting on or after 1 July 2011. The resulting reporting obligations are of secondary importance as 

regards the net assets, financial position and result of operations of the BayWa Group. 

In December 2010, the IASB published an amendment to IAS 12 (Income Taxes) under which there is a rebuttable presumption that the book value 

of an asset is recovered as a rule through disposal and not through the use of the asset. This definition is particularly relevant to the calculation of 

deferred taxes in countries where varying income tax rates apply to the gain from disposals and to rental income, for example. In this context, SIC 21 

(Income Taxes – Recovery of Revalued Non-Depreciable Assets) was integrated into IAS 12 (Income Taxes), provided that it does not pertain to 

investment property. The amended standard is applicable to annual periods beginning on or after 1 January 2012. Endorsement under European law 

by the European Union is still pending. From today’s standpoint, this amendment will have no impact on the presentation of the net assets, financial 

position and result of operations of the BayWa Group. 


97


In May 2011, the IASB released four new standards: IFRS 10 (Consolidated Financial Statements), IFRS 11 (Joint Arrangements), IFRS 12 (Disclosure 

of Interests in Other Entities) and IFRS 13 (Fair Value Measurement). In addition, amendments to two already existing standards, specifically IAS 27 

(Separate Financial Statements) and IAS 28 (Investments in Associates and Joint Ventures) were published. The standards are to be adopted 

mandatorily in annual periods beginning on or after 1 January 2013. Endorsement under European law is still pending. The impact of the amendments 

on the presentation of the net assets, financial position and result of operations is currently being reviewed. 

The objective of IFRS 10 (Consolidated Financial Statements) is to establish principles for the segregation of the group of consolidated companies 

irrespective of the type of shareholding. These principles are based on a control concept with extensive instructions on application which are 

integrated into the new standard. IFRS 10 therefore replaces the full scope of the corresponding regulations set out under IAS 27 (Consolidated and 

Separate Financial Statements) and SIC 12 (Consolidation – Special Purpose Entities). 

IFRS 11 (Joint Arrangements) regulates the accounting for joint arrangements under which joint control can be exercised with a third party. 

Accounting focuses on the rights and obligations of the arrangement, rather than its legal form which was formerly the case. Joint arrangements are 

differentiated by the categories of joint operations and joint ventures. In the case of joint operations, accounting must reflect the proportionate assets 

and liabilities corresponding to the rights and obligations of the individual party in future. The share in joint ventures must be disclosed using the 

equity method in future. The standards set out under IAS 31 (Interests in Joint Ventures) regulating accounting for shares in joint ventures and SIC 13 

(Tightly Controlled Entities – Non-Monetary Contributions by Venturers) have been replaced by IFRS 11. 

The new version of IAS 28 (Investments in Associates and Joint Ventures) revised by the IASB now regulates accounting for investment in joint 

ventures by applying the equity method, along with accounting for investments in associated companies. 

IFRS 12 (Disclosure of Interests in Other Entities) regulates disclosure requirements pertaining to interests in other entities, including subsidiaries, 

joint arrangements, associated companies and unconsolidated structured entities. The disclosure requirements are intended to facilitate the 

identification of the nature of the interests in the entities cited and the associated risks as well as the effects of those interests on the financial position, 

financial performance and cash flows. 

As a consequence of the amendments under IFRS 10 (Consolidated Financial Statements) and IFRS 12, the IASB published a revised version of 

IAS 27 (Separate Financial Statements) which exclusively addresses accounting for interests in subsidiaries, associated companies and joint ventures 

in IFRS separate financial statements. 

In IFRS 13 (Fair Value Measurement), the IASB defines fair value and sets out a framework for measuring fair value and disclosures about fair value 

measurements. The standard focuses on how fair value is to be measured rather than when, with fair value defined as a price that would be received 

on selling an asset or paid on transferring a liability. Upon initial application IFRS 13 is to be applied prospectively. 

In June 2011, the IASB published amendments to IAS 1 (Presentation of Financial Statements). These amendments require a separate presentation 

of the items not affecting net income stated in Other Comprehensive Income depending on whether they are to be reclassified subsequently to the 

income statement. Companies must apply the amendments for annual periods starting on or after 1 July 2012. Endorsement under European law is 

still pending. These amendments will have little impact on the presentation of the net assets, financial position and result of operations. 



In June 2011, the IASB also published amendments to IAS 19 (Employee Benefits). Accordingly, BayWa ceased to apply the corridor method 

currently in use which involves the subsequent recognition of actuarial gains and losses through profit and loss in later periods. In future, net pension 

obligations under defined benefit pension plans and changes in these obligations owing to actuarial gains and losses are to be reported in full directly 

without effect on net income. Moreover, the net interest expense from defined benefit pension plans is to be calculated on the basis of a net liability, 

specifically the balance of pension obligations and the fair value of plan assets. Accordingly, the interest rate applicable to the return anticipated on 

plan assets reported through profit and loss no longer needs to be estimated. Instead it must correspond to the discount rate applied to pension 

obligations. The method used to calculate this interest rate will remain unchanged. In the case of future plan changes, the adjusted past service cost 

must be immediately reported through profit and loss. Furthermore, the regulations on the recognition and measurement of termination benefits paid 

to employees have changed. The amendments are to be mandatorily applied to annual periods beginning on or after 1 January 2013. 

Endorsement under European law is still pending. Under the amendment, actuarial gains and losses, accounted for to date within the BayWa Group 

using the corridor method, must therefore be stated in equity without effect on income and the net pension obligation fully disclosed. Further effects 

of the amendment on the presentation of the net assets, financial position and result of operations are currently being reviewed. 

The IFRIC 20 interpretation (Stripping Costs in the Production Phase of a Surface Mine) was published in October 2011. IFRIC 20 defines the 

recognition, the initial and subsequent measurement of assets in connection with stripping costs in the production phase in surface mining necessary 

to gain access to mineral ore deposits. The interpretation enters into force for annual periods beginning on or after 1 January 2013. Endorsement 

under European law is still pending. This amendment will have no impact on the presentation of the net assets, financial position and the result of 

operations. 

In December 2011, the IASB published supplementary standards on “Offsetting Financial Assets and Financial Liabilities”, a companion to 

IAS 32 (Financial Instruments: Presentation) and “Disclosures – Offsetting Financial Assets and Financial Liabilities”, relating to IFRS 7 (Financial 

Instruments: Disclosures). The amendment under IAS 32 clarifies details in connection with the right of set-off at any time and same-date settlement 

criteria. The amendment to IFRS 7 requires a tabular presentation in future of the reconciliation of gross and net amounts and other rights of 

set-off that do not fulfil set-off criteria for accounting purposes. These amendments are mandatorily and retrospectively applicable to interim and 

annual periods from 1 January 2013 onwards (IFRS 7 amendment) and 1 January 2014 (IAS 32 clarifications). Endorsement under European law 

is still pending. The amendments will have no major impact on the presentation of the net assets, financial position and result of operations of the 

BayWa Group. 


99


(B.) Information on Consolidation 

(B.1.) Group of consolidated companies – fully consolidated companies pursuant to IAS 27 

Under the principles of full consolidation, all domestic and foreign subsidiaries in which BayWa holds, either directly or indirectly, a controlling interest 

(Control Concept) and where the subsidiaries are not of secondary importance have been included in the consolidated financial statements, alongside 

BayWa AG. 


Bayerische Futtersaatbau GmbH, Ismaning 72.7 

BOR s.r.o., Choceň, Czech Republic 92.8 

CLAAS Südostbayern GmbH, Töging 90.0 


Share in capital in % Comment 

CLAAS Nordostbayern GmbH & Co. KG, Weiden 90.0 Initial consolidation on 01/01/2011 

CLAAS Main-Donau GmbH & Co. KG, Vohburg 90.0 Initial consolidation on 01/01/2011 

CLAAS Württemberg GmbH, Langenau 80.0 Initial consolidation on 30/04/2011 

EUROGREEN GmbH, Betzdorf 100.0 

EUROGREEN Schweiz AG, Zuchwil, Switzerland 100.0 

EUROGREEN CZ s.r.o., Jiřetín pod Jedlovou, Czech Republic 100.0 

F. Url & Co. Gesellschaft m.b.H., Unterpremstätten, Austria 100.0 

Frucom Fruitimport GmbH, Hamburg 100.0 

Garant-Tiernahrung Gesellschaft m.b.H., Pöchlarn, Austria 100.0 

LTZ Chemnitz GmbH, Hartmannsdorf 90.0 Initial consolidation on 19/04/2011 

Raiffeisen Waren GmbH Nürnberger Land, Hersbruck 52.0 Initial consolidation on 01/01/2011 

Raiffeisen-Kraftfutterwerke Süd GmbH, Würzburg 85.0 

Raiffeisen-Agro d.o.o., Beograd, Serbia 100.0 

Sempol spol. s.r.o., Trnava, Slovakia 100.0 

TechnikCenter Grimma GmbH, Mutzschen 70.0 


AFS Franchise-Systeme GmbH, Vienna Austria 100.0 

Bauzentrum Westmünsterland GmbH & Co. KG, Ahaus 100.0 

BayWa Handels-Systeme-Service GmbH, Munich 100.0 

BayWa Vorarlberg HandelsGmbH, Lauterach, Austria 51.0 

bs Baufachhandel Brands & Schnitzler GmbH & Co. KG, Mönchengladbach 100.0 

IFS S.r.l., Bolzano, Italy 51.0 

Voss GmbH & Co. KG, Coesfeld 100.0 

ZES Zentrale Einkaufs-Service GmbH, Munich 100.0 


AWS Entsorgung GmbH Abfall & Wertstoff Service, Boppard 90.0 Initial consolidation on 07/10/2011 

Aufwind Nuevas Energias Sociedad Limitada, Barcelona, Spain 100.0 

Aufwind BB GmbH & Co. Zweiundzwanzigste Biogas KG (formerly: Aufwind Schmack 

Betriebs GmbH & Co. Zweiundzwanzigste Biogas KG), Regensburg 

BayWa r.e Espana S.L.U., Barcelona, Spain 100.0 Initial consolidation on 01/01/2011 

BayWa r.e GmbH, Munich 100.0 

BayWa r.e Mozart LLC, San Diego, USA 100.0 Initial consolidation on 15/12/2011 

BayWa r.e Service GmbH, Munich 100.0 Initial consolidation on 04/07/2011 

BayWa r.e USA LLC, Santa Fe, USA 100.0 Initial consolidation on 01/01/2011 

BayWa-Tankstellen-GmbH, Munich 100.0 

Diermeier Energie GmbH, Straubing 100.0 Initial consolidation on 01/01/2011 

Dulas MHH Ltd., Machynlleth Powys, Wales, UK 90.0 Initial consolidation on 03/06/2011 

ECOWIND Group 

ECOWIND Handels- & Wartungs-GmbH, Kilb, Austria 90.0 Initial consolidation on 23/08/2011 

ECOwind d.o.o., Zagreb, Croatia 100.0 Initial consolidation on 23/08/2011 

100.0


Eko-Energetyka Sp. z o.o., Rezesów, Poland 51.0 Initial consolidation on 23/08/2011 

Puterea Verde S.r.l., Sibiu, Romania 75.5 Initial consolidation on 23/08/2011 

Windpark Pongratzer Kogel GmbH, Kilb, Austria 100.0 Initial consolidation on 23/08/2011 

Wind Water Energy ood, Varna, Bulgaria 76.0 Initial consolidation on 23/08/2011 

Focused Energy LLC, Santa Fe, USA 80.0 Initial consolidation on 03/01/2011 

GENOL Gesellschaft m.b.H. & Co. KG, Vienna, Austria 71.0 

L & L Rotorservice GmbH, Basdahl 100.0 Initial consolidation on 13/12/2011 

L & L Vermögensverwaltungs GmbH, Basdahl 100.0 Initial consolidation on 13/12/2011 

MHH France S.A.S., Toulouse, France 90.0 

MHH Solartechnik GmbH, Tübingen 100.0 

Net Environment S.L.U., Barcelona, Spain 100.0 

r.e Bioenergie GmbH (formerly: Aufwind Neue Energien GmbH), Regensburg 100.0 

r.e Biomethan GmbH, Regensburg 100.0 

Schradenbiogas GmbH & Co. KG, Gröden 94.5 

TESSOL Kraftstoffe, Mineralöle und Tankanlagen GmbH, Stuttgart 100.0 

WAV Wärme Austria VertriebsgmbH, Vienna, Austria 89.0 Initial consolidation on 01/07/2011 

Wingenfeld Energie GmbH, Hünfeld 100.0 Initial consolidation on 01/01/2011 

WKN USA Group 

WKN USA, LLC, San Diego, USA 70.0 Initial consolidation on 26/08/2011 

WKN Montana II, LLC, San Diego, USA 100.0 Initial consolidation on 26/08/2011 

WKN Ravel, LLC, San Diego, USA 100.0 Initial consolidation on 26/08/2011 

WKN Vivaldi, LLC, San Diego, USA 100.0 Initial consolidation on 26/08/2011 

WKN Chopin, LLC, San Diego, USA 100.0 Initial consolidation on 26/08/2011 

WKN Wagner, LLC, San Diego, USA 100.0 Initial consolidation on 26/08/2011 

WKN Amadeus, LLC, San Diego, USA 100.0 Initial consolidation on 26/08/2011 

RENERCO Group 

RENERCO Renewable Energy Concepts AG, Munich 90.7 

RENERCO Beteiligungs GmbH, Grünwald 100.0 

RENERCO Energies SAS, Paris, France 100.0 

RENERCO Energy UK Ltd., London, UK 100.0 Initial consolidation on 22/02/2011 

RENERCO GEM 1 GmbH, Munich 100.0 Initial consolidation on 01/01/2011 

RENERCO GEM 2 GmbH, Munich 100.0 Initial consolidation on 01/01/2011 

GEM WIND FARM 1 Ltd., London, UK 100.0 Initial consolidation on 01/01/2011 



RENERCO Polska Sp. z o.o., Warsaw, Poland 100.0 Initial consolidation on 24/01/2011 

RENERCO Solar GmbH, Munich 100.0 Initial consolidation on 20/04/2011 

Les Eoliennes de Saint Fraigne SAS, Strasbourg, France 24.5 Minority holding with right to raise 

participating interest 

Livas 1 Energeiaki EPE, Kalamata, Greece 94.0 

Neuilly Saint Front Energies SAS, Bègles, France 70.0 

Parco Solare Smeraldo S.r.l., Brixen, Italy 68.0 Initial consolidation on 01/01/2011 

Parque Eólico La Carracha S.L., Zaragoza, Spain 73.1 Transitional consolidation on 08/09/2011 

Parque Eólico Plana de Jarreta S.L., Zaragoza, Spain 72.2 Transitional consolidation on 08/09/2011 

Renewable Energy Harvest Nine GmbH & Co. KG, Grünwald 100.0 Initial consolidation on 01/01/2011 

Umspannwerk Gürtelkopf GmbH & Co. KG, Munich 100.0 

Umspannwerk Klein Bünsdorf GmbH & Co. KG, Munich 100.0 

Windpark Everswinkel GmbH & Co. KG, Grünwald 25.0 Minority holding with right to raise 


Windpark Everswinkel II GmbH & Co. KG, Grünwald 100.0 


101 

Share in capital in % Comment


WP EWL Infrastruktur GmbH & Co. KG, Munich 100.0 

Windpark Kamionka GmbH, Grünwald 100.0 

FW Kamionka Sp. z o.o., Kamionka, Poland 100.0 


Share in capital in % Comment 

Windpark Namborn GmbH & Co. KG, Munich 25.0 Minority holding with right to raise 


Windpark Selmsdorf II GmbH & Co. KG, Grünwald 100.0 Initial consolidation on 01/01/2011 

WP SDF Infrastruktur GmbH & Co. KG, Grünwald 100.0 Initial consolidation on 01/01/2011 

Windpark Wegeleben GmbH & Co. KG, Munich 100.0 

Wind am Speckberg GmbH, Munich 100.0 

Other Activities Segment (including financial participations) 

Agroterra Warenhandel und Beteiligungen GmbH, Vienna, Austria 100.0 

BayWa Finanzbeteiligungs-GmbH, Munich 100.0 

DRWZ-Beteiligungsgesellschaft mbH, Munich 64.3 

Raiffeisen-Lagerhaus Investitionsholding GmbH, Vienna, Austria 100.0 

RI-Solution GmbH Gesellschaft für Retail-Informationssysteme, Services und Lösungen mbH, 

Munich (for short: RI-Solution) 

RWA International Holding GmbH, Vienna, Austria 100.0 

Unterstützungseinrichtung der BayWa AG in München GmbH, Munich 100.0 

Ybbstaler Fruit Austria GmbH, Kröllendorf, Austria 100.0 

Ybbstaler Fruit Polska Sp. z o.o., Chelm, Poland 99.9 

Cross-segment subsidiaries 

„UNSER LAGERHAUS“ WARENHANDELSGESELLSCHAFT m.b.H., Klagenfurt, Austria 

(for short: UNSER LAGERHAUS) (Segments: Agriculture, Energy, Building Materials) 

Raiffeisen-Agro Magyarország Kft., Székesfehérvár, Hungary (Segments: Agriculture, Energy) 100.0 

Raiffeisen-Lagerhaus GmbH, Bruck an der Leitha, Austria (Segments: Agriculture, Energy, 

Building Materials) 

RWA Raiffeisen Ware Austria Aktiengesellschaft, Vienna, Austria (for short: RWA AG) (Segments: 

Agriculture, Energy, Building Materials, Other Activities) 

RWA SLOVAKIA spol. s.r.o., Bratislava, Slovakia (Segments: Agriculture, Energy) 100.0 

100.0 

51.1 

89.9 

50.0 

Majority voting interest 

In the financial year 2011, Raiffeisen Waren GmbH Nürnberger Land, Hersbruck, CLAAS Main-Donau GmbH & Co. KG, Vohburg, CLAAS 

Nordostbayern GmbH & Co. KG, Weiden, Diermeier Energie GmbH, Straubing, and Wingenfeld Energie GmbH, Hünfeld, all companies established 

in the previous year and which became operational in the current financial year, were admitted to the group of consolidated companies. Moreover, 

BayWa r.e España S.L.U, Barcelona, Spain, founded in the financial year 2010, and BayWa r.e USA LLC, Santa Fe, USA, as well as Dulas MHH Ltd., 

Machynlleth Powys, Wales, UK, companies established in the financial year 2011, became part of the consolidated group. 

With effect from 1 January 2011, BayWa took over the agricultural trade business of Schnell & Söhne KG Agrarhandel, Schwabmünchen, by way of 

an asset deal. The cost of purchase of the assets transferred on 1 January 2011 came to €3.000 million. The agreed purchase prices break down as 

follows: 





The intangible assets purchased correspond to the customer base purchased. There was no goodwill from the acquisition.


BayWa AG took over the heating oil, diesel and Otto fuel, wood pellets and AdBlue business from Diermeier GmbH & Cie. Mineralöl KG, Straubing, 

and Hermann Diermeier KG, Straubing, through its subsidiary Diermeier Energie GmbH, Straubing, with effect from 1 January 2011. Furthermore, 

additional assets were purchased from Top Oil GmbH & Cie. Transport KG, Straubing, with effect from 31 March 2011. The provisional cost of 

purchase of the assets transferred comes to €5.522 million. 






The intangible assets purchased correspond to the customer base purchased. There was no goodwill from the acquisition. 

BayWa AG took over the lubricants business of Diermeier GmbH & Cie. Lubes KG, Straubing, through its subsidiary Diermeier Energie GmbH, 

Straubing, by way of an asset deal with effect from 1 November 2011. The cost of purchase of the assets transferred comes to €2.389 million. 







BayWa AG took over the heating oil, diesel and Otto fuel and AdBlue business from Wingenfeld Mineralöle GmbH & Co. KG, Hünfeld, through its 

subsidiary Wingenfeld Energie GmbH, Hünfeld, with effect from 1 March 2011. The cost of purchase of the assets transferred comes to €2.470 

million. 







BayWa AG took over the photovoltaic wholesale business from Dulas Ltd., Machynlleth Powys, Wales, UK, through its lower-tier subsidiary Dulas 

MHH Ltd., Machynlleth Powys, Wales, UK, by way of an asset deal effective 3 June 2011. The cost of purchase of the assets transferred comes to 



103







There was goodwill of €2.242 million from the transaction which is comprised under the intangible assets. 

The purchase price agreed and disbursed to date for the acquisition of the photovoltaic plant wholesale business came to €4.182 million. In addition, 

the purchase agreement on the acquisition of operations includes purchase price components the future payment of which is contingent on the 

EBITDA achieved by Dulas MHH Ltd., Machynlleth Powys, Wales, UK, in the financial years 2011 and 2012. The payments to be made in subsequent 

years owing to the contingent purchase price components are within a range of €0.000 up to a maximum of €2.242 million. In view of the positive 

performance anticipated for the company a purchase price totalling €6.424 million has been recognised, including contingent purchase price 

components. 

BayWa AG acquired the movable assets in the Dasing and Krumbach locations from Eder GmbH, Tuntenhausen, through its subsidiary CLAAS 

Württemberg GmbH, Langenau, with effect from 1 September 2011. The cost of purchase of the assets transferred comes to €0.137 million and is 

fully accounted for by the movable assets of the aforementioned locations. There was no goodwill from the acquisition. 

BayWa AG acquired the agricultural equipment workshop business from Raiffeisenbank Gefrees eG, Gefrees, through its subsidiary CLAAS Nordostbayern 

GmbH & Co. KG, Weiden, with effect from 1 November 2011. The cost of purchase due and payable to date for the assets transferred comes to 

€0.028 million. There was no goodwill from the acquisition. 

BayWa AG acquired the agricultural machinery business from Lutzenberger Grundstück UG (limited liability) & Co. KG, Grabenstätt/Erlstätt, 

through its subsidiary CLAAS Südostbayern GmbH, Töging, with effect from 1 March 2011. The cost of purchase of the assets transferred comes to 








BayWa AG acquired 80% of the shares in Focused Energy LLC, Santa Fe, USA, through its lower-tier subsidiary, BayWa r.e USA LLC, Santa Fe, USA, 

with effect from 3 January 2011. Under the control concept, BayWa r.e USA LLC has had a controlling influence over this company since 3 January 

2011, the date when the purchase price was paid. The initial consolidation of the company therefore took place on this date within the scope of full 

consolidation. As a premium supplier in the business of photovoltaic (PV) system integration, Focused Energy LLC supplies installers in the United 

States of America, in particular in the core markets of Arizona, California, Pennsylvania, New Mexico and Hawaii. The product range comprises 

premium PV panels, inverters and installation systems. This acquisition has enabled BayWa AG to enter the high-growth US market for photovoltaic 

plants. 



The purchase price agreed for the shares in the company, disbursed in January, came to €8.390 million. In addition, the purchase agreement on the 

acquisition of the shares in the company includes purchase price components the future payment of which is contingent on the EBITDA achieved by 

Focused Energy LLC in the financial years 2011 and 2012. The payments to be made in subsequent years owing to the contingent purchase price 

components are within a range of €0.000 up to a maximum of €13.224 million. In view of the positive performance anticipated for the company when 

it was acquired, a preliminary purchase price totalling €21.614 million has been recognised, including contingent purchase price components. 

The transaction costs incurred in connection with the acquisition of the company come to €0.845 million and are included in the income statement 

under other operating expenses. 

The net assets purchased in connection with the acquisition of Focused Energy LLC break down as follows: 

In € million Book value Fair value adjustments Fair value 

Intangible assets — 12.252 12.252 

Property, plant and equipment — — 

Financial assets — — 

Inventories 1.710 0.179 1.889 

Receivables 2.381 2.381 

Deferred tax assets — — 

Cash and cash equivalents 2.700 2.700 

Non-current liabilities — — 

Current liabilities 4.069 4.069 

Deferred tax liabilities — 4.960 4.960 

2.722 7.471 10.193 

Proportionate net assets 8.154 

Goodwill 13.460 

Total purchase price, including contingent purchase price components 21.614 

Portion in net assets attributable to non-controlling shares 2.039 

The portion in net assets of €2.039 million attributable to the non-controlling shares in Focused Energy LLC comprises the book values of the 

company’s assets and liabilities attributable to minority interest as well as the proportionate hidden reserves and encumbrances. The calculation of 

hidden reserves in the context of the purchase price allocation was based on discounted cash flow methods and future expectations of profits from 

the sale of goods. The cash flows, spread over an economic life of eight years, are based on a discount factor of 11.5%. 

If the purchase of the company had been concluded by the first day of the financial year, there would have been no impact on the consolidated 

revenues and the consolidated profit attributable to investors. Since 3 January 2011, the date of its initial inclusion in the group of consolidated 

companies, Focused Energy LLC has generated revenues of €44.372 million and a net income of €4.552 million. 

BayWa AG acquired 80% of the shares in CLAAS Württemberg GmbH, Langenau, with effect from 30 April 2011. Under the control concept, 

BayWa AG has had a controlling influence over this company since 30 April 2011, the date when the shares were transferred. Initial inclusion in the 

consolidated financial statements as part of full consolidation therefore took place with effect from this date. CLAAS Württemberg GmbH operates as 

an agricultural equipment trading company in Baden-Württemberg and sells the machinery of CLAAS and other well-known agricultural equipment 

manufacturers as well as offering additional services. 

The cost of purchase of the shares came to €2.572 million. This amount includes the contractually agreed purchase price components disbursed in 

April. 

The transaction costs incurred in connection with the acquisition of the company amount to €0.024 million. These costs are included in the income 

statement under other operating expenses. 


105


The net assets acquired in connection with the purchase of CLAAS Württemberg GmbH break down as follows: 


Intangible assets 0.010 1.416 1.426 



Inventories 21.258 0.487 21.745 








0.362 1.367 1.729 





The portion in net assets of €0.346 million attributable to the non-controlling shares in CLAAS Württemberg GmbH comprises the book values of the 


hidden reserves in the context of the purchase price allocation was based on discounted cash flow methods and future expectations of profits from the 

sale of goods. The cash flows, spread over an economic life of nine and ten years, are based on a discount factor of 10.9% and 11.0% respectively. 

If the purchase of the company had been concluded by the first day of the financial year, the share in consolidated revenues would have been 

€17.051 million higher and the consolidated profit attributable to investors €0.441 million lower. Since 30 April 2011, the date of its initial 

consolidation into the group of consolidated companies, CLAAS Württemberg GmbH has generated revenues of €45.752 million and a net income 

of €0.799 million. 

BayWa AG acquired 90% of the shares in LTZ Chemnitz GmbH, Hartmannsdorf, with effect from 1 January 2011. Under the control concept, 

BayWa AG has had a controlling influence over this company since 19 April 2011, the date when the purchase price was paid. The initial consolidation 

of the company therefore took place on this date within the scope of full consolidation. 


April. 


statement under other operating expenses.


The net assets acquired in connection with the purchase of LTZ Chemnitz GmbH break down as follows: 





Inventories 11.262 0.130 11.392 








107 

1.965 0.174 2.139 





The portion in net assets of €0.213 million attributable to the non-controlling shares in LTZ Chemnitz GmbH comprises the book values of the 


hidden reserves in the context of the purchase price allocation was based on discounted cash flow methods and future expectations of profits from 

the sale of goods. The cash flows, spread over an economic life of nine years, were based on a discount factor of 10.9%. 


€26.661 million higher and the consolidated profit attributable to investors €0.297 million higher. Since 19 April 2011, the date of its initial inclusion 

in the group of consolidated companies, LTZ Chemnitz GmbH has generated revenues of €22.487 million and net income of €0.235 million. 

BayWa AG acquired 89% of the shares in Austrian OMV Wärme VertriebsGmbH, Vienna, Austria, through its subsidiaries RWA Raiffeisen Ware Austria 

Aktiengesellschaft, Vienna, Austria, „UNSER LAGERHAUS“ WARENHANDELSGESELLSCHAFT m.b.H., Klagenfurt, Austria, and BayWa Vorarlberg 

HandelsGmbH, Lauterach, Austria, with effect from 1 July 2011. Under the control concept, the Group companies have had controlling influence over 

this company since 1 July 2011, the date when the anti-trust authority granted its approval. The initial consolidation of the company therefore took 

place on this date within the scope of full consolidation. The company has traded under the name of WAV Wärme Austria VertriebsgmbH, Vienna, 

Austria, since 26 August 2011. 


July. 




The net assets acquired in connection with the purchase of WAV Wärme Austria VertriebsgmbH break down as follows: 




Financial assets 0.527 0.527 

Inventories 1.723 1.723 

Receivables 32.291 – 0.129 32.162 

Deferred tax assets 0.276 0.276 


Non-current liabilities 2.244 – 0.012 2.232 




2.322 5.286 7.608 





Share of the shareholders of the parent company in goodwill 4.224 

The portion in net assets of €0.837 million attributable to the non-controlling shares in WAV Wärme Austria VertriebsgmbH comprises the book values 

of the company’s assets and liabilities attributable to minority interest as well as the proportionate hidden reserves and encumbrances. The calculation 

of hidden reserves as part of the purchase price allocation was carried out on the basis of discounted cash flow methods. The cash flows, spread over 

an economic life of 20 years, are based on a discount factor of 8.5%. 


€183.694 million higher and the consolidated profit attributable to investors €0.247 million higher. Since 1 July 2011, the date of its initial inclusion 

in the group of consolidated companies, WAV Wärme Austria VertriebsgmbH has generated revenues of €215.281 million and delivered a loss of 


BayWa AG acquired 40% of the shares in Parque Eólico La Carracha S.L., Zaragoza, Spain, through its lower-tier subsidiary RENERCO Renewable 

Energy Concepts AG, Munich, with effect from 8 September 2011. Together with the 33.1% stake already held by RENERCO Renewable Energy 

Concepts AG in the company, reported at equity up until the date of the subsequent acquisition, 73.1% of the shares are now owned by RENERCO 

Renewable Energy Concepts AG. Under the control concept, RENERCO Renewable Energy Concepts AG has had a controlling influence over this 

company since 8 September 2011, the date when the purchase price was paid for the additional acquisition of 40% of the shares. The initial consolidation 

of the company therefore took place on this date within the scope of full consolidation. 

The cost of purchase of the shares totalling 73.1% came to €22.988 million. These costs include the purchase price component of €10.778 million, 

contractually agreed and paid out in September for the additional 40% stake, as well as the shares amounting to €12.210 million, measured at fair 

value and recognised at equity, already held by RENERCO Renewable Energy Concepts AG. The fair value measurement of the 33.1% stake held in 

Parque Eólico La Carracha S.L. resulted in an accounting profit of €4.320 million. This profit is included in the income statement under other operating 

income. 

The transaction costs incurred in connection with the acquisition of the shares amount to €0.090 million. These costs are included in the income statement 

under other operating expenses.


The net assets acquired in connection with the purchase of Parque Eólico La Carracha S.L. break down as follows: 


Intangible assets — — 

Property, plant and equipment 28.080 44.280 72.360 


Inventories — — 




Non-current liabilities 29.927 29.927 




109 

0.525 30.996 31.521 


Negative goodwill – 0.054 

Total acquisition costs 22.988 


The negative goodwill of €0.054 million was recognised under other operating income through profit and loss. 

The portion in net assets of €8.479 million attributable to the non-controlling shares in Parque Eólico La Carracha S.L. comprises the book values of 

the company’s assets and liabilities attributable to minority interest as well as the proportionate hidden reserves and encumbrances. The calculation of 

hidden reserves as part of the purchase price allocation was carried out on the basis of discounted cash flow methods. The cash flows, spread over an 

economic life of 17 years, are based on a discount factor of 6.8%. 

If the purchase of the company had been concluded by the first day of the financial year, the share in consolidated sales would have been 

€6.683 million higher and the consolidated profit attributable to investors €1.225 million higher. Since 8 September 2011, the date of its initial 

inclusion in the group of consolidated companies, Parque Eólico La Carracha S.L. has generated revenues of €3.053 million and net income of 


BayWa AG acquired 40% of the shares in Parque Eólico Plana de Jarreta S.L., Zaragoza, Spain, through its lower-tier subsidiary RENERCO Renewable 

Energy Concepts AG, Munich, with effect from 8 September 2011. Together with a stake of 32.2% already held by RENERCO Renewable Energy 

Concepts AG, reported at equity up until the date of the subsequent acquisition, 72.2% of the shares have been owned by RENERCO Renewable 

Energy Concepts AG since the date of purchase. Under the control concept, RENERCO Renewable Energy Concepts AG has had a controlling 

influence over this company since 8 September 2011, the date when the purchase price was paid for the additional acquisition of 40% of the shares. 

The initial consolidation of the company therefore took place on this date within the scope of full consolidation. 

The cost of purchase of the shares totalling 72.2% came to €20.391 million. These costs include the purchase price component of €9.560 million, 

contractually agreed and paid out in September for the additional 40% stake, as well as the shares amounting to €10.831 million, measured at fair 

value and recognised at equity, already held by RENERCO Renewable Energy Concepts AG. The fair value measurement of 32.2% of the shares held 

to date in Parque Eólico Plana de Jarreta S.L. resulted in an accounting profit of €3.207 million. This profit is included in the income statement under 

other operating income. 

The transaction costs incurred in connection with the acquisition of the company come to €0.090 million. These costs are included in the income 



The net assets acquired in connection with the purchase of Parque Eólico Plana de Jarreta S.L. break down as follows: 


Intangible assets — — 



Inventories — — 








0.363 28.631 28.994 


Negative goodwill – 0.543 



The negative goodwill of €0.543 million was recognised under other operating income through profit and loss. 

The portion in net assets of €8.060 million attributable to the non-controlling shares in Parque Eólico Plana de Jarreta S.L. comprises the book values 

of the company’s assets and liabilities attributable to minority interest as well as the proportionate hidden reserves and encumbrances. The calculation 

of hidden reserves as part of the purchase price allocation was based on discounted cash flow methods. The cash flows, spread over an economic 

life of 17 years, are based on a discount factor of 6.8%. 


€6.443 million higher and the consolidated profit attributable to investors €1.043 million higher. Since 8 September 2011, the date of its initial 

inclusion in the group of consolidated companies, Parque Eólico Plana de Jarreta S.L. has generated revenues of €2.900 million and delivered a 

loss of €0.035 million. 

BayWa AG acquired 70% of the shares in WKN USA, LLC, San Diego, USA, as the holding company of a group of companies through its lower-tier 

subsidiary BayWa r.e USA LLC, Santa Fe, USA, on 26 August 2011. This acquisition serves to promote the expansion of BayWa AG’s international 

business while, at the same time, strengthening its activities in the field of renewable energies. The transaction marks the entry of the trading group 

into the US wind project business. BayWa r.e USA LLC has taken over a 70% stake in WKN USA, LLC, from Windkraft Nord USA, Inc., a subsidiary 

of WKN AG, Husum. WKN AG is an international company based in Germany and specialised in the development of wind power projects. Its 

shareholders include Siemens Project Ventures GmbH (SPV), a company of the Financial Services Division (SFS) of Siemens. 

WKN USA, LLC, San Diego, USA, has established itself as a high-profile project developer for wind farms and, among other facilities, has built the 

US’s largest wind park to date with a hub height of 105 meters on behalf of an Italian energy utility. BayWa has secured great potential for the realising 

of onshore wind projects in several US federal states through this new participation. The US turnkey developer of wind power projects has a project 

pipeline of around 1,000 megawatts,110 megawatts of which are ready to build. 

Under the control concept, there has been a controlling influence over this company since 26 August 2011, the date when approval was granted by 

the anti-trust authority. Inclusion in the consolidated financial statements as part of full consolidation was therefore carried out on this date. 

The cost of purchase of the shares totalling 70% came to €0.000 million. 

The transaction costs incurred in connection with the acquisition of the shares amount to €0.389 million. These costs are included in the income 



The net assets acquired in connection with the purchase of WKN USA, LLC, break down as follows: 











Deferred tax liabilities — — 


111 

— — 

Proportionate net assets — 

Goodwill — 

Total purchase price — 

Portion in net assets attributable to non-controlling shares — 

No hidden reserves were identified in the context of the transaction, as all the assets and liabilities of WKN USA, LLC had been purchased at fair value 

by way of an asset deal prior to the acquisition of the shares by BayWa r.e USA LLC. Goodwill of €0.232 million accruing from the intangible assets of 

WKN USA, LLC, was ascertained in connection with this asset deal. 

If the purchase of the company had been concluded by the first day of the financial year, there would have been no impact on the share of 

consolidated revenues or on the portion of consolidated profit attributable to the investors, as the founding of WKN USA, LLC, and the subsequent 

asset deal was carried out directly prior to the acquisition of the shares by BayWa r.e USA LLC. Since 26 August 2011, the date of its initial inclusion 

in the group of consolidated companies, WKN USA, LLC, and its subsidiaries, which are also included in the consolidated financial statements of 

BayWa AG, have generated revenues of €0.055 million and delivered a loss of €0.495 million. 

BayWa AG acquired 90% of the shares in ECOWIND Handels- & Wartungs-GmbH, Kilb, Austria, as the holding of a group of companies, through its 

subsidiary BayWa r.e GmbH with effect from 23 August 2011. This transaction strengthens BayWa AG’s activities in the field of renewable energies 

by extending its reach to Austria and Eastern Europe. ECOWIND Handels- & Wartungs-GmbH develops and builds a number of wind power projects 

with a peak output of around 400 megawatts in Austria, Bulgaria, Poland, Slovakia and Croatia. 

The company acquired is a strategically important addition to the activities of BayWa r.e GmbH and will enable the latter to tap the huge wind power 

potential in the offshore business in Eastern Europe. Experts anticipate that Eastern Europe’s wind power capacity will grow by more than one 

gigawatt peak power a year through to 2020. The capacity currently installed in Eastern Europe comes to approximately three gigawatts. 

Under the control concept, BayWa r.e GmbH has had a controlling influence over ECOWIND Handels- & Wartungs-GmbH since 23 August 2011, the 

date when the purchase price was paid. Inclusion in the consolidated financial statements as part of full consolidation was therefore carried out as of 

this date. 

The cost of purchase of the shares came to €4.050 million. These costs include the contractually agreed purchase price component (€3.645 million) 

paid out in August and a purchase price retention of €0.405 million. 




The net assets acquired in connection with the purchase of ECOWIND Handels- & Wartungs-GmbH break down as follows: 





Inventories 1.712 4.366 6.078 






Deferred tax liabilities 0.119 1.230 1.349 


– 0.134 3.136 3.002 





The portion in net assets of €0.300 million attributable to the non-controlling shares in ECOWIND Handels- & Wartungs GmbH comprises the book 

values of the company’s assets and liabilities as well as the hidden reserves and encumbrances attributable to minority shareholders. The calculation 

of hidden reserves in the context of the purchase price allocation was based on discounted cash flow methods. The future earnings anticipated from 

project management services were based on a discount factor of between 4.1% and 7.1%. 


€0.790 million higher and the consolidated profit attributable to investors €0.199 million lower. Since 23 August 2011, the date of its initial inclusion 

in the group of consolidated companies, ECOWIND Handels- & Wartungs-GmbH and its subsidiaries have generated revenues of €0.694 million 

and delivered a loss of €0.194 million. 

Under a purchase agreement dated 7 October 2011, BayWa AG acquired 90% of the shares in AWS Entsorgung GmbH Abfall & Wertstoff Service, 

Boppard, through its lower-tier subsidiary Schradenbiogas GmbH & Co. KG, Gröden, by way of a share deal. Under the control concept, BayWa AG 

has had controlling influence over this company since 7 October 2011, the date when the purchase price was paid. Inclusion in the consolidated 

financial statements as part of full consolidation was therefore carried out as of this date. AWS Entsorgung GmbH Abfall & Wertstoff Service acts as an 

agent in respect of recycling services, particularly in connection with food waste, waste grease, the contents of fat separators and waste for recycling 

and disposal, with the exception of hazardous waste. The company operates as a broker and does not itself have recycling capacities or facilities. 


October. 




The net assets acquired in connection with the acquisition of AWS Entsorgung GmbH Abfall & Wertstoff Service break down as follows: 













113 

0.414 0.274 0.688 





Share of the shareholders of the parent company in goodwill 0.507 

The portion in net assets of €0.069 million attributable to the non-controlling shares in AWS Entsorgung GmbH Abfall & Wertstoff Service comprises 

the book values of the company’s assets and liabilities attributable to minority interest as well as the proportionate hidden reserves and encumbrances. 

The calculation of hidden reserves as part of the purchase price allocation was based on discounted cash flow methods. The cash flows, spread over 

an economic life of ten years, are based on a discount factor of 9.2%. 


€2.242 million higher and the consolidated profit attributable to investors €0.084 million higher. Since 7 October 2011, the date of its initial inclusion 

in the group of consolidated companies, AWS Entsorgung GmbH Abfall & Wertstoff Service has generated revenues of €0.434 million and delivered 

a loss of €0.001 million. 

Under a purchase agreement dated 8 November 2011, BayWa AG acquired 100% of the shares in both L & L Rotorservice GmbH, Basdahl, and L & L 

Vermögensverwaltung GmbH, Basdahl, through its lower-tier subsidiary BayWa r.e Service GmbH by way of a share deal. Under the control concept, 

BayWa AG has had a controlling influence over this company since 13 December 2011, the date when the purchase price was paid. L & L Rotorservice 

GmbH is a service provider with pan-European operations in the wind energy business. The company focuses on the repair and maintenance of rotor 

blades on site and in the respective works and on the treatment and processing of carbon fibre composites. 

As the acquisition of the company took place shortly before the reporting date, a final purchase price allocation into the assets and liabilities of the 

companies acquired could no longer be carried out. The subsequent figures pertaining to the purchase price and location are therefore preliminary 

figures. 

The preliminary cost of purchase of the shares came to €1.269 million. These costs include, on the one hand, the contractually agreed, preliminary 

purchase price component (€0.869 million) paid out in December. On the other, the purchase agreement on the acquisition of the shares in the 

companies includes purchase price components contingent on the EBIT achieved by L & L Rotorservice GmbH in the financial years 2012 and 

2013. The payments to be made in subsequent years on the basis of the contingent purchase price components are within a range of €0.000 up to 

a maximum of €0.400 million. In view of the positive performance anticipated for the company when it was acquired, a preliminary purchase price 

totalling €1.269 million has been recognised, including contingent purchase price components. 




The net assets acquired in connection with the purchase of L & L Rotorservice GmbH and L & L Vermögensverwaltung GmbH break down as follows 

(preliminary figures): 











Deferred tax liabilities — — 

0.172 0.172 

Preliminary goodwill 1.097 



€4.944 million higher and the consolidated profit attributable to investors €0.245 million lower. Since 13 December 2011, the date of its initial 

inclusion in the group of consolidated companies, L & L Rotorservice GmbH has generated revenues of €0.210 million and delivered a loss of 


r.e Bioenergie GmbH, Regensburg, sold 100% of its shares in Aufwind Schmack Betriebs GmbH & Co. Neunzehnte Biogas KG, Regensburg, 

on 1 July 2011. The effect of this transaction on the consolidated financial statements is as follows: 

Consideration received 

In € million 01/07/2011 

Consideration received in the form of cash and cash equivalents for 100% of the shares 0.005 



Assets and liabilities derecognised owing to loss of control 



Intangible assets — 

Property, plant and equipment 4.469 

Financial assets — 

Deferred tax assets 0.058 

4.527 


Inventories 0.315 

Receivables and other assets 0.111 

Cash and cash equivalents 0.044 

0.470 



Non-current provisions — 

Financial liabilities — 

Trade payables and other liabilities — 

— 


Current provisions 0.019 


Trade payables and other liabilities 4.662 

4.681 

Net assets on the disposal date 0.316 

Disposal loss on derecognition of the Group company 


Consideration received for 100% of the shares 0.005 

Net assets relinquished – 0.316 

Inter-company profits eliminated through to disposal date 0.003 

Disposal loss – 0.308 

The disposal loss is disclosed under other operating expenses in the income statement. 


115


Outgoing net cash and cash equivalents through the disposal of the Group company 


Purchase price settled through cash and cash equivalents 0.005 

Less cash and cash equivalents paid out in connection with the disposal – 0.044 

r.e Bioenergie GmbH, Regensburg, sold 100% of its shares in Aufwind BB GmbH & Co. Achtzehnte Biogas KG (formerly: Aufwind Schmack Betriebs 

GmbH & Co. Achtzehnte Biogas KG), Regensburg, on 31 August 2011. The effect of this transaction on the consolidated financial statements is as 

follows: 










Deferred tax assets — 

11.615 





1.955 





— 





14.359 

Net assets on the disposal date – 0.789 


– 0.039


Disposal gain from the derecognition of the Group company 



Net assets relinquished 0.789 


Disposal gain 1.694 

The disposal gain is disclosed under other operating income in the income statement. 

Incoming net cash and cash equivalents through the disposal of the Group company 




r.e Bioenergie GmbH, Regensburg, sold 51.67% of its shares to Aufwind Schmack Elsö Biogáz Szolgáltató Kft., Békéscsaba, Hungary, on 

23 December 2011. The effect of this transaction on the consolidated financial statements is as follows: 



Consideration received in the form of cash and cash equivalents for 51.67% of the shares 0.050 


117 

—






Property, plant and equipment — 


Deferred tax assets 0.041 

0.041 





16.873 



Non-current provisions 



Deferred tax liabilities 0.032 

0.032 


Current provisions — 



17.657 




Consideration received for 51.67% of the shares 0.050 

Addition measured at equity for 48.33% of the shares 0.015 











r.e Bioenergie GmbH, Regensburg, sold 51.0% of its shares in Aufwind BB GmbH & Co. Zwanzigste Biogas KG (formerly: Aufwind Schmack Betriebs 

GmbH & Co. Zwanzigste Biogas KG), Regensburg on 31 December 2011. The effect of this transaction on the consolidated financial statements is as 

follows: 



Consideration received in the form of cash and cash equivalents for 51.0% of the shares 0.003 





Property, plant and equipment — 



— 





5.697 






— 





6.006 



119 

– 0.670





Addition measured at equity for 49% of the shares 0.002 









RENERCO Renewable Energy Concepts AG, Munich, sold 100% of its shares in Voyennes Energies SAS, Bègles, France, on 7 December 2011. 

The effect of this transaction on the consolidated financial statements is as follows: 





– 0.308









21.804 


Inventories — 



4.675 




Financial liabilities 19.803 


19.803 





3.267 

Net assets on the disposal date 3.409 




Net assets relinquished – 3.409 





121


Incoming net cash and cash equivalents through the disposal of the Group company 




Owing to their generally secondary importance, 43 domestic and 79 foreign subsidiaries were not included in the group of consolidated 

companies. The recognition of these companies in the group of consolidated companies was carried out at amortised cost. The aggregated 

annual results and aggregated equity (unconsolidated HB 1 values based on the individual financial statements) of these companies in the 

financial year 2011 are set out below: 

Unconsolidated affiliated companies In € million 


6.489 

Share in percent in 

relation to the sum total of all fully 

consolidated companies 

Net income 2.204 2.89 

Equity 27.676 2.03 

(B.2.) Associated companies pursuant to IAS 28 

The following 14 (2010: 14) associated companies over which the BayWa Group has a controlling influence, i.e. a proportion of voting rights of at least 

20% and a maximum of 50%, and which are not jointly held companies or companies of secondary importance, were recognised under the equity 

method. 


Aufwind BB GmbH & Co. Zwanzigste Biogas KG 

(formerly: Aufwind Schmack Betriebs GmbH & Co. Zwanzigste Biogas KG), Regensburg 

Share in capital in percent Comment 

49.0 Transitional consolidation on 31/12/2011 

Aufwind Schmack Első Biogáz Szolgáltató Kft., Békéscsaba, Hungary 48.3 Transitional consolidation on 23/12/2011 

CRE Project S.r.l., Matera, Italy 49.0 

Süddeutsche Geothermie-Projekte GmbH & Co. KG, Munich 50.0 

Süddeutsche Geothermie-Projekte Verwaltungs GmbH, Munich 50.0 

EEV Beteiligungs GmbH, Grünwald 49.0 

Heizkraftwerke-Pool Verwaltungs-GmbH, Munich 33.3 

Heizkraftwerk Cottbus Verwaltungs GmbH, Munich 33.3 

EAV Energietechnische Anlagen Verwaltungs-GmbH, Staßfurt 49.0 

BVT Technische Anlagen GmbH & Co. Blockheizkraftwerke KG, Munich 34.7 

Other Activities Segment (including financial participations) 

AHG Autohandelsgesellschaft mbH, Horb am Neckar 49.0 

Deutsche Raiffeisen-Warenzentrale GmbH, Frankfurt am Main 37.8 

Raiffeisen Beteiligungs GmbH, Frankfurt am Main 47.4 

Frisch & Frost Nahrungsmittel-Gesellschaft m.b.H., Hollabrunn, Austria 25.0


Apart from holdings and loans granted, as listed below, there are no material business relations maintained with the companies cited above. 

Associated companies 

Loan status on 31/12/2011 

In € million Term Interest rate 

CRE Project S.r.l. 1.062 31/12/2011 0% 

Süddeutsche Geothermie Projekte GmbH 

& Co. KG 


19.129 

Repayment on the sale of plants 6-month Euribor, plus 200 basis points 

The shares of these companies have been recognised at the cost of purchase, taking account of changes in the net assets of the associated 

companies since the purchase of the shares. 

Summary of financial information about the companies included under the equity method: 

In € million 

AHG Autohandels- 

gesellschaft mbH 

Deutsche Raiffeisen- 

Warenzentrale GmbH 

123 

Raiffeisen 

Beteiligungs GmbH 

Total assets 118.240 28.651 3.137 

Revenues 345.875 160.996 — 

Net income/loss 1.186 0.546 12.216 

Assets 118.240 28.651 3.137 

Liabilities 111.612 17.129 2.527 

Share in annual result 0.484 0.198 — 

Book value of the financial assets 3.335 4.195 1.523 


Aufwind BB GmbH & Co. 

Zwanzigste Biogas KG 

Aufwind Schmack Első 

Biogáz Szolgáltató Kft. 

Frisch & Frost Nahrungsmittel 

Gesellschaft m.b.H 

Total assets 6.006 23.564 40.752 

Revenues 0.681 — 36.125 

Net income/loss – 0.316 – 0.149 – 3.111 

Assets 6.006 23.564 40.752 

Liabilities 6.330 23.711 27.170 

Share in annual result — — – 0.208 

Book value of the financial asset 0.002 0.015 4.676 

In € million CRE Project S.r.l. 

Süddeutsche Geothermie- 

Projekte GmbH & Co. KG 

Süddeutsche 

Geothermie-Projekte 

Verwaltungs GmbH EEV Beteiligungs GmbH 

Total assets 49.348 92.825 0.054 0.024 

Revenues 4.697 3.150 — — 

Net income/loss – 0.663 1.098 — 0.005 

Assets 49.348 92.825 0.054 0.024 

Liabilities 43.768 98.594 0.008 0.010 

Share in annual result – 0.324 0.549 — 0.002 

Book value of the financial asset 2.700 0.026 0.012 0.006




Heizkraftwerke-Pool 

Verwaltungs-GmbH 

Heizkraftwerk Cottbus 

Verwaltungs GmbH 

EAV Energietechnische 

Anlagen 

Verwaltungs-GmbH 

BVT Technische Anlagen 

GmbH & Co. Blockheizkraftwerke 

KG 

Total assets 0.115 0.127 0.155 0.132 

Revenues 0.921 0.250 1.081 0.572 

Net income/loss 0.767 0.213 0.899 0.397 

Assets 0.115 0.127 0.155 0.132 

Liabilities 0.012 0.008 0.011 0.039 

Share in annual result 0.177 0.071 0.299 0.138 

Book value of the financial asset 0.009 0.009 0.025 — 

A total of 25 (2010: 28) associated companies of generally secondary importance for the consolidated financial statements have been accounted for 

at amortised cost and by using the equity method. 

(B.3.) Summary of the changes to the group of consolidated companies of BayWa AG 

Compared with the previous year, the group of consolidated companies, including the parent company, has changed as follows: 

Germany International Total 

Included as per 31/12/2010 51 36 87 

of which fully consolidated 41 32 73 

of which recognised at equity 10 4 14 

Included as per 31/12/2011 63 59 122 

of which fully consolidated 52 56 108 

of which recognised at equity 11 3 14 

All group holdings are listed separately (appendix to the Notes to the Consolidated Financial Statements). 

(B.4.) Principles of consolidation 

Capital consolidation at the time of initial consolidation is carried out through offsetting the purchase price against the fair value of the identifiable 

assets, liabilities and contingent liabilities of the subsidiaries at the time of acquisition (purchase method). If the cost of purchase exceeds the fair value 

of the identifiable assets, liabilities and contingent liabilities purchased, the difference is disclosed as goodwill under intangible assets as part of noncurrent 

assets. Goodwill is subject to an annual impairment test (Impairment Only Approach). If the carrying amount of goodwill is higher than the 

recoverable amounts, impairment must be carried out; otherwise goodwill remains unchanged. If the cost of purchase is lower than the fair value of 

the identifiable assets, liabilities and contingent liabilities, the differences are booked immediately through profit and loss. 

All receivables and liabilities as well as provisions within the group of consolidated companies are offset. Interim results, if material, are eliminated. 

Intra-group revenues, expenses and earnings are netted.


(B.5.) Currency translation 

The translation of the financial statements prepared in a foreign currency into euros is carried out by applying the concept of functional currency 

as defined under IAS 21(“The Effect of Changes in Foreign Exchange Rates”). The companies of the BayWa Group operate independently. They 

can therefore be considered “foreign operations”. Functional currency is the respective national currency. Assets and liabilities are converted at the 

exchange rate on the reporting date. With the exception of income and expenses included directly in equity, equity is carried at historical rates. The 

translation of the income statement is carried out using the average rate for the year. To differences resulting from currency translation are treated 

without effect on income, until such time as the subsidiary is disposed of, and set off against other reserves in equity. The differences resulting from 

currency translation fell by €1.946 million in the reporting year. 

The exchange rates used for translations are shown in the table below: 


Balance sheet Income statement 

middle rate on average rate 

1 Euro 31/12/2011 31/12/2010 2011 2010 

Poland PLN 4.458 3.975 4.115 4.011 

Serbia RSD 104.641 105.498 102.255 102.768 

Czech Republic CZK 25.800 25.060 24.625 25.349 

Hungary HUF 311.130 278.750 279.346 276.149 

Switzerland CHF 1.216 1.250 1.232 1.375 

USA USD 1.294 1.336 1.393 — 

UK GBP 0.835 0.861 0.870 — 

125


(C.) Notes to the Balance Sheet 

(C.1.) Intangible assets 

Intangible assets purchased against payment are capitalised at the cost of purchase and, with the exception of goodwill, amortised, as scheduled, 

on a straight-line basis over their useful economic lives (generally three to five years). Intangible assets which have been created in-house (selfcreated) 

have been capitalised in accordance with IAS 38 (“Intangible Assets”) if it is likely that the future economic benefit will accrue from the 

use of the assets and if the cost of the assets can be reliably determined. These assets have been recognised at cost of purchase or of production, 

with an appropriate portion of the overheads relating to their development, and amortised, as scheduled, on a straight-line basis. The calculation 

of unscheduled write-downs has been carried out in consideration of IAS 36 “Impairment of Assets”. Impairment amounting to €1.008 million was 

carried out on the goodwill of BayWa Bau und Gartenmarkt Weinsberg GmbH & Co. KG owing to the imminent integration of the location with effect 

from 1 January 2012 and its integration into newly established BayWa Bau- & Gartenmärkte GmbH & Co. KG. Moreover, impairment amounting to 

€1.174 million was carried out on part of the goodwill of Stark GmbH & Co. KG due to the closure of a location scheduled for the following year. No 

impairment on goodwill was carried out in the previous year. 

The goodwill disclosed under intangible assets relates to the following company acquisitions: 


„UNSER LAGERHAUS“ WARENHANDELSGESELLSCHAFT m.b.H. 0.624 0.624 

AWS Entsorgung GmbH Abfall & Wertstoff Service 0.507 — 

Bauzentrum Westmünsterland GmbH & Co. KG 0.696 0.696 

BayWa Bau und Gartenmarkt Weinsberg GmbH & Co. KG (integrated into BayWa AG) — 1.008 

r.e Bioenergie GmbH (formerly: Aufwind Neue Energien GmbH) 1.428 1.257 

bs Baufachhandel Brands & Schnitzler GmbH & Co. KG 1.635 1.635 

BSF BauCenter GmbH (integrated into BayWa AG) 0.492 0.492 

CLAAS Württemberg GmbH 1.189 — 

Dulas MHH Ltd. 2.242 — 

ECOWIND Handels- & Wartungs-GmbH 1.348 — 

EUROGREEN Group 3.345 3.345 

Focused Energy LLC 13.460 — 

Krois Baustoffe + Holz Handelsgesellschaft mbH (integrated into BayWa AG) 0.665 0.665 

Küppers Group (integrated into BayWa AG) 1.378 1.378 

L & L Rotorservice GmbH 1.097 — 

Lukta Sp. z o.o. (reclassified as “non-current assets held for sale”) — 0.161 

LTZ Chemnitz GmbH 0.030 — 

MHH Solartechnik GmbH 14.035 13.081 

Mobau-Marba GmbH (operations transferred to BayWa AG) 2.343 2.343 

Net Environment S.L.U. 0.868 0.868 

Raiffeisen-Kraftfutterwerke Süd GmbH 0.409 0.409 

RWA SLOVAKIA spol. s.r.o. 0.152 0.152 

Schradenbiogas GmbH & Co. KG 1.924 1.824 

Sempol spol. s.r.o. 0.245 0.245 

Stark GmbH & Co. KG (goodwill from asset deal) 0.450 1.624 

Voss GmbH & Co. KG 1.913 1.913 

WAV Wärme Austria VertriebsgmbH 4.224 — 

WKN USA, LLC 0.232 — 

Wilhelm Bruchof GmbH & Co. KG (integrated into BayWa AG) 1.364 1.364 

Other 1.142 1.462 

59.437 36.546 

The changes in the reporting year relate mainly to goodwill from the initial inclusion of the companies acquired into the group of consolidated companies. 

Moreover, the goodwill recognised for r.e Bioenergie GmbH (€0.171 million) and MHH Solartechnik GmbH (€0.954 million) has risen due to 

subsequent purchase price payments for profit guarantees furnished by the seller. The increase of €0.100 million in the goodwill of Schradenbiogas 

GmbH & Co. KG has resulted from the disbursement of collateral retained. 



Of the overall goodwill disclosed, an amount of €1.238 million is tax deductible in subsequent years. 

Goodwill is subject to an impairment test once a year. In the context of the impairment test, the residual values of the goodwill allocated to the 

individual cash generating unit are compared with fair value in use. 

Cash generating units are essentially defined as legally independent organisation units directly assignable to the reporting segments within the 

BayWa Group (see Note B.1.). In the event of a business combination of legally independent organisation units, the respective operating unit or the 

respective geographically defined segment of the incorporating organisation unit is viewed as the cash generating unit. 

The calculation of the value in use is based on the net present value of future cash flows anticipated from the ongoing use of the cash generating unit. 

In this process, the forecast of the cash flows is derived from the current planning prepared by Management on a three-year horizon, as well as other 

assumptions which are based on the knowledge available at the time, market forecasts and empirical experience. 

Discount factors of an average 6.7% have been applied to the cash flow series. The growth rates are the expected average for the sector. For the 

purpose of extrapolating the forecast based on the third budget year, a currently expected growth rate of 2.0% has been assumed for the periods 

thereafter. The impairment test carried out shows that there was no need for value adjustments in the reporting year. 

The following is a breakdown of the additions to intangible assets: 


Additions from developments within the company 0.449 0.973 

Additions from separate acquisition 16.411 5.000 

Additions from business combinations 47.831 11.575 

64.691 17.548 

(C.2.) Property, plant and equipment 

All property, plant and equipment are used for operations. This item is measured at the cost of acquisition and production, minus scheduled 

depreciation. If necessary, unscheduled depreciation is carried out. The cost of acquisition is made up of the purchase price, incidental purchase 

(transaction) costs and subsequent purchase costs, less any price reductions received. If there is an obligation to decommission an asset which 

is part of non-current assets at the end of its useful life, or to dismantle or rebuild a location, the estimated costs of these activities will raise the 

cost of purchasing the asset. Property, plant and equipment are written down on a straight-line basis over the course of their useful life. Scheduled 

depreciation is based on the following periods of useful life applied uniformly throughout the Group: 

Company premises and office buildings 25 – 33 

Residential buildings 50 

Land improvements 10 – 20 

Technical facilities and machinery 4 – 20 

Other property, plant and office equipment 3 – 15 

The calculation of unscheduled depreciation has been carried out in consideration of IAS 36 “Impairment of Assets”. Impairment requirements are 

calculated by comparing the carrying amount of land and buildings and technical facilities with their recoverable amount. The calculation of the recoverable 

amount is based on the value in use. Calculations did not show any need for impairment in the financial year 2011. 

Since the reasons for lower fair value no longer applied in the reporting year, write-ups of €1.449 million were carried out on the property, plant and 

equipment of RWA SLOVAKIA spol. s.r.o., Bratislava, Slovakia. 

Borrowing costs in connection with the purchase of property, plant and equipment which, under IAS 23, should be capitalised, are not recognised in 

BayWa’s consolidated financial statements owing to the lack of qualifying assets. 


127 

In years


Assets from leasing are also disclosed under non-current assets. These are mainly finance lease qualifications in the area of real estate and EDP hardware. 

Under IAS 17, lease agreements are to be valued on the basis of opportunities and risks according to whether the beneficial ownership of the 

object of leasing is allocable to the lessee (finance lease) or the lessor (operating lease). Consequently, under IFRS the substance rather than the form 

of such transactions is the factor for determining value. 

Under IAS 17, property, plant and equipment rented by way of finance lease are reported at fair value provided that the net present value of the leasing 

payments is not lower. Depreciation is carried out on a straight-line basis, as scheduled, over the expected useful life or over the shorter term of the 

contract. Payment obligations arising from future leasing instalments are reported on the liabilities side under other financial liabilities. 

Non-current assets comprise technical facilities and machinery worth €6.873 million (2010: €3.183 million) which qualify as finance leases and which 

are assignable to the Group as beneficial owner owing to the content of the related leasing agreements. In individual cases purchase options, classified 

as finance leases, were agreed at the end of the term for leasing agreements. A decision is made on a case-by-case basis as to whether to exercise 

the option to purchase at the end of the respective term. 

The overall future leasing instalments of the respective leasing agreements are as follows: 


Sum total of future minimum lease payments 

Not later than one year 1.982 0.652 

Later than one year and not later than five years 5.230 2.475 

Later than five years 0.272 — 

7.484 3.127 

Interest portion included in future minimum lease payments 




0.445 0.412 

Present value of future minimum lease payments 




7.039 2.715 



In respect of agreements which are classified as operate leases, largely real estate rental contracts, vehicle leasing and irrevocable building rights 

agreements, the future minimum lease payments are as follows: 


Sum total of future minimum lease payments 



Later than five years 80.007 89.754 

205.594 205.047 

In the financial year, rental expenses of €37.312 million from operate lease arrangements were paid. 

(C.3.) Participating interests recognised and equity, other financial assets and securities 

The financial assets of the BayWa Group comprises interests in non-consolidated affiliated companies, interest in associated companies and other 

holdings, credit balances with cooperatives and securities. These financial assets are allocated to the categories “held for trading”, “available for sale” 

and “held to maturity”, capitalised and measured in accordance with IAS 39. 

Financial assets held for trading are always recognised at their fair value. The fair value corresponds to the market or stock market value. Changes in 

fair value are recorded through profit and loss under other income from shareholdings. 

Securities assigned to the “financial assets held for trading” category were stated at a fair value totalling €1.811 million (2010: €1.841 million) on the 

reporting date. As they are held for trading, they have been disclosed under current assets. 

Assets assigned to the “available for sale” category are reported at fair value provided there is an active market or fair values can be reliably calculated 

with a justifiable amount of effort, recognised at their fair values and otherwise carried at amortised cost. In the case of assets stated at fair value, the 

difference between the amortised cost originally recognised and the fair value on the reporting date is offset in equity on the reporting date without 

effect on income. Assets reported at fair value are measured using stock market quotations prevailing on the reporting date. 

In the reporting year, impairment totalling €5.189 million was carried out on assets classified as “available for sale” and recognised at fair value. 

Participating interests classified as “available for sale” in Bayerische Raiffeisen-Beteiligungs-AG, Beilngries, and Raiffeisen Zentralbank AG, Vienna, 

were reported at their amortised cost as there was no active market for the securities, and it was therefore not possible to ascertain the fair market 

value. Calculating fair values based on a discounted cash flow method was not possible due to the lack of available data. Owing to the fact that both 

companies belong to a cooperative federation, the marketability of the participating interests is also limited. 

Similarly, all the shares in non-consolidated subsidiaries are recognised at amortised cost. Sale is at present not intended in the case of financial 

assets measured at amortised cost. 

Associated companies included in the group of consolidated companies are recognised in application of the equity method in proportion to their 

equity. 

Financial assets held to maturity are disclosed exclusively at amortised cost. There are currently no assets classified as “held to maturity” in the 

BayWa Group. 


129


Analysis of Fixed Assets for 2011 

Note (C.1. – C.4.) 



In € million Acquisition/production costs Depreciation/amortisation Book values 

01/01/2011 

Currency 

differences 

Changes in 

consolidated 

group Additions Disposals Transfers 31/12/2011 01/01/2011 

Currency 

differences 

Changes in 

consolidated 

group 

Write-downs 

in current year 


Disposal- 

related 

depreciation Write-ups Transfers 31/12/2011 31/12/2011 31/12/2010 

Intangible assets 

Industrial property rights, similar rights 

and assets 

83.594 

0.447 22.597 16.372 

1.127 

3.951 125.834 

56.913 – 0.026 

0.304 10.624 

1.118 

— 

0.024 66.721 59.113 26.681 

Goodwill 37.151 – 0.512 25.554 — — — 62.193 0.605 – 0.032 — 2.183 — — — 2.756 59.437 36.546 

Prepayments on account 0.907 — – 0.016 0.488 0.049 – 0.842 0.488 — — — — — — — — 0.488 0.907 

121.652 – 0.065 48.135 16.860 1.176 3.109 188.515 57.518 – 0.058 0.304 12.807 1.118 — 0.024 69.477 119.038 64.134 

Property, plant and equipment 

Land, similar rights and buildings, 

including buildings on leasehold land 

1,312.047 – 1.090 

2.031 34.036 25.288 – 9.557 1,312.179 

661.932 – 0.381 

0.393 32.014 19.073 

1.449 – 3.237 670.199 641.980 650.115 

Plant and machinery 

Other facilities, fixtures 

519.331 – 1.851 165.003 59.619 32.393 69.566 779.275 395.192 – 1.085 52.703 25.938 28.629 — 1.238 445.357 333.918 124.139 

and office equipment 

342.114 – 0.137 

3.325 42.272 33.599 – 12.315 341.660 

241.633 – 0.128 

1.962 29.294 29.761 

— – 0.153 242.847 98.813 100.481 

Prepayments and construction in progress 42.283 – 0.959 – 18.764 52.371 0.205 – 39.586 35.140 – 0.001 — – 0.290 — — — 0.291 — 35.140 42.284 

2,215.775 – 4.037 151.595 188.298 91.485 8.108 2,468.254 1,298.756 – 1.594 54.768 87.246 77.463 1.449 – 1.861 1,358.403 1,109.851 917.019 

Participating interests recognised at equity 45.733 — – 20.902 0.862 5.445 – 3.715 16.533 — — — — — — — — 16.533 45.733 

Financial assets 

Shareholdings in affiliated companies 34.789 — 6.100 6.847 0.198 – 6.047 41.491 12.522 — — 0.871 — 0.218 — 13.175 28.316 22.267 

Loans to affiliated companies 0.700 — 1.137 0.426 0.136 — 2.127 — — — 0.166 — — — 0.166 1.961 0.700 

Holdings in other companies 147.467 — 0.015 3.916 4.311 3.705 150.792 — — — 5.157 1.036 0.013 — 4.108 146.684 147.467 

Loans to associated companies 30.073 — — 1.860 11.741 — 20.192 — — — — — — — — 20.192 30.073 

Non-current marketable securities 5.004 — 0.629 0.061 — — 5.694 0.492 — 0.103 0.163 — — — 0.758 4.936 4.512 

Other loans 7.654 — 0.094 3.280 2.456 — 8.572 0.066 — — — — — — 0.066 8.506 7.588 

225.687 — 7.975 16.390 18.842 – 2.342 228.868 13.080 — 0.103 6.357 1.036 0.231 — 18.273 210.595 212.607 

Investment property 

Land 55.058 — – 0.004 0.001 0.892 – 2.514 51.649 5.886 – 0.001 — 0.331 — – 0.900 4.654 46.995 49.172 

Buildings 85.557 — — 0.260 5.930 – 5.772 74.115 63.090 — 2.120 3.498 — – 4.189 57.523 16.592 22.467 

140.615 — – 0.004 0.261 6.822 – 8.286 125.764 68.976 — – 0.001 2.120 3.829 — – 5.089 62.177 63.587 71.639 

Consolidated non-current assets 2,749.462 – 4.102 186.799 222.671 123.770 – 3.126 3,027.934 1,438.330 – 1.652 55.174 108.530 83.446 1.680 – 6.926 1,508.330 1,519.604 1,311.132 

131


Analysis of Fixed Assets for 2010 

Note (C.1. – C.4.) 



In € million Acquisition/production costs Depreciation/amortisation Book values 

01/01/2010 

Currency 

differences 

Changes in 

consolidated 

group Additions Disposals Transfers 31/12/2010 01/01/2010 

Currency 

differences 

Changes in 

consolidated 

group 

Write-downs 

in current year 


Disposal- 

related 

depreciation Write-ups Transfers 31/12/2010 31/12/2010 31/12/2009 

Intangible assets 

Industrial property rights, similar rights 

and assets 

89.428 

0.043 – 4.494 

4.891 

2.786 – 3.488 83.594 

54.649 

0.028 – 4.785 

9.080 

2.068 

— 

0.009 56.913 26.681 34.779 

Goodwill 30.650 — 8.258 — 1.755 – 0.002 37.151 1.273 — — — 0.643 — – 0.025 0.605 36.546 29.377 

Prepayments on account 1.420 0.040 – 1.447 1.082 0.001 – 0.187 0.907 0.021 — – 0.021 — — — — — 0.907 1.399 

121.498 0.083 2.317 5.973 4.542 – 3.677 121.652 55.943 0.028 – 4.806 9.080 2.711 — – 0.016 57.518 64.134 65.555 

Property, plant and equipment 

Land, similar rights and buildings, 

including buildings on leasehold land 

1,322.671 

0.708 – 25.271 44.169 15.775 – 14.455 1,312.047 

659.342 

0.213 – 15.865 36.068 10.899 

0.657 – 6.270 661.932 650.115 663.329 

Plant and machinery 

Other facilities, fixtures 

577.652 0.739 – 23.419 22.734 30.994 – 27.381 519.331 412.982 0.417 – 14.045 21.340 24.506 — – 0.996 395.192 124.139 164.670 

and office equipment 

345.320 

0.346 – 5.808 29.611 28.285 

0.930 342.114 

242.538 

0.190 – 3.995 28.095 25.106 

— – 0.089 241.633 100.481 102.782 

Prepayments and construction in progress 12.609 – 0.055 3.861 38.218 0.880 – 11.470 42.283 0.061 — — — 0.062 — — – 0.001 42.284 12.548 

2,258.252 1.738 – 50.637 134.732 75.934 – 52.376 2,215.775 1,314.923 0.820 – 33.905 85.503 60.573 0.657 – 7.355 1,298.756 917.019 943.329 

Participating interests recognised at equity 37.961 — 2.724 5.048 — — 45.733 — — — — — — — — 45.733 37.961 

Financial assets 

Shareholdings in affiliated companies 19.192 — – 0.157 14.441 1.223 2.536 34.789 12.525 — — — 0.003 — — 12.522 22.267 6.667 

Loans to affiliated companies 1.254 — — — 0.554 — 0.700 — — — — — — — — 0.700 1.254 

Holdings in other companies 153.237 — 3.287 0.536 7.057 – 2.536 147.467 – 2.169 — — 0.017 – 2.152 — — — 147.467 155.406 

Loans to associated companies 17.842 — — 12.351 0.120 — 30.073 — — — — — — — — 30.073 17.842 

Non-current marketable securities 4.891 — – 0.003 0.107 — 0.009 5.004 0.343 — — 0.172 — 0.023 — 0.492 4.512 4.548 

Other loans 2.865 — 0.030 4.885 0.117 – 0.009 7.654 — — 0.066 — — — — 0.066 7.588 2.865 

199.281 — 3.157 32.320 9.071 — 225.687 10.699 — 0.066 0.189 – 2.149 0.023 — 13.080 212.607 188.582 

Investment property 

Land 57.712 0.001 — 0.871 3.036 – 0.490 55.058 4.778 — — 1.738 0.320 — – 0.310 5.886 49.172 52.934 

Buildings 87.852 — — 1.423 4.840 1.122 85.557 61.953 — — 3.005 2.865 — 0.997 63.090 22.467 25.899 

145.564 0.001 — 2.294 7.876 0.632 140.615 66.731 — — 4.743 3.185 — 0.687 68.976 71.639 78.833 

Consolidated non-current assets 2,762.556 1.822 – 42.439 180.367 97.423 – 55.421 2,749.462 1,448.296 0.848 – 38.645 99.515 64.320 0.680 – 6.684 1,438.330 1,311.132 1,314.260 

133


(C.4.) Investment property 

The “Investment property” item comprises 156 (2010: 180) pieces of land and buildings under lease and/or not essential to the operations of 

the Group. Allocation is made if the property is leased by third parties, if it is land or greenfield sites not built on and not expressly intended for 

development or use, and in the case of properties used for a number of purposes, if use by the Group is of minor significance. Properties in this 

category are mainly warehouses, market buildings, garden centres, farm buildings (barns etc.), silos, farmland and other undeveloped land as well as, 

to a minor extent, office and residential buildings. 

In accordance with the option under IAS 40, these properties are recognised exclusively at amortised cost and written down over their periods of 

useful life as indicated under Note C.2. The book value on the reporting data came to €63.587 million (2010: €71.639 million). In the financial year, 

scheduled depreciation carried out on buildings came to €2.120 million (2010: €2.645 million). The expense in the same amount has been included 

under depreciation and amortisation in the income statement. In the year under review, buildings in the property, plant and equipment and land with 

a book value of €1.583 million and €1.614 million were reclassified from investment property under property, plant and equipment. 

The fair value of these properties was set at €142.583 million (2010: €148.706 million). Fair value is not usually calculated by an appraiser. Fair value 

on the reporting date is generally determined on the basis of discounted cash flow calculations. The value of the land is calculated using current, 

official standard land values. Location-related advantages and disadvantages are suitably taken into account. In the case of buildings let, the income 

value of the buildings was calculated by taking actual annual rental income generated, less standard management expenses and the residual useful 

life of the building. A comparison of fair value against the carrying amounts of the individual properties showed that there were no impairment 

requirements in the reporting year. As a result, there were no unscheduled write-downs carried out on land (2010: €1.738 million) and on buildings 

(2010: €0.360 million). 

Rental income came to €6.352 million (2010: €6.036 million), operating expenses (excluding depreciation) for the properties for which rental income 

was realised came to €0.528 million (2010: €0.590 million). In respect of properties for which no rental income was generated, operating expenses 

came to €0.133 million (2010: €0.304 million). 

(C.5.) Tax claims 

Tax receivables comprise the long-term corporate tax credit of BayWa AG pursuant to Section 37 para. 4 of the German Corporate Tax Act (KStG) and 

also short-term reimbursement claims; they break down as follows: 


Non-current tax claims (with a residual term of more than one year) 6.658 7.564 

Current tax claims (with a residual term of less than one year) 43.059 21.478 

49.717 29.042 



(C.6.) Other receivables and other assets 

Other receivables and other assets are recognised at amortised cost. All discernible risks are taken account of by appropriate value adjustments. If a 

receivable shows signs of impairment, a value adjustment is carried out through to the net present value of expected future cash flows. Receivables 

which are non- or low-interest-bearing with terms of more than one year have been discounted. 

The “Other receivables and other assets” item breaks down as shown below; the fair values of the items disclosed do not materially diverge from the 

book values disclosed: 


Non-current receivables (with a residual term of more than one year) 

Trade receivables 2.440 2.156 

Other receivables, including deferred income 16.225 14.654 

18.665 16.810 

Current receivables (with a residual term of up to one year) 

Trade receivables 513.017 435.283 

Receivables from affiliated companies 28.723 11.335 

Receivables from companies in which a participating interest is held 34.655 18.784 

Positive market value of derivatives 1.195 2.304 

Other receivables, including deferred income 164.922 195.235 

742.512 662.941 

The table below shows the extent of the credit risks inherent in the receivables and other assets. 


Gross value 2011 

Specific value 

adjustments on 

receivables 

Receivables 

neither overdue 

nor with value 

adjustments 


Overdue 

receivables 

without value 

adjustments 

Of which: without specific value adjustments on the reporting 

date and overdue in the following time bands 

less than 

30 days 

between 31 

and 60 days 

between 61 

and 90 days 

135 

91 days 

and over 

Receivables 785.489 68.745 586.138 130.606 100.011 15.410 5.417 9.768 


Gross value 2010 

Specific value 

adjustments on 

receivables 

Receivables 

neither overdue 

nor with value 

adjustments 

Overdue 

receivables 

without value 

adjustments 

Of which: without specific value adjustments on the reporting 

date and overdue in the following time bands 

less than 

30 days 

between 31 

and 60 days 

between 61 

and 90 days 

91 days 

and over 

Receivables 699.491 42.993 568.714 87.784 71.463 8.170 2.766 5.385 

The BayWa Group’s customer structure is strongly diversified, both regionally and in terms of the specific segments. As part of risk management, 

minimum requirements for credit worthiness and, beyond this, individual credit limits in respect of individual customers, have been established for all 

customers of the BayWa Group. The receivables portfolio of the BayWa Group is largely made up of numerous small receivables. Credit limits of more 

than €1 million are only accorded to a small number of customers with particularly good credit standing. The continual analysis of the receivables 

portfolio and special monitoring of customers with high credit limits enable the early identification and evaluation of concentration risks (risk clusters). 

As per 31 December 2011, the credit risk positions of 58 debtors (2010: 38) were more than €1 million respectively. The Group does not anticipate 

any material default risk in respect of these customers.


Value adjustment account: 

There are material value adjustments requiring disclosure under the IFRS 7 category “Loans and Receivables (LaR)” in the BayWa Group in the 

“Trade receivables” balance sheet item under other receivables and other assets; otherwise, value adjustments play a minor role. 

The value adjustment account has developed as follows: 


Status of value adjustments on 1 January 19.740 22.749 

Currency differences – 0.306 – 0.111 

Changes in specific value adjustments 3.619 – 5.734 

Changes in specific value adjustments calculated on a flat rate basis 1.259 2.836 

Status of value adjustments on 31 December 24.312 19.740 

The estimates underlying the calculation of value adjustments to trade receivables are based on historical default rates. In the reporting year, there 

was a reversal of impairment with effect on income of €4.878 million from the higher level of value adjustment needed for receivables existing on the 

reporting date. 

Receivables due from affiliated companies and shareholdings relate to both trade receivables and short-term financings. 

Other assets comprise first and foremost supplier credits not yet settled. In addition, payments on account for inventories amounting to 

€40.571 million (2010: €41.244 million) are included. 

In order to enhance its financing structure, the Group has secured trade receivables in a total volume of €150.0 million by way of asset-backed 

securitisation (ABS measure). Utilisation is adjusted to the variable and seasonal conditions and came to €113.733 million (2010: €79.942 million). 

(C.7.) Actual and deferred tax assets 

Income tax expenses constitute the sum total of current tax expenses and deferred taxes. Current tax expenses are calculated on the basis of taxable 

income in the year. Taxable income differs from net income in the consolidated income statement due to expenses and income which are either 

taxable or tax deductible in subsequent years or never. The Group’s liability in respect of current taxes is calculated on the basis of the prevailing 

tax rates or those, which from the standpoint of the reporting date, will be valid in the near future. Deferred taxes are recognised for the differences 

between the carrying amounts of the assets and liabilities in the consolidated financial statements and the corresponding tax valuations in the 

context of calculating taxable income. Deferred tax liabilities are generally reported for all taxable temporary differences; deferred tax assets are only 

recognised if it is probable that there are taxable gains which can be used for deductible temporary differences. Such deferred tax assets and deferred 

tax liabilities are not reported if they arise from temporary differences in goodwill (separate consideration of tax-related goodwill) or from the initial 

recognition (excepting business combinations) of other assets and liabilities resulting from transactions which have no effect on taxable income or 

net income. Deferred tax liabilities are formed for taxable temporary differences arising from shares held in subsidiaries or in associated companies 

as well as interests in joint ventures, except where the timing of the reversal can be controlled by the Group and it is probable that the temporary 

difference will not reverse in the foreseeable future. Deferred tax assets arise through temporary differences in the context of investments and loans 

which are only recorded to the extent that it is probable that there will be sufficient taxable income available from which assets from temporary 

differences can be used and where the assumption can be made that they will reverse in the foreseeable future. 

The book value of deferred tax assets is assessed every year on the reporting date and lowered if it is unlikely that there will be sufficient taxable 

income for fully or partially realising the claim. 



Deferred tax assets and liabilities are calculated on the basis of expected tax rates (and tax laws) which are likely to be valid at the time when liabilities 

are settled or assets realised. The measurement of deferred tax assets and liabilities reflects the fiscal consequences which would arise from the way 

in which, on the reporting date, the Group expects the liabilities to be settled and the assets realised. 

Deferred tax assets and liabilities are netted if there is an enforceable right for offsetting current tax assets against current tax liabilities and if they are 

subject to income tax levied by the same tax authority, and the Group has the intention of settling its current tax assets and current tax liabilities on a 

net basis. Current and deferred taxes are reported as expenses or income through profit and loss unless they are incurred in connection with items not 

reported in the income statement (either in other results or directly in equity). In this case, the tax is also to be reported outside the income statement. 

Moreover, there is no recognition through profit and loss if tax effects arise in connection from the initial recognition of a business combination. In the 

case of a business combination, the tax effect is to be included when the business combination is accounted for. 

(C.8.) Inventories 

Raw materials, consumables and supplies, semi-finished and finished goods, as well as services and merchandise are disclosed under inventories. 

Raw materials, consumables and supplies as well as merchandise are always valued at their average cost of acquisition, taking account of lower 

net realisable values. In some cases, the FIFO (first in first out) method was applied. Semi-finished and finished goods are recognised at their 

cost of production. They include all costs directly and allocable to the production process, as well as an appropriate portion of production-related 

overheads. Financing costs which can be directly assigned to the purchase, construction or production of a qualifying asset are capitalised as part of 

the acquisition or production costs of the asset. Inventory risks arising from the storage period or diminished marketability trigger impairment. Lower 

values on the reporting date due to lower realisable value are accounted for. 

Inventories disclosed break down as follows: 


Raw materials, consumables and supplies 31.859 25.403 

Unfinished goods/services 176.729 128.196 

Finished goods/services and merchandise 956.840 908.730 

1,165.428 1,062.329 

In the case of lower net realisable value, write-downs are generally carried out in the form of specific value adjustments. Only in exceptional cases 

was a flat rate calculation applied. At the end of the reporting period, there was an increase in impairment through profit and loss of €74.516 million 

in the reporting year, up from €68.542 million in 2010. There were no reversals through profit and loss in the year under review. 

The carrying amount of the inventories reported at fair value less costs to sell amounted to €606.008 million on the reporting date (2010: 

€523.604 million). 

An amount of €2.001 million of the inventories disclosed on the reporting date served as collateral for liabilities. 

In the reporting year, borrowing costs of €0.376 million (2010: €0.767 million) were capitalised as part of the cost of acquisition or production of 

unfinished goods. The calculation of borrowing costs eligible for capitalising was based on a borrowing rate of 4.20%. 

The calculation of inventories is carried out through a (brought forward) end-of-period inventory or through continuous inventory. 

(C.9.) Cash and cash equivalents 

Cash and cash equivalents worth €86.997 million (2010: €28.208 million) comprise cash in hand, cheques and deposits in banks falling due in 

the short term. 


137


(C.10.) Non-current assets held for sale/disposal groups 

Assets of the BayWa Group are classified as non-current assets held for sale if there is a Board of Management resolution on the sale and the sale is 

highly probable within the following year (2012). 

On the reporting date there were nine properties (2010: 15) intended for sale and disclosed under the non-current assets held for sale item. This is 

primarily undeveloped or developed land with warehouses, silos, farm buildings (barns etc.) or office/residential buildings. 

In the case of the non-current assets held for sale disclosed under the Building Materials Segment, the assets and liabilities of the DIY & Garden 

Centres Business Unit of BayWa AG included in the consolidated financial statements and measured at book value were partly classified as disposal 

groups within the meaning of IFRS 5 and assigned accordingly to non-current assets held for sale/disposal groups. BayWa AG is to hive off its 

business activities in the field of DIY and garden centres and integrate them into newly established BayWa Bau- & Gartenmärkte GmbH & Co. KG, 

headquartered in Munich, in which Semer Beteiligungsgesellschaft mbH holds an initial interest of currently 50% and will gradually raised its interest 

to 100%. The total purchase price, which comes to €28 million and corresponds to the book value of equity, will be due and payable in several stages. 

The new company will take up operations on 1 January 2012 and will enter into a strategic partnership with the Hellweg Group. The interest in BayWa 

Bau- & Gartenmärkte GmbH & Co. KG will be included in the BayWa Group in future at equity. 56 DIY and garden centres of BayWa will be transferred 

to the new company but will continue to trade under the BayWa brand. The real estate will remain the property of BayWa AG and will be let to BayWa 

Bau- & Gartenmärkte GmbH & Co. KG. All other DIY and garden centres of BayWa AG that are closely linked with the locations of other business units 

will remain the property of BayWa AG. Similarly, the DIY and garden centres of the Austrian Group companies are also not part of the transaction. The 

transaction is still subject to approval by the German anti-trust authority. 

In the case of the non-current assets disclosed on the reporting date under the Other Activities Segment, the assets and liabilities of Ybbstaler 

Fruit Austria GmbH, Kröllendorf, Austria, and its subsidiary Ybbstaler Fruit Polska Sp. z o.o., Chelm, Poland, included in the consolidated financial 

statements and measured at book value on 31 December 2011, will be classified as a disposal group within the meaning of IFRS 5 and assigned 

accordingly to non-current assets held for sale/disposal groups. RWA Raiffeisen Ware Austria Aktiengesellschaft, Vienna, Austria, a majority holding 

of BayWa AG, and AGRANA, a sugar, starch and fruit group, are to combine their subsidiaries operating in the fruit juice concentrate business under 

a joint venture. The joint venture, in which AGRANA will hold an interest of 50.01%, will be fully consolidated by the AGRANA. RWA AG will hold a 

stake of 49.99% which can be raised to 50% after five years have elapsed. The participation will be recognised at equity in the consolidated financial 

statements of BayWa AG as from the date when the joint venture takes effect. Approval by the anti-trust authority for the transaction is still pending. 

The standard under IFRS 5 regulating measurement specifies that scheduled depreciation of the respective assets must be suspended and only 

unscheduled write-downs be carried out owing to lower fair value, less costs to sell. 

There were assets with book values assigned to non-current assets held for sale totalling €258.800 million on the reporting date (2010: €49.104 

million). Fair value less estimated costs to sell came to a total of €303.113 million (2010: €61.887 million). Owing to the difference between the 

carrying amount and the respective fair value assigned, no depreciation had to be carried out due to lower fair value as per 31 December 2011. 



The non-current assets held for sale/disposal groups break down as follows: 


2011 



Segment 

139 

Other Activities 

Segment Total 




Financial assets — 0.041 0.041 

Investment property — 0.356 0.356 

Deferred tax assets — 0.692 0.692 

13.539 38.296 51.835 


Inventories 89.926 70.996 160.922 

Tax assets — 2.324 2.324 

Other receivables and other assets 1.305 29.951 31.256 

Cash and cash equivalents 2.775 9.688 12.463 

94.006 112.959 206.965 

Non-current assets held for sale/disposal groups 107.545 151.255 258.800 




Segment Total 


Intangible assets 3.710 — 3.710 


36.765 12.339 49.104 

Non-current assets held for sale/disposal groups 36.765 12.339 49.104 

The gains from disposal realised in the current financial year in connection with non-current assets held for sale are reported in the income statement 

under other operating income (Note D.2.).


(C.11.) Equity 

The consolidated statement of changes in equity shows the development of equity in detail. 

Share capital 

On 31 December 2011, the share capital of BayWa AG of €87.921 million (2010: €87.612 million) was divided into 34,344,020 ordinary registered 

shares with an arithmetical portion in the share capital of €2.56 per share. Of the shares issued, 32,979,980 are registered shares with restricted 

transferability and 120,789 recently registered shares with restricted transferability (dividend-bearing employee shares from 1 January 2012 

onwards). 1,243,251 shares are not registered shares with restricted transferability. 

In respect of subscribed capital disclosed and pursuant to IAS 32, the share capital was reduced by the normal value of the shares bought back 

(19,500 units, the equivalent of €0.050 million) in previous years; the capital reserve also decreased by €0.063 millions for the same reason. No 

shares were bought back in the current financial year. 

The number of shares in circulation has changed in the period under review as follows: 


Registered shares without 

restricted transferability 

Registered shares with 

restricted transferability 

Status on 01/01/2011 1,243,251 32,960,480 

Issuing of employee shares — 120,789 

Status on 31/12/2011 1,243,251 33,081,269 

Subject to approval by the Supervisory Board, the Board of Management is authorised to raise the share capital on or before 29 May 2013 by up to 

a nominal amount of €10,000,000 through the issuance of new registered shares against cash contribution. 

Furthermore, subject to the approval of the Supervisory Board, the Management Board is authorised to raise the share capital one or several times 

on or before 31 May 2015 by up to a nominal amount of €4,696,151.04 through the issuance of new registered shares with restricted transferability 

against cash contribution to the employees of BayWa AG and of affiliated companies within the meaning of Section 15 et seq. of the German Stock 

Corporation Act (AktG). Shareholders’ subscription rights are excluded. Subject to approval by the Supervisory Board, the Board of Management 

is authorised to determine the further content and conditions under which the shares are to be issued. 

Subject to approval by the Supervisory Board, the Board of Management is authorised to raise the share capital one or several times on or before 

30 April 2016 by up to a nominal amount of €12,500,000 through the issuance of new registered shares with restricted transferability against 

cash contribution. The authorisation can be used in part amounts. Shareholders’ subscription rights are excluded. Subject to approval by the 

Supervisory Board, the Board of Management is authorised to determine the further content and conditions under which the shares are to be 

issued. 

Capital reserve 

The capital reserve of €91.536 million (2010: €88.441 million) is derived mainly from the premiums in an amount of €61.827 million from the capital 

increases executed to date by BayWa AG. Furthermore, premiums were generated on the nominal values of the BayWa shares issued in connection 

with the acquisition of RWA AG and WLZ AG, and the participations exchanged below their rating at the historical stock market prices. These have also 

been disclosed under capital reserve. 

In the financial year 2011, BayWa AG issued 120,789 new registered shares with restricted transferability (dividend bearing as from 1 January 2012) 

as part of its Employee Share Scheme. The exercise price of employee shares came to €16.91 and was thus 60% of the stock market price of 

registered BayWa shares with restricted transferability which, on the preceding day, had stood at €28.18; BayWa’s Board of Management had passed 

the resolution on the capital increase required for this measure. The advantage granted of €1.361 million, which was the difference between the 

actual buying price and the stock market price, was posted to capital reserve in accordance with IFRS 2 and reported as an expense. 

Revenue reserves 

The revenue reserves of the Group stood at €580.924 million on the reporting date (2010: €577.113 million). Of this amount, €6.076 million (2010: 

€6.040 million) was attributable to the statutory reserve, less €4.752 million (2010: €0.358 million) to the revaluation reserve and €579.600 million 

(2010: €570.715 million) to other reserves. Transfers to and withdrawals from the revenue reserves were recorded both at the parent company 

BayWa AG and at the consolidated subsidiaries.


Other reserves 

Other reserves mainly comprise consolidated profit available for distribution of €104.260 million (2010: €83.367 million) as well as currency differences 

of €1.017 million (2010: €1.946 million) carried without effect on income. 

Minority interest 

Minority interest in equity is especially attributable to cooperatives which hold stakes in the subsidiaries in Austria. 

Capital management 

The capital structure of the Group is made up of liabilities and equity. It is described in more detail in the Notes C.11. to C.18. Equity capital comes to 

around 27.3% of total equity. Equity capital ex-dividend has been reduced to 26.9% owing to the proposed dividend distribution of €20.522 million. 

The aim in the BayWa Group’s capital management process is to maintain a ratio of equity to debt of 30% to 70%. 

Gearing 

The management of the BayWa Group regularly reviews and controls the capital structure. The current net gearing, which is the result of the ratio of 

net debt to equity, comes to: 

In € million 31/12/2011 31/12/2010 

Non-current and current liabilities 1,154.691 809.467 

./. cash and cash equivalents – 86.997 – 28.208 

Net borrowings 1,067.694 781.259 

Equity 1,068.029 1,005.524 

Net debt to equity (in %) 100 78 

Owing to the strong seasonal fluctuations typical of the BayWa Group’s business, the gearing is very volatile. The ratio indicated at year-end is 

therefore only of limited relevance as a single criterion for assessing risk. For the purposes of comparison, the values as per 30 June are therefore 

also shown. 

In € million 30/06/2011 30/06/2010 

Non-current and current liabilities 754.023 503.020 

./. cash and cash equivalents – 32.926 – 40.293 

Net borrowings 721.097 462.727 

Equity 1,037.524 968.172 

Net debt to equity (in %) 70 48 

(C.12.) Pension provisions 

In Germany, there is a defined benefit statutory basic care scheme for employees which undertakes pension payments depending on the contributions 

made. In addition, pension provisions are set up as part of the company pension scheme to cover obligations arising from accrued pension rights 

and from ongoing payments to employees in active service and former employees of the BayWa Group and their dependents. According to the legal, 

economic and fiscal circumstances of the respective countries, there are different systems of provisioning for retirement which are generally based on 

the length of service and the remuneration of the employees. 

The BayWa Group’s current old-age pension commitments are based exclusively on defined benefit plans. They are based both on company 

agreements and commitments made on a case-by-case business. For the most part, these are final pay plans. The commitment of the company 

consists in fulfilling the committed benefits to active and former employees (“defined benefit plans”). The benefit commitments undertaken by the 

Group are financed by allocations to provisions. 


141


The pension provisions have been formed according to the projected unit credit method in accordance with IAS 19. Pursuant to this method, not only 

the pension and pension rights as per the reporting date, but also future increases in pensions and salaries are accounted for applying a cautious 

assessment of the relevant variables. This calculation is derived from actuarial appraisals and based on a biometric calculation. 

The amount of the pension obligations (defined benefit obligation) has been calculated using actuarial methods where estimates are indispensable. 

Along with assumptions of life expectancy, the following premises, which have been established uniformly for the companies in Germany and Austria, 

play a role. In the case of group companies which are not in Germany and Austria there are no benefit commitments. 

In percent 31/12/2011 31/12/2010 

Discount factor 5.00 5.00 

Salary trend 2.50 – 3.00 2.50 – 3.00 

Pension trend 1.15 – 2.50 1.15 – 2.50 

The salary trend reflects anticipated increases in salaries which, depending on inflation and the length of service to the company, among other factors, 

are estimated on an annual basis. 

Assumptions on life expectancy were based on the mortality tables of Prof. Dr. Klaus Heubeck (actuarial tables 2005 G). 

Increases and decreases in the present value of defined benefit obligations can give rise to actuarial gains or losses, the cause of which can also be 

divergences between actual and estimated parameters of calculation. The resulting actuarial gains and losses are recognised as income or expenses 

if the balance of the aggregated actuarial gains or losses not recorded is higher or lower than the so-called corridor at the end of the reporting period 

(10% of the present value of performance-based obligations at this time). This being the case, the difference between the actual and the disclosed 

obligation would be spread over the average remaining period of service of the employees covered by the plan and carried as income or expenses in 

the income statement. 

Following the switching of the calculation of pension provisions to comply with IAS 19, there are as yet no gains and losses to be netted off according 

to these rules. The actuarial gains not set off following the increase in the rate of pension progress posted €31.571 million (2010: actuarial gain of 

€24.754 million). 

Total expenses from pensions in the defined benefit plans amounted to €26.092 million (2010: €27.264 million) and comprise the following: 


Ongoing service cost 4.193 4.050 

+ share of interest 21.899 23.214 

= Sum total recognised through profit and loss 26.092 27.264 



The expenses arising from the accrued interest on rights acquired in the past are disclosed under the financial result. Rights accrued in the respective 

financial year are included under personnel expenses. During the reporting period, the net present value of defined benefit obligations (DBO) and the 

net value of amounts reported at Group level have changed as follows: 


DBO as per 1 January 449.780 425.667 

+ Changes in the group of consolidated companies 1.511 0.309 

+ Sum total through profit and loss 26.092 27.264 

+/– Changes in non-realised actuarial gains/losses 6.817 24.765 

– Pension payments during the reporting period – 31.586 – 27.880 

+/– Assumption of obligations – 0.075 – 0.345 

= DBO as per 31 December 452.539 449.780 


DBO as per 31 December 452.539 449.780 

+/– non-realised actuarial gains/losses – 31.571 – 24.754 

= Net value of amounts capitalised as per 31 December 420.968 425.026 

Owing to the integration of 56 DIY and garden centres into BayWa Bau- & Gartenmärkte GmbH & Co. KG as per 1 January 2012 and the associated 

transfer of the employees of these centres to the new company, the pension obligations of €4.721 million due to these employees are disclosed in 

these financial statements under non-current assets held for sale/disposal groups. 

DBO have developed as follows: 


2007 417.331 

2008 423.379 

2009 425.667 

2010 449.780 

2011 452.539 

The adjustments of the financial years based on empirical experience are as follows: 


2007 – 1.114 

2008 – 2.903 

2009 – 1.030 

2010 2.512 

2011 6.817 

In the financial year 2012, we expect that a probable amount of €26.035 million will be recorded through profit and loss for defined benefit plans. 


143


(C.13.) Other provisions 

Other provisions are formed when there is an obligation towards a third party which is likely to be called upon and when the amount of the provision 

can be reliably estimated. Provisions are recognised in the amount of the anticipated utilisation. Provisions which were not drawn upon in the following 

year are recognised at the discounted settlement amount as of the balance sheet date. Discounting is based on market rates. 

Other provisions are mainly attributable to: 


Non-current provisions (with a majority of more than one year) 

Obligations from personnel and employee benefits 54.832 58.139 

Other provisions 20.768 6.233 

75.600 64.372 

Current provisions (with a maturity of less than one year) 

Obligations from personnel and employee benefits 52.955 50.799 

Other provisions 63.525 55.488 

116.480 106.287 

Provisions for obligations arising from personnel and employee benefits consist mainly of provisions for jubilee expenses, service units, vacation backlogs 

and flexitime credits, as well as for age-related part-time service. 

Other provisions mainly comprise provisions for obligations from dismantling operations, for outstanding invoices, guarantee obligations, sales-related 

bonuses and discounts as well as for impending losses from uncompleted transactions. 

In addition, there are a number of discernible risks and uncertain obligations. They mainly relate to costs for inherited contamination, follow-up costs 

and litigation risks. 


The provisions have developed as follows: 




Obligations from personnel 

and employee benefits 


Status on 

01/01/2011 Transfer Reclassification 

58.139 

4.371 


– 2.543 

Compound 

interest Utilisation Release 

1.212 

6.310 

0.033 

Currency 

differences 

– 0.004 

145 

Status on 


Other provisions 6.233 13.520 – 0.305 2.097 0.456 0.324 0.003 20.768 

64.372 17.891 – 2.848 3.309 6.766 0.357 – 0.001 75.600 

Current provisions 



50.799 

49.167 

– 2.740 

Other provisions 55.488 44.797 – 1.613 — 27.963 7.156 – 0.028 63.525 

106.287 93.964 – 4.353 — 69.250 10.119 – 0.049 116.480 


2010 




Status on 

01/01/2010 Transfer Reclassification 

61.075 

2.626 

0.201 

— 

41.287 

2.963 

Compound 

interest Utilisation Release 

1.455 

7.195 

0.026 

– 0.021 

Currency 

differences 

0.003 

54.832 

52.955 

Status on 

31/12/2010 

Other provisions 5.723 1.054 – 0.096 0.034 0.192 0.291 0.001 6.233 

66.798 3.680 0.105 1.489 7.387 0.317 0.004 64.372 

Current provisions 



42.127 

43.295 

– 0.242 

Other provisions 56.092 40.540 0.137 — 31.980 9.291 – 0.010 55.488 

98.219 83.835 – 0.105 — 64.303 11.352 – 0.007 106.287 

— 

32.323 

2.061 

0.003 

58.139 

50.799


(C.14.) Financial liabilities 

Financial liabilities include all interests-bearing obligations of the BayWa Group effective on the reporting date. These liabilities break down as follows. 



Financial liabilities 


Residual term 

of up to one year 

Residual term 

of one to five years 

Residual term of 

more than five years Total 

Due to banks 450.835 312.565 252.561 1,015.961 

Commercial Paper 130.000 — — 130.000 

Profit-sharing capital 1.691 — — 1.691 


2010 

Financial liabilities 

582.526 312.565 252.561 1,147.652 

Residual term 


Residual term 




Due to banks 486.684 169.477 99.600 755.761 

Commercial Paper 49.300 — — 49.300 

Profit-sharing capital 1.691 — — 1.691 

537.675 169.477 99.600 806.752 

The BayWa Group finances itself through credit lines, on the one hand, and short-term loans for which no collateral is furnished, on the other. In 

individual cases, long-term bank loans are used. On 12 December 2011, BayWa placed a bonded loan in a nominal amount of €218.500 million 

consisting of four bullet tranches. In addition, on 1 October 2010, BayWa AG placed two bonded loans in a total nominal amount of €200.000 million 

consisting of two bullet tranches. The bonded loans serve to diversify the Group’s financing and are reported under liabilities due to banks. 


Nominal amount of loan 

in € million Maturity Interest 

Bonded loan – 5-year fixed 77.500 12/12/2016 3.20% 

Bonded loan – 5-year variable 33.000 12/12/2016 6-month Euribor plus 1.20% 

Bonded loan – 7-year fixed 67.500 12/12/2018 3.77% 


2010 

Nominal amount of loan 

in € million Maturity Interest 



The bonded loans were reported at the fair value corresponding to the nominal value at the time when they were recognised, less transaction costs. 

The bonded loans are measured at amortised cost.


Of the current liabilities due to banks, loans of €432.448 million are due at any time. The difference of €18.387 million relates to the short-term 

portion of non-current liabilities due to banks. The average effective interest rate on short-term loans is currently 1.8% (2010: 1.8%) a year. 

Of the Commercial Paper Programme launched by BayWa AG in a volume totalling €300.000 million, €130.000 million in commercial paper with a 

term of 31 days and an average weighted effective interest rate of 1.85% had been issued by the end of the reporting period. 

Of the liabilities due to banks, €3.207 million at Group level (2010: €13.962 million) have been secured by a charge over property. 

The fair value of the financial liabilities does not diverge materially from the book values disclosed. 

The dormant equity holdings of four Austrian warehouses (“Lagerhäuser”) in RWA AG is disclosed as participatory capital under financial liabilities. 

The dormant equity holdings each have an indefinite term which can be terminated by the warehouses at any time. Interest is charged on the dormant 

equity holdings; the interest rate is fixed contractually. Owing to the short-term nature of these holdings due to termination being possible at any time, 

the fair value is the book value. 

(C.15.) Finance lease obligations 

The liabilities-side net present values of future leasing instalments are carried under the finance lease obligations (see also Note C.2.). 




Residual term 


Residual term 


147 



Obligations from finance leasing 1.750 5.022 0.267 7.039 


2010 

Residual term 


Residual term 




Obligations from finance leasing 0.558 2.157 — 2.715


(C.16.) Trade payables and liabilities from inter-group business relationships 

Non-current liabilities are disclosed in the balance sheet in their amortised repayment amounts. Differences between the historical costs and the 

repayment amount are taken account of using the effective yield method. Current liabilities are recognised in their repayment or settlement amount. 

Liabilities due to affiliated companies and companies in which a participating interest is held comprise not only trade payables but also liabilities arising 

from financing. 


As per 31/12/2011 


Residual term 


Residual term 




Trade payables 584.576 0.012 — 584.588 

Liabilities due to affiliated companies 13.161 — — 13.161 

Liabilities due to companies in which a participating interest is held 67.513 — — 67.513 

Bills and notes payable 0.037 — — 0.037 

Payments received on orders 84.861 — — 84.861 

750.148 0.012 — 750.160 


As per 31/12/2010 

Residual term 


Residual term 




Trade payables 456.741 1.314 — 458.055 

Liabilities due to affiliated companies 8.602 — — 8.602 

Liabilities due to companies in which a participating interest is held 36.327 — 43.948 80.275 

Bills and notes payable 0.142 — — 0.142 

Payments received on orders 47.683 — — 47.683 

549.495 1.314 43.948 594.757 

Trade payables include claims of customers from customer loyalty programmes of BayWa AG and other Group companies. Under IFRIC 13 loyalty 

credits awarded by an entity are to be disclosed as definable components of a multiple element arrangement (main transaction and premium) within 

the meaning of IAS 18.13. At BayWa AG, the BayWa Card is in use. With each purchase, customers can collect bonus points which can then be 

redeemed at BayWa outlets. For each bonus points collected one cent is credited to the customer. In the financial year 2011, there was an amount of 

€1.570 million (2010: €0.919 million) in bonus points not yet redeemed.

(C.17.) Other liabilities 

The table below shows a breakdown of other liabilities: 





Residual term 


Residual term 


149 



Social security 5.516 — — 5.516 

Allowances received 0.308 0.087 0.300 0.695 

Other liabilities including accruals 73.318 11.888 0.815 86.021 

79.142 11.975 1.115 92.232 


As per 31/12/2010 

Residual term 


Residual term 




Social security 2.392 — — 2.392 

Allowances received 0.105 0.580 0.604 1.289 

Other liabilities including accruals 70.235 0.744 0.356 71.335 

72.732 1.324 0.960 75.016 

The fair value of the items disclosed does not diverge materially from the book values disclosed. 

In the case of public subventions, these are amounts granted by public-sector authorities in connection with new investments. These subventions 

are released over the probable useful life of the respective asset with the concurrent effect on income. In the financial year, the release came to 

€0.104 million (2010: €0.177 million) which is disclosed under other operating income. 

(C.18.) Deferred tax liabilities 

The deferral of tax on the liabilities side has been carried out according to the temporary concept under IAS 12 using the valid or official and known tax 

rate as per the reporting date. Further explanations on deferred tax can be found under Note D.8. “Income tax”.


(C.19.) Liabilities from non-current assets held for sale/disposal groups 

Liabilities from non-current assets held for sale/disposal groups of €82.242 million (2010: €33.007 million) are mainly trade payables and financial 

liabilities which were reclassified in connection with the Ybbstaler fruit juice group held for sale. Moreover, liabilities (largely personnel obligations) in the 

context of transferring 56 DIY and garden centres of BayWa AG into BayWa Bau- & Gartenmärkte GmbH & Co. KG, are disclosed under this item. 

The liabilities from non-current assets held for sale/disposal groups break down as follows: 





Segment 


Segment Total 


Pension provisions 4.721 — 4.721 

Other non-current provisions 0.748 1.811 2.559 

Other liabilities — 0.255 0.255 


5.469 3.420 8.889 


Other current provisions 2.413 2.267 4.680 

Financial liabilities — 51.416 51.416 

Trade payables and liabilities from inter-group business relationships — 5.638 5.638 

Tax liabilities — 0.057 0.057 

Other liabilities — 11.562 11.562 

2.413 70.940 73.353 

Liabilities from non-current assets held for sale/disposal groups 7.882 74.360 82.242 


2010 

Energy 

Segment Total 


Other non-current provisions 1.215 1.215 

Financial liabilities 31.792 31.792 

33.006 33.006 

Liabilities from non-current assets held for sale/disposal groups 33.006 33.006

(C.20.) Contingent liabilities 



Bills and notes payable 4.212 4.402 

(of which to affiliated companies) (–) (–) 

Guarantees 21.381 16.637 

(of which to affiliated companies) (2.585) (–) 

Warranties 85.900 66.251 


Collateral for liabilities of third parties 9.473 12.439 


(C.21.) Other financial obligations 

Along with obligations from rental and leasing agreements (C.2.) disclosed as operate leases, there are the following financial obligations: 


Other financial obligations 

from buyback obligations 15.623 15.700 

from amounts guaranteed for interests in cooperative companies 13.104 13.106 

There are contractual obligations (purchase commitments) of €183.040 million (2010: €118.352 million) for the purchase of property, plant and 

equipment (real estate, vehicles) and inventories. 


151


(C.22.) Financial instruments 

Accounting policies and valuation methods 

Under IAS 32, a financial instrument is an agreement which gives rise simultaneously to a financial asset of one entity and a financial liability or equity 

instrument of another. Initial recognition is carried out at fair value; for subsequent measurements, the financial instruments are allocated to the 

measurement categories defined under IAS 39 and treated accordingly. Financial assets in the BayWa Group are in particular trade receivables and 

financial investments. Financial liabilities regularly constitute a right of repayment in funds or another financial asset. In the BayWa Group these are 

especially liabilities due to banks and trade payables. 

The financial assets cover the following classes: 

Financial assets available for sale (AfS): Financial assets available for sale are primarily financial investments, i.e. participating interests in non- 

consolidated companies, participations and securities. Measurement is carried out at fair value which is based on the stock market price or the market 

price in as much as there is an active market which allows realistic measurement. The majority of assets in this category are not traded in an active 

market. As deriving the fair value using comparable transactions of the respective period was also not possible, measurement at amortised cost was 

used as the best evidence of fair value. Gains and losses not realised are reported in equity under an available-for-sale reserve without effect on 

income. Upon disposal of financial assets, the accumulated gains and losses from subsequent measurements at fair value are recorded in equities 

through profit and loss. If there is evidence of permanent impairment, this is carried out in the income statement through profit and loss. 

Loans and receivables (LaR): After initial recognition, loans and receivables are carried in the balance sheet exclusively at amortised cost. In the 

BayWa Group, they mainly have short residual terms. The book value is thus a reasonable approximation of fair value. Gains and losses are recorded 

directly in the consolidated result when the loans and receivables are charged off or impairment is carried out. 

Financial assets held for trading (FAHfT): Financial assets held for trading are recognised at their fair value. This category also comprises derivative 

financial instruments which do not fulfil the conditions of a hedging instrument. Measurement is based on the market or stock market value. Gains 

and losses from subsequent measurement are recorded through profit and loss. 

The option of recording financial assets at fair value upon their initial recognition was not selected by the BayWa Group. 


The financial liabilities cover the following classes: 


Financial liabilities measured at amortised cost (FLAC): Financial liabilities measured at residual book value are measured at amortised cost after 

their initial recognition. They mainly have short residual terms. The book value is thus a reasonable approximation of fair value. Gains and losses are 

recorded directly in the consolidated result. 

Financial liabilities held for trading (FLHfT): Derivative financial instruments which are not included in an effective hedging strategy under IAS 39 and 

whose market value from subsequent measurement has resulted in a negative attributable fair value are to be disclosed under this category. Market 

changes are recorded in the consolidated result through profit and loss. Measurement is made at market/stock market value. 

In addition, the BayWa Group also uses fair value hedges to hedge inventories through commodities futures. Changes in the market value of derivative 

financial instruments and their attributable underlyings are recorded through profit and loss. 

The option of recording financial liabilities at fair value upon their initial recognition was not selected by the BayWa Group. 

Derivative financial instruments are used in the BayWa Group in particular to hedge the interest rate and currency risks arising from operating activities. 

Caps, swaps and commodities futures are the main instruments used. Derivative financial instruments are carried at fair value upon their initial 

recognition and on each subsequent reporting date. The fair value corresponds to the positive or negative market value. 

The BayWa Group conducts its business mainly in the euro area. Accordingly, foreign currencies are of secondary importance within the Group. The 

business activities of the consolidated American companies and one UK-based company pertain almost exclusively to their respective currency areas. 

Similarly, the business activities of the consolidated Hungarian companies are restricted almost without exception to the Hungarian currency area. A 

few transactions in foreign currencies are carried out in agricultural trading, and purchasing activities predominantly in the common currency. If foreign 

currency futures are concluded, they are hedged by the respective forward exchange transactions. As there is no clear hedging relationship in respect 

of these transactions, the market values are ascertained on the basis of market information available on the reporting date. As a 31 December 2011, 

there were forward exchange transactions denominated in US dollars, pound sterling, the Czech koruna, the Hungarian forint, Polish zloty and Serbian 

dinar. 

In the context of financial management, the Group is active on the money market primarily in borrowing short-term term deposits. The procuring of 

funds is carried out on the regional market of the respective operating unit. The BayWa Group is therefore exposed to interest rate risk in particular. 

The group counteracts this risk by using derivatives of financial instruments, in the main interest rate swaps and caps. Volume-related hedging always 

comprises only a base amount of the borrowed funds. As there is no clear hedging relationship with an identifiable underlying, the transaction is not a 

hedging deal within the meaning of IAS 39. As a result, interest rate derivatives are marked to market separately on the reporting date. Market values 

are ascertained on the basis of market information available on the reporting date. 


153


Book and fair values of financial instruments 

The table below shows the transition between the balance sheet positions and the IFRS 7 classes and IAS 39 measurement categories, broken down 

into subsequent “measurement at amortised cost” and “measurement at fair value”. The book values of the measurement categories are then ultimately 

shown against fair value for the purpose of comparison. The fair value of a financial instrument is the price at which a third party would assume 

the rights and obligations associated with this financial instrument. 



IAS 39 

category or 

IFRS 7 class 


Book value 


Measurement subsequent to initial recognition 

Amortised 

cost 

Fair value 

without 

effect on 

income 

Fair value 

through profit 

and loss 

Not IFRS 7 

class 

Fair value on 


Non-current financial assets 

Participating interests recognised at equity AfS 16.533 16.533 — — — 16.533 

Other financial assets AfS 179.936 139.523 40.413 — — 179.936 

Other financial assets LaR 30.659 30.659 — — — 30.659 

Other receivables and other assets 

Trade receivables 


Other assets 

LaR 

LaR 

2.440 

16.225 

Current financial assets 

Securities FAHfT 1.811 — — 1.811 — 1.811 


Trade receivables and receivables 

from inter-group business relationships 


Other assets 


Derivatives 

LaR 

LaR 

FAHfT 

576.395 

164.922 

Cash and cash equivalents LaR 86.997 86.997 — — — 86.997 

Non-current financial liabilities 

Financial liabilities FLAC 565.126 565.126 — — — 565.126 

Liabilities from finance leasing FLAC 5.289 5.289 — — — 5.289 

Trade payables and liabilities from inter-group 

business relationships 

FLAC 

1.195 

0.012 

2.440 

15.832 

576.395 

160.919 

— 

0.012 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

1.195 

— 

— 

0.393 

— 

4.003 

— 

2.440 

16.225 

576.395 

164.922 

1.195 

— 0.012 

Other liabilities FLAC 13.090 12.256 — — 0.834 13.090 

Derivatives FLHfT 3.698 — — 3.698 — 3.698 

Current financial liabilities 





FLAC 

750.148 

750.148 

— 

— 

— 750.148 



Aggregated by IAS 39 category/IFRS 7 class 

Assets available for sale AfS 196.469 156.056 40.413 — — 196.469 

Loans and receivables LaR 877.638 873.242 — — 4.396 877.638 

Financial assets held for trading FAHfT 3.006 — — 3.006 — 3.006 

Financial liabilities measured at amortised cost FLAC 1,997.083 1,992.569 — — 4.514 1,997.083 

Financial liabilities held for trading FLHfT 5.896 — — 5.896 — 5.896


As per 31/12/2010 


IAS 39 

category or 

IFRS 7 class 


Book value 

31/12/2010 

Measurement subsequent to initial recognition 

Amortised 

cost 

Fair value 

without 

effect on 

income 

Fair value 

through profit 

and loss 

Not IFRS 7 

class 

155 

Fair value on 

31/12/2010 

Non-current financial assets 

Participating interests recognised at equity AfS 45.733 45.733 — — — 45.733 

Other financial assets AfS 174.246 135.346 38.900 — — 174.246 

Other financial assets LaR 38.361 38.361 — — — 38.361 


Trade receivables 


Other assets 

LaR 

LaR 

2.156 

14.654 

Current financial assets 

Securities FAHfT 1.841 — — 1.841 — 1.841 


Trade receivables and receivables 

from inter-group business relationships 


Other assets 


Derivatives 

LaR 

LaR 

FAHfT 

465.402 

195.235 

Cash and cash equivalents LaR 28.208 28.208 — — — 28.208 

Non-current financial liabilities 





FLAC 

2.304 

45.262 



Current financial liabilities 





FLAC 

549.495 

2.156 

14.276 

465.402 

190.683 

— 

45.262 

549.495 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

2.304 

— 

— 

— 

0.378 

— 

4.552 

— 

— 

2.156 

14.654 

465.402 

195.235 

2.304 

45.262 

— 549.495 



Aggregated by IAS 39 category/IFRS 7 class 

Assets available for sale AfS 219.979 181.079 38.900 — — 219.979 

Loans and receivables LaR 744.016 739.086 — — 4.930 744.016 

Financial assets held for trading FAHfT 4.145 — — 4.145 — 4.145 

Financial liabilities measured at amortised cost FLAC 1,479.240 1,474.437 — — 4.803 1,479.240 

Financial liabilities held for trading FLHfT 3.917 — — 3.917 — 3.917


Cash and cash equivalents, trade receivables and receivables from inter-group business relationships and other assets generally have short residual 

terms. Their book values on the reporting date therefore approximate to fair value. 

Trade payables and liabilities from inter-group business relationships generally have short residual terms. Their book values approximate to fair value. 

Hierarchy of financial assets and liabilities measured at fair value 

In order to take account of the material factors which form part of the measurement of financial assets and liabilities at fair value, the financial assets 

and liabilities of the BayWa Group have been divided up into a hierarchy of three levels. 

The levels of the fair value hierarchy and their application to the assets and liabilities are described below: 

Level 1: Prices are identical to those quoted in active markets for identical assets or liabilities. 

Level 2: Input factors which are not synonymous with the prices assumed at Level I but which can be observed either directly (i.e. as prices) or 

indirectly (i.e. derived from prices) for the respective asset or liability. 

Level 3: Factors not based on observable market data for the measurement of the asset or a liability (non-observable input factors). 



The table below shows the financial assets and liabilities measured at fair value assigned to the three levels of the fair value hierarchy: 

Hierarchical assignment of the financial assets and liabilities measured at fair value in the financial year 2011 

In € million Level 1 Level 2 Level 3 Total 

Financial assets measured at fair value 

Derivative financial instruments — 1.195 — 1.195 

Securities FAHfT 1.811 — — 1.811 

Financial assets AfS 12.097 — 28.316 40.413 

Sum total of financial assets 13.908 1.195 28.316 43.419 

Financial liabilities measured at fair value 


Sum total of financial liabilities — 5.896 — 5.896 

Hierarchical assignment of the financial assets and liabilities measured at fair value in the financial year 2010 

In € million Level 1 Level 2 Level 3 Total 

Financial assets measured at fair value 


Securities FAHfT 1.841 — — 1.841 

Financial assets AfS 16.633 — 22.267 38.900 

Sum total of financial assets 18.474 2.304 22.267 43.045 

Financial liabilities measured at fair value 


Sum total of financial liabilities — 3.917 — 3.917 


157


Net gains and losses 

The following table shows net gains/losses from financial instruments reported in the income statement. 

2011 Assets 

Category FAHfT AfS LaR FLHfT FLAC 


Shareholders’ equity 

and liabilities Total Transition 

No 

allocation Not an FI 

Financial 

instrument 

1 Net gain/loss in the financial result 

Equity valuation of participating interests — 1.386 — — — — 1.386 — 1.386 

Income from participating interests — 4.528 — — — — 4.528 — 4.528 

Expenses from participating interests — – 1.171 — — — — – 1.171 — – 1.171 

Result from disposals — 0.682 — — — — 0.682 — 0.682 

Result of participating interests — 4.039 — — — — 4.039 — 4.039 

Income from other financial assets — 7.099 — — — — 7.099 — 7.099 

Result from disposals — – 0.480 — — — — – 0.480 — – 0.480 

Result of other financial assets — 6.619 — — — — 6.619 — 6.619 

Interest income — — 4.126 — — — 4.126 — 4.126 

Interest income from fair value measurement — — — 0.450 — — 0.450 — 0.450 

Sum total of interest income — — 4.126 0.450 — — 4.576 — 4.576 

Interest expenses — — — — – 34.705 — – 34.705 — – 34.705 

Interest portion in personnel provisions — — — — — — — – 23.111 — 

Interest expenses from fair value measurement — — — – 0.485 — — – 0.485 — – 0.485 

Sum total of interest expenses — — — – 0.485 – 34.705 — – 35.190 – 23.111 – 35.190 

Net interest — — 4.126 – 0.035 – 34.705 — – 30.614 – 23.111 – 30.614 

Sum total net gain/loss — 12.044 4.126 – 0.035 – 34.705 — – 18.570 – 23.111 – 18.570 

Financial result – 41.681 

2 Net gain/loss in the operating result 

Income from hedging transactions 4.061 — — — — — 4.061 

Income from the receipt of written-off 

receivables/release of receivables 

value adjustments 

— 

Expenses from hedging transactions – 4.231 — — — — — – 4.231 

Value adjustments/write-downs of receivables — — – 16.237 — — — – 16.237 

Sum total net gain/loss – 0.170 — – 13.341 — — — – 13.511 

3 Net gain/loss in equity 

Changes in the fair value from the 

market valuation of securities 

— 

— 

– 5.189 

Currency translation — — — — — – 1.946 – 1.946 

Sum total net gain/loss — – 5.189 — — — – 1.946 – 7.135 

2.896 

— 

— 

— 

— 

— 

— 

— 

2.896 

– 5.189

2010 Assets 


Category FAHfT AfS LaR FLHfT FLAC 


Shareholders’ equity 

and liabilities Total Transition 

No 

allocation Not an FI 

159 

Financial 

instrument 

1 Net gain/loss in the financial result 

Equity valuation of participating interests — 7.194 — — — — 7.194 — 7.194 

Income from participating interests — 3.663 — — — — 3.663 — 3.663 

Expenses from participating interests — – 0.446 — — — — – 0.446 — – 0.446 

Result from disposals — 4.494 — — — — 4.494 — 4.494 

Result of participating interests — 7.711 — — — — 7.711 — 7.711 

Income from other financial assets — 7.014 — — — — 7.014 — 7.014 

Result from disposals — – 1.901 — — — — – 1.901 — – 1.901 

Result of other financial assets — 5.113 — — — — 5.113 — 5.113 

Interest income — — 3.286 — — — 3.286 — 3.286 

Interest income from fair value measurement — — — 0.188 — — 0.188 — 0.188 

Sum total of interest income — — 3.286 0.188 — — 3.474 — 3.474 

Interest expenses — — — — – 20.379 — – 20.379 — – 20.379 

Interest portion in personnel provisions — — — — — — — – 24.669 — 

Interest expenses from fair value measurement — — — – 0.143 — — – 0.143 — – 0.143 

Sum total of interest expenses — — — – 0.143 – 20.379 — – 20.522 – 24.669 – 20.522 

Net interest — — 3.286 0.045 – 20.379 — – 17.048 – 24.669 – 17.048 

Sum total net gain/loss — 20.018 3.286 0.045 – 20.379 — 2.970 – 24.669 2.970 

Financial result – 21.699 

2 Net gain/loss in the operating result 

Income from hedging transactions 3.225 — — — — — 3.225 

Income from the receipt of written-off 

receivables/release of receivables 

value adjustments 

— 

Expenses from hedging transactions – 3.482 — — — — — – 3.482 

Value adjustments/write-downs of receivables — — – 7.369 — — — – 7.369 

Sum total net gain/loss – 0.257 — – 1.967 — — — – 2.224 

3 Net gain/loss in equity 

Changes in the fair value from the 

market valuation of securities 

— 

— 

–1.384 

Currency translation — — — — — 0.732 0.732 

Sum total net gain/loss — – 1.384 — — — 0.732 – 0.652 

Income from participating interests includes dividend payments. 

5.402 

— 

— 

— 

— 

— 

— 

— 

5.402 

– 1.384


The following table shows an analysis of the maturity dates of undiscounted financial liabilities by IFRS 7 class. 




Residual term 


Residual term 




Financial liabilities measured at amortised cost (FLAC) 1,433.870 391.616 272.906 2,098.392 

Financial liabilities held for trading (FLHfT) 2.198 3.698 — 5.896 


2010 

1,436.068 395.314 272.906 2,104.288 

Residual term 


Residual term 




Financial liabilities measured at amortised cost (FLAC) 1,172.973 204.928 152.789 1,530.690 

Financial liabilities held for trading (FLHfT) 3.748 0.169 — 3.917 

1,176.721 205.097 152.789 1,534.607 

The following schedule of maturities shows the distribution of the forecast cash flows of the contractually agreed interest and redemption payments in 

the IFRS 7 class “Liabilities measured amortised cost” (FLAC) as per 31 December 2011. 

In € million Total until 6/2012 7 – 12/2012 2013 – 2016 > 2016 

Interest portion 101.309 6.838 15.341 59.777 19.353 

Redemption portion 1,997.083 776.244 635.447 331.839 253.553 

Total 2,098.392 783.082 650.788 391.616 272.906 

Information on derivative financial instruments 

Derivatives in the context of fair value hedges for commodities futures are used in the BayWa Group as hedging trans actions under IAS 39 as well as 

hedging transactions for interest rate and currency risks in the form of caps and swaps. The fair values are shown in the table below. In the reporting 

year, losses of €4.231 million and gains of €4.061 million were recorded in the calculation of the fair value in the income statement under other operating 

expenses and other operating income respectively.


The following table shows the maturities of the market values for the derivative financial instruments of the financial year. 




Total 

Residual term 


Market value 

Residual term 


161 


more than five years 

Assets 

Interest rate hedging transactions 0.601 0.601 — — 

Commodity and currency hedging transactions 0.594 0.594 — — 

1.195 1.195 — — 


Interest rate hedging transactions 3.803 0.105 3.698 — 


5.896 2.198 3.698 — 


31/12/2010 

Total 

Residual term 


Market value 

Residual term 



more than five years 

Assets 

Interest rate hedging transactions 1.092 1.092 — — 


2.304 2.304 — — 


Interest rate hedging transactions 0.169 — 0.169 — 


3.917 3.748 0.169 — 

The market value is ascertained on the basis of market prices quoted on the reporting date without netting off against counter-developments from 

possible underlyings. The market value corresponds to the amount which the Group would have to pay or would receive if the hedging transaction 

were closed out prior to the due date.


(C.23.) Risk Management 

Opportunity and risk management 

The policy of the BayWa Group is geared toward weighing up the opportunities against the risks of entrepreneurship in a responsible way. The 

management of opportunities and risks is an ongoing task of entrepreneurial activity designed to ensure the long-term success of the Group. This 

enables the BayWa Group to innovate, secure and improve what is already in place. The management of opportunities and risks is closely aligned 

to the BayWa Groups long-term strategy and medium-term planning. The Group’s decentralised regional organisation and management structure 

enables it to identify trends, requirements, and the opportunities and risk potential of frequently fragmented markets at an early stage, analyse them 

and take action which is both flexible and market oriented. Moreover, the systematically intense screening of the market and of peer competitors is 

carried out with a view to identifying opportunities and risks. This is flanked by ongoing communication and the goal-oriented exchange of information 

between the individual parts of the Group, which leverages additional opportunities and synergy potential. 

Principles of opportunity and risk management 

The BayWa Group exploits opportunities which arise in the context of its business activities but, at the same time, also enters into entrepreneurial 

risks. The identification of entrepreneurial opportunities, the safeguarding of the assets and the enhancing of enterprise value therefore necessitate an 

opportunity and risk management system. 

The principles underlying the system set in place within the BayWa Group to identify and monitor risks specific to the business have been described 

in a risk management manual approved by the Board of Management of BayWa AG. In addition, the Internal Audit Department regularly audits the 

internal risk management system which supports the processes. ISO certifications for the standardisation of workflows and for risk avoidance, and the 

concluding of insurance policies supplement the Group’s management of risk. 

Moreover, the BayWa Group has established binding goals and a code of conduct in its corporate policy which have been implemented throughout 

the Group. They regulate the individual employees’ actions when applying the corporate values as well as their fair and responsible conduct towards 

suppliers, customers and colleagues. 

Opportunity and risk management within the BayWa Group 

In the BayWa Group risk management is an integral component of the planning and management and control processes. The Group’s strategy 

aims, on the one hand, to make optimum use of opportunities while, on the other, identifying and limiting business-related risks. A comprehensive 

risk management system records and monitors both the development of the Group and any existing weak points on an ongoing basis. The risk 

management system covers all segments and is included as a key component of reporting. A particularly important task of risk management is to 

guarantee that risks to the Group as a going concern are identified and kept to a minimum. This enables the management of Group companies to 

react swiftly and effectively. All units have risk officers and risk reporting officers who are responsible for implementing the reporting process. 

A cornerstone of the risk management system are the risk reports which are regularly prepared by the operating units. These reports are subject 

to evaluation by the Board of Management and by the heads of the business units. The systematic development of existing and new systems with 

a built-in warning component makes an indispensable contribution to strengthening and consistently building up a groupwide opportunity and risk 

culture. 

A key component and, at the same time, an evolution of the opportunity and risk management is the “Risk Board” which was implemented in the 

financial year 2009. Presided over by the Chief Executive Officer, the Risk Board, which consists of operations managers and support staff, meets 

to discuss and assess operational opportunities and risks on an ongoing basis. Minuted meetings are used to develop an understanding of the 

opportunities and risks and form the basis of the risk measurement applied to operational decisions. 

The reporting process classifies risks and opportunities into categories, reports on these and estimates their probable occurrence and potential 

financial impact. The system is based on individual observations, supported by the relevant management processes, and forms an integral part of core 

activities. It starts with strategic planning and proceeds through to procurement, sales and distribution and, finally, to the management of receivables. 

As an extension of the planning process in the segments, procurement and sales organisations and centralised functions, the opportunity and risk 

management system serves to detect and assess potential divergences from expected developments. In addition to identifying and assessing key 

developments influencing business, this system facilitates the prioritisation and implementation of activities. As a result, the BayWa Group can make 

better use of the opportunities while reducing the risks. 



Macroeconomic opportunities and risks 

General economic factors have an influence on consumer behaviour and investment patterns in the core markets of the Group. However, these 

environmental factors exert less of an impact on the BayWa Group than on other companies. The BayWa Group’s business model is primarily geared 

to satisfying fundamental human requirements, such as the need for food, shelter, mobility and the supply of energy. Accordingly, the impact of 

cyclical swings is likely to be less strong than in other sectors. At the same time, a company as well positioned as the BayWa Group is even able to 

turn certain opportunities arising in times of crisis to its advantage through, for instance, the identification and acquisition of takeover candidates with 

a view to building up or expanding existing or new areas of business. The BayWa Group is, however, unable to fully decouple from severe setbacks to 

international economic development such as are to be feared from the consequences of an escalation in the ongoing euro debt crisis. 

Sector and Group-specific opportunities and risks 

Changes in the political framework conditions such as, for example, changes in the subsidies of agricultural products or tax-related government 

subsidies of energy carriers, as well as globalised and volatile markets, harbour risks. At the same time, however, they open up new prospects. 

Extreme weather conditions can have a direct impact on offerings, pricing and trading in agricultural produce and also downstream on the operating 

resources business. Global climate changes also have a long-term effect on agriculture. The global demand for agricultural products, particularly grain, 

continues to grow. 

This may give rise to a sustained price uptrend. The development of income in the agriculture sector filters through directly to the sale of high-end 

agricultural machinery. Political and economic factors exert the main influence on demand in the construction sector. Political factors of influence 

are, for instance, special depreciation for listed buildings and measures to promote energy efficiency. At the same time, the ageing housing stock 

will encourage growing demand for modernisation and renovation. In the energy business, renewable energy carriers are particularly affected by 

changes in promotion measures. After the 15% reduction in photovoltaic feed-in tariffs at the beginning of the year, other curtailments in 2012 are 

under discussion, apart from another 15% cut scheduled for mid-year. Against this backdrop, securing revenue and profit is facilitated through risk 

diversification in markets which are increasingly dependent on subsidy policies. 

Price opportunities and risks 

The BayWa Group trades in merchandise, such as grain, fertilisers and mineral oil, which displays a very high price volatility, especially in its Agriculture 

and Energy segments. The warehousing of the merchandise, the signing of delivery contracts and the acquisition of merchandise in the future means 

that BayWa is also exposed to the risk of prices fluctuating. Whereas the risk inherent in mineral oils is relatively low due to the BayWa Group’s pure 

distribution function, fluctuations in the price of grain and fertilisers may incur greater risks, also owing to their warehousing, if there is no maturity 

matching in the agreements on the buying and selling of merchandise. If there are no hedging transactions existing at the time when agreements 

are signed, the ensuing risk is monitored on an ongoing basis and controlled by the respective executive bodies. Whenever necessary, appropriate 

measures to limit risk are initiated. The BayWa Group also operates as a project developer in the field of renewable energies. This business harbours 

a risk that, for instance, the planning and building of solar power plants, wind farms and biogas plants are delayed and that they may be connected to 

the grid later than originally planned. In such cases, if the deadline for the further reduction in feed-in tariffs is not adhered to there is a price risk, as the 

plant can no longer be sold at the price originally envisaged because the economic parameters have changed. 

Currency opportunities and risks 

The BayWa Group’s activities are largely located in the eurozone. If foreign currency positions arise from goods and services transactions these are 

always hedged without delay. Payment obligations from company acquisitions denominated in a foreign currency are hedged at the time when they 

arise. Speculative borrowing or investing bonds denominated in foreign currencies is prohibited. 

Share price opportunities and risks 

The BayWa Group’s investment portfolio comprises direct and indirect investments in listed companies. Equity investments are continuously 

monitored on the basis of their current market values. 


163


Interest rate opportunities and risks 

Interest rate risk positions arise from the Group’s floating-rate financing activities, especially from the issuing of short-term commercial paper and 

short-term borrowing, as well as from the bonded loans placed in the reporting year. Short-term debt is used mainly to finance the similarly short-term 

working capital. To reduce the interest rate risk, BayWa Group companies use derivatives instruments in the form of interest rate caps and swaps. The 

BayWa Group’s financing structure with its matching maturities ensures that interest-related opportunities are reflected within the Group. 

The bonded loan issued in 2011 was offered with a floating and a variable coupon, which results in natural hedging. 

Interest rate risk analysis 

In the financial year, the average interest rate stood at around 2.0% (2010: 1.8%). A change in this interest rate of plus 1.0% to 3% would cause 

interest expenses to rise by €13.001 million, whereas the reverse, i.e. a change in this interest rate of minus 1.0% to 1.0% would lower interest 

expenses by €13.001 million. 

Regulatory and legal opportunities and risks 

Changes in the regulatory environment can affect the Group’s performance. One such example is government intervention in the general framework 

for the agricultural industry. Negative impacts emanate from the reduction or abolition of funding measures. Conversely, new regulatory and legislative 

developments influencing bioenergy can also result in opportunities. In the construction sector, changes to building or fiscal regulations may also have 

an impact on the development of business. 

The companies of the Group are exposed to a number of risks in connection with litigation in which they are currently involved or may be involved 

in the future. Law suits come about in the course of normal business activities, in particular in relation to the assertion of claims from services and 

deliveries which are not up to standard or from payment disputes. The companies of the BayWa Group form reserves for the event of such legal 

disputes if the occurrence of an obligation event is probable and the amount can be adequately estimated. In the individual case, actual utilisation may 

exceed the reserve amount. 

Credit risks 

As part of its entrepreneurial activities, the BayWa Group has an important function as a source of finance for its agricultural trading partners. In 

the context of so-called cultivation contracts, the Group is exposed to a financing risk arising from the upfront financing of agricultural resources and 

equipment, the repayment of which is made through acquiring and selling the harvest. Moreover, BayWa grants financing to commercial customers 

particularly in the construction sector in the form of payment terms of a considerable scope. Beyond this, there are the customary default risks 

inherent in trade receivables. Risks are kept to a minimum by way of an extensive debt monitoring system which spans all business units. To this end, 

credit limits are defined through a documented process of approval and monitored on an ongoing basis. 

Credit risks are constituted by the economic loss of a financial asset brought about by default on a contractual payment by a contractual partner and 

the deterioration of his credit standing, together with the danger of concentration on only a few contractual partners (risk clusters). Credit risks may 

arise in the IFRS 7 classes of financial assets “available for sale” (AfS), “loans and receivables” (LaR) and “financial assets held for trading” (FAHfT). 

Financial assets available for sale (AfS): This class mainly comprises shares in affiliated companies and participating investments and securities. These 

financial assets are not subject to further credit risk beyond the value adjustments made to date in this class. The maximum credit risk exposure on the 

reporting date corresponds to the value of this class. The BayWa Group does not consider this to be significant. 

Loans and receivables (LaR): As part of its entrepreneurial activities, the BayWa Group has an important function as a source of finance for its 

agricultural trading partners. In the context of so-called cultivation contracts, the Group enters into a financing risk arising from the upfront financing 

of agricultural equipment and resources. Settlement is effected by way of buying up and selling the harvest. An extensive debt monitoring system 

ensures that risks are kept to a minimum in this business, as well as for other segments of the Group. This is performed through establishing and 

consistently monitoring credit limits, flanked by a documented approval procedure. Value adjustments are carried out on the residual risk of the trade 

receivables. Cash and bank deposits with short-term residual maturities also belong to this category. There are no credit risks. 



There is currently no discernible concentration of default risk from business relationships with individual debtors or groups of debtors. The maximum 

credit risk exposure on the reporting date corresponds to the value of this class. 

Financial assets held for trading (FAHfT): This category covers derivative financial instruments which are held exclusively in the BayWa Group for 

hedging purposes. The contractual partners of derivative financial instruments are mainly banks with international operations which have been given a 

good credit rating by an external rating agency. In addition, this class of assets comprises a low volume of securities. There are currently no payments 

overdue or value adjustments for default in this class. 

Liquidity risks 

The liquidity risk is the risk that the BayWa Group may not – or only to a limited extent – be able to fulfil its financial obligations. In the reporting 

year, for instance, market-price-induced higher levels of funds committed to inventories and receivables portfolios were compensated by greater 

utilisation of external sources of finance. In the BayWa Group, funds are generated by operations and by borrowing from external financial institutions. 

In addition, financing instruments, such as multi-currency commercial paper programmes or asset-backed securitisation, are used as well as bonded 

loans. Existing credit lines are therefore measured to an extent deemed sufficient to guarantee business performance at all times – even in the event 

of growing volume. The financing structure thus serves to cover the pronounced seasonality of business activities. Owing to the diversification of the 

sources of financing, the BayWa Group does not currently have any risk clusters in liquidity. 

The placing of another bonded loan in 2011 also contributed to diversifying the maturity profile. 

Rating of the BayWa Group 

The banking sector has awarded BayWa a very positive rating. This achievement is due to the solidity as well as to the long and successful history of 

the company and its high enterprise value, underpinned by assets such as real estate. In 2011, the BayWa Group was able to raise its credit facilities. 

In the fourth quarter, the BayWa Group took advantage of the market environment and issued another bonded loan, which widened its financial scope 

and smoothed the maturity profile. For reasons of cost effectiveness, BayWa deliberately dispenses with the use of external ratings. 

Opportunities and risks associated with personnel 

As regards personnel, the BayWa Group competes with other companies for highly qualified managers as well as for skilled and motivated staff. The 

Group continues to require qualified personnel in order to secure its future success. Excessively high employee fluctuation, the brain drain and failure 

to win junior staff loyalty may have a detrimental effect on the Group’s business performance. BayWa counteracts these risks by offering its employees 

extensive training and continuous professional development in order to secure expertise. Management based on trust, the tasking of employees in line 

with their natural talents and abilities, as well as the definition and adherence to our ethical principles create a positive working environment. 

At the same time, the BayWa Group promotes the ongoing vocational training and development of its employees. With more than a thousand trainees, 

the Group ranks among the largest companies offering training specifically in rural areas. BayWa recruits a large majority of its future specialist and 

managerial employees from the ranks of these trainees. Long years of service to the company are testament to the great loyalty shown by BayWa 

personnel to “their” company. This attitude creates stability and continuity and also secures the transfer of expertise down the generations. 


165


IT opportunities and risks 

The use of cutting-edge IT characterises the entire business activity of the BayWa Group. All key business processes are supported by IT and mapped 

using state-of-the-art software solutions. In a trading company with high numbers of employees, having work processes supported electronically is 

imperative. The continuous monitoring and reviewing of processes mapped electronically, however, involves more than the mere implementation of 

new IT components. It is always accompanied by an optimisation of process workflows, as a result of which opportunities in the form of energy and 

cost savings potential can be identified and realised. At the same time, the risk inherent in the system rises in tandem with the growing complexity 

and dependency on the availability and reliability of the IT systems. 

To realise the opportunities and minimise the risks, the IT competence of the BayWa Group is kept at a consistently high level. The resources are 

combined under RI-Solution GmbH, a company belonging to the Group which provides the Group companies with IT services to the highest standard. 

Extensive precautionary measures such as firewalls, virus protection updated on a daily basis, disaster recovery plans and training in data protection 

serve to safeguard data processing. Segregated in organisational terms, a data protection officer monitors compliance with security and data 

protection standards. 

Assessment of the opportunity and risk situation by Group management 

An overall assessment of the current opportunity and risk situation shows that there are no risks which could endanger the Group as a going concern. 

There are currently no such risks discernible for the future either. All in all, the risks to the BayWa Group are limited and manageable. 

Along with potentially non-influenceable or only indirectly influenceable global policy risks and macroeconomic risks, operational risks are also the 

focus of monitoring. As far as the latter are concerned, the BayWa Group has taken appropriate measures to manage and control these risks. 

Internal Control System for monitoring accounting processes 

The Internal Control System (ICS) which monitors accounting processes is also a key component of opportunity and risk management. The 

BayWa Group has set in place a professional control system, which has been certified in many areas, comprising measures and processes to safeguard 

its assets and to guarantee the presentation of a true and fair view of the result of operations. 

The annual consolidated financial statements are drawn up through a centralised process. Compliance with legal provisions and regulations pertaining 

to the Articles of Association during this process is guaranteed by the prescribed accounting standards. Corporate Accounting acts as a direct point 

of contact for the managers of the subsidiaries in matters pertaining to reporting and the annual and interim financial statements and draws up the 

consolidated financial statements in accordance with IFRS. 

A control system which monitors the accounting process ensures the complete and timely capturing of all business transactions in accordance with 

the statutory provisions and the regulations laid down under the Articles of Association. Moreover, it serves to guarantee that stocktaking is duly and 

properly performed and that assets and liabilities are recognised, valued and disclosed appropriately. The control system uses both IT-based and 

manual control mechanisms to ensure the regularity and reliability of accounting. Beyond this, suitable control mechanisms, such as strict compliance 

with the principle of dual control and analytical reviews, have been installed in all processes relevant for accounting. In addition, Internal Audit, which is 

independent of these processes, audits all accounting-related processes. 

The obligation of all subsidiaries to report their figures every quarter on an IFRS basis in a standardised reporting format to BayWa enables targetperformance 

divergences to be identified swiftly, thereby offering an opportunity of taking action at short notice. 



Corporate Accounting monitors all processes relating to the consolidated financial statements as part of quarterly reporting, such as the capital, 

liabilities, expenses and income consolidation and the elimination of inter-company results, in conjunction with the reconciliation of the Group 

companies. 

The departments and units of the Group involved in the accounting process are suitably equipped in terms of quantity and quality, and training courses 

are regularly conducted. 

The integrity and responsibility of all employees in respect of finance and financial reporting is ensured through taking each employee under 

obligation to observe the code of conduct adopted by the respective company. 

The employing of highly qualified personnel, concerted and regular training and continuous professional development, along with stringent functional 

segregation in financial accounting in the preparing and booking of vouchers as well as in controlling is guaranteed through compliance with local and 

international accounting rules in the annual and consolidated financial statements. 


167


(D.) Notes to the Income Statement 

The layout of the income statement accords with total cost-type accounting. 

(D.1.) Revenues 

Revenues and earnings are always recorded at the time when the benefits of and the risks associated with the ownership of the goods and products 

sold and the services provided have passed to the buyer. Revenues and earnings are reported minus discounts, rebates and bonuses. 

The breakdown by business unit and region can be seen in the segment report (Note E.2.). Owing to the diversified business activities of the individual 

segments, inter-segment sales are transacted only to a minor extent. 

Sales revenues break down as follows: 


Goods 9,513.544 7,840.478 

Services 72.133 62.510 

9,585.677 7,902.988 

(D.2.) Other operating income 


Rental income 27.101 23.471 

Gains from the disposal of assets 23.358 31.721 

Gains from negative goodwill 0.597 0.102 

Income from the release of provisions 10.476 11.669 

Reimbursement of expenses 16.020 14.762 

Sourcing of employees 4.121 4.001 

Advertising allowance 3.612 5.133 

Price gains 4.061 3.225 

Income from receivables written down/release of value adjustments 2.896 5.402 

Other income 37.743 27.719 

129.985 127.205 

Other income comprises income from licences and numerous other individual positions. Rental income includes gains from incidental costs. 


(D.3.) Cost of materials 



Expenses for raw materials, consumables and supplies, and for good sourced 8,399.539 6,885.771 

Expenses for services outsourced 103.585 51.253 

(D.4.) Personnel expenses 


169 

8,503.124 6,937.024 


Wages and salaries 551.491 514.690 

Share-based payment 1.361 1.388 

Expenses for pension provisions, support and service units 48.527 44.075 

(of which ongoing service cost) (4.193) (4.050) 

Social insurance levies 78.419 73.571 

679.798 633.724 

After calculation of the pension provisions under IAS 19, total expenses for pension provisions come to €26.092 million (2010: €27.264 million). 

Of this amount, a portion of €4.193 million has been disclosed under personnel expenses and a portion of €21.899 million (2010: €23.214 million) 

under interest expenses. 

Number 2011 2010 

Employees 

Annual average (Section 267 para. 5 of the German Commercial Code) 15,591 15,220 

of which jointly held companies 0 82 

Status: 31 December 16,834 16,432 

of which jointly held companies 0 0 

The employee numbers disclosed from jointly held companies pertain to employees of the Animedica Group which was sold on 30 September 2010.


(D.5.) Other operating expenses 


Vehicle fleet 54.186 45.376 

Maintenance 45.598 38.974 

Advertising 42.326 34.513 

Energy 31.180 29.239 

Rent 32.153 30.318 

Expenses for staff hired externally 18.467 20.804 

Information expenses 12.780 12.017 

Commission 11.642 9.985 

Insurances 10.617 9.185 

Cost of legal and professional advice, audit fees 22.626 17.003 

Depreciation/value adjustments of receivables 16.237 7.369 

IT costs 4.192 2.772 

Travel expenses 8.452 7.379 

Office supplies 7.802 6.878 

Other tax 6.610 6.109 

Administrative expenses 2.239 4.434 

Training and continuous professional development 7.211 6.544 

Decommissioning and disposal 8.194 7.009 

Currency-induced losses 4.231 3.482 

Loss from asset disposals 7.744 2.703 

Other expenses 27.896 26.157 

Other expenses comprise mainly general selling and other costs, such as those incurred by securing against operating risks. 

(D.6.) Income from participating interests recognised at equity and other income from shareholdings 


382.383 328.250 


Profit/loss from participating interests recognised at equity 1.386 7.194 

Income from affiliated companies 1.514 0.936 

Income from the disposal of affiliated companies 0.478 0.001 

Other income from holdings and similar income 10.324 14.258 

Write-downs of financial assets and other expenses – 1.658 – 2.371 

Other income from shareholdings 10.658 12.824 

Dividend income is recorded as and when a claim to payout arises. 

12.044 20.018

(D.7.) Interest income and expenses 



Interest and similar income 4.126 3.286 

(of which from affiliated companies) (1.032) (0.321) 

Interest from fair value measurement 0.450 0.188 

Interest income 4.576 3.474 

Interest and similar expenses – 34.462 – 20.276 

(of which to affiliated companies) (– 0.245) (– 0.173) 

Interest from fair value measurement – 0.485 – 0.143 

Interest portion of finance leasing – 0.243 – 0.103 

Interest portion of the transfers to pension provisions and other personnel provisions – 23.111 – 24.669 

Interest expense – 58.301 – 45.191 

Net interest – 53.725 – 41.717 

(D.8.) Income tax 

Income tax breaks down as follows: 


Actual taxes – 32.144 – 24.569 

Deferred taxes 4.272 4.273 


171 

– 27.872 – 20.296 

Actual tax income and expenses comprise the corporate and trade tax of the companies in Germany and comparable taxes on foreign companies. 

Deferred taxes are formed for all temporary differences between the tax-related assigned value and IFRS values as well as the consolidation measures 

through profit and loss. Moreover, deferred taxes on the asset side of €2,036 million (2010: €0.374million) were set off against revaluation reserve in 

equity without effect on income. Deferred tax assets include tax-reducing claims which arise from the expected utilisation of loss carryforwards in the 

years ahead, the realisation of which is assured with sufficient probability. These come to €3.824 million (2010: €2.407 million). As part of corporate 

planning, a time horizon of three years has been assumed here. Deferred tax was not formed on loss carryforwards of subsidiaries in an amount of 

€10.556 million as their usability is not anticipated. Loss carryforwards of individual Group companies can be partly carried forward within a limited 

period of time. No tax assets which are eligible as carryforwards are likely to expire. 

Deferred taxes are calculated on the basis of the tax rates which prevail or are anticipated given the current legal situation in the individual countries at 

the time when taxes are levied. The tax rate of BayWa AG remained at 28.18%, unchanged from the previous year.


Deferred tax assets and liabilities are allocated to the individual balance sheet items as shown in the table below: 



Deferred tax assets Deferred tax liabilities 

2011 2010 2011 2010 

Intangible assets and property, plant and equipment 5.405 5.759 74.784 68.409 

Financial assets 1.807 12.625 2.543 3.511 

Current assets 3.180 4.272 1.713 2.330 

Other assets — — 0.603 9.135 

Tax loss carryforwards 9.826 12.799 — — 

Provisions 56.131 55.549 2.934 2.086 

Liabilities 1.152 12.396 1.831 — 

Other liabilities 0.118 2.097 1.791 1.677 

Deferred value-adjusted tax assets – 7.111 – 11.953 — — 

Balance – 5.085 – 6.115 – 5.085 – 6.115 

Consolidation 4.085 4.415 19.596 19.358 

69.508 91.844 100.710 100.391 

The actual tax expenses are €0.348 million above the amount which would have been incurred if the German tax rate had been applied under the 

currently prevailing law, plus the solidarity surcharge and the tax trade on the profit of the Group before tax. The computational tax rate of 28.18% 

calculated for actual tax is based on the uniform corporate tax rate of 15%, plus the solidarity surcharge of 5.5% and the average effective trade tax 

of 12.35%. Deferred tax liabilities were not recognised for subsidiaries and associated companies as the company can control the timing of reversals 

and because it is therefore probable that the temporary difference will not reverse in the foreseeable future. No deferred tax liabilities were formed for 

temporary differences in an amount of €6.3 million (2010: €5.8 million) from subsidiaries and associated companies. 

The table below shows the transition from the computed tax expenses in accordance with the corporate tax rate to the income tax expenses actually 

reported: 


Consolidated result before income tax 97.671 87.138 

Computational tax expenses based on a tax rate of 28.18% 27.524 24.556 

Difference against foreign tax rates 0.292 – 1.356 

Tax not relating to the period 3.622 – 0.938 

Permanent difference changes – 0.636 – 1.080 

Tax effect due to non-tax deductible expenses 1.208 0.743 

Trade tax deductions and additions 0.491 – 1.074 

Final consolidation effect – 0.927 2.463 

Tax-exempt income – 6.976 – 4.645 

Changes in the value adjustment of deferred tax assets 2.729 2.405 

Tax effect from equity results 0.586 – 0.204 

Other tax effects – 0.041 – 0.574 

Income tax 27.872 20.296


(D.9.) Profit share of minority interest 

Profit of €18.532 million (2010: €16.404 million) due to other shareholders is mainly attributable to the minority shareholders of the Austrian 

subsidiaries. 

(D.10.) Earnings per share 

Earnings per share are calculated by dividing the portion of profit of BayWa AG’s shareholders by the average number of the shares issued in the 

financial year and dividend-bearing shares. There were no diluting effects. 


173 

2011 2010 

Income adjusted for minority interest In € million 51.267 50.438 

Average number of shares issues Units 34,203,731 34,085,040 

Basic earnings per share € 1.50 1.48 

Diluted earnings per share € 1.50 1.48 

Proposed dividend per share € 0.60 0.50


(E.) Other Information 

(E.1.) Explanations on the Cash Flow Statement of the BayWa Group 

The cash flow statement shows how the cash and cash equivalents of the BayWa Group have changed due to cash inflow and outflow during the year 

under review. Cash and cash equivalents shown in the cash flow statement comprise all liquid funds disclosed in the balance sheet, i.e. cash in hand, 

cheques and deposits in banks. Owing to the fact that the Group conducts its business mainly in the eurozone, the impact of exchange-rate induced 

changes in cash and cash equivalents is of secondary importance and is therefore not disclosed separately. The funds are not subject to any restraints 

on disposal. 

In accordance with the standards set out under IAS 7, the cash flow statement is divided up into cash flow from operating activities, investing activities 

and financing activities. 

The cash flow from operating activities is calculated indirectly, based on consolidated net income for the year. This cash flow is ascertained by 

adjusting it for non-cash expenses (mainly depreciation and amortisation) and income. The cash flow from investing activities is calculated on a casheffective 

basis and comprises cash-effective changes in consolidated non-current assets. Cash flow from financing activities is also ascertained on 

a cash-effective basis and comprises primarily cash-effective changes in the financing of operations and cash outflows from dividend distribution. 

Within the scope of the indirect calculation of these positions, changes from currency translation and from the group of consolidated companies were 

eliminated as they do not affect cash. For this reason, a comparison of these figures with the corresponding figures in the consolidated balance sheet 

is not possible. Further details on acquisitions and disposals can be found under Note B.1. 

(E.2.) Explanations on the segment report 

Dividing up of operations into segments 

The segment report provides an overview of the important segments of the BayWa Group. The breakdown of the segments accords with the 

provisions set out under IFRS 8. The segments are to be presented in the same form as is submitted to decision makers, namely the Board of 

Management of BayWa AG, in the respective reports made on a regular basis and which therefore form the basis for strategic decisions. This results 

in greater uniformity of the internal and external reporting system. All consolidation measures are shown in a separate column of the segment report. 

Segment reporting by operating segment 

Through its Agricultural Trade sub-segment, the Group serves the whole value chain covering the production of agricultural produce. This includes 

the delivery of agricultural operating resources such as fertilisers, crop protection, seed and feedstuff. The Fruit sub-segment combines the activities 

of the Group in the business of fruit trading. The collection, storage and selling of plant-based products are also activities allocated to Agricultural 

Trade. Along with the sale of agricultural and municipal equipment, the Agricultural Equipment sub-segment also operates the workshops providing 

services. 



The Energy sub-segment mainly covers trading in mineral oils, fuels and lubricants and the filling station business. The Renewable Energies 

sub-segment combines the activities of the Group in the field of renewable energies. Business is focused on project development as well as trading 

and offering services for the operation of photovoltaic, wind power and biogas facilities. 

The Building Materials sub-segment sells building materials for construction and civil engineering. The DIY & Garden Centres sub-segment comprises 

retail activities. 

The Other Activities segment mainly comprises trading in consumer goods via the assigned subsidiaries. 

Apart from sales revenues generated through business with third parties which are disclosed in the sub-segments, inter-segment sales are also 

reported. Inter-segment sales are conducted at terms customary in the market. Any interim profits arising in this context have been eliminated 

in the consolidated financial statements. Moreover, write-downs and write-ups and the financial results per sub-segment are disclosed, along with 

earnings before interest, tax, depreciation and amortisation (EBITDA), earnings before interest and tax (EBIT) and earnings before tax (EBT). This is 

also applicable to the segmental assets, with separate disclosure of the inventories and segmental liabilities. Investments made (excluding financial 

assets) are also divided up among the sub-segments. Such investments concern the addition of intangible assets and property, plant and equipment. 

Moreover, information in this segment report includes the annual average number of employees per sub-segment. 


175


Segment information by operating segment 


31/12/2011 Agricultural Trade Fruit 


Agricultural 

Equipment Agriculture Energy 

Renewable 

Energies Energy 


Building 

Materials 


DIY & Garden 

Centres 

Building 

Materials 

177 

Other 

Activities Transition Group 

Revenues generated through business with third parties 3,029.647 129.731 1,099.539 4,258.917 2,805.869 305.967 3,111.836 1,508.487 557.060 2,065.547 149.377 9,585.677 

Inter-segment revenues 328.825 — 19.650 348.475 155.228 43.862 199.090 13.332 32.340 45.672 64.372 – 657.609 — 

Total revenues 3,358.472 129.731 1,119.189 4,607.392 2,961.097 349.829 3,310.926 1,521.819 589.400 2,111.219 213.749 – 657.609 9,585.677 

Earnings before interest, tax, depreciation and amortisation 

(EBITDA) 

82.041 

5.916 

27.437 

115.394 

15.431 

Depreciation/amortisation – 25.986 – 1.931 – 9.435 – 37.352 – 9.092 – 9.382 – 18.474 – 17.072 – 12.065 – 29.137 – 14.064 – 3.146 – 102.173 

Earnings before interest and tax (EBIT) 56.055 3.985 18.002 78.042 6.339 27.061 33.400 24.666 11.806 36.472 41.544 – 38.062 151.396 

Financial result – 20.496 – 0.431 – 9.306 – 30.233 0.089 – 5.306 – 5.217 – 8.006 – 4.479 – 12.485 37.557 – 31.303 – 41.681 

of which: net interest – 20.496 – 0.431 – 9.306 – 30.233 0.089 – 10.344 – 10.255 – 8.006 – 4.479 – 12.485 0.110 – 0.862 – 53.725 

of which: equity result — 0.388 0.388 — 0.998 1.386 

Earnings before tax (EBT) 35.559 3.554 8.696 47.809 6.428 16.717 23.145 16.660 7.327 23.987 41.654 – 38.924 97.671 

Income tax – 27.872 

Net income 69.799 

Assets 1,094.173 30.798 496.996 1,621.967 343.355 799.135 1,142.490 471.778 357.843 829.621 1,423.890 – 1,104.926 3,913.042 

of which: non-current assets held for sale — — 107.545 107.545 151.255 – 258.800 — 

Inventories 553.922 2.150 241.911 797.983 43.900 175.304 219.204 108.183 128.385 236.568 71.259 – 159.586 1,165.428 

of which: non-current assets held for sale — — 89.926 89.926 70.996 – 160.922 — 

Liabilities 593.232 131.637 285.355 1,010.224 420.802 472.299 893.101 364.709 153.825 518.534 1,114.612 – 773.700 2,762.771 

of which: liabilities from non-current assets held for sale — — 7.882 7.882 74.360 – 82.242 — 

Investments in intangible assets, property, plant and equipment 

and investment property (incl. company acquisitions) 

45.165 

2.208 

19.633 

67.006 

28.496 

Employee annual average 3,606 193 3,060 6,859 1,108 279 1,387 4,163 2,535 6,698 647 — 15,591 

36.443 

235.285 

51.874 

263.781 

41.738 

13.571 

23.871 

18.450 

65.609 

32.021 

55.608 

41.392 

– 34.916 

— 

253.569 

404.200


Segment information by operating segment 


31/12/2010 Agricultural Trade Fruit 


Agricultural 

Equipment Agriculture Energy 

Renewable 

Energies Energy 


Building 

Materials 


DIY & Garden 

Centres 

Building 

Materials 

179 

Other 

Activities Transition Group 

Revenues generated through business with third parties 2,528.981 102.820 873.317 3,505.118 2,103.699 254.823 2,358.522 1,370.829 532.266 1,903.095 136.253 — 7,902.988 

Inter-segment revenues 267.817 — 7.094 274.911 104.959 12.875 117.834 11.529 30.336 41.865 57.873 – 492.483 — 

Total revenues 2,796.798 102.820 880.411 3,780.029 2,208.658 267.698 2,476.356 1,382.358 562.602 1,944.960 194.126 – 492.483 7,902.988 

Earnings before interest, tax, depreciation and amortisation 

(EBITDA) 

76.753 

5.464 

19.743 

101.960 

17.586 

Write-downs/write-ups – 27.364 – 1.729 – 8.964 – 38.057 – 8.299 – 3.100 – 11.399 – 16.742 – 12.411 – 29.153 – 17.104 – 3.613 – 99.326 

Earnings before interest and tax (EBIT) 49.389 3.735 10.779 63.903 9.287 21.053 30.340 8.539 9.794 18.333 41.819 – 25.540 128.855 

Financial result – 16.386 – 0.271 – 8.661 – 25.318 – 0.040 – 0.733 – 0.773 – 5.482 – 4.641 – 10.123 35.137 – 20.622 – 21.699 

of which: net interest – 16.386 – 0.271 – 8.661 – 25.318 – 0.040 – 4.507 – 4.547 – 5.482 – 4.641 – 10.123 – 0.655 – 1.074 – 41.717 

of which: equity result — 0.641 0.641 — 6.553 — 7.194 

Earnings before tax (EBT) 33.003 3.464 2.118 38.585 9.247 16.546 25.793 3.057 5.153 8.210 41.164 – 26.614 87.138 

Income tax – 20.296 

Net income 66.842 

Assets 1,032.378 52.736 363.388 1,448.502 230.998 487.102 718.100 500.311 352.186 852.497 1,079.984 – 845.832 3,253.251 

of which: non-current assets held for sale — 36.765 36.765 — 12.339 – 49.104 — 

Inventories 492.366 2.179 172.660 667.205 31.735 72.355 104.090 112.534 110.238 222.772 81.576 – 13.314 1,062.329 

of which: non-current assets held for sale — — — — — — 

Liabilities 623.416 17.112 343.533 984.061 306.247 466.429 772.676 328.828 168.799 497.627 515.572 – 522.209 2,247.727 

of which: liabilities from non-current assets held for sale — 33.007 33.007 — — – 33.007 — 

Investments in intangible assets, property, plant and equipment 

and investment property (incl. company acquisitions) 

41.973 

3.509 

11.973 

57.455 

11.246 

Employee annual average 3,675 186 2,776 6,637 940 252 1,192 4,085 2,477 6,562 829 — 15,220 

24.153 

44.050 

41.739 

55.296 

25.281 

26.593 

22.205 

17.685 

47.486 

44.278 

58.923 

9.371 

– 21.927 

— 

228.181 

166.400


Segment reporting by region 

Beyond reporting under IFRS 8, which does not require secondary segmental information, information on segment reporting by region continues to 

be disclosed. Consequently, external sales are allocated according to where the customer is domiciled; the Group’s core markets are in Germany and 

Austria. Accordingly, these countries are shown separately. Other international operations mainly include the activities of the Group in Eastern Europe. 

Segment information by region 


External sales 


Investments in intangible assets, property, plant 

and equipment and investment property 

(incl. company acquisitions) Assets 

2011 2010 2011 2010 2011 2010 

Germany 6,238.956 5,159.850 130.404 121.974 2,459.942 2,177.084 

Austria 2,453.937 2,123.421 32.050 24.601 979.566 933.177 

Other international 

operations 

892.784 

619.717 

Group 9,585.677 7,902.988 404.200 166.400 3,913.042 3,253.251 

(E.3.) Material events after the reporting date 

With effect from 1 January 2012, BayWa took over the filling station and mineral oil business of Leberzammer GmbH & Co. KG, Gunzenhausen, by 

way of an asset deal. The provisional cost of purchase of the assets transferred comes to €0.160 million. 






241.746 


BayWa took over the customer base of Gustav Baumann GmbH, Coburg, by way of an asset deal with effect from 1 January 2012. The provisional cost 

of purchase of the assets transferred comes to €0.060 million. There was no goodwill from the acquisition. 

BayWa AG acquired 70% of the shares in Tecno Spot GmbH, Bruneck, Italy, through its lower-tier subsidiary MHH Solartechnik GmbH, Tübingen, 

with effect from 1 February 2012. The transaction marks the Group’s entry into the Italian photovoltaic wholesale business. Tecno Spot GmbH is a 

wholesale company specialised in photovoltaic systems. The seller is Gremes GmbH which will remain invested with 30% of the shares in Tecno Spot 

GmbH. The purchase price for the shares comes to approximately €8 million, plus a performance-related component of a maximum €14.5 million to 

be paid out over the next three years. Anti-trust authority approval of the sale is still pending. 

Tecno Spot GmbH, which was founded in 1998, is an established premium supplier which covers the entire system integration value chain in the 

wholesale business for photovoltaic plants. Tecno Spot is a high-growth company with a strong footing in the market. It sold more than 50 megawatts 

worth of photovoltaic plants in the financial year 2010 and generated revenues of around €146 million. In the last three years, the company has 

doubled its workforce to 30 employees. Tecno Spot GmbH has been represented in Austria through its subsidiary GE-TEC GmbH since 2008 and in 

the US since 2009 through Tecnospot Solar USA, Inc., which was established in the same year. 

19.825 

473.534 

142.990


Munich-based BayWa AG is entering the international fruit market in New Zealand and intends to acquire 63% of the shares in Turners & Growers Ltd 

(T & G), Auckland, New Zealand. This acquisition will enable BayWa AG to become a global player in the supply of pome fruit. The international trading 

group has already come to an agreement with Guinness Peat Group plc, London, UK, T & G’s major shareholder, on the acquisition of its 63% interest. 

In the context of New Zealand’s legal provisions, the acquisition will be part of a takeover offer to acquire up to 100% of the share capital of T & G at a 

price of NZD1.85 per share. The purchase price will be in the range of NZD137 million (€79 million) and NZD216 million (€125 million), depending 

on the takeup rate of by T & G shareholders. The transaction is still subject to approval by the German anti-trust authority and New Zealand’s Overseas 

Investment Office. 

T & G’s presence on five continents will enable BayWa AG to expand its offer in the fruit business and gain access to the world’s high-growth 

markets, particularly in Asia where T & G is already established. T & G is New Zealand’s leading distributor, marketer and exporter of premium fresh 

fruit. In addition, the company holds the exclusive brand rights for the global cultivation and sale of the Jazz and Envy apple varieties as well as the 

ENZAGreen, ENZAGold and ENZARed kiwi varieties. Moreover, T & G holds a 70% stake in Delica NZ, New Zealand’s largest exporter of fresh fruit 

and sole exporter of ENZA dessert fruit to Asia. The company operates as a trading platform for apples in South America, the US, South Africa, Asia 

and Europe. 

T & G was founded in 1897 and has around 1,400 employees groupwide. The international company is listed on the New Zealand Stock Exchange and 

generated annual revenues of €346 million in 2010. Its core business includes the collection, storage and sale of apples, kiwis and tomatoes. 

(E.4.) Litigation 

Neither BayWa AG nor any of its group companies are involved in a court case or arbitration proceedings which could have a major impact on the 

economic situation of the Group, either now or in the past two years. Such court cases are also not foreseeable. Provisions have been made in an 

appropriate amount at the respective Group companies for any financial burdens arising from a court case or arbitration proceedings and/or there is 

an appropriate insurance cover. 

(E.5.) Information pursuant to Section 160 para. 1 item 8 of the German Stock Corporation Act (AktG) 

Pursuant to the German Securities Trading Act (WpHG), any shareholder who reaches, exceeds, or falls below the thresholds of 3, 5, 10, 15, 20, 25, 

30, 50 or 75% of the voting rights of a listed company is required to inform the company and the German Financial Supervisory Authority (BaFin) 

without delay. BayWa AG was informed of the following holdings (the proportion of voting rights relates to the time when notification was made and 

may therefore be meanwhile outdated): 

Pursuant to Section 41 para. 2 in conjunction with Section 21 para. 1 of the German Securities Trading Act, Bayerische Raiffeisen-Beteiligungs-AG, 

Beilngries, informed us on 4 April 2002 that the proportion of its voting rights in our company came to 37.51% on 1 April 2002. 

Raiffeisen Agrar Invest GmbH, Vienna, Austria, informed us on 16 July 2009 that, pursuant to Section 21 para. 1 of the German Securities Trading Act, 

the share apportioned to it of the voting rights in BayWa Aktiengesellschaft, Arabellastraße 4, 81925 Munich, Germany, exceeded the thresholds of 15, 

20 and 25% on 15 July 2009 and that the whole share in the voting rights came to 25.12% (8,533,673 voting rights, of which 8,389,785 voting rights 

from registered shares with restricted transferability and 143,888 voting rights from registered shares) on 15 July 2009. 

Raiffeisen Agrar Holding GmbH, Vienna, Austria, informed us on 16 July 2009 that, pursuant to Sections 21 para. 1 and 22 para. 1 sentence 1 item 1 

of the German Securities Trading Act, that the share of voting rights apportioned to it in BayWa Aktiengesellschaft, Arabellastraße 4, 81925 Munich, 

Germany, had exceeded the thresholds of 15, 20 and 25% on 15 July 2009 and that the whole share in the voting rights came to 25.12% (8,533,673 

voting rights, of which 8,389,785 voting rights from registered shares with restricted transferability and 143,888 voting rights from registered shares) 

on 15 July 2009. Of these voting rights, 25.12% (8,533,673 voting rights, of which 8,389,785 voting rights from registered shares with restricted 

transferability and 143,888 voting rights from registered shares) were apportionable to Raiffeisen Agrar Holding GmbH pursuant to Section 22 para. 

1 sentence 1 item 1 of the German Securities Trading Act. These voting rights were apportionable to Raiffeisen Agrar Holding GmbH via Raiffeisen 

Argrar Invest GmbH (direct holder of the voting rights) pursuant to Section 22 para. 1 sentence 1 item 1 of the German Securities Trading Act. 

LEIPNIK-LUNDENBURGER INVEST Beteiligungs AG, Vienna, Austria, informed us on 16 July 2009 that, pursuant to Sections 21 para. 1 and 

22 para. 1 sentence 1 item 1 of the German Securities Trading Act, the share apportioned to it of the voting rights in BayWa Aktiengesellschaft, 

Arabellastraße 4, 81925 Munich, Germany, exceeded the thresholds of 15, 20 and 25% on 15 July 2009 and that the whole share in the voting rights 

came to 25.12% (8,533,673 voting rights, of which 8,389,785 voting rights from registered shares with restricted transferability and 143,888 voting 

rights from registered shares) on 15 July 2009. Of these voting rights, 25.12% (8,533,673 voting rights, of which 8,389,785 voting rights from shares 

with restricted transferability and 143,888 voting rights from registered shares) were apportioned to LEIPNIK-LUNDENBURGER INVEST Beteiligungs 

AG pursuant to Section 22 para. 1 sentence 1 item 1 of the German Securities Trading Act. These voting rights were apportionable to LEIPNIK- 

LUNDENBURGER INVEST Beteiligungs AG via Raiffeisen Agrar Holding GmbH pursuant to Section 22 para. 1 sentence 1 item 1 of the German 

Securities Trading Act. 


181


On 8 September 2009, we received the following notification from ‘KORMUS’ Holding GmbH, Friedrich-Wilhelm-Raiffeisen-Platz 1, in 1020 Vienna, 

Austria, Company Register no. FN 241822X: 

“We herewith inform you that, pursuant to Sections 21 para. 1 and 22 para. 1 sentence 1 item 1 of the German Securities Trading Act, the share of the 

voting rights in BayWa Aktiengesellschaft, Arabellastraße 4, 81925 Munich, Germany, apportioned to us had fallen below the thresholds of 25, 20, 15, 

10, 5 and 3% on 8 September 2009 and that the whole share in the voting rights now amounts to 0% (the equivalent of 0 voting rights). 

To date a share in the voting rights of 25.12% (the equivalent of 8,533,673 voting rights) was apportionable to us pursuant to Section 22 para. 1 

sentence 1 item 1 of the German Securities Trading Act via LEIPNIK-LUNDENBURGER INVEST Beteiligungs AG. As a result of a demerger, 

16,329,226 of the shares formerly held by us in LEIPNIK-LUNDENBURGER INVEST Beteiligungs AG (the equivalent of 50.05% of the shares and the 

voting rights) were directly transferred to ‘LAREDO’ Beteiligungs GmbH, our direct parent company, with effect from 8 September 2009.” 

‘LAREDO’ Beteiligungs GmbH, Vienna, Austria, informed us on 16 July 2009 that, pursuant to Sections 21 para. 1 and 22 para. 1 sentence 1 item 1 

of the German Securities Trading Act, the share apportioned to it of the voting rights in BayWa Aktiengesellschaft, Arabellastraße 4, 81925 Munich, 

Germany, exceeded the thresholds of 15, 20 and 25% on 15 July 2009 and that the whole share in the voting rights came to 25.12% (8,533,673 

voting rights, of which 8,389,785 voting rights from registered shares with restricted transferability and 143,888 voting rights from registered shares) 

on 15 July 2009. Of these voting rights, 25.12% (8,533,673 voting rights, of which 8,389,785 voting rights from shares with restricted transferability 

and 143,888 voting rights from registered shares) were apportioned to ‘LAREDO’ Beteiligungs GmbH pursuant to Section 22 para. 1 sentence 1 

item 1 of the German Securities Trading Act. These voting rights were apportionable to ‘LAREDO’ Beteiligungs GmbH via ‘KORMUS’ Holding GmbH 

pursuant to Section 22 para. 1 sentence 1 item 1 of the German Securities Trading Act. 

RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN reg.Ges.m.b.H., Vienna, Austria, informed us on 16 July 2009 that, pursuant to Sections 21 

para. 1 and 22 para. 1 sentence 1 item 1 of the German Securities Trading Act, that the share of voting rights apportioned to it in BayWa 

Aktiengesellschaft, Arabellastraße 4, 81925 Munich, Germany, had exceeded the thresholds of 15, 20 and 25% on 15 July 2009 and that the 

whole share in the voting rights came to 25.12% (8,533,673 voting rights, of which 8,389,785 voting rights from registered shares with restricted 

transferability and 143,888 voting rights from registered shares) on 15 July 2009. Of these voting rights, 25.12% (8,533,673 voting rights, of which 

8,389,785 voting rights from registered shares with restricted transferability and 143,888 voting rights from registered shares) were apportionable 

to RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN reg.Ges.m.b.H pursuant to Section 22 para. 1 sentence 1 item 1 of the German Securities 

Trading Act. These voting rights were apportionable RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN reg.Ges.m.b.H. via ‘LAREDO’ 

Beteiligungs GmbH pursuant to Section 22 para. 1 sentence 1 item 1 of the German Securities Trading Act. 

SKAGEN AS, Skagen 3, 4006 Stavanger, Norway, herewith states in the name and on behalf of SKAGEN Global verdipapirfond, Skagen 3, 4006 

Stavanger, Norway, that, pursuant to Section 21 para. 1 of the German Securities Trading Act, the share of SKAGEN Global verdipapirfond in the 

voting rights of BayWa AG, Arabellastraße 4, 81925 Munich, Germany, had fallen below the threshold of 3% on 14 December 2010. On this date, 

SKAGEN Global verdipapirfond held 2.45% of all voting rights in BayWa AG which corresponds to 838,495 ordinary shares. 

SKAGEN AS, Skagen 3, 4006 Stavanger, Norway, informed us on 11 March 2011 that, pursuant to Section 21 para. 1 of the German Securities 

Trading Act, the share of SKAGEN AS in the voting rights of BayWa AG, Arabellastraße 4, 81925 Munich, Germany, had fallen below the threshold of 

3% on 4 February 2011. On this date, SKAGEN AS held 2.98% of all voting rights in BayWa AG, which corresponds to 1,019,843 ordinary shares. This 

portion of 2.98%, corresponding to 1,019,843 ordinary shares, is allocable to SKAGEN AS pursuant to Section 22 para. 1 sentence 1 item 6 of the 

German Securities Trading Act. 



(E.6.) Related party disclosures 

Under IAS 24, related parties are defined as companies and individuals where one of the parties has the possibility of controlling the other or of 

exerting a significant influence on the financial and business policies of the other. 

A significant influence within the meaning of IAS 24 is constituted by participation in the financial and operating policies of the company but not the 

control of these policies. Significant influence may be exercised in several ways usually by representation on the board of management or on the 

management and/or supervisory bodies, but also by participation, for instance, in the policy-making process through material intragroup transactions, 

by interchange of managerial personnel or by dependence on technical information. Significant influence may be gained by share ownership, statute 

or contractual agreement. With share ownership, significant influence is presumed in accordance with the definition under IAS 28 “Accounting for 

Investments in Associates” if a shareholder owns 20% or more of the voting rights, either directly or indirectly, unless this supposition can be clearly 

refuted. Significant influence can be deemed irrefutable if the policy of the company can be influenced, for instance, by the corresponding appointing 

the members to the supervisory bodies. 

In relation to the shareholder group of BayWa AG, irrefutable supposition of a significant influence would be given in the position of Bayerische 

Raiffeisen-Beteiligungs-AG, Beilngries, and Raiffeisen Agrar Invest GmbH, Vienna, Austria. Evidence can be provided that Bayerische Raiffeisen- 

Beteiligungs-AG is a pure financial holding, the organisation and structure of which is not in any way designed to exert an influence of on BayWa AG. 

In addition, the Group has not carried out any business transactions with Bayerische Raiffeisen-Beteiligungs-AG and Raiffeisen Agrar Invest GmbH – 

with the exception of the dividend payments of €6.014 million (Bayerische Raiffeisen-Beteiligungs-AG) and €4.284 million (Raiffeisen Agrar Invest 

GmbH) – in the current year within the meaning of IAS 24 which need to be reported here. 


183


Transactions with related parties are shown in the table below: 


2011 Supervisory Board Board of Management 


Bayerische Raiffeisen- 

Beteiligungs-AG 

non-consolidated companies 

> 50% 


> 20% < 50% 

Receivables 0 0 0 28 19 

Liabilities 0 0 0 13 38 

Interest income 0 0 0 1 0 

Interest expenses 0 0 0 0 0 

Revenues 0 0 0 19 130 


2010 Supervisory Board Board of Management 

Bayerische Raiffeisen- 

Beteiligungs-AG 


> 50% 


> 20% < 50% 

Receivables 0 0 0 8 16 

Liabilities 0 0 0 9 2 

Interest income 0 0 0 0 0 

Interest expenses 0 0 0 0 0 

Revenues 0 0 0 12 98 

The transactions conducted with related parties pertain to the sale of goods and financing. 

Members of the Board of Management or of the Supervisory Board of BayWa AG are members in supervisory boards or board members of other 

companies with which BayWa AG maintains business relations in the course of normal business. 

(E.7.) Fees of the Group auditor 

The following fees paid to the Group auditor Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft were recognised as expenses at BayWa AG 

and its subsidiaries: 


For audits performed 0.648 0.585 

For other consultancy services 0.321 0.056 

For tax consultancy services — 0.036 

For other services 0.108 0.353

(E.8.) Executive and supervisory bodies of BayWa AG 

THE SUPERVISORY BOARD 





Other mandates: 

Bayerische Raiffeisen-Beteiligungs-AG, Beilngries (Chairman) 

DG HYP Deutsche Genossenschafts-Hypothekenbank AG, Hamburg 

Kravag-Logistic Versicherungs-AG, Hamburg 

Kravag-Sachversicherung des Deutschen Kraftverkehrs VaG, 

Hamburg 

Landwirtschaftliche Rentenbank, Frankfurt am Main 

(Board of Administration) 


R+V Allgemeine Versicherung AG, Wiesbaden 

R+V Lebensversicherung AG, Wiesbaden 

Vereinigte Tierversicherung Gesellschaft a.G., Wiesbaden 

Volksbank-Raiffeisenbank Bayreuth eG, Bayreuth (Chairman) 

Ernst Kauer 

MSc Agriculture, Vice Chairman 

Chairman of the Works Council of BayWa Headquarters 

General Attorney Ök.-Rat Dr. Christian Konrad 

Vice Chairman, Chairman of RAIFFEISEN-HOLDING 

NIEDERÖSTERREICH-WIEN reg.Gen.m.b.H., Vienna 


AGRANA Beteiligungs-AG, Vienna (Chairman) 

DO & CO Restaurants & Catering AG, Vienna 

LEIPNIK-LUNDENBURGER INVEST Beteiligungs AG, Vienna 

(Chairman) 

RAIFFEISENLANDESBANK NIEDERÖSTERREICH-WIEN AG, Vienna 

(Chairman) 


Raiffeisen Zentralbank Österreich AG, Vienna (Chairman) 

Saint Louis Sucre S.A., Paris 

Siemens AG Österreich, Vienna (Vice Chairman) 

Südzucker AG Mannheim/Ochsenfurt, Mannheim (Vice Chairman) 

Süddeutsche Zuckerrübenverwertungs-Genossenschaft eG, 

Ochsenfurt 

UNIQA Versicherungen AG, Vienna (Chairman) 

Georg Fischer 

Master Mechanic for Agricultural Machinery 

Dr. E. Hartmut Gindele 



Prof. Dr. h. c. Stephan Götzl 

Association President, Chairman of the Board of Management 

of Genossenschaftsverband Bayern e.V. 


Bayerische Raiffeisen-Beteiligungs-AG, Beilngries (Vice Chairman) 

DVB Bank SE, Frankfurt am Main 

SDK Süddeutsche Krankenversicherung a.G., Fellbach 

Otto Kentzler 

MSc Engineering, President of the German Confederation 

of Skilled Crafts 


Bank für Kirche und Caritas eG, Paderborn 

Deutscher Ring Krankenversicherungsverein a.G., Hamburg 

Dortmunder Volksbank eG, Dortmund (Chairman) 

Handwerksbau AG, Dortmund (Chairman) 

SIGNAL IDUNA Holding AG, Dortmund (Vice Chairman) 

SIGNAL IDUNA Krankenversicherung a.G., Dortmund 

(Vice Chairman) 

Peter König 


Stefan Kraft M.A. 


Erna Kurzwarth 

Regional Administration Centre Manager of BayWa AG 




Niederösterreichische Versicherung AG, St. Pölten 

RWA Raiffeisen Ware Austria AG, Vienna (Chairman) 

RWA Raiffeisen Ware Austria Handel und Vermögensverwaltung 

eGen., Vienna (Chairman) 

Albrecht Merz 

Member of the Board of Management of DZ Bank AG 


Bausparkasse Schwäbisch Hall AG, Schwäbisch Hall 

R+V Allgemeine Versicherung AG, Wiesbaden 


TeamBank AG, Nuremberg (Chairman) 

VR-LEASING AG, Eschborn 

185


Gunnar Metz 

Chairman of the Main Works Council of BayWa AG 

Gregor Scheller 

Chairman of the Board of Directors of Volksbank Forchheim 

eG, member of the Board of Directors of Bayerische 

Raiffeisen-Beteiligungs-AG 


COVUM AG, Erlangen (Chairman) 

FIDUCIA IT AG, Karlsruhe (Chairman) 


Wohnungsbau- und Verwaltungsgenossenschaft Forchheim eG, 

Forchheim (Chairman) 

Werner Waschbichler 

Vice Chairman of the Works Council of BayWa Headquarters, Operations 

Manager Logistics (until 16 February 2012) 

Bernhard Winter 

Head of Accounting Control Agriculture 

THE COOPERATIVE COUNCIL 

Wolfgang Eckert 

MBA, Chairman, Chairman of the Board of Directors of VR-Bank eG 

Members pursuant to Article 28 para. 5 of the Articles of Association 






Other members 

Wolfgang Altmüller 

MBA, Chairman of the Board of Directors of 

VR meine Raiffeisenbank eG 

Dietmar Berger 

MSc Agricultural Engineering & Economics, President of Mitteldeutscher 

Genossenschaftsverband e.V. 


Franz Breiteneicher 

Managing Director of Raiffeisen-Waren GmbH Erdinger Land 

Albert Deß 

Member of the European Parliament 

Günter Dreher (until 31 May 2011) 

MSc Administration, Chairman of the Board of Directors of Augusta- 

Bank eG (until 4 May 2011) 

Martin Empl 


Manfred Geyer 

Chairman of the Board of Directors of RaiffeisenVolksbank eG 

Gewerbebank 

Erhard Gschrey 

Certified Public Accountant/Tax Consultant, Vice Chairman of the Board 

of Management of Genossenschaftsverband Bayern e.V. 

Lorenz Hebert (until 31 July 2011) 

Chairman of the Board of Directors of Raiffeisenbank im Stiftland eG 

(until 31 July 2011) 

Lothar Hertzsch 

MSc Agricultural Engineering & Economics, farmer 

Franz-Xaver Hilmer (since 1 August 2011) 

Managing Director of Raiffeisenbank Straubing eG 

Karl Hippeli 

Member of the Board of Management of Raiffeisenbank Ochsenfurt eG 

Konrad Irtel 

Spokesman of the Board of Directors of VR Bank 

Rosenheim-Chiemsee eG 

Martin Körner 

MSc Engineering (University of Applied Sciences), farmer, fruit farmer

Franz Kustner 

Farmer 

Alois Pabst 

Farmer 


Hans Paulus 

MSc Agriculture, Director, Commodities Department of Raiffeisenbank 

im Stiftland eG 

Josef Raffelsberger 

Farmer 

Joachim Rukwied 

MSc Engineering (University of Applied Science), President of 

Landesbauernverband in Baden-Württemberg e.V. 

Hermann Schultes 

President and National Councillor of the Chamber of Agriculture of 

Lower Austria, farmer 

Gerd Sonnleitner 

President of the German Association of Farmers, the Bavarian 

Association of Farmers and the European Association of Farmers 

Ludwig Spanner 

Farmer 

Wolfgang Vogel 

President of Sächsischer Landesbauernverband e.V. 

Thomas Wirth (since 1 August 2011) 

Spokesman of the Board of Directors of Raiffeisenbank im Stiftland eG 

Maximilian Zepf 

Member of the Board of Management of Raiffeisenbank Schwandorf- 

Nittenau eG 


THE BOARD OF MANAGEMENT 


(Chief Executive Officer) 

PR/Corporate Communication, Group Audit, Corporate Marketing, 

Corporate Business Development, Group Risk Management, Building 

Materials Segment, Personnel and Senior Executives 

External mandates: 

Eramon AG, Gersthofen 

Euro Pool System International B.V., Rijswijk 

Graphit Kropfmühl AG, Hauzenberg 

MAN Nutzfahrzeuge AG, Munich 

VK Mühlen AG, Hamburg (Chairman) 

Group mandates: 


(First Vice Chairman) 

„UNSER LAGERHAUS“ WARENHANDELSGESELLSCHAFT m.b.H., 

Klagenfurt (Chairman) 

RENERCO Renewable Energy Concepts AG, Munich 



External mandate: 

Raiffeisen Zentralbank Österreich AG, Vienna 


Raiffeisen-Lagerhaus GmbH, Bruck an der Leitha 

(First Vice Chairman) 


Klagenfurt 

187



Finance, Investor Relations, Lending, Corporate Real Estate 

Management (CREM), Central Controlling, Information Systems, Law, 

Regional Administration Centres 


R+V Pensionsversicherung a.G., Wiesbaden (since 22 June 2011) 


Eurogreen Schweiz AG, Zuchwil (President of the Board of 

Administration) 

RWA Raiffeisen Ware Austria AG, Vienna (member until 4 May 2011; 

Third Vice Chairman since 4 May 2011) 


Klagenfurt 

WKN USA, LLC, San Diego 

(Member of the Board of Directors since 29 August 2011) 


Agriculture, Fruit 



Ochsenfurt 

Group mandate: 

RWA Raiffeisen Ware Austria AG, Vienna (since 4 May 2011) 


Energy, Agricultural Equipment, BayWa r.e, coordination of the 

Württemberg region 



Ochsenfurt 


BayWa r.e USA LLC, Santa Fe 

(Chairman of the Board of Directors since 6 December 2011) 

RENERCO Renewable Energy Concepts AG, Munich (Chairman) 

WKN USA, LLC, San Diego (Member of the Board of Directors since 

29 August 2011) 

Allocation of operations as per 31/12/2011 



(E.9.) Total remuneration of the Board of Management, the Supervisory Board and the Co-operative Council 

The remuneration of the Cooperative Council amounts to €0.084 million (2010: €0.083 million). The total remuneration of the Supervisory Board 

comes to €0.538 million (2010: €0.463 million); of this amount €0.250 million (2010: €0.192 million) is variable. In addition to Supervisory Board 

remuneration, employee representatives who are employees of the BayWa Group receive compensation not connected to their activities for the 

Supervisory Board. The sum total of such compensation received by the employee representatives came to €0.399 (2010: €0.361 million). The total 

remuneration of the Board of Management comes to €5.238 million (2010: €7.281 million) and breaks down as follows: 


Total remuneration of the Board of Management 5.238 7.281 

of which: 

ongoing remuneration 4.765 5.109 

non-cash benefits 0.071 0.077 

transfers to pension provision 0.402 0.325 

benefits upon termination of the employment relationship — 1.770 

The ongoing remuneration of the Board of Management is split up into 

fixed salary components 2.497 2.587 

variable salary components – short-term 0.987 1.272 

variable salary components – long-term 1.281 1.250 

An amount of €3.209 million (2010: €3.259 million) has been paid out to former members of the Board of Management of the BayWa Group and 

their dependents. Pension provisions for former members of the Board of Management are disclosed in an amount of €28.698 million (2010: 

€31.679 million). 

In its meeting on 15 June 2011, the Annual General Meeting of Shareholders passed a resolution pursuant to Section 286 para. 5 of the German 

Commercial Code to the effect that, in the preparation of the financial statements of the Group and of BayWa AG, the information required under 

Section 285 sentence 1 item 9 letter a sentences 5 to 8 of the German Commercial Code and pursuant to Section 314 para. 1 item 6 letter a 

sentences 5 to 8 of the German Commercial Code in the notes to the financial statements at company and at Group level shall be waived for the 

financial year 2011 and for the next four years. 

(E.10.) Ratification of the consolidated financial statements and disclosure 

The consolidated financial statements were released for publication by the Board of Management of BayWa AG on 1 March 2012. 

In accordance with Section 264 III of the German Commercial Code, the following companies, as subsidiaries included in the consolidated financial 

statements of BayWa AG, do not apply the regulations governing disclosure (Section 325 et seq. of the German Commercial Code): 

TESSOL Kraftstoffe, Mineralöle und Tankanlagen GmbH, Stuttgart 

BayWa Handels-Systeme-Service GmbH, Munich 

BayWa Finanzbeteiligungs-GmbH, Munich 


189


(E.11.) Proposal for the appropriation of profit 

As the company which heads up the BayWa Group, BayWa AG discloses profit available for distribution of €20,533,938.60 in its financial statements 

as at 31 December 2011 which were drawn up in accordance with German accounting standards (German Commercial Code) and adopted by the 

Supervisory Board on 28 March 2012. The Board of Management and the Supervisory Board will propose the following use of this amount to the 

Annual General Meeting of Shareholders on 30 May 2012: 

In € 

Dividend of €0.60 per dividend-bearing share 20,533,938.60 

Transfer to other revenue reserve — 

20,533,938.60 

The amount earmarked for distribution to the shareholders will be reduced by the portion of the shares owned by BayWa AG at the time when the 

resolution on profit appropriation was made. Pursuant to Section 71b of the German Stock Corporation Act, these shares are not entitled to dividend. 

This portion will be additionally transferred to other revenue reserves. 

(E.12.) German Corporate Governance Code 

The Board of Management and the Supervisory Board of BayWa AG submitted the Declaration of Conformity pursuant to Section 161 of the 

German Stock Corporation Act on 9 November 2011, and have made it permanently accessible to the shareholders on the company’s website under 

www.baywa.com. 










4 • Consolidated Financial Statements • Group Holdings of BayWa AG 

Group Holdings of BayWa AG 

(Appendix to the Notes to the 

Consolidated Financial Statements) 

as per 31 December 2011 

Name and principal place of business 


191 

share in capital 

in % 

Subsidiaries included in the group of consolidated companies 

”UNSER LAGERHAUS“ WARENHANDELSGESELLSCHAFT m.b.H., Klagenfurt, Austria 51.1 

AFS Franchise-Systeme GmbH, Vienna Austria 100.0 

Agroterra Warenhandel und Beteiligungen GmbH, Vienna, Austria 

Aufwind BB GmbH & Co. Zweiundzwanzigste Biogas KG (formerly: Aufwind Schmack Betriebs GmbH & Co. Zweiundzwanzigste Biogas KG), 

100.0 

Regensburg 

100.0 

Aufwind Nuevas Energias Sociedad Limitada, Barcelona, Spain 100.0 

AWS Entsorgung GmbH Abfall & Wertstoff Service, Boppard 90.0 

Bauzentrum Westmünsterland GmbH & Co. KG, Ahaus 100.0 

Bayerische Futtersaatbau GmbH, Ismaning 72.7 

BayWa Finanzbeteiligungs-GmbH, Munich 100.0 

BayWa Handels-Systeme-Service GmbH, Munich 100.0 

BayWa r.e España S.L.U., Barcelona, Spain 100.0 

BayWa r.e GmbH, Munich 100.0 

BayWa r.e Mozart LLC, San Diego, USA 100.0 

BayWa r.e Service GmbH, Munich 100.0 

BayWa r.e USA LLC, Santa Fe, USA 100.0 

BayWa Vorarlberg HandelsGmbH, Lauterach, Austria 51.0 

BayWa-Tankstellen-GmbH, Munich 100.0 

BOR s r.o., Choceň, Czech Republic 92.8 

bs Baufachhandel Brands & Schnitzler GmbH & Co. KG, Mönchengladbach 100.0 

CLAAS Main-Donau GmbH & Co. KG, Vohburg 90.0 

CLAAS Nordostbayern GmbH & Co. KG, Weiden 90.0 

Claas Südostbayern GmbH, Töging (formerly: Munich) 90.0 

CLAAS Württemberg GmbH, Langenau 80.0 

Diermeier Energie GmbH, Straubing 100.0 

DRWZ-Beteiligungsgesellschaft mbH, Munich 64.3 

Dulas MHH Ltd., Machynlleth Powys, UK 90.0 

ECOwind d.o.o., Zagreb, Croatia 100.0 

ECOWIND Handels- & Wartungs-GmbH, Kilb, Austria 90.0 

Eko-Energetyka Sp. z o.o., Rezesów, Poland 51.0 

EUROGREEN CZ s r.o., Jiřetín pod Jedlovou, Czech Republic 100.0 

EUROGREEN GmbH, Betzdorf 100.0 

EUROGREEN Schweiz AG, Zuchwil, Switzerland 100.0 

F. Url & Co. Gesellschaft m.b.H., Unterpremstätten, Austria 100.0 

Focused Energy LLC, Santa Fe, USA 80.0 

Frucom Fruitimport GmbH, Hamburg 100.0 

FW Kamionka Sp. z o.o., Kamionka, Poland 100.0

192 





in % 

Garant-Tiernahrung Gesellschaft m.b.H., Pöchlarn, Austria 100.0 

GEM WIND FARM 1 Ltd., London (formerly: Manchester), UK 100.0 

GEM WIND FARM 2 Ltd., London (formerly: Manchester), UK 100.0 

GEM WIND FARM 3 Ltd., London, UK 100.0 

GENOL Gesellschaft m.b.H. & Co. KG, Vienna, Austria 71.0 

IFS S.r.l., Bolzano, Italy 51.0 

L & L Rotorservice GmbH, Basdahl 100.0 

L & L Vermögensverwaltungs GmbH, Basdahl 100.0 

Les Eoliennes de Saint Fraigne SAS, Strasbourg, France 24.5 1 

Livas 1 Energeiaki EPE, Kalamata, Greece 94.0 

LTZ Chemnitz GmbH, Hartmannsdorf 90.0 

MHH France S.A.S., Toulouse, France 90.0 

MHH Solartechnik GmbH, Tübingen 100.0 

Net Environment S.L.U., Barcelona, Spain 100.0 

Neuilly Saint Front Energies SAS, Bègles, France 70.0 

Parco Solare Smeraldo S.r.l., Brixen, Italy 68.0 

Parque Eólico La Carracha S.L., Zaragoza, Spain 73.1 

Parque Eólico Plana de Jarreta S.L., Zaragoza, Spain 72.2 

Puterea Verde S.r.l., Sibiu, Romania 75.5 

r.e Bioenergie GmbH (formerly: Aufwind Neue Energien GmbH), Regensburg 100.0 

r.e Biomethan GmbH, Regensburg 100.0 

Raiffeisen-Agro d.o.o., Beograd, Serbia 100.0 

Raiffeisen Waren GmbH Nürnberger Land, Hersbruck 52.0 

Raiffeisen-Agro Magyarország Kft., Székesfehérvár, Hungary 100.0 

Raiffeisen-Kraftfutterwerke Süd GmbH, Würzburg 85.0 

Raiffeisen-Lagerhaus GmbH, Bruck an der Leitha, Austria 89.9 

Raiffeisen-Lagerhaus Investitionsholding GmbH, Vienna, Austria 100.0 

RENERCO Beteiligungs GmbH, Grünwald (formerly: Munich) 100.0 

RENERCO Energies SAS, Paris (formerly: Strasbourg), France 100.0 

RENERCO Energy UK Ltd., London, UK 100.0 

RENERCO GEM 1 GmbH, Munich 100.0 

RENERCO GEM 2 GmbH, Munich 100.0 

RENERCO Polska Sp. z o.o., Warsaw, Poland 100.0 

RENERCO Renewable Energy Concepts AG, Munich 90.7 

RENERCO Solar GmbH, Munich 100.0 

Renewable Energy Harvest Nine GmbH & Co. KG, Grünwald 100.0 

RI-Solution GmbH Gesellschaft für Retail-Informationssysteme, Services und Lösungen mbH, Munich 100.0 

RWA International Holding GmbH, Vienna, Austria 100.0 

RWA Raiffeisen Ware Austria Aktiengesellschaft, Vienna, Austria 50.0 2 

RWA SLOVAKIA spol. s.r.o., Bratislava, Slovakia 100.0 

Schradenbiogas GmbH & Co. KG, Gröden 94.5 

Sempol spol. s.r.o., Trnava, Slovakia 100.0 

TechnikCenter Grimma GmbH, Mutzschen 70.0 

TESSOL Kraftstoffe, Mineralöle und Tankanlagen GmbH, Stuttgart 100.0 

Umspannwerk Gürtelkopf GmbH & Co. KG, Munich 100.0 

Umspannwerk Klein Bünsdorf GmbH & Co. KG, Munich 100.0 

Unterstützungseinrichtung der BayWa AG in München GmbH, Munich 100.0 

Voss GmbH & Co. KG, Coesfeld 100.0 

WAV Wärme Austria VertriebsgmbH, Vienna, Austria 89.0 

Wind am Speckberg GmbH, Munich 100.0 

Wind Water Energy ood, Varna, Bulgaria 76.0 

Windpark Everswinkel GmbH & Co. KG, Grünwald 25.0 1 

1 Minority holding with the right to raise participating interest 2 Voting right majority




193 


in % 

Windpark Everswinkel II GmbH & Co. KG, Grünwald 100.0 

Windpark Kamionka GmbH, Grünwald 100.0 

Windpark Namborn GmbH & Co. KG, Munich 25.0 1 

Windpark Pongratzer Kogel GmbH, Kilb, Austria 100.0 

Windpark Selmsdorf II GmbH & Co. KG, Grünwald (formerly: Munich) 100.0 

Windpark Wegeleben GmbH & Co. KG, Munich 100.0 

Wingenfeld Energie GmbH, Hünfeld 100.0 

WKN Amadeus, LLC, San Diego, USA 100.0 

WKN Chopin, LLC, San Diego, USA 100.0 

WKN Montana II, LLC, San Diego, USA 100.0 

WKN Ravel, LLC, San Diego, USA 100.0 

WKN USA, LLC, San Diego, USA 70.0 

WKN Vivaldi, LLC, San Diego, USA 100.0 

WKN Wagner, LLC, San Diego, USA 100.0 

WP EWL Infrastruktur GmbH & Co. KG, Munich 100.0 

WP SDF Infrastruktur GmbH & Co. KG, Grünwald 100.0 

Ybbstaler Fruit Austria GmbH, Kröllendorf, Austria 100.0 

Ybbstaler Fruit Polska Sp. z o.o., Chelm, Poland 99.9 

ZES Zentrale Einkaufs-Service GmbH, Munich 100.0 

Subsidiaries not included in the group of consolidated companies 

Agrarproduktenhandel GmbH, Klagenfurt, Austria 100.0 

AgroMed Austria GmbH, Kremsmünster, Austria 80.0 

Agro-Property Kft., Kecskemét, Hungary 100.0 

Agrosaat d.o.o., Ljubljana, Slovenia 100.0 

Almak Energies SARL, Strasbourg, France 100.0 

Aludra Energies SARL, Strasbourg, France 100.0 

AMUR S.L.U., Barcelona, Spain 100.0 

Aquila Energies SARL, Strasbourg, France 100.0 

Aufwind BB GmbH & Co. Sechsundzwanzigste Biogas KG, Regensburg 100.0 

Aufwind Schmack Asia Holding GmbH, Regensburg 80.0 

Bautechnik Gesellschaft m.b.H., Linz, Austria 100.0 

BayWa Assekuranz-Vermittlung GmbH, Munich 100.0 

BayWa Bau- & Gartenmärkte GmbH & Co. KG, Munich 100.0 

BayWa BGM Verwaltungs GmbH, Munich 100.0 

BayWa CS GmbH, Munich 100.0 

BayWa Energie Dienstleistungs GmbH, Munich 100.0 

BayWa Hungária Kft., Székesfehérvár, Hungary 100.0 

BayWa InterOil Mineralölhandelsgesellschaft mbH, Munich 100.0 

BayWa-Lager und Umschlags GmbH, Munich 100.0 

Brands + Schnitzler Tiefbau-Fachhandel Verwaltungs GmbH, Mönchengladbach 100.0 

bs Baufachhandel Brands & Schnitzler Verwaltungs-GmbH, Mönchengladbach 100.0 

Capella Energies SAS, Strasbourg, France 93.0 

Celieno Energies SAS, Strasbourg, France 93.0 

Cosmos Power S.L.U., Barcelona, Spain 100.0 

Danufert Handelsgesellschaft mbH, Vienna, Austria 60.0 

Danugrain GmbH, Krems an der Donau, Austria 60.0 

Donau-Tanklagergesellschaft mbH, Deggendorf 100.0 

Draco Energies SARL, Strasbourg, France 100.0 

DTL Donau-Tanklagergesellschaft mbH & Co. KG, Deggendorf 100.0 

Eko-En Drozkow Sp. z o.o., Żary, Poland 60.0 

Eko-En Iwonicz 2 Sp. z o.o., Rezesów, Poland 75.0 

1 Minority holding with the right to raise participating interest

194 





in % 

Eko-En Kozmin Sp. z o.o., Poznań, Poland 60.0 

Eko-En Polanow 1 Sp. z o.o., Koszalin, Poland 75.0 

Eko-En Polanow 2 Sp. z o.o., Koszalin, Poland 75.0 

Eko-En Skibno Sp. z o.o., Koszalin, Poland 75.0 

Eko-En Zary Sp. z o.o., Żary, Poland 60.0 

Energies Netes de Corral Serra S.L.U., Barcelona, Spain 100.0 

Energies Netes de Sa Boleda S.L.U., Barcelona, Spain 100.0 

Energies Netes de Son Parera S.L.U., Barcelona, Spain 100.0 

Eoliennes de la Benate SARL, Strasbourg, France 100.0 

Eurogreen Italia S.r.l., Milan, Italy 51.0 

Ewind Sp. z o.o., Rezesów, Poland 75.0 

Felis Energies SAS, Strasbourg, France 93.0 

Genam Energies SAS, Strasbourg, France 93.0 

GENOL Gesellschaft m.b.H., Vienna, Austria 71.0 

Graninger & Mayr Gesellschaft m.b.H., Vienna, Austria 100.0 

GVB Grundstücksverwaltungs- und Beteiligungs GmbH & Co. KG, Munich 100.0 

GVB Verwaltungsgesellschaft mbH, Munich 100.0 

HERA Raiffeisen-Immobilien-Leasing Gesellschaft m.b.H., Vienna, Austria 51.0 

Hungaro-Ybbstal Kft., Vesprém, Hungary 100.0 

Immobilia plus s.r.o., Choceň, Czech Republic 100.0 

Immobilienvermietung Gesellschaft m.b.H., Traun, Austria 100.0 

Jannis Beteiligungsgesellschaft mbH, Munich 100.0 

Karl Theis GmbH, Munich 100.0 

Lesia a.s., Stráznice, Czech Republic 100.0 

Libra Energies SARL, Strasbourg, France 100.0 

Magyar Agrár-Ház“ Kft., Székesfehérvár, Hungary 100.0 

MD-Betriebs-GmbH, Munich 90.0 

Menka Energies SAS, Strasbourg, France 93.0 

Monziniman XXI, S.L.U., Barcelona, Spain 100.0 

Murzim Energies SARL, Strasbourg, France 100.0 

NOB-Betriebs-GmbH, Munich 90.0 

Nuevos Parques Eólicos La Muela, A.I.E., Zaragoza, Spain 100.0 

Parco Solare Citrino S.r.l., Brixen, Italy 100.0 

Parco Solare Eliodoro S.r.l., Brixen, Italy 100.0 

Parco Solare Rubino S.r.l., Brixen, Italy 100.0 

Parco Solare Topazio S.r.l., Brixen, Italy 100.0 

Parco Solare Zaffiro S.r.l., Brixen, Italy 100.0 

Park Eolian Arieseni S.r.l., Sibiu, Romania 99.0 

Park Eolian Limanu S.r.l., Sibiu, Romania 99.0 

Park Eolian Solesti S.r.l., Sibiu, Romania 99.0 

Polaris Energies SAS, Strasbourg, France 93.0 

Prokyon Energies SAS, Strasbourg, France 93.0 

Puerto Real FV Production, S.L.U., Barcelona, Spain 100.0 

Pyxis Energies SAS, Strasbourg, France 93.0 

r.e Bioenergia Kft., Békéscsaba, Hungary 100.0 

r.e Bioenergia Projekty Sp. Z o.o. (formerly: Aufwind CEE Sp. Z o.o.), Poznań, Poland 100.0 

r.e Bioenergia Sp. Z o.o. (formerly: Aufwind Schmack Nowa Energia Sp. Z o.o.), Poznań, Poland 90.0 

r.e Bioenergie Betriebs GmbH & Co. Dreiundzwanzigste Biogas KG, Regensburg 100.0 

r.e Bioenergie Betriebs GmbH & Co. Elfte Biogas KG, Regensburg 100.0 

r.e Bioenergie Betriebs GmbH & Co. Fünfundzwanzigste Biogas KG, Regensburg 100.0 

r.e Bioenergie Betriebs GmbH & Co. Siebenundzwanzigste Biogas KG, Regensburg 100.0 

r.e Bioenergie Betriebs GmbH & Co. Vierundzwanzigste Biogas KG, Regensburg 100.0




195 


in % 

r.e Bioenergie Betriebs GmbH & Co. Zehnte Biogas KG, Regensburg 100.0 

r.e Bioenergie Betriebs GmbH & Co. Zwölfte Biogas KG, Regensburg 100.0 

r.e Bioenergie Betriebs GmbH, Regensburg (formerly: Aufwind Biogas Betriebsgesellschaft mbH, Munich) 100.0 

Raiffeisen Trgovina d.o.o., Lenart, Slovenia 100.0 

Real Power S.L.U., Barcelona, Spain 100.0 

RENERCO Sud-Est S.R.L., Bucharest, Romania 100.0 

RI-Solution Data GmbH, Vienna, Austria 100.0 

RI-Solution Service GmbH, Auerbach 100.0 

RUG Raiffeisen Umweltgesellschaft m.b.H., Korneuburg, Austria 75.0 

RWA RAIFFEISEN AGRO d.o.o., Zagreb, Croatia 100.0 

S.C. Ybbstal-Frucht Romania s.r.l., Oradea, Romania 100.0 

Saatzucht Gleisdorf Gesellschaft m.b.H., Gleisdorf, Austria 66.7 

Saint Solis Energies SAS, Strasbourg, France 93.0 

Schradenbiogas Betriebsgesellschaft mbH, Gröden (formerly: Munich) 100.0 

Solarpark Aquarius GmbH & Co. KG, Munich 100.0 

Solarpark Aries GmbH & Co. KG, Munich 100.0 

Solarpark Cetus GmbH & Co. KG, Munich 100.0 

Solarpark Gemini GmbH & Co. KG, Munich 100.0 

Solarpark Libra GmbH & Co. KG, Munich 100.0 

Solarpark Lupus GmbH & Co. KG, Grünwald 100.0 

Solrenovable Fotov. S.L., Barcelona, Spain 100.0 

Spica Energies SAS, Strasbourg, France 93.0 

Süd-Treber Gesellschaft mit beschränkter Haftung, Stuttgart 100.0 

Syrma Energies SAS, Strasbourg, France 93.0 

Talita Energies SAS, Strasbourg, France 93.0 

Tierceline Energies SARL, Strasbourg, France 100.0 

Ventus Vorpommern GmbH & Co. Windpark 1 KG, Munich 100.0 

WHG Liegenschaftsverwaltung GmbH, Klagenfurt, Austria 100.0 

Wind Park Kotla Sp. Z o.o., Warsaw, Poland 100.0 

Wind Park Lipnica Sp. Z o.o., Nowy Targ, Poland 100.0 

Windenergy Kotel ood, Varna, Bulgaria 90.0 

Windenergy Svedez ood, Varna, Bulgaria 90.0 

Windpark GHN GmbH & Co. KG, Grünwald 100.0 

Windpark GHN Grundstücksverwaltung GmbH & Co. KG (formerly: Solarpark Lepus GmbH & Co. KG), Grünwald 100.0 

Windpark Parstein GmbH & Co. KG, Grünwald 100.0 

Windpark Selmsdorf III GmbH & Co. KG, Grünwald 100.0 

Windpark Unzenberg GmbH & Co. KG, Grünwald 100.0 

Windpark Wilhelmshöhe GmbH & Co. KG, Grünwald 100.0 

Ybbstaler Getränke Grundstoffe Vertriebsgesellschaft m.b.H., Munich 100.0 

ZAX Products S.L.U., Barcelona, Spain 100.0 

ZIGZAG Inversiones S.L.U., Barcelona, Spain 100.0 

Associated companies included under the equity method 

AHG Autohandelsgesellschaft mbH, Horb am Neckar 49.0 

Aufwind BB GmbH & Co. Zwanzigste Biogas KG (formerly: Aufwind Schmack Betriebs GmbH & Co. Zwanzigste Biogas KG), Regensburg 49.0 

Aufwind Schmack Első Biogáz Szolgáltató Kft., Békéscsaba, Hungary 48.3 

BVT Technische Anlagen GmbH & Co. Blockheizkraftwerke KG, Munich 34.7 

CRE Project S.r.l., Matera, Italy 49.0 

Deutsche Raiffeisen-Warenzentrale GmbH, Frankfurt am Main 37.8 

EAV Energietechnische Anlagen Verwaltungs-GmbH, Staßfurt 49.0 

EEV Beteiligungs GmbH, Grünwald 49.0 

Frisch & Frost Nahrungsmittel-Gesellschaft m.b.H., Hollabrunn, Austria 25.0

196 





in % 

Heizkraftwerk Cottbus Verwaltungs GmbH, Cottbus 33.3 

Heizkraftwerke-Pool Verwaltungs-GmbH, Munich 33.3 

Raiffeisen Beteiligungs GmbH, Frankfurt am Main 47.4 

Süddeutsche Geothemie-Projekte GmbH & Co. KG, Munich (formerly: Haar near Munich) 50.0 

Süddeutsche Geothermie-Projekte Verwaltungs GmbH, Munich (formerly: Haar near Munich) 50.0 

Associated companies of secondary importance not included under the equity method 

Ba-Rie Grundstücksgesellschaft mbH, Landsberg am Lech 50.0 

BHG Bau-Heimwerker-Garten-Center Landsberg GmbH, Landsberg am Lech 50.0 

BLE Bau- und Land-Entwicklungsgesellschaft Bayern GmbH, Munich 25.0 

BRVG Bayerische Raiffeisen- und Volksbanken Verlag GmbH, Munich 25.0 

Chemag Agrarchemikalien GmbH, Frankfurt am Main 30.0 

DIYCO Einkaufsgesellschaft mbH, Munich 50.0 

Enairgy Veterná energia s.r.o., Bratislava, Slovakia 30.0 

H-Ppack CVBA, Sint-Truiden, Belgium 50.0 

InterSaatzucht GmbH & Co. KG, Munich 40.0 

Intersaatzucht Verwaltungs GmbH, Munich 40.0 

Kärntner Saatbaugenossenschaft reg.Gen.m.b.H., Klagenfurt, Austria 33.3 

Kartoffel-Centrum Bayern GmbH, Rain am Lech 50.0 

Lagerhaus Technik-Center GmbH & Co. KG, Korneuburg, Austria 32.1 

Lagerhaus Technik-Center GmbH, Korneuburg, Austria 34.1 

Land24 Gesellschaft mit beschränkter Haftung, Frankfurt am Main 28.3 

LLT Lannacher Lager- und Transport Ges. m.b.H., Korneuburg, Austria 50.0 

Obst vom Bodensee Vertriebsgesellschaft mbH, Oberteuringen 50.0 

raiffeisen.com GmbH & Co. KG, Frankfurt am Main 34.2 

Raiffeisen-BayWa-Waren GmbH Lobsing-Siegenburg-Abensberg-Rohr, Lobsing 22.8 

Raiffeisen-Landhandel GmbH, Emskirchen 23.4 

Rock Power S.L., Barcelona, Spain 50.0 

VR erneuerbare Energien eG Kitzingen, Kitzingen 33.3 

VR-LEASING DIVO GmbH & Co. Immobilien KG, Eschborn 47.0 3 

VR-LEASING LYRA GmbH & Co. Immobilien KG, Eschborn 47.0 3 

Wind Park Belzyce Sp. Z o.o., Warsaw, Poland 50.0 

Participations in large corporations 

Bayerische Raiffeisen-Beteiligungs-AG, Beilngries 7.4 

Equity in € thousand: 552,610 

Annual net income/loss in € thousand: 15,278 

Deutsche AVIA Mineralöl-Gesellschaft mbH, Munich 10.7 


Annual net income/loss in € thousand: 86 

Südstärke GmbH, Schrobenhausen 6.5 


Annual net income/loss in € thousand: 4,021 

VK Mühlen AG, Hamburg 10.0 


Annual net income/loss in € thousand: – 38,361 

3 Voting right share: 24%

4 • Consolidated Financial Statements • Auditor’s Report 

Independent Auditor’s Report 

We have audited the consolidated financial statements prepared by the BayWa Aktiengesellschaft, Munich, – comprising the balance sheet, the 

income statement and statement of comprehensive income, the cash flow statement, the statement of changes in equity and the notes to the 

consolidated financial statements – and the group management report for the business year from 1 January to 31 December 2011. The preparation 

of the consolidated financial statements and the group management report in accordance with IFRS, as adopted by the European Union (EU), and the 

additional requirements of German commercial law pursuant to Section 315a para. 1 German Commercial Code (HGB) and supplementary provisions 

of the articles of incorporation are the responsibility of the parent Company’s management. Our responsibility is to express an opinion on the 

consolidated financial statements and on the group management report based on our audit. 

We conducted our audit of the consolidated financial statements in accordance with Section 317 German Commercial Code and German generally 

accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer. Those standards require that we plan 

and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations 

in the consolidated financial statements in accordance with the applicable financial reporting framework and in the group management report are 

detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the group and expectations 

as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal 

control system and the evidence supporting the disclosures in the consolidated financial statements and the group management report are examined 

primarily on a test basis within the framework of the audit. The audit includes assessing the annual financial statements of those entities included in 

consolidation, the determination of entities to be included in consolidation, the accounting and consolidation principles used and significant estimates 

made by management, as well as evaluating the overall presentation of the consolidated financial statements and the group management report. We 

believe that our audit provides a reasonable basis for our opinion. 

Our audit has not led to any reservations. 

In our opinion, based on the findings of our audit, the consolidated financial statements of BayWa Aktiengesellschaft, Munich, comply with IFRS, 

as adopted by the EU, the additional requirements of German commercial law pursuant to Section 315a para. 1 German Commercial Code and 

supplementary provisions of the articles of incorporation and give a true and fair view of the net assets, financial position and results of operations 

of the Group in accordance with these requirements. The group management report is consistent with the consolidated financial statements and as a 

whole provides a suitable view of the group’s position and suitably presents the opportunities and risks of future development. 


Deloitte & Touche GmbH 

Wirtschaftsprüfungsgesellschaft 

(Steppan) (Götz) 

Wirtschaftsprüfer Wirtschaftsprüfer 

[German Public Auditor] [German Public Auditor] 


197

198 

Report of the Supervisory Board 


BayWa AG can look back on another extremely successful financial year. Its sound performance is reflected in the significant growth rates of revenues 

and profit in the three core segments of Agriculture, Energy and Building Materials as well as, ultimately, by the substantially higher dividend proposal 

to be put forward to the Annual General Meeting of Shareholders. The positioning of BayWa AG, with its diversified business model, has proven its 

worth most particularly in the face of the crisis in the financial market. The financial year ended was also determined by the expansion of activities 

in the field of renewable energies and an acceleration in the process of BayWa’s internationalisation, especially in the fruit and energy businesses. 

Moreover, a solution was found for the DIY & Garden Centres Business Unit which consisted of entering into a strategic partnership with the Hellweg 

Group. 

The Supervisory Board of BayWa AG has fulfilled the responsibility entrusted to it under the law and the Articles of Association. It regularly advised the 

Board of Management, agreed the strategy with the Board of Management, and supervised the latter in its management of the company. The common 

goal of the Board of Management and Supervisory Board is to raise the enterprise value on a sustainable basis. The Board of Management always 

kept the Supervisory Board informed in a timely and comprehensive way. The Supervisory Board was directly involved in all decisions of fundamental 

importance for the company. The measures requiring its approval were reviewed, and the respective resolutions passed both in meetings and in 

writing by way of a circulation procedure. Between the meetings, the Board of Management reported in writing on events of particular importance. 

The Supervisory Board made its decisions after thorough deliberation and consultation on the reports and the resolutions put forward by the Board of 

Management. 

The Chairman of the Supervisory Board was kept informed about important decisions by the Board of Management on an ongoing basis and 

remained in close contact with the Chairman of the Board of Management. He was informed through detailed monthly reports on the current business 

situation. The cooperation within the Supervisory Board and with the Board of Management was constructive and founded on the basis of trust in the 

reporting year 2011 as well. 

Key points of consultation of the meetings of the Supervisory Board 

In the four regular meetings of the Supervisory Board in the financial year 2011, matters of consultation were in particular the business and financial 

development of the company, the performance of the individual business units, the financial and investment planning, personnel-related decisions, the 

risk situation and questions of compliance, as well as the strategic development of the company. In particular, the Supervisory Board deliberated on 

the various participations entered into by BayWa AG during the period under review. Moreover, the Supervisory Board addressed issues pertaining to 

accounting and the audit of the annual financial statements of the company, as well as BayWa AG’s risk management and its risk status on an ongoing 

basis. The Board of Management reported regularly and extensively on these issues as well as on the Group’s current situation. 

In its meeting on 29 March 2011, the Supervisory Board dealt mainly with the annual financial statements and the management report on BayWa AG 

and on the Group as per 31 December 2010 as well as on the report of the audits performed. The meeting also discussed the agenda of the Annual 

General Meeting of Shareholders on 15 June 2011, as well as strategic issues and structural considerations within the BayWa Group. In this meeting, 

the Supervisory Board consulted on variable salary components as part of the remuneration for Board of Management members for the financial years 

2010 and 2011 and decided on the respective targets for the variable salary components. 

In its meeting on 11 May 2011, the Supervisory Board discussed the appointing of a new member to the Cooperative Council, along with the financial 

statements of the first quarter. 

Attention in the meeting on 3 August 2011 was focused on the half-yearly financial statements 2011, among other matters. Moreover, the Board of 

Management informed the Supervisory Board about current strategic projects and undertakings involving participating interests. Particular emphasis 

was placed on the strategic development of business in the Agriculture Segment (Fruit), specifically the plans to acquire New Zealand-based Turners 

& Growers Ltd and acquisitions in the US and Europe in the field of renewable energies. The meeting also concentrated on considerations for the 

realignment of the Building Materials Segment. The Supervisory Board had the Board of Management report in detail on the financial situation of the 

Building Materials Segment, most particularly on the DIY & Garden Centres Business Unit. Moreover, the Supervisory Board was informed about the 

current status of reviewing strategic opportunities for development and the resulting alternatives for a course of action. In addition, the Supervisory 

Board informed itself about the current status of discussions with third parties potentially interested in a cooperation involving the DIY and garden 

centres. 



An increase in the share capital and the corresponding amendment to the Articles of Association due to the issuing of employee shares from 2010 

Authorised Capital was decided through a resolution passed by way of circulation in the period from 29 September to 11 October 2011. 

The third quarter financial statements were presented in the meeting on 9 November 2011, and the development of business discussed in detail by 

the Supervisory Board together with the Board of Management. The Board of Management reported extensively on the development of business in 

the individual business units. 

The meeting focused especially on renewed consultations about the options for the strategic realignment of the DIY and garden centres. The 

Supervisory Board enquired again extensively about the difficult economic environment and the Board of Management’s view on the outlook for this 

business. The Supervisory Board had the Board of Management report in detail on the various options for the DIY & Garden Centres Business Unit, 

particularly closure, sale or entering into a strategic partnership. The Supervisory Board discussed the various alternatives extensively and finally 

agreed with the proposal of the Board of Management to enter into a strategic partnership with the Hellweg Group. In doing so, the Supervisory 

Board assured itself in particular of the compatibility of the companies and of the fact that there are virtually no garden centres where locations would 

overlap. The Supervisory Board gave its approval to incorporating the DIY & Garden Centres Business Unit into a joint venture with the Hellweg Group 

and a gradual takeover of the business by the Hellweg Group. 

Another important agenda item of the meeting was the acquisition of shares in Turners & Growers Ltd, Auckland, New Zealand (Turners & Growers). 

The Management Board reported in detail to the Supervisory Board on the strategic viability of this potential investment and consulted in particular on 

the future business prospects of the Agriculture Segment. The Supervisory Board concurred with the opinion of the Board of Management that the 

acquisition would strengthen BayWa AG’s Fruit Business Unit in an environment of growing competition and ongoing globalisation. The Supervisory 

Board therefore gave its approval to the planned transaction involving the signing of an agreement with the Guinness Peat Group plc, the then major 

shareholder, to initially purchase 63.46% of the shares in Turners & Growers at a price of NZD1.85 and, in addition, to submit a takeover offer to the 

other shareholders in accordance with New Zealand law. 

A further point of discussion in the meeting were personnel matters relating to the Board of Management, including the contractually agreed regular 

review of the fixed component of remuneration paid to the individual members of the Board of Management as well as the renewal of the employment 

contracts of Board members Dr. Josef Krapf and Roland Schuler. In addition, the Supervisory Board consulted on the results of previous meetings 

held by the Audit Committee, the Lending and Investment Committee and the Strategy Committee. 

In the meeting convened to review the Group’s accounts on 28 March 2012, the Supervisory Board deliberated on the financial statements and the 

management report on BayWa AG and on the Group as per 31 December 2011 and discussed the report on the audit performed. The meeting also 

concentrated on the agenda of the Annual General Meeting of Shareholders to be held on 30 May 2012. Moreover, the Supervisory Board addressed 

the topic of the remuneration of the Board of Management. 

Committees of the Supervisory Board 

The Supervisory Board has set up a total of six committees to enhance the efficiency of its work. These committees prepare resolutions for the 

Supervisory Board and issues for discussion by the entire Supervisory Board. In as much as permissible under the law, decision-making powers of the 

Supervisory Board were delegated to the committees on a case-by-case basis. With the exception of the Audit Committee, the office of Chairman in 

respect of all committees is held by the Chairman of the Supervisory Board. The Supervisory Board was kept informed in its meetings about the work 

of the committees and their resolutions by the respective chairmen. 

Supervisory Board Chairman Manfred Nüssel and the Supervisory Board members Erna Kurzwarth, Albrecht Merz, Gunnar Metz and Gregor 

Scheller belong to the Audit Committee. The Chairman of the Audit Committee is Albrecht Merz. BayWa AG has therefore adopted the suggestion 

of the German Corporate Governance Code which proposes that the Chairman of the Supervisory Board should not hold the office of Chairman of 

the Audit Committee. The Audit Committee held two meetings in the reporting year. In the presence of the independent auditor, the Chairman of 

the Board of Management and the Chief Financial Officer, the committee discussed the separate financial statements of BayWa AG and the consolidated 

financial statements, the report of management on the company and the Group, the audit reports, as well as the proposal for the distribution 

of profit in its meeting on 25 March 2011. Members of the committee were provided with the respective reports and other audit reports and documentation 

pertaining to the accounts in good time. Other key areas of Audit Committee tasks were the assessment of the risk status and the current 

risk management system, particularly the early warning system for risks and the EDP system. Moreover, the results of the tender procedure for the 

selection of the independent auditor for 2011 were discussed, the statement declaring the independence of the independent auditor pursuant to 

Code Item 7.2.1 of the German Corporate Governance Code was obtained, and the audit fees determined. A resolution on a recommendation was 

drawn up for the Supervisory Board to propose Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft, Munich, to the Annual General Meeting of 

Shareholders as the independent auditor for the financial year 2011. 


199

200 


The meeting on 8 November 2011 dealt with the assignment of audit mandates and establishing the key audit areas in respect of the 2011 annual 

financial statements. 

In its meeting on 27 March 2012, the Audit Committee also consulted on the choice of the independent auditor for the financial year 2012 and 

recommended to the entire Supervisory Board that a proposal be put to the Annual General Meeting of Shareholders on 30 May 2012 in favour of 

appointing Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft, Munich. 

Supervisory Board Chairman Manfred Nüssel and Supervisory Board members Ernst Kauer and Gregor Scheller belong to the Board of Management 

Committee. The Board of Management Committee held two meetings in the reporting year. The Board of Management Committee concerned 

itself in particular with the recommendations for the Supervisory Board on the variable and fixed components of Board of Management member 

remuneration and on the renewal of the employment contracts of Board of Management members Dr. Josef Krapf and Roland Schuler. 

Supervisory Board Chairman Manfred Nüssel, Dr. E. Hartmut Gindele, Prof. Dr. h. c. Stephan Götzl, Dr. Johann Lang, Gunnar Metz, Ernst Kauer and 

Bernhard Winter belong to the Strategy Committee. The Strategy Committee met four times in the reporting year and concentrated mainly on the 

detailed preparation of Supervisory Board meetings. In addition, it discussed the company’s strategy as well as current projects in the company and 

investment projects. In an extraordinary meeting on 29 September 2011, the committee addressed the topic of the investment in Turners & Growers 

Ltd. Moreover, the acquisition of shares in Tecno Spot GmbH, Italy, was approved. In its meeting on 8 November 2011, the agreement to be signed on 

the purchase of shares in Turners & Growers as well as the hiving off of the DIY & Garden Centres Business Unit formed the focus of consultation. The 

Strategy Committee submitted the recommendation to the Supervisory Board to grant approval for these two strategic projects. 

Supervisory Board Chairman Manfred Nüssel and the Supervisory Board members Ernst Kauer, Otto Kentzler, Dr. Johann Lang, Gregor Scheller, 

Georg Fischer and Werner Waschbichler belong to the Lending and Investment Committee. The Lending and Investment Committee held 

two meetings in the reporting year. The committee monitors investment activities and reviews lending activities and exposures in line with the 

authorisations it has been granted. Beyond this, the committee dealt with the settlement of the 2010 investment budget and the investment budgets 

for 2011 and 2012. 

Supervisory Board Chairman Manfred Nüssel, Prof. Dr. h. c. Stephan Götzl and Dr. Johann Lang belong to the Nomination Committee. The committee 

is tasked with preparing the proposals for shareholder representatives on the Supervisory Board for election by the Annual General Meeting of 

Shareholders. As no Supervisory Board elections are currently imminent at BayWa AG, the Nomination Committee did not meet in the period under 

review. 

Supervisory Board Chairman Manfred Nüssel and the Supervisory Board members Ernst Kauer, Otto Kentzler and Bernhard Winter belong to the 

Mediation Committee, set up pursuant to Section 27 para. 3 of the German Codetermination Act (MitbestG). The committee did not have to be 

convened in the financial year 2011. 

Corporate Governance 

In an awareness of the important contribution made by Corporate Governance to the transparent and good management of the company, the 

Supervisory Board regularly deliberates on related matters. More information on Corporate Governance as well as the amount and structure of 

remuneration received by the Supervisory Board and the Board of Management can be found in the Declaration on Corporate Governance. 

The Board of Management and the Supervisory Board adopted the recommendations of the German Corporate Governance Code in the version 

dated 26 May 2010 with very few exceptions in its meeting on 9 November 2011. The Declaration of Conformity pursuant to Section 161 of the 

German Stock Corporation Act is included in the Declaration of Conformity pursuant to Section 289a of the German Commercial Code. It has also 

been posted on the company’s website at www.baywa.com under the Investor Relations heading. 

All members of the Supervisory Board participated in at least half of the Supervisory Board meetings held in the reporting year. 

Members of the Board of Management and of the Supervisory Board report any conflict of interest without delay to the Supervisory Board. In the 

financial year 2011, there were no conflicts of interest in respect of members of the Board of Management or members of the Supervisory Board. 



Separate financial statements and consolidated financial statements 

The separate financial statements of BayWa AG and the consolidated financial statements of the Group for the financial year 2011, as well as the 

management report on BayWa AG and on the Group, have been audited by Munich-based Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft, 

and were both approved without qualification. 

The Supervisory Board carefully examined the financial statements of BayWa AG, drawn up by the Board of Management in accordance with the 

German Commercial Code, and the consolidated financial statements prepared in accordance with the International Financial Reporting Standards 

(IFRS) and the additionally applicable standards set out under Section 315a of the German Commercial Code, as well as the management report 

on BayWa AG and on the Group in its meeting on 28 March 2012 and discussed them in detail in the presence of the external auditor and the 

Board of Management. The key points of the 2011 audits as defined by the Audit Committee were also extensively discussed. All audit reports and 

documentation pertaining to the financial statements were made available to all Supervisory Board members in good time. The Supervisory Board 

concurred with the findings of the financial statements audit in its meeting on 28 March 2012. The audit reports and the documentation on the 

financial statements were the subject of in-depth deliberation at a prior date by the Audit Committee in its meeting on 27 March 2012. The Audit 

Committee discussed the separate financial statements and the consolidated financial statements, the management report on the company and the 

Group, the audit reports, as well as the proposal for the distribution of profit in the presence of the external auditor in its meeting on 27 March 2012. In 

accordance with the conclusive findings of the Supervisory Board no objections were raised against the financial statements. The Supervisory Board 

therefore ratified the separate financial statements of BayWa AG and the consolidated financial statements of the BayWa Group on 28 March 2012, 

which are hereby adopted. 

The proposal of the Board of Management on the appropriation of profit available for distribution through paying dividend of €0.60 per share has been 

reviewed and approved by the Supervisory Board. 

During the Supervisory Board meeting on 28 March 2012, the external auditor also reported that there were no substantial weaknesses in the internal 

control system and the risk management system in respect of the accounting process. The Board of Management has thus taken all the appropriate 

measures to fulfil its obligations in this regard. 

Changes to the Supervisory Board and to the Board of Management 

In the reporting period, there were no changes to the Supervisory Board and to the Board of Management. The employment contracts of Board of 

Management members Dr. Josef Krapf and Roland Schuler were renewed for another five years respectively. 

The Supervisory Board thanks the members of the Board of Management, the employees as well as the employee representatives of BayWa AG and 

all Group companies for their work. Their dedicated commitment has once again contributed to BayWa AG’s success in the financial year 2011. 


On behalf of the Supervisory Board 


Chairman 


201

202 

Corporate Governance Report / Statement on Corporate Governance 

Corporate Governance Report / Statement on 

Corporate Governance 

Declaration of Conformity pursuant to Section 289a 

of the German Commercial Code (HGB) 

The Board of Management and the Supervisory Board of BayWa AG report on the management and supervision of the company in this declaration, 

drawn up pursuant to Section 289a of the German Commercial Code and Code Item 3.10 of the German Corporate Governance Code. The 

Declaration of Conformity has been made permanently available on the company’s website under the Investor Relations heading. 

The Board of Management and the Supervisory Board of BayWa AG are committed to good corporate governance. It is the conviction of the Board of 

Management and the Supervisory Board that responsible management of the company, geared to the long-term, in accordance with good transparent 

corporate governance, contributes to sustainably raising the company’s value and fostering the trust of investors, financial markets, customers, and the 

public at large. 

1 Declaration of Conformity pursuant to Section 161 of the German Stock Corporation Act (AktG) 

The Board of Management and Supervisory Board of BayWa AG submitted Declaration of Conformity pursuant to Section 161 of the German Stock 

Corporation Act on 4 August 2010. In the context of a regular reviewing of which recommendations under the German Corporate Governance Code 

are to be adopted by BayWa AG, the Board of Management and the Supervisory Board of BayWa AG amended the Declaration of Conformity on 

9 November 2011 as follows: 

The Board of Management and the Supervisory Board of BayWa AG declares that the recommendations of the “Government Commission on the 

German Corporate Governance Code” in the version dated 26 May 2010 (published in the electronic German Federal Gazette on 2 July 2010) has 

been and will be complied with, to the exception of the following: 

No postal votes – Code Item 2.3.3 sentence 2 GCGC 

In Code Item 2.3.3 sentence 2, the GCGC recommends that the company should also assist shareholders in the use of postal votes and with proxies. 

The Articles of Association of BayWa AG have not yet provided for the option of postal voting. In our view, postal votes have not yet been sufficiently 

tested, and there have been difficulties particularly in respect of ascertaining the authenticity of votes thus submitted. Moreover, BayWa AG 

already offers its shareholders the option of entrusting the exercising of their voting rights to a proxy appointed by the company. Shareholders 

therefore already have the possibility of submitting their votes before the day of the Annual General Meeting of Shareholders. Securing the rights of 

shareholders by having the additional option of postal votes would not ultimately serve to facilitate the process further. 

As, for the aforementioned reasons, the Articles of Association of BayWa AG do not yet provide for postal voting, the recommendation under Code 

Item 2.3.3 sentence 2 of the GCGC of supporting shareholders through postal voting has not been followed. 

Deductible under the D&O insurance for members of the Supervisory Board – Code Item 3.8 para. 3 GCGC 

In Code Item 3.8 para. 3, the GCGC recommends a deductible to be provided for when a Directors & Officers (D&O) insurance policy is taken out for 

members of the Supervisory Board. BayWa AG has concluded a D&O insurance on behalf of the members of the Supervisory Board which does not 

provide for a deductible in respect of its members. BayWa AG is not of the opinion that the motivation and the responsibility with which the members 

of the Supervisory Board discharge of their duties would be improved by having a deductible in the D&O insurance policy. 



Severance payment cap – Code Item 4.2.3 para. 4 GCGC 

In Code Item 4.2.3 para. 4, the GCGC recommends that, when Management Board employment contracts are concluded, care should be taken to 

ensure that, in the event of premature termination of a Board member’s activities without serious cause, payments made to the Board member, 

including supplementary benefits, do not exceed the value of two years compensation (severance cap) and compensate no more than the remaining 

term of the employment contract. The employment contracts of members of the Board of Management of BayWa AG do not include such a provision. 

The amount of any possible severance payment is part of an agreement to be signed upon termination of Board member activities and therefore 

depends on reaching an agreement with the respective member of the Board of Management. Even if such a contractual provision were to be 

included, a member of the Board of Management could nonetheless insist upon having the full scope of claims arising from the employment contract 

paid out and otherwise refuse to give his consent to the termination of his Board member contract. Moreover, BayWa AG is convinced that having 

such a clause is unnecessary as, even without it, the Supervisory Board will take sufficient account of the interests of the company in negotiations with 

the member leaving the Board of Management and not grant an excessive severance payment. 

Information on compensation received by the members of the Board of Management – Code Item 4.2.4 GCGC 

Contrary to Code Item 4.2.4 GCGC, the compensation of the Board of Management members was and is not itemised. Instead it is divided up into 

fixed and variable/performance-related components and disclosed annually in the Notes to the Consolidated Financial Statements. The relevant 

resolution has been passed by the Annual General Meeting of Shareholders in accordance with Section 286 para. 5 of the German Commercial 

Code and Code Item 4.2.4 sentence 3 GCGC. The compensation of Board of Management members has not been itemised as, in the medium term, 

this would lead to an levelling off of Board member compensation which would no longer take account of the performance of the individual Board 

members. 

No fixed age limit for the Board of Management and the Supervisory Board – Code Item 5.1.2 para. 2 sentence 3 and 

Code Item 5.4.1 para. 2 sentence 1 GCGC 

In the current versions of the bylaws applicable to the Board of Management and the Supervisory Board, and contrary to the recommendations in 

Code Item 5.1.2 para. 2 sentence 3 on the one hand, and Code Item 5.4.1 para. 2 sentence 1 GCGC on the other, there are no restrictions on age for 

membership in the Board of Management and the Supervisory Board. BayWa AG reviews the ability to perform and the competence of the members 

of its executive and supervisory bodies on an ongoing basis. Age alone is not indicative of the ability of a current or potential member of such a body to 

perform their duties. For this reason, BayWa AG does not consider fixed age limits, which also restrict flexibility in respect of personnel decisions and 

the number of potential candidates, expedient. 

Specification of concrete objectives for the composition of the Supervisory Board – Code Item 5.4.1 para. 2 

and para. 3 GCGC 

In the new version of the GCGC dated 26 May 2010, new recommendations were introduced under Code Item 5.4.1 para. 2 and para. 3 under which 

the Supervisory Board shall specify concrete objectives for its composition and, while considering the situation specific to the company, take into 

account the international activities of the company, potential conflicts of interest, an age limit to be specified for the members of the Supervisory 

Board and diversity. These concrete objectives shall, in particular, stipulate an appropriate degree of female representation. Recommendations by 

the Supervisory Board to the competent election bodies shall take these objectives into account. The Supervisory Board is investigating the issue of 

which concrete objectives are expedient for the composition of the Supervisory Board, particularly with regard to an appropriate degree of female 

representation. As the next regular elections to the Supervisory Board are only due at the Annual General Meeting of Shareholders in 2013, the 

Supervisory Board has as yet not formed a conclusive opinion, especially in view of the fact that the requirements specific to the company in relation 

to concrete objectives for the composition are likely to have changed by the year 2013. Accordingly, the Supervisory Board has to date refrained from 

specifying concrete objectives for its composition. 

Information on compensation received by members of the Supervisory Board – Code Item 5.4.6 para. 3 GCGC 

Contrary to the recommendation under Code Item 5.4.6 para. 3 GCGC, the compensation of Supervisory Board members (including remuneration or 

benefit paid by the company to members of the Supervisory Board for services personally rendered, in particular the rendering of advisory and agency 

services) is not itemised. Instead it is divided up into fixed and performance-related components and disclosed annually in the Corporate Governance 

Report. The information included in the Corporate Governance Report clearly shows the structure and the amount of compensation received by the 

Supervisory Board. BayWa AG considers this detailed information to be sufficient to satisfy the interest in such information of the capital market and its 

shareholders. 

Munich, 9 November 2011 


The Board of Management The Supervisory Board 


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204 


2 Management and control structure of the company 

The Board of Management and the Supervisory Board 

As a company with its principal place of business in Munich, Germany, BayWa AG is subject to the provisions laid down under German law. The 

executive and supervisory bodies consisting of the Board of Management and the Supervisory Board form the dual-tier management and control 

structure in accordance with the provisions under German stock corporation law. The Board of Management and the Supervisory Board work closely 

together in the interest of the company. Their joint goal is to ensure the company’s continued existence and sustained value. 

Board of Management’s duties and practices 

The Board of Management, which is currently composed of five members, is independently responsible for running the company, developing the 

corporate strategy, agreeing the strategy with the Supervisory Board and ensuring that it is implemented. It is responsible for the company’s annual 

and multi-year planning as well as for the preparation of the interim reports and the annual and consolidated financial statements. The Board of 

Management ensures that legal provisions, official rules and regulations as well as the company’s internal guidelines are observed, and it works 

towards the Group’s compliance with them. The Board of Management reports to the Supervisory Board regularly, promptly and comprehensively 

on all issues pertaining to planning, the development of business, the earnings, financial position and assets, the risk situation, risk management and 

compliance. The Supervisory Board is directly involved in all decisions of fundamental importance for the company. Furthermore, such decisions 

are subject to approval by the Supervisory Board. The Board of Management ensures that there is open and transparent communication within the 

company. 

The Board of Management manages the company’s business under its own responsibility. The principle of joint responsibility applies, meaning that 

the members of the Board of Management jointly bear the responsibility for the managing of the company. Each Board member is assigned certain 

tasks to be specifically handled under the allocation of duties plan (Geschäftsverteilungsplan). Certain decisions, especially those requiring the 

Supervisory Board’s approval or for which the Board of Management is responsible under the law or the Articles of Association, are reserved for the 

entire Board of Management under the bylaws. Moreover, a resolution must also be obtained from the entire Board of Management in respect of 

matters which have been submitted to the Board of Management by the Chairman or by a Board member. 

Meetings of the Board of Management take place at least once a month. They are convened by the Chairman of the Board of Management. He 

also sets the agenda and chairs the meetings. The Board of Management is quorate if all members have been invited and at least half of the Board 

members, including the Chairman, take part in deciding a resolution. The resolutions of the Board of Management are valid through a simple majority 

of votes cast. In the event of a tie vote, the Chairman shall have the casting vote. Upon instruction by the Chairman, resolutions can also be passed 

outside of meetings by way of votes cast in writing or by telephone. 

The Supervisory Board’s duties and practices 

The Supervisory Board of BayWa AG appoints the members of the Board of Management and advises and supervises the Board of Management 

in its management of the company. The Supervisory Board is made up of sixteen members. In accordance with the German Codetermination Act 

(Mitbestimmungsgesetz – MitBestG), it is composed in equal parts of representatives of the shareholders and of the employees. The Supervisory 

Board is composed of a sufficient number of independent members. Members are deemed independent if they have no business or personal ties 

to the company or to the Board of Management which could constitute a conflict of interest. Board member Albrecht Merz was – and still is – on the 

management board of a company that has business ties to BayWa AG. However, business with this company was always conducted under the same 

conditions as those with other parties (at arm’s length). The independence of the respective Supervisory Board member was, and is, therefore not 

affected by these transactions. No former members of BayWa AG’s Board of Management belong to the Supervisory Board. There were no changes to 

the Supervisory Board in the reporting year. 

A set of bylaws regulates the tasks of the Supervisory Board, in particular the internal organisation, the activities of the committees and the regulations 

governing approval by the Supervisory Board for decisions of the Board of Management. Meetings of the Supervisory Board take place at least once 

every quarter and, in addition, whenever necessary for business reasons. Meetings are convened by the Chairman, and if he is detained by the Vice 

Chairman. 



The Supervisory Board must also be convened if one of its members or the Board of Management requests it, stating the reasons. The Supervisory 

Board only has a quorum if eight members – including the Chairman – or twelve members take part in the meeting and in deciding on the resolution. 

Resolutions of the Supervisory Board or one of its committees passed in writing, by telegraph, telephone, electronic media or telefax are only 

permitted if the Chairman of the Supervisory Board or, if he is detained, the Vice Chairman has given the requisite instruction. Decisions generally 

require a simple majority. In the event of a tie vote, the Chairman of the Supervisory Board has a dual voting right in the second round if votes are cast 

equally again. 

The Supervisory Board meets without members of the Board of Management to the extent that this is necessary for independent discussion and 

decision. There is a standardised procedure for regularly reviewing the efficiency of the Supervisory Board’s work. BayWa AG has taken out a D&O 

insurance for the members of the Board of Management and the Supervisory Board which covers the personal liability risk in the event that financial 

damages are asserted against board members in the exercising of their duties. There is currently no deductible for members of the Supervisory Board 

(cf. reasons cited in the Declaration of Conformity above). In accordance with the provisions of the German Act on the Appropriateness of Executive 

Remuneration, BayWa AG has provided for a reasonable deductible on the D&O insurance taken out for members of the Board of Management. 

Committees of the Supervisory Board 

BayWa AG’s Supervisory Board has set up six committees of experts to enhance the efficiency of its work. The respective committee chairmen report 

regularly to the Supervisory Board on their committee’s work. For full details of the composition of each individual committee, please see the Report 

by the Supervisory Board. 

The Audit Committee concentrates mainly on the documentation of the independent auditor in respect of auditing the annual and consolidated 

financial statements and prepares them for adoption by the Supervisory Board. The committee also supervises the accounting process, the annual 

audit and the effectiveness of the internal control, risk management and internal audit systems. It checks the auditor’s independence, agrees on the 

key points of the audit and on the fees with the auditor. On 15 June 2011, the Annual General Meeting of Shareholders nominated Deloitte & Touche 

GmbH Wirtschaftsprüfungsgesellschaft, Munich, as the auditor for the financial year 2011. The Supervisory Board ensures that the committee 

members can act independently, and that they are familiar with and experienced in applying a special know-how associated with the application of 

accounting rules and the internal controlling procedures. The Audit Committee is made up of three shareholder representatives, the Chairman of the 

Supervisory Board, and two employee representatives. 

The Board of Management Committee concerns itself with personnel matters affecting the Board of Management, such as the content of board 

member contracts and the approval of sideline activities. The Board of Management Committee performs the preparatory work for the determination 

of the remuneration paid to the individual Board of Management members. The committee is composed of the Chairman of the Supervisory Board as 

well as one shareholder representative and one employee representative. 

The Strategy Committee is mainly concerned with the preparation of Supervisory Board meetings. Moreover, the committee monitors and supervises 

the company’s strategic orientation as well as the implementation of current company projects. It is composed of the Chairman of the Supervisory 

Board, three shareholder representatives and three employee representatives. 

The Lending and Investment Committee is concerned with the financing measures requiring approval by the Supervisory Board and supervises 

the investment activities. It is composed of the Chairman of the Supervisory Board, three shareholder representatives and three employee 

representatives. 

The Nomination Committee is tasked with preparing the proposals of the Supervisory Board for the election of shareholders representatives to the 

Supervisory Board by the Annual General Meeting of Shareholders. It is composed of the Chairman of the Supervisory Board and two shareholder 

representatives. 

Under the German Codetermination Act, the Mediation Committee, anchored in the law, only meets if, during the voting process on the appointing 

or dismissal of a member of the Board of Management, the required two-thirds majority of the votes by the Supervisory Board is not attained. It is 

composed of the Chairman of the Supervisory Board, one further shareholder representative and two employee representatives. 

The committees’ practices are set out in the Articles of Association and in the bylaws of the Supervisory Board. Furthermore, the Supervisory Board 

may entrust one or more of its members with special control functions. More information on the activities of the Supervisory Board and its committees 

in the financial year 2011 can be found in the Report by the Supervisory Board. The names of the members belonging to the various committees are 

also listed there. 


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206 


Shareholders and the Annual General Meeting of Shareholders 

The organisation and execution of BayWa AG’s Annual General Meeting of Shareholders is carried out with the aim of informing all shareholders 

swiftly and extensively before and during the event. All shareholders listed in the share register (Aktienregister) and who have duly registered 

in good time are entitled to participate. BayWa AG offers its shareholders the possibility of having their vote exercised in accordance with their 

personal instructions by a voting proxy appointed by the company. The Annual General Meeting of Shareholders decides, among other things, on 

the appropriation of profit, the discharge of the Board of Management and Supervisory Board as well as the nomination of the auditor. Decisions on 

changes to the Articles of Association and on measures that may change the share capital are exclusively reserved for the Annual General Meeting 

of Shareholders, to the exception of the use of authorised capital by the administration. The share capital of BayWa AG is divided into shares with 

restricted transferability (approximately 96%) and registered shares (approximately 4%). Transferring registered shares with restricted transferability 

is formally subject to the Board of Management’s consent. However, in the past approval has never been withheld. Each share of BayWa AG carries 

equal voting rights and confers the same dividend entitlement. The company therefore applies the “one share, one vote, one dividend” principle. 

Securities transactions by the Board of Management and the Supervisory Board (Directors’ Dealings) 

According to Section 15 of the German Securities Trading Act, the members of the Board of Management and the Supervisory Board, and persons 

close to them, are required by law to disclose the acquisition and sale of shares in BayWa AG or financial instruments related thereto if the value of 

such transactions equals or exceeds an amount of €5,000 in a given calendar year. This also applies to certain employees with managerial functions 

(executive managers, for instance). In the financial year 2011, BayWa AG did not receive any notifications on securities transactions conducted by the 

Board of Management and the Supervisory Board in BayWa’s shares (ISIN: DE 0005194062/securities identification number 519 406). 

Shareholdings by the Board of Management and the Supervisory Board 

As per 31 December 2011, the number of shares held in BayWa AG by members of the Board of Management and the Supervisory Board came 

to less than 1% of the shares issued by the company. There were therefore no holdings requiring reporting under Code Item 6.6 of the German 

Corporate Governance Code. 

Avoidance of conflicts of interest 

Under the bylaws of the Board of Management, its members are obliged to disclose any conflicts of interest to the Supervisory Board without delay 

and to inform the other members of the Board of Management thereof. Under the bylaws of the Supervisory Board, its members must disclose any 

conflicts of interest, particularly those that could occur due to consultancy or board functions at customers, suppliers or lenders or other business 

partners, to the Supervisory Board without delay. Significant conflicts of interest in the person of a Supervisory Board member which are not of a 

temporary nature should lead to the termination of the mandate. In the recently completed financial year 2011, there were no conflicts of interest in 

respect of the members of the Board of Management or of the Supervisory Board in the exercising of their duties on behalf of BayWa AG. 

Remuneration of the Board of Management and the Supervisory Board 

As regards the remuneration of the Board of Management and the Supervisory Board in the financial year 2011, we refer to the Remuneration Report 

set out below which is part of the Management Report on the Group. 

Additional information on management practices 

BayWa AG’s Code of Ethics lays down principles under a code of conduct pertaining to information, business partners and the property of BayWa AG. 

The Code of Ethics is a guideline binding on all employees. In addition, an internal control system has been set in place to ensure compliance with the 

law, statutory provisions and internal guidelines as well as to avoid actions detrimental to business, which also includes prevention, monitoring and 

intervention. Furthermore, the employees have the option of applying to the external legal council mandated by BayWa AG to serve as an ombudsman 

in the event of occurrences in the company which do not comply with the law or grievances in cooperation with business partners/companies. 

In order to avoid breach of regulations against the prohibition or insider trading pursuant to Section 14 of the German Securities Trading Act, the 

company has all persons who are deemed insiders under the legal provisions confirm in writing that they were informed about all relevant statutory 

provisions governing trading in the shares of the company. All persons who, owing to their activities and authorisations, may have access to potential 

insider information are listed in a groupwide Insider Register. The compliance officer monitors the regular keeping of the Insider Register. The Code of 

Ethics has been made publicly available on the company’s website at www.baywa.com. 



3 Other aspects of good corporate governance 

Communication and transparency 

BayWa AG communicates regularly and promptly on the development of business as well as on its earnings, financial position and assets. In order 

to guarantee an ongoing exchange of information with the capital market, the company holds regular events as part of its investor relations activities 

featuring the Chief Executive Officer and Chief Financial Officer for analysts and institutional investors in the form of road shows and individual 

meetings. Press conferences and conference calls with analysts on the business performance are held every quarter. The annual results are released 

at an Annual Results Press Conference and at an analysts’ meeting. All new information disclosed to financial analysts and similar parties in the 

context of the aforementioned investor relations activities is also made available to the shareholders without delay. All relevant presentations and 

press releases are promptly published on the website of BayWa AG. BayWa AG places great importance on ensuring that all shareholders are treated 

equally with regard to information. 

The dates of the main recurring publications (inter alia the annual report and interim financial reports) and the date of the Annual General Meeting of 

Shareholders are published in the financial calendar in good time. Current developments are reported in press releases and, if necessary, in ad-hoc 

releases. All information is also made accessible on the company’s website under www.baywa.com. 

Responsible action and risk management 

The aim of risk management at BayWa AG is to identify the risks of entrepreneurial action at an early stage and evaluate them. Risk management is 

therefore an integral part of the company’s planning and management and control processes. The internal management and control, risk management 

and audit system is developed by the Board of Management on an ongoing basis and adjusted to changes in the environment. Parts of the internal 

management and control and risk management system for the accounting processes are examined by the external auditor. More information on the 

structure and the processes of risk management is included in the Management Report. 


207

208 

Remuneration Report 


The remuneration report is part of the Management Report on the Company and explains the system of remuneration for members of the Board of 

Management and the Supervisory Board. 

Total remuneration of the Board of Management 

The remuneration system, including the main contractual components, is reviewed by the Supervisory Board once a year and adjusted if necessary. 

Since 1 January 2010, the remuneration of members of the Board of Management has comprised an annual fixed salary, a short-term variable 

component (annual bonus) and a long-term variable component (known as the bonus bank). The ratio of fixed to variable short-term remuneration 

and long-term variable remuneration is roughly 50 to 20 to 30 based on full (100%) achievement of goals. The non-performance related component 

comprises an annual fixed salary and benefits, such as the use of a company car and contributions to accident and health insurances. Short-term 

variable remuneration takes the form of an annual bonus. The amount of this bonus depends on the extent to which objectives, determined by the 

Supervisory Board and geared, on the one hand, to the successful development of the company’s business (earnings before tax) and, on the other, to 

individually agreed goals, are achieved. If the targets are achieved, the agreed bonuses are paid out in full. If the targets are exceeded, the bonus will 

be increased but only up to a maximum amount (cap) of 150%. If the targets are not fulfilled, the bonus will be reduced proportionately. Both negative 

and positive developments are therefore taken into account in calculating short-term variable remuneration. 

The long-term variable component takes the form of a so-called bonus bank. The bonus bank will be supplemented or charged on a yearly basis 

depending on the extent to which objectives, linked to the success of the company (earnings before tax) and determined by the Supervisory Board 

for three years in advance, have been achieved, overachieved or underachieved. If objectives are overachieved, the amount which can be transferred 

to the bonus bank is capped at 150% of the target figure. If there is a credit balance on the bonus bank, one third will be provisionally paid out per year 

to the respective member of the Board of Management. If, owing to payments made in previous years or a charge reducing the bonus bank, there is 

a negative balance on the bonus bank, the respective Board members are obliged to pay back the provisional payments made in the two preceding 

years. Both negative and positive developments are therefore also taken into account in calculating long-term variable remuneration. Alongside the 

agreed cap on both components of remuneration, there is also a cap imposed for extraordinary developments. 

In addition, there are pension commitments for the members of the Board of Management. These commitments are based partly exclusively on 

the most recent fixed salary (5% or 30%), and partly on the number of years of service to the company (with increases limited to 35% and 50% 

of the salary most recently received). The retirement age has been set at 65 years (full year). As per 1 December 2011, obligations from pension 

commitments were partly transferred to an external pension fund in the form of an earned entitlement. Running payments made to the pension fund 

are included in the overall remuneration disclosed for the Board of Management. 

There are no commitments in the employment contract of the Board members if service to the company is prematurely terminated. There are also 

no Change of Control clauses. 

The total remuneration of the Board of Management comes to €5.238 million (2010: €7.281 million); of this amount €2.268 million (2010: 

€2.522 million) is variable. Contributions amounting to €0.402 million (2010: €0.325 million) were paid in benefits after termination of the 

employment contract (pensions). 

The remuneration of the Board of Management is not itemised. Instead it is divided up into fixed and variable/performance-related amounts 

and disclosed once a year in the Notes to the Consolidated Financial Statements (reason given in the Declaration of Conformity). The relevant 

resolution was passed by the Annual General Meeting of Shareholders in accordance with Section 286 para. 5 of the German Commercial Code 

on 18 June 2010 (Code Item 4.2.4). For more information on the remuneration, reference is made to the Separate Financial Statements and the 

Consolidated Financial Statements. 



Remuneration of the Supervisory Board 

The remuneration of the Supervisory Board is based on the responsibilities and the scope of tasks of the members of the Supervisory Board as well on 

as the Group’s financial situation and performance. 

Since 1 January 2010, members of the Supervisory Board have received fixed annual remuneration of €10,000, payable at the end of the year, plus 

variable remuneration of €250 for each cash dividend portion of €0.01 per share approved by the Annual General Meeting of Shareholders which 

is distributed in excess of a share in profit of €0.10 per share. Variable remuneration is due and payable at the end of the Annual General Meeting of 

Shareholders which has passed a resolution on the aforementioned cash dividend portion. 

The Chairman of the Supervisory Board receives three times the amount and the Vice Chairman twice the amount of remuneration paid as described 

in the paragraph above. Additional fixed remuneration of €2,500 is paid for committee work. The chairmen receive three times the respective amount. 

Supervisory Board members who serve on the Supervisory Board and/or its committees for only part of the financial year will receive remuneration 

on a proportionate basis. 

In addition, they are reimbursed for their expenses and value added tax which falls due during their activities as member of the Supervisory Board 

or its committees. Moreover, Supervisory Board members will be included in any D&O insurance taken out in the interest of the company covering 

personal liability in an appropriate amount. The company pays the insurance premium. 

The total remuneration of the Supervisory Board comes to €0.538 million (2010: €0.463 million), of which €0.250 million is variable (2010: 

€0.192 million). 

Disclosure of remuneration paid to the members of the Supervisory Board in the Notes to the Consolidated Financial Statements has not been 

itemised (reason given in the Declaration of Conformity). 


209

210 

Imprint 

Project management and coordination 

BayWa AG, Munich 

PR/Corporate Communication 

Text 

BayWa AG, Munich 

Finance/Investor Relations 

PvF Investor Relations Peters von Flemming & Partner, 

Frankfurt am Main 

Translation 

Diana Polkinghorne 

DP Business & Financial Translations 

Concept and design 

Strichpunkt GmbH, Stuttgart / Berlin 

www.strichpunkt-design.de 

Image sources 

Thomas Dashuber (photos of the Board of Management), 


Printing and binding 

Druckhaus König, Munich 

Imprint 

For more information please contact 


Investor Relations 

Arabellastr. 4 

81925 Munich 

Germany 

Telephone +49 (0)89 9222-3887 

Telefax +49 (0)89 9212-3887 

e-mail investorrelations@baywa.de 

BayWa website: www.baywa.de; www.baywa.com 

© BayWa AG, Munich, 14282/5/2012 

Language versions 

This annual report is available in German and English. Only the German 

version is legally binding. Both versions can be viewed/downloaded from 

the company’s website under www.baywa.de or www.baywa.com. 

The paper used for this annual report has been certified by the FSC. 

By purchasing FSC products, we support responsible forest management 

verified according to the stringent social, ecological and economic criteria 

of the Forest Stewardship Council. 


29 March 2012 

Annual Results Press Conference 

BayWa Building, Munich • 10.30 a.m. 

30 March 2012 

Analysts’ Conference 

Frankfurt am Main • 11.00 a.m. 

10 May 2012 

First Quarter Results 

Press release 

10 May 2012 

Analysts’ Conference Call 

on the First Quarter 

2.00 p.m. 

30 May 2012 

Annual General Meeting 

of Shareholders 

ICM, Munich Trade Fair Centre • 10.00 a.m. 

Financial Calendar 

Dates in 2012 

9 August 2012 

Press Conference on the 

First Half-Year/Second Quarter 


9 August 2012 


on the 

First Half-Year/Second Quarter 

2.00 p.m. 

12 November 2012 

Press Conference on the 

First Nine Month/Third Quarter 


12 November 2012 


on the 

First Nine Month/Third Quarter 

2.00 p.m.


Arabellastr. 4 

81925 Munich 

Germany

BayWa AG Annual Report 2011

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