BayWa Group Strategy

Transcription

1 BayWa Group Strategy

2 Core competencies and assets BayWa has a unique selling proposition in its core territory thanks to close access to its customers combined with a high degree of knowledge of products and markets, trading expertise and logistics infrastructure Assets Coverage in BayWa s core territory through broad-based local structure (USP) Access to regional and local customers for collection and sale Access to customer needs in rural areas (product and market knowledge) Expertise in relevant markets in connection with logistics structures Product and market knowledge Trading expertise Logistics structures Core competencies Access to suppliers (some exclusive) for selling products Range of product-relevant services (drying, workshop, ) Page 2

3 Challenges: Agriculture Segment Growing demand for primary materials, market liberalisation and consolidation are increasing the demands on providers efficiency and performance A constantly growing world population, diverse new ways of using agricultural produce, a higher level of education and increasing prosperity worldwide are leading to increased demand for primary materials and an increasingly fierce battle for resources Competition for resources calls for more sourcing possibilities Demands on providers efficiency and performance are increasing along with the liberalization of markets and consolidation among customers Agricultural trading is an increasingly global business, market participants act globally Internationalisation of agriculture markets is making access to and use of sourcing markets, trading centres and transport routes (ports, rails, inland waterways) into a basic requirement both for international trade and for serving regional customers The right infrastructure for trade flows is a core asset in international competition Any company that doesn t (yet) have logistics infrastructure must develop it quickly to remain competitive internationally Securing commercially viable structures is the main task of responsible management Page 3

4 Challenges: Energy Segment Changing demands for energy as well as economic and environmental assessment of sources of energy are requiring adjustments to product and services offer Energy demands, use and availability are subject to constant change. Providers (of coal and oil, for example) have always had to adjust to this change to seize market opportunities and secure stable business Adjusting to changes in market conditions is a part of business operations Increased energy efficiency and changes to installed heating technology are leading to stagnating markets that offer fewer prospects. However, they also offer a greater share of volume despite stiffening competition in the future The market has opportunities resulting from consolidation to increase market share Increased environmental awareness in connection with developing technology and risk awareness is increasing the demand for renewable energies and opening up new markets Energy providers must react to these changes and create offerings The market for new energies is changing providers previous role in the value chain while making it necessary and offering the opportunity to tap into new market segments Energy trading companies must focus on enabling (trading in technology and systems) Page 4

5 Challenges: Building Materials Segment Developments among providers are leading to highly fragmented markets with high competitive pressure (i.e. prices) and call for optimisations to offerings and structures Reduced market volume on account of declining new building activities, growing competition and increasing price transparency is leading to increasingly fragmented markets and an increase in price competition for customers, especially in the B2C segment Increasingly cutthroat competition Cutthroat competition offers opportunities for providers with a unique selling proposition: specialists, local monopolies and national providers with critical mass that determine the outcome of price competition through coverage, awareness and economies of scale Need for clear positioning as a price or quality leader Optimal market positioning requires a critical look at your own market position and opportunities while identifying where action needs to be taken to secure profitability and the Segment s sustainability Weighing alternative courses of action towards partnership models and/or specialisation Putting an end to being ordinary: specialisation that consistently uses and focuses on core competencies while taking know-how and access with regard to customer and product groups into consideration Focus on building materials business and developing into a specialised generalist Page 5

6 Challenges: Group-wide Current developments are having an influence on fields of action and require adjustment to fit a changing environment to avoid risks and take advantage of opportunities Risk management Transparency and shorter product cycles are leading to more rapid changes in the environment and the need to deal with risks in a structured manner in order to make the best possible decision quickly Globalisation of flow of goods Increasingly international flow of goods, global sourcing and sales markets Digitalisation of private, business and professional life The use of digital applications is becoming an increasingly important part of professional and private life, and is seen as the status quo. Companies must be prepared for this process and live up to the associated demands, leading to new opportunities Branding as a medium for identification and values (a world full of brands) Brand positioning and awareness is becoming increasingly influential for purchasing decisions, choice of employer and business partnerships Personnel as an important factor in managing business and customer relations Demographic developments and the specialisation of business are making qualified personnel an important and competitive key factor Page 6

7 Strategic directions Internationalisation and profitable growth Development/expansion of the renewable energies business Development/expansion of digital services (e-commerce) Uniform Group corporate identity (family brand strategy) Realignment of key segment areas Managing challenges and change with the aim of implementing entrepreneurial measures that contribute to making sustainable and better use of existing markets and developing new market opportunities. Page 7

8 Strategic directions status in 2012 Internationalisation and profitable growth Acquisition of New-Zealand-based fruit trader Turners & Growers in 2011 Acquisition of German agricultural trader Bohnhorst in 2012 Acquisition of Dutch international grain trader Cefetra in 2012 Development/expansion of the renewable energies continual development of r.e. since 2009 Business internationalisation (in Spain, USA, etc.) Development/expansion of digital services (e-commerce) Project preparation for developing Group-wide e-commerce offerings (launch scheduled for 2013) Uniform Group corporate identity (family brand strategy) Development and approval of a family brand strategy by Corporate Marketing Realignment of critical segment areas Carve-Out of the DIY & garden centre segment into a joint venture with Hellweg in 2011 Restructuring of the Building Materials Segment Exploration of options for entrepreneurial action in the conventional energy unit Page 8

9 BayWa Group in 2012 Ein A globally regional active agierendes company Unternehmen, that is committed das dem to its Kunden customers im ländlichen in rural areas Raum (Kerngebiet (regionally, nationally BayWa) verpflichtet and internationally). ist. Ein A trading Handelsunternehmen, company with a focus dessen on Wertschöpfungsfokus creating value by trading im Handel in products von and Produkten offering sowie trading-related dem Angebot services an handelsnahen to customers, Dienstleistungen along with services für resulting den Kunden from liegt. changes to market conditions (such as project trading) Ein Mischkonzern, mit den Kernsäulen A conglomerate Agrar with the following main pillars: Energie Agriculture (klassisch) Bau Energy (Baustoffe (conventional & BGM) and renewable) Building Materials (building materials) Eine Aktiengesellschaft mit Börsennotierung und genossenschaftlichem Hintergrund An Aktiengesellschaft (M-Dax-listed company) with roots as a cooperative Page 9

10 Challenges and core objectives Ensuring independence Preserving shareholders interests: BayWa should remain a worthwile investment for its shareholders in the years to come and beyond Ensuring appealing returns Ensuring sustainability Profitable and sustainable business in the long term in all current and new fields of business Generating a consolidated result of 250 million (EBIT) in 2014 Responsible corporate conduct as a trustworthy partner for employees, customers, relevant stakeholders and society in harmony with the principles of the company mission. Page 10

11 Strategic directions Strategic directions have been consistently followed and continue to be valid, adjusted to fit the results of our work over the past few years Consolidation of business activities Operating cooperation between new companies to take advantage of synergies and opportunities on the basis of trust and mutual understanding Consolidation and further expansion of the renewable energies business Realignment of key segment areas Effective risk management to secure business fields Synchronisation of processes to make use of best-practice models (simplification, manageability, increasing efficiency, reducing costs) Internationalisation and profitable growth while taking advantage of opportunities resulting from expanded international possibilities for action Development/expansion of digital services Development of uniform Group corporate identity (expanded family brand strategy under consideration of [international] interests) Page 11

12 Strategic directions Specifics by Segment (1/3) Agriculture Segment (Agriculture) Operating cooperation between Cefetra and Bohnhorst to take advantage of synergies and opportunities on the basis of trust and mutual understanding (Dreiklang project) Profitable, general growth powered also by developing new markets (e.g. Eastern Germany), new services and additional trading products Effective risk management to secure international grain trading activities Continued development and increased efficiency in local structures to make use of bestpractice models (simplification, manageability, increasing efficiency, reducing costs) Agriculture Segment (Fruit) Operating cooperation with Turners & Growers to take advantage of synergies and opportunities on the basis of trust and mutual understanding (setting the pace for worldwide consolidation in fruit trading) Synchronisation of processes (e.g. logistics processes/supply chain) to make use of bestpractice models (simplification, manageability, increasing efficiency, reducing costs) Evaluation of international sales markets (opportunities for tapping into markets on a shared basis) Page 12

13 Strategic directions Specifics by Segment (2/3) Agriculture Segment (Agricultural Equipment) Profitable, general growth powered also by expanding sales and marketing rights and offering additional products and services (especially in workshops) Expansion of digital sales channels (eshop, TECparts) Continued development of an integrated used-machinery strategy to secure the outflow of old machines (creating demand for new machines and business models) Evaluation of appropriate national concepts in cooperation with manufacturers Energy Segment (renewable) Internationalisation to make use of opportunities and diversify risks Consolidation of existing structures, businesses and brands Expansion of the product portfolio by entering into marketing models Page 13

14 Strategic directions Specifics by Segment (3/3) Energy Segment (conventional) Evaluating options for entrepreneurial action to expand market share while maintaining entrepreneurial leadership in stagnating and shrinking markets Evaluating options for partnerships to develop new product possibilities and sustainable market cultivation Restructuring to reduce costs and optimise the sales and logistics structure Building Materials Segment Restructuring: Optimising structures in sales, purchasing and logistics Strengthening sales and the outflow process through consistent management systems Concentration of decentralised operating structures to form regional, competent units Streamlining the supplier portfolio and creating strategic partnerships Increasing market share in existing and affiliated markets Developing into a specialised generalist by actively shaping the network between industry, trade and the skilled crafts and trades Expanding the service portfolio for our customers Education campaign with a special focus on sales personnel to become a solution provider Page 14