12.08.2003 – 18:46

BayWa AG

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

Disclosure announcement transmitted by euro adhoc. The issuer is
responsible for the content of this announcement.

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

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

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

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

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

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

WKN 519 406; DE 0005194062

end of announcement        euro adhoc 12.08.2003

Further inquiry note:

Lothar Schönberger
Tel.: +49 (89) 9222 3692
E-Mail: presse@baywa.de

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

Original content of: BayWa AG, transmitted by news aktuell