Good day, ladies and gentlemen, and welcome to the BayWa analyst second quarter 2021 conference call. At this time, I would like to turn the conference over to Josko Radeljic. Please go ahead. Good morning, everybody, and welcome to our analyst conference on the results of the first half year 2021 of BayWa AG. As you probably have recognized, we have disclosed our group EBIT figure roughly two weeks ago, and as a consequence of this good result, we have also raised our expectations for the full year 2021. Today, Professor Lutz, CEO, and Andreas Helber, CFO, will provide you a deeper insight into the development of each segment and explain what has driven this good result. Let me finish my intro with the usual remark that all relevant documents have been sent out this morning. Otherwise, you can download it, and at the end of the presentation, we will be happy to take your questions. I hand over now to Professor Lutz. Good morning, everyone on the phone. Welcome to our news conference. No, what is it? Analyst. Analyst conference, sorry. News conference is later. Analyst conference for the first half year. As you have acknowledged, hopefully already, is that we have excellent record figures for the first six months. It's the best half-year report we ever provided to the capital market and to our investors and stakeholders. Nevertheless, a fundamental remark from my side, this is not possible, unfortunately, to make a calculation on the basis of 140 times two plus XYZ means a much, much higher result or more than double than 2020. In so far, it's important for you to understand what are the reasons for this excellent performance. We start with the overall picture. I just call the page, and if I turn the page and tell you the figure where I am so you can follow me, hopefully. As you see, we have a revenue increase of 13%. What is the reason for that? It's volume driven in some parts, but also price driven regarding the commodity prices, for instance, where we have a positive development over the last months. We have a much higher revenue in the energy business, especially renewable energy. We'll see that later on because, as always, r.e. is one of the key contributors to this excellent performance and building materials as well, due to the building boom which we are faced with here in Central Europe and even agriculture has on higher revenue. Bottom line, we increased the EBIT from EUR 53.8 million- EUR 144.6 million. The reason for that is especially that we sold 140 MW projects from BayWa r.e. in the agriculture sector. The domestic and international agri trade benefits from the price increase over the last months. I wouldn't speak about a boom situation which we have in the commodity business, but the price development was very pleasant for us. The building materials benefits from the construction activity, our joint ventures, which we have with constructors, and we have a much higher level than in the past. As you know, we are moving and transforming this company to a more and more project and solution-oriented business model, and the building material is part of that. Finally, of course, the coronavirus vaccination project, where we were one of the 10 companies in Bavaria, especially, but also in Germany and several other countries where we had very successful campaign. I turn to page five to see the comparison of Q2 2021 on a multi-year comparison. I turn to page six, and here you see the overall group result is EUR 1,446. The normal one is 50-something. We saw already in the first half-year a negative situation, a loss situation. Please don't expect in the future that we increase year by year our half-year result. In this EUR 1,446 is renewable energy included. Last year, for instance, we had still a loss situation, and this year it's positive. If you turn to page eight, the overall market situation in renewable energy on the left side of this page, you see we have an increase of 3.1% expected global investments in renewable energy in 2021 from $121 billion- $125 billion, more or less. We have more or less a flat development in the wind onshore energy business, and this has to do with the more and more also for us, very important repowering projects. That's one thing. The other thing is China. We do not have really an overview what China is going to do. As you know, the new five years plan, China decided, the government decided to invest really multi-billions in sustainability projects. This means, of course, especially in the renewable energy sector, increasing. That's very important for us. The market expectation for the solar facilities, and we are very well positioned in this business, and we'll see that a little bit later. On the right side, last year, we had a record high in the conventional energy sector, especially due to the high demand in the heating oil. Now we have, let me say, the level of performance is a little bit lower as we expected it, but better as we feared it, to be honest. This has to do with the increased Brent crude oil price, of course. On the other side, due to the high stock filling in the previous year, the end customer's demand is not as high as last year, which is a quite normal development. Coming back to that later. I turn to page nine. Here you see the renewable energy business increase in the revenue of EUR 1.3 billion. If you are following BayWa and BayWa r.e. and my comments on all these developments over the last years, it's always the same. The key aspect is the performance. Bottom line, last year negative, this year EUR 50 million. This could be also different for the first half year in 2021. Due to the fact that we sold in Sweden, in Germany, in France, and even in Japan, solar or wind facilities. We had this great performance in the first half year. Interesting enough, also our trading business with PV components has a plus of 57%, and inverters, a plus of around about 38%. The trading business is really significant also for this performance in the first six months. By the way, we finalized an acquisition. We took over the German project developer, NWind, with 60 wind projects, so around about 700 MW. In France, the French Enerpole SAS with a project pipeline of 600 MW. You know that we are always looking for transactions, and it's not important how many people and so forth, because we are fighting for people, that's clear. Bottom line, the most important thing is to fulfill our project pipeline with wind and solar opportunities for the future. In the first six months, we increased our overall pipeline of around about 1 GW. The overall pipeline, Andreas Helber, is 15 GW. Meanwhile, the last conference, if you remember, we had around about 12 GW-13 GW. Now we have 15 GW in the pipeline. This means over the next years, we know exactly what's going to happen in this business. Turn to page 10. The conventional energy revenue is slightly lower, 2.5% as last year. As consequence, and I explained that already, EUR 6.5 million, the EBIT, and this has to do with the volume downturn in revenues and earnings due to the heating oil situation in the market. The positive remark, the wood pellets has an increase of 37% and the lubricants are back on track. If you remember last year, we had a -8%, now +13.2% on a year-to-year basis in comparison. That's, I think, extremely important. We speed up with our BayWa Mobility Solutions company. We opened two new LNG fuel stations in Germany. We have now seven. We are also moving the LNG business more and more to the green LNG business here in Germany. Of course, the contribution bottom line is not really significant at this point in time. We come to the agriculture sector. Turn to page 12, please. The market development in the commodity, you see here the Matif Wheat and the Chicago Board of Trade Corn that we saw over the last months from the tendency, an increase of prices. We had in May a higher volatility, which is positive for our Cefetra business. This year, the agri-commodity is much more in favor for our business. The right side, you see the global grain balance without rice. As always, interesting is that the stock has been reduced in the last period, 2020- 2021, around about - 35 million tons. This is positive fundamentally that we see more increase of prices in principle, this can be changed within a few hours, as you know. For 2021, 2022, the expectation is 9 million tons increase of the storage. Here, I would make a big question mark due to the weather situation. It's not only here in Central Europe where we have this rainy weather conditions, or even in other countries and areas. Either we have rain or we don't have enough water supply. The climate change and the climate circumstances are more and more affecting our business. We turn to page 13. The input resources was last year a little bit under pressure, as you know. Now we have higher energy costs. The producer prices led to a price increase for fertilizers, especially. The EU, European Union ban to import potash salt from Belarus is an additional price driver. Finally, bottom line, the business has been developed for us very positively. I'm coming back to that in a moment. Interesting enough, again, the agriculture equipment, you see here an increase for the new tractor registrations in Germany, which is an interesting indicator for our business development in the machinery business of 15.4%. So far, this business unit is in a very good shape. The market circumstances are still positive. The farmers are investing in Central Europe. We do not see yet the end of this story. The global produce business, one of our key investment pillars, as you know, is performing a little bit lower as last year. Nevertheless, you see here, on the right side bottom, the price development for the European apple harvest, and it's around about EUR 0.77, EUR 0.74 per kilo, which is an very good development. In New Zealand, the apple production, the volume, is below the previous year due to the hail damage and labor shortage. This has to do that due to the corona crisis and the ban, the government doesn't allow that harvest workers are coming from Pacific Islands to New Zealand. So far, from the process point of view, we had here some problems. Nevertheless, we stick to the budget. Germany, very good development due to the pricing, but we have a poorer quality and smaller quantities also due to heavy rainfall and all these negative circumstances. Bottom line, the prices are above average. We turn to page 14. Here you see excellent performance of our Cefetra group in the Netherlands. In Rotterdam, increase of 14.5% in revenue, EUR 2.5 billion and EUR 20 million EBIT. The reason for that is, first of all, the volatilities led to a higher margin. Secondly, the development of the prices, and the demand of the customers, are aligned. In other words, we have higher volumes in commodity traded as we normally do and want to do, due to the risk which is involved in this type of business model. The most important message is that our specialty strategy, the business with specialties like pulses, what else? Organic niche products and so forth, and vitamins and minerals for the compound feed industry in Europe is in an excellent shape. We are really more and more a specialty company for either compound feed industry or also for other industries where we can provide to our customers niche products. This is a global business. It is much more stable as the pure commodity business. So far, the decision which we have taken a few years ago to change our business model and become a specialty company was the right thing to do. We turn to page 15. This is very interesting because here you have the consolidation of Germany, Austria, and some Eastern European countries. You see EUR 2.1 billion revenues, a little bit higher, 7.1% as last year, and nearly EUR 40 million profit for the first half year 2021. What is the reason for that? We benefit, as well as Cefetra, by the way, from the rising grain prices. We had a good marketing season 2020 for the 2020 harvest, and we have some excellent profits. Some of you would say windfall profits. Of course, this has to do with an excellent performance of the management, the fertilizers, the stock levels we had on stock, we bought for a much lower price as we had sold it. In between, we call this margin, and this is a profit where we are living from. The positive seed sales trend is also with 12.9% part of this success story and the field stuff with + 8.2%. In other words, here you see a much better situation also in Germany as we had over the last years. This does not necessarily mean that we are through the restructuring process we are in the middle of. We are closing sites, shops, we are reducing our capital employed, we are reducing the capital invested in sites, silos, harbor sites, and so forth. So far, we are in the middle of the restructuring process, and it will take another two years, as I said, during the last meeting. We turn to page 16. Here you see that the machinery business, revenue-wise and EBIT-wise, is in a very good shape. Of course, we are - 7.5% on the EBIT, but this has also to do with the chip crisis. 1,200 tractors, for instance, of Fendt are still in the manufacturing plant, cannot be delivered at this point in time. Workers and specialists from BayWa are supporting AGCO so far. To go through the final assembly process successfully, it will take a little bit longer as we thought last year due to the chip situation. Nevertheless, we are still positive that we will make the budget, and that we are more or less on the same level as we were last year. I was now talking about Fendt. The same applies, of course, for the CLAAS product portfolio as well. Interesting as always. Our service, the billable hours and the services are in excellent shape as the previous years. Turning to page 17, Global Produce. You see stable revenue, more or less. The decrease on the EBIT side has to do with the problems I explained already in T&G Global in New Zealand, and the logistics are the bottlenecks in Australia and in the U.S., unfortunately. In TFC, our Tropical Fruit Company in Maasdijk in the Netherlands, we have as well higher sea freight prices. Well, it's hard to get the charter vessels at this point in time and all the containers you need to ship all the products from especially South America to the European retailer market. Finally, we think we will make the budget, which means on the same level as we performed last year. Coming to Building Materials, I think this is really easy to understand. The overall market development is very positive. The German construction industry index is on a very high level, and so far, the market circumstances are very useful for us. You see that if you turn to page 20, that the revenue is increased 13%, nearly EUR 1 billion, and the EBIT with EUR 33.6 million is an outstanding result for the first six months. If you are following us for a longer period of time, you know that sometimes we have even after the first six months, a negative result in building material because the best months normally come in summertime. Of course, now we have a very unstable weather situation, rainy situation here in the southern part of Germany. We'll see what's happening, but this is really outstanding, and I'm very happy also with the part of the project development within this EBIT contribution. It's still not as high as we said it will be, of course, because it takes time. We invested now a lot of money for all these building projects, but this will be one of the key pillars of this business segment in the future. The last page, 21. Innovation and digitalization. Well, it's always the same story. We are investing in the IT, in the FarmFacts and in the digitalization environment for us internally, but also for the customers and so far, EUR -4.8 million. This is not an operational negative performance. It is investment in the future of this company. This was my first shot now regarding the first half year, and I hand over to Andreas. Andreas, please explain to the analysts and all listeners here the group financials. Thank you. Yes, Klaus. Thank you. Good morning also from my side. Just a very few remarks to add on the financials. I think you have the snapshot on the balance sheet and the income statement. I jump over to slide 23. It shows the other activities. The other activities, as you know, comprise everything which is not in the three segments. All the company overhead costs. We came out at the half year with EUR -30 compared to EUR -35 last year, mainly driven by lower overall expenses, other expenses, travel expenses, something like that. As you know, COVID-driven minus. We received already the first bank dividends again in a volume of EUR 2.5 million from Austria and expect another part to come from the German banks, as well as a second part from the Austrian banks, maybe. We hope that what we'll see in the third or fourth quarter to come. The overall outcome, and this is what we are expecting here, you know that we had EUR -80 overall last year. I expect a down of around about EUR 20 million compared to the previous year on the other activities. Just to give you a flavor where we stand and where we will be at the year-end. The next three slides just show the summary of the segments, what Klaus reported in depth on these three segments. Just to add on the energy side, maybe because we reported that in the half year report, you may reconsider the event that the industry has seen in Texas, the extreme weather event on the renewable energy side. Remind you what r.e. Account for. Our two facilities that we have over there has been hit by this event, and this has already been included in these numbers in the first half year with a volume of over EUR 14 million. That's already in there, as well as the transaction costs for the capital increase that we closed in the first quarter. That's also an event of the first half year that is also here included in the performance of the energy segment. That shows you how strong the overall performance was in the first half year. On agriculture, fantastic figures. If you summarize it and compare it to the past, the highest we have seen over the last couple of years, with an EBIT of overall EUR 88 compared to what we have the years before, or an EBT of EUR 62.5. Really, a very strong performance, as Klaus pointed out, in the international business, but as well as in our national, our domestic business here in Germany and Austria. Finally, building materials on page 26. I think everything has been mentioned on this. The summary of the overall income statement for the first six months on page 27 shows that we end up with an EBT of EUR 94 million, that gives the consolidated net income of EUR 66.8 million, which is one of the driver also, if you look on the equity development within the first six months. I come to that in a minute. Interesting enough, also that the share of the mother company is at roughly 42%, which leads to an earning per share of EUR 1 compared to a EUR - 0.54 the previous period. Finally, a view on the balance sheet. As I mentioned, it is just a snapshot as you see from seasonality driven. You see that the overall assets is up to EUR 10 billion. That's mainly driven by two effects. One is the BayWa r.e. business, which is coming out strong throughout the year. That will be the driver also in the final quarters in 2021. As you are used to already. The second is the strong business which is reflected in the accounts receivable, the strong business in the agri sector, both the international and domestic business brings up the receivable position. That will be back on track by year-end. If you look on the equity, an increase of some EUR 600 million, which is higher than only the capital increase by the investor, which came in at EUR 530 million. The one thing was the positive net income of EUR 66 million, but also the second effect of some EUR 30 million, which comes out or came out of the increase of the interest rate for the pension liability that gave a positive effect on the equity of some roughly EUR 30 million at half year's basis. If you compare the total equity now to the level of the balance sheet that we expect at year-end compared to last year, the equity ratio is as we mentioned, above 20%. I think this is the only and the most interesting now after this first 6 months, excellent performance and I think a very solid basis for the second half of the year and Klaus will reflect on that, what we expect for the total outcome now. Thank you. The outlook 2021, Josko mentioned that already. We announced to you guys that we expect a much higher, better result in 2021 than in 2020. I don't know what should I explain. BayWa r.e., we will 1.1 GW sale, and I think that we have a still positive development in the trading business. Conventional energy is going down, but will be overcompensated by r.e. The two business models don't have any link. It's just energy. Agriculture, we expect much better performance than last year due to the arguments I shared with you. In building material, we have a great market environment here in Central Europe and so far that's very positive. We expect an excellent year, record year 2021. I think this is sufficient. We are happy to take your questions. Yes. Thank you, Professor Lutz. Thank you, Mr. Helber. We are ready now to take your questions. Thank you. Ladies and gentlemen, if you would like to ask a question, please do so by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star one to ask a question. We'll now take our first question from Knud Hinkel. Mr. Hinkel, your line is open. Please go ahead. Yeah. Thank you. Good morning from my side. Congratulations to the great H1 results. I've got four questions, if I may. First question is on Cefetra. You made clear that the trading gains are a part of the business model in that space. Could you give an indication how much the trading gains were better than average levels? I see that there's probably some like average contribution from trading gains. Is it much better in H1? Maybe an indication would be helpful here. Then three questions on BayWa r.e. First of all, you did not change the guidance concerning the gigawatts you planned. That's 1.1 GW. That's also what you said at the end of the year. My question would be, in H2, will we see some growth in revenues and in EBIT despite great results in H1. Could you also give some indication here? That'd be fine. Second question on a detail, you said that the capacity installations in onshore wind energy were down in the first half year. Maybe you can say something what's going on in the market here. You said something about China. Maybe you can give more details. It would be helpful. Last but not least, a very strategic question, a long-term question. You said that at some point in time, an IPO of BayWa r.e could be an option now that we see very good results, very good business at the moment, and also some competitors already are listed. Is that something where you could think about speeding up the process, or is it still a long-term topic for you? Thank you. Thank you. Thanks for your questions and for your remarks. I start with the last one, the IPO or a potential IPO for our BayWa r.e. is not yet planned. Why? Because we just finalized the process a few months ago with EIP in Zurich, and so far, this is not at this point in time a question, but I do not want to exclude it completely for the future. We have a budget basis with our partners in Switzerland for the next seven years till 2028. Of course, in cases which I can't describe now, it could be a possibility to go through this IPO process. At this point in time, the need is that the management is working on the project, that the management has to be a little bit more used to the new leadership and governance structure, and this will take time. At this point in time, no. The question, why do we have the overall little decrease in the wind onshore building activities or the volume to be constructed over the next years? It's not just this year, but over the next years. There's a little decrease, and this has to do with China and the U.S. because they built much earlier some facilities last year as it was planned. It's not a postponing impact, which we are announcing quite often. It's the other way around. They went through this process earlier, so we have a pull-forward effect here. If this is the background of your question, it does not mean necessarily that the overall market demand is decreasing. It's just the question, when are projects ended or they're going through the process for all these projects. The next question regarding our r.e., of course, we said 1.1 GW for this year. I must say that's just a forecast. Of course, it could be also a little bit less, seldom more, because it depends always on the fulfillment of all the requirements, also legal requirements and stuff like that we are able to create the connectivity to the energy nets in the different countries. The plan is 1.1 GW. There's not a change. You saw EUR 50 million now for the first half-year. We expect a higher contribution in comparison to last year from the trading business. This is in excellent shape. As Andreas said, we compensated in the first half-year this damage in Texas and some other one-timers. With other words, we expect, again, a record high in our r.e. as we headed over the last years. I hope you understand that we do not want to give a clear figure-based guidance on that. The key message is, again, a record high in RE. Your last question, Cefetra trading gain. If I understood you correctly, you mean what is the share between the specialty business and the commodity trading? It is more, I would say 50/50, maybe this year, 60% specialty, 40% commodity trading, especially soy business, corn, wheat. Soy is extremely important for us. We are the key supplier for the combined feed industry in Europe. That's it. We don't speak about margins and yields and so forth on the basis of product lines, but the split is 50/50, 60/40, something like that. We said always, what is our goal with the investment in the specialty business to have, over the years, a sustainable EUR 40 million contribution on EBIT level from a Cefetra, and the split is 50/50, 60/40, 70/30, whatever, because it's a very volatile business. Not only in the commodity business and trading, of course, and supply chain management, it's very important, the supply chain, also from the business model. Also, in the specialty business, not so volatile because we do not depend on the stock market development, but if you have a problem with the harvest, weather conditions, whatever, at any place on this planet, then we could be affected. Bottom line, this year, the first half year is an excellent performance. Is this answering your questions? Absolutely. Thanks. Mr. Hinkel, if I may, just we're talking about trading gains. Absolutely right what Klaus mentioned on Cefetra, I think trading gains was more coming through in the domestic agribusiness in the first half year this year, what we realized there was a fantastic book that we kept from last year's harvest, we mentioned that in the last conference, that we have a good book kept forward and that was realized here in the first six months. It's more, we're talking about trading gains, the effect on the domestic business this year. Understood. Thank you. We'll now take our next question from Guido Hoymann. Your line is open. Please go ahead. Good morning, gentlemen. I think three questions from my side. The first one would be, on the pipeline, you mentioned that it grew to around 15 GW. Could you maybe potentially share some more details on where it grew, as in which region? Maybe also, if it's rather solar or rather wind. The second question would be on your full year guidance, if I take the upper end of your EBIT guidance as + 20%, I derive for the second half an EBIT of around EUR 150 million, of EUR 115. Last year, I think it has been EUR 161 million. It implies that even the upper end of the EBIT range implies a quite significant, i.e., about EUR 50 million EBIT decline in H2. Could you indicate where you expect this decline to happen? Yeah, two more questions. Unfortunately, I didn't get the figure of your Texas damage, not precisely. Was it EUR 40 million, or was it EUR 14 million? Last but not least, I think you also mentioned windfall profits, which is absolutely okay and great, as you mentioned, certainly management skills. Don't you think it makes sense maybe to quantify them, just to avoid that people extrapolate, yeah, this year's figures, and then we run into the disappointment in the coming year? I'm particularly thinking about the building materials segment. I think you built up, I assume you built up stocks at relatively low prices. We had these, yeah, price increases, which probably was also part of the success in this business in H1. Would you like to specify or give more details on the scale of windfall profits you might have achieved here? Okay. That's my questions. Thank you. Okay. Thank you. The windfall profit in fertilizer is EUR 3 million. The open book, as you said, was EUR 12 million, so this explains the situation here in Germany. It's only the German operation BayWa r.e. The next question was your question regarding the damage in Texas. It's not EUR 40 million, it's EUR 14 million. It's covered in the EBIT and insofar in the P&L statement already. Your question regarding the pipeline, 15 GW. Most of the increase comes from Europe, also Germany. We made a little acquisition here, to get the options to build wind and solar facilities. The key volume comes from solar, because we think that the solar business especially has an interesting growth opportunity, and this is also reflected in the overall market picture I showed you in this slide on the left side. Now, Andreas, to the EBIT situation. What is our comment on that? Yeah. It's always an easy way to calculate what was last year, what is this year, the second half of the year, and you're completely right. That's mostly driven by the realization of projects in the RE business. It's not a decline that we expect. Our guidance that we gave in the ad hoc earlier this month was that we expect an increase on profit, on EBIT-wise profit, compared to last year, between 10% and 20%. That was the estimation that we gave. Decline, I would not say it's a decline. We expect a good contribution also in the renewable energy, as we have seen it all the years before. How should I say? Reluctant compared to what might be expected is the building material sector for the second half of the year, because we are a little bit cautious what we expect here. You have seen the number that we already achieved for the half year, EUR 33 million or EUR 34 million, and you see you can't double this because then you would be at EUR 66 million. Overall, you have there a slowdown effect in the second half of the year to expect. All the other business, I would not say that it's a decline in there. It's for the best guess that we could give from today's perspective. If you make a simple calculation, 144 times two means 288. This is an easy calculation, but it's not reflecting any market circumstances, changes, damages, weather conditions, maybe early winter breakthrough or something like that. Such a calculation is not really reflecting also the risk profile of this company and the different business models. I would be cautious and careful how I'm going to calculate, in principle, the going forward business in the second half. If you make some reductions, risk, then also the seasonality of some business models which we have. The question with this chip crisis, if I hear and if I listen to the experts and the company where I'm chairman of the supervisory board, one of the key cybersecurity companies in the world, and I'm listening to them and ask them what is to be expected on the chip side, the chip crisis, and they say, "Well, we expect the end of this middle of 2022," but also with a big question mark. We have such an uncertainty in many business circumstances that it is not really easy for us to give a clear forecast figure-based. Of course, we have one internally, but we do not share that with you just for security reasons due to the volatility in the different markets. The machinery business, it's just one example. We are still positive that we get it done in this year, but you do not really know because we depend also in many sectors on the manufacturing side and the manufacturers, whether they can do the job or we have to wait for a few months to get the product shipped to the customers. Is this answering your question, Hoymann? Yeah. Perfect. Very clear. Yes. Thank you. Thank you. Thank you very much. Thanks. Thank you. Thank you. Once again, ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. We will now take our next question from Sven Sauer. Your line is open. Please go ahead. Good morning, gentlemen. Also from my side, congratulations on the results. Two questions. I'm sorry if I missed it, the first one is regarding the agriculture equipment. In the first half, the new tractor registrations in Germany were up by 15%, the sales in your new machinery were down by 14%. Maybe you could explain the reason for this. The second question is regarding the issue with the container bottlenecks. How do you see this situation going forward? Do you see it maybe easing a bit, or should we expect more cost burdens regarding the container shipments? Thank you as well for your questions. First of all, agri equipment. We have some postponing effects here, and the order intake is extremely high, better than last year. As I said, just 1,200 tractors on the facility side of AGCO/Fendt here in Germany, Marktoberdorf, and the final assembly is not yet finished due to the chip crisis. That's one thing. We could have done much more. The demand is there, so no reason to be concerned. The only thing is, do we get it in the books in 2021 or is it then in 2022? Regarding the containers, that's, for instance, one risk assessment we made with regard to the simple calculation. We take the first half-year result times two means so much. This is part of our risk assessment that the container threat situation we believe will not be over the next weeks/months. Has to do with China's demand, has to do with the U.S. demand and also some other Asian countries, and also the stream of goods from Latin America more to China than to Europe. The availability of the containers is not to be improved, or we do not see really an improvement. Yeah, Radeljic, you have the biggest? No. It's okay. Good. Yeah, that's the analysis we made internally. I can't give you a clear figure on that because it's also driven a little bit by incident and you have every week another event where you have to restart your calculation. It's not dramatic, maybe that's the right word. Just to calm down a little bit, this tension on this container and vessel charter vessel situation. Is this fine for you? You need more? No, perfect. Thank you. Thank you very much. Yeah, welcome. Thank you. We'll now move on to our next question from Ann Margaret Crow from Edison. Your line is open. Please go ahead. Good morning, gentlemen, and congratulations. Yeah, thank you. Good morning. The record first half. Good morning. I have two questions. The first is on the digitalization segment, and noting that losses are reducing, I'm wondering, does that imply you are investing less in the segment? Just providing a bit more color there. The second question, is looking at the renewable energy segment, and you noted that one of the great things about the two acquisitions that you'd done was this brought you more people, more qualified people. My question is the availability of qualified people one of the criteria that's limiting growth in that segment? With the number of employees that you now have, what level of annual revenues can you support? Thank you very much. Yeah, thank you very much. I'll start with the last one. The first one, maybe, you should repeat because you were disconnected technically. Oh, okay. No, it's no problem. Step by step. Let me answer the last question. You are absolutely right. That's a war for talent, so to say. We need engineers, project managers, and people working in the back office. All these little acquisitions we have made, for instance, in Germany, the NWind acquisition with 700 MW, and the French Enerpole SAS with around about 600 MW, are fulfilling our pipeline. That's one thing. The other thing is we need people. If you look to the growth of FTEs, more importantly, the growth of people working for us, I think we are above 3,000 employees meanwhile, on a global basis, of course. You are right that the qualified people, and the lack of these guys and qualified people and employees is the bottleneck to increase the volume of projects. That's one thing. The other thing is, of course, also the time to get the permissions from governments, local authorities, and so forth, which is in some countries not easier or didn't become easier as it was in the past. There are two and three parameters which are important for the consideration what is possible. We have a budget with EIP, our co-investor from Switzerland, till 2028. On this level, we expect a continuous average growth rate over the next years. Do we have a figure? We do not want to speak about the bottom line, but it's a growth rate year by year, regarding the volume and also the profitability. We don't provide the capital market the details regarding margins and their profitability at this point in time. Otherwise, it would be a contradiction to my statement that we just described the development and the market opportunities. Andreas, you wanted to mention something? Maybe just one remark, because you asked on the turnover. The overall turnover, the revenue last year in the renewable energy was EUR 2.6 billion. Also for 2021, it's driven by the very strong trading business on the solar modules and the converters. I think the interesting thing is to get people for the project development, and I think we are well on track because we are a very attractive company for the market. We increased the number of employees, as Klaus mentioned, year-on-year, by roughly 400 people. It's more than roughly 20%. I think this is good for us, and we are able to achieve our plans with the staff that we have. We must be also careful how many people, how many companies, how many new infrastructure we take on board, because it's not easy to consolidate that. Also here it's, of course, a bottleneck because you can't do all at the same time. Do you mind to repeat, please, your first question because there was a disconnection? Is this possible, please? Yes, of course. The losses in the digitalization segment reduced. My question is, does this reflect lower investment? Or is there something else happening there? That's just lower investment. Yeah, Andreas? The main reason for that is that we disclosed in the previous year the e-commerce activities within the other activities, and we changed it at year-end last year. Putting part of this e-commerce activity losses or the cost that we have directly into the operational segments. It's not a decline in investment in these new farming things or systems, but the only thing comes out of the e-commerce disclosure. Nevertheless- Right. we took the break a little bit on the development for the future applications, cloud-based applications for the farmers, because we go through a strategy process at this point in time. We changed the management, there's new CEO. This has an impact as well. It's maybe only postponing. We think about the strategy because there is no revolution in the agribusiness. To say, the people are very reluctant to invest in IT infrastructure, in applications, and in software to improve the processes. This has to do with the small structure of the farms in especially South Germany and in Austria. So far, the farmers are a little bit reluctant. Now we are in the middle of change, generation change, so the younger farmers are much more in favor of IT and software and online and blah, blah, and all these things. So far, it's a change process. I said that over so many years now, we do not expect a revolution. I was sometimes criticized for that. Now we have the facts on the table. It's not only with us, it's also with other companies, which were investing money in IT and in applications for the farmers, for the customers. It's not such a fast-growing market as it was expected by our competitors. Some manufacturers, we never thought this will take just a few years and then we are something like, I don't know, Google, Amazon, Microsoft, something like. It's a niche market. If you look to the overall market environment and volumes, you can sell volumes, I mean licenses and maintenance contracts just in Europe. I would say one of the big shots would not invest here because it's too small. Nevertheless, for us, it is extremely important as a supplier to a customer solution provider to the farmers as customers. We need to have this product portfolio available for them in case that they're going to invest much more money. In Germany, by the way, farmers are not really happy to pay for software and maintenance and especially for consultancy because we have the local authorities, the so-called farm authorities, and employees are specialists who are advising the farmers without any costs. So far, it's not easy for a business company to make money in this sector. Nevertheless, it's crucial for the future perspective and to protect our business. Right. Are you forming relationships with the local farming advisors to help promote the software? Yeah, we have an excellent relationship, but in this situation, we are competitors. Oh, okay. I try always to convince ministers, politicians in the agribusiness to stop all this because the state should not be authorized to be involved in business activities. I say always, this is unconstitutional on the basis of the German constitution. I have to admit, I was, over the last 13 years, not really successful because people are working in this sector, in the local authorities, and they want to have a personal future in this business as well. That's a little bit the problem. Right. Okay. Goodness, that's quite complicated. Thank you. Yep. Thank you. We'll now take our next question from Norbert Kalliwoda from Research GmbH. Your line is open. Please go ahead. Morning. Congratulations to your very good results. My questions are, you implemented SAP HANA. Is this already finished? In regards of optimizing your inventories, do you have there a good progress, maybe some details? Maybe a general question about the Chinese five-year plan you mentioned, Professor Lutz. I would be interested, are the business usances, also the dealing with this country the same? Is it becoming more complicated, or do you see much more chances in the future, or is the competitive environment there increasing? Maybe you give us some ideas. We as analysts, I think the most we work with the Discounted Cash Flow model. Am I right that we make estimates on the energy segment for the coming five, six, seven years with the sales growth of between 10%-15% or so? This is what I calculated. I would be very happy. Thank you so much. Okay, Andreas, you're still reflecting your last question. I start with SAP HANA. Of course, you can't implement this major project, not from one analyst conference to another one. It would be good, of course, but it's not realistic. We started a project that's called Core for BayWa AG. The rollout process will be all over the world in most of our subsidiaries. At this point in time, we are still in defining the requirements from our business units in combination with the calculation financially, plus the advice of our chief information officer internally. We are still in the design phase, so to say. Of course, this is a very complex project. It will take a few years till we are through this project and this process. Finally, investment is EUR 100 million-EUR 150 million, as it was with SAP R/3 already. I don't expect too much at the same time. I think it's also good for the company because if you change too much parameters at the same time, you are jeopardizing your business. As far as I can see it, from the timeline and from the budget, we are on track. Regarding China, of course, this is a very complicated and very interesting question, because China is becoming more and more important for us from a business point of view. You know that New Zealand is more or less depending completely on the Chinese performance or the performance with the Chinese customers. T&G Global is one of our key business pillars on a global basis in the global produce business. China is extremely important. What do we see? First of all, we have an increase of volumes to China with our apple business, berries, and all these things. I'm happy with the development here. The problem is the other way around. The procurement for solar modules, solar panels, and also other devices we need in the renewable energy sector due to the discussion which we have here in Europe and the law, which is called the Lieferkettensorgfaltspflichtengesetz. The act we have in the Federal Republic of Germany regarding human rights, sustainability, forced labor and stuff like that. With other words, this is more and more a complicated situation for us, and it is an unclear legal situation. What can we do? What are we not allowed to do? It is a disgrace for the politicians, to be honest here in Europe. We think we can now as companies, or they think, these politicians think and believe that the companies can get the human rights situation under control, which is completely ridiculous and nonsense. If you read what we are publishing also in my second live job, so to say, as president of the Chamber of Commerce and also as CEO of BayWa, I'm really criticizing all these regulations because it's jeopardizing our business. It's jeopardizing also the business relationship also on a human basis with our Chinese colleagues. I do not say, of course, that they have anything against human rights. This is nonsense. That's the task for the politicians to make sure that people are not working in a forced labor environment for us. So far, situation is a little bit critical because China agreed upon a new act, which is called Anti-Sanction Law, which is the answer on our Lieferkettengesetz and also the different export bans and import bans from the American government. That's a very complex and complicated picture. As far as we are involved as BayWa Group in this business, we do not have a negative impact at this point in time on our business. I do not expect it at this point in time for the import of the solar devices from China and the export from the Southern Hemisphere with our global produce products to China is not jeopardized as well. In principle, there are some threats around, of course. Okay. Andreas, Yeah. Mr. Kalliwoda, hello. Hello. I was really hard considering about your question. What should I answer without saying nothing on this? Firstly, I would say for your Discounted Cash Flow, I know that you've calculated Discounted Cash Flow coming from the revenue, and if you just easily put a growth rate on the revenue, that would probably guide you in the wrong direction. Firstly, what I want to say is, what we announced to the market is we have a new strategy set up into 2025 to increase overall Group EBIT. Sorry. Now I'm in revenue on my own. A Group EBIT between EUR 400 million and EUR 450 million. There's a portion in there for the renewable. The second remark that we made to the market already is that within the next two years, 2022, 2023, we want to double income from the renewable energy sector. You remember that when we announced the transaction with EIP, we said, okay, for the earnings per share. Now for the next two years, we have a slight dip, but that will be compensated after two years by the doubling of the income on the EBIT. If you put that in your cash flow model for 2023 and then increase the EBIT number on an amount between, let's say, 15%-20% per year, I think that would better guide you on the results for renewable energy that we expect. Revenue, as I said before, is driven by the trading on the models, which could be absolutely volatile, which could be price affected, which could come up and down as you see it in the other commodity activities that we have. The second reason is that we changed the model just from selling projects and turning projects into the IPP structure that will deliver a more stable cash flow coming from the power production in the future. I would not be happy if you just do it on the revenue number. Try to do it on the EBIT number, and I think we will both be more happy. Okay. Yeah, this helps. Thank you so much. Good. Thank you. We'll now take our last question from Oliver Schwarz. Your line is open. Please go ahead. Thank you for taking my questions. Hello, gentlemen. Good morning. I was sad to learn that you are so downbeat on the upcoming development in H2. Mr. Lutz stated it would not be appropriate to take the EUR 144 million, double that, and come up with the number for the full year. I would fully agree on that. If we had done that in the past, we would have expected an EBIT for the full year of BayWa in between EUR 16 million and EUR 110 million for the full year. Thankfully, numbers were much higher at year's end due to the fact that the second half of the year tended to be much stronger than the first half of the year in every business year in the history of BayWa. Hence, again, picking up on a question that was already raised before, what's the underlying assumptions that your outlook is based on when we are talking about a significant decline year-over-year that is expected versus 2021? Specifically, I like to discuss with you the stock levels of fertilizers. Are they depleted now? Are you willing to rebuy the same volumes you did last year, or is the high level of prices currently something that would have you shy back from building inventories? Secondly, obviously, the trading business benefited from the volatility in staple foods. Is your view that this volatility might turn against BayWa or that the volatility may die down, so the profit margins also are being reduced in the second half of the year? Again, on the development in the second half of this year, in regard to working capital, when we are looking at the increased levels of inventories, but also on payables, what's the level of working capital that is to be more or less expected by the end of the year? Hand in hand with this, I think, goes the question in regards to the net debt that is to be expected at the end of the year. I fully appreciate that we are living in an, let's say, uncertain environment, and that's especially true for the business model of BayWa. However, I have yet to see a year where the visibility and certainty in regards to oncoming development in regards to BayWa's business is more or less certain. What is your key assumptions that you're facing your outlook of a significant downturn in H2 2021 on? Thank you. This is a very tricky statement, Mr. Schwarz, but I expected that, of course, from you. Otherwise, I would be very disappointed. It's interesting that you see a downturn in the second half, because. Just to summarize for all the colleagues on the phone and here in our conference room, it's quite simple. You take the EUR 144 million, you say the second half is normally much better than the first half, so you don't come to EUR 288 million, you come to EUR 300 million, I don't know what. So far, if this came true, you would get the Goldene Raiffeisennadel from the Deutscher Raiffeisenverband from my side as vice president. That's the one thing. The other thing is, coming more serious now to your points. The fertilizer and the storage to be expected in autumn, where we are buying for the next season, the volume will be decreased because the price level is extremely high. You know that in 2008, 13 years ago, as I joined this company, we had our Waterloo, especially with the fertilizer volume. It was too high. The speculation from the previous management was to get windfall profits because they expected an increase of the prices, which was not the case, and we lost within a few weeks, I don't know, EUR 30 million profit just due to the fertilizer volume. This is not the case. We are very careful since this event. We are now reducing the volume in comparison to last year because the prices, as I described in my statement before, the prices are extremely high. Regarding the trading business. Trading, I guess you mean Cefetra, you mean our supply chain management, the origination, and the supply chain management with the grain here in Germany. These are two different cups of tea because, as you know, we have a different view on the open book here in Germany as we have it in Cefetra. For Cefetra, I do not think that the margin will decrease. I think we have a stable situation also in the specialty business, which is around about roughly 50% of the profitability. Volatility will not hurt us at this point in time. We see it also in the order intake in Rotterdam. In Germany, it's a little bit different because it depends when we ship, when do we ship the grain to the customers, to the mills, oil mills, and so forth. This has to do we get it done before ultimo 31st of December, or is it just next year? We can put the profit from these transactions in the P&L statement maybe in the first quarter, first half year in 2022. That's a little bit a difference. This we do not know at this point in time. The second point is, as I said, the machinery business could be a downturn if we do not get the final assembly done, especially in Marktoberdorf, due to the chip crisis and also some other half devices which we need for the final assembly are not available in the volume we need at this point in time. This could have an impact, and we have to take this into consideration making our forecast, even if we just described the forecast. The third point is, as always, of the last years, we had always a little bit luck also with renewable energy, that just in time the project has been finalized. We got the permissions. We got the connections to the energy nets. This could also be once upon a little bit different, that we have a postponing effect, and so an impact on our P&L statement. We have as so being very careful as business managers, we have to take this into consideration as well, that maybe there is a postponing effect. We don't have a concrete event right now. We don't have a concrete negative forecast, so to say, from our management in renewable energy. Nevertheless, it could happen. This is also a part where we deduct, virtually deduct something from your calculation. Well, I think these were the key elements. Then take into consideration that we have an early winter outbreak here in our building material customer areas, then we have an impact on building material as well. Of course, the EUR 33 million EBIT which we have right now is excellent. This was our forecast years ago for the full year. Now you could say, okay, EUR 33 million, then we make EUR 60 million. Maybe we make EUR 60 million, but we don't know. Being careful, we have to deduct here also a significant amount of money or let me say EBIT from this figure. That's the logical system behind our forecast and forecast process. The forecast is a rolling process, as in I think nearly every stock-listed company, and it's an up and down, and up and down. At this point in time, I have to admit it's very stable. We see a very good 2021, but we make deductions just to be on the safe side of life. I fully appreciate what you just said, Mr. Lutz, to me it seems all the risks that you alluded to should be reflected when you give, let's say, a guidance range. All the risks should be reflected more or less in the lower end of the bracket, which would be an increase of 10%. With all the risks, or at least part of the risks not becoming reality, things just working out, that would be the upper range of the guidance, and that would be +20%. The +20% still reflects a significant decline year-over-year in the second half of this year. There must be something that you baked into your guidance that gives you, let's say, a lower point for the start of the calculations before you factor in all the risks and you factor in all the boons that also could materialize in the second half of 2021. Mr. Schwarz, just to make 1 point very clear, we are neither a positive nor a negative sandbagger. Okay? It is really realistic estimation from our side. We think if you are right and we make much more, what are we going to do then? Then he gets a Dom Pérignon. We go out talk. We go out talk. Plus the Needle. I want the Needle as well. You get a Dom Pérignon. My personal assistant, you take a note now, Mr. Schwarz will get a Dom Pérignon vintage Champagne if he is right. I want the Golden Needle. I want the Golden Needle, yeah. Okay. It's just a joke. I'm kidding. Nevertheless, you get this bottle. Summarizing all these different risks we see, our assessment is as it is. We do not underline that with figures because this is not our communication style to the capital market. Andreas. Yeah, Mr. Schwarz, I know the exercise that you do, and I just did it for my little paper here. I don't like too much talk about risk and decline of the second half of the year's performance. I think we are strong in our core areas. If I just calculate how you do it, coming from this EUR 54 million contribution last year after six months up to the EUR 215 million, that was contribution of EUR 160 million. If I look at this year's and what we announced to the market, an increase compared to last year, between 10% and 20%. If you do the best guess, do the middle, it's not a guidance. Do the 15%, that brings you up to EUR 247 million compared to the EUR 144 million that we already have. The delta is EUR 100 million. The difference between last year's second half performance and this year's second half performance would be EUR 61 million. If you look on the result that we had in the renewable energies last year, it was EUR -1 compared to the EUR 50 million that we already achieved now in the first six months. This covers most of the delta. I would say, yeah, we have some risks and we have some things to do, but you can't just put the performance giving this renewable energy business that we have and what we already achieved now after the first six months in 2021, just to paste and copy into the second half of the year. I think it will be a strong one in the second half of the year as well. It's continuing on this core elements, but it's not that easy. As Klaus said, we have risks, but we are not sandbagging anything. Please don't estimate now a decline compared to last year's performance. This is the, here, Oliver Schwarz. This is the logical consequence of becoming more and more a project company, because you don't have this stable up and stable down and stable forward, whatever. It depends on the accomplishments in the project businesses, and we have more as we had in the past. If you have a pull-forward effect, for instance, in the first half year with two or three projects, you don't have that then on top in the second half. It depends on so many different parameters. I think this is one of the key aspects we have to obey for the forecasting process internally, but also for you. We can't say due to the fact that we sold two projects or three projects now in Japan and in Sweden, in Germany, in France, for instance, that we expect now the same on top in the second half. Yeah? We have a clear pipeline, and this is the basis for the calculation. Maybe one final comment on this, where you definitely should expect a decline. This is in the classical energy business. Remember that we boosted results in the second half of the year last year, and the total outcome in 2020 was nearly EUR 32 million. Remember that. That was an outstanding result. We normally calculate something between EUR 10 million and EUR 15 million, and EUR 15 million would be a good guess for this year's performance. It would be a normal year. Definitely there you will have a decline, but this is nothing that we sandbag. Very clear. Thank you. Thank you. It appears there are no further questions at this time, and I'd like to turn the conference back to you for any additional or closing remarks. Thank you. Thank you very much for your attention, and we wish you a nice summer break, hopefully more sunny than it is currently now. The next conference call takes place on the 11th of November. Talk to you soon. Thank you very much. Bye-bye. Thank you, gentlemen. This concludes today's call. Thank you for your participation. Stay safe. You may now disconnect.