Good day, ladies and gentlemen, welcome to the BayWa analyst conference call Q1 2021. Today's conference is being recorded. At this time, I would like to hand it over to Mr. Josko Radeljic. Please go ahead. Good morning, everybody. Welcome to BayWa's conference call on the results of the first quarter 2021. As usual, Professor Lutz, our CEO, and Andreas Helber, our CFO, will guide you through the presentation that we sent out this morning. In case you miss any kind of documents, you know that you can download it from our website. Ladies and gentlemen, for those of you who cover us for a long time know that we do not put too much attention on the first quarter. Any kinds of forecasts based on the first quarter is difficult. This applies also for this quarter. However, it's a great start. All about the first quarter we'll tell you now. Professor Lutz. Good morning, ladies and gentlemen. Of course, it's not usual, as Josko said, that I am with a Q1 conference, because normally I'm not really interested in the figures of the first quarter as most of you know. If the figures are positive, then that's the honor of the KJL/CEO to make all these announcements and to explain the business development to you insofar that's unusual, Josko, okay? We start with the overall picture. Ladies and gentlemen, we are happy to present to you the first quarter 2021, and the headline is exceptional figures for the first quarter. That's the continuation of the last quarter in 2020 with a great performance. Even taking out the positive result of renewable energy, we would be on EBIT level still positive, which is really unusual. Normally, we have a loss situation in the first quarter of EUR 25 million-EUR 45 million, something like that, and this wouldn't be a figure and result which is critical or is seen critical within the BayWa Group and especially from the Executive Board. In this situation, I think we need to explain why it is so good. It's the other way around. Turning to page four, you see the revenue increased 10.4% up to EUR 4.2 billion. More importantly, the key message for the profit is from -EUR 28 million to EUR 45 million in the first quarter. Really unusual. What is the reason for that? We have in all three big operating segments increasing revenues and earnings. Very important that due to some postponing effect from Q4 2020, we have the first sales of some wind and solar power supplies in Q1 from BayWa r.e. AG. Also we have a higher increase for the investments in the agriculture sector and here, especially the machinery business. We have still a sustainable construction boom for building material, but also for our project development in the building sector. Very important, of course, is that we had the closing in the first quarter for BayWa r.e.'s equity increase. Our CFO, Andreas Helber, was very happy to announce the EUR 530 million on our bank account. So far we accomplished all goals and BayWa r.e. has been transformed meanwhile into a German AG. We are a stock corporation under German law. Turning page five, you see here the comparison over the last few years regarding the Q1 results. This is really exceptional. We come immediately to page seven, the energy market development. There is no change to the figures we explained to you after our annual report conference a few weeks ago. It's still all without any disruption. Also, we have in the renewable energy sector an expected growth of 171 solar GW and 75 onshore wind facilities. Taking in consideration that we have around about 16.5 or 4 whatever options, gigawatt options in our portfolio, we are absolutely in line with the market development and the growth rate is still intact. The conventional energy last year, we had really great performance due to the crash of the pricing for the barrels and a little bit postponed an increase over the last months in the heating oil pricing. It's still a very good performance. You will see that in a moment. Turning to page eight, you see renewable energy increase of revenue, EUR 662 million and EUR 33.7 million, either due to the sale of one solar park in Japan, Isohara, 35 MW and Plésidy in France, wind farm facility with 11 MW, but more importantly now for the Q1 result is our trading activity. We have an increase of 31.3% of the trading volume for PV modules and converters plus 23%. Turning page nine, the conventional energy sector is a little bit lower as last year, but this is not a surprise. Why? Because the tanks are full. Heating oil is down 46.4%, but that's not really a significant figure now for the outlook in 2021. Also, we have a decline in the fuels. The increase in wood pellets, which is very nice. The lubricants are back on track so far because we have an increase of 9.9%. We come to the agribusiness. Just a few sentences regarding the market development. First of all, we have a positive development also for the farmers, the traders and supply chain managers in the commodity business over the last months. Last year was an excellent year already and the same in the first quarter. Coming back to the strategy, but you see on the left side the price development. On the right side, which is pretty interesting, the global grain balance with our price as always. We have to acknowledge that China is buying all the storage, as far as possible, the storage for grain just to make sure that the food supply security in China is granted. This could have an impact on the pricing for 2021. Turning to page 12. There you see the super cycles, which we are talking about for many years in the market outlook for the commodity business. Maybe is a little bit different to be observed in the future because of some external implications for the market development in the commodity business. The key message is that sustainability, the stronger demand for biofuels and the protectionism, which is increasing all over the world more or less, has, of course, an impact on the super cycles. We expect from a market point of view, volatility on the one hand. On the other hand, the formula to say that the productivity increase in the agribusiness is around about 1%. The increase of demand is a little bit higher, so you have the gap. This gap is increasing and so far you have constantly increased commodity prices in the future. I'm not anymore aligned with the statement which I made 10 years ago. You have to change your opinion and your statement if you have more interesting facts and knowledge about it. Volatility is much more important in the future, we believe, as it was in the forecasts of the last years. Turning to page 13. The input resources were in a much better shape from a market point of view. The agri equipment, especially in Germany, is still intact. Very interesting that in Germany, the tractor registration for new tractors increased in the first quarter nearly 14%. The other produce business, New Zealand production is 5% below the previous year due to the hail damage and some labor shortage because the harvest workers from the Pacific Islands are not allowed to come to New Zealand. Nevertheless, we expect a good year. In Germany we had a good harvest. We had high volumes and nice price development due to the price increase for the farmers/the traders because the demand is extremely high. Also for international fruits, for tropical fruits. TFC, our company in the Netherlands, the demand is extremely high in the retailers. Our business is in excellent shape. Coming to page 14, you see the Cefetra Group, formerly known as BAST. The revenue and the EBIT increased in comparison to the previous year. The reason for that is not only the commodity trading, but especially our specialty strategy. Many of you know that a few years ago we changed our strategy. We reduced the commodity volumes due to the volatility and the risk combined with that. We invested in a lot of small and medium companies in U.K. and the Netherlands regarding specialty business, which are niche products like vitamins, minerals and so forth for the compound food feed production, like Premium Crops in the U.K. or Royal Ingredients in the Netherlands and Tracomex and other companies. You see here an increase up to EUR 11 million on the EBIT level, which is the evidence for our strategy. Turning page 15. This is very promising because last year alone in Germany, as you know, we made a loss of around about EUR 24 million and the overall picture was not very pleasant. Here we have a turnaround. Whether it's sustainable, I can't say at this point in time. +EUR 14.7 million in the agri segment. Agri means Germany, Austria and our Eastern European participations in companies. We have more or less a slight increase on the revenue side from EUR 3.1 million to EUR 14.7 million EBIT. The reason for that is that we have some interesting development on the fertilizer side. The volume increased, but the pricing created some positive benefits for the bottom line. The volume in the seed side is growing as well, and the foodstuff as well. In comparison to the last years, it's not only in 2020, the import business is much better. So far it's an interesting development. The agri-commodity trading and the supply chain management, it has nothing to do with Cefetra. That's a separate, not only legal entity, but a separate business model. Due to the positive figures in the open book we had in 2020, which was now a part of it realized in the first quarter in our P&L statement shows that first of all, the market development is better than we thought it will be. The second point is that the restructuring and reorganization activities and actions we have taken, especially in Eastern Germany and some Eastern European countries, show meanwhile positive result. Turning to page 16, you will see the agri equipment business, our machinery business, more or less flat revenue and an increase on the EBIT side, which is really unusual former times. First quarter was always very negative. The reason for that is a boost in the service business. It's again, the proof of concept for our services. We invested a lot of money in high-tech sites for the service and maintenance in Germany especially. We changed the skill profile of our people and so far I'm very pleased with this strong development on the service level. The consolidation shows that the figures in the stable technology and bigger machines and so forth, this trend is also on track. So far I'm very happy with the EUR 4.5 million and the outlook is also very good. We come to the global produce business more or less on the same level as last year, EUR 100,000 difference. Well, important is that we started our operational business again in the United Arab Emirates together with the Al Dahra Group, our joint venture partner. After the damage we had to suffer with the big flood. Our tropical food company in the Netherlands started a so-called Softripe chambers, which is very important for the tropical fruits to prepare their ready-to-eat process in a more softer way as it did in the past. This means that the products are more expensive and the customers are willing to pay for that. It's a great success within the European retailers. We will see what the impact will be in New Zealand due to the hail damage and the shortage of harvest workers. I believe that at the end of the day, the cost structure is much lower than last year. The volumes are lower, but bottom line, we will not have any damage here. We come to the building material sector. You see on page 19, it's the same as a few weeks ago. No change. We have a boom situation in Germany and in Austria, and so far I'm very happy with the development, the market development for wood, for insulating material and the reinforcing steel. The problem is only that on the wood side, the timber is from a resources point of view, at this point in time very short because the U.S. and China, they are buying more or less all over the world, wood and timber and this could have an impact on our business development, but we do not expect significant downturn here. Page 20, 11.8% + on the revenue side, a -5.7% is an excellent start in 2021 for building material. Normally we have here a loss of, let's say EUR 25 million-EUR 30 million alone in the building material sector. Positive is the contribution from our project business. You know that we started two years or three years ago with the project development for apartments here in the southern part of Germany. This is going to be one of the key business pillars for building material in the building sector in the future. So far I'm very happy with that. Turning to page 21, as always, our investment in innovation and digitalization at FarmFacts also included our application software IT company for the farmers, especially where we are market leader in Germany, also the internal investments for the digitalization and e-procurement process. This is, well, it's a loss situation. We have to do that. We are going to invest now EUR 100 million-EUR 150 million over the next years in the new software system, the backbone of BayWa for the business. The likelihood is very high that we move from R3 to SAP HANA. That's the overview of the business development and the different business pillars. Bottom line, excellent performance. I'm very happy with the figures for Q1. Now Andreas will show you a little bit more details regarding the figures and P&L and balance sheet and so forth. Thanks. Andreas. Yes. Good morning, ladies and gentlemen. Also from my side. I keep it rather short. I think it's only a few comments on the financials. The most exceptional things that Klaus pointed out already are the performance in the first quarter, a sensational start. Just follow me on page 23, a review on the other activities. This is our cost part within the disclosures that we make. You see an improvement from - 18 to - 14 regarding the first quarter. This comes now through the Corona effects. Last year in the first quarter, we had no Corona effects incorporated in this Q1 number. This year we have, of course, mainly lower OpEx, travel expenses, marketing expenses, whatever, name it. That brought it down to 14. This is in line with the whole year perception that we made of some EUR 55, EUR 56 compared to the full year number of EUR 17 that we had in the full year period. Last year, remember that we had the corona costs, the direct related corona costs, and the missing bank dividends. This has not been affected now in the first quarter. That will come only in the coming quarters. We expect dividends being paid from the banks in Austria as well as the DZ Bank here in Germany. That will be reflected in the upcoming quarters, partly already in the second quarter. On page 24 to 26, you see the summaries of the individual segments that Klaus reported about. I think it's very unusual that you already have the positive start. Klaus mentioned it. If we already also reduce or take out the renewable energy performance, all other segments contributed to a positive result. In my nearly 100 years of career with BayWa, I just saw it one time. I can remember only one time that we had a positive first quarter. That was in 2017, that was only driven by r.e. This is quite an unusual state. Keep it in mind, if we look next year on the first quarter numbers, it could be the other way around again. This year, it's a very exceptional start in all three segments. I just would put a flashlight on the group financials with the income statement. I think nothing worth to be mentioned. In fact, it's on page 27. The EBITDA is up. All the key performance indicators are up. We have already, within the first quarter, positive earnings per share due to the good contribution of the mother company's part. Well, keep in mind what we stated about the performance in the first quarter. Page 28, this is reflecting what we also mentioned, the increase of the equity, the increase of the capital share, as well as reduction of the debt position. The debt position year-on-year, if you compare to last year's March number, nearly EUR 600 million down compared to the year-end, another EUR 200 million down. In fact, we had the seasonal effect of the increasing performance of the increasing operation business in the first quarter, which is also reflected in the increase of total assets, mainly driven, I could say only driven by the increase in the receivables portion due to a higher quarter-end accounting sale has been brought in. That brought up the number of receivables, which will already be reduced in the next quarters. The equity ratio up to nearly 20%. Everything is in line. Cash is in. The r.e. Capital increase has been through. The first quarter performance, excellent. I think this is a solid basis for the upcoming quarters. That should be it. I return it to Klaus now for the operational outlook for the full year. Okay, thanks, Andreas. We don't give you a concrete guidance as always, and we will not change it as long as I'm in this position here. Nevertheless, I try to describe what we expect. Last year, we had, what was the positive result? 215. 215. Okay, good. We expect in the energy sector, again, an extreme positive development due to the pipeline we are selling in 2021 and also start, as you know, the IPP business. The plan is 1.1 GW in 2021. Last year, we sold 600-something. We didn't achieve the volume goal, but we overachieved, exceeded the bottom line result in 2020. We did that over the last years. Maybe this year it's a similar situation. Conventional energy, I expect a little decline downturn due to the heating oil sale volume and the fuels. We have some positive impacts from our new BayWa Mobility Solutions business, but it's still a little, a small plan. The agri business, the Cefetra Group is in excellent shape. We expect a significant contribution from our specialty business, as I said. Global produce, I think we will have a similar outcome as we had in 2020. It was EUR 40 million, as you know. We have maybe a positive stimulus from the integration and the PMI of Freshmax and our partnership with [Karlsunds] in the berry business, which is going to be very important. It's one of our new strategic pillars. We see our greenhouse performance in Al Ain, which is fully operational now. And we anticipate around about four harvests in 2021, with the tomato for the local markets, local for local, that's the headline. The normal, what is normal? The agriculture business in Germany, Austria, and so forth. We are still in the restructuring process. The cost-cutting is not yet over. It will take another two years, as you know, as I announced during the last conference. Whether we can keep this level, which we showed now in the first quarter, I'm not quite sure. It can come to a downturn again. It has a little bit to do with the volatility also in the input business. The fertilizer start was excellent. We are looking forward to see a similar development in the crop protection, but we don't know whether it is as we assume. That is a little question mark. Agri equipment, our order intake is higher than last year, so I think we will make it. The so-called farmer's billion, Bauernmilliarde, the investment program of the government is a positive effect for our business as well. Building material, we have still the boom. Again, an excellent bottom line. I think if we exceed a little bit the performance of 2020, we can be happy. That's it. Thank you very much, and we are happy to take your questions if you have some. Yes. Thank you, Professor Lutz. Thank you, Andreas Helber. I recognize that some of you already wrote a report, but nevertheless, if you still have some questions, feel free to ask now. Thank you. If you would like to ask a question at this time, please press star one on your telephone keypad. That's star one to ask a question, and we will pause for a moment. We'll take our first question from Oliver Schwarz in Warburg Research. Please go ahead. Good morning, gentlemen. Oliver Schwarz speaking. As usual, couple of questions from my side. Firstly, congratulations on the really outstanding result in Q1. Some questions remain regarding, firstly, the inputs, so basically fertilizer, pesticides, and so on. I guess part of the increase in profitability there was not only increase in demands, but also the underlying price increases. You basically had some inventories and sold them off to the farmers. The costs of building up those inventories were much lower than the costs that the farmers incurred due to the price increases in the meanwhile. Is that something that you expect to continue? Basically, are you banking on an ongoing increase in input costs? Will that, from your perspective at least, development come to a standstill later in the year so that this, let's call it windfall profits from the lower price of acquisition to the selling cost might shrink? That would be my first question. Adjacent to that, do you still have significant inventories in those inputs at the moment? Second question would be rather to Cefetra. We have seen a huge increase in shipping rates. Does that affect your business, and are you able to pass on those increase in costs to your customers? My last question for the time being with the solar trading. Mr. Lutz, you alluded to a significant increase in volumes in Q1 in regards to solar panels, solar cells, and converters. I guess part of that is pre-buying due to upcoming price increases. If I read tables correctly in regards to solar module prices are on the verge of going up quite substantially. I think at least part of your customer base is in the know of this development. Will we see this development continuing in the next quarters from your perspective, or are those pre-buying effects basically limited to the first quarter? That would be my questions. Thank you. Mr. Schwarz, this is Lutz. Good morning. Last question to answer. Solar modules, the volume is extremely high, but we have this trend over the last, let me say, two years. So far, also due to our market position in Europe, we are number one in the module trading business. Let me say that's for us a normal development. We do not see that it has a direct link to the price development because sustainability, climate protection, and all these things, for the residentials especially, and this type of business model is residential-oriented. We expect that this trend is to be continued in 2021. Coming to the fertilizer business, you are right, that's a windfall profit because our stock inventory has been purchased in autumn 2020. Insofar, over the last months, in Q1 2021, we sold our stock inventory. Due to the increased pricing for the fertilizers, we had some windfall profits, but it is not really significant. It is not that the EUR 40 million, which we show now, the profit is just alone based on the windfall profit for the fertilizers. You could also say from a management point of view, it's an excellent managerial performance because we knew in 2020 that this is a low price and we sell it for a higher price in 2021. I don't know, that's not really true. It is a little speculative, of course. Your question was, number three, I guess, the crop protection inventory is high. Andreas, what do we expect here? I don't know. I don't have the figures in mind. No, from the windfall profit that we saw, small windfall profit, that was coming from the fertilizer. If you go back, Mr. Schwarz, on slide 13, there you see the price curve that Klaus discussed. It's different from what we saw last year. Last year in October 2019, was high level with low prices in the season. It was low prices in the season, now we have higher prices in the technical season. That gave the windfall profits. For crop protection, that is just starting now. The weather conditions are pretty good. It's raining right now. This is very important for the crop protection season. Finally, an effect should be expected or could be expected from what we discussed at year-end on the commodities or the product that we have stored from the last year's harvest, which are in the marketing process now. There we expect a positive impact in the second quarter. Yeah, in a higher volume as last year. Higher volume, yeah. It's not only price driven and the same with the fertilizer. It's not only price driven, it's also volume driven. If I have it correctly by heart, I think we sold 30,000 tons on top in comparison to 2020. Yeah. There was another question here. The shipping rates. The shipping rates, we have contracts, and the contracts, we have stable prices, and so far we will not be negatively impacted. Thank you. Very clear. Thank you. Our next question is from Anne Margaret Crow from Edison. Good morning, gentlemen. Congratulations on a really great start to the year. I hope it continues. Thank you. I have two questions. Thank you. I have two questions regarding the renewable energy segment. The first is this: It's very early days yet for the relationship with Energy Infrastructure Partners, but can you give any insight into how that is progressing and whether that is helping you to accelerate the project pipeline? The second one is: Are you seeing any demand for installations with energy storage as well? Okay. Second question, Andreas, think about it. I'll start with the first one. How is the impact of EIP from Switzerland? As you might know, in the beginning, it was a Credit Suisse subsidiary with 70% participation of CS and 30% the management. Now it's exactly the other way around. The management took 70%, 30% are with the Credit Suisse in Zurich. The key aspect of this transaction was the capital increase we accomplished a few weeks ago, finally, in the closing process. The EUR 530 million plus some commitments of the two shareholders that we are going to increase the equity in the future as well if it's necessary to finance new projects and also to have, let me say, the right equity basis for such big projects. What we are doing together with our partner is to increase and expand our IPP business. We take more and more wind and solar power facilities on the balance sheet to have a sustainable cash flow and also a sustainable profit development, which is easier to forecast than to start again and again, new projects. That's the big difference to the past. Well, how is the cooperation? Well, we have now BayWa r.e. AG with an executive board, so that's a corporation under the German law. We have a supervisory board with six members, two independent directors from the business, but not directly linked to BayWa or EIP. Andreas is our CFO, member of the board, and myself, I'm the Chairman, and Mr. Dörig from EIP is the Vice Chairman. The cooperation and the supervisory board, together with the executive board, while we are still in, let me say, in the beginning of this relationship. Due to the fact that this transaction took so long, we know, I think one another pretty good meanwhile, the cooperation with Mr. Dörig and his team in Zurich is really excellent. Also personally very, very good, I can't complain about anything. The psychological and the human basis for this cooperation is very positive. The financial basis is excellent. IPP, that's new for us, more or less. We created a new department within BayWa r.e. AG to take care of the IPP. The head of this new business pillar used to work already for many years in BayWa r.e., so far there are old faces with new jobs, so to say. I'm very positive with the development. I think that it's fair to say. That's the one question, the other one, Andreas? Ms. Crow. On the storage business, to be honest, I can't give you a very substantial answer on that. What we discussed with the colleagues from BayWa r.e. for the Q1 and last year's performance was mainly on the trading business. It was on the development business. That runs very good. On storage, it's not the main focus with our r.e. colleagues. If you need more insight, we could come back on this to you. It's not the main focus on the activity that the colleagues run in r.e. Generally, I mean, the inverters are increasing the demand for inverters and solar modules, so I do expect also an increase of the demand for storage systems. Usually it goes in line and there's a correlation. I will go back to our colleagues and give you a concrete answer on this. That would be very kind. Thank you. Okay. Anything else? Josko, do we have another question or so? From Hoymann from Metzler. We'll take another question, from Guido Hoymann in Metzler. Yeah. Good morning. Thank you for taking my question. It's one, very lean only. It's about the pension provisions, rather a housekeeping question. With most other companies, we saw a quite notable decline of these provisions because of the risen discount rate, I think, in Germany from 0.8 to 1.2. I think your provisions, as far as I can see that, didn't decline. Can you explain that, please? Yeah. I think this is a question for me, Mr. Hoymann. Very clear on this. Last year's discount rate was 0.66 in our BayWa statements, and we already announced at the year-end that we expect a downturn on the provision. That means an increase in the discount rate. We only account for this discount rate once a year. This will not be reflected over the year because it goes up and down during the year, and we just take it one time. The provision might be down by some EUR 40 million Q1 and to year-end 2020. This is what we expected, but we wait for the outcome on the year-end and do it not on a quarterly basis. All right. Understood. Okay. Thank you. What our pension specialist discussed with us is an increase from this 0.66 that I mentioned to 1.1 on our duration for the first quarter. Okay. All right. Thanks. Thank you. Next question from Norbert Kalliwoda, Dr. Kalliwoda Research. Hello. Congrats to your very nice results. I have some questions for you. I find it very interesting, this BayWa Mobility Solutions. For example, the keywords of e-mobility and your fueling cards. Which investments do you see in the future? Can you give us a little bit insight in the numbers of members, actually? My other question would be, you mentioned a new software implementation, and I heard the name SAP S/4HANA. Is it that you like to have similar systems, or do you refer on that system? Is it mainly for optimizing the inventory for the materials division, or do you plan generally to implement software for more divisions? Yeah. Thank you. Okay. Thank you. Thanks for your congratulations. The mobility company, BayWa Mobility Solutions company, has the following purpose. The first thing is that we are a consulting company or should be developed over the next years more and more, for companies, households, and so forth, how to handle the e-mobility challenge, so to say. It's a project development and a project consultancy company. That's one purpose. The other one is that we started to invest, last year in LNG, liquid natural gas, fuel stations all over Germany. I think we invested in 10 or 12 LNG stations. That's the second pillar. Each one is half a million. Huh? Each one is half a million. Each one is half a million euros, so times 10 or 12, so EUR 5 million-EUR 6 million, did we invest already in the LNG business. The BayWa Card, the fuel station card is part of the mobility business. Well, it's a small plant. We started two years ago, but it's already profitable, I think EUR 1.5 million or EUR 2 million. Which is of course not really significant for the overall picture. What we need to have is, and to do is, a new strategy and a type of compensation business models, because I expect a further downturn in the heating oil and the fuel, the classical fuel business. Also regarding the sustainability challenges. We have to change that over the next years, and I expect that a new, either federal government or in the new deal, in the Green Deal included from the European Union, that heating oil systems will be forbidden in the future. In so far, we need to do something to compensate and, of course, best solution would be to overcompensate this downturn. That's LNG, that's BayWa Card, and that's consultancy business. For instance, I'm a customer as well at home. My farmhouse, they organized the quick charger for my little GLE 500, my E-car and stuff like that. Also for companies. We develop, in that same sense, the program and the project for e-mobility. Coming to the software side, Andreas, you wanted to mention something here? Yeah. With the change of the SAP program that you mentioned, this is a project that we just started, the change from SAP S/4HANA. This is nothing new. We were already on SAP, it was a very complex SAP system that we run in the past. The challenge now for the next, it's a project over five years, it will be invest volume, I don't know, of more than EUR 100 million, I guess. EUR 20 each, but it is necessary to go into this change, and we are in the phase of defining or redefining the processes that we have, put them in a more modern state of art and also include the smart farming and smart approaches that we run throughout the business. It's nothing new, but it's a very challenging project that we run internally already. Thank you so much. May I ask a very short final question? I mean, it's hard to predict, but give us some words about CapEx in 2021, maybe, please. On the CapEx, I think first what we have to define, what is our CapEx? The CapEx, how I define it is everything that we need to keep the business running. CapEx is not including new investment in my definition. That is sometimes a little bit unclear in the discussions with whom I discuss with. Just to make it clear, the CapEx that we need to keep the business running, to improve the business, but not for new businesses. Therefore we always state in a number of something between EUR 100 million and EUR 125 million, EUR 150 million. In this range, CapEx is expected. I do not expect a negative impact or downturn impact from Corona in 2021. Everything is back on track again. Let's talk about the number of EUR 100 million, EUR 125 million. Okay. This is very fine. Thank you so much. Thank you. Welcome. Maybe one- Question from Knud. Apologies. Hello? Hello? Is the line open? Yes. We'll take one question. Yeah. Okay, great. From Pareto Securities. Good morning. Thank you very much for taking my three questions. Congrats on the good numbers in Q1. First question would be on equity, trade, and service. On the turnover we're seeing here, I would be interested how much of this can be attributed to cost savings from the restructuring program and how much of this was underlying business? That would be my first question. Second question, you alluded to the volatility of grain prices, and if I look at slide 11, I think it was, I see a very steady development regarding corn, but regarding wheat, that is actually very volatile. Please could you explain us, that are not so familiar with markets, what is behind that discrepancy? Thirdly, I have to try it. I probably won't say a lot on it, but regarding your guidance. At the end of last year, or during the presentation of 2020 numbers, you said you expect a slight increase of EBIT in the coming year. Given the first quarter numbers, in order to achieve only a slight increase of EBIT, we must see a significant drop of earnings for the remainder of the year. My question would be, do you see any risk that is actually going to happen or what is behind your cautiousness at this point in time? Thank you very much. Okay, thanks for the question. We start with the first question. The cost-cutting program in the r.e. business of Germany is not completely realized in the P&L statement yet. It's a small amount of money because the full impact we will see over the next quarters. To be honest, I can't tell you from the EUR 14 point something million what is really due to the cost-cutting program. HR cuts and infrastructure reorganization, this takes time, and it costs money as well. I think the full year impact we will see a little bit later. Andreas, is this correct? I think the improvement of the result could be very clear on this is operational. It's more the performance, less the cost savings so far for the first quarter. The last question regarding the guidance or guideline for 2021, whether we expect some significant downturn. Just take the volatility of the project business. For instance, if we had realized the two wind and solar projects in Japan and in France in the last quarter 2020, you wouldn't see it here. In other words, it has nothing to do with a downturn. It's just what can we finalize, what can we sell, and what can we report in our P&L statement. In so far, I would say it's a natural volatility. Without these profits from r.e., for instance, we would be still positive, but on a very low level, which is much better than usual, but it's not such a big jump. Here you see an improve of operational performance of around about EUR 73 million or EUR 74 million in comparison to the previous year. Due to the volatility, it can be that at the end of the year, for instance, we have to postpone some projects because we don't have the connection to the net. We are not through all these administration processes or whatever. It can always happen that we have a postponing impact on our balance sheet. A real downturn in the other businesses, we do not expect in 2021. I think it's stable. Just look to our commodity trading in Rotterdam. It sounds stable due to the specialty business. Well, I don't expect a downturn here. The machinery business, as I said, our order intake is extremely high, so the books are full. Maybe we have a little postponing due to the chip crisis because, for instance, hence the production, the manufacturing here in Bavaria had to stop over one week because they were not able to embed the chips or the chips were not available for the manufacturing process. Heating oil, well, I see a downturn in comparison to last year and the building material is stable and global produce is stable as well. This is inherent, so to say, volatility over one fiscal year. That's also the risk we have right now due to the excellent performance in the first three months, that people take the calculator and make a simple calculation times four, plus the uplift you have always in the last quarter, and then you don't have EUR 2,015 plus EUR XYZ million, but you have suddenly EUR 300 million real EBIT. This is due to the business model and models we have and the complexity of BayWa. This is not a fair process, so to say. Okay. What was the second question with the commodity prices? Knud, could you repeat the second question regarding commodity and wheat? Yeah. That was not clear for us. Yes. Of course. You showed the price development in wheat and in corn. In corn it appeared very stable and very continuous. While in wheat there was underlying volatility and the question for me is why is that the case? Why is that so different? I think that was slide 11. Here. This down draft and on wheat and corn is stable. First of all, the parameters are very complicated. More 34, 35 parameters who are creating then the price development in the commodity business. One key element is always the financial institutions investing in commodities, speed trader, algorithm trader, and all that stuff. They can change more or less overnight the pricing. Real serious forecast for the pricing is not possible. That's what I learned over the last 13 years. Nevertheless, fundamentally, we should have a stable price development due to the demand, the consumption and the growing volumes and the storage. That's over the last weeks or let me say in the first quarter, that we had to acknowledge that China especially is buying the volumes for grain more or less all over the world to make sure that the food security will be stable for China. There's one key element. China is always the unknown participant in this market development. This is very, very complicated. Protectionism, climate development, the water supply, currency issues, political turmoils and stuff like that are all parameters which are influencing the pricing in the commodities. Well, I don't know whether this answer is helping you, but it's so unclear. It's like a black box. Klaus, it might also be a timing issue because wheat is the leading currency, as we say, in the commodity. Volume-wise, it's by far the highest volume. They are running up and the others are running after them. Maybe it's just a timing issue. There's nothing fundamental that these movements of volatility are in such a discrepancy as it is shown here on the slide. Is this- If I may, just to add one comment on the outlook and the expectation. I think one thing should become very clear that we are not expecting a fundamental downturn to come in the operational segments. Those who are running with BayWa for a couple of years know that from the seasonality of our business, we always have, in the good old days, two points in the year where we reflected the business. That was the end of May and was the end of October. That reflects the seasonality that we have in the business. Once again, we did not change any forecasts or things like that due to the first quarter performance. It's a good and solid start for the year. It's not that we expect bad things to come, or we had a lot of postponing effects in the first quarter, seeing that might affect the other quarters, but it's rather too early to give a serious forecast situation, forecast outcome from the first quarter performance. Okay. Thank you very much. Anything else, or are we through now? No? Would you like to take another question? We'll take our next question from Sven Sauer, Kepler Cheuvreux. Hello, gentlemen. From my side, congratulations on the results. I have a few questions. First is on the agricultural equipment business unit. Was the business and the performance with the new machinery in line with your expectations and also in line with the new registrations that we saw in Germany? The second and third question are regarding the global produce business. On your slide, on slide 17, you state that you saw some logistical challenges in North America and Australia. Are you referring here to the container issues that we saw? The third question on the global produce is regarding on the Al Dahra business. Is this a significant part of the global produce business, and is it a higher or lower margin business than the rest? My final question is regarding the renewable energy business. Could the newly announced climate goals from the federal government in Germany trigger any changes to your medium- or long-term planning? To answer the last question in concrete, we don't expect a change in the business development and the budgets we agreed upon till 2028 together with the EIP, because there's a lot of political blah blah around, and Germany is one market, but not a key market at this point in time for us. It's more of the U.S., Australia, Japan, and some other Asian countries. That's interesting what Mr. Lutz said this morning. Well, I don't expect, let me say here, a significant push forward. A downturn, not at all, but not a real push forward because the problems you have here building wind and solar facilities as a power supply station, like Seville, for instance, or our Corazon farm in the U.S. with 170-200 MW, where you can provide, let me say, a midtown with energy or something like that. This is not easy to realize in Germany due to the opposition you normally create in the village and the cities and the little towns from the population. They expect a change in energy, but they do not want to be confronted with windmills and stuff like that. It's a little bit hypocritic as always. So far, no change. Coming to the first question, the tractors or the machinery business, we are not really in line with the market increase in the first quarter, that's right. Nevertheless, the registration of the machines in the first quarter, which is the increase and the overall market development, was on the basis of the purchases in 2020, between Christmas and New Year, normally. So far, this is a nice figure, but it's not really reflecting the operational market. Personally, I'm surprised that our order intake book is full and that we have a higher volume as last year, which I did not expect. I thought that we will have a calm and cooling down period now in the machinery business, but at this point in time, it's not yet the case. So far, I'm very pleased and very happy with this development. Regarding global produce, Andreas. Yeah, on the global produce, your question relates to the logistics challenges in North America and Australia. I guess it has less to do with shipments or with container freight. This has more to do with retail logistics, the lower demand from the retailers in Australia, the tomato business, and similar in North America. The shipment is just starting now. The new harvest is just now getting on its way to Europe and Asia. The last question related to Al Dahra. The Al Dahra contribution in the first quarter was contribution of positive EUR 2.5 million. Overall, on the whole year contribution, it might be seen by 5% of the total outcome should come out of Al Dahra so far. Thank you very much. We'll take another question from Michael Schäfer in Commerzbank. Yeah. Thanks for taking my two questions, basically, just quickly ones. After we have seen the new fertilizer regulation being implemented since May 1st last year, this is now the first fertilizer season under the new rules, so to say. I wonder, you show some 0.8% fertilizer volume growth on one of your slides, basically. I wonder whether you can shed some more light on how this is perceived in reality, basically, and whether you see curtailed demand coming from this regulation. This would be my first question. The second one is sticking to the X slide on page 15, basically. You are reporting seed growth volume-wise 27%, which looks like a quite high number. Can you just put into perspective what seed business means for you, maybe how this relates to the EUR 1 billion of sales, and what's behind significant acceleration here in the first quarter? Thank you. Some fertilizer. It's not a seasonal. The fertilizer business, as you know, is a very seasonal business. First quarter, if the weather conditions are fine as it is. Yeah. We are a full liner, of course, but the key fertilizer product is KAS, Kalkammonsalpeter. There is no significant change at this point in time. I guess from the outcome from the regulations, they expected a cut of some 25% overall in the business. Yes. Wasn't it this? Yeah. Just reflecting on the very early start now, we have an increase now in the first quarter, but this must be a seasonal effect. Overall, it will be reduced due to the regulation. Yeah, absolutely. We had a very nice weather in our core area. So far, that's a natural development. You can't calculate it up 12 months or so. Yeah. That's not possible. What is also happening, Michael Schäfer, is that the area of cultivation is slightly increasing. Due to higher commodity prices, it seems that it's more interesting for the farmers to cultivate more. For this reason, it's automatically they also have a higher demand for fertilizer. Maybe if I may, on the seed business, just reflecting the importance of the seed business in the overall agricultural business. I think it's a low volume business, but it's a better profitability. If I consider the seed activities in BayWa AG, our very successful daughter here in Utting next to Munich and also the Austrian business. Profit-wise, I would guess they would stably contribute something between EUR 5 million-EUR 8 million overall if I take all the activities together. It's an important, not volume-wise, but an important stable profit contributor. Maybe just broadly for the fertilizer business on top. Most of the regulation clauses have to do with the legal documentation process. So far, by the way, we have a chance also with our application for the fertilizer business from FarmFacts to support the farmers to optimize the input so far. This has not really an impact on the seasonality of the fertilizer business. Nevertheless, looking more fundamentally to the input business in the future, we expect that over the next years, we will see a significant reduction of the volumes, because we believe that in the crop protection business, more and more chemical products will be forbidden due to the mood and atmosphere in the European Parliament and the Commission. That's a European task, and so far, there will be a reduction. Also in the past, facing reductions in volumes had normally as a consequence that either the chemistry or other, let me say, organic companies, startups, which are becoming more and more important now, are compensating the volumes and the businesses because they have new products on the soil at the end of the day. The farmer needs fertilizer, the farmer needs crop protection products, otherwise, the volumes can't be granted. The food supply security and the prices will not be protected. I tell you what's going to happen, especially in Germany, if you have suddenly a 30%-40% increase for food prices, this is going to increase then political pressure on the government. That's a back-and-forth game. Outcome is not really clear, historically, you had always a compensation for the products which are not anymore allowed for the markets. Thank you very much. Right. Was there another question? Andreas. Michael Schäfer, maybe just on the seeds, the 27% increase year-on-year, that was mainly driven, I guess, and Josko just said it, on rapeseed, which came in earlier or last year it was not there, and so that was mainly rapeseed. I just looked at the numbers, the volumes that we have, for example, Dünger, it's over 600,000 tons. If you take Saatgut in total, it's 58,000 tons. It's just 1/10 of the volume, but a higher EBIT contribution. The rapeseed, we have an increase as well? In rapeseed, this year it was quite easy. This year it was quite easy to explain because the volume is higher, so the farmers planted more rapes as it was the previous year. You have a shortage, prices go up, then we have more acres seeded with. Pig cycle. Yeah, exactly. Yeah. That's a pig cycle process, normal one. That's also the difficulty you have for a clear and honest forecast, how to say. Volatility is extreme in this business. That's the reason why we, just for the new guys listening to us, that's always very complicated or it makes it very complicated to make a reasonable guidance. That's the reason why we just describe it and we don't put the figure on the table because you have very quickly, in a worst-case scenario, a downturn, or sometimes you have an upside, like in the first quarter now. It's always not easy to explain, even internally. Okay. I think there are no more questions. Isn't it? Good. There's no more questions. Bye. Okay. Thank you very much for your attention. The next conference call takes place on 5th of August. Until then, please stay healthy and take care. Bye-bye. Thank you. This will conclude today's conference.