BayWa Group Capital Market Day BayWa Digitalization Strategy. Jörg Migende, Head of Digital Farming The Hague, 13/10/2016

Transcription

1 BayWa Group Capital Market Day 2016 BayWa Digitalization Strategy Jörg Migende, Head of Digital Farming The Hague, 13/10/2016

2 Agenda 1 Why is BayWa Agri-Services focusing on digital opportunities? 1.1 The threat of disruption 1.2 New business opportunities 1.3 Implementation 2 What does Smart Farming mean? 3 Why did we change ecommerce into ebusiness? Page 2

3 1 Why is BayWa Agri-Services focusing on digital opportunities? Page 3

4 BayWa creates added-value to the farmers gate: traditional position in the market Close to the farmers since 1923 One-stop-shop: inputs, Ag.equipment, commodity trading, energy, etc. BayWa s decentralized infrastructure is key to meet farmers needs for products and recommendations Own model farms with trial operations, 20 agronomists + other specialists Local and international network Not only sales Integrated offerings to the farmers: advice + sales + after sales services BayWa brand values from the farmers perspective: trust, solid foundation, innovative High customer loyalty Portfolio follows customer needs Source: Project Team Smart Farming Page 4

5 BayWa future challenge: the threat of disruption 365FarmNet? Start-ups Advice to the farmer based on big data analytics => digital proximity => sales will be easy to add Page 5

6 Competitors analysis: position of BayWa will be high competitive if they improve technical capabilities Financial strength Technical capabilities Agronomical Proximity to know-how farmer Top relevant companies Ag. chemicals Monsanto, Bayer Crop Science, BASF Plant Science Equipment providers John Deere, Trimble Fertilizer producers Mosaic, Yara Distributors BayWa, Invivo, Land O Lakes Consultants Ag. technology firms RELX (Farmade, Farmplan) F4F, Geo-Koncept, Granular, AEF, DKE Technology firms Google, Amazon Source: Project Team Smart Farming; A.T. Kearney No low competencies High competencies Page 6

7 Digital Farming: new business opportunities Source : Roland Berger Strategy Consultants GmbH Automotive Competence Center (July 2015): Business opportunities in Precision Farming: Will big data feed the world in the future?, München. Page 7

8 Implementation: the business unit BayWa Digital Farming Existing business: digitalization of BayWa New business: agronomic optimization ebusiness Smart Farming BayWa Online World FarmFacts GmbH Digital consultancy and services for better service (crop advisory, telematics, etc.) Farm management tools Yield increase / reduction of inputs through optimal agriculture realization (yield optimization) Provision of products (ecommerce) Digital processes between BayWa and farmers (eprocurement) Smart BayWa Agriculture & Smart Farmer Digital = Farming Page 8

9 2 What does Smart Farming mean? Page 9

10 Smart Farming helps growers in improving their yields with respect to where they stand today Stages of excellence for crop production and Smart Farming Vison of digital/smart farming Traditional Automated Variable rate Big data Satellite imaging GPS Aerial imaging (drones) GPS Integration breakthrough Camera Controlling breakthrough Local weather station Cloud data storage & analysis Advanced Farm Mgmt System Steering system Variable application map Variable rate technology Cloud based Farm Mgmt System Steering system Variable application map based on collaborative knowledge Variable rate technology Leading World-class Performance breakthrough Mechanisation without automation Minimalistic Farm Mgmt Information System (Excel) Standard Farm Mgmt System Steering system Application map Section control Traditional Emerging Continuous improvement with Smart Farming Page 10

11 BayWa as the Smart Farming enabler: milestone - acquisition of the leading FMIS and Smart Farming services company Products/Services : Software solutions (AO Agraroffice, NEXT Farming, special tools); Soil analyses; Satellite images, Sensoric => Digital crop advisory services; FarmFacts academy, etc. Company Profile Founded 1985, headquartered in Pfarrkirchen, Germany; 100% owned by BayWa since 2015 Employees approx. 100 Team: experienced team with know-how in programming and sales of smart farming solutions Customer base: approx. 30,000 customers in Germany, Poland, Hungary and Baltic States; and of these approx.10,000 FMIS user Page 11

12 How do we make money in Digital Farming? Product/Service Company Revenue FC 16 Software Farmer/OEM + Supportcontracts 4.3 m, market leader GER, order per customer 3T Big data maps ready for use, Soil analytics, Consulting 1.9 million, fast growing segment Sensors + SF Hardware 0.8 million Guidance Steering, Telematic Systems, High Tec Machinery 100 m (machinery Precision Farming Solutions (Inputs + Software/Hardware + Application maps + Data Connectivity) Pilot projects: - Fertilizer appl. - Planting - Biological pest control - Irrigation with Smart Farming components inside) Page 12

13 FarmFacts GmbH revenues FC Further growth potential Open the market to small and medium size farmers with the new NEXT Farming software line Add to software more digital advisory services based on big data, satellite data, agronomical know-how Internationalization Partnering with ag.machinery manufactures Cross selling with input business as a result of precision farming solutions (in T ) Page 13

14 What does a Precision Farming solution mean? Page 14

15 Site-specific seeding as an example of a BayWa Precision Farming solution 1 USP Farmer Ag. Machinery Unit Less Input costs Automatic Steering Connectivity Sensoric and Telematics 2 Agri-Services Unit Crop Advisory Service Field trials + Monitoring Seeds 3 Digital Farming Unit Farm Management Systeme Big Data Soil, Satellites, Farm Application maps Higher yield Digital Farming Ag. Agri Machinery Services Open system: Independently from any manufacturer High level of data privacy and security USP Society Less negativ enviromental impact Optimizing world food production Page 15

16 The potential of FarmFacts: walk the talk Munich/Pfarrkirchen: processing of data, producing application map Mubuyu Farm, Zambia: precision fertilizer application of 80 ha wheat (NEXT Farming Shape-file + Consultancy) Page 16

17 3 Why did we change ecommerce into ebusiness? Page 17

18 BayWa ebusiness: from the existing eshop to the BayWa Online World for enhanced connectivity with our customers Online Service Online Sales Online Advice BayWa Online Welt Telematics Our customers Page 18

19 Outlook: managing the internal change into a omnichannel organization 1 Digitalization of the existing business 2 New approaches /amendments to our core business 3 New, detached digital business models Plattform Future Topics Initiated Growth Smart Solutions Ideation & Incubation Acceleration BayWa Online World Digital Services In cooperation with: BayWa Core Business Smart Farming, Smart Housing BayWa Ideenpool Start-Ups Universities Start-Up Development Strategy Establishment Financing Management (Proceed or Fail Fast!) Omni-Channel 4 Digital Education BayWa Page 19

20 Thank you very much for your attention!