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Development of the KWS Group 2011/2012
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Investor Presentation
KWS SAAT AG
October 18, 2012
2 Investor Presentation Oct., 2012
Fundamentals of Agronomical Seed Business
Climate change °C
1-2% average increase in yield
Research & Development Crop losses (due to vermin & diseases)
Source: DBV
10% Vermin
14% Weeds
13% Fungal infections
15% Insects
After harvesting 10%
Before harvesting 42%
Farmland per capita (in ha)
Source: UNO, 2007
1950 2000 2050(e)
0.5
0.3
0.2
3 Investor Presentation Oct., 2012
216
154162
102
4841
3224 23 19
5 5
Global Importance of Agricultural Crops
Source: faostat.fao.org, May 2012 * Row Sugar Value, Source: zuckerverbaende.de, May 2012
Acreage 2010 in mn ha
not part of the KWS product portfolio
World production 2010 in mn t
651672
844
262
124
56 59
133
31
324
12 32
4 Investor Presentation Oct., 2012
TOP 5 Global Agricultural Seed Companies Sales of Agricultural Crops
DuPont / Pioneer
Vilmorin
Syngenta
Monsanto
Sales in Europe in € bn
1,33 USD/EUR
Source: Phillips McDougall Consultants; own estimate KWS
0.7
0.6
0.6
0.4
0.4
DuPont / Pioneer
Vilmorin
Syngenta
Monsanto 5.8
1,6
1,0
0.6
Global sales in € bn
1.33 USD/EUR
5)
3)
2)
1)
4)
4.7
1.6
1.0
1) Sales 2010/11 „Seeds & Genomics“ w/o vegetables; FY: September 1 to August 31
2) „Seeds“ sales, Agriculture Segment 2011; FY: January to December 31
3) Sales 2011 w/o flowers & vegetables; FY: January to December 31
4) Sales 2011/12(e); FY: July 1 to June 30
5) „Field seeds“ sales 2010/11; FY: July 1 to June 30
5 Investor Presentation Oct., 2012
Development of the KWS Group 2011/12
6 Investor Presentation Oct., 2012
KWS at a Glance Business development
The KWS group includes 63 companies
EBIT 116.6
R&D-expenses 113.5
Employees 3,560
Sales 855.4
In € mn 2010/11
140.9
126.6
3,851
986.3
2011/12 in %
15.3
20.8
11.5
8.2
7 Investor Presentation Oct., 2012
Track record 2007/08 – 2011/12
Sales in € mn EBIT in € mn
CAGR: +19.1% CAGR: +13.3%
Sales 2011/12: € 986.3 mn
EBIT 2011/12: € 140.9 mn
8 Investor Presentation Oct., 2012
Total Sales by Region and Business Segment 2011/12
Cereals 9%
Corporate 1% Others
4%
Europe (w/o Germany) 40%
North America 33%
Germany
23%
By Region By business segments
Sugarbeets* 32%
* Includes potato sales
Corn 58%
9 Investor Presentation Oct., 2012
Sales and EBIT-Margin of the KWS´ Business Segments 2007/08 – 2011/12
Corn Segment in € mn
Sugarbeet Segment in € mn
Cereals Segment in € mn
Net sales EBIT-margin Net sales EBIT-margin Net sales EBIT-margin
* Incl. potato sales
67 84
70 78 93
13% 14% 15%
19% 20%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2007/08 2008/09 2009/10 2010/11 2011/12 2007/08 2008/09 2009/10 2010/11* 2011/12 2007/08 2008/09 2009/10 2010/11 2011/12
572
10 Investor Presentation Oct., 2012
Sugarbeet Segment 2011/12
11 Investor Presentation Oct., 2012
Sugarbeet Segment Sales Breakdown by Sugarbeets and Potatoes 2011/12
Segment sales
€ 313.4 mn
Potatoes
10%
Sugarbeets 90%
12 Investor Presentation Oct., 2012
Sugarbeets EU-27 Net Sales Development and Market Share
108 112 113
132 129
2007/08 2008/09 2009/10 2010/11 2011/12
Net sales in € mn* 2007/08 – 2011/12
Market share* 2010/11
SESVanderHave 24%
KWS 37%
Strube 15%
Syngenta 9%
Desprez 5%
Betaseed 3% Maribo
3%
Lion Seeds 1%
Others 1%
* Sugarbeet seeds w/o potatoes
13 Investor Presentation Oct., 2012
Global Sugarbeet Business Net Sales and Market Share
281 267
247
228
195
2007/08 2008/09 2009/10 2010/11 2011/12
* Sugarbeet seeds w/o potatoes
SESVanderHave 22%
KWS 24%
Syngenta 14%
Strube 11%
ACH Seeds 7%
Betaseed 10%
Maribo 4%
Lion Seeds 2%
Others 1% Desprez
5%
Market share* 2010/11
Net sales in €mn* 2007/08 – 2011/12
14 Investor Presentation Oct., 2012
Corn Segment 2011/12
15 Investor Presentation Oct., 2012
Increase of Corn Acreage in Almost Every KWS Region
NE: DK, UK, NL, BE; SOE: HU, BG, AT, RO; NA: US; ME: PL, CZ, SK; SE: IT, ES, PT; OE: RU, UA
0.8 1.6 1.7 2.6 3 3.85.2
7.3
15
33
39
1 Kleffmann, KWS, USDA
Market volume 2011/121
in mn ha
EU-27: 13.5 mn ha (+7%)
USA: 39 mn ha (+4%)
16 Investor Presentation Oct., 2012
Corn EU 27 Net Sales Development and Market Share
EU-27 Acreage 13.5 mn ha
Pioneer 23%
Monsanto 14%
Vilmorin 12%
Syngenta 7%
Others 25%
KWS 19%
294
257
229
212
189
2007/08 2008/09 2009/10 2010/11 2011/12
Net sales in € mn 2007/08 – 2011/12
Market share* 2011/12
* Kleffmann, 2012
17 Investor Presentation Oct., 2012
Pioneer 35%
Corn North America Net Sales Development and Market Share
Nordamerika
Monsanto 35%
Syngenta 7%
Others 12%
AgReliant 7%
Dow 4%
Net sales in € mn 2007/08 – 2011/12
Market share2)
2011/12
39 mn ha
1)
2) Estimated data. KWS, 2011.
1) 50-50 JV with Vilmorin, France
18 Investor Presentation Oct., 2012
Sales in mn € 2008/09 – 2012/13(e)
China
Eastern Europe 28%
South America, Asia 36%
Other non EU 27 countries 36%
Breakdown of sales 2011/12
Corn – Other Regions
19 Investor Presentation Oct., 2012
KWS in Brazil
Estimated sales: Approx. € 30 mn (FY 2012/13)
• World‘s third largest corn market (approx. 15 mn ha)
• Tropical & subtropical climate
• Growing importance of GM-crops
• Significant competitors: Pioneer, Monsanto und Syngenta
20 Investor Presentation Oct., 2012
KWS in China
21 Investor Presentation Oct., 2012
KWS in China: More than 30 Years of Market Experience
More than 80% of the total Chinese corn acreage is in the temperate climate zone
2008 2011
10 11
39 38
Source: WVZ, Oct 2010
30
52
1992 2002
Source: EarthTrends, Oct. 2011
77 74
Others 4% Rapeseed
3%
Cotton 8%
Vegetables 31%
Temperate zone
Subtropical zone
Sugar consumption per capita in kg
China
Europe
Meat consumption per capita in kg
China
Europe
Rice 21%
Corn 33%
Seedmarket Splitup by Agricultural Crops
22 Investor Presentation Oct., 2012
Cereals Segment 2011/12
23 Investor Presentation Oct., 2012
40%
Net sales in € mn
Others
8%
Barley 12%
Rapeseed 8%
Wheat 22%
Rye 50%
Net sales breakdown by product group
2007/08 2008/09 2009/10 2010/11 2011/12
Net sales EBIT-margin
Cereals activities of the KWS Lochow Group 2011/12
24 Investor Presentation Oct., 2012
R&D and Outlook of the KWS Group
25 Investor Presentation Oct., 2012
KWS: Global Breeding
Breeding and distribution in over 70 countries
Breeding stations
Trial locations
26 Investor Presentation Oct., 2012
Research and Development at KWS – Highly Innovative & Tailor-made
• Approx. 1,200 employees have R&D duties
• 303 new varieties commercially registered in
2011/12
R&D expenses in recent years (in € mn)
Continually increasing R&D Budget
27
KWS Pipeline for GM Traits
Lead Gene
Identification
Proof of
Concept
Elite Event
SelectionDeregulation Commercialization
Roundup
Ready
Virus
Resistance
Winter
Beet
Fungal
Disease Control
Yield
Improvement
Glyphosate
Glyphosate
+ Insect Resistance
Drought
Tolerance
Nitrogen Use
Efficency
WH
EAT
Fungal
Disease Control
PO
TATO
Fungal
Disease Control
CO
RN
SU
GARBEETS
Oct., 2012 Investor Presentation
28 Investor Presentation Oct., 2012
Outlook 2012/13
Cross-segment administrative costs and other costs for long-term research
projects will be grouped together as Corporate Functional Costs.
Business Segments Outlook 2012/13
FY 2011/12
Corn Net sales EBIT-Margin
+ 10% ≥ 10%
€ 571.5 mn
13.6% (€ 77.8 mn)
Sugarbeet1)
Net sales EBIT-Margin
+/- 0% ~22%
€ 313,4 mn 25.5% (€ 79.9 mn)
Cereals Net sales EBIT-Margin
+ 5% ~ 18%
€ 93,3 mn 20.3% (€ 18.9 mn)
Corporate Revenues Corporate EBIT 2)
€ ~ 10 mn € ~ -35 mn
€ 8,1 mn
€ -35,7 mn
Total net sales EBIT-Marge
≤ 10% ~ 11%
€ 986.3 mn 14.3% (€ 140.9 mn)
1) incl. Potatoes 2) First time disclosed in FY 2011/2012
29 Investor Presentation Oct., 2012
Financials
30 Investor Presentation Oct., 2012
Net sales 2010/11
Net sales 2011/12
€ 855.4 mn
€ +94 mn € +19.8 mn € +15.5 mn € +1.6 mn
MA
Positive development of the sugarbeet business in the USA and Eastern Europe.
Direct business Rye. Licensed-based wheat business.
Major Sales Drivers 2011/12
SB = Sugarbeet Segment MA = Corn Segment (“Maize“) CE = Cereals Segment CO = Corporate
Successful business development in core regions. Increasing Acreage.
€ 986.3 mn
CE
SB
CO
31 Investor Presentation Oct., 2012
Major EBIT Drivers 2011/12
EBIT 2010/11
EBIT 2011/12
€ 116.6 mn
€ +14 mn € +14.2 mn € +4.4 mn € -8.3 mn
MA Increasing sales / operating margin
Additional added value Roundup Ready
Special items
Increasing Research
Increasing sales / operating margin
Special items
€ 140.9 mn
CE
SB
CO
Hybrid Rye
SB = Sugarbeet Segment MA = Corn Segment (“Maize“) CE = Cereals Segment CO = Corporate
32 Investor Presentation Oct., 2012
Income Statement of the KWS Group 2011/12 according to IFRS
Figures in EUR thousands 2011/12 2010/11 Change in %
Sales 986,296 855,375 15.31%
Cost of sales 521,343 433,365 20.30%
Gross profit on sales 464,953 422,010 10.18%
Selling expenses 161,355 138,501 16.50%
Research and development expenses 126,571 113,539 11.48%
General administrative expenses 59,494 59,997 -0.84%
Other operating income 62,637 43,755 43.15%
Other operating expenses 39,316 37,091 6.00%
Operating Income 140,854 116,637 20.76%
Net financial income/expenses -5,141 -6,974 -26.28%
Result of ordinary activities 135,713 109,663 23.75%
Income taxes 41,317 36,741 12.45%
Net income for the year 94,396 72,922 29.45%
Share of minority interest 2,752 2,669 3.11%
Net income after minority interest 91,644 70,253 30.45%
Earnings per share 13.89 10.64 30.55%
33 Investor Presentation Oct., 2012
Cash Flow Statement 2011/2012 according to IFRS
Figures in EUR thousands 2011/12 2010/11
Net income 94,396 72,922
Cash Earnings 117,832 104,126
Net cash from operating activities 104,161 101,213
Net cash from investing activities -56,578 -52,354
Net cash from financing activities -19,076 -10,237
Cash and cash equivalents 182,968 146,899
thereof cash and cash equivalents 142,569 110,278
thereof available-for-sale securities 40,399 36,621
Changes in cash and cash equivalents 36,069 9,685
34 Investor Presentation Oct., 2012
Assets
in € mn
Sustainable and Solid Balance Sheet Structure as of June 30, 2012
221 255 307 324 410
450 501
550 578
682
0
200
400
600
800
1.000
1.200
2007/08 2008/09 2009/10 2010/11 2011/12
Noncurrent assets Current assets
398 434 493 530 603
91 99 114 119
162 183
223 250 253
328
0
200
400
600
800
1.000
1.200
2007/08 2008/09 2009/10 2010/11 2011/12
Equity Noncurrent liabilities Current liabilities
Equities & liabilities
in € mn
35 Investor Presentation Oct., 2012
36 Investor Presentation Oct., 2012
Back up
37 Investor Presentation Oct., 2012
KWS Balance sheet as of June 30, 2012
Figures in EUR thousands 2010/112010/12 2010/11
Intangible assets 111,725 59,656
Property, plant and equipment 261,457 226,315
Other financial assets 37,100 38,392
Noncurrent tax assets 410,282 324,363
Inventories and biological assets 139,694 128,998
Trade receivables 309,422 268,209
Cash and cash equivalents at end of the year 182,968 146,899
Remaining current assets 49,950 33,495
Current assets 682,034 577,601
Total assets 1,092,316 901,964
Figures in EUR thousands 2010/11 2010/11
Suscribed capital 19,800 19,800
Capital reserve 5,530 5,530
Reatained earnings 553,258 483,925
Minoritiy interest 24,508 21,006
Equity 603,096 530,261
Long-term borrowings 23,033 19,421
Remaining noncurrent liabilities 138,451 99,304
Noncurrent liabilities 161,484 118,725
Short-term borrowings 52,119 14,205
Remaining current liabilities 275,617 238,773
Current liabilities 327,736 252,978
Total equity and liabilities 1,092,316 901,964
38 Investor Presentation Oct., 2012
Taxes 2011/12
Figures in EUR thousands
Earnings before income taxes 135.7 (100%) 109.6 (100%)
Expected income tax expense* 39.5 (29.1%) 31.9 (29.1%)
Difference in income tax liabilities outside Germany 0.7 (0.5%) 2.8 (2.6%)
Tax portion for tax-free income -0.1 -(0.1%) -0.2 -(0.2%)
Tax portion for others 1.2 (0.9%) 2.2 (2.0%)
Reported income tax expense 41.3 (30.4%) 36.7 (33.5%)
2011/12 2010/11
A good third of our total sales are from countries with a tax rate of more than 30% whereas just more than a fifth are from countries
with a tax rate of less than 25%
39 Investor Presentation Oct., 2012
KWS´ Share Facts
Key figures per October 10, 2012 (Xetra)
WKN: 707400 ISIN: DE0007074007 Symbol: KWS No. Of shares: 6,600,000
Closing call: € 214.20 Market Cap.: € 1.4 bn Free Float Market Cap.: € 426 mn 52 weeks high/low: € 221.95 /€ 142.60
30.1 % Free float
13.8 % Tessner Beteiligungs GmbH
56.1 % Families Büchting / Arend Oetker / Giesecke
Shareholder structure
40 Investor Presentation Oct., 2012
November 29, 2012 1st Quarter Report 2012/2013
December 13, 2012 Annual Shareholders´ Meeting in Einbeck
February 26, 2013 2nd Quarter Report 2012/2013
May 28, 2013 3rd Quarter Report 2012/2013
October 23, 2013 Full year results 2012/2013, Annual press conference in Frankfurt, Analyst conference in Frankfurt
December 19, 2013 Annual Shareholders´ Meeting in Einbeck
Financial Calender
41 Investor Presentation Oct., 2012
The Executive Board
Dr. Christoph Amberger (1957)
• Member of the Executive Board since 2001
• Responsibility: Corn, Cereals, Marketing
• Prior working experience: Bayer AG and Bayer Italia S.p.A.
• Degree in Agro Sciences Major Business Admin. Doctorate Dr. sc. agr.
Dr. Léon Broers (1960)
• Member of the Executive Board since 2007
• Responsibility: Research & Breeding, Energy plants
• Prior working experience: Nunhems / Bayer CropScience
• Degree in Agro Sciences Major Business Admin. Doctorate Dr. sc. agr.
Dr. Hagen Duenbostel (1970)
• Member of the Executive Board since 2003
• Responsibility: Finance, Controlling, IT, Legal, IR
• Prior working experience: PwC
• Degree in Business Administration. Doctorate Dr. rer. pol.
Philip von dem Bussche (1950)
• CEO / Member of the Executive Board since 2005
• Responsibility: Corporate Affairs, Sugarbeet, Human Resources
• Prev. President of the German Agricultural Association (DLG), farmer
• Degree in Business Administration
42 Investor Presentation Oct., 2012
Disclaimer
These materials are not an offer for sale of Subscription rights or Securities in the United States. Subscription rights
and Securities may not be offered or sold in the United States without registration or an exemption from registration
under the U.S Securities Act of 1993, as amended. KWS SAAT AG does not intend to register any portion of the
offering in the United States or to conduct a public offering in the United States or to conduct a public offering of
Subscription rights or Securities in the United States.
This document contains certain forward-looking statements relating to the business, financial performance and results
of KWS SAAT AG and/or its subsidiaries and/or the industry in which KWS SAAT AG and its subsidiaries operate. These
forward-looking statements are based on KWS’ current plans, estimates, projections and expectations. These
statements are based on certain assumptions that, although reasonable at this time, may prove to be erroneous.
Prospective investors should not place undue reliance on these forward-looking statements.
If certain risks and uncertainties materialize, or if certain underlying assumptions prove incorrect, events described in
this document as anticipated, believed, estimated or expected may not occur, and KWS SAAT AG may not be able to
achieve its financial targets and strategic objectives. This presentation should not be viewed as definitive legal, tax, or
other advice regarding investment. All interested investors should seek independent third party legal, tax, and other
advice.
KWS SAAT AG does not intend, and does not assume any obligations, to update industry information or forward-
looking statements set forth in this document. KWS SAAT AG assumes no responsibility or liability in regard to the
completeness of the contents and the accuracy of opinions, estimates, prognoses, calculations, or other information
contained in this presentation. This presentation may contain confidential information. Neither the presentation nor
any of its contents may be reproduced or otherwise made available to third parties.
43 Investor Presentation Oct., 2012
IR Contact Persons
Georg Folttmann
Head of Investor Relations
+49 5561 311-640
g.folttmann@kws.com
KWS SAAT AG
Grimsehlstr. 31
D-37555 Einbeck
Wolf-Gebhard von der Wense
Investor Relations
+49 5561 311-968
w.vonderwense@kws.com
KWS SAAT AG
Grimsehlstr. 31
D-37555 Einbeck
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