KWS SAAT SE & Co. KGaA

Earnings Release • Oct 29, 2009

News Details

Corporate | 29 October 2009 08:00

KWS SAAT AG continues to grow in tough economic times

KWS SAAT AG / Final Results/Final Results

29.10.2009

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KWS SAAT AG continues to grow in tough economic times

Net sales rise by 20 % to EUR717 million - KWS grows in all segments thanks
to innovative varieties - EBIT up 11 % to EUR78 million - Dividend
increased to EUR1.80

(Einbeck, October 29, 2009/No.39/gf) - KWS SAAT AG (ISIN: DE0007074007),
one of the world's leading seed companies, again grew profitably in the
financial year ended on June 30, 2009, despite the global financial crisis.
Consolidated net sales increased by 19.7 % to EUR717.2 million. Earnings
before interest and taxes (EBIT) rose by 11.1 % to EUR77.9 million, less
than the increase in net sales as a result of higher production costs for
seed multiplication. Net income for the year was impacted by a lower figure
for net financial income/expenses and a higher tax rate, due to the fact
that the previous year saw higher financial income from a non-recurring
tax-free profit from disposals. The KWS Group's net income for the year
fell to EUR50.1 (54.6) million. Shareholders will participate in these good
earnings through a dividend of EUR1.80 per share, an increase of EUR0.10.
Earnings per share were EUR6.98 (EUR7.74).

Net corn sales increased for the tenth year in a row

Demand for high-quality, certified seed from KWS remained high, despite the
global slump in prices for agricultural raw materials. Sales in what is now
the largest segment, corn, again grew strongly. Growing demand for
bioenergy also contributed to this. 'Particularly our activities in
Germany, France and Northern Europe and sales of genetically modified
varieties in North America contributed to this gratifying growth in net
sales,' said Hagen Duenbostel, Chief Financial Officer of KWS SAAT AG.
'Business with sugarbeet seed surpassed our expectations. In the U.S., we
continued the success story of our herbicide-tolerant Roundup Ready(R)
sugarbeet in the second year after its launch. The strong increase in net
sales in the cereal segment is primarily attributable to very good hybrid
rye sales.'

Great financial strength and solid equity base

The KWS Group's financial strength continued to grow. Net cash from
operating activities increased by EUR7.4 million to EUR82.0 million.
Following record net cash used in investing activities of EUR59.4 (EUR18.1)
million, KWS posted a free cash flow of EUR22.6 (56.5) million. 'We will
continue to make large investments in research and development to expand
our market position and to secure organic growth long term,' said
Duenbostel. Cash and cash equivalents rose by EUR12.7 million to EUR125.6
million. Equity increased by EUR36.5 million as a result of the good
profit. Duenbostel noted, 'We are still solidly financed with an equity
ratio of almost 58 %.'

First prize for family-friendly KWS

KWS has selectively created new, high-quality jobs through large
investments. The number of people employed worldwide by the KWS Group in
fiscal year 2008/2009 increased by just over 10 % to 3,215 (2,856), of whom
913 (860) were at KWS SAAT AG. The German Minister of Family Affairs Ursula
von der Leyen bestowed the 'Family-Friendly Business' award on KWS in June
2009.

Outlook: Continuing organic growth

KWS aims to continue its organic growth in the current fiscal year
2009/2010. 'With continuing moderate growth in net sales, we intend to
again achieve the good operating income of the past fiscal year. This
growth is mainly expected from the corn segment. While we will probably not
be able to achieve the high level of net sales and income of the past year
in the cereals business, we expect stable sugarbeet business. We will hire
a large number of new employees for our extensive R&D projects, mainly at
headquarters in Einbeck,' said Duenbostel in summing up his forecast for
the current fiscal year, 2009/2010.

The product segments in detail:

In EUR million (at 30 June) 2008/2009 Previous year
Consolidated net sales 717.2 599.1
Sugarbeet 228.0 194.8
Corn 381.5 328.9
Cereals 84.3 67.4
Breeding & services 23.4 8.0
Consolidated operating income (EBIT) 77.9 70.1
Sugarbeet 23.2 28.1
Corn 25.2 23.2
Cereals 12.0 9.0
Breeding & services 17.5 9.8
Net income for the year (Group) 50.1 54.6
Operative cash flow 82.0 74.6

The Annual Report 2008/2009 and the management presentations made at the
press conference on October 29, 2009, in Hanover are available as of 10:00
a.m. on the same day at http://www.kws.de/ir.

Contact:

Dr. Henning von der Ohe

Phone: +49 (0)5561 / 311-245

h.vonderohe@kws.com

29.10.2009 Financial News transmitted by DGAP

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Language: English
Company: KWS SAAT AG
Grimsehlstraße 31
37574 Einbeck
Deutschland
Phone: +49 (0)5561 311-0
Fax: +49 (0)5561 311-322
E-mail: info@kws.com
Internet: www.kws.de
ISIN: DE0007074007
WKN: 707400
Indices: S-DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover;
Freiverkehr in Berlin, Düsseldorf, München, Hamburg,
Stuttgart

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