KWS SAAT SE & Co. KGaA

Earnings Release • Oct 30, 2008

News Details

Corporate | 30 October 2008 08:00

KWS SAAT AG again grows net sales and earnings

KWS SAAT AG / Final Results

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KWS SAAT AG again grows net sales and earnings

Net sales rise by 11% to €600 million – Investments in market development
pay off – EBIT up 10% – Net income increases by 43% – Dividend raised to
€1.70

(Einbeck, October 30, 2008/No.33/gf) – KWS SAAT AG (ISIN: DE 0007074007),
one of the world’s leading seed companies, again grew strongly and
profitably in the financial year ended on June 30, 2008.The Group’s net
sales increased by 11.4% to €599.1 million. Earnings before interest and
taxes (EBIT) increased by 9.7% to €70.1 million. Net income – aided by a
positive financial result – was €54.6 (38.2) million, from which a dividend
of €1.70 (€1.40) a share is to be distributed. Earnings per share improved
to €7.74 (€5.61).

Corn business clearly exceeds expectations

Corn, which is now the Group’s largest segment, grew more strongly than
expected in fiscal 2007/2008. 'We have greatly increased our net sales in
the corn segment, particularly in the strategic growth region of
Southeastern Europe, but also in Germany and France,' said Philip von dem
Bussche, Chairman of the Executive Board of KWS SAAT AG. 'Net sales in the
sugarbeet segment were just under the figure for the previous year, as we
largely compensated for the expected decline in net sales in the European
Union with our sales of genetically improved seed in the U.S. Cereals
business has picked up nicely.'

Growth in Germany and abroad

In terms of volumes, KWS grew almost equally strongly in Germany and
abroad. Only the weaker dollar caused net sales in foreign countries
expressed as a ratio of total sales to fall by one percent to 75%. At the
previous year’s exchange rates, the KWS Group’s net sales would have been
4% higher.

Cash and cash equivalents increase by two-thirds to €113 million

The KWS Group’s great financial strength is also reflected in its net cash
from operating activities, which increased by 46% to €75 million. The free
cash flow was €57 million – more than double the previous year’s figure.
Cash and cash equivalents increased by two-thirds to €113 million. 'With an
equity ratio of nearly 60% and net cash of €106 million, KWS is solidly
financed. That puts KWS in a good position to deal with turbulence in the
financial markets,' remarked CFO Hagen Duenbostel.

Employees are the foundation of the company’s success

2,856 (2,739) employees worked for the KWS Group worldwide in fiscal
2007/2008, 860 (777) of them at KWS SAAT AG. Solid training and the
continuing development of junior staffers form the basis of KWS’ future.
For many years, the company has trained young people in numbers in excess
of what it itself needs. In the fiscal year just ended, 75 (72) apprentices
and 10 (12) trainees were employed by KWS SAAT AG alone.

Outlook: growth to continue

KWS will continue to increase its net sales in the current fiscal year
2008/2009. 'We currently expect to grow net sales by up to 10%, with all
our segments contributing,' said von dem Bussche. 'The higher cost of sales
means it will be a considerable challenge to match the previous year’s
outstanding results, but that is our goal.' As a medium-sized company with
a long tradition of family ownership, the focus of KWS’ corporate strategy
is to secure jobs and increase the company’s value for the long term.

The product segments in detail:

In € million (at 30 June) 2007/2008 Previous year
Consolidated net sales 599.1 537.9
Sugarbeet 194.8 199.9
Corn 328.9 275.5
Cereals 67.4 54.5
Breeding & services 8.0 8.1
Consolidated operating income (EBIT) 70.1 63.9
Sugarbeet 28.1 35.1
Corn 23.2 13.3
Cereals 9.0 5.3
Breeding & services 9.8 10.1
Net income for the year (Group) 54.6 38.2
Operative cash flow 74.6 51.1

The Annual Report 2007/2008 and the management presentations made at the
press conference on October 30, 2008, in Hanover are available as of 10:00
a.m. on the same day at http://www.kws.com/ir.

Contact:

Cord Warnecke

Phone: +49 (0)5561 / 311-622

E-mail: c.warnecke@kws.com
30.10.2008 Financial News transmitted by DGAP

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Language: English
Issuer: 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, Hamburg, Düsseldorf, München,
Stuttgart

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