KWS SAAT SE & Co. KGaA

Earnings Release • Feb 28, 2007

News Details

Corporate | 28 February 2007 07:30

KWS SAAT AG reaffirms forecast following release of half-year figures

KWS SAAT AG / Half Year Results

Release of a Corporate-announcement, transmitted by DGAP - a company of
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KWS SAAT AG reaffirms forecast following release of half-year figures

Operating profits up 10% in H1 – Sales on a par with previous year

(Einbeck, Feb. 28, 2007/No. 3/gf) – KWS SAAT AG (ISIN: DE 0007074007) is
well on track after the first half of its current fiscal year ended
December 31, 2006. Sales reported by the KWS Group were EUR 91.4 million
(previous-year: EUR 91.3 million). Seasonally-related earnings before
interest and taxes (EBIT) improved 9.5% from EUR -49.4 million to EUR -44.7
million. The KWS Executive Board has reaffirmed its forecast for fiscal
2006-7 as a whole, according to which KWS Group sales will rise slightly on
the year and profits will increase significantly.

In H1, when winter grains and rapeseed are in particular demand, sales
increased over the previous year by 13.8% in the cereals segment and by
8.5% in the corn segment (including oil seed). Sugar beet business was down
21.6% under the influence of impending quota reductions by the EU
Commission as part of its Sugar Regime. H1 operating profits improved due
to the more profitable cereals business, stronger sales of rapeseed
hybrids, and structural adjustments in the sugar beet segment.

Strong cash flow – improved financial position

At December 31, 2006, thanks to enhanced inventory and receivables
management, the KWS Group improved free cash flow to EUR -2.4 million after
EUR -26.4 million year-on-year. The cash flow from current business
activities surged to EUR 11.4 million (after EUR -11.1 million a year
earlier). After the dividend disbursement, the net cash position rose to
EUR 69.5 million from EUR 55.6 million a year earlier.

In H1 2006/2007, KWS invested EUR 9.9 million in property, plant and
equipment, compared with EUR 11.0 million one year before. The investments
were thus higher than depreciation of EUR 7.1 million (EUR 7.3 million one
year before). The largest single capital outlays were in a corn processing
plant in North America and a new warehouse at the company’s HQ in Einbeck.

Forecast confirmed

The KWS Executive Board continues to expect that fiscal 2006/2007 (ending
June 30) will see a slight rise in sales volume (prior year: EUR 505.0
million). It predicts that the anticipated decline in sugar beet business
of as much as 10% will again be offset by growth in corn activities. Given
the good H1 income trend, operating income is likewise expected to increase
for the year as a whole (previous year: EUR 46.7 million). Moreover, a
corporate income tax credit in Germany will impact favorably on net income
for the year (previous year: EUR 28.4 million).

The individual product segments:

In millions of euros (Dec. 31) H1 2006/2007 Prior year +/-
Sales (consolidated) 91.4 91.3 0.0%
Sugar beet 22.8 29.1 -21.6%
Corn 23.0 21.2 +8.5%
Cereals 42.8 37.6 +13.8%
Breeding & services 2.8 3.4 -17.6%
Consolidated operating income -44.7 -49.4 +9.5%
Net consolidated income for the year -22.3 -33.7 +33.8%
Net cash from operating activities 11.4 -11.1 n. a.

The quarterly report can be downloaded at www.kws.de/ir.

For more information, please contact:

Georg Folttmann

Tel.: +49-5561-311-640

g.folttmann@kws.com

DGAP 28.02.2007

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.de
WWW: www.kws.de
ISIN: DE0007074007
WKN: 707400
Indices: S-DAX
Listed: Amtlicher Markt in Hannover; Geregelter Markt in Frankfurt
(General Standard); Freiverkehr in Berlin-Bremen, Düsseldorf,
Stuttgart

End of News DGAP News-Service

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