KWS SAAT SE & Co. KGaA

Earnings Release • Oct 31, 2006

News Details

Corporate | 31 October 2006 07:37

KWS SAAT AG betters its own forecasts

Corporate news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— KWS SAAT AG betters its own forecasts Revenues exceeds €500 million for first time – EBIT down 17% on year due to sugar market reform – Corn largest single segment for first time – Dividend overall at previous year’s level (Einbeck, Germany, October 31, 2006/No. 36/gf) – KWS SAAT AG (ISIN: DE 0007074007) exceeded its sales and results forecasts for the financial year ending on June 30, 2006. The KWS-Group consolidated sales were up 2% to €505.0 million (previous year: €495.3 million), thereby exceeding half a billion Euros for the first time. Higher sales have offset the decline in earnings more than expected. Earnings before interest and taxes (EBIT) were €46.7 million (previous year: €56.3 million), or 17.1% down on the year. The result was mainly driven by the reform of the European Sugar Market Regime (SMR), which led to a 20% reduction in sugar beet acreage. Yet KWS as the market leader shed only 17% in EU sales and even achieved 15% growth outside the EU. The KWS Group ended the financial year with a net income for the year of €28.4 million (previous year: €34.8 million). The Executive Board and Supervisory Board are proposing to the Shareholder Meeting a dividend of €1.00 plus an anniversary bonus of €0.20 per share to mark the company’s 150th anniversary. Total payout will therefore be unchanged on the year at €1.20. KWS was able to offset the SMR effect to some extent by means of diversification and a stronger presence on international markets. ‘We were above all able to improve our market position in the corn segment. Moreover we have made use of additional sales opportunities in energy plant markets for biodiesel and biogas”, said Andreas J. Büchting, CEO for the KWS SAAT AG. ‘Our innovative product varieties paid dividends yet again.” Foreign business on the increase Outside Germany, KWS is growing faster and now earns 76% (previous year: 75%) of its revenue abroad. ‘Today, KWS is one of the world’s four largest seed companies for agricultural crop plants. We have gained new customers especially in North America, South-Eastern Europe and Eastern Europe”, Büchting said. Investing in the future In the last financial year, the KWS Group continued to invest in its competitive position. About 15% of sales (€76 million) was again dedicated to research and development of new products. In addition, the company enlarged its production capacities and sales structures. More employees The number of KWS employees around the world increased to 2,652, or 102 more than the previous year, of whom 782 are employed by KWS SAAT AG and 1,180 in Germany. KWS SAAT AG employs 73 apprentices and 12 trainees. High cash flow – improved financial position In the last financial year, the KWS Group improved its free cash flow to €33.3 million (previous year: €-19.1 million) based on efficiency gains by working capital management. Operational cash flow was up to €53.4 million (previous year: €11.1 million) and the net cash position consequently augmented to €44.3 million (previous year: €24.0 million). Positive outlook In 2006/2007, KWS again expects a dynamic upswing in demand for energy plants. However, sugar beet acreage in the EU is likely to be further reduced. The company accordingly anticipates a constant level of net sales and a slightly improved operating income. Product segments in detail: in € million (to 30 June) 2005/06 Previous year Net Sales (Group) 505.0 495.3 Sugar beet 205.4 217.9 Corn 242.2 217.6 Cereals 50.2 52.4 Breeding & services 7.2 7.4 Operating income EBIT (Group) 46.7 56.3 Sugar beet 24.9 31.0 Corn 10.4 10.6 Cereals 1.8 3.6 Breeding & services 9.6 11.1 Net income for the year (Group) 28.4 34.8 Operative cash flow 53.4 11.1 The Annual Report 2005/2006 and the management notes for the press conference on October 31, 2006 in Hanover are available from 10:00 a.m. at http://www.kws.com. Contact: Dr. Henning von der Ohe Tel.: +49 (0)5561 311 245 h.vonderohe@kws.com (c)DGAP 31.10.2006 ————————————————————————— 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 —————————————————————————