KWS SAAT SE & Co. KGaA

Earnings Release • Oct 31, 2007

News Details

Corporate | 31 October 2007 07:30

KWS SAAT AG shows solid growth

KWS SAAT AG / Final Results

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KWS SAAT AG shows solid growth

Net sales increased by 6.5% to €538 million – Proactive response to changes
in market conditions – EBIT up 36.8% – Dividend increased to €1.40

(Einbeck, October 31, 2007/No.29/gf) – KWS SAAT AG (ISIN: DE 0007074007),
one of the leading international seed companies, grew profitably in the
financial year ending on June 30, 2007. The KWS Group’s net sales increased
by 6.5% to €537.9 million. Earnings before interest and taxes (EBIT) soared
by 36.8% to €63.9 million, in particular as a result of proactive measures
to optimize costs in the sugarbeet business. Net income was €38.2 (28.4)
million, from which a dividend of €1.40 (€1.20) a share is to be
distributed. Earnings per share improved to €5.61 from €4.16 the previous
year.

Balanced product portfolio
KWS benefited in the past fiscal year from an expansion in global corn
production. 'We maintained our high sales volume in sugarbeet seed and grew
our corn business. We now generate more than half of the Group’s sales in
the corn segment,' said Andreas J. Büchting, Chairman of the Executive
Board of KWS SAAT AG. 'However, we will not neglect our important
traditional sugarbeet segment and are aiming to post significant growth,
above all in markets outside the EU.' KWS’ smaller cereals segment also
recovered sharply in the past fiscal year, regaining its former earnings
strength.

Strong foreign business
KWS has a presence in about 70 countries worldwide in the moderate climatic
zone. It achieved its excellent growth in roughly equal parts in Germany
and abroad. As in the previous year, revenue abroad accounted for 76% of
total net sales. 'As one of the most important international vendors of
seed for agricultural crops, we have acquired new customers particularly in
North America, Southeastern and Eastern Europe and Germany,' said Büchting.

KWS’ most valuable assets: its employees
2,739 (2,652) employees worked for the KWS Group worldwide in fiscal
2006/2007, 777 (782) of them at KWS SAAT AG. The company takes its social
responsibility seriously and continues to train more young people than
needed for its staff requirements. 72 (73) apprentices and 12 (12) trainees
were employed in the year under review.

Good financial position, increasing liquidity
KWS strongly increased its net cash position to €60 (44) million in the
past fiscal year. Net cash from operating activities fell slightly to €51
(53) million as pension commitments of €11 million were funded externally.
Free cash flow was €24 (33) million, and the equity ratio rose from 59% to
60%.

Outlook
KWS will stick to its course of growing net sales in the current fiscal
year 2007/2008. As plans stand at present, it aims to post earnings at
prior-year level. As a medium-sized company with a long tradition of family
ownership, the focus of KWS’ corporate strategy is to increase the
company’s value for the long term.

Personnel matters
At its meeting yesterday, the Supervisory Board of KWS SAAT AG appointed
Philip von dem Bussche as the new Chairman of the Executive Board. He
succeeds Dr. Andreas J. Büchting, who will be nominated for election to the
Supervisory Board at the upcoming Annual Shareholders' Meeting on December
13, 2007. The contract of Philip von dem Bussche was consequently extended
through the end of 2012. The contract of another member of the Executive
Board, Dr. Christoph Amberger, was also extended for five years.

Product segments in detail:

In € million (at 30 June) 2006/2007 Previous year
Consolidated net sales 537.9 505.0
Sugarbeet 199.9 205.4
Corn 275.5 242.2
Cereals 54.5 50.2
Breeding & services 8.0 7.2
Consolidated operating income (EBIT) 63.9 46.7
Sugarbeet 35.1 24.9
Corn 13.3 10.4
Cereals 5.4 1.8
Breeding & services 10.1 9.6
Net income for the year (Group) 38.2 28.4
Operative cash flow 51.1 53.4

The Annual Report 2006/2007 and the management remarks at the press
conference of October 31, 2007, in Hanover are available as of 10:00 a.m.
the same day at http://www.kws.com/ir.

Contact:
Dr. Henning von der Ohe
Head of Corporate Communication
Phone: +49 (0)55 61 / 3 11-2 45
h.vonderohe@kws.com
31.10.2007 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.de
Internet: www.kws.de
ISIN: DE0007074007
WKN: 707400
Indices: S-DAX
Listed: Amtlicher Markt in Hannover; Geregelter Markt in Frankfurt
(General Standard); Freiverkehr in Berlin, Düsseldorf,
Stuttgart

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