KWS SAAT SE & Co. KGaA

Earnings Release • May 30, 2007

News Details

Corporate | 30 May 2007 07:30

KWS SAAT AG has a good third quarter

KWS SAAT AG / Quarter Results

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KWS SAAT AG has a good third quarter

Sales up by 6.5% – Operating profit increases by 28.5% – Higher operating
cash flow

(Einbeck, May 30, 2007/No.X/gf) – The KWS Group (ISIN: DE 0007074007) has
performed well in the first nine months of the current fiscal year, growing
its net sales by 6.5% to €428.3 (previous year: 402.2) million. This
positive trend is attributable to good sugarbeet seed business and
increased use of agricultural crops as a source of energy. Consolidated
operating profit (EBIT) therefore rose faster than sales, by 28.5% to €91.5
(71.2) million.

'We are very satisfied with our development as of the end of the third
quarter, since we have been able to profit from the dynamic situation in
the agricultural sector and expand our market position overall,' said Dr.
Hagen Duenbostel, Chief Financial Officer of KWS SAAT AG. 'As a result, we
are ahead of our forecast for the fiscal year as a whole. We currently
anticipate sales of just over €520 (previous year: 505) million and an
increase in operating profit of about 20% over the previous year (€46.7
million).'

Sugarbeet business better than expected

At the end of the third quarter, KWS posted sugarbeet sales of €171.7
(174.7) million. The decline in sales was 1.7%, lower than anticipated as a
result of the fact that the reduction in cultivation areas was not as
significant as had been forecast. 'To achieve the objectives of the reform
of the Sugar Market Regime, the EU will try to bring about larger
reductions in area for the 2008 sowing season,' said Duenbostel.

Corn and cereals are growing

In the first three quarters, the seed breeding company recorded strong
demand for corn and cereal seed. Corn sales increased by 14.6% to €203.8
million, mainly in North America and Germany. The segment now contributes
47.5% (44.2%) to the Group’s sales. In the cereals segment, KWS posted
sales of €48.7 (44.0) million, a rise of 10.7%, due to growth in the hybrid
rye business and the increased cultivation of barley.

Stronger increase in profit

The sugarbeet and cereals segments were the main contributors to the 28.5%
increase in operating profit to €91.5 (71.2) million. Earnings throughout
the company were also enhanced by successful inventory and receivables
management. The earnings situation in the corn segment is still strained by
the creation of sales structures in Southern and Southeast Europe. The
Group’s net income rose at March 31, 2007, to €62.2 (41.9) million, a
figure that includes a credit balance of around €7 million in corporate
income tax.

Higher cash flow

At March 31, 2007, the KWS Group improved its net cash from operating
activities to €7.9 (2.7) million. Cash and cash equivalents rose to €48.6
(38.9) million. The Group’s equity ratio is 55.0% (58.6% at June 30, 2006).

KWS invested €18.6 (17.3) million in the first nine months. As a result,
capital expenditure is above depreciation, which stood at €11.3 (12.5)
million. Most of this expenditure was channeled to the breeding and
services segment and thus to product development. KWS invested 74% of the
total in Europe, more than half of that in Germany.

Outlook

The Executive Board of KWS expects a sales volume of just over €520
(previous year: 505) million for the fiscal year 2006/2007 ending June 30
and an increase in operating profit of some 20% relative to the previous
year (€46.7 million). Net income (previous year: €28.4 million) will be
positively impacted by credit balances in corporate income tax in Germany.

The individual product segments:

in € million (at March 31) 9M/2006- Previous +/-
2007 year
Sales (consolidated) 428.3 402.2 +6.5%
Sugarbeet 171.7 174.7 -1.7%
Corn 203.8 177.8 +14.6%
Cereals 48.7 44.0 +10.7%
Breeding & services 4.2 5.7 -26.3%
Operating profit (consolidated) 91.5 71.2 +28.5%
Sugarbeet 47.5 36.6 +29.8%
Corn 16.8 16.2 +3.7%
Cereals 6.9 2.9 +138%
Breeding & services 20.3 15.5 +30.9%
Net income after minority interests 62.2 41.9 +48.4%
(consolidated)
Operating cash flow 7.9 2.7 +192.6%

The quarterly report is available at www.kws.com/ir.

Contact:

Georg Folttmann

Phone: +49 (0)55 61 / 311-640

g.folttmann@kws.com

DGAP 30.05.2007

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

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