KWS SAAT SE & Co. KGaA

Earnings Release • Nov 28, 2008

News Details

Corporate | 28 November 2008 08:00

KWS SAAT AG gets off to a successful start in fiscal 2008/2009

KWS SAAT AG / Quarter Results

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KWS SAAT AG gets off to a successful start in fiscal 2008/2009

Forecast of ten percent sales growth and stable operating income confirmed

(Einbeck, November 28, 2008/No.34/gf) – KWS SAAT AG (ISIN: DE 0007074007,
one of the leading international seed companies, has gotten off to a
successful start into its new fiscal year 2008/2009 (ending on June 30,
2009). The KWS Group’s sales rose to €82.8 million (61.9)*. In the first
three months from July to September, the company sells primarily winter
cereal and winter rapeseed varieties, which are sown in the fall. In
contrast, the main contributors to KWS’ net sales – corn and sugarbeet –
are not sown until spring. Accordingly, the company does not usually reach
the breakeven point until the third quarter. Operating income at September
30 was € -11.2 (€ -15.3) million. Net financial income/expenses was €0.1
(5.7) million. The previous year’s income contains extraordinary profit on
realization. Income after taxes in the first quarter was € -6.3 (€ -3.7)
million.

Potato activities of the joint venture Van Rijn – KWS B.V. launched

The proportionately (50%) consolidated joint venture Van Rijn – KWS B.V.
began operations on July 1, 2008, and is preparing for the coming seed
potato season in spring 2009. The gratifying increase in sales in the
cereals segment in the first three months is largely attributable to
successful hybrid rye business in Germany and Northern Europe. Winter
rapeseed determines how the corn segment performs in the first months of
the new fiscal year: Rapeseed sales volumes remained stable. Slightly
higher prices resulted in an increase in net sales at the segment. Net
sales at the sugarbeet seed were down year-on-year.

Outlook: continuing our growth

KWS will continue to grow its net sales in the current fiscal year
2008/2009. 'We currently expect an increase in net sales of about ten
percent,' is the forecast of Philip von dem Bussche, Chairman of the
Executive Board of KWS SAAT AG. Constant net sales, yet rising costs will
mean that the sugarbeet segment will post lower income. KWS expects
increased sales and higher costs in the corn segment, so income should be
approximately on a par with that of the previous year. A good level of
income is anticipated in the cereals segment, likely offsetting the weaker
income expected from sugarbeet. 'As far as can be seen at present, KWS will
be able to match the outstanding operating result of the past fiscal year,'
said Philip von dem Bussche.

In the first quarter, the KWS Group had just over 3,100 employees. Plans
call for this level to be maintained throughout fiscal 2008/2009. This
would correspond to an increase in the size of the workforce by almost 10%
over that of the previous year (2,856). The research and development unit
in Einbeck will be strengthened in particular.

* The figures in parentheses are those for the previous year

KWS launches employee stock participation program

The employees of KWS ensure the company’s lasting success. For that reason,
their participation in the long-term success of our company is to be
enabled to a greater extent than before, thus increasing their ties of
loyalty to the company. To that end, KWS is launching a new employee stock
participation program. In all, the stock purchase program will have a
volume of up to 30,000 KWS shares. At a discounted price 20% below the
stock market price, all employees – with the exception of members of
management and control bodies – will be able to purchase up to 500 shares
each. In the current fiscal year, the program is initially restricted to
the employees of the KWS Group in the EU 27 and to the period between
December 1, 2008, and January 31, 2009.

Product segments in detail:

In € million (at June 30) Q1 2008/2009 Q1 previous year
Consolidated net sales 82.8 61.9
Sugarbeet 4.8 6.3
Corn 20.4 17.4
Cereals 56.1 36.3
Breeding & services 1.5 1.9
Consolidated operating income (EBIT) -11.2 -15.3
Net income for the year -6.3 -3.7

The report for the first quarter of 2008/2009 can be obtained at
http://www.kws.com/ir.

Contact:

Georg Folttmann

• Head of Investor Relations -

Phone: +49 (0)5561 / 311-640

g.folttmann@kws.com
28.11.2008 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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