KWS SAAT SE & Co. KGaA

Earnings Release • Feb 28, 2008

News Details

Corporate | 28 February 2008 07:30

KWS SAAT AG – higher sales from good winter cereal and rapeseed business

KWS SAAT AG / Miscellaneous

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KWS SAAT AG – higher sales from good winter cereal and rapeseed business

Forecast for the whole of fiscal 2007/2008 confirmed: net sales expected to
increase slightly, outstanding earnings of previous year to be matched

(Einbeck, February 28, 2008/No.7/gf) – KWS SAAT AG (ISIN: DE 0007074007)
operates in an industry with a highly seasonal nature. As a result, the
company generates only about 20 percent of its total revenue in the first
half of the fiscal year (July 1 to June 30). The main contributors to sales
– corn and sugarbeet – will not be sown until the spring of 2008. This,
coupled with the fact that costs are incurred relatively evenly over the
fiscal year, means that negative income in the first six months is typical
at KWS. It is not possible to extrapolate sales or earnings performance to
deduce figures for the fiscal year as a whole.

At December 31, 2007, KWS increased its net sales to €110.3 (91.4) million.
This strong level of business came on the back of growing sales of winter
cereals and rapeseed varieties. High prices and the cessation of set-aside
induced farmers to grow more wheat, rye and barley. There was also greater
demand for rapeseed. Despite a reduction in cultivation area for it in the
EU, KWS grew its sales in this product segment by winning market share.

Although sales grew, the higher cost of sales meant that operating income
was virtually unchanged at € –45.6 (–44.7) million. Seed production costs
increased in line with consumer prices. In addition, the company has
lastingly boosted breeding activities – in particular for energy plants –
and launched extensive projects relating to brand management. Net cash from
operations improved by €7.1 million, while cash and cash equivalents
increased to €91.9 (69.5) million.

Sugarbeet seed business in the EU will decline as expected in the 2008
sowing season. KWS intends to compensate for this by increasing net sales
in non-European markets. Despite the negative impact of the weak US dollar,
the Executive Board forecasts that the corn and cereals segments will post
slight growth in net sales and increase their income. However, this will be
offset by higher breeding costs. Overall, the KWS Group anticipates a
slight growth in net sales in fiscal year 2007/2008 (previous year: €538
million) and stable operating income (previous year: €63.9 million).

The individual product segments:

In million €(at September 30) H1/2007-2008 H1 previous year change (%)
Consolidated net sales 110.3 91.4 +20.7
Sugarbeet 21.4 22.8 -6.1
Corn 30.5 23.0 +32.6
Cereals 54.8 42.8 +28.0
Breeding & services 3.6 2.8 +28.6
Consolidated operating income -45.6 -44.7 -2.0
Consolidated net income for
the period -25.1 -22.3 -12.6
Net cash from operating
activities 18.5 11.4 +62.3

The quarterly report can also be obtained at www.kws.com/ir.

Contact:
Georg Folttmann
Phone: +49 (0)55 61 / 311-640
g.folttmann@kws.com
28.02.2008 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.de
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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