Investor PresentationKWS SAAT AGOctober 18, 2012
Fundamentals of Agronomical Seed Business                                            Farmland per capita                  ...
Global Importance of Agricultural Crops       216                                                                        A...
TOP 5 Global Agricultural Seed Companies     Sales of Agricultural Crops     Global sales                 in € bn         ...
Development of the KWS Group    2011/125      Oct., 2012   Investor Presentation
KWS at a Glance    Business development        In € mn                2010/11       2011/12   in %         Sales          ...
Track record    2007/08 – 2011/12        Sales in € mn                           EBIT in € mn         CAGR: +13.3%        ...
Total Sales by Region and Business Segment     2011/12                                                                    ...
Sales and EBIT-Margin of the KWS´ Business Segments    2007/08 – 2011/12           Corn Segment                           ...
Sugarbeet Segment     2011/1210     Oct., 2012   Investor Presentation
Sugarbeet Segment Sales     Breakdown by Sugarbeets and Potatoes 2011/12            Potatoes            10%               ...
Sugarbeets EU-27     Net Sales Development and Market Share      Net sales in € mn*                                       ...
Global Sugarbeet Business     Net Sales and Market Share      Net sales in €mn*                                          M...
Corn Segment     2011/1214     Oct., 2012   Investor Presentation
Increase of Corn Acreage in Almost Every KWS Region                                                  1     Market volume 2...
Corn EU 27     Net Sales Development and Market Share     Net sales in € mn                                              M...
Corn North America     Net Sales Development and Market Share                                                 1)          ...
Corn – Other Regions     Sales in mn €                           Breakdown of sales     2008/09 – 2012/13(e)              ...
KWS in Brazil     • World‘s third largest corn market       (approx. 15 mn ha)     • Tropical & subtropical climate     • ...
KWS in China20      Oct., 2012   Investor Presentation
KWS in China:     More than 30 Years of Market Experience                                                                 ...
Cereals Segment     2011/1222      Oct., 2012   Investor Presentation
Cereals activities of the KWS Lochow Group 2011/12     Net sales                                                          ...
R&D and                  Outlook of the                   KWS Group24   Oct., 2012   Investor Presentation
KWS: Global Breeding                                               Trial locations                                        ...
Research and Development at KWS –     Highly Innovative & Tailor-made     • Approx. 1,200 employees have R&D duties     • ...
KWS Pipeline for GM Traits                                                    Lead Gene       Proof of   Elite Event      ...
Outlook     2012/13          Business Segments                                         Outlook             FY             ...
Financials29   Oct., 2012   Investor Presentation
Major Sales Drivers     2011/12     SB = Sugarbeet Segment     MA = Corn Segment (“Maize“)     CE = Cereals Segment     CO...
Major EBIT Drivers     2011/12     SB = Sugarbeet Segment     MA = Corn Segment (“Maize“)     CE = Cereals Segment        ...
Income Statement of the KWS Group     2011/12 according to IFRS     Figures in EUR thousands                 2011/12     2...
Cash Flow Statement     2011/2012 according to IFRS     Figures in EUR thousands                    2011/12     2010/11   ...
Sustainable and Solid Balance Sheet Structure     as of June 30, 2012     Assets           1.200     in € mn              ...
35   Oct., 2012   Investor Presentation
Back up36   Oct., 2012   Investor Presentation
KWS Balance sheet     as of June 30, 2012     Figures in EUR thousands                          2010/11                   ...
Taxes     2011/12     Figures in EUR thousands                                 2011/12          2010/11     Earnings befor...
KWS´ Share Facts                                                                                               13.8 %     ...
Financial Calender     November 29, 2012                      1st Quarter Report 2012/2013     December 13, 2012          ...
The Executive Board                              Philip von dem Bussche (1950)                              •   CEO / Memb...
Disclaimer     These materials are not an offer for sale of Subscription rights or Securities in the United States. Subscr...
IR Contact Persons                    Georg Folttmann              Wolf-Gebhard von der Wense                    Head of I...
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KWS Investor Presentation October 2012

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Development of the KWS Group 2011/2012

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KWS Investor Presentation October 2012

  1. 1. Investor PresentationKWS SAAT AGOctober 18, 2012
  2. 2. Fundamentals of Agronomical Seed Business Farmland per capita (in ha) 0.5 0.3 0.2 1950 2000 2050(e) Source: UNO, 2007 Crop losses (due to vermin & diseases) Research & Development 10% Vermin After harvesting 10% 13% Fungal infections 14% Before harvesting 42% 1-2% average increase in yield Weeds 15% Insects Source: DBV Climate change °C2 Oct., 2012 Investor Presentation
  3. 3. Global Importance of Agricultural Crops 216 Acreage 2010 in mn ha 162 not part of the 154 KWS product portfolio 102 48 41 32 24 23 19 5 5 844 World production 2010 in mn t 672 651 324 262 124 133 56 59 31 12 32 Source: faostat.fao.org, May 2012 * Row Sugar Value, Source: zuckerverbaende.de, May 20123 Oct., 2012 Investor Presentation
  4. 4. TOP 5 Global Agricultural Seed Companies Sales of Agricultural Crops Global sales in € bn Sales in Europe in € bn 1.33 USD/EUR 1,33 USD/EUR 1) Monsanto 5.8 DuPont / Pioneer 0.7 2) DuPont / Pioneer 4.7 Syngenta 0.6 3) Syngenta 1,6 1.6 0.6 4) 1,0 1.0 Vilmorin 0.4 5) Vilmorin 0.6 Monsanto 0.4 1) Sales 2010/11 „Seeds & Genomics“ w/o vegetables; Source: Phillips McDougall Consultants; own estimate KWS FY: September 1 to August 31 2) „Seeds“ sales, Agriculture Segment 2011; FY: January to December 31 3) Sales 2011 w/o flowers & vegetables; FY: January to December 31 4) Sales 2011/12(e); FY: July 1 to June 30 5) „Field seeds“ sales 2010/11; FY: July 1 to June 304 Oct., 2012 Investor Presentation
  5. 5. Development of the KWS Group 2011/125 Oct., 2012 Investor Presentation
  6. 6. KWS at a Glance Business development In € mn 2010/11 2011/12 in % Sales 855.4 986.3 15.3 EBIT 116.6 140.9 20.8 R&D-expenses 113.5 126.6 11.5 Employees 3,560 3,851 8.2 The KWS group includes 63 companies6 Oct., 2012 Investor Presentation
  7. 7. Track record 2007/08 – 2011/12 Sales in € mn EBIT in € mn CAGR: +13.3% CAGR: +19.1% Sales 2011/12: EBIT 2011/12: € 986.3 mn € 140.9 mn7 Oct., 2012 Investor Presentation
  8. 8. Total Sales by Region and Business Segment 2011/12 Corporate Others 1% 4% Cereals 9% Germany 23% By Region By business segments Corn 58% Europe North America (w/o Germany) Sugarbeets* 33% 40% 32% * Includes potato sales8 Oct., 2012 Investor Presentation
  9. 9. Sales and EBIT-Margin of the KWS´ Business Segments 2007/08 – 2011/12 Corn Segment Sugarbeet Segment Cereals Segment in € mn in € mn in € mn 572 40% 35% 30% 25% 20% 19% 20% 14% 15% 13% 15% 84 93 10% 67 70 78 5% 0% 2007/08 2008/09 2009/10 2010/11 2011/12 2007/08 2008/09 2009/10 2010/11* 2011/12 2007/08 2008/09 2009/10 2010/11 2011/12 Net sales EBIT-margin Net sales EBIT-margin Net sales EBIT-margin * Incl. potato sales9 Oct., 2012 Investor Presentation
  10. 10. Sugarbeet Segment 2011/1210 Oct., 2012 Investor Presentation
  11. 11. Sugarbeet Segment Sales Breakdown by Sugarbeets and Potatoes 2011/12 Potatoes 10% Sugarbeets Segment sales 90% € 313.4 mn11 Oct., 2012 Investor Presentation
  12. 12. Sugarbeets EU-27 Net Sales Development and Market Share Net sales in € mn* Market share* 2007/08 – 2011/12 2010/11 Lion Seeds 1% Betaseed Others Maribo 3% 1% 3% Desprez 132 129 5% 108 112 113 Syngenta KWS 9% 37% Strube 2007/08 2008/09 2009/10 2010/11 2011/12 15% SESVanderHave 24% * Sugarbeet seeds w/o potatoes12 Oct., 2012 Investor Presentation
  13. 13. Global Sugarbeet Business Net Sales and Market Share Net sales in €mn* Market share* 2007/08 – 2011/12 2010/11 Lion Seeds Maribo 2% 4% Others Desprez 1% 281 267 5% 247 228 ACH Seeds 195 7% Betaseed 10% KWS 24% Strube 11% SESVanderHave 22% 2007/08 2008/09 2009/10 2010/11 2011/12 Syngenta 14% * Sugarbeet seeds w/o potatoes13 Oct., 2012 Investor Presentation
  14. 14. Corn Segment 2011/1214 Oct., 2012 Investor Presentation
  15. 15. Increase of Corn Acreage in Almost Every KWS Region 1 Market volume 2011/12 in mn ha EU-27: 13.5 mn ha (+7%) USA: 39 mn ha (+4%) 39 33 15 7.3 5.2 2.6 3 3.8 0.8 1.6 1.7 1 Kleffmann, KWS, USDA NE: DK, UK, NL, BE; SOE: HU, BG, AT, RO; NA: US; ME: PL, CZ, SK; SE: IT, ES, PT; OE: RU, UA15 Oct., 2012 Investor Presentation
  16. 16. Corn EU 27 Net Sales Development and Market Share Net sales in € mn Market share* 2007/08 – 2011/12 2011/12 294 KWS Others 19% 257 25% 229 212 189 EU-27 Acreage 13.5 mn ha Syngenta Pioneer 7% 23% 2007/08 2008/09 2009/10 2010/11 2011/12 Vilmorin 12% Monsanto 14% * Kleffmann, 201216 Oct., 2012 Investor Presentation
  17. 17. Corn North America Net Sales Development and Market Share 1) 2) Net sales in € mn Market share 2007/08 – 2011/12 2011/12 Others AgReliant 12% 7% Dow 4% Pioneer 35% Syngenta 7% Nordamerika 39 mn ha Monsanto 35% 1) 50-50 JV with Vilmorin, France 2) Estimated data. KWS, 2011.17 Oct., 2012 Investor Presentation
  18. 18. Corn – Other Regions Sales in mn € Breakdown of sales 2008/09 – 2012/13(e) 2011/12 Eastern Europe 28% Other non EU 27 countries 36% South America, Asia 36% China18 Oct., 2012 Investor Presentation
  19. 19. KWS in Brazil • World‘s third largest corn market (approx. 15 mn ha) • Tropical & subtropical climate • Growing importance of GM-crops • Significant competitors: Pioneer, Monsanto und Syngenta Estimated sales: Approx. € 30 mn (FY 2012/13)19 Oct., 2012 Investor Presentation
  20. 20. KWS in China20 Oct., 2012 Investor Presentation
  21. 21. KWS in China: More than 30 Years of Market Experience Sugar consumption per capita in kg Seedmarket Splitup by Agricultural Crops China Europe 39 38 Others Rapeseed 4% 3% 10 11 Cotton 2008 2011 8% Source: WVZ, Oct 2010 Corn 33% Rice Meat consumption per capita in kg 21% China Europe 77 74 Temperate zone Vegetables Subtropical zone 31% 52 30 More than 80% of the total Chinese corn acreage is in the temperate climate zone 1992 2002 Source: EarthTrends, Oct. 201121 Oct., 2012 Investor Presentation
  22. 22. Cereals Segment 2011/1222 Oct., 2012 Investor Presentation
  23. 23. Cereals activities of the KWS Lochow Group 2011/12 Net sales Net sales breakdown by product group in € mn Others 40% 8% Rapeseed 8% Rye 50% Barley 12% 2007/08 2008/09 2009/10 2010/11 2011/12 Wheat Net sales EBIT-margin 22%23 Oct., 2012 Investor Presentation
  24. 24. R&D and Outlook of the KWS Group24 Oct., 2012 Investor Presentation
  25. 25. KWS: Global Breeding Trial locations Breeding stations Breeding and distribution in over 70 countries25 Oct., 2012 Investor Presentation
  26. 26. Research and Development at KWS – Highly Innovative & Tailor-made • Approx. 1,200 employees have R&D duties • 303 new varieties commercially registered in 2011/12 R&D expenses in recent years (in € mn) Continually increasing R&D Budget26 Oct., 2012 Investor Presentation
  27. 27. KWS Pipeline for GM Traits Lead Gene Proof of Elite Event Deregulation Commercialization Identification Concept Selection Roundup Ready SUGARBEETS Virus Resistance Winter Beet Fungal Disease Control Yield Improvement Glyphosate Glyphosate CORN + Insect Resistance Drought Tolerance Nitrogen Use Efficency Fungal WHEAT Disease Control POTATO Fungal Disease Control27 Oct., 2012 Investor Presentation
  28. 28. Outlook 2012/13 Business Segments Outlook FY 2012/13 2011/12 Corn Net sales + 10% € 571.5 mn EBIT-Margin ≥ 10% 13.6% (€ 77.8 mn) Sugarbeet1) Net sales +/- 0% € 313,4 mn EBIT-Margin ~22% 25.5% (€ 79.9 mn) Cereals Net sales + 5% € 93,3 mn EBIT-Margin ~ 18% 20.3% (€ 18.9 mn) Corporate Revenues € ~ 10 mn € 8,1 mn Corporate EBIT 2) € ~ -35 mn € -35,7 mn Total net sales ≤ 10% € 986.3 mn EBIT-Marge ~ 11% 14.3% (€ 140.9 mn) 1) incl. Potatoes 2) First time disclosed in FY 2011/2012 Cross-segment administrative costs and other costs for long-term research projects will be grouped together as Corporate Functional Costs.28 Oct., 2012 Investor Presentation
  29. 29. Financials29 Oct., 2012 Investor Presentation
  30. 30. Major Sales Drivers 2011/12 SB = Sugarbeet Segment MA = Corn Segment (“Maize“) CE = Cereals Segment CO = Corporate CO CE SB € 986.3 mn Direct business Rye. Licensed-based wheat business. MA Positive development of the sugarbeet business in the USA and Eastern Europe. € 855.4 mn Successful business development in core regions. Increasing Acreage. € +94 mn € +19.8 mn € +15.5 mn € +1.6 mn Net sales Net sales 2010/11 2011/1230 Oct., 2012 Investor Presentation
  31. 31. Major EBIT Drivers 2011/12 SB = Sugarbeet Segment MA = Corn Segment (“Maize“) CE = Cereals Segment Increasing Research CO = Corporate CE CO SB Hybrid Rye € 140.9 mn Increasing sales / operating margin MA Additional added value Roundup Ready € 116.6 mn Special items Increasing sales / operating margin Special items € +14 mn € +14.2 mn € +4.4 mn € -8.3 mn EBIT EBIT 2010/11 2011/1231 Oct., 2012 Investor Presentation
  32. 32. Income Statement of the KWS Group 2011/12 according to IFRS Figures in EUR thousands 2011/12 2010/11 Change in % Sales 986,296 855,375 15.31% Cost of sales 521,343 433,365 20.30% Gross profit on sales 464,953 422,010 10.18% Selling expenses 161,355 138,501 16.50% Research and development expenses 126,571 113,539 11.48% General administrative expenses 59,494 59,997 -0.84% Other operating income 62,637 43,755 43.15% Other operating expenses 39,316 37,091 6.00% Operating Income 140,854 116,637 20.76% Net financial income/expenses -5,141 -6,974 -26.28% Result of ordinary activities 135,713 109,663 23.75% Income taxes 41,317 36,741 12.45% Net income for the year 94,396 72,922 29.45% Share of minority interest 2,752 2,669 3.11% Net income after minority interest 91,644 70,253 30.45% Earnings per share 13.89 10.64 30.55%32 Oct., 2012 Investor Presentation
  33. 33. Cash Flow Statement 2011/2012 according to IFRS Figures in EUR thousands 2011/12 2010/11 Net income 94,396 72,922 Cash Earnings 117,832 104,126 Net cash from operating activities 104,161 101,213 Net cash from investing activities -56,578 -52,354 Net cash from financing activities -19,076 -10,237 Cash and cash equivalents 182,968 146,899 thereof cash and cash equivalents 142,569 110,278 thereof available-for-sale securities 40,399 36,621 Changes in cash and cash equivalents 36,069 9,68533 Oct., 2012 Investor Presentation
  34. 34. Sustainable and Solid Balance Sheet Structure as of June 30, 2012 Assets 1.200 in € mn 1.000 800 682 600 550 578 501 400 450 200 324 410 221 255 307 0 2007/08 2008/09 2009/10 2010/11 2011/12 Noncurrent assets Current assets Equities & liabilities in € mn 1.200 1.000 328 800 253 250 162 600 223 183 114 119 91 99 400 530 603 200 398 434 493 0 2007/08 2008/09 2009/10 2010/11 2011/12 Equity Noncurrent liabilities Current liabilities34 Oct., 2012 Investor Presentation
  35. 35. 35 Oct., 2012 Investor Presentation
  36. 36. Back up36 Oct., 2012 Investor Presentation
  37. 37. KWS Balance sheet as of June 30, 2012 Figures in EUR thousands 2010/11 2010/12 2010/11 Intangible assets 111,725 59,656 Property, plant and equipment 261,457 226,315 Other financial assets 37,100 38,392 Noncurrent tax assets 410,282 324,363 Inventories and biological assets 139,694 128,998 Trade receivables 309,422 268,209 Cash and cash equivalents at end of the year 182,968 146,899 Remaining current assets 49,950 33,495 Current assets 682,034 577,601 Total assets 1,092,316 901,964 Figures in EUR thousands 2010/11 2010/11 Suscribed capital 19,800 19,800 Capital reserve 5,530 5,530 Reatained earnings 553,258 483,925 Minoritiy interest 24,508 21,006 Equity 603,096 530,261 Long-term borrowings 23,033 19,421 Remaining noncurrent liabilities 138,451 99,304 Noncurrent liabilities 161,484 118,725 Short-term borrowings 52,119 14,205 Remaining current liabilities 275,617 238,773 Current liabilities 327,736 252,978 Total equity and liabilities 1,092,316 901,96437 Oct., 2012 Investor Presentation
  38. 38. Taxes 2011/12 Figures in EUR thousands 2011/12 2010/11 Earnings before income taxes 135.7 (100%) 109.6 (100%) Expected income tax expense* 39.5 (29.1%) 31.9 (29.1%) Difference in income tax liabilities outside Germany 0.7 (0.5%) 2.8 (2.6%) Tax portion for tax-free income -0.1 -(0.1%) -0.2 -(0.2%) Tax portion for others 1.2 (0.9%) 2.2 (2.0%) Reported income tax expense 41.3 (30.4%) 36.7 (33.5%) A good third of our total sales are from countries with a tax rate of more than 30% whereas just more than a fifth are from countries with a tax rate of less than 25%38 Oct., 2012 Investor Presentation
  39. 39. KWS´ Share Facts 13.8 % Key figures per October 10, 2012 (Xetra) Tessner 56.1 % Beteiligungs GmbH WKN: 707400 Families Büchting / ISIN: DE0007074007 Arend Oetker / Giesecke Symbol: KWS No. Of shares: 6,600,000 30.1 % Closing call: € 214.20 Shareholder Free float structure Market Cap.: € 1.4 bn Free Float Market Cap.: € 426 mn 52 weeks high/low: € 221.95 /€ 142.6039 Oct., 2012 Investor Presentation
  40. 40. Financial Calender November 29, 2012 1st Quarter Report 2012/2013 December 13, 2012 Annual Shareholders´ Meeting in Einbeck February 26, 2013 2nd Quarter Report 2012/2013 May 28, 2013 3rd Quarter Report 2012/2013 October 23, 2013 Full year results 2012/2013, Annual press conference in Frankfurt, Analyst conference in Frankfurt December 19, 2013 Annual Shareholders´ Meeting in Einbeck40 Oct., 2012 Investor Presentation
  41. 41. The Executive Board Philip von dem Bussche (1950) • CEO / Member of the Executive Board since 2005 • Responsibility: Corporate Affairs, Sugarbeet, Human Resources • Prev. President of the German Agricultural Association (DLG), farmer • Degree in Business Administration Dr. Christoph Amberger (1957) • Member of the Executive Board since 2001 • Responsibility: Corn, Cereals, Marketing • Prior working experience: Bayer AG and Bayer Italia S.p.A. • Degree in Agro Sciences Major Business Admin. Doctorate Dr. sc. agr. Dr. Léon Broers (1960) • Member of the Executive Board since 2007 • Responsibility: Research & Breeding, Energy plants • Prior working experience: Nunhems / Bayer CropScience • Degree in Agro Sciences Major Business Admin. Doctorate Dr. sc. agr. Dr. Hagen Duenbostel (1970) • Member of the Executive Board since 2003 • Responsibility: Finance, Controlling, IT, Legal, IR • Prior working experience: PwC • Degree in Business Administration. Doctorate Dr. rer. pol.41 Oct., 2012 Investor Presentation
  42. 42. Disclaimer These materials are not an offer for sale of Subscription rights or Securities in the United States. Subscription rights and Securities may not be offered or sold in the United States without registration or an exemption from registration under the U.S Securities Act of 1993, as amended. KWS SAAT AG does not intend to register any portion of the offering in the United States or to conduct a public offering in the United States or to conduct a public offering of Subscription rights or Securities in the United States. This document contains certain forward-looking statements relating to the business, financial performance and results of KWS SAAT AG and/or its subsidiaries and/or the industry in which KWS SAAT AG and its subsidiaries operate. These forward-looking statements are based on KWS’ current plans, estimates, projections and expectations. These statements are based on certain assumptions that, although reasonable at this time, may prove to be erroneous. Prospective investors should not place undue reliance on these forward-looking statements. If certain risks and uncertainties materialize, or if certain underlying assumptions prove incorrect, events described in this document as anticipated, believed, estimated or expected may not occur, and KWS SAAT AG may not be able to achieve its financial targets and strategic objectives. This presentation should not be viewed as definitive legal, tax, or other advice regarding investment. All interested investors should seek independent third party legal, tax, and other advice. KWS SAAT AG does not intend, and does not assume any obligations, to update industry information or forward- looking statements set forth in this document. KWS SAAT AG assumes no responsibility or liability in regard to the completeness of the contents and the accuracy of opinions, estimates, prognoses, calculations, or other information contained in this presentation. This presentation may contain confidential information. Neither the presentation nor any of its contents may be reproduced or otherwise made available to third parties.42 Oct., 2012 Investor Presentation
  43. 43. IR Contact Persons Georg Folttmann Wolf-Gebhard von der Wense Head of Investor Relations Investor Relations +49 5561 311-640 +49 5561 311-968 g.folttmann@kws.com w.vonderwense@kws.com KWS SAAT AG KWS SAAT AG Grimsehlstr. 31 Grimsehlstr. 31 D-37555 Einbeck D-37555 Einbeck43 Oct., 2012 Investor Presentation

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