Kws Saat Se & Co Kgaa · XETR:KWS
Kws Saat Se & Co Kgaa — Investor Presentation (September 2024)
42 slides from Kws Saat Se & Co Kgaa's investor presentation, September 2024
Slide 1: Investor presentation September 2024
Investor presentation September 2024
Slide 2: Why invest in KWS?
WHY INVEST IN KWS?
Slide 3: Innovation-driven company turning sustainability in agriculture into growth
We are an innovation-driven company turning sustainability in agriculture into growth
Slide 4: Sustainability is anchored in our company values
Financial Environment Staying economically Developing ecologically viable through our durable solutions independence through our foresight Sustainability Sustainability is anchored in our company values Social Governance Acting socially Being a trusted partner responsible through through our reliabi
Slide 5: Independent and family-backed company with a track record of growth
We are independent and family-backed company with a track record of growth by providing innovative solutions for farmers
Slide 6: Leading plant breeding company striving for profitable growth
As one of the leading plant breeding companies worldwide we strive for further profitable growth
Slide 7: KWS at a glance
KWS at a glance
Slide 8: KWS ranks among the world's leading companies for plant breeding
KWS ranks among the world`s leading companies for plant breeding NET SALES* COUNTRIES EMPLOYEES (FTE)* INNOVATION* YIELD INCREASE TARGET in million € R&D in % of net sales crops Ø p.a. in % 1,678 >70 4.673 19.4 1-2 *Financial year 2023/2024 Ranking Global Commercial Seed Market (in USD) by sales wit
Slide 9: Portfolio includes seeds for 11 of the 13 most important crops
Our portfolio includes seeds for 11 of the 13 most important crops/crop groups 1163 1173 808 776 375 349 203 219 165 155 150 134 87 18 58 47 26 40 41 58 29 54 4 40 4 13 Vege- Sugar- Rape- Sorg- Sun- Sugar- Corn Wheat Rice Potato1 Soybeans tables Barley Rye cane 2 seed hum flowers beet 2 X X Global a
Slide 10: Corn Segment
Corn Segment NET SALES EBITDA EBIT in € million in € million in € million 702 (738) 78(52) 39(19) Corn Soybeans Sunflower Overview FY 2023/24 Sales by region (in € million) ▪ Sales decline mainly driven by GERMANY OTHER unfavorable FX in Europe and lower REGIONS 17% volumes in North America in 4% ch
Slide 11: Sugarbeet Segment
Sugarbeet Segment NET SALES EBITDA EBIT in € million in € million in € million 865 (716) 374 (276) 350 (253) Sugarbeet Feedbeet Overview FY 2023/24 ▪ Strong sales growth due to GERMANY success of innovative product OTHER REGIONS 10% portfolio (CONVISO® SMART, CR+), representing 56 (46) % of 12% tota
Slide 12: Strong track record of sugarbeet sales and EBIT growth
Strong track record of sugarbeet sales and EBIT growth in K ha in Mio. € 6000 1000 5,503 Acreage: -16 % 865 900 5000 800 4,601 700 4000 Sales: +447 % 600 3000 500 350 400 2000 EBIT: +588 % 300 194 200 1000 60 100 0 0 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17
Slide 13: New Cercospora-resistant variety generation (CR+)
Classic variety CR+ variety The new and powerful Cercospora variety generation (CR+) offers a novel disease suppression and yield performance
Slide 14: Cereals Segment
Cereals Segment NET SALES EBITDA EBIT in € million in € million in € million 276 (247) 58 (47) 50 (39) … Rye Rapeseed Wheat Barley Sorghum Overview FY 2023/24 NORTH & SOUTH ▪ Strong sales growth driven by AMERICA rapeseed (+16%), hybrid rye 3% (+13%) and wheat (+8%) ▪ EBIT increased by 28% to € 50 (
Slide 15: Hybrid rye has the lowest CO2 footprint of all cereals
Hybrid rye has the lowest CO2 footprint of all cereals. It requires far less water, agrochemicals and fertilizers. #RYEVOLUTION
Slide 16: Vegetables Segment
Vegetables Segment NET SALES EBITDA EBIT in € million in € million in € million 62 (66) -11 (2) -35 (-12) Swiss … Spinach Beans Tomato Chard Overview FY 2023/24 GERMANY ▪ Sales decline due to lower spinach OTHER 2% sales in China; stable development REGIONS in main market U.S. 18% ▪ EBIT decline due
Slide 17: Building a competitive position in vegetables seed market
Building a competitive position in vegetables seed market Netherlands Andijk/Wageningen Turkey Mexico Antalya Culiacan Spain Murcia/Almería Italy Parma/Corridonia Brazil Petrolina/Uberlândia
Slide 18: FY 2023/2024 & Outlook 2024/2025
FY 2023/2024 & Outlook 2024/2025
Slide 19: Financial Year 2023/2024: Strong operating performance
Financial Year 2023/2024: Strong operating performance and significant strategic achievements ▪ Achieved double-digit growth in sales and earnings1 ▪ Increased dividend to 1.00 (0.90) € ▪ Expanded leading global position in sugarbeet seeds ▪ Received record number in new variety approvals ▪ Divested
Slide 20: Overview FY 2023/2024 results
Overview FY 2023/2024 results1 in € million 12M 2023/2024 12M 2022/2023 +/- Sales 1,678.1 1,500.3 11.9% EBITDA 388.1 278.8 39.2% EBIT 302.0 195.1 54.8% Financial result -50.0 -23.8 >100.0% Earnings before taxes 184.1 126.1 47.1% Taxes 69.7 45.2 50.2% Net income 184.1 126.1 46.0% Earnings per share 5
Slide 21: Dividend proposal: increase to €1.00 per share
Dividend proposal: increase to €1.00 per share Dividend payments and dividend ratio for the last 10 years Dividend payments Dividend rate (Dividend payment / Net Income) €1.00 €0.80 €0.90 €0.70 €0.80 €0.64 €0.64 €0.67 €0.60 €0.64 23.6% 23.2% 21.6% 21.2% 21.3% 24.3% 23.9% 24.5% 23.4% 25.2% 25 % 20 %
Slide 22: Refocusing KWS corn activities: divestiture in China & South America
Refocusing KWS corn activities: Successful divestiture of corn businesses in China & South America ▪ Sale of Chinese corn business completed in Q3 2023/2024 (one-time gain: € 28m) ▪ Exit of corn business in South America - transaction completed in Q1 2024/2025 (one-time gain: ~€100m) ▪ Divestiture h
Slide 23: Improved maturity profile after significant debt repayment
Improved maturity profile after significant debt repayment Maturities in € million 2024/2025 20 143 2025/2026 20 ▪ In September 2024, KWS 2026/2027 127 has repaid €143m of debt related to the 2019 2027/2028 20 promissory loan 2028/2029 20 ▪ Significant reduction of overall financial debt 2029/2030 8
Slide 24: Capital expenditures
Capital expenditures CORPORATE CORPORATE Key investments per segment 18 25.4 % (18%) (17.8) CORN 18% 16% 22.0 (18.8) ▪ Corn: Extension of production VEGETABLES VEGETABLES facilities e.g. in Romania and 14% 16.5 (12%) (14.2) 12% Ukraine SUGARBEET ▪ Sugarbeet: Extension of warehouse/storage capacities
Slide 25: Further growth expected in a challenging environment
Further growth expected in a challenging environment Opportunities ▪ Broad KWS product portfolio enables market fluctuations to be balanced out Forecast for FY 2024/2025 ▪ Well-filled pipeline with innovative ▪ Sales increase of 2 to 4%1 solutions for sustainable agriculture ▪ EBIT margin at 14 to 1
Slide 26: Turning sustainability into growth
TURNING SUSTAINABILITY INTO GROWTH
Slide 27: EU Farm-to-Fork strategy sets challenging targets
50% 25% reduction in the or more of overall use and risk agricultural land of plant protection under organic chemicals farming EU Farm-to-Fork strategy sets challenging targets by 2030 20% 10% reduction in the of agricultural use of inorganic area under high- fertilizers diversity landscape features
Slide 28: Sustainability Ambition anchors tangible goals until 2030
Until 2030, our Sustainability Ambition has been the anchor for tangible goals to strive for Contribution of plant breeding: Product Impact Safeguard food production Minimize input required ▪ 1.5 % annual yield gain for farmers through ▪ Invest >30 % p.a. of R&D budget into reduction progress in pla
Slide 29: Ambition 2030: Product Impact
Ambition 2030 Product-Impact Safeguard food production Enhance crop diversity Minimize Input required Support sustainable diets Our target is to enable an average of 1.5% Our target is to enrich crop rotation options by Our target is to enable reduction of chemical Our target is to ensure that >40%
Slide 30: Ambition 2030: Corporate Responsibility
Ambition 2030 Corporate Responsibility Operational footprint Social engagement We plan to improve our operational footprint by Using 1% EBIT p.a. for social projects globally Measuring and continuously improving our Declining the ratio of occupational reducing Scope 1 and 2 emissions by -50% employe
Slide 31: KWS Group emissions in accordance with the Greenhouse Gas Protocol
KWS Group emissions in accordance with the Greenhouse Gas Protocol Scope 1+2 EMISSIONS SCOPE 1 SCOPE 2 EMISSION INTENSITY in t CO2e in t CO2e in t CO2e in kg CO2e / €1.000 net sales 48.379 (-5.0%) 31.210 (-4.1%) 17.169 (-6.7%) 28,8 (-15.3%) Emission development Breakdown of emissions by source Scope
Slide 32: myKWS: Connected Seeds digital platform
Connected Seeds - Expanding our growing digital plattform „myKWS“ Continuous expansion of the service area Expansion of services and functions Goal 2030 6.0m ha > + 2023/2024 2.9m ha Today (among other things) ▪ Crop rotation planning ▪ Sowing optimization ▪ Inventory management tools ▪ Satellite-ba
Slide 33: Future value creation through innovative seeds
Future value creation through innovative seeds Integrated Seed Solutions Digital Services 2031 Less Inputs Income opportunity GHG reduction Crop Expert Higher yield 2022 New Crops with high value creation Leveraging crop synergies Access to state of the art, tailored expertise 33 KWS SAAT SE & Co. K
Slide 34: Innovation is key to success
INNOVATION IS KEY TO SUCCESS
Slide 35: We develop plants that support sustainable agriculture
We develop plants that support a sustainable agriculture. Technologies will make this faster and more targeted.
Slide 36: Technology is the backbone of our success
Technology is the backbone of our success Bio- Informatics Breeding Genomics (big data, AI) (Germplasm) & Marker Digital Traits Phenotyping New Cell & Breeding Tissue Technologies Culture (CRISPR) 36 KWS SAAT SE & Co. KGaA September 2024
Slide 37: Record number of new variety approvals strengthen our product pipeline
Development of the number of variety approvals over the past 20 fiscal years Record number of 600 new variety approvals 500 400 559 (488) 300 200 strengthen our product 100 pipeline 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/2
Slide 38: Further information
FURTHER INFORMATION
Slide 39: Key figures for the KWS share, shareholdings and coverage
Key figures for the KWS share, shareholdings and coverage 1 General Data ▪ ISIN ▪ Number of shares DE0007074007 33.000.000 FAMILIES BÜCHTING, AREND 69.3% OETKER, TESSNER ▪ Type No-par value shares (t/o TESSNER BETEILIGUNGS (15.4%) GMBH) 2 Closing price (Xetra)* in € ▪ June 28, 2024 59.60 ▪ June 30,
Slide 40: Financial calendar and IR contact
Financial calendar and IR contact September 26, 2024 Annual Report 2023/2024 November 12, 2024 Q1 Report 2024/2025 December 5, 2024 Annual Shareholders’ Meeting Peter Vogt Head of Investor Relations Phone: +49 (0) 30 816914-490 E-Mail: peter.vogt@kws.com KWS SAAT SE & Co. KGaA Bülowstraße 78 10783 B
Slide 41: Disclaimer
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.
Slide 42: Thank you for your attention. Any questions?
Thank you for your attention. Any questions?
KWS SAAT SE & Co. KGaA — Investor Presentation (September 2024) on 6ix