Slide 1: KWS' Annual Press and Analysts' Conference 2017/2018
KWS’ Annual Press and Analysts’ Conference 2017/2018 Dr. Hagen Duenbostel and Eva Kienle October 24, 2018
Slide 2: Sustainability and new technologies are shaping change in agriculture
Sustainability and new technologies are shaping change in agriculture. KWS delivers the solutions for that. ▪ Farmers prefer to decide for themselves what seed they choose, since it is vital to their own economic success. ▪ Sustainability is growing in importance. Seed is the best way to achieve hig
Slide 3: KWS' competitive environment
KWS’ competitive environment Globally Europe Sales from agricultural crops in € billion Sales from agricultural crops in € billion Bayer 9.1 Corteva 1.1 Corteva 7.3 0.7 Syngenta 2.0 Bayer 0.6 1.4 Syngenta 0.5 Vilmorin 0.9 Vilmorin 0.5 BASF 0.9 DLF 0.1 Source: AgbioInvestor October 2018, excluding ve
Slide 4: Farmers want freedom of choice; broad portfolio of specialized crops
Farmers want freedom of choice. KWS offers a broad portfolio of highly specialized agricultural crops. 100% 90% Bayer Corteva 80% 70% Syngenta 60% Limagrain KWS 50% 0% 20% 40% 60% 80% 100% 40% SEED FOCUS CORN / SOY FOCUS 30% 20% BASF 10% 0% Data source: AgriService 2016, Phillips McDougall, Septembe
Slide 5: KWS' net sales growth relative to the global commercial seed market
KWS’ net sales growth relative to the global commercial seed market €40 bn €5 bn 35.0 €35 bn 33.6 33.4 30.6 €4 bn 29.2 29.7 €30 bn +8.2% 24.8 €25 bn 23.3 €3 bn 20.0 €20 bn 17.8 15.9 €2 bn €15 bn 1.4 1.4 1.2 1.3 +10.0% €10 bn 1.1 1.0 0.9 €1 bn 0.7 0.8 0.5 0.6 €5 bn €0 bn €0 bn 2007 2008 2009 2010 201
Slide 6: Expertise for most of the entire crop rotation
Expertise for most of the entire crop rotation with 10 of the 12 most important crops 1.060 749 741 377 335 188 220 160 122 141 139 69 45 64 26 47 19 49 27 34 5 40 4 13 Pota- Sugar Rape- Sun- Sugar- Corn Wheat Rice Soybean Barley Sorghum Rye toes1 cane seed flower beet X X Global cultivation area (m
Slide 7: KWS' focus in fiscal 2018/2019: Laying a foundation for new growth
KWS’ focus in fiscal 2018/2019: Laying a foundation for new growth Growth of the product areas Expansion of the Executive Board Flexibility New legal form Structures and processes ONEGLOBE 7 KWS SAAT SE October 24, 2018
Slide 8: Executive Board of KWS SAAT SE: Ideal line-up to enable future growth
Executive Board of KWS SAAT SE: Ideal line-up to enable future growth Hagen Duenbostel Léon Broers Peter Hofmann Eva Kienle Felix Büchting CEO CFO As of January 1, 2019 Corn Americas & Asia, Research and Breeding Sugarbeet, Corn Europe, Finance, Controlling, Cereals, HR Strategy, Governance & Market
Slide 9: New legal form
New legal form Greater flexibility, with preservation of our identity and values ▪ Preparation of the change in legal form to a partnership limited by shares (SE & Co. KGaA). Decision on December 14, 2018 ▪ Accompanying stock split at a ratio of 1:5 Independence in times of change in the industry Be
Slide 10: ONEGLOBE: New structures create leeway for additional growth
ONEGLOBE New structures at KWS create leeway for additional growth Success factors to date Setup for the future Status of ONEGLOBE Integrated structures New ONEGLOBE Independence Net sales structures are being tripled Lean processes implemented Closeness Global Transaction and trust Global support N
Slide 11: Systematic investment in relevant areas of opportunity
Systematic investment in relevant areas of opportunity Expansion of corn production capacity in Brazil Sugarbeet: Rollout of CONVISO ® SMART ▪ Brazil, with cultivation area of around 15 million ▪ The CONVISO® SMART system – a new dimension hectares, is the world’s third-largest corn market in contro
Slide 12: Our four strategic pillars as the foundation for the future
Our four strategic pillars as the foundation for the future ▪ Independence is enshrined as a corporate objective Independence ▪ It is part of the joint value system with our customers ▪ The need for innovative technology in plant breeding Innovation continues to increase ▪ Digital services support f
Slide 13: Business performance KWS Group
Business performance KWS Group 2017/2018
Slide 14: IFRS income statement
IFRS income statement In € million 2017/2018 2016/2017 +/- Net sales 1,068.0 1,075.2 –0.7% Operating income (EBIT) 132.6 131.6 0.8% Net financial income/expenses 5.4 16.6 –67.5% Result of ordinary activities 138.0 148.2 –6.9% Taxes 38.3 50.5 -24.2% Net income for the year 99.7 97.7 2.0% Earnings per
Slide 15: Net sales of the KWS Group
Net sales of the KWS Group Net sales Net sales by region in € million in € million 2016/2017 2017/2018 1,075 1,068 Sugarbeet, 1,037 corn, 986 924 cereals Corn, Sugarbeet, currency +8.8% cereals Sugarbeet 464 505 –15.1% +4.0% 317 –13.4% 226 235 270 67 58 13/14 14/15 15/16 16/17 17/18 Germany Europe (
Slide 16: EBIT of the KWS Group
EBIT of the KWS Group EBIT EBIT by product areas (equity-accounted) in € million in € million Royalty payments, increase in volumes in the EU 2016/2017 2017/2018 +6.4% Rapeseed Reorganization, 151 161 Rye consulting, 118 132 133 113 113 IT infrastructure + 0% +78.6% 31 31 –27.6% 10 18 Corporate 13/1
Slide 17: ONEGLOBE: Realignment of the global organization
ONEGLOBE Realignment of the global organization Compliance, Group Executive Board governance, strategy risk mgmt. Corn Segment Corn Segment Sugarbeet Cereals (BU Americas) (BU Europe/Asia) Segment Segment Global R&D Global business functions* Global Transaction Center + + *Controlling, Finance & Pro
Slide 18: ONEGLOBE: New location in Berlin
ONEGLOBE New location in Berlin ▪ Transaction Center ▪ Human Resources ▪ Finance & Procurement ▪ Business Partner Legal, Controlling and IT
Slide 19: Net financial income/expenses
Net financial income/expenses In € million 2017/2018 2016/2017 +/- Interest and similar income 4.0 3.1 30.5% Interest and similar expenses 12.0 11.4 5.4% Income from equity-accounted financial assets 13.4 24.9 –46.2% Other net income from equity investments 0 0 0% Net financial income/expenses 5.4 1
Slide 20: Taxes
Taxes In € million 2017/2018 2016/2017 +/- Actual income taxes 34.2 54.1 –37% In Germany 1.2 17.8 –93% Abroad 33.1 36.3 –9% Thereof from previous years –4.3 6.7 –163% Deferred taxes 4.1 –3.6 –214% In Germany 5.7 –2.0 –379% Abroad –1.6 –1.6 0% Income taxes 38.3 50.5 –24.1% Lower tax burden as a resul
Slide 21: Balance sheet
Balance sheet Balance sheet structure – Assets Balance sheet structure – Equity and liabilities in € million in € million Current assets Noncurrent assets Current liabilities Noncurrent liabilities Equity 275 299 302 769 815 826 334 394 359 768 837 882 668 680 691 2015/2016 2016/2017 2017/2018 2015/
Slide 22: Working capital
Working capital in € million 2017/2018 2016/2017 +/- Inventories 181.0 194.9 Trade receivables 310.1 302.6 Other assets 71.6 52.6 Cash and cash equivalents 192.6 191.4 Trade payables 75.7 75.4 Short-term provisions 42.3 72.8 Other liabilities 122.3 112.1 Working capital 515.0 481.2 NET WORKING CAPIT
Slide 23: Cash flows and capital expenditure
Cash flows and capital expenditure CASH FLOW FROM CASH FLOW FROM FREE CASH FLOW CASH FLOW FROM OPERATING ACTIVITIES INVESTING ACTIVITIES in € million FINANCING ACTIVITIES in € million in € million in € million 30 (–48.3%) 98 (–19.9%) –68 (+5.1%) –25 (–14.6%) NORTH & SOUTH REST OF AMERICA WORLD CORPO
Slide 24: Two of our current capital spending projects at KWS
Two of our current capital spending projects at KWS Sugarbeet seed production, Germany, Einbeck ▪ Expansion of the production and storage capacities for sugarbeet seed ▪ Greater flexibility and lower setup times so as to meet individual customer needs ▪ Quicker and more sustainable production ▪ 3 ne
Slide 25: Business performance Segments
Business performance Segments 2017/2018 25 KWS SAAT SE October 24, 2018
Slide 26: Effect from transfer of rapeseed in 2017/2018
Effect from transfer of rapeseed in 2017/2018 Corn – NET SALES €30 million + Cereals Segment Segment – EBIT €4 million + All rapeseed activities were pooled in the Cereals Segment at the start of the fiscal year. The restructuring enables a more focused approach in breeding and product development.
Slide 27: Business performance of the segments
Business performance of the segments Corn Sugarbeet Cereals Corporate Americas Rapeseed transfer –11.0% Decline in net Europe Rapeseed, 825 sales, rye, 734 rapeseed Royalty rapeseed Rye, transfer +0.1% payments transfer rapeseed Reorganization, transfer consulting, Farms 455 455 IT infrastructure –1
Slide 28: Corn Segment in the EU
Corn Segment in the EU 28 Net sales Market share Net sales for corn in € million in % Cultivation area in 2018: 13 million ha (stable) OTHERS KWS 23% 18% SYNGENTA 6% 305 301 283 277 274 CORTEVA 24% VILMORIN 13% BAYER 13/14 14/15 15/16 16/17 17/18 16% Source for market share: Kleffmann. Not including
Slide 29: Corn Segment in North America
Corn Segment in North America Net sales Market share KWS’ share of sales at AGRELIANT in € million in % Cultivation area in the U.S. in 2018: 33 million ha (–1%) AGRELIANT 6% OTHERS 20% 312 309 249 272 265 BAYER 35% SYNGENTA 5% CORTEVA 13/14 14/15 15/16 16/17 17/18 34% Source for market share: Estim
Slide 30: Corn Segment in other regions
Corn Segment in other regions Net sales Net sales by region in € million in % ASIA / AFRICA 20% CENTRAL & SOUTH AMERICA 57% 211 190 161 178 141 NON-EU EUROPEAN COUNTRIES 13/14 14/15 15/16 16/17 17/18 23% Source for market share: Estimate by KWS 30 KWS SAAT SE October 24, 2018
Slide 31: Sugarbeet Segment worldwide
Sugarbeet Segment worldwide Net sales Market share in € million in % Cultivation area in 2018: 4.9 million ha (–) OTHERS KWS DESPREZ 11% 31% 6% 455 455 412 CRYSTAL 364 8% 319 BETASEED 19% STRUBE SESVANDERHAVE 13/14 14/15 15/16 16/17 17/18 9% 16% Source for market share: Estimate by KWS Others: DLF 5
Slide 32: Sugarbeet Segment in the EU
Sugarbeet Segment in the EU 28 Net sales Market share in € million in % OTHERS DESPREZ 9% 5% BETASEED KWS 11% 44% 204 182 137 136 150 STRUBE SESVANDERHAVE 13/14 14/15 15/16 16/17 17/18 12% 19% Source for market share: Estimate by KWS Others: Maribo 5%, DLF 2%, Lion Seed 1%, others 2% 32 KWS SAAT SE
Slide 33: Cereals Segment
Cereals Segment Net sales Net sales by crop in € million in % Effect from transfer of rapeseed: +€30 million from the Corn RYE Segment 35% OTHERS 7% RAPESEED 151 27% 107 111 116 109 BARLEY 14% WHEAT 13/14 14/15 15/16 16/17 17/18 17% 33 KWS SAAT SE October 24, 2018
Slide 34: Guidance for 2018/2019
Guidance for 2018/2019
Slide 35: Guidance for the KWS Group for fiscal 2018/2019
Guidance for the KWS Group for fiscal 2018/2019 Guidance in accord. with IFRS 11 Fiscal 2018/2019 Fiscal 2017/2018 Net sales growth Slight increase in net sales €1,065 million EBIT margin 10.0 – 12.0% 12.2% R&D intensity Around 19% 18.5% 35 KWS SAAT SE October 24, 2018
Slide 36: Forecast for the 2018/2019 fiscal year: Segments
Forecast for the 2018/2019 fiscal year Segments Guidance for fiscal 2018/2019 Fiscal 2017/2018 Sugarbeet Net sales Slightly down from previous year €455.1 million EBIT margin Lower than the previous year 35.3% Corn Net sales Sharp increase €734.2 million EBIT margin Well up over previous year 6.5% C
Slide 37: Thank you for your interest
Thank you for your interest
Slide 38: KWS' track record according to internal corporate controlling
KWS’ track record according to internal corporate controlling1 Net sales1 EBIT1 in € million in € million 1,357 1,394 1,345 1,260 1,178 159 149 138 138 141 13/14 14/15 15/16 16/17 17/18 13/14 14/15 15/16 16/17 17/18 1 Including net sales and earnings contributed by our joint ventures and associated
Slide 39: Key figures for the KWS share at June 30, 2018
Key figures for the KWS share at June 30, 2018 incl. stakes and current coverage 1 General data ▪ ISIN ▪ Number of shares DE0007074007 6,600,000 FAMILIES BÜCHTING AND 54.5% AREND OETKER ▪ Share class Individual share certificates 2 Closing price ▪ June 30, 2018 in € 304.00 TESSNER BETEILIGUNGS 15.4%
Slide 40: Financial calendar & your contact persons
Financial calendar & your contact persons November 27, 2018 1st Quarterly Report for 2018/2019 December 14, 2018 Annual Shareholders’ Meeting in Einbeck Wolf-Gebhard von der Wense Tatjana Kasper Head of Investor Relations Investor Relations Manager +49 (0) 5561 311-968 +49 (0) 5561 311-14 84 investo
Slide 41: Safe Harbor Statement
Safe Harbor Statement These information materials are not a sales offer for subscription rights or securities in the United States of America. Subscription rights or securities are not allowed to be offered in the United States of America without their being registered or exempted from the obligatio