KWS Saat Se & Co KGaA · XETR:KWS
KWS Saat Se & Co KGaA — 9M 2018/2019 Earnings Presentation
36 slides from KWS Saat Se & Co KGaA's earnings presentation, May 16, 2019
Slide 1: Investor Presentation
Investor Presentation KWS SAAT SE | May 2019
Slide 2: We are a seed specialist for sugarbeets, corn, cereals
We are a seed specialist for sugarbeets, corn, cereals and other agricultural crops. At KWS we think in generations, set ourselves long-term goals and thus strive for sustainable success.
Slide 3: Our long-term goals
Our long-term goals Profitable growth Innovation Independence Sustainability Long-term strategy 17% of sales per year Since generations Development of based on organic growth combined with + for research and breeding + supported by family shareholders + resource-saving varieties acquisitions Seed sp
Slide 4: Upcoming events and latest news
Upcoming events and latest news + Oct 23, 2019 FY 2018/2019 Financial Results + May 16, 2019 KWS well on track after the first nine month 2018/2019 – Annual forecast concretized + March 22, 2019 KWS implements 1:5 share split + Feb 26, 2019 KWS confirms guidance after a strong first six mont
Slide 5: Organizational chart of the new KWS SAAT SE & Co. KGaA
Organizational chart of the new KWS SAAT SE & Co. KGaA Families C.-E. Büchting Associated companies Husabe of the families C.-E. Büchting & Arend Oetker & Arend Oetker Verwaltungs GmbH 54.5% 80% (2 x 40%) 20% KWS SE Limited partners (General partner) (previously: shareholders of KWS SAAT SE) General
Slide 6: Update Q1-Q3 2018/2019
Update Q1-Q3 2018/2019 6 KWS SAAT SE May 2019
Slide 7: Income statement
Income statement July 1, 2018 – March 31, 2019 vs. previous period in € million 9M 2018/2019 9M 2017/2018 Change Net sales 857.7 862.5 -0.6% Operating income (EBIT) 173.1 169.0 2.4% Net financial income/expenses 9.8 11.7 -16.2% Result of ordinary activities 182.9 180.7 1.2% Income taxes 54.8 56.5 -3
Slide 8: Sales development July 1, 2018 – March 31, 2019
Sales development July 1, 2018 – March 31, 2019 vs. previous period Net sales development 9M Net sales development 9M by region in € million in % 9M 2017/2018 415 414 397 397 9M 2018/2019 905 863 858 221 833 206 778 43 53 Germany Europe (excl. GER) North and South America Rest of world Due to the st
Slide 9: EBIT development July 1, 2018 – March 31, 2019
EBIT development July 1, 2018 – March 31, 2019 vs. previous period EBIT development 9M EBIT development in € million in € million* 12,1 11,1 12,0 8,2 170 169 173 140 129 169 173 EBIT 9M 17/18 Corn Sugarbeet Cereal Corporate EBIT 9M 18/19 EBIT shows positive development in 9M 2018/2019 * rounding dif
Slide 10: Segment performance
Segment performance July 1, 2018 – March 31, 2019 vs. previous year Corn Sugarbeet Cereals Corporate Net sales EBIT Net sales EBIT Net sales EBIT Net sales EBIT 576 576 370 335 155 144 138 156 62 74 31 43 3 3 -59 -67 9M 2017/2018 9M 2018/2019 Reconciliation (in € million) Segments Reconciliation KWS
Slide 11: Capital expenditures
Capital expenditures July 1, 2018 – March 31, 2019 By region By segments NORTH AND REST CORPORATE CORN SOUTH AMERICA OF WORLD 31% 29% 28% 1% 67.1 € million EUROPE (EXCL. GER) GERMANY CEREALS SUGARBEET 17% 54% 8% 32% 11 KWS SAAT SE May 2019
Slide 12: Forecast for the KWS Group, Fiscal year 2018/2019
Forecast for the KWS Group| Fiscal year 2018/2019 Last Update May 16, 2019 Forecast as at 9M 2018/2019 Fiscal year (May 16, 2019) 2017/2018 Net sales Slight increase 1,068 € million EBIT margin Upper range of 10.0 – 12.0% 12.4% R&D intensity Around 19.0% 18.5% Notes The forecast is based on the curr
Slide 13: Seeding the future
Seeding the future Challenges and solutions for modern agriculture
Slide 14: Meeting the challenges of high-yield agricultural harvests
For efficient agriculture it is crucial to meet the challenges of high-yield agricultural harvests Population growth: Food demand is expected to rise by 60% through 2050 Reduction of per capita cultivation area: The population is growing faster than the acreage Climate change: Change in abiotic stre
Slide 15: High yielding and resource-efficient varieties for sustainable agriculture
We develop high yielding and resource-efficient varieties for a sustainable agriculture + + + + Safe yields Resource efficiency Increased nutrient Diversification Securing yield stability and Reducing consumption of content Securing sustainability developing higher yields for a water, fertilizer, ch
Slide 16: Our portfolio includes seeds for 10 of the 12 most important crops
Our portfolio includes seeds for 10 of the 12 most important crops 1060 749 741 377 335 188 220 160 122 141 139 69 45 64 26 47 19 49 27 34 5 40 4 13 Sugar- Rape- Sorg- Sun- Sugar- Corn Wheat Rice Potato1 Soybeans Barley Rye cane seed hum flowers beet X X Global acreage (in ha million) Global product
Slide 17: 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 18: KWS fiscal year 2017/2018
KWS fiscal year 2017/2018 July 1, 2017 to June 30, 2018 NET SALES INNOVATION EBIT EBIT MARGIN EARNINGS/SHARE EMPLOYEES COUNTRIES in € million in € million in € million in % from sales in € worldwide worldwide 1,068 198 133 12.4 15.08 5,147 70 REST OF GERMANY WORLD 22% 6% NORTH AND EUROPE SOUTH AMERI
Slide 19: Innovations for agricultural
Innovations for agricultural 19 KWS SAAT SE May 2019
Slide 20: The history of plant breeding started 12,000 years ago
The history of plant breeding started 12,000 years ago. Today we use all available breeding methods Source: BDP, changed 20 KWS SAAT SE May 2019
Slide 21: Developing a new variety takes 8 to 12 years
Developing a new variety is a complex process and takes 8 to 12 years Corporate research and first Variety development and crossings (up to 2 years) selection, multi-year and multi- site tests (up to 8 years) „Pre-Breeding“ and material development (up to 3 years) Variety approvals through the Bunde
Slide 22: Three of our strategic projects at KWS
Three of our strategic projects at KWS CONVISO® SMART Hybrid potato seed Hybrid wheat Breeding of herbicide-tolerant Development of diploid hybrid Target: Introduction of a hybrid sugarbeet varieties in cooperation potatoes, that can be multiplied wheat system with added value for with Bayer and mar
Slide 23: Appendix
Thank you for your interest. Appendix
Slide 24: KWS organizational structure
KWS organizational structure Compliance, Group Executive Board Governance, Strategy Risk-MGMT BU Corn BU Corn BU BU Americas Europe/Asia Sugarbeet Cereals Global R&D Global Business Functions* Global Transaction Center + + *Controlling, Finance & Procurement, HR, IT, Legal & IP, Marketing & Communic
Slide 25: Research & Development are key drivers to organic growth
Research & Development are key drivers to organic growth (KWS fiscal year 2017/2018) EMPLOYEES % R&D EMPLOYEES R&D INVEST % R&D INVEST YIELD PROGRESS in innovation at KWS in innovation (in million €) of total turnover crops Ø p.a. 1.920 37,3 197,7 18,5 1-2% Einbeck (DE) Global Research Network St. L
Slide 26: Examples of KWS' contribution to sustainability in agriculture
Examples for KWS´ contribution for more sustainability in agriculture Organic seeds Biologicals Hybridrye Variety and performance testing • Biologicals can help to reduce Used as feed increases animal for the early selection of efficient chemical crop protection health as a feed organic varieties an
Slide 27: Dr. Hagen Duenbostel, CEO
We are excellently positioned; our unique profile gives us a model for the future that roots deeply in our company‘s history. Dr. Hagen Duenbostel (1970) CEO and board member since 2003 Corn Americas & Asia, Strategy, Governance & Risk Management, Compliance
Slide 28: Dr. Léon Broers, Research and Breeding
We strive steadily to find new and innovative ways to become even more efficient and swift. For this, we build on a foundation of high innovation power. Dr. Léon Broers (1960) Board member since 2007 Research and Breeding
Slide 29: Dr. Peter Hofmann, Sugarbeet, Corn Europe
We are commited to competent advice; it is our goal to create trust by mutual success and to cater to farmers as partners. Dr. Peter Hofmann (1960) Board member since 2014 Sugarbeet, Corn Europe, Marketing & Communication
Slide 30: Eva Kienle, Finance
The KWS Group is an economically sound company. We have a solid financial basis and are excellently prepared for possible investments that ensure additional growth. Eva Kienle (1967) Board member since 2013 Finance, Controlling, Global Services, IT, Legal
Slide 31: Felix Büchting, Cereals and Human Resources
As a family-owned company, we focus on a distinctive value orientation and long-term success. This includes respectful interaction with each other, a positive working environment and the individual development of our employees. Felix Büchting (1974) Board member since 2019 Cereals, Agriculture, Huma
Slide 32: Share price development of the past 10 years
Share price development of the past 10 years closing price Xetra, July 1, 2008 to June 30, 2018 Difficult economic environment in the agricultural industry +187% Max €76 7.5% average share price +106% increase per year +95% Min €14 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 KWS SDAX DAX 32 KW
Slide 33: Dividend payments and dividend ratios of the past 10 years
Dividend payments* and dividend ratios of the past 10 years 0,64 0,64 0,60 0,60 0,60 0,60 0,56 0,46 0,38 0,36 Reliable dividend policy 25% 24,7% 23,7% 24,3% 23,6% 23,2% 21,7% 21,6% 21,2% 20,8% 20% 19,6% 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 Dividend payments Dividend FY 2017/20
Slide 34: Key figures for the KWS share, shareholdings and coverage
Key figures for the KWS share, shareholdings and actual coverage 1 General Data ISIN Number of shares DE0007074007 33.000.000 FAMILIES BÜCHTUNG, 54.5% AREND OETKER Type No-par value shares TESSNER BETEILIGUNGS 15.4% 2 Closing price (Xetra)* in € GMBH December 31, 2018 52.00 30.1% July 1, 2018 60.80
Slide 35: Financial calendar and IR contact
Financial calendar and IR contact May 16, 2019 9M Report 2018/2019 Publication of the 2018/2019 annual statements; October 23, 2019 Annual Press Conference and Analysts‘ Conference in Frankfurt Peter Vogt Head of Investor Relations Phone: +49 (0) 30 209136-217 E-Mail: investor.relations@kws.com KWS
Slide 36: 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.
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