KWS Saat Se & Co KGaA · XETR:KWS
KWS Saat Se & Co KGaA — Investor Presentation (November 2020)
32 slides from KWS Saat Se & Co KGaA's investor presentation, November 2020
Slide 1: Investor presentation
Investor presentation KWS SAAT SE & Co. KGaA | November 2020
Slide 2: Our long-term goals
Our long-term goals Profitable growth Innovation Independence Sustainability Long-term strategy Significant investment Since generations Long-term economic based on organic growth combined with + in research and breeding + supported by family shareholders + success and sustainable acquisitions devel
Slide 3: KWS’ competitive environment
KWS’ competitive environment Globally Europe Sales from agricultural crops in € billion Sales from agricultural crops in € billion Bayer 7.8 Corteva 1.2 Corteva 6.7 0.7 Syngenta 2.0 Vilmorin 0.6 1.3 Syngenta 0.5 Vilmorin 0.9 Bayer 0.3 BASF 0.9 BASF 0.1 Source: AgbioInvestor 2019 and KWS estimates, e
Slide 4: Strategic market position
Strategic market position 100% 100% Corteva Bayer 80% 80% 60% 60% Syngenta KWS 0% 20% 40% 60% 80% 100% 40% 40% SEED FOCUS CORN / SOY FOCUS Limagrain 20% 20% BASF CITIC 0% 0% Data Source: Phillips McDougall, December 2018 and AgbioInvestor, October 2018 (% corn & soy sales of total seed sales; % seed
Slide 5: Our 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 1148 782 734 349 268 194 167 214 190 157 125 141 18 26 24 48 38 75 42 59 27 52 5 27 4 11 Sugar- Vege- Rape- Sorg- Sun- Sugar- Corn Rice Wheat Soybeans Potato1 Barley Rye cane tables seed hum flowers beet X X Global acreag
Slide 6: Vegetable Seeds – A growing and highly profitable market
Vegetable Seeds – A growing and highly profitable market Global Commercial Seed Market Vegetable VegetablesSeed Market Market (million(in million US$) US$) Sugarbeet Sunflower 2165 1 bn. 1 bn. 1656 Rapeseed 2 bn. 9217 Cotton 5396 Corn 2 bn. Rice 15 bn. 2 bn. 2016 2017-2021 2022-2026 2026 Source: Kyn
Slide 7: Update Q1 2020/2021
Update Q1 2020/2021 As is customary in the first quarter, the key earnings figures were negative in € million Q1 2020/2021 Q1 2019/2020 +/- Net sales 184.1 191.0 -3.6% EBITDA -27.3 -21.8 -25.2% EBIT -50.5 -42.3 -19.4% Net financial income/expenses -15.2 -22.2 31.5% Result of ordinary activities -65.
Slide 8: Product Segments
Product Segments Corn Sugarbeet Cereals Vegetables 112 109 44 47 37 36 27 11 16 13 3 -3 -29 -32 -38 -41 Net sales EBIT Net sales EBIT Net sales EBIT Net sales EBIT Q1 2019/2020 Q1 2020/2021 “Our operational business performance was stable by and large in the first quarter,” said Eva Kienle, Chief Fi
Slide 9: Financials FY 2019/2020
Financials FY 2019/2020
Slide 10: FY 2019/2020 – Financial Highlights
FY 2019/2020 – Financial Highlights € 1,283m € 226m Net sales EBITDA 15% (10% organic growth) 13% € 137m € 2.89 EBIT* EPS* 8% 8% * incl. effects of purchase price allocation for acquisition of Pop Vriend Seeds 10 KWS SAAT SE & Co. KGaA November 2020
Slide 11: Segment development - Corn
Segment development - Corn FY 2019/2020 +5.0% 776 Corn ▪ Sales growth driven by European markets and South 739 America ▪ Strong volume increase in Brazil due to higher acreage and market share gains offset by weakening BRL ▪ U.S. Joint Venture sales (AgReliant) on previous year’s level +15.9% ▪ Segm
Slide 12: Segment development - Sugarbeet
Segment development - Sugarbeet FY 2019/2020 Sugarbeet ▪ Segment sales increased by 6.6% despite decline of +6.6% 492 global acreage 461 ▪ Successful market introduction of CONVISO® SMART technology – now available in 24 countries ▪ Segment EBIT decreased to € 170m (180m) due to -5.3% one-time effec
Slide 13: Segment development - Cereals
Segment development - Cereals FY 2019/2020 +11,9% Cereals ▪ Cereals sales show strong increase of 11.9% to 191 171 € 191m (171m) ▪ Sales performance mainly driven by growth of 27% in hybrid rye ▪ Wheat & barley sales stable, oilseed rape below previous year +14,8% ▪ Segment EBIT up by 14.8% to € 26m
Slide 14: Segment development - Vegetables
Segment development - Vegetables 84 Vegetables FY 2019/2020 ▪ Newly formed Vegetables segment contributed net sales of € 84m – mainly driven by spinach and bean seeds in the United States and Europe ▪ High profitability (excl. ppa-effects) maintained with EBIT at € 26m 26 ▪ ppa-effects include non-c
Slide 15: Segment development – Corporate
Segment development – Corporate* Corporate* FY 2019/2020 ▪ Costs consolidated in the segment increased mainly due to reorganization (ONEGLOBE), higher 4 5 centralized R&D expenses and impact of FX hedging instruments Net sales Outlook 2020/2021 ▪ Improvement of EBIT -97 in € million -105 *Segment in
Slide 16: Significant increase in Net sales and EBITDA
Significant increase in Net sales and EBITDA In € million 2019/2020 2018/2019 +/- Net sales 1,282.6 1,113.3 15.2 % EBITDA 225.5 199.7 12.9 % EBIT 137.4 150.0 -8.4 % Financial result -7.8 -5.5 - Result of ordinary activities 129.5 144.5 -10.4 % Taxes 34.3 40.4 -15.1 % Net income 95.2 104.0 -8.4 % Ear
Slide 17: Balance sheet as of June 30, 2020
Balance sheet as of June 30, 2020 Balance sheet structure – Assets Balance sheet structure – Equity and liabilities in € million in € million Current assets Non-current assets Current liabilities Non-current liabilities Equity 446 961 785 1.347 796 364 1.274 964 995 761 2018/2019 2019/2020 2018/2019
Slide 18: Maturity profile of main debt instruments
Maturity profile of main debt instruments in € million (as of October 2020) Promissory note loans 143 144 (in total €456.5m) 82 44,5 18 25 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 SynLoan € 200m RCF (committed): currently not used * Credit line € 231.5m (uncommitted): currently not used Fur
Slide 19: Capital expenditures
Capital expenditures GEMÜSE NORTH & SOUTH REST OF AMERICA WORLD CORPORATE 1.5% CORN 11.6% 1.3% 35.7% 23.6% Capital expenditure 108 € million GERMANY CEREALS EUROPE 62.4% SUGARBEET (EXCL.GER.) 9.3% 24.7% 29.9% Investment focus: Germany Previous year: € 96.6 million 19 KWS SAAT SE & Co. KGaA November
Slide 20: Two major investment projects of KWS
Two major investment projects of KWS Extension of seed production for sugarbeet Three new buildings in 30% more production Einbeck capacity CapEx volume In operation since around € 50 million October 2020 New lab building Three-storey building in 2,350 sqm of new Einbeck laboratory and office space
Slide 21: Forecast for the KWS Group for fiscal 2020/2021
Forecast for the KWS Group for fiscal 2020/2021 Forecast 2020/2021 Actual 2019/2020 Net sales On previous year´s level €1,283 million EBIT margin* 11 – 13% 13.3% *w/o PPA effects from acquisition of Pop Vriend Seeds 21 KWS SAAT SE & Co. KGaA November 2020
Slide 22: Seeding the future
Seeding the future Challenges and solutions for modern agriculture
Slide 23: 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 24: We develop high yielding and resource-efficient varieties
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 25: Examples for KWS´ contribution for more 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 varietie
Slide 26: 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 27: 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 a
Slide 28: Current innovation projects: Precision Farming & TerraSentia
Current innovation projects: Precision Farming & TerraSentia Use of autonomous robots & flying drones to continuously collect data in the fields and to evaluate them using artificial intelligence. Comprehensive data collection Cost effciency More accurate & faster Automated breeding results analyses
Slide 29: Dividend proposal: Increase to 0.70 Euro per share
Dividend proposal: Increase to 0.70 Euro per share Dividend payments and dividend rate of the last 10 years Dividend payments in € per share Dividend rate (Dividende payment / Net income) 0.70 € 0.67 0.64 0.64 0.60 0.60 0.60 0.60 0.56 0.46 24.7% 23.6% 24.3% 25 % 23.2% 20.8% 21.7% 21.6% 21.2% 21.3% 1
Slide 30: 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 BÜCHTUNG, 54.4% AREND OETKER ▪ Type No-par value shares TESSNER BETEILIGUNGS 15.4% 2 Closing price (Xetra)* in € GMBH ▪ June 30, 2020 66.70 ▪ June 30, 2019 64.20 FREE F
Slide 31: Financial calendar and IR contact
Financial calendar and IR contact December 16, 2020 Annual Shareholders‘ Meeting (virtual) February 18, 2021 Semiannual Report 2020/2021 May 12, 2021 9M Report 2020/2021 Peter Vogt Martin Heistermann Head of Investor Relations Senior Manager Investor Relations Phone: +49 (0) 30 816914-490 Phone: +49
Slide 32: 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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