KWS SAAT AG gets off to a successful start in fiscal 2008/2009

(Einbeck, November 28, 2008/No.34/gf) – KWS SAAT AG (ISIN: DE 0007074007, one of the leading international seed companies, has gotten off to a successful start into its new fiscal year 2008/2009 (ending on June 30, 2009). The KWS Group’s sales rose to €82.8 million (61.9)*. In the first three months from July to September, the company sells primarily winter cereal and winter rapeseed varieties, which are sown in the fall. In contrast, the main contributors to KWS’ net sales – corn and sugarbeet – are not sown until spring. Accordingly, the company does not usually reach the breakeven point until the third quarter. Operating income at September 30 was € -11.2 (€ -15.3) million. Net financial income/expenses was €0.1 (5.7) million. The previous year’s income contains extraordinary profit on realization. Income after taxes in the first quarter was € -6.3 (€ -3.7) million.

Potato activities of the joint venture Van Rijn – KWS B.V. launched

The proportionately (50%) consolidated joint venture Van Rijn – KWS B.V. began operations on July 1, 2008, and is preparing for the coming seed potato season in spring 2009. The gratifying increase in sales in the cereals segment in the first three months is largely attributable to successful hybrid rye business in Germany and Northern Europe. Winter rapeseed determines how the corn segment performs in the first months of the new fiscal year: Rapeseed sales volumes remained stable. Slightly higher prices resulted in an increase in net sales at the segment. Net sales at the sugarbeet seed were down year-on-year.

Outlook: continuing our growth

KWS will continue to grow its net sales in the current fiscal year 2008/2009. “We currently expect an increase in net sales of about ten percent,” is the forecast of Philip von dem Bussche, Chairman of the Executive Board of KWS SAAT AG. Constant net sales, yet rising costs will mean that the sugarbeet segment will post lower income. KWS expects increased sales and higher costs in the corn segment, so income should be approximately on a par with that of the previous year. A good level of income is anticipated in the cereals segment, likely offsetting the weaker income expected from sugarbeet. “As far as can be seen at present, KWS will be able to match the outstanding operating result of the past fiscal year,” said Philip von dem Bussche.

In the first quarter, the KWS Group had just over 3,100 employees. Plans call for this level to be maintained throughout fiscal 2008/2009. This would correspond to an increase in the size of the workforce by almost 10% over that of the previous year (2,856). The research and development unit in Einbeck will be strengthened in particular.

KWS launches employee stock participation program

The employees of KWS ensure the company’s lasting success. For that reason, their participation in the long-term success of our company is to be enabled to a greater extent than before, thus increasing their ties of loyalty to the company. To that end, KWS is launching a new employee stock participation program. In all, the stock purchase program will have a volume of up to 30,000 KWS shares. At a discounted price 20% below the stock market price, all employees – with the exception of members of management and control bodies – will be able to purchase up to 500 shares each. In the current fiscal year, the program is initially restricted to the employees of the KWS Group in the EU 27 and to the period between December 1, 2008, and January 31, 2009.

Product segments in detail:

* The figures in parentheses are those for the previous year

Download Q1 Quarterly report of the KWS SAAT AG 2008/2009


Contact:
Georg Folttmann
- Head of Investor Relations -
Phone: +49 (0)5561 / 311-640
g.folttmann@kws.com