KWS Investor Presentation October 2012

Investor Presentation

KWS SAAT AG

October 18, 2012

2 Investor Presentation Oct., 2012

Fundamentals of Agronomical Seed Business

Climate change °C

1-2% average increase in yield

Research & Development Crop losses (due to vermin & diseases)

Source: DBV

10% Vermin

14% Weeds

13% Fungal infections

15% Insects

After harvesting 10%

Before harvesting 42%

Farmland per capita (in ha)

Source: UNO, 2007

1950 2000 2050(e)

0.5

0.3

0.2


216

154162

102

4841

3224 23 19

5 5

Global Importance of Agricultural Crops

Source: faostat.fao.org, May 2012 * Row Sugar Value, Source: zuckerverbaende.de, May 2012

Acreage 2010 in mn ha

not part of the KWS product portfolio

World production 2010 in mn t

651672

844

262

124

56 59

133

31

324

12 32


TOP 5 Global Agricultural Seed Companies Sales of Agricultural Crops

DuPont / Pioneer

Vilmorin

Syngenta

Monsanto

Sales in Europe in € bn

1,33 USD/EUR

Source: Phillips McDougall Consultants; own estimate KWS

0.7

0.6

0.6

0.4

0.4

DuPont / Pioneer

Vilmorin

Syngenta

Monsanto 5.8

1,6

1,0

0.6

Global sales in € bn

1.33 USD/EUR

5)

3)

2)

1)

4)

4.7

1.6

1.0

1) Sales 2010/11 „Seeds & Genomics“ w/o vegetables; FY: September 1 to August 31

2) „Seeds“ sales, Agriculture Segment 2011; FY: January to December 31

3) Sales 2011 w/o flowers & vegetables; FY: January to December 31

4) Sales 2011/12(e); FY: July 1 to June 30

5) „Field seeds“ sales 2010/11; FY: July 1 to June 30


Development of the KWS Group 2011/12


KWS at a Glance Business development

The KWS group includes 63 companies

EBIT 116.6

R&D-expenses 113.5

Employees 3,560

Sales 855.4

In € mn 2010/11

140.9

126.6

3,851

986.3

2011/12 in %

15.3

20.8

11.5

8.2


Track record 2007/08 – 2011/12

Sales in € mn EBIT in € mn

CAGR: +19.1% CAGR: +13.3%

Sales 2011/12: € 986.3 mn

EBIT 2011/12: € 140.9 mn


Total Sales by Region and Business Segment 2011/12

Cereals 9%

Corporate 1% Others

4%

Europe (w/o Germany) 40%

North America 33%

Germany

23%

By Region By business segments

Sugarbeets* 32%

* Includes potato sales

Corn 58%


Sales and EBIT-Margin of the KWS´ Business Segments 2007/08 – 2011/12

Corn Segment in € mn

Sugarbeet Segment in € mn

Cereals Segment in € mn

Net sales EBIT-margin Net sales EBIT-margin Net sales EBIT-margin

* Incl. potato sales

67 84

70 78 93

13% 14% 15%

19% 20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2007/08 2008/09 2009/10 2010/11 2011/12 2007/08 2008/09 2009/10 2010/11* 2011/12 2007/08 2008/09 2009/10 2010/11 2011/12

572


Sugarbeet Segment 2011/12


Sugarbeet Segment Sales Breakdown by Sugarbeets and Potatoes 2011/12

Segment sales

€ 313.4 mn

Potatoes

10%

Sugarbeets 90%


Sugarbeets EU-27 Net Sales Development and Market Share

108 112 113

132 129

2007/08 2008/09 2009/10 2010/11 2011/12

Net sales in € mn* 2007/08 – 2011/12

Market share* 2010/11

SESVanderHave 24%

KWS 37%

Strube 15%

Syngenta 9%

Desprez 5%

Betaseed 3% Maribo

3%

Lion Seeds 1%

Others 1%

* Sugarbeet seeds w/o potatoes


Global Sugarbeet Business Net Sales and Market Share

281 267

247

228

195

2007/08 2008/09 2009/10 2010/11 2011/12

* Sugarbeet seeds w/o potatoes

SESVanderHave 22%

KWS 24%

Syngenta 14%

Strube 11%

ACH Seeds 7%

Betaseed 10%

Maribo 4%

Lion Seeds 2%

Others 1% Desprez

5%


Net sales in €mn* 2007/08 – 2011/12


Corn Segment 2011/12


Increase of Corn Acreage in Almost Every KWS Region

NE: DK, UK, NL, BE; SOE: HU, BG, AT, RO; NA: US; ME: PL, CZ, SK; SE: IT, ES, PT; OE: RU, UA

0.8 1.6 1.7 2.6 3 3.85.2

7.3

15

33

39

1 Kleffmann, KWS, USDA

Market volume 2011/121

in mn ha

EU-27: 13.5 mn ha (+7%)

USA: 39 mn ha (+4%)


Corn EU 27 Net Sales Development and Market Share

EU-27 Acreage 13.5 mn ha

Pioneer 23%

Monsanto 14%

Vilmorin 12%

Syngenta 7%

Others 25%

KWS 19%

294

257

229

212

189

2007/08 2008/09 2009/10 2010/11 2011/12

Net sales in € mn 2007/08 – 2011/12


* Kleffmann, 2012


Pioneer 35%

Corn North America Net Sales Development and Market Share

Nordamerika

Monsanto 35%

Syngenta 7%

Others 12%

AgReliant 7%

Dow 4%

Net sales in € mn 2007/08 – 2011/12

Market share2)

2011/12

39 mn ha

1)

2) Estimated data. KWS, 2011.

1) 50-50 JV with Vilmorin, France

http://www.agreliantgenetics.com/


Sales in mn € 2008/09 – 2012/13(e)

China

Eastern Europe 28%

South America, Asia 36%

Other non EU 27 countries 36%

Breakdown of sales 2011/12

Corn – Other Regions


KWS in Brazil

Estimated sales: Approx. € 30 mn (FY 2012/13)

• World‘s third largest corn market (approx. 15 mn ha)

• Tropical & subtropical climate

• Growing importance of GM-crops

• Significant competitors: Pioneer, Monsanto und Syngenta


KWS in China


KWS in China: More than 30 Years of Market Experience

More than 80% of the total Chinese corn acreage is in the temperate climate zone

2008 2011

10 11

39 38

Source: WVZ, Oct 2010

30

52

1992 2002

Source: EarthTrends, Oct. 2011

77 74

Others 4% Rapeseed

3%

Cotton 8%

Vegetables 31%

Temperate zone

Subtropical zone

Sugar consumption per capita in kg

China

Europe

Meat consumption per capita in kg

China

Europe

Rice 21%

Corn 33%

Seedmarket Splitup by Agricultural Crops


Cereals Segment 2011/12


40%

Net sales in € mn

Others

8%

Barley 12%

Rapeseed 8%

Wheat 22%

Rye 50%

Net sales breakdown by product group

2007/08 2008/09 2009/10 2010/11 2011/12

Net sales EBIT-margin

Cereals activities of the KWS Lochow Group 2011/12


R&D and Outlook of the KWS Group


KWS: Global Breeding

Breeding and distribution in over 70 countries

Breeding stations

Trial locations


Research and Development at KWS – Highly Innovative & Tailor-made

• Approx. 1,200 employees have R&D duties

• 303 new varieties commercially registered in

2011/12

R&D expenses in recent years (in € mn)

Continually increasing R&D Budget

27

KWS Pipeline for GM Traits

Lead Gene

Identification

Proof of

Concept

Elite Event

SelectionDeregulation Commercialization

Roundup

Ready

Virus

Resistance

Winter

Beet

Fungal

Disease Control

Yield

Improvement

Glyphosate

Glyphosate

+ Insect Resistance

Drought

Tolerance

Nitrogen Use

Efficency

WH

EAT

Fungal

Disease Control

PO

TATO

Fungal

Disease Control

CO

RN

SU

GARBEETS

Oct., 2012 Investor Presentation


Outlook 2012/13

Cross-segment administrative costs and other costs for long-term research

projects will be grouped together as Corporate Functional Costs.

Business Segments Outlook 2012/13

FY 2011/12

Corn Net sales EBIT-Margin

+ 10% ≥ 10%

€ 571.5 mn

13.6% (€ 77.8 mn)

Sugarbeet1)

Net sales EBIT-Margin

+/- 0% ~22%

€ 313,4 mn 25.5% (€ 79.9 mn)

Cereals Net sales EBIT-Margin

+ 5% ~ 18%

€ 93,3 mn 20.3% (€ 18.9 mn)

Corporate Revenues Corporate EBIT 2)

€ ~ 10 mn € ~ -35 mn

€ 8,1 mn

€ -35,7 mn

Total net sales EBIT-Marge

≤ 10% ~ 11%

€ 986.3 mn 14.3% (€ 140.9 mn)

1) incl. Potatoes 2) First time disclosed in FY 2011/2012


Financials


Net sales 2010/11

Net sales 2011/12

€ 855.4 mn

€ +94 mn € +19.8 mn € +15.5 mn € +1.6 mn

MA

Positive development of the sugarbeet business in the USA and Eastern Europe.

Direct business Rye. Licensed-based wheat business.

Major Sales Drivers 2011/12

SB = Sugarbeet Segment MA = Corn Segment (“Maize“) CE = Cereals Segment CO = Corporate

Successful business development in core regions. Increasing Acreage.

€ 986.3 mn

CE

SB

CO


Major EBIT Drivers 2011/12

EBIT 2010/11

EBIT 2011/12

€ 116.6 mn

€ +14 mn € +14.2 mn € +4.4 mn € -8.3 mn

MA Increasing sales / operating margin

Additional added value Roundup Ready

Special items

Increasing Research

Increasing sales / operating margin

Special items

€ 140.9 mn

CE

SB

CO

Hybrid Rye

SB = Sugarbeet Segment MA = Corn Segment (“Maize“) CE = Cereals Segment CO = Corporate


Income Statement of the KWS Group 2011/12 according to IFRS

Figures in EUR thousands 2011/12 2010/11 Change in %

Sales 986,296 855,375 15.31%

Cost of sales 521,343 433,365 20.30%

Gross profit on sales 464,953 422,010 10.18%

Selling expenses 161,355 138,501 16.50%

Research and development expenses 126,571 113,539 11.48%

General administrative expenses 59,494 59,997 -0.84%

Other operating income 62,637 43,755 43.15%

Other operating expenses 39,316 37,091 6.00%

Operating Income 140,854 116,637 20.76%

Net financial income/expenses -5,141 -6,974 -26.28%

Result of ordinary activities 135,713 109,663 23.75%

Income taxes 41,317 36,741 12.45%

Net income for the year 94,396 72,922 29.45%

Share of minority interest 2,752 2,669 3.11%

Net income after minority interest 91,644 70,253 30.45%

Earnings per share 13.89 10.64 30.55%


Cash Flow Statement 2011/2012 according to IFRS

Figures in EUR thousands 2011/12 2010/11

Net income 94,396 72,922

Cash Earnings 117,832 104,126

Net cash from operating activities 104,161 101,213

Net cash from investing activities -56,578 -52,354

Net cash from financing activities -19,076 -10,237

Cash and cash equivalents 182,968 146,899

thereof cash and cash equivalents 142,569 110,278

thereof available-for-sale securities 40,399 36,621

Changes in cash and cash equivalents 36,069 9,685


Assets

in € mn

Sustainable and Solid Balance Sheet Structure as of June 30, 2012

221 255 307 324 410

450 501

550 578

682

0

200

400

600

800

1.000

1.200

2007/08 2008/09 2009/10 2010/11 2011/12

Noncurrent assets Current assets

398 434 493 530 603

91 99 114 119

162 183

223 250 253

328

0

200

400

600

800

1.000

1.200

2007/08 2008/09 2009/10 2010/11 2011/12

Equity Noncurrent liabilities Current liabilities

Equities & liabilities

in € mn



Back up


KWS Balance sheet as of June 30, 2012

Figures in EUR thousands 2010/112010/12 2010/11

Intangible assets 111,725 59,656

Property, plant and equipment 261,457 226,315

Other financial assets 37,100 38,392

Noncurrent tax assets 410,282 324,363

Inventories and biological assets 139,694 128,998

Trade receivables 309,422 268,209

Cash and cash equivalents at end of the year 182,968 146,899

Remaining current assets 49,950 33,495

Current assets 682,034 577,601

Total assets 1,092,316 901,964

Figures in EUR thousands 2010/11 2010/11

Suscribed capital 19,800 19,800

Capital reserve 5,530 5,530

Reatained earnings 553,258 483,925

Minoritiy interest 24,508 21,006

Equity 603,096 530,261

Long-term borrowings 23,033 19,421

Remaining noncurrent liabilities 138,451 99,304

Noncurrent liabilities 161,484 118,725

Short-term borrowings 52,119 14,205

Remaining current liabilities 275,617 238,773

Current liabilities 327,736 252,978

Total equity and liabilities 1,092,316 901,964


Taxes 2011/12

Figures in EUR thousands

Earnings before income taxes 135.7 (100%) 109.6 (100%)

Expected income tax expense* 39.5 (29.1%) 31.9 (29.1%)

Difference in income tax liabilities outside Germany 0.7 (0.5%) 2.8 (2.6%)

Tax portion for tax-free income -0.1 -(0.1%) -0.2 -(0.2%)

Tax portion for others 1.2 (0.9%) 2.2 (2.0%)

Reported income tax expense 41.3 (30.4%) 36.7 (33.5%)

2011/12 2010/11

A good third of our total sales are from countries with a tax rate of more than 30% whereas just more than a fifth are from countries

with a tax rate of less than 25%


KWS´ Share Facts

Key figures per October 10, 2012 (Xetra)

WKN: 707400 ISIN: DE0007074007 Symbol: KWS No. Of shares: 6,600,000

Closing call: € 214.20 Market Cap.: € 1.4 bn Free Float Market Cap.: € 426 mn 52 weeks high/low: € 221.95 /€ 142.60

30.1 % Free float

13.8 % Tessner Beteiligungs GmbH

56.1 % Families Büchting / Arend Oetker / Giesecke

Shareholder structure


November 29, 2012 1st Quarter Report 2012/2013

December 13, 2012 Annual Shareholders´ Meeting in Einbeck

February 26, 2013 2nd Quarter Report 2012/2013

May 28, 2013 3rd Quarter Report 2012/2013

October 23, 2013 Full year results 2012/2013, Annual press conference in Frankfurt, Analyst conference in Frankfurt

December 19, 2013 Annual Shareholders´ Meeting in Einbeck

Financial Calender


The Executive Board

Dr. Christoph Amberger (1957)

• Member of the Executive Board since 2001

• Responsibility: Corn, Cereals, Marketing

• Prior working experience: Bayer AG and Bayer Italia S.p.A.

• Degree in Agro Sciences Major Business Admin. Doctorate Dr. sc. agr.

Dr. Léon Broers (1960)


• Responsibility: Research & Breeding, Energy plants

• Prior working experience: Nunhems / Bayer CropScience

• Degree in Agro Sciences Major Business Admin. Doctorate Dr. sc. agr.

Dr. Hagen Duenbostel (1970)


• Responsibility: Finance, Controlling, IT, Legal, IR

• Prior working experience: PwC

• Degree in Business Administration. Doctorate Dr. rer. pol.

Philip von dem Bussche (1950)

• CEO / Member of the Executive Board since 2005

• Responsibility: Corporate Affairs, Sugarbeet, Human Resources

• Prev. President of the German Agricultural Association (DLG), farmer

• Degree in Business Administration


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. KWS SAAT AG does not intend to register any portion of the

offering in the United States or to conduct a public offering in the United States or to conduct a public offering of

Subscription rights or Securities in the United States.

This document contains certain forward-looking statements relating to the business, financial performance and results

of KWS SAAT AG and/or its subsidiaries and/or the industry in which KWS SAAT AG and its subsidiaries operate. These

forward-looking statements are based on KWS’ current plans, estimates, projections and expectations. These

statements are based on certain assumptions that, although reasonable at this time, may prove to be erroneous.

Prospective investors should not place undue reliance on these forward-looking statements.

If certain risks and uncertainties materialize, or if certain underlying assumptions prove incorrect, events described in

this document as anticipated, believed, estimated or expected may not occur, and KWS SAAT AG may not be able to

achieve its financial targets and strategic objectives. This presentation should not be viewed as definitive legal, tax, or

other advice regarding investment. All interested investors should seek independent third party legal, tax, and other

advice.

KWS SAAT AG does not intend, and does not assume any obligations, to update industry information or forward-

looking statements set forth in this document. KWS SAAT AG assumes no responsibility or liability in regard to the

completeness of the contents and the accuracy of opinions, estimates, prognoses, calculations, or other information

contained in this presentation. This presentation may contain confidential information. Neither the presentation nor

any of its contents may be reproduced or otherwise made available to third parties.


IR Contact Persons

Georg Folttmann

Head of Investor Relations

+49 5561 311-640

[email protected]

KWS SAAT AG

Grimsehlstr. 31

D-37555 Einbeck

Wolf-Gebhard von der Wense

Investor Relations

+49 5561 311-968

[email protected]

KWS SAAT AG

Grimsehlstr. 31

D-37555 Einbeck