KWS SAAT AG shows solid growth

(Einbeck, October 31, 2007/No.29/gf) – KWS SAAT AG (ISIN: DE 0007074007), one of the leading international seed companies, grew profitably in the financial year ending on June 30, 2007. The KWS Group’s net sales increased by 6.5% to €537.9 million. Earnings before interest and taxes (EBIT) soared by 36.8% to €63.9 million, in particular as a result of proactive measures to optimize costs in the sugarbeet business. Net income was €38.2 (28.4) million, from which a dividend of €1.40 (€1.20) a share is to be distributed. Earnings per share improved to €5.61 from €4.16 the previous year.

Balanced product portfolio
KWS benefited in the past fiscal year from an expansion in global corn production. “We maintained our high sales volume in sugarbeet seed and grew our corn business. We now generate more than half of the Group’s sales in the corn segment,” said Andreas J. Büchting, Chairman of the Executive Board of KWS SAAT AG. “However, we will not neglect our important traditional sugarbeet segment and are aiming to post significant growth, above all in markets outside the EU.” KWS’ smaller cereals segment also recovered sharply in the past fiscal year, regaining its former earnings strength.

Strong foreign business
KWS has a presence in about 70 countries worldwide in the moderate climatic zone. It achieved its excellent growth in roughly equal parts in Germany and abroad. As in the previous year, revenue abroad accounted for 76% of total net sales. “As one of the most important international vendors of seed for agricultural crops, we have acquired new customers particularly in North America, Southeastern and Eastern Europe and Germany,” said Büchting.

KWS’ most valuable assets: its employees
2,739 (2,652) employees worked for the KWS Group worldwide in fiscal 2006/2007, 777 (782) of them at KWS SAAT AG. The company takes its social responsibility seriously and continues to train more young people than needed for its staff requirements. 72 (73) apprentices and 12 (12) trainees were employed in the year under review.

Good financial position, increasing liquidity
KWS strongly increased its net cash position to €60 (44) million in the past fiscal year. Net cash from operating activities fell slightly to €51 (53) million as pension commitments of €11 million were funded externally. Free cash flow was €24 (33) million, and the equity ratio rose from 59% to 60%.

Outlook
KWS will stick to its course of growing net sales in the current fiscal year 2007/2008. As plans stand at present, it aims to post earnings at prior-year level. As a medium-sized company with a long tradition of family ownership, the focus of KWS’ corporate strategy is to increase the company’s value for the long term.
 
Personnel matters
At its meeting yesterday, the Supervisory Board of KWS SAAT AG appointed Philip von dem Bussche as the new Chairman of the Executive Board. He succeeds Dr. Andreas J. Büchting, who will be nominated for election to the Supervisory Board at the upcoming Annual Shareholders' Meeting on December 13, 2007. The contract of Philip von dem Bussche was consequently extended through the end of 2012. The contract of another member of the Executive Board, Dr. Christoph Amberger, was also extended for five years.

Product segments in detail:

The Annual Report 2006/2007 and the management remarks at the press conference of October 31, 2007, in Hanover are available as of 10:00 a.m. the same day (31.10.2007) at http://www.kws.com/ir.

Contact:
Dr. Henning von der Ohe
Head of Corporate Communication
Phone: +49 (0)55 61 / 311-245
h.vonderohe@kws.com