KWS's Investor Presentation May 2012

Investor PresentationKWS SAAT AGMay 2012

2 Investor PresentationMay 24, 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)

0.50.3

0.2


226

158 159

100

5440

3124 19

7 4

Global importance of agricultural crops

Acreage

2009 in mn ha

Source: faostat.fao.org, Oct

2011 * raw

sugar, Source: WVZ

not part of the KWS product portfolio

687 685

819

223

152

56 62

133

330

18 34

World production

2009

in mn

t

Suga

r cane

Whe

at

Rice

Corn

Soyb

eans

Barle

y

Suga

rbee

ts

Sorg

hum

Rape

seed

Pota

toes Rye

Cane

suga

r *

Whe

at

Rice

Corn

Soyb

eans

Barle

y

Beet

sug

ar*

Sorg

hum

Rape

seed

Pota

toes Rye


Development of the KWS Group

2010/11


TOP 5 global agricultural seed companies Sales of agricultural

crops

Sales

in €

bn

1,37 USD/EUR

Vilmorin5)

Syngenta 3)

DuPont / Pioneer2)

Monsanto1)

4)

5.6

4.0

1.3

0.9

0.6

1) Sales 2010/11, „Seeds&Genomics“

w/o vegetables. FY: Septermber

1, to August 31

2)

„Seeds“

sales

A&N segment

2010.

FY: January 1, to December 31

3) Sales 2010 w/o flowers

& vegetables. FY: January

1, to December

31

4)

Sales 2010/11; FY: July

1, to June

30

5)

„Field

seeds“

sales

2010/11; FY: July 1, to June 30


KWS at a glance

Business development

The KWS group includes 61 companies

EBIT 117

R&D-expenses 114

Employees 3,560

Sales 855

In €

mn 2010/11

~ 140

~ 122

~ 3,850

~ 980

2011/12 (e)


Track record

2007/08 –

2011/12 (e)

Sales

in €

mn EBIT

in €

mn

Sales 2011/12 (e):

~ €980 mnEBIT 2011/12 (e): ~

€140 mn

0

200

400

600

800

1000

2007/0

8

2008/0

9

2009/1

0

2010/1

1

0

20

40

60

80

100

120

140

2007/0

8

2008/0

9

2009/1

0

2010/1

1

2011/1

2 (

e)

2011/1

2 (

e)

CAGR (e): +18.9 %CAGR (e): +13.1 %


Total sales by region and business segment

2010/11

Cereals

9%

Breeding & Services

1%Others

5%

By Region By business segments

Sugarbeets*

34%

* Includes for the first time potatoes sales

Corn

56%

Germany25%

Europe (w/o Germany)

40%North America

30%


Sales and EBIT-margin

of the

KWS´

business

segments

2007/08 –

2011/12 (e)

Corn

Segment

in €

mnSugarbeet

Segment

in €

mnCereals

Segment

in €

mn

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

* Incl. potato

sales

195

228247

294 305

14%

24%

14%

10%14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

329

382413

471

7% 7%8%

13% 13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

6784

70 7795

13% 14% 15%

19%21%

0%

5%

10%

15%

20%

25%

30%

35%

40%

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

570


KWS: Global breeding in the temperate climate zone

Breeding and distribution in over 70 countries


Research and development at KWS –

highly innovative & tailor-made

• Approx 1,200 employees have R&D duties

•

296 new varieties commercially registered in 2010/11

R&D expenses in recent years

(in €

mn)

Continually increasing R&D Budget

0

30

60

90

120

150

2007/08 2008/09 2009/10 2010/11 2011/12 (e)


Successful

breeding:

150 years 14t/ha sugar yield

Breeding

target

by

2020:

1850 1900 1950 2000 2011

5 t/ha

10 t/ha14 t/ha

3 t/ha1 t/haSugar

yield

t/ha sugar


Sugarbeet

Segment

2010/11 (e)


Sugarbeet

Segment Sales

Breakdown by Sugarbeets and Potatoes 2011/12 (e)

Segment sales

~ €305 mn

Potatoes12%

Sugarbeets 88%


Sugarbeets EU-27

Net sales development and market share

EU-27

Acreage 1.6 mn

ha

Desprez

39%

Others

3% KWS

40%

108 112 113132 123 (e)

0

50

100

150

200

250

300

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

Net sales in €mn*

2007/08 –

2011/12 (e)

CAGR: 3.3 % (e)

Syngenta

18%

* Sugarbeet

seeds w/o potatoes

Market share*

2010/11


Desprez

38%

Syngenta

20%

Others

8%

Global sugarbeet

business

Net sales

and market

share

270 (e)267

247

228

195

0

50

100

150

200

250

300

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

CAGR: 8.5 % (e)

Global

Areage

4.8 mn

ha

KWS

34%

Net sales in €mn*

2007/08 –

2011/12 (e)Market share*

2010/11

* Sugarbeet

seeds w/o potatoes


Corn Segment

2010/11 (e)


Increase

of corn

acreage

in almost

every

KWS region

NE: DK, UK, NL, BE

SEE: HU, BG, AT, RO

NA: US

ME: PL, CZ, SK

SE: IT, ES, PT

EE: RU, UA1

Kleffmann, KWS, USDA

4,53,83,02,51,71,30,8

37,4

30,0

6,3

u ro

u ro u ro

h la k re i t in

i

r o u ro p C h

i na

e ri

0.8 1.3 1.7 2.5 3.03.8

4.56.3

30.0

37.4

North

Amer

ica

Northe

rn E

urop

e

Mid

dle

Euro

pe

Sout

h Eu

rope

Ger

man

y

Fran

ce

Arge

ntin

aSo

uth

East

ern

Euro

pe

East

ern

Euro

pe

Chin

a

Market volume

2010/111

in mn

ha

EU 27: 12.6 mn

ha (+8%)

USA: 37.4 mn

ha (+5%)


Corn EU 27


EU-27

Acreage 12.6 mn

ha

Pioneer

24%

Monsanto

13%

Vilmorin

13%

Syngenta

7%

Others

25%KWS

18%CAGR: 10.3 %

* Kleffmann, 2011

Net sales €mn

2007/08 –

2011/12 (e)Market share

2011

189

212229

257

280 (e)

0

50

100

150

200

250

300

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


Pioneer

32%

235

285

318

358

0

50

100

150

200

250

300

350

400

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

Corn

North America


North America

Acreage 37.4 mn

ha

Monsanto

32%

Syngenta

7%

Others

18%AgReliant

7%Dow

4%CAGR: 18.3 %

1)

50-50 JV with Vilmorin, France 2)

Estimated

data. KWS, 2011.

AgReliant´

1)

net sales

2007/08 –

2011/12 (e) in €mn

Market share 2)

2010/11

460 (e)


Cereals Segment

2011/12 (e)


Cereals -

Net sales development and breakdown

by products 2011/12 (e)

Others

8%

67 707784

9513% 14% 15%

18%

21%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2007/08 2008/09 2009/10 2010/11 2011/12 (e)

Rye RapeseedBarelyWheat

Net sales in €

mnNet sales breakdown by product group

Net sales EBIT-margin

Barley

12%

Rapeseed

8%Rye

50 %

Wheat

22%


Outlook

2011/12 (e)

Cross-segment administrative costs and other costs for long-term research projects will be grouped together as Corporate Functional Costs.

1) incl. Potatoes

2) First time disclosed

in FY 2011/2012

KW

S G

rou

p

Business Segments Outlook

2011/12FY

2010/11

CornNet salesEBIT-Margin

~ €570 mn

ca. 13 %€471 mn

13

%

Sugarbeet1)

Net salesEBIT-Margin

~ €305 mn

ca. 24 %€294 mn

14 %

CerealsNet salesEBIT-Margin

~ €95 mn

ca. 21 %€77 mn

19 %

Corporate RevenuesCorporate Functional Costs2)

~

€10 mn~ €30 mn

n.a.

Total net

salesEBIT-Margin

~

€980 mn

≥

14

%€855.4 mn

13.6 %


KWS: Strategy for further growth

Eastern Europe

Corn Dent x Dent

(late maturing varieties for temperate regions, high yield potential)

EU

Corn Dent x Flint

(early maturing varieties)

Sugarbeets

Cereals

Energy crops

TraitsSunflowers

Growthdrivers

Strategicperspectives China

Winter Rapeseed (EU) Potatoes

Maintenance of market leadership


KWS Energy Crops

2010/11


KWS Energy Crops

Corn Sugarbeets

Rye Sunflowers

Rapeseed

Sorghum

Bioethanol •

Biogas •

Biodiesel

About

17% of KWS´total

sales

are

from

energy

crops


Estimated breakdown of total energy sales

by energy crop 2010/11

€60 mn

€45 mn

BiogasEthanol

20

08

/0

9

20

09

/1

0

€45 mn

€40 mn

20

09

/1

0

20

10

/1

1

Total sales of energy crops in fiscal year 2010/11(e):

€145 mn

Corn

€20 mn€20 mn

Ethanol & Biogas

Sugarbeets

Rapeseed

Cereals, Sunflowers, Sorghum

€10 mn

Biodiesel

€10 mn

€10 mn€10 mn

Biogas, Ethanol & Biodiesel


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 % Corn

33 %

Vegetables

31 %Temperate

zone

Subtropical

zone

Sugar

consumption

per capita

in kg

China

Europe

Meat consumption

per capita

in kg

China

Europe

Rice

21 %



KWS´

share

facts

Key figures per May 22, 2012 (Xetra)

WKN:

707400

ISIN:

DE0007074007

Symbol:

KWS

No. Of shares:

6,600,000

Closing

call:

€182.05

Market Cap.:

€1.2 bn

Free Float Market Cap.:

€362 mn

52 weeks

high/low:

€201.50 /€131.40

30.1 %

Free float

13.8 %

Tessner

Beteiligungs

GmbH56.1 %

Families Büchting

/ Arend

Oetker

/ Giesecke

Shareholder structure


Financial calender

Annual Shareholders´

Meeting in EinbeckDecember 13, 2012

1st Quarter Report 2012/2013November 29, 2012

3rd Quarter Report 2011/2012May 24, 2012

Full year results 2011/2012;Annual press conference in Frankfurt;Analyst conference in Frankfurt

October 18, 2012


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


DisclaimerThese 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.

Forward looking statements

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 [email protected]

KWS SAAT AGGrimsehlstr. 31D-37555 Einbeck

Wolf-Gebhard von der Wense

Investor Relations+49 5561 [email protected]

KWS SAAT AGGrimsehlstr. 31D-37555 Einbeck