DGAP-News: Successful business performance for KWS - Full-year targets confirmed after end of the third quarter 2015/2016


DGAP-News: KWS SAAT SE / Key word(s): 9-month figures/Quarter Results
Successful business performance for KWS - Full-year targets confirmed after
end of the third quarter 2015/2016

26.05.2016 / 07:30
The issuer is solely responsible for the content of this announcement.

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Einbeck, May 26, 2016
No. 32 | ww

Successful business performance for KWS - Full-year targets confirmed after
end of the third quarter 2015/2016

Revenues increased after nine months - Earnings in line with expectations -
Full-year targets expected to be met

KWS SAAT SE (ISIN: DE0007074007), one of the world's leading seed breeding
companies, reports a rise in net sales for the KWS Group of EUR833.2
million, or 7.1%, after the end of the first nine months of fiscal
2015/2016. Income (EBIT) was down year on year due to negative currency
effects, higher costs of sales and increased expenditure on research &
development and distribution totaling EUR128.7 (140.1)(1) million. After
the
end of the important third quarter, KWS confirms the full-year targets: Net
sales growth will be 5% to 10%; the EBIT margin is expected to be at least
10%.

"We're delighted that our customers are again putting their trust in KWS'
good variety performance this fiscal year and that we've therefore been
able to maintain our market position," said Eva Kienle, Chief Financial
Officer of KWS SAAT SE, summing up the third quarter, which is particularly
important due to the spring sowing season. "The stable earnings forecast of
an EBIT margin of at least 10% by the end of the fiscal year, despite the
challenging current market environment, rounds off these successful
results." The expansion of research & development and distribution were
continued during the first nine months. Spending on this increased by EUR21
million, consistent with expectations. In contrast, administrative expenses
increased only slightly and below-proportionately relative to net sales.
Increased costs of sales and negative currency effects also influenced the
operating income (EBIT). It fell year on year to EUR128.7 (140.1) million.
Total capital expenditure after nine months was EUR68.3 (95.6) million.
This figure was significantly higher in the previous year as a result of
the acquisition of the remaining shares in SOCIÉTE DE MARTINVAL S.A.
(MOMONT).

Segment reporting(2): all product segments are growing

Despite the still strained economic situation and declines in cultivation
area in many regions, the Corn Segment grew its net sales in the first
three quarters to EUR648.5 (596.9) million, an increase of 8.6% over the
previous year. Despite the depreciation of the Brazilian real, net sales in
Brazil grew in euro terms. Business in North America, helped in part by
exchange rate effects, and the positive trend in rapeseed business in
Europe also contributed to the rise in net sales. KWS was largely able to
defend its market shares in Europe, despite regional drops in net sales,
such as in France. The planned high level of expenditure for expanding
distribution and intensifying breeding work, acquisition of the remaining
shares in RIBER KWS SEMENTES in Brazil, as well as currency developments
had a negative influence on segment income. The segment's income at the end
of the third quarter was thus down year on year at EUR71.4 (87.8) million.

Net sales at the Sugarbeet Segment rose by 14.8% in the first nine months
of the current fiscal year to EUR331.4 (288.6) million. KWS was able to
grow net sales in many markets. In Eastern Europe and Turkey in particular,
market share were gained and business in North American also went well
thanks to constantly high variety performance. In Europe, the increase in
cultivation areas also had a positive effect on net sales development. The
segment's income rose by 22.2% to EUR108.3 (88.6) million. Positive
currency effects from the performance of the US dollar and lower write-
downs of receivables also contributed to this.

The Cereals Segment's net sales after the first nine months of the fiscal
year were EUR104.3 (98.2) million and thus slightly up year on year,
despite declining net sales from hybrid rye. This increase is largely
attributable to the acquisition of the remaining shares in MOMONT (SOCIETÉ
DE MARTINVAL S.A.) last year and the positive net sales trend for winter
barley. Due to the increased expenditure on research & development and
distribution in line with planning, as well as the lower contribution
margin from hybrid rye business, the segment's income after the third
quarter was EUR16.7 million and thus below that of the previous year
(EUR20.9 million).

The net sales in the Corporate Segment are generated primarily by the
farms. In the first nine months of the fiscal year they totaled EUR3.3
(3.4) million. In addition, all cross-segment costs for the central
functions of the KWS Group and basic research expenditure are allocated to
this segment. The segment's income is thus always negative, and was
−EUR43.4 (−40.5) million.

Forecast: full-year targets of KWS Group are likely to be met
In view of the business performance so far in the first nine months, KWS
confirms the annual targets for the whole of fiscal year 2015/2016. Even in
a tough market environment where cultivation areas are falling, KWS will
largely be able to maintain or expand its market positions. Net sales are
therefore expected to grow by between 5% and 10%. An EBIT margin of at
least 10% is anticipated.

KWS will continue to promote product development. Expenditure on research &
development will therefore rise as planned and will be around 17% of net
sales. Capital expenditure will again exceed EUR100 million this fiscal
year, due to expansion of research and production structures and the
acquisition of trait technology in the first quarter.

(1) The figures in parentheses are those for the previous year.
(2) Incl. 50:50 joint ventures.

About KWS*

KWS is one of the world's leading plant breeding companies. In fiscal
2014/2015, 4,700 employees in 70 countries generated net sales of EUR 986
million and earnings before interest and taxes (EBIT) of EUR 113 million. A
company with a tradition of family ownership, KWS has operated
independently for some 160 years. It focuses on plant breeding and the
production and sale of seed for corn, sugarbeet, cereals, rapeseed and
sunflowers. KWS uses leading-edge plant breeding methods to continuously
improve yield and resistance to diseases, pests and abiotic stress. To that
end, the company invested EUR 174 million last fiscal year in research and
development, 17.7 percent of its net sales. For more information:
www.kws.com. Follow us on Twitter(R) at https://twitter.com/KWS_Group.

*All figures exclude the joint ventures AGRELIANT GENETICS LLC., AGRELIANT
GENETICS INC., GENECTIVE S.A.

Contact:
Wolf-Gebhard von der Wense
Head of Investor Relations
Phone +49 (0) 5561 311 968
Mobile +49 (0) 151 18 85 56 73
wolf-gebhard.vonderwense@kws.com

KWS SAAT SE
http://www.kws.com


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26.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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   Language:    English                                                   
   Company:     KWS SAAT SE                                               
                Grimsehlstraße 31                                         
                37555 Einbeck                                             
                Germany                                                   
   Phone:       +49 (0)5561 311-0                                         
   Fax:         +49 (0)5561 311-322                                       
   E-mail:      info@kws.com                                              
   Internet:    www.kws.de                                                
   ISIN:        DE0007074007                                              
   WKN:         707400                                                    
   Indices:     S-DAX                                                     
   Listed:      Regulated Market in Frankfurt (Prime Standard), Hanover;  
                Regulated Unofficial Market in Berlin, Dusseldorf,        
                Hamburg, Munich, Stuttgart                                
 
 
   End of News    DGAP News Service  
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466711 26.05.2016