Corporate | 25 November 2005 10:15

KWS SAAT AG – double-digit growth in sales and profits

Corporate-news processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— KWS SAAT AG – double-digit growth in sales and profits Sales rise 11.4 % – net income for the year surges 16.9 % – increased dividend planned – 10-for-1 stock split planned (Einbeck, November 25, 2005 / No.26/GF) – In business 2004-5 (closing June 30) KWS SAAT AG (ISIN: DE0007074007) scored new record highs for sales and earnings. Consolidated sales of the seed breeding company increased 11.4 % from EUR 444 million to EUR 495 million while EBIT climbed 7.7 % from EUR 52.3 million to EUR 56.3 million. Consolidated net income for the year leaped 16.9 % from EUR 29.8 million to EUR 34.8 million. The Management and Supervisory Boards will propose to the General Meeting that the dividend be raised from EUR 11 to EUR 12 per share. “The Maize segment was the no. 1 growth driver. Maize seed sales grew 14 % and sourced 44 % of total business volume, up from 43 % one year earlier,” commented Dr. Andreas J. Büchting, Spokesman for the Board of KWS SAAT AG. In the United States, some 30 % more maize seeds were sold. The main reasons: very strong demand for genetically enhanced maize and the acquisition of former competitor Producers Hybrids. In the Sugar Beet segment KWS likewise further expanded its position as market leader and booked EUR 218 million or the highest sales in the Company’s history, up from EUR 194 million the prior year. KWS sold significantly more sugar beet seeds above all in countries not subject to the EU sugar regime, with the figure rising 17 %. Business outside Germany continues to flourish strongly Dr. Büchting reports that “today KWS generates some 75 % of sales outside Germany. The higher portion of foreign sales strengthens KWS’s position as the world’s no. 4 supplier of seeds to the agricultural industry.” Outside Germany, KWS booked EUR 371 million, as against EUR 325 million one year before. The Company is active in 68 countries, three more than in the prior business year, and by means of more intense sales activities in particular further enhanced its competitive position in the markets of South and Southeast Europe as well as North America. Sound financing structure The Company has for the first reported its financial figures in accordance with the IFRS international accounting standards. Based in Einbeck, KWS has raised its equity capital by 11 % from EUR 294 million to EUR 327 million thanks to its good earnings position. Cash earnings from operating business likewise rose 11 % from EUR 42 to EUR 47 million. AGM proposal: dividend increase and stock split KWS will propose to the General Meeting that on the back of the good performance, the dividend be increased from EUR 11 to EUR 12 per share. Moreover, by means of a stock split on a ratio of 10 for 1, the Company seeks to make the equity optically lighter and thus more fungible for shareholders. In this way, the total number of shares would change from 660,000 to 6,600,000 units. As part of the stock split, KWS seeks to increase the capital stock from own funds (and without issuing new shares) from EUR 17 million to EUR 19.8 million. The arithmetic proportion of the capital stock per share would then increase after the split from EUR 2.57 to EUR 3. Business segments – the details: in EUR million (as at June 30) 2003/2004 2004/2005 Change Consolidated sales 444.5 495.3 11.4 % Sugar beet 193.6 217.9 12.5 % Maize 191.3 217.6 13.8 % Cereals 52.7 52.4 -0.6 % Services & Agriculture 103.0 110.4 7.2 % Consolidated EBIT 52.3 56.3 7.7 % Sugar beet 31.9 31.0 -2.8 % Maize 9.4 10.6 13.2 % Cereals 3.6 3.6 1.8 % Services & Agriculture 7.4 11.1 48.6 % Consolidated net income for the year 29.8 34.8 16.9 % KWS expands reporting coverage and presents quarterly report as at Sept. 30 For the first time the Company’s history, KWS is publishing quarterly financial statements for the first three months of the business year. Owing to the decidedly seasonal nature of KWS’s business, on the long-term average only about 10 % of annual sales get booked in the first quarter. Consolidated sales for the period July through September 2005 amounted to EUR 41.9 million, as against EUR 42.8 million one year before. Breeding and sales activities have been further intensified. As expected, the Company posted a loss before interest and taxes of EUR 24.7 million, as compared with a loss of EUR 17.1 million for Q1 2004-5. Favorable outlook Due to the growth in maize seed sales the company believes it will score modest sales growth, with net income slightly down on the year. The Annual Report for 2004-5, the Quarterly Report Q1 2005-6 and the speeches given on the occasion of the press conference presenting the annual financial statements on Nov. 25, 2005 in Hanover can be downloaded from our Web site at http://www.kws.de/ir . For further details, please contact: Georg Folttmann Tel.: +49-5561-311-640 Mobile: +49-173-2910520 Email: g.folttmann@kws.de End of announcement (c)DGAP 25.11.2005 —————————————————————————— WKN: 707400; ISIN: DE0007074007; Index: Listed: Amtlicher Markt in Hannover; Geregelter Markt in Frankfurt (General Standard); Freiverkehr in Berlin-Bremen, Düsseldorf und Stuttgart