kws investor presentation february 2013
TRANSCRIPT
Investor Presentation KWS SAAT AG February, 2013
2 Investor Presentation February, 2013
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
3 Investor Presentation February, 2013
216
154 162
102
48 4132
24 23 195 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
651 672
844
262
12456 59
133
31
324
12 32
4 Investor Presentation February, 2013
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
1.1
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 2012/13(e); FY: July 1 to June 30
5) „Field seeds“ sales 2010/11; FY: July 1 to June 30
5 Investor Presentation February, 2013
Development of the KWS Group 2011/12 and outlook for 2012/13
6 Investor Presentation February, 2013
KWS at a Glance Guidance 2012/2013
The KWS group includes 63 companies
In € mn
2012/2013 e
2011/2012
in %
Sales
1,140
986.3
+15
EBIT
140
140.9
+/- 0
R&D-
Expenses
140
126.6
+10
Employees
4,429
3,851
+15
7
Sales Guidance 2012/13
Investor Presentation February, 2013
Corn Sugarbeet Cereals KWS Group
571.5
313.4
93.3
986.3
710 e
315 e
110 e
1,140 e
In € mn
Sales 2011/12
Sales Guidance 2012/13
8.1 5 e
Corporate
8
EBIT Guidance 2012/13
Investor Presentation February, 2013
Corn Sugarbeet Cereals KWS Group
77.8 79.9
18.8
140.9
86 e
69 e
23 e
140 e
In € mn
EBIT 2011/12
EBIT Guidance 2012/13
Corporate
-35.7 -39
9 Investor Presentation February, 2013
Track record 2008/09 – 2012/13e
Sales in € mn EBIT in € mn
CAGR: +15.8% CAGR: +12.3%
Sales 2012/13e: € 1,140 mn
EBIT 2012/13e € 140 mn
0
200
400
600
800
1000
1200
2008/0
9
2009/1
0
2010/1
1
2011/1
2
2012/1
3 e
0
20
40
60
80
100
120
140
2008
/09
2009
/10
2010
/11
2011
/12
2012
/13
e
10 Investor Presentation February, 2013
Sales and EBIT-Margin Development by Segment
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
382413
477
572
710 e
7%8%
13% 14%12%
0%
5%
10%
15%
20%
25%
30%
35%
40%
228247
294313 315 e
10%
14%
22%25%
22%
0%
5%
10%
15%
20%
25%
30%
35%
40%
84 70 78 93110 e
14% 15%
19%20% 20%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2008/09 2009/10 2010/11* 2011/12* 2012/13 e * 2008/09 2009/10 2010/11 2011/12 2012/13 e 2008/09 2009/10 2010/11 2011/12 2012/13 e
11 Investor Presentation February, 2013
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%
12 Investor Presentation February, 2013
Sugarbeet Segment 2011/12
13 Investor Presentation February, 2013
Sugarbeet Segment Sales Breakdown by Sugarbeets and Potatoes 2011/12
Segment sales 2012/13e
€ 315 mn
Potatoes ~ 10%
Sugarbeets ~ 90%
14 Investor Presentation February, 2013
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
15 Investor Presentation February, 2013
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%
Market share* 2010/11
Net sales in €mn* 2007/08 – 2011/12
16 Investor Presentation February, 2013
Corn Segment 2011/12
17 Investor Presentation February, 2013
Increase of Corn Acreage in Almost Every KWS Region
0.8 1.6 1.7 2.6 3 3.8 5.27.3
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%)
NE: DK, UK, NL, BE SEE: HU, BG, AT, RO NA: US ME: PL, CZ, SK SE: IT, ES, PT EE: RU, UA
18 Investor Presentation February, 2013
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
229212
189
2007/08 2008/09 2009/10 2010/11 2011/12
Net sales in € mn 2007/08 – 2011/12
Market share* 2011/12
* Kleffmann, 2012
19 Investor Presentation February, 2013
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
20
27 25 41
53
110
2008/09 2009/10 2010/11 2011/12 2012/13(e)
Investor Presentation February, 2013
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
21 Investor Presentation February, 2013
KWS in Brazil
Estimated sales: Approx. € 45 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
22 Investor Presentation February, 2013
KWS in China
23 Investor Presentation February, 2013
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
24 Investor Presentation February, 2013
Cereals Segment 2012/13(e)
25 Investor Presentation February, 2013
40%
Net sales in € mn
Others 7%
Barley 12%
Rapeseed 6%
Wheat 20%
Rye 55%
Net sales breakdown by product group 2011/2012
2008/09 2009/10 2010/11 2011/12 2012/13(e)
Net sales EBIT-margin
Cereals activities of the KWS Lochow Group 2012/13(e)
8470
7893
110
26 Investor Presentation February, 2013
KWS: Global Breeding
Breeding and distribution in over 70 countries
Breeding stations Trial locations
27 Investor Presentation February, 2013
Research and Development at KWS – Highly Innovative & Tailor-made
• More than 1,500 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
0
30
60
90
120
150
2008/09 2009/10 2010/11 2011/12 2012/13(e)
28
KWS Trait Pipeline
Investor Presentation February, 2013
GM Traits Sugarbeet Corn Wheat Potato
KW
S e
igen
e Tr
aits
Yield Genes 2/5 - - - Glyphosate 5/5 3/5 - - Glyphosate + Insect Resistence - 2/5 - - Fungal Disease Control 2/5 - 2/5 2/5 Nitrogen Use Efficiency - 1/5 - - Drought Tolerance - 1/5 - - Virus Resistance 3/5 - - - Winter Beet 2/5 - - -
5/5 = Commercialization
4/5 = Deregulation
3/5 = Elite Event Selection
2/5 = Proof of Concept
1/5 = Lead Gene Identification
29 Investor Presentation February, 2013
30 Investor Presentation February, 2013
KWS´ Share Facts
Key figures per Fenruary 25, 2013 (Xetra)
WKN: 707400 ISIN: DE0007074007 Symbol: KWS No. Of shares: 6,600,000
Closing call: € 297.10 Market Cap.: € 1,960 mn Free Float Market Cap.: € 590 mn 52 weeks high/low: € 297.10 /€ 156.90
30.1 % Free float
13.8 % Tessner Beteiligungs GmbH 56.1 %
Families Büchting / Arend Oetker / Giesecke
Shareholder structure
31 Investor Presentation February, 2013
May 28, 2013 3rd Quarter Report 2012/2013
October 24, 2013 Full year results 2012/2013, Annual Press and Analyst Conference in Frankfurt
November 28, 2013 1st Quarter Report 2013/2014
December 19, 2013 Annual Shareholders´ Meeting in Einbeck
Financial Calender
32 Investor Presentation February, 2013
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) • Member of the Executive Board since 2007 • 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) • Member of the Executive Board since 2003 • 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
33 Investor Presentation February, 2013
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.
34 Investor Presentation February, 2013
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