Today the annual shareholders’ meeting of KWS SAAT AG, one of the leading plant breeding companies in the world with activities in 70 countries, took place in Einbeck. KWS is one of the parent companies of Great Lakes Hybrids.

• For the first time: corn major activity of KWS
• Changes in Executive Board announced

The shareholders agreed to the annual statement for the fiscal year 2005/2006 and relieved the Executive as well as the Supervisory Board. This expired financial year was characterised by the reform of the European Sugar Market Regime, which led to a 20 % reduction of sugar beet acreage.

Dividend of 1.20 € on last year’s level

The KWS-Group finished the financial year with an annual statement of Mio. € 28.4 (previous year: 34.8). This result was affected by the reform of the European Sugar market Regime; nevertheless, the company will pay a dividend of 1.00 € per share. Furthermore, the company decided to pay a jubilee bonus of € 0.20 per share on the occasion of the 150th anniversary of KWS. Subsequently, the total dividend remains on the same level as last year (€ 1.20).

For the first time: sales jump over Mio € 500

Group sales increased 2 % to Mio € 505.0 (495.3) and jumped so over the 500-million mark for the first time in the company’s history. The sales in the segment corn increased more than 11 % by which the decrease in the sugar beet segment could be compensated.
Earnings before interest and taxes (EBIT) reached Mio € 46.7 (56.3), 17.1 % below of last year’s level. This reduction depended also primarily on the reform of the European Sugar Market Regime. Nevertheless: KWS in their role as market leader in the sugar beet segment lost only 17 % of sales within the EU and were even able to grow by 15 % outside.

The future is favourable for KWS

“We coped quite well with the market confusions caused by the reform of the Sugar Market Regime”, stated Andreas J. Büchting, Chairman of the Executive Board of KWS SAAT AG. “At the same time, we initiated a number of developments for the future”, he continued, explaining that, on the one hand, the development of the corn segment is getting along very well. „On the other hand, our new energy crops are increasingly contributing to our company’s success.” Renewable resources and regenerative energy are the keywords in this context, he stated. „Our rape seed, cereal and sugar beet varieties are increasingly in demand for the production of biodiesel and bioethanol. Our energy maize for biogas production had a favourable start as well.”

Good 1st quarter for KWS

The beginning of the new financial year 2006/2007 was characterised by a higher cereal and rape seed sales. So the Executive Board maintained its forecast despite of continuative challenges of the reform of the Sugar Market Regime and, in addition, the weak US-Dollar. Based on a stable sales level (Mio € 505.0), KWS plans a slight improvement of operating results (Mio € + 46.7).

Changes in the Board

The Chairman of the Supervisory Board, Guenther Stratmann, welcomed the new Member of the Executive Board, Léon Broers (46), who will be responsible for Research and Breeding from July 1, 2007. This step will strengthen KWS and will prepare the exit of the Chairman Andreas J. Büchting scheduled for the next shareholders’ meeting (Dec. 13, 2007). The Chairman’s function will be transferred then to Board Member Philip von dem Bussche.

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