DGAP-News

KWS SAAT SE: Stable growth despite tough market environment - Seite 2

comprehensive business activities in Europe.

All product segments grow their net sales

In an environment that is still characterized by low selling prices for the
farmer and slight declines in cultivation area in Europe, we were able to
grow net sales at the Corn Segment by 6.3% to EUR596.9 (561.3) million. In
North America, net sales of our joint venture AGRELIANT increased, although
cultivation area is expected to remain stable. This was aided by the
appreciation in the US dollar during the year, which more than compensated
for the negative effects from depreciation of the Ukrainian hryvnia and the
Russian ruble. We again recorded an increase in net sales in South America.
However, the segment's income was clearly lower compared with the same
period of the previous year, mainly as a result of the planned increase in
function costs for research and development and distribution. It was
EUR87.8 (103.4) million after the first nine months of the current fiscal
year.

KWS sugarbeet varieties currently occupy leading positions in terms of
performance in all major markets, enabling us to gain share in just about
all markets in the Sugarbeet Segment, despite difficult conditions. We
again increased our seed sales in North America and Turkey. However, sales
in our seed potato business were below the previous year. Net sales for the
Sugarbeet Segment were higher year on year at EUR288.6 (259.2) million. Its
income was EUR88.6 (75.6) million.

Net sales at the Cereals Segment after the third quarter were slightly up
year on year at EUR98.2 (97.2) million. The course of business was impacted
by the at times sharp differences in producer prices for wheat and rye.
Cultivation area for hybrid rye declined slightly, which had a negative
effect on the segment's income. In addition, expenditure on distribution
and research and development increased, meaning the segment's income was
below the level of the previous year at EUR20.9 (25.4) million.

The Corporate Segment posts cross-segment costs and research expenditures
with long planning timescales. On the other hand, it obtains net sales in
the single-digit million range from our farming activities. Its income is
therefore negative by virtue of its structure. Income has developed as
planned in the current fiscal year and was EUR -40.5 (-36.7) million in the
first three quarters of 2014/2015.

Growth targets confirmed

"We are confident about achieving our annual targets for the KWS Group
despite new challenges in the market environment," summed up Eva Kienle,