INVESTOR PRESENTATION - KWS SAAT SE & CO. KGAA
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Investor presentation KWS SAAT SE & Co. KGaA | January 2021
Our long-term goals
Profitable growth Innovation Independence Sustainability
Long-term strategy Significant investment Since generations Long-term economic
based on organic
growth combined with + in research and
breeding + supported by family
shareholders + success and
sustainable
acquisitions development
Seed specialist
2 KWS SAAT SE & Co. KGaA January 2021
KWS’ competitive environment
Globally Europe
Sales from agricultural crops in € billion Sales from agricultural crops in € billion
Bayer 7.8 Corteva 1.2
Corteva 6.7 0.7
Syngenta 2.0 Vilmorin 0.6
1.3 Syngenta 0.5
Vilmorin 0.9 Bayer 0.3
BASF 0.9 BASF 0.1
Source: AgbioInvestor 2019 and KWS estimates, excluding vegetable and flower business, as well as pasture and grazing activities
3 KWS SAAT SE & Co. KGaA January 2021
Strategic market position
100% 100%
Corteva
Bayer 80% 80%
60% 60%
Syngenta KWS
0% 20% 40% 60% 80% 100%
40% 40% SEED FOCUS
CORN / SOY FOCUS
Limagrain
20% 20%
BASF
CITIC
0% 0%
Data Source: Phillips McDougall, December 2018 and AgbioInvestor, October 2018 (% corn & soy sales of total seed sales; % seed sales of total ag sales)
4 KWS SAAT SE & Co. KGaA January 2021
Our portfolio includes seeds for 11 of the 13 most important crops/crop groups
1148
782 734
349
268
194 167 214 190 157
125 141
18 26 24 48 38 75 42 59 27 52 5 27 4 11
Sugar- Vege- Rape- Sorg- Sun- Sugar-
Corn Rice Wheat Soybeans Potato1 Barley Rye
cane tables seed hum flowers beet
X X
Global acreage (in ha million) Global production (in t million) X Minor strategic potential for KWS
Source: faostat.fao.org (Data for 2018), zuckerverbaende.de; 1 No commercial business for KWS, but target of strategic research and development.
5 KWS SAAT SE & Co. KGaA January 2021
Vegetable Seeds – A growing and highly profitable market
Global Commercial Seed Market Vegetable
VegetablesSeed Market
Market (million(in million US$)
US$)
Sugarbeet Sunflower 2165
1 bn. 1 bn. 1656
Rapeseed
2 bn. 9217
Cotton 5396
2 bn. Corn
Rice 15 bn.
2 bn. 2016 2017-2021 2022-2026 2026
Source: Kynetec 2016, estimated
Cereals
2 bn.
2016:
37 Bn. Market Expectations
USD Total
▪ Increasing global vegetable consumption
▪ Rising demand for fresh vegetables
Vegetables ▪ Annual vegetable seed market growth: 5-6% (CAGR)
5 bn.
Soybean ▪ Higher margins due to very wide range of varieties in the
8 bn. vegetable segment
Source: PhillipsMcDougall 2017
6 KWS SAAT SE & Co. KGaA January 2021
Update Q1 2020/2021
As is customary in the first quarter, the key earnings figures were negative
in € million Q1 2020/2021 Q1 2019/2020 +/-
Net sales 184.1 191.0 -3.6%
EBITDA -27.3 -21.8 -25.2%
EBIT -50.5 -42.3 -19.4%
Net financial income/expenses -15.2 -22.2 31.5%
Result of ordinary activities -65.6 -64.6 -1.5%
Income taxes -17.7 -18.0 1.7%
Net income for the period -47.9 -46.6 -2.8%
Earnings per share (in €) -1.45 -1.41 -2.8%
EQUITY RATIO TOTAL ASSETS CAPEX (w/o Acquisitions) NET DEBT
in % of total assets in € million in € million in € million
39.0% (40.9%) 2,325 (2,280) 19.9 (19.3) 620.6 (620.3)
Previous year’s figures in brackets
7 KWS SAAT SE & Co. KGaA January 2021
Product Segments
Corn Sugarbeet Cereals Vegetables
112 109
44 47
37 36
27
11 16 13
3 -3
-29 -32
-38 -41
Net sales EBIT Net sales EBIT Net sales EBIT Net sales EBIT
Q1 2019/2020 Q1 2020/2021
“Our operational business performance was stable by and large in the first quarter,” said Eva Kienle, Chief Financial
Officer of KWS. “However, the fall in the value of a number of currencies, in particular in South America and Eastern
Europe, weighed on our key financial indicators.”
8 KWS SAAT SE & Co. KGaA January 2021
Financials FY 2019/2020
FY 2019/2020 – Financial Highlights
€ 1,283m € 226m
Net sales EBITDA
15% (10% organic growth) 13%
€ 137m € 2.89
EBIT* EPS*
8% 8%
* incl. effects of purchase price allocation for acquisition of Pop Vriend Seeds
10 KWS SAAT SE & Co. KGaA January 2021Segment development - Corn
FY 2019/2020
+5.0%
776 Corn ▪ Sales growth driven by European markets and South
739
America
▪ Strong volume increase in Brazil due to higher
acreage and market share gains offset by weakening
BRL
▪ U.S. Joint Venture sales (AgReliant) on previous
year’s level
+15.9%
▪ Segment EBIT increased by 15.9% to € 67m (58m)
58 67
▪ EBIT margin improved to 8.6% (7.8%)
Umsatz Ebit Outlook 2020/2021
Net sales EBIT
in € million ▪ Sales / EBIT margin slightly above previous year
2018/2019 2019/2020
11 KWS SAAT SE & Co. KGaA January 2021Segment development - Sugarbeet
FY 2019/2020
Sugarbeet
▪ Segment sales increased by 6.6% despite decline of
+6.6%
492
global acreage
461
▪ Successful market introduction of CONVISO® SMART
technology – now available in 24 countries
▪ Segment EBIT decreased to € 170m (180m) due to
-5.3% one-time effect in FY 2018/2019 (sale of participation)
180 170 ▪ Strong profitability maintained
Outlook 2020/2021
▪ Sales / EBIT margin comparable to previous year
NetUmsatz
sales Ebit
EBIT
in € million
2018/2019 2019/2020
12 KWS SAAT SE & Co. KGaA January 2021Segment development - Cereals
FY 2019/2020
+11,9%
Cereals ▪ Cereals sales show strong increase of 11.9% to
191
171
€ 191m (171m)
▪ Sales performance mainly driven by growth of 27%
in hybrid rye
▪ Wheat & barley sales stable, oilseed rape below
previous year
+14,8%
▪ Segment EBIT up by 14.8% to € 26m (23m)
23 26 Outlook 2020/2021
▪ Sales stable
Net sales EBIT ▪ EBIT margin slightly below previous year
in € million
2018/2019 2019/2020
13 KWS SAAT SE & Co. KGaA January 2021Segment development - Vegetables
Vegetables FY 2019/2020
84
▪ Newly formed Vegetables segment contributed net
sales of € 84m – mainly driven by spinach and
bean seeds in the United States and Europe
▪ High profitability (excl. ppa-effects) maintained with
EBIT at € 26m
26
▪ ppa-effects include non-cash items of:
▪ € –11.1m from sale of inventories (at fair value)
▪ € –21.9m amortization of intangible assets
-8
Outlook 2021/2020
Net sales EBIT
(excl. ppa- EBIT ▪ Sales slightly below previous year (Corona-related)
in € million effects) (incl. ppa-effects) ▪ EBIT margin at 20–25% (excl. ppa-effects)
2019/2020
14 KWS SAAT SE & Co. KGaA January 2021Segment development – Corporate*
Corporate* FY 2019/2020
▪ Costs consolidated in the segment increased
mainly due to reorganization (ONEGLOBE), higher
4 5 centralized R&D expenses and impact of FX
hedging instruments
Net sales Outlook 2020/2021
▪ Improvement of EBIT
-97
in € million -105 *Segment includes cross-segment costs for the KWS Group’s central functions
EBIT
and basic research expenditure; EBIT typically negative
2018/2019 2019/2020
15 KWS SAAT SE & Co. KGaA January 2021Significant increase in Net sales and EBITDA
In € million 2019/2020 2018/2019 +/-
Net sales 1,282.6 1,113.3 15.2 %
EBITDA 225.5 199.7 12.9 %
EBIT 137.4 150.0 -8.4 %
Financial result -7.8 -5.5 -
Result of ordinary activities 129.5 144.5 -10.4 %
Taxes 34.3 40.4 -15.1 %
Net income 95.2 104.0 -8.4 %
Earnings per share (in €) 2.89 3.15 -8.4 %
EBIT MARGIN (excl. ppa-effects) COST OF SALES R&D INTENSITY Tax rate
EBIT as a % of net sales as a % of net sales as a % of net sales in %
13.3% (13.5%) 42.9% (41.2%) 18.4% (18.5%) 26.5% (28.0%)
Previous year’s figures in brackets
16 KWS SAAT SE & Co. KGaA January 2021Balance sheet as of June 30, 2020
Balance sheet structure – Assets Balance sheet structure – Equity and liabilities
in € million in € million
Current assets Non-current assets Current liabilities Non-current liabilities Equity
446
961 785
1.347 796
364
1.274
964 995
761
2018/2019 2019/2020 2018/2019 2019/2020
TOTAL ASSETS EQUITY RATIO NET DEBT Average ROCE
in € million as a % of total assets in € million in %
2,336 (2,115) 44.5% (45.5%) 495.5 (497.9) 8.4% (14.3%)
Previous year’s figures in brackets
17 KWS SAAT SE & Co. KGaA January 2021Capital expenditures
GEMÜSE
NORTH & SOUTH REST OF
AMERICA WORLD CORPORATE 1.5% CORN
11.6% 1.3% 35.7% 23.6%
Capital
expenditure
108
€ million
GERMANY
CEREALS
EUROPE
62.4% SUGARBEET
(EXCL.GER.)
9.3%
24.7% 29.9%
Investment focus: Germany
Previous year: € 96.6 million
18 KWS SAAT SE & Co. KGaA January 2021Two major investment projects of KWS
Extension of seed production for sugarbeet
Three new buildings in 30% more production
Einbeck capacity
CapEx volume In operation since
around € 50 million October 2020
New lab building
Three-storey building in 2,350 sqm of new
Einbeck laboratory and office
space
CapEx volume around Completion
€ 20 million spring 2020
19 KWS SAAT SE & Co. KGaA January 2021Forecast for the KWS Group for fiscal 2020/2021
Forecast 2020/2021 Actual 2019/2020
Net sales On previous year´s level €1,283 million
EBIT margin* 11 – 13% 13.3%
*w/o PPA effects from acquisition of Pop Vriend Seeds
20 KWS SAAT SE & Co. KGaA January 2021Seeding the future Challenges and solutions for modern agriculture
For efficient agriculture it is crucial to meet the challenges
of high-yield agricultural harvests
Population growth: Food demand is expected
to rise by 60% through 2050
Reduction of per capita cultivation area: The population
is growing faster than the acreage
Climate change: Change in abiotic stress requires
new variety characteristics
Harvest losses: Approx. 50% due to insects, weeds, fungal
diseases and damage in storage
Limited resources: water, fertilizers and pesticides
22 KWS SAAT SE & Co. KGaA January 2021We develop high yielding and resource-efficient
varieties for a sustainable agriculture
+ + + +
Safe yields Resource efficiency Increased nutrient Diversification
Securing yield stability and Reducing consumption of content Securing sustainability
developing higher yields for a water, fertilizer, chemical plant Optimization of energy and through broadly diversified
sustainable supply protection nutrient content for more breeding material
efficient use of acreage
23 KWS SAAT SE & Co. KGaA January 2021Examples for KWS´ contribution for more sustainability in agriculture
Organic seeds Biologicals Hybridrye
▪ Variety and performance testing • Biologicals can help to reduce ▪ Used as feed increases animal
for the early selection of efficient chemical crop protection health as a feed
organic varieties and plant material
• Useful microorganisms protect ▪ Good resistance to dryness
from conventional breeding
yield against pests, abiotic stress
programs ▪ Less nitrogen, water and crop
(cold, drought, etc.)
protection compared to wheat
▪ Seeds of high performance and
• Biologicals can be applied as
quality optimized for organic ▪ Smallest carbon footprint of
treatment directly to the seed. Very
farming cereals in Germany (greenhouse
efficient in protecting the seedling
gas emissions for cultivation)
right at the beginning of the
development
24 KWS SAAT SE & Co. KGaA January 2021Developing a new variety is a complex process
and takes 8 to 12 years
Corporate research and first Variety development and
crossings (up to 2 years) selection, multi-year and multi-
site tests (up to 8 years)
„Pre-Breeding“ and
material development
(up to 3 years) Variety approvals through the
Bundessortenamt (up to 3 years)
Cooperation with
research institutes
Variety approval,
Application-oriented variety protection
Research on important
agricultural crops (up to 5 years) Seed multiplication
until commercial use
(up to 2 years)
Basic research
on modal organisms (up to 5 years)
Source: BDP, changed
25 KWS SAAT SE & Co. KGaA January 2021Three of our strategic projects at KWS
CONVISO® SMART Hybrid potato seed Hybrid wheat
▪ Breeding of herbicide-tolerant ▪ Development of diploid hybrid ▪ Target: Introduction of a hybrid
sugarbeet varieties in cooperation potatoes, that can be multiplied wheat system with added value for
with Bayer and marketed in the form of farmers
seeds
▪ Advantage: highly effective and ▪ Advantages to conventional
flexible cultivation of sugarbeets: ▪ Advantages compared to plant wheat varieties (added value):
Weed control with lower amounts of potatoes: more effective breeding, Better yield improvement
herbicides lower risk of infections and pests,
significant lower storage and
transport cost
26 KWS SAAT SE & Co. KGaA January 2021Current innovation projects: Precision Farming & TerraSentia
Use of autonomous robots & flying drones to continuously
collect data in the fields and to evaluate them using artificial
intelligence.
Comprehensive
data collection Cost effciency
More accurate & faster Automated
breeding results analyses
Improved development
process
27 KWS SAAT SE & Co. KGaA January 2021Dividend: Increase to 0.70 Euro per share
Dividend payments and dividend rate of the last 10 years
Dividend payments in € per share
Dividend rate (Dividende payment / Net income)
0.70 €
0.67
0.64 0.64
0.60 0.60 0.60 0.60
0.56
0.46
24.7% 23.6% 24.3%
25 % 23.2%
20.8% 21.7% 21.6% 21.2% 21.3%
19.6%
20 %
10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20
Dividend policy continued
Dividends adjusted for 1:5 share split in March 2019
28 KWS SAAT SE & Co. KGaA January 2021Key figures for the KWS share, shareholdings and coverage
1 General Data
▪ ISIN
▪ Number of shares
DE0007074007
33.000.000
FAMILIES
BÜCHTING, 54.4%
AREND OETKER
▪ Type No-par value shares
TESSNER
BETEILIGUNGS 15.4%
2 Closing price (Xetra)* in € GMBH
▪ June 30, 2020 66.70
▪ June 30, 2019 64.20
FREE FLOAT
30.2%
3 Daily trading volume (avg.)* in shares/day
▪ 2019/2020 14,354
▪ 2018/2019 8,189
4 Market capitalization in € million
▪ June 30, 2020 2,201
▪ June 30, 2019 2,119
*Numbers adjusted for 1:5 share split in March 2019
29 KWS SAAT SE & Co. KGaA January 2021Financial calendar and IR contact
February 18, 2021 Semiannual Report 2020/2021
May 12, 2021 9M Report 2020/2021
October 20, 2021 Annual Report 2020/2021
Peter Vogt Martin Heistermann
Head of Investor Relations Senior Manager Investor Relations
Phone: +49 (0) 30 816914-490 Phone: +49 (0) 30 816914-341
E-Mail: peter.vogt@kws.com E-Mail: martin.heistermann@kws.com
KWS SAAT SE & Co. KGaA KWS SAAT SE & Co. KGaA
Bülowstraße 78 Bülowstraße 78
10783 Berlin 10783 Berlin
30 KWS SAAT SE & Co. KGaA January 2021Disclaimer
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 SE & Co. KGaA 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 SE & Co. KGaA and/or its
subsidiaries and/or the industry in which KWS SAAT SE & Co. KGaA 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 SE & Co. KGaA 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 SE & Co. KGaA does not intend, and does not assume any obligations, to update industry information or forward-looking statements set forth in this document.
KWS SAAT SE & Co. KGaA 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.
31 KWS SAAT SE & Co. KGaA January 2021You can also read
