KWS and the Danish potato business. Gerard Bovée March, 2013

Transcription

1 KWS and the Danish potato business Gerard Bovée March, 2013

2 Agenda 1. General information about KWS SAAT AG 2. General information about KWS POTATO 3. Future of Danish seed potato Business 4. Strategy of KWS POTATO 5. Production location 6. Quality 7. Quantity 8. SUMMARY

3 November, 2012 Investor Presentation

4 TOP 5 Global Agricultural Seed Companies Sales of Agricultural Crops Global sales in bn 1.33 USD/EUR Sales in Europe in bn 1,33 USD/EUR Monsanto 1) 5.8 DuPont / Pioneer 0.7 DuPont / Pioneer 2) 4.7 Syngenta 0.6 Syngenta 3) ) 1,0 1.0 Vilmorin 0.4 Vilmorin 5) 0.6 Monsanto 0.4 Source: Phillips McDougall Consultants; own estimate KWS 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 2011/12(e); FY: July 1 to June 30 5) Field seeds sales 2010/11; FY: July 1 to June 30

5 Track record 2007/ /12 Sales in mn EBIT in mn CAGR: +13.3% CAGR: +19.1% Sales 2011/12: mn EBIT 2011/12: mn

6 KWS Division organization Mais segment Sugarbeet segment Cereal segment Mais Colza Sugarbeet Potato Reseach & Developement

7 Sales and EBIT-Margin of the KWS Business Segments 2007/ /12 Corn Segment in mn Sugarbeet Segment in mn Cereals Segment in mn % 35% 30% 14% 15% 19% 20% 20% 25% 20% 15% % 5% 200 7/ /0 9/ /1 0/ / / / / 11* 2011/ / /1 0 0% / 2012/13 10 / (e) Net sales EBITmargin Net sales EBITmargin Net sales EBITmargin * Incl. potato sales

8 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

9 November, 2012 Investor Presentation

10 History KWS founded at Klein Wanzleben KWS starts potato activities under Ragis KWS moves to Einbeck KWS sells shares of Saka Ragis 50/50 JV between Van Rijn and KWS KWS POTATO B.V. (100% KWS) Mr. Van der Weele sells his 96 ha to KWS Opening KWS POLDERSTATION in Nagele

11 The main varieties of KWS POTATO BAFANA 75 ha - Frites fast-food - Whiteflesh - Longoval CAMEL 10 ha - Red Export - AM-ADE - Strong virus INOVA 90 ha - Firm cooking - Yellow flesh - NW-Europ ELMUNDO 110 ha - Table/export - Spunta segm. - Bulc delivery EUROSTAR 60 ha - Frites / ware. - Exportg susc. - AM-ADE VITABELLA 10 ha - Organic - Late blight Res. - ware - Presentation EVEREST 175 ha - Early export - 60 mm - Longoval SANTANA* 110 ha - Frites fast food - White flesh - Export Egypte RAMOS* 325 ha - Frites / table - NW-Europa, UK - Russia VR ha - Crisps - Rendement - Virus!! LABADIA 75 ha - ML-sea - Longoval VR ha - Red early export - Table market - Firm cooking yellow

12 March 13 Introduction KWS

13 STRATEGY Potato is a new crop in the total strategy of KWS SAAT AG KWS is in priority breeder and no trader. Long term oriented Think Global Contact with global players Act local Contact with local suppliers and customers Contact personal Face to face communication Regional representatives 13

14 STRATEGY Clear message about responsibilities For KWS Varieties Market (risks) For Grower Production (volume) Quality For Suppliers Delivery Certification Packaging services/ 14

15 Corporate Principles We create a foundation for the farmer s success. Our customer relationships are characterized by expertise, continuity and dialog. We make better seed. We will continue to steadily improve the varieties and the technical quality of our seeds. Our goals are innovative, our work is transparent. Research & Development form the core competence of KWS. Our actions are independent, co-operative and returnoriented. Our co-operation is always governed by mutual respect of each other s cultures and corporate philosophies. We like working for KWS. The success and strength of KWS is built on the ideas and performance of each and every employee.

16 The orange team will succeed!! Department and/or Author s Initials Date 16

17 Production location The quality of the grower is more important, than the country he is producing. The quality of the product is more important then the cost price Some countries do have a preference for a certain destination or even specific not from that destination. KWS will supply each client, with each demand. 17

18 Production location Each country has a different certification schedule. At this moment EU is working on standardization. The difference in norms/tolerances is an item The difference in frequency of inspection. The most essential point is the understanding of the receiver. 18

19 Seed- and license production and prospects Trails from north to equator

20 Quality 100% client and destination oriented, not product driven. Al lot of clients are 100% external quality driven, because they have to supply a packer (washable) A lot of authorities are pest and disease driven. (we don t have this kind of disease in our country) WE HAVE TO DEAL WITH ALL OF THEM External quality is the first business card for a company or grower r. External quality is PRESENTATION 20

21 Quality Internal quality is the most important item in case Fusarium Erwinia Growth vigor Ect. Ect. Internal quality is CONFIDENCE! Quality is not what you deliver, but what the client thinks he receives! 21

22 Storage The most difficult part of the seed potato growing period Growing to the top, is easier then to stay at the top! Storage is a critical period to keep the seed potato in his best condition, so that he can supply a good product in the next generation. After delivery, everybody wants to deliver: a 100% presentable, hard and fresh potato But the most important one is vigor Storage is not only cooling. Storage is to look at the, Difference between varieties History of the growing season Time of delivery Harvest conditions The most important point is, to bring the potatoes on the best way of preparation in store, because the need to be their for a long, difficult time. KWS POTATO B.V. Ernst Arn CEO

23 Quantity Good stock measurement has a bigger influence on the financial result, than a good sales price 10% misestimating of stock gives 15% reduce of financial result : Good sampling of tonnage, size and quality. Sample instructions: 3 x 2 meters 4,5 m 2 in sample min. 25 meters of the plot edge No spraying tracks

24 Quantity Based on the sampling: The best destination will be found for your product From Cuba to Egypt. From Algeria to Greece; From Industry to local trader. Each client/destination will have his own special regulations. - From Early to late deliveries - From high quality to standard quality level - From bulk to packed in 10 kg. - From additional test (Erwina, Nemathodes, Virus) to EU standard - From big graded to small graded plots - From high classes to certified classes. If your product is part of a group/pool; The highest value can be found!! 24

25 Quantity Maximum production in kilograms, but The best potato product were grown, without any stagnation, but nitrogen is the biggest danger for quality. Realize that seed potatoes are the starting product for a other product. (We have to learn from our colleagues in the glasshouse segment in case of hygiene) KWS POTATO start project to increase the quality of basic seed production 25

26 Summary The cost price is everywhere the same. We have to deliver, what is demanded. Logistic supplier Agent KWS We have to guarantee quality. Our growers needs a fair price. All the partner in the chain have to take his responsibility in case of problems. Authority Client Grower Cobweb group KWS We must be a team player. If we will do that: Denmark has a future in the global potato plant business 26

27 Thanks Thanks for your attention and see you in the coming futher